MIRA
INFORM REPORT
|
Report Date : |
28.04.2011 |
IDENTIFICATION
DETAILS
|
Name : |
INDIA TOURISM
DEVELOPMENT CORPORATION LIMITED |
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Registered Office : |
Scope Complex, Core 86th Floor, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
31.03.1965 |
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Com. Reg. No.: |
55- 004363 |
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CIN No.: [Company
Identification No.] |
L74899DL1965SGOI004363 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELI01794C DELI04803B DELI00063A DELI01030B DELI04838B |
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PAN No.: [Permanent
Account No.] |
AAAC10825J |
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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 : |
To construct, manage and market hotels, Beach Resorts,
Restaurants. To provide transport, entertainment, shopping and conventional services.
To produce, distribute, sell tourist publicity material and to render
consultancy-cum-managerial services in |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 12000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established Government of India undertaking company having satisfactory track. There appears some losses being incurred by the company in the current year i.e 2009-10. However, networth appears to be satisfactory. Trade relations are reported as fair. Payments are reported to be usually correct and as per commitment. 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
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
|
Registered Office/ |
Scope Complex, Core 86th Floor, |
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Tel. No.: |
91-11-24360303/ 24360182/ 85/ 1832/ 0249 |
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Fax No.: |
91-11-24360233/ 24362353 |
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E-Mail : |
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Website : |
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Corporate
Marketing Division : |
5th Floor, Jeeven Vihar, |
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Tel No.: |
91-11-23732403/ 23748165 |
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Fax No.: |
91-11-23341459/ 23748094 |
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|
ATT Network : |
Located at:
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DIRECTORS
As On 30.12.2010
|
Name : |
Mr. Zubin Jal Karkaria |
|
Designation : |
Director |
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Address : |
52, |
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Date of Birth/Age : |
21.05.1968 |
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Date of Appointment : |
19.07.2007 |
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Date of Cessation : |
18.07.2010 |
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DIN No.: |
00397088 |
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Name : |
Mr. Pirthi Pal
Singh |
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Designation : |
Whole Time
Director |
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Address : |
F-17/117, Sector
– 8, Rohini, |
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Date of Birth/Age : |
01.03.1952 |
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Date of Appointment : |
25.08.2005 |
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Date of Cessation : |
28.02.2010 |
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DIN No.: |
00042637 |
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|
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Name : |
Mr. Bharat
Bhushan Edodiyil Kunhiraman |
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Designation : |
Nominee Director |
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Address : |
C-II – 94, Moti
Bagh 2, |
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Date of Birth/Age : |
14.01.1955 |
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Date of Appointment : |
12.04.2007 |
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DIN No.: |
01124966 |
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Name : |
Ms. Diali Khanna |
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Designation : |
Nominee Director |
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Address : |
133, C-II, Flats,
Satya Marg, Chanakya Puri, |
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Date of Birth/Age : |
230101952 |
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Date of Appointment : |
10.01.2011 |
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DIN No.: |
03395440 |
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Name : |
Mr. Anand Sube
Singh Kumar |
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Designation : |
Nominee Director |
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Address : |
9-A, |
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Date of Birth/Age : |
11.08.1961 |
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Date of Appointment : |
29.07.2010 |
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DIN No.: |
03194060 |
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Name : |
Mr. Pradeep Kumar
Agarwal |
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Designation : |
Whole Time
Director |
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Address : |
C-88, Sector –
19, Gautam Budh Nagar, Nodia – 201303, |
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Date of Birth/Age : |
29.09.1964 |
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Date of Appointment : |
29.07.2010 |
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DIN No.: |
01683484 |
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Name : |
Mr. Lalit Kumar
Panwar |
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Designation : |
Chairman Cum
Managing Director |
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Address : |
Flat No. A-4, Old
Rajinder Nagar, |
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Date of Birth/Age : |
11.07.1955 |
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Date of Appointment : |
21.04.2010 |
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DIN No.: |
03086982 |
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Name : |
Mr. Sanjay
Kothari |
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Designation : |
Chairman Cum
Managing Director |
