MIRA
INFORM REPORT
|
Report Date : |
20.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
NANDAN DENIM LIMITED |
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Formerly Known
As : |
NANDAN EXIM LIMITED |
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Registered
Office : |
Survey No. 198/1, 203/2, Saijpur-Gopalpur, Pirana Road, Piplej, Ahmedabad – 382405, Gujarat |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
09.08.1994 |
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Com. Reg. No.: |
04-022719 |
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Capital
Investment / Paid-up Capital : |
Rs.455.491 Millions |
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CIN No.: [Company Identification
No.] |
L51909GJ1994PLC022719 |
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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 Textile Industry. |
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No. of Employees
: |
20000 Group (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 7340000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Exist |
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Comments : |
Subject is a part of THE CHIRIPAL GROUP. It is an established company having satisfactory track record. The ratings reflect the company’s established business profile, marked
by healthy revenue growth, consistent capacity addition, established
distribution channel, and extensive experience of the promoters in the
domestic denim industry. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic
product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces
a 119 year old registration. The Securities and Exchange Board of India has
approved the trading of currency futures on the Bombay Stock Exchange. The
exchange plans to launch the currency futures platform with advanced trading
technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
BBB+ (Long Term Rating) |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
September 30, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A2 (Short Term Rating) |
|
Rating Explanation |
Strong degree of safety and low credit risk.
|
|
Date |
September 30, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management Non Co-operative (91-79-26734660)
LOCATIONS
|
Registered Office/ Factory : |
Survey No. 198/1, 203/2, Saijpur-Gopalpur, Pirana Road,
Piplej, Ahmedabad – 382405, Gujarat, India |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
“Chiripal House”, Shivranjani Cross Roads, Satellite, Ahmedabad – 380015, Gujarat, India |
|
Tel. No.: |
91-79-26734660-2-3 |
|
Fax No.: |
91-79-26768656 |
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E-Mail : |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Vedprakash D. Chiripal |
|
Designation : |
Chairman |
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|
Name : |
Mr. Brijmohan D. Chiripal |
|
Designation : |
Managing Director |
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|
Name : |
Mr. T.S. Bhattacharya |
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Designation : |
Director |
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Name : |
Mr. Gautam C. Gandhi |
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Designation : |
Director |
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|
Name : |
Mr. Ambalal C. Patel |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Deepak J. Chiripal |
|
Designation : |
Chief Executive Officer |
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|
Name : |
Ms. Purvee D. Roy |
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Designation : |
Company Secretary |
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AUDIT COMMITTEE : |
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|
Name : |
Mr. Ambalal C. Patel |
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Designation : |
Chairman |
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|
Name : |
Mr. Vedprakash D. Chiripal |
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Designation : |
Member |
