MIRA INFORM REPORT

 

 

Report Date :

27.11.2014

 

IDENTIFICATION DETAILS

 

Name :

SIGNODE INDIA LIMITED (w.e.f. 23.08.2013)

 

 

Formerly Known As :

STRAPEX INDIA LIMITED (w.e.f. 24.09.2004)

STRAPEX PACKAGING INDIA LIMITED

 

 

Registered Office :

3rd Floor, Jyothi Majestic, H. No.8-2-120/84, Road No.2, Banjara Hills, Hyderabad – 500 034, Telangana

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

13.08.2003

 

 

Com. Reg. No.:

36-091521 (New)

11-141730 (Old))

 

 

Capital Investment / Paid-up Capital :

Rs.1491.860 millions

 

 

CIN No.:

[Company Identification No.]

U74950TG2003PLC091521 (New)

U74950MH2003PLC141730 (Old)

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAHCS8120M

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of packing materials, tools, equipments, accessories, supplies and systems

 

 

No. of Employees :

1000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (72)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 35686000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “Strapex Holding Limited”. It is a well-established company having fine track record.

 

The rating reflects SIL’s well-established track record with dominant market position in the strapping and wrapping segment supported by decent financial base with adequate liquidity profile and favorable profitability levels of the company.

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good for normal business dealings 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

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

NEWS

 

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

 

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

 

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

 

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

 

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

 

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

 

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

 

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term bank facilities: AA

Rating Explanation

High degree of safety and very low credit risk.

Date

04.04.2014

 

 

Rating Agency Name

CARE

Rating

Short term bank facilities: A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

04.04.2014

 

 

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.

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Ms. Sahini 

Designation :

Admin Department

Contact No.:

91-22-24449502

Date :

26.11.2014

 

 

LOCATIONS

 

Registered Office :

3rd Floor, Jyothi Majestic, H. No.8-2-120/84, Road No.2, Banjara Hills, Hyderabad – 500 034, Telangana, India

Tel. No.:

Not Available

Fax No.:

Not Available 

E-Mail :

gaurav@itwindia.com

info@signodeindia.com

Website :

http://www.itwsingnodeindia.co.in

http://www.signodeindia.com

 

 

Factory 1 :

Rundram Village, Patancheru Mandal, Medak District – 502 329, Telangana, India

Tel. No.:

91-8455-305085

Fax No.:

91-8455-220002/ 226101

 

 

Factory 2 :

Plot No.13, Sec-2, IIE-Pantnagar, U.S. Nagar – 263 145, Uttarakhand, India

Tel. No.:

91-5944-250221 (BSNL)

91-5944-645012 (Tata)

 

 

Factory 3 :

Survey No.263 Surangi Village, Silvassa – 396240, UT of Dadra and Nagar Haveli India

Tel. No.:

91-260-2699291/ 92

Fax No.:

91-260-2699293

 

 

Sales and Service Network:

Located at:

 

·         Bangalore  

·         Bhilai         

·         Chennai     

·         Hyderabad 

·         Jamshedpur           

·         Kolkata      

·         Mumbai (Tel. No.: 91-22-24449502/ 3/ 24449022)      

·         Navi Mumbai          

·         New Delhi  

·         Rourkela    

·         Vadodara

 

 

 

 

Tools, Spares and Service Center :

No.9, KSSP Warehousing Complex, Door No.7-2-1740, Sanathnagar, Hyderabad – 500 018, Telangana, India

 

 

DIRECTORS

 

AS ON 30.09.2013

 

Name :

Mr. Ravi Venkata Siva Ramakrishna

Designation :

Managing Director

Address :

Plot No.24, Huda Layout Road, No.2, Banjara Hills, Hyderabad – 500 033, Telangana, India

Date of Birth/Age :

10.03.1956

Qualification :

Graduate in Engineering in Chemical Technology from Birla Institute of Technology and Science, Pilani and PGDM form IIM Ahmedabad

Date of Appointment :

01.12.2013

DIN No.:

0009421

PAN No.:

ACSPR9848P

Other Directorship:

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U32301HR1979PLC038643

ITW INDIA LIMITED

Director

30/11/2013

19/05/1995

31/03/2014

Active

NO

2

U74950TG2003PLC091521

SIGNODE INDIA LIMITED

Managing director

01/12/2013

01/09/2003

-

Active

NO

 

 

Name :

