MIRA INFORM REPORT

 

 

 

Report Date :

03.12.2008

 

IDENTIFICATION DETAILS

 

Name :

AMD INDUSTRIES LIMITED

 

 

Formerly Known As :

AMD METPLAST PRIVATE LIMITED

 

 

Registered Office :

18, Pusa Road, 1st Floor, New Delhi 110005

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

17.12.1983

 

 

Com. Reg. No.:

55-017141

 

 

CIN No.:

[Company Identification No.]

L28122DL1983PLC017141

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELA16340C

 

 

PAN No.:

[Permanent Account No.]

 AAACA2843C

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturing and Packaging Solutions such as cocks, Plastic Closures, crown caps etc.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 5100000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

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

 

The company is doing well.

 

It can be considered god for normal business dealings at usual trade terms.

 

 

LOCATIONS

 

Registered Office :

18, Pusa Road, 1st Floor, New Delhi 110005, India

Tel. No.:

91-11-28758645 / 28758649 / 28758650/ 28753136

Fax No.:

91-11-25753591

E-Mail :

info@amdindustries.com

amdgroup@amdindustries.com

Website :

www.amdindustries.com

Area :

4000 Sq. fts.

Location :

Owned

 

 

Factory 1 :

C-4 and C-5, Suite 3, Meerut Road, Industrial Area, Chaziabad-201003, Uttar Pradesh, India

Tel No.:

91-11-28758645/ 28750649

 

 

Factory 2 :

C-10, Site 3, Ghaziabad, Uttar Pradesh, India

 

 

Factory 3 :

145, Anand Industrial Area, Ghaziabad, Uttar Pradesh, India

 

 

Factory 4:

SP-32, RIICO Industrial Area, Neemrana, Rajasthan

 

 

Regional Offices:

 

Bangalore Office:

802, “Rajman” 7th Cross, 4th Block, V.R. Pura, Bellayout, Banalore-560097, Karnataka, India

E Mail :

amdgroup@amdindustries.com

 

 

Hyderabad Office:

231, Sreepuram Colony, Malakpeto, Hyderabad-500036, Andhra Pradesh, India

E Mail:

amdgroup@amdindustries.com

 

 

Mumbai Office:

Sri Krishna Society, Building No. 2, Flat No. 4, Ground Floor, Near Amber Hotel, Shahad Railway Station, Kalyan West, Mumbai, Maharashtra, India

E Mail\:

amdgrup@amdindustries.com

 

 

DIRECTORS

 

Name :

Mrs. Harswarup Gupta

Designation :

Executive Chairman

Date of Birth/ age:

79 Years

Qualification:

Graduate

Experience:

49 Years

Date of Appointment :

01.07.2006

Other directorship:

Own Business

 

 

Name :

Mr. Chitra Gupta

Designation :

Director

Address :

60/5, Ramjas Road, Karol Bagh, New Delhi 110005, India

 

 

Name :

Mr. Prem Lal Madan

Designation :

Director

Address :

1123,Sector 17B, IFFCO Nagar, Gurgaon 122001

Date of Birth/Age :

07.02.1946

 

 

Name :

Mr. Raj Kumar Aggarwal

Designation :

Director

Address :

8A/27 WEA, Karol Bagh, New Delhi 110005, India

Date of Birth/Age :

01.09.1968

 

 

Name :

Mr. Ashok Gupta

Designation :

Managing Director

Date of Birth/ Age:

55 Years

Qualification:

B.Sc. (Hons)

Experience:

31 Years

Date of Appointment:

17.12.1983

Other Directorship:

Own Business

 

 

Name :

Mr. Adit Gupta

Designation :

Whole time Director

Date of birth/ Age:

29 Years

Qualification:

B.Sc. (Chemical Engineer) and MBA Finance

Experience:

9 Years

Date of Appointment:

14.11.2005

 

 

Name :

Mr. Mahipal Ahluwalia

Designation :

Independent Director

 

 

Name :

Mr. Sheshadri Ratnam

Designation :

Independent Director

 

 

