MIRA
INFORM REPORT
|
Report Date : |
15.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
UFLEX LIMITED |
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Formerly Known as : |
FLEX INDUSTRIES
LIMITED |
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Registered Office : |
305, 3rd
Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash – I, New Delhi -
110048 |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
21.06.1988 |
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Com. Reg. No.: |
55-32166 |
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CIN No.: [Company
Identification No.] |
L74899DL1988PLC032166 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELF00184C /
MRTF00050B |
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PAN No.: [Permanent
Account No.] |
AAACF0109J |
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Legal Form : |
Subject is a public
limited liability company. The
company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of
flexible packing materials of printed laminated of plastics and paper based
materials. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 32000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject has
turned the corner. Performance and financial status has shown
improvement. Payments are reported as
slow but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
305, 3rd
Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash – I, New Delhi –
110048, India |
|
Tel. No.: |
91-11-26440917 / 26440925 |
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Fax No.: |
91-11-26216922 |
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Email : |
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Website : |
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Corporate Office 1 : |
110, 1ST
Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash – I, New Delhi -
110048 |
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|
Corporate Office 2 : |
A-107, Sector-IV,
Noida – 201 301, Uttar Pradesh, India |
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Film Division : |
A-1, Sector 60, District
Gautam Budh Nagar, Noida - 201 301, Uttar Pradesh |
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Tel. No.: |
91 120-3982121 / 4002121 |
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Fax No.: |
91 120 2580511 / 2580003 /
2580152 |
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Email : |
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Plants : |
·
D-1-2, 15-16, Sector 59,
Noida, Uttar Pradesh ·
29-B, Malanpur Industrial Area,
Distt. Bhind, Gwalior, Madhya Pradesh ·
A-2A, Sector – 60, Noida,
Uttar Pradesh ·
A-2, Sector – 60 Noida, Uttar
Pradesh ·
C-3, Sector – 57, Phase –
III, Noida, Uttar Pradesh ·
C-5-8, Sector – 57, Phase
III, Noida, Uttar Pradesh ·
L-1, Industrial Area,
Ghirongi (Malanpur), Dist-Bhind, Madhya Pradesh |
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|
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Branches : |
·
118-119, Damji Shamji Udyog Bhawan, 25-A, Veera Desai Road, Andheri
(West), Mumbai - 400 053, Maharashtra ·
A-16, FMC
Fortuna, 234/3A (2nd Floor), Acharya Jagdish Chandra Bose Road,
Kolkata - 700 020, West Bengal ·
443, 2nd Floor, 7th Block, Koramangala,
Bangalore - 560 095, Karnataka |
DIRECTORS
|
Name |
Mr. Ashok
Chaturvedi |
|
Designation |
Chairman and Managing
Director |
|
Qualification |
B.Sc. |
|
Experience
|
27 years |
|
Date of
Appointment |
01.08.1988 |
|
Last
Employment |
Flex Laminaters
Limited (Chairman and Managing Director) |
|
|
|
|
Name |
Mr. Ravi
Kathpalia |
|
Designation |
Director |
|
Date of Birth |
18.08.1937 |
|
Qualification |
M.A., M. Phill,
I.A.A.S |
|
Experience |
A Retd.
Government Officer with expertise in the fields of audit and accounts. |
|
Date of
Appointment |
22.03.2002 |
|
Directorship
in other public limited companies |
|
|
Member /
Chairman of committee of the board of the public limited companies on which
he is director |
|
|
|
|
|
Name |
Mr. R. P. Agrawal |
|
Designation |
Director |
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|
Name |
Mr. M.G. Gupta |
|
Designation |
Director |
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|
Name |
Mr. A. Karati |
|
Designation |
Nominee – ICICI
Bank |
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|
Name |
Mr. Javed Yunus |
|
Designation |
Nominee |
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|
Name |
Mr. P. Abraham |
|
Designation |
Nominee – UTI |
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|
|
Name |
Mr. Paresh Nath
Sharma |
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Designation |
Whole Time
Director |
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|
|
|
Name |
Mr. S. K. Kaushik
|
|
Designation |
Whole Time
Director |
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|
|
|
Name : |
Mr. Paresh Nath
Sharma |
|
Designation : |
Director |
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|
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|
Name : |
Mr. R. K. Sharma |
|
Designation : |
Director |
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|
Name : |
Mr. R.P. Agrawal |
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Designation : |
Director |
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Date of
Birth/Age : |
12.07.1932. |
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Qualification
: |
FCA, LL.B. |
|
Date of
Appointment : |
19.08.1997 |
|
Directorship in
other Public Limited Companies : |
- Flex Engineering Limited |
|
Member/Chairman
of Committee of the Board of the Public Limited Companies on which he is Director : |
Audit Committee - Flex Industries Limited - Flex Engineering Limited Shareholders'/Investors' Grievance Committee - Flex Industries Limited (Chairman) - Flex Engineering Limited (Chairman) |
|
|
|
|
Name : |
Mr.
