MIRA
INFORM REPORT
|
Report Date : |
15.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
CHEMBOND
CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
Plot No. EL-71, TTC Industrial Area, M.I.D.C. Electronic,
Mahape, Thane – 400710, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
22.03.1975 |
|
|
|
|
Com. Reg. No.: |
11-018235 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.63.604 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24100MH1975PLC018235 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMC10906A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACC5467A |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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|
|
|
Line of Business
: |
Manufacturing and Marketing of Chemicals. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1600000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of the Chembond Group. It is a well established
company having fine track. Financial position of the company appears to be
sound. Trade relations are reported as trustworthy. Business is active.
Payments are reported to regular and as per commitments. The company can be considered good 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating = A |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
16.05.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating = A1 |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
16.05.2012 |
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.
LOCATIONS
|
Registered / Corporate Office : |
Plot No. EL-71, TTC Industrial Area, M.I.D.C. Electronic,
Mahape, Thane – 400710, |
|
Tel. No.: |
91-22-27618799/ 66143000 |
|
Fax No.: |
91-22-27681294 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Plot No. E-6/3 and 6/4, MIDC Estate, Tarapur, Boisar –
401506, District Thane, |
|
Tel. No.: |
91-252-22572615 |
|
Fax No.: |
91-252-22571172 |
|
|
|
|
Factory 2: |
Plot T / 129, MIDC Tarapur, District Thane, |
|
|
|
|
Factory 3: |
Khasara 177/2, Village Theda, PO Lodhimajra, Tehsil
Nalagarh, Baddi District, Solan – 174101, |
|
Tel. No.: |
91-9218444550 |
|
|
|
|
Factory 4: |
Near Remana Golai, Opposite Rajesh Chemicals, Balasore –
756001, |
|
Tel. No.: |
91-9338013422 |
|
|
|
|
Factory 5: |
5/5, 5/6B, |
|
Tel. No.: |
91-44-26801331 / 64552655 |
|
|
|
|
Factory 6: |
404/B/P-1, Village Dudhawada, |
|
Tel. No.: |
91-2662273778 / 273181 |
|
Fax No.: |
91-2662273781 |
|
|
|
|
Branch Office : |
Located at · Mumbai · Ahmedabad ·
· Kolkata ·
Chennai |
DIRECTORS
As on 31.03.2012
|
Name : |
Dr. Vinod D. Shah |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
Doctorate in Chemical
Engineering |
|
|
|
|
Name : |
Mr. Sameer V. Shah |
|
Designation : |
Vice Chairman and
Executive Director |
|
|
|
|
Name : |
Mr. Nirmal V. Shah |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. Ashwin R.
Nagarwadia |
|
Designation : |
Director |
|
Date of Birth/Age : |
75 years |
|
Qualification : |
B.E. Mechanical |
|
|
|
|
Name : |
Mr. Perviz H.
Dastur |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jayant S.
Vasani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jawahar I.
Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahendra K.
Ghelani |
|
Designation : |
Director |
|
Date of Birth/Age : |
67 years |
|
Qualification : |
Advocate Solicitor and Notary |
|
|
|
|
Name : |
Mr. O. P. Malhotra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sushil U. Lakhani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Omkar Mahamukar |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category
of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3,649,896 |
57.38 |
|
|
601,418 |
9.46 |
|
|
4,251,314 |
66.84 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
4,251,314 |
66.84 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
23,800 |
0.37 |
|
|
23,800 |
0.37 |
|
|
|
|
|
|
525,819 |
8.27 |
|
|
|
|
|
|
587,197 |
9.23 |
|
|
946,382 |
14.88 |
|
|
25,900 |
0.41 |
|
|
25,900 |
0.41 |
|
|
2,085,298 |
32.79 |
|
Total Public shareholding (B) |
2,109,098 |
33.16 |
|
Total (A)+(B) |
6,360,412 |
100.00 |
|
(C) Shares held by Custodians and against which
Depository Receipts have been issued |
|
|
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
6,360,412 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Chemicals. |
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|
Products : |
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Actual
Production |
|
Liquid |
KL/MT |
15052 |
|
Powder |
KL/MT |
3416 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Kastury and Talati Chartered Accountants, |
|
Address : |
Mumbai, |
|
|
|
|
Subsidiary
Companies : |
· Chembond Ashland Water Technologies Limited · Protochem Industries Private Limited · H2O Innovation India Limited |
|
|
|
|
Joint Venture : |
Henkel Chembond Surface Technologies Limited |
|
|
|
|
Associates : |
