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Report No. : |
334842 |
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Report Date : |
04.08.2015 |
IDENTIFICATION DETAILS
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Name : |
BHUTAN CARBIDE & CHEMICALS LIMITED |
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Registered Office : |
TCC Complex Building, Post Box : 103, Phuentsholing |
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Country : |
Bhutan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
25.05.1994 |
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Com. Reg. No.: |
3392 |
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Legal Form : |
Limited Concern |
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Line of Business : |
Subject was conceived as a joint Venture between the Royal Government of Bhutan and Tashi Commercial Corporation, keeping in mind the abundant availability of hydel power, indigenous raw material and a ready market for its products. |
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No. of Employee : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Bhutan |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
BHUTAN - ECONOMIC OVERVIEW
Bhutan's economy, small and less developed, is based largely on hydropower, agriculture, and forestry, which provide the main livelihood for more than half of the population. Because rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive, industrial production is primarily of the cottage industry type. The economy is closely aligned with India's through strong trade and monetary links and is dependent on India for financial assistance and migrant laborers for development projects, especially for road construction. Multilateral development organizations administer most educational, social, and environment programs, and take into account the government's desire to protect the country's environment and cultural traditions. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Complicated controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment. Bhutan’s largest export - hydropower to India - could spur sustainable growth in the coming years if Bhutan resolves chronic delays in construction. Bhutan currently taps only 5% of its 30,000-megawatt hydropower potential and is behind schedule in building 12 new hydropower dams with a combined capacity of 10,000 megawatts by 2020 in accordance with a deal signed in 2008 with India. The high volume of imported materials to build hydropower plants has expanded Bhutan's trade and current account deficits. However, Bhutan and India in April 2014 agreed to begin four additional hydropower projects, which would generate 2,120 megawatts in total. A declining GDP growth rate in each of the past three years in the absence of new hydropower facilities has constrained Bhutan’s ability to institute economic reforms. Bhutan inked a pact in December 2014 to expand duty-free trade with Bangladesh, the only trade partner with which Bhutan enjoys a surplus.
|
Source
: CIA |
BHUTAN
CARBIDE & CHEMICALS LIMITED
TCC
Complex Building
Post Box : 103, Phuentsholing, Bhutan.
Phone No. : +975-5-252246,252420 (PABX)
Fax : +975-5-252112
Email : bccl@druknet.bt
Pasakha, Bhutan
Phone No. : +975-5-261100/261122 (PABX)
Fax : +975-5-261120
It
is a Limited Concern Incorporated at
Bhutan. INC No. 3392 of 25.05.1994
Chairman:
Dasho Topgyal Dorji
Managing Director: Dasho
Wangchuk Dorji
Chief Executive:
K.Koti.Reddy
Bhutan
Bank Ltd. Phontsholing, Bhutan
B.
Chand & Co., Bhutan
Bhutan
Carbide & Chemicals Limited was conceived as a joint Venture between the
Royal Government of Bhutan and Tashi Commercial Corporation, keeping in mind the
abundant availability of hydel power, indigenous raw material and a ready
market for its products.
The
project cost was Nu. 300 million. A part of the same was founded by the World
Bank and Kuwait Fund for Arab Economic Development (KFAED). The project was
completed within envisaged cost and time frame and went into commercial
production in mid 1988.
In
1990-91, the Royal Government of Bhutan dis-invested its share and at present
Tashi Group holds 51% equity and the balance is held by public and financial
institutions like Bank of Bhutan, Royal Insurance Corporation of Bhutan, bhutan
National bank etc.
The
company has consistently performed well in terms of production, sales,
profitability and dividends, as well as repayment of international loans. Capacity
utilization has been consistently over 110%. The shareholders confidence in the
company is reflected in its share price quoted in the Royal Securities Exchange
@NU. 5000/- per share, the face value being nu. 100/- per share. BCCL seeks to
reward the shareholders through dividend and capital appreciation. The success
of BCCL through a decade has been unique, the promise is even grater. We are a
young company, vibrant, hopeful, full of energy and booking forward eagerly to
the challenges af tomorrow. A even bright future awaits BCCL in this
millennium.
