MIRA
INFORM REPORT
|
Report Date : |
29.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
PIRAMAL GLASS LIMITED |
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d |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
06.02.1998 |
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Com. Reg. No.: |
11-113433 |
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Capital
Investment / Paid-up Capital : |
Rs.809.160 Millions |
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CIN No.: [Company Identification
No.] |
L28992MH1998PLC113433 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
SRTG00256E |
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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 of Glass Containers for the Cosmetics and Perfumery, Pharmaceuticals and
Specialty Food and Beverages Industries. |
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No. of Employees
: |
3987 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 19000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. Company has performed well. Overall financial position of the company
is decent. Trade relations are reported to be fair. Business is active. Payments
are reported to be fair. Business is active. Payments are reported to be
regular and as per commitment. The company can be considered for business dealing at usual 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real
estate outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
BBB+ (Fund Based Limit) |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
May, 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
A2 (Non-Fund Based Limit) |
|
Rating Explanation |
Strong degree of safety and low credit risk.
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|
Date |
May, 2014 |
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
31-03-2014.
LOCATIONS
|
Registered Office / Corporate
Office 1 : |
Nicholas Piramal
Tower, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai -
400013, Maharashtra, India |
|
Tel. No.: |
91-22-30466666 / 30466969 |
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Fax No. : |
91-22-24902363 / 24908824 |
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E-Mail : |
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Website : |
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Area: |
14000 sq. ft. |
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Location : |
Rented |
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Corporate Office 2 : |
Piramal Tower Annexe, 6th Floor, Peninsula
Corporate Park, Off. Worli Naka, Lower
Parel (West), Mumbai – 400013, Maharashtra, India |
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Tel. No.: |
91-22-30466969 /
30466901 |
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Fax No.: |
91-22-24908824 |
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E-Mail : |
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Plant Location : |
plant
I
ONGC Road, Tarsadi Village, Kosamba, District Surat – 394 120, Gujarat, India Tel. No.: 91-2629-231701/5 Fax No.: 91-2629-231271 E-Mail: mprasad@gujaratglass.co.in plant
ii
Off. Masar Chowkadi, Masar Gajera Road, Village Ucchad, Tehsil Jambusar, District Bharuch - 392150, Gujarat, India Tel. No.: 91-2644-233313 – 7 Fax No.: 91-2644-233282 E-Mail: sagarwal@gujaratglass.co.in |
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Overseas Plant Location : |
· Piramal Glass Ceylon PLC, Poruwadanda, Wagawatte, Horana, Srilanka ·
· PGI Decora, 918 E, Malaga Road, Williamstown, NJ 08094, USA |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Ajay G. Piramal |
|
Designation : |
Chairman |
|
Address : |
Piramal House 61,
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Date of Birth/Age : |
03.08.1955 |
|
Qualification : |
B.Sc., M.M.S. (Bom)., A.M.P. (Harvard) |
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Date of Appointment : |
06.02.1998 |
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|
Name : |
Ms. Vinita Bali |
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Designation : |
Director |
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Name : |
Mr. Vimal
Bhandari |
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Designation : |
Director |
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Name : |
Mr. Dharendra
Chadha |
|
Designation : |
Director |
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Name : |
Mr. Shitin Desai |
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Designation : |
Director |
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Date of Appointment : |
30.04.2013 |
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Name : |
Mr. Jiten Doshi |
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Designation : |
Director |
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Name : |
Mr. Suhail Nathani |
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Designation : |
Director |
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Date of Appointment : |
08.02.2013 |
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Name : |
Ms. Swati A.