· Chembond Distribution Limited · Chembond Enzyme Company Limited · Chembond Habio Bioengineering Company Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6360412 |
Equity Shares |
Rs.10/- each |
Rs.63.604
millions |
|
|
|
|
|
A. Shares issued for consideration
other than cash and bonus shares issued:
Out of the issued, subscribed and paid up share capital, during the last five years
i. 1,90,206 (1,90,206) Equity Shares of Rs.10/- each have been issued for consideration other than cash
ii. 31,80,206 (31,80,206) Equity Shares of Rs.10/- each have been issued as fully paid Bonus Shares by way of capitalization of Reserves and Surplus
B. Details of
Shareholders holding more than 5% Shares
|
Name of the
Shareholder |
No of Shares |
% held |
|
Dr. Vinod D. Shah |
9,04,847 |
14.23 |
|
Padma V. Shah |
7,47,360 |
11.75 |
|
Visan Holding & Financial Services Private Limited |
4,75,121 |
7.47 |
|
Ajay Sheth |
3,43,144 |
5.39 |
|
Quest Investment Advisors Private Limited |
3,42,492 |
5.38 |
|
Ashwin R. Nagarwadia |
3,40,932 |
5.36 |
C. Terms/Rights
attached to Equity Shares
The Company has only one class of Equity Shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the 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 |
63.604 |
63.604 |
63.604 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Convertible Warrants money pending allotment |
13.798 |
0.000 |
0.000 |
|
|
4] Reserves & Surplus |
334.103 |
280.408 |
229.924 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
411.505 |
344.012 |
293.528 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
73.500 |
87.152 |
171.194 |
|
|
2] Unsecured Loans |
99.917 |
43.029 |
35.062 |
|
|
TOTAL BORROWING |
173.417 |
130.181 |
206.256 |
|
|
DEFERRED TAX LIABILITIES |
25.267 |
21.985 |
19.414 |
|
|
|
|
|
|
|
|
TOTAL |
610.189 |
496.178 |
519.198 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
288.172 |
211.424 |
208.841 |
|
|
Capital work-in-progress |
50.350 |
2.660 |
0.771 |
|
|
|
|
|
|
|
|
INVESTMENT |
143.825 |
138.493 |
133.453 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
215.300
|
177.998 |
159.207
|
|
|
Sundry Debtors |
224.776
|
229.130 |
244.342
|
|
|
Cash & Bank Balances |
30.457
|
6.473 |
9.108
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
20.240
|
14.872 |
18.617
|
|
Total
Current Assets |
490.773
|
428.473 |
431.274 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
261.561
|
203.291 |
235.714
|
|
|
Other Current Liabilities |
78.601
|
59.492 |
0.274
|
|
|
Provisions |
22.769
|
22.089 |
19.153
|
|
Total
Current Liabilities |
362.931
|
284.872 |
255.141 |
|
|
Net Current Assets |
127.842
|
143.601 |
176.133
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
610.189 |
496.178 |
519.198 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1519.721 |
1322.447 |
1144.158 |
|
|
|
Other Income |
57.043 |
56.109 |
31.506 |
|
|
|
TOTAL (A) |
1576.764 |
1378.556 |
1175.664 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1147.159 |
|
|
|
|
|
Purchases of stock-in-trade |
117.113 |
89.618 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and traded goods |
(3.127) |
(0.825) |
1075.957 |
|
|
|
Employee benefits expense |
101.081 |
78.355 |
|
|
|
|
Other expenses |
96.800 |
96.506 |
|
|
|
|
TOTAL (B) |
1459.026 |
1260.096 |
1075.957 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
117.738 |
118.460 |
99.707 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
23.781 |
25.010 |
23.829 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
93.957 |
93.450 |
75.878 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
13.853 |
11.875 |
11.143 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
80.104 |
81.575 |
64.735 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
13.68 |
17.025 |
13.005 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
66.424 |
64.550 |
51.730 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
231.432 |
187.259 |
153.461 |
|
|
|
|
|
|
|
|
|
Add |
Transfer from Revaluation Reserve |
0.189 |
0.189 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserves |
7.000 |
6.500 |
5.500 |
|
|
|
Set off of Dividend Tax in respect of dividend from Subsidiary Company |
(2.218) |
(1.827) |
(1.178) |
|
|
|
Proposed Dividend |
14.947 |
13.675 |
11.131 |
|
|
|
Tax on Proposed Dividend |
0.000 |
2.218 |
1.849 |
|
|
|
Dividend on Shares issued on Amalgamation |
0.000 |
0.000 |
0.631 |
|
|
BALANCE CARRIED
TO THE B/S |
278.316 |
231.432 |
187.258 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
13.626 |
29.654 |
12.187 |
|
|
|
Commission Earnings |
0.000 |
0.003 |
0.031 |
|
|
TOTAL EARNINGS |
13.626 |
29.657 |
12.218 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
247.508 |
258.717 |
153.720 |
|
|
TOTAL IMPORTS |
247.508 |
258.717 |
153.720 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.44 |
10.15 |
8.13 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
