MIRA
INFORM REPORT
|
Report Date : |
16.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
NAHAR POLY FILMS LIMITED (w.e.f. 15.06.2011) |
|
|
|
|
Formerly Known
As : |
Nahar Investments and Holding Limited |
|
|
|
|
Registered
Office : |
376, Industrial Area A, Ludhiana – 141003, Punjab |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
11.11.1988 |
|
|
|
|
Com. Reg. No.: |
16-008820 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 125.777 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17115PB1988PLC008820 |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Polyfilms |
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|
|
|
No. of Employees
: |
178 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5700000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
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Payment Behaviour : |
Slow but correct |
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|
|
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Litigation : |
Clear |
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|
|
Comments : |
Subject is a part of the Ludhiana based “Nahar Group of Industries”.
It is an established company having a satisfactory track record. There appears loss recorded by the company during 2013. The rating takes into consideration the modest track record of NPFL’s
promoters in the Bi-axially-oriented polypropylene business, its small scale
of operations, its exposure to the cyclical and commoditized nature of the
packaging industry, and its mediocre financial risk profile. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces
a 119 year old registration. The Securities and Exchange Board of India has
approved the trading of currency futures on the Bombay Stock Exchange. The
exchange plans to launch the currency futures platform with advanced trading
technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: BBB- |
|
Rating Explanation |
Have moderate degree of safety and carry
moderate credit risk. |
|
Date |
27.11.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: A3 |
|
Rating Explanation |
Have moderate degree of safety and carry
highest credit risk. |
|
Date |
27.11.2013 |
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 : |
376, Industrial Area A, Ludhiana – 141003, Punjab, India |
|
Tel. No.: |
91-161-2600701/705 |
|
Fax No.: |
91-161-2222942/2601956 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Factory : |
Village Simrai, Mandideep Dist. Raisen, Madhya
Pradesh – 464993, India |
|
Tel. No.: |
91-7480-295447 |
|
Fax No.: |
91-7480-233090 |
|
|
|
|
Corporate Office : |
Nahar Tower 376 Industrial Area-A, Ludhiana – 141003, Punjab, India |
|
Tel. No.: |
91-161-2600701/705 |
|
Fax No.: |
91-161-2222942/2601956 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Jawahar Lal Oswal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Dinesh Oswal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kamal Oswal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dinesh Gogna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Komal Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. (Mrs.) H. K.Bal |
|
Designation : |
Director |
|
|
|
|
Name : |
Sh. Satish Kumar Sharma |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Kanwar Sain Maini |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Suresh Kumar Singla |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Yash Paul Sachdeva |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Amrik Singh Sohi |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2013
|
Category of
Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
|
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
136773 |
0.56 |
|
|
16895174 |
68.71 |
|
|
17031947 |
69.27 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
17031947 |
69.27 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
2464 |
0.01 |
|
|
860 |
0.00 |
|
|
24000 |
0.10 |
|
|
27324 |
0.11 |
|
|
|
|
|
|
657704 |
2.67 |
|
|
|
|
|
|
6263083 |
25.47 |
|
|
558246 |
2.27 |
|
|
49687 |
0.20 |
|
|
37765 |
0.15 |
|
|
11782 |
0.05 |
|
|
140 |
0.00 |
|
|
7528720 |
30.62 |
|
Total Public
shareholding (B) |
7556044 |
30.73 |
|
Total (A)+(B) |
24587991 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
24587991 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Polyfilms |
GENERAL INFORMATION
|
No. of Employees : |
178 (Approximately) |
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Bankers : |
·
Oriental Bank
of Commerce ·
Bank of
Maharashtra |
||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Gupta Vigg and Company Chartered Accountants |
|
Address : |
101-Kismat Complex, G.T. Road, Miller Ganj, Ludhiana-141 003, Punjab, India |
|
|
|
|
Associates : |
·
Nahar Spinning Mills Limited ·
Nahar Capital and Financial Services Limited ·
Nahar Industrial Enterprises Limited ·
Oswal Woollen Mills Limited ·
Vanaik Spinning Mills Limited ·
Abhilash Growth Fund (Private) Limited ·
Atam Vallabh Financers Limited ·
Bermuda Insurance Brokers Pvt. Limited ·
Kovalam Investments and Trading Company Limited ·
Ludhiana Holdings Limited ·
Monica Growth Fund (Private) Limited ·
Nagdevi Trading and Investment Co. Limited ·
Nahar Growth Fund (Private) Limited ·
Neha Credit and Investment (Private) Limited ·
Ogden Trading and Investment Company (Private)
Limited ·
Ruchika Growth Fund (Private) Limited ·
Sankeshwar Holding Company Limited ·
