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MIRA
INFORM REPORT
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Report Date : |
20.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
RESINS AND PLASTICS LIMITED |
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Registered Office : |
A-8, Marol Industrial Estate, MIDC Cross Road - B, Street # 5, Andheri
|(East), Mumbai – 400 093, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.12.1961 |
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Com. Reg. No.: |
11-12223 |
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CIN No.: [Company
Identification No.] |
U25209MH1961PLC012223 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR14062G |
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PAN No.: [Permanent
Account No.] |
AAACRI888C |
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Legal Form : |
Public Limited liability company. Company’s shares are listed on stock
exchange |
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Line of Business : |
Manufacturer and Marketer of various types of Synthetic Resins. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 71000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as
experienced and respectable businessmen.
Trade relations are reported as fair.
Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
A-8, Marol Industrial Estate, MIDC Cross Road - B, Street # 5, Andheri
|(East), Mumbai – 400 093, Maharashtra, India |
|
Tel. No.: |
91-22-28207897 / 28321671 / 28347897 |
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Fax No.: |
91-22-28217906 / 27412380 |
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E-Mail : |
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Website : |
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Factory 1 : |
Taloja Industrial Estate of M.I.D.C., Post Box No.6, Taloje A. V.
410208, Dist. Raigad |
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Tel. No.: |
91-2646-223262 / 91-22-7412229, 7412380 |
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Factory 2 : |
Plot No. 3607, GIDC Industrial Estate,
Ankleshwar, District Bharuch – 393 002, Gujarat |
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Tel. No.: |
91-2646-223262 |
DIRECTORS
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Name : |
Mr. Ashwin S Dani |
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Designation : |
Chairman |
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Name : |
Mr. P Ananthanarayanan |
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Designation : |
Managing Director |
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Name : |
Mr. Mahendra C Choksi |
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Designation : |
Director |
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Name : |
Mr. Amar A Vakil |
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Designation : |
Director |
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Name : |
Mr. S. Sridhar |
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Designation : |
Director |
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Name : |
Shri. Bharat B Chovatia |
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Designation : |
Director |
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Name : |
Shri. Chatrabhuj D Kapadia |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. D B Godbole |
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Designation : |
General Manager |
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Name : |
Mr. S. Gangan |
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Designation : |
Marketing Manager |
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Name : |
Mr. Bhagat |
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Designation : |
Purchase General Manager |
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Name : |
Mr. Shrikant Naik |
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Designation : |
General Manager Sales |
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Name : |
Ms. Smita S. Gawde |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As On 31.03.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Directors, Relatives and Associates |
2545000 |
71.24 |
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Individuals |
1006900 |
28.09 |
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Domestic Companies |
19400 |
0.54 |
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Financial Institutions |
- |
- |
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Mutual Funds / Banks / FIIS / OCBs |
- |
- |
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Non-Resident Individuals |
1000 |
0.03 |
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Total |
3572300 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Marketer of various types of Synthetic Resins. |
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Products : |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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PRODUCTION STATUS (As On 31.03.2008)
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Synthetic Resin 100% |
M.T. |
NA |
5150 |
5159 |
GENERAL
INFORMATION
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No. of Employees : |
107 |
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Bankers : |
State Bank of India, Backbay Reclamation Branch, Nariman Point, Mumbai |
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Facilities: |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s Shah and Company Chartered Accountants |
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Address : |
Mumbai |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3661100 |
Equity Shares |
Rs.10/- each |
Rs.36.611
millions |
Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3572300 |
Equity Shares |
Rs.10/- each |
Rs.35.723
millions |
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Add-Bonus Shares by Capitalization of
reserves |
|
Rs.0.456
Million |
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Total |
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Rs.36.179 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
36.179 |
36.179 |
36.179 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
106.061 |
89.997 |
79.094 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
142.240 |
126.176 |
115.273 |
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LOAN FUNDS |
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1] Secured Loans |
22.316 |
25.983 |
29.313 |
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2] Unsecured Loans |
2.086 |
2.516 |
2.270 |
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TOTAL BORROWING |
24.402 |
28.499 |
31.583 |
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DEFERRED TAX LIABILITIES |
10.809 |
11.211 |
11.397 |
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TOTAL |
177.451 |
165.886 |
158.253 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
48.215 |
51.620 |
55.378 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.002 |
0.002 |
2.502 |
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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 |
56.853 |
46.203 |
45.212 |
