MIRA INFORM REPORT

 

 

Report Date :

14.03.2013

                                           

IDENTIFICATION DETAILS

 

Name :

JINDAL POLY FILMS LIMITED (w.e.f. March, 2005)

 

 

Formerly Known As :

JINDAL POLYESTER LIMITED

 

 

Registered Office :

19th K M, Hapur - Bulandshahr Road, P.O. Gulaothi, Bulandshahr – 245408, Uttar Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

09.09.1974

 

 

Com. Reg. No.:

20-003979

 

 

Capital Investment / Paid-up Capital :

Rs. 430.219  Millions

 

 

CIN No.:

[Company Identification No.]

L17111UP1974PLC003979

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MRTJ00149C

 

 

Legal Form :

Public Limited Liability Company. The company's shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing of Polyester Resin, Polyester Filament Yarn, Polyester Chips and Biaxially Oriented Polyester Film.

 

 

No. of Employees :

1000 (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 68800000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of the BC Jindal group. It is a well established and reputed company having a good track record. There appears slight dip in sales as well as in profitability.

 

However, general financial position of the company seems to be strong. Performance capacity appears to be high. Liquidity position of the company is good.

 

Subject gets good supports from its group companies. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment.

 

In view of strong holding and experienced directors, the company can be considered for good business dealings at usual trade terms and condition.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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

CRISIL

Rating

AA- (Long term)

Rating Explanation

Having high degree of safety regarding timely servicing of financial obligation it carry very low credit risk.

Date

October, 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/Factory 1 :

19th K M, Hapur - Bulandshahr Road, P.O. Gulaothi, Bulandshahr – 245408, Uttar Pradesh, India

Tel. No.:

91-122-2312088 / 2311087

91-5732-229143 / 229105

Fax No.:

91-122-2312244

E-Mail :

info@jindalpolyester.com

secretarial_polyester@jindalgroup.com

Website :

http://www.jindalpolyester.com

http://www.jindalpoly.com 

 

 

Head Office / Corporate Office :

Plot No 12, Sector B-1, Local Shopping Complex, Vasant Kunj, New Delhi - 110070, India

Tel. No.:

91-11-26139256-65

Fax No.:

91-11-26125739

E-Mail :

jindalpolyester@jindalgroup.com

 

 

Factory 2:

28th K.M. Stone, Nashik-Igatpuri Road, NH – 3, Village Mundhegaon, Taluka Igatpuri District, Nashik - 422403,  Maharashtra, India

Tel. No.:

91-2553-285402 / 285405

Fax No.:

91-2553-285403

 

 

Factory 3 :

160/1/7, Amboli Road, Village Kala, Khanvel, Silvassa ( UT of D and N ), India

Tel. No.:

91-2638-247264 / 358

 

 

Export Sales Office :

BOPP and PET Films

Tel. No.:

91-11-26121798

Fax No.:

91-11-26125739

E-Mail :

jindal_export@jindalgroup.com

 

 

Domestic Sales Office :

PET Films

Tel. No.:

91-11-26125723

Fax No.:

91-11-26125739

E-Mail :

pet_mkt@jindalgroup.com

 

 

DIRECTORS

 

AS ON 31.03.2012

 

Name :

Mr. Rashid Jilani

Designation :

Non-Executive Independent Director

Date of Birth :

08.10.1941

Qualification : 

M.Com., C.A. I. I.B.

Experience :

40 years of experience in Banking, Finance and Working Capital Management. He is former Chairman of Punjab National Bank

Date of Appointment :

29.09.2007

DIN No.:

00010624

 

 

Name :

Mr. Jogesh Bansal

Designation :

Non-Executive Independent Director

Date of Birth :

03.04.1952

Qualification : 

B.A

Date of Appointment :

20.09.2008

Other Directorship :

·         International Technotex Private Limited

·         South West Probuild Private Limited

 

 

Name :

Mr. R K Pandey

Designation :

Non-Executive Independent Director

Date of Birth :

20-01-1940

Qualification : 

M.Com, LLB, FCS

Date of Appointment :

30-09-2009

Other Directorship :

