MIRA
INFORM REPORT
|
Report Date : |
12.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
ESSEL PROPACK LIMITED |
|
|
|
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Registered
Office : |
P.O. Vasind, Taluka
Shahapur, Thane – 421 604, |
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|
|
Country : |
India |
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|
Financials (as
on) : |
31.03.2012 |
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|
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Date of
Incorporation : |
22.12.1982 |
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Com. Reg. No.: |
11-028947 |
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Capital
Investment / Paid-up Capital : |
Rs. 314.131 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74950MH1982PLC028947 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUME01100B/ MUME5540D/ MUME05539C/ MUME05385C/ MUME04861D |
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|
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PAN No.: [Permanent Account No.] |
AAACE1568L |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufactures and Sellers of Composite Laminated
Collapsible Tubes, Laminates and Plastic Films. |
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|
|
No. of Employees
: |
825 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (61) |
|
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 26000000 |
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|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Essel Group. It is a well established and reputed
company having fine track record. Financial position of the company appears
to be sound. Director are reported to be experienced and respectable
businessman. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A3+ (Short term bank facilities) |
|
Rating Explanation |
Moderate degree of safety and higher credit risk. |
|
Date |
20.03.2012 |
|
Rating Agency Name |
CARE |
|
Rating |
BBB+ (Long term bank facilities) |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
20.03.2012 |
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 : |
P.O. Vasind, Taluka
Shahapur, Thane – 421 604, |
|
Tel. No.: |
91 – 22 – 2493 3280 / 3281 / 2493 9686 / 9689 |
|
Fax No.: |
91 – 22 – 2496 3137/24935188 |
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E-Mail : |
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|
Website : |
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Head Office : |
3rd
Floor, Satam Estate, Above Bank of Baroda, Cardinal Gracious Road, Chakala,
Andheri (East), Mumbai - 400 099, Maharashtra, India |
|
Tel. No.: |
91-22-2821 5168,
2820 2108, 2820 2114 |
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Fax No.: |
91-22-2839 2259,
2837 5646 |
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E-Mail : |
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Administrative Office : |
135, |
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Tel. No.: |
91-22-56535653/ 56535700 |
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Fax No.: |
91-22-24963137 |
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|
|
|
Corporate Office : |
10th Floor, |
|
Tel. No.: |
91-22-2481 9000 / 2481 9200 |
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Fax No.: |
91-22-2496 3137 / 2491 4649 |
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|
Unit 1 : |
Cuddalore, Goa, Murbad, Nalagarh, Puducherry,
Silvassa, Sitarganj (Uttarakhand), Chakan, Vasind and Wada |
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Unit 2 : |
China, Colombia, Egypt, Germany, Indonesia,
Mexico, Philippines, Poland, Russia,
UK and USA |
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Overseas Offices : |
·
·
·
·
·
·
·
·
·
·
·
·
·
|
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Subhash Chandra |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
61 years |
|
Other Directorship : |
· ZEE Entertainment Enterprises Limited · Essel Infraprojects Limited · Dish TV India Limited · Zee News Limited · Wire & Wireless India Limited |
|
|
|
|
Name : |
Mr. Ashok Kumar Goel |
|
Designation : |
Vice Chairman and Managing Director |
|
Qualification : |
B.Com. |
|
Date of Appointment : |
01.07.1988 |
|
|
|
|
Name : |
Mr. Boman Moradian |
|
Designation : |
Additional Director |
|
Date of Appointment : |
14.03.2006 |
|
|
|
|
Name : |
Mr. Tapan Mitra |
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Designation : |
Director |
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|
|
Name : |
Mr. K V Krishnamurthy |
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Designation : |
Director |
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|
|
|
Name : |
Mr. Mukund M. Chitle |
|
Designation : |
Director |
|
Date of Birth/Age : |
62
years |
|
|
· Larsen and Toubro Limited · ASREC (India) Limited · Ram Ratna Wires Limited · Shriram Transport Finance Co. Limited. resigned w.e.f July 05, 2012 · ITZ Cash Card Limited · ONGC Petro Additions Limited · ONGC Mangalore Petrochemicals Limited · Foseco India Limited · L & T General Insurance Company Limited · Larsen and Toubro Infotech Limited |
