MIRA INFORM REPORT
|
Report Date : |
23.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
SABERO ORGANICS GUJARAT LIMITED |
|
|
|
|
Registered
Office : |
Plot No. 2102, G.I.D.C., District Bulsar, Sarigam – 396155,
Gujarat |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
29.11.1991 |
|
|
|
|
Com. Reg. No.: |
04-020753 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.338.551 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110GJ1991PLC020753 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS15850C/ SRTS05781G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCS5313C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufactures and Markets vide range of Fungicides, Herbicides,
Insecticides and Specialty Chemicals. |
|
|
|
|
No. of Employees
: |
Information declined by management
|
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2900000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of “Coromandel International Limited”. It is an
established company having a satisfactory track record. The company has achieved a decent net profitability during 2013 as
against the previous year’s huge losses recorded as on 2012. External
borrowings appears to huge which may affect the liquidity position of the
company. The ratings also take into consideration the established market
position of the subject in the domestic as well as international markets. Trade relations are fair. Business is active. Payment terms are
regular and as per commitments. In view of strong management and support of the holding company, the
subject can be considered 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 |
Long Term Rating: A+ |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
07.06.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating: A1+ |
|
Rating Explanation |
Very Strong degree of safety lowest credit
risk. |
|
Date |
07.06.2013 |
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
MANAGEMENT NON CO-OPERATIVE
Contact No.: 91-260-2780396
LOCATIONS
|
Registered Office/ Factory 1: |
Plot No. 2102, G.I.D.C., District Bulsar, Sarigam –
396155, Gujarat, India |
|
Tel. No.: |
91-260-2780395/ 2780396/ 915/ 2780852/ 3918500 |
|
Fax No.: |
91-260-2780853/ 3918500 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 2: |
Plot No. Z/103/G, Dahej SEZ-II, Taluka-Vagra, District Bharuch,
Gujarat, India |
|
|
|
|
Corporate Office
: |
Bezzola Commercial Complex, 3rd Floor, A - Wing, Suman Nagar, Sion
Trombay Road, Chembur, Mumbai – 400071, Maharashtra, India |
|
Tel. No.: |
91-22-61132400 |
|
Fax No.: |
91-22-61132405 |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. M. K. Tandon |
|
Designation : |
Chairman |
|
Qualification : |
Masters Degree in Commerce, Degree in Law |
|
Date of Appointment : |
11.07.2011 |
|
|
|
|
Name : |
Mr. M. M. Venkatachalam |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jayesh Gandhi |
|
Designation : |
Director |
|
Date of Birth/ Age : |
50 Years |
|
Qualification : |
B.Com, F.C.A |
|
Experience : |
29 Years |
|
Date of Appointment : |
02.12.2011 |
|
|
|
|
Name : |
Mr. Sujal Shah |
|
Designation : |
Director |
|
Date of Birth/ Age : |
43 Years |
|
Qualification : |
B. Com, F.C.A |
|
Experience : |
21 Years |
|
Date of Appointment : |
02.12.2011 |
|
|
|
|
Name : |
Mr. V. Ravichandran |
|
Designation : |
Director |
|
Qualification : |
Engineering Graduate, Post Graduate Diploma in Management, qualified
as Cost Accountant and Company Secretary. |
|
Date of Appointment : |
11.07.2011 |
|
|
|
|
Name : |
Mr. Kapil Mehan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. Veera Bhadram |
|
Designation : |
President and Whole-time Director |
|
Qualification : |
Graduation in
Agriculture from AP Agricultural University, and Post Graduation in
Agricultural Economics from G B Pant University of Agriculture and
Technology, PG Diploma in Management |
|
Date of Appointment : |
19.12.2011 |
KEY EXECUTIVES
|
Name : |
