BUSINESS INFORMATION REPORT
1. Summary Information
|
|
|
Country |
|
|
Company Name |
MANGALORE
CHEMICALS AND FERTILISERS LIMITED |
Principal Name 1 |
DR. VIJAY MALLYA |
|
Status |
GOOD |
Principal Name 2 |
MR. DEEPAK ANAND |
|
|
|
Registration # |
08-002036 |
|
Street Address |
NO.5, CRESCENT ROAD, HIGH GROUNDS, |
||
|
Established Date |
18.07.1966 |
SIC Code |
-- |
|
Telephone# |
91-80-22208990-93 |
Business Style 1 |
MANUFACTURER |
|
Fax # |
91-80-22208989 |
Business Style 2 |
SELLER |
|
Homepage |
Product Name 1 |
COMPLEX FERTILIZERS |
|
|
# of employees |
827 (Approximately) |
Product Name 2 |
UREA |
|
Paid up capital |
Rs.1,185,486,000/- |
Product Name 3 |
DAP |
|
Shareholders |
PROMOTER AND PROMOTER GROUP-30.44% PUBLIC SHAREHOLDING-69.56% |
Banking |
AXIS BANK
LIMITED |
|
Public Limited Corp. |
YES |
Business Period |
45 YEARS |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
Ba (54) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
SUBSIDIARIES |
-- |
MCF INTERNATIONAL LIMITED |
-- |
|
Note |
--
|
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
4,186,382,000
|
Current Liabilities |
1,648,542,000
|
|
Inventories |
1,752,768,000
|
Long-term Liabilities |
1,889,396,000 |
|
Fixed Assets |
3,784,600,000 |
Other Liabilities |
1,465,448,000
|
|
Deferred Assets |
0,000 |
Total Liabilities |
5,003,386,000 |
|
Invest& other Assets |
130,674,000 |
Retained Earnings |
3,665,552,000 |
|
|
0 |
Net Worth |
4,851,038,000 |
|
Total Assets |
9,854,424,000 |
Total Liab. & Equity |
9,854,424,000 |
|
Total Assets (Previous Year) |
8,905,322,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
25,201,071,000 |
Net Profit |
775,368,000 |
|
Sales(Previous yr) |
20,756,449,000 |
Net Profit(Prev.yr) |
564,912,000 |
MIRA
INFORM REPORT
|
Report Date : |
15.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
MANGALORE CHEMICALS AND FERTILISERS LIMITED |
|
|
|
|
Registered
Office : |
Level 11, UB Tower, UB City, 24 Vittal Mallya Road, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
18.07.1966 |
|
|
|
|
Com. Reg. No.: |
08-002036 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1185.486 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24123KA1966PLC002036 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRM06363A BLRM00106B BLRM03609E BLRM00923G BLRM03445B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCM3599G |
|
|
|
|
Legal Form : |
Public limited liability company. The company's shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer, Purchaser and Seller of Fertilizers and Related
Products. |
|
|
|
|
No. of Employees : |
827 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 19000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track. Financial position
of the company appears to be sound. Directors are reported as experienced and
respectable businessmen. Trade relations are reported as fair. 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.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/ Head/ Marketing Office / Corporate Office: |
Level 11, UB Tower, UB City, 24 Vittal Mallya Road, |
|
Tel. No.: |
91-80-39856000, 39856500, 39855000, 39855500 |
|
Fax No.: |
91-80-39855588 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
|
Flat No.1002, 10th Floor, Bhikaji Cama
Bhavan, |
|
Tel. No.: |
91-11-26181760 |
|
Fax No.: |
91-11-26107818 |
|
|
|
|
Works Office : |
Panambur, Mangalore - 575 010, |
|
Tel. No.: |
91-824-2220600 |
|
Fax No.: |
91-824-2407938 |
|
E-Mail : |
|
|
|
|
|
Zonal Office |
Located at: ·
Hubli
·
Raichur
|
|
|
|
|
Area Office |
Located at: ·
Hassan
·
Hubli
·
Raichur
·
Kerala |
DIRECTORS
As on 31.03.2011
|
Name : |
Dr. Vijay Mallya |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Deepak Anand |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. S.R. Gupte |
|
Designation : |
Director |
|
Date of Birth ; |
06.03.1939 |
|
Qualification : |
B. Com., Chartered Accountant |
|
Date of Appointment : |
23.12.1996 |
|
Brief resume /
Expertise in specific
functional areas : |
Mr. S R Gupte
worked with Caltex India Limited from 1964 for 5 ½ years in various
capacities. He joined Air Mr. Gupte joined
the United Breweries Group in March 1992 as Executive Vice Chairman and is on
the Board of a number of Public Limited Companies. He has been on the Board
of the Company from December 1996. |
|
Directorship
in other
Public Limited Companies
: |
1. Aventis
Pharma Limited 2. Kingfisher
Airlines Limited 3. United
Spirits Limited 4. Millennium
Beer Industries Limited 5. Shaw Wallace
Breweries Limited 6. UB
Electronics Instruments Limited |
|
|
|
|
Name : |
Mr. B.S. Patil, I.A.S. (Retd.) |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Pratap Narayan |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Shrikant G. Ruparel |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. N. Sunder Rajan |
|
Designation : |
