MIRA
INFORM REPORT
|
Report Date : |
29.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
BALMER LAWRIE AND COMPANY LIMITED |
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|
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|
Registered Office : |
Balmer Lawrie House, 21, Netaji Subhas Road, Kolkata – 700
001, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
18.02.1924 |
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Com. Reg. No.: |
21-04835 |
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CIN No.: [Company
Identification No.] |
L15492WB1924GOI004835 |
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TAN No.: [Tax
Deduction and Collection Account No.] |
CALB00200E |
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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 : |
Manufactures
industrial packaging, barrels and drums, LPG cylinders, greases and
lubricants, leather chemicals, functional additives and marine freight
containers. |
RATING and COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 18500000 |
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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 reputed company having good track. Financial
position of the company is good. Trade relations are fair. Business is
active. Payments are regular and as per commitment. The company can be considered good for business dealing 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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office / Corporate Office : |
Balmer Lawrie House, 21, Netaji Subhas Road, Kolkata – 700
001, West |
|
Tel. No.: |
91-33-22225322 / 5314 / 2222 5218 |
|
Fax No.: |
91-33-2248 3768 / 4558 / 2243 4477 / 4478 / 4479 |
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E-Mail : |
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|
Website : |
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Overseas
Offices : |
Locate At: |
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|
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SBU-Industrial Packaging : |
149, |
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Tel. No.: |
91-22-2413 2421 |
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|
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|
SBU-Greases &
Lubricants: |
P-43, |
|
Tel. No.: |
91-33-24505306 |
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|
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|
SBU-Leather Chemicals : |
32, |
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Tel. No.: |
91-44-594 1456 |
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SBU-Travel & Tours |
4th Floor, Core 8, Scope Complex, |
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Tel. No.: |
91-11-2436 0535 |
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|
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SBU- Logistics Services: |
21, |
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Tel No.: |
91-33-2213 4644 |
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|
|
|
SBU- Refinery and Oil Field
Services : |
21, |
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Tel No.: |
91-33-22225610/22134674 |
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|
|
|
Other Offices |
Located at : Cargo Ahmedabad,
Grease and
Lubricants Chennai, Kolkata, Mumbai and Silvassa Industrial
Packaging Chennai, Kolkata,
International
Business Kolkata and Mumbai
Leather Chemicals Chennai and
Research and
Development Chennai and Kolkata
Speciality
Containers
Tea Packaging and
Exports
Travel and Ahmedabad, |
DIRECTORS
|
Name : |
Mr. S. K. Mukherjee |
|
Designation : |
Managing Director |
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Name : |
Mr. Shri Prakash |
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Designation : |
Govt. Nominee Director |
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Name : |
Mr. VLVSS Subba Rao |
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Designation : |
Govt. Nominee Director |
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Name : |
Mr. V. Sinha |
|
Designation : |
Director (Service Businesses) |
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|
Name : |
Mr. V. N. Sharma |
|
Designation : |
Director ( Manufacturing Business) |
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Qualification : |
B. Tech, MBA |
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Name : |
Mr. K. Subramanyam |
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Designation : |
Director (Finance) |
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|
Name : |
Mr. Kashi C. Murarka |
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Designation : |
Independent Director |
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|
Name : |
Mr. Arun Seth |
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Designation : |
Independent Director |
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|
Name : |
M P Bezbaruah |
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Designation : |
Independent Director |
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Name : |
P K Bora |
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Designation : |
Independent Director |
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|
Name : |
Mr. Asish K. Bhattacharyya |
|
Designation : |
Independent Director |
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|
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|
Name : |
Abha Chaturvedi |
|
Designation : |
Independent Directors |
KEY EXECUTIVES
|
Name : |
Amit Ghosh |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
