MIRA INFORM REPORT
|
Report Date : |
04.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
NOCIL LIMITED (w.e.f 29.11.2007) |
|
|
|
|
Formerly Known
As : |
NATIONAL ORGANIC CHEMICAL INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Mafatlal House, H T Parekh Marg, Backbay Reclamation, Churchgate,
Mumbai – 400020, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
11.05.1961 |
|
|
|
|
Com. Reg. No.: |
11-012003 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1607.870
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1961PLC012003 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMN00133A mumn10739b |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACN4912E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Trading of Rubber Chemicals. |
|
|
|
|
No. of Employees
: |
255 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (55) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 10000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having satisfactory
track record. Directors are reported to be experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are reported to be usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Proposed commercial = A1+ |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of
financial obligation |
|
Date |
April 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 / Head
Office/ Export Department :: |
Mafatlal House, H T Parekh Marg, Backbay Reclamation, Churchgate,
Mumbai – 400020, |
|
Tel. No.: |
91-22-66364062 |
|
Fax No.: |
91-22-66364060/ 56364056 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 /
Marketing Technical Service : |
C-37, T.T.C. Industrial Area, Off Thane-Belapur Road,
Pawne Village, |
|
Tel. No.: |
91-22-66730551 |
|
Fax No.: |
91-22-27671862 |
|
|
|
|
Factory 2 : |
12/A/1 and 13/B/1, Dahej Indl. Estate, Village Ambheta,
Talulka Vagra, District. Bharuch– 392130, Gujarat, India |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Hrishikesh A. Mafatlal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rohit Arora |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. R. Gupte |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. L. Jain |
|
Designation : |
Director - (GIC Nominee) |
|
Date of Birth/Age : |
79 Years |
|
Qualification : |
M.Com., Member of the Institute of Company Secretaries of India, The Institute of Chartered Accountants of India, The Institute of Chartered Secretaries and Administrators, London, The Chartered Management Institute, London. |
|
Directorships held
in other Companies |
|
|
|
|
|
Name : |
Mr. Vishad P. Mafatlal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D.N. Mungale |
|
Designation : |
Director |
|
Date of Birth/Age : |
59 Years |
|
Qualification : |
B.Com., LL.B., Member of the Institute of Chartered Accountants of India |
|
Directorships held
in other Companies |
|
|
|
|
|
Name : |
Mr. N. Sankar |
|
Designation : |
Director |
|
|
|
|
Name : |
P. V. Bhide |
|
Designation : |
Director (w.e.f 26.10.2010) |
|
Date of Birth/Age : |
63 years |
|
Qualification : |
B.Sc. (Hons), LL.B., M.B.A. I.A.S. of 1973 Batch-Andhra Pradesh Cadre |
|
Directorships held
in other Companies |
1. Glaxo Smithkline Pharmaceuticals Limited 2. L and T Finance Limited 3. Heidelberg Cement India Limited 4. Tube Investments of India Limited 5. L and T Finance Holdings Limited 6. Ballarpur Industries ( BILT) Limited 7. Ballarpur International Graphic Paper Holdings B.V. 8. BILT Graphic paper Products Limited 9. Joshi Technologies International Inc. 10. A.P.I.D.C. Venture Capital Private Limited |
|
|
|
|
Name : |
Mr. C.R. Gupte |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
V. K. Gupte |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2013
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
727040 |
0.45 |
|
|
58224739 |
36.21 |
|
|
58951779 |
36.66 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
58951779 |
36.66 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
44480 |
0.03 |
|
|
2472198 |
1.54 |
|
|
880 |
0.00 |
|
|
5160161 |
3.21 |
|
|
639518 |
0.40 |
|
|
8317237 |
5.17 |
|
|
|
|
|
|
15240679 |
9.48 |
|
|
|
|
|
|
59197869 |
36.82 |
|
|
17655202 |
10.98 |
|
|
1424214 |
0.89 |
|
|
5000 |
0.00 |
|
|
1419214 |
0.88 |
|
|
93517964 |
58.16 |
|
Total Public shareholding (B) |
101835201 |
63.34 |
|
Total (A)+(B) |
160786980 |
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) |
160786980 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Trading of Rubber Chemicals. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
255 (Approximately) |
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Bankers : |
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|
Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Solicitors and Advocates : |
|
|
|
|
|
Subsidiaries : |
PIL Chemicals Private Limited (PIL) |
|
|
|
|
Enterprises over which
Directors and Relatives of such personnel exercise significant influence : |
|
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1200000000 |
Equity Shares |
Rs.10/- each |
Rs.12000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
160786980 |
Equity Shares |
Rs.10/- each |
Rs.1607.870
Millions |
|
|
|
|
|
RIGHTS ATTACHED TO EQUITY SHARES
The company has a
single class of equity shares. Each shareholder is eligible for one vote per
share held. The dividend proposed by the Board of Directors is subject to the approval
of the shareholders. In the event of liquidation, the equity shareholders are
eligible to receive the assets of the company, in proportion to their
shareholding.
