MIRA INFORM REPORT
|
Report Date : |
16.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
BHANSALI ENGINEERING POLYMERS LIMITED |
|
|
|
|
Registered Office : |
Bhansali House, A-5, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
09.04.1984 |
|
|
|
|
Com. Reg. No.: |
11-032637 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 165.906 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L27100MH1984PLC032637 |
|
|
|
|
Legal Form : |
Public limited liability company. Company’s Shares are listed on Stock
Exchange. |
|
|
|
|
Line of Business : |
Manufacturer and Seller of Acrylonitrile Butadiene Styrene (ABS)
Resine and Styrene Butadiene Rubber Latex. |
|
|
|
|
No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8900000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having satisfactory
track. 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
Bhansali House, A-5, |
|
Tel. No.: |
91-22-26731779-85 |
|
Fax No.: |
91-22-26731796 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Bhansali Nagar, Taluka Sausar, District Chhindwara-480108, Madhya
Pradesh, India |
|
Tel No.: |
91-7165-226376/79 |
|
Fax No.: |
91-7165-226381 |
|
Email : |
|
|
|
|
|
Factory 2 : |
Plot No. SP-138-143, Ambaji Industrial Area, Abu Road – 307026,
Rajasthan, India |
|
Tel No.: |
91-2974-226781/82/83/84/84 / 226862 / 226213 |
|
Fax No.: |
91-2974-226737 |
|
|
|
|
Marketing Offices: |
Located at :
|
DIRECTORS
AS ON: 31.03.2011
|
Name : |
Mr. Babulal M Bhansali |
|
Designation : |
Managing Director |
|
Address : |
Plot No.22, Bhansali House JVPD Scheme, |
|
Date of Birth/Age : |
05.03.1954 |
|
Date of Appointment : |
08.09.1984 |
|
|
|
|
Name : |
Mr. Jayesh B Bhansali |
|
Designation : |
Whole-time-director |
|
Address : |
Plot No.22, Bhansali House JVPD Scheme, |
|
Date of Birth/Age : |
25.07.1983 |
|
Date of Appointment : |
24.06.2006 |
|
|
|
|
Name : |
Mr. Munish C Gupta |
|
Designation : |
Director |
|
Address : |
House No-771, Sector -15, Part-11, Gurgaon-122001, |
|
Date of Birth/Age : |
23.07.1938 |
|
Date of Appointment : |
30.09.2002 |
|
|
|
|
Name : |
Mr. Chavaly S Sastry |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
23.12.1931 |
|
Date of Appointment : |
14.06.1991 |
|
|
|
|
Name : |
Mr. Pukhraj R Bhansali |
|
Designation : |
Director |
|
Address : |
Bhansali House, A-5, |
|
Date of Birth/Age : |
12.11.1946 |
|
Date of Appointment : |
07.02.1986 |
|
|
|
|
Name : |
Mr. Bakhtiar S Bhesania |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth/Age : |
03.11.1933 |
|
Date of Appointment : |
26.07.2003 |
KEY EXECUTIVES
|
Name : |
Mr. Hasmukh Thakkar |
|
Designation : |
Vice President (Marketing) |
|
|
|
|
Name : |
Mr. Jayesh B. Bhansali |
|
Designation : |
Executive Director (Corporate) |
|
|
|
|
Name : |
Mr. Kenji Asakawa |
|
Designation : |
Executive Director (Technical) |
|
|
|
|
Name : |
Mr. Hitarth Vasavada |
|
Designation : |
Vice President (Marketing) |
|
|
|
|
Name : |
Mr. Venkat Gume |
|
Designation : |
Vice President |
|
|
|
|
Name : |
Mr. D.N. Mishra |
|
Designation : |
Company Secretary and AVP (Legal) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
31,046,013 |
18.71 |
|
Bodies Corporate |
50,566,552 |
30.48 |
|
Any Others (Specify) |
1,020,863 |
0.62 |
|
|
1,020,863 |
0.62 |
|
|
82,633,428 |
49.81 |
|
(2) Foreign |
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
82,633,428 |
49.81 |
|
|
|
|
|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
6,500 |
- |
|
Financial Institutions / Banks |
38,500 |
0.02 |
|
|
45,000 |
0.03 |
|
(2) Non-Institutions |
|
|
|
Bodies Corporate |
57,633,147 |
34.74 |
|
Individuals |
|
|
|
|
13,890,113 |
8.37 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
8,889,622 |
5.36 |
|
Any Others (Specify) |
2,814,330 |
1.7 |
|
Non Resident Indians |
75,272 |
0.05 |
|
|
286,452 |
0.17 |
|
Market Maker |
4,466 |
- |
|
Directors & their Relatives & Friends |
680,126 |
0.41 |
|
Hindu Undivided Families |
1,766,514 |
1.06 |
|
|
1,500 |
- |
|
Sub Total |
83,227,212 |
50.17 |
|
Total Public shareholding (B) |
83,272,212 |
50.19 |
|
Total (A)+(B) |
165,905,640 |
100 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
(1) Promoter and Promoter Group |
- |
- |
|
|
- |
- |
|
Sub Total |
- |
- |
|
