MIRA
INFORM REPORT
|
Report Date : |
18.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
ARIES AGRO LIMITED (CN) |
|
|
|
|
Registered
Office : |
Aries House, Plot No.24, Deonar, Govandi (East), Mumbai – 400 043, |
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|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
27.11.1969 |
|
|
|
|
Com. Reg. No.: |
11-014465 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.130.043
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1969PLC014465 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA19087F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA5035G |
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|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock
Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of micronutrients and other nutritional
products for plants and animals. |
|
|
|
|
No. of Employees
: |
645 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4700000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to be
usually correct 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 Office/ Head Office/ Corporate Office : |
Aries House, Plot No.24, Deonar, Govandi (East), Mumbai – 400 043, |
|
Tel. No.: |
91-22-25564052/ 53 |
|
Fax No.: |
91-22-25564054/ 25502753 |
|
E-Mail : |
General Enquiries: ariesagro@ariesagro.com Investor Relations: investorrelations@ariesagro.com Sales Enquiries: sales@ariesagro.com Legal, HR Administration: mumbai@ariesagro.com R and D and Quality Related Querries: lab@ariesagro.com Accounts Related Querries: accounts@ariesagro.com Production Querries/Complaints and Feedback: customer@ariesagro.com Customer Loyalty Programm: khazaana@ariesagro.com Seed and Plant Protection Division: agrocare@ariesagro.com |
|
Website : |
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|
Factory : |
Located at: v
Mumbai v
v
v
Kolkata v
Sanand v
v
Sharjah, UAE (Subsidiary Company) v
|
|
|
|
|
Branch Network : |
Located at: v
Ahmedabad, v
v
v
Bhubaneshwar, Orissa v
v
v
v
Hissar, Haryana v
v
v
Jaipur, Rajasthan v
Jalandhar, v
v
Kolkata, v
v
v
Nashik, v
Nipani, Karnataka v
v
v
v
Rudrapur, Uttaranchal v
Solapur, v
Sriganganagar, Rajasthan |
DIRECTORS
As on 31.03.2011
|
Name : |
Dr. Jimmy Mirchandani |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/ Age : |
55 Years |
|
Qualification : |
B. Sc. (Vet); LLB |
|
Date of Appointment |
15.01.1976 |
|
|
|
|
Name : |
Dr. Rahul Mirchandani |
|
Designation : |
Executive Director |
|
Date of Birth/ Age : |
35 Years |
|
Qualification : |
B. Com; CFA; MBA; Ph.D. |
|
Date of Appointment |
02.02.1994 |
|
|
|
|
Name : |
Dr. D.S. Jadhav |
|
Designation : |
Director |
|
Date of Appointment |
03.03.1995 |
|
|
|
|
Name : |
Prof. R.S.S. Mani |
|
Designation : |
Director |
|
Date of Appointment |
16.08.2004 |
|
|
|
|
Name : |
Mr. Akshay Mirchandani |
|
Designation : |
Director |
|
Date of Birth/ Age : |
12.05.1984 |
|
Qualification : |
B.Com, MBA |
|
Directorship in other
Companies : |
v Golden Harvest
Middle v
Amarak Chemicals FZC, UAE |
|
Date of Appointment |
05.03.2009 |
|
|
|
|
Name : |
Mr. Chakradhar Bharat Chhaya |
|
Designation : |
Director |
|
Date of Birth/ Age : |
09.11.1943 |
|
Qualification : |
B.Com, ICWA, CAIIB |
|
Directorship in
other Companies : |
v Credila
Financial Services Private Limited v Texmo Pipes and
Products Limited v Calyx Chemicals
and Pharmaceuticals Limited v
Yalamanchili Software Exports Limited |
|
Date of Appointment |
29.10.2009 |
KEY EXECUTIVES
|
Name : |
Mr. S. Ramamurthy |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Qaiser P. Ansari |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6,857,926 |
52.74 |
|
|
6,857,926 |
52.74 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
6,857,926 |
52.74 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,185,560 |
9.12 |
|
|
347,828 |
2.67 |
|
|
1,533,388 |
11.79 |
|
|
|
|
|
|
1,127,714 |
8.67 |
|
|
|
|
|
|
2,416,289 |
18.58 |
|
|
954,236 |
7.34 |
|
|
114,786 |
0.88 |
|
|
112,038 |
0.86 |
|
|
2,748 |
0.02 |
|
|
4,613,025 |
35.47 |
|
Total Public shareholding (B) |
6,146,413 |
47.26 |
|
Total (A)+(B) |
13,004,339 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
13,004,339 |
- |
%20-%20176609%2018-Apr-2012_files/image002.gif){kind=small}
(1) Indian%20-%20176609%2018-Apr-2012_files/image003.gif){kind=small}
Individuals / Hindu Undivided Family%20-%20176609%2018-Apr-2012_files/image004.gif){kind=small}
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of micronutrients and other nutritional
products for plants and animals. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
2010-2011 |
|
Licensed Capacity |
Not Applicable |
|
Installed Capacity |
