MIRA INFORM REPORT

 

 

Report Date :

14.02.2014

 

IDENTIFICATION DETAILS

 

Name :

FINOLEX INDUSTRIES LIMITED

 

 

Registered Office :

Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

28.03.1981

 

 

Com. Reg. No.:

024153

 

 

Capital Investment / Paid-up Capital :

Rs.1240.868 Millions

 

 

CIN No.:

[Company Identification No.]

L40108PN1981PLC024153

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

KLPF00119A

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange

 

 

Line of Business :

Manufacturer of PVC Pipes and fittings.

 

 

No. of Employees :

1063 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (52)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 29000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well-established and reputed company having fine track record.

 

The rating FIL’s established position in the polyvinyl chloride (PVC) resins industry, leadership position in the PVC pipes industry, and high operating efficiency driven by integrated production process. Rating also reflects sound general financial risk profile and decent profitability of the company.

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

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 worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

 

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

CRISIL

Rating

Long term Rating : A+

Rating Explanation

Adequate degree of safety and low credit risk

Date

05 July 2013

 

 

Rating Agency Name

CRISIL

Rating

Short term Rating : A1

Rating Explanation

Very strong degree of safety and lowest credit risk

Date

05 July 2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY

 

Name :

Mr. S Krishna Moorthy

Designation :

General Manager Account and Finance 

Contact No.:

91-9371276569

Date :

11.02.2014

 

 

LOCATIONS

 

Registered Office/ Factory1 :

Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506, Maharashtra, India

Tel. No.:

91-2114-237251

Mobile No.:

91-9371276569 (Mr. S Krishna Moorthy)

Fax No.:

91-2114-237252

E-Mail :

investors@finolexind.com

aa@finolexind.com

sli@finolexind.com

sk@finolexind.com

Website :

www.finolex.com

Area:

30 Acers

Location:

Owned

 

 

Factory2 :

Pawas Road, Pawas, Ratnagiri 415612, Maharashtra, India

Tel. No.:

91-2352-238027 / 28 / 29 / 30 / 31

Fax No.:

91-2352-238033 / 238045

E-Mail :

jsa@rtg.finolexind.com

 

 

Factory3 :

D-1/10, MIDC, Chinchwad, Pune-411019, Maharashtra, India.

Tel. No.:

91-20-27443706

Fax No.:

Not Available

 

 

Branch office:

Located at

 

·         Ahmedabad

·         Bangalore

·         Chennai

·         Cochin

·         Indore

·         Mumbai

·         New Delhi

·         Kolkata

·         Secunderabad

·         Coimbatore

 

 

DIRECTORS

 

As on: 31.03.2013

 

Name :

Mr. Pralhad P. Chhabria

Designation :

Non-executive Chairman

(Upto 11th August, 2012)

 

 

Name :

Mr. Kishan P. Chhabria

Designation :

Executive Vice Chairman

(Upto 11th August, 2012)

 

 

Name :

Mr. Prakash P. Chhabria

Designation :

Executive Chairman

(effective 11th August, 2012)

 

 

Name :

Mr. Sanjay K. Asher

Designation :

Independent Director

 

 

Name :

Mr. Kanaiyalal N. Atmaramani

Designation :

Independent Director

 

 

Name :

Mr. Dara N. Damania

Designation :

Independent Director

 

 

Name :

Mr. Saurabh S. Dhanorkar

Designation :

Managing Director

(Effective 11th August, 2012)

 

 

Name :

Mr. Shrikrishna N. Inamdar

Designation :

Independent Director

 

 

Name :

Mr. Prabhakar D. Karandikar

Designation :

Independent Director

 

 

Name :

Mr. Sanjay S. Math

Designation :

Director (Operations)

 

 

Name :

Dr. Sunil U. Pathak

Designation :

Independent Director

 

 

Name :

Mr. Panyam Subramaniam

Designation :

Assistant Managing Director and Chief Financial Officer

 

 

KEY EXECUTIVES

 

Name :

Mr. Anil Atre

Designation :

Company Secretary

 

 

Name :

Mr. S Krishna Moorthy

Designation :

General Manager Account and Finance 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2013

 

