MIRA
INFORM REPORT
|
Report Date : |
08.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
DCM SHRIRAM INDUSTRIES LIMITED |
|
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Registered
Office : |
Kanchenjunga Building, 6th
Floor, 18, Barakhamba Road, New Delhi – 110001 |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
21.02.1989 |
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Com. Reg. No.: |
55-035140 |
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Capital
Investment / Paid-up Capital : |
Rs. 173.984 Millions |
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CIN No.: [Company Identification
No.] |
L74899DL1989PLC035140 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELD06462B |
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PAN No.: [Permanent Account No.] |
AAACD0204C AAACD0229M |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing of Chemicals,
Sugar and Textile Products. |
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No. of Employees
: |
2466 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. The
company is continuously incurring loss from its last 2 years operations.
However, Networth appears to be satisfactory. Trade relations are reported as
fair. Business is active. Payments are reported to be usually correct and as
per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BBB- Long Term Bank Facilities |
|
Rating Explanation |
Moderate degree of safety. It carry moderate credit risk |
|
Date |
April 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A3 : Short Term Bank Facilities |
|
Rating Explanation |
Moderate degree of Safety. It carry higher credit risk |
|
Date |
April 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/ Divisional Office
1 : |
Kanchenjunga Building, 6th
Floor, 18, Barakhamba Road, New Delhi – 110001, India |
|
Tel. No.: |
91-11-23321413 (10 Lines)/
23759300/ 23759400 |
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Fax No.: |
91-11-23310765/ 23315424 |
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E-Mail : |
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Website : |
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Divisional Office 2 : |
1-89, Himalaya House, 23,
Kasturba Gandhi Marg, New Delhi – 110001, India |
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Tel. No.: |
91-11-23318609 |
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Fax No.: |
91-11-23318605 |
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E-Mail : |
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Divisional Office 3 : |
Akashdeep Building, 5th
Floor, 26A, Barakhamba Road, New Delhi – 110001, India |
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Tel. No.: |
91-11-23312267/ 2331413 |
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Fax No.: |
91-11-23313494/ 22351916/
23315424 |
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E-Mail : |
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Divisional Office 4 : |
204-205, Ashoka Estate Building,
Barakhamba Road, New Delhi – 110001, India |
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Tel. No.: |
91-11-23739311 |
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Fax No.: |
91-11-23739316 |
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Divisional Office 5: |
22-B, Himalaya House, 2nd Floor, 23 Kasturba Gandhi Marg New Delhi – 110 001, India |
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Tel. No.: |
91-11-23318609/
23759200 |
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Fax No.: |
91-11-23318605 |
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Email : |
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Corporate Office : |
Akashdeep Building, 4th
Floor, 26A, Barakhamba Road, New Delhi – 110001, India |
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Tel. No.: |
91-11-23739311/ 23759250/
23312267 |
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Fax No.: |
91-11-23739316/ 23313494/
22351916 |
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E-Mail : |
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Regional Office 1 : |
208, Marine Charmers, Sir
Vithaldas Thackersey Marg, Opposite SNDT College, Mumbai – 400020, Maharashtra,
India |
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Tel. No.: |
91-22-22011440/ 22051455 /
22059207/ 23318609/ 23759200 |
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Fax No.: |
91-22-22031570/ 23318605 |
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Email : |
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Regional Office 2 : |
Sir Vithaldas Chambers, 6th
Floor, 16 Bombay Samachar Marg, Fort Mumbai – 400023, Maharashtra,
India |
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E-Mail : |
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Regional Office 3 : |
26-A, Wat Gange Street, Kolkata –
700023, West Bengal, India |
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Regional Office 4 : |
23/1A Giri Babu Lane, Kolkata –
700012, West Bengal, India |
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Tel. No.: |
91-33-22373411 |
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Factory 1 : |
HRM Premises, Dasna, |
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Factory 2 : |
Daurala, Meerut District – 250221, Uttar Pradesh, India |
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Tel. No.: |
91-121-2588096
91-1237-230096/
230100/ 230086/ 230544
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Fax No.: |
91-123-2788131
91-1237-230131/
230149/ 230511
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Email : |
dsw@dcmsr.com
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Website: |
http://www.dauralaorganics.com
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Factory 3 : |
Shriram Nagar, Kota – 324004, Rajasthan, India |
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Tel. No.: |
91-744-2424401/
02/ 04
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Fax No.: |
91-744-2424403/
2480003/ 2481519
