MIRA
INFORM REPORT
|
Report Date : |
07.01.2011 |
NOTE :
The Given Address could not be confirmed
IDENTIFICATION DETAILS
|
Name : |
NOVOPAN INDUSTRIES LIMITED GVK AVIATION PRIVATE LIMITED MERGED WITH NOVOPAN INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
IDA, Phase – II, Patancheru - 502319, Andhra Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
31.08.1984 |
|
|
|
|
Com. Reg. No.: |
01-004941 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L55101AP1984PLC004941 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDN00113B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACN7008A |
|
|
|
|
Legal Form : |
A closely held Public Limited Liability Company. The Company's Shares are Listed on the
Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Pre – Laminated Particle Board and Resin. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 1681600 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of GVK Group. It is an established company having
moderate track. There appears to be some losses being incurred by the
company. Trade relations are reported as fair. Business is active. Payments
are reported to be slow. The company can be considered for business dealings with some caution.
|
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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. K V Prasad |
|
Designation : |
General Manager |
|
Contact No.: |
91-8455-242624 |
|
Date : |
07.01.2011 |
LOCATIONS
|
Registered Office : |
IDA, Phase – II, Patancheru - 502319, |
|
Tel. No.: |
91-8455-242624 / 242625 / 242626 / 241772 |
|
Fax No.: |
91-8455-241883 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Regional Office 1 : |
Chona Cente, 2nd Floor, S – 3, |
|
Tel. No.: |
91-40-28278769 |
|
Fax No.: |
91-44-28257129 |
|
E-Mail : |
|
|
|
|
|
Regional Office 2: |
504, |
|
Tel. No.: |
91-11-25811152 / 25811153 / 25811154 |
|
E-Mail : |
|
|
|
|
|
Manufacturing Unit 1 : |
IDA, Phase – II, Patancheru – 502319 |
|
Tel No.: |
91-08455-242624 / 242625 / 242626 |
|
Fax No.: |
91-08455-241883 |
|
E-Mail : |
|
|
|
|
|
Manufacturing Unit 2 : |
Sy. Nos. 23,26 27/a and 22 ee, |
|
Tel No: |
91-08548-244433 / 244455 |
|
Fax No.: |
91-08548-244432 |
|
E-Mail : |
|
|
|
|
|
Branches : |
Located At :
|
DIRECTORS
AS ON 27.11.2010
|
Name : |
Mr. G V Krishna Reddy |
|
Designation : |
Chairman |
|
Address : |
6-3-250 Road No.1, Banjara Hills, |
|
Date of Birth/Age : |
22.03.1937 |
|
Date of Appointment : |
31.08.1984 |
|
|
|
|
Name : |
G Indira Krishna Reddy |
|
Designation : |
Director |
|
Address : |
6-3-250 Road No.1, Banjara Hills, |
|
Date of Birth/Age : |
17.10.1944 |
|
Date of Appointment : |
05.10.2005 |
|
|
|
|
Name : |
Mr. G V Sanjay Reddy |
|
Designation : |
Director |
|
Address : |
6-3-250 Road No.1, Banjara Hills, |
|
Date of Birth/Age : |
18.11.1964 |
|
Date of Appointment : |
01.09.1984 |
|
|
|
|
Name : |
Mr. M P Murti |
|
Designation : |
Director |
|
Address : |
Tripura Nilaam, 8-2-248/1/7/20 Nagar Juna Hills, Panjagutta, |
|
Date of Birth/Age : |
01.12.1919 |
|
Date of Appointment : |
25.05.1986 |
|
|
|
|
Name : |
Mr. R Surendra Reddy |
|
Designation : |
Director |
|
Address : |
Priyam Plot No.947, Road No.47, Jubille Hills, |
|
Date of Birth/Age : |
10.10.1930 |
|
Date of Appointment : |
01.09.1984 |
|
|
|
|
Name : |
Mr. A Issac George |
|
