MIRA
INFORM REPORT
|
Report Date : |
16.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
|
|
|
|
|
Registered
Office : |
3 Walchand Terrace, Opposite Air Conditioned Market, Tardeo,
Mumbai-400034, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.09.2010 |
|
|
|
|
Date of
Incorporation : |
25.11.1908 |
|
|
|
|
Com. Reg. No.: |
11-000291 |
|
|
|
|
Paid-Up Capital
: |
Rs. 76.140 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74999MH1908PLC000291 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMW02073B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACW0541M |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Sugar Mill Machinery, High speed
Centrifugals, Gear and gear Boxes, Cement Making Plant, Nuclear and Chemical Machinery,
Water Tube Boilers and Steam Accumulators. |
|
|
|
|
No. of Employees
: |
Information not divulged by management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 16000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular an 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 – 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 DECLINED BY
|
Name : |
Mr. S. C. Bhagwat |
|
Designation : |
Deputy General Manager Finance and Deputy Company Secretary |
|
Contact No.: |
91-22-24939498 |
|
Date : |
27.08.2011 |
LOCATIONS
|
Registered Office : |
3 Walchand Terrace, Opposite Air Conditioned Market, Tardeo,
Mumbai-400034, |
|
Tel. No.: |
91-22-40287109/ 23692295/ 23630097 |
|
Fax No.: |
91-22-23634527 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Marketing Division : |
Walchand House,
15/1/B-2, Kothrud, Pune – 411038, |
|
Tel. No.: |
91-20-25436655 /
56 / 58 |
|
Fax No.: |
91-20-2542070 /
25451747 |
|
|
|
|
Factory 1 : |
Walchandnagar,
District Pune, |
|
Tel. No.: |
91-2118-252235 to
252239 |
|
Fax No.: |
91-2118-252358 |
|
|
|
|
Factory 2 : |
Satara Road, District
Satara - 415010, Maharashtra, India |
|
Tel. No.: |
91-2163-227201 /
227204/ 227316 |
|
Fax No.: |
91-2163-227205 |
|
E-Mail : |
|
|
|
|
|
Factory 3 : |
Attikola, District
Dharwad - 580003, Karnataka, India |
|
Tel. No.: |
91-836-448565/
2447359/ 2442382 |
|
Fax No.: |
91-836-448508 |
|
E-Mail : |
|
|
|
|
|
Marketing and Project Office: |
Walchand House, 167A, 2/8+2/9, |
|
Tel. No.: |
91-20-30252400 |
|
Fax No.: |
91-20-30252411 (Material) 91-20-30252652 (Mailing and Bulk) 91-20-30252607 (MPD) 91-20-30252746 (Cement) 91-20-30252868 (Boiler) 91-20-30252987 (GEAR/ Sugar/ NBV) 91-20-30252501 (HR) |
|
E-Mail : |
Sugar Project: wilsugar@wealchand.com (91-20-30252400) Boiler and Power Projects : wilboiler@walchand.com
(91-20-30252400) Gear: wilgear@walchand.com
(91-20-30252400) Cement Project: wilcemn@wlachand.com
(91-20-30252400) Mineral Process: wilmh@walchand.com
(91-20-30252400) Oil and Gas: wiloilandgas@walchand.com
(91-20-25502806) Special Projects : wilspd@walchand.com
(91-2118307100) |
|
|
|
|
Oil and Gas : |
215- Raikar Chambers, Govandi (East), Mumbai – 400088, Maharashtra,
India |
|
Tel. No.: |
91-22-25502807/25502808 |
|
Fax No.: |
91-22-25502804 |
|
E-mail : |
|
|
|
|
|
Branches: |
Located at: ·
·
Hyderabd ·
Chennai ·
Kolkata ·
Pune |
DIRECTORS
As on 30.09.2010
|
Name : |
Mr. Chakord L Doshi |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Dr. P K Basu |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Anil Kakodkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dilip J Thakkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. U. Rishinghani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J.L. Deshmukh |
|
Designation : |
Managing Director and Chief Executive Officer |
|
|
|
|
Name : |
Mrs. Aarti H Vissanji |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S B Das |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Chirag C Doshi |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. G. N. Bajpai |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Vice Admiral (Retd.) S. K. K. Krishnan |
|
Designation : |
Senior President – Defence, Hydrocarbons and Gear |
|
|
|
|
Name : |
Mr. V. T. Pawar |
|
Designation : |