Category of Shareholders

No. of Shares

Percentage of holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

1343599

1.08

http://www.bseindia.com/include/images/clear.gifBodies Corporate

63725448

51.35

http://www.bseindia.com/include/images/clear.gifSub Total

65069047

52.43

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

65069047

52.43

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

1147123

0.92

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

41649

0.03

http://www.bseindia.com/include/images/clear.gifInsurance Companies

950

0.00

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

5625817

4.53

http://www.bseindia.com/include/images/clear.gifSub Total

6815539

5.49

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

8044699

6.48

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

26676739

21.50

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Million

15978314

12.88

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

1511043

1.22

http://www.bseindia.com/include/images/clear.gifClearing Members

293103

0.24

http://www.bseindia.com/include/images/clear.gifNRIs/OCBs

783425

0.63

http://www.bseindia.com/include/images/clear.gifTrusts

1400

0.00

http://www.bseindia.com/include/images/clear.gifLimited Liability Partnership

515

0.00

http://www.bseindia.com/include/images/clear.gifEmployees

432600

0.35

http://www.bseindia.com/include/images/clear.gifSub Total

52210795

42.07

Total Public shareholding (B)

59026334

47.57

Total (A)+(B)

124095381

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

124095381

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of PVC Pipes and fittings.

 

 

Products :

Item Code No. (ITC Code)

Product Description

39042110

S PVC Resin

39042210

E PVC Resin

39172390

PVC Pipes

39174000

PVC Fittings

Not Available

Power

 

 

Imports :

 

Products :

Raw Material

Countries :

·         China

 

 

Terms :

 

Selling :

Cash 

 

 

Purchasing :

L/C

 

 

GENERAL INFORMATION

 

Suppliers:

Sabec, South Africa

 

 

Customers :

Finolex Cable Limited, Pune, Maharashtra, India

 

 

No. of Employees :

1063 (Approximately)

 

 

Bankers :

·         Bank of India

·         ICICI Bank Limited

·         Bank of Baroda

·         Citibank N.A.

·         Bank of Maharashtra

·         Corporation Bank

 

 

Facilities :

·         Fund and Non Fund: Rs.14000.000 Millions (From Bank of India)

 

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Debentures*

 

 

500 (500) 9.50% Secured redeemable non-convertible debentures of  Rs.10,00,000 each

500.000

500.000

Less: Redeemed during the year

150.000

0.000

Less: Current maturities of long term debt

150.000

150.000

 

200.000

350.000

1000 (1000) 12.25% Secured redeemable non-convertible debentures of Rs. 10,00,000 each.

1000.000

1000.000

Less: Current maturities of long term debt

1000.000

1000.000

 

0.000

1000.000

Term loans

From Banks

Term loan from ICICI Bank Ltd.was availed in F.Y.2007-08 and carries interest at the rate of 1.37438 % p.a.. The loan is repayable in 3 equal installments beginning from F.Y.2011-12.

 

1st Installment of term loan from Central Bank of India was availed in F.Y.2011-12

and carries interest at the rate of 11.75 % p.a. The loan is repayable in 3 equal annual

installments from the date of disbursement.

 

Deferred payment liabilities

1000.000

348.520

Short-term borrowings

 

 

Acceptances from banks

5257.374

8166.944

Working capital borrowings from banks

451.846

61.890

Total

6909.220

9927.354

NOTE:

 

Terms of debentures redemption:

 

500 privately placed secured redeemable non-convertible debentures of Rs. 1.000 Millions each, aggregating to 500.000 Millions with LIC of India will be redeemed in three installments commencing at the end of 3rd, 4th and 5th year from the date of allotment i.e. 21st September, 2009 in the ratio of 3:3:4. 1000 privately placed secured redeemable non-convertible debentures of Rs. 1.000 Millions each, aggregating to 1000.000 Millions with LIC of India will be redeemed in full at par at the expiry of five years from the date of allotment i.e. 17th November, 2008.

 

The outstanding amount payable on the debentures mentioned at Note 1.2 with the interest accrued thereon but unpaid and all other costs, charges, expenses and fees payable to the debenture trustees namely Axis Trustee Services Limited (“ATSL”) under the Debenture Trust deed dated 16th February, 2009 for 12.25% NCDs of Rs.1000.000 Millions and Debenture Trust Deed dated 5th March, 2010 for 9.50% NCDs of Rs.500.000 Millions respectively have been secured by creation of English mortgage on pari passu basis in favour of ATSL on the Company’s immovable properties situated at 1B, 1st Floor, Mahakant Building, Ellisbridge, Ahmedabad in the State of Gujarat.