·         PTC Industries Limited

·         Precise Laboratories Private Limited

·         British Health Care Private Limited

·         Welcure Drugs and Pharmaceutical Limited

·         Shree Rajasthan Synthex Limited

·         Hanug Toys and Industries Limited

·         Amar Ujala Publications Limited

·         Kamdhenu Ispat Limited

·         Mefcom Capital Market Limited

·         Morgan Venture Limited

·         Richo India Limited

·         Sanghi Industries Limited

·         Ventura Strategic Mgt. Solution Private Limited

·         Kanpur Fertilizer and Cement Limited

·         Jaypee Uttarbharat Vikas Private Limited

 

 

Name :

Mr. Sameer Banerjee

Designation :

Whole Time Director (Marketing)

Date of Birth :

10.07.1951

Qualification : 

B.Sc, M.B.A.

Date of Appointment :

25.08.2008

 

 

Name :

Mr. Rathi Binod Pal

Designation :

Whole Time Director

Date of Birth :

18.03.1969

Qualification : 

B.Com, C.A. (Inter)

Date of Appointment :

17.12.2009

 

 

Name :

Mr. Hemant Sharma

Designation :

Whole Time Director and Chief Executive Officer

Date of Birth :

23.04.1963

Qualification : 

B. Text. Hons. (Textile) MBA (Marketing)

Experience :

27 years of industrial experience in sales, marketing, strategic business development, operation and restructuring.

Date of Appointment :

01.04.2012

DIN No.:

05235723

Other Directorship :

Jindal Poly Investment and Finance Company Limited

 

 

KEY EXECUTIVES

 

Name :

Mr. Ajit Mishra

Designation :

Company Secretary

Qualification :

B.Com, LLB, ACS

 

 

Name :

Mr. L.P. Soni

Designation :

Chief Financial Officer

 

 

SHAREHOLDING PATTERN

 

AS ON 31.12.2012

 

Category of Shareholder

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

1313200

3.12

http://www.bseindia.com/include/images/clear.gifBodies Corporate

30065552

71.50

http://www.bseindia.com/include/images/clear.gifSub Total

31378752

74.63

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

31378752

74.63

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

898571

2.14

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

2139973

5.09

http://www.bseindia.com/include/images/clear.gifSub Total

3038544

7.23

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

1448883

3.45

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 million

5448291

12.96

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 million

435988

1.04

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

297255

0.71

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

245206

0.58

http://www.bseindia.com/include/images/clear.gifTrusts

108

0.00

http://www.bseindia.com/include/images/clear.gifClearing Members

51941

0.12

http://www.bseindia.com/include/images/clear.gifSub Total

7630417

18.15

Total Public shareholding (B)

10668961

25.37

Total (A)+(B)

42047713

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

42047713

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Polyester Resin, Polyester Filament Yarn, Polyester Chips and Biaxially Oriented Polyester Film.

 

PRODUCTION STATUS (AS ON 31.03.2011):

 

Particulars

Unit

*Licensed Capacity

*Installed Capacity

Actual Production

Polyester Filament Yarn

MT

54000

54000

----

Polymer Chips

MT

191000

180800

109827.798

Biaxially Oriented Polyester/ Polypropylene Film

MT

296000

296000

225470.385

 

*As certified by the management but not verified by the Auditors, being the technical matter. Film Production Includes 159,954 Mt. under the Mega Project Scheme.

 

 

GENERAL INFORMATION

 

No. of Employees :

1000 (Approximately)

 

 

Bankers :
  • Punjab National Bank
  • State Bank of India
  • State Bank of Patiala
  • Axis Bank Limited
  • Hongkong and Shanghai Banking Corporation Limited
  • The Bank of Nova Scotia
  • DBS Bank Limited
  • AKA, Ausfuhrkredit-Gesellschaft mbH, Frankfurt, Germany
  • Commerzbank, Aktiengesellschaft Frankfurt, Germany
  • Standard Chartered Bank

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Foreign Currency Loans – From Banks

2566.187

2953.15

Working Capital Loan

646.655

947.332

TOTAL

3212.842

3900.482

 

Notes on Secured Loans :

 

Term loans from banks are secured by first pari-pasu equitable mortgage of immovable properties of the company situated at Gulaothi (U.P). and Nasik (Maharashtra) and hypothecation of all movable assets (save and except book debts) subject to prior charge of the banks for working capital requirements.

