MIRA INFORM REPORT

 

 

Report Date :

24.11.2006

 

IDENTIFICATION DETAILS

 

Name :

PRINCE PIPES & FITTINGS PVT LTD

 

 

Formerly Known As :

PRINCE PIPES & FITTINGS PVT LTD

 

 

Registered Office :

“Ruby House”, 4th Floor, ‘B’ Wing, J. K. Sawant Marg, Dadar (West), Mumbai – 400028, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

13.11.1987

 

 

Com. Reg. No.:

11-45287

 

 

CIN No.:

[Company Identification No.]

U26932MH1987PTC045287

 

 

IEC No.:

0391155652

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMP06179F

 

 

PAN No.:

[Permanent Account No.]

AAACP2319J

 

 

Legal Form :

Private Limited Liability Company.

 

 

Line of Business :

Manufacturers of PVC Pipes, Fittings & Valves and as such are the only reportable segment as per Accounting Standard on Segment Reporting.

 

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 1000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having fine track. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are fair. Payments are correct and as per commitments.

 

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

 

LOCATIONS

 

Registered Office :

“Ruby House”, 4th Floor, ‘B’ Wing, J. K. Sawant Marg, Dadar (West), Mumbai – 400028, Maharashtra

Tel. No.:

91-22-24382555

Fax No.:

91-22-24382220

E-Mail :

ppf@vsnl.com

Website :

http://www.princepipes.com

Area :

7163 sq. fts. (Owned)

 

 

Head Office :

312, Chyrchgak Chambers, New Marine Lines, Mumbai, Maharastra, India 

 

 

Factory :

Athal Road, Village Athal, Survey No. 132/1/1/3, Naroli, Silvassa – 396235, Dadra and Nagar Haveli

Tel. No.:

91-260-2640007

Fax No.:

91-260-2640082

Area :

19905 sq. fts. (Owned)

 

 

Factory :

Jayant Desai Marg, Survey No. 53 & 92, Vaghdhra Road, Dadra – 396191

Tel. No.:

91-260-2668091

Fax No.:

91-260-2668090

Area :

18100 sq. fts. (Owned)

 

DIRECTORS

 

Name :

Mr. Jayant S. Chheda

Designation :

Managing Director

Address :

756, 5th Floor, Garden View Building, M. J. Road, Dadar (East), Mumbai – 400014

Age :

59 years

Qualification :

Inter Arts

Experience :

35 years

 

 

Name :

Mr. Parag J. Chheda

Designation :

Whole Time Director

Address :

756, 5th Floor, Garden View Building, M. J. Road, Dadar (East), Mumbai – 400014

Age :

34 years

Qualification :

Associated Business Administration – USA

Experience :

9 years

 

 

Name :

Mr. Vipul J. Chheda

Designation :

Whole Time Director

Address :

756, 5th Floor, Garden View Building, M. J. Road, Dadar (East), Mumbai – 400014

Age :

30 years

Qualification :

B. Com.

Experience :

8 years

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Percentage of Holding

Mr. Jayant Shamji Chheda

240,000

7.999

Mr. Parag Jayant Chheda

899,900

29.994

Mr. Vipul Jayant Chheda

900,000

29.997

Mrs. Tarla Jayant Chheda

957,000

31.897

Jayant Shamji Chheda (HUF)

3,000

0.100

Mrs. Heena P. Chheda

100

0.003

Mrs. Ashwini V. Chheda

100

0.003

Prince Multiplast Private Limited

100

0.003

Pinnacle Electronics Private Limited

100

0.003

TOTAL

3,000,300

100.000

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of PVC Pipes, Fittings & Valves and as such is the only reportable segment as per Accounting Standard on Segment Reporting.

 

 

Products with ITC Code :
  1. 3917.00 – Pipes and Fittings (Joints, Elbows of Plastic)
  2. 8481.00 – Taps, Cocks, Valves and Similar Appliances for Pipes
  3. Injections Moulding and Extruders 

 

 

Brand Names :

“PRINCE”

 

 

Terms :

 

Selling :

Credit (45-60 days) or Document Against Payment

 

 

Purchasing :

Cash or L/C (90 days)

 

PRODUCTION STATUS

 

Particulars

 

Unit

Installed Capacity

Actual Production

 

 

 

 

 

PVC Pipes

 

M.T.

12600

10674

PVC Fittings

 

M.T.

4520

3736

PP-R Pipes

 

M.T.

400

62

PP-R Fittings

 

M.T.

