MIRA
INFORM REPORT
|
Report Date : |
11.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
LONSEN KIRI CHEMICAL INDUSTRIES LIMITED (w.e.f. 21.07.2008) |
|
|
|
|
Formerly Known
as : |
LONSEN KIRI CHEMICAL INDUSTRIES PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
7th Floor, Hasubhai Chambers, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2011 |
|
|
|
|
Date of
Incorporation : |
09.04.2008 |
|
|
|
|
Com. Reg. No.: |
04-053537 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1305.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U24114GJ2008PLC053537 |
|
|
|
|
PAN NO.: |
AABCL4527B |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHML01153F |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturing of Dye Stuffs. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 4700000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a joint venture between China based Zhejiang Lonsen and Kiri
Dyes and Chemicals India. It is an established company having a moderate track record. There
appears some accumulated loss during the current year recorded by the
company. However, networth of the company appears to be strong. Trade relations
are reported to be fair. Business is active. Payments are slow but correct. 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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = BB |
|
Rating Explanation |
Having moderate risk of default regarding a timely servicing of
financial obligation. |
|
Date |
August 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.
INFORMATION DECLINED BY
|
Name : |
Mr. Rajendra |
|
Designation : |
Account Department |
|
Contact No.: |
91-8511128016 |
|
Date : |
07.03.2013 |
LOCATIONS
|
Registered Office : |
7th Floor, Hasubhai Chambers, |
|
Tel. No.: |
91-79-26574371 / 72 / 73 |
|
Mobile No.: |
91-8511128016 (Mr. Rajendra) |
|
Fax No.: |
91-79-26574374 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office / Factory 1 : |
DYES DIVISION: Plot No 299/1/A and B, Near Water Tank, Phase-II, GIDC,
Vatva, Ahmedabad – 382 445, Gujarat, India |
|
Tel. No.: |
91-79-25894477, 40237444 |
|
Fax No.: |
91-79-25834960 |
|
|
|
|
Factory 2 : |
CHEMICALS DIVISION:
Plot No.498, 577/B, 584/B, 585, 586, 587, 588, 589 Village Dushwada,
Padra, Vadodara- 391 450, Gujarat, India |
|
Tel. No.: |
91-2662273724, 25 |
|
Fax No.: |
91-2662273726 |
|
|
|
|
Factory 3 : |
INTERMEDIATES
DIVISION: Plot No: 396 /399/403/404 EPC Canal Road, Village: Dudhwada , Ta: Padra, Dist: Vadodara :- 391450, Gujarat, India |
|
Tel. No.: |
91-2662273 444 |
|
Fax No.: |
91-2662273 444 |
DIRECTORS
As on 30.06.2012
|
Name : |
Mr. Manishkumar Pravinchandra Kiri |
|
Designation : |
Managing Director |
|
Address : |
53, Manekbaug society, |
|
Date of Birth/Age : |
26.12.1972 |
|
Date of Appointment : |
01.09.2008 |
|
DIN No.: |
00198284 |
|
|
|
|
Name : |
Mr. Pravinbhai Amratlal Kiri |
|
Designation : |
Director |
|
Address : |
53, Manekbaug society, |
|
Date of Birth/Age : |
01.11.1945 |
|
Date of Appointment : |
09.04.2008 |
|
DIN No.: |
00198275 |
|
|
|
|
Name : |
Mr. Yalin Chen Xu |
|
Designation : |
Additional Director |
|
Address : |
929, Bukt Timah Road, #03 -21, Singapore - 589642 |
|
Date of Birth/Age : |
19.09.1965 |
|
Date of Appointment : |
30.06.2012 |
|
DIN No.: |
03610804 |
|
|
|
|
Name : |
Mr. Sheng Chang |
|
Designation : |
Additional Director |
|
Address : |
No.20, Zheda road, |
|
Date of Birth/Age : |
17.03.1974 |
|
Date of Appointment : |
09.07.2008 |
|
DIN No.: |
02147753 |
|
|
|
|
Name : |
Mr. Han Gong |
|
Designation : |
Additional Director |
|
Address : |
8-701, No.567, East Jin, AN- Road, Shanghai City, Huamu Town - 201
204, Pudong District -201204 |
|
Date of Birth/Age : |
19.09.1971 |
|
Date of Appointment : |
09.07.2008 |
|
DIN No.: |
02147775 |
KEY EXECUTIVES
|
Name : |
Mr. Anjan Chetan Sheth |
|
Designation : |
Secretary |
|
Address : |
A-22, Sharanam -2 N.R. Dhanajay Towers Shyamal Cross Roads, Satellite,
Ahmedabad – 380015, Gujarat, India |
|
Date of Birth/Age : |
19.07.1987 |
|
Date of Appointment : |
01.06.2012 |