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2) Foreign |
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(B) Public Shareholdings |
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1) Institutions |
|
|
|
a) Mutual Funds |
827178 |
5.08 |
|
b) Financial Institutions/Banks |
10528 |
0.06 |
|
c) Central Government / State Government(s) |
7485 |
0.05 |
|
d) Insurance Companies |
1551359 |
9.53 |
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c) Foreign Institutional Investors |
276494 |
1.70 |
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|
|
|
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2) Non – Institution |
|
|
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a) Bodies corporate |
10583197 |
64.98 |
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|
|
|
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b) Individuals |
|
|
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i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
2479529 |
15.22 |
|
ii. Individual Shareholders holding nominal share capital in excess Rs.0.100
Million |
432808 |
2.66 |
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|
|
|
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c) Any other |
|
|
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NR Holding |
117505 |
0.72 |
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|
|
|
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Total |
16286081 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufactures
industrial packaging, barrels and drums, LPG cylinders, greases and
lubricants, leather chemicals, functional additives and marine freight
containers. |
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Products : |
|
PRODUCTION STATUS As on 31.03.2010
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Greases
and Lubricating Oils |
|
M.T. / K.L. |
74280 |
43210 |
|
Barrels
and Drums |
|
Nos. |
3908500 |
3919666 |
|
Blended
Tea including Bulk, Packets and Tea Bags |
|
M.T. |
3000 |
125 |
|
Leather
Auxiliaries |
|
M.T. |
3900 |
5964 |
GENERAL INFORMATION
|
Suppliers : |
·
Eastern Polycrafts Industries Limited ·
Flexi Pack India Private Limited ·
Jarikela L ( ·
Blows Can Industries ·
·
Sangido Enterprises ·
Channel Plastics Private Limited ·
Aristo Packers ·
Blow Packaging ·
Plastic Processors ·
A S Shah ·
·
Ramanayaki and Company ·
Kamini Engineering Works |
|
|
|
|
No. of Employees : |
1994 (Approximately) |
|
|
|
|
Bankers : |
v
Allahabad Bank v
Bank of v
Canara Bank v
HDFC Bank Limited v
IndusInd Bank v
Standard Chartered Bank v
State Bank of v
The Hongkong and Shanghai Banking Corporation
Limited v
United Bank of v
Vijaya Bank |
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|
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|
Banking
Relations : |
-- |
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Statutory Auditors : |
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|
Name : |
Messrs J. Gupta and Company Chartered Accountant |
|
Address : |
12, |
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Branch Auditors
: |
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|
Name : |
Messrs Padmanabhan Prakash and Company Chartered Accountants |
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Address : |
5, Smith Road, 2nd Floor, Northern Wing, Chennai – 600002, |
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|
|
|
Name : |
Messrs M.M. Nissim and Company Chartered Accountant |
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Address : |
Barodawala Mansion, B-Wing, 3rd Floor, 81, Dr. Annie Besant
Road, Worli, Mumbai – 400018, Maharashtra, India |
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|
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|
Name : |
Messrs H.S. Rustagi and Company Chartered Accountant |
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Address : |
4654/21, Daryaganj, 2nd Floor, |
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Internal Auditors : |
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|
Name : |
Messrs Haribhakti and Company Chartered Accountants |
|
Address : |
Geetanjali Apartments, Flat No. 7G, 7th Floor, 8B, |
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Associates/Subsidiaries : |
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|
|
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Holding Company: |
Balmer
Lawrie Investments Limited |
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|
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Collaborations : |
v
Chevron Research and Technology Company, v
Fuchs Petrolub AG, v
Hispano Quimica SA, v Nyco SA, France v
Royal Packaging v
Tectrans Technology v
v
Transamerica Leasing Inc, v
Vanderbilt Corporation, |
|
|
|
|
Memberships : |
Confederation of Indian Industry |
|
|
|
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Joint Venture: |
v
Transafe Services Limited (formerly known as
Indian Container Leasing Company Limited ) v AVI-OIL India Private Limited v Balmer Lawrie (UAE) LLC v Balmer Lawrie-Van Leer Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9065547 |
Equity Shares in cash |
Rs.10/- Each |
Rs.90.656
Millions |
|
448130 |
Equity shares allotted as fully paid shares
pursuant to Amalgamation of Steel Containers Limited and industrial containers
limited with the company |
Rs.10/- Each |
Rs.4.481
Millions |
|
6772404 |
Equity Shares allotted as fully paid bonus
shares by way of capitalization of General reserves and Share premium |
Rs.10/- Each
|
Rs.67.725
Millions |
|
|
|
Total |
Rs.162.861 Millions |
Note :- Out of above, 10064700 Equity Shares are held
by Lawrie Investments Limited (Holding Company).
