KERALA MONITOR SPECIAL REPORT :
Crisil Reports on Indian Companies
My son is facing a serious threat to his life in the Gulf
*By Ajaya Kumar
Thiruvananthapuram: December 31, 2000: Damodaran and Saraswathy Amma are really worried about the fate of their 33 year old son, Damodaran Sasikumar, who has been in the Gulf facing a serious threat to his life from his Arab sponsor. This old couple residing at Kunnu Vila Veedu, Payattuvila near Thiruvananthapuram in Kerala say that the sponsor, an Arab policeman working in the Royal Oman Police, threatened to kill their son and treat the death as a simple accident or suicide!
Last August their son Shashikumar was put behind the bars for about two weeks on the basis of some false allegations made by the "the influencial Arab sponsor." Virtually Shashikumar has been living a hide and seek game for the last six months trying to save his life from the sponsor and his gang who have been after his blood. "My sponsor and his gang are trying to kill me," his son said in a complaint to the Indian Ambassador, Muscat. Is this incident a clear indication towards the large number of mysterious deaths of Indians in the Gulf region?
Damodaran told Kerlamontior that that his son is left with no money or resources to fight a protracted legal battle in an alien land. On one occasion, the sponsor and a group of Arabs forcefully made their son sign blank papers to make false records showing that all the claims are settled. Besides snatching away his partnership business which was prospering, they have also taken possession of two cars, mobile phone and the construction material. Now Shashikumar wants to get back at least his car, phone, salary arrears for several months and compensation for putting him in jail without any valid reason.
I will fight it out...Shashikumar Damodaran Shashikumar had been running a small construction business in the Gulf country under the sponsorship of the Arab policeman-a common practice among ordinary Arabs. According to Damodaran, Shasikumar went to Oman about in 1992 and four years back started a small construction contract business under the sponsorship of Samir Muftah Juma Al Salmi, Mahboob Trading Company at Sumail. This is the normal practice followed by Indian businessmen to start small and medium scale business with the help of an Arab sponsor, who will be a "sleeping partner". The sponsor gets a regular monthly payment in return for his sponsorship.
Shashikumar represents hundreds of small and medium scale businesses run by Indians, especially Keralites, in this manner. The business which Shashikumar started at a very small scale improved to such an extent that the company was implementing a number of construction projects. According to Shashikumar's parents, the sponsor suddenly changed his attitude when more money started coming in from the business.
According to a complaint made by Shashikumar to the Indian Prime Minister's Office his sponsor has publicly threatened to kill him. "I have been working under the sponsorhip of Mr. Samir Muftah Jammera Al Salni, Jabal Al Mahboob Trading PO Box 470, PIN 620, Sumail for more than four years. I have been working as full in charge of the company . Now a days I am facing severe harassment from my sponsor who is working in the Royal Oman Police," says the complaint dated August 28, 2000. A copy of the complaint, written in broken English, was sent to the Kerala Chief Minister E.K Nayanar also.
"I am desired to acknowledge the receipt of your letter received in this office and to inform that it is being forwarded to the Foreign Secretary, Ministry of External Affairs New Delhi for action as appropriate." Said Rohit Khera, Officer on Special Duty in a letter from the Prime Ministers Office. Similarly, K.K. Suresh Babu, Deputy Secretary of Non Resident Keralites Affairs Department has also forwarded a copy of the memorandum to the Ambassador and MoE for appropriate action.Now another memorandum is being forwarded to the Member of Parliament, Thiruvananthapuram. "I am very sorry to inform you that my sponsor has declared in public that he will kill me with his lorry and will try to make the result of (police) investigation in such a manner that the killing will be reported either as an accident or a suicide," the complaint to Atal Behari Vajpayee added. Because of this open death knell from a local Police official, Sashikumar sought asylum in the Indian Embassy in Muscat-the last resort for any Indians facing any crisis situation. The embassy asked him to file a case.
"With reference to your complaint dated 14.08.2000 against your sponsor M/s. Jabal Al Mahboob Trading, PO Box 470, Sumail …regarding non payment of salary, service benefits and repatriation, you are advised to approach the NEAREST Labour Court to register complaint against your sponsor," says an official letter signed by T.R. Meena, Labour Attache, Indian Embassy Muscat. Following this, Shashikumar made a complaint to the Labour Court in Sumail. "I have filed a petition in the Sumail Labour Court. But I am very afraid to appear before the Labour Court," says Shashikumar's complaint to the Indian Prime Minister.
