MIRA INFORM REPORT

 

 

Report Date :

20.10.2007

 

IDENTIFICATION DETAILS

 

Name :

LG POLYMERS PRIVATE LIMITED

 

 

Registered Office :

R. R. Venkatapuram, Visakhapatnam, - 530029, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

10.12.1996

 

 

Com. Reg. No.:

01-25917

 

 

CIN No.:

[Company Identification No.]

U25203AP1996PTC025917

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

VPNL00060E

 

 

Legal Form :

Private  limited liability company

 

 

Line of Business :

Manufacturing of polystyrene and expandable polystyrene.

 

 

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 :

 

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of LG Group, well known Korean giant. Available information indicates high financial responsibility of the company. Trade relations are fair. Financial position  is satisfactory. The company is doing  well. It’s payments are correct and as per commitments.

 

The company can be considered good for any normal business dealings.

 

 

LOCATIONS

 

Registered Office / Factory :

R. R. Venkatapuram, Visakhapatna, - 530029, Andhra Pradesh, India

Tel. No.:

91-891-2520455 to 58/2520018

Fax No.:

91-891-2520338/2520528

E-Mail :

info@lgpi.co.in

Website :

http://www.lgpi.co.in

Location :

Owned

 

 

Corporate Office :

Oberoi Garden Estates, 2nd floor, A Wing, Off Saki Vihar Road, Chandivali, Sakinaka, Andheri (East), Mumbai - 400072, Maharashtra

 

 

Branches :

1001 Vikram Tower, 16 Rajendra Place, New Delhi – 110 008

Tel. No. 91-11-25726918/25728002/25747295

Fax No. 91-11-25755730

 

Mumbai, Bangalore, Kolkatta and Chennai

Location :

Owned

 

 

Overseas Branch :

AB-3, Safdarjung Enclave, New Delhi

Tel. No.:

91-11-26714001

Fax No.  :

91-11-26713646

 

 

 

DIRECTORS

 

Name :

Mr. Nam Nyeung Lee

Designation :

Director

Address :

20, Yoido-Dong, Youngdungpo-gu Seoul, Korea – 150721

Date of Birth/Age :

29.05.1953

Date of Appointment :

20.01.2006

 

 

Name :

Mr. Do Hyun Nam

Designation :

Director

Address :

20, Yoido-Dong, Youngdungpo-gu Seoul, Korea – 150721

Date of Appointment :

20.01.2006

 

 

Name :

Mr. Jong Man Oh

Designation :

Director

Address :

20, Yoido-Dong, Youngdungpo-gu Seoul, Korea – 150721

Date of Appointment :

20.01.2006

 

 

 

Name :

Mr. Byung Gu Kwag

Designation :

Director

Address :

20, Yoido-Dong, Youngdungpo-gu Seoul, Korea – 150721

Date of Appointment :

20.01.2006

 

 

Name :

Mr. Yeon Jin Huh

Designation :

Director

Address :

Flat No. 2502, A & B Glen Croft Hiranandani Gardens, Powai, Mumbai 400 078, Maharashtra, India

Date of Birth/Age :

12.05.1959

Date of Appointment :

07.01.2002

 

 

Name :

Mr. Kwang Sik Oh

Designation :

Director

Address :

Flat No. 5, Deepanjali Apartments, near circuit house, Visakhapatnam, - 530003,  Andhra Pradesh, India

Date of Birth/Age :

18.10.1963

Date of Appointment :

14.01.2003

 

 

Name :

Mr. Prasad Babu Mootha

Designation :

Director

Address :

Sai Sadan Apartments, Door No. 47, Dwarka Nagar, Visakhapatnam, - 530016, Andhra Pradesh, India

Date of Birth/Age :

15.06.1949

Date of Appointment :

01.04.2004

 

 

Name :

Mr. Sisira Kumar Mishra

Designation :

Director

Address :

Flat No. 2, Block 8, Sri Lakshmi Towers, Visakhapatnam, - 530029, Andhra Pradesh, India

Date of Birth/Age :

06.08.1978

Date of Appointment :

09.09.2005

 

 

Name :

Mr. Ok Dong Son

Designation :

Director

Address :

Colg Twin Towers, 16, F20, Yoido Dong, Youndoungpo Gu, Seoul, Korea 150721

Date of Birth/Age :

05.09.1958

Date of Appointment :

27.02.2004

 

 

Name :

Mr. Hyung Geun Park

Designation :

Director

Address :

Colg Twin Towers, 16, F20, Yoido Dong, Youndoungpo Gu, Seoul, Korea 150721

Date of Birth/Age :

27.09.1966

Date of Appointment :

27.02.2004

 

 

Name :

Mr. Gopala  Rao Pitala

Designation :

Director

Address :

11-4-5, 2, Nawroji Road, Maharanipeta, Visakhapatnam, - 530002, Andhra Pradesh, India

Date of Birth/Age :

16.06.1946

Date of Appointment :

01.04.2001

 

 

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

LG Chemical India Private Limited

 

126330000

Prasad Babu Mootha

 

1

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of polystyrene and expandable polystyrene.

 

 

Products :

Polysterene, Expandable Polysterene.

