MIRA INFORM REPORT
|
Report Date : |
03.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
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Registered
Office : |
3, Walchand Terrace, Opposite Air Conditioned Market, Tardeo, Mumbai –
400034, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
30.09.2013 |
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Date of
Incorporation : |
25.11.1908 |
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Com. Reg. No.: |
11-000291 |
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Capital
Investment / Paid-up Capital : |
Rs.76.140 Millions |
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CIN No.: [Company Identification
No.] |
L74999MH1908PLC000291 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMW02073B |
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PAN No.: [Permanent Account No.] |
AAACW0541M |
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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
: |
The company's principal activities are engineering, fabrication
and manufacture of machineries for sugar plants, cement plants and boilers,
heavy duty gears, mineral processing, special and general engineering
equipments. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
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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 28257000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having satisfactory track record. The company has incurred loss from its operational activities during
financial year 2013. However, the rating takes into consideration WIL’s position as an
established heavy engineering project execution company and its good revenue
derived from its presence across several sectors. Trade relations are fair. Business is active. Payment terms 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
India’s current account deficit for the fiscal third quarter ended September
2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9
billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and
moderation in gold imports. Manufacturing activity and new orders in India
showed their strongest growth in a year in February. The news comes as a relief
after data showed Asia’s third largest economy grew by a slower-than-expected
4.7 % annually in the three months through December. The HSBC Manufacturing
Purchasing Managers’ Index which gauges the business activity of India’s
factories but not its’ utilities, rose to 52.5 in February, its highest in a
year from 51.4 in January. Overall new orders for factory goods which rose to a
one-year high of 54.9 contributed to the surge. China has emerged as India’s
biggest trading partner in the current financial year replacing the United Arab
Emirates and pushing it to the third spot. India-China trade has reached $49.5
billion with a 8.7 % share in India’s total trade. The US comes second at $46
billion with 8.1 % share during the first nine months of the current financial
year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs
1,000 denominations, pushing the deadline to January 1, 2015. A day before
dates for the Lok Sabha polls were announced, the government decided to hike
interest rates on fixed deposit schemes offered by post offices up to 0.2 per
cent. The new rates will be effective April, 1. The Supreme Court will resume
hearing on March, 11 Nokia’s appeal against a ruling over transferring
ownership of its local mobile phones plant which is the subject of a tax
dispute to Microsoft Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s
contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The
Central Bureau of Investigation will look into allegations that over $80
million was paid in kickbacks in a deal signed in 2011. India has asked Boeing
Co. to find a solution for problems with state-owned Air India’s 787
Dreamliners. The aircraft has experienced a series of malfunctions since its
debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
BBB+ (Long Term Rating) |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
February 28, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A2 (Short Term Rating) |
|
Rating Explanation |
Strong degree of safety and low credit risk.
|
|
Date |
February 28, 2014 |
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-Cooperative (91-2163-227201)
LOCATIONS
|
Registered Office : |
3, Walchand Terrace, Opposite Air Conditioned Market, Tardeo, Mumbai –
400034, Maharashtra, India |
|
Tel. No.: |
91-22-23630097/ 40287109/ 23692295 |
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Fax No.: |
91-22-23634527 |
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E-Mail : |
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Website : |
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Pune Office : |
Walchand House,
15/1/B-2, Kothrud, Pune – 411038, |
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Factory 1 : |
Walchandnagar,
District Pune, |
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Factory 2 : |
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Tel. No.: |
91-2163-227201 /
227316 |
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Fax No.: |
91-2163-227205 |
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E-Mail : |
