MIRA
INFORM REPORT
|
Report Date : |
21.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
3M INDIA LIMITED |
|
|
|
|
Registered
Office : |
Plot No.48-51, Electronic |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
04.07.1987 |
|
|
|
|
Com. Reg. No.: |
08-13543 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 112.651 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300KA1987PLC013543 |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stok Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Adhesives Tapes (Milling, Compounding), Coating,
Screen Printing, Solvent Extraction, Telecom Connectors, Injection Moulding,
Electro Mechanical Assembly and Fiber Optic Assembly. |
|
|
|
|
No. of Employees
: |
1662 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 20000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having a good track record.
There appears slight dip in profitability during the current year. However, general financial position of the company is strong.
Performance capability appears to be high. Liquidity position of the company
is good. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered for normal 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 – 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 |
CRISIL |
|
Rating |
NON – CONVERTIBLE DEBENTURE : CRISIL AAA |
|
Rating Explanation |
Having the high degree of safety regarding timely servicing of financial obligation it carry Lowest credit risk. |
|
Date |
December 28, 2011 |
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/ Innovation Centre: |
No. 48-51, Electronic City Hosur Road, Bangalore – 560100, Karnataka,
India |
|
Tel. No.: |
91-80-28520203/ 28520142/ 22231414/ 66595999 |
|
Fax No.: |
91-80-28520576/ 22231450/ 28520157 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Concorde Block, UB City, 24, Vittal |
|
Tel No.: |
91-80-22231414/ 66595759 |
|
Fax No.: |
91-80-22231450 |
|
|
|
|
Factory 2: |
Plot No. 8, Moraiya Industrial Area, Off Sarkhej Bawla Highway, Moraiya, Taluka Sanand, Ahmedabad- 382213,Gujarat, India |
|
Tel. No.: |
91-2717-250782/3 |
|
Fax No.: |
91-2717-250781 |
|
|
|
|
Factory 3: |
B- 20, MIDC- Ranjangaon, Taluka Shirur, Pune- 412201, Maharashtra, India. |
|
Tel. No.: |
91-21-38663726 |
|
|
|
|
Factory 4: |
No. 145, |
|
Tel. No.: |
91-20-27301100/ 27301164 |
|
Fax No.: |
91-20-27426380/ 27426385 |
|
|
|
|
Factory 5: |
PIPDIC Industrial Estate, Unit 2, Plot No. A 63 and 64, Metupalayam, Pondichery- 605009 |
|
Tel. No.: |
91-413-2278617 |
|
Fax No.: |
91-413-2279403 |
|
|
|
|
Branch Offices: |
Located at • Mumbai • Delhi |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. D. J. Balaji Rao |
|
Designation : |
Chairman, Non Executive and Independent Director |
|
Qualification : |
B. E in Mechanical Engineering |
|
DIN No.: |
00025254 |
|
|
|
|
Name : |
Mr. Ajay Nanavati |
|
Designation : |
Managing Director |
|
Qualification : |
Bachelor Degree in Chemical Engineering |
|
DIN No.: |
02370729 |
|
|
|
|
Name : |
Mr. B V
Shankaranarayana Rao |
|
Designation : |
Whole Time
Director |
|
DIN No.: |
00044840 |
|
|
|
|
Name : |
Mrs. Sadhana Kaul |
|
Designation : |
Whole Time
Director |
|
DIN No.: |
02589934 |
|
|
|
|
Name : |
Mr. B. S. Lyer |
|
Designation : |
Non- Executive and Independent Director |
|
Qualification : |
Graduate |
|
DIN No.: |
00138425 |
|
|
|
|
Name : |
Mr. B. C. Prabhakar |
|
Designation : |
Non- Executive and Independent Director |
|
DIN No.: |
00040052 |
|
|
|
|
Name : |
Mr. Jose R. Verala (up to October 31, 2011) |
|
Designation : |
Non- Executive Director |
|
|
|
|
Name : |
Mr. Albert C. Wang (from March 12, 2012) |
|
Designation : |
Non- Executive Director |
|
DIN No.: |
05234667 |
|
|
|
|
Name : |
Mr. R. Vijay Kumar (from October 31, 2011) |
|
Designation : |
Whole time Director |
|
Din No.: |
05108452 |
KEY EXECUTIVES
|
Name : |
Mr. V. Srinivasan |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee : |
Mr. B. S. Lyer – Chairman Mr. D. J. Balaji Rao – Member Mr. B C Prabhakar – Member Mr. Jose R. Varela (up to October 31, 2011) – Member |
|
|
|
|
Shareholders/ Investors Grievance committee: |
Mr. D. J. Balaji Rao – Chairman Mr. B. S. Lyer – Member Mr. B C Prabhakar – Member Mr. Ajay Nanavati – Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
8562000 |
76.00 |
|
|
8562000 |
76.00 |
|
Total shareholding of
Promoter and Promoter Group (A) |
8562000 |
76.00 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
156518 |
1.39 |
|
|
8705 |
0.08 |
|
|
60 |
0.00 |
|
|
1099650 |
9.76 |
|
|
1264933 |
11.23 |
|
|
|
|
|
|
350398 |
3.11 |
|
|
|
|
|
|
938334 |
8.33 |
|
|
123821 |
1.10 |
|
|
25584 |
0.23 |
|
|
511 |
0.00 |
|
|
23275 |
0.21 |
|
|
1798 |
0.02 |
|
|
1438137 |
12.77 |
|
Total Public
shareholding (B) |
2703070 |
24.00 |
|
Total (A)+(B) |
11265070 |
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) |
11265070 |
0.00 |
(1)
Indian
Bodies
Corporate
Individual
shareholders holding nominal share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Adhesives Tapes (Milling, Compounding), Coating,
Screen Printing, Solvent Extraction, Telecom Connectors, Injection Moulding,
Electro Mechanical Assembly and Fiber Optic Assembly. |
||||||||
|
|
|
||||||||
|
Products : |
·
Injection Moulding
Tape ·
Adhesives (milling,
Compounding) ·
Coating ·
Screen Printing ·
Solvent Extraction ·
Telecom Connectors ·
Injection Moulding ·
Electro Mechanical
Assembly ·
Fiber Optic Assembly
Injection Moulding |
PRODUCTION STATUS As on 31.03.2011
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
|
Self Adhesive Labels |
Nos. |
NA |
187500000 |
92203692 |
|
Fusion bonded epoxy coating |
Kgs. |
NA |
18000000 |
3872212 |
|
Paper and Paper Tapes |
Nos. |
NA |
NA |
31036291 |
|
Paint Polishes |
Nos. |
NA |
NA |
6482550 |
|
Abrasives |
Nos. |
NA |
NA |
125458278 |
Notes:
i) Installed capacity is as certified by the Management and relied upon by the auditors without verification as this is a technical matter.
ii) Represents installed capacities on three shifts basis.
iii) Includes products which are non standard having various sizes and measurement.
iv)The installed capacity represents annual capacity based on the maximum utilisation of Plant and Machinery.
v) Installed capacity includes capacity at third party processing/contract manufacturing locations.
vi) Figures in brackets relate to the previous period.
GENERAL INFORMATION
|
No. of Employees : |
1662 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
· BNP Paribas · Canara Bank · Citibank N.A. · Deutsche Bank · HDFC Bank Limited · ICICI Bank Limited · State Bank of India ·
Hong Kong and Shanghai Banking Corporation
Limited |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||||||||
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lovelock and Lewes Chartered Accountant |
|
Address : |
5th Floor, Tower D’, The Millenia, 1 and |
|
|
|
|
Fellow Subsidiary : |
•
3M Gulf Limited •
3M Electro and Communication India Private
Limited •
3M Indonesia Limited •
3M China Limited •
3M Canada Company •
3M Asia Pacific Pte Limited •
Sumitomo 3M Limited |
|
|
|
|
Holding Company : |
3M Company, St. Paul, USA |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11265070 |
Equity Shares |
Rs.10/- each |
Rs. 112.651 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11265070 |
Equity Shares |
Rs.10/- each |
Rs. 112.651
Millions |
|
|
|
|
|
Notes:
a) Reconciliation of
the number of shares outstanding:
|
Particulars |
As at 31.03.2012 |
|
|
No. of Shares |
Rs. In Millions |
|
|
Equity Shares |
|
|
|
Shares outstanding at the beginning of the year |
11,265,070 |
112.651 |
|
Shares issued during the year |
-- |
-- |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
11,265,070 |
112.651 |
b) Rights,
preferences and restrictions attached to shares
The Company has only one class of shares referred to as equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote 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, in proportion to their shareholding.
