MIRA
INFORM REPORT
|
Report Date : |
29.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
POLYPLEX CORPORATION LIMITED |
|
|
|
|
Registered
Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
18.10.1984 |
|
|
|
|
Com. Reg. No.: |
20-011596 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 325.632 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25209UR1984PLC011596 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELP08882G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACP0278J |
|
|
|
|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Selling of Polyester Films, Polyester Chips and
Solar PV Modules. |
|
|
|
|
No. of Employees
: |
1380 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 12000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory 1 : |
|
|
Tel. No.: |
91-5943-250136/ 250165/ 166/ 250285/ 286 |
|
Fax No.: |
91-5943-250281/ 250069 |
|
E-Mail : |
investorrelations@polyplex.com
|
|
Website : |
|
|
|
|
|
Corporate Office : |
B-37, Sector I, Noida, District – Gautam Budh Nagar – 201 301, Uttar
Pradesh |
|
Tel. No.: |
91-120-2443716 to 19 |
|
Fax No.: |
91-120-2443723 / 24 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
Plot No. 227 MI- |
DIRECTORS
AS ON 28.09.2011
|
Name : |
Mr. Sanjiv Saraf |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S. G. Subrahmanyan |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Brij Kishore Soni |
|
Designation : |
Director |
|
|
|
|
Name : |
Air Chief Marshal O. P. Mehra (Retd.) |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjiv Chadha |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Suresh Inderchand Surana |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jitender Balakrishan |
|
Designation : |
Director |
|
Date of Appointment: |
20.07.2010 |
|
|
|
|
Name : |
Mr. Ravi Kumar |
|
Designation : |
Nominee Director – IDBI Bank Limited |
|
|
|
|
Name : |
Mr. Pranay Kothari |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
44 Years |
|
Qualification : |
B.Com (H), FCA, ACS |
|
Date of Appointment : |
01.08.1985 |
|
Other Directorships : |
Optima Consultants Private Limited – Consultant |
|
|
|
|
Name : |
Mr. Ranjit Singh |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. Ashok Kumar Gurnani |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Manish Gupta |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,802,202 |
5.63 |
|
|
60 |
-- |
|
|
60 |
-- |
|
|
1,802,262 |
5.63 |
|
|
|
|
|
|
13,158,134 |
41.14 |
|
|
50,138 |
0.16 |
|
|
50,138 |
0.16 |
|
|
13,208,272 |
41.30 |
|
Total shareholding of Promoter and Promoter Group (A) |
15,010,534 |
46.93 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2,754,692 |
8.61 |
|
|
8,360 |
0.03 |
|
|
1,433,553 |
4.48 |
|
|
4,197,605 |
13.12 |
|
|
|
|
|
|
2,380,250 |
7.44 |
|
|
|
|
|
|
5,047,051 |
15.78 |
|
|
1,554,852 |
4.86 |
|
|
3,794,308 |
11.86 |
|
|
3,461,625 |
10.82 |
|
|
2,400 |
0.01 |
|
|
2,250 |
0.01 |
|
|
3,584 |
0.01 |
|
|
324,449 |
1.01 |
|
|
12,776,461 |
39.95 |
|
Total Public shareholding (B) |
16,974,066 |
53.07 |
|
Total (A)+(B) |
31,984,600 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
31,984,600 |
100.00 |
(1) Indian
Bodies Corporate
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Polyester Films, Polyester Chips and
Solar PV Modules. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Plastic Film |
MT |
88900 |
-- |
|
Polyester Chips |
MT |
77600 |
-- |
|
|
|
|
|
|
Plastic Film |
|
|
|
|
Net Production** |
MT |
-- |
65880*** |
|
Packed Production**** |
MT |
-- |
65331 |
|
Polyester Chips |
|
|
|
|
Polyester Chips**** |
MT |
-- |
53791 |
* As certified by management.
** Includes 11,661 MT (Previous Year – 1,453 MT) of production on Job work basis.
*** Captive consumption 3,937 MT (Previous Year – 2,474 MT).
**** Includes 124 MT (Previous Year – 398 MT) purchased and reprocessed, excludes NIl (Previous Year – 524 MT) of purchased film.
***** Captive consumption of 32,615 MT (Previous Year – 15,691 MT) inclusive 3,924 MT (Previous Year – 72 MT) on Job work.