 

Foreign currency term loans from AKA Ausfuhrkredit-Gesellschaft mbh Germany and Commerzbank Germany are guaranteed by HERMES Kreditversicherungs-Aktiengesellschaft Germany.

 

The above foreign currency loans are repayable on yearly/half yearly basis and the last repayment is due in September,2017.

 

Secured Working Capital Loans from banks are secured by way of  hypothecation of all stocks of raw materials, semi finished goods, finished goods, goods in transit, stores and spares and book debts of the company. These are further secured by way of second pari-pasu charge on immovable properties of the company situated at Gulaothi (U.P.) and Nasik (Maharashtra)

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kanodia Sanyal and Associates

Chartered Accountants

 

 

Associates :

·         Jindal India Powertech Limited

·         Rexor Holding SAS (W.e.f 29.03.2012)

       (Formerly Known as Jindal France SAS

 

 

Companies/Individuals/

Associates :

 

·         Soyuz Trading Company Limited

·         Rishi Trading Company Limited

·         Consolidated Photo and Finvest Limited

·         Jindal Photo Investment Limited

·         Consolidated Finvest and Holding Limited

·         Jindal Photo Limited

·         Jasmin Investment Limited

·         Consolidated Finance  and Investment Limited

·         Passion Tea Private Limited

·         Anchor Image and Films Private Limited

·         Jindal India Limited

·         Universal Foils Limited

 

 

Subsidiaries :

·         Hindustan Thermal Power Generation Limited (Formerly Hindustan Polysters Limited)

·         Jindal Solar Rajasthan Limited

·         Jindal Solar Powertech Limited

·         Jindal Poly Films Investment Limited

·         Jindal Metal and  Mining Limited

·         Haldia Synthetic Rubber Limited

·         Jindal Resources (Mozambique) Lda

·         Trans Indian Mining Lda

·         Jindal Metal and Mining International Limited (w.e.f.15.08.2011)

·         jindal Poly Finance Limited (w.e.f 13.05.2011)

·         Rexor Holding SAS (Up to 28.03.2012) (Formerly Known as Jindal France SAS)

·         Rexor SAS ( Up to 28.03.2012)

 

 

CAPITAL STRUCTURE

 

AS ON 29.09.2012

 

Authorised Capital : Rs. 2050.000 millions

 

Issued, Subscribed & Paid-up Capital : Rs. 460.423 millions

 

 

AS ON 31.03.2012

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

105000000

Equity Shares

Rs.10/- each

Rs.1050.000  Millions

100000000

Preference Shares

Rs.10/- each

Rs.1000.000  Millions

 

TOTAL

 

Rs.2050.000  Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

43021855

Equity Shares

Rs.10/- each

Rs. 430.219 Millions

 

 

 

 

 

Notes on Share capital:

 

Reconciliation of Shares outstanding at the beginning and at the closing of the reporting period:

 

Particulars

31.03.2012

 

No. of Shares

Opening Balance

46.042

Add: Issue by way of bonus shares

0.000

Less: Buyback of equity shares

3.020

Closing Balance

43.021

 

Details of each shareholder holding more than 5 percent shares specifying the number of shares held.

 

Name of Shareholder

31.03.2012

 

No. of Shares

%

Jindal Photo Investments Limited

 

11450302

26.62

Soyuz Trading Company Limited

11848266

27.54

Rishi Trading Company Limited 

4999056

11.62

 

23,021,138 Equity Shares were issued as Bonus Shares by way of utilization of Capital Redemption Reserves during the last financial year 2010-11 in the ratio of 1:1.

 

The Company has bought back following equity shares during last five years:

 

Financial Year

No. of Shares

2008-2009

2271735

2009-2010

2803007

2011-2012

3020421

 

 

Pursuant to the approval of the Board of Directors of the Company, for buyback of equity shares U/s 77A of the Companies Act, 1956 being less then 10% of Paid up capital and free reserve, during the financial year 2011-12. Company has bought back 3,020,421 equity shares and extinguished the same. A total of 3,020,421 equity shares were bought back and extinguished during the year ended 31st March 2012 through open market for an aggregate amount of Rs. 528.149 by utilizing the security premium and general reserve to the extent of Rs. 497.944 and Rs. 30.204 respectively. The Capital redemption reserve has been credited out of general reserve for Rs 30.204 millions being the nominal value of the share bought back U/s. 77A of he Companies act, 1956.