Senior President – Sugar, Boiler and Financial Processes |
|
|
|
|
Name : |
Mr. S. S. Gangavati |
|
Designation : |
President – Strategic Planning and Market Research |
|
|
|
|
Name : |
Mr. V. M. Parthasarathy |
|
Designation : |
President – Special Products |
|
|
|
|
Name : |
Mr. V. G. Ratnaparakhi |
|
Designation : |
President – Manufacturing Unit-Walchandnagar |
|
|
|
|
Name : |
Mr. G. S. Prakash |
|
Designation : |
President – Boiler and Sugar |
|
|
|
|
Name : |
Mr. J. N. Nandurkar |
|
Designation : |
President – Corporate H.R. and Special Projects |
|
|
|
|
Name : |
Mr. L. Ranganathan |
|
Designation : |
President – New Business Ventures |
|
|
|
|
Name : |
Mr. Arvind Shore |
|
Designation : |
President – Mining and Bulk Materials Handling |
|
|
|
|
Name : |
Mr. M. J. Devis |
|
Designation : |
President – Turbine Business Group |
|
|
|
|
Name : |
Mr. Kushal Saha |
|
Designation : |
President – Foundry Division, Satara Road |
|
|
|
|
Name : |
Mr. Swarup Mukherjee |
|
Designation : |
President – Projects |
|
|
|
|
Name : |
Mr. P. K. Mahadevan |
|
Designation : |
President – Materials |
|
|
|
|
Name : |
Mr. V. D. Vaingankar |
|
Designation : |
President – Manufacturing Technology |
|
|
|
|
Name : |
Vice Admiral (Retd.) N. M. Nadaph |
|
Designation : |
President – Walchand Technology Group |
|
|
|
|
Name : |
Mr. V. R. Joshi |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. S. R. Deshmukh |
|
Designation : |
Chief Information Officer |
|
|
|
|
Name : |
Mr. M. H. Purwat |
|
Designation : |
Sr. Vice President – Finance |
|
|
|
|
Name : |
Mr. P. C. Bhagwat |
|
Designation : |
Sr. Vice President – Cement |
|
|
|
|
Name : |
Mr. A. B. Kamlapur |
|
Designation : |
Vice President – Precision Instruments Division, Dharwad |
|
|
|
|
Name : |
Mr. G. S. Agarwal |
|
Designation : |
Company Secretary. |
|
|
|
|
Name : |
Mr. S. C. Bhagwat |
|
Designation : |
Deputy General Manager Finance and Deputy Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
95,790 |
0.25 |
|
|
15,463,613 |
40.62 |
|
|
379,210 |
1.00 |
|
|
379,210 |
1.00 |
|
|
15,938,613 |
41.87 |
|
|
|
|
|
|
5,000,000 |
13.13 |
|
|
5,000,000 |
13.13 |
|
Total shareholding of Promoter and Promoter Group (A) |
20,938,613 |
55.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
6,500 |
0.02 |
|
|
203,015 |
0.53 |
|
|
12,000 |
0.03 |
|
|
2,296,200 |
6.03 |
|
|
263,519 |
0.69 |
|
|
2,781,234 |
7.31 |
|
|
|
|
|
|
1,688,919 |
4.44 |
|
|
|
|
|
|
11,960,684 |
31.42 |
|
|
237,521 |
0.62 |
|
|
463,234 |
1.22 |
|
|
260,411 |
0.68 |
|
|
6,630 |
0.02 |
|
|
175,898 |
0.46 |
|
|
5,870 |
0.02 |
|
|
14,425 |
0.04 |
|
|
14,350,358 |
37.69 |
|
Total Public shareholding (B) |
17,131,592 |
45.00 |
|
Total (A)+(B) |
38,070,205 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
38,070,205 |
- |
“PROMOTER AND
PROMOTER GROUP”
|
Name of the
Shareholder |
Total Shares
held |
|
|
Number |
As a % of |
|
|
Walchand Kamdhenu Commercials Private Limited |
9,861,363 |
25.90 |
|
Walchand Great Achievers Private Limited |
5,260,160 |
13.82 |
|
Olsson Holdings Inc |
2,000,000 |
5.25 |
|
Rodin Holdings Inc |
3,000,000 |
7.88 |
|
Doshi Champa C |
379,210 |
1.00 |
|
Walchand Chiranika Trading Private Limited |
342,090 |
0.90 |
|
Lalchand Hirachand |
8,090 |
0.02 |
|
Lalchand Hirachand |
7,200 |
0.02 |
|
Doshi Champa C. |
7,170 |
0.02 |
|
Doshi Champa Chakor |
3,180 |
0.01 |
|
Lalchand Hirachand |
120 |
0.00 |
|
Lalchand Hirachand |
90 |
0.00 |
|
Lalitabai Lalchand |
10 |
0.00 |
|
Chirag C Doshi |
14,000 |
0.04 |
|
Doshi Chakor Lalchand |
12,500 |
0.03 |
|
Doshi Chakor Lalchand |
12,250 |
0.03 |
|
Chakor L Doshi |
10,000 |
0.03 |
|
Doshi Chakor L |
5,000 |
0.01 |
|
Doshi Chakor L |
5,000 |
0.01 |
|
Doshi Chakor L |
5,000 |
0.01 |
|
Doshi Chakor Lalchand |
2,500 |
0.01 |
|
Doshi Chakor L |
2,000 |
0.01 |
|
Doshi Chakor Lalchand |
1,680 |
0.00 |
|
Total |
20,938,613 |
55.00 |
"Public"
and holding more than 1% of the Total No. of Shares
|
Name of the
Shareholder |
No. of Shares |
Shares as % of
Total No. of Shares |
|
Life Insurance Corporation of India |
