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MIRA
INFORM REPORT
|
Report Date : |
06.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
POLYLINK POLYMERS (INDIA) LIMITED |
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Registered Office : |
229-230, Village – Valthera, Taluka – Dholka,
Dist. – Ahmedabad– 387 810, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.08.1993 |
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Com. Reg. No.: |
04-32905 |
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CIN No.: [Company
Identification No.] |
L17299GJ1993PLC032905 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMP00777A |
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Legal Form : |
A Public Limited Liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of XLPE, MDPE and other plastic compounds like
Silane Grafted Polymeric Compound, Density Polyethylene and Propylene
Copolymers. |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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Maximum Credit Limit : |
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Status : |
Poor |
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Payment Behaviour : |
Slow
but delayed |
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Litigation : |
Unknown
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Comments : |
Financial
position of the company is moderate. The company has substantial accumulated
losses. Payments are slow and delayed due to liquidity problems. The
company can be considered for any business dealings on safe and secured trade
terms and conditions only. |
LOCATIONS
|
Registered Office / Works : |
229-230, Village – Valthera, Taluka – Dholka,
Dist. – Ahmedabad– 387 810, Gujarat,
India |
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Tel. No.: |
91-2714-247456 / 395810 / 395832 |
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Fax No.: |
91-2714-247454 |
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E-Mail : |
prm@polylinkpolymers.com / goyal@polylinkpolymers.com |
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Website : |
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Head
Office : |
506, Saffron Building, 5th Floor, Ambawadi, Ahmedabad
– 380 006, Gujarat, India |
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Administrative Office : |
506, Saffron
Building, Near Center Point, Ambavadi, Dist.
: Ahmedabad - 380 006 State : Gujarat, India |
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Tel.
No.: |
91-79 –
26565200 / 26427800 / 30918115 / 30953932 |
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Fax
No.: |
91-79 –
26421864 |
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E-Mail
: |
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Branches
: |
Delhi Mumbai Kolkata Tel
No. : 91– 33– 22823585 / 22823586 Hyderabad |
DIRECTORS
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Name : |
Mr. U. S. Bhartia |
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Designation : |
Chairman (Non-Executive) |
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Name : |
Mr. J. S. Baijal |
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Designation : |
Director (Independent) |
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Name : |
Mr. Ajay Bhargava |
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Designation : |
Director (Independent) |
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Name : |
Mr. K. M. Lal |
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Designation : |
Chairman and Director (Independent) |
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Name : |
Mr. R. P. Goyal |
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Designation : |
Director (Executive) |
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Qualification : |
B.Com., F.C.A. |
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Date of Appointment : |
01.07.1994 |
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Previous Employment : |
Commercial Manager – Hindustan
Wires Limited |
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Name
: |
Mr. P. R. Mukherjee |
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Designation
: |
Director (Executive) |
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Qualification
: |
M.Sc. Ph.D. |
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Date
of Appointment : |
01.12.1994 |
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Previous Employment : |
General Manager
(Operation) - Incab Industries
Limited |
KEY EXECUTIVES
|
Name
: |
Mr. Hitesh Marthak |
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Designation
: |
Company
Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters & Associates Share holding |
|
|
|
1 . Indian Promoters & Associates |
10662300 |
68.74 % |
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2. Foreign Promoters |
Nil |
Nil |
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Non-Promoters Share holding |
|
|
|
1. Banks |
535500 |
3.45 % |
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2. OCB/NRI |
1343590 |
8.66 % |
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3. Public |
2966710 |
19.13 % |
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4. NRI |
2400 |
0.02 % |
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Total
|
15510500 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of XLPE, MDPE and other plastic compounds like Silane
Grafted Polymeric Compound, Density Polyethylene and Propylene Copolymers. |
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Products : |
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PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
XLPE, MDPE and other plastic compounds |
MT |
-- |
15528 |
5786.171 |
GENERAL
INFORMATION
|
No. of Employees : |
200 |
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Bankers : |
UTI Bank Limited |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
K. N. Gutgutia &Company Chartered
Accountable New
Delhi |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
25,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
15510500 |
Equity Shares |
Rs. 10/- each |
Rs. 155.105 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 [9 Month] |
30.06.2005 [15 Month] |
31.03.2004 [12 month] |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
155.105 |
130.105 |
130.100 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2.500 |
2.500 |
[224.400] |
|
|
4] (Accumulated Losses) |
[111.682] |
[120.861] |
0.000 |
|
|
NETWORTH |
45.923 |
11.744 |
[94.300] |
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|
LOAN FUNDS |
|
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1] Secured Loans |
188.143 |
201.368 |
323.200 |
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2] Unsecured Loans |
33.964 |
11.453 |
6.900 |
|
|
TOTAL BORROWING |
222.107 |
212.821 |
330.100 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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|
|
|