84,600 Metric
Tonnes |
|
Actual Production |
39,577 Metric
Tonnes |
GENERAL INFORMATION
|
No. of Employees : |
645 (Approximately) |
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Bankers : |
v
ICICI
Bank Limited, SEG Department, B Wing, 3rd Floor, Mafatlal Chambers,
N.M. Joshi Marg, Lower Parel (East), Mumbai – 400 013, Maharashtra, India v
HDFC
Bank Limited, Emerging Corporate Group, Trade World, ‘A’ Wing, 2nd
Floor, Kamala Mill Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400
013, Maharashtra, India v
Canara
Bank, Chembur Main Branch, Opposite Chembur Railway Station, 70 A, MDS Marg,
Chembur, Mumbai - 400 071, v
YES
Bank Limited, Nehru Centre, 12th Floor, Discovery of v
Axis Bank Limited, Credit
Management Centre, Axis House, Bombay Dyeing Mills Compound, P.B. Marg,
Worli, Mumbai - 400 025, Maharashtra, India |
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Facilities : |
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|
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Banking
Relations : |
-- |
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|
|
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Auditors : |
|
|
Name : |
Kirti D. Shah and Associates Chartered Accountants |
|
Address : |
501, Nestor
Court, Behind Vinayak Society, Old Police Lane, Off S.V. Road, Vile Parle (West),
Mumbai - 400 056, Maharashtra, India |
|
|
|
|
Internal
Auditors: |
|
|
Name : |
Kirit Manek and Company Chartered Accountants |
|
Address : |
14B, Nootan Nagar, |
|
|
|
|
Subsidiaries : |
v Aries Agro Care
Private Limited (Date of Incorporation 5th January 2007) v Aries Agro
Equipments Private Limited (Date of Incorporation 12th January
2007) v Aries Agro
Produce Private Limited (Date of Incorporation 20th June 2008) v Golden Harvest
Middle v
Amarak Chemicals FZC (Step down Subsidiary - Date
of Incorporation 9th September, 2007) |
|
|
|
|
Enterprises over which the key Management Persons
has Significant Influence or Control : |
v
Aries Marketing Limited v
Blossoms International Limited v
Sreeni Agro Chemicals Private Limited v
Aries East West Nutrients Private Limited |
|
|
|
|
Enterprises in which the key Management Persons
have total control : |
v Mirabelle
International |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13004339 |
Equity Shares |
Rs.10/- each |
Rs.130.043
Millions |
|
|
|
|
|
Of the above Shares:
(i) 6,600,700
Equity Shares of Rs.10/- each were allotted as fully paid-up Bonus Shares by
capitalisation of Rs.49.000 millions from Revaluation Reserve, Rs.9.100
millions from Securities Premium Account and Rs.7.900 millions from Profit and
Loss Account.
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 |
130.043 |
130.043 |
130.043 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1045.081 |
934.395 |
848.537 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1175.124 |
1064.438 |
978.580 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
947.290 |
739.739 |
650.139 |
|
|
2] Unsecured Loans |
84.729 |
90.629 |
54.751 |
|
|
TOTAL BORROWING |
1032.019 |
830.368 |
704.890 |
|
|
DEFERRED TAX LIABILITIES |
20.788 |
14.884 |
4.575 |
|
|
|
|
|
|
|
|
TOTAL |
2227.931 |
1909.690 |
1688.045 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
319.782 |
323.057 |
290.693 |
|
|
Capital work-in-progress |
170.684 |
157.277 |
192.131 |
|
|
|
|
|
|
|
|
INVESTMENT |
180.609 |
146.405 |
65.748 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
841.926
|
468.677
|
503.569 |
|
|
Sundry Debtors |
488.707
|
650.221
|
493.516 |
|
|
Cash & Bank Balances |
402.368
|
78.972
|
3.715 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
609.131
|
466.083
|
435.827 |
|
Total
Current Assets |
2342.132
|
1663.953 |
1436.627 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
436.351
|
272.450 |
243.833 |
|
|
Other Current Liabilities |
270.850
|
33.876
|
32.169 |
|
|
Provisions |
78.075
|
74.676
|
21.152 |
|
Total
Current Liabilities |
785.276
|
381.002 |
297.154 |
|
|
Net Current Assets |
1556.856
|
1282.951
|
1139.473 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2227.931 |
1909.690 |
1688.045 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1559.856 |
1381.665 |
1104.442 |
|
|
|
Other Income |
37.760 |
39.494 |
16.338 |
|
|
|
TOTAL (A) |
1597.616 |
1421.159 |
1120.780 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of Materials |
725.247 |
611.617 |
548.800 |
|
|
|
Manufacturing/ Direct Expenses |
79.265 |
60.501 |
75.696 |
|
|
|
Payment to and for Employees |
147.050 |
119.109 |
94.208 |
|
|
|
Administration and Other Expenses |
426.623 |
339.010 |
342.928 |
|
|
|
Increase/Decrease in stock |
(146.802) |
(1.236) |
(59.059) |
|
|
|
TOTAL (B) |