 

The outstanding amount payable on the:

 

(a) 12.25% NCDs of Rs.10,00.000 Millions redeemable on 17th November, 2013 i.e., after 5 years from deemed date of allotment i.e., 17th November, 2008 for which ATSL is acting as security trustee;

 

(b) 9.50% NCDs of Rs.500.000 Millions redeemable in 3 installments commencing at the end of 3rd, 4th and 5th year from the date of allotment i.e. 21st September, 2009 (accordingly first installment has been paid) in the ratio of 3:3:4 for which ATSL is acting as security trustee.

 

(c) Borrowings by way of foreign currency term loan amounting to JPY 719.100 Millions availed from ICICI Bank Limited, Singapore Branch (the “ICICI Bank”) in the year 2007-2008 at the interest rate of LIBOR+1.04% p.a. repayable in 3 yearly equal installments beginning from financial year 2011-2012 (accordingly the first two installments have been paid), for which Axis Bank Limited (the “ABL”) is acting as security trustee.

 

Together with all interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, expenses and other moneys and fees payable as applicable under the respective Deeds and Agreement are secured by: equitable mortgage created in favour of the ATSL and the ABL on pari passu basis by depositing with ABL, New Delhi, ABL acting for itself and as an agent of ATSL, all the documents of title, evidences, title deeds and writings in respect of immovable properties falling within the battery limit of the site of the Company’s plant for manufacture of PVC Resin, situate at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plants and machinery attached to the earth or permanently fastened to anything attached to the earth; and

 

(d) Borrowing by way of term loan amounting to Rs.1000.000 Millions sanctioned from Central Bank of India, Pimpri Branch, Pune (the “Central Bank”) and partly availed in tranches at the interest rate of Base rate+0.75% p.a. repayable in 3 yearly equal installments on the expiry of 3rd, 4th and 5th year from the date of disbursement together with all interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, expenses and other moneys and fees payable as applicable under the respective Deeds and Agreement are secured by:

 

equitable mortgage created in favour of Central Bank of India, Pimpri, Pune by depositing all the documents of title, evidences, title deeds and writings in respect of immovable properties falling within the battery limit of Company’s captive power plant situate at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth and

 

The aggregate limits of working capital borrowings of Rs.13957.500 Millions from the Bank of India Consortium together with all interest, liquidated damages, costs, charges and other moneys payable under working capital consortium agreement/sanction letters are secured by:

 

(a) Hypothecation of inventories and book debts; and

 

(b) by extension of second equitable mortgage, created in favour of Bank of India Consortium by deposit of title deeds with ABL, ABL acting as an agent for Bank of India Consortium, which ranks subsequent and subservient in rank of priority over the first equitable mortgages created / to be created by deposit of title deeds in respect of immoveable properties falling within the battery limit of the site of the Company’s plant for manufacture of PVC Resin, situate at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached

to the earth or permanently fastened to anything attached to the earth.

 

 

 

Banking Relations :

 

 

 

Auditors :

 

Name :

P. G. Bhagwat

Chartered Accountants

Address :

Pune, Maharashtra, India

 

 

Solicitors and Advocates:

 

Name :

Crawford Bayley and Company

Address :

Mumbai, Maharashtra, India

 

 

Related parties::

·         Pawas Port Limited

·         Finolex Plasson Industries Private Limited

 

 

Enterprises over which key management personnel or their relatives exercise significant influence:

·         Finolex Cables Limited

·         Finprop Advisory Services Limited

·         Magnum Machine Technologies Limited

·         Kaya Software Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

150000000

Equity Shares

Rs.10/- each

Rs. 1500.000 Millions

 

Unclassified Shares

 

Rs. 850.000 Millions

 

Total

 

Rs. 2350.000 Millions

 

Issued, Subscribed and Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

124095381

Equity Shares

Rs.10/- each

Rs. 1240.954 Millions

 

Less : Amount in Arrears, other than from Directors

 

Rs. 0.086   Millions

 

Total

 

Rs. 1240.868 Millions

 

NOTE:

 

Reconciliation of the Shares Outstanding:

 

 

31.03.2013

Equity Shares

No. of Shares

Amount

At the beginning of the period

124060235

1240.602

Add: Allotted during the period pursuant to

section 81(1A) of the Companies Act,1956.

