MIRA
INFORM REPORT
|
Report Date : |
27.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RAINBOW PAPERS LIMITED |
|
|
|
|
Registered Office : |
801, Avdesh House, 8th Floor, opposite Guru Gobind Gurudwara, Gandhinagar-Sarkhej
Highway, Thaltej, Ahmedabad – 380 054, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
04.07.1986 |
|
|
|
|
Com. Reg. No.: |
008772 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L21010GJ1986PLC008772 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
AHMR00278F AHMR03475D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACR5415K |
|
|
|
|
Legal Form : |
A public limited liability company.
The company’s shares are listed on the Stock Exchanges |
|
|
|
|
Line of Business : |
Manufacturer of three different grades of speciality paper - Kraft
Paper, Crepe and Coated Paper. |
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 3024000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. Financial position is good. Payments are reported as slow
but correct. However, the company can be considered good for normal business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
801, Avdesh House, 8th Floor, opposite Guru Gobind Gurudwara,
Gandhinagar-Sarkhej Highway, Thaltej, Ahmedabad – 380 054, Gujarat,
India |
|
Tel. No.: |
91-79-26855714/ 26855716 |
|
Mobile No.: |
91-9879605439 |
|
Fax No.: |
91-79-26855712 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
1453, Village Rajpur, Tal: Kadi, Kalol – mehsana Highway – 382 715,
North Gujarat, India |
|
Tel. No.: |
91-2764-278492 |
|
Mobile No.: |
91-9879605436/ 37 |
|
Fax No.: |
91-2764-278516 |
|
E-Mail : |
|
|
|
|
|
Coating Division : |
1423, Village Rajpur, Tal: Kadi, Kalol – mehsana Highway – 382 715,
North Gujarat, India |
|
Telefax No.: |
91-2764-278413 |
|
Mobile No.: |
91-9879605440 |
|
E-Mail : |
|
|
|
|
|
Branch Office : |
Mumbai: Delhi: Tel: 91-11-23245756 Fax: 91-11-23287553. |
DIRECTORS
|
Name : |
Mr. Radheshyam N. Goenka |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Ajay R. Goenka |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mrs. Sangeeta A. Goenka |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. O.P. Goyal |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Mahendra Jindal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C.M. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kalpesh Oswal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shankarlal Heda |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Runel Rathi |
|
Designation : |
Company Secretary |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of three different grades of speciality paper - Kraft
Paper, Crepe and Coated Paper. |
||||||
|
|
|
||||||
|
Products : |
|
PRODUCTION STATUS As on 31.03.2008
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Paper |
MT |
120000 |
90000 |
81129.43 |
|
|
|
|
|
|
GENERAL
INFORMATION
|
No. of Employees : |
About 800 |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Facilities : |
Secured Loans :
Unsecured Loans :
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Pravin M. Shah and Company Chartered Accountants |
|
Address : |
Ahmedabad |
|
|
|
|
Associates/
Subsidiaries : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7208005 |
Equity Shares |
Rs.10/- each |
Rs.72.080
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 |
72.080 |
54.693 |
54.700 |
|
|
2] Convertible Warrents |
0.000 |
210.000 |
0.000 |
|
|
3] Reserves & Surplus |
532.684 |
251.938 |
179.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
604.764 |
516.631 |
234.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1411.657 |
695.539 |
449.500 |
|
|
2] Unsecured Loans |
132.774 |
11.269 |
23.300 |
|
|
TOTAL BORROWING |
1544.431 |
706.808 |
472.800 |
|
|
DEFERRED TAX LIABILITIES |
169.473 |
119.393 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2318.668 |
1342.832 |
707.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1343.009 |
799.932 |