c) Shares held by
Holding Company
|
Particulars |
As at 31.03.2012 |
|
|
No. of Shares |
Rs. In Millions |
|
|
|
|
|
|
3M Company, USA |
8,562,000 |
85.620 |
d) Shares held by
each shareholder holding more than 5 per cent shares
|
Particulars |
As at 31.03.2012 |
|
|
No. of Shares held |
% of Holding |
|
|
|
|
|
|
3M Company, USA |
8,562,000 |
85.620 |
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 |
112.651 |
112.651 |
112.651 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5929.060 |
5281.343 |
4293.271 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6041.711 |
5393.994 |
4405.922 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
91.983 |
99.551 |
0.000 |
|
|
2] Unsecured Loans |
611.896 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
703.879 |
99.551 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6745.590 |
5493.545 |
4405.922 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2898.735 |
1653.204 |
1412.966 |
|
|
Capital work-in-progress |
208.014 |
942.020 |
397.233 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
44.048 |
63.993 |
82.651 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2137.166
|
1589.261
|
1231.052 |
|
|
Sundry Debtors |
2339.018
|
1967.463
|
1445.470 |
|
|
Cash & Bank Balances |
538.898
|
506.835
|
1055.768 |
|
|
Other Current Assets |
0.000
|
0.000
|
3.737 |
|
|
Loans & Advances |
1047.648
|
787.698
|
471.320 |
|
Total
Current Assets |
6062.730
|
4851.257
|
4207.347 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1464.762
|
1209.325
|
1339.667 |
|
|
Other Current Liabilities |
888.686
|
699.655
|
221.700 |
|
|
Provisions |
114.489
|
107.949
|
132.908 |
|
Total
Current Liabilities |
2467.937
|
2016.929
|
1694.275 |
|
|
Net Current Assets |
3594.793
|
2834.328
|
2513.072 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6745.590 |
5493.545 |
4405.922 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14051.007 |
11914.093 |
10868.591 |
|
|
|
Other Income |
52.674 |
109.996 |
199.294 |
|
|
|
TOTAL (A) |
14103.681 |
12024.089 |
11067.885 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
5135.592 |
4108.488 |
|
|
|
|
Purchases of stock-in-trade |
4138.905 |
3110.199 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(597.497) |
(274.355) |
|
|
|
|
Employee Benefits Expense |
1856.627 |
1490.718 |
|
|
|
|
Other Expenses |
2306.830 |
1926.733 |
|
|
|
|
TOTAL (B) |
12840.457 |
10361.783 |
9489.722 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1263.224 |
1662.306 |
1578.163 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
31.805 |
8.002 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1231.419 |
1654.304 |
1578.163 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
270.313 |
173.657 |
169.461 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
961.106 |
1480.647 |
1408.702 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
313.389 |
492.575 |
480.334 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
647.717 |
988.072 |
928.368 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5183.128 |
4195.056 |
3266.688 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
5830.845 |
5183.128 |
4195.056 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods |
221.046 |
282.194 |
145.743 |
|
|
|
Freight and insurance on exports |
4.701 |
8.686 |
5.241 |
|
|
|
Contract Research |
141.092 |
73.886 |
123.234 |
|
|
|
Re-charge of Other Services |
104.335 |
63.648 |
0.000 |
|
|
TOTAL EARNINGS |
471.174 |
428.414 |
274.218 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2480.267 |
1804.382 |
1637.753 |
|
|
|
Stores & Spares |
6.898 |
5.270 |
7.336 |
|
|
|
Capital Goods |
6.948 |
244.623 |
157.369 |
|
|
|
Traded Goods |
3707.305 |
2667.911 |
2525.344 |
|
|
TOTAL IMPORTS |
6201.418 |
4722.186 |
4327.802 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
57.50 |
87.71 |
82.41 |
|
QUARTERLY /
SUMMARISED RESULTS
|
Particulars (Rs in Millions) |
|
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Audited / UnAudited |
|
UnAudited |
UnAudited |
UnAudited |
|
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
|
4078.790 |
3830.980 |
3740.800 |
|
Total Expenditure |
|