Piramal |
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Designation : |
Director |
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Address : |
Piramal House 61,
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Date of Birth/Age : |
28.03.1956 |
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Date of Appointment : |
12.03.1998 |
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Name : |
Mr. Vijay Shah |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
No. of Shares |
% of holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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|
(1) Indian |
|
|
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Individuals / Hindu Undivided Family |
417140 |
0.52 |
|
|
72990179 |
90.20 |
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|
107110 |
0.13 |
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|
107110 |
0.13 |
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|
73514429 |
90.85 |
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Total shareholding of Promoter and Promoter Group (A) |
73514429 |
90.85 |
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(B) Public Shareholding |
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|
|
|
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|
1506142 |
1.86 |
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|
10511 |
0.01 |
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|
131910 |
0.16 |
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|
1648563 |
2.04 |
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|
|
|
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|
2017932 |
2.49 |
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|
|
|
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|
2741222 |
3.39 |
|
|
565267 |
0.70 |
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|
428573 |
0.53 |
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|
174680 |
0.22 |
|
|
243691 |
0.30 |
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|
10010 |
0.01 |
|
|
192 |
0.00 |
|
|
5752994 |
7.11 |
|
Total Public shareholding (B) |
7401557 |
9.15 |
|
Total (A)+(B) |
80915986 |
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) |
80915986 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Glass Containers for the Cosmetics and Perfumery, Pharmaceuticals and
Specialty Food and Beverages Industries. |
GENERAL INFORMATION
|
No. of Employees : |
3987 (Approximately) |
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Bankers : |
· Allahabad Bank · HDFC Bank Limited · Corporation Bank · Axis Bank Limited · The Hongkong and Shangai Banking Corporation Limited · Central Bank of India · Induslnd Bank Limited · DBS Bank Limited ·
Yes Bank Limited |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
Haribhakti and Company Chartered Accountants |
|
Address : |
Race Course Circle, Vadodara - 390007, Gujarat, India |
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Subsidiary
Companies : |
· Piramal Glass Ceylon PLC. · Piramal Glass International Inc. · Piramal Glass-USA Inc. · Piramal Glass Flat River LLC · Piramal GIass Williamstown LLC · Piramal Glass (UK) Limited ·
Piramal Glass Europe SARL |
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Associated
Companies : |
· Piramal Enterprises Limited · Piramal Corporate Services Limited ·
Piramal Realty Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
82000000 |
Equity Shares |
Rs.10/- each |
Rs.820.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80923500 |
Equity Shares |
Rs.10/- each |
Rs.809.240 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80915986 |
Equity Shares |
Rs.10/- each |
Rs.809.160 Millions |
|
|
|
|
|
NOTES:
|
a. Reconciliation of shares outstanding at
the beginning & at the end of Reporting Period: |
Equity Shares in Nos. |
|
Issued, Subscribed and
paid-up shares |
|
|
Opening
Balance |
80915986 |
|
Issued
during the year |
-- |
|
Closing
Balance |
80915986 |
b. Terms
and Rights attached to equity shares:
The
company has one class of equity shares having a par value of Rs. 10 per share.
Each shareholder is eligible for one vote per share held. The dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting, except in case of interim dividend. In the
event of liquidation, the equity shareholders are eligible to receive the
remaining assets after discharging all liabilities of the Company, in proportion
to their shareholding.
|
|
31st march
2014 |
|
c. Details of shareholders holding more than
5% shares in the Company: |
|
|
PEL
Management Services Private Limited - Trustee of The Shri Hari Trust. |
|
|
- No of shares |
56411924 |
|
- % Holding |
69.72% |
d. At
the time of the Company’s Rights Issue of 62940500 equity shares of Rs.10/-
each for cash at a price of Rs.30/- per share (including a share premium of
Rs.20/-) in 2009, entitlements relating to 488764 Rights shares were held in
abeyance. Subsequently, during FY 2011-12, 481922 equity shares were allotted
after obtaining approval of RBI & 672 equity shares stand cancelled after
the denial of approval by RBI.
Consequent
to the above, total Rights entitlements held in abeyance stands reduced from
488764 shares to 6842 shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
809.160 |
809.160 |
809.160 |
|
(b) Reserves & Surplus |
4138.370 |
3985.110 |
4031.340 |
|
(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) |
4947.530 |
4794.270 |
4840.500 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3063.400 |
2796.140 |
1820.150 |
|
(b) Deferred tax liabilities (Net) |
252.400 |
172.740 |
201.380 |
|
(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) |
3315.800 |
