MIRA
INFORM REPORT
|
Report Date : |
22.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
POLYPLEX CORPORATION LIMITED |
|
|
|
|
Registered Office : |
Lohian Head Road, Khatima, Dist. Udham Singh Nagar - 262 308, Uttaranchal |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
18.10.1984 |
|
|
|
|
Com. Reg. No.: |
11596 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L25209UR1984PLC011596 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELP08882G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACP0278J |
|
|
|
|
Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturing and Selling of Polyester Films, Polyester Chips and Solar PV Modules. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4250000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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
|
Registered Office : |
Lohian Head Road, Khatima, Dist. Udham Singh Nagar - 262 308, Uttaranchal, India |
|
Tel. No.: |
91-5943-250136 |
|
Fax No.: |
91-5943-250281 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
2, Ring Road, Kilokri, Opposite Maharani Bagh, New Delhi – 110 014, India |
|
Tel. No.: |
91-11-2463 1761 |
|
Fax No.: |
91-11-2462 0729 |
|
|
|
|
Corporate Office : |
B-37, Sector I, District – Gautam Budh Nagar – 201 301, Uttar Pradesh |
|
Tel. No.: |
91-120-2443716 to 19 |
|
Fax No.: |
91-120-2443723/24 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Lohia Head Road, Khatima, Dist. Udham Singh Nagar - 262 308, Uttaranchal |
|
Tel. No.: |
91-5946-255165/66 |
|
Fax No.: |
91-5943-250069 |
|
|
|
|
Branch 1 : |
Polyplex
(Thailand) Public Company Limited |
|
Tel. No.: |
66-2-6652706-8 |
|
Fax No.: |
66-2-6652705 |
|
|
|
|
Factory
Address : |
Siam Eastern Industrial Park
60/24, Moo 3, Tambol Mabyangporn, Amphur Pluakdaeng, Rayong 21140, Thailand |
|
Tel. No.: |
66-38-891352-4 |
|
Fax No.: |
66-38-891358 |
|
|
|
|
Branch 2 : |
Polyplex
Europa Polyester Film San. ve Tic. A.S. |
|
Tel. No.: |
90-282-6911241,44 |
|
Fax No.: |
90-282-6911052 |
|
|
|
|
Branch 3 : |
Polyplex
(Americas) Inc. |
|
Tel. No.: |
1-972-247-3836,47,58 |
|
Fax No.: |
1-972-243-1039 |
|
E-fax: |
1-240-371-8479 |
DIRECTORS
|
Name : |
Mr. Sanjiv Saraf |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S. G. Subramanyan |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Ramesh Bhatia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mukesh Kumar Jian |
|
Designation : |
Nominee Director – IDBI Limited |
|
|
|
|
Name : |
Air Chief Marshal O. P. Mehra (Retd.) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Brij Kishore Soni |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Suresh Surana |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjiv Chadha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pranay Kothari |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
41 years |
|
Qualification : |
B.Com (H), FCA, ACS |
|
Experience : |
18 years |
|
Date of Appointment : |
01.08.1985 |
|
Other Directorships : |
Optima Consultants Private Limited – Consultant |
KEY EXECUTIVES
|
Name : |
Mr. A K Gurnani |
|
Designation : |
Company Secretary |
|
|
|
|
Designation : |
Mr. Ranjit Singh |
|
Address : |
President (Film Business) |
|
Date of Birth/Age : |
49 years |
|
Qualification : |
B. E. (Mechanical), PGDBM |
|
Experience : |
24 years |
|
Date of Appointment : |
13.11.1996 |
|
Other Directorships : |
SRF Limited, Dy. General Manager Marketing and Planning. |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
|
|
|
Indian |
|
|
|
Indifiduals/ Hindu Undivided Family |
23099 |
0.16 |
|
Private Corporate Bodies |
844735 |
5.77 |
|
Sub Total |
867834 |
5.93 |
|
|
|
|
|
Foreign |
|
|
|
Individuals |
2000 |
0.01 |
|
Bodies Corporate |
5229067 |
35.71 |
|
Sub Total |
5231067 |
41.65 |
|
|
|
|
|
Institutional
Investors |
|
|
|
Mutual Funds/UTI |
1049105 |
7.16 |
|
Banks, Financial Institutions and Insurance Companies |
53771 |
0.37 |
|
Insurance Companies |
567406 |
3.88 |
|
FIIs |
291724 |
1.99 |
|
Sub Total |
1962006 |
13.40 |
|
|
|
|
|
Non Institutions |
|
|
|
Bodies Corporate |
2128928 |
14.54 |
|
Individuals |
|
|
|
Shareholding nominal share capital upto Rs.0.100 million |
2879807 |
19.67 |
|
Shareholding nominal share capital in excess of Rs.0.100 million |
770414 |
5.26 |
|
Any Other |
790544 |
5.40 |
|
OCB/ Foreign Company |
1200 |
0.01 |
|
Trust |
10500 |
0.07 |
|
Sub Total |
6581393 |
44.95 |
|
Grand Total |
14642300 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Polyester Films, Polyester Chips and Solar PV Modules. |
||||||
|
|
|
||||||
|
Products : |
Generic Names of the Principal Products of the Company (as per monetary terms) are as under:
|
GENERAL
INFORMATION
|
No. of Employees : |
About 1000 |
||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||
|
Bankers : |
Ø State Bank of India, Nainital Branch, Uttar Pradesh Ø HDFC Bank Limited Ø State Bank of Patiala Ø The Federal Bank Limited Ø Chinatrust Commercial Bank Ø State Bank of Hyderabad Ø State Bank of Mysore |
||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||
|
Facilities : |
Secured Loans : (Rs.
