MIRA
INFORM REPORT
|
Report Date : |
16.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
POLYPLEX CORPORATION LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
18.10.1984 |
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Com. Reg. No.: |
20-11596 |
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Capital Investment/
Paid-up Capital: |
Rs.165.709 millions |
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CIN No.: [Company
Identification No.] |
L25209UR1984PLC011596 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELP08882G |
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PAN No.: [Permanent
Account No.] |
AAACP0278J |
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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 : |
Manufacturing and Selling of Polyester Films, Polyester Chips and
Solar PV Modules. |
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No. of Employees: |
Approximately 1000 |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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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 7200000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for 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
|
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 |
LOCATIONS
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Registered Office/ Factory 1 : |
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Tel. No.: |
91-5943-250136/ 250165/ 166/ 250285/ 286 |
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Fax No.: |
91-5943-250281/ 250069 |
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E-Mail : |
investorrelations@polyplex.com
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Website : |
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Head Office : |
2, Ring Road, Kilokri, Opposite Maharani Bagh, |
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Tel. No.: |
91-11-2463 1761 |
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Fax No.: |
91-11-2462 0729 |
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Corporate Office : |
B-37, Sector I, Noida, District – Gautam Budh Nagar – 201 301, Uttar
Pradesh |
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Tel. No.: |
91-120-2443716 to 19 |
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Fax No.: |
91-120-2443723 / 24 |
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E-Mail : |
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Factory 2 : |
Plot No. 227 MI- |
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Factory 3 : |
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Tel. No.: |
66-38-891352-4 |
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Fax No.: |
66-38-891358 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Sanjiv Saraf |
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Designation : |
Chairman |
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Name : |
Mr. S. G. Subramanyan |
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Designation : |
Vice Chairman |
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Name : |
Mr. Brij Kishore Soni |
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Designation : |
Director |
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Name : |
Air Chief Marshal O. P. Mehra (Retd.) |
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Designation : |
Director |
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Name : |
Mr. Sanjiv Chadha |
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Designation : |
Director |
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Name : |
Dr. Suresh Surana |
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Designation : |
Director |
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Name : |
Mr. Ranjit Singh |
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Designation : |
Whole Time Director |
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Name : |
Mr. Jitender Balakrishan |
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Designation : |
Director |
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Date of Appointment: |
20.07.2010 |
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Name : |
Mr. Ravi Kumar |
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Designation : |
Nominee Director – IDBI Limited |
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Name : |
Mr. Pranay Kothari |
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Designation : |
Executive Director |
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Date of Birth/Age : |
43.Years |
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Qualification : |
B.Com (H), FCA, ACS |
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Date of Appointment : |
01.08.1985 |
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Other Directorships : |
Optima Consultants Private Limited – Consultant |
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Name : |
Mr. Ranjit Singh |
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Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. A K Gurnani |
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Designation : |
Company Secretary |
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Name : |
Mr. Manish Gupta |
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Designation : |
Group Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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1,802,202 |
5.63 |
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46,198 |
0.14 |
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46,198 |
0.14 |
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1,848,400 |
5.78 |
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13,158,134 |
41.14 |
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4,000 |
0.01 |
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4,000 |
0.01 |
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13,162,134 |
41.15 |
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Total shareholding of Promoter and Promoter Group (A) |
15,010,534 |
46.93 |
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(B) Public Shareholding |
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1,452,331 |
4.54 |
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10,250 |
0.03 |
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1,714,730 |
5.36 |
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3,177,311 |
9.93 |
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2,768,542 |
8.66 |
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5,509,296 |
17.22 |
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1,721,523 |
5.38 |
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3,797,394 |
11.87 |
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3,441,319 |
10.76 |
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2,400 |
0.01 |
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2,250 |
0.01 |
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3,584 |
0.01 |
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347,841 |
1.09 |
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13,796,755 |
43.14 |
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Total Public shareholding (B) |
16,974,066 |
53.07 |
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Total (A)+(B) |
31,984,600 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
31,984,600 |
100.00 |
(1) Indian
Bodies Corporate
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Polyester Films, Polyester Chips and
Solar PV Modules. |
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Products : |
Generic Names of the Principal Products of the Company (as per
monetary terms) are as under:
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PRODUCTION STATUS
(As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Plastic Film |
MT |
88900 |
-- |
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Polyester Chips |
MT |
77600 |
-- |
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Plastic Film |
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Net Production** |
MT |
-- |
24238*** |
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Packed Production**** |
MT |
-- |
25446 |
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Polyester Chips |
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Polyester Chips**** |
MT |
-- |
18691 |
* As certified by management
** Includes 1,453 MT (Previous Year – 1,083 MT) of production on Job
work
*** Captive consumption 2,474 MT (Previous Year – 1,740 MT)
**** Includes 398 MT (Previous Year – 42 MT) purchased and reprocessed,
excludes 524 MT (Previous Year – Nil) of purchased film, 1,003 MT of Jobwork
production during the year.