M.G. Gupta |
|
Designation : |
Director |
|
Date of
Birth/Age : |
02.03.1934 |
|
Qualification
: |
I.A.A.S |
|
Date of
Appointment : |
31.01.2002 |
|
Directorship in
other Public Limited Companies : |
- FCL Technologies and Products Limited - B.T.W. Industries Limited - Flex Foods Limited - Credit Capital Assets Management
Company Limited |
|
Member/Chairman
of Committee of the Board of the Public Limited Companies on which he is Director : |
Audit Committee - Flex Industries Limited - FCL Technologies and Products Limited - Flex Foods Limited - Credit Capital Assets Management
Company Limited (Chairman) Shareholders'/Investors' Grievance Committee - Flex Industries Limited - FCL Technologies & Products
Limited (Chairman) |
|
|
|
|
Name |
Shri P.N. Sharma |
|
Designation |
Director |
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Date of Birth |
15.08.1949 |
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Qualification |
Chartered Accountant |
|
Experience |
A Chartered Accountant having wide and
varied experience in the field of finance and other related arease. |
|
Date of Appointment
|
11.08.2003 |
|
Directorship
in other public limited companies |
|
|
Member /
Chairman of committee of the board of the public limited companies on which
he is director |
|
KEY EXECUTIVE
|
Name |
Mr. Ajay Krishna |
|
Designation |
Company Secretary |
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|
Name |
Mr. Ashok Virmani |
|
Designation |
Company Secretary |
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|
Name |
Mr. Ajay Krishna |
|
Designation |
Vice President
(Legal) and Company Secretary |
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|
|
Name |
Mr. Pradeep Tyle |
|
Designation |
CEO - Films |
|
Mobile No.: |
91 9810357061 |
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|
Name |
Mr. P.L. Sirsamkar |
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Designation |
President - Films |
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Mobile No.: |
91 9810357059 |
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INTERNATIONAL
MARKETING
|
|
|
Name |
Mr. Piyush Gupta |
|
Designation |
(AVP. International Sales & Mktg. - Films) |
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|
91 9810357108 |
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DOMESTIC MARKETING
|
|
|
Name |
Mr. Jagmohan Mongia |
|
Designation |
(EVP. Marketing - Films) |
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|
91 9810357046 |
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POLYESTER
FILM MARKETING : |
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|
Name |
Mr. Rakesh Mishra |
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Designation |
(GM -Marketing & Sales) |
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Mobile No.: |
91 9810357072 |
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|
Name |
Mr. Ajay Shukla |
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Designation |
Key Executive |
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Mobile No.: |
91 9871130002 |
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|
Name |
Mr. Pankaj Tiwari |
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Designation |
Key Executive |
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Mobile No.: |
91 9313819673 |
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|
Name |
Mr. Sameer Sinha |
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Designation |
Key Executive |
|
Mobile No.: |
91 9873964148 |
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|
|
|
Name |
Mr. Vivek Shukla |
|
Designation |
Key Executive |
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Mobile No.: |
91 9899489397 |
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|
BOPP Film Marketing : |
|
|
Name |
Mr. Indrajit Ghosh |
|
Designation |
Metallized - All India |
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Mobile No.: |
91 9810899024 |
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|
|
|
Name |
Mr. Amit Sharma |
|
Designation |
Conversion grade - All India |
|
Mobile No.: |
91 9811103533 |
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|
|
|
Name |
Mr. Vinesh Verma |
|
Designation |
Print Lam - All India |
|
Mobile No.: |
91 9818009584 |
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|
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|
CPP Film Marketing : |
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|
Name |
Mr. Vibhu Ranjan |
|
Designation |
Key Executive |
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Mobile No.: |
91 9899291414 |
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|
|
Name |
Mr. Aditya Verma |
|
Designation |
Key Executive |
|
Mobile No.: |
91 9891514364 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 31.03.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters and Associates |
25055176 |
48.53 |
|
Financial Institutions, Mutual Funds &
Banks |
1642041 |
3.18 |
|
Foreign Institutional Investors |
1557319 |
3.02 |
|
NRIs |
36782 |
0.07 |
|
GDRs |
5465840 |
10.59 |
|
Other Corporate Bodies |
11501499 |
22.28 |
|
Others (General Public) |
6266644 |
12.13 |
|
Shares in transit (Demat) |
105345 |
0.20 |
|
Total |
51630646 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
flexible packing materials of printed laminated of plastics and paper based
materials. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
|
|
|
|
|
Printed,
Laminated, Metalised, Co-Extruded, Coated, Embossed/ Hologrammed and Pain
Plastic Films |
MT |
111000 |
|
Polymer Granules
(meant for captive consumption) |
MT |
4500 |
|
Rotogravure Cylinder
and Shims |
Nos. |
27000 |
|
Hologrammed Sticker Sheets |
Sheets in Millions |
7.000 |
GENERAL
INFORMATION
|
No. of Employees : |
2960 |
|
|
|
|
Bankers : |
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|
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Banking
Relations : |
Satisfactory |
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|
