MIRA
INFORM REPORT
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Report Date : |
07.05.2007 |
IDENTIFICATION DETAILS
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Name : |
UFLEX INDUSTRIES
LIMITED |
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Formerly Known as : |
Flex Industries Limited |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.06.1988 |
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Com. Reg. No.: |
55-32166 |
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CIN No.: [Company
Identification No.] |
L74899DL1988PLC032166 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELF00184C /
MRTF00050B |
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PAN No.: [Permanent
Account No.] |
AAACF0109J |
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Legal Form : |
Subject is a
public limited liability company. The
company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of
flexible packing materials of printed laminated of plastics and paper based
materials. |
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 15000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject has
turned the corner. Performance and financial status has shown
improvement. Payments are reported as
slow but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-120-3982121 |
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Fax No.: |
91-120-2582532 |
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E-Mail : |
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Website : |
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Corporate Office : |
A-107, Sector-IV,
Noida – 201 301, |
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Marketing
Offices : |
·
A-1,
Sector 60, District Gautam Budh Nagar, Noida - 201 301, Uttar Pradesh Tel. No. 91-11-24580500 Fax No. 91-11-24580152 / 511 / 003 E Mail : ptyle@flexfilm.com ·
A-1,
Sector 60, District Gautam Budh Nagar, Noida - 201 301, Uttar Pradesh Tel. No. 91-120-24580500 Fax No. 91-120-24580511/4580003 Website.: http://www.flexfilm.com |
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Plants : |
·
A-1,
Sector-60, Noida, Uttar Pradesh ·
D-1-2,
15-16, Sector 59, Noida, Uttar Pradesh ·
29-B,
Malanpur Industrial Area, Distt. Bhind, ·
A-2A,
Sector – 60, Noida, Uttar Pradesh |
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Branches : |
·
118-119,
Damji Shamji Udyog Bhawan, 25-A, ·
A-16,
FMC Fortuna, 234/3A (2nd Floor), ·
443,
2nd Floor, 7th Block, Koramangala, |
DIRECTORS
|
Name |
Mr. Ashok
Chaturvedi |
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Designation |
Chairman and
Managing Director |
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Qualification |
B.Sc. |
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Experience
|
27 years |
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Date of
Appointment |
01.08.1988 |
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Last
Employment |
Flex Laminaters
Limited (Chairman and Managing Director) |
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Name |
Mr. Ravi
Kathpalia |
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Designation |
Director |
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Name |
Mr. R. P. Agrawal |
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Designation |
Director |
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Name |
Mr. M.G. Gupta |
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Designation |
Director |
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Name |
Mr. A. Karati |
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Designation |
Nominee – ICICI
Bank |
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Name |
Mr. S.K. Mandal |
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Designation |
Nominee – IFCI |
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Name |
Mr. P. Abraham |
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Designation |
Nominee – UTI |
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Name |
Mr. Paresh Nath
Sharma |
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Designation |
Whole Time
Director |
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Name |
Mr. S. K. Kaushik
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Designation |
Whole Time
Director |
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Name : |
Mr. Ajay Krishna |
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Designation : |
Vice President
(Legal) and Company Secretary |
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Name : |
Mr. R. K. Mishra |
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Designation : |
Assistant Company Secretary |
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Name : |
Mr. R.P. Agrawal |
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Designation : |
Director |
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Date of
Birth/Age : |
12.07.1932. |
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Qualification
: |
FCA, LL.B. |
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Date of
Appointment : |
19.08.1997 |
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Directorship in
other Public Limited Companies : |
- Flex
Engineering Limited |
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Member/Chairman
of Committee of the Board of the Public Limited Companies on which he is Director : |
Audit Committee - Flex Industries
Limited - Flex
Engineering Limited Shareholders'/Investors'
Grievance Committee - Flex Industries
Limited (Chairman) - Flex
Engineering Limited (Chairman) |
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Name : |
Mr. M.G. Gupta |
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Designation : |
Director |
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Date of
Birth/Age : |
02.03.1934 |
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Qualification
: |
I.A.A.S |
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Experience : |
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Date of
Appointment : |
31.01.2002 |
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Directorship in
other Public Limited Companies : |
- FCL
Technologies & Products Limited - B.T.W.