KEY EXECUTIVES
|
Name : |
Mr. Aashay S. Khandwala |
|
Designation : |
Vice President (Legal) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
334750 |
0.21 |
|
|
92165335 |
58.67 |
|
|
92500085 |
58.88 |
|
|
|
|
|
|
89305 |
0.06 |
|
|
89305 |
0.06 |
|
Total shareholding
of Promoter and Promoter Group (A) |
92589390 |
58.94 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
7324075 |
4.66 |
|
|
14813 |
0.01 |
|
|
2227927 |
1.42 |
|
|
15504145 |
9.87 |
|
|
25070960 |
15.96 |
|
|
|
|
|
|
12969174 |
8.26 |
|
|
|
|
|
|
19605779 |
12.48 |
|
|
5344803 |
3.40 |
|
|
1521179 |
0.97 |
|
|
1496321 |
0.95 |
|
|
1218 |
0.00 |
|
|
23640 |
0.02 |
|
|
39440935 |
25.11 |
|
Total Public
shareholding (B) |
64511895 |
41.06 |
|
Total (A)+(B) |
157101285 |
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) |
157101285 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufactures and Sellers of Composite Laminated Collapsible Tubes, Laminates and Plastic Films. |
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||||
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Products : |
·
Laminated Tubes ·
Seamless Tubes
(For high-end cosmetics) ·
Closures ·
Webs |
PRODUCTION STATUS (As on: 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity $ |
Installed
Capacity # # |
Actual
Production |
|
Laminated and Co-ex Tubes |
Million Nos. |
NA |
2,595 |
#2,209.30 |
|
Laminates |
M.T. |
NA |
7,200 |
**6,481.55 |
|
Plastic Film |
M.T. |
NA |
6,690 |
***6,978.38 |
Note:
* Excludes 3.13 Mio (37.59 Mio.) tubes scrapped
** Consumed 5,075.85 MT (8,233.15 MT) for captive
*** Includes 1,226.19 MT (320.21 MT) produced through third parties, and is fully captively consumed
$ Licensed Capacity per annum not indicated due to abolition of industrial licenses as per Notification No. 477(E) dated July 25,1991 issued under the Industries (Development and Regulation) Act, 1951
# Includes 86.49 Mio (88.10 Mio) produced through third party
# # installed capacity on annualized basis, as certified by the management
GENERAL INFORMATION
|
No. of Employees : |
825 (Approximately) |
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Bankers : |
·
Axis Bank Limited ·
Bank of India ·
Barclays Bank Limited ·
DBS Bank Limited ·
IDBI Bank Limited ·
ING Vysya Bank Limited ·
Punjab National Bank ·
Ratnakar Bank Limited ·
Standard Chartered Bank ·
State Bank of India ·
Yes Bank Limited |
||||||||||||||||||||||||||||||
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Facilities : |
Note :
Rs. 260.542 millions (Rs. 244.241 millions) are secured by
hypothecation of current assets and second charge on fixed assets situated at
Vasind, Murbad, Wada, Goa and Nalagarh units. These loans are also
collaterally secured by land owned and guarantee issued by a promoter group company. Rs. 391.541 millions (Rs. 99.322 millions) are secured by
hypothecation of current assets and second charge on fixed assets situated at
Vasind, Murbad, Wada, Goa and Nalagarh units. Second charge on fixed assets
is yet to be created for short term borrowings of Rs. 327.253
millions (Rs. 94.514 millions). Rs. 81.740 millions (Rs. 27.725 millions) are secured by first
pari-pasu charge on current assets of the Company. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
MGB and Company Chartered Accountants |
|
|
|
|
Associate : |
· P.T. Lamipak Primula, Indonesia · Ras Propack Lamipack Limited · Ras Extrusions Limited |
|
|
|
|
Joint Venture : |
· Essel Deutschland GmbH and Company, KG Dresden · Essel Deutschland Management GmbH, Germany |
|
|
·
|
|
Direct Subsidiaries
: |
· Arista Tubes Inc., USA * · Lamitube Technologies Limited, Mauritius · Lamitube Technologies (Cyprus) Limited, Cyprus · Packaging India Private Limited, India · Essel Packaging (Nepal) Private Limited , Nepal ^ |
|
|
|
|
Step down
Subsidiaries : |
· The Egyptian Indian Company for Modern Packaging S.A.E., Egypt · Essel Propack MISR for Advanced Packaging S.A.E., Egypt · Essel Packaging (Guangzhou) Limited, China · Essel Propack Philippines, Inc, Philippines · MTL de Panama S.A., Panama · Packtech Limited, Mauritius · Arista Tubes Limited, United Kingdom · Essel Propack UK Limited, United Kingdom · Essel Propack de Venezuela, C.A., Venezuella^ · Essel de Mexico, S.A. de C.V., Mexico · Tubo pack de Colombia S.A., Colombia · Essel Propack LLC, Russia · Essel Propack Polska Sp. Z.O.O., Poland · Essel Propack America, LLC, USA |
|
|
|
|
Other Related Parties : |
· Ayepee Lamitubes Limited · Churu Trading Company Private Limited · Continental Drug Company Private Limited · Essel Corporate Resources Private Limited · Ganjam Trading Company Private Limited · Pan India Paryatan Private Limited · Premier Finance and Trading Company Limited · Prajatma Trading Company Private Limited · Zee Entertainment Enterprises Limited · Briggs Trading Company Private Limited · Rama Associates Limited · Aqualand (India) Limited |
^
These subsidiaries have discontinued their operations.