Ms. Pritam P. Vartak |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2013)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
25368287 |
74.91 |
|
|
0 |
0.00 |
|
|
25368287 |
74.91 |
|
|
|
|
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
25368287 |
74.91 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
436819 |
1.29 |
|
|
300 |
0.00 |
|
|
203799 |
0.60 |
|
|
640918 |
1.89 |
|
|
|
|
|
|
|
|
|
|
2672208 |
7.89 |
|
|
|
|
|
|
|
|
|
|
3304312 |
9.76 |
|
|
1023317 |
3.02 |
|
|
857035 |
2.53 |
|
|
31200 |
0.09 |
|
|
106060 |
0.31 |
|
|
2100 |
0.01 |
|
|
645285 |
1.91 |
|
|
10000 |
0.03 |
|
|
62390 |
0.18 |
|
|
7856872 |
23.20 |
|
|
|
|
|
Total Public
shareholding (B) |
8497790 |
25.09 |
|
|
|
|
|
Total (A)+(B) |
33866077 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total
(A)+(B)+(C) |
33866077 |
100.00 |
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 |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
||
|
1 |
Coromandel International Limited |
2,47,98,112 |
73.22 |
|
2 |
Parry Chemicals Limited |
5,58,249 |
1.65 |
|
3 |
Pressmet Private Limited |
11,926 |
0.04 |
|
|
Total |
2,53,68,287 |
74.91 |
(*) 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
|
Sr. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
1 |
Harvard Consultants LLP |
1545429 |
4.56 |
|
|
2 |
DSP Blackrock Micro Cap Limited |
434719 |
1.28 |
|
|
3 |
Gangandeep Credit Capital Private Limited |
626917 |
1.85 |
|
|
4 |
Amee Parikh |
362260 |
1.07 |
|
|
|
Total |
2969325 |
8.77 |
BUSINESS DETAILS
|
Line of Business : |
Manufactures and Markets vide range of Fungicides, Herbicides,
Insecticides and Specialty Chemicals. |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Union Bank of India · State Bank of India · IDBI Bank Limited · The Ratnakar Bank Limited · Axis Bank Limited · Export-Import Bank of India · HDFC Bank Limited · Deutsche Bank |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Ultimate Holding
Company : |
· E.I.D Parry (India) Limited(***) |
|
|
|
|
Holding
company : |
· Coromandel International Limited (***) |
|
|
|
|
Subsidiary : |
· Sabero Australia Pty Limited · Sabero Europe B.V · Sabero Organics America S.A · Sabero Argentina S.A |
|
|
|
|
Jointly
Controlled Operations (JCO): |
· Markan Argoquimica Ltda($) |
|
|
|
|
Associate : |
·
Sabero Organics Philippines Asia Inc |
|
|
|
|
Other Related
Parties : |
· Sabero Echostar (India) Private Limited (*) · Harvard Finance Company Private Limited (*) · White Waves Capital LLP(*) · Tranquilitta Capital Advisors Private Limited(*) · Mosum Entreprises Limited (*) |
|
*** W.e.f. 17th December 2011. *Ceased to exist as related parties effective 17th December 2011. $ Ceased to
exist as related party effective 3rd October 2011. |
|
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
36000000 |
Equity Shares |
Rs.10/- each |
Rs.360.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33866077 |
Equity Shares |
Rs.10/- each |
Rs.338.661
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33866077 |
Equity Shares |
Rs.10/- each |
Rs.338.661
Millions |
|
|
Less: Call in Arrears |
|
Rs.0.110
Million |
|
|
|
|
|
|
|
Total |
|
Rs.338.551 Millions |
NOTE:
(i)
Reconciliation of number of Equity shares and amount outstanding at the
beginning and at the end of the year:
|
Particulars
|
As
at 31 March 2013 |
|
|
Number of Shares |
Rs. in Millions |
|
|
Per
last Balance sheet |
33,866,077 |
338.551 |
|
Issued
during year/calls in arrears |
-- |
-- |
|
Outstanding
at the end of the year |
33,866,077 |
338.551 |
(ii) Rights,
preferences and restrictions attached to equity shares
The Company
has one class of Equity Shares having a face value of Rs.10 /- each. Each
shareholder is eligible for one vote per share held. The dividend (if any)
proposed by the Board of directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in the case of
interim dividend. In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the Company in proportion to their
shareholdings.
