MIRA INFORM REPORT

 

 

Report No. :

334206

Report Date :

30.07.2015

 

IDENTIFICATION DETAILS

 

Name :

INDOKEM LIMITED

 

 

Formerly Known As :

KHATAU JUNKER LIMITED

 

 

Registered Office :

Khatau House, Plot No. 410/411, Mogul Lane, Mahim, Mumbai – 400016, Maharashtra

Tel. No.:

91-11- 61236767 / 61236711

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

22.12.1964

 

 

Com. Reg. No.:

11-013088

 

 

Capital Investment / Paid-up Capital :

Rs. 244.972 Million

 

 

CIN No.:

[Company Identification No.]

L31300MH1964PLC013088

 

 

IEC No.:

Not  Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not  Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged into deals in dyes, sizing chemicals and auxiliaries used in Textile industry.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 320000

 

 

Status :

Moderate

 

 

Payment Behavior :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Indokem limited was established in 1946, further it was incorporated on 22nd December 1964. It is old established company having moderate track record.

 

The rating assigned to Indokem limited are primarily constrained by the weak financial risk profile marked by declining and low profitability margins, leveraged capital structure and low debt coverage indicators.

 

The rating are also further constrained by its modest scale of operations, working capital intensive nature of business operations,  exposure to raw material price volatility and foreign exchange fluctuation risk.

 

The rating, however draw support from the experience of the promoters in industry and long established track record of the business in dyes and chemicals industry.

 

Trade relations are fair. Business is active. Payments terms are reported to be slow.

 

In view of long track record backed by rich experience of its promoters, the company can be considered for business dealings with some caution.

 

NOTE :

RBI Defaulter status shows old cases on the subject company. But current status is unknown to us.

 

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)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name has been found enlisted as a defaulter in the publicly available RBI Defaulters’ list and the details of the same are as under :

 

Borrowers’ Name :

 INDOKEM LIMITED

Address :

KHATAU HOUSE,1ST FLOOR, MOGUL LANE, MAHIM(W), MUMBAI-400016, Maharashtra, India

Name of Individual :

Anil K Khatau

Arup Basu

Leela K. Khata

M Sarin

Mahendra K Khatau

N S Parulekar

V K Sharma

Name of Credit Grantors / Bank & Branch:

State Bank of India, SAMB

Amount (Rs. In Millions) :

Rs. 83.900 Million

 

 

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 31-03-2013.

 

INFORMATION DENIED BY

 

 

Management non co-operative (91-22-24450050/ 61236767)

 

 

LOCATIONS

 

Registered/ Head Office:

Khatau House, Plot No. 410/411, Mogul Lane, Mahim, Mumbai – 400016, Maharashtra, India

Tel. No.:

91-11- 61236767 / 61236711

Fax No.:

Not Available

E-Mail :

secretarial@indokem.co.in

iklsecretarial@gmail.com

Website :

www.indokem.co.in

 

 

Branch offices :

Located At :

·         Ahmedabad

·         Delhi

·         Coimbatore

 

 

Factory 1/ Warehouse 1  :

Plot No.244/2 (B), Village Dahisar Mori, Mumbra Panvel Road, Navi Mumbai, India

 

 

Factory 2 :

Ambernath, Maharashtra, India

 

 

Warehouse 2 :

·         Ahmedabad

·         Coimbatore

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Mr. Mahendra K. Khatau

Designation :

Chairman & Managing Director

 

 

Name :

Ms. Leelabai K. Khatau

Designation :

Non Executive Director

 

 

Name :

Mr. S. Rajagopalan

Designation :

Director

Date of Birth/Age :

75 Years

Qualification :

B. COM., A.I.C.W.A. (Associate ICWA)

Experience :

Over 39 Years Experience with leading manufacturing companies in the areas of Accounts, Finance and Audit

Date of Appointment :

27.12.2005

DIN No.:

00289643

Other Directorship.:

1) Refnol Resins and Chemicals Limited

Committee Membership:

Audit Committee:       

1) Indokem Limited – Member.

Remuneration Committee:

1) Indokem Limited – Member.

 

 

Name :

Mr. Kailash Pershad

Designation :

Director

Date of Birth/Age :

74 Years

Qualification :

B.E. Mechanical

Experience :

More than 42 years experience in the fields of Finance, General Management in Marketing as a consultant and Advisor

Date of Appointment :

31.10.2006

DIN No.:

00503603

Other Directorship.:

 

1) Godavari Biorefineries Limited.

