MIRA
INFORM REPORT
|
Report Date : |
06.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
ZUARI INDUSTRIES LIMITED |
|
|
|
|
Registered Office : |
Jai Kisaan Bhawan, Zuari Nagar, |
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Country : |
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|
|
|
Financials (as on) : |
31.03.2010 |
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|
|
Date of Incorporation : |
12.05.1967 |
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Com. Reg. No.: |
24 - 000157 |
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|
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|
Capital
Investment / Paid-up Capital : |
Rs.294.406 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L65921GA1967PLC000157 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BLRZ00130E |
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|
|
Legal Form : |
Public Limited Liability company. The company’s shares are listed on the stock exchanges. |
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|
|
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Line of Business : |
Manufacturers and Importer of Complex Fertilizers and Agricultural Inputs |
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|
|
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No. of Employees
: |
1200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 42700000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered normal for business 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 |
INFORMATION PARTED BY
|
Name : |
Mr. Patil |
|
Designation : |
Finance Head |
|
Contact No.: |
91-832-2592180 |
LOCATIONS
|
Registered Office/ Factory 1 : |
Jai Kisaan Bhawan, Zuarinagar, Goa – 403 726, |
|
Tel. No.: |
91-832-2592180 91-834-2592431/2513815/2555571 – 575 / 2592180 |
|
Fax No.: |
91-832-2555462 91-834-2555179/2512231/ 2555462 |
|
E-Mail : |
investor_redressal@zuari.co.in |
|
Website : |
|
|
Area : |
10000 sq.ft |
|
Location : |
Owned |
|
|
|
|
Factory : |
Furniture G-106,
SIDCO Industrial Estate, Kakkalur, Dist. Tiruvallur – 602 003, Tamilnadu |
DIRECTORS
As on : 31.03.2010
|
Name : |
Mr. Saroj Kumar Poddar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. H.S. Bawa |
|
Designation : |
Managing Directors |
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|
Name : |
Mr. Shyam Bhartia |
|
Designation : |
Director |
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|
Name : |
Mr. Arun Duggal |
|
Designation : |
Director |
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|
Name : |
Mr. D. B. Engineer |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. J.N. Godbole |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. M. D. Locke |
|
Designation : |
Alternate – K.H. Captain |
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|
Name : |
Mr. Marco Wadia |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R. Y. Patil |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. L. M.
Chandrasekaran |
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Designation : |
Vice President |
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|
Name : |
Mr. Naveen Kapoor |
|
Designation : |
Vice President |
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|
Name : |
Mr. Binayak Datta |
|
Designation : |
Vice President |
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|
Name : |
Mr. D. P. Sinha |
|
Designation : |
Vice President |
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|
|
|
Name : |
Mr. Suresh
Krishnan |
|
Designation : |
Executive
President |
|
|
|
|
Name : |
Crawford Bayley and Company, Mumbai Khaitan and Company, Kolkata |
|
Designation : |
Legal Advisers |
|
|
|
|
Name : |
Mr. Patil |
|
Designation : |
Finance Head |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
181,027 |
0.61 |
|
|
9,458,596 |
32.13 |
|
|
9,639,623 |
32.74 |
|
|
|
|
|
|
479,750 |
1.63 |
|
|
479,750 |
1.63 |
|
Total shareholding of Promoter and Promoter Group (A) |
10,119,373 |
34.37 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3890254 |
13.21 |
|
|
4740 |
0.02 |
|
|
2436553 |
8.28 |
|
|
2355030 |
8.00 |
|
|
217 |
-- |
|
|
217 |
-- |
|
|
8686794 |
29.51 |
|
|
|
|
|
|
934642 |
3.17 |
|
|
|
|
|
|
2536296 |
8.61 |
|
|
7163499 |
24.33 |
|
|
89672 |
0.30 |
|
|
59900 |
0.20 |
|
|
7012450 |
23.82 |
|
|
1477 |
0.01 |
|
|
10634437 |
36.12 |
|
Total Public shareholding (B) |
19,321,231 |
65.63 |
|
Total (A)+(B) |
29,440,604 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
29,440,604 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Any OtherBUSINESS DETAILS
|
Line of Business : |
Manufacturers and Importer of Complex Fertilizers and Agricultural Inputs |
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Products : |
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
Cash |
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Purchasing : |
Cash |
PRODUCTION STATUS
|
Particulars |
|
YEAR ENDED 31.03.2010 (Tonnes) |
|
Quantitative
information in respect of goods manufactured and Sold: |
|
|
|
i) Licensed
Capacity |
|
NA |
|
ii) Installed
capacity (as certified by the Managing Director and
relied on by the auditors, this being a technical matter): Ammonia (as
reassessed by FICC)
per day urea (as
reassessed by FICC) per day |
|
708 1210 |
|
Compound
fertilizers of the Grades: N.P.K. Plant A Various Grades of
Phosphatic Fertilisers per day N.P.K. Plant B Various Grades of
Phosphatic Fertilisers
per day Argon(SM3)
SM3 Per day |
|
1100 1100 6600 |
|
iii) Production: Ammonia (for
Capative consumption ) Urea Compound
fertilizers of the grades: 19:19:19 18:46:0 10:26:26 12:32:36 20:20:0 |
|
226689 337825* -- 351990 209122 134905 22653 |
|
Pesticides (on
job basis from outside parties) Ltr
Kgs |
|
1983603 3982517 |
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|
|
|
* Production of urea
is recovered on the basis of standard ration based on ammania consumed for
manufacture of Ureo
Note : The above figures of
production include/ are net of the following quantities Found as net excesses /
(Shortages) on physical verification.
