MIRA
INFORM REPORT
|
Report Date : |
31.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
SAGAR CEMENTS LIMITED |
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Registered
Office : |
Plot No.111, Road No.10, Jubilee Hills, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
15.01.1981 |
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Com. Reg. No.: |
01-002887 |
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Capital
Investment / Paid-up Capital : |
Rs.173.880
Millions |
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CIN No.: [Company Identification
No.] |
L26942TG1981PLC002887 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDS00253B |
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PAN No.: [Permanent Account No.] |
AACCS8680H |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer and Seller of Cement and Clinker. |
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No. of Employees
: |
430 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (34) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. The rating is constrained on account of company’s moderate financial
performance marked by sharp dip in profitability of the company during
financial year 2013 and cyclical nature of end user industry with intense
competition from other players. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealing with some caution. |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
NEWS
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the share goes up further in the
coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes that many things such as apartment
sales, luxury products, etc. were largely bought with dirty money. And it is
now beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 %! Equities came in second with annualized
return of 15.5 %! However, while these returns may seem mouthwatering, the fact
is that the return from equities adjusted for inflation came down to just 7.1
%.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs.10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities: BB+ |
|
Rating Explanation |
Inadequate degree of safety and high credit
risk. |
|
Date |
April 15, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank facilities: A4+ |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
April 15, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. K P Parsad |
|
Designation : |
AVP Finance |
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Contact No.: |
91-40-23351571 |
|
Date : |
30.07.2014 |
LOCATIONS
|
Registered/
Administrative Office : |
Plot No.111, Road No.10, Jubilee Hills, Hyderabad – 500033, Telangana, India |
|
Tel. No.: |
91-40-23351571/ 23356572 |
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Fax No.: |
91-40-23356573 |
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E-Mail : |
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Website : |
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Factory 1 : |
Mattampally, Via Huzurnagar, Nalgonda District – 508204, Andhra
Pradesh, India |
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Tel. No.: |
91-8683-247039 |
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Factory 2 : |
Pedaveedu, Via Huzurnagar, Nalgonda District – 508204,
Andhra Pradesh, India |
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Tel. No.: |
91-8683-216533/ 247333 |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. O. Swaminatha Reddy |
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Designation : |
Chairman - Independent and Non-Executive |
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Qualification : |
Charted account and Financial Management |
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Name : |
Mr. S. Veera Reddy |
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Designation : |
Managing Director |
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Date of
Appointment : |
13.07.1991 |
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Name : |
Dr. S. Anand Reddy |
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Designation : |
Joint Managing Director |
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Date of
Birth/Age : |
10.06.1964 |
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Qualification : |
M.B.B.S. |
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Experience
in specific functional areas : |
Marketing and Project Management |
|
Date of
Appointment : |
21.11.1992 |
|
Directorships
in other companies : |
·
Sagar Power Limited ·
Sagar Priya Housing and Industrial Enterprises
Limited ·
Panchavati Polyfibres Limited ·
Vicat Sagar Cement Private Limited ·
Super Hydro Electric Private Limited ·
SPL Renewable Energy Private Limited |
|
|
|
|
Name : |
Mr. S. Sreekanth Reddy |
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Designation : |
Executive Director |
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Date of
Birth/Age : |
27.08.1971 |
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Qualification : |
B.E. (I & P) and PG Diploma in cement technology |
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Experience
in specific functional areas : |
Cement Technologist |
|
Date of
Appointment : |
26.06.2003 |
|
Directorships
in other companies : |
·
Sagarsoft (India) Limited ·
Sagar Power Limited ·
Sagar Priya Housing and Industrial Enterprises
Limited ·
Vicat Sagar Cement Private Limited ·
Gulbarga Power Private Limited ·
Super Hydro Electric Private Limited ·
SPL Renewable Energy Private Limited ·
Sree Venkateswara Winery and Distillery Private
Limited |
|
|
|
|
Name : |
Mr. K. Thanu Pillai |
|
Designation : |
Independent and Non-Executive Director |
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Qualification : |
MBA and CAIIB |
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|
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Name : |
Mr. Glibert Noel Claude Natta |
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Designation : |
Non-Executive Director |
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Date of
Birth/Age : |
24.12.1948 |
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Qualification : |
ESSEC Paris |
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Experience
in specific functional areas : |
Banking and Finance |
|
Directorships
in other companies : |
·
Sinai Cement CY, Egypt ·
Konya Cemento, Turkey ·
Bastas Baskent CiM, Turkey |
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Name : |
Mr. Werner C.R. Poot |
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Designation : |
Non-Executive Director (up to 28.09.2012) |
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Name : |
Mr. John-Eric Fernand Pascal Cesar Bertrand |
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Designation : |
