MIRA INFORM REPORT

 

 

Report Date :

04.08.2011

 

IDENTIFICATION DETAILS

 

Name :

UNITED PHOSPHORUS LIMITED

 

 

Registered Office :

3-11, G.I.D.C, Vapi District  Valsad, Gujarat – 396195

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

02.01.1985

 

 

Com. Reg. No.:

04 – 025132

 

 

Capital Investment / Paid-up Capital :

Rs. 923.600 millions

 

 

CIN No.:

[Company Identification No.]

L24219GJ1985PLC025132

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Agrochemicals

 

 

No. of Employees :

2500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (67)

 

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 90000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having good track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal 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.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Venkat Raman

Designation :

Finance Department

Date :

02.08.2011

 

 

LOCATIONS

 

Registered Office :

3-11, G.I.D.C, Vapi District Valsad, Gujarat – 396 195, India

Tel. No.:

91-260-2400717/ 2401945/ 2401960/ 2401718/ 2401719

Fax No.:

91-260-2401823

Email :

thackerkm@uniphos.com

 

 

Corporate Office :

Uniphos House, Madhu Park Centre, Opposite Madhu Park, Chitrakar Dhurandar Marg,  Khar (West), Mumbai – 400 052, Maharashtra, India

Tel. No.:

91-22-26468000

Fax No.:

91-22-26041010

E mail:

info@uniphos.com

 

 

Administrative office :

B - 905, Vasant Vihar Tower, Dafnala, Shahibaug,, Ahmedabad - 380 004, Gujarat., india

Tel. No.:

91-79 – 22862686/ 96

Fax No.:

91-79 - 22862676

Email :

Patelra1@uniphos.com

 

 

Factory 1 :

117, G.I.D.C., Ankleshwar-393002, Gujarat, India

Tel. No.:

91-2646-251223/ 250336/ 251249/ 250279/ 250379

Fax No.:

91-2646-250297

 

 

Factory 2 :

3405/ 6, G.I.D.C, Ankleshwar-393002, Gujarat, India

Tel. No.:

91-2646-250578/ 250493/ 250563

Fax No.:

91-2646-251434

 

 

Factory 3 :

3101/2, G.I.D.C., Ankleshwar-393002, Gujarat, India

Tel. No.:

91-2646-251189/ 225174/ 224473/ 252684

Fax No.:

91-2646-250615

 

 

Factory 1 :

Located at:

v      Vapi

v      Jhagadia

v      Halol

v      Jammu

 

 

Depot :

17-18 Sunrise Estate, 17-18 Sunrise Estate, 17-18 Sunrise Estate, Sarkhej - 382 210, District. Ahmedabad, Gujarat, India

Tel. No.:

91-79- 2093391/93/26890479/80

Fax No.:

91-79- 26890480

Email :

sakhej@uniphos.com

 

 

Branch 1:

F-7,Vinayak Sankul, Opposite Bhamburkar Hospital, Opposite Bhamburkar Hospital, Tapdiya Nagar, Akola - 444 005, Maharashtra, India

Tel. No.:

91-724- 2437957/2431733/2441565

Fax No.:

91-724- 2437957

Email :

akola@uniphos.com

 

 

Branch 2:

121/7, Pune -Saswad Road, Opposite Nutan Warehousing Godown, A/P Phursungi -412308, Pune , Maharashtra, India

Tel. No.:

91-20-6989858/698967295/6344820/6355823

Fax No.:

91-20- 6344820

Email :

pune@uniphos.com

 

 

DIRECTORS

 

AS ON 31.03.2011

 

Name :

Mr. R. D. Shroff

Designation :

Chairman and Managing Director

 

 

Name :

Mrs. S. R. Shroff

Designation :

Vice Chairman

 

 

Name :

Mr. V. R. Shroff

Designation :

Executive Director

 

 

Name :

Mr. A. C. Ashar

Designation :

Director – Finance

 

 

Name :

Mr. K. Banerjee

Designation :

Whole – time Director

 

 

Name :

Mr. Pradeep Goyal

Designation :

Director

 

 

Name :

Dr. P. V. Krishna

Designation :

Director

 

 

Name :

Dr. (Mrs.) R. Ramachandran

Designation :

Director

 

 

Name :

Mr. Pradip Madhavji

Designation :

Director

 

 

Name :

Mr. Vinod Sethi

Designation :

Director

 

 

Name :

Mr. Chirayu R. Amin

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. M. B. Tridevi

Designation :

Company Secretary

 

 

Name :

Mr. J. R. Shroff

Designation :

Global CEO of the Group

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.06.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

 

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

3790879

0.82

Bodies Corporate

118813730

25.75

Sub Total

122604609

26.57

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

122604609

26.57

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

49119104

10.64

Financial Institutions / Banks

878322

0.19

Insurance Companies

27008232

5.85

Foreign Institutional Investors

167579595

36.32

Sub Total

244585253

53.01

(2) Non-Institutions

 

 

Bodies Corporate

48985473

10.62

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

30712989

6.66

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

4605267

1.00

Any Others (Specify)

9939963

2.15

Overseas Corporate Bodies

6740

--

Non Resident Indians

6517104

1.41

Foreign Corporate Bodies

3416119

0.74

Sub Total                                                                                                                                                                                                                                          

94243692

20.42

Total Public shareholding (B)

