MIRA INFORM REPORT
|
Report Date : |
05.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
BERGER PAINTS INDIA LIMITED |
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Registered
Office : |
Berger House, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
17.12.1923 |
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Com. Reg. No.: |
21-004793 |
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Capital
Investment / Paid-up Capital : |
Rs. 692.600 Millions |
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|
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CIN No.: [Company Identification
No.] |
L51434WB1923PLC004793 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CALA15344A CALB00256E |
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PAN No.: [Permanent Account No.] |
AABCB0976E |
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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
: |
Manufacturing and Marketing of Synthetic Resins and Paints, Varnishes, Enamels, etc. |
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No. of Employees
: |
2464 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (72) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 39377000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having fine track record. The rating reflects healthy financial risk profile support by
established position in the Indian paints industry, decent liquidity position
and sound profitability levels. Trade relations are reported as fair. Business is active. Payment
terms are reported to be regular 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
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 |
Long term rating=AA+ |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
04.12.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term
rating=A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
04.12.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management Non Co-operative (91-33-22299724)
LOCATIONS
|
Registered/ Head Office / Factory : |
Berger House, |
|
Tel. No.: |
91-33-22299724-28/ 22296005/ 22296006/ 22296016/ 22003546–48/ 249 9754 |
|
Fax No.: |
91-33-22499009/ 22499729/ 22003549 |
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E-Mail : |
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Website : |
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Plant 1 : |
14 and |
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Tel. No.: |
91-33-2668 4706 |
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Fax No.: |
91-33-2668 2956 |
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Plant 2 : |
RS No. 53-56 Pandasozhanallur, Village – Nettapakkam Commune, Pondicherry – 605 106, Tamil Nadu, India |
|
Tel. No.: |
91-431-2699574 / 171 |
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Fax No.: |
91-431-2699171 |
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Plant 3 : |
316-317, Kundaim Industrial Estate, Kundaim, North |
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Tel. No.: |
91-832-2395610 / 6407 |
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Fax No.: |
91-832-2395663 / 239 5610 |
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Plant 4 : |
D-20, Site-B, Surajpur Industrial Area, Greater Noida, District Gautam Budh Nagar, Surajpur, India |
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Tel. No.: |
91-120-2561320 / 2560621 / 2561321 |
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Plant 5 : |
38A, Industrial Area, |
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Tel. No.: |
91-5735-222384 / 222249 |
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Plant 6 : |
SIDCO Industrial Growth Centre, Sambha, District Jammu, Jammu and Kashmir – 184 121 |
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Tel. No.: |
09123-246451 / 58 / 59 |
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Plant 7 : |
103, G.T. Road, Rishra, Hooghly – 712 248 |
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Tel. No.: |
91-33-26720641 / 42 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Kuldip Singh Dhingra |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Gurbachan Singh Dhingra |
|
Designation : |
Vice Chairman |
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Date of Birth : |
09.04.1950 |
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Qualification |
Bachelor of science |
|
Date of Appointment : |
14.05.1993 |
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|
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|
Name : |
Mr. Abhijit Roy |
|
Designation : |
Director |
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Date of Birth : |
12.07.1965 |
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Qualification |
BE (Mechanical), Post Graduate Diploma in Management |
|
Date of Appointment : |
11.02.2011 |
