LIMITED%20-%20HKA%2020-Sep-2007_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
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Report Date : |
20.09.2007 |
IDENTIFICATION DETAILS
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Name : |
POLYLINK POLYMERS ( |
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Registered Office : |
Block
No. 229-230, Village – Valthera, Taluka – Dholka, Dist. – Ahmedabad– 387 810, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.01.1993 |
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Com. Reg. No.: |
032905 |
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CIN No.: [Company
Identification No.] |
L17299GJ1993PLC032905 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMP00777A |
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Legal Form : |
A
Public Limited Liability company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers
of XLPE, MDPE and other plastic compounds like Silane Grafted Polymeric
Compound, Density Polyethylene and Propylene Copolymers. |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Maximum Credit Limit : |
USD 140028 |
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Status : |
Poor |
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Payment Behaviour : |
Slow but delayed |
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Litigation : |
Unknown |
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Comments : |
Financial
position of the company is moderate. The company has substantial accumulated
losses. Payments are slow and delayed due to liquidity problems. The company can
be considered for any business dealings on safe and secured trade terms and
conditions only. |
LOCATIONS
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Registered
Office / Works : |
229-230, Village – Valthera, Taluka – Dholka, Dist. – Ahmedabad– 387 810, Gujarat, |
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Tel. No.: |
91-2714-247456 / 395810 / 395832 |
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Fax No.: |
91-2714-247454 |
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E-Mail : |
prm@polylinkpolymers.com /
goyal@polylinkpolymers.com |
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Website : |
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Administrative Office / Head
Office : |
506, |
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Tel. No.: |
91-79 – 26565200 / 26427800 / 30918115 / 30953932 |
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Fax No.: |
91-79 – 26421864 |
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E-Mail : |
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Branches : |
Mumbai Kolkata Tel No. : 91– 33– 22823585 / 22823586
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DIRECTORS
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Name : |
Mr. U. S. Bhartia |
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Designation : |
Chairman (Non-Executive) |
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Name : |
Mr. J. S. Baijal |
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Designation : |
Director (Independent) |
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Name : |
Mr. Ajay Bhargava |
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Designation : |
Director (Independent) |
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Name : |
Mr. K. M. Lal |
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Designation : |
Chairman and Director (Independent) |
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Name : |
Mr. R. P. Goyal |
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Designation : |
Director (Executive) |
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Qualification : |
B.Com., F.C.A. |
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Date of Appointment : |
01.07.1994 |
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Previous
Employment : |
Commercial Manager – Hindustan Wires Limited |
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Name : |
Mr. P. R. Mukherjee |
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Designation : |
Director (Executive) |
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Qualification
: |
M.Sc. Ph.D. |
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Date of
Appointment : |
01.12.1994 |
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Previous
Employment : |
General Manager (Operation) - Incab Industries Limited |
KEY EXECUTIVES
|
Name : |
Mr. Hitesh Marthak |
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Designation : |
Company Secretary
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters & Associates Share holding |
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1 . Indian Promoters & Associates |
2653200 |
17.11 |
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2. Persons Acting inConcert |
8009100 |
51.63 |
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Financial
Institutions / Banks |
535500 |
3.45 |
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Mutual Funds and
Others |
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Resident
Individuals and Corporate |
4309800 |
27.80 |
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NRI’s / OCB |
2900 |
0.018 |
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Total
|
15510500 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
of XLPE, MDPE and other plastic compounds like Silane Grafted Polymeric
Compound, Density Polyethylene and Propylene Copolymers |
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Products : |
v Compounds for Power Cables v Compounds for Telecom Cables v
Polypropylene Filled Compounds v
PBT Reinforced Compounds v
Nylon Filled Compounds v
Fire Retardant Thermoplastic Compounds v
Additive Master Batches |
GENERAL INFORMATION
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No. of Employees : |
200 |
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Bankers : |
UTI Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K. N. Gutgutia &Company Chartered
Accountable |
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Address : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