--

--

Outstanding at the end of the period

124095381

1240.954

 

Terms/ Rights attached to equity shares:

 

The Company has only class of equity shares having a par value of Rs.10 per share. Each holder of the equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2013, the amount of per share dividend recognised as distributed to equity shareholders was Rs 5.50 (March 31, 2012 Rs.3.00). In the event of liquidation of the Company, the holders of equity shares are entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

 

31.03.2013

Details of shareholders holding more than 5% shares

in the company:

No. of Shares

% of Holding

Equity shares of Rs. 10 each fully paid

Finolex Cables Limited

40192597

32.39

Orbit Electricals Private Limited

23318901

18.79

TOTAL

63511498

51.18

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1240.868

1240.868

1240.448

(b) Reserves & Surplus

5970.759

5380.224

4962.698

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

7211.627

6621.092

6203.146

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1397.087

1895.607

1954.380

(b) Deferred tax liabilities (Net)

936.358

898.555

800.698

(c) Other long term liabilities

4.676

3.762

5.875

(d) long-term provisions

136.507

36.459

51.259

Total Non-current Liabilities (3)

2474.628

2834.383

2812.212

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

5709.220

8228.834

5391.423

(b) Trade payables

1851.093

1297.481

2408.611

(c) Other current liabilities

2341.848

1407.510

1835.442

(d) Short-term provisions

796.745

444.161

445.705

Total Current Liabilities (4)

10698.906

11377.986

10081.181

 

 

 

 

TOTAL

20385.161

20833.461

19096.539

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

8788.558

7829.296

7923.543

(ii) Intangible Assets

6.697

10.850

1.214

(iii) Capital work-in-progress

506.061

853.589

721.694

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1274.040

1220.855

1220.855

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

111.532

218.746

110.093

(e) Other Non-current assets

84.990

729.612

632.614

Total Non-Current Assets

10771.878

10862.948

10610.013

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

2322.046

3711.230

859.023

(b) Inventories

4827.785

3263.208

4013.140

(c) Trade receivables

387.210

469.342

1234.362

(d) Cash and cash equivalents

90.484

290.759

268.561

(e) Short-term loans and advances

1985.758

2235.974

2111.440

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

9613.283

9970.513

8486.526

 

 

 

 

TOTAL

20385.161

20833.461

19096.539

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

21448.214

20997.752

19777.262

 

 

Other Income

333.701

304.600

293.599

 

 

TOTAL                                     (A)

21781.915

21302.352

20070.861

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

14603.496

14968.773

12704.599

 

 

Purchases of stock-in-trade

6.374

446.379

575.323

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

(270.076)

84.747

319.191

 

 

Employee benefits expense

720.578

564.078

505.335

 

 

Other expenses

3761.326

2766.219

3475.968

 

 

TOTAL                                     (B)

18821.698

18830.196

17580.416

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

2960.217

2472.156

2490.445

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

514.489

749.607

596.628

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

2445.728

1722.549

1893.817

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

544.164

755.128

744.291

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1901.564

967.421

1149.526

 

 

 

 

 

Less

TAX                                                                  (H)

540.195

215.908

387.816

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1361.369

751.513

761.710

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

815.605

819.254

842.944

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

General reserve

400.000

200.000

200.000

 

 

Debenture redemption reserve

0.000

0.000

150.000

 

 

Contingency reserve

121.500

121.500

0.000

 

 

Proposed dividend (including prior year adjustments)

682.525

373.268

372.100

 

 

Tax on dividend

110.740

60.394

63.300

 

BALANCE CARRIED TO THE B/S

983.709

815.605

819.254

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw materials *

13192.146

12169.562

12449.719

 

 

Stores, spares and components

25.672

26.879

13.266

 

 

Capital goods

256.208

88.054

50.647

 

TOTAL IMPORTS

* inclusive of highseas purchases

13474.026

12284.495

12513.632

 

 

 

 

 

 

Earnings Per Share (Rs.)

