1. Summary Information
|
|
|
Country |
|
|
Company Name |
GHCL LIMITED |
Principal Name 1 |
Mr. Sanjay Dalmia |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. R. S. Jalan |
|
|
|
Registration # |
04-006513 |
|
Street Address |
GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad-380009, |
||
|
Established Date |
14.10.1983 |
SIC Code |
-- |
|
Telephone# |
91-118-4535335 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-118-4535209 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Disodium Carbonate (Soda Ash) |
|
|
# of employees |
750 (Approximatley) |
Product Name 2 |
-- |
|
Paid up capital |
Rs. 1,000,192,860/- |
Product Name 3 |
-- |
|
Shareholders |
Shareholding
of Promoter and Promoter Group 17.04% Public Shareholding 82.96% |
Banking |
State Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
27 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Ba (46) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary
|
-- |
Indian |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
4,956,550,000 |
Current Liabilities |
2,388,603,000 |
|
Inventories |
3,109,648,000 |
Long-term Liabilities |
13,140,885,000 |
|
Fixed Assets |
20,240,804,000 |
Other Liabilities |
1,577,824,000 |
|
Deferred Assets |
000 |
Total Liabilities |
17,107,312,000 |
|
Invest& other Assets |
648,791,000 |
Retained Earnings |
10,848,288,000 |
|
|
|
Net Worth |
11,848,481,000 |
|
Total Assets |
28,955,793,000 |
Total Liab. & Equity |
28,955,793,000 |
|
Total Assets (Previous Year) |
29,835,713,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
11,915,843,000 |
Net Profit |
1,408,455,000 |
|
Sales(Previous yr) |
12,148,188,000 |
Net Profit(Prev.yr) |
1,042,980,000 |
MIRA
INFORM REPORT
|
Report Date : |
07.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
GHCL LIMITED |
|
|
|
|
Registered Office : |
GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad-380009, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
14.10.1983 |
|
|
|
|
Com. Reg. No.: |
04-006513 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24100GJ1983PLC006513 |
|
|
|
|
IEC No.: |
0588091529 |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACG5609C |
|
|
|
|
Legal Form : |
Public Limited Liability Company. Company’s Shares are Listed on Stock
Exchange. |
|
|
|
|
Line of Business : |
Manufacturer of Soda Ash and Salt (Industrial and Edible). |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 47000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow But Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established Company having satisfactory track. Trade
relations are fair. Financial Position is satisfactory. Payments are reported
as slow but correct. 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.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Shashi Gupta |
|
Designation : |
Accounts Manager |
|
Date : |
10.11.2010 |
LOCATIONS
|
Registered Office : |
GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad-380009, |
|
Tel. No.: |
91-118-4535335 |
|
Fax No.: |
91-118-4535209 |
|
E-Mail: |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Corporate / Head Office : |
B-38, Institutional Area, Sector – 1, Noida-201301, |
|
Tel. No.: |
91-120-2535335 / 2536572 |
|
Fax No.: |
91-120-2535209 |
|
|
|
|
|
|
|
Plant : |
Soda ash Plant, Village Sutrapada, Near Vereval, District Junagadh –
362275, |
|
|
|
|
Plant : |
Salt Works and Refinery
|
|
|
|
|
Textile Division : |
|
|
|
|
|
IES Division : |
C – 39, Sector – 58, Noida, |
|
|
|
|
Energy Division : |
|
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Sanjay Dalmia |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Anurag Dalmia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Neelabh Dalmia |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. B.C. Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. C. Srivastava |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. R. S. Jalan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Tej Malhotra |
|
Designation : |
Senior Executive Director (Operations) |
|
|
|
|
Name : |
Mr. Raman Chopra |
|
Designation : |
Executive Directorr (Finance) |
|
|
|
|
Name : |
Mr. Naresh Chandra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahesh Kheria |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjiv Tyagi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.H. Ruparell |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K.C. Jani |
|
Designation : |
Nominee (IDBI) |
|
|
|
|
Name : |
Mr. R W Khanna |
|
Designation : |
Nominee (Exim Bank) |
|
|
|
|
Name : |
Mr. Bhuwneshwar Mishra |
|
Designation : |
