MIRA
INFORM REPORT
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Report Date : |
10.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
BOROSIL GLASS WORKS LIMITED |
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Registered Office : |
44, Khanna Construction House, Dr. R G Thadani Marg, Worli, Mumbai –
400 018, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
14.12.1962 |
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Com. Reg. No.: |
11-12538 |
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CIN No.: [Company
Identification No.] |
L99999MH1962PLC012538 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB11821F |
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PAN No.: [Permanent
Account No.] |
AAACB5484G |
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Legal Form : |
A public limited
liability company. The company’s
shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of
Borosilicate Glassware for Scientific and Laboratory Purpose, Industrial Glassware, Consumer Glassware and also trading in consumer Glassware. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 3100000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established company having fine track. Directors are reported as experienced,
respectable and resourceful businessmen. Their trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
44, Khanna Construction House, Dr. R G Thadani Marg, Worli, Mumbai –
400 018, Maharashtra, India |
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Tel. No.: |
91-22-2493 0362 / 2493 0366 / 2493 0370 |
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Fax No.: |
91-22-2495 0561 / 2494
8161 |
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E-Mail : |
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Website : |
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Head Office : |
410, Kalindas Udyog Bhavan, Near Century Bazar, Prabhadevi, Mumbai –
400 025, Maharashtra, India |
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TeleFax No. : |
91-22-2432 0779 / 2430 9539 / 2430 3436 |
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Email : |
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Factory 1 : |
Marol-Maroshi Road, Off Military Road, Andheri, Mumbai 400 059,
Maharashtra, India |
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Tel. No.: |
91-22-2850 8990 |
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Fax No.: |
91-22-2850 6685 |
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Factory 2 : |
Maraimalai Nagar –
603 209, Tamil Nadu, India |
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Sales Office : |
·
403/404,
Kalindas Udyog Bhavan Premises, Near Century Bazar, Worli, Mumbai 400 025,
Maharashtra, India ·
Dabriwala
House, 10 Middleton Row, Kolkata - 700 071, West Bengal, India ·
Door No. 22,
wheat Croft Road, Nungambakkam, Chennai – 600 034, Tamil Nadu, India ·
19/90,
Connaught Circus, New Delhi 110 001, India |
DIRECTORS
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Name : |
Mr. P. K. Kheruka |
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Designation : |
Director |
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Date of Birth/Age : |
23.07.1951 |
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Qualification : |
B. Com |
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Date of Appointment : |
24.11.1988 |
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Other Directorship : |
·
Gujarat Borosil Limited ·
Gujarat Fusion Glass Limited ·
General Magnets Limited ·
Window Glass Limited |
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Name : |
Mr. A. C. Dalal |
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Designation : |
Director |
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Date of Birth/Age : |
14.11.1921 |
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Date of Appointment : |
28.08.1989 |
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Other Directorship : |
·
Century Textiles and Industries Limited ·
SIL Investments Limited ·
Pilani Investment and Industries Corporation Limited |
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Name : |
Mr. K. V. Krishnamurthy |
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Designation : |
Director |
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Date of Birth/Age : |
08.05.1943 |
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Qualification : |
B. Com, F.C.A., F.IIB. |
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Date of Appointment : |
29.09.2006 |
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Other Directorship : |
·
Essar Steels Limited ·
Thirumalai Chemicals Limited ·
Asset Reconstruction Company of India Limited ·
Sundaram BNP Paribas Mutual Fund – Trustees Company Limited ·
Rap Media Limited ·
Centrum Capital Limited ·
Centrum Direct Limited ·
Essel Propack Limited ·
The Ratnakar Bank Limited |
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Name : |
Mr. B. L. Kheruka |
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Designation : |
Chairman |
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Name : |
Mr. V. N.
Nadkarni |
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Designation : |
Director |
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Name : |
Mr S. Bagai |
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Designation : |
Director |
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Date of Birth/Age : |
07.03.1956 |
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Experience : |
Advocate with
rich Experience |
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Date of Appointment : |
29.06.2002 |
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Previous Employment |
Director with C.