448.260 |
|
Total Expenditure |
|
|
430.210 |
|
PBIDT (Excl
OI) |
|
|
18.050 |
|
Other Income |
|
|
0.000 |
|
Operating
Profit |
|
|
18.050 |
|
Interest |
|
|
6.190 |
|
Exceptional
Items |
|
|
0.000 |
|
PBDT |
|
|
11.860 |
|
Depreciation |
|
|
3.450 |
|
Profit
Before Tax |
|
|
8.420 |
|
Tax |
|
|
2.710 |
|
Reported PAT |
|
|
5.710 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
5.710 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.21
|
4.68 |
4.40
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.27
|
6.17 |
5.65
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.28
|
12.75 |
10.11
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.24 |
0.22
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.30
|
1.21 |
1.57
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35
|
1.50 |
1.69
|
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
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 |
Yes |
|
17] |
Major suppliers |
No |
|
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 |
No |
|
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 |
Yes |
PERFORMANCE REVIEW
The Company has recorded an increase in Sales of 14.92% with an increase in profit after tax (PAT) by 2.91%. The Earning per Share (EPS) increased to Rs.1.044 Millions as at 31st March, 2012 from Rs.1.015 Millions at the end of the previous fiscal year. A separate section on Management Discussion and Analysis follows in this annual report where in the Company Performance, Industry Environment, Economy, and the other aspects of the company’s business are highlighted.
MANAGEMENT DISCUSSION
AND ANALYSIS
GENERAL REVIEW
During the year, the Company has achieved a growth of around 15% in sales on a standalone basis and 10% on a consolidated basis. In a tough pricing environment compounded by exchange rate fluctuations, the Company was able to fairly hold on to margins.
FINANCIAL AND
OPERATIONAL PERFORMANCE
STANDALONE:
The performance of Chembond in 2011 -12 was mixed. While the
Company was able to increase its turnover by 15% in a poor economy, the profits
were lower. This was mainly due to aggressive investments in the future of the
Company in the newer product lines for animal health, bioremediation, and in
the expansion of construction chemicals and coatings. The year ended March,
2012 also saw investments in the new facilities for coatings at Dudhwada and at
PERFORMANCE OF
BUSINESS AREAS
The Company is in the business of manufacturing of specialty
chemicals and offers a wide range of products for diverse industrial
applications. The Company maintains its head office in Mahape, Navi Mumbai,
CONSTRUCTION
CHEMICALS
During the year, the Company has further stabilized and consolidated its position in the construction chemicals field. The products and solutions offered by the Company are categorized into concrete admixtures, waterproofing, concrete repair, grout and anchor, surface treatment, joint sealant, tiling and cementitous flooring. Several new products and technologies were added into each of the product groups thereby effectively delivering product line extensions. The distribution channel was strengthened and expanded increasing the reach of the company’s products.
The year also saw significant investments going into further equipping the R and D and product development laboratory, enhancing the company’s visibility and in personnel. The business revenue grew by 60% during the year.
With the developments of the past year and the initiatives planned for execution in the forthcoming period, the business is adequately confident of delivering a consistently good performance.
COMMENTS ON
PERFORMANCE OF JOINT VENTURES AND SUBSIDIARIES
CHEMBOND ASHLAND
WATER TECHNOLOGIES LIMITED
The Company owns 55% equity with Ashland Inc,
HENKEL CHEMBOND
SURFACE TECHNOLOGIES LIMITED
Chembond has been a market leader in the metal treatment
industry since the inception of the Company and today Henkel Chembond continues
to use the same philosophy of innovative products and sustainable solutions,
including environment friendly anti-corrosion coatings and energy-saving
solutions. Henkel Chembond’s facilities in
H2O INNOVATION (
H2O Innovation India Limited was formed in April 2010 as a joint venture between Chembond Chemicals Limited, India and H2O Innovation Inc, Canada, to engineer, manufacture and supply state-of-the-art custom built technological solutions to in-take water treatment, process water treatment and effluent water treatment systems, all backed by complete operations and maintenance services. Media filters, Membrane based systems (Microfiltration, Ultrafiltration and Reverse Osmosis), Resin based systems and Waste water treatment systems form the technology offering of H2O Innovation India. This business is closely aligned with their objective of providing total water management solutions.