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|
|
|
Name : |
Mr. Srijit Dasgupta |
|
Designation : |
Whole Time Director and Chief Financial Officer |
|
Date of Birth : |
21.07.1961 |
|
Qualification |
B.Sc |
|
Date of Appointment : |
11.02.2011 |
|
|
|
|
Name : |
Mr. Gerald Kenneth Adams |
|
Designation : |
Director |
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Date of Birth : |
17.06.1953 |
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Qualification |
MBA |
|
Date of Appointment : |
30.01.2008 |
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|
|
|
Name : |
Mr. Anil Bhalla |
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Designation : |
Director |
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Date of Birth : |
14.09.1946 |
|
Qualification |
Chartered Accountants |
|
Date of Appointment : |
27.09.1991 |
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|
|
|
Name : |
Mr. Subir Bose |
|
Designation : |
Managing Director |
|
Experience : |
B. Tech, PGDBA |
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Date of Birth : |
10.12.1949 |
|
Qualification |
B. Tech, PGDBA |
|
Date of Appointment : |
07.03.1994 |
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|
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|
Name : |
Mr. Gurcharan Das |
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Designation : |
Additional Director |
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Date of Birth : |
03.10.1943 |
|
Qualification |
Harvard Graduate |
|
Date of Appointment : |
27.072001 |
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|
|
|
Name : |
Mr. Kamal Ranjan Das |
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Designation : |
Director |
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Date of Birth : |
23.02.1932 |
|
Qualification |
Graduate |
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|
|
|
Name : |
Mr. Pulak Chandan Prasad |
|
Designation : |
Director |
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Date of Birth : |
27.05.1968 |
|
Qualification |
B. Tech |
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|
|
|
Name : |
Mrs. Rishma Kaur |
|
Designation : |
Alternate Director to Mr. Kuldip Singh Dhingra |
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Date of Birth : |
01.09.1972 |
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Qualification |
B. Sc (Hons.) in Business Studies |
|
Date of Appointment : |
14.04.2011 |
|
|
|
|
Name : |
Mr. Kanwardip Singh Dhingra |
|
Designation : |
Alternate Director to Mr. Gurbachan Singh Dhingra |
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Date of Birth : |
28.10.1982 |
|
Qualification |
Bachelor’s Degree in Chemical Engineering |
|
Date of Appointment : |
14.04.2011 |
KEY EXECUTIVES
|
Name : |
Mr. Aniruddha Sen |
|
Designation : |
Senior Vice
President and Company Secretary |
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COMMITTEES : |
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|
Audit Committee : |
· Anil Bhalla (chairman) · Kamal Ranjan Das · G S Dhingra · Mr. Kuldip Singh Dhingra · Aniruddha Sen (Secretary) |
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|
|
|
Share Transfer Committee: |
·
Mr. Abhijit Roy (Chairman) ·
Mr. Kamal Ranjan Das |
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|
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|
Investors Grievances Committee : |
·
Mr. Anil Bhalla ( chairman) ·
Mr. abhijit Roy ·
Mr. Kamal Ranjan Das |
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|
|
|
Compensation Committee : |
· Anil Bhalla (Chairman) · Kamal Ranjan Das · Kuldip Singh Dhingra |
SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
16522808 |
4.77 |
|
|
192960088 |
55.69 |
|
|
209482896 |
60.46 |
|
|
|
|
|
|
50234565 |
14.50 |
|
|
50234565 |
14.50 |
|
Total shareholding of Promoter and Promoter Group (A) |
259717461 |
74.96 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2073367 |
0.60 |
|
|
58171 |
0.02 |
|
|
7233965 |
2.09 |
|
|
40704888 |
11.75 |
|
|
50070391 |
14.45 |
|
|
|
|
|
|
5207297 |
1.50 |
|
|
|
|
|
|
28468175 |
8.22 |
|
|
843045 |
0.24 |
|
|
2174948 |
0.63 |
|
|
585107 |
0.17 |
|
|
91018 |
0.03 |
|
|
29564 |
0.01 |
|
|
50 |
0.00 |
|
|
1469209 |
0.42 |
|
|
36693465 |
10.59 |
|
Total Public shareholding (B) |
86763856 |
25.04 |
|
Total (A)+(B) |
346481317 |
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) |
346481317 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Synthetic Resins and Paints Varnishes Enamels etc. |
||||||||
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|
Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Synthetic Resin |
MT |
33.151 |
25,516 |
|
|
|
|
|
|
Paints, Varnishes, Enamels etc. |
|
|
|
|
-
Liquid |
KL |
251742 |
140,165 |
|
-
Non-Liquid |
MT |
24,204 |
GENERAL INFORMATION
|
No. of Employees : |
