MIRA
INFORM REPORT
|
Report Date : |
10.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
UNITED BREWERIES LIMITED |
|
|
|
|
Registered
Office : |
UB Tower, UB City, 24, Vittal |
|
|
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|
Country : |
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|
Financials (as
on) : |
31.03.2011 |
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|
|
Date of
Incorporation : |
13.05.1999 |
|
|
|
|
Com. Reg. No.: |
08-25195 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.2723.545
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L36999KA1999PLC025195 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRU00927D |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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|
|
Line of Business
: |
Manufacturer of Beer. |
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|
|
|
No. of Employees
: |
1661 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (57) |
|
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 51800000 |
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|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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|
Comments : |
Subject is a U B Group
Company. It is a well established and a reputed company having fine track. Financial
position of the company appears to be sound. Directors are reported to be
experienced and respectable businessman. 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
A (Long Term) |
|
Rating Explanation |
Having adequate degree of safety regarding timely servicing of
financial obligation, it carry low credit risk. |
|
Date |
September 2011 |
|
Rating Agency Name |
ICRA |
|
Rating |
A1 (Short Term) |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of
financial obligation, it carry lowest credit risk. |
|
Date |
September 2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
UB Tower, UB City, 24, Vittal |
|
Tel. No.: |
91-80-22274884/5/6/22227286/7/8/22279131/22275809/22272806/22272807 |
|
Fax No.: |
91-80-22219131/22272806/22229488/22211964 |
|
E-Mail : |
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|
Website : |
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|
|
The UB Group : |
Level 12 – 16, UB Tower, UB City 24, Vittal Mallya Road, Bangalore-560001, Karnataka, India. |
|
Tel. No.: |
91-80-39856000 |
|
Fax No.: |
91-80-39856034 |
|
|
|
|
Corporate Office
: |
Level 3-5, UB Tower, UB City 24, Vittal Mallya Road, Bangalore-560001,
Karnataka, India |
|
|
|
|
Factory : |
v
1/1, Vittal v
Nacharam Industrial Area, Nacharam,
Hyderabad-501507, v
P. B. No. 2, Varanad, Cherthala – 688 521,
Alapuzha District, v
Plot No. M-12, M.I.D.C., Taloja, District
Raigad-410208, v
Hetuda Industrial District, v
C-60, Focal Point, Post Box No.167,
Ludhiana-141010, v
Bethora, Ponda-403401, v
Kanjikode West P. O. Palakkad – 678 623, v Vittal Mallya Road, Industrial Sector, Plot 18, Block ‘D’, Post Kalyani, District Nadia, India |
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|
|
|
Branch Office : |
Located At: · Hari Building No. 6, S. Bhagat Singh Road, Mumbai – 400023, Maharashtra, India Tel. 91-22-22626306/ 22660272/ 22661122/ 22661445 ·
Hoechst Housing, Backbay Recl., Mumbai –
400021, Tel. 91-22-22820925/ 2285 2523 Fax. 91-22-22824063/ 22831880/ 22852934 ·
Wallace Apartment, Tel. 91-22-2305207 |
|
|
|
|
Regional Sales Offices: |
West : Mumbai C/o. Blitz Publication Pvt. Ltd, 3rd Floor, Canada Building, Dr. D. N.
