MIRA INFORM REPORT
|
Report Date : |
22.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
FINOLEX INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506,
Maharashtra |
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|
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|
Country : |
India |
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|
|
Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of
Incorporation : |
28.03.1981 |
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|
Com. Reg. No.: |
024153 |
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|
Capital Investment
/ Paid-up Capital : |
Rs.1240.868 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L40108PN1981PLC024153 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
KLPF00119A |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange |
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Line of Business
: |
Manufacturer of PVC Pipes and fittings. |
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|
|
|
No. of Employees
: |
1063 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 29000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established and reputed company having fine track
record. The rating reflects healthy financial risk profile marked by adequate liquidity
position and fair profitability of the company. Trade relations are reported as fair. Business is active. Payments 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.
INDIAN ECONOMIC OVERVIEW
US investment bank Goldman
Sachs has upgraded its outlook on Indian markets as it expects positive
impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term Rating : A+ |
|
Rating Explanation |
Adequate degree of safety and low credit
risk |
|
Date |
05 July 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term Rating : A1 |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk |
|
Date |
05 July 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 PARTED BY
|
Name : |
Mr. S Krishna Moorthy |
|
Designation : |
General Manager Account and Finance
|
|
Contact No.: |
91-9371276569 |
|
Date : |
21.04.2014 |
LOCATIONS
|
Registered Office/ Factory1 : |
Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506,
Maharashtra, India |
|
Tel. No.: |
91-2114-237251 |
|
Mobile No.: |
91-9371276569 (Mr. S Krishna Moorthy) |
|
Fax No.: |
91-2114-237252 |
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E-Mail : |
|
|
Website : |
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|
Area: |
30 Acers |
|
Location: |
Owned |
|
|
|
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Factory2 : |
Pawas Road, Pawas, Ratnagiri 415612, Maharashtra, India |
|
Tel. No.: |
91-2352-238027 / 28 / 29 / 30 / 31 |
|
Fax No.: |
91-2352-238033 / 238045 |
|
E-Mail : |
|
|
|
|
|
Factory3 : |
D-1/10, MIDC, Chinchwad, Pune-411019, Maharashtra, India. |
|
Tel. No.: |
91-20-27443706 |
|
Fax No.: |
Not Available |
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|
|
|
Branch office: |
Located at ·
Ahmedabad ·
Bangalore ·
Chennai ·
Cochin ·
Indore ·
Mumbai ·
New Delhi ·
Kolkata ·
Secunderabad ·
Coimbatore |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Pralhad P. Chhabria |
|
Designation : |
Non-executive Chairman (Upto 11th August, 2012) |
|
|
|
|
Name : |
Mr. Kishan P. Chhabria |
|
Designation : |
Executive Vice Chairman (Upto 11th August, 2012) |
|
|
|
|
Name : |
Mr. Prakash P. Chhabria |
|
Designation : |
Executive Chairman (effective 11th August, 2012) |
|
|
|
|
Name : |
Mr. Sanjay K. Asher |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Kanaiyalal N. Atmaramani |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Dara N. Damania |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Saurabh S. Dhanorkar |
|
Designation : |
Managing Director (Effective 11th August, 2012) |
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|
|
|
Name : |
Mr. Shrikrishna N. Inamdar |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Prabhakar D. Karandikar |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Sanjay S. Math |
|
Designation : |
Director (Operations) |
|
|
|
|
Name : |
Dr. Sunil U. Pathak |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Panyam Subramaniam |
|
Designation : |
Assistant Managing Director and Chief Financial Officer |
KEY EXECUTIVES
|
Name : |
Mr. Anil Atre |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. S Krishna Moorthy |
|
Designation : |
General Manager Account and Finance
