MIRA
INFORM REPORT
|
Report Date : |
16.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
INDOSOLAR LIMITED |
|
|
|
|
Formerly Known
As : |
ROBIN GARMENTS PRIVATE LIMITED ROBIN SOLAR PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
C-12, Friends Colony (East), New Delhi – 110065 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
08.04.2005 |
|
|
|
|
Com. Reg. No.: |
55-134879 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.3351.440
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L18101DL2005PLC134879 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELP13350B DELR15134A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAECP2108F AADCR2872D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Solar Photovoltaic cells |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (15) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a company having a moderate track record. There appears
huge dip in the sale turnover during 2012. It has incurred heavy loss from
its operations which seems to be increasing over years. The company’s liquidity is weak mainly because of a slowdown in the
offtake of its products in its major market, Europe. The market price of the company’s share is underpriced. Business is
active. Payments are reported to be slow and delayed. The company can be considered for business dealings on a safe and
secured trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including industrial
deregulation, privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of persistently
high inflation and interest rates and little progress on economic reforms. High
international crude prices have exacerbated the government's fuel subsidy
expenditures contributing to a higher fiscal deficit, and a worsening current
account deficit. Little economic reform took place in 2011 largely due to
corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
CRISIL D (Term Loan) |
|
Rating Explanation |
Default |
|
Date |
18.11.2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
CRISIL D (Cash Credit Limit) |
|
Rating Explanation |
Default |
|
Date |
18.11.2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
C-12, Friends Colony (East), New Delhi – 110065, India. |
|
Tel. No.: |
91-11-26841375/ 26311706 |
|
Fax No.: |
91-11-26843949 |
|
E-Mail : |
|
|
Website : |
|
|
Area: |
1000 Sq.mtr (Registered office) 8 Acres (Factory) |
|
Location : |
Owned |
|
|
|
|
Corporate Office/ Factory2 : |
3C/1, Ecotech – II, Udyog Vihar, District Gautam Budh Nagar, Greater
Noida 201306, Uttar Pradesh, India. |
|
Tel. No.: |
91 120 4762500 |
|
Fax No.: |
91 120 4762533/ 4762525 |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Bhushan Kumar Gupta |
|
Designation : |
Chairman cum Managing Director |
|
Address : |
C-12, Friends Colony (East), |
|
Date of Birth/Age : |
26.01.1936 |
|
Qualification : |
Entrepreneur |
|
Date of Appointment : |
25.09.2009 |
|
DIN No.: |
00168071 |
|
|
|
|
Name : |
Mr. Hulas Rahul Gupta |
|
Designation : |
Managing Director |
|
Address : |
C-12, Friends Colony (East), |
|
Date of Birth/Age : |
24.10.1959 |
|
Qualification : |
B.B.A. |
|
Date of Appointment : |
25.09.2009 |
|
DIN No.: |
00297722 |
|
|
|
|
Name : |
Mr. Anand Kumar Agarwal |
|
Designation : |
Executive Director and Chief Financial Officer |
|
Address : |
38, R P S Flats, Sheikh Sarai Phase-I, |
|
Date of Birth/Age : |
07.07.1949 |
|
Qualification : |
A.C.A. |
|
Date of Appointment : |
25.09.2009 |
|
DIN No.: |
00155299 |
|
|
|
|
Name : |
Mr. Gautam Singh Kuthari |
|
Designation : |
Independent Non Executive Director |
|
Address : |
Bargola Building, Fancy Bazar, Guwahati, Assam, 781001 |
|
Date of Birth/Age : |
31.08.1959 |
|
Date of Appointment : |
31.05.2010 |
|
Email : |
|
|
DIN No.: |
00945195 |
|
|
|
|
Name : |
Mr. Arun Kumar Gupta |
|
Designation : |
Non-Executive Independent Director |
|
|
|
|
Name : |
Mr. Gurbaksh Singh Vohra |
|
Designation : |
Non-Executive Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Atul Kumar Mittal |
|
Designation : |
Company Secretary and Compliance Officer |
|
Address : |
21-B, Pocket – C, Mayur Vihar Phase – II, |
|
Date of Birth/Age : |
10.04.1959 |
|
Date of Appointment : |
25.09.20090 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
136885497 |
40.84 |
|
|
136885497 |
40.84 |
|
|
|
|
|
|
