MIRA
INFORM REPORT
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Report Date : |
07.08.2010 |
IDENTIFICATION DETAILS
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Name : |
P I INDUSTRIES LIMITED |
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Registered Office : |
Post Box No. 20, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
31.12.1946 |
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Com. Reg. No.: |
17-469 |
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CIN No.: [Company
Identification No.] |
L24211RJ1946PLC000469 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHP01697D |
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Legal Form : |
Public limited
liability company. The company's
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and
Marketing of Pesticides, Industrial Chemicals and Polymers, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
A (64) |
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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 6100000 |
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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 and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are
strong and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office / Factory 1 : |
Post Box No. 20, |
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Tel. No.: |
91-294-6454304/305 |
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Fax No.: |
91-294-2491946 |
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E-Mail : |
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Website : |
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Corporate Office : |
4th
Floor, Tower – A, |
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Tel. No.: |
91-124-4159000 /
6790000 |
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Fax No.: |
91-124-4081247 |
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Factory 2 : |
Lane IV, |
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Factory 3 : |
Plot No. 237, GIDC, Panoli, District Bharuch- 313 001, |
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Tel. No.: |
91-2646-272392/320797/655471/72 |
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Fax No.: |
91-2646-272313/348 |
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Regional
Offices : |
Located at : ·
·
Kolkata, ·
Jalandhar, ·
·
·
Ahmedabad, |
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Branches : |
Located at: ·
·
·
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DIRECTORS
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Name : |
Mr. Salil Singhal
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Designation : |
Chairman and
Managing Director |
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Address : |
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E-Mail: |
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Date of Birth/Age
: |
21.08.1946 |
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Date of
Appointment : |
03.12.1984 |
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Name : |
Mr. Mayank
Singhal |
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Designation : |
Managing Director
and Chief Executive Officer |
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Address : |
P P Singhal Marg,
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E-Mail: |
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Date of
Birth/Age : |
03.04.1973 |
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Date of
Appointment : |
28.09.1998 |
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Name : |
Mr. Pradhuman
Natvarlal Shah |
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Designation : |
Director |
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Address : |
Maker Bhawan No. 2,
18 new Marine Lines, Mumbai – 400 020, |
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Date of
Birth/Age : |
01.01.1929 |
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Date of
Appointment : |
07.09.1990 |
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Name : |
Mr. Satya Prakash
Vishnoi |
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Designation : |
Director |
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Address : |
C 9/9106 Vasant
Kunj, |
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Date of
Birth/Age : |
23.11.1934 |
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Date of
Appointment : |
29.01.2004 |
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Name : |
Mr. Anurag Surana
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Designation : |
Whole Time
Director |
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Address : |
Ameya Plot No. 1
/ 2, B/H Sagar Darshan Apartment, Devali, |
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E-Mail: |
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Date of
Birth/Age : |
22.01.1965 |
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Date of
Appointment : |
30.09.1998 |
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Name : |
Mr. Narayan K
Seshadri |
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Designation : |
Director |
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Name : |
Mr. Raj Kaul |
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Designation : |
Director |
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Name : |
Mr. Sukhdev
Nayyar |
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Designation : |
Director |
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Name : |
Mr. Narayan K.
Sheshadri |
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Designation : |
Director |
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Name : |
Mr. Pravin K.
Laheri |
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Designation : |
Director |
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Name : |
Mr. Bimal Kishore
Raizada |
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Designation : |
Director |
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Name : |
Mr. Rahul
Raisuarna |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Rajnish Sarna |
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Designation : |
CFO and President (IT) |
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Name : |
Mrs. Payal M. Puri |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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451532 |
6.05 |
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4863626 |
65.21 |
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(B) Public Shareholding |
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Mutual Funds / UTI |
4500 |
0.06 |
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Foreign Institutional Investors |
185413 |
2.49 |
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Foreign Venture capital Investors |
185413 |
2.49 |
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|
58735 |
0.79 |
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285313 |
3.82 |
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378716 |
5.08 |
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200 |
0.00 |
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|
6000 |
0.08 |
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Foreign Corporate
Bodies |
914800 |
12.27 |
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Directors |
92252 |
1.24 |
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Directors and their
Relatives |
31834 |
0.42 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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Total (A)+(B)+(C) |
7458334 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionsBUSINESS DETAILS
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Line of Business : |
Manufacturing and
Marketing of Pesticides, Industrial Chemicals and Polymers, etc. |
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Products : |
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Exports : |
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Countries : |
·
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·
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Imports : |
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Countries : |
·
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·
·
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Terms : |
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Purchasing : |
L/C, D/A and D/P
(90 days) |
PRODUCTION STATUS (As on 31.03.2010)
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
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Organo Phosphorous Compounds/ Industrial Chemicals |
Tones |
11260 |
9140 |
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Pesticides and other Formulations
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Tones |
5597 |
53200 |
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Polyurethane and others |
Tones |
7500 (In term of
Formulations) |
6400 (In term of
Formulations) |
GENERAL INFORMATION
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No. of Employees : |
Around 800 |
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Bankers : |
·
State
Bank of ·
State
Bank of ·
State
Bank of ·
ICICI
Bank Limited, 9 A, ·
Canara
Bank, ·
Canara
Bank, ·
Bank
of Rajasthan Limited, ·
Axis
Bank Limited, 151-152, Chetak Marg, ·
IDBI
Bank Limited ·
Export
– Import Bank of |
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Facilities : |
NOTES: 1)Term Loans are secured by way of first charge on pari passu basis by joint equitable mortgage through deposit of title deeds on all the immovable properties of the Company arid second charge ranking pari passu by way of hypothecation of movable properties, present and future Term Loans from Financial Institutions and Banks includes Rs.17.242 Millions Foreign currency loan. 2) Working capital loans ore secured by way of first charge on pari passu basis, by hypothecation of stocks of raw material, finished and semi finished goods, Stores and Spares not related to plant and machinery, bills receivable, book debts and all other movable properties and additionally secured by way of second charge on all the immovable properties of the Company in favour of the consortium bankers Working Capital Loan includes Rs.118.702 Millions. (Previous Year Nil) Packing Credit Foreign Currency loan. All the above loans are collaterally secured by personal guarantees by one or two Directors of the Company as specified in the respective agreements
