MIRA
INFORM REPORT
|
Report Date : |
11.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
SUDARSHAN CHEMICAL INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
162, Wellesley Road, Pune – 411001, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
19.02.1951 |
|
|
|
|
Com. Reg. No.: |
11-008409 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.69.227 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24119N1951PLC008409 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNES06998F NGPS01977D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Inorganic Pigments, Organic Pigments and Dyestuffs,
Intermediates and Pesticides. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 11000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is a part of Rathi Group. It is a well established company
having a good track record. There appears slight dip in profitability of the
company during the current year. However, general financial position of the company is strong.
Performance capacity is high. Liquidity position appears to be good. Trade
relations are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
A (Term Loan) |
|
Rating Explanation |
Having adequate degree of safety regarding timely servicing of
financial obligation. It carry low
credit risk. |
|
|
|
|
Rating |
A1 (Non Fund Based – W.C.) |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of
financial obligation. It carry lowest
credit risk. |
|
Date |
February, 2011 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. M R Bhagwat |
|
Designation : |
General Manager Finance |
|
Contact No.: |
91-20-26058888 |
|
Date : |
14.09.2012 |
LOCATIONS
|
Registered Office/ Global Head Office : |
162, Wellesley Road, Pune – 411001, Maharashtra, India |
|
Tel. No.: |
91-20-26058888 |
|
Fax No.: |
91-20-26058222 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
Factory 1 : |
46, MIDC Estate, Dhatav, Roha – 402116, District Raigad, Maharashtra,
India |
|
|
|
|
Factory 2 : |
Plot No. A – 19/1+2, MIDC Estate, Mahad – 402301, District Raigad,
Maharashtra, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. K. L. Rathi |
|
Designation : |
Executive Chairman |
|
|
|
|
Name : |
Mr. B. S. Mehta |
|
Designation : |
Non – Executive, Independent Director |
|
|
|
|
Name : |
Mr. P. P. Chhabria |
|
Designation : |
Non – Executive, Independent Director |
|
|
|
|
Name : |
Mr. D. N. Damania |
|
Designation : |
Non – Executive, Independent Director |
|
|
|
|
Name : |
Mr. S. N. Inamdar |
|
Designation : |
Non – Executive, Independent Director |
|
|
|
|
Name : |
Mr. S. K. Asher |
|
Designation : |
Non – Executive, Independent Director |
|
|
|
|
Name : |
Mr. P. R. Rathi |
|
Designation : |
Vice Chairman and Managing Director |
|
|
|
|
Name : |
Mr. N. J. Rathi |
|
Designation : |
Non – Executive Director |
|
|
|
|
Name : |
Mr. R. B. Rathi |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. P. S. Raghavan (w. e. f. 16.08.2010) |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3426893 |
49.50 |
|
|
225210 |
3.25 |
|
|
3652103 |
52.76 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
3652103 |
52.76 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
725 |
0.01 |
|
|
770 |
0.01 |
|
|
253848 |
3.67 |
|
|
550 |
0.01 |
|
|
255893 |
3.70 |
|
|
|
|
|
|
219150 |
3.17 |
|
|
|
|
|
|
1511764 |
21.84 |
|
|
694614 |
10.03 |
|
|
589201 |
8.51 |
|
|
2085 |
0.03 |
|
|
29034 |
0.42 |
|
|
558082 |
8.06 |
|
|
3014729 |
43.55 |
|
Total Public
shareholding (B) |
3270622 |
47.24 |
|
Total (A)+(B) |
6922725 |
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 |
6922725 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of Inorganic Pigments, Organic Pigments and Dyestuffs,
Intermediates and Pesticides. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
Bank of Maharashtra, Lokmangal, 1501, Shivaji
Nagar (Head Office), Pune – 411005, Maharashtra, India ·
State Bank of India, Pune, Maharashtra, India ·
Bank of Baroda, Pune Camp Branch, Pune – 411001,
Maharashtra, India ·
ICICI Bank
Limited ·
HDFC Bank Limited |
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Facilities : |
NOTE: 1) Intercorporate Deposits are accepted for period of 3 years, Rate of
Interest varies from 9 - 11% pa. 2) Fixed Deposits are accepted for period of 1-3 years, Rate of
Interest varies from 9 - 11% pa. 3) Short Term Loan Rs. 100,000 Millions (P.Y. NIL ) from State Bank of
India carries interest @ 11% p.a. The Loan is repayable within 90 days from