Road, Mumbai – 400 001. Tel: 91-22-22620580 / 2/ 3. East : Kolkata Wallace House, 1st Floor 4, Tel : 91-33-22317853/ 22317850 Fax : 91-33-22805830 South : Level 15, Tel : 91-80-39855231 Fax : 91-80-39855299 North : 1002, Bikaji Kama Bhavan, 10th Floor, Tel : 91-11- 41644873, 41644876 / 5 Fax : 91-11- 41644872 |
DIRECTORS
As on 31.03.2011
|
Name : |
Vijay Mallya |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Kalyan Ganguly |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. A K Ravi Nedungadi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rene Hooft Graa |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Chugh Yoginder Pal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sunil Kumar Alagh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Madhav Bhatkuly |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Govind Iyengar |
|
Designation : |
Director |
|
|
|
|
Name : |
Theo De Rond |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Chhaganlal Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Kiran Mazumdar Shaw |
|
Designation : |
Director |
|
|
|
|
Name : |
Stephan Gerlich |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Govind Iyengar |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Guido De Boer |
|
Designation : |
Chief Finance Officer |
|
|
|
|
Name : |
Mr. Shekhar Ramamurthy |
|
Designation : |
Deputy President |
|
|
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|
Name : |
Cedric Vaz |
|
Designation : |
Executive Vice President [Manufacturing] |
|
|
|
|
Name : |
Joseph Noronha |
|
Designation : |
Executive Vice President [HR] |
|
|
|
|
Name : |
Kiran Kumar |
|
Designation : |
Senior Vice President [Sales] |
|
|
|
|
Name : |
Samar Singh Sheikhawat |
|
Designation : |
Senior Vice President [Marketing] |
|
|
|
|
Name : |
Perry Gose |
|
Designation : |
Senior Vice President [Strategic Planning and Business Analysis] |
|
|
|
|
Name : |
Rohtash Kumar Jindla |
|
Designation : |
Senior Vice President [Operation and Malting] |
|
|
|
|
Name : |
Radhakrishnan Santosh Kumar |
|
Designation : |
Senior Vice President [Procurement and Logistics] |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
21,353,620 |
8.08 |
|
|
85,630,610 |
32.39 |
|
|
106,984,230 |
40.46 |
|
|
|
|
|
|
90,850,440 |
34.36 |
|
|
90,850,440 |
34.36 |
|
Total shareholding of Promoter and Promoter Group (A) |
197,834,670 |
74.82 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
203,298 |
0.08 |
|
|
28,380 |
0.01 |
|
|
660 |
- |
|
|
1,702,907 |
0.64 |
|
|
46,524,776 |
17.60 |
|
|
48,460,021 |
18.33 |
|
|
|
|
|
|
4,839,513 |
1.83 |
|
|
|
|
|
|
11,586,867 |
4.38 |
|
|
709,673 |
0.27 |
|
|
974,405 |
0.37 |
|
|
248,761 |
0.09 |
|
|
656,422 |
0.25 |
|
|
64,542 |
0.02 |
|
|
4,680 |
- |
|
|
18,110,458 |
6.85 |
|
Total Public shareholding (B) |
66,570,479 |
25.18 |
|
Total (A)+(B) |
264,405,149 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
264,405,149 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Beer. |
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|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Licensed
Capacity* |
Installed
Capacity* |
Actual
Production |
|
Beer |
In Hectolitres |
13787500 |
12115500 |
7787868 |
* NOTE: Licensing of products
of the Company under the Industries (Development and Regulation) Act, 1951 is
discontinued and consequently the reported capacities are as per permissions
obtained from the respective regulatory authorities on a yearly basis. As
regards installed capacity, the same has been certified by the Management and
relied upon by the Auditors, being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
1661 [Approximately] |
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Bankers : |
Bank of |
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Facilities : |
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|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
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|
|
|
Subsidiary : |
·
Associated Breweries & Distilleries Limited
(ABDL)* ·
Maltex Malsters Limited (MML) |
|
|
|
|
Associates : |
United East Bengal Football Team Private Limited (UEBFTPL) |
|
|
|
|
Joint Venture : |
Millennium Alcobev Private Limited (MAPL)* |
|
|
|
|
Subsidiaries of the joint ventures : |
·
Empee Breweries Limited (EBL)* ·
United Millennium Breweries Limited (UMBL)* ·
Millennium Beer Industries Limited (MBIL)* * These companies have since amalgamated with the Company with merger
appointed date of April 1, 2010. |
|
|
|
|
Entity which has significant influences : |
·
Scottish and Newcastle India Limited (SNIL) ·
United Breweries (Holdings) Limited (UBHL) |
|
|
|
|
Others : |
·
Scottish and Newcastle Limited (S and N) ·
Heineken ·
Scottish and Newcastle UK Limited (SNUK),
Subsidiary of Scottish and Newcastle Limited ·
Scottish and Newcastle India Private Limited
(SNIPL), Subsidiary of Heineken UK Limited ·
Heineken International B.V. ·
Heineken Romania S.A. ·
Heineken Brouwerijen B.V. ·
Heineken Supply Chain B.V. ·
Force India F1 Team Ltd |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3620000000 |
Equity Shares |
Re.1/- each |
Rs.3620.000 Millions |
|
49140000 |
Preferences Shares |
Rs.100/- each |
Rs.4914.000 Millions |
|
|
Total |
|
Rs.8534.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
254544938 |
Equity Shares |
Re.1/- each |
Rs.254.545
Millions |
|
17283000 |
3% Cumulative Redeemable Preferences Shares [The above shares
are redeemable at par at the earliest on March 31, 2011 and are extendable
upto March 31, 2015 based on mutual agreement between the Company and
Scottish and Newcastle India Limited (the preference shareholder)] The above has