GENERAL INFORMATION
|
Customers : |
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No. of Employees : |
1200 (Approximately) |
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Bankers : |
v
State Bank of v HDFC Bank Limited v Corporation Bank v Canara Bank v Allahabad Bank Limited v IDBI Bank v ICICI Bank |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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|
Name : |
S. R. Batliboi and Company Chartered Accountant |
|
Address : |
Gurgaon, |
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|
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Memberships : |
Confederation of Indian Industry |
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Associates: |
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Subsidiaries : |
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Joint Ventures of the Company : |
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Wholly Owned Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
|
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|||
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No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
|
|
35,750,000 |
Equity Shares |
Rs.10/- each |
Rs. 357.500 Millions |
|
|
10,000,000 |
Redeemable Cumulative Preference
Shares |
Rs. 100/- each |
Rs. 1000.000 Millions |
|
|
|
Total |
|
Rs.1357.500 Millions |
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29,451,168 |
Equity Shares |
Rs.10/- each |
Rs.294.512 Millions |
|
|
|
|
|
Subscribed and Paid Up :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29,440,604 |
Equity Shares |
Rs.10/- each |
Rs.294.406 Millions |
|
|
Add: Forfeited Shares (Equity Share) |
|
Rs. 0.005
Million |
|
|
Total |
|
Rs. 294.411
Millions |
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 |
294.411 |
294.411 |
294.411 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10394.219 |
8979.607 |
8150.094 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10688.630 |
9274.018 |
8444.505 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6027.891 |
2322.856 |
4291.806 |
|
|
2] Unsecured Loans |
4797.427 |
874.660 |
4077.765 |
|
|
TOTAL BORROWING |
10825.318 |
3197.516 |
8369.571 |
|
|
DEFERRED TAX LIABILITIES |
1.290 |
176.804 |
226.198 |
|
|
|
|
|
|
|
|
TOTAL |
21515.238 |
12648.338 |
17040.274 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1634.085 |
1593.598 |
1681.137 |
|
|
Capital work-in-progress |
264.803 |
102.222 |
20.904 |
|
|
|
|
|
|
|
|
INVESTMENT |
10465.274 |
7194.219 |
6395.599 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3786.987
|
5345.166
|
3595.701 |
|
|
Sundry Debtors |
6182.842
|
10798.415
|
4899.977 |
|
|
Cash & Bank Balances |
569.236
|
3189.675
|
1198.105 |
|
|
Other Current Assets |
4070.156
|
4732.959
|
3059.572 |
|
|
Loans & Advances |
1302.503
|
2263.908
|
1516.894 |
|
Total
Current Assets |
15911.724
|
26330.123
|
14270.249 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3943.269
|
6174.652
|
|
|
|
Current Liabilities |
2297.323
|
16065.584
|
5028.406 |
|
|
Provisions |
520.056
|
331.588
|
299.209 |
|
Total
Current Liabilities |
6760.648
|
22571.824
|
5327.615 |
|
|
Net Current Assets |
9151.076
|
3758.299
|
8942.634 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21515.238 |
12648.338 |
17040.274 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
42775.455 |
60905.994 |
26179.442 |
|
|
|
Other Income |
1027.121 |
946.419 |
512.516 |
|
|
|
TOTAL (A) |
43802.576 |
61852.413 |
26691.958 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
25932.133 |
37595.339 |
21211.580 |
|
|
|
Purchases of finished goods for resale |
13753.552 |
23550.414 |
3608.675 |
|
|
|
Increase/ (Decrease) in finished goods |
1553.323 |
(1331.638) |
(16.890) |
|
|
|
Miscellaneous Expenses written off |
0.000 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
41239.008 |
59814.115 |
24803.365 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2563.568 |
2038.298 |
1888.593 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
172.117 |
606.564 |
567.622 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2391.451 |
1431.734 |
1320.971 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
195.076 |
177.512 |
172.783 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2196.375 |
1254.222 |
1148.188 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
626.765 |
321.377 |
414.075 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1569.610 |
932.845 |
734.113 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5306.795 |
4977.282 |
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
500.000 |
500.000 |
NA |
|
|
|
Proposed Dividend on equity shares |
132.483 |
88.322 |
|
|
|
|
Corporate Dividend Tax Thereon |
22.515 |
15.010 |
|
|
|
BALANCE CARRIED
TO THE B/S |
6221.407 |
5306.795 |
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
11427.376 |
20342.909 |
7608.887 |
|
|
|
Spare Parts |
23.889 |
12.462 |
13.434 |
|
|
|
Capital Goods |
39.467 |
1.800 |
6.639 |
|
|
|
Traded Goods |
11957.508 |
19722.590 |
2765.959 |
|
|
TOTAL IMPORTS |
23448.240 |
40079.761 |
10394.919 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
53.31 |
31.69 |
24.93 |
|
|
|
- Diluted |
53.31 |
31.69 |
24.93 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 (1ST
Quarter) |
30.09.2010 (2ND
Quarter) |
31.12.2010 (3rd Quarter) |
31.03.2011 (4th
Quarter) |
|
Net Sales |
9517.400 |
20969.800 |
15318.800 |
9813.800 |
|
Total Expenditure |
9070.600 |
19907.900 |
14708.500 |
9350.000 |
|
PBIDT (Excl OI) |
446.800 |
1061.900 |
610.300 |
463.800 |
|