70114500 |
20.92 |
|
|
70114500 |
20.92 |
|
Total shareholding of Promoter and Promoter Group (A) |
206999997 |
61.76 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
15915746 |
4.75 |
|
|
56793 |
0.02 |
|
|
15972539 |
4.77 |
|
|
|
|
|
|
20071196 |
5.99 |
|
|
|
|
|
|
45473441 |
13.57 |
|
|
36345350 |
10.84 |
|
|
10281504 |
3.07 |
|
|
42644 |
0.01 |
|
|
2067119 |
0.62 |
|
|
3640579 |
1.09 |
|
|
175741 |
0.05 |
|
|
4351421 |
1.30 |
|
|
4000 |
0.00 |
|
|
112171491 |
33.47 |
|
Total Public shareholding (B) |
128144030 |
38.24 |
|
Total (A)+(B) |
335144027 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
335144027 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Solar Photovoltaic cells |
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|
Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
|
Solar Cells |
Nos. |
NA |
NA |
*52560000 |
|
Solar Modules |
-- |
-- |
-- |
0.000 |
*Solar Cells excludes 3,217,061 (Previous Year: Nil) produced and
dispatched under job work arrangement
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
Corporation Bank Industrial Finance Branch, 1ST Floor, 16/10, Telephone: +91 11 2875
7455/ 2875 7639 Facsimile: +91 11 28750956 Email: cb447@corpbank.co.in Contact Person: Mr. V. S.
Karthikeyan Website: www.corpbank.com Indian Bank G-41, Connaught Circus, Telephone: +91 11 2371
2162/ 2371 2164 Facsimile: +91 11 2371 8418 Email: ibnewdelhimain@vsnl.net Contact Person: Mr. G.
Rangarajan Website: www.indianbank.in Union Bank of Industrial Finance Branch, M-11, 1ST Floor, Telephone: +91 11 2341
7401 - 07 Facsimile: +91 11 2341
7405 Email: ifbcp@unionbankofindia.com Contact Person: Mr. Pankaj
Sharma Website: www.unionbankofindia.com Bank of Ground Floor, Bank of Baroda Building, 16,Sansad Marg, New Delhi 110
001, India Telephone: +91 11 2331
0349 Facsimile: +91 11 2371
1267 Email: indel@bankofbaroda.com Contact Person: Mr. R.K. Arora Website: www.bankofbaroda.com Andhra Bank M-35, Telephone: +91 11 2341
5616 Facsimile: +91 11 2341
6043 Email: bmdel084@andhrabank.co.in Contact Person: Mr. C. Bala
Subramanyam Website: www.andhrabank.in Bank of Corporate Financial Services Branch, |
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|
Facilities : |
(Rs.
In Millions)
|
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|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B S R and Associates Chartered Accountants |
|
Address : |
Building No.10, 8th Floor, Tower-B, DLF, Cyber City, Phase-II, Gurgaon
- 122002, India |
|
Tel. No.: |
91-124-3074000 |
|
Facsimile : |
91-124-2549101 |
|
E-Mail : |
|
|
|
|
|
Cost Auditors : |
|
|
Name : |
Kabra and Associates Cost Accountants |
|
Address : |
552/1B, Arjun Street, Main Vishwas Road, Vishwas Nagar, Delhi-110032, India |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Share |
Rs.10/- each |
Rs.5000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
335144027 |
Equity Shares |
Rs.10/- each |
Rs.3351.440
Millions |
|
|
|
|
|
Reconciliation of shares
outstanding at the beginning and at the end of the reporting period
|
Equity Shares |
Number (‘000) |
Amount in Millions |
|
At the beginning of the year |
335,144.03 |
3351.440 |
|
Add : Fresh allotment of share by way of IPO |
-- |
-- |
|
Add : Fresh allotment of share other than by IPO |
-- |
-- |
|
At the end of the
year |
335,144.03 |
3351.440 |
Term and rights attached
to Equity shares
The Company has only one type of equity shares having par value of Rs. 10 each per share. All shares rank pari passu with respect to dividend, voting rights and other terms. Each shareholder is entitled to one vote per share except, in respect of any shares on which any calls or other sums payable have not been paid. The Company pays and declares dividends in Indian Rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Particulars of
shareholders holding more than 5% equity shares
|
Particulars |
Number (‘000) |
% holding in the equity share |
|
Equity shares of Rs. 10 each fully paid |
|
|
|
Bhushan Kumar Gupta (Chairman) |
56,500.00 |
16.86% |
|
Hulas Rahul Gupta (Managing Director) |
80,385.49 |
23.99% |
|
Greenlite Lighting Corporation |
70,114.50 |
20.92% |
Aggregate number of equity shares
issued for consideration other than cash and shares bought back during the
period of five years immediately preceding 31st March, 2012
