MIRA INFORM
REPORT
|
Report Date : |
26.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
THE |
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Registered
Office : |
Neville House, J.N. Heredia Marg, Ballard Estate, Mumbai - 400 001, |
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Country : |
India |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
23.08.1879 |
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Com. Reg. No.: |
11-000037 |
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Capital
Investment / Paid-up Capital : |
Rs. 405.400 millions |
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CIN No.: [Company Identification
No.] |
L17120MH1879PLC000037 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT00159F/MUMT13249F |
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PAN No.: [Permanent Account No.] |
AAACT2328K |
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Legal Form : |
A public limited
liability company. The company's
shares are listed on the Stock Exchanges |
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Line of Business
: |
Manufacturer of
Cloth, Polyester Staple fibre and manmade yarn. |
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No. of Employees
: |
1500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 45000000 |
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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 the main company of Wadia Group. It is a well established
and reputed company having fine track. General financial position is good.
Trade relations are reported as fair. Payments are reported to be correct and
as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY
|
Name : |
Mr. Brajesh Sarda |
|
Designation : |
Finance Department |
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Contact No.: |
91-9619198877 |
|
Date : |
25.07.2011 |
LOCATIONS
|
Registered Office : |
Neville House, J.N. Heredia Marg, Ballard Estate, Mumbai - 400 001, |
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Tel. No.: |
91-22-22618071 /
4520 / 22693712 / 22655014 / 22657895 |
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Fax No.: |
91-22-22615622 /
22655014 / 22614520 / 22653530 |
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E-Mail : |
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Website : |
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Area : |
70000 sq. ft.
(Approximately) |
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Location : |
Owned |
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Administrative
Office : |
C-1, Wadia
International Centre, Pandurang Budhkar Marg, Worli, Mumbai-400 025,
Maharashtra, India |
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Factory 1 : |
Textile
Processing Unit B-28, MIDC Industrial
Area, Ranjangaon, Taluka Shirur, District Pune-412 220, |
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Tel. No.: |
91-21-38232700/
38232800 |
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Fax No.: |
91-21-38232600 |
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Factory 2 : |
PSF Plant A-1, Patalganga Industrial
Area, District Raigad, Taluka Khalapur, |
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Tel. No.: |
952192-251096/103 |
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Fax No.: |
952192-250263 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Nusli N. Wadla |
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Designation : |
Chairman |
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Name : |
Mr. Keshub Mahindra |
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Designation : |
Director |
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Name : |
Mr. R. N. Tata |
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Designation : |
Director |
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Name : |
Mr. R. A. Shah |
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Designation : |
Director |
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Name : |
Dr. H. N. Sethna |
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Designation : |
Director |
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Name : |
Mr. S. S. Kelkar |
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Designation : |
Director |
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Qualification : |
M. Com. |
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Date of Appointment : |
09.10.1972 |
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Previous
Employment |
Bank of India – Officer |
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Name : |
Mr. S. Ragothaman |
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Designation : |
Director |
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Name : |
Mr. A. K. Hirjee |
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Designation : |
Director |
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Name : |
Mr. S. M. Palia |
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Designation : |
Director |
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Name : |
Ms. Vinita Bali |
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Designation : |
Director (w.e.f. 30.04.2009) |
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Name : |
Mr. Ness N. Wadia |
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Designation : |
Joint Managing Director |
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Qualification : |
M.S.C |
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Date of Appointment : |
01.01.1994 |
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Name : |
Mr. Durgesh Mehta |
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Designation : |
Joint Managing Director and Chief Financial Officer (w.e.f. 01.04.2010) |
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Name : |
Mr. Ishaat Hussain |
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Designation : |
Director (w.e.f. 01.06.2010) |
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Name : |
Mr. Jeh N. Wadia |
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Designation : |
Director (w.e.f. 01.06.2010) |
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KEY EXECUTIVES
|
Name : |
Mr. J.C. Bham |
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Designation : |
Company Secretary |
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Name : |
Mr. Garry Marshall |
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Designation : |
Vice President – Design (Real Estate) |
