MIRA INFORM REPORT
|
Report Date : |
23.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
ION EXCHANGE (INDIA) LIMITED |
|
|
|
|
Registered
Office : |
ION House, Dr. E. Moses Road, Mahalaxmi, Mumbai – 400011,
Maharashtra |
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Country : |
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|
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
06.03.1964 |
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|
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Com. Reg. No.: |
11-014258 |
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Capital Investment
/ Paid-up Capital : |
Rs.133.041 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74999MH1964PLC014258 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMI04982F |
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PAN No.: [Permanent Account No.] |
AAACI1726L |
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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
: |
Manufacture and Seller of Ion Exchange Resins, Water
Treatment Plants and Chemical Additives. |
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|
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|
No. of Employees
: |
940 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 7400000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. General financial position of the company is decent. Trade relations are reported as fair. Business is active. Payments
terms are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
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, it carry low
credit risk. |
|
Date |
12.12.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating: A2+ |
|
Rating Explanation |
Strong degree of safety, it carry very low
credit risk. |
|
Date |
12.12.2013 |
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 DECLINED
MANAGEMENT NON CO-OPERATIVE
Contact No.: 91-22-39890909.
LOCATIONS
|
Registered/
Corporate Office : |
ION House, Dr. E. Moses Road, Mahalaxmi, Mumbai – 400011,
Maharashtra, India |
|
Tel. No.: |
91-22-24939520 / 523 / 525 / 31 / 32/24938737 / 39890909 |
|
Fax No.: |
91-22-24938737 |
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E-Mail : |
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Website : |
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Factory 1 : |
581-12-13, GIDC, Ankleshwar Industries Estate, Ankleshwar – 393002,
Bharuch, |
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Factory 2 (International Division): |
R – 14, TTC, MIDC, Near |
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Tel. No.: |
91 22 39890909/ 30472400 |
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Fax No.: |
91 22 27697918 |
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E-Mail : |
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Regional Offices : |
Located at: · Mumbai · Chennai · Delhi · Kolkata |
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Branch Offices : |
Located at: · Ahmedabad · Bangalore · Bhubaneshwar · Chandigarh · Hyderabad · Lucknow · Vadodara · Vizag |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. Rajesh Sharma |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth |
23.09.1954 |
|
Qualification: |
B.Sc., LLB |
|
Date of
Appointment: |
26.03.1996 |
|
|
|
|
Name : |
Mr. Dinesh Sharma |
|
Designation : |
Executive Director |
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|
Name : |
Mr. Aankur Patni |
|
Designation : |
Executive Director |
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|
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|
Name : |
Dr. V. N. Gupchup |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. M P Patni |
|
Designation : |
Director |
|
Date of Birth |
25.09.1945 |
|
Qualification: |
B.E. (Mechanical) |
|
Date of Appointment |
28.09.2001 |
|
|
|
|
Name : |
Mr. T. M. M. Nambiar |
|
Designation : |
Director |
|
Date of Birth |
25.05.1937 |
|
Qualification: |
A.C.A. |
|
Date of
Appointment: |
29.01.2003 |
|
|
|
|
Name : |
Mr. P Sampathkumar |
|
Designation : |
Additional Director |
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Date of Birth |
27.12.1938 |
|
Qualification: |
Chartered Engineer, U.K. Marine Engineer |
|
Date of
Appointment: |
22.03.2005 |
|
|
|
|
Name : |
Mr. Abhiram Seth |
|
Designation : |
Director |
|
Date of Birth |
09.12.1951 |
|
Qualification: |
B.A. (Hons.) Economics, MMS |
|
Date of
Appointment: |
25.07.2008 |
|
|
|
|
Name : |
Mrs. K J Udeshi |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Shishir Tamotia |
|
Designation : |
Director |
|
Date of Birth |
05.09.1949 |
|
Qualification: |
B.E.(Elec.),MBA |
|
Date of Appointment |
24.05.2010 |
KEY EXECUTIVES
|
Name : |
Mr. Milind Puranik |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. Ajay A. Popat |
|
Designation : |
Executive Vice President - Corporate Diversification and
Marketing |
|
|
|
|
Name : |
Mr. Dinesh
Sadasivan |
|
Designation : |
Senior Vice President – Standard Systems and Services |
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|
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|
Name : |
Mr. N. M.
Ranadive |
|
Designation : |
Senior Vice President - Finance |
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|
|
|
Name : |
Mr. S. V.
