MIRA
INFORM REPORT
|
Report Date : |
21.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
VOLTAS LIMITED |
|
|
|
|
Registered
Office : |
Voltas House,
"A", |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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|
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Date of
Incorporation : |
06.09.1954 |
|
|
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|
Com. Reg. No.: |
11-009371 |
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Capital
Investment / Paid-up Capital : |
Rs. 330.744 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29308MH1954PLC009371 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMV07842C MUMV07713G NGPV00559G MUMV04539D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACV2809D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing of
Air Conditioners, Refrigeration Equipments, Engineering, Electrical and Agricultural
Equipments. |
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|
|
|
No. of Employees
: |
9994 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 54000000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a part of TATA Group. It is a well established and reputed
company having good track record. There appears slight dip in its profitability
during the current year. However, the general financial position of the company seems to be
strong. Liquidity of the company is good. Performance capacity of the company
appears to be high. Subject gets good support from its holding company. 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 business dealings usual trade terms
and condition. |
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 |
ICRA |
|
Rating |
Fund Based Limit = AA |
|
Rating Explanation |
Having high degree of safety regarding timely servicing of financial
obligation it carry low credit risk |
|
Date |
February 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
|
Name : |
Mr. Rajesh Bhutia |
|
Designation : |
Assistant Company Secretary |
|
Contact No.: |
91-22-66656666 / 254 |
LOCATIONS
|
Registered
Office : |
Voltas House
"A", |
|
Tel. No.: |
91-22-56656666/
46102000/ 22618131 |
|
Fax No.: |
91-22-56656311/
22/ 46102331/ 22618504 |
|
E-Mail : |
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|
Website : |
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Factory 1 : |
Thane Plant: 2nd |
|
Tel. No.: |
91-22-67920111 |
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Fax No.: |
91-22-25343258 |
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|
|
|
Factory 2 : |
Uttarakhand
Plant (EM AND RBG) Plot No.1, Sector 8,, I.I.E. Pant Nagar Industrial Area, District |
|
Tel. No.: |
91-5944-250006 / 8 |
|
|
|
|
Factory 3 : |
Dadra Plant (EM AND RBG) Shreenath
Industrial Estate, C Building, Survey No.197, Near Dadra Check Post, Dadra –
396 230, |
|
Tel. No.: |
91-260-6619999 / 2669648 |
|
Fax No.: |
91-260-2669647 |
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Factory 4 : |
Uttarakhand Plant (UPBG) Plot Nos.2-5,
Sector 8 I.I.E. Pantnagar Industrial Area, District Udham Singh Nagar,
Rudrapur - 263 145, |
|
Tel. No.: |
91-5944-250009 |
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|
|
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Overseas
Office 1 : |
Tata Limited ( 18, |
|
Tel. No.: |
44-207-2358281
/ 8 (Board Line) |
|
Fax No.: |
44-207-2358727 |
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E-Mail : |
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Overseas
Office 2 : |
Voltas Limited ( |
|
Tel. No.: |
00971 (0) 2
6504511 (Board Line) |
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Fax No.: |
00971 (0) 2
6504341 00971 (0) 2
6504361 |
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E-Mail : |
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|
|
|
Overseas
Office 3 : |
Saudi Ensas Company for Engineering
Services WLL P O Box No. 8292, Salama Centre, Tower 5B,
3rd Floor, Prince
Sultan Street, Jeddah
21482 Kingdom
of Saudi Arabia |
|
Tel. No.: |
9662 6831466,
6165957 / 8 / 9 (Board Line) |
|
Fax No.: |
9662 69115400 |
|
E-Mail : |
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Overseas
Office 4 : |
Voltas Limited ( 4th Floor, Zayani
House 419, Road 1705, Diplomatic Area, |
|
Tel. No.: |
9731-7581979 |
|
Fax No.: |
9731-7581320 |
|
E-Mail : |
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Overseas
Office 5 : |
Voltas Limited ( Al |
|
Tel. No.: |
974 44569941 / 6 /
7 (Board Line) |
|
Fax No.: |
974 44551268 |
|
E-Mail : |
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Overseas
Office 6 : |
Voltas Limited ( |
|
Tel. No.: |
+ 966 2 6831466 |
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|
|
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Overseas
Office 7 : |
Voltas Limited ( |
|
Tel. No.: |
65
- 63366778 (Board Line) |
|
Fax No.: |
65
- 63366766 |
|
E-Mail : |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Ishaat
Hussain |
|
Designation : |
Chairman cum
Managing Director |
|
Date of Birth |
02.09.1947 |
|
Qualification |
Chartered
Accountant, |
|
Date of
Joining |
26.04.1999 |
|
Other
Directorship |
|
|
|
|
|
Name : |
Mr. Sanjay Johri |
|
Designation : |
Managing Director |
|
Date of Birth |
10.02.1953 |
|
Qualification |
Masters in Economics – Delhi School of Economics |
|
Date of
Joining |
23.04.2010 |
|
Other
Directorship |
Simto Investment Company Limited |
|
|
|
|
Name : |
Mr. Nasser Munjee |
|
Designation : |
Director |
|
|
|
|
Name : |
N.N Tata |
|
Designation : |
Director |
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|
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|
Name : |
J.S. Billimoria |
|
Designation : |
Director |
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|
|
|
Name : |
S.N. Menon |
|
Designation : |
Director |
|
Date of Birth |
20.09.1946 |
|
Qualification |
M.A. (History), Delhi University Hubert H. Humphery North-South Fellowship under the Fulbright Programme – University of Minnesota, USA |
|
Date of
Joining |
22.09.2008 |
|
Other
Directorship |
· West Bengal State Electricity Distribution Company Limited · Mcleod Russel India Limited · Tayo Rolls Limited · Nicco Parks and Resorts Limited · Bengal Peerless Housing Development Company Limited · Fullerton India Credit Company Limited |
|
|
|
|
Name : |
Nani Javeri |
|
Designation : |
Director |
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|
Name : |
R.N. Mukhija |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Vinayak Deshpande |
|
Designation : |
Director |
|
Date of Birth |
21.07.1957 |
|
Qualification |
B.Tech (Chemical Engineering) IIT, Kharagpur |
|
Date of
Joining |
14.02.2012 |
|
Other
Directorship |
· Tata Projects Limited · Artson Engineering Limited · Nelco Limited · Kennametal India Limited |
KEY EXECUTIVES
|
Name : |
Mr. V. P.
