1. Summary Information
|
|
|
Country |
India |
|
Company Name |
CLARIANT
CHEMICALS (INDIA) LIMITED |
Principal Name 1 |
Mr. Rajendra Ambalal Shah |
|
Status |
Good |
Principal Name 2 |
Mr. Peter Palm |
|
|
|
Registration # |
11-010806 |
|
Street Address |
Kolshet Road, P.O. Sandoz Baug, Thane - 400607,
Maharashtra |
||
|
Established Date |
27.12.1956 |
SIC Code |
-- |
|
Telephone# |
91-2225-315111 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-2225-315303 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Dyes |
|
|
# of employees |
1077 (Approximately) |
Product Name 2 |
Chemicals |
|
Paid up capital |
Rs.266,607,000/- |
Product Name 3 |
-- |
|
Shareholders |
Promoter and
Promoter Group - 63.40 % Public
shareholding - 36.60 % |
Banking |
Standard
Chartered Bank Limited |
|
Public Limited Corp. |
YES |
Business Period |
57 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A (74) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding Company |
-- |
Clariant International AG |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.12.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
2,409,670,000 |
Current Liabilities |
2,257,398,000 |
|
Inventories |
1,623,251,000 |
Long-term Liabilities |
0.000 |
|
Fixed Assets |
1,743,096,000 |
Other Liabilities |
941,484,000 |
|
Deferred Assets |
0.000 |
Total Liabilities |
3,198,882,000 |
|
Invest& other Assets |
2,438,021,000 |
Retained Earnings |
4,748,549,000 |
|
|
|
Net Worth |
5,015,156,000 |
|
Total Assets |
8,214,038,000 |
Total Liab. & Equity |
8,214,038,000 |
|
Total Assets (Previous Year) |
7,985,132,000 |
|
|
|
P/L Statement as of |
31.12.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
10,962,821,000 |
Net Profit |
1,013,004,000 |
|
Sales(Previous yr) |
9,560,812,000 |
Net Profit(Prev.yr) |
3,040,390,000 |
MIRA
INFORM REPORT
|
Report Date : |
05.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
CLARIANT CHEMICALS (INDIA) LIMITED |
|
|
|
|
Formerly Known
As : |
COLOUR – CHEM LIMITED |
|
|
|
|
Registered
Office : |
Kolshet Road, P.O. Sandoz Baug, Thane – 400607, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2012 |
|
|
|
|
Date of
Incorporation : |
27.12.1956 |
|
|
|
|
Com. Reg. No.: |
11-010806 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 266.607
Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110MH1956PLC010806 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMC10036F / MUMC00339D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACC4298H / AAACC5602P |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Dyes and Chemicals. |
|
|
|
|
No. of Employees
: |
1077 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 20000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an affiliate of Switzerland based Clariant A4, one of the
leading players in the field of fine and specialty chemicals. It is an
established company having excellent track records. Management has failed to file the latest financials of 2013, which the
government department. As per available financials of 2012, the company possesses a robust
financial profile marked by a highly favorable capital structure and ample
liquidity marked by no external borrowings reported during the year under
review. Furthermore, the management has seen some dip in its net profitability
due to volatility in the raw material prices, currency movements and demand
slowdown in the end user industry. The ratings also take into consideration, the diversified product portfolio
and established marketing network of the company. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. In view of strong parentage of the “Clariant Group”, the subject can
be considered excellent 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
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
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry retained
its status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities : AAA |
|
Rating Explanation |
Highest degree of safety and lowest credit risk |
|
Date |
01.10.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk |
|
Date |
01.10.2013 |
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 Office : |
Kolshet Road, P.O. Sandoz Baug, Thane – 400607, Maharashtra, India |
|
Tel. No.: |
91-22-25315111/12/25315412 |
|
Fax No.: |
91-22-25315303 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory
1 : |
113/114, MIDC Industrial Area, P O Dhatav, Roha, District Raigad – 402116, Maharashtra, India |
|
|
|
|
Factory
2 : |
Kudikada. SIPCOT, P.O. Cuddalore – 607005, Tamilnadu, India |
|
|
|
|
Factory
3 : |
Singadiovakkam Village, Attuputtur Post Enathur, Kanchipuram – 631561, Tamilnadu, India |
|
|
|
|
Factory
4 : |
Kolshet Road, Thane – 400607, Maharashtra |
|
|
|
|
Factory
5: |
Rennaissance Industrial and W / Housing Complex, Unit No: B 07, Mumbai
-Nashik Highway, Village: Vashere Post: Padgha Taluka: Bhiwandi, District -
Thane
421101, Maharashtra, India |
DIRECTORS
AS ON: 31.03.2012
|
Name
: |
Mr. Rajendra Ambalal Shah |
|
|
Designation
: |
Chairman cum Managing Director |
|
|
Address
: |
Panorama, |
|
|
Date
of Birth/ Age: |
07.07.1931 |
|
|
Date
of Appointment : |
19.04.2007 |
|
|
|
|
|
|
Name : |
Mr. Peter Palm |
|
|
Designation : |
Vice Chairman and Management Director |
|
|
|
|
|
|
Name : |
Mr. Deepak Parikh |
|
|
Designation : |
Managing Director |
|
|
|
|
|
|
Name
: |
Mr. Bansidhar Sunderlal Mehta |
|
|
Designation
: |
Director |
|
|
Address
: |
C – 37, Fifth Floor, |
|
|
Date
of Birth/ Age: |
19.09.1935 |
|
|
Date
of Appointment : |
27.07.2006 |
|
|
|
|
|
|
Name : |
Mr. Diwan Aruhn Nanda |
|
|
Designation : |
Director |
|
|
|
|
|
|
Name : |
Mr. Henri Schloemer |
|
|
Designation : |
Director |
|
|
|
|
|
|
Name
: |
Mr. Alfred Muench |
|
|
Designation
: |
Director |
|
|
|
|
|
|
Name
: |
Mr. Philipp Hammel |
|
|
Designation
: |
Director |
|
KEY EXECUTIVES
|
Name
: |
Mr. B L Gaggar |
|
Designation
: |
Director in Finance and Company Secretary |
|
|
|
|
Audit Committee: |
·
Mr. R A Shah, Chairman ·
Mr. Diwan A Nanda ·
Mr. Henri Scholmer |
|
|
|
|
Investors’ Grievance Committee |
·
Mr. Diwan A Nanda, Chairman ·
Mr. Peter Palm |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON: 31.12.2013
|
Category of Shareholder |
No. of Shares |
% of No. of Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
16902080 |
63.40 |
|
|
16902080 |
63.40 |
|
Total shareholding
of Promoter and Promoter Group (A) |
16902080 |
63.40 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
1683329 |
6.31 |
|
|
16072 |
0.06 |
|
|
455448 |
1.71 |
|
|
148600 |
0.56 |
|
|
2303449 |
8.64 |
|
|
|
|
|
|
795775 |
2.98 |
|
|
|
|
|
|
5871184 |
22.02 |
|
|
606947 |
2.28 |
|
|
181310 |
0.68 |
|
|
163698 |
0.61 |
|
|
15762 |
0.06 |
|
|
1850 |
0.01 |
|
|
7455216 |
27.96 |
|
Total Public
shareholding (B) |
9758665 |
36.60 |
|
Total (A)+(B) |
26660745 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
26660745 |
0.00 |
%20LIMITED%20-%20255392%2005-Mar-2014_files/image002.gif){kind=small}
%20LIMITED%20-%20255392%2005-Mar-2014_files/image003.gif){kind=small}
%20LIMITED%20-%20255392%2005-Mar-2014_files/image004.gif){kind=small}
%20LIMITED%20-%20255392%2005-Mar-2014_files/image006.gif)
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Dyes and Chemicals |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.12.2011)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity M. Tonnes # |
Actual Production M. Tonnes * # |
|
|
|
|
|
|
|
Intermediates and Colours |
M.T |
NA |
12002 |
9570 |
|
Dyes and specialty chemicals |
M.T |
NA |
74986 |
49044 |
|
|
|
|
|
|
* Excluding captive Consumption
# At different Concentrations
NOTES:
·
The classification
between the class of goods and the installed capacities have been certified by
the Vice -Chairman and Managing Director
on which the auditors have placed reliance, this being a technical matter.