Industries Limited - Flex Foods
Limited - Credit Capital
Assets Management Company Limited |
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Member/Chairman
of Committee of the Board of the Public Limited Companies on which he is Director : |
Audit Committee - Flex Industries
Limited - FCL
Technologies & Products Limited - Flex Foods
Limited - Credit Capital
Assets Management Company Limited (Chairman) Shareholders'/Investors'
Grievance Committee - Flex Industries
Limited - FCL
Technologies & Products Limited (Chairman) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters &
Associates |
21512389 |
43.84 % |
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Other
Directors/Relatives |
41140 |
0.08 % |
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Financial
Institutions, Mutual Funds & Banks |
10099822 |
20.59 % |
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Foreign
Institutional Investors |
342841 |
0.70 % |
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NRIs |
36469 |
0.07 % |
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GDRs |
5465840 |
11.14 % |
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Other Corporate
Bodies |
5912051 |
12.05 % |
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Others (General
Public) |
5262951 |
10.72 % |
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Shares in transit
(Demat) |
397034 |
0.81 % |
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Total |
49070537 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of
flexible packing materials of printed laminated of plastics and paper based
materials. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Printed,
Laminated, Metalised, Co-Extruded, Coated, Embossed/ Hologrammed and Pain
Plastic Films |
MT |
|
111000 |
84683 |
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Polymer Granules
(meant for captive consumption) |
MT |
|
4500 |
12316 |
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Rotogravure
Cylinder and Shims |
Nos. |
|
27000 |
-- |
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Hologrammed
Sticker Sheets |
Sheets in Millions |
|
7.000 |
5.61 |
GENERAL INFORMATION
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No. of Employees : |
Around 1688 |
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Bankers : |
v
Canara
Bank v
Bank
of v
Punjab
National Bank v
The
Jammu & Kashmir Bank Limited, v
Allahabad
Bank v
State
Bank of |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Statutory auditors
·
Vijay
Sehgal & Company Chartered Accountants, Internal auditors
·
Jain
Singhal & Associates Chartered Accountants |
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Associates : |
v
FCL
Technologies & Products Limited v
Flexvin
Limited Company v
Flex
Foods Limited v
Flex International
Limited v
Boeing
Investments (Private) Limited v
Mangalam
Energy Development Company Private Limited v
Anant
Overseas (Private) Limited v
Apoorva
Extrusion (Private) Limited v
Anshikha
Consultants (Private) Limited v
A.R.
Leasing (Private) Limited v
Flex
Securities Limited v
Flex
Fincap Services Limited v
Cinflex
Infotech (Private) Limited v
Fonet
Consultants (Private) Limited v
Flex
Engineering Limited v
Flex
UC (Private) Limited |
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Subsidiaries |
v
Flex
America Inc, v
Flex
Middle v
Flex Europe
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,60,00,000 |
Preference Shares
|
Rs. 100/- |
Rs. 1600.000 millions |
|
5,00,00,000 |
Equity Shares |
Rs. 10/- |
Rs. 500.000 millions |
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Total
|
|
Rs. 2100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4,90,70,537 |
Equity Shares |
Rs. 10/- |
Rs. 490.705 millions |
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Less : |
Amount Unpaid |
|
Rs. 0.446 million |
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Total |
|
Rs. 490.259 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 |
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|
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1] Share Capital |
490.259 |
490.255 |
490.254 |
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2) Share Warrants |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
3472.230 |
3141.585 |
3194.629 |
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4] Profit and