been redeemed at par on April 14, 2011 |
Rs.100/-
each |
Rs.1728.300
Millions |
|
7407000 |
3% Cumulative Redeemable Preferences Shares [The above shares are redeemable at par at the earliest on March 31,
2015] |
Rs.100/-
each |
Rs.740.700
Millions |
|
|
Total |
|
Rs.2723.545 Millions |
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 |
2723.545 |
2709.048 |
2709.048 |
|
|
2] Capital Pending Allotment |
9.151 |
0.000 |
0.000 |
|
|
3] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
4] Reserves & Surplus |
10217.384 |
8888.712 |
8106.431 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
12950.080 |
11597.760 |
10815.479 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4053.197 |
4960.341 |
4410.559 |
|
|
2] Unsecured Loans |
3776.222 |
1753.006 |
1753.006 |
|
|
TOTAL BORROWING |
7829.419 |
6713.347 |
6163.565 |
|
|
DEFERRED TAX LIABILITIES |
288.773 |
216.306 |
173.122 |
|
|
|
|
|
|
|
|
TOTAL |
21068.272 |
18527.413 |
17152.166 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10894.207 |
7807.876 |
6977.630 |
|
|
Capital work-in-progress |
1459.641 |
575.331 |
865.308 |
|
|
|
|
|
|
|
|
INVESTMENT |
1879.660 |
1530.699 |
1940.957 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2898.008
|
1960.165
|
1630.376 |
|
|
Sundry Debtors |
5136.425
|
6162.470
|
4699.634 |
|
|
Cash & Bank Balances |
1296.591
|
833.169
|
417.733 |
|
|
Other Current Assets |
663.168
|
354.491
|
140.769 |
|
|
Loans & Advances |
3465.391
|
2769.404
|
2728.788 |
|
Total
Current Assets |
13459.583
|
12079.699
|
9617.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2643.874
|
1803.354
|
1208.637 |
|
|
Other Current Liabilities |
3601.512
|
1408.816
|
857.097 |
|
|
Provisions |
379.433
|
254.022
|
183.295 |
|
Total
Current Liabilities |
6624.819
|
3466.192
|
2249.029 |
|
|
Net Current Assets |
6834.764
|
8613.507
|
7368.271 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21068.272 |
18527.413 |
17152.166 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
30132.067 |
19974.494 |
16982.709 |
|
|
|
Other Income |
827.841 |
776.834 |
492.991 |
|
|
|
TOTAL (A) |
30959.908 |
20751.328 |
17475.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
17958.663 |
12171.636 |
10472.894 |
|
|
|
Other Expenditure |
8652.678 |
5630.706 |
4327.570 |
|
|
|
TOTAL (B) |
26611.341 |
17802.342 |
14800.464 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4348.567 |
2948.986 |
2675.236 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
781.294 |
555.006 |
896.377 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3567.273 |
2393.980 |
1778.859 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
1305.123 |
882.692 |
762.150 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
2262.150 |
1511.288 |
1016.709 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
789.285 |
541.579 |
391.769 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
1472.865 |
969.709 |
624.940 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2096.938 |
1414.657 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
150.000 |
100.000 |
65.000 |
|
|
|
Proposed Dividend |
269.970 |
187.428 |
170.912 |
|
|
BALANCE CARRIED
TO THE B/S |
3149.833 |
2096.938 |
389.028 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
19.947 |
9.422 |
10.043 |
|
|
TOTAL EARNINGS |
19.947 |
9.422 |
10.043 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
272.748 |
366.030 |
208.882 |
|
|
|
Components and Spares |
5.293 |
20.834 |
656.877 |
|
|
|
Capital Goods |
53.293 |
31.294 |
97.196 |
|
|
TOTAL IMPORTS |
331.334 |
418.158 |
962.955 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
5.26 |
3.68 |
2.29 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
9437.900 |
7331.900 |
9610.600 |
9548.500 |
|
Total Expenditure |
8093.600 |
6778.300 |
8877.300 |
8419.500 |
|
PBIDT (Excl OI) |
1344.300 |
553.600 |
733.300 |
1129.000 |
|
Other Income |
189.500 |
175.400 |
508.100 |
204.700 |
|
Operating Profit |
1533.800 |
729.000 |
1241.400 |
1333.700 |
|
Interest |
242.700 |
190.600 |
280.700 |
264.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
(195.900) |
|
PBDT |
1291.100 |
538.400 |
960.700 |
873.200 |
|
Depreciation |
226.400 |
244.800 |
531.600 |
483.800 |
|
Profit Before Tax |
1064.700 |
293.600 |
429.100 |
389.400 |
|
Tax |
354.300 |
98.400 |
142.900 |
316.600 |
|
Profit After Tax |
710.400 |
195.200 |
286.200 |
72.800 |
|
Net Profit |
710.400 |
195.200 |
286.200 |
72.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.75
|
4.67
|
3.58 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.50
|
7.57
|
5.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.29
|
7.60
|
6.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.13
|
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.12
|
0.88
|
0.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.03
|
3.49
|
4.28 |
LOCAL AGENCY FURTHER INFORMATION
PURCHASE DETAILS:
|
PARTICULARS |
AS ON 31.03.2011 |
|
|
|
QUANTITY IN
HECTOLITRES |
VALUE IN
MILLIONS. |
|
PURCHASES DURING
THE YEAR |
174969 |
615.825 |
|
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 |
No |
|
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 |
|
31) PAN
of Proprietor/Partner/Director, if available |
No |
|
32) Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33) Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
34) External Agency Rating, if available |
Yes |
AMALGAMATIONS:
The Amalgamations
of Associated Breweries and Distilleries Limited (‘ABDL’), MAPL, Empee and UB
Nizam with Appointed Date of April 1, 2010, and CBPL with Appointed Date of close
of business hours on March 31, 2011, were approved by the Honorable High Courts
of Karnataka and Madras.