·
Licensed capacity per annum not
indicated due to the abolition of Industrial Licenses as per Notification No.
477(E) dated 25th July, 1991 issued under The Industries (Development and
Regulations) Act 1951.
GENERAL INFORMATION
|
No. of Employees : |
1077 (Approximately) |
|
|
|
|
Bankers : |
·
Standard Chartered Bank Limited Branch M G Road, Fort, Mumbai, Maharashtra, India ·
Citi Bank N.A., Branch M G Road, Fort, Mumbai, Maharashtra, India ·
HSBC Bank, Branch M G Road, Fort, Mumbai, Maharashtra, India |
|
Banking
Relations : |
-- |
|
|
|
|
|
|
Auditors : |
|
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
|
|
Solicitors : |
|
|
|
Name : |
Crawford
Baylor and Company Solicitors
and Advocates |
|
|
|
|
|
|
Holding Company: |
·
EBITO Chemiebeteiligungen AG ·
Clariant International AG ·
Clariant Participations AG |
|
|
|
|
|
|
Ultimate Holding
Company: |
·
Clariant AG, Switzerland |
|
|
|
|
|
|
Subsidiary : |
· Chemtreat Composites India Private Limited |
|
|
|
|
|
|
Fellow Subsidiaries : |
· Clariant (Australia) Pty. Limited · Clariant (Canada) Inc. · Clariant (China) Limited · Clariant (Colombia) SA · Clariant (Egypt) SAE · Clariant (Gulf) FZE · Clariant (Japan) K.K. · Clariant (Korea) Limited · Clariant (Malaysia) Sdn Bhd · Clariant (Maroc) S.A. · Clariant (Mexico) S.A. de C.V. · Clariant (Pakistan) Limited · Clariant (Perú) S.A. · Clariant (Singapore) Pte. Limited · Clariant (Thailand) Limited · Clariant (Tianjin) Limited · Clariant (Uruguay) SA · Clariant Chemicals (China) Limited · Clariant Chemicals (Taiwan) Company Limited · Clariant Corporation · Clariant Ibérica Producción S.A. · Clariant Masterbatch Ibérica S.A. · Clariant Masterbatches (Deutschland) GmbH · Clariant Masterbatches (Malaysia) Sdn Bhd · Clariant Masterbatches (Italia) S.p.A. · Clariant Masterbatches (Saudi Arabia) Limited · Clariant Masterbatches (Shanghai) Limited · Clariant Masterbatches (Thailand) Limited · Clariant Masterbatches Benelux SA · Clariant Masterbatches Ireland Limited · Clariant Masterbatches Norden AB · Clariant Pigments (Korea) Limited · Clariant Pigments (Tianjin) Limited · Clariant Prodotti (Italia) S.p.A. · Clariant Produkte (Deutschland) GmbH · Clariant Produkte (Schweiz) AG · Clariant S.A. · Clariant Southern Africa (Pty.) Limited · Clariant Specialty Chemicals (Zhenjiang) Company Limited · Clariant Trading (China) Limited · Clariant (Türkiye) Boya ve Kimyevi Maddeler Sanayi ve Ticaret A.S. · PT Clariant Indonesia · The Egyptian German Company for Dyes and Resins SAE (Egcodar SAE) |
|
CAPITAL STRUCTURE
AS ON: 31.12.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
26660745 |
Equity Shares |
Rs.10/- each |
Rs. 266.607
Million |
|
|
|
|
|
RECONCILIATION OF NUMBER
OF EQUITY SHARES OUTSTANDING AS AT THE BEGINNING AND AT THE END OF THE YEAR
|
|
As on 31.12.2012 |
|
|
|
Number |
Rs. In Millions |
|
Equity shares : |
|
|
|
Outstanding as at the beginning of the year |
26660745 |
266.607 |
|
Add : Issued during the year |
|
|
|
Outstanding as at the end of the year |
26660745 |
266.607 |
SHAREHOLDERS HOLDING
MORE THAN 5% EQUITY SHARES
|
|
As on 31.12.2012 |
|
|
Name of Shareholder |
Number |
Percentage |
|
EBITO Chemiebeteiligungen AG. * |
8167080 |
30.63% |
|
Clariant International AG. * |
6075000 |
22.79% |
|
Clariant Participations AG. * |
2660000 |
9.98% |
NOTE: * Subsidiaries of the ultimate holding company Clariant AG, Switzerland.
The company has not allotted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back during the period of five years immediately preceding the Balance sheet date.