Net Telecon (India) Limited Prime Proteins
Limited |
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Name : |
Mr. R. Mehra |
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Designation : |
Wholetime
Director |
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Date of Birth/Age : |
54years |
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Qualification : |
B.Sc., H.N. C.
Loughborough (UK) |
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Experience : |
31 years |
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Date of Appointment : |
03.10.1981 |
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Previous Employment |
Head of
Engineering & Quality Control Department – Crompton Graves Limited |
KEY EXECUTIVES
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Name : |
Ms. Krupa
Anandpara |
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Designation : |
Company Sectary |
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Name : |
Mr. Shreevar
kheruka |
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Designation : |
Vice President |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholder |
of shares |
As a percentage
of (A+B)1 |
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Shareholding of Promoter and Promoter
Group |
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Indian |
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Individuals / Hindu Undivided Family |
300 |
0.01 |
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Bodies Corporate |
1824000 |
50.55 |
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Sub Total |
1824300 |
50.56 |
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Total Shareholding
of Promoter and Promoter Group |
1824300 |
50.56 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
400 |
0.01 |
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Financial Institutions / Banks |
562 |
0.01 |
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Insurance Companies |
111330 |
3.08 |
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Foreign Institutional Investors |
564209 |
15.64 |
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Sub-Total |
676501 |
18.74 |
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Non-institutions |
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Bodies Corporate |
470268 |
13.03 |
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Individuals |
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i. Individual shareholders holding nominal
share capital up to Rs 1 lakh |
601073 |
16.66 |
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ii. Individual shareholders holding
nominal share capital in excess of Rs. 1 lakh. |
11900 |
0.33 |
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Any other-Trust |
100 |
0 |
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NRI |
20573 |
0.57 |
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Clearing Members |
2778 |
0.08 |
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Foreign National |
975 |
0.03 |
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Sub-Total |
1107667 |
31.70 |
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Total Public
Shareholding |
1784168 |
49.44 |
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TOTAL |
3608468 |
100 |
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Shares held by Custodians and against which
Depository Receipts have been issued |
0 |
0 |
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GRAND TOTAL |
3608468 |
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of
Borosilicate Glassware for Scientific and Laboratory Purpose, Industrial Glassware, Consumer Glassware and also trading in consumer Glassware. |
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Products : |
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Exports to : |
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Australia ·
Botswana, ·
Tunisia ·
Greece ·
Denmark |
PRODUCTION STATUS
Licensed
Capacity:
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Class of goods
manufactured |
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1.
Scientific
Apparatus and Laboratory Glassware 2. Consumerware
Glassware |
Licensed capacity
is not applicable in view of the
company’s products having been delicensed. |
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Installed
Capacity on the basis of Glass melted (as certified by the Management but
note verified by the Auditors, being a technical matter) |
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31.03.2007 12900 Tons |
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Actual
Production (packed for sale) |
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26106818 Pcs |
GENERAL
INFORMATION
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Suppliers : |
·
Messers eros Minerals ·
Krishna Packaging ·
Paper Pack Industries ·
Sterling Packaging Industries ·
Jose Davis Paper Packs Private Limited ·
Jay Industries ·
Hind Paper Box Private Limited ·
Morefluon Industries ·
Ashok Leather Works ·
Spencer Prints Private Limited ·
K-2 Packaging ·
Akshar Packaging Private Limited ·
Glassage Industries ·
Sudarshan Moulds ·
Glass Hi-Tech ·
Shree Pack Industries ·
Mahalakshmi Facility Services ·
Micro Cutting Tools ·
Sarita Scientific Glass Works ·
Topsil and Victory enterprises |
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No. of Employees : |
555 |
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Bankers : |
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Bank of Baroda ·
Union Bank of India ·
The Zoroastrian Co-operative Bank Limited ·
IndusInd Bank Limited ·
ICICI Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chaturvedi and Shah Chartered Accountants |
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Associates/Subsidiaries : |
·
Gujarat Fusion Glass Limited ·
Fennel Investment and Finance Private Limited ·
Gujarat Borosil Limited ·
Vyline Glass Works Limited ·
Croton Trading Limited ·
Window Glass
Limited E-2/3, Netaji Subhash Road, Calcutta - 700 001, West Bengal Established in the year 1963 ·
