MIRA INFORM REPORT
|
Report Date : |
18.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
PIONEER EMBROIDERIES LIMITED |
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Registered
Office : |
Unit 101 B, 1st Floor, Abhishek Premises, Plot No. C5-6, Dalia
Industrial Estate, Off. New Link Road, Andheri (West), Mumbai – 400058,
Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
25.10.1991 |
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Com. Reg. No.: |
11-063752 |
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Capital
Investment / Paid-up Capital : |
Rs. 404.688 Millions |
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CIN No.: [Company Identification
No.] |
L17291MH1991PLC063752 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP15579E |
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PAN No.: [Permanent Account No.] |
AAACP3869R |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in designing and manufacture of embroidery fabrics
and laces. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 5000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record. There
appears some loss during 2012. The reserves seems to be deteriorating. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.
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NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
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Rating |
D (Bank Facilities): D CARE has suspended its rating due to lack of
information. |
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Date |
February, 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.
LOCATIONS
|
Registered Office : |
Unit 101 B, 1st Floor, Abhishek Premises, Plot No. C5-6,
Dalia Industrial Estate, OFF. New Link Road, Andheri (West), Mumbai – 400058,
Maharashtra, India. |
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Tel. No.: |
91-22-66997888/42232323 |
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Fax No.: |
Not Available |
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Email : |
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Website : |
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Corporate Office : |
Unit No. 21 to 25, 2nd Floor, Orient House, 3-A, Udyog Nagar, Off S.V. Road, Goregaon (West), Mumbai - 400 062, Maharashtra, India |
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Factory : |
Embroidery
Plants : Sarigam : 1637, 1638-1639, G.I.D.C. Sarigam, District Valsad, Gujarat, India Naroli : Primer Industrial Estate, Survey No.678/1/2, Village Naroli, Dadra and Nagar Haveli (U.T.), India Coimbatore : Chinnamaddampalayam, Billichi Village, Coimbatore 641 019, Tamilnadu, India Thane: Unit No.1, Vimal House, Dhanji Udyog, Pankar Pafda, Mira Road, Thane, Maharashtra, India Bobbin Lace Plants:
Karad : Survey No. 150/4, Village Karad, Silvassa, Dadra and Nagar Haveli (U.T.), India Coimbatore : Chinnamaddampalayam, Billichi Village, Coimbatore 641 019, Tamilnadu, India |
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Mumbai Sales Office: |
Godown No.l, Rajada Chawl No.2/4, Old Hanuman 2nd Cross
Road, Mumbai - 400 002, Maharashtra, India |
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Tel. No.: |
91-22-6699 7888 |
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Fax No.: |
91-22-2854 6819 |
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E-Mail : |
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Website: |
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Process House : |
1638, GIDC, Sarigam, District Valsad, Gujarat, India. |
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Dope Dyed Plant : |
Village – Kheri, Trilopur Road, Kala – amb, Diatrict Sirmour, Himachal Pradesh – 173030, India |
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Branches Office : |
Located at: Chennai Office Kumbhat Complex, 29 and 30, Ralan Bazar, 3rd Floor, Chennai - 600 003, India Delhi Office 4986, Baratooti Sadar Bazor, 1st Floor, Delhi - 110 006, India NCR Office Plot No. 583, Udyog Vihar, Phase 5, Gurgaon - 122 061, Haryana, India Kolkata Office 14/2, Bangalore Office
: 37/115, 2"JMain Road, Gangadera Layout, 2nd Floor,
Vijaya Nagar, Bangalore-560 040, Karnataka, India Surat Office : Kiran Compound, Near A P Market, Udhna, Surat - 394 210, Gujarat, India |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Raj Kumar Sekhani |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Harsh Vardhan Bassi |
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Designation : |
Executive Director |
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Name : |
Mr. Arvind Ratan Sinha |
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Designation : |
Independent Professional Director |
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Name : |
Mr. Sudatta Mandal |
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Designation : |
Nominee of EXIM Bank |
SHAREHOLDING PATTERN
As on: 31.03.2013
|
Category of Shareholders |
No. of Shares |
Percentage |
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(A) Shareholding of Promoter and Promoter Group |
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2100203 |
11.87 |
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6481726 |
36.62 |
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8581929 |
48.49 |
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Total shareholding of Promoter and Promoter Group (A) |
8581929 |
48.49 |
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(B) Public Shareholding |
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|
900 |
0.01 |
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|