Mehendale |
|
Designation : |
Senior Vice President - Resin and Membrane Division |
|
|
|
|
Name |
Mr. Prashant K.
Chitnis |
|
Designation |
Senior Vice
President – Technology |
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|
|
|
Name : |
Mr. S. N. Iyengar
|
|
Designation : |
Senior Vice President - Medium Industry Segment |
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|
|
|
Name : |
Mr. Anil Khera |
|
Designation : |
Vice President - Chemical Division |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2014)
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
3297917 |
22.69 |
|
|
488296 |
3.36 |
|
|
2672514 |
18.39 |
|
|
2672514 |
18.39 |
|
|
6458727 |
44.44 |
|
|
|
|
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
6458727 |
44.44 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5234 |
0.04 |
|
|
377 |
0.00 |
|
|
166230 |
1.14 |
|
|
50 |
0.00 |
|
|
171891 |
1.18 |
|
|
|
|
|
|
|
|
|
|
1349287 |
9.28 |
|
|
|
|
|
|
|
|
|
|
3880369 |
26.70 |
|
|
2542332 |
17.49 |
|
|
129553 |
0.89 |
|
|
1010 |
0.01 |
|
|
128543 |
0.88 |
|
|
7901541 |
54.37 |
|
|
|
|
|
Total Public shareholding (B) |
8073432 |
55.56 |
|
|
|
|
|
Total (A)+(B) |
14532159 |
100.00 |
|
|
|
|
|
(C) Shares held by Custodians and against
which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total (A)+(B)+(C) |
14532159 |
100.00 |
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BUSINESS DETAILS
|
Line of Business : |
Manufacture and Seller of Ion Exchange Resins, Water
Treatment Plants and Chemical Additives. |
GENERAL INFORMATION
|
No. of Employees : |
940 (Approximately) |
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Bankers : |
·
Bank of · Canara Bank ·
State Bank of · Axis Bank Limited · Punjab National Bank ·
Export-Import Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
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|
|
|
Advocate and
Solicitors : |
Crawford Bayley and Company |
|
|
|
|
Subsidiaries : |
·
Ion Exchange Enviro Farms Limited ·
Watercare Investments ( ·
Aqua Investments ( ·
Ion Exchange ·
Ion Exchange Asia Pacific ( ·
IEI Environmental Management (M) Sdn. ·
Ion Exchange Environment Management (BD) Limited,
·
Ion Exchange Infrastructure Limited ·
Ion Exchange ·
Ion Exchange and Company LLC, ·
Ion Exchange WTS ( ·
Ion Exchange Projects and Engineering Limited
(w.e.f. 11.04.2011) ·
Global composites and Structural Limited (w.e.f.
29.03.2012) ·
Ion Exchange Safic Pty. Limited, south Africa
(w.e.f. 20.08.2012) ·
Total Water Management Services (India) Limited
(w.e.f. 01.04.2012) |
|
|
|
|
Associates: |
·
Aquanomics Systems Limited ·
IEI Water-Tech (M) Sdn. Bhd., Malaysia * ·
Astha Technical Services Limited ·
Ion Exchange PSS Company Limited, Thailand * ·
Ion Exchange Financial Products Private Limited * |
|
|
|
|
Joint Venture : |
·
Ion Exchange Waterleau Limited |
|
|
|
|
Entity having significant
influence : |
·
IEI Shareholding Trusts |
|
|
|
|
Enterprises
owned or significant influenced by key management personnel of their
relatives: |
· Arkepp and Associates · Ion Foundation |
* Associate Companies of Subsidiaries
CAPITAL STRUCTURE
(AS ON 24.09.2013)
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17000000 |
Equity Shares |
Rs.10/- each |
Rs.170.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14532159 |
Equity Shares |
Rs.10/- each |
Rs.145.322
Millions |
|
|
|
|
|
AS ON 31.03.2013
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17000000 |
Equity Shares |
Rs.10/- each |
Rs.170.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13304103 |
Equity Shares |
Rs.10/- each |
Rs.133.041
Millions |
|
|
|
|
|
NOTE:
(a) Reconciliation
of the shares outstanding at the beginning and at the end of the reporting
period
Rs. in Millions
|
Equity Shares |
31.03.2013 |
|
|
|
No. of Shares |
Rupees |
|
At the beginning
of the period |
13561861 |
135.619 |
|
Issued during
the period – ESOS |
29300 |
0.293 |
|
Less: Shares
extinguished as per scheme of amalgamation
|
287058 |
2.871 |
|
Outstanding at
the end of the period |
13304103 |
133.041 |
(b) Terms/rights attached to equity
shares
The company has only one class of equity shares having a par
value of Rs.10 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividends in Indian rupees. The
dividend proposed by the Boards of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2012, the amount of per
share dividend recognised as distribution to equity shareholders is Rs.2/-
In the event of liquidation of the company, the holders of
equity shares will be entitled to receive remaining assets of the company after
distribution of preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.
