MIRA
INFORM REPORT
|
Report Date : |
28.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
ESTER INDUSTRIES LIMITED (During 1989-1990) |
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Formerly Known
As : |
ESTER INDIA LIMITED |
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Registered
Office : |
Sohan Nagar, P.O. Charubeta, Khatima, Dist. Udham Singh Nagar,
Uttarakhand- 262308 |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
04.02.1985 |
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Com. Reg. No.: |
20-015063 |
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Capital
Investment / Paid-up Capital : |
Rs. 314.469 Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L24111UR1985PLC015063 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELE02870A |
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PAN No.: [Permanent Account No.] |
AAACE0119K |
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Legal Form : |
A Public Limited Liability Company.
The company’s shares are listed on the Stock Exchanges |
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Line of Business
: |
Manufacturer of Polyester. |
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No. of Employees
: |
1500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 11120000 |
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|
Status : |
Satisfactory |
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Payment
Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are to be
usually correct. The company can be considered good 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered
Office / Works : |
Sohan Nagar, P.O. Charubeta, Khatima, District Udham Singh Nagar,
Uttarakhand– 262 308, India |
|
Tel. No.: |
91-5943-250153-57 |
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Fax No.: |
91-5943-255158 |
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E-Mail : |
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Website : |
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Head Office : |
DLF Building No.8, Tower-A, 2nd Floor, DLF City, Phase-II,
Sector-25, Gurgaon-122002, Haryana, India |
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Tel. No.: |
91-124-4572100 –
30 |
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Fax No.: |
91-124-4572199 |
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E-Mail : |
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Branch Office : |
B-009, Kemp Plaza, Near 5 D Restaurant, Mind Space, Chincholi Bandar
Road, Malad (West), Mumbai – 400064, Maharashtra, India |
|
Tel. No.: |
91-22-40034526 / 40034527 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. A. K.
Singhania |
|
Designation : |
Chairman |
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Name : |
Mr. P. S. Dasgupta |
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Designation : |
Director |
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Name : |
Mr. Pradeep Kumar Rustagi |
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Designation : |
Whole Time Director |
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|
Name : |
Mr. V. B. Haribhakti |
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Designation : |
Director |
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Name : |
Mr. Ashok Kumar Agarwal |
|
Designation : |
Whole Time Director |
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Name : |
Mr. A. K. Newatia |
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Designation : |
Executive Director |
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Name : |
Dr. Anand Chand Burman |
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Designation : |
Director |
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Name : |
Mr. M .S Ramachandran |
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Designation : |
Director |
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Name : |
Mr. Dinesh Kothari |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Girish Narang |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
Individuals / Hindu Undivided Family |
300 |
- |
|
Bodies Corporate |
9,172,650 |
14.58 |
|
Sub Total |
9,172,950 |
14.58 |
|
|
|
|
|
Individuals (Non-Residents Individuals / Foreign Individuals) |
300 |
- |
|
Bodies Corporate |
36,170,192 |
57.51 |
|
Sub Total |
36,170,492 |
57.51 |
|
Total shareholding of Promoter and Promoter Group (A) |
45,343,442 |
72.1 |
|
|
|
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|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
27,500 |
0.04 |
|
|
300 |
- |
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Sub Total |
62,600 |
0.1 |
|
(2) Non-Institutions |
|
|
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Bodies Corporate |
2,204,444 |
3.51 |
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|
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Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
11,805,743 |
18.77 |
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|
2,610,519 |
4.15 |
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Any Others (Specify) |
866,958 |
1.38 |
|
|
865,958 |
1.38 |
|
Trust & Foundation |
1,000 |
- |
|
Sub Total |
17,487,664 |
27.81 |
|
Total Public shareholding (B) |
17,550,264 |
27.9 |
|
Total (A)+(B) |
62,893,706 |
100 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
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Sub Total |
- |
- |
|
Total (A)+(B)+(C) |
62,893,706 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of Polyester. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Polyester Chips |
MT |
107000 ** |
38367 @ |
|
Polyester Film |
MT |
57000 # |
32116 |
|
Engineering Plastic |
MT |
14400 |
5784 |
* Delicensed
Products.
** Continuous
Process Plant with an installed capacity of 71,000 MT p.a. was installed in
November 2010
# Film plant with an
installed capacity of 30,000 MT p.a. was installed in January 2011.
@ Does not include 4851 MT of Polymer Melt.
