MIRA INFORM REPORT

1. Summary Information

 

 

Country

INDIA

Company Name

HIMACHAL FUTURISTIC COMMUNICATIONS LIMITED

Principal Name 1

MR. MAHENDRA PRATAP SHUKLA

Status

MODERATE

Principal Name 2

MR. MAHENDRA NAHATA

 

 

Registration #

06-007466

Street Address

8, ELECTRONICS COMPLEX, CHAMBAGHAT, SOLAN – 173 213, HIMACHAL PRADESH

Established Date

11.05.1987

SIC Code

--

Telephone#

91-1792-230643/ 44/ 45

Business Style 1

MANUFACTURING

Fax #

91-1792-231902

Business Style 2

--

Homepage

http://www.hfcl.com

Product Name 1

TELECOM PRODUCTS

# of employees

973 (APPROXIMATELY)

Product Name 2

--

Paid up capital

Rs.2,044,377,000/-

Product Name 3

--

Shareholders

 

Banking

STATE BANK OF INDIA

Public Limited Corp.

YES

Business Period

25 YEARS

IPO

YES

International Ins.

--

Public Enterprise

YES

Rating

B (37)

Related Company

Relation

Country

Company Name

CEO

SUBSIDIARIES

--

HTL LIMITED

--

Note

--

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2012

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets
5,850,264,000

Current Liabilities
7,215,054,000

Inventories
321,745,000

Long-term Liabilities

3,142,863,000

Fixed Assets

872,392,000

Other Liabilities
22,089,000

Deferred Assets

0,000

Total Liabilities

10,380,006,000

Invest& other Assets

9,897,593,000

Retained Earnings

4,517,611,000

 

 

Net Worth

6,561,988,000

Total Assets

16,941,994,000

Total Liab. & Equity

16,941,994,000

 Total Assets

(Previous Year – 6 Months)

17,357,283,000

 

 

P/L Statement as of

31.03.2012

(Unit: Indian Rs.)

Sales

2,607,078,000

Net Profit

114,286,000

Sales (Previous Year – 6 Months)

864,147,000

Net Profit (Previous Year – 6 Months)

402,151,000

 

 

Report Date :

29.10.2012

 

IDENTIFICATION DETAILS

 

Name :

HIMACHAL FUTURISTIC COMMUNICATIONS LIMITED

 

 

Registered Office :

8, Electronics Complex, Chambaghat, Solan – 173 213, Himachal Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

11.05.1987

 

 

Com. Reg. No.:

06-007466

 

 

Capital Investment / Paid-up Capital :

Rs.2044.377 millions

 

 

CIN No.:

[Company Identification No.]

L64200HP1987PLC007466

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELH04057E

 

 

PAN No.:

[Permanent Account No.]

AAACH4041D

 

 

Legal Form :

Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing of telecom products, executing turnkey contracts and providing services relating thereto.

 

 

No. of Employees :

973 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (37)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 26248000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exists

 

 

Comments :

Subject is an established company having moderate track. There appears tremendous growth in its sales and services during 2012 but the profits have dipped.

 

There appears a huge external borrowing recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealings with some caution.

 

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

CARE

Rating

B (Long Term Bank Facilities)

Rating Explanation

High risk of default.

Date

26th October, 2012

 

Rating Agency Name

CARE

Rating

A4 (Short Term Bank Facilities)

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

26th October, 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

LOCATIONS

 

Registered Office/ Factory :

8, Electronics Complex, Chambaghat, Solan – 173 213, Himachal Pradesh, India

Tel. No.:

91-1792-230643/ 44/ 45

Fax No.:

91-1792-231902

E-Mail :

investor@hfcl.com

secretarial@hfcl.com

Website :

http://www.hfcl.com

 

 

Corporate Office/ Administrative Office/ Factory 2  :

8, Commercial Complex, Masjid Moth, Greater Kailash – II, New Delhi – 110 048, India

Tel. No.:

91-11-30882624/ 30882626/ 29216298/ 29222624

Fax No.:

91-11-30689013/ 29224448

 

 

Factory 3 (Optical Fibre Cable Plant) :

Cable Division, L 35-37, Industrial Area Phase – II, Verna Electronics City, Salcete, Goa - 403 722, India

Tel. No.:

91-832-6697000-08

91-832-6697021 (Direct)

Fax No.:

91-832-2783444

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. Mahendra Pratap Shukla

Designation :

Non Executive Chairman

 

 

Name :

Mr. Mahendra Nahata

Designation :

Managing Director

 

 

Name :

Mr. Arvind Kharabanda

Designation :

Director (Finance)

Date of Birth/ Age :

09.03.1947

Qualification :

Chartered Accountant

Expertise in specific functional areas :

Mr. Arvind Kharabanda has got over 37 years experience in managerial positions, project implementation and finance.