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Banking
Relations : |
- |
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Auditors : |
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Name : |
B. D.
Gargieya and Company Chartered
Accountants, |
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Address : |
Bank of |
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Name : |
S. S. Kothari and
Company Chartered Accountants |
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Address : |
146 – 149,
Tribhuvan Complex, Ishwar Nagar, Mathura Road, New Delhi – 110065, India |
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Cost
Auditors : |
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Name
: |
K. G. Goyal and
Company Chartered
Accountants, |
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Address: |
8, Chitra Gupta Nagar,
Jyoti Nagar Railway Crossing, Jaipur – 302 005, |
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Associates : |
·
Wolkem
Limited It exports Wolkastonite to ·
Secure
Meters Limited Manufacturer of highly sophisticated and accurate solid state
electronic energy meters and energy management systems ·
Samaya
Investment and Trading Private Limited ·
Parteek
Finance and Investment Company Limited ·
Lucrative
Leasing Finance and Investment Company Limited ·
Binarvi
Holding Private Limited ·
Nansjay
Investment Private Limited ·
Polymeters
Response International Limited ·
Lipi
Data Systems Manufacturers of large size heavy-duty line printers for computers in
technical collaboration with a |
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Subsidiaries : |
· Pill Finance and Investment Limited ·
PI
Life Science Research Limited ·
PI Japan Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity shares |
Rs.10/- Each |
Rs.200.000 Millions |
|
5000000 |
Preference Shares |
Rs.100/- Each |
Rs.500.000 Millions |
|
|
Total |
|
Rs.700.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7105165 |
Equity shares |
Rs.10/- Each |
Rs.71.052 Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7087508 |
Equity shares |
Rs.10/- Each |
Rs.70.875 Millions |
|
2060000 |
Non cumulative Compulsory Convertible preference Shares |
Rs.100/- Each |
Rs.206.000 millions |
|
|
Total |
|
Rs.276.875
Millions |
Notes:
934810 Equity shares of Rs.10/- each fully paid up were allotted as
Bonus Shares by capitalisation of reserve in earlier years.
3543754 Equity shares of Rs.10/- each fully paid up were allotted as
Bonus Shares during the year by capitalising Rs.17.500 Millions from capital
redemption Reserve and Rs.17.937 Millions to General Reserve.
.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
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|
1] Share Capital |
276.875 |
35.438 |
35.400 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
1246.916 |
890.675 |
667.800 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
1523.791 |
926.113 |
703.200 |
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|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1053.229 |
1894.094 |
1643.600 |
|
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2] Unsecured Loans |
450.458 |
144.283 |
134.300 |
|
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TOTAL BORROWING |
1503.687 |
2038.377 |
1777.900 |
|
|
DEFERRED TAX LIABILITIES |
269.971 |
249.668 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
3297.449 |
3214.158 |
2481.100 |
|
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APPLICATION OF FUNDS |
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|
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|
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FIXED ASSETS [Net Block] |
1991.864 |
1782.123 |
1562.100 |
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Capital work-in-progress |
86.354 |
74.109 |
74.100 |
|
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INVESTMENT |
19.677 |
18.122 |
25.800 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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DEFERRED REVENUE EXPENDITURE |
0.000 |
3.698 |
0.000 |
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
1028.108
|
1042.233 |
654.200 |
|
|
Sundry Debtors |
1030.757
|
922.619 |
887.400 |
|
|
Cash & Bank Balances |
49.324
|
41.872 |
29.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
344.916
|
301.571 |
239.200 |
|
Total
Current Assets |
2453.105
|
2308.295 |
1810.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
662.419
|
492.745 |
|
|
|
Other Current Liabilities |
537.130
|
458.135 |
998.900 |
|
|
Provisions |
54.002
|
21.309 |
0.000 |
|
Total
Current Liabilities |
1253.551
|
972.189 |
998.900 |
|
|
Net Current Assets |
1199.554
|
1336.106 |
811.700 |
|
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|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
7.400 |
|
|
|
|
|
|
|
|
TOTAL |
3297.449 |
3214.158 |
