MIRA
INFORM REPORT
|
Report Date : |
05.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
AXEL POLYMERS LIMITED |
|
|
|
|
Registered
Office : |
S. No.309,
Village-Mokshi, Sankarda-Sarli Road, Taluka-Savli, Vadodara – 391 780,
Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
21.05.1992 |
|
|
|
|
Com. Reg. No.: |
04-017678 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.43.000
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25200GJ1992PLC017678 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCA2271J |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are
Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of compounds, blends and alloys of Engineering Polymers. |
|
|
|
|
No. of Employees
: |
Information declined by the Management. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 111000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. The company has incurred loss from its operational activities during
the financial year 2013. However, trade relations are fair. Business is active. Payment terms
are slow. The company can be considered for business dealing 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.
INFORMATION DECLINED
Management non-cooperative
(Tel. No.: 91-2667-244438)
LOCATIONS
|
Registered Office/ Factory : |
S. No.309,
Village-Mokshi, Sankarda-Sarli Road, Taluka-Savli, Vadodara – 391 780,
Gujarat, India |
|
Tel. No.: |
91-2667-244438/ 244395 |
|
Fax No.: |
91-2667-244396/ 244395/ 244438 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 28.09.2013
|
Name : |
Mr.
Amitabh Gajendra Thakore |
|
Designation : |
Director |
|
Date of Birth/Age : |
23.12.1944 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
31.12.2005 |
|
DIN No.: |
00016715 |
|
|
|
|
Name : |
Mr.
Aarasp Bejan Bodhanwala |
|
Designation : |
Managing
Director |
|
Date of Birth/Age : |
19.06.1960 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
01.10.2011 |
|
DIN No.: |
00421362 |
|
PAN No.: |
AAAAA9999A |
|
|
|
|
Name : |
Mr.
Bejan
Kavasji Bodhanwala |
|
Designation : |
Whole-time Director |
|
Date of Birth/Age : |
20.05.1928 |
|
Qualification : |
B. Com |
|
Date of Appointment : |
21.05.1992 |
|
DIN No.: |
00421717 |
|
PAN No.: |
AAAAA9999B |
|
|
|
|
Name : |
Minnie Minoo Pesponji |
|
Designation : |
Director |
|
Date of Birth/Age : |
13.01.1963 |
|
Qualification : |
BDS MHA QCI |
|
Date of Appointment : |
28.02.2002 |
|
DIN No.: |
00422067 |
|
|
|
|
Name : |
Mr. Bhupendra Babarbhai Patel |
|
Designation : |
Director |
|
Date of Birth/Age : |
28.12.1951 |
|
Qualification : |
Graduate |
|
Date of Appointment : |
31.12.2005 |
|
DIN No.: |
02422171 |
|
|
|
|
Name : |
Priyank Ghanshyambhai Patel |
|
Designation : |
Director |
|
Address : |
11, Prakash Colony, Jetalpur Road, Alkapuri, Vadodara – 390 007, Gujarat,
India |
|
Date of Birth/Age : |
21.07.1988 |
|
Qualification : |
B.Com, MBA |
|
Date of Appointment : |
28.09.2013 |
|
DIN No.: |
06440158 |
|
|
|
|
Name : |
Dr. M.A. Bodhanwala |
|
Designation : |
Director Non-Executive |
|
|
|
|
Name : |
Mr. G.M. Patel |
|
Designation : |
Independent Non Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
956500 |
22.24 |
|
|
956500 |
22.24 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
956500 |
22.24 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
15800 |
0.37 |
|
|
4000 |
0.09 |
|
|
19800 |
0.46 |
|
|
|
|
|
|
210612 |
4.90 |
|
|
|
|
|
|
2461955 |
57.25 |
|
|
459909 |
10.70 |
|
|
191224 |
4.45 |
|
|
181095 |
4.21 |
|
|
10129 |
0.24 |
|
|
3323700 |
77.30 |
|
Total
Public shareholding (B) |
3343500 |
77.76 |
|
Total
(A)+(B) |
4300000 |
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) |
4300000 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 million
