1. Summary Information
|
|
|
Country |
|
|
Company Name |
MRF LIMITED |
Principal Name 1 |
Dr. K. C. Mammen |
|
Status |
Excellent |
Principal Name 2 |
Mr. Ashok Jacob |
|
|
|
Registration # |
18-004306 |
|
Street Address |
New No. 114, (Old no. 124) |
||
|
Established Date |
05.11.1960 |
SIC Code |
-- |
|
Telephone# |
91-44-28292777 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-44-28295087/ 28294089 28291844/ 0562 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
New Pneumatic Tyres of Rubber |
|
|
# of employees |
13812
[Approximately] |
Product Name 2 |
Inner Tubes of Rubber |
|
Paid up capital |
Rs.42,411,000 |
Product Name 3 |
-- |
|
Shareholders |
Promoter and Promoter Group
(26.86 %) Public shareholding (73.14 %) |
Banking |
State Bank of |
|
Public Limited Corp. |
NO |
Business Period |
52 Years |
|
IPO |
NO |
International Ins. |
- |
|
Public |
NO |
Rating |
Aa
(73) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary |
|
MRF Corporation Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
30.09.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
16,217,200,000 |
Current Liabilities |
8,375,300,000 |
|
Inventories |
15,260,200,000 |
Long-term Liabilities |
22,447,800,000 |
|
Fixed Assets |
19,713,800,000 |
Other Liabilities |
9,469,800,000 |
|
Deferred Assets |
00,000 |
Total Liabilities |
40,292,900,000 |
|
Invest& other Assets |
12,079,400,000 |
Retained Earnings |
22,935,300,000 |
|
|
|
Net Worth |
22,977,700,000 |
|
Total Assets |
63,270,600,000 |
Total Liab. & Equity |
63,270,600,000 |
|
Total Assets (Previous Year) |
40,089,600,000 |
|
|
|
P/L Statement as of |
30.09.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
97,684,800,000 |
Net Profit |
6,194,200,000 |
|
Sales(Previous yr) |
74,818,500,000 |
Net Profit(Prev.yr) |
3,539,800,000 |
MIRA
INFORM REPORT
|
Report Date : |
16.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
MRF LIMITED |
|
|
|
|
Registered
Office : |
New No. 114, (Old
No. 124), |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.09.2011 |
|
|
|
|
Date of
Incorporation : |
05.11.1960 |
|
|
|
|
Com. Reg. No.: |
18-004306 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.42.411 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L25111TN1960PLC004306 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHEM07088E CHEM06754G CHEM04457F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACM4154G |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company’s
Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of
Business : |
Manufacturer of tyres in almost all
segments. |
|
|
|
|
No. of Employees
: |
13812 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (73) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit
Limit : |
USD 91000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment
Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a
well-established and reputed company having fine track. Financial position of the company appears
to be good. Fundamentals of the company are strong and healthy. Payments are
reported to be regular and as per commitments. The company can
be considered for normal 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 |
AA+ (Long Term Rating) |
|
Rating Explanation |
Having high degree of safety regarding timely servicing of financial
obligation it carry very low credit risk. |
|
Date |
June 2012 |
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 : |
New No. 114, (Old
no. 124) |
|
Tel. No.: |
91-44-28292777 |
|
Fax No.: |
91-44-28295087/
28294089 28291844/ 0562 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Overseas Office : |
·
Tel. 9714-2239657 / 603 Fax. 9714-2239660 E-mail. mrfdubai@emirates.net.ae Contact Person - Biju Abraham Thomas,
General E-Mail : mrfdubai@emirates.net.ae ·
1764,
Tel. 91-001-330-9291594 Res. 91-001-330-9283096 Fax. 91-001-330-9290306 E-mail. jkillian@neo.rr.com ·
Located
at Tel. 305-392-5069 (O) Fax : 305-513-4493 E-Mail: mrd@bellsouth.net ·
#
69/K, E-mail : mrfdhaka@bangla.net ·
213,
Nguyen Van Troi, Ward 11, Disrtrict – Phu Nhuan HCMC, Tel.: 00848-8459837 Fax: 00848-8478434 E-Mail: mrfvietnam@hcm.vnn.vn
·
Located
at Tel : 07-55307765 Fax : 07-55307765 E-Mail: kencon@bigpond.com.au |
|
|
|
|
Factory 1: |
P.B. No. 2, Sadasivapet, Medak District, |
|
Tel. No.: |
91-8455-2526.01 to 252609 (9 Lines) 91-8455- 252630 (Purchase) |
|
Fax No.: |
91-8455-252614 |
|
|
|
|
Factory 2: |
Tiruvottiyur, Chennai, |
|
|
|
|
Factory 3: |
Vadavathoor, |
|
|
|
|
Factory 4: |
Usgao, Ponda, |
|
|
|
|
Factory 5: |
Icchiputhur, Arakonam, |
|
|
|
|
Factory 6: |
|
|
|
|
|
Factory 7: |
Sipcot Industrial
Complex, Gummidipoondi, |
|
|
|
|
Branch Office
: |
C – 79, Ground
Floor, Okhla Industrial Area, Phase – I, E-mail : mrfpaint.del@gnmds.global.ems.vsnl.net.in No. 2, Ground Floor,
Plot No. 374, Build Arch Terrace, Sitla Devi Temple Road, Mahim, India Tel. No.
