MIRA
INFORM REPORT
|
Report Date : |
11.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BLUE STAR LIMITED |
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Registered Office : |
Kasturi Building,
Mohan T Advani Chowk, Jamshedji Tata Road, Mumbai-400020, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
20.01.1949 |
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Com. Reg. No.: |
11-6870 |
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CIN No.: [Company
Identification No.] |
U28920MH1949PTC006870 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB11714D |
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PAN No.: [Permanent
Account No.] |
AAACB4487D |
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Legal Form : |
A Public Limited Liability
Company. Company’s shares are listed on the stock exchanges |
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Line of Business : |
Manufacturing,
marketing and contracting of centrifugal chillers, reciprocating chillers, vapour
absorption machines, air handling units, variable air volume systems,
prefabricated modular cold rooms, condensers, water coolers, window
air-conditioners, mini split air-conditioners and environmental test
chambers. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 13100000 |
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Status : |
Good |
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Payment Behaviour : |
Regularly Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old,
well established and reputed company and it is one of the largest Central Air
Conditioning and Commercial Refrigeration Companies in India. The company’s
focus is on the corporate and commercial sectors. The company’s business has
been growing extremely well. Trade relations are reported as fair. Payments
are correct and as per commitments. It can be
considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office/ Head Office : |
Kasturi Building,
Mohan T Advani Chowk, Jamshedji Tata Road, Mumbai-400020, Maharashtra |
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Tel. No.: |
91-22-66654000 |
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Fax No.: |
91-22-66654151 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Kasturi Building,
4th Floor, Mohan T. Advani Chowk, Jamshedji Tata Road, Mumbai -
400 020, Maharashtra |
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|
|
Plants: |
Tel. No. 91-22-25346265 Fax No. 91-22-25345525
Bharuch - 392 015, Gujarat Tel. No. 91-2642-246116 Fax No. 91-2642-246026
Dadra & Nagar Haveli Tel. No. 91-260-2648617 / 618 Fax No. 91-260-2648503
Pradesh 173030i
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Regional Office: |
Ø Blue Star House, 9A, Ghatkopar Link Road,
Sakinaka, Mumbai - 400072 Tel No. 91-22-28523600 Fax No. 91-22-28522988 Ø Block 2-A, DLF Corporate Park, DLF Qutab
Enclave, Phase III, Gurgaon - 122 002, Haryana Tel. No. 91-124-26359001-20 Fax No. 91-124-26359220 Ø 7, Hare Street, Kolkata - 700 001, West
Bengal Tel. No. 91-33-22480131 Fax No. 91-33-22481599 Ø 133, Kodambakkam High Road, Chennai - 600 034,
Tamilnadu Tel. No. 91-44-28272056 Fax No. 91-44-28253121 |
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Overseas Office
: |
·
Malaysia ·
U.A.E. ·
U.S.A. |
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Sales &
Services Offices: |
Ø
Sahas, 414/2
Veer Savarkar Marg, Prabhadevi, Mumbai 400 025,
Maharashtra Tel. No 91-22-56664000 Fax. No. 91-22-56664001 Ø
59 Forbes Street,
Mumbai 400 001, Maharashtra Tel: 91-22-22843873 Ø
Unit G-2,
Shalimar Industrial Estate, Dharavi Road, Matunga, Mumbai 400 019,
Maharashtra Tel. No 91-22-24075356/57 Fax. No 91-22-24024644 Ø
Unit 1
Prabhadevi Industrial Estate, Prabhadevi, Mumbai 400025, Maharashtra Tel. No 91-22-24227305 Fax. No 91-22-24376041 Ø
201/A,
Nityanand Complex, 247/A Bund Garden Road, Pune 411011, Maharashtra Tel. No 91-20-26127230 Fax. No 91-20-26121342 Ø
Ramkrishna
Chambers, Productivity Road, Alkapuri, Vadodara, Gujarat Tel. No 91-265-2332022 Fax. No 91-265-2337516 Ø
219 Bajaj
Nagar, 1st Floor, South Ambazari Road, Nagpur 440010, Maharashtra Tel. No. 91-712-2249301 / 2249304 Ø
"Star
Arcade", 2nd Floor, Plot No. 165A & 166, Zone - I, Maharana Pratap
Nagar, Bhopal - 462 011, Madhya Pradesh Tel. No 91-755-25273378 Ø
1st Floor,
Flat No.1, Vaibhav Apartment, Vidyanagar Colony, Miramar, Panjim, Goa 403 001 Tel. No. 91-832-2462756 Ø
E-44/12,
Okhla Industrial Area, Phase II, New Delhi 110 020 Tel. No 91-11-51494000 Fax. No 91-11-51494004 Ø
T.C.IX/1490,
Chandrika, Sasthamangalam, Thiruvananthapuram - 695 010, Kerala Tel. No. 91-471-2720025 Ø
1, Madhya
Marg, Sector 26, Chandigarh - 160 019 Tel. No 91-172-2791101/2792934 Fax. No 91-172-2791101 Ø
B-140,
Nirala Nagar, Lucknow 226 007, Uttar Pradesh Tel. No 91-522-2789172 Ø
A-19, First
Floor, Main Sahakar Path, Nr. Sahakar Bhavan, Jaipur, Rajasthan Tel. No 91-141-5179359/60 Ø
2nd
Floor, New Star Freeze Building, Opp. Kunjalata Bibah Bhawan, G S Road,
Guwahati – 781005, Assam Tel. No. 91-361-2340619 Ø
3A, Satya
Nagar, 2nd Floor, Bhubaneswar 751 007, Orissa Tel. No 91-674-2508239 / 2508270 Ø
5 Bazullah
Road, T Nagar, Chennai 600 017, Tamilnadu Tel. No 91-44-28235531 /
28235534 Fax. No. 91-44-28235667 Ø
11 A
Magarath Road, Bangalore 560 025, Karnataka Tel. No 91-80-25584728 Fax. No. 91-80-25584599 Ø
Meenakshi
Mandiram, XXXIX/4080, M.G. Road, Kochi – 682016, Kerala Tel. No. 91-484-2361282 /
2367843 Ø
207 Sikh
Road, Bantia Estate, Secunderabad 500 003, Andhra Pradesh Tel. No. 91-40-27842057 /
27842058 Fax. No. 91-40-27841445 Ø
47-12-6/7,
2nd Floor, Amaravathi Complex, Dwarakanagar, Visakhapatnam, Andhra Pradesh,
India Tel. No. 91-891-2748433 Fax. No. 91-891-2701041 |
DIRECTORS
|
Name : |
Mr. Ashok M.