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Address : |
C-11/11, |
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Date of Birth/Age : |
24.06.1956 |
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Date of Appointment : |
01.12.2009 |
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Date of Cessation : |
21.04.2010 |
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DIN No.: |
01291740 |
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Name : |
Mr. Rajiv Makin |
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Designation : |
Whole Time
Director |
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Address : |
2366, Sector – D,
Pockt – II, Vasant Kunj, |
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Date of Birth/Age : |
17.07.1952 |
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Date of Appointment : |
17.10.2008 |
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Date of Cessation : |
31.07.2010 |
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DIN No.: |
2404756 |
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Name : |
Mr. Ashok Pahwa |
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Designation : |
Director |
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Address : |
27, Lajpat Nagar
– IV, |
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Date of Birth/Age : |
27.01.1942 |
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Date of Appointment : |
17.04.2007 |
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Date of Cessation : |
16.04.2010 |
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DIN No.: |
00303862 |
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Name : |
Mr. Romesh Chopra
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|
Designation : |
Director |
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Address : |
25 A, Vasant
Vihar Palam Marg, |
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Date of Birth/Age : |
21.07.1943 |
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Date of Appointment : |
17.04.2007 |
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Date of Cessation : |
16.04.2010 |
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DIN No.: |
01799586 |
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Name : |
Mr. Jose Dominic |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
27.12.1950 |
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Date of Appointment : |
17.04.2007 |
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Date of Cessation : |
16.04.2010 |
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DIN No.: |
00088695 |
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Name : |
Mr. Jyotindra
Jain |
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Designation : |
Director |
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Address : |
D-1/1323, Vasant
Kunj, Near Haritage School, Gali No. 4, New Delhi – 110067, Delhi, India |
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Date of Birth/Age : |
05.06.1943 |
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Date of Appointment : |
19.07.2007 |
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Date of Cessation : |
18.07.2010 |
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DIN No.: |
01799675 |
KEY EXECUTIVES
|
Name : |
Mr. Virendra
Kumar Jain |
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Designation : |
Company Secretary |
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Address : |
House No. 20/3,
Gali No. 13, East Ajad Nagar, |
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Date of Birth/Age : |
30.08.1967 |
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Date of Appointment : |
15.12.2008 |
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Pan No.: |
AAOPJ5695G |
MAJOR SHAREHOLDERS
As On 31.03.2011
|
Names of
Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
79,000,500 |
92.11 |
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|
79,000,500 |
92.11 |
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Total shareholding of Promoter and Promoter Group (A) |
79,000,500 |
92.11 |
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(B) Public Shareholding |
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|
|
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|
6,750,275 |
7.87 |
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|
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|
18,625 |
0.02 |
|
|
6,768,900 |
7.89 |
|
Total Public shareholding (B) |
6,768,900 |
7.89 |
|
Total (A)+(B) |
85,769,400 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
85,769,400 |
- |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs. 0.100 million
BUSINESS DETAILS
|
Line of Business : |
To construct, manage and market hotels, Beach Resorts,
Restaurants. To provide transport, entertainment, shopping and conventional
services. To produce, distribute, sell tourist publicity material and to
render consultancy-cum-managerial services in |
GENERAL
INFORMATION
|
No. of Employees : |
2962
(approximately) |
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Bankers : |
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Banking Relations : |
-- |
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Auditors : |
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Name : |
Mr. Ashok
Grover Chartered
Accountant |
|
Address : |
90/20,
Malviya Nagar, |
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Pan No.: |
AAAFG2383E |
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|
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Subsidiaries : |
CIN: U55101AS1985GOI002306
CIN: U55101AR1987SGC002759
CIN: U55101MP1985SGC002735
CIN: U17111PY1986SGC000417
CIN: U45202CH1998SGC021936
CIN: U55100BR1983SGC001855
CIN: U55101OR1983GOI001276 |
CAPITAL
STRUCTURE
As On 31.03.2010
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 millions |
|
|
|
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Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
85769400 |
Equity Shares |
Rs.10/- each |
Rs.857.694 millions |
|
|
|
|
|
Notes:
a)
15238 equity shares of Rs. 100/-e ach (since converted
ino 152380 equity shares of Rs. 10/- each) were allotted as fully paid up
pursuant to the amalgamation order (1966) under section 396 of the companies
act 1956.
b)
75000 equity shares of Rs. 100/- each (since
converted into 750000 equity shares of Rs. 10/- each) were allotted as fully
paid up in consideration for transfer of ownership of some properties.
