Basf India Limited

INDIA@BASF_INDIA_LIMITED_-_143047_27-MAY-2011
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MIRA INFORM REPORT

Report Date : 27.05.2011
IDENTIFICATION DETAILS Name : Registered Office : BASF INDIA LIMITED 1 Floor, Vibgyor Towers, Plot No. 62, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051, Maharashtra India 31.03.2010 13.05.1943 11-003972
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Country : Financials (as on) : Date of Incorporation : Com. Reg. No.:
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Capital Investment / Paidup Capital : CIN No.:

[Company Identification No.]
Rs.407.700 Millions
L33112MH1943FLC003972 MUMB00133A
& Collection
TAN No.:
[Tax Deduction Account No.]
Legal Form :
A Public Limited Liability Company. The Companys Shares are Listed on the Stock Exchange. Manufacturing and marketing of expandable polystyrene (styropor), carbendazim, leather auxiliaries (organic chemicals), oil and well chemicals, leather auxiliaries, finishing agents and pigments, leather chemicals and auxiliaries including metal complex, dyes and acrylic polymers, pesticides and dyestuffs and other chemicals. 990 (Approximately )
Line of Business :
No. of Employees :
RATING & COMMENTS MIRAs Rating : Aa (78)
This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.
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RATING 71-85 Aa STATUS Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums USD 34630000 Good Regular Clear
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PROPOSED CREDIT LINE Large
Maximum Credit Limit : Status : Payment Behaviour : Litigation : Comments :
Subject is a part of multinational BASF group. Financial position of the company is sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are regular and as per commitments. The company can be considered good for normal 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, ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF. name and date.
ECGC Country Risk Classification List April 1, 2010 Country Name India Risk Category Insignificant Low Moderate High Very High Restricted Off-credit ECGC Classification A1 A2 B1 B2 C1 C2 D Previous Rating (31.12.2009) A1 Current Rating (01.04.2010) A1
LOCATIONS Registered Office : 1 Floor, Vibgyor Towers, Plot No. 62, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051, Maharashtra, India
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Corporate Office : Tel. No.: Fax No.: E-Mail : Website : Works / Factory:
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RBC, Mahindra Towers, 1 Floor, A Wing, Dr. G M Bhosale Marg, Worli, Mumbai 400018, Maharashtra, India 91-22-66618000 / 66917400 91-22-24930653 pradeep.chandan@basf.com / shreyas.trivedi@basf.com http://www.basf-india.com Thane Belapur Road, Turbhe, Navi Mumbai 400705, Maharashtra, India Tel. No. 91-22-66917400 Fax. No. 91-22-66917230 Bala Thokur Village, Surathkal-Bajpe Road, Mangalore Taluka, Dakshina Kannada District, Karnataka, India 83/2, Demni Village, Dena Bank Road, Dadra 396 191, Union Territory of Dadra and Nagar Haveli, India Village Dahej, Taluk Vagra, Dist. Bharuch 392130, Gujarat, India Tel. No. 91-2641-256021 Fax. No. 91-2641-256022
Unit I: Unit II: Branches :
Plot No. 6214/6216, GIDC Phase IV, Ankleshwar 393002, Gujarat, India Plot No. 8001, GIDC Phase VI, Ankleshwar 393002, Gujarat, India Located at Surathkal-Bajpe Road, Bala 574149, Via Katipalla, Mangalore, Karnataka, India Tel. No. 91-824-270670 Fax. No. 91-824-270025 Ashram Road, Karaka Building, Navrangpura, Ahmedabad 380009, Gujarat Tel. No. 91-79-26583074 Fax. No. 91-26581447 13/A, Government Place East, Chennai 600086, Tamilnadu Tel. No. 91-33-22201354 Fax. No. 91-33-22480854 46, Cathedral Road, Chennai 600086, Tamilnadu Tel. No. 91-44-28113561 Fax. No. 91-44-28115956 203, Demni Village, Dena Bank Road, Dadra 396191, Union Territory of Dadra and Nagar Haveli Tel. No. 91-260-2668937
Fax. No. 91-260-2668652
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502A, 5 Floor, 3-6-237-Lingapur La Building, Himayat Nagar, Hyderabad 500029, Andhra Pradesh Tel. No. 91-40-23226166 Plot No. C-12, 150 Feet Road, Jajmau, Kanpur 208010, Uttar Pradesh Tel. No. 91-512-2461732 17-18, Kailash Enclave, Lala Lajpat Rai Marg, New Delhi 110048 Tel. No. 91-11-51596400 Fax. No. 91-11-51596496 Post Box No. 7304, Lal Bahadur Shastri Marg, Bhandup (West), Mumbai 400078, Maharashtra Tel. No. 91-22-25461471 Fax. No. 91-22-25644351 147, Mumbai Pune Road, Pimpri, Pune 411018, Maharashtra Tel. No. 91-20-27469681 Fax. No. 91-20-27464083
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DIRECTORS AS ON 31.03.2010 Name : Designation : Qualification : Experience : Date of Appointment : Previous Employment: Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Mr. Prasad Chandran Chairman and Managing Director B.Sc. (Hons.), Diploma in Industrial Chemistry, M.B.A. 29 Years 02.04.2000 Searle India Limited Executive Director (2 years) Mr. R. E. Vaz Chief Executive Performance Chemicals 01.10.1999 Mr. S. Kumarasamy Chief Executive Crop Protection Chemicals 18.01.2002 Dr. Harald Lauke Director 01.10.2002 Dr. E. Baumgartner Director 17.04.2002
Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Name : Designation : Date of Appointment : Name : Designation : Name : Designation : Name : Designation : Name : Designation : Name : Designation : Name : Designation : Name : Designation : Mr. Boon Yeow Yee Director 21.04.2004 Mr. K. R. Coorlawala Director 10.02.1975 Mr. Pradip P. Shah Director 31.01.2000 Mr. R. A. Shah Director 25.04.1968 Mr. R. R. Nair Director 30.03.2001
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Mr. L. S. Naik Chief Executive Dispersions, Specialities, Pigments and Printing Inks 01.10.1999 Dr. W. Burgert Director 01.10.1999
Mr. E. Hilgemann Director 28.07.1998 Mr. S. Ramnath Director Mr. Tilman Krauch Director Mr. Rainer Diercks Director Mr. Raman Ramachandran Director Mr. Deepak Thuse Director Mr. S. Khanolkar Director Dr. G. Ramaseshan Director