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Name : |
Mr. Gautam C. Gandhi |
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Designation : |
Member |
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REMUNERATION
COMMITTEE : |
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|
Name : |
Mr. Ambalal C. Patel |
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Designation : |
Chairman |
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Name : |
Mr. Vedprakash D. Chiripal |
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Designation : |
Member |
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SHAREHOLDERS GRIEVANCE
COMMITTEE : |
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|
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|
Name : |
Mr. Ambalal C. Patel |
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Designation : |
Member |
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|
Name : |
Mr. Vedprakash D. Chiripal |
|
Designation : |
Member |
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|
|
|
Name : |
Mr. Gautam C. Gandhi |
|
Designation : |
Chairman |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2013
|
Category of Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
5534302 |
12.15 |
|
|
20875067 |
45.83 |
|
|
26409369 |
57.98 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
26409369 |
57.98 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5500 |
0.01 |
|
|
2031814 |
4.46 |
|
|
2037314 |
4.47 |
|
|
|
|
|
|
5895748 |
12.94 |
|
|
|
|
|
|
8612739 |
18.91 |
|
|
1730816 |
3.80 |
|
|
863070 |
1.89 |
|
|
863070 |
1.89 |
|
|
17102373 |
37.55 |
|
Total Public
shareholding (B) |
19139687 |
42.02 |
|
Total (A)+(B) |
45549056 |
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) |
45549056 |
0.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the Shareholder |
Details of Shares held |
Encumbered shares (*) |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|||
|
No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
No |
As a percentage |
As a % of |
|
||
|
1 |
Chiripal Industries Limited |
11844270 |
26.00 |
10490000 |
88.57 |
23.03 |
26.00 |
|
2 |
Chiripal Exim LLP |
7008979 |
15.39 |
0 |
0.00 |
0.00 |
15.39 |
|
3 |
Brij Mohan D Chiripal |
2780000 |
6.10 |
0 |
0.00 |
0.00 |
6.10 |
|
4 |
Devkinandan Corporation LLP |
1774818 |
3.90 |
0 |
0.00 |
0.00 |
3.90 |
|
5 |
Urmiladevi J Agarwal |
631802 |
1.39 |
630000 |
99.71 |
1.38 |
1.39 |
|
6 |
Jyoti Prasad D Agarwal |
630000 |
1.38 |
630000 |
100.00 |
1.38 |
1.38 |
|
7 |
Jay Prakash D Agarwal |
630000 |
1.38 |
630000 |
100.00 |
1.38 |
1.38 |
|
8 |
Nishi J Agarwal |
480000 |
1.05 |
480000 |
100.00 |
1.05 |
1.05 |
|
9 |
Vedprakash Devkinandan Chiripal |
252500 |
0.55 |
0 |
0.00 |
0.00 |
0.55 |
|
10 |
Chiripal Textile Mills Private Limited |
247000 |
0.54 |
0 |
0.00 |
0.00 |
0.54 |
|
11 |
Deepak J Agrawal |
130000 |
0.29 |
130000 |
100.00 |
0.29 |
0.29 |
|
|
Total |
26409369 |
57.98 |
12990000 |
49.19 |
28.52 |
57.98 |
(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
1 |
Orange Mauritius Investments Limited |
2031814 |
4.46 |
4.46 |
|
|
2 |
Tripoli Management Private Limited |
1478952 |
3.25 |
3.25 |
|
|
3 |
Hexa International Private Limited |
984792 |
2.16 |
2.16 |
|
|
4 |
Monil Chiripal |
745207 |
1.64 |
1.64 |
|
|
5 |
Bhavna Textiles Private Limited |
662097 |
1.45 |
1.45 |
|
|
6 |
Vijay Subham Contrade Private Limited |
566068 |
1.24 |
1.24 |
|
|
|
Total |
6468930 |
14.20 |
14.20 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Textile Industry. |
GENERAL INFORMATION
|
No. of Employees : |
20000 Group (Approximately) |
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Bankers : |
· State Bank of India · State Bank of Hyderabad · Syndicate Bank · Oriental Bank of Commerce · State Bank of Travancore · United Bank of India · Karur Vysya Bank · Bank of Maharashtra · UCO Bank · Dena Bank · Laxmi Vilas Bank · Central Bank of India ·
The Saraswat Co-Operative Bank Limited |
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Facilities : |
(Rs.