SHAREHOLDERS
HOLDING MORE THAN 5% EQUITY SHARES IN THE COMPANY ARE SET OUT BELOW:
|
|
As on 31st
March, 2013 |
As on 31st
March, 2012 |
|
Mishapar
Investments Limited |
|
|
|
No. of shares |
10536300 |
10536300 |
|
% Holding |
6.55 |
6.55 |
|
Arvi Associates
Private Limited |
|
|
|
No. of shares |
10867990 |
10813930 |
|
% Holding |
6.76 |
6.73 |
|
No. of shares
reserved for issuance as employee stock options |
2796200 |
1823200 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1607.870 |
1607.870 |
1607.870 |
|
(b) Reserves & Surplus |
2032.538 |
1720.503 |
1492.720 |
|
(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) |
3640.408 |
3328.373 |
3100.590 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
931.667 |
750.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
268.877 |
219.016 |
209.582 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
117.956 |
182.300 |
173.155 |
|
Total Non-current
Liabilities (3) |
1318.500 |
1151.316 |
382.737 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
373.363 |
54.588 |
0.000 |
|
(b) Trade
payables |
714.574 |
627.746 |
751.601 |
|
(c) Other
current liabilities |
435.574 |
169.343 |
101.339 |
|
(d) Short-term
provisions |
137.258 |
128.351 |
118.640 |
|
Total Current
Liabilities (4) |
1660.769 |
980.028 |
971.580 |
|
|
|
|
|
|
TOTAL |
6619.677 |
5459.717 |
4454.907 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
2955.947 |
702.170 |
741.725 |
|
(ii)
Intangible Assets |
54.554 |
38.685 |
43.172 |
|
(iii)
Capital work-in-progress |
34.408 |
1265.532 |
345.610 |
|
(iv)
Intangible assets under development |
0.000 |
12.330 |
6.584 |
|
(b) Non-current Investments |
473.058 |
250.558 |
248.313 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
518.624 |
533.146 |
519.841 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
4036.591 |
2802.421 |
1905.245 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1154.395 |
1139.151 |
1066.519 |
|
(c) Trade
receivables |
1108.661 |
995.779 |
866.753 |
|
(d) Cash
and cash equivalents |
117.644 |
350.676 |
432.528 |
|
(e)
Short-term loans and advances |
198.288 |
170.683 |
173.926 |
|
(f) Other
current assets |
4.098 |
1.007 |
9.936 |
|
Total
Current Assets |
2583.086 |
2657.296 |
2549.662 |
|
|
|
|
|
|
TOTAL |
6619.677 |
5459.717 |
4454.907 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4881.779 |
4814.910 |
4528.115 |
|
|
|
Other Income |
138.737 |
232.455 |
61.224 |
|
|
|
TOTAL (A) |
5020.516 |
5047.365 |
4589.339 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
3033.771 |
2992.983 |
2769.826 |
|
|
|
Purchases of stock-in-trade |
27.996 |
26.489 |
21.567 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
95.186 |
(70.868) |
(165.130) |
|
|
|
Employee benefits expense |
356.422 |
345.479 |
291.953 |
|
|
|
Other expenses |
1172.288 |
1192.154 |
1110.030 |
|
|
|
Exceptional item |
(222.500) |
(2.245) |
0.000 |
|
|
|
TOTAL (B) |
4463.163 |
4483.992 |
4028.246 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
557.353 |
563.373 |
561.093 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
37.549 |
4.316 |
1.245 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
519.804 |
559.057 |
559.848 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
78.457 |
89.934 |
79.851 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
441.347 |
469.123 |
479.997 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
16.445 |
129.217 |
146.816 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
424.902 |
339.906 |
333.181 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1187.411 |
659.628 |
438.570 |
|
|
|
|
|
|
|
|
|
|
Transfer from Reserve for contingency |
0.000 |
300.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
96.472 |
96.472 |
96.472 |
|
|
|
Corporate tax on dividend |
16.395 |
15.651 |
15.651 |
|
|
BALANCE CARRIED
TO THE B/S |
1499.446 |
1187.411 |
659.628 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1896.045 |
1943.973 |
1780.836 |
|
|
TOTAL EARNINGS |
1896.045 |
1943.973 |
1780.836 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1230.291 |
