MIRA INFORM REPORT

 

 

Report Date :

04.01.2014

 

IDENTIFICATION DETAILS

 

Name :

GRINDWELL NORTON LIMITED

 

 

Registered Office :

5th Level, Leela Business Park, Andheri- Kurla Road, Marol, Andheri East, Mumbai-400059, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

31.07.1950

 

 

Com. Reg. No.:

11-008163

 

 

Capital Investment / Paid-up Capital :

Rs.276.800 Millions

 

 

CIN No.:

[Company Identification No.]

L26593MH1950PLC008163

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMG00425F

NGPG00974B

NGPG00471C

 

 

PAN No.:

[Permanent Account No.]

AAACG8725B

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer and Exporter of Bonded Abrasives, Coated Abrasive Products, Super Abrasives, Abrasive Grains and Refractories.

 

 

No. of Employees :

2000 [Approximately] 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (63)

 

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 20849000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a part of Saint Gobain group.

 

It is a well-established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered 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.

 

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

AA [Fund Based Limits]

Rating Explanation

High credit quality and low credit risk.

Date

February 2013

 

 

Rating Agency Name

ICRA

Rating

A1+ [Non Fund Based Limits]

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

February 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. Abhijit Malgaonkar

Designation :

Credit Control Executive

Contact No.:

91-22-40212121

Date :

02.01.2014

 

 

LOCATIONS

 

Registered Office :

5th Level, Leela Business Park, Andheri- Kurla Road, Marol, Andheri East, Mumbai-400059, Maharashtra, India

Tel. No.:

91-22-40212121

Fax No.:

91-22-40212102

E-Mail :

viswesh.k@saint-gobain.com

 

 

Factory 1 :

Located at:

Mora-Nad-Karanja, District Raigad - 400 704, Maharashtra, India

Tel No.:

91-22-27230021 / 22 / 23 / 24 / 25 / 26

 

 

Factory 2 :

Devanhalli Road, Off Old Madras Road, Bangalore - 560 049, Karnataka, India

Tel No.:

91-80-28471731 / 2 / 3 / 4  / 5 / 7

Fax No.:

91-80-28471736

 

 

Factory 3 :

Cuddapah Road, Tirupati, Reniguna - 517 520, Andhra Pradesh, India

Tel No.:

91-8574-275731-5

Fax No.:

91-8574-275736

 

 

Factory 4 :

G-51, Butibori Industrial Area, Village Tembhari, Taluka Hingna, District Nagpur, Maharashtra, India

Tel No.:

91-7103-262751 / 2 / 3                                

Fax No.:

91-7103-262451

 

 

Factory 5 :

Located at:

Bated, District Solan, Himachal Pradesh, India

 

 

Factory 6 :

Located at:

Halol, Gujarat, India

 

 

DIRECTORS

 

AS ON 31.03.2013

 

Name :

Mr. P. Shah

Designation :

Chairman

 

 

Name :

Mr. K.M. Elavia

Designation :

Director

 

 

Name :

Mr. M A Chupin

Designation :

Director

 

 

Name :

Mr. J P Floris

Designation :

Director

 

 

Name :

Mr. P Millot

Designation :

Director

 

 

Name :

Mr. M. M. Narang

Designation :

Director

 

 

Name :

Mr. J A J Pereira

Designation :

Alternate Director to Ms. M A Chupin

 

 

Name :

Mr. S Salgaocar

Designation :

Director

 

 

Name :

Mr. G. Texier

Designation :

Director

 

 

Name :

Mr. A Y Mahajan

Designation :

Managing Director

 

 

Name :

Mr. N D Sidhva

Designation :

Director [Emeritus]

 

 

KEY EXECUTIVES

 

MANAGEMENT COMMITTEE:

 

Name :

Mr. J A J Pereira

Designation :

HR and Corporate Services

 

 

Name :

Mr. K K Prasad

Designation :

Ceramics and Plastics

 

 

Name :

Mr. M A Puranik

Designation :

Finance and IT

 

 

Name :

Mr. M Ramarathnam

Designation :

Project and EHS

 

 

Name :

Mr. N. Sreedhar

Designation :

Abrasives

 

 

Name :

Mr. K. Visweswaran

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2013

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(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

4114352

7.43

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

150000

0.27

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

4264352

7.70

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

 

 