999594 |
5.65 |
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1000494 |
5.65 |
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|
1926597 |
10.89 |
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|
3916134 |
22.13 |
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|
2004264 |
11.32 |
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|
269676 |
1.52 |
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|
49034 |
0.28 |
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|
200441 |
1.13 |
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|
3251 |
0.02 |
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|
16950 |
0.10 |
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|
8116671 |
45.86 |
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Total Public shareholding (B) |
9117165 |
51.51 |
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Total (A)+(B) |
17699094 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
17699094 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in designing and manufacture of embroidery fabrics
and laces. |
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Brand Names : |
Hakoba |
PRODUCTION STATUS (As on 31.03.2011)
|
Licensed Capacity |
Embroidery/Bobbin Lace |
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Process House |
6000 Thousand Meters |
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Dope Dyed Polyester Yarn |
7896 MT |
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Installed Capacity |
Embroidery |
4354 Million Stitches |
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Bobbin Lace |
38903 Thousand Meters |
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Process House |
6000 Thousand Meters |
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Dope Dyed Polyester Yarn |
7200 MT |
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Actual Production |
Embroidery |
1314Million |
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Stitches |
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Bobbin Lace |
13772 Thousand Meters |
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Process House |
2390 Thousand Meters |
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Dope Dyed Polyester Yarn |
8463 MT |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M B A H and Company Chartered Accountants |
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Subsidiaries : |
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Associate Concerns
: |
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Joint Venture : |
Super Industries, DMCC, Dubai |
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Relative of Key
Management Personnel and their Enterprises: |
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CAPITAL STRUCTURE
After: 21.12.2012
Authorised Capital : Rs. 500.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 452.527
Millions
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
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|
20000000 |
Equity Shares |
Rs 10/- each |
Rs. 200.000 Millions |
|
30000000 |
Preference Shares |
Rs 10/- each |
Rs. 300.000 Millions |
|
|
Total |
|
Rs. 500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12915165 |
Equity Shares |
Rs 10/- each |
Rs. 129.152
Millions |
|
27553610 |
9% Optionally Convertible Cumulative Redeemable |
Rs 10/- each |
Rs. 275.536
Millions |
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Total |
|
Rs. 404.688 Millions |
Reconciliation of the
number of shares and amount outstanding at the beginning and at the end of the
financial year:
|
Particular |
Number of shares |
Rs in Millions |
|
Equity Shares |
|
|
|
As at the beginning of the financial year |
12915165 |
129.152 |
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Add : Issued during the year |
- |
- |
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As at the end of the financial year |
12915165 |
129.152 |
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Preference Shares |
|
|
|
As at the beginning of the financial year |
27553610 |
275.536 |
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Add : Issued during the year |
- |
- |
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As at the end of the financial year |
27553610 |
275.536 |
Rights, preferences
and restrictions attached to Equity Shares:
The Company has one class of Equity Shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. in the case of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Rights, preferences
and restrictions attached to Preference Shares:
The Company has one class of Optionally Convertible Cumulative Redeemable Preference Shares having a par value of Rs.10 fully paid up per share issued subsequent to Corporate Debt Restructuring mechanism. The preference shares do not carry voting rights, but are entitled to get the dividend. Each shareholder is entitled to 9% p.a preference dividend effective October 2008. The preference shares are redeemable in 4 annual installments from September 30, 2015. Preference shares are convertible as per the approval of SEBI.
Details of Preference
Shareholding more than 5% in the Company on reporting date:
|
Class of shares /
Name of shareholder |
Number of shares
held |
% holding in that
class of shares |
|
Preference Shares |
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Others |
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|
State Bank of India |
6325000 |
22.96 |
|
Union Bank of India |
5126360 |
18.60 |
|
EXIM Bank |
4998700 |
18.14 |
|
HDFC Bank |
4 263000 |
15.47 |
|
State Bank of Patiala |