2464 (Approximately) |
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Bankers : |
· Standard Chartered Bank, 4 Netaji Subhas Road P.O. Box 40 Kolkata – 700 001 West Bengal, West Bengal, India ·
Bank of Baroda · Central Bank of India, 33 Netaji Subhas Road P. O. Box 40 Kolkata – 700 001 West Bengal India · The Royal Bank of Scotland NV · Corporation Bank · HDFC Bank Limited ·
ICICI Bank Limited · State Bank of India · Axis Bank Limited · ING Vysya Bank Limited · DBS Bank limited · The Hongkong and Shanghai Banking Corporation Limited Kolkata West Bengal India |
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Facilities : |
Note: · Term loan from banks are secured by a charge by way of mortgage on some specific fixed assets. The above loans are repayable within 31st December, 2014. ·
Loans from Banks cash credit are secured by hypothecation
of stock-in- trade and book debts and repayable on demand. ·
Cash Credit is secured by hypothecation of
stock-in-trade and book debts and repayable on demand. ·
During the year, the Company borrowed monies
through issuance of Commercial Papers. Year-end amount of such outstanding
Commercial Papers is Rs. Nil (2011-12 – Rs. Nil). Maximum amount outstanding on account of
3000.000 Millions Commercial Papers at any time during the
year |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lovelock and Lewes Chartered Accountants |
|
Address : |
Plot No- Y-14, Salt Lake, Block – EP, Sector – 5, Kolkata – 700 091, West Bengal, India |
|
|
|
|
Associates Company
: |
U. K. Paints (India) Private Limited |
|
|
|
|
Joint Ventures : |
· Berger Becker Coatings Private Limited · BNB Coatings India Limited |
|
|
|
|
Wholly Owned
Subsidiary Company : |
· Berger Jenson and Nicholson (Nepal) Private Limited · Beepee Coatings Private Limited · Berger Paints (Cyprus) Limited · Berger Paints Overseas Limited · Lusako Trading Limited · Bolix S.A. · Build - Trade Sp. z.o.o. |
|
|
|
|
Enterprise over
which Limited
Directors have significant
influence : |
· U. K. Paints (Overseas) Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
375000000 |
Equity Shares |
Rs. 2/- each |
Rs.750.000 Millions |
|
|
|
|
|
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
346335688 |
Equity Shares |
Rs. 2/- each |
Rs.692.700 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
346289948 |
Equity Shares |
Rs. 2/- each |
Rs.692.600 Millions |
|
|
|
|
|
a.
Reconciliation of the number of shares and the
amount of share capital:
|
Equity Shares |
Number
of Shares |
% Holding |
|
Balance as at 1st
April |
346153264 |
69.23 |
|
Add: Shares issued on
exercise of employee stock options * |
136684 |
0.03 |
|
Balance as at 31st March |
346289948 |
69.26 |
b.
Details of equity shares held by shareholders
holding more than 5% shares:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
U K Paints (India Limited) |
158115295 |
45.66 |
|
Jenson and Nicholson (Asia) Limited, UK |
50234565 |
14.51 |
|
Nalanda India Fund Limited |
18124788 |
5.23 |
|
Total |
226474648 |
65.40 |
c. Terms / rights attached to equity shares:
Share Capital comprises only equity shares of
Rs.2/- each only.
The equity shares rank pari passu in all
respects including right to dividend, issue of new shares and voting rights.
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 |
692.600 |
692.300 |
692.000 |
|
(b) Reserves & Surplus |
9151.700 |
7763.700 |
6538.000 |
|
(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) |
9844.300 |
8456.000 |
7230.000 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
166.400 |
124.700 |
90.000 |
|
(c) Other long term
liabilities |
124.700 |
94.000 |
71.000 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
291.100 |
218.700 |
161.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
3030.200 |
1698.500 |
1070.000 |
|
(b) Trade
payables |
3516.500 |
3281.700 |
2520.000 |
|
(c) Other
current liabilities |
891.500 |
807.600 |
768.000 |
|
(d) Short-term
provisions |
814.700 |
640.000 |
439.000 |
|
Total Current
Liabilities (4) |
8252.900 |
6427.800 |
4797.000 |
|
|
|
|
|
|
TOTAL |
18388.300 |
15102.500 |
12188.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
3144.300 |
2683.000 |
1995.000 |
|
(ii)
Intangible Assets |
72.500 |
36.600 |
47.000 |
|
(iii)
Capital work-in-progress |
1661.300 |
658.700 |
768.000 |
|
(iv)
Intangible assets under development |
51.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
807.600 |
766.100 |
655.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
615.300 |
455.500 |
155.000 |
|
(e) Other
Non-current assets |
0.800 |
1.100 |
1.000 |
|
Total Non-Current
Assets |
6352.800 |
4601.000 |
3621.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current
investments |
98.200 |
29.600 |
521.000 |
|
(b)
Inventories |
5769.100 |
5139.600 |
4039.000 |
|
(c) Trade
receivables |
3245.500 |
3051.600 |
2383.000 |
|
(d) Cash