Malhotra |
|
Designation : |
General Manager –
Taxation and Company Secretary |
|
|
|
|
Name : |
Mr. Rajesh Bhutia |
|
Designation : |
Assistant Company Secretary |
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|
Audit
Committee : |
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|
|
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Remuneration Committee : |
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|
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Shareholders/
Investors Grievance Committee : |
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Corporate
Management : |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
99753480 |
30.15 |
|
|
99753480 |
30.15 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
99753480 |
30.15 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
18405828 |
5.56 |
|
|
979218 |
0.30 |
|
|
65684741 |
19.85 |
|
|
71631463 |
21.65 |
|
|
156701250 |
47.36 |
|
|
|
|
|
|
8589261 |
2.60 |
|
|
|
|
|
|
59596131 |
18.01 |
|
|
940476 |
0.28 |
|
|
5304142 |
1.60 |
|
|
89850 |
0.03 |
|
|
2918832 |
0.88 |
|
|
2295460 |
0.69 |
|
|
74430010 |
22.49 |
|
Total Public shareholding (B) |
231131260 |
69.85 |
|
Total (A)+(B) |
330884740 |
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) |
330884740 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Air Conditioners, Refrigeration Equipments, Engineering, Electrical and
Agricultural Equipments. |
||||||||||
|
|
|
||||||||||
|
Products : |
·
Refrigerators
Household Compression Type ·
Air Conditioning
Machines Window or Wall Types Self Contained ·
Refrigerating Equipment Absorption Heat Pumps
and Centrifugal Chillers |
GENERAL INFORMATION
|
No. of Employees : |
9994 (Approximately) |
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
· State Bank of India · Bank of India · Punjab National Bank · Citibank N. A. · BNP Paribas · Export - Import Bank of India · The Royal Bank of Scotland N.V. ·
Credit Agricole Corporate and Investment Bank Overseas
|
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Messrs Deloitte
Haskins and Sells Chartered
Accountants |
|
|
|
|
Solicitors : |
|
|
|
|
|
Membership : |
Confederation of
Indian Industry |
|
|
|
|
Associates : |
· Brihat Trading Private Limited ·
Voltas Material Handling Private Limited
(w.e.f. 1-5-2011) |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Joint Ventures : |
· Universal Voltas L.L.C. · Lalbuksh Voltas Engineering Services and Trading L.L.C. (upto 30-3-2011) · Naba Diganta Water Management Limited · Olayan Voltas Contracting Company Limited (w.e.f. 8-2-2012) · Universal Weathermaker Factory L.L.C. · AVCO Marine S.a.S. (Under liquidation) · Agrotech Industries Limited (Under closure) |
|
|
|
|
Promoter holding
together with its subsidiary more than 20% |
Tata Sons Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
600000000 |
Equity Shares |
Re.1/- each |
Rs.600.000
millions |
|
4000000 |
Redeemable Preference Share |
Rs.100/- each |
Rs.400.000
millions |
|
|
Total |
|
Rs.1000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
330884740 |
Equity Shares |
Re.1/- each |
Rs.330.885
millions |
|
|
Less: Calls in Arrears |
|
Rs.0.141 millions |
|
|
Total |
|
Rs.330.744 Millions |
(a) Equity Shares: The Company has one class of equity shares having a par value of Rs.1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 to their shareholding and are subject to preferential rights of the Preference shares (if issued).
(b) A reconciliation
of the number of shares outstanding at the beginning and at the end of the
reporting period:
|
Particulars |
Numbers |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
33,08,84,740 |
330.885 |
|
Shares outstanding at the end of the year |
33,08,84,740 |
330.885 |
(c) Shares in the
Company held by each shareholder holding more than 5 percent shares specifying the
number of shares held in the Company:
|
Particulars |
No. of Shares held |
% of Holding |
|
Tata Sons Limited |
8,81,31,780 |
26.64% |
|
Life Insurance Corporation of India |
2,96,54,894 |
8.96% |
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 |
330.744 |
330.743 |
330.737 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
13305.944 |
12386.648 |
9621.515 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
13636.688 |
12717.391 |
9952.252 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1777.941 |
939.055 |
190.806 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
1777.941 |
939.055 |
190.806 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15414.629 |
13656.446 |
10143.058 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1639.519 |
1835.380 |
1670.714 |
|
|
Capital work-in-progress |
40.330 |
6.086 |
76.112 |
|
|
|
|
|
|
|
|
INVESTMENT |
4674.083 |
3934.716 |
3399.666 |
|
|
DEFERREX TAX ASSETS |
261.463 |
169.636 |
190.347 |
|
|
Other Non-Current Assets |
1035.755 |
997.215 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7537.651
|
7547.574 |
6085.733 |
|
|
Sundry Debtors |
10073.126
|
9065.530 |
8472.800 |
|
|
Cash & Bank Balances |
2053.815
|
4250.646 |
4028.569 |
|
|
Other Current Assets |
7367.836
|
7579.790 |
4536.478 |
|
|
Loans & Advances |
3049.507
|
2585.913 |
2362.073 |
|
Total
Current Assets |
30081.935
|
31029.453 |
25485.653 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
13522.275
|
13239.836 |
9855.086 |
|
|
Other Current Liabilities |
6310.651
|
8167.729 |
8367.744 |
|
|
Provisions |
2485.530
|
2908.475 |
2456.604 |
|
Total
Current Liabilities |
22318.456
|
24316.040 |
20679.434 |
|
|
Net Current Assets |
7763.479
|
6713.413 |
4806.219 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15414.629 |
13656.446 |
10143.058 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
51697.633 |
51483.997 |
44933.747 |
|
|
|
Other Income |
1108.064 |
601.973 |
751.987 |
|
|
|
TOTAL (A) |
52805.697 |
52085.970 |
45685.734 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of raw materials, cost of jobs and services |
24913.211 |
22874.488 |
|
|
|
|
Purchase of traded goods |
14271.714 |
15662.019 |
|
|
|
|
(Increase) / Decrease in finished goods, work-in-progress and stock-in-trade |
(195.270) |
(1260.305) |
40595.845 |
|
|
|
Employee benefits expenses |
5519.692 |
5145.036 |
|
|
|
|
Other expenses |
4168.585 |
4594.751 |
|
|
|
|
Exceptional Items |
1509.527 |
(448.009) |
|
|
|
|
TOTAL (B) |
50187.459 |
46567.980 |
40595.845 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2618.238 |
5517.990 |
5089.889 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
259.040 |
130.811 |
69.569 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2359.198 |
5387.179 |
5020.320 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
285.733 |
164.546 |
163.925 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2073.465 |
5222.633 |
4856.395 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
554.759 |
1687.300 |
1414.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1518.706 |
3535.333 |
3442.195 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
886.762 |
820.554 |
622.540 |
|
|
|
|
|
|
|
|
|
Add |
Amount
Transferred to Foreign Projects Reserve |
0.000 |
0.000 |
27.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
200.000 |
2700.000 |
2500.000 |
|
|
|
Dividend |
530.000 |
661.769 |
661.769 |
|
|
|
Tax on Dividend |
90.000 |
107.356 |
109.912 |
|
|
BALANCE CARRIED
TO THE B/S |
1585.468 |
886.762 |
820.554 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
264.486 |
474.056 |
347.602 |
|
|
|
Commission Earnings |
148.324 |
135.651 |
176.926 |
|
|
|
Other Earnings |
98.526 |
50.438 |
62.202 |
|
|
TOTAL EARNINGS |
511.336 |
660.145 |
586.730 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
353.658 |
232.394 |
159.217 |
|
|
|
Finished Goods |
7742.867 |
4515.394 |
3890.721 |
|
|
|
Stores & Spares |
4632.956 |
2159.162 |
1564.782 |
|
|
|
Capital Goods |
26.228 |
3.478 |
11.099 |
|
|
TOTAL IMPORTS |
12755.709 |
6910.428 |
5625.819 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.59 |
10.68 |
10.40 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
1676.650 |
1,111.310 |
|
Total Expenditure |
|
1607.620 |
1,080.470 |
|
PBIDT (Excl OI) |
|
69.030 |
30.840 |
|
Other Income |
|
38.610 |
17.560 |
|
Operating Profit |
|
107.640 |
48.400 |
|
Interest |
|
10.680 |
6.750 |
|
Exceptional Items |
|
1.110 |
27.820 |
|
PBDT |
|
98.070 |
69.470 |
|
Depreciation |
|
5.980 |
5.940 |
|
Profit Before Tax |
|
92.090 |
63.530 |
|
Tax |
|
28.080 |
15.590 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
64.010 |
47.940 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
64.010 |
47.940 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.88
|
6.79 |
7.53 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.01
|
10.14 |
10.81 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.54
|
15.89 |
17.88 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.41 |
0.48
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.13
|
0.07 |
0.02
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35
|
1.28 |
1.23
|
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
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 |
DETAILS OF LITIGATION
Case Details
Bench-Bombay
Stamp No.: CAFST/24979/2012
Filing Date: 07.09.2012
Reg. No.: CAF/3234/2012
Reg. Date: 18.09.2012
Stamp No.: FAST/24978/2012 Main
Matter: FA/1424/2012
Petitioner: Hotel Oberoi Towers Now Known
as Respondednt: M/S
Voltas Limited
Petn. Adv : R.R. Gehani Resp. Adv.: P.M.
