.
MIRA
INFORM REPORT
|
Report Date : |
28.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
GLORY FILMS LIMITED (w.e.f. 04.02.2013) |
|
|
|
|
Formerly Known
As : |
GLORY POLY FILMS LIMITED (w.e.f. 30.12.2005) GLORY POLY FILMS PRIVATE LIMITED |
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|
|
|
Registered
Office : |
201, Vintage |
|
|
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|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
15.12.1997 |
|
|
|
|
Com. Reg. No.: |
11-112461 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.594.681 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L92110MH1997PLC112461 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG05222A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG5068K |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturers of flexible
laminates and multilayer barrier (3 layers and 5 layer Nylon / EVOH based)
Films. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (18) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and delayed |
|
|
|
|
Litigation : |
Exist |
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|
Comments : |
Subject is an established company having a moderate track record. The financial position of the company is under pressure. Delay in the
payment is reported. It has incurred heavy loss from its operations during 2013. However, business is active. Payment terms are slow and delayed. The
company 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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third quarter,
according to a study by RSA. India ranks fourth in the list of nations hit by
phishing attacks. The US remained at the top of the charts. Phishing is the
process of acquiring information such as user names, passwords and credit card
details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
D (Long term Bank Facilities) |
|
Rating Explanation |
Lowest credit quality and very low prospects
of recovery. |
|
Date |
January 30, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
D (Short term Bank Facilities) |
|
Rating Explanation |
Lowest credit quality and very low prospects
of recovery. |
|
Date |
January 30, 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 : |
201, Vintage |
|
Tel. No.: |
91-22-26514810 / 11 |
|
Fax No.: |
91-22-26514812 |
|
E-Mail : |
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|
Website : |
|
|
Area: |
1000 Sq. Ft. |
|
Location : |
Owned |
|
|
|
|
Factory 1 : |
Survey No. 261/1/2/4, Industrial Estate, Coastal Highway, Village
Dunetha, Nani Daman, Daman-396210, India |
|
Tel. No.: |
91-260-3984800/ 2992526 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Yogesh P. Kela |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Umesh P. Kela |
|
Designation : |
Executive Director |
|
Date of Birth : |
03.09.1977 |
|
Date of Appointment : |
15.12.1997 |
|
Qualification : |
Bachelor of Engineering Degree in
production Engineering, Diploma in business management |
|
|
|
|
Name : |
Mr. Muralidharan Iyengar |
|
Designation : |
Independent Director |
|
Date of Birth : |
21.11.1960 |
|
Date of Appointment : |
30.05.2012 |
|
Qualification : |
Chartered Accountant |
|
|
|
|
Name : |
Mr. Rakesh Srivastava |
|
Designation : |
Independent Director |
|
Date of Birth : |
05.01.1965 |
|
Date of Appointment : |
09.02.2013 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
2761510 |
4.64 |
|
|
2761510 |
4.64 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
2761510 |
4.64 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
9195581 |
15.46 |
|
|
|
|
|
|
18338036 |
30.84 |
|
|
27951375 |
47.00 |
|
|
1221646 |
2.05 |
|
|
48169 |
0.08 |
|
|
1173477 |
1.97 |
|
|
56706638 |
95.36 |
|
Total Public
shareholding (B) |
56706638 |
95.36 |
|
Total (A)+(B) |
59468148 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
59468148 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of
flexible laminates and multilayer barrier (3 layers and 5 layer Nylon / EVOH
based) Films. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· State Bank of India · Indian Overseas Bank · Central Bank of India · Dena Bank ·
HSBC Bank Limited |
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Facilities : |
(Rs.
In Millions)
Notes: a) Additional
Information to Long Term Borrowings The Long term portion of term loan are shown under long term borrowings and current maturities of the Long term borrowings are shown under the current maturities. b) Details of
Securities and Terms of Repayments A i) Term Loan from
State Bank of India
ii) Term Loan from Indian
Overseas Bank
Term Loans from State Bank of India and Indian Overseas Bank are secured by way of first charge on pari-passu basis on entire fixed assets both present and future. These loans are further collaterally secured by way of extention of second charge on the entire current assets of the company consisting of raw materials, stock in process, finished goods, stores and spares, other consumables and receivables with State Bank of India, Indian Overseas Bank, Dena Bank, Central Bank of India and HSBC Bank on pari passu basis. Due to non payment of Term Loan the account of the company is considered as NPA by the banks. Non Provision of Interest of Rs. 49.285 Millions and 10.778 Millions on term loan of State Bank of India and Indian Overseas Bank respectively, due to this, the term loan liability is lower by Rs. 60.063 Millions with corresponding effect on loss for the year. The Company has requested for consideration of Corporate Debt Restructuring (CDR) and application has been filed with Lead bank in April 2012 and is under their consideration. B Car Loan Loan against Vehicles from Kotak Mahindra Bank and Reliance Capital Limited are secured against hypothecation of vehicles belongs to the company including third party.
