MIRA INFORM REPORT

 

 

Report Date :

11.06.2012

 

IDENTIFICATION DETAILS

 

Name :

FLINT GROUP INDIA PRIVATE LIMITED

 

 

Formerly Known As :

INCOWAX PRIVATE LIMITED

 

 

Registered Office :

No. 47-D, Bommasandra Industrial Area, Bangalore – 560 099, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

06.01.1989

 

 

Com. Reg. No.:

08-009759

 

 

Capital Investment / Paid-up Capital :

Rs. 24.300 Millions

 

 

CIN No.:

[Company Identification No.]

U02422KA1989PTC009759

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRI00223G

 

 

PAN No.:

[Permanent Account No.]

AAACI5639L

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Printing Ink.

 

 

No. of Employees :

100 (In Office 30 and In Factory 70) (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (11)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. The management of the company has not filed any financials of the company with the government department after the year 2007. This shows poor corporate governance record. Also, the management denied to disclose any information of the company. Payments are unknown.

 

The company can be considered for business dealing on a secured 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

 

 

INFORMATION DECLINED BY

 

Management non co-operative

 

 

LOCATIONS

 

Registered Office/Factory :

No. 47-D, Bommasandra Industrial Area, Bangalore – 560 099, Karnataka, India

Tel. No.:

91-80-27832420

Fax No.:

91-80-27832419

E-Mail :

m.rajnarayanan@ip.flintgrp.com

o.geetha@ip.flintgrp.com

j.sridhar@ip.flintgrp.com

Website :

http://www.flintgrp.com

Area :

6000 Sq. ft.

Location :

Owned

 

 

Factory :

Shiv Industrial Infrastructure, District Vadodara-391775, Gujarat, India

 

 

DIRECTORS

 

AS ON 29.09.2007

 

Name :

Mr. Michael Jerome Gannon

Designation :

Director

Address :

39, Gunther Saline, Michigan, USA

Date of Birth/Age :

28.08.1955

Date of Appointment :

07.12.2005

 

 

Name :

Mr. K Srinivasan

Designation :

Managing Director

Address :

373, I Block, Koramangala, Bangalore – 560 036, Karnataka, India

Date of Birth/Age :

27.11.1955

Date of Appointment :

01.07.1987

 

 

Name :

Mr. Johnson Damian Terrance

Designation :

Director

Address :

81, Nicholas Street, Ashburton, Melbourne, Australia 

Date of Birth/Age :

05.10.1956

Date of Appointment :

03.03.2003

 

 

Name :

Mr. R Krishnamoorthy

Designation :

Director

Address :

No. 20, Chandragiri Colony, Trimulgery, Secunderabad – 500 015, Andhra Pradesh, India

 

 

KEY EXECUTIVES

 

Name :

Mr. Sridhar J

Designation :

Secretary

Address :

402, Manish Residency, 28th Main, J P Nagar, VI, Phase, Bangalore – 560 078, Karnataka, India

Date of Birth/Age :

24.12.1964

Date of Appointment :

29.07.1996

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2007

 

Names of Shareholders

No. of Shares

Flint Ink Mauritius Limited

2429990

Flint Ink Holdings Mauritius Limited 

10

TOTAL

2430000

 

AS ON 29.09.2007

 

Equity Shares Break Up

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 :

Manufacturer of Printing Ink.

 

PRODUCTION STATUS

 

(AS ON 31.03.2007)

Particulars

Unit

Installed Capacity

Actual Production

Printing Inks

Kgs

8392400

6525370

Thinner

NA

--

66301

Varnishes

Kgs

150000

33906

Others

NA

--

498371

 

 

GENERAL INFORMATION

 

No. of Employees :

100 (In Office 30 and In Factory 70) (Approximately)

 

 

Bankers :

Corporation Bank

Industrial Finance Branch, Indian Express Building, Queen’s Road, Bangalore – 560 001, Karnataka, India

 

 

Facilities :

Secured Loans

(AS ON 31.03.2007)

Rs. in millions

Term Loans

 

Cash Credit from a Bank

34.941

 

 

Total

34.941

 

Note

Secured by hypothecation of raw materials, stores and spares, finished goods, and book debts and further secured by first charge on Fixed Assets at Bangalore Factory.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountant

Address :

‘Mittal Tower’, 10th Floor, ‘C’ Wing, 47/6, M G Road, Bangalore – 560 001, Karnataka, India

 

 

Fellow Subsidiaries :

·         Flint Ink Australia Pty Limited

·         Flint Ink (UK) Limited – Wolverhampton

·         Flint Ink (UK) Limited – Ruabon

·         Flint Ink Helmond BVHelmond Thailand

·         Flint Schimdt – Netherlands

·         Flint Schimdt – Wein

·         Flint Ink’s Gravenzande BV America Flint

·         Schimdt – Frankfurt

·         Flint Ink (Beijing) Printing Ink Company Limited – China

·         Flint Ink NZ Limited – Auckland

·         Flint Ink Corporation – USA

·         Arrow Head Trading

·         CRR Pigments

·         BASF Industries Private Limited

 

 

Holding Company :

·         Flint Ink Mauritius Limited

·         Flint Ink Corporation, USA

 

 

Ultimate Holding Company :

CVC Fund

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2007

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

3000000

Equity Shares

Rs.10/- each

Rs. 30.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

2430000

Equity Shares

Rs.10/- each

Rs. 24.300 millions

 

 

 

 

 

 

Notes

 

Of the above

 

·         2429999 shares held by the Holding Company Flint Group (Mauritius) Limited

·         647733 Equity Shares allotted as fully paid-up Bonus Shares by capitalization of General Reserve.