***** Captive consumption of 15,691 MT (Previous Year – 17,425 MT)
includes 72 MT of Job work.
GENERAL INFORMATION
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No. of Employees : |
Approximately 1000 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Lodha and Company Chartered Accountants |
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Address : |
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Group Companies : |
· Polyplex
Corporation Limited (Polyplex Year of Incorporation : 1984 Nature of Business : Manufacturing of PET Film · Polyplex
( Year of Incorporation : 2004 Nature of Business : Investment Company · Polyplex
( Year of Incorporation : 2002 Nature of Business : Manufacturing of PET Film Tel. No.: +66-2-6652706-8 Fax No.: +66-2-6652705 · Polyplex
Year of Incorporation : 2004 Nature of Business : Investment Company · Polyplex Europe Polyester Film Sanayi Ve Ticaret Anonim Siketi (Polyplex Europe) Year of Incorporation : 2004 Nature of Business : Manufacturing of PET Film Tel.: +90-282-6911241,44 Fax No.: +90-282-6911052 · Polylex
( Year of Incorporation : 1995 Nature of Business : Sales and Distribution Company Tel. No.: +1-972-247-3836,47,58 Fax No.: +1-972-243-1039 |
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Associates/Subsidiaries : |
As on 31.03.2009 Associates
v Polyplex Infotech Private Limited v Manuputra Information Solutions Private Limited v v Beehive Systems Limited v Sanjiv Sarita Investments Private Limited v Altivolus Infotech Private Limited
Subsidiaries
v Excel International Limited v Global Solar
Energy ( v Polyplex ( v Polyplex ( v Plolyplex ( v Polyplex Europe
Polyester Film Sanayi Ve Ticaret Anonim Sirketi, v Polyplex ( |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 millions |
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|
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Issued and Subscribed:
|
No. of Shares |
Type |
Value |
Amount |
|
17188000 |
Equity Shares |
Rs.10/- each |
Rs.171.880 millions |
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Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15992300 |
Equity Shares |
Rs.10/- each |
Rs.159.923 millions |
|
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Add : Share Forfeiture Account |
|
Rs.5.786 millions |
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Total |
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Rs.165.709
millions |
OUT OF
ABOVE:
1350000 Equity Shares have been issued during the year
2007-08 on preferential basis.
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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|
|
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1] Share Capital |
165.709 |
165.709 |
165.709 |
|
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2] Equity Share Warrants |
0.000 |
25.080 |
25.080 |
|
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3] Reserves and Surplus |
1623.708 |
1147.054 |
1111.079 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1789.417 |
1337.843 |
1301.868 |
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LOAN FUNDS |
|
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1] Secured Loans |
4480.895 |
2014.204 |
797.975 |
|
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2] Unsecured Loans |
93.909 |
104.576 |
0.000 |
|
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TOTAL BORROWING |
4574.804 |
2118.780 |
797.975 |
|
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DEFERRED TAX LIABILITIES |
295.079 |
152.714 |
141.076 |
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|
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|
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TOTAL |
6659.300 |
3609.337 |
2240.919 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
5796.644 |
1140.560 |
1063.291 |
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Capital work-in-progress |
195.131 |
2073.552 |
267.529 |
|
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INVESTMENT |
200.585 |
224.018 |
371.277 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Foreign currency monetary item translation difference account |
1.811 |
25.299 |
0.000 |
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
601.324 |
255.993 |
222.640 |
|
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Sundry Debtors |
220.339 |
144.746 |
263.038 |
|
|
Cash & Bank Balances |
104.456 |
69.882 |
104.435 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
639.575 |
387.601 |
307.327 |
|
Total
Current Assets |
1565.694 |
858.222 |
897.440 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
405.461 |
163.644 |
101.688 |
|
|
Other Current Liabilities |
233.166 |
243.167 |
37.221 |
|
|
Provisions |
461.938 |
305.503 |
219.709 |
|
Total
Current Liabilities |
1100.565 |
712.314 |
358.618 |
|
|
Net Current Assets |
465.129 |
145.908 |
538.822 |
|
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|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
