MIRA
INFORM REPORT
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Report Date : |
01.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
BALKRISHNA PAPER MILLS LIMITED |
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Registered Office : |
205, Creative Industrial Estate, 72, N. M. Joshi Marg, Lower Parel,
Mumbai 400011, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
10.03.2007 |
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Com. Reg. No.: |
168591 |
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CIN No.: [Company
Identification No.] |
U21093MH2007PLC168591 |
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Legal Form : |
Subject is a Public Limited Liability Company |
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Line of Business : |
Manufacturer of Paper and Paper Boards |
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 1350000 |
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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 new company and took over the running business of the
paper division of Balkrishna Industries Limited as a going concern. The company has done satisfactory business
in the very first year of its operations.
Trade relations are fair.
General financial position is satisfactory. Payments are reported as usually made as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
205, Creative Industrial Estate, 72, N. M. Joshi Marg, Lower Parel,
Mumbai 400011, Maharashtra, India |
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Tel. No.: |
91-22-66663800 |
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Fax No.: |
91-22-66663871 |
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E-Mail : |
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Factory 1 : |
102, S. J. House, Sitaram Mill Compound, N. M Joshi Marg, Mumbai
400011, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Sachin Nath Chaturvedi |
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Designation : |
Director |
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Address : |
2803/04, 28th Floor, Shreepati Arcade, A. K. Marg, Nana
Chowk, Mumbai 400036, Maharashtra, India |
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Date of Birth/Age : |
30.09.1950 |
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Date of Appointment : |
16.05.2008 |
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Name : |
Mr. Arvind Kumar Poddar |
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Designation : |
Director |
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Address : |
82, Mount Unique, 62 A, G. Deshmukh Road, Mumbai 400026, Maharashtra,
India |
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Date of Birth/Age : |
07.11.1957 |
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Date of Appointment : |
10.03.2007 |
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Name : |
Mr. Rajiv Arvind Kumar Poddar |
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Designation : |
Director |
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Address : |
82, Mount Unique, 62 A, G. Deshmukh Road, Mumbai 400026, Maharashtra,
India |
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Date of Birth/Age : |
22.12.1984 |
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Date of Appointment : |
10.03.2007 |
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Name : |
Mr. Anurag Pawankumar Poddar |
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Designation : |
Director |
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Address : |
1501, Nepean House, 15th Floor, Nepean Sea Road, Mumbai
400006, Maharashtra, India |
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Date of Birth/Age : |
13.07.1981 |
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Date of Appointment : |
10.03.2007 |
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Name : |
Mr. Kishanlal Jangir |
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Designation : |
Director |
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Address : |
A 103, Shree Laxmi Narayan Apartments, Jesal Oark, Bhayander 401105,
Thane, Maharashtra, India |
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Date of Birth/Age : |
05.03.1958 |
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Date of Appointment : |
30.10.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 12.06.2008
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Names of Shareholders |
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No. of Shares |
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Balkrishna Industries Limited |
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2999400 |
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Arvind Kumar Poddar |
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100 |
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Ramesh Kumar Poddar |
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100 |
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Shrikishan Poddar |
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100 |
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Rajiv Poddar |
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100 |
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Sangeeta Poddar |
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100 |
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Gaurav Poddar |
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100 |
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Total |
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3000000 |
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Convertible
Preference Shares |
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No. of Shares |
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Balkrishna Industries Limited |
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19500000 |
AS ON 31.03.2008
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Equity Share Breakup
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Percentage of
Holding |
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Category |
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Bodies corporate |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Paper and Paper Boards |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Paper/Paper Boards |
Metric Tones |
33000 |
54000 |
50087 |
GENERAL
INFORMATION
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Bankers : |
Industrial
Finance Branch, 104, Bharat House, Mumbai Samachar Marg, Fort, Mumbai 400023,
Maharashtra, India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Jayantilal Thakkar and Company Chartered Accountants |
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Address : |
111-A, Mahatma Gandhi Road, Fort, Mumbai 400023, Maharashtra, India |
CAPITAL STRUCTURE
AS ON 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 30.000 Millions |
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2000000 |
Preference Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
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Total |
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Rs. 50.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 30.000 Millions |
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1950000 |
Preference Shares |
Rs. 10/- each |
Rs. 19.500 Millions |
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Total |
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Rs. 49.500 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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49.500 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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220.919 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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270.419 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
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2] Unsecured Loans |
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21.299 |
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TOTAL BORROWING |
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21.299 |
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DEFERRED TAX LIABILITIES |
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8.684 |
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TOTAL |
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300.402 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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130.060 |
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Capital work-in-progress |
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24.039 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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109.994 |
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Sundry Debtors |
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93.868 |
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Cash & Bank Balances |
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13.968 |
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Other Current Assets |
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1.735 |
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Loans & Advances |
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40.953 |
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Total
Current Assets |
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260.518 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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97.076 |
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Provisions |
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17.139 |
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Total
Current Liabilities |
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114.215 |
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Net Current Assets |
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146.303 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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300.402 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2008 |
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Sales Turnover |
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1111.334 |
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Other Income |
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28.422 |
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Total Income |
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1139.756 |
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Profit/(Loss) Before Tax |
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68.749 |
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Provision for Taxation |
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23.264 |
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Profit/(Loss) After Tax |
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45.485 |
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Total Imports |
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167.306 |
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Expenditures : |
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Raw Material Consumed |
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730.673 |
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Consumption of stores and spares parts |
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23.949 |
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Increase/(Decrease) in Finished Goods |
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[15.925] |
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Salaries, Wages, Bonus, etc. |
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34.978 |
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Managerial Remuneration |
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0.589 |
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Payment to Auditors |
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0.446 |
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Interest |
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0.000 |
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Insurance Expenses |
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1.662 |
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Power & Fuel |
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213.628 |
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Depreciation & Amortization |
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6.705 |
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Other Expenditure |
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74.302 |
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Total Expenditure |
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1071.007 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 |
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PAT / Total Income |
(%) |
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3.99 |
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Net Profit Margin (PBT/Sales) |
(%) |
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6.19 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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17.60 |
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Return on Investment (ROI) (PBT/Networth) |
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0.25 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.50 |
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Current Ratio (Current Asset/Current Liability) |
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2.28 |
LOCAL AGENCY FURTHER
INFORMATION
Note:
The Registered office of the company has been shifted from 418, Creative
Industrial Estate, 72, N. M. Joshi Marg, Mumbai 400011, Maharashtra, India to
205, Creative Industrial Estate, 72, N. M. Joshi Marg, Lower Parel, Mumbai 400011,
Maharashtra, India w.e.f. 30.10.2007.