3750000 |
13.61 |
|
Corporation Bank |
1 822770 |
6.62 |
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 |
404.688 |
404.688 |
122.082 |
|
|
2] Share Application Money |
96.800 |
96.800 |
29.943 |
|
|
3] Reserves & Surplus |
761.746 |
798.971 |
398.637 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(45.507) |
|
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NETWORTH |
1263.234 |
1300.459 |
505.155 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1182.076 |
1293.541 |
1978.011 |
|
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2] Unsecured Loans |
482.048 |
497.304 |
1067.677 |
|
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TOTAL BORROWING |
1664.124 |
1790.845 |
3045.688 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
2927.358 |
3091.304 |
3550.843 |
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APPLICATION OF FUNDS |
|
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|
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|
|
|
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FIXED ASSETS [Net Block] |
1104.180 |
1107.337 |
1175.324 |
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Capital work-in-progress |
52.013 |
65.335 |
259.439 |
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INVESTMENT |
224.980 |
215.785 |
215.785 |
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|
DEFERREX TAX ASSETS |
185.100 |
181.280 |
177.100 |
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
332.514
|
383.026 |
337.871 |
|
|
Sundry Debtors |
471.511
|
485.087 |
427.732 |
|
|
Cash & Bank Balances |
13.108
|
15.059 |
142.021 |
|
|
Other Current Assets |
21.566
|
17.685 |
0.000 |
|
|
Loans & Advances |
1205.854
|
1202.306 |
1016.076 |
|
Total
Current Assets |
2044.553
|
2103.163 |
1923.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
202.782
|
184.830 |
167.044 |
|
|
Other Current Liabilities |
451.565
|
368.408 |
33.461 |
|
|
Provisions |
29.121
|
28.358 |
0.000 |
|
Total
Current Liabilities |
683.468
|
581.596 |
200.505 |
|
|
Net Current Assets |
1361.085
|
1521.567 |
1723.195 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2927.358 |
3091.304 |
3550.843 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2073.008 |
1781.425 |
778.606 |
|
|
|
Other Income |
224.661 |
108.516 |
160.782 |
|
|
|
TOTAL (A) |
2297.669 |
1889.941 |
939.388 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw Materials Consumed |
1346.313 |
1057.286 |
|
|
|
|
Purchases of Stock-in-Trade |
20.297 |
12.052 |
|
|
|
|
Changes in Inventories |
8.667 |
(3.981) |
|
|
|
|
Employee Benefits Expense |
187.758 |
177.517 |
|
|
|
|
Other Expenses |
423.891 |
385.472 |
|
|
|
|
Exceptional Items |
76.427 |
0.000 |
|
|
|
|
TOTAL (B) |
2063.353 |
1628.346 |
742.388 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
234.316 |
261.595 |
197.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
154.013 |
139.580 |
76.842 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
80.303 |
122.015 |
120.158 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
121.348 |
116.694 |
59.952 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(41.045) |
5.321 |
60.206 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(3.820) |
(4.180) |
1.640 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(37.225) |
9.501 |
58.566 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(36.006) |
(45.507) |
(104.073) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(73.231) |
(36.006) |
(45.507) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Turnover (Net) |
280.133 |
49.007 |
22.997 |
|
|
|
Interest/Service Charges |
29.414 |
29.156 |
15.019 |
|
|
TOTAL EARNINGS |
309.547 |
78.163 |
38.016 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
24.313 |
14.150 |
3.564 |
|
|
|
Stores & Spares |
2.449 |
1.668 |
0.157 |
|
|
|
Capital Goods |
69.210 |
1.028 |
3.023 |
|
|
TOTAL IMPORTS |
95.972 |
16.846 |
6.744 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) Basic Diluted |
(2.88) (2.88) |
0.75 0.37 |
4.80 2.50 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
536.300 |
647.100 |
575.700 |
|
Total Expenditure |
510.900 |
596.200 |
520.800 |
|
PBIDT (Excl OI) |
25.400 |
50.900 |
54.800 |
|
Other Income |
25.100 |
(0.600) |
30.600 |
|
Operating Profit |
50.500 |
50.300 |
85.500 |
|
Interest |
29.500 |
37.500 |
43.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
21.000 |
12.800 |
42.100 |
|
Depreciation |
32.300 |
31.800 |
28.000 |
|
Profit Before Tax |
(11.400) |
(19.000) |
14.100 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(11.400) |
(19.000) |
14.100 |
|
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 |
(11.400) |
(19.000) |
14.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(1.62)
|
0.50 |
6.23 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.98)
|
0.29 |
7.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.30)
|
0.16 |
1.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.03)
|
0.01 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.32
|
1.38 |
6.03 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.99
|
3.62 |
9.59 |
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 |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
YEAR IN RETROSPECT
Profit before Other Income, Finance Costs, Depreciation, Tax and Exceptional Items for the year stood at Rs. 86 082 Millions (Rs.153.079 Millions). However, with high finance costs and depreciation, the Profit before Tax and Exceptional Items for the Company stood at Rs.35.382 Millions (Rs.5.321 Millions) and the Net Loss after providing (deferred) tax, stood at Rs.37.225 Millions (profit of Rs.9.501 Millions).
