MIRA
INFORM REPORT
|
Report Date : |
16.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
MIRC ELECTRONICS LIMITED |
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Registered Office : |
Onida House, 91, MIDC, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
01.01.1981 |
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Com. Reg. No.: |
11-023637 |
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Capital Investment / Paid-up Capital : |
Rs.141.938
millions |
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CIN No.: [Company
Identification No.] |
L32300MH1981PLC023637 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMM21150D |
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PAN No.: [Permanent
Account No.] |
AAACM8055A |
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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 : |
Manufacturing of Television
Sets, Video Cassettes, Video Cassette Recorders, Audio and Compact Disc
Players |
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No. of Employees: |
1855
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
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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 10227712 |
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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 an
established company having fine track. Financial position of the company appears
to be sound. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can
be considered normal for business 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 (GENERAL DETAILS)
|
Name : |
Mr. Kamlesh |
|
Designation : |
Accounts Manager |
|
Date : |
15.06.2011 |
LOCATIONS
|
Registered Office : |
Onida House, 91,
MIDC, |
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Tel. No.: |
91-22-28200435 /
56975777 |
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Fax No.: |
91-22-28384499 /
28325068 |
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E-Mail : |
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Website : |
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Factory 1 : |
Village Kudus, |
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Factory 2 : |
B-204/205, Phase – II, Noida – 201305,
Uttar Pradesh |
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Factory 3 : |
Khasra No. 158, Vill. |
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Factory 4 : |
Khasra No. 399 to 401 and 405 to 410, 158 Kms Milestone, Delhi - Roorkee Highway - NH-58 Village - Mundiyaki, Pargana - Manglorur, Tehsil - Roorkee, Dist. Hariwar (Uttarakhand) – 247670, India |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Gulu L.
Mirchandani |
|
Designation : |
Chairman &
Managing Director |
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Qualification : |
B.E. (Mechanical) |
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Other Directorship |
He was President
of ‘Consumer Electronics and TV Manufacturers Association’ and Chairman of
the Bombay Chapter of the World Presidents’ Organisation (WPO) |
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Name : |
Mr. Vijay J.
Mansukhani |
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Designation : |
Managing Director |
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Qualification : |
Graduate from the
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Experienced: |
30 Years |
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Other Directorship |
He is the
Managing Director of Adino Telecom Limited, a joint venture with Enkay
Telecommunications ( |
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Name : |
Mr. Manoj K.
Maheshwari |
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Designation : |
Director |
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Qualification : |
B.Sc.(Chemistry)
and Post Graduate in Industrial Management |
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Name : |
Mr. Vimal
Bhandari |
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Designation : |
Director |
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Qualification : |
Chartered
Accountant |
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Other Directorship |
He is currently
An Executive Director on the Board of Infrastructure Leasing and Financial
Services Limited |
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Name : |
Mr. Ranjan Kapur |
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Designation : |
Director |
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Qualification : |
Masters – English
from |
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Other Directorship : |
He is thr
Director of Pedilite Industries Limited, Abbott India Limited, Hitech Plast Limited,
MIC Electronics Limited, Nimbus Communications Limited. |
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KEY EXECUTIVES
|
Name : |
Mr. Anoop Pillai |
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Designation : |
Company Secretary |
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Name : |
Mr. Kamlesh |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2011)
|
Category of shareholder |
Number of Shares |
Percentage |
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(A) Shareholding of Promoter and Promoter Group |
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(1) Indian |
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Individuals / Hindu Undivided Family |
59997785 |
42.33 |
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Bodies Corporate |
1435515 |
1.01 |
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Any others (Specify) |
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Trusts |
16660089 |
11.75 |
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(2) Foreign |
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(B) Public Shareholding |
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(1) Institutions |
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Mutual Funds / Axis |
157700 |
0.11 |
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Financial Institutions / Banks |
33168 |
0.02 |
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Insurance Companies |
1811985 |
1.28 |
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Foreign Institutional Investors |
6925333 |
4.89 |
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(2) Non-Institutions |
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Bodies Corporate |
11460682 |
8.09 |
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Individuals |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
34505569 |
24.34 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
7.347863 |
5.18 |
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Any Others (Specify) |
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Clearing Members |
793763 |
0.56 |
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Non Resident Indians |
616116 |
0.43 |
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Trusts |
110 |
-- |
|
Total |
141751678 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Television
Sets, Video Cassettes, Video Cassette Recorders, Audio and Compact Disc
Players |
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Products : |
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Brand Names : |
IGO |
PRODUCTION STATUS (As on 31.03.2010):-
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Particulars |
Unit |
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Installed Capacity |
Actual Productions |
|
Televisions |
Nos. |
|
3900000 |
1030563 |
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Washing Machines |
Nos. |
|
520000 |
99596 |
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Air-Conditioners |
Nos. |
|
500000 |
6526 |
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Electronic
Turners |
Nos. |
|
3720000 |
1283540 |
- Installed capacity is on single shift basis as certified by the Management upon which the Auditors have relied.