Company Secretary and General Manager |
|
|
|
|
Name : |
Mr. Mnoj Kumar Iswar |
|
Designation : |
Senior Executive Secretary |
|
|
|
|
Name : |
Mr. Shashi Gupta |
|
Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
11,384,369 |
11.38 |
|
|
152,000 |
0.15 |
|
|
152,000 |
0.15 |
|
|
11,536,369 |
11.53 |
|
|
|
|
|
|
5,507,900 |
5.51 |
|
|
5,507,900 |
5.51 |
|
Total shareholding of Promoter and Promoter Group (A) |
17,044,269 |
17.04 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
21,913 |
0.02 |
|
|
146,329 |
0.15 |
|
|
6,208,120 |
6.21 |
|
|
305,871 |
0.31 |
|
|
204,940 |
0.20 |
|
|
204,940 |
0.20 |
|
|
6,887,173 |
6.89 |
|
|
|
|
|
|
35,845,311 |
35.84 |
|
|
|
|
|
|
22,963,009 |
22.96 |
|
|
12,840,433 |
12.84 |
|
|
4,439,091 |
4.44 |
|
|
138,441 |
0.14 |
|
|
3,900 |
- |
|
|
241,242 |
0.24 |
|
|
2,056,915 |
2.06 |
|
|
592,939 |
0.59 |
|
|
1,349,464 |
1.35 |
|
|
56,190 |
0.06 |
|
|
76,087,844 |
76.07 |
|
Total Public shareholding (B) |
82,975,017 |
82.96 |
|
Total (A)+(B) |
100,019,286 |
100.00 |
(1)
Indian
Bodies
Corporate
TrustsBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Soda Ash and Salt (Industrial and Edible). |
||||||
|
|
|
||||||
|
Products : |
|
||||||
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|
|
||||||
|
Terms : |
|
||||||
|
Selling : |
Cash |
||||||
|
|
|
||||||
|
Purchasing : |
Cash |
PRODUCTION STATUS
(AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Soda Ash |
MT |
850000 |
676069 |
|
Refined Salt |
MT |
200000 |
26589 |
|
Yarn Spindles |
NOS |
140000 |
11471 |
|
Cloths –Job Work+ Own Production |
MTRS (‘000) |
-- |
37903 |
|
Bicarb – (Production from Soda Ash) |
MT |
-- |
20161 |
|
Bed Sheet Sets – Job Works |
MTRS (‘000) |
-- |
9146 |
|
Sodium Bicarbonate |
MT |
27000 |
-- |
|
Wind Turbine Generators |
MW PER HOUR |
8 |
-- |
|
Cloth Looms |
NOS |
96 |
-- |
|
Cloth Processing |
MTRS (‘000) |
34000 |
-- |
GENERAL INFORMATION
|
Customers : |
End Users and
OEM’s |
||||||||||||||||||
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|
|
||||||||||||||||||
|
No. of Employees : |
750 (Approximately) |
||||||||||||||||||
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|
||||||||||||||||||
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Bankers : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
Note: 1) Rupee Term Loans from Banks I Institutions have been secured
against :- a) Loan aggregating to Rs. 1893.748 Millions is secured by extension of first charge on
Pari Passu basis, by way of equitable mortgage on immovable properties of the
Soda Ash Division situated at Sutrapada, Veraval, and extension of hypothecation charge on movable assets, both present
and future of the company Soda Ash division situated at village — Sutrapada,
Veraval in b) Loan aggregating to Rs. 564.536 Millions is secured by extension of
first charge on Pari Passu basis, by way of equitable mortgage on immovable
properties of the Soda Ash Division situated at Sutrapada, Veraval, Gujarat
and extension of first Hypothecation charge on Pari Passu basis, on movable
assets, both present and future of the company’s Soda Ash division situated at
village — Sutrapada, Veraval in Gujarat with other term lenders of the said
project. c) Loan aggregating to Rs. 287.789 Millions is secured by exclusive charge on the
specific fixed assets created out of the proceeds of the loan for Company’s
Soda Ash Division situated at village Sutrapada, Veraval in d) Loan aggregating to Rs. 217.335 Millions is secured by exclusive charge on the
specific fixed assets created out of the proceeds of the loan for Company’s
Soda Ash Division situated at village Sutrapada, Veraval in e) Loan aggregating to Rs 1833.333 Millions is secured by way of first Pari Passu
charge on movable fixed assets of Soda Ash Division situated at village
Sutrapada, Veraval in f) Loan aggregating to Rs. 1263.186 Millions is secured by first
charge on Pari Passu basis by way of equitable mortgage on fixed assets of
the Textile Division situated at Vapi, Gujarat and hypothecation of movable
assets both present and future of the Company’s Textile Division at Vapi, g) Loan aggregating to Rs. 49.352 Millions is secured by exclusive charge
on the specific fixed assets created out of the proceeds of the loan for
Company’s Home Textile Division situated at Vapi in h) Loan aggregating to Rs. 594.063 Millions is secured by first charge
on Pari Passu basis by way of equitable mortgage on i) Loan aggregating to Rs. 97.140 Millions is secured by exclusive
charge on the specific fixed assets created out of the proceeds of the loan