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E-Mail : |
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Factory 4 : |
Matsya Industrial Area, District
Alwar, |
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Tel. No.: |
91-144-2281053/
2811053
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Fax No.: |
91-144-2281253
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E-Mail : |
srrayons@jp1.dot.net.in
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Factory 5 : |
Daurala, Meerut District, Uttar Pradesh, India |
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Tel. No.: |
91-121-2288533
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Factory 6 : |
Daurala Sugar Works, Daurala,
Meerut District – 250221, Uttar Pradesh, India
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Tel. No.: |
91-1237-288096/ 99 |
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Fax No.: |
91-1237-288131 |
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E-Mail : |
dsw@dcmsr.com
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Factory 7: |
104, Pollivakkam Village, Thiruvallur – Sriperumpudur Road,
Thiruvallur District, Tamilnadu, India |
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Tel No.: |
91-44-22350500 |
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Fax No.: |
91-44-22353605 |
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Email : |
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Branch Office : |
Daurala
Organics 22-B, Himalya House, 2nd Floor, 23 Kasturba Gandhi Marg,
New Delhi, India
|
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Tilak Dhar |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
B. |
|
Date of Appointment : |
08.09.1980 |
|
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Name : |
Mr. Alok B. Shriram |
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Designation : |
Deputy Managing Director |
|
Qualification : |
B. Com. [Hons.] |
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Date of Appointment : |
01.01.1990 |
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|
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|
Name : |
Mr. Madhav B. Shriram |
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Designation : |
Whole Time Director |
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Qualification : |
B. Com., MBA |
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Date of Appointment : |
22.05.1990 |
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|
Name : |
Mr. Anil Gujral |
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Designation : |
Director and Chief Executive Officer
(Chemicals and Alcohol) |
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|
Name : |
Mr. P. R. Khanna |
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Designation : |
Director |
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Name : |
Dr. V. L. Dutt |
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Designation : |
Director |
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Name : |
Mr. S.B. Mathur |
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Designation : |
Director |
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Name : |
Mr. Ravinder Narain |
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Designation : |
Director |
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Name : |
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Designation : |
IFCI Nominee |
KEY EXECUTIVES
|
Name : |
Mr. B. P. Khandelwal |
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Designation : |
Company Secretary / Senior Executive Director) |
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Name : |
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Designation : |
President |
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Name : |
Mr. G. Kumar |
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Designation : |
Advisor to CMD |
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Name : |
K. N. Rao |
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Designation : |
Chief Operating Officer (Rayons) |
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Name : |
P. V. Bakre |
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Designation : |
Sr. Vice President |
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|
Name : |
N. K. Jain |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2012
|
Particular |
Number of shares |
Percentage of holding |
|
A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
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|
297387 |
1.71 |
|
|
7294587 |
41.93 |
|
|
7591974 |
43.64 |
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|
Total shareholding
of Promoter and Promoter Group (A) |
7591974 |
43.64 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
5267 |
0.03 |
|
|
3856 |
0.02 |
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|
1331259 |
7.65 |
|
|
1340382 |
7.70 |
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|
|
|
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|
5534017 |
31.81 |
|
|
|
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|
|
2600710 |
14.95 |
|
|
193229 |
1.11 |
|
|
138125 |
0.79 |
|
|
43113 |
0.25 |
|
|
91054 |
0.52 |
|
|
2062 |
0.01 |
|
|
1896 |
0.01 |
|
|
8466081 |
48.66 |
|
Total Public
shareholding (B) |
9806463 |
56.36 |
|
Total (A)+(B) |
17398437 |
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) |
17398437 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Chemicals, Sugar
and Textile Products. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity (a) |
|
Sugar Cane |
Cane crushing Tonnes per day |
12500 |
|
Alcohol |
K.L. per year |
45000 |
|
Organic/Fine chemicals |
Tonnes per year |
16035 |
|
Industrial fibres |
Tonnes per year |
16200 |
|
Particulars |
Unit |
Actual
Production |
|
Sugar Cane |
Tonnes |
138173 |
|
Alcohol |
K.L. |
18324 |
|
Organic/Fine chemicals |
Tonnes |
9223 (c) |
|
Industrial fibres |
Tonnes |
6100 (d) (e) |
Notes:
(a) As certified by the management and relied upon by the
auditors being a technical matter.