In Millions)
Notes: Security: *-** Term Loans and Buyers Credit arrangements under Consortium finance are secured by first charge on the entire Fixed Assets of the company both present and future, second charge on Book Debts, Stock and other Current Assets of the Company and also further guaranted by personal guarantee of promoter directors. *** Corporate Loan is secured by subservient charge on fixed and current assets of the company and also by way of pledge of equity shares of the company belonging to directors and personal guarantee of promoter directors. **** Vehicle Loans are secured by Hypothication of Vehicles. Interest: * Term Loans carry an interest rate which shall be State Bank of India rate or the base rate of the respective rupee lender plus the spread,which ever is higher, payable on monthly basis. ** Buyers Credit arrangements for a period upto 180 days carry an interest rate ranging between in case of 6ML Libor+80 basis points to 6ML Libor+350 basis points and for a period more than 180 days carry an interest rate of 12ML Libor+95 basis points. *** Corporate Loan carry an interest rate 13.50 % p. a. payable on monthly basis. **** Vehicle Loans carry an interest rate ranging between 10.38% to 12.96% p.a. Repayment: * Term Loan (including Buyer’s Credit arrangements) are repayable in Quarterly installments as follows:- (Rs. In Millions)
** Buyers Credit arrangement are available for 180 days/360 Days with roll over option upto 3 years from date of sanction and on the completion of the same it will be converted into Term Loans. *** Corporate Loan is repayable in Monthly installments as follows:- (Rs. In Millions)
**** Vehicle Loans are repayable in following schedule in monthly installments as follows:- (Rs. In Millions)
Security : @ Working Capital loans under consortium finance are secured by first charge on Book Debts, Stocks and other Current Assets and second charge on all the Fixed Assets both present and future of the Company and also further guaranted by some of the Directors. |
|
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
J.T. Shah and Company Chartered Accountants |
|
Address : |
201/202, Lalita Complex, Nr. Mithakhali Cross Roads, Navrangpura, Ahmedabad – 380009, Gujarat, India |
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|
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|
List of Other
Related Parties with whom transactions have taken place during the year : |
· Shanti Exports Private Limited · Chiripal Poly Film Limited · Chiripal Industries Limited · Chiripal Charitable Trust · Shanti Educational Initiatives Limited · Chiripal Lifestyle Limited · Nandan Chiripal Energy Corporation LLP · Vishal Fabrics Private Limited · Chiripal Infrastructure Limited · Nandan Industries Private Limited · CIL Nova Petrochemicals Limited · Chiripal Textile Mills Private Limited ·
Chiripal Exim LLP |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
45549056 |
Equity Shares |
Rs.10/- each |
Rs.455.491 Millions |
|
|
|
|
|
Refer Note Number 41
for details of basic and diluted shares
The company has only One class of shares referred to as Equity shares having face value of Rs.10/-. Each Holder of One share is entitled to One vote per share.
During the year ended on 31st March 2013, the amount per share dividend recognised as distributions to Equity Share holders was Rs.1.20/- (P.Y. Rs. 1/-)
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.
The details of
shareholders holding more than 5% shares as at 31.03.2013 and 31.0302012 is set
out below.
|
Name of Shareholder |
As at 31.03.2013 |
|
|
|
No. of Shares |
% held |
|
Chiripal Industries Limited |
11844270 |
26.00% |
|
Chiripal Exim LLP |
7008979 |
15.39% |
|
Brijmohan D. Chiripal |
2780000 |
6.10% |
The Reconcilliation of
the number of shares outstanding and the amount of share capital as at
31.03.2013 and 31.0302012 is set out below
|
Name of Shareholder |
As at 31.03.2013 |
|
|
|
No. of Shares |
Rs. In Millions |
|
Shares at the beginning of Face Value of Rs. 10 (P.Y. Rs. 1) |
45549056 |
455.491 |
|
Cancellation of Share of Face Value of Rs. 1 on Consolidation of Shares |
Nil |
Nil |
|
Reduction in Number of Shares upon Consolidation of Equity Shares of Rs.1 in to Equity Shares of Rs.10 each |
Nil |
Nil |
|
Shares at the end of Face Value of Rs. 10 |
45549056 |
455.491 |
Aggregate No. of 151830188 Shares of Face Value of Rs.1 were (Now reduced to 15183019 Shares of Rs.10) issued in the year 2006-07 as Bonus.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