c)
18250000 equity shares of Rs. 10/- each fully paid
have been allotted during the year to the president of
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 |
|
|
|
|
|
1] Share Capital |
857.694 |
675.194 |
675.194 |
|
|
2] Share Application Money |
0.000 |
730.000 |
730.000 |
|
|
3] Reserves & Surplus |
2280.259 |
1875.867 |
1722.376 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Deferred Government Grants |
1.135 |
2.056 |
2.140 |
|
|
NETWORTH |
3139.088 |
3283.117 |
3129.710 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.074 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.074 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3139.088 |
3283.117 |
3129.784 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
538.720 |
460.836 |
432.010 |
|
|
Capital work-in-progress |
445.746 |
91.062 |
30.280 |
|
|
|
|
|
|
|
|
INVESTMENT |
81.381 |
83.094 |
81.110 |
|
|
DEFERREX TAX ASSETS |
300.599 |
169.685 |
138.452 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
745.518 |
812.496 |
94.772 |
|
|
Sundry Debtors |
110.189 |
98.536 |
1235.558 |
|
|
Cash & Bank Balances |
3008.020 |
3158.524 |
3564.972 |
|
|
Other Current Assets |
65.589 |
58.035 |
58.620 |
|
|
Loans & Advances |
856.551 |
888.281 |
1043.425 |
|
Total Current Assets |
4785.867 |
5015.872 |
5997.347 |
|
|
Less
: CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry
Creditors |
1118.472 |
813.106 |
1272.489 |
|
|
Others Current Liabilities |
1392.740 |
990.513 |
1299.078 |
|
|
Provisions |
502.013 |
755.710 |
1003.716 |
|
Total Current Liabilities |
3013.225 |
2559.329 |
3575.283 |
|
|
Net Current Assets |
1772.642 |
2456.543 |
2422.064 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
21.897 |
25.868 |
|
|
|
|
|
|
|
|
TOTAL |
3139.088 |
3283.117 |
3129.784 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2715.873 |
3727.561 |
|
|
|
|
Other Income |
281.594 |
406.762 |
|
|
|
|
TOTAL (A) |
2997.467 |
4134.323 |
4702.714 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material and services |
392.997 |
1048.650 |
1649.591 |
|
|
|
Employees Remuneration and Benefits |
1411.944 |
1186.731 |
881.550 |
|
|
|
Operating and other expenses |
1299.181 |
1540.789 |
1417.614 |
|
|
|
Extraordinary Items |
57.291 |
66.545 |
14.280 |
|
|
|
TOTAL (B) |
3161.413 |
3709.625 |
3963.035 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(163.946) |
424.698 |
739.679 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.003 |
0.000 |
0.155 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(163.949) |
424.698 |
739.524 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
41.165 |
42.777 |
45.455 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(205.114) |
381.921 |
694.069 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
(62.006) |
128.257 |
253.306 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(143.108) |
253.664 |
440.763 |
|
|
|
|
|
|
|
|
|
|
Transfer from
Currency translation reserve |
0.000 |
0.157 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
(143.108) |
153.648 |
282.774 |
|
|
|
Proposed Dividend |
0.000 |
85.769 |
135.039 |
|
|
|
Dividend Tax |
0.000 |
14.404 |
22.950 |
|
|
BALANCE CARRIED
TO THE B/S |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
(1.85) |
3.76 |
6.53 |
|
|
|
- Diluted |
(1.85) |
2.96 |
6.09 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
|
|
1ST
Quarter |
2nd
Quarter |
|
Net Sales |
|
709.970 |
651.650 |
|
Total Expenditure |
|
733.260 |
831.310 |
|
PBIDT (Excl OI) |
|
(23.290) |
(179.660) |
|
Other Income |
|
51.160 |
79.020 |
|
Operating Profit |
|
27.870 |
(100.640) |
|
PBDT |
|
27.870 |
(100.640) |
|
Depreciation |
|
19.500 |
15.490 |
|
Profit Before Tax |
|
8.370 |
(116.130) |
|
Profit After Tax |
|
8.370 |
(116.130) |
|
Net Profit |
|
8.370 |
(116.130) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(4.77)
|
6.14 |
14.76 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(7.55)
|
10.25 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.85)
|
6.97 |
10.80 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.07)
|
0.12 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.96
|
0.78 |
1.14 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.59
|
1.96 |
1.68 |
LOCAL
AGENCY FURTHER INFORMATION
PERFORMANCE HIGHLIGHTS:
The Company has registered a turnover of Rs.2997.500 millions during the
financial year 2009-10 as against Rs.4134.300 millions in the previous financial
year 2008-09. The decline in turnover is mainly due to decline in turnover of
some of the business segments like Ashok Creative Division due to non receipt
of business from the Ministry of Tourism, ATT Division, Hotel Division due to
non availability of rooms due to renovation of hotel properties mainly in ‘The
Ashok’, Engineering Division due to deployment of Engineering staff in the
renovation of hotel properties. The turnover is also adversely impacted by the
Global recession. During the current year 2009-10 the Corporation suffered the
loss (before tax) of Rs.205.100 millions as against profit before tax of
Rs.381.900 millions in the previous year 2008-09. The loss occurred mainly due
to decline in turnover, increase in wage cost as a result of implementation of
revision in pay scales of non executive employees on IDA pattern w.e.f.
1.1.2007 and provision for arrears up to 31.3.2010 and liability for property
tax to NDMC in respect of 3
DIVISION WISE FINANCIAL PERFORMANCE
i. The turnover of Hotel Division during the year 2009-10 has decreased
to Rs.1967.100 millions from Rs.2119.100 millions in the previous year 2008-09
mainly due to decrease in occupancy and nonavailability of room due to
renovation particularly ‘The Ashok’ and as a result the division incurred the
net loss of Rs.315.500 millions as against the net profit of Rs.129.400
millions in the previous year mainly due to increase in wage cost.
ii. The turnover of A.I.T. Division during the year 2009-10 has
marginally increased to Rs.55.800 millions from Rs.55.600 Millions in the
previous year 2008-09. During the year 2009-10, the duty free shops in
operation are at
iii. The turnover of ATT Division including the ATSS (i.e. Ashok Tourist
Service Station) during the year 2009-10 has decreased to Rs.55.50 millions
from Rs.75.94 Millions in the previous year 2008-09. The ATT Division has
suffered a net loss of Rs. 2.43 millions as against the net loss of Rs.2.31
millions in the previous year mainly because of increase in wage cost.