for Company’s Textile Division situated at j) Loan aggregating to Rs. 1000.446 Millions is secured by extension
of first charge on Pari Passu basis on k) Loan aggregating to Rs. 63.503 Millions is secured by an exclusive
first charge by way of equitable mortgage on immovable properties pertaining
to Wind Mill Division — I situated at lrukkandurai village, Tirunelveli
District in the state of Tamilnadu and hypothecation of all present and
future movable assets of Wind Mill Division — The said loan is availed under
Technology Upgradation Fund Scheme for Textile. I) Loan aggregating to Rs. 89.773 Millions is secured by an exclusive
first charge on all present and future movable assets of Wind Mill Division —
II situated at Chinnaputhur, near Poolavadi in the state of Tamilnadu The
said loan is availed under Technology Upgradation Fund Scheme for Textile. m) Loan aggregating to Rs. 250.000 Millions is secured by an exclusive
first charge on all present movable assets of Edible Salt division situated
at Thiruporur, Vedaranyam and Industrial Salt Division. 2) Working Capital Loans / Bill discounting from Banks / Financial
Institutions are secured by way of hypothecation of stock-in-trade and book
debts of Soda Ash I Home Textile Division / Edible Salt / Textile Divisions
and second charge on fixed assets of Soda Ash Division I Home Textile
Division and Textile Division, both present and future. 3) Specified movable assets referred to in the above notes include all
movable assets of Soda Ash Division, Home Textile Division and Textile
Division both present and future but subject to prior charge created and / or
that may be created in favour of Company’s Bankers on stock-in-trade for
securing borrowing for working capital. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Chartered Accountant
Chartered Accountant |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
175000000 |
Equity Shares |
Rs.10/- each |
Rs.1750.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100019286 |
Equity Shares |
Rs.10/- each
|
Rs.1000.193
Millions |
Notes:
a) 21,250,400 Equity Shares of Rs.10/- each fully paid up were issued to
Financial Institution at par on conversion of loan of Rs.212.50 Million.
b) 1,838,011 Equity Shares of Rs.10/- each fully paid up were issued
pursuant to the Scheme of Amalgamation for consideration other than cash.
c) 430,875 Equity Shares of Rs.10/- each fully paid up were allotted
during the year on conversion of Foreign Currency Convertible Bonds.
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 |
1000.193 |
1000.193 |
1000.190 |
|
|
2] Share Application Money |
0.000 |
0.000 |
71.570 |
|
|
3] Reserves & Surplus |
10848.288 |
11140.097 |
4025.220 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11848.481 |
12140.290 |
5096.980 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11097.717 |
9442.975 |
8261.770 |
|
|
2] Unsecured Loans |
740.778 |
450.000 |
204.290 |
|
|
3] Unsecured Foreign Currency Convertible Bonds |
1302.390 |
3449.980 |
3170.270 |
|
|
TOTAL BORROWING |
13140.885 |
13342.955 |
11636.330 |
|
|
DEFERRED TAX LIABILITIES |
1341.112 |
1534.342 |
1388.040 |
|
|
|
|
|
|
|
|
TOTAL |
26330.478 |
27017.587 |
18121.350 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
20240.804 |
20317.800 |
10131.440 |
|
|
Capital work-in-progress |
36.291 |
203.555 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
591.784 |
385.976 |
1388.210 |
|
|
ADVANCES AGAINST CAPITAL EXPENDITURE |
20.512 |
100.506 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3109.648
|
2602.523 |
2601.530 |
|
|
Sundry Debtors |
1517.024
|
1187.448 |
1353.280 |
|
|
Cash & Bank Balances |
249.748
|
469.451 |
239.140 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
3189.778
|
4567.278 |
4519.980 |
|
Total
Current Assets |
8066.198
|
8826.700 |
8713.930 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1735.991
|
1910.931 |
|
|
|
Other Current Liabilities |
652.612
|
669.411 |
1831.370 |
|
|
Provisions |
236.712
|
237.784 |
284.210 |
|
Total
Current Liabilities |
2625.315
|
2818.126 |
2115.580 |
|
|
Net Current Assets |
5440.883
|
6008.574 |
6598.350 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.204 |
1.176 |
3.350 |
|
|
|
|
|
|
|
|
TOTAL |
26330.478 |
27017.587 |
18121.350 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11915.843 |
12148.188 |
10509.900 |
|
|
|
Income From Services |
223.708 |
252.923 |
0.000 |
|
|
|
Other Income |
115.058 |
68.594 |
481.340 |
|
|
|
TOTAL (A) |
12254.609 |
12469.705 |
10991.240 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing expenses |
6996.455 |
7213.646 |
|
|
|
|
