MIRA INFORM REPORT

 

 

Report Date :

07.06.2013

 

IDENTIFICATION DETAILS

 

Name :

WELSPUN SYNTEX LIMITED

 

 

Registered Office :

Survey No.394(P), Saily, Silvassa, Union Territory of  Dadra and Nagar Haveli, Daman and Diu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

31.03.1983

 

 

Com. Reg. No.:

56-000045

 

 

Capital Investment / Paid-up Capital :

Rs. 339.147 Millions

 

 

CIN No.:

[Company Identification No.]

L99999DN1983PLC000045

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

SRTW00080D

MUMW02090E

MUMM25361A

 

 

PAN No.:

[Permanent Account No.]

AAACW0489L

 

 

 

Legal Form :

Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Exporter of Polyester Texturised Filament Yarn, Nylon Filament Yarn.

 

 

No. of Employees :

Information Denied by Management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (49)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 3150000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of “Welspun Group” It is an established company having a satisfactory track record.

 

There appears an increase in the sales turnover during 2012.

 

Trade relations are fair. Business is active Payment terms are reported as usually correct.

 

In view of experienced promoters and support from reputed parent company, the company can be considered for business dealings with some caution.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Bank Facilities : BBB

Rating Explanation

Moderate degree of safety and carry moderate credit risk.

Date

06.02.2013

 

Rating Agency Name

CARE

Rating

Short term Bank Facilities : A3+

Rating Explanation

Moderate degree of safety and high credit risk.

Date

06.02.2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION DENIED

 

MANAGEMENT NON – CORPORATIVE

 

Contact No.:

91-260-2640596

Date :

05.06.2013

 

 

LOCATIONS

 

Registered Office/ Factory 1 :

Survey No.394(P), Saily, Silvassa, Union Territory of  Dadra and Nagar Haveli, Daman and Diu, India

Tel. No.:

91-260-2640596/ 2640599

Fax No.:

91-260-2640597

E-Mail :

welspun@vsnl.com

kaushik_kapasi@welspun.com

Website :

http://www.welspunsyntex.com

 

 

Corporate Office  :

9th Floor, Trade World, “B” Wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India

Tel No.:

91-22-24908000/ 01/ 02/ 03 /04/ 66136000

Fax No.:

91-22-24908020/ 21

E-Mail :

welspun@bom5.vsnl.net.in

nilesh_javkar@welspun.com

Website :

http://www.welspunsyntex.com

 

 

Factory 2 :

Palghar Plant:

Plot No.14/15, Dewan Industrial Estate, Palghar, District Thane, Maharashtra, India

Tel. No.:

91-952525-252772/ 252662

Fax No.:

91-952525-250749

 

 

Marketing Office :

3001/3002, 3rd Floor, Jash Tex and Yarn Market, 1-Ring Road, Surat - 395 002, Gujarat, India

Tel. No.:

91-261-2327863/ 2336125

Fax No.:

91-261-2312604

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. B.K. Goenka

Designation :

Chairman

 

 

Name :

Mr. R.R. Mandawewala

Designation :

Director

 

 

Name :

Mr. B.A. Kale

Designation :

Executive Director (with effect from 30.10.2010)

 

 

Name :

Mr. Atul Desai

Designation :

Director

 

 

Name :

Mr. Raj Kumar Jain

Designation :

Director

 

 

Name :

Mr. M.K. Tandon

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Nilesh Javker

Designation :

Assistant Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on  : 31.03.2013

 

Category of Shareholders

No. of Shares

Percentage of holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Bodies Corporate

35,429

0.09

Sub Total

25,658,093

65.39

(2) Foreign

25,693,522

65.48

Total shareholding of Promoter and Promoter Group (A)

25,693,522

65.48

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

105

0.00

Financial Institutions / Banks

8,231,936

20.98

Insurance Companies

228,837

0.58

    Any Others (Specify)

0

0.00

Sub Total

8,460,878

21.56

(2) Non-Institutions

 

 

Bodies Corporate

606,658

1.55

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

2,841,401

7.24

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

1,174,208

2.99

Any Others (Specify)

462,901

1.18

Non Resident Indians

214,560

0.55

Clearing Members

46,177

0.12

Trusta

4,302

0.01

Hindu Undivided Families

197,862

0.50

Sub Total

5,085,168

12.96

Total Public shareholding (B)

13,546,046

34.52

Total (A)+(B)

39,239,568

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0

(1) Promoter and Promoter Group

0

0

(2) Public

0

0

Sub Total

0

0

Total (A)+(B)+(C)

39,239,568

0.00

 

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

 

Names of Shareholders

No. of Shares

Percentage of holding

Welspun India Limited

2,83,500

0.72

Welspun Finance Limited

1,37,191

0.35

Krishiraj Trading Limited

1,95,25,663

49.76

Welspun Fintrade Private Limited

40,18,359

10.24

Welspun Steel Limited

25

0.00

Welspun Zucchi Textiles Limited

25

0.00

B K Goenka HUF

15,428

0.04

B K Goenka

3,405

0.01

Deepali B Goenka

11,571

0.03

Radhika Goenka

5,025

0.01

Welspun Mercantile Limited

16,93,330

4.32

Total

2,56,93,522

65.48

 

