MIRA INFORM REPORT

 

 

Report Date :

17.01.2014

 

IDENTIFICATION DETAILS

 

Name :

BINANI CEMENT LIMITED (w.e.f.06.10.1998)

 

 

Formerly Known As :

BINANI CEMENT PRIVATE LIMITED (w.e.f.23.04.1998)

 

DYNASTY DEALER PRIVATE LIMITED

 

 

Registered Office :

601, Axis Mall, 6th Floor, Block – C, Action Area – I, New Town, Rajarhat, Kolkata – 700156, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

15.01.1996

 

 

Com. Reg. No.:

21-076612

 

 

Capital Investment / Paid-up Capital :

Rs.1886.038 Millions

 

 

CIN No.:

[Company Identification No.]

U26941WB1996PLC076612

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Production and Sales of Cement and Clinker.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 31000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a flagship company of Binani Group. It is a well-established company having a satisfactory track record.

 

Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen.

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

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

CARE

Rating

Commercial Paper: A2

Rating Explanation

Strong degree of safety and low credit risk.

Date

26.08.2013

 

 

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 DECLINED

 

MANAGEMENT NON – COOPERATIVE (91-33-30263000)

 

LOCATIONS

 

Registered Office :

601, Axis Mall, 6th Floor, Block – C, Action Area – I, New Town, Rajarhat, Kolkata – 700156, West Bengal, India

Tel. No.:

91-33-40161800/32562726

Fax No.:

91-33-40161812

E-Mail :

binanical@vsnl.net

atul@binani.net

Website :

http://www.binaniindustries.com

 

 

Mumbai Corporate Office:

Mercantile Chambers, 12, J.N. Heredia Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India

Tel. No.:

91-22-22690506-10/22640040-44

Fax No.:

91-22-22690003/22640045

E-Mail :

mumbai@binani.net

 

 

Factory 1 :

P. O. Binanigram, Ehsil Pindwara – 307031, District Sirohi, Rajasthan, India

Tel. No.:

91-2971-235005/12

Fax No.:

91-2971-235020

E-Mail :

bcl@binanicement.co.in

 

 

Marketing Office:

Located At

 

·         Ahmedabad

·         Jodhpur

·         New Delhi

·         Jaipur

·         Kolkata

·         Mumbai

·         Ghaziabad

 

 

Grinding Facility:

Village - Sirohi, Tehsil - Neem ka Thana, District Sikar – 332713, Rajasthan, India

Tel. No.:

91-1574-513476

Fax No.:

91-1574-517476

 

 

Factory 2:

Village : Sirohi, Taluka : Neem Ka Thana District : Sikar, Rajasthan, India

 

 

DIRECTORS

 

As on 31.03.2013

 

Name :

Mr. Braj Binani

Designation :

Chairman

 

 

Name :

Mrs. Nidhi Singhania

Designation :

Director

 

 

Name :

Mr. V. Subramanian

Designation :

Director

 

 

Name :

Mr. Ramakrishna Moogimane

Designation :

Director

 

 

Name :

Mr. P. Acharya - Wholetime Director – upto 15th July 2013

Designation :

Director

 

 

Name :

Mr. T.R.C.Nair

Designation :

Director

 

 

Name :

Miss Shradha Binani – effective 5th August, 2012

Designation :

Director

 

 

Name :

Mr. S.Sridhar – effective 5th August, 2012

Designation :

Director

 

 

Name :

Mr. R. Venkiteswaran

Designation :

Executive Director and Chief finance officer – Group Control Accounts (Nominated by Holding Company)

 

 

KEY EXECUTIVES

 

Name :

Mr. Atul P. Falgunia

Designation :

Company Secretary

 

 

Audit Committee:

·         Mr. Ramakrishna Moogimane

·         Mr. V. Subramanian

·         Mr. T.R.C. Nair

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2013

 

Names of Shareholders

No. of Shares

Percentage of Shareholding ( % )

Promoter and Promoter Group

185,649,464

98.43

Bodies Corporate

110,929

0.06

Individuals

2,747,692

1.46

Clearing Members

19,739

0.01

NRIs

68,450

0.04

Trusts

5,000

0.00

 

 

 

Total

188,601,274

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Production and Sales of Cement and Clinker.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         Bank of Baroda

·         Central Bank of India

·         Canara Bank

·         Dena Bank

·         Indian Overseas Bank

·         IDBI Bank Limited

·         Jammu and Kashmir Bank Limited

·         Oriental Bank of Commerce

·         Punjab National Bank

·         State Bank of Patiala

·         State Bank of Bikaner and Jaipur

·         Syndicate Bank

·         State Bank of India

·         Unicredit Bank AG

·         Union Bank of India

·         United Bank of India

·         Yes Bank Limited

 

 

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

From Bank

10217.321

9761.016

Financial Institutions

37.626

105.988

Short-term borrowings

 

 

From Bank

410.348

318.328

Other Loans And Advances

0.000

360.000

 

 

 

Total

10665.295

10545.332

Note:

 

LONG-TERM BORROWINGS

 

(Rs. in Millions)

Nature of Loans

Nature of Security

31.03.2013

 

31.03.2012

Financial Institutions

 

 

 

Eksport Kredit Finansiering A/S - Foreign

Currency Loans

Secured by a) Exclusive first charge on the assets imported from M/s. F.L. Smidth, Denmark under the Export Contract dated 14.09.2005 and defined clearly in the loan agreement dated 06.02.2007 entered with EKF A/s. b) Pari Passu charge on Trust and Retention account and c)

Corporate Guarantee of BIL. Loan repayable in 11 equal half yearly instalments of USD 0.686 Million commencing from June, 2009 and interest rate 1.26% p.a. (Libor+75 bps).

