MIRA INFORM REPORT

 

 

Report Date :

31.08.2007

 

IDENTIFICATION DETAILS

 

Name :

PBM POLYTEX LIMITED

 

 

Formerly Known as:

THE HOUSE OF PATODIA

 

 

Registered Office :

Opposite Station, Petlad, Anand – 388 450, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

02.03.1921

 

 

Com. Reg. No.:

04-495

 

 

CIN No.:

[Company Identification No.]

U17110GJ1921PLC000495

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BRDP01287G

 

 

PAN No.:

[Permanent Account No.]

AAACP9271H

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer, Exporter and Supplier of Cotton Yarns, Raw Cotton-Shankar-6 and Organic Cotton Garments, etc. 

 

 

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 1900000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Trade relations are fair. General financial position is satisfactory. Payments are reported as usually correct and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

Opposite Station, Petlad, Anand – 388 450, Gujarat, India 

Tel. No.:

91-2697-224001/ 224003

Fax No.:

91-2697-224009

E-Mail :

pbmmills@patodiagroup.com

Website :

http://www.pbmpolytex.com

 

 

Head Office :

7 Shambhunath Mullick Lane, Kolkata – 700 007, West Bengal, India 

Tel. No.:

91-33-22687024/2086

Fax No.:

91-33-22684096

 

 

Corporate Office :

8th Floor, Ramakrishna Chambers, Productivity Road, Alkapuri, Baroda – 390 007, Gujarat, India

Tel. No.:

91-265-2333586, 2333587, 2334841

Fax No.:

91-265-2338979

E-Mail :

info@patodiagroup.com

 

 

DIRECTORS

 

Name :

Mr. Krishan Kumar Patodia

Designation :

Chairman

 

 

Name :

Mr. Gopal Patodia 

Designation :

Managing Director

 

 

Name :

Mr. Murarilal Patodia

Designation :

Managing Director

 

 

Name :

Mr. Hariprasad Siotia

Designation :

Director

 

 

Name :

Mr. Mohan Kumar Patodia 

Designation :

Director

 

 

Name :

Mr. Brijbhushanlal Kabra

Designation :

Director

 

 

Name :

Mr. Dharam Paul 

Designation :

Director

 

 

Name :

Mr. Jugalkishore M Todi

Designation :

Additional Director

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Supplier of Cotton Yarns, Raw Cotton-Shankar-6 and Organic Cotton Garments, etc. 

 

 

Products :
  • Raw cotton
  • Silk made-ups and yarn
  • Organic cotton garments
  • Cotton yarn (4 mills with over 150,000 spindle capacity - exports worldwide)
  • Organic cotton kids and infant garments like kids Pyjamas, polo pique T-shirts and round neck T-shirts.

 

 

Exports:

 

Countries:

China, Bangladesh, Pakistan, etc.

 

 

GENERAL INFORMATION

 

No. of Employees :

About 1400

 

 

Bankers :

Not Available

 

 

Facilities :

-

 

 

 

Banking Relations :

-

 

 

Auditors :

 

Name :

Mahendra N Shah and Company

Chartered Accountants

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

100000000

Equity Shares

Rs.10.00 each

Rs.1000.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

8130000

Equity Shares

Rs.10.00 each

Rs. 81.300 millions

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

81.300

81.300

81.300

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

405.000

348.700

319.600

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

486.300

430.000

400.900

LOAN FUNDS

 

 

 

1] Secured Loans

468.000

504.300

427.400

2] Unsecured Loans

4.000

4.000

4.000

TOTAL BORROWING

472.000

508.300

431.400

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

958.300

938.300

832.300

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

679.700

603.100

646.500

Capital work-in-progress

2.200

1.100

2.600

 

 

 

 

INVESTMENT

29.300

29.300

29.300

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
354.300

397.200

259.900

 

Sundry Debtors
69.200

95.800

63.400

 

Cash & Bank Balances
11.500

14.200

11.700

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
68.300

45.000

30.100

Total Current Assets
503.300

 552.200

365.100

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
226.100

222.100

186.200

 

Provisions
30.100

25.300

25.000

Total Current Liabilities
256.200

247.400

211.200

Net Current Assets
247.100

304.800

153.900

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

958.300

938.300

832.300

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

1277.700

1155.600

1072.300

Other Income

16.300

12.500

10.500

Stock Adjustments

10.000

14.600

(34.100)

Total Income

1304.000

1182.700

1048.700

 

 

 

 

Profit/(Loss) Before Tax

79.100

62.200

29.700

Provision for Taxation

14.600

23.600

10.300

Profit/(Loss) After Tax

64.500

38.600

19.400

 

 

 

 

Expenditures :

 

 

 

 

Raw Materials

661.400

589.000

587.600

 

Excise Duty

7.500

9.900

20.800

 

Power and Fuel Cost

184.000

170.900

118.700

 

Other Manufacturing Expenses

94.700

88.600

56.200

 

Employee Cost

109.900

98.800

89.600

 

Selling and Administration Expenses

78.000

66.400

54.400

 

Miscellaneous Expenses

0.600

3.300

1.400

 

Interest and Financial Charges

33.500

32.900

38.900

 