Advani |
|
Designation : |
Chairman & Managing Director |
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Age: |
62 years |
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Qualification: |
B. Sc., SB, MBA |
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Experience: |
38 years |
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Date of
Joining: |
01.07.1969 |
|
Previous
Employment: |
RCA INC., USA – Information Systems Projects Specialist – (1968-69) |
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|
Name : |
Mr. Suneel M.
Advani |
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Designation : |
Vice Chairman and Managing Director |
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Age: |
60 years |
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Qualification: |
SB, SB, LL.B., |
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Experience: |
35 years |
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Date of
Joining: |
17.03.1969 |
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|
Name : |
Mr. T. G. S. Babu |
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Designation : |
Deputy Managing Director |
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Age: |
50 years |
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Qualification: |
B. Tech., MBA |
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Experience: |
28 years |
|
Date of
Joining: |
01.11.1995 |
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Previous Employment: |
MRF Limited,
Chennai, Tamilnadu – General Manager (1991-95) |
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|
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|
Name : |
Mr. Pradeep
Mallick |
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Designation : |
Director |
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|
Name : |
Mr. Gurdeep Singh |
|
Designation : |
Director |
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|
Name : |
Mr. Suresh N.
Talwar |
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Designation : |
Executive Director |
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|
Name : |
Mr. Nawshir H.
Mirzaq |
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Designation : |
Director |
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Name : |
Mr. Satish Jamdar |
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Designation : |
Deputy Managing Director |
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|
Name : |
Mr. Shailesh
Haribhakti |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K. P. T.
Kutty |
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Designation : |
Company
Secretary |
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|
Name : |
Mr. Arun Khorana |
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Designation : |
Vice President – Electronic Division |
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Name : |
Mr. Ranajit Majumadar |
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Designation : |
Vice President –
Human Resources & Quality |
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Name : |
Mr. Avinash
Pandit |
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Designation : |
Vice President – Packaged Airconditioning Division |
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|
Name : |
Mr. H. Rajaram |
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Designation : |
Vice President – Finance |
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Name : |
Mr. S. Sankaran |
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Designation : |
Vice President – Airconditioning Project Division |
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Name : |
Mr. B.
Thiagarajan |
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Designation : |
Vice President -
Corporate Affairs and Communications |
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|
Name : |
Mr. R. Arvindan |
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Designation : |
Vice President
– Packaged Air conditioning Division |
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|
Name : |
Mr. J. M.
Bhambure |
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Designation : |
Vice President
– Dadra Plant |
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|
Name : |
Mr. Michael
Fernandes |
|
Designation : |
Vice President
– Human Resources and Quality |
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|
Name : |
Mr. A. Rakesh Rao |
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Designation : |
Vice President
- Air conditioning and
Project Division |
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|
|
|
Name : |
Mr. P. Venkat Rao |
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Designation : |
Vice President 0 Room
Air conditioner and Refrigeration Products Division |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
Category
|
No. of shares
|
% of shareholding
|
|
|
|
|
promoters'
holdings
|
|
|
|
Individuals |
24487895 |
27.23 |
|
Bodies Corporate |
7932312 |
8.82 |
|
Trust |
3148835 |
3.50 |
|
Total |
35569042 |
39.55 |
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|
|
|
Foreign
|
|
|
|
Individuals (NRIs/Foreign) |
543075 |
0.60 |
|
Total |
543075 |
0.60 |
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|
|
|
INSTITUTIONAL
INVESTORS |
|
|
|
|
|
|
|
Mutual Funds And
UTI |
6787676 |
7.55 |
|
Banks, Financials
Institutions, Insurance |
8430 |
0.01 |
|
Insurance
Companies |
2128778 |
2.37 |
|
FIIS |
2596841 |
2.89 |
|
Foreign Financial
Institutions |
2250 |
