MIRA INFORM REPORT
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Report Date : |
14.04.2011 |
IDENTIFICATION
DETAILS
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Name : |
ESTER INDUSTRIES LIMITED (During 1989-1990) |
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Formerly Known
As : |
ESTER INDIA LIMITED |
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Registered
Office : |
Sohan Nagar, P.O. Charubeta, Khatima, Dist. Udham Singh Nagar,
Uttarakhand- 262308 |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
04.02.1985 |
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Com. Reg. No.: |
20-15063 |
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CIN No.: [Company
Identification No.] |
L24111UR1985PLC015063 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
DELE02870A |
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PAN No.: [Permanent
Account No.] |
AAACE0119K |
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Legal Form : |
A Public Limited Liability Company.
The company’s shares are listed on the Stock Exchanges |
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Line of Business
: |
Manufacturer of Polyester. |
RATING & COMMENTS
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MIRA’s Rating : |
A (60) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit
: |
USD 7135000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are to be
usually correct. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Jain |
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Designation : |
Company Secretary |
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Date : |
31.03.2011 |
LOCATIONS
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Registered
Office : |
Sohan Nagar, P.O. Charubeta, Khatima, Dist. Udham Singh Nagar,
Uttarakhand– 262 308, India |
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Tel. No.: |
91-5943-250153-57 |
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Fax No.: |
91-5943-255158 |
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E-Mail : |
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Website : |
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Head Office : |
DLF Building No.8, Tower-A, 2nd Floor, DLF City, Phase-II,
Sector-25, Gurgaon-122002, Haryana, India |
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Tel. No.: |
91-124-4572100 –
30 |
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Fax No.: |
91-124-4572199 |
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E-Mail : |
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Overseas office : |
ESTER
INTERNATIONAL ( C/o. 350 5th Avenue Suite, 5416, E-mail-info@esterindustries.com |
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Branches : |
Mumbai B-009, Kemp Plaza, Near 5 D Restaurant, Mind Space, Chincholi Bandar
Road, Malad (West), Mumbai – 400064, Maharashtra, India Tel No. :- 91-22-40034526 / 40034527 3008 A, Gowri Apartment, RMV Ext. 2nd
Stage, New Tel./Fax- 91-80-23625243. Mobile No.
– 9845118470 E-mail - info@esterindustries.com |
DIRECTORS
As on
31.03.2010
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Name : |
Mr. A. K.
Singhania |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. M. R. Hosangady |
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Designation : |
Director |
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Name : |
Mr. H. S. Majumder - |
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Designation : |
Director |
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Name : |
Mr. V. B. Haribhakti |
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Designation : |
Director |
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Name : |
Mr. A. P. Sarwan |
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Designation : |
Director |
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Name : |
Mr. A. K. Newatia |
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Designation : |
Executive Director |
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Name : |
Palem Srikant Reddy - |
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Designation : |
Director |
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Name : |
D K Dosi- |
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Designation : |
Executive Director |
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Name : |
Mr. M .S Ramachandran |
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Designation : |
Director |
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Name : |
Mr. Dinesh Kothari |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. S. K. Jain |
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Designation : |
Company Secretary |
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Name : |
Mrs. Shweta Yadav |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
(As on 31.12.2010)
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Names
of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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600 |
- |
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9,172,650 |
14.58 |
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9,173,250 |
14.59 |
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33,561,496 |
53.36 |
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33,561,496 |
53.36 |
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Total shareholding of Promoter and Promoter Group (A) |
42,734,746 |
67.95 |
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(B) Public Shareholding |
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27,700 |
0.04 |
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35,300 |
0.06 |
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300 |
- |
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Financial
Institutional Investors |
85.998 |
0.14 |
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|
149,298 |
0.24 |
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5,185,697 |
8.25 |
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8,590,116 |
13.66 |
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2,931,718 |
4.66 |
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3,302,131 |
5.25 |
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693,335 |
1.10 |
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Foreign
Corporate Bodies |
2,608,696 |
4.15 |
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Trust and
Foundation |
100 |
-- |
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20,009,662 |
31.82 |
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Total Public shareholding (B) |
20,158,960 |
32.05 |
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Total (A)+(B) |
62,893,706 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
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Total (A)+(B)+(C) |
62,893,706 |
100.00 |
BUSINESS DETAILS
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Line of Business
: |
Manufacture of Polyester. |
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Products : |
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PRODUCTION STATUS As on 31.03.2010
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Polyester Chips |
MT |
36000 |
36177 |
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Polyester Film |
MT |
27000 |
30122 |
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Engineering Plastic |
MT |
14400@ |
5996 |
@
Operating Capacity of Extruder
installed in December 2007 increased by 1,200 MT P.A. and a new
Extruder of 9,600MT P.A. capacity
installed in November 2009.