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1343599 |
1.08 |
|
|
63725448 |
51.35 |
|
|
65069047 |
52.43 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
65069047 |
52.43 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1147123 |
0.92 |
|
|
41649 |
0.03 |
|
|
950 |
0.00 |
|
|
5625817 |
4.53 |
|
|
6815539 |
5.49 |
|
|
|
|
|
|
8044699 |
6.48 |
|
|
|
|
|
|
26676739 |
21.50 |
|
|
15978314 |
12.88 |
|
|
1511043 |
1.22 |
|
|
293103 |
0.24 |
|
|
783425 |
0.63 |
|
|
1400 |
0.00 |
|
|
515 |
0.00 |
|
|
432600 |
0.35 |
|
|
52210795 |
42.07 |
|
Total Public shareholding (B) |
59026334 |
47.57 |
|
Total (A)+(B) |
124095381 |
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) |
124095381 |
0.00 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Promoter and
Promoter Group
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
Amit Katara |
18,782 |
0.02 |
|
Amit M Katara |
950 |
0.00 |
|
Amrita Katara |
22,125 |
0.02 |
|
Amrita Mukesh Katara |
950 |
0.00 |
|
Katara Amit Mukesh |
5,400 |
0.00 |
|
Katara Amrita Mukesh |
3,500 |
0.00 |
|
Katara Aruna Mukesh |
1,46,720 |
0.12 |
|
Katara Mukesh Dolumal |
3,500 |
0.00 |
|
Katara Mukesh Dolumal |
23,030 |
0.02 |
|
Deepak Kishan Chhabria |
80,921 |
0.07 |
|
Kavita Sanjay Raheja |
37,002 |
0.03 |
|
Kavita Sanjay Raheja |
55,877 |
0.05 |
|
Kishan Parsram Chhabria |
200 |
0.00 |
|
Kishan Parsram Chhabria |
1,70,342 |
0.14 |
|
Priya Vijay Chhabria |
60,200 |
0.05 |
|
Rishi Vijay Chhabria |
1,350 |
0.00 |
|
Sunita Kishan Chhabria |
1,53,592 |
0.12 |
|
Vijay Kishan Chhabria |
1,06,150 |
0.09 |
|
Vijay Kishan Chhabria |
200 |
0.00 |
|
Vini Deepak Chhabria |
26,400 |
0.02 |
|
Hansika Hiya Prakash Chhabria |
17,500 |
0.01 |
|
Gayatri Prakash Chhabria |
17,600 |
0.01 |
|
Prakash Pralhad Chhabria |
2,17,549 |
0.18 |
|
Prakash Pralhad Chhabria |
200 |
0.00 |
|
Pralhad Parsram Chhabria |
1,73,559 |
0.14 |
|
Orbit Electricals Private Limited |
2,33,18,901 |
18.79 |
|
Finolex Cables Limited |
3,94,32,597 |
31.78 |
|
Finolex Cables Limited |
7,60,000 |
0.61 |
|
Katara Dental Private Limited |
2,13,950 |
0.17 |
|
Total |
6,50,69,047 |
52.43 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Public and holding
more than 1% of the total number of shares
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
Anuj A Sheth |
5031002 |
4.05 |
|
Warburg Value Fund |
3850100 |
3.10 |
|
Hiten Anantrai Sheth |
1500000 |
1.21 |
|
Gagandeep Credit Capital Pvt Limited |
1389500 |
1.12 |
|
Total |
11770602 |
9.49 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of PVC Pipes and fittings. |
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Products : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
China |
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Terms : |
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Selling : |
Cash |
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Purchasing : |
L/C |
GENERAL INFORMATION
|
Suppliers: |
Sabec, South Africa |
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Customers : |
Finolex Cable Limited, Pune, Maharashtra, India |
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No. of Employees : |
1063 (Approximately) |
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Bankers : |
·
Bank of India ·
ICICI Bank Limited ·
Bank of Baroda ·
Citibank N.A. ·
Bank of Maharashtra ·
Corporation Bank |
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Facilities : |
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|
|
|
Banking
Relations : |
|
|
|
|
|
Auditors : |
|
|
Name : |
P. G. Bhagwat Chartered Accountants |
|
Address : |
Pune, Maharashtra, India |
|
|
|
|
Solicitors and Advocates: |
|
|
Name : |
Crawford Bayley and Company |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Related parties:: |
·
Pawas Port Limited ·
Finolex Plasson Industries Private Limited |
|
|
|
|
Enterprises over which key management personnel or their relatives
exercise significant influence: |
·
Finolex Cables Limited ·
Finprop Advisory Services Limited ·
Magnum Machine Technologies Limited ·
Kaya Software Private Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs. 1500.000 Millions |
|
|
Unclassified Shares |
|
Rs. 850.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 2350.000
Millions |
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
124095381 |
Equity Shares |
Rs.10/- each |
Rs. 1240.954
Millions |
|
|
Less : Amount in Arrears, other than from
Directors |
|
Rs.