(iii)
Details of shares held by the holding company, the ultimate holding company,
their subsidiaries and associates:
|
Particulars |
2013 |
|
(a)
Coromandel International Limited (Holding Company) |
24,798,112 |
|
(b)
Parry Chemicals Limited ( Subsidiary of Holding Company) |
558,249 |
|
(c)
Pressmet Private Limited |
11,926 |
(iv) Shares held by each shareholder
holding more than 5% of equity share capital:
|
Particulars |
As at 31, March 2013 |
|
|
|
Number of Shares |
% |
|
(a)
Coromandel International Limited (Holding Company) |
24,798,112 |
73.22% |
|
(b) Kalah
Corporation |
- |
- |
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 |
338.551 |
338.551 |
338.545 |
|
(b) Reserves & Surplus |
383.765 |
306.449 |
918.886 |
|
(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) |
722.316 |
645.000 |
1257.431 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
650.724 |
642.831 |
466.035 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
134.058 |
|
(c)
Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d)
long-term provisions |
9.514 |
13.221 |
11.612 |
|
Total
Non-current Liabilities (3) |
660.238 |
656.052 |
611.705 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1919.554 |
1429.562 |
1119.049 |
|
(b)
Trade payables |
1447.191 |
1059.385 |
618.112 |
|
(c)
Other current liabilities |
417.247 |
194.547 |
213.706 |
|
(d)
Short-term provisions |
6.762 |
4.230 |
5.969 |
|
Total
Current Liabilities (4) |
3790.754 |
2687.724 |
1956.836 |
|
|
|
|
|
|
TOTAL |
5173.308 |
3988.776 |
3825.972 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
1430.329 |
1159.386 |
1109.786 |
|
(ii)
Intangible Assets |
37.463 |
42.036 |
47.356 |
|
(iii)
Capital work-in-progress |
375.585 |
441.267 |
149.602 |
|
(iv) Intangible assets under development |
58.675 |
18.776 |
0.000 |
|
(b) Non-current
Investments |
82.095 |
82.095 |
25.744 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
154.124 |
208.934 |
62.477 |
|
(e)
Other Non-current assets |
13.014 |
2.483 |
0.000 |
|
Total
Non-Current Assets |
2151.285 |
1954.977 |
1394.965 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
875.540 |
599.774 |
754.287 |
|
(c)
Trade receivables |
1478.033 |
723.973 |
763.698 |
|
(d)
Cash and cash equivalents |
102.208 |
180.037 |
393.054 |
|
(e)
Short-term loans and advances |
450.869 |
460.081 |
519.968 |
|
(f)
Other current assets |
115.373 |
69.934 |
0.000 |
|
Total
Current Assets |
3022.023 |
2033.799 |
2431.007 |
|
|
|
|
|
|
TOTAL |
5173.308 |
3988.776 |
3825.972 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (Net) |
5148.293 |
3584.267 |
4107.977 |
|
|
|
Other Income |
9.475 |
27.957 |
26.154 |
|
|
|
TOTAL (A) |
5157.768 |
3612.224 |
4134.131 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3441.146 |
2323.320 |
2575.320 |
|
|
|
Purchases of stock-in-trade |
17.246 |
62.048 |
198.340 |
|
|
|
Changes in inventories of finished goods, work-in Progress and
stock-in-trade progress |
(165.663) |
39.354 |
(146.886) |
|
|
|
Employee benefits expense |
211.199 |
232.405 |
199.731 |
|
|
|
Other expenses |
1145.812 |
1298.705 |
892.138 |
|
|
|
Exceptional items |
17.434 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
4667.174 |
3955.832 |
3718.643 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
490.594 |
(343.608) |
415.488 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
298.946 |
292.494 |
154.748 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
191.648 |
(636.102) |
260.740 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
113.717 |
110.393 |
86.009 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
77.931 |
(746.495) |
174.731 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.615 |
(134.058) |
68.442 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
77.316 |
(612.437) |
106.289 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2733.821 |
1750.127 |
2189.270 |
|
|
TOTAL EARNINGS |
2733.821 |
1750.127 |
2189.270 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1297.398 |
919.907 |
1401.463 |
|
|
|
Stores & Spares |
0.107 |
0.000 |
1.420 |