2968.880 |
2021.530 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
5076.130 |
4866.140 |
5453.570 |
|
(b) Trade payables |
1224.450 |
1055.160 |
924.430 |
|
(c) Other current
liabilities |
1080.130 |
861.210 |
550.660 |
|
(d) Short-term provisions |
981.120 |
864.100 |
834.080 |
|
Total Current Liabilities (4) |
8361.830 |
7646.610 |
7762.740 |
|
|
|
|
|
|
TOTAL |
16625.160 |
15409.760 |
14624.770 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
7956.790 |
7828.690 |
6546.500 |
|
(ii) Intangible Assets |
11.070 |
13.470 |
10.700 |
|
(iii) Capital
work-in-progress |
26.410 |
100.260 |
1513.640 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
592.630 |
592.630 |
592.630 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
57.910 |
78.170 |
495.500 |
|
(e) Other Non-current assets |
102.710 |
95.610 |
67.350 |
|
Total Non-Current Assets |
8747.520 |
8708.830 |
9226.320 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2290.130 |
1918.480 |
1393.200 |
|
(c) Trade receivables |
3996.840 |
3607.410 |
3044.050 |
|
(d) Cash and cash
equivalents |
167.290 |
145.520 |
127.460 |
|
(e) Short-term loans and
advances |
1220.540 |
885.640 |
632.890 |
|
(f) Other current assets |
202.840 |
143.880 |
200.850 |
|
Total Current Assets |
7877.640 |
6700.930 |
5398.450 |
|
|
|
|
|
|
TOTAL |
16625.160 |
15409.760 |
14624.770 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10963.190 |
10154.800 |
8547.960 |
|
|
|
Other Income |
236.690 |
221.090 |
198.720 |
|
|
|
TOTAL (A) |
11199.880 |
10375.890 |
8746.680 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2863.520 |
2580.000 |
2015.940 |
|
|
|
Purchases of Stock-in-Trade |
98.510 |
67.270 |
96.250 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(359.340) |
(448.500) |
(204.680) |
|
|
|
Employees benefits expense |
1344.580 |
1241.080 |
912.820 |
|
|
|
Other expenses |
5219.580 |
5208.290 |
3497.380 |
|
|
|
TOTAL (B) |
9166.850 |
8648.140 |
6317.710 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2033.030 |
1727.750 |
2428.970 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
696.340 |
731.040 |
575.070 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1336.690 |
996.710 |
1853.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
946.460 |
933.970 |
773.430 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
390.230 |
62.740 |
1080.470 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
142.300 |
14.300 |
297.740 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
247.930 |
48.440 |
782.730 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
971.780 |
1019.220 |
643.910 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
1.210 |
78.270 |
|
|
|
Dividend |
80.920 |
80.920 |
283.210 |
|
|
|
Tax on Dividend |
13.750 |
13.750 |
45.940 |
|
|
BALANCE CARRIED
TO THE B/S |
1125.040 |
971.780 |
1019.220 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
6026.140 |
5542.580 |
4944.860 |
|
|
|
Technical Fees |
49.150 |
109.000 |
99.620 |
|
|
|
Dividend received from Piramal Glass Ceylon PLC |
90.870 |
80.230 |
66.380 |
|
|
TOTAL EARNINGS |
6166.160 |
5731.810 |
5110.860 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
288.560 |
661.840 |
346.300 |
|
|
|
Capital Goods and Spares |
334.260 |
315.390 |
898.700 |
|
|
TOTAL IMPORTS |
622.820 |
977.230 |
1245.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.06 |
0.60 |
9.67 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
2.21 |
0.47 |
8.95 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.56 |
0.62 |
12.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.44 |
0.43 |
8.63 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.01 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.65 |
1.60 |
1.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.94 |
0.88 |
0.70 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
809.160 |
809.160 |
809.160 |
|
Reserves & Surplus |
4031.340 |
3985.110 |
4138.370 |
|
Net
worth |
4840.500 |
4794.270 |
4947.530 |
|
|
|
|
|
|
long-term borrowings |
1820.150 |
2796.140 |
3063.400 |
|
Short term borrowings |
5453.570 |
4866.140 |
5076.130 |
|
Total
borrowings |
7273.720 |
7662.280 |
8139.530 |
|
Debt/Equity
ratio |
1.503 |
1.598 |
1.645 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
8547.960 |
10154.800 |
10963.190 |
|
|
|
18.798 |
7.961 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
8547.960 |
10154.800 |
10963.190 |
|
Profit |
782.730 |
48.440 |
247.930 |
|
|
9.16% |
0.48% |
2.26% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
Rs. In Millions
|
Particular |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
LONG TERM
BORROWINGS |
|
|
|
Sales Tax Deferment Loan (Unsecured Payable in 6 equal annual installments from 2011 to 2016) |
85.760 |
128.630 |
|
SHORT-TERM
BORROWINGS |
|
|
|
a. Packing Credit
from: |
|
|
|
Corporation Bank |
304.500 |
432.490 |
|
ANZ Bank |
417.230 |
434.480 |
|
HSBC Bank |
292.380 |
433.930 |
|
CITI Bank |
0.000 |
135.770 |
|
Standard Chartered Bank |
164.780 |
0.000 |
|
Kotak Mahindra Bank |
22.880 |
0.000 |
|
b. Short Term loan
from: |
|
|
|
CITI Bank |
977.300 |
892.080 |
|
ANZ Bank |
350.000 |
0.000 |
|
Central Bank of India |
500.000 |
0.000 |
|
HSBC Bank |
0.000 |
550.000 |
|
Kotak Mahindra Bank |
550.000 |
0.000 |
|
YES Bank |
0.000 |
400.000 |
|
DBS Bank |
750.000 |
750.000 |
|
Deposits |
6.360 |
4.810 |
|
Total |
4421.190 |
4162.190 |
OPERATIONS REVIEW
As part of the long term strategy of the Company, they continue to focus on Cosmetics and Perfumery (C&P) segment. During the year this segment grew by 10% from Rs.8232.000 Millions to Rs.9093.000 Millions. They have executed multiple projects for marquee global brands from India this year.