Rights, preferences and
restrictions attached to the shares
The Company has only one class of equity share having a par value of Rs.10/- per share. Each shareholder has the following voting rights (i) On a show of hands: one vote for a member present in person and (ii) On a poll: one vote for each equity share registered in the name of the member or held by the beneficial owner. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend. In the event of winding up, the liquidator may, with the sanction of a special resolution of the company and any other sanction required by the Act, divide amongst the members, in specie or kind, the whole or any part of the assets of the company, whether they shall consist of property of the same kind or not.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.12.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
|
266.607 |
|
(b) Reserves & Surplus |
|
|
4748.549 |
|
(c) Money received against share warrants |
|
|
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
|
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
|
|
5015.156 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
|
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
|
53.786 |
|
(c) Other long term liabilities |
|
|
29.450 |
|
(d) long-term provisions |
|
|
257.227 |
|
Total Non-current Liabilities (3) |
|
|
340.463 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
|
0.000 |
|
(b) Trade payables |
|
|
1845.541 |
|
(c) Other current liabilities |
|
|
382.407 |
|
(d) Short-term provisions |
|
|
630.471 |
|
Total Current Liabilities (4) |
|
|
2858.419 |
|
|
|
|
|
|
TOTAL |
|
|
8214.038 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
|
1743.096 |
|
(ii) Intangible Assets |
|
|
0.000 |
|
(iii) Capital work-in-progress |
|
|
91.498 |
|
(b) Non-current Investments |
|
|
76.709 |
|
(c) Deferred tax assets (net) |
|
|
0.000 |
|
(d) Long-term Loan and Advances |
|
|
328.617 |
|
(e) Other Non-current assets |
|
|
0.000 |
|
Total Non-Current Assets |
|
|
2239.920 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
|
2269.814 |
|
(b) Inventories |
|
|
1623.251 |
|
(c) Trade receivables |
|
|
1483.422 |
|
(d) Cash and cash equivalents |
|
|
142.739 |
|
(e) Short-term loans and advances |
|
|
421.151 |
|
(f) Other current assets |
|
|
33.741 |
|
Total Current Assets |
|
|
5974.118 |
|
|
|
|
|
|
TOTAL |
|
|
8214.038 |
|
SOURCES OF FUNDS |
|
31.12.2011 |
31.12.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
266.607 |
266.607 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
4587.653 |
3404.351 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
4854.260 |
3670.958 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
2.019 |
10.528 |
|
|
TOTAL BORROWING |
|
2.019 |
10.528 |
|
|
DEFERRED TAX LIABILITIES |
|
45.643 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
4901.922 |
3681.486 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
1704.872 |
1355.782 |
|
|
Capital work-in-progress |
|
148.908 |
198.787 |
|
|
Fixed assets held for disposal |
|
0.000 |
37.870 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
2665.126 |
1918.391 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
10.808 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
1155.943
|
907.262
|
|
|
Sundry Debtors |
|
1333.891
|
1256.093
|
|
|
Cash & Bank Balances |
|
284.455
|
209.148
|
|
|
Other Current Assets |
|
0.000
|
0.000
|
|
|
Loans & Advances |
|
691.937
|
789.574
|
|
Total
Current Assets |
|
3466.226
|
3162.077
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
|
1701.179
|
1664.315 |
|
|
Other Current Liabilities |
|
234.153
|
510.659
|
|
|
Provisions |
|
1147.878
|
827.255
|
|
Total
Current Liabilities |
|
3083.210
|
3002.229
|
|
|
Net Current Assets |
|
383.016
|
159.848
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
4901.922 |
3681.486 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10962.821 |
9560.812 |
9747.128 |
|
|
|
Other Income |
191.420 |
394.310 |
312.345 |
|
|
|
TOTAL (A) |
11154.241 |
9955.122 |
10059.473 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials |
5472.388 |
5914.979 |
5862.730 |
|
|
|
Purchase of stock-in-trade |
1674.802 |
-- |
-- |
|
|
|
Changes in inventories |
(291.025) |
-- |
-- |
|
|
|
Employee benefits expenses |
906.147 |
-- |
-- |
|
|
|
Personnel cost |
-- |
742.445 |
671.277 |
|
|
|
Impairment of fixed assets |
-- |
0.000 |
0.000 |
|
|
|
Other expenditure |
1830.642 |
1618.576 |
1665.024 |
|
|
|
Service Charge recovered |
-- |
(16.847) |
(36.977) |
|
|
|
Exceptional items |
(92.047) |
(2413.320) |
72.947 |
|
|
|
TOTAL (B) |
9500.907 |
5845.833 |
8235.001 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1653.334 |
4109.289 |
1824.472 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
14.152 |
(26.045) |
2.320 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1639.182 |
4135.334 |
1822.152 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
216.035 |
181.243 |
168.916 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1423.147 |
3954.091 |
1653.236 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
410.143 |
913.701 |
529.086 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1013.004 |
3040.390 |
1124.150 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1263.048 |
383.785 |
303.167 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General reserve |
101.300 |
304.039 |
112.415 |
|
|
|
Interim dividend |
266.607 |
799.822 |
266.607 |
|
|
|
Proposed dividend (Final) |
466.563 |
799.822 |
533.215 |
|
|
|
Corporate tax on dividend (Interim & Final) |
118.938 |
259.502 |
132.840 |
|
|
|
Corporate tax on dividend of Previous period |
0.000 |
(2.058) |
(1.545) |
|
|
BALANCE CARRIED
TO THE B/S |
1322.644 |
1263.048 |
383.785 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports (F.O.B.) |
2574.226 |
2160.990 |
1973.148 |
|
|
|
Know-how |
0.000 |
0.000 |
0.000 |
|
|
|
|
0.000 |
0.000 |
0.000 |
|
|
|
Others (insurance, freight, commission, claims, exchange
gain etc.) |
324.479 |
255.847 |
199.406 |
|
|
TOTAL EARNINGS |
2898.705 |
2416.837 |
2172.554 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Trading Terms |
1788.389 |
2034.360 |
2079.542 |
|
|
|
Components and spare parts |
6.519 |
9.184 |
4.786 |
|
|
|
Capital Goods |
23.770 |
83.372 |
11.993 |
|
|
TOTAL IMPORTS |
1818.678 |
2126.916 |
2096.321 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
38.00 |
114.04 |
42.16 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
PAT / Total Income |
(%) |
9.08 |
30.54
|
11.17
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.98 |
41.36
|
16.96
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.69 |
76.47
|
36.59
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28 |
0.81
|
0.45
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00
|
0.00
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.09 |
1.12
|
1.05
|
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2010 |
31.12.2011 |
31.12.2012 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
9,747.128 |
9,560.812 |
10,962.821 |
|
|
|
-1.911 |
14.664 |
%20LIMITED%20-%20255392%2005-Mar-2014_files/image008.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2010 |
31.12.2011 |
31.12.2012 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
9,747.128 |
9,560.812 |
10,962.821 |
|
Profit |
1,124.150 |
3,040.390 |
1,013.004 |
|
|
11.53% |
31.80% |
9.24% |
%20LIMITED%20-%20255392%2005-Mar-2014_files/image010.gif)
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (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 |
CASE DETAILS
HIGH
COURT OF BOMBAY
|
Bench:- Bombay |
|||||||
|
Presentation Date:- 08/08/2013 |
|||||||
|
Lodging No:- |
NMSL/1382/2012 |
Filing Date:- |
24/04/2012 |
Reg. No.:- |
NMS/1096/2012 |
Reg. Date:- |
24/04/2012 |
|
|
|||||||
|
Lodging No:- |
SL/3187/2011 |
|
Reg. No.:- |
S/3035/2011 |
|||
|
|
|||||||
|
Petitioner:- |
HINDUSTAN ORGANICS CHEMICALS LIMITED |
Respondent:- |
CLARIANT CHEMICALS (INDIA) LIMITED |
||||
|
District:- |
MUMBAI |
Resp. Adv.: |
CHITNIS AND COMPANY (0) |
||||
|
|
|
||||||
|
|
|||||||
|
Bench:- |
SINGLE |
||||||
|
Status:- |
Transferred |
Category:- |
Notice Of Motion |
||||
|
Transfer Date: |
03/10/2012 |
Remark: |
TRANSFERRED TO CITY CIVIL COURT |
||||
|
|
|||||||
|
Act:- |
Code of Civil Procedure 1908 |
|
|
||||
VIEW INDEX OF
CHARGES
|
S. No |
Charge ID |
Date of Charge Creation /Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN |
|
1 |
90284813 |
20/12/1995 |
13,500,000.00 |
CITY BANK N A |
766 SAKTHI TOWERS, MOUNT ROAD,
MADRAS, TAMIL NADU |
- |
|
2 |
90285064 |
11/10/1993 |
15,000,000.00 |
THE IND. CREDIT AND INVESTMENT
CORP. OF INDIA LIMITED |
163 BACKBAY RECLAMATION, BOMBAY,
MAHARASHTRA - 400020, INDIA |
- |
|
3 |
90228508 |
06/03/1992 |
20,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICE
G.N. VAIDYA MARG, MUMBAOCALCUTTA, MAHARASHTRA - 400023, INDIA |
- |
|
4 |
90228354 |
17/06/1992 * |
20,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICEE
G.N. VAIDYA MARG, MUMBAI, MAHARASHTRA - 400023, INDIA |
- |
|
5 |
90228322 |
01/10/1990 |
950,000.00 |
STATE BANK OF INDIA |
COMMERCILA BRANCH; JUSTICE G.N.