In Millions)
Unsecured Loans
: Corporate FC Loan from a Bank : Rs.178.500 millions |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Lodha & Company Chartered Accountants |
|
Address : |
New Delhi |
|
|
|
|
Group Companies : |
Polyplex Corporation Lijmited (Polyplex India) Year of Incorporation : 1984 Nature of Business : Manufacturing of PET Film Polyplex (Asia) Pte. Limited (PAPL) Year of Incorporation : 2004 Nature of Business : Investment Company Polyplex (Thailand) Public Company Limited (Polyplex Thailnad) Year of Incorporation : 2002 Nature of Business : Manufacturing of PET Film Polyoplex Singapore Pte. Limited (PSPL) Year of Incorporation : 2004 Nature of Business : Investment Company Polyplex Europe Polyester Film Sanayi Ve Ticaret Anonim Siketi
(Polyplex Europe) Year of Incorporation : 2004 Nature of Business : Manufacturing of PET Film Polyplex (America) Inc. (Polyplex America) Year of Incorporation : 1995 Nature of Business : Sales and Distribution Company |
|
|
|
|
Associates/Subsidiaries : |
Associates v Polyplex Infotech Private Limited v Manuputra Information Solutions Private Limited v Punjab Hydro Power Limited v Beehive Systems Limited v Sanjiv Sarita Investments Private Limited v Altivolus Infotech Private Limited Subsidiaries v Excel International Limited v Global Solar Energy (India) Limited v Polyplex (Thailand) Public Company Limited, Thailand v Polyplex (Asia) Pte. Limited, Singapore v Plolyplex (Singapore) Pte. Limited, Singapore v Polyplex Europe Polyester Film Sanayi Ve Ticaret Anonim Sirketi, Turkey v Polyplex (America) Inc., USA |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14642300 |
Equity Shares |
Rs.10/- each |
Rs.146.423
millions |
|
|
Add : Share Forfeiture Account |
|
Rs.5.786
millions |
|
|
Total |
|
Rs.152.209 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
152.209 |
152.209 |
152.209 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
936.184 |
1007.195 |
1008.674 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1088.393 |
1159.404 |
1160.883 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1057.170 |
825.315 |
757.587 |
|
|
2] Unsecured Loans |
178.500 |
175.000 |
80.000 |
|
|
TOTAL BORROWING |
1235.670 |
1000.315 |
837.587 |
|
|
DEFERRED TAX LIABILITIES |
156.216 |
171.824 |
188.002 |
|
|
|
|
|
|
|
|
TOTAL |
2480.279 |
2331.543 |
2186.472 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
970.244 |
1039.391 |
1049.098 |
|
|
Capital work-in-progress |
169.022 |
10.811 |
4.390 |
|
|
|
|
|
|
|
|
INVESTMENT |
752.633 |
671.951 |
751.130 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
2.565 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
174.895
|
206.545 |
181.909 |
|
|
Sundry Debtors |
272.807
|
350.455 |
235.738 |
|
|
Cash & Bank Balances |
37.989
|
48.170 |
30.488 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
263.345
|
175.824 |
119.635 |
|
Total
Current Assets |
749.036 |
780.994 |
567.770 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
140.965
|
118.837 |
152.992 |
|
|
Provisions |
19.691
|
52.767 |
35.489 |
|
Total
Current Liabilities |
160.656 |
171.604 |
188.481 |
|
|
Net Current Assets |
588.380 |
609.390 |
379.289 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2480.279 |
2331.543 |
2186.472 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
1706.760 |
|
1906.272 |
|
|
Other Income |
112.204 |
106.891 |
|
|
|
Total Income |
1818.964 |
2159.770 |
1906.272 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
11.120 |
187.876 |
385.137 |
|
|
Provision for Taxation |
(0.802) |
56.412 |
122.356 |
|
|
Profit/(Loss) After Tax |
5.961 |
131.464 |
262.781 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
705.358 |
840.956 |
625.703 |
|
|
Other Earnings |
49.045 |
0.000 |
0.093 |
|
Total Earnings |
754.403 |
840.956 |
625.796 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
34.086 |
71.072 |
34.027 |
|
|
Stores & Spares |
33.905 |
64.092 |
40.182 |
|
|
Capital Goods |
101.073 |
94.737 |
4.850 |
|
Total Imports |
169.064 |
229.901 |
79.059 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
1301.955 |
1431.387 |
1056.505 |
|
|
Interest |
85.587 |
98.779 |
90.156 |
|
|
Depreciation & Amortization |
96.227 |
91.830 |
92.156 |
|
|
Other Expenditure |
313.672 |
344.798 |
282.318 |
|
Total Expenditure |
1797.441 |
1966.794 |
1521.135 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Sales Turnover |
440.000 |
504.500 |
448.400 |
|
Other Income |
18.500 |
62.100 |
19.600 |
|
Total Income |
458.500 |
566.600 |
468.000 |
|
Total Expenditure |
417.500 |
472.300 |
452.500 |
|
Operating Profit |
41.000 |
94.300 |
15.500 |
|
Interest |
23.800 |
26.400 |
23.000 |
|
Gross Profit |
17.200 |
67.900 |
(07.500) |
|
Depreciation |
21.500 |
18.200 |
18.000 |
|
Tax |
01.500 |
16.800 |
(06.900) |
|
Reported PAT |
(02.00) |
34.600 |
(17.100) |
200606 Quarter 1
NOTES:
1) Figures have been regrouped, wherever necessary. 2) The Company does not
have more than one reportable segment. Accordingly, pursuant to Accounting
Standard (AS-17) on 'Segment Reporting' issued by The Institute of Chartered
Accountants of India, segmental information is not required to be provided. 3)
The unrealised exchange loss forthe quarter amounting to Rupees 200 lacs in
respect of long term debt has not been accounted for, The gain/loss, if any,
based on year-end exchange rates will be accounted for atthe year-end. 4) In
view of revised Accounting Standard (AS-15) on 'Employee Benefits' issued by
The Institute of Chartered Accountants of India, which is applicable w.e.f.
