MIRA
INFORM REPORT
|
Report Date : |
03.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
TUBE INVESTMENT OF INDIA LIMITED TIDC INDIA LIMITED UNIT OF TUBE INVESTMENT OF INDIA LIMITED |
|
|
|
|
Registered
Office : |
"Dare House", 234, |
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|
|
Country : |
India |
|
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|
Financials (as
on) : |
31.03.2013 |
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|
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Date of
Incorporation : |
09.09.1949 |
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Com. Reg. No.: |
18-002905 |
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Capital
Investment / Paid-up Capital : |
Rs. 373.300 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L35921TN1949PTC002905 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHET00142C |
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|
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PAN No.: [Permanent Account No.] |
AAACT1249H |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing of
Cycle Components such as tubes, chains and metal strips. |
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|
No. of Employees
: |
3443 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 47000000 |
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|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of the Rs. 225 billion Chennai based, “Murugappa
Group”. Subject is a well-established and reputed company having fine track
record. There appears dip in the profit of the company during 2013. However,
general financial position of the company is good. Trade relations are fair. Business is active. Payments are regular and
as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that accounts
for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is
the main reason for this overall IT cut. A Reserve Bank of India committee has
recommended setting up a special category of lenders who would cater to small
businesses and households, to expand the number of customers with access to
banking services. These banks would focus onproviding payment services and
deposit products. Indian banks want the free use of automated teller
machines to be capped at five transactions in a month including that of the
bank in which the account is active. This follows state government order to
banks to install security guards at ATM booths after a woman banker was
assaulted in Bangalore. The government is likely to present a vote on Account
in mid-February. The annual Economic Survey will be tabled later in Parliament
along with the full Budget. A full Budget for 2014/15 is likely to be present
in July by the new government formed after the General Election. The government
will soon launch an internet spy system, called Netra, to detect malafide
messages. Security agency will deploy the system to capture dubious voice
traffic on applications such as Skype and Google Talk, as well as tweeters.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: “AA” |
|
Rating Explanation |
High degree of safety and carry very low
credit risk. |
|
Date |
29.01.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A1+” |
|
Rating Explanation |
Have very strong degree of safety and carry
lowest credit risk. |
|
Date |
29.01.2014 |
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
31-03-2012.
LOCATIONS
|
Registered Office : |
"Dare House", 234, N S C Bose Road, Chennai -
600 001, Tamilnadu, India |
|
Tel. No.: |
91-44-42177770 |
|
Fax No.: |
91-44-42110404 |
|
E-Mail : |
customercare@ticyclesindia.com marketingstrips@tii.murugappa.com powertransmission@tidc.murugappa.com |
|
Website : |
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|
Factory : |
Cycles Division: TI Cycles of India Post Bag No. 5, Ambattur, Chennai 600 053, India Tel: 91-44-4209 3434 Fax: 91-44-4209 3345 TI Cycles of India Plot No. E - 8, MIDC, Malegaon, Sinnar, Nashik District 422 103,
Maharashtra, India Tel : 91-2551-230472 Fax: 91-2551-230183 TI Cycles of India A-32, Phase II Extension, Hoisery Complex, Opposite NEPZ Dadri Road,
Gautam Budh Nagar, Noida 201 305, India Tel : 91-120-2462201/203 Fax : 91-120-2462397 Engineering
Division: Tube Products of India Avadi, Chennai 600 054, India Tel : 91-44 -4229 1999 Fax : 91-44- 4229 1990 Tube Products of India Shirwal Post, Khandala Taluk, Satara District 412 801, Maharashtra,
India Tel : 91-2169 -244080 Fax : 91-2169 -244087 Tube Produds of India A-16 & 17, Industrial Focal Point, Phase VI, SAS Nagar, Mohali 160
051, India Tel: 91-172 -4510209 Metal Formed