Name : Designation : Name : Designation : Mr. R. Y. Vaidya Director Mr. Hermann Althoff Director
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KEY EXECUTIVES Name : Designation : Name : Designation : Mr. M. R. Iyer Company Secretary Mr. Pradeep Chandan Secretary
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN As on 31.03.2011 Total Shareholding ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF. a % of total as No. of Shares (A) Shareholding of Promoter and Promoter Group (1) Indian (2) Foreign Bodies Corporate Sub Total Total shareholding of Promoter and Promoter Group (A) (B) Public Shareholding (1) Institutions Mutual Funds / UTI Financial Institutions / Banks Central Government / State Government(s) Insurance Companies Foreign Institutional Investors Sub Total (2) Non-Institutions 6,927 1,054,327 30 1,472,155 296,735 2,830,174 0.02 2.44 3.40 0.69 6.54 31,743,220 31,743,220 31,743,220 73.33 73.33 73.33 Category of Shareholder Total No. of Shares
Bodies Corporate Individuals Individual shareholders holding nominal share capital up to Rs. 0.100 million Individual shareholders holding nominal share capital in excess of Rs. 0.100 million Any Others (Specify) Non Resident Indians Trusts Sub Total Total Public shareholding (B) Total (A)+(B) (C) Shares held by Custodians and against which Depository Receipts have been issued (1) Promoter and Promoter Group (2) Public Sub Total
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1,974,164 4.56
5,742,192 701,589 294,301 291,049 3,252 8,712,246 11,542,420 43,285,640 -
13.27 1.62 0.68 0.67 0.01 20.13 26.67 100.00 100.00
Total (A)+(B)+(C)
43,285,640
BUSINESS DETAILS Line of Business : Manufacturing and marketing of expandable polystyrene (styropor), carbendazim, leather auxiliaries (organic chemicals), oil and well chemicals, leather auxiliaries, finishing agents and pigments, leather chemicals and auxiliaries including metal complex, dyes and acrylic polymers, pesticides and dyestuffs and other chemicals. Product Description Synthetic Tanning Agents Expandable Polystyrene Carbendazim Other Item Code No 32021000 39031100 38082000 38089390
Products :
PRODUCTION STATUS AS ON 31.03.2010 Particulars Expandable Polystyrene (Styropor) Engineering Plastics **** Leather Auxiliaries (Organic Chemicals) Unit MT MT MT Installed Capacity 30000 9000 15000
Leather Auxiliaries, Finishing Agents and Pigments Leather Chemicals and Auxiliaries including Metal Complex Dyes and Acrylic Polymers Pesticides Optical brightening agents *** Thermal Developers and Color Former *** *** Production facility of amalgamating company at Ankleshwar site **** Production has commenced during 2009-10. MT MT
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7350 67225
MT MT
6700 905
GENERAL INFORMATION No. of Employees : Bankers : 990 Approximately State Bank of India, Madame Cama Road, Mumbai-400021, Maharashtra, India Mitsui Bank Limited Fort, Mumbai-400001, Maharashtra, India Union Bank of India Bank of America N.A., Vereinigte Staaten ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF. Citibank N.A. Deutsche Bank Standard Chartered Grindlays Bank Limited ABN Amro Bank N.V. HDFC Bank Limited BNP Paribas Facilities : Bank Overdraft /Facilities of Rs.90.500 millions
Banking Relations : Auditors : Name :
Good
Deloitte Haskins and Sells Chartered Accountants BSR and Company Chartered Accountants Address: KPMG House, Kamala Mills Compound, 448, Senapati Bapat Marg, Lower Parel, Mumbai 400013, Maharashtra, India
Internal Auditors : Mahajan and Aibara Chartered Accountants Memberships : Confederation of Indian Industry
Holding Company : Associates : BASF SE
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BASF Agro B.V. BASF Kanoo Gulf Fze Bassell Polyolefin Company, NV BASF Petronas Chemicals SDN BHD BASF Styrenics Private Limited BASF AG BASF Company Limited BASF Japan Limited BASF Bangladesh Limited P. T. BASF Indonesia BASF Finlay Private Limited Funfte BASF Projektentwicklungsgesellschaft MBH BASF Corporation M. Dohmen Italia BASF Curtex S.A. BASF JCIC Neopentylglycol Company BASCOM AG BASF Industries Private Limited BASF Taiwan Limited BASF (Thai) Limited BASF Vita ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF. Subsidiaries : BASF Curtex S. A. BASF Finlay Private Limited BASF Phillipines Inc. BASF South East Asia Pte Limited BASF Taiwan Limited BASF Uruguay S. A. BASF (Malaysia) SDN BHD PT BASF Indonesia BASF China Limited BASF Colorants and Chemicals Company Limited BASF Drucksysteme Schweiz GmbH Elastogran GmbH Elenac GmbH Kali Und Salz Betelligungs AG BASFD Industries Private Limited BASF Agro B.V. Arnhem (NI) BASF Agro B.V. - Wedneswil Branch BASF Asia Pacific Service Centre SDN, BHD BASF Chemtrade Gesellschafr MBH BASF Chemicals and Polymers Pakistan (Private) Limited BASF (China) Company Limited BASF Coating (India) Private Limited BSFA Company Limited BSFA Construction Chemicals (India) Private Limited BSFA East Asia Regional Headquarter Limited
BSFA Construction Chemicals, Dubai BASF Espanola S.L BSFA Pakistan (Private) Limited BASF Polurethanes (Malaysia) SDN BHD BASF Polurethanes (Taiwan) Company Limited BASF Turkey Kimya Sanayi Ve Ticaret Limited STI. BASF Specially Chemicals Distribution Gmbh Elastrong Italia Spa (Elit) K+S Akitengesellscaft BTD Speciality Chemicals
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CAPITAL STRUCTURE As On 12.08.2010 Authorised Capital : Rs. 543.597 millions Issued Subscribed & Paid-up Capital : Rs. 432.849 millions As On 31.03.2010 Authorised Capital :
No. of Shares 45000000 Type Equity Shares Value Rs.10/- Each
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Amount Rs.450.000 Millions
Issued No. of Shares 40769987 Type Equity Shares Value Rs.10/- Each Amount Rs.407.700 Millions
Subscribed & Paid-up Capital : No. of Shares 40769305 Type Equity Shares Value Rs.10/- Each Amount Rs.407.700 Millions
Of the above Issued for consideration other than cash

