MIRA
INFORM REPORT
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Report Date : |
08.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN TEXTILES
LIMITED (w.e.f. 06.10.2006) |
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Formerly Known
As : |
MAHAVIR SPINNING
MILLS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
08.10.1973 |
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Com. Reg. No.: |
16-003345 |
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Capital
Investment / Paid-up Capital : |
Rs. 636.519 Millions |
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CIN No.: [Company Identification
No.] |
L17111PB1973PLC003345 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JLDM03450G JLDM03167D |
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PAN No.: [Permanent Account No.] |
AABCM4692E |
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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 and
Seller of Cotton Yarn, Acrylic Yarn, Polyester Sewing Threads, Steel, Yarn of
Synthetic Staple Fibre, Woven Fabric of Cotton and Alloy Steel Ingots. |
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No. of Employees
: |
26000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 79000000 |
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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 a part of the Vardhman Group. The Vaerdhman Group has a
healthy business risk profile, marked by its strong market position in the textile
sector. It is one of the largest spinners in the Indian textile market. Subject is a well established and a reputed company having good track
record. Financial position of the company appears to be sound. There appears some dip in the profitability of the company during
2012. However, trade relations are reported as trustworthy. Business is
active. Payment terms are regular and as per commitment. The company can be considered good 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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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Rating Agency Name |
CRISIL |
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Rating |
Long Term Rating = AA |
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Rating Explanation |
High degree of safety and very low credit risk. |
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Date |
10.10.2012 |
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Rating Agency Name |
CRISIL |
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Rating |
Short Term Rating = A1+ |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
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Date |
10.10.2012 |
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
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Registered Office / Corporate
Office : |
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Tel. No.: |
91-161-2662543-47
/ 2670707 / 09/ 2228943-48 |
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Fax No.: |
91-161-2662542 /
2664541 / 2670503 / 2601040 / 2601048 / 2602710/ 2222616 |
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E-Mail : |
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Website : |
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Head Office and Works : |
C-58, Focal Point, Ludhiana - 141 010, Punjab, India |
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Tel. No.: |
91-161-2670707, 2670708, 2670709 |
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Fax No.: |
91-161-2670503 |
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E-Mail : |
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Plants : |
· Anant Spinning Mills, New Industrial Area, Mandideep - 462 046, Madhya Pradesh, India · Arihant Spinning Mills Industrial Area, Malerkotla-148 023, Punjab, India · Arisht Spinning Mills , Village Baddi, Teh. Nalagarh, District Solan -173 205, Himachal Pradesh, India · Auro Spinning Mills, Village Baddi, Teh. Nalagarh, District Solan -173 205, Himachal Pradesh, India · Auro Dyeing, Village Baddi, Teh. Nalagarh, District Solan - 173 205, Himachal Pradesh, India · Auro Weaving Mills, Village Baddi, Teh. Nalagarh, District Solan - 173 205, Himachal Pradesh, India · Auro Textiles, Village Baddi, Teh. Nalagarh, District Solan - 173 205, Himachal Pradesh, India · Mahavir Spinning Mills (Gassed Mercerised Yarn Unit) Phagwara Road, Hoshiarpur-146 001, Punjab, India · Mahavir Spinning Mills (Textile Division) Village Baddi, Teh. Nalagarh, District Solan - 173 205, Himachal Pradesh, India · Vardhman Spinning Mills, Village Baddi, Teh. Nalagarh, District Solan - 173 205, Himachal Pradesh, India · Vardhman Spinning and General Mills (Unit-IandII), Chandigarh Road, Ludhiana-141 010, Punjab, India · Vardhman Fabrics Budhni, District Sehore, Madhya Pradesh, India · Vardhman Yarns Budhni, District Sehore, Madhya Pradesh, India · Vardhman Fabrics (Power Division) Budhni, District Sehore, Madhya Pradesh, India · Vardhman Yarns (Power Division) Budhni, District Sehore, Madhya Pradesh, India |
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Branch Office : |
·
P-22, 3rd Floor, Flat
No.6, C.I.T. Road, Scheme IV, Kolkata- 700 014, West Bengal, India ·
Chandigarh Road,
Ludhiana- 141 010, Punjab, India ·
314, Solaris II, Opp. L
and T Gate No.6, Saki Vihar Road, Andheri (East), Mumbai- 400 072,
Maharashtra, India ·
504, Dalamal House,
Nariman Point, Mumbai- 400 021, Maharashtra, India ·
309-310, Surya Kiran Building,
19, Kasturba Gandhi Marg, New Delhi- 110 001, India ·
377-B, Muthuswami
Industrial Complex, Palladam Road, Tirupur- 638604, Tamilnadu, India ·
1st Floor, Palm Court, Opposite
Management Development Institute, MG Road, Sector - 16, Gurgaon - 122 001,
Haryana, India |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Shri Paul
Oswal |
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Designation : |
Chairman and Managing Director |
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Qualification : |
M. Com. |
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Date of Appointment : |
01.11.2001 |
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Name : |
Mr. S.
Padmanabhan |
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Designation : |
Nominee of IDBI |
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Name : |
Mr. Arun Kumar
Purwar |
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Designation : |
Director |
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Name : |
Mr. Prafull
Anubhai |
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Designation : |
Director |
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Date of Birth/Age : |
20.01.1938 |
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Qualification : |
B.Com, B.S.C. (Eco.) – |
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Date of Appointment : |
26.07.1980 |
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Name : |
Mr. Ashok Kumar Kundra |
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Designation : |
Director |
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Name : |
Mr. Darshan Lal
Sharma |
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Designation : |
President and Executive Director |
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Name : |
Mr. Shravan Talwar |
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Designation : |
Director |
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Date of Birth/Age : |
17.04.1970 |
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Qualification : |
B.A. (Computational and Applied Maths and Economics), M.B.A. |
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Experience : |
Business Executive having rich experience of more than 12 years in the field of Strategic Planning, marketing and Restructuring of Business Operations |
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Date of Appointment : |
29.01.2010 |
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Directorships of
Other Companies as on 31st March,
2012 |
1. Moolchand Healthcare Private Limited 2. Destiny Health Private Limited 3. Moolchand Healthcare Foundation |
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Name : |
Mr. Sachit Jain |
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Designation : |
Executive Director |
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Date of Birth/Age : |
08.07.1966 |
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Qualification : |
B. Tech., MBA |
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Date of Appointment : |
30.03.2005 |
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Name : |
Mrs. Suchita Jain |
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Designation : |
Executive Director |
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Date of Birth/Age : |
20.03.1968 |
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Qualification : |
M.Com |
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Experience : |
Rich experience of more than 19 years in Textile Industry |
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Date of Appointment : |
29.01.2010 |
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Directorships of
Other Companies as on 31st March,
2012 |
1. Syracuse Investment and Trading Company Private Limited 2. Srestha Holdings Limited 3. Anklesh Investments Private Limited 4. Pradeep Mercantile Company Private Limited 5. Plaza Trading Company Private Limited 6. Marshall Investment and Trading Company Private Limited 7. Santon Finance and Investment Company Limited 8. Flamingo Finance and Investment Company Limited 9. Ramaniya Finance and Investment Company Limited 10. Vardhman Spinning and General Mills Limited 11. Vardhman Holding Limited 12. Vardhman Special Steels Limited |
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Name : |
Mr. Neeraj Jain |
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Designation : |
Executive Director |
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Name : |
Mr. Subash
Khanchand Bijlani |
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Designation : |
Director |
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Date of Birth/Age : |
06.09.1942 |
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Qualification : |
B. Tech, PGDC in Mgt and Finance |
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Experience : |
Industrial and Business experience of more than 33 years. |
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Date of Appointment : |
30.03.2005 |
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Directorships of
Other Companies as on 31st March,
2012 |
1. Magnus Consulting Private Limited 2. Punjab Information and Communication Technology Corporation Limited 3. Max India Limited |
KEY EXECUTIVES
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Name : |
Ms. Karan Kamal Walia |
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Designation : |
Company Secretary |
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Name : |
Mr. Rajeev Thapar |
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Designation : |
CGM (Finance, Accounts and Taxation) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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A) Shareholding of Promoter and Promoter Group |
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1461658 |
2.30 |
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37703660 |
59.23 |
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39165318 |
61.53 |
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Total shareholding of Promoter and Promoter Group (A) |
39165318 |
61.53 |
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(B) Public Shareholding |
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|
12794068 |
20.10 |
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|
80304 |
0.13 |
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|
1465027 |
2.30 |
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|
589212 |
0.93 |
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14928611 |
23.45 |
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|
979082 |
1.54 |
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|
4668056 |
7.33 |
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|
2184600 |
3.43 |
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|
1726212 |
2.71 |
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|
1628904 |
2.56 |
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|
97308 |
0.15 |
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|
9557950 |
15.02 |
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Total Public shareholding (B) |
24486561 |
38.47 |
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Total (A)+(B) |
63651879 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
63651879 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and
Seller of Cotton Yarn, Acrylic Yarn, Polyester Sewing Threads, Steel, Yarn of
Synthetic Staple Fibre, Woven Fabric of Cotton and Alloy Steel Ingots. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Spindles |
No |
747936 |
-- |
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Looms |
No |
900 |
-- |
|
Rotors |
No |
3768 |
-- |
|
Steel Ingots/Billets |
MT |
-- |
64581 |
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Rolled Products |
MT |
-- |
57060 |
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Yarn |
MT |
-- |
130861 |
|
Fabric $ |
MN Mtrs |
-- |
114.08 |
|
Processed Fabric |
MN Mtrs |
-- |
74.44 |
GENERAL INFORMATION
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No. of Employees : |
26000 (Approximately) |
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Bankers : |
· State Bank of Patiala · Allahabad Bank · ICICI Bank Limited · Punjab National Bank · State Bank of India · Bank of India · Corporation Bank · IDBI Bank Limited · Canara Bank · Standard Chartered Bank · State Bank of Hyderabad · State Bank of Mysore · Axis Bank Limited · Exim Bank · Oriental Bank of Commerce |
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Facilities : |
(Rs.
In Millions)
Details of security
for working capital borrowings Working capital borrowings from banks are secured by way of
hypothecation of entire present and future tangible current assets of the
company as well as a second charge on the entire present and future fixed
assets of the company. Terms of
repayment of loans repayable on demand i) From banks are repayable on demand and carries interest @ 12.25% to 13.25% p.a. ii) From related parties carries interest @ 9.25% to 10% p.a. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S C Vasudeva and
Company Chartered
Accountants |
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Address : |
New Delhi, India |
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Subsidiaries : |
· VMT Spinning Company Limited · Vardhman Acrylics Limited · VTL Investments Limited · Vardhman Yarns and Threads Limited · Vardhman Special Steels Limited (upto 7th April, 2011) · Vardhman Nisshinbo Garments Company Limited (Formerly known as Vardhman Texgarments Limited) |
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Associates : |
· Vardhman Textile Components Limited · Vardhman Spinning and General Mills Limited ·
Vardhman Special Steels Limited (w.e.f 8th
April, 2011) |
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Enterprises over
which key Management Personnel and relative of such personnel is able to
exercise significant influence or control |
· Vardhman Holdings Limited · Vardhman Apparels Limited · Banarso Devi Oswal Public Charitable Trust · Sri Aurobindo Socio Economic and Management Research Institute · Adinath Investment and Trading Company · Devakar Investment and Trading Company Limited · Srestha Holdings Limited · Santon Finance and Investment Company Limited · Flamingo Finance and Investment Company Limited · Ramaniya Finance and Investment Company Limited · Marshall Investment and Trading Company Private Limited · Pardeep Mercentile Company Private Limited · Plaza Trading Company Private Limited · Anklesh Investment Private Limited · Syracuse Investment and Trading Company Private Limited · Mahavir Spinning Mills Private Limited (Formerly known as Vardhman Textiles Processors Private Limited) · Northern Trading Company |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90000000 |
Equity Shares |
Rs.10/- each |
Rs.900.000 Millions |
|
10000000 |
Redeemable Cumulative Preference Shares |
Rs. 10/- each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63651879 |
Equity Shares |
Rs.10/- each |
Rs.636.519
Millions |
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|
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|
Reconciliation of the Number of shares and amount outstanding at the
beginning and at the end of the reporting period
|
Equity shares |
Number |
Rs. In Millions |
|
At the beginning of the reporting period |
63.652 |
636.519 |
|
Add: Issued during the reporting period |
-- |
-- |
|
Outstanding at the end of the reporting period |
63.652 |
636.519 |
Rights, preferences
and restrictions attached to equity shares
The company has one class of equity shares having a par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.
During the year ended March 31, 2012 the amount of per share dividend recognised as distributions to equity shareholders was Rs.4.50 per share (Previous Year: Rs.4.50).The rate of dividend for redeemable cumulative preference shares is decided by the board of directors as and when issued.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Shares held by
holding company or its ultimate holding company or subsidiaries or associates
of the holding company or the ultimate holding company in aggregate.
There is no holding or ultimate holding company of the company
Detail of
shareholders holding more than 5% shares in the Company
|
Class of shares and Name of shareholder |
Number (In Lacs) |
% shareholding |
|
Equity shares of Rs.10/- each fully paid |
|
|
|
Devakar Investment and Trading Company Private Limited |
55.41 |
8.70% |
|
Adinath Investment and Trading Company |
126.13 |
19.80% |
|
Vardhman Holdings Limited |
154.03 |
24.20% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.20010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
636.519 |
636.519 |
577.695 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
19323.658 |
18546.096 |
13980.801 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
19960.177 |
19182.615 |
14558.496 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
24028.865 |
26163.483 |
22267.028 |
|
|
2] Unsecured Loans |
356.765 |
662.975 |
3940.951 |
|
|
TOTAL BORROWING |
24385.630 |
26826.458 |
26207.979 |
|
|
DEFERRED TAX LIABILITIES |
2028.523 |
1968.053 |
1963.807 |
|
|
|
|
|
|
|
|
TOTAL |
46374.330 |
47977.126 |
42730.282 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
21951.513 |
21256.569 |
21823.871 |
|
|
Capital work-in-progress |
1819.122 |
1140.888 |
406.316 |
|
|
|
|
|
|
|
|
INVESTMENT |
5147.178 |
3526.478 |
2804.849 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
13152.309
|
15983.946 |
11074.593 |
|
|
Sundry Debtors |
5368.302
|
4895.760 |
3973.369 |
|
|
Cash & Bank Balances |
584.158
|
487.432 |
2220.701 |
|
|
Other Current Assets |
178.651
|
178.695 |
0.000 |
|
|
Other Non-Current Assets |
0.204
|
0.267 |
0.000 |
|
|
Loans & Advances |
3598.620
|
4844.880 |
3096.830 |
|
Total
Current Assets |
22882.244
|
26390.980 |
20365.493 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
836.821
|
832.063 |
543.198 |
|
|
Other Current Liabilities |
4180.532
|
3089.980 |
1939.695 |
|
|
Provisions |
408.374
|
415.746 |
187.354 |
|
Total
Current Liabilities |
5425.727
|
4337.789 |
2670.247 |
|
|
Net Current Assets |
17456.517
|
22053.191 |
17695.246 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
46374.330 |
47977.126 |
42730.282 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.20010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
39180.015 |
36068.116 |
27429.536 |
|
|
|
Other Income |
605.707 |
432.380 |
549.693 |
|
|
|
TOTAL (A) |
39785.722 |
36500.496 |
27979.229 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
21864.912 |
18148.548 |
|
|
|
|
Purchase of stock-in-trade |
448.641 |
556.274 |
|
|
|
|
Changes in inventories of finished goods and work-in-progress and stock-in-trade |
1269.049 |
(2151.775) |
22032.902 |
|
|
|
Employee benefits expense |
2211.299 |
2079.274 |
|
|
|
|
Other expenses |
8458.267 |
8423.697 |
|
|
|
|
TOTAL (B) |
34252.168 |
27056.018 |
22032.902 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5533.554 |
9444.478 |
5946.327 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1732.227 |
1098.122 |
867.330 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3801.327 |
8346.356 |
5078.997 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2346.718 |
2260.236 |
2208.757 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1454.609 |
6086.120 |
2870.240 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
357.949 |
1389.071 |
732.610 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1096.660 |
4697.049 |
2137.630 |
|
|
|
|
|
|
|
|
|
Add |
Corporate
Dividend Tax Written Back |
13.800 |
12.344 |
19.515 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2438.875 |
1313.556 |
608.504 |
|
|
|
|
|
|
|
|
|
Less |
Adjustment of preceding
year’s tax effect in respect of premium paid on redemption of FCCB’s |
0.000 |
251.174 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1500.000 |
3000.000 |
1250.000 |
|
|
|
Dividend |
286.400 |
286.433 |
173.309 |
|
|
|
Tax on Dividend |
46.500 |
46.467 |
28.784 |
|
|
BALANCE CARRIED
TO THE B/S |
1716.435 |
2438.875 |
1313.556 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
16030.788 |
12182.627 |
7040.035 |
|
|
TOTAL EARNINGS |
16030.788 |
12182.627 |
7040.035 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1072.497 |
1447.661 |
1348.981 |
|
|
|
Components & Spare Parts |
426.394 |
418.539 |
346.618 |
|
|
|
Capital Goods |
1263.147 |
1249.822 |
713.403 |
|
|
TOTAL IMPORTS |
2762.038 |
3116.022 |
2409.002 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.23 |
74.21 |
37.00 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
9481.900 |
10199.000 |
|
Total Expenditure |
|
7696.800 |
8169.200 |
|
PBIDT (Excl OI) |
|
1785.100 |
2029.800 |
|
Other Income |
|
90.900 |
36.500 |
|
Operating Profit |
|
1876.000 |
2066.300 |
|
Interest |
|
500.600 |
467.400 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
1375.400 |
1598.900 |
|
Depreciation |
|
626.500 |
629.400 |
|
Profit Before Tax |
|
748.900 |
969.500 |
|
Tax |
|
200.000 |
270.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
548.900 |
699.500 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
548.900 |
699.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.20010 |
|
PAT / Total Income |
(%) |
2.76
|
12.87 |
7.64 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.71
|
16.67 |
10.46 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.14
|
12.77 |
6.80 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.32 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.49
|
1.62 |
2.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.22
|
6.08 |
7.63 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
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 |
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT:
BUSINESS REVIEW:
ECONOMIC OUTLOOK
The global economy is struggling for revival of growth after experiencing weak performance in the second half of 2011 and first quarter of 2012. However, there are serious downsides risks emanating from the uncertainties in economic policies prescribed by EU and restrained fiscal expansionary policies by USA. The short fall in global demand attributed by tough economic conditions in developed countries has not been compensated by surge in domestic demand in emerging economies.
In such situation, the global economy is projected to grow at 3.5% in 2012 and 4.1% in 2013. In developed countries block, SA is projected to record 2% economic growth followed by 2.4% in 2013 whereas, EU may experience a mild recession in 2012 and output may shrink by 0.3% before growing by less than 1% in the following year. The emerging and developing economies are also expected to experience lower growth of 5.7% in 2012 against 6.2% in 2011 and may grow by 6% in 2013. China is projected to grow by 8.2% in 2012, which is lower as compared to years 2010 and 2011. India is also projected to grow by 6% and about 7% in 2012 and 2013 respectively. However, this growth projection is not unconditional. It is subject to major disruptions in world financial markets especially in EU, which can spill over to developing countries banking system also because of high leveraged banks and greater cross border exposure of banking system.
In addition to global pressures on Indian economic performance, structural problems related to infrastructure, lower productivity levels and lack of policy reforms are other major concern areas. Moreover, higher inflationary pressures are also resulting in tighter monetary policies thereby restricting the industrial growth in India
Cotton
The global cotton price which is largely a function of global demand and supply of cotton has been influenced by factors other than actual user demand and overall supply of cotton in 2011-12. The Chinese policy of accumulating cotton for strategic reserves and occasional policy decisions of Indian Government in relation to export of cotton has caused much volatility in cotton prices. The Cotlook Index -A for the year 2011- 12 was 102 US cents /lbs in comparison to 164 US cents/lbs in 2010-11.
The global cotton production is estimated at 27.16 million tons in 2011-12, which is expected to decline to 24.9 million tons in 2012-13 due to lower area under cotton cultivation in sync with moderation in global cotton prices to an extent. The global mill consumption of cotton is estimated at 22.7 million tons in 2011-12 and is projected to grow moderately in 2012-13.
Yarn
Financial year 2011-12 was a year rampant with nervousness and unpredictability, which was not a conducive environment for business. The ban on the exports of cotton yarn in January, 2011 seriously impacted the industry and there was accumulation of inventory till end of March, 2011. The Government announced its new policy on export of Cotton Yarn in first week of April, 2011 and yarn export was brought under Open General Licence. As a result, the yarn prices moved in a wide range for the first half of the year. Most of the textile mills, particularly which are predominantly spinning, suffered losses including losses incurred by the writing down of the stock of cotton and yarn held by the end of June, 2011. However, it was only in the second half that things showed some signs of stabilization.
All India yarn production was lower by an estimated 15% due to (i) Power crisis in the South (ii) Huge inventory losses as referred above resulting in severe shortage of working capital availability to some companies (iii) Acute labour shortage across India (iv) Sharp fall in yarn prices as compared to last year propelling voluntary cut in production.
However, this year production is expected to increase even though margins are expected to be on the lower side only. There is also a noticeable trend of increasing value addition in products. The removal of trade barriers with Bangladesh is yet to show any impact on the Indian Industry.
Overall the year is expected to be more stable due to expectation that cotton will be much less volatile than last year. Growth of the industry will hinge on recovery in the global economy although Indian demand is expected to increase at a relatively moderate rate.
