MIRA
INFORM REPORT
|
Report Date : |
16.02.2007 |
IDENTIFICATION
DETAILS
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Correct Name : |
PBM
POLYTEX LIMITED |
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Registered Office : |
Opposite
Station, Petlad, Anand – 388 450, Gujarat, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.03.1921 |
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Com. Reg. No.: |
04-495 |
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CIN No.: [Company
Identification No.] |
U17110GJ1921PLC000495 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDP01287G |
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PAN No.: [Permanent
Account No.] |
AAACP9271H |
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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 : |
Manufacturer,
Exporter and Supplier of Cotton Yarns, Raw Cotton-Shankar-6 and Organic
Cotton Garments, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
1500000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Trade relations are
fair. General financial position is satisfactory. Payments are reported as
usually correct and as per commitments. The company can be considered good
for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Opposite
Station, Petlad, Anand – 388 450, Gujarat, India |
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Tel. No.: |
91-2697-224001/
224003 |
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Fax No.: |
91-2697-224009 |
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Office: |
Ramakrishna
Chambers, 8th Floor, Alakapuri, Baroda – 390005, Gujarat |
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Head
Office : |
7
Shambhunath Mullick Lane, Kolkata – 700 007, West Bengal, India |
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Tel.
No.: |
91-33-22687024/2086 |
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Fax
No.: |
91-33-22684096 |
DIRECTORS
|
Name : |
Mr.
Krishan Kumar Patodia |
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Designation : |
Chairman
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Name : |
Mr.
Gopal Patodia |
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Designation : |
Managing
Director |
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Name : |
Mr.
Murarilal Patodia |
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Designation : |
Managing
Director |
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Name : |
Mr.
Hariprasad Siotia |
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Designation : |
Director
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Name : |
Mr.
Mohan Kumar Patodia |
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Designation : |
Director
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Name : |
Mr.
Brijbhushanlal Kabra |
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Designation : |
Director
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Name : |
Mr.
Dharam Paul |
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Designation : |
Director
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Name : |
Mr.
Jugalkishore M Todi |
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Designation : |
Additional
Director |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer,
Exporter and Supplier of Cotton Yarns, Raw Cotton-Shankar-6 and Organic
Cotton Garments, etc. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
About
1400 |
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Bankers : |
Not
Available |
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Auditors : |
Mahendra
N Shah and Company Chartered
Accountants |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity
Shares |
Rs.10/- |
Rs.1000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
8130000 |
Equity
Shares |
Rs. 10/- |
Rs. 81.300 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
81.300 |
81.300 |
81.300 |
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2] Reserves & Surplus |
348.700 |
319.600 |
316.800 |
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NETWORTH |
430.000 |
400.900 |
398.100 |
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LOAN FUNDS |
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1] Secured Loans |
504.300 |
427.400 |
552.200 |
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2] Unsecured Loans |
4.000 |
4.000 |
4.000 |
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TOTAL BORROWING |
508.300 |
431.400 |
556.200 |
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TOTAL |
938.300 |
832.300 |
954.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
603.100 |
646.500 |
674.400 |
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Capital work-in-progress |
1.100 |
2.600 |
10.500 |
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INVESTMENT |
29.300 |
29.300 |
29.300 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
397.200
|
259.900 |
434.200 |
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Sundry Debtors |
95.800
|
63.400 |
47.200 |
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Cash & Bank Balances |
14.200
|
11.700 |
19.400 |
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Loans & Advances |
45.000
|
30.100 |
28.500 |
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Total Current Assets |
552.200
|
365.100 |
529.300 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
222.100
|
186.200 |
267.400 |
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Provisions |