Purchase of trading goods |
62.728 |
96.447 |
|
|
|
|
Payments to and provision for employees |
829.764 |
818.119 |
|
|
|
|
Administrative and miscellaneous expenses |
418.511 |
679.045 |
8317.900 |
|
|
|
Selling and distribution expenses |
820.117 |
615.523 |
|
|
|
|
Excise duty |
(19.108) |
7.054 |
|
|
|
|
Decrease in stocks |
114.105 |
191.206 |
|
|
|
|
TOTAL (B) |
9222.572 |
9621.040 |
8317.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3032.037 |
2848.665 |
2673.340 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1054.494 |
900.042 |
516.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1977.543 |
1948.623 |
2156.540 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
761.118 |
696.112 |
644.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1216.425 |
1252.511 |
1512.340 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(192.030) |
209.531 |
504.140 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1408.455 |
1042.980 |
1008.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2843.111 |
3238.973 |
NA |
|
|
|
|
|
|
|
|
|
Add |
BALANCE
BROUGHT FORWARD FROM AMALGAMATING COMPANY |
0.000 |
(122.249) |
NA |
|
|
|
PRIOR
PERIOD ADJUSTMENT |
(1.129) |
9.912 |
NA |
|
|
|
EXCESS
PROVISION FOR TAX FOR EARLIER YEARS |
2.196 |
10.084 |
NA |
|
|
|
EXCESS
PROVISION FOR DEFERRED TAX FOR EARLIER YEARS |
0.000 |
1.745 |
NA |
|
|
|
TRANSFERRED
FROM GENERAL RESERVE AS PER SCHEME OF ARRANGEMENT |
1662.224 |
852.985 |
NA |
|
|
|
RECEIVABLES/
BALANCES WRITTEN OFF AS PER SCHEME OF ARRANGEMENT |
(1662.224) |
(852.985) |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
140.845 |
104.298 |
NA |
|
|
|
Transfer to General Reserve as per Scheme of
Arrangement |
1500.000 |
1000.000 |
NA |
|
|
|
Dividend |
200.039 |
200.039 |
NA |
|
|
|
Tax on Dividend |
33.224 |
33.997 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
2378.525 |
2843.111 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of finished goods of FOB basis |
2222.685 |
1976.327 |
1659.64 |
|
|
|
Recovery towards freight etc. on exports |
128.701 |
86.797 |
70.230 |
|
|
|
Export income from services |
34.830 |
124.210 |
100.750 |
|
|
|
Others |
0.000 |
0.015 |
0.000 |
|
|
TOTAL EARNINGS |
2386.216 |
2187.349 |
1830.620 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1058.672 |
1304.934 |
761.780 |
|
|
|
Stores & Spares |
73.186 |
32.822 |
29.710 |
|
|
|
Capital Goods |
90.974 |
45.365 |
210.060 |
|
|
TOTAL IMPORTS |
1222.832 |
1383.121 |
1001.550 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.09 |
10.65 |
10.08 |
|
Expected Sales (2010-11): Rs.15000.000 millions.
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3409.170 |
3364.250 |
3737.030 |
|
Total Expenditure |
2510.590 |
2731.000 |
3033.560 |
|
PBIDT (Excl OI) |
898.580 |
633.250 |
703.470 |
|
Other Income |
35.180 |
87.720 |
33.220 |
|
Operating Profit |
933.760 |
720.960 |
736.690 |
|
Interest |
301.060 |
272.890 |
265.440 |
|
PBDT |
632.700 |
448.070 |
471.250 |
|
Depreciation |
201.940 |
204.280 |
220.340 |
|
Profit Before Tax |
430.750 |
243.790 |
250.910 |
|
Tax |
0.000 |
13.700 |
0.000 |
|
Profit After Tax |
430.750 |
230.090 |
250.910 |
|
Net Profit |
430.750 |
230.090 |
250.910 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
11.49
|
8.36 |
9.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
56.85
|
10.10 |
14.38 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.30
|
4.30 |
22.91 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.10 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.33
|
1.33 |
0.41 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.07
|
3.13 |
4.11 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was promoted in 1987 in the joint sector by the GIIC and the Dalmias,
through their companies - GTC Industries and Dalmia Dairy Corporation. It has
obtained ISO 9002 certification awarded by Det Norske Veritas
Subject set up a 1200-tpd plant to manufacture soda ash (both dense and light),
at Veraval, Gujarat, based on the technology provided by Akzo Zoute Chemic, the
Subject exports to
The expansion of soda ash capacity by debottenecking its operations have
been achieved within the budgeted timeframe and cost. The company is also
planning other diversification and investments including manufacturing of
aniline.
In 1998-99, it acquired two salt refinery plants from DCW Home Products
Limited one at Thiruporur near Madras
and the other at Palghar, Maharashtra having a production capacity of 0.100
million tonne each per annum. BIFR has approved the scheme of amalgamation of
Sree Meenakshi Mills Limited with GHCL w.e.f April,2001.
