MIRA
INFORM REPORT
|
Report Date : |
01.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN TEXTILES
LIMITED (w.e.f. 06.10.2006) VARDHMAN FABRICS
UNIT OF VARDHMAN TEXTILES LIMITED |
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Formerly Known
As : |
MAHAVIR SPINNING
MILLS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
08.10.1973 |
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Com. Reg. No.: |
16-003345 |
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Capital
Investment / Paid-up Capital : |
Rs. 636.519 Millions |
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CIN No.: [Company Identification
No.] |
L17111PB1973PLC003345 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JLDM03450G JLDM03167D JLDV01250E |
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PAN No.: [Permanent Account No.] |
AABCM4692E |
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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 and Seller
of Cotton Yarn, Acrylic Yarn, Polyester Sewing Threads, Steel, Yarn of
Synthetic Staple Fibre, Woven Fabric of Cotton and Alloy Steel Ingots. |
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No. of Employees
: |
26000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 80000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having fine track. There appears
some dip in the profitability in the company. However, Networth of the
company is good. Financial position of the company appears to be sound. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
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Rating |
LONG TERM RATING : CRISIL AA |
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Rating Explanation |
High degree of safety it carry very low credit risk |
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Date |
30.03.2012 |
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Rating Agency Name |
CRISIL |
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Rating |
SHORT TERM RATING A1+ |
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Rating Explanation |
Very strong degree of safety it carry lowest credit risk |
|
Date |
30.03.2012 |
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
LOCATIONS
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Registered/Corporate Office : |
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Tel. No.: |
91-161-2662543-47
/ 2670707 / 09/ 2228943-48 |
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Fax No.: |
91-161-2662542 /
2664541 / 2670503 / 2601040 / 2601048 / 2602710/ 2222616 |
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E-Mail : |
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Website : |
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Plants : |
·
arihand spinning mills
Industrial Area, Malerkotla – 148 023,
Sanazur, Punjab, India ·
anant spinning mills
New Industrial Area, Mandideep – 462 046,
Madhya Pradesh, India ·
ARISHT SPINNING MILLS, (DTA-I, II and 100% EOU), BADDI ·
AURO SPINNING MILLS, BADDI, Teh.
Nalagarh, District Solan–173205, Himachal Pradesh, India ·
AURO DYEING , BADDI, Teh. Nalagarh, District Solan – 173
205, Himachal Pradesh, India ·
AURO WEAVING MILLS, BADDI, Teh.
Nalagarh, District Solan–173205, Himachal Pradesh, India ·
AURO TEXTILES, BADDI, Teh. Nalagarh, District Solan – 173
205, Himachal Pradesh, India ·
MAHAVIR SPINNING MILLS LIMITED, (Gassed Mercerised Yarn Unit) Phagwara Road, Hoshiarpur – 146 001, India ·
MAHAVIR SPINNING MILLS LIMITED, Phagwara Road, Hoshiarpur – 146 001, India ·
MAHAVIR SPINNING MILLS LIMITED (Dyeing and
Finishing-Perundurai Unit) Plot No. E-13, and
H- 10, SIPCOT, Industrial Growth Centre, P. V. Palayam Perundurai – 638 052,
India ·
MAHAVIR SPINNING MILLS LIMITED (Sewing Thread, Unit-ll) Phase – VIII, Focal Point, Ludhiana – 141 123, Punjab, India ·
MAHAVIR SPINNING MILLS LIMITED (TEXTILE DIVISION) BADDI ·
VARDHMAN SPINNING AND GENERAL MILLS (UNIT-I and II), LUDHIANA ·
VARDHMAN SPINNING MILLS, BADDI ·
VARDHMAN FABRICS Budhni, District – Sahore ,Madhya Pradesh, India ·
VARDHMAN YARNS Satlapur, District Raisen Madhya Pradesh, India ·
VARDHMAN FABRICS (Power
Division) Bhdhani, District Sehore, Madhya Pradesh,
India ·
VARDHMAN YARNS
(Power Division) Satlapur, District Raisen, Madhya Pradesh,
India |
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Branch Office : |
·
P-22, 3rd Floor, Flat No.6,
C.I.T. Road, Scheme IV, Kolkata- 700 014, West Bengal, India ·
Chandigarh Road,
Ludhiana- 141 010, Punjab, India ·
314, Solaris II, Opp. L
and T Gate No.6, Saki Vihar Road, Andheri (East), Mumbai- 400 072,
Maharashtra, India ·
504, Dalamal House,
Nariman Point, Mumbai- 400 021, Maharashtra, India ·
309-310, Surya Kiran
Building, 19, Kasturba Gandhi Marg, New Delhi- 110 001, India ·
377-B, Muthuswami
Industrial Complex, Palladam Road, Tirupur- 638 604, India ·
1st
Floor, Palm Court, Opposite Management Development Institute, MG Road,
Sector - 16, Gurgaon - 122 001, Haryana, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Shri Paul
Oswal |
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Designation : |
Chairman and Managing Director |
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Qualification: |
M. Com. |
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Date of Appointment: |
01.11.2001 |
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Name : |
Mr. Darshan Lal
Sharma |
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Designation : |
Director |
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Name : |
Mr. Ashok Kumar Kundra |
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Designation : |
Director |
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Name : |
Mr. Prafull
Anubhai |
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Designation : |
Director |
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Date of Birth/Age : |
20.01.1938 |
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Qualification : |
B.Com, B.S.C. (Eco.) – |
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Date of Appointment : |
26.07.1980 |
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Name : |
Mr. Sachit Jain |
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Designation : |