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Factory 3 : |
Attikola, District
Dharwad - 580003, |
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Tel. No.: |
91-836-2448565/
2447359/ 2442382 |
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Fax No.: |
91-836-2448508 |
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E-Mail : |
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Marketing and Project Office: |
Walchand House, 167A, 2/8+2/9, |
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Tel. No.: |
91-20-30252400 |
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Oil and Gas : |
215- Raikar Chambers, Govandi (East), Mumbai – 400 088, |
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Tel. No.: |
91-22-25502807/25502808 |
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Fax No.: |
91-22-25502804 |
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E-mail : |
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Branch Office : |
Located at: ·
Hyderabad ·
Chennai ·
New Delhi |
DIRECTORS
As on: 30.09.2013
|
Name : |
Mr. Chakor Lalchand Doshi |
|
Designation : |
Chairman |
|
Address : |
Neela House, 2nd Floor, M. L. Dahanukar Marg, Mumbai – 400
026, |
|
Date of Birth/Age : |
15.09.1948 |
|
Date of Appointment : |
15.05.1979 |
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DIN No.: |
00210949 |
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|
Name : |
Dr. Prahlad Kumar Basu |
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Designation : |
Director |
|
Address : |
The Retreat, Bungalow No. 460, Sector 15A, Noida (Uttar Pradesh), Off |
|
Date of Birth/Age : |
16.12.1931 |
|
Date of Appointment : |
18.12.1990 |
|
DIN No.: |
01293663 |
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|
|
|
Name : |
Mr. Dilip Jayantikumar Thakkar |
|
Designation : |
Director |
|
Address : |
12, Acropolis-B, Little |
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Date of Birth/Age : |
01.10.1936 |
|
Date of Appointment : |
10.03.2003 |
|
DIN No.: |
00007339 |
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|
|
|
Name : |
Dr. Anil Purushottam Kakodkar |
|
Designation : |
Director |
|
Address : |
5/1104, Accolade Co-Operative Housing Society, Hajuri Dargah Marg,
Behind LIC, Thane (West) – 400 604, |
|
Date of Birth/Age : |
11.11.1942 |
|
Date of Appointment : |
27.12.2010 |
|
DIN No.: |
03057596 |
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|
|
|
Name : |
Mr. Ghyanendra Nath Bajpai |
|
Designation : |
Director |
|
Address : |
131, Shaan Apartemnts, Kashinath Dhuru Marg, |
|
Date of Birth/Age : |
06.07.1942 |
|
Date of Appointment : |
27.12.2010 |
|
DIN No.: |
00946138 |
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|
Name : |
Mr. A. R. Gandhi |
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Designation : |
Director |
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|
Name : |
Mrs. Bhavna Doshi |
|
Designation : |
Director |
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|
Name : |
Mr. Arjun Uttamchand Rijhsinghani |
|
Designation : |
Director |
|
Address : |
172-B, Shivalik, Near Malviya Nagar, |
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Date of Birth/Age : |
13.11.1932 |
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Date of Appointment : |
24.04.2006 |
|
DIN No.: |
00177091 |
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|
Name : |
Mr. Jaysing Laxmanrao Deshmukh |
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Designation : |
Director |
|
Address : |
185, Mahatma Housing Society, Kothrud, Pune – 411 029, |
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Date of Birth/Age : |
03.05.1949 |
|
Date of Appointment : |
01.04.2004 |
|
DIN No.: |
00267467 |
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Name : |
Mr. G. K. Pillai |
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Designation : |
Managing Director and Chief Executive Officer |
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|
Name : |
Mr. Chirag Chakor Doshi |
|
Designation : |
Managing Director |
|
Address : |
Neela House, 4th Floor, M. L. Dahanukar Marg, Mumbai – 400
026, |
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Date of Birth/Age : |
22.04.1974 |
|
Qualification : |
B.A. (Economics) from University of Michigan, USA; and MBA from the worldrenowned ‘INSEAD INSTITUTE’, Paris. |
|
Date of Appointment : |
25.11.2007 |
|
DIN No.: |
00181291 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category of Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
80280 |
0.21 |
|
|
15471923 |
40.64 |
|
|
386410 |
1.01 |
|
|
386410 |
1.01 |
|
|
15938613 |
41.87 |
|
|
|
|
|
|
5000000 |
13.13 |
|
|
5000000 |
13.13 |
|
Total shareholding of
Promoter and Promoter Group (A) |
20938613 |
55.00 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
5500 |
0.01 |
|
|
211177 |
0.55 |
|
|
12000 |
0.03 |
|
|
1862840 |
4.89 |
|
|
10000 |
0.03 |
|
|
2101517 |
5.52 |
|
|
|
|
|
|
1630747 |
4.28 |
|
|
|
|
|
|
12683834 |
33.32 |
|
|
103240 |
0.27 |
|
|
612254 |
1.61 |
|
|
408380 |
1.07 |
|
|
6630 |
0.02 |
|
|
176949 |
0.46 |
|
|
5870 |
0.02 |
|
|
14425 |
0.04 |
|
|
15030075 |
39.48 |
|
Total Public
shareholding (B) |
17131592 |
45.00 |
|
Total (A)+(B) |