GENERAL INFORMATION
|
No. of Employees : |
1500 (Approximately) |
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Bankers : |
·
Bank of India ·
Bank of Baroda ·
Union Bank of India ·
Canara Bank ·
State Bank of Bikaner and Jaipur |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory
Auditors |
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Name : |
S. R. Batliboi and Company Chartered Accountant |
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Address : |
Gurgaon, Haryana, India |
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Holding Company : |
Goldring Investments Corp |
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Associates : |
Saraswati Trading Company Limited |
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Subsidiaries : |
Ester International (USA) Limited (EIUL) |
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Enterprises
owned or significantly influenced by Key management personnel or their relatives
: |
·
Super Leasing Limited ·
Sriyam Impex Private Limited ·
Saraswati Trading Company Limited ·
Sri Lakshmi Investments Limited ·
Wilemina Finance Corporation ·
Polyplex Corporation Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.5/- each |
Rs. 750.000 Millions |
|
600000 |
Cumulative Convertible Preference Shares |
Rs.50/- each |
Rs. 30.000 Millions |
|
8000000 |
Redeemable Cumulative Convertible Preference Shares |
Rs.50/- each |
Rs. 400.000 Millions |
|
|
TOTAL |
|
Rs. 1180.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
62893706 |
Equity Shares |
Rs.5/- each |
Rs. 314.469
Millions |
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|
|
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Note:
Of the above:
i)
3,882,000 equity shares are issued on conversion of
cumulative convertible preference shares during the year 2003-04; and
ii)
7,391,306 equity shares are issued on conversion of
share warrants and fully convertible debentures during the year 2009-10.
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 |
314.469 |
314.469 |
277.512 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2466.540 |
1469.366 |
1133.326 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
2781.009 |
1783.835 |
1410.838 |
|
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LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
2236.909 |
543.857 |
461.972 |
|
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2] Unsecured Loans |
0.000 |
0.000 |
71.331 |
|
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TOTAL BORROWING |
2236.909 |
543.857 |
533.303 |
|
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DEFERRED TAX LIABILITIES |
285.406 |
180.132 |
157.203 |
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|
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TOTAL |
5303.324 |
2507.824 |
2101.344 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3632.330 |
1357.869 |
1402.306 |
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Capital work-in-progress |
164.638 |
366.118 |
4.486 |
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|
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INVESTMENT |
9.041 |
2.693 |
1.098 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
743.754
|
391.364
|
290.008
|
|
|
Sundry Debtors |
1210.331
|
511.516
|
383.214
|
|
|
Cash & Bank Balances |
182.285
|
181.775
|
79.895
|
|
|
Other Current Assets |
72.438
|
28.270
|
21.676
|
|
|
Loans & Advances |
222.260
|
182.195
|
197.417
|
|
Total
Current Assets |
2431.068
|
1295.120 |
972.210 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
326.989
|
148.536
|
98.456
|
|
|
Other Current Liabilities |
375.941
|
240.078
|
98.453
|
|
|
Provisions |
230.823
|
125.362
|
82.323
|
|
Total
Current Liabilities |
933.753
|
513.976 |
279.232 |
|
|
Net Current Assets |
1497.315
|
781.144
|
692.978
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.476 |
|
|
|
|
|
|
|
|
TOTAL |
5303.324 |
2507.824 |
2101.344 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6610.061 |
3953.706 |
3724.096 |
|
|
|
Other Income |
19.820 |
12.088 |
9.245 |
|
|
|
TOTAL (A) |
6629.881 |
3965.794 |
3733.341 |
|
|
|
|
|
|
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|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of goods for Resale |
2.146 |
14.528 |
1.521 |
|
|
|
Manufacturing Expenses |
3849.350 |
2838.867 |
2530.319 |
|
|
|
Personnel Expenses |
299.518 |
204.617 |
163.205 |
|
|
|
Administrative Expenses |
280.196 |
197.106 |
168.800 |
|
|
|
Selling Expenses |
199.941 |
123.473 |
144.373 |
|
|
|
Increase/(Decrease) in Finished Goods |
(233.715) |
(32.076) |
13.746 |
|
|
|
TOTAL (B) |
4397.436 |
3346.515 |
3021.964 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2232.445 |
619.279 |
711.377 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
119.255 |
64.322 |
96.345 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2113.190 |
554.957 |
615.032 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