April 1, 2006, the amount of transitional provision (i.e. up to March 31, 2006)
will be adjusted with General Reserve at the year-end. However, in the opinion
of the Management, there will not be any material impact. 5) Details of no. of
investor complaints for the quarter ended June 30, 2006 Beginning-6,
Received-8, Disposed off-14 and Pending-0. 6) These results were reviewed by
the Audit Committee and have been approved by the Board in its meeting held on
July 31,2006 7) The limited review under Clause 41 of Listing agreement has
been completed by the statutory auditor.
200609 Quarter 2
Notes:
EPS is Basic and Diluted Status of Investor Complaints for the quarter
ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 15 Complaints disposed off during the
quarter 12 Complaints unresolved at the end of the quarter 03 1. Figures have
been regrouped wherever necessary. 2. The Company does not have more than one
reportable segment. Accordingly, pursuant to Accounting Standard (AS-17) on
Segment Reporting issued by The Institute of Chartered Accountants of India,
segmental information is not required to be provided. 3. The unrealised
exchange loss of Rs 16.30 million for the year to date in respect of long term
debt has not been accounted for loss / gain, if any, based on year-end exchange
rates will be accounted for at the year end. 4. Other Income for the current
quarter includes Rs 45.10 million (Previous year Rs 48.80 million) on account
of dividend income from its subsidiary Polyplex Thailand Public Company
Limited. 5. The Exceptional Item' during the current quarter represents long
term capital gain of Rs 0.40 million due to exchange rate fluctuation on
redemption of preference shares held as investment in subsidiary company viz
Polyplex Asia Pte Limited. 6. In view or revised Accounting Standard (AS-15) on
Employee Benefits' issued by the institute of Chartered Accountants of India,
which is applicable w.e.f. April 01, 2006, the amount of transitional provision
(i.e. upto March 31, 2006) will be adjusted with the General Reserve at the year
end. However in the opinion of the Management, there will not be any material
impact. 7. The Board of Directors (the Board) has approved the setting up of a
new Thin Film line at Khatima with a capacity of 24,000 TPA alongwith
additional Pat Chips capacity at an estimated cost of approx USD 38 million. 8.
These results were reviewed by the Audit Committee and have been approved by
the Board in its meeting held on October 31, 2006. 9. The Limited Review under
clause 41 of Listing Agreement has been completed by the Statutory Auditors.
200612 Quarter 3
Notes
Expenditure Includes (Increase)/Decrease in stock in Trade Rs (10.00)
million Consumption of Raw Material Rs 315.30 million Power & Fuel Rs 38.30
million Staff Cost Rs 33.40 million Other expenditure Rs 75.50 million Tax
Includes Provision for Current Tax Rs (8.00) million Fringe Benefit Tax Rs 1.10
million Deferred Tax Rs (1.50) million EPS is Basic and Diluted Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter 03 Complaints Received during the quarter 10
Complaints disposed off during the quarter 09 Complaints unresolved at the end
of the quarter 04 1. Figures have been regrouped wherever necessary. 2. The
Company does not have more than one reportable segment. Accordingly, pursuant
to Accounting Standard (AS-17) on 'Segment Reporting' issued by The Institute
of Chartered Accountants of India (ICAI), segmental information is not required
to be provided. 3. In view of revised Accounting Standard (AS-15) on 'Employee
Benefits' issued by the ICAI, which is applicable w.e.f. April 01, 2006, the
amount of transitional provision (i.e. upto March 31, 2006) will be adjusted
with the General Reserve at the year end. However in the opinion of the
Management, there will not be any material impact. 4. These results were
reviewed by the Audit Committee and have been approved by the Board in its
meeting held on January 31, 2007. 5. The Limited Review under clause 41 of
Listing Agreement has been carried out by the Statutory Auditors.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.12.2006 |
|
Debt-Equity Ratio |
0.99 |
0.79 |
0.75 |
|
Long Term Debt-Equity Ratio |
0.76 |
0.59 |
0.63 |
|
Current Ratio |
1.30 |
1.14 |
1.16 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.90 |
1.10 |
1.03 |
|
Inventory |
9.79 |
11.56 |
11.53 |
|
Debtors |
5.99 |
7.66 |
9.98 |
|
Interest Cover Ratio |
1.12 |
2.84 |
4.98 |
|
Operating Profit Margin(%) |
10.57 |
17.01 |
27.83 |
|
Profit Before Interest And Tax Margin(%) |
5.42 |
12.92 |
23.36 |
|
Cash Profit Margin(%) |
5.47 |
9.95 |
17.21 |
|
Adjusted Net Profit Margin(%) |
0.32 |
5.86 |
12.74 |
|
Return On Capital Employed(%) |
4.51 |
13.95 |
25.86 |
|
Return On Net Worth(%) |
0.53 |
11.33 |
24.73 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.100.00 |
|
Low |
Rs.95.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 18th October, 1984 at Udham Singh
Nagar in Uttaranchal having Company Registration Number 11596.