2481.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5417.103 |
4614.400 |
4554.600 |
|
|
|
Other Income |
11.116 |
7.433 |
50.100 |
|
|
|
TOTAL (A) |
5428.219 |
4621.833 |
4604.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of Traded Goods |
135.667 |
240.858 |
|
|
|
|
Cost
of Materials |
3024.745 |
2725.678 |
|
|
|
|
Operating
Expenses |
361.588 |
248.921 |
|
|
|
|
Personnel
Expenses |
432.471 |
395.111 |
|
|
|
|
Administrative,
Selling and Other Expenses |
528.961 |
488.320 |
4232.900 |
|
|
|
Research
and Development Expenses |
51.479 |
49.076 |
|
|
|
|
Prior period adjustment |
0.031 |
0.025 |
|
|
|
|
Increase/(Decrease) in Finished Goods |
22.527 |
(165.767) |
|
|
|
|
TOTAL (B) |
4557.469 |
3982.222 |
4232.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
870.750 |
639.611 |
371.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
183.073 |
222.795 |
177.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
687.677 |
416.816 |
194.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
127.571 |
111.344 |
97.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
560.106 |
305.472 |
97.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
150.655 |
74.607 |
34.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
409.451 |
230.865 |
62.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
452.511 |
224.033 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
813.798 |
452.511 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
2010.095 |
1440.520 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1139.546 |
1125.529 |
NA |
|
|
|
Stores & Spares |
3.421 |
3.533 |
NA |
|
|
|
Capital Goods |
9.576 |
79.158 |
NA |
|
|
TOTAL IMPORTS |
1152.543 |
1208.220 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
57.77 |
32.57 |
17.75 |
|
QUARTERLY RESULTS
|
Particulars |
30.06.2010 (1st Quarter) |
|
Gross
Sales |
1392.100 |
|
Other
Operating Income |
03.800 |
|
Other
Income |
0.000 |
|
Total
Income |
1302.800 |
|
Total
Expenditure |
1108.100 |
|
PBIDT |
194.700 |
|
Interest
|
36.100 |
|
PBDT |
158.600 |
|
Depreciation |
35.100 |
|
Tax |
31.300 |
|
Fringe
Benefit Tax |
0.000 |
|
Deferred
Tax |
(5.500) |
|
Reported
Profit After Tax |
97.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.54
|
5.00 |
1.37
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.34
|
6.62 |
2.13
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.60
|
7.47 |
2.88
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.37
|
0.33 |
0.14
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.81
|
3.25 |
3.95
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.96
|
2.37 |
1.81
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject manufactures pesticides and insecticides. Piyush Singhal is the Chairman
and Salil Singhal is the Managing Director of the company. The manufacturing
unit is located in
PILL Finance and Investment is a 100% subsidiary of the company. As a part of
its diversification, it has set up a plant to manufacture polyurethane
compounds used in the adhesive industry at a project cost of Rs.23 millions and
also put up a compounding unit for supplying plastic and polymer moulders.
In 1999, the expansion which was undertaken at the Company's plant at Panoli
including state of art multi product plant for manufacturing of industrial
chemicals has been completed and is now fully operational.
The polymer business witnessed a revival and growth in business after a
prolonged recessionary situation with the industrial climate showing positive
trends.
BOARD
OF DIRECTORS
Mr.
SAUL SINGHAL Chairman and Managing Director
He has been leading the Company since July’79. He headed
Pesticide Association of India (now Crop Care Federation of India) as Chairman
for 17 years and is now Chairman Emeritus. He was the Chairman of the
Environment Committee and FICCI for 5 years. He was the Chairman of the Northern
Region of CII with responsibility of nine northern states / union territories
and over 2000 members.
He is currently on the Bard of Wolkem India Limited,
Historic Resorts Private Limited, The Lake Palace Hotels and Motels Private,
Limited, Secure Meters Limited, Somany Ceramics Limited, PILL Finance and
Investment Limited, Usha Martin Limited and Secure International Holdings Pte.
Limited (Formerly known as Entity Holding PTE Limited,
Mr.
MAYAN K SINGKAL, Managing Director and CEO
An Engineering Management Graduate from the
Mr.
ANURAG SURANA, Whole time Director
B.Com (Hons) graduate joined subject in 1995. He has handled
the polymer compounding business and later he managed the entire manufacturing
operations of the Company at Panoli, His currant responsibilities are managing
Company’s Custom synthesis business and overseeing manufacturing operations and
projects. He is also a Director on the Boards of PI Life Science Research
Limited, PILL Finance and Investment Limited and WILL Investments Limited
Mr.
