MIRA
INFORM REPORT
|
Report Date : |
21.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
AKZO NOBEL INDIA LIMITED (w.e.f. 31.03.2010) |
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Formerly Known
As : |
ICI INDIA LIMITED |
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Registered
Office : |
Geetanjali
Apartment, 1st Floor, 8-B, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
12.03.1954 |
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Com. Reg. No.: |
21-021516 |
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Capital
Investment / Paid-up Capital : |
Rs. 467.000
Millions |
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CIN No.: [Company Identification
No.] |
L24292WB1954PLC021516 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALA05853B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer
of Paints. |
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No. of Employees
: |
1854 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 33910000 |
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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 company having fine track record. The rating reflects company’s healthy financial risk profile supported
by sizeable market share as well as strong brand position in the decorative
paints segment and adequate liquidity position of the company. Trade relations are reported as fair. Business is active. Payment
terms are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund manager
Jim Chanos has been keenly following the political and economic development in
the dragon economy and has figured out something that is quite worrying. He is
of the view that the Chinese economy could be heading toward trouble on account
of new Chinese President Xi Jingping’s very aggressive anti-corruption drive.
Chanos believes that many things such as apartment sales, luxury products, etc.
were largely bought with dirty money. And it is now beginning to impact
consumption. This may indeed be bad news for an economy that is struggling to
transition from an investment-driven export-oriented economy to a domestic
consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period with
an annualized return of 20 % ! Equities came in second with annualized return
of 15.5 % ! However, while these returns may seem mouthwatering, the fact is
that the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term debt: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
19.11.2013 |
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
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-33-22267462)
LOCATIONS
|
Registered
Office : |
Geetanjali
Apartment, 1st Floor, 8-B, Middleton Street, Kolkata – 700071,
West Bengal, India |
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Tel. No. |
91-33-22267462 |
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Fax No. |
91-33-22277925 |
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E-Mail |
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Website |
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Corporate Office : |
DLF Epitome Building No 5, Tower A, 20th Floor, Cyber City, DLF Phase III, Gurgaon – 122002, Haryana, India |
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Tel. No. |
91-124-2540400 |
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Fax No. |
91-124-2540849 |
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Plant (Coatings)/ Thane Office : |
Plot
No. 1/1 TTC Industrial Area, Thane Belapur Road, Kopar Khairane, Navi Mumbai –
400709, Maharashtra, India |
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Tel. No.: |
91-22-27780000 |
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Fax No.: |
91-22-27780025 |
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E-Mail : |
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PLANT LOCATIONS: |
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Coatings: |
· Hyderabad Works, Balanagar, Hyderabad - 500037, Andhra Pradesh, India Plot No 62 P, Hoskote Industrial Area, Pilgumpa Village,
Bangalore - 562114, Karnataka, India Plot No. GAE-1 (Part), GAF-1 & GAF-2, Industrial Area,
Ghirongi (Malanpur), Bhind - 477117, Madhya Pradesh, India Plot No. A-42, Phase-VIIIB, Focal Point, SAS Nagar, Mohali
- 160059, Punjab, India |
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Chemicals : |
Plot No. E-19/20, MIDC Area, Mahad, Raigad – 402301, Maharashtra, India |
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Headquarters
: |
Located at · Gurgaon, Haryana, India |
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Research and
Technology Centre : |
Located at · Thane, Maharashtra, India |
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Surface Chemistry : |
Located at · Thane, Maharashtra, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. N Kaviratne CBE |
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Designation : |
Chairman |
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Qualification : |
Bachelor of Arts (Honours) degree with a major in Economics from Mumbai University |
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Date of Appointment : |
01.10.2010 |
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Name : |
Mr. A Jain |
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Designation : |
Managing Director (upto 31 December 2013) |
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Name : |
Mr. Jayakumar Krishnaswamy |
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Designation : |
Managing Director |
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Date of Birth/ Age: |
49 Years |
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Qualification : |
Mechanical Engineer |
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Date of Appointment : |
01.03.2014 |