GENERAL
INFORMATION
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No. of Employees
: |
1500 (Approximately) |
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Bankers : |
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Facilities : |
Notes: 1. Rupee term loans i)
From Body Corporate (Tata Capital Limited) of Rs. 24.365 millions ( Previous
Years Rs. nil) is secured by first exclusive charge by way of hypothecation
of Company’s Engineering Plastics Extruder No: 3 and further secured by
irrevocable guarantee of a Director of the Company and a promoter Company. ii)
From Banks of Rs. 106.710 millions (Previous Year Rs. 108.543 millions) -
Secured by first mortgage created by way of deposit of title deeds in respect
of the Company’s immovable properties, both present & future and first
charge by way of hypothecation of Company’s all balance movable assets (save
and except inventories, book debts, vehicles acquired under vehicles loans
and machinery acquired through term loan taken from body corporate), ranking
pari passu inter-se. Rupee Term Loans from banks are further secured by
second charge by way of hypothecation of stocks of raw material, finished
goods, semi finished goods, stores and spares, book debts and other
receivables (both present and future) and by irrevocable guarantees of a
Director of the Company and a promoter Company. 2.
Working Capital Loans from Banks are secured by first charge by way of
hypothecation of stocks of raw materials, finished goods, semi finished
goods, stores and spares, book debts and other receivables (both present and
future) and further secured by irrevocable guarantees of a Director of the
Company and a Promoter Company. Working Capital Loans are further secured by
way of
second charge in respect of Company’s immovable properties and movable fixed
assets. 3.
Vehicle loans are secured by hypothecation of specific vehicles acquired out
of proceeds of the Loans. 4.
Term Loans and Vehicle Loans installments falling due within next 12 months
Rs. 64.476 millions (Previous Year Rs.33.399 millions).
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Banking
Relations : |
-- |
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Auditors : |
Statutory
Auditors S. R. Batliboi and Company Chartered Accountants Gurgaon Concurrent
Auditors T. R. Chadha and Company Chartered Accountants |
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Associates |
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Subsidiaries : |
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CAPITAL
STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.5/- each |
Rs.750.000 millions |
|
600000 |
Cumulative Convertible Preference Shares |
Rs.50/- each |
Rs.30.000 millions |
|
8000000 |
Redeemable Cumulative Preference Shares |
Rs.50/- each |
Rs.400.000 millions |
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Total |
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Rs.1180.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
62893706 |
Equity Shares |
Rs.5/- each |
Rs.314.469 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
314.469 |
277.512 |
305.488 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1469.366 |
1133.326 |
825.287 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1783.835 |
1410.838 |
1130.775 |
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LOAN FUNDS |
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1] Secured Loans |
543.857 |
461.972 |
806.890 |
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2] Unsecured Loans |
0.000 |
71.331 |
55.948 |
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TOTAL BORROWING |
543.857 |
533.303 |
862.838 |
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DEFERRED TAX LIABILITIES |
180.132 |
157.203 |
119.617 |
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TOTAL |
2507.824 |
2101.344 |
2113.230 |
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APPLICATION OF
FUNDS |
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FIXED ASSETS [Net
Block] |
1357.869 |
1402.306 |
1401.541 |
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Capital
work-in-progress |
366.118 |
4.486 |
19.054 |
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INVESTMENT |
2.693 |
1.098 |
1.131 |
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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 |
391.364
|
290.008
|
322.734
|
|
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Sundry Debtors |
511.516
|
383.214
|
445.937
|
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Cash & Bank
Balances |
181.775
|
79.895
|
130.978
|
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Other Current
Assets |
28.270
|
21.676
|
39.916
|
|
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Loans &
Advances |
179.571
|
197.417
|
128.934
|
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Total Current Assets |
1292.496
|
972.210
|
1068.499 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Sundry Creditors |
148.536
|
98.456
|
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Other Current
Liabilities |
240.078
|
98.453
|
297.706
|
|
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Provisions |
122.738
|
82.323
|
85.102
|
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Total Current Liabilities |
511.352
|
279.232
|
382.808
|
|
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Net
Current Assets |
781.144
|
692.978
|
685.691
|
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MISCELLANEOUS
EXPENSES |
0.000 |
0.476 |
5.813 |
|
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TOTAL |
2507.824 |
2101.344 |
2113.230 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
|
|
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Income |
3953.706 |
3724.096 |
3191.821 |
|
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Other Income |
10.588 |
9.245 |
23.348 |
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TOTAL (A) |
3964.294 |
3733.341 |
