MIRA
INFORM REPORT
|
Report Date : |
05.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
J B CHEMICALS AND PHARMACEUTICALS LIMITED (w.e.f. 21.08.1985) |
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Formerly Known
As : |
J.B. MODY CHEMICALS AND PHARMACEUTICALS LIMITED |
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Registered
Office : |
Neelam Centre, B Wing, 4th Floor, Hind Cycle Road, Worli,
Mumbai-400030, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
18.12.1976 |
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Com. Reg. No.: |
11-019380 |
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Capital
Investment / Paid-up Capital : |
Rs. 169.415 Millions |
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CIN No.: [Company Identification
No.] |
L24390MH1976PLC019380 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of pharmaceutical dosage forms like tablets, injectable
(vials, ampoules, form fill seal), creams and ointments, lozenges, herbal
liquids and capsules. |
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No. of Employees
: |
Information denied by the management |
RATING & COMMENTS
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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 40360000 |
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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 a well established company having a fine track record. The financial position of the company is sound and healthy. Directors are
reported as well experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active.
Payment terms are regular and as per commitment. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
We are living in a world
where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and the
US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA (Long Term Rating) |
|
Rating Explanation |
High degree of safety and very low credit risk. |
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Date |
29.11.2012 |
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Rating Agency Name |
CRISIL |
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Rating |
A1+ (Short Term Rating) |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
29.11.2012 |
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.
INFORMATION DECLINED BY
Management non co-operative
LOCATIONS
|
Registered Office : |
Neelam Centre, B Wing, 4th Floor, Hind Cycle Road, Worli, Mumbai-400030,
Maharashtra, India |
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Tel. No.: |
91-22-30451200 / 500 |
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Fax No.: |
91-22-2493 0534 / 2493 9633 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot Nos. 215 to
219, 304 to 310 and Plot No.4 and 5, Phase IV, GIDC Industrial Area, Panoli
394 116, Maharashtra, India |
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Factory 2 : |
Plot Nos.128/1, 128/1/1,
128/2, 129/1 and 129/B1, GIDC Industrial Area, Ankleshwar 393 002, Gujarat,
India |
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Factory 3 : |
Survey No.101/2
and 102/1, Daman Industrial Estate, Airport Road, Kadaiya, Daman 396 210,
Union Territory |
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Factory 4 : |
Plot No. P-10,
Shiv Mahape, P.O. Gansoli, Thane-Belapur Road, Navi Mumbai-400 701,
Maharashtra, India |
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R & D Centres 1 : |
Plot
No.A-154/155, Wagle Industrial Estate, Thane (West) 400 604, Maharashtra,
India |
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R & D Centres 2 : |
Plot No.128/1,
GIDC Industrial Area, Ankleshwar 393 002, Gujarat, India |
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R & D Centres 3 : |
Plot No.5, Phase
IV, GIDC Industiral Area, Panoli 394 116, India |
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R & D Centres 4 : |
Plot No. 218/219,
GIDC Industrial Area, Panoli 394 116., India |
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R & D Centres 5 : |
101/2 and 102/1,
Daman Industrial Estate, Airport Road, Village Kadaiya, Nani Daman 396 210
(U.T.) |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Jyotindra B. Mody |
|
Designation : |
Chairman and Managing Director |
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Name : |
Mr. Dinesh B. Mody |
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Designation : |
Whole time
Director (Administration) |
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Name : |