1284.759 |
1338.418 |
|
|
|
Stores & Spares |
1.334 |
1.470 |
4.429 |
|
|
|
Capital Goods |
129.025 |
7.794 |
5.674 |
|
|
TOTAL IMPORTS |
1360.650 |
1294.023 |
1348.521 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.64 |
2.11 |
2.07 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st Quarter |
|
Net Sales |
|
|
1346.400 |
|
Total Expenditure |
|
|
1253.600 |
|
PBIDT (Excl OI) |
|
|
92.800 |
|
Other Income |
|
|
15.200 |
|
Operating Profit |
|
|
108.000 |
|
Interest |
|
|
42.500 |
|
Exceptional Items |
|
|
(20.300) |
|
PBDT |
|
|
45.200 |
|
Depreciation |
|
|
43.800 |
|
Profit Before Tax |
|
|
01.400 |
|
Tax |
|
|
0.400 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
1.000 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
1.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
8.46
|
6.73 |
7.26 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.04
|
9.74 |
10.60 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.22
|
11.93 |
12.45 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.14 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.36
|
0.24 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.56
|
2.71 |
2.62 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
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 |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
PERFORMANCE OF THE
COMPANY
The year experienced one of the most challenging business environments which the rubber chemicals industry has ever faced. Most major customers of the Company undertook significant production cuts to align their production with the decline in the demand from the automobile sector. This in turn, resulted in lower demand for Rubber Chemicals.
Despite this, the turnover of the Company, for the year, touched Rs. 5270.000 Millions as compared to Rs.5110.000 Millions in the previous year, representing an increase of about 3%. The production of rubber chemicals and their intermediates, for the year was 33341 MT as against 37173 MT, representing a decrease of about 10% as compared to the previous year.
On the back of high crude oil and benzene prices, the prices of practically all their major inputs rose to levels seldom witnessed over the last 5-7 years. Unfortunately, they could not pass commensurate price increases to their customers, in view of the aggressive dumping of rubber chemicals into the country by the Chinese/Korean/ European suppliers. The Company, therefore, on occasion had to curtail the production of certain key products, in line with the reduced residual demand post this dumping
Efforts however were made from the fourth quarter of this year, to pass on some increases to customers to mitigate, at least partially, the impact of some of the cost increases.
As reported last year, one of the major initiatives undertaken by the Company’s management, was to set-up a new manufacturing facility at Dahej in Gujarat, with a much improved process technology, to produce a key intermediate for an important product in their range of rubber chemicals. They are happy to inform you that the said facility commenced commercial production from early March 2013.
Although, the overall business conditions at this critical juncture do not look very healthy, the Company’s management is confident that the Company will tide over this situation soon, as some more realignment in the global rubber chemicals industry is expected, which should improve the market conditions.
They are also hopeful that, pursuant to their petition to the GOI authorities against the dumping, they will receive suitable relief by way of imposition of antidumping duties. Consequently, their operational performance should improve from the current levels.
EXPORTS
The slowdown in the European and Japanese economies affected their export volumes, as the demand for rubber chemicals in these markets got adversely impacted. The Company recorded an export sales turnover of Rs.1880.000 Millions, for the year as against Rs.1930.000 Millions in the previous year.