0.00 |
|
Foreign Mutual
Fund |
3275518 |
3.64 |
|
Total |
14799493 |
16.46 |
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|
|
|
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NON-INSTITUTIONS |
|
|
|
Bodies Corporate |
5890093 |
6.55 |
|
Individuals |
|
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|
Individuals -i. Individual shareholders holding nominal
share capital up to Rs.0.100 Million |
22086966 |
24.56 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs.0.100
Million |
9337104 |
10.38 |
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|
|
|
Any Other (specify) |
|
|
|
Clearing member |
78276 |
0.09 |
|
Foreign Company |
375 |
0.00 |
|
Market Maker |
2882 |
0.00 |
|
Foreign Nationals |
21750 |
0.02 |
|
NRI (Repatriate) |
715300 |
0.80 |
|
NRI (Non-Repatriate) |
891749 |
0.99 |
|
Total |
39024495 |
43.39 |
|
|
|
|
|
Total |
89936105 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing,
marketing and contracting of centrifugal chillers, reciprocating chillers, vapour
absorption machines, air handling units, variable air volume systems,
prefabricated modular cold rooms, condensers, water coolers, window
air-conditioners, mini split air-conditioners and environmental test
chambers. |
PRODUCTION STATUS (As On 31.03.2008)
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Refrigeration
& Airconditioning Equipment |
|
Nos. |
476250 |
312514 |
|
Packaged Air
Conditioning |
|
Nos. |
112500 |
28286 |
|
Industrial packaged
chillers |
|
Nos. |
1450 |
1454 |
|
Shell & tube
condenses & coolers |
|
Nos. |
000 |
741 |
|
Air handling
units |
|
Nos. |
15500 |
4852 |
|
Finned condenses
& evaporators |
|
Nos. |
10780 |
8651 |
GENERAL
INFORMATION
|
Customers : |
Ø
The Presidential
Palaces Complex, Damascus, Syria Ø
University
of Baghdad Ø
State Bank
Headquarters, Mauritius Ø
Taj Lanka
Hotels, Colombo Ø
Kompleks
Dami Ø
Kuala Lumpur Ø
US
Geological Survey Mission, Jeddah Ø
Grand Hyatt
Hotel Ø
SHAR Space
Centre Ø
Infosys Ø
Wipro
Limited Ø
Satyam Ø
Sterlite
Industries Ø
Sri Sailam
Left Bank, Andhra Pradesh Ø
Moser Baer
India Limited, Noida, Uttar Pradesh Ø
DLF Square Ø
Palm Court Ø
Gateway
Tower Ø
Nestle
House, Gurgaon, Haryana Ø
Imax Dome
Theatre, Mumbai Ø
UTI Bank,
Chennai, Tamilnadu Ø
Sterling Towers,
Chennai, Tamilnadu Ø
Ebony
Showroom, New Delhi Ø
Amul Ø
Domino's Ø
Dinshaw Ø
Hindustan
Lever Limited Ø
Johnson
& Johnson Ø
Kodak Ø
Le Meridien Ø
McDonalds Ø
Oberoi Hotel |
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Bankers : |
Ø The Hongkong
& Shanghai Banking Corporation Ltd Ø State Bank of
India Ø Oriental Bank of
Commerce Ø ABN - AMRO Bank Ø BNP Paribas |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
|
|
Name : |
K S Aiyar &
Company Chartered
Accountant |
|
|
|
|
Branch Auditor |
Ø R Venkatarama
Aiyar & Company, Kolkata, Chartered Accountants Ø Sharp and Tanan,
Chennai, Chartered Accountants Ø Fraser &
Ross, Chennai, Chartered Accountants Ø
Mohinder Puri & Company, New Delhi, Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
Ø
Yokogawa
Blue Star Limited 40/4, Lavalle Road, Bangalore 560 001, Karnataka Tel. No. : 91-80-2271513 Fax No. : 91-80-2274270 Ø
Arab
Malaysian Blue Star Sdn. Bhd. 18th Floor, Bangunan AMDB, No.1, Jalan Lumut, Kompleks Damai, Tel No. : 03-4418261 Fax No. : 03-4419520 E-Mail: ambsklm@po.jaring.my Ø
Rolastar
Private Limited, India Ø
Ravistar
Private Limited, India Ø
Stork
Comprimo BV, Netherlands Ø
Blue Star
Infotech Limited Ø
Easy Flow
Air Products Private Limited Ø
Synergy
Realtors and Services Private Limited Ø
Admo Holding
Private Limited Ø
Sunag
Investments Private Limited Ø
Sunashad
Investments Private Limited Ø
Sunash
Investments Ø
Mohan T. Advani
and Company (AOP) Ø
Mohan T.
Advani Finance (Private) Limited Ø
J. T. Advani
(Finance) Private Limited Ø
Ashok Sunil
& Company Private Limited Ø
Aerm
Compressors Private Limited, India Ø
Climatrol,
Italy Ø
Heat Craft,
USA Ø
Mitsubishi
Heavy Industries, Japan Ø
Rheem
Manufacturing Company, USA Ø
Tenney Inc,
USA Ø York International, USA Ø
USIN
International Inc., USA Ø Blue Star Infotech (UK) Limited, UK Ø Blue Star Quarter – [LLC] |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000 |
7.8% Cumulative Preference
shares |
Rs.100/- each |
Rs.1.000 Millions |
|
148700000 |
Equity shares |
Rs.2/- each |
Rs.297.400 Millions |
|
16000 |
Unclassified shares |
Rs.100/- each |
Rs.1.600 Millions |
|
|
Total |
|
Rs.300.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4678203 |
Equity Shares |
Rs.10/- each |
Rs.46.782 Millions |
|
929 |
Shares allotted as fully paid up |
Rs.10/- each |
Rs.0.009 Millions |
|
13305268 |
Bonus Shares by Capitalisation of Reserves and Share Premium |
Rs.10/- each |
Rs.133.053 Millions |
|
2821 |
7.8% Cumulative Preference Shares |
Rs.10/- each |
Rs.0.028 Millions |
|
|
Total
|
|
Rs.179.872 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
179.872 |
179.872 |
179.872 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2455.590 |
1949.792 |
1547.234 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2635.462 |
2129.664 |
1727.106 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
362.920 |
390.496 |
405.748 |
|
|
2] Unsecured Loans |
2.456 |
500.000 |
352.965 |
|
|
TOTAL BORROWING |
365.376 |
890.496 |
758.713 |
|
|
DEFERRED TAX LIABILITIES |
35.878 |
65.144 |
90.531 |
|
|
|
|
|
|
|
|
TOTAL |
3036.716 |
3085.304 |
2576.350 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1377.328 |
1140.769 |
967.741 |
|
|
Capital work-in-progress |
180.930 |
24.129 |
110.891 |
|
|
|
|
|
|
|
|
INVESTMENT |
45.679 |
52.988 |