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

430.219

460.423

230.211

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

16775.392

16024.713

10462.146

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

17205.611

16485.136

10692.357

LOAN FUNDS

 

 

 

1] Secured Loans

3212.842

3900.482

4253.935

2] Unsecured Loans

1142.422

158.596

504.302

TOTAL BORROWING

4355.264

4059.078

4758.237

DEFERRED TAX LIABILITIES

1625.322

1784.736

1665.736

 

 

 

 

TOTAL

23186.197

22328.950

17116.330

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

12936.262

12173.648

12137.058

Capital work-in-progress

489.451

538.646

680.987

 

 

 

 

INVESTMENT

6227.695

5726.546

1756.333

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2015.686

2613.501
2007.792

 

Sundry Debtors
1667.670

2375.476
611.119

 

Cash & Bank Balances
160.115

229.167
899.224

 

Other Current Assets
1299.867

1171.651
0.000

 

Loans & Advances
1292.812

775.982
1145.089

Total Current Assets
6436.150

7165.777

4663.224

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
1115.644

986.260
974.258

 

Other Current Liabilities
1623.568

1990.536
810.176

 

Provisions
164.149

298.871
336.838

Total Current Liabilities
2903.361

3275.667

2121.272

Net Current Assets
3532.789

3890.110

2541.952

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

23186.197

22328.950

17116.330

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

23643.961

27462.355

15909.949

 

 

Other Income

186.333

109.699

461.867

 

 

TOTAL                                    

23830.294

27572.054

16371.816

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

15590.966

14168.804

 

 

Changes in inventories of finished goods, work-in-progress and

Stock-in-Trade

271.491

(344.503)

 

 

 

Employee benefit expenses

301.371

241.683

 

 

 

Other Expenses

3994.523

3834.405

 

 

 

TOTAL                        

20158.351

17900.389

12271.440

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

3671.943

9671.665

4100.376

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

261.371

204.387

280.949

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

3410.572

9467.278

3819.427

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                    

880.855

842.326

804.370

 

 

 

 

 

 

PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX

2529.717

8624.952

3015.057

 

 

 

 

 

Less

EXCEPTIONAL ITEMS

743.270

(61.217)

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX

1786.447

8686.169

3015.057

 

 

 

 

 

Less

TAX                                                                 

415.652

2759.611

931.221

 

 

 

 

 

 

PROFIT AFTER TAX    

1370.795

5926.558

2083.836

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

4128.859

3336.080

2020.691

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Equity Shares

105.119

115.106

230.212

 

 

Transfer to General Reserve

17.053

5000.000

500.000

 

 

Tax on Proposed Dividend

500.000

18.673

38.235

 

BALANCE CARRIED TO THE B/S

4877.482

4128.859

3336.080

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

(5813.766)

(7179.030)

3081.640

 

TOTAL EARNINGS

5813.800

7209.380

10260.67

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

3414.112

4462.422

3243.536

 

 

Stores & Spares

274.440

187.745

78.236

 

 

Capital Goods

1029.761

365.058

1389.571

 

TOTAL IMPORTS

4718.313

5015.225

4711.343

 

 

 

 

 

 

Earnings Per Share (Rs.)

30.35

128.72

45.15

 

 

 

QUARTERLY RESULTS

 

PARTICULARS

30.06.2012

30.09.2012

31.12.2012

 

1st  Quarter

2nd  Quarter

3rd Quarter

Net Sales

6109.100

5768.700

4979.900

Total Expenditure

5350.200

5173.700

4932.800

PBIDT (Excl OI)

758.900

595.000

47.100

Other Income

45.600

223.000

52.000

Operating Profit

804.500

818.000

99.100

Interest

74.400

89.000

81.300

Exceptional Items

(330.300)

210.600

(116.500)

PBDT

399.800

939.600

(98.700)