338828945

73.43

Total (A)+(B)

461433554

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

370720

-

Sub Total

370720

-

Total (A)+(B)+(C)

461804274

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Agrochemicals

 

 

Products :

ITC CODE

Product Description

 

38089210

Mancozeb

3808500

Monocrotophos

38089910

Acephate

 

PRODUCTION STATUS AS ON 31.03.2011

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

 

Speciality Chemicals

Tones

12

48

27

Chloro-Alkaline Products

Tones

106524

105402

95943

 

NM3

--

--

11364345

Industrial Chemicals

Tones

53904

41484

30210

Power

MW

48

48

2204 (Lacs KWH)

Pesticides

Tones

101164

140012

69429

Mercury Salts

Tones

100

100

--

Pesticides Intermediates

Tones

42631

34872

17101

 

Notes:

 

1.       Licensed and Installed Capacities are as certified by a Director on which the Auditors have relied, being a technical matter.

 

2.       Licensed capacity represents registered capacity with Directorate General of Technical Development (D.G.T.D.), capacity intimated to D.G.T.D. under Industrial Licensing Policy and/or capacity intimated to Secretary for Industrial Approvals.

 

3.       Production includes quantities produced for captive consumption.

 

4.       During the year, the Company has produced 1,96,85,239 Liters (Previous Year: 1,31,18,838 Liters), 3,25,15,560 Kilograms (Previous Year: 2,52,88,625 Kilograms) and 37,15,270 numbers (Previous Year: 27,68,165 numbers) of formulations out of Technical Grade Products manufactured/purchased by the Company

 

5.       Production includes 3,091 Tones (Previous Year: 3,302 Tones) produced on Job-Work basis for outside parties.

 

 

GENERAL INFORMATION

 

No. of Employees :

2500 (Approximately)

 

 

Bankers :

v      Dena Bank

v      Bank of Baroda

v      State Bank of India

v      Union Bank of India

v      Canara Bank

v      HDFC Bank Limited

v      IDBI Bank Limited

v      The Kurar Vysya Bank Limited

v      Axis Bank Limited

v      Andhra Bank

v      State Bank of Hyderabad

v      Export-Import Bank of India

v      ICICI Bank Limited

v      ING Vysya Bank Limited

 

 

Facilities :

 

Secured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Secured Redeemable Non-Convertible Debentures:

 

 

Face value of Rs.10,00,000 each fully paid up

 

 

1700 (Previous Year: 1,700) 12.20% (Previous Year : 12.20%) - 7 years

1700.000

1700.000

From Banks:

 

 

(a) On Term Loan Accounts

0.000

200.000

(b) Under Vehicle Finance Schemes

0.000

0.800

(c) On Cash Credit and Working Capital Demand Loan Accounts

0.100

1.800

(d) On Packing Credit Accounts

2302.200

0.000

From Others:

 

 

External Commercial Borrowing from International Finance Corporation

187.300

314.300

Total

4189.600

2216.900

 

Notes:

 

1.       Non convertible Debentures (NCDs) referred in 1 above are redeemable at par in three equal installments from 27.01.2014 and have a put option at the end of 3rd year i.e. 27.1.2012. These debentures are secured by way of pledge of 65,29,500 equity shares of Advanta India Limited.

 

2.       Cash Credit, Packing Credit and Working Capital Demand Loan Accounts from Banks are secured by hypothecation of present and future inventories, book debts, etc. of the Company, wherever situated.

 

 

3.       External Commercial Borrowing from International Finance Corporation amounting to Rs. 187.300 millions (Previous Year: Rs.314.300 millions) is secured by pari-passu first charge by way of hypothecation of specific movable assets, present and future, situated at Jhagadia Unit of the Company.

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Term Loans from Banks

[Repayable within 1 year : Rs 750.000 millions (Previous year : Nil)]

1750.000

1200.000

From Banks on Working Capital Loan Accounts

[Repayable within 1 year : Rs. 356.800 millions (Previous year : 808.100 millions)]

356.800

808.100

Unsecured Debentures

9850.000

3850.000

Foreign Currency Convertible Bonds

0.000

3025.900

External Commercial Borrowings from Banks

[Repayable within 1 year : Rs. 8185.000 millions (Previous year : Nil)]

8185.000

7330.300

Syndicated Notes

0.000

3063.700

Short Term Loan from others

(Repayable on demand)

65.100

0.000

Total

20206.900

19278.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. V. Ghatalia and Associates

Chartered Accountant

 

 

Associates:

·         Advanta India Limited

·         Advanta Seed International, Mauritius

·         Advanta Semilas SAIC, Argentina

·         Agrinet Solutions Limited

·         Chemisynth (Vapi) Limited

·         Kerala Enviro Infrastructure Limited

·         Pacific Seeds Pty Limited, Australia

·         Unicorn Seeds Private Limited

 

 

Subsidiaries

·         Uniphos Limited, Mauritius

·         United Phosphorus (Korea) Limited

·         United Phosphorus (Shanghai) Company Limited

·         United Phosphorus (Taiwan) Limited

·         United Phosphorus Cayman Limited

·         United Phosphorus de Mexico, S.A. de C.V.

