MIRA INFORM REPORT

 

 

Report Date :

08.06.2012

 

IDENTIFICATION DETAILS

 

Name :

PREMIUM PAPER AND BOARD INDUSTRIES LIMITED (w.e.f. 17.01.2007)

 

 

Formerly Known As :

GANDHITEX MULTIPLEX LIMITED (w.e.f. 16.03.2000)

GANDHITEX PAPER MILLS LIMITED

 

 

Registered Office :

John Roberts Compound, 1st Floor, Sewari Fort Road, Sewari (East), Mumbai – 400 015, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

23.04.1996

 

 

Com. Reg. No.:

11-099075

 

 

Capital Investment / Paid-up Capital :

Rs.127.537 millions

 

 

CIN No.:

[Company Identification No.]

U21010MH1996PLC099075

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMG08418E

 

 

PAN No.:

[Permanent Account No.]

AAACG3599F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturing of Paper and Paper Board.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1404000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. There appears some dip in the profitability of the company in the financial year 2009-10.  However, financial position of the company appears to be good. 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.

 

INFORMATION DECLINED

 

Unable to contact

 

LOCATIONS

 

Registered Office :

John Roberts Compound, 1st Floor, Sewari Fort Road, Sewari (East), Mumbai – 400 015, Maharashtra, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

gandhitex@hotmail.com

gandhitex@gmail.com

premiumpaper@gmail.com

Website :

www.preimumpaper.in

 

 

Administrative Office :

A/202, Koldongri Co-operative Housing Society, International Airport Road, Andheri (East), Mumbai – 400 099, Maharashtra, India

 

 

Corporate Office :

A/702, Koldongari CHS, Parsiwada, Sahar Road, Andheri (East), Mumbai – 400 099, Maharashtra, India

 

 

Factory :

S.R. No.460, Anaval Village, Mahuva Taluka, Surat District – 396 510, Gujarat, India

 

 

DIRECTORS

 

As on 30.09.2010

 

Name :

Mr. Praful Ichhalal Gandhi

Designation :

Managing Director

Address :

548/11, Gautam Niwas, Dr. B.A. Road, Matunga, Mumbai – 400 014, Maharashtra, India

Date of Birth/Age :

24.07.1954

Qualification:

B.Com

Date of Appointment :

01.04.2009

DIN No.:

00473209

 

 

Name :

Mr. Avinash Pravinchandra Gandhi

Designation :

Whole-Time Director

Address :

74/1, Krishna Kunj, R.A. Kidwal Road, Matunga, Mumbai – 400 019, Maharashtra, India

Date of Birth/Age :

03.02.1971

Qualification:

F.Y. B.Com

Date of Appointment :

01.04.2009

DIN No.:

00473123

 

 

Name :

Mr. Mitesh Pravinchandra Gandhi

Designation :

Whole-Time Director

Address :

74/1, Krishna Kunj, R.A. Kidwal Road, Matunga, Mumbai – 400 019, Maharashtra, India

Date of Birth/ Age:

24.12.1975

Qualification:

B.Com

Date of Appointment :

01.04.2009

DIN No.:

00682983

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2010

 

Names of Shareholders

 

 

No. of Shares

Parimal K. Gandhi

 

6400

Kanaiyalal I. Gandhi

 

100

Jatin K. Gandhi

 

132800

Pravin I. Gandhi

 

6900

Praful I. Gandhi

 

413552

Vinay I. Gandhi

 

9100

Mitesh P. Gandhi

 

152912

U.S. Pandey

 

100

Avinash P. Gandhi

 

234000

Praful I. Gandhi HUF

 

105050

Neha P. Gandhi

 

465575

Pravin I. Gandhi HUF

 

75200

Vasanti P. Gandhi

 

224883

Deepali A. Gandhi

 

44525

Smita V. Gandhi

 

473570

Vinay I. Gandhi HUF

 

273950

Poonam V. Gandhi

 

15500

Parimal K. Gandhi HUF

 

26000

Kanaiyalal I. Gandhi HUF

 

28550

Jatin K. Gandhi HUF

 

35450

Sejuti P. Gandhi

 

326950

Priya J. Gandhi

 

136525

Dinesh A. Mehta

 

97500

Ganga H. Mulchandani

 

10000

Satish M. Mehta

 

234500

Madhavi D. Parekh

 