38070205 |
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) |
38070205 |
0.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the Shareholder |
Details of Shares held |
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) |
|||
|
1 |
Walchand Kamdhenu Commercials Private Limited |
98,69,673 |
25.92 |
25.92 |
|
2 |
Walchand Great Achievers Private Limited |
52,60,160 |
13.82 |
13.82 |
|
3 |
Rodin Holdings Inc |
30,00,000 |
7.88 |
7.88 |
|
4 |
Olsson Holdings Inc |
20,00,000 |
5.25 |
5.25 |
|
5 |
Lalitabai Lalchand Charity Trust |
3,79,210 |
1.00 |
1.00 |
|
6 |
Walchand Chiranika Trading Private Limited |
3,42,090 |
0.90 |
0.90 |
|
7 |
Chakor L Doshi |
49,250 |
0.13 |
0.13 |
|
8 |
Chirag C Doshi |
14,000 |
0.04 |
0.04 |
|
9 |
Champa C Doshi |
10,350 |
0.03 |
0.03 |
|
10 |
Walchand Charitable Trust |
7,200 |
0.02 |
0.02 |
|
11 |
Chakor L Doshi |
6,680 |
0.02 |
0.02 |
|
|
Total |
2,09,38,613 |
55.00 |
55.00 |
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 |
Life Insurance Corpration of India |
1752365 |
4.60 |
4.60 |
|
|
|
Total |
1752365 |
4.60 |
4.60 |
BUSINESS DETAILS
|
Line of Business : |
The company's principal activities are engineering,
fabrication and manufacture of machineries for sugar plants, cement plants and
boilers, heavy duty gears, mineral processing, special and general
engineering equipments. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
Notes:
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
K.S. Aiyar and Company Chartered Accountants |
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|
Enterprises over
which any person described in (i) or (ii) above are able to exercise
significant influence : |
|
CAPITAL STRUCTURE
As on: 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs.2/- each |
Rs.240.000 Millions |
|
50000 |
10% Cumulative Preference Shares |
Rs.100/- each |
Rs.5.000 Millions |
|
50000 |
Preference Shares |
Rs.100/- each |
Rs.5.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38070205 |
Equity Shares |
Rs.2/- each |
Rs.76.140 Millions |
|
|
|
|
|
(a) Reconciliation of number of shares outstanding:
|
Equity Shares of Rs. 2 each |
Number of Shares |
Amount in
Millions |
|
At the beginning of the year |
38070205 |
76.140 |
|
Movements during the year |
-- |
-- |
|
At the end of the year |
38070205 |
76.140 |
(b) Terms and rights
attached to equity shares
The Company has only one class of equity shares having par value of ` 2 per share. Each shareholder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.
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 shareholders.
(c) Aggregate Number
of Bonus Shares Issued, Shares Issued for Consideration other than Cash During
the Period of Five years Immediately Preceding the Reporting Date:
|
Particular |
Number of Shares |
|
Equity shares issued as bonus shares out of Share Premium, General reserve and Capital reserve |
15022530 |
|
Equity shares allotted to the allottees of the warrant on Preferential basis upon exercise of conversion option by them (inclusive of 4,000,000 equity shares issued as bonus and included in Sr. No. 1 above) |
8000000 |
|
Equity Shares issued under employee Stock Purchase Scheme, 2008 (ESPS) at par to the permanent employees |
25145 |
(D) Details of
Shareholders Holding More Than 5% In The Company
|
(Equity shares of
Rs. 2 each fully paid up) |
Number of Shares |
% of holding |
|
Walchand Kamdhenu Commercials Private Limited |
9869673 |
25.92 |
|
Walchand Great Achievers Private Limited |
5260160 |
13.82 |
|
Rodin holdings inc. |
3000000 |
7.88 |
|
Olsson holdings inc. |
2000000 |
5.25 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
76.140 |
76.140 |
76.140 |
|
(b) Reserves & Surplus |
6988.157 |
3934.616 |
3993.499 |
|
(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) |
7064.297 |
4010.756 |
4069.639 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1.079 |
212.737 |
371.388 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
33.710 |
48.287 |
|
(c) Other long term
liabilities |
851.891 |
1329.081 |
2568.480 |
|
(d) long-term provisions |
40.975 |
9.789 |
8.495 |
|
Total
Non-current Liabilities (3) |
893.945 |
1585.317 |
2996.650 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2357.367 |
1654.198 |
998.348 |
|
(b) Trade payables |
2719.916 |
2566.982 |
2523.446 |
|
(c) Other current liabilities |
2675.444 |
2630.086 |
1860.851 |
|
(d) Short-term provisions |
148.585 |
87.942 |
72.829 |
|
Total
Current Liabilities (4) |
7901.312 |
6939.208 |
5455.474 |
|
|
|
|
|
|
TOTAL |
15859.554 |
12535.281 |
12521.763 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
6338.476 |
2967.477 |
2868.876 |
|
(ii) Intangible Assets |
44.087 |
43.653 |
75.284 |
|
(iii) Capital work-in-progress |
204.129 |
219.528 |
438.143 |
|
(iv) Intangible assets under
development |
0.000 |
10.965 |
0.000 |
|
(b) Non-current Investments |
102.238 |
13.565 |
13.565 |
|
(c) Deferred tax assets (net) |
190.101 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
237.837 |
34.942 |
54.356 |
|
(e) Non-Current Trade
Receivables |
34.365 |
0.000 |
0.000 |
|
(f) Other Non-current assets |
13.700 |
13.700 |
13.700 |
|
Total
Non-Current Assets |
7164.933 |
3303.830 |
3463.924 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