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 |
162.861 |
162.861 |
162.861 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4456.742 |
3720.615 |
3085.556 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4619.603 |
3883.476 |
3248.417 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
64.166 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
64.166 |
|
|
DEFERRED TAX LIABILITIES |
110.008 |
53.008 |
141.008 |
|
|
|
|
|
|
|
|
TOTAL |
4729.611 |
3936.484 |
3453.591 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1749.743 |
1691.823 |
1610.977 |
|
|
Capital work-in-progress |
218.975 |
38.597 |
70.943 |
|
|
|
|
|
|
|
|
INVESTMENT |
439.412 |
500.597 |
471.412 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
916.968
|
788.472
|
863.595
|
|
|
Sundry Debtors |
2446.731
|
2335.623
|
2525.270
|
|
|
Cash & Bank Balances |
2671.658
|
2487.332
|
1069.359
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
904.341
|
683.809
|
630.417
|
|
Total
Current Assets |
6939.698
|
6295.236
|
5088.641
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
3738.680
|
3440.180
|
3077.822
|
|
|
Provisions |
879.537
|
1149.588
|
712.915
|
|
Total
Current Liabilities |
4618.217
|
4589.768
|
3790.737
|
|
|
Net Current Assets |
2321.481
|
1705.468
|
1297.904
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
2.355 |
|
|
|
|
|
|
|
|
TOTAL |
4729.611 |
3936.484 |
3453.591 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
6608.602 |
5513.637 |
5133.462 |
|
|
|
Trading Goods |
18.111 |
20.051 |
6.235 |
|
|
|
Turnkey Project |
79.841 |
219.708 |
484.785 |
|
|
|
Services |
9426.736 |
10634.253 |
8780.630 |
|
|
|
Other Income |
592.557 |
578.009 |
453.471 |
|
|
|
TOTAL (A) |
16725.847 |
16965.658 |
14858.583 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw
Materials Consumed |
4748.062 |
4133.171 |
3745.668 |
|
|
|
Purchase
Trading Goods |
14.990 |
15.209 |
4.949 |
|
|
|
Purchase
Turnkey Projects |
126.016 |
210.907 |
462.401 |
|
|
|
Cost
of Services |
7674.709 |
8710.146 |
7330.266 |
|
|
|
General
Expenditure |
2567.796 |
2274.643 |
1916.813 |
|
|
|
Prior
Period Adjustments |
1.404 |
0.930 |
0.892 |
|
|
|
Accretion/Decretion
to Inventories |
(52.982) |
(0.152) |
(24.889) |
|
|
|
TOTAL (B) |
15079.995 |
15344.854 |
13436.100 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1645.852 |
1620.804 |
1422.483 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
116.062 |
105.167 |
118.216 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1529.790 |
1515.637 |
1304.267 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
356.870 |
499.500 |
435.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1172.920 |
1016.137 |
869.267 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1220.391 |
885.332 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
300.000 |
300.000 |
NA |
|
|
|
Dividend |
374.580 |
325.722 |
NA |
|
|
|
Tax on Dividend |
62.213 |
55.356 |
NA |
|
|
BALANCE CARRIED TO
THE B/S |
1656.518 |
1220.391 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Goods and components |
68.412 |
96.734 |
68.158 |
|
|
|
Interest and Dividend |
59.708 |
59.346 |
44.233 |
|
|
|
Services |
25.022 |
32.388 |
23.267 |
|
|
|
Freight, Insurance, Exchange Gain and
Miscellaneous items |
0.462 |
1.426 |
1.458 |
|
|
TOTAL EARNINGS |
153.604 |
189.894 |
137.116 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
199.809 |
129.505 |
185.930 |
|
|
|
Stores & Spares |
1.066 |
1.963 |
2.032 |
|
|
|
Capital Goods |
16.078 |
19.261 |
1.077 |
|
|
|
Turnkey Purchases |
0.000 |
0.000 |
2.825 |
|
|
|
Traded Goods |
0.000 |
0.000 |
7.630 |
|
|
TOTAL IMPORTS |
216.953 |
150.729 |
199.494 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.72 |
0.62 |
53.37 |
|
QUARTERLY / SUMMARISED
RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
5087.600 |
5004.900 |
4997.000 |
|
Total Expenditure |
4692.200 |
4603.600 |
4631.900 |
|
PBIDT (Excl OI) |
395.400 |
401.300 |
365.100 |
|
Other Income |
120.700 |
74.800 |
49.600 |
|
Operating Profit |
516.100 |
476.100 |
414.700 |
|
Interest |
10.900 |
11.000 |
3.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
505.200 |
465.100 |
411.300 |
|
Depreciation |
29.300 |
30.000 |
30.900 |
|
Profit Before Tax |
475.900 |
435.100 |
380.400 |
|
Tax |
157.700 |
139.800 |
125.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
318.200 |
295.300 |
254.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
318.200 |
295.300 |
254.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.01
|
5.99
|
5.83
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
23.15
|
27.49
|
25.41
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.60
|
19.20
|
19.46
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.39
|
0.40
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.00
|
1.17
|
1.19
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.50
|
1.37
|
1.34
|
LOCAL AGENCY FURTHER INFORMATION
Company History:
Subject is a Calcutta-based company. Manufactures industrial packaging,
barrels and drums, LPG cylinders, greases and lubricants, leather chemicals,
functional additives and marine freight containers. It also undertakes tea
exports and trading, travel, tours, and cargo and engineering services such as
turnkey projects, energy-audit and consultancy and freight-container repairs.
It is the largest manufacturer of steel barrels in
Overview
The Company's strong performance continued in 2009-10
despite difficult economic conditions, especially during the first half of the
year. In a year marked by cautious approach after the significant slow-down in
the growth rate in the second half of 2008-09 following the financial crisis
that began in the industrialized nations in 2007 and spread to economies across
the world, the Company maintained its performance, which is evident from the
following:
- The Company
recorded net sales of Rs.16730.000 millions as against Rs.16970.000
millions in 2008-09, a marginal drop of 1% over the previous year.
- Profit Before
Tax increased from Rs. 1520.000 millions in 2008-09 to Rs.1530.000
millions in 2009-10.
- Profit After
Tax which crossed the Rs.1000.000 millions mark in the last year for the
first time, further increased (from Rs.102 millions in 2008-09) to Rs.