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Name : |
Mr. Himanshu Agarwal |
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Designation : |
Whole-time Director |
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Date of Birth/ Age: |
44 Years |
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Qualification : |
Chartered Accountant, Company Secretary and Cost and Management Accountant |
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Date of Appointment : |
02.09.2013 |
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Name : |
Mr. Amit Jain |
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Designation : |
Non-Executive Director |
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Date of Birth/ Age: |
50 Years |
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Qualification : |
management degree from the Faculty of Management Studies, Delhi, and has completed an Advanced Management Program from the Wharton Business School |
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Date of Appointment : |
02.01.2014 |
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Name : |
Mr. Robert Molenaar |
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Designation : |
Non-Executive Director |
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Date of Birth/ Age: |
54 Years |
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Qualification : |
Graduation in Polymer Chemistry from University Enschede and post-graduation from the Harvard Business School. |
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Date of Appointment : |
14.05.2013 |
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Name : |
Ms. S Govil (Alternate Director to Mr. R Molenaar) |
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Designation : |
Director |
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Name : |
Mr. R Gopalakrishnan |
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Designation : |
Non-Executive Director |
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Qualification : |
Bachelor of Science in Physics from the University of Calcutta and has a B.Tech from IIT, Kharagpur |
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Name : |
Mr. Raj S Kapur |
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Designation : |
Non-Executive Director |
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Date of Birth/ Age: |
September, 1950 |
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Qualification : |
Chemical Engineer from the Indian Institute of Technology (IIT), Kanpur and a Masters in Business Administration (MBA) in Finance & Marketing from the Central Michigan University, USA. He also holds a Masters in Polymer Engineering from Case Western University, USA. |
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Date of Appointment : |
01.03.2014 |
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Name : |
Ms. Renu S Karnad |
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Designation : |
Non-Executive Director |
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Qualification : |
Law graduate from the University of Bombay and has a post-graduate degree in Economics from the Delhi School of Economics |
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Name : |
Dr. Sanjiv Misra |
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Designation : |
Non-Executive Director |
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Date of Birth/ Age: |
67 Years |
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MPA and PhD |
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Date of Appointment : |
14.05.2010 |
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Name : |
Mr Arvind Uppal |
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Designation : |
Non-Executive Director |
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Qualification : |
Chemical Engineer from IIT, Delhi and a Masters in Business Administration from the Faculty of Management Studies, New Delhi |
KEY EXECUTIVES
|
Name : |
Mr H Agarwal |
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Designation : |
Chief Financial Officer |
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Name : |
Mr R Guha |
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Designation : |
Company Secretary / Chief Internal Auditor |
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Audit Committee : |
· Ms. R S Karnad (Chairperson) Mr. R Gopalakrishnan Mr. A Jain Mr. R S Kapur Mr. R Molenaar Dr. S Misra Mr. A Uppal |
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Nomination and
Remuneration Committee : |
· Mr. R Gopalakrishnan (Chairman) Mr. A Jain Ms. R S Karnad Mr. R S Kapur Mr. N Kaviratne CBE Dr. S Misra Mr. A Uppal |
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Stakeholders
Relationship Committee : |
· Dr. S Misra (Chairman) Mr. Jayakumar K Mr. H Agarwal |
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CSR Committee : |
· Mr. R S Kapur – Chairman Mr. Jayakumar K Mr. H Agarwal |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of Shareholder |
Total
No. of Shares |
Total
Shareholding as a % |
|
(A) Shareholding of Promoter and Promoter Group |
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|
34044335 |
72.96 |
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|
34044335 |
72.96 |
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Total shareholding of Promoter and Promoter Group (A) |
34044335 |
72.96 |
|
(B) Public Shareholding |
|
|
|
|
|
|
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|
2405481 |
5.16 |
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|
24940 |
0.05 |
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|
276 |
0.00 |
|
|
2083985 |
4.47 |
|
|
1061281 |
2.27 |
|
|
600 |
0.00 |
|
|
600 |
0.00 |
