MIRA
INFORM REPORT
|
Report Date : |
02.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
POLYMER INDUSTRIES INDIA LIMITED |
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Registered Office : |
Plot No. 160 and 161 C/D, IDA, Phase- 2, Cherlapally, Hyderabad-500051,
Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
08.11.1990 |
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Com. Reg. No.: |
01-11927 |
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CIN No.: [Company
Identification No.] |
U25209AP1990PLC011927 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDP01481E |
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PAN No.: [Permanent
Account No.] |
AABCP2296F |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Densetec, HDPE, Polypropylene, HMW and LDPE sheet and
Polyslick UHMW Sheet, Road and Profile for applications in a wide variety of
industries. |
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 270000 |
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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. Business is active. 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 : |
Plot No. 160 and 161 C/D, IDA, Phase- 2, Cherlapally,
Hyderabad-500051, Andhra Pradesh, India |
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Tel. No.: |
91-40-27263375 |
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Fax No.: |
91-40-27261219 |
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E-Mail : |
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Website : |
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Head Office : |
PO Box 32, 10526 AL Hwy 40, Henagar, Al 35978 USA |
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Tel. No.: |
91-256-6575197 |
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Fax No.: |
91-256-6575189 |
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Toll Free: |
91-877-4890039 |
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West Cost Office : |
2100 N Redwood Road, Salt Lake City, UT 84116 USA |
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Tel. No.: |
91-801-3633109 |
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Fax No.: |
91-801-3644381 |
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Toll Free: |
91-800-2207004 |
DIRECTORS
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Name : |
Mr. Kapal Saigal |
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Designation : |
Director |
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Address: |
132, Wynn Haven, Circle Scottsboro, Al 35769, USA |
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Date of Appointment : |
09.06.2004 |
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Name : |
Ms. Ashoo Saigal |
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Designation : |
Director |
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Address: |
3724, Tynemoore TrSntrna, GA 30080, USA |
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Date of Appointment : |
09.06.2004 |
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Name : |
Mr. Rohit Saigal |
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Designation : |
Director |
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Address: |
132, Wynn Haven, Circle Scottsboro, Al 35769, USA |
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Date of Appointment : |
09.06.2004 |
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Name : |
Mr. Rajesh Saigal |
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Designation : |
Director |
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Address: |
Chandralok A, Flat No. 205, 97, Nepean Sea Road, Mumbai-400006,
Maharashtra, India |
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Date of Appointment : |
09.06.2004 |
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Name : |
Mr. Maj Gen B. P Roy |
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Designation : |
Director |
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Address: |
B-207, Sainikpuri, Secunderabad-500094, Andhra Pradesh, India |
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Date of Appointment : |
21.10.2008 |
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Name : |
Mr. Madan Mohan Mohanka |
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Designation : |
Director |
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Address : |
146, Block ‘G’, New Alipore, Kolkata-700053, West Bengal, India |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 24.09.2008
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Names of Shareholders |
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No. of Shares |
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Polymer Industries LLP |
|
3149920 |
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Kapal Saigal |
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10 |
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Rohit Saigal |
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10 |
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Ashoo Saigal |
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10 |
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Neena Saigal |
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10 |
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Era Saigal |
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10 |
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Rajesh Saigal |
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10 |
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Shashi Saigal |
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10 |
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Ramanlal Saigal |
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10 |
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Total |
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3150000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2008
|
Category |
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Percentage |
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Foreign holdings (Foreign institutional investor(s), Foreign companie(s)
Foreign financial institution(s), Non-resident Indian(s) or Overseas
corporate bodies or others) |