555.300 |
|
|
Capital work-in-progress |
835.591 |
158.740 |
101.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.304 |
0.304 |
0.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
137.959
|
118.927 |
101.800 |
|
|
Sundry Debtors |
218.040
|
196.126 |
122.200
|
|
|
Cash & Bank Balances |
63.746
|
6.328 |
8.400 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
252.286
|
231.709 |
32.600 |
|
Total
Current Assets |
672.031
|
553.090 |
265.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
491.981
|
128.507 |
192.300
|
|
|
Provisions |
40.286
|
40.727 |
22.400 |
|
Total
Current Liabilities |
532.267
|
169.234 |
214.700 |
|
|
Net Current Assets |
139.764
|
383.856 |
50.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2318.668 |
1342.832 |
707.200 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
1702.169 |
1467.457 |
1437.500
|
|
|
Other Income |
5.992 |
38.564 |
5.300 |
|
|
Total Income |
1708.161 |
1506.021 |
1442.800 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
178.968 |
135.606 |
74.900 |
|
|
Provision for Taxation |
50.602 |
52.908 |
15.800
|
|
|
Profit/(Loss) After Tax |
128.366 |
82.698 |
59.100 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
418.258 |
75.610 |
NA |
|
Total Earnings |
418.258 |
75.610 |
NA |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
237.192 |
211.352 |
NA |
|
|
Stores & Spares |
1.771 |
1.858 |
NA |
|
|
Others (Chemical) |
19.802 |
40.451 |
NA |
|
Total Imports |
258.765 |
253.661 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
|
|
|
|
|
Manufacturing Expenses |
518.118 |
518.201 |
202.200 |
|
|
Administrative Expenses |
NA |
NA |
94.300 |
|
|
Raw Material Consumed |
811.947 |
705.953 |
667.600 |
|
|
Purchases made for re-sale |
23.938 |
0.000 |
NA |
|
|
Excise Duty |
NA |
NA |
132.300 |
|
|
Increase/(Decrease) in Finished Goods |
(2.263) |
7.491 |
(1.500) |
|
|
Employee Cost |
NA |
NA |
49.600 |
|
|
Miscellaneous Expenses |
NA |
NA |
1.600 |
|
|
Interest |
58.963 |
37.903 |
37.200 |
|
|
Power & Fuel |
NA |
NA |
110.400 |
|
|
Depreciation & Amortization |
118.490 |
100.867 |
74.200 |
|
|
Other Expenditure |
177.453 |
1370.415 |
1370.9 |
|
Total Expenditure |
1529.193 |
1370.415 |
1367.900 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
30.09.2008 |
|
Type |
1st
Quarter |
2nd Quarter |
|
Sales Turnover |
574.900 |
642.500 |
|
Other Income |
8.900 |
10.300 |
|
Total Income |
583.800 |
652.800 |
|
Total Expenditure |
478.400 |
528.100 |
|
Operating Profit |
105.400 |
124.700 |
|
Interest |
11.900 |
18.400 |
|
Gross Profit |
93.500 |
106.300 |
|
Depreciation |
40.600 |
47.200 |
|
Tax |
1.700 |
1.100 |
|
Reported PAT |
51.200 |
58.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
2.47
|
2.18
|
2.13 |
|
Long Term Debt Equity Ratio |
1.79
|
1.45
|
1.38 |
|
Current Ratio |
0.67
|
0.74
|
0.70 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.16
|
1.49
|
1.72 |
|
Inventory |
14.22
|
14.76
|
14.27 |
|
Debtors |
8.82
|
10.24
|
12.20 |
|
Interest Cover Ratio |
3.72
|
3.61
|
3.01 |
|
Operating Profit Margin (%) |
19.74
|
15.21
|
12.96 |
|
Profit Before Interest and Tax Margin (%) |
13.25
|
9.02
|
7.80 |
|
Cash Profit Margin (%) |
13.40
|
10.16
|
9.27 |
|
Adjusted Net Profit Margin (%) |
6.92
|
3.97
|
4.11 |
|
Return on Capital Employed (%) |
15.30
|
17.08
|
17.09 |
|
Return on Net Worth (%) |
27.72
|
23.88
|
28.16 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject was incorporated in Jul.'86 and promoted by R S Goenka and Ajay Goenka, is an Ahmedabad-based manufacturer of three different grades of speciality paper - kraft paper, crepe and coated paper. To increase the capacity utilisation, the company is installing a new boiler and a steam turbine of 1500 kva. It is having four manufacturing facilities in Gujarat.
Crepe paper is mainly used in durable and flexible bag packing, and kraft and
coated paper (including art and chromo) also find application in the packaging
and printing industry.