Independent Director |
|
Date of Birth ; |
17.5.1944 |
|
Qualification : |
Indian Audit and Accounts Service (Retd.) |
|
Date of Appointment : |
28.04.2006 |
|
Brief resume /
Expertise in specific
functional areas : |
Mr. N Sunder
Rajan, an officer of the Indian Audit and Accounts Service, has served in various
capacities in the Indian Audit and Accounts Department, the Central
Ministries of Finance and Civil Aviation and Tourism and in the Lok Sabha
Secretariat assisting the Public Accounts Committee of Parliament in
enforcing executive accountability. As Deputy
Comptroller and Auditor General of |
|
Membership of Committees in other Public Limited Companies : |
1. Millennium Beer Industries Limited |
|
|
|
|
Name : |
Mr. K. Prabhakar Rao |
|
Designation : |
Whole-time Director |
|
Date of Birth ; |
02.07.1955 |
|
Qualification : |
B.E (Chemical Engineering) |
|
Date of Appointment : |
27.10.2006 |
|
Brief resume /
Expertise in specific
functional areas : |
Mr. Prabhakar
Rao, 56, holds a Degree in Chemical Engineering. He has been working with MCF
since 1978 and has handled various responsibilities in the Company. As
Director – Works, he is presently responsible for production, maintenance,
quality control, technical services, projects, safety and logistics at the
Company’s plant in Mangalore. Mr. Rao has widely travelled and participated
in many National and International symposiums and has attended various
Management Development Programs in premier Institutions such as IIM Bangalore
and Ahmedabad. |
KEY EXECUTIVES
|
Name : |
Mr. S. Ramaprasad |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. A. Rudrachary |
|
Designation : |
Senior Vice President (Strategic
Initiatives) |
|
|
|
|
Name : |
Mr. V.C. Prakash |
|
Designation : |
Vice President (Marketing) |
|
|
|
|
Name : |
Mr. S. Ramaprasad |
|
Designation : |
Vice President (HR and Legal) and
Company Secretary |
|
|
|
|
Name : |
Mr. K. Raghuveeran |
|
Designation : |
Vice President (Finance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
36076775 |
30.44 |
|
|
36076775 |
30.44 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
36076775 |
30.44 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
142425 |
0.12 |
|
|
438846 |
0.37 |
|
|
3759884 |
3.17 |
|
|
105140 |
0.09 |
|
|
330286 |
0.28 |
|
|
4776581 |
4.03 |
|
|
|
|
|
|
18075288 |
15.25 |
|
|
|
|
|
|
36039542 |
30.41 |
|
|
18551239 |
15.65 |
|
|
4995725 |
4.22 |
|
|
202676 |
0.17 |
|
|
1520 |
-- |
|
|
3661879 |
3.09 |
|
|
1101405 |
0.93 |
|
|
2150 |
-- |
|
|
26095 |
0.02 |
|
|
77661794 |
65.53 |
|
Total Public
shareholding (B) |
82438375 |
69.56 |
|
Total (A)+(B) |
118515150 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total
(A)+(B)+(C) |
118515150 |
-- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer, Purchaser and Seller of Fertilizers and Related
Products. |
||||||||||||
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|
|
||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
(In
MT per annum)
|
Particulars |
|
Licensed
Capacity |
Installed
Capacity * |
Actual
Production |
|
Ammonia (for captive consumption) |
|
217800 |
217800 |
218972 |
|
Urea |
|
379500 |
379500 |
379500 |
|
Complex Fertilizers (DAP and NP) |
|
255500 |
255500 |
223552 |
|
Ammonium Bi-Carbonate |
|
15330 |
15330 |
15330 |
|
Sulphuric Acid |
|
33000 |
33000 |
29585 |
|
Speciality Fertilizers |
|
40000 |
40000 |
7635 |
|
Sulphonated Naphthalene Formaldehyde |
|
21450 |
21450 |
4406 |
* As certified by the Management
GENERAL INFORMATION
|
No. of Employees : |
827 (Approximately) |
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Bankers : |
|
|||||||||||||||||||||
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|||||||||||||||||||||
|
Facilities : |
Notes: a) Term loan from
Banks: Rs.197.222 Millions (previous year Rs.157.431 Millions) is secured by
First charge on the project assets, and second charge on all of the Company’s
fixed assets including all movable and immovable properties both present and
future. b) Working
Capital facilities of Rs.1678.918 Millions (previous year Rs.815.065
Millions) from banks are secured by a first pari passu charge on present and
future plant and machinery, stock of fertilizers including work-in-process
and raw materials, book debts, outstanding monies, receivables, claims,
bills, contracts, engagements, securities, investments, rights and assets of
the Company (except property effectively otherwise hypothecated / charged or
mortgaged to the banks). c) Loans from others is lease liability secured by hypothecation of
assets acquired under the facility. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
K.P. Rao and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Cost Auditors : |
|
|
Name : |
P R Tantri Chartered Accountants |
|
Address : |
B-1580, Sahakara Nagar, |
|
Membership No.: |
2403 |
|
PAN.
