MIRA INFORM REPORT
|
Report Date : |
13.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
POLYPLEX CORPORATION LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
18.10.1984 |
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Com. Reg. No.: |
20-011596 |
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Capital
Investment / Paid-up Capital : |
Rs. 325.632 Millions |
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CIN No.: [Company Identification
No.] |
L25209UR1984PLC011596 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELP08882G |
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PAN No.: [Permanent Account No.] |
AAACP0278J |
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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
: |
Manufacturer, Importer and Exporter of Polyester Films, Polyester
Chips and Solar PV Modules. |
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No. of Employees
: |
1480 (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 15000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having a good track
record. There appears slight dip in profitability and sales turnover during
the current year. However, the general financial position of the company seems to be
strong. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered for normal 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 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
A1 (Short Term Rating) |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of
financial obligation. It carry lowest credit risk. |
|
Date |
January 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
|
|
Tel. No.: |
91-5943-250136/ 250165/ 166/ 250285/ 286 |
|
Fax No.: |
91-5943-250281/ 250069 |
|
E-Mail : |
investorrelations@polyplex.com
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|
Website : |
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|
Corporate Office : |
B-37, Sector I, Noida, District – Gautam Budh Nagar – 201 301, Uttar
Pradesh |
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Tel. No.: |
91-120-2443716 to 19 |
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Fax No.: |
91-120-2443723 / 24 |
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E-Mail : |
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Factory 2 : |
Plot No. 227 MI- |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Sanjiv Saraf |
|
Designation : |
Chairman |
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|
Name : |
Mr. S. G. Subrahmanyan (Upto December 27, 2011) |
|
Designation : |
Vice Chairman |
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|
Name : |
Mr. Brij Kishore Soni |
|
Designation : |
Director |
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Name : |
Air Chief Marshal O. P. Mehra (Retd.) |
|
Designation : |
Director |
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Name : |
Mr. Sanjiv Chadha |
|
Designation : |
Director |
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Name : |
Dr. Suresh Inderchand Surana |
|
Designation : |
Director |
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Name : |
Mr. Jitender Balakrishan |
|
Designation : |
Director |
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Date of Appointment: |
20.07.2010 |
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|
|
|
Name : |
Mr. Ravi Kumar |
|
Designation : |
Nominee Director – IDBI Bank Limited |
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|
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|
Name : |
Mr. Pranay Kothari |
|
Designation : |
Executive Director |
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Qualification : |
B.Com (H), FCA, ACS |
|
Date of Appointment : |
01.08.1985 |
|
|
|
|
Name : |
Mr. Ranjit Singh |
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Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. Ashok Kumar Gurnani |
|
Designation : |
Company Secretary and Compliance Officer |
|
|
|
|
Name : |
Mr. Manish Gupta |
|
Designation : |
Chief Financial Officer |
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 |
|
|
|
|
|
|
|
|
1802202 |
5.63 |
|
|
60 |
-- |
|
|
60 |
-- |
|
|
1802262 |
5.63 |
|
|
|
|
|
|
13158134 |
41.14 |
|
|
50138 |
0.16 |
|
|
50138 |
0.16 |
|
|
13208272 |
41.30 |
|
Total shareholding of Promoter and Promoter Group (A) |
15010534 |
46.93 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2970306 |
9.29 |
|
|
9882 |
0.03 |
|
|
865914 |
2.71 |
|
|
3846102 |
12.02 |
|
|
|
|
|
|
3605298 |
11.27 |
|
|
|
|
|
|
4268569 |
13.35 |
|
|
1622988 |
5.07 |
|
|
3631109 |
11.35 |
|
|
3349902 |
10.47 |
|
|
2400 |
0.01 |
|
|
2250 |
0.01 |
|
|
3584 |
0.01 |
|
|
272973 |
0.85 |
|
|
13127964 |
41.04 |
|
Total Public shareholding (B) |
16974066 |
53.07 |
|
Total (A)+(B) |
31984600 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
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|
- |
- |
|
Total (A)+(B)+(C) |
31984600 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Importer and Exporter of Polyester Films, Polyester
Chips and Solar PV Modules. |
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Products : |
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PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Plastic Film |
MT |
88900 |
-- |
|
Polyester Chips |
MT |
77600 |
-- |
|
|
|
|
|
|
Plastic Film |
|
|
|
|
Net Production** |
MT |
-- |
65880*** |
|
Packed Production**** |
MT |
-- |
65331 |
|
Polyester Chips |
|
|
|
|
Polyester Chips**** |
MT |
-- |
53791 |
* As certified by management.