·         United Phosphorus do Brasil Limited

·         United Phosphorus GMBH - Germany

·         United Phosphorus Holdings B.V., Netherlands

·         United Phosphorus Holdings Cooperatief U.A.

·         United Phosphorus Inc., U.S.A.

·         United Phosphorus Italy S.R.L.

·         United Phosphorus Limited Mauritius.

·         United Phosphorus Limited, Australia

·         United Phosphorus Limited, Belgium S P R L

·         United Phosphorus Limited, Colombia

·         United Phosphorus Limited, Gibraltar

·         United Phosphorus Limited, Hongkong

·         United Phosphorus Limited, Japan

·         United Phosphorus Limited, New Zealand

·         United Phosphorus Limited, U.K.

·         United Phosphorus Limited, Zambia

·         United Phosphorus Polska Sp. z o.o - Poland

·         United Phosphorus Sole Partner Limited, Greece

·         United Phosphorus Switzerland Limited.

·         United Phosphorus Vietnam Company Limited

·         UPL Investment Private Limited

·         Agri pack Zambia Limited

·         Agrindustrial, S.A., Spain

·         Agrodan, ApS

·         Anning Decco Fine Chemical Company Limited, China

·         Bio-win Corporation Limited, Mauritius

·         Canegrass LLC, USA

·         Cerexagri B.V. - Netherlands

·         Cerexagri Costa Rica, S.A.

·         Cerexagri Delaware, Inc., USA

·         Cerexagri Italia S.R.L.

·         Cerexagri S.A.S., France

·         Cerexagri Ziraat Ve Kimya Sanayi Ve Ticaret Limited Sirketi, Turkey

·         Cerexagri, Inc. (PA)

·         Citrashine (Pty) Limited, South Africa

·         Compania Espanola Industrial Quimica de Productos Agricolas Y Domesticos, S.A.U., Spain

·         Cropserve Zambia Limited

·         Decco Iberica Postcosecha, S.A.U., Spain (formerly Cerexagri Iberica)

·         Decco Italia SRL, Italy

·         Decco US Post-Harvest Inc (US)

·         Decco Worldwide Post-Harvest Holdings B.V.

·         Decco Worldwide Post-Harvest Holdings Cooperatief U.A.

·         Desarrollo Quimico Industrial, S.A., Spain

·         Eddyville Consultants Group, Inc. Panama

·         Evofarms Colombia SA

·         Evofarms S.A. - Colombia

·         Friedshelf 1114 (Pty) Limited

·         Global Chem Trade Corp., Panama

·         Icona S A - Argentina

·         Icona Sanluis S A - Argentina

·         Jiangsu Kaznam Chemical Group.,Panama

·         JSC United Phosphorus Limited, Russia

·         Phosfonia, S.L., Spain

·         Prime Agri Centre Zambia Limited

·         PT Catur Agrodaya Mandiri, Indonesia

·         PT. United Phosphorus Indonesia

·         Regentstreet B.V.

·         Reposo S.A.I.C., Argentina

·         Riceco LLC

·         Safepack Products Limited

·         Samma International S.R.L., Italy

·         Samrod Chemicals (Pty) Limited

·         Shroffs United Chemicals Limited

·         SWAL Corporation Limited

·         Transterra Invest, S. L. U., Spain

·         Universal Pestochem Limited

·         Tatva Global Environment (Deonar) Limited

 

 

Joint Ventures Companies:

·         United Phosphorus (Bangladesh) Limited.

·         Hodogaya UPL Company Limited, Japan

·         Nisso TM LLC

 

 

Enterprises over which key management personnel and their relatives have significant influence:

·         Bharuch Enviro Infrastructure Limited

·         Bloom Packaging Private Limited

·         Bloom Seal Containers Private Limited

·         Coimbatore Integrated Waste Management Company Private Limited

·         Daman Ganga Pulp and Papers Private Limited

·         Demuric Holdings Private Limited

·         Entrust Environment Limited

·         Enviro Technology Limited

·         Gabo Products Private Limited

·         Gharpure Engineering and Construction Private Limited

·         Uniphos Envirotronic Private Limited

·         Jai Research Foundation

·         Jai Trust

·         JRF Biogenomics Limited

·         Nerka Chemicals Private Limited

·         Pot Plants

·         Sanguine Holdings Private Limited

·         Tatva Global Enviroment Limited

·         Ultima Search

·         Uniphos Agro Industries Limited

·         Uniphos Enterprises Limited

·         UPL Environmental Engineers Limited

·         Vikram Farm

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

1275000000

Equity Shares

Rs.2/- each

Rs. 2550.000 Millions

14000000

Preference Shares

Rs. 100/- each

Rs. 1400.000 millions

5000000

Preference Shares

Rs. 10/- each

Rs. 50.000 millions

 

Total

 

Rs. 4000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

461804274

Equity Shares

Rs.2/- each

Rs. 923.600 Millions

 

 

 

 

 

Notes:

 

1.       Of the above:

12,73,31,215 (Previous Year: 12,73,31,215) Equity Shares of Rs.2 each fully paid-up have been allotted pursuant to a Scheme of Arrangement, without payments being received in cash.

 

21,97,81,784 (Previous Year: 21,97,81,784) Equity Shares of Rs. 2 each fully paid-up have been alloted as bonus shares by capitalisation of Securities Premium, without payments being received in cash.