and cash equivalents |
2225.400 |
1762.900 |
1228.000 |
|
(e) Short-term
loans and advances |
589.000 |
453.700 |
363.000 |
|
(f) Other
current assets |
108.300 |
64.100 |
33.000 |
|
Total
Current Assets |
12035.500 |
10501.500 |
8567.000 |
|
|
|
|
|
|
TOTAL |
18388.300 |
15102.500 |
12188.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
30242.100 |
26620.900 |
21071.000 |
|
|
|
|
Other Income |
307.600 |
306.200 |
296.000 |
|
|
|
|
TOTAL (A) |
30549.700 |
26927.100 |
21367.000 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of materials consumed |
16774.600 |
16143.700 |
12769.000 |
|
|
|
|
Purchases of Stock-in-Trade |
2357.800 |
1670.400 |
1205.000 |
|
|
|
|
Increase in inventories of finished goods, work-in-process and
stock-in-trade |
(414.900) |
(731.800) |
(585.000) |
|
|
|
|
Employee benefits expense |
1399.600 |
1223.200 |
1067.000 |
|
|
|
|
Other expenses |
6761.800 |
5540.600 |
4378.000 |
|
|
|
|
TOTAL (B) |
26878.900 |
23846.100 |
18834.000 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3670.800 |
3081.000 |
2533.000 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
276.700 |
223.700 |
122.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
3394.100 |
2857.300 |
2411.000 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
462.800 |
375.600 |
300.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
2931.300 |
2481.700 |
2111.000 |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
833.300 |
707.800 |
628.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
2098.000 |
1773.900 |
1483.000 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Export Earnings |
|
25.900 |
7.595 |
|
|
|
|
Other Earnings |
|
16.500 |
1.383 |
|
|
|
TOTAL EARNINGS |
NA |
42.400 |
8.978 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
3428.500 |
3089.000 |
1782.811 |
|
|
|
|
Stores & Spares |
5.900 |
6.000 |
2.100 |
|
|
|
|
Capital Goods |
108.600 |
28.000 |
13.348 |
|
|
|
TOTAL IMPORTS |
3543.000 |
3123.000 |
1798.259 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
6.05 |
5.13 |
4.29 |
||
QUARTERLY RESULTS
|
Particulars |
30.06.2013 (Unaudited) |
31.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net sales |
8183.500 |
8305.500 |
8827.800 |
|
Total Expenditure |
7282.800 |
7397.600 |
7765.000 |
|
PBIDT (Excluding Other Income) |
900.700 |
907.900 |
1062.600 |
|
Other income |
74.600 |
73.200 |
72.100 |
|
Operating Profit |
975.300 |
981.100 |
1134.900 |
|
Interest |
66.900 |
90.000 |
87.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
908.400 |
891.100 |
1047.500 |
|
Depreciation |
124.300 |
135.200 |
148.400 |
|
Profit Before Tax |
784.100 |
755.900 |
899.100 |
|
Tax |
232.500 |
200.600 |
242.600 |
|
Profit after tax |
551.600 |
555.300 |
656.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
551.600 |
555.300 |
656.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.87
|
6.59
|
6.94
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.69
|
9.22
|
10.07
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.31
|
18.19
|
20.61
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.29
|
0.29
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.31
|
0.20
|
0.67
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.46
|
2.27
|
2.01
|
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs. In
Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
692.000 |
692.300 |
692.600 |
|
Reserves & Surplus |
6538.000 |
7763.700 |
9151.700 |
|
Net
worth |
7230.000 |
8456.000 |
9844.300 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
1070.000 |
1698.500 |
3030.200 |
|
Total
borrowings |
1070.000 |
1698.500 |
3030.200 |
|
Debt/Equity
ratio |
0.148 |
0.201 |
0.308 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
21071.000 |
26620.900 |
30242.100 |
|
|
|
26.339 |
13.603 |
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
|
21071.000 |
26620.900 |
30242.100 |
|
Profit |
1483.000 |
1773.900 |
2098.000 |
|
|
7.04% |
6.66% |
6.94% |
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 |
UNSECURED LOAN:
|
Particulars |
As on 31.03.2013 Rs. in Millions |
As on 31.03.2012 Rs. in Millions |
|
Fixed Deposits * |
|
|
|
Import Finance –
Buyer’s Credit |
462.500 |
980.000 |
|
Overdraft |
1090.900 |
0.000 |
|
|
|
|
|
Total |
1553.400 |
980.000 |
* Includes unclaimed matured fixed deposit
MANAGEMENT
DISCUSSION AND ANALYSIS:
PAINT INDUSTRY
STRUCTURE AND DEVELOPMENT:
There were signs of deceleration in the macro economic scenario in
2012-13. The agricultural sector fared badly in the wake of poorer than
expected rains in 2012, the industrial sector clocked a lower growth and the
services sector was also affected. All these cumulated to an estimated GDP
growth of about 5%. On the brighter side, inflation is coming down, commodity
prices have cooled off and there have been reassurances from the Government on
its commitments to reform measures.