GENERAL INFORMATION
|
No. of Employees : |
1380 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Ř
State Bank of Ř IDBI Bank Limited Ř
State Bank of Ř
State Bank of Ř Axis Bank Limtied Ř The Honkong and Shanghai Banking Corporation Limited Ř
UniCredit Bank AG |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Subsidiaries : |
Ř
Polyplex ( Ř
Polyplex ( Ř
Polyplex Ř
Polyplex Europe Polyester Film Sanayi Ve
Ticaret Anonim Siketi – Ř
Polylex ( Ř
Polyplex Trading (Shenzhen) Company Limited |
|
|
|
|
Enterprises over which Key Management Personnel, their relatives and
major shareholders have significant influence : |
Ř
Beehive Systems Private Limited Ř Manupatra Information Solutions PrivateLimited Ř
Altivolus Infotech Private Limited Ř
Dalhousie Villa Private Limited Ř
Bhilangana Hydro Power Limited |
CAPITAL STRUCTURE
AFTER 28.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
34000000 |
Equity Shares |
Rs. 10/- each |
Rs. 340.000 Millions |
|
|
|
|
|
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
31984600 |
Equity Shares |
Rs. 10/- each |
Rs. 319.846
Millions |
|
|
|
|
|
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
34000000 |
Equity Shares |
Rs. 10/- each |
Rs. 340.000 Millions |
|
|
|
|
|
Issued, Subscribed
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33180300 |
Equity Shares |
Rs. 10/- each |
Rs. 331.803
Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33180300 |
Equity Shares |
Rs. 10/- each |
Rs. 331.803
Millions |
|
|
ADD: Share Forfeiture Account |
|
Rs. 5.786
Millions |
|
|
Total |
|
Rs. 325.632 Millions |
|
|
|
|
|
OUT OF ABOVE :
i) 13,50,000 Equity Shares have been issued and alloted during the year 2007-08 on preferential basis.
ii) 1,59,92,300 Equity Shares alloted as fully paid up bonus shares during the year by capitalization of Securities
Premium Account.
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 |
325.632 |
165.709 |
165.709 |
|
|
2] Share Application Money |
0.000 |
0.000 |
25.080 |
|
|
3] Reserves & Surplus |
2857.005 |
1623.708 |
1147.054 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3182.637 |
1789.417 |
1337.843 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4212.751 |
4480.895 |
2014.204 |
|
|
2] Unsecured Loans |
0.000 |
93.909 |
104.576 |
|
|
TOTAL BORROWING |
4212.751 |
4574.804 |
2118.780 |
|
|
DEFERRED TAX LIABILITIES |
428.150 |
295.079 |
152.714 |
|
|
|
|
|
|
|
|
TOTAL |
7823.538 |
6659.300 |
3609.337 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5794.362 |
5796.644 |
1140.560 |
|
|
Capital work-in-progress |
263.627 |
195.131 |
2073.552 |
|
|
|
|
|
|
|
|
INVESTMENT |
241.585 |
200.585 |
224.018 |
|
|
Foreign Currency Monetary Item |
0.000 |
1.811 |
25.299 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1382.326
|
601.324 |
255.993 |
|
|
Sundry Debtors |
765.619
|
220.339 |
144.746 |
|
|
Cash & Bank Balances |
75.827
|
104.456 |
69.882 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1313.282
|
639.575 |
387.601 |
|
Total
Current Assets |
3537.054
|
1565.694 |
858.222 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
341.924
|
163.644 |
163.644 |
|
|
Other Current Liabilities |
561.842
|
243.167 |
243.167 |
|
|
Provisions |
1109.324
|
305.503 |
305.503 |
|
Total
Current Liabilities |
2013.090
|
1100.565 |
712.314 |
|
|
Net Current Assets |
1523.964
|
465.129 |
145.908 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7823.538 |
6659.300 |
3609.337 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9435.147 |
2415.522 |
2292.407 |
|
|
|
Other Income |
425.123 |
786.994 |
123.459 |
|
|
|
TOTAL (A) |
9860.270 |
3202.516 |
2415.866 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
5889.524 |
1919.813 |
1492.550 |
|
|
|
Operating and other Expenses |
1208.387 |
446.957 |
517.706 |
|
|
|
Stock Accretion/ (Decretion) |
(421.826) |
(125.013) |
[15.182] |
|
|
|
Exceptional Items |
0.000 |
[0.403] |
1995.074 |
|
|
|
TOTAL (B) |
6676.085 |
2241.354 |
1995.074 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3184.185 |
961.162 |
420.792 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
350.049 |
84.894 |
65.063 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2834.136 |
876.268 |
355.729 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
322.142 |
103.669 |
84.538 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2511.994 |
772.599 |
271.191 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
