MIRA INFORM REPORT

 

 

Report Date :

07.01.2011

 

IDENTIFICATION DETAILS

 

Name :

UNITED PHOSPHORUS LIMITED

 

 

Registered Office :

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

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

02.01.1985

 

 

Com. Reg. No.:

04 – 25132

 

 

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

 

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 77000000

 

 

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.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

 

 

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

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, Opp:Bhamburkar Hospital, Opp: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, Opp: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 31.03.2010)

 

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 30.09.2010)

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

3,797,919

0.86

Bodies Corporate

118,813,730

26.94

Sub Total

122,611,649

27.81

 

 

 

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

122,611,649

27.81

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

53,137,959

12.05

Financial Institutions / Banks

1,107,517

0.25

Insurance Companies

25,085,694

5.69

Foreign Institutional Investors

153,664,121

34.85

Sub Total

232,995,291

52.84

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

43,637,725

9.90

Individuals

 

 

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

28,481,307

6.46

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

3,202,038

0.73

 

 

 

Any Others (Specify)

9,639,133

2.19

Overseas Corporate Bodies

6,740

-

Non Resident Indians

6,079,777

1.38

Foreign Corporate Bodies

3,552,616

0.81

Sub Total

84,960,203

19.27

 

 

 

Total Public shareholding (B)

317,955,494

72.11

 

 

 

Total (A)+(B)

440,567,143

99.91

 

 

 

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

390,720

0.09

 

 

 

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

440,957,863

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Agrochemicals

 

 

Products :

ITC CODE

Product Description

 

38089210

Mancozeb

2815.11.00

Caustic Soda

38089390

Devrinol

 

 

PRODUCTION STATUS (As on 31.03.2010)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

 

Speciality Chemicals

Tonnes

12

48

21

Chloro-Alkaline Products

Tonnes

101700

112500

96362

 

NM3

--

--

11182672

Industrial Chemicals

Tonnes

53904

42684

26305

Power

MW

48

48

2334 (Lacs KWH)

Pesticides

Tonnes

98264

138428

65484

Mercury Salts

Tonnes

100

100

--

Pesticides Intermediates

Tonnes

42631

34872

14344

 

 

GENERAL INFORMATION

 

No. of Employees :

Approximately  2500

 

 

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 Loans

31.03.2010

(Rs. In Millions)

31.03.2009

(Rs. In Millions)

Secured Redeemable Non-Convertible Debentures:

 

 

a) Nil (Previous year 100) 7.2T – 7 Year

--

100.000

b) Of Rs.1.000 Million each fully paid up

 

 

1700 11.7% - 7 years

1700.000

1700.000

 

 

 

From Banks

 

 

On term loan accounts

200.000

450.000

Under Vehicle Finance Schemes

0.800

4.900

On Cash Credit and Working Capital Demand Loan Accounts

1.800

1395.800

 

 

 

From Others

 

 

External Commercial Borrowing from International Finance Corporation

314.300

489.600

Total

2216.900

4140.300

 

NOTE:

 

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. 27.01.2012. These debentures are secured by way of pledge of 47,30,000 equity shares of Advanta India Limited

 

2. Term loan from State Bank of India amounting to Rs.200.000 Millions is secured by way of a first charge on pari-passu basis by hypothecation of movable plant and machinery, machinr’ spares, tools and accessories and other movables, both present and future, whether installed or not, situated at Vapi, Ankleshwar and Halol units of the Company excluding assets on which specific first charge is already created/to be created in favour of other lenders. Further, the aforesaid loan is further secured by way of first mortgage and charge on leasehold land situated at Vapi and Ankleshwar units and land at HaIol Unit together with all buildings and structures thereon and all plant and machinery attached to earth.

 

3. Term Loans from ICICI Bank Limited under Vehicle Finance Schemes amounting to Rs.0.800 Million are secured by an exclusive charge by way of hypothecation of vehicles purchased under the said Schemes.

