MIRA
INFORM REPORT
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Report Date : |
27.07.2007 |
IDENTIFICATION DETAILS
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Name : |
PCI PAPERS LIMITED |
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Registered Office : |
Plot D/1, MIDC Industrial Area, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.01.2001 |
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Com. Reg. No.: |
11-130521 |
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CIN No.: [Company
Identification No.] |
U99999MH2001PTC130521 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKP00897B |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of other primary paper materials |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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Maximum Credit Limit : |
USD 140000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by average 30 days |
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Litigation : |
Clear |
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Comments : |
Subject is a listed company having moderate track. Profit margin is under severe pressure. General financial position is moderate. Payments are reported as slow by average 30 days. The company can be considered for small to mediocre business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot D/1, MIDC Industrial Area, |
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Tel. No.: |
91-2551-230382/ 230359 |
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Fax No.: |
91-2551-230411 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Prashant K. Bhattacharya |
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Designation : |
Director |
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Name : |
Mr. Narendra K. Hirawat |
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Designation : |
Director |
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Name : |
Mr. B. D. Save |
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Designation : |
Nominee (IDBI) Director |
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Name : |
Mr. Milind G. Gujarathi |
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Designation : |
Director |
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Name : |
Dr. Smarajit Sen |
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Designation : |
Additional Director |
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Name : |
Ms. Kanak Devi Bagrecha |
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Designation : |
Whole Time Director |
KEY EXECUTIVES
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Name : |
Mr. B. L. Sharma |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of other primary paper materials |
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Products : |
§ Silicon Release Paper § Aerosol Products § Label Stock |
GENERAL INFORMATION
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No. of Employees : |
200 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
C S Sarda and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4,344,175 |
Equity Shares |
Rs. 10/- each |
Rs. 43.442
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
43.400 |
43.400 |
43.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
[7.800] |
[8.800] |
(12.300) |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
35.600 |
34.600 |
31.100 |
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LOAN FUNDS |
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1] Secured Loans |
72.600 |
75.600 |
79.200 |
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2] Unsecured Loans |
2.500 |
2.500 |
6.500 |
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TOTAL BORROWING |
75.100 |
78.100 |
85.700 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
110.700 |
112.700 |
116.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
33.800 |
38.200 |
41.500 |
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Capital work-in-progress |
0.900 |
0.700 |
0.400 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
42.200
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38.400 |
36.900
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Sundry Debtors |
58.400
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62.600 |
59.800
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Cash & Bank Balances |
1.800
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2.700 |
2.400
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
19.700
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19.000 |
16.900
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Total
Current Assets |
122.100
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122.700 |
116.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
45.800
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49.000 |
41.200
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Provisions |
0.300
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0.100 |
0.300
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Total
Current Liabilities |
46.100
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49.100 |
41.500 |
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Net Current Assets |
76.000
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736.00 |
74.500
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MISCELLANEOUS EXPENSES |
0.000 |
0.200 |
0.400 |
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TOTAL |
110.700 |
112.700 |
116.800 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
187.000
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204.100
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190.300
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Other Income |
4.800
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4.000
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05.000
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Stock Adjustments |
3.400
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2.900
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[0.400] |
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Total Income |
195.200 |
211.000 |
194.900 |
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Profit/(Loss) Before Tax |
1.600
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1.400
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1.800
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Provision for Taxation |
0.300
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0.100
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0.200
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Profit/(Loss) After Tax |
1.300
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1.300
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1.600
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Expenditures : |
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Raw Materials |
110.400
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125.800
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113.000
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Excise Duty |
23.700
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21.700
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20.800
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Power & Fuel Cost |
6.900
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7.000
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6.800
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Other Manufacturing Expenses |
11.400
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13.200
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12.700
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Employee Cost |
10.900
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10.100
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9.600
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Selling and Administration
Expenses |
13.200
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13.800
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13.700
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Miscellaneous Expenses |
0.200
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0.500
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0.400
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Interest & Financial Charges
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10.000
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10.700
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9.600
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Depreciation |
6.900
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6.800
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6.500
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Total Expenditure |
193.600 |
209.600 |
193.100 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 |
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Type |
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Full
Year |
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Sales Turnover |
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207.000 |
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Other Income |
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3.300 |
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Total Income |
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210.300 |
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Total Expenditure |
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188.800 |
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Operating Profit |
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21.500 |
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Interest |
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10.000 |
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Gross Profit |
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11.500 |
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Depreciation |
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5.600 |
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Tax |
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0.700 |
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Reported PAT |
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5.200 |
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Dividend (%) |
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0.000 |
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
2.18 |
2.49 |
3.38 |
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Long Term Debt Equity Ratio |
1.04 |
1.49 |
2.34 |
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Current Ratio |
1.40 |
1.52 |
1.70 |
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TURNOVER RATIOS |
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Fixed Assets |
2.00 |
2.25 |
2.18 |
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Inventory |
4.64 |
5.42 |
5.23 |
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Debtors |
3.09 |
3.33 |
3.15 |
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Interest Cover Ratio |
1.16 |
1.15 |
1.19 |
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Operating Profit Margin (%) |
9.89 |
9.36 |
9.41 |
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Profit Before Interest and Tax Margin (%) |
6.20 |
6.03 |
5.99 |
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Cash Profit Margin (%) |
4.39 |
4.07 |
4.26 |
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Adjusted Net Profit Margin (%) |
0.70 |
0.73 |
0.84 |
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Return on Capital Employed (%) |
8.62 |
8.81 |
7.62 |
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Return on Net Worth (%) |
2.24 |
2.59 |
2.76 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.23.00/- |
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Low |
Rs.23.00/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The Kolkata (
The company came out with a public issue of 13,87,000 equity shares of Rs 10
each for cash at a premium of Rs 5 per share aggregating Rs 20.800 million in
Jan'96 for the expansion cum diversification plan. It plans to expand the
manufacturing capacity of Silicone Release Paper (SRP) from 285 tpa to 1005 tpa
and proposes to diversify into manufacture of 1440 tpa of poly laminated SRP,
27 lakh Sq. mtr. p.a of Label Stock, 24 tpa of Pressure Sensitive Adhesives
(PSA) and Rs. 6.000 million nos. of Multi Stick Pads (MSP).