746.670 |
172.835 |
99.938 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1765.324 |
599.764 |
171.253 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
961.665 |
572.088 |
549.006 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
178.000 |
61.000 |
17.200 |
|
|
|
Interim Dividend |
95.954 |
0.000 |
0.000 |
|
|
|
Corporate Dividend Tax- Interim Dividend |
15.937 |
0.000 |
0.000 |
|
|
|
Proposed Dividend |
223.892 |
127.938 |
111.946 |
|
|
|
Corporate Dividend Tax- Proposed Dividend |
36.321 |
21.249 |
19.025 |
|
|
BALANCE CARRIED
TO THE B/S |
2176.885 |
961.665 |
572.088 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3769.465 |
561.440 |
561.789 |
|
|
TOTAL EARNINGS |
3769.465 |
561.440 |
561.789 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
972.723 |
561.868 |
230.777 |
|
|
|
Stores & Spares |
152.397 |
22.338 |
26.896 |
|
|
|
Capital Goods |
6.367 |
3064.094 |
816.600 |
|
|
|
Finished Goods |
0.000 |
85.091 |
0.000 |
|
|
TOTAL IMPORTS |
1131.487 |
3733.391 |
1074.273 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
55.19 |
18.75 |
10.71 |
|
|
|
Diluted |
55.19 |
18.67 |
9.71 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
2617.20 |
2427.60 |
1931.20 |
|
Total Expenditure |
2169.40 |
2239.30 |
1771.50 |
|
PBIDT (Excl
OI) |
447.80 |
188.30 |
159.70 |
|
Other Income |
16.70 |
348.50 |
34.90 |
|
Operating
Profit |
464.50 |
536.80 |
194.60 |
|
Interest |
66.60 |
71.40 |
64.90 |
|
Exceptional
Items |
0.00 |
0.00 |
0.00 |
|
PBDT |
397.90 |
465.40 |
129.70 |
|
Depreciation |
82.10 |
86.30 |
88.10 |
|
Profit
Before Tax |
315.80 |
379.10 |
41.60 |
|
Tax |
19.10 |
55.10 |
0.80 |
|
Reported PAT |
296.70 |
324.00 |
40.80 |
|
Extraordinary Items |
0.00 |
0.00 |
0.00 |
|
Prior Period Expenses |
0.00 |
0.00 |
0.00 |
|
Other Adjustments |
0.00 |
0.00 |
0.00 |
|
Net Profit |
296.70 |
324.00 |
40.80 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
17.90
|
18.73 |
7.09 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
26.62
|
31.98 |
11.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
26.92
|
10.49 |
13.57 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.79
|
0.43 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.96
|
3.17 |
2.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76
|
1.42 |
1.20 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constitution 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 |
Yes |
|
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 |
Yes |
|
17. Major suppliers |
No |
|
18. Major customers |
No |
|
19. Payments terms |
No |
|
20. Export / Import details |
No |
|
21. Market information |
-- |
|
22. Litigations that the firm / promoter involved |
-- |
|
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 |
Yes |
HISTORY:
Promoted by Sanjiv Saraf in association with Mahalaxi
Trading and Investment Company -- a non-resident corporate body -- Polyplex
Corporation currently operates a polyester film plant (cap. : 6000 tpa) at
Khatima, Nainital district, UP. The plant was commissioned in 1988 with a
capital outlay of about Rs.400 millions. The company's product is
biaxially-oriented polyester film, a thermoplastic film used in a range of
products including audio, video, computer tapes, flexible packaging, metallised
yarn, stamping foils, graphic arts, X-rays, electrical insulations, sun-control
films, capacitors and other applications. With good prospects for the polyester
film industry, the company expanded its capacity 14,830 tpa at a cost of around
Rs.700 millions. The capacity expansion was funded by a private placement of
shares (in Nov.'94 it made a private placement of shares at a premium of
Rs.130) and internal accruals. Polyplex has imported equipment from leading
international suppliers such as Lindauer Dorner, Barmag and Kampf, Germany;
Nishimura, Japan; Nucleometre FAG, France; and Extrusion of Dies, US. This,
coupled with the technical skills of its operating personnel and emphasis on
quality control, has enabled it to produce films which enjoy a premium position
not only in
YEAR IN RETROSPECT
During the year, Consolidated Sales and Operational Income has increased by 98% over previous year, riding on the back of exceptional market conditions reflected in higher sales prices besides additional sales volumes contributed from new production lines at various locations.
