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Report Date : |
30.04.2012 |
IDENTIFICATION DETAILS
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Name : |
SEYA INDUSTRIES LIMITED (w.e.f
06.06.2011) |
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Formerly Known
As : |
SRIMAN ORGANIC CHEMICAL INDUSTRIES LIMITED |
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Registered
Office : |
T-14, M.I.D.C., Tarapur, Boisar, District – Thane – 401506, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
11.10.1990 |
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Com. Reg. No.: |
11- 058499 |
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Capital
Investment / Paid-up Capital : |
Rs.110.000 Millions |
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CIN No.: [Company Identification
No.] |
L99999MH1990PLC058499 |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing and Exporting of Pigment, Pharmaceuticals,
Agrochemicals and Rubber chemicals intermediates. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 7890000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However, trade relations are reported as
fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
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
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
T-14, M.I.D.C., Tarapur, Boisar, District – Thane – 401506, |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
B-12, Ghanshyam Chambers, New |
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Tel. No.: |
91-22-26732894 |
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Fax No.: |
91-22-66779569 |
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E-Mail : |
DIRECTORS
As on 31.03.2011
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Name : |
Mr. Ashok G. Rajani |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Virendra Singh Khurana |
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Designation : |
Director |
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Name : |
Mr. Ram Nath Arora |
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Designation : |
Director |
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Name : |
Mr. Asitkumar Bhowmik (Appointed w.e.f. from 2nd April
2011) |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Namita Tiwari |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of promoters and Promoter Group |
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1. Indian |
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Individuals / Hindu Undivided Family |
7817300 |
71.07 |
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Bodies Corporate |
50000 |
0.45 |
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Sub Total (A) |
7867300 |
71.52 |
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2. Foreign |
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Total
Shareholding of promoter and promoter group (A) |
7867300 |
71.52 |
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(B) Public
Shareholding |
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1. Institutions |
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Financial Institutions / Banks |
2000 |
0.02 |
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Sub Total (B) |
2000 |
0.02 |
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2. Non
Institutions |
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Bodies Corporate |
302900 |
2.75 |
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Individuals |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
2030500 |
18.46 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
380600 |
3.46 |
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Any other
(Specify) |
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Non Resident Indians |
416700 |
3.79 |
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Sub Total (B) |
3130700 |
28.46 |
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Total Public
Share Holding (B) |
3132700 |
28.48 |
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TOTAL
(A) + (B) |
11000000 |
100.000 |
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Shares
held by custodians and against which depository receipts have been issued (C) |
-- |
-- |
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Total
(A) + (B) +(C) |
11,000,000 |
100.000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Exporting of Pigment, Pharmaceuticals, Agrochemicals
and Rubber chemicals intermediates. |
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Products : |
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PRODUCTION STATUS
As on 31.03.2011
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Nitro Chloro Benezenes |
MT |
15750 |
15750 |
976.12 |
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Chloro Benezenes |
MT |
17400 |
17400 |
3373.45 |
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Note:
The licensed capacity is the license issued for the Tarapur plant
only.
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
Jagiwala and Associates Chartered Accountant |
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Address : |
Mumbai – 400056, |
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Solicitors : |
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Name : |
S.K. Srivastav and Company Advocates and Solicitors |
CAPITAL STRUCTURE
After 29.09.2011
Authorised capital of Rs.1100.000 Millions
Issued, Subscribed and Paid Up capital of Rs.110.000 Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs. 120.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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11000000 |
Equity Shares |
Rs.10/- each |
Rs. 110.000
Millions |
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Share Application Money Pending Allotment |
|
Rs. 1512.617
Millions |
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TOTAL |
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Rs. 1622.617 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
110.000 |
110.000 |
110.000 |
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2] Share Application Money |
1512.617 |
1307.824 |
907.729 |
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3] Reserves & Surplus |
350.642 |
346.140 |
346.140 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1973.259 |
1763.964 |
1363.869 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
52.493 |
52.493 |
52.493 |
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TOTAL BORROWING |
52.493 |
52.493 |
52.493 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2025.752 |
1816.457 |
1416.362 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
932.923 |
481.286 |
481.286 |
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Capital work-in-progress |
963.261 |
1188.861 |
61.459 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
103.130
|
78.505 |
77.200 |
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Sundry Debtors |
183.818
|
231.241 |
238.226 |
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Cash & Bank Balances |
2.287
|
0.257 |
0.856 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
39.834
|
17.228 |
724.182 |
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Total
Current Assets |
329.069
|
327.231 |
1040.464 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
180.401
|
168.530 |
149.986 |