During the year the Dope Dyed Polyester Yarn (DDPY) business has achieved encouraging topline performance, recording a turnover of Rs.1561.300 Millions (Rs.1247.500 Millions) and an EBIDTA of Rs.112.100 Millions (Rs.164.000 Millions).Although the DDPY business reported increased turnover and decent EBIDTA levels, the margins were under pressure due to high raw material costs on account of high crude prices and unfavorable US Dollar movement. Also in February 2012, a minor fire occurred at the unit, destroying the UPS, which resulted in a production loss for couple of days and additional operational cost for a much longer period on account of diesel purchases, etc. However the assets damaged in fire, were fully insured and have since been reinstated and insurance claim has also been settled.
During the year, the Embroideries and Laces (EL) business has achieved a turnover of Rs.403.100 Millions (Rs.421.700 Millions) and an EBIDTA of Rs.14.200 Millions (Rs.20.100 Millions).
The Embroideries and Laces (EL) business suffered due to overall margin pressure, on account of high operating costs on older equipment, low capacity utilization, high raw materials prices, stiff competition from unorganized sector and severe power shortage in Tamilnadu.
The Company continued its thrust on enhancing R and D capabilities in the DDPY segment and is in the process to expand the installed capacity of DDPY division. The move is with aim to meet increasing market demand and also to achieve strong earning growth supported by volume growth and focusing more on high margin product mix.
Leveraging on the projected growth forecasts, high sales volumes of DDPY and operational flexibility, the Company expects improved operating performance in the coming years.
EXPANSION IN DOPE
DYED POLYESTER YARN DIVISION
The expansion in DDPY capacity from 7,200 TPA to 10,500 TPA was successfully completed during the year and the enhanced capacity became effective from the month of July 2011. The total cost of expansion was about Rs.140.000 Millions and the same was funded through unutilized FCCB funds and internal accruals, while no fresh borrowings were taken for the same. The full benefits of the expansion would be visible in the current year.
The Company is also pursuing addition of value-added equipment at the DDPY unit, which would also enhance the range of its niche product offerings. The Company is in the process of installing Texturising, continuous heat-setting machines, Cabling and Bulking machines to produce Micro Denier High Bulk Yarns. These yarns are specially made for consumption in Bath Mats and High End Carpets as a replacement of Nylon and Cotton Yarns. The company has been working on this project for the last 18 months and with the success of samples, has proposed installation of these machines, which also augur well as a forward integration into Specialised Micro denier FDY.
SUBSIDIARY COMPANIES
The gross sales of the Hakoba Lifestyle Limited in current year stood at Rs.58.600 Millions as compared to Rs.88.000 Millions during previous year. Loss after tax and exceptional item stood at Rs.71.300 Millions as compared to Rs.33.100 Millions during previous year.
The gross sales of Mas Embroideries Private Limited in current year stood at Rs.0.900 Million (Rs.8.800 Millions). The Company has incurred a net profit of Rs.16.300 Millions (basically on account of exceptional income) as compared to net loss of Rs.10.800 Millions in previous year. Due to continuous losses and shortage of funds, the Company had disposed off its assets during the year.
Pioneer Realty Limited had no activity during the year.
S.R Investments Limited has investment holding as a principal activity and has incurred net loss of Rs.0.500 Million (Rs.0.600 Million) excluding service charges payable to the Company. S.R Investment Limited has become 100% subsidiary during June, 2011.
CORPORATE DEBT
RESTRUCTURING
During the year, the Company approached its lenders to rework the earlier restructuring scheme, considering the unfavorable macro environment for the overall Textile business in India. The reworked scheme proposed by the Company, after considering the outcome of various studies done at the behest of the lenders, is under negotiation.
For outstanding FCCBs of USD 11 million, an agreement was entered into with the Bondholders earlier, and the Company is still awaiting a formal settlement on the matter with bond holders for the various modalities as envisaged under the settlement agreement and ongoing communications.
MANAGEMENT DISCUSSION
AND ANALYSIS
Economic Overview with
specific reference to Textile Industry:
Apart from providing one of the basic necessities of life, the textiles industry also plays a pivotal role through its contribution to industrial output, employment generation and the export earnings of the country. Currently, it contributes about 14% to industrial production, 4% to the GDP, and 17% to the country's export earnings. It provides direct employment to over 35 million people, including a substantial number of SC/ST and women. The
Textiles sector is the second largest provider of employment after agriculture.
In the liberalized post-quota period, India has emerged as a major sourcing destination for buyers from all over the globe. As a measure of growing interest in the Indian textiles and clothing sector, a number of reputed houses opened their sourcing / liaison office in India. Commercially the buoyant retailers across the world are looking for options of increasing their sourcing from the Indian markets. Indian manufacturers are also pro-actively working towards enhancing their capacities to fulfill this increased demand.