Executive Director |
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Date of Birth/Age : |
08.07.1966 |
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Qualification: |
B. Tech., MBA |
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Date of
Appointment: |
30.03.2005 |
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Name : |
Mr. Subash
Khanchand Bijlani |
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Designation : |
Director |
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Name : |
Mr. S.
Padmanabhan |
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Designation : |
Nominee of IDBI |
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Name : |
Mr. Arun Kumar
Purwar |
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Designation : |
Director |
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Name : |
Mrs. Suchita Jain |
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Designation : |
Executive Director |
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Name : |
Mr. Neeraj Jain |
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Designation : |
Executive Director |
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Name : |
Mr. Shravan Talwar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Ms. Karan Kamal
Walia |
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Designation : |
Company Secretary |
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Name : |
Mr. Rajeev Thapar |
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Designation : |
CGM (Finance, Accounts and Taxation) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
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(1)
Indian |
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Individuals / Hindu Undivided
Family |
1461658 |
2.30 |
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Bodies Corporate |
37703660 |
59.23 |
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Sub
Total |
39165318 |
61.53 |
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(2)
Foreign |
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Total
shareholding of Promoter and Promoter Group (A) |
39165318 |
61.53 |
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(B)
Public Shareholding |
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(1)
Institutions |
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Mutual Funds / UTI |
12794068 |
20.10 |
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Financial Institutions / Banks |
80304 |
0.13 |
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Insurance Companies |
1465027 |
2.30 |
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Foreign Institutional
Investors |
589212 |
0.93 |
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Sub
Total |
14928611 |
23.45 |
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(2)
Non-Institutions |
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Bodies Corporate |
979082 |
1.54 |
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Individuals |
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Individual shareholders holding nominal share capital up
to Rs. 0.100 million |
4668056 |
7.33 |
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Individual shareholders
holding nominal share capital in excess of Rs. 0.100 million |
2184600 |
3.43 |
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Any
Others (Specify) |
1726212 |
2.71 |
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Trusts |
1628904 |
2.56 |
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Non Resident Indians |
97308 |
0.15 |
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Sub
Total |
9557950 |
15.02 |
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Total
Public shareholding (B) |
24486561 |
38.47 |
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Total
(A)+(B) |
63651879 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts have
been issued |
-- |
-- |
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|
-- |
-- |
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|
-- |
-- |
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|
-- |
-- |
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Total (A)+(B)+(C) |
63651879 |
-- |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Seller
of Cotton Yarn, Acrylic Yarn, Polyester Sewing Threads, Steel, Yarn of
Synthetic Staple Fibre, Woven Fabric of Cotton and Alloy Steel Ingots. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Spindles |
No |
747936 |
-- |
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Looms |
No |
900 |
-- |
|
Rotors |
No |
3768 |
-- |
|
Steel Ingots/Billets |
MT |
-- |
64581 |
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Rolled Products |
MT |
-- |
57060 |
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Yarn |
MT |
-- |
130861 |
|
Fabric $ |
MN Mtrs |
-- |
114.08 |
|
Processed Fabric |
MN Mtrs |
-- |
74.44 |
Notes:
* including goods processed
by/for others on job basis and consumed for captive consumption
$ Including fabric transferred to Process House
GENERAL INFORMATION
|
No. of Employees : |
26000 (Approximately) |
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Bankers : |
· State Bank of Patiala · Punjab National Bank · State Bank of India · Allahabad Bank · Corporation Bank · ICICI Bank Limited · Standard Chartered Bank · Bank of India · State Bank of Hyderabad · State Bank of Mysore · Oriental Bank of Commerce ·
IDBI Bank Limited ·
Canara Bank ·
Axis Bank Limited · Exim Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S C Vasudeva and
Company, Chartered
Accountants |
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Address : |
New Delhi, India |
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Subsidiaries : |
·
VMT Spinning Company Limited ·
Vardhman Acrylics Limited ·
VTL Investments Limited ·
Vardhman Yarns and Threads Limited ·
Vardhman Special Steels Limited (upto 07.04.2011) ·
Vardhman Nisshinbo Garments Company Limited
(Formerly known as Vardhman Texgarments Limited) |
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Associates : |
·
Vardhman Textile Components Limited ·
Vardhman Spinning and General Mills Limited ·
Vardhman Special Steels Limited (w.e.f.