The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

 

Names of Shareholders

No. of Shares

Percentage of holding

IFCI Limited

7741599

19.73

Total

7741599

19.73

 

 

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

 

Names of Shareholders

No. of Shares

Percentage of holding

IFCI Limited

7741599

19.73

Total

7741599

19.73

 

 

Details of Locked-in Shares

 

Names of Shareholders

No. of Shares

Percentage of holding

Krishiraj Trading Limited

1,92,35,645

49.02

Welspun Mercantile Limited

7,89,473

2.01

Total

2,00,25,118

51.03

 

Details of Depository Receipts (DRs)

Names of Shareholders

No. of Shares

Percentage of holding

Nil

0.000

0.00

 

Holding of Depository Receipts (DRs), where underlying shares held by 'promoter / promoter group' are in excess of 1% of the total number of shares.

 

 

Names of Shareholders

No. of Shares

Percentage of holding

Nil

0.000

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Polyester Texturised Filament Yarn, Nylon Filament Yarn.

 

 

Products :

·            Polyester Partially Oriented Yarn (Poy)

·            Polyester Fully Drawn Yarns (Fdy)

·            Polyester Mono Filament Yarns (Pmfy)

·            Polyester Filament Yarn (Pfy)

·            Polyester Draw Texturised Yarn ( Dty/Pty)

·            Air Textured Yarns (Paty)

·            Speciality Polyester Filament Yarns (Spfy)

·            Nylon Yarns

 

Product Description

ITC Code

Synthetic Yarns

5402

 

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

(i) Licensed Capacity: Not applicable

 

(ii) Installed Capacity (as certified by the management)

 

Particulars

Unit

Installed Capacity

Polyester Yarns

(Texturised, Twisted and Dyed) and POY

 

 

a) POY/FDY

M.T.

32500

b) Dyeing Plant

M.T.

13200

c) Texturising Machines

Nos.

29

d) Air Tex

Nos.

6

e) Draw Twisting Machine

Nos.

1

f) TFO Twisting Machine

Nos.

33

 

Particulars

Unit

Production**

Dyed / Text and Twisted Polyester Yarn

MT

31811.91*

POY***

MT

23444.02

 

Note:

1. Includes 448.69 M.T. issued for internal consumption

2. Production does not include 397.95 M.T. job work done for others

3. Includes 14386.27 M.T. issued for internal consumption.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information Denied by Management.

 

 

Bankers :

·         Bank of Baroda,

·         State Bank of Bikaner and Jaipur

·         IDBI Bank Limited

·         Central Bank of India

·         State bank of India

 

 

Facilities :

Rs in Millions

SECURED LOAN

 

31.03.2012

31.03.2011

Debentures

 

 

Redeemable Non-Convertible Debentures

0.000

3.625

Term Loans from Banks

 

 

-- Rupee Loans

434.619

164.163

-- Foreign Currency Loans

64.824

115.647

Working Capital Loans from Banks

 

 

-- Foreign Currency Loans

43.651

38.262

-- Rupee Loans

168.891

293.578

Foreign Currency Loans – Buyers Credit

183.877

0.000

Total

895.862

615.275

 

NOTES :

 

 (a) Debentures

i)   9% Secured Non-Convertible Redeemable Debentures (NCD) of ‘ Nil (‘ 4.680 Millions) were redeemable at par in 28 equal quarterly installments commencing from April 1 2006 and ending on 1 January 2013 have been fully redeemed during the year.

 

ii)    9% Secured Non-Convertible Redeemable Debentures (NCD) of Rs. Nil (Rs.  3.865 Millions) were redeemable at par in 28 equal quarterly installments commencing from April 1 2006 and ending on 1 January 2013 have been fully redeemed during the year.

 

iii)  The above debentures including interest thereon are secured by way of first charge on movable and immovable assets of the Company, both present and future, ranking pari passu subject to prior charge on specific assets for certain term loans and on current assets as per Note 7(a) below for borrowing from banks for working capital finance.

 

(b) Term loan from Banks except (f) and (h) below, are secured by way of first charge on immovable and movable assets of the company, both present and future, ranking pari passu and also secured by second charge on current assets subject to prior charge in favour of banks for working capital facilites.

 

(c) Term loan of Rs. 30.919 Millions (Rs. 42.766 Millions) from Bank of Baroda is carring interest @ 13.75% p.a. and repayable in 7 quarterly installments of Rs. 4.334 Millions and balance in last installment.

 

(d) Term loan of Rs. 18.067 Millions (Rs. 26.067 Millions) from State Bank of Bikaner and Jaipur is carring interest @ 14.25% p.a. and repayable in 6 quarterly installments of Rs. 2.600 Millions and balance in last installment.

 

(e) Term loan of Rs. 213.862 Millions (Rs. 80.302 Millions) from State Bank of Bikaner and Jaipur is carring interest @ 13.75 % p.a.and repayable in 4 quarterly installments of Rs. 0.548 Million in 2012-13 and thereafter in 24 quarterly installments ranging from 2% to 5.625% of disbursed loan amount.