Other Income |
76.300 |
185.900 |
74.200 |
71.800 |
|
Operating Profit |
523.100 |
1247.800 |
684.500 |
535.600 |
|
Interest |
77.200 |
50.400 |
85.900 |
169.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
445.900 |
1197.400 |
598.600 |
365.900 |
|
Depreciation |
53.100 |
53.000 |
53.600 |
53.600 |
|
Profit Before Tax |
392.800 |
1144.400 |
545.000 |
312.300 |
|
Tax |
114.700 |
330.800 |
179.300 |
100.900 |
|
Profit After Tax |
278.100 |
813.600 |
365.700 |
211.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
278.100 |
813.600 |
365.700 |
211.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.58
|
1.51
|
2.72 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.13
|
2.06
|
4.39 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.51
|
15.83
|
7.20 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.14
|
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.64
|
2.79
|
0.63 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.35
|
1.17
|
2.68 |
LOCAL AGENCY FURTHER INFORMATION
Nature of Operations:
The Company is the manufacturer of chemical fertilizers and pesticides. The Company is also into trading business of complex fertilizers, seeds and pesticides.
The Details of sundry creditors
Rs. In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
Total outstanding dues of micro enterprises
and small enterprises |
0.390 |
0.040 |
NA |
|
Total outstanding dues of creditors other
than micro enterprises and small enterprises |
3942.879 |
6174.612 |
NA |
|
Total |
3943.269 |
6174.652 |
NA |
Note:
With reference to the earlier announcement dated 15.04.2011,
regarding the decision of its Board of Directors to withdraw the scheme of
amalgamation ('Scheme') of Gobind Sugar Mills Ltd ('GSML') with and into the
Company from the Hon'ble High Court of Bombay at Goa, Zuari Industries Limited
has now informed BSE that the Company has been informed by its advocate on
record in Goa that the Company's application for withdrawal of the Scheme has
been allowed by the Hon'ble High Court and an order to that effect has been
passed by the Hon'ble High Court on 15.04.2011. The Company is still to receive
a formal copy of the order of the Hon'ble High Court of Bombay at
MANAGEMENT DISCUSSION AND ANALYSIS
The business analysis and outlook for Zuari Industries Limited (ZIL)
based on the current Government policies and market conditions. The Company's business
is manufacture and sale of fertilizers and trading in agri inputs including
pesticides.
The Global Economic Backdrop:
The acute phase of the financial crisis which threw the Global Economy
into a turmoil has passed and a global economic recovery is being felt. However
the recovery will expectedly be slow in the second half of 2010 as the growth
impact of fiscal and monetary measures wane and the fiscal stimuli are
progressively withdrawn. Employment growth will remain weak and unemployment is
expected to remain high for many years. The overall strength of the recovery
and its durability will depend on the extent to which household and business
sector demand strengthens over the next few quarters. While the baseline
scenario projects that global growth will firm to 2.7 percent in 201 0 and 3.2
percent in 201 1 after a 2.2 percent decline in 2009, neither a double dip
scenario, where growth slows appreciably in 201 1, or a stronger recovery can
be ruled out.
Financial markets have stabilized and are recovering, but remain weak.
Inter bank liquidity as measured by the difference between the interest rates
commercial banks charge one another and what they have to pay to central
bankers have declined from an unprecedented peak of 366 basis points in dollar
markets to less than 15 basis points a level close to its "normal"
pre crisis range. Currencies, which fell worldwide against the U.S. dollar in
the immediate aftermath of the crisis, have largely recovered their pre crisis
levels and international capital flows to developing countries have recovered
with a rapid run up during the last months of 2009. Also, borrowing costs for
emerging market borrowers have stabilized over the last few quarters, but
remain elevated. However, the, Dubai World event and ripple effects to
credit-downgrades for Greece and Mexico can be expected to raise concerns about
sovereign debt sustainability and will impact risk assessments, capital flows,
and financial markets in 2010. The real economy is recovering as well. Although
global industrial production in October 2009 remained 5 percent below its level
a year earlier, it is recovering, with output in both high income and
developing countries expanding at more than a 1 2 percent annualized rate (or
scar) in the third quarter of 2009. Just as a sharp drop in inventories
contributed to a precipitous initial decline in industrial production, the
stabilization of inventory levels has contributed to a strong rebound in
production, and this factor is expected to support industrial production, even
as growth rates start to come down. Trade too is recovering but remains
depressed: Quarterly growth rates have moved into positive territory in recent
months, but the U.S. dollar value of trade was still off 1 7 percent from its
September 2009 level. Lower commodity prices mean that the volume of trade has
fared better, but it is nevertheless down by 3 percent from a year ago. The
combination of the abrupt fall in commodity prices and ample spare capacity
world wide has resulted in median inflation in developing countries falling
from more than 10 percent in August 2008 to about 1.0 percent in October 2009.