179.258 |
141.532 |
134.168 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1933.932 |
413.425 |
480.864 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
639.255 |
134.769 |
146.525 |
|
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
1294.677 |
278.656 |
334.339 |
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
504.244 |
319.827 |
45.962 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
129.468 |
20.899 |
0.000 |
|
|
|
Interim Dividend to Equity Shares |
125.787 |
0.000 |
0.000 |
|
|
|
Transfer to Capital Redemption reserve |
0.000 |
0.000 |
27.976 |
|
|
|
Dividend on Preference Shares |
0.000 |
0.000 |
0.026 |
|
|
|
Proposed Dividend on Equity Shares |
125.788 |
62.894 |
27.751 |
|
|
|
Tax on Dividend |
41.298 |
10.446 |
4.721 |
|
|
BALANCE CARRIED
TO THE B/S |
1376.580 |
504.244 |
319.827 |
|
|
|
|
|
|
|
|
|
|
EXPORT VALUE |
2173.445 |
835.735 |
1033.752 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
617.593 |
966.003 |
126.709 |
|
|
|
Stores & Spares |
49.920 |
36.903 |
43.195 |
|
|
|
Capital Goods |
1345.482 |
257.171 |
119.873 |
|
|
TOTAL IMPORTS |
2012.995 |
1260.077 |
289.777 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
20.59 |
4.85 |
6.02 |
|
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 |
1698.160 |
1616.570 |
1745.730 |
1864.670 |
|
Total Expenditure |
1561.470 |
1498.980 |
1723.830 |
1842.080 |
|
PBIDT (Excl OI) |
136.690 |
117.590 |
21.900 |
22.590 |
|
Other Income |
1.400 |
1.920 |
4.110 |
40.080 |
|
Operating Profit |
138.090 |
119.510 |
26.010 |
62.660 |
|
Interest |
55.910 |
72.030 |
71.770 |
90.860 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
82.180 |
47.480 |
(45.760) |
(28.200) |
|
Depreciation |
65.570 |
66.780 |
67.890 |
65.110 |
|
Profit Before Tax |
16.610 |
(19.300) |
(113.650) |
(93.310) |
|
Tax |
3.950 |
(8.640) |
(34.810) |
(30.970) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
12.650 |
(10.660) |
(78.840) |
(62.340) |
|
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 |
12.650 |
(10.660) |
(78.840) |
(62.340) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
19.53
|
7.03 |
8.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
29.26
|
10.46 |
12.91 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
31.90
|
15.58 |
20.25 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.70
|
0.23 |
0.34 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.24
|
0.69 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.60
|
2.52 |
3.48 |
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. Constructions 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 |
Yes |
|
21. Market information |
------ |
|
22. Litigations that the firm / promoter involved |
------ |
|
23. Banking Details |
Yes |
|
24. Banking facility details |
Yes |
|
25. Conduct of the banking account |
------ |
|
26. Buyer visit details |
------ |
|
27. Financials, if provided |
Yes |
|
28. Incorporation details, if applicable |
Yes |
|
29. Last accounts filed at ROC |
Yes |
|
30. Major Shareholders, if available |
No |
OPERATIONS REVIEW
The Company has earned
Net Profit after Tax of Rs. 1294.676 Millions as compared to Rs. 278.654
Millions in the year 2009-10, an increase of 364.6% on account of significant
improvement in margins in Polyester Film business due to favourable demand
supply scenario. The sales including excise duty and other income during the
year are Rs. 7086.956 Millions as compared to Rs. 4228.669 Millions in the
previous year, an increase of 67.6% This increase is mainly due to increase in
per unit sales realization and better product mix in Polyester Film. The
production of Polyester Film was higher at 32116 MT as compared to 30122 MT
during 2009-10 on account of commissioning of new Polyester Film plant in
January 2011.
Sales (net of
Excise Duty) of Compounded and Unfilled Engineering Plastics increased from Rs.
656.945 Millions to Rs. 769.835 Millions, an increase of 17.2%. Sales value of
Polyester Chips increased 67.0%. Exports accounted for 32.7% of the net
turnover of the Company during the year.
On account of
fresh borrowings for the expansion projects and higher utilisation of working
capital facilities, interest and other financial expenses increased from Rs.
64.322 Millions to Rs. 119.255 Millions, an increase of 85.4%. As percentage to
Net Sales, interest and financial expenses were 1.80%.
As a result of
continuous focus on development of new products, the proportion of Value Added
products in the total sales quantities of Polyester Film increased from 17% to
23%.
Executive Board of
the Clean Development Mechanism (CDM) under United Nations Framework Convention
on Climate Change in its meeting dated 15th April 2011 has approved the
registration of a Biomass-based Thermal energy generation project of the
Company. Company would now be entitled to earn Certified Emissions Reductions
(CERs) with effect from November 2010.