 

4. Cash 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.

 

5. External Commercial Borrowing from International Finance Corporation amounting to 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 Loans

31.03.2010

(Rs. In Millions)

31.03.2009

Rs. In Millions

 

 

 

Term Loans from Banks

1200.000

750.000

From Banks on Working Capital Loan Accounts

808.100

0.000

Commercial Papers from Banks (Short term)

0.000

250.000

Unsecured Debentures

3850.000

0.000

Foreign Currency Convertible Bonds

3025.900

3445.000

External Commercial Borrowings from Banks

7330.300

7632.500

Syndicated Notes

3063.700

3954.600

 

 

 

Total

19278.000

16032.100

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. V. Ghatalia and Associates

Chartered Accountant

 

 

Joint Venture :

·         United Phosphorus Limited, Bangladesh

·         Hodogaya UPL Company Limited, Japan

·         Nisso TM LLC

 

 

Associate Company :

·         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 :

·         United Phosphorus (Korea) Limited

·         United Phosphorus (Shanghai) Company Li inited

·         United Phosphorus (Taiwan) Limited

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

·         United Phosphorus do Brazil Ltda

·         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, 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 0.0 - Poland

·         United Phosphorus Sole Partner Limited, Greece

·         United Phosphorus Switzerland Limited.

·         United Phosphorus Vietnam Co., Limited

·         Agri pack Zambia Limited

·         Agrindustrial, S.A., Spain

·         Agrodan, ApS

·         Anning Decco Fine Chemical Co. Limited, China

·         Bio-win Corporation Limited, Mauritius

·         Canegrass LLC, .USA

·         Cerexagri B.V. - Netherlands

·         Cerexagri Costa Rica, S.A.

·         Cerexagri Delaware, lnc., USA

·         Cerexagri Italia S.R.L.

·         Cerexagri S.A.S., France

·         Cerexagri Ziraat Ve KimyaSanayl VeTicaret Limited Sirketi, Turkey

·         Cerexagri, Inc. (PA)

·         Citrashine (Pty) Limited, South Africa

·         Compania Espanola Industrial Quirnica do Productos Agricolas Y Dornesticos, 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

·         Reposo S.A.I.C., Argentina

·         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

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2010)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1275000000

Equity Share

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

 

 

 

 

439563568

Equity Share

Rs.2/- Each

Rs.879.100 Millions

 

 

 

 

 

 

NOTE:

 

Of the above

 

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 Equity shares of Rs.2 each fully paid up have been allotted as bonus shares by capitalisation of Securities Premium, without payments being received in cash

 

Out of foreign currency convertible bonds (FCCB) of series ‘B’ issued in financial years 2006, FCCB amounting to USD 67.40 million are outstanding as on March 2010 in respect of which the bond holders have an option to convert the said FCCBs into equity shares.

 

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

879.100

 879.100

439.300

2] Share Application Money

0.000

852.800

852.800

3] Reserves & Surplus

18336.200

17297.400

16591.800

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

19215.300

19029.300

17883.900

LOAN FUNDS

 

 

 

1] Secured Loans

2216.900

4140.300

1764.000

2] Unsecured Loans

19278.000

16032.100

13302.700

TOTAL BORROWING

21494.900

20172.400

15066.700

DEFERRED TAX LIABILITIES

722.300

265.500

212.100

DEFERRED PAYMENT LIABILITIES

43.900

211.700

281.500

 

 

 

 

TOTAL

41476.400

39678.900

33444.200

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8370.500

7793.700

5500.000

Capital work-in-progress

293.300

1002.800

1273.000

 

 

 

 

INVESTMENT

6878.700

3740.500

8312.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

INTANGIBLE ASSETS

1357.300

1419.600

1410.200

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2870.100

5519.100

3022.700

 

Sundry Debtors
7476.600

7269.300

4985.200

 

Cash & Bank Balances
3837.000

703.900

3038.300

 

Other Current Assets
597.100

707.400

710.100

 

Loans & Advances
17736.500

20369.000

13087.100

Total Current Assets
32517.300

34568.700

24843.400

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

Sundry Creditor
5010.200

5206.300

7380.400

 