112.878

176.647

Banks

 

 

 

IDBI Bank Limited.

(IDBI) – Term Loans

Secured/to be secured a) first mortgage and charge created on movable and immovable properties of the Company both present and future ((a) except the assets charged Specifically b) Corporate Guarantee of BIL, except the term loan of Rs.600.000 Millions and Rs.750.000 Millions (whose outstanding as on 31st March, 2013 is Rs.150.000 Millions and Rs.750.000 Millions) and c) Pari Passu charge on Trust

and Retention Account (Except for term loan of Rs.600.000 Millions and Rs.750.000 Millions). Term Loans repayable Rs.707.101 Millions in Financial Year 2013-14, Rs.557.101 Millions in from Financial Year 2014-15 to 2015- 16, Rs.261.596 Millions for Financial Year 2016-17,   229.092 Millions for Financial Year 2017-18 and Rs.95.455 Millions for Financial Year 2018-19and Interest rate ranging from 12.50% to 14.25% per annum.

2407.446

2898.577

Syndicate Bank - Term Loan

Secured/to be secured by a) Exclusive first charge on Plant and Machinery, Equipments of 4th cement grinding unit situated at Binanigram, Pindwara, Sirohi, Rajasthan and b) pari passu first charge on the portion of land pertaining to the 4th cement grinding unit situated at Binanigram, Pindwara, Sirohi, Rajasthan. Loan repayable in 14 equal quarterly instalments of Rs.28.571 Millions commencing from December, 2011 and Interest rate 13.50% per annum.

228.570

342.856

Syndicate Bank

- Term Loan

Secured/to be secured by a) First pari passu charge on Fixed Assetsof the Company except the Assets Specifically charged b) Postdated cheques for payment of principal and interest and c) Personal Guarantee of a promoter Director. Loan repayable in 8 equal quarterly instalments of Rs.93.750 Millions commencing from June, 2015 and Interest rate @ 12.50% per annum.

750.000

750.000

Syndicate Bank - Rupee Term

Loan

Secured/to be secured by a) second charge on the Company's fixed

assets both present and future except assets specifically charged

Loan repayable in 5 yearly instalments (at the end of 1st and 2nd year

Rs.150.000 Millions each, at the end of 3rd and 4th year Rs.250.000 Millions each

and of 5th year Rs.200.000 Millions) commencing from November, 2012 and

Interest rate @ 12.50% per annum.

850.000

1000.000

UCO Bank -

Term Loan

Secured/to be secured by a) pari passu subservient hypothecation charge on the plant and machinery of the Company except assets specifically charged (see note below) b) Post dated cheques for repayment of Principal and Interest. Loan repaid in 4 equal quarterly instalments of Rs.150.000 Millions commencing from June, 2012 and Interest rate @ 12.70% per annum.

0.000

600.000

Central Bank

of India - Term

Loan

Secured/to be secured by a) pari passu subservient hypothecation charge on the movable assets of the Company except assets specifically charged (see note below). b) Post dated cheques for repayment of Principal and Interest. Loan repaid in 2 equal quarterly instalments of Rs.250.000 Millions commencing from December, 2012.

0.000

500.000

State Bank of

India - Term

Loan

Secured/to be secured by a) Second pari passu charge on Fixed Assets of the Company except assets specifically charged (see note below).

Loan repaid in 3 quarterly instalments each of Rs.300.000 Millions, Rs.350.000 Millions and Rs.350.000 Millions commencing from September, 2012.

0.000

100.000

Punjab National

Bank - Term

Loan

Secured / to be secured by pari passu subservient hypothecation charge on the Fixed Assets of the Company except assets specifically charged Loan repayable in 2 equal quarterly instalments of Rs.250.000 Millions commencing from October, 2013 and Fixed Interest rate @ 11% per

annum.

500.000

500.000

Bank of Baroda

- Term Loan

Secured/to be secured by a) Subservient charge on fixed assets of the Company both movable and immovable except assets specifically charged Loan repayable in 4 equal quarterly instalments of Rs.250.000 Millions commencing from December, 2012 and Interest rate @ 12.75%% per annum.

500.000

1000.000

Central Bank

of India - Term

Loan

Secured/to be secured by a) First pari passu charge on Fixed Assets of the Company except assets specifically charged. Loan repayable in 20 equal quarterly instalments of Rs.100.000 Millions commencing from December, 2011 and Interest rate @ 12.75% per annum.