0.086 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 1240.868 Millions |
NOTE:
Reconciliation of
the Shares Outstanding:
|
|
31.03.2013 |
|
|
Equity Shares |
No.
of Shares |
Amount
|
|
At the beginning of the period |
124060235 |
1240.602 |
|
Add: Allotted during the period pursuant
to section 81(1A) of the Companies Act,1956. |
-- |
-- |
|
Outstanding
at the end of the period |
124095381 |
1240.954 |
Terms/ Rights
attached to equity shares:
The Company has only
class of equity shares having a par value of Rs.10 per share. Each holder of
the equity shares is entitled to one vote per share. The Company declares and
pays dividend in Indian rupees. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General
Meeting. During the year ended March 31, 2013, the amount of per share dividend
recognised as distributed to equity shareholders was Rs 5.50 (March 31, 2012
Rs.3.00). In the event of liquidation of the Company, the holders of equity
shares are 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.
|
|
31.03.2013 |
|
|
Details of
shareholders holding more than 5% shares in the company: |
No.
of Shares |
%
of Holding |
|
Equity shares of Rs. 10 each fully paid Finolex Cables Limited |
40192597 |
32.39 |
|
Orbit Electricals Private Limited |
23318901 |
18.79 |
|
TOTAL |
63511498 |
51.18 |
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 |
1240.868 |
1240.868 |
1240.448 |
|
(b) Reserves & Surplus |
5970.759 |
5380.224 |
4962.698 |
|
(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) |
7211.627 |
6621.092 |
6203.146 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1397.087 |
1895.607 |
1954.380 |
|
(b) Deferred tax liabilities (Net) |
936.358 |
898.555 |
800.698 |
|
(c) Other long term
liabilities |
4.676 |
3.762 |
5.875 |
|
(d) long-term
provisions |
136.507 |
36.459 |
51.259 |
|
Total Non-current
Liabilities (3) |
2474.628 |
2834.383 |
2812.212 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
5709.220 |
8228.834 |
5391.423 |
|
(b) Trade
payables |
1851.093 |
1297.481 |
2408.611 |
|
(c) Other
current liabilities |
2341.848 |
1407.510 |
1835.442 |
|
(d) Short-term
provisions |
796.745 |
444.161 |
445.705 |
|
Total Current
Liabilities (4) |
10698.906 |
11377.986 |
10081.181 |
|
|
|
|
|
|
TOTAL |
20385.161 |
20833.461 |
19096.539 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
8788.558 |
7829.296 |
7923.543 |
|
(ii) Intangible
Assets |
6.697 |
10.850 |
1.214 |
|
(iii)
Capital work-in-progress |
506.061 |
853.589 |
721.694 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1274.040 |
1220.855 |
1220.855 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
111.532 |
218.746 |
110.093 |
|
(e) Other
Non-current assets |
84.990 |
729.612 |
632.614 |
|
Total Non-Current
Assets |
10771.878 |
10862.948 |
10610.013 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
2322.046 |
3711.230 |
859.023 |
|
(b)
Inventories |
4827.785 |
3263.208 |
4013.140 |
|
(c) Trade
receivables |
387.210 |
469.342 |
1234.362 |
|
(d) Cash
and cash equivalents |
90.484 |
290.759 |
268.561 |
|
(e)
Short-term loans and advances |
1985.758 |
2235.974 |
2111.440 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
9613.283 |
9970.513 |
8486.526 |
|
|
|
|
|
|
TOTAL |
20385.161 |
20833.461 |
19096.539 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
21448.214 |
20997.752 |
19777.262 |
|
|
|
Other Income |
333.701 |
304.600 |
293.599 |
|
|
|
TOTAL (A) |
21781.915 |
21302.352 |
20070.861 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
14603.496 |
14968.773 |
12704.599 |
|
|
|
Purchases of stock-in-trade |
6.374 |
446.379 |
575.323 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(270.076) |
84.747 |
319.191 |
|
|
|
Employee benefits expense |