 

(f) Term loan of Rs. 250.000 Millions (Rs. Nil) from State Bank of Bikaner and Jaipur is secured by first charge ranking pari passu by way of hypothecation of company.s raw material, stock-in-process, finished goods, semi finished goods, stores, spares, book debts and other current assets and second charge ranking pari passu on fixed assets of the company. It carries interest @ 13.50 % p.a. and repayable in 8 quarterly equal installments of Rs. 31.250 Millions commencing from December 2012.

(g) Term loan of Rs. 3.100 Millions (Rs. 43.800 Millions) from State Bank of India is carring interest @ 14.50 % p.a. and repayable in 4 quarterly installments of Rs. 4.200 Millions in 2012-13, 2 quarterly installments of Rs. 5.500 Millions and balance of Rs. 3.200 Millions being the last installment in 2013-14.

 

(h) Term Loan of Rs. Nil (Rs. 2.292 Millions) from Industrial Development Bank of India was secured by way of a charge on all machinery purchased out of the equipment finance scheme.

 

(i) Term Loan of Rs. Nil (Rs. 7.677 Millions) from Industrial Development Bank of India carried interest @ 9.92% p.a. and is repaid

during the year.

 

(j) Term Loan of Rs. Nil (Rs. 2.074 Millions) from Industrial Development Bank of India carried interest @ 12.37% p.a. and is repaid during the year.

 

(k) Term Loan of Rs. Nil (Rs. 26.250 Millions) from Industrial Development Bank of India carried interest @ 14.00% p.a. and is repaid during the year.

 

(l) Term loan of Rs. 18.316 Millions (Rs. 47.728 Millions) from State Bank of India is carring interest @ JPY TIBOR+2% and last installment is repayable on 15 June 2012.

 

(m) Term loan of Rs. 6.031 Millions (Rs. 24.706 Millions) from State Bank of Bikaner and Jaipur is carring interest @ LIBOR+2.75% p.a. and last installment is repayable on 15 April 2012.

 

(n) Term loan of Rs. 107.051 Millions (Rs. 136.081 Millions) from State Bank of Bikaner and Jaipur is carring interest @ LIBOR+2.75% p.a. and repayable in 13 equal quarterly installment of Rs. 10.557 Millions from April 2011 to April 2014.

 

(o) Out of the total term loans, Rs. 49.316 Millions (Rs. 129.821 Millions) have been personally guaranteed by the promoter Directors.

 

 

 

Auditors :

 

Name :

MGB and Company

Chartered Accountants

 

 

Other Related parties with whom transactions have taken place during the year and balances outstanding as on the last day of the year :

·         Welspun Corp Limited, India

·         Welspun India Limited, India

·         Welspun Retail Limited, India

·         Welspun Steel Limited, India

·         Welspun Wintex Limited, India

·         Krishiraj Trading Limited, India

·         Mertz Securities Limited, India

·         Welspun Global Brands, Limited

·         Welspun USA Inc.

·         Welspun Investments and Commercials Limited, India

·         Welspun Realty Private Limited, India

·         Goodvalue Polyplast Limited, India

 

 

CAPITAL STRUCTURE

 

As on : 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

106700000

Equity Shares

Rs. 10/-each

Rs. 1067.000 Millions

3300000

Convertible Cumulative Preference  Shares

Rs. 10/-each

Rs. 33.000 Millions

10000000

Redeemable  Cumulative  Preference  Shares

Rs. 10/-each

Rs. 100.000 Millions

 

Total

 

Rs. 1200.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

23645027

Equity Shares

Rs. 10/-each

Rs. 236.450 Millions

3203300

10% Optionally Convertible Cumulative Preference  Shares of  Rs. 10/- each fully paid

 

Rs. 19.364 Millions

10000000

8%  Redeemable  Cumulative  Preference  Shares

of Rs. 10/- each fully paid up

 

Rs. 83.333 Millions

 

Total

 

Rs. 339.147 Millions

 

 

A. Reconciliation of  the equity shares outstanding at the beginning  and  at  the  end  of  year :

 

As on : 31.03.2012

 

Equity Shares

No. of Shares

Amount

At the beginning of the period

23645027

236.450

Movements during  the year

--

--

Outstanding at the end of the period

23645027

236.450

 

 

B. Reconciliation of the preference shares outstanding at the beginning and at the end of the year:

 

As on : 31.03.2012

 

Preference Shares

No. of Shares

Amount

At the beginning of the period

13203300

102.697

Movements during  the year

--

--

Outstanding at the end of the period

13203300

102.697

 

 

C. Terms / right attached to equity shares :

The company has only one class of equity shares having a par value of Rs. 10 per share. All issued shares rank pari-passu and have same voting rights per share. The company declares and pays dividend in Indian Rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

D.  Terms of Cumulative Redeemable Preference Shares :

a) 32,03,300 (32,03,300) 10% Optionally Convertible Cumulative Preference Shares (OCCPS) of Rs. 10 each fully paid up (option to convert was lapsed on 18.05.2003) are redeemable at par in three equal annual installments commencing from 18 June 2004. Out of the above, 30,00,000 OCCPS were rescheduled in 2005-06 and are redeemable in five equal annual installments.