91-22-24463565 E-mail : mrfpaint.bby@gnbom.globalnet.ems.vsnl.net.in E-mail : mrfpaint.mds@gnmds.globalnet.ems.vsnl.net.in No. 2, New Tel. No. :
91-33-24589830 |
DIRECTORS
AS ON 09.02.2012
|
Name : |
Mr. K. M. Mammen |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Arun Mammen |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. K. M. Philip |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. Rahul Mammen
Mappillai |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Dr. K. C. Mammen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok Jacob |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. Sridhar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijay R.
Kirloskar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ranjit I.
Jesudasen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjay Sharad Vaidya |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Salim Joseph Thomas |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Ravi Mannath |
|
Designation : |
Compliance Officer, Company Secretary |
|
|
|
|
Name : |
Mr. Kurian and
Kurian |
|
Designation : |
Legal Advisors |
|
|
|
|
Name : |
John Zachariah |
|
Designation : |
Vice President Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
577564 |
13.62 |
|
|
554429 |
13.07 |
|
|
1131993 |
26.69 |
|
|
|
|
|
|
21625 |
0.51 |
|
|
21625 |
0.51 |
|
Total
shareholding of Promoter and Promoter Group (A) |
1153618 |
27.20 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
274967 |
6.48 |
|
|
3269 |
0.08 |
|
|
181568 |
4.28 |
|
|
179377 |
4.23 |
|
|
639181 |
15.07 |
|
|
|
|
|
|
1082376 |
25.52 |
|
|
967,073 |
22.80 |
|
|
398,895 |
9.41 |
|
|
2448344 |
57.73 |
|
|
3087525 |
72.80 |
|
Total
Public shareholding (B) |
4241143 |
100.00 |
|
Total
(A)+(B) |
- |
- |
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
4241143 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of tyres in almost all
segments. |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 30.09.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Automobile Tyres |
Nos. |
@ |
34300000 |
34771158 |
|
Automobile Tubes |
Nos. |
@ |
33100000 |
31381790 |
|
Tread Rubber |
MT |
7946 |
8943 |
1056 |
|
Pre-cured Treads |
MT |
@ |
24000 |
7683 |
|
Conveyor Belting |
MT |
@ |
3000 |
2042 |
|
Specialty Surface
Coatings |
KL |
@ |
2000 |
1484** |
@ Not Applicable,
since delicensed.
+ On 3 shifts per
day basis for 300 days per annum.
** Outsourced
production.
Figures in brackets are in respect of previous year.
GENERAL INFORMATION
|
No. of Employees : |
13812 [Approximately] |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State
Bank of ·
National
Bank of Abu –Dhabi – ·
Standard
Chartered Bank – ·
Bank
for Foreign Trade of ·
Syndicate
Bank |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
|
·
Sastri
and Shah Chartered Accountants Chennai, ·
M. M.
Nissim and Company Chartered Accountants Mumbai, |
|
|
|
|
Memberships : |
·
Confederation
of Indian Industry |
|
|
|
|
Subsidiaries : |
·
MRF Corporation Limited ·
MRF International Limited ·
MRF Lanka (Private) Limited |
CAPITAL STRUCTURE
AS ON 09.02.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Shares |
Rs.10/- each |
Rs. 90.000 Millions |
|
100000 |
Taxable Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs. 10.000 Millions |
|
|
Total |
|
Rs. 100.000
Millions |
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4241214 |
Equity Shares |
Rs.10/- each |
Rs. 42.400
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4241143 |
Equity Shares |
Rs.10/- each |
Rs. 42.411
Millions |
|
|
|
|
|
Notes:
Of the above
(i)
5,54,461 Equity Shares allotted as fully paid-up
pursuant to a contract without payments being received in cash.