6659.300 |
3609.337 |
2240.919 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2415.522 |
2292.407 |
1909.919 |
|
|
|
Other Income |
786.994 |
123.459 |
163.862 |
|
|
|
TOTAL (A) |
3202.516 |
2415.866 |
2073.781 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
1919.813 |
1492.550 |
1381.213 |
|
|
|
Operating and other Expenses |
446.957 |
517.706 |
341.236 |
|
|
|
Stock Accretion / Decretion |
[125.013] |
[15.182] |
18.160 |
|
|
|
Exceptional Items |
[0.403] |
1995.074 |
15.187 |
|
|
|
TOTAL (B) |
2241.354 |
1995.074 |
1755.796 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
961.161 |
420.792 |
317.985 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
84.894 |
65.063 |
69.895 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
876.268 |
355.729 |
248.090 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
103.669 |
84.538 |
82.142 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
772.599 |
271.191 |
165.948 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
172.835 |
99.938 |
42.295 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
599.764 |
171.253 |
123.653 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
572.088 |
549.006 |
550.114 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
61.000 |
17.200 |
12.500 |
|
|
|
Proposed Dividend |
127.938 |
111.946 |
95.954 |
|
|
|
Corporate Dividend Tax |
21.249 |
19.025 |
16.307 |
|
|
BALANCE CARRIED
TO THE B/S |
961.665 |
572.088 |
549.006 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
561.440 |
561.789 |
373.868 |
|
|
TOTAL EARNINGS |
561.440 |
561.789 |
373.868 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
561.868 |
230.777 |
146.666 |
|
|
|
Stores & Spares |
22.338 |
26.896 |
21.420 |
|
|
|
Capital Goods |
3064.094 |
816.600 |
11.118 |
|
|
|
Finished Goods |
85.091 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
3733.391 |
1074.273 |
179.204 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
37.50 |
10.71 |
8.13 |
|
|
|
Diluted |
37.18 |
9.71 |
7.78 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
30.06.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
|
Net Sales |
1630.500 |
2573.900 |
3095.100 |
2151.800 |
2617.200 |
|
Total Expenditure |
1399.900 |
1698.300 |
1775.800 |
1802.100 |
2169.400 |
|
PBIDT (Excl OI) |
230.600 |
875.600 |
1319.300 |
349.700 |
447.800 |
|
Other Income |
211.500 |
39.800 |
123.700 |
33.900 |
16.700 |
|
Operating Profit |
442.100 |
915.400 |
1443.000 |
383.600 |
464.500 |
|
Interest |
83.0000 |
88.000 |
109.100 |
69.900 |
66.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
359.100 |
827.400 |
1333.900 |
313.700 |
397.900 |
|
Depreciation |
79.200 |
80.900 |
80.800 |
81.200 |
82.100 |
|
Profit Before Tax |
279.9000 |
746.500 |
1253.100 |
232.500 |
315.800 |
|
Tax |
94.500 |
248.100 |
350.600 |
53.500 |
19.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
185.400 |
498.400 |
902.500 |
179.000 |
296.700 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
185.400 |
498.400 |
902.500 |
179.000 |
296.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
18.73 |
7.09 |
5.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
31.98 |
11.83 |
8.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.49 |
13.57 |
8.46 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.43 |
0.20 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.17 |
2.12 |
0.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42 |
1.20 |
2.50 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Promoted by Sanjiv Saraf in association with Mahalaxi
Trading and Investment Company -- a non-resident corporate body -- Polyplex
Corporation currently operates a polyester film plant (cap. : 6000 tpa) at
Khatima, Nainital district, UP. The plant was commissioned in 1988 with a
capital outlay of about Rs.400 millions. The company's product is
biaxially-oriented polyester film, a thermoplastic film used in a range of
products including audio, video, computer tapes, flexible packaging, metallised
yarn, stamping foils, graphic arts, X-rays, electrical insulations, sun-control
films, capacitors and other applications. With good prospects for the polyester
film industry, the company expanded its capacity 14,830 tpa at a cost of around
Rs.700 millions. The capacity expansion was funded by a private placement of
shares (in Nov.'94 it made a private placement of shares at a premium of
Rs.130) and internal accruals. Polyplex has imported equipment from leading
international suppliers such as Lindauer Dorner, Barmag and Kampf, Germany;
Nishimura, Japan; Nucleometre FAG, France; and Extrusion of Dies, US. This,
coupled with the technical skills of its operating personnel and emphasis on
quality control, has enabled it to produce films which enjoy a premium position
not only in
Year in Retrospect
During the year, consolidated revenues were higher by about 9% which
indicates the gradual return to normalcy from the economic crisis of the
previous year.