3756.920 |
3575.930 |
3567.600 |
|
PBIDT (Excl OI) |
|
321.870 |
255.050 |
173.200 |
|
Other Income |
|
24.230 |
18.400 |
3.400 |
|
Operating Profit |
|
346.100 |
273.450 |
146.600 |
|
Interest |
|
13.960 |
18.200 |
27.400 |
|
Exceptional Items |
|
000 |
000 |
0.000 |
|
PBDT |
|
332.140 |
255.250 |
149.200 |
|
Depreciation |
|
84.810 |
88.050 |
93.500 |
|
Profit Before Tax |
|
247.330 |
167.200 |
55.700 |
|
Tax |
|
80.250 |
54.250 |
24.000 |
|
Provisions and contingencies |
|
000 |
000 |
0.000 |
|
Profit After Tax |
|
167.080 |
112.950 |
31.700 |
|
Extraordinary Items |
|
000 |
000 |
0.000 |
|
Prior Period Expenses |
|
000 |
000 |
0.000 |
|
Other Adjustments |
|
000 |
000 |
0.000 |
|
Net Profit |
|
167.080 |
112.950 |
31.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.59 |
8.22 |
8.38 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.84 |
12.43 |
12.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.73 |
22.76 |
25.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.27 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.53 |
0.39 |
0.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.45 |
2.41 |
2.48 |
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
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 |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
COMPANY PERFORMANCE
The Company registered an overall turnover growth of 17.30% at Rs. 14103.681 Millions for the financial year ended March 31, 2012 compared to Rs. 12024.089 Millions in the previous year. The operating margin for the current year was at 8.96% compared to 13.82% for the last year, down by 35.17%. Net Profit before Tax was lower by 35.09% at Rs. 961.106 Millions compared to Rs. 1480.647 Millions for the previous year. Net profit after taxation was also lower by 34.45% at Rs.647.717 Millions compared to Rs.988.072 Millions for the previous year mainly on account of: higher input costs, adverse impact of depreciation of the rupee against all currencies at Rs. 433.349 Millions, interest costs at Rs. 31.805 Millions and increase in Corporate Management fee paid to the parent company.
Export Sales de-grew by 20.33% at Rs. 224.812 Millions for the year ended March 31, 2012 compared to Rs. 282.194 Millions in the previous year.
The Industrial and Transportation business grew by 24.56%; Health Care business grew by 13.61%: Display and Graphics business grew by 5.67%; Consumer and Office business grew by 24.78% and Safety, Security and Protection Services business grew by 15.55%.
The EPS (Basic and Diluted) of the Company for the year 2011-12 de-grew by 34.44% to Rs. 57.50 per share from Rs. 87.71 per share in the previous year 2010-11.
ABOUT COMPANY
Subject is the Indian arm of 3M Company, USA. The Company markets about 7000 products in India with leading positions in health care; industrial markets; display and graphics; consumer and office; safety, security and protection services; and transportation. 3M is among the leading manufacturers of products for many of the markets it serves. In India, 3M has manufacturing facilities at Ahmedabad, Bangalore, Pune and has a R and D Center in Bangalore.
3M India manages its operations in five operating business segments: Industrial and Transportation Business; Health Care Business; Display and Graphics Business; Consumer and Office Business and Safety, Security and Protection Services Business. 3M India’s five business segments bring together common or related 3M technologies that enhance the development of innovative products and services and provide efficient sharing of business resources. These segments have worldwide responsibility for virtually all 3M product lines.
3M products are sold through numerous distribution channels, including directly to users and through numerous wholesalers, retailers, converters, distributors and dealers in a wide variety of trades in many countries around the world. The Management of the Company believes that the confidence of wholesalers, retailers, converters, distributors and dealers in 3M and its products has contributed significantly to 3M India's growth and its position in the marketplace.