Designation : |
Director |
|
Address : |
36/1 Czech Colony, Sanathnagar, |
|
Date of Birth/Age : |
19.04.1954 |
|
Date of Appointment : |
25.06.2002 |
|
|
|
|
Name : |
Mr. Y Rama Murty |
|
Designation : |
Director |
|
Address : |
8-2-416 Stone Valley, Block C-3 Road #4, Banjara Hills, Hyderabad –
500034, Andhra Pradesh |
|
Date of Birth/Age : |
24.06.1960 |
|
Date of Appointment : |
09.06.2004 |
KEY EXECUTIVES
|
Name : |
Mr. Ashish Kulkarni |
|
Designation : |
Secretary |
|
Address : |
6-3-287 Road #4, SRI Sai Nagar Colony Nagole, |
|
Date of Birth/Age : |
25.04.1983 |
|
Date of Appointment : |
30.07.2009 |
|
|
|
|
Name : |
Mr. S.P. Bhasin |
|
Designation : |
Director (Operations) |
|
|
|
|
Name : |
Mr. K V Prasada Rao |
|
Designation : |
General Manager (Finance) |
|
|
|
|
Name : |
Mr. S K Mishra |
|
Designation : |
General Manager (Pers. and Admn.) |
|
|
|
|
Name : |
Mr. P Sampath |
|
Designation : |
Sr. Manager (Production) |
|
|
|
|
Name : |
Mr. Papi Reddy |
|
Designation : |
Sr. Manager (Maintenance) |
|
|
|
|
Name : |
Mr. Ravi Sardespande |
|
Designation : |
Sales Manager |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Technical Advisors |
|
|
|
|
Name : |
Dr. P Krishnam Raju |
|
Designation : |
Technical Advisors |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
|
|
Shareholding
of Promoter Group |
|
|
|
|
|
|
Indian
|
|
|
Individuals
/Hindu Undivided Family
|
3822256
|
32.09
|
|
Bodies Corporate |
5085199 |
42.70 |
|
Sub Total |
8907455 |
74.79 |
|
|
|
|
|
Foreign |
|
|
|
|
|
|
|
Total
Shareholding Of Promoter And Promoter Group |
|
|
|
|
|
|
|
Public
shareholding |
|
|
|
Institutions |
|
|
|
Mutual
Funds / Axis |
137 |
-- |
|
Financial
Institutions/Banks |
422539 |
3.55 |
|
Sub Total |
422676 |
3.55 |
|
|
|
|
|
Non-Institutions |
|
|
|
Bodies
Corporate |
823182 |
6.91 |
|
Individuals
- |
|
|
|
Individual
shareholders holding nominal share capital up to Rs.0.100 million. |
1427553 |
11.99 |
|
Individual
shareholders holding nominal share capital in excess of Rs. 0.100 million. |
284161 |
2.39 |
|
Any
Other (specify) |
44926 |
0.38 |
|
Sub
Total |
2579822 |
21.66 |
|
Total
Public Shareholding |
3002498 |
25.21 |
|
Total |
11909953 |
100.00 |
|
|
|
|
|
Shares
held by Custodians against which Depository Receipts have been issued. |
-- |
-- |
|
|
|
|
|
GRAND TOTAL |
11909953 |
100.00 |
AS ON 27.11.2010
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
0.39 |
|
Bodies corporate |
|
42.70 |
|
Directors or relatives of directors |
|
32.09 |
|
Other top fifty shareholders |
|
4.71 |
|
Govt. Companies |
|
2.16 |
|
Nationalised / Other Banks |
|
3.00 |
|
Others |
|
14.95 |
|
|
Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Pre – Laminated Particle Board and Resin. |
||||
|
|
|
||||
|
Products : |
|
||||
|
|
|
PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
|
|
Installed
Capacity |
|
Particle Boards |
Mtrs. |
|
|
4.850 |
GENERAL INFORMATION
|
No. of Employees : |
Information Declined by the Management |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
NOTE :
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Brahmayya and company Chartered Accountant |
|
Address : |
403 and 404, 4th Floor, Golden Green Apartments, Erramanzil
Colony, Somajiguda, |
|
|
|
|
Group Companies : |
|
# Companies with which there are transactions
during the year.