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Name : |
Dr. S. C. Basu |
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Designation : |
Chief Operating Officer (Polyester) |
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Name : |
S. Rajappa |
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Designation : |
Chief Operating Officer (Textiles) |
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Name : |
R. Chandrasekharan |
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Designation : |
Vice-President (Corporate Group) |
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Name : |
Mr. Ching Pin Tan |
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Designation : |
Vice-President – Project (Real Estate) |
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Name : |
K. Khona, Vice-President |
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Designation : |
Finance (Corporate Group) |
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Name : |
A. Bhawsingka |
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Designation : |
Vice-President – Domestic Retail Business
(Textiles) |
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Name : |
Bhagaban Kar |
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Designation : |
Vice-President – Manufacturing (Polyester) |
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Name : |
R. K. Gupta |
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Designation : |
Vice-President – Marketing (Polyester) |
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Name : |
J. P. Rathi |
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Designation : |
Vice-President – Commercial (Polyester) |
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Name : |
Mr. Chandresh Makhija |
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Designation : |
Vice President – Business Development
(Land) (Real Estate) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
85386 |
0.21 |
|
|
16751563 |
41.90 |
|
|
396606 |
0.99 |
|
|
396606 |
0.99 |
|
|
17233555 |
43.11 |
|
|
|
|
|
|
793608 |
1.99 |
|
|
2106758 |
5.27 |
|
|
2900366 |
7.25 |
|
Total shareholding
of Promoter and Promoter Group (A) |
20133921 |
50.36 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
3789841 |
9.48 |
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|
143562 |
0.36 |
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|
2580154 |
6.45 |
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|
3132746 |
7.84 |
|
|
9646303 |
24.13 |
|
|
|
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|
1667405 |
4.17 |
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|
|
|
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|
7527575 |
18.83 |
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|
691739 |
1.73 |
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|
313042 |
0.78 |
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|
9627 |
0.02 |
|
|
296639 |
0.74 |
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|
3696 |
0.01 |
|
|
3080 |
0.01 |
|
|
10199761 |
25.51 |
|
Total Public
shareholding (B) |
19846064 |
49.64 |
|
Total (A)+(B) |
39979985 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
545000 |
-- |
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|
21995 |
-- |
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|
566995 |
-- |
|
Total
(A)+(B)+(C) |
40546980 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
TrustsBUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Cloth, Polyester Staple fibre and manmade yarn. |
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Products : |
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Exports : |
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Products : |
·
Polyester Yarn |
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Countries : |
·
USA ·
United Kingdom |
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Imports : |
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Products : |
·
Raw Material |
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Countries : |
·
Japan |
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Terms : |
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Selling : |
L/C, Cash, Credit , TT, DP |
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Purchasing : |
L/C, Cash, Credit , TT, DP |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Spindles |
Qty |
235132 |
60.00 |
-- |
|
Looms |
Qty |
3826 |
165000 |
-- |
|
M. Tons of non woven fabrics per annum |
Qty |
246 |
-- |
-- |
|
Packed
Production |
|
|
|
|
|
Cloth |
Lac Mts. |
-- |
-- |
281.03 |
|
PSF |
M. Tons |
-- |
-- |
156309.28 |
|
PET – Chips |
M. Tons |
-- |
-- |
466.40 |
|
Wastes –PSF |
M. Tons |
-- |
-- |
3024.27 |
GENERAL INFORMATION
|
Customers : |
·
Wholesalers ·
Retailers |
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No. of Employees : |
1500 (Approximately) |
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Bankers : |
·
State Bank of India ·
Axis Bank Limited ·
IDBI Limited ·
State Bank of Hyderabad ·
State Bank of Patiala ·
Bank of India |
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Facilities : |
Notes: A.
Term Loans are secured by first part pari passu
charge on the immovable properties of the Company at Textile Processing Unit
at Ranjangaon, Polyester division at Patalganga, Textile Mills at Mumbai including
Plant and Machinery, buildings and structures thereon and part of the land
admeasuring 76,450 square metres at Spring Mills at Mumbai including
buildings and structures thereon and hypothecation of fixed assets at Textile
Processing Unit at Ranjangaon and the Polyester division at Patalganga. B.
Cash credit, demand loans, packing credit and
Buyer’s Credit from banks are secured by hypothecation of stocks, book debts
and other current assets (excluding the assets at Roha and Spring Mills at
Mumbai) and a second charge on the immovable properties of the Company at
Textile Processing Unit at Ranjangaon, Polyester Division at Patalganga and
Textile Mills at Mumbai and hypothecation of fixed assets at Textile
Processing Unit at Ranjangaon and the Polyester division at Patalganga.
|
|
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Kalyaniwalla and Mistry Chartered Accountants |
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|
|
|
Advocates and Solicitors
: |
Crawford
Bayley and Company Desai and
Diwanji Mulla and
Mulla and Craigie Blunt and Caroe |
|
|
|
|
Subsidiaries Companies: |
·
BDS Urban Infrastructure Private Limited (From
23rd July, 2010 to 11th March, 2011) ·
