MIRA
INFORM REPORT
|
Report Date : |
29.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
PAHARPUR INDUSTRIES LIMITED |
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Registered Office : |
806 / 807 Ashoka
Estate, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.10.1936 |
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Com. Reg. No.: |
55-564 |
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CIN No.: [Company
Identification No.] |
U74899DL1936PLC000564 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELP08276C /
DELP03762D |
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PAN No.: [Permanent
Account No.] |
AAACP1205F |
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Legal Form : |
A
closely held public limited liability company. |
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Line of Business : |
Manufacturing
of plastic products such as plain flexible films, laminated flexible films
and plastic pouches, etc. |
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 |
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Maximum Credit Limit : |
USD 123120 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an
established company having fine track. Its trade relations are fair.
Financial position is satisfactory. 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 : |
806 / 807 Ashoka
Estate, |
|
Tel. No.: |
91-11-23357846 /
26207727 / 28 |
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Fax No.: |
91-11-23357851 /
26452736 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Corporate Office : |
2 – A, Paharpur Business Centre, 21, |
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Tel. No.: |
91-011-6207727 / 28 |
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Fax No.: |
91-011-6452736 |
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E-Mail : |
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Manufacturing Units : |
Paharpur – 3P, Plot No. 19, Site IV, Industrial Area, Sahibabad, Tel. No.: 91-120-4772001 / 2 / 6 Fax No.: 91-120-4771901 Plot No. 45 / 2, Site IV, Industrial Area, Sahibabad, Tel No.: 91-120-4771666 / 1659 Fax No.: 91-120-4778423 E-Mail: pidel1@del2.vsnl.net.in |
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Regional Office : |
8 / 1B, Tel No.: 91-33-4792050 / 2152 / 53 / 54 / 57 Fax No.: 91-33-4796861 E-Mail: pilccu@pilpack.com Mumbai Office : 7th Floor, Manak Mahal, Tel No.: 91-22-2881513 / 1567 Fax : 91-22-2042831 Chennai office: 4th Floor, Park View Complex, 85, Tel No.: 91-44-8203271 / 0533 / 0535 / 3807 Fax : 91-44-8200534 41, Tel No.: 91-80-2382524 / 3025 Fax : 91-80-2253999 |
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DIRECTORS
|
Name : |
Mr. Mahendra
Swarup |
|
Designation : |
Director |
|
Address : |
283, |
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Date of Birth/Age : |
01.02.1920 |
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Date of Appointment : |
26.10.1994 |
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Name : |
Mrs. Gyan M.
Swarup |
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Designation : |
Director |
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Address : |
2 B, |
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Date of Birth/Age : |
13.06.1924 |
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Date of Appointment : |
28.12.1989 |
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Name : |
Mr. Gaurav Swarup
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Designation : |
Director |
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Address : |
2 B, |
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Date of Birth/Age : |
02.11.1956 |
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Date of Appointment : |
26.10.1994 |
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Name : |
Mr. Vikram Swarup
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Designation : |
Director |
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Address : |
2 B, |
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Date of Birth/Age : |
16.09.1948 |
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Date of Appointment : |
03.02.1999 |
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Name : |
Mr. Sujit Shome |
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Designation : |
Director |
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Address : |
2 B, |
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Date of Birth/Age : |
22.07.1937 |
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Date of Appointment : |
03.02.1999 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mrs. Sushila
Kirula |
|
250 |
|
Mr. Gopal Raj
Swarup |
|
1250 |
|
Mr. Balbir Chand
Kapur |
|
310 |
|
Mr. Mahendra
Swarup |
|
1000 |
|
Mr. Vikram Swarup
|
|
1500 |
|
Mr. Gaurav Swarup
|
|
1000 |
|
Mr. Vimal Chandra
Hoon |
|
600 |
|
Mr. |
|
120 |
|
Panarpur Cooling
Towers Limited |
|
1703720 |
|
Mr. Ramesh Kumar
Shukla |
|
50 |
|
Mr. Mahesh Kumar |
|
50 |
|
Mr. Ashok Bhatia |
|
50 |
|
Mr. Badri Prasad
Gupta |
|
50 |
|
Mr. Rajinder
Singh Tanwat |
|
50 |
|
Total |
|
1710000 |
|
Category |
|
Percentage of
Holding |
|
Bodies Corporate |
|
99.66 |
|
Director of relatives of directors |
|
0.34 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
