MIRA
INFORM REPORT
|
Report Date : |
04.03.2014
|
IDENTIFICATION DETAILS
|
Name : |
AVERY DENNISON (INDIA) PRIVATE
LIMITED |
|
|
|
|
Registered Office : |
A-38, Kailash Colony, New Delhi –
110 048 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
08.12.1995 |
|
|
|
|
Com. Reg. No.: |
55-074475 |
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs.476.507
Millions |
|
|
|
|
CIN No.: [Company Identification No.] |
U74899DL1995PTC074475 |
|
|
|
|
TAN No.: [Tax Deduction & Collection Account No.] |
DELA05957A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA6163D |
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|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Subject is primarily engaged in
manufacture of self-adhesive paper, films and labels. |
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|
|
|
No. of Employees : |
415 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B
(35) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability
to overcome financial difficulties seems comparatively below average. |
Small |
|
Maximum Credit Limit : |
USD
4739000 |
|
|
|
|
Status : |
Moderate
|
|
|
|
|
Payment Behaviour : |
Slow
but correct |
|
|
|
|
Litigation : |
Clear
|
|
|
|
|
Comments : |
Subject is an established company
having moderate track record. Company has incurred loss from its
operation in the year 2013. However, trade relations are fair.
Business is active. Payment terms are slow but correct. The company can be considered for
business dealings with some caution. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The worst is over for India’s
economy with gross domestic product likely to expand 5 %to 5.5 % this year and
more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee
and current account deficit are under control, said the agency. Ratings firm
Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for
2013/14. Total economic growth, infrastructure bottlenecks and lack of
transparency and consistency in foreign direct investment policies seem to have
taken a toll on India’s attractiveness as an investment destination, says an
Ernst & Young survey. Projects with FDI component fell 16.4 % across
the globe in 2012 from the previous year. The drop in India was steeper
at 21 %. State run carrier Air India is doling out free tickets to its 24000
employees, even as it expects to incur a loss of Rs 39000 mn this financial year
and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in
2013, a fall of 0.4 % as compared to with a year earlier. The
National Capital Region has a one-fourth share in total jobs created,
according to a study by industry lobby group Assochem, Banks, real estate,
automobile and telecommunications sectors are showing a rise of job creation. $
805 mn investments by venture capital firms in India during 2013, registering a
drop of about 18 % over the previous year. The Information Technology and
IT-Enabled Services Industry retained its status as the favourable venture
capital investors in 2013. Pakistan has temporarily banned gold imports for the
second time in six months, as it tries to stem smuggling into India. India’s
import duty on gold is 10 % and curbs on purchases have dried up legal imports
into what used to be the world’s biggest bullion buyers. The World Gold Council
puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve
Bank of India has proposed that unclaimed bank deposits estimated to be about
Rs 35000 mn be used for education and awareness among depositors.
According to the plan, deposits that have not been claimed for at least 10
years will be transferred to the scheme.
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 : |
A-38, Kailash Colony, New Delhi –
110 048, India |
|
Tel No.: |
Not Available |
|
Mobile No.: |
91-9920869666 (Mr. Parag) 91-9871008251 (Mr. Mahijit Pal) |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office 1 : |
204-206, Tolstoy House, 15 Tolstoy
Marg, Connaught Place, New Delhi – 110 001, India |
|
Tel. No.: |
91-11-23714408/ 10 |
|
E-Mail : |
|
