MIRA
INFORM REPORT
|
Report Date : |
07.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
BODAL
CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
Plot
No. 123-124, Phase-I, GIDC, Vatva, Ahmedabad - 382445, |
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Country : |
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|
|
|
Financials (as
on) : |
31.03.2012 |
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|
|
|
Date of
Incorporation : |
24.09.1986 |
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|
|
|
Com. Reg. No.: |
04-009003 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.218.215 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110GJ1986PLC009003 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMB00692G |
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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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|
|
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Line of Business
: |
Manufacturers,
Exporter and Importer of acid, direct and reactive dyestuffs and dye
intermediates for textile leather, plastics and papermaking applications. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 2300000 |
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|
|
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow but correct |
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|
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record.
There appears some loss during the current year recorded by the company. The
external borrowing of the company appears to be huge which may impact the
liquidity position of the company. However, trade relations are reported to be fair. Business is active.
Payments are slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including industrial
deregulation, privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of persistently
high inflation and interest rates and little progress on economic reforms. High
international crude prices have exacerbated the government's fuel subsidy
expenditures contributing to a higher fiscal deficit, and a worsening current
account deficit. Little economic reform took place in 2011 largely due to
corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = BB- |
|
Rating Explanation |
Having moderate risk of default regarding timely servicing of
financial obligation |
|
Date |
May 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
Plot No. 123-124, Phase-I, GIDC, Vatva, Ahmedabad-382445, |
|
Tel. No.: |
91-79-25831684 / 25834223 / 25835437 / 25836051 |
|
Mobile No.: |
91-9925034567 (Mr. Ankit Patel) 91-9925215566 (Mr. Manoj Pandhya) |
|
Fax No.: |
91-79-25835245 / 25836052 |
|
E-Mail : |
secretarial@bodal.com |
|
Website : |
|
|
Area : |
2851 Sq. ft |
|
Location : |
Leased |
|
|
|
|
Factory 2 : |
Plot No. 110, Phase II, GIDC, Vatva, Ahmedabad-382445, |
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|
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Factory 3 : |
Plot No. 2102, Phase III, GIDC, Vatva, Ahmedabad-382445, |
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Factory 4: |
Plot No. 252, 253 and C – 1/254, Phase II, GIDC, Vatva,
Ahmedabad-382445, |
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Factory 5 : |
Plot No. 6002/2B, GIDC, Ankleshwar, Bharuch, |
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Factory 6 : |
Plot No. 606-607, GIDC, Panoli, Near Ankleshwar, District Bharuch, |
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Factory 7 : |
Block No. 804, Village Dudhwada, Taluka Padra, District Vadodara, |
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Factory 8 : |
Block No. 106-108, |
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Branch Office: |
Godown No. 2, P-21, |
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Marketing Office: |
1011-Venus Atlantis, |
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Tel. No.: |
91-79-40503456 |
|
Fax No.: |
91-79-40503457 |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr.
Suresh Jayanti Patel |
|
Designation : |
Director |
|
Address : |
32, Basant Bahar, Bopal Near Sterling Club, Ahmedabad, |
|
Date of Birth/Age : |
15.04.1956 |
|
Date of Appointment : |
31.12.1993 |
|
|
|
|
Name : |
Mr.
Bhavin Suresh Patel |
|
Designation : |
Director |
|
Address : |
32, Basant Bahar, Bopal Near Sterling Club, Ahmedabad, |
|
Date of Birth/Age : |
05.01.1981 |
|
Date of Appointment : |
12.07.2002 |
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|
|
|
Name : |
Mr. Ankit S Patel |
|
Designation : |
Executive Director |
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|
|
|
Name : |
Mr. Ramesh
Prabhodh Patel |
|
Designation : |
Director |
|
Address : |
14, Khushman Society, |
|
Date of Birth/Age : |
23.10.1956 |
|
Date of Appointment : |
31.12.1993 |
|
|
|
|
Name : |
Mr. Surendra N Shah |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Sunil K Mehta |
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Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Bipin R Patel |
|
Designation : |
Independent Director
|
|
|
|
|
Name : |
Mr. Prakash B. Patel |
|
Designation : |
Independent Director
|
KEY EXECUTIVES
|
Name : |
Mr. Ashutosh B. Bhatt |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee |
Mr. Surendra N. Shah Chairman Mr. Bipin R. Patel Member Mr.
