MIRA INFORM REPORT
|
Report Date : |
28.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
CUMMINS INDIA LIMITED |
|
|
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Registered
Office : |
Kothrud, Pune – 411038, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
17.02.1962 |
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Com. Reg. No.: |
11-012276 |
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Capital
Investment / Paid-up Capital : |
Rs. 554.400
Millions |
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|
CIN No.: [Company Identification
No.] |
L29112PN1962PLC012276 |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Diesel Engines and Filtration Equipments. |
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No. of Employees
: |
Information not denied by management. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 95400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well – established company having fine track record. The rating reflects company’s healthy financial risk profile marked by
strong liquidity position and decent profitability levels of the company. Trade relations are reported as
fair. Business is active. Payment terms are reported to be regular and as per
commitments. The company can be considered good for normal business dealing 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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a quarter
of a century. The data was below an official estimate of 4.9 % annual growth
and compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before. A
sharp fall in gold imports due to restrictions on overseas purchases and muted
import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two. While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of Amway
India was arrested by the Andhra Pradesh Police in connection with a complaint
against the direct selling firm. This is the second time that he has been taken
into custody. A year, ago the Kerala Police had arrested Pinckney and two
company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers with hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
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 DENIED BY
Management non – cooperative (91-20-25385435)
LOCATIONS
|
Registered/ Corporate Office/ Factory 1 : |
Kothrud, Pune-411038, Maharashtra, India |
|
Tel. No.: |
91-20-25385435/ 25380240 |
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Fax No.: |
91-20-25380125 |
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E-Mail : |
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Website : |
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Factory 2 : |
Plot No. 19/25A, Silver Industrial Estate, Bhimpore, Daman 396210, India |
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Factory 3 : |
Plot No. 206/2, Off. Nagar Road, Haveli, Pune-411014, Maharashtra,
India |
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Factory 4 : |
Gat No. 311/B&1B, Kasar Amboli, District Pune - 412111,
Maharashtra, India |
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Factory 5 : |
35A/1/2 Erandwane, Pune - 411038, Maharashtra, India |
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Factory 6 : |
MIDC Phaltan, Village Survadi, District Satara, Maharashtra, India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Anant Talaulicar |
|
Designation : |
Chairman and Managing Director |
|
|
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|
Name : |
Mr. Antonio Leitao |
|
Designation : |
Director |
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|
Name : |
Mr. James Kelly |
|
Designation : |
Director |
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|
Name : |
Mr. Edward Pence |
|
Designation : |
Director |
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|
Name : |
Mr. P. M. Telang |
|
Designation : |
Director |
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|
Name : |
Mr. Naseer Munjee |
|
Designation : |
Director |
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|
Name : |
Mr. Patrick Ward |
|
Designation : |
Director |
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|
Name : |
Mr. P. S. Dasgupta |
|
Designation : |
Director |
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|
Name : |
Mr. Rajeev Bakshi |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Venu Srinivasan |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. J. M. Barrowman |