Date of Appointment :

30.10.2004

 

 

Name :

Dr. R.M. Kastia

Designation :

Director

Date of Birth/ Age :

10.10.1941

Qualification :

Ph.D., FBIM (London)

Expertise in specific functional areas :

Dr. Kastia has to his credit more than 49 years of business experience. Dr. Kastia has occupied various important positions in well known industries. He has in depth knowledge of manufacturing of telecom equipments.

Directorship in other Public Companies :

HTL Limited

Date of Appointment :

07.02.1996

 

 

Name :

Mr. Y.L. Agarwal

Designation :

Director

 

 

Name :

Mr. R.K. Bansal

Designation :

Nominee Director (IDBI) (up to 27.02.2012)

 

 

Name :

Mr. S.G. Nadkarni

Designation :

Nominee Director (IDBI) (w.e.f. 28.02.2012)

 

 

KEY EXECUTIVES

 

Name :

Mr. Manoj Baid

Designation :

Company Secretary

 

 

Employed throughout the year :

 

Name :

Mr. Y.S. Choudhary

Designation :

Chief Executive Officer

 

 

Employed for part of the year :

 

Name :

Mr. Prasad Dasika

Designation :

Dy. Chief Executive Officer

 

 

Name :

Mr. Madhukar Srivastava

Designation :

President

 

 

Name :

Mr. Dhananjay S. Ozarkar

Designation :

Senior Vice President

 

 

Name :

Mr. S.K. Wadhwa

Designation :

Vice President

 

 

Name :

Mr. Karan Bamba

Designation :

Vice President

 

 

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

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

638344

0.05

Bodies Corporate

478660870

38.63

Sub Total

479299214

38.68

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

479299214

38.68

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

411480

0.03

Financial Institutions / Banks

247508758

19.97

Insurance Companies

521000

0.04

Foreign Institutional Investors

9555641

0.77

Any Others (Specify)

1705

0.00

Foreign Bank

1705

0.00

Sub Total

257998584

20.82

(2) Non-Institutions

 

 

Bodies Corporate

240537895

19.41

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

163471551

13.19

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

96880509

7.82

Any Others (Specify)

911261

0.07

Trusts

137969

0.01

Overseas Corporate Bodies

43000

0.00

Clearing Members

730292

0.06

Sub Total

501801216

40.50

Total Public shareholding (B)

759799800

61.32

Total (A)+(B)

1239099014

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

(1) Promoter and Promoter Group

0

0.00

(2) Public

278180

0.00

Sub Total

278180

0.00

Total (A)+(B)+(C)

1239377194

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of telecom products, executing turnkey contracts and providing services relating thereto.

 

 

Products :

Item Code No. (ITC Code)

85.17

Product Description

Optical Line Terminal Equipment (OLTE)

Item Code No. (ITC Code)

85.25

Product Description

Microwave Communication/WLL Equipment

Item Code No. (ITC Code)

85.44

Product Description

Optical Fibre Cable

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Licensed Capacity *

Installed Capacity

Actual Production

OLTE terminals#

Nos.

N.A.

1200

--

STM ##

Nos.

N.A.

1200

--

Dense Wavelength Digital Multiplexer (DWDM)

Nos.

N.A.

150

--

Microwave communications equipments

Nos.

N.A.

1700

--

CorDECT (Infra/FWT)

Lines

N.A.

350000

--

CDMA (Infra/FWT)

Lines

N.A.

650000

--

Digital Satellite Phone Terminals (DSPT)

Nos.

N.A.

12000

--

Optical fiber cables @

Kms

N.A.

42483

7734

 

Notes

* As none of the Company’s products are covered under licensing requirements of the new Industrial Policy, the licenced capacity is being treated and disclosed as ‘N.A’ i.e. Not Applicable. Installed capacity is taken as certified by the management being a technical matter.

# The installed capacity for OLTE is 480 nos. of systems. It will be equivalent to 960 nos. for fully equipped terminals or 1440 nos. for a product mix of fully equipped terminals and regenerators.

## The installed capacity of STM/DXC is either 1200 nos. of STM-1 or 900 nos. of STM-16 or 225 nos. of DXC. @ The installed capacity of optical fibre cable is based on number of fibre in the cable and is calculated on 12/24 Fibre Multitube cable.