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TOTAL |
268.030 |
224.565 |
235.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
176.621 |
183.773 |
192.900 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
|
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Inventories |
34.810
|
36.259 |
22.200 |
|
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Sundry Debtors |
84.184
|
32.706 |
42.700 |
|
|
Cash & Bank Balances |
3.218
|
2.551 |
4.700 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
6.700
|
5.408 |
7.100 |
|
Total Current Assets |
128.912
|
76.924 |
76.700 |
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|
Less : CURRENT LIABILITIES & PROVISIONS |
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|
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|
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Current Liabilities |
34.350
|
32.821 |
36.400 |
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Provisions |
3.153
|
3.311 |
2.100 |
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Total Current Liabilities |
37.503
|
36.132 |
38.500 |
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Net Current Assets |
91.409
|
40.792 |
38.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
4.700 |
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TOTAL |
268.030 |
224.565 |
235.800 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 [9 Month] |
30.06.2005 [15 Month] |
31.03.2004 [12 month] |
|
Sales Turnover [including other income] |
390.872 |
472.872 |
346.000 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
9.405 |
106.000 |
[15.700] |
|
Provision
for Taxation |
0.226 |
-- |
-- |
|
Profit/(Loss)
After Tax |
9.179 |
106.000 |
[15.700] |
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|
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|
Export
Value |
47.026 |
33.368 |
NA |
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|
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Import
Value |
22.928 |
20.039 |
NA |
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|
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Total
Expenditure |
381.467 |
483.060 |
319.800 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
|
Type |
|
1st Qtr |
2nd Qtr |
|
Sales Turnover |
|
109.600 |
146.000 |
|
Other Income |
|
1.400 |
1.300 |
|
Total Income |
|
111.000 |
147.300 |
|
Total Expenditure |
|
102.200 |
137.100 |
|
Operating Profit |
|
8.800 |
10.200 |
|
Interest |
|
2.900 |
6.600 |
|
Gross Profit |
|
5.900 |
3.600 |
|
Depreciation |
|
4.600 |
4.600 |
|
Tax |
|
0.000 |
0.000 |
|
Reported PAT |
|
1.300 |
-1.000 |
200606 Quarter 1 –
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
(7.349)million Consumption of Raw Materials Rs 95.260 million Staff Cost Rs
3.485 million Other Expenditure Rs 10.764 million Tax Indicates Provision for
Taxation (FBT) EPS is Basic & Diluted Status of Investor Complaints for the
quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter
Nil Complaints Received during the quarter Nil Complaints disposed off during
the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The
above results were taken on record by the Board of Directors at their meeting
held on July 28, 2006. 2. SASF/IDBI has approved the Negotiated Settlement(NS) of
the outstanding loans availed from them. The crystalised amount for the said NS
was Rs 155.00 million in accordance with the said Negotiated Settlement, excess
provision of income amounting to Rs 122.267 million has been written back as
exceptional item of income in the previous year / previous corresponding
quarter. 3. Previous period / year figures have been regrouped wherever
considered necessary. 4. The company has only one segment of activity namely
polymeric compounds.
200609 Quarter 2 –
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 3.033
million Consumption of Raw Materials Rs 116.960 million Staff Cost Rs 3.458
million Other Expenditure Rs 13.606 million Tax Indicates Provision for
Taxation (FBT) EPS is Basic & Diluted Status of Investor Complaints for the
quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 01 Complaints disposed off
during the quarter 01 Complaints unresolved at the end of the quarter Nil 1.
The above results were reviewed by the Audit Committee and approved by the
Board of Directors at their meeting held on October 31, 2006. 2. The above
results are subject to limited review by the statutory auditors of the Company.
3. SASF/IDBI approved the Negotiated Settlement(NS) of the outstanding loans
availed from them. The crystalised amount for the said NS was Rs 155.00 million
in accordance with the said Negotiated Settlement, excess provision of income
amounting to Rs 122.267 million has been written back as exceptional item of
income in the previous year / previous corresponding half year. 4. Interest on
NS for the quarter ended September 30, 2006 is Rs 2.854 million. Upto June 30,
2006 the NS amount was non-interest bearing. 5. Previous period / year figures
have been regrouped wherever considered necessary. 6. The Company has only one
segment of activity namely polymeric compounds.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 [9 Month] |
30.06.2005 [15 Month] |
31.03.2004 [12 month] |
|
Debt-Equity Ratio |
7.55 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
6.35 |
0.00 |
0.00 |
|
Current Ratio |
1.44 |
1.41 |
1.42 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.87 |
1.42 |
1.14 |
|
Inventory |
16.24 |
14.67 |
12.93 |
|
Debtors |
9.88 |
11.38 |
8.49 |
|
Interest Cover Ratio |
2.08 |
4.90 |
0.45 |
|
Operating Profit Margin(%) |
7.34 |
27.91 |
7.74 |
|
Profit Before Interest And Tax Margin(%) |
4.18 |
24.84 |
3.75 |
|
Cash Profit Margin(%) |
5.29 |
22.84 |
-0.65 |
|
Adjusted Net Profit Margin(%) |
2.12 |
19.77 |
-4.64 |
|
Return On Capital Employed(%) |
6.66 |
36.96 |
0.00 |
|
Return On Net Worth(%) |
8.45 |
442.82 |
0.00 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.[0.01] |
|
Low |
Rs.[0.01] |
LOCAL AGENCY
FURTHER INFORMATION
FIXED ASSETS
v Land
v Buildings
v Factory
v Plants Machinery
v Electrical
v Installations
v And Fittings
v Office Equipments
v Computers
v Furniture and Fixture
v Vehicles
v
Capital Advance
OPERATIONS & REVIEW
During the period of nine months under review the company has produced 5813 MT (monthly average 646 MT) of various grade of compound as against the production of 8082 MT (monthly average 539 MT) in the previous period of fifteen months. Thus, the production increased by 20% during the period order review. Total turnover for the period of nine months has been Rs. 433.1 millions (monthly average Rs. 48.1 millions) as compared to Rs. 533.9 millions (monthly average 35.6 millions) in the previous period of fifteen months. Thus, the turnover increases by 35% during the period under review, although there was increase in raw materials prices, fluctuation of US $ against Rupee, reduction of custom duty on finished products and competition from international manufactures.