Committee Membership:

Audit Committee:

1) Indokem Limited – Chairman.

Remuneration Committee:

1) Indokem Limited – Chairman.

 

 

Name :

Mr. Bhalchandra Sontakke

Designation :

Director

Date of Birth/Age :

70 Years

Qualification :

B. com., L.L.B. and MLS

Experience :

Experience of 32 years in the areas of Human Resource, Administration and Liaison with various government authorities.

Date of Appointment :

30.10.2009

DIN No.:

01225753

Other Directorship.:

1)       Refnol Resins & Chemicals Limited

2)       Committee Membership:

Audit Committee:

1) Indokem Limited – Member.

Share Transfer Committee:

1) Indokem Limited – Member.

Shareholders/Investors Grievance

Committee:

1) Indokem Limited – Chairman.

Remuneration Committee:

1) Indokem Limited – Member.

 

Name :

Mrs. Asha M. Khatau

Designation :

Director

Date of Birth/Age :

57 Years

Qualification :

B.A.

Experience :

Over 20 years in

the fields of General

Management as

a Consultant and

Advisor

Date of Appointment :

30.10.2009

Other Directorship.:

1) Refnol Resins & Chemicals Limited

2) Prism Plantations Private Limited

3) Priyamvada Holdings Limited.

4) Asha Marine Products Private Limited

5) Emerald Capital Services Private Limited

 

 

KEY EXECUTIVES

 

Name :

Rohan R. Gavas

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.06.2015

 

Category of Shareholder

Total No. of Shares held in Dematerialized Form

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

1113286

4.54

http://www.bseindia.com/include/images/clear.gifBodies Corporate

16293011

66.51

http://www.bseindia.com/include/images/clear.gifSub Total

17406297

71.05

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

17406297

71.05

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

0

0.15

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

400

0.01

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

0

0.07

http://www.bseindia.com/include/images/clear.gifInsurance Companies

5000

0.02

http://www.bseindia.com/include/images/clear.gifSub Total

5400

0.24

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

217850

1.28

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

1789565

20.25

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1667305

7.13

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

8013

0.05

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

7013

0.04

http://www.bseindia.com/include/images/clear.gifClearing Members

1000

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

3682733

28.71

Total Public shareholding (B)

3688133

28.95

Total (A)+(B)

21094430

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

21094430

100.00

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged into deals in dyes, sizing chemicals and auxiliaries used in Textile industry.

 

 

Products :

·         Dyes

·         Sizing chemicals

·         Auxiliaries used in textile industry

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         Union Bank Of India

·         Bank of India

 

 

Facilities :

Secured Loan

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Long-term Borrowings

 

 

Term loans

 

 

From others

 

 

Secured – Vehicle loan

NA

2.919

 

 

 

Short-term borrowings

 

 

Loans repayable on demand

 

 

From banks

NA

141.000

Total

NA

143.919

 

 

Secured Loan : [31.03.2014]

Long-term Borrowings

 

Details of Security and Terms of Repayment

 

i) Vehicle Loan amounting to Rs 3.848 Million (March’13, Rs 4.696 Million) repayable in monthly instalment, last instalment due on 10th November 2017 and is secured against specific vehicle

 

ii) Vehicle Loan amounting to Rs. Nil (March’13, Rs 0.261 Million) repayable in monthly instalment, last instalment due on 20th January 2014 and is secured against specific vehicle

 

Secured Loan :

Short-term Borrowings

 

As per one time settlement with bank and repayable within 12 months, the company has not repaid first instalment of Rs.135.0 Million which was due on 30th September 2012. The borrowing is secured against assets at Ankleshwar factory and premises at Mumbai.

 

Auditors :

 

Name :

Sheth Doctor and Associates

Chartered Accountants

Address :

3/1124, Navjivan commercial Premises, Co-op, Society, Lamington Road, Mumbai Central, Mumbai – 400008, Maharashtra, India

Mobile No.:

91-9819748438

Fax No.:

91-22-23020050

E-Mail :

doctor_paresh@yahoo.co.in

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Associate Company :

[31.03.2014]