Vanaik Investors Limited ·
Vardhman Investments Limited ·
J.L. Growth Fund Limited ·
Jawahar Lal and Sons · Monte Carlo Fashions Limited · Hug Foods (Private) Limited · Samira and Shayana Company Limited ·
Sidhant and Mannat Company Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90000000 |
Equity Shares |
Rs.5/- each |
Rs.450.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
24587991 |
Equity Shares |
Rs.5/- each |
Rs.122.940 Million |
|
|
Share Forefited Account |
|
Rs. 2.837 Million |
|
|
Total |
|
Rs.125.777 Million |
Reconciliation of Shares
Outstanding at the Beginning and at the end of the Reporting Period
|
Particulars |
Equity Shares |
|
|
|
Number |
Rs. In Million |
|
Shares outstanding at the beginning of the year |
24587991 |
122.939 |
|
Shares Issued during the year |
|
|
|
Shares bought back during the year |
|
|
|
Shares outstanding at the end of the year |
24587991 |
122.939 |
Name of Shareholders
holding more than 5% shares of the company
|
Name of Shareholder |
Current Year No. of Shares held % of Holding |
Previous Year |
|
|
No. of Shares held |
% of Holding |
||
|
M/s Nahar Capital & Financial |
12087671 49.161 |
12087671 |
49.161 |
|
Services Limited |
|
|
|
|
M/s Nahar Industrial Enterprises Limited |
1264720 5.144 |
1264720 |
5.144 |
a) The company has not issued any shares in persuance to contract(s) without payment being received in cash during five year immediately preceding the date as at which the Balance Sheet is prepared.
b) The company has not issued any fully paid up Bonus Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.
c) The company has not bought back any Shares during five year immediately preceding the date as at which the
Balance Sheet is prepared.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
125.777 |
125.777 |
|
(b) Reserves & Surplus |
|
1315.302 |
1382.061 |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
|
1441.079 |
1507.838 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
|
783.229 |
957.282 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
29.758 |
|
(c) Other long
term liabilities |
|
0.000 |
0.000 |
|
(d) long-term
provisions |
|
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
|
783.229 |
987.040 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
342.799 |
79.343 |
|
(b)
Trade payables |
|
42.879 |
21.587 |
|
(c)
Other current liabilities |
|
212.884 |
222.060 |
|
(d) Short-term
provisions |
|
0.000 |
16.413 |
|
Total Current
Liabilities (4) |
|
598.562 |
339.403 |
|
|
|
|
|
|
TOTAL |
|
2822.870 |
2834.281 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
1225.965 |
1366.731 |
|
(ii)
Intangible Assets |
|
0.166 |
0.250 |
|
(iii)
Capital work-in-progress |
|
0.125 |
1.693 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
964.853 |
951.421 |
|
(c) Deferred tax
assets (net) |
|
8.271 |
0.000 |
|
(d) Long-term Loan and Advances |
|
3.088 |
0.427 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current
Assets |
|
2202.468 |
2320.522 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current
investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
187.581 |
84.655 |
|
(c)
Trade receivables |
|
266.579 |
235.538 |
|
(d) Cash
and cash equivalents |
|
9.738 |
12.580 |
|
(e)
Short-term loans and advances |
|
151.375 |
172.233 |
|
(f) Other
current assets |
|
5.129 |
8.753 |
|
Total
Current Assets |
|
620.402 |
513.759 |
|
|
|
|
|
|
TOTAL |
|
2822.870 |
2834.281 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
125.777 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
1326.307 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
1452.084 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1257.951 |
|
|
2] Unsecured Loans |
|
|
1.500 |
|
|
TOTAL BORROWING |
|
|
1259.451 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
2711.535 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
1486.222 |
|
|
Capital work-in-progress |
|
|
25.393 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
951.422 |
|
|
DEFERREX TAX ASSETS |
|
|
8.741 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
147.498 |
|
|
Trade receivable |
|
|
162.877 |
|
|
Cash & Bank Balances |
|
|
10.221 |
|
|
Other Current Assets |
|
|
193.110 |
|
|
Loans & Advances |
|
|
9.170 |
|
Total
Current Assets |
|
|
522.876 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
44.928 |
|
|
Other Current Liabilities |
|
|
228.190 |
|
|
Provisions |
|
|
10.001 |
|
Total
Current Liabilities |
|
|
283.119 |
|
|
Net Current Assets |
|
|
239.757 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
2711.535 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2176.007 |
2457.481 |
1522.019 |
|
|
|
Other Income |
17.147 |
26.671 |
46.228 |
|
|
|
TOTAL (A) |
2193.154 |
2484.152 |
1568.247 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
1667.570 |
1574.830 |
1055.575 |
|
|
|
Changes in inventories of finished goods work-in-progress and
stock-in-trade |
(83.457) |
20.427 |
(61.257) |
|
|
|
Employee benefit Expenses |
48.667 |
45.050 |
35.715 |
|
|
|
Others expenses |
362.054 |
386.622 |
234.826 |
|
|
|
TOTAL (B) |
1994.834 |
2026.929 |
1264.859 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
198.320 |
457.223 |
303.388 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
157.325 |
181.792 |
149.311 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
40.995 |
275.431 |