455.491 |
455.491 |
455.491 |
|
(b) Reserves & Surplus |
1380.421 |
1133.837 |
998.842 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
1835.912 |
1589.328 |
1454.333 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
2650.862 |
1869.067 |
1522.962 |
|
(b) Deferred tax liabilities (Net) |
175.167 |
202.713 |
187.713 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.242 |
0.000 |
0.993 |
|
Total Non-current
Liabilities (3) |
2826.271 |
2071.780 |
1711.668 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
1003.890 |
672.687 |
784.028 |
|
(b) Trade payables |
458.042 |
344.735 |
457.366 |
|
(c) Other current liabilities |
585.898 |
518.340 |
525.771 |
|
(d) Short-term provisions |
64.368 |
62.828 |
4.490 |
|
Total Current
Liabilities (4) |
2112.198 |
1598.590 |
1771.655 |
|
|
|
|
|
|
TOTAL |
6774.381 |
5259.698 |
4937.656 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3408.172 |
3007.205 |
2657.018 |
|
(ii) Intangible Assets |
3.772 |
6.561 |
7.240 |
|
(iii) Capital work-in-progress |
540.615 |
46.678 |
145.512 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
3.675 |
2.778 |
34.064 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
144.123 |
149.073 |
38.541 |
|
(e) Other Non-current assets |
30.150 |
46.286 |
8.833 |
|
Total Non-Current
Assets |
4130.507 |
3258.581 |
2891.208 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1197.609 |
984.155 |
1213.164 |
|
(c) Trade receivables |
911.750 |
694.740 |
550.112 |
|
(d) Cash and cash equivalents |
199.281 |
155.015 |
69.152 |
|
(e) Short-term loans and advances |
335.234 |
167.207 |
214.020 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current
Assets |
2643.874 |
2001.117 |
2046.448 |
|
|
|
|
|
|
TOTAL |
6774.381 |
5259.698 |
4937.656 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7031.208 |
5738.387 |
5073.963 |
|
|
|
Other Income |
15.265 |
5.424 |
2.561 |
|
|
|
TOTAL (A) |
7046.473 |
5743.811 |
5076.524 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4634.349 |
3440.978 |
3203.551 |
|
|
|
Purchase of Stock in Trade |
620.370 |
578.739 |
733.728 |
|
|
|
Change in Inventories of Finished Goods, Work in Progress and Stock in Trade |
(375.856) |
70.566 |
(162.055) |
|
|
|
Employee Benefits Expense |
254.425 |
192.261 |
147.035 |
|
|
|
Other Expenses |
828.789 |
629.976 |
472.789 |
|
|
|
Exceptional Items |
0.000 |
(42.751) |
0.000 |
|
|
|
TOTAL (B) |
5962.077 |
4869.769 |
4395.048 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1084.396 |
874.042 |
681.476 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
317.626 |
278.419 |
168.489 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
766.770 |
595.623 |
512.987 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
409.174 |
332.589 |
253.605 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
357.596 |
263.034 |
259.382 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
47.064 |
75.101 |
85.928 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
310.532 |
187.933 |
173.454 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Final Dividend (12% i.e. Rs. 1.20/- per share) |
54.700 |
45.500 |
0.000 |
|
|
|
Corporate Dividend Tax (including cess and surcharge) |
9.300 |
7.400 |
0.000 |
|
|
|
General Reserves |
7.800 |
4.700 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
310.500 |
187.900 |
173.454 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
773.109 |
552.108 |
568.547 |
|
|
TOTAL EARNINGS |
773.109 |
552.108 |
568.547 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
144.455 |
98.588 |
52.637 |
|
|
|
Trading Goods |
0.000 |
39.001 |
0.000 |
|
|
|
Stores & Spares |
1.326 |
18.248 |
0.000 |
|
|
|
Capital Goods |
604.749 |
244.046 |
67.019 |
|
|
TOTAL IMPORTS |
750.530 |
399.883 |
119.656 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
6.82 |
4.13 |
3.81 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.41 |
3.27 |
3.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.09 |
4.58 |
5.11 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.74 |
5.05 |
5.45 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19 |
0.17 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.99 |
1.60 |
1.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.25 |
1.25 |
1.16 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT
MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE
|
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
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 |
