MIRA
INFORM REPORT
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Report Date : |
21.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
MARVEL INDUSTRIES LIMITED |
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Registered Office : |
A-6, Midc Sinnar Industrial Area, Ma.Legaon, Sinnar, Nasik-422113. Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.02.1992 |
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Com. Reg. No.: |
065247 |
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CIN No.: [Company
Identification No.] |
U28129MH1992PTC065247 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKM02028F |
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Legal Form : |
Public Limited Liability Company. Company's Shares are listed on the
Stock Exchanges |
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Line of Business : |
Manufacturer of HDPE/PP Woven Sacks/Bags and HDPE/PP Woven
Sacks/Bags |
RATING &
COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Sick Unit |
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Payment Behaviour : |
Slow |
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Comments : |
Subject is a sick unit and has been referred to the BIFR. Its network has
been eroded. Payments are reported as slow and delayed. The company can be considered for any business dealings on fully and
secured trade terms only. |
LOCATIONS
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Registered Office/Factory : |
A-6, Midc Sinnar Industrial Area, Ma.Legaon, Sinnar, Nasik-422113. Maharashtra |
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Tel. No.: |
91-2551-230761/230861/230961 |
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Fax No.: |
91-2551-230962 |
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Corporate Office : |
Unit No. 2, 1st Floor, Mahalaxmi Industrial Estate, Gandhi Nagar,
Lower Parel (West), Mumbai – 400013 |
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Tel. No.: |
91-22-24970748 |
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Fax No.: |
91-22-24970756 |
DIRECTORS
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Name : |
Mr. Vikram Saboo |
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Designation : |
Chairman cum Managing Director |
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Name : |
Mr. Shailash Saboo |
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Designation : |
Executive Director |
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Name : |
Mr. Sanjiv Mehrotra |
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Designation : |
Director |
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Name : |
Mr. Lalit Tapuriah |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 31.03.2006
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter's Holding |
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Indian Promoters saboo& family |
2121540 |
47.91 |
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Non-Promoters
Holding |
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Mutual Funds and UTI |
800 |
0.01 |
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Others |
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Private Corporate Bodies |
1285230 |
29.02 |
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Indian Public |
985230 |
22.25 |
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NRIs/OCBs |
35000 |
0.01 |
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Total |
4427800 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of HDPE/PP Woven Sacks/Bags and HDPE/PP Woven
Sacks/Bags |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Fabric and Sacks in |
MT |
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5820.000 |
6612.507 |
GENERAL INFORMATION
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No. of Employees : |
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Bankers : |
v Corporation Bank v ICICi Bank Limited v
The South Indian Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Mr. Sanjay Dos! Chartered Accountant |
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Address : |
502, Manavsthal, Gokuldham, Goregaon (East), Mumbai - 400 063. |
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Associates: |
v Marvel Capital
and Finance India Limited v Riviera Polymers
Private Limited |
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Subsidiaries: |
v Niharika Trading
and Investment Limited |
CAPITAL STRUCTURE
AS ON 31.03.2006
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 100.000
Millions |
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10000000 |
Preference Shares |
Rs. 10/- Each |
Rs. 100.000 Millions |
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Total |
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Rs.
200.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4427800 |
Equity Shares |
Rs. 10/- Each |
Rs. 44.278 Millions |
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600000 |
10% Redeemable Cumulative Preference (Redeemable at par on 09.11.2003) |
Rs. 10/- Each |
Rs. 6.000 Millions |
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800000 |
10% Redeemable Cumluative Preference Shares (Redeemable at par on 22.07.2004) |
Rs. 10/- Each |
Rs. 8.000 Millions |
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1000000 |
13.5% Redeemable Cumluative Preference Shares (Redeemable at par on 01.09.1999) |
Rs. 10/- Each |
Rs. 10.000 Millions |
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1000000 |
13.5% Redeemable Cumluative Preference Shares (Redeemable at par on 17.09.1999) |
Rs. 10/- Each |
Rs. 10.000 Millions |
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Total |
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Rs. 78.278 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
78.278 |
78.278 |
78.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
65.602 |
65.602 |
(576.300) |
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4] (Accumulated Losses) |
(683.567) |
(761.212) |
0.000 |
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NETWORTH |
(539.687) |
(617.332) |
(498.000) |
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LOAN FUNDS |
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1] Secured Loans |
538.837 |
694.936 |
611.500 |
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2] Unsecured Loans |
111.643 |
84.844 |
38.000 |
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TOTAL BORROWING |
650.480 |
779.780 |
649.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
110.793 |
162.448 |
151.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
65.773 |
70.719 |
79.800 |
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Capital work-in-progress |
20.333 |
0.000 |
0.000 |
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INVESTMENT |