PN. SHAH, Director
He is a Chartered Accountant and a partner of M/s Shah and
Co., a CA firm. He is on the Board of PI Industries since 1991. He was the
President of the ICAI Currently; he is also on the Beard of Indo Count
Industries Limited, Secure Meters Limited, Taparia Tools Limited, Lipi Data Systems
Limited. Wolkem India Limited, LIC Mutual Fund Trustee Company Private Limited
and Pranavoditya Spinning Mills Limited
Dr. S
P VISHNOI, Director
He holds a Masters degree in Maths and a PhD in Management
and Agricultural Economics, He Joined IAS in 1957, During his Tenure he
occupied important positions such as Principal Secretary Agriculture (Raj)
Advisor to
Mr.
NARAYAN K. SESHAGRI, Director
He is a Chartered Accountant and is a Director an the Board
of PI since 2006. He started his career with Arthur Anderson in the business
consultancy area, Later he was with KPMG and became the Managing Partner of the
business advisory practice of the firm He was the first and only Indian partner
an Anderson’s Global CEO Advisory Council. He is also the founder Chairman and
CEO of Halcyon Group, on investment advisory and management services
organization. He is also on the Board of Halcyon Resources and Management
Private Limited, Development Credit Bank Limited, DHFL Venture Capitol India
Private Limited, HGB Holdings Private Limited, Magma Fincorp Limited, Indrise
Investments, Kalpataru Power Transmission Limited, HRM Capital Advisors
Private, Limited, WABCO TVS India Limited, Halcyan Finance and Capital Advisors
Private Limited and Lindner Investments.
Mr.
RAJ KAUL, Director
He has varied experience in the global crop protection
business He began his career with NELCO, then he joined Ciba India and later
moved to Bayer India and become its Executive Director/CEO for their crop
protection business, He later moved to Bayer AG (Lever kusen, Germany), head
office and assigned to their M and A division, where he rose to become the Vice
President reporting to their Board, He has successfully concluded over 200 M
and A transactions in the areas of agro-chemicals, biotechnology etc.
Currently, he is also on the Board of Gowan Company,
Mr.
SUKH DEV NAYYAR, Director
He holds a Master Degree in Physics and non Associate of the
Institute at
Mr.
RAHUL RAISUARNA, Director
Mr. Rahut Rosurano posseses Masters Degree in International
Management from Thunderbird School of Global Management, USA arid also in
Business Administration from Graduate School of Management, Clark University,
USA Mr. Raisurana is presently holding position of Managing Director of
Standard Chartered Private Equity Advisory (India) Limited, Mr. Rahul Raisuarna
is also a Director on the Board of Mon Infraconstruction Limited He has over 19
years of wide ranging international professional experience. Mr. Roisurana
holds position of an Investor Director on behalf M/s Standard Chartered Private
Equity (
Mr.
BIMAL KISHORE RAIZADA, Director
Mr. Bimal Kishore Raizada is a Chartered Accountant from
England and Wales arid the Fellow Member of the institute of Chartered
Accountants in England and Wales, the Institute of Chartered Accountants of
India and a member of board of Governors, Institute of Internal Auditors, New
Delhi, Treasurer of the Association of UK Chartered Accountants in India, His
assignments have been with Rambufan in UK as Finance Manager, a subsidiary of
Boss Charrington London and with Warner
FINANCIAL
HIGHLIGHTS
Year 2009-10 has been a year of significant achievements and
witnessed spectacular growth in standalone and consolidated revenues and
profitability.
During the year, the net sales of the Company increased to
Rs.5420 Millions as compared to Rs.4610 Millions in previous years an increase
of 17% YoY. While all business segments of the Company reported increase in
sales, the key driver of the growth in sates was 41% YoY increase in the
exports of active ingredients and intermediates under contract manufacturing
and custom synthesis business.
The operating profit of the Company increased to Rs.874.700
Millions as compared to Rs. 643.200 Millions on increase of 36% YoY. The
operating profit margin increased to 16% in current year from 14% in the
previous year on account of improved margins in domestic agrochemicals and
Polymer business, increased revenues from custom synthesis, better capacity
utilization and efficient overheads cost management
The net profit (PAT) grew by 77% to Rs.409.500 Millions for
the year ended 31st March, 2010 from Rs 230.900 Millions in the previous year
Net profit margin increased to 7.6% during the year from 5.0% in the previous
year,
The Company’s net profit on a consolidated basis increased
to Rs.419 Millions during the year, as compared to Rs.242.500 Millions in the
previous year, a growth of 73%YoY.
The earning per share for the year stood at Rs. 57.77 per
share compared to Rs.32.57 per share for the previous year.
OPERATIONS
During the year, the country saw one of the worst monsoons in
last few decades. The long period average {LPA) rainfall was 22% short of
normal rainfall on aft
While the crop produce prices remained mostly remunerative
due to lower production, the crop protection products prices moved downward,
continuing she trend seen in the latter port of lost yeas mainly due to tower
raw material prices, especially in generic molecules.
However, despite these unprecedented adverse conditions, the
Company’s agri input business did reasonably welt. The revenue of this business
grew by 7% YoY but the EBITDA of this business grew by 30% mainly on account of
improved product margins, introduction of new products and efficient overheads
cost management.
The company is also expecting to launch a low toxicity
product in the year 2011, in the insecticide segment, further strengthening its
portfolio in rice and vegetables.