iv. The turnover of the Ashok Creatives Division during the year 2009-10
has been recorded at Rs.30.100 millions (previous year Rs.530.600 millions) and
as a result the division has suffered a loss of Rs.23.500 millions as against
net profit of Rs.9.200 millions mainly because of reduced turnover due to
nonreceipt of international and domestic campaign business from the Ministry of
Tourism.
v. The Engineering Division has achieved a turnover of Rs.39.100
millions during the year 2009-10 (previous year Rs.173.100 millions) with net
loss of Rs.50.400 millions as against net loss of Rs. 39.400 millions in the
previous financial year. The decline in turnover is due to deployment of
engineering staff in the renovation of hotel properties particularly ‘The
Ashok’.
vi. The turnover of ARMS (Events) division during the current financial
year 2009-10 has decreased to Rs.72.000 millions as compared to Rs. 118.800
millions in the previous year 2008-09 with net profit of Rs.1.800 million as
against Rs.9.100 millions in the previous year mainly because of reduced
turnover due to austerity measures announced by the Govt. of India which
adversely affected the turnover of the Division.
vii. The Ashok Institute of Hospitality and Tourism Management(AIH and
TM) during the current year 2009-10 has achieved turnover of Rs.44.500 millions
as against Rs.54.200 millions in the Previous year 2008-09 with net profit of
Rs.2.400 (previous year net profit of Rs. 15.400 millions). The turnover is
reduced due to reduced business due to non-commencement of training courses
from Ministry of DONER.
viii. The Sound and Light Shows have recorded a turnover of Rs. 7.300
millions (Previous year Rs.5.200 millions with net profit of Rs.1.600 million
(previous year profit of Rs. 0.100 million). ix. The Corporate H.Q. being the
administrative office during the current financial year 2009-10 has earned an
income of Rs. 226.400 millions as compared to Rs.318.300 millions in the
previous year 2008-09 mainly consisting of income from Interest on short term
deposits with banks from the surplus funds available with it. The decline in
income from interest is mainly due to the expenditure on renovation of hotel
properties being carried out during the year 2009-10 and onwards.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Global and Indian Scenario
i. The GDP growth of 6.8% during the fiscal 2009-10 may allay to some
extent the concerns of slowdown in demand and a resultant negative impact on
the economy. However the rising food prices and high level of general inflation
continues to be a cause for concern and a subject matter of government and
RBI’s policies.
ii. When economy expands globally, tourism as an industry develops as
there is more money in the hands of people and they use it for travelling.
Segment Wise Performance
i.Hotel Division (Delhi Hotels)
A. In view of the CWG 2010 event, lot of new capacity addition has been
initiated in the Hotel Industry which is likely to result into more competition
in the hospitality segment in the coming years.
B. ‘The Ashok’ was designated as the flagship Hotels of ITDC and Samrat
and Janpath were designated as the Games Family Hotels for the CWG 2010. The
Ashok and Samrat have been used as the officials hotels while Janpath Hotel has
been used by the Press and Media. In view of CWG 2010, all the above said three
hotels have spent major part of the year being under major renovation and
product upgradation. The vision and the broad parameters that have been kept in
mind while planning and executing the product upgradation was to use the top of
the line products as well as brands. Even in opening of the new Food and
Beverage outlets, the hotels have aligned with the best of the brands in the
industry. The expected impact which is already being realized is that the
products are seen in a new light. The target clientele has also
accordingly upgraded as a part of there long term objectives.
C. Some of the initiatives taken in Delhi Hotels are :
- At the Ashok,
the public areas including the lobby, Tea Lounge and the transition area
to the Conventional hall have been totally renovated. A new Wine lounge
has also been created to cater to the niche clientele. Exclusive Italian
marble ‘Botticino Classico’ has been used in the entire renovated public
areas.
- Three floors
of rooms, including the guest corridors have gone under complete
renovation.
- The existing
Executive Lounge at the 6th floor has been renovated and a new Lounge at
7th floor has also been launched.
- Hotel Janpath
too, has renovated its lobby as well as the shopping arcade completely
along with most of its rooms, while the remaining rooms had been renovated
last year. The guest corridors have been covered with tinted glass and the
same have been air-conditioned.
- 2 guest
floors of Hotel Samrat have also gone under complete renovation.
- In terms of
Food and Beverage, the existing outlets, F-Bar, Capitol, Frontier, Mashrabiya,
Sagar Ratna, The Chakras, Cibo and Mismo continued to retain their
popularity. Durbar restaurant at The Ashok has been relaunched as ‘Outh’
in its new avatar.
Many new outlets have either been opened or are in the process amongst
which the following appear prominently :
a) LAP – A high end club at Hotel ‘Samrat’ being run by the film star
Arjun Rampal together with A D Singh of ‘Olive’ fame.
b)
c) Kumgang – A much awarded ‘Korean’ restaurant has been relaunched at
The Ashok
d) Swagath – Non-Vegetarian Coastal cuisine restaurant – A unique
concept in itself has been launched at Hotel Janpath.