The diversification programmes of the Company are being pursued cautiously
considering the current status of the soda ash industry. The Company is
exploring investment avenues in Information technology businesses particularly
IT enabled services.
The Company is also entering into lignite mining. Subject is in the
process of being allotted Lignite Mining rights in
Subject has entered into IT enabled services through wholly owned
subsidiary, Icon Data management Limited (IDML). Icon Data Management Limited
was amalgamated with the company with prior approval from High Court of
Gujarat. During 2002-03 the company acquired the entire equity capital of M/s
Colwell and Salmon Communications Limited comprising of 50,500 equity shares of
Rs.10 each, thereby making it a wholly owned subsidiary of Subject. The company
is planning to change its name to 'GHCL Limited' and the Board has approved the
same. The name change is subject to approval by Shareholders in the ensuing
AGM.
PERFORMANCE
HIGHLIGHTS
Soda Ash
The Global Soda Ash demand was 44
million tons in 2009-10 with a capacity
of 57
million tons. After growing at an average annual rate of almost
5 percent per year
since 2004, world soda ash demand
fell by about
9.5 percent in 2009. This represented a loss in volume of
about 4.6 million metric tons compared to 2008. As a result of weak
demand, world soda ash operating rates averaged just 76 percent
of capacity in 2009, probably the
lowest rate the industry has ever seen.
The USD12.50 billion global soda ash market is being affected by the
recession and a downturn in the demand
for glass from the construction and automotive sectors. Rapid growth in the
developing economies is expected to return but full recovery may take quite a
few years. Notwithstanding the continuing economic and energy problems in
certain areas of the world, over all global demand for soda ash is expected to
grow from 1.5% to 2% annually for the next several years.
The global meltdown had affected
Indian Industry also and Soda Ash demand
growth in the year 2008 was flat. The strong rebound of the Indian Economy was witnessed in Soda Ash also as
demand growth rebounded to a very healthy 9%
in 2009. It is expected that on
the back of a strong growth in Glass (Construction/Automobiles) and Detergents (FMCG penetration and
growth), Soda Ash demand will
continue to grow at 5-6% in the current year.
Import of Soda Ash from
The company had successfully completed its soda ash expansion during
2007-08 which has resulted increase in production capacity up to 850
Millions MTPA in
Soda Ash prices have declined YOY. Further, the increase in cost of energy and other raw-materials have
significantly affected the margin of Soda
Ash manufacturers. However, The
company is better placed because of
its own captive lignite
mines and in house developed briquette
usages as an alternative source
of fuel, which is cost effective
and also reduced dependability on other source of
energy.
Bi-Carbonate
(BICARB)
During the year, the Company achieved production of Bi-Carbonate 20161
tons against 12659 tons in the previous year, which is higher by 59.26%. During the
year the Company achieved sales
of Bi-Carbonate 19648 tons
against 12343 tons in the previous year, which is higher by 60.48%.
Home-Textiles
The timely providing of 'Stimulus
Package' by the Government of India in 2009
to tide over Global Financial
crisis has had a tremendous catalyst effect in
turning around Indian Textile Industry in 2009-10. The
Indian Textile industry, 2nd largest in the world, after registering a
decline in 2008-09, rebounded
magnificently by recording more than 8% growth in 2009-10. The exports also registered a growth
of around 5%.
For Subject Textile Business also, the year 2009-10 has been
remarkable in terms of
overall performance and profitability of
the company. The company,
with it's state-of-art textile facilities from spinning to made-ups,
has cautiously rationalised its customer base and successfully
made deep inroads with large
Global Retailers for running their replenishment programmes. The company today
boasts of a customer base that comprises
of Wal-Mart, K-Mart/Sears, Macy's, Bed Bath and Beyond, J C Penny and
The operating profit of the
textile division stood at Rs. 180.700 Millions
for 2009-10 as against operating
loss of Rs. (141.300) Millions in
2008-09, which signified a huge improvement
of Rs. 322.000 Millions in
profitability as compared to last
year.
The Management is
taking further initiatives in
terms of adding
more capacities in value-add segment, Printing and Cut and Sew
facility which would have
significant benefits in the coming years.
Retail Initiative
The company's retail initiative under Rosebys Interiors
India Limited (RIIL) is primarily focused on home and life style
retailing. Rosebys has recently signed
an agreement with National Textile Corporation (NTC) to run their stores. The first one is already operational
in a premium shopping area
in New Delhand the others will be rolled out at
different places during the
year. Rosebys in joint association with NTC has been
awarded Homeware category license to sell Common Wealth Games, (CWG)
2010 propriety products across
FINANCE
The Company had issued an
aggregate of US$ 80.5 million
Foreign Currency Convertible
Bonds (FCCBs) at a coupon rate of 1% in 2005. Out of which USD 1.5
million FCCBs were converted into equity shares in the financial year 2007-08.
