Due Diligence Report: Ahimsa Industries Limited
Due Diligence Report: Ahimsa Industries LimitedDue Diligence ReportName of the EntityLocationOperational StatusReport DateAHIMSA INDUSTRIES LIMITED102, Iscon Elegance, Near Shapath-5, Prahalad NagarJunction, S.G. Highway, Ahmedabad-380051, Gujarat,IndiaOperationalPage 0 of 52September 03, 2015
Due Diligence Report: Ahimsa Industries LimitedCARE Due Diligence Report– INDEXSTRENGTHS AND WEAKNESSESBRIEF SNAPSHOT OF THE ENTITYORGANISATION & MANAGEMENTPROFILE OF THE PROMOTERSMANAGEMENT & BOARD OF DIRECTORSMANAGEMENT & OWNERSHIP STRUCTUREBUSINESS PROFILEBUSINESS PROFILE ANALYSISOPERATIONS OVERVIEWCUSTOMER & SUPPLIER ANALYSISBUSINESS ACTIVITY DETAILSINDUSTRY ANALYSISSITE VISIT REPORTFINANCIAL PERFORMANCEPROFITABILITY STATEMENTREVENUE ANALYSISCOST STRUCTUREBALANCE SHEET: ASSETSBALANCE SHEET: LAIBILITIESSUMMARY OF RATIOSPROFITABILITY ANALYSISLIQUIDITY ANALYSISFINANCIAL FLEXIBILITYDEBT PROTECTION INDICATORSBANKERS & AUDITORS DUE DILIGENCEKEY 72833-3637-4042-434445-4647484950-51NOTICECARE‟s Due Diligence services is an independent opinion of the entity. The report is a one-timeexercise and the information contained in this report is intended solely for recipient for specificpurpose. The said information is confidential and may be privileged, and is also prohibitedfrom disclosure. Any disclosure or further distribution of the report or use other than specified isstrictly prohibited. Nothing contained in the report is capable or intended to create any legallybinding obligations on the sender or CARE who accept no responsibility, whatsoever, for loss ordamage from the use of the said information. The due diligence is not an audit and also not arecommendation for entering into any transaction with the entity.The report is based on the information and explanations provided to CARE and /or obtained by CAREfrom reliable sources. CARE does not guarantee the accuracy, completeness or adequacy of anyinformation on which this report is based. CARE is not responsible for any error / omissions for theresults/opinions obtained for the use of this report.CARE, its directors, Rating Committee members, employees and others associated with the duediligence assignment do not have any financial liability whatsoever. Any reproduction of the report orpart of it would require explicit written approval of CARE.Page 1 of 52
Due Diligence Report: Ahimsa Industries LimitedCARE Due Diligence Report– STRENGHTS AND WEAKNESSESKey Strengths Well-experienced promoter and management team in the plastic industry. Established track record of business operations. Moderately diversified business profile Reputed client base (namely ION Exchange India Limited Indian Railway Catering and TourismCorporation, Parle Bisleri Private Limited, Eureka Forbes (Aqua Sure) (CARE AA-/A1 ) UnitedBreweries (Kingfisher).Key weaknesses Fluctuating profitability margins with net loss in FY15 Leveraged capital structure Weak debt coverage indicators Working capital intensive nature of operations Raw material price fluctuation risk. Presence in the highly regulated and competitive industry.Page 2 of 52
Due Diligence Report: Ahimsa Industries LimitedNote: To undertake the due diligence, CARE has relied at the information provided by themanagement, their deputed/ instructed by the management and Draft Red Herring Prospectus. For undertaking the financial analysis, we have primarily relied on the following financialstatements provided by the management:o Audited financials for the financial year ending March 31, 2011, audited by M/s. K.Trivedi & Co and signed by Mr.K. H. Trivedi & Co dated September 05, 2011.o Audited financials for the financial year ending March 31, 2012, audited by M/s. K.Trivedi and signed by Mr. K. H. Trivedi dated September 06, 2012.o Audited financials for the financial year ending March 31, 2013, audited by M/s. K.Trivediand signed