MANAGEMENT DISCUSSION AND ANALYSIS
INDIAN ECONOMY
India’s GDP grew
at a healthy 8.6% in 2010-11 as compared to 8.0% in 2009-10 surpassing
estimates of an 8.5% growth at the start of fiscal 2010-11. This growth was
largely due to the significant growth in the agriculture sector at 5.4% (0.4%
in 2009-10); the services and industrial sectors maintained their previous year
growth momentum. The accelerated growth in the industrial sector in the first
half of 2010-11 was hit by instability in the capital goods segment in the
second half of 2010-11.
The confidence in
the Indian growth story was witnessed in the record FII inflows in the economy
and the revival in domestic investor confidence which helped the Indian stock
markets to regain the pre-crisis record levels. Net capital inflows increased
USD 13.7 bn to reach USD 36.7 bn; foreign exchange reserves grew USD 20 bn to
cross the USD 300 bn threshold – at about USD 305.49 bn.
Even as the
macroeconomic numbers displayed a strong performance, they were marked by
significant volatility evident not only in the numbers but also in the
sentiments primarily driven by the global clues and policy responses to cater
to inflation.
The inflation
witnessed a relentless rise during the first half of 2010 and remained in
double digits for almost five months of 2010. The uneven monsoon during 2009,
domestic supply side constraints coupled with the rising international prices
of food grains had pushed the prices of primary food articles, which eventually
drove inflation in the manufacturing goods as well as service sectors.
OPERATIONAL
PERFORMANCE
THE PRODUCT
PET is a versatile
plastic used to produce a wide spectrum of packaging material for beverages,
food, personal and home care, pharmaceuticals, as well as other consumer and
industrial products. PET is a strong, lightweight, non-reactive and inert
material. Accordingly PET film is ideal product to protect food, beverages and
pharmaceuticals against oxidation and aroma loss so as to achieve long shelf
life. Health-safety agencies around
the world have
approved PET as safe for use with foods and beverages. The PET Film industry
comprises of both thin films (50 micron and under) and thick films (above 50
microns)
GLOBAL MARKETS
Overview: Global BOPET Film industry is estimated to
grow at CAGR of about 8 - 9% over next five years which is higher than the CAGR
of about 7% p.a. during 2004-2009. Currently, Asian countries account for the largest
market share for BOPET films with 65 -70% of BOPET Films produced and consumed
within this region.
Growth and drivers: BOPET film
sector is expected to grow at about 8-9% per annum in the next five years
primarily on account of
·
Growth in new applications such as LCD’s, touch
screen panels, smart phones, solar panel back sheets and photovoltaic cells
·
Changes in demography and lifestyle in fast
developing and emerging economies
Ester is exploring
options to enter into this ‘High Growth High Margin’ segment of BOPET Films.
INDIAN MARKETS
Overview: India has an installed capacity of about
400,000 MTPA of Thin BOPET films and accounts for about 17% of the global
installed capacity. Over 65-70% of the India’s production is consumed
domestically while exports account for the balance. Continuous capacity
addition over the years strengthened India’s position in the global markets.
Domestic demand for Thin BOPET film is growing at a CAGR of about 15%. Ester is
engaged in the manufacture of Thin BOPET Films.
Growth and drivers: The growth in
India is driven by demographic and lifestyle changes (rising middle class
population), increasing investments in supermarkets, hypermarkets and organised
retail sector. This is resulting in
greater demand for
sophisticated and attractive high quality printed packaging. Government
Regulation to improve quality and safety of the packaged food products
continues to enhance demand for Thin BOPET Films.
India’s per capita
packaging consumption at 0.24 Kgs as compared to 0.80 kgs in the developed
economies (worldwide average of about 0.40 kgs) offers tremendous growth
opportunities. According to an industry body and Ernst and Young study on the
Indian food industry ‘Flavours of Incredible India – Opportunities in the Food
Industry’, (October 2009), investment
opportunities in the Indian food industry are set to grow by 42.5% by
2020. This is expected to accelerate the demand for BOPET films.
HIGHLIGHTS:
2010-11
SHOP FLOOR
·
Increased PET chip production by 19.5% from 36,177
tonnes in 2009-10 to 43,219 tonnes
·
Increased BOPET film production by 6.6% from 30,122
tonnes in 2009-10 to 32,116 tonnes
·
Increased metalised film production by 22.6% from
4,936 tonnes in 2009-10 to 6,051 tonnes
INNOVATION
·
Developed new Value Added products like High
Barrier Clear Films which offer excellent potential in terms of volume and
margins.