15510500 |
Equity Shares |
Rs.10/- each |
Rs.155.105
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 [9 Months] |
30.06.2005 [15 Months] |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
155.105 |
155.105 |
130.105 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2.500 |
2.500 |
2.500 |
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4] (Accumulated Losses) |
(122.598) |
[111.682] |
[120.861] |
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NETWORTH |
35.007 |
45.923 |
11.744 |
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LOAN FUNDS |
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1] Secured Loans |
211.680 |
188.143 |
201.368 |
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2] Unsecured Loans |
54.359 |
33.964 |
11.453 |
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TOTAL BORROWING |
266.039 |
222.107 |
212.821 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
301.046 |
268.030 |
224.565 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
167.981 |
176.621 |
183.773 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
48.120
|
34.810
|
36.259 |
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Sundry Debtors |
104.044
|
84.184
|
32.706 |
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Cash & Bank Balances |
3.658
|
3.218
|
2.551 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
13.486
|
6.700
|
5.408 |
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Total
Current Assets |
169.308
|
128.912 |
76.924 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
33.115
|
34.350
|
32.821 |
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Provisions |
3.128
|
3.153
|
3.311 |
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Total
Current Liabilities |
36.243
|
37.503
|
36.132 |
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Net Current Assets |
133.065
|
91.409
|
40.792 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
301.046 |
268.030 |
224.565 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 [9 Months] |
30.06.2005 [15 Months] |
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Sales Turnover |
534.169 |
|
346.000 |
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Other Income |
6.208 |
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Total Income |
540.377 |
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Profit/(Loss) Before Tax |
(10.601) |
9.405 |
106.000 |
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Provision for Taxation |
0.314 |
0.226 |
-- |
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Profit/(Loss) After Tax |
(10.915) |
9.179 |
106.000 |
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Earnings in Foreign Currency : |
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Total Earnings |
85.641 |
47.026 |
33.368 |
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Imports : |
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Total Imports |
8.698 |
22.928 |
20.039 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses and other expenses |
514.735 |
358.114 |
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Excise Duty (on closing stock ) |
2.086 |
1.135 |
483.060 |
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Increase/(Decrease) in Finished Goods |
6.757 |
3.366 |
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Interest and financial charges |
23.819 |
8.479 |
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Depreciation & Amortization |
18.115 |
13.737 |
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Total Expenditure |
565.512 |
384.831 |
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LIMITED%20-%20HKA%2020-Sep-2007_files/image003.gif){kind=small}
LIMITED%20-%20HKA%2020-Sep-2007_files/image004.gif){kind=small}
QUARTERLY RESULTS
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PARTICULARS |
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30.06.2007 1st
Quarter |
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Sales Turnover |
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|
142.000 |
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Other Income |
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|
01.700 |
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Total Income |
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|
143.700 |
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Total Expenditure |
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|
07.700 |
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Operating Profit |
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|
07.700 |
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Interest |
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|
07.700 |
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Gross Profit |
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|
0.000 |
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Depreciation |
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|
04.600 |
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Tax |
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|
0.000 |
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Reported PAT |
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(04.600) |
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200706 Quarter 1 –
Notes Expenditure Includes (Increase) / Decrease in Stock in
Trade Rs (2.754) million Consumption of Raw Materials Rs 121.546 million Staff Cost
Rs 3.544 million Other Expenditure Rs 13.629 million Tax Indicates Provision
for Taxation (FBT) EPS is Basic & Diluted 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 01 Complaints disposed off
during the quarter 01 Complaints unresolved at the end of the quarter Nil 1.
The above results were taken on record by the Board of Directors at their
meeting held on July 27, 2007. 2. Previous period / year figures have been
regrouped wherever considered necessary. 3. The Company has only one segment of
activity namely Polymeric Compounds. 4. No Interest was payable in respect of
the Negotiated Settlement (NS) amount up to June 30, 2006, hence the interest
expenses of the respective quarter are not comparable.