(i) 185,000 equity shares (in
‘000) of Rs. 10 each, fully paid and 15,000 equity shares (in ‘000) of Rs. 0.50
each partly paid were issued to the shareholders of erstwhile Indosolar Limited
in the year ended 31st March, 2009 in accordance with the scheme of
amalgamation. Such partly paid equity shares were made fully paid prior to the
effective date of scheme of amalgamation i.e. 24th September, 2009.
(ii) No shares have been bought
back during the five-year period ended 31st March, 2012 (31st March, 2011).
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 |
3351.440 |
3351.440 |
2084.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
151.650 |
|
|
3] Reserves & Surplus |
0.000 |
771.905 |
36.400 |
|
|
4] (Accumulated Losses) |
(1251.742) |
0.000 |
(802.460) |
|
|
NETWORTH |
2099.698 |
4123.345 |
6223.043 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7532.181 |
4324.454 |
5367.348 |
|
|
2] Unsecured Loans |
95.000 |
0.000 |
70.000 |
|
|
TOTAL BORROWING |
7627.181 |
4324.454 |
5437.348 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9726.879 |
8447.799 |
6906.938 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5608.805 |
5948.903 |
6533.926 |
|
|
Capital work-in-progress |
4205.567 |
152.146 |
100.612 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.965 |
660.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
321.060
|
998.668 |
773.383
|
|
|
Sundry Debtors |
108.187
|
630.819 |
231.050
|
|
|
Cash & Bank Balances |
104.691
|
119.299 |
241.097
|
|
|
Other Current Assets |
306.890
|
331.516 |
0.000
|
|
|
Loans & Advances |
206.859
|
1177.544 |
137.147
|
|
Total
Current Assets |
1047.687
|
3257.846 |
1382.677 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
250.058
|
349.990 |
1014.189
|
|
|
Other Current Liabilities |
882.464
|
1216.155 |
120.336
|
|
|
Provisions |
3.623
|
4.951 |
2.713
|
|
Total
Current Liabilities |
1136.145
|
1571.096 |
1137.238 |
|
|
Net Current Assets |
(88.458)
|
1686.750 |
245.439
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
26.961 |
|
|
|
|
|
|
|
|
TOTAL |
9726.879 |
8447.799 |
6906.938 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
813.426 |
5434.019 |
1125.167 |
|
|
|
Other Income |
158.431 |
476.279 |
189.618 |
|
|
|
TOTAL (A) |
971.857 |
5910.298 |
1314.785 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
861.161 |
5120.837 |
|
|
|
|
Administrative Expenses |
489.241 |
(276.675) |
|
|
|
|
Advertising Expenses |
104.695 |
121.894 |
1518.632 |
|
|
|
|
605.722 |
640.303 |
|
|
|
|
|
0.000 |
(316.765) |
|
|
|
|
TOTAL (B) |
2060.819 |
5289.594 |
1518.632 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(1088.962) |
620.704 |
(203.847) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
592.509 |
676.677 |
271.876 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND
AMORTISATION (C-D) (E) |
(1681.471) |
(55.973) |
(475.723) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
342.176 |
518.286 |
187.362 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX (E-F)
(G) |
(2023.647) |
(574.259) |
(663.085) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.134 |
0.752 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) AFTER TAX (G-H) (I) |
(2023.647) |
(574.393) |
(663.837) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1376.930) |
(802.537) |
(138.700) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(3400.577) |
(1376.930) |
(802.537) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
717.385 |
5383.221 |
1049.457 |
|
|
TOTAL EARNINGS |
717.385 |
5383.221 |
1049.457 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
738.879 |
5114.750 |
1529.440 |
|
|
|
Capital Goods |
3896.290 |
11.534 |
2372.610 |
|
|
|
Commission on acquisition of capital goods |
8.342 |
0.000 |
0.000 |
|
|
|
Components and spare parts |
10.095 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
4653.606 |
5126.284 |
3902.050 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(6.04) |
(2.09) |
(3.32) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
0.800 |
34.100 |
160.500 |
|
Total Expenditure |
44.500 |
126.200 |
114.100 |
|
PBIDT (Excl OI) |
(43.700) |
(92.100) |
46.400 |
|
Other Income |
7.700 |
4.500 |
5.400 |
|
Operating Profit |
(36.000) |
(87.600) |
51.800 |
|
Interest |
129.500 |
133.300 |
133.200 |
|
Exceptional Items |