08.04.2011 |
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|
Enterprises over
which key Management Personnel and relative of such personnel is able to
exercise significant influence or control : |
·
Vardhman Holdings Limited ·
Vardhman Apparels Limited ·
Banarso Devi Oswal Public Charitable Trust ·
Sri Aurobindo Socio Economic and Management
Research Institute ·
Adinath Investment and Trading Company ·
Devakar Investment and Trading Company Private
Limited ·
Srestha Holdings Limited ·
Santon Finance and Investment Company Limited ·
Flamingo Finance and Investment Company Limited ·
Ramaniya Finance and Investment Company Limited ·
Marshall Investment and Trading Company (Private)
Limited ·
Pradeep Mercentile Company (Private) Limited ·
Plaza Trading Company (Private) Limited ·
Anklesh Investments (Private) Limited ·
Syracuse Investment and Trading Company (Private)
Limited ·
Mahavir Spinning Mills (Private) Limited
(Formerly known as Vardhman Textile Processors (Private) Limited) ·
Northern Trading Company |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90000000 |
Equity Shares |
Rs.10/- each |
Rs. 900.000 Millions |
|
10000000 |
Redeemable Cumulative Preference Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
Total |
|
Rs. 1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63651879 |
Equity Shares |
Rs.10/- each |
Rs. 636.519
Millions |
|
|
|
|
|
Notes:
Reconciliation of the
Number of shares and amount outstanding at the beginning and at the end of the
reporting period
Equity shares
|
|
31.03.2012 |
|
|
|
No. of Shares |
Rs. In Millions |
|
At the beginning of the reporting period |
63651879 |
636.519 |
|
Add: Issued during the reporting period |
-- |
-- |
|
Outstanding at the end of the reporting period |
63651879 |
636.519 |
Rights, preferences
and restrictions attached to equity shares
The company has one class of equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.
During the year ended March 31, 2012 the amount of per share dividend recognised as distributions to equity shareholders was Rs.4.50 per share (Previous Year: Rs.4.50).The rate of dividend for redeemable cumulative preference shares is decided by the board of directors as and when issued.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Shares held by
holding company or its ultimate holding company or subsidiaries or associates
of the holding company or the ultimate holding company in aggregate.
There is no holding or ultimate holding company of the company.