(c) Details of shareholders holding more than 5% shares in the company
|
Equity Shares |
31.03.2013 |
|
|
|
No. of Shares |
% of holding |
|
Rakesh
Jhunjhunwala |
875000 |
6.58% |
As per of the company, including its register of shareholders/members
and other declarations received from shareholders regarding beneficial
interest, the above shareholding represents both legal and beneficial ownership
of shares.
(d) Aggregate number of share issued for consideration
other than cash during the period of five years immediately preceding the reporting
date.
The company has issued 15,70,900 shares (2010-2011 :
20,15,700) during the period of five years immediately preceding the reporting
date on exercise of options granted under the Employee Stock Option Scheme
(ESOS) wherein part consideration was received in form of employee services
.
(e)Shares reserved for issued under ESOS
For details of shares allotted under various Employee Stock
Option Schemes (ESOS) and shares reserved for issue under the Employees Stock
Option Scheme (ESOS) of the company
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 |
133.041 |
135.619 |
134.259 |
|
(b) Share Capital Suspense account |
11.803 |
0.000 |
0.000 |
|
(c) Reserves & Surplus |
1694.860 |
1486.764 |
1339.159 |
|
(d) 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) |
1839.704 |
1622.383 |
1473.418 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
47.796 |
23.332 |
40.666 |
|
(b) Deferred tax liabilities (Net) |
39.597 |
61.166 |
61.189 |
|
(c) Other long term
liabilities |
66.850 |
35.323 |
45.095 |
|
(d) long-term
provisions |
48.108 |
47.111 |
50.841 |
|
Total Non-current
Liabilities (3) |
202.351 |
166.932 |
197.791 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
442.150 |
338.914 |
325.965 |
|
(b) Trade payables |
2603.663 |
2748.949 |
2184.800 |
|
(c) Other
current liabilities |
497.749 |
771.492 |
538.024 |
|
(d) Short-term
provisions |
161.181 |
164.029 |
98.367 |
|
Total Current
Liabilities (4) |
3704.743 |
4023.384 |
3147.156 |
|
|
|
|
|
|
TOTAL |
5746.798 |
5812.699 |
4818.365 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
831.343 |
575.694 |
568.226 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
17.099 |
132.759 |
10.579 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
521.009 |
352.824 |
298.900 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
580.517 |
503.422 |
561.645 |
|
(e)
Trade Receivables |
105.103 |
100.590 |
137.891 |
|
(f) Other
Non-current assets |
0.306 |
0.431 |
0.374 |
|
Total Non-Current
Assets |
2055.377 |
1665.720 |
1577.615 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.489 |
0.489 |
0.489 |
|
(b)
Inventories |
431.654 |
410.938 |
384.165 |
|
(c) Trade
receivables |
2668.505 |
3326.034 |
2517.705 |
|
(d) Cash
and cash equivalents |
152.549 |
104.307 |
168.647 |
|
(e)
Short-term loans and advances |
436.626 |
303.438 |
168.075 |
|
(f) Other
current assets |
1.598 |
1.773 |
1.669 |
|
Total
Current Assets |
3691.421 |
4146.979 |
3240.750 |
|
|
|
|
|
|
TOTAL |
5746.798 |
5812.699 |
4818.365 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
7673.374 |
6525.339 |
5713.574 |
|
|
|
Other Income |
58.765 |
90.321 |
85.767 |
|
|
|
TOTAL (A) |
7732.139 |
6615.660 |
5799.341 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
5149.782 |
4423.939 |
3855.627 |
|
|
|
Purchases of Traded Goods |
297.989 |
286.911 |
249.418 |
|
|
|
(Increase)/decrease in inventories of
Finished Goods, Work-in-Progress and Traded Goods |
(29.944) |
(39.509) |
23.215 |
|
|
|
Employee benefit cost |
779.873 |
616.694 |
532.420 |
|
|
|
Other expenses |
1010.603 |
917.893 |
814.547 |
|
|
|
TOTAL (B) |
7208.303 |
6205.928 |
5475.227 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
523.836 |
409.732 |
324.114 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
119.911 |
88.541 |
70.187 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
403.925 |
321.191 |
253.927 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
79.085 |
64.970 |
59.973 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
324.840 |
256.221 |
193.954 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
109.915 |
80.728 |
72.655 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
214.925 |
175.493 |
121.299 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
447.992 |
317.299 |
240.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
16.200 |
13.200 |
12.200 |
|
|
|
Proposed Final Dividend |
29.000 |