MARKET PLACE
·
Increased sales volume of BOPET films by 5.2% from
29,842 tonnes in 2009-10 to 31,379 tones
·
Increased the sales of valued-added films by 43%
·
Extended global presence across 25 nations; taking
the global footprint to 75 countries
PROJECT
·
Commissioned the PET Continuous Polymerisation (CP)
plant of 71,000 MTPA in November 2010
·
Commissioned an additional PET film line with a
capacity of 30,000 MTPA in January 2011
·
Expanded metalizing capacity by 7,200 MTPA in
November 2010
OVERVIEW
Ester is the
second largest Thin BOPET Film producer in India in terms of installed capacity.
The Company’s vertically integrated operations based out of Khatima,
Uttarakhand comprise of PET chips, Thin BOPET Films and Metalised Thin BOPET
Film manufacturing facilities.
Sold under brand
name ‘UmaPET’, Ester offers a diversified portfolio of Value Added plain and
metalised BOPET Films. The Company enjoys long healthy business relations with
marquee clients across India. Its global footprint extends over 75 countries
including the US, Europe and Latin America.
OUTLOOK FOR FUTURE
While performance
in 2010-11 has been strong due to operational and structural reasons, they
expect margins to come under pressure going forward. The recent ban on the use
of plastic films for domestic pan masala / tobacco product (“pan masala /
gutka”) packaging is likely to impact their business since 25-30% of polyester
films domestic demand emanated from this sector in India. The matter is
sub-judice in the Supreme Court of India and a decision is expected by the
second quarter 2011-12.
ENGINEERING
PLASTICS BUSINESS
THE PRODUCT
Engineering
Plastic is a group of Polymers comprising PBT, Nylon– 6, Nylon – 66, ABS and PC
compounded in about 200 different grades under the brand name ‘Estoplast’.
These find applications in automobiles, white goods, electrical and electronics
industry.
DOMESTIC MARKET
Overview: The Indian Engineering Plastics compounds
business has a capacity of about 80,000 MT and is growing at 20% per annum as
its growth is dovetailed to growth in automobile and electrical sectors. In the
automotive segment, the engineering plastic compounds are used to replace
metals and glass components. This enables reduction in the vehicle weight and
improvement in fuel efficiency apart from being more cost effective.
Substitution of traditional goods with plastics: As per ICIS
(market intelligence firm for global chemical and energy industries), currently
per capita usage of plastics is 5.5 kg in India compared with the global
average of 12 kg. However, with plastics increasingly replacing traditional
materials such as metal and glass in many applications, the Indian
plastic-compound business is expected to see significant growth in the years
ahead.
Automobile segment: The Indian
automobile industry is geared to double the passenger car manufacturing capacity
by 2015. According to a study by global consultancy firm Ernst and Young, the
Indian market will clock the fastest compound annual growth rate (CAGR) between
2009 and 2020, more than double of China. Besides, the auto-components
industry, at USD 26 billion will jump to USD 103-113 billion in the next ten
years, as per the report.
Electrical segment: Indian
electrical segment is estimated to grow at 18% annually. Growth in the sector is
coming from shift to energy efficient lighting products such as CFLs, FTLs and
LEDs duly supplemented by robust growth in construction. Demand for Electrical
Appliances / White Goods is expected to grow at about 15% due to change in
lifestyle and the growing disposable income.
PERFORMANCE
OVERVIEW
During the
financial year 2010-11, Engineering Plastics compounds and blends business
registered a top line growth of 17%. They enhanced their customer base in the automotive
and appliances segments through focused development efforts. The development
efforts were supported by addition of analytical equipment for advanced testing
such as Comparative Tracking Index and Surface and Volume Resistivity. With the
foundation laid, this is expected to yield a healthy sales growth of PC-ABS
compounds as well in 2011-12.
Following the
increase in crude prices, prices of base polymers also started hardening in the
later part of the year. Despite intense competition, Ester succeeded in passing
on part of the cost increase to the customers.
The overall
Engineering Plastics market in India is growing at a steady rate of 13-15%. The
largest user of Engineering Plastics is the automotive industry which accounts
for almost half of the consumption, with the 4-wheeler and 2-wheeler segments
growing at 25% and 10% respectively. Other major consumers include the
electrical and electronics appliances industries. Within the electrical
segment, the market for Energy Saving Lamps is growing at 20% and that for low
voltage switch gear products like MCB, ELCB and contactors at 15%.