* 7.35% (7.35%) holding
is held through Lamitube Technologies (Cyprus) Limited.
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.2/- each |
Rs. 400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
156601130 |
Equity Shares |
Rs.2/- each |
Rs. 313.202 Millions |
|
|
Less: Calls in arrears |
|
Rs. 0.071 |
|
|
Share capital suspense |
|
Rs. 1.000 |
|
|
Total |
|
Rs. 314.131
Millions |
Reconciliation of number of shares outstanding
|
Particulars |
31.03.2012 |
|
|
Number of equity shares |
Rs. In millions |
|
|
At the beginning of the year |
156,601,130 |
313.202 |
|
Issued during the year |
- |
-- |
|
Outstanding at the end of the year |
156,601,130 |
313.202 |
Terms/ rights
attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of
the equity shares will be entitled to receive remaining assets of the company,
after distribution of preferential amount. The distribution will be in proportion
to the number of equity shares held by the shareholders.
Calls unpaid
|
Particulars |
31.03.2012 |
|
|
Number of equity shares |
Rs. In millions |
|
|
Aggregate amount of calls unpaid - others |
71,650 |
0.071 |
Details of each shareholder
holding more than 5% equity shares
|
Name of Shareholder |
31.03.2012 |
|
|
Number of equity shares |
Percentage (%) of holding |
|
|
Ganjam Trading Company Private Limited |
56,349,550 |
35.98% |
|
Rupee Finance and Management Private Limited |
28,429,710 |
18.15% |
|
Lazarus Investments Limited |
- |
- |
No bonus shares have been issued or shares issued for consideration other than cash and no shares bought back during five years preceding 31 March 2012.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 (12 Months) |
31.03.2011 (12 Months) |
31.03.2010 (15 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
314.131 |
313.131 |
313.130 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6335.836 |
6128.804 |
5797.179 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6649.967 |
6441.935 |
6110.309 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1854.659 |
1521.019 |
2691.975 |
|
|
2] Unsecured Loans |
2334.306 |
1770.430 |
2068.748 |
|
|
TOTAL BORROWING |
4188.965 |
3291.449 |
4760.723 |
|
|
DEFERRED TAX LIABILITIES |
165.607 |
159.731 |
171.121 |
|
|
Foreign currency monetary items translation difference account (net) |
19.255 |
0.000 |
-- |
|
|
|
|
|
|
|
|
TOTAL |
11023.794 |
9893.115 |
11042.153 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2353.017 |
1816.619 |
1543.440 |
|
|
Capital work-in-progress |
160.215 |
176.528 |
209.390 |
|
|
Intangible assets under development |
9.518 |
5.881 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
5635.346 |
5685.937 |
5733.987 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Foreign currency monetary items translation difference account (net) |
0.000 |
7.282 |
80.041 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
546.726
|
625.122 |
438.316
|
|
|
Sundry Debtors |
1011.713
|
761.395 |
730.236
|
|
|
Cash & Bank Balances |
27.617
|
22.581 |
84.755
|
|
|
Other Current Assets |
291.437
|
202.666 |
150.622
|
|
|
Loans & Advances |
3166.634
|
2294.533 |
2684.619
|
|
Total
Current Assets |
5044.127
|
3906.297 |
4088.548 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
327.899
|
350.642 |
319.714
|
|
|
Other Current Liabilities |
1510.977
|
1182.683 |
190.025 |
|
|
Provisions |
339.553
|
172.104 |
140.594
|
|
Total
Current Liabilities |
2178.429
|
1705.429 |
650.333
|
|
|
Net Current Assets |
2865.698
|
2200.868 |
3438.216
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
37.079 |
|
|
|
|
|
|
|
|
TOTAL |
11023.794 |
9893.115 |
11042.153 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 (12 Months) |
31.03.2011 (12 Months) |
31.03.2010 (15 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4966.166 |
4183.374 |
4290.874 |
|
|
|
Other Income |
452.610 |
569.922 |
250.468 |
|
|
|
TOTAL (A) |
5418.776 |
4753.296 |
4541.342 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2335.599 |
|
3458.594 |
|
|
|
Other expenses |
1206.491 |
994.536 |
|
|
|
|
Employee benefits expense |
484.732 |
431.658 |
|
|
|
|
Changes in inventories of finished goods and goods-in-process |
2.971 |
(29.097) |
|
|
|
|
TOTAL (B) |
4029.793 |
3283.682 |
3458.594 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) |
1388.983 |
1469.614 |
1082.748 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
587.359 |
593.943 |
352.361 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
801.624 |
875.671 |
730.387 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
286.117 |
243.052 |
288.858 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
515.507 |
632.619 |
441.529 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
24.761 |
191.792 |