1,752,365 |
4.60 |
|
Oriental Insurance Company Limited |
543,835 |
1.43 |
|
Total |
2,296,200 |
6.03 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sugar Mill Machinery, High speed
Centrifugals, Gear and gear Boxes, Cement Making Plant, Nuclear and Chemical
Machinery, Water Tube Boilers and Steam Accumulators. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS
As on 30.09.2010
|
Particulars |
Unit |
Installed
|
Production
|
|
Heavy Engineering Division |
|
|
|
|
Sugar Mill
Machinery |
Units |
-- |
3 |
|
Sugar Plants |
Units |
-- |
-- |
|
Milling Plants |
Units |
-- |
-- |
|
High Speed
Centrifugals |
Units |
-- |
67 |
|
Gear & Gear
Boxes |
Sets |
-- |
39 (MT 340) |
|
Water Tube
Boilers |
Units |
-- |
5 |
|
Foundry Division : |
|
|
|
|
Castings |
M.T |
9000 |
4796 |
|
Precision Instruments Division : |
|
|
|
|
Pressure/Temperature
Gauges |
Nos. |
-- |
462163 |
Heavy Engineering Division
|
Particulars |
Unit |
|
|
Installed
Capacity |
|
Lathe |
Per annum |
|
|
169371 |
|
Boring and Hobbing |
Per annum |
|
|
172584 |
|
Drilling |
Per annum |
|
|
156213 |
|
Gear Cutting and Grinding |
Per annum |
|
|
50949 |
|
Slotting |
Per annum |
|
|
26163 |
|
Planning |
Per annum |
|
|
26163 |
|
Milling |
Per annum |
|
|
39474 |
|
Furnace |
Per annum |
|
|
92106 |
|
Other Machine Tools |
Per annum |
|
|
184212 |
Foundry Division
|
Particulars |
Unit |
|
|
Installed
Capacity |
|
Lathe |
Per annum |
|
|
210432 |
|
Boring and Hobbing |
Per annum |
|
|
93023 |
|
Drilling |
Per annum |
|
|
146688 |
|
Gear Cutting and Grinding |
Per annum |
|
|
9792 |
|
Slotting |
Per annum |
|
|
9792 |
|
Planning |
Per annum |
|
|
19488 |
|
Milling |
Per annum |
|
|
137088 |
|
Furnace |
Per annum |
|
|
53856 |
|
Other Machine Tools |
Per annum |
|
|
73152 |
The Break up of
Production
|
Particulars |
Unit |
|
|
Actual
Production |
|
Captive |
MT |
|
|
380 |
|
Outstanding Customer’s Castings |
MT |
|
|
4417 |
GENERAL INFORMATION
|
No. of Employees : |
Information not divulged by management |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
K.S. Aiyar and Company Chartered Accountant |
|
|
|
|
Associates/Subsidiaries : |
· Bombay Cycle and Motor Agency Limited · Walchand Great Achievers Private Limited · Walchand Kamdhenu Commercials Private Limited · Walchand Chiranika Trading Private Limited · Chiranika Enterprises · Chiranika Corporation · Chiranika Properties · Walchand Botanicals Private Limited · Rodin Holdings Inc. · Olsson Holdings Inc. · Vinod Shashank Chakor Private Limited · Chirag Enterprises · Bharat Capital Services Private Limited · Indpro Electronic System (India) Private Limited · Walchand Engineers Private Limited · Walchand Projects Private Limited · Walchand Power Systems Private Limited · Walchand Oil and Gas Private Limited · Walchand Leisure Realty Private Limited · Walchand BMH Private Limited |
CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs. 2/- each |
Rs. 240.000 Millions |
|
50000 |
10% Cumulative Preference Shares |
Rs. 100/- each |
Rs. 5.000 Millions |
|
50000 |
Preference Shares |
Rs. 100/- each |
Rs. 5.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38070205 |
Equity Shares |
Rs. 2/- each |
Rs. 76.140
Millions |
|
|
|
|
|
NOTES:
The Subscribed and paid up Equity Capital includes the following:
(1) 2,47,95,020 Equity Shares issued as Bonus Shares out of Share Premium, General Reserve and Capital Reserve.
(2) 2,50,000 Equity Shares issued for consideration other than for Cash, pursuant to a contract.
(3) 1,21,300 Equity Shares issued on conversion of Debentures.
(4) 17,28,740 Equity Shares issued without payment being received in cash to the share-holders of the erstwhile Cooper Engineering Limited and erstwhile Tiwac Industries Limited, in terms of the Schemes of Amalgamation sanctioned by Bombay High Court.
(5) 80,00,000 Equity Shares allotted to the allotees of the Warrant on Preferential basis upon exercise of Conversion option by them (inclusive of 40,00,000 Equity Shares issued as Bonus and included in Sr. No. 1 above).