206.920 |
185.409 |
172.911 |
|
(b) Inventories |
2626.733 |
3143.934 |
2897.482 |
|
(c) Trade receivables |
4172.158 |
4390.913 |
3976.673 |
|
(d) Cash and cash equivalents |
122.652 |
185.379 |
295.188 |
|
(e) Short-term loans and
advances |
1385.764 |
987.558 |
1713.683 |
|
(f) Other current assets |
180.394 |
338.258 |
1.902 |
|
Total
Current Assets |
8694.621 |
9231.451 |
9057.839 |
|
|
|
|
|
|
TOTAL |
15859.554 |
12535.281 |
12521.763 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
SALES |
|
|
|
|
|
Income |
7265.135 |
8814.709 |
9576.735 |
|
|
Other Income |
56.335 |
137.078 |
66.377 |
|
|
TOTAL
(A) |
7321.470 |
8951.787 |
9643.112 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
4218.581 |
5422.045 |
5901.277 |
|
|
Sub-contracting and Processing
Charges & Other Direct Cost |
1475.732 |
1317.447 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(23.483) |
(190.311) |
(682.739) |
|
|
Employees benefits expense |
964.703 |
936.797 |
784.360 |
|
|
Other expenses |
742.687 |
677.224 |
3024.852 |
|
|
Exchange Currency Fluctuation
(Gain)/Loss |
129.296 |
81.935 |
138.247 |
|
|
Exceptional Items |
(417.454) |
52.902 |
0.000 |
|
|
TOTAL
(B) |
7090.062 |
8298.039 |
9165.997 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION
(C) |
231.408 |
653.748 |
477.115 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES
(D) |
407.598 |
304.873 |
148.629 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(176.190) |
348.875 |
328.486 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
181.538 |
179.788 |
158.944 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
(357.728) |
169.087 |
169.542 |
|
|
|
|
|
|
|
Less |
TAX
(H) |
25.089 |
47.823 |
41.564 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
(382.817) |
121.264 |
127.978 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
1984.100 |
2807.926 |
1294.720 |
|
|
Others |
395.138 |
5.661 |
17.004 |
|
|
Ethiopia |
183.673 |
173.122 |
58.886 |
|
|
TOTAL
EARNINGS |
2562.911 |
2986.709 |
1370.610 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
62.067 |
118.618 |
215.192 |
|
|
Components and Stores parts |
22.895 |
220.929 |
189.619 |
|
|
Capital Goods |
8.176 |
14.011 |
178.614 |
|
|
TOTAL
IMPORTS |
93.138 |
353.558 |
583.425 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
(10.06) |
3.19 |
3.36 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
PAT / Total Income |
(%) |
(5.23) |
1.35 |
1.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(4.92) |
1.92 |
1.77 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.37) |
1.38 |
1.40 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.05) |
0.04 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.33 |
0.47 |
0.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.10 |
1.33 |
1.66 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
76.140 |
76.140 |
76.140 |
|
Reserves & Surplus |
3,993.499 |
3,934.616 |
6,988.157 |
|
Net
worth |
4,069.639 |
4,010.756 |
7,064.297 |
|
|
|
|
|
|
long-term borrowings |
371.388 |
212.737 |
1.079 |
|
Short term borrowings |
998.348 |
1,654.198 |
2,357.367 |
|
Total
borrowings |
1,369.736 |
1,866.935 |
2,358.446 |
|
Debt/Equity
ratio |
0.337 |
0.465 |
0.334 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
9,576.735 |
8,814.709 |
7,265.135 |
|
|
|
(7.957) |
(17.579) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
9,576.735 |
8,814.709 |
7,265.135 |
|
Profit |
127.978 |
121.264 |
(382.817) |
|
|
1.34% |
1.38% |
(5.27%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF
LONG TERM BORROWINGS
(Rs. In Millions)
|
Particular |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
Current maturities of Long Term Borrowings |
251.232 |
201.873 |
185.876 |
|
|
|
|
|
|
Total |
251.232 |
201.873 |
185.876 |
|
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 |
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 |
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 |
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 |
LITIGATION
DETAILS:
HIGH COURT OF
BOMBAY
|
Bench:- Bombay |
|||||||
|
Lodging No:- |
NMAL/2577/2009 |
Failing Date:- |
21/07/2009 |
Reg. No.:- |
NMA/2577/2009 |
Reg. Date:- |
21/07/2009 |
|
Lodging No:- |
ITXAL/2881/2007 |
Reg No.:- |
ITXA/817/2008 |
||||
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX - 5 MUMBAI |
Respondent:- |
WALCHANDNAGAR INDUSTRIES LTD |
||||
|
Petn.Adv:- |
PADMA DIVAKAR |
||||||
|
District:- |
BOMBAY |
||||||
|
Bench:- |
DIVISION |
||||||
|
Status:- |
Pre-Admission |
Category:- |
NOTICE OF MOTION
(TAX) |
||||
|
Last Date:- |
12/01/2010 |
Stage:- |
|
||||
|
Last Coram:- |
ACCORDING TO
SITTING LIST ACCORDING TO
SITTING LIST |
||||||
UNSECURED
LOAN
(Rs. In Millions)
|
Particular |
As on 30.09.2013 |
As on 30.09.2012 |
|
SHORT-TERM
BORROWINGS |
|
|
|
Working Capital Loans – Foreign Currency and INR |
636.612 |
674.337 |
|
|
|
|
|
Total |
636.612 |
674.337 |
PERFORMANCE FOR THE
YEAR IN RETROSPECT:
During the year, the revenue for the year 2012-13 declined by 18.21% to Rs. 7321.500 Millions as compared to the previous year of Rs. 8951.800 Millions. The Profitability during the year was also down and the company has suffered a loss after tax of Rs. (382.800) Millions against a profit after tax of Rs. 121.300 Millions in the last year.