It has entered into a technical transfer agreement with Bhaba Atomic Research
Centre (BARC) for the manufacture of Pressure Sensitive Adhesives (PSA). Company
achieve Gross Revenue to Rs.78.911 million in the year 1997-98 as compared to
64.760 million in the previous year, registering growth of 22%.
REVIEW
OF OPERATIONS:
During the year under review, the company has recorded a turnover of Rs.187.039
Million as against Rs.204.139 Millions in the previous year, represented a
decline of 8.38% over the last year.
The Company continued to face increasing prices of main Raw Materials this year
also. During the year the company took various measures for reducing the cost
of production particularly by controlling wastages and overhead expenses etc.
The company's sales and revenues were not commensurate with the projections due
to massive increase in the price of the Petroleum Products in the International
as welt as in domestic markets, which has directly affected the price of the
basic inputs (e.g. L.D.P.E, Adhesive, other Chemicals) used by the company.
However, the company increased the selling price of it's products but due to
local market competition, it could not transferred the entire burden of such
increase of price on the customers.
Overall
Review:
The Company's operations are broadly classified into 2 (two) business segments
i.e. Paper and Chemicals. During the year under review it has recorded a
turnover of Rs.187.039 Millions against projected turnover of Rs.227.026
Millions. Despite intense competition with unorganized sector, dumping of stock
lot & off-cuts from oversees manufacturers; lack of growth in demand and
increase in prices of raw material & consumables, the company has posted a
marginal profit of Rs.1.311 Millions as against projected profit of Rs.2.661
Millions. The sales were remained below the projections because of shortage of
funds as the revenues could not generated sufficient surplus to match with cash
flows. The company has however not defaulted the payments of any dues to
financial institution / Bank.
Finance:
Since, last couple of years, the company has been facing the burden of high interest
cost, to overcome this problem, the company had approached to its Term Lending
Institution for re-structuring the Term Liability and reduction of interest
rate. The management is thankful to the financial institution, as the same has
been granted. The Company is regular on making payments to IDBI as per the
restructuring package.
On the same line, the company has approached its working capital banker 'State
Bank Of India' to grant relief and concession besides releasing of adequate and
additional necessary working capital with a view to achieve the projected
turnover & profitability.
As a part of financial Re-Structuring, the Company has approached to State Bank
of
Management has been facing hardship due to substantial amount have been blocked
in receivable.
Keeping in the view of the continuous increasing in the prices of the main Raw
Material & in adequate working capital of the company it is very difficult
to sustain in the long run without any support from the Financial Institution
or from banker.
Further more, delay in granting additional working capital requirement will
hamper the long Term Viability of the project.
Internal Control Systems and their
adequacy:
The company has established an internal control system which provides
reasonable assurance with regards to maintaining proper financial and cost
accounting record, economy in operation and efficiency, safe guarding the
assets and facilitating reliability of financial and operational information.
An audit Committee of Board of Directors with a majority of independent regularly
reviewing the audit plans, significant audit findings, adequacy of internal
control as well as compliance with accounting standards.
As per Web Details
Subject is a well known group set up in joint venture with
the Industrial Development Bank of
A full fledge set up for R & D and fully equipped in-house laboratory
ensures and
Release Papers of Various GSM in Reel & Sheet form.
* Self Adhesive Label
Stock in Reel & Sheet form in wide range for Example.
• Chromo Art Label Stock.
• Mirror Coat Label Stock.
• Maplitho Label Stock.
• Fluorescent & Coloured paper
Labelstock.
• Foil Labelstock.
• Fabric ( Velvet ).
• Films ( PVC ).
* Adhesive used for
various applications.
• Water Based Acrylic Adhesive.
• Hot Melt Adhesive.
• Removable Adhesive.
• Solvent based Adhesive.
• Rubber Based Adhesive.
MOTTO
• Maximised range
of product.
• Consistent Quality by our Quality Control Department.
• Continuous Development from R & D.
• Application Product to the Customer with their entire satisfaction.
• Very competitive price to the Customer.
• Devotion towards prompt service & fulfilling the commitment.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.48 |
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|
1 |
Rs.82.59 |
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Euro |
1 |
Rs.55.55 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
4 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
3 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
4 |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
35 |
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 |
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