(ii)
17,81,118 Equity Shares allotted as fully paid-up
by way of Bonus Shares by Capitalization of Reserves
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2011 |
30.09.2010 |
30.09.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
42.400 |
42.400 |
42.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
22935.300 |
16864.400 |
13571.800 |
|
|
4] (Accumulated Losses) |
0.000 |
0.0000 |
0.000 |
|
|
NETWORTH |
22977.700 |
16906.800 |
13614.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11688.700 |
4879.600 |
1378.900 |
|
|
2] Unsecured Loans |
10759.100 |
8201.200 |
4822.800 |
|
|
TOTAL BORROWING |
22447.800 |
13080.800 |
6201.700 |
|
|
DEFERRED TAX LIABILITIES |
1418.000 |
0.000 |
0.000 |
|
|
DEFFERED PAYMENT CREDIT |
404.300 |
463.800 |
518.600 |
|
|
|
|
|
|
|
|
TOTAL |
47247.800 |
30451.400 |
20334.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
19713.800 |
13289.100 |
9335.600 |
|
|
Capital work-in-progress |
11352.500 |
4977.200 |
2850.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
726.900 |
726.900 |
1485.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
150.000 |
123.500 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
15260.200
|
11106.800 |
6504.700
|
|
|
Sundry Debtors |
13080.900
|
8114.900 |
5800.300
|
|
|
Cash & Bank Balances |
572.400
|
451.800 |
598.900
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
2563.900
|
1272.900 |
979.900
|
|
Total
Current Assets |
31477.400
|
20946.400 |
13883.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
8375.300
|
6633.300 |
4890.700 |
|
|
Other Current Liabilities |
5571.900
|
1293.400 |
981.000
|
|
|
Provisions |
2075.600
|
1711.500 |
1472.500
|
|
Total
Current Liabilities |
16022.800
|
9638.200 |
7344.200 |
|
|
Net Current Assets |
15454.600
|
11308.200 |
6539.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
47247.800 |
30451.400 |
20334.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2011 |
30.09.2010 |
30.09.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
97353.400 |
74527.200 |
56638.000 |
|
|
|
Export Incentives |
78.300 |
110.200 |
90.400 |
|
|
|
Other Income |
253.100 |
181.100 |
253.600 |
|
|
|
TOTAL (A) |
97684.800 |
74818.500 |
56982.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
71070.700 |
50153.100 |
37097.400 |
|
|
|
Other Expenses |
18313.400 |
16080.300 |
12717.400 |
|
|
|
Exceptional Items |
(4042.300) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
85341.800 |
66233.400 |
49814.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
12343.000 |
8585.100 |
7167.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
930.200 |
631.000 |
689.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
11412.800 |
7954.100 |
6478.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
2476.300 |
2607.500 |
2493.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
8936.500 |
5346.600 |
3984.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2742.300 |
1806.800 |
1454.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
6194.200 |
3539.800 |
2530.300 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
25.400 |
25.400 |
25.400 |
|
|
|
Final Proposed Dividend |
80.600 |
80.600 |
80.600 |
|
|
|
Special Proposed Dividend |
0.000 |
106.000 |
0.000 |
|
|
|
Tax Thereon |
17.300 |
35.200 |
18.000 |
|
|
|
Debenture Redemption Reserve |
179.400 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
5891.500 |
3292.600 |
2406.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
8233.000 |
6692.700 |
5005.600 |
|
|
|
Other Earnings |
3.800 |
4.100 |
4.300 |
|
|
TOTAL EARNINGS |
8236.800 |
6696.800 |
5009.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
23076.600 |
18182.200 |
10587.100 |
|
|
|
Stores & Spares |
381.700 |
146.100 |
249.200 |
|
|
|
Capital Goods |
3390.100 |
1515.500 |
483.700 |
|
|
TOTAL IMPORTS |
26848.400 |
19843.800 |
11320.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1460.50 |
834.63 |
596.61 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
31.12.2011 |
31.03.2012 |
31.06.2012 |
|
Type |
|
|
|
|
Net Sales |
28754.900 |
29928.000 |
30082.700 |
|
Total Expenditure |
26179.800 |
26669.800 |
26851.600 |
|
PBIDT (Excl OI) |
2575.100 |
3258.200 |
3231.100 |
|
Other Income |
39.300 |
52.600 |
36.200 |
|
Operating Profit |
2614.400 |
3310.800 |
3267.300 |
|
Interest |
318.200 |
385.300 |
393.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
2296.200 |
2925.500 |
2874.000 |
|
Depreciation |
647.300 |
