1. Summary Information
|
|
|
Country |
|
|
Company Name |
TAMILNADU
PETROPRODUCTS LIMITED |
Principal Name 1 |
Mr. N Sundardevan |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. A C Muthiah |
|
|
|
Registration # |
18-010931 |
|
Street Address |
Manali Express
Highway, Manali, Chennai – 600068, Tamilnadu |
||
|
Established Date |
22.06.1984 |
SIC Code |
-- |
|
Telephone# |
91-44-25941501-10/25941350/60/70/80/90 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-44-25941139 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Linear Alkyl Benzene |
|
|
# of employees |
597 (Approximately) |
Product Name 2 |
-- |
|
Paid up capital |
Rs.899,714,740/- |
Product Name 3 |
-- |
|
Shareholders |
Shareholding of
Promoter and Promoter – 34.54% Public
shareholding – 65.46% |
Banking |
IDBI Bank
Limited |
|
Public Limited Corp. |
YES |
Business Period |
28 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Ba (49) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
Mauritius |
Certus
Investment and Trading Limited (CITL) |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,413,663,000 |
Current Liabilities |
1,630,616,000 |
|
Inventories |
992,375,000 |
Long-term Liabilities |
1,169,713,000 |
|
Fixed Assets |
3,465,190,000 |
Other Liabilities |
828,514,000 |
|
Deferred Assets |
212,363,000 |
Total Liabilities |
3,628,843,000 |
|
Invest& other Assets |
1,504,406,000 |
Retained Earnings |
3,059,439,000 |
|
|
|
Net Worth |
3,959,154,000 |
|
Total Assets |
7,587,997,000 |
Total Liab. & Equity |
7,587,997,000 |
|
Total Assets (Previous Year) |
8,033,404,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
10,761,570,000 |
Net Profit |
294,714,000 |
|
Sales(Previous yr) |
9,050,754,000 |
Net Profit(Prev.yr) |
107,695,000 |
MIRA
INFORM REPORT
|
Report Date : |
04.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
TAMILNADU PETROPRODUCTS LIMITED |
|
|
|
|
Registered
Office : |
Manali Express Highway, Manali, Chennai – 600068, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
22.06.1984 |
|
|
|
|
Com. Reg. No.: |
18-010931 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.899.715 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L23200TN1984PLC010931 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s Shares are Listed on
the Stock Exchange |
|
|
|
|
Line of Business
: |
Manufacturing of Linear Alkyl Benzene, Epichlorohydrin and Caustic
Soda. |
|
|
|
|
No. of Employees
: |
597 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 15000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as decent. Business is active. Payments
are reported to be usually correct and as per commitments. The company can be considered good 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 / Factory: |
Manali Express Highway, Manali, Chennai – 600068, Tamilnadu, India |
|
Tel. No.: |
91-44-25941501-10/25941350/60/70/80/90 |
|
Fax No.: |
91-44-25941139 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
“TPL House”, 3rd
Floor, No. 3, Cenotaph Road, Teynampet, Chennai - 600 018, Tamilnadu, India |
|
Tel. No.: |
91-44-24311035 |
|
Fax No.: |
91-44-24311033 |
|
|
|
|
Regional Office: |
C/o. SPIC
Limited, 1201, 12th Floor, 16, Vikram Tower, Rajendra Place, New Delhi - 110 008,
Tamilnadu, India |
|
Tel. No.: |
91-11-25868018 |
|
Fax No.: |
91-11-25868019 |
|
|
|
|
Branches: |
Located at ·
Delhi ·
Kanpur ·
Bhopal ·
Kolkata ·
Mumbai ·
Secunderabad ·
Chennai ·
Pondicherry ·
Coimbatore ·
Madurai |
/DIRECTORS
As on 31.03.2011
|
Name : |
Mr. N Sundardevan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. A C Muthiah |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. T K Arun |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R Karthikeyan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashwin C Muthiah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C Ramachandran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dhananjay N Mungale |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N R Krishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K U Mada |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V Ramani |
|
Designation : |
(Whole-time Director), Director and Chief Financial Officer |
|
|
|
|
Name : |
Mr. RM Muthukaruppan |
|
Designation : |
(Whole-time Director), Managing Director |
KEY EXECUTIVES
AUDIT COMMITTEE
|
Name : |
Mr. M B Ganesh |
|
Designation : |
Secretary |
|
|
|
|
AUDIT COMMITTEE |
|
|
Name : |
Mr. C Ramachandran |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. T K Arun |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. N R Krishnan |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. K U Mada |
