MIRA INFORM
REPORT
|
Report
Date : |
01.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
AVERY
DENNISON INDIA PRIVATE LIMITED |
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Registered
Office : |
Block
B-1, Plot No.F-2, Mohan Cooperative Industrial Estate, Mathura Road, New
Delhi-110044 |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
08.12.1995 |
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Com.
Reg. No.: |
55-74475 |
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CIN
No.: [Company
Identification No.] |
U74899DL1995PTC074475 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
DELA05957A |
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PAN
No.: [Permanent
Account No.] |
AAACA6163D |
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Legal
Form : |
Private Limited Liability Company |
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Line
of Business : |
Manufacturer and Exporter of Self Adhesive Paper and Self
Adhesive Film. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
1300000 |
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Status
: |
Satisfactory
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well-established company engaged in manufacturing and marketing of Self
Adhesive Tapes and Films. The company’s financial position is comfortable. It
has excellent infrastructure facility to carry on its business efficiently. The
company’s trade relations are reported as fair. Payments are correct and as
per commitments. It can be
considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Block B-1, Plot No.F-2, Mohan Cooperative Industrial
Estate, Mathura Road, New Delhi-110044 |
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Tel.
No.: |
91-11-41639393 |
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Fax
No.: |
91-11-41639292 |
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E-Mail
: |
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Head Office
: |
204-206, Tolstoy House, 15 Tolstoy Marg, Connaught Place,
New Delhi-110001, |
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Tel.
No.: |
91-11-23714408/ 10 |
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E-Mail
: |
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Website
: |
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Area : |
2350 sq. ft. |
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Location : |
Leased |
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Corporate
Office : |
Narsinghpur Industrial Area, 6 K. M. Delhi-Jaipur highway,
Gurgaon, |
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Tel.
No.: |
91-124-2215581/ 582/ 583 |
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Fax
No.: |
91-124-2215591/592 |
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E-Mail
: |
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Area : |
6 Acres |
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Location : |
Industrial |
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Factory
: |
Narsinghpur Industrial Area, 6 K. M. Delhi-Jaipur highway,
Gurgaon, |
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Tel.
No.: |
91-124-2215581/ 582/ 583 |
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Fax
No.: |
91-124-2215591/592 |
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E-Mail
: |
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Area : |
6 Acres |
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Location : |
Industrial |
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Factory
1 : |
E-514, Greater Kailash II, New Delhi-110048, |
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Tel.
No.: |
91-11-41639393 |
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E-Mail
: |
DIRECTORS
|
Name : |
Mr. Anish Ghoshal |
|
Designation
: |
Director |
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Address
: |
402,
Rocky Hill, Rizvi Complex, |
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Date
of Birth: |
16.09.1964 |
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Date of
Appointment: |
04.01.1996 |
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|
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|
Name : |
Mr. Raja Gopal Srinivasan |
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Designation
: |
Director |
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Address
: |
C 164, DDA Flats, Saket, |
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Date
of Birth: |
02.09.1959 |
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Date
of Appointment : |
06.05.1996 |
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|
|
|
Name : |
Mr. Robert
G. Van Schoonenberg, |
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Designation
: |
Director |
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Address
: |
Orange
Grove Boulevaro, Pasadena, California-91103, |
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Date
of Birth: |
18.08.1946 |
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Date
of Appointment : |
06.05.1996 |
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|
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Name : |
Mr. Richard
P. Randall, (Foreigner) |
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Designation
: |
Director |
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Address
: |
Orange
Grove Boulevaro, Pasadena, California-91103, |
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Date
of Appointment : |
29.09.1997 |
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|
Name : |
Mr. Rodri Guez Karyn, (Foreigner) |
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Designation
: |
Director |
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Address
: |
Orange
Grove Boulevaro, Pasadena, California-91103, |
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Date
of Appointment : |
21.06.2001 |
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Name : |
Mr.