1170.000 millions in 2009-10, an increase of almost 15%.
- Four segments
viz., Industrial Packaging, Greases and Lubricants, Travel and Tours,
Logistics Infrastructure and Services were the main revenue generators out
of which the manufacturing businesses - Industrial Packaging and
- Greases and
Lubricants - registered significantly higher turnover relative to the
previous year.
Management
Discussion and Analysis Report
An analytical
Report on the businesses of the Company is furnished along with this report
under the heading “Management Discussion and Analysis”.
Report on
Subsidiary
Balmer Lawrie (
Balmer Lawrie (UK) Limited
(‘BLUK’) is a wholly owned subsidiary of the Company and its principal business
activities were Leasing and Hiring of
Marine Freight Containers and Tea Warehousing, Blending and Packaging. BLUK has
since exited from both these business activities.
Proceeds from the sale of the
above two businesses are being used to fund other business opportunities. In
the financial year, BLUK formed an equal partnership Joint Venture with PT
Imani Wicaksana, Indonesia to manufacture and market lubricating greases and
other lubricants in Indonesia. The Joint Venture Company (JVC) was formed on
15th February 2010.
The JVC – now functioning under
the name and style of 'PT. Balmer Lawrie
Exemption from
attaching accounts of the Subsidiary
The Ministry of Corporate Affairs,
Report on Joint
Ventures
AVI-OIL India
Private Limited (AVI-OIL)
During 2009-10, Avi-Oil sustained
its performance with growth in every area as compared to the previous year,
achieving the highest sales since its inception, despite several constraints
and competition from imports.
Avi-Oil continued to maintain its
registrations with DGAQA, DGCA, Naval Aircraft Servicing Development
Organization and the Sri Lankan air-force. Avi-Oil obtained Type Approvals /
Provisional Clearances from CEMILAC for number of products during the year
taking the total number of approved products to 88.
In addition to the military
business, Avi-Oil increased its export sale of ester base-stocks to
Avi-Oil accords high priority to
the environment and has consequently planted more than 1500 trees / plants
within its premises and maintained its zero effluent status.
Avi-Oil has recommended dividend
at the rate of Rs. 1.25 per share [equivalent to 12.5 %], for the financial
year 2009-10 compared to Re. 1.00 per share [equivalent to 10%] declared and
paid in relation to previous year i.e. 2008-09.
Balmer Lawrie-Van
Leer Limited (BLVL)
BLVL started the financial year
with sluggish export demand against the background of the global financial
crisis. BLVL’s Steel drum closure Division is predominantly dependent on
exports. The impact of global economic slowdown felt during the last quarter of
2008-09 continued till June, 2009. The sudden spurt in demand witnessed for
Plastic Containers since February’09 was also short lived. However, the impact
of financial stimulus and packages initiated by the developed countries like
USA, UK ,China, Japan, and Indian Government in particular led to improvement
in general business confidence and revival of demand both local and export
since July 2009. During the first few months of the financial year, BLVL went
through a consolidation phase due to slowdown especially after completion of
work on capacity expansion of steel drum closure Division, which helped BLVL to
end the year remarkably well by achieving overall volume growth of around 40%
in steel closures and 14% in plastic containers/liners.
During the year 2009-10 net income
of BLVL grew by about 28% to Rs.1572.700 millions and it achieved a profit
before tax of Rs.319.500 millions, which includes a profit of Rs.242.800
millions arising out of completion of sales transaction of BLVL's property at
Chembur to Hindustan Petroleum Corporation Limited as reported last year, as
against a loss before tax of Rs.27.900 millions in the previous year.
Transafe Services
Limited (TSL)
TSL achieved a Turnover of Rs. 824.700 millions during
2009-10 -- (a fall of around 9% compared with the turnover of Rs. 904.300
millions in the previous year) and recorded a net loss (after tax) of Rs.
389.500 millions [as against Profit After Tax of Rs. 82.100 millions in the
previous year].
Apart from the challenging business circumstances faced
during the year consequent to the economic slowdown, which resulted in
under-utilisation of capital assets acquired by TSL in the recent years, the
severely adverse financial results of TSL for the year was on account of TSL
having to make Prior Period adjustment of Rs. 333. 000 millions in the books of
TSL to correct the irregularities and financial manipulation pertaining to the
previous three years when Shri Gopal Krishna Mukerjea (G K Mukerjea) was the
chief executive of TSL, initially as its Manager and Chief Operating Officer
and then as its Managing Director and Chief Executive Officer (MD and CEO). The
financial irregularities were detected subsequent to:- (i) an independent
investigation instituted by TSL (and carried out by the renowned firm KPMG)
into anonymous letters alleging financial misconduct and other irregularities
in TSL and (ii) the exit of the two shareholders (who together held 65% of the
equity in TSL as on March 31, 2009) represented by ICICI Venture Funds
Management Company Limited in August/September 2009. The TSL Board relieved
Shri G K Mukerjea of his responsibilities as its Managing Director and Chief
Executive Officer with effect from November 21, 2009, with the immediate
acceptance of his resignation.