(b) Licenced capacity in respect of product which requires
industrial licence:
|
Description |
Unit |
As at 31.03.2011 |
|
Alcohol |
K.L. per year |
45000 |
The licence transferred from DCM Limited pursuant to the
Scheme of Arrangement is yet to be transferred in the name of the Company.
(c) Production is net of internal transfers.
(d) Production is upto yarn stage only.
(e) Excludes material processed for third parties but
includes material processed by third parties.
GENERAL INFORMATION
|
No. of Employees : |
2466 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
A. F. Ferguson and Company Chartered Accountants |
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Address : |
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Associate : |
DCM Hyundai Limited (DHL) |
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Subsidiary: |
Daurala Foods and Beverages Private Limited |
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|
Enterprises over which key management personnel or their relatives are
able to exercise significant influence : |
·
Bantam Enterprises Private Limited (BEPL) ·
H.R. Travels Private Limited (HRTPL |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
65000000 |
Equity Shares |
Rs.10/- each |
Rs. 650.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17398437 |
Equity Shares |
Rs.10/- each |
Rs. 173.984
Millions |
|
|
|
|
|
i. There has been no movement in the equity shares in the current and previous year.
ii. The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.
iii. Shareholders holding more than 5% shares in the Company.
|
Name of the shareholder |
31.03.2012 Number of shares |
|
Bantam Enterprises Private Limited |
1374820 |
|
HB Stockholdings Limited |
4346615 |
|
Life Insurance Corporation of India |
1331259 |
|
Lily Commercial Private Limited |
1000243 |
|
Versa Trading Limited |
2224725 |
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 |
173.984 |
173.984 |
173.984 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1882.993 |
2080.644 |
2178.229 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2056.977 |
2254.628 |
2352.213 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3369.117 |
2644.754 |
2891.693 |
|
|
2] Unsecured Loans |
36.152 |
71.004 |
97.111 |
|
|
TOTAL BORROWING |
3405.269 |
2715.758 |
2988.804 |
|
|
DEFERRED TAX LIABILITIES |
338.337 |
435.594 |
479.499 |
|
|
|
|
|
|
|
|
TOTAL |
5800.583 |
5405.980 |
5820.516 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2850.146 |
2926.015 |
2756.877 |
|
|
Capital work-in-progress |
175.134 |
136.258 |
286.389 |
|
|
|
|
|
|
|
|
INVESTMENT |
328.979 |
71.377 |
72.573 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3999.316
|
3712.161
|
3718.085 |
|
|
Sundry Debtors |
888.839
|
654.000
|
634.364 |
|
|
Cash & Bank Balances |
157.913
|
67.091
|
123.611 |
|
|
Other Current Assets |
47.372
|
47.911
|
0.000 |
|
|
Loans & Advances |
513.662
|
444.814
|
446.032 |
|
Total
Current Assets |
5607.102
|
4925.977
|
4922.092 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2280.242
|
1848.438
|
1858.266 |
|
|
Other Current Liabilities |
788.254
|
706.120
|
201.781 |
|
|
Provisions |
92.282
|
99.089
|
157.368 |
|
Total
Current Liabilities |
3160.778
|
2653.647
|
2217.415 |
|
|
Net Current Assets |
2446.324
|
2272.330
|
2704.677 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5800.583 |
5405.980 |
5820.516 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9916.714 |
9048.534 |
8376.225 |
|
|
|
Other Income |
91.023 |
86.214 |
362.793 |
|
|
|
TOTAL (A) |
10007.737 |
9134.748 |
8739.018 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
0.000 |
0.000 |
7743.524 |
|
|
|
Cost of materials consumed |
6229.657 |
5481.222 |
0.000 |
|
|
|
Purchase of traded goods |
634.263 |
577.203 |
0.000 |
|
|
|
(Increase)/ Decrease in inventories of finished goods,
Work-in-progress and traded goods |
(276.808) |
(45.982) |
0.000 |
|
|
|
Employee benefits expense |
696.910 |
661.467 |
0.000 |
|
|
|
Other expenses |
2171.616 |
2028.326 |
0.000 |
|
|
|
TOTAL (B) |
9455.638 |
8702.236 |
7743.524 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
552.099 |
432.512 |
995.494 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
420.121 |
331.009 |
232.824 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) |
131.978 |
101.503 |
762.670 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
215.616 |
198.267 |
190.726 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE EXCEPTIONAL ITEM AND TAX |
(83.638) |
(96.764) |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL ITEM |
187.506 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
(271.144) |
(96.764) |
571.944 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(97.257) |
(41.753) |
182.671 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
(173.887) |
(55.011) |
389.273 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1059.849 |
1101.045 |
825.361 |
|
|
|
|
|
|
|
|
|
|
Debenture redemption reserve written back |
0.000 |
13.815 |
27.808 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend : Interim |
0.000 |
0.000 |
26.098 |
|
|
|
Final proposed |
0.000 |
0.000 |
52.195 |
|
|
|
Corporate dividend tax |
0.000 |
0.000 |
13.104 |
|
|
|
General reserve |
0.000 |
0.000 |
50.000 |
|
|
BALANCE CARRIED
TO THE B/S |
885.962 |
1059.849 |
1101.045 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
2441.114 |
1860.552 |
1905.754 |
|
|
TOTAL EARNINGS |
2441.114 |
1860.552 |
1905.754 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1104.620 |
837.342 |
973.004 |
|
|
|
Components and Spare parts |
44.772 |
31.498 |
14.842 |
|
|
|
Capital Goods |
0.000 |
0.000 |
26.344 |
|
|
TOTAL IMPORTS |
1149.392 |
868.840 |
1014.190 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(9.99) |
(3.16) |
22.37 |
|
QUARTERLY /
SUMMARISED RESULTS
|
Particular |
|
30.06.2012 |
30.09.2012 |
|
Audited / UnAudited |
|
UnAudited |
UnAudited |
|
|
|
1st Quarter |
2nd Quarter |
|
Net Sales |
|
2591.700 |
2577.600 |
|
Total Expenditure |
|
2389.200 |
2363.900 |
|
PBIDT (Excl OI) |
|
202.500 |
213.700 |
|
Other Income |
|
22.300 |
28.400 |
|
Operating Profit |
|
224.800 |
242.100 |
|
Interest |
|
142.000 |
102.300 |
|
Exceptional Items |
|
000 |
000 |
|
PBDT |
|
82.800 |
139.800 |
|
Depreciation |
|
52.500 |
52.400 |
|
Profit Before Tax |
|
30.300 |
87.400 |
|
Tax |
|
8.100 |
29.400 |
|
Provisions and contingencies |
|
000 |
000 |
|
Profit After Tax |
|
22.200 |
58.000 |
|
Extraordinary Items |
|
000 |
000 |
|
Prior Period Expenses |
|
000 |
000 |
|
Other Adjustments |
|
000 |
000 |
|
Net Profit |
|
22.200 |
58.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(1.74)
|
(0.60)
|
4.45 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.73)
|
(1.07)
|
6.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.21)
|
(1.23)
|
7.45 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.13)
|
(0.04)
|
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.19
|
2.38
|
2.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.77
|
1.86
|
2.22 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
FINANCIAL RESULTS
Turnover for the year including other income at Rs.10007.737 Millions against Rs. 9134.748 Millions in the previous year. There was a gross profit of Rs.131.978 Millions before exceptional item as compared to Rs.101.503 Millions in the previous year and net loss of Rs.173.887 Millions as compared to net loss of Rs. 55.011 Milions in the previous year. In view of the net loss for the year, the Directors have not recommended any dividend for the year.
OPERATIONS
Sugar
During the year Company achieved a sugar production of 0.132 Million MT by crushing 1.506 Millions MT of cane as against 0.138 Million MT of sugar and 1.510 Millions MT of cane crushed in the previous year.
The Company has been endeavouring to increase its revenue from co-generation of power and towards this end made changes to achieve a peak export of 25 MW as against 23 MW last year.
The financial year 2011-12 was turbulent for the sugar industry especially in U.P. Besides low sugar prices and low recovery in the region, the U.P. sugar industry faced a serious mismatch of sugar cane and sugar prices. The State Government further increased the SAP for cane payable by the industry. Additionally, the Supreme Court passed an adverse judgment directing sugar factories to pay cane price differential for the previous two years. The Company had to pay Rs.187.500 Millions on this account.
On the other hand, sugar prices remained soft because of weak sentiment and traders’ reluctance to carry inventory due to uncertainties in marketing policies. The prices were further impacted by sale of sugar by some mills against Court Orders. Sugar prices which at the beginning of the year were Rs. 2900 per quantity, remained range bound through-out the year, though the cane price increased by 17% over last year.
During the year, Government took some positive steps such as allowing 3 Million MT of exports and replacing the monthly release mechanism by quarterly releases for the current year. Though these steps have stabilised the sugar prices despite surplus sugar production in the Country, more needs to be done to provide relief and stability to the Industry. Considering a projected surplus sugar position, Government’s support would be essential to keep the sugar industry on an even keel.
The Unit’s performance during the season on key operating parameters such as cane crushed, sugarlosses, steam consumption and co-generation of power was satisfactory. Recovery in the entire region was adversely impacted by climatic and other agronomic conditions.
Alcohol
The overall performance and profitability of the Alcohol Business improved relative to the previous year due to improved selling prices and increased sales of high value added products (Anhydrou Alcohol and Extra Neutral Alcohol). Also, there were improvements in efficiencies and reduction in energy consumption. Overall demand for alcohol increased in most sectors, except for blending with petrol where the demand remained static.
Chemicals
The profitability of the Chemical business was adversely affected by a sharp increase in the cost of several raw materials, which could only be partially passed on to the market, as Chinese competitors, faced with surplus capacity and stocks, adopted aggressive pricing and marketing strategies. To mitigate the impact of the above, the Company continues to focus on new products and process/efficiency improvement.
Rayon
In spite of difficult global market conditions, especially in Europe, Shriram Rayons (SR) achieved its highest ever turnover during the year. Increase in sale, both in export and domestic markets, coupled with improved realisation helped the Unit achieve the same.
SR consolidated improvement in product quality and operational efficiency leading to wider acceptance of its products. With regular off-take of greige and treated fabric by two new European tyre customers, SR has been able to achieve higher value addition and export volumes. The Unit is pursuing approval of its products with new customers and expects further increase in export volumes.
To meet the market requirement, the Unit is implementing a project for Rayon expansion and modification. The yarn production capability is being increased by modification of the existing machines and installing balancing equipment. The higher fabric requirement anticipated will be met through enhancement of conversion capacity in the Textile Section.
Considering consistent growth in sale of Nylon Chafer, SR has upgraded nylon chafer dipping facilities during the year. Steps are being taken to increase the grey chafer conversion capacity.
SR further increased agro-fuel consumption and met 35% of the fuel requirement from renewable sources during the year to control energy cost and to promote clean fuel usage.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Company’s business comprises of sugar, alcohol, power,
chemicals and rayon, with manufacturing facilities at Daurala (U.P.) and Kota
(Rajasthan). The Directors’ Report gives an overview of these operations.
The industry situation and competitive scenarios for the various
products are given below:-
Sugar
The year 2011-12 began on a cautious note for the sugar industry because of high sugar production and availability, resulting in low sugar prices as well as losses during the last sugar season. The sentiment was subdued with traders reluctant to carry inventory because of fluctuating sugar prices. The sugar prices, which at the beginning of the year were around Rs.2900 per quantity remained range bound during the financial year 2011-12.
Sugar production in the season 2011-12 is estimated at 25.500 Million MT as against 24.000 Million MT last year. With a demand of 22.500 Million MT and carryover stock of 6 Million MT, the sugar balance was clearly in surplus, impacting market sentiment adversely. The industry made repeated representations to the Government to allow exports to reduce excess sugar inventory and provide liquidity. The Government allowed export of 3.000 Million MT during the year. Keeping in mind that next year’s production shall also exceed domestic consumption, regular unhindered export throughout the year 2012-13 is needed. Recently, the Government has allowed freer exports of sugar under OGL so as to facilitate quicker off-take of surplus sugar during season 2012-13.
Overall, the performance during the Season, except for sugar recovery, which was low for the entire region due to climatic reasons, was satisfactory. During the season the Unit crushed 14.840 Millions qtl. cane against 14.026 Milions qtl. last season with recovery of 8.74% against 9.07% last season. Sugar losses were lower at 1.99% against 2.11% last season. Peak power export was higher at 25 MW against 23 MW last year.
Towards the year end, Government replaced monthly release orders by quarterly release orders. The quantity of sugar released for the quarter is expected to help in stabilising sugar price between Rs.3000 – Rs.3100 per qtl.