Total (A)+(B)+(C) |
165,905,640 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Acrylonitrile Butadiene Styrene (ABS)
Resine and Styrene Butadiene Rubber Latex. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS : AS ON : 31.03.2011
INSTALLED CAPACITY:
|
Particulars |
Current Year |
|
|
Acrylonitrile Butadiene Styrene (ABS) Resins
/ Styrene Acrylonitrile (SAN) Resins |
51000 TPA |
|
|
ACTUAL PRODUCTION |
|
|
|
(as certified by the management and relies
open by the auditors, being a technical matter) |
Quantity (MT) |
Value (Rs. In Millions) |
|
1) For Captive Consumption SAN Resins |
25672 |
-- |
|
2) Meant for ABS Resins SAN Resins |
35895 5307 |
-- -- |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||
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|
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Bankers : |
Industrial Finance Branch, Apeejay House No:3,
|
||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B.L Dasharda and Associates Chartered Accountant |
|
Address : |
2, Shreyas, Ground Floor, |
|
Pan No.: |
AAAFB2781M |
|
|
|
|
Solicitors : |
|
|
Name : |
Mulla and Mulla and Craigie Blunt and Caroe |
|
Address : |
India |
CAPITAL STRUCTURE
AS ON: 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Share |
Rs.1/- Each |
Rs. 200.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
165905640 |
Equity Share |
Rs.1/- Each |
Rs. 165.906
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
165.906 |
165.906 |
165.906 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2050.614 |
1834.895 |
1830.504 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2216.520 |
2000.801 |
1996.410 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
558.635 |
562.804 |
914.863 |
|
|
2] Unsecured Loans |
0.000 |
40.000 |
0.000 |
|
|
TOTAL BORROWING |
558.635 |
602.804 |
914.863 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
61.800 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2775.155 |
2665.405 |
2911.273 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1655.282 |
1683.211 |
1826.593 |
|
|
Capital work-in-progress |
0.000 |
105.926 |
82.701 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
5.471 |
0.000 |
5.975 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
419.022 |
405.512 |
130.148 |
|
|
Sundry Debtors |
1860.632 |
1594.381 |
1615.483 |
|
|
Cash & Bank Balances |
135.668 |
81.023 |
63.546 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
174.946 |
179.495 |
226.868 |
|
Total
Current Assets |
2590.268
|
2260.411
|
2036.045
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1.416 |
13.616 |
851.601 |
|
|
Sundry Creditors |
1433.291 |
1315.825 |
3.809 |
|
|
Provisions |
41.159 |
54.702 |
184.631 |
|
Total
Current Liabilities |
1475.866
|
1384.143
|
1040.041
|
|
|
Net Current Assets |
1114.402
|
876.268
|
996.004
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2775.155 |
2665.405 |
2911.273 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4639.162 |
3129.763 |
2251.120 |
|
|
|
Other Income |
36.660 |
9.931 |
8.815 |
|
|
|
TOTAL (A) |
4675.822 |
3139.694 |
2259.935 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw material consumed |
3537.356 |
2559.636 |
1646.241 |
|
|
|
Manufacturing, Administrative and selling Expenses |
442.406 |
309.189 |
444.398 |
|
|
|
Trading purchases |
23.998 |
0.000 |
0.000 |
|
|
|
Increase / Decrease in stock |
96.518 |
(123.276) |
136.945 |
|
|
|
TOTAL (B) |
4100.278 |
2745.549 |
2227.584 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
575.544 |
394.145 |
32.351 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
121.272 |
146.500 |
168.579 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
454.272 |
247.645 |
(136.228) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
60.510 |
57.890 |
58.244 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
393.762 |
189.755 |
(194.472) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
59.665 |
84.464 |
(80.281) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
334.097 |
105.291 |
(114.191) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
310.432 |
205.141 |
319.332 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
644.529 |
310.432 |
205.141 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