|
PAN No.: |
BFYPS0340R |
|
|
|
|
Name : |
Mr. Rajendra |
|
Designation : |
Account Department |
|
|
|
|
Name : |
Mrs. Vidya |
|
Designation : |
HR Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Names of Shareholders (Equity Share) |
|
No. of Shares |
|
Kiri Industries Limited, India |
|
29999998 |
|
Well Prospering Limited, |
|
44999997 |
|
Kiri Industries Limited, India
Jointly with Pravin Kiri |
|
1 |
|
Kiri Industries Limited, India Jointly with Manish Kiri |
|
1 |
|
Well Prospering Limited, |
|
1 |
|
Well Prospering Limited, |
|
1 |
|
Well Prospering Limited, Central Hong Kong Jointly with Han Gong |
|
1 |
|
Total |
|
75000000 |
|
Names of Shareholders (Preference Share) |
|
No. of Shares |
|
Kiri Industries Limited, India |
|
22200000 |
|
Well Prospering Limited, |
|
33300000 |
|
Total |
|
55500000 |
As on 30.06.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
60.00 |
|
Bodies corporate |
40.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Dye Stuffs. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
V. D. Shukla and Company Chartered Accountants |
|
Address : |
22, Aakruti Society, Satellite Road, Ahmedabad – 380015, Gujarat,
India |
|
Tel. No.: |
91-79-26445335 |
|
Fax No.: |
91-79-26445335 |
|
E-Mail : |
|
|
PAN No.: |
AKHPS9176L |
|
|
|
|
Holding Company : |
Well Prospering Limited |
|
|
|
|
Joint Ventures : |
·
Kiri Industries Limited ·
Well Prospering Limited |
CAPITAL STRUCTURE
After 30.06.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80000000 |
Equity Shares |
Rs.10/- each |
Rs. 800.000 Millions |
|
70000000 |
Preference Shares |
Rs.10/- each |
Rs. 700.000 Millions |
|
|
TOTAL |
|
Rs. 1500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
75000000 |
Equity Shares |
Rs.10/- each |
Rs. 750.000
Millions |
|
55500000 |
Preference Shares |
Rs.10/- each |
Rs. 555.000 Millions |
|
|
TOTAL |
|
Rs. 1305.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1305.000 |
830.000 |
550.000 |
|
|
2] Share Application Money |
73.232 |
18.576 |
0.000 |
|
|
3] Reserves & Surplus |
111.000 |
5.006 |
0.000 |
|
|
4] (Accumulated Losses) |
(308.865) |
0.000 |
(51.459) |
|
|
NETWORTH |
1180.367 |
853.582 |
498.541 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
278.476 |
342.451 |
326.223 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
278.476 |
342.451 |
326.223 |
|
|
DEFERRED TAX LIABILITIES |
112.042 |
70.441 |
55.685 |
|
|
|
|
|
|
|
|
TOTAL |
1570.885 |
1266.474 |
880.449 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1349.724 |
792.780 |
708.627 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
443.747
|
376.941 |
289.295 |
|
|
Sundry Debtors |
56.357
|
150.236 |
270.443 |
|
|
Cash & Bank Balances |
43.897
|
64.102 |
21.357 |
|
|
Other Current Assets |
1.316
|
0.240 |
2.773 |
|
|
Loans & Advances |
139.319
|
146.069 |
53.233 |
|
Total
Current Assets |
684.636
|
737.588 |
637.101 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
376.436
|
132.845 |
226.171 |
|
|
Other Current Liabilities |
67.483
|
116.152 |
233.194 |
|
|
Provisions |
24.185
|
19.253 |
6.092 |
|
Total
Current Liabilities |
468.104
|
268.250 |
465.457 |
|
|
Net Current Assets |
216.532
|
469.338 |
171.644 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
4.629 |
4.656 |
0.178 |
|
|
|
|
|
|
|
|
TOTAL |
1570.885 |
1266.474 |
880.449 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
529.306 |
1267.153 |
398.745 |
|
|
|
Other Income |
8.029 |
27.244 |
16.512 |
|
|
|
TOTAL (A) |
537.335 |
1294.397 |
415.257 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption Material changes inventories |
454.857 |
926.616 |
|
|
|
|
Manufacturing Service cost |
73.677 |
137.798 |
386.929 |
|
|
|
Employee related expenses |
36.108 |
21.617 |
|
|
|
|
Administrative selling other expenses |
53.690 |
49.725 |
|
|
|
|
TOTAL (B) |
618.332 |
1135.756 |
386.929 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(80.997) |
158.641 |
28.328 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
42.985 |
52.286 |
8.701 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(123.982) |