Swapan
Properties Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3608468 |
Equity Shares |
Rs.10/- each |
Rs.36.085
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
36.085 |
34.291 |
34.291 |
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2] Share Warrants |
9.828 |
0.000 |
0.000 |
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3] Reserves & Surplus |
578.183 |
437.255 |
405.005 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
624.096 |
471.546 |
439.296 |
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LOAN FUNDS |
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1] Secured Loans |
147.103 |
166.935 |
263.530 |
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2] Unsecured Loans |
124.421 |
77.142 |
72.847 |
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TOTAL BORROWING |
271.524 |
244.077 |
336.377 |
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DEFERRED TAX LIABILITIES |
31.841 |
35.583 |
20.651 |
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TOTAL |
927.461 |
751.206 |
796.324 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
483.753 |
417.830 |
444.931 |
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Capital work-in-progress |
24.855 |
22.920 |
22.828 |
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INVESTMENT |
196.076 |
129.393 |
129.343 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Interest accrued on Investments |
0.074
|
0.046
|
0.000
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Inventories |
245.810
|
196.086
|
231.739
|
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Sundry Debtors |
148.670
|
122.489
|
98.677
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Cash & Bank Balances |
5.317
|
8.014
|
8.647
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Loans & Advances |
59.205
|
37.087
|
35.278
|
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Total
Current Assets |
459.076
|
363.722 |
374.341
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
156.295
|
145.566
|
154.603
|
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Provisions |
80.004
|
37.093
|
20.516
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Total
Current Liabilities |
236.299
|
182.659 |
175.119
|
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Net Current Assets |
222.777
|
181.063 |
199.222
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
927.461 |
751.206 |
796.324 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
682.595 |
649.470 |
624.144 |
|
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Other Income |
29.133 |
26.953 |
0.000 |
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Total Income |
711.728 |
676.423 |
624.144 |
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Profit/(Loss) Before Tax |
131.915 |
57.544 |
(9.808) |
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Provision for Taxation |
21.657 |
17.441 |
13.433 |
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Profit/(Loss) After Tax |
110.258 |
40.103 |
(23.241) |
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Earnings in Foreign Currency : |
66.548 |
63.103 |
36.612 |
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Imports : |
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Raw Materials |
12.596 |
13.994 |
0.000 |
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Stores & Spares |
3.385 |
3.808 |
0.000 |
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Capital Goods |
3.428 |
- |
0.000 |
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Finished Goods |
65.993 |
3.646 |
0.000 |
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Total Imports |
85.402 |
21.448 |
32.119 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
479.267 |
420.594 |
0.000 |
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Raw Material Consumed |
29.464 |
30.856 |
0.000 |
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Purchases (Trading) |
115.090 |
91.738 |
0.000 |
|
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Increase/(Decrease) in Finished Goods |
(46.655) |
3.422 |
0.000 |
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Interest |
29.242 |
29.748 |
0.000 |
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Depreciation & Amortization |
40.088 |
39.802 |
0.000 |
|
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Extra Ordinary Items (Net) |
(66.683) |
2.719 |
0.000 |
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Total Expenditure |
579.813 |
618.879 |
562.749 |
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SUMMARISED RESULTS
|
PARTICULARS |
31.03.2008 (Full Year) |
|
Sales Turnover |
716.200 |
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Other Income |
24.500 |
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Total Income |
740.700 |
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Total
Expenditure |
661.100 |
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Operating Profit |
79.600 |
|
Interest |
31.600 |
|
Gross Profit |
48.000 |
|
Depreciation |
39.400 |
|
Tax |
11.000 |
|
Reported PAT |
5.400 |
|
Dividend (%) |
0 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.85 |
1.34 |
1.74 |
|
Long Term
Debt-Equity Ratio |
0.25 |
0.61 |
0.94 |
|
Current Ratio |
0.96 |
1.01 |
1.16 |
|
Turnover Ratios |
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Fixed Assets |
1.17 |
1.23 |
1.21 |
|
Inventory |
3.34 |
3.28 |
2.84 |
|
Debtors |
5.44 |
6.34 |
5.19 |
|
Interest Cover
Ratio |
3.06 |
2.8 |
1.35 |
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Operating Profit
Margin(%) |
18.63 |
18.42 |
10.15 |
|
Profit Before
Interest And Tax Margin(%) |
13.19 |
12.75 |
5.95 |
|
Cash Profit
Margin(%) |
12.81 |
11.39 |
7.89 |
|
Adjusted Net
Profit Margin(%) |
7.37 |
5.72 |
3.68 |
|
Return On
Capital Employed(%) |
17.31 |
17.66 |
6.52 |
|
Return On Net
Worth(%) |
17.88 |
18.55 |
11 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was formed in Dec.'62 mainly to acquire the
undertaking of the Industrial and Engineering Apparatus Company Private Limited
In Jun.'90, the company came out with a rights issue.