Refnol Resin and Chemicals Limited

Khatau Leasing and Finance Company Private Limited

Vindhyapriya Holdings Private Limited

Emerald Capital Services Private Limited

Priyanilgiri Holdings Private Limited

Khatau Holdings and Trading Company Private Limited

MKK Holdings Private Limited

Indokem Exports Limited

Indokem Overseas Limited

Priyamvada Holdings Limited

Asha Marine Products Private Limited

Prerana Leasing and Finance Private Limited

Prism Plantations Private Limited

 

 

 

CAPITAL STRUCTURE

 

 

AS ON 31.03.2015

 

Authorised Capital : Not Available

 

Issued, Subscribed & Paid-up Capital : Rs. 244.972 Million

 

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,53,00,000

Equity Shares

Rs.10/- each

Rs. 253.000 Million

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,44,97,188

Equity Shares

Rs.10/- each

Rs. 244.972 Million

 

 

 

 

 

 

RIGHTS ETC. ATTACHED TO EQUITY SHARES :

 

The Company has only one class of equity having a face value of `10/ – per share. Each shareholder is eligible for one vote per share held.

 

DETAILS OF SHARES HELD BY THE SHAREHOLDERS HOLDING MORE THAN 5% OF THE AGGREGATE SHARES IN THE COMPANY :

 

Particulars

31.03.2014

Name of the Shareholder

No. of shares

%  of Holding

Priyamvada Holdings Limited

53,59,869

21.88

Vindhyapriya Holdings Private Limited

29,94,588

12.22

Khatau Leasing and Finance Company Private Limited

35,67,185

14.56

 

 

RECONCILIATION OF NUMBER OF SHARES OUTSTANDING AS ON BEGINNING AND CLOSING OF THE YEAR.

 

The company has neither issued nor is bought back any of its shares during the year and also in previous year and balance of share at the end of the year the same as at the beginning of the year.

ABRIDGED BALANCE SHEET

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

SOURCES OF FUNDS

 

31.03.2015

31.03.2014

(12 Months)

31.03.2013

(6 Months)

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

244.973

244.972

244.972

(b) Reserves & Surplus

(131.880)

(152.462)

(130.174)

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

113.093

92.510

114.798

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

84.257

85.622

80.652

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

19.538

20.143

20.112

(d) long-term provisions

7.518

7.103

5.549

Total Non-current Liabilities (3)

111.313

112.868

106.313

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

141.000

141.000

141.000

(b) Trade payables

111.158

90.125

86.543

(c) Other current liabilities

70.788

97.575

80.384

(d) Short-term provisions

2.316

0.000

0.000

Total Current Liabilities (4)

325.262

328.700

307.927

 

 

 

 

TOTAL

549.668

534.078

529.038

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

194.483

 

 

 

234.887

234.839

(ii) Intangible Assets

3.830

5.835

(iii) Capital work-in-progress

2.483

2.075

(iv) Intangible assets under development

0.000

0.000

(b) Non-current Investments

15.455

37.955

39.960

(c) Deferred tax assets (net)

38.865

0.000

0.000

(d)  Long-term Loan and Advances

0.000

37.825

35.706

(e) Other Non-current assets

1.695

0.550

0.996

Total Non-Current Assets

250.498

317.530

319.411

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

108.029

93.664

83.535

(c) Trade receivables

139.585

109.303

113.675

(d) Cash and cash equivalents

5.789

6.121

6.264

(e) Short-term loans and advances

45.077

6.391

5.083

(f) Other current assets

0.690

1.069

1.070

Total Current Assets

299.170

216.548

209.627

 

 

 

 

TOTAL

549.668

534.078

529.038

 

 

 

PROFIT & LOSS ACCOUNT

 

 

 

PARTICULARS

31.03.2015

31.03.2014

(12 Months)

31.03.2013

(6 Months)

 

SALES

 

 

 

 

 

Income

520.300

370.492

173.200

 

 

Other Income

10.700

5.021

0.585

 

 

TOTAL                                    

531.000

375.513

173.785

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

389.800

275.095

130.491

 

 

Employees benefits expense

41.500

34.043

10.766

 

 

Other expenses

77.700

48.437

20.972

 

 

TOTAL                                    

509.000

357.575

162.229

 

 

 

 

 

 

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

22.000

17.938

11.556

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

28.700

25.014

11.929

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX, DEPRECIATION AND AMORTISATION

(6.700)

(7.076)

(0.373)

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                    

4.700

5.933

2.297

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(11.400)

(13.009)

(2.670)

 

 

 

 

 

Less

TAX                                                                 

0.000

1.184

0.000

 

 

 

 

 

 