3215.169 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of goods for Resale |
14.528 |
1.521 |
1.629 |
|
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Manufacturing Expenses |
2838.867 |
2530.319 |
2408.087 |
|
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|
Increase/(Decrease) in Finished Goods |
(32.076) |
13.746 |
(33.413) |
|
|
|
Personnel Expenses |
204.617 |
163.205 |
147.477 |
|
|
|
Administrative Expenses |
197.106 |
168.800 |
143.585 |
|
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Selling Expenses |
123.473 |
144.373 |
153.310 |
|
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TOTAL (B) |
3346.515 |
3021.964 |
2820.675 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
617.779 |
711.377 |
394.494 |
|
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|
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|
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Less |
FINANCIAL
EXPENSES (D) |
62.822 |
96.345 |
129.701 |
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
554.957 |
615.032 |
264.793 |
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|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
141.532 |
134.168 |
139.745 |
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|
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PROFIT BEFORE
TAX (E-F) (G) |
413.425 |
480.864 |
125.048 |
|
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|
|
|
|
|
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|
Less |
TAX (H) |
134.769 |
146.525 |
24.894 |
|
|
|
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|
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|
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|
PROFIT AFTER TAX
(G-H) (I) |
278.656 |
334.339 |
100.154 |
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
319.827 |
45.962 |
NA |
|
|
|
|
|
|
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|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
20.899 |
0.000 |
NA |
|
|
|
Transfer to Capital Redemption reserve |
0.000 |
27.976 |
NA |
|
|
|
Dividend on pref. shares |
0.000 |
0.026 |
NA |
|
|
|
Proposed Dividend |
62.894 |
27.751 |
NA |
|
|
|
Tax on Dividend |
10.446 |
4.721 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
504.244 |
319.827 |
NA |
|
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|
|
|
|
|
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|
|
EARNINGS IN
FOREIGN CURRENCY |
835.735 |
1033.752 |
1146.789 |
|
|
|
|
|
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IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
966.003 |
126.709 |
198.036 |
|
|
|
Stores & Spares |
36.903 |
43.195 |
41.128 |
|
|
|
Capital Goods |
257.171 |
119.873 |
29.377 |
|
|
TOTAL IMPORTS |
1260.077 |
289.777 |
268.541 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.85 |
6.02 |
1.80 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
|
Net Sales |
1104.090 |
1474.550 |
1983.240 |
|
Total Expenditure |
945.850 |
907.220 |
1088.460 |
|
PBIDT (Excl OI) |
158.240 |
567.330 |
894.780 |
|
Other Income |
0.890 |
39.200 |
4.200 |
|
Operating Profit |
159.130 |
606.530 |
898.980 |
|
Interest |
18.220 |
23.820 |
30.020 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
140.910 |
582.710 |
868.960 |
|
Depreciation |
36.210 |
37.600 |
43.090 |
|
Profit Before Tax |
104.700 |
545.110 |
825.870 |
|
Tax |
37.350 |
178.010 |
277.740 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
67.350 |
367.100 |
548.130 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
67.350 |
367.100 |
548.130 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.03 |
8.96 |
3.12 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.46 |
12.91 |
3.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.60 |
20.25 |
5.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23 |
0.34 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.59 |
0.20 |
0.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.53 |
3.48 |
2.79 |
LOCAL
AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS :
(Rs.
in Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Micro and Small Enterprises |
0.000 |
0.000 |
NA |
|
Other than Micro and Small Enterprises |
148.536 |
98.456 |
NA |
|
Total |
148.536 |
98.456 |
NA |
HISTORY
Promoted by Sitaram Singhania, (managing director of Lohia Machines),
along with J P Shroff, (an NRI businessman based in
The Company is having two wholly owned foreign subsidiaries i.e Ester
International (USA) Limited and Ester Europe GmbH. The Company is also planning
to set up a one more subsidiary in
Subject is considering various options, including private placement with FIIs,
to raise around Rs 140.000 millions to pay the overdue interest as per the
revival package.
The company's expansion-cum-modernisation programme with an investment of Rs
1250.000 millions for increasing the annual production capacities of Chips from
20000 to 36000 MT and Polyester Film from 4000 to 18000 MT commenced commercial
production from 1st January, 1998.
In 2001 the Company declared as a Sick Industrial Undertaking in October, 2001
and Rehabilation package was approved by BIFR for one time settlement of
Rs.552.040 millions.
In 2004, the Company successfully completed the modernization of Chips Plant
and this modernization helps the Company to produce the chips at substantially
lower costs.
OPERATIONS
During the year the Company has earned Net Profit after Tax
of Rs. 278.656 millions as compared to Rs. 334.339 millions in the year
2008-09. The sales including excise duty and other income during the year under
review are Rs. 4227.169 millions as compared to Rs. 4051.406 millions in the
previous year, an increase of 4.3%. This increase is mainly due to increase in
sale of Engineering Plastics both in quantitative & value terms. The
production of Polyester Film was higher at 30122 MT as compared to 29534 MT
during 2008-09 as a result of continuous process improvements. The capacity
utilisation in Polyester Film remained higher than the operating capacity at
111.6%.