by Mr. K. H. Trivedi dated September 05, 2013.o Audited financials for the financial year ending March 31, 2014, audited M/s. K.Trivedi and signed by Mr. K. H. Trivedi dated September 05, 2014.o Audited financials for the financial year ending March 31, 2015, audited M/s. K.Trivedi and signed by Mr. K. H. Trivedi dated July 15, 2015.H.H.H.H.H.DRHP consists of financials till March 31, 2015; thus, CARE has also considered financials till onlyMarch 31, 2015. As a part of the due diligence exercise for NSE, CARE alsoo Reviews financials submitted by the company with Ministry of Corporate Affairs.o Undertakes Site visit and management discussiono Due Diligence with lenders and auditors However, please note thato Due diligence exercise by CARE is not an audit and also not a recommendation forentering into any transaction with the entity.o CARE does not guarantee the accuracy, completeness or adequacy of any information onwhich this report is based. CARE is not responsible for any error / omissions for theresults/opinions obtained for the use of this report.Page 3 of 52
Due Diligence Report: Ahimsa Industries LimitedBRIEF SNAPSHOT OF ENTITYNameYear of IncorporationConstitutionNature of BusinessIndustryProductsRegistered OfficeLocation of PlantAhimsa Industries LimitedJanuary 24, 1996Public Limited CompanyManufacturing PET pre-form& Trading of plastic mouldingmachinery, caps and fabricPlasticPET preform, confectionery machinery, moulds & plasticprocessing machinery, plastic caps and fabric102, Iscon Elegance, Near Shapath-5, Prahalad Nagar Junction,S.G. Highway, Ahmedabad-380051, Gujarat, IndiaPlot No. 160, Devraj Industrial Estate, Piplaj Pirana Road, Piplaj,Ahmadabad, GujaratMr Ashutosh Damubhai Gandhi and Ms Sneha Ashutosh GandhiNoneKey Promoters nameKey regulatory approvals,certifications and membershipGreenpet and AhimsaMajor BrandsM/s K. H. Trivedi & CoName of the AuditorCorporation BankMajor Existing Bankers24Total number of employeesRs.3275.96 lakhTotal income for latest yearNo (As on June 30, 2015)Wilful defaulter as per CIBILLitigationsCase filed byCasesParticularsNature & AmountAgainstNumberinvolvedof CaseAILM/sAmountSahyadriDueFood andAgroIndustriesCommissionerof AILDirect Taxcommercial tax (State ofGujarat)Current statusandmanagementsresponseThe matter ison stage ofhearingCriminal21.23 lakhCivilApplicable tax Case pendingrate– inHon‟ble12.5% 2.5%High Court ofGujarat.BackgroundIncorporated in 1996, Ahimsa Industries Limited (AIL, erstwhile Ahimsa Industries Pvt Ltd) is engagedin manufacturing of polyethylene terephthalate (PET) performs since 2011 [forming 57.26% of revenuein FY15]. Furthermore, apart from the manufacturing activity, AIL is also engaged in trading ofconfectionery machinery, moulds & plastic processing machinery [forming around 5.41% of the totalrevenue in FY15], trading of fabric since January 2015 [forming 34.93% of the total revenue in FY15]and trading of caps since June 2014 [forming remaining portion of revenue in FY15].Page 4 of 52
Due Diligence Report: Ahimsa Industries LimitedThe products manufactured are sold under brand name of „Greenpet‟ and finds major application inpacking of beverages.AIL derives about 80% of income from the domestic market while remaining frominternational market from its sale of manufactured products to African countries mainly.The machinery, caps, and fabric traded are sold under the brand name of „Ahimsa‟. The machinery is100% export oriented and is exported majorly to African countries, while the caps and fabric is sold inthe domestic market.The manufacturing facility for PET performs with an installed capacity of 3000 MT as on March 31,2015 is located in Piplaj. The company has its warehouse in Mumbai & Bhiwandi.During FY15, the total operating income (TOI) of AIL stood at Rs.3275.96 lakh (compared with Rs.2176.80 lakh in FY14)and a net loss of Rs.81.53 lakh in FY15 (compared with net profit of Rs.17.08lakh in FY14).Page 5 of 52