Products Division: TIDC India Ambattur, Chennai 600 053 Tel : 91-44 - 4223 5555 Fax: 91-44- 4223 5406 TIDC India Kazipally Village, Plot No.1, Jinnaram Mandal, Medak District 502 319 Tel : 91-8458 - 277240 Fax : 91-8458 - 277241 TI Metal Forming Chennai - Tiruvallur High Road, Tiruninravur RS PO 602 024 Tel: 91-44 -26390194 / 26390437/ 2639 0504 Fax: 91-44 - 2639 0634 TI Metal Forming 80/81, SIDCO Industrial Estate, Kakkalur, Thiruvallur 602 003 Ph. 91-44 -27667104 TI Metal Forming Plant, Plot Nos. 245, Sector 3, Growth Centre, Bawal, Riwari District
123501* Tel : 91-1284 - 260707, 260708 Fax: 91-1284 - 260426 TI Metal Forming Plot No.501 - B & C, Halol Industrial Area / Estate, Block No. 32
& 34, Village Dunia Taluka Halol, District Panchmahals, Baroda 389 350 Tel : 91-2676 - 224647 Fax: 91-2676- 224035 TIDC India Ganganouli, Laskar – 247 663, Uttarakhand Tel. No.:- 91-1332-271295 TIDC India Post Bag No. 11, Amabattur, Chennai – 600 053* Tel. No.:- 91-40-4223 5555 Fax No.:- 91-44-4223 5406 TI Metal Forming, Nemilicherry, Chennai, India TI Metal Forming, Pune, Maharashtra, India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. M M Murugappan |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. L Ramkumar |
|
Designation : |
Managing Director |
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|
|
|
Name : |
Mr. C K Sharma |
|
Designation : |
Non-Executive
Director |
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|
|
|
Name : |
Mr. Pradeep
Mallick |
|
Designation : |
Non-Executive
Director |
|
|
|
|
Name : |
Mr. Pradeep V
Bhide |
|
Designation : |
Non-Executive
Director |
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|
Name : |
Mr. S Sandilya |
|
Designation : |
Non-Executive
Director |
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|
Name : |
Mr. N Srinivasan |
|
Designation : |
Non-Executive Director |
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|
|
|
Name : |
Mr. S B Mathur |
|
Designation : |
Non-Executive
Director |
KEY EXECUTIVES
|
Name : |
Mr. S
Suresh |
|
Designation : |
Company
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
16579715 |
9.12 |
|
|
72165145 |
39.68 |
|
|
1398630 |
0.77 |
|
|
1398630 |
0.77 |
|
|
90143490 |
49.57 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
90143490 |
49.57 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
10635428 |
5.85 |
|
|
902804 |
0.50 |
|
|
6048306 |
3.33 |
|
|
30368615 |
16.70 |
|
|
47955153 |
26.37 |
|
|
|
|
|
|
11586667 |
6.37 |
|
|
|
|
|
|
19738667 |
10.85 |
|
|
11585805 |
6.37 |
|
|
851034 |
0.47 |
|
|
663842 |
0.37 |
|
|
163546 |
0.09 |
|
|
23646 |
0.01 |
|
|
43762173 |
24.06 |
|
Total Public
shareholding (B) |
91717326 |
50.43 |
|
Total (A)+(B) |
181860816 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
4930630 |
0.00 |
|
|
4930630 |
0.00 |
|
Total (A)+(B)+(C) |
186791446 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Cycle Components such as tubes, chains and metal strips. |
GENERAL INFORMATION
|
No. of Employees : |
3443 (Approximately) |
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Bankers : |
· Bank of America · Standard Chartered Bank · State Bank of India · The Hong Kong and Shanghai Banking Corporate on Limited |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
Deloitte Haskins
and Sells Chartered Accountants |
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|
|
|
Subsidiary
Companies : |
· Shanthi Gears Limited (Associate from 3 September 2012 to 18 November 2012 and Subsidiary with effect from 19 November 2012) · Cholamandalam MS General Insurance Company Limited · Cholamandalam Investment and Finance Company Limited and its Subsidiaries namely · Cholamandalam Distribution Services Limited · Cholamandalam Factoring Limited and · Cholamandalam Securities Limited · TI Financial Holdings Limited · TICI Motors (Wuxi) Company Limited · Financiere C10 SAS and its Subsidiaries namely · Sedis SAS · Societe De Commercialisation De Composants Industriels - SARL (S2CI) and · Sedis Company Limited |
|
|
|
|
Associate -
Investing Company : |
· Murugappa Holdings Limited |
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|
|
|
Joint Venture
Company: |
· Cholamandalam MS Risk Services Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
215000000 |
Equity Shares |
Rs.2/- each |
Rs. 430.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
186679308 |
Equity Shares |
Rs.2/- each |
Rs. 373.300
Millions |
|
|
|
|
|
The Reconciliation on
of Share Capital is given below:
|
Particulars |
As on 31.03.2013 |
|
|
No. of Shares |
Rs. In Millions |
|
|
At the beginning of the year |
186315317 |
372.600 |
|
Shares allotted on exercise of Employee Stock Options (Refer Note e below) |
363991 |
0.700 |
|
At the end of the
year |
186679308 |
373.300 |
Terms/Rights attached
to class of shares:
The Company has only one class of shares referred to as Equity Shares having a par value of Rs.2. The holders of Equity Shares are entitled to one vote per share. Dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. Repayment of capital will be in proportion to the number of Equity Shares held.
