MIRA INFORM REPORT

 

 

Report Date :

05.10.2013

 

IDENTIFICATION DETAILS

 

Name :

SPP POLY PACK PRIVATE LIMITED

 

 

Registered Office :

35 A, IDA, Kattedan, Hyderabad– 500077, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

20.10.2003

 

 

Com. Reg. No.:

01-041899

 

 

Capital Investment / Paid-up Capital :

Rs. 6.500 Millions

 

 

CIN No.:

[Company Identification No.]

U25209AP2003PTC041899

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Poly Bags in LDPE, HMHDPE and PP.

 

 

No. of Employees :

50 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 140000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record.

 

Profit margin appears to be low during 2013.

 

However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealings with some caution.

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

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.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Mustufa

Designation :

Account Department

Contact No.:

91-40-24361018

Date :

04.10.2013

 

 

LOCATIONS

 

Registered Office/ Administrative Office/ Factory :

35 A, IDA, Kattedan, Hyderabad– 500077, Andhra Pradesh, India

Tel. No.:

91-40-24361018

Fax No.:

91-40-24360218

E-Mail :

narendra@slpindia.com

info@spppoly.com

racoauditors@yhaoo.com

Website:

http://www.spppoly.com

 

 

DIRECTORS

 

As on 05.09.2013

 

Name :

Mr. Suresh Chandra Lahoti

Designation :

Director

Address :

8-3-167/D/248, Kalyan Nagar, Hyderabad – 500 038, Andhra Pradesh, India

Date of Birth/Age :

12.01.1954

Qualification :

Graduate

Date of Appointment :

20.10.2003

DIN No.:

01848247

 

 

Name :

Mr. Naresh Kumar Rathi

Designation :

Director

Address :

15-7-297, Begum Bazar, Hyderabad – 500 012, Andhra Pradesh, India

Date of Birth/Age :

02.08.1963

Qualification :

Graduate

Date of Appointment :

20.10.2003

DIN No.:

01848262

 

 

KEY EXECUTIVES

 

Name :

Mr. Mustufa

Designation :

Account Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 05.09.2013

 

Names of Shareholders

 

No. of Shares

Naresh Kumar Rathi

 

287500

Jawaharlal Rathi

 

4000

Govindlal Rathi

 

32000

Susheela Devi Rathi

 

2000

Balkishan Rathi

 

5000

Smt. Sarla B Rathi

 

2000

Surendra Kumar Rathi

 

2000

Smt. Rajni Rathi

 

2000

Smt. Usha Rathi

 

2000

Sharad Kumar Rathi

 

2000

Smt Anuradha Rathi

 

12000

Umesh Kumar Rathi

 

33500

Manish Kumar Rathi

 

2000

Smt. Aarti Rathi

 

32000

Sunhl Kumar Rathi

 

2000

Smt. Madhu Rathi

 

32000

Sudhir Kumar Rathi

 

2000

Smt. Sonali Rathi

 

2000

Rohit Rathi

 

42000

Madhushree Enterprises

 

20000

Suresh Chandra Lahoti

 

98000

Smt. Swethai Lahoti

 

3000

Smt. Manju Devi Lahoti

 

3000

Shailesh Lahoti

 

4000

Smt. Sheetal Lahoti

 

3000

Sarvesh Lahoti

 

3000

Saurabh Lahoti

 

12000

Suresh Chandra Lahoti HUF

 

2000

Shailesh Lahoti HUF

 

2000

 

 

 

Total

 

650000

 

Equity Share Break up (Percentage of Total Equity)

 

As on 05.09.2013

 

Category

Percentage

Bodies corporate

3.08

Directors or relatives of Directors

96.92

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Poly Bags in LDPE, HMHDPE and PP.

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

31.03.2011

Actual Production

3444750.680 Kgs

 

 

GENERAL INFORMATION

 

Suppliers :

Raghav Polymers

 

 

Customers :

  • Mylan Laboratories
  • SMS Pharmaceutical Limited

 

 

No. of Employees :

50 (Approximately)

 

 

Bankers :

Axis Bank, 6-3-879/B, Greenlands Road,, Begumpet,, Hyderabad – 500 016, Andhra Pradesh, India

 

 

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Term Loan

HDFC Bank Loan

0.039

0.144

Short-term borrowings

 

 

Working Capital Loan

 

 

Axis Bank Cash Credit

40.744

48.354

Axis Bank LC

9.828

5.239

Total

50.611

53.737

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.A. Thakkar Associates

Chartered Accountants

Address :