While the Company was able to utilise its assets better through higher
production / sales volumes, lower margins arising primarily out of
uncompensated raw material increase and decline in selling prices resulted in a
11% fall in net profits (before minority interest).
The Company’s new
Company’s subsidiary in
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
In this document, the terms ‘Company’ and ‘Polyplex’ refer to the
consolidated operations of Polyplex Corporation Limited Polyplex’s business is
focused on producing high performance plastic films (plain and metallized)
which are mainly used in the flexible packaging industry. Polyplex is one of
the leading integrated producers of Polyester (PET) films in the world. During
the year, it has commissioned a Polyester (PET) films line, a Biaxially
Oriented Polypropylene (BOPP) film line in
Coating and Extrusion Coating.
PET film is made from Polyester resin (chips), which in turn is produced
from Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG). The
Company produces its own resin. The Company largely produces films for
application in Packaging, Electrical and other Industrial segments like hot
stamping foils, thermal lamination, release films, air conditioning ducts etc.
The Company produces only thin films, which account for three-quarters of the
total global demand for PET Films, and does not participate in some of the
other smaller segments like imaging, magnetic media and optical films.
Packaging being the focus business segment, the Company would now be in
a position to offer other substrates used in the flexible packaging industry.
BOPP and CPP films are Polypropylene (PP) based films, which are pre-dominantly
used in packaging besides certain industrial applications like tapes, labels,
thermal lamination and textiles. Flexible packaging companies supply their
laminates to consumer product companies for packaging of a diverse range of
products like food products, household goods, personal care products, etc. The
downstream businesses of Silicone Coating and Extrusion Coating are niche
businesses producing release films and thermal laminates respectively.
GLOBALOPERATIONS
Polyplex has attained a leadership position in the PET films business
with manufacturing facilities in
Polyplex Corporation Limited (PCL/ Polyplex India) has a majority
ownership of 70% in Polyplex (Thailand) Plc (PTL/ Polyplex Thailand) which in
turn holds 100% of Polyplex Europa Polyester Film Sanayi VeTicaretAnonim
Sirketi (PE/ Polyplex Europa) and Polyplex Trading (Shenzen) Company Limited
(PTSL/Polyplex China) The Company also has a 66% controlling stake in Polyplex
(Americas) Inc. (PA/ PolyplexAmericas).
PET FILM BUSINESS
The growth in flexible packaging has over the years shifted the
production and usage patterns of PET films. The Company’s relevant segments of
Packaging, Industrial and Electrical constitute 95% of the total demand in 2009
and the traditional high-end technology segments like Imaging and Magnetic
media have been reduced to only 5% due to developments in digital technology.
Polyplex produces only thin films, which account for three-quarters of the
total global demand for PET Films.
Better packaging not only improves the shelf life of the products but is
also essential for improving product appeal in a highly competitive consumer
goods industry. Flexible packaging reduces the cost of packaging and plays a
key role in source reduction on the principle of ‘use less waste in the first
place’ in comparison with conventional packaging.