The sugar industry in U.P. is facing serious problems in the absence of correlation in sugar cane and sugar prices. Additionally, the sugar recovery for entire region has dropped because of climatic and agronomic conditions. The Unit is actively pursuing cane development activities for developing/ growing high sugar cane varieties. Towards this the farmers are educated and duly involved. It is a long term process and is likely to take 2-3 years to get substantial returns. Sugar prices were further impacted by sale of sugar by some mills against Court Orders. Though the Hon’ble High Court has now nullified the additional release orders earlier allowed to the mills, on a plea made by the Department, this has had a negative impact on sugar prices and the market sentiment. The industry needs to behave responsibly and unitedly to reduce uncertainty and recover the losses.
An effective policy, beneficial for all the stake holders i.e. cane growers, consumers and sugar producers, is the need of the hour. Additionally, the Government needs to take corrective action with regard to levy sugar which is placing an unsustainable burden on the sugar industry. The coming year poses a challenge to the industry and there is need to improve on all key parameters
Alcohol
Due to limited availability of tradeable molasses, consequent to several sugar factories in U.P. setting up their own distilleries, production in the distillery was restricted to the extent of the Company’s own generation of molasses. In view of this limited molasses availability and alcohol production, the Company’s focus has been on expanding sales of value added products like Extra Neutral Alcohol and Anhydrous Alcohol, and improving selling prices.
The demand for alcohol from the chemical sector increased, as the viability of the production of chemicals by the alcohol route improved. The growth of demand in the potable sector remained steady. Off-take of alcohol by the oil companies for blending with petrol remained at last year’s level. The Government’s efforts to expand the gasohol programme have not been successful so far due to low prices offered by the oil companies for alcohol and reluctance of some states to participate.
Chemicals
The drop in profitability of the Chemicals business vis-a-vis the previous year was due to a sharp increase in the cost of raw materials. While efforts were made to increase the selling prices, only a part of the cost increase could be passed on to the market due to aggressive pricing and marketing policies of Chinese manufacturers, who have increased their capacities for similar products, as well as downstream products.
The Government had introduced a “Focus Product Scheme” a few years ago, to assist some select sectors in their export effort. During the year, some of the Company’s products have been included in this scheme, which should provide some relief.
To mitigate the impact of the difficult market conditions, the Company continues to focus on new products, and process/efficiency improvement.
The Company will commence contract manufacturing of a new product in 2012-13.
Rayon
Shriram Rayons is engaged in production and export of rayon tyre cord, yarn and fabric to international tyre producers for use in high performance tyres.
In spite of global economic recession and demand supply problems in Europe, SR was successful in adding two large customers with value added products, greige and dipped fabric. These helped the Unit achieve wider customer base, higher export sale and increased value addition during the year.
Further, during the year, the existing and new European customers started sourcing rayon products for their upcoming plants in Asia. This has also helped SR widen its geographical base.
SR is also pursuing approval of its products at different plant locations of the existing as well as new customers. This is expected to enhance the export further. Keeping this in view, SR is implementing expansion and modification project to improve production capability as well as textile conversion capacity.
During the year, SR maintained gains in operational efficiencies and improvement in product quality attributes.
The Unit is also supplying nylon chafer in the domestic tyre market and achieved consistent growth in sale of this product. Up-gradation of chafer production facilities is under progress for supplying additional quantity, quality improvement and cost reduction. We intend to consolidate these gains by increasing in-house greige chafer capacity.
Energy is one of the significant elements in cost structure of the Unit. In order to reduce dependenceon coal, the Unit took steps to modify its Power House for usage of agro-fuel. SR has been consistently increasing use of agro-fuel. This has also resulted in reducing dependence on open market coal purchases which have been brought down from a level of 45% to less than 10% during the year in spite of increase in production. The Unit also has a large bank of solar panels to heat boiler fed water. SR met 35% of its fuel requirement from renewable sources during the year.
FIXED ASSETS
· Land
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
· Office Equipments
CONTINGENT LIABILITIES
(Rs in Millions)
|
Particular |
31.03.2012 |
31.03.2011 |
|
Income tax matters* |
166.160 |
19.340 |
|
Excise / Service tax / Customs duty matters* |
73.479 |
92.861 |
|
Claims against the Company not acknowledge as debts (excluding claims by employees, where amount is not ascertainable) |
102.554 |
108.851 |
|
Bills discounted |
233.653 |
142.250 |
* Matters are subject to legal proceedings in the ordinary course of business. The legal proceedings, when ultimately concluded will not, in the opinion of the management, have a material effect on the results of the operations or financial position.
