MIRA INFORM REPORT

 

 

Report Date :

03.04.2012

 

IDENTIFICATION DETAILS

 

Name :

MOMENTIVE PERFORMANCE MATERIALS (INDIA) PRIVATE LIMITED (w.e.f 29.12.2006)

 

 

Formerly Known As :

GE BAYER SILICONES (INDIA) PRIVATE LIMITED (w.e.f. 28.12.1998)

GE SILICONES (INDIA) PRIVATE LIMITED

 

 

Registered Office :

The Millenia, Tower B, 4th Floor, Murphy Road, Ulsoor, Bangalore – 560 008, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

22.11.1995

 

 

Com. Reg. No.:

08 – 019244

 

 

Capital Investment / Paid-up Capital :

Rs.286.290 Millions

 

 

CIN No.:

[Company Identification No.]

U24299KA1995PTC019244

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRG00578E

 

 

PAN No.:

[Permanent Account No.]

AAACG9931F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacture (including manufacture through sub-contract) and distribution of silicone and silicone related products.

 

 

No. of Employees :

50 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (51)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 4000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having fine track. Genera financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.  

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

LOCATIONS

 

Registered Office :

The Millenia, Tower B, 4th Floor, Murphy Road, Ulsoor, Bangalore – 560 008, Karnataka, India

Tel. No.:

91-80-41471840

Fax No.:

91-80-41471850

E-Mail :

vandana.gulecha@momentive.com

gr.kowsalya@momentive.com

shobhita.singh@momentive.com

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Varghese Poulose Nalian

Designation :

Director

Address :

# 103, Sobha Ivory Apartments, St Johns Road, Bangalore – 560 042, Karnataka, India

Date of Birth/Age :

03.09.1966

Date of Appointment :

01.08.2004

DIN No.:

00045961

 

 

Name :

Mr. R Muthuraman

Designation :

Director

Address :

# 48/49 1A, Cross Banshankari 3 Stage, V Block, Bangalore – 560 085, Karnataka, India

Date of Birth/Age :

02.06.1962

Date of Appointment :

07.07.2004

DIN No.:

00043521

Other Directorship

S.No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Date of cessation

Company Status

Defaulting status

1

U24299KA1995PTC019244

MOMENTIVE PERFORMANCE MATERIALS (INDIA) PRIVATE LIMITED

Director

7/7/2004

7/7/2004

-

Active

NO

2

U74120MH2011FTC213947

MOMENTIVE SPECIALTY CHEMICALS (MUMBAI) PRIVATE LIMITED

Additional director

1/3/2011

1/3/2011

-

Active

NO

 

 

Name :

Mr. Robert Gnann

Designation :

Director

Address :

Buchenkamosweg 18, Bergisch, Gladbach – 51427, Germany

Date of Birth/Age :

16.06.1964

Date of Appointment :

25.05.2011

DIN No.:

03320237

 

 

KEY EXECUTIVES

 

Name :

Mrs. Shobhita  Shukla

Designation :

Secretary

Address :

J-204, Shriran Samruddhi Apartments, Varthus Manin Road, Whitefield, Bangalore – 560066, Karnataka, India   

Date of Birth/Age :

08.06.1981

Date of Appointment :

18.02.2011

PAN No. :

BKCPS3246P

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

Momentive Performance Materials Holdings GMBH, Germany

 

28629003

VP Nalian

 

1

R Muthuraman

 

1

Total

 

28629005

 

As on 30.09.2011

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacture (including manufacture through sub-contract) and distribution of silicone and silicone related products.

 

 

Products :

 

Description Product or Services

ITC Code

Silicone

391000

 

PRODUCTION STATUS

 

Particulars

Unit

31.03.2011

Installed Capacity

MT

3400

Actual Production

MT

1058

 

 

GENERAL INFORMATION

 

No. of Employees :

50 (Approximately)

 

 

Bankers :

Indian Bank, 66, Rajaji Salai, Chennai – 600 001, Tamil Nadu, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2011

As on

31.03.2010

Rupee term loans bank secured

257.500

280.000

Finance lease obligation long-term secured

9.087

7.962

Total

266.587

287.962

 

(A)  Secured by equitable mortgage of leasehold land hypothecation of all other fixed assets of the company.