25.300
|
25.000 |
21.900 |
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Total Current Liabilities |
247.400
|
211.200 |
289.300 |
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Net Current Assets |
304.800
|
153.900 |
240.000 |
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TOTAL |
938.300 |
832.300 |
954.300 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
1182.700 |
1048.700 |
1286.900 |
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Profit/(Loss)
Before Tax |
62.200 |
29.700 |
60.000 |
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Provision
for Taxation |
23.600 |
10.300 |
11.500 |
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Profit/(Loss)
After Tax |
38.600 |
19.400 |
48.500 |
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Total
Expenditure |
1120.500 |
1019.000 |
1226.900 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st Quarter |
2nd Quarter |
3rd
Quarter |
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Sales Turnover |
313.600 |
330.500 |
309.000 |
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Other Income |
0.800 |
3.000 |
5.700 |
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Total Income |
314.400 |
333.500 |
314.700 |
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Total Expenditure |
275.500 |
291.600 |
270.600 |
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Operating Profit |
38.900 |
41.900 |
44.100 |
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Interest |
11.800 |
6.600 |
8.300 |
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Gross Profit |
27.100 |
35.300 |
35.800 |
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Depreciation |
14.700 |
12.700 |
13.000 |
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Tax |
2.700 |
5.300 |
7.000 |
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Reported PAT |
9.300 |
16.900 |
15.500 |
200606 Quarter 1 - Expenditure Includes (Increase)
/ Decrease in Stock in Trade Rs (1.20) million Consumption of Raw Materials Rs
161.80 million Staff Cost Rs 24.20 million Power & Fuel Rs 50.40 million
Other Expenditure Rs 40.30 million Tax Includes Provision for Tax Rs 2.70
million Deferred Tax Rs 0.40 million EPS is Basic and 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 have been reviewed by the Audit
Committee and approved by the Board of Directors at the meeting held on July
31, 2006. 2. The Company manufactures and sells single product i.e. cotton yarn
and therefore Accounting Standard on Segment Reporting is not applicable. 3.
The furnace oil prices continued to be on increasing trend which has affected
the profitability. 4. The Limited Review of the financial results for the
quarter ended June 30, 2006 has been carried out by the Statutory Auditors.
200612 Quarter 3 - Expenditure Includes (Increase)
/ Decrease in Stock in Trade Rs (13.10) million Consumption of Raw Materials Rs
167.60 million Staff Cost Rs 29.00 million Power & Fuel Rs 45.20 million
Other Expenditure Rs 41.90 million Tax Includes Provision for Tax Rs 7.00 million
Deferred Tax Rs 0.30 million EPS is Basic Status of Investor Complaints for the
quarter ended December 31, 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 have been reviewed by the Audit Committee and approved by the
Board of Directors at the meeting held on January 29, 2007. 2. The Company
manufactures and sells single product i.e. cotton yarn and therefore Accounting
Standard on Segment Reporting is not applicable. 3. The Company's new project
i.e. setting up of two windmills of 800 KW and 600 KW each in Gujarat, is at
completion stage and the electricity generation at the said windmills is likely
to commence by middle of February 2007. 4. The Limited Review of the financial
results for the quarter ended December 31, 2006 has been carried out by the
Statutory Auditors.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.13 |
1.26 |
1.50 |
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Long Term Debt Equity Ratio |
0.73 |
0.84 |
0.96 |
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Current Ratio |
1.16 |
1.08 |
1.01 |
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TURNOVER RATIOS |
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Fixed Assets |
0.93 |
0.88 |
1.04 |
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Inventory |
3.52 |
3.09 |
3.18 |
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Debtors |
14.52 |
19.39 |
30.79 |
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Interest Cover Ratio |
2.89 |
1.76 |
2.21 |
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Operating Profit Margin (%) |
13.48 |
11.19 |
12.84 |
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Profit Before Interest and Tax Margin (%) |
8.23 |
6.40 |
8.78 |
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Cash Profit Margin (%) |
8.59 |
6.60 |
7.95 |
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Adjusted Net Profit Margin (%) |
3.34 |
1.81 |
3.89 |
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Return on Capital Employed (%) |
10.75 |
7.74 |
12.07 |
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Return on Net
Worth (%) |
9.30 |
4.95 |
13.35 |
STOCK PRICES
|
Face
Value |
Rs.
10/- |
|
High |
Rs.
27.55/- |
|
Low |
Rs.
26.60/- |
LOCAL AGENCY
FURTHER INFORMATION
Biodata
PBM Polytex (PPL) was incorporated in Nov.'19 as Petlad
Bulakhidas Mills Company. It was taken over by the House of Patodias in 1978.