OUTLOOK
Future outlook of the Industry is bright and lucrative. With the
increased stress on the development of the infrastructure, demand of products
of the company may increase. The company has been continuously trying to grab
new opportunities. The company has developed new strategy of marketing and
encash it in the years to come. Since the margin of XLPE compound gone below,
the company is planning to |develop some new products like color master
batches, XLPE PVC compound, Zero Halogen etc. and develop market for the same.
When an
astute, veteran economist had told a young scientist and prospective son-in-law
at a Harvard cocktails and dinner thirty years ago, “There’s a great future in
plastics, kid! Never forget it!” the boy thought the old man had one too many.
Today plastics and its mind-boggling applications completely dominate their
lifestyle, almost elbowing aside iron and steel. It has transformed their
expectations with a whole new way they define their preferences and appraise
consumer durables before they accept them into the daily lives.
Continuous research and new discoveries in processing hydrocarbons and
inventing new compounds, colours, catalysts and master batches have opened up
unlimited possibilities, accelerating the pace of industrial production in the
world of polymer compounds and plastics.
Blazing a new trail in modern polymers is a name to reckon with—
Infrastructure
Polylink Polymers plays a pivotal in India’s efforts to be self-reliant in
developing and producing polymeric compounds that are in great demand in the
industrial and domestic sector. Promoted by Shri U. S. Bharatiya in 1993, their
state-of-the-art Plant—which is equipped with the foremost processing
machinery, R&D, testing and inspection labs, is situated at Ahmedabad, the
State of Gujarat, in Western India.
The Plant and corporate offices include online connectivity, and are physically
well-connected by land, sea and air with all parts of India and the rest of the
world.
Top qualified and expert professionals in petrochemicals and hydrocarbon
processing and a proactive as well as pragmatic management and marketing team
propel the Company in alignment with high ideals and goals.
Corporate Mission
PPIL believes that “the customer is entitled to the very best as value for
investment.” The Company has strategically chosen to acquire the world’s finest
and proven technology from AEI Compounds, UK [Associated Electrical
Industries].
The pioneers of SIOPLAST technology, AEI Compounds UK is esteemed and sought
after across the globe for its expertise in manufacture of a wide range of
cable insulating compounds up to 33 KV.
Prioritized quality is at the core of all their activities. They aim to improve
the quality of life by producing innovative materials that determine the shape
of things to come and refine modern living. By rallying management insight
along with corporate foresight, they expect to build a global company, to
acquire leadership in polymer compounds, and to be outstanding in every aspect
of their operations and performance.
Company
is engaged in the manufacturing of Polyethylene silane cross-linkable compounds
for Low Voltage and Medium Voltage insulation & jacketing and
Thermoplastic Semi-conducting Compounds for Power Cables.
Cable
Insulation and sheathing Compounds for Telecom Cables
Engineering
Plastic Compounds
a) Polypropylene Compounds filled with Minerals and Glass for Garden
Furniture and other applications
b)
Polypropylene modified with EPDM
c) PBT
filled with Glass, MIneral and Fire Retardant Additives
d) Nylon
filled with Glass, Mineral
e)
Fire-retardant, thermoplastic, polyolefin-based compounds
f) Additive Master Batches
Product
v Compounds for Power Cables
v Compounds for Telecom Cables
v
Polypropylene Filled Compounds
v PBT Reinforced Compounds
v Nylon Filled Compounds
v Fire Retardant Thermoplastic Compounds
v Additive Master Batches
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No 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.44.90 |
|
UK
Pound |
1 |
Rs.85.91 |
|
Euro |
1 |
Rs.57.78 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
1 |
|
OPERATING SCALE |
1~10 |
1 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
1 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
1 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
10 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General 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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|