No.: |
AAGPT1121R |
|
|
|
|
Associates : |
United Breweries (Holdings) Limited |
|
|
|
|
Subsidiaries : |
MCF International Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
124000000 |
Equity Shares |
Rs.10/- each |
Rs.1240.000 millions |
|
600000 |
13% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.60.000 millions |
|
|
Total
|
|
Rs.1300.000
millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
120000044 |
Equity Shares |
Rs.10/- each |
Rs.1200.000
millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
118515150 * |
Equity Shares |
Rs.10/- each |
Rs.1185.151
millions |
|
|
Add: Amount paid on equity shares forfeited: |
|
Rs.0.335
million |
|
|
Total
|
|
Rs.1185.486 millions |
* Of the above
shares, 44195473 Equity Shares are allotted as fully paid-up pursuant to a
contract without payment being received in cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1185.486 |
1185.486 |
1185.486 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3665.552 |
3110.575 |
2706.481 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4851.038 |
4296.061 |
3891.967 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1889.396 |
981.633 |
3912.049 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
55.901 |
|
|
TOTAL BORROWING |
1889.396 |
981.633 |
3967.950 |
|
|
DEFERRED TAX LIABILITIES |
377.688 |
392.973 |
370.196 |
|
|
|
|
|
|
|
|
TOTAL |
7118.122 |
5670.667 |
8230.113 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3784.600 |
3570.679 |
3199.208 |
|
|
Capital work-in-progress |
130.674 |
281.976 |
165.930 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.500 |
0.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1752.768
|
1618.707
|
1707.735 |
|
|
Sundry Debtors |
405.777
|
173.084
|
90.500 |
|
|
Cash & Bank Balances |
172.706
|
74.413
|
160.905 |
|
|
Other Current Assets |
71.402
|
31.080
|
19.563 |
|
|
Loans & Advances |
3536.497
|
3154.883
|
5904.832 |
|
Total
Current Assets |
5939.150
|
5052.167
|
7883.535 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1243.025
|
2359.953
|
2323.041 |
|
|
Other Current Liabilities |
405.517
|
18.605
|
17.562 |
|
|
Provisions |
1087.760
|
856.097
|
678.457 |
|
Total
Current Liabilities |
2736.302
|
3234.655
|
3019.060 |
|
|
Net Current Assets |
3202.848
|
1817.512
|
4864.475 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7118.122 |
5670.667 |
8230.113 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales and Services |
25201.071 |
20756.449 |
24696.198 |
|
|
|
Other Income |
37.195 |
60.856 |
144.217 |
|
|
|
TOTAL (A) |
25238.266 |
20817.305 |
24840.415 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenditure |
23593.163 |
19556.232 |
23809.829 |
|
|
|
Variation in Stock of Finished Goods and Work-in-Process |
54.460 |
(2.332) |
68.455 |
|
|
|
TOTAL (B) |
23647.623 |
19553.900 |
23878.284 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1590.643 |
1263.405 |
962.131 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
181.425 |
234.357 |
359.971 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1409.218 |
1029.048 |
602.160 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
288.817 |
183.704 |
169.550 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1120.401 |
845.344 |
432.610 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
345.033 |
280.432 |
150.876 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
775.368 |
564.912 |
281.734 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1753.967 |
1327.712 |
1143.038 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
142.218 |
118.515 |
82.961 |
|
|
|
Corporate Dividend Tax |
23.071 |
20.142 |
14.099 |
|
|
BALANCE CARRIED
TO THE B/S |
2364.046 |
1753.967 |
1327.712 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports (F.O.B. Value) |
50.630 |
1.608 |
4.618 |
|
|
TOTAL EARNINGS |
50.630 |
1.608 |
4.618 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
59.069 |
38.365 |
41.940 |
|
|
|
Spare Parts |
39.125 |
59.410 |
32.168 |
|
|
|
Raw Materials |
4292.197 |
3905.704 |
8101.677 |
|
|
|
Purchase of Finished Goods |
6053.043 |
4536.565 |
1353.111 |
|
|
TOTAL IMPORTS |
10443.434 |
8540.044 |
9528.896 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.54 |
4.77 |
2.38 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Net Sales |
5861.200 |
10600.380 |
|
Total Expenditure |
5423.970 |
9979.650 |
|
PBIDT (Excl OI) |
437.230 |
650.730 |
|
Other Income |
0.000 |
0.000 |
|
Operating Profit |
437.230 |
620.720 |
|
Interest |
41.740 |
87.180 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
395.490 |
533.540 |
|
Depreciation |
70.960 |
73.720 |
|
Profit Before Tax |
324.530 |
459.820 |
|
Tax |
27.480 |
151.210 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
297.060 |
308.620 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
297.060 |
308.620 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.07 |
2.71
|
1.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.45 |