This has resulted in shift from rigid forms of packaging to flexible packaging
which has ensured higher-than-GDP rates of growth in the flexible packaging
industry across the globe. PET film, being a higher-end substrate within
packaging, has been among the faster growing substrates. An increase in the
purchasing power in the developing countries has brought with it a large rise
in the per capita consumption of packaging material. As a result, Asia
(excluding
Demand for packaging is also quite resilient as it relates to
consumption of food products, household goods and personal care products etc.,
which are to a large extent non-discretionary in nature insulating the industry
from the global economic recessionary environment. While growth rates in
packaging have slowed down, some of the other segments like industrial have
witnessed contraction in demand in 2008/2009 as a consequence of the economic
crisis in 2008. Electrical/ electronic segment of end-use has maintained its
pace of growth due to the demand from flat panel display screens used in LCDs
and electronic displays. Films used for solar applications like PV products
have also shown buoyancy in demand in the recent past.
Similar to the shift in demand, on the supply-side as well, most of the
new capacities are being added in low-cost developing countries, primarily in
The financial year 2009-10 has been a year of recovery whereby volumes,
especially in the packaging segment, have returned to normal levels. Demand in
industrial segment continues to be mirror the global dynamics with a much
slower recovery and more susceptibility to similar shocks like the recent
events in the southern European region. The end of the year saw an improvement
in sentiment with perceptible improvement in margins for the industry and this
trend has accelerated in the first quarter of the current year heralding an
improvement in industry
performance. This is a cumulative effect of the following factors:
a. Over the past few years (excluding 2009) while demand has continued
to grow there has been inadequate matching capacity addition (excluding
b. Revival of demand post the economic crisis.
c. Diversion of capacity by several large producers from packaging to
industrial segment by conversion of thin film lines into intermediate and thick
films.
d. Closure of some old lines.
The global demand supply balances mask significant differences within
regions, which are getting more pronounced in recent years. Out of the total
new capacity added in the last 5 years, 56% has been added in
They expect PET film growth rates to be higher than the global economic
growth rates. Some of the capacities already added / being added across the
globe during 2009-2011 had been planned assuming a continuation of the higher
pre-recessionary growth rates. While, initially, it appeared that this could
depress the operating rates of the PET film lines for several quarters after
the commencement of these new capacities, the improvement in market sentiment
and margins since the beginning of 2010 has resulted in higher operating rates.
However, owing to the increasingly regional nature of the business, the
demand-supply situation would vary across regions and some regions like
THE BOPP AND CPP
BUSINESSES
The BOPP and CPP businesses are also witnessing similar dynamics. Growth
in Asia especially
SILICONECOATINGANDEXTRUSIONCOATING
BUSINESSES
The Silicone coating business produces polyester release liner, which is
used for carrying adhesive labels until such adhesive labels are removed from
the release liner and are applied to the final surface. Other applications of
siliconised polyester release liner include release liner for adhesive tapes,
cast polymer materials, electronic applications, roofing and other industrial
uses. At present the Company has one coater at its plant in
The Extrusion coating business involves the combination of PET film with
an extruded adhesive layer to produce a
thermal lamination film. Thermal lamination film is used for the application of
plastic film to the surface of another item like paper in order to improve the
durability and give it an aesthetic appeal. The main uses of this are in
teaching aids, maps, certificates, posters, menu cards, book covers, carton
board boxes and food packaging. The Company has one extrusion coater located in
INDUSTRY IN
The thin PET film market in
The BOPP market in
Due to the high attractiveness of the domestic market and the general
export competitiveness of the local industry for both PET and BOPP films, a
significant capacity addition has taken place towards the second half of
2009-10. While this was expected to impact margins for some time, a sharp
improvement in market sentiment, both globally and in
STRATEGY
Polyplex seeks to maximize long-term returns to the shareholders by
following a differentiated approach and proactively responding to anticipated
changes in the business and environment. The key elements of this strategy have
been:
• Manufacturing or distribution presence in the key regional markets for
an efficient delivery model.
• Integrated manufacturing facilities with high productivity assets to
ensure cost competitiveness.
• Increasing the proportion of speciality product revenues.
• Accelerate investment in niche downstream products and related films
to exploit synergies in operations, broad base product portfolio and provide a
platform for further growth. Setting up of the extrusion coating project, the
CPP line and Silicone Coating line in
• Strong global delivery capabilities with near-shoring and efficient
onward distribution network. Acquisition of the distribution company in the
• Setting up of the Trading Company in
• Increased emphasis on upgrading technical service and R and D
capabilities.
• Consolidate market position in key geographic locations before the
next phase of growth.
• Continuous improvements in all aspects of the operations.