|
Area : |
2350 sq. ft. |
|
Location : |
Leased |
|
|
|
|
Head
Office 2 : |
Plot No.6B, Kiadbi Industrial
Area, Peenya, 1st Phase, Bangalore – 560 058, Karnataka, India |
|
Tel No.: |
91-80-41370400 |
|
|
|
|
Corporate Office 1 : |
421/422, Shrikant Chambers, Sion
Trombey Road, Next to R.K. Studio, Chembur,
Mumbai – 400 071, Maharashtra, India |
|
Tel No.: |
91-22-67554625 / 31080968 /
67554626 |
|
Fax No.: |
91-22-67554623 |
|
|
|
|
Corporate Office 2/ Factory: |
Narsinghpur Industrial Area, 6
Kilometer Stone, Delhi-Jaipur Highway, Gurgaon – 122 001, Haryana, India |
|
Tel. No.: |
91-124-4351200/ 2215581/ 582/ 583 |
|
Fax No.: |
91-124-2215591/ 592 |
|
Area : |
6 Acres |
|
Location : |
Industrial |
|
|
|
|
Branch
Office : |
90/91, 7th Main Road,
III Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India |
|
Tel No.: |
91-80-41370400 |
|
Fax No.: |
91-80-41370600 |
DIRECTORS
AS ON 13.09.2013
|
Name : |
Mr. Rishi Pardal |
|
Designation : |
Whole-Time Director |
|
Address : |
6A, 6th Floor, Lords
Apartment, 94 Satyadev Avenue, MRC Nagar, R.A. Puram, Chennai – 600 028,
Tamilnadu, India |
|
Date of Birth/ Age : |
16.05.1973 |
|
Qualification : |
Mgmt. Degree from IIIT |
|
Date of Appointment : |
01.01.2011 |
|
DIN No.: |
02470061 |
|
PAN No.: |
AIFPP2134F |
|
|
|
|
Name : |
Mr. Anil Kumar Sharma |
|
Designation : |
Whole-Time Director |
|
Address : |
MF 11, Eldeco Mansionz, RWA, Sohna
Road, Gurgaon – 122 001, Haryana, India |
|
Date of Birth/ Age : |
06.10.1969 |
|
Qualification : |
B.E. / B. Tech., MBA |
|
Date of Appointment: |
10.02.2011 |
|
DIN No.: |
03161485 |
|
PAN No.: |
ABAPS0242D |
|
|
|
|
Name : |
Mr. Satish Subramanian |
|
Designation : |
Director |
|
Address : |
B-403, Salapuria Splendor, 20 Nr
Colony, Off Old Airport Road, Bangalore – 560 017, Karnataka, India |
|
Date of Birth/ Age : |
20.12.1970 |
|
Qualification : |
B.Com. (Hons), MBA |
|
Date of Appointment : |
30.09.2011 |
|
DIN No.: |
03630845 |
|
PAN No.: |
AJPPS8117G |
KEY EXECUTIVES
|
Name : |
Komandur
Sanathana Krishnan Muralie |
|
Designation : |
Secretary
|
|
Address : |
D/3,
3072, Vasant Kunj, New Delhi – 110 070, India |
|
Date of Birth/Age : |
20.05.1966 |
|
Qualification : |
B.Com.,
AICWA, ACA, ACS |
|
Date of Appointment : |
03.03.2000 |
|
PAN NO. : |
ABDPM0006G |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 13.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Avery
Dennison Corporation, USA |
|
21474466 |
|
Avery
Pacific LLC, USA |
|
216949 |
|
Avery
Dennison Central Europe GmbH, Germany |
|
10400000 |
|
Paxar
B V, The Netherlands |
|
10400000 |
|
RVL
Packaging Far East Limited, Hong Kong |
|
5159245 |
|
Total |
|
47650660 |
AS ON 13.09.2013
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign
holdings [Foreign institutional investors, Foreign Companies, Foreign
Financial Institutions, Non-resident Indian or Overseas corporate bodies or
others] |
|
100.00 |
%20PRIVATE%20LIMITED%20-%20255784%2004-Mar-2014_files/image002.gif)
BUSINESS DETAILS
|
Line of Business : |
Subject is primarily engaged in
manufacture of self-adhesive paper, films and labels. |
||||||||||||||||||||||||||||||||
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011):
|
Details of production |
U.O.M |
For the year ended 31.3.2011 |
|
I- Paper and Films |
|
|
|
Installed Capacity (Annual) |
Sq. mtrs. |
203,600,000 |
|
Actual Production |
|
|
|
1.Self Adhesive Paper |
Sq. mtrs. |
131,391,593 |
|
2.Self Adhesive Film |
Sq. mtrs. |
26,718,786 |
|
II- Woven Labels |
|
|
|
Installed Capacity (Annual) |
Numbers (Nos.) |
312,000,000 |
|
Actual Production |
Numbers (Nos.) |
272,049,061 |
|
III. Hand Tags |
|
|
|
Installed
Capacity (Annual) |
Numbers (Nos.) |
1,855,024,000 |
|
Actual
Production |
Numbers (Nos.) |
827,262,923 |
|
IV. Printed labels |
|
|
|
Installed Capacity (Annual) |
Numbers (Nos.) |
463,000,000 |
|
Actual Production |
Numbers (Nos.) |
468,620,369 |
|
V. Heat Transfer |
|
|
|
Installed Capacity (Annual) |
Numbers (Nos.) |
202,800,000 |
|
Actual Production |
Numbers (Nos.) |