VAIDYA MARG, MUMBAI, MAHARASHTRA - 400023, INDIA |
- |
|
6 |
90227859 |
07/02/1986 |
20,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, MUMBAI,
MAHARASHTRA, INDIA |
- |
|
7 |
90230449 |
20/01/1986 |
7,500,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, MUMBAI,
MAHARASHTRA, INDIA |
- |
|
8 |
90284711 |
04/12/1985 * |
1,500,000.00 |
STATE IND. PROMOTION CORP. OF
TAMILNADU LIMITED |
NO 51-52 THOUSAND LIGHTS,
MADRAS, TAMIL NADU - 600006, INDIA |
- |
|
9 |
90227592 |
08/08/1996 * |
102,400,000.00 |
STATE BANK OF INDIA |
COMMERCILA BRANCH; JUSTICE
G.N. VAIDYA MARG, MUMBAI, MAHARASHTRA - 400023, INDIA |
- |
|
10 |
90227362 |
22/11/1974 |
22,500,000.00 |
UNITED BANK OF INDIA |
UNITED BANK BLDG, SIR P. MEHTA
RD, MUMBAI, MAHARASHTRA, INDIA |
- |
|
11 |
90227243 |
18/12/1968 |
28,000,000.00 |
UNITED BANKN OF INDIA LTD |
4; OLIVE GHAT STREET,
CALCUTTA, WEST BENGAL, INDIA |
- |
|
12 |
90227213 |
04/03/1967 |
15,000,000.00 |
THE BANK OF INDIA LTD |
70/80; MAHATMA GANDHI RD,
MUMBAI, WEST BENGAL, INDIA |
- |
|
* Date of charge modification |
||||||
REVIEW OF OPERATIONS
The business sentiments, confronted with the challenges of market conditions and slowdown in global demand, remained extremely challenging and the recessionary economic conditions led initial slowdown in sales growth. Thanks to the sustained efforts of the marketing team, improved marketing performance of the second half resulted into record sales and growth. The performance in terms of net working capital was affected by built-up of inventory and the profitability is significantly impacted by inflation led cost push in most of the operating areas. Directors are pleased to inform that in spite of challenging conditions, the Company has registered best ever performance in terms of sales growth over previous year.
The Company registered sales of Rs.10712.300 million as compared to Rs. 9560.800 million registering a record growth of 12.0 percent sales. Out of the total sales revenue of the Company for the year, 25.3 percent is contributed by exports. The increased cost of raw materials and inflationary rise in other expenses resulted into lowering of PBDIT margin before exceptional items from 17.7 percent to 14.6 percent. Net profit after accounting for exceptional items and tax is lower over the previous year. The Company remains focused to improve its core business and look for higher market share in the business segments in which it operates.
In view of prolonged litigation, the Company could not implement its project for manufacturing of Masterbatches at Ambernath, the site acquired by the Company in 2008 from MIDC.
SALE OF BUSINESSES
Clariant AG Switzerland, the ultimate Holding Company has announced that USA based SK Capital has agreed to purchase the business units textile chemicals, paper specialties and business line emulsions from Clariant and that this will include the transfer of the whole R and D, applications, sales and marketing organization along with production plants and sites worldwide.
Subject has production facilities for manufacture of textile chemicals and produces paper specialties and emulsion products at its Roha plant. The textile chemicals, paper specialties and emulsion businesses, included in dyes and specialty chemicals segment, together contribute about 35% of the net sales of the Company. The decision to sell the businesses including a manufacturing plant for textile products situated at Roha and other assets dedicated to the businesses under divestment, at a value to be arrived at by the professional valuers, will be considered by the Board and approval of shareholders will be sought at appropriate time in accordance with the requirements of the Companies Act, 1956. The Directors would like to assure its shareholders that given the present market conditions prevailing for the businesses under sale, the decision will be in the best interest of the Company and its shareholders.
MANAGEMENT DISCUSSION
AND ANALYSIS
FINANCIAL AND
OPERATIONAL PERFORMANCE
In spite of extremely challenging business environment, slowdown in global economic growth and the recessionary economic conditions, the Company for the year 2012 registered a record growth of 12.0% in sales over previous year.
Of the total sales revenue of the Company for the year, 25.3% is contributed by exports. In view of rising cost of raw materials and inflation led upsurge in other operating costs, profit before depreciation, interest, exceptional items and tax (PBDIT) is lower as compared to the previous year. After considering the exceptional income including those arising from sale of premises in the current year and sale of land and infrastructure at Balkum, Thane in the previous year, the profit after tax (PAT) is lower from Rs. 3040.400 million to s. 1013.000 million. The following ratios reflect the financial performance for the year in relation to the previous year.
The Company remains a zero debt company with no long-term borrowings. The rating for the Company is rea3rmed ‘CARE AAA’ for long term bank facilities and ‘CARE A1+’ for short term bank facilities and this endorses the confidence on the financial standing of the Company. Short-term bank borrowings are restricted to the need based working capital requirements. The business environment has impacted the net working capital of the Company as compared to previous year. Inspite of challenging environment, the year-end ratio of inventory to sales of 15.2%, receivables to sales of 13.8% and net working capital to sales of 11.8% is one of the best in the specialty chemical industry. Net cash flow from operating activities during the year was Rs. 765.768 million Funds surplus to the operational needs have been prudently invested to earn reasonable returns with a high degree of safety. A sum of Rs.2269.800 million (previous year Rs. 2655.100 million) stands invested in debt schemes of mutual funds at the end of the year.
During the year, all the plants had smooth operations and the capacity utilisation was better than the previous year.
BUSINESS SEGMENTS AND
PERFORMANCE
In accordance with the Accounting Standard-17 notified by Companies (Accounting Standards) Rules, 2006 and based on characteristics of products, production processes and the class of customers, and in view of sale of its intermediates business in the past, the Company has reclassified its range of products into two reportable business segments as under :
1. PIGMENTS AND
COLORS:
The business segment earlier named as Intermediates and colors is renamed as Pigments and Colors to correctly reflect the product group, as the Company is no more engaged in intermediates business after divestment of its Diketene and Intermediate business in 2010. The segment now comprises of pigments, additives and masterbatches.