1231.383 |
1129.001 |
1002.573 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
366.233 |
292.158 |
118.207 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
124.595 |
86.762 |
58.131 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
241.638 |
205.396 |
60.076 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
18.055 |
15.984 |
9.703 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
223.583 |
189.412 |
50.373 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
76.403 |
63.809 |
19.296 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
147.180 |
125.603 |
31.077 |
|
|
|
|
|
|
|
|
|
Less |
PRIOR PERIOD ITEMS |
0.000 |
13.212 |
0.000 |
|
|
|
SHORT PROVISION FOR
TAX IN EARLIER YEARS |
3.362 |
0.982 |
18.281 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
329.273 |
255.610 |
242.814 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
20.000 |
15.000 |
0.000 |
|
|
|
Proposed Dividend |
13.004 |
19.506 |
0.000 |
|
|
|
Interim Dividend Paid |
13.004 |
0.000 |
0.000 |
|
|
|
Dividend Distribution Tax |
4.320 |
3.240 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
422.763 |
329.273 |
255.610 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of export sales |
77.280 |
41.496 |
2.742 |
|
|
TOTAL EARNINGS |
77.280 |
41.496 |
2.742 |
|
|
|
|
|
|
|
|
|
|
CIF VALUE OF
IMPORTS |
420.942 |
218.190 |
427.418 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
11.06 |
8.57 |
2.39 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
280.340 |
620.320 |
531.560 |
|
Total Expenditure |
201.550 |
470.990 |
411.770 |
|
PBIDT (Excl OI) |
78.790 |
149.330 |
119.790 |
|
Other Income |
3.160 |
0.350 |
0.750 |
|
Operating Profit |
81.950 |
149.680 |
120.540 |
|
Interest |
44.560 |
44.090 |
44.890 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
37.400 |
105.590 |
75.650 |
|
Depreciation |
4.510 |
6.640 |
3.520 |
|
Profit Before Tax |
32.890 |
98.950 |
72.130 |
|
Tax |
11.100 |
33.010 |
23.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
21.780 |
65.940 |
48.430 |
|
Extraordinary Items |
0.000 |
0.000 |
(0.050) |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
21.780 |
65.940 |
48.380 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
9.21
|
8.84
|
2.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.33
|
13.71
|
4.56 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.40
|
9.53
|
2.92 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.18
|
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.55
|
1.14
|
1.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.98
|
4.37
|
4.83 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of
Establishment |
Yes |
|
2) Locality of
the firm |
Yes |
|
3) Constitutions
of the firm |
Yes |
|
4) Premises
details |
No |
|
5) Type of
Business |
Yes |
|
6) Line of
Business |
Yes |
|
7) Promoter’s
background |
Yes |
|
8) No. of
employees |
Yes |
|
9) Name of person
contacted |
No |
|
10) Designation
of contact person |
No |
|
11) Turnover of
firm for last three years |
Yes |
|
12) Profitability
for last three years |
Yes |
|
13) Reasons for
variation <> 20% |
-- |
|
14) Estimation
for coming financial year |
No |
|
15) Capital in the
business |
Yes |
|
16) Details of
sister concerns |
Yes |
|
17) Major
suppliers |
No |
|
18) Major
customers |
No |
|
19) Payments
terms |
No |
|
20) Export /
Import details (if applicable) |
No |
|
21) Market
information |
-- |
|
22) Litigations that
the firm / promoter involved in |
-- |
|
23) Banking
Details |
Yes |
|
24) Banking
facility details |
Yes |
|
25) Conduct of
the banking account |
-- |
|
26) Buyer visit
details |
-- |
|
27) Financials,
if provided |
Yes |
|
28) Incorporation
details, if applicable |
Yes |
|
29) Last accounts
filed at ROC |
Yes |
|
30) Major
Shareholders, if available |
No |
OPERATIONS
During the year,
the earnings before Interest, Depreciation and Tax was Rs.366.233 millions compared
to Rs.292.157 millions in the previous year. As at March’2011, the Gross Fixed
Asset was Rs.420.793 millions compared to Rs.406.074 millions in the previous
year. The Turn Over for the year was Rs.1582.575 millions as against
Rs.1397.461 millions in the previous year reflecting a growth of 13.25 %.
Profit after tax for the year was Rs.147.180 millions compared to Rs.125.603
millions in the previous year.
The Company is a
major manufacturer and supplier of Chelated micronutrients, value added secondary
nutrient fertilizers and also water soluble NPK fertilizers. In addition, they
also have a growing range of farm sprayers and plant protection chemicals,
including pesticides, insecticides, fungicides and herbicides in their product
portfolio. In total, Aries has 85 brands.