Bombay Dyeing Real Estate Company Limited
(erstwhile White Horse Real Estate Private Limited) up to 16th March, 2010 |
|
|
|
|
Associates Companies : |
·
Archway Investment Company Limited ·
Pentafi l Textile Dealers Limited ·
Scal Services Limited ·
Bombay Dyeing Real Estate Company Limited
(erstwhile White Horse Real Estate Private Limited) w.e.f. 17th March, 2010 |
|
|
|
|
Joint Venture Companies : |
·
PT. Five Star Textile Indonesia ·
Proline India Limited ·
L and T Bombay Developers Private Limited (Up to
29th July, 2010) |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs. 500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
41004329 |
Equity Shares
(of these, 2,10,23,175 equity shares are allotted as fully paid-up by way of
bonus shares by capitalisation of reserves of Rs. 208.600 millions and share
premium of Rs. 1.700 millions) |
Rs.10/- each |
Rs. 410.000
Millions |
|
Less: |
|
|
|
|
2545259 |
Equity shares
bought back and extinguished in accordance with section 77A of the Companies
Act, 1956 |
|
Rs. (25.500)
millions |
|
Add : |
|
|
|
|
157910 |
Equity shares
issued under Employees' Stock Option Scheme |
|
Rs. 1.600
millions |
|
Add : |
|
|
|
|
1930000 |
Equity shares
allotted on exercise of Warrants issued on Preferential basis to
Promoter/Promoter Group Company) |
|
Rs. 19.300
millions |
|
40546980 |
Equity Shares |
Rs.10/- each |
Rs. 405.400 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
405.400 |
386.100 |
386.100 |
|
|
2] Share Warrants |
267.500 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10609.000 |
1717.400 |
3318.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11281.900 |
2103.500 |
3704.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11464.900 |
16119.700 |
14990.000 |
|
|
2] Unsecured Loans |
908.100 |
1631.400 |
2118.800 |
|
|
TOTAL BORROWING |
12373.000 |
17751.100 |
17108.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
23654.900 |
19854.600 |
20813.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8973.300 |
9521.800 |
9810.300 |
|
|
Capital work-in-progress |
122.300 |
24.700 |
193.100 |
|
|
Incidental expenditure relating to construction/ development |
1933.200 |
2059.200 |
1995.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
601.900 |
601.900 |
602.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
10317.200
|
1442.400
|
3803.100
|
|
|
Sundry Debtors |
2034.600
|
6345.700
|
4059.300
|
|
|
Cash & Bank Balances |
210.200
|
338.900
|
1235.800
|
|
|
Other Current Assets |
6.900
|
6.400
|
43.600
|
|
|
Loans & Advances |
2855.000
|
2782.200
|
2530.200
|
|
Total
Current Assets |
15423.900
|
10915.600 |
11672.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2262.800
|
2340.100
|
2000.000
|
|
|
Other Current Liabilities |
902.200
|
758.500
|
1359.400
|
|
|
Provisions |
234.700
|
170.000
|
114.600
|
|
Total
Current Liabilities |
3399.700
|
3268.600 |
3474.000 |
|
|
Net Current Assets |
12024.200
|
7647.000
|
8198.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
14.000 |
|
|
|
|
|
|
|
|
TOTAL |
23654.900 |
19854.600 |
20813.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
16732.100 |
10918.600 |
10523.300 |
|
|
|
Revenue from real estate activity |
2132.600 |
5509.200 |
2639.300 |
|
|
|
Other Income |
737.000 |
428.200 |
578.700 |
|
|
|
TOTAL (A) |
19601.700 |
16856.000 |
13741.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing & Other Expenses |
16936.100 |
13950.100 |
13234.000 |
|
|
|
Voluntary Retirement Compensation Written
Off |
0.000 |
14.000 |
20.600 |
|
|
|
TOTAL (B) |
16936.100 |
13964.100 |
13254.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2665.600 |
2891.900 |
486.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1781.100 |
2074.600 |
1865.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
884.500 |
817.300 |
(1378.700) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
620.800 |
595.400 |
557.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
263.700 |
221.900 |
(1936.000) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
49.800 |
37.700 |
10.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
213.900 |
184.200 |
(1946.200) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
216.600 |
163.400 |
1885.900 |
|
|
|
Transferred from debenture redemption reserve |
0.000 |
0.000 |
75.000 |
|
|
|
Transferred from general reserve |
0.000 |
0.000 |
193.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
141.900 |
96.600 |
38.600 |
|
|
|
Additional income-tax on distributed profits |
23.000 |
16.000 |
6.600 |
|
|
|
Transferred to general reserve |
21.400 |
18.400 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
244.200 |
216.600 |
163.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
2490.000 |
1470.800 |
1645.300 |
|
|
|
Reimbursement of insurance and freight on exports |
91.700 |
54.900 |
32.000 |
|
|
|
Local sales for exports |
360.800 |
461.500 |
130.700 |
|
|
|
Technical know-how fees |
0.000 |
0.000 |
10.200 |
|
|
|
|
7.400 |
37.200 |
0.000 |
|
|
TOTAL EARNINGS |
2949.900 |
2024.400 |
1818.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
6204.400 |
4050.800 |
1767.600 |
|
|
|
Stores & Spares |
721.700 |
95.500 |
91.400 |
|
|
|
Capital Goods |
8.800 |
13.000 |
139.600 |
|
|
TOTAL IMPORTS |
6934.900 |
4159.300 |
1998.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.54 |
4.77 |
(50.39) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.09
|
1.09 |
(14.16) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.58
|
2.03 |
(18.40) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.08
|
1.09 |
(9.01) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.10 |
(0.52) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.40
|
2.40
|
5.56 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.54
|
3.34
|
3.36 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
(Rs.
in millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors |
2262.800 |
2340.100 |
2000.000 |
COMPANY RESULTS
AND DIVIDEND:
The Company’s
turnover for the year rose to Rs. 20630.000 millions from Rs.17320.000 millions
in the previous year, registering a growth of 19%. The Textile Division
registered a growth of 36% with a turnover of Rs. 3990.000 millions as compared
to Rs. 2940.000 millions in the previous year. Polyester Staple Fibre (PSF)
Division registered a turnover of Rs.14180.000 millions compared to Rs.
8670.000 millions in the previous year, a growth of substantial 64%. The
revenue from Real Estate Division, however, declined from Rs. 5620.000 millions
in the previous year to Rs. 2400.000 millions in the current year.