10.97

6.06

6.14

 

Expected Sales (2013-2014): Rs.23100.000 Millions

 

The above information has been parted by Mr. S Krishna Moorthy (General Manager Account and Finance)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
6.25

3.53

3.80

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
8.87

4.61

5.81

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
10.22

5.16

6.70

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.26

0.15

0.19

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
0.99

1.53

1.18

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.90

0.88

0.84

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

1240.448

1240.868

1240.868

Reserves & Surplus

4962.698

5380.224

5970.759

Net worth

6,203.146

6,621.092

235.174

 

 

 

 

long-term borrowings

1954.380

1895.607

1397.087

Short term borrowings

5391.423

8228.834

5709.22

Total borrowings

7,345.803

10,124.441

445.57

Debt/Equity ratio

1.184

1.529

1.895

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

19777.262

20997.752

21448.214

 

 

6.171

2.145

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

19777.262

20997.752

21448.214

Profit

761.71

751.513

1361.369

 

3.85%

3.58%

6.35%

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

LITIGATION DETAILS

 

CASE DETAILS

 

BENCH:-BOMBAY

 

 

Lodging No.:-

CEXAL/300/2007

Filing Date:-

16/11/2007

Reg. No.:-

CEXA/69/2011

Reg. Date:-

09/06/2011

 

 

 

 

Petitioner:-

The Commissioner Of Central Excise-Pune-II

Respondent:-

M/S Finolex Industries Limited

 

 

 

Petn.Adv.:-

Mandar Mahesh Goswami

 

 

 

District:-

PUNE

 

 

 

 

Bench:-

DIVISION

 

 

 

 

Status:-

Admitted(Unready)

Category:-

CENTRAL EXCISE APPEAL (CEXA)

 

 

 

Last Date:-

27/03/2012

Stage:-

FOR ADMISSION - FRESH

 

 

 

Last Coram:-

HON'BLE SHRI JUSTICE J.P. DEVADHAR

 

 

 

 

HON'BLE SHRI JUSTICE A.R. JOSHI

 

 

 

 

Act :-

Central Excise and Salt Act

 

 

 

 

 

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Sales tax deferral loan

Deferred sales tax loan is interest free and payable in 10 yearly installments of various

amounts starting from March 2020.

197.087

197.087

Total

197.087

197.087

 

FINANCIAL REVIEW

 

The Company has achieved an all time high profitability during the year. EBIDTA margins have shown a jump from about 12% to 14% while net profit before tax for the year has almost doubled from Rs.970.000 Millions to Rs.1900.000 Millions. The turnover has only marginally increased from Rs.21000.000 Millions to Rs.21450.000 Millions since the captive consumption of PVC resin i.e. internal transfer from the PVC division to the PVC pipes division is netted from the turnover.

 

OUTLOOK FOR THE COMPANY

 

PVC PIPES AND FITTINGS DIVISION:

 

The Company is India’s largest manufacturer of PVC pipes and fittings. The Company has achieved 27% growth in the sale of pipes and fittings during the year. This was possible because of the very strong affiliation to brand “Finolex” instilled by the Company in the hearts of lacs of consumers spread across the length and breadth of India. Finolex pipes and fittings are available in every state of the country and are sold through a network of dealers, subdealers and retailers. The name Finolex stands for the highest quality of pipes and fittings.

 

The Company is the only PVC pipe manufacturer with its own PVC resin plant which gives it complete control on the quality of pipes.

 

The Company has always been deeply involved in the rural markets of India. With the rural economy poised for a substantial growth, the Company is ideally positioned to reap the benefits.

 

Government of India has declared rural water management as its focus area. It has set a target of bringing 65.000 Millions hectares of land under irrigation by 2020. The Twelfth Five Year Plan envisages investment in excess of Rs.5000000.000 Millions for the irrigation sector. Further, an amount of Rs.230000.000 Millions has been set aside for water management. This will give further boost to the PVC pipes and fittings demand.

 

Over the years, the Company’s sales in the northern region have been growing by leaps and bounds, so much so that the Company felt the need to establish a new plant to cater to the ever growing demand from this region. The Company selected Vadodara in Gujarat as the ideal location to set up a green field PVC pipes plant. The state-of-the-art plant at Masar in Vadodara has been commissioned during the year with an initial capacity of 30,000 tons per annum (tpa). The Company plans to scale this up to 50,000 tpa during 2013-14. During 2012-13, the Company’s aggregate capacity of PVC pipes and fittings has crossed 200000 tpa. The Company is already looking at further expansion / debottlenecking of the PVC pipes and fittings division.

