MIRA
INFORM REPORT
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Report Date : |
05.06.2007 |
IDENTIFICATION DETAILS
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Name : |
P G FOILS LIMITED |
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Registered Office : |
6, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.05.1985 |
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Com. Reg. No.: |
008050 |
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CIN No.: [Company
Identification No.] |
U27203GJ1985PTC008050 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHP02114A |
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PAN No.: [Permanent
Account No.] |
AAACP9274C |
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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 : |
Manufacturers of Aluminium foil and its laminates Laminated flexible packaging with plastic and Laminated flexible packaging with papers. |
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 1900000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as
experienced and respectable businessmen.
Trade relations are reported as fair.
Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office / Sales Office: |
6, |
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Tel. No.: |
91-79-26587606, 32986262 |
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Mobile No.: |
91-9825181805 |
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Fax No.: |
91-79-26584187 |
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E-Mail : |
pgfoils@sancharnet.in ; pgfoils@ricmail.com pgfoils81@sify.com |
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Head Office / Factory: |
Pipalia Kalan, 306307, District. Pali, Rajasthan |
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Tel. No.: |
91-2937-287151-56 |
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Mobile No.: |
91-9351622111 |
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Fax No.: |
91-2937-287150 |
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E-Mail : |
pgfoils@sancharnet.in ; pgfoils@ricmail.com pgfoils81@sify.com |
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Sales Office 1 : |
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Tel. No.: |
91-22-22813448, 22815612, 39428026 |
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Fax No.: |
91-22-22813502 |
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Mobile No.: |
91-9324810536 |
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E-Mail : |
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Sales Office 2: |
Maloo Estate, 7 Micetich Colony, Madhavaram, Chennai – 600 060, |
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Tel. No.: |
91-44-55145456 |
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Mobile No.: |
91-9383025913 |
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Sales Office 3 : |
3058 / 3063, |
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Tel. No.: |
91-11-23581033, 23581034, 32537032 |
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Fax No.: |
91-11-2358103 |
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Mobile No.: |
91-9350252736, 9868120685 |
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E-Mail : |
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Sales Office 4 : |
No. 34, 10th Main Near |
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Mobile No.: |
91-9341441148 |
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Sales Office 5 : |
House No. 10-5-3/2/3, Masab Tank, |
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Tel. No.: |
91-40-23323576 |
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Fax No.: |
91-40-23323576 |
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Mobile No.: |
91-9394759180, 9849514572 |
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E-Mail : |
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Sales Office 6 : |
Mayur Apartment, Flat No. T-3and 4, 40-41, Mahampura, Raj |
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Mobile No.: |
91-9314434912 |
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Sales Office 7 : |
55, |
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Tel. No.: |
91-33-22359293 |
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Mobile No.: |
91-9830118220 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Pankaj P. Shah |
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Designation : |
Managing Director |
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Name : |
Mr. Ashok P. Shah |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Abhay P. Shah |
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Designation : |
Whole time Director |
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Name : |
Mr. Pooran Raj G. Shah |
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Designation : |
Director |
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Name : |
Mr. S. B. Kabra |
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Designation : |
Director |
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Name : |
Mr. A. S. Puri |
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Designation : |
Director |
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Name : |
Mr. Vimal Dhadda |