Although the real side effects of the crisis have been large and serious,
economic activity in most developing countries is recovering and overall growth
is expected to pick up from the anemic performance of 1.2 percent in 2009 to
5.2 percent in 2010 and to 5.8 percent in 201 1 (table 1.1). Although much
lower than the 6.9 percent growth rate that developing countries averaged
between 2003 and 2008, these rates are well above the 3.3 percent average
performance during the 1 990s. Excluding
1. Potential output is the level of output commensurate with the level
of production when all factors of production, i.e, labour, capital and
technology are fully employed.
2. Total revenues in International Development Association countries is
estimated (based on International Monetary Fund 2009) to have fallen from an
average of 26.2 percent of GDP over the 2000-08 period to 21.9 percent of GDP
in 2009. This 4.3 percent (as a share of GDP) decline in revenues is equivalent
to nearly $35 billion. When 2009 revenues are compared to the year before (when
total revenues were equivalent to 28.1 percent of GDP), the fall in revenue is
equivalent to nearly $50 billion.
The World Agriculture and Food Scenario:
Although agricultural prices have declined by 22 percent since their
peak in June 2008, they nevertheless remain almost twice os high as the lows
reached in the early 2000s. The recent fall in agricultural prices (relative to
pevious peaks) reflects lower oil prices a key cost component and larger stockpiles
of key agricultural commodities, including rice, maize, and wheat, resulting
from favorable harvests and area expansion of key agricultural commodities.
Barring unforeseen production problems, agricultural markets are likely to
remain well supplied. As a result agricultural prices are projected to decline
by 1 3.8 percent in 2009, compared with 2008. Over the medium- to longer terms,
agricultural prices are expected to remain broadly stable in real terms,
reflecting two opposing forces. On the one hand, a stronger link between energy
and agricultural prices (higher costs of production plus demand for biofuel)
will exert upward pressure on prices; on the other hand, continued gains in
total productivity (which tends to be stronger in agriculture than in
manufacturing) should constrain production costs. Short-term food security
concerns have subsided, and most countries have reduced or eliminated the
export bans and other export restrictions that were put in place during the
commodity price spike of 2008. However, the poverty challenges posed by higher
food prices remain. Over the longer term, productivity gains at the global
level should ensure long term food supply. However, advances in agricultural
productivity in many poor countries is not keeping pace with population growth.
As a result, there is a rising risk of increasing dependence on imported food
to meet basic needs. Over the medium term, real commodity prices are projected
to remain relatively stable, with upside and downside risks more or less in
balance. Recent price rises reflect dollar weakness and some overshooting
associated with the slowdown in global economic activity. Long term there is
some concern that non-industrial commodities may become more procyclical and
volatile than in the past. If the influence of financial investors in commodity
markets rises, then the procyclical nature of their activity could raise
volatility in affected markets. Similarly, the use of agricultural products as
an alternative fuel source may introduce an element of cyclically into some
food prices that was not previously there. According to recent World Bank
estimates non oil commodity prices are set to remain stable with a mild
increase of 0.7%. There is a prediction of a mild increase in Oii Prices to US$76.6
up from US$76. There is a prediction of rising interest rates. The Perspectives
therefore are of a cautious optimism.
The
Viewed in this perspective, the Indian economy grew at a healthy rate of
7.2% According to the advance estimates released by Central Statistical
Organisation (CSO), the real growth was placed at 7.9% during the Second
Quarter of 2009-10 as compared with 7.5% during the corresponding quarter of
the previous financial year. However it is a matter of grave concern that
Agriculture recorded a degrowth of (-)0.2% annuated. The Sub Normal monsoons
played their roles on the Kharif Crops. The production of food grains came to
98.8million tones as against the 4lh advance estimates of 125.5 million tones.
Similarly there were declines of around 1 7% in Cereals. There are lower than
targeted production of around 27% in Sugar cane and 9% in Cotton. In terms of
acreage the Kharif Acreage declined by around 6.5%. However what was lost in
Kharif was partially made good by a highly positive Rabi. Significant
improvements are still required in the pace of growth in Agriculture and the
per capita annual production of cereals.