of plastic products such as plain flexible films, laminated flexible films
and plastic pouches, etc. |
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|
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Exports : |
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Products : |
Flexible Packing |
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Countries : |
UAE, |
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Imports : |
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Products : |
Machinery and Spares |
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Countries : |
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Terms : |
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Selling : |
L/C, Credit and Cash |
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Purchasing : |
L/C, Credit (60 days), Cash and Sight |
GENERAL INFORMATION
|
Customers : |
Locals Customers and End Users © HLL-Shampoo
Division © HLL-Ice Cream
Division © HLL-Food
Innovation Centre © HLL-Bangalore © HLL-Trichy © HLL-Ghaziabad © ITC Agrotech
Limited. © Pennzoil India
Limited. © Dabur India
Limited. © Mother Dairy
Limited. © Indian Rayon
Industries © JK White Cement © MRF Limited © SKF Bearings
Limited © Fenner India
Limited © Asian Paints
India Limited © Heinz India
Limited © Rich Kwality © Bayer India
Limited. © Prasad Polypack
Limited. © Pepsi © Tata Tea
Limited. © Eveready
Industries Limited. © Van Melle
Confectionery © Paramount Food |
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No. of Employees : |
352 (40 Office, 312 Factory) |
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Bankers : |
Ř
ABN Amro Bank NV, ITC Centre, 1, Ř
Standard Chartered Bank, Sansad Marg, Ř
BNP Parybas, Ř
ABN Amro Bank, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Gupta Garg and
Agarwal Chartered
Accountants |
|
Address : |
G – 55, Branch : 304, Tel No.:
91-4510523 / 4514551 |
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Tel. No.: |
91-11-22202455 /
22215914 |
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Fax No.: |
91-11-22418599 |
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|
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Associates/Subsidiaries : |
Ř
Paharpur Cooling Towers Limited Paharpur
Business Centre, 21, Ř
Paharpur Cooling Tower Limited Kolkata
and Sahibabad |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7000000 |
Equity Shares |
Rs.10/- each |
Rs.70.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1710000 |
Equity Shares |
Rs.10/- each |
Rs.17.100
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
17.100 |
17.100 |
17.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
13.680 |
20.157 |
13.571 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
30.780 |
37.257 |
30.671 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
16.386 |
55.122 |
5.000 |
|
|
2] Unsecured Loans |
14.886 |
(2.639) |
42.125 |
|
|
TOTAL BORROWING |
31.272 |
52.483 |
47.125 |
|
|
DEFERRED TAX LIABILITIES |
4.392 |
11.374 |
6.919 |
|
|
|
|
|
|
|
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TOTAL |
66.444 |
101.114 |
84.715 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
19.816 |
45.300 |
46.946 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.067 |
0.068 |
0.067 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
22.418 |
33.789 |
27.619 |
|
|
Sundry Debtors |
17.382 |
21.413 |
22.656 |
|
|
Cash & Bank Balances |
5.110 |
0.585 |
1.778 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
13.034 |
16.338 |
15.517 |
|
Total
Current Assets |
57.944
|
72.125 |
67.570 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
10.891
|
12.928 |
27.405 |
|
|
Provisions |
0.492
|
3.451 |
2.463 |
|
Total
Current Liabilities |
11.383
|
16.379 |
29.868 |
|
|
Net Current Assets |
46.561
|
55.746 |
37.702 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
66.444 |
101.114 |
84.715 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
145.214 |
195.745 |
236.399 |
|
|
Other Income |
0.435 |
0.054 |
|
|
|
Total Income |
145.649 |
195.799 |
|
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(13.252) |
11.980 |
12.796 |
|
|
Provision for Taxation |
(6.775) |
3.394 |
5.517 |
|
|
Profit/(Loss) After Tax |
(6.477) |
8.586 |
7.279 |
|
|
|
|
|
|
|
|
Imports Value |
NA |
7.841 |
5.443 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
99.564 |
98.452 |
133.312 |
|
|
Increase/(Decrease) in Finished Goods |
2.986 |
0.238 |
-- |
|
|
Salaries, Wages, Bonus, etc. |
2.537 |
12.686 |
-- |
|
|
Payment to Auditors |
0.090 |
0.077 |
-- |
|
|
Interest |
3.069 |
3.172 |
-- |
|
|
Insurance Expenses |
0.633 |
0.914 |
-- |
|
|
Power & Fuel |
8.289 |
15.214 |
-- |
|
|
Depreciation & Amortization |
4.498 |
5.743 |
6.344 |
|
|
Other Expenditure |
37.235 |
47.323 |
81.967 |
|
Total Expenditure |
158.901 |
183.819 |
221.623 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
(4.44)
|
4.38 |
3.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(9.12)
|
6.12 |
5.41 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(17.04)
|
10.20 |
11.17 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.43)
|
0.32 |
0.41 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.36
|
1.84 |
2.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.09