Name :

Mr. Shalil Bhandari

Designation :

Independent Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Raj Kumar Gupta

Designation :

Secretary

Address :

202, Plot No. 660, Shalimar Garden, Uttar Pradesh, India

Date of Birth/Age :

25.10.1973

 

 

Name :

Mr. Aminder Singh Baweja

Designation :

Chief Finance Officer

Date of birth/ Age:

43 Years

Qualification:

B.E. (Mechanical) and MBA

Experience:

18 Years

Date of Appointment:

03.03.2008

Last of Employment held:

Vice President Finance with Trident Group of Companies

 

 

Name :

Mr. Neeraj Prakash

Designation :

Chief Executive Officer

Date of birth/ Age:

51 Years

Qualification:

B.Com (H) and C.A

Experience:

25 Years

Date of Appointment:

01.11.2007

Last of Employment held:

Financial Controller, PVR Group

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2008

 

Names of Shareholders

No. of Shares

Percentage of Holding

Shareholding of Promoter and Promoter group

 

 

Indian

 

 

a. Individuals/ Hindu Undivided Family

8635780

45.06

b. Bodies Corporate

1434400

7.48

Public Shareholdings

 

 

a. Financial Instituions/ Banks

3000

0.02

b. Foreign Institutional investors

1926229

10.05

c. Bodies Corporate

3045213

15.89

d. Individuals

 

 

i. Individual shareholders holding nominal share capital up to Rs. 0.100 Million

3060245

15.97

ii. Individual shareholders holding nominal nominal share capital exceeding Rs. 0.100 Millions

904014

4.72

Non Resident Indians

123293

0.64

Trust

3843

0.02

Clearing members

30732

0.16

Total

19166749

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Packaging Solutions such as cocks, Plastic Closures, crown caps etc.

 

 

Products :

Production Description

ITC Code

Crown Corks

83091000

Pet Preforms

39239090

CSD Plastic Closu

39235010

 

 

Exports :

 

Countries :
  • Tanzania
  • Kenya
  • Uganda
  • Sudan
  • Sri Lanka
  • Maldives
  • Bangladesh
  • Nepal
  • Saudi Arab
  • UAE
  • Latin America

 

 

Imports :

 

Products :

Machinery

Countries :
  • Germany
  • Italy

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

PRODUCTION STATUS

 

Particulars

Unit

 

 

Actual

Production

Crowns

Cases

 

 

66300.83

C.S.D Closures

Nos.

 

 

290974981

Pet Pre Form

Nos.

 

 

47785283

Resin Consumed in above production

Mt

 

 

1684.177

 

 

GENERAL INFORMATION

 

Suppliers :
  • Sacmi, Italy
  • Krauss-Maffei, Germany

 

 

Customers :
  • Pepsi
  • Coca Cola
  • Hindustan Lever Limited
  • Foster India Limited
  • United Breweries
  • SAB Millers PLC

 

 

No. of Employees :

350

 

 

Bankers :
  • The Hongkong and Shanghai Corporation Limited

Barakhamba Road, Cannaught Place, Delhi 110001, India

 

  • State Bank of India, Tolstoy Marg, New Delhi 110001, India
  • State Bank of Indore
  • Union Bank of India
  • Allahbad Bank

 

 

Facilities:

Secured Loan

31.03.2008

Rs. In Millions

From Banks

 

Term Loans

218.196

FCNR B

--

Cash Credit

134.594

From Others

 

Term Loans

45.895

Deferred Sales Tax Loan from PICUP

8.783

Total

407.468

 

 

Unsecured Loan

31.03.2008

Rs. In Millions

From Bank – OD Account

--

From Directors

20.455

Total

20.454

Notes:

1.       Term Loan amounting to Rs. 94.773 Millions Secured against first pari passu charge on fixed assets except the security mentioned at not no. 2, 3 and 6 below and second pari passu charges on current assets and personal guarantee of Directors

2.       Term Loan includes to Rs. 32.391 Million Secured by Hypothecation/ Mortgage of the Specific assets acquired out of the loan security mentioned at note No. 2 and 4 below and second pari passu charges on current assets and personal guarantee of directors.