The Specialty Food and Beverages (SF&B) Segment de-grew by 1% from Rs. 3,789 Million to Rs. 3,759 Million. This was mainly due to discontinuation of a major brand in USA.
In the Pharmaceutical segment, they maintained their leadership position in the domestic market. During the year this segment grew by 17% from Rs.4090.000 Millions to Rs.4767.000 Millions.
BUSINESS OVERVIEW:
Subject is a manufacturer of glass containers for the Cosmetics and Perfumery, Pharmaceuticals and Specialty Food and Beverage industries. PGL manufactures a wide range of glass bottles and jars, in sizes ranging from 2 ml to 2.5 litres. PGL has manufacturing facilities in India, USA and Sri Lanka.
MARKET OVERVIEW:
Market Size
· Cosmetics and Perfumery Global market size is estimated to be US$ 2.4 – US$ 2.7 billion.
· Pharmaceutical Global market size is estimated to be US$ 2.1 – US$ 2.4 billion.
· Specialty Food and Beverages is estimated to be US$ 1.5 – US$ 1.7 billion.
Cosmetics and
Perfumery Business:
The glass containers manufactured in Cosmetics and Perfumery are used to fill nail polish, perfumes, skin care creams, foundations, attars, etc. The main raw materials for glass manufacturing are semi snow quartz, soda ash, lime stone powder.
This market is broadly classified into five segments depending on the end bottle price.
· Select Clubbed as Premium Segment
· MNC - Mass
·
Low Mass
· Skin Care Clubbed as Mass Segment
· Nail Polish or Colour Cosmetics
The CandP glass packaging constitutes 52% of the current sales and has been growing at a CAGR of 19.8 % over the last 5 years. For FY 14, C&P division grew at 10%.
The Cosmetics and Perfumery Division of Piramal Glass caters to international marquee customers like LVMH, Yves Rocher, YSL, Coty, Unilever, Revlon, L’Oreal, P&G, Elizabeth Arden, Estee Lauder etc. apart from local C&P brand owners in international markets like Erkul Kozmetic, Compagnie De Diffusion, Cosmed, Expak, Baralan International, Estico Limited., Revolline Limited. These customers use the glass bottles and jars for products like nail polish, make-up foundations, perfumes, skin care creams etc.
Pharmaceuticals
Business:
It caters to the requirements of Pharmaceutical Industry for packaging like molded vials for injectibles and bottles for syrups, droppers and infusions In the Indian market, PGL enjoys a leadership position in the domestic market.
Products manufactured conform to US, Indian and European pharmacopeia in Type I, Type II and Type III formulations. PGL is a leading supplier of glass containers to both multinational and Indian pharmaceutical companies like GlaxoSmithKline, Pfizer, Cipla, Abbott, Alembic, Ranbaxy, E-Merck, Aventis, Dabur, Himalaya drugs, Dr. Reddy’s Laboratories etc.
In FY-14, this segment continued to see competition in the form of replacement with PET especially in the Oral formulations and amber glass bottles in the range of 60 ml to 100 ml. PGL has focused on export markets, mainly USA, and currently 51% of PGL Pharmaceutical division comprises of exports.
The high-end Borosilicate Glass (or Type-I Glass) market has been an attractive growth segment for PGL, particularly for exports to USA as also “deemed exports” in India as more and more injectibles manufacturing facility in India receive US FDA approval.
Specialty Food and
Beverages Business:
The Specialty Food and Beverages division provides bottles for wine, liquor and food which are often unique in design and decoration. This business is very freight intensive and hence localized. Piramal Glass is catering to this segment from Sri Lanka and USA. PGL has consciously grown in exports from Sri Lanka, earlier mainly to India, and today to Far East and Australia. In Sri Lanka the strategy has been to migrate to more and more premium customers. In USA, focus is on winning new customers and new brands in the specialty liquor segment.