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

28414000

51.33

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

28414000

51.33

Total shareholding of Promoter and Promoter Group (A)

32678352

59.03

(B) Public Shareholding

 

 

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

 

 

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

4811456

8.69

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

3800

0.01

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

84692

0.15

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

1105168

2.00

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

6005116

10.85

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

 

 

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

2118654

3.83

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

4026650

7.27

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

9753897

17.62

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

777331

1.40

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

118131

0.21

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

659200

1.19

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

16676532

30.12

Total Public shareholding (B)

22681648

40.97

Total (A)+(B)

55360000

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)

55360000

0.00

 

 

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PROMOTER AND PROMOTER GROUP”

 

Sl.
No.

Name of the Shareholder

Details of Shares held

 

 

No. of Shares held

As a % of
grand total
(A)+(B)+(C)

1

Saint - Gobain Abrasives Inc

1,48,17,760

26.77

2

Societe De Participations Financieres Etindustrielles

1,35,96,240

24.56

3

Vera Mahajan

6,47,800

1.17

4

Khursheed M Narang

5,55,000

1.00

5

Aloo N Sidhva

4,48,668

0.81

6

Noshir Dinshaw Sidhva

4,41,604

0.80

7

Anand Mahajan

4,98,422

0.90

8

Aakil A Mahajan

4,02,079

0.73

9

Danesh M Narang

3,34,500

0.60

10

Mikhil M Narang

3,35,500

0.61

11

Ashaita A Mahajan

3,81,779

0.69

12

Saint Gobain Glass India Limited

1,50,000

0.27

13

Malvinder C Narang

69,000

0.12

 

Total

3,26,78,352

59.03

 

 

SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN 1% OF THE TOTAL NUMBER OF SHARES

 

Sl.
No.

Name of the Shareholder

Details of Shares held

 

 

No. of Shares held

As a % of
grand total
(A)+(B)+(C)

1

HDFC Trustee Company Limited - HDFC Prudence Fund

1537532

2.78

2

HDFC Trustee Company Limited - A/c HDFC MID CAP Opportunities Fund

1418279

2.56

3

HDFC Trustee Company Limited - HDFC MF Monthly Income Plan Long Term Plan

942719

1.70

4

Yasmen Soarab Mehta

678080

1.22

5

Naushad Sorab Mehta

675440

1.22

6

Naira S Variava

663606

1.20

7

Meheru Soarab Mehta

644320

1.16

8

Sudarshan Securities Private Limited 

626040

1.13

9

Firdaus S Variava

618432

1.12

10

Nina G Bharucha

587232

1.06

11

Mayank Jashwantlal Shah 

562000

1.02

 

Total

8953680

16.17

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Bonded Abrasives, Coated Abrasive Products, Super Abrasives, Abrasive Grains and Refractories.

 

 

Exports :

 

Products :

Bonded Abrasives, Coated Abrasive Products, Super Abrasives, Abrasive Grains and Refractories

Countries :

·         Dubai

·         Africa

·         Bangladesh

·         Japan

·         Pakistan

·         South Arabia

·         UAE

·         Sri Lanka

·         Taiwan

 

 

Imports :

 

Products :

Raw Material

Countries :

·         China

·         Taiwan

·         Korea

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

2000 [Approximately] 

 

 

Bankers :

·         Central Bank of India, Mahatma Gandhi Road, Mumbai-400023, Maharashtra, India

·         Corporation Bank

·         ICICI Bank Limited

·         State Bank of India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kalyaniwalla and Mistry

Chartered Accountants

 

 

Holding Company :

Compagnie De Saint-Gobain

 

 

Fellow Subsidiaries :

·         Saint-Gobain Abrasives Inc, Worcester USA

·         Saint-Gobain Universal Superabrasives, Inc

·         Saint-Gobain Abrasives Korea

·         Saint-Gobain Vibros S.A.