 

GENERAL INFORMATION

 

Customers :

v      Nokia Siemens Networks

v      Ericsson

v      Huawei

v      Alcatel-Lucent

v      Reliance Communications

v      Airtel

v      Aircel

v      Docomo

v      Idea

v      Videocon

v      BSNL

v      MTNL

v      BHEL

v      NTPC

v      Indian Oil

v      GSPC

v      Bharat Petroleum

v      ABB

v      Tata Power

v      D-Link

v      Reliance Energy

v      Larsent and Toubro

 

 

No. of Employees :

973 (Approximately)

 

 

Bankers :

v      State Bank of India

v      Oriental Bank of Commerce

v      Punjab National Bank

v      Bank of Baroda

v      Union Bank of India

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Term Loans from Banks and Financial Institutions

1311.655

1341.535

Funded Interest Term Loans (FITL)

857.554

955.536

SHORT TERM BORROWINGS

 

 

Loans Repayable on Demand

 

 

- From Banks

363.504

534.300

- Other loans and advances

0.000

0.123

Total

2532.713

2831.494

 

SECURED LONG TERM BORROWINGS

 

a) Term loan of Rs.791.043 millions (Previous year Rs.791.043 millions) from financial institution and Funded interest term loan of Rs.339.154 millions (Previous year Rs.450.022 millions) are secured on pari passu basis by way of first charge on all the immovable properties, both present and future, by way of equitable mortgage and first charge on the entire sales proceeds of the contracts covered under the aforesaid loan to be credited to the Escrow/designated account.

b) Term loan of Rs.233.541 millions (Previous year Rs.233.541 millions) from a bank, Working capital term loan of Rs.182.010 millions (Previous year Rs.182.010 millions) and Funded interest term loan of Rs.310.600 millions (Previous year Rs.361.614 millions) are secured by way of pledge of shares/ Bonds/Units and also secured on pari passu basis by way of hypothecation of stocks of raw materials, finished and semi- finished goods, stores and spares, book debts etc. as well as by way of second charge on immovable properties pertaining to the Company.

c) Working capital term loans of Rs.250.800 millions (Previous year Rs.134.941 millions) from banks and Funded interest term loans of Rs.207.800 millions (Previous year Rs.143.900 millions) are secured on pari passu basis by way of hypothecation of stocks of raw materials, finished and semi-finished goods, stores and spares, book debts etc. as well as by way of second charge on immovable properties pertaining to Wireline, Wireless and Cable divisions of the Company.

d) Pursuant to the rework CDR package, some of the loans amounting to Rs.2430.301 millions have been converted into Equity shares of the

Company at a price of Rs.9.84 per equity share as per SEBI guidelines, after complying with necessary formalities in this regard.

In the previous year pending completion of such formalities the said amount of Rs.2430.301 millions was shown as "Loans pending conversion into Equity" under the head "Loan Funds".

e) All the secured loans as stated above are also personally guaranteed by Managing Director of the Company.

f) Term loans are repayable in 7 years commencing from Financial year 2012-13 with rate of Interest @ 10% p.a. and Interest free Funded interest term loans are repayable in three equal annual installments commencing from December 31, 2016, as detailed here in below:

(Rs. in millions)

 

F.Y 2012-13

F.Y 2013-14

F.Y 2014-15

F.Y 2015-16

F.Y 2016-17

F.Y 2017-18

F.Y 2018-19

Term Loans

145.739

145.739

145.739

218.609

218.609

291.479

291.479

FITL

--

--

--

--

285.851

285.851

285.851

 

SHORT TERM BORROWINGS

 

a) Working capital loans from banks aggregating to Rs.363.504 millions (Previous year Rs.534.300 millions) are secured on pari passu basis by way of hypothecation of stocks of raw materials, finished and semi- finished goods, stores and spares, book debts etc. as well as by way of second charge on immovable properties pertaining to Wireline, Wireless and Cable divisions of the Company.

b) Other loans amounting to Rs. Nil (Previous year Rs.0.123 million) are secured by way of hypothecation of assets under hire purchase agreements.

 

Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

Loans Repayable on Demand

 

 

- From Body Corporates

610.150

989.450

Total

610.150

989.450

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Khandelwal Jain and Company

Chartered Accountants

Address :

12-B, Baldota Bhawan, 117, Maharshi Karve Road, Mumbai – 400 020, Maharashtra, India

 

 

Subsidiaries :

v      HTL Limited

v      Moneta Finance Private Limited

 

 

Associates :

v      Microwave Communications Limited

v      Exicom Tele-Systems Limited

v      HFCL Satellite Communications Limited

v      HFCL Dacom Infochek Limited (HDIL)

v      HFCL Bezeq Telecom Limited

v      Westel Wireless Limited

v      Polixel Security Systems Private Limited

v      DragonWave HFCL India Private Limited

v      ANM Engineering and Works Private Limited

v      NextWave Communications Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5100000000

Equity Shares

Re.1/- each

Rs.5100.000 millions

25000000

Redeemable Preference Shares

Rs.100/- each

Rs.2500.000 millions

 

Total

 

Rs.7600.000 millions

 

 

 

 

 

Issued & Subscribed Capital :

No. of Shares

Type

Value

Amount

1239377194

Equity Shares

Re.1/- each

Rs.1239.377 millions

8050000

6.5% Cumulative Redeemable Preference Shares

Rs.100/- each

Rs.805.000 millions

 

Total

 

Rs.2044.377 millions

 

 

 

 

 

Paid-up Capital :

No. of Shares

Type

Value

Amount

1239377194

Equity Shares

Re.1/- each

Rs.1239.377 millions

8050000

6.5% Cumulative Redeemable Preference Shares

Rs.100/- each

Rs.805.000 millions

 

Total

 

Rs.2044.377 millions

 

 

 

 

 

A. Equity Shares

(i) 278,180 shares of Re.1/- each represent Global Depository Receipts.