Subject obtained the Certificate of Commencement of Business on July 22,
1985.
The main object of the company was to set up an industrial undertaking
for the manufacture of polyester film (general purpose, balanced and
tensilised).
Promoted by Sanjiv Saraf in association with Mahalaxmi Trading &
Investment Company, non-resident corporate body, the company currently operates
a polyester film plant (cap. : 6000 tpa) at Khatima, Nainital district, Uttar
Pradesh. The plant was commissioned in 1988 with a capital outlay of about Rs.
400 millions. The company's product is biaxially-oriented polyester film, a
thermoplastic film used in a range of products including audio, video, computer
tapes, flexible packaging, metallised yarn, stamping foils, graphic arts,
X-rays, electrical insulations, sun-control films, capacitors and other
applications.
With good prospects for the polyester film industry, the company expanded its capacity
14,830 tpa at a cost of around Rs. 700 millions. The capacity expansion was
funded by a private placement of shares (in November, 1994, it made a private
placement of shares at a premium of Rs. 130) and internal accruals.
The company has imported equipment from leading international suppliers such as
Lindauer Dorner, Barmag and Kampf, Germany; Nishimura, Japan; Nucleometre FAG,
France; and Extrusion of Dies, USA. This, coupled with the technical skills of
its operating personnel and emphasis on quality control, has enabled it to
produce films which enjoy a premium position not only in India but also in the
international market.
The company has entered into a Joint Venture Agreement with Global Solar Energy
LCC for its PV Project, with the terms and agreement of both have equal equity
position of 50% each, assets of PV division transferred to going concern, Funds
will met by partners in the ratio of proposed shareholding and Global Solar
Energy used as an implementing entity. Company’s corporate office project is at
an advanced stage.
A forward integration programme for setting up a Metallizer is in the
process at a cost of Rs.100 millions.
This has been financed by way of term loan to the extent of Rs.70.000
millions from IDBI and the balance through internal accruals. An expansion programme of polyester film is
in an active stage. This project was earlier planned to be located in UAE but
due to social uncertainty in the Middle East the company has decided to
relocate the project in Thailand. The total project cost of US$ 30 million,
including US $ 6 million towards working capital is proposed to be financed by
way of debt to the tune of US $ 20 million and the balance by way of equity
/preference shares. The Metalliser project has been delayed and has been
scheduled to be in the financial year 2002-03.
BUSINESS
Subject is engaged in the business as Manufacturers and Sellers of
Polyester Films, Polyester Chips and Solar PV Modules.
The company sells its products under the brand name “SARAFIL”.
The company is an Export Oriented Unit and is being set up under
Electronic Hardware Technology Park (EHTP) Scheme. It is based on new generation technology sourced from USA and
offers distinct cost advantage over the traditional silicon based alternatives.
Company’s fixed assets include Freehold Land, Leasehold Land, Buildings,
Plant and Machinery, Electrical Installations, Furniture and Fixtures, Office
Equipments and Vehicle.
A further escalation particularly in the last two quarters
of the year under review, in the competitive pricing pressures in the domestic
as well as international markets, resulting from new capacity creation,
continued to affect sales realization and contribution margin. In spite of a
small increase in film production there has been a decrease in EBITDA of about
47% during the year under review attributable primarily to a reduction in
average selling price of film by about 17%.
Depreciation Costs were higher by about 5% as against last year on account of
additions to fixed assets.
There is an exceptional charge of Rs. 10.403 Millions on account of foreign
exchange fluctuation on redemption of part of Preference Shares held by the
company in its subsidiary Polyplex (Asia) Pte. Limited. (PAPL) in Singapore at
face value.
The Profit before Tax (PBT) was substantially lower by 94%. Profit after Tax
(PAT) was lower by about 95%.
Subsidiary
Companies
Polyplex (Thailand) Public Company
Limited, Thailand (Polyplex Thailand)
The Company together with its wholly owned subsidiary PAPL owns
Polyplex Thailand to the extent of 70%. Polyplex Thailand is listed on The
Stock Exchange of Thailand.