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Designation : |
Director |
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Name : |
Mr. Hemant K. Nema |
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Designation : |
Director |
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Name : |
Mr. Assem Khullar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. R. M. Jain |
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Designation : |
Executive Director [Finance] |
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Name : |
Mr. S. B. Srivastava |
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Designation : |
Executive Director [Operations] |
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Name : |
Mr. S. B. Singh |
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Designation : |
General Manager [Marketing] |
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Name : |
Mr. Vishnu Kaushal |
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Designation : |
Company Secretary |
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Name : |
Mr. Gautam Shah |
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Designation : |
General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Category |
No. of Shares |
Percentage of
Holding |
|
Promoters |
2422300 |
34.21 |
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Persons acting in concert |
563605 |
7.96 |
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Mutual Funds and UTI |
1700 |
0.02 |
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Banks, Financial Institutions |
1900 |
0.03 |
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Private Bodies Corporate |
1053351 |
14.91 |
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Public |
2401073 |
33.90 |
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Non-resident Indians |
636071 |
8.97 |
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Total |
7080000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Aluminium foil and its laminates Laminated flexible packaging with plastic and Laminated flexible packaging with papers. |
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Products : |
Item Code No 73.07 39.20 48.71 |
Product
Description Aluminium Foil and its laminates Laminated Flexible Packaging with Plastic Laminated Flexible Packaging with Papers |
PRODUCTION STATUS
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Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
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Aluminium Foil |
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MT |
5000 |
4538.687 |
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Flexible Packaging |
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MT |
NA |
111.374 |
GENERAL INFORMATION
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No. of Employees : |
About 700 |
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Bankers : |
v
IDBI Bank Limited v
ICICI Bank Limited v
State bank of |
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Facilities : |
Particulars Secured Loans As
on 31.03.2006 From Banks i) Loan/Overdraft Rs. 55.640 millions taken from ICICI Bank Limited
Jaipur was secured against lien of FDR ii) Loan/Overdraft Rs. 6.199 taken from State Bank of iii) Loan/Overdraft Rs. 257.592 taken from IDBI Bank Limited Jaipur
was secured against hypothecation of all present and future book debts, money
receivables, stock in trade, work in progress, movable plant and machinery
and against equitable mortgage on the factory land and building of the
company. |
Rs.
in Millions 319.431 |
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Unsecured Loans
As on 31.03.2006 From Others Secured by way of Hypothecation on vehicle (due within a year Rs.
1.194 millions) |
1.890 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/S H M Singhvi and Company Chartered Accountants |
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Address : |
Johari Bazar, Jaipur, |
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Associates/Subsidiaries : |
v
Prem Cables Private Limited v
Miracle Carriers and Trading Company v
Prem Nagar Industrial Estates Private Limited v
MEC International Private Limited |
CAPITAL STRUCTURE
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10.00 each |
Rs. 150.000 millions |
Issued & Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7091600 |
Equity Shares |
Rs.10.00 each |
Rs. 70.916 Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7080000 |
Equity Shares of |
Rs.10.00 each |
Rs. 70.800 millions |
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Add : |
Shares forfeited |
|
Rs. 0.061 million |
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Total |
|
Rs. 70.861
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 |
70.861 |
70.861 |
70.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
418.142 |
401.692 |
395.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
489.003 |
472.553 |
466.000 |
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LOAN FUNDS |
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1] Secured Loans |
319.431 |
151.353 |
185.400 |
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2] Unsecured Loans |
18.890 |
3.0836 |
0.000 |
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TOTAL BORROWING |