Consolidated Net Income (before taxes, exceptional items and minority interest) rose five-fold. The Net Income (post minority) of Rs 1,0550.000 Millions includes a one-time exceptional gain of Rs 6370.000 Millions on account of part stake sale in a subsidiary during the year.
With a much stronger financial position, the company is implementing
several new projects across its global footprint besides adding
More details on operations and a view on the outlook for the current year are given in the ‘Management Discussion and Analysis Report’, which forms part of the Annual Report.
SUBSIDIARY COMPANIES
A large proportion of the Company’s consolidated revenues
and earnings pertain to the investments in subsidiaries outside
Recently, following three companies viz. PAR LLC, Polyplex
America Holdings Inc. and Polyplex USA LLC, have been incorporated in the
In terms of General Circular No. 2/2011 dated February 8, 2011, issued by the Ministry of Corporate Affairs, Government of India, Companies have been granted general exemption from the provisions of Section 212 of the Companies Act, 1956 from attaching accounts of its subsidiaries, subject to fulfilment of conditions mentioned therein. In terms of the said circular, financial data is given in the ‘Details of the Subsidiary Companies’.
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
In this document, the terms ‘Company’ and ‘Polyplex’ refer to the consolidated
operations of Polyplex Corporation Limited Polyplex’s business is focused on
producing high performance plastic films (PET, BOPP and CPP) which are mainly
used in the flexible packaging industry. Polyplex is one of the leading
integrated producers of Polyester (PET) films in the world. In the recent past,
the Company also has ventured into downstream businesses like Silicone Coating
and Extrusion Coating. As part of its concentric diversification strategy, the
Company has also decided to enter into the Thick PET film business as well as
install a Blown PP film in order to broaden the product offering on its
silicone coated films business.
PET film is made from Polyester resin (chips), which in turn is produced
from Purified Terephthalic Acid (PTA) and Mono- Ethylene Glycol (MEG). The
Company produces its own resin.
The Company largely produces PET films for application in Packaging,
Electrical and other Industrial segments like hot stamping foils, thermal
lamination, cable wrap, release films, air conditioning ducts etc. Currently,
Company produces only thin PET films, which account for three-quarters of the
total global demand for PET Films, and does not participate in some of the
other smaller segments like imaging, magnetic media and optical films.
Packaging being the dominant business segment, the Company would now be
in a position to offer other substrates used in the flexible packaging
industry. BOPP and CPP films are Polypropylene (PP) based films, which are
pre-dominantly used in packaging besides certain industrial applications like
tapes, labels, thermal lamination and textiles. Flexible packaging companies
supply their laminates to consumer product companies for packaging of a diverse
range of products like food products, household goods, personal care products,
etc.
The downstream businesses of Silicone Coating and Extrusion Coating are
niche businesses producing release films and thermal laminates respectively.
GLOBAL OPERATIONS
Polyplex has attained a leadership position in the thin PET films
business with manufacturing facilities in
With a view to further expand its global manufacturing footprint into North
America, Polyplex has recently incorporated two new entities in
Further, PAPL has invested in PAR LLC,
PET FILM BUSINESS
The growth in packaging has over the years shifted the production and
usage patterns of PET films. The Company’s relevant segments of Packaging, Industrial
and Electrical constitute 98% of the total demand and the traditional high-end
technology segments like magnetic media and imaging segments are reduced to
only 2% of the total consumption due to technology transformation. Polyplex
currently produces only thin PET films, which represents three-fourth of the
overall global PET film demand. The Company has now decided to foray into the
Thick PET film segment by putting up a manufacturing line in
Better packaging not only improves the shelf life of the products by
providing protection against oxidation and aroma loss but is also essential for
improving product appeal in a highly competitive consumer goods industry.
Flexible packaging also plays a key role in source reduction on the principle
of ‘use less waste in the first place’ which has ensured higher-than-GDP growth
in the flexible packaging industry across the globe. PET film, being a
higher-end substrate within packaging, has grown more rapidly than other
substrates, growing at an average of about 8-10% per annum. Demand in packaging
is quite resilient as it relates to consumption of food products and consumer
staples which are to a large extent non-discretionary in nature. This had
moderated the impact of the global economic recessionary environment on the
industry in 2008, as compared with some of the other end-use segments like
industrial and electrical which had been impacted more and had witnessed a
contraction in demand in 2008. The revival of demand growth in 2009 and 2010
has also been faster in the packaging application as compared to other
applications of thin PET films.