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|
Auditors : |
|
|
Name : |
Statutory
auditors
·
Vijay Sehgal and Company Chartered Accountants, New Delhi, India Internal
auditors
·
Jain Singhal and Associates Chartered Accountants New Delhi, India |
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|
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|
Associates : |
|
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|
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Subsidiaries |
FLEX
MIDDLE EAST FZE, FLEX
America Inc. |
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|
|
CAPITAL STRUCTURE
AS ON 31.03.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19000000 |
Preference Shares |
Rs.100/- each |
Rs. 1900.000 millions |
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs. 1500.000 millions |
|
|
|
|
|
|
|
Total
|
|
Rs. 3400.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
51630646 |
Equity Shares |
Rs.10/- each |
Rs. 516.306 millions |
|
Less : |
Amount Unpaid |
|
Rs. 0.440 million |
|
|
|
|
|
|
|
Total |
|
Rs. 515.866 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 |
649.700 |
515.866 |
490.259 |
|
2) Share Warrants |
0.000 |
134.750 |
0.000 |
|
3] Reserves &
Surplus |
5724.700 |
4333.782 |
3472.230 |
|
4] Profit and
Loss Account |
0.000 |
0.000 |
0.000 |
NETWORTH
|
6374.400 |
4984.398 |
3962.489 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
7307.700 |
7662.336 |
6135.785 |
|
2] Unsecured
Loans |
6291.400 |
4547.161 |
192.565 |
TOTAL
BORROWING
|
13599.100 |
12209.497 |
6328.350 |
|
DEFERRED TAX
LIABILITIES |
0.000 |
1020.774 |
731.116 |
|
|
|
|
|
TOTAL
|
19973.500 |
18214.669 |
11021.955 |
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block] |
9635.700 |
8909.521 |
7751.927 |
|
Capital work-in-progress |
1014.300 |
346.122 |
113.003 |
|
|
|
|
|
|
INVESTMENTS |
5065.800 |
2057.586 |
1264.640 |
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
|
Inventories |
1003.600 |
911.792 |
414.734 |
|
Sundry Debtors |
2866.000 |
2527.666 |
1868.976 |
|
Cash & Bank
Balances |
2621.500 |
4660.911 |
158.768 |
|
Other Current
Assets |
0.000 |
10.519 |
19.590 |
|
Loans &
Advances |
2811.200 |
1316.070 |
1023.759 |
|
Total Current Assets |
9302.300 |
9426.958 |
3485.827 |
Less: CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
Current
Liabilities |
4591.400 |
2182.299 |
1545.132 |
Provisions
|
453.200 |
343.219 |
48.310 |
Total Current Liabilities
|
5044.600 |
2525.518 |
1593.442 |
|
Net
Current Assets |
4257.700 |
6901.440 |
1892.385 |
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
TOTAL
|
19973.500 |
18214.669 |
11021.955 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
|
Sales Turnover |
14161.100
|
11985.632 |
9459.638 |
|
|
Other Income |
1182.600
|
1001.868 |
681.222 |
|
|
Total Income |
15343.700 |
12987.500 |
10140.860 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
712.300
|
666.586 |
439.052 |
|
|
Provision for Taxation |
93.000
|
245.728 |
110.391 |
|
|
Profit/(Loss) After Tax |
619.300
|
420.858 |
328.661 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
F.O.B. value of export of manufactured/
Traded Goods |
|
3105.300 |
3161.493 |
|
|
Design and Art Work Recovery |
|
41.108 |
30.286 |
|
|
Technical Services |
2976.114 |
233.243 |
38.871 |
|
|
Interest |
|
5.826 |
0.000 |
|
|
Dividend |
|
43.025 |
0.000 |
|
Total Earnings |
2976.114 |
3428.502 |
3230.65 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
|
1468.513 |
583.474 |
|
|
Stores & Spares |
2310.752 |
90.472 |
862.497 |
|
|
Capital Goods |
|
81.603 |
39.124 |
|
|
Others |
|
4.707 |
11.179 |
|
Total Imports |
2310.752 |
1645.295 |
1496.274 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
7946.000 |
7900.143 |
6514.384 |
|
|
Manufacturing Expenses |
766.000 |
1473.007 |
1014.029 |
|
|
Administrative Expenses |
1102.000 |
1154.251 |
838.840 |
|
|
Increase/(Decrease) in Finished Goods |
[105.800] |
(85.581) |
0.602 |
|
|
Salaries, Wages, Bonus, etc. |
716.500 |
658.366 |
459.557 |
|
|
Interest |
775.100 |
473.116 |
281.830 |
|
|
Depreciation & Amortization |
767.700 |
760.554 |
592.566 |
|
|
|
2663.900 |
0.000 |
0.000 |
|
Total Expenditure |
14631.400 |
12459.437 |
9701.808 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 |
|
Type |
|
|
1ST
Quarter |
|
Sales Turnover |
|
|
3960.800 |
|
Other Income |
|
|
122.000 |
|
Total Income |
|
|
4082.800 |
|
Total Expenditure |
|
|
3432.200 |
|
Operating Profit |
|
|
650.600 |
|
Interest |
|
|
252.200 |
|
Gross Profit |
|
|
398.400 |
|
Depreciation |
|
|
209.800 |
|
Tax |
|
|
54.600 |
|
Reported PAT |
|
|
134.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
2.30 |
2.10 |
1.63 |
|
Long Term Debt-Equity Ratio |
1.66 |
1.68 |
0.86 |
|
Current Ratio |
1.17 |
1.28 |
0.70 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.90 |
0.98 |
0.89 |
|
Inventory |
14.79 |
20.14 |
23.66 |
|
Debtors |
5.25 |
6.07 |
6.30 |
|
Interest Cover Ratio |
1.92 |
2.00 |
2.55 |
|
Operating Profit Margin(%) |
15.92 |
12.79 |
12.58 |
|
Profit Before Interest And Tax
Margin(%) |
10.50 |
7.09 |
6.89 |
|
Cash Profit Margin(%) |
9.79 |
7.91 |
8.84 |
|
Adjusted Net Profit Margin(%) |
4.37 |
2.21 |
3.15 |
|
Return On Capital Employed(%) |
8.03 |
6.93 |
7.21 |
|
Return On Net Worth(%) |
11.04 |
6.71 |
8.66 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was
incorporated on 21st June 1988 at New Delhi having Company Registration
Number 32166.
Subject obtained
the Certification of Commencement of Business on 8th August. By a scheme of amalgamation, the assets and
liabilities of the Flex Laminates Limited and Flex Papers Limited were taken by
the company effective from 1st August.
2215640 equity
shares allotted to erstwhile Flex Laminates Limited (in proportion 82 shares
: 100 shares in Flex Laminates) and 625016 shares allotted to erstwhile Flex
Papers Limited (in proportion 56 shares : 100 shares in Flex Papers Limited)
both consequent to the scheme of amalgamation without payment in cash.