The Company earned
Profit Before Tax of Rs. 263.700 millions compared to Rs. 221.900 millions in
the previous year. The Profit After Tax for the current year was Rs. 213.900 millions
as against Rs. 184.200 millions in the previous year. The financial performance
of Textile Division has improved significantly compared to the previous year,
even though the Division is yet to become profitable. The demand for textile
products in domestic market improved significantly despite a sharp rise in the
cotton prices which had to be passed on to the consumer. The export market
continued to be sluggish due to poor demand in USA and Europe. The PSF Division
recorded significant increase in top line, and registered a turnaround to
profit. The demand for PSF rose significantly in the context of high cotton
prices, consequent to which price realization improved significantly. The Real
Estate Division focused on completion of the commercial building at Worli and
residential tower at Dadar. The Company also commenced sale in the proposed new
residential towers at Dadar.
The financing cost
was brought down from Rs. 2070.000 millions to Rs. 1780.000 millions despite a
sharp increase in the interest rates due to a significant reduction in the
borrowings on account of realization of sale proceeds of the commercial
building as well as positive cash flow from the PSF business. The Directors
recommend a dividend of Rs. 3.50 per share for the year ended 31st March, 2011,
to be paid, if declared by the members at the ensuing Annual General Meeting,
as compared to dividend of Rs. 2.50 per share paid in the previous year.
TEXTILE DIVISION:
The overall
turnover grew by 36% from Rs. 2940.000 millions to Rs.3990.000 millions led by
the domestic retail business, which reported a rise of over 47% in turnover.
The average realization improved by 16% due to improved mix as also, price
increases taken to offset the impact of sharp rise in raw material prices. The
sales meterage grew by 17% on the strength of a wider design offering,
introduction of new product range in the popular category and more aggressive
institutional sales. Exports continued to be sluggish due to fl at markets in
USA and Europe. The operating loss came down from Rs. 380.000 millions in the
previous year to Rs. 220.000 millions in the current year. The Company
continues to focus on cost reduction measures and improve effi ciency to
turnaround the business.
POLYESTER
DIVISION:
Turnover for the
year rose to Rs. 14180.000 millions from Rs. 8670.000 millions in the previous
year – an increase of 64%. Sharp rise in the cotton prices particularly during
second half of the current year, resulted in a significantly increased demand
for PSF, absorbing the excess capacity of the Industry. The price realization
also
improved
significantly supported by global trends. The Company achieved an average
capacity utilization of 95% compared to 77% in the previous year. The gross
realization per tone improved substantially from Rs. 69,426/ton to Rs.
91,456/ton. The Company focused on expanding its market share both, in domestic
as well as international markets and managed better realization through a
basket of specialty fibre which offered better margins. Further, the conversion
cost was brought down through improved efficiency and higher capacity
utilization. Consequently, the business delivered an operating profit of Rs.
1520.000 millions compared to an operating loss of Rs. 660.000 millions in the
previous year.
REAL ESTATE
DIVISION:
The revenue from
Real Estate activity was Rs. 2400.000 millions as compared to Rs. 5620.000
millions in the previous year. The operating profit for the year was Rs.
860.000 millions as against Rs. 3490.000 millions in the previous year. During
the year, the Company has sold space in the proposed new residential towers to
be constructed at Spring Mills (now renamed Island City Centre), Dadar. The
construction of commercial building at its Worli site was completed and the
same was handed over to Axis Bank Limited for occupation during the year. They
expect to hand over the apartments in the ‘Springs’ shortly after receipt of
necessary approvals. The market for residential property has been adversely
impacted during second half of the year, due to higher interest rates and
delays in approvals at various stages faced by the industry in general.
However, the Company is confident of a positive response to the proposed
residential towers project due to the Company’s brand image as well as quality
of development and construction.
MANAGEMENT
DISCUSSION AND ANALYSIS
TEXTILE BUSINESS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Country earns
about 27% of its foreign exchange through textile export. Considering the slow
global economic recovery so far, there is a need to improve competitiveness of
the sector in the global market. Measures such as extension of 10% tax
exemption on export earnings and export incentive scheme which neutralizes
indirect tax cost, enable industry to face global competition.
The domestic
market is facing impact of severe increase in the raw material prices
especially cotton, which rose over 100% during last year. As the margins in
this Industry are quite modest, the manufacturers had no option but to pass on
this rise to the consumers. These pressure are expected to ease with the
forecast of a normal monsoon and expected increase in cotton acreage and crop.
The Government
recently revealed that the textile sector is expected to grow threefold to
become a $220-billion industry by 2020. In line, the industry expects a special
fiscal stimulus package, including substantial increase in budgetary allocation
to achieve the growth targets.
OUTLOOK
Assuming the
inflation is brought under control and input prices revert to a more modest
level, the domestic market is expected to continue to deliver a healthy growth.
The Company has plans to upgrade its retail network, bring more consumer
relevant products and designs and build upon its brand strength.
Simultaneously, they will initiate steps to improve our supply chain
effectiveness to significantly reduce the cycle time from procurement to sale,
strengthen the quality of the products and reduce the conversion cost. These
initiatives are expected to positively influence the bottom line of the
business.
POLYESTER BUSINESS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Polyester Staple
Fibre (PSF) is produced from two major petrochemical inputs, and used as a
substitute for cotton to manufacture yarn. There are three major producers of
PSF in the country. While the market leader is fully integrated, both, backward
and forward, the other two players including the Company are standalone PSF
manufacturers.
Internationally,
over 60% of the global PSF capacity is located in China, which has a dominant
influence on the industry economics.