Details of
Shareholder(s) holding more than 5% of Equity Shares in the Company as on 31 March
2013
|
Particulars |
As on 31.03.2013 |
|
|
No. of Shares |
% against total number of shares |
|
|
Murugappa Holdings Limited (Associate - Investing Company) |
64054680 |
34.31% |
Status on Global
Depository Receipts:
The aggregate number of Global Depository Receipts (GDRs) outstanding as at 31 March 2013 is 52,23,460 (Previous Year 64,23,460) each representing one Equity Share of `2 face value. GDR % against total number of shares is 2.80% (Previous Year 3.45%). The GDRs carry the same terms/rights a ached to Equity Shares of the
Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
373.300 |
372.600 |
371.300 |
|
(b) Reserves & Surplus |
11440.100 |
10777.000 |
9542.700 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.300 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
11813.400 |
11149.900 |
9914.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
6303.600 |
4187.100 |
3626.800 |
|
(b) Deferred tax liabilities (Net) |
522.900 |
480.800 |
517.600 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
6826.500 |
4667.900 |
4144.400 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
3031.700 |
2962.300 |
2583.800 |
|
(b)
Trade payables |
4854.100 |
5504.000 |
5157.700 |
|
(c)
Other current liabilities |
4414.200 |
1654.100 |
1473.400 |
|
(d) Short-term
provisions |
439.300 |
543.300 |
494.800 |
|
Total Current
Liabilities (4) |
12739.300 |
10663.700 |
9709.700 |
|
|
|
|
|
|
TOTAL |
31379.200 |
26481.500 |
23768.100 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
6316.100 |
6065.100 |
5608.400 |
|
(ii) Intangible
Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
1597.300 |
384.200 |
273.900 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
14440.100 |
9301.500 |
8925.000 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
786.900 |
948.000 |
557.900 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
23140.400 |
16698.800 |
15365.200 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.200 |
0.000 |
180.500 |
|
(b)
Inventories |
3567.700 |
4100.000 |
3876.900 |
|
(c)
Trade receivables |
3944.000 |
4358.500 |
3733.700 |
|
(d) Cash
and cash equivalents |
332.700 |
859.200 |
136.400 |
|
(e)
Short-term loans and advances |
394.200 |
465.000 |
475.400 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
8238.800 |
9782.700 |
8402.900 |
|
|
|
|
|
|
TOTAL |
31379.200 |
26481.500 |
23768.100 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
34074.300 |
34897.700 |
29811.000 |
|
|
|
Other Income |
402.500 |
309.700 |
107.900 |
|
|
|
TOTAL (A) |
34476.800 |
35207.400 |
29918.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
19452.400 |
20134.100 |
17049.000 |
|
|
|
Purchase of Stock-in-Trade - Cycles/Components and Metal Formed
Products |
1340.700 |
1858.200 |
1431.200 |
|
|
|
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
208.800 |
(374.700) |
(475.200) |
|
|
|
Employee Benefits Expense |
2773.500 |
2592.300 |
2435.400 |
|
|
|
Other Expenses |
7351.900 |
7020.100 |
5921.300 |
|
|
|
Exceptional Item - Provision for diminution on in value of investment in
Subsidiary |
38.100 |
0.000 |
(206.000) |
|
|
|
TOTAL (B) |
31165.400 |
31230.000 |
26155.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3311.400 |
3977.400 |
3763.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1041.600 |
765.600 |
659.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2269.800 |
3211.800 |
3104.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
797.700 |
760.800 |
691.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1472.100 |
2451.000 |
2413.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
432.500 |
650.100 |
716.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1039.600 |
1800.900 |
1696.600 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2797.000 |
3927.000 |
3346.100 |
|
|
|
|
|
|
|
|
|
|
Final dividend including tax on dividend |