·         Saint-Gobain Abrasives Limited - Stafford-UK

·         Savoi Refractories

·         Saint-Gobain Abrasives Limited, New Zealand

·         SEPR Refractories India Limited

·         Saint-Gobain Abrasives Ltda., Brazil

·         SEPR, France

·         Saint-Gobain Abrasives Ltda., Portugal

·         Saint-Gobain Advanced Ceramics (Shanghai) Co Limited

·         Saint-Gobain Abrasives Singapore (PTE) Limited

·         Saint-Gobain Materiaux Ceramiques Benelux SA

·         Saint-Gobain Abrasives SP. Z.O.O

·         Saint-Gobain Performance Plastics - Bristol

·         Saint-Gobain Abrasives SP.2

·         Saint-Gobain Performance Plastics (Shanghai) Company Limited

·         Saint-Gobain Abrasives Thailand

·         Saint-Gobain Performance Plastics Corby, UK

·         Saint-Gobain Abrasives Indonesia

·         Saint-Gobain Performance Plastics KK, JAPAN

·         Saint-Gobain Abrasives Netherlands B.V.

·         Saint-Gobain Performance Plastics, Les Macon, France

·         Saint-Gobain Abrasivi S.P.A.(Micromold)

·         Saint-Gobain Performance Plastics Pampus GMBH

·         Saint-Gobain Abrasivi S.P.A.(Ral-Sud)

·         Saint-Gobain Performance Plastics Verneret, France

·         Saint-Gobain Abrasivi S.P.A., Italy

·         Saint-Gobain Performance Plastics, Akron, USA

·         Saint-Gobain Abrasivos SA, Argentina

·         Saint-Gobain Performance Plastics, Beaverton. USA

·         Saint-Gobain Achats

·         Saint-Gobain Performance Plastics, Chaineux, Belgium

·         Saint-Gobain Advanced Ceramics, Niagara

·         Saint-Gobain Performance Plastics, Florida, USA

·         Saint-Gobain Advanced Materials (M) SDN BHD

·         Saint-Gobain Performance Plastics, Garden Groove, USA

·         Saint-Gobain Advanced Materials (Taiwan) Company Limited

·         Saint-Gobain Performance Plastics, Granville, USA

·         Saint-Gobain Building Distribution

·         Saint-Gobain Performance Plastics, Ireland

·         Saint-Gobain Ceramic Materials (Liyanguang) Company Limited, China

·         Saint-Gobain Performance Plastics, Kontich, Belgium

·         Saint-Gobain Ceramic Materials (Mudanjiang) Company Limited, China

·         Saint-Gobain Performance Plastics, Mickleton, USA

·         Saint-Gobain Ceramic Materials (Zhengzhou) Company Limited, China

·         Saint-Gobain Performance Plastics, New York, USA

·         Saint-Gobain Ceramic Materials, Australia

·         Saint-Gobain Performance Plastics, Pittsburg, USA

·         Saint-Gobain Ceramic Materials AS., Norway

·         Saint-Gobain Performance Plastics, Poestenkil1,USA

·         Saint-Gobain Ceramic Materials Weilerswist GMBH

·         Saint-Gobain Performance Plastics, Rencol., UK

·         Saint-Gobain Ceramic Materials, USA

·         Saint-Gobain Performance Plastics, Taiwan

·         Saint-Gobain Ceramicas lndustrialces S.A, Spain

·         Saint-Gobain Performanc'e Plastics, Gembloux, Belgium

·         Saint-Gobain Ceramicas lndustriales S.A.

·         Saint-Gobain Research India Limited

·         Saint-Gobain Ceramics and Plastics, Brazil  

·         Saint-Gobain Technical Fabrics (Changzhou) Company Limited

·         Saint-Gobain Ceramics Inc, USA

·         Weber Netservices

·         Saint-Gobain Construction Products Vietnam Limited

·         Universal Superabrasives., USA

·         Saint-Gobain Crystals and Detectors India Limited

·         Saint-Gobain Abrasives Inc., USA

·         Saint-Gobain Diamantwerkzeuge GMBH and Co

·         Societe de Participations Financieres et Industrielles

·         Saint-Gobain Distribution Denmark

·         Saint-Gobain Glass India Limited

·         Saint-Gobain Do Brasil Produtos Ind. E Para Const Ltda

·         ABC Superabrasives, USA

·         Saint-Gobain Formula Thai Gypsum Product

·         Certainteed Corporation, USA

·         Saint-Gobain Gelva, BV

·         L.M.Van Moppes Diamond Tools India Private Limited

·         Saint-Gobain Glass Egypt

·         Norton Abrasives PTY Limited

·         Saint-Gobain Gyproc India Limited

·         PT Saint-Gobain Norton Hamplas, Indonesia

·         Saint-Gobain High Performance Materials, France

·         PT Saint-Gobain Winter Diamas, Indonesia

·         Saint-Gobain HPM Polska Sp. z o.o

·         PT Saint-Gobain Abrasives Indonesia

·         Saint-Gobain Isover G+H AG

·         Placopatre Saint-Gobain ICASA S.A.