C Loan against Keyman Insurance Policy is granted from Life Insurance Corporation of India against Keyman Insurance policy Against these policies, loan was obtained based on the prevailing surrender value which is @ 90% of surrender value from LIC Of India, by assigning the policies to LIC Of India. In absence of relevant policy documents and loan documents, statement and confirmation, these details are certified by Managing Director and relied by auditor on the same. The above facilities are secured by way of 1st pari passu charge between State bank of India, Indian Overseas Bank, Dena Bank, Central Bank of India and HSBC Bank on entire current assets of the company consisting of Raw Material, Work in Progress, Finished Goods, Stores and Spares, Other Consumables and Book Debts and 2nd charge on pari pasu between State Bank of India, Indian Overseas Bank, Dena Bank, Central Bank of India and HSBC Bank bank on the fixed assets of the company both present and future consisting of Plant and Machinery, Land and Building, Factory Furniture and Fixture along with personal gurantee of Shri Prakash Kela, Shri Yogesh Kela, Managing Director and Shri Umesh Kela, Executive Director. Due to overdrawings in the above accounts, the banks have considered accounts as NPA. Non-provision of Interest on working capital loan for State Bank Of India for Rs. 42.702 Millions, Indian Overseas Bank for Rs. 18.125 Millions and Centeral Bank of India for Rs 14.568 Millions. Due to this working capital liability is lower by Rs. 75.395 Millions with corresponding effect on loss for the year. The Company has requested for consideration of Corporate Debt Restructuring (CDR) and application has been filed with Lead bank in April 2012 and is under their consideration. Non-provision of interest on loan facilities from HSBC Bank computed on 10% basis Rs. 2.990 Millions for the year and Interest for earlier year Rs. 2.990 Millions. Due to this Loan from HSBC Bank is lower by Rs. 5.980 Millions with corresponding effect on loss for the year. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Mittal and Associates Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
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|
|
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Internal Auditors : |
|
|
Name : |
ADV and Associates Chartered Accountant |
|
Address: |
Mumbai, Maharashtra, India |
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|
|
|
Associates : |
Immense Packaging Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63000000 |
Equity Shares |
Rs.10/- each |
Rs.630.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
59468148 |
Equity Shares |
Rs.10/- each |
Rs.594.681 Millions |
|
|
|
|
|
a) Reconciliation of
the Shares outstanding at the beginning and at the end of the reporting period
(Rs. In Millions)
|
Particulars |
Quantity |
As at 31st March, 2013 |
|
Equity Shares |
Value |
|
|
Numbers of Shares outstanding at the beginning of the Year |
Qty |
59468148 |
|
|
value |
594.681 |
|
Add : Further Shares issued during the year |
- |
- |
|
Less : shares brought back during the year |
- |
- |
|
Numbers of Shares outstanding at the end of the Year |
Qty |
59468148 |
|
|
value |
594.681 |
b) Terms/ rights
attached to shares
The Company has only one class of equity share having a par value of ` 10 per share. Each holder of equity share is entitled to one vote per share.