During the year under review Polyplex Thailand produced 36877 MT (38199 MT in
2004-05) of Polyester Film with the capacity utilization factor of 94.6%.
Profit for the year was lower due to pressure on margins, particularly during
the second half, higher power and fuel costs, employee costs and administrative
overheads.
The Board of Polyplex Thailand has recommended a dividend of Bhat 0.28 per
share as per its policy stated in the prospectus of about 30% of its annual net
profit, taking into account economic conditions, growth plans, future
deployment opportunities, the Company's financial position and liquidity and
subject to the approval by the shareholders.
In order to improve its product mix towards more value added products, Polyplex
Thailand proposes to set up an extrusion coating line at an estimated total
cost of U.S. Dollars 5 million.
Polyplex (Asia) Pte. Limited., Singapore
(PAPL)
PAPL is a wholly owned subsidiary of the Company. The Company
holds the entire ordinary share capital of PAPL comprising of 1,00,000 ordinary
shares of U.S. Dollars 10 each at par.
PAPL continues to hold 428 million equity shares of Baht 1
each of Polyplex Thailand acquired at a cost of U.S. Dollars 10.32 million
during 2004-05. The market value of this investment as on March 31, 2006 was
U.S. Dollars 54.22 million.
PAPL earned a net profit of U.S. Dollars 3.63 million during the year by way of
dividend on its investment in Polyplex Thailand.
Polyplex (Singapore) Pte. Limited.,
Singapore (PSPL)
PSPL is a wholly owned subsidiary of Polyplex Thailand by virtue
of investment in 1,00,000 ordinary shares of U.S. Dollars 10 each at par. The
movement in Preference share capital structure of the company is as under
PSPL is the investment vehicle of Polyplex Thailand for Polyplex Europa. PSPL
continues to hold 1.3 million equity shares of YTL 5 each of Polyplex Europa
issued at par at a cost of U.S. Dollar 4.62 million.
Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi, Turkey
(Polyplex Europa)
The following capacities were commissioned at the site in Corlu, Turkey
Project Capacity Commencement Project Cost (in '000)PET Film Line(8.7 metre)
24,000 TPA December 2005 $ 39,586Co-GenerationPower Plant 4 MW December 2005 $
2,153Metalliser 5,000 TPA March 2006 $ 2,966
The cost of the project has been met by contribution by Polyplex Thailand/its
subsidiary PSPL and borrowings.
A Project, for backward integration into chips for captive consumption is
currently under implementation. This will involve an outlay of about Euro 10
million and is expected to commence commercial operation in the third quarter
of the current financial year.
With the improvement in productivity and full year operations of the Film line
together with the commencement of PET Chips operations, Polyplex Europa expects
to post a healthier financial performance during the current year.
Polyplex (Americas) Inc. USA (Polyplex
America) (erstwhile Spectrum Marketing Inc.)
Polyplex America became a subsidiary of the Company w.e.f. January 1, 2006,
with the investment by Polyplex Thailand of an amount of US Dollars 1.015
million. The Company also has an existing investment of U.S. Dollars 0.125
million in Polyplex America. Total investment of the Polyplex group in Polyplex
America aggregates to 90.12% in the ordinary capital.
Polyplex America is a marketing arm of the Polyplex Group for the North
American markets.
With full year operations in 2006-07, Polyplex America anticipates a better
financial performance in the current year.
PRODUCT
PET film is a high performance film made from polyethylene terephthalate
resin (generally known as Polyester Chips), which in turn is produced from
dimethyl terephthalate (DMT)/Purified Terephthalic Acid (PTA) &
Mono-Ethylene Glycol (MEG).
The five main categories of PET film applications are as under:
Packaging: Commodity films and specialty film used primarily for flexible
packaging.
Imaging: Printing films - layout base, masking film and printing plates, as
well as reprographic, microfilms etc.
Electrical: Wire and cable wrap, membrane switches, flexible printed circuits,
capacitors and motor insulation.
Magnetic media: Audio and video tape, as well as computer tape and floppy
discs.
Others (Industrial): Primarily Industrial comprises of Hot stamping foils,
photo-resist, labels and many more.
Another broad categorization made by the industry is Thin (including Magnetic
media) and Thick films. The Company operates in the Thin film segment focusing
on the Packaging, Industrial and Electrical (PIE) segments.
INDUSTRY SCENARIO
Global
DEMAND
The worldwide merchant market of PET film in 2005 was estimated at 1.49 million
tons, up from 1.23 million tons in 2000, which represents a CAGR of 3.88%. Of
this about 80% is estimated to be accounted by Thin films. The sector with
highest demand for thin PET film is Packaging, followed by Industrial and
Electrical films respectively. The combined demand for these segments accounted
for 71% of the total demand in 2000 and was 88% in 2005. This represented a
growth of 49% during 20002005. Electrical recorded the highest growth of 64%,
Packaging 58% and Industrial 31%. The CAGR for these segments between 2000 and
2005 has been 8.28%.