|
Designation : |
Alternate Director to M. A. Lavett |
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|
|
Name : |
Mr. Pradeep Bhargava |
|
Designation : |
Alternate Director to Patrick Ward |
KEY EXECUTIVES
|
Name : |
Mr. Pradip Phansalkar |
|
Designation : |
Senior Manager, Secretarial |
|
|
|
|
Name : |
Mr. Amit Atre |
|
Designation : |
General Manager - Legal and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
683 |
0.00 |
|
|
|
683 |
0.00 |
|
|
|
|
|
|
|
|
141372000 |
51.00 |
|
|
|
141372000 |
51.00 |
|
|
Total shareholding of Promoter and Promoter Group (A) |
141372683 |
51.00 |
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
36421054 |
13.14 |
|
|
|
18554102 |
6.69 |
|
|
|
43002876 |
15.51 |
|
|
|
97978032 |
35.35 |
|
|
|
|
|
|
|
|
11385947 |
4.11 |
|
|
|
|
|
|
|
|
23289551 |
8.40 |
|
|
|
1731335 |
0.62 |
|
|
|
1442452 |
0.52 |
|
|
|
704287 |
0.25 |
|
|
|
382879 |
0.14 |
|
|
|
3420 |
0.00 |
|
|
|
345136 |
0.12 |
|
|
|
6730 |
0.00 |
|
|
|
37849285 |
13.65 |
|
|
Total Public shareholding (B) |
135827317 |
49.00 |
|
|
Total (A)+(B) |
277200000 |
100.00 |
|
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
|
0 |
0.00 |
|
|
|
0 |
0.00 |
|
|
|
0 |
0.00 |
|
|
Total (A)+(B)+(C) |
277200000 |
0.00 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Diesel Engines and Filtration Equipments. |
GENERAL INFORMATION
|
No. of Employees : |
Information not denied by management. |
|
|
|
|
Bankers : |
Ø State Bank of
India Ø HDFC Bank
Limited Ø
Citibank, N.A. Ø Bank of America |
|
|
|
|
Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered
Accountants |
|
Address : |
Mutha Towers, 5th Floor, Suite No. 8, Airport Road,
Yerwada, Pune – 411006, Maharashtra, India |
|
|
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Holding Company
: |
Cummins Inc. |
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Fellow
subsidiaries : |
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|
|
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|
Associate : |
·
Cummins Generator Technologies India Limited |
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|
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|
Joint Venture : |
·
Valvoline Cummins Limited ·
Cummins SVAM Sales and Service Limited ·
Cummins Reseach and Technology India Limited |
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|
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|
Enterprise with
common Key Management Personnel : |
Tata Cummins Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400,000,000 |
Equity Shares |
Rs. 2/- each |
Rs. 800.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
277,200,000 |
Equity Share |
Rs. 2/- each |
Rs. 554.400
Millions |
|
|
|
|
|
a. Reconciliation of number of shares
(Rs. in millions)
|
Equity shares : |
No.
of Shares |
31.03.2012 |
|
Balance as at the beginning of the year |
198,000,000 |
396.000 |
|
Add : Bonus shares Issued during the year * |
79,200,000 |
158.400 |
|
Balance as at the end of the year |
277,200,000 |
554.400 |
* Equity shares allotted as fully paid bonus shares by capitalization of
General Reserves.
b. Rights,
preferences and restrictions attached to shares
The Company has
only one class of equity shares having a par value of Rs. 2 per share. Each
shareholder is entitled to one vote per share held. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting, except in case of interim dividend. In the
event of liquidation of the Company, the equity shareholders are eligible to
receive remaining assets of the Company, after distribution of all preferential
amounts, in the proportion to their shareholding.
c. Of the above
equity shares, 141,372,000 (previous year 100,980,000) shares of Rs. 2 each are
held by the Holding Company, Cummins Inc. USA
d. Details of shareholders holding more than 5% of the aggregate shares
in the Company
|
|
Nos. |
% |
|
Equity shares of
Rs.2 each fully paid Cummins Inc., the holding company |
141,372,000 |
51.00% |
|
Life Insurance Corporation of India (Through various schemes) |
23,619,461 |
8.52% |
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 |
554.400 |
554.400 |
396.000 |
|
(b) Reserves & Surplus |
23312.900 |
19877.100 |
17666.700 |
|
(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) |
23867.300 |
20431.500 |
18062.700 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax
liabilities (Net) |
327.800 |
0.000 |
0.000 |
|
(c)
Other long term liabilities |