Mr. Shirish B. Mody |
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Designation : |
Whole time
Director (Marketing) |
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Name : |
Mr. Bansidhar S. Mehta |
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Designation : |
Director |
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Name : |
Mr. Durga Dass Chopra |
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Designation : |
Director |
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Name : |
Mr. Bharat P. Mehta |
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Designation : |
Whole time
Director (Planning and Development) |
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Name : |
Mr. Pranabh Mody |
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Designation : |
President and
Whole time Director (Operations) |
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Name : |
Mr. Sanjay Asher |
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Designation : |
Director |
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Name : |
Mr. Rajiv C. Mody |
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Designation : |
Director |
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Name : |
Mr. Kamlesh L. Udani |
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Designation : |
Executive
Director (Technical and Production) |
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Name : |
Dr. Satyanarain Agarwala |
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Designation : |
Director |
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Name : |
Dr. Niranjan N. Maniar |
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Designation : |
Director |
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|
Name : |
Mr. Mahesh K. Shroff |
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Designation : |
Director |
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Name : |
Mr. Jashvantrai B. Joshi |
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Designation : |
Director |
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Name : |
Mr. Savya Sachi |
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Designation : |
Director -
Marketing and Sales |
KEY EXECUTIVES
|
Name : |
Mr. M. C. Mehta |
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Designation : |
Secretary |
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|
Name : |
Mr. P. K. Singh |
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Designation : |
President -
Global Business |
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|
Name : |
Mr. Nirav Mody |
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Designation : |
Senior Vice President
- Strategic Marketing and Business Development |
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|
Name : |
Mr. Jay Mehta |
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Designation : |
Senior Vice
President - Global Business (Russia and CIS) |
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Name : |
Mr. Sandeep Nasa |
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Designation : |
Head of Moscow Representative
Office |
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Name : |
Mr. Anupam Mehta |
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Designation : |
Senior Vice
President - Materials |
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Name : |
Mr. B. K. Dhar |
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Designation : |
General Manager
- API (B.U.) |
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Name : |
Mr. Mitesh
Kothari |
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Designation : |
General Manager
- Diagnostic |
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Name : |
Mr. Bhavesh
Joshi |
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Designation : |
Senior General
Manager - Finance and Accounts |
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CORE TECHNICAL TEAM |
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|
Name : |
Dr. Milind Joshi |
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Designation : |
President -
Regulatory Aff airs |
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Name : |
Mr. Parmeshwar
Bang |
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Designation : |
Vice President -
Works |
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Name : |
Mr. M. K. Karve |
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Designation : |