EXPORTS AND OVERSEAS
PROJECTS:
During the year, the Company achieved an export turnover of Rs. 2560.000 Millions as against Rs. 2980.000 Millions, in the previous year. The export orders on hand as on 30.09.2013 are at Rs. 4670.000 Millions. During the year, the Company executed orders for Boiler Projects in Ethiopia and Colombia, for Sugar Project in Ethiopia and for Cement Projects in Tanzania, Malawi and Niger.
MANAGEMENT DISCUSSION
AND ANALYSIS
Economic Overview
Global Economy
Capital inflows in the emerging markets due to the aggressive monetary easing by the Central Banks of developed economies, was a major highlight of the global economy in the year 2012-13. The global economy continued to be over shadowed by challenges and uncertainties due to the new turbulences, resulting in the divergence of growth and prospects across geographies. The near-term risk picture however has improved as recent policy actions in Europe and US have addressed some of the serious short-term risks. The year also witnessed a noticeable slowdown in the emerging economies, a reflection on the slack of demand in the advanced economies, domestic policy tightening amidst inflationary conditions and end of investment boom in some of the major emerging economies.
Indian Economy
After witnessing the lowest decadal growth rate in GDP of 5.0%, the Indian economy in 2012-13 has seen economic expansion drop to levels even below the crisis years of 2008-09. The slowdown which started in the industrial sector also extended to services sector. Domestic supply bottlenecks and policy obstacles have seen growth decelerate and industrial output slump. The flow of the new investments stopped resulting in the slump in the demand of the industrial goods. The existing projects delayed due to financial constraints and implementation gaps. The high inflation and the tight monetary policy also continued to challenge the economic revival. The Government and RBI have taken measures to reduce fiscal deficit to provide stability and protect the credit standing. New investments are expected in almost all the major industrial sectors. These changes are expected to yield positive results only in the coming years and your company will surely have its share of benefits in the India growth story.
Order Book
The company has been selective in booking orders during the year and has not compromised on the quality of orders despite the subdued market conditions and intense competition prevailing in the domestic market place in the sugar, boiler, cement, mineral and bulk handling project sectors. The Company has expanded its geographical footprint into the export market and has taken a number of initiatives which are expected to yield good results in the forthcoming year. The Order Book of the Company remains at a reasonable level with the outstanding orders at Rs. 16710.000 Millions as on 30th September, 2013. Following are the highlights of the order book:
• Go ahead for steam generation package and process house equipments at Tendaho Sugar Factory – Phase 2, Ethiopia.
• Export order from Busia Sugar (Kenya) for Co-gen power and sugar plant.
• Domestic order from Swaraj Agro for Co-gen power and sugar plant.
• Additional order for missiles from BDL.
Further the Company has ambitious plans for ramping up its order book in the Defence domain as well as focusing more on Exports (for its traditional businesses of Sugar, Boiler and Cement) by leveraging its already existing presence. North and East Africa, Latin America and South East Asia are focus regions in this respect.
Instrumentation
Division
They have tied up with Winters Instruments, Canada for introducing premium range of Instrumentation products under brand name TIWIN in Indian Market. TIWIN product will cover some of the range which is not available under TIWAC brand. This will help in meeting entire requirement of customers – which was not possible earlier. Winters Instruments, Canada is one of the major global manufacturers of Instrumentation products having number of manufacturing units located globally. Winters Instruments are manufacturing for us under TIWIN brand and will be marketed by us in Indian Market. Introduction of TIWIN range of Instrumentation Product will help in increasing market share in coming years. The TIWIN brand would be marketed through their own marketing team as well as a network of dealers across the country.
Aerospace Division
The Company is proud to be associated with the successful launch of India’s Mars Mission (Mangalyaan). The aerospace division at Walchandnagar has supplied critical components to the space program.