Loss Account |
0.000 |
0.000 |
(306.661) |
NETWORTH
|
3962.489 |
3631.840 |
3378.222 |
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LOAN FUNDS |
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|
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1] Secured Loans |
6135.785 |
5544.086 |
5081.112 |
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2] Unsecured
Loans |
192.565 |
475.462 |
71.299 |
TOTAL
BORROWING
|
6328.350 |
6019.548 |
5152.411 |
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DEFERRED TAX
LIABILITIES |
731.116 |
673.871 |
506.821 |
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TOTAL
|
11021.955 |
10325.259 |
9037.454 |
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APPLICATION OF
FUNDS |
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FIXED ASSETS [Net
Block] |
7751.927 |
7361.359 |
7376.851 |
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Capital
work-in-progress |
113.003 |
181.334 |
102.412 |
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INVESTMENTS |
1264.640 |
1010.511 |
333.797 |
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CURRENT ASSETS,
LOANS & ADVANCES |
|
|
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Inventories |
414.734 |
466.793 |
370.454 |
|
Sundry Debtors |
1868.976 |
1438.581 |
1056.295 |
|
Cash & Bank
Balances |
158.768 |
391.705 |
607.423 |
|
Other Current
Assets |
19.590 |
56.429 |
53.070 |
|
Loans &
Advances |
1023.759 |
847.764 |
411.422 |
|
Total Current Assets |
3485.827 |
3201.272 |
2498.664 |
Less: CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
Current Liabilities
|
1545.132 |
1393.315 |
1297.531 |
Provisions
|
48.310 |
35.902 |
30.111 |
Total Current Liabilities
|
1593.442 |
1429.217 |
1327.642 |
|
Net
Current Assets |
1892.385 |
1772.055 |
1171.022 |
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MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
53.372 |
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|
|
|
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TOTAL
|
11021.955 |
10325.259 |
9037.454 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
10140.258 |
9313.363 |
7066.337 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
439.052 |
307.750 |
720.360 |
Provision for Taxation
|
110.391 |
0.772 |
316.700 |
Profit/(Loss) After Tax
|
328.661 |
306.978 |
403.660 |
|
|
|
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Export Value
|
3161.493 |
2768.273 |
1587.586 |
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Import Value
|
1535.398 |
1063.480 |
1632.759 |
|
|
|
|
|
Total Expenditure
|
9701.206 |
8796.707 |
6345.977 |
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 [Full Year] |
|
|
|
|
|
|
Sales Turnover |
|
|
12716.000 |
|
Other Income |
|
|
271.900 |
|
Total Income |
|
|
12987.900 |
|
Total Expenditure |
|
|
11060.900 |
|
Operating Profit |
|
|
1927.000 |
|
Interests |
|
|
463.300 |
|
Gross Profit |
|
|
1463.700 |
|
Depreciation |
|
|
757.400 |
|
Tax |
|
|
963.000 |
|
Reported PAT |
|
|
446.000 |
|
Dividend (%) |
|
|
20.00 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.63 |
1.65 |
1.73 |
|
Long Term Debt
Equity Ratio |
0.44 |
1.31 |
1.56 |
|
Current Ratio |
0.55 |
0.97 |
1.32 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Asset Ratio |
0.89 |
0.90 |
0.77 |
|
Inventory |
23.66 |
23.50 |
18.85 |
|
Debtors |
6.30 |
7.89 |
7.65 |
|
Interest Cover
Ratio |
2.55 |
3.26 |
4.20 |
|
Operating Profit
Margin (%) |
12.58 |
13.19 |
18.77 |
|
Profit Before
Interest and Tax Margin (%) |
6.89 |
7.56 |
12.62 |
|
Cash Profit
Margin (%) |
8.84 |
8.75 |
11.55 |
|
Adjusted Net
Profit Margin (%) |
3.15 |
3.13 |
5.40 |
|
Return on Capital
Employed (%) |
7.21 |
7.91 |
10.71 |
|
Return on Net
Worth (%) |
8.66 |
8.41 |
11.32 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.222.45/- |
|
Low |
Rs.216.05/- |
LOCAL AGENCY FURTHER INFORMATION
FIXED ASSETS
·
Land
·
Buildings
·
Plant and
Machinery
·
Electrical
Installations
·
Office
Equipments
·
Furniture and
Fixtures
·
Vehicles
HISTORY
Subject was
incorporated on
Subject obtained the
Certification of Commencement of Business on 8th August. By a scheme of amalgamation, the assets and
liabilities of the Flex Laminates Limited and Flex Papers Limited were taken by
the company effective from 1st August.