720.578 |
564.078 |
505.335 |
|
|
|
Other expenses |
3761.326 |
2766.219 |
3475.968 |
|
|
|
TOTAL (B) |
18821.698 |
18830.196 |
17580.416 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2960.217 |
2472.156 |
2490.445 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
514.489 |
749.607 |
596.628 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2445.728 |
1722.549 |
1893.817 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
544.164 |
755.128 |
744.291 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1901.564 |
967.421 |
1149.526 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
540.195 |
215.908 |
387.816 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1361.369 |
751.513 |
761.710 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
815.605 |
819.254 |
842.944 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
General reserve |
400.000 |
200.000 |
200.000 |
|
|
|
Debenture redemption reserve |
0.000 |
0.000 |
150.000 |
|
|
|
Contingency reserve |
121.500 |
121.500 |
0.000 |
|
|
|
Proposed dividend (including prior year adjustments) |
682.525 |
373.268 |
372.100 |
|
|
|
Tax on dividend |
110.740 |
60.394 |
63.300 |
|
|
BALANCE CARRIED
TO THE B/S |
983.709 |
815.605 |
819.254 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials * |
13192.146 |
12169.562 |
12449.719 |
|
|
|
Stores, spares and components |
25.672 |
26.879 |
13.266 |
|
|
|
Capital goods |
256.208 |
88.054 |
50.647 |
|
|
TOTAL IMPORTS * inclusive of highseas purchases |
13474.026 |
12284.495 |
12513.632 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.97 |
6.06 |
6.14 |
|
Expected Sales (2013-2014): Rs.23100.000 Millions
The above information has been parted by Mr. S Krishna Moorthy (General Manager
Account and Finance)
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.25
|
3.53 |
3.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.87
|
4.61 |
5.81 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.22
|
5.16 |
6.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.15 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.99
|
1.53 |
1.18 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.90
|
0.88 |
0.84 |
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 |
1240.448 |
1240.868 |
1240.868 |
|
Reserves & Surplus |
4962.698 |
5380.224 |
5970.759 |
|
Net
worth |
6,203.146 |
6,621.092 |
235.174 |
|
|
|
|
|
|
long-term borrowings |
1954.380 |
1895.607 |
1397.087 |
|
Short term borrowings |
5391.423 |
8228.834 |
5709.22 |
|
Total
borrowings |
7,345.803 |
10,124.441 |
445.57 |
|
Debt/Equity
ratio |
1.184 |
1.529 |
1.895 |
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 |
19777.262 |
20997.752 |
21448.214 |
|
|
|
6.171 |
2.145 |
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 |
19777.262 |
20997.752 |
21448.214 |
|
Profit |
761.71 |
751.513 |
1361.369 |
|
|
3.85% |
3.58% |
6.35% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF LONG TERM DEBTS:
|
PERTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Debentures
|
1150.000 |
150.000 |
0.000 |
|
Term
loans from banks |
138.245 |
148.520 |
121.481 |
|
Interest
accrued but not due on loans |
88.392 |
122.277 |
0.000 |
|
Unclaimed dividend |
35.128 |
28.165 |
0.000 |
|
|
|
|
|
|
Total |
1411.765 |
448.962 |
121.481 |
|
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 |
Yes |
|
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
Yes |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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:
CASE DETAILS
BENCH:-BOMBAY
|
Lodging No.:- |
CEXAL/300/2007 |
Filing Date:- |
16/11/2007 |
Reg. No.:- |
CEXA/69/2011 |
Reg. Date:- |
09/06/2011 |
|
Petitioner:- |
The Commissioner Of Central Excise-Pune-II |