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Sundry Debtors |
117.365 |
103.685 |
87.423 |
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Cash & Bank Balances |
11.936 |
10.678 |
6.542 |
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Other Current Assets |
0.249 |
0.000 |
0.000 |
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Loans & Advances |
5.702 |
4.364 |
3.546 |
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Total
Current Assets |
192.105
|
164.930 |
142.723
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
62.871 |
50.666 |
42.350 |
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Provisions |
0.000 |
0.000 |
0.000 |
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Total
Current Liabilities |
62.871 |
50.666 |
42.350 |
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Net Current Assets |
129.234 |
114.264 |
100.373 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
177.451 |
165.886 |
158.253 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
530.077 |
484.192 |
377.153 |
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Other Income |
1.543 |
1.414 |
8.919 |
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Total Income |
531.620 |
485.606 |
386.072 |
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Profit/(Loss) Before Tax |
37.554 |
26.871 |
20.999 |
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Provision for Taxation |
13.399 |
9.913 |
6.970 |
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Profit/(Loss) After Tax |
24.155 |
16.958 |
14.029 |
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Earnings in Foreign Currency : |
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Export Earnings |
1.210 |
0.000 |
0.000 |
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Imports : |
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Raw Materials |
91.791 |
76.669 |
60.487 |
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Stores & Spares |
0.290 |
0.000 |
0.000 |
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Others |
0.000 |
0.000 |
0.134 |
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Total Imports |
92.081 |
76.669 |
60.621 |
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Expenditures : |
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Manufacturing Expenses |
3.691 |
3.838 |
39.849 |
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Raw Material Consumed |
412.778 |
370.516 |
297.572 |
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Salaries, Wages, Bonus, etc. |
27.278 |
27.205 |
23.778 |
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Other Expenditure |
50.319 |
57.176 |
3.874 |
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Total Expenditure |
494.066 |
458.735 |
365.073 |
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QUARTERLY
|
PARTICULARS |
|
|
30.06.2008 |
|
Sales Turnover |
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|
148.200 |
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Other Income |
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|
0.200 |
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Total Income |
|
|
148.400 |
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Total Expenditure |
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|
135.100 |
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Operating Profit |
|
|
13.300 |
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Interest |
|
|
0.300 |
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Gross Profit |
|
|
13.000 |
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Depreciation |
|
|
0.900 |
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Tax |
|
|
4.400 |
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Reported PAT |
|
|
7.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
4.54
|
3.49 |
3.63 |
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Net Profit Margin (PBT/Sales) |
(%) |
7.08
|
5.54 |
5.56 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
15.62
|
12.40 |
14.17 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.21 |
0.18 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.61
|
0.62 |
0.64 |
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Current Ratio (Current Asset/Current Liability) |
|
3.05
|
3.25 |
3.37 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS:
The total income for the year has grown from Rs.472.761 Millions in the previous
year to Rs.531.620 Millions
MANAGEMENT
DISCUSSION AND ANALYSIS:
The Company caters various kinds of synthetic resins manufactured by it mainly
to the industrial segment and hence the growth for the Company depends entirely
on the growth of the industrial segment as also its ability to be competitive
in the environment.
The higher price of the crude oil in the global market during the year
2007-08 compared to the prices prevailing in the earlier years has led to
higher input costs and has impacted the margins. The Company, has therefore,
initiated steps to overcome higher input cost by focusing on controlling other
operating cost and improving the existing products. Projects have also been
undertaken to launch new and value added products.
The introduction of VAT has affected to some extent the ability to
compete in other states. The delay in the phasing out of the central sales tax
by the Central Government is also having its impact on the growth.
The Board considers the performance of the Company as reasonable in view of the
difficult market conditions and is optimistic about its prospects in the coming
years.
Contingent
Liabilities
Counter Guarantees given by the Company to Banks against guarantees
given by them to third parties on letter of credit and bank guarantee accounts
Rs.3.355 Millions (P.Y.Rs.5.756 Millions)
Future Plan of
Action
Focus on research and innovation projects will continue and this will
enable launch of improved as well as new products of superior quality in the
market to meet clients expectations/ demands.
Fixed Assets
- Leasehold
Land
- Buildings
- Plant and
Machinery
- Efflument
Treatment Plant
- Electric and
Pipe Fitting
- Other
Equipment and Accessories
- Furniture and
Office Equipments
- Vehicles
- Research and
Dev Building
- Research and
Dev Equipment
- Intangible
Assets
As Per Websites
Management
Over the years, Subject is lead by a strong professional team consisting of MBA’s, Chemical Engineers and Doctorates with a wide variety of experience. Today, they bet on intellectual capital and hire some of the best talent within different departments.
The promoters of the Company, Choksi’s, Dani’s and Vakil’s
are the same as those of India’s leading paint manufacturer, Asian Paints,
which have embedded strong commitment levels and transparency across the
organization. The management strongly believes in fostering a long lasting
relationship and trust with its customers
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.48.68 |
|
UK Pound |
1 |
Rs.84.37 |
|
Euro |
1 |
Rs.65.70 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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|
|
--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
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|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
|