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of compounds, blends and alloys of Engineering Polymers. |
||||
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|
||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the Management. |
||||||||||||||||||
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|
||||||||||||||||||
|
Bankers : |
Bank of Baroda, Alkapuri
Branch, Vadodara – 390 007, Gujarat, India |
||||||||||||||||||
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|
||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Shah and Bhandari Chartered Accountants |
|
Address : |
101/38, Gautam Nagar
Society, Race Course Circle, Vadodara, Gujarat, India |
|
PAN No.: |
AAMFS8293E |
CAPITAL STRUCTURE
AS ON 28.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4300000 |
Equity Shares |
Rs.10/- each
|
Rs.43.000
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 |
43.000 |
43.000 |
43.000 |
|
(b) Reserves & Surplus |
(15.251) |
(11.261) |
(11.889) |
|
(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) |
27.749 |
31.739 |
31.111 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
17.668 |
21.659 |
26.549 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
4.300 |
0.000 |
0.000 |
|
(d) Long-term
provisions |
0.518 |
0.517 |
0.318 |
|
Total Non-current
Liabilities (3) |
22.486 |
22.176 |
26.867 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
37.109 |
33.636 |
10.475 |
|
(b)
Trade payables |
27.550 |
22.313 |
14.926 |
|
(c)
Other current liabilities |
6.017 |
6.086 |
5.701 |
|
(d) Short-term
provisions |
1.447 |
0.981 |
0.653 |
|
Total Current
Liabilities (4) |
72.123 |
63.016 |
31.755 |
|
|
|
|
|
|
TOTAL |
122.358 |
116.931 |
89.733 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
40.747 |
45.294 |
48.658 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
2.955 |
2.955 |
2.955 |
|
(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) |
0.782 |
0.782 |
0.880 |
|
(d) Long-term Loan and Advances |
2.912 |
2.913 |
2.834 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
47.396 |
51.944 |
55.327 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
31.762 |
22.704 |
11.132 |
|
(c)
Trade receivables |
27.139 |
26.141 |
13.656 |
|
(d) Cash
and cash equivalents |
7.263 |
6.740 |
3.563 |
|
(e)
Short-term loans and advances |
6.399 |
7.446 |
5.938 |
|
(f)
Other current assets |
2.399 |
1.956 |
0.117 |
|
Total
Current Assets |
74.962 |
64.987 |
34.406 |
|
|
|
|
|
|
TOTAL |
122.358 |
116.931 |
89.733 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
73.328 |
92.689 |
30.355 |
|
|
|
Other Income |
3.023 |
2.127 |
0.981 |
|
|
|
TOTAL (A) |
76.351 |
94.816 |
31.336 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
63.311 |
70.467 |
12.406 |
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
(9.562) |
(4.034) |
(2.509) |
|
|
|
Employee benefit expense |
6.383 |
6.860 |
5.031 |
|
|
|
Other expenses |
7.979 |
9.753 |
7.691 |
|
|
|
TOTAL (B) |
68.111 |
83.046 |
22.619 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8.240 |
11.770 |
8.717 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
7.571 |
6.359 |
3.669 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
0.669 |
5.411 |
5.048 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4.658 |
4.685 |
4.586 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(3.989) |
0.726 |
0.462 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.098 |
(0.138) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(3.989) |
0.628 |
0.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
0.149 |
0.175 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
CIF Value of Imports |
5.138 |
4.909 |
NA |
|
|
|
Capital Goods Purchase |
0.000 |
0.032 |
NA |
|
|
|
Material Purchase |
62.650 |
76.871 |
NA |
|
|
|
Stores and Spares Purchase |
0.431 |
1.246 |
NA |
|
|