According to Shashikumar's father, the indifferent attitude of the Indian Embassy is another bitter experience faced by his son. The embassy officials who are supposed to help an ordinary businessmen during such crisis situation have willy nilly helped the sponsor to put him in prison for two weeks. " One of the staff of the Indian Embassy, Mr. Abdul Rahman is the eye witness of this harassment. On 6 November 2000 Abdul Rahman representing the Indian Embassy escorted my son to the Sumail Police Station to register a complaint to get back his car and mobile phone from the sponsor. But instead of recovering these items, his son was also kept in prison for two weeks. Instead of helping him, the embassy official just escorted him to the prison," says a terribly upset Damodaran. "My son was not presented before any court or given any charge sheet for theft, as alleged by the sponsor clearly showing that the charges were baseless," added Damodaran. No all Indian and Malayali businessmen in the Gulf are saints -they also do some dubious deals here and there. In this case, Shashikumar's parents say that their son is not involved in any such deals.
He managed to get out of the prison and continue the fight with the help of a few Malayali friends who are currently giving him food, accommodation and moral support. "I did not get salary from May till today. I did not get the leave salary and ticket during the last four years," Shashikumar said in a complaint to the Ambassador, requesting him to take necessary steps for recovering his car, GSM and arrears from the sponsor. He has also demanded that the case be transferred from Sumail Labour Court to Muscat Labour Court or the Commercial Court in Muscat.
The event shows the scant regard and respect shown by powerful Arabs towards the Indian Embassy -which is representing the soverign, democratice republic of India. According to the advise given by Indian embassy offcials to Shashikumar, if an Indian is working in the Arab country, all such bad treatment is expected. Does it mean that the Indian embassy also endorses the ill treatment of Indians by their overseas employers?
In the company of Big Business: Indian Ambassador in the company of the biggest Malayali businessman--Chairman of Dubai based Lulu Shopping Cente and MK Group of companies -- the biggest expatriate investor in the GCC region.
According to information available here, Sasiumar was imprisoned for 12 days by the Royal Oman Police on the basis of false allegations made by his sponsor. It is said that by making false allegations of theft, robbery or other crimes against Indians, the Arab sponsors can easily put an Indian behind the bars. The legal and judicial system in the Arab countries is such that even the innocent expatriate victims will not be able to prove their innocence without proper legal assistance.
Despite severe problems faced from the powerful Arab sponsor, his 33 year old son has been firm in his determination to fight against the false allegations and to recover at least part of the business that he established over the last four years and other payment arrears. Even though the Prime Ministers Office and the Kerala Chief Ministers office have written to the Indian embassy in response to the complaints made by Shashikumar, the Indian Ambassador in Muscat seems to be reluctant to meet this poor man who lost everything that he earned in the last four years. Even after repeated efforts to meet the Indian Ambassador personally, he was denied access by the embassy staff. The old parents are eagerly waiting for the safe return of their dear son. Now Shashikumar is scared even to go to the Indian embassy, thinking that he will be sent to jail again. His fear is that next time he will never be able to come out and meet his old parents. After Shashikumar showed some guts to make a formal complaint to the Indian Prime Minister, the embassy officials are also said to be more furious.
It may be noted that there are number of cases where Malayali families have complained about missing sons and relatives in the Gulf region. The case of Shashi Kumar is not an isolated event in the Gulf. According to a Gulf returned Malayali, a major chunk of his saving was lost in a hotel project which was taken away by the Arab sponsor just one day before the inauguration! A property developed by two Malayali businessmen with a local partner was usurped forcibly by the sponsor. The Malayali businessmen had to no other option but to leave empty handed- that also with the support of embassy officials. If this is happening at the grass root level, what is the guarantee for billions of Indain money invested in major projects in the Gulf countries.
