MIRA
INFORM REPORT
|
Report Date : |
19.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
CHEMPLAST SANMAR LIMITED |
|
|
|
|
Formerly Known
As : |
CHEMICALS AND PLASTICS INDIA LIMITED |
|
|
|
|
Registered
Office : |
No. 9, Cathedral Road, Chennai – 600086, Tamilnadu |
|
|
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|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
13.03.1985 |
|
|
|
|
Com. Reg. No.: |
18-11637 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.799.699 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U24230TN1985PLC011637 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEC00051C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACC3000F |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
|
|
Line of Business
: |
Manufacturer of PVC Resins, Caustic Soda, Chloro Chemicals,
Refrigerant Gas and Industrial Salt. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 4900000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
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|
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Litigation : |
Exist |
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|
Comments : |
Subject is an established company having moderate track record. The company
is continuously incurring losses from its operations. However, trade
relations are reported as fair. Business active. Payments are reported to be
slow. The company can considered for business with some cautions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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
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 |
FITCH |
|
Rating |
Long Term Rating BBB- |
|
Rating Explanation |
This rating indicate that expectations of
default risk are currently low. The capacity for payment of financial commitments
is considered but adverse business or economic conditions are more likely to
impair their capacity. |
|
Date |
18.09.2011 |
Note: The Company is not traded in BSE for last 30
days.
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 : |
No. 9, Cathedral Road, Chennai – 600086, Tamilnadu, India |
|
Tel. No.: |
91-44-28118300/ 28273333/ 28273334/ 28273335/ 28273336/ 28128500/ 28128722/ 28128723/ 28128724 |
|
Fax No.: |
91-44-28111902/ 28269359/ 282777411/ 28112627 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
Main Office: |
6, VI Main, BDA Industrial Suburb, Near SRS Road, Peenya, Bangalore - 560058, Karnataka, India |
|
Tel No.: |
91-80-28391453/ 6894/ 28378057 |
|
Fax No.: |
91-80-28392825 |
|
|
|
|
Sales Office: |
Chemplast Sanmar
Limited Harsha Bhavan, II Floor, E Block,
Connaught Place, New Delhi -110001, India 302, III Floor, Ashoka Chambers, House No
5-9-22/1/1, Adarsh Nagar, Hyderabad - 500 063, Andhra Pradesh, India 407, Swastik Chambers, Sion-Trombay Road,
Chembur, Mumbai - 400 071, Maharashtra, India EDC Installation, Behind SPIC Ammonia
Plant, Red Gate Port Trust, Tuticorin 628 004 |
|
|
|
|
Corporate Office: |
Intec Polymers 407-412, Swastik Chambers, Sion-Trombay Road,
Chembur, Mumbai - 400 071, Maharashtra, India Sanmar
Engineering Corporation Limited 147 Karapakkam Village, Old Mahabalipuram
Road, Chennai – 600096, Tamilnadu, India 89/1, Vadugapatti Village, Viralimalai 621
316, Pudukottai District, India |
|
|
|
|
Regional Office : |
· Harsha Bhavan, 2nd Floor, Block ‘E’, Connaught Place, New Delhi – 110001, India Tel. 91-11-23413112 Fax. 91-11-23418164
· 407-412, Swastik Chambers, Sion-Trombay Road, Chembur, Mumbai – 400071, Maharashtra, India Tel. 91-22-25973390 Fax. 91-22-25973395 |
|
|
|
|
Plants : |
·
Plant
II, Raman Nagar PO, Mettur Dam – 636 403, Sales, Tamilnadu, India >
PVC
: Tel.
91-4298-231982 Fax.