0.000 |
0.200 |
0.200 |
|
|
|
|
|
|
|
|
|
|
Earlier year's provision for dividend tax no longer required |
11.700 |
17.600 |
0.000 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1000.000 |
2000.000 |
250.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
842.700 |
316.600 |
233.400 |
|
|
|
Interim Dividend @ Rs.2 (Previous year Rs. 1.50) per Equity Share of Rs.2 each |
279.900 |
272.400 |
278.400 |
|
|
|
Final Dividend Proposed @Rs.1 (Previous year Rs.1.50) per Equity Share of Rs.2 each |
93.300 |
186.300 |
278.500 |
|
|
|
Tax on Dividend |
32.000 |
73.000 |
81.800 |
|
|
BALANCE CARRIED
TO THE B/S |
1600.400 |
2797.000 |
3927.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
1890.200 |
1887.600 |
1617.200 |
|
|
|
Service Income |
46.200 |
33.800 |
14.900 |
|
|
TOTAL EARNINGS |
1936.400 |
1921.400 |
1632.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2233.600 |
2303.000 |
1424.200 |
|
|
|
Stores & Spares |
110.600 |
85.000 |
87.200 |
|
|
|
Finished Goods |
1291.200 |
1800.300 |
1231.000 |
|
|
|
Capital Goods |
893.400 |
279.200 |
149.800 |
|
|
TOTAL IMPORTS |
4528.800 |
4467.500 |
2892.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.58 |
9.69 |
9.16 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.01 |
5.11 |
5.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.32 |
7.02 |
8.09 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.60 |
14.59 |
16.56 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
0.21 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.80 |
0.64 |
0.62 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.65 |
0.91 |
0.87 |
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 |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Deferred Payment Liability - Sales Tax Deferral |
123.800 |
162.400 |
|
|
|
|
|
Short Term
Borrowings |
|
|
|
Foreign Currency Loans |
566.100 |
47.900 |
|
Working Capital Demand Loans |
500.000 |
1000.000 |
|
Cash Credit and other borrowings |
4.200 |
312.700 |
|
|
|
|
|
Total |
1194.100 |
1523.000 |
REVIEW OF PERFORMANCE
The Company achieved a turnover of Rs.3,6420.000 Millions during 2012-13
(previous year Rs.3,6650.000 Millions). This performance has to be viewed in
the context of the current economic environment. The Company is largely
dependent on the auto industry, with the exception of the Bicycle segment. In
view of the economic slowdown, the auto industry as well as the bicycles
industry did not fare well during the year, which impacted the Company’s
performance. Earnings before Finance Costs, Tax, Depreciation and Amortization
Expenses were at Rs.3350.000 Millions during the year as against Rs.3980.000
Millions in 2011-12, a decline of 16%. Finance costs was high at Rs.1040.000
Millions as against Rs.770.000 Millions in 2011-12 due to the increased
borrowings resorted to meet the Company’s expansion programmes. Profit Before
Tax was Rs.1470.000 Millions for the year 2012-13 as against Rs.2450.000
Millions in the previous year.
The Bicycle division recorded a turnover of Rs.1,2550.000 millions in 2012-13 as against Rs.1,2850.000 millions in the previous year. This segment witnessed steep increase in the customs and excise levies. Lower disposable income in the rural areas affected the demand for Standard bicycles. Higher input costs, together with the increase in the statutory levies, resulted in the higher price of bicycles for the end consumer, affecting the demand in Specials segment as well. As part of its growth strategy, the Company continues to invest in the expansion of retail outlets to improve its reach and the buying experience. The business has established a manufacturing and assembly line for high-end bicycles, to cater to the export market. The division continues to focus on promoting cycling. The Company has reduced its dependence on imports in select product lines and has plans to introduce many new models in the coming years to meet customer aspirations.