2215640 equity
shares allotted to erstwhile Flex Laminates Limited (in proportion 82 shares
: 100 shares in Flex Laminates) and 625016 shares allotted to erstwhile Flex
Papers Limited (in proportion 56 shares : 100 shares in Flex Papers Limited)
both consequent to the scheme of amalgamation without payment in cash.
The other companies
in the group are Flex Chemicals, Flex Engineering and Flex Foods. The company manufactures flexible packaging
material at its plants in Noida, Uttar Pradesh and near
The company was
awarded The Best Paper award in the international exposition on recycling of
plastics, held in May 1995 in Davos, for its technology to process mix plastic
waste arising in the course of manufacturing packaging material. The famous
brands like Pan Parag, Baba and Prince use the company’s packaging. The company’s clients also include big
companies like Hindustan Lever, Brooke Bond, Tata Tea, Nestle, etc.
The company is ISO
9002 certified and also a recognised Trading House. In 1995-96, it completed its
expansion-cum-backward integration plan involving the setting up of PET film
line, BOPP film line and laminates facilities.
In 1999-2000, the
company successfully developed 1 Kg. Spout pouch of Taj Mahal Tea and a
specially designed Gillet Gel Big Nose Pouch.
In addition to this the company has successfully developed a high
performance laminate used for packaging of highly hygroscopic products,
extra-clear film having excellent optical properties for holographic
application.
The company’s film
division was awarded ISO –14001 certification.
The company’s paid up equity capital was increased by Rs. 100000000due
to Preferential issues to FI’s/MF’s and further warrants have been issued in favour
of the promoters.
It is also engaged
in the manufacture of Rotogravure Cylinders for various types of rotogravure
printing, Anilox/Coating Rollers for flexo printing and Shims for holographic
embossing.
The main products
of the company comprise of Polyester Films, BOPP Films, Poly Films and various
combinations of packaging laminates.
Line I, II &
III of Film Division are ISO 9002 and ISO 14001 certified.
Management
Policy
·
Proceed
always with ambition and youthfulness
·
Sustain
a working environment that attracts, retains and develops committed share in
the success of the company
·
Respect
sound theory, develop fresh ideas and make the most effective use
·
Enjoy
the work and always brighten the working atmosphere
·
Strive
constantly for a harmonious flow of work
·
Be ever
mindful of the value of research and endeavour
Pioneering the use of :
·
BOPP in
barrier metallising
·
Holograms
in packaging
·
Technology
Development for chemically coated films
·
Producing
various packaging machines of renowned technical capability
The company is
exploring new technologies for the proper processing of post consumer waste.
It is in trade
terms with :
·
Aakash
Plasto Pack Private Limited
·
Anand
Packaging Private Limited
·
Cosmic
Aluminium Wire Private Limited
·
Cranex
Limited
·
Ess Aar
Engineering Private Limited
·
Gajanan
Packers Private Limited
·
Glenview
Plastics Systems Private Limited
·
Heatex
Comp. Tools Private Limited
·
Image
Coding Techn. Private Limited
·
New
Pack Plastics Private Limited
·
Print
Pack Machinery Private Limited
YEAR IN RETROSPECT
During the year under
review, the Company achieved a turnover of Rs.10140.860 Millions including
other income of Rs.681.222 Millions resulting in a growth of about 9.53% over
its turnover of Rs.9258.759 Millions including other income of Rs.376.973 Millions
of the previous financial year ended March, 2005.
The profit after
tax for the year ended March, 2006 at Rs. 328.661 Millions was higher than the
previous financial year ended March, 2005 at Rs.307.750 Millions. During the
Year, the cost of raw materials went up by about 10.49% of previous year.
Impact of increase in raw material prices, increased competition coupled with
pressure in margins of the film business, the working of company was adversely
affected even though the sales volume registered a significant growth over
previous year. The Board of Directors of the Company after carefully
considering the overall financial scenario, regret their inability to recommend
any dividend. The operational performance of the Company has been
comprehensively covered in the Management Discussion and Analysis Report and
the same forms a part of this Directors' Report.