Due Diligence Report: Ahimsa Industries LimitedORGANISATION & MANAGEMENT: PROFILE OF THE PROMOTERS, MANAGEMENT &BOARD OF DIRECTORSDetails of key promotersNameAge DesignationEducational Totalqualification years ofexperienceMr AshutoshDamubhaiGandhi49ManagingDirectorB.E (Plastic)27Ms s19ofYears of Details ofassociati the paston withexperiencecompanyHehasmore thantwenty iousorganizations.Shehasbeenworkingwith AIL19since 1996intheadministrationdepartmentResponsibilities handledOverallManagementAdministrationComments: The management of AIL rests in the hands of its key promoters Mr Ashutosh Gandhi and MsSneha Gandhi. Mr Ashutosh Damubhai Gandhi is a Plastic Engineer by qualification and has about 27 years ofexperience in the plastic industry at various levels. He manages the entire business affairs at AILincluding planning and formulating the overall business strategy and developing businessrelations for the company. Ms Sneha Ashutosh Gandhi (wife of Mr Ashutosh Gandhi) is a graduate in arts and has abouttwo decades of experience in the plastic industry. She is involve in the administration at AIL andhas also worked with General Additives Pvt ltd in the past with the marketing department. The major decisions are taken by the promoters. Furthermore, the company has recruited variouspersonnel in its second line of management having relevant experience in the industry to assistthe promoters.Page 6 of 52
Due Diligence Report: Ahimsa Industries LimitedDetails of key management personnelNameAgeMr Sanjay Agrawal51Mr ShrenikbhaiKhatwal50Ms Gajara ialOfficerCompanySecretary &ComplianceofficerEducational Approx.qualification total yearsofexperienceYears ofassociationwith thecompanyB.E galcomplianceC.S, L.L.B,2B.ComResponsibilitieshandledandComments: Mr Sanjay Agrawal, is a qualified Plastic Engineer having about 25 years of experience in theplastic industry, he had worked with leading National companies engaged in manufacturing ofhousewares products, Engineering products & Injection molding Machineries, he heads themanufacturing division at AIL. Mr Shrenikbhai Khatwal, is a commerce graduate by qualification and looks after the financeaspect of the company. Prior to joining AIL, he worked with Ashwin Textile Mill (4 years) asexcise clerk and SDC Polyurethane Private Limited (15 years) senior accounts. Ms. Gajara Joshi, is a qualified Company Secretary and L.L.B. and has been looking after thelegal and compliance matters at AIL. Prior to joining AIL, she was working withM/s.Kadambari M.Dave, CS, as CS management trainee for 15 months The second line of management consists of personnel with relevant education qualification andexperience in the industryPage 7 of 52
Due Diligence Report: Ahimsa Industries LimitedDetails of the board of ategoryExecutiveDirectorEducation Totalqualificatioyears 7ExecutiveDirectorBachelor19of shishNavnitlalShah52NonExecutive&Independent DirectorB.E1921Date ofAppointmentDetails ofthe pastexperienceHe has morethan twentyfive years ofexperience inJanuary 24,theplastic1996industry withvariousorganizations.She has beenworkingwithAILOctober 09,since 1996 in1999theadministration departmentWorked withvariousorganizationDecembers prior to18, 2014starting ownpractice from2001.December18, 2014He has morethan2decades ofexperience invarious field.Furthermore,he is also theco-founderofDalal&ShahFiscalServices Ltdand founderofWealthFirstPortfolioManagersPvt dNone1.Dalal andShah mited.4.DSFSShares andStockbrokingPrivateLimited.5.JindalPage 8 of 52
Due Diligence Report: Ahimsa Industries LimitedNameAge(Years)MrBhadreshArvindbhai Trivedi50CategoryNonExecutive&Independent DirectorEducation Totalqualificatioyears ofnexperienceBachelor28of ArtsDate ofAppointmentJune2015Details ofthe pastexperienceHehasworked withAhmadabadElectricityLimited andTorrentPowerin24, storedepartment,purchasedepartment,labourhandling andkey : AIL has two executive directors (promoters) and three non-executive directors on the board. The average industry experience of all the directors is more than two decades in various fields.However, the independent non-executive directors have been associated with the company forless than 9 months.Page 9 of 52