09.400 |
0.000 |
0.000 |
|
PBDT |
(156.200) |
(220.900) |
(81.400) |
|
Depreciation |
75.300 |
80.800 |
93.800 |
|
Profit Before Tax |
(231.500) |
(301.700) |
(175.200) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(231.500) |
(301.700) |
(175.200) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(231.500) |
(301.700) |
(175.200) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(208.22)
|
(9.72) |
(50.49)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(248.78)
|
(10.57) |
(58.93)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(30.40)
|
(6.24) |
(8.38)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.96)
|
(0.14) |
(0.45)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
3.63
|
1.05 |
4.47
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.92
|
2.07 |
1.22
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
Yes |
|
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 |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
BACKGROUND
The Company had set up a green field project for manufacturing Solar Photovoltaic cells with a capacity of 160 MW, comprising two lines of 80 MW each under Phase –I and are in the process of setting up an additional manufacturing facility Line -3 with a 200 MW capacity under Phase – II, at Plot No. 3C/1 Ecotech-II, Udyog Vihar Greater Noida in the State of Uttar Pradesh. The existing lending banks (‘Lenders’) had, at the request of the Company, sanctioned Term loans, deferred payment guarantee facilities and working capital facilities on such terms and conditions as contained in various loan agreements / facility agreements entered into between the Company and the Lenders.
PERFORMANCE REVIEW
During the year, the Company has been severally impacted due to sudden demand downturn in SPV cell segment resulting from liquidity crisis in Europe, lower sales realization without commensurate fall in raw material prices and underutilization of capacity due to industry downturn.
Germany reduced Feed-in-Tariff from January 2011 and this gave farm developers time to wait for better pricing. Many countries reduced subsidy support to solar sector, in order to combat their fiscal deficit. This resulted in lower off take of solar products globally leading to reduced demand. This downturn was entirely unanticipated and had taken the industry by surprise.
The demand had suddenly eroded while the supply chain was in full ramp. This created an artificially high inventory pile-up in Asia as well as at European ports and the same resulted in over 60% price erosion worldwide. These factors also caused halt in operations of solar industry globally.
Indosolar also got affected severely and its operations showed heavy losses. Since beginning of the year, the plant was operating at a very low capacity and it remained totally closed from September 2011 onwards. The liquidity had dried-up and the Company was not in a position to service its debt till revival of the market. So, the Company approached its bankers for restructuring of debts under CDR route.
During the year, the Company reported total income of Rs. 971.857 Millions as against Rs. 5910.298 Millions last year. After making a provision of Rs. 572.800 Millions towards interest and Rs. 342.176 Millions towards depreciation, the current financial year closed with a loss of Rs. 2023.647 Millions as against loss of Rs. 574.393 Millions last year.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
There has been drastic downturn in SPV cells industry leading to substantial fall in the revenue generating parameters like sales realization and capacity utilization leading to fall in sales. Presently, when upfront system costs are factored into cost per KW, the cost of solar power substantially exceeds the cost of power supplied by the electric utility grid in almost all locations. As a result, national and local governmental bodies in many countries, most notably in Germany, Spain, Italy, the United States, India and China, provided subsidies and economic incentives in the form of feed-in tariffs, rebates, tax credits and other incentives to distributors, system integrators and manufacturers of solar power products in order to promote the use of solar energy in on-grid applications and to reduce dependence on other forms of energy.