The other companies
in the group are Flex Chemicals, Flex Engineering and Flex Foods. The company manufactures flexible packaging
material at its plants in Noida, Uttar Pradesh and near Gwalior, Madhya
Pradesh. Its products are used in
packing a variety of products like processed foods, toiletries, pharmaceuticals
and automobile spare parts. The
company’s products include metalised biaxially oriented polypropylene film and
holographic flexible packaging material.
It also provides complete system packaging.
The company was
awarded The Best Paper award in the international exposition on recycling of
plastics, held in May 1995 in Davos, for its technology to process mix plastic
waste arising in the course of manufacturing packaging material. The famous
brands like Pan Parag, Baba and Prince use the company’s packaging. The company’s clients also include big
companies like Hindustan Lever, Brooke Bond, Tata Tea, Nestle, etc.
The company is ISO
9002 certified and also a recognised Trading House. In 1995-96, it completed its expansion-cum-backward integration
plan involving the setting up of PET film line, BOPP film line and laminates facilities.
In 1999-2000, the
company successfully developed 1 Kg. Spout pouch of Taj Mahal Tea and a
specially designed Gillet Gel Big Nose Pouch.
In addition to this the company has successfully developed a high
performance laminate used for packaging of highly hygroscopic products, extra-clear
film having excellent optical properties for holographic application.
The company’s film
division was awarded ISO –14001 certification.
The company’s paid up equity capital was increased by Rs. 100000000due
to Preferential issues to FI’s/MF’s and further warrants have been issued in
favour of the promoters.
It is also engaged
in the manufacture of Rotogravure Cylinders for various types of rotogravure
printing, Anilox/Coating Rollers for flexo printing and Shims for holographic
embossing.
The main products
of the company comprise of Polyester Films, BOPP Films, Poly Films and various
combinations of packaging laminates.
Line I, II &
III of Film Division are ISO 9002 and ISO 14001 certified.
Pioneering the use of :
·
BOPP in barrier metallising
·
Holograms in packaging
·
Technology Development for
chemically coated films
·
Producing various packaging
machines of renowned technical capability
The company is
exploring new technologies for the proper processing of post consumer waste.
It is in trade
terms with :
·
Aakash Plasto Pack Private
Limited
·
Anand Packaging Private Limited
·
Cosmic Aluminium Wire Private
Limited
·
Cranex Limited
·
Ess Aar Engineering Private
Limited
·
Gajanan Packers Private Limited
·
Glenview Plastics Systems
Private Limited
·
Heatex Comp. Tools Private
Limited
·
Image Coding Techn. Private
Limited
·
New Pack Plastics Private
Limited
·
Print Pack Machinery Private
Limited
YEAR IN
RETROSPECT
During the year, the Company achieved a turnover of Rs.17247.230 Millions
including other income of Rs.1179.030 Millions as against turnover of
Rs.18015.879 Millions including other income of Rs.1001.868 Millions of the
previous financial year ended March, 2007.
The profit after tax for the year ended March, 2008 at Rs.619.279 Millions was
higher than the previous financial year ended March, 2007 at Rs.420.858
Millions.
DIVIDEND
The Directors are pleased to
recommend a dividend @ Rs.4/- per share for the financial year ended March 31,
2008. The dividend, if approved at the forthcoming Annual General Meeting will
be paid to Members whose names appear in the Register of Members as on 25th
August, 2008. In respect of shares held in dematerialized form, it will be paid
to those Members whose names are furnished by National Securities Depository
Limited and Central Depository Services (India) Limited as beneficial owner as
on 25th August, 2008.
SUBSIDIARY COMPANIES
Pursuant to Section 212 of the Companies Act, 1956, the required information in
respect of Subsidiary Companies, i.e. Flex America Inc., USA, Flex Middle East
FZE, UAE, Flex Europe Private Limited, UK, U Tech Developers Limited and Uflex
Packaging Inc., America
MANAGEMENT DISCUSSION AND
ANALYSIS
FORWARD-LOOKING STATEMENTS
Forward-looking statements are based on certain assumptions and expectations of
future events. The Company cannot guarantee that these assumptions and
expectations are accurate or will be realized. The Company's actual results,
performance or achievements could thus differ materially from those projected
in any such forward-looking statements. The Company assumes no responsibility
to publicly amend, modify or revise any forward looking statements, on the
basis of any subsequent developments, information or events.
Overview - Industry Structure &
Developments
Flexible Packaging
It may be recalled that the year 2007-2008 was an eventful year both nationally
and internationally .The sub-prime crisis, rise in the prices of oil and
commodities impacted all business sectors globally. Inflation continues to be a
source of worry for Governments all over the world. As per advance estimates
released by the Central Statistical Organization (CSO), in February, 2008 the
real Gross Domestic Product (GDP) growth of the Indian Economy has moderated to
8.7% in 2007-08 from 9.6% in 2006-07. The moderation in growth occurred in all
the three sectors, viz. agriculture & allied activities, industry and
services. Despite slower growth rate during 2007-08 in comparison to the year
before, India continued to be one of the fastest growing economies of the
world.
Flexible packaging and printing are the fastest growing segment of the
packaging industry worldwide. The growth rate of flexible packaging in the
global market, more particularly in developed markets such as USA and Europe
has been around 5-6% per annum, which is expected to grow at least at the same
rate in future.
Historically, the Indian packaging market is growing year on year between 14
per cent to 20 per cent but it is predicted to grow at a higher rate of 20-25%
annually. Changing consumer tastes in every field is placing new demands on the
packing industry, laminated products including form-fill-seal pouches,
laminated tubes and tetra packs. The large growing middle class, liberalization
and organized retail sector are the catalysts to growth in packaging
products/materials. Fastchanging food habits are also likely to give boost to
the flexible packaging market, especially the pouch and microwave friendly
products.