67

3

 

GENERAL INFORMATION

 

No. of Employees :

390

 

 

Bankers :

Bank of India , D. N. Road Branch

 

 

Facilities :

Secured Loan

(figures are in millions)

 

2004

2003

From Bank of India

  1. Working Capital
  2. Terms Loans (Due within one year Rs. 21.167 millions, previous year Rs. 35.762 millions)

 

69.800

40.437

 

77.872

82.398

From Others

  1. Short Term Borrowing from Bank (Buyer’s Credit)

51.475

0.000

Total

161.712

160.270

 

Note:

 

  1. Working Capital Loans are secured by the hypothecation of company’s inventory and receivables and also by the personal guarantee of the Directors.
  2. Term Loans, Corporate Loans and Demand Loans are secured by Equitable Mortgage of the company’s movable properties at village Athal and Dadra. Dadra and Nagar Haveli and by hypothecation of movable machinery and plant at its Athal and Dadra factories and also by the personal guarantee of the Directors.
  3. Short Term Borrowings (Buyer’s Credit) are secured as follows:
    1. Rs. 10.812 millions by way of 100% Margin Money.
    2. Rs. 16.112 millions by way of carmarking Cash Credit Limit.
    3. Rs. 24.550 millions by way of carmarking L/C Limit.

 

Unsecured Loan

(figures are in millions)

 

 

 

From Directors

17.184

17.858

From Shareholders

4.692

3.694

Inter Corporate Loan 

1.645

1.570

Total

23.521

23.122

 

 

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

L. D. Joshi and Company

Chartered Accountants

Address :

2-G, Court Chambers, 2nd Floor, (Behind Income Tax Office), 35, New Marine Lines, Mumbai – 400 020, Maharashtra, India  

Tel. No.:

91-22-22003058/ 22005568

 

 

Associates :

Ø       Prince Marketing

C/o. Ruby House, 4th Floor, ‘B’ Wing, J. K. Sawant Marg, Dadar (West), Mumbai – 400028

Line of Business: Trading

 

Ø       Pinnacle Electronics Private Limited

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

12,000,000

Equity Shares

Rs. 10/- each

Rs. 120.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

3,000,300

Equity Shares

Rs. 10/- each

Rs. 30.003 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

30.003

30.003

30.003

2] Reserves & Surplus

223.560

192.957

157.044
NETWORTH

253.563

222.960

187.047

LOAN FUNDS

 

 

 

1] Secured Loans

31.168

161.712

160.270

2] Unsecured Loans

19.362

23.521

23.122
TOTAL BORROWING

50.530

185.233

183.392
 

 

 

 
TOTAL

304.090

408.193

370.439
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

208.458

182.915

205.796
Capital work-in-progress

3.322

0.601

0.000
 

 

 

 
INVESTMENT

7.074

7.141

11.880
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
160.754
122.497

73.414
 
Sundry Debtors
148.923
105.367

97.536
 
Cash & Bank Balances
13.355
20.827

4.467
 
Other Current Assets
29.782
0.000

0.000
 
Loans & Advances
25.889
33.258

12.240
Total Current Assets

378.703
281.949

187.657
Less : CURRENT LIABILITIES & PROVISIONS

293.467
64.604

35.291
Total Current Liabilities

293.467
64.604

35.291
Net Current Assets

85.236
217.345

152.366
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.188

0.397
 

 

 

 
TOTAL

304.090

408.193

370.439

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2005

31.03.2004

31.03.2003
Sales Turnover [including other income]

1010.773

697.622

664.136
 

 

 

 
Profit/(Loss) Before Tax

38.807

42.571

2.973
Provision for Taxation

3.118

3.274

0.230
Profit/(Loss) After Tax

35.689

39.297

2.743
 

 

 

 
Export Value

26.924

1.492

4.388
 

 

 

 
Import Value

187.873

120.625

15.672
 

 

 

 
Total Expenditure

932.933

655.050

661.163

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2005

31.03.2004

31.03.2003
PAT / Total Income
(%)

3.53
5.63

0.41
 
 

 
 

 
Net Profit Margin

(PBT/Sales)

(%)

3.84
6.10

0.44
 

 

 
 

 
Return on Total Assets

(PBT/Total Assets}

(%)

6.61
9.00

0.73
 

 

 
 

 
Return on Investment (ROI)

(PBT/Networth)

 

0.15
0.19

0.01
 

 

 
 

 
Debt Equity Ratio

(Total Liability/Networth)

 

1.36
2.12

2.17
 

 

 
 

 
Current Ratio

(Current Asset/Current Liability)

 

1.29
4.36

5.31

 

LOCAL AGENCY FURTHER INFORMATION

 

The company’s Fixed Assets of important value includes:

 

Ø       Land

Ø       Building

Ø       Plant and Machinery

Ø       Electrical Installations

Ø       Computer

Ø       Moulds and Dies

Ø       Office Equipments

Ø       Furniture and Fixtures

Ø       Vehicles

 

Subject exports PVC Pipes and Fittings to African countries and Middle East Asia.

Trade References:

·         Mohamed Ould Abdulla Estate

·         Chamber Investment

·         Faza Trading Company

·         Al Anas Building Mat. Company

 

Subject imports PVC raw materials from USA and Europe.