The market for PSF
sharply rose during the year 2010-11, especially in second half of the year
when cotton prices started rising rapidly. Consequently, several spinners
shifted from cotton to either polyester or polyester blended yarn. The industry
capacity utilization in percentage terms moved up from mid 70s to 90s during
this period. The global demand for PSF also grew sharply due to high
international cotton prices, as a result of failure of cotton crop in China and
Pakistan.
OUTLOOK
While during the
second half of 2010-11, the Company earned an operating profit of Rs.1430.000
millions on a turnover of Rs. 8780.000 millions, this may not be sustainable in
long term. However, with improved demand and higher capacity utilization, they
expect the business to remain profitable. This will further be aided by the
Company’s focus on innovative product mix and measures for cost reduction.
REAL ESTATE
BUSINESS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
After a sharp rise
in the demand as well as in prices witnessed last year, the residential
property prices remained stagnant during past six months. At higher prices, the
demand appears to be modest especially in Central Mumbai where your Company’s
land parcels are located. Significant rise in interest rate on home loans has
further impacted the demand.
Commercial space
demand for both, sale and lease continues to be sluggish and the prices in
these segments have remained weak.
The media reported
several controversies involving some Builders and Developers, as a result of
which the authorities have become far more stricter in the approval process for
Real Estate Projects. This has resulted in a longer period of scrutiny and approvals
and slowed down both, the construction as well as the marketing processes.
OUTLOOK
The Company
envisages stable to rising prices for their offering because of the unique
business proposition that we are in a position to offer. [The Company would adopt practice of Green
building construction which are more environment friendly. The company would
make use of sustainable material, environmental resources and providing green
amenities to ensure eco-friendly approach].They would be judicious in
the pace of sale of space to avoid adverse impact of any short term reaction in
the market. Further, the medium to long term outlook envisages a more modest
interest regime which is likely to revive the demand and should enable the
Company to deliver a healthy top and bottom line in this business.
TRADE REFERENCE:
·
IOCL
·
Reliance Industries
Limited
·
Mitsubishi Corporation,
Japan
FIXED ASSETS
- Building
- Plant and Machinery
- Furniture
- Motor Vehicles
- Software
WEBSITE DETAILS
BOARD OF DIRECTORS
Nusli Neville
Wadia - Non-Executive Chairman of the Board
Mr. Nusli Neville Wadia Esq, is Non-Executive Chairman of the Board of
the Bombay Dyeing and Manufacturing Company Limited. He is member of the Board
of Directors since 1968. He has served as the Company's Joint Managing
Director. He has contributed actively in the deliberations of organizations
like TEXPROCIL, Millowners' Association (MOA), ASSOCHAM. Has served as Chairman
of TEXPROCIL and MOA. He has served on the Prime Minister's Council on Trade
and Industry. He was the Convenor of the Special Group Task Force on Food and
Agro Industries Management Policy. He was a member of the Special Subject Group
to review regulations and procedures to unshackle Indian Industry and on the Special
Subject Group on Disinvestment.
Vinita Bali -
Non-Executive Director
Ms. Vinita Bali is Non-Executive Director of Bombay Dyeing and
Manufacturing Company Limited. She has experience in marketing and general
management positions in India and overseas, in pre-eminent MNCs, Ms. Bali is a
Bachelor of Arts in Economics and an Masters of Business Administration.
Education
MBA, Jamnalal Bajaj Institute of Management Studies
B Economics, University of Delhi
Business and Economics, Michigan State University
Anil K. Hirjee -
Non-Executive Director
Mr. Anil K. Hirjee Esq., is Non-Executive Director of Bombay Dyeing and
Manufacturing Company Limited. He is Bachelor of Arts (Hons.), Bachelor of Law
(Hons.), Barrister-at-Law, SLOAN Fellow of London Business School (affiliated
to University of London). He has 43 years of experience in different areas of
Business Management and his extends to finance, banking, legal, commercial,
industrial and general administration. Mr. Hirjee has been actively associated
with Charitable Institutions.
Education
LLB, University of London
BA, University of London
S. S. Kelkar –
Non-Executive Director
|
|
Mr. S. S. Kelkar is Non-Executive Director of Bombay Dyeing and Manufacturing
Company Limited. He has a Post-Graduate in Commerce and has been with the
Company for over 36 years and has held various positions in the functional area
of finance, besides having previous banking experience. He retired as Executive
Director (Finance) in 2001 and was appointed as a Non-Executive Director which
position he currently holds.
Keshub Mahindra -
Non-Executive Independent Director
Mr. Keshub Mahindra is Non-Executive Independent Director of Bombay
Dyeing and Manufacturing Company Limited. He is the Chairman of Mahindra and
Mahindra Limited (M and M), is a graduate from Wharton, University of
Pennsylvania, USA. He is a well-known philanthropist who redefined corporate
governance by effectively channelising funds into the social sector. He has
contributed immensely to the cause of building ethical corporations in India
and is currently a part of prestigious organizations and committees. He was
also appointed by the Government of India to serve on a number of Committees
including the Sachar Commission on Company Law and MRTP; Central Advisory
Council of Industries etc. Today, he is an icon, an inspiring business leader
and a distinguished corporate citizen that everyone looks up to. He is a Member
of organizations and committees namely Prime Minister's Council on Trade and
Industry, New Delhi; Member of Apex Advisory Council - ASSOCHAM, Founder Member
of Indo-Hellenic Friendship League; Founder Member of Governing Council,
Integrated Research and Action for Development (IRADe), New Delhi, President -
Centre for Research in Rural and Industrial Development Society, Chandigarh,
Chairman, Governing Body, Centre for Research in Rural and Industrial
Development, Chandigarh, President Emeritus - Employers' Federation of India;
President of the Governing Council - University of Pennsylvania Institute for
the Advanced Study of India, New Delhi, Member, International Advisory Board -
University of Pennsylvania Center for the Advanced Study of India, Philadelphia
and Hon. Fellow - All India Management Association, New Delhi.