Detail of
shareholders holding more than 5% shares in the Company
|
Class of shares and
Name of shareholder Equity shares of
Rs.10/- each fully paid |
31.03.2012 |
|
|
No. of Shares (in Lacs) |
% shareholding |
|
|
Devakar Investment and Trading Company Private Limited |
55.41 |
8.70 |
|
Adinath Investment and Trading Company |
126.13 |
19.80 |
|
Vardhman Holdings Limited |
154.03 |
24.20 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
636.519 |
636.519 |
577.695 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
19323.658 |
18546.096 |
13980.801 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
19960.177 |
19182.615 |
14558.496 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
24028.865 |
26163.483 |
22267.028 |
|
|
2] Unsecured Loans |
356.765 |
662.975 |
3940.951 |
|
|
TOTAL BORROWING |
24385.630 |
26826.458 |
26207.979 |
|
|
DEFERRED TAX LIABILITIES |
2028.523 |
1968.053 |
1963.807 |
|
|
|
|
|
|
|
|
TOTAL |
46374.330 |
47977.126 |
42730.282 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
21951.513 |
21256.569 |
21823.871 |
|
|
Capital work-in-progress |
1819.122 |
1140.888 |
406.316 |
|
|
|
|
|
|
|
|
INVESTMENT |
5147.178 |
3526.478 |
2804.849 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
OTHER NON-CURRENT ASSETS |
0.204 |
0.267 |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
13152.309
|
15983.946
|
11074.593 |
|
|
Sundry Debtors |
5368.302
|
4895.760
|
3973.369 |
|
|
Cash & Bank Balances |
584.158
|
487.432
|
2220.701 |
|
|
Other Current Assets |
178.651
|
178.695
|
0.000 |
|
|
Loans & Advances |
3598.620
|
4844.880
|
3096.830 |
|
Total
Current Assets |
22882.040
|
26390.713
|
20365.493 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
836.821
|
832.063
|
543.198 |
|
|
Other Current Liabilities |
4180.532 |
3089.980
|
1939.695 |
|
|
Provisions |
408.374
|
415.746
|
187.354 |
|
Total
Current Liabilities |
5425.727
|
4337.789
|
2670.247 |
|
|
Net Current Assets |
17456.313
|
22052.924
|
17695.246 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
46374.330 |
47977.126 |
42730.282 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
39180.015 |
36068.116 |
27429.536 |
|
|
|
Other Income |
605.707 |
432.380 |
549.693 |
|
|
|
TOTAL (A) |
39785.722 |
36500.496 |
27979.229 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
21864.912 |
18148.548 |
|
|
|
|
Purchase of stock-in-trade |
448.641 |
556.274 |
|
|
|
|
Employee benefits expense |
2211.299 |
2079.274 |
|
|
|
|
Other expenses |
8458.267 |
8423.697 |
|
|
|
|
Changes in inventories of finished goods and work-in-progress and stock-in-trade |
1269.049 |
(2151.775) |
|
|
|
|
TOTAL (B) |
34252.168 |
27056.018 |
22032.902 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5533.554 |
9444.478 |
5946.327 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1732.227 |
1098.122 |
867.330 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3801.327 |
8346.356 |
5078.997 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2346.718 |
2260.236 |
2208.757 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1454.609 |
6086.120 |
2870.240 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
357.949 |
1389.071 |
732.610 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1096.660 |
4697.049 |
2137.630 |
|
|
|
|
|
|
|
|
|
|
Corporate
Dividend Tax Written Back |
13.800 |
12.344 |
19.515 |
|
|
|
|
|
|
|
|
|
|
Adjustment of
preceding year’s tax effect in respect of premium paid on redemption of
FCCB’s |
0.000 |
251.174 |
0.000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2438.800 |
1313.556 |
608.504 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1500.000 |
3000.000 |
1250.000 |
|
|
|
Proposed Dividend on Equity Shares |
286.400 |
286.433 |
173.309 |
|
|
|
Corporate Dividend Tax Thereon |
46.500 |
46.467 |
28.784 |
|
|
BALANCE CARRIED
TO THE B/S |
3066.400 |
2438.875 |
1313.556 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
16030.788 |
12182.627 |
7040.035 |
|
|
TOTAL EARNINGS |
16030.788 |
12182.627 |
7040.035 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1072.497 |
1447.661 |
1348.981 |
|
|
|
Stores & Spares |
426.394 |
418.539 |
346.618 |
|
|
|
Capital Goods |
1263.147 |
1249.822 |
713.403 |
|
|
TOTAL IMPORTS |
2762.038 |
3116.022 |
2409.002 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.23 |
78.06 |
37.00 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
|
|
|
1st
Quarter |
|
Net Sales |
|
9481.900 |
|
Total Expenditure |
|
7696.800 |
|
PBIDT (Excl OI) |
|
1785.100 |
|
Other Income |
|
90.900 |
|
Operating Profit |
|
1876.000 |
|
Interest |
|
500.600 |
|
Exceptional Items |
|
0.000 |
|
PBDT |
|
1375.40 |
|
Depreciation |
|
626.500 |
|
Profit Before Tax |
|
748.900 |
|
Tax |
|
200.000 |
|
Provisions and contingencies |
|
0.000 |
|
Profit After Tax |
|
548.900 |
|
Extraordinary Items |
|
0.000 |
|
Prior Period Expenses |
|
0.000 |
|
Other Adjustments |
|
0.000 |
|
Net Profit |
|
548.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.76
|
12.87
|
7.79 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.71
|
16.87
|
10.46 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.24
|
12.77
|
6.80 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.32
|
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.49
|
1.62
|
2.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.22
|
6.08
|
7.63 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
-- |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
BUSINESS REVIEW:
Economic Outlook
The global economy is struggling for revival of growth after experiencing weak performance in the second half of 2011 and first quarter of 2012. However, there are serious downsides risks emanating from the uncertainties in economic policies prescribed by EU and restrained fiscal expansionary policies by USA. The short fall in global demand attributed by tough economic conditions in developed countries has not been compensated by surge in domestic demand in emerging economies.