GLOBAL ECONOMIC
OVERVIEW
The global economic environment, which has been tenuous at best throughout the year, turned sharply adverse in September 2011 owing to the turmoil in the euro-zone, and questions about the outlook on the US economy provoked by rating agencies. The developments over the last year in major economies of the world have not been encouraging. Though the Indian economy may not be as adversely impacted, it will not be immune to the external environment and will likely see some challenges as well. There is an apprehension that the process of global economic recovery that began after the financial crisis of the 2008 is beginning to stall and the sovereign debt crisis in the euro-zone area may persist for a while. The global economy is expected to grow by 3.3 per cent in
2012 compared to 3.8 per cent in 2011 as per the International Monetary Fund’s (IMF) January 2012 update of the World Economic Outlook (WEO).
INDIA ECONOMIC
OVERVIEW
Managing growth and price stability were the major challenges of macroeconomic policymaking. In 2011-12, India found itself in the heart of these conflicting demands. The Indian economy was estimated to grow by 6.9 per cent in 2011-12, after having grown at the rate of 8.4 per cent in each of the two preceding years indicating a slowdown (as per the Economic Survey February 2012 report). At the same time, sight must not be lost of the fact that, by any cross-country comparison, India remains among the front-runners. With agriculture and services continuing to perform well, India’s slowdown can be attributed almost entirely to weakening industrial growth. The manufacturing sector grew by 2.7 per cent and 0.4 per cent in the second and third quarters of 2011-12. Inflation as measured by the wholesale price index (WPI) was high during most of the current fiscal year, though by the year’s end there was a clear improvement. Food inflation, in particular, has come down to around zero, with most of the remaining WPI inflation being driven by non-food manufacturing products. Monetary policy was tightened by the Reserve Bank of India (RBI) during the year to control inflation and curb inflationary expectations. The slowing inflation reflects the lag effect of actions taken by the RBI and the government. Reflecting the weak manufacturing activity and rising costs, revenues of the centre have remained less than anticipated; and, with higher than budgeted expenditure outgo, a slippage is expected on the fiscal side.
Growth in India is moderating more than was expected earlier. The baseline projection of GDP growth for 2011-12 has been revised downward to 6.9% on the basis of the macro-economic situation prevailing (as per the Economic Survey February 2012 report). It is likely to be below potential during 2011-12, but is expected to recover at a modest pace in 2012-13. The slack in investment due to delay in implementation of key policies and reforms may keep the pace of recovery low. Inflation has started to fall, broadly in line with the projected trajectory. Nonetheless, price pressures remain, with risks emanating from depreciation of the rupee by over 16% in 2011, accelerating prices of imported goods and services and rising fiscal deficit.
INDUSTRY- CHALLENGES
AND OUTLOOK
Industrial-sector growth during the current financial year is expected to be between 4 and 5 per cent. At this rate, the annual growth would be less than the annual growth rates achieved in the recent past and far below the potential growth rate. The challenge in the short term would, therefore, be to shore up business sentiment, spur investment in productive activities, and identify bottlenecks that can be removed in a reasonably short period of time. The government has already made some quick moves to clear bottlenecks in some critical sectors such as coal and power and is also pushing forward project implementation in some key infrastructure sectors. With the easing of headline inflation, moderation in commodities prices in the international market, and revival of manufacturing performance in recent months in the major economies, India’s industrial sector is expected to rebound during the next financial year
INDUSTRIAL AND
TRANSPORTATION BUSINESS:
The Industrial and Transportation Business Segment serves a broad range of markets, such as general industry, appliances, paper and packaging, food and beverage, electronics, automotive Original Equipment Manufacturer (OEM), automotive aftermarket (auto body shops and retail) to name a few. Their Industrial and Transportation business has products that include tapes, a wide variety of coated and non-woven abrasives, adhesives, specialty materials, components and products that are used in the manufacture, repair and maintenance of automotive, marine, aircraft and specialty vehicles. Major products under this segment include vinyl, polyester, foil and specialty industrial tapes and adhesives: Scotch Masking Tape, Scotch Filament Tape and Scotch Packaging Tape; Functional and Decorative Graphics; Abrasion-Resistant Films, Masking Tapes and Other Specialty Materials.
HIGHLIGHTS
· Growth in sales which is attributed to market share gains, account penetration, organic growth and new product introductions.