Depreciation

55.300

60.700

51.400

Total Expenditure

1224.900

1120.500

1019.000

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2007

(1st Quarter)

Sales Turnover

 

 

300.400

Other Income

 

 

7.900

Total Income

 

 

308.300

Total Expenditure

 

 

278.700

Operating Profit

 

 

29.600

Interest

 

 

9.300

Gross Profit

 

 

20.300

Depreciation

 

 

18.700

Tax

 

 

0.600

Reported PAT

 

 

1.000

 

 

200706 1st Quarter

 

Notes Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (13.20) million Consumption of Raw Materials Rs 168.40 million Staff Cost Rs 27.30 million Power & Fuel Rs 49.00 million Other Expenditure Rs 47.20 million EPS is Basic Status of Investor Complaints for the quarter ended June 30, 2007 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at the Meeting held on July 31, 2007. 2. Two Windmills set up by the company in Gujarat have started generation of electricity from middle of February 2007. The results of the current quarter include net loss of Windmill Units amounting Rs 4.20 million (after providing for depreciation of Rs 4.80 million). Other two windmills are under commissioning and the electricity generation at the said windmills is expected to start by end of August 2007. 3. The strengthening of rupee against US Dollar, Increase in raw material and furnace oil prices and steep rise in price index resulting in higher DA are the main reasons for lower profitability in the current quarter. 4. The company's main business is manufacturing of cotton yarn and as such segment reporting is not required. 5. The Limited Review of the financial results for the quarter ended June 30, 2007 has been carried out by the Statutory Auditors.

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

Debt-Equity Ratio

 
1.07

1.13

1.26

Long Term Debt-Equity Ratio

 
0.65

0.73

0.84

Current Ratio

 
1.18

1.16

1.08

TURNOVER RATIOS

 
 

 

 

Fixed Assets

 
0.99

0.93

0.88

Inventory

 
3.40

3.52

3.09

Debtors

 
15.49

14.52

19.39

Interest Cover Ratio

 
3.36

2.89

1.76

Operating Profit Margin

(%)
13.14

13.48

11.19

Profit Before Interest And Tax Margin

(%)
8.81

8.23

6.40

Cash Profit Margin

(%)
9.38

8.59

6.60

Adjusted Net Profit Margin

(%)
5.05

3.34

1.81

Return On Capital Employed

(%)
11.87

10.75

7.74

Return On Net Worth

(%)
14.08

9.30

4.95

 

STOCK PRICES

 

Face Value

Rs. 10.00

High

Rs. 25.75

Low

Rs. 25.05

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Website details attached:

 

Company Profile

 

Subject was incorporated on the 24th November 1919 under the name and style of 'The Petlad Bulakhidas Mills Co. Ltd.'. The management of the Company was taken over by 'The House of Patodia's in 1978 and the name of the Company were changed to PBM POLYTEX LTD. Subsequent to the takeover, extensive modernization of the mills was effected. Company's factory building was repaired and additional buildings constructed. Plant & Machinery were gradually replaced with latest machinery through fifteen major modernization programs during the past twenty years.

 

The Company has installed indigenous as well as imported machinery sourced from world class manufacturers like Lakshmi Machine Works Ltd. Coimbatore, Luwa Switzerland, Vouk Italy, Schlafhorst Germany, Zellweger Uster Switzerland and Murata Japan

 

The Company has also diversified into texturising and twisting of filament yarn and set up texturising and twisting capacity division at Silvassa in the Union Territory of Dadra and Nagar Haveli.


In our quest for perfection and also to meet the ever-increasing demands we commissioned our second plant in 1992, PBM Unit # 2, i.e. BLP Super Spinners. The company's plant, spread out over sprawling 20 acres at the Boregaon in Chhindwara district in Madhya Pradesh near Nagpur, is one of the most sophisticated in its class in the country.

 

Dedication as the cornerstone of the group's policy and quality as its perpetual goal, the future is bright indeed for PBM and BLP.

 

Awards and Citations

 

They have received several national awards as a token of appreciation for their commitment towards quality and excellence, from the Government of India, State Governments, export promotion councils, as well as other reputed state and private bodies. Some of the awards are listed below:

 

Texprocil Award: They have been receiving this award almost every year since 1988 for best national export performance

 

Golden House Status: The trading company of the group has been felicitated to “Golden House” status for outstanding and consistent export performance.

 

Quality

 

Quality is the most important aspect of each of the products manufactured and exported by us. They closely monitor each stage of the manufacturing process. The quality inspection is done by their team of experienced and proficient technical staff. The comprehensive quality control policy conforms to national and international standards keeping us far ahead of competitors.


Infrastructure

 

They have a sound infrastructural set-up well equipped with all the facilities required for exporting and manufacturing of world class products. They have a proficient team of designers, sales representatives and professionals who have the technical expertise and in-depth knowledge of market requirements. The spacious warehouse, wide distribution system and excellent transport facilities ensure the customers of safe, smooth and prompt delivery of products.

 

 

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. 40.88

UK Pound

1

Rs. 82.58

Euro

1

Rs. 55.79

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--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

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

46

 

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