 

PVC RESIN DIVISION:

 

The domestic demand for PVC resin has grown by almost 12% in the country whereas the installed capacity has remained stagnant during the year. India is a net importer of PVC resin and the demand supply gap has crossed one million tpa. The per capita consumption of PVC resin in India is hardly 2 kg as compared to 10 kg in China and 12 kg in USA. It is expected that the PVC demand in India will continue to grow for years to come.

 

The Company produces Emulsion PVC resin which is a special grade used in various applications like artificial leather cloth, footwear, flooring, etc. The value addition on this application is much higher than Suspension PVC resin. The Company has recently completed an expansion of the Emulsion PVC resin capacity from 11,000 tpa to 22,000 tpa. There is already a demand supply gap prevalent in the Indian market for Emulsion PVC. The Company should be able to place the additional capacity in the market without difficulty.

 

CAPTIVE POWER PLANT DIVISION:

 

The Company has been consistently working towards achieving higher productivity and better operating efficiencies. In order to ensure continuous high quality power, the Company decided to set up a 43 MW power plant at Ratnagiri. The plant is designed to also take care of the future power requirements of the Company. With the coal prices coming down from its peak two years ago, the power plant is generating substantial savings for the Company as compared to the cost of purchase of power from the grid. The uninterrupted supply of quality power has also benefited the production of PVC and PVC pipes in Ratnagiri.

 

GLOBAL SCENARIO

 

The global demand of PVC stands at around 37.5 million tpa. The growth rate for 2012-13 has been around 2%. As against this, the Indian market for PVC resin has grown by almost 12% during 2012-13. The demand supply gap which currently stands at around 1 million tpa is expected to grow over the years. Globally, the application of PVC in pipes and fittings accounts for almost 43% of the total consumption. In India, the application of PVC in pipes and fittings is almost 70% of the total consumption. The Company’s leadership position in this segment offers it a distinct advantage.

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10382832

28/09/2012

1,000,000,000.00

CENTRAL BANK OF INDIA

JEWEL OF PIMPRI, B WING, 1ST FLOOR, KAMLA CROSS
ROAD, OPP.PCMC BHAVAN, PIMPRI, PUNE, MAHARASHTRA - 411018, INDIA

B60589355

2

10206653

06/03/2010 *

500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

MAKER TOWERS 'F', 6TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA

A82227877

3

10154826

25/03/2009 *

1,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

MAKER TOWERS 'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA

A61668513

4

10106975

31/03/2011 *

345,200,000.00

AXIS BANK LIMITED

2ND FLOOR, AXIS HOUSE,BOMBAY DYEING MILL COMPOUND,
BUDHKAR PANDURANG MARG, WORLI, MUMBAI, MAHARASHTRA - 400005, INDIA

B12176756

5

90084424

31/03/2011 *

13,957,500,000.00

BANK OF INDIA

PUNE CORPORATE BANKING BRANCH 1162/6, SHIVAJI NAGAR, UNIVERSITY ROAD,, PUNE, MAHARASHTRA - 411005,
INDIA

B12105359

 

Note: * Date of charge modification

 

CONTINGENT LIABILITIES:

 

(Rs. in millions)

PARTICULARS

31.03.2013

31.03.2012

 

 

 

Guarantees given by the Company’s bankers on behalf of the Company towards performance and other matters.

85.412

142.144

Claims against the Company not acknowledged as debt:

 

 

Liabilities in respect of income tax matters for which the Company has succeeded in appeal but Income Tax Department has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments.

17.938

17.938

Liabilities in respect of income tax matters for which the Company has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments.

43.623

41.222

Excise/customs/service tax in respect of which either show cause notice is received or the Company/Department is in appeal.

437.944

267.487

Amounts claimed by banks in respect of derivative transactions which are under dispute not acknowledged as debt.

1161.753

2225.430

Estimated amount of contracts remaining to be executed on capital account and not provided for

171.631

331.709

 

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND Nin MONTHS ENDED 31st DECEMBER, 2013

(Rs. In Millions)

Sr. No.