Clariant is a leading global provider of organic pigments, pigment preparations and dyes and based on extensive experience and expertise in color, the pigment business helps to provide vibrant and safe colors to the world. The product portfolio meets the demands for key market segments of coatings, plastics and special applications and printing that include automotive, industrial, decorative and architectural paints and coatings, plastic applications including films, fibers, detergent coloration, cosmetics, aluminum finishing, traditional and non impact printing and electronic displays.
Clariant’s additives create value by improving the e3ciency, safety, protection, durability and appearance of products such as plastics, coatings and printing inks. Clariant is a leading provider of flame retardants, waxes and polymer additives and serves customers across a wide range of applications and sectors including electronic, construction and automotive.
Clariant is a global leader in masterbatches for color, additive concentrate and innovative performance solutions for plastics. Its customers span a broad range of markets that include packaging for home, personal care, food, drink and industrial; consumer goods appliances, electrical, sports, toys and construction; medical devices and pharmaceutical packaging; carpets, non-woven textiles and sports apparel; interior and exterior parts, engine and components for automotive sector.
The manufacturing facilities and fully equipped technical service laboratories provide application support to the customers in adjusting to the changing needs of end users. The Company is a pioneer in the promotion of lead and chrome free pigments and in spreading the awareness on use of non-halogenated flame retardants. The capability of the Company to develop and produce new masterbatches with accuracy and consistency has helped in achieving high growth rates over the period.
The total sales under this segment comprises of pigments, additives and masterbatches. The ratio of domestic sales to export sales was 65:35. The segment contributes 39% to the total sales and registered a growth of 10.7% over the previous year. The Company could not implement its project to set up the green field manufacturing facility for masterbatches in MIDC, Ambernath due to ongoing litigations.
2. DYES AND SPECIALTY
CHEMICALS:
The dyes and specialty segment includes dyestu.s, synthetic resins, binder materials, functional e.ects and coatings, auxiliaries and chemicals, comprising of specialty chemicals, emulsions and dyes for the textile, leather and paper industry and performance chemicals for personal care and industrial applications.
Clariant is a leading producer of dyes and chemicals for the textile industry and meets the frequently changing specifications of brands and mills in apparel andfashion, automotive, home and technical textiles. Clariant provides dyes and specialty chemicals for pre-treatment, dyeing, printing and finishing of textiles, optical brighteners and chemicals for functional treatment of technical textiles and thus plays a key role throughout the entire textile supply chain. The Company o.ers solutions including colour trends analysis, color matching technology combined with processing efficiency, nanotech effects, environment friendly solutions and unique concepts that add to the ability of customers to fast move their products to markets and stay ahead of competition.
Clariant is a leading provider of chemicals, technical services and solutions over the entire value chain of leather production. From beamhouse to finishing, Clariant provides high quality and environment friendly leather processing chemicals and services and world class knowledge of leather upgrading and chrome free tanning solutions. Their customers in the shoe, automotive, furniture and garment segments benefit from customized technical solutions and expertise in performance leather and environmentally compatible solutions.
Clariant aims to provide knowledge and expertise in the management of whiteness, coloration, special coatings and strength for all kinds of paper and paper board, offering the most cost effective product choices and solutions. Key markets for Clariant products include printing and writing copy papers, coated papers and board, tissue papers, recycled papers, newsprint, packaging and specialized applications.
Clariant’s emulsions business is a major supplier of solutions in water based emulsions/polymer based dispersions. Being water based, the products are more suitable with less impact on environment avoiding the use of solvents. Key market areas for emulsions are decorative interior and exterior paints, primers, varnishes, anti-corrosion and industrial applications, concrete applications, roofing, tiling sealants and primers in construction, wood, paper, lamination, packaging and pressure sensitive adhesives and wide range of functional effects and coating applications for textiles, leather and paper.
Industrial and Consumer Specialties business is a leading provider of specialty chemicals and ethylene oxide derivatives for industrial and consumer care applications. With a strong focus on ecologically sustainable solutions, their key market segments include additives for concrete and mortar, dispersing agents, defoamers, biocides and emulsifiers for emulsion polymerization, ingredients for skin and hair care cosmetics, wet wipes and pharmaceutical applications, ingredients for household and industrial cleaning solutions, ingredients for hydraulic, metal working and other performance fluids, special solvents and fluids for heat transfer, gas scrubbing, formulations for fungicides, herbicides and seed treatments.
With a wide range of products, the strong brand image of Clariant, knowledge and expertise of providing technical services and solutions in product development and application process to meet the needs of end users, the Company is well positioned in the business segment. The total sales under the dyes and specialty chemicals segment comprises of mainly textile chemicals, leather services, paper specialties, emulsions, industrial and consumer specialties. The ratio of domestic sales to export sales was 81:19. The segment contributes 61% to the total sales and registered a growth of 12.9% over the previous year.
OUTLOOK,
OPPORTUNITIES AND CHALLENGES
The deceleration in growth, high inflation and twin deficits (current account deficit and trade deficit) are major challenges for the Indian economy. The real GDP grew by 5.4% year on year in the first half of the current fiscal year, much lower than the average growth rate of about 8% achieved in last decade. Manufacturing sector has been hit by weak domestic demand, consumption as well as investment, and sluggish exports owing to the fragile global economic scenario. The advanced estimates for GDP peg manufacturing growth at 1.9 per cent in 2012-13, the slowest in the past 14 years. The ability of Indian economy to return to its pre-crisis growth era in the absence of fully conducive global environment has been severely tested over last couple of years. Sub 5% GDP growth rate could be a cause of concern for an economy widely tipped to become the next global growth engine after China.
The domestic chemical sector in general and the specialty chemical sector in particular are witnessing the double impact of sluggish domestic demand and increased competition from global and domestic players. The Indian chemical industry was witnessing deceleration in the past few years. The production index for chemicals and products recorded a growth rate of 3.46% during April-December, 2012 compared to 0.17% fall recorded during the same period a year ago.
Despite the current economic conditions and challenges, since GDP is expected to rise from the current level, the growth potential for Indian economy over the next few years is likely to be better. India’s urban population is expected to grow substantially and increase in income levels; increasing awareness on quality, fashion and trend, adoption of new product specifications and environmental standards is expected to result in increased need for better products and services resulting into consumption-led double-digit growth in key end markets over the next decade. Chemicals constitute more than 13% of India’s total exports and India has strong presence in the export market in the dyes, Pharma and agro chemical segments.