In such situation, the global economy is projected to grow at 3.5% in 2012 and 4.1% in 2013. In developed countries block, USA is projected to record 2% economic growth followed by 2.4% in 2013 whereas, EU may experience a mild recession in 2012 and output may shrink by 0.3% before growing by less than 1% in the following year. The emerging and developing economies are also expected to experience lower growth of 5.7% in 2012 against 6.2% in 2011 and may grow by 6% in 2013. China is projected to grow by 8.2% in 2012, which is lower as compared to years 2010 and 2011. India is also projected to grow by 6% and about 7% in 2012 and 2013 respectively. However, this growth projection is not unconditional. It is subject to major disruptions in world financial markets especially in EU, which can spill over to developing countries banking system also because of high leveraged banks and greater cross border exposure of banking system.
In addition to global pressures on Indian economic performance, structural problems related to infrastructure, lower productivity levels and lack of policy reforms are other major concern areas. Moreover, higher inflationary pressures are also resulting in tighter monetary policies thereby restricting the industrial growth in India.
Cotton
The global cotton price which is largely a function of global demand and supply of cotton has been influenced by factors other than actual user demand and overall supply of cotton in 2011-12. The Chinese policy of accumulating cotton for strategic reserves and occasional policy decisions of Indian Government in relation to export of cotton has caused much volatility in cotton prices. The Cotlook Index -A for the year 201112 was 102 US cents /lbs in comparison to 164 US cents/lbs in 2010-11.
The global cotton production is estimated at 27.16 million tons in 2011-12, which is expected to decline to 24.9 million tons in 2012-13 due to lower area under cotton cultivation in sync with moderation in global cotton prices to an extent. The global mill consumption of cotton is estimated at 22.7 million tons in 2011-12 and is projected to grow moderately in 2012-13.
Yarn
Financial year 2011-12 was a year rampant with nervousness and unpredictability, which was not a conducive environment for business. The ban on the exports of cotton yarn in January, 2011 seriously impacted the industry and there was accumulation of inventory till end of March, 2011. The Government announced its new policy on export of Cotton Yarn in first week of April, 2011 and yarn export was brought under Open General Licence. As a result, the yarn prices moved in a wide range for the first half of the year. Most of the textile mills, particularly which are predominantly spinning, suffered losses including losses incurred by the writing down of the stock of cotton and yarn held by the end of June, 2011. However, it was only in the second half that things showed some signs of stabilization.
All India yarn production was lower by an estimated 15% due to (i) Power crisis in the South (ii) Huge inventory losses as referred above resulting in severe shortage of working capital availability to some companies (iii) Acute labour shortage across India (iv) Sharp fall in yarn prices as compared to last year propelling voluntary cut in production.
However, this year production is expected to increase even though margins are expected to be on the lower side only. There is also a noticeable trend of increasing value addition in products. The removal of trade barriers with Bangladesh is yet to show any impact on the Indian Industry.
Overall the year is expected to be more stable due to expectation that cotton will be much less volatile than last year. Growth of the industry will hinge on recovery in the global economy although Indian demand is expected to increase at a relatively moderate rate.
Company's Future
Outlook
The expansion project of 2nd line of fabric processing in Budhni plant is expected to be completed by July end and ramp up of the capacity will continue for every subsequent month. It is expected that during 4th quarter, the Company will get full benefit of the expansion. Also, the weaving project of 200 looms shall see partial commissioning starting from August, 2012.
The depreciation of the rupee should help in absorbing the rising cost of power and labour to keep the industry competitive.