ISIEmergingMarketsPDF were allotted from 203.115.115.2 onto a contract 01:37:27 EST. DownloadPDF. - 700 Equity Shares in-adfactor as fully paid pursuant 2011-12-15 without payment being received
in cash and 15,771,400 Equity Shares were allotted as fully paid Bonus Shares by way of capitalisation of Reserves.
- 4,035,948 shares were allotted to the erstwhile shareholders of Cyanamid Agro Limited (CAL) consequent to the amalgamation w.e.f. April 1, 2001. - 12,579,839 shares were allotted to the erstwhile shareholders of Ciba India Limited and Ciba Research (India) Private Limited consequent to the amalgamation w.e.f. February 1, 2010 (Refer Schedule 19(2)). Holding Company and its affiliates - 20,319,667 (Previous Year - 20,066,242) Equity Shares are held by BASF SE, the holding company. - 1,941,912 (Previous Year - Nil) Equity Shares are held by Ciba International Inc., Switzerland, an affiliate of the Holding Company. - 6,965,988 (Previous Year - Nil) Equity Shares are held by BASF Specialty Chemicals Holding GmbH, an affiliate of the Holding Company.
[all figures are in Rupees Millions] ABRIDGED BALANCE SHEET SOURCES OF FUNDS SHAREHOLDERS FUNDS 1] Share Capital 2] Share Application Money 31.03.2010 31.03.2009 31.03.2008
407.700 0.000
281.900 0.000
281.900 0.000
3] Reserves & Surplus 4] (Accumulated Losses) NETWORTH LOAN FUNDS 1] Secured Loans 2] Unsecured Loans TOTAL BORROWING DEFERRED TAX LIABILITIES TOTAL APPLICATION OF FUNDS FIXED ASSETS [Net Block] Capital work-in-progress INVESTMENT DEFERREX TAX ASSETS 2433.100 95.200 90.000 85.900 8250.000 0.000 8657.700 0.000 0.000 0.000 0.000 8657.700
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3570.400 0.000 3852.300 0.000 0.000 0.000 65.900 3918.200 3114.900 0.000 3396.800 0.000 0.000 0.000 0.000 3396.800
1259.400 211.500 90.000 68.400
1168.600 40.000 119.000 23.600
CURRENT ASSETS, LOANS & ADVANCES Inventories 3495.100 2009.800 Sundry Debtors 2580.000 1372.800 Cash & Bank Balances 1638.400 277.000 ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF. Other Current Assets 0.000 0.000 Loans & Advances 2258.800 1285.500 Total Current Assets 9972.300 4945.100 Less : CURRENT LIABILITIES & PROVISIONS Sundry Creditors 3281.700 2183.700 Current Liabilities 195.000 128.000 Provisions 542.100 344.500 Total Current Liabilities 4018.800 2656.200 Net Current Assets 5953.500 2288.900 MISCELLANEOUS EXPENSES TOTAL 0.000 8657.700 0.000 3918.200
1249.200 1586.900 81.600 0.000 977.100 3894.800 0.000 1513.100 336.100 1849.200 2045.600 0.000 3396.800
PROFIT & LOSS ACCOUNT PARTICULARS SALES Sales Other Income TOTAL Less EXPENSES Raw Material Consumed 6292.700 6072.000 4971.300 13816.900 124.500 13941.400 11156.000 102.200 11258.200 9072.000 46.900 9118.900 31.03.2010 31.03.2009 31.03.2008
(A)
Purchased of finished goods Other Expenses Increase/(Decrease) in Finished Goods TOTAL (B) Less PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) FINANCIAL EXPENSES (D) 3125.800 3215.900 (475.900) 12158.500 1782.900
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1527.100 2650.200 (237.700) 10011.600 1246.600 900.100 2252.700 (84.000) 8040.100 1078.800
Less
8.400 1774.500
14.900 1231.700
12.800 1066.000
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) Less/ Add DEPRECIATION/ AMORTISATION (F)
260.800
151.600
136.000
PROFIT BEFORE TAX (E-F) Less TAX PROFIT AFTER TAX (G-H) EARNINGS IN FOREIGN CURRENCY Export Earnings Commission Earnings Other Earnings TOTAL EARNINGS IMPORTS Raw Materials Capital Goods Stores & Spares Finished Goods TOTAL IMPORTS Earnings Per Share (Rs.)
(G) (H) (I)
1513.700 545.600 968.100
1080.100 391.700 686.400
930.000 336.300 593.700
598.900 676.900 14.400 1290.200
566.100 608.800 48.200 1223.100
370.300 492.200 12.800 875.300
4772.400 71.500 2.100 1504.200 6350.200 25.00
3858.300 101.800 0.800 762.300 4723.200 23.16
2451.000 27.600 0.000 754.600 3233.200 21.06
QUARTERLY RESULTS Particulars (Rs in Millions) Net Sales Total Expenditure PBIDT (Excl OI) Other Income Operating Profit Interest 31.03.2011 6787.200 6502.900 284.300 0 284.300 24.500 31.12.2010 7019.900 6827.500 192.400 0 192.400 29.100 30.09.2010 6586.600 5803.500 783.100 0 783.100 4.100 30.06.2010 6636.100 5809.300 826.800 0 826.800 1.900
Exceptional Items PBDT Depreciation Profit Before Tax Tax Provisions and contingencies Profit After Tax 0 259.800 119.000 140.800 20.600 0.000 120.200 0 163.300 117.100 46.200 (190.600) 0.000 236.800
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0 779.000 89.000 690.000 233.500 0.000 456.500 0.000 824.900 89.400 735.500 246.900 0 488.600
KEY RATIOS PARTICULARS PAT / Total Income Net Profit Margin (PBT/Sales) Return on Total Assets (PBT/Total Assets} Return on Investment (ROI) (PBT/Networth) Debt Equity Ratio (Total Liability/Networth) Current Ratio (Current Asset/Current Liability) (%) (%) 31.03.2010 6.94 10.95 31.03.2009 6.09 9.65 31.03.2008 6.51 10.25
(%)
12.20
17.38
18.38
0.17
0.28
0.27
0.46
0.69
0.54
2.40
1.86
2.11
LOCAL AGENCY FURTHER INFORMATION BIODATA Subject was incorporated as R A Cole Private Limited in May'43 and its name was changed to Indoplast Ltd in Jan '63. It got its present name in Sep.'67. It is managed by the chairman and managing director P M Thampi. BIL has a technical collaboration with BASF AG, Germany, which also holds a 50% stake in the company. BIL manufactures expandable polystyrene (styropar), leather chemicals, tanning agents, pesticides and oil well chemicals. It has manufacturing facilities at Thane and Bokaro. BIL's sugicides (Bavistin and Calixin) are regularly exported to the parent company, Subject, Germany. In addition, it manufactures herbicides (basalin) and insecticides (basathrin), as well as auxiliaries for the paper industry, waterproofing agents for the construction industry, and dyestuffs for the carpet/hosiery industries. In Jan.'95, it came up with a rights issue at a premium of Rs.900.000 millions, aggregating Rs.191.7 millions to set up a chemical complex at Mangalore to manufacture leather chemicals and auxiliaries including metal complex dyes and polymer dispersions, with technical know-how from Subject, Germany. Commercial production commenced in Mar.'96. In 1996, it again raised Rs.575. Millions by way of a rights issue in the ratio 2:5 at a price of Rs 125 per share to part finance the expansions and new projects at its plants in Mangalore and Thane.