the date of borrowing. 4) Short Term Loan Rs. 300.000 Millions (P.Y. NIL) from Bank of
Maharashtra carries interest @ 10.60 % p.a. The Loan is repayable within 90
days from the date of borrowing. 5) Buyer’s Credit Loan Rs. 36.466 Millions (P.Y. 16.592 Millions) from
HSBC Bank carries interest @ LIBOR + 235 BASIS POINT % p.a. The Loan is
repayable within 180 days from the date of borrowing. 6) Buyer’s Credit Loan Rs. 55.642 Millions (P.Y. NIL) from CITI Bank
carries interest @ LIBOR + 250 BASIS POINT % p.a. The Loan is repayable
within 180 days from the date of borrowing. 7) Buyer’s Credit Loan Rs. Nil ( P.Y. 110.629 Millions) from Standard
Chartered Bank. |
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|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B. K. Khare and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Subsidiaries : |
·
Prescient Color Limited ·
Sudarshan Europe B. V. ·
Sudarshan North America, Inc. (Subsidiary of
Sudarshan Europe B.V.) |
|
|
|
|
Associates : |
·
Rathi Brothers Poona Limited ·
Rathi Brothers Madras Limited ·
Rathi Brothers Calcutta Limited ·
Rathi Brothers Delhi Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8000000 |
Equity Shares |
Rs.10/- each |
Rs.80.000 Millions |
|
|
|
|
|
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
*6922775 |
Equity Shares |
Rs.10/- each |
Rs.69.228
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6922725 |
Equity Shares |
Rs.10/- each |
Rs.69.227
Millions |
|
|
|
|
|
Note:
* Allotment of 50 Rights
Equity Shares of Rs.10/- each is kept in abeyance, matter being subjudice.
Reconciliation of
the shares outstanding at the beginning and at the end of the year :
|
Particulars |
No. |
Rs. In Millions |
|
At the beginning of the year |
6922725 |
69.227 |
|
Add: Allotted during
the year |
-- |
-- |
|
Less: Shares bought
back during the year |
-- |
-- |
|
Outstanding at the end of the year |
6922725 |
69.227 |
b) Terms/ Rights
attached to equity shares :
The Company has only one class of equity share having a par value of Rs.
10/- per share. Each holder of equity
share is entitled to one vote per share. The Company declares and pays
dividend in Indian Rupees. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General
Meeting.
During the Financial Year ended 31st March 2012, the amount of per share
dividend recognised as distribution to the equity shareholders is Rs. 12.50/-
(Previous Year Rs. 12.50/-) In the event of liquidation of the Company, the
holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the shareholders.
c) Shares held by
holding/ultimate holding company and/or their subsidiaries/associates :
The Company does not have any holding or ultimate holding company.
d) Details of
shareholders holding more than 5% shares in the company :
|
Particulars |
No. |
% |
|
Mr. Pradeep R. Rathi |
382345 |
5.52 |
|
Mr. Rahul P. Rathi |
475454 |
6.87 |
|
Mr. Anuj N. Rathi |
377762 |
5.46 |
|
DIC Corporation, Japan |
557989 |
8.06 |
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 |
69.227 |
69.227 |
69.227 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2632.396 |
2371.457 |
1415.463 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2701.623 |
2440.684 |
1484.690 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1725.692 |
1364.494 |
655.405 |
|
|
2] Unsecured Loans |
559.084 |
470.887 |
408.645 |
|
|
TOTAL BORROWING |
2284.776 |
1835.381 |
1064.050 |
|
|
DEFERRED TAX LIABILITIES |
212.311 |
120.973 |
58.658 |
|
|
|
|
|
|
|
|
TOTAL |
5198.710 |
4397.038 |
2607.398 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2171.475 |
1329.475 |
866.268 |
|
|
Capital work-in-progress |
167.467 |
311.837 |
110.631 |
|
|
|
|
|
|
|
|
INVESTMENT |
251.770 |
218.575 |
205.024 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1569.123
|
1374.554
|
765.154
|
|
|
Sundry Debtors |
1842.773
|
1746.882
|
1267.287
|
|
|
Cash & Bank Balances |
338.335
|
117.998
|
89.741
|
|
|
Other Current Assets |
66.142
|
72.803
|
33.553
|
|
|
Other Non Current Assets |
5.500
|
5.500
|
0.000
|
|
|
Loans & Advances |
778.460
|
529.359
|
308.632
|
|
Total
Current Assets |
4600.333
|
3847.096
|
2464.367
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
948.512 |
656.131 |
477.610 |
|
|
Other Current Liabilities |
850.928
|
477.169
|
393.746
|
|
|
Provisions |
192.895
|
176.645
|
167.536
|
|
Total
Current Liabilities |
1992.335
|
1309.945
|
1038.892
|
|
|
Net Current Assets |
2607.998
|
2537.151
|
1425.475
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5198.710 |
4397.038 |
2607.398 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7442.344 |
7071.156 |
5679.739 |
|
|
|
Other Income |
79.836 |
48.959 |
90.762 |
|
|
|
TOTAL (A) |
7522.180 |
7120.115 |
5770.501 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of Raw Materials |
4042.208 |
3707.309 |
2936.910 |
|
|
|
Purchase of Stock-in-Trade |
284.850 |
267.105 |
1407.753 |
|
|
|
Employee benefit expense |
536.333 |
505.426 |
505.394 |
|
|
|
Other Expenses |
1905.965 |
1745.145 |
0.000 |
|
|
|
Increase/Decrease in Stock |
(133.619) |
(49.222) |
38.972 |
|
|
|
Exceptional Items |
0.000 |
(93.145) |
0.000 |
|
|
|
TOTAL (B) |
6635.737 |
6082.618 |
4889.029 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
886.443 |
1037.497 |
881.472 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
213.109 |
113.420 |
89.493 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
673.334 |
924.077 |
791.979 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
171.485 |
132.144 |
134.053 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
501.849 |
791.933 |
657.926 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
140.339 |
233.817 |
198.832 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
361.510 |
558.116 |
459.094 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
421.730 |
364.188 |
206.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
86.530 |
400.000 |
200.000 |
|
|
|
Dividend |
14.040 |
86.534 |
86.534 |
|
|
|
Tax on Dividend |
200.000 |
14.038 |
14.372 |
|
|
BALANCE CARRIED
TO THE B/S |
482.670 |
421.732 |
364.188 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on F. O. B Basis |
3105.423 |
2090.461 |
1613.247 |
|
|
|
Others |
24.244 |
12.383 |
4.354 |
|
|
TOTAL EARNINGS |
3129.667 |
2102.844 |
1617.601 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1103.185 |
1071.113 |
708.121 |
|
|
|
Stores & Spares |
10.778 |
4.734 |
5.258 |
|
|
|
Capital Goods |
18.987 |
60.907 |
8.249 |
|
|
TOTAL IMPORTS |
1132.950 |
1136.754 |
721.628 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
52.22 |
80.62 |
66.32 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
31.06.2012 |
30.09.2012 |
|
Type |
|
|
1st
Quarter |
2nd
Quarter |
|
|
|
|
(Unaudited) |
(Unaudited) |
|
Net Sales |
|
|
1999.750 |
1950.030 |
|
Total Expenditure |
|
|
1738.610 |
1801.960 |
|
PBIDT (Excl
OI) |
|
|
261.140 |
148.070 |
|
Other Income |
|
|
20.360 |
10.280 |
|
Operating
Profit |
|
|
281.500 |
158.350 |
|
Interest |
|
|
69.410 |
73.040 |
|
Exceptional
Items |
|
|
0.000 |
0.000 |
|
PBDT |
|
|
212.090 |
85.310 |
|
Depreciation |
|
|
59.650 |
60.170 |
|
Profit
Before Tax |
|
|
152.440 |
25.140 |
|
Tax |
|
|
42.130 |
1.610 |
|
Provisions and contingencies |
|
|
0.000 |
0.000 |
|
Profit After Tax |
|
|
110.310 |
23.530 |
|
Extraordinary Items |
|
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
0.000 |
|
Other Adjustments |
|
|
0.000 |
0.000 |
|
Net Profit |
|
|
110.310 |
236.530 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.81
|
7.84
|
8.08
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.74
|
11.24
|
11.58
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.41
|
15.52
|
19.75
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.32
|
0.44
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.58
|
1.28
|
1.42
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.31
|
3.19
|
2.37
|
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 |
No |
|
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 |
No |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
(a) Excise Duty – Rs. 4.560 Millions (Previous Year Rs. 2.010 Millions)
(b) Corporate Guarantee issued on behalf of the wholly owned subsidiary
company Prescient Color Limited –
Rs. 122.500 Millions (Previous Year Rs.122.500 Millions)
(c) Corporate Guarantee issued on behalf of Sudarshan North America,
Inc., wholly owned subsidiary company of
Sudarshan Europe B.V. – 1.50 million USD (Previous Year Rs. Nil/-)
(d) Income Tax – Rs. 28.862 Millions (Previous Year Rs. 28.862 Millions)
BACKGROUND :
The domestic business environment was challenging. Slowdown in
demand coupled with high inflation led to higher input costs affecting growth
and profitability. The global Pigment market continued to be under pressure
resulting in a slump in demand which led to a reduction in exports and profits.
Given the challenging economic conditions, the results achieved for
the year ended 31st March, 2012 are considered satisfactory.
(A) SALES :
Gross Revenue for the year ended 31st March, 2012
amounted to Rs. 7522.000 millions as against Rs. 7120.000 millions achieved
during the previous year. Profit after tax for the year ended 31st
March,
2012 was Rs. 361.000 millions as against Rs. 558.000 millions earned during the
previous year. Profitability was under pressure on account of higher interests
costs owing to the ongoing capital expenditure programme and on account of
rising input costs, part of which had to be absorbed by the Company.
Pigment sales rose from Rs. 6237.000 millions in the previous year to
Rs. 6647.000 millions in the year. Profits from the Pigment Division for the
year amounted to Rs. 869.000 millions as compared to Rs. 950.000 millions of
the previous year.
Agro Sales for the year ended 31st March, 2012
amounted to Rs. 795.000 millions as against Rs. 834.000 millions achieved
during the previous year. Profits from the Agro Division for the year under
review amounted to Rs. 34.580 millions as compared to Rs. 64.000 millions of
the previous year.
(B) EXPORTS :
The Company’s subsidiaries in The Netherlands and North America
continue to make aggressive efforts to tap new markets and key customers. The
Company has also recently set up a Representative Office in China to tap
new markets in the Asia Pacific region and also provide better
service to key customers.
Members are aware that the Company has acquired from Eckart, GmbH
and its Affiliates the natural mica based pearlescent business for cosmetics
sold under the brand “Prestige” and “Flonac C” giving a boost to the cosmetic
products portfolio.
All these measures are expected to give a fillip to the Company’s
efforts to further consolidate its position in the export market.
Revenue from exports for the year ended 31st
March,
2012 amounted to Rs. 2746.000 millions as against Rs. 26670.000 millions for
the previous year registering a marginal growth.
SUBSIDIARY
COMPANIES :
During the year, the Company’s overseas subsidiaries have shown an
improved performance in sales. With continued focus on staffing, building an
efficient sales and distribution network and tapping key customers, the
subsidiaries are expected to record better performance.
The other Wholly Owned Indian Subsidiary, Prescient Color Limited, has
recorded improved financial performance with good growth in Sales and Profit.
The present scenario looks encouraging with indications of Prescient Color
Limited recording a better performance in the current year.
OUTLOOK FOR THE
FUTURE :
The domestic demand for Pigments continues to be sluggish and the rising
input costs on account of inflationary conditions, coupled with the adverse
foreign currency situation does not augur well for the Company. The Pigment
export market even though still reeling under sluggish demand prevailing in the
US and European markets looks promising as the Company’s overseas subsidiaries
and the China Representative Office are fully geared up to overcome the market
complexities by tapping into new markets.
Barring any unforeseen circumstances, the current year’s prospects look
good.
MANAGEMENT DISCUSSION
AND ANALYSIS
Business Overview
The Economic downturn which affected developed economies has not shown
any significant signs of improvement. The Business environment continues to be extremely
challenging on account of a slump in demand, fall in industrial production and
above all the Euro debt crisis which seems to engulf the whole of the European
Union with its cascading effect, threatening to derail other developed
economies. The Indian economy continues to battle rising input costs, adverse
foreign exchange situation, tight credit conditions and a slump in demand, all
of which have had a negative impact on growth.
Financial and
Operational Performance
The Company, in the background of difficult market conditions, both
international and domestic, could only post marginal improvement in Sales.
Profits were also under pressure on account of rising input costs, primarily on
account of the rise in crude oil prices, increase in interest costs on account
of ongoing capital expenditure and other operating costs. Of the total sales
revenue of Rs. 7522 Million achieved during the year, 36% is contributed by
exports of Pigments.
During the year the Company has acquired from Eckart GmbH and its
Affiliates its natural mica based pearlescent pigment business for cosmetics
and personal care, related to the trademarks “Prestige” and “Flonac C”. This
will give a boost to the cosmetic products portfolio.
The Company’s overseas subsidiaries viz. Sudarshan Europe B.V.,
Sudarshan North America, Inc. and the Indian subsidiary, Prescient Color
Limited have posted improved results in the year under review, as can be seen
from the Company’s consolidated financial results. The Company has also opened
a Representative Office in China to further its interests in the Asia Pacific
region.
The certification of ISO 9001 and ISO 14001 and OHSAS –ISO 18001 from
BVQI is a testimony to the Company’s commitment towards quality, safety and
sustainable environment friendly approach. The Roha and Mahad factories of the
Company have received the British Five Star Rating which acknowledges the
efforts taken by the Company to achieve operational excellence in Environment,
Health and Safety. The Company has also well established R and D laboratories
recognized by the Department of Scientific and Industrial Research (DSIR). Also
our Labs are ISO 17025:2001 certified by National Accreditation Board for
Testing and Calibration Laboratories (NABL), Government of India. The Ministry
of Science and Technology, New Delhi, acting on behalf of Government of India
has recognised the Company’s in house R and D Units at Roha, Dist. Raigad and
Ambadvet, Amralevadi, Tal. Mulshi, Dist. Pune for a further period of 4 years
i.e. upto 31st March, 2016.
Business of the Company
The Company is a globally renowned player in the Pigment Industry and
manufactures a wide range of Organic and Inorganic Pigments, Effect Pigments,
Agro Chemicals and other products with facilities at Roha and Mahad, Dist. Raigad,
Maharashtra. The Company has also set up an ultra modern R and D Facility at
Ambedvet, Amralevadi, Dist. Pune, India.
As the largest producer of pigments in India, Sudarshan manufactures an
extensive range of Organic, Inorganic and Pearlescent pigments and dispersions
catering to the Coatings, Plastics, Inks and Cosmetics Industries worldwide.
The product offerings of Sudarshan’s recognized brands include SudapermR
, SudafastR, SudacolorR, SumicaR and SumicosR.
Sudarshan’s development focus is on high performance pigments mainly for
automotive coatings and engineering plastics that are produced in state of the
art manufacturing facilities.
Segmental overview
In accordance with Accounting standard -17, the Company has two
reportable business segments, Pigments and Agro Chemicals. The Pigment business
of the Company mainly comprises of manufacturing of High Performance Pigments
and Commodity Pigments apart from customized pigments for niche segments
catering to domestic and international customers and also Effect Pigments for
cosmetics, coating applications etc.
The Agro Chemical business of the Company consists primarily of products
which are generic.
Segment I
–Pigments
1.
Industry Structure
and Developments
The Pigment Industry worldwide is one of the dominant industries with
collective revenues of over a USD 5 billion.
The growth of the Pigment Industry has more or less moved in tandem with
the growth of Global economy. Growth in per capita income leading to growth in
per capita spending fuels demand for pigments ranging from paints to plastics
to polymers, inks to cosmetics and more, encompassing every sphere of life.
The Company is one of the largest domestic manufacturers of Pigments in
India with a 30% market share. The Pigment Division manufactures a wide range
of Organic, Inorganic and Effect Pigments catering to domestic and export
markets, mainly Paint, Inks, Plastics, Cosmetics, Fashion Accessories and
Automobiles as the user industries.
The Company’s pigments are exported to most of the discerning markets in
Europe, America and Asia. The manufacturing activity is carried out at the Roha
and Mahad factories backed by R and D facilities at Sutarwadi, Pune.
There is an excess capacity for the manufacture of commodity pigments
worldwide. This results in intense price competition in the commodity segments
market. The China factor also continues to affect the Pigment industry.
2.
Opportunities and
Threats
There exist opportunities for growth in the Pigment Industry considering
the low per capita income spending as compared to the developed economies. The
Indian Paint industry in particular has undergone sophistication in the last
couple of years in terms of high-end product range and technological competence.
This along with growing domestic housing needs holds promise for varied Pigment
applications. Automotive paints and Personal care segment and increasing
disposable income of a growing middle class provides opportunity for growth.
Inks and
Plastics market also holds lot of promise as the Paper and Printing
Industry is poised to record growth.
Pigment manufacturers in the developed countries, owing to high
manufacturing costs and stringent environment control regulations, are shifting
their manufacturing bases to developing countries. This provides an opportunity
to Indian manufacturers to get exposed to world class manufacturing practices.
The Pigment Industry has to address the issues of REACH Compliance as
also issues relating to clean and green environment, apart from the competitive
pressure from the China and other developed markets.
Escalation of crude oil prices responsible for the rise and fall of
price of inputs and the depreciation of the Rupee vis a vis the US Dollar is a
matter of concern and needs to be tackled if the Indian Pigment Industry has to
remain competitive. Another matter of concern is the gestation period involved
in evaluation and acceptability of the Company’s products by overseas
customers, and the costs associated with it.
3.
Performance
The Pigment Division increased its sales in the year 2011 - 12 to Rs.
6647.000 millions from Rs. 6237.000 millions in 2010-11, recording an increase
of 7% over the previous year. Sales from exports for the year amounted to Rs.
2746.000 millions as against Rs. 2667.000 millions achieved during the previous
year.
4.
Outlook
The Indian Pigment Industry has evolved from a basic Pigment producer to
that of a knowledge intensive industry catering to the requirement of colorants
for all segments. The domestic demand for Pigments offers an opportunity to the
Company to improve its market share. Many new High Performance and effect
pigments are also being launched for the cosmetic and coating markets. The
Company’s strategy of setting up sales offices to cater to European and North
American Customers and a Representative Office in China is expected to give an
impetus to Pigment exports as the Company is better equipped to understand and
comply with customer preferences.
As a result of the slow-down in western markets, end consumers of
Pigment Products are on the look-out for alternative suppliers to meet their
varied requirements. Sudarshan with a wide range of High Performance Pigments
and Effect Pigments is ideally placed to meet their requirements.
As a consequence of all these actions, the Company expects better
results during the current year.
Segment II – Agro
Chemicals
1.
Industry
Development
Unseasonal rains and unfavourable monsoon in some parts of the country
continued to affect the prospects of the
Indian Agro Chemical Industry, impacting the consumption of Agro
Chemicals. The industry has also seen a change in the Product mix due to change
in the crop pattern. The average per hectare consumption of agrochemicals in
India is comparatively lower than the consumption in USA, JAPAN and other
developed countries. This augurs well for the Agro Chemical Industry. Rapid
growth in acreage of Bt Cotton hybrids resulting in improvement in yield of
cotton crops is opening new opportunities for higher consumption of pesticides
for the control of sucking pests and plant growth nutrients.
India being a tropical country, the consumption pattern of pesticides is
tilted towards insecticides, which account for around 58-60% of the crop protection
chemical market. It is followed by herbicides and fungicides at 20% and 18%
respectively.
The Crop Protection Industry witnessed growing uncertainties due to
variations in the monsoon spread in some parts of the country, fluctuation in
end product prices due to variable raw material costs and unavailability of key
raw materials from China. The Industry also witnessed a further slide in the
demand for conventional products.
2.
Opportunities and
threats
Rising costs and uncertainty in availability of some key raw materials
continue to be a challenge. The exchange rate fluctuations also impact the raw
material prices. Genetically modified seeds which have more self-immunity from
natural adversaries pose a threat to the Agro Chemical business.
The Indian agrochemical industry has potential for growth considering
the cost advantage as compared to that prevailing in developed countries. Also
the usage of Insecticides in India on acreage basis, as compared to developed
countries, is comparatively low. The need of the Industry is to invest in new
Products considering the change in crop pattern and pest formation. However,
the costs associated with development and introduction of new molecules are a
deterrent to domestic agro-chemical companies with a low technology base and
limited area of operations.
The number of pesticides imported from China is increasing and those
products are mainly a substitute for conventional products.
3.
Performance
During the year, the agro division achieved a turnover of Rs. 795 million
as against Rs. 8340.000 millions in the previous year. The Company expects to
improve its performance by concentrating on the sale of Technical and Bulk
pesticides.
The Agro Chemical industry is, more than ever, subject to the vagaries
of the monsoon which can impact the sale of Agrochemicals. The Company is
mainly into the generic segment which faces cut-throat competition from other
unorganized and organized players in the Agro Chemical Industry. This may lead
to stagnation in revenues and the bottom line.
4.
Outlook
Notwithstanding availability constraints of key raw materials and some
difficult market conditions, the current year should end on a positive note.
FIXED ASSETS
- Freehold Land
- Leasehold
Land
- Buildings
- Plant and
Machinery
- Vehicles
- Furniture and
Fixtures
- Office
Equipments
WEBSITE DETAILS
BOARD OF DIRECTORS
Shri. K. L. Rathi
(Executive Chairman of the Board)
Shri. K. L. Rathi is Executive Chairman of the Board of Subject. He B.Sc,
B.Sc.(Technical) and M.A.( Chem) from Columbia University, USA and has been
associated with the Company for more than four decades. Mr. K.L.Rathi is also
the Chairman of Roha Manufacturers Association.
Shri. P.R. Rathi
(Executive Vice Chairman of the Board, Managing Director)
Shri. P.R. Rathi is Executive Vice Chairman of the Board, Managing
Director of Subject. He is M.S. in Chemical Engineering from MIT, USA and
M.B.A. from Columbia University, USA and has been associated with the Company
for more than three decades.
Mr. Sanjay K.
Asher (Non-Executive Independent Director)
Mr. Sanjay K. Asher is Non-Executive Independent Director of Subject. He
is a Fellow member of the Institute of Chartered accountants of India and
Commerce and Law graduate from the Bombay University. Mr. Sanjay Asher is
senior partner in M/s Crawford Bayley and Company and is also on the Board of
several other Companies.