150.400 |
147.000 |
197.900 |
|
(d)
long-term provisions |
1293.500 |
1006.500 |
1004.800 |
|
Total
Non-current Liabilities (3) |
1771.700 |
1153.500 |
1202.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b)
Trade payables |
5765.200 |
5166.200 |
5694.300 |
|
(c)
Other current liabilities |
1803.800 |
1516.500 |
1108.400 |
|
(d)
Short-term provisions |
3488.200 |
2749.200 |
2588.500 |
|
Total
Current Liabilities (4) |
11057.200 |
9431.900 |
9391.200 |
|
|
|
|
|
|
TOTAL |
36696.200 |
31016.900 |
28656.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
4895.800 |
4589.500 |
3482.500 |
|
(ii)
Intangible Assets |
38.500 |
59.600 |
81.200 |
|
(iii)
Capital work-in-progress |
1207.900 |
496.700 |
646.700 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b)
Non-current Investments |
533.900 |
755.100 |
586.500 |
|
(c)
Deferred tax assets (net) |
0.000 |
69.500 |
187.300 |
|
(d) Long-term Loan and Advances |
4726.300 |
3429.400 |
1898.800 |
|
(e)
Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
11402.400 |
9399.800 |
6883.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
5741.700 |
5220.400 |
6668.100 |
|
(b)
Inventories |
5303.500 |
5676.100 |
5189.600 |
|
(c)
Trade receivables |
8549.900 |
6783.400 |
7181.600 |
|
(d)
Cash and cash equivalents |
3546.500 |
2235.000 |
1037.300 |
|
(e)
Short-term loans and advances |
2061.900 |
1652.500 |
1677.200 |
|
(f)
Other current assets |
90.300 |
49.700 |
19.800 |
|
Total
Current Assets |
25293.800 |
21617.100 |
21773.600 |
|
|
|
|
|
|
TOTAL |
36696.200 |
31016.900 |
28656.600 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
45893.800 |
41172.200 |
40425.300 |
|
|
|
Other Income |
2067.200 |
1233.300 |
803.700 |
|
|
|
TOTAL (A) |
47961.000 |
42405.500 |
41229.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
27018.100 |
24466.400 |
24020.600 |
|
|
|
Purchases of Stock-in-Trade |
1854.300 |
2576.800 |
2245.900 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
1.900 |
(589.000) |
(462.800) |
|
|
|
Employees benefits expense |
3386.200 |
3039.400 |
2546.300 |
|
|
|
Exceptional items |
(615.900) |
(514.400) |
0.000 |
|
|
|
Other expenses |
5284.500 |
4706.100 |
4441.400 |
|
|
|
TOTAL (B) |
36929.100 |
33685.300 |
32791.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11031.900 |
8720.200 |
8437.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
46.100 |
54.100 |
47.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10985.800 |
8666.100 |
8390.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
472.500 |
419.800 |
366.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
10513.300 |
8246.300 |
8023.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2872.200 |
2333.600 |
2113.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
7641.100 |
5912.700 |
5909.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
12703.500 |
11907.600 |
10604.300 |
|
|
|
Other Earnings |
456.200 |
454.000 |
193.200 |
|
|
TOTAL EARNINGS |
12159.700 |
12361.600 |
10897.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
658.800 |
576.500 |
1208.400 |
|
|
|
Components |
4471.900 |
3942.800 |
4368.300 |
|
|
|
Machinery Spares |
10.500 |
11.200 |
10.000 |
|
|
|
Capital goods |
62.300 |
191.800 |
478.800 |
|
|
|
Tools, stores etc. |
7.800 |
133.400 |
191.200 |
|
|
TOTAL IMPORTS |
5211.300 |
4855.700 |
6256.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
27.57 |
21.33 |
21.32 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
15.93 |
13.94 |
14.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
22.91 |
20.03 |
19.85 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
30.08 |
27.77 |
29.46 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.44 |
0.40 |
0.44 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.29 |
2.29 |
2.32 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
396.000 |
554.400 |
554.400 |
|
Reserves & Surplus |
17666.700 |
19877.100 |
23312.900 |
|
Net worth |
18062.700 |
20431.500 |
23867.300 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
40425.300 |
41172.200 |
45893.800 |
|
|
|
1.848 |
11.468 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
40425.300 |
41172.200 |
45893.800 |
|
Profit |
5909.900 |
5912.700 |
7641.100 |
|
|
14.62% |
14.36% |
16.65% |
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 |
No |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
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 |
No |
|