Other Current Liabilities
1905.400

2868.700

 

 

Provisions
1025.100

771.400

514.000

Total Current Liabilities
7940.700

8846.400

7894.400

Net Current Assets
24576.600

25722.300

16949.000

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

41476.400

39678.900

33444.200

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

24533.900

23273.900

14081.300

 

 

Other Income

1739.500

2532.600

2365.500

 

 

TOTAL                                     (A)

26273.400

25806.500

16446.800

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing and other expenses

20665.000

22107.300

13578.300

 

 

Increase/(Decrease) in Finished Goods

1102.400

(1140.500)

(47.300)

 

 

Exceptional Item

0.000

5.000

26.500

 

 

TOTAL                                     (B)

21767.400

20971.800

13557.500

 

 

 

 

 

Less

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

450.600

4834.700

2889.300

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

926.400

2301.400

1276.100

 

 

 

 

 

 

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

3579.600

2533.300

1613.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1079.100

888.900

669.100

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

2500.500

1644.400

944.100

 

 

 

 

 

Less

TAX                                                                  (H)

687.600

167.000

18.900

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1812.900

1477.400

925.200

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

6.300

117.000

--

 

 

 

 

 

Add

APPROPRIATIONS

 

 

 

 

Debentures Redemption Reserve Written Bank

440.200

0.000

--

 

Amount transferred from General Reserve

0.000

500.000

--

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Final Dividend on Equity Shares

879.100

659.600

--

 

 

Tax on Distributed Profit: On Equity Dividend

146.000

112.100

--

 

 

Debentures Redemption Reserve

800.300

1166.400

--

 

 

Transfer to General Reserve

200.000

150.000

--

 

BALANCE CARRIED TO THE B/S

234.000

6.300

--

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

4.12

3.36

--

 

 

Export of goods on FOB basis

13337.500

13807.900

7383.800

 

 

Interest/ Dividend

502.000

754.200

1090.200

 

 

Others

75.700

57.500

41.700

 

TOTAL EARNINGS

13919.320

14619.600

8515.700

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Traded Goods

4414.700

9620.300

4142.500

 

 

Stores & Spares

11.500

6.400

4.600

 

 

Capital Goods

51.100

53.000

290.700

 

TOTAL IMPORTS

4477.300

9679.700

4437.800

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

3.36

2.31

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2010

30.09.2010

Type

 

1st Quarter

2nd Quarter

Net Sales

 

6941.900

7356.200

Total Expenditure

 

5704.700

5688.500

PBIDT (Excl OI)

 

1237.200

1667.700

Other Income

 

270.200

356.600

Operating Profit

 

1507.400

2024.300

Interest

 

1129.300

666.800

Exceptional Items

 

0.000

0.000

PBDT

 

378.100

1357.500

Depreciation

 

276.900

283.300

Profit Before Tax

 

101.200

1074.200

Tax

 

28.200

260.600

Provisions and contingencies

 

0.000

0.000

Profit After Tax

 

73.000

813.600

Extraordinary Items

 

0.000

0.000

Prior Period Expenses

 

0.000

0.000

Other Adjustments

 

0.000

0.000

Net Profit

 

73.000

813.600

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
6.90

5.72

5.63

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
10.19

7.07

6.70

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
6.12

3.88

3.11

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.13

0.09

0.05

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.53

0.46

0.44

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
4.10

3.91

3.15

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS

 

(Rs. In Millions)

Particulars

 

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors

(Includes amount due to subsidiary companies Rs. 553.800 Millions (Previous year: Rs. 1151.100 Millions)

5010.200

5206.300

NA

Total

5010.200

5206.300

NA

 

 

HISTORY:

 