50000

Radhika Fabrics, India

 

50000

Rekha L. Mulchandani

 

10000

Kishu L. Mulchandani

 

6000

Gandhitex Finvest Limited, India

 

3219250

Binal M. Gandhi

 

140600

Ramaben K. Gandhi

 

191545

Torrent Real Estate Private Limited, India

 

1727300

Tulip Real Estate Private Limited, India

 

2319700

Kshatriya Commodities Private Limited

 

1509700

Total

 

12753687

 

As on 31.03.2011

 

Names of Allottees

 

 

No. of Shares

Gandhitex Finvest Private Limited, India

 

432170

Total

 

432170

 

As on 30.09.2010

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

69.20

Directors or relatives of directors

 

30.80

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Paper and Paper Board.

 

 

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

For the year ended

31.03.2010 (In tones)

Licensed Capacity

45000

Installed Capacity

(As certified by the Management)

45000

Actual Production

27313.410

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

v      The Shamrao Vithal Co-operative Bank Limited, C-Chitrapur, CHS Limited, 27 Road, T.T.S III, Bandra (West), Mumbai – 400 050, Maharashtra, India

v      ICICI Bank Limited

 

 

Facilities :

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Vehicles Loan

(Secured against Hypothecation of Vehicles)

0.817

1.268

Term Loan from Banks

(Secured against first pari-passu charge on Fixed Assets of the Company and personal guarantee of some of the Directors)

389.914

411.340

Cash Credit

 

 

From Banks

(Secured against hypothecation of Stock and Book Debts, Second pari-passu on Fixed Assets of the Company and personal guarantee of some of the Directors)

255.504

200.682

Total

646.235

613.290

 

Unsecured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

From Shareholders and Directors

82.477

17.401

Inter-corporate Loans

21.259

47.980

Total

103.736

65.381

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Chatruvedi and Chaturvedi

Chartered Accountants

Address :

215, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India

Mobile No.:

91-9870528687

Income-tax PAN of auditor or auditor's firm :

AAEPM8950F

 

 

CAPITAL STRUCTURE

 

After 30.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

16000000

Equity Shares

Rs.10/- each

Rs.160.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

13185857

Equity Shares

Rs.10/- each

Rs.131.859 millions

 

 

 

 

 

As on 30.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

16000000

Equity Shares

Rs.10/- each

Rs.160.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

12753687

Equity Shares

Rs.10/- each

Rs.127.537 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

127.537

119.594

99.731

2] Share Application Money (Pending for Allotment)

17.400

23.829

18.381

3] Reserves & Surplus

206.123

185.302

116.464

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

351.060

328.725

234.576

LOAN FUNDS

 

 

 

1] Secured Loans

646.235

613.290

380.982

2] Unsecured Loans

103.736

65.381

32.516

TOTAL BORROWING

749.971

678.671

413.498

DEFERRED TAX LIABILITIES

56.349

40.807

34.233

 

 

 

 

TOTAL

1157.380

1048.203

682.307

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

734.949

431.712

455.295

Capital work-in-progress

21.063

265.175

2.491

 

 

 

 

INVESTMENT

0.501

0.501

0.501

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

60.968

93.019

70.785

 

Sundry Debtors

319.923

215.444

162.961

 

Cash & Bank Balances

29.682

10.289

15.892

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

104.073

89.702

33.684

Total Current Assets

514.646

408.454

283.322

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

88.569

39.057

45.030

 

Other Current Liabilities

10.634

7.485

6.912

 

Provisions

14.576

11.097

7.360

Total Current Liabilities

113.779

57.639

59.302

Net Current Assets

400.867

350.815

224.020

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1157.380

1048.203

682.307

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

1080.314

850.036

742.438

 

 

Other Income

7.056

3.281

5.611

 

 

TOTAL                                     (A)

1087.370

853.317

748.049

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Increase/ Decrease in Closing Stock

5.144

(5.573)

1.838

 

 

Cost of Materials

660.194

481.278

396.230

 

 

Manufacturing Expenses

153.500

130.856

111.311

 

 

Foreign Exchange Difference

0.000

3.894

0.000

 

 

Direct Expenses

95.621

76.575

104.230

 

 

Administration & Selling Expenses

40.595

45.088

34.788

 

 

TOTAL                                     (B)