Segment Review
Heavy Engineering
For the year under consideration, the Sales of the Heavy Engineering Division decreased by 19% as compared to the previous year. The turnover was negatively impacted by the delay in execution of the projects, delays in manufacture of the equipments, delays in completion of civil, erection and related project execution work.
The profitability of the project business took a major hit
due to high input costs, cost overruns due to increase in transportation and
logistics cost and cost incurred on the modifications and rectifications.
Foundry
The business of foundry is divided mainly into:
• Automotive sector where the division supplies the heavy grey and SG Iron dies for the automotive industry.
• Industrial machinery and equipment.
The foundry division has made a loss during the year 2012-13 due to drop in realization resulting from the higher inputs cost on account of raw material, power and manpower costs.
Precision Instrument
Division
The precision instrument division of the Company manufactures pressure and temperature gauges and sector mechanisms required for a range of process industry applications as well as automotive applications. As already informed the division has entered in a tieup and is on the pedestal of high growth trajectory in the coming years.
LIQUIDITY AND
FINANCIAL PRUDENCE
Management of liquidity assumes even more importance when the size of the projects being handled goes up. This is to ensure adequate supply of funds for execution of the projects and entails the complete management of networking capital. The Company is giving significant emphasis on this aspect with specific efforts to track receivables, inventories and payment to supply base. Further, the Company firmly believes that financial prudence is the key to survival in difficult times as well as sustained growth. Despite all the constraints faced during the year, the Company has maintained key financial parameters at a prudent level, where debt equity ratio is maintained at 1.31.
Technology up-gradation
The key to sustained competitiveness is the availability of contemporary technologies. The Company, over the years, has entered into collaboration arrangements with some of the world’s renowned technology providers in its core field of activities. These included ongoing technology inputs as well as project specific technology support.
Outlook and
Conclusion
Revenue
While the revenues of the company declined by 18% in the year 2012-13 over the previous year, the Company looks to be poised for good growth in the next year because of the following:
• Adequate order book as on September 30, 2013, which stands at Rs. 16710.000 Millions.
• Strong business outlook in the Aerospace, Defence and Gear segments. These businesses lend long term sustainability to the revenue model of the Company.
• Additional orders for missiles. The Company is doubling the production capacity to confirm to the order delivery schedules.
• Adequate focus on the Spares business in various Divisions.
• Continued focus and efforts to build on the current order book position of the Company.
Further, the Company has strong fundamentals for a sustainable growth:
• Well diversified yet synergistic business model with a good mix of Project based and Manufacturing based businesses.
• Strong manufacturing capability.
• In-house design engineering capability.
• Project management capability.
• Technology tie-ups in critical areas.
This would augur well for the Company’s long term sustainable growth.
CONTINGENT
LIABILITIES:
|
Particular |
30.09.2013 |
30.09.2012 |
|
Counter Guarantees by the Company in respect of guarantees given by banks (including guarantee on account of erstwhile Machine Tool Division of Rs. 0.355 Millions) |
3100.483 |
2709.262 |
|
Estimated amount of Contracts remaining to be executed on Capital accounts not provided for (Net of advance) |
7.536 |
42.927 |
(iii) (a) Demand of Non Agricultural (NA) Tax of Rs. 16.137 Millions is raised by Tahshildar, Indapur (Previous year Rs. 161.37 Millions) out of which Rs. 20 Millions is paid under protest by the company. No provision has been made in the accounts as the company has not accepted the liability and the matter is sub-judice.
(b) Demand on account of fixation of Annual Rateable Value of property at Pune amounting to Rs. 32.507 Millions (for the period from 1-4-2008 to 31-3-2012) raised by the local authorities (Previous Year Rs. 32.507 Millions). No provision has been made in the account as the company has not accepted the liability and the same is sub-judice.
(c) The Central Excise Authorities have raised a demand of Rs. 26.619 Millions (Net) (Previous year Rs. 26.619 Millions) (Net) denying the exemption from the excise duty on non-conventional energy devices/systems supplied by the Company. The Company has disputed the demand and has preferred an appeal which is pending before ‘CESTAT, Mumbai’. On the basis of a legal opinion, the Company does not expect any liability.
(d) The Central Excise Authorities have raised a demand of Rs. 8.273 Millions (Previous Year Rs. 8.273 Millions) on bought out items supplied for Centrifugals, which has already suffered duty at manufactures end. The Company has disputed the demand and has preferred an appeal which is pending before Supreme court. Company has discharged Liability of Rs. 2.945 Millions by reversal of CENVAT availed and paid Rs.1.000 Millions under protests (included under the head loans and advances). On the basis of legal opinion, the Company does not expect any liability.