Depreciation

160.800

244.100

244.200

Profit Before Tax

91.000

695.500

(342.900)

Tax

0.000

60.200

(54.700)

Provisions and contingencies

69.900

0.000

0.000

Profit After Tax

(4.400)

635.300

(288.300)

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

(6.700)

Net Profit

65.500

635.300

(295.000)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
5.75
21.49
12.73

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
7.56
31.63
18.95

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
9.22
44.91
17.95

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.10
0.53
0.28

 

 
 
 
 

Debt Equity Ratio

(Total Debt/Networth)

 
0.25
0.25
0.45

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
2.22
2.19
2.20

 

 

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

 

 

UNSECURED LOAN

 

Particulars

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Working Capital Loan

1142.422

158.596

TOTAL

1142.422

158.596

 

 

FINANCIAL PERFORMANCE

 

Jindal Poly Films reported a total revenue of Rs. 23830.200 Millions as compared to Rs. 27572.000 Millions in previous year. The Profit After Tax stood at Rs. 1370.800 Millions (last year Rs. 5926.600 Millions giving an EPS of Rs. 303.500 Millions (last year was 1287.200 Millions)

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

OVERVIEW

 

Jindal Poly Films Limited (JPFL) is a producer of high performance Polyester and BOPP films (plain and metallized) mainly used for the flexible packaging industry. The Company’s manufacturing facility at Nasik is the worlds single largest location factory for producing these plastic films. The Company’s manufacturing units are amongst the most modern facilities available and are capable of producing high quality products.

 

 

INDUSTRY, STRUCTURE and DEVELOPMENTS

 

FLEXIBLE PACKAGING FILM

 

Flexible packaging typically includes materials such as plastic films, paper and aluminium foil. Over the years, BOPET Film and BOPP Film (forms of plastic-based flexible packaging film) have become the preferred choice for packaging consumer articles including food and clothing. Besides such films, JPFL also offers a range of metallised and coated film products to its customers.

 

JPFL is the leading producer of flexible packaging films in the country. The Company also maintains a strong presence as a key exporter to several countries. Flexible packaging film follows a business-to-business model, supplying base film to key  converters/processors - who in turn sell the value added product to customers.

 

BOPET FILM

 

BOPET Film is a versatile product broadly classified according to thickness of the film. Thick Films (50-350 microns in thickness) find application in photographic/X-ray, electronics, printing, textile, pre-press back up films for photo voltaic cells used for generating solar power and office supplies, motor insulations and document lamination. Thin Films (10-36 microns in thickness) are used in flexible packaging metallic yarn, cables, transformers, capacitors, audio/video tape, hot stamping foils, release films, decorative ribbons and labels. JPFL has a capacity to manufacture 1,27,000 TPA of BOPET Film, in the current financial year 2012-13. One more thin BOPET film line of a capacity of 30,000 TPA is planned for startup in the fourth quarter of 2013

 

BOPP FILM

 

Better moisture retention properties render BOPP Film more suitable for food products like snack foods, biscuits, pasta, dried foods and meat. Further, BOPP Film also finds application in wrapping cigarette cartons, ready-made garment bags,  adhesive tapes and print lamination.

 

The market for BOPP Film in India, unlike the rest of the world is underdeveloped, due to existence of popular low quality, cheap alternative in the form of TQPP (Tubular Quenched Polypropylene Film) which is being replaced by BOPP. Growing preference for premium and sophisticated packaging however is driving growth in India with increased availability of BOPP, TQPP is being fast replaced by BOPP.

 

In current financial year, the Company has commissioned and started production its sixth line with a capacity of 30,000 TPA, thus the combined capacity is 2,10,000 TPA

 

METALLISED FILMS

 

Vacuum deposition of Aluminum on BOPET and BOPP films increases the barrier properties of such films. Besides flexible packaging moralized BOPET films is used for metallic yarn. Metallised BOPP is widely used for gift wrapping. In the last few years metallised polyester film has found application in sequins for the textile industry for sarees and dress material for women’s wear.

 

COATED FILMS

 

PVDC coated BOPP and BOPET films are used in the flexible packaging industry. The Company has a capacity of 4500 TPAto manufacture PVDC, Acrylic and LTS coated films. During the current financial year the Company’s silicon coating and other coated films have found wide range of applications in the label stock and flexible packaging industry. The Company expects to enhance capacity utilization in 2012-13.