195,338,684 |
Note:
The
installed capacities, being a technical matter, are certified by management and
have been relied upon by the auditors *
GENERAL INFORMATION
|
No. of Employees : |
415
(Approximately) |
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Bankers : |
·
American Express Bank Limited ·
Deutsche Bank, Tolstoy House, New Delhi, India |
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Facilities : |
Notes: Long Term Borrowings Finance Leases Certain items of plant and equipment have been obtained on finance
lease basis. The legal title to these items vests with their lessor. The
lease term for such plant and machinery is 5 years and interest payable at 8%
p.a., with equated monthly payments beginning from the month subsequent to
the commencement of the lease. There are no exceptional /restrictive
covenants in the lease agreement. The total future minimum lease payments at
the balance sheet date, element of interest included in such payments, and
present value of these minimum lease payments are as follows:
|
|
|
|
|
Banking Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR
and Company Chartered
Accountants |
|
Address : |
Delhi,
India |
|
PAN No.: |
AAAFB9852F |
|
|
|
|
Ultimate
holding company: |
Avery
Dennison Corporation |
|
|
|
|
Subsidiaries
of ultimate holding company: |
·
Avery Corp. ·
Avery Dennison R.I.S. France S. A. S. ·
Avery Dennison (China) Company Limited ·
Avery Dennison R.I.S. Iberia S.L. ·
Avery Dennison (Guangzhou) Company Limited ·
Avery Dennison R.I.S. Italia S.R.L. ·
Avery Dennison (Hong Kong) Limited ·
Avery Dennison Retail Information Services (Pty) Limited ·
Avery Dennison (Kunshan) Company Limited ·
Avery Dennison Retail Information Services Honduras, S. De
R.L. ·
Avery Dennison (Malaysia) Sdn. Bhd. ·
Avery Dennison Retail Information Services LLC ·
Avery Dennison (Suzhou) Co. Limited ·
Avery Dennison Retail Information Services UK Limited ·
Avery Dennison (Thailand) Limited ·
Avery Dennison Rfid Company ·
Avery Dennison Belgie Bvba ·
Avery Dennison RIS Iberia SL ·
Avery Dennison Benelux Bvba ·
Avery Dennison Ris Taiwan Limited ·
Avery Dennison Bulgaria Eood ·
Avery Dennison Ris Vietnam Co. Limited ·
Avery Dennison Bv ·
Avery Dennison Scandinavia Ab ·
Avery Dennison Central Europe Gmbh ·
Avery Dennison Singapore (Pte) Limited ·
Avery Dennison Colombia S. A. ·
Avery Dennison South Africa (Proprietary) Limited ·
Avery Dennison Deutschland Gmbh ·
Avery Dennison Tekstil Urunleri Sanayi Ve Ticaret Limited
Sirketi ·
Avery Dennison Do Brasil Limiteda. ·
Collitex S.R.L. (Former Astria S.R.L.) ·
Avery Dennison Egypt LLC ·
Dennison Manufacturing Company ·
Avery Dennison Etiket Ticaret Limited Sirketi ·
P. T. Paxar Indonesia ·
Avery Dennison Finance Germany Gmbh ·
Paxar (China) Limited. ·
Avery Dennison France S.A.S. ·
Paxar Bangladesh Limited ·
Avery Dennison Gulf Fzco ·
Paxar Far East Limited ·
Avery Dennison Hong Kong B.V. ·
Paxar Pakistan (Private) Limited ·
Avery Dennison Korea Limited ·
Pt Avery Dennison Indonesia ·
Avery Dennison Lanka (Private) Limited ·
Su Zhou Feng Yi Heng Ye Dye Co. Limited ·
Avery Dennison Mauritius Limited. ·
Avery Dennison Ntp A. S. ·
Avery Dennison Peru S. R. L. |
CAPITAL STRUCTURE
AS ON 13.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
47650660 |
Equity
Shares |
Rs.10/-
each |
Rs.476.507
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
47650660 |
Equity
Shares |
Rs.10/- each |
Rs.476.507
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a)
Share Capital |
476.507 |
476.507 |
476.507 |
|
(b)
Reserves & Surplus |
708.232 |
826.745 |
850.774 |
|
(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) |
1184.739 |
1303.252 |
1327.281 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
0.000 |
11.628 |
19.599 |
|
(b) Deferred tax liabilities (Net) |
20.137 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) Long-term
provisions |
42.864 |
34.509 |
28.102 |
|
Total Non-current
Liabilities (3) |
63.001 |
46.137 |
47.701 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2576.654 |