(6) 25,145 Equity Shares issued under Employees Stock Purchase Scheme, 2008 (ESPS) at par to the permanent Employees.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
76.140 |
76.140 |
76.090 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4034.096 |
4196.083 |
4142.452 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4110.236 |
4272.223 |
4218.542 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
888.922 |
1099.201 |
731.573 |
|
|
2] Unsecured Loans |
150.300 |
150.340 |
151.143 |
|
|
TOTAL BORROWING |
1039.222 |
1249.541 |
882.716 |
|
|
DEFERRED TAX LIABILITIES |
58.973 |
105.904 |
78.633 |
|
|
|
|
|
|
|
|
TOTAL |
5208.431 |
5627.668 |
5179.891 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2814.473 |
2907.456 |
2973.119 |
|
|
Capital work-in-progress |
585.199 |
523.711 |
222.560 |
|
|
|
|
|
|
|
|
INVESTMENT |
467.574 |
462.229 |
417.707 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2231.490
|
1717.259
|
1204.845 |
|
|
Sundry Debtors |
3572.506
|
2663.327
|
3380.094 |
|
|
Cash & Bank Balances |
347.232
|
414.854
|
104.833 |
|
|
Other Current Assets |
2.911
|
2.282
|
4.412 |
|
|
Loans & Advances |
1686.555
|
1087.038
|
801.769 |
|
Total
Current Assets |
7840.694
|
5884.760
|
5495.953 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2557.394 |
1657.775 |
2059.333 |
|
|
Other Current Liabilities |
3880.373
|
2415.512
|
1728.503 |
|
|
Provisions |
61.742
|
77.201
|
141.612 |
|
Total
Current Liabilities |
6499.509
|
4150.488
|
3929.448 |
|
|
Net Current Assets |
1341.185
|
1734.272
|
1566.505 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5208.431 |
5627.668 |
5179.891 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5374.003 |
4697.379 |
6364.302 |
|
|
|
Erection, Job Work and Services |
1349.708 |
428.774 |
596.129 |
|
|
|
Other Income |
213.078 |
122.995 |
42.067 |
|
|
|
TOTAL (A) |
6936.789 |
5249.148 |
7002.498 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material and Components Consumed |
3963.226 |
3102.089 |
4393.909 |
|
|
|
Payment to and provision to employees |
616.181 |
532.047 |
498.555 |
|
|
|
Manufacturing, Administration and Selling Expenses |
2011.639 |
1422.627 |
1350.850 |
|
|
|
Expenditure Capitalized |
(1.006) |
(3.907) |
(9.747) |
|
|
|
Decrease/ Increase in Stocks |
(91.909) |
(332.434) |
46.338 |
|
|
|
Exceptional Item |
11.277 |
0.000 |
|
|
|
|
TOTAL (B) |
6509.408 |
4720.422 |
6279.905 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
427.381 |
528.726 |
722.593 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES/ INTEREST (D) |
74.901 |
69.737 |
46.334 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
352.480 |
458.989 |
676.259 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
133.520 |
105.255 |
70.945 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
218.960 |
353.734 |
605.314 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(3.931) |
119.721 |
207.621 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
222.891 |
234.013 |
397.693 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
989.191 |
823.119 |
509.707 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
22.289 |
23.401 |
39.770 |
|
|
|
Proposed Dividend |
38.070 |
38.070 |
38.045 |
|
|
|
Tax on Proposed Dividend |
6.323 |
6.470 |
6.466 |
|
|
BALANCE CARRIED
TO THE B/S |
1145.400 |
989.191 |
823.119 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
511.193 |
902.050 |
1110.508 |
|
|
|
Other Earnings |
88.275 |
67.185 |
124.306 |
|
|
TOTAL EARNINGS |
599.468 |
969.235 |
1234.814 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
76.952 |
165.896 |
245.274 |
|
|
|
Components and Spares Parts |
270.454 |
316.159 |
86.217 |
|
|
|
Capital Goods |
7.281 |
5.468 |
166.067 |
|
|
TOTAL IMPORTS |
354.687 |
487.523 |
497.558 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic and
Diluted |
5.85 |
6.15 |
12.32 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
31.12.2010 1st
Quarter |
31.03.2011 2nd
Quarter |
30.06.2011 3rd
Quarter |
|
Net Sales |
|
1994.100 |
2874.800 |
2124.900 |
|
Total Expenditure |
|
1881.900 |
2731.600 |
2013.900 |
|
PBIDT (Excl OI) |
|
112.200 |
143.200 |
111.000 |
|
Other Income |
|
0.400 |
3.900 |
1.600 |
|
Operating Profit |
|
112.600 |
147.100 |
112.600 |
|
Interest |
|
19.000 |
38.600 |
44.300 |
|
PBDT |
|
93.600 |
108.500 |
68.300 |
|
Depreciation |
|
35.300 |
36.300 |
42.700 |
|
Profit Before Tax |
|
58.300 |
72.200 |
25.600 |
|
Tax |
|
13.600 |
22.800 |
8.300 |
|
Profit After Tax |
|
44.700 |
49.400 |
17.300 |
|
Net Profit |
|
44.700 |
49.400 |
17.300 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
PAT / Total Income |
(%) |
3.21
|
4.46
|
5.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.07
|
7.80
|
9.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.05
|
4.02
|
9.48 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.08
|
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.83
|
1.26
|
1.14 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.21
|
1.42
|
1.40 |
LOCAL AGENCY FURTHER INFORMATION
History:
Incorporated in
1960, Walchandnagar Industries (SUBJECTS) belonging to the Walchand group. Other
group companies include -- Premier, Ravalgaon Sugar, Indian Hume Pipe, etc. It
is mainly engaged in the manufacture of sugar manufacturing machinery and
engineering products like gear boxes, heat exchangers, etc.