 

POLYESTER CHIPS

 

JPFL has the in-house ability to manufacture polyester (BOPET) chips as per the product requirement, for its BOPET Film business. The Company has installed capacity of 1,76,400 TPA at Nashik, Maharashtra.

 

 

SEGMENT PERFORMANCE

 

FLEXIBLE PACKAGING FILM

 

The flexible packaging turnover has decreased from 29067.600 Millions (2010-11) to 23644.000 Millions (2011-12) which is mainly attributable to fall in BOPET films price.

 

 

OUTLOOK FLEXIBLE PACKAGING FILM

 

India is leading the growth in the global flexible packaging films, growing at above 18% per annum over the last few years. This growth is powered by increased penetration of packaged food and personal products in to the semi urban and rural segment. In tier 2 and tier 3 cities, the average pack sizes are usually smaller than the pack sizes in tier 1 cities. This results in increased use of flexible packaging consumption in the FMCG industry. As the Government is increasing its spending in the rural economy, increased demand for FMCG products is experienced in the hinter lands of India. The growth is likely to intensify in the next 2 – 3 years.

Growth in the flexible packaging industry is also aided by increase in the export of packaging material to high cost countries in Europe and the U.S.A.

 

BOPET FILMS

 

Over the last ten years, the dominance of the four leading producers – TORAY, DUPONT-TEIJIN, MITSUBISHI and SKC has been challenged by a new emerging breed of producers in India and China. These companies including Jindal Poly Films have identified an opportunity to gain market position through investment in low cost and highly efficient modern thin film extrusion plants and in doing so, have found their way in to the exclusive club of large producers.

 

BOPP FILMS

 

The BOPP film market in India is increasing owing to increased consumption in food packaging and large growth in textile packaging. Almost two thirds of the world’s production of BOPP is consumed in food packaging. In India the consumption for food packaging is only one third of production. This gap is rapidly being bridged as the customers are increasing displaying a strong preference for hygienically packed food products.

 

Combined with a robust growth in ready to wear apparels, the Indian BOPP film industry is expected to grow at over 15% per annum over the next 3 years.

 

 

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER & NINE MONTHS 31ST DECEMBER, 2012

 (Rs. in Millions)

S.No

Particulars

Quarter ended

Quarter ended

Nine Month ended

31.12.2012

30.09.2012

31.12.2012

(Unaudited)

(Unaudited)

(Unaudited)

1.

Income from Operations

 

 

 

 

(a) Net Sales/Income from Operations (Net of Excise Duty)

4850.200

5671.700

16457.300

 

(b) Other Operating Income

129.700

134.500

437.800

 

Total Income from Operations (Net)

4979.900

5806.200

16895.100

2.

Expenses

 

 

 

a.

Consumption of Raw Materials

3845.900

4259.300

12302.100

b.

Purchase of stock in trade

 

 

 

c.

Changes in inventories of finished goods,Work in progress and Stock- in- trade

65.000

(231.000)

(153.300)

d.

Employees Cost

115.200

77.300

265.300

e.

Power & Fuel

544.900

607.200

1685.300

f.

Depreciation

244.200

244.100

727.300

g.

Other Expenditure

361.800

440.700

1337.200

 

Total Expenses

5177.000

5397.600

16163.900

3.

Profit from Operations before other income, Finance cost and Exceptional items (1-2)

(197.100)

408.700

731.200

4.

Other Income

52.000

165.300

263.000

5.

Profit from ordinary activities before finance costs and Exceptional items (3+4)

(145.100)

574.100

994.200

6.

Finance Costs

81.300

89.000

244.700

7.

Profit from ordinary activities after finance costs but before Exceptional items (5-6)

(226.400)

485.000

749.500

8.

Exceptional items

(116.500)

210.500

(236.400)

9.

Profit/Loss from ordinary activites before tax (7+8)

(342.900)

695.500

513.100

10.

Tax Expense

 

 

 

 

- Provision - Income Tax

(50.000)

3.500

66.700

 

- Deferred Tax

(4.700)

56.700

29.800

 

Total Tax Expense

(54.700)

60.200

96.500

11.