Thereafter, TSL further engaged KPMG to conduct an
independent investigation into the alleged fraudulent misstatement of financial
statements and to quantify the impact of the identified misstatements. The
investigation report brings out that some senior executives of TSL, had caused
manipulation / falsification/mis statements of accounts for three years.
Criminal complaints have been filed against Shri G K Mukerjea and certain
others senior executives and officials of TSL before the Chief Metropolitan
Magistrate, Kolkata, which has led to the Kolkata Police registering FIRs
against the accused persons and investigations are underway.
During the year TSL has brought in new Internal Auditors and
new Statutory Auditors were appointed for the year 2009-10 upon the resignation
of the previous Statutory auditors. A new Chief Executive was appointed with
effect from November 21, 2009 and measures to restore the organization to good
health were initiated.
TSL is, in the meanwhile, seeking restructuring of its loan
repayment and interest payment obligations to its funding banks under the
Corporate Debt Restructuring [CDR] Scheme of the Reserve Bank of
As a measure of conservatism, your Company has provided for
its investment in TSL and is closely monitoring the developments in TSL keeping
in view its equity stake of 50% in TSL (increased from 35% as on March 31,
2009), the balance being held by Balmer Lawrie-Van Leer Limited following the
exit of the ICICI Venture Funds Management Company Limited In 2009.
Balmer Lawrie
(UAE) LLC (BLUAE)
BLUAE faced one of the toughest
and most challenging years in 2009, against the backdrop of the world-wide recession,
extremely difficult local market conditions and intense price competition in
the backdrop of the economic recession causing steep fall in demand coupled
with sharp decline in prices of raw materials. Margins on the products were
under constant pressure throughout the year.
Despite these adverse factors,
BLUAE managed to turn in satisfactory results during the year 2009. BLUAE is
also confident of facing the challenges and maintaining its leadership position
in the market. It is taking proactive steps to control and minimize wastage,
improve efficiencies, and further enhance quality and service levels.
BLUAE values its reputation as a
customer-friendly company, and focuses on fulfilling customers’ preferences, maintaining
highest standards of business ethics and in being long term reliable partners
for its customers and vendors. BLUAE continues to aim at improving its
facilities to achieve process, product and technology up-gradation.
Memorandum of
Understanding (MoU)
The Company enters into an MoU
with the Government of India, Ministry of Petroleum and Natural Gas every year
detailing therein various targets on operational, financial and efficiency
parameters besides matters like customer satisfaction, quality and human
resource development. The targets fixed are evaluated at the year-end by the
Government of India, Department of Public Enterprises (DPE). It is indeed a
matter of great pride to report that the Company has obtained the highest
rating category viz. “excellent” for the financial year 2008-09. Result of MoU
signed for the financial year 2009-10 by the Company is still to be announced
by DPE.
MANAGEMENT DISCUSSION AND ANALYSIS
Balmer Lawrie and Company Limited
is a multi-product, multi-location company engaged in both manufacturing and
service businesses striving to maximize shareholder value against a backdrop,
which required the Company to weather the impact of the global economic
slowdown that began in the financial year 2008-09 and the after-effects of
which continued into 2009-10.
Eight Strategic Business Units
(SBUs) constitute the business of the Company and these are being discussed
separately herein below:
INDUSTRIAL
PACKAGING (SBU-IP) Industry structure and developments
The Company is the largest
manufacturer of 200 litre steel drums in the Industrial Packaging segment. This
Strategic Business Unit [SBU] of the Company offers a wide product range, which
includes 165, 200 and 210 litre capacity mild steel barrels from its six
manufacturing units spread across the country.
The products are sold through the
Company's pan-India marketing network. The consumers -- who use the containers
for safe packing, transport and storage of their products -- are leading
manufacturers in the lubricating oils and greases, transformer oil,
agrochemicals, fine chemicals, paint, food products, chemicals and bitumen
segments.
Low growth rate, surplus
capacities and a large number of manufacturers leading to depressed margins
have characterized operations in the Industrial Packaging industry during
2009-10. Cold rolled steel is the main input material for the SBU, an item
which was significantly affected by the vagaries of rising input costs.
Despite the above, the SBU
continues to hold its lead position in terms of market share.
Outlook
The demand for the products of the
SBU improved considerably in the year under review and 2010-11 portends to be a
better year. The SBU expects its volume to improve and sustain its market
share.
The SBU has since commissioned (in
June 2010) its new plant at Chittoor in Andhra Pradesh, which would
substantially add to the production capacity enabling the SBU to cater to the
increasing demand.
Discussion on
Financial Performance with respect to Operational Performance
The performance of the SBU: IP
showed significant improvement compared to the previous year on account of
higher sales volume owing to increased market demand and improved contribution due
to relatively stable steel prices, efficiency improvement and cost reduction
measures.