Sales of Compounded and Unfilled Engineering Plastics
increased from 2744 MT to 5833 MT, an increase of 112.6%. Sales (net of excise
duty) in value terms increased from Rs. 341.123 millions to Rs. 656.945
millions, an increase of 92.6%. Sales of Polyester Chips has increased both in
quantitative and value terms by 11%. Exports accounted for 20.3% of the
turnover during the year.
Interest and other Financial Expenses reduced significantly
during the year due to repayment of term loans and lower utilisation of working
capital facilities on account of retention of profits.
Net Profit after Tax has reduced on account of following
exceptional items viz: (a) Mark – To – Market (MTM) losses of Rs. 40.213
millions towards forward contracts booked to hedge the foreign currency
liabilities related to Capital Goods under Polyester Film Expansion Project, (b)
increase of Rs. 16.000 millions in managerial remuneration on account of
payment of commission on profits earned to Whole Time Director and (c) increase
of Rs. 42.00 lacs in Administrative and Other Expenses on account of payment of
commission on profits earned to Non- Executive Directors..
Company continues to remain focused on development of new
products and during the year, certain new value added niche products were
developed and commercialised, both in Polyester Film and Engineering Plastics.
Environment friendly/Cost reduction initiatives like
installation of Bio-mass (Rice Husk) based Thermic Fluid Heater and Glycol
Ejectors implemented in later part of the year 2008-09 have given the envisaged
results during
the year.
Details on operations and a view on the outlook for the
current year are provided in the ‘Management Discussion & Analysis Report’
which forms an integral part of this Annual Report.
CAPITAL
Pursuant to the resolution passed by the Shareholders of the
Company at the Extra Ordinary General Meeting (EGM) held on 21st
October 2009, the Company has by way of preferential issue allotted 21,73,914
Share Warrants of face value of Rs. 5.00 each to Promoters, 26,08,696 Zero
Coupon Unsecured Fully and Compulsorily Convertible Debentures (FCD) of face
value of Rs. 5.00 each to an Independent Overseas Investor and 26,08,696 Zero
Coupon unsecured Fully and Compulsorily Convertible Debentures (FCD) of Face
Value of Rs. 5.00 each to Person Acting in Concert with Promoters for cash at a
premium of Rs. 18.00 as part financing of the Polyester Film Expansion Project.
Board of Directors in the meeting dated 24th December 2009 has converted these
Share Warrants and FCDs into 73,91,306 equity shares at a price of Rs. 23.00 including
premium of Rs. 18.00 per equity share.
ENGINEERING
PLASTICS
The company commissioned new extruder for Compounded
Engineering Plastics of 9,600 MTPA capacity in November 2009, thereby taking
the total capacity to 14,400 MTPA. During the year, capacity utilisation, on
pro rata basis, was 55.6%. Company is confident of improving capacity
utilization during 2010 –11 and achieving near 100% capacity utilization in
2011–12.
After commissioning of extruder in November 2009, company
has been able to develop Poly Carbonate and ABS compounds and expects to
commercialise sales on a larger scale in the year 2010 – 11.
EXPANSION PROJECTS
During
the year, Company has undertaken expansion of Polyester Film capacity. Progress
in the implementation of project is going on as per schedule. Financial closure
for the project is already achieved. Company is going for cost effective
‘Continuous Polymerization and Direct Casting’ technology. Project is likely to
be commissioned by December 2010. Company has also undertaken expansion of
Polyester Chips by putting up a Continuous Polymerization plant of 70,000 MTPA
capacity.
Besides
these expansions, company is installing a Metallizer with a capacity of 7,200
MTPA at a project cost of Rs. 200.000 millions, thereby taking the total
capacity to 13,200 MTPA. Metallizer is likely to be commissioned by October
2010.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
|
31.03.2010 (Rs.
In Millions) |
31.03.2009 (Rs.
