MIRA
INFORM REPORT
|
Report Date : |
05.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
REDDYS POLYMERS PROCESSING LIMITED |
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Formerly Known As : |
REDDYS POLYMERS LIMITED |
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Registered Office : |
Plot No.28, G-2, Arun Aptsbhagya Nagar, Opp KPHB Colony, Hyderabad – 500072,
Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21.09.1995 |
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Com. Reg. No.: |
021774 |
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CIN No.: [Company
Identification No.] |
U25202AP1995PLC021774 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Plastic Products. |
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 263268 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed 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 normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Plot No.28, G-2, Arun Aptsbhagya Nagar, Opp KPHB Colony, Hyderabad –
500072, Andhra Pradesh, India |
|
Tel. No.: |
91-40-66322618/619/ 23062701 |
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Telefax : |
91-40-23062701 |
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E-Mail : |
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Website : |
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Factory : |
SY No. 15, Suraram Village, Wuthbhullaphur Mankdal, Hyderabad –
500055, Andhra Pradesh, India |
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Tel. No.: |
91-40-64514044 |
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Fax No.: |
91-40-65174045/ 23090001 (Telefax) |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. J S R Krishna Reddy |
|
Designation : |
Managing Director |
|
Address : |
Flat No.102, R K Tower, S Bhagyanagar, Colony, Hyderabad – 500072,
Andhra Pradesh, India |
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Date of Birth/Age : |
01.10.1959 |
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Date of Appointment : |
21.09.1995 |
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Name : |
Mr. B Koti Reddy |
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Designation : |
Director |
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Address : |
HIG-68, Phase – II, KPHB Colony, Hyderabad – 500072, Andhra Pradesh,
India |
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Date of Birth/Age : |
02.01.1956 |
|
Date of Appointment : |
25.06.1998 |
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|
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Name : |
Mr. T Veera Venkateswarlu |
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Designation : |
Director |
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Address : |
G-2, MIG-100, Priya Apartments, VIth Phase, KPHB Colony, Hyderabad –
500072, Andhra Pradesh, India |
|
Date of Birth/Age : |
17.12.2004 |
|
Date of Appointment : |
15.09.2000 |
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Name : |
Mr. Jonnala Arun Kumari |
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Designation : |
Whole Time Director |
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Address : |
Flat No.102, R K Tower, S Bhagyanagar, Colony, Hyderabad – 500072,
Andhra Pradesh, India |
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Date of Birth/Age : |
20.12.1965 |
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Date of Appointment : |
17.12.2004 |
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Name : |
Mr. Koti Reddy Chedepudi |
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Designation : |
Additional Director |
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Address : |
Plot No.9, Flat No.102, Vijayanagar, Near Huda Park, Datta Sai
Apartments Vivekanand Nagar Colony, Hyderabad – 500072, Andhra Pradesh, India |
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Name : |
Mr. Gogula Satyanarayana Reddy |
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Designation : |
Whole Time Director |
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Address : |
D-71, IDPL Colony, Balanagar, Hyderabad – 500037, Andhra Pradesh,
India |
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Date of Birth/Age : |
01.11.1947 |
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Date of Appointment : |
17.12.2004 |
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Name : |
Mr. V Veera Reddy |
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Designation : |
Director |
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Name : |
Mr. Kameswara Rao |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 14.11.2007)
|
Names of Shareholders |
|
No. of Shares |
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Mr. Gudibandi Sreenivasa Reddy |
|
70500 |
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Mrs. Anitha and Ambika |
|
18000 |
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Mr. S. Rama |
|
15000 |
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Mr. Dr. K Anji Reddy |
|
10000 |
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Mr. Gudimetla Manga Reddy |
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12000 |
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Mr. G. Mathi Reddy |
|
4500 |
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Mr. Balla Vijaya Bhaskar Rao |
|
10000 |