Hundreds of such small shops in the Gulf are run by Malayalis
There are thousands of small and medium sized business establishments registered with various ministries in the Gulf region. Expatriates manage and operate these firms through disguised trade. According to a recent estimate made by the Emirates Center for Strategic Studies and Research, Abu Dhabi, there are more than 33,000 establishments with a capital of less than Omani Rial 5,000 and Omani Rial 10,000 (Five lakh to 11 lakh Indian rupees) registered in Oman. According to the study thousands of such small business establishment are run by expatriate businessmen, especially Indians and Malayalis under the sponsorship scheme. In many cases, the involvement of Arab partners is to get a share of the profit made by businesses run by expatriates. According to rules, foreigners are not allowed to have legal right over property or assets in the GCC. It is high time that the authorities realise the importance of the problem.
Cent Bank Home Finance Limited Fixed Deposit Programme
Bobay January 5, 2001: The "FA" (pronounced 'FA') rating assigned to the fixed deposit programme of Cent Bank Home Finance Limited (CBHFL) has been upgraded to "FA+" (pronounced 'FA plus'). The upgrade reflects improvement in asset quality following settlements arrived at with Karnataka Housing Board, a major overdue account, and some private builders, improvement in the profitability and continued strong support from the parent, Central Bank of India. These factors are partially offset by increasing competition, the high gearing, continuing exposure to private builders, albeit limited and the moderate size of the company.mCent Bank Home Finance Limited (CBHF), a 51% subsidiary of Central Bank of India (CBI), is in the business of providing finance for the construction and purchase of residential houses. The balance 49% of the company's equity is held by HUDCO (17%), NHB (16%) and UTI (16%). The company with its registered office located in Bhopal, disburses loans to individuals as well as private and public bodies and had an outstanding loan portfolio of Rs.164.6 cr. as on March 31, 2000 and reported a net profit of Rs.47.1 mn. on a total income of Rs.242.4 mn.
JP Morgan Securities (India) Private Limited
Rs. 1 Billion Short Term Debt Programme
The 'P1+' (pronounced P one plus) rating assigned to the Rs. 1 billion Short Term debt Programme of JP Morgan Securities (India) Private Limited (JPMSI) has been reaffirmed.The rating reflects the strong parentage, well-defined risk management systems and strong liquidity position of the company. The rating is constrained by the moderate capitalisation and the inherent risks in fixed income securities trading business in terms of susceptibility to interest rate movements.JPMSI is one of the sixteen RBI approved primary dealers (PDs) operating in the country. The company had a net worth of Rs. 1151.30 million as at March 31, 2000 and reported a PAT of Rs. 307.84 million for the year ended March 31, 2000.
NATIONAL THERMAL POWER CORPORATION LIMITED
Rs. 1.33 Billion Bonds Issue AAA(Reaffirmed)
Rs. 0.54 Billion Bonds Issue AAA(Reaffirmed)
Fixed Deposit Programme FAAA(Reaffirmed)
Rs. 2.5 Billion Commercial Paper Programme P1+(Reaffirmed)January 5, 2001: The 'AAA' (pronounced 'triple A') rating assigned to the Rs. 1.33 billion and Rs. 0.54 billion bond programmes of National Thermal Power Corporation Ltd. (NTPC) has been reaffirmed. The 'FAAA' (pronounced 'F triple A') rating assigned to the fixed deposit programme of NTPC has been reaffirmed. The 'P1+' (pronounced 'P one plus') rating assigned to the Rs.2.5 billion commercial paper programme of NTPC has been reaffirmed.
The ratings reflect the dominant position of NTPC in the domestic power generation industry that is characterised by low demand risk, the company's track record of efficient operations and its competitive cost structure. The sound financial profile of the company as reflected in the high level of margins, comfortable and improving gearing and interest coverage ratios and stable cash flows from operations, has also been factored. These strengths are partly offset by the high and increasing level of debtors on account of the weak financial position of State Electricity Boards (SEB), and the tightening of tariff norms by The Central Electricity Regulatory Commission (CERC).
NTPC, a 100% Government of India (GoI) owned company is engaged in the business of establishing and operating thermal power stations and selling power to SEBs. The company had an installed capacity of 19291 MW as at March 31, 2000. For the year ended March 31, 2000, the company had operating income and net profit of Rs.160.91 billion and Rs.34.25 billion, respectively.