96.042 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
490.746 |
440.827 |
345.487 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1059.258 |
771.717 |
525.185 |
|
|
|
|
|
|
|
|
|
Less |
Pursuant to the
Scheme of Merger |
451.805 |
-- |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
49.075 |
44.083 |
25.912 |
|
|
|
Dividend |
16.566 |
15.242 |
73.044 |
|
|
|
Proposed Dividend |
102.116 |
93.961 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
930.442 |
1059.258 |
771.717 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
336.671 |
348.272 |
380.948 |
|
|
TOTAL EARNINGS |
336.671 |
348.272 |
380.948 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1185.253 |
1104.143 |
950.357 |
|
|
|
Stores & Spares |
82.294 |
54.780 |
79.888 |
|
|
|
Capital Goods |
418.517 |
359.798 |
74.497 |
|
|
TOTAL IMPORTS |
1686.064 |
1519.721 |
1104.742 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
3.12 |
2.80 |
2.21 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
1376.000 |
1504.000 |
1486.400 |
|
Total Expenditure |
1111.000 |
1173.000 |
1179.200 |
|
PBIDT (Excl OI) |
265.000 |
331.000 |
307.200 |
|
Other Income |
141.000 |
69.000 |
58.000 |
|
Operating Profit |
406.000 |
400.000 |
365.200 |
|
Interest |
168.000 |
144.000 |
108.000 |
|
Exceptional Items |
0.000 |
(10.000) |
0.000 |
|
PBDT |
23.8.000 |
246.000 |
257.200 |
|
Depreciation |
81.000 |
85.000 |
92.500 |
|
Profit Before Tax |
157.000 |
161.000 |
164.700 |
|
Tax |
44.000 |
29.000 |
50.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
113.000 |
132.000 |
114.700 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
113.000 |
132.000 |
114.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 (12 Months) |
31.03.2011 (12 Months) |
31.03.2010 (15 Months) |
|
PAT / Total Income |
(%) |
9.06
|
9.27
|
7.61
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.38
|
15.12
|
10.29
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.97
|
11.05
|
7.84
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.10
|
0.07
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.63
|
0.51
|
0.78
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.32
|
2.29
|
6.28
|
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 |
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 |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
CORPORATE INFORMATION
Subject is a producer of plastic packaging material in the form of multilayer collapsible tubes and laminates used primarily for packaging of toothpaste, personal care, cosmetics, pharmaceuticals, household and industrial products.
REVIEW OF BUSINESS
AND OPERATIONS:
The Company is a manufacturer globally of multi-layered plastic collapsible tubes and laminates, considered as specialty packaging. Its tubes are extensively used by industry in the packing of their products spanning categories such as toothpaste, cosmetics, foods and pharmaceuticals. Packaging plays an important role in protecting the product, keeping it fresh and potent and making for its aesthetics and display value in the retail shelf, besides helping to deliver it to consumer in an efficient and convenient manner. The packaging industry continues to grow given its symbiotic linkage to products of mass daily consumption. The growth in developing markets like India is even more pronounced. As a leader in the tube space, the Company is constantly striving to grow the market and gain share through innovative offerings and efficient supply chain.
INDIA:
The
Company having pioneered laminated tubes in India since the 1980’s, continues
to be the market leader. The toothpaste category is a pre-dominant user of the
laminated tubes in India. This category holds high growth potential given the
current low per capita usage of tooth paste and the growing income and
awareness levels and will continue to power the Company’s sales.
Complementing
this, the Company is actively promoting the use of high value laminated and
plastic extruded tubes in categories such as cosmetics, foods and
pharmaceuticals. The increasing number and range of customers and SKUs bear
testimony to the Company’s success with this strategic foray. So much so, over
47% of the Company’s India sales this year is from the non-oral care category.
The
Company’s innovation driven R&D, show-cased to customers as Creativity
& Innovation (C&I) has been powering these efforts through a pipeline
of innovations in material structure, product dispensing, ‘look and feel’
features, and product recyclability. During the year, the Company filed 18
patent applications. The Company has invested in printing technologies which
can produce high impact graphics and decoration and can flexibly cater to
varying run sizes and print customization.