Rainbow exports coated paper to Nepal and Bhutan and plans to export kraft paper
and duplex boards to the Gulf countries. It has completed a
technology-cum-upgradation programme for manufacturing duplex boards (cap.:
6000 tpa).
The Company completed the Technology Upgradation-cum-Modernisation at the Paper
Plant in the first quarter of 1999 by installing "Quality Plus
System" from M/s Honeywell Measurex Asia Inc, U.S.A. and also installed
other balancing equipment.
DIVIDEND:
The Directors are to recommend a Dividend @ 16% on the Paid-up Equity Share Capital of the Company for the year ended 31st March 2008. The Dividend, if approved at the Annual General Meeting of the Company, will be paid to those shareholders whose name appears on the Register of Members as on the date of book closure i.e. 14th September, 2008.
The total payment on dividend (including Corporate dividend tax thereon of
Rs.1.960 millions will be Rs.13.493 millions as compared to the total pay out
of Rs. 10.238 millions in the previous year.
REVIEW OF OPERATIONS:
The directors are to inform that the company has achieved a production of 81
129.43 M.T. as compared to 75744.60 M.T. in previous year.
The gross turnover made is Rs.2000.300 millions as compared to Rs.1800.412 millions in the previous year. The net profit earned by the company during the current year is Rs.126.278 millions as compared to Rs.82.487 millions in the previous year. A balance of Rs.256.977 millions has been carried forward to the Balance Sheet for the next year.
STATUS OF EXPANSION PROGRAMME:
During the year, the company has taken up modernization of the existing plant and machinery, installation of additional 10MW co-generation captive power plant, and acquisition of paper machine from MD Papier, Dachau, Germany. The highlights of the same are as under:
(1) Modernisation of the existing plant and machinery:
a. During the year, the company has rebuilt two paper machines by overhauling, shifting the machines at the new place within the factory premises which has resulted into enhancement of production from 15,000 M.T p.a. to 22,000 M.T. p.a. with quality acceptable in domestic as well as international market.
b. The company has also undertaken modernisation and upgradation of pulp mill, de-inking water pollution control plant and solid waste chemical recycling plant to balance the enhanced production.
(2) Installation of 10MW Co-generation Captive power plant:
The company has successfully installed 10MW co-generation captive power plant for which trial production has been taken on 31st March, 2008. The FBC Boiler (part of the Power Plant) has been successfully commissioned by the company on 27th February, 2008. The power generated from the said power plant will be sufficient to cater the requirement of power and steam for the new machine.
(3) Acquisition of paper plant from MD Papier, Dachau, Germany:
The company has acquired paper plant from Germany which will enhance the production capacity to 550 MT per day. The process of dismantling work of the paper plant is going on in full swing and almost 90% of the equipment as already arrived at the site. The company has taken necessary steps to complete the installation work at the existing site during the year and the erection work is expected to be completed by September, 2008.
EXPORTS AND IMPORTS
The company exported 23288.63 M.T. of paper during the year as compared to
5315.12 M.T. in the previous year. The exports accounted to 28.75% of total
sales. The exports proceeds amounted to Rs.502.289 millions as compared to
Rs.125.096 millions during the previous year. The company's products are now
being exported to over 21 countries.
The company imported 20278.07 M.T. of waste paper and 643.80 M.T. of chemical
during the year as compared to 21204.71 M.T. and 1150.41 MT respectively in the
previous year. The imports amounted to Rs.237.192 millions of waster paper and
Rs.19.802 millions of chemicals as compared to Rs.211.352 millions and 40.451
millions respectively in the previous year. The company has been awarded as 2nd
largest importer at ICD Sabarmati by M/s. Container Corporation of India
Limited for four consecutive years.
INCREASE IN PAID-UP SHARE CAPITAL OF THE COMPANY
During the Year, The Company had issued fully paid 17.38.755 Equity Shares
having face value of Rs.10/-each in lieu of the Convertible Warrants in the Board
Meeting held on 16th October, 2007. With the issue of said equity shares, the
paid up capital of the company has increased from Rs.54.693 millions
(consisting of 54,69,250 equity shares of Rs.10/- each) to Rs.72.080 millions
(consisting of 72,08,005 equity shares of Rs.10/- each).