- The licensed capacities are not applicable in view of the exemption from licensing granted under Notification SO 477 (E) dated 25th July, 1991, issued under Industries (Development and Regulation) Act, 1951.
- Sales column is adjusted for loss in transit, internal transfer, salvages and free gifts.
- Company has production facility, for its captive consumption, from its Injection moulding plant (Plastic parts) having installed capacity of 10500 MT and EPS plant (articles of packing goods) having installed capacity of 1000 MT.
- The purchase cost of spares used in services has been included in ‘Cost of Raw Material Consumed’ schedule.
GENERAL INFORMATION
|
No. of Employees : |
1855
(Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
N. M. Raiji and Company Chartered
Accountants |
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Subsidiaries : |
Akasaka Electronics Limited |
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Holding Company : |
Guviso
Holdings Private Limited (amalgamated w.e.f. 15 July, 2008) |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
168020000 |
Equity shares |
Rs.1/- each |
Rs.168.020 millions |
|
2000000 |
5% Cumulative Redeemable
Preference Shares |
Rs.100/- each |
Rs.200.000 millions |
|
10000 |
8% Cumulative
Redeemable Preference Shares |
Rs.100/- each |
Rs.1.000 Million |
|
1000000 |
11%
Non-Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.100.000 Millions |
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Total |
|
Rs.469.020 millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
141751678 |
Equity Shares |
Rs.1/- each |
Rs.141.752
millions |
|
|
Add : Forfeited
Equity Shares |
|
Rs.0.186 millions |
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Total |
|
Rs.141.938 millions |
NOTE:
Of the above
- 9,36,95,620 (Converted into Face value of Re.1) Equity Shares are alloted as fully paid Bonus Shares by capitalisation of General Reserve and Capital Redemption Reserve.
- 14,59,464 Equity Shares were alloted as per the scheme of Amalgamation of Onida Savak Limited with the Company.
- 7,48,96,669 Equity Shares were alloted and 7,48,96,575 Equity Shares were cancelled as per the scheme of Amalgamation of Guviso Holdings Private Limited with the Company.
- 18,91,512 5% Cumulative Redeemable Preference Shares were alloted during the year as per the scheme of amalgamation of Guviso Holdings. Private Limited with the Company and were redeemed.
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 |
141.938 |
67.039 |
141.935 |
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2] Capital Suspense |
0.000 |
264.048 |
0.000 |
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3] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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4] Reserves & Surplus |
2414.990 |
2394.688 |
2400.519 |
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
2556.928 |
2725.775 |
2542.454 |
|
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LOAN FUNDS |
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|
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1] Secured Loans |
572.678 |
748.861 |
1037.226 |
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2] Unsecured Loans |
763.800 |
1303.314 |
958.400 |
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TOTAL BORROWING |
1336.478 |
2052.175 |
1995.626 |
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DEFERRED TAX LIABILITIES |
155.263 |
155.068 |
168.940 |
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TOTAL |
4048.669 |
4933.018 |
4707.020 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2147.814 |
1835.098 |
1897.363 |
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Capital work-in-progress |
2.922 |
255.455 |
19.380 |
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|
|
|
|
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INVESTMENT |
401.400 |
267.811 |
260.018 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2489.991
|
2104.150
|
2925.709
|
|
|
Sundry Debtors |
877.593
|
1068.070
|
1336.880
|
|
|
Cash & Bank Balances |
276.439
|
93.021
|
194.605
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1126.666
|
958.451
|
799.797
|
|
Total
Current Assets |
4770.689
|
4223.692
|
5256.991
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1286.083
|
489.286
|
541.900
|
|
|
Other Current Liabilities |
1808.613
|
1062.139
|
1991.482
|
|
|
Provisions |
179.460
|
97.613
|
193.350
|
|
Total
Current Liabilities |
3274.156
|
1649.038
|
2726.732
|
|
|
Net Current Assets |
1496.533
|
2574.654
|
2530.259
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4048.669 |
4933.018 |
4707.020 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
15019.789 |
14304.290 |
15283.839 |
|
|
|
Other Income |
30.260 |
41.819 |
36.961 |
|
|
|
TOTAL (A) |
15050.049 |
14346.109 |
15320.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Consumed |
5465.289 |
5293.907 |
6382.222 |
|
|
|
Cost of Traded Goods Sold |
6198.085 |
5619.634 |
5421.960 |
|
|
|
Personal Expenses |
754.088 |
671.543 |
660.022 |
|
|
|
Other Expenses |
2140.264 |
1944.665 |
2149.698 |
|
|
|
Increase/(Decrease) in Finished Goods |
(105.421) |
244.398 |
(169.799) |
|
|
|
TOTAL (B) |
14452.305 |
13774.147 |
14444.103 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
597.744 |
571.962 |
876.697 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
173.523 |