During
the year, the Company ramped up its new plastic tube capacity at Wada and
continued to invest in new capacities to support the fast growing demand. Customer
service process was strengthened in order to achieve higher order servicing
levels and faster order turnaround.
The rupee devaluation coupled with escalating
global commodity prices put pressure on input costs. While the Company has an
established process of regular price review and pass through of cost
escalation, the margins were impacted on account of the lag effect in passing
through the cost escalation. The Company has also initiated in parallel, a
number of measures to improve material and machine productivity and to make its
cost structure even more competitive on long term basis.
MANAGEMENT DISCUSSION
AND ANALYSIS
BUSINESS OVERVIEW:
The Company manufactures and markets a wide range of plastic
tubes, both laminated and extruded and flexible plastic laminates. These tubes
are eminently suited for packing viscous product forms such as pastes, gels and
creams. Besides preserving and protecting the product, tubes as a packaging
form offer superior value proposition in terms of ease of dispensing product,
hygienic storage in a multiple usage situation and excellent brand visibility
on retail shelves. Tubes therefore have become a favoured packaging material
worldwide for a range of consumer products such as toothpaste, face creams,
hair conditioners, shaving creams, cosmetics and pharmaceutical ointments.
Flexible Plastic laminates on the other hand, find use as pouches, sachets and
wrappers to contain product forms such as solid, powder and liquids. They offer
excellent brand visibility at low cost. A number of products use these
laminates, such as detergent powder, soap tablets, food products, oils,
shampoos, biscuits, chocolates, pharmaceuticals etc.
The
Company pioneered plastic laminated tubes in India. Over the last 28 years, it
has transformed into a leading global player in laminated tubes, manufacturing
and selling over 5 billion tubes across 12 countries. The other two products,
viz plastic extruded tubes and the flexible plastic laminated are relatively
recent forays targeting select markets viz. India, Europe and USA in the case
of plastic extruded tubes and India alone in the case of flexible plastic
laminates. The Company’s key strengths include strong domain knowledge of
polymers and plastic structures, proven innovation capability, global customer
network and a fully integrated manufacturing.
The market for the Company’s products is huge
in the developed markets of Europe and America. It is growing rapidly in the
emerging markets of Asia, Africa and Latin America driven by a booming Fast
Moving Consumer Goods (FMCG) industry. As the disposable income in these
markets grows, both the usage and sophistication of packaging is expected to
witness sustained uptrend. Plastic laminated and extruded tubes in a sense are
a more evolved form of packaging and in the long term could benefit from
conversion from other packaging forms such as bottles and sachets. With its
scale, global reach and innovation capability, the Company is strategically
well-placed to benefit from this linkage to the FMCG sector.
OPERATIONAL
PERFORMANCE REVIEW:
The year was marked by volatile commodity and input prices, weak consumer demand in the USA and Europe, slowdown in the Indian and Chinese GDP growth, high inflation and interest rates in India, and a sharp devaluation in Indian rupee. Despite the difficult environment, the Company posted satisfactory results during the current year helped by a four pronged strategy, viz.
1.
Pro-active customer development, specially in India and Europe.
2.
Cost reduction programs across the business.
3.
Fixing performance issues of the plastic extruded tubes business in US and
Poland.
4.
Conservation of Cash through selective capex spend and inventory reduction.
Key
high notes of the year are as follows:
1.
Strong growth in the profits of the US operations.
2.
Robust revenue growth of 50% and reduction by 50% in the EBITDA losses at the
Polish unit.
3.
A strong 15% volume growth in India, with the new plastic extruded tubes
capacity ramping up.
4.
Finance costs contained at previous year level, through pro-active management
of the borrowings and interest rates.
5.
` 400 million reduction in
inventory through improved stock turn.
6.
Strong recovery in the profitability of the India flexible packaging unit
helped by high capacity utilization and improvement in operating efficiencies.
The
key challenges faced by the business have been:
l Input cost increases due
to volatility in the global commodity prices accentuated in India, Mexico and Russia
by sharp currency devaluation, impacting the margin and profits.
l Off-take issues with a key customer in China for a significant
period during the year, impacting sales and profits.
Segment
Performance Review:
The
Company’s key business is in Plastic packaging materials. The business is
managed by four geographical segments viz.
1.
Americas (with operations in the USA, Mexico and Colombia)
2.
Europe (with operations in the
UK, Germany, Poland and Russia)
3.
AMESA - Africa, Middle
East & South Asia (with operations in Egypt and India )
4.