COMPANY’S FUTURE
OUTLOOK
The expansion project of 2nd line of fabric processing in Budhni plant is expected to be completed by July end and ramp up of the capacity will continue for every subsequent month. It is expected that during 4th quarter, the Company will get full benefit of the expansion. Also, the weaving project of 200 looms shall see partial commissioning starting from August, 2012.
The depreciation of the rupee should help in absorbing the rising cost of power and labour to keep the industry competitive.
FINANCIAL ANALYSIS
AND REVIEW OF OPERATIONS:
PRODUCTION AND SALES
REVIEW:
During the year, the Company has registered Revenue from Operations of Rs.39180.015 Millions as compared to Rs.36068.116 Millions showing an increase of 8.63% over previous year. The exports of the Company increased from Rs.12182.600 Millions to Rs.16030.800 Millions, showing an increase of 31.59% over the previous year owing to enhanced production and better product/market penetration. The business wise performance is as under:-
Yarn:
The production of Yarn increased from 130,858 MT to 138,046 MT during the year 2011-12. The sales revenue of yarn increased from Rs.20362.700 Millions to Rs.24217.700 Millions during the year.
Fabric:
During the year, the production of fabric (grey and processed) was 187.12 million meter as compared to 189.52 million meter in the previous year. The sales revenue of the fabric (grey and processed) increased from Rs.10712.700 Millions to Rs.11998.100 Millions showing an increase of 11.25% over the previous year.
CONTINGENT
LIABILITIES
Rs. In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
Claims not acknowledged as debts |
87.803 |
103.407 |
|
Bank Guarantees and Letters of Credit outstanding |
1658.171 |
1526.442 |
|
Bills discounted with banks |
828.988 |
822.102 |
Other monies for which the company is contingently liable
a) The Company has contested the additional demand in respect of Sales Tax, Excise Duty etc., amounting to Rs.61.366 Millions (Previous Year Rs.57.285 Millions). As against this a sum of Rs.20.074 Millions (Previous Year Rs.20.139 Millions) has been deposited under protest and stands included under the head “Advances and other recoverables in cash or in kind”. The Company has filed an appeal with the Appellate Authorities and is advised that the demand is not in accordance with law. No provision, therefore, has been made in accounts in respect thereof.
b) The Company has contested the additional demand in respect of income tax amounting to Rs.481.900 Millions (previous Year Rs.340.000 Millions). Pending appeal with Appellate Authorities, provision of Rs.282.300 Millions (Previous Year Rs.200.400 Millions) has not been made in the books of account as the company is confident to get the desired relief.
c) The company had taken over the textile undertaking of Vardhman Holdings Limited by a scheme of Arrangement and De-merger. An injunction was obtained against the London Branch of the said textile undertaking for preventing disposal of assets upto the value of Pound Sterling Rs.0.299 Million as a result of a court case pending in London for alleged non-fulfillment of an agreement of cotton purchase. The said matter had been decided against the textile undertaking and accordingly, Pound Sterling Rs.0.048 Million lying in the bank account at London had been paid to the claimant pursuant to the Order of the Court. The said amount was written off in the books of the said undertaking by way of debit to the statement of Profit and Loss Account. No provision has been made for the balance decreed amount in view of the fact that the said undertaking was prevented by force majure in fulfilling its part of contract. The Company as successor to the textile undertaking is contesting this matter in Indian Courts and is confident that there would not be any further liability in this regard.