 

(ii) 14,550,000 shares of Re.1/- each issued for consideration other than cash pursuant to the amalgamation of erstwhile Himachal Telematics Limited with the Company.

 

(iii) The Company on 10th April 2006, further allotted 100B to F Series Foreign Currency Convertible Bonds (FCCBs) of USD 100,000 each fully paid up aggregating to USD 10 million. Each FCCB has been converted into 168,620 fully paid up equity shares of face value of Rs.10 each at a premium of Rs.16.45 per equity share (At a total price of Rs.26.45 per share).

 

(iv) 529,601,640 shares of Re.1/- each have been allotted for a consideration other than cash pursuant to the Composite Scheme of Arrangement and Amalgamation between Sunvision Engineering Company Private Limited (SECPL) its share holders and the Optionally Convertible Debenture (OCD) holders and the Company and its shareholders sanctioned by the Hon'ble High Court of Himachal Pradesh at Shimla vide its order passed on 5th January, 2011.

 

B. Preference Shares

The Cumulative Redeemable Preference Shares (CRPS) aggregating to Rs. 805,000 shall be redeemed at the rate of 25% and 75% of the face value in the financial years ending 31st March 2018 and 31st March, 2019, respectively and will carry the coupon rate of 6.50% from new cut off date i.e. 1st January 2011. However, dividend accrued on notional basis, as same has not been declared and fallen due for payment, and penal interest thereon, till the cut-off date, stands waived as per CDR rework package.

 

C. (i) Shareholders holding more than 5 percent of Equity Shares

 

 

Name of Shareholder

Figures as at

31st March, 2012

No. of share held

NextWave Communications Private Limited

 

234765

 

% of Holding

18.94%

ANM Engineering and Works Private Limited

 

234765

 

% of Holding

18.94%

IDBI Bank Limited

 

150945

 

% of Holding

12.18%

Oriental Bank of Commerce

 

82825

 

% of Holding

6.68%

 

(ii) Shareholders holding more than 5 percent of Preference Shares

 

 

Name of Shareholder

Figures as at

31st March, 2012

No. of share held

General Insurance Corporation of India Limited

 

500000

 

% of Holding

6.21%

Unit Trust of India

 

--

 

% of Holding

--

Digivive Contents Services (Private) Limited

 

2950000

 

% of Holding

36.65%

IDBI Bank Limited

 

3500000

 

% of Holding

43.48%

Oriental Bank of Commerce

 

600000

 

% of Holding

7.45%

 

D. Statement of Reconciliation of equity capital is set below:

 

 

Name of Shareholder

Figures as at

31st March, 2012

No. of share held

No. of shares at the beginning of the year

 

992395

Add: Shares issued during the year

 

246982

Add: Bonus shares issued during the year

 

--

Less: Share bought back during the year

 

--

No. of shares at the end of the year

 

1239377

 

E. Terms/right attached to Equity/Preference Shares

The Company has issued equity share of Re.1/- each and preference share of Rs.100/- each. On a show of hands, every holder of equity shares is entitled for one vote and upon a poll shall have voting rights in proportion to the shares of the paid up capital of the Company held by them. Preference shareholders shall have voting right in proportion to the shares of the paid up capital provided if the dividend due on such capital or any part of such dividend has remained unpaid. The Company declares dividend, if any, in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amount in proportion to their shareholdings.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

(12 Months)

31.03.2011

(6 Months)

30.09.2010

(18 Months)

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2044.377

1797.395

1267.794

2] Equity Share pursuant to Scheme

0.000

0.000

529.602

3] Reserves & Surplus

4517.611

2220.006

301.125

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

6561.988

4017.401

2098.521

LOAN FUNDS

 

 

 

1] Secured Loans

2532.713

2831.494

8490.511

2] Unsecured Loans

610.150

989.450

2063.276

3] Loans Pending conversion into equity

0.000

2430.301

0.000

TOTAL BORROWING

3142.863

6251.245

10553.787

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

9704.851

10268.646

12652.308

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

872.392

888.121

1788.936

Capital work-in-progress

197.450

144.654

105.003

 

 

 

 

INVESTMENT

9700.143

10343.233

10646.080

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
321.745

348.128

389.840

 