TOTAL IMPORTS |
68.219 |
83.058 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(0.93) |
0.15 |
0.14 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(5.22)
|
0.66 |
1.91 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(5.44)
|
0.78 |
1.52 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.36)
|
0.64 |
0.54 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.14)
|
0.02 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.97
|
1.74 |
1.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04
|
1.03 |
1.08 |
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 |
43.000 |
43.000 |
43.000 |
|
Reserves & Surplus |
(11.889) |
(11.261) |
(15.251) |
|
Net
worth |
31.111 |
31.739 |
27.749 |
|
|
|
|
|
|
long-term borrowings |
26.549 |
21.659 |
17.668 |
|
Short term borrowings |
10.475 |
33.636 |
37.109 |
|
Total
borrowings |
37.024 |
55.295 |
54.777 |
|
Debt/Equity
ratio |
1.190 |
1.742 |
1.974 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Revenue from operations |
30.355 |
92.689 |
73.328 |
|
|
|
205.350 |
(20.888) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Revenue from operations |
30.355 |
92.689 |
73.328 |
|
Profit |
0.600 |
0.628 |
(3.989) |
|
|
1.98% |
0.68% |
(5.44%) |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
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 |
No |
|
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 |
90108008 |
05/02/2013 * |
68,633,000.00 |
BANK OF BARODA |
BANK OF BARODA,
ALKAPURI BRANCH, VADODARA, GUJARAT - 390007, INDIA |
B68018514 |
|
2 |
90110203 |
31/12/2003 * |
31,500,000.00 |
BANK OF BARODA |
ALKAPURI BRANCH,
BARODA, GUJARAT - 390005, INDIA |
- |
|
3 |
90109259 |
15/03/1995 |
42,500,000.00 |
BANK OF BARODA |
ALKAPURI BRANCH,
BARODA, GUJARAT, INDIA |
- |
|
4 |
90107538 |
03/10/2000 * |
14,500,000.00 |
BANK OF BARODA |
ALKAPURI BRANCH,
R.C. DUTT ROAD, BARODA, GUJARAT |
- |
|
5 |
90109150 |
08/12/2012 * |
68,633,000.00 |
BANK OF BARODA |
BANK OF BARODA, ALKAPURI
BRANCH, VADODARA, GUJARAT - 390007, INDIA |
B65418022 |
|
6 |
90107398 |
16/03/1995 * |
14,500,000.00 |
BANK OF BARODA |
ALKAPURI BRANCH,
R.C. DUTT ROAD, BARODA, GUJARAT, INDIA |
- |
* Date of charge
modification
|
Unsecured Loans |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Loans and advances from directors |
12.160 |
10.158 |
|
SHORT-TERM BORROWINGS |
|
|
|
Foreign currency term loans from banks |
0.000 |
4.087 |
|
Total
|
12.160 |
14.245 |
PERFORMANCE:
They were in the
business of Toll - Manufacturing Compounds, Blends and Alloys of Engineering
and Specialty Polymers for the last 21 years. They launched their own Brand
AXEL in 2011.
Financial year
2012-2013 was the 2nd full year of operations. Though they are in
the business for the last 20 years, they were new entrants to the market. Their
Profile was completely different than their past. They were well known to the
market for their Brand Image as AXEL.
The performance
analysis for the year; they achieved a Gross Revenue of Rs.84.642 millions
during the year. The Interest and Finance Costs for the year stood at Rs.7.182
millions which is nearly 8.80% of the Net Sales and Depreciation at Rs.4.658
millions. The RMC stood at Rs.63.310 millions; 77% of Gross Sales. With the
above costs, the profit was totally wiped out; negative.
KEY FACTORS AT A GLANCE:
This year was
their 2nd full year of Operations. The Sales for the year 2012-2013
was estimated at Rs.120.000 millions. This estimated sale was projected at the
beginning of the FY and based on the availability of timely finances. In all
sectors, there is a shortfall in targets and Projections and they are no
exception. It is an accepted fact that the Industry scenario is still not
congenial and stable. Their Industry is totally Dollar driven.