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPT, 2012
Rs. In Millions
|
Sr. |
Particulars |
Quarter ended |
Quarter ended |
Quarter ended Half year ended Half year ended |
|
No. |
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 |
Income From
Operations |
|
|
|
|
|
a) Net Sale/Income From |
10107.400 |
9395.800 |
19503.200 |
|
|
Operations (Net of Excise Duty) |
|
|
|
|
|
b) Other Operating Income |
91.600 |
86.100 |
177.700 |
|
|
Total Income from
operations (Net) (a+b) |
10199.000 |
9481.900 |
19680.900 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of Materials Consumed |
5268.800 |
5035.900 |
10304.700 |
|
|
b) Purchase of Stocks- In Trade |
29.300 |
36.800 |
66.100 |
|
|
c) Change in Inventories of |
(357.700) |
(367.200) |
(725.000) |
|
|
Finished Goods, works -in |
|
|
|
|
|
progress and stock -in- trade |
|
|
|
|
|
d) Employee Benefits Expenses |
652.600 |
597.000 |
1249.600 |
|
|
e) Depreciation and Amortisation Expense |
629.400 |
626.500 |
1255.900 |
|
|
f) Power & Fuel |
1228.000 |
1094.700 |
2322.700 |
|
|
g) Other Expenses |
1348.200 |
1299.600 |
2647.800 |
|
|
Total Expenses (a
to g) |
8798.500 |
8323.300 |
17121.800 |
|
3 |
Profit/(Loss) from
Operations before Other Income .Finance Costs and Exceptional Items (1-2) |
1400.500 |
1158.600 |
2559.100 |
|
4 |
Other Income (Refer Note No. 2) |
7.600 |
66.900 |
74.500 |
|
5 |
Profit/(Loss) from
ordinary activities before Finance cost and Exceptional Items (3+4) |
1408.000 |
1225.500 |
2633.500 |
|
6 |
Finance Cost (Refer Note No. 3) |
438.500 |
476.600 |
915.100 |
|
7 |
Profit/(Loss) from
ordinary activities after Finance Costs but before Exceptional Items (5-6) |
969.500 |
748.900 |
1718.500 |
|
8 |
Exceptional Items |
- |
- |
- |
|
9 |
Profit/(Loss) from ordinary
activities before Tax (7+8) |
969.500 |
748.900 |
1718.500 |
|
10 |
Tax Expense |
270.000 |
200.000 |
470.000 |
|
11 |
Net Profit/ (Loss)
from ordinary activities after Tax (9-10) |
699.500 |
548.900 |
1248.500 |
|
12 |
Extraordinary Items (Net of Expense) |
- |
- |
- |
|
13 |
Net Profit/(Loss)
for the Period (11+12) |
699.500 |
548.900 |
1248.500 |
|
14 |
Paid-up Equity Capital (Face Value Rs. 10/- per share) |
636.500 |
636.500 |
636.500 |
|
15 |
Reserve excluding Revaluation Reserves as per Balance Sheet of previous accounting year |
|
|
|
|
16 |
(i) Earnings Per
Share (before Extraordinary Items) |
|
|
|
|
|
(in Rs.) (not annualized): |
|
|
|
|
|
(a) Basic |
10.99 |
8.62 |
19.61 |
|
|
(b) Diluted |
10.99 |
8.62 |
19.61 |
|
16 |
(ii)Earnings Per
Share (after Extraordinary Items) |
|
|
|
|
|
(in Rs) (not annualized): |
|
|
|
|
|
(a) Basic |
10.99 |
8.62 |
19.61 |
|
|
(b) Diluted |
10.99 |
8.62 |
19.61 |
|
A |
PARTICULARS OF |
|
|
|
|
|
SHARE HOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of Shares |
24,486,561 |
24,818,359 |
24,818,359 |
|
|
- Percentage of Shareholding |
38.47% |
38.99% |
38.99% |
|
2 |
Promoters and
Promoter Group |
|
|
|
|
|
Shareholding |
|
|
|
|
|
(a) Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
- |
- |
- |
|
|
Percentage of Share (as a% of the total Shareholding of promoter and promoter group) |
- |
- |
- |
|
|
Percentage of share (as a% of the total share capital of the company |
- |
- |
- |
|
|
b) Non-encumbered |
|
|
|
|
|
- Number of share |
39,165,318 |
38,833,520 |
38,833,520 |
|
|
Percentage of share (as a% of the total shareholding of promoter and promoter group) |
100% |
100% |
100% |
|
|
Percentage of share (as a% of the total share capital of the company |
61.53% |
61.01% |
61.01% |
|
|
|
|
|
|
|
B |
INVESTORS
COMPLAINTS |
|
|
|
|
|
Pending at the beginning of the quarter |
- |
|
|
|
|
Received during that quarter |
5 |
|
|
|
|
Disposed of during the quarter |
5 |
|
|
|
|
Pending unsolved at the end of the quarter |
- |
|
|
SEGMENTWISE REVENUE RESULTS AND CAPITAL EMPLOYED
Rs. In Millions
|
Sr. |
Particulars |
Quarter ended |
Quarter ended |
Quarter ended Half year ended Half year ended |
|
No. |