 

The total amount of Rs. 1,93,63,667 (1,93,63,667) due for redemption as at 31 March 2012 is yet to be paid.

 

b) 1,00,00,000 (1,00,00,000) 8% Redeemable Cumulative Preference Shares of Rs. 10 each fully paid up are redeemable at par in six equal installments commencing from 31 March 2006.

 

The total amount of Rs. 8,33,33,333 (8,33,33,333) due for redemption as at 31 March 2012 is yet to be paid.

 

E. Details of  shareholders holding more than 5% shares in company :

 

As on : 31.03.2012

 

Equity Shares

No. of Shares

Amount

Krishiraj Trading Limited, India

4430577

18.74

Welspun Fintrade Limited, India

4018359

16.99

IFCI Limited

7741599

32.74

 

 

After 29.09.2012

 

Authorised Capital – 1200.000 Millions

 

Paid-up Capital – 392.396 Millions

 

 

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

339.147

339.147

339.147

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

450.116

403.048

306.536

4] (Accumulated Losses)

0.000

0.000

(31.621)

NETWORTH

789.263

742.195

614.062

LOAN FUNDS

 

 

 

1] Secured Loans

895.862

615.275

668.850

2] Unsecured Loans

90.000

90.000

150.000

TOTAL BORROWING

985.862

705.275

818.850

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1775.125

1447.470

1432.912

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1048.784

1035.082

909.883

Capital work-in-progress

206.607

74.740

44.849

 

 

 

 

INVESTMENT

223.360

223.360

223.360

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
639.709
567.851
397.586

 

Sundry Debtors
281.319
370.250
286.080

 

Cash & Bank Balances
150.045
16.275
47.316

 

Other Current Assets
108.217
86.419
0.000

 

Loans & Advances
370.227
157.152
165.036

Total Current Assets
1549.517

1197.947
896.018

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

857.311

789.552
609.863

 

Other Current Liabilities
261.461
234.731
0.440

 

Provisions
134.371
59.376
30.895

Total Current Liabilities
1253.143

1083.659
641.198

Net Current Assets
296.374

114.288
254.820

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1775.125

1447.470

1432.912

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

6115.505

5029.139

3611.218

 

 

Other Income

20.030

14.880

48.280

 

 

TOTAL                                     (A)

6135.535

5044.019

3659.498

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

4053.534

3325.393

2262.726

 

 

Purchase of Stock in Trade

62.316

0.000

0.000

 

 

Changes in Inventories of Finished Goods

(63.003)

(62.937)

0.000

 

 

Employees Benefits Expenses

277.357

240.019

0.000

 

 

Other Expenses

1390.150

1199.231

1125.586

 

 

TOTAL                                     (B)

5720.354

4701.706

3388.312

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

415.181

342.313

271.186

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

173.419

107.162

93.323

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

241.762

235.151

177.863

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

126.127

113.947

106.589

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

115.635

121.204

71.274

 

 

 

 

 

Less

TAX                                                                  (H)

(0.089)

(6.930)

0.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

115.724

128.134

71.274

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

96.512

(31.621)

(102.895)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Dividend on Optionally Convertible Cumulative Preference Shares

59.072

0.000

0.000

 

 

Tax on Dividend

9.584

0.000

0.000

 

BALANCE CARRIED TO THE B/S

143.580

96.512

(31.621)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Exports

1372.008

977.310

667.184

 

TOTAL EARNINGS

1372.008

977.310

667.184

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

719.882

474.070

306.202

 

 

Stores & Spares

46.809

60.168

46.820

 

 

Capital Goods

134.129

43.289

0.000

 

TOTAL IMPORTS

900.820

577.527

353.022

 

 

 

 

 

 

Earnings Per Share (Rs.)

4.47

4.99

2.59

 

 

 

QUARTERLY RESULTS

 

 

PARTICULARS

 

30.06.2012

1st Quarter

30.09.2012

2nd Quarter

31.12.2012

3rd Quarter

31.03.2013

4th Quarter

Net Sales

1810.800

2057.500

1911.300

1981.600

Total Expenditure

1702.600

1889.600

1813.400

18790.600

PBIDT (Excl OI)

108.100

167.900

98.000

91.000

Other Income

3.800

9.600

4.300

8.100

Operating Profit

112.000

177.500

102.300

99.100

Interest

50.900

44.200

44.600

42.800

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

61.000

133.400

57.700

56.300

Depreciation

33.300

41.300

33.900

39.600

Profit Before Tax

27.700

92.000

23.800

16.800

Tax

0.000

0.000

0.000

0.000

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

27.700

92.000

23.800

16.800

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

27.700

92.000

23.800

16.800

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
1.89

2.54

1.95

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.89

2.41

1.97

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.45

5.43

3.95

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.15

0.16

0.12

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
1.25

0.95

1.33

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.24

1.11

1.40

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

No

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

---------------

22]

Litigations that the firm / promoter involved in

--------------

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

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

DETAILS OF CREDITORS :

Rs. in Millions

Particulars

As on 31.03.2012

 

As on 31.03.2011

 