However, due to global economic downturn, many countries reduced subsidy support to control their fiscal deficit. This resulted in lower off take for solar products globally leading to reduced demand. This policy reversal was entirely unanticipated and had taken the industry by surprise. Besides this, the demand of Solar Cells in international market got seriously affected from early December 2010 and remained highly subdued due to early arrival of severe winter in Europe with heavy snow which stalled the installation process for almost two months. Further, the reduction in the Feedin- Tariff in Germany gave investors time to wait for better pricing. The macro-economic problems in EU countries and consequent cuts in Solar Subsidies imposed by governments of European countries have affected sales realizations. The entire global photovoltaic industry is reeling under losses. The demand had suddenly eroded while the supply chain was in full ramp. This created an artificially high inventory pile-up in Asia as well as at European ports and the same resulted in over 60% price erosion worldwide. These factors also caused halt in operations of solar industry globally.
FUTURE OUTLOOK
The Indian solar energy sector has been growing constantly in the past few years and is projected to grow further in future due to Government’s initiatives such as tax exemptions and subsidies. Also with huge decline in the cost of solar power it has become more competitive than diesel.
According to the research report “Indian Solar Energy Market Outlook 2012 by RNCOS E-Services Private Limited” Indian solar energy industry exhibits huge potential to become one of the top producers of solar energy in the world in coming years. The sector is now receiving continuous support from both central and state governments.
FINANCIAL PERFORMANCE
VIZ-A-VIZ OPERATIONAL PERFORMANCE
During the year, the Company’s Net Sales were Rs. 813.426 Millions as against Rs. 5434.019 Millions last year. EBITDA was Rs. (-) 1108.600 Millions as against of Rs. 579.200 Millions last year. The Company produced photovoltaic solar cells of 18.685 MWp as against 109.490 MWp last year.
UNSECURED LOAN
Rs. In Millions
|
Particular |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
LONG TERM
BORROWINGS |
|
|
|
Loan from shareholders |
95.000 |
0.000 |
|
Total |
95.000 |
0.000 |
CONTINGENT
LIABILITIES: (As on 31.03.2011)
(a)
Bills discounted with banks outstanding as at 31st March 2011 Rs. Nil. (Previous year: Rs.115.161 Millions).
(b)
Estimated amount of contracts remaining to be executed on capital account (net
of advances) not provided for Rs. 2690.316 Millions (Previous year Rs.11.529
Millions).
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER
201:
Rs. In Millions
|
Sl. No. |
Particulars |
3 months ended |
Preceding 3months ended |
Year to date figure for current period ended |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
|
Un-audited |
Un-audited |
Un-audited |
|
|
Part I |
|
|
|
|
1 |
Income from
operations |
|
|
|
|
a |
Net sales income from operations (net of excise duty) |
160.427 |
33.379 |
194.564 |
|
b |
Other operating income |
0.088 |
0.718 |
0.814 |
|
|
Total income from operations (net) |
160.515 |
34.097 |
195.378 |
|
2 |
Expenses: |
|
|
|
|
a |
Cost of materials consumed |
126.846 |
79.570 |
190.969 |
|
b |
Purchase of stock in trade |
6.181 |
7.395 |
13.576 |
|
c |
Changes in inventories of finished goods, work-in-progress and stock in trade |
(102.700) |
(52.692) |
(168.141) |
|
d |
Employee benefits expense |
21.203 |
23.323 |
65.919 |
|
e |
Depreciation and amortisation expense |
93.753 |
80.820 |
249.836 |
|
f |
Power and fuel |
19.965 |
34.175 |
57.019 |
|
g |
Other expenses |
42.650 |
34.462 |
125.484 |
|
|
Total expenses |
207.898 |
207.053 |
534.662 |