338.321 |
154.4366 |
185.400 |
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DEFERRED TAX LIABILITIES |
3.200 |
6.537 |
0.000 |
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TOTAL |
813.524 |
633.527 |
651.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
64.410 |
67.214 |
67.600 |
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Capital work-in-progress |
0.00 |
0.178 |
0.000 |
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INVESTMENT |
120.354 |
89.725 |
71.100 |
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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 |
208.441
|
166.467 |
139.200 |
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Sundry Debtors |
321.983
|
224.626 |
218.600 |
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Cash & Bank Balances |
114.553
|
170.116 |
254.100 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
102.519
|
68.588 |
54.400 |
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Total
Current Assets |
747.496
|
629.797 |
666.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
115.063
|
142.871 |
147.100 |
|
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Provisions |
3.674
|
10.921 |
6.500 |
|
Total
Current Liabilities |
118.737
|
153.792 |
153.600 |
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Net Current Assets |
628.759
|
476.410 |
512.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
813.524 |
633.527 |
651.400 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
1019.274 |
804.195 |
878.800 |
|
|
Other Income |
39.261 |
40.723 |
32.500 |
|
|
Stock Adjustments |
0.000 |
0.000 |
12.900 |
|
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Total Income |
1058.535 |
844.917 |
924.200 |
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|
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Profit/(Loss) Before Tax |
21.851 |
22.073 |
37.600 |
|
|
Provision for Taxation |
4.547 |
6.304 |
11.400 |
|
|
Profit/(Loss) After Tax |
17.304 |
15.769 |
26.200 |
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Export Value |
0.000 |
29.353 |
0.000 |
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Import Value |
0.000 |
214.176 |
0.000 |
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Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
|
|
Manufacturing Expenses |
901.822 |
704.766 |
42.400 |
|
|
Administrative and Other Expenses |
10.611 |
10.199 |
53.200 |
|
|
Selling and Distribution Expenses |
8.937 |
2.207 |
|
|
|
Raw Material Consumed |
0.000 |
0.000 |
595.200 |
|
|
Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
|
|
Excise Duty |
3.561 |
2.800 |
105.900 |
|
|
Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
28.551 |
25.729 |
24.800 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
0.000 |
|
|
Payment to Auditors |
0.000 |
0.000 |
0.000 |
|
|
Interest and Financial Charges |
17.661 |
10.642 |
9.800 |
|
|
Bad debts written off |
4.196 |
9.148 |
|
|
|
Insurance Expenses |
45.000 |
45.200 |
0.000 |
|
|
Provisions |
4.429 |
0.000 |
|
|
|
Power & Fuel |
0.000 |
0.000 |
34.600 |
|
|
Depreciation & Amortization |
12.317 |
11.033 |
9.700 |
|
|
Other Expenditure |
0.000 |
0.000 |
11.000 |
|
Total Expenditure |
1036.684 |
822.844 |
886.600 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
|
31.03.2007 (Full Year) |
|
|
|
|
|
|
|
Sales Turnover |
|
|
|
1007.200 |
|
Other Income |
|
|
|
33.900 |
|
Total Income |
|
|
|
1041.100 |
|
Total Expenditure |
|
|
|
996.300 |
|
Operating Profit |
|
|
|
44.800 |
|
Interest |
|
|
|
24.600 |
|
Gross Profit |
|
|
|
20.200 |
|
Depreciation |
|
|
|
12.300 |
|
Tax |
|
|
|
0.300 |
|
Reported PAT |
|
|
|
7.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
|
0.50
|
0.37 |
0.26 |
|
Long Term Debt-Equity Ratio |
|
0.01
|
0.00 |
0.00 |
|
Current Ratio |
|
1.82
|
1.98 |
2.18 |
|
TURNOVER RATIO |
|
|
|
|
|
Fixed Assets |
|
3.50
|
2.87 |
2.95 |
|
Inventory |
|
6.23
|
6.05 |
8.27 |
|
Debtors |
|
4.27
|
4.17 |
4.37 |
|
Interest Cover Ratio |
|
2.16
|
2.52 |
4.84 |
|
Operating Profit Margin |
(%) |
4.33
|
4.08 |
6.50 |
|
Profit Before Interest and Tax Margin |
(%) |
3.28
|
2.89 |
5.39 |
|
Cash Profit Margin |
(%) |
2.53
|
2.39 |
4.09 |
|
Adjusted Net Profit Margin |
(%) |
1.48
|
1.20 |
2.98 |
|
Return on Capital Employed |
(%) |
5.37
|
4.22 |
8.44 |
|
Return on Net Worth |
(%) |
3.64
|
2.40 |
5.88 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 22.75 |
|
Low |
Rs. 22.75 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
v
a) Building other than
b)
v Plant and
Machinery
a) Unit No. 1
1) Loading Machine
b) Unit No. 2
c) Wind Mill
v Furniture and
Fixture
v Vehicles
v Office and
Computer
v Equipments
OPERATIONS
During the year
the company achieved a Gross turnover of Rs.1167.774 millions as against
Rs.924.132 millions in the previous year which shows a growth of 26.36%for the
year. Profit before tax decreased to Rs.18.450 millions by 10.61 % from
Rs.20.193 millions of previous year. During the year company paid Rs. 45.000
millions to words renewal premium of key man polices on life of Employees
Directors which has been debited to profit & loss account. Profit before
Tax, Provisions & Keyman premium increased by 3.80% from previous year to
Rs. 67.879 millions
The decrease in
profits is mainly due to provisions of doubtful debts & advances to Rs.