4.07
|
1.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.52 |
9.80
|
3.90 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23 |
0.20
|
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.95 |
0.98
|
1.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.17 |
1.56
|
2.61 |
LOCAL AGENCY FURTHER INFORMATION
NOTE:
Registered office of the company has been
shifted from “No.5, Crescent Road, High Grounds,
PERFORMANCE
2010-11
was a yet another year of growth and improved performance, with the Company
registering the highest ever turnover and Profit Before Tax (PBT). The Company
achieved a record sale of One Million Metric Tonnes of fertilizers for the
second year in a row. Sales (including other income) of the Company for the
year 2010-2011 was Rs.25238.300 Millions compared to Rs.20817.300 Millions in
the previous year, registering a growth of 21%. The PBT at Rs.1120.400 Millions
was higher compared to Rs.845.300 Millions during the previous year,
representing an increase of 33%.
PRODUCTION
Urea
The
Company achieved production of the full re-assessed capacity of 3,79,500 MTs.
Di-Ammonium Phosphate (DAP) and Complex Fertilizers
The
Company achieved production of 2,23,552 MTs of Phosphatic Fertilizers during
the year compared to 2,82,173 MTs in the previous year. The lower production is
on account of erratic and inadequate supplies of phosphoric acid.
Ammonium Bi-Carbonate (ABC)
The Company achieved full capacity
production of 15,330 MTs of ABC.
SALES
During the year, the Company sold
3,79,442 MTs of Urea compared to 3,83,338 MTs in the previous year. Sales of
manufactured Phosphatic Fertilizers was 2,24,938 MTs compared to 2,80,413 MTs in
the previous year. Sales of imported products registered significant growth,
with imported Phosphatics at 2,07,320 MTs compared to 1,74,670 MTs in the
previous year. Sales of Muriate of Potash was 88,052 MTs compared to 57,435 MTs
in the previous year.
SULPHONATED NAPHTHALENE FORMALDEHYDE (SNF)
In line with the Company’s growth objective, a
state-of-the-art plant with an annual production capacity of 21,450 MTs of
liquid SNF was commissioned in August 2010. SNF is predominantly used in the construction
chemical industry for manufacture of super plasticizer. The product samples
were sent to leading customers for field trials and were well accepted. The
liquid and powder forms of SNF were released to the market with the trade names
ChemCF NL
and ChemCF NP
respectively. During the year, 4400 MTs of liquid SNF were produced.
INTEGRATED NUTRIENT MANAGEMENT (INF)
The country is facing a serious
problem of deterioration in soil productivity. Indiscriminate and unbalanced
use of N.P.K fertilizers over the years and inadequate use of other nutrients
essential for plant growth are amongst the main reasons for the loss in soil
productivity.
Improvement in soil productivity and maintenance of the
soil fertility can be achieved by the adoption of an Integrated Nutrient
Management
(INM) approach. Having been actively associated with the
farming community for over 3 decades, the Company believes it has a key role to
play in helping the farmers to achieve higher productivity as well as superior
quality of farm produce.
INM encompasses soil health management, water management,
plant nutrition and plant protection. The Company has been engaged in imparting
extensive and continuous education to farmers and channel partners on the need
to practice INM techniques, so that all the essential nutrients are made
available in time at every stage of crop growth.
To help the farmer achieve this objective, over the last
few years, MCF has been developing and introducing Plant Nutrition (PN)
products that are required for achieving root and shoot growth, more flowering,
higher fruit and seed setting, improved quality and extended shelf-life of the
produce.
Some of the crop specific PN products developed at the
Company’s R and D unit in Hassan and introduced during the year include Mangala Tur Special and
Mangala GT Booster for Tur, and Ginger and Turmeric crops, respectively. Mangala Cotton Special and
Mangala Chilli Special for Bt. Cotton and Chilli crops are ready for
introduction. These products, in addition to improving tolerance to crop
specific diseases also lead to better quality and higher productivity. The
response from the crop growers on the effectiveness of these products has been
very positive and there is a growing demand for development of similar products
for other crops.
In order to increase the coverage under its Integrated
Nutrient Management program, the Company introduced two unique concepts viz. Mangala Mitra and
Mangala Saathi. Under Mangala Mitra, opinion leaders in the villages are
identified and enrolled to educate fellow farmers on various aspects of crop
cultivation. Under the Mangala Saathi, the key channel partners are identified
and are given special attention for promoting INM awareness.