As regards electric scooters, lack of infrastructure support
and the withdrawal of subsidies by the Government have affected the consumer’s
preference for this product. In this scenario, prospects for the growth of this
product are not expected to improve in the near term.
The division has reported a profit before interest and tax of Rs.490.000 millions. in 2012-13 as against Rs.760.000 millions in the previous year, registering a decline of 36%.
The Engineering division recorded a turnover of Rs.1,4670.000 millions in 2012-13 as against Rs.1,4490.000 millions in the previous year. With the bulk of its revenue coming from the auto sector, the performance of this business was impacted during the year due to decline in demand for motor cycles and commercial vehicles. Margin was affected due to the increase in power and fuel cost and the inability to pass on the same in entirety. The tubular component business continued to enjoy good patronage from its user segments and grew by 6%. The Company commissioned a stainless steel tube manufacturing facility in the previous year and is working with user industries for product acceptance. Export turnover of the division was at previous year’s levels despite the market slowdown witnessed in Europe and the United States of America. Exerts are underway to enhance the product portfolio of the division through the manufacture of large diameter Cold Drawn Welded tubes (CDW), which finds application in non-auto industries. Towards this, a green field facility is under establishment and it is expected to start commercial production in the first quarter of 2014-15.
The division has reported a net operating profit before interest and tax of Rs.1100.000 millions as against Rs.1310.000 millions in the previous year. Improving internal efficiencies and aggressive cost management helped to limit the impact of the drop in volume and steep increase in costs.
The Metal Formed Products segment of the Company registered a turnover of Rs.7950.000 millions in 2012-13, as against Rs.8600.000 millions in the previous year. Stagnation in demand from the motorcycle segment affected the sale of drive chains to OEMs. To counter this, the Company focused on the replacement market, which facilitated good growth in volumes for the division. Consistent with the decline in the key industry user segments like cement, material handling and infrastructure, off -take of industrial chains was not encouraging. Uncertain conditions and low economic activity in the European markets further impacted the export of industrial chains. The Company continues to invest in equipment to manufacture fine blanked products as there is a good opportunity for growth in the domestic and export markets. Sale of fine blanked products grew by 33% in 2012-13 over the previous year. Passenger cars designed with roll-formed doorframes did not grow during the year, resulting in a drop in the volume of doorframes sold. The existence of a large underutilized capacity in cold rolled sections for railway wagons affected the top line and margin.
Net operating profit before interest and tax for this segment was at Rs. 800.000 millions, representing a decline of 29%.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
The year 2012-13 witnessed uncertainty in the domestic and global economies. Economic conditions in the US
showed signs of improvement early on, but did not sustain in the later part of the year; Europe continued to be dogged by one crisis after the other in one or more economies in the European Union; questions on the continued existence of the Euro surfaced and had markets on the edge for a while. With the passage of the crisis and green shoots in some large economies, the prospects of improvement look better.
India, no longer being insulated from global developments, was impacted by these factors. In addition, the high rate of inflation, depreciation of the Rupee, increasing fuel prices, high interest rates, weak monsoons, infrastructure bottlenecks and the lack of any concrete policy moves to address these issues led to a correction in the growth rate for the country. It is estimated that the economy grew at the rate of 5% in 2012-13. Differing sectors of the economy performed differently, with agriculture growing at 1.8%, manufacturing by 1.9% and services by 6.6%. The growth rate in the first half of the year was better at 5.4%, but the same could not be sustained in the second half (4.6%).
The Company achieved a turnover of Rs.3,6420.000 millions, slightly less than the previous year, but its Profit before Tax and Exceptional Item dropped to Rs.1510.000 millions, a decline of 38% over the previous year. The performance has to be seen in the backdrop of the economic environment and the key user segment of the Company’s products – the automotive industry, which saw its toughest year in recent years.