Quality
Controller - Corporate QA |
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|
Name : |
Mr. V. G.
Pansuriya |
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Designation : |
Vice President -
Research and Development |
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Audit Committee : |
·
Bansidhar S. Mehta (Chairman) ·
Dinesh B. Mody ·
Durga Dass Chopra ·
Mahesh K. Shroff ·
Dr. Niranjan N. Maniar ·
Dr. Satyanarain Agarwala |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category of Shareholder |
No. of Shares |
% of No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
3042110 |
3.59 |
|
|
43474960 |
51.32 |
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|
522610 |
0.62 |
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|
72610 |
0.09 |
|
|
450000 |
0.53 |
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|
47039680 |
55.53 |
|
|
|
|
|
|
286517 |
0.34 |
|
|
286517 |
0.34 |
|
Total shareholding of Promoter and Promoter Group (A) |
47326197 |
55.87 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
16124 |
0.02 |
|
|
130560 |
0.15 |
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|
1903000 |
2.25 |
|
|
1935551 |
2.28 |
|
|
3985235 |
4.70 |
|
|
|
|
|
|
2441481 |
2.88 |
|
|
|
|
|
|
19265859 |
22.74 |
|
|
10594921 |
12.51 |
|
|
1098107 |
1.30 |
|
|
1090607 |
1.29 |
|
|
7500 |
0.01 |
|
|
33400368 |
39.43 |
|
Total Public shareholding (B) |
37385603 |
44.13 |
|
Total (A)+(B) |
84711800 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
84711800 |
0.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Sr. No |
Name of the Shareholder |
Details of Shares held |
Total shares (including underlying shares
assuming full conversion of warrants and convertible securities) as a % of
diluted share capital |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
|
||
|
1 |
Jyotindra B Mody |
4,73,490 |
0.56 |
0.56 |
|
2 |
Dinesh B Mody |
300 |
0.00 |
0.00 |
|
3 |
Shirish B Mody |
2,27,550 |
0.27 |
0.27 |
|
4 |
Kumud D Mody |
1,04,865 |
0.12 |
0.12 |
|
5 |
Bharati S Mody |
1,53,655 |
0.18 |
0.18 |
|
6 |
Pallavi B Mehta |
3,10,890 |
0.37 |
0.37 |
|
7 |
Pranabh Dinesh Mody |
90,000 |
0.11 |
0.11 |
|
8 |
Pranabh Dinesh Mody |
87,325 |
0.10 |
0.10 |
|
9 |
Sejal Pranabh Mody |
50,000 |
0.06 |
0.06 |
|
10 |
Nirav Shirish Mody |
2,18,500 |
0.26 |
0.26 |
|
11 |
Jinali Pranabh Mody |
3,000 |
0.00 |
0.00 |
|
12 |
Purvi Uday Asher |
3,75,000 |
0.44 |
0.44 |
|
13 |
Jay Bharat Mehta |
2,050 |
0.00 |
0.00 |
|
14 |
Dinesh Bhagwanlal Mody (D B Mody HUF) |
5,02,500 |
0.59 |
0.59 |
|
15 |
Uday M Asher |
1,20,900 |
0.14 |
0.14 |
|
16 |
Uday Madhavdas Asher |
14,100 |
0.02 |
0.02 |
|
17 |
Kantaben Vinaychandra Gosalia |
19,420 |
0.02 |
0.02 |
|
18 |
Kantaben Vinaychandra Gosalia |
6,460 |
0.01 |
0.01 |
|
19 |
Rajen D Shah |
10,000 |
0.01 |
0.01 |
|
20 |
Bharat P Mehta |
1,71,810 |
0.20 |
0.20 |
|
21 |
Bharat P Mehta |
29,715 |
0.04 |
0.04 |
|
22 |
Nalini Rasiklal Mehta |
650 |
0.00 |
0.00 |
|
23 |
Vibha Anupam Mehta |
9,500 |
0.01 |
0.01 |
|
24 |
Anupam Pravinchandra Mehta |
5,000 |
0.01 |
0.01 |
|
25 |
P D Mody ( P D Mody HUF) |
7,000 |
0.01 |
0.01 |
|
26 |
Jyotindra Bhagwanlal Mody |
19,125 |
0.02 |
0.02 |
|
27 |
Pallavi Bharat Mehta |
53,485 |
0.06 |
0.06 |
|
28 |
Nirav Shirish Mody |
2,25,000 |
0.27 |
0.27 |
|
29 |
Nirav Shirish Mody |
2,25,000 |
0.27 |
0.27 |
|
30 |
Synit Drugs Private Limited |
750 |
0.00 |
0.00 |
|
31 |
Jyotindra Mody Holdings Private Limited |
74,66,242 |
8.81 |
8.81 |
|
32 |
Dinesh Mody Securities Private Limited |
70,55,326 |
8.33 |
8.33 |
|
33 |
Shirish B Mody Investments Private Limited |
65,30,601 |
7.71 |
7.71 |
|
34 |
Kumud Mody Securities Private Limited |
71,81,232 |
8.48 |
8.48 |
|
35 |
Ansuya Mody Securities Private Limited |
72,34,882 |
8.54 |
8.54 |
|
36 |
Bharati S Mody Investments Private Limited |
78,73,987 |
9.30 |
9.30 |
|
37 |
Namplas Chemicals Private Limited |
1,23,110 |
0.15 |
0.15 |
|
38 |
Boxcare Packagings Private Limited |
8,830 |
0.01 |
0.01 |
|
39 |
Nisha Vinaychandra Gosalia |
2,420 |
0.00 |
0.00 |
|
40 |
Dilip Sukhlal Mehta |
20,411 |
0.02 |
0.02 |
|
41 |
Nirmala Zaveri |
4,500 |
0.01 |
0.01 |
|
42 |
Rajniben Zaveri |
11,500 |
0.01 |
0.01 |
|
43 |
Ila Parekha |
9,599 |
0.01 |
0.01 |
|
44 |
Bharat K Doshi |
25,402 |
0.03 |
0.03 |
|
45 |
Nitin K Doshi |
2,61,115 |
0.31 |
0.31 |
|
|
Total |
4,73,26,197 |
55.87 |
55.87 |
(*) The term encumbrance has the same meaning as assigned to
it in regulation 28(3) of the SAST Regulations, 2011.