Mr. P. P. Chhabria
(Non-Executive Independent Director)
Mr. P. P. Chhabria is Non-Executive Independent Director of Subject. He
is B.Sc in International Business from University of Evansville USA and has
completed Advanced Management Programme from Wharton Business School. Mr.
P.P.Chhabria is Co-Promoter of Finolex Group of Industries. Mr. P.P.Chhabria is
also a Board Member of several other Companies.
Mr. D.N. Damania
(Non-Executive Independent Director)
Mr. D.N. Damania is Non-Executive Independent Director of Subject. He is
B.E. Mechanical Engineering from Pune University and a renowned technocrat. Mr.
D.N.Damania is also on the Board of several other Companies.
Shri. Srikrishna
N. Inamdar (Non-Executive Independent Director)
Shri. Srikrishna N. Inamdar is Non-Executive Independent Director of
Subject. He is an Advocate. He serves as Director of Kulkarni Power Tools
Limited, Finolex Industries Limited, Kirloskar Brothers Limited, Kirloskar
Ferrous Industries Limited, Force Motors Limited, Ugar Sugar Works Limited,
Kirloskar Proprietary Limited, Sakal Papers Limited, Man Force Trucks Private
Limited, Finolex Infrastructure Limited.
Mr. B.S. Mehta
(Non-Executive Independent Director)
Mr. B.S. Mehta is Non-Executive Independent Director of Subject. He is a
Fellow Member of the Institute of Chartered Accountants of India. Mr. B.S.Mehta
is Senior Partner of M/s. Bansi S. Mehta and Company, a firm of Chartered
Accountants. Mr. B.S.Mehta is also on the Board of several other Companies.
Shri. Rajesh B.
Rathi (Executive Director)
Shri. Rajesh B. Rathi is Executive Director of Subject. Mr. Rathi is B.E.Mechanical
Engineering from MIT, Pune, B.S.Chemical Engineering from Ohio State
University, USA and MBA from Pittsburgh University, USA. Mr. Rathi joined the
services of the Company on October 1, 1992 and has got about 16 years
experience of working in different capacities relating to Pigment
manufacturing, marketing etc. He serves as Director of Rathi Brothers Poona
Limited, Rathi Brothers Calcutta Limited, Rathi Brothers Madras Limited, Rathi
Brothers Delhi Limited, Prescient Color Limited, Rathi Brothers Private
Limited, Balkrishna Rathi Finance Private Limited, Sudarshan Europe B.V.
Shri. N. J. Rathi
(Non-Executive Director)
Shri. N. J. Rathi is Non-Executive Director of Subject. He is M.Com from
University of Pune and M.B.A. from USA. Mr. N.J.Rathi has been associated with
the Company for more than four decades.
PRESS RELEASES
SAP ACE AWARD FOR
CUSTOMER EXCELLENCE, 2012.
SATURDAY,
OCTOBER 20, 2012
Sudarshan Chemical Industries Limited, won the SAP ACE Award for Customer Excellence, 2012 in the category of "Best Run Award in Supply Chain (Warehouse Management System)".
SAP ACE awards are an industry benchmark to recognize the best of best-run businesses in the Indian subcontinent.
Sudarshan emerged as winner amongst the 330+ nominations in recognition of the project, that lead in improving key processes through clean IT implementation.
The award signifies Sudarshan's position as the Best SAP Implementer in the business of chemical, setting global benchmarks in excellence by deploying innovative solutions.
SUDARSHAN ANNOUNCES 5 STAR SAFETY RANKING FROM BRITISH SAFETY COUNCIL
MONDAY, JUNE 25, 2012
The British Safety Council has awarded
Sudarshan, India's leading pigment manufacturer, its highest 5 Star rating for
Health and Safety Management Systems at both its pigment manufacturing
facilities in Roha and Mahad, India.
Mr. Rajesh Rathi, Head of Sudarshan's Pigment
Division comments "The safety of Sudarshan's employees and manufacturing
processes will never be compromised. We are proud to get international
recognition for the way we operate. Many companies assess their performance by
solely financial means – but as a major pigment manufacturer, we understand the
value of protecting and caring for our employees and local communities."
About Sudarshan:
As the largest producer of pigments in India,
Sudarshan manufactures an extensive range of Organic, Inorganic and Pearlescent
pigments and dispersions catering to the Coatings, Plastics and Inks Industries
worldwide. The product offerings of Sudarshan's recognized brands include
SudapermR, SudafastR, SudacolorR, SumicaR and SumicosR. Sudarshan's development
focus is on high performance pigments mainly for automotive coatings and
engineering plastics that are produced in state of the art manufacturing
facilities.