27.300 |
27.800 |
|
|
|
Tax on Dividend |
4.900 |
4.300 |
4.400 |
|
|
BALANCE CARRIED
TO THE B/S |
612.817 |
447.992 |
317.299 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
1113.650 |
913.917 |
910.647 |
|
|
|
Freight and other recoveries |
12.100 |
6.902 |
7.025 |
|
|
|
Dividend |
0.000 |
12.230 |
0.000 |
|
|
|
Interest |
0.283 |
0.122 |
0.000 |
|
|
TOTAL EARNINGS |
1126.033 |
933.171 |
917.672 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
702.932 |
703.968 |
661.178 |
|
|
|
Capital Goods |
0.000 |
10.381 |
0.000 |
|
|
|
Traded Goods |
5.296 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
708.228 |
714.349 |
661.178 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.85 |
12.98 |
9.13 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.78
|
2.65 |
2.09 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.23
|
3.93 |
3.39 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.02
|
5.31 |
4.91 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.16 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.27
|
0.22 |
0.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.99
|
1.03 |
1.03 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
134.259 |
135.619 |
133.041 |
|
Share capital Suspende
account |
0.000 |
0.000 |
11.803 |
|
Reserves & Surplus |
1339.159 |
1486.764 |
1694.860 |
|
Net worth |
1473.418 |
1622.383 |
1839.704 |
|
|
|
|
|
|
long-term borrowings |
40.666 |
23.332 |
47.796 |
|
Short term borrowings |
325.965 |
338.914 |
442.150 |
|
Total borrowings |
366.631 |
362.246 |
489.946 |
|
Debt/Equity ratio |
0.249 |
0.223 |
0.266 |
%20LIMITED%20-%20264387%2023-Apr-2014_files/image022.gif)
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
5713.574 |
6525.339 |
7673.374 |
|
|
|
14.208 |
17.593 |
%20LIMITED%20-%20264387%2023-Apr-2014_files/image024.gif)
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
5713.574 |
6525.339 |
7673.374 |
|
Profit |
121.299 |
175.493 |
214.925 |
|
|
2.12% |
2.69% |
2.80% |
%20LIMITED%20-%20264387%2023-Apr-2014_files/image026.gif)
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 |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
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 LOANS
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
Long Term
Borrowings: |
|
|
|
Deposits |
|
|
|
Deposit from Shareholders |
0.351 |
0.065 |
|
Deposit from Public |
15.697 |
16.707 |
|
|
|
|
|
Total |
16.048 |
16.772 |
OPERATIONS
During the financial year ended 31st March, 2013, the net profit after tax of the company was Rs.214.900 Millions, as compared to previous year's net profit after tax of Rs.175.500 Millions. The turnover was higher at Rs.7950.000 millions as compared to Rs.6730.000 Millions of the previous year, showing an increase of 18 %.
FUTURE OUTLOOK
They feel that the downside risk of the global economy has reduced and we expect the Indian economic scenario also to show a substantial improvement in the next couple of years.
The water treatment industry can look forward to a period of growth powered by demand from the expanding municipal and industrial sectors. This industry which the company deals with is likely to be the focus of public and private investment for years to come. The average growth of the water treatment industry in India over the next few years is expected to be about 12%. Globally it is expected to grow by about 7.4%. This optimism is only tempered by the adverse effect which volatile commodities and raw material prices and exchange rate can have over the short term. These two parameters coupled with probable changes in taxation may affect industrial and commodity margins.
Enhanced investment in NRDWP -Rajiv Gandhi National Rural Drinking Water Mission: National Rural Drinking Water Programme and HPCL -Barmer projects give out a strong message of India's undeterred growth and development amidst the stringent economic backdrop. They expect more such policies which will benefit the water treatment industry as water is a key focus area for the Government. The water industry also finds favour with other influencers of the policy making process, as it impacts all segments of society across urban and rural India. The prospects of their industry will be positively reinforced by continued pattern of uneven rainfall, depleting water table across urban and rural and directions issued by the government for treating and re-using of water for industrial, commercial and domestic purposes.