Since the US acquisition, they have gradually been able to increase our sales in this segment through acquisition of new customers and retaining old ones. USA operations have an edge over its European competitors due to lower freight. PGL caters to global customers like Diageo, Pernod Ricard, Cadbury Schweppes, UB Group, etc.
CONTINGENT LIABILITIES
(Rs. In
Millions)
|
Particular |
31.03.2014 |
31.03.2013 |
|
a) Disputed Liability |
|
|
|
- Central Excise authorities |
10.300 |
10.670 |
|
- Sales Tax Authorities |
— |
— |
|
- Income Tax |
7.250 |
7.250 |
|
b) Counter Guarantees issued to others |
400.820 |
422.380 |
|
- Counter guarantees given for working
capital loan and overdraft facilities of US $ 50.50 million (PY US $ 50.50
million) granted to the wholly owned subsidiary in USA viz. Piramal Glass USA,
Inc |
2996.000 |
2715.500 |
|
- Counter guarantee given for insurance
cover granted to the wholly owned subsidiary in USA viz. Piramal Glass USA,
Inc |
83.900 |
96.670 |
|
- Counter guarantees given for working capital
loan of EURO 16.50 (PY EURO 16.50) millions granted to the wholly owned
subsidiary in Europe viz. Piramal Glass Europe SARL |
68.300 |
80.000 |
|
c) The Company has provided Corporate
Guarantees and/or has given pari passu charge on the entire fixed assets
(movable and immoveable) both present and future (except assets having
exclusive charge) of the Company situated at Jambusar and Kosamba, for Term
Loans aggregating to US $ 20 million granted to the wholly owned subsidiary
in USA viz. Piramal Glass USA, Inc. |
1198.400 |
1086.200 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10457892 |
15/10/2013 |
305,000,000.00 |
AXIS BANK LIMITED |
2ND FLR, AXIS BANK TOWER, BOMBAY DYEING MILLS COMP, PANDURANG BHUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
B88662358 |
|
2 |
10444408 |
26/07/2013 |
1,500,000,000.00 |
CENTRAL BANK OF INDIA |
CORPORATE FINANCE BRANCH, 1ST FLOOR, MMO BUILDING, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA |
B82773755 |
|
3 |
10439383 |
10/07/2013 |
500,000,000.00 |
AXIS BANK LIMITED |
AXIS HOUSE, C-2, WADIA INTERNATIONAL CENTRE, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
B80565534 |
|
4 |
10435441 |
14/05/2013 |
275,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH, AXIS HOUSE, GROUND FLOOR, C2, WADIA INTERNATIONAL CENTER, P B MARG,, MUMBAI, MAHARASHTRA - 400013, INDIA |
B79015251 |
|
5 |
10403063 |
11/01/2013 |
1,000,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL |
B68115963 |
|
6 |
10367790 |
06/07/2012 |
530,000,000.00 |
THE HONG KONG AND SHANGHAI BANKING CORPORATION LIM |
LEVEL 10, 1 QUEENS ROAD CENTRAL,, HONG KONG, - 000000, HONG KONG |
B44470037 |
|
7 |
10339933 |
10/02/2012 |
1,090,000,000.00 |
AXIS BANK LIMITED |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA |
B34023788 |
|
8 |
10312725 |
22/09/2011 |
455,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH, BOMBAY DYEING MILLS COM |
B23393135 |
|
9 |
10290366 |
20/05/2011 |
450,000,000.00 |
AXIS BANK LIMITED |
CORPORATE BANKING BRANCH, BOMBAY DYEING MILLS COM |
B14341515 |
|
10 |
10181777 |
30/09/2009 |
400,000,000.00 |
INDUSIND BANK |
425 DADASAHEB BHADKAMKAR MARG, MUMBAI, MAHARASHTRA |
A71338420 |
|
11 |
90147275 |
29/11/2004 * |
640,000,000.00 |
ALLAHABAD BANK |
INDUSTRIAL FINANCE BRANCH; APPEJAY HOUSE, 3; DINS |
- |
|
12 |
90145996 |
29/08/2012 * |
3,250,000,000.00 |
ALLAHABAD BANK |
INDUSTRIAL FINANCE BRANCH, ALLAHABAD BANK BLDG, |
B57729014 |
* Date of charge modification
FIXED ASSETS
· Freehold Land
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Vehicles
· Software
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.60.10 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.80.73 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
49 |
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.