Subject’s major clients are Oswal Foods, Anand Agro, Indian Navy, etc. Subject
has signed a MoU with Onoda Engineering Company,
The company received ISO-9001 certification for its operations at Walchandnagar
from Lloyds Register Quality Assurance.
In 1999-2000, the company has developed energy efficient equipments for sugar
manufacturing machinery and has tied up with M/s UBE of Japan for supply of
pregrinders and grinding mills for cement machinery with superior features.
During 2001 the company has commissioned two EPC projects for generation of
power from agricultural waste. The company made a diversification in 2001-02 by
entering into hospitality business.
Performance:
During the year
the income of the Company showed growth from Rs. 5249.100 Millions to Rs.
6936.800 Millions. This reflects a rise of 32% over the previous year. However,
profit before tax declined from Rs. 353.700 Millions to Rs. 219.000 Millions
due to increase in fixed costs in respect of depreciation, manpower and
administrative costs that had to be incurred in order to be prepared for
execution of large value orders for next year and effect of competitive pricing
in the current market scenario.
Current Year:
The orders on hand
as on 30.09.2010 were at Rs. 24522.200 Millions as compared to Rs. 14631.500
Millions as on 30.09.2009.
Export and Overview Projects:
During the year
the Company achieved the export turnover of Rs. 599.500 Millions as against Rs.
969.200 Millions, in the previous year. The export orders on hand as on
30.09.2010 are at Rs. 4825.200 Millions. During the year, the Company executed
orders for Waste Crushing, Grinding and Pumping Plant of Konkola Copper Mines
plc. Zambia, 3500 TPD Cement plant and 100 TPH Cement Clinker Grinding Unit of
Maweni Limestone Limited, Tanzania, Sugar and Boiler projects in Ethiopia.
MANAGEMENT DISCUSSION AND ANALYSIS
Economic Overview
The Financial Year
October 2009 – September 2010 (Year 2009-10), began with a mixed impact of the
severe US economic crisis and strong domestic market recovery. Thankfully, the
Indian economy absorbed the impact of a potentially crippling economic slowdown
witnessed in various parts of the world in 2008-09 with remarkable resilience
and moved on to achieve growth parameters, with GDP Growth rate set to reach
pre crisis levels by fiscal 2010-11. Stock markets continued its bull run with
30 scrip sensitive index (SENSEX) of the Bombay Stock Exchange gained over 17%
to cross 20000 mark by September, 2010.
The Company
operates in the capital goods sector where generally the impact of economic
recovery is witnessed with a lag. In keeping with this trend, the sales
performance of the Company improved during the year 2009-10 and especially in
Quarter 4, where significant demand pull was witnessed from various end user
segments.
Financial Overview
Sales and
Profitability
The PAT has the
impact of the reversal of deferred tax liability created in earlier years upon
final settlement of the dispute with Projects and Equipment Corporation (PEC)
in the matter of Cement Project at Padang Indonesia.
The revenue for
the year as a whole has shown a growth of 32% over the previous year. However,
there is a drop in the EBIDTA and PBT margin on account of the following:
·
Increase in fixed costs in respect of depreciation,
manpower and administrative costs in order to prepare for significantly larger
revenue on the back of strong order book.
·
Competitive pricing in the current market scenario.
Order Book
The Order Book of
the Company has reached all time high level with the outstanding orders at Rs.
24520.000 Millions as on 30.09.2010. Following are the highlights of the order
book:
·
It includes order for 12 Co-Gen Power Projects
aggregating to 183 MW and Sugar plant modernization/expansion from Tamilnadu
State Electricity Board (TNEB). This is the single largest order ever to be won
by the Company.
·
The order book underlines the strong engagement of
the Company in the Nuclear Power sector with the orders for core machinery and
components for 700 MW Nuclear Power Projects of NPCIL.
·
The order book also has a strong export orientation
with 20% of the orders comprising of Overseas Projects. This enables the
Company to de-risk by diversifying the customer/geographic portfolio.
The Company is now
targeting to build on the current order book. This will enable the Company to
sustain the growth momentum brought by the current strong order book position.
The areas in which they are pursuing the new orders include:
·
Energy Sector
·
Nuclear Power, Aerospace and Defenc
·
Hydrocarbon (Oil and Gas and Petrochemicals
·
Cement Machinery
Key Events
Project KSHITIJ - Implementation of ERP
Looking to the growing
operations of the Company, the need was felt to implement the Enterprise
Resource Planning (ERP) solution for the heavy engineering division of the
Company. SAP was selected to be the software and the implementation was carried
out by implementation partner Price Waterhouse Coopers (PWC) in close
co-ordination with the in house team. The Company is pleased to inform you that
the Project Kshitij has been successfully implemented and “Go Live” was
achieved on 01.01.2010. The system is under use with a dedicated team working
closely with the users to ensure smooth functioning as well as bring about
constant improvements by way of easing of operations and tightening of controls
wherever required.