The Financial year 2011-2012 has been extremely challenging as global economy which has been losing steam over the year 2011, has brought in lot of uncertainty over it’s growth prospects in 2012. Core sectors in the country which are of key importance to the business have also faced multiple challenges due to policy delays. This business environment compounded by domestic competition has compelled then to book orders at lower margins in their efforts to maintain their growth targets. The company is currently executing domestic as well as export orders.
With their endeavor to become a profitable water treatment company with operational excellence, they have embarked upon a strategic plan and a vigorous implementation plan focused around improvement in execution and operational efficiency, considering people as their most important asset is under execution.
With identified key strategic initiatives the company is well positioned to chart out it’s course on the growth trajectory, creating value for all it’s stakeholders over the medium term and more so on long term, as good business opportunities are expected to prevail in Financial Year 2012-2013.
COMPANY’S OBJECTIVES
AND POLICIES
Chembond has an objective of being the “supplier of choice” to its diverse customers. In orders to achieve this objective, all manufacturing sites and functions have targets on customer service, among others. Chembond aims to continually improve these targets through its Quality Management Systems.
The Company follows an integrated SHE-Q Management System under which, the Tarapur plants are ISO 9001, ISO 14001, OHSAS 18001 and ISO/TS 16949 certified. The corporate office and the Baddi and Dudhwada plants are ISO 9001 certified and the Company is in process to obtain ISO 14001 and OHSAS 18001 for its Baddi and Dudhwada Plant.
Chembond also has a Safety, Health, and Environment objective of having zero lost time due to accidents across the organization. Everyone at Chembond is committed to protect the environment by controlling the interaction with environment by process control, systematic waste management, energy conservation, and emission control.
OPERATIONS
The Chembond Group has manufacturing units at Tarapur, Mahape, Dudhwada, Baddi, Chennai and Balasore. The overall manufacturing capacity is 4000 MT/Month with a flexibility of wide range of product categories. Around 300 people are engaged in manufacturing of metal treatment chemicals, water treatment chemicals, coatings, construction chemicals, and biotech products. The manufacturing operations consists of production, in-bound and outbound logistics, quality control and assurance, plant engineering, HR, ADMN, IT and factory accounts. The team is energetic, vibrant and competent to understand and fulfill customer requirements. The team is also well equipped with best manufacturing practices to deliver the right quality, in the right quantity at the right time. They continuously upgrade their knowledge, skills and facilities to remain the supplier of choice in the highly competitive global market
OUTLOOK
All product ranges offered by the Company and its joint
ventures or subsidiaries are technologically in the sunrise or growth phase
catering to high growth industries. Be it infrastructure, automotive, refining,
power, steel, defense, textiles, agriculture, engineering, mass transit, or
process industry, the Chembond Group has innovative, value effective products
for the industry. Accelerated reforms and improved governance standards would
spur economic growth in
CONTINGENT LIABILITIES:
(Rs. In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
Outstanding L.C and Bank Guarantees issued by Bankers |
15.366 |
10.072 |
|
Corporate Guarantee given to Bank of India by the company on behalf of Subsidiaries Chembond Ashland Water Technologies Limited and H2O Innovation India Limited |
90.000 |
90.000 |
|
Income Tax matter under appeal |
0.135 |
0.135 |
|
Balance Payment for Capital Commitments |
0.857 |
0.413 |
|
Claim against the Company not acknowledged as debts |
0.960 |
0.960 |
RESULTS FOR THE
QUARTER ENDED 30TH JUNE, 2012
Rs. In Millions
|
|
|
Standalone |
||
|
Sr. No |
Particulars |
Quarter Ended 30.06.2012 |
||
|
|
|
Unaudited |
||
|
1 |
Income From
Operations |
|
||
|
|
a. Net Sales/Income From Operations |
439.692 |