Subject incorporated in 2nd January of the year 1985 as Vishwanath Commercials Limited. Company is a global producer of crop protection products, intermediates, specialty chemicals and other industrial chemicals. Company has its presence across value added Agri inputs ranging from seeds to crop protection and post harvest activity. Subject is in the business of Manufacturing and Marketing of Caustic Chlorine, White Phosphorus, Industrial Chemicals, Speciality Chemicals and Captive Power Generation of 48.5 MW. The Company offers a wide range of products that includes insecticides, Fungicides, Herbicides, Fumigants, PGR and Rodenticides. Company has 21 manufacturing sites (9 in India, 4 in France, 2 in Spain, 1 each in UK, Vietnam, Argentina, Netherlands, Italy, China) having close support from on-site technical services and quality control. Each one operates to the strictest international quality standards. Also the company has its own subsidiary offices in Argentina, Australia, Bangladesh, Brazil, China, Canada, Denmark, Indonesia, France, Hong Kong, Japan, Korea, Mauritius, Mexico, New Zealand, Russia, Spain, Taiwan, South Africa, USA, UK, Vietnam and Zambia. In February of the year 1985, the Company went to public with an issue of 1,50,000 Equity Shares of Rs.10/- each for cash at par aggregating Rs.15, 00,000. As at February 1994 R.D. Shroff along with his family and investment companies acquired 78.61% of the equity capital of the company and changed the company name to Search Chem Industries Limited in 24, February 1995. In March 1995 the group reorganized the shareholding; as a result United Phosphorus Limited acquired 75% of the Equity Capital of Search Chem Industries Limited from the family and investment companies of Mr. R. D. Shroff. Subsequently in August of the year 1995 Company acquired further 11560 shares thereby resulting in total holding of 79.72%. Company purchased 8,500 Equity Shares from R.D. Shroff and 1,86,810 Equity Shares from R.D Shroff's family members and investment Companies. As a result, the company has become the promoter of Search Chem Industries Limited. After the takeover, the Company has changed its business of trading in shares/debentures and had entered into the chemical business.

 

During the year 2001, Demuric Holdings Private Limited intends to acquire 60,35,640 shares of the company from the promoters inter se on or after 13th March at market price. Manufacturing division of the company was transferred to Search Chem Industries Limited and the name of Search Chem Industries Limited was changed to United Phosphorus Limited in 30th September of the year 2003.

 

During the year 2004, the company acquired 20% stake in Cropserve, a company based in South Africa and also in the same year, signed an agreement to acquire registration for production of Lenacil and Chloridazon from Agricola for UK, France and Italy. The Company acquired the CEQUISA and REPOSO S.A.I.C Argentina in the year of 2005. Company had signed an agreement with Biocentury of China along with Nath Biogene (India) Limited for transfer of technology related to Bt cotton.

 

During the year 2005-06, the Company issued Foreign Currency Convertible Bonds of US $ 150 million. This issue was made for raising finance for acquiring overseas businesses/ registrations, working capital requirements of overseas subsidiaries and meeting capital expenditure requirements of the Company.

 

The Company made its first acquisition in Indian market in the form of SWAL Corporation Limited., which engaged in dealing in agrochemicals and fertilizer mixtures. Another acquisition has been Advanta, Netherlands, a supplier of seeds and seed technologies to farmers and other industrial and non-industrial consumers, etc. Company gets a jump-start entry in the seed business. This is a diversification of business, which is related to the main business of the Company.

 

In the year 2006-07, the Company acquired three products from Bayer Crop Science, AG Germany. This has resulted in broadening the product portfolio of the Company. Company purchased the global Propanil herbicide business from M/s Dow Agro Science LLC. This will help the Company to achieve growth in North America, Latin America, Europe, Africa and Asia Pacific. During the same period of 2006-07, the Company purchased from DuPont Bensulfuron - methyl business including Londax herbicide and all mixtures throughout the world, except Asia Pacific Region and also Company acquired all the shares of Cerexagri group of companies. Cerexagri specializes in manufacture of fungicides. It has a very good marketing network. This acquisition has resulted in the Company figuring among top three global generic agrochemical companies in the world. In July of the year 2007, the company has takeover the 100% stake through its UK subsidiary of ICONA and ICONA San Luis S.A. (ICONA), a manufacturer and distributor of crop protection products headquartered in Buenos Aires, Argentina.