UNAUDITED FINANCIAL RESULTS FOR THE
QUARTERAND SIX MONTHS ENDED 30TH SEPTEMBER, 2012
(Rs in Millions)
|
|
Three months ended |
Six months ended |
|
|
Particular |
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income from
operations |
|
|
|
|
(a) Net Sales / Income from operations |
2535.700 |
2534.900 |
5070.600 |
|
(Net of excise duty) |
|
|
|
|
(b) Other Operating Income |
41.900 |
56.800 |
98.700 |
|
Total (1) |
2577.600 |
2591.700 |
5169.300 |
|
Expenses |
|
|
|
|
a) Cost of materials consumed |
713.500 |
750.200 |
1463.700 |
|
b) Purchases of stock-in-trade |
151.500 |
221.100 |
372.600 |
|
c) Changes in inventories of finished |
|
|
|
|
goods, work-in-progress and |
|
|
|
|
stock-in-trade |
822.800 |
780.000 |
1602.800 |
|
d) Employee benefits expense |
181.800 |
185.800 |
367.600 |
|
e) Depreciation and amortisation |
52.400 |
52.500 |
104.900 |
|
f) Stores, Spares & Components |
125.300 |
103.800 |
229.100 |
|
g) Power & Fuel |
211.300 |
180.800 |
392.100 |
|
h) Other expenses |
157.700 |
167.500 |
325.200 |
|
Total (2) |
2416.300 |
2441.700 |
4858.000 |
|
Profit / (Loss) from
Operations before other income, finance costs and exceptional item (1-2) |
161.300 |
150.000 |
311.300 |
|
Other Income |
28.400 |
22.300 |
50.700 |
|
Profit / (Loss)
from ordinary activities before finance costs and exceptional item (3+4) |
189.700 |
172.300 |
362.000 |
|
Finance costs |
102.300 |
142.000 |
244.300 |
|
Profit / (Loss) from ordinary activities after finance costs but before exceptional item (5-6) |
87.400 |
30.300 |
117.700 |
|
Exceptional item |
- |
- |
- |
|
Profit / (Loss) from
ordinary activities before tax (7+8) |
87.400 |
30.300 |
117.700 |
|
Tax expense |
29.400 |
8.100 |
37.500 |
|
Net Profit / (Loss)
for the period (9-10) |
58.000 |
22.200 |
80.200 |
|
Paid-up equity share capital |
|
|
|
|
(Face value Rs. 10/-) |
174.000 |
174.000 |
174.000 |
|
Reserves excluding revaluation reserve |
- |
- |
- |
|
Basic and diluted earnings per share for the period (Rs.) |
|
|
|
|
- Before exceptional item |
3.33 |
1.28 |
4.61 |
|
- After exceptional item |
3.33 |
1.28 |
4.61 |
|
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
Public shareholding |
|
|
|
|
- Number of Shares ('000) |
9806 |
9809 |
9806 |
|
- Percentage of Shareholding |
56.4% |
56.4% |
56.4% |
|
Promoters and promoter Group Shareholding (a) Pledged / Encumbered * |
|
|
|
|
- Number of Shares ('000) |
1659 |
1659 |
1659 |
|
- % of the total shareholding of |
|
|
|
|
promoters and promoter group |
21.9% |
21.9% |
21.9% |
|
- % of the total share capital of the |
|
|
|
|
company |
9.5% |
9.5% |
9.5% |
|
(b) Non- Encumbered |
|
|
|
|
- Number of Shares ('000) |
5934 |
5931 |
5934 |
|
- % of the total shareholding of |
|
|
|
|
promoters and promoter group |
78.2% |
78.1% |
78.2% |
|
- % of the total share capital of the |
|
|
|
|
company |
34.1% |
34.1% |
34.1% |
THE SHARES
HAVE BEEN RELEASED FROM PLEDGE ON 15.10.2012
|
|
PARTICULARS |
3 Months
Ended 30.09.2012 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending
at the beginning of the quarter |
Nil |
|
|
Received
during the quarter |
1 |
|
|
Disposed
off during the quarter |
1 |
|
|
Remaining
unresolved at the end of the quarter |
Nil |
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs in Millions)
|
|
Three months ended |
Six months ended |
|
|
Particular |
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
Segment
Revenue |
|
|
|
|
(a)
Sugar* |
1380.300 |
1336.100 |
2716.400 |
|
(b)