The key business opportunity in future would be Wastewater Treatment, Desalination and Zero Liquid Discharge process catering to industrial as well as municipal domains.
In the field of waste water treatment more than 60% business being unorganized, we expect consolidation to take place with customers moving towards technology which provides high end solutions as well as high quality of service. The company has an advantage on both these fronts which will help it to expand its business. They expect it to be a challenging period for smaller players and new entrants.
Apart from waste water treatment, service management is a challenging and crucial parameter for client acquisition and relationship management. The company has one of the largest and most extensive network of service personnel with an unparalleled ability to serve retail as well as large industrial customers.
The company also enjoys competitive advantage in key areas such as - extensive production facilities, superior human capital, emphasis on innovative technology, research and development and high quality services. They will continue to augment these strengths with further investments in their in house research and development programs and by forging partnerships with leading global technological innovators. This will help the company to continue managing the risk of the uncertain and volatile business environment and maintain its standing as a leader in this field.
They remain committed to continuing their endeavour to remain the premier water treatment company in India with a focus to deliver value to the society as well as to all its stakeholders.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENT
Global Economy
Four years after the global financial crisis some of the dark clouds threatening the global economy have started to lift. There are indications that growth is picking up in Japan and the United States. However, the global economy continues to be fragile and sluggish Developing countries were responsible for more than half of the global growth in2012 and will continue to be the growth engines for the next few years. India and China still outperform most of the countries in terms of growth. While there are hopes of the global economy recovering, the crisis is still not over with even India and China witnessing a substantial slowdown.
Indian Economy
The Indian economy grew at the rate of 5% in 2012 -13 which was the slowest for the decade. Over the past few months the slowdown has become more widespread, it now affects core industries, infrastructure and even the services sector. Growth continues to be hampered by the global economy slowdown, inflation, tight monetary policy, high interest rates and policy bottlenecks. The volatility in the exchange rates has added to the burden faced by the economy. Although, policy measures were taken by the Government and the RBI to reign in the situation, its impact was not immediate. We expect the benefits to flow over a period of time.
Indian Engineering Industry
The Indian engineering industry is now challenged with a dwindling pipeline of orders as new project investments are getting deferred and existing projects are being slowed down. Investments in the industrial segment such as the steel sector and electricity generation were substantially hit the slowdown coupled with the tight monetary policy has also had an adverse impact on the cash liquidity in the industry. In spite of the subdued investment scenario they are still witnessing influx of funds through Government and public-sector enterprises. They have managed to brave the tough environment because of adequate order bank which was available at the start of the financial year.
Services and Chemical Business Segments
These segments were less impacted by the slowdown in the economy. While growth in the market size was limited, the volume of business from existing customers did not witness too much shrinkage. Major players in this segment focused on retaining existing business and prevent erosion in margins. The segment continues to be difficult for new entrants and change in the competitive landscape was more due to internal reorganizations of the major players. Although, margins in the services and chemical business were under pressure, these segments fared better than the engineering industry with respect to both cash flows and margins.
Adverse Impact on Margins
The restricted set of opportunities and the state of the economy has led to intense competition in the industry and consequently a downward pressure on margins. Another factor having an adverse impact on prices was raw material prices. Volatility in the raw material prices reduced during the year but, the high prices continued to put downward pressure on margins.
The Silver Lining
Even with substantial impediments to growth the Indian water treatment market grew at10% in 2012-13 and is expected to grow at a CAGR of 12% till 2017. Further, in spite of the challenging environment, the company's emphasis on total water management solutions with a reputation to provide cost effective and best technological solutions has helped the company to expand its presence in the Indian as well as the global market.
HIGHLIGHTS OF PERFORMANCE
Gross turnover for the year 2012-2013 was Rs.7950.000 Millions. Profit after tax was Rs.214.900 Millions as compared to Rs.175.500 Millions in the previous year.
The Turnover for the year jumped by more than 18% and the profit after Tax showed a marked improvement of more than 22%.
EGMENTWISE OPERATIONAL PERFORMANCE
The business of your company can be segmented into:
1. Engineering
2. Chemicals
3. Consumer Products
Engineering
In this
segment the Company designs, manufactures and sells medium and large size
equipment for water and waste water treatment plants. The segment achieved
turnover of Rs.4770.000 Millions compared to Rs.4110.000 Millions for the previous year.