154.077 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
145.895 |
145.773 |
124.823 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(104.900) |
129.658 |
29.254 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(38.029) |
59.625 |
(7.240) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(66.871) |
70.033 |
36.494 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
254.416 |
218.211 |
55.831 |
|
|
TOTAL EARNINGS |
254.416 |
218.211 |
55.831 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
147.214 |
122.231 |
75.404 |
|
|
|
Stores & Spares |
8.215 |
5.744 |
4.763 |
|
|
|
Capital Goods |
0.000 |
0.000 |
5.928 |
|
|
TOTAL IMPORTS |
155.429 |
127.975 |
86.095 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(2.72) |
2.85 |
1.48 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.02013 Unaudited |
30.09.2013 Unaudited |
|
Net Sales |
|
716.400 |
725.700 |
|
Total Expenditure |
|
682.600 |
665.100 |
|
PBIDT (Excl OI) |
|
33.800 |
60.600 |
|
Other Income |
|
0.100 |
20.200 |
|
Operating Profit |
|
33.900 |
80.800 |
|
Interest |
|
36.900 |
34.200 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(3.000) |
46.600 |
|
Depreciation |
|
36.500 |
36.000 |
|
Profit Before Tax |
|
(39.500) |
10.600 |
|
Tax |
|
(13.400) |
3.600 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(26.100) |
7.000 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(26.100) |
7.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(3.05) |
2.81 |
2.32 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(4.82) |
5.28 |
1.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.67) |
6.89 |
1.46 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.07) |
0.09 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.78 |
0.69 |
0.87 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.03 |
1.51 |
1.85 |
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 |
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 |
Yes |
|
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 |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 |
Yes |
OPERATIONAL REVIEW
During the year, company achieved total revenue from operations of Rs. 2395.400 millions as against 2680.400 millions in the previous year. The fall in the prices of the BOPP Films not only affected the company's topline but also its profitability too. Though the company earned a Profit before Interest and Depreciation of Rs. 198.300 millions but after providing 157.300 millions towards finance cost and 145.900 millions of depreciation, the company suffered a loss of 104.900 millions during the year. After adjustment of deferred tax amounting to Rs. 38.000 millions, net loss stand reduced to Rs. 66.900 millions.
Inspite of the above, the company improved its export performance and has achieved export turnover of Rs. 268.100 millions showing an impressive increase of 19.16% over the previous year. The company is exporting its products to Nigeria, United Kingdom, United Arab Emirates, Bangladesh, Turkey, Oman, Tanzania, Korea etc. and continuous efforts are being made to develop new export markets which will definitely enable the company to improve its performance in the coming periods.
In the current year, the things have started moving in the right direction. It is expected that the revival of the economies in Asia, U.S. and European Union will propel the growth of BOPP industry. The Management is putting whole heartedly all its efforts in cost reduction, quality management, better product mix etc. so as to improve company's performance.
MANAGEMENT DISCUSSIONAND
ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Bi-axially Oriented Polypropylene (BOPP) films, a part of the flexible packing industry has emerged as one of the most successful sector of the plastics packaging market having grown from a specialist replacement for the cellulose film, because of its properties, BOPP Films are used all over the world as favoured packaging material for a wide range of food products including snacks, biscuits, pasta and meat etc. Global demand is increasingly being driven by development in Asia particularly in China, India and Indonesia. Because of economic growth and rising middle class looks for more sophisticated packed food and consumer goods which augur well for the growth of the industry.
Seeing the good scope for sophisticated and hygienically packaging, the company diversified its activities into BOPP Films in 2010. The Company's ultra-modern plant was imported from Bruckner of Germany and started its production on 20th May, 2010. The Company's products have been well received both in the domestic as well as in the international markets. The company is exporting its products to Nigeria, United Kingdom, United Arab Emirates, Bangladesh, Turkey, Oman, Tanzania, Korea etc.
OPPORTUNITIES AND
THREATS
The growing sale of Packed Foods coupled with rapid growth in the Retail Markets, has enabled the flexible packaging industry to register good growth. BOPP is a clear choice when it comes to environmental issues. It is very environment friendly. The BOPP Film in thicker microns would be more in use due to various laws being introduced by the various State Governments in the country due to ecofriendly environmental issue. Seeing the good demand for BOPP Films the industry has gone in for expansion or are in talk with the line manufacturer for the supply of machineries.