D. Many new outlets are already in the pipeline and shall be launched
soon, some of which are :
a) International cuisine Resto- Bar at Samrat Hotel
b) Fine Dining Pan Asian restaurant at Hotel Samrat
c) Jain Vegetarian cuisine restaurant at The Ashok
Hotels Division(Hotels outside
E. There are five ITDC owned Hotels located at Mysore, Patna, Jammu,
Bhubaneswar and Jaipur, two DoT properties and one Restaurant at Agra.
Recession coupled with high wage bill due to implementation of 6th Pay
Commission’s recommendation have severely affected the financial performance of
the units outside
F. Measures such as renovation/ refurbishment of product and service are
being taken for improving the performance of the units. Major renovation of
rooms at Hotel Jaipur Ashok was taken up. Extensive renovation of Hotel Jammu
Ashok, Hotel Patilputra Ashok and Kalinga Ashok commenced and partially
completed during the financial year. Renovation of 24 guest rooms and two heritage
suite at LMPH,
G. Swot Analysis (Hotel Division)
Strength
- The three
- Besides,
Hotels, complementary businesses providing entire range of tourism
experience in one bouquet such as Travels, Events, Sound and Light shows,
Duty free trade at Airports and Seaports.
- The Ashok has
the largest inventory of suites in
- ITDC has the
exclusive task to cater to all the state guests including head of the
states visiting the country at Hyderabad House, PM residence, Vigyan
Bhawan. The Ashok plays a critical role in providing the support to these
VVIP venues.
- ITDC also
represents
Weakness:
- Though highly
skilled, the manpower is quite aged as compared to the counterparts in
private hotels mainly on account of the HR policies and compulsions.
- ITDC neither
have any set up of direct international marketing overseas nor any
representatives/consolidators resulting into fewer bookings as compared to
the competitors. More staff retiring with no recruitments happening, much
of the staff is taken on short term contracts. These contractual staff may
not be the similar skill level or even with commitment or motivation that
is required in the industry to outshine the competition.
ii) Ashok Creatives Division
A. The Ashok Creatives continued to play a key role in tourism promotion
and developmental projects of the Ministry of Tourism as also for various
clients. Since the Division did not win any of the international and domestic
campaigns of the Ministry of Tourism, during the year as partnering with an
empanelment ad agency did not materialize, concentration has been given to
execute creative jobs which is the Division’s forte.
B. Advertising assignments were taken up for various Govt. Agencies such
as Directorate of Income Tax, Ministry of Tourism etc. Among the new projects,
an exclusive Tourism promotion/Informative CD was prepared for West Bengal
Tourism; a 10 minute exclusive overview film on the CWG 2010 Delhi for the
Organizing Committee; a 30 second film on promotion of Rural Tourism for
telecast on national and international electronic media networks and an 8
minute film produced for the Ministry of Women and Child Development.
C. On the Design and Print production front, the Division designed and
produced several jobs for various Govt. Departments. Besides exclusive menu cards
(in various international languages) for The Ashok Group Restaurants at Hotel
Ashok, Samrat, Janpath, LMPH etc. have been prepared along with graphic items.
In terms of thematic, texual and visual contents, the menus display the
Division’s exceptional creative inputs.
D. The Ashok Creatives is pioneer in mounting of Sound and Light Shows
(SEL) at different locations of the country. The shows at Sarnath (UP),
Mehrauli (
E. With a view to strengthen its commercial base, Ashok Creatives is
putting in aggressive efforts for empanelment as a Government Advertising
Agency with a similar mandate. To bring in new clients as well as to retain the
existing clients, individual panels are being formed for various genres of
creative work ranging from designers, text writers, website and portal developers,
online applicators, 3 D Animation, walk through animation, OOH digital
printers, typesetters, etc. with an objective of i) using their expertise for
jobs received by Ashok Creatives and ii) partnering them wherever they can
source business for Ashok Creatives to secure assignments in various Government
organizations on the basis of public-private partnership as initiated in the
recent past.
F. Swot Analysis
Strength :
- Multifarious
activities consisting of design and print production, advertising services
and business development, mounting and operation of Sound and Light Shows,
production of films, TV commercials, etc.
Weakness :
- Manpower not
exposed to the latest developments in their respective fields through
workshops, seminars, etc. held in
iii) Ashok International Trade Division
A. Through AIT Division, ITDC offers duty free shopping facilities to
international travellers.
B. With all the major airport retail operations in
C. The advent of private duty free operators in
D. Through ITDC Aldeasa Pvt. Ltd. a joint venture company between ITDC
and Aldeasa
E. Swot Analysis
Strength :
- AIT Division
has the unique experience of running operations in multiple locations
which comes from having operated duty free shops at all the international
airports in
- In addition
to traditional merchandise that is retailed through duty free shops, AIT
Division has acquired a rich experience of sourcing indigenous merchandise
such as tea, handicrafts, organic spices etc. which it can profitably
exploit in times to come.