In Millions) |
|
a)
Excise Duty and Customs Duty pending hearing of appeals
/ writ petitions : |
|
|
|
0.806 |
0.806 |
|
0.695 |
0.695 |
|
2.696 |
2.696 |
|
16.420 |
16.420 |
|
20.692 |
20.692 |
|
1.172 |
1.172 |
|
5.771 |
5.771 |
|
3.985 |
4.021 |
|
0.000 |
6.383 |
|
Total (B) |
52.237 |
58.656 |
|
|
|
|
|
b)
Show Case notices related to denial of Service
Tax credit and Excise rebate on export |
0.259 |
0.259 |
|
c)
Income Tax : |
|
|
|
Demand raised during assessment (A.Y. 89-90) |
0.184 |
0.184 |
|
Demand of MAT (including interest) (A.Y.04-05) |
4.663 |
4.663 |
|
Demand of MAT (including interest) (A.Y.05-06) |
1.705 |
1.705 |
|
d)
F. Labour Cases |
|
|
|
Workers, suspended, pending in High Court, |
0.167 |
0.167 |
|
Total (A to F) |
59.215 |
65.634 |
|
e) Other Claims not acknowledged as Debts |
4.670 |
4.600 |
|
f) Contingent liability in respect of party
paid up shares |
0.515 |
0.515 |
|
g) Bonds amounting to Rs.51.000 millions executed
in favour of Central excise and customs authorized out of which amount to be
re-credited on receiving the proof of exports is yet to be submitted. |
26.406 |
8.869 |
Based on favourable decisions in similar cases, legal opinion tajen by
the Company, discussions with the solicitors etc. the company believes that
there is fair chance of decisions in its favour in respect of all the items
listed (B) to (G) above and hence no provision is considered necessary against
the same
MANAGEMENT DISCUSSION
AND ANALYSIS
BUSINESS PERFORMANCE
The company is engaged in the
manufacture and sale of PET Film and Engineering Plastics. Majority of the
PET Chips produced is consumed captively
in the PET Film business.
|
|
Quantity
Produced (MT) (During 2009-10) |
Quantity
Produced (MT) (During 2008-09) |
Growth |
|
PET Film |
30122 |
29534 |
2.0% |
|
PET Film – Metallised |
4936 |
5167 |
(4.5%) |
|
PET Chips |
36177 |
35873 |
0.8% |
|
Engineering Plastics |
5996 |
2683 |
123.5% |
|
|
|
|
|
|
|
Quantity Sold (MT) (During 2009-10) |
Quantity Sold (MT) (During 2008-09) |
Growth |
|
PET Film |
24954 |
24224 |
3.0% |
|
PET Film – Metallised |
4888 |
5253 |
(6.9%) |
|
PET Chips |
6084 |
5483 |
10.9% |
|
Engineering Plastics |
5833 |
2744 |
112.6% |
|
|
|
|
|
|
|
Sales Value (Net of Excise
Duty) (Rs. in Lacs) (During 2009-10) |
Sales Value (Net of Excise
Duty) (Rs. in Lacs) (During 2008-09) |
Growth |
|
PET Film |
23550.72 |
24577.67 |
(4.2%) |
|
PET Film – Metallised |
5626.61 |
5935.32 |
(5.5%) |
|
PET Chips |
3622.47 |
3303.42 |
9.7% |
|
Engineering Plastics |
6569.45 |
3411.23 |
92.6% |
|
Others |
167.85 |
13.32 |
1160.1% |
|
TOTAL |
39537.10 |
37240.96 |
6.2% |
|
|
|
|
|
|
|
(Rs.
in Lacs) (During
2009-10) |
(Rs.
in Lacs) (During
2009-10) |
Growth |
|
EBIDTA |
6177.79 |
7113.76 |
(13.2%) |
|
PBT |
4134.25 |
4808.64 |
(14.0%) |
|
PAT |
2786.56 |
3343.39 |
(16.7%) |
Total Sales revenue (net of excise
duty) for the Company has increased by 6.2%. Profit before Tax and Profit after
Tax have decreased by 14% and 16.7% respectively.
Engineering
Plastics accounted for Rs. 656.945 millions of sales revenue, an increase of
92.6% over last year. During the year under review, sales & production of
Engineering Plastics both in quantitative & value terms showed significant
improvement. Reduction in EBIDTA, PBT and PAT during 2009-10 was mainly on
account of Mark – To – Market (MTM) losses of Rs. 40.213 millions towards
forward contracts booked to hedge the foreign currency liabilities related to
Capital Goods under Polyester Film Expansion Project
POLYESTER
FILM BUSINESS
In this
world of fast changing life styles, consumers prefer packaging to be light
weight, shatterproof, cost effective, aesthetically appealing, easy to handle
and with good protection. The answer to achieving all these properties
simultaneously is to use the various options of Oriented Films to make Flexible
Packaging Laminates. The Flexible packaging materials have been playing a major
role in almost all the industries, especially the food packaging and personal
care products, where demand has remained robust despite the global economic
downturn. PET Film has traditionally been the largest constituent of the
Oriented Film business in
- PET Film is known for
its high tensile strength, chemical & dimensional stability,
transparency, gas & aroma barrier, and electrical insulation.
- PET Film is an
excellent material for high quality printing.