(e) The Sales Tax Authority, Maharashtra has raised demand of Rs.15.983 Millions (Previous Year Rs. 15.983 Millions) as per Section 6(2) of the Central Sales Tax Act, 1956. The Company has disputed the demand and has preferred an appeal before The Sales Tax Appellate Commissioner. Company paid Rs. 3.000 Millions under protests (included under the head loans and advances). On the basis of legal opinion the Company does not expect any liability.
(f ) The Sales Tax Authority, Andhra Pradesh, has raised a demand of Rs. 47.553 Millions (Previous Year NIL) under Rule 60 of the Andhra Pradesh Value Added Tax Act. The Company has disputed the demand and has preferred an appeal before Appellate Deputy Commissioner (C.T.), Secunderabad, Hyderabad. Based on the legal opinion, the company does not accept any liability. However, company has paid Rs. 6.028 Millions “Under Protest”.
(g) Service Tax demand of Rs. 36.265 Millions on sale of bought out items has been raised by the concerned authorities. The company has discharged liability of Rs. 2.876 Millions by way of CENVAT reversal under protest and has preferred an appeal which is pending before the CESTAT.
(h) Bond issued to customs department for export obligations amounting to Rs. 136.345 Millions (previous year Rs. 136.345 Millions).
(i) Company has received a demand of Rs. 5.068 Millions from Employee’s Provident Fund office. The company has contested the demand raised, and filed a writ petition with Mumbai High Court. No provision is being made against the same based on the legal advise.
(j) Certain cases filed against the Company by the Ex-employees of Heavy Engineering Division and Foundry Division for compensation are pending before the labour courts — Amounts unascertained.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10476907 |
17/01/2014 |
500,000,000.00 |
State Bank of India |
INDUSTRIAL FINANCE BRANCH, 2ND FLOOR, TARA CHAMBERS, NEAR MARIAAI POLICE CHOWKY, MUMBAI-PUNE HIGHWAY, PUNE, MAHARASHTRA - 411003, INDIA |
B96080312 |
|
2 |
10465200 |
22/11/2013 |
450,000,000.00 |
INDUSIND BANK LTD. |
2401, GEN, THIMMAYYA ROAD, (CANTONMENT),, PUNE, MAHARASHTRA - 411001, INDIA |
B91561654 |
|
3 |
10323379 |
29/10/2013 * |
13,300,000,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
B90091653 |
|
4 |
10293305 |
10/12/2012 * |
300,000,000.00 |
State Bank of India Industrial Finance Branch |
2ND FLOOR, TARA CHAMBERS, NEAR MARIAAIPOLICE CHOWKY, OLD PUNE MUMBAI HIGHWAY, WAKDEWADI, PUNE, MAHARASHTRA - 411003, INDIA |
B67190124 |
|
5 |
10208042 |
16/02/2012 * |
292,500,000.00 |
DBS BANK LIMITED |
THROUGH MUMBAI BRANCH: CREDIT CONTROL UNIT, 3RD F |
B36737922 |
|
6 |
80005249 |
22/01/2009 * |
192,700,000.00 |
State Bank Of India |
COMMERCIAL BRANCH, 1548-A, SADASHIV PETH, TILAK ROAD, PUNE, MAHARASHTRA - 411030, INDIA |
A56261415 |
* Date of charge modification
STATEMENT OF UNAUDITED RESULTS FOR THE
QUARTER ENDED ON 31ST DECEMBER 2013
(Rs. In Millions)
|
Particulars |
Quarter ended 31.12.2013 |
|
|
|
|
1 Income from Operations: |
|
|
(a) Net Sales/
Income from Operations (Net of Excise Duty) |
1437.200 |
|
(b) Other
Operating Income |
30.200 |
|
Total Income from Operations (Net) |
1467.400 |
|
|
|
|
2 Expenses: |
|
|
(a) Cost of
Materials Consumed |
959.500 |
|
(b)
Sub-Contracting and Processing Charges |
663.600 |
|
(c) Changes in
Inventories of Finished Goods, Work-in-Progress & Stock-in-Trade |
(370.400) |
|
(d) Employee
Benefit Expense |
243.400 |
|
(e) Depreciation
and Amortization Expense |
41.700 |
|
(f) Other expenses |
165.500 |
|
Total Expenses |
1703.300 |
|
|
|
|
3 Profit/ (Loss) from Operations before
Other Income, Finance Costs and Exceptional Items (1-2) |
(235.900) |
|
4 Other Income |
14.000 |
|
5 Profit/ (Loss) from Ordinary Activities
before Finance Costs and Exceptional Items (3+4) |
(221.900) |
|
6 Finance Costs |
102.600 |
|
7 Profit/ (Loss) from Ordinary Activities
after Finance Costs but before Exceptional Items & Foreign Exchange
Fluctuation (5+6) |
(324.500) |
|
8 Exchange
Currency Fluctuation Gain/ (Loss) |
(8..500) |
|
9 Exceptional
Items (Refer Note No. 5) |
- |
|
10 Profit/ (Loss) from Ordinary Activities