Education
BS, The Wharton School of the University of Pennsylvania
Durgesh Mehta -
Chief Financial Officer, Joint Managing Director, Whole-time Director
Mr. Durgesh Mehta is Chief Financial Officer, Joint Managing Director, Whole-time
Director of Bombay Dyeing and Manufacturing Company Limited. Mr. Mehta is a
qualified Chartered Accountant. Post qualification he joined Hindustan Lever
Limited. (now known as Hindustan Unilever Limited.) as a Management Trainee and
worked for over 28 years in that Company. During this period he held positions
in Accounts and Finance, Internal audit, Commercial management and Commodity
Buying. His last job in India was that of Financial Controller of the Company.
Thereafter, he was seconded as Finance Director of Unilever Arabia business of
the parent Company, Unilever, PLC.
Education
University of Delhi
Sam M. Palia - Non-Executive Independent Director
Mr. Sam M. Palia is Non-Executive Independent Director of Bombay Dyeing
and Manufacturing Company Limited. He has experience in development banking.
Retired as Executive Director of IDBI. He was advisor to Industrial Bank of
Yemen and Industrial Bank of Sudan under World Bank assistance programmes.
Erstwhile M.D. of Kerala Industrial and Technical Consultancy Organization Ltd.
Founder and Chairman Emeritus of Rashtriya Gramin Vikas Nidhi. A Graduate in
Commerce and Law, Mr. Palia also holds the Degrees of CAIIB and CUB (London).
Education
B Commerce, Mumbai University
Rajendra A. Shah -
Non-Executive Independent Director
Shri. Rajendra A. Shah is Non-Executive Independent Director of Bombay
Dyeing and Manufacturing Company Limited. He is a Solicitor and a Senior
Partner of M/s. Crawford Bayley and Company, a firm of Solicifors and Advocates.
He specialises in a broad spectrum of corporate laws. He has been a Director on
the Board of the Company since December 1979.
Ratan Naval Tata –
Non-Executive Independent Director
Mr. R. Naval Tata is Non-Executive Independent Director of Bombay Dyeing
and Manufacturing Company Limited. He has a Bachelor of Science in
Architectural and Structural Engineering of Cornell University, U.S.A. He has
also completed an Advanced Management Program at the Graduate School of
Business Administration, Harvard University. He has experience in business and
is the Chairman of several reputed companies in the Tata Group and also
Chairman Emeritus of Nelco Limited. He is also on the Central Board of the
Reserve Bank of India. His Outside Directorships include: Tata Sons Limited
(Chairman), Tata Industries Limited (Chairman), Tata Steel Limited (Chairman),
Tata Motors Limited (Chairman), Tata Chemicals Limited (Chairman), The Indian
Hotels Company Limited (Chairman), The Tata Power Company Limited (Chairman),
Tata Tea Limited (Chairman), Tata Autocomp Systems Limited (Chairman), Tata
Consultancy Services Limited (Chairman), Tata Teleservices Limited (Chairman),
Tata TeIeservices (Maharashtra) Limited (Chairman), Hindustan Aeronautics
Limited, Antrix Corporation Limited and 6 foreign companies.
Education
BS Architecture, Cornell University
Jehangir N. Wadia
- Managing Director, Additional Director
Mr. Jehangir N. Wadia is Managing Director, Additional Director of
Bombay Dyeing and Manufacturing Company Limited. He s a MS - Engineering
Management from Warwick University, England. He has training with the Company
in areas of management, production planning and control. He has been actively
associated with the Wadia Group for over 15 years and has put the Group in the
field of IT. His vision is to create value through innovation, sustainable
execution plan and maintenance strategies. He is also the founder of GoAir, a
low cost airline in India. He also holds the directorships in companies in
India such as Nowrosjee Wadia and Sons Limited, Gherzi Eastern Limited., The
Bombay Burmah Trading Corporation Limited., Britannia Industries Ltd. and
others.
Education
MS Engineering Management, University of Warwick
Ness N. Wadia -
Additional Director
Mr. Ness N. Wadia is Additional Director of Bombay Dyeing and
Manufacturing Company Limited. He served as Joint Managing Director of the
Company till March 31, 2011. He has an Master of Science in Engineering
Business Management (Warwick University, UK). He has been with the Company for over
15 years.
Education
MS , University of Warwick
NEWS
PRESS RELEASE
COMPETITION WATCHDOG TO PROBE FIBRE MAKERS
MINT: 20 JULY 2011
New Delhi, July 20
-- The Competition Commission of India (CCI) has asked its director general, or
DG, to investigate whether top polyester and viscose fibre companies behaved as
a cartel to fix prices, according to two senior officials at the body who did
not want to be identified.