Prakash B. Patel Member |
|
|
|
|
Remuneration
Committee |
Mr. Surendra N. Shah Chairman Mr. Bipin R. Patel Member Mr.
Prakash B. Patel Member |
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|
|
|
Shareholder
Grievances Committee |
Mr. Surendra N. Shah Chairman Mr. Bipin R. Patel Member Mr.
Prakash B. Patel Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
65643760 |
60.16 |
|
|
65643760 |
60.16 |
|
|
|
|
|
|
13262306 |
12.16 |
|
|
13262306 |
12.16 |
|
Total shareholding of Promoter and Promoter Group (A) |
78906066 |
72.32 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
24000 |
0.02 |
|
|
11000 |
0.01 |
|
|
4000 |
0.00 |
|
|
6575066 |
6.03 |
|
|
6614066 |
6.06 |
|
|
|
|
|
|
7404312 |
6.79 |
|
|
|
|
|
|
8366904 |
7.67 |
|
|
7110352 |
6.52 |
|
|
705670 |
0.65 |
|
|
67100 |
0.06 |
|
|
122105 |
0.11 |
|
|
516465 |
0.47 |
|
|
23587238 |
21.62 |
|
Total Public shareholding (B) |
30201304 |
27.68 |
|
Total (A)+(B) |
109107370 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
109107370 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers,
Exporter and Importer of acid, direct and reactive dyestuffs and dye
intermediates for textile leather, plastics and papermaking applications. |
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|
Products : |
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit (Figures in MT P.A) |
Installed
Capacity |
|
Dyes and Dyes Intermediates |
MT P.A |
198835 |
|
Product wise
Break Up |
|
|
|
Vinyl Sulphone |
MT P.A |
12800 |
|
Reactive / Direct / Acid Dyes # |
MT P.A |
17000 |
|
Other Chemicals ## |
MT P.A |
8400 |
|
Basic Chemicals# |
MT P.A |
145000 |
|
Other Intermediates |
MT P.A |
15635 |
|
Total |
|
198835 |
# 145000 MT P.A Installed capacity of Basic Chemicals is operative from August 2010
As certified by the management and relied upon by the Auditors being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
Union Bank of India, Industrial Finance Branch, Near Income Tax
Four Road, Ahmedabad-380014, Gujarat, India ·
Standard Chartered Grindlays Bank Limited ·
ICICI Bank ·
Bank of India |
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Facilities : |
(Rs.
In Millions)
|
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|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Mayank
Shah and Associates Chartered
Accountants |
|
Address : |
706,
Mahakant, |
|
|
|
|
Enterprise under significant
influence of key management personnel (Enterprise) : |
Shanti Inorgo Chem (Gujarat) Private Limited Siskaa Chemicals Limited |
|
|
|
|
Fellow Subsidiary
Company : |
Sun Agri Genetics Private Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
|
4000000 |
Preferences Shares |
Rs.10/- each |
Rs.40.000 Millions |
|
|
Total |
|
Rs.340.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
109107370 |
Equity Shares |
Rs.2/- each |
Rs.218.215
Millions |
|
|
|
|
|
Equity shares of Rs. 10 each have been sub-divided into five equity shares of Rs. 2 each pursuant to the resolution passed by the shareholders at the Extra Ordinary Meeting on 28.04.2010.
Out of total shares outstanding 3,38,060 Equity shares had been alloted as fully paid on amalgamation of Milestone Organics Limited with the company as per High Court Order.