BUSINESS REVIEW
CYCLES/COMPONENTS/ELECTRIC
SCOOTERS
TI’S PRESENCE
The Cycles/Components/Electric Scooters segment of the Company comprises bicycles of the Standard and Special variety including the alloy bikes and specialty performance bikes, bicycle components sold as spares, fitness equipment such as motorized tread mills, elliptical, recumbent bikes etc., and electric scooters.
INDUSTRY SCENARIO
The organized bicycle industry in India is estimated to have dropped by 10% during the year. The bicycles fall under two distinct categories – Standard and Special. The bicycle is today viewed as a product for fun, fitness and leisure activities instead of just being transportation medium. This has resulted in the product attaining a new and upgraded image. Consequently, the Special segment has registered higher growth rates over the last few years, while the Standard segment has been declining. It is estimated that the market for Mountain Terrain Bikes, the Sport Light Roadsters and Kids, which constitute the Special segment also declined, but at half the rate of the overall industry decline.
Higher affluence levels, greater exposure to international usage patterns and concern for fitness have opened up new avenues for high-end bicycles and this segment continues to grow steadily, year after year.
The Indian bicycle needs are met by three large players including the Company. Between the three players, close to 85% of the requirements are met and smaller regional players and imports constitute the balance. The Company enjoys a share of close to one-third of the total market, with a much higher share of the Special and premium segment.
The fitness equipment business can be broadly classified under two segments; home and commercial. The fitness business of the Company is restricted to the home segment. With a high compounded annual growth rate of 18%, the fitness equipment industry continues to be affricative. There are four national players apart from a slew of importers and regional players.
The electric scooters industry in India is still in its infancy. The customer expectations of speed and power are not fully met by the current products in the industry, while efforts are being made by all to upgrade performance. The lack of infrastructure support like special lanes, charging stations etc., as available in China, as well as withdrawal of subsidies have had a dampening effect on the prospects for the industry. The industry has seen the exit of all players in the unorganized sector and the lack of enthusiasm is now resulting in organized players reducing their presence.
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2013
(Rs. In Millions)
|
|
Particulars |
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net sales/Income from operations |
8613.900 |
8235.400 |
16849.300 |
|
|
(b) Other operating income |
26.800 |
26.000 |
52.800 |
|
|
Total Income from
operations (net) |
8640.700 |
8261.400 |
16902.100 |
|
2 |
Expenses |
|
|
|
|
|
(a)Cost of raw materials consumed |
5070.100 |
4725.700 |
9795.800 |
|
|
(b)Purchases of stock-in-trade |
175.200 |
100.300 |
275.500 |
|
|
(c)Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(43.000) |
184.600 |
141.600 |
|
|
(d) Employee benefits expense |
775.200 |
743.900 |
1519.100 |
|
|
(e) Depreciation and amortisation expense |
203.000 |
192.100 |
395.100 |
|
|
(f) Other expenses |
1858.300 |
1786.500 |
3644.800 |
|
|
Total expenses |
8038.800 |
7733.100 |
15771.900 |
|
3 |
Profit / (Loss) from
operations before other income, finance costs and exceptional items (1-2) |
601.900 |
528.300 |
1130.200 |
|
4 |
Other income |
120.600 |
11.400 |
132.000 |
|
5 |
Profit / (Loss)
from ordinary activities, before finance costs and exceptional items (3+4) |
722.500 |
539.700 |
1262.200 |
|
6 |
Finance costs |
310.200 |
304.100 |
614.300 |
|
7 |
Profit / (Loss)