The Outlooks:
The latest predictions from analysts are GDP will grow by 7.1 per cent
in fiscal 2009-1 0, and the growth is projected to accelerate to 9,2 per cent
in 2010-1 1. Both industry and agriculture are expected to contribute in good
measure to this growth. In 2009-10, rabi foodgrain production is estimated to
touch an all time high of 1 1 7.5 million tonnes, in spite of a marginal
decline in acreage. Favourable climatic conditions will contribute
significantly to this growth. Prospects for agricultural crop production appear
bright in 201 0-11. Production of major crops projected to surge by 1 0.8 per
cent in fiscal 201 0- 1 1, as acreage and yield are both expected to rise. Food
grain output is expected to grow by 9.5 per cent and non food grain output by
12.4 per cent. The performance of the Fertilizer Industry was generally good
and payouts in terms of settlement of Subsidy Bills were very positive. The
Government had provided for Subsidies in its Original Budgets for around Rs
500.000 millions. Through supplementaries the total amounts of payouts amounted
to Rs 630.000 millions
The New Policy
Initiatives:
The Government announced the New Nutrient Based Reimbursement Scheme for
Phosphatic and Pottasic Fertilisers. The new policy takes effect on I5' April
2010. The Government has now fixed a per nutrient price: This price takes into account
the estimated requirement/ consumption of each nutrient, prevailing
international prices of major fertilizers, total allocation of subsidies and
targeted farm gate prices of major fertilizers. Primary rail freight will be
reimbursed additionally. The Government shall give allocations for 20% of
productions. Since the subsidy amounts per ton are now fixed, industry will be
free to price its products in the market place. The stated objectives of
this policy are competition induced price control and balanced fertilization of
soils. For the industry it means better buying, better logistics/ handlings,
cost control, strength at market place pricing/ pass on strategies and
effective exchange risks hedging. This Company supports the policy and in its
opinion it is a step towards free markets, competition and efficient, mature
and responsible operations.
Policies in Urea :
As set out in the last years' management discussions the NPS III scheme
for reimbursements in urea was to expire on 31si of March 2010. The Government
is in talks with the industry to make out a meaningful and vibrant regime for
Nitrogenous Fertilisers so as to encourage investments and augmentation of
capacities. Till such time that the new policies are announced, the NPS III
scheme continues the time lines for switch over from Naphtha to Gas has been
favorably extended by two years. The Company has meanwhile during the year
entered into gas supply and transportation contracts with GAIL for gas to be
available at the plant gate by January of 201 3. Preparatory work in this
regard in terms of conversion of its facilities both by the Company as well as
in terms of gas transport arrangements by GAIL have already started. As part of
the new initiatives in this sector, the 1 0% increase in Maximum Retail Price
(MRP) of urea has been made effective from April 1, 201 0. This was a logical
step given that the MRPs had not been raised for the last 8 years in spite of
the fact that Minimum Support Prices (MSPs) of agricultural produce have been
hiked several times over.
Opportunities :
With sound economic growth, increase in per capita income and
rising population, food grain requirement of the country is increasing
year by year. The country's food grain requirement in 2020-21 is projected
af 281.1 million tonnes. It is possible to meet this demand through intensive
use of balanced fertilizers along with effective use of other agri
inputs. Per hectare consumption of Nutrient in
Future Outlook :
As per the information given by Ministry of Petroleum, gas
produced from Krishna Godavari basin will be available to south
Operating results of the Company:
Urea production during the year was 3,87,825 MT while actual despatches
for the year was 3,99,300 MT. In NPK Plant 'A', 2,09,122 MT of Samarth
(10:26:26), 53,672 MT of Samrat (18:46:0) and 81,915 MT of Sampatti (12:32:16)
grades were produced, totalling to 344,709 MT which was a record. In NPK Plant
'B', 2,98,318 MT of Samrat (18:46:0), 52,990 MT of Sampatti (12:32:16) and
22,653 MT of Sampanna (20:20:0:1 5) grades were produced, totalling to 3,73,961
MT. Argon Recovery Unit remained under shutdown throughout the year due To
unremunerative market conditions.
Marketing:
Company's marketing areas cover the states of Goa, Karnataka,
higher compared to last year. In trading operations, Company achieved
highest ever sale of 3,77,216 MT of MOP registering 13 % increase over previous
year. The Company also launched marketing activities in
Subsidiaries :
Globex Limited :
Globex Limited, an
offshore subsidiary Company, was established at Jebel Ali Free Zone on 9lh
August, 2009. The Company was established with a view to carry out General
Trading in fertilizers and commodities and investment in properties/Companies,
property development etc.
Gulbarga Cement
Limited (GCL) :
Gulbarga Cement Limited, a wholly owned subsidiary of the Company owns
limestone Mining Lease of 989.89 hectares at Ferozabad in Gulbarga District of Karnataka.
The Company, has received clearance from the Ministry of Environment and
Forests, for setting up Cement Plant of 3.23 million tonnes per annum and Coal
Based Power Plant (50 MW) in Gulbarga, District of Karnataka. The Company is in
the process of acquiring the land for setting up Cement Plant and obtaining
various other approvals for the same.