Palshikar for Respondent
Distrist : Mumbai
Bench: Single Category
: For Stay
Status : Pre- Admission Stage: Appels
for Admission – Fresh
Last Date: 21.01.2013
Last Coram: Hon’ble Shri Justics
Shrihari P. Davare
OPERATIONS
The global economic crisis continues to adversely impact all aspects of business and the economy. Volatile exchange, high interest rates and inflation continued to be an enormous challenge. This has resulted in the deferment of capital investment apart from creating a slowdown in business activity, also evidenced by the continuously declining IIP numbers. In view of this difficult situation, the Company’s consolidated Sales and Income from Operations were marginally lower at Rs.52190.000 Millions, as compared to Rs.52260.000 Millions last year. Profit after Tax, Minority Interest was Rs.1620.000 Millions, as against Rs.3570.000 Millions in the previous year, primarily due to the recognition of expected cost overruns caused by an Onerous international contract.
The performance of the Electro Mechanical business and in particular, the International Projects Business were impacted due to the Sidra Medical and Research Centre project under execution at Qatar. This is a large and prestigious, state-of-the-art hospital with world-class facilities with a total investment of approx. USD 2.5 billion and has been in execution since 2008. The Company’s share of work is valued in excess of Rs.10000.000 Millions and involves extensive coordination with multiple agencies and intermediaries. The design and build nature and complexity of the project, combined with the Client’s quest for attaining truly global standards has had an impact on various cost parameters. In addition to elongated project schedules and lapsed time, there have also been numerous difficulties and complications including the non-availability of Indian Workmen visas. The Company has in line with AS-7 accounted for the estimated cost of the project. These estimates have been finalized after an extensive techno commercial review by the Management taking cognizance of cost incurred and to be incurred, to complete the project on time, aggregating Rs.2770.000 Millions. The same has been reflected as Onerous Contract under Exceptional Items excluding Rs.440.000 Millions cost overrun accounted under ‘Cost of jobs’. Additional revenue claims will be recognized subsequently as per the accounting standard requirement, once they are crystallized and there is greater clarity about the final outcome.
The Domestic Projects Business has performed comparatively well, despite the difficult economic conditions. However, managing cost and cash flow continues to be a challenge and there has been a slower pace of project movement combined with delayed payments leading to higher outstandings. As part of mitigation efforts, the Company has put in place various measures to reduce operational and administrative costs.
In addition, the Domestic Projects business has also been reorganized to comprehensively extract multiple synergies as well as offering a one-window solution to the Customer. Consequently, the Water Business and Rohini Industrial Electricals Limited (RIEL) has been integrated with the Domestic Electro Mechanical business. The performance of RIEL has been impacted largely owing to the proportion of ‘legacy’ orders with poor margins. The Company is making a concerted effort to develop new business while reducing its fixed costs, to become more competitive and profitable in times to come.
The consolidated order backlog for the entire Electro Mechanical business stands at Rs.42920.000 Millions and gives a healthy visibility for the coming year.
In view of transfer of Materials Handling business to a Joint Venture with Kion, the figures for the Engineering Products and Services for the period are not directly comparable with the previous year. The Mining and Construction business has been impacted by high interest rates and the poor pace of environmental clearance for mining activities. Global industry consolidation and takeover of the mining businesses of the Company’s erstwhile major Principals (Bucyrus and Le-tourneau by Caterpillar and Joy, respectively) have affected the Engineering Products and Services business. While Voltas continues to retain some maintenance contracts, Caterpillar has transferred part of its India business to its own dealers. Service greements with Joy/P and H India are currently under discussion. In the meantime, business management is making a determined effort to manage costs and take advantage of each growth opportunity.
The Textile Machinery business has performed well, achieving growth on the back of a sizeable order book built earlier. New investments in the Textile industry are however lagging given the poor sentiment, cyclical nature and pollution based environment issues being encountered.
In spite of intense competition, unfavorable climatic conditions and poor consumer sentiment, Voltas has successfully maintained its No. 2 market position in the Unitary Cooling business nationally. At the same time, it has held onto its No. 1 position in the important market of Northern India and is making inroads in other regions as well. The industry as a whole has suffered aggregated sales volume de-growth of around 20% during the year under review. Voltas however contained the volume shortfall and has managed to do comparatively well on the back of mix and pricing corrections. The Company continued its focus on Tier-II and Tier-III towns and the thrust in commercial refrigeration products has also yielded growth over the period.
Over the year, the Company has also undertaken extensive market research, the findings of which were used to revitalize the Voltas Brand communication.
FINANCE
Liquidity in the domestic markets remained tight throughout the year on account of high inflation and periodic increases in Repo and Reverse Repo rates by Reserve Bank of India. In the Domestic Projects business, the high cost of capital resulted in delayed payments and consequently, higher number of days receivables. This was partly compensated by an increase in Trade payables to manage the cash flows of the business. The unpredictable weather and de-growth of the Consumer Durables business led to high levels of inventory for the major part of the year as compared to the past, resulting in increased capital employed.
The international markets were also under stress in 2011-12. During the year under review, deployment of significant resources, combined with a delay in execution of a large design and build project at Qatar caused a significant strain on the Company’s finances. A part of surplus funds had to be liquidated to fund the cost overruns at Sidra while delays in settlements of some large projects also affected the capital employed by the international projects business. The above factors led to a negative cash flow from Operating activities in the current year.
Despite the above, the liquidity position of the Company was satisfactory with liquid investments of Rs.2210.000 Millions. Borrowings at a consolidated level of Rs.2250.000 Millions were mainly on account of certain project specific overseas requirements.
The Interest Rate scenario in India is at a peak and expected to taper down in a gradual manner. The Management continues to focus regularly on its cash flow including inventory and receivables. The surplus funds are invested in Debt Mutual Funds and monitored regularly by the Investment Committee of the Board to maximize returns with minimal risk.