Non-Executive Director (w.e.f.17.10.2012) |
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Name : |
Mr. K. Rajendra Prasad |
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Designation : |
APIDC Nominee Director |
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Name : |
Mr. G. Suneel Babu |
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Designation : |
IDBI Nominee and Independent Director (w.e.f 29.04.2011) |
KEY EXECUTIVES
|
Name : |
Mr. R. Soundararajan |
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Designation : |
Company Secretary |
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|
Name : |
Mr. K P Parsad |
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Designation : |
AVP Finance |
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Senior Management Team: |
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Corporate
Office: |
|
Name : |
Mr. M.S.A. Narayana Rao |
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Designation : |
Group President |
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Name : |
Mr. M.V. Subba Rao |
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Designation : |
Senior Vice President |
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Name : |
Mr. K. Ganesh |
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Designation : |
Vice President Project |
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Name : |
Mr. P.S. Prasad |
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Designation : |
Vice President - Marketing |
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Name : |
Mr. O. Anji Reddy |
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Designation : |
Chief General Manager (Electrical and Installations) |
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Name : |
Mr. K.V. Ramana |
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Designation : |
Chief General Manager - Mines |
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Name : |
Mr. K. Prasad |
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Designation : |
General Manager (Finance) |
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Sites: |
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Name : |
Mr. P. Vasudeva Reddy |
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Designation : |
Vice President (Works) |
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Name : |
Mr. M.V. Ramana Murthy |
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Designation : |
General Manager (Finance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2014)
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
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|
8690514 |
49.98 |
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|
344785 |
1.98 |
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|
9035299 |
51.96 |
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Total shareholding of
Promoter and Promoter Group (A) |
9035299 |
51.96 |
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(B) Public Shareholding |
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|
|
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|
1302183 |
7.49 |
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|
4050 |
0.02 |
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|
1306233 |
7.51 |
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|
|
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|
4511163 |
25.94 |
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|
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|
1294323 |
7.44 |
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|
194847 |
1.12 |
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|
|
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|
|
1046149 |
6.02 |
|
|
1000000 |
5.75 |
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|
26712 |
0.15 |
|
|
775 |
0.00 |
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|
18662 |
0.11 |
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|
7046482 |
40.52 |
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Total Public shareholding
(B) |
8352715 |
48.04 |
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Total (A)+(B) |
17388014 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
|
|
Total (A)+(B)+(C) |
17388014 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Cement and Clinker. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
430 (Approximately) |
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Bankers : |
·
State Bank of ·
State Bank of ·
IDBI Bank Limited |
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Facilities : |
NOTES: (AS ON
31.03.2013) LONG-TERM
BORROWING 1. Term Loan of
Rs.1000.000 millions was taken from IDBI Bank during the year 2008-09 and it
is repayable in 60 monthly installments of Rs.16.700 millions each. The loan carries
an interest at 175 bps below the Bench Mark Prime Lending rate and is payable
at monthly rests. As of 31.03.2013, out of 60 installments, 51 installments
were paid and 9 installments are to be paid. Rate of interest as on
31.03.2013 is 13.50% (31.03.2012: 14%). The term loan is
secured by a pari-passu charge on the fixed assets i.e. Land, Buildings,
Plant and Machinery, Mining Equipment owned by or belonging to the company
both present and future, and by a second charge on the current assets of the company
and are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand
Reddy, Joint Managing Director and Shri S. Sreekanth Reddy, Executive
Director. 2. Term Loan of
Rs.450.000 millions was taken from State Bank of India during the year 2008-09
and it is repayable in 60 monthly installments of Rs.7.500 millions each. The
loan carries an interest at 0.50% below State Bank Advance Rate and is
payable at monthly rests. As of 31.03.2013 out of 60 installments, 51
installments were paid and 9 installments are to be paid. Rate of interest as
on 31.03.2013 is 14.15% (31.03.2012: 14.75%). The term loan is secured by a
pari-passu charge on the fixed assets i.e. Land, Buildings, Plant and
Machinery, Mining Equipment owned by or belonging to the company both present
and future, and by a second charge on the current assets of the company and
are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand Reddy,
Joint Managing Director and Shri S. Sreekanth Reddy, Executive Director. 3. Term Loan of Rs.500.000
millions was taken from State Bank of Hyderabad during the year 2008-09 and
it is repayable in 60 monthly installments of Rs.8.330 millions each. The
loan carried an interest at 75 base points below the prime lending rate of
the Bank and is payable at monthly rests. As of 31.03.2013, out of total 60
installments, 51 installments were paid and 9 installments are to be paid.