720.100 |
776.600 |
|
Profit Before Tax |
1648.900 |
2205.400 |
2097.400 |
|
Tax |
520.000 |
704.100 |
651.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1128.900 |
1501.300 |
1445.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1128.900 |
1501.300 |
1445.600 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2011 |
30.09.2010 |
30.09.2009 |
|
PAT / Total Income |
(%) |
6.34
|
4.73 |
4.44 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.18
|
7.17 |
7.04 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.46
|
15.55 |
17.07 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.32 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.74
|
1.34 |
0.99 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.96
|
2.17 |
1.89 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN 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 |
FINANCIAL RESULTS
The Company’s
turnover this year has for the first time crossed the Rs. 100000.000 Millions
mark, to settle at Rs. 106370.300 Millions, which is a landmark achievement.
This reflects a sales growth of 32%. Across the board, there were positive
increases, with a 12% increase in volumes in all segments. During the year, the
continued increase in the price of natural rubber and other key raw materials
has impacted the performance of the Company. The price of natural rubber
reached its peak in April 2011. Similarly prices of other raw materials like
synthetic rubber, carbon black etc. have increased substantially from February
2011. The increase has adversely impacted the margins during the year. Despite
the above, the Company could manage and maintain its profit levels with better
operating efficiencies and cost cutting measures which the Company has
undertaken over a period of time.
Two interim
dividends of Rs. 3 each per share (30% each) for the year ended 30th September,
2011 were declared by the Board of Directors on 28-07-2011 and on 20-10-2011.
The Board of Directors is now pleased to recommend a final dividend of Rs. 19
per share (190%) on the paid up equity share capital of the Company, for
consideration and approval of the shareholders at the Annual General Meeting.
With this, the total dividend for the entire year works out to Rs. 25 per share
(250%). The total amount of dividends aggregates to Rs. 106.000 Millions.
The Directors
recommend that after making provision for taxation, debenture redemption
reserve and proposed dividend, an amount of Rs. 5891.500 Millions be
transferred to General Reserve. With this, the Company’s Reserves and Surplus
stands at Rs. 22935.300 Millions.
INDUSTRIAL RELATIONS
Overall, the
industrial relations in all their manufacturing units have been harmonious and
cordial, except in Thiruvottiyur and Kottayam factories for a short duration. Both
production and productivity were maintained at the desired satisfactory levels
throughout the year in all the units.
PROSPECTS FOR THE CURRENT YEAR
While the demand
outlook for tyres appears favourable with a 8 to10% annual growth forecast, the
pressure on margins will continue unless the cost issues are addressed. Most
tyre companies are planning capacity expansions especially in the truck radial
segment and this development will fuel competition in this segment and the tyre
industry in general. Also, the Government should study the inverted duty issue
and take corrective action by providing a level playing field for the tyre
industry.
The rising raw
material costs such as that of natural rubber, oil and oil derivatives which
are used in the manufacture of tyres, interest costs and rising imports of
tyres, will be the areas of concern for all tyre companies.
Since the tyre
industry is highly competitive and price sensitive, it is unable to pass on
completely the increase in raw material costs to its customers. The above
increases are bound to adversely impact the margins of the Company. However, in
the past two months, the prices have shown a declining trend.
The Company hopes
to record satisfactory results on account of MRF’s high brand preference and
trust reposed by customers in MRF products.
MANAGEMENT DISCUSSION AND ANALYSIS
(Within the limits set by the Company’s competitive position)
The core business
of MRF is manufacturing, distribution and sale of tyres for various kinds of
vehicles. The management discussion and analysis given below discusses the key
issues for various sectors of the business.
