MIRA
INFORM REPORT
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Report Date : |
14.07.2007 |
IDENTIFICATION DETAILS
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Name : |
POLAR INDUSTRIES LIMITED |
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Registered Office : |
113, |
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Country : |
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Financials (as on) : |
30.09.2006 |
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Date of Incorporation : |
19.06.1982 |
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Com. Reg. No.: |
21-34996 |
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CIN No.: [Company
Identification No.] |
L99999WB1982PLC034996 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALP07493D |
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PAN No.: [Permanent
Account No.] |
AABCP7240D |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
Manufacturers of Electronic Instruments, T.V., Fans, C.D. Player and Tape. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
-- |
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Status : |
Sick unit |
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Payment Behaviour : |
Slow |
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Litigation : |
-- |
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Comments : |
Subject is a sick unit and has been referred to BIFR. Company’s
profitability is under severe pressure. It has huge accumulated losses.
Payments are reported as slow and delayed. The company can be considered for any business dealings on fully safe
and secured trade terms and conditions, only. |
LOCATIONS
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Registered Office/ Marketing Division : |
113, |
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Tel. No.: |
91-33-3028 1829/3528 |
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Fax No.: |
91-33-2245 4923/2249 4198 |
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E-Mail : |
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Website : |
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Corporate Office/ Export Division : |
A-105, Sector 5, Noida - 201 301 |
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Tel. No.: |
91-0120-3914751/52/53/54 |
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Fax No.: |
91-0120-2420451 |
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E-Mail : |
Alok Agrawal: edpolar@pil.polarinc.com/alok@pil.polarinc.com |
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Factory 1 : |
Noida Ceiling Fan Division - A-2, Sector 5, Noida
- 201 301 |
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Factory 2 : |
Kolkata Sumach Division - 58/4/2A |
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Factory 3 : |
PFI Division - 167, Kolkata - 700 060 |
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Factory 4 : |
Roorkee Plot No. 9, Ram Nagar Industrial Area Roorkee, |
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Service Centers : |
South
Zone Chennai – 2485 3351 / 2371 7127
East
Zone Kolkata – 2225 3480 / 2225 7212 Siliguri – 2643868 Asansol – 220 2537
Guwahati – 252 9260 North
Zone
Jaipur – 2210049
West
Zone Mumbai – 2822 1325/ 2839 8484 Ahmedabad- (02718) 262977
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DIRECTORS
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Name : |
Sri Anil Agarwal |
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Designation : |
Chairman & Managing Director |
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Name : |
Sri Sunll Agarwal |
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Designation : |
Vice Chairman |
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Name : |
Sri Salll Bhandarl |
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Designation : |
Director |
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Name : |
Sri Vikram Prakash |
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Designation : |
Director |
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Name : |
Dr. S. D. Nanda |
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Designation : |
Nominee Director (IIBI) |
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Name : |
Sri A. K. Sharma |
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Designation : |
Nominee Director (IFCI) |
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Name : |
Sri S. S. Dabas |
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Designation : |
Nominee Director (PNB) |
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Name : |
Sri K. P. Bhatlacharya |
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Designation : |
Director – Operations |
KEY EXECUTIVES
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Name : |
Sri Vishwanath G. Malagi |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter’s Group |
5318470 |
39.01 |
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Financial Institution/ Banks/ Mutual Funds |
4723072 |
34.64 |
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NRIs |
12240 |
0.09 |
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Public/ Private Bodies Corporate |
742121 |
5.44 |
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Individual Public |
2839010 |
20.82 |
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Total |
13634913 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Electronic Instruments, T.V., Fans, C.D. Player and
Tape. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
v
Punjab National Bank, Large Corporate
Branch, v
Allahabad Bank, Industrial
Finance Branch v
Parliament Street, v
Union Bank of v
Bank of Maharastra, |
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Facilities : |
Secured Loans
(As on 30.09.2006): (Rs.
