MIRA INFORM REPORT
|
Report Date : |
20.12.2014 |
IDENTIFICATION DETAILS
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Name : |
NAGARJUNA FERTILIZERS AND CHEMICALS LIMITED |
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Registered
Office : |
D. No. 8-2-248, Nagarjuna Hills, Punjagutta, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
07.11.2006 |
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Com. Reg. No.: |
01-076238 |
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Capital
Investment / Paid-up Capital : |
Rs. 598.065 Millions |
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CIN No.: [Company Identification
No.] |
L24129AP2006PLC076238 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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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 Market Fertilizers and Allied Agri Inputs and providing Micro Irrigation Services and also Wind Energy Generation. |
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No. of Employees
: |
1871 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (29) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 6200000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. There seems some dip in the turnover during 2014, the company has also
incurred a loss. However, trade relations are reported as fair. Business is active.
Payment terms are reported to be slow but correct. The company can be considered for business dealings with some
caution. Note : The share of
the subject company is not traded on BSE from last 30 Days. |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long term Bank facilities = BB |
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Rating Explanation |
Moderate risk of default. |
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Date |
September 22, 2014 |
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Rating Agency Name |
CARE |
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Rating |
Short term Bank facilities = A4+ |
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Rating Explanation |
Minimal degree of safety it carry very high credit risk. |
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Date |
September 22, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DECLINED
Management Non-Cooperative (Contact No.: 91-40-23357200/ 23358405)
LOCATIONS
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Registered / Corporate
Office : |
D. No. 8-2-248, Nagarjuna Hills, Punjagutta, Hyderabad – 500082,
Andhra Pradesh, India |
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Tel. No.: |
91-40-23357200/ 23357204/ 23356414/ 23356418 |
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Fax No.: |
91-40-23354788 |
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E-Mail : |
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Website : |
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Factory 1 : |
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Tel. No.: |
91-884-2360390/ 2360391 |
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Fax No.: |
91-884-2362084/ 23675020 |
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E-Mail : |
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MICRO-IRRIGATION |
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Factory 2 : |
Nachram, |
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Factory 3 : |
Sadashivpet Mandal, Medak District, |
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Factory 4 : |
Halol, Panchmahal District, |
DIRECTORS
AS ON 31.03.2014
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Name : |
Mr. K.S. Raju |
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Designation : |
Chairman |
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Date of Birth/Age : |
29.06.1950 |
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Qualification : |
B. E. (Mech) |
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Experience : |
39 Years |
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Other Directorship : |
- Nagarjuna Oil
Refinery Limited - Nagarjuna Oil
Corporation Limited - Jaiprakash
Engineering and Steel Company Limited - Bhagiradha
Chemicals and Industries Limited - Nagarjuna Agrichem Limited |
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Name : |
Mr. K. Rahul Raju |
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Designation : |
Managing Director |
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Date of Birth/Age : |
31.08.1976 |
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Qualification : |
B.Com (Hons) |
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Experience : |
16 Years |
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Other Directorship : |
- Nagarjuna Oil Refinery
Limited - Nagarjuna Oil
Corporation Limited - The Fertilizer Association of India |
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Name : |
Mr. Chandra Pal Singh Yadav |
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Designation : |
Nominee of KRIBHCO |
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Date of Birth/Age : |
19.03.1959 |
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Qualification : |
MSC, B. Ed, LLB |
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Other Directorship : |
- Nagarjuna Oil
Refinery Limited - Krishak
Bharati Co-operative Limited - KRIBHCO Shyam
Fertilizers Limited - National Coop.
Union of India - Kribhco
Infrastructure Limited - Continental
Multimodal Terminals Limited - Gujarat State Energy
Generation Limited - Bundelkhand
Krishi Utpadan Vipanan Sehkari Samiti - National
Agricultural Cooperative Marketing Federation (NAFED) - Co-operative
Bank of India - Krishi Utpadan
Evan Vipnan Sahakari Samiti - Gramin Vikas
Trust (GVT) - Kribhco Gramin
Vikas Sanstha - Kisan
Bahudesiya Sehkari Samiti Limited - The Anupama
Coop. Veg. and Fruit Growers Mktg. Society Limited - National Coop.