Thermax Limited
Rs. 350 mn. Commercial Paper Programme P1+ (Reaffirmed)
The "P1+" (pronounced P one plus) rating assigned to the Rs. 350 Million Commercial Paper Programme of Thermax Limited (Themax) has been reaffirmed.The rating takes into account the strong market position of Thermax in its product segments, a large product mix and a strong financial profile characterised by fairly large networth, low gearing and strong liquidity position. These factors are partially offset by the sluggish performance of the capital goods sector, and its impact on the company's turnover and profitability.
Thermax's business portfolio has traditionally been divided into three segments - energy, environment & chemicals. The company has recently undergone a restructuring exercise whereby the overall business of the company has been realigned. The entire restructuring exercise has been based on the recommendations of Boston Consulting Group (BCG). The company has identified four focus areas - boiler and heating systems, absorption cooling, water and waste management, and chemicals. The company has decided to exit out of businesses, which do not have synergies with the identified core areas. Hence, Thermax exited out of Thermax Systems and Software Ltd, which it sold to Global Tele Systems in an all share swap, and sold its industrial fans division to Universal Fans. The company also closed down Thermax Fuji Electric Ltd., a joint venture between Thermax and Fuji Electric of Japan, involved in the manufacture of electrical equipment like transmitters, controllers, recorders, flowmeters, etc. Apart from business restructuring, the company also undertook a management restructuring. The board of Thermax at present constitutes non - executive directors, who will not be directly involved in the day to day operations of the company.For the year 1999-00, Thermax reported a net turnover of Rs. 3820 million and a profit after tax of Rs. 323 million.
Thermax Culligan Water Technology Limited
Rs. 40 Million Non-Convertible Debenture Issue AA- (so) (Reaffirmed)
The "AA-(so)" (pronounced "double A minus structured obligation") rating assigned to the Rs. 40 million Non-convertible Debenture issue of Thermax Culligan Water Technology Ltd. (TCW) has been reaffirmed. The instrument is guaranteed by Thermax Limited (Thermax).TCW currently has a weak financial position as reflected in its negative networth as on March 2000. For the year ended March 2000, the company reported a gross turnover of Rs. 233 million and a loss of Rs. 78.4 million. The rating is however solely based on the unconditional and irrevocable guarantee extended by Thermax to be executed in favour of the investors. The scope of the guarantee covers servicing of all interest payment and principal repayment obligations of the rated debt.
Credit Enhancement:
The credit enhancement mechanism specified by CRISIL, to ensure timely servicing of obligations under the rated instruments, comprises execution of Guarantee Agreement by the Guarantor (Thermax) in favour of the debenture-holders. TCW is required to service its obligations to the debenture -holders on Trigger Dates (Three days prior to the applicable "due dates"). In the event of failure of TCW to honour its obligation on the Trigger Dates, the investors are entitled to invoke the guarantee to ensure timely payment w.r.t. the debt service obligations.Samsung India Electronics Limited
Rs. 500 Million Commercial Paper Programme P1+ (Enhanced from Rs 250 Million)
A "P1+" (pronounced 'P one plus') rating has been assigned to the Rs. 500 Million (Mn) Commercial Paper Programme of Samsung India Electronics Limited (SIEL) (Enhanced from Rs 250 Mn).The rating reflects the company's comfortable & improving business position in the highly competitive consumer electronics market established within a relatively short span time. The company has achieved a considerable success in establishing its brand name in the Indian market through aggressive advertising and marketing push coupled with its innovative & technologically advanced product offerings. The rating also factors SIEL's favourable financial risk profile as reflected by its strong growth in operating income, comfortable accruals and capital structure, strong cash-flow protection measures and its favourable working capital management & liquidity position. The rating also reflects the company's strong relationship with its parent- Samsung Electronics Company (Rated "BBB-" by Standard & Poor's).
Samsung India Electronics Limited (SIEL) was incorporated in August 1995 as a JV between Samsung Electronics Company (SEC), South Korea and an Indian partner. SIEL is engaged in the manufacturing and sale of consumer electronics items and home appliances. Starting with the launch of Colour Televisions (CTVs) in the North Indian markets in December 1995, SIEL has aggressively expanded its product range over the years to include Microwave Ovens (MWOs), Refrigerators, Washing machines, Air Conditioners, DVDs and VCDs. SIEL's turnover has grown rapidly, assisted by the favourable growth in the CTV market and stable growth rates in the refrigerator segment, over the past few years. For the year ended December 1999, the company reported an operating income of Rs. 6530.0 Million and a profit after tax of Rs.269.3 Mn.
