MIRA INFORM REPORT

 

 

Report Date :

28.12.2012

 

IDENTIFICATION DETAILS

 

Name :

KIM CHEMICALS LIMITED

 

 

Formerly Known As :

KIM CHEMICALS PRIVATE LIMITED

 

 

Registered Office :

Anant Building, Ground Floor, 213-A, Princess Street, Mumbai – 400002, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

24.03.1983

 

 

Com. Reg. No.:

11-029622

 

 

Capital Investment / Paid-up Capital :

Rs. 19.000 Millions

 

 

CIN No.:

[Company Identification No.]

U24110MH1983PLC029622

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Luxury, Toiletries, Baby and Pharmaceutical Products.

 

 

No. of Employees :

Information declined by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 127000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. Reserves 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 caution.

 

NOTES :

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

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON CO-OPERATIVE (91-22-27411075)

 

 

LOCATIONS

 

Registered Office :

Anant Building, Ground Floor, 213-A, Princess Street, Mumbai – 400002, Maharashtra, India

Tel. No.:

91-22-22018671/ 22017947/ 27411075

Fax No.:

91-22-22061840

E-Mail :

vaishali@kimchemicals.com

jbc@kimchemicals.com

bkc@kimchemicals.com

Website :

www.kimchemicals.com

 

 

Factory :

Plot G-13/16, M.I.D.C., Taloja – 410208, India

Telefax :

91-22-27411075

 

 

DIRECTORS

 

AS ON 29.09.2012

 

Name :

Mr. Bhagwan Chandnani

Designation :

Managing director

Address :

502, Tulip, 16th Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Appointment :

10.04.1991

DIN No.:

01879373

 

 

Name :

Mr. Mahesh Chandnani

Designation :

Director

Address :

502, Tulip, 16th Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Appointment :

19.04.1991

DIN No.:

02441029

 

 

Name :

Mr. Jayesh Bhagwan Chandnani

Designation :

Director

Address :

502, Tulip, 16th Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Appointment :

10.04.1991

DIN No.:

02410831

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2012

 

Names of Shareholders

 

No. of Shares

 

Bhagwan Chandnani

 

663800

Mahesh Chandnani

 

399400

Jayesh Bhagwan Chandnani

 

399400

Sangeeta B. Chandnani

 

237400

Ritika M. Chandnani

 

100000

Vinali J. Chandnani

 

100000

Total

 

1900000

 

 

AS ON 29.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Luxury, Toiletries, Baby and Pharmaceutical Products.

 

 

GENERAL INFORMATION

 

Suppliers :

Ø  Agile Softech

Ø  Ahlers India Private Limited

Ø  Atharva Logistics

Ø  Batliboi Impex Limited

Ø  Bombino Expree Private Limited

Ø  Jaihind Oil Mills

Ø  L.J. Kothari and Company

Ø  Maharshi Sales and Services

Ø  Motumal and Company

Ø  Nihal Marketing

Ø  Shiv Krupa Transport

Ø  Travelmart India Com. Private Limited

Ø  Ambika Packaging

Ø  Om Enterprises  

 

 

No. of Employees :

Information declined by management

 

 

Bankers :

Bank of Baroda, Princess Street Branch, Mulji Jetha Building,1st Floor, 185/187, Princess Street, Mumbai – 400002, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

Bank Overdraft

0.470

1.161

Car loan

(0.100)

0.000

HDFC Car loan

0.309

0.309

Packing Credit

6.238

4.900

Total

6.917

6.370

 

 

Unsecured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

Bhagwan Chandnani

1.020

1.136

Jayesh Bhagwan Chandnani

0.141

0.000

Mahesh Chandnani

0.607

0.000

Ritika M. Chandnani

(0.052)

0.009

Vinali J. Chandnani

(0.002)

0.059

Kim Chemicals

7.335

0.000

Total

9.049

1.204

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

L.J. Kothari and Company

Chartered Accountants

Address :

Gandhi Mansion, 3rd Floor, New Silk Bazar, Opposite Kalbadevi Head Post Office, Mumbai – 400002, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AABPK8642B

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,250,000

Equity Shares

Rs. 10/- each

Rs. 22.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,900,000

Equity Shares

Rs. 10/- each

Rs. 19.000 Millions

 