Due Diligence Report: Ahimsa Industries LimitedOrganization StructureBoard of DirectorsMr. Ashutosh D GandhiChairman &ManagingDirectorMr. Shernik MKhatwalaChief FinancialOfficerMr. Gajara JJoshiCompany SecretaryMr. SanjayAgrawalCEOPage 10 of 52
Due Diligence Report: Ahimsa Industries LimitedORGANISTION & MANAGEMENT: MANAGEMENT & OWNERSHIP STRUCTUREShare holding pattern as on March 31, 2015SalimLakhani4.13%Saloni A Gandhi5.27%Share HoldingMr. Sanjay Agarwal6 SharesSneha Gandhi39.79%Name of share holderMr Ashutosh D. GandhiMs Sneha GandhiMs Saloni A GandhiMr Salim LakhaniMr Sanjay AgarwalAshutosh Damubhai Gandhi HUFMr Shrenikbahi Madhukarbhai KhatwalaTotalAshutoshD. GandhiHUF6 sharesShrenikbhaiMadhukarbhaiKhatwala6 sharesAshutosh D.Gandhi50.81%No. of equity sharesheldShare in 8039.785.274.130.00045%100Comment: Mr Ashutosh Gandhi holds the highest stake, followed by Ms Sneha Gandhi and Ms SaloniGandhi.Page 11 of 52
Due Diligence Report: Ahimsa Industries LimitedAIL has a group company, following is the detail:(Rs lakh)Name of the group companyDate of incorporationRegistered officeNature of businessFinancial YearTotal IncomeNet ProfitNet worthTotal DebtGeneral Additives Pvt LtdDecember 8, 1983E 124 Ansa IND Estate, Saki Vihar Road, Sakinaka,Mumbai,Maharashtra-400072Engaged in the business to blending compounding,manufacturing, processing and trading of Natural &Synthetic Flavoring Essence, Perfumery Compounds,Essential Oils & Aromatic ChemicalsFY14FY15 age 12 of 52
Due Diligence Report: Ahimsa Industries LimitedEmployee ProfileParticularsSkilled/ Semi-Skilled EmployeesSemi-Skilled/UnskilledTotal EmployeesNos.20424Comment: The major decisions are taken by the promoters. However, the company has recruited variouspersonnel in its second line of management having relevant experience in the industry to assistthe promoters. The level of professionalization seems to be good and they have a good number of skilledemployees for the organization.Page 13 of 52
Due Diligence Report: Ahimsa Industries LimitedBUSINESS PROFILE: OPERATIONS OVERVIEWBUSINESS PROFILE ANALYSISAIL is engaged in the manufacturing of PET perform and trading of confectionery machinery, moulds &plastic processing machinery, caps and fabric.AILManufacturing of PETPreform(57.26% of revenue inFY15)Domestic Sale(forming 81.40% ofrevenue in FY15) Trading of moulds andprocessing machinery(5.41% of revenue inFY15)Trading of fabric(34.93% of revenue inFY15)Export SaleDomestic SaleExport Sale(forming 18.59% ofrevenue in FY15)(forming 0.66% ofrevenue in FY15)(forming 99.38% ofrevenue in FY15)Trading of Caps(2.40% of revenue inFY15)AIL manufactures PET pre-form as per clients requirements, further the machinery traded arealso customized as required by the client. Income from manufacturing of PET pre-form formed the majority of AIL revenue (around57.23% of the total revenue) in FY15, while income from trading of fabric (forming 34.93%)wasthe second major contributor followed by income from trading of moulds and processingmachinery (forming 5.41%) and income from trading of caps accounted for the rest. In its PET pre-form manufacturing segment the company sells its products in the domesticmarket (forming around 81.40% of its revenue from PET pre-form in FY15). The company benefits due to its established relationship with reputed brands (clientele) in itsportfolio namely ION Exchange India Limited Indian Railway Catering and TourismCorporation, Parle Bisleri Private Limited, Eureka Forbes (Aqua Sure) (CARE AA-/A1 )UnitedBreweries (Kingfisher). The company is also engaged in trading of moulds and processing machinery, which derivesmajor promotion of its revenue from the international market. Furthermore the company has diversified its product portfolio during FY15, with trading offabric and caps in the domestic market.Page 14 of 52
