MIRA INFORM REPORT

 

 

Report Date :

8th May 2006

 

IDENTIFICATION DETAILS

 

Name :

HINDUSTAN POLYAMIDES AND FIBRES LIMITED

 

 

Registered Office :

1004, Peninsula Tower, 10th Floor, Peninsula Corporate Park, G K Marg, Lower Parel (W), Mumbai-400013, Maharashtra, India

 

 

Country :

India

 

 

Financials (as on) :

31.05.2005

 

 

Date of Incorporation :

20th May 1972

 

 

CIN No.:

U17120MH1965PLC015806

 

 

Com. Reg. No.:

15806

 

 

TAN No.:

(Tax Deduction & Collection Account No.)

MUMH07208F / MUMH01668C

 

 

PAN No.:

(Permanent Account No.)

AAACH3757J

 

 

Legal Form :

A closely held public limited liability company

 

 

Line of Business :

The company is engaged in manufacturing of Acetals and Hemiacetals. Organic Surface – active agents

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 1250000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

1004, Peninsula Tower, 10th Floor, Peninsula Corporate Park, G K Marg, Lower Parel (W), Mumbai-400013, Maharashtra, India

Tel. No.:

91-22-56513434 / 26513400-3410

Fax No.:

91-22-56513434

E-Mail :

hpfl@hpfl-India.com

Website: 

http://www.hpfl-India.com

 

 

Corporate Office:

411 Shah and Nahar Industrial Estate, Dr. E Moses Road, Worli Naka, Mumbai – 400018

Tel No:

91-22-5641636

 

 

Factory 1 :

HPFL Estate, 555, Pune Nagar Road, Koregaon Bhima, Taluka- Shirur, Pune-412207

Tel. No.:

91-2137-252227/253475

Fax No.:

91-2137-252327

 

 

Factory 2 :

D-9, MIDC, Kurkumbh, Daund, Pune-413802

Tel. No.:

91-2117-235125 / 235610

Fax No.:

91-2117-235265

 

DIRECTORS

 

Name :

Mr. Rajen K. Mariwala

Designation :

Managing Director

 

 

Name :

Mr. Ravindra k. Mariwala

Designation :

Director

 

 

Name :

Mr. K. V. Mariwala

Designation :

Chairman

 

 

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in manufacturing of Acetals and Hemiacetals. Organic Surface – active agents

 

 

Products :

Product Description

Item Code No. (ITC Code)

Acetals and Hemiacetals

291100-01

Organic Surface – active agents

340290-00

 

 

Exports to :

All over India, North America, South America, Europe and others

 

 

GENERAL INFORMATION

 

 

 

Bankers :

--

 

 

Facilities :

Secured Loans

(Rs in millions)

From Banks

(Secured against first pari passu charge on stocks and receivables)

49.733

Terms Loans

[Repayable with one year - Rs. 19.466 (Previous year: Rs. Nil)] (Secured against equitable mortgage of the office premises and parking spaces on 10th floor of Peninsula Towers, Mumbai, exclusive first

charge on all the immovable and movable assets pertaining to the Benzyl Salicy late plant, first charge on all immovable and movable assets including all movable machineries, fixed assets and current assets both present and future, personal guarantee of the directors of the Company and corporate guarantee from Bombay Oil Industries Private Limited]

105.146

Hire Purchase Finance

[Repayable with one year - Rs.0.817

(Secured against vehicles taken on hire purchase)

 

1.503

Total

156.382

Unsecured Loans

 

Sales Tax deferral

[Repayable with one year - Rs.0.539

11.877

Term Loans from Banks

[Repayable with one year - Rs. 45.000 (Against Demand Promissory Notes and personal guarantee of the director of the Company)

45.000

Total

56.877

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

RSM and Company

Chartered Accountants

 

 

Associates/Subsidiaries :

Ř       Scientific Precision Private Limited

Ř       The Bombay Oil Industries Private Limited

Ř       Scientific Precision Private Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

75000

Equity Shares

Rs. 100/- each

Rs. 7.500 millions

25000

Unclassified Shares

Rs. 100/- each

Rs. 2.500 millions

 

 

 

 

 

Total

 

Rs. 10.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

7323

Equity Shares

Rs. 100/- each

Rs. 0.732 millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2005

31.03.2004

31.03.2003

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

0.732

0.732

3.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

323.524

327.882

237.200

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

324.256

328.614

240.200

LOAN FUNDS

 

 

 

1] Secured Loans

156.382

13.402

55.600

2] Unsecured Loans

56.877

9.732

8.000
TOTAL BORROWING

213.259

23.134

63.600

DEFERRED TAX LIABILITIES

20.349

9.758

0.000
 

 

 

 
TOTAL

557.867

361.506

303.800
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

308.470

190.462

116.500
Capital work-in-progress

33.944

48.845

 
 