284.888 |
231.828 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
424.221 |
287.074 |
644.869 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
197.715 |
185.517 |
239.357 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
226.506 |
101.557 |
405.512 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
42.798 |
12.013 |
59.655 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
183.708 |
89.544 |
345.857 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1549.210 |
1542.499 |
1408.231 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend on Shares |
|
|
|
|
|
|
Preference Dividend |
5.104 |
6.737 |
142.000 |
|
|
|
Equity Dividend |
134.565 |
56.800 |
0.000 |
|
|
|
Tax on Dividend |
23.737 |
10.798 |
24.133 |
|
|
|
Transfer to General Reserve |
18.371 |
8.954 |
45.000 |
|
|
|
Transfer to Capital Redemption Reserve |
189.151 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1361.990 |
1549.210 |
1542.955 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
259.606 |
192.406 |
278.750 |
|
|
TOTAL EARNINGS |
259.606 |
192.406 |
278.750 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
7536.836 |
5241.455 |
5403.532 |
|
|
|
Stores & Spares |
5241.455 |
216.301 |
55.827 |
|
|
TOTAL IMPORTS |
12778.291 |
5457.756 |
5459.359 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.25 |
0.58 |
-- |
|
QUARTERLY
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
4885.200 |
4024.800 |
4480.000 |
5745.600 |
|
Total Expenditure |
4731.500 |
3856.600 |
4289.700 |
5536.300 |
|
PBIDT (Excl
OI) |
153.700 |
168.200 |
190.300 |
209.300 |
|
Other Income |
6.800 |
6.200 |
5.000 |
5.900 |
|
Operating
Profit |
160.500 |
174.400 |
195.300 |
215.200 |
|
Interest |
29.300 |
41.300 |
58.500 |
48.200 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
131.200 |
133.100 |
136.800 |
167.000 |
|
Depreciation |
51.000 |
54.400 |
54.900 |
55.700 |
|
Profit
Before Tax |
80.200 |
78.700 |
81.900 |
111.300 |
|
Tax |
21.500 |
20.300 |
23.200 |
14.200 |
|
Reported PAT |
58.700 |
58.400 |
58.700 |
97.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
58.700 |
58.400 |
58.700 |
97.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.22
|
0.62
|
2.26 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.51
|
0.71
|
2.65 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.27
|
1.68
|
5.67 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.04
|
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.80
|
1.36
|
1.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.46
|
2.56
|
1.93 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
1286.083
|
489.286
|
541.900
|
HISTORY
Subject was incorporated in 1981 as a private limited
company by Gulu Mirchandani, Vijay Mansukhani and Sonu Mirchandani of the Onida
group. Later it transformed as a public limited company in 1992. Subejct is a
market leader in consumer electronics goods; it manufactures the well known
Onida brand of colour televisions (CTVs), Air Conditioners, Washing Machines,
TV-Components and Spares and Electronic Tuners. The company has two subsidiary
companies Akasaka Electronics Limited and Imercius Technologies (
The company was awarded ISO 9001 certification during
1994-95. The company concentrated on reinforcing and improving the penetration
of its sales and after sales support infrastructure. During 1997-98, the
company came out with a new range of products christened 'Techno Value', which
has been launched with considerable success. In 1998-99, it introduced the
WEBCRUISER - the world first internet TV, the trendy TV and PIP in the 25'
segment. In 1999-2000, the company introduced multi-coloured Candy in the 14 inch
TV segment. In the fiscal 2001, it came out with 29KY Thunder series which was
amongst the first 650 watt television set in the world and has embarked on the
process to launch a plasma display tube television in collaboration with
Fujitsu. With effect from 1st April, 2001 Onida Infotech Services Limited was
merged with Subject. In 2001-02 it had
launched the 29 inch Home Theatre, the first to convert a mono recording into a
5.1 output surround sound. In 2003-04, MIRC decided to come out from its non-core
business to strengthen its core business segment. The company sold its Onida
Infotech division during the same year.
Subject rewarded its shareholders with an allotment of bonus
shares in the ratio of one share for every one share held in the company.
During the year 2004-05, one of the group companies, Ondia Savak Limited had
been merged with the company. By this merger, one more feather i.e. Electronic
Tuners added in its product segment. The company wants to take advantages from
the outsourcing businesses provided by international giants. In view of this,
it has enhanced the capacity of televisions from 1.8 million units per annum to
3.0 million units per annum. The company has launched its new model colour
televisions (Oxygen Series and 'Poison' range) and Microwave Ovens in this
period.
Performance
During the year the turnover of the Company increased from
Rs.15177.200 millions to Rs.15683.500 millions. The Profit before tax increased
from Rs.101.500 millions to Rs.226.500 millions registering an increase of 123%
and the Profit after tax increased from Rs.89.500 millions to Rs.187.700
millions registering an increase of 105%. The Directors are confident of
improving the performance in the ensuing year.