 

2.       During the year, the Company has issued 2,22,40,706 (Previous Year: Nil) equity shares of Rs. 2 each fully paid-up on conversion of 654 Foreign Currency Convertible Bonds of USD 1,00,000 each

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

923.600

879.100

 879.100

2] Share Application Money

0.000

0.000

852.800

3] Reserves & Surplus

21657.200

18336.200

17297.400

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

22580.800

19215.300

19029.300

LOAN FUNDS

 

 

 

1] Secured Loans

4189.600

2216.900

4140.300

2] Unsecured Loans

20206.900

19278.000

16032.100

TOTAL BORROWING

24396.500

21494.900

20172.400

DEFERRED TAX LIABILITIES

630.700

722.300

265.500

DEFERRED PAYMENT LIABILITIES

5.100

43.900

211.700

 

 

 

 

TOTAL

47613.100

41476.400

39678.900

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8097.900

8370.500

7793.700

Capital work-in-progress

521.500

293.300

1002.800

 

 

 

 

INVESTMENT

10118.000

6878.700

3740.500

DEFERREX TAX ASSETS

0.000

0.000

0.000

INTANGIBLE ASSETS

1280.500

1357.300

1419.600

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
4090.400
2870.100

5519.100

 

Sundry Debtors
10249.500
7468.300

7269.300

 

Cash & Bank Balances
4378.200
3837.000

703.900

 

Other Current Assets
814.300
605.400

707.400

 

Loans & Advances
18862.700
17736.500

20369.000

Total Current Assets
38395.100
32517.300

34568.700

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
5864.900
5010.200

5206.300

 

Other Current Liabilities
3714.300
1746.100

2868.700

 

Provisions
1220.700
1184.400

771.400

Total Current Liabilities
10799.900

7940.700

8846.400

Net Current Assets
27595.200
24576.600

25722.300

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

47613.100

41476.400

39678.900

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

28091.400

24533.900

23273.900

 

 

Other Income from Operation

1251.600

1017.400

1099.200

 

 

Other Income

1303.800

722.100

1433.400

 

 

TOTAL                                     (A)

30646.800

26273.400

25806.500

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing and other expenses

24971.800

20681.500

22107.300

 

 

Increase/(Decrease) in Finished Goods

(510.500)

1102.400

(1140.500)

 

 

Exceptional Item

0.0000

0.000

5.000

 

 

TOTAL                                     (B)

24461.300

21783.900

20971.800

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

6185.500

4489.500

4834.700

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

2936.400

926.400

2301.400

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

3249.100

3563.100

2533.300

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1146.800

1079.100

888.900

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

2102.300

2484.000

1644.400

 

 

 

 

 

Less

TAX                                                                  (I)

527.300

671.100

167.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

1575.000

1812.900

1477.400

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

234.000

6.300

117.000

 

 

 

 

 

Add

APPROPRIATIONS

 

 

 

 

Debentures Redemption Reserve Written Bank

3044.800

440.200

0.000

 

Amount transferred from General Reserve

0.000

0.000

500.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Final Dividend on Equity Shares

926.100

879.100

659.600

 

 

Tax on Distributed Profit: On Equity Dividend

150.200

146.000

112.100

 

 

Debentures Redemption Reserve

660.500

800.300

1166.400

 

 

Transfer to General Reserve

2750.000

200.000

150.000

 

BALANCE CARRIED TO THE B/S

367.000

234.000

6.300

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods on FOB basis

14457.500

13337.500

13807.900

 

 

Interest/ Dividend

304.300

502.000

754.200

 

 

Others

1.900

75.700

57.500

 

TOTAL EARNINGS

14763.700

13915.200

14619.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Traded Goods

7303.800

4414.700

9620.300

 

 

Stores & Spares

0.000

0.000

6.400

 

 

Capital Goods

62.000

51.100

53.000

 

TOTAL IMPORTS

7365.800

4477.300

9679.700

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.52

4.12

3.36

 

QUARTERLY / SUMMARISED RESULTS

 

(Rs. In Millions)

PARTICULARS

30.06.2011

Net Sales

9018.200

Total Expenditure

7337.800

PBIDT (Excl OI)

1680.400

Other Income

470.300

Operating Profit

2150.700

Interest

514.000

Exceptional Items

0.000

PBDT

1636.700

Depreciation

288.700

Profit Before Tax

1348.000

Tax

381.100

Provisions and contingencies

0.000

Profit After Tax

966.900

Extraordinary Items

0.000

Prior Period Expenses

0.000

Other Adjustments

0.000

Net Profit

966.900

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
5.14
6.90

5.72

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
7.48
10.12

7.07

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.52
6.08

3.88

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.09
0.13

0.09

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.59
1.53

0.46

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
3.56
4.10

3.91

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS

(RS. IN MILLIONS)

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

[Includes amount due to subsidiary companies Rs. 1079.600 millions (Previous year : Rs. 553.800 millions)]

 

 

5864.900

 

 

5010.200

 

 

5206.300

 

OPERATIONAL PERFORMANCE:

 

During the year, India received very good monsoon. The La Nina effect leading to high precipitation resulted in bountiful rains throughout the country. Many crops recorded higher production this year. There was bumper harvest in both kharif and rabi seasons. Prices of most of the inputs also stabilized during the year. All these factors led to overall improvement in the economy of the country. The GDP growth was also higher.