Fixed Assets
- Freehold land
- Building and Roads
- Plant and Machinery
- Factory, office and other equipments
- Electric Installation
- Furniture and Fixtures
- Vehicles
- Air Conditioner
Form 8
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U21093MH2007PLC168591 |
|
Name of the
company |
BALKRISHNA PAPER MILLS LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
205, Creative Industrial Estate, 72, N. M. Joshi Marg, Lower Parel,
Mumbai 400011, Maharashtra, India |
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Type of charge |
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Particular of
charge holder |
Corporation Bank Industrial
Finance Branch, 104, Bharat House, Mumbai Samachar Marg, Fort, Mumbai 400023,
Maharashtra, India |
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Nature of
description of the instrument creating or modifying the charge |
Common deed of
hypothecation of movables/assets/debts dated 16.09.2008 creating charge on stock,
book debts and movable fixed assets of the company. |
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Date of
instrument Creating the charge |
16.09.2008 |
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Amount secured by
the charge |
Rs. 20.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Interest at the
rate of 14.00% p.a. i.e. COBAR at present subject to change from time to
time. Terms of
Repayment Running account
repayable on demand subject to annual review/renewal. Margin Inventory 30% and
Book debts – 40% Extent and
Operation of the charge Exclusively first
charge by way of hypothecation of inventory, receivables and movable fixed
assets of the company. |
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Short particulars
of the property charged |
All movable
assets of the company which includes all its stock in trade, raw materials,
goods in process, semi manufactured and manufactured goods, semi finished
products and movable fixed assets situated at Village Ambivili, Post Mohone,
Taluka Kalyan, District Thane, Maharashtra or in transit or wherever else. |
Notes to Accounts:
Subject was incorporated on 10.03.2007 and the
‘Paper Business’ of Balkrishna Industries Limited was transferred to and vested
in the Company, as a going concern, with effect from the Appointed Date
01.04.2007, pursuant to a scheme of arrangement sanctioned by the High Court of
Judicature at Bombay on 10.10.2007.
These financial statements are for the period from the date of incorporation
of the company, namely, 10.03.2007 to 31.03.2008 and includes the results of
the ‘Paper Business’ transferred to the company by Balkrishna Industries
Limited, the Holding Company, with effect from 01.04.2007. This being the first financial year of the
company previous period comparatives are not applicable.
Pursuant to the scheme of Arrangement under
section 391 to 394 of the Companies Act 1956 as sanctioned by the High Court of
Judicature at Bombay on 10.10.2007, with effect from the Appointed Date i.e.
01.04.2007, the Paper business of the Holding Company was transferred to and
vested in the company as a going concern so as to vest in the company all
rights, titles and interest in the Paper Business alongwith its movable assets,
cash and bank balances, Sundry Debtors, outstanding loans and advances, current
assets, secured/unsecured loans, current liabilities and provisions, contingent
liabilities, fixed assets all permits, quotas, rights, permission, brands,
trademarks, etc. The transfer and vesting
of the Paper Business to the Company is subject to existing charges, security
and mortgages, if any, subsisting, over or in respect of any assets forming
part of the Paper Business.
In terms of the scheme, the Paper Business was
carried on and held by the Holding Company, Balkrishna Industries Limited, for
and on account of the Company and possessed all assets and properties of the
Paper Business in trust for the Company from the Appointed date 01.04.2007 and
upto and including the effective date, 08.11.2007. Pursuant thereto all the profits or income accruing or arising to
the Holding Company or expenditure or losses incurred by the Holding Company in
relation to the Paper Business from the appointed date upto the effective date
have been considered that of company and the assets and liabilities have been
transferred to the company. The scheme
has accordingly been given effect to in these accounts.
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. 50.09 |
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UK Pound |
1 |
Rs. 76.68 |
|
Euro |
1 |
Rs. 63.48 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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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 |
|