B) FINANCIAL ANALYSIS AND REVIEW OF OPERATIONS:
Production and Sales
Review:
During the year, the Company has registered Revenue from Operations of Rs.39180.000 Millions as compared to Rs.36068.100 Millions showing an increase of 8.63% over previous year. The exports of the Company increased from Rs.12182.600 Millions to Rs.16030.800 Millions, showing an increase of 31.59% over the previous year owing to enhanced production and better product/market penetration. The business wise performance is as under:-
Yarn:
The production of Yarn increased from 130,858 MT to 138,046 MT during the year 2011-12. The sales revenue of yarn increased from Rs.20362.700 Millions to Rs.24217.700 Millions during the year.
Fabric:
During the year, the production of fabric (grey and processed) was 187.12 million meter as compared to 189.52 million meter in the previous year. The sales revenue of the fabric (grey and processed) increased from Rs.10712.700 Millions to Rs.11998.100 Millions showing an increase of 11.25% over the previous year.
SUBSIDIARIES:
The Company has following subsidiary companies, the details of profitability of which are given below:-
VMT Spinning Company
Limited (VMT)
Business of this subsidiary of the Company which is a Joint Venture with Marubeni Corporation, Marubeni HongKong and South China Limited and Toho Tenax Limited of Japan slumped due to steep fall in cotton prices during the year. The Revenue from operations of the Company has increased to Rs.1445.100 Millions from Rs.1291.700 Millions in the last year. The Company incurred a net loss of Rs.18.700 Millions as against a net profit of Rs.146.600 Millions in the previous year. Out of the total present paid-up capital of Rs. 207.000 Millions, the Company holds 73.33%. The Board of Directors of VMT has recommended a dividend @ 5% i.e. Rs. 0.50 per equity share for the year 2011-12.
VTL Investments
Limited (VTL)
This 100% subsidiary of the Company is engaged with the business of investments in the shares etc. The earnings of the Company mainly comes from the dividend/interest earned on its investments and profits made on sale of investments. During the year, the Company has earned a net profit of Rs. 15.100 Millions.
Vardhman Acrylics
Limited (VAL)
Vardhman Acrylics Limited (VAL) is another subsidiary of the Company which is engaged in the business of manufacturing of Acrylic Fibre. Presently the Company holds 58.74% shares in this subsidiary. During the Financial Year 2011-12, VAL recorded Revenue from operations of Rs. 3901.400 Millions as against Rs. 3988.700 Millions, a fall of 2.19% over the previous year. The net profit for the year has decreased to Rs. 244.900 Millions from Rs. 376.400 Millions in the previous year.
Vardhman Yarns and
Threads Limited (VYTL)
This subsidiary of the Company, a Joint Venture with American and Efird, Global LLC (A and E), is engaged in the business of manufacturing and distribution of Threads. The Company has a joint venture partnership of 51:49 with A and E, which is the second largest global player in Threads manufacturing and distribution. During the ear, the Revenue from Operations were Rs. 4646.900 Millions as against Rs. 4276.500 Millions in the previous year registering an increase of 8.66%. The Net Profit for the year was Rs. 397.000 Millions as compared to Rs. 493.100 Millions during last year. The Board of Directors of this Company has recommended a dividend @ 23% i.e. Rs. 2.30 per equity share for the year 2011-12.
Vardhman Nisshinbo
Garments Company Limited (VNGL)
This subsidiary of the Company is a Joint Venture partnership in ratio of 51:49 with Nisshinbo Textiles Inc., Japan for manufacturing world class men's shirts. During the year, the Revenue from Operations of the Company was Rs. 74.300 Millions as compared to Rs. 0.100 Million in the previous year. The Company incurred a net loss of Rs. 42.400 Millions as against Rs.19.900 Millions in the previous year as its operations are still stabilizing.