Later, its name was changed to PBM Polytex in October 1986. It is chaired by K
K Patodia. Other group companies are Patodia Syntex, Rajen & Company,
Brijlal Purushottamdas, etc.
The company came out
with a Rs 12.600 millions public issue in March0990 to meet the long-term
working capital needs and normal capital expenditure. The company manufactures
all kinds of processing yarn, industrial Yarn, hosiery yarn ,etc.
PPL exports to the US, the UK, Germany, Belgium, Japan, and other countries. To
diversify its activities, the company has set up a texturising and filament
yarn division in Silvassa. PPL is the co-promoter of Eurotex Industries and
Exports -- the first 100% export-oriented spinning unit in the private sector.
The company has been winning trophies for exemplary export performances for the
last six years from TEXPROCIL.
During the year 1999-2000, the total export performance reached new heights of
Rs.722.600 millions i.e 31% higher than the previous year.
To improve the quality of yarn the company is planning to go in for
Modernisation of its Power Plant in Petlad Unit. This will minimise production
loss and also the quality of yarn will improve. The Petlad unit has got the ISO
9002 Certification for quality standards.
Operational Overview
The company has been able to maintain its profitability
during the year despite steep rise in furnace oil prices, resulting in
increased power and fuel cost. The production at Borgaon unit of the company,
which was badly affected during the latter half of the previous year on account
of illegal strike by the workers, had commenced in the month of April 2005 by
sincere efforts of the management.
Management is very vigilant and conscious in upgradation of its plant and
machinery of latest technology so as to meet with the needs of the customers.
During the year also the company has installed machineries for improving
productivity and quality of the product.
The increase in fuel prices by about 60% over the previous year alone has
eroded the profits of Petlad unit of the company substantially. The management
is worried about constantly rising crude oil prices world over and in India.
However, costs at other levels were kept in control and all possible efforts
were exercised by the management in this regard, which has helped the company
in achieving improved financial results.
Because of favourable market situations, the company has concentrated more on
local market and reduced its dependence on exports market during the year under
review.
Profile
PBM Polytex, a part of The Patodia Group of
Industries, was founded by Late Shri B.L. Patodia in the year 1934. With
commitment and dedication, they have grown tremendously and have become a
frontline manufacturer, supplier and exporter of Cotton Yarns, Raw
Cotton-Shankar-6 and Organic Cotton Garments all across the globe. The group's
present turnover is in excess of US$ 100 million, and covers almost the
complete portfolio of the activities of textile industry, from raw cotton to
ready to wear fashion garments. They have firm business tie-ups with textile
companies all over the world including Japan, Switzerland, UK, Germany, South
Korea, Italy and USA.
Products
Today, the company is involved in a range of activities within the cotton textile industry. The range of services and products include the following:
v
Raw cotton (exported to China, Bangladesh, and
Pakistan among other countries)
v
Silk made-ups and yarn (exported all around the
world)
v
Organic cotton garments
v
Cotton yarn (4 mills with over 150,000 spindle
capacity - exports worldwide)
v Organic cotton
kids and infant garments like kids pyjamas, polo pique T-shirts and round neck
T-shirts.
Awards
and Citations
They have received several national awards as a token of appreciation for their commitment towards quality and excellence, from the Government of India, State Governments, export promotion councils, as well as other reputed state and private bodies. Some of the awards are listed below:
Texprocil
Award: They have been
receiving this award almost every year since 1988 for best national export
performance
Golden House Status: The trading company of the group has been felicitated to “Golden House” status for outstanding and consistent export performance.
Quality
Quality is the most important aspect of each of the products manufactured and exported by us. They closely monitor each stage of the manufacturing process. The quality inspection is done by their team of experienced and proficient technical staff. The comprehensive quality control policy conform to national and international standards keeping us far ahead of competitors.
Infrastructure
They have a sound infrastructural set-up well equipped with all the facilities required for exporting and manufacturing of world class products. They have a proficient team of designers, sales representatives and professionals who have the technical expertise and in-depth knowledge of market requirements. The spacious warehouse, wide distribution system and excellent transport facilities ensure the customers of safe, smooth and prompt delivery of products.
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.44.28 |
|
UK
Pound |
1 |
Rs.86.64 |
|
Euro |
1 |
Rs.58.10 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|