In spite
of higher turnover the performance of the segment was affected due to Global
economic slowdown, inflation, tight monetary policy, high interest rates and
policy bottlenecks. The segment faced challenges due to postponement of
investment in Infrastructure projects and slow down of investment in existing
projects. Good order bank available at the start of the financial year helped
the segment to tide over the challenge.
The
emphasis of the Company on total water management solutions and company's
strength to provide high quality technological solutions will provide
additional opportunity for growth in the coming year.
Chemicals
The segment
achieved Sales turnover of Rs.2340.000 Millions as compared to Rs.1810.000
Millions of the previous year with a growth of 29 %.
During the
year domestic Sales increased for Conventional and Specialty Resins, Water
Treatment Chemicals, RO chemicals, Mining and Refinery Chemicals business. The
new Refinery process chemical business made a good start this year.
Exports of
resins to US, Europe and Far East have shown a marked improvement; the exports
of resin have grown by 53% over the previous year. New customers developed in
Europe and Korea are likely to further enhance the exports of resins in the
next financial year. Also the focus given to International Markets in FY
2012-13 is likely to increase export business for Water Treatment and RO Chemicals
in the next financial year.
Margins in
the chemicals business remained under pressure due to increase in raw material
prices and depreciation of Rupee. Company has started in house manufacturing of
few intermediates and Raw Materials i.e. Polyamines, Polydadmac, which will
bring down the cost.
The New
Pharma facility in Ankleshwar is operational and the Company has started
manufacturing both excipients and drug actives in this facility. Various
customers from US and Europe have audited the facility as a first step to start
business with us in this segment. Drug Actives have large potential in the US
and European Market. We have also obtained WHO-GMP certification for this
facility. The outlook for this segment is positive.
Consumer
Products
The Home Water
Solutions (HWS) division achieved a turnover of Rs.590.600 millions. The
division showed positive signs of recovery with a net profit of Rs.0.200
Million as compared to a loss of Rs.54.600 Millions in the previous year. The
revenue per employee also showed an increase of Rs.0.037 Million during this
period.
The
Canteen Sales Division (CSD) business which was activated in this year brought
in sales worth Rs.13.200 Millions.
Zero B
launched Eco RO - an innovative eco-friendly water purifier. Eco RO recovers
70%of water compared to 25% recovery from other ROs. This helps save water up
to 80%. For this technological innovation Zero B Eco RO won the prestigious
Water Digest – Water Awards 2012-13 in association with UNESCO for 'Best Water
R&D and Technological Breakthrough'.
The home
water purifier market is a dynamic market with a lot of new players entering
the market as well as new products being launched. Taking the market dynamics
into consideration the company will continue to provide good quality products
and services to meet the requirements of existing and potential customers.
The
institutional division which primarily focuses on segments like construction,
hotels and hospitals, educational institutes, corporate offices and PSUs like
defense establishments, railways, state transport corporations etc showed
improved productivity during this fiscal. The productivity levels have gone up
by almost 25% during this period.
Growing
demand for Sewage treatment in the construction segment and market demand for
the newly introduced 'Membranes Bio Reactor' (MBR) technology has witnessed
changes in the buying pattern of the customers in this segment. The division
has already won prestigious projects for MBR in the education segment and will
continue to focus on MBR prospects in the future. This division has
concentrated on growing the network of authorized dealers to improve the
company's market reach which has resulted in improved performance. In the near
future this division plans to grow the network strength to over 100 dealers
targeting 35%growth in sales over this year's achievement.
This
segment has also expanded its product offering by adding the swimming pool
range and allied accessories which offer large prospects across India. The
pre-fab pool an innovative concept introduced in India by the company is yet
another revolutionary product which will offer cost effective solution for tier
II and III cities.
The needs
of the rural communities is being met by partnering with PHEDs (Public Health
Engineering Departments) across the country in order to make available
efficient, affordable, easy to use and maintain products and technologies.
Expanding the local distribution network in order to reach the remote areas was
another important focus area during the year.
New
fluoride removal hand pump attachment units were launched in this year in
collaboration with NGOs and PHEDs.
In the
current year, the company will continue to increase its reach in the rural market
through the expansion of its network and introduction of products which are
suitable for the rural customers.