Classified by region, demand for PET film was the -highest in America, West
Europe and Japan, accounting for 28%, 21% and 20% of world consumption
respectively in 2000. Because of higher growth rates, Other Asia' (Asia other
than Japan & Korea) has emerged as the largest market with a share of 31%
followed by America and Japan with 22% and 19% respectively.
SUPPLY
The global merchant capacity for PET film in 2005 was approximately 2.0
million tons up from 1.5 million tons in 2000, which represents a CAGR of
5.92%. Thin film capacity was estimated at 1.56 million tons in 2005, about 78%
of the total. Since 2000, there has been a shift of production towards Asia
(excluding Japan and Korea) whereas the capacity in all the other markets has
remained largely, unchanged.
Classified by region, Other Asia' had the highest capacity in 2005 accounting for
42%, followed by America and Korea with 15.32% and 15.04% respectively. During
2000-2005, Other Asia' also was the region that had the highest growth rate of
PET film production capacity with growth rate of 123% due to the setting up of
new lines by existing and new manufacturers in India, China and other
developing countries in Asia.
INDUSTRY STRUCTURE AND EVOLUTION
After a period of PET film shortage in the mid-90's, which led to high
profitability for all producers worldwide, the industry saw a huge capacity
build up resulting in a significant oversupply situation. Competitive pressure
further aggravated by the East Asian currency crisis in mid-1997 led to a
severe erosion of prices to unprecedented levels and all producers of PET film
went through an extremely difficult period between 1997 and 2000. Limited
capacity creation, large scale consolidation as also the rationalization of
capacity by closure of uneconomic old lines by some players, helped restore a
semblance of stability to the PET film markets worldwide towards the end of
2000.
With proliferation of technology and capacity, the emphasis has moved to
evolving a competitive cost structure. This, along with increasing concerns on
optimizing return on capital has led to consolidation among the World Majors'
and has created businesses which are truly global in scope in terms of
capacity, geographical reach and product offering.
Several new lines have been setup in China in the recent past as a
consequence of which it is estimated that the capacity in this country has
increased from around 136,000 MT in 2003 to 566,000 in 2005. Further lines are
under planning/ implementation which could add another 100,000 MT by 2007.
While as of now the impact of producers from China in the international markets
in not pronounced, the capacity overhang is a matter of continued concern.
Should the new entrants be successful in achieving good quality and operating
levels and build up distribution capabilities, PET film markets could be
affected adversely.
There are currently three broad classes of PET film manufacturers classified by
size of production capacity:
World majors with production capacity of over 100,000 tons per year (e. g.
Dupont-Teijin, Mitsubishi, Toray and SKC)
Mid-size players with production capacity between 50,000 - 100,000 tons
per year (e.g. Kolon, Polyplex, Cifu and Jindal) and
Small / local producers with production capacity of less than 50,000 tons per
year
Demand for PET film for magnetic media application has been high in the past,
prompting major producers to focus on this segment. Competition in the magnetic
media segment is thus confined only to these majors based on their long and
well established expertise and experience.
For other PET films including Thin film, competition is seen among all groups.
Due to consistently rising demand, especially for Thin film which is used in
Packaging, Industrial and Electrical segments where healthy growth of demand is
recorded, small and mid sized producers (including Polyplex Group) have
expanded their capacity which could lead to a higher market share for
them.
CURRENT
SCENARIO
While operating rates in Thin film continue to be higher than Thick film, with
capacity growing faster than incremental demand in Thin films, the capacity
utilization in the industry will trend downwards in the next few years on an
aggregate basis.
TRADE ACTIONS
International trade in PET film has been prone to trade actions particularly in
Europe and U.S.A. where there are large imports.
Subject employs around 440 persons in its’ set up.
Promoted by Sanjiv Saraf in association with Mahalaxi
Trading & Investment Company -- a non-resident corporate body -- Polyplex
Corporation currently operates a polyester film plant (cap. : 6000 tpa) at Khatima,
Nainital district, UP. The plant was commissioned in 1988 with a capital outlay
of about Rs 40 cr. The company's product is biaxially-oriented polyester film,
a thermoplastic film used in a range of products including audio, video,
computer tapes, flexible packaging, metallised yarn, stamping foils, graphic
arts, X-rays, electrical insulations, sun-control films, capacitors and other
applications.
With good prospects for the polyester film industry, the company expanded its
capacity 14,830 tpa at a cost of around Rs 70 cr. The capacity expansion was
funded by a private placement of shares (in Nov.'94 it made a private placement
of shares at a premium of Rs 130) and internal accruals.
Polyplex has imported equipment from leading international suppliers such as
Lindauer Dorner, Barmag and Kampf, Germany; Nishimura, Japan; Nucleometre FAG,
France; and Extrusion of Dies, US. This, coupled with the technical skills of
its operating personnel and emphasis on quality control, has enabled it to produce
films which enjoy a premium position not only in India but also in the
international market.
The company has entered into a Joint Venture Agreement with Global Solar Energy
LCC for its PV Project, with the terms & Agreement of both have equal
equity position of 50% each, Assets of PV division transferred to goint
concern, Funds will met by partners in the sration of proposed shareholding
& Global Solar Energy used as an implementing entity. Company corporate
office project at an advanced stage.