Redemption of
Preference Shares
Pursuant to the scheme of amalgamation of Guviso Holdings Private Limited (Transferor Company) with Mirc Electronics Limited (Transferee Company), as sanctioned by the Hon’ble High Court of Bombay, Company had allotted 1891512, 5% Cumulative Redeemable Preference Shares of Rs.100/- each to the shareholders of Transferor Company, which were liable to be redeemed on or after 15th October, 2009. Consequently the same were redeemed on 15th October, 2009. The effect of redemption of preference shares has been given in the annual accounts of the Company for this financial year.
MANAGEMENT
DISCUSSION AND ANALYSIS
The management has pleasure in presenting this report in adherence to the Code of Corporate Governance enacted by the Securities and Exchange Board of India under Clause 49 of the Listing agreement.
Economic Review:
Having withered the global recession
Such expansion is expected to generate greater inflation
than previously expected, requiring a steady series of rate rises from the
Reserve Bank of
According to a study by the McKinsey Global Institute (MGI), ‘Bird of Gold’: The Rise of India’s Consumer Market’, Indian incomes are likely to grow three-fold over the next two decades and India will become the world’s fifth largest consumer market by 2025.
Industry structure
and developments
The consumer durables industry consists of durable goods used for domestic purposes such as televisions, LCD TVs, air conditioners, DVD players, washing machines, refrigerators, microwave ovens etc. The growth in the consumer durables sector has been driven primarily by factors such as boom in the real estate/housing industry, higher disposable income, emergence of the retail industry in a big way coupled with rising affluence levels of a large section of the population.
A shift in consumer preferences towards higher-end,
technologically advanced branded products has been quite discernable. This
shift can be explained by narrowing differentials between the prices of branded
and unbranded products added with the high quality of after sales service
provided by the branded players. The shift has also been triggered by the
availability of foreign branded products in
A combination of changing lifestyles, higher disposable income, greater product awareness and affordable pricing have been instrumental in changing the pattern and amount of consumer expenditure leading to strong growth in the consumer durables industry.
Consumer durables grew at a robust rate of 31.6 percent in January 2010 as against a nominal 2.1 percent posted in the same time last year. In fact, along with the manufacturing sector for capital goods, the manufacturing sector for consumer durables were prime contributors to the robust growth in the Index of Industrial Production (IIP), which grew by 16.7 percent in January 2010.
Opportunities and Threats
The key growth drivers for the Indian consumer durables industry:
- Rise
in the share of organised retail: Approximately 315 hypermarkets are
expected to come into existence in Tier-I and Tier-II cities across India
by the end of 2011, according to a joint study by consultancy firm KPMG
and industry body ASSOCHAM named ‘Reinventing India’s Retail Sector’.
Consultancy firm Technopak has said that the organised modern retail
segment in
- Availability of newer variants of a product: Consumers are spoilt for choice when it comes to choosing products.
- Newer variants of a product help a company in getting the attention of consumers who look for innovation in products.
- Rise in disposable income: The demand for consumer electronics has been rising with the increase in disposable income coupled with more and more consumers falling under the double income families. The growing Indian middle class is an attraction for companies who are out to woo them.
- Product pricing: The consumer durables industry is highly price sensitive, making price the determining factor in increasing volumes, at least for lower range consumers. For middle and upper range consumers, it is the brand name, technology and product features that are important.
- Availability
of financing schemes: Availability of credit and the structure of the loan
determine the affordability of the product.
- Innovative advertising and brand promotion: Sales promotion measures such as discounts, free gifts and exchange offers help a company in distinguishing itself from others.
- Festive season sales: Demand for colour TVs usually pick up during the festive seasons. As a result most companies come out with offers during this period to cash in on the festive mood. This period will continue to be the growth driver for consumer durable companies.
- Emergence of nuclear families.
- Growth of entertainment and Media and the flurry of television channels and the rising penetration of cinemas.
- Electrification
in rural
The consumer durables market in
In response to the aforesaid opportunities the Company expanded its scope from a single product to a multi-product portfolio, resulting in enhanced possibility to occupy a larger shelf space. It prudently invested its resources to drive its innovation and promote its products.
Threats
- With stiff competition, the consumer durables industry faces a persistent pressure on margins due to its inability to pass on input cost rises to consumers. Hence, the company’s future profitability may come under pressure.
- Rising inputs costs of raw materials viz. copper and steel will put huge pressure on the margins. Further with the recent increase in excise duties the pressure will be on manufacturers to pass on the burden to consumers which may lead to reduced demand.
- Exchange schemes and pricing could have a negative industry impact.