89.017 |
1.350 |
97.449 |
|
|
TOTAL EARNINGS |
89.017 |
1.350 |
97.449 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and Spare Parts |
0.409 |
0.767 |
0.082 |
|
|
|
Raw Material |
1438.543 |
1189.508 |
1043.072 |
|
|
TOTAL IMPORTS |
1438.952 |
1190.275 |
1043.154 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.01 |
0.63 |
(0.69) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
913.940 |
1032.160 |
1031.630 |
1166.280 |
|
Total Expenditure |
793.070 |
1027.800 |
971.910 |
1148.930 |
|
PBIDT (Excl OI) |
120.870 |
4.360 |
59.720 |
17.350 |
|
Other Income |
1.410 |
2.010 |
1.320 |
2.270 |
|
Operating Profit |
122.280 |
6.370 |
61.040 |
19.610 |
|
Interest |
34.420 |
40.640 |
39.460 |
19.760 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
87.860 |
(34.270) |
21.580 |
(0.150) |
|
Depreciation |
15.210 |
14.810 |
14.580 |
12.430 |
|
Profit Before Tax |
72.650 |
(49.080) |
7.010 |
(12.580) |
|
Tax |
0.000 |
3.360 |
0.000 |
3.760 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
72.650 |
(52.430) |
7.010 |
(16.340) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
72.650 |
(52.430) |
7.010 |
(16.340) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.14 |
3.35 |
(5.05) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.48 |
6.06 |
(8.64) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.27 |
4.81 |
(5.03) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17 |
0.09 |
(0.10) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.91 |
0.99 |
0.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.75 |
1.63 |
1.96 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth
of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External
Agency Rating, if available |
No |
OVERVIEW OF THE ECONOMY:
Indian Economy has
shown a strong resilience against the severe adverse factors like rising inflation,
political disruptions and global economic shock of recession in developed
countries. The most crucial extant macroeconomic problem which is likely to
roadblock the growth of nation is INFLATION which was hovering around 9.8% in
April 2011 being highest in last two years followed by CORE CONSUMER PRICES
hovering around 15% primarily caused by high domestic demand and high fuel
cost, inter alia other factors.
The global
investing community has reposed a strong measure of confidence in Indian growth
story and improved the country’s positioning as an international investment
hub. The International Monetary Fund (IMF) has ranked
Infrastructure
Development is the key to the economic growth of any nation for which their
government has already committed an investment of $498 Billion in the
Infrastructure sector alone during 1th Five Year Plan and this is bound to
expand and strengthen the economy by sustained growth.
OPERATIONS AND FUTURE PLAN:
A record turnover
of Rs.5100.500 millions was achieved during the year as compared to Rs.
3396.300 millions in the previous year, an increase of more than 50%.
The financial
performance of the company also witnessed a significant turnaround with the
Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) at Rs.
575.500 millions an increase of 46% as compared to Rs. 394.100 millions in the
previous year. On similar lines the profit before tax (PBT) was Rs.393.800
millions an increase of 107% as compared to the PBT of Rs.189.800 millions last
fiscal. Consequently the Profit after tax (PAT) stood at Rs.334.100 millions
reflecting an increase of 217.28% as compared to Rs.105.300 millions reported
last year.
The company was
also able to optimally utilize the production facilities and achieve
significant growth in production and sales quantities as stated below.
|
Particulars |
2010-11 |
2009-10 |
% of Variance |
|
Production (In MT) |
41202 |
33334 |
(+) 23.6% |
|
Domestic Sales (In MT) |
41329 |
33256 |
(+) 24.3% |
The company has
successfully increased the sales volume to cater the vital demand of user
industries such as Automotive, Electrical appliances and Electronic equipments
among others.
With its bold effort
and thrust over the years, the company could enhance the overall manufacturing
capacity from 15000 TPA in 2000-2001 to 51000 TPA during the current year
witnessing an increase of 240%.