** Includes 11,661 MT (Previous Year – 1,453 MT) of production on Job work basis.
*** Captive consumption 3,937 MT (Previous Year – 2,474 MT).
**** Includes 124 MT (Previous Year – 398 MT) purchased and reprocessed, excludes NIl (Previous Year – 524 MT) of purchased film.
***** Captive consumption of 32,615 MT (Previous Year – 15,691 MT) inclusive 3,924 MT (Previous Year – 72 MT) on Job work.
GENERAL INFORMATION
|
No. of Employees : |
1480 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
Loans are secured
as under: The Foreign Currency Term Loans of Rs. 2732.285 millions (Previous Year – Rs. 1825.357 millions) and Rupee Term Loans of Rs. 187.500 millions (Previous Year – Rs. 796.200 millions) are to be secured on a pari passu basis by a equitable mortgage in respect of Company’s immovable properties at Khatima and Bajpur, both present and future. The Rupee Term Loans include Rs. 480.000 millions (Previous Year – Rs. 600.000 millions ) availed from IDBI Bank Limited is secured by exclusive charge by way of equitable mortgage of Immovable Property at Noida. Other Loans of Rs. 0.134 millions (Previous Year – Rs. 0.678 millions) from Banks are secured by hypothecation of Vehicles purchased therefrom. Loans are repayable
as under:
Short Term Borrowing in the form of Buyer’s Credit from Banks aggregating to Rs. 109.098 millions (Previous Year – Rs. 301.169 millions) are secured on a pari passu basis by a equitable mortgage in respect of Company’s immovable properties at Khatima and Bajpur, both present and future. Short Term Borrowing in the form of Working Capital Loans & Buyer’s Credit from Banks aggregating to Rs. 374.794 millions (Previous Year – Rs. 689.348 millions) are secured/to be secured by way of hypothecation of inventories, book debts and other current assets both present and future, besides second charge on Company’s immovable properties at Khatima and Bajpur. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
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Subsidiaries : |
|
|
Enterprises over which Key Management Personnel, their relatives and
major shareholders have significant influence : |
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CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
34000000 |
Equity Shares |
Rs. 10/- each |
Rs. 340.000 Millions |
|
|
|
|
|
Issued, Subscribed
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33180300 |
Equity Shares |
Rs. 10/- each |
Rs. 331.803
Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
31984600 |
Equity Shares |
Rs. 10/- each |
Rs. 319.846
Millions |
|
|
ADD: Share Forfeiture Account |
|
Rs. 5.786
Millions |
|
|
Total |
|
Rs. 325.632 Millions |
|
|
|
|
|
RECONCILIATION OF
NUMBER OF SHARES
|
|
No. of Shares |
|
Shares outstanding as at the beginning of the year |
31984600 |
|
Additions during the year (Bonus Shares) |
0.000 |
|
Shares outstanding as at the end of the year |
31984600 |
SHAREHOLDERS HOLDING MORE
THAN 5% SHARES
|
|
As at March 31, 2012 No. of Shares |
|
Mahalaxmi Trading & Investment Company Limited |
7622390 |
|
Secure Investments Limited |
5535744 |
|
ICICI Prudential (Tax Plan + Child Care Plan) |
1837689 |
|
Mr. Ricky Ishwardas Kirpalani |
1604663 |
AGGREGATE NUMBER OF
EQUITY SHARES ALLOTED AS
FULLY PAID UP BY WAY
OF BONUS SHARES
|
2010-2011 |
2009-2010 |
2008-2009 |
2007-2008 |
2006-2007 |
|
15992300 |
- |
- |
- |
- |
RIGHTS ATTACHED TO
THE SHARES
The Company has only one class of Equity Shares of par value of Rs.10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.
