MIRA INFORM REPORT
|
Report No. : |
355726 |
|
Report Date : |
19.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
BULK LIQUID SOLUTIONS PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Plot No. 31, Nadakereppa Industrial Estate, Andrahalli, Yeshwantpur Hobli,
North Taluk, Bangalore-560091, Karnataka |
|
Tel. No.: |
91-80-65790130 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
23.02.2005 |
|
|
|
|
Com. Reg. No.: |
08-035673 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 36.881 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U24299KA2005PTC035673 |
|
|
|
|
IEC No.: |
0704024918 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRB05293B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCB5632N |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of Flexible Plastic Tanks, FIBC Bags, etc. (Confirmed by
Management) |
|
|
|
|
No. of Employees
: |
169 (Approximately) (In Office=17, In Branch=17 and In Factory=135) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (43) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 198700 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was established in the year 2005 and it is engaged in the
manufacturing, exporting and importing of flexi tanks, FIBC bags and
container liners. For the financial year ended 2015, company has reported decent growth
in its revenue profile and maintain average profit margin at 2.06% during the
year under a review. Rating takes into consideration company’s established track record of
business operations supported by its above average financial profile along
with favorable gap between trade payables to its receivables and moderate
debt coverage indicators. Rating strength is partially offset by working capital intense nature
of business operations and susceptibility to fluctuation in raw material
price imparting volatility to profitability. Trade relations are reported as fair. Payment terms are reported to be
usually correct. In view of aforesaid, the company can be considered for business
dealings at usual trade terms and condition. |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
NOT AVAILABLE
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
31-03-2015.
INFORMATION PARTED BY
|
Name : |
Mr. Suresh |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-9901508825 |
|
Date : |
17.12.2015 |
LOCATIONS
|
Registered Office/ Factory 1 : |
Plot No. 31, Nadakereppa Industrial Estate, Andrahalli, Yeshwantpur
Hobli, North Taluk, Bangalore-560091, Karnataka, India |
|
Tel. No.: |
91-80-65790130 |
|
Mobile No : |
91-9901508825 (Mr. Suresh) |
|
Fax No.: |
91-80-41172274 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
41000 Sq. Ft |
|
Location : |
Rented |
|
|
|
|
Factory 2 : |
Shed No. 1 & 2, Survey No. 37/1, Nadaker-Appa Industrial Estate,
Heggana Halli Main, Nishwaneedam Post, Bangalore-560091, Karnataka, India |
|
Area : |
50000 Sq. Ft |
|
Location : |
Rented |
|
|
|
|
Branch Office : |
Plot No. 168-175, Jawahar Co-Operative Industrial Estate,
Kamothe, Panvel Raigad District, Maharashtra, India |
|
Tel. No.: |
91-22-27433021 |
|
E-Mail : |
|
|
Area : |
2000 Sq. Ft |
|
Location : |
Rented |
DIRECTORS
AS ON 08.09.2014
|
Name : |
Mr. Allison Kabra |
|
Designation : |
Managing director |
|
Address : |
Kabra Nivas, No. 7, 12th Main, Vasanth Nagar,
Bangalore-560052, Karnataka, India |
|
Date of Birth/Age : |
01.12.1969 |
|
Qualification : |
Graduate |
|
Experience : |
15 Years |
|
Date of Appointment : |
23.02.2005 |
|
DIN No.: |
00449575 |
|
|
|
|
Name : |
Mr. Dhiren Dinesh Jain |
|
Designation : |
Additional director |
|
Address : |
No 587, 1st Floor,14th Main, 23rd Cross, Bhanashankari 2nd
Stage, Bangalore- 560070, Karnataka, India |
|
Date of Birth/Age : |
20.03.1990 |
|
Qualification : |
Graduate |
|
Experience : |
3 Years |
|
Date of Appointment : |
18.09.2014 |
|
DIN No.: |
06972620 |
KEY EXECUTIVES
|
Name : |
Mr. Suresh |
|
Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2015
|
Names of Shareholders |
|
No. of Shares |
|
Allison
Kabra |
|
123097 |
|
Anil
Mody |
|
25712 |
|
Damien
Mclean |
|
25548 |
|
Ambika
Petroleum Private Limited |
|
14432 |
|
Global
Flexi Systmes |
|
30000 |
|
Ikton
Financial Consultants Private Limited |
|
35000 |
|
Yashman