106.355 |
19.627 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
36.943 |
33.129 |
15.401 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(160.925) |
73.226 |
4.226 |
|
|
|
|
|
|
|
|
|
Add |
Prior period
items before tax |
0.194 |
(1.009) |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
41.637 |
15.731 |
55.685 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(202.368) |
56.486 |
(51.459) |
|
|
|
|
|
|
|
|
|
Less |
PRIOR PERIOD
ITEMS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5.005 |
(51.481) |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
111.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(308.865) |
5.005 |
(51.481) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
0.000 |
0.000 |
386.434 |
|
|
|
TOTAL EARNINGS |
0.000 |
0.000 |
386.434 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
0.000 |
259.336 |
|
|
|
Stores & Spares |
0.000 |
0.000 |
49.432 |
|
|
TOTAL IMPORTS |
0.000 |
0.000 |
308.768 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(4.18) |
1.01 |
(1.36) |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
PAT / Total Income |
(%) |
(37.66)
|
4.36 |
(12.39) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(30.40)
|
5.77 |
1.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(7.91)
|
4.78 |
0.31 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.13)
|
0.08 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.23
|
0.40 |
0.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.46
|
2.75 |
1.38 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
Rs. In Millions
|
Particular |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
Creditors due others |
376.436 |
132.845 |
226.171 |
|
Total |
376.436 |
132.845 |
226.171 |
|
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
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 |
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Corporate
identity number of the company |
U24114GJ2008PLC053537 |
|
Name of the
company |
LONSEN KIRI
CHEMICAL INDUSTRIES LIMITED |
|
Address of the
registered office or of the principal place of business in |
7th Floor, Hasubhai Chambers, |
|
This form is for |
Creation of
charge |
|
Type of charge |
Movable property
(not being pledge) |
|
Particular of
charge holder |
Union Bank of India , Ashram Road Branch, C. U. Shah Chambers, Nr.
Gujarat Vidhyapith, Ashram Road,, Ahmedabad - 380014, Gujarat, India |
|
Nature of instrument
creating charge |
Composite
Hypothecation Deed |
|
Date of
instrument Creating the charge |
28.09.2012 |
|
Amount secured by
the charge |
Rs. 80.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest Base rate plus
4.75% present effective rate is 15.25% p.a. with monthly rests Terms of repayment 48 monthly
installments of Rs 16,66,667 each after a moratorium period of 1 year from
the date of first disbursement Margin 89.87% Extent and operation of the charge First charge of
machineries / other assets purchased out of Term Loan Bank and second charge
on all the other assets of the company purchased / to be purchased for
setting up unit for manufacturing of levafix reactive dyes of the company. |
|
Short particulars
of the property charged (Including location of the property) |
1.First charge on
machinery / other assets purchased out of term loan bank for setting up unit
for manufacturing of levafix reactive dyes of the company. 2.Second charge
on all the other assets of the company purchased for setting up unit for
manufacturing of levafix reactive dyes of the company. |
FIXED ASSETS
·
Land
·
Furniture and Fixture
·
Computers
·
Vehicles
·
Office Equipments
·
Plant and Machinery
·
Building
AS PER WEBSITE
PRESS RELEASES
LONSEN KIRI CHEMICAL
INDUSTRIES' DYESTUFF PLANT, INDIA
A joint venture company between China-based Zhejiang Lonsen and India-based Kiri Dyes and Chemicals inaugurated a new dyestuff plant on 19 July 2009 in Vadodara, the Gujarat state of India. The joint venture, called Lonsen Kiri Chemical Industries Ltd (LKCIL), is located in the Dudhwada village and manufactures reactive dyes.