· Continuous development and implementation of specific programs focused on markets like Automotive OEMs and Tier 1 Auto component manufacturers, auto-aftermarket.
· Further expansion in the small and medium enterprises segment with specific product lines.
· Slow down in mobile hand held manufacturing and mass transit equipment manufacturing negatively impacted sales growth into these segments.
HEALTH CARE BUSINESS
Their Health Care business segment serves markets that include large multi-specialty hospitals and small clinics, dental and orthodontic practitioners, processed food manufacturers and pharmaceutical companies. Their offerings include medical and surgical supplies, medical devices, skin and wound care and infection prevention products and solutions, drug delivery systems, dental and orthodontic products and food safety products.
HIGHLIGHTS
· Work is in progress to set up an exclusive Healthcare Manufacturing facility in Ranjangaon. The facility will have capability to manufacture expanded range of medical products.
· A Customer Training Centre has been set up in Gurgaon which has designated areas that closely simulate the Operating Room (OR), Intensive Care Unit (ICU), Central Sterile Supply department (CSSD) in hospitals. It also has a dental simulation centre and a Food Safety lab.
· The Company is actively contributing to improve the standards of Healthcare Industry through its education initiatives. We have collaborated with renowned accreditation bodies like National Accreditation Board for Hospitals and Healthcare Providers (NABH) and Joint Commission International (JCI) for joint programs across the country.
· Food Safety business has established close customer contact with Diary, Beverage and other Food processing Industry
SAFETY, SECURITY AND
PROTECTION SERVICES BUSINESS
Safety, Security and Protection Services business segment serves a broad range of markets that increase the safety, security and protection of workers, facilities and systems. Major product offerings include personal protection products, brand and asset protection solutions, border control products, passive fire protection products for industries and commercial establishments, track and trace products, cleaning and hygiene products for the hospitality industry.
HIGHLIGHTS
· Increasing trend in adoption of Safety and Security practices within corporates saw a spurt in demand for personal protection, brand and asset protection, border control, passive fire protection products and track and trace solutions.
· Continued double digit growth in IT, ITES and Hospitality Sector has ensured good demand for cleaning and hygiene products.
· Foray into relatively new segments like Water Authority, Hospitals, Railways and Defense sector with Innovative New products will accelerate growth for the business.
· Growth from Infrastructure, Oil and Gas Pipeline sector has been modest.
CONSUMER AND OFFICE
BUSINESS:
3M addresses the B2C market, through its portfolio of power brands such as – Scotch-Brite ® brand, that includes a products addressing the needs of Utensil Care, Floor Care & Wiping segments; Scotch ® brand, addressing the Home and Office tapes, Adhesives, Packaging protection platforms Post-it® brand with a product range of Note Pads, Dispensers, Flagging solution, Labels and Scotchguard® brand addressing the stain protection market. These brands are swiftly gaining inroads into the Indian households, delighting the consumers with their performance.
HIGHLIGHTS
· The Scotch-Brite® brand introduced a number of products to help the Indian housewife, to address the floor care market; including some from our international range, such as Buttefly Mop, Flat Mop etc.
· The Communication support on Mass media was further increased, with the brand gaining the credibility of being the ‘HELPING HAND’ for the housewife.
· The “KITCHEN QUEEN CONTEST” undertaken by Scotch-Brite ®, associating with Tarla Dalal, was a big success in the Metro towns.
· In the stationary category, under the Scotch® brand, the Magic Tape introduced tapes in the dispenser format at various price points making it affordable even for the students market.
· Post-it ® brand also introduced a special range of ‘Sticky’ Note pads, Page markers and Flags for the students market.
DISPLAY AND GRAPHICS BUSINESS
Display and Graphics Business is an amalgamation of four divisional subsets- the Traffic Safety Systems Division (TSSD), the Commercial Graphics Division (CGD), the Architectural Markets Division (AMD) and the Mobile Interactive Solutions Division (MISD). TSSD offers a host of road safety services and motor vehicle safety solutions. The offerings include retro reflective traffic signs for highways and cities, pavement marking and vehicle registration products and services. CGD portfolio includes products like films, inks and digital signage products which help create static and dynamic graphics for retail signs, buildings, vehicles, commercial-space exteriors and interiors as also a multi-segment brand-owner focus service offering. AMD offers wall and glass cladding products coupled with architectural interior services and environmental graphics for home and office spaces. MISD caters to the electronic displays market addressing the needs for projection systems, computer and ATM-screen privacy Filters and brightness enhancement films for television, avionics and automotive displays.