The Indian Textile Industry continues to remain competitive in the global market vis-ŕ-vis all global players, although China remains a tough adversary despite its own economic pressures impacting its competitiveness. In the global market exports of clothing, India ranked as the sixth largest exporter as per WTO data 2010, trailing Turkey, Bangladesh, Hong Kong, EU-27 and China. In the global exports of Textiles, India ranked as the third largest exporter, trailing EU-27 and China, as per WTO data 2010.
Since August, 2008, the major markets for India's exports of Textiles and Clothing, products viz. USA, EU and Japan have witnessed recessionary conditions and financial crisis, and textiles sector was amongst the worst hit. However these adverse economic conditions appeared to have abated somewhat since 2010.
The organized sector of the Industry continues to grow more vis-ŕ-vis the unorganized sector and this has improved the overall productivity. However, even within the organized segment, several companies have been facing tough operating environment resulting in lower financial performance.
The Government continues to support the industry in surmounting the challenges and imperatives concerning continual modernization and technological up gradation, Product development and R and D, Cost effectiveness and efficiency to face the ever increasing competition emerging out of WTO policies
The Ministry of Textiles has taken various policy initiatives in the last few years to improve the competitiveness of the Indian Textile industry. Various schemes such as Technology Up gradation Fund Scheme (TUFS), Scheme for Integrated Textile Parks, Development of Mega Cluster, Integrated Skill Development Scheme, Technology Mission of Technical Textiles etc. have been launched with the objective of accelerating growth in exports and investment in the textile sector. The Ministry has also embarked on a Plan Scheme namely the Common Compliance Code to prepare and orient the Indian Garment and Apparel Industry towards more socially and environmentally compliant Industrial environment of globally acceptable standard.
The industry may also benefit if the opportunity for increase inflow of FDI in the textile and the retail sector is realized, however there is a need for more policy initiatives by the government, particularly in the area of labour policies, availability of trained man power and availability of power at that too at competitive price.
Embroidery Business:
The Company, which entered the business in 1991-92, continues to be one of the largest organized players in the embroideries and laces segment in India, and has many firsts to its credit. It currently,
- has one of the largest capacities for embroidered fabrics in India.
- is the largest manufacturer of Braided Laces in the India.
- is a pioneer in bringing branding to an ancillary business like embroidery.
The Indian embroidery market continues to be dominated by a large number of unorganized players in view of low entry barriers. However, the company is well-entrenched because of its strengths of product development, quality and manufacturing capability.
Broad classification of Embroidery products and their usage are given below:
|
All over fabric |
These are marketed as ladies dress materials, kurtas, sheeting and sarees and find key usage by the Garment manufacturers. |
|
Laces/Edgings |
Widely used for dresses, gown, children's garments and ladies
undergarments. Cotton and chemical laces are popular in the Fashion industry. |
|
Motifs, Guipure, Collars |
These are also used in ladies dresses, gowns and
children's garments. These are mostly preferred' in the International markets |
|
Quilts |
These are decorative made of cotton, wool, etc. and
stiched keep the filling in place. These home textile segment. two layers of
cloth filled with together in lines or patterns to find high usage in
beddings in the home textile segment. |
The Company's product range includes the above products except Quilts.
During the year ended 31st March, 2012 products like embroidered fabrics continued to remain under severe price pressure. Due to falling demand from Western Europe and USA, one of the largest consumers of garments in the world, Indian garment exporters faced tremendous competitive pressure on pricing which in turn affected the embroidery market and focus further shifted to lower cost - lower realization products. However with the revival in the international markets the Company is confident of recouping the lost opportunities.
The Company's sales were short by about 25% of the projected Sales as envisaged for the year in view of pressure in the domestic market arising out of increased price of cotton yarn and fabric in particular that translated into increase product cost. This is apparent from the fact that while the gap in sales is about 25% the production was short of target by nearly 48%. Liquidity and shortage of working capital was also one of the reasons that impacted capacity utilization as well as margins since the Company had to resort to outsourced production. Also, the Company needs to modernize its embroidery equipment as the capacities, lower speed, capacity utilization, labor requirement and maintenance of older machines is affecting both production and efficiencies of the segment.
Braided Laces:
The Braided laces segment, also being driven by fashion trends as in case of like embroidery and rather more significantly aligned to the fortunes of the Garment exports continued to remain under pressure due to the slow down in international consumption of garments besides paucity of working capital for servicing the credit intensive domestic industry. Thus the capacity utilization was quite lower than planned, falling short by over 59% and resulting in underachievement of sales target by about 37%. The company is putting together a reorganization plan for this business which will include scrapping old machines and consolidating capacities at fewer locations to reduce overheads and improve profitability.