|
|
|
Capital Goods |
9.042 |
0.733 |
0.000 |
|
|
|
Others |
8.030 |
19.558 |
|
|
|
TOTAL IMPORTS |
1314.577 |
940.198 |
1402.883 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.28 |
(18.08) |
3.14 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
1809.200 |
|
Total Expenditure |
|
|
1611.400 |
|
PBIDT (Excl OI) |
|
|
197.800 |
|
Other Income |
|
|
3.900 |
|
Operating Profit |
|
|
201.700 |
|
Interest |
|
|
74.800 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
126.900 |
|
Depreciation |
|
|
30.800 |
|
Profit Before Tax |
|
|
96.000 |
|
Tax |
|
|
0.000 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
96.000 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
96.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.50
|
(16.95) |
2.57 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.51
|
(20.83) |
4.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.69
|
(21.66) |
4.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
(1.16) |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.56
|
3.21 |
1.26 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.80
|
0.76 |
1.24 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITY
OF LONG TERM DEBT DETAIL:
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
||
|
Current Maturity of Long Term Borrowings |
315.237 |
108.679 |
NA |
NOTE:
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
Long Term
Borrowings |
|
|
|
Term Loans |
|
|
|
From Banks |
314.968 |
108.500 |
|
From Non Banking Finance Company |
0.269 |
0.179 |
|
|
|
|
|
Total |
315.237 |
108.679 |
A] Terms of
Repayment is as under
|
|
Loan Outstanding as at 31 March 2013 |
Loan Outstanding as at 31 March 2012 |
Repayment Schedule |
|
(i) Term
loans from Banks Axis Bank {Refer Note b(i)} |
301.005 |
-- |
To be repaid in
16 quarterly equal installments. First Payment was made in the month of May,
2013 and last payment shall be made in the month of January, 2017. |
|
Ratnakar Bank {Refer Note b(ii)} |
200.000 |
200.000 |
To be repaid in
8 equal quarterly installments. First payment was made in the month of June,
2013 and last payment shall be made in the month of March, 2015. |
|
Exim Bank {Refer Note b(iii)} |
187.500 |
200.000 |
To be repaid in
16 equal quaterly installments after moratorium of 24 months from date of
first disbursement. First payment was made in January, 2013 and last payment
shall be made in the month of October, 2016. |
|
ECB from Axis Bank {Refer Note b(iv)} |
191.409 |
219.683 |
To be repaid in
17 equal quarterly installments after moratorium of 5 quarters from initial
utilisation date. First payment
was made in the month of February, 2012 and the Last payment shall be made in
the month of February, 2016. |
|
Foreign Currency Loan from Exim Bank {Refer Note b(v)} |
85.515 |
80.130 |
To be repaid in
16 equal quaterly installments after moratorium of 24 months from date of
first disbursement. First payment was made in the month of January, 2013 and
the Last payment shall be made in the month of October, 2016. |
|
Industrial Development Bank of India |
-- |
2.500 |
To be repaid in
48 equal quaterly installments, first payment was made in December, 2000 and last
payment was made in May 2012 |
|
Union Bank of India |
-- |
25.311 |
To be repaid in
60 equal monthly installment, First payment was made in December, 2007 and
last payment made in May, 2012. |
|
Federal Bank |
-- |
15.303 |
To be repaid in 60
equal monthly installments. First payment was made in December, 2007 and last
payment was made in May, 2012. |
|
Dena Bank |
-- |
7.758 |
To be paid in 60 equal monthly installments. First payment was made in
December, 2007 and last payment made in May 2012. |
|
(ii) From Non Banking Finance Companies {Refer Note No. (b) (vi)} |
|
|
|
|
|
|
|
|
|
Tata Motors Finance Limited |
0.279 |
0.394 |
To be repaid in 59
equal monthly installments. First payment was made in July, 2010 and last
payment is due in May, 2015 |
|
Kotak Mahindra Prime Limited |
0.033 |
0.106 |
To be repaid in
35 equal monthly installments. First payment was made in October, 2010 and last
payment is due in August, 2013. |
|
Kotak Mahindra Prime Limited |
0.220 |
0.325 |
To be repaid in
59 equal monthly installments. First payment was made in February, 2010 and
last payment is due in December, 2014. |
|
|
|
|
|
|
|
965.961 |
751.510 |
|
------------------------------------------------------------------------------------------------------------------------------
|
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) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
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 |
------------------------------------------------------------------------------------------------------------------------------
UNSECURED LOANS
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
Short Term
Borrowings |
|
|
|
From Banks |
|
|
|
Packing Credit |
249.896 |
10.968 |
|
Buyers Credit |
159.133 |
0.000 |
|
Short Term Loan |
0.000 |
150.000 |
|
|
|
|
|
Other loans |
|
|
|
Commercial Paper (Maximum Balance outstanding during the year
Rs.500.000 Millions |
250.000 |
0.000 |
|
Inter Corporate Deposit |
150.000 |
0.000 |
|
|
|
|
|
Total |
809.029 |
160.968 |
------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
The year 2012-13
has been one of turnaround for the Company, against the backdrop of prior
period legacy challenges. The Company became fully compliant with the
regulatory norms on emission control. With the restrictive norms on capacity
utilization overcome, production levels improved and have been sustained at
higher levels. Operational efficiencies have been achieved across the board,
alongside.
During the year,
the Company focused on its key markets for driving its business growth; the
Company improved its product mix and capitalized on product level opportunities
opening up on regulatory approvals coming about; at the same time, the Company
continued to pursue product registrations for enhanced market growth.
For the year
ending 31st March, 2013, Operating Profit i.e. EBITDA is of the order of
508.028 Millions, as against Operating loss of 343.608 Millions incurred in the
preceding year 2011-12. Profit after Tax is 77.316 Millions for the year
2012-13, compared to Net Loss of 612.437 Millions reported for 2011-12.
SUBSIDIARY/
ASSOCIATE COMPANIES:
The Company has Subsidiary
Companies in Australia, Latin America, Argentina, Europe and an Associate
company in Philippines, primarily to pursue grant of licenses and product
registrations in conformity with the local laws of the respective
countries/regions.
During the year,
the Company has set-up a new subsidiary in Mexico.
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS ENVIRONMENT
The Agro-chemicals
Industry grows in tandem with the agricultural sector. Agricultural growth
itself is greatly affected by monsoon, especially in the agrarian economies
with large tracts of land-mass remaining uncovered with water irrigation
systems. Thus, a year of good monsoon is a harbinger of growth for the agrarian
economies, including Agro-chemicals Industry. Conversely, the vagaries of
monsoon tend to be a spoiler for the sector.
As is well known,
countries with large and growing population are forever under pressure for
higher food produce from their limited land mass; the arable land itself is
limited and getting shrunk all over the world in the wake of industrial
development and urbanization. The scenario makes it imperative for the
stakeholders in the agriculture space to look for and adopt new and more
efficient methods of crop protection and of maximizing their yields from the given
land resources under cultivation.
Agro-chemicals are
gaining acceptance worldwide with increasing awareness of their beneficial role
in minimizing losses due to pests and thereby improving yields. For the players
in the Agro-chemicals Industry, the challenge is to develop new products
through research and innovation for more efficient crop protection through safe
and efficient products and product applications across broad spectrum of
agricultural crops in all parts of the world.
AGRO-CHEMICALS
INDUSTRY OVERVIEW
Globally, the standout markets are the ones in Asia, Europe and Latin America
where the Agro-chemicals business has been reporting consistently high growth,
riding on increasing agricultural production and strong commodity prices. Latin
America at 13% is the highest growing region; Brazil happens to be the country
with highest consumption of Agro-chemicals and has a market size of about US $
9 Billion.
The Industry
growth has been around 7-8% globally in recent years, thanks in good part to good
monsoons over several years in most markets. In the year 2012, the industry
witnessed a growth of 6.4% on nominal terms and 8.9% on real terms and has
reached a turnover size of $ 47.3 billion. Along with nonagricultural
consumption the industry size is about 53 billion. Global Commodity prices have
been ruling firm at high levels since 2012, on the back of growing demand and
the situation is unlikely to be any different in 2013, given present levels of
global commodity stocks and growing demand. Going by the current scenario of
continuing high prices of commodity stocks, the expectation is that 2013 would
be a good year for the agrarian economies across the Globe. The Agro-chemicals
Industry is likewise expected to fare well in 2013. Over the next 5 years, the
Industry is expected to grow at about 5% annually, at which rate it should be a
$67 billion Industry by 2017 including nonagricultural consumption.
However, the
Industry has to contend with some recent developments and challenges
confronting it.
It thrives on R
and D and innovation leading to new products being introduced from time to
time. Multi National Companies (MNC) have been significant players driving
Research and Development (R & D) initiatives in the evolution of new
Agro-chemicals. However, in recent years, Genetically Modified (GM) seeds are
gaining acceptance for wider application across crops leading to a shift in
focus on the part of the MNC players and the levels of dedicated investments in
R & D for Agro-chemicals are coming down. This is an area of concern which
the Industry needs to address, impacting the introduction of new active
ingredients and new products in the Agro-chemicals space.
A fall-out
development has been in terms of share of 'off – patent' molecules going up and
it now stands at 77% of the total global Agro-chemicals business. 'Generics
'constitute as much as 51% of the Industry size. As a result of the falling
levels of R and D spends in Agro-chemicals, the share of 'off – patent'
generics in the total business is set to go up further. The scenario of 'off -
patent' generics driving volumes in Agro-chemicals business has a positive
outlook for countries like China and India where the manufacturing facilities
are largely geared towards generic products.
The other major
issue is the challenge to be and remain an environment-friendly Industry. There
is a huge focus worldwide on the responsibility of the manufacturing Industry
towards protecting the environment. The Industry response is critical to its
survival and growth. The Industry is witnessing serious efforts across the
globe in making agro-chemical products environment-friendly i.e. 'green'; an
example is Glyphosate variant' Non Tallow Amine Glyphosate ' which in its
'green' form is set to be introduced in the European markets.
Indian Agro-chemicals
Industry is the 11th largest globally and the sixth fastest growing market
across the world. However, consumption of crop protection products in India is
among the lowest in the world at 0.6 kg/ha compared to 13 kg/ha in China and 7
kg/ha in US. Crop losses in India due to pest attack are about 28% - among the
highest in the world. There is thus a huge scope and potential for wider and
intensive use of quality pesticides hand in hand with use of modern farming
techniques through education and creating awareness among the farming
community.
The Indian
agricultural industry, post a poor Rabi season in the previous year, witnessed
inconsistent monsoon in 2012-13, impacting farm economy across the States in
North, Gujarat, Maharashtra and some parts of Karnataka. Cotton acreage fell by
nearly 10% over the previous year and Paddy crop was affected due to lower
water storage in dams in key states. These conditions materially affecting the
Agro-chemicals Industry have been offset to some extent as a result of
increased consumption of herbicides and insecticides in Soya and Pulses
segments. Overall, the Industry estimated to be around 9000 Crores achieved a
modest growth of less than 5%. MNCs continue to maintain their market leadership
by virtue of new molecules.
The overall food
production is estimated to be close to 250 million tons in 2012-13, marginally
short of the record level of 252 million tons of food production achieved in
2011-12. Government continues to permit export of wheat and other selected
commodities whose stocks are far in excess of the buffer levels of storage.
Sustained demand for food crops and high commodity prices for most of the crops
(other than cotton) are expected to boost consumption of Agro-chemicals driving
the domestic industry towards double-digit growth, under normal monsoon
conditions.
COMPANY PERFORMANCE
The focus of the
Company in the year 2012-13 has been on improving performance across all
aspects of its business operations namely; enhance manufacturing capability and
consistency in production, becoming fully compliant with environmental
regulations, achieving competitiveness through efficiency in operations and
enhance market presence and access leading to accelerated and profitable growth.
In the year
2011-12, the Company had to undergo restrictions on capacity utilization due to
delay in obtaining environmental clearances; the Company had to incur high
spends on effluent treatment in order to meet the environmental regulations; it
had to resort to further borrowing to address capital expenditure requirements
and the infrastructure requirements for environment management. As a result,
the operational performance and financials were hugely impacted.
The remedial
measures initiated since the latter half of the year 2011 -12 and carried
through in the year 2012-13 have led to significant progress in the year
2012-13 in various critical areas of Company performance:
Performance
of MEEs got stabilized facilitating treatment of effluents at higher volumes of
operation at optimal costs and improving quality of bi-product generation.
Necessary
permissions for enhancing capacity utilization obtained from GPCB for up to a
maximum of 75% of the consented capacity on an annual basis as against the earlier
restriction, limiting it on monthly basis. This provides opportunity to
maximize returns by leveraging economies of scale and availability in peak
seasons that offer improved realizations at low working capital requirements.
· Capacity of key large volume molecules enhanced through de-bottlenecking to support higher volumes of production in peak season.
· New Product Propineb launched.
· Made a beginning in European registration with Mancozeb in France.
· Registrations leveraged in Latin American markets in regard to Chlorpyriphos and Acephate.
· The overall portfolio of registrations held by the Company increased to 296 on 16 Products spread over 54 countries (183 unique product / country combination).
· A new subsidiary set up in Mexico to cater to Central American markets
These initiatives
contributed to Production Volumes going up by 37% over 2011-12 and Sales
Turnover by 44% (Rs.5150.000 Millions as against Rs.3580.000 Millions in
2011-12). The share of export sales in total turnover rose to 59% against its
share of 52% in 2011-12, with higher thrust on exports.
OUTLOOK
For the year 2012,
it is estimated that the growth in fungicides sales, a key segment of Sabero
business, had outpaced the growth of the Industry (fungicides growth estimated
at about 11% plus as against the industry growth of about 9%). It is expected
that this trend of higher growth of fungicides is to continue in the coming
years.
China - the
dominant manufacturing country - is in the throes of regulatory changes calling
for stricter compliance with environment management issues. This is expected to
push upwards the cost of manufacture of Chinese agrochemical products in the
global markets.
The Chinese
currency Yuan is seen to be appreciating and would add to the cost of their
products, thereby impacting on their competitiveness in global markets. This is
expected to benefit the Indian agro-chemical Industry, in general.
The initiatives
taken by Sabero over the preceding couple of years, more so in 2012-13 and its
strategic plans going forward are expected to put the Company in a position to
capitalize on this opportunity significantly in the markets of its presence.
a) Contingent
Liabilities:
i. Claims against
the Company not acknowledged as debts
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
Income Tax |
62.104 |
47.495 |
|
Sales Tax |
14.822 |
14.822 |
|
Excise Matters |
6.770 |
5.121 |
|
Legal Cases |
13.672 |
13.061 |
ii. Bills discounted
and outstanding: Rs.66.000 Millions (2012- Rs.393.375 Millions), since realized
Rs.9.273 Millions (2012- Rs.55.427 Millions).