GREASES AND LUBRICANTS (SBU - Gand L) Industry
structure and developments
The lubricant industry in
The lubricant market can be
bifurcated into industrial lubricants and automotive lubricants, with the
automotive sector representing about 65% of the total lubricant market.
Impressive growth in the core sector industries and automobile sector along
with revival of the overall economy have been instrumental in creating new
opportunities for the lubricant industry in which the SBU:G and L operates.
In the long term, the overall
prospect for the lubricant market looks positive owing to the projected growth
of the Indian economy. The lower per capita consumption of lubricants in
the reduced consumption of
lubricants arising from improvement in efficiencies, use of sophisticated
lubricants e.g. with longer drain intervals, new technological developments
etc.
Outlook
As indicated earlier, the industry
has good growth prospects linked to the country's economic growth. The SBU with
its strong R&D and other technical service capabilities, multi-locational
production facilities, focused marketing
and dedicated manpower, expects to increase its share in the industry.
Discussion on Financial Performance with respect to
Operational Performance
SBU: G and L achieved all-time
high levels of production, sales volume, turnover and profit during the year
despite the intense competition and the strategic advantages enjoyed by some of
the leading players in the industry. Some of the causative factors underlying
the impressive performance are improved production / delivery from all units of
the SBU, cost effective substitution of raw materials through R&D,
introduction of new products, close monitoring of base oil prices and timely
purchase decision, discontinuation of low margin / unremunerative business
lines etc..
LOGISTICS SERVICES (SBU – LS) Industry
Structure and Developments
A complex issue facing Logistics
Services industry in
Another relevant aspect which
needs to be considered in assessing the position of the industry is the impact
of the unprecedented global recession in 2008-09 which continued to be felt
during the first half of 2009-10. Only towards the later half, did the industry
show some signs of improvement.
SBU-LS through wide range of
logistics solutions -- covering import consolidation by air and ocean, customs
clearance, handling of project cargo through multimodal transportation,
chartering of aircrafts and vessels, express service and door-to-door services
-- is trying to cope up with the effects of the recession which has impacted
industrial / sectoral development.
Outlook
With the world economy slowly
emerging from the clutches of a widespread slowdown and with allotment of
higher funds to infrastructure sector in the national budget, the SBU expects
to perform better in the coming year(s).
As per the CRISIL Research Report,
the Indian Logistics Industry, which is currently valued at Rs.3.6 trillion, is
expected to grow at 11% CAGR [Compounded Annual Growth Rate] for the next 3
years which is definitely an encouraging prospect for all the Industry players
including SBU: LS.
TRAVEL AND
According to International Air Transport Association ( IATA
), 60,000 travel agents worldwide sell around220 billion US Dollars worth of
airline tickets on behalf of 230 member airlines. In
During 2009-10, the aviation industry and the travel trade
were very adversely impacted by the global economic downturn and austerity
measures put in place by all customers. As such there was a steep fall in both
domestic and international travel. Against the above backdrop, the following
developments took place with respect to the SBU:
- Two new
branches were opened by the SBU at
- The SBU was
awarded by the Lufthansa and Kenya Airways for its efficiency and
effectiveness in the travel business.
Although the SBU issued 4.5% more tickets in the financial
year 2009-10, the turnover showed a drop. This was largely due to the lower
average cost per air-ticket on account of intense price competition amongst
airlines and shift of passengers from the executive class to the economy class
as a consequence of the economic slowdown.
Outlook
By and large, 2009-10 was a challenging
year for the SBU. The SBU's major customers are the Government Departments,
Ministries and PSUs. This segment was adversely affected by the government
guidelines issued to bring austerity on travel expenditure. Travel by the
executive class in the domestic segment was restricted as also restrictions
placed on travel in business and first class on the International sectors. With
the economy looking up and these restrictions eased, the prospects are positive
for further development of the Company's travel business.
SBU: T and T is working with Air
would be arriving in
LOGISTICS
INFRASTRUCTURE (SBU- LI) Industry structure and development
Logistics Infrastructure comprises two activities (a)
Container Freight Stations (CFS) and (b) Warehousing and Distribution
(W&D).
CFSs operate as an extension of the Port and help
decongesting the Port. It provides facilities for storage of containers,
customs clearance, aggregation and segregation of long distance cargo,
warehousing and transportation to and from Ports. Thus the Port concentrates on
quick turnaround of containers and container ships, while storage, customs
clearance etc., are done at the CFS.
Ports are the gateway to international trade and handle over
90% of foreign trade. More than 50% of the world's sea trade is containerized.
The Indian Container traffic has been showing growth in line with the GDP and
Foreign Trade growth.