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|
5576563 |
11.95 |
|
|
|
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|
3225324 |
6.91 |
|
|
|
|
|
|
3454460 |
7.40 |
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|
234054 |
0.50 |
|
|
125578 |
0.27 |
|
|
9850 |
0.02 |
|
|
86609 |
0.19 |
|
|
2990 |
0.01 |
|
|
1048 |
0.00 |
|
|
25081 |
0.05 |
|
|
7039416 |
15.09 |
|
Total Public shareholding (B) |
12615979 |
27.04 |
|
Total (A)+(B) |
46660314 |
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) |
46660314 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Paints. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
1854 (Approximately) |
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Bankers : |
· Citibank Deutsche Bank HDFC Bank Limited Hongkong and Shanghai Banking Corporation Royal Bank of Scotland Standard Chartered Bank State Bank of India |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
BSR and
Associates Chartered
Accountants |
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Address: |
Building No. 10,
8th Floor, Tower-B, DLF Cyber City, Phase II, Gurgaon - 122002,
Haryana, India |
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Tel No.: |
91-124-2549191 |
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Fax No.: |
91-124-2549101 |
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Holding Company: |
Imperial Chemical Industries Limited, England (holding company upto 3 June 2012 and related party having significant influence thereafter) |
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Ultimate Holding
Company: |
Akzo Nobel N.V., Netherlands |
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Fellow subsidiaries
: |
· Akzo Nobel Amides Company, Limited Akzo Nobel Paints Lanka (Private) Limited Akzo Nobel Car Refinishes Indonesia Akzo Nobel Paints Taiwan Limited Akzo Nobel Chang Cheng Limited Akzo Nobel Paints Vietnam Limited Akzo Nobel China Investment Company Limited Akzo Nobel Polymer Chemicals (Ningbo) Company, Limited Akzo Nobel Decorative Coatings B.V. Akzo Nobel Polymer Chemicals B.V. Akzo Nobel Functional Chemicals bv Akzo Nobel Polymer Chemicals LLC Akzo Nobel Ltda-Divisao Titas EM PO Akzo Nobel Powder Coatings (Ningbo) Company, Limited Akzo Nobel Powder Coatings SAS Akzo Nobel Powder Coatings B.V. Akzo Nobel Pulp and Performance Chemicals AB Akzo Nobel Powder Coatings Korea Company, Limited Akzo Nobel REP Off BV Akzo Nobel Powder Coatings S.A.E. Akzo Nobel (Shanghai) Company Limited Akzo Nobel Powder Coatings South Africa Pty Limited Akzo Nobel Argentina S.A. Akzo Nobel Pty. Limited Akzo Nobel Asia Pte. Limited Akzo Nobel Surface Chemistry AB Akzo Nobel Boya Sanayi ve Ticaret A.S. Akzo Nobel Surface Chemistry L.L.C. Akzo Nobel Car Refinishes (Singapore) Pte Limited Akzo Nobel UAE Paints L.L.C. Akzo Nobel Car Refinishes (Suzhou) Company Limited
AkzoNobel Paints Singapore Pte Limited Akzo Nobel Car Refinishes Australia Pty Limited EKA Chemicals AB Akzo Nobel Car Refinishes B.V. ICI (Malaysia) Holdings Sdn Bhd Akzo Nobel Car Refinishes SL ICI Dulux (Pty) Limited Akzo Nobel Chang Cheng Coatings (Guangdong) Company,
Limited ICI India Research and Technology Centre Akzo Nobel Chemicals AG International Paint - Finland Akzo Nobel Chemicals International B.V. International Paint - Vietnam Akzo Nobel Coatings (Dongguan) Company Limited International Paint Japan K.K. Akzo Nobel Coatings (Jiaxing) Company Limited International Paint Limited Akzo Nobel Coatings (Tianjin) Company, Limited International Paint Ltda Akzo Nobel Coatings CZ, a.s. International Paint - Ukraine Akzo Nobel Coatings GmbH International Farbenwerke GmbH Akzo Nobel Coatings Inc. International Färg AB Akzo Nobel Coatings International B.V. International Maling A/S Akzo Nobel Coatings Limited International Paint (Akzo Nobel Chile) Ltda Akzo Nobel Coatings S.P.A. International Paint (Hong Kong) Limited Akzo Nobel Coatings Sdn Bhd International Paint (Korea) Limited Akzo Nobel Cross-Linking Peroxides (Ningbo) Company
Limited International Paint (Nederland) B.V. Akzo Nobel Decorative Coatings B.V. International Paint (Panama) Inc. Akzo Nobel Decorative Paints France S.A. International Paint (Taiwan) Limited Akzo Nobel Functional Chemicals AB International Paint Limited Akzo Nobel Industrial Finishes (Hong Kong) Limited International Paint LLC Akzo Nobel Industrial Paints, S.L. International Paint of Shanghai Co Limited Akzo Nobel International Paint (Suzhou) Company Limited International Paint Pazarlama Limited Sirketi Akzo Nobel Ltda International Paint Sdn Bhd Akzo Nobel N.V. International Paint Singapore Pte Limited Akzo Nobel Packaging Coatings GmbH International Peinture S.A. Akzo Nobel Packaging Coatings Limited IP Singapore Pte -Vietnam Akzo Nobel Packaging Coatings S.A. Keum Jung Akzo Nobel Peroxides Limited Akzo Nobel Packaging Coatings S.A.S Pinturas Inca S.A. Akzo Nobel Paints (Asia Pacific) Pte Limited PT International Paint Indonesia Akzo Nobel Paints (Malaysia) Sdn. Bhd. Shanghai ICI Research and Development and Management
Company Limited Akzo Nobel Paints (Thailand) Limited Tianjin Akzo Nobel Peroxides Company Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
126690000 |
Equity Shares |
Rs.10/- each |
Rs. 1267.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
46660314 |
Equity Shares |
Rs.10/- each
|
Rs. 467.000
Millions |
FOOT NOTES:
(i) In 2011-12, 21,967,544 shares were held by Imperial Chemical Industries Limited, England, the holding Company. Imperial Chemical Industries Limited, England ceased to be the holding company with effect from 4 June 2012 on allotment of new shares as per a scheme of amalgamation (Refer to note 2). The ultimate holding company is Akzo Nobel N.V., Netherlands (‘the Promoter Group’), which does not hold any shares directly in the Company.