The Company's Mangalore factory has obtained ISO 9002 certification w.e.f5th July 2000.
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In a major move, the board of directors of subject has approved the scheme of amalgamation of Cyanamid Agro (CAL) with the company effective from 1 Jan 2001. The share swap ratio has been determined by the board of directors at two equity shares of subject (of Rs.10 each fully paid-up) for five equity shares of CAL (of Rs.10 each fully paid-up). Financial Results Activities The performance of the Company during the year under report registered an impressive growth over the previous year. Sales at Rs. 14655 million and Profit before tax at Rs. 1514 million during the year ended 31st March, 2010 represent an increase of 18% and 40% respectively, over the previous year. This substantial increase in profit before tax was mainly on account of higher capacity utilization, improved operating results of the Agricultural Solutions, Performance Products and Plastics businesses. Profit after tax at Rs. 968.1 million was higher by 41% compared to the previous year. The Agricultural Solutions business recorded substantial increase in sales and profits during the year ended 31st March, 2010 mainly due to higher realizations, effective working capital management and several marketing initiatives undertaken including introduction of new products during the year under report. The Performance Products segment which include care chemicals, dispersions, textiles, specialty and leather chemical businesses registered increase in sales, both in volume and value terms. The Plastics business recorded higher sales and profits compared to the previous year. The Chemical business performance during the year under review was lower, compared to the previous year mainly due to reduced market uptake in ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF. certain segments and lower prices. Overall capacity utilization was higher compared to the previous year. The export sales at Rs. 609 million during the year under report represented an increase of 7% over the previous year. During the year under report, the Company has successfully commissioned the Engineering Plastics Compounding plant at its Navi Mumbai factory, which will cater to the requirements of the automobiles, electrical and electronic industries. MANAGEMENT DISCUSSION AND ANALYSIS REPORT: The fiscal year 2009-10 saw the world economy slowly but surely emerge out of the deep trenches of the economic recession following the global financial crisis. Visible signs of global economic recovery and stabilization surfaced as industrial production and trade world over picked up by the second half of the calendar year 2009. The Indian economy escaped the worst effects of the crisis due to sound economic policies and financial measures. The resilience of the Indian economy was evident as the GDP growth was stable at 6.7% in 2008-2009, and the Economic Survey for 2009-2010 pegged India's GDP growth at 7.2%. The survey has forecasted strong GDP growth and expects it to scale 9% by 2012. The Indian manufacturing sector started picking up since June, 2009 and gained momentum in subsequent months. Overall, the manufacturing sector is expected to grow at about 8.9% in 2009-2010, as against 3.2% in the previous year. In line with the manufacturing industry, the index for chemical products in 2009-2010 is expected to grow at an impressive rate of 11%, as against the modest growth of 4% in the last year. The Company's products cater to many end-use industries, including agriculture, paper, Pharmaceuticals, consumer durables, electronics, automobiles, construction, leather and textiles, etc. Strong performance of these end-use industries is a pre-requisite for the healthy growth of the Company. With poor monsoon leading to a decline in the production of food grains and oilseeds, the growth in the agriculture sector has shown a decline of 0.2% in 2009-10. However, with stable monsoon expected and continued government initiatives, India's agricultural sector is expected to rebound strongly in the current year. The economic scenario in the advanced countries also showed marked signs of revival in the latter part of 2009-10, providing the much needed thrust to export dependent industries like textiles