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to the
category Public and holding more than 1% of the total number of shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming
full conversion of warrants and convertible securities) as a % of diluted
share capital |
|
|
1 |
Ashish Dhawan |
8052838 |
9.51 |
9.51 |
|
|
2 |
General Insurance Corporation of India |
1101000 |
1.30 |
1.30 |
|
|
|
Total |
9153838 |
10.81 |
10.81 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons (together with
PAC) belonging to the category “Public” and holding more than 5% of the total
number of shares of the company
|
Sl. No. |
Name(s) of the shareholder(s) and the Persons
Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
Total shares (including underlying shares
assuming full conversion of warrants and convertible securities) as a % of
diluted share capital |
|
|
1 |
Ashish Dhawan |
8052838 |
9.51 |
9.51 |
|
|
|
Total |
8052838 |
9.51 |
9.51 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of pharmaceutical dosage forms like tablets, injectable (vials,
ampoules, form fill seal), creams and ointments, lozenges, herbal liquids and
capsules. |
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management
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Bankers : |
·
Bank of India ·
BNP Paribas ·
Standard Chartered Bank ·
HDFC Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
J. K. Shah and Company Chartered Accountant |
|
Address : |
Mumbai, Maharashtra, India |
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Cost Auditors : |
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|
Name : |
N. I. Mehta and Company Chartered Accountant |
|
Address : |
Mumbai, Maharashtra, India |
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Subsidiaries : |
·
OOO Unique Pharmaceutical Laboratories ·
J. B. Healthcare Private Limited ·
J. B. Chemicals and Pharmaceuticals Private
Limited ·
LLC Unique Pharmaceutical Laboratories |
|
|
|
|
Associates Concerns / Trusts / Companies / Joint Venture : |
·
Mody Trading Company ·
Mody Brothers ·
Jyotindra Family Trust ·
Dinesh Family Trust ·
Shirish Family Trust ·
Biotech Laboratories (Pty.) Private Limited ·
Jyotindra Mody Holdings Private Limited ·
Ansuya Mody Securities Private Limited ·
Dinesh Mody Securities Private Limited ·
Kumud Mody Securities Private Limited ·
Shirish B. Mody Investments Private Limited ·
Bharati S. Mody Investments Private Limited ·
J. B. Mody Enterprises Private Limited ·
Ansuya Mody Enterprises Private Limited ·
Dinesh Mody Ventures Private Limited ·
Kumud Mody Ventures Private Limited ·
Shirish Mody Enterprises Private Limited ·
Bharati Mody Ventures Private Limited ·
Synit Drugs Private Limited ·
Unique Pharmaceutical Laboratories Limited ·
Ifiunik Pharmaceuticals Limited ·
Namplas Chemicals Private Limited ·
Raptim Research Limited ·
Gemma Jewellery Private Limited ·
Lekar Pharma Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs.2/- each |
Rs. 200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
84707300 |
Equity Shares |
Rs.2/- each |
Rs. 169.415
Millions |
|
|
|
|
|
NOTES
Reconciliation of
the shares outstanding and amount of Share Capital
|
Particulars |
As at March 31,
2013 |
|
|
Number |
Rs. In Millions |
|
|
Shares outstanding at the beginning of the year |
8,47,07,300 |
169.415 |
|
Shares Issued during the year pursuant to Employees Stock Options Scheme |
|
|
|
Shares
outstanding at the end of the year |
8,47,07,300 |
169.415 |
The company has only
one class of issued shares having par value of Rs. 2/-. Each holder of equity
shares is entitled to one vote per share.
Details of
Shareholders holding more than 5% shares
|
Particulars |
As at March 31,
2013 |
|
|
No. of Shares Held |
% of Holding |
|
|
Jyotindra Mody Holdings Private Limited |
74,66,242 |
8.81 |
|
Dinesh Mody Securities Private Limited |
70,55,326 |
8.33 |
|
Shirish B. Mody Investments Private Limited |
65,30,601 |
7.71 |
|
Ansuya Mody Securities Private Limited |
72,34,882 |
8.54 |
|
Kumud Mody Securities Private Limited |
71,81,232 |
8.48 |
|
Bharati S. Mody Investments Private Limited |
78,73,987 |
9.30 |
|
Ashish Dhawan |
77,73,672 |
9.18 |
Shares reserved for issue under ESOP
In the year 2004, the
company has instituted the Employees Stock Option Scheme, under which 25,00,000
equity shares of Rs. 2 each have been reserved. Under the Scheme, the options
are granted at an amount equal to ninety five percent of the average daily
closing price of the shares of the company’s share quoted on National Stock
Exchange of India Ltd. during the period of twelve weeks preceding the date of
grant. These options vest in four equal installments and subject to other
provisions of the Scheme, are exercisable within a period of five years from
the respective date of vesting.