As on 31.03.2010

Acceptances

461.202

398.352

250.445

Due to micro and small enterprises

0.777

28.528

10.688

Due to others

222.346

238.122

348.730

Creditors for Capital Goods

9.425

7.619

0.000

Creditors for Expenses

163.561

116.931

0.000

Total

857.311

789.552

609.863

 

 

UNSECURED LOAN :

Rs. in Millions

Particulars

 

31.03.2012

31.03.2011

Inter Corporate Deposit

90.000

90.000

Total

90.000

90.000

 

OPERATIONS :

 

During the year, Net sales and services and Gross Profit before Interest and Depreciation were of Rs. 6115.505 Millions and Rs. 415.181 Millions respectively as compared to Rs. 5029.139 Millions and Rs. 342.313 Millions respectively for the previous year. Net sales and services of the Company and Gross Profits has thus increased by 21.60 % and 21.29 % over the previous year.

 

Exports during the financial year 2011-12 were of Rs. 1423.646 Millions as compared to Rs. 1040.108 Millions during the previous year, registering increase by 36.87%.

 

Power cost increased due to increase in power tariff both in Palghar, Maharashtra as well as at Rakholi, Silvassa.

Interest cost increased due to rate of interest and increase in borrowing for working capital. Foreign exchange difference losses were of Rs. 34.471 Millions during the financial year 2011-12 in view of fluctuation in foreign exchange. The Company has developed Panipat market for carpet yarn, yarn for Bath rugs, and spandex covered

yarn for denim industry. The Company has been accredited with .BBB. rating {investment grade} by the credit rating agency, CARE. This is as against our earlier rating of .BBB-. {non-investment grade}

 

 

MANAGEMENT DISCUSSION AND ANALYSIS :

 

INDUSTRY STRUCTURE, SCENARIO & DEVELOPMENT

 

The Indian Textile and Apparel industry was estimated to be worth USD 55 billion in 2009-10 as per the Office of the

Textiles Commissioner. It has witnessed robust growth over the last two decades, especially in the period after the abolition of the Quota regime on January 1, 2005, which led to free cross-border textile trade. India is positioned as a key manufacturing destination with inexpensive labor, abundant cotton supplies and good designing skills.

 

Indian T and A makes up approximately 4% of the global T and A market. As an industry with economic importance, the textile industry has always been an important sector for the government. The government has therefore introduced policies such as Technology Upgradation Fund Scheme, Scheme for Integrated Textile Parks, National Textile Policy low excise duty and high import duty (to discourage imports) to benefit the development of the textile sector.

 

A growing economy, rising disposable incomes and the growing aspirations of Indian consumers are expected to

continue driving growth in the Indian T and A industry.

 

India consumed about 2.25 million tonnes of MMF in FY11.The world fiber industry mainly constitutes of cotton and MMF. MMF dominates the world fiber consumption, contributing more than 60 per cent to the overall fiber consumption. The rise in share can be attributed to the growing consumption of MMF in the developing countries. Going forward, the share of MMF is expected to grow further as the world cotton production is almost nearing its physical maximum and the MMF industry is expected to fulfill the incremental demand. Polyester alone accounted for approximately 82% of the total MMF consumption in FY11. The shift to consumption of MMF would mainly be attributed to the growing demand for textiles, growing concerns over availability of cotton globally and rising cotton prices. The demand for MMF from textile sector will largely be driven by the growing usage of blended fabrics to meet the augmented demand for the apparels, home textiles and technical textiles.

 

The widening price differential between cotton and polyester and growth in use of non-cotton spun yarn and fabrics will drive the demand for polyester in India.

 

The demand for synthetic textiles has been growing due to its lower cost coupled with convenience and maintenance benefits associated with the usage of synthetic garments. The share of man-made fibers in total fiber consumption (cotton and MMF) has risen from 25% in early nineties to 41% at present.

 

Polyester has overtaken cotton as the dominant fiber, but the cost and availability still plays a significant role in the inter-fiber substitution. Rising crude oil prices and moderating cotton prices will lead the polyester industry to grow at a slower rate in the near future.

 

The Indian economy is estimated to grow by 6.9 per cent in 2011-12, after having grown at the rate of 8.4 per cent in each of the two preceding years. With agriculture and services continuing to perform well, India.s slowdown can

be attributed almost entirely to weakening industrial growth. Monetary policy was tightened by the Reserve Bank of India (RBI) during the year to control inflation and curb inflationary expectations. Rate of growth in textiles and their contribution to growth were negative.

 

The textile sector has so far remained subdued during the current financial year. The total cloth production has declined by 4.74 per cent during April-December 2011. During April . December 2011, man-made fiber production and filament yarn production recorded a decrease of about 2 per cent and 7 per cent respectively.

 

In view of the recessionary trend in the textiles sector, the government has been supporting the textiles sector exports through various policy initiatives to enable the sector to increase market share in the global textiles markets.