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and leather. Despite inflation worries gripping the Indian economy, the domestic demand in 2010-11 is expected to remain healthy. Improved economic scenario and general stability will aid the demand for end-use industries where the Company's products are supplied. The general improvement in global economy would boost higher growth for export dependent industries, including most of the end use industries. All these indicators are expected to generate an improved demand for chemical products. The outlook.for the chemical industry thus remains optimistic. Agricultural Solutions The Agricultural Solutions business includes insecticides, herbicides, fungicides and specialties. Food grain production in 2009-10, estimated at 217 million tons, is lower by 7.2% as compared to the previous year due to poor monsoon. However, with continued government initiatives and positive monsoon forecast, India's agricultural sector is expected to rebound in the current year. The Herbicides business was impacted during the year due to delayed and deficit monsoon. Despite this, the crop protection market grew by 8-10%, mainly by virtue of insecticides market getting upgraded to new chemistries. Fungicides and Herbicides segments, in which the Company has products to offer, also registered growth. The Agricultural Solutions business continued its growth due to introduction of new products, expansion of marketing initiatives and consolidating and building on the various strategic measures initiated in the earlier years. During the year, the Company has successfully launched three new prosperity products, namely 'Verismo' in Insecticide segment, 'Cabrio Top' in Fungicide segment and 'Stomp Xtra' in the Herbicide segment. These new products will add value to the existing market product portfolio and favorable response to these products is foreseen. The Company's Samruddhi (prosperity) program, which is a yield enhancement program, has received wide acceptance within the farmer community. Through this program, the farmers are educated about usage of ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF. fertilizers, seed, spacing and timely usage of agrochemical inputs. Efforts to expand the product portfolio will continue, along with strengthening of the development, technical services and marketing teams. Performance Products Research and Development experts from leading cosmetics companies try their hands at the newly launched Color Trends 2010 organised by the Care Chemicals division. The Performance Products business includes performance chemicals and functional polymers. This business caters to the requirements of a wide spectrum of industries, including textile, leather, plastics and coatings, detergent formulators, automobile and oil. Leather chemical business witnessed a slow recovery in the second half of 2009, post global economic crisis. Upholsteryleather production was the worst affected during the year. The shoe upper and safety shoes production business, however, is now on a recovery path. The leather chemicals business recorded marginal increase in sales. Increasing raw material prices and weakening rupee are serious concerns for this business. Despite these concerns, the year 2010 looks optimistic in terms of the global demand, especially from US and EU markets. The textiles chemical market comprises diverse players in terms of size, from single product suppliers to suppliers offering chemicals for the entire value chain, along with added services such as process optimization, specialized fabric testing and certification. The textiles chemicals business achieved good growth, both in value and volume terms. Better packaging offered by the Company has yielded good results in the pre-treatment, finishing and pigments printing businesses. Eco-friendly chemicals, which offer resource savings, energy, water consumption, will be the key drivers for growth in the coming years. New opportunities are expected in following segments Home Textiles, Technical Textiles. Several cost optimization measures initiated during the previous year were fully implemented across all the product groups of textile and leather chemicals during the year under review. The outlook for the Textiles Chemicals business looks reasonably optimistic, due to the demand from US and EU markets. In addition, the domestic demand is likely to drive the textiles market in a positive direction. During the year, the Company strengthened its product portfolio by addition of the polymers business of erstwhile Ciba. The plastics additives business saw improved sales. However, sale of domestic antioxidant business was lower during the year. . Innovative and cost-effective product development, consolidation of capacities across the polymer value chain, energy management and effective knowledge management will drive the global polymers industry in
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the near future. The Automotive and Refinery Chemicals business of the Company witnessed a good year, with substantial growth in sales as compared to the previous year. This was due to the growth of the Automotive Sector, especially in passenger vehicles and two wheelers segment. The Company continues to be a leading supplier in coolants to the major OEMs in the country. The Company acquired the process lubricant additive business from erstwhile Ciba and this has strengthened the product portfolio further and facilitated to serve both the oil and the automotive industries better. Effective pricing policy has enabled the Company to sustain profitable performance in this business. The Water Treatment solutions business was severely affected due to lowering of the plant capacities. However, with the revival of sugar and mining industries, polymer usage will increase, resulting in good demand for water treatment solutions. The Care Chemicals business showed encouraging growth, driven by increase in disposable income and changing lifestyles. Prospects of this business depend on the growth of the FMCG and Pharmaceuticals sectors. This business ranges from the eco-friendly surfactants and polymers in the area of textile, agro, cosmetics and detergents, to the regulatory complaint vitamins, active pharmaceutical ingredients and excipients. Growth areas for this business have been identified in segments like disintegrates, food fortification and dietary