3.       Term Loan includes to Rs. 91.032 Millions Secured by Corporate of M/S Kadam Trees and Properties Private Limited and personal guarantee of Directors.

4.       Term Loan of Rs. 26.087 Millions Secured by First charge by way of hypothecation of CSD closures Plant and PMC 250 Lining Machine and guarantee of Directors.

5.       Term Loan of Rs. 19.808 Millions Secured by Personal Guarantee of the Directors.

6.       Deferred Sale Tax Loan is secured by way of second pari passu charge on all the fixed assets of the company.

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Suresh and Associates

Chartered Accountants

Address :

3A, Big Jo’s Tower, Netaji Subhash Place, New Delhi 110034, India

 

 

Internal Auditor:

 

Name :

B.L. Khandelwal and Company

Chartered Accountant

Address :

1, Doctor’s Lane, Gole Market, New Delhi-110001, India

 

 

Memberships :
  • The Plastic Promotion Council
  • Indo Arab Chamber of Commerce
  • APEDA

 

 

 

Associates/Subsidiaries :
  • AMD Estates and Developers Private Limited

CIN No.: U45201DL2005PTC143397

 

  • Prime Techno Build Private Limited

CIN No.: U45201DL20054PTC143402

Line of Business: Diversification into Real Estate Sector.  The company has created its land bank in Rewari, Gurgaon ad other places. 

 

 

Group Company:

AMD Financial Services Limited

Line of Business: AMD Group has adopted an integrated approach to cater to the needs of the Textile Market.  The group is setting up an integrated Textile Park with spinning, processing, weaving and yarn dying infrastructure.  The second phase of the project would be to incorporate garmenting and home textiles market.

 

Total cost of project is Rs. 3000.000 Millions and is completing execution by June 2009.

 

CAPITAL STRUCTURE

 

As on 31.03.2008

 

Authorised Capital :

No. of Shares

Type

Value

Amount

25000000

Equity Shares

Rs. 10/- each

Rs. 250.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

19166749

Equity Shares

Rs. 10/- each

Rs. 191.667 Millions

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

191.667

191.667

90.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

834.566

894.015

218.888

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1026.233

1085.682

308.888

LOAN FUNDS

 

 

 

1] Secured Loans

407.468

302.007

394.009

2] Unsecured Loans

20.455

72.520

65.324

TOTAL BORROWING

427.923

374.527

459.333

DEFERRED TAX LIABILITIES

46.276

47.449

52.356

 

 

 

 

TOTAL

1500.432

1507.658

820.577

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

710.542

476.119

481.347

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

56.213

559.125

1.193

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
153.725

170.717

198.466

 

Sundry Debtors
123.776

166.983

149.429

 

Cash & Bank Balances
39.190

23.810

30.816

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
632.548

313.697

66.315

Total Current Assets
949.239

675.207

445.026

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
216.587

249.736

95.469

 

Provisions
0.000

28.435

11.920

Total Current Liabilities
216.587

278.171

107.389

Net Current Assets
732.652

397.036

337.637

 

 

 

 

MISCELLANEOUS EXPENSES

1.025

75.378

0.400

 

 

 

 

TOTAL

1500.432

1507.658

820.577

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

775.709

685.057

702.200

Other Income

73.841

30.689

7.900

Total Income

849.550

715.746

710.100

 

 

 

 

Profit/(Loss) Before Tax

43.969

27.478

51.200

Provision for Taxation

11.706

1.979

10.700

Profit/(Loss) After Tax

32.463

25.499

40.500

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

43.567

8.550

NA

 

 

 

 

Imports :

 

 

 

 

Raw Materials

134.504

102.799

NA

 

Component and Spare Parts

1.941

1.796

NA

 

Capital Goods

88.256

0.398

NA

 

Purchase of Trading Goods

41.071

0.000

NA

Total Imports

265.772

104.993

NA

 

 

 

 

Expenditures :

 

 

 

 