The details of
shareholders holding more than 5% shares :
|
Name of Shareholder |
No. of Shares |
% held |
|
Suresh J. Patel |
3,33,45,151 |
30.57 |
|
Bhavin S. Patel |
78,10,050 |
7.16 |
|
Ramesh P. Patel |
66,35,299 |
6.08 |
|
Jayanti D. Patel |
74,72,845 |
6.85 |
The reconciliation of
the number of shares outstanding is set out below :
|
Particulars |
No. of Shares |
|
Equity Shares at the beginning of the year |
99,511,510 |
|
Add : Shares issued on conversion of 1,919,172 share warrants |
9,595,860 |
|
Equity Shares at the end of the year |
109,107,370 |
The Company has only one class of equity shares having a par
value of Rs. 2/- per share. Each shareholder is eligible for one vote per
share. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the company, after distribution of all
preferential amounts, in proportion of their shareholding.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
218.215 |
199.023 |
199.023 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
375.687 |
481.046 |
375.931 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Money received against share warrants |
0.000 |
106.313 |
0.000 |
|
|
6] Deferred Grant |
2.765 |
3.293 |
3.821 |
|
|
NETWORTH |
596.667 |
789.675 |
578.775 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2938.605 |
2390.399 |
2514.172 |
|
|
2] Unsecured Loans |
57.674 |
184.831 |
124.721 |
|
|
TOTAL BORROWING |
2996.279 |
2575.230 |
2638.893 |
|
|
DEFERRED TAX LIABILITIES |
85.839 |
189.276 |
112.632 |
|
|
|
|
|
|
|
|
TOTAL |
3678.785 |
3554.181 |
3330.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2765.237 |
2712.885 |
1866.152 |
|
|
Capital work-in-progress |
13.395 |
5.947 |
476.528 |
|
|
|
|
|
|
|
|
INVESTMENT |
19.075 |
23.993 |
6.835 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Other Non-current assets |
73.291 |
72.314 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
765.509
|
893.047 |
526.716
|
|
|
Sundry Debtors |
1522.489
|
1246.161 |
1038.186
|
|
|
Cash & Bank Balances |
45.933
|
47.765 |
44.940
|
|
|
Other Current Assets |
1.039
|
1.281 |
0.000
|
|
|
Loans & Advances |
487.239
|
448.844 |
504.529
|
|
Total
Current Assets |
2822.209
|
2637.098 |
2114.371 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1184.005
|
1110.524 |
966.763
|
|
|
Other Current Liabilities |
821.377
|
695.502 |
86.048
|
|
|
Provisions |
9.040
|
92.030 |
83.129
|
|
Total
Current Liabilities |
2014.422
|
1898.056 |
1135.940 |
|
|
Net Current Assets |
807.787
|
739.042 |
978.431
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
2.354 |
|
|
|
|
|
|
|
|
TOTAL |
3678.785 |
3554.181 |
3330.300 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6033.462 |
5713.210 |
4675.450 |
|
|
|
Goods Burnt Due to Fire |
0.000 |
0.000 |
7.945 |
|
|
|
Other Income |
14.814 |
10.953 |
182.615 |
|
|
|
TOTAL (A) |
6048.276 |
5724.163 |
4866.010 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4009.748 |
3824.238 |
|
|
|
|
Purchases of Stock-in Trade |
461.906 |
190.159 |
|
|
|
|
Changes in Inventories of Finished Goods, Stock in Process and stock in Trade |
12.509 |
(243.950) |
4338.767 |
|
|
|
Employee Benefits Expenses |
330.068 |
298.993 |
|
|
|
|
Other Expenses |
1173.028 |
1038.985 |
|
|
|
|
Exceptional Items |
(50.500) |
0.000 |
|
|
|
|
TOTAL (B) |
5936.759 |
5108.425 |
4338.767 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
111.517 |
615.738 |
527.243 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
338.077 |
226.302 |
201.888 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(226.560) |
389.436 |
325.355 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
160.038 |
137.990 |
121.253 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(386.598) |
251.446 |
204.102 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(103.437) |
83.876 |
69.465 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(283.161) |
167.570 |
134.637 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
30.834 |
|
|
|
|
|
|
|
|
|
|
PRIOR PERIOD ITEMS |
NA |
NA |
5.778 |
|
|
|
EXCESS TAX PROVISION FOR EARLIER YEARS |
NA |
NA |
(0.043) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend On Equity Shares |
NA |
NA |
35.824 |
|
|
|
Proposed Final Dividend On Equity Shares |
NA |
NA |
17.912 |
|
|
|
Provision For Dividend Tax |
NA |
NA |
8.925 |
|
|
|
Transfer To Capital Redemption Reserve |
NA |
NA |
0.000 |
|
|
|
Transfer To General Reserves |
NA |
NA |
14.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
94.545 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
2247.104 |
2339.081 |
2273.797 |
|
|
TOTAL EARNINGS |
2247.104 |
2339.081 |
2273.797 |
|
|
|
|
|
|
|
|
|
|
VALUE OF IMPORTS |
387.838 |
445.639 |
389.022 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
Basic |
(2.74) |
1.68 |
6.76 |
|
|
|
Diluted |
(2.74) |
1.42 |
7.05 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st Quarter |
2nd Quarter |
|
Net Sales |
|
136.170 |
122.480 |
|
Total Expenditure |