|
4.40 |
2.26 |
LOCAL AGENCY FURTHER INFORMATION
|
Name of the company |
PAHARPUR
INDUSTRIES LIMITED |
|
Presented
By |
Company and ABN AMRO Bank |
|
1) Date and description of instrument creating the change |
Facility cum hypothecation agreement dated 04.04.2000 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 50.000 Millions (Cash credit limit / WCTL for working capital and import letter of credit) |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Borrower hereby hypothecate to the charges in favour of bank by way of first charge on all the book debts and all other movable assets of the company described in general terms i.e. first charge over the company’s stocks and book dens, stocks consist of raw material, spares, semi finished and finished goods in progress and all such tangible movable property lying in company’s factory Godown or in transit |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest for cash credit 16 % p.a. + Interest tax for WCTL 16 % p.a. + Interest tax for issue of LC as per FEDAI / RBI |
|
5) Name and Address and description of the person entitled to the charge. |
ABN Amro Bank N. V. ITC Centre, Kolkata – 700071 |
|
6) Date and brief description of instrument modifying the charge |
Supplemental facility cum hypothecation agreement dated 15.01.2002 |
The company is in trade terms
with the following:
♦
Flex Foods Limited,
♦
Flex Foods Limited,
♦
Flex Industries Limited
♦
Paper Products Limited, Mumbai
Fixed Assets
♦
Land
♦
Building
♦
Plant
and Machinery
♦
Furniture
and Fixture
♦
Vehicles
Website Details Attached
Company Details:
The Paharpur group consists of the holding company Paharpur Cooling
Towers Limited along with its various divisions and subsidiaries. The group
also has major stakes in two Indo German companies KSB Pumps and Krupp
Industries Ltd (formerly known as Buckau Wolf India Ltd) and a major national
polyester yarn manufacturing Co. M/s. Swadeshi Polytex Ltd. The holding company
has been a market leader in process cooling and heat transfer equipments. It is
closely held, with a turnover of over Rs. 4000 million. The group has
manufacturing facilities located in and around
About PIL
Paharpur Industries Limited (PIL) is a wholly owned
subsidiary of Paharpur Cooling Towers Limited. They have two factories located
at Sahibabad on the Delhi-U.P Border out of which the 3P plant is fully
air-conditioned with state- of- the- art machineries and equipments. More than
90% of the machines and equipments are imported and in line with the latest
technology. PIL is the only plant in the country to have a 12 colour Rotomec printing
machine, added to it is another latest generation printing machine
Rotopack-3000 3R. 
PIL has been accredited internationally with Gold Star award
for innovation in pouch making. They have their own power generation and a
labour free plant. Because of own power generation the production process would
be free from any kind of power disruptions that can happen otherwise if
depended on the electricity board. Labour free plant means all workmen are
graded staff, which would keep the plant running efficiently as the workmen
cannot indulge in forming any type of union, or hamper the work processes.
With all these PIL has an installed capacity to produce 8000MT of flexible
laminate per annum. This speaks for their delivering the right quality material
at the right time to their customers. PIL is a professionally managed company
having their corporate office at
PIL manufactures a wide range of packaging products, from
multi-layer co-extruded films to laminates and pouches, to meet the varied
requirements of its customers. PIL excels in aseptic packaging for food
industry as per international standards. The majority of the business
contributions are from the leading multinational, transnational & major
FMCG companies. PIL is well qualified to assist customer from the selection of
the appropriate packaging to the development of most cost effective production
line.
PIL also has technical agreement with Safta S.P.A,
PIL believes that continuous innovation, highest production standards as well
as good customer service at the highest degree of quality guarantees years of
successful operation Expect the most unexpected in the market. The growth plan
of PIL is expected from the shift in focus i.e. from domestic to international
market. To achieve such high growth plans PIL aligns its operations at par with
international quality standards and norms apart from prompt deliveries.
To build a reputation in the industry by practicing a strategy that incorporates ethics, transparency, social responsibility, quality and commitment to their stakeholders in all their activities.
Maintaining leadership through technology in the Flexible packaging industry.
Their Corporate Values can be best
described by the diagram below.
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 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.41.12 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.56.03 |
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 |
5 |
|
--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 |
|
61 |
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. |
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 |
|