Vyapar Private Limited |
|
35000 |
|
Isotech
Tie Up Private Limited |
|
35000 |
|
RGF
Fincon Private Limited |
|
35000 |
|
Piyush
Fiscal Limited |
|
10000 |
AS ON 08.09.2014
|
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] |
21.17 |
|
Directors
or relatives of directors |
78.81 |
|
Other
top fifty shareholders |
0.02 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Flexible Plastic Tanks, FIBC Bags, etc. (Confirmed by
Management) |
|
|
|
|
Brand Names : |
-- |
|
|
|
|
Agencies Held : |
-- |
|
|
|
|
Exports : |
|
|
Products : |
Flexible Plastic Tanks, FIBC Bags |
|
Trade References
: |
· Clarion Shipping (L.L.C) · Timac Agro Industria E-Commercio de-Fertilizants Ltda |
|
Countries : |
· Dubai · Turkey · Italy · I Brazil |
|
|
|
|
Imports : |
|
|
Products : |
Liners |
|
Trade References
: |
Shanghai Hitec Plastic Co. |
|
Countries : |
China |
|
|
|
|
Terms : |
|
|
Selling : |
Credit (60 days and 90 days) |
|
|
|
|
Purchasing : |
L/C, Cash and Credit (30 days) |
PRODUCTION STATUS:
|
Particulars |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Flexible Plastic Tanks |
NA |
24000/ Year |
7200/ Year |
|
FIBC Bags |
NA |
1000000/ Year |
800000/ Year |
GENERAL INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Customers : |
End Users
|
|||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
|
No. of Employees : |
169 (Approximately) (In Office=17, In Branch=17 and In Factory=135) |
|||||||||||||||||||||||||||
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|
|
|||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
N.N. Yuvaraj and Associates Chartered Accountants |
|
Address : |
No. 23, 3rd floor, Park Road Off. Queens Road, Bengaluru-560051,
Karnataka, India |
|
Tel No.: |
91-80-22869792 |
|
Email: |
|
|
Income-tax
PAN of auditor or auditor's firm : |
AADPY2500L |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Associates/Subsidiaries : |
Not Available |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500,000 |
Equity Shares |
Rs. 100/- each |
Rs. 30.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
368,807 |
Equity Shares |
Rs. 100/- each |
Rs. 36.881 Million |
|
|
|
|
|
AS ON 08.09.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300,000 |
Equity Shares |
Rs. 100/- each |
Rs. 30.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
188,807 |
Equity Shares |
Rs. 100/- each |
Rs. 18.881
Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
36.881 |
18.881 |
18.881 |
|
(b) Reserves & Surplus |
32.698 |
11.592 |
3.266 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
4.550 |
|
Total
Shareholders’ Funds (1) + (2) |
69.579 |
30.473 |
26.697 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
179.998 |
158.608 |
162.291 |
|
(b) Deferred tax liabilities (Net) |
4.804 |
5.933 |
7.018 |
|
(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) |
184.802 |
164.541 |
169.309 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b)
Trade payables |
47.729 |
26.626 |
12.007 |
|
(c)
Other current liabilities |
2.358 |
1.883 |
1.426 |
|
(d)
Short-term provisions |
6.579 |
5.085 |
3.198 |
|
Total
Current Liabilities (4) |
56.666 |
33.594 |
16.631 |
|
|
|
|
|
|
TOTAL |
311.047 |
228.608 |
212.637 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
34.046 |
39.280 |
43.762 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.010 |
0.010 |
0.010 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
0.000 |
0.000 |
0.000 |
|
(e)
Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
34.056 |
39.290 |
43.772 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
83.725 |
53.857 |
50.904 |
|
(c)
Trade receivables |
147.130 |
117.965 |
90.250 |
|
(d)
Cash and cash equivalents |
0.317 |
3.489 |
0.231 |
|
(e)
Short-term loans and advances |
45.819 |
13.579 |
26.624 |
|
(f)
Other current assets |
0.000 |
0.428 |
0.856 |
|
Total
Current Assets |
276.991 |
189.318 |
168.865 |
|
|
|
|
|
|
TOTAL |
311.047 |
228.608 |
212.637 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
423.074 |
185.321 |
141.537 |
|
|
|
Other Income |
28.328 |
23.083 |
NA |
|
|
|
TOTAL (A) |
451.402 |
208.404 |
NA |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
345.363 |
142.912 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(16.577) |
(9.536) |
|
|
|
|