·         Point.P Development

·         Saint-Gobain Industrial Ceramics Pty Limited,

·         Saint-Gobain Ceramics and Plastics Inc.

·         Saint-Gobain Industrial Ceramics, UK

·         Saint-Gobain Abrasives, France

·         Saint-Gobain Industrie Keramik Dusseldorf GMBH

·         Saint-Gobain Abrasives, Poland

·         Saint-Gobain Materials Ceramicos Ltda. Brazil

·         Saint-Gobain Ceramiques Informatique Et Organisation

·         Saint-Gobain Materials Ceramicos, Venezuela

·         Saint-Gobain DSI Groupe

·         Saint-Gobain Materiaux Ceramics, Belgium

·         Saint-Gobain Industriekeramik Rodental GMBH

·         Saint-Gobain PAM, France

·         Saint-Gobain Abrasifs Dubai

·         Saint-Gobain Performance Plastics Portage

·         Saint-Gobain Abrasifs Maroc, Morocco

·         Saint-Gobain Performance Plastics, New Jersey, USA

·         Saint-Gobain Abrasifs, France

·         Saint-Gobain Performance Plastics, Worcester, USA

·         Saint-Gobain Abrasifs UAE

·         Saint-Gobain Performance Plastics, Taunton, USA

·         Saint-Gobain Abrasives International Trading (Shanghai)

·         Saint-Gobain PPL Corporation Mexico

·         Saint-Gobain Abrasives (Australia) PTY Limited

·         Saint-Gobain PPL Shanghai

·         Saint-Gobain Abrasives (PTY) Limited, South Africa

·         Saint-Gobain Performance Plastics, Korea

·         Saint-Gobain Abrasives (Sea) Pte. Limited

·         Saint-Gobain Produtos Industriais E Para Construcao Ltda

·         Saint-Gobain Abrasives (Shanghai) Co Limited,

·         Shanghai Saint-Gobain Sekurit India Limited

·         Saint-Gobain Abrasives (Suzhou) Company Limited

·         Saint-Gobain Sekurit (Thailand) Company, Limited

·         Saint-Gobain Abrasives BV., Netherlands

·         Saint-Gobain Seva Engineering India Limited

·         Saint-Gobain Abrasives GMBH (CORA)

·         Saint-Gobain Seva, France

·         Saint-Gobain Abrasives GMBH, Gerolzhofen., Germany

·         Saint-Gobain Tech Fab Hongfa (Changzhou) Limited

·         Saint-Gobain Abrasives International Trading (HK) Limited

·         Saint-Gobain Technical Fabrics, S.A

 

 

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

56000000

Equity Shares

Rs.5/- each

Rs.280.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

55360000

Equity Shares

Rs.5/- each

Rs.276.800 Millions

 

 

 

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

276.800

276.800

276.800

(b) Reserves & Surplus

4935.461

4381.478

3765.089

(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)

5212.261

4658.278

4041.889

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

149.832

108.005

90.778

(c) Other long term liabilities

54.447

58.097

46.412

(d) long-term provisions

149.442

151.412

155.254

Total Non-current Liabilities (3)

353.721

317.514

292.444

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

581.687

716.855

568.628

(c) Other current liabilities

915.028

1031.589

681.026

(d) Short-term provisions

464.265

453.813

397.965

Total Current Liabilities (4)

1960.980

2202.257

1647.619

 

 

 

 

TOTAL

7526.962

7178.049

5981.952

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2796.123

1904.134

1789.419

(ii) Intangible Assets

65.242

66.473

78.958

(iii) Capital work-in-progress

596.447

815.577

125.345

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

511.780

453.445

446.028

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d) Long-term Loan and Advances

170.869

286.349

112.302

(e) Other Non-current assets

0.304

32.979

17.006

Total Non-Current Assets

4140.765

3558.957

2569.058

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

80.079

(b) Inventories

1531.341

1599.944

1247.930

(c) Trade receivables

953.281

954.562

913.180

(d) Cash and cash equivalents

554.842

731.402

946.908

(e) Short-term loans and advances

227.971

254.712

163.257

(f) Other current assets

118.762

78.472

61.540

Total Current Assets

3386.197

3619.092

3412.894

 