Indian Furniture
Products Limited (IFPL):
IFPL, a wholly owned subsidiary of the Company, is engaged in
manufacturing of Ready-To-Assemble (RTA) furniture of international quality
through its state-of-theart plant at Kakkalur near Chennai. The Plant is highly
automated and is CMC (Computer Numeric Control) operated. The factory has a
floor area of 225,000 sq.ft. and has capacity to produce 200,000 units of
furniture annually. The company has been awarded with ISO 9001:2000 by TUV
Suddeutschland accredited by TUV,
Simon India
Limited (SIL) :
SIL, a wholly owned subsidiary of your Company, is engaged in
Engineering Procurement and Construction (EPC) activities and has achieved a
turnover of Rs. 2698.300 millions during the current financial year. SIL has an
order book of Rs. 1908.600 millions and is currently executing several major
projects in
1. Ammonia abatement and Flare System Project for SABIC in
2. Gypsum storage and handling Project for Paradeep Phosphates Limited,
Orissa.
3. Dewatering Project for
Zuari Developers
Limited (ZDL):
Zuari Developers Limited (ZDL), a wholly owned subsidiary of your
Company is engaged in the business of real estate. ZDL, is currently, in the
process of development of approx. 73 acres of land at Hulikeri, Srirangapatnam
Taluk, Mandya District, Karnataka for Company's Zuari Garden City Project.
Zuari Fertilisers
and Chemicals Limited (ZFCL) :
Zuari Fertilisers and Chemicals Limited (ZFCL) is a wholly owned
subsidiary of your Company. The Company has received Karnataka High Level
Clearance Committee approval for setting up 1.155 millions MTPA of Urea
manufacturing plant at
Zuari
Infrastructure and Developers Limited (ZIDL):
Zuari Infrastructure and Developers Limited (ZIDL), is a wholly owned
subsidiary of the Company was incorporated with an objective to set up and
develop Special Economic Zone (SEZ) for Information Technology (IT) and
Information Technology Enabled Services (ITES). The Company also proposes to
enter into the business of Real Estate and the other related services.
Zuari Investments
Limited :
Zuari Investments Limited, a subsidiary of the Company, is a member of
both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for equity as
well as Future and Option (FandO) segment. It is a depository participant with
National Securities Depository Limited (NSDL) and Central Depository Services
Limited (CDSL). Besides being empanelled with Association of Mutual Fund of
India (AMFI) for distribution of Mutual Fund products, the company is also a
member of Over the Counter Exchange of India (OTCEI] and a Category-ll
Registrar and Share Transfer Agent registered with Securities and Exchange
Board of India (SEBI). The Company has corporate office in
Zuari Insurance
Brokers Limited (previously Zuari Chambal
Insurance Brokers Limited) :
The name of the company was changed from Zuari Chambal Insurance Brokers
Limited to Zuari Insurance Brokers Limited on 21-10-2009. The Company is an
Insurance Regulatory and Development Authority (IRDA) licensed Direct Broker
for Life and Non-life segment,
Zuari Commodity
Trading Limited :
The Company has become a member of National Commodity Derivative
Exchange Limited (NCDEX) and Multi Commodity Exchange Limited (MCX). The
activation of trading could not be done as the MCX required an approval from
Foreign Investment Promotion Board (FIPB) which is under process.
Zuari Financial
Services Limited :
The Company has submitted requisite papers to Reserve Bank of India
(RBI) for registration as Non Banking Finance Company (NBFC). The registration
has not yet been received.
Zuari Holdings
Limited :
A wholly owned subsidiary was incorporated on 10"1 September 2009
for making the strategic investments. With these services Zuari investments
Limited would be offering complete bouquet of financial services and will
become one stop shop for Stock Broking, Depository Services, Investment
Advisory Services, Insurance Broking Services and Commodity Broking Services
and is fully poised to become a significant player in the capital market.
Zuari Seeds
Limited (ZSL) :
Zuari Seeds Limited, a wholly owned subsidiary of the Company, is
engaged in R and D, production and marketing of hybrid seeds. The Company has
achieved a turnover of Rs. 355.900 millions during the current financial year.
The Company continues to focus on providing superior quality hybrid seeds to
the farming community. The Company's seeds are also exported to
Joint Ventures:
Zuari Maroc
Phosphates Limited (ZMPL) :
Zuari Maroc Phosphates Limited (ZMPL), a 50:50 joint venture with Maroc
Phosphore S.A.,
Zuari Indian
Oiltanking Limited (ZIOL) :
Zuari Indian Oiltanking Limited (ZIOL) a 50:50 joint venture between
Zuari Industries Limited and Indian Oiltanking Limited (IOTL) has state-of-the-art
terminalling facility for petroleum products namely Naphtha, Motor Spirit, High
Speed Diesel and Superior Kerosene. The Terminal at Goa with 71000KL tankage is
situated 85 M above sea level with a 14 KM long piggable pipeline from Mormugao
Harbour, Goa. The Company provides terminalling services to Zuari Industries
Limited, Hindustan Petroleum and Bharat Petroleum. In the year 2009-10, the
terminal has achieved a throughput of 6,25,007 KL @15 degree.