FUTURE PROSPECTS:
The Company is in
the process of launching 10 new products in phases during 2011-12. The product
selected includes Organic Soil Conditioners, Specialty Micronutrients and
Secondary Nutrients, Gibberellic Acid, Plant Protection Chemicals and
specialized products for niche products like apple and other stone fruits. The
Company is also entering new markets in
Their overseas
manufacturing operations including Amarak Chemicals FZC manufacturing Sulphur
Bentonite and Golden Harvest Middle East FZC manufacturing Chelates and Soluble
Boron, are now in full production. They have secured orders for Sulphur
Bentonite from 4 key fertilizer companies in
The demand for
their products in the South Asian region and the
SUBSIDIARIES
At the beginning
of the Financial Year 2010-11 the Company had four subsidiaries, Aries Agro
Care Private Limited, Aries Agro Equipments Private Limited, Aries Agro Produce
Private Limited and Golden Harvest Middle East FZC.
During the
Financial Year the Company’s Overseas Subsidiary viz Golden Harvest Middle East
FZC has on 30.12.2010 acquired 75% Shares of Amarak Chemicals FZC based in
Fujairah Free Zone, UAE by virtue of which Amarak Chemicals FZC has become a
Step Down Subsidiary of Subject w.e.f. 30.12.2010.
The operations of
Aries Agro Care Private Limited commenced in the Financial Year 2008-09 and
during the Financial Year 2010-11 the Company has ended with a total revenue of
Rs.4.671 millions and incurred a loss of Rs.0.847 million.
The business
operations of Aries Agro Equipments Private Limited commenced in the year
2009-10 in agricultural sprayers. During the Financial Year 2010-11 the Company
has a Turnover of Rs.35.813 millions with profit after tax of Rs.4.180
millions.
The above two
Companies are Wholly Owned Subsidiaries of the Company.
No business
activity took place in other Subsidiary namely Aries Agro Produce Private
Limited.
As regards the
overseas subsidiary Golden Harvest Middle East FZC with an installed capacity
of 10,800 MT p.a., in their third year of operation, has generated a total sale
of AED 2,80,77,550/- with a profit of AED 44,87,858/-.
Amarak Chemicals
FZC, became Subsidiary of Golden Harvest Middle East FZC w.e.f. 30.12.2010
consequently it became a step down Subsidiary of Subject. Amarak Chemicals FZC
with an installed capacity of 60,000 MT p.a., has generated a total sale of AED
63,38,456/- with a profit of AED 5,68,571/- for the year 2010-11.
All the above
subsidiary Companies are non-material, non-listed Companies as defined under
Clause 49 of the Listing Agreement with the Stock Exchanges.
MANAGEMENT DISCUSSION AND ANALYSIS
MANUFACTURING BASE
Aries has been
effectively scaling up utilization of its manufacturing base of 84,600 MT p.a.
in
The Company is
also looking at shifting its existing Ahmedabad manufacturing unit to a larger
premise within the next 12 months.
GLOBAL SOURCING
They continue to
source critical raw materials and world class plant nutrient products from
suppliers located in
INDUSTRY TRENDS
2010-11 was a year
of contrast in the Agri business sector with delayed and excessive rains not
only in the Kharif (summer) season but also in the Rabi (winter) season with
added effect of floods or deficient rains in certain pockets. The seasons were
extremely erratic with delayed starts and they extended way beyond normal
periods. This caused pressure on inventories. The political instability in
The highly
uncertain rainfall patterns, if continues, will alter the quarterly revenue
trends to some extent depending on the onset of the monsoons.
However, the Company
has been working steadily in reducing its rainfall dependence inorder to
mitigate the environmental risks. Despite the uncertainty in environmental
factors, the Company achieved revenue growth of 13% over the previous financial
year.
The sales revenue
grew in all states with the exception of Uttarpradesh and
FARMER FUNDING:
The extreme
circumstances prevailing across the country due to large increase in interest
rates, the collapse of the micro finance industry, the prevailing inflationary
pressures, the rising costs of practically all agricultural inputs, etc, has
resulted in severely constricting the cash flows of Indian farmers. The
management is in discussion with a few banks to extend loans / lines of credit
to the Company’s farmer customers, which inturn will enable such customers to
increase their purchase of the Company’s products, such as micro fertilizers,
insecticides, sprayers, etc. The Company will manage the sanction,
disbursements and recovery of such loans given by the Banks to such farmer
customers. This will result in not only increasing the sales volumes of the
Company but also will ensure better recovery of sales receivables. In addition
the Company will receive management fees from the bankers which, in itself, has
a potential to grow into an independent revenue stream.