|
Designation : |
Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
Category of Shareholders
|
No. of shares
|
Percentage (%)
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
15,234,375 |
16.93 |
|
|
15,843,751 |
17.61 |
|
|
31,078,126 |
34.54 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
31,078,126 |
34.54 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
15,800 |
0.02 |
|
|
13,025 |
0.01 |
|
|
4,459,729 |
4.96 |
|
|
4,488,554 |
4.99 |
|
|
|
|
|
|
8,061,750 |
8.96 |
|
|
|
|
|
|
24,962,204 |
27.74 |
|
|
14,150,283 |
15.73 |
|
|
7,230,557 |
8.04 |
|
|
1,314,833 |
1.46 |
|
|
3,744,591 |
4.16 |
|
|
1,511,325 |
1.68 |
|
|
22,739 |
0.03 |
|
|
9,474 |
0.01 |
|
|
627,595 |
0.70 |
|
|
54,404,794 |
60.47 |
|
Total Public shareholding (B) |
58,893,348 |
65.46 |
|
Total (A)+(B) |
89,971,474 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
89,971,474 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Linear Alkyl Benzene, Epichlorohydrin and Caustic
Soda. |
|
|
|
|
|
|
Products : |
Item Code No. |
Product Description |
|
|
38171001 |
Linear Alkyl Benzene |
|
|
29103000 |
Epichlorohydrin |
|
|
281512 |
Caustic Soda |
PRODUCTION STATUS 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Linear Alkyl Benzene |
MT |
120000 |
98682 |
|
Heavy Normal Paraffin |
MT |
15000 |
4268 |
|
Heavy Alkylate |
MT |
NA |
3873 |
|
Epichlorohydrin |
MT |
10000 |
7989 |
|
Caustic Soda |
MT |
56100 |
48258 |
|
Chlorine |
MT |
40000 |
39183 |
|
Hydrochloric acid |
MT |
39600 |
29166 |
|
Ammonium Chloride |
MT |
21000 |
346.25 |
GENERAL INFORMATION
|
No. of Employees : |
597 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
·
IDBI Bank Limited ·
Axis Bank Limited ·
IndusInd Bank Limited ·
State Bank of India ·
State Bank of Bikaner and Jaipur ·
State Bank of Patiala ·
Federal Bank Limited |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs. in Millions)
|
|||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Old No. 37, New
No. 52, ASV N Ramana Towers, Venkatanarayana Road, T. Nagar, Chennai - 600
017, Tamilnadu, India |
|
|
|
|
Legal Advisor: |
|
|
Name : |
T. Raghavan |
|
Address : |
New No. 47, Old
No. 25, T.T.K. Road, Alwarpet, Chennai - 600 018, Tamilnadu, India |
|
|
|
|
Joint Venture: |
·
Gulf Petroproduct Company E.C. |
|
|
|
|
Promoters: |
·
Southern Petrochemical Industries Corporation
Limited ·
Tamilnadu Industrial Development Corporation
Limited |
|
|
|
|
Subsidiaries : |
·
Certus Investment and Trading Limited (CITL),
Mauritius ·
Certus Investment and Trading (S) Private Limited ·
Proteus Petrochemicals Private Limited (formerly
TPL India Singapore Private Limited). ·
SPIC Electric Power Corporation (Private) Limited |
|
|
|
|
Associates: |
·
Petro Araldite Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Millions |
|
|
|
|
|
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
89976899 |
Equity Shares |
Rs.10/- each |
Rs.899.769
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
89971474 |
Equity Shares |
Rs.10/- each |
Rs.899.715
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 |
899.715 |
899.715 |
899.715 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3059.439 |
2871.303 |
2818.250 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3959.154 |
3771.018 |
3717.965 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
941.609 |
1580.791 |
1295.314 |
|
|
2] Unsecured Loans |
228.104 |
234.424 |
217.279 |
|
|
TOTAL BORROWING |
1169.713 |
1815.215 |
1512.593 |
|
|
DEFERRED TAX LIABILITIES |
683.000 |
734.205 |
724.522 |
|
|
|
|
|
|
|
|
TOTAL |
5811.867 |
6320.438 |
5955.080 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3465.190 |
3812.501 |
3597.079 |
|
|
Capital work-in-progress |
82.351 |
70.595 |
93.836 |
|
|
|
|
|
|
|
|
INVESTMENT |
1422.055 |
1798.008 |
1798.008 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
FIXED ASSETS HELD FOR TRANSFER |
212.363 |
212.363 |
213.881 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
992.375
|
905.685 |
700.117 |
|
|
Sundry Debtors |
826.649
|
633.455 |
520.218 |
|
|
Cash & Bank Balances |
203.872
|
119.273 |
56.015 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
383.142
|
481.524 |
677.690 |
|
Total
Current Assets |
2406.038
|
2139.937 |
1954.040 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
611.398
|
320.863 |
190.855 |
|
|
Other Current Liabilities |
1019.218
|
1310.484 |
1482.967 |
|
|
Provisions |
145.514
|
81.619 |
27.942 |
|
Total
Current Liabilities |
1776.130
|
1712.966 |
1701.764 |
|