EAP - East Asia Pacific (with operations in China, Philippines &
Indonesia)
CREATIVITY
AND INNOVATION (C&I)
The
Research and Development function has been one of the key drivers of the
Company’s growth into a leading global player.
Dedicated group in creativity and innovation
continuously work on various polymers, additives and allied process. Idea is to
apply new science on the commonly available materials and transform them into
special featured laminates and tubes. Some such developments include, polymer
with high clarity and high sheen that looks like metal but feels like soft
plastic. In another innovation, the C&I have created a large diameter tube
which has a rigid ‘bottle like’ feel but a much lower component weight, thus
reducing the use of plastic material and helping position tube packaging as
more ‘sustainable’ compared to bottles.
Another
area of C&I work covered designing tubes in such a manner that they become
more chemically inert and are able to accommodate chemically more aggressive
product formulations such as hair colourants.
Yet
another area of C&I work goes to inventing a new processing technique for
polymer conversion. Here the idea is to have more energy efficient conversion
and do away with unnecessary sub process.
Group
of dedicated C&I members along with the new product development team
assisted by legal department working on creating intellectual property rights.
As a result, the Company has filed 18 patent applications during the year. The
Directors believe that this will provide the Company long term competitive
advantage and further enhance the Company’s image.
The Company’s research and development efforts
continue to win accolades in several forums across the globe. The Company is
committed to leverage its R&D capability to further sharpen its competitive
edge globally and make a difference to its customers.
OUTLOOK
The
global economic outlook is beset with recessionary concerns. While this may hold
back an ambitious growth in the developed markets of USA and Europe,
opportunity to grow will exist in Latin America, Africa and Asia, especially in
laminated tubes. The market however could be competitive and pricing may come
under pressure.
The new innovations and capabilities built up
by the Company, and its significant global presence should help the Company
seize the opportunity. With its renewed focus on costs and efficiency, the
Company is poised to sustain a profitable growth in these difficult times.
The Company’s wholly owned subsidiary (WOS),
Essel Packaging (Nepal) Private Limited, had discontinued its operations and
disposed off assets and paid off liabilities. The Company has already received ` 60,000,000 upon reduction
of the Subsidiary’s capital, and provided ` 18,996,622 towards diminution in value of
Investment (including current year Rs.
2.000 millions) and the Management is of the opinion that the
realizable value of investment will not be less than its carrying value.
Scheme of Merger of
Ras Propack Lamipack Limited (“RPLL”) and Ras Extrusions Limited (“REL”) with
the Company.
a)
A scheme
of Merger (“The Scheme”) of Ras Propack Lamipack Limited (“RPLL”) and Ras
Extrusions Limited (“REL”) with the company as part of Modified Scheme was
sanctioned by Board for Industrial and Financial Reconstruction (“BIFR”) on 10
May 2012 vide summary record of proceedings issued on 28 August 2012. The
Scheme became effective on 30 August 2012 and consequently, the entire
undertaking of the transferor companies including all assets, liabilities and
reserves, vested in the Company on appointed date 1 April 2011. Accordingly,
accounts for the year ended 31 March 2012 have been drawn up giving effect to
the Scheme and include the transactions of transferor companies of the year
2011-2012.
b)
The
Merger is accounted for as per “Pooling of Interest” method prescribed under
Accounting Standard 14 “Accounting of Amalgamations”.
c)
Pursuant
to the Scheme:
I. Assets and liabilities of RPLL and REL as at 1 April 2011 have been taken over at their book values (including certain assets revalued) subject to debit adjustment of ` 198,176 made for difference in the accounting policy of employee benefits of transferor companies.
II. The book value of Company’s investments in the equity shares of the RPLL and REL and Inter-company loans, advances, deposits and balances have been cancelled.
III. 380,248 and 119,907 fully paid up equity shares of Rs. 2 each are to be allotted to shareholders of RPLL and REL respectively on record date. Pending such allotment, the amount has been credited to share capital suspense (Refer note 3).