Sundry Debtors
3112.845

3329.951

4219.089

 

Cash & Bank Balances
606.181

749.898

1216.746

 

Other Current Assets
209.241

197.684

160.600

 

Loans & Advances
1921.997

1355.614

2068.102

Total Current Assets
6172.009

5981.275

8054.377

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
333.203

529.708

1442.866

 

Other Current Liabilities
6881.851

6544.100

6484.359

 

Provisions
22.089

14.829

14.863

Total Current Liabilities
7237.143

7088.637

7942.088

Net Current Assets
(1065.134)

(1107.362)

112.289

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

9704.851

10268.646

12652.308

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

(12 Months)

31.03.2011

(6 Months)

30.09.2010

(18 Months)

 

SALES

 

 

 

 

 

Revenue From Operations

2607.078

864.147

3114.321

 

 

Other Income

277.451

131.976

816.593

 

 

TOTAL                                     (A)

2884.529

996.123

3930.914

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

281.615

211.723

7856.806

 

 

Purchase of goods for resale

853.425

399.609

 

 

 

Changes in inventories of Finished Goods, Work in Process and Stock in Trade

2.410

6.903

 

 

 

Employee Benefits Expenses

384.013

87.711

 

 

 

Provision for Impairment of Fixed assets

0.000

795.275

 

 

 

Other Expenses

622.779

228.662

 

 

 

Bad debts, Loans & advances and Others written off (Net)

155.058

2244.284

 

 

 

Less: Transferred from provision made in earlier years

(74.660)

(1132.715)

 

 

 

Exceptional Items

59.500

(2613.477)

 

 

 

TOTAL                                     (B)

2284.140

227.975

7856.806

 

 

 

 

 

Less

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

600.389

768.148

(3925.892)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

334.939

253.539

814.823

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

265.450

514.609

(4740.715)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

150.652

112.246

390.328

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

114.798

402.363

(5131.043)

 

 

 

 

 

Less

TAX                                                                  (H)

0.512

0.212

(5.090)

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

114.286

402.151

(5125.953)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

402.151

--

(14899.023)

 

 

 

 

 

 

Balance transferred to business reconstruction account

--

--

20024.976

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

516.437

402.151

--

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of export

0.944

1.599

8.578

 

TOTAL EARNINGS

0.944

1.599

8.578

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials & Components

119.056

70.291

397.714

 

 

Stores & Spares

1.300

0.744

6.017

 

 

Capital Goods

12.222

0.000

1.520

 

TOTAL IMPORTS

132.578

71.035

405.251

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

 

 

 

 

- Basic

0.06

0.38

(7.61)

 

- Diluted

0.06

0.35

(7.61)

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2012

(1st Quarter)

Net Sales

 

 

1274.540

Total Expenditure

 

 

1088.460

PBIDT (Excl OI)

 

 

186.080

Other Income

 

 

142.040

Operating Profit

 

 

328.120

Interest

 

 

70.220

Exceptional Items

 

 

(41.860)

PBDT

 

 

216.040

Depreciation

 

 

39.540

Profit Before Tax

 

 

176.500

Tax

 

 

0.000

Provisions and contingencies

 

 

0.000

Profit After Tax

 

 

176.500

Extraordinary Items

 

 

0.000

Prior Period Expenses

 

 

0.000

Other Adjustments

 

 

0.000

Net Profit

 

 

176.500

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

(12 Months)

31.03.2011

(6 Months)

30.09.2010

(18 Months)

PAT / Total Income

(%)
3.96

40.37

(130.40)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.40

46.56

(164.76)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
1.63

5.86

(52.13)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.02

0.10

(2.45)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.58

3.32

8.81

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.08

0.84

1.01

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HIMACHAL PRADESH HIGH COURT CASE STATUS INFORMATION SYSTEM

 

Case Status: PENDING

 

Status of COMPANY PETITION 12 of 2010

 

IN THE MATTER OF Vs. HIMACHAL FUTURISTIC COMMUNICATIONS LIMITED 

 

Pet’s Adv.: SUNIL MOHAL GOEL

 

Res’s Adv.: NEMO

 

Last Listed On: Thursday, December 02, 2010

 

Category: COMPANY PETITIONS

 

CONNECTED APPLICATION (S)

No Connected Application.

CONNECTED MATTER (S)

No Connected Cases.

 

Case Updated on: Wednesday, December 01, 2010

 

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

Yes

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

Yes

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

Yes

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

 

 


MANAGEMENT DISCUSSIONS AND ANALYSIS (MDA)

 

Financial Review

 

Sales during the financial year ended 31st March, 2012 stood at Rs.2638.282 millions as against the sale of Rs.885.526 millions in the previous financial year for six Months ended 31st March, 2011. During the year, the Company has earned a net profit of Rs.114.286 millions as compared to net profit of Rs.402.151 millions in the previous financial year.