·         CVC Fund, Luxemburg, is the Ultimate Holding Company

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

24.300

24.300

24.300

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

381.693

337.698

297.726

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

405.993

361.998

322.026

LOAN FUNDS

 

 

 

1] Secured Loans

34.941

10.118

20.170

2] Unsecured Loans

11.483

13.331

10.853

TOTAL BORROWING

46.424

23.449

31.023

DEFERRED TAX LIABILITIES

16.888

11.928

9.370

 

 

 

 

TOTAL

469.305

397.375

362.419

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

147.522

140.229

141.954

Capital work-in-progress

4.756

6.682

0.463

 

 

 

 

INVESTMENT

0.080

0.080

0.080

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

185.622

149.486

154.796

 

Sundry Debtors

262.317

212.839

155.936

 

Cash & Bank Balances

3.251

6.866

23.314

 

Other Current Assets

0.022

0.004

0.442

 

Loans & Advances

50.108

36.334

24.721

Total Current Assets

501.320

405.529

359.209

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Current Liabilities

177.733

142.519

127.371

 

Provisions

6.640

12.626

11.916

Total Current Liabilities

184.373

155.145

139.287

Net Current Assets

316.947

250.384

219.922

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

469.305

397.375

362.419

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2007

31.03.2006

31.03.2005

 

SALES

 

 

 

 

 

Income

959.605

715.106

472.417

 

 

Other Income

16.506

11.861

6.376

 

 

TOTAL                                     (A)

976.111

726.967

478.793

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials

774.948

570.232

351.057

 

 

Manufacturing and Other Expenses

127.337

94.967

75.029

 

 

TOTAL                                     (B)

902.285

665.199

426.086

 

 

 

 

 

Less

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

73.826

61.768

52.707

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

6.833

4.571

2.207

 

 

 

 

 

 

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

66.993

57.197

50.500

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

7.888

7.667

3.827

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

59.105

49.530

46.673

 

 

 

 

 

Less

TAX                                                                  (H)

15.111

9.558

5.676

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

43.994

39.972

40.997

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

EOB value of Exports

117.627

107.107

NA

 

 

Freight and Insurance

2.600

2.436

NA

 

TOTAL EARNINGS

120.227

109.543

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

18.10

16.45

16.87

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)

4.51

5.50

8.56

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

6.16

6.93

9.88

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

9.11

9.08

9.31

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.15

0.14

0.14

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.57

0.49

0.53

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.72

2.61

2.58

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check List by Info Agents

Available in Report (Yes / No)

1.       Year of Establishment

Yes

2.       Locality of the firm

Yes

3.       Constructions of the firm

Yes

4.       Premises details

Yes

5.       Type of Business

Yes

6.       Line of Business

Yes

7.       Promoter’s background

Yes

8.       No. of Employees

Yes

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

Yes

17.   Major suppliers

No

18.   Major customers

No

19.   Payments terms

No

20.   Export / Import details

Yes

21.   Market information

------

22.   Litigations that the firm / promoter involved

------

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

No

30.   Major Shareholders, if available

Yes

 

 

 

FINANCIAL RESULTS

 

The Profit Before tax have increased from Rs.49.53 millions to Rs.59.24 millions during the year, representing a growth of about 20%. The earnings per share work out Rs.18.16 on a share capital of Rs.24 Millions.

 

PERFORMANCE REVIEW

 

The increase in the crude oil prices during the 1st half of the financial year had a significant impact on the prices of the raw material that went up substantially. Despite the fact that they could get a marginal price increase in the finished products, they could not pass on the entire increase in the raw material cost due to market condition on prices. This has resulted in reduction of margins. They achieved a growth of 35% in the sale value, achieving sale of Rs.1087 million as against sale of Rs.808 million in the last year.

 

However the company’s effort in reformulation of News Black, continued efforts in cost savings, manufacturing optimization, and standardization of inks has ensured in achieving a good profitability.

 

During the year the company has stabilized its new paste ink facility set up at Savli for the manufacture of News inks.

 

PROSPECTS FOR THE CURRENT YEAR

 

The packaging industry is growing at over 20%. With a significant foray by consumer Giants like ITC, Reliance retail and entry of MNC companies in retailing and consumer products the demand for printing inks is expected to further increase. With the focus also spreading to towns, semi urban and rural markets would ensure a good demand for the Company’s products.

 

With New players coming in, expansion by existing print houses and consolidation of new print houses the demand for News ink is also increasing. With the print houses going in for more color prints gives good opportunity for the company to establish, being one of the biggest player in the world in this segment. The company with the Brand Value and product strength of its parent would focus in positioning the products against the competitors.   

 

 

CONTINGENT LIABILITIES

 

 

(AS ON 31.03.2007)

Rs. in millions

Bank Guarantees

14.752

Bills / Cheques discounted

4.246

Excise Duty matter under dispute and contested by the Company

0.933

Sales-Tax matter under dispute and contested by the Company 

2.593

TOTAL

22.524

 

FIXED ASSETS

 

·         Leasehold Land

·         Freehold Land

·         Buildings

·         Plant and Machinery

·         Research and Development Equipment

·         Data Processing Machines

·         Office Equipment

·         Furniture and Fixtures

·         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 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. 55.36

UK Pound

1

Rs. 85.63

Euro

1

Rs. 69.21

 

 

INFORMATION DETAILS

 

Information Gathered by :

SBA

 

 

Report Prepared by :

DPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

1

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

1

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

1

--RESERVES

1~10

--

--CREDIT LINES

1~10

--

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

11

 

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.