Rate of interest as on 31.03.2013 is 14.25% (31.03.2012: 14.25%). The term
loan is secured by a pari-passu charge on the fixed assets i.e. Land,
Buildings, Plant and Machinery, Mining Equipment owned by or belonging to the
company both present and future, and by a second charge on the current assets
of the company and are guaranteed by Shri S. Veera Reddy, Managing Director,
Dr. S. Anand Reddy, Joint Managing Director and Shri S. Sreekanth Reddy,
Executive Director. 4. Term Loan of
Rs.450.000 millions was taken from State Bank of Hyderabad during the year
2010-11 and it is repayable in 60 monthly installments from December, 2010.
As of 31.03.2012 out of 60 installments, 28 Installments were paid and 32
installments are to be paid every month at Rs.10.000 millions for first 24
installments, Rs.15.000 millions for next 7 installments and the last
installment at Rs.12.500 millions. The interest was fixed at 4.25% above
Basic Rate of interest. Rate of interest as on 31.03.2013 is 14.75%
(31.03.2012: 13.25%). The term loan is secured by a pari passu charge on the
fixed assets i.e. Land, Buildings, Plant and Machinery, Mining Equipment owned
by or belonging to the company both present and future, and by a second
charge on the current assets of the company and are guaranteed by Shri S.
Veera Reddy, Managing Director, Dr. S. Anand Reddy, Joint Managing Director
and Shri S. Sreekanth Reddy, Executive Director. 5. Term Loan of
Rs.50.000 millions was taken from Andhra Pradesh State Financial Corporation
during the year 2010-11 and it is repayable in 55 monthly installments of
Rs.0.910 million each. As of 31.03.2013 out of 55 installments, 23 installments
were paid and 32 installments are to be paid. The interest was fixed at 3%
below Bench Mark Prime Lending rate of interest. Rate of interest as on
31.03.2013 is 13% (31.03.2012: 13.00%). The term loan is
secured by a pari-passu charge on the fixed assets i.e. Land, Buildings,
Plant and Machinery, Mining Equipment owned by or belonging to the company
both present and future, and by a second charge on the current assets of the
company and are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S.
Anand Reddy, Joint Managing Director and Shri S. Sreekanth Reddy, Executive
Director. 6. Term Loan of
Rs.200.000 millions was taken from L & T Finance Limited, during the year
2012-13 and it is repayable in 31 monthly installments from June, 2013. The
interest was fixed at 4.25% above Basic Rate of interest. Present rate of
interest as on 31.03.2013 is 13.00%. The term loan is secured by a second
pari-passu charge on the fixed assets i.e., Land, Buildings, Plant and
Machinery, Mining Equipment owned by or belonging to the company both present
and future, and by a second charge on the current assets of the company and
are guaranteed by Dr. S. Anand Reddy, Joint Managing Director and Shri S.