REVIEW
OF OPERATIONS
A.
Chemical business
Domestic
Agri Inputs Business
This business unit of Company provides inputs and solutions
to the format in the areas of agrochemicals, specially products and plant
nutrients.
Food grain area sown in kharif season declined by 6.5 per
cent compared to lost year arid food production is expected to be short by
around 16 per cent compared to the last year.
The second crop season (Rabi) was characterized by low pest
and disease occurrence in key crops (esp. Paddy. Potato) and erratic rainfall
in Southern states affecting crop like Chili, etc which affected demand far
agrochemicals.
The crop produce prices remained mostly remunerative driven
by inflationary pressures created by short supply and support from the
Government.
The crop protection product prices also saw a downfall,
counting the trend seen in the latter part of last year, mainly due to lower
raw material prices, especially in generic molecules. Due to the leadership
position of most of the brands, the company was able to maintain reasonable
margins in most of the generic products. It has been a strategy to create
leadership products and each of the Company’s products ranks # 1 or # 2. There
is a definite premium that the Company has created for the brands under its
fold.
The product has been actively recommended by many state
universities, for adoption in rice cultivation Nominee Gold wilt attain die status
of the largest brand of Rice herbicide in the coming years arid will contribute
significantly the growth of the Company This underlines the endeavor of the
Company to create leadership positions in all the categories it operates in
Plans are underway to scale up the Nominee Gold business to benefit from this
upside. This summarizes the Company’s particular strength; that of creating
brands and then creating customer reach end leadership for that brand by
leveraging its marketing and distribution infrastructure
It is deeply satisfying to see that this product will not
only bring lacs of acres of rice under herbicide use, and give higher rice
yields, but also save water, the most precious resource for life this would be
consistent with the Company’s philosophy to provide innovative solutions, as
also to be committed to environmental issues.
During the year, despite the bad agro-climatic season,
Company’s brand business grew by 5% YoY spearheaded by the robust performance
of Nominee Gold. The major growth was achieved in Eastern and Western stoles,
along with Karnataka and Kerala in South, with Northern states arid Andhra
Pradesh registering minor degrowth mainly due to poor climatic conditions.
Though the growth of institutional business of the Company
was marginally negative in the domestic market, it grew overall by 3%due to 20%
increase in export sales. The Company is also expecting to launch a low
toxicity product in the year 2010-11, in the insecticide segment, further
strengthening its portfolio in rice and vegetables.
During the period, the Company not only successfully
launched Nominee Gold; it has also filed for registration of another new
molecule for launch in the Year 2011-12. The Company continues its quest for
new molecules by signing four new agreements with potent holding companies to
evaluate their product in
To augment its portfolio in the herbicide segment, the
Company has signed on agreement with a leading multinational company to enter
the soybean herbicide segment. This will open doors for the company to
strengthen its portfolio, with newer molecules in the pipeline.
Despite a bad season, the company was proactively successful
in containing the operational costs. It writ also able to bring down working
capitol costs successfully far this business thereby augmenting performance.
OUTLOOK
The fundamentals of the Agriculture sector continue to be
strong underlying following facts :
• Indian food security is already under perceived threat,
with Government taking new steps to boast productivity in agriculture The
Government has already announced various programmes for investments in
agriculture.
• The sustained price rise of all the major food crags in
the last year has made the agriculture more profitable for the former; thereby
enticing him to protect his crop in a better manner.
• Farmers have to step up the use of agrochemicals, seeds
and fertilizers to enhance their crop yield and productivity
• With rising demand, and the consequent price increase,
focus of the former has shifted toward increasing the marketability (quality}
of his produce, by protecting it from damage caused by pests and diseases.
With the reviving economy, and rising incomes, there is
going to be a significant demand increase, both in terms of quality and
quantity of agricultural commodities. This demand will be further bolstered by
the quality shift seen in the food habits, demanding more productive use of
land in agriculture.
With the highly successful launch of a Blockbuster Brand -
Nominee Gold and similar new products in the pipeline, the Company is now ready
to move into the area of value creation of all stake holders to build on the
trust earned by it in the post 50 years. It plans to launch new exclusive
brands swiftly and make a success out of these by giving them the right product
stewardship, marketing arid distribution support The Company has definite
advantage when it carries to brand building given the solid track record and on
account of its unique marketing arid distribution strength.
INTERNATIONAL
FINE CHEMICALS END CUSTOM SYNTHESIS BUSINESS
This business unit of the Company deals in custom synthesis and
contract Manufacturing of chemicals including techno commercial evaluation of
chemical processes, process development, Lab and pilot scale-up and commercial
production. With additional business generated from its existing and new
clients, the Company continues to maintain its leadership position in the
Custom Synthesis space in
The Company has a robust front end including Europe and
Based on the new contracts signed with some leading European companies,
the Company has taken a decision to acquire land in the SEZ located at
Jambusar. It plans to invest amount of RS.2000.000 Millions at the new site in
the nets 2 -3 years. There remains good visibility of payback for this protect.