Paint industry, as a whole, continued to do better, in spite of the
adverse developments, growing at a good clip and at a higher rate than GDP. The
growth is fuelled by higher income levels of people across urban and rural
segments, historically low consumption of paints which offers a potential for
the future, growing popularity of branded paints with better quality and longer
durability and the desire of people to remodel and embellish existing dwelling
units. The industry has given a fillip to this demand by expanding its
distribution network, penetrating newer and hitherto unexplored geographies,
offering a wide degree of choice in terms of attributes and prices and
educating consumers and applicators in regard to benefits of various brands and
uses of paint. The industry projects that total Indian revenues, currently
estimated at Rs.260000.000 Millions, may touch around Rs.500000.000 Millions by
FY 2016.
Over the last three years, paint prices have increased by about 30% - to
partially compensate for increase in raw material prices. However, there has
been no significant increase in architectural paint prices since the
third quarter of the fiscal year
and, on the contrary, there has been a marginal decrease. There has been some
softening in prices of titanium dioxide and some other chemicals and crude
prices. However, the overall raw material index for the period was higher than
that of 2011-12.
The ratio of decorative and industrial paints is 70:30 which is expected
to continue in the future in view of various factors enumerated in this Report.
The higher rate of growth in decorative paints augurs well for the industry.
The year witnessed some weakening of enthusiasm in industrial paints
market with marked fall in automotive sales, lower spending in infrastructure
and general slowdown in the industry. The Company does not believe this to be a
permanent phenomenon and is ready to accept challenges of higher demand and
better quality requirements in this segment, as and when they arise.
COMPANY’S
OPERATION:
Over the last 5 years (FY 07-08 to 11-12), the Company’s revenues, net
of excise duty, have grown at CAGR of 17.5%. This is a result of continued
attention to product quality, even where minor improvements may make difference
to the consumers, better service levels, mix improvement in favor of premium
products and water based emulsions, implementation of system related
infrastructure which is commensurate to the needs of the business and timely
and appropriate buying decisions.
Subject architectural (or decorative) business contributes more than 75%
of its revenue. This year, the largest growth, both in terms of volume and value,
came from this business. The focus on expanding geographical coverage through
large dealer networks continued unabated. The Company successfully implemented
an integrated Customer Relationships Management (CRM). Once fully utilized,
this will enhance communication, feedback and service levels to subject
customers to a great level and will help to bring down lead time, inventory and
the overall working capital.
Subject concentrated on promoting luxury brands and improved
formulations as well as looks and packaging of all its products. Subject
premium brands viz., Breathe Easy, Silk and Weathercoat Allguard continued to
perform well in all the markets. Effectiveness of subject traditional brands
such as Walmasta, Rangoli Easy Clean and Bison Emulsion were strengthened and
subject was rewarded by positive reactions from the market. Breathe Easy, as
the members would be aware, is a paint which contains very low volatile organic
chemicals (VOC) and is suitable for schools and hospitals and for the elderly and
those who suffer from breathing problems. Subject now offers both emulsion and
enamel paints in this category. Silk continues to be subject premium product in
the interior space – with a unique texture, richness and feel. Weathercoat
Allguard is a Silicon Based Exterior Water Based Paint with enhanced water
resistance. Durability of subject products, even in the face of harsh and
destructive climatic conditions, is proven to be superior and does not make any
compromise in this respect. This has earned the confidence of the customers in
the long run, as is evidenced by its results.