PROJECT
Their Project at Dahej in Gujarat was commissioned for trial runs, from the second half of the year. Commercial Production at Dahej Site commenced on successful completion of a sustained and stable production run, and on receiving product approvals from all their major customers. It is noteworthy that the entire project was completed and commissioned by a dedicated in-house technical and engineering team. They are proud to mention that this was a project where no external technical collaboration was sought, particularly when such a complex and intricate chemical process was involved. Only a couple of producers in the world, have succeeded in using this chemical process.
The Project could have been commissioned a few months earlier, had timely and adequate power supply been made available by the Electricity Board. Production at the plant is expected to be optimized during the first half of the coming year. This project will enable the Company to improve its operational performance, through the technological innovations/improvements made in the new manufacturing process.
The total expenditure incurred for this project is well within the original sanctioned amount of Rs.2500.000 Millions, and the debt component of the project will be less than the originally estimated amount.
MANAGEMENT DISCUSSION
AND ANALYSIS
Economic Review
The Indian economy reported GDP growth below 5% during the year. Crude oil prices however, at the same time continued to remain at high levels. India being dependant on imports for oil, experienced one of the highest fiscal deficits during this period and the rupee too weakened by about 7%-8% vis-ŕ-vis the US Dollar.
It remains to be seen how the economy performs in the coming year, although the general feeling is that the Indian Economy has “bottomed out” and is expected to grow at higher rates in the coming years, as compared to the year. Inflation, which was one of the biggest worries for the government over the last few years, was somewhat under control, as compared to the previous year. In fact, the data released for April 2013, indicated inflation at 4.89% which is the lowest during the last 3 years. Reserve Bank of India (RBI) twice announced reduction in the key interest rates during the year followed by another in May 2013. The International Monetary Fund as well as the Asian Development Bank in their recent releases have predicted that there are good chances that the Indian Economy should grow at a higher rate in the coming years. At the same time, one of the areas of continuing concern is the outlook for the World Economy and the Fiscal Policies of USA, Japan as well as the Euro Zone. Any short term crisis in these markets will definitely impact the overall demand and consequently, Indian exports. This will also impact the Capital Inflows into India, which is one of the critical sources of financing the Current Account Deficit of the country.
On the whole, the business outlook in India is likely to be more positive and should show some improvement in overall demand. A reduction in interest rates is also expected which should augur well for the business.
Rubber Chemicals
Industry
Rubber Chemicals are consumed in the rubber application industries. These Chemicals form a very small niche component in the consuming industries, but are very critical by nature from the quality point of view. The demand for rubber chemicals is primarily dependent on the performance of the rubber processing industries as well as the Automotive Sector. All the important economic parameters of a country drive the Automotive Industry. Despite the significant production cuts undertaken by the consuming industry, the Company managed to retain its domestic volumes, for the year.
In view of the global slow-down, and its corresponding impact on Automobile / Tyre Industry across the globe, the overall rubber chemicals business, experienced a significant drop in terms of consumption, during the year. This drop not only affected Sales Volumes but also impacted the selling prices of rubber chemicals as well.
Cost increases in various inputs for rubber chemicals, due to high crude oil as well as Benzene prices, aggravated the situation further. The intensified dumping of rubber chemicals into India by their international competitors prevented the Company from raising selling prices and thus had to absorb the increased costs. Even then, through a well diversified portfolio of rubber chemicals, the Company managed to retain its volumes with only a marginal drop as compared with the previous year’s levels, but with a drop in margins.
Performance of the
Year
The Industrial Growth in India during FY 12-13 was at a meager 1% as compared to 2.90% in FY 11-12. As a result, most business sectors were at best stable, and growth opportunities were limited. Key customers of the Company, undertook production cuts at periodical intervals to align their production with the decline in the Auto sector demand. This in turn resulted in lower demand for Rubber Chemicals. Despite this, the Company through its wide range of products and across a well-diversified customer base, could maintain its sales volumes, through sustained marketing efforts. The growth opportunities in the international markets were weaker than in the domestic markets.