The Company has partnered with leading agro-chemicals, Pharmaceutical
and fine chemical companies in the world who hold it in high esteem for its
integrity and consistent quality of product and services. The Company’s forte
lies in providing end to end solutions to its customers The business model is
closely aligned to innovator requirements. Its philosophy of non-compete has
made the Company the preferred partner for leading MNC innovators. This it
expected to ease the ramp-up in revenues as customers grow their engagement
with the Company.
The year saw the signing of some contracts far the manufacture of some
newly patented active ingredients for the Japanese and Australian markets, the
commercial production of which will commence from the financial year 2010-11.
With its commitment to continue its growth inspired by science, the
Company has signed a research contract with one of the leading Universities of
Japan. Research in some new areas of application has already begun at the tote
of the art
The revenue of the Custom Synthesis Business continues to grow as par
out expectation, The business reported an increase of 40.5% over the previous
year, Due to constant efforts made by the Japanese business development team,
the company has commenced commercial production on some block buster products
and revenues from such products are expected in the current year.
Some of the Key Highlights of the performance of this business during
2009-10 are as Follows:
* New inquiries received in diverse areas of fine chemical products with
potential profitable ventures in the coming years.
Long term contracts signed includes:
• 3 Year Supply Agreement worth USD27 Mio for active Ingredient with a
Japanese Company
• 4 Year Supply Agreement worth USD36.7 Mia for Active ingredient with a
European Company.
Letter of Intent for 4 Year supply Agreement worth USD37.5 Mio
Intermediate with a European Company
• With the establishment of a sourcing office in
• Several new molecules were successfully synthesized in the areas of
Agro intermediates and active ingredients including amide fungicide and amide
herbicide,
• Scale up work done and commercial production commenced for a leading
rice herbicide
• Successful scale up of new chemistry molecules
OUTLOOK
Custom synthesis it expected to remain equal growth driver for the
Company in the immediate future. The business has demonstrated robust growth
year-on-year and given the recent expansion of capacities, multiyear contracts
and robust order book position, it is expected to continue to contribute
significantly to revenues and earnings of the company. The Company retains a
genetically distinct presence in the field of agrochemical custom synthesis -
especially where it comes to respecting IP. The strong product pipeline at R
and D and process development stage provides huge potential for further scaling
up of this business and is likely to sustain the goad momentum.
Projected Growth in sales in fiscal 2010-ll is expected to be about 50%
Over 2009-10
The business unit now having established credibility is working with customers
on their strategic projects where assurance of success, long term business and
growth potential is very high. Growth going forward is likely to be sustainable
given the Company’s niches in complex chemistry, low volume and high value
products and diversified applications of those products.
OTHER BUSINESS
Polymer
Compounding
The Company produces customized compounds of various polymers ranging
from PoIycarbonte(PC), Poly Phenylene Ether (PPE). Poty Butylenes
Plheraphihated (PBT) Poly Amides (PA6 and 66, Polypropylene (PP), ABS. etc in
this business. The compounds find application in auotomotive appliances (White
goods), Electrical and Electronics, Submersible Pumps, Light and Heavy
Engineering Industries. PL industries has created a dependable manufacturing
set-up with backing of a committed research infrastructure. The Company has the
flexibility to produce a variety of products in different lot of sizes and that
too at a competitive cost.
Some of the customer industries e.g automobile, construction material,
electronics which were majorly affected by the global slowdown from 3rd quarter
2008, started recovering from 2nd Quarter 2009. However volatility of basic
polymer prices, impact of currency fluctuations on imports and actual liquidity
were the other challenges for this business during the year the Company
continues to focus on leveraging innovations to deliver products that generate
better margins and are subject to lesser volatility.
Despite these challenges. The Company could still manage to registered
growth of 10% over previous year.
The trust an R and D as a key business enabler continue with 8% of the
annual revenue coming from newly developed grades. During the year, the Company
has developed PC/ABS and PC/PBT blends end also substituted some expensive raw
materials to achieve product economics. The Company also started exports in the
last quarter of FY2009- 10. As a result of all these focused efforts the growth
in the bottom line has been healthier than projected
OUTLOOK
Along with the automobile sector which is already in high gear, the
company expects that other key customer industries would have largely recouped
from the global meltdown, in the current year.
The outlook for this business remains positive with key growth drivers
for this business to be as under:
•
• With an estimated 50 mn houses under construction in
•
• Given the encouraging customer response, the export market can
generate further scope of selling high end engineering plastic products.
The changes made to the product mix, in terms of focusing on higher
margin products are expected to show good results, the Company continues to
expand its offering working on a regular basis to develop products that are
relevant to current market needs. The Company has consistently targeted
improved performance in Polymers based on its Understanding of key customer
needs. By providing single-window access the Company has built lasting relation
with its customers which will provide a value upside going ahead.
CONTINGENT
LIABILITY
Rs in Millions
|
Particulars |
31.03.2010 |
|
Disputed
Taxation demands not acknowledge as debts |
|
|
- Sales Tax |
14.001 |
|
- Excise Duty |
8.499 |
|
Counter Guarantee to GIDC |
3.285 |
FIXED ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures and Office Equipments
·
Vehicles
·
Library
·
Tools and Equipments
AS PER
WEB DETAILS
PROFILE
Subject is in the business of – Agri inputs, Fine Chemicals (CRAMS - Contract Research and
Manufacturing Services), Polymers and Engineering Services.