PROFIT / (LOSS) FROM CONTINUING OPERATIONS

(11.400)

(14.193)

(2.670)

 

 

 

 

 

Less/

Add

DISCONTINUING OPERATIONS

 

 

 

 

Profit / (Loss) from discontinuing operations

(before tax)

NA

(10.354)

(5.882)

 

Gain on settlement of liabilities attributable to

the discontinuing operations

NA

2.259

0.000

 

PROFIT / (LOSS) FROM DISCONTINUING OPERATIONS

NA

(8.095)

(5.882)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

(11.400)

(22.288)

(8.552)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

NA

56.247

15.439

 

 

 

 

 

 

IMPORTS

NA

27.307

8.489

 

 

 

 

 

 

Earnings Per Share (Rs.)

NA

(0.91)

(0.35)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

(12 Months)

31.03.2013

(6 Months)

Current Maturities of Long term debt

NA

0.930

1.110

Cash generated from operations

NA

NA

NA

Net cash flow from operating activities

NA

12.600

8.646

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2015

31.03.2014

(12 Months)

31.03.2013

(6 Months)

PAT / Total Income

(%)

(2.19)

(6.02)

(4.94)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

4.23

4.84

6.67

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(2.30)

(2.64)

(0.55)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.10)

(0.14)

(0.02)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.99

2.46

1.94

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.92

0.66

0.68

 

 

STOCK PRICES

 

Face Value

Rs. 10.00/-

Market Value

Rs. 6.56/-

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

244.972

244.972

244.973

Reserves & Surplus

(130.174)

(152.462)

(131.880)

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

114.798

92.510

113.093

 

 

 

 

long-term borrowings

80.652

85.622

84.257

Short term borrowings

141.000

141.000

141.000

Total borrowings

221.652

226.622

225.257

Debt/Equity ratio

1.931

2.450

1.992

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

173.200

370.492

520.300

 

 

113.910

40.435

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

173.200

370.492

520.300

Profit

(8.552)

(22.288)

(11.400)

 

(4.94)%

(6.02)%

(2.19)%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

Yes

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

OPERATIONAL PERFORMANCE : [As On : 31.03.2014]

 

During the year 2013-14, the total sales of the Company are increased from Rs.172.623 Million (6 months) to Rs. 367.665 Million (12 Months).

 

Export Sales has increased from Rs.17.078 Million (6 Months) to Rs. 63.661 Million (12 Months) for 2013-2014. Exports during forthcoming year are expected to grow further because of good market trend and efforts made by the Company for increasing its share in the international market.

 

The total World market for dyes and textile chemicals is estimated at US$ 12 billion and is growing at about 2%. Indian market is estimated to grow at US $ 800 million and is estimated to grow at 3%. India is the second largest manufacturers of dyes and chemicals followed by China. So there is ample scope for them to increase our export and local business in near future.

 

Further pursuant to Clause 49 of Listing Agreement, detailed performance of the Company is given in Management Discussion Analysis which forms part of the Director’s Report.

 

 

MERGER / AMALGAMATION : [As On : 31.03.2014]

 

Based on the Valuation Report presented by SSPA and Company Chartered Accountant, the fairness opinion provided by Fortress Capital Management Services Private Limited and recommendation made by the Audit Committee of the Company, the Board of Director have considered and approved the Scheme of Amalgamation and Arrangement between Khatau Capacitors Private Limited and Indokem Exports Limited and Indokem Limited and their respective Shareholders.

 

 

OPPORTUNITIES AND THREATS: [As On : 31.03.2014]

 

The textile industry is showing signs of recovery in India and abroad. Looking at the positive response to their Dyes and Chemicals, the company is in the process of completing Textile Auxiliaries project which will start its operation and enter the market very soon. Due to stringent pollution norms set by both Chinese & Indian Governments has resulted in closure of many ancillary units in China and India leading to increase in raw material prices by about 30 to 40%. Fluctuations in Foreign exchange may impact sales realizations.

 

 

SEGMENT–WISE / PRODUCT-WISE PERFORMANCE & OUTLOOK: [As On : 31.03.2014]

 

They have seen positive performance in their Vat Dyes division and expecting growth of around 30 to 40% over last year. This positive performance is due to good market opportunities in South India and got good corporate customers in their list. They are also seeing positive performance in their Sizing Chemicals with introduction of new products namely:- One shot Sizing Chemical, PVA free replacement, Eco friendly products which has helped industry in reducing their BOD/COD levels (Pollution control). They have also introduced new and better textile auxiliaries which will help to achieve a better performance in this area as well.