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Other Current Liabilities |
9.764
|
7.073 |
3.958 |
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Provisions |
9.336
|
5.318 |
12.903 |
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Total
Current Liabilities |
199.501
|
180.921 |
166.847 |
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Net Current Assets |
129.568
|
146.310 |
873.617 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2025.752 |
1816.457 |
1416.362 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Sales |
220.489 |
0.386 |
0.000 |
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Excise Duty |
(13.618) |
(0.030) |
0.000 |
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Other Income |
0.179 |
0.468 |
0.000 |
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TOTAL |
207.050 |
0.824 |
0.000 |
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Less |
EXPENSES |
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Cost of Materials |
182.153 |
9.503 |
0.100 |
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Manufacturing & Other Expenses |
83.057 |
20.977 |
7.148 |
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Provision for Contingency |
9.339 |
0.000 |
0.000 |
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Capital Expd pending allocation of construction period |
(97.055) |
(31.121) |
(8.607) |
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Increase/(Decrease) in finished & semi finished goods |
(24.067) |
1.300 |
1.359 |
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TOTAL |
153.427 |
0.659 |
0.000 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
53.623 |
0.165 |
0.000 |
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Less/ Add |
DEPRECIATION/
AMORTISATION |
48.096 |
0.000 |
0.000 |
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PROFIT BEFORE
TAX |
5.527 |
0.165 |
0.000 |
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Less |
TAX |
1.025 |
0.165 |
0.000 |
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PROFIT AFTER TAX
|
4.502 |
0.000 |
0.000 |
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Earnings Per
Share (Rs.) |
45.02 |
0.00 |
0.00 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.17
|
0.00 |
0.00 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.51
|
42.75 |
0.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.44
|
0.02 |
0.00 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.00 |
0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.13
|
0.13 |
0.16 |
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Current Ratio (Current Asset/Current Liability) |
|
1.65
|
1.81 |
6.24 |
LOCAL AGENCY FURTHER INFORMATION
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Check List by Info Agents |
Available in Report (Yes / No) |
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1. Year of Establishment |
Yes |
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2. Locality of the firm |
Yes |
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3. Constructions of the firm |
Yes |
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4. Premises details |
No |
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5. Type of Business |
Yes |
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6. Line of Business |
Yes |
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7. Promoter’s background |
No |
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8. No. of Employees |
No |
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9. Name of person contacted |
No |
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10. Designation of contact person |
No |
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11. Turnover of firm for last three years |
Yes |
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12. Profitability for last three years |
Yes |
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13. Reasons for variation <> 20% |
------ |
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14. Estimation for coming financial year |
No |
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15. Capital in the business |
Yes |
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16. Details of sister concerns |
No |
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17. Major suppliers |
No |
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18. Major customers |
No |
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19. Payments terms |
No |
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20. Export / Import details |
No |
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21. Market information |
------ |
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22. Litigations that the firm / promoter involved |
------ |
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23. Banking Details |
Yes |
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24. Banking facility details |
Yes |
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25. Conduct of the banking account |
------ |
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26. Buyer visit details |
------ |
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27. Financials, if provided |
Yes |
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28. Incorporation details, if applicable |
Yes |
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29. Last accounts filed at ROC |
Yes |
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30. Major Shareholders, if available |
No |
BUSINESS
OPERATIONS
The Directors of the Company are happy to announce that the commercial production of Chloro Benzene and Nitro Aromatics has started. These trial runs have` proved successful, and the plant has been lined out by removing the teething troubles. The civil construction as per their plans for saving of energy is nearing completion. Most of the equipments required for energy conservation, for which orders were placed and advance paid, have arrived and are being installed. Construction of plant building for forward integration downstream products is in progress. Some of the equipments for value-added downstream products have also arrived. Production on trial basis for their additional value added downstream products are also in progress and are being carried out on plant scale. In particular, following departments of the business of the company have recorded remarkable progress and are at a very advance stage:
1. Coal fired boiler installation to provide us with low cost steam and heat energy, as well as in house electrical energy
2. Rationalization in raw material consumption has been implemented
3. Downstream products project work is in progress; and
4. The Company has also procured an additional plot of land of 74000 sq. metres, in close proximity to the existing plant in order to implement the above projects.
The products of the company have been well accepted in the domestic market. With new and modernized facilities and strict quality control procedures in force, the Management of the Company sees a bright future with respect to profitability once manufacture of all the products is commercially underway. The additional products being introduced will contribute not only to substantial savings in the purchase of raw materials, transport and other incidental costs, but are in themselves independent profit centers.