All these efforts have led to the Company achieving a
turnover of Rs.1000.000
Millions during the year compared to about Rs.6.200 Lakhs achieved during the year 2002-2003 when the
INM concept was first introduced.
In order to meet the increasing demand for PN products,
the Company has set up a Specialty Fertilizer manufacturing facility at its
factory in Mangalore, to produce Water Soluble Fertilizers and Micronutrient
Mixtures. The plant with an annual capacity of 12,000 MTs was commissioned in
April 2011. Another facility to produce 10,000 MTs per annum of soil
conditioners is under construction and will be commissioned during the current
financial year.
PLANT PROTECTION CHEMICALS
As part of its diversification and growth strategy and in
order to offer a wider range of agri inputs, the Company introduced Plant
Protection (PP) Chemicals in July 2010. As an entry strategy, a collaborative
approach was adopted, with the Company marketing the products of reputed
pesticide companies through its channel partner network. During the first 9
months of operations, the business registered an impressive turnover of Rs.120.000 Millions. In the current financial year 2011-2012,
in addition to the above arrangement, the Company also plans to launch its own
brand of PP products for a few select molecules.
WORKING CAPITAL
During the year, the domestic
production of fertilizers and import of fertilizers were almost at the same
level as in the previous year. In order to meet its working capital needs, the
Company also availed of short term loans from banks that carried lower rate of
interest compared to normal cash credit limits. Settlement of subsidy claims
was also relatively better during the year. All these factors and efficient
working capital management contributed to reduction of interest costs.
FERTILIZER POLICY
Stage-III of the New Pricing Scheme (NPS) for Urea announced by the Government
of India in March 2007 expired on March 31, 2010. As the new policy is yet to
be finalized and announced, the existing scheme has been extended provisionally
until further orders.
As per the existing policy, all Naphtha/Furnace Oil/LSHS
based units were to convert to gas by March 31, 2010. However, this time limit
is expected to be extended upto 31.03.2013 by Government of India, for which an
official communication is awaited. A Gas Sale Agreement has been entered into
with Indian Oil Corporation for supply of RLNG from Kochi Terminal of Petronet
LNG Limited and a Gas Transmission Agreement has been signed with Gail (India)
Limited. Based on latest indications, supply of gas to Mangalore is expected to
commence by end 2012. Leading consultants have been engaged for the basic
engineering study for gas conversion and for the power plant conversion from
furnace oil to gas. The Company has already placed orders with
With effect from April 1, 2010, the government introduced
a Nutrient Based Subsidy (NBS) policy for Phosphatic and Potassic fertilizers.
In terms of this policy, each nutrient content in fertilizer, is assigned a
value and the aggregate of these values is considered to arrive at the
concession rates. Under NBS, the government announces the rate of subsidy in advance
for the full year thereby enabling higher import and sale of fertilizers to
meet the market needs.
SUBSIDIARY COMPANY
MCF International Limited, the wholly
owned subsidiary of the Company had filed a Scheme, for its amalgamation with
the Company, before the Honorable High Court of Karnataka, with the effective
date of April 1, 2010. This scheme of amalgamation has been sanctioned by the
Honorable High Court on July 8, 2011.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Industry Structure and Developments
The Company has only one business segment, viz.
Fertilizers. It manufactures both Nitrogenous and Phosphatic fertilizers and is
the only manufacturer of fertilizers in the state of Karnataka. About 65% of
the Company’s products are sold in the state of Karnataka, which meets about
25% of the needs of the farmers in the State. The Company maintains a modest
share of the market in the neighbouring states of Kerala, Tamil Nadu, Andhra
Pradesh and
Threats and Opportunities
Stage III of New Pricing Scheme (NPS) for Urea announced
in March 2007 stipulated that existing Naphtha/Furnace Oil/LSHS units should
convert to gas by 31.3.2010. Given the gas supply situation, the Government of
India has extended the deadline for conversion provisionally until further
orders. The Company has signed a Gas Supply Agreement with Indian Oil
Corporation and a Gas Transmission Agreement with GAIL (
Future Outlook
The demand for both Nitrogenous and Phosphatic fertilizers
in
Considering the significant success achieved due to its
focus on Plant Nutrition business and given the enormous potential for growth,
the Company would continue to focus and grow in that area and also look to
diversify into other products that are synergistic with the existing
operations.