 

 

 

PRODUCTION STATUS

 

Particulars

Unit

Installed Capacity

Actual Production

Ethyl alcohol

KL

10000

0

Polystyrene

MT

100000

61567

Expandable

MT

15000

12785

 

 

GENERAL INFORMATION

 

No. of Employees :

300

 

 

Bankers :

Ř       Bank of America

Ř       ICICI Bank

Ř       SCB

Ř       Chohugh Bank

Ř       Bank Of India

Ř       Hongkong Bank

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

V. V. Ram Mohan

Chartered Accountants

Address :

10-50-19, Soudamani, Siripuram Junction, Visakhapatnam 530003, Andhra Pradesh

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

130000000

Equity Shares

Rs. 10 each

Rs. 1300.000 Millions

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

126330001

Equity Shares

Rs. 10 each

Rs. 1263.300 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

1263.300

1263.300

1263.300

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

460.138

546.100

521.590

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1723.438

1809.400

1784.890

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

5.175

TOTAL BORROWING

0.000

0.000

5.175

DEFERRED TAX LIABILITIES

12.438

13.722

0.000

 

 

 

 

TOTAL

1735.876

1823.122

1790.065

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

670.698

724.985

763.101

Capital work-in-progress

11.409

3.063

1.105

 

 

 

 

INVESTMENT

4.120

94.215

4.121

DEFERREX TAX ASSETS

29.511

8.920

6.248

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1171.629

988.308

436.213

 

Sundry Debtors
696.513

791.345

724.983

 

Cash & Bank Balances
336.749

273.289

315.584

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
140.733

86.230

173.035

Total Current Assets
2345.624

2139.172

1649.815

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
1170.788

834.322

565.927

 

Provisions
156.196

318.774

78.627

Total Current Liabilities
1326.984

1153.096

644.554

Net Current Assets
1018.640

986.076

1005.261

 

 

 

 

MISCELLANEOUS EXPENSES

1.498

5.863

10.229

 

 

 

 

TOTAL

1735.876

1823.122

1790.065

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004
Sales Turnover [including other income]

 

 

4914.302
 

 

 

 
Profit/(Loss) Before Tax

 

 

205.420
Provision for Taxation

 

 

72.131
Profit/(Loss) After Tax

 

 

133.289
 

 

 

 
Export Value

 

 

314.876
 

 

 

 
Import Value

 

 

3604.530
 

 

 

 
Total Expenditure

 

 

4708.882

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004
PAT / Total Income
(%)
 

 
2.712
 
 
 

 
 
Net Profit Margin

(PBT/Sales)

(%)
 

 
7.147
 

 
 

 
 
Return on Total Assets

(PBT/Total Assets}

(%)
 

 
8.473
 

 
 

 
 
Return on Investment (ROI)

(PBT/Networth)

 
 

 
0.115
 

 
 

 
 
Debt Equity Ratio

(Total Liability/Networth)

 
0.67

0.46
0.364
 

 
 

 
 
Current Ratio

(Current Asset/Current Liability)

 
1.76

1.85
2.559

 

 

LOCAL AGENCY FURTHER INFORMATION

 

To carry on in all its braches the business of manufacturer, developing, processing, compounding, refining, buying selling, importing, exporting, dealing, manufacturing, compounding, produce and every way deal in chemical of every kin , chemical material, substances, products and derivatives including without limitation., PVC resins, satiric resins, polyethylene, engineering plastics, naphtha cracking and its derivatives, organic chemicals, specialty chemicals, chemical materials, cosmetics of every kinds and to engage in the separation or reduction and treatment of solids liquids and gases into their constituents.

 

Turnover

Polystyrene            :- Rs. 3361.345 millions

Exp Polystyrene     :- Rs. 909.884 millions

Styrene                  :- Rs. 659.843 millions

ABS                       :- Rs. 6.861 millions

SAN                       :- Rs.  15.448 millions

Total                   :- Rs. 4953.383 millions

 

 

AS PER WEBSITE

 

History

The company was incorporated in 1961 as "Hindustan Polymers" for manufacturing Styrene monomer, Polystyrene and its Co-polymers at Visakhapatnam, India. Merged with Mc Dowell & Co. Ltd. of UB Group in 1978.


LG Chemical considered India as an important market and in it's aggressive global growth plan identified Hindustan Polymers as a suitable company for entering Indian market through 100% takeover. Taken over by LG Chem (South Korea), Hindustan Polymers was renamed as LG Polymers India Private Limited (LGPI) in July, 1997.

LG Chemical has a very strong presence in Styrenics business in South Korea and have plans to establish an equally strong presence in Indian market for Styrenics by adding ABS and SAN in it's current product range of PS and EPS. Presently LGPI is one of the leading manufacturers of Polystyrene (Brand name: LGSTRENE) and Expandable Polystyrene (Brand name: LGEXPOL) in India. LGPI in true LG tradition is committed to excellence in product quality, service and enriching customers through added value.

 

PS, HYPOL & EPS Products are Manufactured and Marketed by LGPI

 

ABS & SAN (from LGChem) and Styrene are Imported & Marketed by LGPI

 

 

Form 8

Bankers Charges Report as per Registry

 

Name of the company

LG POLYMERS PRIVATE LIMITED

Presented By

STANDARD CHARTERED BANK – NEW DELHI

1) Date and description of instrument creating the change

Letter of Hypothecation [stocks] and [Book Debts] dated 30.10.2001 registered on 27.11.2001.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 603.700 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All stock in trade both present and future consisting of Raw material finished goods, goods in process of manufacturing and other merchandise whatsoever and all present and future book debts, outstanding moneys, receivables, claims and bills etc. shall be hypothecated to the bank by way of first charge on pari passu basis.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest as may be determined by the bank from time to time.

5) Name and Address and description of the person entitled to the charge.

Standard Chartered Bank

Sansad Marg, New Delhi.

6) Date  and brief description of instrument modifying the charge

No instrument was executed banks letter dated 8.6.2004

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

There being no change in the overall limit of Rs. 603.000 Millions, but the company has been granted a Buyers Credit Limit of Rs. 300.000 Millions within overall limit of Rs. 600.000 Millions.  Other terms and conditions remaining the same.

 

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 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. 39.79

UK Pound

1

Rs. 81.41

Euro

1

Rs. 56.87

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

52

 

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.

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions