MIRA
INFORM REPORT
|
Report Date : |
07.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
CHAMBAL FERTILISERS AND CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
Gadepan, District Kota -
325208, Rajasthan |
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Country : |
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|
Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
07.05.1985 |
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Com. Reg. No.: |
17-003293 |
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Capital
Investment / Paid-up Capital : |
Rs.4162.079 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24124RJ1985PLC003293 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHC01428A |
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PAN No.: [Permanent Account No.] |
AAACC9762A |
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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
: |
Manufacturer of Ammonia and Urea. |
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|
|
|
No. of Employees
: |
2434 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
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 71000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is one of the largest private sector fertilize producer in
India. It was promoted by Zuari Investments in 1985. It is a well established company having good track record. Financially
seems to be strong. Performance capacity is high. 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 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 |
Commercial Paper = A1+ |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of
financial obligation it carry lowest credit risk. |
|
Date |
December 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Factory 1 : |
Gadepan, District Kota-325208, Rajasthan, India |
|
Tel. No.: |
91-744-6462162 / 6462167 / 2782915 / 2934 |
|
Fax No.: |
91-744-6465218 / 7455-274130 |
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E-Mail : |
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Website : |
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Administrative Office : |
6th Floor, Devika Tower, 6, Nehru Place, New Delhi-110019, India |
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Tel. No.: |
91-11-26461162 – 63 |
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Fax No.: |
91-11-26465218/26480639 |
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E-Mail : |
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Corporate Office : |
Corporate One, 1st Floor, 5, Commercial Centre, Jasola, New
Delhi-110025, India |
|
Tel. No.: |
91-11-46581300/41697900 |
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Fax No.: |
91-11-40638679 |
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|
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Factory 2 : |
Sai Road, Bhatouli Khurd, P.O. Baddi, Solan-173205, Himachal
Pradesh, India |
|
Tel No: |
91-1795-245285-87 |
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Email: |
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|
Web Site: |
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Factory 3 : |
Solaris Building No. 1, D-Wing, 4th Floor, Solaris Complex,
Saki Vihar Road, Powai, Andheri (East), Mumbai-400072, Maharashtra, India |
|
Tel No: |
91-22-28573706/5204 |
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|
|
|
Regional Offices
: |
Located At:
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DIRECTORS
As on 31.03.2012
|
Name : |
Mr. S.K. Poddar |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. Shayam S. Bhartia |
|
Designation : |
Co-Chairman |
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|
Name : |
Mr. Anil Kapoor |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. R. N. Bansal |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Dipankar Basu |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K. N. Memani |
|
Designation : |
Director |
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|
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|
Name : |
Mr. C.S. Nopany |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Radha Singh |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Marco P. A. Wadia |
|
Designation : |
Director |
KEY EXECUTIVES
|
SENIOR EXECUTIVES |
|
|
Name : |
Mr. Abhay Baijal |
|
Designation : |
Vice President – Finance |
|
|
|
|
Name : |
Mr. A.K. Bhargava |
|
Designation : |
Vice President – Operations |
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|
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|
Name : |
Mr. D.L. Birla |
|
Designation : |
Executive President – BTM |
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|
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|
Name : |
Mr. V.K. Gupta |
|
Designation : |
Vice President – Marketing |
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|
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|
Name : |
Mr. Vinod Mehra |
|
Designation : |
President – Operations |
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|
|
|
Name : |
Mr. M.S. Rathore |
|
Designation : |
Vice President – Legal and Corporate Communication and Secretary |
|
|
|
|
Name : |
Mr. K. Satishchandra |
|
Designation : |
Executive President – India Steamship |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
22326756 |
5.36 |
|
|
207114726 |
49.76 |
|
|
229441482 |
55.13 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
229441482 |
55.13 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
8659186 |
2.08 |
|
|
1167238 |
0.28 |
|
|
28609775 |
6.87 |
|
|
40076938 |
9.63 |
|
|
78513137 |
18.86 |
|
|
|
|
|
|
25347360 |
6.09 |
|
|
|
|
|
|
57178727 |
13.74 |
|
|
24218188 |
5.82 |
|
|
1508958 |
0.36 |
|
|
1099906 |
0.26 |
|
|
409052 |
0.10 |
|
|
108253233 |
26.01 |
|
Total Public shareholding (B) |
186766370 |
44.87 |
|
Total (A)+(B) |
416207852 |
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) |
416207852 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Ammonia and Urea. |
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Products : |
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PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity* |
|
i) Fertiliser |
|
|
|
Ammonia |
MTPD |
2700 |
|
Urea |
MTPD |
4600 |
|
ii) Yarn Spindles |
Nos. |
83376 |
Note: * As certified by the management.
Actual Production:
|
Production |
|
Quantity (Tons) |
|
Ammonia |
|
1216649.000 |
|
Urea |
|
2100175.000 |
|
Synthetic Yarn |
|
|
|
Man Made Fibre Yarn |
|
10580.660 |
|
Fibre Yarn Waste |
|
526.208 |
|
Cotton Yarn |
|
|
|
Yarn |
|
9320.050 |
|
Waste |
|
2363.702 |
GENERAL INFORMATION
|
No. of Employees : |
2434 (Approximately) |
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Bankers : |
· Bank of Baroda · Punjab National Bank · State Bank of India · Allahabad Bank · State Bank of Indore · State Bank of Patiala · State Bank of Hyderabad · State Bank of Bikaner and Jaipur · Citibank · HDFC Bank · ICICI Bank · ING Vysya Bank · State Bank of Mysore ·
Axis Bank |
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Facilities : |
(Rs.
In Millions)
|
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|
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
|
|
|
|
Branch Auditors : |
|
|
Name : |
Singhi and Company Chartered Accountants |
|
|
|
|
Cost Auditors : |
|
|
Name : |
K.G. Goyal and Associates Chartered Accountants |
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|
|
|
Subsidiaries : |
·
CFCL Overseas Limited, Cayman Island ·
Chambal Infrastructure Ventures Limited, India ·
India Steamship Pte. Limited, Singapore ·
India Steamship Limited, India Subsidiaries and
Step-down Subsidiaries of CFCL Overseas Limited ·
CFCL Technologies Limited, Cayman Islands ·
CFCL Ventures Limited, Cayman Islands ·
ISGN Corporation, USA Subsidiaries and
step-down subsidiaries of ISGN Corporation, USA NITC GmbH (Germany) (formerly known as NovaSoft Information Technology
Corporation Gmbh,) ISGN Solutions Inc, USA ·
Richmond Investors, LLC, USA ·
Richmond Title Genepar, LLC, USA ·
Richmond Title Services, LP, USA ·
Flex Agents Signing Team, LLC, USA dissolved
w.e.f. February 14, 2012 ·
Richmond Title Services, LLC (Alabama), USA
dissolved w.e.f. October 28, 2011 ·
ISGN Fulfillment Services, Inc. (Pennsylvania,
USA) ·
ISGN Fulfillment Services, Inc (AZ, USA) ·
ISGN Fulfillment Services, South Inc (FL, USA)
dissolved w.e.f. November 02, 2011 ·
ISGN Fulfillment Services, of Alabama LLC (AL,
USA) dissolved w.e.f. November 10, 2011 ·
ISGN Fulfillment Services, of Maryland Inc. (MD,
USA) dissolved w.e.f. February 10, 2012 ·
ILS Services, LLC (DE, USA) dissolved w.e.f.
November 10, 2011 ·
ISGN Fulfillment Agency, LLC (DE, USA) ·
ISGN Fulfillment Agency, of Alabama, LLC (AL,
USA) Subsidiaries and
step-down subsidiaries of CFCL Ventures Limited ·
ISG Novasoft Technologies Limited, India ·
Inuva Info Management Private Limited, India Subsidiaries of
Chambal Infrastructure Ventures Limited ·
Chambal Energy (Chhattisgarh) Limited ·
Chambal Energy (Orissa) Limited Subsidiaries of
India Steamship Pte. Limited, Singapore ·
India Steamship International FZE, UAE |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
440000000 |
Equity Shares |
Rs.10/- each |
Rs. 4400.000 Millions |
|
210000000 |
Preference shares |
Rs. 10/- each |
Rs. 2100.000 Millions |
|
|
Total
|
|
Rs.6500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
416207852 |
Equity Shares |
Rs.10/- each |
Rs.4162.079
Millions |
|
|
|
|
|
a) Terms / rights
attached to equity shares-
The Company has only one class of shares having a par value of Rs.10 per share fully paid up. Each holder of equity shares is entitled to one vote per share and will rank pari passu with each other in all respect. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing annual general meeting.
b) Details of
shareholders holding more than 5% shares in the Company
|
Name |
No. of Shares |
% holding |
|
Zuari Industries Limited |
59,015,360 |
14.18 |
|
The Hindustan Times Limited |
50,061,715 |
12.03 |
|
SIL Investments Limited |
32,153,455 |
7.73 |
|
Life Insurance Corporation of India |
23,810,373 |
5.72 |
As per the of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
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 |
4162.079 |
4162.079 |
4162.079 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
13624.980 |
12071.198 |
9738.495 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
17787.059 |
16233.277 |
13900.574 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12850.720 |
13044.216 |
19960.750 |
|
|
2] Unsecured Loans |
20813.262 |
10382.970 |
6198.914 |
|
|
TOTAL BORROWING |
33663.982 |
23427.186 |
26159.664 |
|
|
DEFERRED TAX LIABILITIES |
3860.520 |
2011.914 |
2455.002 |
|
|
|
|
|
|
|
|
TOTAL |
55311.561 |
41672.377 |
42515.240 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
26357.761 |
26783.161 |
29320.088 |
|
|
Capital work-in-progress |
543.318 |
594.664 |
436.757 |
|
|
|
|
|
|
|
|
INVESTMENT |
4922.519 |
4005.601 |
4172.096 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Other Non-Current Assets |
703.893 |
705.385 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4583.095
|
3318.998 |
2433.116
|
|
|
Sundry Debtors |
20216.530
|
5851.477 |
5584.970
|
|
|
Cash & Bank Balances |
2735.345
|
2618.183 |
299.990
|
|
|
Other Current Assets |
527.067
|
1910.373 |
3425.112
|
|
|
Loans & Advances |
2614.991
|
2319.248 |
854.358
|
|
Total
Current Assets |
30677.028
|
16018.279 |
12597.546 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2684.993
|
1441.766 |
1426.696
|
|
|
Other Current Liabilities |
2897.946
|
2598.052 |
850.165
|
|
|
Provisions |
2310.019
|
2394.895 |
1734.386
|
|
Total
Current Liabilities |
7892.958
|
6434.713 |
4011.247 |
|
|
Net Current Assets |
22784.070
|
9583.566 |
8586.299
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
55311.561 |
41672.377 |
42515.240 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
64612.850 |
46541.055 |
35745.019 |
|
|
|
Other Income |
1552.020 |
887.484 |
666.110 |
|
|
|
TOTAL (A) |
66164.870 |
47428.539 |
36411.129 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
14584.852 |
|
|
|
|
|
Purchase of traded goods |
25030.333 |
14547.721 |
|
|
|
|
(Increase) in inventories of finished goods, work-in-progress and traded goods |
(1295.223) |
(1136.254) |
29336.420 |
|
|
|
Employee benefits expense |
1339.373 |
1132.076 |
|
|
|
|
Other expenses |
16542.507 |
12498.622 |
|
|
|
|
Freight to charter-in ship |
543.342 |
396.100 |
|
|
|
|
Exceptional item |
0.000 |
(43.687) |
|
|
|
|
TOTAL (B) |
56745.184 |
39240.862 |
29336.420 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9419.686 |
8187.677 |
7074.709 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1202.553 |
1100.219 |
910.414 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
8217.133 |
7087.458 |
6164.295 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2620.799 |
2679.482 |
2576.177 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5596.334 |
4407.976 |
3588.118 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3123.465 |
1156.191 |
1097.606 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2472.869 |
3251.785 |
2490.512 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
9605.408 |
7596.455 |
6284.332 |
|
|
|
|
|
|
|
|
|
|
TRANSFERRED FROM
DEBENTURE REDEMPTION RESERVE |
0.000 |
31.250 |
31.250 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
500.000 |
350.000 |
250.000 |
|
|
|
Transfer to Tonnage Tax Reserve |
0.000 |
5.000 |
37.500 |
|
|
|
Proposed Dividend on Equity Shares |
790.795 |
790.795 |
790.795 |
|
|
|
Tax on Dividend |
128.287 |
128.287 |
131.344 |
|
|
BALANCE CARRIED
TO THE B/S |
10959.195 |
9605.408 |
7596.455 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of exports |
844.985 |
1194.166 |
2541.384 |
|
|
|
Dispatch money (On cash basis) |
8.131 |
7.691 |
2.044 |
|
|
|
Dividend income |
1003.323 |
109.421 |
0.000 |
|
|
|
Interest (On cash basis) |
1.840 |
12.190 |
3.604 |
|
|
|
Rebate on purchases related to earlier years |
40.025 |
46.557 |
21.519 |
|
|
|
Late delivery charges recovery |
15.590 |
0.000 |
0.000 |
|
|
|
Reimbursement of salary related expenses |
4.472 |
3.858 |
0.000 |
|
|
|
Freight & Charter hire from ships |
1725.904 |
1910.244 |
0.000 |
|
|
|
Management fees |
0.368 |
0.779 |
0.000 |
|
|
|
Others |
3.141 |
1.771 |
0.000 |
|
|
TOTAL EARNINGS |
3647.779 |
3286.677 |
2568.551 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
11.872 |
9.255 |
0.000 |
|
|
|
Traded Products |
20309.516 |
11248.206 |
4157.789 |
|
|
|
Stores & Spares |
43.708 |
81.520 |
22.301 |
|
|
|
Capital Goods |
200.850 |
319.137 |
121.423 |
|
|
TOTAL IMPORTS |
20565.946 |
11658.118 |
4301.513 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.94 |
7.81 |
5.98 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
13644.260 |
23407.150 |
|
Total Expenditure |
|
11769.230 |
21456.050 |
|
PBIDT (Excl OI) |
|
1875.030 |
1951.100 |
|
Other Income |
|
174.880 |
284.530 |
|
Operating Profit |
|
2049.910 |
2235.630 |
|
Exceptional Items |
|
353.620 |
257.080 |
|
Interest |
|
0.000 |
119.570 |
|
PBDT |
|
1696.290 |
2098.120 |
|
Depreciation |
|
559.630 |
547.330 |
|
Profit Before Tax |
|
1136.660 |
1550.790 |
|
Tax |
|
366.000 |
455.470 |
|
Profit After Tax |
|
770.650 |
1095.330 |
|
Net Profit |
|
770.650 |
1095.330 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.74
|
6.86 |
6.84
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.66
|
9.47 |
10.04
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.81
|
10.30 |
8.57
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31
|
0.27 |
0.26
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.34
|
1.84 |
2.17
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.89
|
2.49 |
3.14
|
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 |
No |
|
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 |
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 |
OPERATIONS:
The financial year was a year of opportunities coupled with challenges. The performance of the Fertiliser Division of the Company was commendable both in terms of profitability and revenue. However, the Shipping and Textile Divisions have suffered due to overall dismal market scenario.
The Company has achieved highest ever production and sales of Urea. Similar uptrend was observed in volumes and profitability from the trading activity. The Company has expanded its market reach by setting up its marketing office at Aurangabad which will cater to Maharashtra market.
The Shipping Business has seen one of the worst years with bunker rates increasing sharply and asset and freight rates falling substantially. The time charter activity has also remained sluggish due to downturn in the market. This has severely impacted the performance of the Shipping business. The Company has six vessels (5 double hull and one single hull aframax tankers). The Company plans to dispose off the single hull vessel which is more than 23 year old.
During the year, the Shipping Division of the Company has opted out of Tonnage Tax Scheme under the Income Tax Act, 1961 and will be assessed under the normal tax regime w.e.f. April 01, 2011. Consequently, the Company has ascertained deferred tax liability on the difference between the written down value of the fixed assets pertaining to the Shipping Division as per books of accounts and the Income Tax Act, 1961 as on April 1, 2011 amounting to Rs.1842.100 Millions which has been accounted for during the year. This non cash accounting charge has impacted the net profit of the Company during the Financial Year 2011-12.
The Textile Division has faced high volatility in prices of raw material and yarn, movement of both the prices not being in tandem. The export markets have also remained sluggish during the year. All these factors have affected the performance of the Textile Division adversely.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
(a) Raw Material
Natural Gas is the main input for production of Urea. The Natural Gas supplies in India are through two sources – a) domestically produced Natural Gas and b) Re-gasified Liquified Natural Gas (RLNG). The international oil prices have a direct bearing on the gas prices due to a close correlation between the oil and the gas prices. There were high hopes of abundant Natural Gas supply upon commencement of supplies from KG D-6 gas fields of Reliance Industries Limited (KG– D6). However, the euphoria was cut short by dwindling Natural gas production from KG-D6. This has put more pressure on the supply side and in turn on prices of Natural Gas in the spot market in India. The increasing demand-supply gap is being met through spot RLNG which is costlier than Gas being supplied from other sources. This cost has further escalated due to weakening of Rupee against the US Dollar.
The Company has a basket of sources of natural gas and its urea plants at Gadepan are using gas in the form of feed and fuel. The Company has long term Gas Supply Agreements for its requirement. RLNG constitutes a major quantum of gas supplies and the prices under the contracts have been rising due to increase in the international oil prices. The Company resorts to buying gas on a spot basis to sustain the Urea output in the event of reduction in supplies from long term sources.
(b) Demand-Supply
Scenario
Urea production has been almost stagnant in India for the last 13 years whereas there has been steady increase in demand of Urea, resulting into significant gap between demand and supply. No new plant came up since 1999 except small capacity build up through de-bottlenecking projects. The country is therefore far from self-reliant both in nitrogenous and phosphatic fertilisers. India has imported around 8.0 million MT of Urea during the year 2011-12. Large imports of urea by India significantly impact the international urea prices. Urea import prices were volatile during the year and varied between USD 350 and USD 550 per MT. A positive Government policy intervention is urgently needed to encourage the new investments in Urea sector and thereby reduce the country’s dependence on costly imports.
c) Developments in
Government Policies
New Pricing Scheme (NPS) Stage III which was valid upto March 31, 2010, has been further extended provisionally.
The Government of India is currently working on the New Investment Policy (NIP) to create a conducive investment climate for Urea Industry. The company is actively tracking these developments and poised to make investments as and when a favourable policy is announced by the Government of India. The New Investment Policy is expected in the current fiscal.
The Government of India proposes to give fertilizer subsidy directly to the farmers as against routing it through fertilizer producers. The task force constituted under the chairmanship of Mr. Nandan Nilekani to implement the direct subsidy to farmers has suggested a three phase roadmap for this purpose. Under Phase - I, the data regarding supply of fertilizers upto to the retailer point has to be captured in the system. Phase – II envisages payment of fertilizer subsidy to the retailers and the subsidy is proposed to be paid directly to the farmers under phase – III. The phase – I is under implementation. The roll out of Phase – II was planned from 1st June 2012, but final decision is still pending.
(e) Outlook
Urea is not likely to face any challenge in terms of sales volumes due to huge demand - supply gap. The positive
monsoon predictions are likely to support the growth plans of the Company in traded products and proposed SSP production. Considering the huge demand - supply gap and ever increasing subsidy outgo on imported urea, it is expected that Government of India will come out with a Urea Investment policy which will attract desired investment in this sector.
INDIA
STEAMSHIP-SHIPPING DIVISION
(a) Industry
Structure and Developments
The dry bulk, containers and tankers are major segments of the Shipping Industry. Shipping is an international business and both positive and negative developments in the international market will have direct bearing on this business. Global Shipping Industry went through turmoil in the year 2011-12. Three sets of events namely European financial crisis, the social upheaval in the Middle East and natural disasters– a tsunami and earthquake in Japan and the ‘flood of the century’ in Australia, had adverse impact on Shipping Industry. While the effect of these disasters varied among segments, the overall impact was negative for world growth and hence in turn for tonnage demand.
A marked slowdown in tonnage demand added to the tanker market’s supply woes during the year 2011-12 and brought average freight rates down to the lowest level since 1994. Fleet capacity, on the other hand, continued its steady increase with a 6.2 percent overall surplus. The year will also be remembered for a steep decline in ship asset values. New building prices fell by around 10 percent and second hand values also dropped across-the-board with 5-year-old vessels down by nearly 20 percent for tankers.
(b) Outlook
The outlook for the shipping industry remains bleak for the rest of this year, with no major upturn expected until April 2013 at the earliest. The current situation where ship owners facing high bunker fuel costs, lower demand for shipping, falling freight rates and falling asset values of vessels, does not bode well for year 2012-13, but this trend seems to be more cyclical than structural.
BIRLA TEXTILE MILLS -
SPINNING DIVISION
(a) Industry
Structure and Developments
The Indian Textile Industry, with the size of US$ 75 Billion has three tiered structure – sophisticated modern mill segment, small scale unorganized players and a widely dispersed handloom and power-loom segment. India accounts for 22% of the world’s installed capacity of spindles, second largest spindlage after China. India is also the second largest producer of cotton and cellulosic fibres and fourth largest producer of Synthetic Fibres and Yarns. This sector is the second largest job provider (direct employment to over 35 Million people) after agriculture. It also contributes about 14% to India’s industrial production, 4% to the GDP and 10% to the export earnings.
(b) Outlook
Indian Textile Industry which showed signs of recovery in 2010, exhibited weakness in 2011. Going forward, the industry is concerned about shortage of labour, volatile input prices, fluctuating Indian currency, uncertainty of yarn prices and competition restraining pricing power. However, future of Indian Textile Industry seems bright on the back of robust domestic demand and steadily growing exports
CONTINGENT
LIABILITIES (NOT PROVIDED FOR) IN RESPECT OF :
Rs. In Millions
|
Sl. No. |
Particulars |
31.03.2012 |
31.03.2011 |
|
i) |
Outstanding amount against corporate guarantee given to Bank on account of loans given by such Bank to stepdown subsidiary Company |
1119.360 |
0.000 |
|
ii) |
Bills discounted with bank and remaining outstanding as on date |
52.965 |
130.693 |
|
iii) |
Demand raised by Customs, Sales Tax and Income Tax (IT) authorities being disputed by the Company. |
59.598 |
628.591 |
|
iv) |
Other claims against the Company not acknowledged as debts. |
0.424 |
0.424 |
|
v) |
Claim against Nihat Shipping Company Limited in legal suits / notices, in which the Company has been made a party, is being contested, since the Company acted as Agents / Technical and Operational Managers. |
22.204 |
22.204 |
|
vi) |
Penalty levied by FERA Board under appeal before the Calcutta High Court. |
0.130 |
0.130 |
|
vii) |
Various labour cases |
Amount not Ascertainable |
Amount not Ascertainable |
* Brief description
of liabilities as per (iii) above :
Rs. In Millions
|
Sl. No. |
Particulars |
31.03.2012 |
31.03.2011 |
|
1. |
Income Tax : |
|
|
|
|
Demand raised by IT authorities on account of various disallowances for AY 2002-03 including penalties |
-- |
7.026 |
|
|
Demand raised by IT authorities on account of various disallowances for AY 2003-04 including penalties. |
0.128 |
280.810 |
|
|
Demand raised by IT authorities on account of various disallowances for AY 2004-05 including penalties. |
0.587 |
232.091 |
|
|
Demand raised by IT authorities on account of various disallowances for AY 2006-07 including penalties |
-- |
2.893 |
|
|
Demand raised by IT authorities on account of various disallowances for AY 2008-09 including penalties. |
0.955 |
48.148 |
|
|
Demand raised by IT authorities on account of various disallowances for AY 2009-10. |
44.699 |
-- |
|
|
Demand raised by IT authorities on account of short deduction of TDS and interest thereon for AY 2008-09 to 2011-12 |
3.830 |
50.893 |
|
2. |
Sales Tax : |
|
|
|
|
Disallowance of VAT credit on raw materials used in the manufacturing of finished goods and lying in stock on April 1, 2006. |
2.218 |
2.218 |
|
|
Demand raised by The Asstt. Commissioner of Commercial Taxes, Patliputra Circle, Patna for FY 2006-07 and 2007-08 and pending matter before the Commercial Taxes Tribunal, Bihar, Patna |
0.809 |
-- |
|
|
Miscellaneous Rajasthan Sales Tax and Central Sales Tax demand. |
3.847 |
3.847 |
|
3. |
Service Tax /
Excise Duty : |
|
|
|
|
Service Tax demand received on services from foreign parties in respect of service tax not paid on Tax deducted at source (TDS) portion. |
0.457 |
0.459 |
|
|
Show cause notice dated 16.03.2011 related to non payment of service tax on ‘Renting Income’ received during FY 2009-10. |
0.199 |
0.206 |
|
|
Show cause notice dated 19.01.12 related to non payment of excise duty of Rs. 1.200 Millions on sale of scrap during FY 2009-10 |
1.200 |
-- |
|
4. |
Land Tax |
|
|
|
|
Demand raised by Sub-registrar (Digod) towards levy of land tax on land at Gadepan, Kota for F.Y 2011-12 |
0.669 |
-- |
|
|
Total |
59.598 |
628.591 |
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2012
Rs. In Millions
|
Sr. |
Particulars |
Quarter Ended |
Half Year Ended |
|
|
No. |
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
1. |
Income from
Operations |
|
|
|
|
|
(a) Net Sales/
Income from Operations |
23396.254 |
13635.563 |
37031.817 |
|
|
(b) Other Operating Income |
10.898 |
8.700 |
19.598 |
|
|
Total income from
Operations (Net) |
23407.152 |
13644.263 |
37051.415 |
|
2. |
Expenses |
|
|
|
|
|
(a) Cost of Materials Consumed |
4632.218 |
3695.457 |
8327.675 |
|
|
(b) Power and Fuel |
2801.017 |
2197.624 |
4998.641 |
|
|
(c) Purchase of Stock-in-Trade |
14697.840 |
6881.117 |
21578.957 |
|
|
(d) Changes in
Inventories of Finished Goods, |
(3792.490) |
(3448.009) |
(7240.499) |
|
|
(e) Employee Benefits Expense |
357.919 |
333.574 |
691.493 |
|
|
(f) Depreciation and Amortisation Expense |
547.331 |
559.629 |
1106.960 |
|
|
(g) Other Expenses |
2759.544 |
2114.207 |
4873.751 |
|
|
Total Expenses |
22003.379 |
12333.599 |
34336.978 |