SALES and
OPERATIONS
The Company has a large international presence with active sales in 87
countries across the world. The Company
has a large base of about 1,350 end customers and low customer
concentration. Its top 10 customers contributed
29% of total revenues in 2009-10. 87% of the Company’s revenues were
from PET films in 2009-10. Of the total
sales, 60% are sold directly to the end-users.
FUTURE OUTLOOK and
PLANNED INVESTMENTS
The recovery in the global economy is reflected in the improved
sentiments in the PET film industry since early 2010. Given the additional
demand, supplies are expected to be tight during the current year. Besides
recovery in overall demand, closure of some older capacities in EU/USAas also
shift of focus of some of larger producers to newer and higher priced optical
and solar applications, has resulted in the current market dynamics. The
Company is also facing an upsurge of orders and with increasing downstream
demand from metallized / coated films, it has decided to invest in a third base
film line in Turkey and also seriously evaluate additional capacity enhancement
in PET films in Thailand.
The Company remains confident that with its strengths and superior
performance it should be able to grow profitably and withstand variability in
industry environment. The Company is well poised to capture growth
opportunities in all its business segments within the confines of business
prudence.
CONTINGENT
LIABILITIES NOT PROVIDED FOR, IN RESPECT OF:
a) Disputed matters under litigation:
(Rs. in Millions)
|
Particulars |
Current
Year |
Previous
year |
|
Sales Tax and Entry Tax |
28.390 |
28.374 |
|
Excise Duty and Customs Duty |
2.295 |
2.295 |
|
Income Tax |
7.354 |
7.354 |
|
Others |
4.121 |
1.495 |
b) Bills discounted with banks – Rs.1.936 Millions (Previous Year –
Nil).
c) (i) Custom duty saved amounting to Rs.642.939 Millions (Previous Year
– Rs.162.782 Millions) in respect of import of machinery under Export Promotion
Capital Goods (EPCG) Scheme against which export obligation is pending to be
fulfilled.
(ii) Import duty saved amounting to Rs.9.768 Millions (Previous Year –
Rs. Nil) in respect of goods imported under advance license against which
export obligation is pending to be fulfilled.
FIXED ASSETS:
- Buildings
- Plant and
Machinery
- Electrical
Installation
- Vehicles
- Office
Equipments
- Furniture and
Fixtures
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/ NINE MONTHS ENDED JUNE, 30, 2011
(Rs.
in millions)
|
Particulars |
Year
Ended |
Year
Ended |
|
30.06.2011 |
31.03.2011 |
|
|
Audited |
Audited |
|
|
1. (a)Net sales/ Income from Operations |
2616.200 |
9435.100 |
|
(b) Other operating income |
1.000 |
16.200 |
|
Total |
2617.200 |
9451.300 |
|
Expenditure |
|
|
|
a) (Increase)/decrease in stock in trade |
174.000 |
[430.600] |
|
b) Consumption of raw materials |
1477.900 |
4677.100 |
|
c) Cost of Traded Goods |
2.600 |
90.800 |
|
d) Power and Fuel |
159.000 |
796.100 |
|
e) Staff cost |
95.600 |
470.000 |
|
f) Depreciation |
82.100 |
322.100 |
|
g) Other expenditure |
260.300 |
1072.700 |
|
Total |
2251.500 |
6998.200 |
|
3. Profit from operations before other income, interest and
Exceptional items (1-2) |
365.700 |
2453.100 |
|
4. Other income |
16.700 |
408.900 |
|
5. Profit before interest and Exceptional items |
382.400 |
2862.000 |
|
6. Interest (Net) |
66.600 |
350.000 |
|
7. Profit after interest but before Exceptional items |
315.800 |
2512.000 |
|
8. Exceptional items |
0.000 |
0.000 |
|
9. Profit/ (Loss) from Ordinary Activities before Tax |
315.800 |
2512.000 |
|
10. Tax Expenses |
19.100 |
746.700 |
|
11. Profit/ (Loss) from Ordinary Activities after Tax (9-10) |
296.700 |
1765.300 |
|
12. Extraordinary Item (Net of Tax expense) |
0.000 |
0.000 |
|
13. Net profit/ (loss) for the period (11-12) |
296.700 |
1765.300 |
|
14. Less: Minority Interest |
0.000 |
0.000 |
|
15. Profit after Tax and Minority Interest (13-14) |