from ordinary activities after finance costs and exceptional items (5-6) |
412.300 |
235.600 |
647.900 |
|
8 |
Exceptional items |
|
|
|
|
|
Provision for Dimunition in Value of Investments in Subsidiary |
|
|
|
|
9 |
Profit / (Loss)
before tax (7+8) |
412.300 |
235.600 |
647.900 |
|
10 |
Tex expense |
92.700 |
72.500 |
165.200 |
|
11 |
Profit / (Loss)
after tax (9-10) |
319.600 |
163.100 |
482.700 |
|
|
Minority Interest |
|
|
|
|
|
Share of profit from Associate |
|
|
|
|
13 |
Net Profit |
319.600 |
163.100 |
482.700 |
|
16 |
Paid-up Equity Share Capital (Face value per share - Rs. 21- each) |
373.500 |
373.500 |
373.500 |
|
17 |
Reserves and Surplus |
|
|
|
|
|
Basic Earnings Per Share (in `) - Not Annualised |
1.72 |
0.87 |
2.59 |
|
|
Diluted Earnings Per Share (in `) - Not Annualised |
1.71 |
0.87 |
2.59 |
|
18 |
Debt Service Coverage Ratio {Profit Before Depreciation, Finance Costs and Tax Expense /(Finance Costs + Long Term Principal Repayment)} |
|
|
0.40 |
|
|
Interest Service Coverage Ratio (Profit Before Depreciation, Finance Costs and Tax Expense / Finance Costs) |
|
|
2.70 |
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
Number of shares |
96638350 |
96637204 |
96638350 |
|
|
Percentage of shareholding |
51.74% |
51.75% |
51.74% |
|
2 |
Promoters and promoter group shareholding a) Pledged / Encumbered |
|
|
|
|
|
Number of shares |
1338610 |
1338610 |
1338610 |
|
|
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
1.49% |
1.49% |
1.49% |
|
|
Percentage of shares (as a % of the total share capital of the company) |
0.72% |
0.71% |
0.72% |
|
|
b) Non-encumbered |
|
|
|
|
|
Number of shares |
88794880 |
88772130 |
88794880 |
|
|
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
98.51% |
98.51% |
98.51% |
|
|
Percentage of shares (as a % of the total share capital of the company) |
47.54% |
47.54% |
47.54% |
|
|
Particulars |
(30.09.2013) |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
Nil |
|
|
Disposed of during the quarter |
Nil |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT
(Rs. In Millions)
|
|
Particulars |
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1 |
Segment Revenues |
|
|
|
|
|
Cycles / Components / E Scooters |
3249.400 |
3067.300 |
6316.700 |
|
|
Engineering |
3722.900 |
3686.200 |
7409.100 |
|
|
Metal Formed Products |
2023.400 |
1838.000 |
3861.400 |
|
|
Insurance |
|
|
|
|
|
Gear and Gear Products |
|
|
|
|
|
Other Financial Services |
|
|
|
|
|
Others |
|
|
|
|
|
Un-allocable Operating Income |
0.300 |
0.500 |
0.800 |
|
|
Total |
8996.000 |
8592.000 |
17588.000 |
|
|
Inter Segment Revenue |
(355.300) |
(330.600) |
(685.900) |
|
|
Total Revenue |
8640.700 |
8261.400 |
16902.100 |
|
|
|
|
|
|
|
2 |
Segment Results |
|
|
|
|
|
Cycles / Components / E Scooters |
138.600 |
152.600 |
291.200 |
|
|
Engineering |
316.500 |
289.500 |
606.000 |
|
|
Metal Formed Products |
193.900 |
137.100 |
331.000 |
|
|
Insurance |
|
|
|
|
|
Gear and Gear Products |
|
|
|
|
|
Other Financial Services |
|
|
|
|
|
Others |
|
|
|
|
|
Total |
649.000 |
579.200 |
1228.200 |
|
|
Finance Costs |
(310.200) |
(304.100) |
(614.300) |
|
|
Other Net Un-allocable Income / (Expense) and Inter Segment Eliminations |
73.500 |
(39.500) |
34.000 |
|
|
Net Profit Before Tax |
412.300 |
235.600 |
647.900 |
|
|
|
|
|
|
|
3 |
Capital Employed (Segment Assets - Segment Liabilities) |
|
|
|
|
|
Cycles / Components / E Scooters |
984.200 |
581.400 |
984.200 |
|
|
Engineering |
5042.200 |
4908.700 |
5042.200 |
|
|
Metal Formed Products |
4895.900 |
4888.400 |
4895.900 |
|
|
Insurance |
|
|
|
|
|
Gear and Gear Products |
|
|
|
|
|
Other Financial Services |
|
|
|
|
|
Others |
|
|
|
|
|
Other Un-allocable Assets Net of Un-allocable Liabilities |
15723.200 |
15051.900 |
15723.200 |
|
|
Total |
26645.500 |
25430.400 |
26645.500 |
Note:
The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 31st October, 2013.