Consumer Federation of India Limited (NCCF) - National Federation
of Urban Coop. Banks and Credit Societies (NAFCUB) - General
Council of NCDC - National Film
and Fine Arts Coop. Limited (NAFFAC) |
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Name : |
Mr. M.P. Radhkrishnan |
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Designation : |
Nominee of SBI |
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Name : |
Dr. N.C.B. Nath |
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Designation : |
Director |
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Date of Birth/Age : |
17.02.1930 |
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Qualification : |
PhD
(Economics), LLB |
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Other Directorship : |
- Nagarjuna Oil Refinery Limited |
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Name : |
Mr. S.R. Ramakrishnan |
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Designation : |
Director |
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Date of Birth/Age : |
04.02.1935 |
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Qualification : |
B.E (Mech) Hons |
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Other Directorship : |
- Nagarjuna Oil
Refinery Limited - Shriram EPC
Limited - Nagarjuna Oil Corporation Limited |
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Name : |
V Anish Babu |
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Designation : |
Nominee of IFCI |
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Name : |
Viney Kumar |
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Designation : |
Nominee of IDBI Bank |
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Name : |
Mr. Yogesh Rastogi |
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Designation : |
Nominee of ICICI Bank Limited |
KEY EXECUTIVES
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Name : |
M Ramakanth |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2014
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
A. Promoter’s Holding |
307233260 |
51.37 |
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B. Non–Promoters Holding |
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1. Institutional Investors |
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a. Mutual Funds and UTI |
1173425 |
0.20 |
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b. Banks, Financial Institutions, Insurance Companies (Central / State
Govt. Institutions / Non-Government Institutions) |
8933409 |
1.49 |
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c. Foreign Institutional Investors |
10082944 |
1.69 |
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2. Others |
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a. Private Corporate Bodies |
66154931 |
11.06 |
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b. Indian Public |
172819586 |
28.90 |
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c. NRIs / OCBs |
5776991 |
0.96 |
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d. Any other (please specify) |
25890457 |
4.33 |
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GRAND TOTAL |
598065003 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Market Fertilizers and Allied Agri Inputs and providing Micro Irrigation Services and also Wind Energy Generation. |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
GENERAL INFORMATION
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Suppliers : |
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Cutomers : |
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No. of Employees : |
1871 (Approximately) |
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Bankers : |
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Facilities : |
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Financial
Institutions : |
· IFCI Limited No.6-9-13, 8th Floor, Taramandal Complex, Saifabad, Hyderabad -
500004, Andhra Pradesh, India · IDBI Trusteeship Services Limited Ground Floor, Asian Building, 17, R Kamani Marg, Ballard Estate,
Mumbai, Maharashtra, India · 3I Infotech Trusteeship Services Limited 3rd To 6th Floor, International Infotech Park, Tower No.5, Vashi
Railway Station Complex, Vashi, Navi Mumbai - 400703, Maharashtra, India |
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Auditors : |
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Name : |
M Bhaskara Rao and Company Chartered Accountants |
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Address : |
Hyderabad - 500082, Andhra Pradesh, India |
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Subsidiaries : |
· Jaiprakash Engineering and Steel Company Limited ·
Nagarjuna Industrial Services and Investments
Private Limited (NISIPL) (previously known as Nagarjuna Mauritius Private
Limited) |
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Step down Subsidiaries : |
· Nagarjuna East Africa Limited * (Subsidiary of
Nagarjuna Industrial Services and Investments Private Limited) * Application
filed with Registrar of Companies, Nairobi for striking off the name of the
company from the Register of Companies. |
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Associates : |
· Nagarjuna Agricultural Research and Development Institute · KVK Raju International Leadership Academy ·
Nagarjuna Foundation |
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Associate to Subsidiary : |
Nagarjuna Spawnt
Gmbh |
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Enterprises significantly influenced by
Key Management personnel or their relatives : |
· Nagarjuna Oil Refinery Limited · Nagarjuna Agrichem Limited · Nagarjuna Corporation Limited · NFCL Employees Welfare Trust |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
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|
6,210,000,000 |
Equity Shares |
Re. 1/- each |
Rs. 6210.000 Millions |
|
20,000,000 |
Preference Shares |
Rs. 90/- each |
Rs. 1800.000 Millions |
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Total |
|
Rs. 8010.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
598,065,003 |
Equity Shares |
Re. 1/- each |
Rs. 598.065 Millions |
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Reconciliation of
the Number of shares outstanding at the beginning and at the end of the reporting
year
|
Particulars |
March 31, 2014 |
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|
Equity Shares of
Re.1/- each |
No. of Shares |
Rs. in Millions |
|
Balance at the beginning of the year |
598,065,003 |
598.065 |
|
Add: On allotment during the year |
-- |
-- |
|
Balance at the end of the year |
598,065,003 |
598.065 |
Rights,
Preferences and Restrictions attached to equity shares
The Company has only one class of equity shares having a par value of
Re. 1/- per share. Each holder of equity shares is entitled to one vote per
shares.