Respondent:- |
M/S Finolex Industries Limited |
|
Petn.Adv.:- |
Mandar Mahesh Goswami |
|
District:- |
PUNE |
|
Bench:- |
DIVISION |
||||
|
Status:- |
Admitted(Unready) |
Category:- |
CENTRAL EXCISE APPEAL (CEXA) |
|
Last Date:- |
27/03/2012 |
Stage:- |
FOR ADMISSION - FRESH |
|
Last Coram:- |
HON'BLE SHRI JUSTICE J.P. DEVADHAR |
|
HON'BLE SHRI JUSTICE A.R. JOSHI |
|
Act :- |
Central Excise and Salt Act |
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Sales tax deferral loan Deferred sales tax loan is interest free and payable in 10 yearly
installments of various amounts starting from March 2020. |
197.087 |
197.087 |
|
Total |
197.087 |
197.087 |
FINANCIAL REVIEW
The Company has
achieved an all time high profitability during the year. EBIDTA margins have shown
a jump from about 12% to 14% while net profit before tax for the year has
almost doubled from Rs.970.000 Millions to Rs.1900.000 Millions. The turnover
has only marginally increased from Rs.21000.000 Millions to Rs.21450.000
Millions since the captive consumption of PVC resin i.e. internal transfer from
the PVC division to the PVC pipes division is netted from the turnover.
OUTLOOK FOR THE
COMPANY
PVC PIPES AND
FITTINGS DIVISION:
The Company is
India’s largest manufacturer of PVC pipes and fittings. The Company has
achieved 27% growth in the sale of pipes and fittings during the year. This was
possible because of the very strong affiliation to brand “Finolex” instilled by
the Company in the hearts of lacs of consumers spread across the length and breadth
of India. Finolex pipes and fittings are available in every state of the
country and are sold through a network of dealers, subdealers and retailers.
The name Finolex stands for the highest quality of pipes and fittings.
The Company is the
only PVC pipe manufacturer with its own PVC resin plant which gives it complete
control on the quality of pipes.
The Company has
always been deeply involved in the rural markets of India. With the rural
economy poised for a substantial growth, the Company is ideally positioned to
reap the benefits.
Government of
India has declared rural water management as its focus area. It has set a
target of bringing 65.000 Millions hectares of land under irrigation by 2020.
The Twelfth Five Year Plan envisages investment in excess of Rs.5000000.000
Millions for the irrigation sector. Further, an amount of Rs.230000.000
Millions has been set aside for water management. This will give further boost
to the PVC pipes and fittings demand.
Over the years,
the Company’s sales in the northern region have been growing by leaps and
bounds, so much so that the Company felt the need to establish a new plant to
cater to the ever growing demand from this region. The Company selected
Vadodara in Gujarat as the ideal location to set up a green field PVC pipes
plant. The state-of-the-art plant at Masar in Vadodara has been commissioned
during the year with an initial capacity of 30,000 tons per annum (tpa). The
Company plans to scale this up to 50,000 tpa during 2013-14. During 2012-13,
the Company’s aggregate capacity of PVC pipes and fittings has crossed 200000
tpa. The Company is already looking at further expansion / debottlenecking of
the PVC pipes and fittings division.
PVC RESIN
DIVISION:
The domestic
demand for PVC resin has grown by almost 12% in the country whereas the
installed capacity has remained stagnant during the year. India is a net
importer of PVC resin and the demand supply gap has crossed one million tpa.
The per capita consumption of PVC resin in India is hardly 2 kg as compared to
10 kg in China and 12 kg in USA. It is expected that the PVC demand in India
will continue to grow for years to come.