MANAGEMENT DISCUSSION AND
ANALYSIS
FORWARD-LOOKING STATEMENTS
Forward-looking statements are based on certain assumptions and expectations of
future events, the Company cannot guarantee that these assumptions and
expectations are accurate or will be realized. The Company's actual results,
performance or achievements could thus differ materially from those projected
in any such forward-looking statements. The Company assumes no responsibility
to publicly amend, modify or revise any forward looking statements, on the
basis of any subsequent developments, information or events.
Business Review
The main products of the Company comprise of Polyester Films, BOPP Films, Poly
Films and various combinations of these films as laminates. The Company is also
engaged in the manufacture of Rotogravure Cylinders for various types of
rotogravure printing, Anilox/Coating, Rollers for flexo printing and Shims for
holographic embossing. BOPP film is primarily used for applications in
packaging food products such as confectionery, biscuits, bakery, pasta, dried
foods, meats etc. It is used in the form of over-wraps, crimp seal packs and
pouches. BOPP film is also widely used in wrapping cigarette cartons and
tobacco-related products, bags for ready-made garments, adhesive tapes and
print lamination.
The film has high
gloss and transparency and provides a strong moisture barrier, making it
suitable for packing many types of consumer products.
The Company in the
BOPP film business with its highly cost effective and functionally efficient
product is growing at an impressive rate annually. The technologically superior
and highly dependable BOPP films produced by the company in its
state-of-the-art ISO 9001-2000 certified plants can be structured in upto three
layers and tailored for almost any machining requirements and is capable of
meeting both Rotogravure and Flexographic printing standards. The product can
be used in a wide range of industry/business such as packaging, industrial
coating, holography, metalizing, printing & lamination etc.
BOPET film is used
in a wide range of applications. Its barrier properties, high tensile and
dielectric strength, thermal and chemical stability and toughness make it
suitable for a multitude of applications. The film provides a strong barrier to
aroma retention and odour, which makes it especially suitable for use in food
packaging, electric insulation, office supplies, graphic arts, imaging and
industrial applications. Its dimensional stability and high tensile strength
makes this film suitable for critical applications such as audio, video and
other magnetic tape applications. BOPET film, one of the initial product of the
company, has not only succeeded in retaining its market shares but continues to
expand its markets in today's dynamic and rapidly changing packaging scenario
mainly because of dependable quality. Produced in state of the art ISO
9001-2000 certified plants in different range of microns, the BOPET films have
the capacity to sustain the high fidelity graphics and to meet the requirements
of both Rotogravure as well as Flexographic printing standards.
The
Company has an edge over its competitors because of the fact that it has the
facility to provide both side corona treated BOPP film required for good bond
strength. The Company produces more than 25 types of films like BOPP film,
Polyester film, CPP film, Metallised film and Specialty film etc., thus
following the concept of one stop shopping at reasonable price - a definite
edge over the competitors.
Products
manufactured in the packaging business are laminates made with various
combinations of Polyester, Metallised Polyester, Aluminium Foil, paper, BOPP,
Poly etc. These laminates are supplied in roll form and also in preformed
pouches. These jobs are generally printed in multicolour designs.
With innovative solutions, the Company has cultivated the use of flexible packaging as cost effective and viable primary packs rather than only as refill packs. It offers finished packaging materials for packaging a wide variety of products. The Company's emphasis on product innovations, quality enhancement together with competitive cost has paid rich dividend in terms of significant growth in sales. It has successfully developed several new packaging solutions for various applications suitable for Food industry, the Bakery and Confectionery Industry, Beverage Industry and the Personal Care Products Industry.
The Company also produces Rotogravure
Cylinders for various types of rotogravure printing, Anilox/Coating Rollers
forflexo printing and Shims for holographic embossing. The Company is one of
the leading manufacturers of rotogravure cylinders in the country and enjoys a
large market shares among the organized and leading cylinder manufacturers in
The Company ended
the financial year 2005-2006 with a turnover (net) of Rs.10140.860 Millions
including other income of Rs.681.222 Millions as against turnover of Rs.9258.759
Millions including other income of Rs.376.973 Millions in the previous
financial year, registering a growth of approximately 9.53%. The profit after
tax for the year ended 31st March 2006 was Rs.328.661 Millions as against
Rs.307.750 Millions of the previous financial year.