Due Diligence Report: Ahimsa Industries LimitedOPERATIONS OVERVIEWNature of activityIndustry segmentProducts OfferedPlant location(Manufacturing)Area of the PlantOwnership of PlantLocation advantageMarketing SetupManufacturing and TradingPlasticPET pre-form, confectionery machinery, moulds & plastic processingmachinery, plastic caps and fabricPlot No. 160, Devraj Industrial Estate, Piplaj Pirana Road, Piplaj, Ahmedbad,Gujarat4000 sq metersOwnedNoThe company undertakes direct sales efforts either from head office orthrough business representatives.Comments: AIL has its manufacturing facility located at Piplaj, Ahmadabad (Gujarat) with a total area of4000 square meter. The manufacturing facility is owned by the company. Furthermore, the company also gets PET pre-form manufactured on job-work basis wheneverneed arise for urgent execution of order, however it has been a rare instance AIL markets its products domestically and in the international market through participation intrade fairs and exhibitions, database programs, which helps the company to promote its productsand also understand customer‟s needs. AIL thrives on established relationship developed by the promoter director Mr AshutoshDamubhai Gandhi with various reputed clients over the years.Page 15 of 52
Due Diligence Report: Ahimsa Industries LimitedSegment-wise revenue analysis(Rs. 51.53%192.55%% contribution to total revenue0.02%3.38%8.10%10.37%Revenue from Trading of Machinery% y-o-y growth600.85624.97404.66172.63NA4.01-35.25-57.34% contribution to total 9.19%% contribution to total revenue0.00%0.00%0.02%0.03%- Export direct sales624.974.01404.29-35.31171.56% y-o-y growth600.85NM% contribution to total revenue89.94%42.64%18.98%5.38%Revenue from Trading of Caps% y-o-y growthNMNMNM76.66NMNMNMNM% contribution to total revenueNMNMNM2.40%Revenue from Trading of FabricNMNMNM1114.38% y-o-y growthNMNMNMNM% contribution to total 383190.6849.75Revenue from Manufacturing of PET pre-form% y-o-y growth% contribution to total revenue- Domestic direct sales% y-o-y growth% contribution to total revenue- Export direct sales% y-o-y growth- Domestic direct sales% y-o-y growthTotal Revenue% y-o-y growth-57.57Comments:Page 16 of 52
Due Diligence Report: Ahimsa Industries Limited The income derived from sale of PET pre-form have demonstrated an uptrend since inception,however there has been fluctuations in income earned from trading of machinery mainly onaccount of volatility in demand. Domestic sales from PET pre-form manufacturing are the largest revenue contributing segment(with around 46.62% share of the revenue in FY15) followed by trading income from Fabric(about 34.93%). The decline in export business was mainly on account of lower demand in the internationalmarket. The company started operations in trading of caps in FY15, through which the company derivessynergies by selling caps to customers purchasing performs. Furthermore, AIL started operations in trading of fabric in the domestic market in January 2015,which contributed a significant proportion of total revenue.Page 17 of 52
Due Diligence Report: Ahimsa Industries LimitedCUSTOMERS & SUPPLIERS ANALYSISCUSTOMER’S PROFILE AIL has a customer base of more than 25 clients majorly comprising of leading manufacturers ofpackaged water and other beverages. Furthermore, machinery trading business majorly compriseof individual customers while customer base for Fabric trading majorly comprise of readymadegarment manufacturers. AIL client base for PET pre-form comprise of reputed players like ION Exchange India LimitedIndian Railway Catering and Tourism Corporation, Parle Bisleri Private Limited, Eureka Forbes(Aqua Sure) (CARE AA-/A1 ), United Breweries (Kingfisher). AIL has high customer concentration in the PET pre-form segment with top 10 clientscontributing to more than80% of the total revenue in FY15, thereby increasing its dependence onany single client. Furthermore, customer concentration for its trading business has been low, as moldingmachinery being a onetime investment product for the clients.Page 18 of 52