TATA BUSINESS
EXCELLENCE MODEL (TBEM)
In its Business Excellence Journey, the Company continued its focus on carrying out assessments, to identify areas for improving the operational efficiencies. Accordingly, External Assessments at the Tata Group level were carried out by teams of qualified assessors in respect of Unitary Cooling Products business and Engineering Projects business (comprising Mining and Construction Equipment business, Textile Machinery business and the manufacturing operations of Materials Handling business). The performance of Unitary Cooling Products business was rated as "Emerging Industry Leader" and Engineering Products business was rated as "Good Performance", based on the findings of the assessments
The Company has developed a pool of trained TBEM Assessors to support these Business Excellence initiatives and also to provide External Assessors at the Group level. Further, various initiatives to strengthen quality, namely Process Management, Process Improvement, Total Quality Management at the manufacturing plants and other improvement initiatives are under way on a continuous basis.
IT INITIATIVES
The Company continued to invest in developing IT-based solutions that would support improvements in organisational efficiency.
During the year, the Company moved its entire collaboration platform to Google Cloud. This has enabled all employees to access the e-mails from any location and any device, at any time. Additionally, all the advanced features- such as voice and video communication, document-sharing and web conferencing - have been made available to all employees, thereby improving their productivity.
IT also enabled compliance monitoring by implementing (a) tracking tool for legal cases (b) SAP authorization control through a Governance cum Risk management compliance tool and (c) assets-tracking tool for license compliance.
COMMUNITY DEVELOPMENT
The Company shares the Tata Group's commitment for developing a strong self-reliant community as part of its business process. Through its Core Competency program, the Company extended its technical skills in Air conditioning and Refrigeration to under-privileged youth, supplemented with soft-skills training, to help them build sustainable livelihoods. It also helped in expanding the pool of young employable talent and expertise for the benefit of both society and business. The Core Competency projects were pursued in alliance with Joseph Cardijn Technical School and Bosco Boys Home in Mumbai, as well as GMR Varalakshmi Foundation in Hyderabad. In addition, there were several community initiatives driven by volunteer activity, with a focus on mentoring orphans and underprivileged children, community service for the aged and the physically/mentally challenged, income generation schemes and blood donation camps.
The Company supports the national endeavour to bring about equality of opportunity for the socially and economically disadvantaged SC/ST communities, through its Affirmative Action (AA) Policy. The Company has re-constituted its Cross Functional Team on AA, and reviewed its engagement in the Tata Group's four initiative areas of Employment, Employability, Entrepreneurship and Aid in Education. The Company has enhanced the representation of SC/ST in recruitment at all levels, and expanded the pool of employable personnel from SC/ST through mass skills up-gradation endeavours. As part of Aid-in-Education, the Company gives scholarships to certain deserving SC/ST students pursuing Engineering courses. The Company plans to promote 'Supplier Diversity' by developing vendors for products/services through the Dalit India Chamber of Commerce and Industry (DICCI).
The Voltas Organization of Women (VOW) is a Public Charitable Trust founded in 1965 and registered in 1975. VOW's membership and leadership is exclusively drawn from the Company's women employees and spouses of male employees. VOW assists the needy people in the fields of health and education, conducts programmes on atrocities and domestic violence against women, and is active in issues concerning tribal women through its various partners. In 2011-12, VOW supported the Bethany Society towards formation of Self-Help Groups for Women whose members are active in Gram Sabhas and income generation programs. VOW also supported the Shanti Avedna Sadan for terminally ill cancer patients and the Snehalaya Charitable Trust for vocational training for the mentally and physically challenged, besides giving medical relief to the very poor and needy.
GLOBAL COMPACT AND
CARBON DISCLOSURE PROJECT
The Company is a signatory to the UN Global Compact and continues its commitment to adhere to the principles of the Global Compact. The Communication on Progress (COP) for 2011-12 has been uploaded along with the Letter of Support on the Global Compact Site. The COP communicates publicly to the stakeholders on progress made in implementing the Global Compact's ten principles.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
The Company began the financial year 2011-12 under uncertain and challenging economic conditions, both at home and abroad, impacting all facets of business. In the domestic sphere, high interest rates and inflation continued, causing capital investments to be deferred and slowing down both business activity and consumption. The persisting symptoms of the global economic crisis continued to pose obstacles further impacting consumer confidence and sentiment. Against this difficult background, the Company's performance was more or less in line with the previous year, barring one project.
In its quest for future growth opportunities, the Company leveraged its diversified domestic capabilities to make an entry into some promising project segments and markets. At the same time, it strove to maintain its market share in consumer durables, while sustaining market place interest with new offerings.
Internationally, the thrust was to improve the inflow of orders, develop new business territories, optimize costs and refine processes towards being more competitive. The ongoing execution of the Sidra Medical and Research Centre at Qatar received special attention in the context of delays and cost overruns. The focus is now on the high quality, timely and efficient conclusion of the project to the entire satisfaction of the Client. Given the iconic nature of this project, it is expected that its successful completion would generate value in terms of the Company's standing and prospects in Qatar, which offers the most attractive growth opportunities in the Region.
Strategically, the Corporate Management is implementing a business philosophy that favours synergy between businesses, with greater cross-fertilization and sharing of resources as well as customers and prospects
Within the constraints of the economic climate, the Company stayed on its planned path towards 'Engineering Solutions for a Greener Tomorrow', built on the foundations of Tata values. This was especially evidenced by the increasing focus on 'Green Mark' and 'LEED' certification in MEP projects and Star-rating in room ACs.
Revenues and Operating Profits (Profit before exceptional items) of Voltas (standalone and consolidated) for the period between 2006-07 and 2011-12 are given below
ELECTRO-MECHANICAL
PROJECTS AND SERVICES
The domestic addressable market for Mechanical, Electrical and Plumbing (MEP) saw relatively low growth in built environment and urban infrastructure sectors as compared to last year. Although IIP numbers were disappointing, a small number of new projects emerged across the country in the industrial sector. The Company's domestic Electro-mechanical business was quick to seize these opportunities, helping to grow the domestic order book to the extent possible. The overall booking was, however, slightly lower than last year.
The Company played a major role in the internationally acclaimed Formula 1 Circuit in Greater NOIDA, by executing and delivering HVAC, electrical and plumbing systems within shortened time to meet the client's deadline. Having earlier successfully completed the Formula 1 Race Track project at Abu Dhabi as well as 9 stadia for the Commonwealth Games in Delhi, the Company has clearly established its capability in the sporting arena.
In the power sector, the Company was able to identify scope for its HVAC capabilities. As a result, it was able to increase its penetration by booking several projects such as MAHAGEN Co, Koradi, DB Power, India Bulls Power, Jai Prakash Power, to name a few.
The Company also successfully completed three large MEP projects in automobile manufacturing, namely Maruti (Manesar); Mahindra and Mahindra's Engine Design and R and D Facility (Chennai); and Tata Cummins' globally benchmarked facilities (Phaltan) for machining engine components.
Building on the momentum of the earlier successes in healthcare, the Company booked major hospital projects that will help maintain leadership in this segment. These include the Employees' State Insurance Corporation (ESIC) Hospital at Gulbarga and the Mumbai Trauma Hospital. With an order from GNFC for industrial refrigeration systems, the Company also consolidated its position in this project segment.
On the Products front, the Company achieved certain new milestones in its quest for better quality. Key achievements in this area include:
· Obtaining the approval of DSIR (Department of Scientific and Industrial Research) for the in-house R and D facility.
· Filing of a patent application for the innovative energy-efficient Vapour Absorption Machine (VAM) designed and developed by in-house R and D, featuring advanced Para Flow technology for minus 50C temperature application.