In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount and the remaining balance is distributed in proportion to the number of Equity Shares held by the Equity Shareholders.
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
325.632 |
325.632 |
165.709 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3474.253 |
2857.003 |
1623.708 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3799.885 |
3182.635 |
1789.417 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3151.235 |
3641.024 |
4480.895 |
|
|
2] Unsecured Loans |
142.428 |
0.000 |
93.909 |
|
|
TOTAL BORROWING |
3293.663 |
3641.024 |
4574.804 |
|
|
DEFERRED TAX LIABILITIES |
128.039 |
428.150 |
295.079 |
|
|
|
|
|
|
|
|
TOTAL |
7221.587 |
7251.809 |
6659.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5799.456 |
5794.362 |
5796.644 |
|
|
Capital work-in-progress |
21.224 |
136.751 |
195.131 |
|
|
|
|
|
|
|
|
INVESTMENT |
387.847 |
241.585 |
200.585 |
|
|
Foreign Currency Monetary Item |
0.000 |
0.000 |
1.811 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1146.776
|
1382.326 |
601.324 |
|
|
Sundry Debtors |
394.353
|
765.619 |
220.339 |
|
|
Cash & Bank Balances |
557.648
|
75.827 |
104.456 |
|
|
Other Current Assets |
10.609
|
5.765 |
0.000 |
|
|
Loans & Advances |
555.673
|
611.099 |
639.575 |
|
Total
Current Assets |
2665.059
|
2840.636 |
1565.694 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
144.445
|
341.924 |
405.461 |
|
|
Other Current Liabilities |
1351.649
|
1153.570 |
233.166 |
|
|
Provisions |
155.905
|
266.031 |
461.938 |
|
Total
Current Liabilities |
1651.999
|
1761.525 |
1100.565 |
|
|
Net Current Assets |
1013.060
|
1079.111 |
465.129 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7221.587 |
7251.809 |
6659.300 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8971.956 |
9453.358 |
2415.522 |
|
|
|
Other Income |
1499.998 |
418.648 |
786.994 |
|
|
|
TOTAL (A) |
10471.954 |
9872.006 |
3202.516 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
6004.898 |
4872.119 |
|
|
|
|
Purchase of stock-in-trade changes in inventory |
266.143 |
334.047 |
|
|
|
|
Employee benefit expense |
426.902 |
470.025 |
|
|
|
|
Other expenses |
1496.595 |
1673.784 |
|
|
|
|
Exceptional items |
707.880 |
0.000 |
|
|
|
|
TOTAL (B) |
8902.418 |
6684.881 |
2241.354 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1569.536 |
3187.125 |
961.162 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
325.075 |
352.991 |
84.894 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1244.461 |
2834.134 |
876.268 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
736.985 |
322.142 |
103.669 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
507.476 |
2511.992 |
772.599 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(252.467) |
746.670 |
172.835 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
759.943 |
1765.322 |
599.764 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2176.883 |
961.665 |
572.088 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
76.000 |
178.000 |
61.000 |
|
|
|
Interim Dividend |
0.000 |
95.954 |
0.000 |
|
|
|
Corporate Dividend Tax- Interim Dividend |
0.000 |
15.937 |
0.000 |
|
|
|
Proposed Dividend |
127.938 |
223.892 |
127.938 |
|
|
|
Corporate Dividend Tax- Proposed Dividend |
20.755 |
36.321 |
21.249 |
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
2712.133 |
2176.883 |
961.665 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
2502.987 |
|
|
|
|
|
Dividend from Subsidiary Companies |
1397.128 |
353.772 |
|
|
|
|
Other Claims |
25.765 |
0.000 |
|
|
|
TOTAL EARNINGS |
3925.880 |
4123.237 |
561.440 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
638.169 |
972.723 |
561.868 |
|
|
|
Stores & Spares |
19.356 |
152.397 |
22.338 |
|
|
|
Capital Goods |
719.223 |
6.367 |
3064.094 |
|
|
|
Finished Goods |
0.000 |
0.000 |
85.091 |
|
|
TOTAL IMPORTS |
1376.748 |
1131.487 |
3733.391 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.)