A forward integration programme for setting up a Metallizer is in the process
at a cost of Rs.1000.00 lacs.This has been financed by way of term loan to the
extent of Rs.700.00 lacs from IDBI and the balance through internal accruals.An
expansion programme of polyester film is in a active stage.This project was
earlier planned to be located in UAE but due to social uncertainty in the
Middle East the company has decided to relocate the project in Thailand. The
total project cost of US $ 30 million,including US $ 6 million towards working
capital is proposed to be financed by way of debt to the tune of US $ 20
million and the balance by way of equity /preference shares. The Metalliser
project has been delayed and has been scheduled to be in the current financial year
ie 2002-03.
Polyplex (Thailand) Public Company Limited(PTL)-a subsidiary of Polyplex
Corporation Limited-has made IPO of 240 million ordinary shares of Baht 1 each
at an offering price of Baht 6.90 per share.The proceeds raised through IPO by
the foreign subsidiary,are proposed to be utilized towards repayment of Loans
to Financial Institutions.With the making of IPO,the shareholding of the
company in PTL has come down to 70%.
Website Details :
Polyplex is one of India’s leading manufacturers and
exporters of Biaxially Oriented Polyester (BOPET) Film for packaging,
electrical and other industrial applications.
With its headquarters in NOIDA, New Delhi the Company has
three PET Film manufacturing facilities– one located in Khatima in the state of
UttaranchAal, India, another at Rayong province in Thailand (owned and operated
by Polyplex (Thailand) Public Company Limited. (PTL), its subsidiary) and the
latest facility at Çorlu, Tekirdag in Turkey (owned and operated by Polyplex
Europa Polyester Film San. ve Tic. A.S. (PE), which is a wholly-owned
subsidiary of PTL).
Polyplex has established itself as one of the most
profitable producers of PET Film by way of cost efficient operations resulting from
high productivity and low overheads. Its products have gained wide acceptance
in the Global markets, such as USA, Europe, South-East Asia, South America,
North America and Australia, where the Company has been consistently exporting
about 75% of its production.
The Company has a dynamic workforce of about 400 employees
in India, more than 250 employees in Thailand and more than 150
employees in Turkey.
With its expansion in Turkey, Polyplex has a capacity of
83,000 TPA. The capacity enhancement in Turkey has made Polyplex the 5th
largest Thin Film Producer in the world.
History
Polyplex was incorporated in 1984 and commenced commercial operations
with its first Film line of 4000 TPA in May 1988, which was subsequently
increased to 6000 TPA. With its operations stabilizing, by the mid 90’s,
Polyplex was able to emerge as one of the most profitable producers of
Polyester Film in India.
Polyplex undertook an expansion in film capacity by adding another film
line of 9000 TPA in March 1996. It also integrated backward into the
manufacture of Polyester Chips meant for captive consumption, and commenced
production in March 1997.
While mirroring industry trends, the Company’s financial performance has
been consistently better than the industry, resulting from the Company’s focus
on Polyester Films, its strategic understanding of the PET Film market and
operational efficiencies. Initiatives such as TPM, BPR and implementation of
ERP have lead to sustained improvements in productivity. A turnaround in market
conditions since mid-2000 has seen a significant improvement in the
profitability of their operations, thus creating conditions for further growth.
Following from the Company’s objective of being a PET Film manufacturer
of Global significance, Polyplex expanded its film capacity further by
investing in a new film line of 15000 MT in Thailand. The new line was
commissioned on April 2, 2003 within the budgeted costs and ahead of time.
Following this, PTL has set up its next PET film line with a capacity of 15000
MT in a record time of nine months. The line commenced commercial production in
November 2003.
The Company also commissioned a Metallizer in India in December 2002.
This has enabled the Company to broaden its product portfolio and improve value
additions.
These investments have strengthened the Company’s competitive position
in the PET Film business ensuring continued cost leadership. This together with
the current demand-supply situation, would enable Polyplex to provide an
attractive value proposition to its customers and investors.
Production in both the India and the Thailand units has been more than
rated capacity. Consequently in 2003-04 capacities were restated at 20,000 MT
for India and 39,000 MT for Thailand.
During 2004-05, the Company took steps to implement a Polyester film
plant in Turkey and has formed a Company in Turkey, Polyplex Europa Polyester
Film San. Ve Tic. A.S., for this purpose. This unit successfully started
commercial production in December 2005.
During 2005-06, Company planned to set up a Silicone Coater Plant with
an investment of around Rs. 220 millions. Currently Trial runs are being
undertaken.
Plants Installed
Capacity (MT) Remarks
Polyplex
Corporation Limited. (PCL)
PET Film 20000 -
Polyester Chips 20000 For
captive use
Metallizer 4800 -
Silicone Coater 2000 Scheduled
to
commence production in July 06.
Polyplex
(Thailand) Public Co. Limited (PTL)
PET Film 39000 -
Polyester Chips - Batch Polycondensation 7000 For
captive use
Polyester Chips - Continuous Process 45500 Commenced
production in February 2005
Metallizer 4800 Commenced
production in June 2005
Polyplex Europa
San. ve Tic. A.S. (PE)
PET Film 24000 Commenced
production in December 2005
Metallizer 5000 Commenced
production in March 2006
Polyester Chips - Continuous Process 45500 Commencement
scheduled in Third Quarter of 2006-07.