- The
entry of cheap Chinese products through organized retail continues to be a
threat to the domestic players like ONIDA. Amid hyped media reports on the
invasion of Chinese goods, the consumer is likely to get confused thereby
resulting in temporary loss of market share and revenues. However, brand
building continues to be the competitive edge in which the Chinese
products seem to lag behind. They don’t have much experience in brand
building, especially in the international context. Therefore, their entry
into
- The focus of consumers is shifting to energy efficient appliances and providing such appliances at a competitive price will be a challenge.
- Margins are under pressure in view of increase in cost of marketing, advertising and after-sales services.
- Cyclicality has triggerred an industry recession.
- The
Company faces stiff competition from South Korean companies like LG and
Samsung. In last few years, they have been increasing their market share
in
Product-wise
performance
There was 11% growth in sale of Onida Air-conditioners
during the year under review. The sale of Washing machines registered a growth
of 5% and the sale of Microwave ovens registered a growth of 8%. The sale of
Outlook
In the times to come, Brand strength, product mix, a well-established distribution network, after-sales service, and technological superiority would be factors which will determine the competitive advantage of industry players.
Market shares are expected to consolidate; however, the pace of consolidation would decline. While major industry players would continue to focus on prices in the low-medium range, advertising and promotional spends would continue to be an integral part of the players’ expenses. The Company has extended its offerings under the Onida brand across products as well as geographical boundaries.
The Company expects to increase its presence in these products and emerge as a leading solutions provider for electronic home improvement goods. The Company has also positioned an exclusive brand ‘IGO’ for the rural market to capture the potential demand from the rural areas, which is growing aggressively.
On the export front the Company intends to aggressively
capitalize its export potential and has invested considerably in research and
development initiatives to create products for diverse geographies. Over the
time the management expects Onida to emerge as a global brand in the consumer
durables industry in
Un-audited
financial results (Provisional) for the quarter ended 30th
September, 2010
(Rs.
In millions)
|
Particulars |
Quarter Ended 31.12.2010 |
Nine Months Ended 31.12.2010 |
|
(a) Net Sales/ Income from
operation |
4478.300 |
13382.600 |
|
(b) Other Operating Income |
1.700 |
7.400 |
|
Total Income |
4480.000 |
13390.000 |
|
2. Expenditure |
|
|
|
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P. |
(232.300) |
(361.600) |
|
b. Consumption of Raw-Materials |
1919.300 |
5139.700 |
|
c. Purchase of Traded Goods |
1769.200 |
5587.400 |
|
d. Employees Cost |
236.900 |
704.000 |
|
e. Depreciation |
64.900 |
160.300 |
|
f. Other Expenditure |
596.600 |
1808.300 |
|
g. Total |
4844.600 |
13038.100 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
135.400 |
351.900 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
6.000 |
18.000 |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
140.400 |
369.900 |
|
6. Interest |
58.500 |
129.100 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
81.900 |
240.800 |
|
8. Exceptional Items |
0.000 |
0.000 |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
81.900 |
240.800 |
|
10. Tax Expenses |
23.200 |
65.000 |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
68.700 |
175.800 |
|
12. Extraordinary Items |
0.000 |
0.000 |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
68.700 |
175.800 |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
141.700 |
141.700 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of Previous
Accounting Year |
|
|
|
16. Earning per Share (EPS) |
0.41 |
1.24 |
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
63653289 |
63653289 |
|
b) Basic and diluted EPS after extraordinary items for the period,for
the year to date and for the previous year (not annualised) |
44.90% |
44.90% |
|
a) Pledged/Encumbered |
|
|
|
- Number of shares |
62266702 |
62266702 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
66.95% |
66.95% |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
36.89% |
36.89% |
|
b) Non-encumbered |
|
|
|
- Number of shares |
26809687 |
26809687 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
33.05% |
33.05% |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
18.21% |
18.21% |
NOTE :
- The above
results as reviewed by the Audit Committee, have taken on record at the
board of the directors held on 28th January, 2011.
- The statutory
Auditors have carried out a limited review of the Unaudited financial
results for the quarter ended on 31st December 2010
- The company
is mainly engaged in consumer durables business which as per accounting
standard (As-17) segment reporting is considered the only reportable
segment, there is no separately identify geographical segment
- During the
quarter 31 investor complaints were received and resolved, no complaints
were pending either at the beginning or at the end of the quarter.
- Previous
period’s figures have been rearranged / regrouped wherever necessary.
MILESTONES:
1981:
MIRC Electronics Private Limited was established
1982:
CTV production started at Nand Bhavan, Mumbai
1983:
Technical collaboration with JVC,
1985:
Established in-house R&D wing
1986:
Production expanded and moved to a new factory at Kalina
1987:
Moved to their own factory building "ONIDA HOUSE"
Iwai, Speaker plant commences its operation
1990:
Tuner plant commences operation
1991:
Akasaka, PCB plant commences its operation
New CTV manufacturing plant at Vasai commences operations
1992:
Crossed 1 million CTV sales
1994:
Moved to a fully automated Plant of 600K CTV per year at
Wada
1995:
ISO 9001 certification obtained from BVQI
1998:
Award for excellence in electronics by ministry of IT
1999:
First in
2000:
Launched the KY Thunder, Profile Series
2001:
AV Max award for best CTV.