GROWTH DRIVERS
The Company’s
future growth shall be driven by international sales, institutional business in
COST MANAGEMENT
The rising costs
of raw materials, processing costs, fuel and interest rates are a major source
of concern. All these have impacted the Company during the entire financial
year. Inflationary pressures on all counts have compelled the Company to raise
quarterly prices for its entire range of products and they have already
increased prices significantly over the previous year. Though a portion of the
cost increase has been passed on to the market, the Company is still absorbing
some of the cost escalations in the interest of sustaining demand for some key
brands. It is expected that raw materials, fuel prices and interest costs will
continue to rise during the entire year 2011-12.
To offset part of
the cost escalations which is unmet with the price increase, the Company is
resorting to stringent monitoring of all\ costs across all areas of production
and administration at all cost centers.
MAN POWER
The Company’s
expansion into new markets has necessitated the increase in manpower from 612
to 645 persons during the year. They believe an additional number of 125
persons will be added to the Company’s work force during 2011-12. Majority of
this increase will come in the areas of brand promotions and extension\
services as well as at the overseas manufacturing centers.
GLOBAL
DISTRIBUTION:
The company has
commenced international sales in 3 countries with supplies from Indian and UAE
factories. Distributors have been appointed for these overseas markets. They
believe, 2011-12 will witness a marked increase in their export and global
sales which will rapidly grow to form 33% of the total group revenue of the Company
by Financial Year 2012.
OUTLOOK:
The 2011 monsoons
commenced about a week early, however, there was a significant break and a dry
spell during almost all of June 2011. This has once again delayed the Kharif season.
However, July rains have been on track and all major markets have received
rainfall. Should the trend continue, prospects for the Kharif season and
consequent harvest looks positive.
The Company will
be adding additional 10 products during the year 2011-12 including 1 Soil
Conditioner, 4 Specialty Plant Nutrients, 2 Plant Protection Chemicals, 1 Plant
Hormone and 2 products specifically for Apple and Stone Fruits. This will add
to the revenue growth potential. In addition, the sales and extension activities
will be scaled up significantly with specific targets assigned to all group
leaders with regard to farmers meetings, demonstrations, field trials, dealers’
training, staff training and other related demand creation activities.
FINANCIAL PERFORMANCE:
The Company’s
Turnover for the financial year ended March 31, 2011 increased to Rs.1582.575
millions from Rs.1397.461 millions in the previous year, registering a growth
of 13.25%.
Total expenses for
the year were Rs.1520.834 millions as against Rs.1232.983 millions in the
previous year.
Profit Before Tax
increased to Rs.223.583 millions during the year as against Rs.189.412 millions
in the previous year. The increase in Profit Before Tax translates to 18 %.
Tax provision for
the year was Rs.76.403 millions as against Rs.63.808 millions in the previous
year which translates to 4.82 % on FY 10-11 Sales.
Profit After Tax
for the year was Rs.147.180 millions as against Rs.125.603 millions in the
previous year which is 9.30 % of FY 10-11 Sales.
CONTINGENT
LIABILITY NOT PROVIDED FOR IN THE ACCOUNTS: (As on 31.03.2011)
a) Letters of
credit / guarantees given to Banks Rs.571.501 millions
b) Bills
discounting with Banks Rs.221.405 millions
c) Claims against
company not acknowledged as debts Rs.8.650 millions which includes tax dues
disputed as Rs.0.512 million towards sales Tax, Rs.5.456 millions towards
Income Tax and includes Rs.2.573 millions pertaining to pending suits regarding
quality issue.
d) The Commissioners of Central Excise, Mumbai and
e) Estimated amount of Contracts remaining to be executed on capital account
and not provided for (Net of Advances) is Rs.14.000 millions.
UN-AUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2011
(Rs.