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Mrs. M Radhika and JSP Krishna Reddy |
|
260000 |
(As on 31.03.2007
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Category |
|
Percentage |
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Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Plastic Products. |
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Products : |
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GENERAL
INFORMATION
|
Bankers : |
6-3-879/B, 1st Floor, G Pulla Reddy Building, Greenlands,
Begumpet Raod, Hyderabad – 500016, Andhra Pradesh, India
Landmark, Race Course Circle, Vadodara – 390007, Gujarat, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K S Ramakrishna and Company Chartered Accountant |
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Address : |
285/286, 2nd Floor, Chenoy Trade Centre, C Block Park Lane,
Secunderabad – 500003, Andhra Pradesh, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
6000000 |
Equity Shares |
Rs.10/- each |
Rs.60.000 Millions |
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|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2699600 |
Equity Shares |
Rs.10/- each |
Rs.26.996
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
|
26.996 |
19.996 |
|
|
2] Share Application Money |
|
13.000 |
7.000 |
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3] Reserves & Surplus |
|
25.821 |
19.230 |
|
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
65.817 |
46.226 |
|
|
LOAN FUNDS |
|
|
|
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1] Secured Loans |
|
116.282 |
88.277 |
|
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2] Unsecured Loans |
|
80.600 |
79.937 |
|
|
TOTAL BORROWING |
|
196.882 |
168.214 |
|
|
DEFERRED TAX LIABILITIES |
|
4.724 |
4.514 |
|
|
|
|
|
|
|
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TOTAL |
|
267.423 |
218.954 |
|
|
|
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|
|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
|
104.497 |
76.264 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
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|
|
|
|
|
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INVESTMENT |
|
9.869 |
32.347 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
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|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
|
153.970
|
72.156 |
|
|
Sundry Debtors |
|
89.475
|
67.780 |
|
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Cash & Bank Balances |
|
5.670
|
2.565 |
|
|
Other Current Assets |
|
30.293
|
19.501 |
|
|
Loans & Advances |
|
0.000
|
0.000 |
|
Total
Current Assets |
|
279.408
|
162.002 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
|
129.814
|
54.403 |
|
|
Provisions |
|
2.002
|
1.291 |
|
Total
Current Liabilities |
|
131.816
|
55.694 |
|
|
Net Current Assets |
|
147.592
|
106.308 |
|
|
|
|
|
|
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MISCELLANEOUS EXPENSES |
|
5.465 |
4.035 |
|
|
|
|
|
|
|
|
TOTAL |
|
267.423 |
218.954 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
477.361 |
370.076 |
200.447 |
|
|
Other Income |
3.081 |
2.979 |
5.691 |
|
|
Total Income |
480.442 |
373.055 |
206.138 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
8.327 |
7.508 |
3.878 |
|
|
Provision for Taxation |
1.737 |
1.843 |
0.947 |
|
|
Profit/(Loss) After Tax |
6.590 |
5.665 |
2.931 |
|
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|
|
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Expenditures : |
|
|
|
|
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Raw Material Consumed |
302.933 |
245.356 |
107.483 |
|
|
Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
|
|
Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
(29.750) |
(21.943) |
0.807 |
|
|
Salaries, Wages, Bonus, etc. |
11.939 |
7.888 |
5.813 |
|
|
Managerial Remuneration |
1.475 |
0.635 |
0.501 |
|
|
Payment to Auditors |
0.063 |
0.063 |
0.059 |
|
|
Interest |
16.306 |
10.002 |
6.090 |
|
|
Insurance Expenses |
1.959 |
1.084 |
0.853 |
|
|
Power & Fuel |
14.805 |
17.334 |
12.783 |
|
|
Depreciation & Amortization |
19.005 |
14.383 |
9.455 |
|
|
Other Expenditure |
133.379 |
90.745 |
58.416 |
|
Total Expenditure |
472.114 |
265.547 |
202.260 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
1.37
|
1.52 |
1.88 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.74
|
2.03 |
1.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.17
|
3.15 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.16 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.99
|
4.84 |
NA |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.12
|
2.91 |
NA |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Corporate
identity number (CIN) Foreign company registration number |
U25202AP1995PLC021774 |
|
Name of the
Company |
REDDYS POLYMERS PROCESSING LIMITED |
|
Address |
Plot No.28, G-2, Arun Aptsbhagya Nagar, Opp KPHB Colony, Hyderabad –
500072, Andhra Pradesh, India |
|
This form is for |
Modification of
charge |
|
Type of Charge |
Immovable
Property Book Debts Movable Property
(not being pledge) Floating Charge As per
Sanction Letter |
|
Particulars of
the charge holder |
Axis Bank Limited 6-3-879/B, 1st Floor, G Pulla Reddy Building, Greenlands,
Begumpet Raod, Hyderabad – 500016, Andhra Pradesh, India |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Deed of
Hypothecation Term Loan
Agreement Letter of