Employees benefits expense |
22.910 |
12.041 |
|
|
|
|
Other expenses |
62.493 |
30.824 |
|
|
|
|
TOTAL (B) |
414.189 |
176.241 |
NA |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
37.213 |
32.163 |
(Including
Financial and Depreciation Expenses) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
21.296 |
21.070 |
|
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
15.917 |
11.093 |
|
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5.647 |
3.777 |
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
10.270 |
7.316 |
(12.173) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.926 |
(1.010) |
0.137 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
9.344 |
8.326 |
(12.310) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
25.34 |
44.10 |
-- |
|
|
|
Diluted |
25.34 |
44.10 |
-- |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
|
|
|
|
|
Cash Generated from Operations |
NA |
NA |
NA |
|
|
|
|
|
|
Net Cash Flow from used in Operations |
NA |
NA |
NA |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
2.21 |
4.49 |
(8.70) |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
8.80 |
17.36 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.30 |
3.20 |
(5.73) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.24 |
(0.46) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.59 |
5.20 |
6.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.89 |
5.64 |
10.15 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
18.881 |
18.881 |
36.881 |
|
Reserves & Surplus |
3.266 |
11.592 |
32.698 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
4.550 |
0.000 |
0.000 |
|
Net
worth |
26.697 |
30.473 |
69.579 |
|
|
|
|
|
|
Long-term borrowings |
162.291 |
158.608 |
179.998 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
162.291 |
158.608 |
179.998 |
|
Debt/Equity
ratio |
6.079 |
5.205 |
2.587 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
141.537 |
185.321 |
423.074 |
|
|
|
30.935 |
128.293 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
141.537 |
185.321 |
423.074 |
|
Profit |
(12.310) |
8.326 |
9.344 |
|
|
(8.70%) |
4.49% |
2.21% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
Yes |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
Yes |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
No |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
80018811 |
03/08/2015 * |
152,500,000.00 |
CANARA BANK |
CANTONMENT BRANCH, NO 86 M G ROAD, BANGALORE- 560001, KARNATAKA, INDIA |
C67450064 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
|
|
5.520 |
|
Loan from shareholders |
|
17.769 |
|
Loan From Private Bank |
|
0.294 |
|
|
|
|
|
Total |
NA |
23.583 |
COMPANY PROFILE
AND HISTORY
The company was established
during 2005, promoted by Kabra family and is the first Company in India to
start the manufacture of Flexi tanks with an installed capacity of 400 Tanks
per month during 2005. The capacity increased to 3000 Tanks per month during
2007. Company diversified its product profile by manufacture of One Loop bags
of 600 kg for the fertilizer industry with a capacity of one million bags per
year. Company also manufactures One Loop bags of 1000 kg capacity and 4 Loop
bags. Company has secured ISO 9001:2000 certifications and has the pioneering
technical excellence as well as infrastructure which make Company’s products
highest level quality.
Company also extends
services like Installation and filling of Flexi Tanks, Unloading the Flexi
Tanks. The Installation of accessories helps the customers to avoid the risk of
getting their cargo contaminated by external environmental factors like
oxidation, temperature.
Company manufactures
BULKFLEXI Flexi Tanks, one of the world’s most reliable and safe Flexi Tanks.
To support the statement, Flexi Tank was successfully tested at the TTCI test
centre at Pueblo and cleared all the impact tests and criteria as stipulated
under COA conditions. Company provides most cost effective Flexi Tank to the
market of various capacities from 16000 liters to 24000 liters.
Company also
manufactures highly innovative and quality container liners. The liners are
designed and tailored to meet client’s precise individual requirements and
ensure fast, controlled loading and unloading by a wide range of systems.