In the event of liquidation of the Company, the holders of equity shares
will be entitled to receive remaining assets of the Company, after distribution
of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders.
Details of
shareholders holding more than 5% of the Shares
|
Particulars |
March 31, 2014 |
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|
Equity Shares of
Re.1/- each |
No. of Shares |
% of holding |
|
Nagarjuna Corporation Limited |
127,068,520 |
21.25% |
|
Nagarjuna Management Services Private Limited * |
78,592,592 |
13.14% |
|
Nagarjuna Holdings Private Limited * |
34,626,130 |
5.79% |
|
Zuari Global Limited |
32,267,741 |
5.40% |
|
Baron Properties Private Limited * |
18,298,969 |
3.06% |
|
White Stream Properties Private Limited * |
3,019,060 |
0.50% |
|
Nagarjuna Staff Betterment Company Private Limited ** |
8,723,277 |
1.46% |
* Shares held by Nagarjuna Management Services Private Limited,
Nagarjuna Holdings Private Limited, Baron Properties Private Limited and White
Stream Properties Private Limited yet to be transferred to Nagarjuna
Corporation Limited in terms of Composite Scheme of Arrangement and
Amalgamation approved by the Hon’ble High Court of Bombay at Mumbai on
September 14, 2012. The equity shares shall be transferred to NCL on the
commencement of trading of NFCL equity shares.
** Shares held by Nagarjuna Staff Betterment Company Private Limited
(NSB) yet to be transferred to Nagarjuna Corporation Limited (NCL) in terms of
Scheme of Amalgamation of NSB into NCL approved by the Hon’ble High Court of
Bombay at Mumbai on March 22, 2012 pursuant to which NSB was merged into NCL.
The equity shares shall be transferred to NCL on the commencement of trading of
NFCL equity shares.
Aggregate number
of shares issued for consideration other than cash
598,065,003 equity shares of Re.1/- each (aggregating to Rs.598.065
Millions) were allotted as fully paid up pursuant to a Composite Scheme of
Arrangement and Amalgamation during the year 2011-12.
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 |
|
|
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|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
598.065 |
598.065 |
598.065 |
|
(b) Reserves & Surplus |
20865.945 |
23202.181 |
22389.090 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
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(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
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Total
Shareholders’ Funds (1) + (2) |
21464.010 |
23800.246 |
22987.155 |
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(3)
Non-Current Liabilities |
|
|
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(a) long-term borrowings |
1917.737 |
3460.098 |
5176.632 |
|
(b) Deferred tax liabilities (Net) |
850.911 |
1920.090 |
1854.709 |
|
(c)
Other long term liabilities |
1450.612 |
409.884 |
384.212 |
|
(d)
long-term provisions |
204.151 |
186.528 |
144.024 |
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Total
Non-current Liabilities (3) |
4423.411 |
5976.600 |
7559.577 |
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(4) Current Liabilities |
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(a)
Short term borrowings |
12145.371 |
25121.925 |
15350.861 |
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(b)
Trade payables |
8774.975 |
4071.316 |
6168.257 |
|
(c)
Other current liabilities |
2080.350 |
3398.202 |
2807.923 |
|
(d)
Short-term provisions |
363.679 |
199.221 |
704.510 |
|
Total
Current Liabilities (4) |
23364.375 |
32790.664 |
25031.551 |
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TOTAL |
49251.796 |
62567.510 |
55578.283 |
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II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
29873.513 |
30666.718 |
31631.717 |
|
(ii)
Intangible Assets |
343.980 |
393.120 |
442.260 |
|
(iii)
Capital work-in-progress |
301.249 |
63.215 |
8.665 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
529.367 |
531.117 |
531.117 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
192.435 |
221.707 |
123.179 |
|
(e)
Other Non-current assets |
3.574 |
44.572 |
18.300 |
|
Total
Non-Current Assets |
31244.118 |
31920.449 |
32755.238 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
2512.084 |
2433.100 |
2274.444 |
|
(c)
Trade receivables |
