MIRA
INFORM REPORT
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Report Date : |
30.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
MARVEL VINYLS LIMITED |
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Registered Office : |
G – 73, Connaught Circus, New Delhi – 110001 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
30.05.1985 |
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Com. Reg. No.: |
21085 |
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CIN No.: [Company
Identification No.] |
L74899DL1985PLC021085 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELM08654C |
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PAN No.: [Permanent
Account No.] |
AAACM1917B |
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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 Calendered Flexible Vinyls. |
RATING &
COMMENTS
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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 710000 |
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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 meeting its normal commitments
timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
G – 73, Connaught Circus, New Delhi – 110001, India |
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Tel. No.: |
91-11-23326888 / 23325777 / 23327888 / 3355097 / 23354566 |
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E-Mail : |
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Website : |
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Factory 1 : |
64/3, Link Road, Industrial Area, Site IV, Sahibabad, Ghaziabad, Uttar
Pradesh |
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Factory 2 : |
83-84, Malanpur Industrial Area, District Bhind [M.P.] |
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Branches : |
Located at :
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Regional Office : |
A 40 – Rajouri Garden, New Delhi – 110027 |
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Tel. No.: |
91-11-25171666 |
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Fax No.: |
91-11-25172444 |
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E-Mail : |
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Regional Office : |
210, Omrigar Building, Lt. Marg, Mumbai – 400003, Maharashtra, India |
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Tel. No.: |
91-22-23441311 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Pavan Chawla |
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Designation : |
Managing Director |
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Name : |
Mr. Pankaj Chawla |
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Designation : |
Wholetime Director |
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Name : |
Mr. Pradeep Singh |
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Designation : |
Director – Technical |
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Name : |
Dr. P. K. Bhardwaj |
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Designation : |
Director |
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Name : |
Mrs. Kirti Bhardwaj |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
of Calendered Flexible Vinyls. |
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Products : |
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PRODUCTION STATUS
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Particulars |
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Installed
Capacity |
Actual
Production |
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PVC Film, Sheeting, Flooring Tiles and PVC Coated Fabrics |
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17600 |
9853 |
GENERAL
INFORMATION
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Bankers : |
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Facilities : |
AS ON 31.03.2007
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Shanti Prasad and Company Chartered Accountants |
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Address : |
M-96, Connaught Circus, New Delhi – 110001 |
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Collaborators : |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5500000 |
Equity Shares |
Rs. 10/- each |
Rs. 55.000 Millions |
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200000 |
Redeemable Preference Shares |
Rs. 100/- each |
Rs.20.000
Millions |
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Total |
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Rs. 75.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5382583 |
Equity Shares |
Rs. 10/- each |
Rs. 53.826
Millions |
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Less : Amount in arrears |
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Rs. 4.110
Millions |
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Sub Total |
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Rs. 49.716 Millions |
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200000 |
18 % Redeemable Preference Shares |
Rs. 100/- each |
Rs.20.000
Millions |
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Grand Total |
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Rs. 69.716 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 |
69.716 |
69.716 |
69.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
71.695 |
73.942 |
75.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
141.411 |
143.658 |
145.400 |
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LOAN FUNDS |
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1] Secured Loans |
89.278 |
64.509 |
57.000 |
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2] Unsecured Loans |
19.861 |
17.111 |
17.100 |
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TOTAL BORROWING |
109.139 |
81.620 |
74.100 |
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DEFERRED TAX LIABILITIES |
15.644 |
16.638 |
0.000 |
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TOTAL |
266.194 |
241.916 |
219.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
125.402 |
120.672 |
125.400 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.002 |
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 |
112.788
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120.462 |
84.800 |
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Sundry Debtors |
124.785
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72.746 |
55.700 |
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Cash & Bank Balances |
10.209
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2.787 |
3.600 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
13.738
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13.207 |
15.400 |
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Total
Current Assets |
261.520
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209.202 |
159.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
116.178
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80.671 |
62.800 |
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Provisions |
4.552
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7.421 |
2.800 |
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Total
Current Liabilities |
120.730
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88.092 |
65.600 |
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Net Current Assets |
140.790