in millions – Except EPS)
|
PARTICULARS |
Standalone
Financial Results |
||
|
Quarter ended on 31.12.2011 |
Previous Quarter Ended on
30.09.2011 |
Year to Date Figures for Current Period ended 31.12.2011 |
|
|
(UNAUDITED) |
(UNAUDITED) |
(UNAUDITED) |
|
|
1 a) Net Sales /
Income from Operations |
531.564 |
620.316 |
1432.224 |
|
b) Other Operating
Income |
- |
- |
- |
|
2 Expenditure |
|
|
|
|
a) (Increase) /
Decrease in Stock-in-Trade & Work in Progress |
(28.160) |
(146.502) |
(174.167) |
|
b) Consumption
of Materials / Rebranded Goods |
242.549 |
366.390 |
750.069 |
|
c) Employees Cost |
38.504 |
32.318 |
105.754 |
|
d) Depreciation |
3.516 |
6.636 |
14.665 |
|
e) Other
Expenditure |
158.882 |
218.785 |
400.874 |
|
f) TOTAL
EXPENDITURE |
415.291 |
477.626 |
1097.195 |
|
3 Profit / (Loss)
from Operations before Other Income, Interest and Exceptional Items (1 - 2) |
116.274 |
142.690 |
335.029 |
|
4 Other Income |
0.751 |
0.350 |
1.006 |
|
5 Profit /
(Loss) before Interest and Exceptional Items (3 + 4) |
117.025 |
143.040 |
336.035 |
|
6 Interest &
Financial Charges |
44.886 |
44.090 |
131.808 |
|
7 Profit /
(Loss) after Interest but before exceptional items (5 - 6) |
72.138 |
98.950 |
204.227 |
|
8 Exceptional
Items |
- |
- |
- |
|
9 Profit (+) / Loss
(-) from Ordinary Activities Before Tax (7 - 8) |
72.138 |
98.950 |
204.227 |
|
10 Provision for
Tax |
|
|
|
|
(a) Current Tax |
22.300 |
33.000 |
64.800 |
|
(b) Deferred Tax
|
1.284 |
(0.111) |
2.649 |
|
(c) Wealth Tax |
0.125 |
0.125 |
0.375 |
|
Total Tax |
23.709 |
33.014 |
67.824 |
|
11 Net Profit
(+) / Loss (-) from Ordinary Activities After Tax - PAT (9 - 10) |
48.429 |
65.936 |
136.403 |
|
12 Minority
Interest |
- |
- |
- |
|
13 Profit After Tax,
After adjustment of Minority Interest - PAT (11 - 12) |
48.429 |
65.936 |
136.403 |
|
14 Extra
Ordinary Items (Net of Tax Expense) |
0.045 |
- |
0.045 |
|
15 Net Profit
(+) / Loss (-) for the Period (13 - 14) |
48.384 |
65.936 |
136.358 |
|
16 Paid-Up
Equity Share Capital (Equity Share of Rs.10/- Each) |
130.043 |
130.043 |
130.043 |
|
17 Free Reserves
(excluding Revaluation Reserve) |
1190.088 |
908.922 |
1190.088 |
|
18 Earnings per
Share (EPS) |
|
|
|
|
a) Basic and Diluted
EPS before Extraordinary items for the period, for the year to date and for
the previous year ( not to be annualised) |
3.72 |
5.07 |
10.49 |
|
b) Basic and
Diluted EPS after Extraordinary items for the period, for the year to date
& for the previous year ( not to be annualised) |
3.72 |
5.07 |
10.49 |
|
19 Public
Shareholding |
|
|
|
|
a) Number of
Shares |
6,146,413 |
6,146,413 |
6,146,413 |
|
b) Percentage
(%) of Shareholding |
47.26 |
47.26 |
47.26 |
|
20 Promoters and
Promoter Group Shareholding as on 31-12-2011 |
|
|
|
|
a) Pledged /
Encumbered |
|
|
|
|
- No of Shares |
- |
- |
- |
|
- Percentage of
Shares (as a % of total shareholding of Promoter and Promoter Group) |
- |
- |
- |
|
- Percentage of Shares
(as a % of total share capital of the Company) |
- |
- |
- |
|
b) Non -
Encumbered |
|
|
|
|
- No of Shares |
6,857,926 |
6,857,926 |
6,857,926 |
|
- Percentage of
Shares (as a % of total shareholding of Promoter and Promoter Group) |
100 |
100 |
100 |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
52.74 |
52.74 |
52.74 |
Notes:
1. As the
Company's business activity falls within a single primary business segment, the
disclosure requirements of Accounting Standard (AS-17) " Segment Reporting
", specified in the Company's (Accounting Standard) Rules, 2006 are not
applicable.
2. The above
Financial Results were reviewed and recommended by the Audit Committee and there
upon approved by the Board of Directors at their respective meetings held on 14th
February, 2012
3. The Statutory
Auditors have carried out a Limited Review of the Results for the Quarter Ended
31st December, 2011
4. The Standalone
/ Consolidated results are for the quarter ended 31st December,
2011.
5. The
Consolidated Un-Audited Financial Statements have been prepared in accordance
with Accounting Standard 21" Consolidated Financial Statements" as notified
by Companies (Accounting Standard) Rules, 2006.
6. In the process
of upgradation of Accounting Software, due to Synchronisation errors
Depreciation to the tune of Rs.1.342 millions was overstated in the Previous
two Quarters, which stands rectified in the Current Quarter.
7. The significant
increase appearing in the Consolidated Financial Statements in the Quarter and
Year-To-
Date is on account
of Performance of their Sulphur Bentonite Manufacturing Facility at UAE.
8. Status of
Investor Complaints (Nos.): -
Pending at the
beginning of the Quarter - NIL / Received during the Quarter - NIL/- Disposed
off during the Quarter - NIL/- Balance at the end of the Quarter - NIL.
9. Previous
Period's / Year's figures have been re-grouped / re-arranged whereever
necessary to correspond with the Current Period's figures.
10. The above
results will be made available at the Company's Website at www.ariesagro.com on
or after 15th February, 2012.