Atlas Cycle Industries Limited
Rs. 165 Million Non Convertible Debenture Issue A+ Reaffirmed
January 4, 2001
The reaffirmation in Atlas's rating is on account of the company's leading position in the Indian cycle industry and a conservative financial risk profile. While Atlas is relatively less profitable than the other major cycle companies, the company has a strong brand and a large dealer network in a consolidated industry with fairly strong entry barriers. The rating also factors in the company's leveraging remaining at current levels and flat sales and profits in the 2000-01.Atlas was set up in 1951 to manufacture bicycles and at present has three manufacturing locations with a total capacity of 33.40 lakh cycles. For the half year ended Sept 30, 2000 Atlas made a profit of Rs.41.3 Mn (Rs.40 Mn in FH 1999-00) on sales of Rs. 1840 Mn.
Hero Cycles Limited
Rs. 200 Million Non Convertible Debenture Programme AA+ Reaffirmed
Rs. 400 Million Commercial Paper Programme P1+ ReaffirmedThe "AA+" (pronounced 'double A plus') rating assigned to the Rs 200 million Non Convertible Debenture Programme of Hero Cycles Limited (HCL) has been reaffirmed. The "P1+" (pronounced 'P one plus') rating assigned to the Rs 400 million Commercial Paper Programme of the company has also been Reaffirmed.
HCL's rating reflects its dominant position in Indian cycle industry coupled with its management's demonstrated ability to sustain market share and the strength derived from being the most profitable cycle manufacturer. The rating also factors in the company's favourable financial risk profile characterised by stable gearing and high debt protection ratios which is expected to remain comfortable in the absence of any major capital expenditure/ investment programs. However the ratings are to an extent constrained by the low growth and margins in the bicycle business, competitive environment for the CR division and the support extended to other companies in the Hero Group.
Hero Cycles Limited is a part of the 3,800 crore Hero group which includes Hero Honda (FAAA), Munjal Showa (P1+), Highway Cycle Industries, Gujarat Cycles & Majestic Auto. HCL has bicycle manufacturing facilities at Ludhiana and Sahibabad (UP) with installed capacities of 36 lakh bicycles and 9 lakh bicycles p.a. respectively. HCL also has a cold rolling mill at Ludhiana with an installed capacity of 110,000 tpa. For the year ended March 31st, 2000 HCL posted a profit after tax of Rs 421 Million on a sales of Rs 8.2 Billion.
January 4, 2001
Indian Farmers Fertiliser Cooperative Limited (IFFCO)
Rs. 4 billion Bonds Programme AA (Enhanced from Rs. 2 billion)
A "AA" (pronounced 'double A') rating has been assigned to the Rs 4 billion Non Convertible Bonds Programme (enhanced from Rs. 2 billion) of Indian Farmers Fertiliser Cooperative Limited (IFFCO). The rating reflects IFFCO's strong position in both the nitrogenous and non-nitrogenous fertiliser industry, comfortable business position of its urea operations, large sized operations (in terms of revenues and cash flows) and the relatively new facilities which provide the company with strong operating efficiencies. The rating also favourably takes into account the strong support base existing in the country for agriculture and the regulatory support in terms of markets and assured returns to urea manufacturers. However, uncertainty pertaining to continuation of this regulatory support, in the present form, in the future is a constraining factor. The rating is also constrained by low operating margins of IFFCO's complex fertiliser division due to various extraneous factors, increase in inventory (and competition) in recent years and vulnerability of the fertiliser business to monsoons.