The Company
produces Emulsion PVC resin which is a special grade used in various
applications like artificial leather cloth, footwear, flooring, etc. The value
addition on this application is much higher than Suspension PVC resin. The
Company has recently completed an expansion of the Emulsion PVC resin capacity
from 11,000 tpa to 22,000 tpa. There is already a demand supply gap prevalent
in the Indian market for Emulsion PVC. The Company should be able to place the
additional capacity in the market without difficulty.
CAPTIVE POWER
PLANT DIVISION:
The Company has
been consistently working towards achieving higher productivity and better
operating efficiencies. In order to ensure continuous high quality power, the
Company decided to set up a 43 MW power plant at Ratnagiri. The plant is
designed to also take care of the future power requirements of the Company.
With the coal prices coming down from its peak two years ago, the power plant
is generating substantial savings for the Company as compared to the cost of
purchase of power from the grid. The uninterrupted supply of quality power has
also benefited the production of PVC and PVC pipes in Ratnagiri.
GLOBAL SCENARIO
The global demand
of PVC stands at around 37.5 million tpa. The growth rate for 2012-13 has been
around 2%. As against this, the Indian market for PVC resin has grown by almost
12% during 2012-13. The demand supply gap which currently stands at around 1
million tpa is expected to grow over the years. Globally, the application of
PVC in pipes and fittings accounts for almost 43% of the total consumption. In
India, the application of PVC in pipes and fittings is almost 70% of the total
consumption. The Company’s leadership position in this segment offers it a
distinct advantage.
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10382832 |
28/09/2012 |
1,000,000,000.00 |
CENTRAL BANK OF INDIA |
JEWEL OF PIMPRI,
B WING, 1ST FLOOR, KAMLA CROSS |
B60589355 |
|
2 |
10206653 |
06/03/2010 * |
500,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
MAKER TOWERS
'F', 6TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
A82227877 |
|
3 |
10154826 |
25/03/2009 * |
1,000,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
MAKER TOWERS
'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
A61668513 |
|
4 |
10106975 |
31/03/2011 * |
345,200,000.00 |
AXIS BANK LIMITED |
2ND FLOOR, AXIS HOUSE,BOMBAY
DYEING MILL COMPOUND, |
B12176756 |
|
5 |
90084424 |
31/03/2011 * |
13,957,500,000.00 |
BANK OF INDIA |
PUNE CORPORATE BANKING
BRANCH 1162/6, SHIVAJI NAGAR, UNIVERSITY ROAD,, PUNE, MAHARASHTRA - 411005, |
B12105359 |
Note: * Date of charge
modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
Guarantees given
by the Company’s bankers on behalf of the Company towards performance and
other matters. |
85.412 |
142.144 |
|
Claims against the Company not acknowledged as debt: |
|
|
|
Liabilities in respect
of income tax matters for which the Company has succeeded in appeal but
Income Tax Department has gone in further appeal and exclusive of the effect
of similar matters in respect of pending assessments. |
17.938 |
17.938 |
|
Liabilities in
respect of income tax matters for which the Company has gone in further
appeal and exclusive of the effect of similar matters in respect of pending
assessments. |
43.623 |
41.222 |
|
Excise/customs/service
tax in respect of which either show cause notice is received or the
Company/Department is in appeal. |
437.944 |
267.487 |
|
Amounts claimed
