MIRA
INFORM REPORT
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Report Date : |
19.01.2011 |
IDENTIFICATION DETAILS
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Name : |
MARVEL INDUSTRIES LIMITED |
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Registered Office : |
A-6, Midc Sinnar Industrial Area, Ma.Legaon, Sinnar,
Nasik-422113. |
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Country : |
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Financials (as on) : |
31.03.2009 |
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Date of Incorporation : |
05.02.1992 |
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Com. Reg. No.: |
065247 |
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CIN No.: [Company
Identification No.] |
U28129MH1992PTC065247 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKM02028F |
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Legal Form : |
Public Limited Liability Company. Company's Shares are listed on the
Stock Exchanges |
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Line of Business : |
Manufacturer of HDPE/PP Woven Sacks/Bags and HDPE/PP Woven
Sacks/Bags |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Maximum Credit Limit : |
-- |
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Status : |
Sick Unit |
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Payment Behaviour : |
Slow |
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Litigation : |
- |
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Comments : |
Subject is a sick unit and has been referred to the BIFR. Its network
has been eroded. Payments are reported as slow and delayed. The company can be considered for any business dealings on fully and
secured trade terms only. |
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 |
LOCATIONS
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Registered Office/Factory : |
A-6, Midc Sinnar Industrial Area, Ma.Legaon, Sinnar,
Nasik-422113. |
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Tel. No.: |
91-2551-230761/230861/230951 |
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Fax No.: |
91-2551-230962 |
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Email : |
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Corporate Office : |
Unit No. 2, 1st Floor, Mahalaxmi Industrial Estate, Gandhi
Nagar, Lower Parel (West), Mumbai – 400013 |
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Tel. No.: |
91-22-24970748 |
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Fax No.: |
91-22-24970756 |
DIRECTORS
AS ON 31.03.2009
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Name : |
Mr. Vikram Saboo |
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Designation : |
Chairman cum Managing Director |
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Name : |
Mr. Shailash Saboo |
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Designation : |
Executive Director |
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Name : |
Mr. Sanjiv Mehrotra |
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Designation : |
Director |
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Name : |
Mr. Lalit Tapuriah |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
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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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1) Indian |
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a) Individuals / Hindu Undivided Family |
456340 |
10.31 |
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b) Bodies corporate |
1665200 |
37.61 |
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2) Foreign |
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(B) Public Shareholdings |
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1) Institutions |
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a) Mutual Funds |
800 |
0.02 |
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2) Non – Institution |
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a) Bodies corporate |
1285230 |
29.03 |
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b) Individuals |
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i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
501570 |
11.33 |
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ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
483660 |
10.92 |
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c) Any other |
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i) Non Residence Indians |
35000 |
0.79 |
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Total |
4427800 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of HDPE/PP Woven Sacks/Bags and HDPE/PP Woven
Sacks/Bags |
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Products : |
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GENERAL INFORMATION
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Bankers : |
v Corporation Bank v ICICi Bank Limited v
The South Indian Bank Limited |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Mr. Sanjay Dos! Chartered Accountant |
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Address : |
502, Manavsthal, Gokuldham, Goregaon (East), Mumbai - 400 063. |
CAPITAL STRUCTURE
AS ON 31.03.2006
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 100.000
Millions |
|
10000000 |
Preference Shares |
Rs. 10/- Each |
Rs. 100.000 Millions |
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Total |
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Rs.
200.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
4427800 |
Equity Shares |
Rs. 10/- Each |
Rs. 44.278 Millions |
|
600000 |
10% Redeemable Cumulative Preference (Redeemable at par on 09.11.2003) |
Rs. 10/- Each |
Rs. 6.000 Millions |
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800000 |
10% Redeemable Cumluative Preference Shares (Redeemable at par on 22.07.2004) |
Rs. 10/- Each |
Rs. 8.000 Millions |
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1000000 |
13.5% Redeemable Cumluative Preference Shares (Redeemable at par on 01.09.1999) |
Rs. 10/- Each |
Rs. 10.000 Millions |
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1000000 |
13.5% Redeemable Cumluative Preference Shares (Redeemable at par on 17.09.1999) |
Rs. 10/- Each |
Rs. 10.000 Millions |
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Total |
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Rs. 78.278 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2009 |
31.03.2008 |
31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
78.280 |
78.280 |
78.280 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
(975.550) |
(893.320) |
(741.060) |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
(897.270) |
(815.040) |
(662.780) |
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LOAN FUNDS |
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1] Secured Loans |
792.210 |
691.960 |
605.490 |
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2] Unsecured Loans |
123.760 |
139.780 |
143.390 |
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TOTAL BORROWING |
915.970 |
831.740 |
748.880 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
18.700 |
16.700 |
86.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
50.820 |
61.690 |
71.420 |
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Capital work-in-progress |
0.000 |
0.000 |
8.690 |
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INVESTMENT |