 

 

 

TOTAL

7526.962

7178.049

5981.952

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

9450.947

9065.989

7967.338

 

 

Other Income

125.202

137.944

114.145

 

 

TOTAL                                     (A)

9576.149

9203.933

8081.483

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

3942.098

3434.070

3027.092

 

 

Purchase of Trading Goods

645.251

747.394

674.179

 

 

Employee Benefits Expenses

1042.714

948.591

843.145

 

 

Other Expenses

2498.439

2529.853

2287.098

 

 

Changes in Inventories of Finished Goods, Work in Process and Trading Goods

(121.955)

(116.220)

(172.927)

 

 

TOTAL                                     (B)

8006.547

7543.688

6658.587

 

 

 

 

 

Less

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

1560.602

1660.245

1422.896

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

5.917

3.669

2.825

 

 

 

 

 

 

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

1554.685

1656.576

1420.071

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

194.200

166.785

163.185

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

1360.485

1489.791

1256.886

 

 

 

 

 

Less

TAX                                                                  (H)

383.835

453.527

400.600

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

976.650

1036.264

856.286

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

800.000

600.000

500.000

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

355.700

418.100

370.200

 

 

Proposed Dividend

359.800

359.800

332.200

 

 

Tax on Proposed Dividend

61.200

58.400

53.900

 

BALANCE CARRIED TO THE B/S

999.950

799.964

599.986

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Exports of Goods on FOB Basis

1237.227

705.774

710.764

 

 

Freight on Exports

11.874

6.499

7.176

 

 

Insurance on Exports

0.000

0.009

0.005

 

 

Commission

5.104

1.280

1.885

 

 

Export of Services

213.370

124.375

80.468

 

 

Other Income

26.672

32.591

22.910

 

TOTAL EARNINGS

1494.247

870.528

823.208

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

2713.385

2691.356

2284.487

 

 

Stores & Spares

36.149

11.690

7.934

 

 

Capital Goods

376.009

343.734

20.216

 

 

Others

98.735

100.113

56.067

 

TOTAL IMPORTS

3224.278

3146.893

2368.704

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

17.64

18.72

15.47

 

Expected Sales (2013-14) : Rs.15000.000 Millions.

 

The above information has been parted by Mr. Abhijit Malgaonkar.

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2013

30.09.2013

Type

 

1st Quarter

2nd Quarter

Net Sales

 

2247.400

2365.000

Total Expenditure

 

1899.400

2042.200

PBIDT (Excl OI)

 

348.000

322.800

Other Income

 

25.000

38.100

Operating Profit

 

373.000

360.900

Interest

 

0.800

01.500

Exceptional Items

 

0.000

0.000

PBDT

 

372.200

359.400

Depreciation

 

58.500

64.600

Profit Before Tax

 

313.700

294.800

Tax

 

96.600

91.600

Provisions and contingencies

 

0.000

0.000

Profit After Tax

 

217.100

203.200

Extraordinary Items

 

0.000

0.000

Net Profit

 

217.100

203.200

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
10.20

11.25

10.60

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
14.40

16.43

15.77

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
21.20

25.21

23.23

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.26

0.32

0.31

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.00

0.00

0.00

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.73

1.64

2.07

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

 

 

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

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

No

18]

Major customers

No

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]

PAN of Proprietor/Partner/Director, if available

No

32]

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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

INDEX OF CHARGES:

 

S. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

90225893

03/03/1993

10,000,000.00

THE INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF
INDIA LIMITED

IDBI TOWER, COLABA, BOMBAY, MAHARASHTRA, INDIA

-

2

90225872

05/08/1993 *

4,000,000.00

THE INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF
INDIA LIMITED

163; BACKBAY RECLAMATION, BOMBAY, MAHARASHTRA, INDIA

-

3

90225543

28/08/1985

370,450.00

CORPORATION BANK

BHARAT HOUSE, BOMBAY, MAHARASHTRA, INDIA

-

4

90223747

04/04/1983

12,000,000.00

CITIBANK N.A

239; DADABHAI NAORAJI, BOMBAY, MAHARASHTRA, INDIA

-

5

90223729

25/05/1982

8,000,000.00

AMRICAN EXPRESS

INTERNATIONAL BANKING BRANCH, ORIENTAL BUILDINGS;
DR. D.N. ROAD, BOMBAY, MAHARASHTRA, INDIA

-

6

90223725

21/12/1981

5,200,000.00

AMRICAN EXPRESS INTERNATIONAL BANKING

ORIENTAL BUILDINGS, 364; D.N. ROAD, BOMBAY, MAHARASHTRA, INDIA

-

7

90223712

29/04/1981

2,500,000.00

INDUSTRIAL FINANCE CORPORATION OF INDIA

BANK OF BARODA BUILDINGS, 16; PARLIAMENT STREET,
NEW DELHI, Delhi, INDIA

-

8

90225452

27/05/1980

2,200,000.00

CITIBANK N.A

239; DR. D.N. ROAD, BOMBAY, MAHARASHTRA, INDIA

-

9

90225448

10/04/2000 *

508,100,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, VADYA MARG, BOMBAY, MAHARASHTRA, INDIA

-

10

90225398

30/07/1968

49,275.00

THE SECRETARY TO THE GOVERNMENT OF MAHARASHTRA

SACHIVALYA, BOMBAY, MAHARASHTRA, INDIA

-

 

* Date of charge modification

 

 

 

CASE DETAILS

 

BENCH: BOMBAY

 

 

LODGING NO.:   ITXAL/308/2012                                                                     FILING DATE:  17/02/2012

 

REG. NO.:          ITXA/506/2012                                                                        REG. DATE: 29/05/2012

 

PETITIONER : THE COMMISSIONER OF INCOME TAX-1

RESPONDENT :  GRINDWELL NORTON LIMITED

 

 

PENT. ADV.: SURESH KUMAR (0)

RESP. ADV.:- ATUL K. JASANI (0)

 

 

DISTRICT: MUMBAI

 

 

 

BENCH:  DIVISION

 

 

 

STATUS: PRE-ADMISSION

CATEGORY: TAX APPEALS

 

 

NEXT DATE: 07/02/2014

 

 

 

CORAM: ACCORDING TO SITTING LIST

                ACCORDING TO SITTING LIST

 

 

 

ACT: INCOME TAX ACT, 1961

UNDER SECTION: 260A

 

 

 

 

OPERATIONS:

 

The growth of the industrial sector, in general, and within that, manufacturing, in particular, witnessed a steep decline. This was the second consecutive year of low growth. Consequently, during the year, the Company’s sales increased by only 4%. Domestic sales were fat (volumes contracted by about 3%) while exports grew by about 75% (largely due to one large equipment order executed by the Company’s Project Engineering Division). Overall, the growth in sales was the lowest since 2001. Meanwhile, margins came under increasing pressure due to the rise in cost of inputs (energy and raw materials), the further depreciation of the Rupee and general inflationary conditions. While the management succeeded in increasing prices, in weak and highly competitive markets, the increase was not sufficient to maintain margins, even after considering the improvements in productivity, efficiencies and yields and cost control. Consequently, the Company’s operating profit declined by 8.5%, the first drop since 2008.

 

SUBSIDIARY IN BHUTAN
 
Operations of the Company’s subsidiary in Bhutan stabilized and achieved almost 100% capacity utilization. The processing plant project started last year was commissioned in January 2013. During the year, the company has made a further equity investment of Rs. 35 million in its subsidiary.  This capital infusion was utilized for the processing plant. In terms of general exemption provided under Section 212 (8) of the Companies Act, 1956, granted by Ministry of Corporate Affairs vide its circular no 02/2011 dated 8th February, 2011 and in compliance with the conditions enlisted therein, copies of the Balance Sheet, Statement of Profit & Loss, Report of Board of Directors and Auditors of the subsidiary have not been attached to the Balance Sheet of the Company.  However these documents will be made available upon request by any member of the Company. As directed by said circular, the financial data of the subsidiary has been furnished under Financial Information of Subsidiary Company which forms part of Annual Report. The annual accounts of the Company including that of the subsidiary will be kept for inspection by any member. Further, pursuant to Accounting Standard (AS) – 21, consolidated financial statements presented by the Company include financial information of the subsidiary company.