c) Details of Shares
held by each shareholder holding more than 5% shares
|
Particulars |
As at 31st March, 2013 |
|
|
Name of the shareholders |
% held |
No. of shares |
|
Yogesh Kela |
-- |
-- |
|
Streamline Shipping Company Private Limited (Pledged shares of company’s promoters) |
7.29 |
4355144 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
594.681 |
594.681 |
594.681 |
|
(b) Reserves & Surplus |
352.928 |
607.708 |
805.165 |
|
(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) |
947.609 |
1202.389 |
1399.846 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
190.426 |
251.429 |
350.872 |
|
(b) Deferred tax liabilities (Net) |
71.393 |
39.561 |
41.757 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
261.819 |
290.990 |
392.629 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
850.813 |
757.614 |
564.978 |
|
(b) Trade payables |
378.929 |
324.025 |
176.522 |
|
(c) Other current liabilities |
276.229 |
163.772 |
161.977 |
|
(d) Short-term provisions |
11.741 |
11.930 |
16.432 |
|
Total Current
Liabilities (4) |
1517.712 |
1257.341 |
919.909 |
|
|
|
|
|
|
TOTAL |
2727.140 |
2750.720 |
2712.384 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1232.706 |
1370.288 |
1510.885 |
|
(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 |
255.094 |
156.929 |
46.380 |
|
(e) Other Non-current assets |
0.460 |
1.304 |
2.148 |
|
Total Non-Current
Assets |
1488.260 |
1528.521 |
1559.413 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
105.417 |
120.446 |
202.684 |
|
(c) Trade receivables |
551.736 |
508.110 |
477.009 |
|
(d) Cash and cash equivalents |
36.422 |
41.101 |
23.906 |
|
(e) Short-term loans and advances |
485.822 |
299.182 |
331.310 |
|
(f) Other current assets |
59.483 |
253.360 |
118.062 |
|
Total Current
Assets |
1238.880 |
1222.199 |
1152.971 |
|
|
|
|
|
|
TOTAL |
2727.140 |
2750.720 |
2712.384 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
767.564 |
1248.860 |
1677.203 |
|
|
|
Other Income |
4.760 |
68.712 |
78.238 |
|
|
|
TOTAL (A) |
772.324 |
1317.572 |
1755.441 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
639.530 |
746.104 |
761.857 |
|
|
|
Purchase of Stock in trade |
0.000 |
185.486 |
635.290 |
|
|
|
Increase/(Decrease) in stock |
18.897 |
33.020 |
-35.286 |
|
|
|
Employees benefits expense |
28.884 |
30.232 |
24.060 |
|
|
|
Other Expense |
99.647 |
136.796 |
97.087 |
|
|
|
Compensation receivable - Written Off |
0.000 |
28.929 |
0.000 |
|
|
|
Exchange loss on issue of GDR |
0.000 |
0.000 |
29.650 |
|
|
|
TOTAL (B) |
786.958 |
1160.567 |
1512.658 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
(14.634) |
157.005 |
242.783 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
65.163 |
213.439 |
135.293 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND
AMORTISATION (C-D) (E) |
(79.787) |
(56.434) |
107.490 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
143.162 |
143.218 |
90.318 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
(222.949) |
(199.652) |
17.172 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
31.832 |
(2.196) |
12.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(254.781) |
(197.456) |
5.072 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(4.28) |
(3.32) |
0.09 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(32.99) |
(14.99) |
0.29 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(29.05) |
(15.99) |
1.02 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.18) |
(7.26) |
0.63 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.24) |
(0.17) |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.10 |
0.84 |
0.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.82 |
0.97 |
1.25 |
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 |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
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 |
Yes |
|
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 |
|
LITIGATION DETAILS |
||||||
|
Bench:- Bombay |
||||||
|
Stamp No:- |
CPL/574/2013 |
Failing Date:- |
22/08/2013 |
|||
|
|
||||||
|
Petitioner:- |
MAMTA MACHINERY PVT. LTD. |
Respondent:- |
GLORY FILMS LTD. |
|||
|
Petn.Adv:- |
B.B. PAREKH |
|||||
|
District:- |
OUTSIDE MAHARASHTRA |
|||||
|
|
||||||
|
Bench:- |
SINGLE |
Category:- |
COMPANY PETITION/SEC 433,434,439 COMPANIES ACT |
|||
|
Status:- |
Pre-Admission |
Stage:- |
|
|||
|
Last Date:- |
29/08/2013 |
|
||||
|
Last Coram:- |
REGISTRAR(OS)/PROTHONOTARY & SR. MASTER |
|||||
|
|
|
|||||
|
Act:- |
Companies Act & Rules 1956 |
Under Section :- |
433, 434 & 439 |
|||
UNSECURED LOAN
(Rs.
In Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
SHORT TERM
BORROWINGS |
|
|
|
From Bank |
|
|
|
DBS Bank |
34.494 |
34.494 |
|
Kotak Mahindra Bank |
43.062 |
43.062 |
|
From Directors and Relatives |
1.347 |
0.000 |
|
From Others |
32.510 |
62.701 |
|
|
|
|
|
Total |
111.413 |
140.257 |
Notes:
a) from Banks
i) DBS Bank - Sale Bill Discounting facility
ii) Kotak Mahindra Bank
The working capital loan due to Kotak Mahindra Bank was repaid on 31.12.2011. On 31.12.2011 Kotak Mahindra Bank has transferred outstanding Letter of Credit (L/c) amounting to working capital account. The lead bank i.e. State Bank of India has considered outstanding L/c amount as unsecured facility and filed charge accordingly on 21.02.2012. In view of this outstanding amount due to Kotak Mahindra Bank is considered as unsecured loan.