MBIL and United
Millennium Breweries Limited (‘UMBL’) have been amalgamated into the Company by
the orders passed by Board of Industrial Financial Reconstruction (‘BIFR’) with
Appointed Date of April 1, 2010.
These
consolidations have ensured creation of a larger combined entity, and synergies
in the businesses besides economies of scale. Combining all functions and
operations has not only resulted in enhanced financial performance but also has
provided benefits in the form of managerial and technical expertise, and
financial resources thereby enhancing shareholder value.
CAPITAL:
In view of the consolidation
of share capital through the amalgamation of various companies, the Authorized
Share Capital of the Company now comprises of Equity Share Capital aggregating
to Rs.36200.000 millions and Preference Share Capital of Rs.4914.000 millions.
The Issued, Subscribed and Paid-up Share Capital as on March 31, 2011 stood at
Rs.27240.000 millions, comprising of Equity Share Capital of Re.1 each
aggregating to Rs.254.5400 millions and Cumulative Redeemable Preference Shares
of Rs.100 each aggregating to Rs.2469.000 millions. Upon amalgamation, 9
million Equity Shares of Re. 1 each are to be allotted to eligible shareholders
which will enhance the Issued, Subscribed and Paid-up Share Capital to
Rs.1004.400 millions comprising of 263.7 million Equity Shares of Re. 1 each
and Cumulative Redeemable Preference Shares of Rs.100 each aggregrating to
Rs.740.700 millions. The Company has redeemed 17,283,000 Series – A Cumulative
Redeemable Preference Shares of Rs.100 each held by Scottish and Newcastle
India Limited on April 14, 2011.
MANAGEMENT DISCUSSION AND ANALYSIS:
INDUSTRY OVERVIEW:
Beer is the
world’s most consumed alcoholic beverage and third most popular drink after
water and tea. However, the consumption pattern in India is distinctly
different from other countries, as alcohol consumption is skewed towards
spirits. The per capita consumption of beer in India is very low – at about 1.5
liter per capita it is 5% of the global average. They believe that the primary
reasons for the extremely low consumption of beer are the tax structure, which
does not differentiate between the alcohol content of various classes of
beverages, and the low penetration of outlets for the sale and consumption of
beer in India.
In India, spirits
and beer are treated as similar alcoholic beverages and therefore, taxed on a
similar basis without taking into account the fact that beer contains about
5-7% of alcohol by volume, whereas spirits contain over 40% of alcohol by
volume. The result of this policy is that the consumer price of beer is 2 to 3
times higher than that of spirits on an equivalent alcohol basis.
In the context of
availability, beer and spirits are viewed alike by the Excise Authorities, and
the number of Points of Sale for beer is very low in the country. This too results
in the suppression of beer consumption. In many parts of the country, the
wholesale, and at times the retail distribution points, are controlled by the
State Government. Moreover, in about 60% of India, the State dictates the price
at which beer can be sold by the brewers.
Notwithstanding
the constraints mentioned above, they believe the future of the industry is
very bright. As the economy develops, disposable incomes will keep rising and
this in combination with the young demography of the country, will spur growth
in the beer industry. The size of the Indian beer industry in the year was
approximately 225 million cases, showing a compounded annual growth rate of
around 13% in the past 5 years. During the year the industry grew by 18%.