FIXED ASSETS
- Land
(Freehold)
- Buildings
- Plant and
Machinery
- Furniture and
Fixtures
- Lease Hold
Improvements
- Office
Equipments
- Vehicles
Intangible Assets
:
- Software’s
STATEMENT OF STANDALONE AND CONSOLIDATED AUDITED RESULTS FOR THE YEAR
ENDED MARCH 31, 2012
(Rs. in millions)
|
Sr. No. |
Particular |
Three months ended |
Preceding Three months ended |
Current Year ended |
|
|
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
|
|
|
(Audited as explained in note 3 below) |
(Unaudited) |
(Unaudited) |
|
1. |
Net Sales/Income
from Operations |
1864.665 |
1745.730 |
6995.801 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
a) (Increase) / Decrease in Stock in Trade |
(82.263) |
(126.674) |
(247.486) |
|
|
b) Consumption of Raw Materials |
1474.256 |
1399.880 |
5183.323 |
|
|
c) Employees Cost |
66.491 |
64.344 |
248.220 |
|
|
d) Depreciation |
65.112 |
67.888 |
265.354 |
|
|
e) Loss / (Profit) on foreign Exchange Fluctuation (Net) |
(32.858) |
2.052 |
(31.424) |
|
|
f) Other Expenditure |
383.592 |
360.151 |
1458.934 |
|
|
g) Total |
1874.330 |
1767.641 |
6876.921 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
(9.665) |
(21.911) |
118.880 |
|
|
|
|
|
|
|
4. |
Other Income |
7.220 |
4.110 |
26.407 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
(2.445) |
(17.801) |
145.287 |
|
|
|
|
|
|
|
6. |
Interest |
90.861 |
95.851 |
354.948 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
(93.306) |
(113.652) |
(209.661) |
|
|
|
|
|
|
|
8. |
Exceptional Items |
--- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
(93.306) |
(113.652) |
(209.661) |
|
|
|
|
|
|
|
10. |
Tax
Expense |
|
|
|
|
|
a) Current tax |
0.000 |
0.000 |
0.000 |
|
|
b) Deferred tax |
(30.968) |
(34.815) |
(70.470) |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
(62.338) |
(78.837) |
(139.191) |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
(62.338) |
(78.837) |
(139.191) |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
314.469 |
314.469 |
314.469 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
(0.99) |
(1.25) |
(2.21) |
|
|
b) Basic and diluted EPS after extraordinary items |
(0.99) |
(1.25) |
(2.21) |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
17550264 |
17550264 |
17550264 |
|
|
- Percentage of Shareholding |
27.90% |
27.90% |
27.90% |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital of
the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
45343442 |
45343442 |
45343442 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
72.10% |
72.10% |
72.10% |
|
Particulars
|
3
Months ended on March 31, 2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
23 |
|
Disposed of during the quarter |
23 |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES:
- The above results for the Year ended March
31, 2012 have been reviewed by the Audit Committee and have been approved
by the Board of Directors at the meeting held on May 4, 2012.
- Previous year / previous period
figures have been regrouped / reclassified to confirm to current period
classification.
- Figures of last quarter are the
balancing figures between audited figures in respect of the full year
ended March 2012 and published year to date reviewed figures up to the
third quarter ended December 31,2011.
- Finance cost includes loss of Rs. 26.573
Millions for the quarter ended March'2012 and loss of Rs. 90.601 Millions
for the Year ended March'2012 (Rs. 8.385 Millions for the Year ended
March'2011) representing exchange gains/ losses arising on restatement of
foreign currency borrowings to the extent that they are regarded as an
adjustment to finance cost, in accordance with paragraph 4(e) of
Accounting Standard-16;'Borrowing Cost'.