HIGHLIGHTS
The Traffic Safety Systems Division has seen strong growth in its core business of supplying Reflective Sheeting for Highway signage. Roadway maintenance services have seen robust growth and a healthy order book with projects being executed for most private concessionaires and infrastructure majors. Focus on the Road Safety by various local and national bodies has helped increase sales of conspicuity tapes both in the After-Market and OEM accounts.
• The Commercial Graphics Division has seen modest growth in the core business of Flexible substrates for Graphics Applications. Brand Owner Services, which includes turn-key branding and graphics solutions, has a healthy order pipeline with projects being executed for major private banks and retail chains in India.
• The Architectural Markets Division has begun delivering substantial growth with its focus on Surfaces (Glass and Walls). Channel Expansion, Key Account Management and Local Conversion, coupled with turn-key project offering have helped build a strong base for the business to grow at a healthy pace.
• The Mobile Interactive Solutions Division has seen increased penetration of its privacy filters for Laptops and Computers and expects strong growth for visual privacy products in the Mobile and Handheld Market. Soft Launch of the hand held projector products was well received and is expected to boost sales in the next year with better products and features.
OUTLOOK
For the year 2012-13, the Company expects the sales growth and related incremental income, in addition to expected productivity improvements, selling price increases in excess of raw material, inflation, and other benefits, should help offset the items that will negatively impact earnings. This expected sales growth and related incremental operating income is considered after taking into account factors such as; price increase initiatives, increase in productivity, and sustained investments in Infrastructure by the State and Central Governments with more focus on urban transportation, major highway projects and focus on health care etc. Increased per capita income, increased liquid fund in market, higher discretionary spending, growing aspirations of the Indian middle class, growth of retail credit are the other key drivers of the economy this year. Your Company will continue to focus on its localization efforts, innovative Research and Development of new customer segments and expansion of current market segments to secure competitive growth.
Forward-looking statements as mentioned above may involve risks and uncertainties that could cause results to differ materially from those projected. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors.
STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2012
(Rs. In Millions)
|
SI No |
|
3 Months Ended |
3 Months Ended |
9 Months Ended |
|
|
Particulars |
December 31,2012 |
September 30,2012 |
December 31,2012 |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
PART-I |
||||
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net Sales/income from operations (net of excise duty) |
3683.995 |
3774.171 |
114760.51 |
|
|
(b) Other Operating Income |
56.777 |
56.807 |
1744.87 |
|
|
Total Income from
operations (net) |
3740.772 |
3830.978 |
116505.38 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of materials consumed |
1615.401 |
1568.998 |
4783.154 |
|
|
b) Purchases of stock-in-trade |
522.120 |
551.659 |
2649.432 |
|
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
226.062 |
374.389 |
44.174 |
|
|
d) Employee benefits expense |
529.751 |
521.291 |
1565.499 |
|
|
e) Depreciation and amortisation expense |
93.527 |
88.048 |
266.383 |
|
|
f) Other expenses |
674.214 |
559.590 |
1858.138 |
|
|
Total expenses |
3661.075 |
3663.975 |
11166.780 |
|
3 |
Profits from
Operations before Other Income, Finance costs and Exceptional Items (1-2) |
79.697 |
167.003 |
483.758 |
|
4 |
Other Income |
3.387 |
18.398 |
46.015 |
|
5 |
Profit from
ordinary activities before Finance Costs and Exceptional items (3+4) |
83.084 |
185.401 |
529.773 |
|
6 |
Finance Costs |
27.414 |
18.198 |
59.573 |
|
7 |
Profit from ordinary
activities after Finance Costs but before Exceptional items (5-6) |
55.670 |
167.203 |
470.200 |
|
8 |