4.425 millions and delay
in absorption of
price increase of raw materials by customers. It is expected that prices of
Aluminium Foil Stock and Grannuals will stable in current year. Exports have
significantly decreased from Rs. 44.793 millions to Rs. 29.353 millions mainly
due to input cost increase on account of price increase of Aluminium Foil Stock
& Grannuals in country. Windmill installed at Jaisalmer for captive
consumption generated 924556 units during 01.04.2005 to 31.03.2006. Company
already received shortfall amounting to Rs. 2.039 millions against guaranteed
generation.
DIRECTORS
Shri Ashok P Shah
Joint Managing Director has resigned from the board from 1st September 2005 as
Director & Joint Managing Director. The Board wishes to place on record the
high appreciation of the significant and valuable services rendered by Shri
Ashok P Shah during their tenure as director of the company.
Shri Pooran Raj G
Shah and Shri Assem Khullar, the directors of the company will retire by
rotation at the
Ensuing Annual General
Meeting and being eligible, have offered themselves for reappointment.
Shri Abhay P Shah
Whole Time Director of the company is to be reappointed for a further period of
5 years as a Whole Time Director of the company.
The management of
PG Foils Limited presents the analysis of performance of the company for the
year 2005-2006 and its outlook for the future. The outlook is based on
assessment of the current business environment. It may very due to future
economic and other developments.
Industry Scenario
The year 2005-2006
was reasonable good for the domestic economy and in particulars the
manufacturing sector. Large numbers of industries have performed well and there
is a revival of demand in almost all sectors. The trend is expected to
continue. The demand of Aluminium Foil in domestic market will remain positive
in view of the following.
1. Global
recognition of more and more Indian Pharma companies.
2. Low per capita
consumption of House Foil. Economic growth will translate into increase in consumption.
3. Special
programme of Govt. on Rural Health Awareness & Family Planning.
The present demand
of Aluminium Foil is approximately 5000 MT and the entire demand met from
domestic production. The demand of the Aluminium Foil by 2006 is expected to grow
to about 6000 MT per annum, which can be met by surplus production capacity.
Presently industry has surplus capacity of App. 2000 MT mainly due to entry of
4 new units in last three years.
Operational performance
For PG Foils
Limited 2005-2006 has been a challenging year. The Company has effectively
integrated its Product Mix to maximize the realization. Turnover & Income
has grown by 26, 36% to Rs. 1167.774 millions. In a scenario of rising prices
of raw materials consumables and other overheads, Company continue to maintain
tight controls on material and overheads costs. In spite of use of high cost
imported Aluminium Foil Stock company able to maintain pre tax profit before
provision and keyman premium to Rs.67.879 millions. The company focused on strengthening
its capabilities, while coping with the challenges of cut throat competition,
declining operating margins and increasing customer expectations..
Financial
Performance
Gross turnover for
the year increased to Rs. 116.7.7 millions against Rs. 924.1 millions in last
year.
Export
Entrants in
competition.
Other income
decreased to Rs. 39.261 millions from last year Rs.40.723 millions mainly due
to reduction in interest income. Capital Expenditure during the year Rs.10.375
millions mainly on replacement of machines in some sections Company contributed
a total Rs.148.5 millions to the National Exchequer as Excise Duty
Resources &
Liquidity
Company continues to
maintain its conservative financial profile. Company Banked with IDBI Bank
Limited for their working capital needs. Company has sufficient working capital
limits of Rs. 400.000 millions from IDBI Bank Ltd concessional and extremely
competitive interest rate. Cash Flow for less than 2 years is adequate to
extinguish its entire debts timely. Company made most of purchases on cash
basis at discounted rates.