Currently specialty chemicals account for lesser share in Indian chemicals industry as compared to global scenario. The per capita consumption of such chemicals is also very low as compared to global levels. For example the per capita consumption of colorants in India is only 50 gm. vis-a-vis the world average of 250 gm. The industry shows comparative promise when compared to the advanced countries and has the potential to emerge as a major manufacturing hub for the global market. The specialty chemical segment which caters to several key applications will be increasingly important for India and with expanding economic growth and per capita income; it is poised to grow more than the economic growth. As the economy develops, India will need to regulate products more stringently, and strengthen consumption standards, which in turn will promote increased usage of specialty chemicals. Consumption standards are policies implemented by the government to promote the safe use of products. These standards are necessary for both improving society’s standard of living and enhancing consumer safety. Most developed countries (e.g. the US, Germany) have implemented stringent consumption standards across various end-use markets. India still uses enamel paints with high VOC content. Mandating the usage of water based paints will help ensure health and safety of consumers, and encourage the consumption of higher cost, water based paints. This will result in consumption-led double-digit growth in key end markets over the next decade and an increased need for better products and services. Based on the assessment of future demand of specialty chemicals, this segment is expected to reach value of $38 billion by the end of 12th Five Year Plan (2012-2017). Driven by potential growth in end-use industries, availability of large pool of technical man-power, scientists and researchers, the segment is poised for substantial growth and offers immense potential for investment as well as employment generation. The REACH and other European legislation o.er unique opportunities to the industry players to register themselves, innovate and move up the value chain and compete effectively with global players both in the domestic and export markets and bring the Indian specialty chemical industry on the global map while meeting the needs of enhanced quality of life for growing affluent population of India.
Dyes and Pigment is the major sub-segment of the Indian colorants industry. Global demand for dyes and pigments is expected to increase from $14.40 billion in 2010 to $16.2 billion by 2014. This is likely to have a direct impact on the Indian dyes and pigments industry as majority of the dyes and pigments produced in the domestic market are exported. Majority of global dyes and pigment manufacturers are shifting their operations to India and China, as REACH regulation is increasing their cost of production in majority of the European countries. Decreasing profitability of the manufacturers is a major concern of the colorants industry in India.
India is one of the major participants in the global paints and coatings industry. The market size for this sector is about $3.40 billion. The Indian paints industry is consolidated where the organised sector accounts for about 80 percent of the market share. The industry is classified into decorative paints and industrial paints, which accounted for 70 percent and 30 percent of the total paints industry revenues, respectively in 2010. The average annual growth rate of the paints industry was 13.5 percent between 2005 and 2010 and is expected to improve in coming years.
Per capita consumption of paints in India is about 1.3 kg compared to 38 kg in Singapore and 26 kg in the United States. The demand for paints is strongly backed by growth of the automotive industry which is expected to have an average annual growth rate of 15 percent between 2010 and 2014. The residential, commercial real estate market is expected to grow rapidly, as 100 percent FDI is allowed in this industry. Further, there is increasing demand for water-based paints and companies are introducing lead-free and low-volatile organic compound products, which are environment friendly. Heavy metal pigments are getting replaced with organic pigments in premium paints. Industry outlook for paint, plastics, inks and special applications remains good. The challenges in this segment are from rising costs of utilities whereas customers are increasingly becoming sensitive to price rise. Clariant has positioned itself as preferred supplier of pigments, pigment preparations, additives and intermediates to major paint, coatings and ink manufacturing companies in the country and is well equipped to meet the requirements.
The per capita use of plastics in India may still be quite low compared to the developed countries; the Indian plastic industry is one of the largest in the world and promises a steady double digit growth for next few years. The overall plastic consumption in India per person has gone up to 8 kg as compared to 40 kg in developed countries. Demand from automobile sector and white goods industry is huge despite the economic slowdown and the use of plastic components in auto industry, agriculture and many other industries is expected to increase significantly. In view of strong potential for growth of the industry, the specialty polymer chemicals segment is expected to grow from current market share of $ 2.3 billion to $ 5.3 billion by 2017. With focus on global standards, Clariant addresses Indian plastics sector’s push to create innovative, safer, and environmental compatible products. It’s specialty chemicals and master batches provides broad portfolio of high-quality, cost-effective pigments, and performance additives and its innovative products provide cost-e3cient processing, advanced functionality and aesthetic possibilities to meet the challenges of a wide range of segments including food and cosmetics packaging, electronic and electrical (E&E), infrastructure, agriculture, medical and pharmaceutical.
The dyes segment is highly fragmented in India due to excise concession provided for the market participants. This segment has an inherent element of value addition to a wide variety of products like textiles, leather, paper etc. The Indian textile industry which accounts for about 4% of Gross Domestic Product (GDP), accounted for 14 percent in Index of Industrial Production in 2010 and acts as one of the main drivers of the economy. The industry consumes about 80 percent of the total dyes consumed in India. The growth of the dyes sector thus depends considerably on the performance of this industry. Clariant is a major player in the filed of dyes and chemicals and plays a key role in providing innovative and sustainable solutions throughout the entire supply chain and all segments from fiber to finishing of textiles and retanning to finishing of leather. Clariant provides knowledge and expertise in the management of whiteness, coloration, special coatings and strength and o.er products to improve optical and functional properties of all kinds of paper and board.
The industrial, home and personal care market in India is expected to grow at a rapid pace surpassing the growth of other segments in this sector although competitive pressure has intensified. With growing affluence, Indian consumers are able to spend more on hygiene and personal care products. Increasing consumption is driving demand for wide range of cosmetic chemicals, health care products as well as hygiene products using specialty chemicals, polymers and oleo chemicals. This goes along with an increased customer demand for chemical ingredients that provide enhanced functionality and multiple benefits at lower prices. To meet the demands, the Company has established new state of the art consumer care and crop protection laboratories and enhanced its biocide laboratory to tailor its products specifically for the local market requirements.
The major challenge that the Indian chemical industry continue to face is the perception that it affects the environment negatively. Though there are other industries, which are equally or more polluting, colorant industry is considered to be the most polluting due to visibility of color. The industry is viewed with misapprehensions on the pollution and sustainability fronts and thus safety, health and environment protection issues have become the major talking point in the Indian chemical industry. The existing effluent discharge norms need to be re-evaluated. Inspite of Indian chemical sector taking a significant lead over other sectors, in R&D spending and utilisation, it lags behind other emerging economies. While chemical industry addresses growing need for materials required by different sectors, the industry employs highly complex manufacturing processes that involve handling of often toxic and hazardous chemicals. The process being energy intensive, the importance of safety, security and environmental protection cannot be underestimated. There is a lack of ideal, dedicated and adequate availability of land at suitable locations. Inadequate availability of water is a limiting factor as water is an important component in the manufacturing of colorants. Availability of power is inadequate and cost is very high. Various government duties and levies add to the cost substantially. Unavailability of good quality roads with excellent connectivity to ports is a severe constraint. Port facilities and long turnaround time affect efficiency and competitiveness of the specialty chemical industry. Spending on research and development (R and D) is the lowest by India’s specialty chemical industry. For a nation aspiring to be a major manufacturing center for specialty chemicals, there is an urgent need to increase R&D activities. Availability of feedstock is very poor and the industry is import dependent for many dyeinter mediates. The export performance of specialty chemicals so far has been good. However, regulations like REACH may impact export performance.
The Indian chemical industry can deliver on an accelerated growth phase, provided a clearly defined vision along with a srategic roadmap is developed to enable it. If this is not done, they may see the growing market increasingly being served through manufacturing done outside India. The various segments of the chemical industry (such as organic chemicals, specialty chemicals, chlor-alkali, pesticides, colorants and alcohol based chemicals) have their own unique set of challenges. The industry can grow only if these individual segments overcome their challenges and move swiftly along the growth path.