|
LITIGATION
DETAILS |
|
HIGH COURT OF GUJARAT |
|
TAX APPEAL No. 879 of 2008 |
|
|
|
|
|
Status : PENDING |
( Converted from : ST/1872/2008 ) |
CCIN No : 001092200800879 |
|
|
||||
|
|
|
S.NO. |
Name of the Petitioner |
Advocate On Record |
|
1 |
COMMISSIONER OF INCOME TAX-III |
MS PAURAMI B SHETH for: Appellant(s) |
1|
S.NO. |
Name of the Respondant |
Advocate On Record |
|
1 |
NANDAN EXIM PVT. LTD., |
RULE UNSERVED for :Opponent(s) |
|
|
|||
|
Presented On |
: 13/05/2008 |
Registered On |
: 13/05/2008 |
|
Bench Category |
: SINGLE BENCH |
District |
: AHMEDABAD |
|
Case Originated From |
: THROUGH ADVOCATE |
Listed |
: 5 times |
|
StageName |
: TAX APPEALS - GROUP D MATTERS |
||
|
|
|
|
Act |
INCOME-TAX ACT, 1961 |
|
Office Details |
|
S. No. |
Filing Date |
Document Name |
Advocate Name |
Court Fee on Document |
Document Details |
|
1 |
15/08/2008 |
VAKALATNAMA |
MS PAURAMI B SHETH ADVOCATE |
- |
MS PAURAMI B SHETH:1 |
|
2 |
15/08/2008 |
DOCUMENT |
RULE UNSERVED |
- |
RULE UNSERVED:1 |
|
3 |
14/05/2012 |
APPEARANCE NOTE |
MS PAURAMI B SHETH ADVOCATE |
- |
MS PAURAMI B SHETH:1 |
|
Court Proceedings |
|||||
|
S. No. |
Notified Date |
CourtCode |
Board Sr. No. |
Stage |
Action |
Coram |
|
1 |
05/02/2009 |
10 |
- |
WARNED LIST - TAX APPEAL |
NEXT DATE |
HONOURABLE THE CHIEF JUSTICE MR. K.S.RADHAKRISHNAN HONOURABLE MR.JUSTICE AKIL KURESHI |
|
2 |
17/08/2011 |
10 |
- |
TAX APPEALS - GROUP D MATTERS |
FIXED RULE / ADMIT |
HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI |
|
Available Orders |
||||||
|
S. No. |
Case Details |
Judge Name |
Order Date |
CAV |
Judgment/Order |
Download |
|
1 |
TAX APPEAL/879/2008 |
HONOURABLE THE CHIEF JUSTICE MR. K.S.RADHAKRISHNAN HONOURABLE MR.JUSTICE AKIL KURESHI |
18/03/2009 |
N |
ORDER |
Download |
|
Certified Copy |
||||||
|
S. No. |
ApplicantName |
ApplicationType |
Application Date |
UOL Number |
Order Date |
Notify Date |
Delivery Date |
Status |
Nature Of Document |
|
1 |
MRS MAUNA M BHATT |
ORDINARY |
19/03/2009 |
O/7482/2009 |
18/03/2009 |
23/03/2009 |
24/03/2009 |
Delivered |
ORDER |
PERFORMANCE:
During the year, the Company has achieved a record turnover of Rs. 7031.200 Millions as against Rs. 5738.400 Millions for the previous financial year registering a rise of 22.52 percentage.
The profit before tax (after interest and depreciation charges) during the year was Rs. 357.600 Millions as compared to previous years figure of Rs. 220.300 Millions. The Net Profit during the year 2012-13 was Rs. 310.500 Millions as compared to previous year figure of Rs. 187.900 Millions which shows the increase of 65.23 percentage. The Directors would like to inform that the Company is implementing the expansion projects by increasing its production capacity continuously in order to grab the increase in demand for the denim fabrics in the domestic and international market and thereby increasing its volume and activities in its field. Further the Company has targeted to achieve high volume in the terms of quantity and value and also adding the capacity to improve its performance and thereby its share in the market. The Company expects to achieve very excellent performance during the current year.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
Indian Textile
Industry
Indian Textile Industry is one of the leading textile industries in the world. Though it was predominantly unorganized industry few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much needed thrust to the Indian Textile Industry, which has now successfully become one of the largest in the world.
Indian Textile Industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. Indian Textile Industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. Indian Textile Industry currently generates employment to more than 35 million people.
Indian Textile Industry can be divided into several segments, some of which can be listed as below:
• Cotton Textiles
• Silk Textiles
• Woolen Textiles
• Readymade Garments
• Hand-crafted Textiles
• Jute and Coir
CURRENT SCENERIO
The Indian Textiles Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textiles industry also plays a vital role through its contribution to industrial output, employment generation and the export earnings of the country.
The sector contributes about 14% to industrial production, 4% to GDP and 17% to the country’s export earnings. It provides direct employment to over 35 million people. The textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation.