The ERP, in the
long run is expected to give many benefits:
1. Fully
integrated online system
2. Bring about
strong system orientation
3. Effective MIS
across the profit centers and projects of the Company
4. Effective
control on costs and budgets
5. Effective
controls on procurement and inventory
6. Various process
automation in the form of Supply Chain Management, Payment automation to reduce
document flows.
Collaboration Agreement with Kawasaki Heavy
Industries, Japan (KHI)
The Company
concluded the Collaboration Agreement with KHI for manufacture, installation
and sale of Flow Dynamics Conveyor Systems (FDC) in India. FDC is a
technologically advanced product suitable for conveying bulk material in the
ecologically sensitive areas. This is also compliant with the Environmental
laws of India. Under this collaboration KHI will provide the Company with the
designs as well as installation and implementation support.
Segment Review
Heavy Engineering
Heavy engineering
division of the company caters primarily to the capital goods segment in
diverse fields such as Sugar Machinery, Boilers and Power plants, Cement
Machinery, Aerospace, Defence, Nuclear Power and EPC. The revenue of the
division was affected by the delays in commencement/clearances of projects for
the first three quarters. However, during the same period the division achieved
a strong order book of over Rs. 24000.000 Millions. This, together with the
revival of the delayed projects, led to a significant recovery in the sales in
Quarter 4 where the company clocked, for the first time, sales turnover of over
Rs. 3000.000 Millions in one quarter.
For the year as a
whole, the sales of Heavy Engineering division increased by 33% compared to the
previous year. This increase was led primarily by the revival of Sugar business
and strong growth witnessed in the boiler and power plant business. Cement
business continued to be lean due to low off-take in the Indian market and
continued delay in commencement of the projects in the overseas markets. The
Mineral Processing (EPC) business also remained lean where the company focused
on successfully commissioning the projects which were already in hand. The
business in the Aerospace, Defence and Nuclear Power segment was also impacted
mainly due to delay in clearances.
Foundry
The business of
foundry is divided mainly into:
·
automotive sector where the division supplies the
heavy grey and SG Iron dies for the automotive industry
·
industrial machinery and equipment
·
components required for the wind turbine
manufacturing
During the year, the
foundry demonstrated a steady sales performance. The foundry suffered on
account of rejections in its complex Ductile Iron casting applications leading
to adverse impact on profitability. The foundry is witnessing strong demand
flow from automotive as well as non automotive customers. The demand is also
witnessed for fully machined castings. Keeping this changing customer trend in
mind, the Company will take appropriate steps to meet this customer
requirement.
Precision Instrument Division
The precision
instrument division of the Company manufactures pressure and temperature gauges
and sector mechanisms required for a range of process industry applications as
well as automotive applications. The division posted a smart recovery compared
to the previous year by clocking sales growth of 60%. This was possible due to
strong demand mainly from the automotive sector as well as efforts and
initiatives taken internally to improve the productivity to effectively use the
available infrastructure and capital and in house design and engineering
efforts.
Project Management and Contract Performance
As mentioned
above, the Company has started executing more projects on a turnkey basis. The
size of the projects is also increasing compared to the past. This, on one hand,
enhances the opportunity to attain scale economies and other benefits, it
exposes the Company to a larger value of retentions and guarantees. In such
scenario the contract management and Performance Risk management assumes a much
greater significance, than any time in the past. This entails three primary
things:
·
Robust estimation process
·
Strong execution process encompassing Engineering,
Procurement, manufacturing and site installation
·
Sound Contract management process
Liquidity and Financial Prudence
Management of
liquidity assumes even more importance when the size of the projects being
handled goes up. This is to ensure adequate supply of funds for execution of
the projects and entails the complete management of net working capital. The
Company is giving significant emphasis on this aspect with specific efforts to
track receivables, inventories and payment to supply base. Further, the Company
firmly believes that financial prudence is the key to survival in difficult
times, as well as sustained growth. Year 2009-10 was among the most challenging
years faced by the Company in the recent past. Despite this the Company has
maintained key financial parameters at a prudent level.
·
Total Loans remained at Rs. 1039.200 Millions as against
Rs. 1249.500 Millions previous year.
·
Gross Debt – Equity Ratio maintained at a healthy
0.46.
The Company has
Rs. 454.000 Millions of free cash on its books, which is invested in safe
instruments such as liquid/liquid plus mutual funds and fixed maturity plans of
the reputed mutual funds. It is pertinent to note that the Company’s credit
rating was maintained throughout the year 2009-10 and outlook now stands
revised to “Positive” from “Stable” which points at a potential upgrade in the
course of time subject to attainment of certain parameters.
Outlook and
Conclusion
Revenue
During the year
2009-10, the Company achieved a revenue growth of 32% over the previous year.
This has been achieved on the backdrop of a significant drop in revenue in the
previous year 2008-09. This has been possible with the growing demand pull from
customers, especially in the sugar, boiler and power project business.
