Page 23 - Plastcs News August 2017

COMPANY NEWS

Jindal Poly Films under SEBI scanner for alleged windfall gains

elhi-based Jindal Poly Films is under SEBI’s scanner his family. Effectively, the allegation is that Shyam Jindal
Dfor alleged windfall gains made by its promoters and his family were indirectly holding 49% in Jindal Poly’s
during the acquisition of ExxonMobil’s films business, as Netherlands subsidiary through multiple layers of shell
companies. No approval from shareholders was taken
before ‘gifting’ the 49% in the Netherlands entity to the
promoters.

Ampacet opens new
masterbatch production

facility in Dandenong,

Australia

o further increase presence in Australia,
Tmasterbatch maker Ampacet Corporation has
per hindubusinessline.com. SEBI is examining whether opened a new masterbatch production facility in
Jindal Poly gained at the cost of small shareholders by Dandenong, Australia near Victoria to manufacture
entering into a maze of overseas transactions evidently custom colours and additives.
to avoid tax. According to a complaint filed by investors,
in 2013, Jindal Poly acquired ExxonMobil’s films business, Ampacet said the “state-of-the-art facility will
which had net assets of €242 million, for a bargain price produce custom color masterbatches and houses a
of €126 million. The benefits of around €113 million (after new laboratory for product development and quality
accounting for acquisition cost) were recorded as gains in ass ur ance.”
the income statement of the acquiring company, providing P r o cess ing
an immediate boost to the buyer’s equity. The acquiring equipment at the
company was JPF Netherlands BV, in which Jindal Poly facility includes
held 51 per cent stake; the balance 49 per cent was given two twin-screw
away to promoter group entity Anchor Image & Films e xt ru de rs
Singapore virtually free. JPF Netherlands was set up with equipped with
an equity base of only €84,000, of which contribution from the latest control
the promoter-held entity, Anchor Singapore, was merely s ys tem s and
€41,000. Subsequently, JPF Netherlands was independelty
valued at Rs. 8,248 crore. It has been alleged that the semi-automatic
Jindal Poly promoters made windfall gains by acquiring bagging systems,
a stake worth around Rs. 4,000 crore (49 per cent of Rs. the statement added. Wade Noonan, Victoria’s state
8,248 crore) for barely Rs. 30 lakh (that is, €41,000 at the minister for industry and employment, welcomed
then-prevailing conversion rate of Rs. 70). The acquisition the new business. “Ampacet Australia joins an ever-
of ExxonMobil’s films business for €242 million was funded growing list of manufacturers choosing to base their
and guaranteed by the listed entity Jindal Poly, which operations in Dandenong – one of the nation’s largest
had arranged loans from SBI, Exim Bank and Societe manufacturing precincts,” Noonan said in the release.
Generale. Significantly, while Anchor Singapore was given “We are excited to watch this company grow and
49 per cent stake, neither it nor its promoters made any take its products to the world.” “We have long had a
financial contribution towards the loans. The Singapore significant presence in Australia and New Zealand,”
entity is a 100% subsidiary of Anchor India Image & Films, said Yves Carette, Ampacet president and CEo. “our
held by Soyuz Trading and Rishi Trading, which are 100% new Dandenong facility enables us to better serve our
beneficially owned and controlled by Shyam Jindal and customers’ needs.”

23 Aug ust 2017 | Plastics News