Besides, with the recovery in economies of the world, there will be continued strong demand for the BOPP Films which in turn will provide opportunities to the BOPP Films industry to grow at much faster rate. In retail sector, due to private labeling by the big brand chains who are entering into India in a big way, will give a substantial rise to the consumption of BOPP Film which will definitely enable the industry to grow further. Moreover, lot of new application of BOPP Films, apart from conventional Tape/Textile and food packaging market, are emerging which will further improve the prospects of the industry.
In India through flexible packaging segment is growing but the per capita consumption is still very low as compared to the developed countries like US and European Union. The growth of the organized retail market coupled with entry of global retail players will give further boost to the flexible packaging industry. Though the BOPP Films industry continued to witness growth on account of favorable demographic and market factors but it is not immune from normal business threats and challenges. The industry continues to be plagued by the problems of over capacity, short term over supply as well as raw material and finished goods' prices.
Inspite of the above, the management assure you that continuous efforts will be made to meet the challenges ahead and make the BOPP Films project a successful venture.
FUTURE OUTLOOK
The future outlook of the BOPP Films industry seems to be reasonably good. The BOPP Films originally developed as a replacement for cellulose film, has created new market applications and uses because of its technical and economic factors which have made the Industry as one of the most dynamic sector of the plastic packaging. In food industry, increased preference for plastic films and sheet as compared to Kraft paper, aluminum foil and cellophane films has significantly increased the demand for BOPP Films.
In addition to the above, the applications of the BOPP Films in other Non-food packaging is also gaining strength which will further boost the demand for BOPP Films. Numerous grades of BOPP films are under development for various applications in different parts of the world and some of the grades should be able to give good volumes. Thus it is evident that BOPP Films in going to be one of the high-growth segment in the global plastic films and sheet industry.
The company is looking at the future with optimism and shall be expanding its business activities into the new areas, in due course of time so that it can make use of available opportunities and emerge as fully integrated flexible packaging company.
CONTIGENT LIABILITIES
PROVISION AND
CONTIGENT LIABILITIES
a) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if:
- The company has a present obligation as a result of past event.
- A probable outflow of resources embodying economic benefits is expected to settle the obligation and
- The amount of the obligation can be reliably estimated.
b) Contingent Liability is disclosed in case of:
- A present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or
- A possible obligation, unless the probability of outflow in settlement is remote.
|
Particulars |
As on 31.03.2013 |
|
Rs. n Million |
|
|
Contingent Liabilities |
|
|
Claims against the company not acknowledged as debt |
Nil |
|
Guarantees |
Nil |
|
Other money for which the company is contingently liable |
Nil |
|
Commitments |
|
|
Estimated amount of contracts remaining to be executed on capital account and not provided for |
8.928 |
|
Uncalled liability on shares and other investments partly paid |
Nil |
|
Letter of Credit outstanding in favour of Suppliers of Goods (Net of Advances) |
23.750 |
|
Other commitments (specify nature) |
Nil |
|
Total |
32.678 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10234213 |
26/07/2010 |
630,000,000.00 |
ORIENTAL BANK OF COMMERCE |
OVERSEAS BRANCH, G T ROAD, LUDHIANA, Punjab - 141008, INDIA |
A92277557 |
|
2 |
10140019 |
07/10/2010 * |
600,000,000.00 |
Bank of Maharashtra |
Link Road, Ludhiana, Punjab - 141003, INDIA |
A96528427 |
|
3 |
10133219 |
15/10/2010 * |
1,000,000,000.00 |
Oriental Bank of Commerce |
Overseas Branch, Ludhiana, Punjab - 141003, INDIA |
A96528666 |
|
4 |
10027840 |
23/11/2006 |
1,240,000,000.00 |
ORIENTAL BANK OF COMMERCE |
OVERSEAS BRANCH, G T ROAD, LUDHIANA, Punjab - 141003, INDIA |
A07604390 |
|
5 |
80018877 |
05/12/2005 |
700,000,000.00 |
CANARA BANK |
BHARAT NAGAR CHOWK, LUDHIANA, Punjab - 141001, INDIA |
- |
|
6 |
90168440 |
28/09/1991 |
5,000,000.00 |
PUNJAB NATIONAL BANK |
OVERSEAS BRANCH, ludhiana, Punjab, INDIA |
- |
* Date of charge modification
FIXED ASSETS
· Land and Building
· Plant and Machinery
· Vehicles
· Furniture and Fixtures
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.12 |
|
|
1 |
Rs. 101.53 |
|
Euro |
1 |
Rs. 85.41 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.