1951.284 |
1252.499 |
|
(b) Trade payables |
1631.819 |
1761.595
|
1339.081
|
|
(c) Other current liabilities |
152.256 |
119.012
|
149.496
|
|
(d) Short-term
provisions |
20.710 |
14.891
|
20.874
|
|
Total Current
Liabilities (4) |
4381.439 |
3846.782 |
2761.950 |
|
|
|
|
|
|
TOTAL |
5629.179 |
5196.171 |
4136.932 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1819.478 |
1861.756 |
1113.108 |
|
(ii) Intangible Assets |
12.000 |
3.892 |
7.868 |
|
(iii) Capital work-in-progress |
11.578 |
47.779 |
153.872 |
|
(iv) Intangible assets under development
or work-in-progress |
0.000 |
1.068 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
23.332 |
|
(d) Long-term Loan
and Advances |
213.129 |
205.387 |
236.167 |
|
(e) Other
Non-current assets |
1.237 |
4.845 |
4.567 |
|
Total Non-Current
Assets |
2057.422 |
2124.727 |
1538.914 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1117.194 |
1001.104
|
593.862
|
|
(c) Trade receivables |
2118.354 |
1711.985
|
1627.582
|
|
(d) Cash and cash equivalents |
59.648 |
59.782
|
53.821
|
|
(e) Short-term loans and advances |
276.561 |
298.013 |
322.519 |
|
(f) Other current assets |
0.000 |
0.560 |
0.234 |
|
Total Current
Assets |
3571.757 |
3071.444 |
2598.018 |
|
|
|
|
|
|
TOTAL |
5629.179 |
5196.171 |
4136.932 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
NA |
NA |
NA |
|
|
|
Other
Income |
NA |
NA |
NA |
|
|
|
TOTAL |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
TOTAL |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
Less |
TAX |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) AFTER TAX |
(116.441) |
(21.957) |
300.689 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN CURRENCY |
1333.100 |
825.800 |
771.492 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw
Materials |
NA |
NA |
2576.823 |
|
|
|
Traded
(including merchant exports) |
NA |
NA |
122.611 |
|
|
|
Capital
Goods |
NA |
NA |
111.321 |
|
|
|
Stores
and Spares |
NA |
NA |
16.076 |
|
|
|
Consumables |
NA |
NA |
16.124 |
|
|
TOTAL IMPORTS |
NA |
NA |
2842.955 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss) Per Share (Rs.) |
(2.44) |
(0.46) |
6.31 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.17 |
1.51
|
0.96 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.82 |
0.80
|
0.94
|
FINANCIAL ANALYSIS
[all figures are in
Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
476.507 |
476.507 |
476.507 |
|
Reserves & Surplus |
850.774 |
826.745 |
708.232 |
|
Net worth |
1327.281 |
1303.252 |
1184.739 |
|
|
|
|
|
|
long-term borrowings |
19.599 |
11.628 |
0.000 |
|
Short term borrowings |
1252.499 |
1951.284 |
2576.654 |
|
Total borrowings |
1272.098 |
1962.912 |
2576.654 |
|
Debt/Equity ratio |
0.958 |
1.506 |
2.175 |
%20PRIVATE%20LIMITED%20-%20255784%2004-Mar-2014_files/image004.gif)
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 |
Yes |
|
9] |
Name
of person contacted |
No |
|
10] |
Designation
of contact person |
No |
|
11] |
Turnover
of firm for last three years |
No |
|
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 |
Yes |
|
33] |
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
No |
INDEX OF CHARGES:
|
S.No |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
90194318 |
29/08/2001 * |
11,500,000.00 |
THE BANK OF NOVASCOTIA |
BANGLORE BRANCH; M G
ROAD, BANGLORE, KARNATAKA - 560001, INDIA |
- |
|
2 |
90194273 |
07/06/2002 * |
11,500,000.00 |
STATE BANK OF INDIA |
INDUSRIAL FINANCE
BRANCH, RESIDENCY ROAD, BANGLORE, KARNATAKA - 560025, INDIA |
- |
* Date of charge modification
|
Unsecured Loans |
31.03.2013 (Rs. in
Millions) |
31.03.2012 (Rs. in
Millions) |
|
SHORT TERM BORROWINGS |
|
|
|
Loans repayable on demand |
|
|
|
-
Overdraft facilities from banks |
1226.654 |
1951.284 |
|
-
Working capital facilities from banks |
1350.000 |
0.000 |
|
Total |
2576.654 |
1951.284 |
Notes:
Short Term
borrowings
Overdraft
facilities from banks carry interest ranging between 11.75%-12.5% p.a., computed
on a daily basis on the actual amount utilized, and are repayable on demand.