|
146.440 |
109.890 |
|
PBIDT (Excl OI) |
|
(10.270) |
12.590 |
|
Other Income |
|
0.910 |
0.510 |
|
Operating Profit |
|
(9.360) |
13.100 |
|
Interest |
|
8.440 |
9.340 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(17.800) |
3.760 |
|
Depreciation |
|
4.120 |
4.140 |
|
Profit Before Tax |
|
(21.910) |
(0.380) |
|
Tax |
|
(7.020) |
(0.690) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(14.900) |
0.310 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(14.900) |
0.310 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(4.68)
|
2.93 |
2.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(6.41)
|
4.40 |
4.37 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.92)
|
4.70 |
5.13
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.65)
|
0.32 |
0.35
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
5.02
|
3.26 |
4.56
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.40
|
1.39 |
1.86
|
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 |
---------------------- |
|
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 |
BODAL’S BUSINESS
The company has created Bodal group, engaged in manufacturing of chemicals, Agriculture and its technologies related business from single business entity. Bodal group includes subject and its subsidiaries. Bodal’s core business is manufacturing of Dyestuffs, Dyes Intermediates and other Chemicals falling under the broad category of Chemicals and new business is Agriculture and its related technologies. The said business carried out by the following companies:
Subject - one of the leading Manufacturer of Dyes, Dyes Intermediates and other chemicals in India.
Subject - engaged in Agricultural related business. BAL is wholly owned subsidiary company of BCL.
Sun Agrigenetics Private Limited (SAPL)- engaged in production of tissue culture plants, Microbial bio-fertilizers, Genetic Improvement of crops, contract research etc. SAPL is subsidiary company of BAL.
The broader area of operation of BCL, BAL and SAPL are as follows :
Bodal Chem (BCL)
Subject is well-known in the field of manufacturing Dyestuffs, Dyes Intermediates and other Chemicals falling under the broad category of Chemicals. Dyestuff is further used in Textile, Leather and Paper Industry. The Company has total 8 separate units having manufacturing facilities located in Gujarat. Due to Forward and Backward – both Integration from dye Intermediates division, they use about 60 % of their own raw materials when they produce intermediates and they use about 80% of their own raw materials when they produce dyestuffs. This is their Strength. Out of the total sales about 42% is export and balance is domestic. The company is listed on Bombay Stock Exchange Limited. (BSE) and National Stock Exchange of India Limited. (NSE).
The broader area of operation of the company is as under:
Dyes
The Company is a leading manufacturer of Reactive, Acid and Direct Dyes. Bodal has more than 150 different products of Dyes to cater to Textile, Leather and Paper Industry.
Dye Intermediates
Subject is amongst the leading manufacturers of Dye Intermediates globally. The Company manufactures more than 25 Dyes Intermediates. These Dye Intermediates are directly sold as well as consumed captively for manufacturing different kinds of Dyes.
Other/Basic Chemicals
Subject is also a manufacturer of Other Chemicals like Sulphuric Acid, CSA, Oleums, Beta Napthol, Acetanilide, Para Nitro Aniline etc. These Chemicals are used as key raw materials for production of Dye Intermediates, which is highly beneficial in terms of improving profitability of the company.
Bodal Agro (BAL)
The company had forayed into Agriculture and its technologies business through BAL. BAL had been incorporated as wholly owned subsidiary company of BCL in the year 2010. This is new business line for the company. However, the Directors expects that BAL will contribute significantly in Bodal group’s bottom line in coming years and create values for their stakeholders.
There are ample opportunities in Agriculture business and its related technologies business. BAL is exploring various business opportunities from Farm to direct customers. This line of business gives tremendous scope for business starting from farming/ contract farming, seeds and plants, cold storage, food and beverage business etc.
BAL has vision to become a leading player in the field of Agriculture business by way of complete chain from farm to customer.
BAL is currently engaged in the business of retail and wholesale trading of foodgrains, pulses, vegetable and fruits. It has already opened retail stores for vegetables, fruits, food grains, pulses etc. under the company’s brand name in the different areas in Ahmedabad initially. BAL plans to open more stores in coming months in Ahmedabad city and latter on in Gujarat. BAL has received very good response from the market for retail stores of the company.