The activity in the said ESOP Scheme during the last two years was as
under:
|
Particulars |
As at March 31, 2013 |
|
Options outstanding at the beginning of the period |
5,20,925 |
|
Lapsed |
1,84,350 |
|
Options outstanding at the end of the period |
3,36,575 |
On exercise of options during the year, the company received aggregate
exercise price of Rs. Nil (Previous year Rs. 15.783 Millions).
AS ON 30.07.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs.2/- each |
Rs. 200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
84711800 |
Equity Shares |
Rs.2/- each |
Rs. 169.424
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
169.415 |
169.415 |
169.034 |
|
(b) Reserves & Surplus |
9920.603 |
9369.217 |
6963.793 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
10090.018 |
9538.632 |
7132.827 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
72.426 |
115.217 |
120.294 |
|
(b) Deferred tax liabilities (Net) |
219.749 |
165.569 |
144.362 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
82.282 |
82.684 |
68.824 |
|
Total Non-current Liabilities (3) |
374.457 |
363.470 |
333.480 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
367.735 |
552.265 |
1333.637 |
|
(b) Trade payables |
517.614 |
335.377 |
443.581 |
|
(c) Other current
liabilities |
984.087 |
766.974 |
556.987 |
|
(d) Short-term provisions |
394.330 |
170.453 |
272.162 |
|
Total Current Liabilities (4) |
2263.766 |
1825.069 |
2606.367 |
|
|
|
|
|
|
TOTAL |
12728.241 |
11727.171 |
10072.674 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2924.948 |
2402.073 |
2246.933 |
|
(ii) Intangible Assets |
18.716 |
8.025 |
5.021 |
|
(iii) Capital
work-in-progress |
47.298 |
389.183 |
36.688 |
|
(iv)
Realisable Value of Impaired Assets |
0.772 |
0.772 |
0.802 |
|
(b) Non-current Investments |
389.798 |
387.898 |
422.421 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
142.847 |
125.829 |
121.579 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
3524.379 |
3313.780 |
2833.444 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
3946.780 |
2989.218 |
810.463 |
|
(b) Inventories |
898.892 |
907.985 |
817.822 |
|
(c) Trade receivables |
1946.431 |
1312.082 |
3854.542 |
|
(d) Cash and cash
equivalents |
1491.099 |
2113.624 |
1229.177 |
|
(e) Short-term loans and
advances |
920.660 |
1090.482 |
527.226 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
9203.862 |
8413.391 |
7239.230 |
|
|
|
|
|
|
TOTAL |
12728.241 |
11727.171 |
10072.674 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8164.225 |
6864.213 |
8066.890 |
|
|
|
Other Income |
259.607 |
285.119 |
58.844 |
|
|
|
TOTAL |
8423.832 |
7149.332 |
8125.734 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2619.038 |
2032.053 |
2090.033 |
|
|
|
Purchases of stock-in-trade |
715.517 |
699.976 |
497.006 |
|
|
|
Employee benefits expense |
1201.287 |
1013.132 |
1164.270 |
|
|
|
Other expenses |
2466.070 |
2531.790 |
2792.989 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
48.097 |
(54.718) |
(156.467) |
|
|
|
TOTAL |
7050.009 |
6222.233 |
6387.831 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
1373.823 |
927.099 |
1737.903 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
52.418 |
217.769 |
101.861 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
1321.405 |
709.330 |
1636.042 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
243.958 |
223.040 |
226.508 |
|
|
|
|
|
|
|
|
|
Add |
Exceptional Item
: Profit on sale of OTC Business Undertaking in Russia - CIS Countries |
0.000 |
7605.934 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
1077.447 |
8092.224 |
1409.534 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
228.062 |
1665.230 |
227.588 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
849.385 |
6426.994 |
1181.946 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4664.183 |
3308.119 |
4888.087 |
|
|
|
Export of Service |
745.40 |
0.000 |
0.000 |
|
|
|
Dividend |
15.948 |
249.698 |
0.000 |
|
|
|
Other Earnings |
0.000 |
0.000 |
4.191 |
|
|
TOTAL EARNINGS |
5425.531 |
3557.817 |
4892.278 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials & Packing Materials |
510.526 |
324.770 |
464.688 |
|
|
|
Component Stores & Spares Parts |
16.569 |
3.314 |
3.864 |
|
|
|
Capital Goods |
69.266 |
312.433 |
111.909 |
|
|
|
Others |
0.456 |
0.000 |
3.943 |
|
|
TOTAL IMPORTS |
596.817 |
640.517 |
584.404 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
10.03 |
75.95 |
14.00 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
10.08
|
89.90 |
14.55 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.20
|
117.89 |
17.47 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.77
|
73.91 |
14.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.85 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.04
|
0.07 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.07
|
4.61 |
2.78 |
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 |
No |
|
8] |
No. of employees |
No |
|
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) |
Yes |
|
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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
|
Unsecured Loan |
Rs.