These are covered by the corporate guarantee provided by Avery Dennison
Corporation, USA.
Working Capital facilities from
banks carry interest ranging between 12%-13% p.a., computed on a monthly basis
on the actual amount utilized, and are repayable on demand. These are covered
by the corporate guarantee provided by Avery Dennison Corporation, USA.
Note:
The Registered Office of the company
has been shifted from Block B-1,
Plot No.F-2, Mohan Cooperative Industrial Estate, Mathura Road, Delhi – 110 044 to the present address w.e.f.
04.01.2010.
COMPANY
OVERVIEW:
Subject
is a private limited company incorporated under the Companies Act, 1956. The Company
is a subsidiary of Avery Dennison Corporation USA .The Company is primarily
engaged in manufacture of self-adhesive paper, films and labels. The Company
caters to both domestic and international markets
AMALGAMATION:
Scheme of Amalgamation of Paxar
India Private Limited and RVL Packaging Private Limited with the Company
a) The Scheme of Amalgamation under
Section 391 to 394 of the Companies Act, 1956 for the amalgamation of Paxar
India Private Limited (hereinafter referred to as 'PIPL') and RVL Packaging
India Private Limited (hereinafter referred to as 'RVLPIPL'), (together
‘Transferor Companies’) with the Company (‘the Scheme’) and their respective
shareholders, with April 1, 2008, being the Appointed Date, had been sanctioned
by the Hon’ble High Court of Karnataka, the Hon’ble High Court of Judicature at
Bombay and the Hon’ble High Court at Delhi.
Upon necessary filings with the
respective Registrar of Companies, the Scheme had become effective on February
1, 2010 and the effect thereof had been given in the year ended 31st
March 2010
In terms of the Scheme, the entire
business and undertaking of Transferor Companies including all assets and
liabilities, as a going concern, stand transferred to and vested in the Company
(hereinafter referred to as ‘Amalgamation’) with effect from the Appointed
Date.
b) PIPL and RVLPIPL stand dissolved
without winding up by separate order of the Hon'ble High Court of Karnataka and
Hon'ble High Court of Judicature at Bombay.
Pursuant to the Scheme and in
consideration of the amalgamation, the Company has issued 20,800,000 equity
shares (being 13 shares for every share held in PIPL) of Rs.10/- each to
shareholders of PIPL and 5,159,280 equity shares (representing 35 shares for
every share held by RVLPIPL) to shareholders of RVLPIPL on July 23, 2010.
Pursuant to the Scheme, equity
shares issued above include –
-10,400,000 Equity shares of Rs.10
each fully paid up to Avery Dennison Central Europe GmbH and 10,400,000 equity
shares of Rs.10 each fully paid up to Paxar BV, Netherlands, in exchange for
1,600,000 equity shares of Rs.10 each fully paid held by them in the share
capital of PIPL, and
- 5,159,245 equity shares of Rs.10
each fully paid up to RVL Packaging Far East Limited, 35 equity shares of Rs.10
each fully paid up to Avery Pacific LLC in exchange for 147,408 equity shares
of Rs.10 each held by them in the share capital of RVLPIPL in the proportion of
equity shares held by them. The calls in arrears from the shareholders have
been received during the year 2008-09.
As the aforesaid equity shares have
been allotted during the current year ended 31st March 2011 and
consequent to allotment an amount of Rs.259.593 millions which had been shown
under the Share Capital Suspense in the financial statements as at 31st
March 2010 has now been transferred to share capital
c) The company had incurred merger
expenses aggregating to Rs. Nil (Previous Year Rs.52.636 millions).
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2013 (Rs. in
millions) |
31.03.2012 (Rs. in
millions) |
|
I.