|
Net Current Assets |
629.908
|
426.971 |
252.276 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5811.867 |
6320.438 |
5955.080 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10761.570 |
9050.754 |
9378.663 |
|
|
|
Other Income |
107.373 |
89.570 |
172.185 |
|
|
|
TOTAL (A) |
10868.943 |
9140.324 |
9550.848 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other
Expenses |
10186.207 |
8485.956 |
8949.187 |
|
|
|
Exceptional Items |
(222.246) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
9963.961 |
8485.956 |
8949.187 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
904.982 |
654.368 |
601.661 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
231.318 |
212.928 |
256.776 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
673.664 |
441.440 |
344.885 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
379.855 |
308.192 |
325.813 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
293.809 |
133.248 |
19.072 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(0.905) |
25.553 |
(46.342) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
294.714 |
107.695 |
65.414 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
710.223 |
655.159 |
589.745 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend |
14.596 |
7.645 |
0.000 |
|
|
|
Tax on Dividend |
89.971 |
44.986 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
900.370 |
710.223 |
655.159 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
998.744 |
719.489 |
562.743 |
|
|
TOTAL EARNINGS |
998.744 |
719.489 |
562.743 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Intermediates |
1139.270 |
849.808 |
891.587 |
|
|
|
Raw Materials |
712.910 |
448.142 |
194.406 |
|
|
|
Capital Goods |
47.341 |
278.898 |
0.000 |
|
|
|
Traded Goods |
0.000 |
84.821 |
0.00 |
|
|
|
Stores & Spares |
37.803 |
73.601 |
45.157 |
|
|
TOTAL IMPORTS |
1937.324 |
1735.270 |
1131.150 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.28 |
1.20 |
0.73 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
3436.400 |
3402.700 |
3201.200 |
3166.700 |
|
Total Expenditure |
3248.200 |
3283.500 |
3054.400 |
3061.300 |
|
PBIDT (Excl OI) |
188.200 |
119.200 |
146.800 |
105.400 |
|
Other Income |
13.000 |
54.000 |
11.400 |
23.800 |
|
Operating Profit |
201.200 |
173.200 |
158.200 |
129.200 |
|
Interest |
50.100 |
47.400 |
50.700 |
77.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
151.1000 |
125.800 |
107.500 |
52.000 |
|
Depreciation |
92.900 |
93.8000 |
93.000 |
92.200 |
|
Profit Before Tax |
58.200 |
32.000 |
14.500 |
(40.200) |
|
Tax |
18.400 |
(3.100) |
5.200 |
(15.400) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.00 |
|
Profit After Tax |
39.800 |
35.100 |
9.300 |
(24.800) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
39.800 |
35.100 |
9.300 |
(24.800) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.71
|
1.18 |
0.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.73
|
1.47 |
0.20 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.21
|
6.23 |
0.98 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.04 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.74
|
0.94 |
0.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35
|
1.25 |
1.15 |
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 one year |
Yes |
|
12) Profitability for last one year |
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 |
-- |
|
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 |
FINANCIAL REVIEW
The company’s debt equity ratio and Debt Service Coverage Ration DSCR as at 31st March, 2011 stands at 0.22 and 2.01 times respectively. The Company continues to maintain the confidence of lenders as short term working
capital requirements for enhanced additional production were fully met from the working capital lenders by first quarter of 2009-10. Further, improved rating of BBB determined by Credit Analysis and Research Limited (CARE) helped the company to negotiate interest rates with lenders. With repayment of long term debts, the company’s debt profile is skewed towards short term lending. With the upswing in interest rates due to policy announcements of RBI, the interest rate saw upward swings from quarter to quarter during the financial year 2009-10. Despite these developments, the company by judiciously managing the working capital, could limit the interest cost with only a marginal increase. The cash chest built out of disinvestment of equity shares of Henkel India Limited augurs well for the company as it would help to leverage the availing of working capital limits during 2011-12.