Flexible packaging consists of multi-layer laminated sheets of plastics (PVC,
LDPE, HDPE, BOPP, BOPET), paper cloth or metal foils, used separately or in
combination of various packaging applications. Flexible packaging has a unique
set of properties to ensure toughness, moisture, aroma retention, low odour,
taste etc. Flexible packaging laminates are used for packaging of processed food
(e.g. Biscuits, snacks, confectionery, spices, wheat flour, rice, pulses etc.),
personal products (e.g. shampoo soaps, detergents, hair dye etc.), beverages
(e.g. tea, coffee, milk products, baby food etc.), other items like lubricants,
pesticides, pharmaceuticals etc.
Flexible packaging materials offer certain special advantages in terms of
their intrinsic properties viz.
* Strength properties such as puncture, tensile and tear strength.
* Water vapour permeability.
* Gas permeability
* Freedom for odour and toxicity.
* Aroma retention
* Shelf life.
The demand for flexible packaging is mainly derived from the demand of the user
industries like processed food, personal products, beverages, lubricants,
pesticides and pharmaceuticals etc. as also from the changes in the packaging
pattern for the products of these industries. In order to achieve deep
penetration into the market and to reach masses, more and more companies are
shifting to smaller quantity packs using flexible packaging. Besides, flexible
packaging also offers many other advantages over the conventional packaging in
terms of greater flexibility cost reduction, aesthetic looks, handling, shelf
life etc. prompting more and more industries to shift their preference to
flexible packaging. Packaging Raw Materials - Poly Condensation(PET
Chips)
PET chips are mainly classified as polyester chips of film grade, yarn grade
and bottle grade. These chips are used as raw material for manufacturing of
polyester films, polyester yarn and PET bottles. The film grade chips is used
as one of the basic raw material for manufacturing polyester films.
The market for polyester and other films primarily used by the flexible
packaging industry is on an upswing. The demand both in the domestic as well as
international market has been growing steadily. However exceptional increase in
prices of petrochemical products especially that of PTA & MEG has resulted
in strain on profit margins but the position is expected to improve in the
current financial year.
The market for yarn and bottle grade chips in India are very competitive with
exceptionally low margin. The Company has therefore, strategically decided to
mainly concentrate on production of film grade polyester chips.
Packaging Raw Materials - Inks & Adhesives
Printing ink is used for printing on a substrate and then dried. Depending on
the process and end use, inks are classified into letterpress, lithographic,
flexographic, rotogravure and others.
The growth of the printing ink sector including that of rotogravure and
flexographic inks has been rapid. Many new and innovative products are being
introduced on a regular basis to meet the specific requirements of customers.
The requirements of the end users of the printing inks in coming times is
expected to be high gloss, instant setting, high speed, quick drying etc. To
keep pace with the growing requirements of end users, Research and Development
work towards modification of resins, structural vehicles, water-based inks,
enviro-friendly inks and introduction of innovative product range needs to be
undertaken.
Further, the future of the Indian ink industry is bright, however, the industry
is reeling under adverse impact of the higher material cost and requires
substantial investment in Research & Development.
The Company has confined itself to the production and marketing of flexographic
inks primarily used by flexible packaging industry. With increase in demand of
flexible packaging material, due to shift in customer preference and opening up
of organized retail, the demand for flexographic inks is increasing. Further,
the Company has indigenously produced the new generation cost effective
polyether base solventless adhesive system for flexipack, new ink system for
PVC profile and special coating for producing matt effect in laminates. These
products are now well established in the market against competitions.
Packaging Machinery
The Indian Capital Goods Industry has to play key role in achieving the
industrial growth rate. The development of a strong and vibrant engineering and
capital goods sector in India needs to have a strong engineering and capital
goods base that supplies the most sophisticated and state-of-theart machinery
and equipment to the various sectors of the economy.
The profit margins in the industry are by and large, driven by access to
technology and global markets, the ability to identify niche areas, efficient
inventory and debt management, good after sales services, ability to offer
solutions rather than products and product innovation and range.
Business Review
Plastic Film Business
The main products of this business are Polyester Films, BOPP Films, CPP Films
Metalised & Specialty films and Polyester a Chips etc.
BOPP film is primarily used for applications in packaging food products such as
confectionery, biscuits, bakery, pasta, dried foods, meats etc. It is used in
the form of over-wraps, crimp seal packs and pouches. BOPP film is also widely
used in wrapping cigarette cartons and tobacco-related products, bags for
ready-made garments, adhesive tapes and print lamination. The film has high
gloss and transparency and provides a strong moisture barrier, making it
suitable for packing many types of consumer products.
The Company's BOPP films are highly cost effective and functionally efficient
products. The technologically superior and highly dependable BOPP film produced
by the Company in its state-of-the-art ISO 9001-2000 certified plants can be
structured in up to three layers and tailored for almost any machine
requirements and is capable of meeting both rotogravure and flexographic
printing standards.
BOPET film is used in a wide range of applications, its barrier properties,
high tensile and dielectric strength, thermal and chemical stability and
toughness make it suitable for diversed applications. The film provides a
strong barrier to aroma retention and odour, which makes it especially suitable
for use in food packaging. The other applications are electric insulation,
office supplies, graphic arts, imaging and industrial. Its dimensional
stability and high tensile strength makes this film suitable for critical
applications such as audio, video and other magnetic tape applications. BOPET
film, one of the initial products of the Company, has not only succeeded in
retaining its market share but has also expanded its markets in today's dynamic
& rapidly changing packaging scenario. Produced in state-of-the-art ISO
9001-2000 certified plants in different range of microns, the BOPET films have
the capacity to sustain the high fidelity graphics and to meet the requirements
of both rotogravure as well as flexographic printing standards.