 

As at February 2008, Company has purchased 100% stake in the Evofarms group of Companies (Evofarms), a major Marketing company of generic products in the crop protection industry headquartered in Bogota, Colombia. The share purchase includes all stocks, products registrations and all other property rights associated with the business of Evofarms.

 

The Company is moving with the aim of Manufacturing and Supplying Crop Protection and Speciality Chemicals Worldwide. Providing solutions to optimise farm productivity for the farmer through innovative and cost effective products.

 

 

OPERATIONAL PERFORMANCE:

 

During the year the monsoon in India was scanty and erratic. There was drought in many parts of the country. However, as the company’s sales are made in almost all the countries in the world, the company’s dependence on rainfalls in India has reduced considerably. In fact, international sales account for 78% of the total sales globally. Hence, the poor rainfall in India did riot affect the performance of the Company.

 

During the first few months of the financial year key input costs were high and so were the selling prices. Subsequently the input costs moderated over the course of the year. The company was able to effectively pass on the impact of the changes in input costs. The company continuously endeavors to bring efficiencies in production processes to savings in overhead costs.

 

The year witnessed varied currency fluctuations wherein the Indian Rupee appreciated notably against the US Dollar and Euro. The company took necessary action to reduce the Impact of currency fluctuations.

 

Total net sales for the year were higher at Rs.24533.900 Millions as against Rs.23273.900 Millions. Profit before Taxes were higher at Rs.2500.500 Millions as against Rs.1644.400 Millions last year.

 

 

FUTURE OUTLOOK:

 

India, with its vast population, is a huge market and Indian economy survived the severe onslaught of global slowdown. In fact, Indian economy maintained its growth momentum. All agro-based companies in India have done well in the current year. For the year 2010-11, near normal rains are forecasted. This should augur well for the Company. The expected revival of economies all over the world will pave way for another good year. U.S. and European economies have concerns in the areas of high unemployment and low spending. Some of the world economies face political crisis and financial imbalances. In comparison, Indian economy has done extremely well. Monetary policies, coupled with a very strict financial discipline, have helped the country face the downturn effectively and some of the sectors have progressed very well last year. Agri-based sector is one such sector. The company is expected to maintain a stable growth rate in the coming year.

 

 

FINANCE:

 

 

During the year, the company has raised funds of Rs.3850.000 Millions by issue of unsecured Redeemable Non-convertible Debentures. It has also issued short term commercial papers.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Industry Structure and Development

 

The company is mainly engaged in the business of agrochemicals and other industrial chemicals and chemical intermediates. It has also got a captive power plant in Jhagadia.

 

For marketing the agrochemicals, their registration with the Government registering authorities in different countries is necessary. It is not possible to sell the products without obtaining registration. In India, the registering authority is Central Insecticide Board.

 

The inputs for various agrochemicals as well as the agrochemicals are hazardous and toxic. The industry has to comply with various strict environment laws for production, storage and handling of the inputs and agrochemicals. In India, the company is one of the largest manufacturers of generic agrochemicals. It is holding product registration for its products in India as well as many other countries.

 

Agrochemical sales in different countries are made through subsidiaries or through dealers. The company has established many subsidiaries in different parts of the world which are the marketing arms of the company in different countries. Within India, the company has a large sales force as well as depots and distributors in all the states. The Company with its very wide range of agrochemicals, tries to cater to all the farming requirements for all the crops. To improve the production, farmer education is imparted for optimum use of agrochemicals without any environment hazards.

 

There is a diversity of players in the industry. On one hand there are giant multinational companies engaged in the business. At the same time, there are small formulators and “in-season” dealers and traders. While production of technical grade agrochernicals is carried out by only a few companies, a large number of formulators are also in the market.

 

There are many generic and off patent agrochemicals in the markets. Development and commercial exploitation of new molecules is carried out by some giant companies, but the expenses to be incurred in development of new molecules are significantly high.