 

 

 
INVESTMENT

41.001

40.924

74.000
DEFERREX TAX ASSETS

0.000

0.000

 
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
141.352

69.499

53.100
 
Sundry Debtors
124.889

76.902

86.300
 
Cash & Bank Balances
18.268

13.323

33.900
 
Other Current Assets
0.000

0.000

0.000
 
Loans & Advances
51.919

25.774

29.500
Total Current Assets
336.428

185.498

202.800
Less : CURRENT LIABILITIES & PROVISIONS
 

 

 
 
Current Liabilities
156.347

101.907

84.300
 
Provisions
5.629

2.316

5.200
Total Current Liabilities
161.976

104.223

89.500
Net Current Assets
174.452

81.275

113.300
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.000
 

 

 

 
TOTAL

557.867

361.506

303.800

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2005

31.03.2004

31.03.2003
Sales Turnover [including other income]

843.618

618.719

416.500
 

 

 

 
Profit/(Loss) Before Tax

75.800

72.653

54.700
Provision for Taxation

30.299

20.873

12.500
Profit/(Loss) After Tax

45.501

51.780

42.200
 

 

 

 
Export Value

664.901

475.815

NA
 

 

 

 
Import Value

433.666

233.082

NA
 

 

 

 
Total Expenditure

767.818

546.066

344.000

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2005

31.03.2004

31.03.2003
PAT / Total Income
(%)
5.39

8.37

10.13
 
 
 

j

 
Net Profit Margin

(PBT/Sales)

(%)
8.99

11.74

13.13
 

 
 

 

 
Return on Total Assets

(PBT/Total Assets}

(%)
11.75

19.32

17.13
 

 
 

 

 
Return on Investment (ROI)

(PBT/Networth)

 
0.23

0.22

0.23
 

 
 

 

 
Debt Equity Ratio

(Total Liability/Networth)

 
1.16

0.39

0.34
 

 
 

 

 
Current Ratio

(Current Asset/Current Liability)

 
2.08

1.78

2.27

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Fixed Assets :

 

Ř       Goodwill

Ř       Freehold Land

Ř       Leasehold Land

Ř       Buildings

Ř       Plant and Machinery

Ř       Electrical Installations

Ř       Lab Equipments

Ř       Office Equipments

Ř       Computers

Ř       Furniture and Fixture

Ř       Vehicles 

 

Operations :

 

During the year the Company’s revenue increased from Rs. 618.700 millions to Rs. 843.600 millions on account of strong growth in export. The export increased from Rs. 494.700 millions to Rs. 693.900 millions reflecting a growth of 40 %. The company has proceeded with significant capital expenditure towards the ambitious growth plans for the future. The company has invested in the setting up of a new administrative office as well as R and D center in Mumbai. The company has also commissioned the Benzyl Salicylate Plant at Kurkumbh during the year increasing the capacity to 1000 MT. The Trimethyl Cyclohexyl Saliculate a new products was launched during the current year. PBT has increased marginally by 4.4 % due to steep increased in the prices of Raw Materials and the delay in implementation of sales price increase due to existing contract. Profit after Tax has decreased from Rs. 51.800 millions to Rs. 45.500 millions mainly due to provisions for Deferred Tax.

 

Power and Fuel Consumptions

 

Electricity

Purchased Units (1000/Kwh)

1892.17

1579.91

Total Amount (Rs. Lacs)

69.33

60.06

Rate/Unit (Rs)

3.66

3.80

b) Own Generation

N.A.

N.A.

Coal (used for Boiler)

N.A.

N.A.

d) Furnace Oil

N.A.

N.A.

e) Other internal generation

LD.O./H.S.D.

 

 

Quantity (K.Ltrs.)

1652.09

1467.83

Amount (Rs. Lacs)

392.22

254.95

Average rate (Rs./K.Ltrs.)

23740.83

17369.18

 

Per Tone of production

Per Tone of production

Electricity K. Watts.

298.00

310.00

L.D.O./H.S.D. K. Liters.

0.26

0.29

 

TECHNOLOGY ABSORPTION

Expenditure on Research & Development:

Capital Rs. 24.080 Millions

Revenue Rs. 7.372 Millions

 

FOREIGN EXCHANGE OUTGO

Was Rs.433.666 Millions

 

Geographical Segment

Composition

Domestic

All over India

Exports

North America, South America, Europe and others

 

Particulars

 

Domestic

 

Exports

 

Total

 

Revenue by geographical market

163,073,913

 

693,855,990

 

856,929,903

 

Carrying amount of segment assets

194391,567

 

138,127,314

 

332,518380

 

 

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                   None

 

5]         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. 44.96

UK Pound

1

Rs. 83.42

Euro

1

Rs. 57.00

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

6

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

58

 

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

STATUS

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

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

 

 

 

 

 

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