OPERATIONAL
HIGHLIGHTS
Linear Alkyl Benzene
(LAB)
The overall performance of LAB operations has surpassed that of the previous year with increased production and sales. The installation of new molecular sieves in the n-paraffin unit in January 2010 has yielded results improving the normal paraffin plant capacity utilization. LAB production during the year was higher at 98,682 MT.
The steady increase in crude prices during the year has not affected the performance much. The Company still derives energy conservation benefits year after year through advanced process controls and other stringent measures. During the year, the Company has taken up revamp of the pre-fractionation unit, to be followed by the
revamp of the balance section of the n-paraffin unit. This will help to increase further the n-paraffin capacity in the
years to come. New markets are being identified for increasing the sales volume.
Among the Indian Companies, the Company continued to be the leader in meeting the domestic supplies of LAB to leading international detergent manufacturers like Henkel AG and Co., KGaA, Germany and Procter and Gamble.
Epichlorohydrin (ECH)
The performance of ECH plant was profitable with improved production and sales. The capacity utilization of the plant was 80%. The higher sales volume compared to the previous year was due to higher off-take in India. The margins improved in line with the price trend in international market. The international price trend seems to be moving north due to shut down of plants in Japan and reducedavailability of products from Russia. Margins could have been better but for the high price of propylene and cost of power. Although the low duty on imports continues to be a major deterrent, M/s. Petro Araldite Private Limited., the Joint Venture Company is relying on the Company for its ECH requirements.
Caustic Soda / Chlor
Alkali
The performance of the Chlor Alkali division, in terms of production and sales, was maintained in 2010-11 as well. Profitability was, however, greatly affected due to non-availability of industrial grade salt resulting in higher prices, power cuts /restrictions on usage of power by TNEB leading to higher reliance on captive power based on fuel oil with higher attendant costs. The increased cost of production could not be passed on to the consumer due to surplus supply and stiff competition.
SUBSIDIARIES
SPIC Electric Power
Corporation Private Limited. (SEPC)
Project related activities to develop the 525 MW Thermal Power plant at Tuticorin are fast progressing. The investor company, Trinity Infraventure Limited, has been infusing funds and has contributed 119.145 Millions so far. Tuticorin Port Trust (presently known as “VO Chidambaranar Port Trust”) have communicated to SEPC that the Ministry of Shipping, Government of India have approved the proposal of allocation of alternate land for the project. Action has been initiated to take possession of the land. Environmental clearance from the Ministry of Environment and Forests has been obtained for the project. SEPC filed a Petition during April 2010 before the Hon’ble Tamil Nadu Electricity Regulatory Commission (TNERC) seeking its direction to pass an order directing the Tamil Nadu Electricity Board (TNEB) to act in accordance with the terms contained in the already concluded PPA (Power Purchase Agreement) with SEPC. Hearing is over and final orders are reserved in the matter. SEPC has filed an application for financial assistance which is under consideration.
Certus Investment and
Trading Limited., and its wholly owned
Subsidiaries
With the objective of setting up LAB and NP projects in regions with encouraging demand potential viz., Middle
East and South East Asia, your Company established M/s. Certus Investment and Trading Limited. (CITL) Mauritius as a Wholly Owned Subsidiary Company (WOS) of TPL to serve as a Special Purpose Vehicle (SPV)
M/s CITL in partnership with M/s. Saudi Offset Limited Partnership (SOLP) established a Company viz., M/s Gulf Petroproduct Company EC (GPC) to set up a LAB project in the Middle East
Pre-project activities for setting up the LAB unit are in the final stage. Steps are afoot to enter into a firm feedstock
supply agreement with a Qatar based supplier who proposes to supply the feedstock, n-paraffin, from its gas to liquid plant. The gas to liquid plant is in the final stage of completion. The project will pick up momentum once the feedstock supply agreement is firmed up.
Proteus
Petrochemicals Private Limited.
CITL has set up a subsidiary, M/s.Proteus Petrochemicals Private Limited., as the Project Company for setting up a Normal Paraffin Project in Singapore. The proposal is to establish a green-field Normal Paraffin (NP) project plant along with associated utilities and off-sites. The plant capacity is 125000 MTs per annum. CITL has proposed to invest 28% of the equity with the balance equity contribution being met by a foreign Investor and the Singapore Economic Development Board.