||
|
|
(Net of Excise Duty) |
|
||
|
|
b. Other Operating Income |
8.562 |
||
|
|
Total Income from
Operations (Net) |
448.255 |
||
|
2 |
Expenditure |
|
||
|
|
a. Cost of material Consumed |
346.806 |
||
|
|
b. Purchase of Stock-in trade |
33.879 |
||
|
|
c. Changes in inventory of finished Goods, work- |
(7.832) |
||
|
|
in-progress and Stock-in-trade |
|
||
|
|
d. Employees Benefit Expenses |
36.576 |
||
|
|
e. Depreciation and Amortisation Expenses |
3.450 |
||
|
|
f. Other expenses |
20.767 |
||
|
|
Total Expenses |
433.647 |
||
|
3 |
Profit from Operations
before Other Income, Interest and Exceptional Items |
14.608 |
||
|
4 |
Other Income |
- |
||
|
5 |
Profit from
ordinary activities before finance cost & exceptional items |
14.608 |
||
|
6 |
Finance Costs |
6.186 |
||
|
7 |
Profit from ordinary
activities after finance costs & exceptional items |
8.422 |
||
|
8 |
Exceptional items |
- |
||
|
9 |
Profit from
ordinary activities before tax |
8.422 |
||
|
10 |
Tax Expense |
2.710 |
||
|
11 |
Net Profit from
ordinary activity after tax |
5.712 |
||
|
12 |
Extraordinary Items |
- |
||
|
13 |
Net Profit After
Tax |
5.712 |
||
|
14 |
Paid-up equity share capital (face value of Rs 10 per share) |
63.604 |
||
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year |
|
||
|
16 |
Earning Per Share ( of Rs.10 each) (not annualised) |
|
||
|
|
Basic & Diluted EPS |
0.90 |
||
|
|
|
|
||
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
20 |
Public Shareholding |
|
|
|
|
|
- No. of shares |
2109098 |
|
|
|
|
- Percentage of shareholding |
33.16% |
|
|
|
21 |
Promoter &
Promoter Group Shareholding a)
Pledged/Encumbered |
|
|
|
|
|
- No. of shares |
Nil |
|
|
|
|
- Percentage of shareholding(as a % of the total |
|
|
|
|
|
shareholding of promoter and promoter group) |
|
|
|
|
|
|
Nil |
|
|
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
Nil |
|
|
|
|
|
|
|
|
|
|
b)Non-encumbered |
|
|
|
|
|
- No. of shares |
4251314 |
|
|
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
100.00% |
|
|
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
66.84% |
|
|
|
|
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
|
|
Pending at the Beginning of the Quarter |
Nil |
|
|
|
|
Received During the Quarter |
3 |
|
|
|
|
Disposed of during the Quarter |
3 |
|
|
|
|
Remaining Unresolved at the End of Quarter |
Nil |
|
|
NOTES:
1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 28th July, 2012.
2. Statutory Auditors have carried out a Limited Review of the Accounts for the Quarter Ended 30th June, 2012 as required by clause 41 of the Listing Agreement.
3. Previous quarter figures have been regrouped or reallocated wherever necessary to conform to this quarter classification.
4. The company operates in a single business segment, namely "Specialty Chemicals", therefore the information pursuant to AS - 17 is not applicable.
5. Statement of Assets and Liabilites
|
|
Stand Alone Audited |
|
Particulars |
As at 31.03.2012 |
|
Shareholder's Funds |
|
|
Share Capital |
636.04 |
|
Reserves and Surplus |
3,341.02 |
|
Convertible Warrnat money pending allotments |
137.98 |
|
Total |
4,115.04 |
|
|
|
|
Non-Current
Liabilities |
|
|
Long-term borrowings |
935.16 |
|
Deferred tax liabilities (Net) |
252.67 |
|
Long-term provisions |
78.22 |
|
Total |
1,266.05 |
|
|
|
|
Current Liabilities |
|
|
Short-term borrowings |
799.01 |
|
Trade payables |
2,615.61 |
|
Other current liabilities |
786.01 |
|
Short-term provisions |
149.47 |
|
Total |
4,350.10 |
|
Total |
9,731.19 |
|
|
|
|
ASSETS |
|
|
Non-Current Assets |
|
|
Fixed Assets |
|
|
Tangible Assets |
2,791.88 |
|
Intangible Assets |
89.84 |
|
Capital Work-in-Progress |
503.50 |
|
|
3,385.22 |
|
Non Current Investments |
1,437.74 |
|
Long Term Loans & Advances |
106.75 |
|
|
1,544.48 |
|
Current assets |
|
|
Current Investment |
0.51 |
|
Inventories |
2,153.00 |
|
Trade Receivables |
2,247.76 |
|
Cash and Cash Equivalents |
304.57 |
|
Short Term Loans and Advances |
95.64 |
|
Total |
4,801.49 |
|
Total |
9,731.19 |
FIXED ASSETS:
- Land
- Building
- Equipment and Machinery
- Computer
- Furniture and Fixtures
- Office Equipments
- Electric Fitting and Installation
- Vehicles
WEBSITE DETAILS
MILESTONE
Subject is a BSE listed company, established in 1975, with group sales of over Rs. 150.000 millions and 500 employees.