|
|
|
|
|
|
|
Basic
|
23.76 |
55.19 |
18.75 |
|
|
|
Diluted |
23.76 |
55.19 |
18.67S |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
2188.400 |
2474.200 |
2458.400 |
|
Total Expenditure |
1963.000 |
2178.300 |
2218.000 |
|
PBIDT (Excl OI) |
225.400 |
295.900 |
240.400 |
|
Other Income |
183.700 |
55.800 |
31.800 |
|
Operating Profit |
409.100 |
351.700 |
272.200 |
|
Interest |
51.300 |
47.100 |
54.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
357.800 |
304.600 |
217.800 |
|
Depreciation |
193.500 |
201.900 |
202.900 |
|
Profit Before Tax |
164.300 |
102.700 |
14.900 |
|
Tax |
(07.600) |
21.800 |
(16.100) |
|
Provisions and Contingencies |
0.000 |
0.0001 |
0.000 |
|
Profit After Tax |
171.900 |
80.900 |
31.000 |
|
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 |
171.900 |
80.900 |
31.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
7.26
|
17.88 |
18.73 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.66
|
26.57 |
31.98 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.99
|
29.09 |
10.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.79 |
0.43 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.87
|
1.14 |
3.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.61
|
1.61 |
1.42 |
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 |
No |
|
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 |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN :
|
Particulars |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
Working Capital Demand Loans From Banks |
142.428 |
0.000 |
|
Total |
142.428 |
0.000 |
YEAR IN RETROSPECT :
During the year ,the company was able to maintain Consolidated Gross revenue by increasing sales volume despite sharp decline in selling prices and margins in PET Films in comparison to the exceptionally higher prices witnessed during the Previous Year. The fall in selling prices was due to creation of new PET Film capacity globally as also the ban imposed on usage of plastic films for packaging of Gutka and Pan Masala in India.
Consolidated Net Income (before taxes, exceptional items and minority interest) for the year under report Rs.2986.500 millions as against Rs.7784.100 millions during the Previous Year.
With a much stronger financial position on consolidated basis, the Company is implementing several new projects across Thailand, USA and Turkey. These new projects/locations are expected to provide further impetus to growth nd profitability in years to come besides enabling your Company to provide a much wider range of plastic films and resins to its customers.
MANAGEMENT DISCUSSION
AND ANALYSIS :
OVERVIEW :
Polyplex’s business is focused on producing high performance plastic films viz. Polyester Film (PET Film), viz. Biaxially Oriented Polypropylene Film (BOPP Film) and Cast Polyproylene Film (CPP Film) which are mainly used in the flexible packaging industry. Polyplex is one of the leading integrated producers of PET Films in the world. In the past few years, the Company has also ventured into downstream businesses like Silicone Coating and Extrusion Coating. As part of its concentric diversification strategy, the Company has decided to enter into the Thick PET Film business which will enable access to several new applications besides installing a Blown PP Film line in order to broaden the product range on its silicone coated films business. Further, Polyplex has successfully enhanced the capability of its oldest thin PET Film line at Khatima unit to produce PET Films with intermediate thickness of upto 150 microns as well as specialty co-extruded films, thereby increasing the product offering from India operations. More recently, the Company has decided to enter into a new but related business segment by commencing work on the setting up a manufacturing unit for Bottle Grade PET Resins.