Financial
and Operational Performance
a) Production
Performance
A total production of 3,79,500 MTs of Urea, 2,23,552 MTs
of Complex fertilizers [DAP/ NP], and 15,330 MTs of Ammonium Bi-Carbonate was
achieved during the year.
b) Operating
Results
The Company achieved a turnover of Rs.25238.300
Millions against Rs.20817.300 Millions, in the previous year along with a
modest increase in volume terms. The Profit Before Tax (PBT) was Rs.1120.400 Millions
compared to Rs.845.300
Millions in the previous year.
c) Resource
Utilization
The gross fixed assets as at 31.3.2011 were Rs.7031.900 Millions
as compared to Rs.6532.300
Millions in the previous year. During the year, the company added assets worth Rs499.600 Millions
(net).
d) Working
Capital
Net working capital excluding cash and bank balances, as
on 31.3.2011 was Rs.3057.700 Millions. Book debts outstanding for more than 6
months as on 31.3.2011 stood at Rs.1.944 Millions as compared to Rs.0.088 Millions in
the previous year.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER and NINE MONTHS
ENDED 30.06.2011
(Rs.
in millions)
|
Particulars |
For the Quarter
Ended |
|
30.06.2011 |
|
|
Unaudited |
|
|
(a) Net Sales / Income from Operations |
5834.548 |
|
(b) Other Operating Income |
26.650 |
|
Total Income (a+b) |
5861.198 |
|
Expenditure : |
|
|
a. (Increase) / Decrease in Stock in trade
and work in progress |
(1078.249) |
|
b. Consumption of raw materials |
3383.679 |
|
c. Purchase of traded goods |
1435.852 |
|
d. Employees cost |
148.227 |
|
e. Depreciation |
70.958 |
|
f. Power and fuel |
1078.498 |
|
g. Other expenditure |
455.962 |
|
h. Total expenditure |
5494.927 |
|
Profit from operations before Interest
(1-2) |
366.271 |
|
Interest |
41.744 |
|
Profit (+) / Loss (-) before tax and
exceptional items (3-4) |
324.527 |
|
Exceptional items - Gain /(Loss) on sale
and Gain /(Diminution) in value of Fertilizer Companies Government of India
Special Bonds |
0.000 |
|
Profit (+) / Loss (-) before tax (5-6) |
324.527 |
|
Provision for Tax |
27.478 |
|
Net Profit (+) / Loss (-) for the period
(7-8) |
297.049 |
|
Paid-up equity share capital |
1185.486 |
|
Reserves excluding Revaluation Reserves |
|
|
Basic and Diluted EPS not annualised (Rs.) |
2.51 |
|
Public shareholding |
|
|
- Number of shares |
82438375 |
|
- Percentage of shareholding |
69.56 |
|
Promoters and promoter group Shareholding |
|
|
a) Pledged / Encumbered |
|
|
- Number of shares |
22988438 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter group) |
63.72 |
|
- Percentage of shares (as a % of the
total share capital of the company) |
19.40 |
|
b) Non Encumbered |
|
|
- Number of shares |
13088337 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter group) |
36.28 |
|
- Percentage of shares (as a % of the
total share capital of the company) |
11.04 |
Notes:
1. The concession for Urea for the quarter has been estimated and accounted
as per the pricing policy parameters applicable to Stage-III of the New Pricing
Scheme, which has been extended from 01.4.2010 on provisional basis until
further orders.
2. DAP, 20:20:00:13 and MOP subsidy has been accounted based on rates
announced by GOI under Nutrient Based Subsidy policy for 2010-11.
3. The Company's operations predominantly relate to the fertilizer
segment and profitability is dependent on prevailing GOI concession policy.
4. Depreciation includes Rs.16.700 Millions towards impairment of DG
sets to be replaced.
5. Provision for taxation for current quarter is worked out considering
concessions available in the Income Tax Act
6. MCF International Limited the wholly owned subsidiary has been
amalgamated with the company as per Honorable High Court of Karnataka order
dated 8.7.2011 w.e.f. 1.4.2010. Hence the figures of the current year are not
comparable with those of the previous year.
7. During the quarter 9 Investor complaints were received and redressed.
There were no complaints pending at the beginning and at the end of the
quarter.
8. The Board of Director of the Company has recommended a dividend of
Rs.1.20 Per share of Rs.10 each for the financial year ended March 31, 2011.
10. The above results were taken on record by the Board of Directors at
its meeting on 2.08.2011
The Auditors have carried out a limited review.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2011 (Rs.
in millions) |
|
a) Outstanding Bank Guarantees |
35.837 |
|
b) Claims against the Company not acknowledged as debt. Disputed
arrears of electricity charges, under appeal by Company / KPTCL |
23.858 |
FIXED ASSETS:
·
·
·
Buildings
·
Railway Sidings
·
Roads, Drainage and Culverts
·
Plant and Machinery
·
Intangible Assets
·
Electrical Installations and Fittings
·
Equipment
·
Cranes and Locomotives
·
Furniture and Fixtures
·
Vehicles
- Owned
- Leased
·
Books
WEBSITE DETAILS:
CORPORATE PROFILE
Subject, with a turnover of over Rs.20817.300 millions (FY 2009-2010),
is the only manufacturer of chemical fertilizers in the state of Karnataka. The
factory is strategically located at Panambur, 9 km north of Mangalore City, on
the banks of the Gurpur River, in front o the New Mangalore Port. The plant is
well connected, both by rail and road. The
The Company is a part of the UB Group with Group shareholding of 30.44%. Dr.