Chittaranjan Dua |
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Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K. S. Murali |
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Designation
: |
Director
(Finance)/ Company Secretary |
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Address
: |
D/3,
3072, Vasant Kunj, New Delhi-110070 |
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Date
of Birth/Age : |
20.05.1966 |
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Date
of Appointment : |
03.03.2000 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Avery
Dennison Corporation, |
21474466 |
99.00 |
|
Avery
Pacific |
216914 |
1.00 |
|
Total |
21691380 |
100.00 |
As on 31.03.2006
Foreign holdings : 100%
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer
and Exporter of Self Adhesive Paper and Self Adhesive Film. |
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Products
: |
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Agencies
Held : |
v
Avery Dennison Corporation, v Avery Pacific Corporation, |
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Exports
to : |
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Imports
from : |
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Terms
: |
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Selling : |
L/C, cash or Credit (45 days) terms |
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Purchasing : |
L/C terms |
PRODUCTION STATUS
|
Particulars |
|
Unit
|
Installed Capacity |
Actual Production |
|
|
|
|
|
|
|
Self
Adhesive Paper and Film |
|
Sq. Mtrs. |
30,000,000 |
30,000,000 |
|
Self
Adhesive Papers |
|
|
-- |
171,821,904 |
|
Self
Adhesive Tapes |
|
|
-- |
1,667,895 |
GENERAL INFORMATION
|
Customers
: |
Ř
Wholesalers Ř End Users |
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|
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No. of
Employees : |
415 |
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Bankers
: |
v
American Express Bank Limited v
Deutsche Bank, Tolstoy House, |
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Facilities : |
Subject enjoys Cash Credit facility of Rs. 250.000
millions from its bankers |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Lovelock
and Lewes Chartered
Accountants |
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Address
: |
PWC
Centre, Saidulajaiv, M |
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Tel.
No.: |
91-11-26864390/26523750 |
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Fax
No.: |
91-11-26864391 |
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Subsidiaries
: |
v
RVL Packaging India Private Limited (Wagle) Industrial Area, Thane – 400604, Tel No.: 91-22-25823881/ 4141/ 4131/ 5781 Fax No.: 91-22-25823208 v
Avery Dennison de Brazil Ltda – v
Avery Dennison v
Avery Dennison v
Avery Dennison v
Avery Dennison v
Avery Dennison v
Avery Dennison v
Avery Dennison Kunshan Company Limited v
Avery Dennison Packaging Label – Kunshan v
Avery Dennison ( v
Avery Dennison, v
Jackstadt v
Avery Dennison, Luxemborg v
Avery Dennison, v Avery Dennison, v Avery Dennison Singapore Pte
Limited v Avery Dennison, v Avery Dennison, France v Avery Dennison Stimsonite, v v Avery Dennison APG v Avery Dennison, v Avery Dennison, v Avery Dennison, |
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|
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Holding
Companies : |
v
Avery Dennison Corporation, v
Avery Pacific Corporation, |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2,47,50,000 |
Equity Shares
|
Rs.10/- |
Rs. 247.500 millions |
Issued
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2,47,50,000 |
Equity
Shares |
Rs.10/- |
Rs. 247.500 millions |
Subscribed
& Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2,16,91,380 |
Equity
Shares |
Rs.10/- |
Rs. 216.914 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 (12 Months) |
31.03.2005 (15 Months) |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
|
216.914 |
216.914 |
|
|
2]
Reserves & Surplus |
|
132.562 |
68.649 |
|
NETWORTH
|
|
349.476 |
285.563 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Unsecured Loans |
|
33.942 |
24.814 |
|
TOTAL
BORROWING
|
|
33.942 |
24.814 |
|
|
DEFERRED
TAX LIABILITIES |
|
0.000 |
8.984 |
|
|
|
|
|
|
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TOTAL
|
|
383.418 |
319.361 |
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|
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|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
|
131.104 |
133.659 |
|
Capital work-in-progress
|
|
53.480 |
2.233 |
|
|
|
|
|
|
|
DEFERRED TAX ASSETS
|
|
2.099 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
117.901 |
88.790 |
|
|
Sundry Debtors
|
|
231.584 |
184.162 |
|
|
Cash & Bank Balances
|
|
8.748 |
6.859 |
|
|
Other Current Assets
|
|
2.483 |
1.415 |