by banks in respect of derivative transactions which are under dispute not
acknowledged as debt. |
1161.753 |
2225.430 |
|
Estimated amount
of contracts remaining to be executed on capital account and not provided for |
171.631 |
331.709 |
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND Nin MONTHS ENDED 31st DECEMBER,
2013
(Rs. In Millions)
|
Sr. No. |
Particulars |
Quarter ended 31-12-2013 (Unaudited) |
Quarter ended 30-09-2013 (Unaudited) |
Year
to ended 31-12-2013 (Unaudited) |
|
1 |
Income
from operations |
|
|
|
|
|
(a) Net
Sales/Income from Operations (Net of excise duty) |
6542.540 |
3848.945 |
15942.801 |
|
|
(b) Other
Operating Income |
56.319 |
50.160 |
190.097 |
|
|
Total
income from operations (net) (a) + (b) |
6598.859 |
3899.105 |
16132.898 |
|
2 |
Expenses (a) Cost
of materials consumed |
5117.070 |
3181.495 |
12404.682 |
|
|
(b) Purchases
of stock-in-trade |
-- |
- |
-- |
|
|
(c)
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(812.702) |
(872.020) |
(1960.838) |
|
|
(d)
Employee benefits expense |
194.853 |
174.857 |
536.929 |
|
|
(e) Depreciation
and amortisation expense |
177.493 |
148.172 |
472.114 |
|
|
(f) Power
and Fuel |
373.390 |
197.023 |
823.218 |
|
|
(g) Other
expenditure |
546.486 |
402.622 |
1388.198 |
|
|
Total
expenses |
5596.590 |
3232.150 |
13664.303 |
|
3 |
Profit / (Loss)
from operations before other income, finance costs and exceptional items (1-2) |
1002.269 |
666.956 |
2468.595 |
|
4 |
Other
Income |
8.866 |
171.725 |
374.937 |
|
5 |
Profit/ (Loss)
from ordinary activities before finance costs and exceptional items(3 + 4) |
1011.135 |
838.681 |
2843.532 |
|
6 |
Finance
costs |
187.721 |
121.935 |
446.755 |
|
7 |
Profit/
(Loss) from ordinary activities after finance costs but before exceptional items(5 - 6) |
823.415 |
716.746 |
2396.776 |
|
8 |
Exceptional
items |
96.432 |
(325.623) |
(768.095) |
|
9 |
Profit /
(Loss) from ordinary activities before tax (7 + 8) |
919.846 |
391.123 |
1628.682 |
|
10 |
Tax
Expense |
280.949 |
116.945 |
489.139 |
|
11 |
Net
Profit/(Loss) from ordinary activities after tax (9-10) |
638.897 |
274.178 |
1139.543 |
|
12 |
Extraordinary
Items (net of tax expense) |
-- |
- |
-- |
|
13 |
Net Profit
/ (Loss) for the period (11 -12) |
638.897 |
274.178 |
1139.543 |
|
14 |
Share of profit
/ (loss) of associates |
-- |
- |
-- |
|
15 |
Minority
interest |
-- |
- |
-- |
|
16 |
Net
Profit/ (Loss) after taxes, minority interest and share of profit of
associates (13 +14 +15) |
638.897 |
274.178 |
1139.543 |
|
17 |
Paid-up equity
share capital (Nominal value Rs. 10 per share) |
1240.954 |
1240.954 |
1240.954 |
|
18 |
Paid-up
Debt capital |
|
|
|
|
19 |
Reserve
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
|
|
|
|
20 |
Debenture Redemption
Reserve |
|
|
|
|
20 |
Earnings
per share (before extraordinary items) (of Rs. 10/-each)(not
annualised): (a) Basic. (b) Diluted ' |
5.15 |
2.21 |
9.18 |
|
20 |
Earnings
per share (after extra ordinary items) (of Rs. 10/-each)(notannualised): (a) Basic . (b) Diluted ' |
5.15 |
2.21 |
9.18 |
|
21 |
Debt
Equity Ratio |
|
|
|
|
22 |
Debt
Service Coverage Ratio |
|
|
|
|
23 |
Interest
Service Coverage Ratio |
|
|
|
|
Sr. No. |
Particulars |
Quarter ended 31-12-2013 (Unaudited) |
Quarter ended 30-09-2013 (Unaudited) |
Year
to ended 31-12-2013 (Unaudited) |
|
A 1 |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
|
Public
shareholding -Number of shares |
59,026,334 |
59,087,784 |
59,026,334 |
|
|
-
Percentage of shareholding |
47.57 |
47.61 |
47.57 |
|