The Directors are confident to start commercial operations of the value added downstream products in foreseeable future
SHARE APPLICATION
MONEY
During the year in addition to and in continuation of contribution of the long term funds provider, towards the assignment of the debts of the bank and financial institutions, in its favour, as per existing contract, additionally provided funds to the tune of Rs.1512.617 million, as at 31st March 2011, towards the company's rationalization process, and accordingly the management of the Company had successfully negotiated with the fund provider to convert their entire contribution into equity shares of the Company. During the Annual General Meeting in September, 2010 some of the members/shareholders of the Company had requested that the shares to these funds providers be allotted at a premium instead of at par. The Management of your Company has successfully negotiated and has executed necessary contract based on which the company has agreed to allot 4,27,94,500 equity shares at a premium of Rs. 5/- per share and 5,12,17,600 equity shares at a premium of Rs. 7/- per share which at present will be treated as Application Money pending allotment and with due compliance of provisions of the Companies Act 1956 and Stock Exchanges, the conversion will take pace. After allotment the said shares will have pari passu rights with other shares of the Company. The said equity shares when allotted will be treated as consideration received in cash as per Circular no.8/32/(75) 77-CL-V,dated 13th March 1978 issued by the Company Law Board Department
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
ECONOMIC REVIEW
In the year gone by global economy continued on its path of recovery from the recession of 2008. Two themes have dominated the economy namely, the resurgence in growth post the economic crisis and the increasing pressure on natural resources which is pushing the prices of inputs and energy to record levels. However, this recovery has taken a two track approach with developed economies grappling longer with the wounds of the financial crisis while developing countries have recovered much faster. During the year, commodity prices have spiraled upwards to pre crises levels reflecting a combination of strong demand growth, supply shocks and excess liquidity being pumped by developed economies. Oil, metal and food prices have also risen considerably.
After a sharp decline in 2009, the
The turnaround has been faster in
OUTLOOK FOR THE
GLOBAL ECONOMY IN FY 2011-12
The IMF believes that the world economy will grow by 4.5% during the year 2011. This would be largely on account of the growth of the developing economies which are expected to grow by 6.5% while the developed world will grow 2.5%. Earlier fears of a double-dip recession have not materialized. The worry that an initial recovery driven by the fiscal stimulus would eventually fizzle, has not occurred. The fiscal stimulus has turned to fiscal consolidation, but private demand has, for the most part, taken the baton.
By contrast the crisis left no lasting wounds in emerging
market economies. Their initial fiscal and financial positions were typically
stronger and the adverse effects of the crisis were more muted. Exports have
largely recovered, and whatever shortfall in external demand they experienced
has typically been made up through increases in domestic demand. The outlook
for economic growth in
CHEMICAL INDUSTRY
- STRUCTURE AND DEVELOPMENT
The Chemical Industry in last one year has gone through the stages of recovery and revival. While FMCG, and Pharma based products had a very marginal or no impact of recession, the textiles and dyes, pigments and polymers industries were the most affected by the slowdown. With the recovery in the global markets, the demand for the products with applications into Textiles, Automotives, Pigments, Paints, etc. is expected to grow significantly. The Nitro Aromatics have also shown the same trend.
Nitro Aromatics
Industry
The Company's current business activity is Manufacturing of Nitro Aromatics. In line with the global recovery, the nitro aromatics and related industries such as the dye-intermediates, pigments, rubber chemicals, etc. are on a path to recovery. Also the overall good monsoon made a rebound for the pesticides and insecticides. Consequently, the nitro aromatic industry also showed sign of recovery. The Company has started its commercial operations and making its in roads in the market.
Industry Structure
and Developments:
SEYA'S STRATEGY
The industrial chemicals business continued to focus on building its domestic market share. Demand and prices have shown an upward trend in FY 2010-11 and the overall sentiment remains positive. The profit margins of Nitro Aromatics are under pressure. SIL has planned to get into the downstream products and also to adopt energy conservation measures to improve the bottom line. Accordingly, all steps are taken in this aspect. Focus continues to remain on improving the efficiency of the present Units. The Company has several future Projects in hand and is committed to complete those projects as soon as possible. It has invested a large sum in its future Projects.
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The Company essentially manufactures Nitro Aromatics and
uses Benzene, Sulphuric Acid(hence sulphur), Chlorine, as major feedstock.
Benzene is available in
FIXED ASSETS
WEBSITE DETAILS
PROFILE
Subject,
Quality is their Passion and Continuous Improvement is a Way of
Life. Subject specialises in manufacture of Chlorination and
Nitration processed Benzene based Products and aims to become the largest
producer of Benzene based Chemical Intermediates in the world.
With
a focus on the long term, they provide superior quality and service that will
make customers want to keep doing business with them. By fostering a
culture that emphasizes ethical business behavior, strong corporate
governance, community involvement and safety in all that they do, they
strive each and every day to earn the trust of their customers, investors,
employees, suppliers and neighbors. Their many stakeholders can feel
confident about their association with Seya.
While
offering many standard chemicals and specialty compounds, Subject also
provides specially modified or custom formulations.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 52.68 |
|
|
1 |
Rs. 85.12 |
|
Euro |
1 |
Rs. 69.38 |
INFORMATION DETAILS
|
Information
Gathered by : |
-- |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
28 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.