Zuari Rotem
Speciality Fertilisers Limited (ZRSFL) :
Zuori Rotem Speciality Fertilisers Limited (ZRSFL) is a 50:50 joint
venture with Rotem Amfert Negev Limited (Rotem),
Corporate
Governance:
The Company has complied with all the mandatory requirements of Clause
49 of the Listing Agreement. The Report on Corporate Governance pursuant to
Clause 49 of the Listing Agreement is enclosed as Annexure 'C'. The Auditor's
Certificate on Compliance of conditions of Corporate Governance is enclosed as
Annexure 'D', Declaration of Managing Director as Annexure 'E' and the
Management Discussion and Analysis as Annexure 'F'.
Activities for
Social and Inclusive development :
a. Animal health camps : Under Customer Relationship Management Program
(CRM) "Jaikisaon Sangam", the company organizes veterinary health
camps in villages in collaboration with doctors from local Veterinary
Department. On an average around 100- 150 animals are treated in a camp. In
2009-10, the company organized 198 animal health camps in its marketing
territory.
b. Family health camps : The Company organizes family and children's
health check up camps in villages covered under Jaikisaan Sangam program.
During such camps, selected medicines are provided free ot cost to the needy
people. In 2009-10, the company organized 71 family / children health camps in
different parts of its marketing territory.
c. Jaikisaan Krishi Samrat Award : With a view to encourage farmers to
modernize their agriculture, Zuari has instituted "Jaikisaan Krishi Samrat
award". The award is presented to outstanding farmer for his contribution
to farming community at large. The award comprises a citation, a shield and a
cash prize of Rs.50,000. The award for the year 2009-10 was presented to a
progressive farmer, Shri Shivanna Chowdihal from Bijapur district of Karnataka
for his outstanding work in promoting horticultural crops in northern
Karnataka.
d. Telephone help line "Hello Jaikisaan" : For farmers of
e. Relief to Flood affected farmers : Incessant rain in the first week
of October, 2009 had caused unprecedented damage to life and property in six
districts of northern Karnataka. Zuari provided relief in the form of food
packets to the three worst affected villages of Bagalkot district. Zuari has
extended its helping hand to the flood victims of Concicona taluka of
f. Rural sports : To inculcate competitive spirit among the youth in
rural areas, Zuari sponsors several sports activities in rural areas. During
the year 2009-10, company sponsored 7 Wrestling Competitions, 3 Bullock Cart
Races, 1 Cycle Race, 3 Bullock Stone Pulling competitions, 1 Volleyball
Competition and 1 Cricket Tournament in various parts of marketing territory.
g. Schools : The Company endeavours to augment facilities for quality
education in the surrounding schools at Zuarinagar. In line with the same, the
Company, recently, has developed the play ground for the
h. Traffic sign boards and road signage : Company has supplied 220 sign
boards which are displayed on important roads and by lanes with a view to
facilitate traffic in Vasco town. i. Potable water : Potable water is being
supplied
through 25 public taps to around 1000 residents of three villages in the
vicinity of Company's Complex,
j. Scholarships : The company has instituted two annual scholarships,
one each for degree course in Engineering and Agriculture. Each scholarship is
of Rs. 1 2,000/- per annum, covering full duration of degree course. Zuari also
awards four scholarships for two year Higher Secondary course to the toppers in
SSC from four neighbouring high schools of Velsao, Cansaulim, Sancoale and
Zuarinagar, at
k. Municipal Children's Park, Vasco : The Company undertook renovation
work of Municipal Children's Park in Vasco town recently. To facilitate water
supply to the garden, overhead tank of 2000 litre capacity is also provided. A
Balwadi school inside the Park is also given a face lift.
Contingent
liabilities not provided for :
|
|
Rs.
in Millions As
on 31.03.2010 |
Rs.
in Millions As on 31.03.2009 |
|
A. (1) Demand Notices received from Sales
Tax authorities * |
|
|
|
i) demand notice from Karnataka sales tax authorities
(VAT) for levying penalty on professional tax for the year 2005-06 to 2008-09
the company has filed appeal before joint commissioner of commercial taxes
(appeals), Bangalore, against the same (the company ha deposited, Rs. 2.128
millions against the same which is appearing in the schedule of loans and
advances) |
4.256 |
-- |
|
ii) Demand notice from the company has applied for cancellation of
assessment order under the |
13.061 |
-- |
|
B. Demand raised by excise Authorities on
service tax matters * |
|
|
|
Demand notice from Service Tax Authorities towards Service Tax Under Goods Transport Agency Services for the period 2006-07 to 2008-09. |
7.687 |
-- |
|
C. Taxation Matter * |
|
|
|
Penalty u/s 271 ( 1 ) ( C ) of the Income
Tax Act, 1961 pertaining to penalty on capital gain on transfer of Cement undertaking
: Income Tax Appellate Tribunal has passed order in favour of the Company
during the year |
-- |
142.616 |
|
|
|
|
Note:
*Based on
discussions with the solicitors/ favorable decisions in similar cases/ legal opinions
taken by the Company, the management believes that the Company has a good
chance of success in above mentioned cases and hence, no provision there
against is considered necessary.