51.777 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2734.915
|
1880.803
|
1498.399 |
|
|
Sundry Debtors |
4837.398
|
3506.838
|
2388.451 |
|
|
Cash & Bank Balances |
26.724
|
46.073
|
23.680 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
2574.883
|
1690.573
|
906.474 |
|
Total
Current Assets |
10173.920
|
7124.287
|
4817.004 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
6346.666
|
4291.051
|
3123.242 |
|
|
Provisions |
2408.654
|
988.314
|
280.435 |
|
Total
Current Liabilities |
8755.320
|
5279.365
|
3403.677
|
|
|
Net Current Assets |
1418.600
|
1844.923
|
1413.327
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
14.179 |
22.495 |
32.614 |
|
|
|
|
|
|
|
|
TOTAL |
3036.716 |
3085.304 |
2576.350 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
2221.867 |
15945.824 |
11706.743 |
|
|
Other Income |
485.065 |
128.245 |
79.487 |
|
|
Total Income |
22700.932 |
16074.069 |
11786.230 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2420.197 |
925.972 |
690.947 |
|
|
Provision for Taxation |
679.250 |
214.162 |
201.903 |
|
|
Profit/(Loss) After Tax |
1740.947 |
711.810 |
489.044 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
1651.593 |
1138.439 |
824.732 |
|
|
|
|
|
|
|
|
Total Imports |
3002.463 |
2061.128 |
1187.971 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Sales, Work Bills & Services |
16909.287 |
12426.910 |
9062.539 |
|
|
Employee Remuneration |
1544.064 |
1228.612 |
882.750 |
|
|
Operating and General Expenses |
1532.073 |
1188.070 |
933.540 |
|
|
Depreciation |
219.662 |
209.012 |
159.256 |
|
|
Interest |
75.649 |
95.493 |
57.198 |
|
Total Expenditure |
20280.735 |
15148.097 |
11095.283 |
|
QUARTERLY /
SUMMARISED RESULTS
|
Year |
|
30.06.2008 |
31.09.2008 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
6308.900 |
6465.400 |
|
Other Income |
|
16.500 |
11.600 |
|
Total Income |
|
6325.400 |
6477.000 |
|
Total Expenditure |
|
5738.500 |
5775.800 |
|
Operating Profit |
|
586.900 |
701.200 |
|
Interest |
|
20.000 |
43.600 |
|
Gross Profit |
|
566.900 |
657.600 |
|
Depreciation |
|
56.600 |
61.300 |
|
Tax |
|
146.200 |
146.800 |
|
Reported PAT |
|
364.100 |
449.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
7.66
|
0.00 |
4.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
108.92
|
5.80 |
5.90 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.95
|
12.74 |
11.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.91
|
0.43 |
0.40 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.46
|
2.89 |
2.41 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.16
|
1.34 |
1.41 |
LOCAL AGENCY
FURTHER INFORMATION
HIGHLIGHTS OF
2007-08
- Total Income climbed to Rs.22700.900 Millions, recording a growth of 41% over the previous year.
- Profit Before Tax increased substantially to Rs.2420.200 Millions from Rs.926.000 Millions, while Profit After Tax grew by 145%
- to Rs.1741.000 Millions
- Earnings per share were Rs.19.36 (face value of Rs.2.00) compared to Rs.7.91 in the previous year.
- A dividend of Rs.7.00 per share has been recommended.
- Borrowings reduced to Rs.365.400
Millions at year-end from Rs.890.500 Millions in the previous year.
OPERATING
PERFORMANCE
The Company recorded another year of excellent growth with
all the business segments performing well. In Central and Packaged Air
conditioning Systems, which is the major business contributing 70% of the
operating revenue, income grew by 38% and profits by 84%. Cooling Products
provided an increase of 43% in revenue and 128% in profits. Professional
Electronics and Industrial Systems revenue recorded a growth of 38% while
profits were up by 50%.All four manufacturing units performed well during the
year. The fifth plant being set up in Wada, Maharashtra completed its first
phase of construction and commenced commercial production in the last quarter
of the financial year.
FINANCIAL
PERFORMANCE
With good all round sales performance, Total Income grew
by 41% to Rs.22700.900 Millions. This includes Other Income of Rs.353.200 Millions
from sale of 60% of the equity shares held by the Company in Rolastar Private
Limited. A tight focus on costs and operating expenses along with effective
financial control resulted in a significant increase in profitability. Profit
Before Tax climbed by 161% to Rs.2420.200 Millions while Profit After Tax grew
from Rs.711.800 Millions to Rs.1741.000 Millions. Good working capital
management and higher operating profits generated a healthy cash flow. Cash
flow from operating activities more than doubled to Rs.1337.800 Millions.
Borrowings came down from Rs.890.500 Millions to Rs.365.400 Millions inspite of
substantial capital expenditure and cost of acquisition of a new business.
Debt/Equity was a comfortable 0.14at year end, even lower than 0.42 in the
previous year.
EXPORT &
FOREIGN EXCHANGE EARNINGS
Income from product exports increased by 63% to
Rs.1436.800 Millions. Project exports and commission income decreased modestly.
Total foreign exchange earnings increased by 45% to Rs.1651.600 Millions. Total
foreign exchange outflow during the year was Rs.3038.000 Millions.
ELECTRICAL
CONTRACTING BUSINESS
The Company recognized the growing strategic opportunity
to provide composite solutions in electro mechanical
Projects. In order to build competencies in electrical
contracting, the Company acquired the business of Naseer Electricals Private
Limited, a leading electrical contracting company in the South. The process of
assimilating the business and extending the electrical contracting activities
to other regions began by the year end.