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100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Densetec, HDPE, Polypropylene, HMW and LDPE sheet and Polyslick
UHMW Sheet, Road and Profile for applications in a wide variety of
industries. |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
·
State Bank of Hyderabad, Commercial Branch, Suryatowers, S.P. Road,
Secundarabad-500003 |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountant |
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Address : |
# 8-2-293/82/A/1131A, Road No. 36, Jubilee Hills, Hyderabad-500034,
Andhra Pradesh, India |
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Address: |
6-3-550, II Floor, L.B. Bhavan, Somajiguda, Hyderabad-500082, Andhra Pradesh,
India |
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Holding Company : |
Polymer Industries LLP, USA |
CAPITAL STRUCTURE
As on 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3500000 |
Equity Shares |
Rs. 10/- each |
Rs. 35.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3150000 |
Equity Shares |
Rs. 10/-
each |
Rs. 31.500
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
31.500 |
31.500 |
31.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
23.694 |
17.525 |
13.256 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
55.194 |
49.025 |
44.756 |
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LOAN FUNDS |
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1] Secured Loans |
28.700 |
18.080 |
15.983 |
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2] Unsecured Loans |
8.284 |
11.822 |
14.700 |
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TOTAL BORROWING |
36.984 |
29.902 |
30.683 |
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DEFERRED TAX LIABILITIES |
4.719 |
4.957 |
4.592 |
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TOTAL |
96.897 |
83.884 |
80.031 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
56.601 |
42.675 |
34.576 |
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Capital work-in-progress |
2.516 |
12.452 |
8.538 |
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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 |
22.870
|
13.666 |
12.177 |
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Sundry Debtors |
34.108
|
40.359 |
35.075 |
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Cash & Bank Balances |
3.601
|
3.241 |
3.060 |
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Other Current Assets |
0.041
|
0.086 |
0.071 |
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Loans & Advances |
5.631
|
5.487 |
5.647 |
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Total
Current Assets |
66.251
|
62.839 |
56.030 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
26.747
|
29.746 |
16.655 |
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Provisions |
1.724
|
4.336 |
2.458 |
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Total
Current Liabilities |
28.471
|
34.082 |
19.113 |
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Net Current Assets |
37.780
|
28.757 |
36.917 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
96.897 |
83.884 |
80.031 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
138.813 |
116.758 |
110.692 |
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Other Income |
8.075 |
5.933 |
7.253 |
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Total Income |
146.888 |
122.691 |
117.945 |
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Profit/(Loss) Before Tax |
8.349 |
9.013 |
17.598 |
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Provision for Taxation |
1.417 |
3.883 |
0.000 |
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Profit/(Loss) After Tax |
6.932 |
5.130 |
17.598 |
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Earnings in Foreign Currency : |
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Export Earnings |
18.034 |
13.833 |
NA |
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Imports : |
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Raw Materials |
51.052 |
32.168 |
NA |
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Stores & Spares |
0.246 |
0.388 |
NA |
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Total Imports |
51.298 |
32.556 |
NA |
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Expenditures : |
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Raw Material Consumed |
59.261 |
51.679 |
39.258 |
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Salaries, Wages, Bonus, etc. |
11.955 |
9.933 |
8.415 |
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Managerial Remuneration |
0.324 |
0.000 |
0.000 |
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Payment to Auditors |
0.500 |
0.500 |
0.281 |
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Interest |
2.960 |
2.361 |
3.737 |
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Insurance Expenses |
0.566 |
0.540 |
0.473 |
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Depreciation & Amortization |
3.880 |
3.059 |
3.243 |
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Other Expenditure |
59.093 |
45.606 |
44.940 |
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Total Expenditure |
138.539 |
113.678 |
100.347 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
4.72
|
4.18 |
14.92 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.01
|
7.72 |
15.89 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.79
|
8.54 |
19.42 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.18 |
0.39 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.19
|
1.30 |
0.39 |
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Current Ratio (Current Asset/Current Liability) |
|
2.32
|
1.84 |
2.93 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONAL PERFORMANCE AND FURTHER OUTLOOK
During the year the Company has registered a
total Income of Rs. 146.888 Millions as against 122.691 Millions registered a
marginal growth of 19.72% over the previous year. The Net Profit after tax has
stood of Rs. 6.931 Millions as against Rs. 5.130 Millions for the previous
year, which is 35.11% higher than the previous year.
The Board of Directors would like to
acknowledge and appreciate the support, co-operation, extended by employees,
financial institutions others which helped the Company to recover from the loss
caused due to fire accident in year 2005-06.