Due Diligence Report: Ahimsa Industries LimitedCUSTOMERS FEEDBACKName of CustomerContact personContact detailsWhether Customer is in relation with the promoters?Since when is the customers dealing with AILFeedbackProduct DetailMegha Springs Pvt Ltd,Mr. Nagraj Rao9449596871No response from the companyPET pre-formName of CustomerContact personContact detailsWhether Customer is in relation with the promoters?Since when is the customers dealing with AILFeedbackProduct DetailNew Gujarat Cola Pvt LtdMr. Laljibhai94274 26509No2014SatisfactoryPET pre-formName of CustomerContact personContact detailsWhether Customer is in relation with the promoters?Since when is the customers dealing with AILFeedbackProduct DetailTrikuta Agro Products Pvt LtdMR.N.C. Das9419113741No response from the companyPET pre-formPage 19 of 52
Due Diligence Report: Ahimsa Industries LimitedSUPPLIERS’ PROFILE The key raw material for manufacturing of PET pre-form is Polyethylene Teraphthalateresin which constitutes approximately 90% of the total raw material cost. AIL procuresaround 80% of its raw materials from the domestic market while remaining areimported primarily from China and Thailand. The company has not entered into anylong-term contract with the suppliers. The company‟s supplier profile is concentrated with top 10 suppliers contributing toaround 80% of the total purchase in FY15. Furthermore, with established relationshipwith the suppliers the company has been able to get credit period of upto 30 days. AIL procures machinery majorly from Hilden Packing Machinery Pvt. Ltd, MacksonMachinery Pvt. Ltd. and Ingersoll Rand Inc. Furthermore, the company has beendealing with these suppliers since more than a decade and maintains long termrelationship with them. The company procures fabric for trading from the local market only.Page 20 of 52
Due Diligence Report: Ahimsa Industries LimitedSUPPLIER FEEDBACKContact personContact detailsWhether supplier is in relation with the Promoters?Since when is the supplier dealing with AILFeedbackProduct DetailB.K. Polimex India Pvt Ltd(CARE BB/A4)Mr. Murtuza9820186700No2011SatisfactoryPET ResinName of supplierContact personContact detailsWhether supplier is in relation with the Promoters?Since when is the supplier dealing with AILFeedbackProduct DetailIngersoll Rand (India) LimitedMr. Nitin Patel9825091519No2008SatisfactoryMolding MachineryName of supplierContact personContact detailsWhether supplier is in relation with the Promoters?Since when is the supplier dealing with AILFeedbackProduct DetailEsem PlastMr. Mukesh Joshi9327006458No response from the companyMolding MachineryName of supplierPage 21 of 52
Due Diligence Report: Ahimsa Industries LimitedBUSINESS ACTIVITY DETAILSKey Raw materialsLevel of Raw Material Price fluctuation riskQuality CertificationsLevel of value additionPolyethylene Teraphthalate ResinModerateNoneModerateSUPPLY SIDE ANALYSISAverage Creditor DaysRaw Material AvailabilityImport as a % of RM Purchase89 daysAdequate 20%Comments: The raw materials (mainly PET Resin) are majorly procured from the domestic market.Furthermore, the raw material prices are moderately fluctuating in nature, hence, AIL‟sprofitability remains susceptible to the rise in the raw material prices. The goods for trading of Fabric and caps are procured from domestic market only, thecompany avails credit period of upto 45 days from it suppliers of fabric. The machinery for trading activity is procured from the domestic and Internationalmarket; AIL pays around 30% in advance to its suppliers and the remaining after thegoods have been received.Page 22 of 52