While the Company's facilities are capable to produce polyester chips of film
grade, yarn grade and bottle grade but it mainly concentrates on production of
film grade pet chips. The film grade chips are used as raw material for the
manufacturing of polyester films. The unit has made use of its state-of-the-art
batch processing manufacturing facilities for largely meetings its captive
demand.
Flexible Packaging Business
The main products of this business are laminates made with various combinations
of Polyester, Metalized Polyester, Aluminum Foil, Paper, BOPP, Poly and others
and supplied in roll form and in preformed pouches, manufacture of rotogravure
cylinders for various types of rotogravure printing, Anilox/Coating, Rollers
for flexo printing and Shims for holographic embossing and holograms and
printing ink and adhesives. The Company is market leader in this sector in
India.
The company has successfully developed several new packaging methods for
various applications suitable for Food Industry, the Bakery and Confectionery
Industry, Beverage Industry and the Personal Care products Industry. The
Company's strategy for product innovation together with cost leadership and
enhancing quality has led to the significant growth in sales and has become a
major supplier of packaging materials for various multinational corporations in
the FMCG sector.
The cylinder manufacturing facilities at the Company is a key strategic
initiative towards completing the process of integration. The Company has
capabilities to provide complete solution starting from art work/mock up stage
to producing final printing cylinders. The Company has capacity to produce over
47,000 printing cylinders annually. The rotogravure cylinders are used for both
its own needs as well as meeting the requirements of the customers both in
domestic as well as international markets. The Company's Cylinders are accepted
globally and have provided new opportunities and challenges across the
world.
The Company is one of the leading manufacturer of holographic films. It
provides its global customers with many value added products. Top niche gift
wrappers in holographic design in vogue and top of the line label stocks are
part of an attractive product range. The Hologram produced by the Company has
been well accepted in the domestic and international market. Hologram being low
cost with better margin is adding to the profitability
The Company offers for its customers a wide range of food storage Zipouch bags
with unique and innovative features for home and commercial purposes. Zipouch
bags are for ultimate convenience and diverse utility and are available through
a range of different sizes catering to the needs of an Indian household at an
international standard. Zipouch bags are well accepted internationally.
Other Business
The core activity in this business amongst others relate to manufacturing of
packaging, printing and allied machines.
The state-of-the-art manufacturing facilities of the Company at NOIDA (Uttar
Pradesh) have the capacity to manufacture both tailor made machines as well as
machines of specific design to suit the need and requirements of various
customers both in India and abroad. Its in house expertise and years of
experience has placed it in an advantageous position to access market
demands/needs and accordingly supply different machines of various grade,
design and specification to the customers to provide them a complete packaging
solution.
Future Outlook
Despite competition, the future of the Packaging industry is good; an expanding
middle class, ongoing liberalization and the arrival of organized retailing
will continue to catalyse the growth in packaging '
India's packaging market has an average growth of 14-20% per annum. Growth rate
is expected to double in coming years with change in consumer needs and large
scale retailing. Modern day packaging is different from mere 'packing'. In
today's visual society, survival of a product hinges on smart packaging. The
highly visible and catalytic role of packaging is abetted by the widespread
branding of products and also the rapidly changing consumer preferences. The
dominant role of packaging can be inferred from World Packaging Organization's
(WPO) slogan, 'Better Quality of Life Through Better Packaging'. In order to
survive in present day packaging industry, the packaging must meet the criteria
of safety, convenience and attractiveness.
Flexible packaging is gaining wider acceptance because of the protection it
offers to the product against climatic and atmospheric conditions like
moisture, heat and chemical reaction. The convenience factor in terms of
handling.the product and the cost benefits can be counted as the extra
privileges. Flexible packaging finds varied use because of its ability to
provide strength, moisture resistance, aroma retention, gloss, grease
resistance, heat retention, sealability, printability and low odour.
The following are key growth drivers for future growth of Flexible packaging
industry:
* Increasing industrialization and expected emergence of the organized retail
industry in developing nations of the world to increase use of flexible
packaging products.
* Increasing number of multinational food and retailing companies, which are
expected to increase the demand for sophisticated plastic-based flexible
packaging products.
* Increase in plastic packaged processed and fresh food.
* Increased use of small flex pack pouches for shampoo, tooth powder, tea and
other such products.
* Increased export of ready-made garments due to the relaxation of textile quotas
internationally; these garments are generally required to be packaged in
plastic bags.
The growth and development of cylinder business is linked to the growth and
development of packaging industry. With the opening of the economy, the
opportunities for packaging business are gradually increasing both in the
domestic as well as in the international market. The increasing demand for
flexible packaging materials will give an advantage of growth to the
Rotogravure Cylinder business.
Industrial inks and polyester chips, some of the other products of the Company
are being used by the flexible packaging industry as their basic raw materials.
The basic nature of the business of the Company makes it quite dependent on the
growth and development of the flexible packaging & allied industry. The
entry of multinational companies into various sectors in India has a tremendous
positive impact on the growth of the flexible packaging industry and it is
poised for a healthy growth in the years to come.
The Company's policy to expand its converting machines business in the
international market and to introduce new and customer friendly packaging and
converting machines having better usage and utility is eliciting positive
response.