Subject innovates in terms of new products and offerings with varied
uses through constant technological advancement and upgrading to be able to tap
every consumer segment. Some of its recent additions include niche products
like Roofing and Sealing Compounds, Wood Coatings and Sealers. Weathercoat Kool
and Seal is one such product which, when applied on roofs, ills cracks (known
as elastomeric property) and bounces off heat. Weathercoat Heat Reflecting
paint is a matching product, with similar properties, for walls and facades. In
the Industrial and Protective Coatings Segment, subject has made technological
advances to offer better products with varied uses.
Recently, the subject has launched “Lewis Berger Design Stories”, which
will offer “readymade designer room themes” with premium designer and texture
paint concepts to its customers. These are known as Sussanne Roshan Collection
– developed for Company with the renowned interior designer, Sussanne Roshan.
This was launched after considerable market studies which 7 show that consumers
are increasingly looking for expert professional interior décor advice while
setting up their homes. The limited edition themes that are being launched in
the first phase include ‘Metropolis’ for living rooms, ‘Yin Yang’ for dining
rooms, ‘Shutters by the Sea’ for bed rooms. Subject will create awareness
around this through various promotional activities and digital platforms where
consumers can avail these themes. The Lewis Berger Design Stories address this
latent need in the consumer space by providing them with readymade room themes
which include wall textures, furnishings and furniture. The latter will be
supplied by “The Charcoal Project (TCP).”
In keeping with subject customer orientation, the Company provides a
Preview facility, available both online and offline, bringing value and
convenience to today’s busy but quality conscious consumers. Using the latest
simulation software, consumers can check out different colour schemes on
photographs of their homes to help them choose just the right combination prior
to actual painting. Subject Home Painting business and Prolinks – which cater
to large projects including the hospitality industry and corporate office
blocks, offer hassle free painting of buildings and were doing well with repeat
orders.
The newly introduced product range in the field of Construction
Chemicals is performing well and the growth in sales in this area matched
subject expectations.
Subject’s Industrial Business comprises General Industrial, Automotive,
Protective Coatings and Powder Coatings. The reversal in the industry and
infrastructure sector affected these Businesses in varying degrees. That said,
it needs to be mentioned that subject posted growth in revenues in all these
segments by venturing into new areas with higher values, distributing new
products, taking measures to improve quality and offering customers certain
unique properties in regard to its products. Subject efforts in these respects
led to improvement in profitability in some areas. There are dedicated Research
and Development Teams for these Businesses – offering specific solutions to all
industrial coatings requirement.
Subject recently won the Economic Times Bengal Corporate Award for Best
Entity in New Product / Process Development in the area of new products in East
India and Construction World Award for the fastest growing paint company in
India.
FOCUS AND OUTLOOK
FOR 2013-14:
The Company believes that considering the size of the Indian market, the
low consumption rate per capita and the expected growth in this area, as set
out earlier in this Report, there is enough opportunity for the industry to
thrive in the foreseeable future. These are specifically offered by increased
need of housing in major urban centers, higher incomes in rural areas as well
as in Tier II and Tier III towns, better availability of quality and branded
paints all across the country, increase in square feet of walls per capita –
where independent houses are increasingly replaced by apartments and clusters
and conversion of mud and clay houses to bricks and mortar ones. It is
apocryphal to attribute this growth to higher disposable income. The Company
believes that paint is a necessity and a part of the routine expenditure of a
household. Unless painted, walls and structures lose their strength and metals
corrode. This realization is sinking in. One other fact is that repainting is a
much cheaper alternative to give a new and fresh look to a house than a major
refurbishing work.
Subject is focusing on developing its premium emulsion category which
has witnessed significant growth in the last few years. Moreover, through
product innovation, it is trying to capture market opportunities for
technically superior products in the decorative paints segment. In the
forthcoming year, subject will try and bring newer varieties in various
categories such as wood coatings, primers, distempers, interior finishes and
texture coatings to cater to the market demand and address the carefully
identified needs of the customers.