Furthermore the
company has formulated its plan to implement the overall manufacturing capacity
enhancement programme from the existing 51000 TPA to 125000 TPA (comprising of
120000 TPA ABS and 5000 TPA Saleable SAN) which is targeted to be achieved by
end of March-13 with the technical and engineering support of M/s Aker Powergas
Private Limited, Mumbai and barring unforeseen circumstances, the company would
endeavour its best to achieve this increased capacity and on implementation of
the said expansion programmes, the company would be in a position to achieve
the cost and quality leadership in domestic market and will become a
competitive player internationally.
The overall cost
for implementing the aforesaid expansion project with technical and engineering
assistance of M/s Aker Powergas Private Limited will amount to about Rs.
3000.000 millions comprised of Rs.2500.000 millions approx towards cost of Plant, Equipment and
Building and Rs. 500.000 millions approx towards cost of interest for external
financing, pre-operative cost and other allied factors
SAFETY AND ENVIRONMENT PROTECTION:
The Company has
continued to accord high priority to the areas of Safety and Environment
Protection. The Company has regular practice of taking up the training programs
for employees for creating continuous awareness about the compliance with
safety norms, its benefits and various safety measures to increase the safety
standards for all concerned. The Company has made Safety and Environment
Protection measures as the integral part of its operating system. Mock drills
and safety awareness programmes are being regularly conducted to ensure the
safety and environment protection.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
(A) INDUSTRY STRUCTURE
The Indian economy
is showing a steady growth in economic prosperity by maintaining its GDP growth
rate at over 8%. ABS consumption in
(B) INDUSTRY DEVELOPMENTS
The Indian
Industry has been growing at an impressive growth rate however there is still
high growth potentials. BEPL has targeted to increase its overall manufacturing
capacity from existing 51 KTPA to 125 KTPA (comprising of 120 KTPA ABS and 5
KTPA saleable SAN) by March-2013 and the blue print for this ambitious plan has
also been finalized which when commissioned in a full fledged manner, will
enable the company to become a low cost manufacturer and achieve the cost and
quality leadership in domestic market and also become internationally a
competitive player. With the aforesaid enhancement in overall manufacturing
capacity, the company will be able to fill the demand supply gap by way of
curtailing imports and tapping the overseas market. The domestic demand for ABS
is also further expected to increase with increase in GDP, growth in population
and increased use of plastics as a substitute to traditional goods.
(C) OUTLOOK AND OPPORTUNITIES
The year to come
is really a promising one with the facts presented in the foregoing. In the
current competitive world there is no survival without growth. The growth in a
highly competitive environment with international players is indeed a
formidable challenge. The irrational volatility in the prices of crude along
with the fluctuation in the foreign currency can be met out only by
establishing plant capacity to a level where economies of scale are fully met.
By implementing the expansion plan it would be possible to ensure the targeted
performance and fulfill the dream of BEPL becoming one of the low cost
manufactures of ABS in the world.
(d) SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE
The Company has
only one business segment covering ABS and SAN polymers. The figures of
production and
sales for both ABS
and SAN are furnished in the Notes to Accounts.
(e) RISKS AND CONCERNS
BEPL has been extremely
cautious in giving effect to its implementation strategy of expansion plan to
125 KTPA by March 2013.The major threat perceived by the company is the
slowdown of the global economy particularly the
(F) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has
proven ongoing system of internal controls to ensure optimal utilization of the
Company’s resources and protection thereof, facilitating accurate and speedy
compilation of accounts, management information reports and regular and
adequate compliance with statutes, laws and regulations. The Company has a well
defined organization structure, authority levels and internal guidelines and
rules for each areas of functioning. Moreover, regular internal audits ensure
adequacy of internal control systems, adherence to management instructions and
compliance with laws and regulations of the country.