An increase in the purchasing power in the developing countries has
brought with it a large rise in the per capita consumption of packaging
material. As a result of this, Asia (excluding
A similar trend is also evident on the supply-side with most of the new
capacities being added in low-cost developing countries. Most of the new
capacity is also focused on the packaging segment, with an emphasis on high
productivity and low operating costs. This has adversely impacted the traditionally
large producers of PET film operating with high cost structures, who have now
been forced to concentrate in the emerging niche technologies in PET films like
films for LCDs, solar panels, touch screens and specific high-end applications
within packaging. While trade defense measures like antidumping and
countervailing duties are on the rise in an increasingly competitive market
environment, they are unable to address the inherent problems of unproductive
assets operating in the developed countries producing regular films. With the
ongoing gradual withdrawal of these large producers in the developed markets
for commodity film grades, it has created opportunities for cost effective
producers like Polyplex to set up capacities in mature regions in order to make
up for the vacuum.
During the year 2010, the Thin PET industry witnessed a Demand-supply
imbalance scenario due to the following main reasons:
Market
Developments
Ř
Demand continued to grow despite the Economic
Crisis in 2008-09.
Ř
There had been inadequate / delayed capacity
additions.
Structural
changes:
Ř
Closure of some old uneconomic lines.
Ř
Diversion of capacity from packaging to industrial
segment as well as conversion of thin film lines into intermediate and thick
films for new applications.
New applications
Ř
Optical industry /Photovoltaic (PV).
The above factors ensured that the demand for thin PET film globally in
the year 2010 remained more than the supplies, thereby increasing the selling
prices to historic highs. This in turn significantly improved the operating
margins of most of the manufacturers in this industry. These exceptionally high
margins have attracted a lot of new investments with most of these planned
expansions expected to come online between 2011 and 2013.
They expect global PET film growth rates to range between 7-10% in the
years 2011-15, with demand in
BOPP AND CPP FILMS
BUSINESS
The BOPP and CPP businesses are also witnessing similar dynamics. Growth
in Asia especially
SILICONE COATING
AND EXTRUSION COATING BUSINESSES
The Silicone coating business produces polyester release liner, which is
used for carrying adhesive labels until such adhesive labels are removed from
the release liner and are applied to the final surface. Other applications of
siliconized polyester release liner include release liner for adhesive tapes,
cast polymer materials, electronic applications, roofing and other industrial
uses. At present the Company has one coater at its plant in
The Extrusion coating business involves the combination of PET/BOPP film
with an extruded adhesive layer to produce a thermal lamination film. Thermal
lamination film is used for the application of plastic film to the surface of
another item like paper in order to improve the durability and give it an
aesthetic appeal. The main uses of this are in teaching aids, maps,
certificates, posters, menu cards, book covers, carton board boxes and food
packaging. The Company has one extrusion coater located in
INDUSTRY IN
The Thin PET film market in
For the coming years, we expect an annualized growth rate of 12-15% YoY.
The total capacity in
The BOPP market in
Capacity additions which took place in FY 2010-11 were expected to
adversely affect the margins but robust demand (some of it being conversion
from high priced PET film) nullified the impact. With a few more lines expected
to start up in 2011 and 2012, additional supplies could result in a contraction
of the margins in domestic market in the short to medium term. Exports of
converted product have increased in recent times and are expected to increase
the demand of base film consumption in domestic market.
STRATEGY
Polyplex seeks to maximize long-term returns to the shareholders by
following a differentiated approach and proactively responding to anticipated changes
in the business and environment. The key elements of this strategy have been:
Ř
Manufacturing or distribution presence in the key
regional markets for an efficient delivery model. Setting up of a new PET film
line in
Ř
Integrated manufacturing facilities with high
productivity assets to ensure cost competitiveness.
Ř
Increasing the proportion of specialty product
revenues.
Ř
Accelerate investment in niche downstream products
and related films to exploit synergies in operations, broad base product
portfolio and provide a platform for further growth. Setting up of the
extrusion coating project, the CPP line & Silicone Coating line in
Ř
Strong global delivery capabilities with a
combination of near-shore and on-shore production base and efficient onward
distribution network. Acquisition of the distribution company in the
Ř
Setting up of the Trading Company in
Ř
Increased emphasis on upgrading technical service
and R&D capabilities.
Ř
Consolidate market position in key geographic
locations before the next phase of growth.