13295.292 |
24390.097 |
17358.586 |
|
(d)
Cash and cash equivalents |
930.071 |
3252.117 |
2802.016 |
|
(e)
Short-term loans and advances |
1233.734 |
467.934 |
345.180 |
|
(f)
Other current assets |
36.497 |
103.813 |
42.819 |
|
Total
Current Assets |
18007.678 |
30647.061 |
22823.045 |
|
|
|
|
|
|
TOTAL |
49251.796 |
62567.510 |
55578.283 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
34484.313 |
54846.167 |
49907.320 |
|
|
|
Other Income |
322.896 |
322.534 |
294.321 |
|
|
|
TOTAL (A) |
34807.209 |
55168.701 |
50201.641 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
7137.986 |
7474.593 |
6383.272 |
|
|
|
Power and Fuel |
4795.339 |
4500.382 |
3972.685 |
|
|
|
Purchases of Stock-in-Trade |
14438.262 |
30851.482 |
29762.368 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
133.985 |
(85.717) |
(1563.705) |
|
|
|
Employees benefits expense |
1368.862 |
1315.500 |
1347.517 |
|
|
|
Other expenses |
4094.855 |
5616.805 |
5264.688 |
|
|
|
Exceptional Items |
2056.140 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
34025.429 |
49673.045 |
45166.825 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
781.780 |
5495.656 |
5034.816 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2817.445 |
2642.290 |
1557.902 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(2035.665) |
2853.366 |
3476.914 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1261.470 |
1231.089 |
1170.134 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(3297.135) |
1622.277 |
2306.780 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(906.040) |
811.690 |
947.225 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(2391.095) |
810.587 |
1359.555 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Services |
77.385 |
135.255 |
102.861 |
|
|
|
Dispatch Money |
2.005 |
7.667 |
7.650 |
|
|
|
Sale of Goods [Kenya Branch] |
0.000 |
0.000 |
3.134 |
|
|
TOTAL EARNINGS |
79.390 |
142.922 |
113.645 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Spares |
111.194 |
99.177 |
60.996 |
|
|
|
Traded Products |
3667.156 |
19912.887 |
21873.335 |
|
|
|
Capital Goods |
17.347 |
46.525 |
167.402 |
|
|
TOTAL IMPORTS |
3795.697 |
20058.589 |
22101.733 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(4.00) |
1.36 |
2.27 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(6.87) |
1.47 |
2.71 |
|
|
|
|
|
|
|
Operating Profit Margin (PBITD/Sales) |
(%) |
2.27 |
10.02 |
10.09 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.81) |
2.62 |
4.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.15) |
0.07 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.66 |
1.20 |
0.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.77 |
0.93 |
0.91 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particulars |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
598.065 |
598.065 |
598.065 |
|
Reserves & Surplus |
22389.090 |
23202.181 |
20865.945 |
|
Net
worth |
22987.155 |
23800.246 |
21464.010 |
|
|
|
|
|
|
Long-term borrowings |
5176.632 |
3460.098 |
1917.737 |
|
Short term borrowings |
15350.861 |
25121.925 |
12145.371 |
|
Total
borrowings |
20527.493 |
28582.023 |
14063.108 |
|
Debt/Equity ratio |
0.893 |
1.201 |
0.655 |
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 |
49907.320 |
54846.167 |
34484.313 |
|
|
|
9.896 |
(37.125) |
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 |
49907.320 |
54846.167 |
34484.313 |
|
Profit/ Loss |
1359.555 |
810.587 |
(2391.095) |
|
|
2.72% |
1.48% |
(6.93%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Sales tax Deferral |
388.382 |
452.522 |
|
|
|
|
|
Total |
388.382 |
452.522 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10532604 |
20/10/2014 |
28,510,000.00 |
BIOTECHNOLOGY INDUSTRY RESEARCH ASSISTANCE COUNCIL |
MTNL Building, 1st Floor,, 9 CGO Complex, Lodi Road, New Delhi, Delhi
- 110003, INDIA |
C34472514 |
|
2 |
10524118 |
13/09/2014 |
500,000,000.00 |
State Bank of India |
Ozone, 2nd floor, No. 6-3-669, Panjagutta Main Road, Hyderabad,
Telangana - 500082, INDIA |
C26002741 |
|
3 |
10518037 |
04/08/2014 |
1,004,100,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
Ground Floor, Asian Building, 17, R Kamani Marg, |
C15970387 |
|
4 |
10484887 |
21/02/2014 * |
1,000,000,000.00 |
IFCI LIMITED |
No.6-9-13, 8th floor, Taramandal Complex, Saifaba |
C04340204 |
|
5 |
10403397 |
15/02/2013 |