296.700 |
1765.300 |
|
16. Paid up equity share capital (Face value of Rs.10 each) |
319.800 |
319.800 |
|
17. Reserves excluding revaluation reserves |
0.000 |
2857.000 |
|
18. Earnings Per Share (EPS) before and after Extraordinary Items (In
Rs.) (Not Annualized) |
|
|
|
a) Basic |
9.28 |
55.19 |
|
b) Diluted |
9.28 |
55.19 |
|
19. Aggregate of Public shareholding |
|
|
|
- Number of shares |
16974066 |
16974066 |
|
- Percentage of shareholding |
53.07% |
53.07% |
|
20. Promoter and
Promoter Group Shareholding |
|
|
|
a) Pledged /
Encumbered |
|
|
|
- Number of
Shares |
Nil |
Nil |
|
- Percentage of
Shares (as a % of total shareholding of promoter and promoter group) |
Nil |
Nil |
|
- Percentage of
Shares (as a o/o of total share capital of the Company) |
Nil |
Nil |
|
b)
Non-Encumbered |
|
|
|
- Number of
Shares |
1501053.400 |
15010534 |
|
- Percentage of
Shares (as a % of total shareholding of promoter and promoter group) |
100.00% |
100.00% |
|
- Percentage of
Shares (as a o/o of total share capital of the Company) |
46.93% |
46.93% |
Notes: -
Standalone Results
1) Figures have been regrouped wherever necessary.
2) The Company does not have more than one reportable segment.
Accordingly, pursuant to Accounting Standard (AS – 17) on “Segment Reporting”,
segmental information is not required to be provided.
3) Current Year figures are not comparable with Previous Year due to
startup of operations at Bazpur plant during the quarter ended March, 2010.
4) Exchange (gain) / loss on derivatives relating to acquisition of
depreciable fixed assets is treated as carrying cost of assets.
5) `Other Income' for the year ended June 2011 includes Rs. 0.900
Million (Previous Year Rs. 203.900 Millions) on account of dividend received
from subsidiaries.
6) The Company has issued and allotted 1,59,92,300 equity shares of
Rs.10/- each on December 28, 2010 as Bonus Shares by capitalizing Securities
Premium Account. Consequently, the comparative EPS figures in all the periods
above have been recalculated after giving effect of issue of Bonus shares, as
required by Accounting Standard (AS - 20).
7) One additional Metallizer along with Slitter has been commissioned at
Bazpur in the first week of July 2011. Conversion of the first PET Film Line
into Specialties/ Thick at Khatima is under implementation.
8) Details of no. of investor complaints for the quarter ended June 30,
2011 Beginning Nil, Received 5, Disposed of 4 and Pending 1 (Since resolved).
9) These results were reviewed by the Audit Committee and have been
approved by the Board in its meeting held on August 8 2011
10) The Limited review under clause 41 of Listing Agreement has been
completed the Auditors.
WEBSITE DETAILS:
History
Polyplex was incorporated in 1984 and commenced commercial operations with its
first Film line of 4000 TPA (Ton Per Annum) in May 1988, which was subsequently
increased to 6000 TPA. With its operations stabilizing, by the mid 90’s, Polyplex
was able to emerge as one of the most profitable producers of Polyester Film in
Polyplex undertook an expansion in film capacity by adding another film line of
9000 TPA in March 1996, which was subsequently increased to 14000 TPA. It also
integrated backward into the manufacture of Polyester Chips meant for captive
consumption, and commenced production in March 1997.
While mirroring industry trends, the Company’s financial performance has been
among the best in the industry resulting from the Company’s focus on Polyester
Films, its strategic understanding of the PET Film market and operational
efficiencies. Initiatives such as TPM (Total Productive Maintenance), BPR
(Business Process Reengineering) and implementation of ERP (Enterprise Resource
Planning) have lead to sustained improvements in productivity. A turnaround in
market conditions since mid-2000 has seen a significant improvement in the
profitability of their operations, thus creating conditions for further growth.