0.642 |
0.891 |
1.700 |
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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 |
43.580
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69.656 |
64.300 |
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Sundry Debtors |
14.648
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30.388 |
38.000 |
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Cash & Bank Balances |
2.507
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2.627 |
2.500 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
43.124
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50.137 |
24.800 |
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Total
Current Assets |
103.859
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152.808 |
129.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
73.857
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57.888 |
59.600 |
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Provisions |
5.957
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4.082 |
0.000 |
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Total
Current Liabilities |
79.814
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61.970 |
59.600 |
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Net Current Assets |
24.045
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90.838 |
70.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
110.793 |
162.448 |
151.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
501.490 |
585.724 |
346.600 |
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Other Income |
27.596 |
5.155 |
5.000 |
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Total Income |
529.086 |
590.879 |
351.600 |
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Profit/(Loss) Before Tax |
78.019 |
(119.346) |
(183.900) |
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Provision for Taxation |
0.374 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
77.645 |
(119.346) |
(183.900) |
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Earnings in Foreign Currency : |
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Export Earnings |
244.624 |
345.479 |
NA |
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Total Earnings |
244.624 |
345.479 |
NA |
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Imports : |
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Raw Materials |
252.893 |
290.641 |
NA |
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Others |
11.806 |
8.168 |
NA |
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Total Imports |
264.699 |
298.809 |
NA |
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Expenditures : |
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Cost of Goods Sold |
189.173 |
405.991 |
102.200 |
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Manufacturing Expenses |
81.420 |
97.101 |
32.800 |
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Administrative Expenses |
0.000 |
0.000 |
37.500 |
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Raw Material Consumed |
0.000 |
0.000 |
232.100 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
23.100 |
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Power & Fuel |
0.000 |
0.000 |
29.100 |
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Depreciation & Amortization |
10.356 |
11.590 |
15.600 |
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Other Expenditure |
170.118 |
195.543 |
63.100 |
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Total Expenditure |
451.067 |
710.225 |
535.500 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
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Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
127.000 |
158.300 |
105.200 |
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Other Income |
0.800 |
0.000 |
13.900 |
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Total Income |
127.800 |
158.300 |
119.100 |
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Total Expenditure |
134.800 |
167.800 |
115.700 |
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Operating Profit |
(7.000) |
(9.500) |
3.400 |
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Interest |
26.600 |
26.500 |
26.500 |
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Gross Profit |
(33.600) |
(36.000) |
(23.100) |
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Depreciation |
2.800 |
2.800 |
2.800 |
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Tax |
0.100 |
0.100 |
0.100 |
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Reported PAT |
(36.500) |
(38.900) |
(26.000) |
KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
0.00 |
0.00 |
0.00 |
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Long
Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current
Ratio |
0.33 |
0.38 |
0.58 |
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TURNOVER
RATIOS |
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Fixed
Assets |
2.38 |
2.80 |
0.82 |
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Inventory |
9.09 |
8.86 |
2.70 |
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Debtors |
22.88 |
17.36 |
2.09 |
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Interest
Cover Ratio |
(0.67) |
(0.22) |
(1.17) |
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Operating
Profit Margin(%) |
(8.22) |
(1.72) |
(24.15) |
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Profit
Before Interest And Tax Margin(%) |
(10.22) |
(3.67) |
(28.65) |
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Cash
Profit Margin(%) |
(23.48) |
(18.14) |
(48.56) |
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Adjusted
Net Profit Margin(%) |
(25.49) |
(20.10) |
(53.06) |
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Return
On Capital Employed(%) |
(11.00) |
0.00 |
0.00 |
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Return
On Net Worth(%) |
48.47 |
0.00 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
History
Incorporated in the early '90s, Marvel Industries manufactures fabrics and sacks with an installed capacity of 3000 tpa. The company's products are used for packing cement, grains, fertilisers, etc.
The expanded capacity from 1020 tpa to 3000 tpa commenced commercial
production from Sep.'94. Its products have been well accepted in the
market.
It has embarked on an expansion to increase the capacity by 1800 tpa.
Also, it has finalised plans for diversification by setting up a unit to
manufacture cast polypropylene film with a capacity of 2500 tpa.
At the end of the financial year 1999-2000, the networth of the company
has been completely eroded by the accumulated losses and hence the company has
become a sick industrial company and neccesary reference is being filed with
the BIFR.