FIXED ASSETS:
v Land
v
v Residential Flat
v Plant and Machinery
v Electrical Installations
v Laboratory Equipments
v Office Equipments
v Furniture and Fixtures
v Air Conditioners
v Computer
v Vehicles
v Commercial Vehicles
WEBSITE DETAILS:
HISTORY
Way back in 1969, a couple of very dynamic and ambitious people,
Dr. T. B. Mirchandani and Mrs. Bala Mirchandani, decided to prove to oneself
and the world that what they could achieve as employees of large multinational
companies is much less than what they could do for themselves. Dr. TBM was
handling the Animal Health division of Boots Pharmaceuticals Limited, while
Mrs. BM was handling the marketing department of Vick Products Inc. The company
that had launched the now famous Vicks Vaporub in
Both, the technical expertise and the marketing savvy
existed with these two daring individuals and their determination culminated in
the birth of Aries. Aries was started as a small company with a tiny office and
a small factory at Andheri,
The small size that most onlookers viewed as a handicap, was turned into Aries'
biggest strength by this industrious couple. The size permitted hands-on
supervision of almost all aspects of the running of an infantile company. This
resulted in closer interaction with all the people involved and generated a
very strong sense of loyalty and belonging among the employees.
Aries started life with a small range of Mineral Feed additives for animals and birds.
There was considerable encouragement from associates in the industry and also from the industry press. The effort of the Mirchandanis was lauded and initial trials resulted in an almost immediate acceptance of Aries' products.
Having got a foothold in the marketplace, Aries grew from strength to strength, launching one or more products every year. Soon Aries was considered a brand leader in the field of Mineral nutrition and boasted a range of products including mineral premixes, milk boosters, protein concentrates, vitamin premixes, anti-coccidial and anti-bacterial feed additives.
Around the mid-seventies, Aries' management perceived a plateauing of the feed additives market and rightly decided to look into avenues for diversification.
Taking into consideration that, in India, the animal and agricultural farmer are one and the same individual, it made good marketing sense to look at the agricultural products arena for further growth.
Having in-house expertise in Mineral Nutrition, Aries decided to concentrate on Mineral Nutrition in Agriculture. Surveys indicated that while Macro fertilization was practiced widely, Microfertilizers were an almost unknown commodity with the farmers. The little microfertilization being done, was with inorganic compounds that were well known to be low in efficiency.
Aries researched into world literature and data for compounds that could deliver mineral nutrients to plants more efficiently and zeroed in "Metal Chelates".
It then became necessary to adapt processes and manufacturing data to locally available ingredients and expertise. R and D solved the problem soon and Aries branched out into Agrochemicals with the introduction of Chelated Micronutrients.
A lot of hard work and efforts saw Aries Chelated Micronutrients become brand leaders in the area of Micronutrients, all over the country.
Simultaneous Research by Aries' scientists, based on feedback from the field, resulted in the introduction of Crop specific formulas of Chelates for individual crops. Based on market feedback, Aries developed and launched individual Metal Chelates like Zinc Chelates, Iron Chelates and so on.
In-house R and D also saw the introduction of Bactericides for Agriculture -- the first of its kind to be licensed for Agricultural use by the Govt. of India. Alongside came the introduction of Plant hormones.
During all this while, the prime consideration at Aries was always "Quality" - not only in the R and D labs and in finely controlled trials, but most importantly at the consumer level.
The consistent stress on quality has paid off in that Aries' products enjoy a very high level of customer confidence all over the country.
Today, Aries has manufacturing facilities and offices at 12 locations all over the country and employee strength exceeding 450 people.
Aries is accepted for the high quality of its products, both Agricultural and Veterinary, and enjoys a tremendous amount of Goodwill with dealers and consumers.
Aries is accepted as Brand leaders in the areas it operates in -- Nutritional products for Plant and Animal Health.
Aries has a very wide Distribution network country-wide - comparable to some of the best companies anywhere in the world. The total number of registered dealers runs into the thousands.
On 30th Dec. 1994, Aries was formally converted into a Public Company.
In 2001, Aries expanded its product line to include Secondary
Nutrients -
In 2002, Aries continued expanding its plant nutrition product line to include value-added, water soluble complexes of N, P and K.
Aries today has tied up several exclusive Marketing
arrangements with manufacturers of quality plant nutritional products all over
the world. All products sourced from abroad are formulated with specific inputs
from Aries' market intelligence and technical support from their technical
support teams. The R and D efforts of their International partners have
therefore taken into account the unique agro-climatic requirements of
Since the turn of the millennium, Aries has positioned
itself as
COMPANY OVERVIEW:
Their Company was founded by Dr. T. B. Mirchandani and Mrs. Bala Mirchandani in 1969. They are into the business of manufacturing of micronutrients and other nutritional products for plants and animals. They started their activity by manufacturing a small range of mineral feed additives for animals and birds and then diversified into mineral additives for the agriculture use. Their products were immediately accepted by the consumers and slowly it became the brand leader in the field of mineral nutrition with a range of products including mineral premixes, milk boosters, protein concentrates, vitamin premixes, anti-coccidian and anti-bacterial feed additives.