The Company also commissioned a Metalliser in
Following from the Company’s strategic objective of being a PET Film
manufacturer of Global significance and “Near shoring” to main
markets/customers, Polyplex expanded its film capacity further by investing in
a new film line of 15000 MT (Metric Ton) in Thailand through its subsidiary
Polyplex (Thailand) Public Company Limited (PTL/ Polyplex Thailand) to cater to
the high growth markets of SEA. The new line was commissioned in April 2003
within the budgeted costs and ahead of time. Following this, Polyplex
Production in both the
During 2004-05 PTL successfully commissioned two chips plants - a batch process
plant with a capacity of 7000 TPA in September 2004 and a continuous process
plant with a capacity of 45500 TPA in February 2005. With this, Polyplex
To further the twin strategic objective of “Global Player” and “Near shoring”
in European and Mediterranean markets the Company took steps to implement a
Polyester film plant in
Production in Polyplex Europa (PE) has been more than rated capacity. Consequently,
capacity of previous PET Film line has been restated at 29000 MT. Further, a
new Pet Film line has been commissioned in May 2008, having production capacity
of 29,000 TPA. This line is state of the art line and is capable of producing
various speciality products. Now, the total production capacity at
The capacity of Chips plant has also been increased by de-bottlenecking to
57,600 TPA to match the film capacity. However, only Bright chips are made at
Demand of PET film in
To broaden its product portfolio and capture larger part of the value chain, in
March 2007, Company set up an offline Silicone Coater Plant (160 Mn sqm) for
siliconising PET films in India. They have established their presence in the
Shingles market in
To impart greater focus on value added products, the company’s subsidiary in
Thialand, PTL, has installed an Extrusion coating line with an annual capacity
of 7800 TPA (150 Mn sqm) at an investment of USD 8 Million and the project has
started commercial production from April, 2008.
These investments have strengthened the Company’s competitive position
in the PET Film business ensuring continued cost leadership. This together with
the current demand-supply situation would enable Polyplex to provide an
attractive value proposition to its customers and investors.
The Company is going ahead with its plans of expansion and setting up a new
state of the art 8.70 meter wide PET Film line (31,000 TPA) using direct melt
together with a continuous process chips plant (57,600 TPA) and a Metallizer
(7,000 TPA) at Bajpur, near its existing facilities, in Uttarakhand in India.
The project has been enlarged to include a 8.7 meter wide BOPP line along with
a 2.85 meter wide Metallizer. The project is expected to start commercial
production by mid 2009 with an investment of around USD 112 million. The
project would enjoy excise and income tax benefits for a period of 10 years.
These plants would cater to the converters/customers in Uttarakhand.
Further, as a measure of improving its product offering to its customers, the
Company’s subsidiary in
Introduction
Polyplex is the world’s 4th largest manufacturer of thin polyester Film. With
it’s headquarter located in Nodia, in the State of Uttar Pardesh, India. The
Company has three manufacturing facility – one located at Khatima, Distt. Udham
Singh Nagar in the state of
Polyplex has established itself as one of the most
profitable producers of PET Film by way of cost efficient operations resulting
from high productivity and low overheads. Its products have gained wide
acceptance in the global markets, such as
The Company has a dynamic workforce of more than 347 employees in
With its planned expansion in
Milestones
1984 Polyplex
Corporation Limited is incorporated.
1987 Became
a listed company in
1988 Commences
commercial operations with its first Film line of 4000 TPA.
1996 Polyplex
undertakes expansion in Film capacity by adding a new Film line of 9000 TPA.
1997 Commences
integrated backward manufacturing of Polyester Chips meant for captive
consumption.
2002 Polyplex
commissions a Metalliser in
2003 Polyplex
(
2004 PTL’s
Batch Polycondensation PET chips plant commences in September.
2004 PTL
successfully floated an IPO and is listed on Stock Exchange of Thailand.
2005 PTL’s
Continuous Process PET chips plant commences in February.
2005 PTL
commissions a Metallizer in
2005 PE
commences operations in
2006 PE
commissions a Metallizer in
2006 PTL
invested USD 1 Mn in Polyplex
2006 PCL
sets up an offline Silicone Coating Plant .
2008 PTL
commences a Metallizer in
2008 PTL
commences an Extrusion Coating line with a capacity of 150 million square meter
in April.
2008 PE
commences a PET Film with a capacity of 29000 TPA in May.
2008 PE
commences a Metallizer with a capacity of 6000 TPA in May.
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.45.37 |
|
|
1 |
Rs.73.53 |
|
Euro |
1 |
Rs.64.37 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
66 |
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.