OPERATIONS
During the year the turnover of the company was Rs. 529.088 Millions
against Rs. 590.880 Millions in previous year 2004-2005. The losses before
extraordinary item have increased from Rs. 1241.94 in previous year 2004-2005
to Rs. 130.822 Millions in the current year 2005-2006. This is due to
increasing raw material prices and higher interest.
EXPORT
During the period the company achieved exports including third party
exports of Rs. 408.454 Millions as compared to Rs. 517.947 Millions in the
previous year.
PREFERENCE
SHARES
The Preference shares under 'Issued, Subscribed & Paid up
includes shares aggregating to Rs. 34.000 Millions are over due and not
redeemed due to absence of profits. No provision has been made for interest on
overdue preference share capital. The amount in this respect has not been
ascertained.
REFERENCE TO HON'BLE
BIFR
The Hon'ble BIFR had declared the company as Sick Industrial Undertaking
under section 17 of Sick Industrial Companies (Special Provisions) Act, 1985.
The revival package prepared by Operating Agency is pending before Hon'ble BIFR
for disposal.
Contingent
Liabilities not provided for
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Bank Guarantees |
1.590 Millions |
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Dividend in arrears on Cumulative Preference shares |
31.472 Millions |
Term loan from financial institution and Assets Reconstruction Company India Ltd. shown under the head "Secured Loans" are secured by way of first mortgage of immovable properties both present and future and hypothecation of movable (save and except book debts), including machinery, spares, tools and accessories, subject to prior charge of banker's on stock of raw materials, Finished goods, stores etc. Pari-passu basis. These are further guaranteed jointly and severally by directors, shareholders and body corporate except Loans from SICOM includes, under ERS of finance Rs.15.000 Millions and interest thereon is secured against specific assets financed & further guaranteed by directors and shareholders.
The loans under working capital limits from banks and Assets Reconstruction Company India Limited shown under the head "secured loans" are secured by hypothecation of stock of raw material, work in process, finished goods, stores & spares and Book debts of the company and second charge on immovable/movable properties of the company and personal guarantee of two directors and body corporate.
The company is incurring losses since 1997-98 and has been referred to Hon'ble BIFR as its net worth is negative. At the . present level of its borrowings the operations of the Company are not viable, however the scheme of revival is pending before Hon'ble BIFR for its approval. The financial statements are prepared on going concern basis.
AS PER WEBSITE DETAILS
The company was incorporated on February 5, 1992 as a public limited company and it was issued certificate of
commencement of business on April 23, 1992 from the Registrar of Companies,
Mumbai, Maharashtra.
The company is
presently engaged in the manufacture of HDPE/PP woven sacks of a total capacity
of 2880 tpa at MIDC, Malegaon Industrial Estate, Sinnar, District Nashik,
Maharashtra.
The company started
the manufacture of HDPE/PP woven sacks in May, 1993 with a capacity of 1020
tpa. The project of the company was
part financed by a public issue of Rs. 3.360 Millions, promoters contribution
of Rs. 12.300 Millions, rupee term loan of Rs. 22.500 Millions from SICOM/ICICI
and state subsidy of Rs. 3.000 Millions.
The company later expanded its capacity to 2880 tpa in September,
1994. The expansion was part financed
by a rights issue of Rs. 15.660 Millions at par, term loan from ICICI/SICOM of
Rs. 45.000 Millions and bridge loan from SICOM of Rs. 1.875 Millions.
During the year 1993-94, the company produced
903 MTs of Polypropylene (PP) woven sacks (including 442 MTs of job work)
indicating almost full capacity utilisation.
During 1994-95, the company produced 1641 MTs of woven sacks (including
37 MTs of jobwork) indicating a capacity utilisation of 82.05%.
For the eleven month period ended February
29, 1996 the company manufactured 2352 MTs of woven sacks indicating a capacity
utilisation of 89.09%.
The total cost of the proposed project was
earlier estimated at Rs.290.000 Millions.
However, there was a cost overrun of Rs. 7.357 Millions in the expansion
project which increased the total project cost to Rs.297.357 Millions. The capital cost of expansion project was
estimated at Rs. 64.400 Millions, which was increased to Rs. 71.757 Millions
and of diversification project is Rs. 132.600 Millions. The commercial production of the expansion
project was delayed by three months and it started in March, 1996. Industrial Credit & Investment
Corporation of India (ICICI) has sanctioned a term loan of Rs. 75.000 Millions
and SICOM has given a sanction of Rs. 35.000 Millions for the proposed project.
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.42.97 |
|
UK Pound |
1 |
Rs.84.75 |
|
Euro |
1 |
Rs.66.72 |
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 |
|