 

Barring a few countries like Argentina, the rains were good and fairly widespread in most of the countries around the world. However, there were political upheavals and public uprising which saw end of dynasty rule in countries like Tunisia, Egypt, Libya, etc. Japan suffered national calamities like earthquake, tsunami and nuclear leaks. It led to high crude oil prices which affected the economies of all countries. Fears of inflation are looming large. Economies of some of the European nations continued to remain sluggish.

 

On the back of good monsoon, the sale of agrochemicals in India in the first half of the year were higher. However, contrary to the expectations, the sales in second half were not so encouraging. On international front, the company did very good business in Latin American market. The sales of company’s agrochemicals in these parts were high and in future also, the sales of agrochemicals in the Latin American countries will go up.

 

Total net sales for the year were higher at 28091.400 millions as against 24533.900 millions. Profit before Taxes were at 2102.300 millions as against 2484.000 millions last year.

 

FUTURE OUTLOOK:

 

For the year 2011-12, normal monsoons are predicted in India. This should result in higher sales and improved profitability. Further, economic situation in USA and many countries in Europe are showing distinct signs of recovery. This will positively affect the performance of agrochemical industry. With the population in India going up, food production has to go up which can be possible only by increased and regulated usage of agrochemicals. In the recent Union Budget, greater thrust is provided on agriculture, infrastructure and education. This will also help the Company to have better performance in the coming years.

 

FINANCE:

 

During the year, the Company has raised funds of 6000.000 millions by issue of unsecured Redeemable Non-convertible Debentures.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENT :-

 

The Company is mainly engaged in the business of agrochemicals, other industrial chemicals and chemical intermediates. It hasalso got a captive power plant in Jhagadia.

 

The agrochemical industry has several crop protection products which can be broadly divided into herbicides, insecticides, fungicides and others. Herbicides prevent or reduce weeds. They mainly replace or reduce mechanical weeding and thereby help in reducing soil erosion, water loss and providing better targeted nutrition to the plants. Insecticides are used to control insects and pests that reduce crop yields and quality. Fungicides prevent and cure fungal plant diseases which affect crop yields and quality.

 

The agrochemical market is divided into products protected by patents and products which have gone off-patent. Majority of sales of patented as well as off-patent products are dominated by multinational corporations.

 

Over the last few years, there have been many mergers and acquisitions among existing agrochemical companies. The primary reasons for the same are slow pace of new product development, growing generics penetration and increasing cost of regulatory compliance. The industry is regulated by strict and expensive registration processes in various jurisdictions and environmental and safety legislations. There are environmental laws prescribed for production, storage and handling of inputs, intermediates and agrochemicals.

 

As the new products are slow to come in the market, the success of business depends largely on distribution network of the companies. Over the years, the Company has expanded its distribution network in the international market through various subsidiaries. The Company has also acquired new products, businesses and companies to successfully integrate new products to its existing business. Within India, it has got sales depots and distributors across the country to cater to the Indian market.

 

Population has been rising everywhere. This results in higher food consumption. Farmable land is limited and hence, productivity of land has to increase. In India, agrochemical industry is set to progress very fast in the coming years. The second Green Revolution is expected. The government is concerned with the slow growth in agriculture sector. It is providing various incentives and facilities for the growth of this sector.

 

SEGMENTWISE PERFORMANCE:-

 

a)       Agrochemicals – Agrochemicals accounted for 80% of total sales of the company. Increase in market share of the company’s products mainly consists of agrochemicals.

 

b)       Industrial chemicals and intermediates – this segment accounted for 19% of total sales.

 

c)       Power – Power plant is for captive.

 

 

d)       Exports – Exports accounted for 53% of total sales.

 

BUSINESS OUTLOOK:-

 

The world economy is coming out of the downturn. Economies of USA and European countries are picking up again. This will benefit the Company significantly. In last few years, the Company’s performance had remained static on account of slackness in demand in these countries.

 

Overall business scenario for the Company is encouraging. A big advantage for the Company is that its cost of manufacture of agrochemicals in India is competitive. Further, it offers the largest range of agrochemicals. With various acquisitions, the Company has gained access to global markets and it is in a position to offer an extensive and balanced product portfolio to its customers worldwide. The Company has also strengthened its distribution reach and access to new markets by various strategic alliances with other agrochemical manufacturers of the world. The Company holds more than 1000 registrations for its products worldwide. The senior management devotes considerable time and resources in research and development for developing new products and improvement in manufacturing processes so as to enhance the quality of its products and make them more affordable. All these factors will help the Company to perform better in coming years.

 

FINANCIAL AND OPERATIONAL PERFORMANCE:-

 

During the year, turnover has gone up from 27389.800 millions to 31337.100 millions. Exports have been 14457.500 millions. At consolidated level, the sales have gone up from 52900.400 millions to 56496.900 millions. Profit before tax on consolidated basis has increased from 5987.000 millions to 6644.400 millions.