- PET Film has superior thermal
resistance and its melting /softening range is much wider than other Films
(like BOPP) thereby making PET one of the easiest Films to use in Form
Fill and Seal (FFS) Machines / Pouching Machines etc.
- PET Film owing to its
inherent strength and properties, in most packaging applications, is
thinner than other Films by approximately 15 – 30%. PET Film is used as a
layer in Laminates containing Plain and / or Metalized PET Film to protect
food against oxidation and aroma loss so as to achieve long shelf life.
This is one of the largest applications of PET Film for all forms of
products including Coffee, Tea, Snack Foods, Mouth Freshener, Spices, and
Industrial Products etc.
BUSINESS
PROSPECTS
PET
Films can be broadly classified into Thin and Thick Films. Thin Films
constitutes nearly 70 % of the total PET Film demand. Demand for Thin PET Films
is estimated to grow at 6 - 8% per annum globally and 17 – 18% in the domestic
market. By far the largest end use for Thin PET Films is flexible packaging
which accounts for 65% of total Thin PET Film demand and this is Ester’s
primary target market. Flexible packaging is associated with food products,
personal & health care, household products, etc., which have remained
insulated from recent global economic recessionary trends.
The
growth in demand for PET Film in
- Continued economic
growth in
- Growth in demand for
convenience foods & personal care products, and pouches driven by
demographic and lifestyle changes. Increased investments in supermarkets,
hypermarkets and convenience retailers driving sales of packaged foods.
- Government Regulation to improve quality & safety of packaged
food products.
- Greater demand for sophisticated and attractive packaging of
products, proliferation of brand development, and niche products demanding
high quality printed packaging. Demand for Thin PET Film in
FUTURE PLANS and STRATEGY
- During the year, Ester undertook a project to expand PET Film
capacity at the existing location in Khatima in the state of Uttarakhand
with a view to leveraging economies of scale as well as ease of
implementation and operations. With this expansion, likely to be
commissioned by December 2010, company will be able to double its
production of PET Film. For this Expansion Project, Ester is adopting cost
effective ‘Continuous Polymerization and Direct Casting’ technology. To
the best of our knowledge, when this plant is commissioned, it would be
the third Direct Casting facility in the world.
- In addition to the PET Film Line, Metalising capacity is also being
expanded by 7,200 MTPA. The new Metalizer is likely to be commissioned by
October 2010. This would further enhance our competitiveness in providing
Metalized PET Films for domestic & export markets.
- The company continues to have signifi cant presence in
international markets as a part of its medium to long term strategy. Our
strategy here is to promote and develop markets for value added niche
products.
- Producers of PET Film in
- Trade barriers in form of Anti Dumping & Anti Subsidy duties on
Indian PET Film manufacturers in Europe, US,
- The companycontinuesinitsendeavortowardsdevelopingnewvalueaddedproducts.Signifi
cant efforts have been made in our Research & Development programs
with new testing equipments and pilot facilities have been added to
facilitate speedy commercialisation of new products. This strategy would
contribute towards better prospects and insulate the company from the
adverse effects of cyclicality.
- Ester continues its
focus on marketing of value added PET Films which insulates Ester from
typical cyclicality of commodity PET Film business.
Overall
the long term prospects of PET Films business are encouraging. Ester will
continue to explore various opportunities, in and outside of
ENGINEERING
PLASTICS BUSINESS
During
financial year 2009-10, their Engineering Plastics compounds and blends
business grew on the back of strong demand growth registered in the electrical,
electronics and automotive sector. In electrical segment, compact fluorescent lamp (CFL)
grew at 25% and the automotive sector also registered a growth above 20%. The
growth rate in automotive and electrical segment is anticipated to be even
higher for 2010 -11. With the Indian government actively promoting the use of
CFL’s as part of its energy efficiency policy, growth in CFL’s is expected to
be more than 30%. The automotive sector is expected to grow around 25% during
financial year 2010 -11. Introduction of new models and design modifications in
the current models will increase the consumption of plastics in cars.
Ester
has successfully expanded its production capacity to 14,400 MT from 4,800
Throughout
the year supply of basic raw material for compound has remained consistent.
Prices also remained steady with some appreciation starting from the end of Q3.
The raw material supply situation tightened during Q4 and we expect it to
remain tight till Q2 2010 -11. Despite price increase and tightening supplies
we managed to do well through our operational excellence programs and
initiating step changes in our efficiency enhancement programs.
Key
drivers for the Indian plastic-compounds market:
- High growth rates for
end-use applications, such as automotive, appliances, electrical &
electronics, wires and cables and the overall growth in the telecom
industry are all expected drive demand for plastic compounds in
- Currently, per capita
usage of plastics is 5.5 kg in
BUSINESS PROSPECTS
Their
endeavor is to selectively target
More
than 90% of all raw materials in the EP business are imported. There is
therefore a lag between raw material prices and the prices of finished goods to
the end customers. Ester is addressing the variability in prices through
several mechanism, such as long term supply contracts, agreements with end
customers on periodic price revisions etc.