Kotak Mahindra Bank, HSBC Bank and DBS Bank and 4 of its creditors have filed winding up petition with the High Court against the company.
Kotak Mahindra Bank and HSBC Bank have also filed Recovery
case with DRT Mumbai against the Company.
FINANCIAL RESULTS
During the year, the Company has recorded a total income of Rs. 772.324 Millions (previous year Rs.1317.572 Millions), representing a decrease of approximately 41.38%. The Company incurred a Loss before tax of Rs. 222.949 Millions (previous year Profit Before Tax Rs. 199.652 Millions). The Loss for the year was on account of increase in raw material prices, which largely depends on the movement of crude oil prices. The Directors are optimistic of a turnaround in the coming years, due to the rise in demand for the plastic packaging products in India and abroad.
MANAGEMENT DISCUSSION
AND ANALYSIS
Packaging Industry
The global plastic industry is witnessing continuous shift of production bases to low-cost Asian countries. This coupled with increasing foreign investments, and rise in the number of new manufacturing establishments are presenting Asia-Pacific as a prime driver of growth in the plastics industry. In particular, China and India offer enormous potential due to expanding automobile demand, resurgence in growth fundamentals across all end-use markets, such as rebuilding of consumer/business confidence, increasing income levels, rebound in general production, and rise in capital investments in all end-use sectors.
The global packaging industry witnessed influence of technology innovation and development, a key reason for the industry’s robust growth over the last few decades. Over the years, technology development has been moving in sync with growing consumer demand for convenient and quality packaging. Eclectic packaging solutions, for instance, have evolved to offer exceptional product packaging advantages to manufacturers and consumers alike.
Besides growing demand from the automobile, mining, chemical, construction and agricultural industries, the Asia-Pacific plastics market is propelled by trends such as globalization, demand for durable products and urbanization Packaging sector is one of the major consumers of plastics. Apart from being used as a substitute for traditional materials, plastic packaging is being increasingly used in healthcare and personal care products, and packaged foods and beverages markets. Advancements in packaging material science and mounting demand for product protection and stability are further driving demand for plastic packaging. Bioplastic demand is on the rise and is expected to grow, owing to novel applications in the packaging industry, primarily for food and beverages. Emerging nations with underdeveloped or no recycling facilities are expected to benefit considerably from bioplastics products and packaging.
The global flexible packaging market (at $71 billion in 2011) will grow by around 5.0% a year, reaching $90 billion in 2016. Flexible packaging is an industry relatively immune from global economic downturns. In 2016, 42% of the industry will be in Asian markets, which are growing at about 7% a year – the fastest growing region is Southeast Asia and Oceania, driven by high demand in India with 15-20% annual increases. The global arena remains “local” with regional converters supplying the vast proportion of local packaged-goods customers’ needs. Only 4% of flex-pack production is traded outside the region in which it is manufactured.
Packaging in India
Today, packaging is produced more quickly and efficiently. It is generally lighter in weight, uses less material, is easier to open, dispense from, reseal, store, and dispose. Packaging has evolved from a relatively small range of heavy, rigid containers made of wood, glass, and steel, to a broad array of rigid, semi rigid and flexible packaging options increasingly made from specialized lightweight materials.
Encouraged by strong economic growth, stimulation in processed food production and retailing and the growing personal disposable incomes of the 350 million middle-income earners in India, will drive growth in the flexible packaging industry over the next five years averaging 15% per annum through to 2015. However, Indian Plastic Industry now faces double- edged sword as on the one side it faces low cost imports from China and Thailand due to slowdown in Global economy, particularly in USA and on other side increased cost of production due to rising prices of Polymer.
Flexible Packaging
Flexible packaging consists of multi-layer laminated sheets of plastics (PVC, LDPE, HDPE, BOPP, BOPET), paper, cloth, or metal foils that are used separately or in combination for various packaging applications. However, this article discusses flexible packaging as laminates of plastics that have a unique set of properties that ensure toughness, moisture resistance, aroma retention, gloss, grease resistance, heat sealability, printability, low odour and taste. These find use in packaging food, tea, coffee, spices, chewing tobacco, bakery, confectionary, oils, and in certain other non-food applications such as household detergents, health and personal care, soaps, and shampoos.