Sreekanth Reddy, Executive Director. 7. L & T
Infrastructure Finance Company Limited, has sanctioned a Term Loan for
Railway Siding Project for an amount of Rs.980.000 millions during the
financial year 2012-13 and the company has drawn an amount of Rs.300.000
millions up to 31.03.2013. The principle loan amount would be repayable in 27
quarterly installments from June, 2015 onwards. The loan was sanctioned
carries an interest at 175 bps below Bench Mark Prime Lending rate and is
payable at monthly rests. Present rate of interest as on 31.03.2013 is at
13.00%. The term loan is secured by a pari-passu charge on the fixed assets
i.e., Land, Buildings, Plant and Machinery, Mining Equipment owned by or
belonging to the company both present and future, and by a second charge on
the current assets of the company. 8. Term Loan of
Rs.250.000 millions was taken from State Bank of India, during the year
2012-13 and it is repayable in 60 monthly installments starting from
September, 2013 onwards. The repayment pattern would be Rs.2.500 millions
each for first 28 installments and Rs.5.600 millions for the next 31
installments and Rs.6.400 millions for the final installment. The interest
was fixed at 4.25% above Basic Rate of interest. Present rate of interest as
on 31.03.2013 is 13.00%. The term loan from State Bank of India is secured by
a pari-passu charge on the fixed assets i.e. Land, Buildings, Plant and
Machinery, Mining Equipment owned by or belonging to the company both present
and future, and by a second charge on the current assets of the company and
are guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand Reddy,
Joint Managing Director and Shri S. Sreekanth Reddy, Executive Director. 9. Vehicle Loans
from various Banks / Financial Institutions were secured by the Hypothecation
of Specific assets purchased from those loans and further secured by personal
guarantees of Dr. S. Anand Reddy, Joint Managing Director and Shri S.
Sreekanth Reddy Executive Director. SHORT-TERM
BORROWINGS: Cash credit Loans from Banks are secured against Stocks of Raw
materials, Finished goods and Trade Receivables, Stores and Spares, present
and future, and by second charge on fixed assets of the company and are
guaranteed by Shri S. Veera Reddy, Managing Director, Dr. S. Anand Reddy,
Joint Managing Director and Shri S. Sreekanth Reddy, Executive Director. The
cash credit is repayable on demand and carries interest @ 9.80% to 14.5%. |
|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P. Srinivasan and Company Chartered Accountants |
|
Address : |
H.No.12-13-422, Street No.1, Lane Opposite Bank of Baroda, Tarnaka,
Secunderabad – 500017, Andhra Pradesh, India |
|
Tel No.: |
91-40-65534105 |
|
Fax No.: |
91-40-27014948 |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Narasimha Murthy and Company Chartered Accountants |
|
Address : |
104, Pavani Estate, Y. V. Rao Mansion, Himayathnagar, Hyderabad –
500029, Andhra Pradesh, India |
|
|
|
|
Associates : |
· Vicat Sagar Cement Private Limited, India |
|
|
|
|
Enterprise
where key managerial personnel along with their relatives exercise
significant influence : |
·
Panchavati Polyfibres Limited ·
Sagar Power Limited ·
RV Consulting Services Private Limited ·
Sagar Priya Housing and Industrial Enterprises
Limited ·
Sagarsoft (India) Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2014)
Authorised Capital: NOT AVAILABLE
Issued, Subscribed & Paid-up Capital: RS.173.880 MILLIONS
(AS ON 31.03.2013)
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
|
2000000 |
Preference Shares |
Rs.10/- each |
Rs.20.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.220.000
millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17388014 |
Equity Shares |
Rs.10/- each |
Rs.173.880
millions |
|
|
|
|
|
Reconciliation of
shares outstanding at the beginning and at the end of the reporting period
|
Equity
Shares |
As at 31st March, 2013 |
|
|
No. of Shares |
Amount (Rs. in
millions) |
|
|
At the beginning of the period |
17388014 |
173.880 |
|
No. of shares Issued during the period |
0 |
0 |
|
Outstanding at the end of the period |
17388014 |
173.880 |
1. The Company has
only one class of equity shares having a par value of Rs.10 per share. Each
holder of Equity shares is entitled to one vote per share. The company declares
and pays dividends in Indian rupees. The dividend, if and when proposed by the Board
of Directors is subject to the approval of the shareholders.