During the previous financial year ended on
March 31, 2009, pursuant to circular issued by RB vide
AP (DIR Series) Circular No 39 dated December
8, 2008 and in line with the
approval obtained from RBI,
The company had bought
back USD 11.00 million of
FCCBs at discount
and extinguished the same. The
total outstanding of FCCB as on March 31, 2009 was USD 68.00 million.
At the beginning of financial year 2009-10, the outstanding FCCBs
were USD 68.00 million.
During the Financial
year 2009-10, the
Company had repurchased (bought
back) FCCBs aggregating to face value
of USD 39.00 million
at discount and extinguished the
same in line with the approval received from Reserve Bank of
Subsequent to the year end, buy back process of FCCBs is
still going on pursuant to specific approval of the
Reserve Bank of India and the Company
had bought back FCCBs aggregating to face value of
USD 7.25
million at discount and extinguished the same. After said buy
back, the outstanding FCCBs is USD 21.75 million as on June 30, 2010.
During the financial
year The company has transferred
to investors' education and
protection fund account (IEPF) a
sum of
Rs. 3.164 Millions towards
unclaimed dividend/unclaimed deposits along with interest thereon.
MANAGEMENT
DISCUSSION AND ANALYSIS
The management of
SUBJECT Limited presents the analysis
of division-wise performance of
the Company for the financial year ended March 31, 2010 and its
outlook for the future. This
outlook is based on assessment of the
current business environment. It may vary due to future economic and other developments, both in
REVIEW OF ECONOMY
Indian economy has been witnessing a phenomenal growth since
the last decade. The country is
still holding its ground in the midst of the current global financial
crisis particularly in European
countries. During the financial
year 2009-10, the
growth of the Indian
economy has shown improvement and touched 7.4% as
compared to 6.7% in the previous
financial year 2008-09.
The economy, which had been growing at over 9%, slipped to 6.7% in 2008-09 following the impact of the global
economic crisis triggered by the fall of investment bank
Lehman Brothers in September 2008. In
order to sustain economic growth
during the time
of the worst
recession, government
authorities in
Averring to the resilience of the Indian financial
system to have
even weathered the global financial storm, the
Food inflation in
COMPANY
PERFORMANCE-PERFORMANCE HIGHLIGHTS
- Revenue of
the
- Profit before
financial expenses and depreciation for the financial year ended March 31, 2010 of the
- PAT (Profit
after Tax) for the financial year ended March 31, 2010 of the India
business has risen by 35.04% to Rs. 1408.500 Millions against
Rs.1042.900 Millions for the
previous financial year ended March 31, 2009.
INORGANIC
CHEMICALS (SODA ASH) GLOBAL SODA ASH INDUSTRY
Demand-supply scenario
DEMAND
Global economic problems have reduced world soda ash consumption.
World soda ash demand fell by about 9.5% in 2009. This
represented a loss
of volume of about 4.6 million
metric tons compared to 2008. It may take
few years for demand to come back to pre-recession levels. As a result
of weak demand, world soda ash operating
rates averaged just 77 percent of capacity in 2009 likely the lowest rate the
industry has ever seen.
The adverse economic
conditions in automobile production
and housing affected soda ash
consumption in the flat glass and fiber glass sectors in 2008
continued through 2009. Notwithstanding the continuing economic
and energy problems in certain
areas of the world, over all global demand
for soda ash is expected to grow from 2% annually for the next 2 to 3
years. A global economic recovery is
expected in the year 2010-11.
SUPPLY
The capacity addition has slowed
in the developed nations such as US and
UK due to the
increased use of liquid detergents,
replacement of glass containers by
plastic containers, increased
use of cullet
in glass production coupled with
the stagnant industrial growth.
The world's largest deposit of trona is in the Green River Basin of
Wyoming in USA having
a presence of
world's major companies
in the area contributing to the sustained growth of
US exports. With abundant reserves, US soda ash players dominate the
international trade.
INDUSTRY OUTLOOK
World's total soda
ash demand which at present is
at 44.00
Analysts expect the new
capacities to come mainly in the regions
of high growth such as
There has been a major global
meltdown in soda ash prices since last
year caused by lower demand and by rising costs of energy and transport.
The demand for soda ash is primarily driven by the requirements
of the glass industry while the
needs of the fabric washing (detergents) and other cleaning sectors also play an important role in as much
as they use soda ash
both directly and
in a derivative
form. The estimated
global consumption of soda ash is expected to be in the following ratio
with glass contributing 50%, Detergents 15%, Chemical 10% and others 25%.
