MIRA
INFORM REPORT
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Report Date : |
05.07.2011 |
IDENTIFICATION DETAILS
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Name : |
VACMET INDIA LIMITED |
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Formerly Known
As : |
VACMET PACKAGINGS
( |
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Registered
Office : |
Anant Plaza, 2nd Floor, 4/117-2A, Civil Lines, Church Road,
Agra – 282002, Uttar Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
03.03.1993 |
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Com. Reg. No.: |
20-034039 |
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Capital Investment
/ Paid-up Capital : |
Rs.98.000
Millions |
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CIN No.: [Company Identification
No.] |
U74899UP1993PLC034039 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
AGRV10053B |
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PAN No.: [Permanent Account No.] |
AAACV5120B |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Manufacturer of Polyester Films, Metallized and Speciality Coated
Products. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4240000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct 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
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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 : |
Anant Plaza, 2nd Floor, 4/117-2A, Civil Lines, Church Road,
Agra – 282002, Uttar Pradesh, India |
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Tel. No.: |
91-562-2525466/ 4050400 |
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Fax No.: |
91-562-2151188/ 2527064 |
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E-Mail : |
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Website: |
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Marketing Office : |
104/106, Tribuvan Complex, New Friends Colony, Mathura Road, New
Delhi, India |
DIRECTORS
AS ON 08.09.2009
|
Name : |
Mr. Dinesh Chand Agarwal |
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Designation : |
Managing Director |
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Address : |
4/117 E, Civil Lines, Church Road, Agra-282002, |
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Date of Birth/Age : |
15.01.1949 |
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Date of Appointment : |
03.03.1993 |
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Name : |
Mr. Padam Chand Agarwal |
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Designation : |
Director |
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Address : |
4/117 B, Civil Lines, Church Road, Agra-282002, |
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Date of Birth/Age : |
08.05.1944 |
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Date of Appointment : |
03.03.1993 |
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Name : |
Mr. Suresh H Chand Agarwal |
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Designation : |
Director |
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Address : |
4/117 D, Civil Lines, Church Road, Agra-282002, |
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Date of Birth/Age : |
08.03.1942 |
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Date of Appointment : |
03.03.1993 |
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Name : |
Mr. Narain Raj Agarwal |
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Designation : |
Director |
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Address : |
4/117 C, Civil Lines, Church Road, Agra-282002, |
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Date of Birth/Age : |
08.07.1947 |
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Date of Appointment : |
03.03.1993 |
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Name : |
Mr. Nitin Agarwal |
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Designation : |
Director |
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Address : |
4/117 C, Civil Lines, Church Road, Agra-282002, |
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Date of Birth/Age : |
29.07.1969 |
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Date of Appointment : |
08.09.2009 |
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Name : |
Mr. Rahul Agarwal |
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Designation : |
Director |
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Address : |
4/117 C, Civil Lines, Church Road, Agra-282002, |
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Date of Birth/Age : |
02.05.1973 |
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Date of Appointment : |
08.09.2009 |
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Name : |
Mr. Mayank Agarwal |
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Designation : |
Director |
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Address : |
4/117 E, Civil Lines, Church Road, Agra-282002, |
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Date of Birth/Age : |
12.11.1976 |
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Date of Appointment : |
08.09.2009 |
KEY EXECUTIVES
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Name : |
Ms. Shweta Gupta |
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Designation : |
Secretary |
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Address : |
R-39/43 Old Idgah Colony, Agra-282001, |
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Date of Birth/Age : |
12.10.1984 |
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Date of Appointment : |
08.12.2008 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 08.09.2009
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Names of Shareholders |
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No. of Shares |
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Dinesh Chand Agarwal |
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3364000 |
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Shailendra Agarwal |
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133000 |
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Raj Narain Agarwal |
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845000 |
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Suresh Chand Agarwal |
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454500 |
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Padam Chand Agarwal |
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183000 |
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20000 |
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Umesh Agarwal |
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68000 |
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Bimla Agarwal |
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23000 |
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Sudha Agarwal |
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16000 |
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Sangeeta Agarwal |
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10000 |
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Rekha Agarwal |
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42000 |
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Shalini Agarwal |
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67000 |
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Neeta Agarwal |
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23000 |
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Rajni Agarwal |
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15000 |
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Manoj Agarwal |
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32000 |
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Pawan Agarwal |
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23000 |
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Nitin Agarwal |
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155000 |
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Rahul Agarwal |
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140500 |
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Deepak Agarwal Manjuri Agarwal |
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25000 |
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Manjuri Agarwal |
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83500 |