1400.000

1800.000

Yes Bank - Term

Loan

Secured/to be secured by a) Exclusive first charge on movable and immovable properties including land of first phase of 2x22.30 MW

captive thermal power plant, comprising of 1x22.30 MW power plant, all associated equipments and shared facilities situated at Pindwara,

Sirohi, Rajasthan and all goods and equipments forming part of the plant and on other such assets. b) post dated cheques. Loan repayable in 16 equal quarterly instalments of Rs.62.500 Millions commencing from December, 2012 and Interest rate @13.10% per annum.

875.000

1000.000

Bank of Baroda

- Term Loan

Secured/to be secured by a) First pari passu charge on Fixed Assets of the Company except assets specifically charged. Loan repayable in 8 equal quarterly instalments of Rs.93.750 Millions commencing from January, 2015 and Interest rate @ 12.50% per annum.

750.000

750.000

Indian Overseas

Bank - Term

Loan

Secured/to be secured by a) First pari passu charge on Fixed Assets of the Company except assets specifically charged (see note below).

Loan repayable in 8 equal quarterly instalments of Rs.187.500 Millions commencing from June, 2015 and Interest rate @ 13% per annum.

1500.000

1500.000

Ratnakar Bank -

Term Loan

Secured/to be secured by a) Subservient hypothecation charge on the entire current assets and movable fixed assets both present and future of the Company except assets specifically charged . b) Post dated cheques for payment of principal. Loan repaid in 3 equal monthly instalments of Rs.120.000 Millions commencing from January, 2013.

0.000

360.000

Central Bank of

India - Rupee

Term Loan

Secured / to be secured by a) first pari passu charge on the fixed assets of the Company except assets specifically charged. Loan repayable in 7 yearly Instalments of Rs.70.000 Millions in 1st year, Rs.130.000 Millions in 2nd year, Rs.200.000 Millions, in each from 3rd year to 7th year, commencing from 31.03.2015 and Interest rate @ 12.75% per annum.

1200.000

0.000

Union Bank of

India - Rupee

Term Loan

Secured / to be secured by a) first pari passu charge on the fixed assets of the Company except assets specifically charged b) second charge on current assets of the Company and c) Corporate

Guarantee of Binani Industries Limited. Loan repayable Rs.29.000 Millions in Financial Year 2014-15, Rs.54.000 Millions in Financial Year 2015-16 and Rs.83.400 Millions from Financial Year 2016-17 to 2020-21 and Interest rate @ 12% per annum.

50.000

0.000

State bank of

Patiala - Term

Loan

Secured / to be secured by a) first pari passu charge on the fixed assets of the Company except assets specifically charged (see note below) .

b) second charge on current assets of the Company and c) Corporate Guarantee of Binani Industries Limited.

Loan repayable Rs.20.500 Millions in Financial Year 2014-15, Rs.38.000 Millions in Financial Year 2015-16 and Rs.58.300 Millions from Financial Year 2016-17 to 2020-21 and Interest rate @ 12.75% per annum.

250.000

0.000

Bank of Baroda

- Term Loan

Secured / to be secured by first pari passu charge on the fixed assets of the Company except assets specifically charged. Loan repayable Rs.52.500 Millions in Financial Year 2014-15, Rs.97.500 Millions in Financial Year 2015-16 and Rs.150.000 Millions from Financial Year 2016-17 to 2020-21 and Interest rate @ 11.75% per annum.

900.000

0.000

Punjab National

Bank - Term

Loan

Secured / to be secured by first pari passu charge on the fixed assets of the Company except assets specifically charged. Loan repayable in 20 quarterly instalments I.e.. 30-1-2014 and Interest rate @ 13.25% per annum.

224.555

0.000

 

 

 

 

SHORT TERM BORROWING

WORKING CAPITAL DEMAND LOANS / CASH CREDIT

From Scheduled

Banks

Secured against (a) First pari passu charge by way of hypothecation of Raw Materials, Stock in Trade, Stock-in-Process, Finished Goods, Consumables, Stores and Spares and Packing Material, Book Debts and other Receivables belonging to the Company, b) Second pari passu charge on the fixed assets of the Company c) Corporate Guarantee of BIL and (d) pari passu charge on Trust and Retention Account.

410.348

318.328

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kanu Doshi Associates

Chartered Accountants

 

 

Holding Company:

·         Binani Industries Limited

 

 

Subsidiaries / step down subsidiaries where control exists:

·         Krishna Holdings Pte Limited

·         Mukundan Holdings Limited,

·         Murari Holdings Limited

·         Swiss Merchandise Infrastructure Limited

·         Merit Plaza Limited

·         Bhumi Resources (Singapore) Pte Limited

·         Binani Ready Mix Concrete Limited

·         Binani Cement Company WLL*

·         Binani Cement Factory (SFZ) Limited*

·         BC Tradelink Limited

·         Binani Cement Factory (Kenya) Limited

·         Binani Cement (Uganda) Limited

·         Binani Cement SARL (Djibouti)*

·         Binani Cement Factory Mauritius

·         Binani Cement Company Limited (Sudan)*

·         PT Anggana Energy Resources,

·         Rightside Investments (Pty) Limited*

·         Binani Cement Company Limited (South Sudan)*

·         Trans Africa Cement Limited (Mauritius)*

·         Weightbridge Investment (Pty) Limited, Botswana*,

·         Christo Schuttle Investments Number Nine (Pty) Limited Nambia*,

·         Binani Cimentos (Mozambique) LDA*

·         Shandong Binani Rong’an Cement Company Limited (SBRCC)

·         Binani Mineral Resources (Mongolia) LLC

·         Binani Cement Factory LLC (BCF LLC)

·         Binani Energy Private Limited

·         Surya Ready Mix Private Limited.