Cost of Goods sold

224.891

131.184

0.000

 

Manufacturing Expenses

67.685

73.557

20.800

 

Administrative Expenses

47.167

35.927

34.800

 

Raw Material Consumed

321.707

340.669

466.600

 

Power and Fuel Cost

0.000

0.000

42.800

 

Employee Cost

0.000

0.000

22.300

 

Increase/(Decrease) in Finished Goods

24.230

[2.901]

[3.400]

 

Financial Expenses

50.773

54.954

42.900

 

Selling and Distribution Expenses

31.115

18.640

0.000

 

Depreciation

37.716

35.197

31.800

 

Miscellaneous expenses written off

0.297

1.041

0.300

Total Expenditure

805.581

688.268

658.900

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2008

30.09.2009

 Sales Turnover

 

284.700

120.900

 Other Income

 

9.200

9.900

 Total Income

 

293.900

130.800

 Total Expenditure

 

211.700

103.800

 Operating Profit

 

82.200

27.00

 Interest

 

19.100

14.700

 Gross Profit

 

63.100

12.300

 Depreciation

 

13.300

9.700

 Tax

 

3.700

3.200

 Reported PAT

 

46.100

[0.600]

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

PAT / Total Income

(%)
3.82

3.56

5.70

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
5.67

4.01

7.29

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.65

2.39

5.53

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.04

0.03

0.17

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.63

0.60

1.83

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
4.38

2.43

4.14

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History:

 

Subject was originally incorporated as Ashoka Metal Decor Private Limited The name of the Company was changed to AMD Metplast Private Limited and a Fresh Certificate of Incorporation consequent to change of name was granted to the company on 27th August, 2004.

 
The Company subsequently became a public limited company and the fresh certificate of incorporation was granted to the Company on 2nd June, 2006 consequent to change of name to AMD Metplast Limited. 

 
M/s AMD Metplast Limited was incorporated with a prime objective to manufacture and deal in all kind of packaging containers and related products. The Company started its first plant in 1986 and subsequently second plant in the year 1989. Subsequent to the approval of its products by number of clients the Company again expanded its manufacturing base by setting up the third unit in the year 1995 and expanded the same in the year 2000. The Company later ventured in the pre-forms manufacturing in the year 2002 by setting up the first line and second line in the year 2003. The Company in the year 2004 imported the complete crown manufacturing plant from Italy and installed the same at Neemrana, Rajasthan.

 

Operations Review:

 

During the year the Company registered a total turnover and other income of Rs. 825.319 Millions as compared to previous year's turnover and other income of Rs. 718.646 Millions which is up by 15%. The Company registered a net profit of Rs. 32.463 Millions as compared to net profit of Rs. 25.499 Millions in the previous year, a growth of 27%. During the year, it was difficult for the Company to achieve the targeted sales and the margins because of competition in the market, increased rate of inflation, increase in cost of raw materials, adverse pricing policy of the customers of the Company, etc. However, in terms of the expansion plans of major customer of the Company i.e. Coca Cola India and overall expectation of growth in the packaging business of the country the company expects better turnover and profits in the years to come.

 

The Company has completed its expansion programme of setting up of its fresh PET line to manufacture PET Preforms at Ghaziabad, Uttar Pradesh, which has resulted in increase of the capacity of the Company in the area of manufacturing of PET Preforms by 2700 MTs per annum. Further the machinery for the said expansion has been procured from M/s. Krauss-Maffei, Germany, who are the world wide leaders in manufacture of beverage packing machines. The said expansion of PET Preforms has helped the Company to meet the increased demands of its major Clients.

 

The Company approached the shareholders for seeking their approval with respect to inclusion of main objects relating to Real Estates Business, Textiles Business and other allied businesses by way of Postal Ballot. The shareholders had made their concurrence by authorizing the Company to venture into the proposed line of businesses vide the Postal Ballot Result declared on 25'h October, 2007. Pursuant to inclusion of the said new objects in the main objects of the Memorandum of Association of the Company, the Company changed its name from AMD Metplast Limited to AMD Industries Limited with the approval of the shareholders of the Company and also with the approval of the Office of Registrar of Companies, New Delhi. The approval of the shareholders was obtained through Postal Ballot Route vide result declared on 25th October, 2007.