Polyplex in Thailand (PTL)
Polyplex (Thailand) Public Company Limited., is a subsidiary of Polyplex
Corporation Limited. The Company commenced commercial production on April 2,
2003 from its first Polyester Film line located in Rayong province. With the
start of production at their second PET film line on November 13, 2003, they
have a total capacity of 39000 MT. In September 2004, they also successfully
started operations of their batch polycondensation PET chips plant. After the
startup of the continuous process PET chips plant, the company has become
self-sufficient in its raw material requirement and improved its value
addition. The total investment in these projects is about USD 60 million.
Polyplex in Turkey (PE)
A wholly-owned subsidiary of PTL, Polyplex Europa Polyester Film Sanayi
ve Ticaret A.S. has been formed in 2004-05 for setting up a Thin Film line with
a capacity of 24000 MT in the Free Zone in Çorlu, Tekridaag in Turkey. The Film
line successfully started commercial production in December 2005. Metallizer
has also successfully started production in March, 2006. PE is now in the
process of implementing a Chips plant at the existing location. The total
investment in these projects is about USD 55 million.
Polyplex in USA
Polyplex (Americas) Inc. is a subsidiary of
PTL. This company is a distributor of Polyplex Corporation Limited for North
American Region.
Milestones
1984 Polyplex
Corporation Limited is incorporated.
1987 Became
a listed company in India.
1988 Commences
commercial operations with its first Film line of 4000 TPA.
1996 Polyplex
undertakes expansion in Film capacity by adding a new Film line of 9000 TPA.
1997 Commences
integrated backward manufacturing of Polyester Chips meant for captive
consumption.
2002 Polyplex
commissions a Metalliser in India with a capacity of 4800 TPA.
2003 Polyplex
(Thailand) Public Company Limited (PTL) commences operations in Thailand with a
39,000 MT PET film plant.
2004 PTL’s
Batch Polycondensation PET chips plant commences in September.
2004 PTL
successfully floated an IPO and is listed on Stock Exchange of Thailand.
2005 PTL’s
Continuous Process PET chips plant commences in February.
2005 PTL
commissions a Metallizer in Thailand with a capacity of 4800 TPA in June.
2005 PE
commences operations in Turkey with a 24,000 MT PET film plant in December.
2006 PE
commissions a Metallizer in Turkey with a capacity of 5000 TPA in March.
2006 PTL
invested USD 1 Mn in Polyplex America to Acquire 90% stake in the
Company.
Product Description
Biaxially oriented PET film (BOPET) is used successfully in a wide range
of applications, due to its excellent combination of optical, physical,
mechanical, thermal, and chemical properties, as well as its unique
versatility.
v
Optically brilliant, clear appearance
v
Unequaled mechanical strength and toughness
v
Excellent dielectric properties
v
Good flatness and coefficient of friction (COF)
v
Tear-resistant and puncture-resistant characteristics
v
Wide range of thickness-as thin as 1 micron up to 350 micron
v
Excellent dimensional stability over a wide range of temperatures
v
Very good resistance to most common solvents, moisture, oil, and grease
v
Excellent barrier against a wide range of gases
PET film can also be modified:
v
from extremely low shrinkage (<0.1%) to as high as about 75%-in any
direction;
v
with pigments and fillers into a wide range of colors, haze,
translucency, or opacity; and
v
to change surface textures from very smooth to any desired roughness.
A wide range of chemical treatments (in addition to corona) can be
applied to PET film during its manufacture to help it adhere to various
coatings, such as inks, adhesives, metalization, etc. Surface treatments can
also be applied to incorporate properties like surface-slip and anti-static.
Yet another approach is co-extrusion, where different polyester layers are
combined to obtain properties like built-in heat sealability, rough surface
with high clarity, etc.
Details on Surface Treatment
In addition to its versatility in properties and applications, PET film is also
among the most environmentally friendly materials offered. Hundreds of film
grades are currently available to meet the needs.
Quality and Services
Their
commitment to Total Customer Satisfaction through consistent Quality, reliable
Delivery and prompt Service reflects in their ISO 9002 and 14001 accreditation, as also in the institutionalization of a
Quality Assurance System, based on Standardization, Customization, Conformance,
and Continuous Training and Improvement. Implementation of Total Productive
Maintenance (TPM), with its focus on Productivity and Quality and utilization
of an Enterprise wide Resource Planning (ERP) platform, SAP R/3, enables them
to proactively monitor and control their business processes.
Environment Statement
PET is considered to be a "green" or environmentally friendly
polymer. The reason being that PET and PET-based products are –
v
Safe
v
Non-toxic
v
Do not contains heavy metals
v
Do not use plasticizers
v
Lightweight
v
Easily recycled
As the demand for PET grows, more and more applications are being developed.
This will allow industries throughout the world the ability to use PET Film to
make stronger, lighter products-thus helping them replace other heavier
materials that have undesirable environmental characteristics.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.14 |
|
UK Pound |
1 |
Rs.84.71 |
|
Euro |
1 |
Rs.57.58 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|