MANAGEMENT DISCUSSION
AND ANALYSIS:
INTRODUCTION:
Blue Star is India's leading central airconditioning and commercial
refrigeration company, fulfilling the requirements of a large number of
corporate and commercial customers. With 65 years of experience in providing
expert cooling solutions, the Company has been associated with a large number
of prestigious projects and organizations in the country and enjoys a preferred
partner status in most of the high growth segments.
A significant area of business for Blue Star is distribution and maintenance of
imported professional electronics and industrial systems. These include turnkey
engineered solutions in the areas of manufacturing, telecom, healthcare,
defence, pharmaceuticals, banking and R&D.
Blue Star's business model of providing end-to-end solutions as a manufacturer,
contractor and after-sales service provider coupled with differentiated
products and customized solutions have contributed to sustained growth and
leadership.
The Company continues to perform well in all its lines of business, despite
stiff global competition.
LINES OF BUSINESS:
Blue Star primarily focuses on corporate, commercial and institutional customers.
These include institutional, industrial and government organizations as well as
commercial entities such as builders, showrooms, restaurants, banks, hotels,
multiplexes and hospitals. The lines of business of Blue Star can be segmented
as follows:
CENTRAL AND PACKAGED AIRCONDITIONING
SYSTEMS:
This business segment covers the design, manufacturing, installation,
commissioning and maintenance of central airconditioning plants and ducted
systems. It also includes after-sales service as a business, with several value
added services in the areas of upgrades and enhancements, air management, water
management, energy management, integrated engineering facilities management and
LEED certification consultancy for Green Buildings. The Company's recent foray
into the electrical contracting business through the acquisition of the
businesses of Naseer Electricals Private Limited also provides a new
opportunity to cross-sell electrical services to its existing HVAC customers.
COOLING PRODUCTS:
Blue Star offers a wide range of contemporary window and split airconditioners,
specifically targeted at corporate and commercial establishments. It also
manufactures and markets a comprehensive range of commercial refrigeration
products and cold chain equipment including water coolers, bottled water
dispensers, deep freezers, milk coolers, bottle coolers, ice cube machines,
customized cold storages, bulk cold storages and supermarket refrigeration
equipment.
PROFESSIONAL ELECTRONICS AND INDUSTRIAL
SYSTEMS:
For over five decades, the Electronics Division has been the exclusive
distributor in India for many internationally renowned manufacturers of hi-tech
professional electronic equipment and services, as well as industrial products
and systems. The Company has established profitable businesses for itself in
most of the specialized markets it operates in, including analytical
instruments, medical electronics, data communication products, material
testing, and test and measuring instruments.
FINANCIAL HIGHLIGHTS:
2007-08 was, by far, the best year in the Company's history. The construction
boom and favourable economic environment coupled with the Company's strong
credentials significantly contributed to its topline growth. Scale, lower cost
of sales and well controlled expenses resulted in exceptional margin
improvement. Total Income for the year grew by 41% to reach Rs.22700.900
Millions. Net Profit grew by 145% to Rs.1740.900 Millions, while Earnings Per
Share increased to Rs.19.36 from Rs.7.91 (face value of Rs.2.00).
Operating profit (PBDIT excluding Other Income) for the year at Rs.2344.900
Millions doubled over the previous year. Operating Margin increased
significantly to 10.5% from 7.3% in FY07. While Return on Capital Employed
(ROCE) grew from 32.1% to 81.4%, Return on Shareholders' Funds improved to
66.1% from last year's figure of 33.4%.
INDUSTRY STRUCTURE AND DEVELOPMENTS:
AIRCONDITIONING:
In 2007-08, the estimated total market size for airconditioning in India
was around Rs.90000.000 Millions. Of this, the market for central
airconditioning, including central plants and ducted systems, was about
Rs.50000.000 Millions, while the market for window and split airconditioners
comprised the balance Rs.40000.000 Millions. The commercial airconditioning
segment catering to corporate and commercial customers amounted to around
Rs.70000.000 Millions.
The year 2007-08 saw big growth in segments such as infrastructure, power,
healthcare, telecom and hospitality. In the IT/ITES sector, there was a
slowdown amongst smaller players who were adversely affected by the
depreciating dollar. However, large IT/ITES companies continued with their
aggressive expansion plans. Although the retail sector witnessed some setbacks,
especially in the food retail segment, there was significant growth in Tier 2
cities, offering new opportunities.
Based on plans announced by several players, the cumulative non-residential air
conditioning opportunity over the next 5 years is estimated to be around
Rs.380000.000 Millions.
With investments continuing in infrastructure and a buoyant economic
environment, the commercial airconditioning industry is expected to grow
significantly over the next few years.
COMMERCIAL REFRIGERATION:
The market for commercial refrigeration equipment and systems was estimated at
around Rs.18000.000 Millions. The commercial refrigeration segment includes a
wide range of products such as cold storages, supermarket refrigeration
equipment, water coolers, bottled water dispensers, deep freezers, milk
coolers, bottle coolers and ice cubers.
India has great potential for the production and distribution of perishable
agricultural commodities including fruits and vegetables. This potential needs
a modern cold chain infrastructure including conventional, controlled and
modified atmosphere cold storages, to be effectively harnessed. The
distribution system for horticulture produce in India is also subject to
several lacunae due to the presence of a large number of intermediaries between
the farmer and the consumer. Further, lack of adequate storage facilities and
refrigerated transport equipment add to the problem causing huge wastage of
these perishables. The cold chain infrastructure will help to correct the
'supply side constraint' throughout the year which, in turn, will bring down
food prices to the consumer.