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th JUNE 2011

 

(Rs. In Millions)

Particulars

Quarter Ended

30.06.2011

(Unaudited)

 

 

1. a) Net Sales/ Income form operations

8621.300

b) Other Operating Income

396.900

Total Income

9018.200

 

 

2. Expenditure

 

a) Increase/ Decrease in Stock

(514.500)

b) Consumption of Raw Materials  

4304.100

c)  Purchase of Traded Goods

1266.500

d) Employees Cost

449.400

e) Depreciation

288.700

f) Other Expenditure

1832.300

Total

7626.500

 

 

3. Profit/ Loss form operations before other Income and Interest (1-2)

1391.700

 

 

4. Other Income

309.200

 

 

5. Profit/ Loss before Interest and Exceptional Item (3+4)

1700.900

 

 

6. Interest and other Finance Charges

352.900

 

 

7. Profit/ Loss after Interest  but before Exceptional Items (5-6)

1348.000

 

 

8. Exceptional Items

--

 

 

9. Profit/ Loss before Tax (7+8)

1348.000

 

 

10. Tax Expenses

381.100

 

 

11. Net Profit/ Loss After Tax (9-10)

966.900

 

 

12.Paid up Equity Shares Capital

923.600

 

 

13. Reserve excluding Revaluation Reserve

--

 

 

14. Earnings per share (EPS)

 

Basic and Diluted EPS and after extraordinary items for the period, for the year to date and for the previous year (not to be annualized)

 

Basic Earning per share of Rs. 2.00 each (Rs)

2.09

Diluted earning per share of Rs. 2.00 each (Rs.)

2.09

15. Public Shareholding

 

- No. of Shares

339199665

% of Shareholding

73.45%

16. Promoters and Promoter group shareholding

 

a) Pledged/ Encumbered

 

- No. of Shares

4400000

- As a % of the total shareholding of promoter and promoter group

3.59%

- As a % of the total share capital of the company

0.95%

b) Non Encumbered

 

- No. of Shares

118204609

- As a % of the total shareholding of promoter and promoter group

96.41%

- As a % of the total share capital of the company

25.60%

17. Debt Equity Ratio

1.15

18. Debt Service Coverage Ratio

2.68

19. Interest Service Coverage Ratio

4.82

 

Notes:

 

1.       The Unaudited Standalone Financial Results were viewed by the Audit Committee and there after approved at the meeting of the Board of Director sheld 29th July, 2011 and the same has been subjected to a Limited Review by the Statutory Auditors of the Company.

 

2.       In July 2011, the Company has, through its subsidiaries, acquired 51% stake in DVA Agro Do Brazil from DVA Group, Germany and other shareholders. DVA Agro Do Brazilis engaged in the production, marketing, selling and distribution of crop protection products and specialties in the Brazilian agrochemicals market.

 

3.       The Board of Directors in its meeting held on 25th May, 2011 have considered and approved the merger of its overseas subsidiary United Phosphorus Limited (Mauritius) with itself from the appointed date viz. July1, 2011. The scheme is subject to and conditional upon the receipt of requisite approvals which are in progress.

 

4.       Ratios have been computed as follows :-

Debt comprises Long-Term and Short-Term borrowings

Debts Service Coverage Ratio = Earnings before Interest, Tax, Depreciation and Amortisation /(Interest on Debt + Principal repayments)

Interest Service Coverage Ratio =Earnings before Interest and Tax/Interest and Other Finance Charges

 

5.       During the quarter, Interest and Other Finance Charges includes net exchange gain of Rs 161.100 millions arising on foreign currency loans/ advances and related derivatives. The amount for the previous quarter included an exchange loss of Rs 713.500 millions.

 

6.       The details of investors complaints (as informed by Share pro Services, Registrarand Transfer Agent of the Company): There were no investors complaints pending at the beginning of the quarter. The Company has received 48 complaints from the investors during the quarter and resolved 48 complaints during the quarter. There were no complaints lying unresolved at the end of the quarter.

 

7.       Previous periods/ years figures have been regrouped/ rearranged wherever necessary.

 

FIXED ASSETS:

 

·         Land-Freehold

·         Land-Leasehold

·         Leasehold Improvement Asset

·         Buildings

·         Plant and Machinery

·         Laboratory Equipments

·         Furniture, Fixtures and Equipments

·         Vehicles

·         Temporary Structures

 

WEB SITE DETAILS

 

PROFILE

 

subject is an India-based company engaged in the business of agrochemicals, industrial chemicals, chemical intermediates and specialty chemicals. The Company operates in three segments: agro chemical, industrial chemicals and others. The agro chemicals segment consists of agrochemicals technical’s and formulations. The industrial chemicals segment consists of industrial chemicals and speciality chemicals. The others segment consists of traded products. The Company’s subsidiaries include United Phosphorus Limited, U.K., United Phosphorus Limited, Hong Kong, United Phosphorus Inc. USA, United Phosphorus Inc. USA/Cerexagi Inc (PA), Evafarms SA-Columbia, United Phosphorus Limited, Cloumbia and United Phosphorus Limited, Australia. For the nine months ended 31 December 2010, United Phosphorus Limited's revenues increased 1% to RS40.16B. Net income increased less than 1% to RS3.41B. Revenues reflect an increase in other income from operation and higher other income. Net income was partially offset by an increase in employee costs, higher other expenses, an increase in interest & finance cost and a rise in minority interest.