 

Because of acute competition in the industry and in order to look for opportunities having better margins the Company has started slowly moving into diversified areas such as Real Estates, Textiles, etc.

 

The Board of Directors has also approved setting up of Company's integrated Textile Unit on Company's industrial land of approximately 26 Acres situated at Distt. Haridwar, Uttarakhand. The Company is in the process of demarcation and getting the land mutated in favour of the Company in the land revenue records maintained by revenue authorities situated at Uttarakhand.

 

Further the Company has entered into a Memorandum of Understanding with its subsidiary AMD Estates & Developers Private Limited, hereinafter referred to as "AMD Estates", for the development of commercial land of approximately 5 Acres situated at Gurgaon, Haryana owned by AMD Estates. Further, AMD Estates is in the process of negotiating with established builders/developers on collaboration basis for the development of the said commercial land. Pursuant to the said Memorandum of Understanding the Company shall be entitled to 50% rights in the said land.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

The Company maintained its place in terms of Country's share for providing packaging range to the soft drinks and other beverages industry. Due to logistical convenience, the trend of public remained shifted from glass bottles to PET bottles during the year.

 

The Company continued catering to the packaging needs of Beverages Industry of the country by way of supplying packaging for carbonated soft drinks (CSD), mineral waters, beer and other alcoholic beverages, juices, sauces, ready-to-drink milk products etc. Major chunk of Company's supply remained to Cold Drinks Industry which is growing at about 7% per annum and alcoholic beverages industry mainly beer which is growing at a rate of about 10% per annum. New market segments such as fruit juices, milk products, edible oil and other cosmetics items are slowly moving to packaging items which the Company is capable of manufacturing. Accordingly, the Company expects development of new market segments in the years to come. Pursuant to diversification activities of the Company, the Company has acquired approximately 26 acres of industrial land at Distt. Haridwar, Uttarakhand for setting up of its integrated textile unit.

 

Further, the Company has entered into a Memorandum of Understanding with its subsidiary AMD Estates & Developers Private Limited for development of commercial land of approx. 5 acres situated at Gurgaon, Haryana.

 

INDUSTRY SECTORS

 

PACKAGING

 

The packaging industry supplying packing solutions to beverages industry are mainly divided into two formats viz., glass bottles and PET Bottles. Glass bottles of the Packaging industry are divided into two segments viz., glass bottles and Crown caps which are mainly used as metallic closures for various edible items packed in glass bottles e.g. Carbonated Soft Drinks, Beer, Juices, Sauces, Ready-to-drink Milk products etc.

 

PET Preforms are also divided into two segments viz., Plastic Closures and PET Preforms. Plastic Closures are mainly used in plastic bottles like CSD PET Bottles for mineral water and juices. The requirements of closures with respect to design and quality depend upon the need of the end-user. PET Bottles required by the Beverages Industry are being manufactured & supplied by the Packaging Industry in Preforms shapes and being blown up by the Beverages Industry at the time of filling beverages in the Preforms. Various other end-users have started using plastic bottles as packaging medium. The usage of PET Bottles continued the increasing trend in the products like edible oil, personal care products, Pharmaceuticals and confectionery industry. The usage of PET Bottles in Beverages Industry catering alcoholic needs of the customers is being seen in a positive note.

 

TEXTILES

 

The Government of India has introduced various schemes including TUFs for promoting domestic Textile production. There are immense manufacturing opportunities available in the Country within the textile industry.

 

Pursuant to approval of the shareholders of the Company authorizing Company to start the business of manufacturing textile products, the Company has acquired land at Distt. Haridwar, Uttarakhand for setting up of its integrated textile unit and presently is in the process of considering, reviewing, analyzing and finalizing the product line and other ancillaries keeping in view the various threats and opportunities available in the market.