Opportunities and
outlook
The Opportunities
have gained momentum due to installation of many Pharma units in Himachal
Pradesh near to the existing site as compared to other competitor. In the next
few years, there would be a flow of orders by Pharma industries due to release
of ban by WTO. To meet the increasing demand, the company must gear-up with higher
productivity and better project management expertise to remain as a forerunner
in the Industry.
The company has to
continue to be a Cost leader to protect its profit margin and market share in
this highly competitive industry. The Product developed by company for overseas
customer received approval for orders of App. 100 MT per Month.
Threats
With the Foil
Industry showing signs of growth, number of new entrants already came and will
be further coming in this sector resulting surplus capacity by end of March
2007. The Company has to cope-up with
these threats
through a combination of cost leadership and project management expertise.
Export
The company's
contribution to foreign exchange earnings amounted to Rs.29.353 millions during
the year under review and the total foreign exchange utilized by the company
amounted to Rs.228.119 millions the
Details of which
are provided in annexure to the director's report. Company is presently
exporting App. 75 MT per month to more than twelve countries and further trying
to increase export to developed countries
Subject promoted in the joint sector by the Prem group of
industries and Rajasthan Industrial and Investment Corporation to set up
aluminium foil manufacturing plant. The company manufactures foils of various
qualities and thicknesses -- tagger foil, pharma foils, laminated foils,
blister foils from its 5000 MT Pipalia facility at Rajasthan.
Aluminium foils find a wide range of applications in packaging products
like tea, coffee, chocolates, confectionery, medical tablets, tobacco, etc.
Subject exports its products to
Subject, the third-largest aluminium-foil maker in the country, after Indal and
India Foils, has embarked upon a modernization-cum-expansion project to reduce
the scrap generation, power consumption and increase production capacity. It
was the first group company to mobilize funds for its project through a public
issue in Dec.'94. The project commenced commercial operation during 1996-97.
Website details attached
Their deep rooted family bonds. Nurtured by Late Shri
Parasraj G.Shah, the founder of Prem group who braving the extremes of weather,
set foot on the desert land of Rajasthan, to established a small unit for the
manufacture of aluminium conductor.
Today Prem group has grown into a conglomerate. And in the crown of this
multicrore group is a rare jewel – PG Foils. The company with the third largest
aluminium foil rolling capacity in India , and whose product are used in
various industries ranging from pharmaceutical, food & beverages,
communications, air conditioning and health products etc.
Needless to say, subject’s performance is the result of a
strong bond amongst the shah brother – Abhay P.Shah, Ashok P.Shah, and above
all Pankaj P shah, who with his entrepreneurial acumen has helped subject reach
the pinnacle of success.
Shri Pankaj P.Shah (Managing Director)
This third generation
entrepreneur who underwent an intensive training Foil technology at
SHRI ASHOK P SHAH (Joint Managing Director)
Rated in the commercial world as a businessman per excellence has diversified business interest. Under his guidance at subject, the energetic professionals with proven calibers and required expertise are never lacking in their efforts to make every single deal a resounding success.
SHRI ABHAY P SHAH (Whole-
Time Director)
To maintain consistency in day-to-day administration id this
professionally managed company is a dynamic young entrepreneur who proved his expertise
if handling purchase, marketing & exports with the required ability and
alacrity. His marketing efforts have brought to the company’s fold many top
multinational companies
Subject is a name synonymous with premium quality products,
imitable expertise and total customer satisfaction. It believes extending a
serving hand to their business associates and realizing their economic
aspiration.
It is the product excellence and perfection approach, which
have enabled us to build and maintain a long-term and strong relationship with
their customer.
A well-qualified, experienced and dedicated team of professionals forms a
formidable bastion at subject to ensure total satisfaction obits valuable
customers
All operations are constantly monitored and managed by this
finely honed group, which ensure that the company retains and excels further in
building up its reputation as internationally acknowledged aluminium foils
manufacturer. Subject is rightly proud of its know – how perfected over along
period of time.