· Introduction of Eco-Cool Ductable split units using R410A refrigerant. These units are customized to leave a smaller carbon footprint over their life-cycle without compromising on performance standards.
· Introduction of an AHU connection kit for VRF systems, and also non-modular VRF condensing units of upto 30HP capacity, for better penetration in the market, wider application and more economical usage.
· Renewal of ISO 9001:2008 Certification for a further 3 year term.
Faced with the challenges of managing costs and cash flow in domestic projects, the Company has put in place several processes to reduce operational and administrative costs. It has simultaneously expanded its operations in electro-mechanical O and M contracts and AMC which will supplement the mainstream projects business. Overall, the Company's domestic electro-mechanical business was able to maintain its gross margins despite the economic pressure being experienced by the industry.
The Company's Water Treatment business increased its stand-alone order book by 55% over the previous year. New business included a large order of Rs.1650.000 Millions, from Tata Steel for its plant at Kalinganagar, Orissa. The project marks the arrival of the Company into the big league in water management projects in excess of Rs.1000.000 Millions value. This is well aligned with the Company's strategic decision to focus on large-value projects.
During the year, the Company executed several projects. In the industrial segment, they include: Water system for the steel melt shop in Rourkela for SAIL; an Effluent Treatment Plant with Zero Liquid Discharge at Durgapur; an Effluent Treatment Plant for the cold rolling mill at Bokaro and a Raw Water Treatment Plant for Tata Steel in Jamshedpur. In the urban infrastructure space, the projects under execution are the Drainage Pumping Stations in Kolkata; Raw Water Treatment Plant at Barrackpore, Kolkata; and Pumping stations at various locations in Kolkata under the city's environment improvement plan.
To address the long-term market prospects, a strategic organizational decision was taken to integrate the Water business as well as Rohini Industrial Electricals operations with the domestic Electro-mechanical business. This will provide the means of extending the reach to a substantially larger client base, while leveraging the existing country-wide network for business development, project execution and customer care. The businesses will benefit from greater 'single-window' relationships with common customers, such as those in the steel, power, oil and gas, and pharmaceutical sectors. The consolidation of various project domains will yield greater operational efficiency - a critical area that will help increase profitability.
Performance of Rohini Industrial Electricals continued to be disappointing in the face of poor margins and losses from carry forward 'legacy' projects attributable to its earlier management. New orders are being procured at reasonable margins and the business is making a concerted effort to reduce its fixed costs to become more competitive and profitable in the years to come.
The Company's international Electro-mechanical business continued to remain impacted due to the overall subdued market conditions in the Middle East. The crisis in Europe, conflict among regional powers and after-effects of Arab uprising continued to weigh down on sentiment within the Middle East region, although there was no perceptible impact in the Company's chosen geographies of Abu Dhabi and Qatar. The GCC countries continued to enjoy oil prices averaging over USD 100 per barrel, resulting in significant surpluses, especially in the countries where the Company operates.
In Abu Dhabi, there have been formal announcements from the Executive Council (Government Body) on the awarding of several large-scale infrastructure and healthcare projects. It is expected that these projects, previously kept on hold, will be awarded within the next two years. The Company has secured a sizeable and prestigious contract for Yas Retail Mall for approximately Rs.4800.000 Millions and is positioning itself for more awards in Abu Dhabi in the coming year.
Elongated project schedules combined with the design-and-build nature and complexity of the Sidra Medical and Research Centre project in Qatar has had an impact on various cost parameters. Based on an extensive techno-commercial audit conducted during the year, the Company has accounted for the estimated costs in accordance with Accounting Standard (AS-7) requirements. Additional revenue claims will be recognized at a later stage once they are crystallized and there is greater clarity about the final outcome. In the meantime, Management's attention is sharply focused towards the timely and cost effective completion of the project to the full satisfaction of the Client. In Qatar, the Company also secured a Rs.3600.000 Millions contract for the North Gate Mall project in the private sector, to be executed through a project-specific Joint Venture.
A major achievement for the Company was the satisfactory completion of Etihad Towers project in Abu Dhabi, consisting of approx. 5,00,000 sq.m. built-up space with 5 high rise towers and 4 levels of retail. Significant progress has also been made at the approx. Rs.8000.000 Millions Central Market Redevelopment project in Abu Dhabi consisting of two towers (one office, one residential) which is expected to be completed in FY 2012-13.
For the second consecutive year, the Company won the two most prestigious MEP awards in the Middle East, namely 'MEP Contractor of the Year' and 'MEP Project of the year' (for Etihad Towers). These awards reflect the industry's continued acknowledgement of the Company's performance and its ability to execute iconic developments, year after year.
In the new geographies of Kingdom of Saudi Arabia (KSA) and Oman, separate Joint Ventures have been established and registered to undertake MEP project opportunities. The Joint Venture in KSA - 'Olayan Voltas Contracting Company Limited' has secured an order of Rs.3600.000 Millions, for a utility complex in Riyadh. Through its Joint Venture in Oman (Voltas Oman LLC), the Company is aggressively bidding in the Oman market.
The existing Joint Venture in Abu Dhabi viz. Universal Voltas LLC, has performed well. Operating profit has more than doubled to UAE Dirhams 37 million by focusing on smaller value projects and O and M contracts. The profits of the other subsidiaries and joint ventures in the Electro-mechanical segment i.e. Weathermaker Limited in Jebel Ali Free Zone, Universal Weathermaker Factory LLC in Abu Dhabi were lower than the previous year owing to the economic slowdown in Dubai and increased competition in their market segments. Saudi Ensas for Engineering Services WLL, wholly owned subsidiary in KSA reported loss of Saudi Riyal 2 million.
UNITARY COOLING
PRODUCTS FOR COMFORT AND COMMERCIAL USE
The Indian room air conditioning industry remained under pressure during 2011-12. Sales were impacted by a short summer coupled with intermittent rains and by the generally negative market sentiments. Input cost pressure, partly passed on to customers, had an adverse impact on sales. Sales volumes declined by around 20% industry-wide, according to market estimates
While some of the established players lost significant market share, the Company maintained its market share, testifying to the strength of Voltas Brand.
The trend towards energy-efficiency continued to be a strong market driver, impelling more consumers to upgrade to higher star-rated products. There is also greater awareness about more efficient products (such as Inverter ACs), and those that use 'greener' refrigerants. The Company continued its leadership in energy efficiency with the widest range of 5-star products sold in the market, while remaining on its mission to promote the 'green' products.
Responding to market feedback, the Company launched new and updated range of 40 models of Window and Split ACs in 2011-12. The range gave buyers a spread of choice in terms of features, energy rating, price tag and cooling capacities. These were designed to meet their diverse preferences and tastes, across a spectrum of demographics and geographies. A case in point is the inclusion of colour panels, for which consumers had shown a liking.
The new launch was also the occasion for introducing a new platform, namely "All Weather" air conditioning, featured in a selection of models. The concept had been the outcome of detailed consumer research. The Company's intent was to break through the clutter and gain an edge by transcending the seasonality of the category and thus engage with consumers around the year. "All Weather" models are well equipped for all climatic conditions, with Intelligent Heating for the cold months, Active Dehumidifier for the monsoons, and of course High torque Compressor for the summers. With the support of a humorous and entertaining multi-media national campaign, this proposition was among the factors that propelled the brand to an all-time high market share of 22% in primary sales during the financial year.