Subject manufactures borosilicate tyre neutral and heat-resistant tubing and
rods, scientific apparatus, laboratory glassware, etc. Its plants are located
in Tamilnadu and Maharashtra. In 1963, a technical collaboration agreement was
entered into with Corning Glass Works, New York. The company has subsidiary,
namely Gujarat Borosil.
In 1995-96, the company has come out with a modernisation programme as
well as a diversification programme. As part of the modernisation programme, it
proposes to manufacture borosilicate glass tubings in the Marol plant. As part
of its diversification programme, the company has envisaged a new project at
its Marai Malai Nagar plant for the manufacture of heat resistant borosilicate
opal tableware.
A new project was envisaged at the Mari Malai Nagar Plant
for the manufacture of heat resistant
borosilicate opal tableware using an all-electric furnace based usage of
in-plant cullet.
Gujarat Borosil
Limited (formerly Gujarat Window Glass Limited) and Swapan Properties Limited
are subsidiaries of the company.
During the year
1996 ICICI Banking Corporation Limited
joined the consortium of banks for financing the working capital
requirements of the company.
During the year
1999 the company developed new export
markets in Australia, Botswana, Tunisia, Greece and Denmark.
2000 – The company
executed a tripartite contract with Jenaer Schmelztechnik Jodeit and Limenauer
Glasmaschinenbau, both of Germany pertaining to supply of technical knowhow and
equipment for modernisation cum expansion of company’s furnace at Maraimalai
Nagar, Tamilnadu.
Borosil
International, a division of Borosil Glass Works Limited has tied up with
Europe-based Bormioli Rocco, to launch a premium tableware glass collection in
India.
The company
presented the Borosil International Range, transparent, light glassware, that
includes Bake and Serve, Cook and Serfe, Carafes and Tea Sets.
The sale of imported consumerware under the brand name Borosil International
and Boromoili Rocco have performed well during 2000-2001. Gujarat Borosil Ltd
ceased to be a subsidiary of the company from 30th March 2002. In 2002-03 the
company entered into a contract with Amercian Consultant for supply of
designs,drawings,equipments and technical know-how for upgradation of furnace
No 1 by enhancing its capacity from 12 MT to 22 MT per day. To finance the
above project the company is taking steps to tie up with Banks/Institutions
etc. The company is also proposing for a rights issue of shares with the prior
approval from Shareholders at the ensuing AGM.
Company Profile
Subject was established in December 1962 in collaboration with Corning Glass
Works of U.S.A. to manufacture borosilicate low expansion glass - a type of
glass so special that it requires melting temperatures as high as 1625°C and a
technology so sophisticated that even today very few countries in the world
possess it. In December 1988, Corning divested its share holdings to the
Kheruka group who have been a leading manufacturer of sheet glass in India
since 1961 .
Today, Subject manufactures extremely high quality
Tubing, Blown ware and Press ware using state of the art equipment. All
manufacturing processes of the glass manufacturing such as melting, forming,
shaping etc. are carried out in-house, enabling built-in quality checks at
every stage. The spirit of growth and technical upgradation is a continuous
process making a world leader in specialty glass with exports covering several
countries in America , The British Isles, Eastern Europe , Africa , Middle East
and South Asia .