 

In India, agriculture is very important. The Government provides many fiscal and other benefits to this sector. The country’s demand for food stock is ever increasing because of the vast population. This can be satisfied by increasing the production of crops, which is possible by proper usage of agrochemicals.

 

 

OPPORTUNITIES AND THREATS

 

The opportunities for agrochemical industry in India are tremendous. To feed the vast population, increase in food crop production is inevitable and this can be achieved effectively with the help of agrochemicals. The farmers throughout the world have recognized the benefits arising out of use of agrochemicals to increase the yields of food crops, and as the market price for the food crops have become more remunerative, the demand for agrochemicals is constantly going up throughout the world. As there are very few major players in the market, the growth potential in this industry is very high. Entry barriers for new entrants in the form of product registrations, extensive data submission to the regulatory authorities, compliances with strict environment laws, etc. provide tremendous growth opportunities to the existing established companies.

 

The main threat for the industry is the unpredictable weather, uncertainty of monsoon, too much or too little of rainfall. Even though storage of water and canal system helps in overcoming this problem, it still continues to be a major hurdle in the growth of this industry. Higher input costs and non-availability of some of the inputs at times is another threat.

 

 

SEGMENTWISE PERFORMANCE:-

 

a) Agrochemicals — Agrochemicals accounted for 800/0 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 use at Jhagadia

d) Exports — Exports accounted for 55% of total sales.

 

 

BUSINESS OUTLOOK

 

The company is in an advantageous position with a wide range of agrochemicals that can be used on all types of food crops, fruits, vegetables, etc. It is looking for acquisition opportunities to have inorganic growth of business. The agro industry in India has withstood the adversities of global slowdown. With the world economies getting hack to recovery, the business outlook is expected to be still better. The company is putting all its resources in the form of vast sales force, network of subsidiaries and dealers, joint ventures, stock points, strategic tie—ups in different countries, etc. to the best use to increase its sales year after year. Overall, the business outlook for the company is highly encouraging.

 

 

FIXED ASSETS:

 

·         Land-Freehold

·         Land-Leasehold

·         Leasehold Improvement Asset

·         Buildings

·         Plant and Machinery

·         Laboratory Equipments

·         Furniture, Fixtures and Equipments

·         Vehicles

·         Temporary Structures

 

 

AS PER WEBSITE:

 

PROFILE:


Subject incorporated in1969 is a global producer of crop protection products, intermediates, specialty chemicals and other industrial chemicals. Company has its presence across value added Agri inputs ranging from seeds to crop protection and post harvest activity. Being the largest manufacturer of agrochemicals in India, they offer a wide range of products that includes insecticides, Fungicides, Herbicides, Fumigants, PGR and Rodenticides. They operate in every continent and have customer base in 86 countries, making them global player of crop protection products in the world.. The company ranks amongst the top 5 post- patent agrochemical manufacturers in the world.


United Phosphorus Limited has its own subsidiary offices in Argentina, Australia, Bangladesh, Brazil, China, Canada, Denmark, Indonesia, France, Hong Kong, Japan, Korea, Mauritius, Mexico, New Zealand , Russia, Spain, Taiwan, South Africa, USA, UK, Vietnam & Zambia.



MANUFACTURING & FORMULATION:


Company has 21 manufacturing sites (9 in India ,4 in France, 2 in Spain, 1 each in UK, Vietnam, Argentina , Netherlands, Italy, China) having close support from on-site technical services and quality control. Each one operates to the strictest international quality standards.


The formulation plants are capable of producing a wide range of sophisticated formulations both for their own needs and as a toll formulator for many multi-national companies.


They are constantly looking for new ways to improve the products and services. The efficient synthesis of active ingredients is the core of their success and they are pioneers of' backward integration' in agrochemicals and this approach secures reliable raw materials for multi-site manufacturing through an extensive downstream range of products and services.


Company is one of the world's few companies to manufacture complex organo-phosphorus compounds starting from the basic raw material, rock phosphate ore .This strategy has now been extended to other products, the most recent being an integrated caustic chlorine plant using the latest membrane technology, creating basic building blocks for agrochemicals and specialty chemicals.