In millions)
Notes : Debentures, Rupee Term Loans , Funded Interest Term Loans & Bridge
Loan are to be secured by first pari-passu charge on all fixed assess and second
charge on current assets of the Company. The Bank Borrowings for Working
Capital are to be secured by hypothecation of current assets and second
charge on fixed assets. Zero % Debentures of Rs.3.747 millions (including due for redemption
Rs. 37.470 millions) are redeemable at par in three installments commencing
from 2003-04 to 2005-06. 4% Debentures of Rs. 30.000 millions (including due
for redemption Rs.10.506 millions) are redeemable at par in twelve quarterly
installments commencing from 2005-06 to 2007-08. 7 % Debentures of Rs.3.540
millions (including due for redemption Rs.0.761 millions) are redeemable at
par in sixteen quarterly installments commencing from April, 2005 to January,
2009, 8% Debentures of Rs.10.000 millions (including due for redemption
Rs.6.666 millions) are redeemable at par in three installments commencing
2004-05 to 2006-07.11 % Debentures of Rs.60.606 millions (including due for
redemption Rs.1.818 millions) are redeemable at par in 32 quarterly
installments commencing from April, 2005 to January, 2013. Car Loans from Banks are secured by hypothecation of specific
vehicles. Term Loans and Bank borrowings are also guaranteed by Chairman &
Managing Director and one of the Directors of the Company, Also these are
further secured by shares pledged by third parties as Collateral Security. Bank borrowings for working capital includes Rs. 96.702 millions being
devolvement of Letter of Credit issued by the Bank. Unsecured Loans
:
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Banking
Relations : |
-- |
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Associates/Subsidiaries : |
v Sheffield Appliances Limited v Polar Pharma India Limited v S. A. Engineering Works v Vinsa Electricals Limited v V. Enterprises v Versatile Wires Limited v Kumar Traders (Upto 30.11.2005) v Sunil Fan Industries.(Upto 31.01.2006) Co-promoters & Associates v Polar Marmo Agglomerates Limited v Heynen India Limited v
Polar Forgings & Tools Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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22750000 |
Equity Shares |
Rs.10/- each |
Rs.227.500 millions |
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25000 |
14% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.2.500 millions |
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Total |
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Rs.230.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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13634913 |
Equity Shares |
Rs.10/- each |
Rs.136.349
millions |
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25000 |
14% Redeemable Preference Shares |
Rs.100/-
each |
Rs.2.500
millions |
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Total |
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Rs.138.849 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.09.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
138.849 |
138.849 |
113.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
312.100 |
316.007 |
99.300 |
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4] Zero Coupon, Convertible Warrant Money |
80.247 |
0.000 |
0.000 |
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5] (Accumulated Losses) |
(1179.636) |
(336.638) |
0.000 |
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NETWORTH |
(648.440) |
118.218 |
213.100 |
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LOAN FUNDS |
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1] Secured Loans |
865.711 |
761.256 |
753.800 |
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2] Unsecured Loans |
103.733 |
33.521 |
37.200 |
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TOTAL BORROWING |
969.444 |
794.777 |
791.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
321.004 |
912.995 |
1004.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
129.616 |
102.795 |
184.900 |
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Capital work-in-progress |
0.893 |
173.528 |
167.200 |
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Project Pre-operative Expenses |
1.753 |
0.000 |
0.000 |
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INVESTMENT |
20.636 |
28.095 |
26.500 |
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DEFERREX TAX ASSETS |
0.000 |
56.001 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
143.036
|
153.568 |
124.600 |
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Sundry Debtors |
395.442
|
670.013 |
627.000 |
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Cash & Bank Balances |
7.825
|
28.796 |
24.900 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
76.632
|
214.267 |
347.100 |
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Total
Current Assets |
622.935
|
1066.644 |
1123.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
448.002
|
507.519 |
506.500 |
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Provisions |
15.180
|
12.189 |
0.000 |
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Total
Current Liabilities |
463.182
|
519.708 |
506.500 |
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Net Current Assets |
159.753
|
546.936 |
617.100 |
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MISCELLANEOUS EXPENSES |
8.353 |
5.640 |
8.400 |
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TOTAL |
321.004 |
912.995 |
1004.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.09.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1447.738 |
964.266 |
921.700 |
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Other Income |
66.937 |
67.602 |
136.700 |
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Total Income |