Due Diligence Report: Ahimsa Industries LimitedINDUSTRY ANALYSISName of the industryProduct portfolioOverall Industry riskLevel of competitionPlastic IndustryPET pre-form, confectionery machinery, moulds & plasticprocessing machinery, plastic caps and fabricModerateHighINDUSTRY WRITE-UP:Plastics play an important role in almost every aspect of our lives. Plastics are used tomanufacture everyday products such as beverage containers, toys, and furniture. The widespreaduse of plastics demands proper end of life management.Structure of the Plastic IndustryThe entire chain in the Plastic industry can be classified into (A) manufacturing of Polymers andis called “upstream” and (B) conversion of polymers into plastic articles and is known as“downstream”. The upstream Polymer manufacturers have commissioned globally competitivesize plants with imported state-of-art technology from the world leaders. The upstreampetrochemicals industries have also witnessed consolidation to remain globally competitive. Thedownstream plastic processing industry is highly fragmented and consists of micro, small andmedium units. Plastic processed articles which were earlier exclusively reserved for Small Scalesector has now been de-reserved.The Micro Small and Medium Enterprise (MSME) Act 2006 increased the investment in plantand Machinery to Rs.5 crore and the current exemption on Excise Duty is Rs.1 crore. Thisinitiative helped the industry to increase competitiveness and meet the global challenges.Notwithstanding plastic being one of the important foreign exchange earners for the country theshare of plastics exports of the total export by India remains at an abysmal 1.5% in 2014. Indiaexported plastics of US 4,860 million in 2014 as against US 4,441 in 2013. The domesticdownstream industry comprises of 3 broad segments viz. Injection molding, Blow molding andExtrusion and caters to the requirements of a wide array of applications like packaging,automobile, consumer durables, healthcare, etc.Plastic Industry in IndiaPage 23 of 52
Due Diligence Report: Ahimsa Industries LimitedThe Indian plastics industry made a promising beginning in 1957 with the production ofpolystyrene. Thereafter, significant progress has been made and the industry has grown anddiversified rapidly. Currently, the Indian plastics industry is spread across the country,employing about 4 million people and over 2,000 exporters. It operates more than 30,000processing units, of which 85 per cent to 90% are small and medium enterprises (SMEs).Key Markets and Export Destinations In 2012–13, exports of Indian plastics stood at over US 7.2 billion, and is expected to reachUS 10 billion by 2015-16 China is the major importer of plastic products from India which wasestimated at around US 869million in 2013-14, followed by USA at US 819.93 million andUAE at US 386.18 million. Indian plastics exports have grown at a rate of 19.9%t since 2007–08Page 24 of 52
Due Diligence Report: Ahimsa Industries LimitedSITE VISIT REPORT:Plot No. 160, Devraj Industrial Estate, Piplaj PiranaRoad, Piplaj, Ahmadabad, GujaratLocation of PlantSites visitedPresence in a clusterArea of the unitNo. of employees at siteOwnership of premisesOther facilitiesPlot No. 160, Devraj Industrial Estate, Piplaj Pirana Road,Piplaj, Ahmadabad, GujaratYes4000 square meter24OwnedSign BoardAdequacy of Warehousing FacilitiesAvailability of land for future expansionSite layoutAdequacy of insurance coverageSource of powerAdequacy of powerPresence of labour unionIndustrial relationsLevel of work safetyAdequacy of storage facilitiesOperational status of plantsYesStructuredMachineryTorrent uct-wise operational detailsParticularsProduct installed capacityPET pre-formProduct capacity utilizationPET pre-formPET 71.151490.7349.691589.3652.98Page 25 of 52