Going
forward, they see their focus on flexible manufacturing processes together with
our superior standards on operational excellence and consistent product quality
as key differentiators’ vis-à-vis their
industry peers.
KEY SUCCESS FACTORS
Marketing Initiatives: They continue to witness
positive results from our B2B marketing programs aimed at creating market awareness
for our EP products. Their metrics driven ROI marketing programs through
participation in exhibitions, industry forums, trade shows, R & D
demonstrations for new product development programs demonstrates that our
strategy is correct and is working in the market.
Productivity Improvement: Nearly 80 per cent of costs for
engineering plastics compounds go towards raw materials. Hence, it is important
for them to continuously improve productivity and reduce waste so as to
safeguard margins amid increasing competition. They have initiated several
‘value-chain’ optimization programs to ensure that they keep their eyes on the
ball on productivity improvement initiatives.
Economies of scale: With more than 75 per cent of
the conversion cost (difference between the cost of finished goods and the raw
material costs) being fixed in nature, a larger scale of operations would yield
economies of scale. Their recent expansion plan and future plans has factored
this into their growth strategy which they will continue to exploit in an
optimal manner.
FIXED ASSETS
- Land
(Freehold)
- Buildings
- Plant and
Machinery
- Furniture and
Fixtures
- Lease Hold
Improvements
- Office
Equipments
- Vehicles
Intangible Assets
:
- Softwares
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2010
(Rs. in millions)
|
Sr. No. |
Particular |
Unaudited |
Unaudited |
|
|
|
Quarter
ended 31.12.2010 |
Quarter
ended 31.12.2010 |
|
1. |
Gross
Sales / Income |
|
|
|
|
a. Net Sales / Income from Operations (Net of Excise and Discounts) |
1978.029 |
4554.162 |
|
|
b. Other Operating Income |
5.211 |
7.708 |
|
|
Total
Income (a+b) |
1983.240 |
4561.870 |
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
a) (Increase) / Decrease in Stock in Trade and Work In
Process |
(92.865) |
(50.745) |
|
|
b) Consumption of Raw Materials (Net) |
864.307 |
2099.346 |
|
|
c) Purchase of Traded Goods |
1.585 |
2.368 |
|
|
d) Employee Cost |
81.430 |
192.702 |
|
|
e) Depreciation |
43.090 |
116.898 |
|
|
f) Other Expenditure |
234.006 |
659.939 |
|
|
g)
Total Expenditure (a to f) |
1131.553 |
3020.508 |
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
851.687 |
1541.362 |
|
|
|
|
|
|
4. |
Other Income |
4.199 |
6.361 |
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
855.885 |
1547.723 |
|
|
|
|
|
|
6. |
Interest |
30.016 |
72.056 |
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
825.870 |
1475.667 |
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
825.870 |
1475.667 |
|
|
|
|
|
|
10. |
Tax
Expense |
|
|
|
|
a) Current tax |
235.699 |
405.797 |
|
|
b) Deferred tax |
42.043 |
87.308 |
|
|
Total |
277.742 |
493.105 |
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
548.127 |
982.562 |
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
548.127 |
982.562 |
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
314.469 |
314.469 |
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
8.72 |
15.62 |
|
|
b) Basic and diluted EPS after extraordinary items |
8.72 |
15.62 |
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
-Number of Shares |
20158960 |
20158960 |
|
|
- Percentage of Shareholding |
32.05 |
32.05 |
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
- Number of Shares |
42734746 |
42734746 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100 |
100 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
67.95 |
67.95 |
NOTES :
- Investors Complaints at the beginning of the
quarter was NIL During the quarter, 49 complaints were received and disposed off
accordingly. No complaint was pending for disposal at the end of the
current quarter.
- The Auditors of the Company have carried out
the "Limited Review" of the
a and unaudited results for the quarter ended December 31.2010.
- These unaudited quarterly results were reviewed by the audit
Committee and approved by the Board of Directors at its meetings held on
14th February, 2011
- The Company has successfully commissioned a
new Continuous Polymerization Plant (CP Plant) in the month of November.
2010. With the commissioning of this plant, Polymerization Capacity has
increased from 36000 MT to 107000 MT per annum.
- The Company has successfully commissioned a new Metalizing Plant in the month of
November, 2010. With the commissioning
of this plant, Metalizing Capacity has increased from 6000 MT to 13200 MT
per annum.
- Dulingthe month of January, 201 I, the Company
has successfully commissioned
a new BoPET Film Plant. With the commissioning of this plant,
BoPET film capacity has increased from 27000 to 57,000MT per annum.
