MIRA INFORM REPORT

 

 

Report Date :

14.10.2013

 

IDENTIFICATION DETAILS

 

Name :

ADITHYA PLASTIC INDUSTRIES

 

 

Registered Office :

No 87, Vyasar Nagar, 7th Street, Vyasarpadi, Chennai – 600039, Tamilnadu

 

 

Country :

India

 

 

Year of Establishment:

2000

 

 

Capital Investment / Paid-up Capital :

Not Divulged

 

 

Legal Form :

Sole Proprietary Concern

 

 

Line of Business :

Traders of Ploymers and indenting agents.

 

 

No. of Employees :

2 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Dormant

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a small proprietary concern in its field. The status of the concern appears to be dormant.

 

Mr. Venkatasubbu (Salesman) has provided us the general information and denied to disclose any financial information.

 

The subject was engaged into importing and supplying of polymers which acts as a raw material for plastic industry.

 

As confirmed by Mr. Venkatasubbu, the significant rise in the raw material prices and weak rupee position has strained the working conditions of the concern, due to which the management has to stop its importing activities and lay off its existing employees.

 

There seems to be 2 part time employees employed by the concern with the help of which it acts as a supply agent of polymers imported by other firms which earns them less than a crore during 2013.

 

However, Business is active. Payments are reported to be slow.

 

The concern can be considered for business dealings on a safe and secured trade terms and conditions.

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INDIAN ECONOMIC OVERVIEW

 

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 (GENERAL DETAILS)

 

Name :

Mr. Venkatasubbu

Designation :

Salesman

Contact No.:

91-9486667115

Date :

11.12.2013

 

 

LOCATIONS

 

Registered Office :

No 87, Vyasar Nagar, 7th Street, Vyasarpadi, Chennai – 600039, Tamilnadu, India

Tel. No.:

91-44-25517754

Mobile No.:

91-9486667115 (Mr. Venkatasubbu)

Fax No.:

Not Available

 

 

SOLE PROPRIETOR

 

Name :

Mr. Raju

Designation :

Proprietor

 

 

KEY EXECUTIVES

 

Name :

Mr. Venkatasubbu

Designation :

Salesman

 

 

BUSINESS DETAILS

 

Line of Business :

Traders of Ploymers and indenting agents.

 

 

Terms :

 

Selling :

L/C

 

 

Purchasing :

L/C

 

 

 

GENERAL INFORMATION

 

Customers :

  • Wholesalers
  • End Users

 

 

No. of Employees :

2 (Approximately)

 

 

Bankers :

ICICI Bank, Chennai, Tamilnadu, India

 

 

 

Banking Relations :

 

 

 

Auditors :

Not Divulged

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Not Divulged

Borrowed :

Not Divulged

Total :

--

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

NOT DIVULGED

 

The above information has been denied by Mr. Venkatasubbu (Salesman)

 

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

 

 

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

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

No

12]

Profitability for last three years

No

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

No

16]

Details of sister concerns

No

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

No

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

No

28]

Incorporation details, if applicable

No

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

No

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

No

 

NEWS

 

THE LATEST NEWS ON THE POLYMER INDUSTRY IN INDIA

 

SINGAPORE (ICIS)--India implemented a 2.5-percentage point increase in duties on imports of all polymers and ethylene vinyl acetate (EVA) to 7.5% on Thursday, drawing cheers from domestic producers, but converters are likely to be hit by higher costs, industry sources said.

 

The move is expected to lead to higher domestic list prices of polymers such as polvethylene( PE), polypropylene (PP ), polyvinyl chloride (PVC) and polystyrene (PS) in the domestic market, industry sources said.

 

"Prices are likely to increase [further this] evening or tomorrow. Producers are looking at increasing list prices by at least [Indian] rupees [Rs] 2kg ($37/tonne)," said a source close to a domestic producer.

 

India's polymer list prices had been raised this week prior to the government's announcement.

 

"There will be fewer imports to India, as a result of the new duties," said an Indian trader.

 

The government's decision to increzise the import duty on plastics was in response to calls from industries groups to revise the country's duty structure to protect the domestic producers from heavy competition from abroad, industry sources said.

 

"If you look at the Asia Pacific region, India has one of the lowest import duty structures, while the southeast Asian countries impose duties well over 6.0-7.5%; said a source at one of the leading Indian PVC producers.

 

"The new duty structure also motivates regional to seriousfy look at capacity expansion," the source said.

 

Domestic producers view the import duty hike as a positive gesture by the government to encourage local production. A lower import duty of 5% on feedstocks - such as naphtha, ethylene dichloride (EDC) and vinyl chloride monomer (VCM) - should also be positive for domestic producers, industry sources said.

 

"This [import duty hike] will reduce competition from low-priced imports and help enhance demand for domestic material," a source at a local polymer producer said.

 

A consequent increase in domestic prices, however, is not likely to hit demand, which remains relatively I strong in India, industry sources said.

 

"In the short term, material in the domestic market will be more expensive. Local producers may increase prices because of this. But buying will still continue in India because of robust demand and tight supply," the India-based PE and PP trader said.

 

End-users are expected to be most adversely affected in the long term by the hike in polymer tariffs, traders said.

 

"Given India's robust PVC demand and its significant dependence on imports, buyers will continue to source foreign cargoes, as domestic supply is not sufficient meet the market's demand for PVC today," said a source close to a major northeast Asian producer.

 

India's annual PVC demand is about 2.25m tonnes - more than half of which, or 1.25m tonnes, are being sourced from the domestic market, while the rest is imported from northeast Asia and the US, industry sources said.

 

For PP and PS, on the other hand, India is a net exporter.

 

"Converters of polymers will have to pay higher prices for their raw materials as local producers will definitely raise their domestic offers further in line with the increased import prices, after factoring in the extra duty," said a Mumbai-based trader.

 

Major polymer producers in the country include Reliance Industries, Indian Oil, GAIL, Finolex, Chemplast Sanmar, Haldia Petrochemicals, Supreme Petrochem, DCW and LG Polymers India.

 

 

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.16

UK Pound

1

Rs.97.77

Euro

1

Rs.82.78

 

 

INFORMATION DETAILS

 

Report Prepared by :

KVT

 


 

 

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.