Weakness :
- Because of
low volume of business, ITDC is losing its attractiveness as a viable
Joint Venture business partner for prospective international operators
whom they need to be able to bid for future airport concession rights and
go to the next level.
- Because of
limited space at Goa and
iv)Ashok Travel and
A. Ashok Travels and
B. Despite the major fall in tourist traffic in the year 2009-10 because
of flue, economic melt down in the west and austerity measures introduced by
the Govt. on the travel, ATT division is poised for the major growth this year
and have taken new initiatives to reach the target of 100 crores in the next
two years :
a. On the way to launch the online Travel Portal – which is the need of
the hour.
b. Purchasing new fleet of 30 vehicles.
c. Establishing the full fledged tour division – both Domestic and
Inbound. ATT is already handling the series of in bound tours from
d. New Domestic packages for Kerala, Shimla, Manali,
e. Developing the various choices for the L.T.C. seekers particularly
for Govt. Employees.
C. Over all, ATT is reviving and exploring the new avenues for the
growth and consolidation of the divison.
D. Swot Analysis
a. The various strengths of the Division include :
- Good image as
Transport Service Provider having excellent network.
- Influence
being a government enterprise.
b. There are certain weaknesses including dependency on empanelled
operators, poor brand perception, cumbersome decision making and less
credibility with suppliers for delay of payments.
c. The opportunity includes launch of ATT portal, the Division being the
major transport supplier, there is vast need of transport in
Ministries/Government Departments and PSUs. The threat perception before the
Division includes IRCTC is going in a big way for inbound Tours and Hotel
Bookings, Direct sale by Air India and tourist service portals by private
agencies.
v) Ashok Institute of Hospitality and Tourism Management
A. The Ashok Institute of Hospitality and Tourism Management, an ISO
9001:2000 certified institute run by ITDC in
B. The AIH and TM has been conducting 4 years Bachelor in International
Hospitality Business Management course affiliated to the
C. Ministry of Tourism, Govt. of India has entrusted ‘Capacity Building
Training for Service Providers to the AIH and TM as one of its implementing
agencies which includes training of stake holders for the forthcoming CWG 2010
under which the training has been imparted to the CISF jawans, Auto Rickshaw
drivers, Unclassified Hotels and the staff of State Emporiums.
D. AIH and TM is doing the training programme in Hospitality skills for
BHEL, NTPC, IFS Academy, ITBP, IRCTC, CAG and many more. It is also giving
industrial exposure training to Hotel Management students of Govt. and private
colleges.
a) Bachelors in International Hospitality Business Management.
b) Diploma in Air Hostess, Travel and Hospitality Management.
c) Certificate Courses in Hotel Operational Departments.
F. Under the above franchising arrangements, Agreements have been signed
with Institutes in Mumbai, Kolkata and
G. Plan is underway to initiate AIH and TM to affiliate with a
prestigious international institute like Cornell University (USA)/ Florida
International University (USA)/ Model University (Vienna) to run hospitality
management programmes at new residential institute at Kosi, (Delhi – Agra
Midway tourist facility on National Highway) and also to set up an Ashok
Tourism Security Academy at Kosi, to fill up a huge gap between demand and
supply.
H. Swot Analsis
Strength:
- HRD Division
of ITDC under Ministry of Tourism, Govt. of
- An ISO
9001-2000 Certified Institution
- ITDC Hotels
for training and development of the trainees
- Strategic
tie-ups with
Weakness:
- Lack of adequate
infrastructure conforming to AICTE guidelines
- Limited ITDC
Faculty strength
- Absence of
modern training aids
vi) Ashok Consultancy and Engineering Division
A. The Ashok Consultancy and Engineering Division of ITDC works mainly
in the following three fields :
a) Execution of Tourism infrastructure projects.
b) Consultancy Services to Ministry of Tourism and State Tourism
Departments for Engineering related projects.
c) Maintenance, upkeep, renovation, up-gradation and expansion of ITDC
owned and joint venture Hotels.
B. The Engineering Division continued to prepare Detailed Project
Reports for the development of major tourist circuits/destinations in various
states of the country. During the CWG 2010, the Division is involved in big way
to renovate hotels mainly The Ashok, Samrat and Janpath and furnishing of
additional alternative accommodation at Games Village Akshardham and Vasant
Kunj, a CWG project.
C. The Engineering Division is also executing tourist infrastructure
projects funded by Ministry of Tourism/ various State Governments in the states
of UP, Bihar,
D. The Division has also been entrusted with the task of illumination
works of prestigious monuments in
E. Swot Analysis
Strength:
- The
Engineering Division has taken up and successfully completed projects in
extreme and remote areas of the country in different geographical and
weather conditions.
- The Division
has carried out major renovation of its properties with the latest state
of the art technology.
Weakness :
- Being a
government organization, strict and lengthy procedures are to be followed
for award and execution of projects.
- With project scattered
all over the country, the cost of manpower is high as number of people
need to be deputed for individual projects.
vii) Event Division
A. The Event Division manages, conferences and exhibitions both within
the country and abroad and has established itself as a leader in the field of
Event Management.