IV. The difference between net assets taken over, equity shares to be issued, extinguishment of the Company’s investment in transferor companies and other reserves taken over, has been credited to General reserve as detailed below:
(Rs. In millions)
|
Assets and Liabilities |
RPLL |
REL |
Total |
|
Fixed Assets |
74.297 |
34.136 |
108.433 |
|
Current assets, loans and advances |
32.475 |
2.062 |
34.537 |
|
Cash and bank balances |
0.021 |
0.116 |
0.136 |
|
Current liabilities and provisions |
(165.767) |
(33.730) |
(199.498) |
|
Unsecured loans |
(46.700) |
(15.000) |
(61.700) |
|
Net Assets |
(105.675) |
(12.417) |
(118.092) |
|
Less: Inter-company investments cancelled |
41.091 |
7.500 |
48.591 |
|
Less: Equityshares to be allotted |
0.760 |
0.240 |
1.000 |
|
Reserves and surplus taken over |
|
|
|
|
Capital reserve |
176.564 |
18.114 |
194.677 |
|
Revaluation reserve |
|
14.754 |
14.754 |
|
Debit balance in profit and loss account |
(386.070) |
(65.735) |
(451.805) |
|
Surplus transferred to General reserve |
74.691 |
||
d)
During the period between the appointed date and the effective
date, as RPLL and REL have carried on the existing business in
"trust" on behalf of the Company, all vouchers, documents etc., for
the period are in the name of RPLL and REL.
e)
Pending completion of the relevant formalities of
transfer, certain assets and liabilities acquired pursuant to the Scheme are
accounted bythe Company and remains in the names of transferor Companies.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
In Millions) |
|
Long-term
borrowings |
|
|
|
Term loan from banks |
280.625 |
806.458 |
|
Buyers credit from banks |
329.079 |
84.969 |
|
Inter-corporate deposits |
0.000 |
0.000 |
|
Deferred sales tax loan |
320.442 |
378.728 |
|
Short-term
borrowings |
|
|
|
Short-term loan from banks |
645.268 |
470.000 |
|
Working capital loan from banks |
32.137 |
30.275 |
|
Buyers credit from banks |
88.255 |
0.000 |
|
Inter-corporate deposits |
638.500 |
0.000 |
|
Total |
2334.306 |
1770.430
|
Note :
|
Out of unsecured term loan and buyers credit from banks Rs. 1,135,504,301, Rs. 707.322 millions (Rs. 665.625 millions) are against exclusive charge on land owned and guarantee issued by a promoter group company. |
Term loan from banks carrying interest rate ranging from 12.45% to 16.50% p.a. and are repayable in monthly / quarterly installments by 2014-15. Buyers credit carrying interest rate ranging from 2.24% to 4.04 % p.a. and are repayable in maximum period three years from the date of transaction. |
|
Deferred sales tax interest free loans are repayable after a period of 10 to 14 years upto 2024-25. |
|
Unsecured short term loan from banks of Rs. 250.000
millions (Rs. 250.000 millions) are against exclusive charge on land owned and guarantee
issued by a promoter group company.
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
|
Unexpired Letters of Credit (net of
liability provided) |
260.288 |
|
Guarantees and counter guarantees given by the Company [includes Rs. 5133.822 millions (Rs. 4897.619 millions) for loans taken by Subsidiaries]. Loans outstanding against these guarantees are Rs. 2788.793 millions (Rs. 3575.862 millions) |
5148.598 |
|
Disputed Indirect Taxes
* |
276.118 |
|
Disputed Direct Taxes |
28.805 |
|
Claims not acknowledged
as debts |
3.332 |
|
Deferred Sales Tax
Liability assigned |
84.497 |
|
Duty
benefit availed under EPCG scheme, pending export obligations |
117.430 |
* Does not include disputed excise duty of Rs. 198.192 millions (Rs. 198.192 millions) for
alleged undervaluation in inter unit transfer of Web, for captive consumption
as it does not have significant impact on profits of the Company since excise
duty paid by one unit is admissible as Cenvat credit at other unit. Further,
the appeal filed by Excise Department against the decision (in Company’s
favour) of High Court is pending before Supreme Court.