The plant is expected to be the second largest unit of its kind in the world producing from India. It has an annual initial production reactive dyestuff manufacturing capacity of 20,000t. The production capacity will be gradually increased to 50,000t to 60,000t per year.
Construction of the plant started in September 2008 and was completed within seven months. The project provided about 500 jobs in the region.
Lonsen Kiri dyestuff
manufacturing plant background
In September 2007, Zhejiang Longsheng Group signed a Memorandum of Understanding (MoU) with Kiri Dyes and Chemicals for a strategic cooperation and setting up the dyestuff plant by forming a joint venture.
Under the MoU, the registered initial capital costs of about $10m for setting up the plant were funded by both companies. Longsheng holds a 60% stake in LKCIL while the remaining 40% is held by Kiri Dyes and Chemicals (KDCL).
In May 2008, KDCL and Well Prospering (WPL), a subsidiary of Zhejiang Longsheng Group, approved plans to set-up the plant for dyestuff at the village of Dudhwada. The foundation stone for the plant construction was laid on 6 September 2008.
The LKCIL JV signed a MoU for the plant with the Government of Gujarat during the Vibrant Gujarat Investor Summit held in January 2009.
LKCIL plant design
and construction
The LKCIL plant incorporates a combination of technology and business practices from China and India. It has environmentally friendly features such as an effluent treatment plant and a rain-harvesting facility. The effluents are recycled and reused.
The plant is designed with the expertise of both Lonsen and Kiri. The companies have collaboratively designed the plant and share knowledge in the product technology, engineering designs and effluent treatment processes, including the economy of scale, and sales and marketing.
LKCIL plant process
technology
The chromophore of reactive dyes comprises of a substituent, which is activated to react with the surface of substrate directly. The reactive dyes are mainly used for dyeing cellulose fibres.
The dyes, containing reactive groups of an activated double bond or a haloheterocycle, are used for colouring fibres by applying them in an alkaline dye bath. The reaction of cellulosic fibre with hydroxyl group forms a chemical bond to create the colouring. The reactive dyeing is widely used for the colouration of cellulosic fibres. They are also applied for the colouration of nylon and wool under weakly acidic conditions.
In the reactive dyeing process, hydrogen (H) atoms in the cellulose molecule of the substrate react with the chlorine atom to form a bond. The utilisation degree of reactive dyes is low compared with common dye stuffs due to the hydrolysis reaction of the functional group with water.
Plant feedstock
The feedstock for the joint venture company will be supplied by KDCL from its existing intermediates plant near the new dyestuff facility. The output reactive chemicals will be used in leather, paint, cotton textile and printing ink industries.
Dye market growth
The production from the LKCIL facility will mainly focus on 100% exports to countries outside India. The joint venture expects to increase their global dye market share by about 10%.
The top line sales turnover from the plant is expected to be about INR 5bn ($110m) and a bottom line of INR 0.5bn to 0.6bn ($13m) is expected within the next two years of operation.
LKCIL expects to have robust demand for the reactive dyes in the international market. The production will be exported to about 35 countries globally, including Germany, Korea, Taiwan and Switzerland.
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 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 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.54.40 |
|
|
1 |
Rs.71.57 |
|
Euro |
1 |
Rs.71.24 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
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 |
3 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
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.