During the year under review, M/s.Proteus Petrochemicals Private Limited has recorded significant progress in its project activities. The Basic Engineering Agreement with UOP has been signed and the kick off meeting took place during December 2010. LOI on a lump sum fixed price basis was given to Mitsubishi Kakoki Kaisha Limited. (a subsidiary of Mitsubishi Heavy Industries) for Engineering, Procurement and Design with completion and process guarantees. A definitive agreement is expected to be signed by July 2011. Financial closure is expected by May 2011 and commencement of commercial production by November 2012.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
Tamilnadu Petroproducts Limited (TPL) is manufacturing and marketing Petrochemicals viz. Linear Alkyl Benzene (LAB), Epichlorohydrin (ECH) and Chemical intermediates- Caustic Soda and Chlorine. These are basic products used as raw materials in industries involved in manufacture of detergents and cleaning agents, lubricants, epoxy resins, pharmaceuticals and textiles. Chlorine is also used in bleaching and water treatment applications.
LINEAR ALKYL BENZENE
(LAB)
LAB is the leading surfactant used in the formulation of synthetic detergents. LAB business in the country continues to be competitive due to adequacy of internal supply and continuous increase in imports. However, the LAB market has witnessed some reasonable increase in demand due to the improved consumption pattern of detergents. The fact of the prices of alternatives for LAB like detergent alcohols ruling high, has made them unviable for detergent formulations. This is a positive sign for the growth of demand for LAB.
The instability in the Middle East countries has created a spurt in crude oil prices and a consequential increase of
raw material prices for LAB. They are able to sustain their business mainly because of the methodology of product pricing being linked to raw material prices. They have been trying to reduce their input costs continuously by innovative supply chain management.
EPICHLOROHYDRIN (ECH)
ECH is a speciality petrochemical used in the Resin industry for manufacture of corrosion prevention products, in the pharma industry and in speciality applications in certain industries like Aircraft production, Wind electric generators, Electronic PCB manufacturing etc. The Company is the only manufacturer of ECH in India. The demand for this product from major consumers, namely Resin manufacturers (both liquid and solid resins and formulations for specialized end use), remained steady throughout the year. Continued awareness of corrosion prevention, greater stress on infrastructural development and life style changes in the country, at large have accounted for the increase in demand. The capacity of the plant being less as compared to the domestic demand of ECH has led to import of this key raw material from countries like China, Europe and Russia.
The anomaly of inverted duty structure on final products still continues despite persistent representations to the Government. The inverted duty structure facilitates consumers to import the end product for their speciality manufacturing at competitive prices rather than sourcing ECH indigenously. The price of the key raw material for
the manufacture of ECH, namely propylene, has been moving in tandem with crude prices as propylene is a derivate of crude. Hence there had been a lead and lag in product pricing in respect of ECH.
Supply of ECH to M/s. Petro Araldite Private Limited, the joint venture company, continued through out the year.
CAUSTIC SODA / CHLOR
ALKALI
Caustic Soda is mainly used in the Textile Industry, Soaps and Detergents Industry, Aluminium Smelting, Paper and Pulp Industry. The over-supply situation of caustic soda in the country has exercised an adverse pressure on finished goods pricing contributing to negative margins. Depressed market conditions that prevailed during a major part of the year caused a loss in this business.
The Caustic Chlor industry in India accounts for almost 70% of total production of basic chemicals in India. The
Company’s production for the period, April’10 to March’11, showed a marginal growth of 1.81% as compared to the corresponding period of earlier year. The growth in demand of this sector till Dec’10, according to Ministry of Chemicals and Petrochemicals was 1.43%. The sluggish growth in demand and excess availability of product has driven the price southwards. Overall demand for Caustic soda is crucially linked to the end-use segments and direct import by such end-users is also a key factor for depressed domestic pricing. Hence, as and when the international prices stabilize, the domestic prices are expected to show a sympathetic trend.
The continued consumption of Chlorine – the Co-product in the manufacture of Caustic Soda - at their Epichlorohydrin plant and by an adjacent industry in Manali is a welcome feature for the Company.
OUTLOOK
Linear Alkyl Benzene
The growing Indian economy drives the consumption of LAB and hence the outlook for LAB remains positive in 2010-11 as well. Though elevated crude prices may pose a constraint in obtaining higher LAB sale figures, the higher disposable incomes of the population at large, should result in higher demand for lifestyle goods, housing detergents. The gradual increase in consumption of detergents ensures a sustainable positive growth for LAB business.