Claims against the company not acknowledged as debts: |
|
|
|
a) Sales tax demands
[Net of amount paid under protest Rs.3.383 millions (previous year Rs.4.006
millions)] |
125.831 |
117.774 |
|
b)
Excise matters |
208.240 |
208.240 |
|
c)
Service tax matters |
4.245 |
4.245 |
|
d) Income tax matters
[net of amount paid under protest amounting to Rs.5.995 millions (previous
year Rs.5.995 millions)] |
5.995 |
5.995 |
|
II.
Guarantees and counter guarantees outstanding |
|
|
|
-
Excise and customs authorities |
1.237 |
3.372 |
|
-
Sales tax authorities |
0.887 |
16.347 |
III.
The Assessing officer issued an order under section 143(3) of the Income Tax Act,
1961 recommending an addition to the taxable income of Rs.36.929 millions for
the financial year 2006-07 on account of adjustment to arms length price of
international transactions pertaining to service fee paid. The Company has
filed an appeal before the CIT (Appeals) and the same is currently pending for
adjudication.
IV.
The Assessing officer issued an order under section 143(3) of Income Tax Act,
1961 recommending an addition to the taxable income of Rs.42.623 millions for the
financial year 2006-07 on account of transfer pricing adjustment on Paxar India
Private Limited (amalgamated with Avery Dennison (India) Private Limited in the
year ended March 31, 2010). The Company has filed an appeal before the CIT
(Appeals) and the same is currently pending for adjudication.
V.
The Assessing officer issued an order under section 143(3) of the Income Tax
Act, 1961 recommending an addition to the taxable income of Rs.39.049 millions
for the financial year 2007-08 on account of adjustment to arms length price of
international transactions pertaining to service fee paid. The Company has
filed an appeal before the CIT (Appeals) and the same is currently pending for
adjudication.
VI.
The Assessing officer issued an order under section 143(3) of Income Tax Act,
1961 recommending an addition to the taxable income of Rs.212.101 millions for
the financial year 2008-09 on account of adjustment to arms length price of
international transactions pertaining to service fee paid. The Company has filed
an appeal before the CIT (Appeals) and the same is currently pending for
adjudication.
VII.
The Assessing officer issued an order under section 143(3) of Income Tax Act,
1961 recommending an addition to the taxable income of Rs.5.666 millions for
the financial year 2008-09 on account of adjustment of interest on Overdue
receivables. The Company has filed an appeal before the CIT (Appeals) and the
same is currently pending for adjudication.
VIII.
The Company has filed an application dated 28 September 2011 with its
authorized dealer for further intimation of the same to the Reserve Bank of
India ("RBI") for seeking condonation in respect of delay in of
compliance with ECB regulation (Master Circular No 8/ 2010-11 Dated July 1,
2010) regarding the leasing arrangement with an foreign entity. The Company has
not received a response from RBI till date, the resultant amount of penalty, if
any, cannot be ascertained at this stage.
FIXED ASSETS:
Tangible Assets
·
Leasehold Land
·
Freehold Land
·
Buildings
·
Leasehold Improvement
·
Office Equipment
·
Computers
·
Furniture and Fittings
·
Plant and Machinery
·
Vehicles
Intangible Assets
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has
been collected from various sources including but not limited to: The
Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its
beneficial owners, controlling shareholders or senior officers as terrorist or
terrorist organization or whom notice had been received that all financial
transactions involving their assets have been blocked or convicted, found
guilty or against whom a judgement or order had been entered in a proceedings
for violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record
on Financial Crime :
Charges
or conviction registered against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges
or investigation registered against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges
or investigation registered against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No
record exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our
market survey revealed that the amount of compensation sought by the subject is
fair and reasonable and comparable to compensation paid to others for similar
services.
10] Press
Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due
Diligence do provide comments on Corporate Governance to identify management
and governance. These factors often have been predictive and in some cases have
created vulnerabilities to credit deterioration.
Our Governance Assessment focuses
principally on the interactions between a company’s management, its Board of
Directors, Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have
contravened any existing local laws, regulations or policies that prohibit,
restrict or otherwise affect the terms and conditions that could be included in
the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.61.86 |
|
UK
Pound |
1 |
Rs.103.52 |
|
Euro |
1 |
Rs.85.31 |
INFORMATION DETAILS
|
Report Prepared by : |
SMN
|
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP
CAPITAL |
1~10 |
4 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT
LINES |
1~10 |
4 |
|
--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 |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS
|
|
|
|
--RBI
|
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
35 |
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.