 

MANAGEMENT

 

SANDRA R. SHROFF - NON-EXECUTIVE VICE CHAIRMAN OF THE BOARD

 

Mrs. Sandra R. Shroff is Non-Executive Vice Chairman of the Board of United Phosphorus Limited She is the Director of the Company since 1st October, 1992. She has been associated with Uniphos Enterprises Limited (erstwhile United Phosphorus Limited) since its inception. She has held various important positions in commercial, educational and social fields. She is on the Board of Uniphos Enterprises Limited, Uniphos Agro Industries Limited, Enviro Technology Limited, Nivi Trading Limited, Shroff United Chemicals Limited, Bharuch Enviro Infrastructure Limited, Vapi Waste and Effluent Management Company Limited, Ventura Guaranty Limited and UPL Environmental Engineers Limited.

 

CHIRAYU R. AMIN - INDEPENDENT NON-EXECUTIVE DIRECTOR

 

Mr. Chirayu R. Amin is Independent Non-Executive Director of United Phosphorus Limited. He is a Science graduate and Master in Business Administration. Presently, he is the Chairman and Managing Director of Alembic Limited. He represented the industry in various associations and federations such as FICCI, International Chambers of Commerce, Federation of Gujarat Industries etc. He is keenly interested in sports and presently he is the Vice-President of Cricket Control Board of India. He has many years of experience in business. He is also Chairman of Alembic Glass Industries Ltd. and Paushak Limited. He is also on the Board of Alembic Exports Limited, AGI Developers Limited and Elecon Engineering Company Limited.

 

A. C. ASHAR - DIRECTOR - FINANCE, WHOLE-TIME DIRECTOR

 

Mr. Arun C. Ashar is Director - Finance, Whole-time Director of United Phosphorus Limited since March, 1993. He is a Chartered Accountant. He was associated with the group in the capacity of consultant prior to his joining of the Board. He Iooks after the financial functions of the Company and has been instrumental in raising finance for various projects of the Company. He is. on the Board of Uniphos Enterprises Limited , Enviro Technology Limited, Bharuch Enviro Infrastructure Limited, Agrinet Solutions Limited, SWAL Corporation Limited, Shroff United Chemicals Limited, Search Enviro Limited, Djai Power Limited, Shivalik Solid Waste Management Limited , and Associated Environmental Engineers Limited .

 

KALYAN M. BANERJEE - WHOLE TIME DIRECTOR

 

Mr. Kalyan M. Banerjee is Whole Time Director of the United Phosphorus Ltd since 21 October, 2003. He is a Chemical Engineer. He has been associated with the Uniphos Enterprises Limited (erstwhile United Phosphorus Limited) since its, inception. He has held various important positions in commercial, educational and social fields. He has been the Director of Rotary International and is activeFy associated with all the Rotary projects. He is also associated with various education institutions at Vapi. Mr. Banerjee is on the Board of Uniphos Agro Industries Limited.

 

PRADEEP V. GOYAL - INDEPENDENT NON-EXECUTIVE DIRECTOR

 

Mr. Pradeep Goyal is Independent Non-Executive Director of United Phosphorus Limited since 31 January, 2002. He is a Metallurgy Engineer from IIT and Master Graduate from MIT, USA. He has been the member of various associations such as All India Manufacturers Organisation, ASSOCHAM, Indo-German Chambers of Commerce, etc. He has authored a few articles relating to steel making. He is the Managing Director of Pradeep Metals Limited. He is also on the Board of Uniphos Enterprises Limited, Hind Rectifiers Limited, Entegra Limited and Jankalyan Sahakari Bank Limited.

 

Education

SM Materials Science, Massachusetts Institute of Technology

B Technology, Indian Institute of Technology, Kanpur

 

P. V. KRISHNA – INDEPENDENT NON-EXECUTIVE DIRECTOR

 

Dr. P. V. Krishna is Independent Non-Executive Director of United Phosphorus Limited since 31 January, 2002. He is a member of the Audit Committee, Shareholders/Investors Grievance Committee and Remuneration Committee. He is Ph. D. (Tech.). He is a Chemical technologist with specialization in chemicals and petrochemicals. He has over 40 years experience in Research and Development and industry and held various positions in Government of Gujarat and Government of India. He is presently a Project Consultant for Chemicals, Petro Chemicals, Safety Management and Environment Planning. He has got an excellent technical background. He is also a Director on the Board of Suvikas People Co-operative Bank Limited.

 

 

PRADIP MADHAVJI - INDEPENDENT NON-EXECUTIVE DIRECTOR

 

Mr. Pradip Madhavji is Independent Non-Executive Director of United Phosphorus Limited since 29th January, 2004. Mr. Madhayji is B.A., B.Com. arjd L.L.B. Mr. Madhavji has more than 43 years of experience in the fields of finance and administration. Formerly he was chief of Thomas Cook India Limited. Prior to joining Thomas Cook, He was in Dena Bank for 1. years. Presently Mr. Madhavji is on the Board of Standard Chartered Asset Management Company Private Limited, Kishco Cutlery Limited. and Travel Corporation of India. Apart from this, he is Hon. Consul of New Zeland and also holds positions in various trade bodies.