FIXED ASSETS
A) Tangible Assets
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Plant and Machinery
·
Electrical Installations
·
Office Equipments
·
Furniture and Fixtures
·
Vehicles
B) Intangible Assets
·
Software
Attached Web
Details
Uflex is a Multi Million Group headquartered
at Noida, on the periphery of New Delhi, India and having manufacturing
facilities in India & Dubai. UAE, offices in Europe and North America and
market presence in 80 countries around the world. Uflex facility enjoys ISO
9001 and ISO 14001 certifications and has FDA and BGA approvals. For their
products, Uflex is part of the D&B Global Database and winner of various
prestigious national and international awards like the top exporter of BOPET
and BOPP films, and the Worldstar award for packaging excellence. FPA, AIMCAL
and the Dupont Awards in 2004-2005 are the latest in this series. Uflex Group
came into existence in 1983 and has grown into one of the biggest multi
integrated packaging groups in the world. The group is a multi faceted
organization which has backward integrated its operations from manufacture of
Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metallized
form), Coated Film, Laminates, Pouches, Holographic films Gravure cylinders,
Inks and adhesives to all types of packaging & printing machines, offering
total flexible packaging solutions to the entire world.
Uflex has always been dedicated to the industry
giving technical know-how and being the trend-setter in the flexible packaging
industry . Uflex has always been on the edge of innovation and endeavors to be
the first to come up with innovative products that cater to the changing
demands of the packaging industry. Experience and expertise in all spheres of
packaging gives Uflex the insights of all the latest developments and
innovations that are taking place around the world and helps to be in the sync
with their customer requirements and quality concerns.
As
part of the Uflex Group, they have over twenty years of experience and know-how
in polymer technology, a record of success and innovation and are a publicly
traded company in the DSE since 1989, manufacturing and supplying products and
delivering services that are world class, world wide.
Milestone
Oct 2007 Launched
the operation of 1.85mtr wide Thermal Lamination Machine for the production of
Thermal Lam Bopp Film with a capacity of 3600 TPA
Oct 2007 Launched
the operation of fifth line, 8.7mts wide for the production of BOPET Films with
a capacity of 25000 MT/annum.
July 2005 A fourth Metallizer , with a capacity of 6000TPA was
installed with plasma treatment facility.
March 2005 A state of art polyester line with a capacity of 20000TPA
was set up in Jabel Ali Fee Zone, UAE.
July 2004 A third Metallizer with a capacity of 6000 TPA was
installed in Jabel Ali Free Zone, UAE.
April 2004 Launched the
operation of the third line for the production of BOPET Films with a capacity
of 20000 MT/annum.
December 2003 Launched the operation of the
second line for the production of BOPP Films with a capacity of 15000 MT/annum.
October 2003 Second Metallizer, with a capacity of 6000 MT/annum was
installed.
March 2003 Cast Polypropylene film line with a capacity to produce
6000 TPA installed to produce CPP films.
July 2002 First Metalliser with a capacity of 6,000TPA installed.
June 2001 M/S. Uflex America
Incorporated, located in North Carolina, U.S.A., formed as a wholly owned
subsidiary of M/S. Uflex Limited.
January 1997 Commercial production of Polyethylene Teraphthalate chips
started.
June 1996 Launched the
operation of the first line for production of BOPP films. Production
capacity:20,000 TPA.
January 1996 Launched the
operation of second line for the production of BOPET films. Production capacity:20,000
TPA.
November 1994 Launched the
operation of First line for the production of BOPET films under Production
capacity:20,000 TPA.
February 1990 Formation of Uflex Foods Limited for mushroom plantation.
June 1988 Formation of
Uflex Limited FIL is the largest manufacturer of polyester, polypropylene and
metallized films in India.
December 1985 Formation of FCL Technologies and Products Limited.
May 1984 Formation of Uflex Engineering Limited.
September 1983 Formation
of the Uflex Group of companies. Today it is a US$ 600 Million company offering
complete Flexible Packaging solutions worldwide.
Manufacturing
Facilities
In their
state-of-the-art, twenty-four hour, manufacturing facility, they produce a vast
variety of Plastic films suitable for a wide range of applications. All
their plants are imported from Europe
and the US. Their machines not only have greater capacity, they can run at very
high speeds and can accommodate product widths of up to 7 meters, producing
plain, corona treated or chemically coated films.
They have three
production lines for manufacturing Biaxially Oriented Polyethylene Terapthalate
Films (BOPET) with a capacity of over 54,000 Metric Tonnes per annum. Sold
under the brand name of FLEXPET™ and available in the thickness range of 10 to
50 microns, these films offer excellent machinability, dimensional stability,
clarity, moisture and gas barrier, high tensile strength, outstanding
durability, runnability, printability, surface smoothness and resistance to
tear and abrasion. FLEXPET™ is suitable for various applications like printing
and packaging, thermal lamination, metallising, hot stamping, electrical
insulation, holography, synthetic yarn etc.
Biaxially
Oriented Polypropylene (BOPP) film line has an annual production capacity in
excess of 18,000 Metric Tonnes and produces film of high strength, dimensional
stability and stiffness, with excellent barrier to moisture and gas and is heat
sealable on one or both sides. Sold under the brand name of FLEXOPP™ these
films find applications in print lamination, reverse print & lamination,
pressure sensitive adhesive tapes, release applications, decorative
applications, reams and sheet for manual wrapping, bag application, print and
pouching, cable wrapping, vacuum metallising base film, overwrap, printing and
lamination.
Starting with
the Polyester and Polypropylene film lines, their plant expansion has never ceased. Increasing production capacity
to meet the demand for film in the domestic and international markets, Flex put
up two state-of-the-art, high performance, Metallisers recently with a total
capacity of 11,000 Metric Tonnes per annum, producing barrier metallised films,
sold under the brand name of FLEXBARRIERMET™, that can be used for converting,
packing, laminating, insulation ducting, electronic goods packaging, metallic
yarns and in other decorative applications. Engineered to manufacture a high
degree of barrier metallised films with optical density ranging from 0.5 to 3,
this metalliser offers excellent barrier properties to substrates like
polyester film (9-50 microns), BOPP film (10-80 microns), CPP films (18-40
microns), LDPE films (25-50 microns), Nylon (12-50 microns) which can be
barrier metallised upto a width of 2,450mm.