The ISO 9001:2000
certification is a proof of the high and consistent standards of quality
maintained by the company. Subject
has found use in over 2000 different products and applications, in areas as
diverse as Microbiology, Biotechnology, Photo Printing, Laboratory ware, Solar
Collectors, Process Systems, Lighting and Consumer ware.
In the Indian laboratory ware segment, Borosil services the Research and
Development, Industrial, Healthcare and the Educational segments of the market
and almost all leading Research and QC laboratories, Institutions, Industrial
and Healthcare laboratories are using brand products.
Performance:
During the year as compared to previous year, sales rose by about 5% i.e. from
Rs.701.288 millions to Rs.737.145 millions and profit after tax from Rs.40.103
millions to Rs.110.258 millions (including extraordinary income of Rs.66.683
millions, on account of reversal of provision made in respect of long term
investment in shares). Exports during the year were slightly higher at
Rs.66.548 millions as compared to Rs.63.103 millions in the previous
year.
New
Projects / Preferential Issue:
The Company has acquired/is in the process of acquiring around 15 acres of land
near Roorkee in the state of Uttaranchal, which can be used to set up a
manufacturing unit. The Company is still working on the financials of the said
project. The Company has kept its option open for setting up/acquiring
manufacturing unit(s) at some other place also.
For part financing of the same, the Company during the year issued 5,34,850
Warrants carrying a right to subscribe to Equity Shares to the promoter
companies on preferential basis, in terms of the resolution passed by the
shareholders at the Extraordinary General Meeting of the Company held on 4th
January, 2007. The promoters have exercised their right in respect of 1,79,390
Warrants in March 2007 and as per terms of issue equal number of equity shares
of Rs.10/- each were issued at a premium of Rs.266.50 per share in terms of
SEBI(Guidelines on Preferential Issues). As a result, the promoters' holding in
the Company has gone up from 47.97% to 50.56% of the total paid-up share
capital. The said shares have since been listed with the Bombay Stock Exchange
Limited.
Management
Discussion and Analysis Report:
Industry Structure and
Developments:
The Company is the sole manufacturer in India of low expansion borosilicate
glass which it uses to manufacture a wide variety of scientific, industrial,
lighting, pharmaceutical and consumerware glass items.
The Company supplies tubing and other products which are used by the small
scale down stream processing units to manufacture various finished products
like burettes, pipettes, flasks, condensers, ground joints, extractors etc. The
entire Research and Development, Industry, Education and Health segments of the
market are major users of scientific and industrial products, whereas
consumerware items cater to the need of the household sector.
Opportunities and Threats:
Opportunities
Scientific and Industrial Product Division caters to both Public and Private
Sector undertakings. Whereas the growth in Public Sector is limited, Private
Sector is showing sign of faster growth, particularly in the Research &
Development, Pharma & Biotech segments. This should help Company in increasing
its presence in these areas.
In view of growing disposable income, particularly among the middle class
in India, there is continuous scope of growth in consumerware items marketed by
the Company, mainly drinking glasses and microwave glassware, which the Company
will continue to tap, thereby strengthening its position in marketing these
products.
Threats:
Growing difficulty in continuing with operations at company's existing manufacturing
location at Marol. Prices of electricity have been raised unilaterally by about
70% with effect from mid-April 2007. The supply of natural gas continues to
remain very erratic, and is subject to significant cuts of upto 50% from time
to time.
Unrestricted import and dumping of scientific and industrial products by
importers from various countries.
Availability of significant quantities of spurious goods bearing Company's
brand name. In order to combat this, the Company has been conducting raids on
unscrupulous manufacturers/traders, whenever such instances come to the notice
of the Company. However, this menace is so deep that constant vigil and action
is required to tackle this.
Usage of plastics and instruments in laboratories as substitute for
glassware.
Entry of international/domestic business houses in trading of Scientific
glassware with their own well established brands (sourced mainly from small
Indian fabricators).