(ii) Reconciliation
of equity shares outstanding at the beginning and at the end of the year:
|
PARTICULARS |
31 March 2014 |
|
|
|
Numbers |
R. In Millions |
|
Opening balance |
46,660,314 |
466.603 |
|
Add: Shares allotted on amalgamation |
-- |
-- |
|
Less: Buy back of shares |
-- |
-- |
|
|
46,660,314 |
466.603 |
In 2011-12, 11,125,983 shares of Rs. 10 each were alloted in accordance with a scheme of amalgamation, and pending such allotment were disclosed as “Share capital pending allotment “ in the balance sheet.
(iii) During the previous year, 1,300,000 equity shares were bought back at a consideration of Rs. 1,209 million (including related expenses of Rs. 13 million), in terms of the shares buy back scheme open between 2 July to 13 July 2012.
This was accounted as below:
- The nominal value of shares bought back, i.e., Rs. 13 million, was adjusted against the share capital. An equal amount was reduced from General reserve and credited to Capital Redemption Reserve, as per the provision of the Companies Act, 1956. The difference aggregating to Rs. 1,196 million between the consideration paid and the nominal value of shares was adjusted against the General Reserve.
All shares bought back were extinguished during that year. The Promoter Group had further acquired 1.01 million shares in the Company on 31st July 2012. As a result of the above share buyback and their extinguishment and also of further acquisition of shares by the Promoter Group, its share holding in the company went up from 68.88% to 72.96%.
(iv) The Company has only one class of equity shares, having a par value of Rs. 10 per share. Each shareholder is eligible to one vote per share held. The Company declares and pays dividend in Indian Rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regualtion. In the event of liquidation, normally, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.
(v) Shares in the
Company held by each shareholder holding more than 5% of equity share capital:
|
PARTICULARS |
31.03.2014 |
|
|
|
No. of shares |
% of shares held |
|
Imperial Chemical Industries Limited,
England |
22,977,544 |
49.24% |
|
Akzo Nobel Coatings International B.V., The
Netherlands |
8,626,648 |
18.49% |
|
Akzo Nobel Chemicals International B.V., The
Netherlands |
2,439,847 |
5.23% |
(vi) Number of equity shares of Rs. 10 each bought back in the five years immediately preceding the Balance Sheet date, aggregates to 5,336,281 (2012-13: 53,36,281)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
467.000 |
467.000 |
368.000 |
|
(b) Reserves & Surplus |
8011.000 |
10586.000 |
13931.000 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
111.000 |
|
Total
Shareholders’ Funds (1) + (2) |
8478.000 |
11053.000 |
14410.000 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
121.000 |
47.000 |
26.000 |
|
(c) Other long term liabilities |
143.000 |
190.000 |
191.000 |
|
(d) long-term provisions |
674.000 |
618.000 |
629.000 |
|
Total Non-current Liabilities (3) |
938.000 |
855.000 |
846.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
4926.000 |
4785.000 |
4161.000 |
|
(c) Other current
liabilities |
1175.000 |
1171.000 |
906.000 |
|
(d) Short-term provisions |
4872.000 |
5188.000 |
1757.000 |
|
Total Current Liabilities (4) |
10973.000 |
11144.000 |
6824.000 |
|
|
|
|
|
|
TOTAL |
20389.000 |
23052.000 |
22080.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
5025.000 |
3548.000 |
3563.000 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
306.000 |
1057.000 |
148.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
500.000 |
2700.000 |
850.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1032.000 |
901.000 |
1188.000 |
|
(e) Other Non-current assets |
18.000 |
16.000 |
4.000 |
|
Total Non-Current Assets |
6881.000 |
8222.000 |
5753.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
5786.000 |
6772.000 |
9185.000 |
|
(b) Inventories |
3242.000 |
3149.000 |
3334.000 |
|
(c) Trade receivables |
3076.000 |
2516.000 |
2260.000 |
|
(d) Cash and cash
equivalents |
722.000 |
857.000 |
739.000 |
|
(e) Short-term loans and
advances |
514.000 |
1291.000 |
543.000 |
|
(f) Other current assets |
168.000 |
245.000 |
266.000 |
|
Total Current Assets |
13508.000 |
14830.000 |
16327.000 |
|
|
