MIRA
INFORM REPORT
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Report Date : |
25.10.2008 |
IDENTIFICATION DETAILS
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Name : |
PCI PAPERS LIMITED |
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Registered Office : |
Plot D/1, MIDC Industrial Area, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
19.01.2001 |
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Com. Reg. No.: |
11-130521 |
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CIN No.: [Company
Identification No.] |
U99999MH2001PTC130521 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKP00897B |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Polycoated paper, Silicon release paper and Glassine poly paper products. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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Maximum Credit Limit : |
USD 200000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by average 30 days |
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Litigation : |
Clear |
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Comments : |
Subject is a listed company having moderate track. Profit margin is under severe pressure. General financial position is moderate. Payments are reported as slow by average 30 days. The company can be considered for small to mediocre business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot D/1, MIDC Industrial Area, |
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Tel. No.: |
91-2551-230382/ 230359 |
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Fax No.: |
91-2551-230411 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Prashant K. Bhattacharya |
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Designation : |
Director |
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Name : |
Mr. Narendra K. Hirawat |
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Designation : |
Director |
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Name : |
Mr. B. D. Save |
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Designation : |
Nominee (IDBI) Director |
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Name : |
Mr. Milind G. Gujarathi |
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Designation : |
Director |
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Name : |
Dr. Smarajit Sen |
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Designation : |
Additional Director |
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Name : |
Ms. Kanak Devi Bagrecha |
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Designation : |
Whole Time Director |
KEY EXECUTIVES
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Name : |
Mr. B. L. Sharma |
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Designation : |
Company Secretary |
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Name : |
Mr. R. Bakthavatsalam |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of other primary paper materials |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
200 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
C S Sarda and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6,000,000 |
Equity Shares |
Rs.10/- each |
Rs.60.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4,344,175 |
Equity Shares |
Rs.10/- each |
Rs.43.442
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
43.400 |
43.400 |
43.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
(2.700) |
[7.800] |
[8.800] |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
40.700 |
35.600 |
34.600 |
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LOAN FUNDS |
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1] Secured Loans |
57.600 |
72.600 |
75.600 |
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2] Unsecured Loans |
4.700 |
2.500 |
2.500 |
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TOTAL BORROWING |
62.300 |
75.100 |
78.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
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TOTAL |
103.000 |
110.700 |
112.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
32.700 |
33.800 |
38.200 |
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Capital work-in-progress |
0.900 |
0.900 |
0.700 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
52.400
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42.200
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38.400 |
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Sundry Debtors |
74.000
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58.400
|
62.600 |
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Cash & Bank Balances |
3.700
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1.800
|
2.700 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
20.500
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19.700
|
19.000 |
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Total
Current Assets |
150.600
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122.100
|
122.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
80.500
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45.800
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49.000 |
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Provisions |
0.700
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0.300
|
0.100 |
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Total
Current Liabilities |
81.200
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46.100
|
49.100 |
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Net Current Assets |
69.400
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76.000
|
736.00 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.200 |
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TOTAL |
103.00 |
110.700 |
112.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
207.000 |
187.000
|
204.100
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Other Income |
3.300 |
4.800
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4.000
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Total Income |
210.300 |
191.800 |
208.100 |
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Profit/(Loss) Before Tax |
5.900 |
1.600
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1.400
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Provision for Taxation |
0.700 |
0.300
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0.100
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Profit/(Loss) After Tax |
5.200 |
1.300
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1.300
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FOB |
12.380 |
NA |
NA |
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Expenditures : |
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Raw Materials |
127.200 |
110.400
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125.800
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Excise Duty |
24.100 |
23.700
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21.700
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Power & Fuel Cost |
8.600 |
6.900
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7.000
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Increase/(Decrease) in Finished Goods |
(4.500) |
(3.400
) |
(2.900
) |
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Other Manufacturing Expenses |
12.300 |
11.400
|
13.200
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Employee Cost |
10.100 |
10.900
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10.100
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Selling and Administration
Expenses |
10.800 |
13.200
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13.800
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Miscellaneous Expenses |
0.100 |
0.200
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0.500
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Interest & Financial Charges
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10.000 |
10.000
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10.700
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Depreciation |
5.700 |
6.900
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6.800
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Total Expenditure |
204.400 |
190.200 |
206.700 |
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SUMMERISED
RESULT
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PARTICULARS |
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31.03.2008 |
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Type |
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Full Year |
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Sales Turnover |
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220.50 |
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Other Income |
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1.60 |
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Total Income |
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222.10 |
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Total Expenditure |
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199.50 |
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Operating Profit |
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22.60 |
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Interest |
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14.10 |
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Gross Profit |
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8.50 |
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Depreciation |
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3.50 |
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Tax |
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0.60 |
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Reported PAT |
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4.40 |
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Divident (%) |
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0.00 |
QUARTERLY RESULT
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PARTICULARS |
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30.06.2008 |
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Type |
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1st
Quarter |
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Sales Turnover |
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53.50 |
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Other Income |
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0.20 |
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Total Income |
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53.70 |
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Total Expenditure |
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49.60 |
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Operating Profit |
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4.10 |
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Interest |
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3.00 |
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Gross Profit |
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1.10 |
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Depreciation |
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0.90 |
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Tax |
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0.00 |
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Reported PAT |
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0.20 |
KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt Equity Ratio |
1.80 |
2.18 |
2.49 |
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Long Term Debt Equity Ratio |
076 |
1.04 |
1.49 |
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Current Ratio |
1.32 |
1.40 |
1.52 |
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TURNOVER RATIOS |
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Fixed Assets |
2.14 |
2.00 |
2.25 |
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Inventory |
4.38 |
4.64 |
5.42 |
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Debtors |
3.12 |
3.09 |
3.33 |
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Interest Cover Ratio |
1.59 |
1.16 |
1.15 |
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Operating Profit Margin (%) |
10.43 |
9.89 |
9.36 |
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Profit Before Interest and Tax Margin (%) |
7.68 |
6.20 |
6.03 |
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Cash Profit Margin (%) |
5.27 |
4.39 |
4.07 |
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Adjusted Net Profit Margin (%) |
2.51 |
0.70 |
0.73 |
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Return on Capital Employed (%) |
12.55 |
8.62 |
8.81 |
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Return on Net Worth (%) |
8.97 |
2.24 |
2.59 |
LOCAL AGENCY FURTHER INFORMATION
YEAR IN
RETROSPECT
The performance of the Company during the year was satisfactory. It has posted
an excellent result for the year .