EXPORTS
The
company has achieved export turnover of Rs.1110.000 Millions. The major growth was seen in
business from Africa, Middle East and resin business from developed nations
like Europe, Japan etc. The African market is showing good acceptability to
Indian products as well as concern to environment issues, which resulted in
good business from the region. The Market in Middle East specially in UAE is
showing signs of revival. The focus to expand the market for Ion Exchange
resins has resulted in increased business from developed countries.
AMALGAMATION
The Honorable High Court of Bombay, on 24th May, 2013, sanctioned the “scheme of amalgamation” (“the Scheme”) under sections 391 to 394 of the Companies Act, 1956. In accordance with the Scheme, Ion Exchange Services Limited (transferor company) merges with Ion Exchange (India) Limited (“the Company”) with effect from 1st April 2012. The transferor company was engaged in the business of providing total water solutions for industry, homes and communities. The amalgamation is expected to channelize synergies and lead to better utilization of available resources and result in greater economies of scale.
Pursuant to the Scheme, the Assets and Liabilities of transferor Company
were transferred to and vested in the Company with effect from 1st April 2012.
Accordingly, the Scheme has been given effect to in these accounts.
The Company discharged the purchase consideration through issuing 42
fully paid up Equity shares of Rs.10/- each against every 19 Equity shares of
the transferor Company. Equity shares were not allotted by 31st
March 2013.
The Amalgamation has been accounted for under the “Pooling of interest”
method as prescribed under AS -14 “Accounting for Amalgamations” issued by the
Institute of Chartered Accountants of India. Accordingly the accounting
treatment has been given as under –
The assets, liabilities, reserves and credit balance of profit and loss
of the transferor company as at 1st April 2012 have been
incorporated at their book values in the financial statements of the company.
8,28,800 equity shares of Rs.10 each fully paid up of transferor company
stands cancelled. Further, 2,87,058 equity shares of Rs.10 each fully paid up
of the Company held by the transferor company also stands cancelled.
Consequent to this amalgamation and after considering the extinguishment
of shares held in transferor company by the Company, 11,80,256 Equity Shares of
Rs.10 each, aggregating to Rs.1,18,02,560, of the company are to be issued to
the shareholders of the transferor company. Pending allotment of the said
equity shares such amount of Rs.1,18,02,560 has been included in the share capital
suspense account as at 31st March 2013.
The excess of the book value of the investment held by transferor
company in the equity share capital of Company amounts to Rs.1,41,48,997, Investment
held by company in the Equity share capital of transferor Company amounts to
Rs.9,20,948 and the excess of share capital of transferor company over the
amount credited by the company to the share capital suspense account amounts to
Rs.35,11,560 and accordingly the net amount of Rs.1,85,84,505 has been adjusted
to the Capital Reserves of the Company.
Consequently, the financial statement for the year ended on 31st
March 2013 includes the operations of transferor company with effect from 1st
April 2012.
The Company has as per AS-14, during the current year, changed (with
retrospective effect) the method of providing depreciation on fixed assets,
from Written Down Value ('WDV') method to Straight line method (SLM) method at
the rates prescribed in Schedule XIV o# the Companies Act, 1956 in respect of
assets held by transferor company to ensure that uniform set of accounting
policies are followed after amalgamation. Had the Company continued to use the
earlier basis of providing depreciation, the charge to the Profit and loss
account for the current period would have been higher by Rs.47,48,129 and net
block of fixed assets would correspondingly have been lower by Rs..47,48,129.