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121.110 |
93.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.134 |
0.200 |
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TOTAL |
266.194 |
241.916 |
219.500 |
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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 |
682.506 |
499.079 |
705.200 |
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Other Income |
10.627 |
8.227 |
6.100 |
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Total Income |
693.133 |
507.306 |
711.300 |
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Profit/(Loss) Before Tax |
[2.107] |
6.241 |
1.300 |
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Provision for Taxation |
[0.344] |
1.563 |
0.900 |
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Profit/(Loss) After Tax |
[1.763] |
4.678 |
0.400 |
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Earnings in Foreign Currency : |
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Export Earnings |
43.641 |
22.415 |
NA |
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Other Earnings |
0.237 |
0.000 |
NA |
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Total Earnings |
43.878 |
22.415 |
NA |
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Imports : |
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Raw Materials |
147.948 |
101.425 |
NA |
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Capital Goods |
8.889 |
0.119 |
NA |
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Total Imports |
156.837 |
101.544 |
NA |
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Expenditures : |
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Cost of Material |
516.415 |
341.206 |
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Excise Duty |
56.903 |
54.853 |
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Education Cess |
1.138 |
1.097 |
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Higher Secondary Edu. Cess |
0.098 |
0.000 |
710.000 |
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Interest |
8.209 |
5.570 |
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Depreciation & Amortization |
12.019 |
11.552 |
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Other Expenditure |
100.459 |
86.787 |
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Total Expenditure |
695.241 |
501.065 |
710.000 |
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SUMMARISED RESULTS
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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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628.600 |
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Other Income |
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|
7.800 |
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Total Income |
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636.400 |
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Total Expenditure |
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610.900 |
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Operating Profit |
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25.500 |
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Interest |
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10.800 |
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Gross Profit |
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14.700 |
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Depreciation |
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|
1.3.500 |
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Tax |
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|
2.000 |
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Reported PAT |
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|
1.500 |
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Dividend (%) |
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|
0.000 |
QUARTERLY RESULTS
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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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|
147.900 |
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Other Income |
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|
0.300 |
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Total Income |
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148.200 |
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Total Expenditure |
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142.000 |
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Operating Profit |
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|
6.200 |
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Interest |
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|
2.900 |
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Gross Profit |
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3.300 |
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Depreciation |
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|
3.000 |
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Tax |
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|
0.000 |
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Reported PAT |
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|
0.300 |
KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.80 |
0.65 |
0.58 |
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Long Term Debt-Equity Ratio |
0.20 |
0.15 |
0.15 |
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Current Ratio |
1.23 |
1.27 |
1.32 |
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TURNOVER RATIOS |
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Fixed Assets |
2.80 |
2.18 |
3.23 |
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Inventory |
5.85 |
4.86 |
9.55 |
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Debtors |
6.91 |
7.77 |
12.74 |
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Interest Cover Ratio |
0.78 |
2.00 |
1.25 |
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Operating Profit Margin(%) |
2.81 |
4.79 |
2.47 |
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Profit Before Interest And Tax
Margin(%) |
1.05 |
2.48 |
0.91 |
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Cash Profit Margin(%) |
1.51 |
3.25 |
1.62 |
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Adjusted Net Profit Margin(%) |
-0.25 |
0.94 |
0.06 |
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Return On Capital Employed(%) |
3.37 |
6.30 |
3.42 |
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Return On Net Worth(%) |
-1.73 |
1.11 |
0.41 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS:
During the year production was 9853 MT as compared to 9127 MT in previous year.
The Cross turnover of the Company during the year was Rs.682.508 Millions as
compared to Rs.499.078 Millions during the previous year representing a growth
of 36.75%. The Sales figures shown in this Balance Sheet are net of inter
divisional transfer.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY OUTLOOK:
The company manufactures PVC Film & sheeting by calendaring process. The
PVC Film industry is growing at a rapid pace as a result of fast growth in the
Automobile industry which is one of the biggest consumer of PVC products. This
trend of growth in the Automobile industry is likely to further speed up in the
coming years.