They are of the opinion that the Company will
continue to maintain and grow in the years to come and is positioned well for
the change, sustain improved performance and will continue to use cutting edge
technology and high quality capital to propel the company’s future growth.
Capital Reserve:
The Company had availed as unsecured loan from
Poly Hi Solidur Inc. USA on December 23, 1998 amounting to USD 225000
(Equivalent Rs. 9.563 Million) The Purpose of availing the said loan was to
repay the secured loan from Industrial Credit and Investment Corporation of
India Limited (ICICI), existing as on that date, which was initially availed to
meet the project cost of the company. The loan had been unconditionally waived
by the lender with effect form January 1, 2001 vide a collaboration agreement
dated December 23, 2001. Consequently, the Principal amount of the loan
collaboration agreement dated December 23, 2001. Consequently, the principal
amount of the loan Rs. 9.562 Million which had been waived, being capital in
nature, was transferred to Capital Reserve in an earlier year. A Proportionate
amount, arrived at based on the depreciation rate applicable to the related
plant and machinery, is being adjusted against the depreciation charge in the
Profit and Loss Account.
Fixed Assets:
·
Freehold Land
·
Factory Building
·
Plant and Machinery
·
Electrical Installation
·
Moulds
·
Laboratory Equipment
·
Office Equipments
·
Computers
·
Furniture and Fixtures
·
Vehilcles.
Bankers Charges
Report as per Registry
|
Name of the company |
POLYMER INDUSTRIES INDIA LIMITED |
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Presented By |
Jointly by the
Company any by the Banker |
|
1) Date and description of instrument creating the change |
1. Agreement for Hypothecation
of Goods and Assets 2. Agreement of
Loan for over all limits as security for a loan of Rs. 22.000 Millions both
dated 13.04.1996 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 22.000
Millions |
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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 Security: Raw Materials,
Stock in Process, Finished goods, consumables, Spares, Book Debts and
Receivables |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Margin: 10% Rate of Interest:
20.25% |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Hyderabad, Commercial Branch, Suryatowers, S.P. Road,
Secundarabad-500003, Andhra Pradesh, India |
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6) Date and brief description of instrument modifying the charge |
1. Memorandum of
Deposit for creation of charge for Term Loan/ Over all Limit (C-9) 2. Memorandum of
Deposit of Title Deeds Both dated 28th January, 2005 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
There is no change
in the credit limits. Total limits remain as Rs.35.000 Millions The limits are
further secured by equitable mortgage of Land and Building in Plot Nos. 160
C/D and 161 C/D, admeasuring 4996 sq. mts. Situated at IDA Phase II,
Cheriapally, R.R. District |
|
Corporate
identity number of the company |
U25209AP1990PLC011927 |
|
Name of the
company |
POLYMER INDUSTRIES INDIA LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
Plot No. 160 and161 C/D, IDA, Phase- 2, Cherlapally, Hyderabad-500051,
Andhra Pradesh, India |
|
This form is for |
Modification of
Charge |
|
Type of charge |
Hypothecation Equitable mortgage or mortgage of property by depositing the title deeds |
|
Particular of
charge holder |
State Bank of Hyderabad, Commercial Branch, Suryatowers, S.P. Road,
Secundarabad-500003, Andhra Pradesh, India |
|
Amount secured by
the charge |
Rs. 35.500
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
1.
Rate of
Interest : SME (Credit Plus) : 11.50 p.a. CC (Hypothecation): 11.50% 2.
Margin: CC
Limits On Raw Material –
25% Stock In Process
– 25% Finished Goods –
25% Receivables/ Book
Debts – 50% on book debts / receivables less than 90 days Bank Guarantee:
25% Letter of Credit
– 25% |
|
Description of
the property charged indicating whether it is a charged on |
Immovable
properties Plant and
Machinery Stock in trade Book Debts |
|
Charge
identification number of the charge to be modified |
90123842 |
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.50.52 |
|
UK Pound |
1 |
Rs.75.08 |
|
Euro |
1 |
Rs.63.72 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|