The turnover of
the Indian tyre Industry is valued at Rs. 300000.000 Millions for the period 2010-11.
Exports accounted for Rs. 36000.000 Millions. 1192 lakh tyres were produced by
39 tyre companies. Ten top companies produce 95% of the total production.
Truck and Bus
tyres constitute 65% of the tyre industry turnover. Around 70% of the turnover is
sold in the replacement market which is competitive but margins are better. The
OE segment cannot be ignored as volumes are high but margins are less as prices
are dependent more on the manufacturers of vehicles. In the Passenger Car
group, 54% of tyres are sold to OEMs and 42% in the replacement segment.
The tyre industry
is raw material intensive and predominantly cross-ply or bias-ply tyres are
manufactured. The truck, bus and LCV segments continue to be cross-ply based
due to poor road conditions, low OE fitment and high initial cost. Passenger
tyres are currently 98% radial tyres. Radialisation in the light commercial
vehicle group is 18% and in heavy vehicles (truck and bus) the level is 15%.
The tyre companies
produce truck tyres and a range of non truck tyres. Segment wise, there has
been a 14% increase in the production of heavy commercial vehicles and a 15%
increase in light commercial vehicles. There has been a significant increase of
47% in the small commercial vehicle segment. In the passenger and utility
group, there has been an increase of 14% and 13% respectively over the last
year. In two wheelers, scooter segment production witnessed a 31% increase
whilst in the motorcycle segment, production increased by 20%. In the farm
segment, there was a 38% increase in production over 2009-10.
The tyre industry
provides direct and indirect employment to one million people, including
dealers, retreaders and truck operators. The truck operations are controlled by
2.6 million small operators.
There are around
5,000 tyre dealers spread throughout the country, most of whom sell multiple
tyre brands.
SEGMENT WISE AND PRODUCT WISE PERFORMANCE
During the period
2010-11, MRF achieved a turnover of Rs. 106370.300 Millions - a record turnover
and the first tyre company to cross the Rs. 100000.000 Millions mark. This is
an increase of 32% over the previous year. Across the board, there were
positive increases, with a 12% increase in volumes in all segments. In the
heavy commercial vehicle group which is the largest segment, the increase was
11% over the last year. In the motorcycle and scooter segments, the increases
over the previous year were significant at 14% and 24% respectively. The
passenger car group registered an increase of 5%. In the farm group, production
increased in the tractor (front) group by 8% and 21% in the tractor (rear)
categories.
OUTLOOK
While the demand
outlook for tyres appears favourable with a 8 to10% annual growth forecast, the
pressure on margins will continue unless the cost issues are addressed. Most
tyre companies are planning capacity expansions especially in the truck radial
segment and this development will fuel competition in this segment and the tyre
industry in general. The growth of the tyre industry will also depend upon the
expansions in the automobile industry and the efforts made by the Government to
improve the road infrastructure. Also, the Government should study the inverted
duty issue and take corrective action by providing a level playing field for
the tyre industry.
PERFORMANCE OF THE COMPANY
The sales turnover
of the Company during the year has increased from Rs. 808.045 Millions in
2009-10 to Rs. 106370.300 Millions in 2010-11, an increase of about 32%. The
profit before taxation after including exceptional item stood at Rs. 8936.500
Millions in the current year as against Rs. 5346.600 Millions in the previous
year. The Exceptional item of Rs. 4042.300 Millions represents reversal of
excess depreciation of earlier years, due to change in method of depreciation
from Written Down Value (WDV) to Straight Line Method (SLM). After making
provision for income tax, the net profit for the year stood at Rs. 6194.200
Millions as compared to Rs. 3539.800 Millions, in the previous year.
FIXED ASSETS
· Land and Building
· Plant and Machinery
· Moulds
· Vehicles
WEB DETAILS
BUSINESS
DESCRIPTION
Subject is an India-based company engaged in the manufacturing,
distribution and sale of tyres for various kinds of vehicles. The Company has passenger
car tyres, commercial vehicle tyres and the heavy commercial vehicle tyres. The
operations of the Company primarily include to the manufacture of rubber
products, such as tyres, tubes, flaps, tread rubber and conveyor belt. The
Company’s other business operations consists of manufacturing and dealing in
specialty coatings, sports goods and other products. Its subsidiaries include
MRF Corp Limited, MRF International Limited and MRF Lanka (P) Limited. As of
September 30, 2010, the Company’s plants were located in
BOARD OF DIRECTORS
:
Mr. K. M. Mammen
Mr. K. M. Mammen is Executive Chairman of the Board, Managing Director
of Subject Mr. Mammen is a graduate from The Madras Christian College. After
graduation, he went to
Mr. Ashok Peter
Jacob
Mr. Ashok Peter Jacob is a Non-Executive Director of MRF Limited since
26 October 1998. He holds an MBA from
Mr. Ranjit I.