Founded in 1947 in
the city of lakes -
Subject is committed to growth, driven by its corporate philosophy, and aims to
achieve the highest standards in all its endeavors.
Subject’s strength lies in:
·
More than 30 years of strong business associations
with large number of leading multinationals across the globe.
·
One of the oldest, largest and most credible distribution
networks in rural
·
Strong management capabilities, research and
development and world class manufacturing infrastructure.
·
One of the leading companies in Contract Research
and Manufacturing Services (CRAMS), having long term tie-ups with leading
chemical companies across the globe for newly invented products.
·
Amongst the top 5 and fastest growing companies in
polymer compounding by providing innovative solutions.
Corporate
philosophy
Subject derives its strength from a formally adopted Corporate
Philosophy which, amongst other things, impels subject to:
·
Uphold a reputation for integrity,
honesty, straight-forward and just
dealings.
·
Be committed to the quality
of its products.
·
Be committed to its customers
·
Be innovative in
approach and thought.
·
Be open, friendly,
sincere and human in behavior and attitude.
·
Contribute to the community
as a part of our social responsibility
PRESS
RELEASE
08/01/2010 - PI
Participates in Marwar Krishi Utsav 2009
PI Industries Limited participated
in the two day conference cum exhibition – Marwar Krishi Utsav 2009 as
co-sponsor, held at Jodhpur.Confederation of Indian Industry (CII) organized
the Marwar Krishi Utsav 2009 : Bringing New Technologies to the Farmers, the
Kisan Goshthis cum Showcase of Agriculture and Food Products on 8-9 December
2009 at
In his welcome address, Mr. Salil
Singhal, Chairman and Managing Director, PI Industries, who was also the Event
Chairman for the Utsav, highlighted the importance of modern technology in
increasing the productivity. In this context, he applauded the participation of
industrial houses that were present in the exhibition for disseminating
information and sharing knowledge with the farmers regarding the same. Mr.
Singhal said that 90 stalls from various agri field ie. fertilizers, seeds,
pesticides, submercible pumps, irrigation systems exhibited their products.
Mr Mahipal Maderna, Minister for
Water Resources, Mr. Gurmeet Singh Kunnar, State Minister for Agriculture, Mr.
Badriram Jakhad, Member of Parliament, Pali, also addressed at Krishi Utsav. Mr
Kishore Khaitan, Chairman CII Rajasthan State Council proposed the vote of
thanks. The inaugural session and exhibition was attended by approx 4500
farmers, in addition to industry, Government officials, NGOs, Research
Institutions, etc.
The event featured Kisan Goshthis
of key personnel from the Government, Leaders from leading companies, Farmers,
Academia, Journalists, Non Governmental Agencies and experts from agriculture
Sector, etc. More than 2000 farmers from
In a Plenary Session on Agri
Inputs: Seeds, Fertilisers, Pesticides and Best use of local resources, our Regional
Manager for Rajasthan Dr. Purnesh Mathur highlighted about the management of
Micronutrients and Pesticides on the crops grown in Rajasthan. Some of the
speakers who have addressed the session are Dr Sarabjit Singh Chahal, Vice
Chancellor, Maharana Pratap University for Agriculture and Technology; Dr
Pratap Narain, Vice Chancellor, Agri University of Bikaner, Mr N S Ranawat,
Deputy Director,CCS- NIAM; Vice President, Chambal Fertilisers; officials ; Mr
Sitaram Gupta, Executive Director, Lupin Humana Welfare; Shri N V Patil,
Director, CAZRI; Mr R K Saxena, Additional Director, Agriculture etc.
In totality, over 6000 farmers
from
P I Industries Limited post’s 77% y-o-y growth in FY10Net Profit
Board recommends 1:2 bonus and Rs. 2 per share dividend
Robust performance outlook based on ~ US$ 100 million order book,
Uptickin current productssale and new product launches
New
Delhi, May 19, 2010: PI Industries Limited, one of
Performance Highlights for the quarter ended 31st March,
2010 (Compared to Q4 FY2009)
• Net Profit up by 83.2% to Rs.105.77 million
• EBITDA at Rs. 220.06 million was higher by 42.1%. Margin
expanded to 15.7% from 13.1%
• Net Revenue at Rs. 1398.12 million, up 17.9%
• Domestic Agri-input Sales at Rs. 752.43 million, up 25.3%
• Custom Synthesis exports at Rs. 497.96 million, up 8.8%
• Polymer Compounding revenues at Rs.147.73 million and were
higher by 16.1%
Performance Highlights for the year ended 31st March, 2010
(Compared to FY2009)
• Net Profit to Rs. 409.45 million, growth of 77.4%.