 

 

Fellow Subsidiary:

·         Binani Zinc Limited (BZL)

·         Goa Glass Fibre Limited (GGFL)

·         BT Composites Limited (BTCL)

·         Wada Industrial Estate Limited (WIEL) and BIL Infratech Limited

·         Binani Infrastructure (Mauritius) Limited

·         BZ Minerals (Australia) Pty Limited

·         3B Binani Glass Fibre Holding S.a.r.l.

 

 

Step down Subsidiary of Binani Cement Factory LLC, Dubai. :

·         Binani Cement Company WLL

·         Binani Cement Factory (SFZ) Limited

·         BC Tradelink Limited

·         Binani Cement Factory (Kenya) Limited

·         Binani Cement (Uganda) Limited

·         Binani Cement SARL (Djibouti)

·         Binani Cement Factory Mauritius

·         Binani Cement Company Limited (Sudan)

 

 

Step-down Subsidiary of Bhumi Resources (Singapore) Pte Limited:

·         Infrastructure (Mauritius) Limited

 

 

Step-down Subsidiary of BIL Infratech Limited : Binani

 

·         PT Anggana Energy Resources

 

 

Step-down Subsidiary of BZL:

·         BZ Minerals (Australia) Pty Limited

 

Note: * These Companies were closed down during the year.

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

423899600

Equity Shares

Rs.10/- each

Rs. 4238.996 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

188601274

Equity Shares

Rs.10/- each

Rs. 1886.013 Millions

 

Add: Amount paid up on forfeited Shares

 

Rs.0.025 Million

 

 

 

 

 

Total

 

Rs. 1886.038 Millions

 

Note:

 

185,649,464 - 98.43% (Previous Year 181,686,001 - 96.33%) Equity Shares of Rs.10/- each fully paid-up held by the Holding Company –Binani Industries Limited and its nominees.

 

14,500,000 Equity Shares have been bought back in financial year 2010-2011 under tender offer route and later extinguished.

 

Reconciliation of number of shares outstanding at the beginning and at the end of the year

 

PARTICULARS

31.03.2013

 

No. of Shares

Rs. In Millions

Outstanding at the beginning of the year

188,601,274

1886.013

Less : Shares bought back

--

--

Outstanding at the end of the year

188,601,274

1886.013

 

Terms / Rights attached to equity shares

 

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares entitled to one vote per share . The Company declares and pays dividends 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.

 

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.


 

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

1886.038

1886.038

1886.038

(b) Reserves & Surplus

5875.334

4582.577

3904.198

(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)

7761.372

6468.615

5790.236

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

10398.435

11498.358

9064.662

(b) Deferred tax liabilities (Net)

1987.330

1946.300

1899.900

(c) Other long term liabilities

352.017

336.590

314.367

(d) long-term provisions

20.156

17.318

11.706

Total Non-current Liabilities (3)

12757.938

13798.566

11290.635

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

410.348

678.328

0.000

(b) Trade payables

5197.007

3758.669

2049.861

(c) Other current liabilities

7466.246

7359.274

6199.696

(d) Short-term provisions

16.988

7.841

554.984

Total Current Liabilities (4)

13090.589

11804.112

8804.541

 

 

 

 

TOTAL

33609.899

32071.293

25885.412

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

11929.461

12176.199

12534.830

(ii) Intangible Assets

39.506

20.874

23.037

(iii) Capital work-in-progress

1398.894

1171.917

453.469

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

10382.317

8463.309

5461.162

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

1690.940

2379.043

2440.827

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

25441.118

24211.342

20913.325

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1483.229

1683.379

1618.423

(c) Trade receivables

17.463

0.000

0.000

(d) Cash and cash equivalents

750.712

820.822

2304.671

(e) Short-term loans and advances

5890.409

5325.487

1013.998

(f) Other current assets

26.968

30.263

34.995

Total Current Assets

8168.781

7859.951

4972.087

 

 

 

 

TOTAL

33609.899

32071.293

25885.412

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

22169.446

20278.113

17332.397

 

 

Other Income

632.338

288.645

101.072

 

 

TOTAL                                     (A)

22801.784

20566.758

17433.469

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

2973.138

2664.494

2284.999

 

 

Purchase of stock-in-trade

188.303

23.650

0.000

 

 

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

(159.702)

88.078

104.673

 

 

Employee benefit expenses

578.654

499.692

412.680

 

 

Other expenses

14508.158

13984.826

11779.039

 

 

Exceptional Items

0.000

125.034

0.000

 

 

TOTAL                                     (B)