Jesudasen
Mr. Ranjit I. Jesudasen is Non-Executive Independent Director of MRF
Limited since 29 July 2003. He holds a B.Com., Diploma in Export Management.
Undergone training in
Mr. Vijay R.
Kirloskar
Mr. Vijay R. Kirloskar is Non-Executive Independent Director of Subject
He has been associated with Kirloskar Electric Company (KEC) since 1978. In
1982, he took over the reins of KEC as its President and in 1994, he became the
Chairman and Managing Director of KEC Mr. Kirloskar has been instrumental in
promoting the Kirloskar Companies business interest in
Mr. N. Kumar
Mr. N. Kumar is Non-Executive Independent Director of Subject He is the
Vice-Chairman of the Sanmar Group, a well known Industrial Group in
Mr. Arun Mammen
Mr. Arun Mammen is Managing Director, Executive Director of Subject
After graduating from
Mr. Rahul Mammen
Mr. Rahul Mammen Mappillai is the Whole-Time Director of Subject He
holds B.A., [Hons.], M.A., M.B.A. degrees. Mr. Rahul Mammen Mappillai is B.A.
(Hons) Economics from
Mr. K. M. Philip
Mr. K. M. Philip is Whole-Time Director of Subject Mr. Philip is a MA
degree. He has been associated with the rubber industry from 1939 onwards. He
represented the rubber industry on the rubber board for 17 years. He is well
versed in general management skills and in particular, identification and
evaluation of macro environment of the tyre industry in India.He has been
associated with the Indian Rubber Industry from 1 939 onwards. He was Founder
member of the All India Rubber Industries Assn. Editor of "Rubber
India" for 1 2 years. Honorary Member for life of the All India Rubber
Industries Assn. Fellow of Royal Chartered Institute of Materials,
Mr. V. Sridhar
Mr. V. Sridhar is Non-Executive Independent Director of Subject since 27
July 2000. He has wide and varied experience in family business of M/s V
Perumal Chetty and Sons for more than 22 years. He is also involved in
International Freight forwarding.
Dr. Salim Joseph
Thomas
Dr. Salim Joseph Thomas is Non-Executive Independent Director of Subject
Dr. Thomas was appointed as Additional Director of the Company on 23 January
2009 and appointed as a Director in the AGM held on 19 March 2009. He is an
MBBS Graduate from the Armed Forces Medical College, Pune. He has obtained his
MS and MNAMS [GenSurgery] in 1979. Dr Salim J Thomas has served in the Indian
Navy from 1971-1986. He was a member of the first Indian Antarctic Expedition
in 1981. He is a recipient of Nao Sena Medal for Gallantry by the President of
India in 1982 Presently he is a Senior Consultant attached to Apollo Speciality
Hospital Chennai. He is a trustee of
Mr. S. S. Vaidya
Mr. S. S. Vaidya is the Non-Executive Independent Director of Subject He
holds M.Com., I.C.W.A., F.C.A.. Mr S S Vaidya is a Chartered Accountant and
Cost Accountant. He has been in practice as Chartered Accountant for more than
30 years and is a partner in M/s Kunte and Vaidya, Chartered Accountants, Pune.
In his professional career, Mr S S Vaidya dealt with and handled various
Corporate/Legal Matters under Tax Laws, Company Law, MRTP Act, FERA etc., for
various Industrial/ Corporate groups. Mr S S Vaidya also serves on the Boards
of several other Public/Private Limited Companies. His other Directorships
include Bosch Chassis Systems India Limited, BF Utilities Limited, BF Systems
Limited, Kalyani Steels Limited, Nandi Economic Corridor Enterprises Limited,
Nandi Infrastructure Corridor Enterprise Limited, Nandi Highway Developers
Limited, Sahyadri Hospitals Limited, Sharp India Limited and Kalyani
Investments Co Limited
MILESTONES:
1946
A
young entrepreneur, K. M. Mammen Mappillai, opened a small toy
balloon-manufacturing unit in a shed at Tiruvottiyur, Chennai, Tamil Nadu,
1949
Although the 'factory' was just a small shed, a variety of products like
balloons, latex cast squeaking toys and industrial gloves were manufactured.