|
3 |
Loss from
operations before other income, finance cost and exceptional items (1-2) |
(47.383) |
(172.956) |
(339.284) |
|
4 |
Other income |
5.384 |
4.500 |
17.541 |
|
5 |
Loss from ordinary activities
before finance costs and exceptional items (3+4) |
(41.999) |
(168.456) |
(321.743) |
|
6 |
Finance costs |
133.161 |
133.274 |
395.976 |
|
7 |
Loss from ordinary
activities after finance cost but before exceptional items (5-6) |
(175.160) |
(301.730) |
(717.719) |
|
8 |
Exceptional items gain/ (loss) |
|
|
(9.382) |
|
9 |
Loss from ordinary
activities before tax (7-8) |
(175.160) |
(301.730) |
(708.337) |
|
10 |
Tax expenses |
|
|
|
|
11 |
Loss from ordinary
activities after tax (9-10) |
(175.160) |
(301.730) |
(708.337) |
|
12 |
Extraordinary items (net of tax expenses) |
|
|
|
|
13 |
Loss after taxes
(11+12) |
(175.160) |
(301.730) |
(708.337) |
|
14 |
Paid up equity share capital (Face value-Rs.10/-each) |
3351.440 |
3351.440 |
3351.440 |
|
15 |
Reserves (excluding revaluation reserve, if any) |
|
|
|
|
16 |
Earning per share (before extraordinary item) On Rs.) (not annualised) |
|
|
|
|
|
Basic |
(0.52) |
(0.90) |
(2.11) |
|
|
Diluted |
(0.52) |
(0.90) |
(2.11) |
|
17 |
Earning per share (after extraordinary item) On Rs.) (not annualised) |
|
|
|
|
|
Basic |
(0.52) |
(0.90) |
(2.11) |
|
|
Diluted |
(0.52) |
(0.90) |
(2.11) |
|
|
Part II |
|
|
|
|
A |
Particulars of
Shareholding |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
- Number of shares |
128,144,030 |
128,144,030 |
128,144,030 |
|
|
- Percentage of shareholding |
38.24% |
38.24% |
38.24% |
|
2 |
Promoters and
promoter group shareholding |
|
|
|
|
|
a) Pledged/ encumbered |
136,885,495 |
136,885,495 |
136,885,495 |
|
|
- Number of shares |
66.13% |
66.13% |
66.13% |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
40.84% |
40.84% |
40.84% |
|
|
- Percentage of shares (as a % of the total share capftal of the company) |
|
|
|
|
|
b) Non encumbered |
|
|
|
|
|
- Number of shares |
70,114,502 |
70,114,502 |
70,114,502 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
33.87% |
33.87% |
33.87% |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
20.92% |
20.92% |
20.92% |
|
B |
Investor Complaints |
|
|
|
|
|
Pending at the beginning of the quarter |
-- |
|
|
|
|
Received during the quarter |
1 |
|
|
|
|
Disposed of during the quarter |
1 |
|
|
|
|
Remaining unresolved at the end of the quarter |
-- |
|
|
1. The Company has incurred significant losses in the current quarter and in the nine months ended 31 December 2012 as well as in the year ended 31 March 2012. The accumulated losses have resulted in substantial erosion of its net worth. The Solar industry and the Company have undergone turmoil owing to significant downturn in the global market. As a consequence, the Company has been unable to utilize its capacity as the cost of production of solar cells continues to be higher than the prevailing market prices. Considering the difficulties the Company has faced during the past one year, it has had its debt restructured in the previous year ended 31 March 2012
On the basis of audited financial statements for the year ended 31 March 2012 that was adopted in the Annual General Meeting held on 29 September 2012, it was observed that the accumulated losses as at 31 March 2012 have resulted in the erosion of more than 50% of its peak networth during immediately preceding four financial years. Consequently, an Extra Ordinary General Meeting had been called on 21 November 2012, for seeking necessary approva from the shareholders, to report the matter to the Board for Industrial and Financial Reconstruction ('BIFR') of the fact relating to erosion of networth. The report to Board for Industrial and Financial Reconstruction has been made on 22 November 2012.