In the Industrial Category, comprising more than 20% of subject
business, The Company believes that there is enough scope in uncharted areas
and unexplored customers. With enhanced and sustained quality of products, The
Company has commenced its efforts to get into these markets. New products in
the areas of Floor Coatings, Road Marking Paints, Fire Proof / Retardant
Solutions, etc., are expected to give a fillip to the Protective Coatings
business where the spending on infrastructure has to rise in the long term.
These will of course need focused efforts in R & D, Manufacturing and
Marketing.
PROJECTS:
The first phase of the modern and automated water based paint plant at
Hindupur in Andhra Pradesh is expected to be completed by the early second half
of 2013. After the first phase, the capacity of the plant will be 80,000 MT/per
annum. Once fully completed, the capacity of the plant will be 3,20,000 MT/per
annum for water based paints and 1,00,000 MT/per annum for emulsions, used as
intermediates in the production of these paints.
Subject has also initiated work on a separate unit at Hindupur for its
British Paints Division which will further
augment Capacity by 30,000 MT of paints and 6,000 MT of resins per annum.
The Company is happy to report that the first phase of expansion of the
water based plant at Rishra from 18,000 MT/per annum to 40,000 MT/per annum,
with fully automatic filling line and robotic palletisation system has been
completed in September, 2012. After the entire expansion is complete, the
capacity of the water based paint will be 78,000 MT/per annum.
Work on expansion of the water based paint plant at Goa from 28,000
MT/per annum to 40,000 MT/per annum has also been completed. Based on demand,
this can be further taken up to 78,000 MT/per annum.
Resin manufacturing capacity at Goa is being increased by 6,000 MT/per
annum. Storage facilities of the plant are being simultaneously enhanced.
Subject is setting up a powder coating plant at Jejuri in Pune,
Maharashtra with an initial capacity of 1,800 MT/per annum. This will be
commissioned during the year. This can be enhanced to 3,600 MT/per annum in the
future.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10185174 |
01/03/2010
* |
926,000,000.00 |
STANDARD
CHARTERED BANK |
19, N.S.
ROAD, KOLKATA – 700 001, WEST BENGAL, INDIA |
A80659956 |
|
2 |
10159037 |
18/03/2009 |
580,000,000.00 |
HDFC
BANK LIMITED |
HDFC
BANK HOUSESENAPATI BAPAT MARGLETTER, LOWER PAREL W, MUMBAI – 400 013,
MAHARASHTRA, INDIA |
A60860749 |
|
3 |
10132650 |
16/10/2008 |
270,000,000.00 |
CORPORATION
BANK |
DHARMTOLLA
BRANCH, 8 LENIN SARANI, KOLKATA – 700 013, WEST BENGAL, INDIA |
A52226917 |
|
4 |
90250293 |
30/03/2000
* |
40,000,000.00 |
PUNJAB
NATIONAL BANK |
PARK
STREET BRANCH, 44 PARK STREET, KOLKATA – 700 017, WEST BENGAL, INDIA |
- |
|
5 |
90250209 |
12/03/1997 |
50,000,000.00 |
INDUSTRIAL
RECONSTRUCTION BANK OF INDIA |
19,
NETAJI SUBHASD ROAD, KOLKATA – 700 001, WEST BENGAL, INDIA |
- |
|
6 |
90250132 |
23/07/1996
* |
100,000,000.00 |
SMALL
INDUSTRIES DEVELOPMENT BANK OF INDA |
VIKAS
DEEP, 22 STATION ROAD, LUCKNOW – 226 019, UTTAR PRADESH, INDIA |
- |
|
7 |
90251118 |
05/02/1997
* |
18,000,000.00 |
UNION
BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, 1/1, CAMAC STREET, KOLKATA – 700 016, WEST BENGAL, INDIA |
- |
|
8 |
90250113 |
15/09/1995 |
20,000,000.00 |
STATE
BANK OF INDIA |
COMMERCIAL
BRANCH, 24; PARK STREET, KOLKATA – 700 016, WEST BENGAL, INDIA |
- |
|
9 |
90250029 |
22/06/1994 |
27,500,000.00 |
PUNJAB
& SIND BANK |
8
OLD COURT HOUSE STREET, KOLKATA – 700 001, WEST BENGAL, INDIA |
- |
|
10 |
90249997 |
07/01/1994 |
5,000,000.00 |
CENTRAL
BANK OF INDIA |
PARK
STREET BRANCH, 1; PARK STREET, KOLKATA – 700 001, WEST BENGAL, INDIA |
- |
* Date of charge modification
FIXED ASSETS:
Tangible
Assets:
·
Land :
Freehold
Leasehold
·
Buildings :
Freehold
Leasehold
·
Plant and Machinery
·
Furniture and Fittings
·
Equipment
·
Motor Cars and Other Vehicles
Intangible
Assets:
·
Computer Software
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER AND NINE MONTHS ENDED 31ST DECEMBER 2013
(Rs. In Millions)
|
Particulars |
Quarter Ended ( Unaudited) |
Nine Months Ended ( Unaudited) |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
1.