18088.551

17385.774

14581.391

 

 

 

 

 

Less

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

4713.233

3180.984

2852.078

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

2108.969

1614.007

1034.356

 

 

 

 

 

 

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

2604.264

1566.977

1817.722

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1054.286

1035.461

995.027

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1549.978

531.516

822.695

 

 

 

 

 

Less

TAX                                                                  (H)

351.730

47.537

(82.358)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1198.248

483.979

905.053

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

3431.200

2871.000

NA

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

43.800

76.200

NA

 

BALANCE CARRIED TO THE B/S

4673.200

3431.200

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

6.35

2.57

4.63

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

5.26

2.35

5.19

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

6.99

2.62

4.75

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

7.10

2.37

4.12

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.20

0.08

0.14

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.39

1.88

1.57

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.62

0.67

0.56

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

LITIGATION DETAILS

CALCUTTA HIGH COURT
CASE STATUS INFORMATION SYSTEM

 

Case Status     :   Pending

 

Status of          INCOME TAX APPEAL (ITA)   98        of    2012      COMMISSIONER OF INCOME TAX, CENTRAL-I   

 

                Vs.                  M/S. BINANI CEMENT LTD.

 

Pet's Adv.        :   G. S. MAKKER                   

 

Res's Adv.       :       

 

Court No.        :  19    

Last Listed On :  Monday, August 06, 2012     

  

Category           :   INCOME TAX : REVENUE

 

CONNECTED APPLICATION (S)

CONNECTED MATTER (S)

No connected application

No connected cases

 

 

Case Updated on:   Friday, August 17, 2012

 

OPERATIONS OVERVIEW

 

During the year, the Company’s performance has improved in terms of volume as well as turnover and profitability. The Company has achieved highest ever production of 5.656 Millions MT and sold 5.681 Millions MT of cement as against 5.584 Millions MT and 5.612 Millions MT respectively in the previous year. Operating Income increased from Rs.20278.100 Millions to Rs.22169.400 Millions i.e. by 9.33%, which is mainly because of higher sales volume and prices.

 

Despite higher cost of inputs and logistics, Company’s Profit after Tax improved to Rs.1198.200 Millions mainly due to higher realizations and lower fuel costs, as against Rs.484.000 Millions in the previous year.

 

Production

2012-13

2011-12

Cement (Lakhs MT)

5.656

5.584

Power Generation (net) - Lakhs kWh

352.047

328.165

 

OUTLOOK

 

The Company has chalked out plans to implement its different expansion and new projects in India and Overseas in high growth markets. These projects, upon commissioning, are expected to help the Company achieving boost in its performance on long term sustainable basis.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY OVERVIEW

 

Cement is part of the core Industry and plays a vital role in the growth and development of a nation. Presently, the industry is positioned second in world with 139 large cement plants and over 365 mini cement plants. The Indian Economy is currently witnessing its lowest GDP growth in recent years leading to sluggish demand and capacity utilization. This has impacted the Cement Industry especially in the Industrial and Infrastructure segment. However, various major steps taken by the Government in recent past to fuel the economy, may lead to a more positive impact in the later part of the year. The pressure on the bottomline will however, remain in short term due to over supply situation and increase in logistic costs.

 

COMPANY’S PERFORMANCE

 

OPERATIONS

 

Company’s growth story is continuing to move northwards, leaving behind all previous highs. During the year, Company registered Cement production of 5.656 Millions MT as against 5.584 Millions MT in the previous year. Share of blended Cement production increased from 40.27% to 49.75% in current year.

 

After subdued performance in the last year, some improvement in realisations was seen in the year 2012-13, Also, fuel costs remained under control resulting in improved bottomline. The Company registered Profit Before Tax of Rs.1550.000 Millions against Rs.531.500 Millions in the previous year.

 

In line with previous years, the Company has further reduced its dependence on Grid Power. Captive power plants generated 352.047 Millions units (net) during 2012-13 against 328.165 Millions units during 2011-12.

 

FUTURE OUTLOOK

 

Given the supply overhang, muted demand and high price volatility conditions, the Company plans to improve margins by changing its product mix by increasing share of Pozzolona Portland Cement(PPC) to Ordinary Portland Cement(OPC) and increase the volume by focusing on its primary markets where it has good brand equity. With all these steps, the Company is hopeful of fostering improved results in Financial Year 2013-14.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

From Bank

0.000

1250.000

Deferred Payment Liabilities

143.488

381.354

Total

143.488

1631.354

Note:

 

The Company has opted for Sales Tax Incentive Scheme, 1989. Earlier 25% incentive was allowed by State Level Screening Committee, but pursuant to order of Rajasthan Tax Board, 75% incentive from Sales Tax for sales effected in Rajasthan for 9 years subject to a limit of Eligible Fixed Capital Investment (EFCI) is being availed of. The Company has availed Sales Tax Incentive of Rs.2026.698 Millions upto 31st March, 2006. The Sales Tax Department filed a revision petition before the Hon’ble Rajasthan High Court, Jodhpur contesting the

order of Rajasthan Tax Board, which allowed the Company to avail 75% sales tax incentive. The Hon’ble High Court has dismissed the revision petition of Sales Tax Department. The Department has filed a revision petition before Hon’ble Supreme Court. Pending the decision of the Supreme Court, no provision has been made for the differential Sales Tax Incentive of Rs.1332.719 Millions (excluding interest, if any) availed by the Company till 31st March, 2006.