Polyester Dope Dyed
Yarn:
During the previous year, the Company has undertaken expansion of its capacities at its Polyester Dope Dyed yarn factory in Kalamb and the same has successfully gone on stream in July 2011. The company is running at near 100% capacity utilization at the expanded capacity of about 10,500 TPA, enhanced from 7,200 TPA earlier.
Dope Dyed Polyester Yarn (DDPY) was severely impacted in the early phase of the project in view of the oil crisis, but has subsequently emerged as a star performer over the years, running beyond its target capacity. The business has also now got a firm foot hold in the lucrative export markets including the highly quality-conscious European market. The projected sales have been surpassed by a astounding 192% and YOY sales has grown by
25%, although the PBIDT margin has been under pressure due to shortage of working capital from the lenders on the expanded capacity.
However, the unit has not reached its true potential for the value-added product lines like twisting, doubling and air texturing of yarns, as some more investments are to be made in installing need-based value-added equipment. On making such investments, the unit's profitability is expected to increase notably.
Spun Yarn Business:
The Company has utilized the production facilities of the spinning mill, but due to severe power shortage in Tamilnadu the capacity utilization continues to falter. The unit has maintained its capacity utilization in the financial year 2011-12 close to previous year levels. However with depressed market demand for spun yarns the EBIDTA for the year took a severe beating and unfortunately it is the only business segment with negative EBIDTA. The shortfall in full capacity utilization will continue to be a concern, and the Company is considering some strategic initiatives for the business which if not successful, the company may even consider exiting the business.
Restructuring Scheme
:
The Company has tried to implement the earlier restructuring scheme, but the worsening macro environment made it difficult to continue servicing of existing debt in compliance to all lenders' conditions and caveats. The Company has however settled the dues of unsecured lenders in terms of CDR package and efforts are being made to arrange payments as per settlements arrived with them including settlement of balance outstanding FCCB bonds to the tune of US$11 million. The Company has approached its lenders to rework the earlier restructuring scheme, considering the unfavorable macro environment for the overall Textile business in India. The reworked scheme along with reorganization of the business proposed by the Company, after considering the outcome of various studies done at the behest of the lenders, is under negotiation.
The Company is hopeful that the reorganization plans will lead to improvement in performance and fully restore its past track record of profitability.
Financial Overview:
Revenue of the Company, for the year ended 31st March, 2012 was Rs.2073.000 Millions. This represents about 16% increase over the revenue for the previous financial year. This increase has been due to exceptional growth in the DDPY business as well as recovery in revenues demonstrated by all other businesses of the Company compared to previous year.
Profits:
Profit before other income, finance costs, depreciation, tax and exceptional items for the year stood at Rs.86.082 Millions as against Rs.153.079 Millions for the previous financial year reflecting the stress in the various business segments of the Company. Net loss after tax stood at Rs.37.225 Millions as against profit of Rs.9.501 Millions for the previous financial year.
STATEMENT OF UNAUDITED (STANDALONE) FINANCIAL RESULTS FOR THE QUARTER
AND SIX MONTHS ENDED 30.09.2012
(Rs in Millions)
|
Sr. No. |
Particulars |
Quarter Ended |
Half Year Ended |
|
|
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1. |
Income from
Operations |
|
|
|
|
|
a) Net Sales/Income from Operations (net of excise duty) |
640.194 |
533.345 |
1173.539 |
|
|
b) Other Operating Income |
6.928 |
2.822 |
9.750 |
|
|
Total Income from
Operations (net) |
647.122 |
536.167 |
1183.289 |
|
2. |
Expenses |
|
|
|
|
|
a) Cost of Material Consumed |
420.859 |
363.136 |
783.995 |
|
|
b) Purchase of Stock in Trade |
9.741 |
7.055 |
16.796 |
|
|