Salience of the strong beer segment continues to increase and strong beer now
accounts for an estimated 79% of volumes sold.
Subject has not
only successfully overcome the challenges of the industry, but also outpaced
several global beer brands that have entered India in the recent past. In the
process, the Company has increased its market share and widened the gap with
its competitors. The Central and State Governments have been considering a
harmonized Goods and Services Tax (‘GST’) regime for a number of years, but have
not been able to conclude on the terms of this regime. Most notably, there is
likelihood that the alcoholic beverages industry is excluded from GST
altogether. Exclusion of an industry is against the foundation of GST and would
not achieve the stated objective of creating a uniform market with uniform
taxes.
OPERATIONS:
SALES:
The Company had an
excellent year in which volumes grew by 23%, crossing the land mark figure of
125 million cases. The net sales for the year 2010-2011 stood at Rs.30132 million
as against net sales of Rs.19975.000 millions in the previous year, registering
a growth of 51%. In the year, their
combined national market share reached 54%, which is more than twice the size
of the nearest competitor. This is achieved through a national market share of
69% in the mild beer market, and 50% of the strong beer market. UBL achieved
market leadership in the State of Andhra Pradesh for the first time, and
strengthened its presence in Orissa and Uttar Pradesh.
The ubiquitous Kingfisher
brand continues to be the largest selling beer brand in India, with a volume
growth of 20% during the year. ‘Kingfisher Ultra’, ‘Kingfisher Blue’ and
‘Kingfisher Red’ are the latest additions to the Kingfisher portfolio, and have
been received well in the market and are being rolled out across the country.
The Company received two International Awards at the World Beer Awards 2010, as
well as three national awards for excellence in packing at IndiaStar 2010.
Kingfisher Premium and Kingfisher Strong received awards in Asia’s Best Lager
Premium and Asia’s Best Lager Strong categories respectively. Kingfisher
Ultra’s bottle design, Kingfisher’s Premium fourpack carrier and the Kingfisher
premium gift pack were awarded at the IndiaStar 2010.
MANUFACTURING:
Manufacturing
expenses for the financial year 2010-2011 were Rs.15067.000 millions,
constituting 50.0% of net sales, as against Rs.10088.000 millions in the
previous financial year, which constituted 50.6% of net sales. In the previous
financial year, the Company started the infusion of patented bottles in order
to secure the availability of bottles and to obtain efficiencies in the cost of
bottles. Such bottles with embossed name and logo of the Company cannot be used
by other brewers and are to be necessarily supplied back to the Company by the
bottle vendors. This strategy is showing positive results, with the cost of
recycled patented bottles being significantly lower compared to similar
“industry” bottles. The Company intends to complete the establishment of a
patented bottle pool across India in the financial year ending 31 March 2012,
and the cost associated with accelerated investment in new patented bottles is
expected to be recovered in the coming years. The Company has agreements in
place for the supply of malt, barley and bottles.
Most of the units
have installed solid fuel boilers, which has resulted in a reduction in fuel
cost. In order to further reduce power consumption, the Company is exploring
conversion of organic waste into energy to obtain savings in electricity cost
in an environmentally sustainable manner. The breweries are continuously
improving efficiencies in the brewing process and in packaging, thereby
containing overall manufacturing cost. In order to keep pace with the growing
demand, the Company proposes to expand its capacity through expansion of its
existing breweries, building new breweries, and entering into new contract
brewing agreements where required. The proposed Greenfield brewery at
Nanjangud, Karnataka is expected to be commissioned in the next financial year.
In view of the rapid growth, the Company is commencing a Greenfield brewery in
the state of Bihar. The acquisition of land for this purpose at Naubatpur,
Patna through the Bihar Industrial Area Development Authority is completed.