Vijay Mallya is Chairman of the Board of Directors. The operations are managed
by a team of highly dedicated and experienced professionals.
The
The Company has capacity to manufacture 2,17,800 MT Ammonia (intermediate
product), 3,79,500 MT Urea, 2,55,500 MT Phosphatic Fertilizers (DAP and NP
20:20:00:13), 15,330 MT Ammonium Bi-Carbonate (ABC) and 33,000 MT Sulphuric
Acid (SAP) annually. . The design and engineering of the Ammonia/Urea plants
was done by Humphreys and Glasgow Limited,
The Phosphatic plant is designed and engineered by Toyo Engineering Corporation,
The construction work started with the first pile driven on October 15,
1972 by the then Chief Minister, Shri D. Devaraj Urs.
The Ammonia/Urea plants were commissioned in March 15, 1976.
1976 - Ammonia and Urea production commenced
1982 - 60 tons per hour auxiliary boiler installed Ammonium Bi-carbonate
plant commissioned
1984 - Purge gas recovery unit installed
1985 - Captive power plant commissioned
1986 - Di-ammonium phosphate plant went on stream
1993 - 2.5 Million Gallons reservoir constructed
1999 - Marketing of Granulated Fertilizers
2002 - Installation of Pipe Reactor.
20:20:0 and 16:20:0 complexes produced Marketing of micro nutrient -
Zinc Sulphate
2003 - SAP R/3, integrated software system, OPERATION MITE, implemented.
MCF receives ISO 14001 Certification
2005 - Receives OHSAS certification
2006 - Installation of 100 TPD Sulphuric Acid plant
2008 - Installation of Imported Fertilizers Handling Unit
AWARDS AND RECOGNITIONS
From the year 1996-97, the Company’s performance dramatically improved
with higher levels of production in all the plants. In fact, the rated capacity
of Urea was manufactured for the first time in 1996-97 since commissioning in
1976, a singular achievement!
·
FAI Award for 'Improvement in overall performance
of a Company’ for three consecutive years 1996-97, 1997-98 and 1998-99.
·
Letter of recognition in 1997 from Directorate
General of Factory advisory Services and Labour Institutes (DGFASLI) for
maintaining good safety and occupational health standards.
·
MCF received the ‘Honest Tax paying businessmen’
award from Commercial Taxes Department, Mangalore Division, a unique initiative
taken by Government of Karnataka to honour the prompt Tax payers. Mr. P. C.
Jain, Senior Vice President (Works), MCF, Mangalore, received the award in a
felicitation function held at Mangalore on 18th March 2005.
·
MCF has been awarded the prestigious certificates
on 1. Environment Management System conforming to ISO 14001:2000 in 2003 which
was updated to latest version ISO 14001:2004 in 2005 and 2. Occupational Health
and Safety Management System conforming to OHSAS 18001:1999 standard in 2005 which
was updated to latest version OHSAS 18001:2007 in 2008.
The certificates were awarded by DET NORSKE VERITAS (DNV), the
- FAI
Environmental Protection Award in NP/NPK Fertilizer Plants for the year
2009-2010.
Business
Description
Subject is engaged in the business of manufacture, purchase and sale of
fertilizers and related products. The Company is engaged in manufacturing of
nitrogenous and phosphatic fertilizers. The range of products manufactured by the
Company include urea, di-ammonium phosphate, muriate of potash, granulated
fertilizers, micronutrients, soil conditioners and specialty fertilizers.
During the fiscal year ended March 31, 2010 (fiscal 2010), the Company
manufactured 3,79,500 metric tons of urea; 2,82,173 metric tons of complex
fertilizers, 2,82,173 metric tons of Di-Ammonium Phosphate (DAP) and 15,330
metric tons of ammonium bi-carbonate. The wholly owned subsidiary of the
Company is MCF International Limited The Company is a part of the UB Group. For
the fiscal year ended 31 March 2010, Subject's revenues decreased 16% to
RS20.94B. Net income increased 92% to RS535.7M. Revenues reflect a decrease in
income from operations and lower other income. Net income was offset by lower
materials consumed, a decrease in interest and finance charges, lower
advertisement expenses and the absence of diminution value in fertilizer bonds.
BOARD OF DIRECTORS
Mr.
Deepak Anand
Managing
Director, Executive Director
He has over 36 years senior managerial experience in
Mr.
Subhash Raghunath Gupte
Non-Executive
Director
He joined Air
Mr.