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
COMPANY'S PERFORMANCE AND FUTURE OUTLOOK
During the year, the company has taken up modernization of the existing plant and machinery, installation of additional 10MW co-generation captive power plant, and acquisition of paper machine from MD Papier, Dachau, Germany. The highlights of the same are as under:
Modernisation of the existing Plant and Machinery:
During the year, the company has rebuilt two paper machines by overhauling, shifting the machines at the new place within the factory premises which has resulted into enhancement of production from 15,000 M.T. p.a. to 22,000 M.T. p.a. with quality acceptable in domestic as well as international market.
The company has also undertaken modernisation and upgradation of pulp mill,
de-inking water pollution control plant and solid waste chemical recycling
plant to balance the enhanced production.
Installation of 10MW Co-Generation Captive Power Plant:
The company has successfully installed 10MW co-generation captive power plant
for which trial production has been taken on 31st March, 2008. The FBC Boiler
(part of the Power Plant) has been successfully commissioned by the company on
27th February, 2008. The power generated from the said power plant will be
sufficient to cater the requirement of power and steam for the new
machine.
Acquisition of Paper Plant from MD Papier, Dachau, Germany:
The company has acquired paper plant from Germany which will enhance the
production capacity to 550 MT per day. The process of dismantling work of the
paper plant is going on in full swing and almost 90% of the equipment as
already arrived at the site. The company has taken necessary steps to complete
the installation work at the existing site during the year and the erection
work is expected to be completed by September, 2008.
Exports:
The present exports are almost 30% of their total production. Their products
are presently being exported to Africa, Middle East, South East Asia, U.S.A.,
U.K., France, and Indonesia. Company is making efforts to cater more and more
of foreign markets in the near future. The total exports sales for the F.Y.
2007-08 is Rs.502.288 millions.
With the completion of expansion, the company would also be in a position to
manufacture new products i.e newsprint and writing paper, which has a very high
demand in the market. Thus, Rainbow would be in a position to manufacture not
only speciality paper but also writing paper which is used in day to day
activities in very large quantum.
Contingent
Liabilities not provided for:
|
|
As on 31.03.2008 Rs. In Millions |
|
Bank Guarantee |
11.811 |
|
Bills Discounted |
-- |
|
Additional Premium
on Land |
1.878 |
|
Export Obligation in
respect of Custom Duty on machinery imported under EPCG Scheme. |
396.136 |
FIXED ASSETS;
Land
Factory Building
Tubewell
Office Building
Plant and Machinery
Electrical
Installation
Workshop Equipment
Laboratory Equipment
Office Equipment
Computers
Air Conditioner
Vehicles
Furniture
WEBSITE DETAILS:
Rainbow, today is one of the fastest growing corporations in the Indian Paper Industry. Not only that, RPL has marked its presence in the global market and is currently exporting its products to various countries in the US, Middle East, South Africa, South East Asia and U.K. They offer a plethora of world class products ranging from Duplex to File Board, from writing paper to Art Card and from packaging and Electric grade crepe to Decorative tissues crepe, have given them a good recognition amongst their users whose thirst for better and new products.
Rainbow does not only aim at manufacturing quality products but also has a wide network of professional dealers and suppliers who strive to make sure their products reach their customers wherever they are.
Today the markets are getting increasingly competitive; but RAINBOW has always adhered to its philosophy of ‘Ouality and Customer comes first' while facing competition. ‘Quality Conciousness along with Cost Competitiveness' has become an obsession with Rainbow. This helps them enjoy Customer loyalty as well as an increasing Market Share. Rainbow is also accredited with ISO 9001, 14001 and OHSAS 18001.
Rainbow's Quality, Creativity, Market Awareness and Financial strength helps in taking correct decision's and profitable actions for the market they serve and also gives them stability in the Stock Market.
Rainbow, essentially a ‘Customer Centric Organization', always puts its valued Customers in the centre of all the decisions. As a knowledge – driven Organization, a lot of emphasis is laid on new product development, quality improvement and cost cutting methods, thus providing to its clients ‘Quality Products with Brilliant Results'. At Rainbow, focus is also laid on creating Stake holder value.