|
|
|
|
TOTAL |
20389.000 |
23052.000 |
22080.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
23717.000 |
21797.000 |
19425.000 |
|
|
|
Service Income |
279.000 |
332.000 |
260.000 |
|
|
|
Other Operating Income |
183.000 |
191.000 |
193.000 |
|
|
|
Other Income |
567.000 |
1381.000 |
1123.000 |
|
|
|
TOTAL (A) |
24746.000 |
23701.000 |
21001.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
11726.000 |
10845.000 |
10126.000 |
|
|
|
Purchase of stock-in-trade |
2204.000 |
1990.000 |
1868.000 |
|
|
|
Employee benefits expense |
1939.000 |
1753.000 |
1473.000 |
|
|
|
Other expenses |
6537.000 |
5727.000 |
5269.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and stock-in-trade |
(146.000) |
120.000 |
(604.000) |
|
|
|
TOTAL (B) |
22260.000 |
20435.000 |
18132.000 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
2486.000 |
3266.000 |
2869.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
15.000 |
89.000 |
39.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2471.000 |
3177.000 |
2830.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
437.000 |
386.000 |
366.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
2034.000 |
2791.000 |
2464.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
532.000 |
603.000 |
446.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
1502.000 |
2188.000 |
2018.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5015.000 |
8214.000 |
6276.000 |
|
|
|
|
|
|
|
|
|
Add |
ACQUIRED ON
AMALGAMATION |
-- |
-- |
2075.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to general reserve |
660.000 |
1050.000 |
1040.000 |
|
|
|
Proposed Dividend |
3499.000 |
3733.000 |
959.000 |
|
|
|
Tax on Dividend |
595.000 |
634.000 |
156.000 |
|
|
|
Provision for dividend no longer required written back |
0.000 |
26.000 |
0.000 |
|
|
|
Provision for dividend tax no longer required written back |
0.000 |
4.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1763.000 |
5015.000 |
8214.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods (FOB basis) |
734.000 |
593.000 |
444.000 |
|
|
|
Reimbursement of expenses |
34.000 |
43.000 |
50.000 |
|
|
|
Service income |
274.000 |
260.000 |
215.000 |
|
|
|
Others |
26.000 |
11.000 |
13.000 |
|
|
TOTAL EARNINGS |
1068.000 |
907.000 |
722.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3114.000 |
2722.000 |
2933.000 |
|
|
|
Components and Spare Parts |
9.000 |
12.000 |
58.000 |
|
|
|
Capital Goods |
29.000 |
78.000 |
50.000 |
|
|
TOTAL IMPORTS |
|
2812.000 |
3041.000 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
32.18 |
46.49 |
42.08 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2014 |
|
|
|
|
1st Quarter |
|
Net Sales |
|
|
6411.000 |
|
Total Expenditure |
|
|
5746.200 |
|
PBIDT (Excl OI) |
|
|
664.800 |
|
Other Income |
|
|
291.700 |
|
Operating Profit |
|
|
956.500 |
|
Interest |
|
|
6.300 |
|
Exceptional Items |
|
|
26.700 |
|
PBDT |
|
|
976.900 |
|
Depreciation |
|
|
133.100 |
|
Profit Before Tax |
|
|
843.800 |
|
Tax |
|
|
292.000 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
551.800 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
551.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
6.07 |
9.23 |
9.61 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.58 |
12.80 |
12.68 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.39 |
14.46 |
11.69 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24 |
0.25 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23 |
1.33 |
2.39 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
368.000 |
467.000 |
467.000 |
|
Reserves & Surplus |
13931.000 |
10586.000 |
8011.000 |
|
Share Application money
pending allotment |
111.000 |
0.000 |
0.000 |
|
Net
worth |
14410.000 |
11053.000 |
8478.000 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
19425.000 |
21797.000 |
23717.000 |
|
|
|
12.211 |
8.809 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
19425.000 |
21797.000 |
23717.000 |
|
Profit |
2018.000 |
2188.000 |
1502.000 |
|
|
10.39% |
10.04% |
6.33% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
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
CALCUTTA HIGH COURT
CASE STATUS INFORMATION SYSTEM
|
Case Status : Pending |
||||
|
|
||||
|
Status of CIVIL SUITS (CS) 291 of 2012 |
||||
|
|