supplements. Detergents and Cosmetics business was strengthened with the addition of the erstwhile Ciba products into this business, which were complementary to the Company's existing products. The strengthened product portfolio will provide the customers with better value proposition. The Pharma sector witnessed growth and BASF has been successful in making new chemistries for Pharma.The Nutrition business of the Company is also well poised to grow in emerging segments like value added food and beverages. The Acrylics Monomer business was integrated with the Petrochemicals business, while the Dispersions business was aligned according to the customer target industries into the Dispersions and Pigments business to cater to the needs of coatings, construction and packaging industries. Dispersions and Pigments division supports its customers to continuously improve their products in industries like adhesives, printing, packaging and constructions. The Paper Chemicals ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF. business, with its comprehensive product portfolio and technical expertise, was able to cater to the needs of the industry from the wet-end to paper coatings chemicals. The Paper Chemicals business registered significant growth during the year, resulting in higher utilization of the manufacturing capacity. Growth areas for paper industry were mainly in the areas of art, graphic and writing-printing paper segments. Overall, economic growth, high consumption of packaging and increasing literacy rates are the main growth drivers of this industry. General economic slowdown, volatility in pricing of feed stocks and exchange rate fluctuation are potential threats to the overall business. The Paper Chemicals business is expected to further grow in the coming year, given the positive outlook for manufacturing in the country.
FIXED ASSETS Freehold Land Leasehold Land Buildings and Ownership Flats Plant and Machinery Furniture Fixtures and Equipments Vehicles
AS PER WEBSITE DETAILS: PROFILE:
PAGE NO. : 18
Subject is the flagship company of the BASF Group in India. The company is listed on the National Stock Exchange and the Bombay Stock Exchange. Subject is headquartered in Mumbai, with manufacturing facilities in Thane, Mangalore and Dadra. Subject manufactures and markets expandable polystyrene, tanning agents, leather chemicals and auxiliaries including specialised metal complexdyes, leather dyes, textile chemicals, dispersions and speciality chemicals, acrylic polymers in primary forms and crop protection chemicals. Subject also involved in the trading of chemicals including dyestuffs and related textile auxiliaries, and renders technical services to various industries NEWS RELEASE BASF opens new plant for Eukesolar dyes in India Major Benefits for the Indian Leather Industry. A Broad variety of striking colors.
Mangalore, India, December 5, 2007 BASF today celebrated the opening of its new plant in Mangalore, southern India, which will manufacture Eukesolar dyes for the leather tanning industry.
The facility will provide customers in the growing Asian market as well as the tanning industry in other regions with a reliable supply of high-quality chemicals. The establishment of the Eukesolar plant is part of BASFs strategy to continually strengthen its commitment to the Indian market, which is one of the most important prospective markets, said Thomas Sattler, who is responsible for the global leather business at BASF. Located in Mangalore, the new plant will leverage synergies with the leather powder dyes production that has been taking place at Mangalore for many years. Together with the new service centre in Thane, which was inaugurated yesterday, the Eukesolar plant will provide the Indian leather industry with major benefits, including a broad portfolio of technical support, advisory services and short delivery times. This production facility in Mangalore will help us to maintain the leading position as the complete solution provider in the South Asian leather industry, said Prasad Chandran, Chairman, BASF Group in India and Head South Asia. Eukesolar E liquid spray dyes offer a broad variety of striking colors. The extreme brightness and intensity of these colors make them perfect for creating special fashionable effects on aniline, semi-aniline and nubuck leathers. Eukesolar E dyes afford excellent resistance to water- spotting and, like many other BASF leather products, they are NMP-free. BASF Performance Chemicals - always one idea ahead!
PAGE NO. : 19
The product range of BASF's Performance Chemicals for Leather business unit includes chemicals for all wet-end and finishing processes in the leather and fur industries. With a worldwide manufacturing and marketing organization, they are one of the leading suppliers in these fields. BASF is the worlds leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASFs high-value products and intelligent system solutions help its customers to be more successful. BASF develops new technologies and uses them to meet the challenges of the future and open up additional market opportunities. It combines economic success with environmental protection and social responsibility, thus contributing to a better future. BASF has approximately 95,000 employees and posted sales of 52.6 billion (approximately $66.1 billion) in 2006. At present, the BASF Group in India is represented by the following companies: BASF India Limited BASF Coatings Private Limited BASF Styrenics Private Limited BASF Polyurethanes India Limited BASF Construction Chemicals (India) Private Limited BASF Catalyst India Private Limited BASF Asia Pacific (India) Private Limited
Activities and Product