India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5% to 8% and reach US$ 80 billion by 2020.
EXPORT SCENERIO
The Indian textiles and clothing industry is one of the largest contributors to the country’s exports. The textile products continue to hold an important role in the Indian exports.
TECHNICAL TEXTILE
SEGMENT
Technical textiles are an important part of the textile industry. The Working Group for the Eleventh Five Year Plan has estimated the market size of technical textiles to increase from US$ 5.29 billion in 2006-07 to US$ 10.6 billion in 2011-12, without any regulatory framework and to US$ 15.16 billion with regulatory framework. The Scheme for Growth and Development of Technical Textiles aims to promote indigenous manufacture of technical textile to leverage global opportunities and cater to the domestic demands.
Further, the government is set to launch US$ 44.21 million mission for promotion of technical textiles, while the Finance Ministry has cleared setting up of four new research centers for the industry, which include products like mosquito and fishing nets, shoe laces and medical gloves.
The global technical industry is estimated at US$ 127 billion and its size in India is pegged at US$ 11 billion.
Market Size
The Indian textile industry is set for strong growth, buoyed by both rising domestic consumption as well as export demand. Abundant availability of raw materials such as cotton, wool, silk and jute and skilled workforce has made India a sourcing hub.
The most significant change in the Indian textile industry has been the advent of man-made fibres (MMF). India has successfully placed its innovative range of MMF textiles in almost all the countries across the globe. Man-made fibre production recorded an increase of 2 per cent during the year 2012-13.
Cotton yarn production increased by about 15 per cent during March 2013 and by about 14 per cent during the year 2012-13. Blended and 100 per cent non-cotton yarn production increased by 10 per cent during March 2013 and production increased by 3 per cent during the year 2012-13. Cloth production by mill sector registered a growth of 19 per cent during year 2012- 13. Cloth production by handloom and hosiery increased by 2 per cent and 14 per cent. The total cloth production grew by 1 per cent during March 2013 and by 4 per cent during year 2012-13.
INDIAN DENIM INDUSTRY
FORESEES BRIGHT PROSPECTS
India started very late in Denim despite the fact that the oldest industry in India is the textile industry, they are rich in cotton and denim is basically a cotton based fabric. At that time, due to lesser demand in the domestic market, India was exporting almost two thirds of its denim production when they were producing 300 million meters per annum. With the passage of time the domestic demand started growing. Simultaneous to the increase in capacity, domestic demand also increased.
When the capacity of denim production was 600 million meters, India was still exporting 200 million meters of denim fabric. The perception that denim fabric exports from India have not grown over a period of time is true. The fact remains that the Indian denim industry or the Denim manufacturers have not been so interested in exports. The reason behind this reluctance is not very complex. Most of the Indian manufacturers have been able to make profits by selling in the domestic market, and hence do not feel the need to compete in the international market.
In India, demand for Denim has been growing at a phenomenal pace in the recent years. Around 5 years ago, the annual production capacity was around 600 million meters, and today it is approximately around 1000 million meters. In the past two years, Indian denim industry has seen an increase in capacity of about 200-250 million meters. New players have come in, and existing players have expanded their operations. By 2015, the production capacity is expected by industry analysts to grow and reach around 1200 million meters.
An interesting fact is that during the past 12 to 18 months, there has been a notable decline in the production of denim fabrics in US and China, and hence supplies from these countries have been declining. As a result, approximately 150-200 million meters of exports are expected to be added to the Indian Denim industry.
FINANCIAL PERFORMANCE
During the year, the turnover achieved was Rs. 7031.200 Millions as compared to previous years turnover of Rs. 5738.400 Millions registering a growth of 22.52% over the previous year. The profit before depreciation and taxes stood at Rs. 766.800 Millions for the year 2012-13 as compared to Rs. 552.900 Millions during the year 2011-12 showing 38.69% over the previous year. The net profit for the year 2012-13 rose to Rs. 310.500 Millions as compared to profit of Rs.187.900 Millions over the previous year. The cash profit during the year was achieved at Rs. 719.700 Millions evidenced by effective management internal control, optimum utilization of resources and dedicated hard work of human resources. This is yet another successful period for Subject which resulted in several key achievements.