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs. 10 each |
Rs.200.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11909953 |
Equity Shares |
Rs. 10 each |
Rs.119.099
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
119.099 |
119.099 |
119.099 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
301.307 |
370.463 |
192.871 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
420.406 |
489.562 |
311.970 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
329.276 |
398.188 |
407.530 |
|
|
2] Unsecured Loans |
0.000 |
9.976 |
0.000 |
|
|
TOTAL BORROWING |
329.276 |
408.164 |
407.530 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
26.676 |
|
|
|
|
|
|
|
|
TOTAL |
749.682 |
897.726 |
746.176 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
645.660 |
680.486 |
434.279 |
|
|
Capital work-in-progress |
0.322 |
0.322 |
1.877 |
|
|
|
|
|
|
|
|
INVESTMENT |
1.693 |
1.692 |
1.666 |
|
|
DEFERREX TAX ASSETS |
5.225 |
5.225 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
225.577
|
211.252 |
242.599 |
|
|
Sundry Debtors |
113.343
|
121.389 |
151.185 |
|
|
Cash & Bank Balances |
6.697
|
6.032 |
40.839 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
55.056
|
126.880 |
70.748 |
|
Total
Current Assets |
400.673
|
465.553 |
505.371 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
242.661
|
236.504 |
173.739 |
|
|
Other Current Liabilities |
62.096
|
20.308 |
22.792 |
|
|
Provisions |
0.000
|
0.000 |
2.061 |
|
Total
Current Liabilities |
304.757
|
256.812 |
198.592 |
|
|
Net Current Assets |
95.916
|
208.741 |
306.779 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.866 |
1.260 |
1.575 |
|
|
|
|
|
|
|
|
TOTAL |
749.682 |
897.726 |
746.176 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
677.394 |
715.727 |
775.547 |
|
|
|
Other Income |
12.114 |
73.498 |
69.493 |
|
|
|
TOTAL (A) |
689.508 |
789.225 |
845.040 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Consumed |
341.681 |
416.870 |
380.993 |
|
|
|
Rates and Taxes |
30.627 |
30.881 |
37.207 |
|
|
|
Personnel Costs |
105.273 |
113.292 |
69.716 |
|
|
|
Power and Fuel |
73.347 |
74.360 |
63.039 |
|
|
|
Other Expenses |
119.745 |
183.365 |
137.483 |
|
|
|
(Increase)/ Decrease in stocks |
2.237 |
(5.411) |
(3.709) |
|
|
|
TOTAL (B) |
672.910 |
813.357 |
684.729 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
16.598 |
(24.132) |
160.311 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
51.942 |
61.383 |
37.761 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(35.344) |
(85.515) |
122.550 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
33.811 |
39.074 |
32.186 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(69.155) |
(124.587) |
90.364 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
(14.850) |
35.157 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(69.155) |
(109.738) |
55.207 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
31.414 |
141.152 |
95.944 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
37.742 |
0.000 |
10.000 |
|
|
BALANCE CARRIED
TO THE B/S |
0.000 |
31.414 |
141.151 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.000 |
19.651 |
0.000 |
|
|
TOTAL EARNINGS |
0.000 |
19.651 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
169.349 |
230.676 |
222.239 |
|
|
|
Capital Goods |
0.000 |
12.365 |
16.210 |
|
|
TOTAL IMPORTS |
169.349 |
243.041 |
238.449 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(5.81) |
(9.21) |
-- |
|
QUATERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
|
Net Sales |
158.000 |
178.200 |
|
Total Expenditure |
159.700 |
182.200 |
|
PBIDT (Excl OI) |
(1.700) |
(4.000) |
|
Other Income |
0.100 |
5.300 |
|
Operating Profit |
(1.600) |
1.300 |
|
Interest |
10.600 |
10.600 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
(12.200) |
(9.300) |
|
Depreciation |
8.200 |
6.600 |
|
Profit Before Tax |
(20.400) |
(15.900) |
|
Tax |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
(20.400) |
(15.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(10.02)
|
(13.90) |
6.53 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(10.20)
|
(17.40) |
11.65 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(16.44)
|
(25.44) |
9.61 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.25 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.50
|
1.35 |
1.94 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.31
|
1.81 |
2.54 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS AVAILABLE FOR
(Rs.