During this time, MRF
established its first office at 334,
1952
MRF ventured into the manufacturing of tread rubber,
with the installation of a rubber mill at the factory. This step into tread
rubber manufacture was later to catapult the Company into a league that few had
dreamt of.
1955
MRF became the only Indian-owned
unit to manufacture the superior, extruded, non-blooming and cushion-backed
tread rubber that enabled it to compete with the MNC's operating in India
during that period.
1956
By
the last half of 1956, MRF
became the market leader in the tread rubber industry with a whopping 50%
market share, leaving no other option for large multinationals, but to withdraw
from the tread rubber business in India.
1961
After the huge success in the tread rubber industry, MRF entered into the manufacture of
tyres, by establishing technical collaboration with the Mansfield Tire &
Rubber Company of,
1963
On June 12, 1963, India's first Prime Minister, Late Pandit Jawaharlal Nehru
laid the foundation stone for the Rubber Research Centre at Tiruvottiyur to
commemorate the inauguration of the factory.
1964
The main plant was commissioned in 1964; MRF ventures into the export market by setting up an overseas
office at Beirut (Lebanon) to develop this market, which was amongst India's
very first efforts in export. This year also marked the birth of the now famous
'MRF Muscleman'.
1967
MRF became the first Indian
company to export tyres to
1973
MRF made a quantum leap by becoming
one among the very first in
1978
MRF developed Superlug 78, a
sturdy tyre for heavy-duty trucks. The tyre was a significant improvement over
existing products in this category, and moved on to become
1979
MRF's turnover crossed 1 billion
INR, a landmark that the company had achieved after 33 years.
1980
MRF entered into a technical collaboration with
the B. F. Goodrich Tyre Company,
1983
MRF began a rapid product
development programme for new vehicles entering
1984
Sales crossed 2 billion Indian Rupees. MRF
tyres get selected as the first tyres to be fitted onto
1985
MRF introduced Nylogrip tyres
for two-wheeler vehicles.
1986
MRF was selected for the most
prestigious National Institution of Quality Assurance award and for 6 Quality
Improvement Awards instituted by B.F. Goodrich Tyre Company,
1987
MRF became the No. 1 tyre
company in
1988
The MRF Pace Foundation was set
up under the guidance of Australian pace bowling legend, Dennis Lillee. Not
long thereafter, pace bowlers trained at the foundation were selected for the
Indian Cricket Team.
1989
MRF became the clear market
leader in every tyre segment in
The company then entered into collaborations with:
·
Hasbro International USA, the world's largest toy
maker, and thereby launched Funskool
·
Vapocure
·
Pirelli
1989
MRF launched ZIGMA CC Radial together
with the MRF-World Series
Cricket Tournament for the Jawaharlal Nehru Trophy. The then Chief Minister of
Tamil Nadu, Dr. M. Karunanidhi, awarded the Company, a Special Export Award.
The Company opened the Tyredrome,
1990
MRF conducted the 6th World Cup Boxing
Championship in Mumbai - with 39 countries participating. This was telecast
live on television networks worldwide.
1993
Late K. M. Mammen Mappillai, Chairman and Managing Director, was awarded the
Padmashri Award of National Recognition for his contribution to Indian
industry, becoming the only industrialist from
1995
The Company's turnover crossed 15 billion INR. MRF tyres gets selected for OEM fitment to be fitted onto Daewoo
Cielo. The Company was voted by the Far Eastern Economic Review as one of the 10
leading corporate groups in
1996
In the Company's Golden Jubilee year, turnover crossed the 20 billion INR
milestone. A factory dedicated entirely for the manufacture of radial tyres,
was set up at
1999
MRF was selected as the most ethical company in
2000
MRF launched the Smile campaign for the Indian
roads.
2001
MRF won the No. 1 award for Customer
Satisfaction by J.D. Power Asia Pacific.