1514.675 |
1031.868 |
1058.400 |
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Profit/(Loss) Before Tax |
(787.151) |
(78.359) |
0.900 |
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Provision for Taxation |
58.230 |
15.068 |
19.200 |
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Profit/(Loss) After Tax |
(845.381) |
(93.427) |
(18.300) |
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Total Earnings |
22.692 |
18.694 |
NA |
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Imports : |
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Raw Materials |
2.916 |
6.059 |
NA |
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Others |
69.411 |
25.794 |
NA |
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Total Imports |
72.327 |
31.853 |
NA |
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Expenditures : |
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Opening Stock |
121.112 |
85.188 |
NA |
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Manufacturing Expenses |
NA |
NA |
88.800 |
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Administrative Expenses |
NA |
NA |
80.300 |
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Raw Material Consumed |
1035.777 |
660.250 |
501.600 |
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Miscellaneous Expenses |
NA |
NA |
134.800 |
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Salaries, Wages, Bonus, etc. |
NA |
NA |
63.700 |
|
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Interest |
NA |
NA |
70.000 |
|
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Power & Fuel |
NA |
NA |
10.000 |
|
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Depreciation & Amortization |
NA |
NA |
13.700 |
|
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Other Expenditure |
406.654 |
279.039 |
94.600 |
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Total Expenditure |
1563.544 |
1024.478 |
1057.500 |
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SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 (Full year) |
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Sales
Turnover |
|
|
449.500 |
|
Other
Income |
|
|
3.700 |
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Total
Income |
|
|
453.200 |
|
Total
Expenditure |
|
|
634.800 |
|
Operating
Profit |
|
|
(181.600) |
|
Interest |
|
|
49.900 |
|
Gross
Profit |
|
|
(231.500) |
|
Depreciation |
|
|
3.200 |
|
Tax |
|
|
0.600 |
|
Reported
PAT |
|
|
(235.300) |
|
Dividend
(%) |
|
|
0.000 |
KEY RATIOS
|
PARTICULARS |
30.09.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.00 |
5.92 |
4.21 |
|
Long
Term Debt-Equity Ratio |
0.00 |
4.62 |
3.33 |
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Current
Ratio |
1.15 |
1.62 |
1.63 |
|
TURNOVER
RATIOS |
|
|
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|
Fixed
Assets |
5.31 |
3.95 |
2.96 |
|
Inventory |
6.49 |
6.92 |
6.64 |
|
Debtors |
1.81 |
1.48 |
1.52 |
|
Interest
Cover Ratio |
(0.51) |
(0.06) |
0.31 |
|
Operating
Profit Margin(%) |
(3.77) |
0.47 |
3.86 |
|
Profit
Before Interest And Tax Margin(%) |
(4.48) |
(0.46) |
2.38 |
|
Cash
Profit Margin(%) |
(19.55) |
(8.78) |
(3.73) |
|
Adjusted
Net Profit Margin(%) |
(20.26) |
(9.71) |
(5.22) |
|
Return
On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
|
Return
On Net Worth(%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.7.62 |
|
Low |
Rs.7.31 |
LOCAL AGENCY FURTHER INFORMATION
Established in 1982 and promoted by Anil Agarwal, Subject, the flagship of
the Polar group, is primarily a ceiling-fan producer, but has re-fashioned
itself into an electro-mechanical syndicate by diversifying into synergical
products like fractional horse power (FHP) motors and water/chemical lifting
pumps. PIL which has four divisions - fans (cap. ; 1.500 million), FHP motors
(cap. : 0.600 million), pumps (cap. : 0.36 million) and electrical stampings
(cap. : 2940 tpa) - has also added domestic appliances to its fold. It launched
a wide range of domestic appliances under the
The takeover of Sumach Electricals by the company stregthened its ceiling fan
segment. The introduction of hi-speed presses and de-carbonisation and
re-crystallisation plants in the lamination division increased Subject's
installed capacity. The company has expanded its motor divisions capacity to
0.600 million pa.
The fans are being exported to countries like the
The company has achieved a major milestone by becoming an ISO 9002 in all the
product lines. It has expanded its product range through introducing new models
like `Windchill',`
REFERENCE TO BIFR
Since the accumulated losses of the Company, as on 30th September, 2006,
has exceeded the entire Net Worth of the Company and the Board having formed
the opinion that the Company has become a Sick Industrial Company within the
meaning of Sick Industrial Companies (Special Provisions) Act, 1985, a
reference under Section 15 of the said Act shall be made to BIFR on or before
February 28, 2007.
OPERATIONS
The Company has achieved a turnover of Rs. 1447.738 millions (Rs.
965.158 millions on annualized basis) during the period ended 30th September,
2006 as against turnover of Rs. 964.266 millions during previous year, which is
at the same level. While the turnover in electrical fan segment has gone down,
the Company could maintain the same turnover due to new business segments i.e.
Home Appliances and Compact Florescent Lamp (CFL). EBITDA margins have
decreased from Rs. 6.252 millions in the previous year to Rs. (54.611) millions
[Rs. (36.407) millions on annualized basis] during the period ended 30th
September, 2006.
The Company got the following setbacks, which has eroded the working
capital and resulted into lower turnover, higher cost and consequently lower
EBITDA margins.