 

However, on introduction of Value Added Tax (VAT) in the State of Rajasthan w.e.f. 1st April, 2006, an option has been given to switch over to deferment scheme for twice the remaining validity period as available under the erstwhile Sales Tax Incentive Scheme, 1989 subject to the original limit of EFCI. The Company has exercised this option w.e.f. 1st April, 2006 under which 75% of VAT collected and payable after the said date is being deferred for a period of 7 years. Till 26th May, 2007, Rs.381.354 Millions was deferred and shown as Unsecured Loan.

 

The Company has paid Rs.5.911 Millions under protest during 2012-13. During the year 2007-08, the Company has filed an application with Sales Tax department for extension of period of EFCI scheme, which was not accepted. The Company has filed a case with Hon’ble Jaipur High Court to instruct the Sales Tax department to extend the EFCI scheme period. However, the Company has continued to defer 75% of the VAT liability amounting to Rs.396.709 Millions for the period 27th May, 2007 to 30th April, 2008.

 

Application for grant of sales tax incentive was filed to sanction the EFCI to the extent of Rs.3967.200 Millions, but the SLSC sanctioned Rs.2804.700 Millions in November, 2000, against which Company has requested vide letter dated 13.12.2000 to the SLSC for reviewing the amount of EFCI sanctioned, but no action was taken by the SLSC. A writ petition was filed during the year 2008-09 before the Hon’ble High Court, Jaipur bench, based on the fact that the SLSC has not replied to our review application within the time frame as per the the New Rajasthan Sales Tax Incentive Scheme, 1989 and the decision is pending for review till date, hence the Company has continued to avail the deferment benefit treated as deemed to be sanctioned. Further, the Company has made an application to the State Government / SLSC to revise the amount of EFCI from Rs.3967.200 Millions to Rs.4885.000 Millions based on applicable guidelines under the Incentive Scheme.

 

The Company has continued to avail the deferment benefit, pending the decision of State Government / SLSC.

Accordingly the tax liability for the period 30th April, 2008 to 31st August, 2011 is Rs.1774.177 Millions against which we have deposited Rs.39.921 Millions under protest as per the directions of the Hon’ble High Court and Rs.60.000 Millions has been also deposited under protest during 2012-13. The matter is pending for decision before Hon’ble Rajasthan High Court / State Government.

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10458249

11/11/2013

3,800,000,000.00

IFCI LIMITED

IFCI TOWER61 NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA

B88799119

2

10443685

28/06/2013

750,000,000.00

SYNDICATE BANK

HOMJI STREET BRANCH, 10, HOMJI STREET, 1ST FLOOR, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA

B82376021

3

10435058

27/05/2013

2,000,000,000.00

UNITED BANK OF INDIA

CORPORATE FINANCE BRANCH, 25, SIR, P.M. ROAD, 2ND FLOOR, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA

B78853470

4

10426651

08/05/2013

500,000,000.00

BANK OF INDIA

MUMBAI LARGE CORPORATE BRANCH, ORIENTAL BUILDING,
GROUND FLOOR, 364, D.N. ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA

B75462143

5

10422903

08/04/2013

750,000,000.00

 

HOMJI STREET BRANCH, 10, HOMJI STREET, 1ST FLOOR, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA

B74116013

6

10425597

25/03/2013

350,000,000.00

STATE BANK OF BIKANER AND JAIPUR

COMMERCIAL NETWORK BRANCH, 239, P. D'MELLO ROAD, OPPOSITE GPO, FORT, MUMBAI, MAHARASHTRA - 400001,
INDIA

B75094334

7

10416501

23/03/2013

350,000,000.00

STATE BANK OF PATIALA

447, THE BUREAU, R.C. MARG, CHEMBUR, MUMBAI, MAHARASHTRA - 400071, INDIA

B71913008

8

10408182

13/02/2013

500,000,000.00

UNION BANK OF INDIA

INDUSTRIAL FINANCE BRANCH,UNION BANK BHAVAN,, 1ST
FLOOR, 239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

B69685451

9

10397712

24/12/2012

1,200,000,000.00

CENTRAL BANK OF INDIA

BALLARD ESTATE BRANCH, MARSHALL BUILDING, S.V.MAR
G, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B66137696

10

10383767

11/10/2012

900,000,000.00

PUNJAB NATIONAL BANK

ILACO HOUSE, SIR P. M.ROAD, FORT, MUMBAI, MAHARA
SHTRA - 400001, INDIA

B61024972

 

* Date of charge modification

 

CONTINGENT LIABILITIES NOT PROVIDED FOR: (AS ON 31.03.2013)

 

The Company has imported fuel without payment of Customs Duty aggregating to Rs.0.677 Million (Previous Year Rs.0.677 Million) by utilizing transferable DEPB Licenses purchased from the market in the ordinary course of business. The Customs Department has issued show cause notice alleging that the original purchaser had obtained these licenses fraudulently. The above case is pending with Commissioner of Customs, Kandla. Company is hopeful of success as the Company is not at fault.