To maintain its operating agility, the Company engaged larger numbers of contract manufacturers for outsourced assembly in many more locations across the country, judiciously mixed with in-house manufacturing. This had the added advantage of shortening the time-to-market, and reducing the Company's carbon footprint. Other notable achievements and recognitions won by the Company included:
· For business excellence: The TBEM Emerging Industry Leader Award.
· Employee engagement scores touched an all-time high of 4.1 (Grand Mean) as assessed by third-party research.
· The prestigious Readers' Digest Trusted Brand 2011, and Superbrand 2011-12.
The Company's Commercial Refrigeration business saw modest growth of around 4%, while chest freezers grew by 18%. Nevertheless, the Company retained its market leadership position in this segment.
Universal Comfort Products Limited (UCPL), the Company's wholly-owned subsidiary and manufacturing arm for room ACs, performed exceedingly well, with production capacity ramped up to 400,000 units and net profit of Rs.340.000 Millions as against Rs.270.000 Millions in the previous year.
OTHERS
The segment 'Others' consists of Lalbuksh Voltas Engineering Services and Trading LLC (Lalvol), a subsidiary company based in Sultanate of Oman, which is engaged in horticulture, water management and purification. Lalvol recorded turnover of Omani Riyal (OR) 3.359 million and net profit of OR 0.278 million for the year ended 31st December, 2011 as compared to turnover of OR 2.208 million and net profit of OR 0.482 million for the nine months period ended 31st December, 2010. The performance of Lalvol during the year ended 31st December 2011 was adversely affected by the political instability in Sultanate of Oman, coupled with the local unrest over the greater part of the year. As a result, many Government projects in water treatment, irrigation and landscaping were put on hold.
OPPORTUNITIES AND
OUTLOOK
ELECTRO-MECHANICAL
PROJECTS AND SERVICES
Going forward, the domestic electro-mechanical business is expected to be impacted by the prevailing headwinds in the global economy, as well as the continued prevalence of a dampened investment sentiment, high interest rates, and increased competition, all exerting pressure on profit margins.
The Company however expects some opportunities for its MEP offerings to arise from investments in the following key areas:
· In the industrial segment, with several multinationals making plans to commence manufacturing operations in India over the next few years.
· In commercial construction, serving the aggressive expansion in IT/ITES and Retail services.
· In infrastructure, for which substantial investments have been announced in both Public and Private sectors,
· Although their actual realisation will be dependent on numerous other factors.
· Built Environments, where growth is largely expected to be in Tier-2 and Tier-3 markets.
In the HVAC products space, the opportunities for growth are likely to arise from the application of technologies like VRF which are new to the Indian market, coupled with the low penetration of central air conditioning in India, especially in Tier-2 markets.
In order to suitably seize these opportunities, the Company has made strategic plans for growth, and taken various initiatives intended to:
· Match the customer's requirements with suitable product and service offerings.
· Maximise the synergies that arise from its capabilities in Electrical, Mechanical and Water Treatment solutions businesses.
·
· Improve efficiencies in project execution and thereby improve margins in projects business.
· Leverage in-house R and D capabilities for developing new differentiated products and providing customized solutions.
· Enlarge its bandwidth in Human Resources for meeting long-term growth aspirations.
The outlook for the water treatment industry is positive. The demand for water treatment solutions will increase, resulting from the rising stress on water usage caused by population growth, increasing urbanization and rapid industrialization, as well as from the strong regulatory pressure towards better water management. Going ahead, the Company's focus will be on providing world-class technologies and best-in-class services in water and waste water treatment to the Indian market. The Company will also look to expand its product range and introduce new offerings to form a more complete portfolio for the customers.
In the Middle Eastern market, oil prices are expected to average around USD 100 per barrel, generating surpluses available for investment. The Company is well placed to capitalize on these opportunities in its chosen geographies, on the strength of its strong presence, reputation and track record in the region. However competition is likely to remain intense, resulting in a somewhat subdued margin expectation.
The Abu Dhabi Government has announced its intention to undertake several large-scale projects in various segments. Multiple projects are also expected to be launched in Qatar in preparation for hosting the 2022 Football World Cup. In KSA, substantial opportunities are likely to spring from the State's latest budget, which targets large investment in infrastructure, housing, transportation and healthcare. As a result, the joint venture in KSA is expected to grow. Likewise, the joint venture in Oman is also projected to benefit from investment earmarked for health, education and housing.
The Company is also closely observing other potential growth markets in the region i.e. Iraq, Libya and Kazakhstan with a view to making an entry at an appropriate time, if the geo-political climate is deemed suitable and conducive.
ENGINEERING PRODUCTS
AND SERVICES
The Company's textile machinery business will realize the benefits of its carry-forward order book, as several of these orders will be up for execution in 2012-13. However, the economic environment must improve to secure long term growth. Some grounds for optimism are the anticipated reinstatement of the TUF scheme by the Government, as well as additional subsidies announced by the Governments of Maharashtra, Karnataka and Gujarat among others, to promote investment in Textiles.
In Mining and Construction Equipment business, the Company's own range of wheeled crushing and screening plants and cranes is seeing a pick-up in sales, with good prospects for growth, linked to the investments expected in infrastructure and road projects. There is also greater appreciation for the Company's off-shore services in Mozambique, with good prospects for more such opportunities and better penetration to follow.
UNITARY COOLING
PRODUCTS FOR COMFORT AND
COMMERCIAL USE
The domestic Room AC industry is expected to grow moderately by around 10%, taking into account the possibility of a tempering of momentum caused by a delayed summer and unseasonal rains ahead. However, rising disposable incomes and wages, coupled with perennially low penetration levels of ACs, will continue to drive long-term demand, further stimulated by the spread of electrification.
As consumers become increasingly conscious of energy efficiency, star-rated products will be in greater demand; the Company can expect to profit from its ongoing effort to sustain its initial lead by constantly upgrading its offerings with R and D-based features and innovations. A good market response is also expected for its newly-launched brand proposition of 'All-Weather ACs', which helps create a distinctive new differential suited to the domestic consumer.
To address significant demand coming from Tier-2 and Tier-3 markets, the Company will renew its efforts towards channel expansion beyond its current presence of 5,000+ touch points.
52 At the same time, the extreme volatility in forex movements bring in a degree of uncertainty in sourcing decisions from overseas vendors. Margins are likely to be eroded if the full impact of cost increases cannot be passed on to consumers in the given context of competition.
Growth in the Commercial Refrigeration segment is likely to be driven by the rising demand for quality products for end-user segments such as retail, dairy and brewery and cold chains. The Company, with its superior product development capabilities, good relationships with leading manufacturers and a strong brand, is well-placed to further consolidate its market leadership position.
THREATS
ELECTRO-MECHANICAL
PROJECTS AND SERVICES
The state of the global economy has a direct impact on the health of the Indian economy. If recovery in the US and Europe were to falter, its adverse impact could be felt across businesses in India, causing plans in infrastructure and industrial segments to be shelved for the time being.
It is expected that some reputed multinational project companies will make their move in the Indian market in the year ahead. A related threat continues to arise from the development of in-house MEP capabilities by Main Contractors, putting operating margins at risk.