B. The Event Management Division has handled more than 80 events during
the year 2009-10 including AARDO Conference, CABE Conference, National Tourism
Awards, Ministerial Meeting on Re-engineering Doha, Golden Jubilee Celebrations
of IOC, Regional conference of State Tourism Ministers, SAARC, CWG Security
Meeting, Delhi High Level conference on Climate Change. The Grand Prix Award
conferred on the Incredible Award and Television commercial produced in 2008,
UNWTO- Japanese Symposium on Encouraging Tourism Exchange in
C. Through its Event Management activity, the Division also acts as a
definite catalyst in the generation of business for other divisions of the
Company like Ashok Group of Hotels, Ashok Travels and
D. Swot Analysis
Strength
- Being a
Government Company, it enjoys the confidence of ministries/
departments/PSUs of the Govt. of India
- As a
government organization, all codal formalities are complied with and thus
there is transparency, which also finds favors with the government
organizations.
Weakness
- Though
working in the present business scenario which calls for immediate
fulfillment of client’s needs and aspirations, time consuming approval
process negates the prompt deliverance and also involves lot of paper
work.
viii) Corporate Marketing Division
The Corporate Marketing Division has been handling promotion and
marketing of ITDC Hotels and the reservation of ITDC Hotels is undertaken by
its Centralized Reservation Service.
ix) Furnishing of DDA flats at
A. ITDC has been entrusted with the task of supplying and installation
of furniture and furnishing of 1101 flats at
B. ITDC completed the furnishing of 1101 flats spread over in 34 Towers
at
OUTLOOK
i. Tourism has been a major social phenomenon of societies all over the
world. It is a large service industry globally in terms of gross revenue as
well as foreign exchange earnings. Tourism has the potential to grow at a high
rate and ensure consequential development of the infrastructure of the
destinations. It has the capacity to capitalize on the country’s success in the
services sector and provide sustainable models of growth.
ii. The creation of niche tourism products like heliport tourism,
medical tourism, wellness tourism, adventure tourism, cruise tourism and caravan
tourism has served to widen the network of this sector. A major step has been
the issuing of guidelines for five year tax holiday has been obtained to
promote the growth of new hotels.
iii. Due to CWG 2010 with the completion of major renovation/upgradation
and latest technological advancement of our flagship hotels in
UNAUDITED
FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 31.12.2010
Rs. In Millions
|
Particulars |
Quarter ended on 31.12.2010 |
Nine months ended on 31.12.2010 |
|
a) Net Sales / Income from Operations |
976.399 |
2318.701 |
|
b) Other Operating Income |
0.000 |
0.000 |
|
Total Income |
976.399 |
2318.701 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
|
|
|
(b) Consumption of Raw Materials / cost of services rendered |
280.874 |
767.066 |
|
(c) Employees Cost |
335.552 |
1000.734 |
|
(d) Repair and maintenance |
392.097 |
483.821 |
|
(e) Depreciation |
15.559 |
50.547 |
|
(f) Other Expenditure |
176.914 |
498.400 |
|
Total Expenditure |
1200.998 |
2800.558 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
(224.597) |
(481.657) |
|
Other Income |
100.520 |
250.021 |
|
Profit/(Loss) before Interest and Exceptional items |
(124.077) |
(231.336) |
|
Interest |
0.000 |
0.000 |
|
Profit / (Loss) after interest before Exceptional items |
(124.077) |
(231.336) |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
(124.077) |
(231.336) |
|
Provision for Taxation |
0.000 |
0.000 |
|
Add Transfer from currency transition reserve |
0.000 |
0.000 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
(124.077) |
(231.336) |
|
Extraordinary Items |
|
|
|
Net Profit/(Loss) for the period |
(124.077) |
(231.336) |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
657.694 |
657.694 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
-- |
|
Earning Per Share
(EPS – in Rupees) |
|
|
|
Basic EPS before extra ordinary items |
-- |
-- |
|
Diluted EPS before extra ordinary items |
-- |
-- |
|
Basic EPS after extra ordinary items |
-- |
-- |
|
Diluted EPS after extra ordinary items |
-- |
-- |
|
Public Share Holding |
|
|
|
- Number of Shares |
6765900 |
6765900 |
|
- Percentage of shareholding |
7.89% |
7.89% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
Nil |
Nil |
|
- Percentage of shares(as a % of the total share capital of the company) |
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
79000500 |
79000500 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100% |
100% |
|
- Percentage of Share (as a % of the total share capital of the company) |
92.11% |
92.11% |
SEGMENT REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE
LISTING AGREEMENT
Rs. In Millions
|
S. No |
Particulars |
Quarter ended on 31.12.2010 |
Nine months ended on 31.12.2010 |
|
1 |
Segment Revenue |
|
|
|
A |
Hotel Division |
729.703 |
1661.328 |
|
B |
International Trade Division |
26.386 |
47.276 |
|
C |
Ashok Travels and |
194.401 |
560.565 |
|
D |
Engineering Consultancy projects and creative |
34.987 |
66.395 |