BAL plans to manufacture Single Super Phosphate (SSP)-Fertilizer with 3.5 lacs MTPA capacity near by their existing manufacturing facility of Sulphuric Acid, Dye Intermediates and Dyes, located at their Padra unit, Vadodara. During the year, BAL had applied to government authorities/agencies for licenses/approvals of SSP project. The company has already received some licenses/approvals for said project and remaining licenses/approvals are being pending at various levels.
SSP plant will use Sulphuric Acid and Spent Sulphuric Acid (Concentrate 25 to 30%) as key raw materials for producing SSP. The company has its own 500TPD Sulphuric Acid plant, which is running successfully and Spent Sulphuric Acid (Concentrate 25 to 30%) , which available from production of Dye Intermediates like Vinyl Sulphone Esater, DASA, F C Acid. It is available at free of cost and there is also saving in purification cost.
The construction work of SSP plant will start after all necessary licenses/approvals and financial closure of said plant.
Sun Agrigenetics
(SAPL)
SAPL is fellow subsidiary of BCL. SAPL is in business of production of tissue culture plants, Microbial bio-fertilizers, Genetic Improvement of crops, contract research etc. SAPL has tissue culture laboratory with production capacity of 2 million plants p.a. Green House and Nursery complex spread over an area of 70,000 sq.ft. R and D centre recognized by Department of Science and Industrial Research (DSIR), Gov. of India, New Delhi. SAPL plans to expand its capacities and also launch new products through R and D.
PERFORMANCE OF THE
COMPANY
The Year - 2011-12
The company’s performance has adversely impacted due to external headwinds like uncertainty in global market, higher inflation, volatility in crude prices, fluctuation in currency and high interest rate and many more. In spite of this, the company has achieved highest ever Turnover during the year. This indicate itself that the company’s management has proved its ability to retain business, in fact added new customers, in tough times.
The company has achieved highest ever Total Income from Operation of Rs. 60335.000 Millions in the financial year 2011-12. However, this milestone did not reflect in bottom line for the financial year 2011-12 and the company has incurred net loss of Rs. 283.200 Millions for the financial year 2011-12.
Current Year-2012-13
The company is making all efforts to cope up with the challenges through continuous cost reduction, process improvements, imparting training to the workforce on the continued basis, developing and launching new products and improved customer services to mitigate the growing cost pressure.
The Company is continuously spreading its wings for further growth every year by entering into new geographies, adding its customer base and expanding its businesses.
The Company has performed during the first quarter i.e. April-June, of the current financial year as per the following details.
· Total Income from operation at Rs. 1361.700 Millions
· EBIDTA at Rs. 35.900 Millions (excluding Rs. 129.500 Millions Foreign Exchange Fluctuation Loss)
· Finance cost (Interest and Bank Charges ) at Rs. 84.400 Millions
· Net Loss at Rs. 149.000 Millions
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY
OVERVIEW-DYES AND DYE INTERMEDIATES
The Indian Dyestuff industry is today self-sufficient with a majority of its inputs manufactured locally. Dyestuff industry comprises of 3 key constituents, namely, dyestuffs, pigments and intermediates. The value chain has intermediates as downstream products manufactured from petrochemicals; intermediates are further processed to obtain dyestuff and pigments. Both dyestuffs and pigments are critical inputs to several industries such as Textile, Paper and Packaging, Leather, Food, Polymer, Coating, printing ink etc.
The Indian dye and dye intermediates market is expected to grow around 7% CAGR for next three years on account of strong growth in the end-use segments. The main end use segments for these products are textiles, paper and leather industries which together account for – 88% of the total demand.
The dyes and dye intermediates market is fragmented with around 950 manufacturers. A high degree of consolidation is expected in this segment. The main drivers for consolidation are the stringent environmental norms and awareness among customers increasing the cost of operations for small-scale players. This industry is located mainly in Gujarat and Maharashtra.
The important Dyes are basic dyes, azo acid and direct dyes; disperse dyes, reactive dyes, sulphur dyes, vat dyes, organic pigments, naphthols and optical brighteners.
The main drivers for Dyes are Reactive Blacks, Acid Blacks, Reactive Blues, Reactive yellows and Reactive reds. The main drivers for Dye Intermediates are Xylidine, Vinyl Sulphone, Para Dichlorobenzene, Dichloroaniline and H-Acid.