As a dependable partner to stakeholders, subject offers innovative, hi-tech and safe solutions. subject in India is engaged in the business of manufacturing and marketing of Styropor, tanning agents, leather chemicals and auxiliaries, crop protection chemicals, textile chemicals, dispersions and specialty chemicals, plastics, automotive and coil coatings, catalysts, construction chemicals, polystyrene and polyurethane systems.
With a strong manufacturing and R and D base, the BASF Group in India is represented by more than 1400 employees having multi-location production sites and an R and D centre, which is part of the BASF Global Technology Platform. Note on the Scheme of Amalgamation of Ciba India Limited, Ciba Research (India) Private Limited, Diamond Dye-Chem Limited with BASF India Limited. Rationale The Scheme of Amalgamation (Scheme) is pursuant to the unification of Ciba Group Companies with the BASF Group worldwide. The Scheme would enable BASF India Limited better economics of scale, higher productivity and optimum utilization of resources, strengthening of its financial position, achieve synergies in business and functional areas, further development and growth of R and D activities and stronger capital base. In addition the business of Ciba Group Companies in India also complements BASFs portfolio, thus creating expanded value chain in India.
PAGE NO. : 20
The Scheme was approved by the Board of Directors of the respective Companies and the valuation of the business carried out by 2 independent valuer viz. Ernst and Young Private Limited and Deloitte Touche Tohmatsu India Private Limited. The independent merchant banker JM Ginancial Consultants Private Limited have also expressed opinion that the exchange ratios pursuant to the Scheme of arrangement are fair from a financial point of view to the holder of equity shares of BASF India Limited. Share Exchange Ratio : 90 Equity Shares of Rs. 10/- each fully paid up of BASF India Limited for every 100 Equity Shares of the Ciba India Limited of Rs. 10/- each, fully paid up and 18 Equity Shares of Rs. 10/- each fully paid up of BASF India Limited for every 100 Equity Shares of t he Ciba Research India Private Limited of Rs. 10/- each fully paid up/ Investment to the extent of entire 100 % held by Ciba India Limited in Diamond Dye-Chem Limited shall stand cancelled. Treatment of Fractional Entitlements No fractional coupons will be issued by BASF India Limited in respect of the tractional share entitlements, if any, to which the members of Ciba India Limited. As provided in the Scheme of Amalgamation, the functional share entitlements will be mailed to the members of Ciba India Limited. Holders of less than 2 Equity Shares in Ciba India Limited shall not be entitled to issue or allotment of any shares in BASF India limited but shall receive the sale proceeds of their fractional entitlements.
CMT REPORT (Corruption, Money Laundering & Terrorism]
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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. 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. Asset Declaration : No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction. Record on Financial Crime :
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Charges or in-adfactor from 203.115.115.2 on ISIEmergingMarketsPDF conviction registered against subject: 2011-12-15 01:37:27 EST. DownloadPDF.None 5] Records on Violation of Anti-Corruption Laws : Charges or investigation registered against subject: Records on Intl Anti-Money Laundering Laws/Standards : Charges or investigation registered against subject: None
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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. 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. 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. Press Report : No press reports / filings exists on the subject.
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CORPORATE GOVERNANCE
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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 companys 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 US Dollar UK Pound Euro Unit 1 1 1 Indian Rupees Rs. 45.29 Rs. 73.84 Rs. 64.18
SCORE & RATING EXPLANATIONS SCORE FACTORS RANGE
PAGE NO. : 23
POINTS
HISTORY 1~10 8 PAID-UP CAPITAL 1~10 9 OPERATING SCALE 1~10 9 FINANCIAL CONDITION --BUSINESS SCALE 1~10 9 --PROFITABILIRY 1~10 9 --LIQUIDITY 1~10 9 --LEVERAGE 1~10 8 --RESERVES 1~10 9 --CREDIT LINES 1~10 8 --MARGINS -5~5 DEMERIT POINTS --BANK CHARGES YES/NO NO --LITIGATION YES/NO NO --OTHER ADVERSE INFORMATION YES/NO NO MERIT POINTS --SOLE DISTRIBUTORSHIP YES/NO NO --EXPORT ACTIVITIES YES/NO YES --AFFILIATION YES/NO ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF. YES --LISTED YES/NO YES --OTHER MERIT FACTORS YES/NO YES TOTAL 78 This score serves as a reference to assess SCs 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%) Credit history (10%) Ownership background (20%) Market trend (10%) Payment record (10%) Operational size (10%)
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RATING EXPLANATIONS
RATING >86 71-85 Aaa Aa
STATUS Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums Overall operation is considered normal. Capable to meet normal commitments. Capability to overcome financial difficulties seems comparatively below average.
PROPOSED CREDIT LINE Unlimited Large
56-70
Fairly Large
41-55 26-40 11-25 <10 -
Ba B Ca C NB
Satisfactory Small
Adverse factors are apparent. Repayment of interest and principal sums Limited with full in in-adfactor from 203.115.115.2 onupon maturity default or expected to be in default 2011-12-15 01:37:27 EST. DownloadPDF. security ISIEmergingMarketsPDF Absolute credit risk exists. Caution needed to be exercised New Business Credit not recommended -