The recession in International Trade and the severe downturn
in the Shipping Industry which was seen in the second half of 2008-09 continued
during the major part of 2009-10. Consequently, there was a steep drop in
import containers during the first half of the year especially at Chennai and
Nhava Sheva. As the CFS business is inextricably linked to the shipping
industry and the EXIM trade, the month-on-month steep decline in import cargo
has severely affected the performance of the CFSs. The downturn was most
pronounced at Chennai and Mumbai, where the Company's two large CFSs are
located and as such the operations at the two CFSs were the most affected.
With a view to diversification, the SBU has been exploring
possibilities of setting up CFSs / Logistics Hubs at other locations; but a
number of ports, which till recently registered growth have shown either a flat
growth or a decline in the volume of containers handled in the year gone by.
Nevertheless, this is seen only as a temporary aberration and EXIM volumes are
likely to go up in the coming years. To cater to the growth opportunities, the
SBU has acquired additional land at Mumbai and Kolkata to expand its CFS
operations and is actively pursuing its plans to set up CFSs / Logistics Hubs
at other locations.
Warehousing and Distribution (W&D) has been a
traditional activity of the Company for a number of decades but the Kolkata
facility only handled bulk metals. With the growth in organized sector like
retail, consumer durables etc., during the last few years, the SBU has
initiated steps to set up covered warehouses. At Kolkata the availability of
covered warehousing space was doubled during the year. The overall performance
has been encouraging.
Outlook
Even though domestic growth and
the EXIM trade have shown an up-trend, the performance of the CFSs has not
shown significant improvement, primarily due to the poor financial position of
the major shipping lines, who continue to record big losses as a fallout of the
economic slowdown. As such, the pressure on margins is expected to continue in
the near term. The SBU has taken a number of initiatives to improve the overall
volume and has taken up expansion of the Kolkata CFS as well as speeding up
completion of Chennai CFS. Further, the
SBU is proceeding ahead with its
plan to set up new facilities with specific emphasis on the east and south
coast.
LEATHER CHEMICALS
(SBU – LC) Industry structure and developments
The Company's SBU-LC manufactures
and markets performance chemicals for Leather processing primarily in the form
of Fat liquors and syntans. In addition, the SBU is positioning itself to enter
into Leather Finishing Chemicals as also international construction for
Chemicals utilizing the synergy with its syntan range of products.
The declining trend of exports as
a result of the global economic meltdown witnessed in 2008-09 continued in the
first half of 2009-10 but exports picked up considerably in the second half and
has since grown at an accelerated pace to end the year at a level similar to
2008-09.
The Leather Chemicals Industry
experienced a low market growth and high competitive pressures in 2009- 10,
which were due to the adverse impact of global recession on the Leather
Industry and volatility in prices of raw materials throughout the year. Severe
pressure on the margins and bottom-lines of the SBU: LC was concomitant to
these macro-economic factors.
Outlook
The Leather Industry in
TEA (SBU – TEA)
Industry structure and developments
Tea exports from
Outlook
Japanese importers comprise the
largest overseas market for the SBU: Tea. Supply to Japan may, however, be
adversely affected on account of rising price consciousness coupled with demand
for low/no pesticide content in the tea being exported.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
(Rs. in Millions)
|
Particulars |
3 Months Ended 31.12.2010 |
Year to date figures for the current period 31.12.2010 |
|
Income |
|
|
|
a) Net Sales / Income from Operations |
4997.000 |
15089.500 |
|
Total Operating Income |
4997.000 |
15089.500 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
38.500 |
14.900 |
|
(b) Consumption of Raw Materials |
3959.400 |
11913.900 |
|
(c) Purchase of traded goods |
9.000 |
16.000 |
|
(d) Employees Cost |
327.400 |
945.700 |
|
(e) Depreciation |
30.900 |
90.200 |
|
(f) Other Expenditure |
297.600 |
1037.200 |
|
Total Expenditure |
4662.800 |
14017.900 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
334.200 |
1071.600 |
|
Other Income |
49.600 |
245.100 |
|
Profit/(Loss) before Interest and Exceptional items |
383.800 |
1316.700 |
|
Interest |
3.400 |
25.300 |
|
Profit / (Loss) after interest before Exceptional items |
380.400 |
1291.400 |
|
Exceptional Items |
-- |
-- |
|
Profit / (Loss) From
Ordinary activities before Tax |
380.400 |
1291.400 |
|
Tax Expenses |
125.800 |
423.300 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
254.600 |
868.100 |
|
Extraordinary Items |
-- |
-- |
|
Net Profit/(Loss) for the period |
254.600 |
868.100 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
162.900 |
162.900 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
-- |
|
Earning per Share
(Rs.) (Not annulised) |
|
|
|
Basic and Diluted
EPS before Extraordinary Items |
15.63 |
53.30 |
|
Basic and Diluted EPS After Extraordinary Items |
15.63 |
53.30 |
|
Public Share Holding |
|
|
|
- Number of Shares |
6221381 |
6221381 |
|
- Percentage of shareholding |
38.20% |
38.20% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
-- |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
10064700 |
10064700 |
|
- 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) |
61.80% |
61.80% |
Notes :-
- Previous period / year’s figures have
been re-grouped / re-arranged wherever necessary.