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDING
MARCH 31, 2012
(Rs. in millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
|
31/12/2011 |
30/09/2011 |
31/12/2011 |
||
|
|
(Audited as explained in note 3 below) |
(Unaudited) |
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyester Chips
and Film |
1689.247 |
1585.306 |
6292.117 |
|
|
|
Engineering
Plastic |
175.418 |
160.424 |
703.684 |
|
|
|
Unallocated |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
|
|
Net sales/Income
From Operations |
1864.664 |
1745.730 |
6995.801 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyester Chips
and Film |
(137.086) |
141.967 |
408.332 |
|
|
|
Engineering
Plastic |
4.219 |
0.042 |
34.896 |
|
|
|
|
|
|
|
|
|
|
Total |
(132.867) |
142.009 |
443.229 |
|
|
|
|
|
|
|
|
|
|
Less :Interest |
90.861 |
95.851 |
354.948 |
|
|
|
Less : Other
un-allocable expenditure net of from Un-allocable
income |
(130.420) |
159.810 |
297.942 |
|
|
|
|
|
|
|
|
|
|
Total Profit
Before Tax |
(93.307) |
(113.652) |
(209.661) |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed (Segment assets–
Segment Liabilities). |
|
|
|
|
|
|
|
|
|
|
|
|
|
Polyester Chips
and Film |
4113.341 |
4286.284 |
4113.341 |
|
|
|
Engineering
Plastic |
304.009 |
350.854 |
304.009 |
|
|
|
Unallocated |
(1776.991) |
(1934.077) |
(1776.991) |
|
|
|
|
|
|
|
|
|
|
Total |
2640.359 |
2703.061 |
2640.359 |
STATEMENT OF ASSETS AND LIABILITIES
|
PARTICULARS |
31.03.2012 AUDITED |
|
Equity and
liabilities |
|
|
Shareholders'
fund |
|
|
Share capital |
314.469 |
|
Reserve &
surplus |
2325.890 |
|
Sub-total - Shareholders' funds |
2640.359 |
|
Non - current
liabilities |
|
|
Long term
borrowings |
1679.611 |
|
Deferred tax
liability (net) |
214.935 |
|
Long term
provisions |
39.272 |
|
Sub-total - Non-current liabilities |
1933.818 |
|
Current
liabilities |
|
|
Short term
borrowings |
694.628 |
|
Trade payables |
599.404 |
|
Other current
liabilities |
382.218 |
|
Short term
provisions |
20.792 |
|
Sub-total - Current liabilities |
1697.042 |
|
Total - Equity & Liabilities |
6271.219 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
|
|
Tangible assets |
3498.112 |
|
Intangible
assets |
6.353 |
|
Capital work in
progress |
171.934 |
|
Non-current
investment |
8.041 |
|
Long term loans
& advances |
153.401 |
|
Other
non-current assets |
5.719 |
|
Sub-total - Non-current Assets |
3843.560 |
|
Current assets |
|
|
Inventories |
1043.103 |
|
Trade
receivables |
842.065 |
|
Cash & bank
balances |
211.687 |
|
Short term loans
& advances |
292.444 |
|
Other current
assets |
38.360 |
|
Sub-total - Current Assets |
2427.659 |
|
Total – Assets |
6271.219 |
WEBSITE DETAILS
PROFILE
Subject an ISO 9001:2008,ISO 22000:2005,TS16949:2002
certified company, established in 1985, is a leading manufacturer and supplier
of polyester films and engineering plastic compounds. Ester’s corporate headquarter
is located in Gurgaon, Haryana while Ester’s manufacturing facility is located
at Khatima, in the state of Uttarakhand, India.
As a renowned and established manufacturer of polyester
Films marketed under the brand ‘UmaPET' and engineering plastics marketed under
the brand ‘Estoplast’, they are globally recognized as a reputed supplier of
premium range of products in industry.
With their state-of-the-art manufacturing plant, skillfully
managed operation and committed work force, they continuously strive to meet
their commitment towards total customer satisfaction. By offering high quality
and cost effective products, they have gained the recognition, trust and
support of their clients worldwide.
MANAGEMENT
ARVIND KUMAR SINGHANIA
Chairman
Arvind’s vision
and passion have been integral to Ester’s success, building the company from a
small start up to one of India’s leading, most recognized polyester film
manufacturing company. Arvind has been associated with the company since its
inception. He has 28 years of rich and varied operations experience including
production, supply chain, finance and people management. Under his tutelage,
Ester has undertaken and seen tremendous success with its various expansion and
modernization initiatives.
ASHOK KUMAR AGRAWAL
Business Head – Polyester Film
Ashok
serves as Executive Director and Business Head-Film of the Company. Ashok has
over 30 years of operational experience across production, planning and
control, supply chain, engineering processes, sales and marketing, quality and
people management. Under Ashok’s leadership Ester successfully built and
commissioned its film production line-2 and line-3. Ashok specializes in
operations, business planning and general management and has led several change
management initiatives within the polyester film business at Ester. Ashok
earned his bachelor's degree in Electrical Engineering from Jabalpur
University.