Industrial Fibres and related products |
580.000 |
613.000 |
1193.000 |
|
(c)
Chemicals |
617.300 |
642.600 |
1259.900 |
|
Total |
2577.600 |
2591.700 |
5169.300 |
|
(d)
Less : Inter segment revenue |
- |
- |
- |
|
Income from operations |
2577.600 |
2591.700 |
5169.300 |
|
Segment
Results |
|
|
|
|
Profit
/ (Loss) before tax and finance costs |
|
|
|
|
(a)
Sugar* |
151.900 |
94.200 |
246.100 |
|
(b)
Industrial Fibres and related products |
57.900 |
70.400 |
128.300 |
|
(c)
Chemicals |
13.300 |
31.300 |
44.600 |
|
Total |
223.100 |
195.900 |
419.000 |
|
(d)
Less : i) Finance costs |
102.300 |
142.000 |
244.300 |
|
ii)
Other unallowable expenditure net of unallocable income |
33.400 |
23.600 |
57.000 |
|
iii)
Exceptional item |
- |
- |
- |
|
Total Profit / (Loss)
Before Tax |
87.400 |
30.300 |
117.700 |
|
Capital
Employed |
|
|
|
|
(Segment
assets - Segment |
|
|
|
|
liabilities) |
|
|
|
|
(a)
Sugar* |
2109.900 |
3052.900 |
2109.900 |
|
(b)
Industrial Fibres and related products |
1439.300 |
1504.400 |
1439.300 |
|
(c)
Chemicals |
750.900 |
707.100 |
750.900 |
|
Total Segment Capital
Employed |
4300.100 |
5264.400 |
4300.100 |
*Comprising of sugar, power and alcohol
STATEMENT OF ASSETS AND LIABILITIES
(Rs in Millions)
|
Particulars |
As at |
|
|
30.09.2012 |
|
A EQUITY AND
LIABILITIES |
|
|
1.
Shareholders'funds |
|
|
(a) Share Capital |
174.000 |
|
(b) Reserves & surplus |
1952.400 |
|
Sub-total |
2126.400 |
|
2. Non-current
liabilities |
|
|
(a) Long-term borrowings |
750.500 |
|
(b) Deferred tax liabilities (net) |
375.900 |
|
(c) Other long-term liabilities |
34.600 |
|
(d) Long-term provisions |
75.500 |
|
Sub-total |
1236.500 |
|
3. Current
liabilities |
|
|
(a) Short-term borrowings |
1075.500 |
|
(b) Trade payables |
1665.100 |
|
(c) Other current liabilities |
642.500 |
|
(d) Short-term provisions |
20.700 |
|
Sub-total |
3403.800 |
|
Total |
6766.700 |
|
B ASSETS |
|
|
1. Non-current
assets |
|
|
(a) Fixed assets |
3051.100 |
|
(b) Non-current investments |
61.300 |
|
(c) Long-term loans and advances |
289.700 |
|
(d) Other non-current assets |
0.000 |
|
Sub-total |
3402.100 |
|
2. Current assets |
|
|
(a) Inventories |
2267.900 |
|
(b) Trade receivables |
741.600 |
|
(c) Cash and cash equivalents |
79.700 |
|
(d) Short-term loans and advances |
186.700 |
|
(e) Other current assets |
2.300 |
|
(f) Current Investment |
86.400 |
|
Sub-total |
3364.600 |
|
Total |
6766.700 |
NOTES:
·
In
accordance with the accounting policy consistently followed by the Company,
off-season expenditure aggregating Rs. 235.000 Millions (corresponding previous
six months Rs. 336.400 Millions) has been deferred for inclusion in the cost of
sugar to be produced in the remainder of the year and is considered as
"Inventory" for these results.
·
Liabilities
/ benefits, if any, out of reorganization arrangement of DCM Limited in 1990
will be accounted for, if and when these arise.
·
A
Petition challenging the Preferential Issue of capital by the Company filed by
a shareholder before the Hon'ble Company Law Board is pending since November
2007.
·
Previous
period figures have been regrouped / recast, wherever necessary.
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 records 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. 54.98 |
|
|
1 |
Rs. 88.11 |
|
Euro |
1 |
Rs. 71.67 |
INFORMATION DETAILS
|
Report Prepared
by : |
UDS |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
42 |
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.