The volatility in
Dollar is beyond acceptable limits. Moreover, their business is mainly associated
with Automobile and Infrastructure Industry. Both were in low during the last
year.
The main factors
are;
·
Their Industry is totally US Dollar driven. Their
Base Polymers, Additives, Fillers, etc. are totally Imported. Thus any
variation in the prices of the RE v/s USD directly affects the cost as well as
the availability.
·
The Industry as a whole has been passing through
very tough times and the level of uncertainity is increasing day by day.
·
Customers were wary of carrying additional Stocks
in view of the volatile Market situation.
·
Payment realisation was also an issue, since last 2
years
In brief,
·
The last F Y 2012-2013 was a classic example of
Economic and Financial Turmoil; India and International. The Economic Scenario
in the USA influenced the other economies and was mainly responsible for the
crisis. Mid-year, in August; while things were looking to pick up, the volatile
$ started going upwards and downwards in the international markets.
·
The Input Costs of all their Base Raw Material as
well as Additives etc. are Dollar driven; any change in the price of USD will
directly affect the Input Raw Material prices Thus costs of Input Raw Materials
started rising up. This affected the Raw Material Costs
·
The Rupee v/s USD in 2012 v/s current rate; an
increase of more than 25% in the value of USD. In other words, the Rupee
depreciated by 25%.
·
The Average Raw Material Costs directly went up by
25% without a corresponding increase in Average Sales Price.
·
The projected Net Profit which was in the range of
8-12% was wiped out with this increase in Raw Material Costs. However, the
Company tried to save and cut down on other expenses to partly offset the
increased RM Costs.
·
As a result of this volatility of prices of USD,
the availability of Raw Material was also affected. The terms were more or less
payments against deliveries.
·
No Economy or Industry; in India or elsewhere can
take a price rise of 25% in a span of almost 12 months. It was due to their
ability and farsightedness that they could at least keep ourselves afloat.
·
In addition to the increase in RM Costs, Labour and
Electricity Costs have also shot up.
·
Cost of Finance also went upwards by nearly 18%.
With Bank rates going up, the cost of borrowed money also went upwards from
11.00% to 15.00% - this added further pressure on bottom line. In fact when the
Industries are in bad shape, Banks and Financial Institutions have performed
much better in this financial year.
·
Nothing good to report by anyone; the sentiment was
low and overall industry started to face drop in sales numbers; Sales of
Automotive were at the all time lowest and new orders were not being released
from car makers. However, spreading the business basket to other industry, Axel
could ensure sales to grow, but the bigger concern was drop in bottom line
numbers.
BUSINESS PROSPECTS
/ PROJECTIONS 2013-2014
They are one of
the oldest Companies in the field of Engineering Polymers. With the launch of
own Brand of Polymer Compounds the Directors are confident and optimistic of
generating additional revenues at a higher rate. The demand for this product
will never be in slump due to the sheer size of the Domestic Market.
The New Year
started with positive note; people started getting over the increased costs.
The required / requested price rise was also coming from some sectors; to start
with. Marketing Strategy and efforts to cater to diverse industrial
applications were showing results and sales are growing from early parts of the
year itself, newer opportunities are showing positive signs and contracted
sales opportunities are offered.
In times of such
economic slowdown, good opportunity will provide them an excellent platform.
They are confident to attain higher sales volume in the current year. They need
to focus on this and turn around the Company. Such opportunities do not always
come the way only.
FIXED ASSETS:
·
Freehold Land
·
Building
·
Factory Building
·
Plant and Machinery
·
Electrical Installations
·
Laboratory Equipments
·
Furniture and Fixtures
·
Data Processing Machines
·
Office Equipments
·
Vehicles
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
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.61.90 |
|
|
1 |
Rs.103.25 |
|
Euro |
1 |
Rs.85.14 |
INFORMATION DETAILS
|
Information Gathered
by : |
HTL |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
26 |
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.