Indian dyestuff industry has a competitive edge. There is huge potential of domestic demand due to low consumption of dyestuff, which leads to strong potential for Indian Dyestuff industry. The Indian Dyestuff industry is a potential powerhouse benefiting from comparative low labour cost, talented technical manpower, capabilities for research and development etc. However, Safety, Health and Environment protection issues have become the major issues for Indian Dyestuff Industry.
BODAL CHEMICAL’S
POSITION IN DYES AND DYE INTERMEDIATES INDUSTRY
· Subject is the only company in India having in-house manufacturing facility starting from Basic Chemicals to Wide range of Dye Intermediates to Dyestuffs.
· Fastest Growing Company in the Dyes and Dye Intermediates Industry.
· Subject is one of the leading producers of Dye intermediates and Dyestuff in the world.
· Export to more than 35 Countries.
· Well reputed for Consistency, Reliability, Quality and Timely Delivery among Global Dyestuffs Market.
· Subject has total 8 manufacturing Units at different locations in Gujarat, India
· Subject has identified three Strategic Business Units
o Dyes (more than 150 products)
o Dye Intermediates (more than 25 products)
o Basic and Other Chemicals (more than 10 products)
· Subject produces more than 150 dyes suitable for Textile, Leather and Paper industries.
· Subject also produces Basic chemicals like Beta Napthol, Sulphuric Acid, Para Nitro Aniline and Acetanilide etc. for captive consumption as well as direct sale.
Subject enjoy an abundant supply of basic/other chemicals for production of Dye Intermediates and Dye Intermediates for Dyes. Subject has build up on technical services, marketing capabilities and production in bulk quantities to face competition from domestic as well as global. In this way, Subject enjoy a position of one of the leader in Dyes and Dye Intermediates Industry.
FINANCIAL PERFORMANCE
AND OUTLOOK
This is one of the toughest years in the history of Dyes and Dye Intermediates industry, where demand was sluggish and uncertainty prevailing in the international market. In spite of this, the company has achieved highest ever Total Income from operation of Rs.6033.500 Millions for the financial year 2011-12 compared to Rs. 5713.200 Millions for the financial year 2010-11, increase of 5.61%. EBIDTA of Rs. 61.000 Millions for the year 2011-12 compared to Rs. 615.700 Millions in 2010-11. Financial charges (Interest) of Rs.338.100 Millions for the year 2011-12 compared to Rs. 226.300 Millions for the previous year. Depreciation and Amortization Rs.160.000 Millions for the 2011-12 compared to Rs. 138.000 Millions for the previous year. Net Loss of Rs. 283.200 Millions for the year 2011-12 compared to Net Profit of Rs. 167.600 Millions in 2010-11.
The business environment has been considerably stabilizing after the sudden impact in the financial year 2011-12. It is expected that margins will also slowly improve in coming years. The company has been taking several measures to improve margin and to get maximum productivity. The company will set several benchmarks on various parameters for Dyes and Dye Intermediates Industry.
The financial performance of the company will be improved in the second half of the year 2012-13 compared to corresponding period for the previous year 2011-12. The management expects that the company will back in black by posting profit in the second half of the year 2012-13.
ENVIRONMENT
The Chemical Industry is subject to various stringent regulatory requirements of environment and Pollution Control regulations being legislated by the Government from time to time, including safety and emission norms. The Company addresses these issues through advance planning and allocation of sufficient physical and human resources, effluent treatment facilities and process controls
CONTINGENT
LIABILITIES NOT PROVIDED IN RESPECT OF:
Rs. In Millions
|
Nature of
Liabilities |
31.03.2012 |
31.03.2011 |
|
a. Disputed matters in appeals/contested in respect of: |
|
|
|
I) Income Tax |
24.805 |
9.284 |
|
II) Excise |
2.021 |
0.118 |
|
III) Service Tax |
9.667 |
9.608 |
|
IV) Customs Department |
1.011 |
1.011 |
|
b. Letter of credit |
26.415 |
69.085 |
|
Estimated amount of Contracts, remaining to be executed on capital account (net of advances) |
0.354 |
4.289 |
|
d. Bank Guarantee |
42.363 |
26.074 |
UNSECURED LOAN
Rs. In Millions
|
Particular |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
LONG TERM
BORROWINGS |
|
|
|
Public Deposits |
23.942 |
19.689 |
|
Trade Deposits |
4.046 |
10.078 |
|
Loan From Members |
3.772 |
55.500 |
|
Loans From Corporates |
0.000 |
32.064 |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans From Corporates |
25.000 |
67.500 |
|
Trade Deposits |
0.914 |
0.000 |
|
Total |
57.674 |
184.831 |
STATEMENT OF UN-AUDITED FINANCIAL RESULT (PROVISIONAL) FOR THE QUARTER
ENDED ON 30.09.2012.