 


RESEARCH AND DEVELOPMENT AND REGISTRATION


Working closely with customers in the marketplace, company recognizes the requirement for the highest level of support in product research, development and registration. Capability in applied R&D is one of company’s major corporate strengths. R&D strategy is to continue to invest in innovative formulations that are environment and user friendly, which are essential to the growth of agro chemical companies. Most importantly, company is wholly committed to maintaining and expanding its portfolio of registrations globally. Considerable investment has been focused on the regulatory requirements for registration support.


Company has a dedicated registrations team, which works closely with customers and registration authorities. Registrations activity is greatly assisted by company’s access to the internationally recognized Jai Research Foundation an independent centre of excellence for research and toxicology with Good Laboratory Practice (GLP) status.

Company has the commitment and capability to offer total support from start to finish in the agricultural sector.



PRESS RELEASE:

 

UNITED PHOSPHORUS LIMITED ACQUIRES RICECO IN USA

 

MUMBAI, INDIA - (December 17, 2010) – United Phosphorus Limited (UPL) today announced it has acquired RiceCo LLC, USA along with its subsidiaries and certain Assets of the International business of its Affiliate Company.

 

RiceCo based out of Tennessee in USA does business in more than 20 countries with major markets in the US and other countries like Mexico, Thailand, Nigeria and Sri Lanka. RiceCo mainly caters to the rice market and has a wide range of product offerings based on the herbicide Propanil for this segment.

 

Propanil is a selective, post-emergence foliar applied, non-residual herbicide for the control of many important annual grasses, broadleaf and sedge weeds used in rice.

 

“RiceCo is a focused crop (rice) company and will benefit by leveraging UPL’s global sales and marketing network in taking its product offerings to the global rice markets. In turn RiceCo will provide rice farmers direct access to UPL’s current portfolio of products. In addition, the company will add strong brands for the Rice segment to UPL’s branded product portfolio” said Jai Shroff, CEO, UPL This is the second acquisition of UPL in this calendar year following the acquisition of the global Mancozeb business and the Brand Manzate from DuPont in June this year.

 

UPL is the largest Indian agrochemical Company and is engaged in research, manufacturing, selling and distribution of agrochemicals and specialty chemicals across the globe. The Company’s revenue for the year ended March 2010 was about US$ 1,142 million.

 

Financial terms of the acquisition were not disclosed.

 

UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER ENDED 30.09.2010

 

(Rs. In Millions)

Particulars

Quarter Ended

30.09.2010

(Unaudited)

Half Year Ended

30.09.2010

(Unaudited)

1. a) Net Sales/ Income form operations

7086.900

13699.700

b) Other Operating Income

269.300

598.400

 

7356.200

14298.100

2. Expenditure

 

 

a) Increase/ Decrease in stock in trade and work in progress

[209.200]

[415.500]

b) Consumption of Raw Materials

3396.800

6475.200

c) Purchase of Traded Goods

668.700

1562.500

d) Employees Cost

372.500

779.200

e) Depreciation

283.300

560.200

f) Other Expenditure

1459.700

2991.800

g) Total

5971.800

11953.400

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

1384.400

2344.700

4. Other Income

356.600

626.800

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

1741.000

2971.500

6. Interest and other Finance Charges

666.800

1796.100

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

1074.200

1175.400

8. Exceptional Items

--

--

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

1074.200

1175.400

10. Tax Expenses

260.600

288.800

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

813.600

886.600

12.  Paid-up Equity Share Capital (Face value of Rs. 10/- each)

881.900

881.900

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)

1.84

2.01

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

1.77

1.93

15. Public Shareholding

 

 

- No. of Shares

318346214

317346214

% of Shareholding

72.19

72.19

16. Promoters and Promoter group shareholding

 

 

a) Pledged/ Encumbered

 

 

- No. of Shares

4400000

4400000

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

3.59

3.59

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

1.00

1.00

b) Non Encumbered

 

 