In millions)
|
PARTICULARS |
AS ON 31.03.2010 |
AS ON 31.03.2009 |
AS ON 31.03.2008 |
|
Creditors for Trade |
179.293 |
181.024 |
124.089 |
|
Creditors for Expenses |
61.207 |
51.900 |
46.210 |
|
Creditors for Other Finance |
2.161 |
3.578 |
3.438 |
NOTE :
Registered office of the company has been shifted from Suryodaya 1-10-63/3,
Begumpet,
PERFORMANCE :
Net revenue of the company for the year was at Rs.6.895 millions, in comparison with Rs. 7.892 millions. During the year the company’s performance though not turned the corners has improved in comparision to the previous year coupled with the economic situation continuing in the market. The Company also had to face unplanned and unscheduled shutdown of Plants due to Power shortage which has impacted the production.
Moreover, due to political sensitivities which were caused by demand for separate Telngana region also have affected the performance, which have led to higher maintenance cost related to shutdown and operation and also due to under absorbed overheads.
With the various constraints stated above the company managed to reduce the lossses to Rs.0.692 millions as against Rs.1.097 millions during 2008-09. During the current year the company had faced the same constrains and also difficulties in procuring the main raw material wood. The company has taken various steps to counter the above problem and is hopeful that some of the issues relating to availability of power, raw materials etc., would ease out.
MANAGEMENT DISCUSSION
AND ANALYSIS
MACRO ECONOMIC OVERVIEW:
After witnessing a significant slowdown in the fiscal year ended March 31, 2009, the Indian economy bounced back impressively during the last financial year. The inherently strong domestic consumption combined with both the monetary and fiscal stimuli measures undertaken by the Government and other policy authorities over the past year helped the economy shrug off the overhang of week exports and global headwinds. GDP growth is estimated to be around 7.2% for the fiscal year ended March 31, 2010 as against 6.7% for the year ended March 31, 2009.
In terms of the sectoral composition of growth, the industrial sector was the clear driver of this recovery, growing by 10% in the last financial year from 2.8% a year ago. While the revival in industrial growth was led by a pick-up in consumer durables, other industrial sectors such as basic goods, intermediate goods and more importantly capital goods also gathered momentum, collectively pointing to the broad-basing
of industrial recovery.
Service sector growth was dominated by community, social and personal services reflecting increased government expenditure. However, private services such as trade, transport and communication gathered pace and are likely to keep the service sector growth strong through the next financial year. Overall, service sector growth was estimated at 8.5% in the last fiscal year as against 9.7% a year ago.
Inflation over the past year was largely driven by supply side pressures on account of the drought and hence substantially confined to agricultural commodity prices.
There were however emerging signs that inflation is getting more broad-based with private demand playing a role in pushing up prices of manufactured products.
PARTICLE BOARD
INDUSTRY
With the country’s economy getting stabilized, the market situation in Particle Board Industry is also showing upward trend. The overall demand has gone up, but at the same time, new entrants have come up with a capacity of about 900 CBM per day. This has lead to even more competition in the market. Slowly this industry is getting divided into two segments. The upper segment, where OEM’S control the market, and a lower segment, where dealers and distributors play a role.
Branded products like NOVOPAN mostly cater to the upper segment and some reputed dealers. The new entrants mostly focus on the dealer network. The net effect of all this is an overall increase in demand but more in lower segment of market. This domestic increase has brought stagnation to imported particle boards and the volumes remain same as in the previous years. Finally the pre-laminated board market has seen severe competition from all the fronts.
REVIEW OF OPERATIONS
AND FINANCIAL PERFORMANCE
FINANCIAL PERFORMANCE
During the year 2009 - 10, the company has incurred loss of Rs. 0.692 millions, as compared to Rs.1.097 millions
loss of the previous year.
During the year the company’s performance though not turned the corners has improved in comparision to the previous year coupled with the economic situation continuing in the market.
OPERATIONS
Patancheru and Shadnager Plants put together, despatched 2.441 millions sq.mtrs of prelaminated boards of various thicknesses as compared to 3.047 millions sq.mtrs in the previous year.
The Company had to face unplanned and unscheduled shutdown of Plants due to Power shortage which has impacted the production. Moreover, due to political sensitivities which were caused by demand for separate Telngana region also have affected the performance, which have led to higher maintenance cost related to shutdown and operation and also due to under absorbed overheads.