Directors are pleased to inform you that the
Company was awarded PFFCA STAR-2005 (Paper Film and Foil Converters
Association) for recognition of excellence for Smart Pack-McDowell No. 1,
Soffola Gold, Press-n-Hot Chicken Bags and Laser Pouch.
The Company's product, "MIRACLE GROW" package has been honoured in
the FPA Awards (Flexible Packaging Association,
Future Outlook
The Flexible
Packaging Industry has a very crucial role to play in the life style of
ordinary people and thus has a bright future. Every broad sector that consumes
flexible packaging has its own unique and dynamic set of requirements. The
future growth of Flexible packaging material Business is quite good in India
and key drivers for its growth are: • Increasing recognition of quality of
Indian BOPET & BOPP film and laminate products.
• Entry of Indian
players into value added products.
• Cost
competitiveness of Indian BOPET & BOPP film and laminate manufacturers.
• Availability of
the world class film and laminate production technologies in
• Growth in
consumption of western-style snack products, confectionery and baked goods,
together with increasing hygiene consciousness amongst the population,
resulting in even traditional food manufacturers using flexible packaging.
• Increase in new BOPP film applications,
such as labels and ink jet and laser printable films.
As capacities for production of BOPP and
BOPET films in
Keeping in view the
worldwide demand and the growth potential of flexible packaging industry and to
facilitate future growth, the Company has expanded its business by putting up
additional manufacturing facilities at Jebel Ali Free Zone, Dubai, UAE through
its Wholly Owned Subsidiary Company, i.e. Flex Middle East FZE. The Management
has decided to put up another line at
COMPANY NAME CHANGED:
The name of the
company has been changed from Flex Industries Limited to UFLEX LIMITED as
approved by the Registrar of Companies, NCT of Delhi and Haryana with effect
from 19.03.2007.
·
Pursuant to the order passed by the Hon’ble High
Court of Delhi at New Delhi vide its Order dated 06.10.2006vread with Order
dated 19.11.2006 and effective dated 04.12.2006, between Flex Securities
Limited, Flex Engineering Limited, FCL Technologies and Products Limited (Transferee
Companies) and Flex Industries Limited ( Transferee Company ), now UFLEX
LIMITED
Profile
They would like
to extend their sincere gratitude to all their business partners and customers
at home and in over sixty countries for their unending support.
They are thankful
to continued belief and faith in them, in their products and in their services.
At Flex it is always their endeavor to serve customer to best of their
abilities.
The world demand of plastic films is rising and is expected to grow 2.8% annually
to 5.6 billion pounds by 2005. Plastic films already account for 70% of the
global demand among all flexible packaging materials and will continue to post
gains at the expense of paper and aluminium foil.
The Flex Industries Film Division is well equipped with plants that have
unparalleled manufacturing capability and is all set to face enthusiastically
the ever increasing challenges of the future. With emphasis on advancement
through technological development, innovation, commitment to safety and
environment, high ethical standards and integrity, Flex is expanding and
growing rapidly.
People are their
greatest asset and they employ highly skilled, experienced and talented
individuals, dedicated and motivated to the task of producing a product to
match the every need, every requirement.
Let us put their
experience to help customer with complete flexible packaging solutions.
Flex Industries Limited (Film
Division), spread across an area of over 95,000 sq. meters, located in the
fastest growing places, very close to the capital city of India, New Delhi, is
one of the leaders in the Plastic Film Industry in the Asia Pacific region.
With a strong
foundation, total commitment to exceptional standards of performance and
productivity, dedication to excellence, willingness to embrace new ideas,
learning continuously and working together effectively, they are what it takes
to be
As part of the
Flex Group, they have over twenty years of experience and know-how in polymer
technology, a record of success and innovation and are a publicly traded
company in the DSE since 1989, manufacturing and supplying products and
delivering services that are world class, world wide.
With an ISO
9001-2000 (revised) and ISO 14001 certification, they understand their commitment to the environment and society and
are dedicated to supplying quality products and services that are acceptable
across the entire globe.
Flex Industries
Limited employs over 3,000 personnel, enjoys the support of over 28,000
shareholders and has grown at the rate of 12% over last year.