Most of the cold storage units in India do not have facilities to store a wide range of products across varied temperatures. The aggregate cost of providing a nationwide cold chain infrastructure considering present capacities and benchmarking with the current level of production is estimated to be more than Rs.150000.000 Millions. This includes facilities such as pre cooling, pack houses, ripening chambers, controlled atmosphere storages, reefer vans, refrigerated containers, retail cabinets and mobile refrigerated units. The Government of India has been implementing schemes for construction, modernisation and expansion of cold storages for horticulture produce under National Horticulture Mission towards post harvest management since 2005-06. Further, Agricultural & Processed Food Products Export Development Authority (APEDA) under Ministry of Commerce is implementing a scheme for infrastructure development with an allocation for setting up specialized storage facilities including high humidity cold storages, freezers and controlled atmosphere storages with financial assistance to various entrepreneurs. Recently, the Government has approved a proposal to float 'Special Purpose Vehicles' (SPV) under the new mega food park scheme to build a cold chain infrastructure in rural India. These Government initiatives coupled with private investments from retail, logistics and large agricultural traders would progressively open up a great opportunity to participate in the growing cold chain infrastructure in India.
Fixed Assets:
v Land- Freehold
v Land Leasehold
v Building Sheds and
Road
v Plant and Machinery
v Furniture, Fittings
& Equipments
v Vehicles
v Computers
v
Intangible Assets- BAAN SYSTEM
As Per Websites
COMPANY PROFILE
Subject is India's largest central air conditioning company
with an annual turnover of Rs.22700.000 Millions, a network of 24 offices, 5
modern manufacturing facilities, 650 dealers and around 2500 employees.
It fulfils the air
conditioning needs of a large number of corporate and commercial customers and
has also established leadership in the field of commercial refrigeration
equipment ranging from water coolers to cold storages. Blue Star's other
businesses include marketing and maintenance of hi-tech professional electronic
and industrial products.
Subject has business
alliances with world renowned technology leaders such as Rheem Mfg Co, USA;
Hitachi, Japan; Eaton - Williams, UK; Thales e-Security Ltd., UK; Jeol, Japan; ISA,
Italy and many others, to offer superior products and solutions to customers.
The Company has
manufacturing facilities at Thane, Dadra, Bharuch and Himachal which use
state-of-the-art manufacturing equipment to ensure that the products have
consistent quality and reliability.
Subject primarily focuses
on the corporate and commercial markets. These include institutional,
industrial and government organizations as well as commercial establishments
such as showrooms, restaurants, banks, hospitals, theatres, shopping malls and
boutiques. In accordance with the nature of products and markets, business
drivers, and competitive positioning, the lines of business of Blue Star can be
segmented as follows:
Central
Airconditioning Systems
This involves design, engineering,
manufacturing, installation, commissioning and support of large central air
conditioning plants, packaged air conditioners and ducted split air
conditioners. This line of business also promotes after-sales service as a
business, by offering several value added services in the areas of upgrades and
enhancements, air management, water management and energy management.
Cooling Products
Subject offers a wide range
of contemporary window and split air conditioners. The Company also
manufactures and markets a comprehensive range of commercial refrigeration
products and services that cater to the industrial, commercial and hospitality
sectors. These include water coolers, bottled water dispensers, deep freezers,
cold storages, bottle coolers, ice cube machines and supermarket refrigeration
products.
Professional
Electronics and Industrial Systems
For over five decades, the
Electronics Division has been the exclusive distributor in India for many
internationally renowned manufacturers of hi-tech professional electronic
equipment and services, as well as industrial products and systems. The Company
has carved out profitable niches for itself in most of the specialized markets
it operates in, such as analytical instruments, medical electronics, data
communication products, material testing, and test and measuring instruments.
Year Event
1943 Mohan
T Advani establishes Blue Star Engineering Company as a proprietary firm
1946 Blue
Star secures Melchior Armstrong Dessau agency
1947 Worthington selects Blue Star as
Indian Partner. Manufacturing of ice candy machines an bottle coolers begins. Central
airconditioning system design and execution begins
1948 Manufacture
of water coolers commences
1949 Proprietorship
converted to Private Limited Companies
1954 Blue
Star selected as distributor for Honeywell
1955 GDR
Testing machines distributorship begins
1957 Perkin-Elmer tie-up marks the start
of the electronics business. GDR business machines agency commences
1960 Total
Income crosses the Rs.10 Millions mark
1962 GDR
Machine Tools distributorship begins
1964 Total
employment crosses 1,000
1965 Techniglas
Pvt Ltd set up to manufacture insulation material
1969 Factory
moves from Colaba in Mumbai to Thane
1970 Hewlett-
Packard distributorship commences
1972 First skyscrapers of Mumbai – Air
India Building, Express Towers and Oberoi Hotel set-up – all airconditioned by
Blue Star
1972 Total
Income crosses Rs.100 Millions. Employment crosses 2,000
1974 Water
Cooler manufacturing license granted to Yusuf Alghanim, Kuwait
1977 Middle
East thrust begins. Joint Venture (JV) with Al Shirawi in Dubai
1977 Hitachi
Medical Equipment distributorship begins
1978 Industrial
Division commences activity
1980 Bharuch
Factory set up
1980-86 Major
AC and R projects executed in the Middle East
1983 International
Software Division inaugurated in Seepz
1984 York
technology collaboration begins
1985 Manufacture
of centrifugal packaged chillers commences at Thane Plant
1986 Total
Income crosses Rs.1000 Millions
1987 Yokogawa
Blue Star JV formed
1987 Gandhinagar
factory set up for EPABX systems
1988 Blue
Star becomes India’s largest central airconditioning company
1988 Manufacturing
collaboration with Mitsubishi
1988 Assembly
of personal computers under the brand name ‘Quantum’ begins
1989 JV
with Hewlett-Packard and Motorola
1990 Gandhinagar
factory closes
1992 Total
Income crosses Rs.2000 Millions
1992 Blue
Star exits from Motorola JV
1993 Formation
of Arab Malaysian Blue Star JV in Malaysia
1995 Blue
Star exits from HP India JV
1997 Dadra
Plant inaugurated
1998 Major
thrust on dealerisation and brand building begins
1999 Blue
Star exits from Industrial Projects business
2000 International
Software business spun off to form Blue Star Infotech, listed on stock
exchanges
2001 Total
Income crosses 5000 Millions. Export of airconditioning products begins
2003 Blue
Star exits Yokogawa JV
2005 Blue
Star sets up new factory at Kala Amb in Himachal Pradesh
2006 Total
Income crosses the Rs.10000 Millions mark
2006 Blue
Star opts for a 5 for 1 stock split
PRESS RELEASES
Subject
Q2 Total Income grows 18% to Rs.6470.000 Millions
Place: Mumbai
Date: October 27, 2008
Financial Performance
for the quarter ended September 30, 2008 (Q2FY09)
- Central airconditioning and commercial refrigeration major subject reported Total Income of Rs.6465.800 Millions for the quarter ended September 30, 2008, representing 18% growth over the same period in the previous year.