Expanding the
area of business and diversifying the line of products, Flex has also set up a
five layered Cast Polypropylene film line with a capacity of 6,000 Metric
Tonnes per annum. Designed to meet the functional requirements of the user,
these films offer better heat seal strength and opticals, excellent moisture
barrier, metallisation and twistability and higher tear strength, weld strength
and yield as compared to many other films. These CPP films are available in the
thickness range of 20-150 microns with a maximum width of 2,400mm and corona
treatment on either one or both sides. The wide range of applications for these
films include lamination and metallised lamination film for packaging, bakery
and confectionary wraps, biscuits and cake packaging, textile bags, twist and
metallised twist wraps, anti fog film for fruit, vegetable and bulk flower
wrapping, over wrap of toilet papers, napkins and health care products etc.
Thus they are
continually updating their “World Class
Manufacturing” capabilities by investing in new equipment, technology and
research and development.
Subsidiary
FLEX
MIDDLE EAST FZE, located in Dubai, UAE is a subsidiary of Uflex Group.
With an aim to serve their
customers spread all over the world, Uflex Films has invested over 50 million
dollars in a world class flexible films facility in Jebel Ali Free Zone, UAE,
thereby being the first company to do major investment in UAE by establishing
state of the art 7.2 metre wide Polyester film line, manufacturing polyester
film in plain and metallized forms. A second Polyester film line 8.7meters wide
has been commissioned & commenced its production w.e.f 1st Oct.2007 thereby
taking the total Polyester film capacity to over 45000 tons.
FLEX
AMERICA INC.
Uflex has been catering to the
North and South American markets since the inception of their operations of
plastic films in 1995. They are supplying to the industrial and packaging
sector there. In view of their expanding business and also to provide better
service to the customers, Uflex has incorporated a marketing and distribution
subsidiary, Uflex America Inc. located in North Carolina, USA. Their customers
there have appreciated their commitment to the market and their business
Group Company
UFLEX
ENGINEERING LIMITED
As one of the leading
engineering companies in India, FEL manufactures a wide range of packaging and
converting machines. It also undertakes tailor made fabrication jobs for
various industries with a primary focus on the oil, gas and construction
industry.
The latest addition is the
division that manufactures electronic sensor controlled automobile dippers to
be used in vehicles. www.flexenggltd.com
FCL
TECHNOLOGIES AND PRODUCTS LIMITED
With a US$6.5 million
manufacturing facility at Noida, near Delhi, producing inks and adhesives and a
72,000TPA polyester chips manufacturing plant at Malanpur, near Delhi. This has
now diversified into shoe adhesives, holographic coatings, UV coatings, release
lacquers, antifreeze coolants.
UFLEX
FOODS LIMITED
A 100% export oriented
state-of-the-art freeze dried mushroom manufacturing plant is set in the city
of Dehradun in the foothills of the Himalayas.
UFLEX
LIMITED
This company is divided into the
FILM DIVISION and CONVERTING DIVISION.
The Film Division is one of the
largest manufacturer and supplier of Biaxially Oriented Polyethylene
Teraphthalate films, Biaxially Oriented Polypropylene Films and metallized
films in the world.
With a 25,000TPA strong
converting capacity the Converting division of the Uflex Group is a leading
converter in India producing laminates in roll form, preformed pouches as well
as rotogravure cylinders.
Management
Policy
·
Proceed always with ambition and youthfulness
·
Sustain a working environment that attracts, retains and develops
committed share in the success of the company
- Respect sound
theory, develop fresh ideas and make the most effective use
- Enjoy the
work and always brighten the working atmosphere
- Strive
constantly for a harmonious flow of work
- Be ever
mindful of the value of research and endeavour
Certificates
/ Awards / Membership
Year
2005-06
Dun & Bradstreet India
AIMCAL- Member
TENTH DUPONT AWARDS
DNV- ISO 9001 : 2000
DNV- ISO 14001 : 2004 (Environmental Management
System)
ERA Member
Year
2004
AIMCAL 2004- Award for excellent decorative display
Year
2002
PROPACK CAPE 2002
Year
2000-01
The Plastic Export Promotion Council-
Second Best Exporter of Polyester Film
The Plastic Export Promotion Council-
Second Best Exporter of BOPP Film
Year
1999-00
The Plastic Export Promotion Council-
Second Best Exporter of Polyester Film
The Plastic Export Promotion Council-
Second Best Exporter of BOPP Film
Year
1998-99
The Plastic Export Promotion Council-
Second Best Exporter of BOPP Film
The Plastic Export Promotion Council-
Second Best Exporter of Polyester Film
Year
1997-98
The Plastic Export Promotion Council
The Plastic Export Promotion Council
Year
1998
Institute Frsenius July 24th 1998
Year
1997
Package Printing : 1997 Excellence Awards Holographic Semi-Standup Pack
Package Printing : 1997 Excellence Awards Consumer Pack for CTC Leaf Tea
Package Printing and Converting - March 3, 1997
Institute Frsenius - September 24th 1997
Year
1996-97 PLEXCOUNCIL
- Export Award
Year 1996 Institute of Packaging Professionals -
Certification of Participation : Reclosable Standup Pouch
Institute of
Packaging Professionals - Certification of Participation : Carry Bag for Amezer
Steel Radial Tyre and Tube
Trading House
Year
1995-96
PLEXCOUNCIL : Second Best Exporter of Bopp Film
Year
1995
Worldstar For Packaging Excellence
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 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.45.77 |
|
UK Pound |
1 |
Rs.80.67 |
|
Euro |
1 |
Rs.64.20 |
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 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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/normal. |
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 |
|