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1. |
Segment Revenue |
|
|
|
|
|
Yam |
8928.300 |
8045.000 |
16973.300 |
|
|
Fabric |
3267.300 |
3148.000 |
6415.300 |
|
|
Unallocated |
465.000 |
422.300 |
887.300 |
|
|
Total |
12660.600 |
11615.300 |
24275.900 |
|
|
Less: Inter Segment Revenue |
2553.300 |
2219.500 |
4772.700 |
|
|
Net Sales/Income
from Operations |
10107.400 |
9395.800 |
19503.200 |
|
|
|
|
|
|
|
2. |
Segment Results
[Profit / (Loss before tax and interest from each segment] |
|
|
|
|
|
Yam |
1078.300 |
815.300 |
1893.600 |
|
|
Fabric |
330.200 |
346.600 |
676.800 |
|
|
Unallocated |
76.500 |
71.400 |
147.900 |
|
|
Total |
1485.000 |
123.3.300 |
2718.300 |
|
|
Less: (i) Interest |
438.500 |
476.600 |
915.100 |
|
|
(ii) Net of Un-allocable expend iture/(lncome) |
76.900 |
7.800 |
84.700 |
|
|
Profit after
Interest but before exceptional Items & tax |
969.500 |
748.900 |
1718.500 |
|
|
|
|
|
|
|
3. |
Capital Employed |
|
|
|
|
|
Yam |
24753.800 |
29316.400 |
24753.800 |
|
|
Fabric |
9054.000 |
9247.400 |
9054.000 |
|
|
Unallocated |
9022.100 |
7619.500 |
9022.100 |
|
|
Capital work-in-progress (including capital advances) |
4134.800 |
2987.900 |
4134.800 |
|
|
Total |
46964.700 |
49171.200 |
46964.700 |
STATEMENT OF ASSETS AND LIABILITIES AS ON 30TH SEPT, 2012
Rs. In Millions
|
Particulars |
As at 30.09.2012 (Unaudited) |
|
A EQUITY AND LIABILITIES |
|
|
1 Shareholders' Funds |
|
|
(a) Share Capital |
636.500 |
|
(b) Reserves and Surplus |
20584.200 |
|
(c) Money received against share warrants |
- |
|
Sub-total-Shareholders
funds |
21220.700 |
|
|
|
|
2 Share application money pending allotment |
- |
|
|
|
|
3 Non-current liabilities |
|
|
(a) Long-term borrowings |
20690.900 |
|
(b) Deferred tax liabilities (net) |
2158.500 |
|
(c) Other long-term liabilities |
31.100 |
|
(d) Long-term provisions |
41.100 |
|
Sub-total-Non
Current liabilities |
22921.600 |
|
|
|
|
4 Current liabilities |
|
|
(a) Short-term borrowings |
453.000 |
|
(b) Trade payables |
517.900 |
|
(c) Other current liabilities |
4535.200 |
|
(d) Short-term provisions |
30.900 |
|
Sub-total-Current
Liabilities |
5537.000 |
|
TOTAL -EQUITY AND
LIABILITIES |
49679.300 |
|
|
|
|
B1 Non-current
assets |
|
|
(a) Fixed assets |
24404.000 |
|
(b) Non current investments |
3442.000 |
|
(c) Deferred tax assets (net) |
- |
|
(d) Long-term loans and advances |
940.200 |
|
(e) Other non-current assets |
501.200 |
|
Sub-total-Non
Current Assets |
29287.400 |
|
|
|
|
2 Current assets |
|
|
(a) Current investments |
1469.300 |
|
(b) Inventories |
8816.100 |
|
(c) Trade receivables |
6906.700 |
|
(d) Cash and cash equivalents |
251.900 |
|
(e) Short-term loans and advances |
2759.200 |
|
(f) Other current assets |
188.700 |
|
Sub-total-Current
Assets |
20391.900 |
|
TOTAL -ASSETS |
49679.300 |
NOTES:
1. 1 In view of the significant uncertainties associated with the derivative options (taken for hedging of foreign currency exposure against exports/imports), the ultimate outcome of which depends on future events which are not under the direct control of the company, the resultant gain/loss if any, on such open derivative options cannot be determined at this stage and has accordingly not been accounted for in the books of account.
2. Other Income comprises dividend received from subsidiary company
3. Interest expense is net of interest income from deposits/bonds amounting to Rs 28.900 Millions for the quarter ended 30th Sep 2012 and Rs. 52.900 Millions for the period ended 30th Sep 2012.
4. Figures for previous periods have been recast / regrouped, wherever necessary to make them comparable.
5. The Board of Directors has approved the above results in their meeting held on 06.11.2012 which have been reviewed by the Statutory Auditors in terms of Clause41 of the Listing Agreement.
FIXED ASSETS:
·
·
·
Buildings
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.98 |
|
|
1 |
Rs.88.11 |
|
Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.