PET Film is made from Polyester Resin (PET Chips), which in turn is produced from Purified Terephthalic Acid (PTA) & Mono- Ethylene Glycol (MEG). The Company produces its own PET Chips for captive consumption as well as for resale.
Polyplex largely produces PET Films for application in Packaging, Electrical and other Industrial segments like hot stamping foils, thermal lamination, cable wrap, release films, air conditioning ducts etc. Company’s product range is concentrated around Thin PET Films, which accounts for about three-quarters of the total global demand for PET Films, and does not participate in some of the other smaller end use segments like imaging, magnetic media and optical films.
Packaging being the largest business segment, the Company is now in a position to offer other substrates used in the flexible packaging industry. BOPP and CPP Films are Polypropylene (PP) based films, which are pre dominantly used in packaging besides certain industrial applications like tapes, labels, thermal lamination and textiles. Flexible packaging companies supply their laminates to consumer product companies for packaging of a diverse range of products like food products, household goods, personal care products, etc.
GLOBAL OPERATIONS :
Polyplex has attained a leadership position in the thin PET Films business with manufacturing facilities in India, Thailand and Turkey and a distribution set-up in USA and China.
Ignoring the intermediate investment holding entities, Polyplex Corporation Limited (PCL/Polyplex India) has a majority ownership of 51% in Polyplex (Thailand) Public Company Limited (PTL/ Polyplex Thailand) which in turn holds 100% of Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi (PE/Polyplex Europa) and Polyplex Trading (Shenzhen) Co. Limited (PTSL/Polyplex China). PTL also has a majority stake in Polyplex (Americas) Inc. (PA/Polyplex Americas).
With a view to further expand its global manufacturing footprint into North America, Polyplex has invested in the setting up a thin PET Film line, a continuous process PET chips plant and metallizing capacity in USA under Polyplex USA LLC (PU/Polyplex USA), which is a wholly owned subsidiary of Polyplex America Holdings Inc (PAH). PTL in turn holds 100% stake in PAH.
As a part of its concentric diversification strategy, PAPL has invested in Polyplex Resins Sanayi Ve Ticaret Anonim Sirketi (PR/Polyplex Resins), Turkey, which would shortly be engaging in the business of manufacturing and marketing Bottle Grade PET Resins and related products.
PET FILM BUSINESS :
The traditional method of segmenting the PET Films business has been Thin and Thick films based on distinct applications and lack of supply side substitutability. Thick Films generally refer to films with a thickness range of 50-350 micron whereas thin films are below 50 micron. In recent years, several intermediate thickness (23-150 micron) lines have also been installed.
Polyplex currently produces predominantly only Thin PET Films, which represents three-fourth of the overall global PET Film demand. The growth in packaging has over the years shifted the production and usage patterns of Thin PET Films. The Company’s relevant segments of Packaging, Industrial and Electrical constitute 99% of the total demand and the traditional high-end technology segments like magnetic media and imaging segments constitute only 1% of the total consumption of Thin PET Films due to technology evolution.
Polyplex has also decided to foray into the Thick PET Film segment by putting up a manufacturing line in Thailand, which is under implementation besides revamping its first film line in India to produce intermediate thickness as well as specialty films. This will enable Polyplex to straddle the entire spectrum of end-uses by accessing the traditional industrial and electrical applications for thick films as also targeting several new and promising applications in optical and photo-voltaic segments.
Better packaging not only improves the shelf life of the products but is also essential for improving product appeal in a highly competitive consumer goods industry. Flexible packaging also plays a key role in source reduction on the principle of ‘use less waste in the first place’ which has ensured higher-than-GDP growth in the flexible packaging industry across the globe. PET Film, being a higher-end preferred substrate within packaging, has grown more rapidly than other substrates, averaging between 8-10% per annum. Demand in packaging is quite resilient as it relates to consumption of food products and consumer staples which are to a large extent non-discretionary in nature. This moderated the impact of the global economic recessionary environment on the industry during the 2008 economic crisis, as compared with some of the other segments like industrial and electrical which had been impacted more and had witnessed a contraction in demand in 2008- 2009. The revival of demand growth between 2009 and 2011 has also been faster in the packaging application as compared to other applications of Thin PET Films.