Net Profit from ordinary activities after tax (9-10)

(288.300)

635.300

416.700

12.

Extraordinary items    (Net of Tax Expense)

 

 

 

13.

Loss from discontinuing operations(Net of Taxes)

(6.700)

(4.800)

(16.000)

14.

Net Profit for the period (11-12)

(295.000)

630.500

400.700

15.

Add : Share of Profit /(Loss) in Associates

NA

NA

NA

16.

Less : Share of Profit/(Loss) of Minority

NA

NA

NA

17.

Net Profit after Share in Minority/ Associates

(295.000)

630.500

400.700

18.

Paid up Equity Share Capital ( Face Value Rs. 10/- each)

420.500

420.500

420.500

19.

Reserves excluding revaluation reserves

 

 

 

20

Basic/Diluted EPS (Not annualised/Rs.)

 

 

 

 

Before Extraordinary Items

(7.02)

14.99

9.50

 

After Extraordinary Items

(7.02)

14.99

9.50

A

1

PARTICULARS OF SHARE HOLDING Public Shareholding

 

 

 

 

No of Equity Shares

10668961

10668961

10668961

 

% of Share holding

25.37%

25.37%

25.37%

2

Promoters and Promoter Group Shareholding a) Pledged / Encumbered

 

 

 

 

- Number of Equity shares

Nil

Nil

Nil

 

- % of shares (of the total shareholding of promoter and promoter

NA

NA

NA

 

group)

 

 

 

 

- Percentage of shares (of the total share capital of the company)

NA

NA

NA

 

b) Non - encumbered

 

 

 

 

- Number of Equity shares

31378752

31378752

31378752

 

- % of shares (of the total shareholding of promoter and promoter

100%

100%

100%

 

group)

 

 

 

 

- Percentage of shares (of the total share capital of the company)

74.63%

74.63%

74.63%

 

B

INVESTOR COMPLAINTS :

Pending at the beginning of the quarter

Received during the quarter

Disposed of during the quarter

Remaining unresolved at the end of the quarter

 

Nil

10

10

Nil

 

 

Notes :

 

The above results are stand alone and reviewed by the Audit Committee and taken on record at the meeting of the Board of Directors held on 13th February, 2013, and limited review of the same has been carried out by the statutory auditors of the Company.

 

The Company has only one reportable business segment , namely, Flexible Packaging Films.

 

The company has not exercised the option provided by the Ministry of corporate affairs (MCA ) vide its notification no G.S.R.378(E) dated 11th May,2011, and continued to adjust profit/loss due to exchange difference on long term foreign currency loans taken for fixed assets in the profit and loss account as per Accounting Standard (AS-11) on "Effects on change in Foreign Exchange Rates" and the same amounts to a loss of Rs 116.500 millions during the quarter and is shown under the head "Exceptional items".

 

A dividend of 25 % i.e. Rs 2.50 per Equity Shares amounting to Rs 105.100 millions in respect of Financial Year 2011-12 was declared at 38th Annual General Meeting held on 29th September 2012 being distributed w.e.f from 12th October 2012 onwards.

 

The Board of Directors in their meeting held on 26th November, 2012 has approved a scheme of demerger of investment division of the company into Jindal Poly Investment and Finance Company Ltd. a wholly owned subsidiary of the company. Hon'ble High Court of Allahabad vide its order dated 17th January, 2013 has directed to convene the meeting of Equity Shareholders, Secured Creditors and Unsecured Creditors of the Company on 8th March, 2013.

 

Tax liability/provision written off is based upon the estimated tax computation for the whole year and excess/short provision will be adjusted in the last quarter.

 

 

FIXED ASSETS

 

·         Land (Freehold)

·         Factory Buildings

·         Other Buildings

·         Plant and Machinery

·         Furniture and Fixture

·         Office Equipments

·         Computers

·         Vehicles

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.54.11

UK Pound

1

Rs.80.84

Euro

1

Rs.70.55

 

 

INFORMATION DETAILS

 

Report Prepared by :

MRI

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--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

NO

--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

-

 

 

 

 

 

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

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