c) Changes in Inventories of Finished Goods, Work-in-Progress and in Stock in trade |
(13.475) |
(23.621) |
(37.096) |
|
|
d) Employee Benefit Expense |
50.161 |
48.198 |
98.359 |
|
|
e) Depreciation and Amortization Expense |
31.829 |
32.299 |
64.128 |
|
|
f) Other Expense |
128.947 |
116.116 |
245.063 |
|
|
Total Expenses |
628.062 |
543.183 |
1171.245 |
|
3. |
Profit/(Loss) from Operations before Other Income, Finance Costs and Exceptional Items (1-2) |
19.060 |
(7.016) |
12.044 |
|
4. |
Other Income |
(0.555) |
31.459 |
30.904 |
|
5. |
Profit/(Loss) from Ordinary Activities before Finance Cots and Exceptional Items (3+4) |
18.505 |
24.443 |
42.948 |
|
6. |
Finance Costs |
37.503 |
35.799 |
73.302 |
|
7. |
Profit/(Loss) from Ordinary Activities after Finance Costs but before Exceptional Items (5-6) |
(18.998) |
(11.356) |
(30.354) |
|
8. |
Exceptional Items: Income/(Loss) net |
- |
- |
- |
|
9. |
Profit/ (Loss) from
Ordinary Activities before tax (7+8) |
(18.998) |
(11.356) |
(30.354) |
|
10. |
Tax Expense |
- |
- |
- |
|
11. |
Profit/ (Loss) from Ordinary Activities after tax (9-10) |
(18.998) |
(11.356) |
(30.354) |
|
12. |
Extraordinary Items |
- |
|
- |
|
13. |
Net Profit/(Loss)
for the period (11-12) |
(18.998) |
(11.356) |
(30.354) |
|
14. |
Paid-up Equity Share Capital Face Value: Rs. 10 Per Share |
129.152 |
129.152 |
129.152 |
|
15. |
Reserves excluding revaluation reserves (as per last audited balance sheet) |
|
|
_ |
|
16. |
Earning Per Share (Rs.) (Not annualized) a) Basic before/after Extraordinary Item b) Diluted before/after Extraordinary Item |
(1.47) (1.47) |
(0.88) (0.88) |
(2.35) (2.35) |
|
Sr. No. |
Particulars |
Quarter Ended |
Half Year Ended |
|
|
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1. |
Public Shareholding |
|
|
|
|
|
-No. of Shares |
91,17,165 |
87,62,470 |
91,17,165 |
|
|
-Percentage of Shareholding |
70.59% |
67.85% |
70.59% |
|
2. |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered - Number of shares |
21,48,847 |
2,503,542 |
21,48,847 |
|
|
- Percentage of shares (as a % of the total shareholding of the promoter and promoter group) |
56.58% |
60.29% |
56.58% |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
16.64% |
19.38% |
16.64% |
|
|
b) Non-encumbered - Number of shares |
1,649,153 |
1,649,153 |
1,649,153 |
|
|
- Percentage of shares (as a % of the total shareholding of the promoter and promoter group) |
43.42% |
39.71% |
43.42% |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
12.77% |
12.77% |
12.77% |
|
|
Particulars |
3 months ended (30-09-2012) |
|
B |
Investor Complaint |
Nil |
|
|
Pending at the beginning of the quarter |
4 |
|
|
Received during the quarter |
4 |
|
|
Disposed of during the quarter |
|
|
|
Remaining unresolved at the end of the quarter |
|
STATEMENT OF ASSETS AND LIABILITIES AS AT 30th SEPTEMBER,
2012
(Rs in Millions)
|
|
Particulars |
As at 30.09.2012 (Unaudited) |
|
A |
Equities and
Liabilities |
|
|
1 |
Shareholders' Funds |
|
|
|
a) Share Capital |
404.688 |
|
|
b) Reserves and Surplus |
729.617 |
|
|
Sub-Total-Shareholders'
Funds |
1134.305 |
|
2 |
Share Application Money pending allotment |
96.800 |
|
3 |
Non-Current
Liabilities |
|
|
|
a) Long-Term Borrowings |
1121.585 |
|
|
Sub-Total-Non-Current
Liabilities |
1121.585 |
|
4 |
Current Liabilities |
|
|
|
a) Short-Term Borrowings |
461.341 |
|
|
b) Trade Payables |
267.632 |
|
|
c) Other Current Liabilities |
580.807 |
|
|
d) Short-Term Provisions |
29.278 |
|
|
Sub-Total-Current
Liabilities |
1339.058 |
|
|
Total Equities and
Liabilities |
3691.748 |
|
B |
Assets |
|
|
1 |
Non-Current Assets |
|
|
|
a) Fixed Assets |
1110.285 |
|
|
b) Non-Current Investments |
265.977 |
|
|
c) Deferred Tax Assets (Net) |
185.100 |
|
|
d) Long-Term Loans and Advances |
265.659 |
|
|
e) Other Non Current Assets |
4.010 |
|
|
Sub-Total-Non-Current
Assets |
1831.031 |
|
2 |
Current Assets |
|
|
|
a) Current Investments |
3.000 |
|
|
b) Inventories |
371.245 |
|
|
c) Trade Receivables |
502.166 |
|
|
d) Cash and Bank Equivalent |
38.316 |
|
|
e) Short-Term Loans and Advances |
941.346 |
|
|
f) Other Current Assets |
4.644 |
|
|
Sub-Total-Current Assets |
1860.717 |
|
|
Total-Assets |
3691.748 |
- The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors of the Company at their meeting held on 09lhNovember, 2012. The Statutory Auditors have carried out a limited review of the above Financial Results.