The relative volatility in prices of commodities like steel, copper and aluminum remains a factor potentially jeopardizing the health of the projects business.
The Chinese and other low-cost exporters of HVAC products are aggressively using their significant economies of scale to build increasing pricing pressure across a range of products. The Japanese companies too seem to be bullishly price-competitive in India, leading to a decrease in margins across the industry.
The vast opportunities in the domestic water treatment market is attracting numerous multinationals armed with up-to-date and superior technologies, which are likely to dictate the form of competition.
The water business is an integral part of the projects business and therefore faces the same generic risks, such as cost and time overruns, delay in payment, commodity price variation, currency fluctuations, etc.
ENGINEERING PRODUCTS
AND SERVICES
The businesses in this segment are vulnerable to investment slowdown caused by increase in interest rates. A significant threat in the Mining and Construction Equipment sector lies in the continued delay in environment clearances.
UNITARY COOLING
PRODUCTS FOR COMFORT AND COMMERCIAL USE
With more and more brands entering the market, the AC industry is exhibiting signs of fragmentation. The Japanese brands in particular pose a threat with their pursuit for top line growth. Further, as organized retail grows in size, so will its bargaining power, thereby compressing the margins of the Industry. The forecasting of demand has emerged as a key challenge, especially in view of the increasingly erratic and fickle climate, which could adversely impact sales growth. Macro-economic circumstances such as high interest rates and wide USD-INR fluctuations, along with surging commodity prices, are also putting profitability under pressure. The market has already taken a round of price increases and it might not be possible to totally pass on the cost escalations, again to the consumers. Apart from the weather factor, the growth of the AC Industry will depend on the ability to be price competitive and offer a superior value proposition to the consumers.
The sales of higher star-rated ACs could also be impacted by increased prices in accordance with product upgradation norms laid down by BEE.
CONTINGENT
LIABILITIES NOT PROVIDED FOR (As on 31.03.2012)
(A) Guarantees on behalf of other companies :
Limits Rs.2263.929 Millions (31.03.2011: Rs.2202.465 Millions) against which amount outstanding was Rs.1462.144 Millions (31.03.2011: Rs.1043.587 Millions).
(B) Claims against the Company not acknowledged as debts :
In respect of various matters aggregating Rs.2689.856 Millions (31.03.2011: Rs.2569.190 Millions), net of tax Rs.1817.132 Millions (31.03.2011: Rs.1715.705 Millions) against which a provision has been made for contingencies Rs.112.500 Millions (31.03.2011: Rs.112.500 Millions). In respect of a contingent liability of Rs.508.636 Millions (31.03.2011: Rs.492.810 Millions), the Company has a right to recover the same from a third party
Rs. In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
Taxes, Cess and Duties (other than income tax |
1839.658 |
1726.062 |
|
Contractual matters in the course of business |
434.731 |
461.531 |
|
Real Estate Disputes and Demands |
351.976 |
351.976 |
|
Ex-employees matters Others |
24.863 |
24.863 |
|
Others |
28.628 |
4.758 |
|
|
2679.856 |
2569.190 |
(C) Contractual matters under arbitration: Amount indeterminate.
(D) Income tax demands:
In respect of matters decided in Company's favour by appellate authorities where the department is in further appeal Rs.135.036 Millions (31.03.2011: Rs.105.504 Millions).
In respect of matters decided against the Company and where Company has appealed amounted to Rs.51.751 Millions (31.03.2011: Rs.Nil) and in respect of others Rs.94.103 Millions (31.03.2011: Rs. Nil).
(E) Staff demands under adjudication: Amount indeterminate.
(F) Liquidated damages, except to the extent provided, for delay in delivery of goods: Amount indeterminate.
STATEMENT OF UNAUDITED
STAND-ALONE RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31" DECEMBER,
2012
Rs. In Millions
|
Sr. No. |
Particulars |
Quarter ended 31 12 2012 |
Quarter ended 30.09.2012 |
Nine months ended 31.12.2012 |
|
1 |
Income from
Operations |
|
|
|
|
|
a. Net Sales 1 Income from Operations (Net of excise duty) |
11473.900 |
11075.000 |
39293.100 |
|
|
b. Other operating income |
15.300 |
38.100 |
75.700 |
|
|
c Total income from operations (Net) (a + b) |
114S9.200 |
11113.100 |
39368.800 |
|
2, |
Expenses |
|
|
|
|
|
a. Cost of materials consumed |
6537.600 |
6038.700 |
19519.200 |
|
|
b. Purchase of stock-in-trade |
2695.100 |
2615.700 |
11028.300 |
|
|
c. Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(173.100) |
(270.300) |
5.800 |
|
|
d. Employee benefits expense |
1378.800 |
1460.300 |
4362.400 |
|
|
e. Depreciation and amortisation expense |
56.300 |
59.400 |
175.500 |
|
|
f Other expenses |
B87.300 |
960.300 |
3290.900 |
|
|
Total expenses |
11382.000 |
10864.100 |
38382.100 |
|
3. |
Profit from
operations before other income, finance costs and exceptional items (1 - 2) |
107.200 |
249.000 |
986.700 |
|
4 |
Other income |
247.400 |
175.600 |
809.100 |
|
5 |
Profit from ordinary
activities before finance costs and exceptional items (3 + 4) |
354.500 |
424.600 |
1795.800 |
|
6. |
Finance costs |
55.700 |
67.500 |
230.000 |
|
7 |
Profit from
ordinary activities after finance costs but before exceptional items (5 - 6) |
298.900 |
357.100 |
1565.800 |
|
8 |
a. Onerous contract (Note 3) |
- |
- |
- |
|
|
b. Exceptional items (Note 4) |
597.000 |
278.200 |
886.300 |
|
9 |
Profit / (loss)
from ordinary activities before tax [7 + 8(a+b)] |
895.900 |
635.300 |
2452.100 |
|
10. |
Tax expenses |
169.900 |
155.900 |
606.600 |
|
11 |
Net Profit} (loss)
from ordinary activities after tax [9 - 10) |
726.00 |
479.400 |
1845.500 |
|
12 |
Paid-up equity share capital (Face value ft/- each) |
330.700 |
330.700 |
330.700 |
|
13. |
Reserves excluding Revaluation Reserves (as per balance sheet of previous accounting year) |
|
|
|
|
14, |
Basic and Diluted Earnings per share (Rs,) ("not annualised) |
2.19 |
1.45 |
5 58 |
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
1 Public shareholding |
|
|
|
|
|
- Number of shares |
23,11,31,260 |
23,11.31,260 |
23.11,31.260 |
|
|
- Percentage of shareholding |
69.85 |
69 85 |
69.85 |
|
|
|
|
|
|
|
|
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) |
Nil |
Nil |
NU |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b. Non-encumbered |
|
|
|
|
|
- Number of shares |
9.97,53,460 |
9,97,53,480 |
9.97,53.480 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
100 00 |
100.00 |
|
|
- Percenlage of shares (as a % of the total share capital of the company) |
30.15 |
30 15 |
30.15 |
|
|
|
|
|
|
|
B |
Information on
Investors complaints |
for the Quarter ended 31.12.2012 |
|
|
|
|