2. For the year
ended 31st March 2013, the amount of per share dividend recognized
as distribution to equity shareholders is Re.1/-.
3. In the event of
liquidation of the company, the holders of equity shares will be entitled to
receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
Details of
Shareholders holding more than 5% shares in the company
|
Shareholder's Name |
As at 31st March, 2013 |
|
|
No. of Shares |
% of holding |
|
|
S. Veera Reddy |
1643795 |
9.45 |
|
S. Aruna |
1369545 |
7.88 |
|
S. Rachana |
1153230 |
6.63 |
|
S. Anand Reddy |
1142312 |
6.57 |
|
S. Sreekanth Reddy |
1085757 |
6.24 |
|
S. Vanajatha |
990769 |
5.70 |
|
AVH Resources Limited |
2727032 |
15.68 |
|
Twinvest Financial Services Limited |
1142985 |
6.57 |
|
Parficim S.A.S (A Subsidiary of Vicat S.A.) |
1000000 |
5.75 |
As per of the
company, including its register of shareholders/members and other declarations
received from shareholders regarding beneficial interest, the above
shareholding represents both legal and beneficial ownerships of shares.
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
173.880 |
173.880 |
173.880 |
|
(b) Reserves & Surplus |
2234.774 |
2490.585 |
2423.130 |
|
(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) |
2408.654 |
2664.465 |
2597.010 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
1113.542 |
1026.492 |
798.282 |
|
(b) Deferred tax liabilities (Net) |
322.418 |
445.834 |
446.056 |
|
(c) Other long
term liabilities |
599.897 |
459.354 |
228.897 |
|
(d) Long-term
provisions |
186.182 |
10.123 |
12.324 |
|
Total Non-current
Liabilities (3) |
2222.039 |
1941.803 |
1485.559 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
664.422 |
685.899 |
777.127 |
|
(b)
Trade payables |
354.623 |
536.094 |
640.729 |
|
(c)
Other current liabilities |
1005.979 |
1046.512 |
928.305 |
|
(d) Short-term
provisions |
17.734 |
52.679 |
198.989 |
|
Total Current
Liabilities (4) |
2042.758 |
2321.184 |
2545.150 |
|
|
|
|
|
|
TOTAL |
6673.451 |
6927.452 |
6627.719 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
3351.105 |
3405.723 |
3433.657 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
400.727 |
215.411 |
68.706 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
860.265 |
860.265 |
860.265 |
|
(c) Deferred tax assets (net) |
0.00 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
459.867 |
227.068 |
235.737 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
5071.964 |
4708.467 |
4598.365 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
417.754 |
652.209 |
856.892 |
|
(c)
Trade receivables |
484.841 |
532.955 |
484.482 |
|
(d) Cash
and cash equivalents |
45.704 |
246.008 |
27.200 |
|
(e)
Short-term loans and advances |
262.895 |
411.619 |
439.851 |
|
(f)
Other current assets |
390.293 |
376.194 |
220.929 |
|
Total Current
Assets |
1601.487 |
2218.985 |
2029.354 |
|
|
|
|
|
|
TOTAL |
6673.451 |
6927.452 |
6627.719 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations (Net) |
4889.383 |
5585.155 |
5948.272 |
|
|
|
Other Income |
178.162 |
260.295 |
120.002 |
|
|
|
TOTAL (A) |
5067.545 |
5845.450 |
6068.274 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
522.812 |
534.520 |
540.225 |
|
|
|
Changes in Inventories of Finished Goods and Work-in-Progress |
12.728 |
61.425 |
130.102 |
|
|
|
Manufacturing expenses |
0.000 |
2657.029 |
2324.108 |
|
|
|
Employee Benefit Expenses |
253.127 |
230.340 |
265.599 |
|
|
|
Other Expenses |
4087.584 |
1679.921 |
1561.330 |
|
|
|
TOTAL (B) |
4876.251 |
5163.235 |
4821.364 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
191.294 |
682.215 |
1246.910 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
295.474 |
305.538 |
341.813 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(104.180) |
376.677 |
905.097 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
269.340 |
267.439 |
258.962 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(373.520) |
109.238 |
646.135 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(117.709) |
21.440 |
204.971 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(255.811) |
87.798 |
441.164 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
1009.485 |
828.949 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
NA |
0.000 |
200.000 |
|
|
|
Proposed Dividend on Equity Shares |
NA |
17.388 |
52.164 |
|
|
|
Tax on Dividend Proposed |
NA |
2.955 |
8.464 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
1076.940 |