(B)  Secured by hypothecation of vehicles taken on lease 

 

Unsecured Loan

As on

31.03.2011

As on

31.03.2010

Other debt unsecured 

268.470

0.000

Total

268.470

0.000

Represent unsecured loan form holding company.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountant

Address :

5th Floor Tower Dthe Mellenial and 2 Murohy Road, Ulsoor,  Bangalore – 560 008, Karnataka, India

PAN.:

AAEFP3641G

 

 

Holding Company :

Momentive Performance Materials GmbH

 

 

Ultimate holding company:

Momentive Performance Materials Inc., USA

 

 

 Fellow Subsidiaries :
  • Momentive Performance Materials - Hong Kong
  • Momentive Performance Materials - Italy
  • Momentive Performance Materials - Japan
  • Momentive Performance Materials - Shanghai
  • Momentive Performance Materials - Songjiang
  • Momentive Performance Materials - Thailand
  • Momentive Performance Material - Nantong.
  • Momentive Performance Materials – Singapore.
  • Momentive Performance Materials – Brazil
  • Momentive Performance Materials – South Korea

 

 

Other

  • GE Bayer Silicones (India) Private Limited Employee Provident Fund Trust
  • GE Bayer Silicones (India) Private Limited Superannuation Fund

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000

Equity Shares

Rs.10/- each

Rs.500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

28629005

Equity Shares

Rs.10/- each

Rs.286.290 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

286.290

286.290

286.290

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

730.416

624.659

563.215

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1016.706

910.949

849.505

LOAN FUNDS

 

 

 

1] Secured Loans

266.587

287.962

339.759

2] Unsecured Loans

268.470

0.000

0.000

TOTAL BORROWING

535.057

287.962

339.759

DEFERRED TAX LIABILITIES

13.841

9.261

0.000

 

 

 

 

TOTAL

1565.604

1208.172

1189.264

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

346.458

358.821

70.304

Capital work-in-progress

447.842

255.250

413.467

 

 

 

 

INVESTMENT

0.000

614.071

0.000

DEFERREX TAX ASSETS

0.000

0.000

4.350

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
400.050

297.992

213.799

 

Sundry Debtors
382.883

397.877

467.239

 

Cash & Bank Balances
344.195

220.499

208.845

 

Other Current Assets
136.091

112.393

0.000

 

Loans & Advances
27.209

13.471

123.093

Total Current Assets
1290.428

1042.232

1012.976

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
437.501

410.935

273.891

 

Other Current Liabilities
50.531

28.449

24.781

 

Provisions
31.092

8.748

13.161

Total Current Liabilities
519.124

448.132

311.833

Net Current Assets
771.304

594.100

701.143

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1565.604

1208.172

1189.264

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

 

 

 

 

 

SALES (Gross)

2125.224

1838.497

1462.694

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

179.276

116.336

69.702

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

20.209

18.742

13.362

 

 

 

 

 

 

PROFIT BEFORE TAX

159.067

97.594

56.340

 

 

 

 

 

Less

TAX                                                                 

53.310

36.151

20.049

 

 

 

 

 

 

PROFIT AFTER TAX

105.757

61.443

26.291

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

426.512

365.069

338.778

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

532.269

426.512

365.069

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

132.297

72.753

 

 

Commission Earnings

166.457

0.000

6.826

 

 

Service Income

 

34.160

9.455

 

TOTAL EARNINGS

166.457

166.457

89.034

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

218.858

214.936

 

 

Capital Goods

NA

3.835

9.052

 

TOTAL IMPORTS

NA

222.693

223.988

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.84

2.15

1.27

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.98

3.34

1.80

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
9.72

4.39

2.43

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.16

0.11

0.07

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.04

0.81

0.77

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.49

2.33

3.25

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

BACKGROUND

 