Ř
Continuous improvements in all aspects of the
operations.
The results of this strategy are exhibited in the successful growth
achieved by the Company over the years. Despite the challenging environment,
the Company continues to identify attractive avenues for growth and is
well-poised to create more long-term value for the shareholders.
PERFORMANCE DURING
THE YEAR
All discussion here is in the context of the consolidated performance of
the Company.
SALES AND
OPERATIONS:
The Company has a large international presence with active sales in all
major regional markets / countries across the world. The Company has a large
base of about 1150 end customers and low customer concentration. Its top 10
customer groups contributed 32% of total revenues in 2010-11. 80% of the
Company’s revenues were from PET films in 2010-11. Of the total sales, 71% are
sold directly to the end-users.
FUTURE OUTLOOK AND
PLANNED INVESTMENTS
The improved market sentiments in 2010 have already given way to
increase apprehension on the likely excess supply in the mainstay PET/OPP films
business. While demand growth remains intact and robust, lumpy and high
capacity additions in anticipation of future growth does create periods of high
competition with the resultant moderation in margins.
The Company remains confident that with its strengths and superior
performance it should be able to grow profitably and withstand variability in
industry environment, especially so as its conscious strategy of diversifying
its product portfolio and higher proportion of value added products have
started demonstrating the desired results. The Company is well poised to
capture growth opportunities in all its business segments within the confines
of business prudence.
CONTINGENT LIABILITIES:
Contingent Liabilities not provided for, in respect of:
a) Disputed matters under litigation:
(Rs. in Millions)
|
Particulars |
Current
Year |
Previous
Year |
|
Sales Tax and Entry Tax |
35.207 |
28.390 |
|
Excise Duty and Customs Duty |
2.295 |
2.295 |
|
Income Tax |
7.354 |
7.354 |
|
Others |
2.071 |
4.121 |
b) Bills discounted with banks – Rs.33.852 Millions (Previous Year –
Rs.1.936 Millions).
c) (i) Custom duty saved amounting to Rs.4,61.385 Millions (Previous
Year – Rs.6,42.939 Millions) in respect of import of machinery under Export
Promotion Capital Goods (EPCG) Scheme against which export obligation is
pending to be fulfilled.
(ii) Import duty saved amounting to Rs.Nil (Previous Year – Rs.9.768
Millions) in respect of goods imported under Advance License against which
export obligation is pending to be fulfilled.
d) Guarantees given to the banks and others - Rs.34.030 Millions
(Previous Year – Rs.1.750 Millions), including Rs.0.225 Millions (Previous Year
– Rs.1.750 Millions) on behalf of other bodies corporate.
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED
DECEMBER 31, 2011
(` in Millions except per share
data)
|
Particular |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2011 (Unaudited) |
31.09.2011 (Unaudited) |
31.12.2011 (Unaudited) |
|
Income from Operations |
|
|
|
|
1. a)Net Sales/Income from Operations |
1884.100 |
2422.600 |
6922.900 |
|
b)Other
Operating Income |
47.100 |
5.000 |
53.100 |
|
Total Income from
operations (net) |
1931.200 |
2427.600 |
6976.000 |
|
|
|
|
|
|
2. Expenses |
|
|
|
|
(a) Decrease/ (Increase) in stock |
(149.100) |
111.000 |
135.800 |
|
(b) Consumption of Raw Material |
1416.500 |
1569.200 |
4463.700 |
|
(c) Purchase of traded goods |
0.000 |
0.000 |
2.700 |
|
(d) Power and Fuel |
165.100 |
169.500 |
493.500 |
|
(e) Staff cost |
64.800 |
102.600 |
263.000 |
|
(f) Depreciation |
88.100 |
86.300 |
256.500 |
|
(g) Other Expenditure |
274.200 |
287.000 |
821.600 |
|
Total Expenses |
1859.600 |
2325.600 |
6436.800 |
|
3. Profit from Operations
before Other Income, Finance costs and Exceptional item |
71.600 |
102.000 |
539.200 |
|
4. Other Income |
34.900 |
348.500 |
400.100 |
|
5. Profit/ Loss before
Finance costs and Exceptional item |
106.500 |
450.500 |
939.300 |
|
6. Finance costs |
64.900 |
71.400 |
202.800 |
|
7. Profit/ Loss after
Finance costs but Exceptional item |
41.600 |
379.100 |
736.500 |
|
8.