Under the debt restructuring package, additional credit facilities were sanctioned and the Company has been able to obtain unsecured loans from parties as part of promoter contribution stipulated under the terms of Debt restructuring. The Company has also been able to seek deferral for some of its liabilities arising out of capital expansion. The management believes that it is appropriate to prepare the financial statements on the going concern assumption and accordingly, these results do not include any adjustments that might result from the outcome of uncertainties more fully explained in Note 2 below.
2. The continuing mismatch between cost and selling prices resulted in very low capacity utilisation, amounting to virtual stoppage of plant from September 2011, which severely impacted the cash flow position of the Company that prompted the filing of a restructuring package with the Corporate Debt Restructuring Cell. In connection therewith, the Company prepared Cash Flow projections after taking into account the business realities and such cash flows were incorporated in the CDR package which was approved by the consortium of banks in March 2012.
Management believes that the sector requires significant government support and policy intervention to achieve viability of the sector. A few such policy initiatives under active discussion which will have a positive impact, the outcome of which is awaited at this point in time relate to:
The imposition of Anti Dumping Duty on goods from China, Taiwan, Malaysia and USA as per the petition filed by The Solar Manufacturers Association of India on 18th January 2012 which has been accepted for initiation of investigation; continuance and increasing the scope of Local Content Requirement ['LCR'] for the PV cells in Phase II of National Solar Mission [2013 to 2017]; mandating domestic content for thin film; commitment of the government to the National Solar Mission and State Solar Missions; and method of incentivising solar projects either through 'Viability Gap funding' or 'Generation Based Incentive'.
Anticipating significant policy initiatives, the industry has shown some signs of recovery and the Company is currently expanding its capacity. However, the actual net cash inflows are substantially lower than the projections incorporated in the CDR package. Management has formulated plans to increase its focus on the domestic market to increase profitability and to utilise its capacity to the optimum as a long term strategy. As a result of the significant uncertainties and possible changes in the business dynamics mentioned above, the outcome of which, including consequential impact on the Company's cash flows, will be known only in the ensuing periods, the cash flows that were prepared by management and as approved by the CDR cell have been considered for impairment assessment. The analysis based on aforesaid cash flow projections does not indicate impairment as at 31 December 2012.
3. As more fully explained in Note 1 and 2 above, due to the circumstances that resulted in the Company incurring significant cash and operating losses during the year ended 31 March 2012, the Company requested the Lenders for debt restructuring and the request was referred to the Corporate Debt Restructuring Forum, (hereinafter referred to as the "CDR CELL"). Pursuant thereto, the CDR Empowered Group approved a restructuring package in terms of which the Existing Financial Assistance was restructured and certain additional financial assistance was sanctioned per the Letter of Approval dated 7 March 2012. The Company had accordingly given effect to the CDR scheme w.e.f. from 1 July 2011, in the financial statements for the year ended 31 March 2012. However one of the banks of the consortium group i.e. Indian Bank had not agreed to the CDR package and had not signed the Master Restructuring Agreement (MRA). The MRA was signed by the concerned bank on 5 July 2012.
Under the debt restructuring package, the term loans that existed were restructured whereby the term for repayment has been extended till 31 March 2021, interest rates were reduced to 10.75% per annum. The irregularity that existed in the working capital facilities was carved out and converted into working capital term loan with the repayment commencing from 31 December 2013. In addition the interest on such facilities w.e.f 1 July 2011 till 30 June 2013 shall be funded by way of Funded Interest Term loan which is repayable from 31 December 2013. Further, the Company had obtained additional funding for expansion of its existing manufacturing facility. Further, in the quarter ended 30 June 2012, appropriate adjustments based on reconciliations had been carried out in relation to borrowings from Indian Bank taking the effect of the MRA wherein the excess of interest charged in the period 1 July 2011 to 31 October 2011 amounting to Rs. 93.82 lakhs has been credited/ received from Indian Bank, the effect of which had been disclosed as an exceptional item.