Mr. Gaurav Maheshwari 

Designation :

Director

Address :

103, KBR Saila Vilas, H. No.6-3-1089, Gulmohar Avenue, Somjiguda, Hyderabad – 500 082, Telangana, India

Date of Birth/Age :

08.11.1973

Qualification :

CA

Date of Appointment :

21.09.2012

DIN No.:

00085874

PAN No.:

ADFPM7016A

Other Directorship:

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U24131TG1989PTC010178

GLENVIEW PLASTICS SYSTEMS PRIVATE LIMITED

Director

07/08/2002

07/08/2002

10/05/2014

Strike off

NO

2

U26943RJ2010PTC031341

ARYATECH CEMENT PRIVATE LIMITED

Additional director

22/09/2010

22/09/2010

10/03/2011

Active

NO

3

U74950TG2003PLC091521

SIGNODE INDIA LIMITED

Whole-time director

01/12/2013

25/01/2012

-

Active

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. Vanaja Kaleru

Designation :

Secretary

Address :

Plot No. 5, Lalithanagar Colony, West Marredplly, Secunderabad – 500 026, Telangana, India

Date of Birth/Age :

19.09.1973

Date of Appointment :

01.06.2010

PAN No:

AQNPK1119M

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2013

 

Name of Shareholders

 

 

No. of Shares

 

http://www.bseindia.com/include/images/clear.gifITW India Limited , India

 

4999994

http://www.bseindia.com/include/images/clear.gifRavi Venkata Siva Ramakrishna

 

1

Sudip Ganguly

 

1

Uma Devaguptapu

 

1

Ravindra Babu Gullapalli

 

1

Namburi Lakshmi Narayana Raju

 

1

Gaurav Maheshwari 

 

1

Total

 

5000000

 

 

AS ON 30.09.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Bodies Corporate (Not mentioned above)

100.00

Total

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of packing materials, tools, equipments, accessories, supplies and systems

 

 

Products :

Item Code No.

 

Product Description

72124000

Tensional Steel Strappings

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

 

Products :

·         Finished Goods

Countries :

·         Dubai

·         Singapore

 

 

Imports :

 

Products :
  • Raw Materials

Countries :
  • Dubai
  • Singapore

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

PRODUCTION STATUS (NOT AVAILABLE)

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Wholesalers, Retailers and End Users

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

1000 (Approximately)

 

 

Bankers :

Bank Name

Citi Bank

Branch

Banjara Hills, Hyderabad

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

  • State Bank of India, Industrial Finance Branch, Nav Bharat Chambers, Raj Bhavan Road, Somajiguda, Hyderabad – 500 034, Telangana, India
  • Citi Bank N.A., 1st Floor, Queens Plaza, Sardar Patel Road, Hyderabad – 500 003, Telangana, India

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells N

Chartered Accountants

Address :

7th Floor, Building 10, Tower B, DLF Cyber City Complex, DLF City Phase II, Gurgaon – 122 002, Haryana, India

PAN N Income-tax PAN of auditor or auditor's firm :

AACFD3771D

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Company:

ITW India Limited, India (Holding company till October 22, 2013)

CIN No: U32301HR1979PLC038643

 

Strapex Holding Limited, UK (Holding company w.e.f. October 23, 2013)

 

 

Ultimate Holding Company:

Illinois Tool Works Inc., USA (Ultimate holding company till October 22, 2013)

 

 

Fellow Subsidiary Companies :
  • Orgapack GmbH, Switzerland
  • ITW Bulgaria, Bulgaria
  • ITW Mima Packaging, Finland
  • Lachenmeier A/S, Denmark
  • Banglore Integrated System Solutions Private Limited, India (CIN No: U30009KA1992PTC012766)
  • I T W Construction Service and Parts, United States
  • ITW Litec France S.A.S
  • ITW Muller
  • ITW Packaging Systems Group GMBH
  • ITW Paslode Inc. – USA
  • Loma Systems
  • M.P.S. Metal Plastik Sanayi Cember Ve Pak.SIST.IML.VE TIC.A.S.
  • OY M.Haloila AB
  • Paslode Inc., - Australia
  • Signode Engineered Products
  • Signode Export and Distributor Service
  • Signode Kabushiki Kaisha
  • Signode System GMBH
  • ITW Gunther S.A.S
  • Signode Singapore Pte Limited
  • Signode Australia
  • Signode Korea
  • Signode Packaging System Limited
  • Signode Thailand
  • ITW Packaging Malaysia Sdn Bhd
  • Signode Hong Kong Limited
  • Signode Mexico S.
  • De R.L.de C.V
  • ITW Packaging (Qingdao) Co., Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