1009.485 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components, Spare parts, Capital Items and
Others |
NA |
58.811 |
6.690 |
|
|
TOTAL IMPORTS |
NA |
58.811 |
6.690 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
(14.71) |
5.05 |
25.37 |
|
|
|
- Diluted |
(14.71) |
5.05 |
25.37 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(5.05) |
1.50 |
7.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(7.64) |
1.96 |
10.86 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.90) |
1.87 |
11.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.16) |
0.04 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.74 |
0.64 |
0.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.78 |
0.96 |
0.80 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
173.880 |
173.880 |
173.880 |
|
Reserves & Surplus |
2423.130 |
2490.585 |
2234.774 |
|
Net worth |
2597.010 |
2664.465 |
2408.654 |
|
|
|
|
|
|
long-term borrowings |
798.282 |
1026.492 |
1113.542 |
|
Short term borrowings |
777.127 |
685.899 |
664.422 |
|
Total borrowings |
1575.409 |
1712.391 |
1777.964 |
|
Debt/Equity ratio |
0.607 |
0.643 |
0.738 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
5,948.272 |
5,585.155 |
4,889.383 |
|
|
|
(6.105) |
(12.458) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
5,948.272 |
5,585.155 |
4,889.383 |
|
Profit |
441.164 |
87.798 |
(255.811) |
|
|
7.42% |
1.57% |
(5.23%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes/ No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
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 |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOANS
|
Particulars |
31.03.2014 (Rs. in Millions) |
31.03.2013 (Rs. in Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Other Loans and Advances |
|
|
|
Sales Tax Deferment |
NA |
50.061 |
|
|
|
|
|
Total |
NA |
50.061 |
COMPANY'S
PERFORMANCE
The year 2012-13
saw the continuance of the slowdown in the construction sector observed in the
previous year, keeping the demand for cement at a low level especially in
Andhra Pradesh, which is a major market for the company.
Despite this,
subject was able to maintain its sales volume, though at a marginally lower
level than that of the previous year. Average net sales realization per ton of
cement was lower by 6% as compared to the previous year.
Rising cost of all
inputs remained a concern for the company particularly in the context of lower
demand which offers little scope for better price realization to offset the
increase in the input costs.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2014 (Rs. in millions) |
31.03.2013 (Rs. in millions) |
31.03.2012 (Rs. in millions) |
|||
|
Disputed Amount |
Paid Under Protest |
Disputed Amount |
Paid Under Protest |
Disputed Amount |
Paid Under Protest |
|
|
APTRANSCO Voltage surcharge and grid supporting charges (Note 1) |
NA |
NA |
17.350 |
10.800 |
17.350 |
10.800 |
|
Demand by Sales tax authorities year 2009-10-Sale of Fixed Assets (Note 2) |
NA |
NA |
10.940 |
2.740 |
10.940 |
2.740 |
|
Demand by Sales Tax authorities year 1999-2000-Interest on delayed payment (Note 3) |
NA |
NA |
1.960 |
0.490 |
1.960 |
0.490 |
|
Demand by Income tax Department Assessment year 2006-07 disallowances (Note 4) |
NA |
NA |
7.500 |
0.000 |
7.500 |
0.000 |
|
Demand by Central Excise Department benefit of Cenvat credit on capital goods (Note 5) |
NA |
NA |
22.500 |
19.500 |
22.500 |
19.500 |
|
Demand by Central Excise Department benefit of Cenvat credit on capital goods (Note 6) |
NA |
NA |
65.080 |
0.000 |
65.080 |
0.000 |
|
Demand by Road Transport Authority, Nalgonda for payment of Life Tax on dumpers used in the mines (Note No. 7) |
NA |
NA |
2.850 |
0.320 |
2.850 |
0.320 |
|
Demand Raised by Central Excise Department (Note No.8) |
NA |
NA |
5.941 |
0.000 |
0.000 |
0.000 |
|
Demand Raised by Central Excise Department ((Note No.9) |
NA |
NA |
14.630 |
0.000 |
0.000 |
0.000 |
|
Demand Raised by Central Excise Department (Note No.10) |
NA |
NA |
0.767 |
0.384 |
0.000 |
0.000 |
|
Disallowance of Expenditure U/s 14A (Note No.11) |
NA |
NA |
7.529 |
0.000 |
0.000 |
0.000 |
|
Bank Guarantees |
NA |
NA |
37.693 |
0.000 |
33.530 |
0.000 |
Notes:
1. APTRANSCO had
raised a demand of Rs.17.350 millions towards voltage surcharge and grid
supporting charges and the company has paid Rs.10.800 millions under protest. The
said demand is contested by the company and the matter is pending before the
Division Bench of the Honorable High Court of Andhra Pradesh.