CONTINGENT
LIABILITIES
(Rs. In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Claims not acknowledged as debts |
87.803 |
103.407 |
|
Bank Guarantees and Letters of Credit outstanding |
1658.171 |
1526.442 |
|
Bills discounted with banks |
828.988 |
822.102 |
Other monies for which the company is contingently liable
a) The Company has contested the additional demand in respect of Sales Tax, Excise Duty etc., amounting to Rs.61.366 Millions (Previous Year Rs.57.285 Millions). As against this a sum of Rs.20.074 Millions (Previous Year Rs.20.139 Millions) has been deposited under protest and stands included under the head "Advances and other recoverable in cash or in kind". The Company has filed an appeal with the Appellate Authorities and is advised that the demand is not in accordance with law. No provision, therefore, has been made in accounts in respect thereof.
b) The Company has contested the additional demand in respect of income tax amounting to Rs.481.900 Millions (previous Year Rs.340.000 Millions). Pending appeal with Appellate Authorities, provision of Rs.282.300 Millions (Previous Year Rs.200.400 Millions) has not been made in the books of account as the company is confident to get the desired relief.
c) The company had taken over the textile undertaking of Vardhman Holdings Limited by a scheme of Arrangement and De-merger. An injunction was obtained against the London Branch of the said textile undertaking for preventing disposal of assets upto the value of Pound Sterling Rs.0.299 Millions as a result of a court case pending in London for alleged non-fulfillment of an agreement of cotton purchase. The said matter had been decided against the textile undertaking and accordingly, Pound Sterling Rs.0.048 Millions lying in the bank account at London had been paid to the claimant pursuant to the Order of the Court. The said amount was written off in the books of the said undertaking by way of debit to the statement of Profit and Loss Account. No provision has been made for the balance decreed amount in view of the fact that the said undertaking was prevented by force majure in fulfilling its part of contract. The Company as successor to the textile undertaking is contesting this matter in Indian Courts and is confident that there would not be any further liability in this regard.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012
(Rs. In Millions)
|
Particulars |
Quarter ended
30th June, 2012 (Unaudited) |
|
Income |
|
|
a) Net Sales / Income from Operations |
9395.800 |
|
b) Other Operating Income |
86.100 |
|
Total Operating Income |
9481.900 |
|
Expenditure |
|
|
a) Cost of Materials Consumed |
5035.900 |
|
b) Purchase of Stock-In Trade |
36.800 |
|
c) Change in Inventories of Finished Goods, Work-in Progress and Stock -in- Trade |
(367.200) |
|
d) Employee Benefit Expenses |
597.000 |
|
e) Depreciation and Amortisation Expense |
626.500 |
|
f) Power & Fuel |
1094.700 |
|
g) Other Expenses |
1299.600 |
|
Total Expenditure |
8323.300 |
|
Profit / (Loss) From Operations before other Income Interest and Exceptional Items |
1158.600 |
|
Other Income |
66.900 |
|
Profit/(Loss) before Interest and Exceptional items |
1225.500 |
|
Interest |
476.600 |
|
Profit / (Loss) after interest before Exceptional items |
748.900 |
|
Exceptional Items |
-- |
|
Profit / (Loss) From Ordinary activities before Tax |
748.900 |
|
Tax Expenses |
200.000 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
548.900 |
|
Extraordinary Items |
-- |
|
Net Profit/(Loss) for the period |
548.900 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
636.500 |
|
Reserves (Excluding Revaluation Reserves) |
|
|
Public Share Holding |
|
|
Before
Extraordinary Items |
|
|
-Basic |
8.62 |
|
-Diluted |
8.62 |
|
After Extraordinary Items |
|
|
-Basic |
8.62 |
|
-Diluted |
8.62 |
|
PARTICULARS OF
SHARE HOLDING |
|
|
Public Share Holding |
|
|
- Number of Shares |
24,818,359 |
|
- Percentage of shareholding |
38.99% |
|
Promoters and
Promoter group shareholding |
|
|
a) Pledged / Encumbered |
|
|
- Number of Shares |
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
|
b) Non-encumbered |
|
|
- Number of Shares |
38,833,520 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100% |
|
- Percentage of Share (as a % of the total share capital of the company) |
61.01% |
|
INVESTORS
COMPLAINTS |
|
|
Pending at the beginning of the quarter |
-- |
|
Received during that quarter |
24 |
|
Disposed of during the quarter |
24 |
|
Pending unsolved at the end of the quarter |
-- |
Notes:
1. In view of the significant uncertainties associated with the derivative options (taken for hedging of foreign currency exposure against exports/imports), the ultimate outcome of which depends on future events which are not under the direct control of the company, the resultant gain/loss if any, on such open derivative options cannot be determined at this stage and has accordingly not been accounted for in the books of account.
2. Other Income comprises dividend received from subsidiary company.
3. Interest expense is net of interest income from deposits/bonds amounting to Rs.24.000 Millions for the quarter ended 30th June, 2012
4. Figures for previous periods have been recast/regrouped wherever necessary to make them comparable.
5. The Board of Directors has approved the above results in their meeting held on 25.07.2012 which have been reviewed by the Statutory Auditors in terms of Clause41 of the Listing Agreement.