 

Capital Structure

 

During the financial year 2011-12 the paid up capital of the Company stood at Rs.2044.377 millions.

 

Pursuant to the Rework Package as approved by the Corporate Debt Restructuring (CDR) cell at its meeting held on 9th February, 2001, the Board of Directors of the Company at its meeting held on 10th November, 2011 has allotted 246981857 equity shares of Re.1/- each at a premium of Rs.8.84 per equity arrived at in accordance with the Securities and Exchange of India (Issue of Capital and Disclosure Requirement) Regulations, 2009 in favour of Financial Institution and Banks.

 

OVERVIEW OF TELECOM GROWTH IN INDIA

 

Telecommunication is one of the largest success stories in Indian Industry. From just 5 million connections in 1991 to 950 million in 2012 and still growing, India is the fastest growing and second largest telecom industry in the world which accounts for 12 per cent of the world's total telephone subscribers. Wireless revolution is the biggest success story making India to demonstrate unparalleled growth over the last few years. The tele-density has increased from 4.3 in March 2002 to 78.1 in February 2012, wherein the rural areas registered an increase from 1.2 in March 2002 to 38.5 in February 2012. Telecommunications is no longer limited to voice. The evolution from analog to digital technology has facilitated the conversion of voice, data and video to the digital form. Increasingly, these are now being rendered through single networks bringing about a convergence in networks, services and also devices.

 

Government Policies have been big boost factor for telecom. The Sector has witnessed the most fundamental structural and institutional reforms since 1991 continuously. This has made the sector more competitive, while enhancing the accessibility of telecommunication services at affordable tariffs to the consumers.

 

Massive investments have been made, both by private and Government sectors in the last decade and growth continues unabated adding subscribers month on month. Telecom Sector’s contribution to overall GDP has increased from 1.5 percent to 3 percent during the last decade. It stands third largest sector in attracting FDI inflows having attracted more than 8 percent of cumulative FDI inflows during the period. Telecom ranked top infrastructure area attracting FDI of US$1988 million during April-Dec., 2011, 49% of the total FDI in infrastructure against US$ 1664 million during FY 2010-11.

 

Telecom Sector was in news during 2011 for many reasons. While, for certain reasons it gathered much political attention, it also witnessed some significant developments such as introduction of Mobile Number Portability (MNP), 3G rollout, and unveiling of National Telecom Policy giving much needed direction to the industry.

 

The year 2012 will be very exciting year for telecom industry. The third-generation (3G) and broadband wireless access (BWA) auctions that took place last year are expected to act as catalysts for enabling internet access to even the remotest parts of India and further boost the use of mobile broadband and mobile data as well as applications. The upcoming decade will usher in an information era through mobile value added services (MVAS) and 'broadband for all”. Moreover, Government has approved a project for a national optical fibre network in October 2011 for providing broadband connectivity to every village panchayat at a cost of Rs.200000.000 millions which boost the Indian telecom infrastructure and services industry. Government has also approved a budget of about Rs.130000.000 millions for setting up a fibre optic network of Rs.0.060 million route kilometers for defence services.

 

This will enable the defence forces, specially army to vacate the wireless spectrum they use for their communication and release it to the Department of Telecommunication (DoT). The Government had invited tenders for this project about two years back but because of the budget constraint, the project was delayed. It is expected that the Government will again invite the bids for this project this year. These opportunities will result in investment from the private sector both for providing different services and for manufacturing of broadband related telecom equipment. Corresponding investment shall be made in various broadband access technologies.

 

In its continuous endeavour to boost the telecom growth, government has rolled out the New Telecom Policy (NTP 2012) which targets to increase rural tele-density from the current level of around 39 to 70 by the year 2017 and 100 by the year 2020 and have 175 million broadband connections by the year 2017 and 600 million by the year 2020. Indigenous R&D and manufacturing has been given due importance which shall promote the manufacturing of telecom products. NTP- 2012 also endeavours to create an investor friendly environment for attracting additional investments in the sector apart from generating manifold employment opportunities in various segments of the sector. NTP-2012 has the vision of Broadband on demand for rural or urban ensuring equitable and inclusive development across the nation. NTP- 2012 incorporates framework for increasing the availability of spectrum for telecom services including triple play services (voice, video and data) for which broadband is the key driver. Therefore, growth lies in the areas of Wireless Broadband, Next Generation Networks, Rural Connects, Mobile VAS. The prospects of continued aggressive growth of the internet and mobile data traffic would prompt service providers to invest in the growth of these networks. The total investment in the pan-India broadband rollout is expected to be US$ 16.79 billion, while another US$ 9 billion will be invested in augmenting the transmission network.