The
company has taken up its expension/diversification plans with the relevant
Government authorities for necessary clearance. Royal Government’s approval is
still awaited. BCCL believes that good profitability comes from setting quality
standards and establishing competitive position. Capital and operating cost
competitiveness, capital efficiency and good quality are the key operational
themes for the company. BCCL therefore, believes that it is geared to perform
well, even during periods of down-turn in the chemical industry business cycle.
BCCL’s proposed expension plans are in line with Royal Government’s objectives
of encouraging growth, prosperity and industrialization in the Royal Kingdom of
Bhutan. The company runs a school at Pasakha, which caters to 1100 children and
is poised for increased activities in a phased manner. The company also runs a
dispensary at Pasakha and dispensary general medicines to take care of basic
health requirements.
Calcium Carbide
The
main raw materials used to manufacture Calcium Carbide are Limestone and
Carbonaceous materials, as reluctant, such as Charcoal, Petroleum Coke, Low Ash
metallurgical Cock and Coal. Limestone is claimed to Lime in a double inclined
Lime Kiln and transferred to Furnace Day Bins. Manufacture of Calcium Carbide
takes place in a three phase submerged electric arc furnace imported from
Norway. There are three movable Soderberg electrodes to carry power to the
Furnace. These are fixed at the vertices of a triangle. Raw materials are fed
to the Furnace through a material handling system. Inside the Furnace smelting
of raw materials take place at a temperature of 2000’ Centigrade and Calcium
Carbide is formed in a molten state. This molten Carbide is tapped out
intermittently and collected in cash iron pans. After cooling, it is crushed
and packed in airtight steel drums. Calcium Carbide is used in the manufacture
of Acetylene Gas for welding metals, De-sulphurizing Compound Acetylene Black,
P.V. Chloride, Calcium Cynamide, Tri-Chlora-ethylene & Polyvinyl Acetate.
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Authorized Share Capital |
:
|
Nu.
5,000,000 divided into 500,000 Equity Shares of Nu. 10/- each. |
|
Issued, Subscribed & Paid Up Capital |
: |
Nu.
2,616,680 divided into 261,668 Equity Shares of Nu. 10/- each. |
|
Face Value |
: |
Nu.
10/- each. |
|
Last AGM |
: |
July
15, 2013 |
Balance Sheet
(Amount in Nu Mln.)
|
Particular |
March 31, 2013 |
March 31, 2012 |
|
Sources of Funds |
||
|
Share
Capital |
2.62 |
0.59 |
|
Reserves
& Surplus |
13.56 |
3.40 |
|
Unsecured Loans |
2.67 |
4.30 |
|
Deferred Tax
Liability (Net) |
0.01 |
0.01 |
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Total
Liabilities |
18.86 |
8.30 |
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Application
Of Funds |
||
|
Gross
Block |
1.28 |
0.88 |
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Less: Depreciation |
0.43 |
0.24 |
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Net
Block |
0.85 |
0.64 |
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Current
Assets, Loan and Advances |
||
|
Inventories |
30.24 |
22.01 |
|
Sundry Debtors |
10.84 |
9.63 |
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Cash And Bank Balances |
0.14 |
0.82 |
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Loans and Advances |
2.49 |
1.31 |
|
|
43.71 |
33.77 |
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Less
: Current Liabilities & Provisions |
||
|
Current
Liabilities |
23.56 |
25.09 |
|
Provisions |
2.18 |
1.06 |
|
|
25.74 |
26.15 |
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Net
Current Assets |
17.97 |
7.62 |
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Miscellaneous
Expenditure |
0.04 |
0.04 |
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Total
Assets |
18.86 |
8.30 |
|
Name : |
Mr. Gardaman Rai |
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Designation : |
Senior Manager (Finance) |
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Contact No.: |
00975-5-252296 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.96 |
|
|
1 |
Rs.99.93 |
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Euro |
1 |
Rs.70.16 |
INFORMATION DETAILS
|
Information
Gathered by : |
PPT |
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.