PVC film industry consists of various segments. Rigid PVC Film used for
packaging in the Pharmaceuticals, Food and FMCG industry. Flexible PVC flooring
is used as a surface decorating and furnishing material in the Automobile
industry and the Railways.
COMPANY'S OUTLOOK:
The growth in automotive industry was quite robust. considering continued
economic growth, good monsoon and continued need for transport. The entry of
global OEMs, making India as their manufacturing base, has given a big boost to
the industry that is a good omen for the PVC industry as the Automobile
industry is its major consumer. The company has installed new coating line to
meet the gap between the demand & supply and to mitigate the low price
branded competition.
Foreseeing good growth in the Automobile industry, the Company has shifted its
focus towards it as the major thrust area for the company. Also, the company
after obtaining R.D.S.O, approval has focused on railways as the thrust area
for the company along with the Automobile industry and Exports.
RISKS AND CONCERNS:
Risk Management is an integral part of the business process. The process for
formulating a defined risk management framework encompassing, inter alia,
methodology for assessing lying risks on an ongoing basis, risk prioritization,
risk mitigation and comprehensive reporting system is formulation. The Board
has authorized the audit committee to review the risk management Process from
time to time.
The Company is exposed to a variety of risks caused by steep rise in interest
rate, price increase in input materials, currency fluctuations, change in
models and design, low volumes, pricing pressure, stiff competition etc.
In order to reduce the risk, the Company has decided to diversify into
manufacture of new products and improvement in the current design to cover to
the entire spectrum of the export market.
The company's main raw material viz. PVC Resin is subject high fluctuations in
the price. The company's ability to pass on the cost increase to the customers
by corresponding increase m the selling price of its products is constrained by
the competition in the market. However, the company will not face any major
problems due to the above factors owing to the reputation it has built up in
the market, continued research & development support, use of the
state-of-the art technology, trial of new preparations, addition of latest
equipment, increasing the product range.
QUALIFY
POLICY:
The Company being an ISO 9001:2000 and R.D.S.O. approved company, the Company's
Quality Policy is.
While being `Quality Conscious' the Company is equally `price Conscious' to
ensure maximum satisfaction to the customers. Productive efforts are directed
towards determining customers requirements and to offer increased value through
continuous improvement in technology, formulation and processing with the
support of talented, dedicated and forward looking team."
The company has consistently shown quality improvement with regard to various
processes, keeping strict control on deviations. Customer, complaints are
resolved using lard down systems of quality assurance. Several initiatives are
being taken to further improve customer satisfaction in consonance with the
company's quality policy.
FIXED
ASSETS
- Land
- Building
- Plant and machinery
- Computers
- Air conditioners and Coolers
- Water Cooler
- Electrical Installation
- Vehicles
- Office Equipments
- Furniture and Fixture
- Photocopier Machine
- Laboratory Equipment
AS PER
WEBSITE
Subject is the largest
manufacturer of Calendered Flexible Vinyl in India. It is operating five
Calendering lines, a composite Tile Plant, foaming line and other related
machineries. Manufacturing facilities are based at three locations in
India. Offices and Dealers network is spread over the country. The
company is having Financial & Technical Collaboration with M/s Canadian
General Towers Limited, Canada and Technical collaboration with M/s Korea
General Plastic Ind. Limited and another floor covering giant of Korea.
Subject manufactures variety of calendered
products like PVC films & Sheetings for – decorative applications, Table
Covers, shower Curtains, books stock, rain wears and other applications.
Subject also manufactures artificial Leather
Cloth for Upholstery, garments, luggage and other applications using
Calendering, expanding / foaming methods.
In July 1999, subject commissioned a complete Floor
Coverings and Tile Plants imported from Korea, which is being operated by the
Korean Technicians in India. The product range includes Printed Floor
coverings, Printed Press Tiles, Flex Tiles (Marbling type), Flex Flooring, Stud
Flooring for industrial Uses, Automobile Matting, Antistat Flooring and other
specialized Floor Coverings.
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.43.79 |
|
UK Pound |
1 |
Rs.80.05 |
|
Euro |
1 |
Rs.64.56 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
|
51 |
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 |
|