91-4298-231986 >
Chlorochemicals
: Caustic Soda, Chlorine, Chlorinated Solvents, Refrigerant Gases and Silicon
Wafers ·
Krishnagiri
and Panruti, Tamilnadu, India >
Industrial
Alcohol ·
Vedaranyam,
Tamilnadu, India >
Industrial
Salt PVC
Plant II :
Karaikal Plant: Industrial
Alcohol Plant II :
Caustic Chlor
Plant
III : Karaikal Plant: Salt Works :
Metkem Silicon
Plant IV :
Mettron
Plant I :
Solvents
Plant III : Raman Nagar PO, Mettur Dam 636 403, |
|
|
|
|
Branches : |
Located at :-
·
·
Kolkata, ·
Mumbai, ·
|
DIRECTORS
(AS ON 25.07.2011)
|
Name : |
Mr. Pavattakudi Sundaresan Jayaraman |
|
Designation : |
Whole-time Director |
|
Address : |
Flat No.B2, Ashok Aishwaryam New No.13, Habibullah Road, T. Nagar, Chennai – 600017, Tamilnadu, India |
|
Date of Birth/ Age : |
08.05.1950 |
|
Date of Appointment : |
01.09.2000 |
|
DIN No.: |
00011108 |
|
PAN No.: |
AANPJ1076E |
|
|
|
|
Name : |
Mr. Srinivasan Gopal |
|
Designation : |
Managing Director |
|
Address : |
Srikrish 47-A4, Main Road, Gandhi Nagar Adyar, Tamilnadu, India |
|
Date of Birth/ Age : |
10.09.1950 |
|
Date of Appointment : |
01.04.2008 |
|
DIN No.: |
00012142 |
|
PAN No.: |
AANPG1005E |
|
|
|
|
Name : |
Mr. Valapet Krishnaswamy Parthasarathy |
|
Designation : |
Director |
|
Address : |
Flat No.08/243, TTK Road, Chennai – 600018, Tamilnadu, India |
|
Date of Birth/ Age : |
31.01.1939 |
|
Date of Appointment : |
29.07.2004 |
|
DIN No.: |
00022559 |
|
|
|
|
Name : |
Mr. Mahadevan Surya Sekhar |
|
Designation : |
Director |
|
Address : |
Sri Raj 30, Krishnapuri, Rapuram, Chennai – 600028, Tamilnadu, India |
|
Date of Birth/ Age : |
11.08.1948 |
|
Date of Appointment : |
15.04.2005 |
|
DIN No.: |
00013667 |
|
|
|
|
Name : |
Mr. Manachanallur Narayanaswamy Radhakrishnan |
|
Designation : |
Director |
|
Address : |
No.12, Besant Avenue, Karpagam Gardens Adyar, Chennai – 600020, Tamilnadu, India |
|
Date of Birth/ Age : |
03.08.1943 |
|
Date of Appointment : |
08.06.2005 |
|
DIN No.: |
00011091 |
|
|
|
|
Name : |
Mr. Sankara Venkitasubra Mony |
|
Designation : |
Director |
|
Address : |
Flat No.B-201, The Atrium 49 Kalakshetra Road, Thiruvanmiyur, Chennai – 600041, Tamilnadu, India |
|
Date of Birth/ Age : |
06.10.1937 |
|
Date of Appointment : |
16.01.2006 |
|
DIN No.: |
00013645 |
KEY EXECUTIVES
|
Name : |
Mr. Mahadevan Raman |
|
Designation : |
Company Secretary |
|
Address : |
Flat No.8/2-19,
Moosa street, Chennai – 600017, Tamilnadu, India |
|
Date of Birth/ Age : |
20.08.1960 |
|
Date of Appointment : |
31.10.2007 |
|
PAN No.: |
AAEPR5253Q |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 25.07.2011)
Shareholding details file attached.