SEGMENTWISE REVENUE RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
|
Quarter ended
30th June, 2012 (Unaudited) |
|
1. Segment Revenue |
|
|
|
Yarn |
|
8045.000 |
|
Fabric |
|
3148.000 |
|
Unallocated |
|
422.300 |
|
Total |
|
11615.300 |
|
Less: Inter Segment Revenue |
|
2219.500 |
|
Net Sales/Income from Operations |
|
9395.800 |
|
2. Segment Results [Profit / (Loss) before tax and interest from
each segment] |
|
|
|
Yarn |
|
815.300 |
|
Fabric |
|
346.600 |
|
Unallocated |
|
71.400 |
|
Total |
|
1233.300 |
|
Less: (i) Interest |
|
476.600 |
|
(ii) Net of Un-allocable expenditure/(Income) |
|
07.800 |
|
Profit after interest but before exceptional items & tax |
|
748.900 |
|
3. Capital Employed |
|
|
|
Yarn |
|
29316.400 |
|
Fabric |
|
9247.400 |
|
Unallocated |
|
7619.500 |
|
Capital work-in-progress |
|
2987.900 |
|
Total |
|
49171.200 |
FIXED ASSETS:
·
·
·
Buildings
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
·
Computer Software
·
Office Equipment
WEBSITE DETAILS
HISTORY
The industrial
city of Ludhiana, located in the fertile Malwa region of Central Punjab is
otherwise known as the "Manchester of India". Within the precincts of
this city is located the Corporate headquarters of the Vardhman Group, a household
name in Northern India. The Vardhman Group, born in 1965, under the
entrepreneurship of Late Lala Rattan Chand Oswal has today blossomed into one
of the largest Textile Business houses in India.
At its inception,
Vardhman had an installed capacity of 14,000 spindles, today; its capacity has
increased multifold to over 8 lacs spindles. In 1982 the Group entered the
sewing thread market in the country which was a forward integration of the
business. Today Vardhman Threads is the second largest producer of sewing
thread in India. In 1990, it undertook yet another diversification - this time
into the weaving business. The grey fabric weaving unit at Baddi (HP),
commissioned in 1990 with a capacity of 20,000 meters per day, has already made
its mark as a quality producer of Grey poplin, sheeting, shirting in the
domestic as well as foreign market. This was followed by entry into fabric
processing by setting up Auro Textiles at Baddi and Vardhman Fabric at Budhni,
Madhya Pradesh. Today the group has 900 shuttleless looms and has processing
capacity of 90mn meters fabrics/annum.
In the year 1999
the Group has added yet another feather to its cap with the setting up of
Vardhman Acrylics Limited, Bharuch (Gujarat) which is a joint venture in
Acrylic Fibre production undertaken with Marubeni and Exlan of Japan. The
company also has a strong presence in the markets of Japan, Hong Kong, Korea,
UK and EU in addition to the domestic market. Adherence to systems and a true
dedication to quality has resulted in obtaining the coveted ISO 9002/ ISO 14002
quality award which is the first in Textile industry in India and yet another
laurel to its credit.
PROFILE
Vardhman Group is
a leading textile conglomerate in India having a turnover of $700 mn. Spanning
over 24 manufacturing facilities in five states across India, the Group
business portfolio includes Yarn, Greige and Processed Fabric, Sewing Thread,
Acrylic Fibre and Alloy Steel.
Vardhman Group
manufacturing facilities include over 9,27,430 spindles, 55.5 tons per day yarn
and fibre dyeing, 900 shuttleless looms, 90 mn meters per annum processed
fabric, 33 tons per day sewing thread, 20000 metric tons per annum acrylic
fibre and 100,000 tons per annum special and alloy steel.
Vardhman has
evolved through history from a small beginning in 1965 into a modern textile
major under the dynamic leadership of its chairman, S.P.Oswal. His vision and
insight has given Vardhman an enviable position in the textile industry. Under
his leadership, Vardhman is efficiently using resources to innovate, diversify,
integrate and build its diverse operations into a dynamic modern enterprise.
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 prhibited 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.54.12 |
|
|
1 |
Rs. 87.08 |
|
Euro |
1 |
Rs.70.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.