2002
MRF did it again... For the
second year in succession, MRF won the No. 1 award for Customer Satisfaction by
J.D. Power Asia Pacific.
Statement of Standalone Unaudited Results for
the Quarter and Nine months ended 30th JUNE, 2012
(Rs. in Millions)
|
|
Quarter Ended |
Nine Months Ended |
|
|
PARTICULARS |
30.06.2012 |
31.03.2012 |
30.06.2012 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
PART I |
|
|
|
|
1 Income
from Operations (a) Gross Sales/Income
from Operations Less: Excise duty |
333489 32870 |
326485 27422 |
973616 86526 |
|
Net Sales/Income form
Operations (b) Other Operating Income |
300619 208 |
299063 217 |
887090 566 |
|
Total income from
operations ( net) |
300827 |
299280 |
887656 |
|
2 Expenses a) Cost of materials consumed b) Purchases of stock-in-trade c) Changes in inventories of finished goods, work-in-progress and
stock-in-trade d) Employee benefits expense e) Depreciation and amortisation expense f) Other Expenses |
211890 529 (4258) 13669 7766 46686 |
198973 647 11296 12629 7201 43153 |
618663 1819 9556 38099 21441 128874 |
|
Total Expenses |
276282 |
273899 |
818452 |
|
3 Profit
from Operations before Other Income, finance costs and exceptional items
(1-2) |
24545 |
25381 |
69204 |
|
4 Other Income 5 Profit
from Ordinary activities before finance costs and exceptional items (3+/ (-)
4) |
362 24907 |
526 25907 |
1281 70485 |
|
6 Finance costs 7 Profit
from Ordinary activities after finance costs but before exceptional items
(5+/(-)6) |
3933 20974 |
3853 22054 |
10967 59518 |
|
8 Exceptional Items |
|
- |
|
|
9 Profit
from Ordinary activities before tax ( 7 +/(-)8) 10 Tax Expense |
20974 6518 |
22054 7041 |
59518 18759 |
|
11 Net
Profit from ordinary activities after tax ( 9-10) 12 Extraordinary items |
14456 |
15013 |
40759 |
|
13 Net Profit for the period ( 11 +/(-) 12) |
14456 |
15013 |
40759 |
|
14 Paid-up Equity Share Capital (Face value of Rs.10/- each) 15 Paid-up Debt Capital of the Company * 16 Reserve
excluding Revaluation Reserves as per balance sheet of previous accounting 16 year 17 Debenture Redemption Reserve(Cumulative) 18 Earnings Per Share (Face value Rs.10/- each) |
424 70000 - 3953 |
424 70000 - 3234 |
424 70000 - 3953 |
|
Basic and diluted EPS (Rs.
Per Share) |
340.86 |
353.98 |
961.03 |
|
Select Information for the Quarter and Nine months
ended 30th JUNE, 2012 |
|||
|
PARTICULARS |
Quarter Ended |
Nine Months Ended |
|
|
|
30.06.2012 |
31.03.2012 |
30.06.2012 |
|
PART 2 |
|
|
|
|
A PARTICULARS OF SHAREHOLDING |
|
|
|
|
1)Public Shareholding -
No. of Shares |
3087525 |
3097504 |
3087525 |
|
% of
Shareholding |
72.80% |
73.03% |
72.80% |
|
2 Promoters and promoter
group Shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- No. of Shares |
13550 |
13550 |
13550 |
|
- (As a % of the total
shareholding of promoter and promoter group) |
1.17% |
1.18% |
1.17% |
|
- (As a % of the total share
capital of the Company) |
0.32% |
0.32% |
0.32% |
|
b) Non-encumbered |
|
|
|
|
- No. of Shares |
1140068 |
1130089 |
1140068 |
|
- (As a % of the total
shareholding of promoter and promoter group) |
98.83% |
98.82% |
98.83% |
|
- (As a % of the total
share capital of the Company) |
26.88% |
26.65% |
26.88% |
|
|
Particulars |
3 months ended 30.06.2012 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
2 |
|
|
Disposed of during the quarter |
2 |
|
|
Remaining unresolved at the end of the
quarter |
Nil |
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. 55.64 |
|
|
1 |
Rs. 87.31 |
|
Euro |
1 |
Rs. 68.81 |
INFORMATION DETAILS
|
Report Prepared
by : |
NID |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
73 |
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.