Subject manufactures Metal Treatment Chemicals and Water
Treatment Chemicals in joint ventures with global leaders
Subject also manufactures construction chemicals for the building construction and infrastructure sectors and high performance coatings for structural protection from corrosion, floors and walls in clean rooms and shop floors and building exteriors. Chembond`s newest project in biotechnology promises to improve industrial applications using the technology of the future.
Subject modern, well-equipped and multi-purpose
manufacturing and blending plants are located at Tarapur, Maharashtra; Baddi,
Himachal Pradesh and Dudhwada,
The Chembond Group companies include:
- Chembond Chemicals Limited
- Chembond Ashland Water Technologies Limited
- Henkel Chembond Surface Technologies Limited
- Chembond Enzymes Company Limited
- CCL Building Systems Limited
2010 Joint Venture
with H2O Innovation Inc,
2010 Plant at Sitarganj, Uttrakhand.
2008 Plant at
Dudhwada,
2006 Plant at Baddi, Himachal Pradesh.
2002
2002 Launch of environmental bio-products.
2001 Takeover of
Drewtreat Chemicals Limited and simultaneous Joint Venture with Ashland Inc,
for Water treatment chemicals.
1997 Joint Venture
with
1995 Chembond IPO, shares listed on the Bombay Stock Exchange.
1994 Technology
transfer agreement with
for the wire drawing industry. Diversification into manufacturing Anticorrosive coatings, Construction chemicals, Maintenance products and Water treatment plants.
1992 Expansion of facilities at Tarapur, doubling factory premises and substantially increasing the
production capacity.
1983 Diversification into manufacture of Cooling water treatment chemicals.
1979 Construction of a manufacturing plant at Tarapur.
1975 Incorporation of the company as Chembond Chemicals Private Limited on March 22, 1975.
Chemicals offered were for Pre-treatment of metallic surfaces.
PRESS RELEASE
Chembond Group to
feature latest advancement in Water Technology during Water Expo 6th Edition at
Chennai from 7th to 9th Feb'12
Mumbai, February 4, 2012 Chembond Group announces its participation in Water Expo at Chennai to exhibit their latest technology and innovation in Water treatment Chemicals and Equipments.
Chembond Ashland Water Technologies Limited, along with H2O Innovations India, will feature its newly developed range of solutions for Cooling Water Treatment, Effluent Treatment and Membrane Treatment. These innovative chemistries are specifically designed for use during the demanding packaging and heat treatment process to provide a superior end product.
Mr. Nirmal Shah, Director for Chembond Group Companies quotes," We have the latest technology and solutions which could help our clients and customers. Our international expertise and innovative range will provide right solutions to the problems faced. At the show we will be keen to meet our customers and prospects and update them about these developments."
Mr. Vinod Deshpande, COO for Chembond Ashland, states "Water is a universal solvent and also most effective coolant for industrial purpose. It's economical and apart from domestic consumption finds wide use in industrial applications. This show will act as a platform for us to share our expertise with our clients in providing right solutions".
In the international Conference program, schedule on 8th at the same venue, Mr. Deshpande will speak on Water and Waste Treatment Chemicals, where he will focus around some of the unique operations where water has to be conditioned with specific chemicals to improve plant reliability, conserve water and reduce the environmental impact.
Mr. Rajesh Mandal, Head Sales and Execution, for H2O
Innovation,
About Chembond
Ashland Water Technologies Limited:
Chembond Ashland Water Technologies Limited is
About H2O Innovation
India Limited
H2O Innovation India Limited is a joint venture between H2O
Innovation Inc. and Chembond Chemicals Limited of Mumbai, India providing water
treatment systems and operation and maintenance services to the Indian and Southeast
Asian industrial, commercial, and institutional markets, more specifically for
the production of high quality water for use in industrial processes, for
reclamation and reuse of industrial waste waters, as well as for treatment of
domestic waste waters. Headquartered in
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.54.73 |
|
|
1 |
Rs.88.61 |
|
Euro |
1 |
Rs.71.34 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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.