||||
|
RELIANCE COMMUNICATIONS LIMITED Vs. AKZO NOBEL INDIA LIMITED |
||||
|
|
||||
|
Pet's Adv. : RAJIV LALL |
||||
|
|
||||
|
Res's Adv. : |
||||
|
Court No. : 42 Last Listed On : Friday, June 27, 2014 |
||||
|
Category : MONEY CLAIMS / COMPENSATION / DAMAGES / MESNE PROFITS |
||||
|
|
||||
|
Case Updated on: Thursday, June 26, 2014 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
90199062 |
04/01/2002 * |
71,000,000.00 |
DEUTSCHE BANK AG |
BANGALORE BRANCH, RAHEJA TOWER; NO.26-27; M.G. ROAD, BANGALORE, KARNATAKA, INDIA |
- |
|
2 |
90197288 |
04/01/2002 * |
710,000,000.00 |
DEUTSCHE BANK |
BANGALORE BRANCH
M.G. ROAD, BANGALORE, KARNATAKA - |
- |
* Date of charge modification
BUSINESS ENVIRONMENT
Indian economy faced another year of strong headwinds both from global factors and domestic issues. GDP growth in fiscal year 2013-14 is estimated at around 5% (previous year 4.5%). Overall industrial activity slowed down with the Index of Industrial production (IIP) reflecting a marginal de-growth in 2013-14 compared to a growth of 1% in the previous year and 3% in the earlier year (2011-12).
The year also saw significant volatility in foreign exchange rates in mid-2013 which impacted business profitability; certain strong exchange control measures were taken by RBI during that period, some of which have since been rolled back. On the positive side, the Companies Act, 2013 has replaced the Companies Act, 1956 with several provisions to protect investor interests, especially minority shareholders, improving governance standards and mandating corporate participation in CSR etc.
FINANCE AND ACCOUNTS
Revenue for the year at Rs. 24179.000 millions is 8% ahead of previous year, with contribution from all segments. EBITDA from business operations at Rs. 1,919 million grew marginally ahead of previous year; however, profit after tax for the year at Rs. 1502.000 millions declined compared to previous year’s Rs. 2188.000 millions mainly on account of lower income from investments and certain non-recurring income included in the previous year’s results.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
The Indian Coatings industry has been growing over past several years at a rate well ahead of the country’s GDP growth. The industry has two main sub-segments: Decorative Paints and Performance Coatings, comprising Protective, Powder, Marine, Auto and Coatings for specialized applications and is served by both organised and unorganised sectors.
Decorative Paints account for approx 70% of the industry. The main drivers for the growth of this business have been consumers’ shift to premium products, shortening of repainting cycle and better demand from Tier II and Tier III cities. Another important driver for demand for Decorative paints is the new homes underpinned by rising income levels, easy availability of finance for housing, shift from joint families to nuclear families and rapid urbanisation.
Performance Coatings business, which constitutes nearly 30 per cent of the Coatings market in India, is essentially a B2B market in contrast to the Decorative paints, which is largely B2C market. This business is technology intensive with a diverse set of growth drivers, which include key customer relationships, sustained focus on R&D and Innovation and strong emphasis on selling a solution rather than a product.
BUSINESS PERFORMANCE
COATINGS
Coatings segment recorded a total revenue of Rs. 23242.000 millions during the year 2013-14, compared to the previous year’s Rs. 21426.000 millions, a growth of 8.5%. Segment profit however declined to Rs. 1473.000 millions, reflecting impact of rupee depreciation during the year and general slow-down in the economy. Despite tough market conditions, the Company continued to pursue its long term objectives through investment in strengthening the brands, developing new markets, capability building and capacity expansion.
DECORATIVE PAINTS
Some of the initiatives which supported the growth were:
• Introduction of Weather shield Next Generation for professional users;
• Reinforcing Sun reflect proposition through Weather shield Sunreflect campaign;
• Introduction of Fabrique Moment - new range of inspired finishes under Velvet touch Trends umbrella.