The Statutory Auditors of the Company have carried out a Limited Review of the above Unaudited Standalone and Unaudited Consolidated Financial Results for the quarter and half year ended 30th September, 2013.
During the quarter, the Company subscribed to 50,45,455 equity shares of Rs. 10/-each of Cholamandalam MS General Insurance Company Limited, a Subsidiary, offered on Rights basis at Rs.110/- per share.
During the quarter, the Company allotted 23,896 equity shares to its employees consequent to the exercise of options granted under the Company's Employees Stock Option Scheme.
Note on Consolidated Financial Results
Pursuant to the Insurance Regulatory and Development Authority (IRDA) Order No. IRDA/F&A/ORD/MTPP/070/03-2012 dated 22nd March, 2012, Cholamandalam MS General Insurance Company Limited, a Subsidiary of the Company, has recognized in its Miscellaneous Revenue Account with respect to Indian Motor Third Party Insurance Pool (IMTPIP) an amount of Rs. 137.200 millions. During the quarter, representing the cumulative differential actuarial estimated liability for the under writing years 2009-10, 2010-11 and 2011-12. The balance differential liability of Rs.274.500 millions. Will be absorbed in the sub sequent accounting periods up to March 2014.
The above financial results are also available on our website www.tiindia.com
Previous period figures have been re-grouped / re-classified, where necessary.
(Rs. In Millions)
|
SOURCES
OF FUNDS |
30.09.2013 |
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
373.500 |
|
(b) Reserves & Surplus |
11946.400 |
|
|
12319.900 |
|
Minority Interest |
-- |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term
borrowings |
7282.300 |
|
(b) Deferred tax liabilities (Net) |
511.500 |
|
(c) Other long
term liabilities |
-- |
|
(d) long-term
provisions |
-- |
|
|
7793.800 |
|
(4) Current Liabilities |
|
|
(a)
Short term borrowings |
3850.500 |
|
(b)
Trade payables |
5440.200 |
|
(c)
Other current liabilities |
3127.500 |
|
(d) Short-term
provisions |
340.700 |
|
|
12758.900 |
|
TOTAL |
32872.600 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a)
Fixed Assets |
8024.300 |
|
(b) Goodwill on Consolidation |
-- |
|
(c) Non-current
Investments |
15005.000 |
|
(d) Deferred tax
assets (net) |
-- |
|
(e) Long-term Loan and Advances |
811.900 |
|
(f)Receivable under Financing Activity |
-- |
|
(g) Other
Non-current assets |
-- |
|
|
23841.200 |
|
(2) Current assets |
|
|
(a)
Current investments |
0.200 |
|
(b)
Inventories |
3626.900 |
|
(c)
Trade receivables |
4565.700 |
|
(d) Cash
and cash equivalents |
398.700 |
|
(e)
Short-term loans and advances |
439.900 |
|
(f)Receivable under Financing Activity |
-- |
|
(g)
Other current assets |
-- |
|
|
9031.400 |
|
TOTAL |
32872.600 |
NEWS
TUBE INVESTMENT:
BOARD TO CONSIDER INTERIM DIVIDEND
Tube Investments of India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on February 04, 2014, inter alia, for1. approving the Unaudited Financial Results for the quarter and nine months ended December 31, 2013; &2. considering declaration of interim dividend , if any, for the financial year ending March 31, 2014.Further the Company has inform that in terms of the Company’s Code of Conduct for Prevention of Insider Trading, the 'Trading Window' for dealing in the securities of the Company has been closed for the Insiders of the Company from January 01, 2014 to February 05, 2014 (both days inclusive) in view of the impending publication of unaudited financial results of the Company for the quarter ending December 31, 2013.Source : BSE
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. 62.48 |
|
|
1 |
Rs. 102.95 |
|
Euro |
1 |
Rs. 84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
67 |
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.