150000000

Equity Shares

Rs.10/- each

Rs.1500.000 millions

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

149186058

Equity Shares

Rs.10/- each

Rs.1491.861 millions

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

149186046

Equity Shares

Rs.10/- each

Rs.1491.860 millions

 

 

 

 

 

Disclosure of shareholding more than five per cent in company

 

Name of Shareholders

 

No. of Shares

 

Percentage of holding

Strapex Holding Limited, UK

149186040

99.99%

 

 

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

1491.860

50.000

50.000

(b) Reserves & Surplus

10998.256

14.983

(0.635)

(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)

12490.116

64.983

49.365

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

11.288

0.000

0.000

(b) Deferred tax liabilities (Net)

39.868

0.000

0.000

(c) Other long term liabilities

9.892

1.029

1.394

(d) Long-term provisions

59.220

2.382

2.647

Total Non-current Liabilities (3)

120.268

3.411

4.041

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

920.844

23.014

28.338

(c) Other current liabilities

211.670

1.593

1.728

(d) Short-term provisions

13.283

1.939

0.451

Total Current Liabilities (4)

1145.797

26.546

30.517

 

 

 

 

TOTAL

13756.181

94.940

83.923

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1398.759

1.283

2.279

(ii) Intangible Assets

7487.531

0.000

0.000

(iii) Capital work-in-progress

63.657

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.165

0.032

0.032

(c) Deferred tax assets (net)

0.000

3.885

3.341

(d)  Long-term Loan and Advances

216.380

2.306

2.579

(e) Other Non-current assets

46.819

0.000

0.000

Total Non-Current Assets

9213.311

7.506

8.231

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1090.429

11.895

14.988

(c) Trade receivables

2260.031

29.342

30.796

(d) Cash and cash equivalents

608.730

42.849

24.596

(e) Short-term loans and advances

563.198

3.266

5.312

(f) Other current assets

20.482

0.082

0.000

Total Current Assets

4542.870

87.434

75.692

 

 

 

 

TOTAL

13756.181

94.940

83.923

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

 

 

SALES

 

 

 

 

Revenue from operations

3453.658

242.866

222.184

 

Other Income

42.620

1.768

0.907

 

TOTAL (A)

3496.278

244.634

223.091

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

1712.573

29.286

29.171

 

Purchases of Stock-in-Trade

307.537

142.481

135.596

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(44.423)

2.896

(3.382)

 

Employees benefits expense

496.121

22.619

21.426

 

Other expenses

407.010

21.931

28.115

 

TOTAL (B)

2878.818

219.213

210.926

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

617.460

25.421

12.165

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

3.955

0.270

0.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

613.505

25.151

12.165

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

485.757

1.172

1.571

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

127.748

23.979

10.594

 

 

 

 

 

Less

TAX (H)

44.119

8.361

(2.263)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-H)   (I)

83.629

15.618

12.857

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD  (J)

14.983

(0.635)

(13.492)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S (I+J)

NA

14.983

(0.635)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

175.212

0.188

 3.298

 

TOTAL EARNINGS

175.212

0.188

3.298

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials and components

31.527

19.628

25.617

 

Stores, spares and loose tools

5.694

0.000

0.000

 

Trading Goods

84.901

55.561

49.509

 

TOTAL IMPORTS

122.122

75.189

75.126

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.10/-Each)

1.48

3.12

2.57

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin PAT/ Sales

(%)

2.42

6.43

5.79

 

 

 

 

 

PBIDT / Sales

(%)

17.88

10.47

5.48

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.93

26.34

13.15

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.01

0.37

0.21

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.00

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.96

3.29

2.48

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(INR in Mlns.)

(INR in Mlns.)

(INR in Mlns.)