Unlike during the previous slowdown in 2008, crude oil price did not experience any softening and, on the contrary, remained high resulting in higher input costs for the Company. The prices of practically all the major inputs of the Company rose to high levels not witnessed over the past several years. For some of their major inputs, the cost increases were over 60% as compared to the levels of FY 11-12. Due to the mismatch of international supply-demand, the Company too had to occasionally align the production of certain key products downwards in line with reduced market demand.
Despite this, the turnover of the Company for the year touched Rs. 5270.000 Millions as compared to Rs.5110.000 Millions in the previous year, representing an increase of about 3%.
The timely setting up of the Dahej Manufacturing facilities with much improved cost competitive technology, will help the Company to tide over this critical stage of business. Besides, the Company will continue to strive for improvement in its market share, by optimising the product mix and offering wide range of products to its customers. You will be happy to note that the Company is one of the few players in the rubber chemicals business, offering such a wide range of products to the end users.
CONTINGENT
LIABILITIES IN RESPECT OF:
|
Particulars |
31.03.2013 (Rs. in millions) |
31.03.2012 (Rs. in millions) |
|
Claims against the Company not acknowledged as debts - Legal cases against the company |
14.058 |
20.288 |
|
Central excise duty and Customs duty demands dispute |
13.900 |
15.342 |
|
Income tax demands disputed |
86.583 |
281.688 |
|
Sales tax demands disputed |
36.436 |
79.487 |
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 30 JUNE 2013
|
Sr. No. |
PARTICULARS |
For the Quarter ended on 30.6.2013 |
|
1 |
Income from
Operations |
|
|
|
a) Net Sales (Net of excise duty) |
1341.100 |
|
|
b) Other operating income |
5.300 |
|
|
Total Income from
Operations (Net) |
1346.400 |
|
2 |
Expenses |
|
|
|
a] Cost of materials consumed |
728.700 |
|
|
b) Purchases of stock-in-trade |
9.600 |
|
|
c) Change in inventories of finished goods, work-in-progress & stock-in-trade |
94.300 |
|
|
d) Employee benefits expense |
93.800 |
|
|
e) Depreciation and amortization expense |
43.800 |
|
|
I) Utilities |
135.700 |
|
|
g) Other expenses |
191.500 |
|
|
Total expenses |
1297.400 |
|
3 |
Profit/(Loss) from
operations before other income, finance costs & exceptional items (1-2) |
49.000 |
|
4 |
Other Income |
15.200 |
|
5 |
Profit/(Loss) from ordinary
activities before finance cost and exceptional items (3+4) |
64.200 |
|
6 |
Finance costs |
42.500 |
|
7 |
Profit / [Loss)
from ordinary activities after finance costs before exceptional items (5-6) |
21.700 |
|
8 |
Exceptional Items - Voluntary retirement scheme (refer note # 3) |
(20.300) |
|
|
- Diminution in value of investments, reversed |
- |
|
|
Total exceptional items |
(20.300) |
|
9. |
Profit from
ordinary activities before tax (7+8) |
1.400 |
|
10 |
Tax expense |
0.400 |
|
11 |
Net Profit after
Tax (9 - 10) |
1.000 |
|
12 |
Paid up equity share capital (Face value ?.10 each) |
1607.900 |
|
13 |
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year |
- |
|
14 |
Earnings per share (of?.
10 Each) (not annualized) |
|
|
|
- Basic |
0.01 |
|
|
- Diluted |
0.01 |
|
|
|
|
|
A) |
PARTICULARS OF
SHAREHOLDING |
|
|
1. |
Public
Shareholding: |
|
|
|
- Number of shares |
101,835,201 |
|
|
- Percentage of shareholding |
63.34 |
|
|
|
|
|
2. |
Promoters and
Promoter Group Shareholding |
58,951,779 |
|
a) |
Pledged /
Encumbered |
|
|
|
- Number of shares |
- |
|
|
- Percentage of shares (as a % of total shareholding of promoter and promoter group) |
- |
|
|
- Percentage of shares (as a % of the total share capital of the Company ] |
- |
|
b) |
Non- encumbered |
|
|
|
- Number of shares |
58,951,779 |
|
|
- Percentage of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
36.66 |
|
|
|
|
|
B) |
INVESTOR COMPLAINTS |
|
|
|
- Pending at the beginning of the quarter |
- |
|
|
- Received during the quarter |
3 |
|
|
- Disposed off during the quarter |
3 |
|
|
- Remaining unresolved at the end of the quarter |
- |
Notes:
1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 29 July 2013.