8,544,000.00 |
DEPARTMENT OF BIOTECHNOLOGY |
6-8TH FLOOOR,BLOCK NO.2, CGO COMPLEX,LODHI ROAD, |
B68278035 |
|
6 |
10260529 |
04/07/2011 * |
250,000,000.00 |
ICICI BANK LIMITED |
ICICI BANK TOWERS, FINANCIAL DISTRICT, PLOT NO-12, , 6TH FLOOR,
NANAKRAM GUDA, SERILINGAMPALLY,, HYD |
B16888141 |
|
7 |
10240545 |
04/02/2013 * |
1,000,000,000.00 |
ICICI Bank Limited |
Corporate Banking group Hyderabad, 6th Floor, Nor |
B69507093 |
|
8 |
10241841 |
09/09/2010 |
87,040,000.00 |
Department of Biotechnology |
6-8th Floor, Block No 2, CGO Complex, Lodhi Road, |
A95605895 |
|
9 |
10194046 |
21/02/2014 * |
500,000,000.00 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005,
INDIA |
C00044719 |
|
10 |
10127655 |
31/10/2008 |
500,000,000.00 |
Industrial Development Bank of India |
5-9-89/1 &2, P B No 370, Chapel Road, Hyderabad, |
A49906423 |
* Date of charge modification
CORPORATE INFORMATION
Kakinada Fertilizers
Limited (KFL) was incorporated as a wholly owned subsidiary to Nagarjuna
Fertilizers and Chemicals Limited (erstwhile NFCL) in 2009-10 to manufacture,
market fertilizers and allied agri inputs. Through a Composite Scheme of
Arrangement and Amalgamation (the Scheme), KFL acquired the residual business
of erstwhile NFCL and the business of Ikisan Limited effective from April 01,
2011. KFL changed its name to Nagarjuna Fertilizers and Chemicals Limited w.e.f
August 19, 2011 as per the Scheme. The financial statements presented herewith
for the year ended on March 31, 2014 relates to the combined operations of the
Company's Fertilizer, Micro Irrigation, Agri Informatic Services and Wind
Energy generation businesses. The Financial statements include operations of
branches at Kenya and Singapore.
SCHEME
The jurisdictional High Courts of Bombay and Andhra Pradesh had approved
the Composite Scheme of Arrangement and Amalgamation between the Company,
erstwhile Nagarjuna Fertilizers and Chemicals Limited and Nagarjuna Oil
Refinery Limited and Ikisan Limited and their respective shareholders and
creditors (‘the Scheme’) as per the provisions of Sections 391 – 394 and other
relevant provisions of the Companies Act, 1956 on June 17, 2011 and June 27,
2011 respectively. The Scheme was made effective on July 30, 2011 but operative
from Appointed Date, i.e. April 1, 2011.
Consequent to Scheme becoming effective, the financial statements for
the subsequent years have been drawn up incorporating the necessary adjustments
as envisaged in the Scheme.
The Bombay Stock Exchange vide letter dated December 14, 2011 approved
the application of the Company for listing of the equity shares and the
National Stock Exchange vide letter dated January 13, 2012 accorded in-principle
approval for listing of the equity shares. These approvals are subject to
relaxation by Securities and Exchange Board of India (SEBI) from requirements
under Rule 19(2)(b) of Securities Contracts (Regulation) Rules, 1957.
An application has been filed by SEBI in the High Court of Bombay at
Mumbai to recall / review and / or set aside the order dated June 17, 2011 and
Order dated July 22, 2011 of the High Court of Bombay at Mumbai. The Company is
contesting the application, the matter is subjudice and the High Court of
Bombay at Mumbai is hearing the matter.
The Company, in view of the prolonged delay by SEBI, has filed an
Application before Securities Appellate Tribunal (SAT) to direct SEBI to grant
relaxation / waiver of Rule 19(2)(b) of Securities Contract (Regulation) Rules,
1957.
Adjustments, if any, required to the financial statements will be made
on final resolution of this matter.
RESTRUCTURING
The Composite Scheme of Arrangement and Amalgamation between Kakinada
Fertilizers Limited, Ikisan Limited, Nagarjuna Fertilizers and Chemicals
Limited and Nagarjuna Oil Refinery Limited (Scheme) was approved by the Hon'ble
High Court of Bombay at Mumbai on June 17, 2011 and by the Hon'ble High Court
of Andhra Pradesh at
Hyderabad on June 27, 2011.
Consequent to the approval of the Jurisdictional High Courts the
Composite Scheme was made effective on July 30, 2011 i.e., 'Effective Date' but
operative from 'Appointed Date' i.e., April 1, 2011. With effect from July 30,
2011, the 'Oil Business Undertaking' of Erstwhile NFCL was demerged into NORL
and the residual NFCL along with Ikisan were merged into the company.