CONTINGENT LIABILITIES NOT PROVIDED FOR :
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
|
Income Tax demands disputed in appeal by the Company/ Income Tax Authorities [Against which the Company has paid amount of Rs.2.392 Millions (Previous Year Nil)] |
10.116 |
6.620 |
|
Excise Demand disputed in appeal by the company /Excise Department |
0.515 |
0.515 |
|
Professional Tax |
0.193 |
0.193 |
|
Estimated Amount of Contracts remain to be Executed on Capital Account. Advance paid against such Contract is Rs.142.994 Millions (Previous year Rs. 145.690 Millions) which is shown under the head advances. |
691.998 |
195.348 |
|
Corporate guarantee in Favour of IDBI Bank Limited to secure Term Loan Sanctioned to M/s Vraj Integrated Textile Park Limited |
197.000 |
197.000 |
|
Corporate guarantee in Favour of State Bank of Bikaner and Jaipur. To secure Term Loan Sanctioned to M/s Vraj Integrated Textile Park Limited |
163.000 |
163.000 |
|
Bank Guarantee |
14.080 |
18.031 |
|
A letter has been received by the company from service tax Department seeking Clarification on selling Commission. |
Amount not Quantifiable |
Amount not Quantifiable |
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON
30ST SEPTEMBER, 2013
(Rs. In Millions)
|
Sr. No |
Particulars |
|
||
|
Quarter Ended (Unaudited) |
Half year Ended
(Unaudited) |
|||
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
1 |
Income from operations |
|
|
|
|
|
(a) Net
Sales/Income from Operations (Net of excise duty) |
2290.182 |
2051.199 |
4341.381 |
|
|
(b) Other Operating Income |
|
|
|
|
|
Total income from operations (net) (a) + (b) |
2290.182 |
2051.199 |
4341.381 |
|
2 |
Expenses (a) Cost of materials consumed |
1206.072 |
1089.082 |
2295.154 |
|
|
(b) Purchases of stock-in-trade |
353.333 |
133.480 |
486.813 |
|
|
(c)
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
28.412 |
106.056 |
134.468 |
|
|
(d) Employee benefits expense |
90.667 |
75.509 |
166.176 |
|
|
(e) Depreciation and amortisation expense |
120.788 |
115.533 |
236.321 |
|
|
(f) Other expenditure |
254.3780 |
311.603 |
566.383 |
|
|
Total expenses |
2054.053 |
1831.263 |
3885.316 |
|
3 |
Profit / (Loss) from
operations before other income, finance costs and exceptional items(1-2) |
236.129 |
219.936 |
456.065 |
|
4 |
Other Income |
16.674 |
6.398 |
23.072 |
|
5 |
Profit /
(Loss) from ordinary activities before finance costs and exceptional items(3
+ 4) |
252.803 |
226.334 |
479.137 |
|
6 |
Finance costs |
94.251 |
90.566 |
184.817 |
|
7 |
Profit
/ (Loss) from ordinary activities after finance costs but before exceptional items(5
- 6) |
158.552 |
135.768 |
294.320 |
|
8 |
Exceptional
items |
|
|
|
|
9 |
Profit
/ (Loss) from ordinary activities before tax (7 + 8) |
158.552 |
135.768 |
294.320 |
|
10 |
Tax Expense |
|
|
|
|
|
(a) Current |
27.550 |
39.350 |
66.900 |
|
|
(b) Deferred |
48.397 |
1.340 |
49.737 |
|
|
(c) Short(excess) Provision of Income Tax and
Deferred Tax of earlier year |
|
|
|
|
11 |
Net
Profit / (Loss) from ordinary activities after tax (9-10) |
82.605 |
95.079 |
177.683 |
|
12 |
Extraordinary
Items (net of tax expense) |
|
|
|
|
13 |
Net Profit / (Loss) for the period (11 -12) |
82.605 |
98.079 |
177.683 |
|
14 |
Paid-up
equity share capital (Nominal value Rs. 10 per share) |
455.490 |
455.490 |
455.490 |
|
15 |
Reserve
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
1558.104 |
1475.499 |
1558.104 |
|
16(i) |
Earnings per share (before extraordinary items)
(of Rs. 10/- each) (not annualised): |
|
|
|
|
* |
(a) Basic |
1.81 |
2.09 |
3.90 |
|
|