Pratap Narayan
Non-Executive
Independent Director
Mr. Pratap Narayan started his career in the Sales Tax Department of
Madhya Pradesh. He worked in Indian Railways in various capacities before
taking over as Deputy Director and Joint Director Planning in Railway Board. He
has travelled in connection with various international projects. He was the
first Executive Director of Fertilizer Industry Co-ordination Committee.
Thereafter worked for about a year as CMD, HFC and retired as a Director
General of the Fertilizer Association of India. Mr. Narayan has taken up
various international assignments and was member of various committees
appointed by the Government on policy issues such as Gokak Committee, to review
pricing of phosphates and energy consumption norms under Stage II of new
pricing scheme for Indian Urea Industry etc., Mr. Narayan has also presented
papers on Policy issues and has co-authored a book with Dr. H L S Tandon on
Indian Agriculture, Past, Present and Future. He holds M. Sc., (Zoology),
IRTS(Retd.).
Mr.
B. S. Patil
Non-Executive
Independent Director
He retired as Chief Secretary to Government of Karnataka and held
important assignments. He has wide ranging experience from heading state
financial institutions to industrial development. The industrial and IT
development in Karnataka owes a great deal to him for initiating imaginative
policies for attracting investments. He is an Indian Administrative Service
[Retd.]. He holds directorships in the follwing companies: UB International
Trading Limited, Sadashiv Sugars Limited, Shetron Limited, UB [Holdings]
Limited, Suprajit Engineering Limited, Grover Vineyards Limited, Surana
Industries Limited, AMR Constructions Limited and Scotts Garments Limited
Mr.
N. Sunder Rajan
Non-Executive
Independent Director
He is an officer of the Indian Audit and Accounts Service, has served in
various capacities, during his career in Government of India spanning 36 years
in the Indian Audit and Accounts Department and in the Central Ministries of
Finance, Civil Aviation and Tourism, besides the Lok Sabha Secretariat
assisting the Public Accounts Committee of Parliament in enforcing executive
accountability and the Fifth Central Pay Commission. As Deputy Comptroller and
Auditor General of
Mr.
K. Prabhakara Rao
Whole-Time
Director
He has 31 years of Experience. He holds B.E.- Chemical Engineering. He
has been working with MCF since 1978 and has handled various responsibilities
in the Company. As Director Works, he is presently responsible for production,
maintenance, quality control, technical services, projects, safety and
logistics at the Company’s plant in Mangalore. Mr.Rao has widely travelled and
participated in many National and International symposiums and has attended
various Management Development Programs in premier Institutions such as IIM
Bangalore and Ahmedabad.
Mr.
Shrikant Gordhandas Ruparel
Non-Executive
Independent Director
He was the Managing Director of Kolhapur Sugar Mills between 1971 and
1981. He was also on the board of State Bank of
PRESS RELEASE:
Mangalore
Chemicals and Fertilizers Limited Recommends Dividend
August 02, 2011
Mangalore Chemicals and Fertilizers Limited announced that the Board of
Directors of the Company at its meeting held on August 02, 2011, inter alia,
has considered and approved/recommended a dividend of INR1.20 per equity share
of nominal value of INR10 for the financial year 2010-2011, subject to the
approval of the shareholders. The dividend will be paid / dispatched to the
shareholders within 30 days from the date of such approval.
Re-appointment of
Whole-time Director
August 02, 2011
Mangalore Chemicals and Fertilizers Limited has informed BSE that the
Board of Directors of the Company at its meeting held on August 02, 2011, inter
alia, has approved the re-appointment of Mr. K Prabhakar Rao, as whole-time
Director of the Company for a further period of five years w.e.f. October 27,
2011 or the date of his superannuation from the Company, whichever is earlier.
Financial Results
for June 30, 2011 and Audited March 31, 2011
August 02, 2011
Mangalore Chemicals and Fertilizers Limited has informed BSE about the
Financial Results for the period ended June 30, 2011 and Audited March 31,
2011.
Mangalore
Chemicals and Fertilizers Limited Updates on Scheme of Amalgamation
July 21, 2011
Mangalore Chemicals and Fertilizers Limited announced that the Scheme of
Amalgamation to merge MCF International Limited, the wholly-owned subsidiary of
the Company with the Company has been approved by the Honorable High Court of
Karnataka,
Board to consider
Dividend
July 21, 2011
Mangalore Chemicals and Fertilizers Limited has informed BSE that a
meeting of the Board of Directors of the Company will be held on August 02,
2011, inter alia, to consider the following: 1. unaudited financial results of
the Company for the first quarter ended June 30, 2011.2. Audited financial
results for the year ended March 31, 2011.3. Recommendation of dividend, if
any, for the year 2010-2011.
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.50.08 |
|
|
1 |
Rs.80.36 |
|
Euro |
1 |
Rs.68.83 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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.