Exceptional item |
0.000 |
0.000 |
0.000 |
|
9. Profit/ Loss from Ordinary Activities
before tax |
41.600 |
379.100 |
736.500 |
|
10. Tax
Expenses |
0.800 |
55.100 |
75.100 |
|
11. Net Profit/ Loss from Ordinary
Activities after tax |
40.800 |
324.000 |
661.400 |
|
12.
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
13. Net Profit for the period |
40.800 |
324.000 |
661.400 |
|
14. Less: Minority Interest |
-- |
-- |
-- |
|
15. Profit after Tax and Minority Interest |
40.800 |
324.000 |
661.400 |
|
16. Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
319.800 |
319.800 |
319.800 |
|
17. Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
-- |
-- |
|
18. Earnings
per share (before and after extraordinary items) (of Rs. 10/-
each) (not annualized) -
Basic |
1.27 |
10.12 |
20.68 |
|
- Diluted |
1.27 |
10.12 |
20.68 |
|
|
|
|
|
|
19. Public
shareholding |
|
|
|
|
Number of
Shares |
16974066 |
16974066 |
16974066 |
|
Percentage of Shareholding |
53.07 |
53.07 |
53.07 |
|
20. Promoters and promoter group
shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of
Shares |
15010534 |
15010534 |
15010534 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter
group) |
100.00 |
100.00 |
100.00 |
|
- Percentage
of Shares (as a % of the
total share capital of the company) |
46.93 |
46.93 |
46.93 |
Notes: -
Standalone Results
1) Figures have been regrouped wherever necessary.
2) According to Accounting Standard (AS-17) on
“Segment Reporting” the company has only one business segment i.e. Plastic
Films.
3) ‘Other Operating Income’ relating to
periods of current year comprises primarily of provisions no longer required
and hence written back.
4) In continuation with existing accounting
policy, exchange gain/ loss on derivatives relating to acquisition of
depreciable fixed assets is included in carrying cost of assets.
5) `Other Income' include dividend income received
from subsidiaries-Rs. Nil for the current quarter (Rs, 116.200 millions for the
corresponding quarter of previous year), Rs. 345.700 millions for nine months
ended December 31, 2011 (Rs. 353.700 millions for the corresponding period of
previous year) and Rs. 353.700 Millions for the year ended March 31, 2011.
6) Production and Sales were adversely
affected during the quarter due to:
(a) planned shutdown of PET Chips and PET Film
plant at Bajpur, and
(b)
shut down of PET Film Plant (Line-1) at Khatima for expansion and
upgradation to Thick/ Specialties film line, which commenced production from
December 29, 2011,
7) Details of no. of investor complaints for
the quarter ended December 31, 2011 Beginning: 1, Received: 3, Disposed of: 3
and Pending: 1 (Since resolved).
8) These results were reviewed by the Audit Committee and have been
approved by the Board in its meeting held on February 14, 2012.
9) The Limited review under clause 41 of Listing Agreement has been
completed by the Statutory Auditors.
FIXED ASSETS:
Tangible Assets
Ř
Ř
Ř
Buildings
Ř
Plant and Machinery
Ř
Electrical Installation
Ř
Vehicles
Ř
Office Equipments
Ř
Furniture and Fixtures
Intangible Assets
Ř
Software
AS PER WEBSITE DETAILS
INTRODUCTION:
Polyplex is the world’s 4th largest manufacturer of thin
polyester Film. With it’s headquarter located in Nodia, in the State of Uttar
Pardesh, India. The Company has three manufacturing facility – one located at
Khatima, Distt. Udham Singh Nagar in the state of
Polyplex has established itself as one of the most
profitable producers of PET Film by way of cost efficient operations resulting
from high productivity and low overheads. Its products have gained wide
acceptance in the global markets, such as
The Company has a dynamic workforce of more than 347 employees in
With its planned expansion in
HISTORY
Polyplex was incorporated in 1984 and commenced commercial operations with its
first Film line of 4000 TPA (Ton Per Annum) in May 1988, which was subsequently
increased to 6000 TPA. With its operations stabilizing, by the mid 90’s,
Polyplex was able to emerge as one of the most profitable producers of
Polyester Film in
Polyplex undertook an expansion in film capacity by adding another film line of
9000 TPA in March 1996, which was subsequently increased to 14000 TPA. It also
integrated backward into the manufacture of Polyester Chips meant for captive
consumption, and commenced production in March 1997.