Continuing to
develop their international perspective
they are a major player in several dynamic and rapidly changing global markets
with their market share having expanded
to over 65 countries in several regions.
At Flex they are dedicated to make and supply superior products that deliver real benefit and performance improvements to their customers and they go “that extra mile” to service them. They understand the value of time of their clients and are therefore committed to deliver on schedule in order to smoothen their business operations. Over the past few decades of their existence it has been their continuous endeavor to supply complete solutions that bring a smile on the face of their customers and associates because for us it is when they smile is when they smile!
Manufacturing Facilities
In their
state-of-the-art, twenty-four hour, manufacturing facility, they produce a vast
variety of Plastic films suitable for a wide range of applications. All
their plants are imported from Europe
and the
They have three
production lines for manufacturing Biaxially Oriented Polyethylene Terapthalate
Films (BOPET) with a capacity of over 54,000 Metric Tonnes per annum. Sold
under the brand name of FLEXPET™ and available in the thickness range of 10 to
50 microns, these films offer excellent machinability, dimensional stability,
clarity, moisture and gas barrier, high tensile strength, outstanding
durability, runnability, printability, surface smoothness and resistance to
tear and abrasion. FLEXPET™ is suitable for various applications like printing
and packaging, thermal lamination, metallising, hot stamping, electrical
insulation, holography, synthetic yarn etc.
Biaxially
Oriented Polypropylene (BOPP) film line has an annual production capacity in
excess of 18,000 Metric Tonnes and produces film of high strength, dimensional
stability and stiffness, with excellent barrier to moisture and gas and is heat
sealable on one or both sides. Sold under the brand name of FLEXOPP™ these
films find applications in print lamination, reverse print & lamination,
pressure sensitive adhesive tapes, release applications, decorative
applications, reams and sheet for manual wrapping, bag application, print and pouching,
cable wrapping, vacuum metallising base film, overwrap, printing and
lamination.
Starting with
the Polyester and Polypropylene film lines, their plant expansion has never ceased. Increasing
production capacity to meet the demand for film in the domestic and
international markets, Flex put up two state-of-the-art, high performance,
Metallisers recently with a total capacity of 11,000 Metric Tonnes per annum,
producing barrier metallised films, sold under the brand name of
FLEXBARRIERMET™, that can be used for converting, packing, laminating,
insulation ducting, electronic goods packaging, metallic yarns and in other
decorative applications. Engineered to manufacture a high degree of barrier
metallised films with optical density ranging from 0.5 to 3, this metalliser
offers excellent barrier properties to substrates like polyester film (9-50
microns), BOPP film (10-80 microns), CPP films (18-40 microns), LDPE films
(25-50 microns), Nylon (12-50 microns) which can be barrier metallised upto a
width of 2,450mm.
Expanding the
area of business and diversifying the line of products, Flex has also set up a
five layered Cast Polypropylene film line with a capacity of 6,000 Metric
Tonnes per annum. Designed to meet the functional requirements of the user,
these films offer better heat seal strength and opticals, excellent moisture
barrier, metallisation and twistability and higher tear strength, weld strength
and yield as compared to many other films. These CPP films are available in the
thickness range of 20-150 microns with a maximum width of 2,400mm and corona
treatment on either one or both sides. The wide range of applications for these
films include lamination and metallised lamination film for packaging, bakery
and confectionary wraps, biscuits and cake packaging, textile bags, twist and
metallised twist wraps, anti fog film for fruit, vegetable and bulk flower
wrapping, over wrap of toilet papers, napkins and health care products etc.
Thus they are
continually updating their “World Class
Manufacturing” capabilities by investing in new equipment, technology and
research and development.
Subsidiary
Flex America Inc., located in North
Carolina, USA, is a fully owned subsidiary of Flex Industries Limited.
Set up in June
2001 to cater to their esteemed customers
in the
Selling a
variety of Polyester, BOPP, CPP and Metallised Films to a huge customer base,
Flex America Inc. is making a name for itself in the plastic film industry in
the
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.57 |
|
|
1 |
Rs.80.97 |
|
Euro |
1 |
Rs.55.19 |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
|
53 |
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 |
|