955.054

732.118

648.397

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

132.316

121.199

99.652

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

80.804

66.265

39.540

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

51.512

54.934

60.112

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

31.036

24.602

18.828

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

20.476

30.332

41.284

 

 

 

 

 

Less

TAX                                                                  (H)

15.542

6.874

19.721

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

4.934

23.458

21.563

 

 

 

 

 

Add

MAT CREDIT RELATING TO EARLIER YEARS

0.000

5.655

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

80.197

51.084

29.521

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

85.131

80.197

51.084

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

0.000

32.788

23.530

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Material

267.735

225.201

144.867

 

TOTAL IMPORTS

267.735

225.201

144.867

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.39

2.31

2.57

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

0.45

2.75

2.88

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

1.90

3.57

5.56

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.64

3.61

5.59

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.09

0.18

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.46

2.24

2.02

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

4.52

7.09

4.78

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

- Sundry Creditors for Goods

49.811

27.763

36.624

- Sundry Creditors for Capital Goods

1.010

0.000

2.905

- Sundry Creditors for Expenses

37.748

11.294

5.501

Total

88.569

39.057

45.030

 

 

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)

No

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

No

30) Major Shareholders, if available

Yes

 

OPERATIONS:

 

The company has achieved a Turnover of Rs.1087.370 millions as compared to Rs.850.035 millions in the previous year. The Directors hope that the company will do better in the next year.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR: (As on 31.03.2010)

 

v      Demand of Rs.2.155 millions for A.Y.2007-08 from Income Tax Department. The Company has filed an appeal in Department.

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U21010MH1996PLC099075

Name of the company

PREMIUM PAPER AND BOARD INDUSTRIES LIMITED

Address of the registered office or of the principal place of  business in India of the company

John Robert Compound, Sewrifort Road, Sewri (East), Mumbai – 400 015, Maharashtra, India

E-Mail: premiumpaper@gmail.com

This form is for

Creation of charge

Type of charge

Book Debts

Movable Property (not being pledge)

Particular of charge holder

The Shamrao Vithal Co-operative Bank Limited, C-Chitrapur, CHS Limited, 27 Road, T.T.S III, Bandra (West), Mumbai – 400 050, Maharashtra, India

E-Mail: kamathsn@svcbank.com

Nature of description of the instrument creating or modifying the charge

Joint Deed of Hypothecation of Fixed Assets

Date of instrument Creating the charge

31.12.2010

Amount secured by the charge

Rs.239.600 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest:

SVC-Term Loan funding of interest (45.200 millions) - PLR-2.50% p.a.

Axis-Term Loan funding of interest (20.100 millions, 6.800 millions and 52.500 millions) - BPLR + 5.25% p.a.

 

Terms of Repayment:

SVC-Term Loan funding of interest (45.200 millions)-repayable completely in 8 years

SVS-WCTL-principal amount repayable from 2012 to 2020 and interest to be paid as and when debited.

Axis-Term Loan funding of interest (20.100 millions, 6.800 millions and 52.500 millions) - repayable in 90 installments

 

Margin:

As may be decided by the banks and the company from time to time.

 

Extent and Operation of the charge:

To secure the due repayment of the facility granted together with all interest, costs, charges and expenses thereof, granted by the Banks to the Company.

 

Others:

 

Facility

 

 

SVC-Term Loan funding of interest

Rs.45.200 millions

SVC-WCTL   

Rs.115.000 millions

Axis Bank-Term Loan-funding of interest (1)

 

Rs.20.100 millions

Axis Bank-Term Loan-funding of interest (2)

Rs.6.800 millions

Axis Bank-Term Loan-funding of interest (3)

Rs.52.500 millions

Total Facilities

Rs.239.600 millions

Short particulars of the property charged

First Pari Passu Charge in favour of the Banks of all tangible movable machinery, plant machinery, fixtures, fittings other installation etc.

 

Second pari passu charge on the stock and book debts  including present and future stock of RM, Goods in Process, FG and all stores as well as present and future book debts

 

FIXED ASSETS:

 

v      Factory Land

v      Factory Building

v      Plant and Machinery

v      Furniture and Fixtures

v      Office Equipment

v      Factory Equipment

v      Computer

v      Vehicles

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.55.15

UK Pound

1

Rs.85.22

Euro

1

Rs.69.24 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

SMN

 


 

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

3

--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

 

43

 

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

-

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.