Launched Onida Black, flat CTV range
Multimedia projectors launched
Commenced project to expand CTV capacity to 1 million
2002:
Completed plant expansion project to increase capacity from
600K CTVs to 1.2 million CTV's per year.
Launched 'KY Theatre' with circle surround sound, the first
complete Home Theatre package
Launch of 'Igo'- the economy brand
Launched VCD player
2003:
Launched world's first LCD remote 'i-Control'
Launched Air-conditioners
Launched Rear Projection TV, Plasma TV & DVD Players
Launched Fully Automatic front loading Washing Machines
A MIRC product is getting sold every 27 seconds
Operations started in
2004:
Launch of the 'Oxygen Series' CTV
Crossed Sale of 250,000 CTV's in October month
Launch of Microwave Owens
Mr. Gulu Mirchandani, CMD awarded 'Man of Electronics for
the year' by CETMA
2004-
05:
Achieved 1.20 million CTV sales
2005:
Launch of 'POISON' range of CTV's
AMALGAMATION
OF GUVISO HOLDINGS PRIVATE LIMITED WITH MIRC ELECTRONICS LIMITED
The directors wish to inform that Guviso Holdings Private Limited
the Holding company of the company, got amalgamated with the company pursuant
to an order dated May 02, 2009 passed by the Hon’ble High Court of Bombay. The
scheme of amalgamation was filed with the Registrar of Companies,
Pursuant to the scheme of amalgamation, 74896575 equity
shares of Re.1/- each held by Guviso Holdings Private Limited (Transferor
Company) in subject (Transferee Company) got cancelled and, 74896669 equity
shares of Re.1/- each and 1891512, 5% Cumulative Redeemable Preference Shares
of Rs.100/- each were allotted to the shareholders of Transferor Company as per
the exchange ratio stipulated in the Scheme of amalgamation and accordingly the
Company had applied to the Stock Exchanges for approval of listing and trading
of the said shares. The Stock Exchanges vide their letters dated June 18, 2009
have permitted the trading in equity shares of the Company so allotted.
SUBSIDIARY
COMPANY
The audited statement of accounts of Company’s subsidiary
viz. Akasaka Electronics Limited together with the Report of Directors and
Auditors as required under section 212 of the Companies Act, 1956, are attached
to this report.
ECONOMIC
REVIEW:
According to industry experts the Indian economy is expected
to recover from the slowdown in the second half of 2009-10, thanks to the
strong domestic market and improving financial sector. The turnaround is
expected from domestic activity data, adequate liquidity in the system,
substantial easing of financial conditions and decline in interest rates.
Foreign Institutional Investors (FII) are back in the market
and according to published reports investment by FIIs rose to US $1.8 billion
in April ’09 after falling to US $1.2 billion in March ’09.
Despite the global economic slump and severe credit crunch,
the government is optimistic that there won’t be any decline in foreign direct
investment in
INDUSTRY
STRUCTURE AND DEVELOPMENTS
The Indian consumer durables industry has witnessed a
considerable change in the past couple of years. Changing lifestyle, higher
disposable income coupled with greater affordability and a surge in advertising
has been instrumental in bringing about a sea change in the consumer behaviour
pattern.
This industry consists of durable goods used for domestic
purposes such as televisions, washing machines, refrigerators, microwave ovens
etc. The growth in the consumer durables sector has been driven primarily by
factors such as boom in the real estate/housing industry, higher disposable
income, emergence of the retail industry in a big way coupled with rising
affluence levels of a large section of the population.
A shift in consumer preferences towards higher-end,
technologically advanced branded products has been quite discernable. This
shift can be explained by narrowing differentials between the prices of branded
and unbranded products added with the high quality of after sales service
provided by the branded players. The shift has also been triggered by the
availability of foreign branded products in
OPPORTUNITIES
AND THREATS
The key growth drivers for the Indian consumer durables
industry:
·
Rise in disposable income: The demand
for consumer electronics has been rising with the increase in disposable income
coupled with more and more consumers falling under the double income families.
The growing Indian middle class is an attraction for companies who are out to
woo them.
·
Availability of newer variants of a
product: Consumers are spoilt for choice when it comes to choosing products.
Newer variants of a product helps a company in getting the attention of
consumers who look for innovation in products.
·
Product pricing: The consumer durables
industry is highly price sensitive, making price the determining factor in
increasing volumes, at least for lower range consumers. For middle and upper
range consumers, it is the brand name, technology and product features that are
important.
·
Availability of financing schemes:
Availability of credit and the structure of the loan determine the
affordability of the product.