In Millions 31.03.2013 |
Rs.
In Millions 31.03.2012 |
|
LONG TERM BORROWINGS |
|
|
|
Fixed Deposit from Public and Shareholders |
70.250 |
107.190 |
|
Inter Corporate Deposit |
0.000 |
4.000 |
|
SHORT TERM BORROWINGS |
|
|
|
(a) Foreign currency loans from Bank |
0.000 |
146.960 |
|
(b) Interest free advance from Directors |
0.150 |
0.150 |
|
(c) Deposit from Distributors / Customers |
24.705 |
24.705 |
|
(d) Inter Corporate Deposits from related parties |
10.500 |
120.450 |
|
|
|
|
|
TOTAL |
105.605 |
403.455 |
CURRENT MATURITIES
OF LONG TERM DEBT
(Rs.
In Millions)
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Current
maturities of long-term debt |
|
|
|
|
Vehicle Loan |
1.181 |
1.308 |
1.127 |
|
Sales Tax Deferral |
0.000 |
1.634 |
1.634 |
|
Fixed Deposit from Public & Shareholders |
50.694 |
29.236 |
80.008 |
|
Inter Corporate Deposit |
4.000 |
0.000 |
0.000 |
|
External Commercial Borrowings |
0.000 |
0.000 |
148.600 |
|
|
|
|
|
|
TOTAL |
55.875 |
32.178 |
231.369 |
VIEW INDEX OF
CHARGES
|
S.
No. |
Charge
ID |
Date
of Charge Creation/Modification |
Charge
amount secured |
Charge
Holder |
Address
|
Service
Request Number (SRN) |
|
1 |
10258640
|
26/11/2010
|
408,000.00
|
HDFC
BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG,
LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B01579739
|
|
2 |
10258752
|
26/11/2010
|
408,000.00
|
HDFC
BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT
MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B01596139
|
|
3 |
10258741
|
26/11/2010
|
633,000.00
|
HDFC
BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT
MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B01596436
|
|
4 |
80029551
|
28/09/2010
* |
1,400,000,000.00
|
BANK
OF INDIA AND 2 OTHERS |
BULLION EXCHANGE BRANCH, 185
SHEIKH MEMON STREET, MUMBAI, MAHARASHTRA - 400002, INDIA |
A96624770
|
|
5 |
80045184
|
28/09/2010
* |
1,400,000,000.00
|
BANK
OF INDIA AND 2 OTHERS |
BULLION EXCHANGE BRANCH, 185 SHEIKH
MEMON STREET, MUMBAI, MAHARASHTRA - 400002, INDIA |
A97007900
|
|
6 |
90240383
|
24/12/2004
* |
380,000,000.00
|
BANK
OF INDIA |
BULLION EXC BR 185 SHEIKH
MEMON ST, MUMBAI, MAHARASHTRA - 400002, INDIA |
- |
|
7 |
90238304
|
04/03/2005
* |
320,000,000.00
|
BANK
OF INDIA |
BULLION EXC BR 185 SHEIKH
MEMON ST, MUMBAI, MAHARASHTRA - 400002, INDIA |
- |
|
* Date of charge modification |
||||||
OPERATIONS
The financial performance
for the current year is strictly not comparable with that of the previous year
due to sale of Russia-CIS OTC business undertaking during the previous year.