|
3. |
Profit from Operations
before Other Income, Finance Costs and Exceptional Items (1-2) |
1403.773 |
1310.664 |
2714.437 |
|
4. |
Other Income |
284.531 |
174.875 |
459.406 |
|
5. |
Profit from
Ordinary Activities before Finance Costs and Exceptional Items (3 + 4) |
1688.304 |
1485.539 |
3173.843 |
|
6. |
Finance Costs |
257.083 |
348.882 |
605.965 |
|
7. |
Profit from
Ordinary Activities after Finance Costs but before Exceptional Items (5 - 6) |
1431.221 |
1136.657 |
2567.878 |
|
8. |
Exceptional Items (Refer note no. 4) |
119.573 |
- |
119.573 |
|
9. |
Profit from
Ordinary Activities before Tax (7+ 8) |
1550.794 |
1136.657 |
2687.451 |
|
10. |
Tax Expense |
455.468 |
366.003 |
821.471 |
|
|
- Current Tax |
263.603 |
408.791 |
672.394 |
|
|
- Tax related to Earlier Years (Net) |
- |
(6.397) |
(6.397) |
|
|
- Exceptional Deferred Tax |
- |
- |
- |
|
|
- Deferred Tax Charge/ (Credit) |
191.865 |
(36.391) |
155.474 |
|
|
- Tonnage Tax |
- |
- |
- |
|
11 |
Net Profit from Ordinary
Activities after Tax (9-10) |
1095.326 |
770.654 |
1865.980 |
|
12. |
Paid-up Equity Share Capital (Face Value of Rs 10/- per share) |
4162.079 |
4162.079 |
4162.079 |
|
13. |
Reserves excluding Revaluation Reserve as per Balance Sheet of Previous Accounting Year |
|
|
|
|
14. |
Earnings Per Share (of Rs 10/- each) Basic (Rs.) Diluted (Rs.) |
2.63 |
1.85 |
4.48 |
|
|
|
|
|
|
|
A. |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of Shares |
186766370 |
186766370 |
186766370 |
|
|
- Percentage of shareholding |
44.88% |
44.88% |
44.88% |
|
2. |
Promoters and
Promoter Group Shareholding |
|
|
|
|
a) |
Pledged/ Encumbered |
|
|
|
|
|
- Number of Shares |
33565000 |
31727500 |
33565000 |
|
|
- Percentage of Shares (as a % of the total Shareholding of Promoter and Promoter Group) |
14.63% |
13.83% |
14.63% |
|
|
- Percentage of Shares (as a % of the total Share Capital of the Company) |
8.06% |
7.62% |
8.06% |
|
b) |
Non-Encumbered |
|
|
|
|
|
- Number of Shares |
195876482 |
197713982 |
195876482 |
|
|
- Percentage of Shares (as a % of the total Shareholding of Promoter and Promoter Group) |
85.37% |
86.17% |
85.37% |
|
|
- Percentage of Shares (as a % of the total Share Capital of the Company) |
47.06% |
47.50% |
47.06% |
|
|
|
|
|
|
|
B |
INVESTOR COMPLAINTS FOR THE QUARTER ENDED 30.09.2012 |
|
||
|
|
Pending at the beginning of the quarter |
NIL |
|
|
|
|
Received during the quarter |
36 |
|
|
|
|
Disposed off during the quarter |
36 |
|
|
|
|
Remaining unresolved at the end of the quarter |
NIL |
|
|
SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED
Rs. In Millions
|
Sr. |
Particulars |
Quarter Ended |
Half Year Ended |
|
|
No. |
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
1. |
Segment Revenue |
|
|
|
|
|
a) Own Manufactured Fertiliser |
9349.002 |
8779.449 |
18128.451 |
|
|
b) Traded Goods |
12277.161 |
3034.247 |
15311.408 |
|
|
c) Shipping |
735.081 |
884.146 |
1619.227 |
|
|
d) Textile |
1045.908 |
946.421 |
1992.329 |
|
|
e) Unallocated |
-- |
-- |
-- |
|
|
Total(a to e) |
23407.152 |
13644.263 |
37051.415 |
|
|
Less: Inter segment revenue |
-- |
-- |
-- |
|
|
Net Sales / Income
from Operations |
23407.152 |
13644.263 |
37051.415 |
|
|
|
|
|
|
|
2. |
Segment Results |
|
|
|
|
|
Profit / (Loss) before Interest, unallocable expenses (net) and Tax from each Segment |
|
|
|
|
|
a) Own Manufactured Fertiliser |
1088.620 |
1239.539 |
2328.159 |
|
|
b) Traded Goods |
838.409 |
420.597 |
1259.006 |
|
|
c) Shipping |
70.340 |
(24.820) |
45.520 |
|
|
d) Textile |
52.731 |
12.313 |
65.044 |
|
|
Total (a to d) |
2050.100 |
1647.629 |
3697.729 |
|
|
Less : (i) Interest |
205.497 |
331.977 |
537.474 |
|
|
(ii) Other Unallocable Expenditure Net off Unallocable Income |
293.809 |
178.995 |
472.804 |
|
|
Total Profit before
tax |
1550.794 |
1136.657 |
2687.451 |
|
|
|
|
|
|
|
|
Capital Employed (Segment
Assets-Segment Liabilities) |
|
|
|
|
|
a) Own Manufactured Fertiliser |
19712.403 |
23407.454 |
19712.403 |
|
|
b) Traded Goods |
17158.325 |
6153.177 |
17158.325 |
|
|
c) Shipping |
15113.682 |
16213.132 |
15113.682 |
|
|
d) Textile |
1653.105 |
1993.482 |
1653.105 |
|
|
e) Unallocated Capital Employed |
33984.476) |
(29209.532) |
(33984.476) |
|
|
Total (a to e) |
19653.039 |
18557.713 |
19653.039 |