2. The Company is primarily engaged in the business of manufacture of Rubber Chemicals, which in the context of Accounting Standard (AS 17) on "Segment Reporting", constitutes a single reportable segment.
3. The Company has implemented a voluntary retirement scheme at its Navi Mumbai Plant. The compensation paid during the quarter under the said scheme of Rs.20.300 Millions has been debited to the Statement of Profit and Loss and shown as an exceptional item.
4. The figures for the corresponding periods have been regrouped, wherever necessary, to make them comparable.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10435314 |
14/06/2013 |
350,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B78953569 |
|
2 |
10315780 |
03/09/2012 * |
500,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B58723214 |
|
3 |
10274532 |
03/09/2012 * |
750,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B58865171 |
|
4 |
10006868 |
10/04/2013 * |
650,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B74190315 |
|
5 |
90230121 |
31/01/2006 |
270,000,000.00 |
UTI BANK LIMITED |
NARIMAN POINT BRANCH, ATLANTA POINT BRANCH; ATLAN |
- |
|
6 |
90241373 |
21/03/2005 |
152,289,030.00 |
STATE BANK OF INDIA |
BRANCH, MUMBAI, MAHARASHTRA, INDIA |
- |
|
7 |
90223229 |
21/03/2001 |
120,000,000.00 |
ICICI LIMITED |
ICICI TOWERS; BANDRA - KURLA COMPLEX, BANDRA EAST |
- |
|
8 |
90222774 |
16/05/2000 * |
300,000,000.00 |
ICICI LIMITED |
163, BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
9 |
90222640 |
04/06/1996 |
220,000,000.00 |
INFRASTRUCTURE LEASING AND FINANCIAL SERVICES LIMITED. |
MAHINDRA TOWERS; 4TH FLOOR, DR. G. M. BHOSALE MARG, BOMBAY, MAHARASHTRA - 400018, INDIA |
- |
|
10 |
90222510 |
19/06/1995 |
20,000,000.00 |
ABN AMRO BANK N.V. |
14; VEER NARIMAN ROAD, FORT, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
11 |
90222443 |
16/02/1995 |
30,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICE G. N. VAIDYA MARG, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
12 |
90222425 |
26/12/1994 |
300,000,000.00 |
SCICI LIMITED. |
141, MARKER TOWERS F; CUFFE PARADE, BOMBAY, MAHARASHTRA - 400005, INDIA |
- |
|
13 |
90222318 |
19/04/1994 |
175,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, MUMBAI, MAHARASHTRA - 400021, INDIA |
- |
|
14 |
90222269 |
21/12/1993 |
37,800,000.00 |
ABN AMRO BANK N.A |
14; VEER NARIMAN ROAR, FORT, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
15 |
90222254 |
24/11/1993 |
31,200,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, ]JUSTICE G. N. VAIDYA MARG, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
16 |
90225933 |
24/11/1993 * |
265,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICE G. N. VAIDYA MARG, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
17 |
90222226 |
13/09/1993 |
50,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, FORT, BOMBAY, MAHARASHTRA - 400001, INDIA |
- |
|
18 |
90222218 |
31/12/1994 * |
70,000,000.00 |
CORPORATION BANK |
INDUSTRIAL FINANCE BRANCH; BHARAT HOUSE, GROUND F |
- |
|
19 |
90222213 |
07/04/1994 * |
150,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, 1ST FLOOR; UNION BANK |
- |
|
20 |
90222172 |
09/04/1993 |
30,000,000.00 |
CREDIT LYONNAIS |
SCINDIA HOUSE, BALLARD PIAR, BOMBAY, MAHARASHTRA - 400038, INDIA |
- |
|
21 |
90224353 |
14/07/1992 |
1,500,000.00 |
BARCLAYS BANK OLC |
54; LOMBARD STREET, LONDON, UNITED KINGDOM |
- |
|
22 |
90222065 |
17/06/1992 |
40,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH; 1ST FLOOR, 239; VIDHAN BHAVAN MARG, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
23 |
90225864 |
17/06/1992 |
40,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH; 1ST FLOOR, UNION BANK BHAVAN; 239; VIDHAN BHAVAN MARG, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