 

India will become the second largest mobile broadband market globally within the next four years with 367 million mobile broadband connections by 2016. This will make it a larger market than the US. India’s 3G subscriber base will grow at 30% CAGR to reach 200 million by 2016. Not only this, boosted by better handsets and data speed, mobile value-added services (MVAS) will also boom in the future. MVAS users are expected to be 430 mn with CAGR of 28%. Further, the rural mobile subscriber base is anticipated to grow at a compound annual growth rate of 12% between 2012 and 2016, at nearly twice the expected growth rate of the saturated urban market. It is likely that 62% of the new mobile subscribers added in the next five years will be from the rural market. India is expected to have a cumulative capex spend of about $121 billion in the next 5 years.

 

OPPORTUNITIES AND OUTLOOK

 

There is a huge potential of business in both equipment and turnkey services during the next 3-5 years. The broadband networks will be IP based and there will be rollout of several Pan India Broadband wireless networks. The Company is a proven one-stop-shop for telecom infrastructure providers capable to deliver end to end telecom solutions. For seeking the first mover advantage in the broadband era, the service operators would strive for rapid installation and expansion of IP networks by sourcing out the same to vendor who can provide end to end turnkey services with no hassles and the Company is eminently suited for the same as it offers a comprehensive set of services led by a team of highly experienced professionals who are engaged at every stage of the network lifecycle, from the initial planning and design to the ongoing support of the network and equipment. The Company has the expertise in RF planning, telecom equipment installation, commissioning, testing and handing over the networks.

 

Moreover a number of private operators are now outsourcing operation and maintenance services of their network. The Company has again the experience and expertise of managing and maintaining the networks at highest level of efficiency.

 

With the Government’s intent to promote local manufacture, there is huge potential for contract manufacturing. The Company has already signed contract manufacturing agreement with DragonWave Inc., a Canadian Radio manufacturing company. The Company also has the capability to cater the upcoming demand of customer there is ambitious plan for laying optical fibre cable through out the country. The company is already one of the largest player in supplying optical fibre cables which shall be in continued demand by the service providers. During the year, the Company has made a capital investment of Rs.11.574 millions to increase the existing manufacturing capacity of optical fibre cable at its Goa plant.

 

Therefore, big opportunity lies for the Company in providing turnkey services to the telecom infrastructure providers and manufacturing of IP Radios, Optical Fibre Cables, GPON-FTTH, Wireless Repeaters and Broadband CPEs.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

 

Particulars

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

(a) Unexpired Letters of Credit (margin money paid Rs.70.000 millions; Previous year Rs.20.511 millions)

125.214

15.702

(b) Guarantees given by banks on behalf of the Company (margin money kept by way

of fixed deposits Rs.147.919 millions; Previous year Rs.168.812 millions)

338.176

478.992

c) Counter Guarantees given by the Company to the financial institutions/banks for providing guarantees on behalf of companies promoted by the Company. (margin money kept by the banks by way of fixed deposits Rs. Nil ; Previous year Rs Nil)

1374.331

1374.331*

(d) Arrears of Dividend on Cumulative redeemable preference shares

137.937

400.513

 

* This excludes Company’s counter guarantees of Rs.567.000 millions in respect of guarantees provided by the banks and institutions on behalf of HFCL Bezeq Telecom Limited for bid bonds to Department of Telecommunications (DoT) towards tender for operation of basic telephone services as the guarantees have already expired and the Hon’ble Delhi High Court vide its order dated 19.09.97 granted permanent injunction restraining the DoT from invoking the said guarantees. The appeal filed by DoT against this also stands dismissed as per order dated 02.01.2012. The Hon’ble High Court has further directed the banks to treat the said bank guarantee(s) as discharged.

 

UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED 30TH JUNE, 2012

 

(Rs. in millions)

Particulars

Three Months Ended

June 30, 2012

Unaudited

1. Income from operations

 

Net Sales/Income from operations (Net of Excise Duty)

1274.543

2. Expenses

 

a) Cost of materials/services consumed

658.200

b) Purchases of stock-in-trade

126.670

c) Changes in Inventories of finished goods, work in progress and stock In Trade

(18.734)

d) Employee benefits expenses

167.769

e) Depreciation. Impairment and Amortisation Expenses

39.538

f) Other expenses

155.592

g) Bad debts advances & Miscellaneous balances written off (net)

(1.040)