Epichlorohydrin
On balancing the threats, risks and concern with the opportunities for ECH business, the outlook for the coming year looks promising. The ability to place the entire production capacity of the company to PAPL and in the domestic market would provide the platform for better performance in the coming year. With the sourcing of raw
materials having been streamlined within India assuring sustained supplies, the concern for raw materials has been met with. Higher plant performance assured by higher availability of equipment would result in higher production in the coming year. With increase in production, higher price for ECH, the outlook is purple and would shore up the income of the Company. With the infrastructure sector and Auto market showing impressive growth, the rising demand within India is certainly a positive factor to fetch a higher price for ECH.
Caustic Soda / Chlor
Alkali
With the hardening trend of prices of Caustic lye, chlorine and associated products, the outlook looks better compared to last year. The emerging requirement of PAT (Perform, Achieve and Trade introduced by BEE) compels reduction of specific power consumption which would be, expectedly, the lowest ever in the history of the company.
The continued supply of Caustic lye and Chlorine to neighboring industries has given the company a greater marketing strength. Reliability of supplies being a key factor in such situations, the company has always utilized the available opportunities. The Company is also working on Coal based power plant as an alternative to the existing Fuel Oil based power to reduce power costs.
Overall, the coming year is expected to be better than the earlier year with a favourable market for the Company’s products and with the greater commitment of the Management and employees at all levels.
FINANCE
The improved operating results of the Company for the year ending 31st March 2010 enabled the Company to secure a higher credit rating of BBB for the current term in place of the lower BBB minus held earlier. The Company continues to enjoy the support of lenders by meeting all debt servicing obligations in time and keeping them informed regularly at quarterly intervals on the progress in business operations. All these enable the company to secure additional working capital limits to the extent of ` 450.000 Millions during the year. Apart from this, long term funds have also been mobilised to the tune of ` 96.800 Millions by securitising the rental receivables for the Corporate Office. The debt equity ratio as on 31st March 2011 stands at 0.21.
The Company, through disinvestment of its equity holdings in Henkel India Limited, was able to infuse funds into its operations and these funds were parked in working capital limits. The macro economic conditions and the policies pursued by the RBI pushed the interest cost northwards. However, the company had initiated various steps to contain the interest cost for the year leveraging its improved credit rating, better terms of interest negotiation with lenders, operating with structures of low interest cost products offered by Banks etc. A concern, however could be the volatility of rupee against dollar coupled with the increase in crude and its derivatives. The company is poised to improve its financial ratios significantly with overall targeted improvement in operations.
Contingent
Liabilities
(Rs.
In Millions)
|
Particular |
31.03.2011 |
|
Other claims not acknowledged as debts |
|
|
i) Sales tax The demands
relate to disallowance of claims for exemption of turnover arising on account
of stock transfers to branches and genuineness of declarations filed by
certain customers for availing concessional rate of tax. |
172.805 |
|
ii) Excise duty |
16.861 |
|
iii) Service Tax The above amounts
are based on demands raised which the company is contesting with the
concerned authorities. Outflows, if any, arising out of these claims would
depend on the outcome of the decision of the appellate authorities and the
company's rights for future appeals. No reimbursements are expected. |
6.785 |
|
iv) Electricity Tax Vide a
Government Order dated 23rd September 1996, the Tamilnadu Government exempted
specified industries permanently from payment of electricity tax on
consumption of self generated electrical energy under the Tamilnadu
Electricity (Taxation on Consumption) Act, 1962. The Tamilnadu