Team Rainbow is also committed to the society. In their quest to serve the needy, its Chairperson and other Directors have joined hands with different trusts which are running schools, hospitals and homes for senior citizens, thus fulfilling their duties towards the upliftment of the society.
Rainbow has a dedicated Research and Innovation Team, working day and night to achieve the organization's objectives and take the organization to far reaching heights.
RAINBOW GROUP:
Rainbow Group has come a long way since its inception in 1981. Their group has 3 units - each specialising in their own brand of Paper and collectively forming the Rainbow Group of Companies.
Rainbow is essentially a ‘Quality and Customer driven organisation'. This commitment towards quality and customers is at the heart of all their operations. Even admidst high competition they donot believe in compromising with their quality and services. Instead they believe in surging ahead of all competition by being known for high-quality products.
This commitment toward quality is reflective in all their divisions.
SUBJECT
Subject is a paper and paper board manufacturing unit with its current production capacity being 90000 TPA. This is expected to rise to 300000 TPA under their current expansion plans which will culminate by the end of the financial year 2007 – 08.
Rainbow exemplifies their motto of ‘Quaility is a habit, not a goal' by using high quality raw material and adherence to strict quality maintenance with the aid of high end technology to manufacture paper which stands out for its quality even in this competitive world.
MASTER COTE
Master Cote is the coating division of the RAINBOW Group with the current production capacity of 12000 TPA. MasterCote brand produces paper which is known for quality print results. Their coated paper is seen with its print results everywhere in their daily life be it cereal boxes, tea-boxes, soap wrappers or even the toothpaste. MasterCote has been flexible in its operations and have successfully catered to their customers varied requirements in GSM and colour.
ORIENT CREPE
Orient Crepe is a creping and dyeing unit which specialising in a diverse range which involves decorative tissue crepe to high grade crepe which is used in electrical transformers and packing of medicines. They also specialise in deep dyeing of paper.
Collectively these divisions form the RAINBOW GROUP known for its varied and quality products and hence they say ‘If it is paper, it is RAINBOW'.
PRODUCT RANGE:
Each unit in the Rainbow Group has its own speciality. All combined, their Product Range includes :
- Paper and Paper Board
- Coated Paper
- Crepe Paper
The paper division has production capacity of 90,000 p.a. and is engaged in manufacturing of :
HWC DUPLEX BOARD
GB / WB / KB 230 – 700 GSM
CAST COATED PAPER and BOARD
COLOUR PAPER and BOARD
MANILA / BRISTOL PAPER and BOARD
MG POSTER PAPER and BOARD
Rainbow Papers has excelled in producing coated / uncoated Manila Paper and Board. Colour File Board is another of their specialities.
They at RAINBOW mainly use Imported and Indian recycled fibre and chemicals of different varieties as raw-materials. They not only believe in quality maintenance in production and output but also use high quality raw material to yield better products.
Their products are mainly used for Industrial Use and Packing Purposes . Packaging of many every - day consumer products like toothpaste, butter, notebooks and other stationary
The company's Coating Division under the Brand name – 'Master Cote' has a production capacity of 12000 tons per annum. They are mainly engaged in production of
FLUORESCENT / NON FLUORESCENT PAPER and BOARD
COATED PAPER (CHROMO and ART)
COATED PAPER OFFLINE
Their coated paper products are regularly used for:-
Magazines, Brochures, Annual reports etc.
Book covers, leaflets.
Fancy gift bags, greeting cards, Invitation cards.
Pharmaceuticals packing and boxes.
Soap wrappers
Display boards, hoardings, sticker etc
Essentially a conversion unit; their Crepe division has a capacity of 1800 T.P.A.
Their main products are
CREPE PAPER
TISSUE CREPE
ELECTRIC GRADE PAPER
The paper processed at ORIENT CREPE is mainly used for high quality packing. The tissue crepe is solely meant for the decorative use and Electric grade paper is used in manufacturing Transformer and Cables. Their absorbent varieties are used by many government and private bodies for seed testing and germination.
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.49.85 |
|
UK Pound |
1 |
Rs.76.60 |
|
Euro |
1 |
Rs.64.68 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|