• Non-release of working capital limits as per the sanctioned CDR
Scheme. The working capital account with the consortium banks except UBI, where
there is a small limit of Rs. 20.500 millions, have become inoperative.
• Recovery/Repayment of Term Loan out of the working capital funds as
there were not enough generation due to non-release of working capital.
• Payment against allotment of land in excise free zone, State
Industrial Development Corporation of Uttaranchal Limited. (SIDCL), out of the
promoter contribution under CDR/ working capital which was otherwise to be paid
out of the sanctioned Bridge Loan.
• Delay in the sale of surplus assets as per sanctioned CDR scheme due
to inter-lender issues.
The segment wise performance is as under: -
Electrical Fans
The Company has achieved a turnover of Rs.1117.098 millions (Rs.744.732
millions on annualized basis) during the period ended 30th September, 2006 as
against turnover of Rs.866.460 millions during previous year. EBITDA margins
have substantially reduced due to the following factors.
• The fan sales have fallen by 19.60% in quantitative terms. In value
terms the fans sale have decreased by Rs. 121.728 millions (14.05%)
• Raw Material cost has adversely effected in two ways (i) Unprecedented
hike in the prices of the core raw materials like Copper, Steel & Aluminum
around Rs.30/- per Fan. The Company could not pass on the hike to the customers
immediately since the sale prices are governed by the market forces, (ii) The
Company could not avail/
negotiate the best economical prices from the suppliers due to stretched
credit period, which has emerged due to shortage of working capital funds.
• The lower contribution on account of lower volumes and higher raw
material cost has resulted into non-recovery of the overheads and ultimately
lower EBITDA margins.
The Company continues to produce fans in the excise free zones at
Roorkee (Uttranchal) resulting in savings in excise duty.
Appliances
The Company had started the business of Home Appliances two years back.
The period ended 30th September, 2006 was the first full year of operation.
Though the Company has created ample space in the market, the turnover under
this segment was Rs.1101.73 millions only, due to want of adequate working
capital.
The purchase cost is higher by 4%-5% due to 3rd party L/C arrangements. The
lower turnover, higher cost and under recovery of the overheads has resulted
into lower EBITDA margins.
The Company has recently started two new products viz. Geyser, OTG so as
to complete the full range of Home Appliances.
Compact Florescent Lamps (CFL)
The Directors are pleased to inform that as decided in last year, the
Company has made foray into the Lighting (CFL) segment in the current year in
order to leverage the potential of the Polar brand. The growth potential in
this segment is immense subject to availability of the adequate working capital
funds.
The Company has achieved turnover of Rs.132.245 millions during the
period ended 30th September, 2006, first year of operation. However,
the operating margins were under pressure due to the following factors:
a) The purchase cost is higher by 4%-5% due to 3rd party L/C
arrangements.
b) There was an abnormal process loss of Rs. 3.000 millions borne by the
company, incurred during assembly/manufacturing for upgrading the quality of
finished goods and accordingly acceptability of input material. However', the
process loss has now been standardized based on the industry norms and past
performance.
Exceptional Items
Despite major losses, the management has taken a decision to write off
some of the nonrealizable assets, which have impacted the EAT.
1. Provision of Rs.278.483 millions on Polar Marmo Agglomerates Limited
(PMAL) In earlier years the company has discharged the dues of Polar Marmo
Agglomerates Limited (PMAL) to Financial Institutions and Banks as one time
settlement in terms of Tripartite Agreement. The Company has also entered into
an 'Agreement to Sell' for Purchase of the Assets of PMAL at a consideration of
Rs.157.337 millions and accordingly the payment has been considered as Capital
Advance. Besides this Rs.152.299 millions is due from PMAL on account of loan,
advances, interest and claims receivable. In addition, an amount of Rs. 8.847
millions has been given/ spent towards maintenance of above assets and included
in capital work in progress.
In view of winding up order received from BIFR, the management is of the
view that the recovery/adjustment of the above loans, receivables, advances and
capital work in progress is doubtful. Thus the Company has made the Provision
for Rs.278.483 millions net of Rs.40.000 millions being the estimated
realizable value of the assets of PMAL.
Provision for Doubtful debt
Rs. 663.460 millions Is due from one of the major trade debtor as on
30th September, 2006. In view of their poor financial position and uncertainty
on the future profitability, as an abundant precaution the Company has decided
to provide Rs. 320.000 millions due from them, as doubtful.
Deferred Tax Reversal
The Company has decided to reverse the deferred tax assets of Rs.56.001
millions due to substantial un-absorbed depreciation and brought forward
losses.