INDIAN SCENARIO
Global meltdown has affected the
overall scenario however the Indian soda
ash industry stood resilient. Though domestic demand showed improvement in FY
2009-10 i.e. a growth of around
10-11% over last year. However major part
of the growth has been snatched by imports. In 2009-10 about 23% of
the Indian demand is being met through
imports, this trend in the current year
is expected to be lower due to increase in domestic demand of
The Indian Soda Ash market constitutes of two varieties-Light (used
in detergent industry) and Dense
(used in Glass industry), with a share of
70% and 30% respectively. Total
installed capacity in
The total size of the Indian soda
ash market is about 2.6 Mn MT with all the
major industry players located in the state of
It is also an additional advantage to
GHCL SODA ASH
BUSINESS
Subject is a leading Indian
producer of soda ash is well-poised to tap opportunities in the dense soda ash
business which contributes about 30 per cent of the total revenues whereas the
total soda ash business contributes about 68
per cent of total Indian Stand
alone revenue (Dense soda
ash Constitutes 45% while 55% is light).
In its first phase of expansion,
SUBJECT has raised its domestic
capacity by about 40 per cent to 85 Millions tons with its over
all capacity including the
Romanian capacity going up to 1.150 Millions tons.
The company would further increase its domestic capacity
by about 25 Millions tons to 1.100
Millions tons in the second phase
in next couple of years depending
upon industry requirement.
The company has a significant advantage in maintaining
tight control on cost
of soda ash due to 100% captive source on some of
the major raw materials-Salt, Limestone,
Met Coke and fuel. The other
key factor for success
is the innovation brought in by the company
by replacing the imported
Met Coke with in-house Developed Briquette Coke. SUBJECT is the
only soda ash manufacturing company in
Subject shares highly successful client relationships and
is the
preferred supplier to all major soda ash consumers; its
clients include Hindustan Unilever Limited, GharGroup, Gujarat
Guardian Limited, Videocon Industries
Limited, Gujarat Borosil Limited, Piramal Glass Limited and Phillips.
Subject in order to capitalize on
the demand opportunity from the real
estate and construction and automobile sector has added capacity for a
higher share in the world's fastest growing market of Asia,
growing @ 5% approximately by increasing
its global capacity to 1.1 million MT.
The company is replicating its
domestic cost control methods at its
facilities in the European market to have higher margins.
The product quality is comparable to the best European producers
with cost being comparable to Chinese
units. he industry offers huge opportunity for growth as the Indian per capita
consumption of soda ash is the lowest (2.06 Kg)
and there are opportunities for capacity expansion because of product acceptability in the export markets.
The industry suffers from the
weaknesses of concentration of 95%
capacity in Gujarat and the cost
of transport to markets in South and
Subject has been
able to maintain
a domestic market
share through a combination of market development,
pro-active Direct Customer Relationship
management Satisfaction Initiatives
(CSI) and the speedy response to the needs
of the market place. The impact
of Global slowdown also impacted Romania Soda Ash operations. They
have put a lot of focus on cost control and have been able to bring down the
costs.
Delivery model and approach
SUBJECT 's core operations and
management team over the
last few years have come up with
a focused model and approach towards implementing turnaround and growth strategies that would
be implemented to develop the growth potential of the
company and create replicable model to
be used globally.
In
HOME TEXTILES:-
OUTLOOK AND GROWTH
The Indian Textile Industry, second largest in the World, contributes
about 14% to the Country's Industrial Production and 17% to the Country's Export earnings according to the Annual
Report 09-10 of the Ministry of
Textiles. With over 35
million jobs, it is the
second largest provider
of the employment in
The dismantling of Global quotas in 2005 in the Textiles arenaled
to
Favorable Government policies, low fnance cost under TUF comparable
to any country in the world and capital subsidy makes fnance
cost extremely low, Zero duty CENVAT
chain and textile and apparel parks are the major positives which are driving the growth in the
textile sector including Home-Textiles. Home-Textile continues its strong growth in the country
with a number of new
projects and the growing domestic market is attracting
international companies too. Inherent strengths and cost competitiveness
of Indian textiles industry is
catalyzing major retailers and brands of the world such as Wal-Mart, Target, Gap, Marks and Spencer and
Tesco to set up shops/increasing their Indian presence augurs well for the
sector.
The domestic home
textile market size, which was estimated
at Rs. 600 billion
in 2007-08, is expected to touch Rs. 775
billion in 2010-11. Exports are
expected to grow at a CAGR of 12.3% from Rs. 120 billion
in 2007-08 to Rs. 170 billion in 2010-11. Home textile companies
are also foraying into domestic
retail to reach the customers directly.