UNAUDITED FINANCIAL RESULTS FOR QUARTER AND NINE MONTHS ENDED 31st
DECEMBER, 2012
(Rs. In millions)
|
Particulars |
Quarter Ended |
Nine Month Ended |
|
||
|
31.12.2012 Unaudited |
30.09.2012 Unaudited |
31.12.2012 Unaudited |
|
||
|
1 Income from operations a. Net Sales / Income from operations (net of excise duty) b. Other operating income |
1449.700 36.700 |
1465.500 38.100 |
4252.200 114.400 |
|
|
|
Total income from
operations (net) |
1486.400 |
1503.600 |
4366.600 |
|
|
|
2 Expenses: a. Cost of materials consumed b. Changes in inventories of finished goods and work in
progress c. Employee benefits expense d. Depreciation and amortisation expense e. Other expenses |
708.400 (11.300) 134.400 92.500 347.700 |
731.400 (28.300) 145.000 85.100 324.100 |
2101.100 (64.000) 424.300 258.800 1000.300 |
|
|
|
Total expenses |
1271.700 |
1257.300 |
3720.500 |
|
|
|
3 Profit from operations
before other income, finance costs and exceptional items (1-2) |
214.700 |
246.300 |
646.100 |
|
|
|
4 Other income |
55.600 |
69.400 |
217.500 |
|
|
|
5 Profit from ordinary activities
before finance costs and exceptional items (3+4) |
270.300 |
315.700 |
863.600 |
|
|
|
6 Gain/(Loss) on foreign
exchange difference (net) |
2.400 |
(10.000) |
40.300 |
|
|
|
7 Finance costs |
108.000 |
143.800 |
420.300 |
|
|
|
8 Profit after finance
cost but before exceptional items (5+6-7) |
164.700 |
161.900 |
483.600 |
|
|
|
9 Exceptional Items |
0.000 |
0.000 |
0.000 |
|
|
|
10 Profit before Tax for
the period (8+9) |
164.700 |
161.900 |
483.600 |
|
|
|
11 Tax expense (current
tax, deferred tax, mat credit entitlement etc;) |
50.000 |
28.600 |
123.100 |
|
|
|
12 Net Profit after tax
for the period (10-11) |
114.700 |
133.300 |
360.500 |
|
|
|
13 Paid-up equity share
capital (Face Value X
2/- each) |
314.100 |
314.100 |
314.100 |
|
|
|
14 Reserves excluding
Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
|
|
15 Earnings Per Share
(EPS) Basic and Diluted
Earnings Per Share |
0.73 |
0.85 |
2.29 |
|
|
|
PART II A PARTICULARS OF SHARE
HOLDINGS 1 Public
shareholding - Number
of Shares (Lacs) - Percentage
of Shareholding 2 Promoters
and Promoters Group Shareholding a. Pledged
/ Encumbered (Lacs) - Percentage
of shares (as a % of the total shareholding of Promoter and Promoter Group) - Percentage
of shares (as a % of the total Share Capital of the Company) b. Non-encumbered - Number
of Shares (Lacs) - Percentage
of shares (as a % of the total shareholding of Promoter and Promoter Group) - Percentage
of shares (as a % of the total Share Capital of the Company) |
645.12 41.06% 20.00 2.16% 1.28% 905.89 97.84% 57.66% |
645.12 41.06% 20.00 2.16% 1.28% 905.89 97.84% 57.66% |
645.12 41.06% 20.00 2.16% 1.28% 905.89 97.84% 57.66% |
|
|
|
B INVESTOR COMPLAINTS Pending at the beginning of the quarter Received during the quarter Disposed of during the quarter Remaining unresolved at the quarter |
0 4 4 0 |
||||
NOTES:
The above results were reviewed by the Audit Committee and approved by the Board of Directors of the Company in its meeting held on 5 February 2013.
The Statutory Auditors have carried out a limited review of the results for the quarter and nine month ended 31 December 2012.
RAS Propack Lamipack Limited and RAS Extrusion Limited have merged with the Company from appointed date 1 April 2011, pursuant to Scheme of merger sanctioned by the Hon'ble BIFR on 10 May 2012. While the audited results for the year ended 31 March 2012 include results of merged companies, the results for the quarter and nine months ended 31 December 2011 do not include the same, to that extent current period results are not comparable with corresponding previous periods.
None of the financials of the Subsidiaries / Associates / Joint Ventures have been consolidated in the above results.
Under AS-17, the Company has only one major identifiable business segment viz. Plastic Packaging Material.
FIXED ASSETS
v
Tangible
assets
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Equipments
· Furniture and Fixtures
· Vehicles
v
Intangible
assets
· Software
PRESS RELEASE
ESSEL PROPACK SPIKES 5% AFTER STRONG Q3 NUMBERS
FEB 06, 2013
Specialty packaging company Essel Propack that manufactures laminated and seamless or extruded plastic tubes shot up more than 9 percent intraday on Wednesday on strong third quarter numbers.
Consolidated net profit of the company rose by 63 percent year-on-year to Rs 220.000 millions in the October-December quarter. Margins improved by 140 basis points YoY to 18 percent during the quarter.
Meanwhile, consolidated revenues grew by 8 percent to Rs 4480.000 millions from Rs 4150.000 millions YoY.
In an interview to CNBC-TV18, Ashok Goel, MD and vice chairman of the company said the Essel Propack's Europe business incurred loss amidst new project ramp-up that will add upto 15 million euros per year into the top-line.
The company's subsidiary received long-term contract in Europe from FMCG company.
At 15:04 hours IST, shares rose 5 percent to Rs 37.90 amid large volumes on
Bombay Stock Exchange.
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 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.54.29 |
|
|
1 |
Rs.81.08 |
|
Euro |
1 |
Rs.70.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
53 |
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.