The company had filed applications for listing of equity shares with
Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 7,
2011. BSE approved application of the company for listing of 598065003 equity
shares on December 14, 2011 and NSE provided in-principle approval for listing
of 598065003 equity shares on January 13, 2012 subject to obtaining relaxation
from SEBI under Rule 19(2)(b) of Securities Contracts (Regulation) Rules, 1957.
The company had been persistently following up with Securities and
Exchange Board of India (SEBI) for relaxation under Rule 19(2) (b) of the
Securities Contracts (Regulation) Rules, 1957 and has furnished all necessary
documents/ clarifications from time to time after having complied fully with
the provisions of the Companies Act, 1956, Listing Agreement and other
statutory enactments in force.
The company has not received any intimation from SEBI in relation to the
granting of the relaxation.
An application has been filed by SEBI in the High Court of Bombay at
Mumbai challenging the approval granted to the Composite Scheme. The company is
contesting the application and the matter is sub-judice.
The company, in view of the prolonged delay by SEBI, has filed an
application before Securities Appellate Tribunal (SAT) to direct SEBI to grant
relaxation/waiver of Rule 19(2)(b) of Securities Contract (Regulation) Rules,
1957.
The company is taking all necessary steps to protect itself and the
interest of all its stakeholders and shall keep the stakeholders informed of
progress on the matter from time to time.
MANAGEMENT
DISCUSSION ANALYSIS
THE INDIAN
ECONOMIC SCENARIO
The year 2013-14 has been a challenging year for the Indian economy in
general and the Indian Industry in particular which has been plagued by high
inflation, high interest rates, sluggish economy and depressed demand resulting
in a lower GDP.
The new government at the centre has raised high expectations with a
decisive mandate given by the electorate. The government has to fulfill its
commitments in various areas which includes reigning in inflation, revive the
sluggish economy and fiscal consolidation.
The initial deficient rainfall in vast parts of the country coupled with
increasing crude oil prices and inheritance of a sluggish economy has made the
task difficult for the new government.
The Budget for the year 2014-15 announced by the finance minister has
been received with cautious optimism. The government hopes to put the economy
on the growth track with fiscal deficit pegged at 4.1% and estimated GDP growth
rate at 5.4% to 5.9% for the year 2014-15 with higher outlays on sectors like
infrastructure, agriculture, rail, ports, gas pipelines and waterways, FDI hike
to 49% in defence and insurance, tax sops to the salaried class.
Financing has also been made easier with relaxation of the CRR/SLR
norms. Dilution of government stake in the PSU banks while retaining majority
control and granting at the same time autonomy to the banks is also a welcome
measures. It is also expected that the long pending act on uniform Goods and
Services Tax may be approved soon by the end of this year.
The need of the hour is to attract long term finance for infrastructure
projects from a wide range of domestic as well as foreign investors rather than
depend on the domestic banking system and the new government has initiated
action in this regard.
It is expected that the government would rationalize the food and fuel
subsidy very soon.
AGRICULTURE SECTOR
Late revival of the monsoons in most areas of the country has lessened
the percentage of deficient rainfall and it is to be hoped that the new government
faces the challenge of curtailing the impact of deficient rainfall on
agricultural productivity and consumer demands on essential farm products and
at the same time control inflation on essential food items. The onset of the
monsoon has raised hopes of high food production. The revision of minimum
support prices for various kharif crops is a welcome measures.
The government aims to focus on achieving a 4% growth per year in
agricultures. It has set itself a farm credit target of Rs. 8 trillion for the
year 2014-15 and proposes a long term rural credit fund with initial corpus of
Rs.50 billion.
It is expected that the government would in the coming months give more
fillip to this vital sector
FERTILIZER SECTOR
The high subsidy burden for the government along with the rising cost of
production of domestic urea will make the situation difficult for the sector if
the gas price revision takes place.
The enhanced allocation of urea subsidy in the Union Budget for 2014-15
would reduce the gap between budgeted and actual subsidy witnessed during past
few years. Urea comprises 59% of the total fertilizer consumption in India
based on volumes. The increase in subsidy for urea would aid all the
stakeholders of urea but the enhanced provision would not be sufficient to wipe
out subsidy arrears. The government is expected to provide incentives for
balanced use of fertilizers to reduce urea consumption and encourage soil
preservation. It is expected that a new urea policy may be on the anvil. The
fertilizer subsidy bill has been forecast at Rs.729.7 billion for the year
2014-15.
The demand for fertilizers may get a new lease of life in view of the
new credit initiatives announced in the recent budget and this will lead to
easier availability of credit. Famers may be encouraged to use complex
fertilizers in addition to urea.