The Company has
augmented brewing capacity by amalgamations of its associate companies viz., UB
Nizam, CBPL and UB Ajanta Breweries Private Limited (‘UB Ajanta’) that operate
in the vital markets of Andhra Pradesh, Tamil Nadu and Maharashtra. Prior to
the Scheme of Amalgamation, the management secured its rights over the CBPL
brewery by payment of facility advance to the promoters of Balaji Distilleries
Limited (now CBPL) which stands amalgamated into the Company. While the scheme for
merger of UB Ajanta is pending approval by BIFR, the Company has secured its
capacity by executing a management agreement.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
|
Sales Tax/other taxes demands under appeal * |
130.369 |
14.672 |
|
|
2.275 |
0.265 |
|
Demand towards Water charges under appeal * |
182.462 |
0.000 |
|
Excise Duty/Customs Duty demands under appeal * |
41.311 |
36.709 |
|
Income Tax demands under appeal* |
403.813 |
188.844 |
|
Service Tax demands under appeal* |
244.646 |
229.114 |
|
Claims against the Company not acknowledged as debt * |
41.320 |
30.568 |
|
Letter of Credit outstanding |
1079.418 |
78.926 |
|
Guarantees given
by the company: |
|
|
|
on behalf of Subsidiaries of Joint Venture to third parties Millennium
Beer Industries Limited |
0.000 |
800.000 |
|
United Millennium Breweries Limited |
0.000 |
600.000 |
|
Empee Breweries Limited |
0.000 |
730.000 |
|
To third parties |
26.624 |
19.060 |
|
Letter of undertaking to distributors towards countervailing duty for
imports from |
38.500 |
38.500 |
|
Total |
2190.738 |
2766.658 |
NOTE: *In the opinion of
the management, the above demands / claims are not sustainable in law and
accordingly no provision has been made in the accounts.
FIXED ASSETS:
v
Goodwill
v
Licenses
v
Land – Freehold
v
Land – Leasehold
v
Buildings
v
Leasehold Improvements
v
Plant and Machinery
v
Office Equipments
v
Furniture and Fittings
v
Laboratory Equipments
v
Vehicles
STATEMENT OF AUDITED
RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2012
Rs. in Millions
|
Sr. No. |
Particular |
Quarter Ended |
Year Ended |
|
|
|
|
31.12.2011 (Unaudited) |
31.03.2012 (Unaudited) |
31.03.2012 (Unaudited) |
|
|
|
|
|
|
|
1. |
Net Sales/Income from Operations |
9789.900 |
9548.500 |
36276.900 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
a) Cost of materials consumed |
5766.700 |
4459.200 |
16037.600 |
|
|
b) Purchases of stock-in-trade |
(1591.300) |
(562.800) |
423.000 |
|
|
c) Changes in
inventories of finished goods, work-in progress and stock-in-trade |
(262.700) |
41.100 |
(182.500) |
|
|
d) Employee benefits expense |
552.100 |
511.800 |
1882.300 |
|
|
e) Depreciation and amortization expense |
531.600 |
483.800 |
1486.600 |
|
|
f) Advertisement & Sales promotion |
1581.000 |
1495.800 |
6045.000 |
|
|
g) Selling & Distribution |
1386.400 |
1052.000 |
3958.100 |
|
|
h) Other expenses |
1432.500 |
1422.400 |
3992.900 |
|
|
Total |
9396.300 |
8903.300 |
33643.000 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
391.600 |
645.200 |
2633.900 |
|
|
|
|
|
|
|
4. |
Other
Income |
330.800 |
204.700 |
729.800 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
722.400 |
849.900 |
3363.700 |
|
|
|
|
|
|
|
6. |
Interest |
293.300 |
264.600 |
991.200 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
429.100 |
585.300 |
2372.500 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
(195.900) |
(195.900) |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
429.100 |
389.400 |
2176.600 |
|
|
|
|
|
|
|
10. |
Tax Expense |
|
|
|
|
|
a)
Current tax |
152.600 |
(83.600) |
492.500 |
|
|
b)
Deferred tax |
0.000 |
113.700 |
113.700 |
|
|
c)
Mat Credit Entitlement |
(9.700) |
286.500 |
306.000 |
|
|
|
|
|
|
|
11. |
Net Profit
from Ordinary Activities after Tax (9-10) |
286.200 |
72.800 |
1264.400 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
286.200 |
72.800 |
1264.400 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
263.700 |
264.400 |
264.400 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
10217.400 |
10217.400 |
10217.400 |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earnings Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
1.05 |
0.25 |
4.68 |
|
|
b)
Basic and diluted EPS after extraordinary items |
1.05 |
0.25 |
4.68 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
66570479 |
66570479 |
66570479 |
|
|
-
Percentage of Shareholding |
25.25 |
25.25 |
25.18 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
17204042 |
17204042 |
17204042 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
8.73 |
8.70 |
8.70 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
6.52 |
6.51 |
6.51 |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