Rs. In Millions
|
Sr. No. |
PARTICULARS |
3 months ended on 30.09.2012 |
Preceding 3 months ended on 30.06.2012 |
Half Year ended on 30.09.2012 |
|
|
|
Un-audited |
Un-audited |
Un-audited |
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net Sales/Income From Operations(Net of excise duty) |
1207.849 |
1336.993 |
2544.842 |
|
|
(b) Other Operating Income |
16.944 |
25.260 |
42.204 |
|
|
Total income from
operations (net) |
1224.793 |
1362.253 |
2587.046 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
745.270 |
854.034 |
1599.304 |
|
|
(b) Purchase of stock-in-trade |
75.800 |
61.494 |
137.294 |
|
|
(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(0.965) |
101.539 |
100.574 |
|
|
(d) Manufacturing Expenditure |
167.370 |
155.822 |
323.192 |
|
|
(e) Employees benefits expense |
78.965 |
76.633 |
155.598 |
|
|
(f) Depreciation and amortisation expense |
41.371 |
41.173 |
82.544 |
|
|
(g) Other expenses |
32.439 |
214.826 |
247.265 |
|
|
Total expenses |
1140.250 |
1505.521 |
2645.771 |
|
3 |
Profit/(Loss) from Operations
before other income, finance costs and exceptional items (1-2) |
84.543 |
(143.268) |
(58.725) |
|
4 |
Other Income |
5.058 |
8.514 |
13.572 |
|
5 |
Profit/(Loss) from
ordinary activities before finance costs and exceptional items (3±4) |
89.601 |
(134.754) |
(45.153) |
|
6 |
Finance costs |
93.396 |
84.386 |
177.782 |
|
7 |
Profit/(Loss) from
ordinary activities after finance costs but before exceptional items (5±6) |
(3.795) |
(219.140) |
(222.935) |
|
8 |
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
9 |
Profit/(Loss) from
ordinary activities before tax (7±8) |
(3.795) |
(219.140) |
(222.935) |
|
10 |
Tax expense |
|
|
|
|
|
-Deferred Tax-Liability/(Assets) |
(6.916) |
(70.165) |
(77.081) |
|
|
-Income Tax |
0.000 |
0.000 |
0.000 |
|
|
-MAT Credit |
0.000 |
0.000 |
0.000 |
|
11 |
Net Profit/(Loss)
from ordinary activities after Tax (9±10) |
3.121 |
(148.975) |
(145.854) |
|
12 |
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
13 |
Net Profit(Loss)
for the period (11+12) |
3.121 |
(148.975) |
(145.854) |
|
14 |
Paid-up equity share capital (Face Value Rs.2/- each share) |
218.215 |
218.215 |
218.215 |
|
15 |
Reserve excluding Revaluation Reserves |
|
|
|
|
16.i |
Earnings per share
(before extraordinary items)(of Rs.2/-each) |
|
|
|
|
|
(a) Basic |
0.03 |
(1.37) |
(1.34) |
|
|
(b) Diluted |
0.03 |
(1.37) |
(1.34) |
|
16.ii |
Earnings per share
(after extraordinary items)(of Rs.2/-each): |
|
|
|
|
|
(a) Basic |
0.03 |
(1.37) |
(1.34) |
|
|
(b) Diluted |
0.03 |
(1.37) |
(1.34) |
|
|
|
|
|
|
|
1 |
Public Share
Holding |
|
|
|
|
|
- Number of Equity Shares |
30201304 |
30201304 |
30201304 |
|
|
- Percentage of shareholding |
27.68 |
27.68 |
27.68 |
|
2 |
Promoters &
Promoters group shareholding a) Pledged/Encumbered |
|
|
|
|
|
-Number of Shares |
63066910 |
63066910 |
63066910 |
|
|
-Percentage of shares (as a % of the total shareholding of Promoter & Promoter group) |
79.93 |
79.93 |
79.93 |
|
|
-Percentage of shares (as a % of the total share capital of the company) |
57.80 |
57.80 |
57.80 |
|
|
b) Non-encumbered |
|
|
|
|
|
-Number of Shares |
15839156 |
15839156 |
15839156 |
|
|
-Percentage of shares (as a % of the total shareholding of Promoter & Promoter group) |
20.07 |
20.07 |
20.07 |
|
|
-Percentage of shares (as a % of the total share capital of the company) |