- Previous year I Period figures have
been regrouped /
recast wherever necessary to make them comparable.
SEGMENT
WISE REVENUE RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDING DECEMBER 31,
2010
(Rs. in millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Quarter Ended |
|
|
31.12.2010 |
31.12.2010 |
||
|
|
(Un-audited) |
(Un-audited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
a) Polyester Chips and Films |
1794.396 |
3991.311 |
|
|
|
b) Engineering Plastic |
180.435 |
559.445 |
|
|
|
c) Unallocated |
3.198 |
3.406 |
|
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
1978.029 |
4554.162 |
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
a) Polyester Chips and Films |
1129.673 |
1930.164 |
|
|
|
b) Engineering Plastic |
21.458 |
68.399 |
|
|
|
|
|
|
|
|
|
Total |
1151.131 |
1998.563 |
|
|
|
|
|
|
|
|
|
Less :Interest |
30.016 |
72.056 |
|
|
|
Less : Other Unallocable Expenses and Extra Ordinary Items |
307.853 |
468.315 |
|
|
|
Net of Unallocable Income |
12.608 |
17.475 |
|
|
|
Net Profit (+) /
Loss(-) before Tax |
825.870 |
1475.667 |
|
|
|
|
|
|
|
3 |
|
Capital Employed (Segment Assets - Segment Liabilities) |
|
|
|
|
|
|
|
|
|
|
|
a) Polyester Chips and Films |
2716.674 |
2716.674 |
|
|
|
b) Engineering Plastic |
421.060 |
421.060 |
|
|
|
c) Unallocated |
(519.122) |
(519.122) |
|
|
|
|
|
|
|
|
|
Total |
2618.612 |
2618.612 |
AS PER
WEBSITE DETAILS
PROFILE
Subject was incorporated in
To
achieve its commitment to excellence the company lays emphasis on total
customer satisfaction, through continuous improvement in its overall
capabilities and on total employee involvement.
Its
premium quality products are backed by inbuilt statistical and analytical
technique based processes and a strong research and development oriented system.
Continuous upgradation of technology, customer focused marketing and technical
services, are the company's other inherent strengths.
In its
integrated manufacturing facilities subject
produces polyester resins of various types, having different physical and
chemical properties. These resins are also captively used by subject for manufacturing polyester
films and engineering plastics.
Subject produces UMAPet range of Bi-axially Oriented Polyester Films on two state-of-the-art
production lines. UMAPet films have high tensile and dielectric strength, good
chemical and thermal stability and excellent optical and electrical properties
as well as processability at the users' end.
The
entire process of film production, including slitting and packing is performed
in a dust free and clean environment. UMAPet is available in a wide variety
suitable for a number of applications.
PRESS RELEASE
Subject, a
manufacturer of polyester chips, has come out of the Board for Industrial and
Financial Reconstruction's (BIFR) fold.
At a recent
hearing, the bench noted the company's net worth has turned positive as on
March 31, 2004 and the entire accumulated losses have been wiped out.
As per subject
audited balance sheet as on March 31, 2004, the company's accumulated loss was
nil and the net worth stood at Rs.1249.100 millions. While discharging the
company from the purview of the Sick Industrial Companies (Special Provisions)
Act (SICA), the Board directed SUBJECT to complete the necessary formalities
with the Registrar of Companies (RoCs) concerned.
It also directed
that Mr Duli Chand Chhajed, who was appointed as a special director by BIFR on
the board of directors of the company, would be discharged with immediate
effect. BIFR had received an application from SUBJECT in August with a request
for being discharged from the purview of SICA. The company also stated in its
application that the revival scheme sanctioned by BIFR had been substantially
implemented and the net worth had turned positive as on March 31, 2004.
The monitoring
agency, Industrial Development Bank of India (IDBI), in its status report
submitted in September 2004, stated that besides repayment of the entire
one-time settlement dues of financial institutions and banks by the company and
existing promoters, the sanctioned scheme had also been successfully
implemented. IDBI also recommended to the bench to consider de-registration of
the company from the provisions of SICA.
In keeping with
the rehabilitation scheme sanctioned by BIFR, SUBJECT had taken the Foreign
Investment Promotion Board's nod in March for transfer of the 14.04 per cent
stake held by a German financial institution, DEG, to the promoter, Saraswati
Trading Company Ltd (STCL), for 50,000 euros.
STCL is a
Mauritius-based company in which NRI investors hold a majority stake. SUBJECT,
which was originally promoted by Mr Sitaram Singhania along with STCL,
manufactures polyester chips, films and yarn and PET films.
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.48 |
|
|
1 |
Rs.72.36 |
|
Euro |
1 |
Rs.64.42 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.