The shortfall in the availability of Natural Gas has resulted in
production being curtailed leading to increased cost of manufacture due to
higher energy consumption. This shortfall has led to more consumers looking at
the same source causing shortfall in supply. There is a need to debate and
relook at the policy on Natural Gas and prioritise the Fertilizer Sector.
OUTLOOK/ FUTURE
PLANS
The company is exploring various growth opportunities to enhance its
revenue streams and in this regard is looking at various projects both in India
and abroad.
In view of the uncertainty of government policy and increase in gas
prices and its availability, it is necessary for the company to not depend only
on one product alone and in this regard is exploring various opportunities to
broad base its products so as to augment its income. The company in addition to
urea and micro irrigation systems is already making its presence felt in area
of speciality fertilizers and customized fertilizers through its wide dealer
network throughout India.
FINANCIAL
PERFORMANCE
Owing to shortage of Natural Gas, volatility in the forex market, delays
in realization of subsidy due from the Government of India and its consequent
effect on the working capital, have resulted in significant losses for the
company for the financial year ended March 31, 2014. The company recorded a
post-tax loss of Rs.2391.100 Millions.
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2014
(RS.
IN MILLIONS)
|
PARTICULARS |
Quarter Ended 30.09.2014 |
|
|
(Unaudited) |
|
Income from Operations |
|
|
Sales/Income from Operations |
4590.563 |
|
Less: Excise Duty |
7.112 |
|
Net Sales/ Income from
operations |
4583.451 |
|
Other Operating Income |
10.155 |
|
Total Income from
operations (net) |
4593.606 |
|
|
|
|
Expenses |
|
|
(a) Cost of Material Consumed |
665.677 |
|
(b) Power and Fuel |
405.608 |
|
(c) Purchase of Traded Products |
2430.478 |
|
(d) (Increase) / Decrease in Stock |
265.678 |
|
(e) Employee benefit expenses |
341.112 |
|
(f) Depreciation and amortization expenses |
238.155 |
|
(g) Other Expenses |
505.945 |
|
Total Expenses |
4852.653 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
(259.047) |
|
Other Income |
108.309 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
(150.738) |
|
Finance costs |
528.166 |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Exceptional item |
(678.904) |
|
Exceptional
item |
351.052 |
|
Profit/ Loss from Ordinary Activities
before tax |
(1029.956) |
|
Tax Expenses |
(139.900) |
|
Net Profit/ Loss from Ordinary Activities
after tax |
(1028.557) |
|
Extraordinary
Items |
-- |
|
Net Profit for the period |
(1028.557) |
|
Paid- up
Equity Share Capital (Face value
of the share – Re. 1/-) |
598.065 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
|
Earnings Per Share (for the quarter ended - not annualised) - Rs. - Basic and Diluted |
(1.72) |
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
1. Public
shareholding |
|
|
Number of Shares |
290831743 |
|
Percentage of Shareholding |
48.63 |
|
2. Promoters
and promoter group shareholding |
|
|
a)
Pledged/Encumbered |
|
|
- Number of Shares |
116360077 |
|
- Percentage of Shares (as a % of the Total Shareholding of
promoter and promoter group) |
37.87 |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
19.46 |
|
|
|
|
Non - encumbered |
|
|
- Number of
Shares |
190873183 |
|
- Percentage
of Shares (as a % of the
total shareholding of promoter and promoter group) |
62.13 |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
31.91 |
|
|
PARTICULARS |
Quarter
Ended 30.09.2014 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
9 |
|
|
Disposed of during the quarter |
9 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES:
1)
The above results were reviewed by the Audit Committee
and approved by the Board of Directors at their respective meetings held on
November 10, 2014.
2)
The Statutory Auditors have carried out Limited
Review of above financial results.
3)
Income from urea operations is accounted on the
basis of prices notified under Stage III New Pricing Policy by the Government
of India (GOI) which has been further extended from April 01, 2010 onwards
until further orders. Input escalation / de-escalation, freight subsidy and
Import Parity Price benefit are accounted in accordance with parameters
notified by GOI. Adjustments, if any, required will be considered on
notification of final prices.
4)
Consequent to the blast in gas pipeline of GAIL on
June 27, 2014, the plants were shut down due to non supply of Gas during the quarter
the company has incurred losses due to lower production and sales. The plants
commenced production in phases manner from 16th August 2014.