 

The Government proposes to increase the investment in the textiles sector to generate more employment through various schemes i.e. Scheme for Integrated Textiles Parks (SITP), Technology Upgradation Fund Scheme (TUFS), Integrated Skill Development Scheme (ISDS), Technology Mission on Technical Textiles (TMTT). The allocation during 12th Five Year Plan is proposed to be increased to Rs.  496516.900 Millions as against allocation of  Rs. 140000.000 Millions during 11th Plan.

 

 

The softening of the cotton prices since the beginning FY12, began to have its impact over the prices of other fibers like polyester. The prices of PFY and PSF had peaked during the first two months of FY12, due to the surge in demand for polyester and sky high cotton prices. Thereafter, the cotton prices started to ease, thereby putting pressure over the demand for polyester. The slowdown in demand due to the declining price differential between polyester and cotton forced the PSF and PFY manufacturers to reduce the prices.

 

The PFY production showed a decline as compared to the corresponding period in the previous year. The monthly PFY production declined by 1.3 per cent on a y-o-y basis. This segment also registered a decline in production on a m-om basis. The fall in production during the April-November 2011 period can be attributed to the slump in demand for the yarn and fabric from, both the global and domestic markets.

 

 

OUTLOOK :

 

The Company is in the process of expansion. This will increase in capacity of spinning, texturising, Dyed Texturising yarn and introducing BCF yarn. This will increase production capacity, reduce cost of production.

 

DISCUSSION ON FINANCIAL PERFORMANCE :

REVENUE

During the year, Net sales and services and Gross Profit before Interest and Depreciation were of Rs. 6115.505 Millions and Rs. 415.181 Millions respectively as compared to Rs. 5029.139 Millions and Rs. 342.313 Millions respectively for the previous year. Net sales and services of the Company and Gross Profits has thus increased by 21.60 % and 21.29 % over the previous year. Exports during the financial year 2011-12 were of Rs. 1423.646 Millions as compared to Rs. 1040.108 Millions during the previousyear, registering increase by 36.87%.

 

CONTINGENT LIABILITIES :

 

a) Guarantees given by banks Rs. 331.26 Millions (Rs. 320.00 Millions)

 

b) Disputed demands of Excise Duty, Custom Duty, Service Tax, Income Tax and Sales Tax . Rs. 1,200.14 Millions (Rs. 978.09 Millions)

 

c) Unexpired Letters of Credit Rs. 6936.33 Millions (Rs. 4,848.19 Millions).

 

d) Custom Duty on pending Export obligation for import under Advance License Rs. 111.12 Millions (Rs. 142.79 Millions).

 

e) The accumulated dividend of Rs. 880.85 Millions (Rs. 1,385.55 Millions) payable on Redeemable Cumulative / Optionally Convertible Cumulative Preference Shares.

 

f) Claims against the Company not acknowledged as debt Rs. 139.85 Millions (Rs. 139.85 Millions)

 

g) Bills receivable discounted Rs. 1,239.29 Millions (Rs. 1,128.67 Millions)

 

 

 

 

 

 

 

 

 

 

 

Statement of Unaudited financial results for the Quarter and

             Nine Months Ended on 31st December, 2012

 

Rs in Millions

Sr.

No.

 

Particulars

Standalone

Unaudited

Unaudited

Unaudited

Quarter Ended

Year to date

30.09.2012

30.06.2012

30.09.2012

1

1 a"

Net Sales/Income from Operations

2014.623

1771.120

3785.743

 

b.

Other Operating Income

42.916

39.630

82.546

 

 

Net Sales/ Income from Operations

2057.538

1810.750

3868.288

2

 

Total Expenditure

 

 

 

 

a.

Consumption of Raw Materials

1381.354

1097.069

2478.423

 

b.

Purchase of Traded Goods

0.000

72.611

72.611

 

c.

Change in inventories of finished goods, work in

(15.803)

38.718

22.915

 

d.

Employees benefits expenses (Refer note 3)

92.781

72.604

165.385

 

e.

Depreciation and Amortisation expenses

41.342

33.306

74.648

 

f.

Other Expenses

431.286

421.622

852.908

 

 

Total

1930.961

1735.930

3666.891

3

 

Profit from Operations before Other Income .finance costs and exceDtional items (1-2)

126.577

74.820

201.397

4

 

Other Income

9.574

3.829

13.403

5

 

Profit from ordinary activities before finance cost and exceDtional items (3+4)

136.151

78.650

214.800

6

 

Finance Costs

44.146

50.943

95.089

7

 

Profit from ordinary activities after finance costs but before exceDtional items C5+61

92.005

27.707

119.711

8

 

Exceptional items

-

-

-

9

 

Profit from ordinary actiivites before tax(7±8)

92.005

27.707

119.711

10

 

Tax Expenses   - Current year

18.408

5.544

23.952

 

 

Earlier years

 

 

-

 

 

Less : MAT Credit Entiltement

(18.408)

(5.544)

(23.952)

11

 

Net Profit from ordinary activites after tax (9±10)

92.005

27.707

119.711

12

 

Net Profit for the period

92.005

27.707

119.711

13

 

Paid up Equity Capital (Face Value of Rs. 10/- each)

236.450

236.450

236.450

14

 

Reserves excluding Revaluation Reserve

 

 

 

IS

 

Earning per share (* Not Annualiscd)