|
|
Loans & Advances
|
|
67.461 |
38.626 |
Total Current Assets
|
|
428.177 |
319.852 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
|
223.514 |
134.706 |
|
|
Provisions
|
|
7.928 |
1.677 |
Total Current Liabilities
|
|
231.442 |
136.383 |
|
Net
Current Assets
|
|
196.735 |
183.469 |
|
|
|
|
|
|
|
TOTAL
|
|
383.418 |
319.361 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 (12 Months) |
31.03.2005 (15 Months) |
|
|
Sales Turnover |
|
1020.929 |
905.201 |
|
|
Other Income |
|
11.941 |
12.941 |
|
|
Total
Income |
|
1032.870 |
918.142 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
101.329 |
106.180 |
|
|
Provision for Taxation |
|
37.416 |
39.159 |
|
|
Profit/(Loss) After Tax |
|
63.913 |
67.021 |
|
|
|
|
|
|
|
|
Imports
: |
|
|
|
|
|
|
Raw Materials |
|
351.094 |
277.113 |
|
|
Stores & Spares |
|
4.841 |
3.888 |
|
|
Capital Goods |
|
5.582 |
5.980 |
|
|
Others |
|
7.134 |
9.999 |
|
Total
Imports |
|
89.009 |
85.900 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Increase/(Decrease) in Finished Goods |
|
32.119 |
27.855 |
|
|
Interest |
|
8.338 |
6.687 |
|
|
Depreciation & Amortization |
|
17.826 |
19.934 |
|
|
Other Expenditure |
|
879.213 |
758.720 |
|
Total
Expenditure |
|
937.496 |
813.196 |
|
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
PAT / Total Income
|
(%)
|
|
6.19 |
7.30 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
|
9.81 |
11.56 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
|
18.11 |
23.41 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
|
0.29 |
0.37 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
|
0.76 |
0.56 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
|
1.85 |
2.34 |
LOCAL AGENCY FURTHER INFORMATION
Subject has shifted their Registered Office from E-514,
Greater Kailash Part II, New Delhi-110048,
To
Block B-1, Plot No.F-2, Mohan Cooperative Industrial Estate,
Mathura Road, New Delhi-110044 with effect from 04.04.2007.
History
Founded
in 1935, Subject is a global leader in pressure-sensitive technology and
innovative self-adhesive solutions for consumer products and label materials.
Based in
Profile
These include Avery-brand office automation products, Fasson-brand self-adhesive materials, reflective
and graphic materials,
peel-and-stick postage stamps,
industrial labeling solutions, automated retail tag
and labelling systems, specialty tapes and chemicals.
More than 21,400 employees
in 275 manufacturing and sales facilities produce and sell Subject products in 89 countries.
The Company's businesses are organized in two
sectors. The pressure-sensitive adhesives and materials sector manufactures Fasson-brand
pressure-sensitive base materials in roll form, which are sold to label
converters and printers for a variety of industrial and commercial
applications. The consumer and converted products sector manufactures a wide
range of Avery-brand products
for home and office.
The Company’s business are organised in three
segments, along with other specialty Converting Business:
Pressure-sensitive materials manufacture
Fasson-brand pressure sensitive base materials, reflective and graphic
materials and performance polymers.
Office and customer Products manufactures a
variety of consumer products under the Avery brand for the office, school and
home.
Retail Information Services provides the retail
and apparel manufacturing industries with a variety of price marking and brand
identification product.
In addition to these business segment, other
specialty Converting Business is comprised of several businesses that produces
postage stamp, battery labels, performance films, as well as a variety of
specialty tapes.
Key Products :
The Company is best known for its Avery-brand office
automation and consumer products, Fasson-brand self-adhesive materials,
reflective and graphic materials, peel and stick postage stamps, industrial
labelling solutions, specialty tapes and performance polymers.
Market Presence
Subject’s self-adhesive technology
and applications are an integral part of products used in virtually every major
market and industry, with product sales in over 85 countries worldwide.
ADDITIONAL
INFORMATION
Subject is a multi-billion dollar specialty chemical,
industrial and consumer products company whose technology is an integral part
of products found in virtually every major industry around the globe. The
company is strongly focused on key markets and product areas where its
proprietory technologies, brand presence and broad range of capabilities
strengthen its global market leadership. The company’s primary business is
organized into two sectors. The pressure sensitive adhesive and materials
sector manufactures pressure sensitive base materials in roll form, which are
sold to label converters and printers for a variety of industrial and
commercial applications.