 

REAL ESTATES

 

After the opening of Foreign Direct Investment by the Government of India in the Real Estate Sector, there was a robust growth in the infrastructure of the country. Almost all the reputed builders and developers in the different parts of the world are eyeing India as a growth potential opportunity. Many developers have already launched their state of the art project in different parts of the country. Since India being a fast developing economy, the Company has also considered the real estates sector a great opportunity.

 

There are two segments within Real Estates Sector viz., (1) Residential; and (2) Commercial. The Company to start with has acquired rights to the extent of 50% for development of commercial land of approx. 5 acres owned by Company's subsidiary AMD Estates & Developers Private Limited The Company is committed through its subsidiary the high class construction on the said land whether by own or through collaboration/joint venture. Since the land is commercial the same will cater to the needs of commercial users only. Company is planned to unphase and unlock other land banks available within the Group on appropriate time depending upon the maturity potential of the particular land bank.

 

OUTLOOK

 

PACKAGING

 

The Overall Beverage Packaging Industry is growing at over 10% per annum. The continued trend of shifting customer base from glass bottles to PET Bottles is being seen in a positive note in terms of completion of Company's expansion of setting up of its fresh line of PET Preforms at its existing Ghaziabad facility. The said expansion has resulted in the increase of the Company's PET Preforms capacity by 2700 MTs per annum.

 

Segment Wise/ Product Wise Review

 

CROWNS CAPS

 

The crown market continued undergoing the negative growth in CSD market due to the fact that the dependence on the usage of glass bottles has been steadily coming down and more and more products are being packed in the PET Bottles. The usage of glass bottles has been decreasing due to inconvenience in handling, transportations, maintenance of hygienic conditions, wastage & breakages, higher cost of glass bottles and majority of glass bottles are not recycled etc.

 

AMD remained one of the dominant players in the crown caps market having 15% market share during the year.

 

PLASTIC CLOSURES

 

During the year as well the plastic closure market has shown the growth trend due to continuous increased usage of PET Bottles. The organized market is still dominated by the CSD but it is expected that other usage will also form significant share of the over all market.

 

Currently, AMD's market share is over 18% in case of CSD segment. The demand of plastic closures will increase in segments where PET Bottles are gaining foothold as packaging media like water, juices, edible oil etc.

 

PET PREFORMS

 

The Company's market share in PET market stood at approx. 12%. The packaging Industry in PET segment has been growing by over 25% thereby with expansion of Company's capacity by 2700 MTs per annum, the Company is expecting substantial increase in the top line of the Company in the years to come.

 

TEXTILES

 

Although in totality the textiles sector in the country is not running through good phase, but still there are immense opportunities available in the country for manufacturing of various products. Further, pursuant to the policy of the Government of India also there are various schemes available such as TUFs for technology up gradation in a spirit to provide support to Indian Textile Industry for making Indian products competitive with global production.

 

In a pursuit to achieve the overall objective of the Company, the Company is expecting Textile Sector as an opportunity which will open up new doors for the Company. In this regard, the Company has already acquired land at Distt Haridwar, Uttarakhand for the purpose of setting up of its integrated textile unit and presently in the process of demarcation and mutation of land in favour of Company's name in the revenue records maintained by the Revenue Authority at Uttarakhand.

 

REAL ESTATES

 

Post opening of FDI in real estates sector in the country various reputed builders and developers present in different countries are looking at India as a huge potential market. Few have already taken up projects in India i.e. Emaar of Middleeast.

 

Accordingly, infrastructure development activities in India are in robust growth. To look for its pie of share in the real estates sector the Company has started slowing moving this area of business. To start with the Company has acquired rights to the extent of 50% for development of commercial land of approx. 5 acres owned by Company's subsidiary AMD Estates & Developers Private Limited Though the overall real estates market of the country is in correction mode, but since the Company's subsidiary acquired the said commercial piece of land in Gurgaon at a right time and as the Company's subsidiary is in active talks with some established builders/developers for the development of the said land on collaboration basis, the Company expects to earn good profit in the said sector. Further, in future the Company expects to unlock other prime land banks available within the Group. The Company, therefore, considers its real estates activities as a platform for a road map for reaching to the status of established corporate house.