History
A unit for manufacturing AAC/ACSR Conductors used for
overhead transmission of power was installed in the village Pipalia-Kalan in
the year 1962 when it was not even electrified. This shows the farsightedness
and enterpreneurship of the founder late Shri P.G. Shah, as his aim was to
develop his own village people.
After Installation of the unit Prem Cables Pvt. Ltd. coinciding with the Govt.
policy of rural industrialization, Prem Group gradually spread over and
established various units and the latest addition to the Group was Aluminum
Foil Plant-PG Foils Limited. This plant was launched for manufacture of
Aluminium Foil in its full range of products.
It is the first wholly Indian Plant of the Country, having
latest modern machinery and technical know-how. The well qualified experts are
capable of taking any challenge thrown at them and they are eager to work on
any new specification required by the customer. The aluminium foil is mainly
used as packaging material and has proved to be the best of its kind because of
its unique protective properties. It is moisture proof, gas proof, light proof
and hygienic. It reflects 96% of light and gives a point of sale appeal. For
these properties, the major consumer industry of aluminium foil obviously becomes
the pharmaceutical industry which uses almost half of the aluminium foil
produced in
Subject has taken a long journey into the life of all
Indians through it's versatile and extensive range of products and
applications. For years now they have catered to several needs of the society.
As a pouch material multiple laminates are used for storage of solids, liquids,
powders, granules of drugs, foods, oils, chemicals, spices etc. Subject is
licensed to produce 1,800 M/T of aluminium foil a year and are geared up to
meet all market requirements with the help of devoted team of young and
energetic technical and sales team led by their Managing Director Shri Pankaj
P. Shah. Village Pipalia-Kalan a very small village having population of about
5000 persons, is industrially expanding fast but the medical and hospital
facilities have not kept pace with the galloping growth rate of the population
and industries. Hence with the inspiration created by Late Shri Parasraj G.
Shah, it was projected to establish a 50 bedded general hospital named "PG
Finance
The company is promoted by well-known Prem Group of
Industries and was incorporated as public limited company on November 7Th,
1979. The company’s shares are listed at Mumbai, Ahmedabad & Jaipur stock
Exchanges.
The company’s total capital base is Rupees 70.800 millions with huge reserves.
The Company is totally debt-free and do not require any kind of financial
assistance or help from financial institutions. The Company is working solely
on its reserves.
The company’s production, sales, profits and reserves are
constantly growing @ 20%-25%.
The company is procuring total input materials on cash payment basis and
enjoying good reputation among its vendors.
Facilities
Headed by executive director (operations) having 25 years of
hard-core experience in every facet of foils manufacturing. Under his able
guidance a team of managers and production planning persons are adding strength
to PG Foils.
|
Roll grinding unit |
|
Co-extruded Poly Film Unit |
|
Captive Power Generating Plant |
|
Printing Cylinder Processing unit |
|
Fleet of trucks – Transport Division |
|
|
|
Electronic Artwork Preparation Section |
Manufacturing
Manager (works) and a team of engineers, supervisors,
skilled and qualified technical persons has designed and developed several
machines & processes which helped the company to become the lowest cost
foil manufacturing unit in
Subject’s production facility at Pipalia Kalan is capable of meeting the
manifold demands made by industry and offers its customers a range of products
made with combination of Aluminium foil, Paper , PET, PE, BOPP etc. of varied
thickness, width, different coatings
They excel in multilayer laminated and multicolor printed
flexible packaging materials. They continuously update production facilities to
optimize output and ensure quality products.
Geared- up with high performance modern equipments and machines.
Export
During
the last few years the company has been able to familiarize its products in
international market. The company is successfully exporting its products upto
entire satisfaction of customers in countries like
The
export division is active in exploring possibilities for establishment of its
products in many other countries. Increase in export sales remains our major
thrust.