Flexible Packaging
Demand in India and Worldwide
Worldwide demand for converted flexible packaging is forecasted to grow 3.6 percent per year to over 19 million metric tons in 2013, faster than real (inflation adjusted) gains in GDP. Factors contributing to rising converted flexible packaging demand include growth in food and beverage shipments, which represent the largest market by far. In addition, cost performance and source reduction advantages, as well as ongoing developments in high-barrier resins and value added features, will continue to favour flexible packaging products over their rigid packaging materials.
Flexible packaging has reached market maturity in the developed nations of North America and Western Europe and future growth will be modest. However, in developing countries, the flexible packaging sees strong growth. Asia is the largest regional market with 29.1% of global market volume in 2011, followed by Western Europe and North America. Asia is also the fastest growing market for consumer flexible packaging, with a forecast CAGR for 2011-16 of 7.9%. The region is forecast to represent 55.0% of total world flexible packaging consumption growth during the period 2011-16. India and China are the fastest-growing national markets for consumer flexible packaging, together accounting for 44.0% of world flexible packaging consumption growth during the forecast period.
The Indian flexible packaging Market 2011 shows India represents a US$ 3 billion market that is expected to continue growing at around 18-20% a year until 2015. India is poised for huge growth with opening up of retail sector.
STATEMENT OF AUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER 2013
(Rs. In Millions)
|
|
|
Quarter Ended |
||
|
Sr. No. |
Particular |
3
months ended 31.12.2013 |
3
months ended 30.09.2013 |
9
months ended 31.12.2013 |
|
|
|
Unaudited
|
Audited |
Unaudited |
|
1. |
Income from operations |
|
|
|
|
|
Net Sales/Income
from Operations |
158.328 |
156.589 |
488.058 |
|
|
Other operating
income |
6.027 |
4.135 |
13.899 |
|
|
Total Income |
164.355 |
160.724 |
501.956 |
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
137.575 |
133.237 |
425.913 |
|
|
Purchase
of stock in trade |
- |
- |
- |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
7.569 |
14.101 |
13.278 |
|
|
Employee
benefits expenses |
12.422 |
3.589 |
20.989 |
|
|
Depreciation
and amortization expenses |
35.468 |
35.830 |
107.128 |
|
|
Other
expenses |
17.075 |
10.129 |
39.746 |
|
|
Total Expenses |
210.109 |
196.985 |
607.054 |
|
3. |
Profit/ (Loss) from Operations
before Other Income, Interest and Exceptional Items (1-2) |
(45.754) |
(36.261) |
(105.098) |
|
4. |
Other
Income |
- |
- |
- |
|
5. |
Profit/ (Loss) from ordinary
activities before finance costs and
Exceptional Items (3+4) |
(45.754) |
(36.261) |
(105.098) |
|
6. |
Finance
Cost (net) |
185.268 |
3.136 |
159.253 |
|
7. |
Profit/ (Loss) from ordinary
activities after finance costs and but before Exceptional Items (5+6) |
(231.022) |
(39.397) |
(264.350) |
|
8. |
Prior
Period Items |
255.903 |
- |
255.903 |
|
9. |
Profit/ (Loss) from ordinary
activities after finance costs but before exceptional Item (5+6) |
(486.925) |
(39.397) |
(520.253) |
|
10. |
Exceptional
Item |
103.623 |
(15.590) |
103.623 |
|
|
Impairment
of Printing Cylinder and Plates |
31.883 |
- |
31.883 |
|
|
Balance
written off |
71.740 |
- |
71.740 |
|
|
Reversal
of interest |
- |
- |
- |
|
9. |
Profit/ (Loss) from ordinary
activities before tax (7+8) |
(590.547) |
(23.807) |
(623.876) |
|
10. |
Tax
Expense |
(71.283) |
- |
(71.283) |
|
11. |
Profit/ (Loss) from ordinary
activities after tax (9-10) |
(519.265) |
(23.807) |
(552.593) |
|
12. |
Extraordinary Items (net of
tax expenses) |
- |
- |
- |
|
13 |
Net Profit/ (Loss) for the
period (11-12) |
(519.265) |
(23.807) |
(552.593) |
|
14. |
Paid-up Equity Share Capital (Face Value per share Re.10) |
594.681 |
594.681 |
594.681 |
|
15. |
Reserve excluding Revaluation Reserves |
|
|
|
|
16i. |
Earnings Per Share
– (Before Extraordinary Items) |
|
|
|
|
|
Basic |
(4.28) |
(0.01) |
(6.97) |
|
|
Diluted |
(4.28) |
(0.01) |
(6.97) |
|
16ii. |
Earnings Per Share
– (After Extraordinary Items) |
|
|
|
|
|
Basic |
(4.28) |
(0.01) |
(6.97) |
|
|
Diluted |
(4.28) |
(0.01) |