Share Capital

50.000

50.000

1491.860

Reserves & Surplus

(0.635)

14.983

10998.256

Share Application money pending allotment

0.000

0.000

0.000

Net worth

49.365

64.983

12490.116

 

 

 

 

Long-term borrowings

0.000

0.000

11.288

Short term borrowings

0.000

0.000

0.000

Total borrowings

0.000

0.000

11.288

Debt/Equity ratio

0.000

0.000

0.001

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(INR in Mlns)

(INR in Mlns)

(INR in Mlns)

Revenue from operations

222.184

242.866

3,453.658

 

 

9.309

1,322.043

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(INR)

(INR)

(INR)

Revenue from operations

222.184

242.866

3,453.658

Profit

12.857

15.618

83.629

 

5.79%

6.43%

2.42%

 

 

 

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

Yes

10]

Designation of contact person

Yes

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

Yes

20]

Export / Import details (if applicable)

Yes

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

Yes

 

INDEX OF CHARGES:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10512086

09/07/2014

500,000,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, NAV BHARAT CHAMBERS,, 
RAJ BHAVAN ROAD, SOMAJIGUDA, HYDERABAD, TELANGANA 
- 500034, INDIA

C14506174

2

10506802

12/06/2014

360,000,000.00

CITI BANK N.A.

1ST FLOOR, QUEENS PLAZA, SARDAR PATEL ROAD, HYDER 
ABAD, ANDHRA PRADESH - 500003, INDIA

C09713876

 

 

CORPORATE INFORMATION:

 

Subject is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The name of the Company was changed to Signode India Limited and a fresh certificate of incorporation was issued by the Registrar of Companies Maharashtra, Mumbai on August 23, 2013.It is a subsidiary of Strapex Holdings Limited, United Kingdom (UK) w.e.f. October 23, 2013. The Company is engaged in the business of industrial packaging. The Company caters to both domestic and international markets.

 

FINANCIAL REVIEW

 

During the year, the total revenues of the Company increased from Rs 244.600 millions to Rs. 3496.200 millions, with an increase of 1329.35% over the previous year. The Company made a profit before tax of Rs. 127.700 millions as against profit before tax of Rs 23.900 millions in the previous year.

 

FUTURE PROSPECTS AND BUSINESS EXPANSION

 

The Company is focusing more on expansion of its business operations in food and pharma sectors and on export of packaging equipements. It is in the process of setting up a new steel strapping line at Dahej, Gujarat. The Company is also focusing to increase the production of pre stretch film.

 

SHIFTING OF REGISTERED OFFICE

 

The Company has shifted its registered office from 5th Floor, Centre Point, Andheri Kurla Road, J B Nagar, Andheri (East), Mumbai - 400 059 to 3rd Floor, Jyothi Majestic, H. No.8-2-120/84, Road No.2, Banjara Hills, Hyderabad - 500034, Telangana, w.e.f. 9th December, 2013.

 

 

ACQUISITION OF 100% EQUITY OWNERSHIP BY STRAPEX HOLDINGS LIMITED

 

The Company during the financial year 2012-13 was a wholly owned subsidiary of ITW India Limited. (ITW)

 

On 22nd October, 2013, ITW alongwith its nominees sold the entire (50,00,000 Equity Shares) economic and legal ownership of the equity shareholding held in the Company to Strapex Holdings Limited, U.K in accordance with the terms of the Share Purchase Agreement dated 17th October, 2013 entered with Strapex Holdings Limited and its nominees. By virtue of this, the Company has become Wholly Owned Subsidiary of Strapex Holdings Limited, U.K.

 

ACQUISITION OF INDUSTRIAL PACKAGING BUSINESS

 

During the year, pursuant to the Board’s and shareholder’s approval on 3rd September, 2013 and 30th September, 2013 respectively, the Industrial packaging business of the Company has been acquired on a slump sale basis on a ‘going concern’ from ITW India Limited with effect from closure of business on 30th November, 2013.

The entire process of slump sale including transfer of all assets and liabilities and the employees to the Company was given effect to from the close of business hours on 30th November, 2013.

 

INCREASE IN AUTHORIZED SHARE CAPITAL

 

During the year, the Company has increased its authorised share capital from Rs.100.000 millions to Rs.1500.000 millions divided into 15.00 crore equity shares of Rs.10/- each.

 

 

Unsecured Loan

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Long-term Borrowings

 

 

Other loans and advances, others

11.288

0.000

Total

11.288

0.000

 

 

FIXED ASSETS:

 

·         Plant and equipment

·         Furniture and fixtures

·         Office equipment

·         Other equipments

·         Licenses

 

 

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.61.87

UK Pound

1

Rs.97.23

Euro

1

Rs.77.21 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

72

 

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

 

--

 

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.