In accordance with the CDR scheme the consortium of lenders had waived the obligation of the Company to pay any liquidated damages, default or penal interest / interest/further interest charged by the Lenders in excess of the concessional rates approved under CDR package. The effect of such waiver was given in the quarter ended 31 March 2012 and the consequential benefit thereof was included as an exceptional item in that quarter. As a consequence, the results for the quarter and the nine months ended 31 December 2011 had not incorporated the effect of the interest credit received. Management has accordingly, given the effect of the interest credit received amounting to Rs. 656.36 lakhs for the quarter and Rs. 1,165.89 for nine months ended 31 December 2011 in 'Finance cost' by restating the figures for the respective periods. The effect of the adjustments and the impact thereof on the respective periods (as published earlier) is detailed below:
Rs. In Millions
|
Particulars |
Published |
Restated |
||
|
|
Quarter ended |
Nine months ended |
Quarter ended |
Nine months ended |
|
|
Un-audited |
Un-audited |
Un-audited |
Un-audited |
|
|
31.12.2011 |
31.12.2011 |
31.12.2011 |
31.12.2011 |
|
Finance cost |
200.006 |
563.773 |
134.370 |
447.184 |
|
Loss after taxes |
419.379 |
1886.254 |
353.743 |
1769.665 |
|
Earnings per share - Basic |
(1.25) |
(5.63) |
(1.06) |
(5.28) |
|
Earnings per share - Diluted |
(1.25) |
(5.63) |
(1.06) |
(5.28) |
4. Prior period
adjustments:
The result for the quarter and nine months ended 31 December 2011 includes prior period items of Rs. 92.426 Millions and Rs. 95.542 Millions respectively included in other operating income. The same represents income recognised on account of duty credit scrip equivalent to 2% of FOB value of exports (including sales made SEZ units) for the period 27 August 2009 to 30 September 2011 and August 2009 to 31 March 2011 respectively.
The result for the year ended 31 March 2012 included prior period income relating to export benefits for the period 27 August 2009 to 31 March 2011 amounting to Rs.99.978 Millions.
The annual financial results for the year ended 31 March 2012 included prior period relating to Commission expense (included in other expense) incurred for the period 1 May 2010 till 31 March 2011 amounting to Rs.116.393 Millions.
5. The Company has incurred expenses in foreign currency (including amortisation of imported machinery) amounting to Rs. 9618.222 Millions till 31 December 2012. Such machinery and raw material have been imported without payment of customs duty, being an Export Oriented Unit, on the basis of an undertaking given to customs authorities that the Company shall be able to earn a net positive Net Foreign Exchange within ten years from the commencement of its operation. At current quarter end (i.e. after three years of commencement of its operations), the Company's earnings is a negative Net Foreign Exchange Earnings of Rs.2032.155 Millions. Management is confident that they would be able to achieve a positive net foreign exchange during the unexpired period.
6. In view of the absence of virtual certainty of realisation of carry forward tax losses/ unabsorbed depreciation in the foreseeable future, deferred tax assets has been recognised to the extent of deferred tax liability.
7. The Company has only one single primary business segment viz manufacture and sale of Photovoltaic Solar cells. Therefore, the disclosure requirements of Accounting Standard - 17 "Segment Reporting" prescribed by Companies (Accounting Standard) Rules, 2006 are not applicable.
8. IPO proceeds amounting to Rs.1558.055 Millions is paid for acquisition of machineries for Line C, Rs.1437.656 Millions have been utilised towards repayment of loans from banks/ use for the operations of the Company and Rs. 335.824 Millions has been used for meeting IPO expenses. This is in accordance with the manner the IPO proceeds could have been utilised as specified in the prospectus. The balance of the IPO proceeds amounting to Rs. 238.465 Millions pending utilisation, has been invested in interest bearing liquid instruments and bank deposits.
9. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 13 February 2013. The statutory auditors of the Company have carried out a Limited Review of the financial results for the quarter and nine months ended 31 December 2012 and have issued a qualified report with respect of the following matters: Treatment of demurrage charges amounting to Rs.154.327 Millions; Inventory valuation not being in accordance with requirements of AS 2 "Valuation of inventories" and uncertainity relating to whether there exists an impairment as at 31 December 2012 for reasons explained in para 2 above. The same has been filed with the stock exchange and is available on the website of the Company.
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.54.16 |
|
|
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
15 |
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.