Both are synthetic
fibres used in the apparel business.
"CCI took a
prima facie view on possible cartelization by some 8-10 textile fibre and yarn
manufacturers, which include some big ones such as Reliance Industries Limited,
Grasim Industries Limited, Century Rayon (a division of Century Textiles and
Industries Limited) and Bombay Dyeing and Manufacturing Company Limited. Based
on that we have asked the DG to investigate the case," said one of the two
officials at CCI.
This person added
that it was possible that these companies had colluded on deciding who would
sell to whom and at what price.
The companies
denied the charge.
A senior executive
at Century Rayon said: "Firstly, we are all in different segments so we
cannot collude to fix prices. For instance, Century Rayon is in (the) viscose
filament yarn (business), Grasim is in viscose staple fibre (VSF) and RIL is in
polyester fibre and yarn and Bombay Dyeing also in polyester fibre (PSF)... so,
our products are different and so are our customers."
"Secondly,
our supplies depend on the needs and specifications of our customers and they
chose what to buy from whom and a particular buyer divides his requirements
among various suppliers depending on his needs," added this person who did
not wish to be identified.
A spokesperson for
RIL, whose website claims that it is the largest maker of polyester fibre and
yarn in the world, declined comment.
"Bombay
Dyeing has not received any such notice from the Competition Commission of
India," said Durgesh Mehta, joint managing director and chief financial
officer at Bombay Dyeing and Manufacturing.
"Moreover, we
do not believe that there is any cartel amongst polyester staple fibre
manufacturers. There is no question of profiteering. The company has made
losses in the PSF business in the past three years. (and) ever since we entered
the PSF business," added Mehta.
A Grasim executive
too said the company isn't aware of the investigation. "We reaffirm that
we abide by the laws of the land and are in full compliance with the
regulations," added this person who did not wish to be identified.
If the DG's
investigation finds that these companies have indeed behaved as a cartel it can
impose penalties on them.
CCI's
investigation is based on a complaint admitted by it in June. "The
complainant had said these big players are dictating terms because of which
smaller textile manufacturers are suffering," added the first CCI
official. The commission investigated the complaint and found sufficient
evidence to ask its DG to investigate the case, this person said.
D.R. Mehta,
president of The Textile Association (India), a lobby group for apparel makers,
claims there is cartelization in the business.
Accusing fibre
makers of dictating terms, he alleged that prices weren't market-driven but
fixed by the companies.
To be sure, apparel makers buy from fibre makers and anything that
weakens the ability of the latter to set prices (which a successful
investigation by CCI would) will strengthen the former's position.
BOMBAY DYEING PLANS TURNAROUND
MINT: 21 JUNE 2011
New Delhi, June 21 -- Bombay Dyeing and Manufacturing Company Limited, which has lost one third of its stock value this year, is scripting a three-pronged turnaround strategy-to reduce dependence on its real estate vertical for cash, tap the mass market for textiles, and reduce its debt by half in two-three years.
"The biggest
issue for the group since 2008 was generating cash. This was partially set off
by revenues earned from the real estate division," Durgesh Mehta, joint
managing director and chief financial officer at Bombay Dyeing, said in a
recent interview.
"After
addressing that, the immediate focus was to stop losing money in other
verticals such as textiles and polyester staple fibre (PSF) manufacturing
facility," he said.
Bombay Dyeing
returned to a profit of Rs.184.200 millions in 2009-10 after posting a loss of
Rs.1946.200 millions in the previous fiscal year, hit by the global financial
slowdown. In fiscal 2011, its profit improved slightly to Rs.213.900 millions.
In 2008, Bombay
Dyeing's real estate business contributed 30% to its total revenue; textiles
brought in 20% and PSF, 50%. Mehta wants textiles to account for 30% of the
company's total revenue in the next two years, and to reduce real estate's
contribution to 20%.
"Textile
business is going to be the main thrust," said Mehta, who joined the
company in 2008. "Earlier, Bombay Dyeing was perceived as top-end of the
market, which has only 5% under organized home textile market. Now, we have
decided that we have to be in the other side of spectrum to tap unorganized
side of market. We are broadening our range to low-price segment."
Experts are wary
of the plan.
Sridhar
Ramachandran, director at distress debt resolution advisory firm Brescon
Corporate Advisors, said Bombay Dyeing, established in 1879 by the Wadia
family, has failed to capitalize on its legacy in the textile industry.
"As long as
Bombay Dyeing is restricting itself with retail and outsourcing key functions,
it is tough for the company to achieve materialistic changes," said
Ramachandran, who has spent 21 years handling general, finance and turnaround
management in textile industries across Asia and Africa.
The company has to
"get back to basics and should enter into full-fledged textile cycle
including fabric, weaving and spinning. More importantly, it should also get
into technical textile vertical," he said.
Arvind Singhal,
chairman at retail consultancy Technopak Advisors Private Limited, said
increasing focus on the textile business will be an "uphill task" for
Bombay Dyeing because of competition, "though there is ample opportunities
in the Indian textile sector". Singhal said companies such as Alok
Industries Limited, Welspun Group and Trident Group have done well in the bed
and bath linen segment, where Bombay Dyeing is strong.