 

 

 

 

 

a) Basic

3.78

1.07

4.85

 

 

b) Diluted

3.78

1.07

4.85

 

 

 

 

Particulars

Quarter Ended

Year to date ended

30.09.2012

30.06.2012

30.09.2012

 

 

 

 

 

PARTICULARS OF SHAREHOLDING Public Shareholding

 

 

 

 

 

a) Number of shares

1,47,39,921

1,47,39,921

1,47,39,921

 

 

b) Percentage of shareholding

62.34

62.34

62.34

 

2

Promoters & Promoters Group Shareholding as on a. Pledged/Encumbered

 

 

 

 

 

No of Shares

NIL

NIL

NIL

 

 

Percentage of Shares (as a % of the total Shareholding

 

 

 

 

 

of Promoters & Promoter Group)

NIL

NIL

NIL

 

 

Percentage of Shares (as a % of the total Share capital of

NIL

NIL

NIL

 

 

b. Non-Encumbered

 

 

 

 

 

No of Shares

89,05,106

89,05,106

89,05,106

 

 

Percentages of Shares  of Promoters

100.00

100.00

100.00

 

 

Percentages of Shares

37.66

37.66

37.66

 

 

INVESTOR COMPLAINTS

30.09.2012

30.06.2012

30.09.2012

Pending at the Beginning of the quarter

0

0

0

Received during the quarter

1

3

4

Disposed of during the year

1

3

4

Remaining unresolved at the end of the quarter

0

0

0

 

 

 

STATEMENT OF ASSETS AND LIABILITES

Rs in Millions

Sr

Particulars

Unaudited

No

30.09.2012

A

EQUITY AND LIABILITIES

 

1

Shareholders Fund

 

1 a

Share Capital

337.814

b

Reserves and Surplus (Refer note 4)

638.483

c

Money received against share warrants

-

 

Sub-total

976.297

2

Non-current liabilities

 

a

Long - Term Borrowings

602.503

b

Other long term liabilities

-

c

Long - Term Provisions

65.579

 

Sub-total

668.082

3

Current Liabilities

-

a

Short - Term Borrowings

624.446

b

Trade Payables

665.887

c

Other Current Liabilities

598.305

d

Short - Term Provisions

35.822

 

Sub-total

1924.460

 

Total

3568.839

B

ASSETS

 

1

Non Current Assets

 

a

Fixed Assets

 

 

(i) Tangible Assets

1287.944

 

(ii) Intangible Assets

77.720

 

(iii) Capital Work-in-Progress

102.167

b

Non Current Investments

223.360

c

Long term loans and advances

181.001

d

Other non-current assets

48.345

 

Sub-total

1920.537

 

Foreign Currency Monetary Item Translation Difference Account

0.197

2

Current Assets

_

a

Inventories

740.897

b

Trade Receivables

442.821

c

Cash and Bank balances

94.804

d

Short term loans and advances

3,10.312

e

Other current Assets

59.271

 

Sub-total

1648.105

 

Total

3568.839

 

Note :

 

  1. The above results were reviewed and recommended by the Audit Committee and taken on record by the Board of Directors in its meeting held on 9 November, 2012 in terms of Clause 41 of the Listing Agreement.
  2. The Statutory Auditors have carried out 'Limited Review' of the financial results for the half year/ quarter ended 30 September, 2012.
  3. Employee benefits expenses include commission paid of Rs. 45.74 Millions for financial year 2010-11 and 2011-12 to Executive director on receipt of Central Government approval.
  4. Reserve and Surplus includes reversal of accumulated dividend of Rs. 590.72 Millions and Rs. 95.84 Millions dividend distribution tax thereon (as same was not approved at Annual General Meeting on 29th September 2012) on Optionally Convertible Cumulative preference shares.
  5. The Company has allotted on 29th October2012, 1,60,00,000 6% Optionally Convertible Cumulative preference shares of Rs. 10/- each at par to Krishiraj Trading Limited (allottee), Promoter of the Company; which is to be converted into equity shares at any time within from the date of allotment @ Rs. 10.26 per share.
  6. The Company has only one segment of activity viz Synthetic Yarn.
  7. Previous year's/Period's figures have been regrouped / rearranged/ recasted wherever considered necessary.

 

 

 

 

 

 

 

 

 

 

 

WELSPUN TO SELL WIMBLEDON TOWELS IN INDIA FROM NEXT YEAR

PTI Jun 25, 2012,

As top stars descend on the courts of All England Lawn Tennis Club to vie for the Wimbledon Championship, Indians have a thing to cheer as the towels used in the tournament by the likes of Roger Federer, Rafael Nadal or Maria Sharapova will also be available in the country from next year.

 

Mumbai-headquartered diversified group Welspun, which is supplying the Christy towels for the third year running from India, has been given permission to retail it in the country by the Wimbledon organisers.

 

"There is good news for the Indian (tennis) fans as well because from next year onwards the towels will be available in India. The agreement to this effect has been reached with AELTC (All England Lawn Tennis Club) after immense persuasion with the authorities," Welspun Chairman BK Goenka told PTI.