- Net Profit at Rs.449.500 Millions was marginally lower compared to Rs.459.700 Millions in Q2FY08. The economic slowdown coupled with an increase in cost of raw material and higher interest cost adversely affected profit margin.
- Carry Forward Order Book as on September 30, 2008 increased to Rs.15550.000 Millions compared to Rs.10130.000 Millions as at September 30, 2007, registering a growth of 51%.
Financial Performance
for the half-year ended September 30, 2008 (H1FY09)
- For the half-year ended September 30, 2008, the Company reported Total Income of Rs.12776.100 Millions, representing 26% growth over the same period in the previous year.
- Net Profit at Rs.813.600 Millions increased by 19% compared to Rs.682.900 Millions in H1FY08.
Outlook
Ashok M Advani, Chairman and Managing Director says, "The gloomy economic outlook and liquidity crunch have affected most companies across the globe. Considering the volatility of the market place, we have been selectively pursuing segments which offer profitable growth opportunities. In addition, we continue to focus on cost control measures and on managing working capital efficiently. Over its 65 years of existence, Blue Star has time and again demonstrated its ability to rapidly adapt itself to the external environment. I am confident that this time, too, we will rise to the occasion."
For additional information, please contact: B Thiagarajan, Executive Vice President, subject, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai - 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.
Subject
in Forbes’ Best under a Billion list
Date: September 30, 2008
subject, India's leading central airconditioning and commercial refrigeration company, has been named in the latest '200 Best under a Billion' list for the Asia Pacific region by US magazine, Forbes.
The annual 'Best under a Billion' list picks the best 200 small and medium
sized companies from 24,155 listed firms with sales of less than USD 1 billion
in the Asia Pacific region. The companies are chosen based on their
record of consistent growth and profitability.
The list appeared in the September 29 issue of Forbes Asia. Only 22 Indian
companies found a place in the list of 200 and Blue Star is one of them.
Subject has posted consistent growth in sales and profits over the last several
years. For the year ended March 31, 2008, its Total Income increased by 41% to
Rs.22700.000 Millions and Profit after Tax by 145% to Rs.1740.900 Millions.
Commenting on the achievement, B Thiagarajan, Executive Vice President,
subject. said, "We are pleased about the fact that Forbes Asia has picked
subject as one of the 200 outstanding companies in the Asia Pacific region. The
Company’s unwavering focus on profitable growth has clearly produced good
results. This achievement is a result of sound strategy implemented with great
commitment and competence by the entire Blue Star team."
Outlook
Ashok M Advani, Chairman and Managing Director says “2007-08 was, by far, the best year in Blue Star’s 65-year old history. Record top-line growth, lower costs and tight operational control have led to this exceptional financial performance. We have achieved steadily improving results over a number of years in a competitive market and this gives me confidence that Blue Star will sustain its momentum of high growth and profitability in the current year.”
For additional information, please contact: B Thiagarajan, Executive Vice President, subject, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.
Subject
Q1 Total Income grows 37% Net Profit up by 63%.
Place: Mumbai
Date: July 28, 2008
Financial Performance
for Q1FY09
- Central airconditioning and commercial refrigeration major subject reported Total Income of Rs.6325.400 Millions for the quarter ended June 30, 2008, representing 37% growth over the same period in the previous year. Net Sales for the year at Rs.6308.900 Millions were up by 36% over Q1FY08.
- Net Profit at Rs.364.100 Millions registered growth of 63% compared to Rs.223.200 Millions in Q1FY08.
- Earnings per share for the quarter (Face value of Rs.2.00) stood at Rs.4.05 vis-à-vis Rs.2.48 in the corresponding quarter of the previous year
- Carry Forward Order Book as on June 30, 2008 increased to Rs.14100.000 Millions compared to Rs. 9840.000 Millions as at June 30, 2007.
Segment-wise
performance for Q1FY09
Subject performed impressively in all 3 lines of business.
The central airconditioning and electrical contracting business, collectively called Electro Mechanical Projects and Packaged Airconditioning Systems grew by a healthy 37% during the quarter. Segment results increased by 53% in the quarter compared to the corresponding quarter in the previous year. Apart from infrastructure-led central airconditioning projects, telecom shelter airconditioning products and variable refrigerant flow systems also contributed to growth.
The Cooling Products segment also registered good growth of 36% driven by sales of the newly launched star-rated split airconditioners as well as commercial refrigeration products. Segment results grew by 68% during the quarter.
Professional Electronics and Industrial Systems continued to perform well owing to its innovative business model of a system integrator and value added re-seller. Revenues grew by 30% during the quarter, with segment results registering growth of 8%.