IFFCO, set-up as a co-operative society, is the largest fertiliser manufacturer in the country. It is engaged in the manufacture of urea as well as complex fertilisers at four locations in Uttar Pradesh and Gujarat. It reported a PAT of 1400.5 million (unaudited) on sales of Rs. 25735.0 million (unaudited), after taking into account the effect of interim reassessment of capacity of its urea plants, for the half year period April-September 2000.January 4, 2001
Reckitt Benckiser (India) Limited
Rs. 150 Million Non-Convertible Debenture Issue AAA (Re-affirmed)
Rs. 250 Million Commercial Paper Programme P1+ (Re-affirmed)The 'AAA' (pronounced 'triple A') rating assigned to Rs. 150 million Non Convertible Debenture issue of Reckitt Benckiser (India) Limited (RBIL) (erstwhile Reckitt & Colman of India Ltd) has been reaffirmed. The 'P1+' (pronounced 'P one plus') rating assigned to Rs. 250 million Commercial Paper Programme of RBIL has also been reaffirmed.
The ratings continue to reflect RBIL's continued leadership position in the various niche segments in household and over-the-counter (OTC) pharmaceutical product categories, its strong brand franchises with good pricing flexibility, well established distribution network and the company's favourable financial risk profile as reflected by its above average profitability, conservative financial policy and favourable cash-flow protection measures. These factors are, somewhat, tempered by the company's narrow product diversity and its vulnerability to competition in the household products category. The ratings also factor the support to RBIL's from its parent, Reckitt Benckiser Plc. (rated "A/Stable/A-1" by Standard & Poor's) in terms of access to brands, product formulations and marketing support.
RBIL, a 51% subsidiary of Reckitt Benckiser Plc. (RBP), is engaged in the manufacture and marketing of household products and OTC pharmaceutical products. While the household products segment comprises of products in fabric care, shoe care, surface care, insecticides and toilet care range, the OTC product segment consists of the 'Dettol' range (soap, liquid soap, antiseptic and shaving gel) and pharmaceutical products such as 'Disprin' and 'Colsprin'. The company reported a net profit of Rs. 140.24 million (Mn) on a net sales of Rs 4735.5 Mn for the year ending December 31, 1999, it reported a net profit of Rs. 209.1 Mn on a net sales of Rs 4274.8 Mn during the first nine-months of FY 2000.
During 1999, RBIL's erstwhile parent, Reckitt Colman Plc. had merged globally with Benckiser NV, Netherlands to create Reckitt Benckiser Plc, which is one of the leading players in the global house-hold cleaning product market, with leading brands in the various niche categories. Inline with the change in the parentage, the name of the Indian entity has also been changed to Reckitt Benckiser (India) Ltd from Reckitt & Coleman of India Ltd. The global merger is not only expected to add significantly to the RBIL's product portfolio, but also introduce more focus on cost rationalisation, inline with erstwhile Benckiser's philosophy, thus helping the Indian entity in its future growth and improving its cost structure.
January 4, 2001
Sanghi Industries Limited
Rs. 120 Million Non-Convertible Debentures AAA (so)
(Backed by an unconditional and irrevocable guarantee from Power Finance Corporation Ltd.)A 'AAA (so)' (pronounced 'triple A structured obligation') rating has been assigned to the proposed Rs. 120 million non-convertible debenture issue of Sanghi Industries Limited (SIL). The rating is based solely on the strength of an unconditional and irrevocable guarantee from Power Finance Corporation Limited (PFC) for an amount equal to the principal repayment and interest payment obligations on the debentures. The rating is also supported by a credit enhancement mechanism and a payment structure to ensure timely payment of debt obligations on the rated debentures. The rating reflects the credit strength of PFC, which has an outstanding long-term rating of 'AAA' (pronounced 'triple A') from CRISIL. The 'AAA' rating of PFC reflects its dominant position as a lender in the power sector, the support available from the Government of India due to its important policy role in the development of the country's power sector, the high level of capitalisation and healthy profitability. However, the rating sensitivities include dependence on a single sector, deteriorating financial position of majority of its customers - the state electricity boards (SEBs) and increasing exposure to foreign currency risk.
The salient features of the credit enhancement mechanism are:
· SIL is required to transfer an amount equivalent to the forthcoming interest payment and/ or principal redemption obligations on the rated debentures to the No-lien Account at least 5 business days (Trigger Dates) before the payment becomes due (Due Dates). The company would be required to furnish to the Trustees a certificate from the Bank certifying that the amount has been deposited by the company in the said No-lien Account.