The total revenue at Rs.210.342 Millions registered a 9% increase over the corresponding year. Net profits after tax jumped by 290 per cent at Rs.5.159 Millions This high growth was attributed to good performance of Nashik Division, despite, massive price hike of basic raw materials and stiff competition from local and dumping of off cuts imports. The management has been focusing on better quality and ensures customer satisfaction to encounter these obstacles.
The bottom line of the company has been improved. Though the sales and
profitability of the company has shown a positive note to the over all growth
and development of the company, still the directors feel that the company's
sales and revenues were, not commensurate with the projections due to massive
increase in the price of the Petroleum Products in the International as well as
in domestic markets, which has directly affected the price of the basic inputs
(e.g. L.D.P.E, Adhesive, other Chemicals) used by the company.
However, the company increased the selling price of its' products but due to
local market competition, it could not transferred the entire burden of such
increase of price on the customers.
PAPER DIVISION - I (BIRATI -
KOLKATA)
Activity of Birati Division has been continuously follow-up and after taking
various corrective measures and after discontinuing the non-remunerative items
the management could able to make it viable. The management has been constantly
reviewing the activities of this unit.
PAPER DIVISION - II (NASHIK)
The performance of the Paper Division-II at Nashik continued to be satisfactory. It has recorded turnover of Rs.194.099 Millions as against Rs.174.262 Millions in the previous year, represented a growth of 11.38% over the previous year. The company has been consistently following the policies to consolidate its position in respect of sales, profitability, production and marketing by optimum utilization of available resources.
FINANCE
The entire banking operations since been shifted to Nashik as measures of cost cutting and better coordination of finance activities. The company has made an application to the State Bank of India Nashik Road Branch for sanction of working capital facilities aggregating to Rs.23.200 Millions and the same is lying pending for their kind consideration.
MANAGEMENTS'
DISCUSSION AND ANALYSIS
In terms of clause 49(V) of the Listing Agreement with Stock Exchange, a Report
on the Management Discussion and Analysis is attached to this Annual
Report
Overall Review
The Company's operations are broadly classified in two business segments i.e.
Paper and Chemicals. During the year it has recorded a turnover of Rs.207.024
Millions; despite of intense competition with unorganized sector, dumping of
stock lot and off-cuts from oversees manufactures. Lack of growth in demand and
increase in prices of raw material and consumables, the company has posted a
net profit after tax of Rs.5.0159 Millions which has improved its' bottom
lines. The sales were remained below the projections because of shortage of
funds as the revenues could not generated sufficient surplus to match with cash
flows. The company has not defaulted the payments of any dues to financial
institution/Bank.
Finance
During the year the entire banking and finance control function has been
shifted to Nashik as a measure of cost cutting and better control. The company
has been facing the burden of high interest cost since last couple of years and
to overcome this problem, the directors has consolidated the position by shifting
its banking operation to Nashik it will minimize the administrative cost and
also helpful in taking timely decisions as regards the utilization of
funds.
The Company is regular on making payments to IDBI as per the restructuring
package. The Company's banker in turn too, has sanctioned higher working
capital with reduced rate of interest, keeping in view the benefits given by
the financial institution. However, the management will continue to follow up
with term lending institution and bank to review the lending rates and consider
reduction of the interest rate keeping in view the current trend that of
failing interest rate in banking sector. The management is hopeful of favorable
response from F1, since the company's track record is satisfactory.
The Company's Nashik Plant showed continuous improvement towards productivity and profitability.
Internal Control Systems and their adequacy
The company has established an internal control system, which provides reasonable
assurance with regards to maintaining proper financial and cost accounting
record, economy in operation and efficiency, safeguarding the assets and
facilitating reliability of financial and operational information. An audit
Committee of Board of Directors with a majority of independent regularly
reviewing the audit plans, significant audit findings, adequacy of internal
Control as well as compliance with accounting standards.
Profile
Subject is a well known group set up in joint venture with the
Industrial Development Bank of
Self Adhesive Label Stock
in Reel & Sheet form in wide range for Example.
• Chromo Art Label Stock.
• Mirror Coat Label Stock.
• Map litho Label Stock.
• Fluorescent & Coloured paper
Labelstock.
• Foil Labelstock.
• Fabric (Velvet).
• Films (PVC).
Adhesive used for various
applications.
• Water Based Acrylic Adhesive.
• Hot Melt Adhesive.
• Removable Adhesive.
• Solvent based Adhesive.
• Rubber Based Adhesive.
MOTTO
• Maximised range of
product.
• Consistent Quality by our Quality Control Department.
• Continuous Development from R & D.
• Application Product to the Customer with their entire satisfaction.
• Very competitive price to the Customer.
• Devotion towards prompt service & fulfilling the commitment.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.49.95 |
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|
1 |
Rs.79.56 |
|
Euro |
1 |
Rs.63.65 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
3 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
4 |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
35 |
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 |
|