Exceptional items |
|
|
|
|
9 |
Profit from
Ordinary Activities before tax (7+8) |
55.670 |
167.203 |
470.200 |
|
10 |
Tax Expenses |
|
|
|
|
|
a) Current Tax |
(90.274) |
92.068 |
127.968 |
|
|
b) Deferred Tax |
114.230 |
(37.819) |
30.482 |
|
|
Total (a+b) |
23.956 |
54.249 |
158.450 |
|
11 |
Net Profit from
Ordinary Activities after tax (9-10) |
31.714 |
112.954 |
311.750 |
|
12 |
Extraordinary items (Net of tax expense) |
|
|
|
|
13 |
Net Profit for the
period (11-12) |
31.714 |
112.954 |
311.750 |
|
14 |
Share of profit/(loss) of associates |
|
- |
|
|
15 |
Minority interest |
|
|
|
|
16 |
Net Profit after taxes,
minority interest and share of profit/(loss) of associates(13-14-15) |
31.714 |
112.954 |
311.750 |
|
17 |
Paid up Equity Share Capital (Face Value of Share Rs. 10/- each) |
112.651 |
112.651 |
112.651 |
|
18 |
Reserves Excluding Revaluation Reserves as per Balance Sheet of previous accounting year |
|
|
|
|
19.i |
Earnings Per Share (before extraordinary items) (of Rs. 10/- each) (not annualised) |
|
|
|
|
|
a) Basic |
2.82 |
10.03 |
27.67 |
|
|
b) Diluted |
2.82 |
10.03 |
27.67 |
|
19. ii |
Earnings Per Share (after extraordinary items) (of Rs. 10/- each) (not annualised) |
|
|
|
|
|
a) Basic |
2.82 |
10.03 |
27.67 |
|
|
b) Diluted |
2.82 |
10.03 |
27.67 |
|
PART - II |
||||
|
|
A - PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
Number of Shares |
2.703.070 |
2,703.070 |
2,703,070 |
|
|
Percentage of Shareholding |
24.00% |
24.00% |
24.00% |
|
2 |
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
Number of Shares |
NIL |
NIL |
NIL |
|
|
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 |
8,562,000 |
8,562,000 |
8,562,000 |
|
|
Percentage of Shares (as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
|
Percentage of Shares (as a % of the total share capital of the company) |
76.00% |
76.00% |
76.00% |
|
|
B - INVESTORS
COMPLAINTS |
3 Months ended |
|
|
|
|
|
December 31 2012 |
|
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
|
|
Received during the quarter |
6 |
|
|
|
|
Disposed of during the quarter |
6 |
|
|
|
|
Remaining unresolved at the end of the quarter |
Nil |
|
|
Notes:
1 The above Financial Results were reviewed by the Audit Committee in its meeting held on January 28, 2013 and approved by the Board of Directors of the Company at its meeting held on the same day.
2 The Company during the quarter has received an order dated 14th December. 2012 from The Commissioner of Customs demanding differential duty, interest and penalty of Rs.196.151 Millions, contending the availment of concessional import duty in respect of some of its products for which a demand notice was served on the company on 15th January, 2013 for payment of the above amount. The company has given a reply vide letter dated 24th January, 2013 against the demand notice. The company on the basis of legal opinion received, intends to file an appeal against the order including for obtaining a stay against any recovery proceedings that may be initiated and accordingly no liability has been recognised in the books.
3 Current tax for the quarter and for the nine months ended December, 2012 includes an amount of Rs. 5.894 Millions towards tax on Transfer Pricing adjustments made by the Company relating to the financial year ended March 31, 2012.
4 Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organisation structure as well as the differential risks and returns of these segments.
5 Segment revenue, results and capital employed figures include the respective amounts identifiable to each of the segments. Other unallocable income net off unallocable expenditure are towards common services to the segments which are not directly identifiable to the individual segments as well as those at a corporate level which relate to the Company as a whole.
6 Corresponding previous quarters'/years' figures are regrouped wherever necessary.
FIXED ASSETS:
· Land
· Buildings
·
·
· Plant and Machinery
· Furniture and Fixtures
· Office Equipment
· Data Processing Equipment
· Vehicles
· Goodwill
· 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.54.05 |
|
|
1 |
Rs.83.45 |
|
Euro |
1 |
Rs.72.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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.