179921050 |
180630628 |
180630628 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
91.27 |
91.30 |
91.30 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
68.23 |
68.31 |
68.31 |
|
PARTICULAR |
QUARTER ENDED
MARCH 31, 2012 |
|
Pending at the
beginning of the quarter |
Nil |
|
Received during
the quarter |
17 |
|
Disposed of
during the quarter |
17 |
|
Remaining unresolved at the end of the quarter |
Nil |
STATEMENT OF ASSETS AND
LIABILITIES
Rs. in Millions
|
PARTICULARS |
31.03.2012 AUDITED |
|
Equity and liabilities |
|
|
Shareholders' fund |
|
|
Share capital |
1005.100 |
|
Reserve & surplus |
12646.300 |
|
Sub-total
- Shareholders' funds |
13651.400 |
|
Non – current liabilities |
|
|
Long term borrowings |
4028.000 |
|
Deferred tax liability (net) |
514.000 |
|
Other long-term liabilities |
0.000 |
|
Long term provisions |
110.800 |
|
Sub-total
- Non-current liabilities |
4652.800 |
|
Current liabilities |
|
|
Short term borrowings |
4355.000 |
|
Trade payables |
5742.600 |
|
Other current liabilities |
4122.900 |
|
Short term provisions |
401.100 |
|
Sub-total
- Current liabilities |
14621.600 |
|
Total -
Equity & Liabilities |
32925.800 |
|
|
|
|
Assets |
|
|
Non-current assets |
|
|
Fixed assets |
14260.400 |
|
Capital work in progress |
0.000 |
|
Non-current investment |
254.700 |
|
Interest in UBL benefits trust |
0.000 |
|
Long term loans & advances |
1437.600 |
|
Other non-current assets |
116.600 |
|
Sub-total
- Non-current Assets |
16069.300 |
|
Current
assets |
|
|
Inventories |
3998.800 |
|
Trade receivables |
6999.700 |
|
Cash & bank balances |
1772.300 |
|
Short term loans & advances |
2926.500 |
|
Other current assets |
1159.200 |
|
Sub-total
- Current Assets |
16856.500 |
|
Total –
Assets |
329.25.800 |
NOTES:
1. The Company is
engaged in manufacture, purchase and sale of Beer including licensing of
brands, which constitutes a single business segment. The Company also considers
the whole of India as a single geographical segment.
2. The investment
in Maltex Malsters Limited (MML), which had a carrying value of Rs. 450.000
Millions, has been revalued at Rs. 254.100 Millions. The provision for the
diminution appears under Exceptional items in item No.8 in the attached
financials. The diminution in book value of this investment has been due to
continued delays in obtaining necessary approvals to expand its malting
facility at Patiala. Considering the constraints in MML’s expansion plans and
the high overhead costs incurred on operating at its current level of capacity,
the investment has been valued based on the commercial value of the land on
which the business is currently situated on.
3. Regarding
amalgamations undertaken by your Company:
a) The Scheme of
Amalgamation (Scheme) for amalgamating Associated Breweries and Distilleries
Limited (ABDL), Millennium Alcobev Private Limited (MAPL) and Empee Breweries Limited
(EBL) with the Company has been made effective April 1, 2010.
b) The Schemes for
amalgamation of Millennium Beer Industries Limited (MBIL) and United Millennium
Breweries Limited (UMBL) with the Company have been approved by Board for Industrial
and Financial Reconstruction (BIFR) on November 11, 2011 and November 21, 2011
respectively. Upon necessary filing with the Registrar of Companies, the
Schemes have become effective on November 16, 2011 and November 21, 2011
respectively. The appointed dates of the Schemes are April 1, 2010.
c) The Schemes for
amalgamation of UB Nizam Breweries Private Limited (UBN) and Chennai Breweries
Private Limited (CBPL) with the Company have been approved by the High Court of
Karnataka and Madras. Upon necessary filing with the Registrar of Companies,
the scheme has become effective on November 8, 2011 and November 12, 2011
respectively. The appointed date of the Scheme is April 1, 2010 for UBN,
whereas for CBPL it is close of business hours as on March 31, 2011.
d) The Scheme for
amalgamation of UB Ajanta Breweries Private Limited with the Company has been
approved by the Board for Industrial and Financial Reconstruction (BIFR) on
February 13, 2012. The appointed date of the Scheme is effective April 1, 2011.
e) Consequent to
the various Amalgamations as detailed in (a), (b) (c) and (d) above:
i. The figures for
the quarter ended March 31, 2011 include the full year results of MAPL and
Empee.
ii. The figures
for the year ended March 31, 2011 include the full year results of MAPL, Empee,
MBIL, UMBL and UBN.
iii. The figures
for the quarter and year ended March 31, 2012 include the full year results of
UB Ajanta Breweries Private Limited.
iv. The figures
for the quarter and year ended March 31, 2012 include the results of CBPL.