Income from operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
8792.400 |
8272.900 |
25226.900 |
|
b) Other operating income |
35.400 |
32.600 |
89.900 |
|
Total
income from Operations(net) |
8827.800 |
8305.500 |
25316.800 |
|
2.Expenditure |
|
|
|
|
a) Cost of material consumed |
4609.600 |
4635.600 |
13481.900 |
|
b) Purchases of stock in trade |
781.400 |
710.100 |
2160.200 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(6.900) |
(350.900) |
(277.500) |
|
d) Employees benefit expenses |
412.900 |
409.900 |
1246.200 |
|
e) Depreciation and amortization expenses |
148.400 |
135.200 |
407.900 |
|
f) Other expenditure |
1968.000 |
1992.900 |
5834.900 |
|
Total expenses |
7913.400 |
7532.800 |
22853.600 |
|
3. Profit from operations before other income and
financial costs |
914.400 |
772.700 |
2463.200 |
|
4. Other income |
72.100 |
73.200 |
219.900 |
|
5. Profit from ordinary activities before finance costs |
985.500 |
845.900 |
2683.100 |
|
6. Finance costs |
87.400 |
90.000 |
244.300 |
|
7. Net profit/(loss) from ordinary activities
after finance costs but before exceptional items |
899.100 |
755.900 |
2438.800 |
|
8. Exceptional item |
-- |
-- |
-- |
|
9. Profit from ordinary activities before tax
Expense: |
899.100 |
755.900 |
2438.800 |
|
10.Tax expenses |
242.600 |
200.600 |
675.700 |
|
11.Net
Profit / (Loss) from ordinary activities after tax (9-10) |
656.500 |
555.300 |
1763.100 |
|
12.Extraordinary Items (net of tax expense) |
-- |
-- |
-- |
|
13.Net Profit / (Loss) for the period (11 -12) |
656.500 |
555.300 |
1763.100 |
|
14.Paid-up
equity share capital (Nominal value Rs.2/- per share) |
69.30 |
69.29 |
69.30 |
|
15. Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
16.i) Earnings per share (before extraordinary
items) of Rs.2/- each) (not annualised): |
|
|
|
|
(a) Basic and diluted |
1.89 |
1.60 |
5.09 |
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
86763856 |
86755464 |
86763856 |
|
- Percentage of shareholding |
25.04 |
25.04 |
25.04 |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
Nil |
Nil |
Nil |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
-- |
-- |
-- |
|
Percentage of shares (as a % of total share capital of the
company) |
-- |
-- |
-- |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
259717461 |
259717461 |
259717461 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
|
|
|
|
Percentage of shares (as a % of total share capital of the
company) |
74.96 |
74.96 |
74.96 |
|
B.
Investor Complaints |
Three Months Ended 31.12.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Receiving during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unreserved at the end of the quarter |
Nil |
Notes:
· The Company has only one business segment - Paints.
· During the period, the company has allotted 8392 equity shares to its employee on their exercise of the options granted to them earlier, pursuant to Employee Stock Option Plan (ESOP).
· Figures for the previous periods have been regrouped, wherever necessary
· The above results, as reviewed by the audit committee, were approved and taken on record by the board of directors at its meeting held on 1st February, 2014. These results have been subjected to a ‘Limited Review’ by the statutory auditors of the company.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.32 |
|
|
1 |
Rs.100.04 |
|
Euro |
1 |
Rs.82.65 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
72 |
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.