before Tax (7+8+9) |
(333.000) |
|
11 Tax Expense (Net
of Deferred Tax Assets) (Refer Note No. 3 & 4) |
- |
|
12 Net Profit/ (Loss) from Ordinary
Activities after Tax (10+11) |
(333.000) |
|
13 Extraordinary
Items |
- |
|
14 Net Profit/
(Loss) for the period (12+13) |
(333.000) |
|
15 Paid-up Equity Share
Capital (Face Value of Rs. 21- each) |
76.100 |
|
16 Reserve
excluding Revaluation Reserves as per Balance Sheet of previous accounting
year |
- |
|
17 Earnings per
Share (before & after Extraordinary Items) (of Rs. 21- each) (not
annualized): |
|
|
(a) Basic |
(8.75) |
|
(b) Diluted |
(8.75) |
|
|
|
|
A PARTICULARS OF SHAREHOLDING |
|
|
1 Public Shareholding |
|
|
- Number of shares |
17131592 |
|
- Percentage of shareholding |
45 |
|
|
|
|
2 Promoters and Promoter Group Shareholding |
|
|
(a) Pledged/
Encumbered |
|
|
- Number of Shares |
-- |
|
- Percentage of Shares (as a % of the Total
Shareholding of Promoter Group) |
-- |
|
- Percentage of Shares (as a % of the Total
Share Capital of the Company) |
-- |
|
(b) Non-encumbered |
|
|
- Number of shares |
20938613 |
|
- Percentage of Shares (as a % of the Total
Shareholding of the Promoter & Promoter Group) |
100 |
|
- Percentage of Shares (as a % of the Total
Share Capital of the Company) |
55 |
|
|
|
|
B INVESTOR COMPLAINTS: |
|
|
Pending at the
beginning of the quarter |
1 |
|
Received during
the quarter |
8 |
|
Disposed of during
the quarter |
9 |
|
Remaining
unresolved at the end of the quarter |
- |
SEGMENT-WISE REVENUE RESULTS AND CAPITAL
EMPLOYED
(Rs. In Millions)
|
Particulars |
Quarter
ended 31.12.2013 |
|
Segment Revenue: |
|
|
(a) Heavy
Engineering |
1327.800 |
|
(b) Foundry and
Machine Shop |
113.500 |
|
(c) Others |
28.400 |
|
Total |
1469.700 |
|
Less:
Inter-Segment Revenue |
2.300 |
|
Net Sales/ Income from Operations |
1467.400 |
|
Segment Results: |
|
|
Profit/ (Loss)
before Interest and Tax: |
|
|
(a) Heavy
Engineering |
(181.400) |
|
(b) Foundry and
Machine Shop |
(18.000) |
|
(c) Others |
0.200 |
|
Total |
(199.200) |
|
Less: Finance Cost |
102.600 |
|
Less: Other
Unallocable Expenditure (Net of Unallocable Income) |
31.200 |
|
Profit/ (Loss)
Before Tax |
(333.000) |
|
Capital Employed: |
|
|
Segment Assets |
|
|
Less: Liabilities |
|
|
(a) Heavy
Engineering |
5146.300 |
|
(b) Foundry and
Machine Shop |
683.600 |
|
(c) Others |
413.600 |
|
(d) Unallocated
(Excluding Investments) |
498.100 |
|
Total |
6741.600 |
Notes:
1. The above results, as reviewed by Audit Committee and approved by Board of Directors at it's meeting held on January 28, 2014 has been taken on record.
2. The statutory Auditors have carried out a Limited Review of the results for
the Quarter ended on December 31, 2013.
3. Provision for Deferred Tax asset, if any, on current losses will be
ascertained and accounted for at the end of year.
4. During the quarter ended December 31, 2013, the company has changed to
accounting standard 7, from accounting standard 9 for recognizing revenue in
respect of long term contracts involving design, supply and erection and
commissioning of complex machinery, being more appropriate method of accounting
considering the nature of the activity. As a result of this change, revenue
from operations for the quarter is lower by Rs. 131.900 Millions.
5. The figures for the quarter ended September 30, 2013 are balancing figures
between the audited figures in respect of the full financial year and published
year to date figures up to the third quarter ended June 2013.
6. Figures for the previous periods have been regrouped / rearranged wherever
considered necessary.
FIXED ASSETS
Intangible Assets
- Land
- Buildings
- Plant and Machinery
- Furniture, Fixtures and Fittings, Computers
- Vehicles
- Office Equipments
Intangible Assets
- Software
- Patents
- Tech. Knowhow
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.59.65 |
|
|
1 |
Rs.99.21 |
|
Euro |
1 |
Rs.82.39 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
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 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
42 |
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.