 

Risk and Concerns

 

PACKAGING

 

Continued shifting of customer base from glass bottle to PET Bottles remained cause of concern for the Crown Division of the Company. Further, increase in raw material cost and squeeze of margins by the end customers have frightened the profitability of packaging industry in totality. The Company is likely to be affected by change in governmental policies as it may affect the usage of end products.

 

However, the Company has established itself as quality supplier to its clients and is accepted as reliable player in the industry thereby not only retaining its base but increasing it as well.

 

TEXTILES

 

Because of increased cost of various inputs like power, fuel, etc. the Company feel concerned. Further the selection of a choice of appropriate product range based on various studies including availability of markets, etc. is the other present concern area. The said studies have not so far been finalized.

 

REAL ESTATES

 

The Company is concerned about the liquidity crunch in the real estate market of the country and continuous increase in rate of interest which may primarily be the hindrance in the negotiations/talks between the Company's subsidiary and the estabilished builders/developers for the development of commercial land situated at Gurgaon, Haryana. It is expected that the liquidity crunch is for a short term period and expected that the same will moderately improve in the near future.

 

Contingent Liabilities Not Provided For:

 

 

Fixed Assets:

 

 

 

AS PER WEBSITE

 

Profile:

 

AMD Group is a conglomerate of a group of companies engaged primarily in the manufacturing of packaging articles being used in soft drinks, Beverages, water, beer, liquor and pharmaceutical industries.

 

They are the only company in India with a complete one stop shop solution for the entire carbonated soft drink market.

 

With humble beginning in 1958 as a trading company, the group is now India ’s top Beverage packaging company supplying finished products to MNC’s like Coca Cola, Pepsi, South African Breweries (SAB), United Breweries(UB) Dabur, HLL, etc. as well as numerous large indigenous beverage Pharma and health care companies.

 

Board of Directors:

 

Mr. H.S. Gupta  (Executive Chairman)

 

Mr. H.S. Gupta, one of the founder promoters, has been associated with the packaging industry for more than 47 years.  Mr. H.S. Gupta is holding Directorships in various other Companies. Mr. H.S. Gupta has played a vital role in the growth of the company.

 

Mr. Ashok Gupta  (Managing Director)

 

Mr. Ashok Gupta is on the Board of t he Company since its incorporation and managing its day to day affairs since its incorporation in the year 1983.  Mr. Ashok Gupta, a Bachelor of Science, is the son of Mr. H.S. Gupta.  Mr. Ashok Gupta is associated with the packaging industry since 1974.  He started his business under one firm i.e. Shyam Industries which was engaged in the business of manufacturing of pilfer proof Aluminum caps mainly used by liquor industry

 

Mr. Adit Gupta  (Whole Time Director)

 

Mr. Adit Gupta, son of  Shri Ashok Gupta, joined the Board of the Company since June, 2006. Mr. Adit Gupta, alumnus of Virginia and Boston Universities, USA, did his Chemical Engineering from Virginia and MBA (Finance) from Boston.  He also did his training module at Sacmi, Italy to get first hand experience of beverage packaging trends and know-how in plastics and crowns manufacturing.  Mr. Adit Gupta looks after business development and strategic planning function of the Company.

 

Mr. Mahipal Ahluwalia (Independent Director)

 

Mr. Mahipal Ahluwalia is the renowned Supreme Court Lawyer.  He is into diversified litigations of Supreme Court and High Courts for the last 30 years.

 

Mr. Seshadri Ratnam (Independent Director)

 

Mr. Seshadri Ratnam, a Science Graduate in Physics and a FCA from The Institute of Chartered Accountants of England & Wales, London, U.K, has over 35 years of rich experience in Corporate Laws, Finance and Taxation.   He also held the position of Director Finance of Uttaranchal Jal Vidyut Nigam Limited.  He also served as Director Finance in Bharti Telecom.

 

 

 

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

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions