MIRA
INFORM REPORT
|
Report Date : |
21.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
BINANI INDUSTRIES LIMITED |
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Registered
Office : |
601, Axis Mall, 6th Floor, Block-C, Action Area-I, Rajarhat, New Town, Kolkata -700156, West Bengal |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
02.08.1962 |
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Com. Reg. No.: |
21-025584 |
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Capital
Investment / Paid-up Capital : |
Rs. 296.152 Millions |
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CIN No.: [Company Identification
No.] |
L24117WB1962PLC025584 |
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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
: |
Manufacturing of Cement, Glass fibre,
Composites and many other Engineered products . |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 7900000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Binani Industries Limited is the holding company of the manufacturing
businesses of the Braj Binani Group. It is an established company having a satisfactory track record. There appears huge external borrowings recorded by the company. There
also appears some dip in the profit of the company. However, the rating take into consideration diversified business
operations, experience of the promoters in the cement, zinc and glass fibre
business and Binani’s strong brand image. Trade relations are reported as fair. Business is active. Payment are
reported to be slow but correct. The company can be considered normal 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.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The report
says that the adverse effects of rupee depreciation are likely to be offset by
the gains in the exports performance due to improved external competitiveness.
Since May this year, the local currency has depreciated substantially and fell
to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with advanced
trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities: “BBB-” |
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Rating Explanation |
Have moderate degree of safety and carry moderate credit risk. |
|
Date |
22.04.2013 |
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.
LOCATIONS
|
Registered Office : |
601, Axis Mall, 6th Floor, Block-C, Action Area-I, Rajarhat,
New Town, Kolkata -700156, West Bengal, India |
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Tel. No. : |
91-33-40161800/ 32562726 |
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Fax No. : |
91-33-40161812 |
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E-Mail : |
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Website : |
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Corporate Office : |
Mercantile Chambers, 12, J N Heredia Marg, Ballard Estate, Mumbai – 400001, Maharashtra, India |
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Tel. No. : |
91-22-2269 0506 - 10/ 22640040-44 |
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Fax No. : |
91-22-22690003/ 22640045 |
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E-Mail : |
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Subsidiaries’ Plant
Locations : |
1. Binani
Cement Limited a) Binanigram, Pindwara, Sirohi –307031, Rajasthan, India b) Village Sirohi, Taluka:Neem Ka Thana, Dist-Sikar, Rajasthan, India 2. Binani
Zinc Limited Binanipuram, Ernakulam - 683502, Kerala, India 3. Goa Glass
Fibre Limited Colvale, Bardez – 403513, Goa, India 4. BT
Composites Limited C5 to C9, Madkaim Indl.Est. Mardol Post - 403404, Goa, India 5. 3B
Fibreglass SPRL. Route de Maestricht 67, 4651, Battice, Belgium 6. 3B
Fibreglass AS Tollenesveien 60, 4760, Birkeland, Norway 7. CPI
Binani Inc. 1700 Wilkie Drive Winona, MN 55987, USA 8. Shandong
Binani Rong’An Cement Co.Ltd. Fujiazhuang,Dong Guan Town, Ju Country, Rizhao City, Shandong Nagar,China 9. Binani
Cement Factory LLC. Jabel Ali, Dubai. |
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Mumbai Project Office: |
Dubash House, 3rd Floor, 15, J.N Heredia Marg, Left Wing,
Ballard Estate, |
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Tel. No. : |
91-22 - 30725301 / 2 / 3 |
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Fax No. : |
91-22 - 22696131 |
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E-Mail : |
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Udaipur Project Office: |
17a, Old Fathepura, Udaipur - 313004, Rajasthan, India. |
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Tel. No. : |
91-294-2454201 / 2 / 3295670 |
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Fax No. : |
91-294-2454203 |
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E-Mail : |
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Branch Office: |
Flat No 1009, Ansal Bhavan, 16 K.G. Marg, New Delhi - 110001, India. |
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Tel. No. : |
91-11-2331 4225 / 24 |
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Fax No. : |
91-11-2331 4226 |
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E-Mail : |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Braj Binani |
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Designation : |
Chairman |
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Name : |
Mr. Sunil Sethy |
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Designation : |
Executive Vice-Chairman & Managing Director |
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Name : |
Mr. N.C.Singhal |
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Designation : |
Director |
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Name : |
Mrs. Nidhi Singhania |
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Designation : |
Director |
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Date of Birth/Age : |
29 Years |
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Qualification : |
B.A with specialisation in Economics |
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Date of Appointment : |
23.04.2009 |
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Other Directorship
: |
· Binani Cement Limited Binani
Metals Limited Shangdong
Binani Rongon Cement Co. Limited, China |
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Name : |
Mr. Jitender Balakrishnan |
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Designation : |
Director |
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Name : |
Mr. V.Subramanian |
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Designation : |
Director |
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Name : |
Mr. Sudhakar Rao |
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Designation : |
Director |
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Name : |
Miss Shradha Binani |
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Designation : |
Director |
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Date of Birth/Age : |
25 years |
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Qualification : |
Bachelors Degree in Science and International Politics |
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Date of Appointment : |
05.08.2012 |
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Other Directorship
: |
· Binani Cement Limited Binani
Metals Limited (Alternate Director) 3B
Binani Glassfibre Sarl 3B
Fibreglass SPRL Project
Bird Holding II 3B
Fibreglass Norway AS CPI
Binani Inc. |
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Name : |
Mr. Rahul Asthana |
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Designation : |
Director |
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Date of Birth/Age : |
60 Years |
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Qualification : |
B. Tech, MBA |
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Date of Appointment : |
06.04.2013 |
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Other Directorship
: |
· Mumbai Metro Rail One Limited City
and Industrial Corporation Limited (CIDCO) Maharashtra
State Road Development Corporation (MSRDC) |
KEY EXECUTIVES
|
Audit Committee : |
· Mr. Jitender Balakrishnan Mr.
N.C.Singhal Mr.
V. Subramanian |
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Core Management
Committee: |
· Mr. Braj Binani - Chairman Mr.
Sunil Sethy - Executive Vice-Chairman and Managing Director Mr.
Sushil Bhatter - Managing Director, Binani Zinc Limited Mrs.Nidhi
Singhania - Director Miss
Shradha Binani - Director Mr.
M.K.Chattopadhyaya – Executive Director (Secretary to the Committee) |
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Name : |
Mr. R. Venkiteswaran |
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Designation : |
Executive Director and Chief Financial Officergroup Control Accounts |
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Name : |
Mr. K.K.Saraf |
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Designation : |
President and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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1201615 |
4.06 |
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13921064 |
47.04 |
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15122679 |
51.10 |
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|
53125 |
0.18 |
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|
53125 |
0.18 |
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Total shareholding of Promoter and Promoter Group (A) |
15175804 |
51.28 |
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(B) Public Shareholding |
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|
785985 |
2.66 |
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|
90 |
0.00 |
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437189 |
1.48 |
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|
3325 |
0.01 |
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|
3325 |
0.01 |
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|
1226589 |
4.14 |
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|
2479590 |
8.38 |
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|
6958478 |
23.51 |
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|
2681852 |
9.06 |
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|
1074112 |
3.63 |
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|
82349 |
0.28 |
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|
4060 |
0.01 |
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|
982553 |
3.32 |
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|
5150 |
0.02 |
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|
13194032 |
44.58 |
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Total Public shareholding (B) |
14420621 |
48.72 |
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Total (A)+(B) |
29596425 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
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|
0 |
0.00 |
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|
0 |
0.00 |
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0 |
0.00 |
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Total (A)+(B)+(C) |
29596425 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Cement, Glass fibre, Composites
and many other Engineered products . |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
· EXIM Bank Punjab
National Bank IDBI
Bank Limited Syndicate
Bank Indian
Overseas Bank Dena
Bank |
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Facilities : |
Note: a Export Import Bank of India - Foreign Currency Loan - Outstanding Rs.2208.646 Millions (USD 40.245 mio) (Previous Year Rs.2073.825 Millions - USD 40.245 mio). The loan carries interest @ 6 Months LIBOR plus 800 bps p.a. T he loan is repayable after 3 years from the date of drawdown , i.e.8th December, 2011 in 4 equal semi annual instalments of USD 10.06 mio each. The loan is secured/to be secured against (a) Second Pari passu charge on pledge of 100% shares of 3B Binani Glass Fibre S.a.r.l. held by the Company (b) exclusive charge on royalty and dividend payment to be received from Binani Cement Limited (c) second charge on the entire assets of Project Bird Holding S.a.r.l and its subsidiaries (d) second charge on the pledge of 100% shares of Project Bird Holding S.a.r.l and its subsidiaries (e) pledge of 94,50,000 equity shares of Binani Cement Limited held by the Company on exclusive charge basis (f) First paripassu charge on the entire fixed assets of Binani Zinc Limited including immovable properties present and future (g) Corporate Guarantee of Binani Cement Limited and Binani Zinc Limited and (h) Personal Guarantee of a promoter director of the Company. b Export Import Bank of India - Foreign Currency Loan-Outstanding Rs.1619.267 Millions (USD 29.506 mio) (Previous Year Nil). The loan carries interest @ 6 Months LIBOR plus 800 bps p.a. T he loan is repayable after 3 years from the date of drawdown, i.e. 30th July, 2012 in 16 equal quarterly instalments of USD 1.8441 mio each. The loan is secured / to be secured against (a) pledge of 2,05,00,000 equity shares of Binani Cement Limited held by the Company on exclusive charge basis (b) exclusive charge on royalty and dividend payment to be received from Binani Cement Limited (c) Corporate Guarantee of Binani Cement Limited and Binani Zinc Limited. (d) Second charge on pledge of shares of Project Bird Holding S.a.r.l. (e) Second pari passu charge on pledge of shares and / or other instruments of subsidiaries of Project Bird Holding S.a.r.l (f) the Personal Guarantee of a promoter director of the Company. c IFCI Limited - Outstanding Rs. 3500.000 Millions (Previous Year Rs. 3500.000 Millions). The Loan carried interest @ 13.25% p.a. IFCI has revised the interest @ 15.50% w.e.f. 17th January, 2013. The Company has requested IFCI to maintain the interest rate @13.25%, based on the original sanction , though interest @ 15.50% has been paid under protest. The loan is repayable in 4 quarterly instalments of Rs.875.000 Millions each, after three years from the date of drawdown i.e. 17th January, 2011. The Loan is secured against pledge of 8,01,40,000 equity shares of Binani Cement Limited (BCL), and post dated cheques issued for interest and principal repayment. d Syndicate Bank- Outstanding Rs. 43.478 Millions (Previous Year Rs. 565.217 Millions) Loan carries interest @ 13.5% p.a. The loan is repayable in 23 equal monthly instalments of Rs. 21.739 Millions from the date of drawdown 30th June, 2010. Out of total outstanding Rs. Nil shown under Long term borrowing and Rs.
43.478 Millions shown under Other current liabilities. (Previous Year Rs.
43.481 Millions - Long term borrowings and Rs. 521.736 Millions - Other
Current Liabilities). |
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Banking
Relations : |
-- |
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Financial Institution: |
IFCI Limited |
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Auditors : |
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|
Name : |
Kanu Doshi Associates Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
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Legal Advisors: |
· AZB and Partners, Mumbai Udwadia
Udeshi and Argus Partners, Mumbai |
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Subsidiaries / step
down subsidiaries where control exists : |
· Binani Cement Limited (BCL) Binani
Zinc Limited (BZL) Goa
Glass Fibre Limited (GGFL) B
T Composites Limited (BTCL) Wada
Industrial Estate Limited (WIEL) Binani
Energy Private Limited (BEPL) CPI
Binani, Inc. U.S.A (CPI), 3B
Binani Glass Fibre SARL, Luxembourg BIL
Holding II SARL Luxembourg BIL
Holding III SARL, Luxembourg Sankalp
Holdings Limited (Cyprus) Binani
Global Cement Holdings Private Limited (Singapore) BIL
Infratech Limited, Binani
Infrastructure Mauritius Limited, Mauritius Abhinav
Holding Limited, Cyprus (AHL) R.B.G.
Minerals Industries Limited BZ
Minerals (Australia) Pty Limited, Australia BZ
Minerals (Luxembourg) Sarl Krishna
Holding Pte. Limited, Singapore (KHL) Shandong
Binani Rong’an Cement Co. Limited, China (SBRCC) Mukundan
Holdings Limited British
Virgin Island Binani
Cement Factory LLC, UAE (BCFLLC), Murari
Holdings Limited British
Virgin Island (MuHL) Bhumi
Resources (Singapore) Pte Limited Singapore Binani
Cement Factory (Mauritius) Limited, Mauritius Binani
Cement Factory (SFZ) Limited, Sudan BC
Tradelink Limited, Tanzania Binani
Cement Co. Limited, (South Sudan) Binani
Cement Co. Limited, (Sudan) Binani
Cement Factory (Kenya) Limited, Kenya Binani
Cement SARL, Djibouti Binani
Cement (Uganda) Limited, Uganda PT
Anganna Energy Resources, Indonesia Binani
Cement Company WLL, Kuwait Swiss
Merchandise Infrastructure Limited Merit
Plaza Limited Binani
Readymix Concrete Limited Binani
Mineral Resources ( Mangolia) LLC Weighbridge
Investments (Pty) Limited Botswana Christo
schutte Investment Number Nine (Pty) Limited. Namibia Binani
Cimentos (Mozambique) LDA Transafrica
Cement Limited (Mauritius) Rightside
Investment Pty. Limited Project
Bird Holding S.a.r.l.(Luxembourg) Project
Bird Holding II S.a.r.l.(Luxembourg) Project
Bird Holding III B S.a.r.l.(Luxembourg) 3B
- Fibreglass SPRL (Belgium) 3B
- Fibreglass A/S (Norway) TunFib
SARL (Tunisia). |
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Enterprises where
Key Management Personnel have got significant influence: |
· Mr. Braj Binani in Binani Metals Limited Sambhaw
Holdings Limited K.
B. Vyapar Private Limited Triton
Trading Co. Private Limited Lexus
Holding and Finance Private Limited Dhaneshwar
Solutions Private Limited Media
magix (A Division of Asian Industry and Information Service Private Limited) Nirbhay
Management Services Private Limited Miracle
Securities Private Limited Mr.
Sunil Sethy in Radix Technologies |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
60,00,000 |
Preference Shares |
Rs.100/- each |
Rs. 600.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,95,96,425 |
Equity Shares |
Rs.10/- each |
Rs. 295.964 Millions |
|
|
Add: Amount paid up on forfeited Shares |
|
Rs. 0.188 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 296.152
Millions |
Note
Terms /Rights
attached to Equity Shares
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2013, the amount of dividend proposed for distribution to equity shareholders is Rs.3 per share (Previous year – Rs.3 per share )
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Details of shareholders holding more than 5% of Share Capital in
the Company
|
Particulars |
31st March, 2013 |
|
|
No. of
Equity Share |
% of holding |
|
|
Equity Shares of
Rs. 10 each fully paid: |
|
|
|
Dharmik Commodeal Private Limited |
4,758,750 |
16.08 |
|
Vijayshree Holdings Private Limited |
4,288,300 |
14.49 |
|
K.B.Vyapar Private Limited |
3,930,930 |
13.28 |
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 |
296.152 |
296.152 |
296.152 |
|
(b) Reserves & Surplus |
1685.723 |
1743.275 |
1672.022 |
|
(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) |
1981.875 |
2039.427 |
1968.174 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
7327.913 |
5617.306 |
4065.200 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
7.489 |
8.295 |
11.300 |
|
Total Non-current Liabilities (3) |
7335.402 |
5625.601 |
4076.500 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
6533.900 |
4307.500 |
2050.000 |
|
(b) Trade payables |
131.751 |
119.615 |
5.189 |
|
(c) Other current
liabilities |
146.493 |
593.399 |
480.241 |
|
(d) Short-term provisions |
106.810 |
106.672 |
90.320 |
|
Total Current Liabilities (4) |
6918.954 |
5127.186 |
2625.750 |
|
|
|
|
|
|
TOTAL |
16236.231 |
12792.214 |
8670.424 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
69.151 |
61.461 |
28.540 |
|
(ii) Intangible Assets |
3.124 |
1.303 |
0.000 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
5.367 |
0.000 |
0.000 |
|
(b) Non-current Investments |
8892.221 |
10708.491 |
7183.216 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
710.081 |
416.703 |
296.357 |
|
(e) Other Non-current assets |
0.221 |
0.205 |
69.497 |
|
Total Non-Current Assets |
9680.165 |
11188.163 |
7577.610 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
5060.281 |
0.000 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
185.907 |
25.054 |
0.000 |
|
(d) Cash and cash equivalents |
117.899 |
1313.315 |
934.681 |
|
(e) Short-term loans and
advances |
511.554 |
261.756 |
158.183 |
|
(f) Other current assets |
680.425 |
3.926 |
0.000 |
|
Total Current Assets |
6556.066 |
1604.051 |
1092.864 |
|
|
|
|
|
|
TOTAL |
16236.231 |
12792.214 |
8670.474 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1792.816 |
1392.882 |
351.000 |
|
|
|
Other Income |
80.603 |
507.523 |
508.101 |
|
|
|
TOTAL (A) |
1873.419 |
1900.405 |
859.101 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Advertisement and brand building expenses |
485.287 |
454.794 |
22.520 |
|
|
|
Royalty expenses |
126.767 |
95.255 |
0.000 |
|
|
|
Employee benefits expenses |
288.914 |
225.841 |
187.117 |
|
|
|
Other expenses |
283.968 |
213.261 |
192.464 |
|
|
|
Exceptional Items |
(411.187) |
(362.670) |
0.000 |
|
|
|
TOTAL (B) |
773.749 |
626.481 |
402.101 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
1099.670 |
1273.924 |
457.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
938.400 |
1067.201 |
338.397 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
161.270 |
206.723 |
118.603 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
11.917 |
6.463 |
4.001 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
149.353 |
200.260 |
114.602 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
25.520 |
63.442 |
(0.015) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
123.833 |
136.818 |
114.617 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(260.325) |
(293.950) |
(319.778) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
88.789 |
88.789 |
88.789 |
|
|
|
Provision for Dividend DistributionTax |
15.090 |
14.404 |
0.000 |
|
|
|
Transferred to General Reserve |
12.400 |
13.700 |
11.500 |
|
|
|
Transferred from General Reserve |
(12.400) |
(13.700) |
(11.500) |
|
|
BALANCE CARRIED
TO THE B/S |
(240.371) |
(260.325) |
(293.950) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sale of investment |
789.520 |
758.590 |
NA |
|
|
|
Fees for management services rendered |
0.000 |
25.054 |
NA |
|
|
|
Interest received |
23.293 |
11.247 |
NA |
|
|
TOTAL EARNINGS |
812.813 |
794.891 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
4.18 |
4.62 |
3.87 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2013 |
30.09.2013 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
321.700 |
325.500 |
|
Total Expenditure |
|
273.200 |
364.600 |
|
PBIDT (Excl OI) |
|
48.500 |
(39.100) |
|
Other Income |
|
24.200 |
31.400 |
|
Operating Profit |
|
72.700 |
(7.700) |
|
Interest |
|
277.100 |
325.800 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(204.400) |
(333.500) |
|
Depreciation |
|
2.700 |
0.2.800 |
|
Profit Before Tax |
|
(207.100) |
(336.300) |
|
Tax |
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(207.100) |
(336.300) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(207.100) |
(336.300) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.61
|
7.20 |
13.34 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.33
|
14.38 |
32.65 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.04
|
9.61 |
7.71 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.10 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
6.99
|
4.87 |
3.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.95
|
0.31 |
0.42 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
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 |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
CALCUTTA HIGH COURT
CASE STATUS INFORMATION SYSTEM
Case Status : Pending
|
Status of INCOME TAX APPEAL (ITA) 131 of 2009 COMMISSIONER OF INCOME TAX (CENTRAL)-I Vs. BINANI INDUSTRIES LIMITED Pet's Adv. : S. S. SARKAR Res's Adv. : Court No. : 17 Last Listed On : Monday, March 15, 2010 Category : INCOME TAX : REVENUE
Case Updated on:
Wednesday, May 09, 2012 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
80008075 |
29/01/2001 * |
198,500,000.00 |
THE INDUSIAND
BANK LIMITED |
HOECHST HOUSE,
NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
- |
|
2 |
90249742 |
10/07/1987 * |
11,400,000.00 |
INDUSTRIAL
FINANCE CORPORATION OF INDIA |
BANK OF BARODA
BUILDING, 16; SANSAD MARG, NEW DELHI - 110001, INDIA |
- |
|
3 |
90249735 |
10/07/1987 * |
20,000,000.00 |
STATE BANK OF
TRAVANCORE |
POST BOX NO.34,
TRIVANDRUM - 695001, KERALA, INDIA |
- |
|
4 |
90249685 |
28/04/1986 * |
15,000,000.00 |
INDUSTRIAL
RECONSTRUCTION BANK OF INDIA |
19; NETAJI
SUBHAS ROAD, KOLKATA - 700001, WEST BENGAL, INDIA |
- |
|
5 |
90249670 |
28/04/1986 * |
27,500,000.00 |
THE INDUSTRIAL
CRDIT AND INVESTMENT COMPANY OF INDIA LIMITED |
163; BACKBAY
RECLAMATION, BOMBAY - 400020, MAHARASHTRA, INDIA |
- |
|
6 |
90249439 |
26/03/1984 * |
36,770,000.00 |
BANK OF BARODA |
CAWASJI PATEL
STREET; FORT, BOMBAY, MAHARASHTRA, INDIA |
- |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
From Banks |
43.478 |
565.217 |
|
Less: Current maturities shown under other current liabilities |
(43.478) |
(521.736) |
|
SHORT TERM
BORROWINGS |
|
|
|
Inter Corporate
Deposits |
|
|
|
From Subsidiaries-repayable on demand |
5954.400 |
4195.000 |
|
From Others |
579.500 |
112.500 |
|
Total |
6533.900 |
4350.981 |
CORPORATE
INFORMATION
Subject is a public limited company (herein after called ‘Company’) domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is listed on the Bombay Stock Exchange(BSE), National Stock Exchange(NSE) and the Calcutta Stock Exchange (CSE).
REVIEW OF OPERATIONS
The Company, being a Holding Company, has no manufacturing activities. Its main revenuestreams are the income from management services fees for the management and supportservices provided to its major Subsidiaries, Income from Royalty for use of itsIntellectual Property Rights such as Brand Logo and Trade Mark by the Subsidiaries and Brand promotion/ development expenses incurred by the Company and dividend frominvestments.
For providing management and support services to the Subsidiaries, the Company hascreated a Talent Pool comprising of Professionals with rich experience in differentfunctional areas. This facilitates the Company in providing expertise and support servicesto its Subsidiaries in the areas of Accounts, Finance, Treasury, Audit, Forex / Commodity,Risk Management, IT, HR, Secretarial and Legal, Purchase, Taxation, Corporate Strategy, Media Servicesetc. The Company regularly takes initiatives in Brand Promotion and Brand Buildingexercise and spends considerable amount on advertisement which help the Subsidiariesderive significant benefits.
During the year, the Company earned total Revenue of Rs. 1873.419 Millions which included Management Services fee of Rs. 525.150 Millions, Royalty of Rs. 1267.666 Millions and Interest/Dividend and other income amounting to Rs. 80.603 Millions.
During last year, the Company had sold 49% stake in its Subsidiary, Goa Glass Fibre Limited (GGFL) to 3B Binani Glass Fibre S.a.r.l. (3B Binani), a wholly owned subsidiary ofthe Company in order to consolidate its Glass Fibre business and to leverage on technologyand product strength of 3B Fibreglass SPRL, Belgium. During the year, theCompany sold its balance 51% stake in GGFL to 3B Binani, which resulted in profit of Rs. 411.216 Millions.
For the year, 2012-13, the Company earned Profit after Tax of Rs. 123.833 Millions asagainst Rs. 136.818 Millions in the previous year.
OUTLOOK
The year 2012-13 has been a challenging year particularly for Glass Fibre and Zinc business. Glass Fibre business was affected due to uncertainty in the European economy,Chinese imports despite antidumping duty, high inventory and low capacity utilisation etc.Profitability in case of Zinc business was severely affected due to various factors whichincluded lower zinc prices on LME, variations in Exchange rates and steep hike in power tariff etc.
Various steps have been taken to improve the revenue and profitability of the GlassFibre and Zinc business in particular, which include change in product-mix, efficiency inmanufacturing operations through technological improvement etc. All these steps areexpected to start yielding returns in the coming years which wouLd heLp the Company earndividend on its investments in the years to come.
The Directors have aLso initiated various strategic measures in the year under reviewto improve the earnings and the overall profitability of the Company. In this direction,the Directors have decided, 'in- principle' to divest the Company's stake in Binani CementLimited (BCL) to the extent of 40% of the share capital of BCL, which will improve thecash flow of the Company, reducing the interest cost significantly by retiring some of itsdebts. The Company initiated necessary steps such as appointment of Advisors, InvestmentBanker, Legal Advisor, preparation and circulation of information Memorandum to keyfinancial Investors. Both Vendor due -diligence and discussion with prospective Investorsare in progress. The entire process is expected to be completed during second half of thecurrent Financial Year.
The Directors therefore, are hopeful of much improved performance for the currentFinanciaL Year, barring unforeseen circumstances.
RECOGNITION AND
REWARDS
The efforts made and various initiatives taken by the Company's Subsidiaries have been well recognised by the prestigious Bodies/Government. Some of such significantachievements are as under:
BCL
• Rajiv Gandhi National Quality Excellence – 2010 Commendation Certificate from Bureau of Indian Standards, New DeLhi, for quaLityexceLLence
• Bhamashah Award from Department of Education, Govt. of Rajasthan
• NSCI Safety Award - 2011 from NationaL Safety CounciL, Mumbai fordeveLoping and impLementing effective Management System and procedures and achievinggood performance in Organisation Safety and HeaLth for the assessment period of threeyears -2008 to 2010.
BZL
• National CSR Excellence Award from ASSOCHAM
• Green Tech Environment Excellence Award.
CONTINGENT LIABILITIES NOT PROVIDED FOR:
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
a) Claims against the Company not acknowledged as debts in respect of certain Income Tax matters. |
546.465 |
528.005 |
|
b) Commitments relating to the purchase of customised software application. |
2.500 |
12.682 |
|
c) Corporate Guarantees given to Financial Institutions and Banks in respect of loans to subsidiaries / step down subsidiaries of the Company. |
26664.800 |
24292.500 |
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED
30.09.2013
|
|
Particulars |
Quarter Ended |
||
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
Income from
Operations |
|
|
|
|
|
(a) Fees for management services rendered |
134.100 |
131.900 |
266.000 |
|
|
(b) Royalty Income |
191.400 |
189.800 |
381.200 |
|
|
Total Income from Operations (Net) |
325.500 |
321.700 |
647.200 |
|
2 |
Expenditure |
|
|
|
|
|
a) Employee Benefits Expenses |
81.800 |
85.200 |
167.000 |
|
|
b) Advertisement and brand building expenses |
140.700 |
94.700 |
235.400 |
|
|
c) Royalthy Expenses |
19.100 |
19.000 |
38.100 |
|
|
d) Depreciation and amortisation Expense |
2.800 |
2.700 |
5.500 |
|
|
e) Other Expenses |
123.000 |
74.300 |
197.300 |
|
|
Total Expenses |
367.400 |
275.900 |
643.300 |
|
3 |
Profit/(Loss) from Operations before Other Income, Finance Costs, Exceptional Items & extraordinary items (1-2) |
(41.900) |
45.800 |
3.900 |
|
4 |
Other Income |
31.400 |
24.200 |
55.600 |
|
5 |
Profit/(Loss) from ordinary activities before Finance Costs, Exceptional & extraordinary items (3+4) |
(10.500) |
70.000 |
59.500 |
|
6 |
Finance Costs |
325.800 |
277.100 |
602.900 |
|
7 |
Profit/(Loss) from ordinary activities before Exceptional & extraordinary items (5-6) |
(336.300) |
(207.100) |
(543.400) |
|
8 |
Exceptional Items (Net) |
-- |
-- |
-- |
|
9 |
Profit/(Loss) from ordinary activities before tax & extraordinary items (7+8) |
(336.300) |
(207.100) |
(543.400) |
|
10 |
Tax Expense |
-- |
-- |
-- |
|
11 |
Net Profit/(Loss) from ordinary activities after tax but before extraordinary items (9-10) |
(336.300) |
(207.100) |
(543.400) |
|
12 |
Extraordinary Items (net of tax expenses) |
-- |
-- |
-- |
|
13 |
Net Profit/ (Loss) for the period (11+12) |
(336.300) |
(207.100) |
(543.400) |
|
14 |
Paid up Equity Share Capital (Face Value of Rs.2/- Each) |
296.200 |
296.200 |
296.200 |
|
15 |
Reserves excluding Revaluation Reserves as per Balance Sheet |
-- |
-- |
-- |
|
16.i |
Earning Per Share (Rs. 10 each) (before extraordinary i) |
|
|
|
|
|
(a) Basic |
(11.36) |
(7.00) |
(18.36) |
|
|
(b) Diluted |
(11.36) |
(7.00) |
(18.36) |
|
|
|
|
|
|
|
16.ii |
Earning Per Share(of Rs. 10 each) (after extraordinary items) (Not Annualise): |
|
|
|
|
|
(a) Basic |
(11.36) |
(7.00) |
(18.36) |
|
|
(b) Diluted |
(11.36) |
(7.00) |
(18.36) |
|
|
Particulars |
Quarter Ended |
|||
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
|
a. |
Number of shares |
14420621 |
14420621 |
14420621 |
|
|
b. |
Percentage of shareholding |
48.73 |
48.73 |
48.73 |
|
2 |
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 |
15175804 |
15175804 |
15175804 |
|
|
|
|
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100 |
100 |
100 |
|
|
|
Percentage of shares (as a % of the total share capital of the Company) |
51.27 |
51.27 |
51.27 |
|
Particulars |
Quarter ended 30.09.2013 |
|
B INVESTOR COMPLAINTS (Nos.) |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
8 |
|
Disposed of during the quarter |
8 |
|
Remaining unresolved at the end of the quarter |
Nil |
|
|
Particulars |
Quarter Ended |
||
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1) |
Segment Revenue |
|
|
|
|
a) |
Fees for Management Services rendered |
134.100 |
131.900 |
266.000 |
|
b) |
Royalty |
191.400 |
189.800 |
381.200 |
|
c) |
Interest Income |
31.000 |
23.800 |
54.900 |
|
d) |
Unallocated |
0.400 |
0.400 |
0.700 |
|
|
Total |
356.900 |
345.900 |
702.800 |
|
|
Less: Inter Segment Revenue |
-- |
-- |
-- |
|
|
Net Segment Revenue |
356.900 |
345.900 |
702.800 |
|
|
|
|
|
|
|
2) |
Segment Result Profit before tax, extraordinary and exceptional items |
(336.300) |
(207.100) |
(543.400) |
|
3) |
Capital Employed
(Segment Assets – Segment Liabilities ) |
17334.100 |
16745.000 |
17334.100 |
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
|
Particular |
30.09.2013 |
|
|
|
(Unaudited) |
|
A |
EQUITY AND
LIABILITIES |
|
|
1 |
Shareholders’
funds |
|
|
|
(a) Share capital |
296.200 |
|
|
(b) Reserves and surplus |
696.200 |
|
|
Sub-total
|
992.400 |
|
|
|
|
|
2 |
Non-current
liabilities |
|
|
|
(a) Long-term borrowings |
6161.00 |
|
|
(b) Deferred Tax Liabilities (Net) |
10.400 |
|
|
Sub-total
|
6171.400 |
|
|
|
|
|
3 |
Current
liabilities |
|
|
|
(a) Short-term borrowings |
8283.100 |
|
|
(b)Trade payables |
94.200 |
|
|
(c)Other current liabilities |
2036.900 |
|
|
(d)Short-term provision |
18.300 |
|
|
Sub-total - Current
liabilities |
10432.500 |
|
|
TOTAL - EQUITY AND LIABILITIES |
17596.300 |
|
|
|
|
|
B |
ASSETS |
|
|
1 |
Non-current
assets |
|
|
|
(a) Fixed assets |
69.800 |
|
|
(b) Non-current investments |
9193.400 |
|
|
(c) Long-term loans and advances |
1067.100 |
|
|
(d) Other non-current assets |
0.200 |
|
|
Sub-total
- Non-current assets Current assets |
10330.500 |
|
2 |
Current assets |
|
|
|
(a) Current Investments |
5060.300 |
|
|
(b) Trade receivables |
275.000 |
|
|
(c) Cash and cash equivalents |
109.700 |
|
|
(d) Short-term loans and advances |
758.200 |
|
|
(e) Other current assets |
1062.600 |
|
|
Sub-total
- Current assets |
7265.800 |
|
|
TOTAL
- ASSETS |
17596.300 |
Note
1. The company is a holding company having subsidiaries which are mainly in manufacturing activities. The company provides corporate support services and brand building promotion activities to its subsidiaries, from which company earns royalty and management fees.
2. Finance Cost for the Half Year ended 30th September, 2013 and year ended 31st March 2013 exclude interest of Rs. 359.600 Millions and Rs. 654.500 Millions respectively on borrowings for holding the current portion of Company’s investment in its subsidiary Binani Cement Limited which have been included under other current assets. The auditors in their limited review report have qualified the treatment of expenditure of Rs. 1014.100 Millions upto September 13, as being a departure from the Accounting Standards. The company has classified the interest as unamortized expenditure and grouped under other current assets, since the economic benefits there from shall flow during the current financial year on divestment.
3. The above results have been reviewed by the Audit Committee on 29th October, 2013 and were taken on record and approved by the Board fo Directors at their meeting held on 30th October, 2013.
4. The Statutory Auditors have conducted limited review of the standalone results of the company for the quarter ended 30th September, 2013 as required by clause 41 of the listing agreement.
5. Figures of the previous period/year have been regrouped/ recast as necessary.
FIXED ASSETS
v
Tangible
Assets
Land
Buildings
Air
Conditioners / Computers / Fridge
Furniture
and Fixtures / Office Equipments
v
Intangible Assets
Computer
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.62.24 |
|
|
1 |
Rs.101.81 |
|
Euro |
1 |
Rs.84.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.