FIXED ASSETS:
- Land (Freehold)
- Buildings
- Railway Siding
- Plant and Machinery
- Vehicles
- Furniture, Fittings and Office Equipment
- Computer Software
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED
31.03.2011
(Rs in
Millions)
|
Particulars |
Year ended 31.03.2011 Audited |
|
Income |
|
|
a) Net Sales / Income from Operations |
55228.300 |
|
b) Other Operating Income |
391.500 |
|
Total Operating Income |
55619.800 |
|
Expenditure |
|
|
(a) (Increase)/decrease in Stock in Trade |
[2154.000] |
|
(b) Consumption of Raw Materials |
22317.300 |
|
(c) Purchase of traded goods |
2156.500 |
|
(d) Employees Cost |
794.700 |
|
(e) Depreciation |
213.300 |
|
(f) Other Expenditure |
6922.500 |
|
Total Expenditure |
53250.300 |
|
Profit / (Loss) From Operations before other Income Interest & taxes |
2369.500 |
|
Other Income |
408.200 |
|
Profit/(Loss) before Interest and Exceptional items |
2777.700 |
|
Interest |
383.200 |
|
Profit / (Loss) From
Ordinary activities before Tax |
2394.500 |
|
Tax expenses |
725.700 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
1668.800 |
|
Extraordinary Items |
-- |
|
Net Profit/(Loss) for the period |
1668.800 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
294.400 |
|
Reserves (Excluding Revaluation Reserves) |
11909.500 |
|
Earning per share Basic and diluted EPS for the period (Not Annualized) |
56.68 |
|
Public Share
Holding |
|
|
Number of shares |
19321231 |
|
Percentage of shareholding |
65.63 |
|
Promoter and promoter group share holding |
10119373 |
|
a) Pledged / Encumbered |
|
|
- Number of Shares |
2171767 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
21.46 |
|
- Percentage of shares(as a % of the total share capital of the company) |
7.38 |
|
b) Non-encumbered |
|
|
- Number of Shares |
7947606 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
78.54 |
|
- Percentage of Share (as a % of the total share capital of the company) |
27.00 |
Statement of Assets & Liabilities As At 31st March 2011
Rs.
in millions
|
Particulars |
Year ended 31.03.2011 Audited |
|
SHAREHOLDERS' FUNDS: |
|
|
(a) Capital |
294.400 |
|
(b) Reserve & Surplus |
11909.500 |
|
MINORITY INTEREST |
0.000 |
|
LOAN FUNDS |
9719.400 |
|
DEFERRED TAX LIABILITIES (NET) |
45.000 |
|
TOTAL |
21968.300 |
|
GOODWILL |
|
|
FIXED ASSETS |
2258.800 |
|
INVESTMENTS |
5208.800 |
|
DEFERRED TAX ASSETS (NET) |
0.000 |
|
CURRENT ASSETS, LOANS AND ADVANCES |
|
|
(a) Inventories |
7177.500 |
|
(b) Sundry Debtors |
7647.300 |
|
(c) Cash & Bank Balances |
2866.400 |
|
(d) Other Current Assets |
2123.400 |
|
(e) Loans & Advances |
2633.600 |
|
Less: Current Liabilities and provisions |
|
|
(a) Liabilities |
7450.000 |
|
(b) Provisions |
497.500 |
|
NET CURRENT ASSETS |
14500.700 |
|
MISCELLANEOUS EXPENDITURE (NOT WRITTEN OFF OR ADJUSTED) |
0.000 |
|
TOTAL |
21968.300 |
WEBSITE DETAILS:-
HISTORY
Subject, a part of K K Birla Group is a leading agri-inputs company.
The company is engaged in the manufacture, sale and trading of fertilizers,
seeds and pesticides. They are having their manufacturing facilities at
Directors:
Mrs. Jyotsna
Poddar was appointed as Additional Director of the
Company with effect
from 15th May, 2009. Mrs. Poddar
will hold the
Office of Additional Director
till the forthcoming Annual General
Meeting. Mrs. Poddar is eligible
for appointment as Director. Mr. Shyam
Bhartia and Mr. H.S. Bawa retire by rotation at the forthcoming
Annual General Meeting and are eligible for re-appointment. The resume
and details of other directorships and committee memberships of Mrs.
Jyotsna Poddar, Mr. Shyam Bhartia
and Mr. H.S. Bawa, are given in Annexure C'
to this report.
Press Release:
GOMANT
SARVOCHCHA SURAKSHA PURASKAR
We are happy to announce that ZUARI has bagged “Gomant Sarvochcha Suraksha Puraskar” from Green Triangle Society,
The award was presented by the Honourable Chief Minister of
The basis for this award was not only the safety performance for the
last three years but also good safety management practices followed and
included following parameters:
• Health and Safety Management Systems
• Worker participation in Health and Safety
• Health and Safety Training
• Work Permit, tag out and lock out systems
• On Site Emergency Plan, mock drills
• Internal and External Safety auditing, review process
• Promotion of safety and health at work place
• Community awareness programs
• Safety of the contract workers
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.44.80 |
|
|
1 |
Rs.72.85 |
|
Euro |
1 |
Rs.63.11 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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.