Flat No.401, 1-10-1/12, Manbhum Prestige, Ashok Nagar, Hyderabad – 500 077, Andhra Pradesh, India

PAN N Income-tax PAN of auditor or auditor's firm :

AATPT4533A

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

750000

Equity Shares

Rs.10/- each

Rs.7.500 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

650000

Equity Shares

Rs.10/- each

Rs.6.500 millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

6.500

6.500

6.500

(b) Reserves & Surplus

29.445

26.968

24.381

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

35.945

33.468

30.881

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.039

0.144

1.471

(b) Deferred tax liabilities (Net)

0.696

0.706

0.632

(c) Other long term liabilities

5.863

6.262

10.072

(d) long-term provisions

1.043

0.896

0.200

Total Non-current Liabilities (3)

7.641

8.008

12.375

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

50.572

53.593

49.086

(b) Trade payables

33.876

23.973

28.677

(c) Other current liabilities

0.000

0.000

0.000

(d) Short-term provisions

4.671

4.301

1.536

Total Current Liabilities (4)

89.119

81.867

79.299

 

 

 

 

TOTAL

132.705

123.343

122.555

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

22.258

25.449

26.315

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

22.258

25.449

26.315

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

20.378

27.065

15.196

(c) Trade receivables

77.596

58.465

66.241

(d) Cash and cash equivalents

1.847

1.482

1.892

(e) Short-term loans and advances

10.626

10.882

12.911

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

110.447

97.894

96.240

 

 

 

 

TOTAL

132.705

123.343

122.555

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

354.426

299.369

285.268

 

 

Other Income

3.586

5.441

3.111

 

 

TOTAL                                     (A)

358.012

304.810

289.379

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumed

294.576

252.968

235.873

 

 

Manufacturing Expenses

18.836

13.572

13.334

 

 

Decreases/increase in finished stock

2.034

(2.413)

0.047

 

 

Payments to and for employees

10.063

9.592

7.441

 

 

Administrative Expenses

14.129

12.653

12.710

 

 

TOTAL                                     (B)

339.638

286.372

269.405

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

18.374

18.438

19.974

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

11.303

10.969

8.734

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

7.071

7.469

11.240

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3.481

3.726

3.167

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

3.590

3.743

8.073

 

 

 

 

 

Less

TAX                                                                  (H)

1.113

1.156

2.504

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2.477

2.587

5.569

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

26.968

24.381

18.812

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

29.445

26.968

24.381

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.81

3.98

5.57

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

0.69

0.85

1.92

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

1.01

1.25

2.83

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.71

3.03

6.59

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.10

0.11

0.26

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.41

1.61

1.64

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.24

1.20

1.21

 

 

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

Yes

10]

Designation of contact person

Yes

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

No

17]

Major suppliers

Yes

18]

Major customers

Yes

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

No

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

90262938

27/07/2013 *

54,550,000.00

AXIS BANK LIMITED

CORPORATE BANKING BRANCH,6-3-879/B, GREENLAND ROAD, BEGUMPET ROAD, HYDERABAD, ANDHRA PRADESH - 500016, INDIA

B82051376

2

90128790

12/03/2005

17,000,000.00

STATE BANK OF INDIA

SAIFABAD BRANCH, HYDERABAD, ANDHRA PRADESH, INDIA

-

3

90126838

10/11/2004 *

9,516,000.00

STATE BANK OF INDIA

SAIFABAD BRANCH, HACA BHAWAN, HYDERABAD, ANDHRA PRADESH, INDIA

-

4

90128564

13/04/2004

9,516,000.00

STATE BANK OF INDIA

SAIFABAD BRANCH, HACA BHAWAN, HYDERABAD, ANDHRA PRADESH, INDIA

-

 

Note: * Date of charge modification

 

FIXED ASSETS:

 

·         Building

·         Machinery

·         ABT Meter

·         Electronic Weighing

·         Generator

·         Vacuum Cleaner

·         Air Curtain

·         Fire Extinguisher

·         Transformer

·         Exhaust Fans

·         EPABX System

·         Pallate Trolley

·         Vehicle

·         Computer System

·         Furniture and Fitting

·         Plant and Machinery

 

 

TRADE REFERENCES

 

  • Raghav Polymers
  • Mylan Laboratories
  • SMS Pharmaceutical Limited

 

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.61.41

UK Pound

1

Rs.99.29

Euro

1

Rs.83.68

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

KVT

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

29

 

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.