CONTINGENT LIABILITIES
AND COMMITMENTS
(Rs. In Millions)
|
|
As on 31.12.2012 |
As on 31.12.2011 |
|
CONTINGENT
LIABILITIES AND COMMITMENTS (to the extent not provided for) |
|
|
|
(a) Contingent
liabilities : |
|
|
|
(i) in respect of income tax matters |
|
|
|
- decided against the Company, in respect of which the Company is in further appeal |
76.305 |
116.979 |
|
- decided in favor of the Company against which the department is in appeal |
59.375 |
38.919 |
|
(ii) in respect of sales tax/VAT matters |
476.510 |
495.864 |
|
(iii) in respect of excise/service tax matters |
106.254 |
89.211 |
|
(iv) in respect of bills of exchange discounted with banks (since realised Rs. 219.857 million [Rs.84.051 million]) |
220.022 |
134.813 |
|
(v) Other matters in dispute |
0.225 |
0.225 |
|
(vi) Disputed labour matters - Amount not ascertained. |
|
|
|
In respect of items (i) to (iii), (v) and (vi) future cash outflows in respect of contingent liabilities is determinable only on receipt of judgements pending at various forums/authorities. |
|
|
FIXED ASSETS:
· Land Freehold
· Land Leasehold
· Building
· Plant and Machinery
· Office Equipment
· Furniture and Fixture
· Vehicles
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE THREE/NINE MONTHS ENDED SEPTEMBER 30, 2013
(Rs. In
Millions)
|
|
|
|
3 months |
Preceding 3 months |
9 months |
|
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1. |
Income from
Operations |
|
|
|
|
|
|
(a) |
Net sales / Income from operations (Net of excise duty) |
3467.400 |
3184.600 |
9426.700 |
|
|
(b) |
Other operating income |
84.700 |
90.200 |
245.900 |
|
|
Total Income from
operations (net) |
3552.100 |
3274.800 |
9672.600 |
|
|
2. |
Expenses |
|
|
|
|
|
|
(a) |
Cost of materials consumed |
1391.500 |
1488.800 |
4301.300 |
|
|
(b) |
Purchase of stock-in-trade |
737.300 |
607.200 |
1876.200 |
|
|
(c) |
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
178.100 |
(23.200) |
(2.000) |
|
|
(d) |
Power and fuel |
142.900 |
131.300 |
397.500 |
|
|
(e) |
Employee benefits expense |
250.100 |
328.600 |
800.400 |
|
|
(f) |
Depreciation and amortisation expense |
61.900 |
60.000 |
179.000 |
|
|
(g) |
Other expenses |
435.400 |
366.000 |
1140.300 |
|
|
Total expenses |
3197.200 |
2958.700 |
8692.700 |
|
|
3. |
Profit from operations
before other income, finance costs and exceptional items (1-2) |
354.900 |
316.100 |
979.900 |
|
|
4. |
Other income |
27.900 |
40.600 |
120.700 |
|
|
5. |
Profit from
ordinary activities before finance costs and exceptional items (3+4) |
382.800 |
356.700 |
1100.600 |
|
|
6. |
Finance Costs |
3.200 |
3.200 |
13.700 |
|
|
7. |
Profit from
ordinary activities after finance costs but before exceptional items (5-6) |
379.600 |
353.500 |
1086.900 |
|
|
8. |
Exceptional items |
1267.300 |
- |
1267.300 |
|
|
9. |
Profit from
ordinary activities before tax (7+8) |
1646.900 |
353.500 |
2354.200 |
|
|
10. |
Tax expense (Including tax on exceptional items) |
407.000 |
112.300 |
625.500 |
|
|
11. |
Net Profit from
ordinary activities after tax (9-10) |
1239.900 |
241.200 |
1728.700 |
|
|
12. |
Paid up equity share capital (Face value of Rs.10/- each) |
266.600 |
266.600 |
266.600 |
|
|
13. |
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
|
14. |
Earning per share (of Rs.10/- each) Basic & Diluted (in Rs.) (Not annualised) |
46.51 |
9.05 |
64.84 |
|
|
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
1. |
Public shareholding |
|
|
|
|
|
|
- |
Number of shares |
9758665 |
9758665 |
9758665 |
|
|
- |
Percentage of shareholding |
36.60 |
36.60 |
36.60 |
|
2. |
Promoters and
promoter group shareholding |
|
|
|
|
|
|
a) |
Pledged / Encumbered |
- |
- |
- |
|
|
b) |
Non-encumbered |
|
|
|
|
|
- |
Number of shares |
16902080 |
16902080 |
16902080 |
|
|
- |
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
- |
Percentage of shares (as a % of the total share capital of the company) |
63.40 |
63.40 |
63.40 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
- |
|
|
Received during the quarter |
5 |
|
|
Disposed of during the quarter |
5 |
|
|
Remaining unresolved at the end of the quarter |
- |
PRESS RELEASE
CLARIANT LAUNCHES NEW
RANGE OF PERSONAL CARE PRODUCTS IN INDIA
· Presents exciting Personal Care product ranges that are part of the company’s new Secret Code of Beauty.
· Plantasen® is an innovative range of natural ingredients that include plant-based actives, unique emulsifiers and a broad selection of emollients ranging from vegetable oils and natural butters to alternatives to silicones, petrolatum and lanolin.
· Showcases the newly launched Nipaguard Zero, Aristoflex Velvet, and Perlogen.
Mumbai - India, 28 October 2013 – Clariant, a world leader in specialty chemicals, introduced innovative Personal Care product ranges that are part of the company’s new Secret Code of Beauty concept to the Indian market. At the product launch last week, Dr. Alexander Snell, Head Business -Industrial and Consumer Specialties in India and Ms. Cloe Cibil LeMeudec, Application Development (Global), Clariant International shared indepth information on the benefits of these new products and the principles of Clariant’s Secret Code of Beauty concept.
The launch was attended by leading companies from the personal care and hygiene industry. These included Marico, Emami, Reckitt Benckiser, L‘Oreal India, Johnson and Johnson India amongst others.
“Plantasen is a perfect fit in the Clariant portfolio for the Indian market because it is a pure vegetable based offering. An example is the new launch of Olive Squalane which is 100% plant based and not of animal origin. Another example is the new Natural Emulsifier HP10 which provides performance enhancement like stability and strengthen skin barrier function using the latest liquid crystal technology.
We have now unlocked the Secret Code of Beauty and are excited to share these with our customers. Our products are driven by a strong research base and we at Clariant will continue to deliver innovative and advanced products that play a key role in enhancing our customers manufacturing processes that add value to their end products.,” said Dr. Alexander Snell, Head Business Unit Industrial & Consumer Specialties, Clariant Chemicals (India) Limited.
Below are the products launched in India today and their features:
Plantasens® natural ingredients surprise the senses naturally. The product range includes plant-based actives, unique emulsifiers, and a broad selection of emollients ranging from vegetable oils and natural butters to alternatives for silicones, petrolatum and lanolin. Most Plantasens® products are also Ecocert® approved, satisfying the requirements to develop natural cosmetic products.