The strong sales
performance in Quarter 4 has given the Company reasons to have favourable
outlook for the next year:
·
Strong Order book as on 30.09.2010, which stands at
Rs. 24520.000 Millions.
·
Strong business outlook in the Aerospace, Defence
and Nuclear power segment. This business lends long term sustainability to the
revenue model of the Company.
·
Continued focus and efforts to build on the current
strong order book position of the Company.
Further, the
Company has strong fundamentals for a sustainable growth:
·
Well diversified yet synergistic business model
·
Strong manufacturing capability
·
In house design engineering capability
·
Project management capability
·
Technology tie-ups in critical areas.
This would augur
well for the Company’s long term sustainable growth.
Contingent
Liabilities not provided for in respect of:
|
Particulars |
30.09.2010 Rs.
In Millions |
|
(i) Counter Guarantees by the Company in respect of guarantees given
by the banks (including guarantee on account of erstwhile Machine Tool
Division of Rs. 0.355 Million). |
2964.415 |
|
(ii) Estimated amount of Contracts remaining to be executed on Capital
Accounts and not provided for (net of advance) |
9.520 |
|
(iii) During the
year, a customer has invoked Bank Guarantee of Rs. 70.000 Millions (shown under
Loans and Advances) on the grounds of alleged non performance of the
Contract. The Company has disputed this claim since the subject Bank
Guarantee was conditional and in the opinion of the Company, the condition
precedent for it to become operative was not fulfilled. The Company has
invoked Arbitration Proceedings as per the provision of the Contract, which
has already commenced, for recovery of this amount together with the
contractual dues of Rs. 74.400 millions owed by the customer, shown under the
head Sundry Debtors in the Financial Statements. Based on the facts of the
case the Company is of the opinion that it has a good case on merits. The matter is
sub-judice and the Company has been legally advised that it has a case worth
pursuing. In view of the forgoing, no provision is considered necessary at
this stage. |
|
|
(iv) (a) Demand
of NA Tax of Rs. 8.661 millions is raised by Tahshildar, Indapur (Previous
year Rs. 8.661 Millions) out of which Rs. 2.000 millions is paid under
protest by the Company. No provision has been made in the accounts as the
Company has not accepted the liability and the matter is sub-judice. (b) The Central
Excise Authorities have raised a demand of Rs. 26.619 Millions (Net of CENVAT
reversal and payment) denying the exemption from the excise duty on
non-conventional energy devices/ systems supplied by the Company. The Company
has disputed the demand and has preferred an appeal which is pending before
‘CESTAT, Mumbai’. On the basis of legal opinion, the Company does not expect
any liability. |
|
|
(c) The Central
Excise Authorities have raised a demand of Rs. 7.998 Millions (Previous year
Rs. 6.136 Millions) on bought out items supplied for Centrifugals, which has already
suffered duty at manufacturers end. The Company has disputed the demand and
has preferred an appeal which is pending before ‘CESTAT, Mumbai’. On the
basis of legal opinion, the Company does not expect any liability. |
|
Fixed Assets:
·
·
Building
·
Plant and Machinery
·
Laboratory Equipments
·
Furniture, Fixtures, Office Equipments and
Electrical Fittings
·
Patens
·
Vehicles
·
Road, Water Works and Drainage
·
Intangible Assets - Software
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 30.06.2011
(Rs.
In Millions)
|
Particulars |
Quarter Ended 30.06.2011 (Unaudited) |
Nine Months 30.06.2011 (Unaudited) |
|
Total Revenue (Sales, Operating and Other Income) (A+B) |
21,26.500 |
69,96.700 |
|
1 (a) Net Sales / Income from Operations |
21,20.900 |
69,46.500 |
|
(b) Other Operating Income |
4.000 |
41.000 |
|
Total Income (A) |
21,24.900 |
69,87.500 |
|
2 Expenditure |
|
|
|
a. (Increase)/Decrease in Stock in trade and work in progress |
(2,55.800) |
(5,37.700) |
|
b. Consumption of Raw Materials and Components |
18,54.500 |
58,92.900 |
|
c. Employees Cost |
1,81.400 |
5,78.500 |
|
d. Depreciation |
42.700 |
1,14.300 |
|
e. Other Expenditure |
2,33.800 |
6,90.700 |
|
Total Expenditure |
20,56.600 |
67,38.700 |
|
3 Profit from Operations before Other Income, Interest and Exceptional
Item (1-2) |
68.300 |
2,48.800 |
|
4 Other Income (B) |
1.600 |
9.200 |
|
5 Profit before Interest and Exceptional Item (3+4) |
69.900 |
2,58.000 |
|
6 Interest |
44.300 |
1,01.900 |
|