Sudarshan has expanded into global markets
since 2008 with wholly-owned subsidiaries in North America and Europe, and is
preparing to open sales offices in Asia Pacific and Latin America.
Sudarshan Chemicals is a significant part of
Pune-based Rathi Group, and a public limited company listed on the Mumbai stock
exchange.
CRISIL assigns
fundamental grade 4/5 to Sudarshan Chemical Industries
India, June 08 -- Rating agency, CRISIL Equities has assigned a CRISIL IER fundamental grade of 4/5 to Sudarshan Chemical Industries. The grade indicates that the company's fundamentals are superior relative to other listed equity securities in India. The rating agency has also assigned a valuation grade of 3/5 to the company. The assigned fundamental grade takes into account the company's position as one of India's leading pigment manufacturers, offering a wide range of products, as well as its increasing focus on value-added products like effect and high performance pigments, which offer better margins.Sudarshan Chemical is engaged in the production of organic and inorganic pigments and intermediates and diversified into the production of Agrochemicals. It is a part of the Rathi group of companies and contributes about 70% to the total sales revenue of the Group. The company is divided into three Strategic Business Groups namely, Pigments, Effect Pigments and Agrochemicals with manufacturing facilities at Roha and Mahad in Maharashtra.
INDIA'S SUDARSHAN
CHEM. TO INVEST US$22 MLN TO UPGRADE FACILITY
NEW
DELHI, April 7 Asia Pulse - India'sSudarshan Chemical Industries (BSE: 506655)
on Tuesday said it would invest Rs.1000.000 Millions (US$22.6 million) in
upgrading its manufacturing facility at Roha in Pune.
The
key developments include a warehouse, high performance pigment plants,
pearlescent and congregation plants and an ultra-modern employee facility, a
company release said.
The facilities will be
inaugurated at a function at Roha on April 9 by Agriculture Minister Sharad
Pawar and Deputy Chief Minister of Maharashtra Ajit Pawar, it said.
Sudarshan Chemical
Industries Limited is a flagship company of Pune - based Rathi Groups of
Companies.
It
manufactures an extensive range of chemical, inorganic and pearlescent pigments
and dispersions catering to the coatings, plastics, inks, cosmetics, textiles
and construction industries worldwide.
"The
current expansion at Roha is part of a phase-wise strategy to become the fourth
largest global pigment company by the end of 2014 with a focus on high
performance pigments for the coatings, plastics and specialty ink
markets," Rajesh B Rathi, Director, Head Pigment operations, said.
SUDARSHAN CHEMICAL
INDUSTRIES LIMITED RECEIVES PATENT FOR AN IMPROVED PROCESS FOR PREPARATION OF
TRIAZOPHOS
New
Delhi, November 7 -- Sudarshan Chemical Industries Limited received Patent for
an improved process for preparation of triazophos on October 3, 2008. The
patent number issued by the Indian Patent Office is 220854.
Sudarshan
Chemical Industries Limited had filed patent application number 643/MUM/2004
for an improved process for preparation of triazophos on June 14, 2004. The
inventors of the patent are Patil Sanjay Sambhaji, Savrkar Ajit Murgyappa,
Bakale Chandrashekihar Shivaji, Kokitkar Vishnu Bhairu, Mhaiskar Sharad Gopal,
Singh Mahendra Pratap and Koul Veerinder Kumar.
According
to the Controller General of Patents, Designs and Trade Marks, "The
present invetion reletes to a process of manufacturing triazophos using phase
transfer catalyst in hich yieild and purity. The process comprising sbstituted
1-phenyl 3-hydroxy-1, 2, 4-triazole with 0, 0-diethylthiophosphoryl chloride in
the presence of acide scavengers such as tertiary amines, inorganic bases and
hydroxides of potassium ad sodium, carbonates of sodium and 0.2% to 2.0% phase
transfer catalyst such as tetra-butyl ammonium bromid, triethylbenzylammonium
chloride or triethylenediamine at temperature between 20-45 c in suitable
solvents such as water then cooling the reaction mixture to 25-30 c, separating
out the aqueous layer and the organic layer so formed, extracting aqueous layer
with 300 grams of solvents such as xylene, monochlorobenzen, dmf, toluene
methylene dichloride, ehthylene dichloride and water for complete recovey ofo
triazophos; adding this wxtracts to the organic layer, washing the organic
layer with suitable solvents and recvering triazophos of at least 92%
purity.arrying out this step at the ambient temperature of 20-45C more
particularly 20-30C and atmospheric pressure."
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.54.63 |
|
|
1 |
Rs.87.50 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Information
Gathered by : |
SBA |
|
|
|
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.