2 |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered - Number of shares |
NIL |
NIL |
NIL |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
NIL |
NIL |
NIL |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
NIL |
NIL |
NIL |
|
|
b)
Non-encumbered |
|
|
|
|
|
- Number of shares - Percentage of shares (as a % of the
total shareholding of promoter and promoter group) |
65,069,047 100.00 |
65,007,597 100.00 |
65,069,047 100.00 |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
52.43 |
52.39 |
52.43 |
|
Particulars |
Quarter
ended 31.12.2013 |
|
B INVESTOR COMPLAINTS |
|
|
Pending at
the beginning of the quarter |
0 |
|
Received
during the quarter |
3 |
|
Disposed
off during the quarter |
3 |
|
Remaining
unresolved at the end of the quarter |
0 |
SEGMENT WISE REVENUE,
RESULT AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
Quarter ended 31-12-2013 (Unaudited) |
Quarter ended 30-09-2013 (Unaudited) |
Year
to ended 31-12-2013 (Unaudited) |
|
SEGMENT
REVENUE Net Sale
/Income from each segment: |
|
|
|
|
PVC |
4910.497 |
3244.959 |
11782.809 |
|
PVC Pipes
& Fittings |
3818.577 |
2778.663 |
10946.421 |
|
Power |
345.536 |
406.096 |
1201.979 |
|
Total |
9074.610 |
6429.718 |
23931.209 |
|
Less:
Intersegment Revenue |
2475.751 |
2530.613 |
7798.311 |
|
Net Sales
/ Income from Operations |
6598.859 |
3899.105 |
16132.898 |
|
SEGMENT RESULTS |
|
|
|
|
Profit /
(Loss) before tax and interest from each segment: |
|
|
|
|
PVC |
711.397 |
378.745 |
15139.09 |
|
PVC Pipes
& Fittings |
339.754 |
236.200 |
931.248 |
|
Power |
31.411 |
103.148 |
232.025 |
|
Total |
1082.562 |
718.093 |
2677.182 |
|
Less: |
|
|
|
|
Interest |
187.721 |
121.935 |
446.755 |
|
Other un
allocable expenditure |
80.104 |
377.818 |
1072.817 |
|
Add: |
|
|
|
|
Other un
allocable income |
105.110 |
172.783 |
471.072 |
|
Total
Profit / (Loss) Before Tax |
919.847 |
391.123 |
1628.682 |
|
CAPITAL
EMPLOYED |
|
|
|
|
Segment
Assets-Segment Liabilities: |
|
|
|
|
PVC |
7806.462 |
7400.419 |
7806.462 |
|
PVC Pipes
& Fittings |
4583.344 |
3838.833 |
4583.344 |
|
Power |
2695.763 |
2742.951 |
2695.763 |
|
Other than
segments |
3722.666 |
2734.469 |
3722.666 |
|
Total |
18808.235 |
16716.673 |
18808.235 |
Note: Exceptional items represent foreign
exchange (loss) /gain and settlement of claim against derivative as below:
(Rs.
In Millions)
|
Sr. No. |
Particulars |
Quarter ended 31.12.2013 (Unaudited) |
Quarter ended 30-09-2013 (Unaudited) |
Year
to ended 31-12-2013 (Unaudited) |
|
a |
Realised |
(327.310) |
(306.355) |
(580.101) |
|
b |
Unrealised |
423.742 |
(19.268) |
(187.994) |
|
c |
Total |
96.432 |
(325.623) |
(768.095) |
- Previous periods 'figures have
been regrouped wherever necessary to conform to the current period's
classification.
- The "Limited Review" of
the financial results of the Company for the half year ended 31.12.2013 has
been completed by the statutory auditors.
- The above results have been
reviewed by audit committee and approved bythe Board at its meeting held
on 25.01.2014
FIXED ASSETS
Tangibles Assets
- Free hold land
- Lease hold land
- Buildings
- Plant and machinery
- Office equipment’s
- Furniture & fixtures
- Vehicles
- Aircraft
Intangibles Assets
- Computer software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No 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.60.34 |
|
|
1 |
Rs.101.41 |
|
Euro |
1 |
Rs.83.38 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
NKT |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
52 |
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.