Particulars

Quarter ended 31-12-2013 (Unaudited)

Quarter ended 30-09-2013 (Unaudited)

Year to ended 31-12-2013

(Unaudited)

1

Income from operations

 

 

 

 

 

(a) Net Sales/Income from Operations (Net of excise duty)

6542.540

3848.945

15942.801

 

 

(b) Other Operating Income

56.319

50.160

190.097

 

Total income from operations (net) (a) + (b)

6598.859

3899.105

16132.898

2

Expenses

(a) Cost of materials consumed

5117.070

3181.495

12404.682

 

 

(b) Purchases of stock-in-trade

--

-

--

 

 

(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

(812.702)

(872.020)

(1960.838)

 

 

(d) Employee benefits expense

194.853

174.857

536.929

 

 

(e) Depreciation and amortisation expense

177.493

148.172

472.114

 

 

(f) Power and Fuel

373.390

197.023

823.218

 

 

(g) Other expenditure

546.486

402.622

1388.198

 

Total expenses

5596.590

3232.150

13664.303

3

Profit / (Loss) from operations before other income, finance costs and exceptional items (1-2)

1002.269

666.956

2468.595

4

Other Income

8.866

171.725

374.937

5

Profit/ (Loss) from ordinary activities before finance costs and exceptional items(3 + 4)

1011.135

838.681

2843.532

6

Finance costs

187.721

121.935

446.755

7

Profit/ (Loss) from ordinary activities after finance costs but before exceptional items(5 - 6)

823.415

716.746

2396.776

8

Exceptional items

96.432

(325.623)

(768.095)

9

Profit / (Loss) from ordinary activities before tax (7 + 8)

919.846

391.123

1628.682

10

Tax Expense

280.949

116.945

489.139

11

Net Profit/(Loss) from ordinary activities after tax (9-10)

638.897

274.178

1139.543

12

Extraordinary Items (net of tax expense)

--

-

--

13

Net Profit / (Loss) for the period (11 -12)

638.897

274.178

1139.543

14

Share of profit / (loss) of associates

--

-

--

15

Minority interest

--

-

--

16

Net Profit/ (Loss) after taxes, minority interest and share of profit of associates (13 +14 +15)

638.897

274.178

1139.543

17

Paid-up equity share capital (Nominal value Rs. 10 per share)

1240.954

1240.954

1240.954

18

Paid-up Debt capital

 

 

 

19

Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

 

 

 

20

Debenture Redemption Reserve

 

 

 

20

 

Earnings per share (before extraordinary items) (of Rs. 10/-each)(not annualised):

(a)        Basic.

(b)        Diluted '

5.15

2.21

9.18

20

Earnings per share (after extra ordinary items) (of Rs. 10/-each)(notannualised):

(a)        Basic .

(b)        Diluted '

5.15

2.21

9.18

21

Debt Equity Ratio

 

 

 

22

Debt Service Coverage Ratio

 

 

 

23

Interest Service Coverage Ratio

 

 

 

Sr. No.

Particulars

Quarter ended 31-12-2013 (Unaudited)

Quarter ended 30-09-2013 (Unaudited)

Year to ended 31-12-2013

(Unaudited)

A 1

PARTICULARS OF SHAREHOLDING

 

 

 

 

 

Public shareholding -Number of shares

59,026,334

59,087,784

59,026,334

 

 

- Percentage of shareholding

47.57

47.61

47.57

2

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged/Encumbered - Number of shares

NIL

NIL

NIL

 

 

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

NIL

NIL

NIL

 

 

- Percentage of shares (as a % of the total share capital of the company)

NIL

NIL

NIL

 

 

b) Non-encumbered

 

 

 

 

 

-           Number of shares

-           Percentage of shares (as a % of the total shareholding of promoter and promoter group)

65,069,047

100.00

65,007,597 100.00

65,069,047

100.00

 

 

- Percentage of shares (as a % of the total share capital of the company)

52.43

52.39

52.43

 

Particulars

Quarter ended 31.12.2013

B    INVESTOR COMPLAINTS

 

Pending at the beginning of the quarter

0

Received during the quarter

3

Disposed off during the quarter

3

Remaining unresolved at the end of the quarter

0

 

SEGMENT WISE REVENUE, RESULT AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars

Quarter ended 31-12-2013 (Unaudited)

Quarter ended 30-09-2013 (Unaudited)

Year to ended 31-12-2013

(Unaudited)