Company’s container liners are quality assured and manufactured in clean
conditions from strong, durable, food grade polyethylene. The Container liners
protect a vast range of bulk chemicals and foods while offering savings of as much
as 80% of the costs of handling them by other means.
Company is one among
the global leaders in FIBC market. The fully automated state-of-the-art
manufacturing facility with stringent quality procedures enabled the company to
be the preferred vendor in the global market. The FIBC has two significant
variants of big bags i.e. One Loop bags and Four Loop bags of different
capacities.
The One Loop bags
are more economical way for transporting bulk materials. The bags are produced
from tubular body fabrics to obtain a higher breaking strength within the
fabric. These are produced in a customized manner according to the customers’
demands and needs. For hazardous goods, bags are produced with the materials
approved by UN.
Company’s products
are consumed by Pharmaceutical, Food and Fertilizer industries to transport
bulk drugs, oils, concentrates, adhesives, chemicals etc.
Company had 100% buy
back agreement with GFS, USA to buy Flexi Tanks. The Company had garnered the
market since inception and increased its presence in the fields like Food,
Pharmaceutical and Fertilizer Industries. The diversified product i.e. FIBC
loop bags manufacture was tied up with Starlinger. The Company witnessed
setback in FIBC loop bags on account of poor quality of PP Fabric available in
the market. The
Company shifted its
focus to directly market the products with own manufacturing facility i.e. own
extrusion and fabric weaving.
The Company’s
product line resulted in getting an offer from GFS, USA to buy 85% share in
2009; the offer was considered a viable one, as the Company will have a direct
marketing subsidiary in US to offload the Company’s products in US. Company
notified the investments in foreign company decision to the Bank prior to
transfer of funds from the Bank account. However, the business decision was not
favourable to the Company and it has to sell the shares for a distressed amount
coupled with loss of the Flexi Tank market in the year 2010.
The Company’s
fortunes was mixed during the year 2010 with loss of Flexi Tank market, failure
to recover the money from EPT towards the supplies made and find new client to
supply FIBC bags. Added to the mixed fortunes, Pollution Control board issued
closure notice to the Company during 2011, Company brought the stay to continue
its activity, but failed to get favorable verdict from the Court and Pollution
Control Board issued closure notice for existing manufacturing unit during
2013.
The Company swiftly
moved to a smaller unit for production of Flexi Tanks only and decided to
outsource the manufacturing activity of FIBC Loop bags, which further reduced
the margins available to the Company.
In the light of
above events the Company’s cash flows was seriously affected and monitoring of
manufacturing activities and meeting of commitments to the Bank towards its
deficit accounts was a herculean task. The Company managed the stress and was
trying hard to infuse the required long term funds so as to reverse the trend
and regain the lost market and continue to be the market leaders again in the
products being supplied. The Promoters was successful in the infusion of long
term funds of Rs. 30.000 Million, which has already routed all the transactions
through the Bank Current Account during May 2014.
The Company has achieved expected turnover of Rs.420.000 Million in 2014-15 and made profit of Rs.10.200 Million with target of achieving turnover of Rs. 500.000 Million in 2015-16. The Company has now proposed to set up FIBC manufacturing unit for captive consumption and reduce the operating cost by manufacturing quality fabric and liner in own unit. In this context, the Company has already entered into rental agreement to set up FIBC manufacturing unit at shed No.1&2, Sy.No.37/1, Nadekerappa Industrial Area, Andrahalli Main Road, Bangalore and proposes to procure required extruder, looms, hot air oven, chiller, heat exchanger and other accessories having a total project cost of Rs.53.575 Million. The Company looks for Term Loan support of Rs.39.000 Million in this endeavour.
TRADE REFERENCES
· Marudhar Packaging
Address: #31/32, Indira
Priyadarshnin Nagar, Doddanna Industrial Estate, Main Road, bangalore ,
Karnataka, India
Contact No.: 91-9916297199 [Mr.
Naveen]
· Synthetic Packers Private Limited
Address: 262/263, 4th
Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Contact No.: 91-80-40506424
FIXED ASSETS:
Tangible Assets
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipment
·
Computer Equipments
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. 66.42 |
|
|
1 |
Rs. 99.17 |
|
Euro |
1 |
Rs. 72.14 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
IND |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
43 |
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.