5)
Exceptional items comprise: (a) Rs.180.836 millions
towards replacement of major spare and (b) Rs.170.216 millions towards
decapitalization of equipment’s which are replaced with new equipment.
6)
The financial results comprise of the combined
operations of the Company relating to Fertilizer, Micro Irrigation, Agri Services
and Wind Energy generation businesses. The financial results of Micro
Irrigation segment, Wind Energy segment and Agri Services segment being less
than the threshold limit prescribed for separate disclosure in Accounting
Standard 17, have not been shown separately.
7)
Tax Expense includes income tax and deferred tax.
8)
The Bombay Stock Exchange vide letter dated
December 14, 2011 approved the application of the Company for listing of the
equity shares and the National Stock Exchange vide letter dated January 13,
2012 accorded in-principle approval for listing of the equity shares. These
approvals are subject to relaxation by Securities and Exchange Board of India
(SEBI) from requirements under Rule 19(2)(b) of Securities Contracts
(Regulation) Rules, 1957. The Company has furnished all necessary documents/
clarifications from time to time after having complied fully with the
provisions of the Companies Act, 1956, Listing Agreement and other statutory
enactments in force.
An application has been filed by SEBI in the
High Court of Bombay at Mumbai challenging the approval granted to the
Composite Scheme. The Company is contesting the application, the matter is
sub-judice and the High Court of Bombay at Mumbai is hearing the matter.
The Company, in view of the prolonged delay
by SEBI, has filed an Application before Securities Appellate Tribunal (SAT) to
direct SEBI to grant relaxation/waiver of Rule 19(2)(b) of Securities Contract
(Regulation) Rules, 1957.
Adjustments, if any, required to the
financial statements will be made on final resolution of this matter.
9)
The figures for the corresponding previous periods
have been restated / regrouped, wherever necessary, to make them comparable.
|
SOURCES OF FUNDS |
As on 30.09.2014 (Unaudited) |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)Shareholders'
Funds |
|
|
(a)
Share Capital |
598.065 |
|
(b) Reserves & Surplus |
18522.475 |
|
|
19120.540 |
|
(2)
Minority Interest |
0.000 |
|
|
|
|
(3) Non-Current
Liabilities |
|
|
(a) long-term borrowings |
2790.829 |
|
(b) Deferred tax liabilities (Net) |
851.589 |
|
(c) Other long term
liabilities |
546.952 |
|
(d) long-term
provisions |
94.100 |
|
|
4283.470 |
|
(4) Current Liabilities |
|
|
(a) Short term
borrowings |
7777.497 |
|
(b) Trade payables |
6289.882 |
|
(c) Other current
liabilities |
1890.944 |
|
(d) Short-term
provisions |
364.326 |
|
|
16322.649 |
|
|
|
|
TOTAL |
39726.659 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
|
|
(i) Tangible assets |
29047.500 |
|
(ii) Intangible Assets |
319.343 |
|
(iii) Capital work-in-progress |
57.041 |
|
(b) Non-current Investments |
529.367 |
|
(c) Long-term Loan and Advances |
233.277 |
|
(d) Other
Non-current assets |
3.154 |
|
|
30189.682 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
0.000 |
|
(b) Inventories |
1300.771 |
|
(c) Trade receivables |
6520.590 |
|
(d) Cash and cash
equivalents |
599.632 |
|
(e) Short-term loans
and advances |
1081.812 |
|
(f) Other current
assets |
34.172 |
|
|
9536.977 |
|
|
|
|
TOTAL |
39726.659 |
CONTINGENT
LIABILITIES [AS ON 31.03.2014]:
1)
Counter guarantees given to Bankers in respect of Bank
guarantees Rs. 181.463 Millions (Previous year Rs. 958.933 Lakhs).
2)
Income Tax matters under disputes Rs. Nil (Previous
year Rs. 118.391 Millions).
3)
Compensation in respect of 33.35 acres (Previous
year 33.35 acres) of land in possession - amount not ascertained.
4)
Claims against the Company not acknowledged as
debts Rs. 749.853 Millions including Rs. 540.006 Millions disputed Excise Duty
on subsidy which is not tenable as per the legal opinion. (Previous year Rs.
102.585 Millions).
FIXED ASSETS:
Tangible Assets
·
Land
·
Buildings
·
Plant and Equipments
·
Furniture, Fixtures and Office Equipment
·
Vehicles
·
Roads, Drains and Culverts
·
Railway Siding
Intangible Assets
·
Trade Marks and Services
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. 63.06 |
|
|
1 |
Rs. 98.73 |
|
Euro |
1 |
Rs. 77.45 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
29 |
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.