2. In the year
2009-10, Sales Tax Authorities raised a demand for Rs.10.940 millions in
respect of tax on sale of fixed assets. The company has paid an amount of
Rs.2.740 millions and contested before the Sales Tax Appellate Tribunal.
3. Demand raised
by the Sales Tax Authorities for a sum of Rs.1.960 millions towards interest
U/s.16(3) of the APGST Act, on delayed payment of tax for the AY 1999-2000. The
company filed an appeal with Sales Tax Appellate Tribunal by paying an amount
of Rs.0.490 million.
4. The Income Tax
Department had raised a demand of Rs.7.500 millions on disallowances of certain
expenditure related to the AY 2006-07 and the same is contested before the
Commissioner Appeals.
5. The Excise
Department had raised a demand of Rs.22.500 millions denying the benefit of
Cenvat credit on dumpers used in captive mines. The company has paid an amount
of Rs.19.500 millions under protest and filed an appeal with CESTAT, Bangalore.
Matter is pending before CESTAT.
6. The Excise
Department had raised a demand of Rs.65.080 millions denying the Cenvat credit
on MS Steel, Cement, TMT bars etc., used in expansion. The company has
contested the same before CESTAT and the matter is pending for hearing.
7. Show Cause
Notice has been received from the RTA, Nalgonda demanding Life Tax on dumpers
purchased during year 2006 - 2010 and used in the captive mines. The matter is
contested and pending in the Honorable High Court of Andhra Pradesh.
8. Additional
Director General Intelligence Hyderabad has issued a Show Cause Notice No.
26/2012(OR Mo.53/2012) dated 27-03-13 for an amount of Rs.5.941 millions and an
equal amount of penalty along with interest on the ground that cement has been
cleared to the contractors at a rate which is lesser than the price at which
the cement was sold in the normal course of transaction, resulting into a short
payment of Central excise duty. Appeal is to be filed before the Commissioner
of Central Excise Hyderabad III Commissionerate (Adjudicating Authority) in
this regard.
9. The
Commissioner of Central Excise, Customs and Service Tax, Hyderabad III
Commissionerate has raised a
Demand for Rs.13.630
millions along with interest and also imposed a penalty Rs.1.000 millions on
the ground that the Company has availed Cenvat Credit against Service Tax paid
on the freight charges incurred for the transportation of cement beyond the
place of removal during the period from July 2008 to February 2011. Matter is
pending before CESTAT Bangalore.
10. The
Commissioner (Appeals) of Central Excise, Customs and Service Tax has
disallowed CENVAT credit of Rs.0.767 million availed during the period from
December 2006 to March 2010 on the ground that Cenvat Credit had been availed
on Input Services such as Advertisement, Audit and Telephone telex services
used in relation to the trading activity which did not have any nexus with the
manufacturing activity. An amount Rs.0.384 million has been deposited by the
company under protest and an appeal has been filed before CESTAT, Bangalore in
this regard.