 

 

 

 

 

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

 

Particulars

31.03.2012

 

Number

Amount

Number of shares at the beginning

1900000

19.000

Add/ (Less)

 

 

Issue during the period

--

--

Buyback during the period

--

--

Redemption during the period

--

--

Conversion during the period

--

--

At the end of the reporting period

1900000

19.000

 

 

Shareholders holding more than five percent of holding

 

Particulars

31.03.2012

 

Number

% of Holding

Bhagwan Chandnani

663800

34.94

Sangeeta B. Chandnani

237400

12.50

Mahesh Chandnani

399400

21.02

Ritika M. Chandnani

100000

5.26

Jayesh Bhagwan Chandnani

399400

21.02

Vinali J. Chandnani

100000

5.26

Total Equity

1900000

100.00

 

 

The company has a single class of equity shares having a face value of Rs. 10/- per share. The shareholders are entitled to receive dividend on their shares and when the same is declared by the company. Each holders of the equity share is entitled to one vote per share. In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

19.000

19.000

19.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

12.843

11.755

10.652

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

31.843

30.755

29.652

LOAN FUNDS

 

 

 

1] Secured Loans

6.916

6.370

5.545

2] Unsecured Loans

9.049

1.204

0.051

TOTAL BORROWING

15.965

7.574

5.596

DEFERRED TAX LIABILITIES

0.490

0.490

0.490

 

 

 

 

TOTAL

48.298

38.819

35.738

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

9.638

10.939

12.617

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
39.457

34.346

17.243

 

Sundry Debtors
0.000

0.000

9.205

 

Cash & Bank Balances
5.762

0.857

1.074

 

Other Current Assets
2.465

6.914

0.000

 

Loans & Advances
13.232

16.359

19.183

Total Current Assets
60.916

58.476

46.705

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
20.901

29.187

20.434

 

Other Current Liabilities
0.772

0.772

1.904

 

Provisions
0.583

0.637

1.253

Total Current Liabilities
22.256

30.596

23.591

Net Current Assets
38.660

27.880

23.114

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.007

 

 

 

 

TOTAL

48.298

38.819

35.738

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

130.942

112.089

159.025

 

 

Other Income

3.052

4.494

6.705

 

 

TOTAL                                     (A)

133.994

116.583

165.730

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of operations

108.287

106.734

 

 

 

Changes in inventories of finished goods, work-in-progress

(5.112)

(17.103)

 

 

 

Manufacturing and Other Expenses

25.586

21.381

 

 

 

TOTAL                                     (B)

128.761

111.012

158.686

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

5.233

5.571

7.044

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

2.059

2.053

1.924

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

3.174

3.518

5.120

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1.503

1.775

1.699

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

1.671

1.743

3.421

 

 

 

 

 

Less

TAX                                                                  (H)

0.583

0.637

1.005

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1.088

1.106

2.416

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

59.077

102.339

153.087

 

 

 

 

 

 

CIF VALUE OF IMPORTS

23.731

78.425

75.353

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.57

0.58

1.27

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
0.81

0.95

1.46

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.28

1.56

2.15

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.37

2.51

5.77

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.05

0.06

0.12

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.20

1.24

0.98

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.74

1.91

1.98

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2012

31.03.2011

 

31.03.2010

 

(Rs. In Millions)

Sundry creditors for expenses
3.144

Sundry creditors for suppliers

7.832

 

 

Sundry creditors for import

9.925

 

 

Total
20.901

29.187

20.434

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

No

17]

Major suppliers

Yes

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

FINANCIAL RESULTS:

 

The company has earned a profit of Rs. 1.671 Millions, this year, after depreciation, against Profit of Rs. 1.743 Millions last year. Their turnover this year has increased to Rs. 130.900 Millions against Rs. 112.000 Millions in last year.  

 

 

FIXED ASSETS:

 

Ø  Land

Ø  Building

Ø  Machinery

Ø  Computer

Ø  Lab Equipments

Ø  Electrical Installation

Ø  Furniture

Ø  Motor Car

Ø  Office Equipment

Ø  Air Conditioner

 

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 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 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 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. 54.85

UK Pound

1

Rs. 88.55

Euro

1

Rs. 72.63

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

29

 

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.