While mirroring industry trends, the Company’s financial performance has been
among the best in the industry resulting from the Company’s focus on Polyester
Films, its strategic understanding of the PET Film market and operational
efficiencies. Initiatives such as TPM (Total Productive Maintenance), BPR
(Business Process Reengineering) and implementation of ERP (Enterprise Resource
Planning) have lead to sustained improvements in productivity. A turnaround in
market conditions since mid-2000 has seen a significant improvement in the
profitability of their operations, thus creating conditions for further growth.
The Company also commissioned a Metalliser in
Following from the Company’s strategic objective of being a PET Film
manufacturer of Global significance and “Near shoring” to main
markets/customers, Polyplex expanded its film capacity further by investing in
a new film line of 15000 MT (Metric Ton) in Thailand through its subsidiary
Polyplex (Thailand) Public Company Limited (PTL/ Polyplex Thailand) to cater to
the high growth markets of SEA. The new line was commissioned in April 2003
within the budgeted costs and ahead of time. Following this, Polyplex
Production in both the
During 2004-05 PTL successfully commissioned two chips plants - a batch process
plant with a capacity of 7000 TPA in September 2004 and a continuous process
plant with a capacity of 45500 TPA in February 2005. With this, Polyplex
To further the twin strategic objective of “Global Player” and “Near shoring”
in European and Mediterranean markets the Company took steps to implement a
Polyester film plant in
Production in Polyplex Europa (PE) has been more than rated capacity.
Consequently, capacity of previous PET Film line has been restated at 29000 MT.
Further, a new Pet Film line has been commissioned in May 2008, having
production capacity of 29,000 TPA. This line is state of the art line and is
capable of producing various speciality products. Now, the total production
capacity at
The capacity of Chips plant has also been increased by de-bottlenecking to
57,600 TPA to match the film capacity. However, only Bright chips are made at
Demand of PET film in
To broaden its product portfolio and capture larger part of the value chain, in
March 2007, Company set up an offline Silicone Coater Plant (160 Mn sqm) for
siliconising PET films in India. They have established their presence in the
Shingles market in
To impart greater focus on value added products, the company’s subsidiary in
Thialand, PTL, has installed an Extrusion coating line with an annual capacity
of 7800 TPA (150 Mn sqm) at an investment of USD 8 Million and the project has
started commercial production from April, 2008.
These investments have strengthened the Company’s competitive position
in the PET Film business ensuring continued cost leadership. This together with
the current demand-supply situation would enable Polyplex to provide an
attractive value proposition to its customers and investors.
The Company is going ahead with its plans of expansion and setting up a new
state of the art 8.70 meter wide PET Film line (31,000 TPA) using direct melt
together with a continuous process chips plant (57,600 TPA) and a Metallizer
(7,000 TPA) at Bajpur, near its existing facilities, in Uttarakhand in India.
The project has been enlarged to include a 8.7 meter wide BOPP line along with
a 2.85 meter wide Metallizer. The project is expected to start commercial production
by mid 2009 with an investment of around USD 112 million. The project would
enjoy excise and income tax benefits for a period of 10 years. These plants
would cater to the converters/customers in Uttarakhand.
Further, as a measure of improving its product offering to its customers, the
Company’s subsidiary in
MILESTONES
1984 Polyplex
Corporation Limited is incorporated.
1987 Became
a listed company in
1988 Commences
commercial operations with its first Film line of 4000 TPA.
1996 Polyplex
undertakes expansion in Film capacity by adding a new Film line of 9000 TPA.
1997 Commences
integrated backward manufacturing of Polyester Chips meant for captive
consumption.
2002 Polyplex
commissions a Metalliser in
2003 Polyplex
(
2004 PTL’s
Batch Polycondensation PET chips plant commences in September.
2004 PTL
successfully floated an IPO and is listed on Stock Exchange of Thailand.
2005 PTL’s
Continuous Process PET chips plant commences in February.
2005 PTL
commissions a Metallizer in
2005 PE
commences operations in
2006 PE
commissions a Metallizer in
2006 PTL
invested USD 1 Mn in Polyplex
2006 PCL
sets up an offline Silicone Coating Plant .
2008 PTL
commences a Metallizer in
2008 PTL
commences an Extrusion Coating line with a capacity of 150 million square meter
in April.
2008 PE
commences a PET Film with a capacity of 29000 TPA in May.
2008 PE
commences a Metallizer with a capacity of 6000 TPA in May.
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. 55.26 |
|
|
1 |
Rs. 86.80 |
|
Euro |
1 |
Rs. 69.63 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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.