11. The Deputy
Commissioner of Income Tax Circle-1(1), Hyderabad has disallowed an amount of
Rs.7.529 millions under Section 14A (Disallowance of expenditure incurred in
relation to income which is not included in the total income) claimed as
expenditure during the assessment years from 2008-09 to 2010-11 on account of
Interest paid on term loans to Financial Institutions. In this regard an appeal
has been filed by the company with Commissioner of Income Tax, Appeals-II,
Hyderabad.
INDEX OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge Creation/ Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10493282 |
29/03/2014 |
90,800,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE
CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
C04229233 |
|
2 |
10445314 |
01/03/2014 * |
400,000,000.00 |
STATE BANK OF HYDERABAD |
PANJAGUTTA BRANCH, `ROSE
MODE', H.NO.6-3-542/2, POST BOX NO.1525, HYDERABAD, ANDHRA PRADESH - 500082,
INDIA |
B97963748 |
|
3 |
10403585 |
18/09/2013 * |
980,000,000.00 |
L&T INFRASTRUCTURE
FINANCE COMPANY LIMITED |
MOUNT POONAMALLEE ROAD, MANAPAKKAM,
CHENNAI, TAMIL NADU - 600089, INDIA |
B85231413 |
|
4 |
10392242 |
18/09/2013 * |
200,000,000.00 |
L & T FINANCE LIMITED |
L&T HOUSE,, BALLARD
ESTATE,, MUMBAI, MAHARASHTRA |
B84970789 |
|
5 |
10333560 |
16/01/2012 |
90,925,568.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE
CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B31239643 |
|
6 |
10252704 |
18/11/2010 |
50,000,000.00 |
ANDHRA PRADESH STATE
FINANCIAL CORPORATION |
POST BOX NO.165, CHIRAGE ALI
LANE. ABIDS, HYDERABAD, ANDHRA PRADESH - 500001, INDIA |
A98648769 |
|
7 |
10249562 |
24/06/2011 * |
450,000,000.00 |
STATE BANK OF HYDERABAD |
PUNJAGUTTA BRANCH,
H.NO.6-3-542/2, `ROSE MODE', P |
B14947162 |
|
8 |
10057931 |
06/01/2014 * |
250,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE
BRANCH, 6-3-1109/1, RAJBHAVAN |
B95126223 |
|
9 |
90126147 |
09/11/2011 * |
1,020,000,000.00 |
STATE BANK OF HYDERABAD
(LEAD BANK) |
PUNJAGUTTA BRANCH,
H.NO.6-3-542/2, ROSE MADE, PUNJAGUTTA, HYDERABAD, ANDHRA PRADESH - 500082,
INDIA |
B24653875 |
|
10 |
90129524 |
22/01/1997 |
8,037,425.00 |
DCL FINANCE LTD. |
DECCAN CHAMBERS SOMAJIGUDA,
HYDERABAD, ANDHRA PRADESH, INDIA |
- |
|
11 |
90130817 |
22/01/1997 |
8,037,425.00 |
DCL FINANCE LTD. |
DECCAN CHAMBERS
SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH, INDIA |
- |
|
12 |
90125931 |
17/09/1996 |
1,996,000.00 |
PRIYADARSHINI LEASING AND
FINANCE LTD. |
8-3-961/B SRINAGAR
COLONY, HYDERABAD, ANDHRA PRADESH - 500873, INDIA |
- |
|
13 |
90125436 |
26/03/1985 * |
3,900,000.00 |
STATE BANK OF HYDERABAD |
HAZURNAGAR, MALGONDA,
ANDHRA PRADESH, INDIA |
- |
|
14 |
90127241 |
26/03/1985 * |
3,900,000.00 |
STATE BANK OF INDIA |
YALLA REDDY GUDA,
HYDERABAD, ANDHRA PRADESH, INDIA |
- |
* Date of charge modification
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Machinery
·
Plant and Machinery (DG Set)
·
Electrical Installations
·
Furniture and Fixtures
·
Office Equipment
·
Computers
·
Vehicles
· Other Equipment
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.60.15 |
|
|
1 |
Rs.101.92 |
|
Euro |
1 |
Rs.80.64 |
INFORMATION DETAILS
|
Information Gathered
by : |
HNA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
34 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.