An increase in the purchasing power in the developing countries has brought with it a rise in the per capita consumption of packaging material. As a result of this, Asia (excluding Japan and Korea), is the largest market for thin PET Films with half of the consumption in this region. At the same time, per capita consumption of packaging material in developing countries is still very low as compared to the mature markets. The key drivers of demand growth in these regions are the increase in the share of organized sector in retailing, increasing consumerism and lifestyle changes arising out of higher disposable incomes, need for brand differentiation, continuous product innovations, health awareness, favourable demographics and the resulting need for better and more convenient packaging.
A similar trend is also evident on the supply-side with most of the new capacities being added in low-cost developing countries. A large proportion of the new capacity is also focused on the packaging segment, with an emphasis on high productivity and low operating costs. This has adversely impacted the traditionally large producers of PET Film operating with high cost structures, who have chosen to concentrate in the emerging niche technologies in PET Films like films for LCDs, Solar Panels, Touch Screens and specific high-end applications within packaging. While trade defense measures like anti-dumping and countervailing duties have been frequently invoked, in an increasingly competitive market environment, they are unable to address the inherent problems of unproductive assets operating in the developed countries producing standard films.
During the year 2010, the Thin PET industry witnessed a Demand supply imbalance scenario in favor of suppliers due to inadequate matching capacity additions, new applications in Optical / Photovoltaic industry, demand growth of about 9% and closure of some old lines.
Due to this imbalance in demand-supply scenario, the selling prices of PET Films moved to historic highs. This in turn significantly improved the operating margins of most of the manufacturers in this industry. These exceptionally high margins attracted a lot of new investments in the Thin PET Film industry. Most of these capacity additions started commercial operations towards the second half of 2011 and first half of 2012. There are some more new projects, under implementation, which would commence production in the next 12 months.
As the capacity addition during FY 2011-12 has been much more than the increase in demand, the resultant situation of oversupply is expected to continue for another 18-24 months.
Global Thin PET Film growth rates are expected at about 8-10% in the year 2012, with the demand in India and Other Asia” growing at a higher rate of 10-12%. The overall capacity addition in FY 2012-13 is expected to be higher than the growth in demand but the actual timing of the additions will determine the duration of the excess supply situation. Companies with consistent quality products, diversified product portfolio, access to international customers and a robust supply chain model stand a better chance of participating in the market growth and improving/maintaining their margins above the industry averages.
BOPP AND CPP FILMS
BUSINESS :
The BOPP and CPP Film business are also witnessing similar dynamics. Growth in Asia especially China and India has been strong in the past and is expected to continue in the long-term. Bulk of the consumption and capacity for these products is now in the developing countries. However, these businesses are more regional in nature and therefore the regional demand-supply balances are more relevant. The Company is expected to benefit from the low cost of production from the high productivity BOPP line in India and the CPP line in Thailand as the long-term fundamentals of these investments continue to be good.
SILICONE COATING AND
EXTRUSION COATING BUSINESSES :
The Silicone coating business produces polyester release liner, which is used for carrying adhesive labels until these are removed from the release liner and are applied to the final surface. Other applications of siliconised polyester release liner include release liner for adhesive tapes, cast polymer materials, electronic applications, roofing and other industrial uses. The Company has expanded its capacity for this product range by commissioning a second coating plant in Thailand in FY 2011-12.
PTL has also ordered a Blown PP line which would enable better usage of the silicone coating facility and help broaden the product range by entering into the Peel & Stick liner segment for usage in the roofing market in United State of America (USA).