· The Trustee is required to monitor the balance in the No-lien Account on the Trigger Dates prior to every Due Date for payment of interest and/ or principal repayment to ensure that adequate funds are available for servicing the financial obligations on the rated debentures.
· The Trustees are required to invoke the Guarantee in the event of shortfall in the No-lien Account on the Trigger Dates (and/ or if any of the various other events of default as specified in the Trustee Agreement happen) to ensure full and timely payment to the debenture holders.
The above rating would become valid only upon completion of the Guarantee Agreement, No-lien Account Agreement, the Debenture Trustee Agreement, and other documentation to the satisfaction of CRISIL. The role of Trustees forms an important and critical link to ensure the desired performance of the credit enhancement mechanism.
SIL is engaged in the manufacture and sale of PVC foam, rigid PVC films, adhesive tapes, pressure sensitive BOPP tapes and electrical insulation tapes. The company is setting up a 2.6 MT per annum (tpa) capacity cement plant at Kutch (in Gujarat) along with the associated infrastructural facilities like captive power plant, captive all-weather jetty and water desalination plant. The above debenture issue is proposed to fund the 45 MW captive power plant. The total project cost, which is currently estimated at around Rs. 11.9 billion, has increased significantly from the original cost estimates of around Rs. 6.6 billion in mid-1990s due to delay in implementation. Most of the increase in project cost has been funded through additional loans and preference shares. The project is being financed at a debt-equity ratio of around 6.3 times. SIL has already spent around Rs. 862 crore on the project till date. The entire balance debt funding of Rs. 257 core has been tied-up from various banks and institutions. As per the revised estimates, the clinker project is expected to be commissioned by April 2001 and the cement plant by around July 2001. Any further delay in the implementation may lead to further increase in the project cost.
For the year ended 30 Sept. 2000, SIL made a profit of Rs. 1.77 crores on net sales of Rs. 81.74 crores.
January 4, 2001
COPE BACKS PACKTECH INTERNATIONAL MID EAST GROW
Dubai: The UK-headquartered Confederation of Organisers of Packaging Exhibitions (COPE) has accepted the PackTech International show in Dubai, United Arab Emirates, as a new member, ensuring the event, to be next held in January 2003, gains widespread global exposure.
Membership of COPE means the Dubai show will now be marketed at major packaging industry events around the world.Though PackTech International has previously been staged in conjunction with printing and plastics shows, the organisers, Fairs and Exhibitions, say it will now be a dedicated vertical event reflecting region-wide growth in the packaging sector. PrinTech International will run simultaneously in an adjacent hall.
"We are re-launching the show into a vertical B2B packaging exhibition - PackTech International," explained Clive Richardson, Chief Executive, Fairs and Exhibitions, which organises the show. "Whilst the show has generated useful growth over the five years of its existence, it has not grown in line with the development of the industry serving the wide Middle East, where per annum growth figures of 30% are now being quoted.
"With COPE's support and a stronger emphasis on packaging, speedier growth is possible."Last September, PackTech 2000 attracted almost 5,000 visitors from 44 countries.
"What was particularly significant was the spread of the visitor base," said Clive Richardson, Chief Executive, Fairs and Exhibitions, which organises the show. "Though 75% of the visitors came from within the six GCC states of Bahrain, Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates, there were healthy showings from the wider Middle East, most notably Iran, North Africa, the Levant and Indian Sub-continent."
Almost half the visitors represented companies with 50 or more employees and more than half specialised in the packaging and bottling sectors. "Close to 2,000 visitors said they had purchasing authority of over US $100,000, with nearly 900 having authority to spend upwards of US $500,000," said Richardson.Declared on-site sales amounted to US $3 million with exhibitors expecting to quadruple business generated in follow-through orders.
"Overall exhibitor satisfaction as shown through an on-site pool, was very high," said Val Don, Project Manager, Fairs and Exhibitions. "Exhibitors particularly commented on the high quality of visitors and their overall intention of discussing genuine business at the show.Exhibitors from 29 countries participated in the exhibition, which featured a 28-strong group delegation from Taiwan, industry pavilions from Iran, Italy and France as well as first-time exhibitors from both Latvia and Russia.
*Ajaya Kumar is in the Keralamonitor.com team of reporters
Photographs by Iqbal Hameed