During the year, the net income from operations at Rs. 8164.200 Millions was
18.94% higher over the previous year, while the total income for the year at
Rs. 8423.800 Millions was 17.83% higher against Rs. 7149.300 Millions (excludes
exceptional income) in the previous year. The profit before tax and profit
after tax for the year stood at Rs. 1077.400 Millions and Rs. 849.400 Millions
respectively.
The domestic
formulations business achieved growth in line with the industry growth, while
the focus products continued to achieve encouraging growth. During the current
year, the company aims for improved performance based on harnessing potential
of the existing products, penetration in rural markets and improving
productivity of field personnel coupled with selective new products launches.
The exports to Rest of the world markets achieved good growth of 22% in terms
of billing currency. In this business, the company has placed enhanced focus on
US market in view of encouraging sales in the last two years. Besides this
market, the company’s focus markets include South Africa, UK, Canada, Australia
and semi-regulated markets. The Rx business in Russia-CIS too fared well. The
company is, however, in the process of investing in this region for future
growth. The sales of bulk
drugs achieved growth of 56%.
As the members may
be aware, the company has received from Cilag GmbH International (“Cilag”) a
notice of claims under business Sale and Purchase Agreement dated May 23, 2011
and Supply Agreement dated May 23, 2012 for estimated amount of US$ 33.30
million (which coincides with the amount held in the escrow account) and US$ 5
million respectively. The company has contested these claims. In the spirit of
overall business, the company and Cilag are in discussion to resolve the
differences.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY DEVELOPMENTS
The domestic
formulations industry at sales of over Rs. 610000.000 Millions, for 12 months
period ended March 2013, grew at 10% (ORG IMS). The growth of Indian
formulations industry continues to remain robust and volumes and new
introductions from existing molecules remained key contributors to growth. The
recent ruling on patentability by the Supreme Court in Glivec’s case has
provided much needed clarity on patentability under the Indian law and would
help growth of generics business in the long run.
Clearly with a
view to participate in growth potential of domestic pharmaceutical market, the
market continues to show intense competition with increased number of brands
and new combination being launched in the market. This has put pressure on
prices and calls for product differentiation and innovative strategies for
growth.
SEGMENT WISE PERFORMANCE
The company is
engaged in one segment viz. pharmaceuticals. During the year, all
business units achieved good growth.
The domestic
formulations business at Rs. 3047.000 Millions achieved growth of 10%. The
focus brands in this business, however, showed a very strong growth. In this
business, the contrast media division achieved growth of 15%. Harnessing the
potential of existing products basket, penetration into existing and new
markets and focus on increase in productivity are all expected to help achieve
good growth in the current year.
The exports to
Rest of the world countries at Rs. 2206.800 Millions grew by 36% in Rupee
terms, while it achieved growth of 22% in US Dollar terms. Besides US market
which generated highest sales, the markets like Africa, South Africa, South
East Asia, Latin America, Middle East and Australia continued to fare well. The
ANDA products, site variation projects, OTC products and Lozenges products in
this business fared well.
The sales of
products in Russia-CIS markets at Rs. 1005.000 Millions registered growth of
81% over the previous year. However, change in regulatory requirements and
increasing cost of operations present challenge for growth. The company will
continue to invest in this market to meet the challenges and achieve potential
offered by the Russia-CIS market.
The sales of
active pharmaceutical ingredients at Rs. 622.600 Millions registered growth of
56%.
OUTLOOK
In view of good
business outlook both in domestic and international market as discussed above,
the company’s manufacturing
infrastructure of international standard, strong products portfolio with growth
brands, strong marketing capability and strong balance sheet present good
outlook for the company’s business.
FINANCIAL PERFORMANCE
The net revenue
from operations stood at Rs. 8164.200 Millions as against Rs. 6864.200 Millions
in the previous year, while total revenue for the year stood at Rs. 8423.800 Millions
against Rs. 7149.300 Millions in the previous year (excluding Exceptional
income).