 

Demands raised by Excise Department in various matters aggregating to Rs.3.600 Millions (Previous Year Rs.3.150 Millions) - against this they have deposited Rs.0.628 Millions under protest (Previous Year Rs.Nil). Appeals are pending with various Appellate Authorities.

 

Demands raised by Customs Department, Jamnagar in relation to import of coal made in earlier years aggregating to Rs.3.061 Millions (Previous Year Rs.3.061 Millions). The Company has filed Appeals before CESTAT, Mumbai. CESTAT Mumbai has set aside the order of the Appellate Commissioner with a direction that the appeal by the department against the Assistant Commissioner’s orders should be heard denovo on merits by the Commissioner (Appeals). Now Department has filed an appeal before the Hon’ble High Court of Gujarat against the order of CESTAT.

 

Demands raised by Excise Department in various matters in relation to payment of Service Tax / Cenvat Credit of Service Tax Rs.5.872 Millions (Previous Year Rs.5.975 Millions). Appeals are pending with various Appellate Authorities. They have reversed cenvat credit/ paid Rs.2.478 Millions (Previous Year Rs.0.108 Million) under protest.

 

Commissioner, Central Excise, Jaipur II issued a show cause notice disputing basis of Excise Duty calculated for sales made to contractual buyers. They have paid duty accordingly before issuing of show cause notice. However Commissioner imposed penalty of Rs.0.100 Million (Previous Year Rs.0.100 Million) which is disputed by us on the ground that they have paid duty before issuing show cause notice, and an appeal has been filed before CESTAT and stay granted against recovery of penalty till disposal of appeal.

 

Demands raised by Additional Commissioner Central Excise, Jaipur II in relation to Cenvat Credit of Excise Duty paid on Capital goods falling under Chapter 72, 73, 59, 69, 39 and 83 amounting to Rs.3.470 Millions (Previous Year Rs.3.470 Millions). The Company filed an appeal before Commissioner (Appeals), Jaipur II and same was rejected. Thereafter Company filed an appeal with CESTAT New Delhi and CESTAT has set aside the order and matter has been remanded back to the adjudicating authority to deal with the matter afresh in accordance with the provisions in law.

 

Demands confirmed by Commissioner Central Excise, Jaipur II in relation to Cenvat Credit of Excise Duty paid on Capital goods falling under Chapter 72, 73, 59, 69, 39 and 83 amounting to Rs.13.855 Millions (Previous Year Rs.Nil). They are filing an appeal before CESTAT, New Delhi.

 

Demands confirmed by Commissioner Central Excise, Jaipur II in relation to Cenvat Credit of Excise Duty paid on Capital goods falling under various Chapters amounting to Rs.0.138 Million (Previous Year Rs.Nil). the Company filed an appeal before CESTAT, New Delhi and stay granted.

r

Demand raised for difference in duty amounting to Rs.0.052 Million (Previous Year Rs.Nil) between duty payable at MRP based assessable value and duty paid on transaction value in relation to sales made to Industrial buyer which was subsequently resold by them. They have already deposited differential duty demand alongwith interest before issue of show cause notice. However Commissioner has reviewed the order for imposition of penalty and in view of this the department has filed an appeal before Commissioner (Appeals) Jaipur II.

 

Demands raised by Additional Commissioner Central Excise, Jaipur I in relation to Cenvat Credit of Excise Duty paid on Capital goods falling under various Chapters amounting to Rs.0.655 Million (Previous Year Rs.Nil). The Company filed an appeal before Commissioner (Appeals) Jaipur I.

 

Demands raised for differential Custom duty by Customs Department, Jamnagar in relation to Bill of entry no. F-176 date 06.02.2009 of 24104 MT for Indonesian coal imported in 2009-10, aggregating to Rs.4.216 Millions (Previous Year Rs.4.216 Millions), on the ground of valuation of coal taking C and F value of coal @ $ 154.34 PMT instead of $ 86 PMT on which we have paid the customs duty i.e. the price finally agreed by the supplier as the coal supplied by the supplier was of inferior quality. The Company filed appeal before the Commissioner of Customs (Appeals), Jamnagar but the same has been rejected. The Company has filed an appeal before CESTAT, Ahmedabad against the order of the Commissioner of Customs (Appeals), Jamnagar and stay granted.

 

Demands raised by Sales Tax Department aggregating to Rs.7.021 Millions (Previous Year Rs.7.021 Millions) contending that the Company has wrongly adjusted sales tax on account of trade discounts. The Company has filed a writ petition before Hon’ble High Court, Jodhpur and has also obtained an interim relief. Besides this, the Sales Tax department has also issued demand notices relating to various matters aggregating to Rs.0.050 Million (Previous Year Rs.0.050 Million), which are being contested by the Company, including in appeal and is hopeful of success.