STANDALONE STATEMENT OF ASSETS AND
LIABILITIES
Rs. In Millions
|
Sr. No. |
Particulars |
30.09.2012 (Unaudited) |
|
A |
EQUITY AND LIABILITIES |
|
|
1 |
Shareholders' funds |
|
|
|
(a) Share
Capital |
4162.079 |
|
|
(b) Reserves
and Surplus |
15490.960 |
|
|
Subtotal - Shareholders' funds |
19653.039 |
|
2 |
Non - current liabilities |
|
|
|
(a)
Long-term borrowings |
11132.922 |
|
|
(b) Deferred
tax liabilities (net) |
4015.994 |
|
|
(c) Other
long-term liabilities |
34.124 |
|
|
(d) Long-term
provisions |
449.718 |
|
|
Subtotal -Non - current liabilities |
15632.758 |
|
3 |
Current liabilities |
|
|
|
(a)
Short-term borrowings |
22831.739 |
|
|
(b) Trade
payables |
6659.339 |
|
|
(c) Other
current liabilities |
5190.431 |
|
|
(d) Short-term
provisions |
992.920 |
|
|
Subtotal
-Current liabilities |
35674.429 |
|
|
TOTAL-EQUITY AND LIABILITIES |
70960.226 |
|
B |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed
assets |
26771.986 |
|
|
(b)
Non-current investments |
5039.341 |
|
|
(c)
Long-term loans and advances |
594.678 |
|
|
(d) Other
non-current assets |
158.697 |
|
|
Sub-total - Non-current assets |
32564.702 |
|
2 |
Current assets |
|
|
|
(a) Current
Investments |
1850.000 |
|
|
(b)
Inventories |
12495.470 |
|
|
(c) Trade receivables |
20763.416 |
|
|
(d) Cash and
cash equivalents |
372.659 |
|
|
(e)
Short-term loans and advances |
2172.124 |
|
|
(f) Other
current assets |
741.855 |
|
|
Sub-total - Current assets |
38395.524 |
|
|
TOTAL - ASSETS |
70960.226 |
Notes:
1. The results for the period ended September 30 2012 have been prepared on the basis of notified concession prices for urea under the New Pricing Scheme (NPS) further adjusted for input price escalation / de-escalation as estimated on the basis of prescribed norms. The concession price of urea notified by the Government of India under the NPS-Stage III effective for the period from October 1, 2006 to March 31, 2010 has been extended on provisional basis till further orders.
2. During the period, the subsidy on Phosphatic and Potassic fertilizers has been accounted for as per concession price notified by the Government of India for the period from April 1, 2012.
3. During the period, the Company has made further investment of Rs 116.823 Millions in its wholly owned subsidiary - CFCL Overseas Limited, Cayman Islands.
4. In pursuance of clarification dated August 9, 2012 issued by Ministry of Corporate Affairs, Government of India, the Company has changed the accounting policy w.e.f from April 1, 2011 in respect of borrowing costs as prescribed under AS -16 4(e) and accounted for the foreign exchange differences arising from foreign currency borrowings purely as per AS-11 - "The Effects of Changes in Foreign Exchange Rates". Consequent to the above, Rs 119.573 Millions earlier recognized as borrowing cost in Financial Year 2011-12 has been reversed and shown as exceptional income during the period ended September 30, 2012 and Rs. 41.825 Millions pertaining to 1st quarter of the Financial Year 2012-13 has been reversed. Further, the aforesaid amount of Rs. 161.398 Millions has been capitalized in fixed assets and depreciation of Rs. 12.128 Millions has been charged on the same.
5. During the period, Single Super Phosphate plant of the Company at Gadepan has commenced production.
6. Other Income of the Company includes profit on sale of ship amounting to Rs. 109.502 Millions.
7. Previous period figures have been regrouped and/ or re-arranged wherever necessary to make their classification comparable with the current period.
8.
The auditors have conducted limited
review of the financial results for the period ended September 30, 2012. The
results were reviewed by the Audit Committee. The Board has taken on record the
financial results at its meeting held on November 06, 2012.
FIXED ASSETS:
- Land – Freehold
- Land – Leasehold
- Building
- Leasehold Improvements
- Railway Siding
- Plant and Machinery
- Equipment
- Furniture and Fitting
- Vehicle
- Vehicle (On Finance Lease)
- Ships
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.54.85 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
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 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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.