- No. of Shares

118211649

118211649

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

96.41

96.41

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

26.81

26.81

17. Debt Equity Ratio

--

1.39

18. Debt Service Coverage Ratio

--

1.15

19. Interest Service Coverage Ratio

--

1.55

 

Notes:

 

  1. The above Unaudited Financial Results were reviewed by the Audit Committee and thereafter approved at the Meeting of the Board of Directors held on 26th October, 2010 and the same has been subjected to a limited review by the Statutory Auditors of the company.
  2. The Com any made an issue of Foreign Currency Convertible Bonds (FCCB’s) amounting US $ 150 Million on 6th January, 2006. out of the issue, FCCBs Aggregating to US $ 86.70 million have been converted into equity shares upto 30th September, 2010.
  3. Ratio have been computed as Follows:

Debt comprises long- term and short- term borrowings

Debt Service Coverage Ratio = (Earning before Interest and Tax + Depreciation and Amortisation) / (Interest on Debt + Principal Repayments)

Interest Services Coverage Ratio = Earning before Interest and Tax/ Interest on Debt.

  1. The Details of investors complaints (as informed by Sharepro Services, Registrar and Transfer Agent of the company) : There were no investors complaints pending at the beginning  of the quarter. The company has received 58 complaints form the investors during the quarter and all the complaints were resolved. There were no complaints lying unresolved at the end of the quarter.
  2. Previous period/ years figures have been regrouped/ rearranged wherever necessary.

 

 

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE PERIOD ENDED 30TH SEPTEMBER, 2010

 

 

(Rs. In Millions)

Particulars

Quarter Ended

30.09.2010

(Unaudited)

Half Year Ended

30.09.2010

(Unaudited)

1. Segment Revenue

 

 

a. Agro Division

5968.900

10854.600

b. Industrial Chemicals Division

1302.700

2556.100

c. Others- Traded Products

470.700

1509.900

d. Unallocated

60.500

114.100

Total

7802.800

15034.700

Less:  Inter – Segment Revenue

715.900

1335.000

Net Sales form Operations

7086.900

13699.700

2. Segment Results Profit/ Loss before Tad and Interest

 

 

a. Agro Division

1276.700

2345.500

b. Industrial Chemicals Division

237.100

426.800

c. Others- Traded Products

55.600

209.900

d. Unallocated

13.700

31.600

Total

1583.100

3013.800

Less:

 

 

i) Interest and other Finance Charges

666.800

1796.100

ii) Unallocable Expenditure / Income

[157.900]

42.300

Total Profit Before Tax

1074.200

1175.400

3. Capital Employed

(Segment Assets- Segment Liabilities)

 

 

a. Agro Division

11455.300

11455.300

b. Industrial Chemicals Division

1998.600

1998.600

c. Others- Traded Products

[682.600]

[682.600]

d. Unallocated

7521.900

7521.900

Total

20293.200

20293.200

 

 

STATEMENT OF ASSETS AND LIABILITIES (STANDALONE) AS AT 30.09.2010

 

(Rs. In Millions)

Particulars

30.09.2010

(Unaudited)

SOURCES OF FUNDS

 

Shareholder’ Fund

 

Share Capital

881.900

Reserve and Surplus

19411.300

Loan Funds

28302.500

Deferred Tax Liabilities (Net)

678.700

Total Funds

49274.400

Application of Funds

 

Fixed Assets (Including capital  Work-in-progress Rs. 409.900 Millions (Previous Period – Rs. 745.900 Millions and previous year Rs. 293.300 Millions))

9856.000

Investments

11645.000

Current Assets, Loans and Advances

 

Inventories

3880.100

Sundry Debtors

10146.600

Cash and Bank Balances

2529.000

Other Current Assets

804.600

Loans and Advances

18255.400

Less: Current Liabilities and Provisions

 

Current Liabilities

7842.300

Provisions

0.000

Net Current Assets

27773.400

Total Assets

49274.400

 

 

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.45.31

UK Pound

1

Rs.70.26

Euro

1

Rs.59.56



 

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.