24 |
90222031 |
06/03/1992 |
30,000,000.00 |
ABN AMRO BANK N.V. |
14; VEER NARIMAN ROAD, BOMBAY, MAHARASHTRA - 40002 |
- |
|
25 |
90221979 |
07/11/1991 |
150,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH; UNION BANK BHAVAN, 1ST |
- |
|
26 |
90221948 |
08/09/1995 * |
100,000,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
27 |
90221722 |
15/12/1993 * |
30,000,000.00 |
BANK OF INDIA |
NARIMAN POINT BRANCH, AIR INDIA BUILDING; NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
28 |
90225729 |
15/12/1993 * |
30,000,000.00 |
BANK OF INDIA |
NARIMAN POINT BRANCH, AIR INDIA BUILD; NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
29 |
90221488 |
30/03/1989 * |
12,000,000.00 |
INDUSTRIAL RECONSTRUCTION BANK OF INDIA |
19, NETAJI SUBASH ROAD, CALCUTTA, WEST BENGAL - 700001, INDIA |
- |
|
30 |
90221211 |
26/08/1985 |
4,500,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORP. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
31 |
90225542 |
23/08/1985 |
15,000,000.00 |
BANK OF INDIA |
COMMERCIAL BRANCH; BANKS STREET, FORT, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
32 |
90221097 |
30/07/1984 * |
22,300,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
NARIMAN BHAVAN; 227, VINAY K. SHAH MARG; NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
33 |
90221093 |
27/02/1984 |
20,000,000.00 |
THE HONGKONG AND SHANGHAI BANKING CORPORATION |
50/60, MAHATMA GANDHI ROAD, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
34 |
90221055 |
23/08/1985 * |
13,786,824.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
35 |
90221053 |
30/07/1984 * |
30,000,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
NARIMAN BHAVAN; 227, VINAY K. SHAH MARG; NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
36 |
90221025 |
19/04/1983 |
30,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
37 |
90220999 |
04/08/1988 * |
25,500,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA |
163, BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
38 |
90226533 |
19/01/1983 |
14,000,000.00 |
THE INDUSTRIAL FINANCE CORPORATION OF INDIA |
BANKOF BARODA BUILDING, 16; PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDIA |
- |
|
39 |
90220994 |
22/12/1982 |
20,000,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
40 |
90220954 |
31/03/1982 |
1,500,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
41 |
90225479 |
05/03/1982 |
20,000,000.00 |
MERCANTILE BANK LIMITED. |
52/60, MAHATMA GANDHI ROAD, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
42 |
90220909 |
26/06/1981 |
10,900,000.00 |
THE INDUSTRIAL CREDIT AND IVESTMENT CORP. OF INDIA L |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
43 |
90220872 |
01/12/1982 * |
25,000,000.00 |
SYNDICATE BANK |
NARIMAN POINT BRANCH, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
44 |
90225461 |
15/12/1980 |
25,000,000.00 |
SYNDICATE BANK |
NARIMAN POINT BRANCH, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
45 |
90220819 |
16/01/1980 |
5,000,000.00 |
LIFE INSURACE CORPORATION OF INDIA |
YOGAKSHEMA, JEEVAN BIMA MARG, BOMBAY, MAHARASHTRA - 400021, INDIA |
- |
|
46 |
90220801 |
20/06/1979 |
7,252,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
|
47 |
90220642 |
06/07/1972 |
10,200,000.00 |
THE INDUSTRIAL CREDIT AND INVE. CORPO. OF INDIA |
163, BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA - 400020, INDIA |
- |
* Date of charge modification
FIXED ASSETS
·
Land Leasehold
·
Building
·
Plant and Machinery
·
Office Equipments
including computers
·
Furniture, Fixtures and
Equipment
·
Vehicle
·
Patents
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.66.89 |
|
|
1 |
Rs.103.95 |
|
Euro |
1 |
Rs.88.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
55 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.