PRADEEP KUMAR RUSTAGI
Chief Financial
Officer
Pradeep
serves as Executive Director and Chief Financial Officer (CFO) of Ester and
oversees the finance and accounting department. Pradeep has 23 years experience
with leadership roles in financial planning, accounts, budgeting & MIS,
liaison with banks and financial institutions, statutory compliance and excise.
As CFO, Pradeep is responsible for Ester's financial operations and investor
relations. Pradeep joined Ester as a Management Trainee over 21 years ago.
Pradeep is a qualified Chartered Accountant from The Institute of Chartered
accountants of India.
PALASH AGGARWAL
Head HR
As
Head of Human Resources at Ester, Palash is responsible for driving
organizational development strategies that support the company’s global growth
through leadership building, talent management and various OD interventions
across the board. Palash has 19 years of rich experience managing human capital
in manufacturing, IT, and Software industries. He has been instrumental in
establishing people practices and a performance driven culture in many of his
past organizations. In addition to a Bachelor’s Degree in Science, Palash also
holds a Master’s Degree in Human Resource Management from Jiwaji University.
SUNIL KUMAR SONI
Chief Information Officer
As
Chief Information Officer, Sunil is responsible for shaping Ester's long-term
technology vision and driving innovation across the company. Sunil has more
than 25 years of rich work experience in the technology industry, out of which
the last ten years have been in senior management and leadership roles. He
comes with an excellent blend of technical, business and team management
know-how. He has previously managed various projects and deployments in the
areas of enterprise applications, strategic outsourcing, business processes,
infrastructure management and application development and maintenance. Sunil
skillfully blends technical expertise with creativity, persuasion and empathy
to drive people to result. Prior to joining Ester, Sunil was Senior
Vice-President at Polaris Software. Sunil holds a bachelor's degree in
Mechanical Engineering from Punjab Engineering College, Chandigarh and also has
a B.Sc. (Mathematics) Degree from Agra University.
UDIT BALUJA
Business Head- Engineering Plastics
Udit
heads the EP Business of Ester Industries Limited. He comes with a rich
experience of over 22 years in P&L Management, Strategic Planning,
Operations Management including manufacturing and supply chain, Sales &
Marketing, establishing systems and processes for maintaining high SSHE
(Security, Safety, Health and Environment) standards and leading large teams.
Udit started his career as a Management Trainee in the Explosives Division of
ICI India Limited, which went on to become a 100% subsidiary of Orica Ltd of
Australia consequent to ICI’s divestment of its global explosives business.
Before joining Ester, he has held many key positions across diverse functions
at Indian Explosives Limited. Udit is a chemical engineering graduate from the
Indian Institute of Technology, Kharagpur.
SANJAY T KULKARNI
Business Head- Specialty Polymer
Sanjay
heads the Specialty Polymer Business of Ester Industries Limited. Sanjay is a
Chemical Engineer from KREC (now recognized as NITK) by qualification and has
extensive experience of 32 years in Polyesters, Nylon & Engineering
Plastics. He has worked with reputed companies like Century Enka Limited, Pearl
Engineering Polymers, Futura Polymers in the past.
He
has expertise in manufacturing, R&D, Business Development and has
experience in entire range of Polysters viz. PET, PBT, PTT, PEN, PTN & PBN.
He has been the main inventor in 27 patent applications filed (out of which
about 20 have already been granted) in the USA, EU & India.
RAHUL BHATIA
Chief Marketing Officer
Rahul
Bhatia is Chief Marketing Officer at Ester. Rahul has a 19 year track record of
growing businesses and markets, inspiring large teams - managing projects,
change and risks.
Rahul’s
experience spans across several areas including electrical/electronic, power,
oil and gas and regulation. He has catered to both the government and private
sector and various industries like utilities, textiles, chemical,
pharmaceuticals, glass etc. Rahul also has experience in establishing systems
and processes for maintaining high standards of HSSE (Health, Safety, Security
and Environment) in the organization.
Before
joining Ester, Rahul had worked with the BG Group (British Gas), Gujarat Gas,
Schlumberger and Landis+Gyr.
After completing his Bachelor of Engineering (Instrumentation), from the
University of Poona, Rahul did his Masters in Business Administration
(Marketing and Finance) from Institute of Management Technology, Ghaziabad.
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. 57.21 |
|
|
1 |
Rs. 89.42 |
|
Euro |
1 |
Rs. 71.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
-- |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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.