Total

1127.995

3. Profit/ (Loss) from Operations before Other Income, Finance Costs and Exceptional Items

146.548

4. Other Income

142.035

5. Profit/(Loss) from ordinary activities before finance costs and exceptional items (3+4)

288.583

6. Finance Cost

70.218

7. Profit/ (Loss) from ordinary activities alter finance costs but before exceptional items (5-6)

218.365

8. Exceptional Items - expenses /(income)

41.861

9. Profit/ (Loss) from ordinary activities before Tax

176.504

10. Tax Expenses

34.894

MAT Credit Entitlements

34.894

11. Net Profit/ (Loss) from ordinary activities after Tax (9-10)

176.504

12. Extra-ordinary items – expenses / (Income)

--

13. Net Profit/ (Loss) for the period (11-12)

176.504

14. Share of (profit) I loss of Associates

--

15 Minority interest

--

16. Net profit/ (loss) after taxes, minority interest and share of profit/ (loss) of associates (13-14)

176.504

17 Pad-up Equity Share Capital (Face value of Re.1/- each)

1239.377

18. Reserves excluding revaluation reserves as per Balance sheet of previous year

--

19. (a) EPS before Extraordinary Item (Rs.) (Not Annualised)

 

Basic

0.13

Diluted

0.13

(b) EPS after Extraordinary Item (Rs.) (Not Annualised

 

Basic

0.13

Diluted

0.13

 

 

PART – 2

 

1. Public shareholding

 

- Number of shares

759799800

- Percentage of shareholding

61.30

2. Promoters and Promoters group Shareholding-

 

a) Pledged /Encumbered

 

Number of shares

1056000

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

0.22

Percentage of shares (as a % of total share capital of the company)

0.09

b) Non  Encumbered

 

Number of shares

478243214

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

99.78

Percentage of shares (as a % of total share capital of the company)

38.59

 

Particulars

 

B. INVESTOR COMPLAINTS

 

Pending at the beginning of the quarter

Nil

Received during the quarter

8

Disposed of during the quarter

8

Remaining unresolved at the end of the quarter

Nil

 

 

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

(Rs. in millions)

Particulars

Three Months Ended

June 30, 2012

Unaudited

1. Segment Revenue

 

a. Telecom Products

310.895

b. Turnkey Contracts and Services

963.648

c. Others

0.000

Total

1274.543

 

 

Less: Inter segment revenue

0.000

Net Sales/Income from Operations

1274.543

 

 

2. Segment Results Profit /(Loss) before tax and interest for each segment

 

a. Telecom Products

(39.069)

b. Turnkey Contracts and Services

215.189

c. Others

0.000

Total

176.120

Less. i. Interest

70.218

ii. Other un-allocable expenditure net off un-allocable income

(70.602)

Total Profit before Tax

176.504

 

 

3. Capital Employed

 

a. Telecom Products

3109.014

b. Turnkey Contracts and Services

862.080

c. Others

0.000

Total capital employed in segments

3971.094

Add: Un-allocable corporate assets less liabilities

2767.398

Total capital employed In Company

6738.492

 

Notes:

 

1. The above results have been reviewed by the Audit committee and taken on record by the Board of Directors at its meeting held on 21st July, 201 2 and the Statutory Auditors have carried out Limited Review of the same.

2. The Auditors' Comments in their report on the Annual Accounts for the financial year ended 31st March, 2012 and in the Limited Review Report of the quarter have been addressed as under:

i) The Company has complied with conditions as stipulated in Rework CDR Package.

ii) The Company has made adequate provisions for doubtful debts.

iii) The Company obtains the confirmations from sundry debtors, creditors, lenders etc. in ordinary course of business.

iv) The Company has received necessary approval from the Central Government for the re-appointment and payment of remuneration to Whole-time Directors for the Financial Year 2007-08, 2008-09 and part Financial Year 2009-10 for Rs.27.464 millions. The Company also filed the necessary Application with the Central Government seeking their approval for re-appointment and payment of remuneration to Whole-time Director for remaining part of the Financial Year 2009-10 and onwards which has not been approved by the - Central Government. However, since the Financial Year 2007-08, the Company has so far paid Rs.67.641 millions as remuneration to whole time Directors. As the approval of Central Government received is of lesser amount than the actual remuneration paid for the aforesaid period, the excess amount of Rs.40.177 millions paid continues to be shown as recoverable. The Company is in the process of making representation to the Central Government for seeking their approval for the entire amount of remuneration paid to them.

 

3. During the quarter, payments made to lenders of promoted companies towards guarantee obligation amounting to Rs. 41.861 millions has been accounted for under the head Exceptional items.

 

4. Other income includes Rs.122.500 millions on account of sale of one of investment.

 

5. Figures of the previous periods have been regrouped are arranged wherever considered necessary.

 

FIXED ASSETS:

 

Tangible Assets

v      Land - Leasehold

v      Land - Freehold

v      Buildings-Leasehold

v      Buildings - Freehold

v      Buildings - Leasehold Improvements

v      Plant and Machinery

v      Electrical Installation

v      Furniture and Fixtures

v      Office Equipments

v      Vehicles

v      Moulds and Dies

Intangible Assets

v      Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.53.63

UK Pound

1

Rs.86.17

Euro

1

Rs.69.75

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--CREDIT LINES

1~10

3

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

37

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.