Trade References:

·         Oxyde Chemical

·         Mitsubishi Corporation

 

Subject is in trade terms with the following:

 

·         N. K. Polymers, Gujarat, India

Contact Person: Mr. Haresh Bhai: Tel.: 91-79-26891164

 

·         Pipe Linkers, Delhi, India

Contact Person: Mr. Parveshji, Tel.: 91-11-23275721

 

·         Pintu Udyog Private Limited, Guwahati, India

Contact Person: Mr. Pavanji: Tel.: 91-361-2522348

 

As Per Web Details

 

Profile

 

Ever since its inception, it has been the endeavor of Prince to be the best. Right from the very first products today’s diverse range of products, the very same principle applies the pursuit of excellence. Having already anticipated the opportunities and also the competition, at Prince we deployed our resources judiciously to meet the incoming challenges.

 

Today, armed with a global prospective together with a diverse and impressive business portfolio, we march towards becoming a significant member of the global village.

 

We at Prince emphasis on a synergy of manpower and technology, which are the two factors that we intended to deploy to the fullest, to achieve mission which is growth and bring to reality our vision which is global.    

 

Since 1970, PRINCE is a brand name synonymous with high utility plastic products.


Click for Large Image    In 1983, PRINCE started manufacturing uPVC Pipes & Fittings for use in water supply & distribution system in Agriculture, Construction, Industries, and Commercial & Residential Premises.

 

OUR QUALITY PHILOSOPHY

We are committed to entirely satisfy our customers by

1. Providing Quality Goods

2. At competitive prices

3. Using ethical business practices

4. Emphasizing on a synergy of manpower and technology,

5. Without harming the environment

PRINCE Pipes, Fittings & valves are available throughout India & abroad through a wide spread dealer network of over 1500 nos.


PRODUCT RESEARCH, DESIGN & DEVELOPMENT :

 

ISO 9001 Certified Design Process Utilizes - State-of-the-Art Computer Aided Engineering (CAE) - Technology In Developing Quality Engineered Products.


Manned by thorough professional and equipped with the latest technologies today, function like moulds designing and manufacturing, material evaluation, product design, product validation, product upgradation etc. are the scope of operations in which this department has made vital inroads.

 


CORPORATE OFFICE AT MUMBAI


The company commitment starts with you -- our customers! from your first inquiry, you'll find a friendly, courteous staff ready to meet your needs.

 

PRINCE commitment focuses on quality at the source ------ the manufacturing process. Innovative engineering combined with years of experience results in consistent quality in every product.

MANUFACTURING UNITS :

                                                                                                              

Company equipped with 30 PLC based, high precision injection moulding machines in prime condition, with range of 50 tonnes to 650 tonnes clamping force for manufacturing of uPVC fittings with annual processing capacity of 5000 tonnes.

 

As well 10 nos. of twin-screw Extruders for manufacturing uPVC pipes from 20 mm to 315 mm diameters, with annual processing capacity of 15000 tonnes.

 

None Surpasses Our Product Availability! We Maintains One Of The Largest Inventories In The Industry To Expedite Delivery Of Your Piping System Needs.

 


PRINCE introduces the world's most advanced Potable water system used for both Hot and Cold Water supply.

 

The PP-R Pipes & Fittings are manufactured according to the International Standards using Polypropylene Random Copolymer (PP-R). The most important property of this raw material is its excellent resistance to Heat and Chemicals.

 

Major advantages of PP-R Pipes & Fittings

 

Ø       Very long lasting for more than 50 years·

Ø       Suitable for long term hot water transmission·

Ø       Resistant to Corrosion, do not rust.

Ø       Higher resistance against Chemicals·

Ø       Smooth Bore, low friction, low pressure loss.

Ø       Easy and Fast to install·

Ø       Safer & Leak-proof Jointing·

Ø       Lower Thermal Conductivity·

Ø       Low Noise·

Ø       Non Toxic & Odor Free

 

Applications of PP-R Pipes & Fittings

 

Ø       Used for both Hot water & Cold water supply as well as heating and
air-conditioning systems in residential and industrial buildings.

Ø       Transport of liquid food products such as oil, wine, milk, beer, etc.

Ø       Transport of industrial fluids·

Ø       Transport of Compressed Air. 

 

 

Quality Management Systems

 

PRINCE ISO 9001 certified quality assurance process integrates a system of continual product and process verifications to exacting standards and requirements.

 

PRINCE has initiated several new quality methods and ensures compliance to the same during each stage of functioning. Its quality practices are relevant to Indian and international standards. Company has license to use the prestigious ISI mark on its products covered under Indian standards.

 

Key Contacts :

Institutional Sales           : mktg@princepipes.com

Export Sales                      : export@princepipes.com

Domestic Sales                 : sales@princepipes.com

Purchase                           : purchase@princepipes.

 

 

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.44.64

UK Pound

1

Rs.86.51

Euro

1

Rs.58.62

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

 

63

 

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