During the current year the company had faced the same constrains and also difficulties in procuring the main raw material wood. The company has taken various steps to counter the above problem and is hopeful that some of the issues relating to availability of power, raw materials etc., would ease out.
OUTLOOK
Although the market scenario for Particle Board Industry is showing positive trends in growth, there has been stiff competition in the market due to increase in production capacity by almost 50% from new entrants. These new entrants are coming up with much higher capacity plants and with more automation, resulting in lower cost of production.
However, the company is trying to face the competition with introduction of value added products like E1 grade and Green Boards developed with in house technology. These products are becoming popular with the awareness in Green Building Applications.
FORM 8
|
Name of the company |
NOVOPAN
INDUSTRIES LIMITED |
|
Presented By |
Neeti Bhachawat , Company Secretary (Name
and Designation of the Official of the company) |
|
1) Date and description of instrument creating the change |
07.10.2005, Term
Loan Agreement executed by company in favour of Indian Overseas Bank
(referred to as the Lender) |
|
2) Amount secured by the charge/amount owing on the securities of charge |
A Term Loan of
Rs.50.000 millions agreed to be lent and advanced by IOB to the Company in
terms of the Term Loan Agreement dated 7th day of October, 2005
and IOB of the other part. |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
On First pari
passu charge basis on the block of assets of the company. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The said Term Loan
of Rs.50.000 millions is repayable in thirty six monthly equal installments
together with interest, additional interest liquidated damages, premia on
prepayment, costs, charges, expenses and all other moneys payable by the
company to the IOB in terms of the said Term Loan Agreement. |
|
5) Name and Address and description of the person entitled to the charge. |
Indian Overseas
Bank, M |
|
6) Date and brief description of instrument modifying the charge |
NA |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
|
This form is for |
Modification of charge Creation of charge |
|
Charge
identification number of the modified |
90262817 |
|
Corporate
identity number of the company |
L55101AP1984PLC004941 |
|
Name of the
company |
NOVOPAN
INDUSTRIES LIMITED |
|
Address of the
registered office or of the principal place of business in |
Suryodaya 1-10-63/3, Begumpet, |
|
Type of charge |
Book Debts Movable Property Floating Charge Immovable
Property |
|
Particular of
charge holder |
Indian Bank, |
|
Nature of
description of the instrument creating or modifying the charge |
1.Agreement
Relating to Extension of Equitable Mortgage 2.Agreement of irrevocable
Letter of Credit 3.Agreement for
hypothecation of goods received under advance payment guarantees/LCs etc. 4.Agreement for
Inland Irrevocable Letter of Credit 5.Medium Term
Loan Agreement 6.Agreement for
Open Cash Credit 7.Agreement of
Hypothecation of Movables |
|
Date of
instrument Creating the charge |
12.09.2008 |
|
Amount secured by
the charge |
Rs.596.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 1. OCC (Rs.70.000 millions) - BPLR+0.25% Presently
14.25% p.a. 2.MTL I
(Rs.116.200 millions) - BPLR+TP-2% Presently 12.50% p.a. 3.MTL II
(Rs.42.600 millions) - BPLR+TP-2.50% Presently 12.00% p.a. 4.Imp./Inl LC
(Rs.140.000 millions) - 5% Margin for the entire limit 5.MTL III
(Rs.112.500 millions) - BPLR+TP-1% Presently 13.50% p.a. 6.MTL IV
(Rs.114.700 millions) - BPLR+TP-1% Presently 13.50% p.a. Terms of
Repayment Payable in 1. OCC (Rs.70.000
millions) - One Year 2.MTL I
(Rs.116.200 millions) - 7 years from Jan, 06 in equal monthly instalments. 3.MTL II
(Rs.42.600 millions) - 7 Years from Jan, 08 in equal monthly insalments 4.Imp./Inl LC
(Rs.50.000 millions) - One year 5.MTL III
(Rs.112.500 millions) - 5 Years from April, 09 in equal monthly instalments 6.MTL IV
(Rs.114.700 millions) - 7 Years after initial moratorium of 9 months but not
later than Oct,09 in equal monthly instalments. Margin 1. OCC (Rs.70.000
millions) - 25% 2.MTL I