- Net Sales/Income from Operations
excludes Excise Duty.
- The above results including Segment
Reporting have been approved by the Board of Directors at its meeting held
on 14 February, 2011.
- The above results have been subjected
to limited review by the Statutory Auditors of the Company in terms of
Clause 41 of the Listing Agreement,
- The Company did not have any investor
complaint pending at the beginning and end of the Quarter. It had also not
received any investor complaint In the Quarter reported upon.
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED AS ON 31.12.2010
(Rs. in Millions)
|
Particulars |
3 Months Ended 31.12.2010 |
Year to date figures for the current period 31.12.2010 |
|
1. Segment Revenue (Net Sales/Income) |
|
|
|
a) Industrial
Packaging |
848.600 |
2941.700 |
|
b) Logistics
Infrastructure and Services |
885.000 |
2595.200 |
|
c) Travel and |
2331.900 |
6741.100 |
|
d) Greases and
Lubricants |
823.100 |
2459.300 |
|
e) Others |
149.600 |
458.700 |
|
Total |
5038.200 |
15196.000 |
|
Less : Inter
Segment Revenue |
43.600 |
115.700 |
|
Add : Other
un-allocable expenditure |
2.400 |
9.200 |
|
Net Sales/Income from Operations |
4997.000 |
15089.500 |
|
|
|
|
|
2. Segment Results [Profit/(Loss) before
tax and interest] |
|
|
|
a) Industrial
Packaging |
72.200 |
268.700 |
|
b) Logistics
Infrastructure and Services |
197.700 |
610.500 |
|
c) Travel and |
83.400 |
244.800 |
|
d) Greases and
Lubricants |
71.000 |
238.300 |
|
e) Others |
2.200 |
13.500 |
|
Total |
426.500 |
1375.800 |
|
Less : |
|
|
|
Interest |
3.400 |
25.300 |
|
Other un-allocable
expenditure (Net of un-allocable Income) |
42.700 |
59.100 |
|
Total Profit Before Tax |
380.400 |
1291.400 |
|
|
|
|
|
3. Capital Employed |
|
|
|
a) Industrial
Packaging |
879.200 |
879.200 |
|
b) Logistics
Infrastructure and Services |
380.500 |
380.500 |
|
c) Travel and |
1449.900 |
1449.900 |
|
d) Greases and
Lubricants |
861.600 |
861.600 |
|
e) Others |
2282.500 |
2282.500 |
|
Total |
5853.700 |
5853.700 |
FIXED ASSETS ;
·
Freehold and
· Buildings and Sidings
· Plant and Machinery
· Spares for Plant and Machinery
· Electrical Installation and Equipment
· Furniture and Fittings
· Typewriters
· Accounting Machines
· Office Equipment
· Tube wells, Tanks and Miscellaneous Equipment
·
Vehicles
WEBSITE DETAILS:-
Balmer Lawrie Van Leer Limited .
Balmer Lawrie-Van
Leer Limited is a joint venture between subject and Royal Packaging Industries
Van Leer NV (Van Leer Industrial Packaging – A Business of Grief Bros.
Corporation,
BLVL’s products are manufactured at their state of art, ISO 9001 certified
factories at Mahul, Mumbai and Turbhe, Navi Mumbai. The products can be broadly
divided into two segments.
(a)
Steel Drum Closures
(Manufactured at Mahul, Mumbai)
(b) Plastic Containers in sizes from 10
to 235 litre (Manufactured at Turbhe, Navi Mumbai)
Avi-Oil India Private Limited.
The lubricants
comprise a range of high performance oils, greases and specialities, mostly
synthetic, designed to meet the stringent requirements of operation over a wide
temperature range and often hostile environment.
The manufacturing
plant of AVI-OIL is located at village Piyala, in Faridabad District, Haryana,
45 KM from
Balmer Lawrie (UAE) L.L.C
Balmer Lawrie (UAE)
LLC is a joint venture company between HH Sheikh Hasher Maktoum of
The company’s manufacturing facilities are located at
Transafe Services Limited
Transafe Services
Limited (erstwhile Indian Container Leasing Company Limited) is a joint venture
between subject (29%) and ICICI Venture Capital Limited (71%). The areas of
operation of the company include:
NBFC Operations:
Operating lease of Marine Freight Containers, derivatives and other related
equipment/ service.
Logistics
Operation: Cold chain, Trailer operations, consolidation, breaks bulking, ware
housing, Depot/yard operations etc. The company has pioneered the use of
multi-axle 45 feet road containers under its brand name “Indo Trailers” for use
in the “Hub and Spoke” concept in the logistics field.
Manufacturing
Operations : Manufacture of special purpose containers.
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.44.33 |
|
|
1 |
Rs.74.13 |
|
Euro |
1 |
Rs.65.78 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--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 |
|
-- |
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.