 

AMALGAMATION OF GROUP COMPANIES
 
At a meeting held on 19th April, 2013, the Board of Directors of the company, based on the recommendation of the Audit Committee, has approved the merger of SEPR Refractories India Ltd (SEPR), Saint-Gobain Crystals and Detectors India Ltd (SGCD) and Saint-Gobain Sekurit India Limited (SGSIL) with the Company. The appointed date for the Scheme of Amalgamation was fixed as 1st April, 2013.  The Board, after due consideration, approved the share exchange ratio as determined by the independent valuer, M/s. S.R. Batliboi & Co. LLP. The fairness opinion on the valuation was provided by ICICI Securities Ltd, a category - I merchant banker.
 
The share swap ratio for the proposed scheme has been determined as under:
 
 (i) 1 (one) Equity Share of the face value of Rs. 5/- (Rs. Five) each fully paid-up of the Company for every 17 (Seventeen) Equity Shares of the face value of Rs. 10 (Rs. Ten), each fully paid-up of SGSIL
 
 (ii) 100 (one hundred) Equity Shares of the face value of Rs. 5/- (Rs. Five) each fully paid-up of the Company for every 50 (Fifty) Equity Shares of the face value of Rs. 10/- (Rs. Ten) each, fully paid-up of SGCD
 
 (iii) 100 (one hundred) Equity Shares of the face value of Rs. 5/- (Rs. Five) each fully paid-up of the Company for every 38 (Thirty eight) Equity Shares of the face value of Rs. 10/- (Rs. Ten) each, fully paid-up of SEPR
 
The amalgamation is subject to all necessary approvals from statutory / regulatory authorities in the respective jurisdictions and subject to the sanction / conformation by the concerned High Court and / or any other appropriate authority as may be necessary.
 
FUTURE PROSPECTS:
 
 There are no signs of industrial growth recovering in the short term. It is possible that a mild recovery may commence in the later part of 2013-14, but this is far from certain. Under the circumstances, the Company’s management will focus on increasing price realization,  improving operating performance (implementation of the World Class Manufacturing programme remains a priority) and containing costs and working capital even as it continues to invest in new products and new markets in order to sustain growth.

 

 

FIXED ASSETS:

 

·         Freehold Land

·         Leasehold Land

·         Building

·         Plant and Machinery

·         Computers

·         Furniture, Fixture and Office Equipment’s

·         Vehicles

·         Computer Software

·         Goodwill

·         Technical Know-how

·         Trade Marks

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2013

 

Rs. In Millions

Sr.

No.

Particular

Quarter Ended

Half Year Ended

 

 

30.09.2013

30.06.2013

30.09.2013

 

 

Unaudited

Unaudited

Unaudited

 

 

 

 

 

1.

Net Sales/Income from Operations

2251.400

2157.800

4409.200

 

Other Operating Income

113.600

89.600

203.200

 

Total Income From Operations (Net)

2365.000

2247.400

4612.400

 

 

 

 

 

2.

Expenditure

 

 

 

 

Cost of materials consumed

968.900

815.800

1784.700

 

Purchase of stock in trade

156.600

171.300

327.900

 

Employee benefits expenses

271.000

281.100

552.100

 

Depreciation and amortization expenses

64.600

58.500

123.100

 

Power and fuel

150.000

120.700

270.700

 

Other expenses

550.100

465.000

1015.100

 

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

(54.400)

45.500

(8.900)

 

Total Expenses

2106.800

1957.900

4064.700

 

 

 

 

 

3.

Profit From Operations before Other Income, Interest and Exceptional Items (1-2)

258.200

289.500

547.700

 

 

 

 

 

4.

Other Income

38.100

25.000

63.100

 

 

 

 

 

5.

Profit Before Interest and Exceptional Items (3+4)

296.300

314.500

610.800

 

 

 

 

 

6.

Interest

1.500

0.800

2.300

 

 

 

 

 

7.

Profit After Interest but before Exceptional Items (5-6)

294.800

313.700

608.500

 

 

 

 

 

8.

Exceptional Items

--

--

--

 

 

 

 

 

9.

Profit from Ordinary Activities before Tax (7+8)

294.800

313.700

608.500

 

 

 

 

 

10.

Tax Expense

91.600

96.600

188.200

 

 

 

 

 

11.