|
E |
Headquarter and others (Event management, hospitality and tourism
management institute and SEL shows) |
91.442 |
233.156 |
|
|
Total |
1076.919 |
2565.722 |
|
|
Less: Inter Segment Revenue |
0.000 |
0.000 |
|
|
Net sales / income from
operations |
1076.919 |
2565.722 |
|
|
|
|
|
|
2 |
Segment Results |
|
|
|
|
Profit / (loss) before tax
and interest from each segment |
|
|
|
A |
Hotel Division |
(177.118) |
(320.653) |
|
B |
International Trade Division |
(0.239) |
(14.325) |
|
C |
Ashok Travels and |
0.611 |
(8.547) |
|
D |
Engineering Consultancy projects and creative |
1.545 |
(28.281) |
|
E |
Headquarter and others (Event management, hospitality and tourism
management institute and SEL shows) |
51.122 |
139.970 |
|
|
Total |
(124.077) |
(231.836) |
|
|
Less: i) Interest |
|
|
|
|
ii) Other Un-allocable
expenditure net off |
|
|
|
|
iii) Other un-allocable
income |
|
|
|
|
Total profit before tax |
(124.077) |
(231.836) |
|
|
|
|
|
|
3. |
Capital Employed (segment assets – segment
liabilities) |
|
|
|
A |
Hotel Division |
(493.231) |
(493.231) |
|
B |
International Trade Division |
(25.711) |
(25.711) |
|
C |
Ashok Travels and |
5.816 |
5.816 |
|
D |
Engineering Consultancy projects and creative |
(909.359) |
(909.359) |
|
E |
Headquarter and others (Event management, hospitality and tourism
management institute and SEL shows) |
3502.010 |
3502.010 |
|
|
Total |
2079.525 |
2079.525 |
Notes:
- The
figures have been recast wherever necessary.
- No
complaint from investors was outstanding at the beginning of the quarter.
Two correspondence / complaints were received and resolved during the quarter.
No complaint from investors was pending at the end of the quarter.
- The
above results have been taken on record by the board of directors in their
meeting held on 10.02.2011.
- Out
of Rs. 730.000 Millions obtained from Government of India through preferential
allotment Rs. 400.100 millions have been utilized for the purpose for
which the funds were obtained i.e against renovation of Hotel “The Ashok
New Delhi, during the period effective from the date of allotment till
31.12.2010.
- Disclosure
pursuant to clause 41 (IV) b and c of listing agreement are annexed here
with.
Disclosure pursuant
to clause 41 (IV) b and c of listing agreement are annexed here in below:
Auditors' qualification of audited accounts of previous accounting year
having financial impact (Net of Tax) on the profit and management: reply is as
under:
a) Amount of Rs. 132.612 millions
(previous year 332.612 millions) shown as recoverable from demerged units for
the period from 01.04.2001 till the date of physical transfer on account of
funds transferred and expenses incurred on behalf of the said units, but not received till date, has been
considered good for recovery by the management.
As per the Share Purchase Agreement between the purchasers, transferee
companies and Government of India (Department of Tourism), the post closing
adjustments arc to be settled by the Department of Tourism with the respective
purchasers on the basis of
audited accounts of disinvested units as of 31.03.2001. Therefore the amount of Rs. 132.612 millions (Previous
year Rs. 132.612 millions
comprising of transfer of funds from Corporate office/remittances made and
expenses incurred by Headquarter and other units on behalf of disinvested units
and net of other transactions)
has been shown as recoverable from the respective 15 transferee companies on accounts of carrying on the business of
disinvested units for and on account of and in trust for transferee companies
during the period from 01.04.2001 upto date of handing over of the respective
units in terms of the provisions of the Scheme
of demerger duly approved by the Department of Company Affairs, is
included in Loans and Advances. The claims have been lodged with the Department
of Tourism, Government of India and the decision of the Government on these claims is awaited. The disclosure to this effect
has already been made in the notes to Accounts (Note no, 8) of the earlier year,
b) Impairment in the value of assets/partly
completed assets aggregating to Rs. 20.669
millions (Previous year 7 20.656 millions) included under capital work in progress has not been provided.
The physical inspection of the incomplete hotel project at Gulmarg since 1984-85 has been carried out by
the corporation's engineers, who have opined
that the expected realizable value of the assets will be more than the amount
invested upto 31.03.2008 of Rs. 20.629 millions and consequently no
provision for impairment has been considered necessary.
WEBSITE DETAILS:
PROFILE:
Subject is
one of the largest Hospitality companies in
Ashok Travels and Tours (ATT) is
one of the largest travel and tour operators in
ATT is an IATA approved agency and a member of national and International
travel and tourism organisations like TAAI,
IATO, JATA ASTA and PATA.
ATT operates from important tourist destinations throughout
The comprehensive services are executed with maximum efficiency taking into
account every minute details. ATT takes you across
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.44.40 |
|
|
1 |
Rs.73.26 |
|
Euro |
1 |
Rs.65.17 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.