CONTINGENT
LIABILITIES
|
Contingent
liability |
31.03.2011 |
|
|
(Rs. In Millions) |
|
Bills Discounted |
97.768 |
|
Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) |
14.189 |
|
Show Cause Notices issued in respect of payment of Excise Duty. The matters are subjoined and not provided for |
Nil |
|
Demand raised by Excise Authorities against which Appeals have been filed for which the company has been legally advised that these are goods cases and the demand is likely to be deleted |
12.000 |
|
TOTAL |
123.957 |
FIXED ASSETS
- Building
- Plant and
Machinery
- Furniture and
Fixture
- Office
Equipments
- Vehicles
AS PER WEBSITE
DETAILS
History
Subject was incorporated in the year 1986. The company was
promoted by Shri B. M. Bhansali, a first generation entrepreneur. BEPL was the
first company in
BUSINESS
DESCRIPTION
Bhansali Engineering Polymers Limited (BEPL) is a vertically integrated petrochemical company. The Company manufactures acrylonitrile butadiene styrene (ABS), which acts as a raw material for companies dealing in automobiles, home appliances, telecommunication, luggage, bus body and other applications. It also manufactures styrene acrylonitrile (SAN) resins. As of March 31, 2010, BEPL manufactured and produced variety of specialty grades and 1200 different color shades. ABS demonstrates resistance to mineral acids, alkalis, phosphoric, oleic acids and aqueous solutions, such as ferric sulphate, sodium carbonate, ammonium chloride, copper sulphate, sodium chloride, sodium bisulphite, ferric chloride, food acids, hydrogen peroxide bleaches and mineral oils. For the nine months ended 31 December 2010, Bhansali Engineering Polymers Limited's revenues increased 50% to RS3.28B. Net income totaled RS311.6M, up from RS125.9M. Revenues reflect an increase in income from operations. Net income also reflects the increase in foreign exchange gain, decreased depreciation expense and lower interest expenses. The Company is into production of acrylonitrile butadiene styrene.
M. C. GUPTA -
NON-EXECUTIVE INDEPENDENT CHAIRMAN OF THE BOARD – CHAIRMAN
Mr. M. C. Gupta is Non-Executive Independent Chairman of the Board of Bhansali Engineering Polymers Limited. He is an I.A.S. officer of 1960 batch and has served the Union and State Governments in various capacities including Industries Secretary, Government of India, Advisor, Industries Planning Commission. Retired as Chief Secretary, Government of Haryana in 1997. Currently, Advisor to United Nations Industrial Development Organization. (UNIDO). He holds M.A. (English).
BABULAL M. BHANSALI -
MANAGING DIRECTOR, EXECUTIVE DIRECTOR - DIRECTOR/BOARD MEMBER
Mr. Babulal M. Bhansali is Managing Director, Executive Director of Bhansali Engineering Polymers Limited. He has 15 years of Trading and thereafter 25 years on setting up and running Bhansali Engineering Polymers Limited as the main Promoter and Managing Director.
P. R. BHANSALI -
NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER
Mr. P. R. Bhansali is Non-Executive Independent Director of Bhansali Engineering Polymers Limited. He is an eminent Industrialist and a exporter of readymade garments, was the President of the Metal and Stainless Steel Merchants Association, Mumbai and Vice President of All India Garments Exporters and Manufacturers Association. Has been associated with the Company since it’s incorporation. He holds B.Com, LLB.
B. S. BHESANIA -
NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER
Dr. B. S. Bhesania is Non-Executive Independent Director of Bhansali Engineering Polymers Limited. He is an eminent Solicitor of High Court, Mumbai. He is a senior partner of M/s. Mulla and Mulla and Craigie Blunt and Caroe, one of the law firms of the country having international recognition.
C. S. SASTRY -
NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER
Mr. C. S. Sastry is Non-Executive Independent Director of Bhansali Engineering Polymers Limited. He entered Indian Administrative Service in 1956 and held key positions with The Government of Andhra Pradesh and the Union Government, specialising in Management, Administration and Development in the areas of Industrial Promotion, Defence and Agriculture. Retired as Secretary-Agriculture to the Government of India in 1989. Awarded with Padmashri in 1990
KENJI ASAKAWA -
EXECUTIVE DIRECTOR – TECHNICAL - CHIEF EXECUTIVE OFFICER
Mr. Kenji Asakawa is Executive Director - Technical of Bhansali Engineering Polymers Limited. He is a professional chemical engineer with a long career in chemical companies expert in process engineering, process operation, energy assessment and safety/ environment management. He is also a professional engineer (Chemistry) authorized by Japanese government.
BABULAL M. BHANSALI -
MANAGING DIRECTOR, EXECUTIVE DIRECTOR - MANAGING DIRECTOR
Mr. Babulal M. Bhansali is Managing Director, Executive Director of Bhansali Engineering Polymers Limited. He has 15 years of Trading and thereafter 25 years on setting up and running Bhansali Engineering Polymers Limited as the main Promoter and Managing Director.
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. 55.64 |
|
|
1 |
Rs. 87.31 |
|
Euro |
1 |
Rs. 68.81 |
INFORMATION DETAILS
|
Report Prepared by
: |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.