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INDIA@BASF_INDIA_LIMITED_-_143047_27-MAY-2011

MIRA INFORM REPORT

Country : Financials (as on) : Date of Incorporation : Com. Reg. No.:

ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF.

Capital Investment / Paidup Capital : CIN No.:

RATING & COMMENTS MIRAs Rating : Aa (78)

Maximum Credit Limit : Status : Payment Behaviour : Litigation : Comments :

ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF.

Unit I: Unit II: Branches :

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ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF.

5,742,192 701,589 294,301 291,049 3,252 8,712,246 11,542,420 43,285,640 -

13.27 1.62 0.68 0.67 0.01 20.13 26.67 100.00 100.00

ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF.

Banking Relations : Auditors : Name :

ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF.

Of the above Issued for consideration other than cash

1259.400 211.500 90.000 68.400

1168.600 40.000 119.000 23.600

(G) (H) (I)

1513.700 545.600 968.100

1080.100 391.700 686.400

930.000 336.300 593.700

ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF.

598.900 676.900 14.400 1290.200

566.100 608.800 48.200 1223.100

370.300 492.200 12.800 875.300

4772.400 71.500 2.100 1504.200 6350.200 25.00

3858.300 101.800 0.800 762.300 4723.200 23.16

2451.000 27.600 0.000 754.600 3233.200 21.06

ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF.

Activities and Product

ISIEmergingMarketsPDF in-adfactor from 203.115.115.2 on 2011-12-15 01:37:27 EST. DownloadPDF.

RATING >86 71-85 Aaa Aa

PROPOSED CREDIT LINE Unlimited Large

41-55 26-40 11-25 <10 -

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