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge Creation/ Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10435700 |
19/06/2013 |
70,000,000.00 |
Kotak Mahindra Bank Ltd |
36-38A, NARIMAN BHAVAN,
227, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B79132288 |
|
2 |
10384791 |
11/10/2012 |
160,000,000.00 |
Bank of India |
MUMBAI LARGE CORPORATE
BRANCH, ORIENTAL BUILDING, |
B61497384 |
|
3 |
10304936 |
30/08/2013 * |
243,000,000.00 |
EXPORT-IMPORT BANK OF
INDIA |
CENTRE ONE BUILDING,
FLOOR 21, WORLD TRADE CENTRE, |
B85523280 |
|
4 |
10262258 |
23/09/2010 |
10,000,000.00 |
karnataka State financial
corporation |
1/1, THIMMAIAH ROAD,
BANGALORE, KARNATAKA - 560052, INDIA |
A97964266 |
|
5 |
10175605 |
19/08/2009 |
500,000,000.00 |
Bank of India |
MUMBAI LARGE CORPORATE
BRANCH , 70/80 M G ROAD, 4TH FLOOR , FORT, MUMBAI, MAHARASHTRA - 400001,
INDIA |
A69555811 |
|
6 |
10138554 |
06/10/2009 * |
40,500,000.00 |
Karnataka State Financial
Corporation |
1/1,THIMMAIAH ROAD,,
BANGALORE, KARNATAKA - 560052 |
A72058209 |
|
7 |
10098786 |
19/06/2013 * |
70,000,000.00 |
Canara Bank |
INDUSTRIAL FINANCE BRANCH,
NO 83, VENKTADARI COMPLEX, RICHMOND ROAD, BANGALORE, KARNATAKA - 560025,
INDIA |
B79058392 |
|
8 |
10006033 |
10/05/2006 |
450,000,000.00 |
Bank of India |
MUMBAI CORPORATE BANKING
BRANCH, BOI BUILDING, , |
A01369909 |
|
9 |
80007206 |
25/08/2012 * |
2,900,000,000.00 |
Bank of India - Lead Bank |
MUMBAI LARGE CORPORATE
BRANCH , ORIENTAL BUILDING, GROUND FLOOR, 364, D.N.ROAD, FORT, MUMBAI, MAHARASHTRA
- 400001, INDIA |
B57681025 |
|
10 |
90244019 |
29/09/2005 |
504,000,000.00 |
BANK OF INDIA |
MAKER BRANCH, MUMBAI,
MAHARASHTRA, INDIA |
- |
|
11 |
80010700 |
25/08/2012 * |
2,900,000,000.00 |
Bank of India - Lead Bank |
MUMBAI LARGE CORPORATE BRANCH
, ORIENTAL BUILDING, GROUND FLOOR, 364, D.N.ROAD, FORT,, MUMBAI, MAHARASHTRA
- 400001, INDIA |
B57682965 |
|
12 |
90244018 |
24/06/2004 |
504,000,000.00 |
BANK OF INDIA |
MAKER BRANCH, MUMBAI,
MAHARASHTRA, INDIA |
- |
|
13 |
80026088 |
21/08/2012 * |
2,900,000,000.00 |
Bank of India- Lead Bank |
MUMBAI LARGE CORPORATE
BRANCH , ORIENTAL BUILDING, |
B57679946 |
|
14 |
90241116 |
11/07/2005 * |
23,030,000.00 |
BANK OF INDIA |
MAKER BRANCH, MUMBAI,
MAHARASHTRA, INDIA |
- |
|
15 |
90242484 |
25/08/2012 * |
2,900,000,000.00 |
Bank of India - Lead Bank |
MUMBAI LARGE CORPORATE
BRANCH , ORIENTAL BUILDING, GROUND FLOOR, 364 , D.N.ROAD, FORT, MUMBAI,
MAHARASHTRA - 400001, INDIA |
B57682023 |
|
16 |
90352478 |
20/08/1996 |
6,300,000.00 |
HDFC BANK LTD. |
RAMON HOUSE, 169; BACKBAY
RECLAMATION, MUMBAI, MAHARASHTRA, INDIA |
- |
|
17 |
90377676 |
17/09/1991 |
2,000,000.00 |
CENTRAL BANK OF INDIA |
DR. A.B. ROAD, WORLI BRANCH,
MUMBAI, MAHARASHTRA, |
- |
|
18 |
90371659 |
11/09/1989 * |
3,500,000.00 |
ICICI BANK LTD. |
163 BACKBAY RECLAMTION,
MUMBAI, MAHARASHTRA, INDIA |
- |
|
19 |
90377357 |
20/07/1987 |
110,000.00 |
STATE BANK OF INDIA |
YELLAREEDYGUDA BRANCH, HYDERABAD,
ANDHRA PRADESH, INDIA |
- |
|
20 |
90377282 |
07/07/1987 * |
450,000.00 |
STATE BANK OF INDIA |
YELLAREDDYGUDA BRANCH,
HYDERABAD, ANDHRA PRADESH, INDIA |
- |
* Date of charge modification
FIXED ASSETS:
· Land Including
· Property Rights
·
Buildings on
·
Buildings on
· Ownership Blocks
· Ownership Flat in Leasehold
· Premises - DDA
· Plant and Machinery
· Vehicles
· Furniture, Fixture and Office Equipments
·
Leased Assets
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The
Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration:
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration:
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] 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 : |
PDT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.