(AS ON 30.09.2011)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Public Financial Institutions |
|
5.08 |
|
Nationalised/ Other Banks |
|
0.02 |
|
Mutual Funds |
|
0.01 |
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
0.19 |
|
Bodies corporate |
|
85.29 |
|
Other top fifty shareholders |
|
2.65 |
|
Others |
|
6.76 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of PVC Resins, Caustic Soda, Chloro Chemicals,
Refrigerant Gas and Industrial Salt. |
||||
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Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· State Bank of Mysore Industrial Finance Branch, II Floor, M. O. H. Building, 576 Anna Salai, Chennai – 60006, Tamilnadu, India · Axis Bank Limited 192, Anna Salai Karumuthu Bilayam, Chennai – 600002, Tamilnadu, India · Andhra Bank Mowbrays Road Branch, 265 TTK Salai, Alwarpet, Chennai- 600018, Tamilnadu, India · State Bank of India 149, Greams Road, Chennai – 600006, Tamilnadu, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Price Waterhouse and Company Chartered Accountants |
|
Address : |
No 32, Khader Nawazkan Road, Nungambakkam, Chennai, Tamilnadu, India |
|
PAN No.: |
AAEFP3641G |
|
|
|
|
Holding Company
: |
· Sanmar Holdings Limited |
|
|
|
|
Associates : |
· BS and B Safety Systems (India) Limited · Cabot Sanmar Limited · Cathedral Corporate Finance · Emerson Process Management Chennai Limited · Flowserve Sanmar Limited · Kalamkriya Limited · Matrix Metals LLC · Mowbrays Corporate Finance · SHL Property Holdings Limited · Sanmar Consolidations Limited · Sanmar Engineering Services Limited · Sanmar Foundries Limited · Sanmar Group Corporate Finance · Sanmar Shipping Limited · Sanmar Speciality Chemicals Limited · Stargate Realty Private Limited · TCI Sanmar Chemicals SAE · Tyco Sanmar Limited · Xomox Sanmar Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2000000000 |
Equity Shares |
Rs.1/- each |
Rs.2000.000 Millions |
|
35000 |
Preference Shares |
Rs.100/- each |
Rs.3.500 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.2003.500
Millions |
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
799699067 |
Equity Shares |
Rs.1/- each |
Rs.799.699
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
799698527 |
Equity Shares |
Rs.1/- each |
Rs.799.699
Millions |
|
|
|
|
|
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 |
799.699 |
799.699 |
799.699 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
425.226 |
944.709 |
1366.590 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1224.925 |
1744.408 |
2166.289 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6225.833 |
7626.112 |
11918.375 |
|
|
2] Unsecured Loans |
1445.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
7670.833 |
7626.112 |
11918.375 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8895.758 |
9370.520 |
14084.664 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13599.303 |
13994.622 |
14648.909 |
|
|
Capital work-in-progress |
72.383 |
51.667 |
24.720 |
|
|
|
|
|
|
|
|
INVESTMENT |
17.800 |
17.800 |
3.773 |
|
|
DEFERREX TAX ASSETS |
813.700 |
604.100 |
447.600 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1499.981
|
1865.528 |
2141.279 |
|
|
Sundry Debtors |
1308.334
|
1338.171 |
966.708 |
|
|
Cash & Bank Balances |
62.165
|
404.758 |
310.604 |
|
|
Other Current Assets |
203.544
|
693.084 |
395.383 |
|
|
Loans & Advances |
1604.777
|
1682.715 |
1683.359 |
|
Total
Current Assets |
4678.801
|
5984.256 |
5497.333 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
6954.063
|
7242.697 |
6350.542 |
|
|
Other Current Liabilities |
3228.674
|
4030.230 |
228.438 |
|
|
Provisions |
103.492
|
8.998 |
8.329 |
|
Total
Current Liabilities |
10286.229
|
11281.925 |
6587.309 |
|
|
Net Current Assets |
(5607.428)
|
(5297.669) |
(1089.976) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
49.638 |
|
|
|
|
|
|
|
|
TOTAL |
8895.758 |
9370.520 |
14084.664 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
21296.976 |
19208.715 |
9336.835 |
|
|
|
Other Income |
107.209 |
93.631 |
513.258 |
|
|
|
TOTAL (A) |
21404.185 |
19302.346 |
9850.093 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
12960.507 |
11767.787 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
226.984 |
348.752 |
9182.830 |
|
|
|
Employee benefit expense |
888.003 |
735.173 |
|
|
|
|
Other Expenses |
5506.946 |
4626.487 |
|
|
|
|
TOTAL (B) |
19582.440 |
17478.199 |
9182.830 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1821.745 |
1824.147 |
667.263 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1588.836 |
1564.100 |
1246.928 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
232.909 |
260.047 |
(579.665) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
933.910 |
822.808 |
1285.146 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(701.001) |
(562.761) |
(1864.811) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(181.518) |
(140.880) |
(583.169) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(519.483) |
(421.881) |
(1281.642) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
205.589 |
234.284 |
140.534 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
11791.184 |
10522.887 |
5344.911 |
|
|
|
Stores & Spares |
1438.279 |
1148.481 |
59.988 |
|
|
|
Capital Goods |
11.798 |
19.160 |