 

Demands raised by U P Commercial Tax Department on account of entry tax on Cement for the year 2003 to 2009 aggregating to Rs.27.066 Millions (Previous Year Rs.16.936 Millions), based on market price which was disputed by the Company before various appellate authorities on the ground that the Entry Tax is payable on stock transfer price. The Company has paid Rs.3.629 Millions (Previous Year Rs.3.629 Millions) under protest.

 

Demand assessed by Uttar Pradesh Commercial Taxes Department on account of entry tax Rs.26.390 Millions for the period 2009-10 (Previous Year Rs.26.801 Millions), based upon the market value of cement stock transfer. The Case is pending before Hon’ble Supreme Court. Against the demand they have deposited Rs.15.867 Millions based upon stock transfer price and balance demand of Rs.10.523 Millions recovered through encashment of Bank Gurantee has been paid under protest. Also department has raised demand of Rs.3.678 Millions towards Interest against which they have paid Rs.2.046 Millions under protest and balance Interest demand is stayed.

 

Demand raised by Uttar Pradesh Commercial Taxes Department on account of penalty on late deposit of VAT amounting to Rs.2.160 Millions (Previous Year Rs.2.160 Millions). Appeal filed before Commercial Taxes Tribunal, Ghaziabad against the order of Additional Commissioner (Appeals), Commercial Taxes, Ghaziabad. They have deposited Rs.1.296 Millions (Previous Year Rs.1.296 Millions) under protest. 

 

Joint Commissioner Commercial Taxes, Ghaziabad has imposed penalty of Rs.0.132 Million (Previous Year Rs.0.132 Million) on account of incomplete documents carried by Truck of Cement. They have deposited Rs.0.132 Million (Previous Year Rs.0.132 Million) under protest and filed an appeal before Additional Commissioner (Appeals), Commercial Taxes, Ghaziabad.

 

The Joint commissioner (Corporate Circle), UP Commercial Taxes, Ghaziabad has passed the Assessment order for the year 2008-09 and 2009-10 and raised additional demand of Rs.0.809 Million. The case for the year 2008-09 is pending before Additional Commissioner (Appeal), Commercial Taxes Ghaziabad. Against demand of Rs.0.488 Million for the year 2008-09 Rs.0.159 Million deposited under protest and stay granted for Rs.0.244 Million. For the year 2009-10 they are in process of filling an appeal before Additional Commissioner (Appeal), Commercial Taxes Ghaziabad.

 

Letters of Credit opened by banks on behalf of the Company Rs.23.364 Millions (Previous Year Rs.18.300 Millions).

 

Guarantees given by Banks Rs.39.001 Millions (Previous Year Rs.37.190 Millions).

 

Corporate Guarantees given to Banks in respect of loans to subsidiaries, step down subsidiaries, holding company and its other subsidiaries / step down subsidiaries Rs.22122.655 Millions (Previous Year Rs.20885.928 Millions).

 

Claims against the Company in respect of certain Income Tax matters Rs.207.563 Millions (Previous Year Rs.114.786 Millions) out of which Rs.86.331 Millions has been paid by the Company or adjustable by the department against the refund due to the Company.

 

The Company has placed a purchase order for procurement of “Steam (Non Coking) coal and M/s Visa Comtrade A.G. supplied the same under five Bills of lading. Party failed to provide us the original bills of lading. The owner of the Ship M/s Great Eastern Shipping Company Limited. has filed the suit against the Company for providing original Bills of lading. They have informed to that the balance amount due to them will be paid after adjustment of the losses and expenditure incurred / to be incurred by Binani Cement Limited till the time matter is finally resolved. The Company have incurred expenses of Rs.74.073 Millions up to 31.03.2013 (upto Previous Year Rs.50.379 Millions) to defend the suit filed by M/s Great Eastern Shipping Company Limited. and debited the same to the account of supplier as to be recovered from the party.

 

Under the Rajasthan Finance Act, 2006, the Assessing Authority has assessed land tax on leasehold land for the year 2006-07 to 2011-12 and raised demand notices for Rs.170.140 Millions. The matter was challenged by the Company in Hon’ble Rajasthan High Court, Jaipur. Hon’ble High Court has granted stay on demand notices and ordered to deposit certain amount in respect of each year. The Company has already deposited Rs.4.800 Millions in advance for the year 2006-07. In the current year 2012-13, Rs.15.000 Millions as been deposited towards the demands for the year 2007-08 to 2011-12 in compliance of the orders of Hon’ble High Court. The matter is already protested and is subjudice.

 

FIXED ASSETS

 

Tangible Assets

 

·         Freehold Land

·         Leasehold Land

·         Building

·         Plant and Machinery

·         Railway Sidings

·         Mine Exploration and Developments

·         Furniture and Fixtures

·         Vehicles

·         Office and Other Equipments

 

Intangible Assets

 

·         Computer Software


 

CMT REPORT (Corruption, Money Laundering and 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.61.53

UK Pound

1

Rs.100.73

Euro

1

Rs.83.84

 

 

INFORMATION DETAILS

 

Information Gathered by :

JML

 

 

Report Prepared by :

KVT

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

4

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

50

 

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

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NB

                                       New Business

 

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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.