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Vacmet Finance and Investment Limited, |
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1050000 |
AS ON 08.09.2009
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Bodies
corporate |
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18.00 |
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Directors
or relatives of directors |
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71.00 |
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Other
top fifty shareholders |
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11.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Polyester Films, Metallized and Speciality Coated
Products. |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
Bank
of International
Business Branch, 13, M.G. Road, Agra-282001, Uttar Pradesh, India ·
Bank of ·
State Bank of ·
City Bank ·
Allahabad Bank ·
Standard Chartered Bank |
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Facilities : |
NOTE: (1) The Term Loans from Bank of Baroda (including buyer’s Credit from
other Banks) are secured by first exclusive charge on entire fixed assets
including Plant and Machinery and extension of charge on entire current
assets to BANK OF BARODA. (2) Working Capital Loans are secured by hypothecation of stocks, book
debts and bills of the company and extension charge on entire fixed assets of
the company. (3) Bank of Baroda has issued Letter of Comfort to Bank of India,
lntesa Sanpaolo SPA, City Bank (4) Bank of India Car Loan is secured by Hypothecation of Cars
purchased from the loan. (5) Allahabad Bank Term Loan is secured by exclusive hypothecation
over all the assets being created / to created aggregating Rs. 435.000
Millions and 1st pan-passu charges on the |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Tondon Mital and Associates Chartered Accountant |
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Address : |
F-5, |
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Tel. No.: |
91-562-4004525/ 2526449/ 3298751 |
CAPITAL STRUCTURE
AS ON 19.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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|
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|
13012957 |
Equity Shares |
Rs.10/- each |
Rs.130.130
Millions |
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AS ON 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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9800000 |
Equity Shares |
Rs.10/- each |
Rs.98.000
Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
98.000 |
98.000 |
86.200 |
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2] Share Application Money |
4.000 |
4.000 |
0.000 |
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3] Reserves & Surplus |
959.229 |
600.525 |
458.020 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1061.229 |
702.525 |
544.220 |
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LOAN FUNDS |
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1] Secured Loans |
963.162 |
1020.168 |
1221.273 |
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2] Unsecured Loans |
76.852 |
109.390 |
90.111 |
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TOTAL BORROWING |
1040.014 |
1129.558 |
1311.384 |
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DEFERRED TAX LIABILITIES |
146.139 |
105.272 |
31.530 |
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TOTAL |
2247.382 |
1937.355 |
1887.134 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1462.845 |
1466.578 |
1496.091 |
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Capital work-in-progress |
33.134 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
1.408 |
0.000 |
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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 |
294.142
|
196.394 |
222.870 |
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Sundry Debtors |
161.454
|
142.044 |
128.918 |
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Cash & Bank Balances |
206.404
|
272.999 |
346.815 |
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Security Deposits |
2.958
|
1.844 |
0.000 |
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Other Current Assets |
26.886
|
37.753 |
43.749 |
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Loans & Advances |
343.442
|
99.642 |
71.025 |
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Total
Current Assets |
1035.286
|
750.676 |
813.377 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
191.182
|
225.069 |
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Other Current Liabilities |
30.473
|
31.595 |
417.080 |
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Provisions |
62.404
|
24.895 |
5.371 |
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Total
Current Liabilities |
284.059
|
281.559 |
422.451 |
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Net Current Assets |
751.227
|
469.117 |
390.926 |
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PRELIMINARY EXPENSES |
0.176 |
0.252 |
0.117 |
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TOTAL |
2247.382 |
1937.355 |
1887.134 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
2751.714 |
2427.492 |
2194.373 |
|
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Other Income |
81.784 |
69.077 |
34.513 |
|
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TOTAL (A) |
2833.498 |
2496.569 |
2228.886 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods sold |
1984..805 |
1742.478 |
1644.904 |
|
|
|
Excise duty |
177.636 |
234.144 |
265.001 |
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Administrative expenses |
14.246 |
13.955 |
11.005 |
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Personnel expenses |
42.372 |
22.135 |
17.511 |
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Selling and distribution expenses |
19.048 |
14.490 |
41.171 |
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Miscellaneous expenses |
23.456 |
14.981 |
12.786 |
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Bank commission |
9.085 |
13.014 |
5.369 |
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Audit fees |
0.100 |
0.045 |
0.045 |
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Preliminary expenses write off |
0.076 |
0.115 |
0.078 |
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TOTAL (B) |
2270.824 |
2055.357 |
1997.870 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
562.674 |
441.212 |
231.016 |
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Less |
INTEREST (D) |
62.089 |
96.514 |
70.062 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
500.585 |
344.698 |
160.954 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
139.018 |
138.904 |
118.183 |
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PROFIT BEFORE
TAX (E-F) (G) |
361.567 |
205.794 |
42.771 |
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Less |
TAX (H) |
103.463 |
98.689 |
28.864 |
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PROFIT AFTER TAX
(G-H) (I) |
258.104 |
107.105 |
13.907 |
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Earnings Per
Share (Rs.) |
26.34 |
10.93 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.11
|
4.29 |
0.62 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
13.14
|
8.48 |
1.95 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.47
|
9.28 |
1.85 |
|
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Return on Investment (ROI) (PBT/Networth) |
|
0.34
|
0.29 |
0.07 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.25
|
2.00 |
3.19 |
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Current Ratio (Current Asset/Current Liability) |
|
3.64
|
2.67 |
1.93 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCES:
The overall
performance for the year was satisfactory with strong growth. The turnover for
the year ended 31st March 2010 at Rs.2750.000 Millions as against Rs.2420.000
Millions in the preceding accounting year recorded an increase of 13.63% on
annualized basis. Profit before interest depreciation and Taxes for the year
ended 31st March 2010 stood at Rs.562.700 Millions showing a growth of 27.53%
on an annualized basis over the preceding accounting period ending on 31st
March 2009, mainly due to, better operating efficiencies and strong revenue
growth. The Company recorded a healthy net Profit after Tax of Rs.258.100
Millions during the year.