In 1975, they diversified into nutrients for plant. They had
in-house expertise in the area of mineral nutrition and thereby decided to
concentrate on the same. They conducted research on compounds that could
deliver mineral nutrients to plants more efficiently. The research zeroed in on
"Metal Chelates". The product had to be manufactured in accordance
with the locally available ingredients and expertise which posed a challenge for
the Company. Through in-house R and D efforts, Their Company branched out into
Agrochemicals in 1975 with the introduction of Chelated Micronutrients. They
pioneered the concept of Chelates in
They also conducted in-house R and D to develop bactericides for agriculture. They were amongst the first few to receive license for use of bactericides for agricultural use by the Govt. of India. This was then followed by the introduction of plant hormones. In 2001, Aries ex panded its product line to include secondary nutrients - sulphur, magnesium and calcium. In the subsequent years, they continued expanding Their plant nutrition product line to include value-added, water-soluble complexes of nitrogen (N), phosphorous (P) and potassium (K).
MILESTONES
v First recipient of the coveted ISI mark for Mineral Feed Supplements -- an honor not yet accorded to many major players in the Industry.
v
The company selected by the International Labor
Organization,
v First company to receive manufacturing permission for Agricultural Chelates.
v First company to receive manufacturing permission for Agricultural Bactericides.
v First company to indigenously manufacture Calcium Chelate.
v Recipient of Trans world Gold Medal.
v Recipient of National Unity Award.
v Consistently represented on the Animal Feeds Committee of the Bureau of Indian Standards.
v Responsible for the establishment of the "Feed Additive Manufacturers Association of India".
v Responsible for the establishment of the "Indian Micronutrient Manufacturers Association".
v Dr. T.B. Mirchandani was nominated for the International Award for Distinguished Leadership by the American Biographical Institute.
v
Aries is the first Agribusiness Company in
INFRASTRUCTURE
MARKETING NETWORK
They have very wide distribution network across the country. They operate along
a distribution channel comprising of about 44,000 distributors and a direct
retail touch point of more than 4000 dealers. Their reach extends to most of the
major fertilizer consuming districts of the country. Their retail outlets are
spread over 20 states in
The marketing personnel directly visit villages to educate
the farmers on the concept of chelation and the various benefits of
micronutrients. This has helped them to establish a close connectivity with the
farmers and has helped to increase the customer base. They have 25 branches
spread across all over
DISTRIBUTION REACH
Registered Distributors and Dealers About 49,000
Number of Dealers counters serviced Over 70,000
Number of villages covered (assuming 2 to 3 villages/dealer) 1,60,000
DEALER LOYALTY
PROGRAMME
They have in the recent past started a Dealer Loyalty programme called Khazaana. This programme was aimed at providing the company's dealers with a range of rewards and privileges. Khazaana is first one of its kinds in the agrochemical industry. They service around 1,22,567 villages and have active participation from the farmers, distributors and dealers in the Khazaana programme. In this programme, each and every sale and payment of the dealer is tracked. These dealers are then given points on the basis of their collection instead of sales. The distributors are not given discounts but are entitled to redeem points in the future.
MANUFACTURING
Their plants are presently located at
BOARD OF DIRECTORS:
Dr. Jimmy Mirchandani
Chairman and Managing
Director
Date of Appointment:
15.01.1976
Dr Jimmy Mirchandani is a Bachelor of Veterinary Science and
Animal Husbandry from
Mr. Rahul Mirchandani
Executive Director
Date of Appointment:
02.02.1994
Dr. Rahul Mirchandani is a B.Com from R A Poddar College of
Commerce and Economics,
Dr. D.S. Jadhav
Independent Director
Date of Appointment:
03.03.1995
Dr D S Jadhav is a retired Associate Dean of the
Prof. R. S. S. Mani
Independent Director
Date of Appointment:
16.08.2004
Prof. R.S.S. Mani is a HRD and Management Strategy expert,
associated in value added interventions to many reputed Companies in the
domains of HRM,
Mr. Akshay
Mirchandani
Director
Date of Appointment: 05.03.2009
Mr. Akshay Mirchandani is a B.Com from Swami Vivekananda
College of Commerce, Arts and Science,
Mr. Chakradhar Bharat
Chhaya
Independent Director
Date of Appointment:
29.10.2009
Mr. Chakradhar Bharat Chhaya, aged about 65 years has more
than 45 years of experience in the field of banking and finance. He completed
his Bachelor of Commerce from
The various designations held by him during his career were
Zonal Head and Convener of State Level Bankers' Committee of Rajasthan and
Nagar Rajbhasha Samiti of Jaipur (Banks), Deputy General Manager - Corporate
Banking, Assistant General Manager – Central Inspection Division, Regional
Manager -
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.51.63 |
|
|
1 |
Rs.81.94 |
|
Euro |
1 |
Rs.67.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.