Pending at the Beginning of the quarter |
NIL |
|
|
|
|
Received during The quarter |
NIL |
|
|
|
|
Disposed of during lira quarter |
NIL |
|
|
|
|
Remaining unresolved at the end of the Quarter |
NIL |
|
|
SEGMENT INFORMATION FOR
THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2012
Rs. In Millions
|
Particulars |
Quarter ended 31.12.2012 |
Quarter ended 30.09.2012 |
Nine months ended 31.12.2012 |
|
|
1. |
Segment Revenue |
|
|
|
|
|
a) Segment - A ( Electro - mechanical Projects and
Services ) |
7263.500 |
6791.000 |
21035.300 |
|
|
b) Segment - B ( Engineering Products and Services ) |
1066.600 |
1139.400 |
3271.500 |
|
|
c) 1 Segment - C ( Unitary Cooling Products (or Comfort and Commercial use) |
3145.600 |
3161.800 |
15005.500 |
|
|
Less ; Inter segment revenue |
1.800 |
7.200 |
19.200 |
|
|
Net Sales / Income
from Operations |
11473.900 |
11075.000 |
39293.100 |
|
2. |
Segment Results before Onerous Contract and Exceptional Items |
|
|
|
|
|
a ) Segment - A ( Electro - mechanical Projects and Services ) |
8.300 |
6.700 |
320.300 |
|
|
b ) Segment - B ( Engineering Products and Services ) |
263.700 |
211.800 |
569.300 |
|
|
c) Segment - C (Unitary Cooling Products for Comfort and Commercial use ) |
119.900 |
161.000 |
705.700 |
|
|
Total |
391.900 |
379.500 |
1695.300 |
|
|
Less: i. Interest |
55.700 |
67.500 |
230.000 |
|
|
ii. Other unallocable expenditure net of unallocable Income |
37.300 |
(45.100) |
(100.500) |
|
|
Profit before Onerous Contract, Exceptional Items and Tax |
298.900 |
357.100 |
1565.800 |
|
|
Onerous Contract (Reter Note 3 of Results) Exceptional Items - Net |
597.000 |
278.200 |
886.300 |
|
|
Profit from
Ordinary Activities before Tax |
895.900 |
635.300 |
2482.100 |
|
3. |
Capital Employed a | Segment - A (
Electro • mechanical Projects and Services ) |
9377.300 |
7977.300 |
9377.300 |
|
|
b ) Segment - B ( Engineering Products and Services ) |
1171.400 |
963.500 |
1171.400 |
|
|
c ) Segment - C ( Unitary Cooling Products for Comfort and Commercial use) |
1364.300 |
1357.400 |
1364.300 |
|
|
d) Others |
(5.500) |
(5.500) |
(5.800) |
|
|
e ) Unallocated |
3583.500 |
4467.500 |
3583.500 |
|
|
Total |
15491.000 |
14760.200 |
15491.000 |
Notes :
1. Segment 'C is seasonal In nature with sales being highest in the first quarter.
2. Segment Results after Onerous Contract and Exceptional Items
Rs. In Millions
|
Segment - A |
8.300 |
5.800 |
318.900 |
|
Segment - B |
263.700 |
211.800 |
669.300 |
|
Segment - C |
119.900 |
161.000 |
705.700 |
|
Unallocated Income/ (Expenses) - Net |
559.700 |
324.200 |
988.200 |
|
Interest |
(55.700) |
(67.500) |
(230.000) |
|
Total |
895.900 |
635.300 |
2452.100 |
NOTES .-
1) These results have been reviewed by the Board Audit Committee and approved by the Board of Directors at Is Meeting held on 11th February, 2013.
2) The Company has opted to publish consolidated Financial results, pursuant to option made available as per Clause at 41 of the Listing Agreements The stand-alone financial results are available on the Company s website
3) During the previous year there had been a significant upward revision in the estimated costs of a major project and the Company had accounted for the same in accordance with the requirements of Accounting Standard (AS 7). However, uncertainties exist due to the complex nature of the design and build' project. changes in design made By the client and delay in completion of the project The Company is closely monitoring the project and is presently of the view that adequate provision has been made after considering the further upward revision in costs and variations and claims Being negotiated.
4) Exceptional Items - Net
(a) For the quarter ended 31" December, 2012 (quarter ended 31'' December. 2011) comprises:
Profit on sale of properties / surrender of tenancy rights – Rs.17.500 Millions (Rs.171.900 Millions). Profit on sale of investments –Rs.579.500 Millions (Nil) and Charge of Voluntary Retirement Scheme / Early Separation Scheme - Nil (Rs.0.100 Million)
(b) For the quarter ended 301" September, 2012 comprises :
Profit on sale of properties / surrender of tenancy rights –Rs.2.800 Millions, Profit on sale of shares of a subsidiary company (Simto) – Rs.276.300 Millions and Charge of Voluntary Retirement Scheme (Early Separation Scheme – Rs.0.900 Million.
(c) For the nine months ended 31" December. 2012 (nine months ended 31" December, 2011) comprises
Profit on sale of properties ' surrender of tenancy rights – Rs.31.900 Millions (Rs.442.900 Millions). Profit on sale of shares of a subsidiary company (Simto) – Rs.276.300 Millions (Nil). Profit on sale of investment – Rs.579.500 Millions (Nil). Profit on transfer of Maternal Handling business - Nil (Rs.793.500 Millions) and Charge of Voluntary Retirement Scheme /Early Separation Scheme – Rs.1.400 Millions (Rs. 0.100 Millions)
(d) For the year ended 31 March. 2012 composes
Profit on sale of properties / surrender of tenancy rights – Rs.450.100 Millions. Profit on transfer of Materials Handling business - (Rs.793.500 Millions. Provision for diminution in value of investments written Back - Rs.14.100 Millions and Charge of Voluntary Retirement Scheme / Early Separation Scheme - Rs.0.900 Millions.
5) The Company has transferred its entire 34% shareholding in Voltas Material Handling Private Limited (VMH) 'or a consideration of Rs.580.000 Millions in favour of the other existing shareholder, holding balance 66% shareholding in VMH
6) The Statutory Auditors of the Company have conducted a "Limited Review" of the aforesaid financial results
7) Figures tor previous period / year have been regrouped, wherever necessary
FIXED ASSETS:
· Leasehold Land
· Freehold Land
· Building
· Plant and Machinery
· Furniture and Fittings
· Vehicles
· Intangible Assets: Manufacturing Rights and Technical Know-how
AS PER WEBSITE
PRESS RELEASES
VOLTAS FALLS;
ANALYSTS WARN ABOUT MARGINS
Thu Sep 27, 2012
11:23am IST
Reuters Market Eye - Shares in Voltas (VOLT.NS) fell as much as 3.5 percent after the company told analysts the air conditioner and cooling products maker was expecting more downside to its margins and revenue growth across its business segments.
Bank of America-Merrill Lynch cited Voltas management as expecting margins in its mechanical, electrical and public health (MEP) unit of around 5 percent in fiscal 2013, compared to expectations of 6 percent.
Voltas has also cut its margin guidance for its air conditioning and cooling unit to 7 percent from 8 percent due to rising costs and its focus on gaining market share, according to BoA-Merrill, which reiterated its 'underperform' rating.
Kotak Institutional Equities downgraded Voltas to 'reduce' from 'add', further adding "the valuations argument has lost its sheen."
Voltas shares were down 3.5 percent as of 11.23 a.m
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
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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.