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10355944 |
27/04/2012 |
300,000,000.00 |
AXIS BANK
LIMITED |
FORT BR.,
UNIVERSAL INSU. BLDG., SIR P.M ROAD, FORT, MUMBAI, MAHARASHTRA - 400001,
INDIA |
B39685961 |
|
2 |
10355037 |
22/03/2012 |
350,000,000.00 |
THE RATNAKAR
BANK LIMITED |
SHAHUPURI,KOLHAPUR,
KOLHAPUR, MAHARASHTRA - 416001, INDIA |
B39424916 |
|
3 |
10333799 |
31/03/2012 * |
650,000,000.00 |
AXIS BANK
LIMITED |
FORT BR.,
UNIVERSAL INSU. BLDG., SIR P.M ROAD, FORT, MUMBAI, MAHARASHTRA - 400001,
INDIA |
B37970415 |
|
4 |
10333233 |
05/12/2011 |
540,000,000.00 |
STATE BANK OF
INDIA |
COMMERCIAL
BRANCH, N. G. N. VAIDYA MARG, MUMBAI, |
B31103369 |
|
5 |
10259770 |
18/07/2011 * |
100,000,000.00 |
EXPORT IMPORT
BANK OF INDIA |
FLOOR 21, CENTRE
ONE BUILDING, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA -
400005, INDIA |
B18671818 |
|
6 |
10259753 |
18/07/2011 * |
200,000,000.00 |
EXPORT IMPORT BANK
OF INDIA |
FLOOR 21, CENTRE
ONE BUILDING, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA -
400005, INDIA |
B18466367 |
|
7 |
10234764 |
18/07/2011 * |
414,000,000.00 |
AXIS BANK
LIMITED |
JEEVAN PRAKASH BUILDING,
SIR P. M. ROAD, FORT, MUMBAI, MAHARASHTRA - 400002, INDIA |
B18474981 |
|
8 |
90103548 |
28/10/2003 |
30,000,000.00 |
UNION BANK |
INDUSTRIAL
FINANCE BRANCH, 239 VIDHAN BHAVAN MARG |
- |
|
9 |
90103503 |
29/09/2000 |
10,000,000.00 |
UNION BANK |
INDUSTRIAL
FINANCE BRANCH, 239 VIDHAN BHAVAN MARG |
- |
|
10 |
90103183 |
22/06/2001 * |
22,500,000.00 |
ICICI LIMITED |
C 23 G BLOCK, BANDARA
KURALA COMPLEX BANDRA E, MUMBAI, MAHARASHTRA - 400051, INDIA |
- |
|
11 |
90102762 |
26/11/2012 * |
1,341,000,000.00 |
UNION BANK OF
INDIA (LEAD BANK) |
UNION BANK
BHAVAN, 239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021,
INDIA |
B64158033 |
|
12 |
80066218 |
15/06/1998 * |
60,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED |
163,BACKBAY
RECLAMATION, BUMBAI, MAHARASHTRA - |
- |
|
13 |
80066217 |
27/08/1996 |
166,000,000.00 |
UNION BANK OF
INDIA |
239,VIDHAN
BHAWAN, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
- |
|
14 |
90103026 |
26/11/2012 * |
1,341,000,000.00 |
UNION BANK OF
INDIA (LEAD BANK) |
UNION BANK BHAVAN,
239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B64157894 |
|
15 |
80066216 |
30/03/1995 |
65,500,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED |
163,BACKBAY RECLAMATION,
BOMBAY, MAHARASHTRA - |
- |
|
16 |
80066213 |
02/03/1994 |
10,000,000.00 |
SCICI LIMITED |
141 MAKER
TOWER,CUFFE PARSDE, BOMBAY, MAHARASHTRA - 400005, INDIA |
- |
* Date of charge modification
FIXED ASSETS:
· Freehold Land
· Leasehold Land
· Building
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
· Computer
· Office Equipment
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.63.46 |
|
|
1 |
Rs.99.42 |
|
Euro |
1 |
Rs.85.12 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.