Net Profit from Ordinary Activities after Tax (9-10)

203.200

217.100

420.300

 

 

 

 

 

12.

Extraordinary Item (net of expense)

--

--

--

 

 

 

 

 

13.

Net Profit for the period (11-12)

203.200

217.100

420.3200

 

 

 

 

 

14.

Paid-up Equity Share Capital (Face Value of Rs.10/- Each)

276.800

276.800

276.800

 

 

 

 

 

15.

Reserves Excluding Revaluation Reserve

--

--

--

 

 

 

 

 

16.

Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualized

 

 

 

 

a) Basic and diluted EPS before extraordinary items

3.67

3.92

7.759

 

b) Basic and diluted EPS after extraordinary items

3.67

3.92

7.759

 

 

 

 

 

17.

Public Shareholding

 

 

 

 

-Number of Shares

22681648

22878501

22681648

 

- Percentage of Shareholding

40.97

41.33

40.97

 

 

 

 

 

18.

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

32678352

32481499

32678352

 

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

100%

100%

100%

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

59.03

58.67

59.03

 

 

Particulars

Quartered Ended

30.09.2013

Pending at the beginning of the quarter

1

Received during the quarter

1

Disposed of during the quarter

2

Remaining unresolved at the end of the quarter

--

 

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

Rs. In Millions

Sl.

No.

 

Particulars

 

Quarter Ended

Half Year Ended

30.09.2013

30.06.2013

30.09.2013

Unaudited

Unaudited

Unaudited

1

Segment Revenue

 

 

 

 

Sale of Products

 

 

 

 

Abrasives

1649.200

1481.700

3130.900

 

Ceramics & Plastics

571.600

610.200

1181.800

 

Others

64.900

103.700

168.600

 

TOTAL

2285.700

2195.600

4481.300

 

 

 

 

 

 

Less : Inter Segment Revenue (Net of Excise)

34.300

37.800

72.100

 

 

 

 

 

 

NET SALES / INCOME FROM OPERATION

2251.400

2157.800

4409.200

 

 

 

 

 

2

Segment Results

 

 

 

 

Abrasives

211.400

196.500

407.900

 

Ceramics & Plastics

65.000

91.000

156.000

 

Others

7.200

19.300

26.500

 

TOTAL

283.600

306.800

590.400

 

 

 

 

 

 

Less :Interest

1.500

0.800

2.300

 

Less : Other Unallocable (Income)/ Expenditure (net)

(12.700)

(7.700)

(20.400)

 

Net Profit (+) / Loss(-) before Tax

294.800

313.700

608.500

 

 

 

 

 

3

Capital Employed

 

 

 

 

Abrasives

3135.900

3140.600

3135.900

 

Ceramics & Plastics

1703.000

1676.700

1703.000

 

Others

102.000

159.500

102.000

 

Unallocated

654.900

415.800

654.900

 

TOTAL

5595.800

5392.600

5595.800

 

 

BALANCE SHEET AS AT 30TH SEPTEMBER, 2013

 

Rs. In Millions

 

PARTICULARS

 

 

30.09.2013

Equity and liabilities

 

Shareholders' fund

 

Share capital

276.800

Reserve & surplus

5354.800

Sub-total - Shareholders' funds

5631.600

Non - current liabilities

 

Long term borrowings

0.000

Deferred tax liability (net)

170.800

Other long term liabilities

53.800

Long term provisions

146.200

Sub-total - Non-current liabilities

370.800

Current liabilities

 

Short term borrowings

0.000

Trade payables

564.700

Other current liabilities

1024.400

Short term provisions

95.000

Sub-total - Current liabilities

1684.100

 

 

Total - Equity & Liabilities

7686.500

 

 

Assets

 

Non-current assets

 

Fixed assets

3430.500

Capital work in progress

0.000

Non-current investment

511.800

Long term loans & advances

153.800

Other non-current assets

0.000

Sub-total - Non-current Assets

4096.100

Current assets

 

Current investments

0.000

Inventories

1689.100

Trade receivables

922.700

Cash & bank balances

550.900

Short term loans & advances

274.200

Other current assets

153.500

Sub-total - Current Assets

3590.400

 

 

Total – Assets

7686.500

 

 

 

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.40

UK Pound

1

Rs.102.54

Euro

1

Rs.85.20

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

63

 

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.