Segmentwise or Productionwise
Performance:
-Scientific and Industrial Product Division:
This division witnessed slight improvement in its performance as the sale
rose by nearly 3%. During the year, the Company bagged significant orders in
respect of apparatusware items, which, however, could not be fully met owing to
capacity constraints. Otherwise, the performance of this division would have
been much better.
- Consumerware Division:
During the year, the turnover of the consumerware division soared by nearly 8%,
whereon the profitability saw a frogleap of nearly 23% in-spite of fierce
competition; mainly from imported goods. This is evidence of the Company
further consolidating its position in the drinking glasses and microwave
glassware segment.
Outlook:
Scientific and Industrial Products:
The year saw further growth in the Research & Development, Pharma and
Biotech segments in the private sector and shift in such activities to India by
global organisations as well as reputed Companies in India. The process is
likely to continue in the near future.
Consumerware Products:
The Company is continuing its efforts in penetrating the market by selling its
product under brands namely Borosil., Borosil International and Napoli, which
have now become household names. The Company imports a range of products from
various international manufacturers and sells these in the domestic market
along with its own manufactured products. With the rise of consumerism in
India, sustained growth is likely in the consumerware segment, in general,
which in turn will help the Company in increasing its sales and
profitability.
Risks and Concerns:
(a) Dumping of goods by foreign competitors.
(b) Increased usage of other scientific products e.g. plastics and
instruments.
(c) Increased competition from organised sector in trading of scientific
and microwave glassware.
(d) Spurious activities.
(e) Competition from imported goods mostly from the grey market.
The
company is in trade terms with: -
·
Apala Minichem
·
Eros Minerals
·
Adinath
Minichem Industries
·
Krishna
Packaging
·
Surya
Packaging
·
Paper Pack
Industries
·
Sterling
Packaging
·
Advance
packaging
·
Jose Davis
·
Jay Industris
·
Indian Reed
Industries
·
Suraj Paper
Industries
·
National
Bakelite
·
Maulik Plastic
·
Shobha Rubber
Industries
·
Glassage
Industries
·
Shingadia Engineering
·
Vivek Art
·
Spencer Prints
·
Morefloun
Industries
·
Solar Paper
Corporation
·
K-2 Packaging
Fixed Assets
·
Land
o
Freehold
o
Leasehold
·
Buildings
·
Plant, Machinery and Equipment
·
Furniture, Fixture and Office Equipments
·
Vehicles
·
Intangible Assets
Contingent
Liabilities :
(Rs. In Million)
|
|
As
at 31.03.2007 |
|
(i)
Disputed liabilities in appeal : |
|
|
a. Income Tax (The Income-Tax assessment of the company have been completed up to
Assessment Year 2004-2005. Based on the decisions of the Appellate
authorities and the interpretations of the other relevant provisions, the
Company has been legally advised that the demand is likely to be either
deleted or substantially reduced and accordingly no provision has been made). |
0.570 |
|
b. Sales Tax (No cash outflow is expected in the near future.) |
7.609 |
|
c. Excise Duty (No cash outflow is expected in the near future.) |
1.795 |
|
d. Others (No cash outflow is expected in the near future.) |
2.775 |
|
|
|
|
(ii) Bank Guarantee (Bank guarantees are provided under contractual/legal obligation. No
cash outflow is expected.) |
1.662 |
|
(iii) Guarantee to a bank against Letter of Credit facility to third
party |
6.300 |
|
(iv) Letter of Credit |
|
|
Inland |
0.830 |
|
Foreign (Cash outflow expected on the basis of payment terms mentioned in
Letter of Credit.) |
0.452 |
A portion of the Land at Company’s plant at Marol, Mumbai was revalued
as on 31st March, 1998 by a Valuer appointed for the purpose. The
resultant increase of Rs.239.273 millions to the cost of the said land arising from
the revaluation was credited to Revaluation Reserve. Consequently, the said
land is stated at revalued amount in the Balance Sheet.
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 records 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 records 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.43.13 |
|
UK Pound |
1 |
Rs.85.02 |
|
Euro |
1 |
Rs.67.77 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|