The finance cost
at Rs. 52.400 Millions was lower due to better working capital management. The
profit before tax (before exceptional item) for the year at Rs.1077.400
Millions was 121.56% higher compared to profit of Rs. 486.200 Millions at the
same level last year. The financial performance for the year 2012-13 is
strictly not comparable with the previous year as the previous year’s revenue
included results of operations of Russia-CIS OTC business up to July 13, 2011
and income on sale thereof thereafter.
The earning per
share for the year was Rs. 10.03 per equity share of face value of Rs. 2 each.
FIXED ASSETS
·
Land
·
Factory Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
·
Office Equipments
·
Air Conditioners
·
Trade Marks
·
Computer Software
STATEMENT
OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30/06/2013
(Rs. In
millions)
|
Particulars |
Quarter Ended
30.06.2013 (Unaudited) |
|
(a) Net Sales/ Income from
operation |
2291.667 |
|
(b) Other Operating Income |
60.613 |
|
Total Income |
2352.280 |
|
2. Expenditure |
|
|
a. Cost of materials consumed |
782.535 |
|
b. Purchases of stock-in-trade |
223.914 |
|
c. Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
(20.748) |
|
d. Employees benefits expense |
339.001 |
|
e. Depreciation and amortization expense |
75.000 |
|
f. Exchange Fluctuation Transactional (Gain)/Loss |
0.358 |
|
g. Other Expenses |
623.338 |
|
Total Expenses |
2023.398 |
|
3. Profit(+)/ Loss(-)
from Operations before other Income Interest and Exceptional Item(1-2) |
328.882 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
15.152 |
|
5. Profit(+)/
Loss(-) before Interest and Exceptional Item |
344.034 |
|
6. Interest |
14.688 |
|
7. Profit(+)/
Loss(-) after Interest but before Exchange Fluctuation Translation Gain /
(Loss) (5-6) |
329.346 |
|
8. Exchange Fluctuation Translation Gain / (Loss) |
(54.416) |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
274.930 |
|
10. Tax Expenses |
71.676 |
|
11. Net
Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
203.254 |
|
12. Extraordinary Items (Net of Tax Expense Rs.________) |
-- |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
203.254 |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
169.424 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
-- |
|
16. Earning per Share (EPS) |
|
|
a) Basic |
2.40 |
|
b) Diluted |
2.40 |
|
17. Public
Shareholding |
|
|
Number of Shares |
37385603 |
|
% of Share holding |
44.13 |
|
18. Promoters
and promoter group Shareholding |
|
|
a)
Pledged/Encumbered |
|
|
- Number of shares |
-- |
|
- Percentage of shares (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 |
47326197 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
55.87 |
|
Particulars
|
3
Months ended 30.06.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES
1.
The above financial results have been reviewed by the
audit committee and approved by the board of directors at its meeting held on
July 26, 2013.
2.
The statutory auditors have carried out limited
review of the above financial results for the quarter ended on June 30, 2013.
3.
*Included in the figure of accumulated reserves as
of March 31, 2013 is net profit after tax on sale of the company’s Russia-CIS
OTC business undertaking (accounted vide financial statements for the financial
year ended on March 31, 2012). In relation to the said sale, a part of the proceeds
was kept in an Escrow Account with a bank in India. The Purchaser raised claims
in relation to the transaction of the said sale and consequently the amount in
such Escrow Account was not released, following which there was a series of
meetings, correspondences, etc. However, by a mutual decision reached on July
16, 2013, the Parties have agreed that the consideration paid for the sale of
the said business be revised downward by Rs. 645.000 Millions. Thus, out of the
balance in the said Escrow Account, a sum of Rs. 645.000 Millions has been
released to the Purchaser, while the balance amount being Rs. 730.700 Millions
has been released to the company. Accordingly, the said figure of reserves is
subject to a reduction of Rs. 645.000 Millions as aforesaid, which will be
appropriately reflected in the results for the quarter ending on September 30,
2013.
4.
The figures in respect of the results for preceding
quarter ended on March 31, 2013 are balancing figures between the audited
financial results in respect of the full financial year ended on March 31, 2013
and the published year to date figures up to the third quarter ended on
December 31, 2012.
5.
The company is engaged in a single segment of
activity viz. Pharmaceuticals.
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 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 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. 60.80 |
|
|
1 |
Rs. 91.95 |
|
Euro |
1 |
Rs. 80.36 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
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.