The consumer and converted products sector manufactures a
wide range of products for the home and office, including desktop printer
labels and cards, binders, indexes and markets as well as a variety of
self-adhesive labels, fastening devices, self-adhesive postage stamps, battery
tester labels and other speciality label products for global markets.
Avery Dennison
Technology
Subject draws upon the material sciences and advances in
adhesive coating and converting technology to develop high- performance
proprietary materials and innovative pressure-sensitive products. Through
applied research, the company develops bas materials with unique properties to
offer its customers a wide range of self-adhesive options such as adhesives and
adhesives systems, papers, films, foils, primers and topcoats, release coatings
and barriers and backing liners.
Subject manufactures self-adhesives materials for variable
information and bar code printing, laser and ink-jet printer product, on demand
tags, tickets and labels for variable imprinting and material for wide format
digital imaging.
Consumer
Products
The company manufactures a wide range of prime labeling
materials and products, such as highly engineered pressure sensitive film
materials, which give plastic containers a clean; “No label” appearance and
thermal transfer labeling for glass containers. Subject also produces a variety
of informational labeling materials to carry product information such as
ingredients, instructions, bar codes and warnings.
Subject manufactures self-adhesive postage stamps, medical
grade adhesive; “Smart” labels like the ones developed to measure available
power in Duracell batteries; security labels that prevent theft or product
tampering; laminated and pressure sensitive films or plastic automotive parts,
reflective films for vehicle graphics and traffic signs: tapes for non
mechanical fastening, bonding and sealing; self-adhesive films for
architectural applications and a wide range of other innovative self-adhesive
products.
Avery’s worldwide materials division manufacturers
pressure-sensitive coated papers, films and foils for a variety of
applications, including promotional and decorative packaging security labeling,
product identification, information processing and variable information
printing. Specialty tapes division produces pressure-sensitive adhesive tapes in
double-coated, single-coated and unsupported transfer form, which are
engineered into tape products to meet the fastening, bonding and sealing needs
of the appliance, automotive, electronics, medical and consumer markets.
Worldwide graphics division employs short-run printing technology to serve the
graphic arts, sign making, vehicle marking and related markets. Chemical
division produce a range of emulsion-based acrylic polymer adhesives and
protective coating t supply internal division and outside customers.
Consumer
& Converted Product Sector
The company manufactures kids products, and laser ink-jet
printer products and label making software, index dividers, ring binders, sheet
protectors, report covers, elasticized folder and a variety of CD-ROM and other
presentation and storage products, markers, fine point markers, pressure
sensitive products and associated labeling machinery and printing equipment for
a wide range of industrial applications, including products of use by
automotive original equipment manufactures and heat transfer labels and
application machinery, tags, tickets and bonding tapes, injection-moulded
plastic fasteners, decorative and functional materials to automotive original
equipment manufacturers etc.
Overview
Subject is a global leader in pressure-sensitive technology
and innovative self-adhesive solutions for consumer products and label
materials. As a multi-billion dollar Fortune 500 company whose pressure-sensitive technology is an
integral part of products found in virtually every major
industry around the globe, Subject develops, manufactures and
markets a wide range of products for consumer and industrial markets.
These include Avery-brand
office automation products, Fasson-brand self-adhesive materials, reflective
and graphic
materials, peel-and-stick postage
stamps, industrial labeling solutions, automated retail tag and labeling
systems, specialty
tapes and chemicals.
More than 21,400
employees in 275 manufacturing and sales facilities produce and sell
Subject products in 89 countries.
The Company's businesses are organized in two sectors. The
pressure-sensitive adhesives and materials sector manufactures Fasson-brand
pressure-sensitive base materials in roll form, which are sold to label
converters and printers for a variety of industrial and commercial applications.
The consumer and converted products sector manufactures a wide range of Avery-brand products for
home and office.
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
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.40.55 |
|
|
1 |
Rs.82.06 |
|
Euro |
1 |
Rs.55.35 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
53 |
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 |