(b) Diluted |
1.81 |
2.09 |
3.90 |
|
17 |
Earnings
per share (after extraordinary items) (of Rs. 10/- each) (not annualised): |
|
|
|
|
* |
(a) Basic |
1.81 |
2.09 |
3.90 |
|
|
(b) Diluted |
1.81 |
2.09 |
3.90 |
|
|
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
|
Public
shareholding - Number of shares |
|
|
|
|
|
-
Numbers of Shares |
19139687 |
19139687 |
19139687 |
|
|
-
Percentage of shareholding |
42.02% |
42.02% |
42.02% |
|
2 |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged / Encumbered |
|
|
|
|
|
-Number
of shares |
12990000 |
12990000 |
12990000 |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
49.19% |
49.19% |
49.19% |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
28.52% |
28.52% |
28.52% |
|
|
b)
Non-encumbered |
|
|
|
|
|
-
Number of shares |
13419369 |
13418908 |
13419369 |
|
|
- Percentage
of shares (as a % of the total shareholding of promoter and promoter group) |
50.81% |
50.81% |
50.81% |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
29.46% |
29.46% |
29.46% |
|
Particulars |
Quarter ended 30.09.2013 |
|
B INVESTOR COMPLAINTS (Nos) |
|
|
Pending
at the beginning of the quarter |
NIL |
|
Received
during the quarter |
NIL |
|
Disposed
of during the quarter |
NIL |
|
Remaining
unresolved at the end of the quarter |
NIL |
|
SOURCES
OF FUNDS |
As on 30.09.2013 |
|
EQUITY AND LIABILITIES |
|
|
Shareholders' Funds |
|
|
(a) Share Capital |
455.491 |
|
(b) Reserves & Surplus |
1558.104 |
|
(c) Money received against share warrants |
0.000 |
|
Total Shareholders’ Funds |
2013.594 |
|
|
|
|
Non-Current Liabilities |
|
|
(a) long-term borrowings |
3260.536 |
|
(b) Deferred tax liabilities (Net) |
224.905 |
|
(c) Other long term liabilities |
0.000 |
|
(d) long-term provisions |
0.673 |
|
Total Non-current Liabilities |
3486.114 |
|
|
|
|
Current Liabilities |
|
|
(a) Short term
borrowings |
911.988 |
|
(b) Trade payables |
483.785 |
|
(c) Other current
liabilities |
600.973 |
|
(d) Short-term provisions |
52.322 |
|
Total Current Liabilities (4) |
2049.068 |
|
|
|
|
TOTAL - EQUITY AND LIABILITIES |
7548.776 |
|
|
|
|
ASSETS |
|
|
Non-current assets |
|
|
(a) Fixed Assets |
4377.308 |
|
(b) Non-current Investments |
3.512 |
|
(c) Long-term Loan and Advances |
322.692 |
|
(d) Other Non-current assets |
28.110 |
|
Total Non-Current Assets |
4731.623 |
|
|
|
|
Current assets |
|
|
(a) Current investments |
0.000 |
|
(b) Inventories |
825.464 |
|
(c) Trade receivables |
1267.855 |
|
(d) Cash and cash equivalents |
280.522 |
|
(e) Short-term loans
and advances |
443.313 |
|
(f) Other current
assets |
0.000 |
|
Total Current Assets |
2817.154 |
|
|
|
|
TOTAL – ASSETS |
7548.776 |
FIXED ASSETS
Tangible Assets
· Land- Lease Hold/ Free Hold
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Computers
· Vehicles
· Office Equipment
Intangible Assets
· Licence and Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records 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] ecord 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.62.63 |
|
|
1 |
Rs.101.06 |
|
Euro |
1 |
Rs.84.56 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
YES |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
49 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and principal
sums |
Fairly
Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome
financial difficulties seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited
with full security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit
not recommended |
|
-- |
NB |
New
Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.