EXPORTS
The Company has registered an export sale of Rs 28.587 millions, which
is higher by 17% in value terms as compared to the year 2004-05.
The Company has taken some steps to expand its export market reach,
participating in the overseas fairs/events. The Company is at present operating
in African market, Middle East and SAARC Countries and attempting to enter
Latin America and
The Company is at present having a moderate focus on exports due to
lower contribution,
INDUSTRY
The industry continues to grow at 25% during the period ended 30th
September, 2006 and is expected to continue due to the various key drivers such
as growth in the housing sector, urbanization and rural prosperity, conversions
from un-organized sector, huge replacement market and shift in consumer
preference from low priced non-branded products to branded value for money and
premium products.
FUTURE OUTLOOK
The Indian Economy remained buoyant with continuous emphasis on
infrastructure activities. The Government has been continuing its thrust on the
development of infrastructure, which will lead to derived demand for the fan
products. The focus of the Company would be on:
• Increase in the volume in all the three segments viz. Electrical Fans,
Home Appliances and Lighting (CFL).
• Consolidation of manufacturing units for better control and reduction
of the overheads.
• Restructuring of organizational structure to make it flat, more
efficient and cost effective.
• Increased production at the unit at Uttranchal for higher excise duty
benefits.
• Settlement of debt liability with Bank & Fl's through OTS. The
proposal is at on advanced stage and the sanction is expected shortly.
MANAGEMENT DISCUSSIONS & ANALYSIS
Consolidation of Manufacturing Units
The Company is at present operating from four manufacturing units-two at
Kolkata one each at Noida and Roorkee, Uttaranchal. The Company has decided to
consolidate the four units into two units, one at Kolkata and the other at
Hardwar, Uttaranchal (excise free zone) under a strategic decision to maximize
the production at excise free zone leading to, saving in overheads and improvement
in the efficiency. The Company has taken all the effective steps and listed out
of the formalities involved. However, complete closure could not be achieved
due to lack of adequate funds. It shall be done, once the funds are in place.
As a long-term strategy, the Company had purchased Industrial land in
Increase In the Raw Material Cost
Raw Material cost have been adversely effected in two ways (i)
unprecedented hike in the prices of the core raw materials like Copper,-Steel
& Aluminum, which the Company could not pass to the customers as the sale
prices are governed by the market forces and (ii) the Company could not
avail/negotiate the best economical prices from the suppliers due to stretched
credit period, which has emerged due to shortage of working capital funds.
Part of the increase in the raw material cost has been offset by
operations at Uttranchal unit, being excise-exempted zone. The Company has
partly passed on hike during the current year and is planning to pass on
further in the coming season, the impact of which shall be felt in the current
year i.e. 2006-07.
One Time Settlement Proposal
The Company has already submitted One Time Settlement (OTS) Proposal for
settlement of dues with Banks and Financial Institutions. The OTS proposal is
now at an advanced stage. At the monitoring Committee Meeting held on 13th
October, 2006 the terms of OTS were finalized. PNB, one of the major lender and
monitoring agency under CDR is now in the process of obtaining final approval
of its higher authorities. Thereafter the same would be taken to CDR forum. The
Company is expecting the final approval from CDR shortly.
New Business Segments
The Company has entered the Home Appliances Business about 2 years ago
and CFL & Luminaries business in the last year to leverage the Polar Brand
and the existing distribution network. The market size of the Home Appliances
is estimated around Rs.8500 Millions with a growth rate of around 10%-15% p.a.
The market size of the CFL & Luminaries is Rs.34000 Millions with a growth
rate of over 20% p.a. The Company's business in these sectors are not picking
up due to shortage of working capital funds. However, with the induction of
funds to meet the OTS and working capital requirement, the Company is hopeful
of a remarkable growth with good margins in the near future.
Induction of funds through distressed Funding
The Company has hired a renowned Financial Consultant, Meghraj SP,
Mumbai as its financial consultant to arrange for the funds for settlement of
its debts, completion of the Uttaranchal Project and to meet the working
capital requirement.
The Company has received interim funding in the month of June, 2006 from
Eight Capital Masters Funds Limited, through Meghraj SP to meet the working
capital requirement against security of 100% holding of Vinsa Electrical Pvt.
Limited.
(VEPLj, brand holding Company. The interim funding has given some
respite in the difficult situation.
Opportunities & Threats
Opportunities
• The demand for the electrical goods is growing in the country.
• The demand for fan industry is dependent on the growth of the housing
sector/ construction activity being at a peak is giving the required boost to
these products.