 

REENA RAMACHANDRAN - INDEPENDENT NON-EXECUTIVE DIRECTOR

 

Dr. Rena Ramachandran is Independent Non-Executive Director of United Phosphorus Limited since 21 October, 2003. She is the Director General of j. K. Business School, running a UGC recognised management programme. Presently, she is a member of the HR Advisory Committe of Reserve Bank of India. She has been member of various associations and institutions relating to education. She was also associated with various committees appointed by various Ministries of Government of India. She has done her Doctorate in Chemistry from University of Allahabad and Doctorate in Science (chemistry) in France. She has varied professional experience of over 34 years in Textile, Drug, Cement, Petroleum and Petro Chemical Industry.

 

Education

 

DS Chemistry, Allahabad University

 

VINOD R. SETHI - INDEPENDENT NON-EXECUTIVE DIRECTOR

 

Mr. Vinod R. Sethi is Independent Non-Executive Director of Board of United Phosphorus Limited. He is a Chemical Engineer from IIT, Mumbai and Master in Business Administration from IIM, Ahmedabad. Presently, he runs his own private investment bank. He was previously with Morgan Stanley. He has many years of experience in the field of finance. He is Chairman of K C P Sugar Mills Limited and is also on the Board of Subex Systems Limited, Geodesic Information Systems - Limited, GTL Limited. and Axsys TechnolOgy Limited.

 

Education

 

MBA Finance, New York University

B , Indian Institute of Technology, Mumbai

 

VIKRAM RAJNIKANT SHROFF - EXECUTIVE DIRECTOR

 

Mr. Vikram R. Shroff is Executive Director of United Phosphorus Limited. He is Science graduate from University of Mumbai. He has been associated with the group since 1997. He looks after HR functions, Purchase, Commercial, Marketing (IocI), production departments and SAP implementation in the organization. He is on the Board of Bharuch Enviro Infrastructure Limited and Agrinet Solutions Limited.

 

Education

 

Chemistry, University of Mumbai

Harvard University

 

JAIDEV R. SHROFF - GLOBAL CEO OF THE GROUP, DIRECTOR

 

Mr. Jaidev R. Shroff is Global CEO of the Group, Director of United Phosphorus Limited. He is the Director of the Company since 1st October, 1992 and is a science graduate. He has worked with the Group for more than 18 years. He has substantial experience in various areas of the Group operations. He is also a Director on the Board of various other public limited companies, viz. Uniphos Enterprises Limited, Enviro Technology Limited, Nivi Trading Limited, Ventura Guaranty Limited, Advanta India Limited, Bharuch Enviro Infrastructure Limited, Tatva Global Environment Limited, Tatva Global Environment (Deonar) Limited, Shivalik Solid Waste Management Limited, UPL Environmental Engineers Limited, Nirlon Limited, Latur Water Supply Management Company Limited, Sharvak Environment Ltd. and Entrust Environment Limited.

 

NEWS

 

PRESS RELEASE

 

UNITED PHOSPHORUS LIMITED ACQUIRES MAJORITY STAKE IN DVA AGRO BRAZIL

Jul 26, 2011

 

United Phosphorus Limited announced that it has acquired a 51% stake in DVA Agro Do Brasil (DVA Agro Brazil), a Brazilian company, from DVA Group, Germany and other shareholders. The balance 49% will continue to be held by the existing shareholders. DVA Agro Brazil based out of Campinas, Sao Paulo state in Brazil is engaged in the production, marketing, selling and distribution of crop protection products and specialties in the Brazilian agrochemicals market. UPL's acquisition of 51% will be against an immediate cash outlay of around USD150 million which will be accomplished through primary infusion of funds in DVA Agro Brazil and secondary purchase of share from the existing shareholders.

 

 

UNITED PHOSPHORUS LIMITED ANNOUNCES MERGER WITH UNITED PHOSPHOROUS LIMITED (MAURITIUS)

May 25, 2011

 

United Phosphorus Limited announced that the Board of Directors considered the merger of Company's overseas subsidiary United Phosphorous Limited (Mauritius) into itself. The Scheme is subject to and conditional upon the requisite approvals being / to be received thereof, including the approval of the shareholders , sanction of the Hon'ble High Court of Gujarat at Ahmedabad, pursuant to the provisions of sanction 391 to 394 of the Companies Act, 1956 and other applicable provisions, and, stock exchanges, filing of certified / authenticated copy of the order of Hon'ble Gujarat High Court with Registrar of Companies at Ahmadabad and at Mauritius, and all statutory and regulatory authorities, as applicable, for implementation of the Scheme.

 

 

UNITED PHOSPHORUS LIMITED TO CONSIDER MERGER WITH OVERSEAS SUBSIDIARY

May 23, 2011

 

United Phosphorus Limited announced that a meeting of the Board of Directors of the Company will be held on May 25, 2011, inter alia, to consider and if thought fit, approve merger of its overseas subsidiary with itself.

 

 

UNITED PHOSPHORUS LIMITED RECOMMENDS DIVIDEND

Apr 29, 2011

 

United Phosphorus Limited announced that the Board of Directors of the Company at its meeting held on April 29, 2011, inter alia, has recommended dividend at 100% on the equity shares of INR2 each (that is INR2 per equity share).

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 44.37

UK Pound

1

Rs.72.20

Euro

1

Rs. 62.87

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

67

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

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

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.