The Extrusion Coating Business involves the combination of PET/BOPP film with an extruded adhesive layer to produce a thermal lamination film. Thermal Lamination Film is used for the application of plastic film to the surface of another item like paper in order to improve the durability and give it an aesthetic appeal. The main uses of this are in teaching aids, maps, certificates, posters, menu cards, book covers, carton board boxes and food packaging. At present the Company has one extrusion coating facility in Thailand and considering the growth opportunities in this business the Company has decided to set up another extrusion coating plant at the same location.
USA and European Union (EU) are the main markets for the products from these businesses.
FLEXIBLE PACKAGING
INDUSTRY IN INDIA :
India is one of the biggest and rapidly growing flexible packaging markets in the world. In the year under review, demand was impacted adversely by the ban on plastic usage for Gutka and Pan Masala segments, imposed in early 2011.
The Thin PET Film market in India is estimated to be around 192,000 tonnes for the year 2011-12. During the current financial year, growth of 10-12% is expected on the back of sustained growth in the flexible packaging industry in India. The total capacity in India is about 450,000 tonnes with some of the surplus being exported to other parts of the world.
The BOPP market in India is estimated at about 180,000 tons for the year under review with a capacity base of 425,000 tons. Demand is expected to grow around 12% annually. Exports of converted product have increased in recent times aided by strengthening US Dollar vs INR.
The extent of excess supply in both PET and BOPP Films at optimum production levels is such that even with significant export volumes, the domestic industry is still likely to face underutilized capacity.
The results of this strategy are exhibited in the successful growth achieved by the Company over the years. Despite the challenging environment, the Company continues to identify attractive avenues for growth and is well-poised to create more long-term value for the shareholders.
PERFORMANCE DURING
THE YEAR :
All discussion here is in the context of the consolidated performance of the Company.
SALES AND OPERATIONS
:
The Company has a large international presence with active sales in all major regional markets / countries across the world. The Company has a large base of about 1250 end customers and low customer concentration. Its top 10 customer groups contributed 28% of total revenues in 2011-12. Company’s 73% of revenues were from PET Films in 2011-12. Of the total sales, 64% is accounted for by the end-users.
FUTURE OUTLOOK
AND PLANNED INVESTMENTS :
The exceptionally high margins in 2010 have attracted a lot of new investments in the PET/OPP film business. Most of these capacity additions have started commercial operations towards the second half of 2011 and first half of 2012. While demand growth remains intact and robust, bunching in capacity additions in anticipation of future growth does create periods of high competition with the resultant moderation in margins.
The Company remains confident that with its strengths of distributed manufacturing operations, diversified product portfolio, consistent quality, access to international customers, efficient supply chain model, higher proportion of value added products and superior performance it should be able to grow profitably and withstand variability in industry environment. The Company is well poised to capture growth opportunities in all its business segments within the confines of business prudence.
CONTINGENT
LIABILITIES NOT PROVIDED FOR AND OTHER COMMITMENTS, IN RESPECT OF:
- Disputed matters under litigation:
|
Particulars |
31.03.212 |
|
Sales Tax and Entry Tax |
23.887 |
|
Excise Duty and Customs Duty |
2.914 |
|
Income Tax |
7.354 |
|
Others |
1.875 |
- Bills discounted with banks – Rs.87.186 Millions (Previous Year – Rs.33.852 Millions).
- Custom Duty saved amounting to Rs.276.516 Millions (Previous Year – Rs.461.385 Millions) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.
- Import duty saved amounting to Rs.16.243 Millions (Previous Year – Nil) in respect of goods imported under advance license against which export obligation is pending to be fulfilled.
- Guarantees given to the banks and others - Rs.42.897 Millions (Previous Year – Rs.34.030 Millions), including Rs.0.225 Millions (Previous Year – Rs.0.225 Millions) on behalf of other bodies corporate.
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.54.34 |
|
|
1 |
Rs.80.90 |
|
Euro |
1 |
Rs.70.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
RSMK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
61 |
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.