4.388 |
|
|
TOTAL IMPORTS |
13241.261 |
11690.528 |
5409.287 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.65) |
(0.53) |
(1.60) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(2.43)
|
(2.19) |
(13.01) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.29)
|
(2.93) |
(19.97) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.84)
|
(2.82) |
(9.26) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.57)
|
(0.32) |
(0.86) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
6.26
|
4.37 |
5.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.45
|
0.53 |
0.83 |
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 |
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 |
Yes |
|
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 |
------------------------------------------------------------------------------------------------------------------------------
CHENNAI COURT
CASE STATUS
INFORMATION SYSTEMS
|
Case Status |
Pending |
|
Status of |
CIVIL MISC APPEAL |
|
Case No. |
700 |
|
Year |
2012 |
|
Petitioner |
Commissioner of Central |
|
Respondent |
Chemplast Sanmar Limited |
|
Pet’s Advocate |
K. Ravi Anantha Padman |
|
Res’s Advocate |
L. Maithili and Associate |
|
Category |
No Category Mentioned |
|
|
Last Listed on: No
date Mentioned |
|
Case Updated on: |
April 12, 2012 |
------------------------------------------------------------------------------------------------------------------------------
UNSECURED LOANS
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
|
|
|
|
Loans and Advances from Others |
1445.000 |
0.000 |
|
|
|
|
|
Total |
1445.000 |
0.000 |
MANAGEMENT
DISCUSSION AND ANALYSIS
PVC Business
Review of Operations
The Company operates
an integrated facility at Mettur Dam to manufacture PVC resin. This facility
has the flexibility to produce various grades of PVC resin, viz. Suspension,
Paste and Battery Separator. The intermediate - Ethylene Dichloride (EDC) -
required for manufacture of PVC is in turn produced at the companies EDC plant
at Karaikal using imported ethylene and captive chlorine chlorine in turn is
manufactured at the companys two Chlor-alkali facilities located at Mettur Dam
and Karaikal.
The year under
review is the second full year of operation of the Greenfield project at
Cuddalore for production of Suspension Resin.
Suspension Resin:
Suspension resin
demand in India for the year is estimated at 20 lakh tonnes, a marginal growth
of around 4% over the previous year. Of this, around 12.4 lakh tonnes were met
out of domestic production with the balance coming from imports. Demand growth
was limited due to unseasonal rains in certain parts of the country as well as
the tight liquidity position that existed for most part of the year.
In line with the
fluctuations in Asian PVC prices, Suspension PVC prices in India also
fluctuated right through the year. However towards end of the year both PVC and
VCM prices moved up strongly.
Tosoh, Japan is
one of the largest merchant exporters of VCM. With an accident severely
limiting operations in Tosoh, Japan from Nov 2011 onwards global markets
witnessed severe VCM supply crunch resulting in spurt in VCM prices.
Simultaneously, with the uncertain political situation in Iran, crude prices
rebounded strongly, reflecting in strong ethylene prices. Both these
developments led to a margin squeeze for their PVC resin.
Cyclone Thane
The companies
plant at Cuddalore suffered minor damage from Cyclone Thane towards the end of
December 2011 and the operations recommenced within a week.
It is a matter of
great pride that the company was able to resume operations so fast, thanks to
the excellent design parameters adopted while construction of the plant.
Paste Resin:
Consumption in
India during the year 2011-12 is estimated at 85,500 tonnes registering a
growth of around 8% over the previous year. Market growth has been limited due
to the tight liquidity situation. Here again the margins were impacted due to
fluctuations in selling prices and higher ethylene cost.
Battery Separator Resin (BSR):
The company has temporarily suspended production of BSR due to
uncertainty in availability of a key raw material.
Trubore Piping System:
In pursuit of its forward
integration strategy, the company re-entered the PVC pipes business in the
financial year 2006-2007 and the present aggregate installed capacity of the
company’s plants at Ponneri and Shinoli is 56,000 TPA of PVC Pipes.
Over the last few
years, the company has been facing major challenges in this business which
included very low margin and difficult market conditions resulting in
substantial under utilisation of its installed capacity. Despite various
initiatives taken by the company, desired results could not be achieved. The
company therefore proposes to sell/ dispose off the Trubore Piping Systems
business subject to necessary approval from the shareholders of the company and
other approvals as may be required.
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.54.29 |
|
|
1 |
Rs.81.94 |
|
Euro |
1 |
Rs.70.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--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 |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
31 |
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.