Tax on Consumption or Sale of Electricity Act, 2003 repealed the 1962 Act,
and withdrew the earlier exemption granted to specified industries. The
Company's appeal against the withdrawal of exemption was dismissed by the
Madras High Court. The Company filed a special leave petition before the
Supreme Court against the verdict. On 15th May 2007 the Supreme Court upheld
that the 2003 Act was not valid in respect of industries which were
permanently exempted from payment of tax. Consequent to
the Supreme Court judgment upholding the exemption, the Company (in June
2007) reversed the provision for electricity tax amounting to Rs. 87.877
Millions made since 2003-04. Subsequently,
the Government of Tamilnadu passed the Tamilnadu Tax on Consumption or Sale
of Electricity Amendment Act in November 2007 amending the 2003 Act to
invalidate the exemption granted with retrospective effect. In December 2007,
the Company filed a writ petition before the Madras High Court challenging
the Amendment Act. On 13th February 2008, the High Court passed an interim
order that in the event of non payment of tax on consumption for those
covered under exemption, TNEB is at liberty to make the demand but not
enforce it until further orders. Exemption from payment of electricity tax has been extended to
31.03.2011. |
113.800 |
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2012
|
|
|
|
Rs in Millions |
Rs in Millions |
Rs in Millions |
|
|
|
Particulars |
Quarter ended |
Quarter ended |
Year ended |
||
|
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
|||
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|||
|
1 |
Net Sales/Income from Operations |
3166.700 |
3169.300 |
13074.700 |
||
|
2 |
Other Operating Income |
- |
0.100 |
18.800 |
||
|
3 |
Total Income from
operations (1+2) |
3166.700 |
3169.400 |
13093.500 |
||
|
4 |
Expenditure |
|
|
|
||
|
|
(a) |
Cost Material consumed |
1669.700 |
1909.200 |
7610.400 |
|
|
|
(b) |
Purchase of traded goods |
- |
- |
18.100 |
|
|
|
© |
Changes in inventories of finished goods and
works-in-process |
69.100 |
(267.900) |
(276.500) |
|
|
|
(d) |
Employee benefits expense t |
87.000 |
67.000 |
295.200 |
|
|
|
(e) |
Depreciation |
92.200 |
93.100 |
371.900 |
|
|
|
(f ) |
Power and Fuel |
855.700 |
828.200 |
3136.800 |
|
|
|
(g) |
Other Expenditure |
379.800 |
464.100 |
1672.900 |
|
|
|
|
Total Expenses |
3153.500 |
3093.700 |
12828.800 |
|
|
5 |
|
Profit from Operations before Other Income, financial
costs and exceptional item (3-4) |
13.200 |
75.700 |
264.700 |
|
|
6 |
|
Other Income |
23.800 |
14.900 |
116.400 |
|
|
7 |
|
Profit before finance costs and exceptional item (5+6) |
37.000 |
90.600 |
381.100 |
|
|
8 |
Financial Costs |
77.200 |
76.100 |
316.600 |
||
|
9 |
Profit / (loss) after finance costs but before exceptional
item (7-8) |
(40.200) |
14.500 |
64.500 |
||
|
10 |
Exceptional Items |
- |
- |
- |
||
|
11 |
Profit / (loss) before tax (9+10) |
(40.200) |
14.500 |
64.500 |
||
|
12 |
Tax Expenses |
|
|
|
||
|
|
Current |
10.200 |
6.500 |
39.100 |
||
|
|
Deferred |
(25.600) |
(1.300) |
(34.000) |
||
|
13 |
Net Profit / (loss) after tax (11-12) |
(24.800) |
9.300 |
59.400 |
||
|
14 |
Share of profit /(loss) of Associates |
- |
- |
- |
||
|
15 |
Net Profit / (loss) after taxes and share of point /
(loss) of Associate (13+14) |
(24.800) |
9.300 |
59.400 |
||
|
16 |
Paid up equity share capital (Face value per share of Rs.10/- each) |
899.700 |
899.700 |
899.700 |
||
|
17 |
Reserves(excluding revaluation reserve |
- |
- |
2861.900 |
||
|
18 |
Earning Per Share (not annualised) Basic
and Diluted |
(0.28) |
0.10 |
0.66 |
||
|
19 |
Public Shareholding |
|
|
|
||
|
|
Number of Shares |
58893348 |
58893348 |
58893348 |
||
|
|
Percentage of Shareholding |
65.46 |
65.46 |
65.46 |
||
|
20 |
Promoters and Promoter group |
|
|
|
||
|
|
a) Pledged/Encumbered |
|
|
|
||
|
|
Number of shares |
15234375 |
15234375 |
15234375 |
||
|
|
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
49.02 |
49.02 |
49.02 |
||
|
|
Percentage of Shares (as a % of the total share capital of the
Company) |
16.93 |
16.93 |
16.93 |
||
|
|
b) Non-encumbered |
|
|
|
||
|
|
Number of shares |
15843751 |
15843751 |
15843751 |
||
|
|
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
50.98 |
50.98 |
50.98 |
||
|
|
Percentage of Shares (as a % of the total share capital of the
Company) |