0.020 |
0.020 |
0.100 |
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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 |
43.680
|
33.600 |
72.770 |
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Sundry Debtors |
24.850
|
28.150 |
14.920 |
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Cash & Bank Balances |
4.160
|
4.940 |
1.870 |
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Other Current Assets |
0.150
|
3.200 |
1.380 |
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Loans & Advances |
25.000
|
25.690 |
16.060 |
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Total
Current Assets |
97.840
|
95.580 |
107.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
0.000
|
0.000 |
0.000 |
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Others Current Liabilities |
121.540
|
133.300 |
94.360 |
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Provisions |
8.440
|
7.290 |
6.750 |
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Total
Current Liabilities |
129.980
|
140.590 |
101.110 |
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Net Current Assets |
(32.140)
|
(45.010) |
5.890 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
18.700 |
16.700 |
86.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2009 |
31.03.2008 |
31.03.2007 |
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SALES |
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Income |
453.800 |
488.900 |
513.400 |
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Other Income |
11.500 |
15.200 |
44.800 |
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TOTAL (A) |
465.300 |
504.100 |
558.200 |
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Less |
EXPENSES |
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Increased/Decreased in Stock |
0.000 |
37.500 |
(31.500) |
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Raw Material Consumed |
307.000 |
387.900 |
468.800 |
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Power and Fuel Cost |
40.200 |
38.700 |
36.800 |
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Employee Cost |
41.300 |
39.200 |
29.300 |
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Other Manufacturing Expenses |
13.900 |
17.100 |
20.800 |
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Selling and distribution Expenses |
1.300 |
0.000 |
0.000 |
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Miscellaneous Expenses |
14.100 |
20.200 |
52.200 |
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TOTAL (B) |
417.800 |
540.600 |
576.400 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
47.500 |
(36.500) |
(18.200) |
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Less |
FINANCIAL
EXPENSES (D) |
118.600 |
104.400 |
93.400 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(71.100) |
(140.900) |
(111.600) |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
11.300 |
11.300 |
11.300 |
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PROFIT BEFORE
TAX (E-F) (G) |
(82.400) |
(152.200) |
(122.900) |
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Less |
TAX (I) |
(0.200) |
0.100 |
0.200 |
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PROFIT AFTER TAX
(G-I) (J) |
(82.200) |
(152.300) |
(123.100) |
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Earnings Per
Share (Rs.) |
(18.57) |
(34.39) |
-- |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2009 |
31.03.2008 |
31.03.2007 |
|
PAT / Total Income |
(%) |
(17.66)
|
(30.21) |
(22.05) |
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Net Profit Margin (PBT/Sales) |
(%) |
(18.16)
|
(31.13) |
(23.94) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(55.43)
|
(96.78) |
(68.89) |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.09)
|
(0.19) |
(0.18) |
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Debt Equity Ratio (Total Liability/Networth) |
|
(1.16)
|
(1.19) |
(1.28) |
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Current Ratio (Current Asset/Current Liability) |
|
0.75
|
0.68 |
1.06 |
LOCAL AGENCY FURTHER INFORMATION
History
Incorporated in the early '90s, Marvel Industries manufactures fabrics and sacks with an installed capacity of 3000 tpa. The company's products are used for packing cement, grains, fertilisers, etc.
The expanded capacity from 1020 tpa to 3000 tpa commenced commercial
production from Sep.'94. Its products have been well accepted in the
market.
It has embarked on an expansion to increase the capacity by 1800 tpa.
Also, it has finalised plans for diversification by setting up a unit to
manufacture cast polypropylene film with a capacity of 2500 tpa.
At the end of the financial year 1999-2000, the networth of the company
has been completely eroded by the accumulated losses and hence the company has
become a sick industrial company and neccesary reference is being filed with
the BIFR.
OPERATIONS:
During the year, the turnover of the company was Rs.466.048 Decreased Millions against Rs.504.143 Millions in previous year 2007-2008. The loss after tax has decreased from Rs.152.256 Millions in previous year 2007-2008 to Rs.82.232 Millions in the current year 2008-2009.
AS PER WEBSITE DETAILS
The company was incorporated on February 5, 1992 as a public limited company and it was issued certificate of
commencement of business on April 23, 1992 from the Registrar of Companies,
Mumbai,
The company is
presently engaged in the manufacture of HDPE/PP woven sacks of a total capacity
of 2880 tpa at MIDC, Malegaon Industrial Estate, Sinnar, District Nashik,
The company started
the manufacture of HDPE/PP woven sacks in May, 1993 with a capacity of 1020
tpa. The project of the company was part
financed by a public issue of Rs. 3.360 Millions, promoters contribution of Rs.
12.300 Millions, rupee term loan of Rs. 22.500 Millions from SICOM/ICICI and
state subsidy of Rs. 3.000 Millions. The
company later expanded its capacity to 2880 tpa in September, 1994. The expansion was part financed by a rights
issue of Rs. 15.660 Millions at par, term loan from ICICI/SICOM of Rs. 45.000
Millions and bridge loan from SICOM of Rs. 1.875 Millions.
During the year 1993-94, the company produced
903 MTs of Polypropylene (PP) woven sacks (including 442 MTs of job work)
indicating almost full capacity utilisation.
During 1994-95, the company produced 1641 MTs of woven sacks (including
37 MTs of jobwork) indicating a capacity utilisation of 82.05%.
For the eleven month period ended February 29,
1996 the company manufactured 2352 MTs of woven sacks indicating a capacity
utilisation of 89.09%.
The total cost of the proposed project was
earlier estimated at Rs.290.000 Millions.
However, there was a cost overrun of Rs. 7.357 Millions in the expansion
project which increased the total project cost to Rs.297.357 Millions. The capital cost of expansion project was
estimated at Rs. 64.400 Millions, which was increased to Rs. 71.757 Millions
and of diversification project is Rs. 132.600 Millions. The commercial production of the expansion
project was delayed by three months and it started in March, 1996. Industrial Credit & Investment
Corporation of India (ICICI) has sanctioned a term loan of Rs. 75.000 Millions
and SICOM has given a sanction of Rs. 35.000 Millions for the proposed project.
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 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.45.53 |
|
|
1 |
Rs.72.55 |
|
Euro |
1 |
Rs.60.62 |
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.