7 Profit after Interest but before Exceptional Item (5-6) |
25.600 |
1,56.100 |
|
8 Exceptional Item |
- |
- |
|
9 Profit(+)/Loss(-) from Ordinary Activities before tax (7+8) |
25.600 |
1,56.100 |
|
10 Tax expense (including tax adjustments of earlier year) |
8.300 |
50.200 |
|
11 Net Profit(+)/Loss(-) from Ordinary Activities
after tax (9-10) |
17.300 |
1,05.900 |
|
12 Extraordinary Item |
- |
- |
|
13 Net Profit(+)/Loss(-) for the period (11-12) |
17.300 |
1,05.900 |
|
14 Paid up Equity Share Capital |
76.100 |
76.100 |
|
(Face Value of Rs. 2/- each) |
|
|
|
15 Reserves (Excluding Revaluation Reserve) |
NA |
NA |
|
16 Earnings Per Share (EPS) |
|
|
|
(Rs. 2/- Paid per share) |
|
|
|
Basic Rs. |
0.45 |
2.78 |
|
Diluted Rs. |
0.45 |
2.78 |
|
17 Public shareholding |
|
|
|
Number of shares |
17,131,592 |
17,131,592 |
|
Percentage of Shareholding |
45.00 |
45.00 |
|
18 Promoters and promoter group |
|
|
|
Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
Number of shares |
750,000 |
750,000 |
|
Percentage of shares (As a % of the total shareholding of promoter and
promoter group) |
3.58 |
3.58 |
|
Percentage of shares (As a % of the total share capital of the
company) |
1.97 |
1.97 |
|
b) Non-Encumbered |
|
|
|
Number of shares |
20,188,613 |
20,188,613 |
|
Percentage of shares (As a % of the total shareholding of promoter and
promoter group) |
96.42 |
96.42 |
|
Percentage of shares ( As a % of the total share capital of the
company) |
53.03 |
53.03 |
SEGMENT–WISE REVENUE,
RESULT AND CAPITAL EMPLOYED
(Rs.
In Millions)
|
|
Particulars |
Quarter Ended 30.06.2011 (Unaudited) |
Nine Months 30.06.2011 (Unaudited) |
|
1 |
Segment Revenue |
|
|
|
|
a) Heavy Engineering |
20,10.000 |
66,20.700 |
|
|
b) Foundry and Machine Shop |
93.000 |
3,10.800 |
|
|
c) Others |
26.300 |
72.000 |
|
|
Total |
21,29.300 |
70,03.500 |
|
|
Less : Inter segment Revenue |
4.400 |
16.000 |
|
|
Net Sales / Income from |
|
|
|
|
Operations |
21,24.900 |
69,87.500 |
|
2 |
Segment Results |
|
|
|
|
Profit / (Loss) before |
|
|
|
|
Interest and Tax |
|
|
|
|
a) Heavy Engineering |
95.800 |
3,26.300 |
|
|
b) Foundry |
(7.100) |
(10.800) |
|
|
c) Others |
2.800 |
8.600 |
|
|
Total |
91.500 |
3,24.100 |
|
|
Less : Interest |
44.300 |
1,01.900 |
|
|
Less : Other unallocable |
|
|
|
|
Expenditure net of |
|
|
|
|
unallocable Income |
21.600 |
66.100 |
|
|
Profit/(Loss) Before Tax |
25.600 |
1,56.100 |
|
3 |
Capital Employed |
|
|
|
|
Segment Assets |
|
|
|
|
Less : Liabilities |
|
|
|
|
a) Heavy Engineering |
30,16.400 |
30,16.400 |
|
|
b) Foundry |
3,21.800 |
3,21.800 |
|
|
c) Others |
72.300 |
72.300 |
|
|
d) Unallocated |
1,30.300 |
1,30.300 |
|
|
Total |
35,40.800 |
35,40.800 |
Notes:
1) The above results
have been taken on record, reviewed by Audit committee and approved by the
Board of Directors in it's meeting held on 11.08.2011.
2) The Statutory
Auditors have carried out a limited review of the results for the Quarter ended
30.06.2011.
3) During the
Quarter, 17 investors' complaints were received, which were promptly attended
to and no complaints were pending at the beginning and at the end of the
Quarter.
4) Auditors
Qualification - No provision has been made for the liability, if any, in respect
of the Bank Guarantee invoked and encashed by a customer during the previous
year amounting to Rs. 70.000 millions shown under "Loans and
Advances" and in respect of Rs. 74.400 millions owed by the said customer
appearing under "Sundry Debtors". Company has disputed the customer's
claim for Bank Guranttee invocation and has initiated the arbitration
proceedings. Since the matter is under arbitration, we are unable to opine on
the likelihood of the liability devolving on the Company and the consequent effect
on its Profits and Reserves and Surplus. This qualification is reproduced from
the Audit Report given for the year ended 30.09.2010. The Arbitration
proceedings are in progress in this matter.
5) The company had
issued 80,00,000 fully paid equity shares to the promoters on preferential
basis, post conversion of 8,00,000 convertible warrants and received a total
amount of Rs. 507.200 millions. Out of these Rs. 138.800 millions has been
utilized for capital expenditure, Rs. 278.000 millions for working capital and
the balance amount of Rs. 90.400 millions is invested in Liquid Mutual Funds.
6) Figures have
been regrouped for the previous periods, wherever necessary.
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. 47.84 |
|
|
1 |
Rs. 75.40 |
|
Euro |
1 |
Rs. 65.67 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.