v. The purchases
of traded goods from MBIL until September 30, 2011 have been reversed during
the quarter ended December 31, 2011. The purchases of traded goods for the full
year from UB Ajanta until December 31, 2011 have been reversed during the
quarter ended March 31, 2012.
vi. In view of the
above, the figures for the quarter and year ended March 31, 2012 are not
comparable with those of corresponding periods of the previous year and the
immediately preceding quarter.
f) Arising out of
the Amalgamation of EBL into UBL, UBL Benefit Trust held 60,07,413 equity
shares in UBL constituting 2.36% of UBL’s paid up equity capital. The Trust has
sold its entire shareholding and remitted the entire proceeds aggregating
Rs.2835.700 Millions to UBL. The entire proceeds have been utilized towards
reducing the Debt of the Company. The gain on sale of these shares aggregating
to Rs. 1405.000 Millions has been credited to the General Reserve.
g) Arising out of
amalgamation of UBN, CBPL, MBIL and UB Ajanta 98,60,211 equity shares of Re.1
each has been allotted and these shares have been listed.
4. The Company had
entered into an agreement with the promoters of Balaji Distilleries Limited
(BDL) with a view to secure perpetual usage of its brewery and grant of first
right of refusal in case of sale or disposal of its brewery unit in any manner
by BDL, towards which the Company had made a refundable facility advance of
Rs.1550.000 Millions to Star Investments Private Limited (Star), one of the Promoter
Companies of BDL, acting for itself and on behalf of the other Promoters.
Subsequently, BDL filed a scheme of arrangement for amalgamation of its
distillery into United Spirits Limited (USL) and de-merger of its brewery into
Chennai Breweries Private Limited (CBPL) and the said Scheme was approved by
Appellate Authority for Industrial and Financial Reconstruction in November
2010.The Brewery assets proposed to be acquired by the Company from the
Promoters of BDL eventually vested in CBPL which was a 100% subsidiary of USL.
A Scheme for Amalgamation of CBPL into the Company was then filed. Upon
amalgamation of CBPL into the Company, USL has been allotted equity shares in
terms of the approved Scheme. On November 22, 2011, the Company entered into an
agreement extending the repayment of principal and interest outstanding till
March 2012, and obtained a pledge of securities from associate companies of
Star to secure the outstanding amounts. The company has received payments of
Rs. 298.000 Millions towards interest after the repayment date and the
aggregate amount due as on March 31, 2012 is Rs. 2119.600 Millions. The Company
has received the interest dues in full and has also received partial principal
amounting to Rs.1119.000 Millions after March 31, 2012 till date. The company
has also obtained a pledge of securities from associate companies of Star to
secure the remaining dues. The company has obtained an independent chartered
accountant valuation on the pledge of securities provided for the balance dues and
the same are adequate to cover the balance dues.
5. The Company has
redeemed Series A 3% 17,283,000 Cumulative Redeemable Preference Shares of Rs.
100 each amounting to Rs. 1728.300 Millions on April 15, 2011.
6. The Company has
paid a dividend of Rs. 3/- per Cumulative Redeemable Preference Share amounting
to Rs. 86.100 Millions (inclusive of Dividend Distribution Tax) for the year
ended March 31, 2011 to Scottish and Newcastle India Limited. The Company has
paid a Dividend of Re.0.60 per Equity Share amounting to Rs. 183.900 Millions
(inclusive of Dividend Distribution Tax) for the year ended March 31, 2011.
7. The Board has
approved a final dividend of Re.0.70 per share on the Equity Share amounting
Rs.215.100 Millions (inclusive of Dividend Distribution Tax) for the year ended
March 31, 2012, which is subject to the approval of the Shareholders in Annual
General Meeting. The Board also approved the dividend of Rs.3 per Cumulative
Redeemable Preference Shares amounting to Rs.28.100 Millions (inclusive of
Dividend Distribution Tax) for the year ended March 31, 2012.
8. Earnings per
Share (EPS) are stated after providing for Dividend on the Cumulative
Redeemable Preference Shares for the quarter and for the year ended March 2012.
9. The figures for
the last quarter are the balancing figures between the audited figures in
respect of the full financial year and the year to date figures upto the third
quarter of the financial year.
10. The figures
relating to the previous year/period(s) have been regrouped / reclassified
wherever necessary.
11. The audited
results for the year ended March 31, 2012 have been approved by the Board of
Directors at its meeting held on June 8, 2012.
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.55.17 |
|
|
1 |
Rs.86.43 |
|
Euro |
1 |
Rs.68.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
57 |
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.