Agreement : Cash Credit Advances Memorandum of
Entry Sanction Letter |
|
Date of the
instrument creating or modifying the charge |
28.12.2007 |
|
Amount secured by
the charge |
Rs.257.500
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of
Interests: For cash credit
limits of Rs.195.000 Millions BPLR-2% i.e. 13% p.a. presently, payable at
monthly rests. For term loan- II
of Rs.42.500 Millions BPLR 2% i.e.13% presently at monthly rests. For Term Loan- I
of RS.20.000 Millions there is no change in the existing rates of BPLR – 3%
O.E. 10.50% presently, payable monthly rests. Terms of
Repayment: Cash Credit
Repayable on demand Term Loan – I As
per the existing term and conditions Term Loan – II
Repayable in initial 8 months of Rs.0.500 Million each commencing from
31.01.2008, Thereafter one installment of Rs.1.000 Million on 30.09.2008 and
finally in 25 monthly installment of Rs.1.500 Millions each from 31.10.2008
to 31.10.2010. Margin: For cash credit
25% on stock and book debts (Book Debts cover period 90 days) for term loan –
II 32.64% Extent and
operation of charge: The charge
operative as security for the due repayable of the amount with interests,
additional interests and expenses etc. |
|
Short particulars
of the property charged (including location of the property) |
As per sanctio0n
letter no Axis B/HYD/CBO/2007-08/095, Dated December 18.2007 |
|
Particular of the
present modification |
The cash Credit
limit enhanced from Rs.80.000 Millions to Rs.195.000 Millions There is no change
in the existing loan I limits of Rs.20.000 Millions Fresh sanction term loan
II Limits Rs.42.500 Millions Total limits Rs.257.500 Millions. |
|
Name of the company |
REDDYS POLYMERS PROCESSING LIMITED |
|
Presented By |
Mr. J S R Krishna
Reddy, Managing Director |
|
1) Date and description of instrument creating the change |
Deed of
Hypothecation of Machinery and other movable fixed assets dated 25.09.2004 Agreement for
hypothecation of current assets dated 25.09.2004 Letter of
arrangement for cash credit advance dated 25.09.2004 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Cash Credit Rs.30.000 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 |
Primary: First charge on
the entire current assets, present and future of the company Collateral: Extension of
charge on the entire fixed assets including land and building, present and
future, of the company (Executing vehicles purchased on the hire purchases) Equitable
mortgage of Flat No.102, Ramakrishna Tower, Under Survey No.s2-22-1/35/1 to
22, Bhagyanagar, Society, Kukatpally, Municipality, R R District standing in
the name of Mr. J S R Krishna Reddy Personal
Guarantee of the director viz. Mr. J S R Krishna Reddy, Mr. B Koti Reddy and
Mr. T V Venkateshwarlu Assignment of
key-man policy (of LIC) proposed to be taken for Mr. J S R Krishna Reddy,
Managing Director of the company for a sum assured of Rs.10.000 Millions
under the policy. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interests: BPLR +
0.50% i.e. 12.50% p.a. at present at monthly rests. Margin: Stocks
25% and Book Debts 40% Cover period for
book debts: 90 days |
|
5) Name and Address and description of the person entitled to the charge. |
Axis Bank Limited 6-3-879/B,
Greenland Road, Begumpet, Hyderabad – 500016, India |
|
6) Date and brief description of instrument modifying the charge |
Declaration from
borrower when property of the borrower are mortgage dated 08.10.2004 Deed of
Confirmation of creation of Equitable mortgage on 08.10.2004 |
|
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. |
No additional
facilities are sanctioned to the company. Now documents pertaining to
creation of equitable mortgage in respect of the following immovable property
standing in the name of the company as a security for the cash credit limit
of Rs.30.000 Millions are being field: Land bearing
survey no.15 part, admeasuring acre 0.37 guntas, situated at suraram village,
quthampur municipal RR District Flats bearing
Nos. 2and 3 in ground floor, of Arun
apartment with a built up area of 1000 sq. ft. (including common area) along
with 40 sq. yards of un-divided and un-specified share out of 600 sq. yards
of land located at Plot. No.28 in Survey No.167 Bhagyanagar Society RR
District. |
History:
Subject is incorporated as a Private limited Company on 21st
September, 1995 for carrying on the business of manufacturing of PP and HDPE
molded consumer Products. Subject was converted into a public limited company
during April, 1996.
Subject has started with operating capacity of 360 MTA
during 1997-98,
In 4th Quarter of 1999 subject enhanced the production
capacity from 360MTA to 875MTA.
In March, 2000 subject entered into a tie-up with M/s
Nilkamal Plastics Limited to manufacture the Molded Chairs as an associated
producer.
In 2001, 3rd Quarter Heritage
Polymers Limited has been floated along with other associates
of subject promoters, with a Manufacturing capacity of 350 MTA.
In 2002, 4th Quarter Ree
Polyplast has come with a manufacturing capacity of 1800MTA.
By the end of 2006, the Group production installed capacity
has gone up to 14500 MTA with above three production units.
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.39.97 |
|
UK Pound |
1 |
Rs.79.78 |
|
Euro |
1 |
Rs.62.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
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 |
|