FUTURE OUTLOOK:
Packaging in the future differentiator of FMCG products,
growth of packaging industry is mainly dependent on Food industry,
pharmaceutical industry and retail industry.
World wide demand for converted flexible packaging is growing rapidly. Factors contributing to rising converted packaging demand include growth in food and beverage shipments, which represent the largest growth, in addition, cost performance advantages, as well as ongoing developments in industries and value added features, and will continue to favour flexible packaging products over their rigid counter effects.
The fastest increases will occur in developing regions of
the world. Asia, Latin America, Eastern Europe,
The Company expects a high growth rate in the consumption of Flexible Packaging Film in domestic market because the consumer now prefers packaging to be light weight, shatter proof, cost effective, easy to handle and with good protection. Demand for Thin PET Films is expected to grow at 6-8% per annum globally and 17-18% in the domestic market. The rapid growth is creating greater opportunities for the use in flexible packaging film in consumer products. The Board of Directors is assured that this will definitely give the boost to industry.
Trade barriers in form of Anti dumping and Anti Subsidy duties on Indian PET film
manufacturers in
The Company follows a strategic planning to capture market share in the both in International and domestic sales in order to utilize its full capacity. Further the company has strengthened its Research and Development activities to introduce new range of products. The overall future of the industry and in particular of the company seems good and long term prospects are encouraging.
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U74899UP1993PTC034039 |
|
Name of the
company |
VACMET PACKAGINGS
( |
|
Address of the
registered office or of the principal place of business in |
|
|
Type of charge |
Others |
|
Particular of
charge holder |
Bank of |
|
Email |
|
|
Nature of
description of the instrument creating or modifying the charge |
General Form of
Guarantee |
|
Date of
instrument Creating the charge |
04.12.2008 |
|
Amount secured by
the charge |
Rs.30.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As per Agreement Terms of
Repayment As per Agreement Margin As per Agreement Extent and
Operation of the charge As per Agreement |
|
Short particulars
of the property charged |
Corporate
Guarantee in Favour of Polypacks Industries for advance of Rs.30.000
Millions. |
FIXED ASSETS:
·
Land and Site Development
(Leasehold Hold)
·
Land and Site Development
(Free Hold)
·
Building
·
Plant and Machinery
·
Electric Fittings
·
Vehicles
·
Motor Car
·
Office Furniture
·
Capital Work in Progress
AS PER WEBSITE
PROFILE:
Subject is a privately held company involved in production of high end packaging
materials having applications in various food and non food sectors. Vacmet has
four manufacturing sites with an installed capacity of 20,000 tons of converted
products and 20000 tons of Polyester Films per annum.
Subject has strong domestic and International presence. It exports to 35
countries across the globe and has received several awards for export
performances.
Subject diversified product range caters to several segments including
Flexible Packaging, Security , Medical, Textiles, Labelling, and Decoration.
Major customers includes large number of converters that makes flexible
laminates for companies like Unilever, P and G, Colgate Palmolive, ITC etc.
With strong direct presence and good networking
and distribution partners, Vacmet
products are sold to even far flung areas.
Subject has been in the forefront to conserve energy and make optimum
utilization of it. It has invested in waste heat recovery plants and uses waste
heat generated for air conditioning units.
The objective and corporate philosophy of the company has been to
provide premium quality flexible packaging films and paper through optimum use
of resources by building and maintaining a team of motivated and committed work
force which meets professional and human standards of excellence.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.46 |
|
|
1 |
Rs.71.53 |
|
Euro |
1 |
Rs.64.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.