•
Rural electrification being taken-up by the Government at a rapid pace,
the demand for Company's products are bound to rise in the near future.
•
• The power sector reforms in the country shall boost the CFL segment.
• Polar brand is well known and hence creating awareness for sub-brands
of each product segment will not entail much, time, effort and cost.
Threats
The industry Is expected to face the following threats:
• Unorganized sector vs. branded products: The biggest menace
in the fan industry is not a threat from overseas but rather the unorganized
sector.
At times it has been found that duplicate fans are being manufactured in
unorganized sector. This has affected the branded/organized sector products in
two ways, firstly the duplicate products harm the brand image and the market
share and secondly, the lower price, often drive the customer to buy un-branded
products, though later they repent due to bad quality. To counter the menace of
spurious products, the Company has introduced branded low priced fans in the
market.
• The most challenging and uphill task before the Company is to
restructure its operations and finances with the co-operation of its
bankers/FIs and other major stakeholders.
Internal control systems & their adequacy
The accounting and administrative controls established by the Company
are appropriate to the size and nature of the business of the Company.
The Company has established proper internal checks in day today
transactions, The Company has incorporated proper checks and balances in its
accounting procedure and practice, to eliminate frauds.
The Company has established internal audit and concurrent audit
separately, to ensure budgetary controls. Budgets are prepared for each segment
separately on monthly and yearly basis. Actual performance is reviewed on
monthly basis. Norms for consumption have been laid down for each product.
Apart from the above, internal audit is carried out to evaluate the
internal checks established by the Company and to ensure that accounting and
other allied have been maintained properly.
The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets. The fixed
assets of the Company are physically verified by the management at regular
intervals.
Fixed Assets :
v
v
v
Building
v
Plant & Machinery etc.
v
Furniture, Fixture
v
& Office Equipments
v
Vehicles
v
Trademark
Website Details :
For 29 years, subject has been ahead of it's time. Setting Trends and
exploring avenues that others have only followed -- a fact that is evident in
the range of high quality fans that the brand offers.
From functional ceiling fans to those with with the latest designs,
created with cutting-edge technology. Indeed, the past quarter century is
testimonial to subject's one aim -- to make and market and to suit every budget
and every purpose.
There are but two authors of the Polar success story - technological
expertise and an overwhelming attention to detail. Competent to supply an
impressive 1.8 million fans annually, subject today offers the consumer a vast
choice covering 113 designs!
Subject's in-house manufacturing capacity is an unbeatable 1.2 million
fans. These are manufactured at the two well-equipped factories at Noida and
Kolkata under stringent Quality Control and Quality Assurance Systems.
That apart, Subject's dedicated vendors in
Subject has satisfied customers in places as far flung as the
technology-savvy markets of
At polar the emphasis has always been on giving the customer the best
quality at the most reasonable prices.
A 29-year young company, Polar has always been ahead of its time.
Setting trends and exploring avenues that others have only followed.
In this consumer-oriented market, their ambitious sales force has forged ahead,
aided by the excellent infrastructure and a rather wide distribution network.
Their initial success can be attributed to in-house manufacturing of their
principals at well-equipped factories at Noida, Kolkata and
Over time, their principals have partially switched to dedicated vendors in
Since the day of its inception, Polar has lived by a single dictum: The
only way to discover the limits of the possible is to go beyond them into the
impossible. A dictum that has ruled every decision and every strategy that the
company has authored on its way to being the numero uno. Indeed, Polar’s
success story is strewn with instances of surmounting seemingly impossible
obstacles to emerge winners, time and again. Little wonder then, that today
Polar is perceived as an industry leader, innovating new concepts which have
redefined categories, creating trends that others have only been able to ape.
To live up to its rather impressive past and stay ahead of the race in the
years to come, the company will remain true to its winning mantra. After all,
as the adage goes, things are only impossible until they’re not.
Their Philosophy - To win over the consumer
v
To recognize a customer perspective, as the only
stand-point.
v
To inspire the entire organization to move the
goalposts after achieving each milestone.
v
To empower each member of the organization with
knowledge, tools, authority and freedom.
v
To respond to a changing country, with new ideas
and new capabilities.
v
And to not just manage change but to mastermind it.
It is this vision and will that enables them at Polar to consider
impossibilities as a storehouse of infinite possibilities.
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.40.37 |
|
|
1 |
Rs.82.18 |
|
Euro |
1 |
Rs.55.67 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
-- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
-- |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
16 |
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 |
|