17.61 |
17.61 |
17.61 |
||
|
Particulars |
3 months ended 31.03.2012 |
|
INVESTOR COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
4 |
|
Disposed of during the quarter |
Nil |
|
Remaining unresolved at the end of the quarter |
4 |
STATEMENT OF ASSETS
AND LIABILITIES
|
|
PARTICULAR |
31.03.2012 |
|
I |
Equity and
Liabilities |
|
|
|
1) Shareholders
Funds |
|
|
|
a) Share Capital |
899.700 |
|
|
b) Reserves and Surplus |
3064.600 |
|
|
Sub-total-Shareholders'
funds |
3964.300 |
|
|
|
|
|
|
2) Non – Current
Liabilities |
|
|
|
a) Long term Borrowing |
5227.200 |
|
|
b) Deferred tax liabilities (Net) |
649.000 |
|
|
c) Other Long term liabilities |
37.400 |
|
|
d) Long-term provisions |
29.500 |
|
|
Sub-total -
Non-current liabilities |
1243.100 |
|
|
|
|
|
|
3) Current Liabilities |
|
|
|
a) Short term borrowing |
1010.600 |
|
|
b) Trade payable |
1314.700 |
|
|
c) Other current liabilities |
223.900 |
|
|
d) Short term provision |
85.300 |
|
|
Total |
2634.500 |
|
|
|
|
|
|
Total |
7841.900 |
|
II |
Assets |
|
|
|
1) Non – Current
Assets |
|
|
|
a) Fixed assets |
3556.400 |
|
|
b)Expenditure during construction period pending allocation |
- |
|
|
c) Non – current Investment |
1377.800 |
|
|
d) Long term loans and advance |
215.400 |
|
|
Total |
5149.600 |
|
|
|
|
|
|
2) Current Assets |
|
|
|
a) Current Investment |
- |
|
|
b) Inventories |
1377.800 |
|
|
c) Trade receivables |
932.600 |
|
|
d) Cash and cash equivalents |
219.500 |
|
|
e) Short term loans and advance |
214.500 |
|
|
f) Other current assets |
3.000 |
|
|
Total |
2692.300 |
|
|
|
|
|
|
Total |
7841.900 |
Notes:
1 The Company operates in
only one segment, namely, Industrial Intermediate Chemicals.
2 The previous year's/periods'
figures have been regrouped to be in conformity with the Revised Schedule VI of
the Companies Act.
3 The Board of Directors
have recommended payment of 5% dividend on the paid up equity share capital (Re
0.50 per equity share) subject to approval of the shareholders.
4 The figures for the quarter ending 31st March 2012 are the balancing figures between the audited figures for the full financial year and the published year-to-date figures up to the third quarter of the current financial year.
5 The audited financial results were reviewed by the
Audit Committee and approved by the Board of Directors at their respective
meetings held on April 26, 2012.
The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 27th April, 2011.
Fixed Assets
·
Land
·
Buildings
·
Plant and machinery
·
Furniture and fixtures
·
Office and other equipment
·
Vehicles
AS PER WEBSITE DETAILS
COMPANY PROFILE
Subject a corporate star, was born in the year 1984 with the
objective of setting up a 50,000 MTA Linear Alkyl Benzene (LAB) project. TPL
has since imprinted winning hall marks successively over the years in Corporate
India and the Petrochemical
Industry in particular. Over more than a decade, TPL grew in
strength, thinking differently, harnessing the resources by laying a
fundamental platform for financial strength and responding to customers
innovatively by bringing in new products and services.
TPL has surged ahead with laurels for a challenging and
promising future, carrying the business commitment of the promoters, M/s. SPIC
Limited, who have diverse interest in fertilizers, petrochemicals and other
services and Tamilnadu Industrial Development Corporation Limited (TIDCO), a
State Govt. enterprise, with prime interest in promoting industries in the
State of Tamilnadu. SPIC its boasts of a turnover close to US $ 800 million and
has been the principal force in TPL achieving corporate leadership in detergent
business.
The LAB plant is located in the Manali Industrial Belt, 25
KMs away from Chennai City. The various infrastructure facility at Manali, the
advantages of a Metropolitan city, hi-tech communication interface and
cosmopolitan culture, synergise with the vision of promoters business plans.
TPL continues to March ahead excellent track record and its
achievements in a short time frame stand out distinctly, propelled by
continuous upgradation of technology, quality human resource and utmost customer
satisfaction.
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.54.81 |
|
|
1 |
Rs.86.03 |
|
Euro |
1 |
Rs.69.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
49 |
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.