Subject was incorporated as GE Silicones (India) Private Limited, a private limited company under the Companies Act, 1956 on 22 November 1995. The silicone division of GE globally entered into a Joint Venture (JV) with Bayer AG of Germany (Bayer) on 1 July 1998, wherein it was agreed that GE and Bayer would hold 50.1% and 49.9% respectively of the total issued capital of that Company. Consequent to the JV, the name was changed from GE Silicones (India) Private Limited to GE Bayer Silicones (India) Private Limited on 28 December 1998. On 3 December 2006, globally, GE purchased the stake of Bayer and sold 90% of its stake in the global silicones business to Apollo Management VI LP. Consequently, the erstwhile silicones business of GE was formed into a new company named Momentive Performance Materials. Subsequent to this development, the name of the Company was changed to subject with effect from 29 December 2006.

 

The Company’s operations primarily relate to the manufacture and trading of all types of silicones and silicone related products, delivered to customers in various business segments. Accordingly revenues represented along product classes comprise the primary basis of segmental information set out in these financial statements. Secondary segmental reporting is performed on the basis of geographical location of the customers.

 

The accounting policies consistently used in the preparation of the financial statements are also applied to record revenue and expenditure in individual segments.

 

The primary segments of the Company:

a) Fluids and intermediates - includes manufacture and trading in silicone fluids.

b) Heat cured rubber - includes manufacture and trading in silicone rubber.

c) Resins and specialities – includes manufacture and trading in silicone resins, speciality coatings & poly-urethane additives

d) Sealants - includes manufacture and trading in silicone sealants

 

Assets, liabilities, revenues and direct expenses in relation to segments are categorized based on items that are individually identifiable to that segment, while other items, wherever allocable, are apportioned to the segments on an appropriate basis. Certain items are not specifically allocable to individual segments as the underlying services are used interchangeably. The Company, therefore, believes that it is not practicable to provide segment disclosures relating to such items, and accordingly such items are separately disclosed as unallocated.

 

Fixed assets of the company are located only in India.

 

Customer relationships are driven based on the location of the respective clients. The geographical segments include “Within India” and “Outside India”.

 

 

CONTINGENT LIABILITY

 

Contingent Liability Bank Guarantees Rs.1.000 Millions - Disputed Income Tax Matters Rs.3.690 Millions - Disputed Excise Duty Matters – Rs.6.866 Millions - Disputed Sales Tax (Work Contract Tax) Matters Rs.10.117 Millions, Rs.11.052 Millions, Claims against the company not acknowledged as Debts Rs.6.450 Millions

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U24299KA1995PTC019244

Name of the company

MOMENTIVE PERFORMANCE MATERIALS (INDIA) PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

The Millenia, Tower B, 4th Floor, Murphy Road, Ulsoor, Bangalore – 560 008, Karnataka, India

This form is for

Creation of charge   

Type of charge

  • Immovable property
  • Movable property (not being pledge)

Particular of charge holder

Indian Bank, 66, Rajaji Salai, Chennai – 600 001, Tamil Nadu, India

bangalorecity@indianbank.co.in

Nature of instrument creating charge

1. Medium Term Loan Agreement

2. Agreement of Hypothecation of Movables

Date of instrument Creating the charge

19.03.2009

Amount secured by the charge

Rs.350.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

12.50% per annum with monthly rests

 

Terms of Repayment

Repayable in 20 equated quarterly installments of fifteen months

 

Margin

50%

 

Extent and Operation of the charge

Charge extends by way of first charge on all the assets throughout the period of sanctioned limits

Short particulars of the property or asset(s) charged (including complete address and location of the property)

EM on land measuring 15.10 Acres at plot No.B-3, SIPCOT Industrial Estate, Oragadam, Sriperambudur, Chennai. Hypothecation of the whole of the present and future plant and machinery belonging to the company

 

 

FIXED ASSETS:

  • Leasehold Land
  • Leasehold Improvements
  • Plant and Machinery
  • Data Processing Equipment
  • Office Equipment
  • Furniture and Fittings
  • Computer Software
  • Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.16

UK Pound

1

Rs.81.80

Euro

1

Rs.68.34

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

51

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.