Outlook
Ashok M Advani, Chairman and Managing Director says “2007-08 was, by far, the best year in Blue Star’s 65-year old history. Record top-line growth, lower costs and tight operational control have led to this exceptional financial performance. We have achieved steadily improving results over a number of years in a competitive market and this gives me confidence that Blue Star will sustain its momentum of high growth and profitability in the current year.”
For additional information, please contact: B Thiagarajan, Executive Vice President, Subject, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.
Subject
Total Income grows 41% to Rs.22700.000 Millions in FY08.
Place: Mumbai
Date: May 12, 2008
Subject Total Income
grows 41% to Rs.22700.000 Millions in FY08. Net Profit surges by 145%. Dividend
of Rs 7 per share declared.
Financial Performance
for 2007-08
- Central airconditioning and commercial refrigeration major subject Total Income of Rs.22700.900 Millions for the year ended March 31, 2008, representing 41% growth over previous year. Net Sales for the year at Rs.22330.400 Millions were up by 39% over FY07.
- Operating profit (PBIDT excluding Other Income) for the year doubled to Rs.2344.900 Millions.
- Net Profit at Rs.1740.900 Millions showed outstanding growth of 145% compared to Rs.711.800 Millions in FY07.
- Earnings per share for FY08 (Face value of Rs.2.00) stood at Rs.19.36 vis-à-vis Rs.7.91 in the previous year
- Carry Forward Order Book as on March 31, 2008 climbed to Rs.11350.000 Millions compared to the order book of Rs.7550.000 Millions as at March 31, 2007.
Dividend
The Board of Directors has recommended a dividend of Rs.7.00 per equity share (350%) including a Special Dividend of Re 1.00 per share compared to Rs.3.00 paid last year.
Segment-wise
performance for 2007-08
Subject performed impressively in all 3 lines of business.
- The large central airconditioning and packaged airconditioners business accounting for 70% of total revenues grew by a healthy 38% during FY08. Segment results surged by 84% in the year compared to the previous year. Apart from infrastructure led central airconditioning projects, telecom shelter airconditioning products and newly introduced variable refrigerant flow systems also contributed to growth.
- The cooling products segment also registered excellent growth of 43% in the year driven by exceptional sales of split airconditioners as well as commercial refrigeration products. Segment results jumped by 128% in the year.
- The professional electronics and industrial systems business continued to contribute significantly to the profitability of the Company. The business grew by a solid 38% during FY08, with segment results registering growth of 50%.
Performance for
Q4FY08
- Total income for the quarter ended March 31, 2008 at Rs.7441.900 Millions, grew by 36% over the corresponding quarter in the previous year. Net Sales for the quarter at Rs.7081.400 Millions, climbed by 30% over the corresponding quarter of the previous year.
- Net Profit for Q4FY08 reached Rs.703.600 Millions, an increase of 107% over Q4FY07.
- During Q4, the Company acquired the electrical contracting business of Naseer Electricals Private Limited on the operating performance during the quarter was not material.
Outlook
Ashok M Advani, Chairman and Managing Director says “2007-08 was, by far, the best year in Blue Star’s 65-year old history. Record top-line growth, lower costs and tight operational control have led to this exceptional financial performance. We have achieved steadily improving results over a number of years in a competitive market and this gives me confidence that Blue Star will sustain its momentum of high growth and profitability in the current year.”
For additional information, please contact: B Thiagarajan, Executive Vice President, Blue Star Limited, Bandbox House, 254D, Dr Annie Besant Road, Worli, Mumbai – 400 030 email: bthiagarajan@bluestarindia.com Telephone: 66544000.
Subject
launches wide range of Star-rated Split Air-conditioners
Date: March, 2008
Air-conditioning and commercial refrigeration major, Subject has launched a new range of Energy labelled (star-rated) wall mounted split air-conditioners. These air-conditioners will be available in a wide range of 2, 3 & 4 Star ratings and in capacities of 1.0, 1.5 and 2.0 TR.
Under a new Central Government legislation expected to become operational from
October 2008, it will become mandatory to energy label window and split
air-conditioners up to and including 3 Ton capacity. Under this law,
air-conditioners need to be compulsorily tested at authorized laboratories and
their energy efficiency revealed through clearly understandable energy labels,
to be fixed on all ACs. 5-star would mean the highest efficiency and 1-star
would mean the lowest efficiency. The higher the number of stars, the higher
would be the initial price, but there would be dramatic power savings. For
example, a 2-star Split AC will cost 10% more than a non-labelled machine, but
it will save enough power whereby a customer recovers the higher price in 12
months.
Since Subject has been promoting the concept of energy efficiency for many
years it has decided to sell only star labelled Split air-conditioners this
summer on a voluntary basis even though the law has not come into force.
Historically subject has been focussed on institutional customers. However with
the commissioning of its new plant at Himachal Pradesh a couple of years ago,
taking advantage of the higher manufacturing capacity the company has been
making steady progress in the residential segment also. It has 300 exclusive
dealers and another 300 non-exclusive dealers for selling Room
air-conditioners. According to Mr T Gouri Sankara Babu, Deputy Managing
Director, “over the last 3 years Blue Star’s room AC business has been
consistently growing at a CAGR of 50% as against the industry growth of 25% -
30%. We have been able to do this since we have differentiated ourselves from
the others through better engineered and more energy efficient air-conditioners
sold and serviced through technically competent channel partners. We believe
that the energy labelling (star-rating) of room air-conditioners will clearly
strengthen Blue Star’s position in the room air-conditioner market”.
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.47.59 |
|
UK Pound |
1 |
Rs.74.55 |
|
Euro |
1 |
Rs.60.57 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
56 |
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 |
|