·
Rise in the share of organised retail:
Rise in organised retail will set the growth pace of the Indian consumer
durables industry. According to a recent study, organized retail accounts for
around 5% of the estimated US $ 350 billion Indian retail market, and is
expected to grow to 10.4% of overall retail market by 2012.
·
Innovative advertising and brand
promotion: Sales promotion measures such as discounts, free gifts and exchange
offers help a company in distinguishing itself from others.
·
Festive season sales: Demand for colour
TVs usually pick up during the festive seasons. As a result most companies come
out with offers during this period to cash in on the festive mood. This period
will continue to be the growth driver for consumer durable companies.
The consumer durables market in
In the times to come the Consumer durables sector is poised
for a quantum leap due to technological improvements, falling prices due to
competition, aggressive marketing and declining import tariffs.
The changing dynamics of consumer behaviour indicate that luxury goods are now being perceived as necessities with higher disposable incomes being spent on lifestyle products.
In response to the aforesaid opportunities the company expanded its scope from a single product to a multi-product portfolio, resulting in enhanced possibility to occupy a larger shelf space. It prudently invested its resources to drive its innovation and promote its products.
THREATS
·
With stiff competition, the consumer
durables industry faces a persistent pressure on margins due to its inability
to pass on input cost rises to consumers. Hence, the company’s future
profitability may come under pressure.
·
Exchange schemes and pricing could have
a negative industry impact.
·
The entry of cheap Chinese products
through organized retail continues to be a threat to the domestic players like
ONIDA. Amid hyped media reports on the invasion of Chinese goods, the consumer
is likely to get confused thereby resulting in temporary loss of market share
and revenues. However, brand building continues to be the competitive edge in
which the Chinese products seem to lag behind. They don’t have much experience
in brand building, especially in the international context. Therefore, their
entry into
·
Cyclicality has triggerred an industry
recession.
·
Mirc faces competition from South
Korean companies like LG and Samsung. In last few years, they have been
increasing their market share in
PRODUCT-WISE
PERFORMANCE
The company witnessed a moderate de-growth in sales of
colour televisions of 8%. The growth in sale of Air conditioners remained flat.
The sale of Washing machines registered a small growth of 3%.
OUTLOOK
In the times to come, Brand strength, product mix, a well
established distribution network, after-sales service, and technological
superiority would be factors which will determine the competitive advantage of
industry players. Market shares are expected to consolidate; however, the pace
of consolidation would decline. While major industry players would continue to
focus on prices in the low-medium range, advertising and promotional spends
would continue to be an integral part of the players’ expenses.
The Company has extended its offerings under the Onida brand
across products as well as geographical boundaries. The company expects to
increase its presence in these products and emerge as a leading solutions
provider for electronic home improvement goods. The company has also positioned
an exclusive brand ‘IGO’ for the rural market to capture the potential demand
from the rural areas, which is growing aggressively.
On the export front the Company intends to aggressively
capitalize its export potential and has invested considerably in research and
development initiatives to create products for diverse geographies. Over the
time the management expects Onida to emerge as a global brand in the consumer
durables industry in
OPERATIONAL
AND FINANCIAL PERFORMANCE
The financial year 2008-09 was a year of challenges and
uncertainties for businesses across various segments of industry with the
financial crisis, volatile prices, sharp movement in currencies, crashing stock
markets and severe liquidity crisis. The company too was not insulated from
these challenges as the business had its impact on overall margins. The
exchange rate fluctuation led to a fair degree of strain on the company’s
operating efficiencies and profit as well. During the financial year 2008-09 the
turnover of the Company stood at Rs.15177.200 Millions as against Rs.16550.600
Millions in the previous financial year 2007-08. The profit before tax stood at
Rs.101.500 Millions as against Rs.405.500 Millions in previous financial year.
The profit after tax for the financial year ended March 31, 2009 stood at
Rs.89.500 Millions as against Rs.345.900 Millions in previous financial year.
The company has taken adequate measures to improve its performance in the
coming year and the Board is confident of better results in the financial year
2009-10.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL
RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.
At subject, human capital is considered to be the most
valuable resource, since people deliver results. People are nurtured,
developed, motivated and rewarded to ensure business competency, develop them
continuously, and keep its employees motivated through implementation of
various HR processes.
The objective of the Human resource initiative at Mirc is
that all Onidians will collectively perform to realize the goals of the company
and catapult the organization to the elite league of companies which grace the
hall of fame of the corporate world.
The company’s H.R. Cell takes a proactive role in responding
to genuine grievances of employees to foster a warm positive relationship
between the management and employees, increase job satisfaction and ensure that
employees can add value to their lives.
The Human resource approach of the Company embodies the
following:
·
Empowering their employees to innovate
in an open, informed and challenging work place. Encouraging the richness of
ideas, approaches and points of view within a work environment conducive to
both superior performance and personal fulfillment.