(6.97) |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
56706638 |
56706638 |
56706638 |
|
|
-
Percentage of Shareholding |
92.49 |
92.49 |
92.49 |
|
|
|
|
|
|
|
2. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
1705500 |
1705500 |
1705500 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
61.76 |
61.76 |
61.76 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
2.87 |
2.87 |
2.87 |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
1056010 |
1056010 |
1056010 |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
38.24 |
38.24 |
38.24 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
4.64 |
4.64 |
4.64 |
|
Particulars |
3
months ended 31.12.2013 |
|
Pending at the beginning of the quarter |
0 |
|
Received during the quarter |
0 |
|
Disposed of during the quarter |
0 |
|
Remaining unresolved at the end of the
quarter |
0 |
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
Particulars |
3
months ended 31.12.2013 |
|
Equities and Liability |
|
|
[A] SHAREHOLDERS
FUNDS |
|
|
1] Share Capital |
594.681 |
|
2] Reserves & Surplus |
(199.665) |
|
Sub
Total |
395.016 |
|
[B] Non Current
Liability |
|
|
1] long-term borrowings |
- |
|
2] Deferred tax liabilities (Net) |
- |
|
3] Other long term liabilities |
- |
|
4] long-term provisions |
- |
|
Sub
Total |
- |
|
[C] Current
Liabilities |
|
|
(a) Short term borrowings |
1023.825 |
|
(b) Trade payables |
392.149 |
|
(c) Other current liabilities |
505.075 |
|
(d) Short-term provisions |
8.892 |
|
Sub
Total |
1929.941 |
|
|
|
|
Total
Equity and Liability |
2324.958 |
|
ASSETS |
|
|
[I] Non Current
Assets |
|
|
a) Fixed assets |
1125.100 |
|
b) Long Term Loan and Advances |
255.094 |
|
Sub
Total Non Current Assets |
1380.194 |
|
[II] Current Assets |
|
|
a) Inventories |
60.425 |
|
b) Trade Receivable |
523.001 |
|
c) Cash and Cash Equivalents |
41.021 |
|
d) Short Term Loan and Advances |
281.086 |
|
e) Other Current Assets |
39.229 |
|
Sub
Total Current Assets |
944.754 |
|
|
|
|
TOTAL
– Current Assets |
2324.958s |
Notes:
1. The above results were reviewed and approved by the Audit Committee and taken on record by the Board of Directors at their meeting held on January 07, 2014.
2. The Company's operations constitutes a single segment namely "Poly Film
Manufacturing" as per Accounting Standard-17, 'Segment Reporting'. Further
the Company's operations are within single geographical segment which is India.
3. Tax Expense include deferred tax only and earlier year taxes of Rs. 0.110
Million.
4. The Company has now accounted interest on loans from banks which were not
accounted for in FY 12-13.
5. In DRT HSBC, Kotak Mahindra and DBS Bank have filled recovery suit against
the company, Kotak Mahindra Bank had got an attachment order against the
company, the company has appealed against the said order before appropriate
authority.
6. Winding up petition filed by few creditors and some lenders has been
admitted before the Honourable Bombay High Court and order has been passed
against the company, the company has appealed against the said order with
Division Bench of Honourable Bombay High Court.
7. With respect to old and disputed recoverable from certain parties the
company has initiated arbitration proceedings. However, no provision for loss,
if any, has been made on this account.
8. The Board has approved to close the Financial Year 13-14 for a period of
Nine Months ending on December 31, 2013, as the company is persuing with
Foreign Investor / Fund who have shown interest in investing funds in the
company and as they require latest Audited Financials.
9. The figures of the last quarter are balancing figure between audited figure
in respect of full financial year and published year to date figures up to the
third quarter. The Company has decided to close the Financial Year 2013-14 on
December 31, 2013 for a period of 9 months. Hence, the figures for the current
year are not strictly comparable with those of the previous financial year.
FIXED ASSETS
· Land
· Building
· Plant and Machinery
· Electrical Equipment
· Office Equipment
· Furniture and Fixtures
· Vehicles
· Computers and Peripherals
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.62.71 |
|
|
1 |
Rs.103.82 |
|
Euro |
1 |
Rs.85.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
18 |
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.