• Launch of VT - Fashion for Walls and communication restage for WS Max.
• Expansion of Distributor based servicing of hitherto underserved markets.
• The business has started its operations to service the Bangladesh market during the year by appointing a selling agent in that country.
PERFORMANCE COATINGS
Automotive and Aerospace Coatings
The highlights of the business for 2013-2014 were the launch of:
• ‘Duco Auto-Star’ for the mid-market segment,
• Bodyguard project, which is an integrated solution for strategic partnership with top insurance companies and
• Color Helpdesk.
Marine Coatings business focuses on coatings solutions for ships, trawlers, supply vessels and coastal fishing boats. The business provides comprehensive coatings solutions to new ship construction as well as maintenance and repair. The business is battling a general slowdown in the shipping industry with pressures on both volumes and margins. Initiatives to expand into new avenues to propel growth as well as de-risking were continued.
Protective Coatings business provides coatings solutions to segments like oil and gas, public infrastructure projects such as airports and stadia, power generation, mining and minerals, etc. Though the overall market for protective coatings faced several challenges, there are indications of revival of demand in the industry. During the
year the business introduced Enviroline series of products, Interthane 138HS - a low cost high solid PU finish and “Intertuf” a surface and sea water tolerant epoxy primer.
Industrial Coil Coatings business continued its growth momentum and has implemented several initiatives to improve its market position. The year saw new product launches and better price realization in select product lines. Polydure®1000 RAL9010 - a food safe coating, was launched during the year. Concerted efforts to secure product approvals from potential customers are on hand.
Powder Coating business, which caters mainly to white goods, automotive and general industry, registered a healthy topline growth. New initiatives to apply Powder coating technology to the Auto-Body sector are being pursued. A low bake powder coating in Genset Canopy market was successfully commercialized during the year. New opportunities with OEMs of Tractors and Light commercial vehicles and Architectural coatings are being explored.
Packaging Coating business, hitherto being run as an ‘import and sell’ operation, is in the process of setting up a local manufacturing facility to cater to the growing Indian market in a cost effective manner.
CHEMICALS
This segment consisting of Functional Chemicals and Surface Chemistry businesses recorded a turnover of Rs. 936.000 millions compared to the previous year’s Rs. 894.000 millions, a growth of 5%. Segment profit, however, declined to Rs. 103.000 millions mainly due to fall in product prices and adverse product mix. A specialized Lab to cater to the Surface Chemistry requirements of the Agrochemical industry is being set up at the Thane site. Opportunities to source some products locally using AkzoNobel’s technologies are under evaluation.
Going forward, the Company will continue to closely monitor the global trends in the availability and price movements of all key inputs and shall strive to safeguard its supply lines. Cost reduction and value enhancement projects are also being pursued to counter inflation/ ensure supply security. However, volatility in currency exchange rates could negate the effects of some of the above actions and put pressure on margins. The Company follows a Risk Management policy under which all material foreign currency exposures are hedged through forward covers, to protect against swings in exchange rates.
The Company will continue to stay focused on growing ahead of the market, with emphasis on serving its consumers through superior technical inputs and solutions and continuous efforts to expand footprint in its areas of strength.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
(a) Claims against the Company not acknowledged as debts |
50.000 |
50.000 |
|
(b) Sales tax matters under appeal |
188.000 |
215.000 |
|
(c) Excise matters in dispute / under appeal |
88.000 |
88.000 |
|
(d) Industrial relations and other matters under dispute |
2.000 |
2.000 |
|
(e) Bank guarantees ( third parties, etc.) |
-- |
-- |
|
(f) Income tax matters in dispute / under appeal * |
|
|
|
NOTE * The Income tax assessments for the Company have been
completed upto the financial year ended 31 March 2010. Arising from such