·
Conducting and facilitating need-based
training empowered by structured career plans that optimize individual
potential.
·
A unique variable pay plan linked to
company’s profitability for executives.
·
A highly conducive and enabling work
atmosphere. A well-designed safe campus
·
Stress upon lateral thinking across all
levels. The management is continuously working on the development of human
capital to enhance responsiveness, efficiency and effectiveness in an
ever-changing business environment. Employee performance is continuously
evaluated against agreed KRAs as well as feedback on behavioural competencies.
The company had about 1855 employees on its roll as on 31st March 2009.
FIXED ASSETS
·
R and D Software
·
Leasehold land
·
Freehold land
·
Buildings
·
Plant and Machinery and Electrical Fittings
·
Furniture, Fixtures and Equipments
·
Motor Vehicles
·
R and D - Building
·
R and D- Plant and Machinery and Electrical Fittings
·
R and D – Furniture, Fixture and Equipments
WEBSITE DETAILS:
PROFILE
Subject is the
maker of the Onida brand of TVs has grown a number of connectivity options in
its backyard. There are VSAT links, leased lines, VPN links, ISDN links, RF
(Radio Frequency) links, and dial up links. The company is now able to share
its SAP R/3 data among 140 users across 38 locations nationwide without the
fear of losing valuable transaction and operations data in a communications
breakdown.
Since MEL runs an
ERP which demands data be available all the time and has users sprinkled in
multiple locations nationwide, it had to ensure multiple connectivity options.
And the initiative has paid off very well.
Subject was founded
in 1981 and began computerization five years ago by deploying LANs at various
locations with CAT 5 structured cabling. RF links were deployed in a couple of
years between its offices in Mumbai and Thane to share information.
The RF links
connect the HO (Head Office) to two locations in Mumbai, the Mumbai branch
office and the Onida Infotech building. Bandwidth of the RF links is 1.5 Mbps
and they are backed up with dialup links. The RF equipment includes wireless
transceivers and wireless modems from Wi-LAN.
The Company uses
HCL Infinet’s network to support a 64 Mbps leased line which connect to 20
branch offices nationwide. Each link is backed up with 128K ISDN links. The
company also uses the service provider’s VPN for security. A firewall sits
between the mail server at the HO and the Internet. A 128K DSL and a back up 64K DSL link help
make the connection.
The Company earlier
had a PAMA link between the HO and the
EXPORTS
Onida with its Sales and Marketing office in
The shipments to the Gulf contribute almost 65 per cent of Onida's export
revenue, while shipments to the fast growing East African market (
Home Theatres and DVD players have been introduced in these markets to
strengthen the Onida brand presence. These products have customized models with
local language user interfaces in line with its geographies of focus. Onida
models are now available with Arabic, Persian and Russian OSD (menu).
Onida products have been favored by hypermarkets like Lu Lu Centres,
Carrefours, Geants and Dasmans in GCC countries.
In addition to the Gulf countries ONIDA has now a sizeable presence in
Apart from Television Exports to
EXPORT PLANS
Onida plans to expand its international presence by:
·
Developing a production facility in the
CIS countries.
·
Launching Home Theatre Systems,
Microwave Ovens, Vacuum Cleaners and Washing machines in the CIS markets in the
near future.
·
Launching the "Onida" range
in
DIRECTORS PROFILE:
MR.
GULU L. MIRCHANDANI
Mr. Gulu L. Mirchandani, the Chairman and Managing Director
of subject is an alumnus of BITS, Pilani and holds a degree in BE (Mechanical).
Mr. Mirchandani is closely involved with the development of corporate strategy
and formulating, incubating and delivering emerging technologies and services
in the area of televisions and other products of the company. Mirc won the
award for excellence in Electronics under his able leadership in 1999 from the
Ministry of Information Technology, the Government of India. Mr. Mirchandani
has held several key positions in the industry. He was appointed the President
of Consumer Electronics and TV Manufacturers Association (CETMA) for two
consecutive years in 1992 and 1994. He was also appointed as the Chairman of
the
MR.
VIJAY J. MANSUKHANI
Mr. Vijay J. Mansukhani is a co-promoter of subject and is
also its Managing Director. He has been associated with Mirc since its
inception in 1981. A graduate from the
MR.
VIMAL BHANDARI
Mr. Vimal Bhandari is a Chartered Accountant from the
Institute of Chartered Accountants of India (ICAI),
MR.
RANJAN KAPUR
Mr. Ranjan Kapur holds a Masters degree in English from
MR.
MANOJ MAHESHWARI
Mr. Manoj Maheshwari is an entrepreneur specialising in
consumer products, pharmaceuticals and chemical industries. He is a graduate
from
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. 44.68 |
|
|
1 |
Rs. 73.04 |
|
Euro |
1 |
Rs. 64.29 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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.