Subject, which consist of aluminium foils, foil laminates
and flexible various uses in the packaging industry. Its versatile especially
in the packaging of products for :
v
Aseptic Packaging for Milk, Fruit
juice, Cooking Oil
v
Cigarettes foil Tobacco, Cigarettes and
mouth fresheners
v
Decoration foil
v
Label foil
v
Closure Caps/ PP Caps for glass or
plastic bottles, resale boxes etc.
v
Food Packaging
v
Butter, margarine, cheese
v
Chewing gum
v
Chocolate
Embossed
Laminated
Printed
v
Soup, pouches, flow wrap for biscuit,
coffee wrap etc.
v
Lids for yogurt, confectioners
v
Bottle neck decoration
v
Pharma foil
v
Blister
Strip
v
Pouches
Capsule
v
Tea
v
House Hold foil and kitchen foil
v
Insulation
v
Semi rigid container/ Casserole/ Tagger
v
Cable Wrap for Telecommunication
v
Bakery & confectionery Wraps
v
Contraceptive Wrap
v
Toiletry and cosmetic products
v
Lamitube for collapsible tubes for
toothpaste, skin care, ointments etc.
Customers
Subject is playing significant role in supply chain management
of its large customer base of different industries like pharmaceuticals,
Healthcare, Food & Beverages and Telecommunications etc. as a reliable
supplier.
Customer list of subject reads like the who’s who of large India and
multinational industrial giants like Aventis Ltd., Pfizer Ltd., Cadila
Pharmaceuticals Ltd., Dr. Reddy’s Laboratories, Dabur India Ltd., German
Remedies, Anglo French, Arya Vaidya Shala, Intas, Aristo Pharma Ltd. Medimet
Pharmaceuticals Ltd. Globe Pharmaceuticals Ltd., Renata Ltd., Hindustan Tin,
Air India, Thai Airways, Indian Railways, Sterlite Optical Technologies Ltd.,
Finolex Cables & Associated Capsules etc,
Vision
The vision is to become the strategies partners of the customers
throng innovations in aluminium foil packs and flexible packing.
Their mission is metamorphosis of PG Group into an
integrated multifaceted manufacturing powerhouse – a dynamic packaging
solutions provider to match the ever-changing market needs.
Projects
The company is expanding its operative production capacity
for manufacturing aluminium foils from 1800MT to 3500MT by installing balancing
equipments and modernization of the plant at the existing site at Pipalia Kalan
in Distt Pali, Rajasthan.
Though the company has an installed capacity of 5000MT p.a., the operative
capacity is restricted to 1800MT p.a. on account of various reasons, such as,
mismatched capacity, ageing of plant, power tripping, and inadequate capacity
of complementary machinery, higher scrap generation and higher power
consumption. To overcome these problems the company has embarked upon an
expansion cum modernization project which will technologically upgrade the
existing plant and enhance the operative capacity by installing balancing
equipments, thereby raising the operative capacity to 3000 Mt p.a.The advantage
that will accrue on account of the expansion cum modernization plan include
increase in operative production capacity, improved quality of finished goods
and product mix, reduction in scrap generation and power consumption
As the Company is a running unit, the benefit from the
proposed modernization cum expansion programme is likely to accrue gradually
during the course of implementation of the project.
SWOT Analysis The major strengths of the
proposed project of the company are expansion of existing capacity at low
capital cost, change in product mix with a greater proportion of high value
added foils, virtually no gestation period as the process of expansion and
modernization is on-going, economies of scale, two decades of experience of the
promoters in aluminium based industries, and large existing client base. Among
the major weaknesses of the project is the fact that orders for the imported
machinery is yet to be placed and that no firm arrangements have been made for
exports.
The main opportunity available to the Company is tapping of the existing and
growing demand for aluminium foils. The prime threats to the project include
competition from existing and new entrants in the field, development of
substitute products and the threat of obsolescence of machinery. The growth
rate envisaged in the project as a result of the expansion cum modernization
plan is 66.66% in the first two years, after which production would be
maintained at 3000MT p.a.
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. 40.55 |
|
|
1 |
Rs. 80.89 |
|
Euro |
1 |
Rs. 54.89 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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 |
|