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 [9 Months] |
30.06.2005 [15 Months] |
|
Debt-Equity Ratio |
|
6.03 |
7.55 |
0.00 |
|
Long Term Debt-Equity Ratio |
|
3.44 |
6.35 |
0.00 |
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Current Ratio |
|
1.05 |
1.44 |
1.41 |
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TURNOVER RATIOS |
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Fixed Assets |
|
1.92 |
1.87 |
1.42 |
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Inventory |
|
14.67 |
16.24 |
14.67 |
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Debtors |
|
6.46 |
9.88 |
11.38 |
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Interest Cover Ratio |
|
0.56 |
2.08 |
4.90 |
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Operating Profit Margin(%) |
|
5.18 |
7.34 |
27.91 |
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Profit Before Interest And Tax Margin(%) |
|
2.20 |
4.18 |
24.84 |
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Cash Profit Margin(%) |
|
1.18 |
5.29 |
22.84 |
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Adjusted Net Profit Margin(%) |
|
(1.79) |
2.12 |
19.77 |
|
Return On Capital Employed(%) |
|
0.00 |
6.66 |
36.96 |
|
Return On Net Worth(%) |
|
0.00 |
8.45 |
442.82 |
LOCAL AGENCY FURTHER INFORMATION
FIXED ASSETS
v
Land
v
Buildings
v
Factory
v
Plants Machinery
v
Electrical
v
Installations
v
And Fittings
v
Office Equipments
v
Computers
v
Furniture and Fixture
v
Vehicles
v
Capital Advance
Operations and Review
During year under review the company has
produced 8428 MT of various grade of compound as against the production of 5813
MT for 9 months period ended on 31.03.2006. Turnover for the year has been
Rs.535.191 millions (net of excise duty) compared to Rs.378.268 millions for 9
months period ended on 31.03.2006 (net excise duty).
During this period there was increase in raw
materials prices, reduction of US $ against Rupee, reduction of custom duty on
finished products and competition from international manufacturers had affected
the profitability of the company.
OUTLOOK
Future outlook of
the Industry is bright and lucrative. With the increased stress on the development
of the infrastructure, demand of products of the company may increase. The
company has been continuously trying to grab new opportunities. The company has
developed new strategy of marketing and encash it in the years to come. Since
the margin of XLPE compound gone below, the company is planning to |develop
some new products like color master batches, XLPE PVC compound, Zero Halogen
etc. and develop market for the same.
When an astute,
veteran economist had told a young scientist and prospective son-in-law at a
Harvard cocktails and dinner thirty years ago, “There’s a great future in
plastics, kid! Never forget it!” the boy thought the old man had one too many.
Today plastics and its mind-boggling applications completely dominate their
lifestyle, almost elbowing aside iron and steel. It has transformed their
expectations with a whole new way they define their preferences and appraise
consumer durables before they accept them into the daily lives.
Continuous research and new discoveries in processing hydrocarbons and
inventing new compounds, colours, catalysts and master batches have opened up
unlimited possibilities, accelerating the pace of industrial production in the
world of polymer compounds and plastics.
Blazing a new trail in modern polymers is a name to reckon with—
Infrastructure
Polylink Polymers plays a pivotal in
The Plant and corporate offices include online connectivity, and are physically
well-connected by land, sea and air with all parts of
Top qualified and expert professionals in petrochemicals and hydrocarbon
processing and a proactive as well as pragmatic management and marketing team
propel the Company in alignment with high ideals and goals.
Corporate
PPIL believes that “the customer is entitled to the very best as value for
investment.” The Company has strategically chosen to acquire the world’s finest
and proven technology from AEI Compounds,
The pioneers of SIOPLAST technology, AEI Compounds UK is esteemed and sought
after across the globe for its expertise in manufacture of a wide range of
cable insulating compounds up to 33 KV.
Prioritized quality is at the core of all their activities. They aim to improve
the quality of life by producing innovative materials that determine the shape
of things to come and refine modern living. By rallying management insight
along with corporate foresight, they expect to build a global company, to
acquire leadership in polymer compounds, and to be outstanding in every aspect
of their operations and performance.
Company is engaged
in the manufacturing of Polyethylene silane cross-linkable compounds for Low
Voltage and Medium Voltage insulation & jacketing and Thermoplastic
Semi-conducting Compounds for Power Cables.
Cable Insulation and
sheathing Compounds for Telecom Cables
Engineering Plastic
Compounds
a) Polypropylene Compounds filled with Minerals and Glass for Garden
Furniture and other applications
b) Polypropylene
modified with EPDM
c) PBT filled with
Glass, MIneral and Fire Retardant Additives
d) Nylon filled with
Glass, Mineral
e) Fire-retardant,
thermoplastic, polyolefin-based compounds
f) Additive Master Batches
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.39.91 |
|
|
1 |
Rs.79.88 |
|
Euro |
1 |
Rs.55.88 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
1 |
|
OPERATING SCALE |
1~10 |
1 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
1 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
10 |
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 |
|