 

 

CORPORATE INFORMATION [As On : 31.03.2014]

 

The Company deals in dyes, sizing chemicals and auxiliaries used in Textile industry. It has Head Office at Mahim, Mumbai and branch offices at Ahmedabad, Delhi and Coimbatore. It has manufacturing and warehouse facility at Dahisar Mori near Mumbai and warehouses at Ahmedabad and Coimbatore locations and manufacturing facilities at Ambernath.

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Long-term Borrowings

 

 

Loans and advances from related parties

 

 

Loan from Promoter

NA

60.168

Loan from Directors

NA

22.535

Total

NA

82.703

 

Unsecured Loan [31.03.2014]

Long-term Borrowings

 

Loans from related parties are generally of Long Term nature. However no repayment schedule

is specified

 

 

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10148749

30/06/2009 *

10000000

UNION BANK OF INDIA

IFB,1st Floor, UNion Bank of India, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai, Maharashtra - 400021, INDIA

A68168566

2

10144099

31/12/2008

2500000

UNION BANK OF INDIA

IFB,1ST FLOOR, UNION BANK BHAVAN, 239,VIDHAN BHA 
VAN MARG, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA

A57171688

3

10094226

05/03/2008

76500000

Union Bank of India (acting as Lead Bank)

IFB, 1st Floor, Union Bank Bhavan,, 239, Vidhan B 
havan Marg, Nariman Point, Mumbai, Maharashtra - 
400021, INDIA

A35044007

4

10094228

05/03/2008

178000000

Union Bank of India (acting as Lead Bank)

IFB, 1st Floor, Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai, Maharashtra - 
400021, INDIA

A35044254

5

10258848

05/06/2007

60000000

UNION BANK OF INDIA LIMITED

INDUSTRIAL FINANCE BRANCH, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA

A21714001

6

10331045

24/01/2007

10000000

UNION BANK OF INDIA LIMITED

INDUSTRIAL FINANCE BRANCH, UNION BANK BHAVAN, 239, 
VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA

A13920061

7

90229964

14/04/2004

13500000

UNION BANK OF INDIA

INDUSTRIAL FINANCE BRANCH; UNION BANK BHAVAN, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA

-

8

90229582

19/06/2000

9000000

UNION BANK OF INDIA

INDUSTRIAL FINANCE BRANCH; UNION BANK BHAVAN, NA 
RIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA

-

9

90229443

19/06/2000 *

5000000

UNION BANK OF INDIA

INDUSTRIAL FINANCE BRANCH ; UNION BANK BHAVAN, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA

-

10

90228892

15/03/1995

116500000

UNION BANK OF INDIA

INDUSTRIAL FINANCE BRANCH; UNION BANK BHAVAN, 239; VIDHAN BHAVAN MARG, MUMBAI, Maharashtra - 400021, INDIA

-

 

 

CONTINGENT LIABILITIES:

 

(Rs. in million)

PARTICULARS

31.03.2015

31.03.2014

Disputed Income Tax demand on appeal

NA

44.677

Sales Tax demand amounting

NA

3.049

Interest demand on Service Tax

NA

0.278

Claims against the Company not acknowledged as debts

NA

8.425

Guarantees given by the Company

 

 

(i) The Company has given counter guarantee against the facilities availed by M/s Khatau Leasing and Finance Company Private Limited and M/s Khatau Holdings and Trading Private Limited towards working capital facilities from bank.

NA

0.000

(ii)Guarantee given to Gujarat Pollution Control Board

NA

0.025

Custom Duty, if any payable in the event of non-fullfilment of export obligations in respect of Advance License availed amounting

NA

3.427

 

 

FIXED ASSETS

 

·         Land

·         Freehold

·         Leasehold

·         Buildings

·         Plant and Equipment

·         Furniture and Fixtures

·         Vehicles

·         Office equipment

·         Electrical Installation

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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 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.63.89

UK Pound

1

Rs.99.71

Euro

1

Rs.70.62

 

 

INFORMATION DETAILS

 

Information Gathered by :

DPA

 

 

Analysis Done by :

KSP

 

 

Report Prepared by :

DDD

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

--

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

YES

--EPF

YES/NO

NO

TOTAL

 

26

 

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 unfavorable 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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.