assessments and appellate orders, the demands aggregate Rs. 1309.000 millions
(2012-13 : Rs. 1166.000 millions), and the refunds aggregate Rs. NIL (2012-13
: Rs. 1186.000 millions). The Company as well as the Income tax department
have filed appeals on these matters. Pending decisions in the appeals,
neither the refunds nor the liabilities for the demands have been recognised
in the accounts. The Company, based on its assessment of such cases, is of
the view that the final outcome is not likely to have significant adverse
impact on the financial statements. |
||
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE
2014
PART I
(Rs. In Millions)
|
Particulars |
Year Ended |
|
30.06.2014 |
|
|
(Unaudited) |
|
|
1
Income from operations |
|
|
(a)
Net sales (net of excise duty) |
6279.300 |
|
(b)
Other operating income |
131.700 |
|
Total
income from operations (net) |
6411.000 |
|
|
|
|
2
Expenses |
|
|
(a)
Cost of materials consumed |
3081.600 |
|
(b)
Purchase of stock-in-trade |
506.700 |
|
Changes
in inventories of finished goods, work-in-progress and stock-in-trade |
79.200 |
|
(d)
Employee benefits expense |
509.500 |
|
(e)
Depreciation and amortisation expense |
133.100 |
|
(f)
Other expenses |
1569.200 |
|
Total
expenses |
5879.300 |
|
3
Profit from operations before other income, finance costs and exceptional
items (1-2) |
531.700 |
|
4
Other Income |
291.700 |
|
5
Profit from ordinary activities before finance costs and exceptional
items (3+4) |
823.400 |
|
6
Finance cost |
6.300 |
|
7
Profit from ordinary activities after finance costs but before exceptional
Items (5-6) |
817.100 |
|
8
Exceptional Items -income |
26.700 |
|
9
Profit from ordinary activities before tax (7+8) |
843.800 |
|
10
Tax expense |
292.000 |
|
11
Net profit from ordinary activities after tax (9-10) |
551.800 |
|
12
Paid - up equity share capital (ordinary shares of Rs 10/- each) |
466.600 |
|
13
Reserves excluding Revaluation Reserve as per balance sheet of previous
accounting year |
|
|
14
Basic and diluted Earnings per share (of Rs. 10 each) (not annualised) |
11.83 |
|
|
|
|
A PARTICULARS OF
SHAREHOLDING |
|
|
1 Public
shareholding |
|
|
- Number of Shares |
12615979 |
|
- Percentage of shareholding |
27.04% |
|
|
|
|
2 Promoter and Promoter
Group Shareholding |
|
|
a) Pledged/ Encumbered |
|
|
- Number of shares |
-- |
|
- Percentage of Share (as a % of the total
shareholding of promoter and promoter group) |
-- |
|
- Percentage of share (as a % of the total share
capital of the company) |
-- |
|
|
|
|
b) Non-encumbered |
|
|
- Number of shares |
34044335 |
|
- Percentage of Share (as a % of the total
shareholding of promoter and promoter group) |
100% |
|
- Percentage of share (as a % of the total share
capital of the company) |
72.96% |
|
|
|
|
|
|
|
B PARTICULARS OF
INVESTOR COMPLAINTS (Nos.) |
|
|
|
|
|
Pending at the beginning of the quarter |
-- |
|
Received during the quarter |
1 |
|
disposed of during the quarter |
1 |
|
Remaining unresolved at the end of the quarter |
-- |
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER
ENDED 30 JUNE 2014
|
Particulars |
Quarter Ended |
|
30.06.2014 (Unaudited) |
|
|
1
Segment Revenue |
|
|
a)
Coatings |
6136.800 |
|
b)
Others |
274.200 |
|
Total
income from operations (net) |
6411.000 |
|
|
|
|
2
Segment Results [Profit before interest and tax from each segment] |
|
|
a)
Coatings |
529.800 |
|
b)
Others |
29.200 |
|
Total |
559.000 |
|
|
|
|
Finance Cost |
6.300 |
|
Other Unallocated Income /(Expenditure) |
264.400 |
|
|
|
|
Exceptional items - income |
26.700 |
|
Total Profit before Tax |
843.800 |
|
|
|
|
3. Capital Employed |
|
|
(Segment Assets – Segment Liabilities) |
|
|
-
Coating |
6444.700 |
|
-
Other |
679.200 |
|
Unallocated |
1873.000 |
|
Total Capital Employed in Segment |
8996.900 |
Note :
- Segment Revenue, Results and Capital Employed figures include the respective amounts identifiable to each of the segments. Other un-allocable items in Segment Results include income from investment of surplus funds of the Company and unallocable corporate expenses.
-''Unallocated' in Capital Employed includes un-allocable corporate assets, liabilities and investments.
FIXED ASSETS
Tangible Assets
· Land
Buildings
Plant
and Machinery
Motor
Vehicles, etc.
Furniture
and Fixtures
Office
Equipments
Leasehold
Improvements
Data
processing Equipment
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.60.67 |
|
|
1 |
Rs.100.81 |
|
Euro |
1 |
Rs.80.73 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
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.