"These
companies have developed strong market with a good portfolio of export and
domestic products. Bombay Dyeing has to catch up with these strong competitors
as the company was more focused in to other business verticals such as real
estate till now," Singhal said.
The company is
undeterred.
Debashis Poddar,
chief executive of Bombay Dyeing's textile division, said his company has
started widening its reach by tying up with retail chains such as Big Bazaar,
Lifestyle, Shoppers Stop and D-mart.
Bombay Dyeing
products are now available in at least 2,000 outlets and are aimed at all
sections of customers, with prices ranging between Rs.300 and Rs.10,000, he
said.
Mehta said Bombay
Dyeing is adopting the strategy of consumer goods companies.
"We will take
cues from Britannia that tapped the mass market by introducing Parle and Tiger
brand biscuits. We have inducted Vinita Bali of Britannia into our board to get
consumer insight," said Mehta, who was formerly with the country's largest
consumer goods company by sales, Hindustan Unilever Limited. "All this
will be done without diluting our brand."
Britannia
Industries Limited, also a Wadia group company, sells biscuits and dairy
products across consumer sections. Bali heads the company as its managing
director.
As for borrowings,
Bombay Dyeing wants to lower its debt to about Rs.6000.000 millions in
two-three years. Its debt increased to Rs.18000.000 millions in March 2010 from
about Rs.16000.000 millions two years earlier. But "the debt was brought
down to Rs.12000.000 millions (in March 2011) partly because (of) the revenue
from PSF business and remaining from real estate revenues. Servicing debt will
not be a major issue considering the cash flow is improving," Mehta said.
"With the market prices of fibre improving, we are fetching good prices
for PSF business, that is running in 100% capacity."
On Sunday, PTI
reported that the Competition Commission of India has admitted a complaint that
charges Bombay Dyeing and other large polyester makers with allegedly abusing
their dominant market positions to dictate prices and sale terms to smaller
companies.
OPENING BELL 21 JUNE
MINT: 21 JUNE 2011
New Delhi, June 21 -- Well, there's not going to be any immediate renegotiation in the tax treaty with Mauritius, but then the list of troubles is long enough. Here's a list of things to watch out for before trading starts.
Overnight, stock
markets in the US ralliedafter Luxembourg'sJean-Claude Juncker, who leads the
group of euro-area finance ministers, assured investors that a solution will be
found for Greece's debt crisis. The assurance led to buying in industrial goods
stocks. The S&P 500 closed higher by 0.54%.
The positive
sentiment helped Asian stocks open with gains. Stocks in Japan and South Korea
gained more than 0.5%.
Meanwhile, crude
oil also trended higher on easing Greece concerns. Brent crude at $111.83 is
trading higher by 0.13%.
Back home, the
government might go for a calibrated liberalisation of foreign direct
investment in multi-brand retailing. To begin with, government might permit FDI
in multi-brand retailing only in the six big metros - Delhi, Mumbai, Kolkata,
Chennai, Bangalore and Hyderabad.
ONGC is planning
to invest $7.7 billion to develop its gas wells in KG Basin. The company is
planning to drill eight additional wells and has sought approval for the plan
from the directorate general of hydrocarbons and the petroleum ministry.
ABG group, which
controls ABG Shipyard Limited, has ventured into ship ownership. Over the past
one year, the group has set up four special purpose companies to own and
operate ships. The company is aiming straddle all segments such as offshore
support ships, oil drilling rigs, crude tankers and bulk carriers.
Educomp Solutions
is seeking shareholders' approval to restructure its outstanding foreign
currency convertible bonds worth Rs 3530.000 millions. Educomp sold Rs 80
million worth of FCCBs in 2007 maturing in July 2012. The effective conversion
price promised by Educomp to its bondholders was Rs 832.4 a share, more than
double its current stock price.
Bombay Dyeing and
Manufacturing Company Limited is scripting a turnaround strategy. The company
is looking to reduce its dependence on the real estate vertical for cash, tap
the mass market for textiles and reduce its debt by half in two-three years.
The company is aiming to make textiles its main focus area.
Coal India is in
the process of cancelling all the three bids the company received for
development of its Mozambique block. This is likely to delay exploration of its
Mozambique block as it needs to start the bidding process from the scratch
again.
Finally, State
Bank of India has appointed a deputy managing director to exclusively handle
bad loans.
BOMBAY DYEING POSTS SEPT QTR NET LOSS OF
US$6.8MLN
Asia Pulse
Businesswire: 21 October 2010
MUMBAI, Oct 21Asia Pulse - Indian textile major Bombay Dyeing and Manufacturing (BSE:500020) on Wednesday said its net loss widened to Rs 306.200 millions (US$6.8 million) in the quarter ended September 30, 2010 as compared to the same period last fiscal year.
The company had a
net loss of Rs 110.500 millions in the quarter ended September 30, 2009, Bombay
Dyeing and Manufacturing said in a filing to the Bombay Stock Exchange.
During the period,
the company's total income stood at Rs 4233.600 millions, 13.3 per cent
increase from Rs 3737.200 millions recorded in the corresponding quarter
previous fiscal.
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. 44.41 |
|
|
1 |
Rs. 72.49 |
|
Euro |
1 |
Rs. 63.86 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.