GHCL-Home Textiles
Subject is one of the largest integrated textile manufacturers in the country
with an installed
spinning capacity of
140,000 spindles manufacturing
100% cotton and polyester cotton blended yarns. The company's state-of-art
plant at Vapi,
The annual processing
capacity, comprising of
bleaching, dyeing and printing,
is 36 million
meters of fabric.
Technologically advanced
processing capabilities enhance
the value of
finished fabrics by incorporating special fnishes such as Anti-Microbial, Aloe
Vera, Water and Stain
Repellent and Easy Care/Non Iron. Subject has
automated Cut and
Sew facilities which enable a
high quality, consistent confection.
Innovative hem treatments are employed in adding value to products.
The year 2009-10 has been a
remarkable year for SUBJECT 's
Textile Business. The company has rationalised its customer base
and successfully made deep inroads with
large global retailers for their
replenishment programmes.
SUBJECT currently has large presence
with major retailers like Wal-Mart, K-Mart,
Bed Bath and Beyond, House of Fraser etc in both
US and European Markets. This
coupled with excellent
raw material coverage,
timely investment in compact spinning, optimal utilization of wind
energy and initiative in power
trading, have helped the company to achieve
significant improvement in profitability in textile business in 2009-10.
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE YEAR ENDED ON 30 JUNE 2010
(Rs.
In Millions)
|
Particular |
Quarter
Ended |
|
|
Unaudited |
|
|
30.06.2010 |
|
Net Sales/ Income
form operation |
3409.173 |
|
Total Income |
3409.173 |
|
Expenditure |
|
|
Increase /
Decrease in stock |
(155.180) |
|
Consumption of
raw material / purchase |
1253.619 |
|
Purchase of
traded goods |
11.753 |
|
Employees cost |
225.462 |
|
Power, fuel and
water |
517.087 |
|
Depreciation |
201.944 |
|
Other expenditure
|
598.902 |
|
Total expenditure
|
2643.587 |
|
Profit from
operation before other income, interest and exceptional items |
765.586 |
|
Other income |
35.175 |
|
Profit before
interest and exceptional items |
800.761 |
|
Interest |
301.060 |
|
Profit after interest
but before exceptional items and exchange impact |
499.701 |
|
Exchange gain/
loss |
(08.947) |
|
Profit after
interest but before exceptional items |
430.754 |
|
Gain / loss on
exceptional items |
-- |
|
Profit / Loss from
ordinary activities before tax |
430.754 |
|
Tax expenses |
-- |
|
Net profit / Loss
for the period |
430.754 |
|
Prior period
items |
-- |
|
Excess / short
provision for I ax for earlier years |
-- |
|
Net profit |
430.754 |
|
Minority interest
profit / loss |
-- |
|
Net profit after
minority interest |
430.754 |
|
Paid up equity
share capital (face value of equity shares of Rs. 10/- each) |
1000.193 |
|
Reserves
excluding revaluation reserves |
-- |
|
Earning per
shares (in Rs) Basic |
4.31 |
|
Earning per
shares (in Rs)Diluted |
4.02 |
|
Public
shareholding |
|
|
Number
of Shares |
81759417 |
|
% of
Shareholding |
81.74 |
|
Promoters
and Promoter Group Shareholding |
|
|
a)
Pledged/Encumbered |
|
|
-
Number of Shares |
1606000 |
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
8.79 |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
|
|
b)
Non Encumbered |
|
|
-
Number of Shares |
16657869 |
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
91.21 |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
16.66 |
STANDALONE SEGMENT
REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT
(Rs.
In Millions)
|
Particular |
Quarter Ended |
|
|
Unaudited |
|
|
30.06.2010 |
|
Segment Revenue |
|
|
Inorganic Chemicals |
2204.397 |
|
Home Textiles |
1203.706 |
|
Others / Un allocated |
1.070 |
|
Total Revenue |
3409.173 |
|
Segment Results |
|
|
Operation profit before interest and tax |
|
|
Inorganic Chemicals |
626.468 |
|
Home Textiles |
138.168 |
|
Others / Un allocated |
(6.185) |
|
Total segment results |
758.451 |
|
Interest expenses |
(301.060) |
|
Un allocated expenditure |
(26.637) |
|
Total profit before tax |
430.754 |
|
Capital Employed |
|
|
Inorganic Chemicals |
7041.631 |
|
Home Textiles |
4536.196 |
|
Others / Un allocated |
2032.058 |
|
Total |
13609.885 |
FIXED ASSETS
- Buildings
- Plant and
Machinery
- Furniture and
Fixtures
- Office
Equipments
- Vehicles
- Wind Turbine
Generators
- Leased Mines
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 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.44.99 |
|
|
1 |
Rs.73.23 |
|
Euro |
1 |
Rs.62.80 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
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.