- As reported earlier about rework of existing CDR Scheme, the lenders had appointed agencies to conduct various studies, and the reports are under evaluation by the lenders.
- The Company is engaged in production of textile products having integrated working. For management purpose, Company is organized into one major operating activity of the textile products. Accordingly the Company is of the view that it has only single business segment.
- The above results are on a stand-alone basis and do not include results of Subsidiaries of the Company.
- Provision for Deferred Tax for the period would be considered in the Annual Audited Accounts for the year and no regular tax liability is considered in view of losses.
- The outstanding FCCBs as at 30"1 September, 2012 is US $ 11 mn. The liability on account of foreign exchange loss arising out of revaluation towards outstanding FCCB as on SO01 September, 2012 and premium/interest thereon has not been accounted for as same is under negotiation for settlement,
- The previous period/year figures are regrouped and reclassified wherever necessary to make them comparable with those of the current period.
CONTINGENT
LIABILITIES
(Rs in Millions)
|
Particular |
31.03.2012 |
31.03.2011 |
|
Bank Guarantees Outstanding. |
3.937 |
96.27 |
|
Corporate Guarantees on behalf of Subsidiary to Banks. |
305.000 |
3,050.00 |
|
Estimated amount of contracts remaining to be executed on Capital Accounts (Net of advances). |
16.696 |
99.78 |
|
Assessment Order of Customs Duty for Import of second hand computerised embroidery machines for which appeal has been filed with Honorable Supreme Court. |
4.690 |
46.90 |
|
Demand raised by Excise Department in respect of which appeal has been filed. |
4.614 |
46.14 |
|
Demand raised by Income-tax Department in Block Assessment order U/s 158A for the period from FY 1998-99 to FY 2003-04 in respect of which appeal has been filed with CIT (Appeal). |
4.332 |
53.07 |
|
Other Income Tax matters pending in appeal. |
1.333 |
13.33 |
|
Premium/Interest on Foreign Currency Convertible Bond. |
258.874 |
1,730.77 |
|
Unpaid Dividend on 9% Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS). |
86.794 |
619.96 |
|
Custom Duty on Capital Goods and Raw Materials imported under Advance Licence / EPCG Scheme, against which export obligation is to be fulfilled. |
77.198 |
1,312.71 |
|
Service Tax Liability on rented property pending high court decision. |
- |
0.489 |
|
Demand raised by Bennet Coleman & Co Ltd for converting equity options into debt of subsidiary for which arbitration proceedings are pending. |
105.900 |
- |
|
There are some Labour Cases in Labour Court and Industrial Court regarding overtime, backwages and reinstatement to which the Company is contesting. Quantum is not ascertainable |
N A |
N A |
FIXED ASSETS
- Land
- Buildings
- Plant and Machineries
- Furniture and Fixtures
- Vehicles
- Office Equipments
- Computers
- Electrical Installations
- Borewell
WEBSITE DETAILS
True to their name, Pioneer Embroideries Limited, they have grown from modest beginnings in 1991 to become India's largest manufacturer-exporter of Embroideries, Torchon/Bobbin laces, Raschel laces and other garment accessories in India. They are also the proud owners of the no. 1 retail brand for embroidered clothing "Hakoba". A clear vision along with focus on quality, creativity and innovation has resulted in this spectacular, trail-blazing success (largest retail chain for embroidered products).
With an outstanding operational infrastructure, superb craftsmanship and obsession for the best quality, it has not taken them long to create waves in the international market. Today we have established an impeccable reputation and carved a permanent niche in the industry throughout the world. Our impressive international roster includes clients from the North America, Latin America, Europe, the Middle East and Africa. Pioneer is also the largest player in the domestic market. Catering to millions of satisfied customers already, Pioneer Group is now poised to move ahead in leaps and bounds.
They have a qualified and highly motivated design development team, which is constantly working towards generating new design to match the latest trends across the globe. State-of-the-art software and machines are used with trained personnel for monitoring the output, matching it to our own high and exacting standards. They are constantly working on developing new lines that matches the design specifications and requirements of our new clients. Today we have over 40,000 designs in our library to select from and just in case you have some exclusive taste
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. 54.89 |
|
|
1 |
Rs. 83.66 |
|
Euro |
1 |
Rs. 70.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ/ UDS |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
27 |
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.