Apart from being used by the players, the Christy towel will be available in all the shops at the Wimbledon site during the event.


"For the rest of the year, the towels are available in the Museum shop which is open to the visitors all the year round. It can also be purchased on-line in the UK from the Wimbledon shop," Goenka said.


For this year's tournament which begins today and ends on July 8 in London, Welspun is supplying over a lakh Christy towels.


"Every year the quantities keep on growing based on the demand. It may be noted that Christy towels is the second largest selling item during the tournament after McDonalds Burger," he said.


For Wimbledon Championship 2011, the company had shipped 92,493 pieces of towels.


Welspun had acquired CHT Holdings Limited, the holding company of the Britain's leading towel brand, Christy, in 2006.

"This is the first change in many years wherein the Wimbledon logo has been recreated (in the towel). The towel has been designed by Welspuns' UK design studio," Goenka said.

 

                          

WELSPUN CORP BUYS BACK $44.1 MILLION FCCBS

PTI Oct 30, 2012,

MUMBAI: Welspun Corp Limited, the flagship company of the USD 3.5 billion Welspun Group, today said it has completed a buyback of foreign currency convertible bonds (FCCBs) worth USD 44.1 million out of USD 150 million debt.

Welspun, the second largest line pipe company in the world, has completed part buyback of the 4.50 per cent FCCBs due in 2014, it said in a statement.

This buyback was funded by new foreign currency loan with an average maturity of 5 years. After accounting for this repurchase, convertible bonds worth $105.9 million remain outstanding and due for maturity by October, 2014.

Besides reducing the potential equity dilution, bond repurchase further reposes the confidence in the business model and will boost the profitability going forward, the release said.



Welspun Corp is a one-stop service provider offering complete pipe solution with a capability to manufacture line pipes.

With current capacity of 2.2 million tonnes per annum in Dahej and Anjar in Gujarat, Little Rock in the USA and Saudi Arabia, Welspun is a preferred supplier to most of the Fortune 100 oil and gas companies.

 

WELSPUN GETS $161 MILLIONS TO FINANCE INDIA’S LARGEST SOLAR PLANT

By Sally Bakewell – Mar 5, 2013

Welspun Group gained 8.85 billion rupees ($161 million) from lenders led by Central Bank of India to finance the country’s largest solar project.

 

Welspun, India’s biggest solar developer, signed long-term loans for its 130-megawatt venture in the Mandsaur district of Madhya Pradesh, the company said today in a statement. The solar plant, India’s largest according to Welspun, will power 660,000 homes when switched on in May next year.

 

Federal and state authorities are encouraging solar energy to boost generation and cut power shortages that are impeding economic growth. The central Indian state of Madhya Pradesh has an annual power deficit of 17.9 percent, according to Welspun.

 

The company has more than 300 megawatts of clean energy projects in construction or operation with plans to commission 1.75 gigawatts of solar and wind in the next few years.

 

 

 

Welspun Group buys 7.5% stake in Indian arm

The company transfered construction orders worth Rs 550 cr in a unique no cash deal

In a unique no-cash deal, steel pipe manufacturer Welspun group on Tuesday increased its stake in Leighton Welspun Contractors (LWC) to around 40 per cent by transferring construction orders worth Rs 5500.000 Millions to the contractor firm.

In exchange to the engineering, procurement and construction (EPC) orders from Welspun Projects Ltd, LWC will issue shares worth 7.5 per cent stake, or Rs 1150.000 Millions.

Around two years back, the group had bought a 35 per cent stake in Leighton Contractors India, the Indian arm of the Australian construction and mining giant Leighton Holdings Group. Welspun had paid around Rs 4700.000 Millions for the acquisition.  

Welspun says the latest deal would let it exit the construction business, mostly. “Welspun Projects' focus on EPC is relatively low, and we will look only at engineering and procurement in the future. Welspun would more or less exit the construction business except the pending projects in the last lag,” said Akhil Jindal, head of finance and corporate strategy, Welspun group.

After ingesting 72 per cent of Welspun Projects' orders, LWC's order book would be around Rs  45000.000 Millions, while that of Welspun Projects would reduce to Rs  2000.000 Millions. The deal, however, is subject to shareholder approvals.

Jindal claims LWC, too, would gain from the deal as it would get entry into the orders in the water treatment and construction segment, in addition to gaining orders. “LWC is not present in the water segment significantly. Through this, it would get pre-qualification and a foothold into water,” he added.

While no fixed assets like equipment would be transferred as a part of the deal, 30-35 employees might move along with the orders. These would be the core employees.

Without the burden of EPC orders, Welspun might now look at more projects as a developer. “It would allow us to focus on developer's role. Earlier, we were more of a construction company. We have some road projects on the build, own, operate and transfer mode. Now, we can look at some selective opportunities as a developer,” Jindal said.

 

FIXED ASSETS:

 

Tangible Assets

·         Freehold Land

·         Buildings

·         Plant and Machinery

·         Vehicles

·         Furniture and Fixture

·         Equipments

·         Computers

Intangible Assets

·         Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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. 56.87

UK Pound

1

Rs. 87.65

Euro

1

Rs. 74.52

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

NIS

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

49

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.