CLARIANT CHEMICALS
(INDIA) LIMITED RECEIVES CGMP CERTIFICATION FOR ROHA PLANT
Mumbai - India, 03 October 2013 – The Roha Plant of Clariant Chemicals (India) Ltd (CCIL) recently received the global ISO 22716 Cosmetics Good Manufacturing Practice (cGMP) certification. The accreditation signifies the plant’s commitment to ensure dependable products, processes and service at the local level. SQS, ISO 22716 is a leading international testing and certification body which ensures the delivery of products of the highest possible quality by the cosmetics sector and is regarded as the reference standard in the cosmetics industry.
“The Roha site is a strategic site for India, helping us accelerate our business and support R&D to cater to customer demands locally. This recognition has reaffirmed our position in the market and we look forward to strengthening our market presence through execllence ,” stated Dr. Deepak Parikh, Vice-Chairman and Managing Director, Clariant Chemicals (India) Limited.
Dr. Alexander Snell, Head of Industrial and Consumer Specialties (ICS) Business, Clariant Chemicals (India) Limited said, “In addition to Roha plant’s dedication to consistent product quality, this accomplishment reiterates our commitment to being a leading partner in the personal care industry through globally consistent products and processes that will support efficient product development. It will also give us an opportunity to grow by localizing the production of various cosmetic products and cater to the needs of our key customers in India.”
cGMP Certified, Roha plant, is now compliant with the international auditable standards which specifies requirements for cosmetic product safety management. In continuation of personal care key raw material manufacturing, the production plant is now ready to support the business at domestic and global level and becomes the third such site in APAC region.
Besides Tangerang in Indonesia site, currently six of Clariant’s cosmetics ingredients production sites are endorsed within the certification – Gendorf (Germany); Mount Holly West in North Carolina(USA); Suzano (Brazil); Tarragona (Spain); Zhenjiang (PR China) and Shizuoka (Japan).
CLARIANT CHEMICALS
(INDIA) LIMITED ANNOUNCES INTENT TO ACQUIRE MASTERBATCH PRODUCER PLASTICHEMIX
INDUSTRIES
· Acquisition considered at Rs.13.500 millions
· Post the acquisition, Clariant Chemicals (India) Limited would be the largest specialty masterbatches business producer in India and aims to double its business in the next five years
Mumbai, December 16, 2013: Clariant Chemicals (India) Limited, a leader in specialty chemicals, today announced intent to acquire Plastichemix Industries, a pioneer in the masterbatches business in India, with production facilities at Rania, Kalol and Nandesari in Gujarat. Plastichemix Industries is a leading supplier of Black, White, Additive, Filler and Colour masterbatches, Flushed Pigments & Mono-Concentrates and Engineering Plastics Compounds. The deal closure is planned for Q1, 2014.
Dr. Deepak Parikh, Vice-Chairman and Managing Director, Clariant Chemicals
(India) Limited said, “Clariant continues to reshape its portfolio and maintain profitability in its core businesses by exploring organic and inorganic business opportunities. This acquisition reinforces our long term growth strategy in India and will further elevate our market position. Clariant sees a bright future for masterbatches business in India and we are happy to forecast double digit growth in the near future creating value for all our stakeholders.”
Mr. Sandeep Puri, Vice President - BU Masterbatches, Clariant Chemicals (India) Limited
said, “It is a proud moment for Clariant, who after this acquisition will be the largest player in the specialty masterbatches business in India. With a stronger product portfolio and enhanced customer base, we would be able to service an extensive network. We will also introduce an upgraded
CLARIANT UNCOVERS
‘THE SECRET CODE OF BEAUTY’ AT HPCI 2014
· Personal Care innovations to excite and indulge the senses
· Clariant's new Secret Code of Beauty concept designed to meet market needs
·
Mumbai, Feb 5, 2014 – Clariant, a world leader in specialty chemicals, showcased its enticing and inspiring range of products for skin and hair care at the HPCI 2014 in Mumbai. Developed in line with Clariant’s new Secret Code of Beauty concept, each product emerges from the unique combination of five codes focused on helping customers achieve new levels of success in Personal Care. Clariant’s portfolio incorporates its passion for sensorial solutions and sustainability, deep consumer and trend insights, innovation power and market expertise.
“Clariant’s Secret Code of Beauty is driven by consumer needs. All the innovations under this code are based on insights and experiences that help us offer Personal Care manufacturers with world class products. Clariant’ s continuous focused and revolutionary approach has helped us enhance our customers’ manufacturing processes to add value to their end products,” comments Dr. Alexander Snell, India Head for Business Unit Industrial and Consumer Specialties at Clariant Chemicals (India) Limited.
Some of the key products that were showcased included:
Aristoflex® Velvet adds a soft, velvety skin feel to skin care formulations. A finalist in `Cosmetics & Toiletries Innovation Award in 2013, the new member of Clariant’s versatile Aristoflex polymer product line is the ultimate answer to the trend toward luxury, providing a true sensorial experience. It is easy to use and brings unique benefits to a wide range of applications.
Perlogen® creates the sparkle in formulations. The cold processable, liquid pearlizing concentrate for rinse-off products creates an intensive silky shine in shampoos, liquid hand soaps, nourishing conditioners and moisturizing washes. Its well defined particle size helps achieve high brilliance of pearlescent even at low concentrations.
Genagen® SC blends are cold processable and offer excellent foam-building. The two grades of easy to use blends are based on a unique and patented technology to upgrade a broad variety of formulations. They improve opacifier stability and shorten production time.
CLARIANT CHEMICALS
(INDIA) REPORTS NET LOSS OF RS 61.000 MILLIONS IN THE DECEMBER 2013 QUARTER
Sales decline 4.33% to Rs 270.53 crore
Net loss of Clariant Chemicals (India) reported to Rs 61.000 millions in the quarter ended December 2013 as against net profit of Rs 220.500 millions during the previous quarter ended December 2012. Sales declined 4.33% to Rs 2705.300 millions in the quarter ended December 2013 as against Rs 2827.600 millions during the previous quarter ended December 2012.
For the full year, net profit rose 64.63% to Rs 1667.700 millions in the year ended December 2013 as against Rs 1013.000 millions during the previous year ended December 2012. Sales rose 13.25% to Rs 12132.000 millions in the year ended December 2013 as against Rs 10712.300 millions during the previous year ended December 2012.
Particulars Quarter Ended Year Ended Dec. 2013Dec. 2012% Var. Dec. 2013Dec. 2012% Var.Sales270.53282.76 -4 1213.201071.23 13 OPM %1.6312.09 -9.9612.79 - PBDT9.8437.02 -73136.98154.70 -11 PBT4.2931.40 -86 113.53133.10 -15NP-6.1022.05 PL 166.77101.30 65
%20LIMITED%20-%20255392%2005-Mar-2014_files/image012.gif){kind=small}
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] 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. 61.90 |
|
|
1 |
Rs. 103.26 |
|
Euro |
1 |
Rs. 85.13 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
YES |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
74 |
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.