Due Diligence Report: Ahimsa Industries LimitedFINANCIAL PERFORMANCE - PROFITABILITY STATEMENTRs. In LakhPeriod Ends on:Result Type:Number ofmonths in currentfinancial yearNet SalesOther Income(relatedto operations)Total OperatingIncomeMaterial CostsCost of TradedGoods Sale Accretion :Decretion to FinishedGoods StockConsumable StoresPower and FuelEmployee CostsOther ManufacturingExpensesOther ExpensesSelling ExpensesCost of SalesPBILDTDepreciationPBITInterest and FinanceChargesOperating ProfitBefore Tax (OPBT)Operating ProfitAfter Tax (OPAT)Non OperatingIncome / (Expense)Profit Before Tax(PBT)Cash AdjustmentsAdjusted ProfitBefore Tax (APBT)TaxProvision forDeferred TaxADJUSTEDPROFIT AFTERTAX (APAT)Gross Cash AccrualsMarch 31,2011ActualMarch 31,2012ActualMarch 31,2013ActualMarch 31,2014ActualMarch .59
Page 2 of 52 Due Diligence Report: Ahimsa Industries Limited CARE Due Diligence Report- STRENGHTS AND WEAKNESSES Key Strengths Well-experienced promoter and management team in the plastic industry. Established track record of business operations. Moderately diversified business profile Reputed client base (namely ION Exchange India Limited Indian Railway Catering and Tourism
RGF Due Diligence Engagement Template Terms . 1 Introduction The [Applicant] is required to submit to BIS a Due Diligence report prepared by the Due Diligence Service Provider which covers the scope of the Due Diligence work set out in Appendix 7 of the Conditional Grant Offer Letter (the "Due Diligence report"). These termsof engagement set
finalizes the due diligence report - The due diligence report must seek to prov ide the most pertinent information at a gi i i i i h il b bd f ibliven point in time in the most easily absorbed form possible - It is particularly critical to relate the due diligence report to the strategic objectives of the due diligence process.
Section 01 - Legal Due Diligence 04 1.1 Purpose of Legal Due Diligence 05 1.2 Conclusion 1 4 Section 02 - Finance Due Diligence 1 5 2.1 Purpose of Finance Due Diligence 1 6 2.2 Conclusion 2 8 Annexure 2 9 Annexure 01 - Statement of Comprehensive Income 30 Annexure 02 - Statement of Financial Position 31
Phase 1 is concerned with the basics of due diligence with a focus on tools and techniques of due diligence analysis. Day One: The basics of due diligence in the oil and gas business The changing dynamics of the global oil and gas business The strategic relevance of due diligence in market analysis
§ 1.03[1] DUE DILIGENCE 1-8 § 1.03 Benefits of the Due Diligence Investigation If not carefully conceived and managed, due diligence investiga-tions can become expensive boondoggles that never end and never lead anywhere. It should be kept in mind that process without results is useless. The due diligence investigation is all about producing .
5. Anti-bribery due diligence starts sufficiently early in the due diligence process to allow adequate due diligence to be carried out and for the findings to influence the outcome of the negotiations or stimulate further review if necessary. 6. The partners or board provide commitment and oversight to the due diligence reviews.
ahimsa pratisthayam tatsannidhau vairatyagah Yoga-Sutra II, 35 "When we have completely adopted nonviolence, our aggressive nature ceases to exist and others abandon hostility in our presence." Ahimsa has a powerful inhibiting effect on the aggressive impulse of other beings, both animals and human
standards) R MF NO DESCRIPTION TYPE SYMBOL 01 42 00 detail indicator, dashed circle, 2.5 mm (3/32") text, typical R 01 42 00 detail indicator, dashed rectangle, 2.5 mm (3/32") text, typical R 01 42 00 detail indicator for small conditions, 45 degree arrow, 2.5 mm (3/32") text, medium line R 01 42 00 dimension line: continuous, thin line with medium line for terminator R 01 42 00 dimension line .