(Rs.116.200 millions) - 25% 3.MTL II
(Rs.42.600 millions) - 25% 4.Imp./Inl LC
(Rs.140.000 millions) - 5% 5.MTL III
(Rs.112.500 millions) - 25% 6.MTL IV
(Rs.114.700 millions) - 25% Extent and
Operation of the charge Working Capital Primary: Hypothecation of Stocks and Book debts /
Pari passu first charge on current assets Collateral: Pari Passu II charge on fixed assets (both
existing and future) Term Loan Primary: Net Block of Fixed Assets + New project
proposed near Chenna / Pari passu first charge on fixed assets of the company
as a whole (both existing and future) with IOB. Collateral: Pari Passu II charge on entire Current
Assets |
|
Short particulars
of the property charged |
Equitable
mortgage of factory building and land with an extent of 36 acres and 33
guntas in survey No.22A, 23, 26, 27A,
27E, 28E situated at For Working
Capital Primary: Pari passu I Charge on Current Assets Collateral: Pari Passu II charge on fixed assets (both
existing and future) For Term Loan Primary: Pari Passu I charge on F.A. (both existing
& future) with IOB Collateral: Pari Passu II charge on entire Current
Assets |
|
Date of latest
modification prior to the present modification |
13.12.2007 |
|
Particulars of
the present modification |
Total Limits are
now Rs.596.000 consisting of 1. OOC Rs.70.000
millions 2.MTL-I
Rs.116.200 millions 3.MTL-II
Rs.42.600 millions 4.LC Limits
Rs.140.000 millions 5.MTL-III
Rs.112.500 millions 6.MTL-IV
Rs.114.700 millions covering Pari
passu I charge on CA and Pari Passi II charge on FA (both present and future)
for working capital and Pari passu I charge on FA (both present and future)
with IOB and Pari Passu II charge on CA for Term Loans. |
FIXED ASSETS
- Land
- Buildings
- Plant and Machinery
- Furniture and Office Equipment
- Vehicles
WEBSITE DETAILS
PROFILE
The Company stands out among wood based industries in the country to have pioneered the concept of Prelaminated Particle Board way back in the year 1979. The Particle Boards, at that time, were not acceptable as a substitute for Plywood or Block Board due to it’s poor quality and sustainability to the practices of Indian Carpentry. Novopan started by bringing the best available technology from Fahrni Institute of Switzerland into the Country by being their exclusive Licensee. The Company was an instrumental in developing the product tailor made to the Indian Furniture and Carpentry needs to make it an equivalent substitute for Plywood Laminate Combination.
To enhance the image of Particle Board in the Country, The Company, for the
first time, developed the Indian Standards IS 12823 for Prelam Boards on the
basis of German Standards DIN 68765. In
Within few years of commencing the Commercial Production, The Company launched
backward and forward integradation by setting-up their own Resin Manufacturing
Facility as well as Mechanized Furniture Factory. The key to the acceptability
of Particle Board is Quality of Synthetic Resin used
specially for lamination as the Abrasion Resistance, Scratch Resistance,
Resistance of Stains depend on it. To achieve the same, The Company entered
into long term technical collaboration with the world leaders from
In order to explain the usage and fabrication techniques in modern furniture
manufacture, They set-up a model
urniture line.
Both the above Projects were successfully done by The Company.
Although, in the beginning, the growth of Particle Board Industry was slow,
mainly, due to inertia from the Carpentry Segment, the usage of Particle Board
by more and more Mechanized Furniture Manufacturing Companies is increased.
During the year 2001-2002, the demand for Particle Board increased beyond it’s
capacity. This led to the setting-up of another Particle Board Manufacturing
Plant with a higher capacity at Shadnagar, in the district of Mahaboobnagar.
They have taken care of modern concept of manufacturing activity in the new
Plant.
During the last year, the demand for Particle Board has increased so high that imports
from
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.45.31 |
|
|
1 |
Rs.70.26 |
|
Euro |
1 |
Rs.59.56 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
27 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.