SEGMENT REVENUE

Net Sale /Income from each segment:

 

 

 

PVC

4910.497

3244.959

11782.809

PVC Pipes & Fittings

3818.577

2778.663

10946.421

Power

345.536

406.096

1201.979

Total

9074.610

6429.718

23931.209

Less: Intersegment Revenue

2475.751

2530.613

7798.311

Net Sales / Income from Operations

6598.859

3899.105

16132.898

SEGMENT RESULTS

 

 

 

Profit / (Loss) before tax and interest from each segment:

 

 

 

PVC

711.397

378.745

15139.09

PVC Pipes & Fittings

339.754

236.200

931.248

Power

31.411

103.148

232.025

Total

1082.562

718.093

2677.182

Less:

 

 

 

Interest

187.721

121.935

446.755

Other un allocable expenditure

80.104

377.818

1072.817

Add:

 

 

 

Other un allocable income

105.110

172.783

471.072

Total Profit / (Loss) Before Tax

919.847

391.123

1628.682

CAPITAL EMPLOYED

 

 

 

Segment Assets-Segment Liabilities:

 

 

 

PVC

7806.462

7400.419

7806.462

PVC Pipes & Fittings

4583.344

3838.833

4583.344

Power

2695.763

2742.951

2695.763

Other than segments

3722.666

2734.469

3722.666

Total

18808.235

16716.673

18808.235

 

BALANCE SHEET AS AT 30TH SEPTEMBER, 2013

(Rs. In Millions)

Sr.No.

Particulars

As at 30th September 2013

A

EQUITY AND LIABILITIES

 

1

Shareholders' Funds

 

 

(a) Share Capital

1240.868

 

(b) Reserves & Surplus

6471.410

 

Sub-total - Shareholders' funds

7712.278

2

Non-Current Liabilities

 

 

(a) Long-term borrowings

1197.087

 

(b) Deferred tax liabilities (net)

957.254

 

(c) Other long-term liabilities

4.561

 

(d) Long-term provisions

75.415

 

Sub-total - Non-current liabilities

2234.316

3

Current liabilities

 

 

(a) Short-term borrowings

5405.369

 

(b) Trade payables

301.703

 

(c) Other current liabilities

3682.149

 

(d) Short-term provisions

5.480

 

Sub-total - Current liabilities

9394.701

 

TOTAL - EQUITY AND LIABILITIES

19341.296

B

ASSETS

 

1

Non-current assets

 

 

(a) Fixed assets

9309.876

 

(b) Non-current investments

1274.040

 

(c) Deferred tax assets (net)

-

 

(d) Long-term loans and advances

74.795

 

(e) Other non-current assets

137.650

 

Sub-total - Non-current assets

10796.360

2

Current assets

 

 

(a) Current investments

-

 

(b) Inventories

5109.918

 

(c) Trade receivables

83.700

 

(d) Cash and cash equivalents

106.783

 

(e) Short-term loans and advances

3244.535

 

Sub-total - Current assets

8544.936

 

TOTAL-ASSETS

19341.296

 

Note: Exceptional items represent foreign exchange (loss) /gain and settlement of claim against derivative as below:

 

(Rs. In Millions)

Sr. No.

Particulars

Quarter ended 31.12.2013 (Unaudited)

Quarter ended 30-09-2013 (Unaudited)

Year to ended 31-12-2013

(Unaudited)

a

Realised

(327.310)

(306.355)

(580.101)

b

Unrealised

423.742

(19.268)

(187.994)

c

Total

96.432

(325.623)

(768.095)

 

·         Previous periods 'figures have been regrouped wherever necessary to conform to the current period's classification.

·         The "Limited Review" of the financial results of the Company for the half year ended 31.12.2013 has been completed by the statutory auditors.

·         The above results have been reviewed by audit committee and approved bythe Board at its meeting held on 25.01.2014

 

FIXED ASSETS

 

Tangibles Assets

 

·         Free hold land

·         Lease hold land

·         Buildings

·         Plant and machinery

·         Office equipment’s

·         Furniture & fixtures

·         Vehicles

·         Aircraft

 

Intangibles Assets

 

·         Computer software

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.62.27

UK Pound

1

Rs.103.47

Euro

1

Rs.84.87

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Report Prepared by :

KVT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

52

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.