• Consolidated Net Profit increased to Rs. 419.02 million
from Rs. 242.5 million last year, up by
73%
• EBITDA at Rs. 874.36 million was higher by 36.0%. Margin
increased to 16.1% from 13.9%
• Net Sales at Rs. 5417.10 million, up 17.4%
• Domestic Agri-Inputs Sales at Rs. 2996.03 million, up 7.4%
• Custom Synthesis exports at Rs. 1910.68 million, up 40.5%
• Polymer Compounding revenue at Rs. 510.39 million, thus
rising9.7%
• EPS at Rs. 57.77 from Rs. 32.57
• Board recommends1 for 2 bonus and final dividend of Rs. 2
per equity share
Commenting on the Company’s performance Mr. Salil Singhal,
Chairman, PI Industries Limited, said: “We are pleased to report very good
results based on good performances in each of our operating segments. Our
earnings continue to improve in line with the evolution of our business matrix,
by design. The visibility of performance continues to enhance and we have been
able to develop a very healthy order book position in our Custom Synthesis
business.
PI is an organization founded on respect for IPR,
partnerships and innovation in processes and solutions. There are vast
opportunities across our lines of business and we are confident that we shall be
able to deliver sustainably high growth rates based on our inherent strengths.
PI has created the necessary enabling infrastructure in terms of its knowledge
and skills, production and research capacities, innovator relationships and its
people to enable us to ramp-up our operations. The period ahead is very
exciting for the Company as we plan to broaden and deepen our business
footprint in our different businesses.”
Mr. Mayank Singhal, Managing Director and CEO, PI Industries
Limited, added: “We firmly believe that we are creating growth platforms as we
move ahead.”
“In Agro-Input we saw excellent sales this quarter. PI
continues to reap rewards from our partnerships with leading global players.
Going forward we have lined up an exciting product pipe
line of new products where we will leverage our ability to
create trustworthy brands.”
“The Custom Synthesisbusiness continues to achieve targeted
growth. PI is translating its innate competence in chemistry and processes into
business momentum. We are enhancing capacity to keep pace with the wide array
of product contracts recently signed. In this business we follow a unique model
based on innovation and partnership.”
“Our Polymer Compounding business is also seeing an upward trend
on the back of global economic recovery. Key user industries such as auto,
construction and engineering are especially buoyant. This business focuses on
providing customized solutions to a diverse array of industries
and customers.”
“PI is at an interesting strategic juncturewhere each of the
businesses is leveraging growth opportunities and weremain confident of
maintaining the pace of value creation going ahead.”
OUTLOOK
• To continue supporting farmers in developing sustainable
agriculture by providing holistic and innovative solutions
• Higher revenues in Agri-Inputand Custom Synthesis expected
to result in margin expansion as increase in revenues would more than amortize
incremental costs
• Improved long-term visibility on domestic Agri-Inputs sales
to be backed by:
- New product launches under exclusive marketing rights
which are under evaluation and registration
- New patented agrochemical launches under co-marketing
agreements with MNC’s
- Marketing agreements for entry into new agri-product
categories such as hybrid seeds
• Growth in Custom Synthesis, backed by a strong pipeline of
molecules under different stages of development/contracting
- Order book position in excess of US $ 100 million.
- Tie-up with leading innovators for contract manufacturing,
either as sole supplier, or as one of the two suppliers.
- Capacity enhancement planned through an investment of
Rs.2000.000 Millions in a SEZ over next 2-3 years
About
PI Industries Limited (PI)
Incorporated in 1947, PI Industries (BSE: 523642, ISIN ID:
INE603J01014) focuses on Agri-Input, Custom Synthesis and Polymer compounding
with strength of over 1,100 employees, PI Industries currently operates three
formulation and two manufacturing facilities as well as four multi product
plants under its three business units across Jammu and Gujarat. These
state-of-art facilities have integrated process development teams with in-house
engineering capabilities.
P I
Industries is into following business areas:
Agri-Input
Business
PI is one of
Custom
Synthesis Business
The Fine Chemicals business unit of PI focuses on Custom
Synthesis which entails dealing in custom synthesis and contract manufacturing
of chemicals including techno commercial evaluation of chemical processes,
process development, lab and pilot scale up as well as commercial production.
The Company has an impressive product portfolio as result of exclusive tie ups
with leading agro-chemical, pharmaceutical and fine chemical companies around
the world. PI has made substantial investments in building state of art process
research and manufacturing facilities of chemical intermediates and active
ingredients with special focus on strong process R and D capabilities. This
business unit is expected to be the primary growth driver with strong revenue
visibility as
Polymer
Compounding Business
This business focuses on manufacturing of various
engineering plastic compounds from Polycarbonate (PC), Poly Phenylene Ether
(PPE), and Poly Butylenes Ptheraphthalate (PBT) Poly Amides (PA6 and 66), Polypropylene
(PP) to name a few. These compounds find application in Automotive, Appliances
(White goods), Electrical and Electronics, Submersible Pumps, Light and Heavy
Engineering industries. This sector is characterized by high barriers to entry.
PI is well equipped to capitalize on that. With
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.46.02 |
|
|
1 |
Rs.73.21 |
|
Euro |
1 |
Rs.60.70 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
- |
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
|
64 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.