14.52 |
14.52 |
14.52 |
|
|
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
|
|
Pending at the beginning of the Quarter |
Nil |
|
|
|
|
Received during the Quarter |
Nil |
|
|
|
|
Disposed of during the Quarter |
Nil |
|
|
|
|
Remaining unresolved at the end of the Quarter |
Nil |
|
|
STATEMENT OF ASSETS
AND LIABILITIES
Rs. In Millions
|
Sr. No. |
PARTICULARS |
As at 30.09.2012 (Un-audited) |
|
A |
EQUITY AND
LIABILITIES |
|
|
1 |
Shareholders funds |
|
|
|
(a) Share capital |
218.215 |
|
|
(b) Money received against share warrants |
0.000 |
|
|
(c) Reserves and surplus |
229.833 |
|
|
Sub-total-Shareholders'
funds |
448.048 |
|
2 |
Deferred Grant |
2.501 |
|
3 |
Non-current
liabilities |
|
|
|
(a) Long-term borrowings |
1088.760 |
|
|
(b) Deferred tax liabilities (net) |
8.758 |
|
|
Sub-total-Non-current
liabilities |
1100.019 |
|
4 |
Current liabilities |
|
|
|
(a) Short-term borrowings |
1702.120 |
|
|
(b) Trade payables |
1088.905 |
|
|
(c) Other current liabilities |
709.745 |
|
|
(d) Short-term provisions |
9.185 |
|
|
Sub-total-Current liabilities |
3509.955 |
|
|
TOTAL-EQUITY AND
LIABILITIES |
5058.022 |
|
|
|
|
|
B |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed assets |
2714.430 |
|
|
(b) Non-current investments |
19.095 |
|
|
(c) Long-term loans and advances |
67.916 |
|
|
(d) Other non-current assets |
73.291 |
|
|
Sub-total-Non-current
assets |
2874.732 |
|
2 |
Current assets |
|
|
|
(a) Inventories |
609.808 |
|
|
(b) Trade receivables |
1151.800 |
|
|
(c) Cash and cash equivalents |
40.660 |
|
|
(d) Short-term loans and advances |
380.702 |
|
|
(e) Other current assets |
0.320 |
|
|
Sub-total-Current
assets |
2183.290 |
|
|
TOTAL-ASSETS |
5058.022 |
Notes:
(1) The above result has been considered and approved by Audit Committee and subsequently by the Board of Directors at the meeting held on 9th November, 2012. Limited Review has been carried out by the statutory auditor of the company as per clause 41 of the listing agreement.
(2) Subject has only one segment of activity named 'Chemicals' I.e. Dyes, Dye Intermediates and Basic Chemicals.
(3) To facilitate comparison, re-grouping has been made, wherever necessary.
FIXED ASSETS:
- Land
- Plant and
Machinery
- Furniture and
Fixtures
- Office
Equipment
- Vehicles
AS PER WEBSITE
PRESS RELEASE
BODAL CHEMICALS
DENIES SALE OF SSP PLANT, BONUS ISSUE
India Infoline News Service/ 16:17, Aug 29, 2011
There are no developments in the Company for divestment of SSP Plant,
issue of Bonus shares etc, Bodal Chemicals said.
Bodal Chemicals Limited on Monday clarified that it has not issued any
Press Release on August 27, for the divestment of SSP Plant and issue of Bonus
shares. Further, the Company has not send any Fax on August 27.
There are no developments in the Company for divestment of SSP Plant,
issue of Bonus shares etc, Bodal Chemicals said. The developments like
divestment of SSP Plant, issue of bonus shares, Crisil Rating etc., are not
consented by the Company, un-authenticated and without any existence, it added.
There was no Board Meeting on August 27, and there is no Board Meeting
on August 29, Bodal Chemicals said.
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.53.09 |
|
|
1 |
Rs.83.12 |
|
Euro |
1 |
Rs.72.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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.