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 |
No |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
LITIGATION
DETAILS:
|
CASE DETAILS |
|
|
Case Type: |
Spl Civ Suit |
|
Filling No: |
204449/ 2012 Filling Date: 10.04.2012 |
|
Registration No: |
200492/ 2012 Registration
No:19.14.2012 |
|
Case Code: |
202902044492012 |
|
|
|
|
CASE STATUS |
|
|
First Hearing date: |
18.04.2012 |
|
Next Hearing date: |
24.04.2014 |
|
Purpose of Hearing: |
Argument on Exh. Unready |
|
Court No and Judge: |
79- 2nd JT. CJSD and ADDL. C.J.M.Pune |
|
|
|
|
PETITIONER (S)
AND ADVOICATE (S) |
|
|
Petitioner : |
ISC Infraventures India Limited |
|
Address: |
4th Floor, Arthvishwa Building, lane no.5, Koregaon Park,
Pune 01. |
|
Advocate: |
C.D Dharane |
|
|
|
|
RESPONDENT (S)
ADVOCATE (S) |
|
|
Respondent : |
Cummins India Limited |
|
Address: |
Kothrud, Pune 38. |
|
Advocate: |
S.V.Kanitkar |
|
|
|
|
ACTS |
|
|
Under Act (s) : |
-------- |
|
Under Section : (s) |
-------- |
|
Subject: |
|
|
|
|
|
LOWER SOURT
INFORMATION |
|
|
Court No and Name : |
----------- |
|
Case No and Year: |
----------- |
|
Case Decision Date: |
----------- |
FINANCIAL RESULTS:
During
the financial year 2012-13, net revenue from operations was ` 45893.8 Millions
as compared to ` 41172.2 Millions during the previous year (11% higher).
Exports and other foreign exchange earnings were at ` 13159.7 Millions as
compared to `12,61.6 Millions during the previous year (6% higher). Profit
after tax increased to ` 7641.1 Millions from ` 5912.7 Millions recorded for
the previous year (29% higher).
Management Discussion and
Analysis Report
(Annexure to Directors’ Report)
1.
Industry Structure and Developments
Economic Trends and Implications
- After strong growth in the past few years FY
2012 and 2013 showed moderate GDP growth of 6.2% and 5.0%, respectively.
- The slowdown in growth was largely driven by a
lack of supportive policy measures by the Government. While and FII,
government inaction and restrictive monetary policies slowed down local
investments.
- The depreciation of the rupee, the decline of
the European and US markets and delayed / uneven monsoon further
exasperated the situation.
- In the midst of a slowdown, India also saw its
fiscal deficit rising to 5.3% for FY 2013 and current account deficit
rising to the 5.3-5.5% range.
- However, in the second half of FY 2012-13, the
government took some measures such as introduction of FDI in retail and
aviation, postponement of GAAR, fuel subsidy reduction, etc. to support
growth.
- With improvements in FII & FDI flows,
investor confidence and investment climate appears to be set to perhaps
improve.
- Additionally, measures taken by the government
to improve flow of agri–credit are expected to drive proactive sowing that
could boost growth in agriculture sector to 3.0% in FY 2013-14.
Improvement in the industrial sector could be aided by an increase in
government approvals for project investments that are currently in the
pipeline and recovery in exports is also expected as the global markets
recover gradually.
- Inflation too has started to moderate and is
expected to be in the range of 6-6.5% thus allowing RBI to cut interest
rates to boost industrial production.
- Given all of these factors most analysts
predict that the economy has bottomed out and most sources predict that
the GDP for FY 2013-14 is likely to be around 6%.
- In the long term, India’s growth story remains
intact, supported by a positive demographic dividend, rapid urbanization
and increasing growing domestic consumption.
- Post the elections in 2014, it is likely that
the new government will take actions
Product-wise Performance
Power Generation:
- Higher power deficits, especially in
South India, propelled power generation business in FY 2012-13 and
domestic sales in FY 2012-13 increased 26% over FY 2011-12.
- Despite a slowdown across developed
economies and intensifying Euro Zone crisis, low kilowatt generator
exports increased 88% due to new product introductions such as (40-75kVA)
S3.8 series and (80-125kVA) 6BTA5.9 series.
Industrial:
- Revenue in the Industrial business
dropped 9% as compared to the previous year mainly due to the drop in
sales in the Marine and Mining segments.
- Sales of engines into the Compressor
segment grew 16% due to the sustained demand in the water well rigs due to
deficient monsoon coupled with a dip in the water table and a shift
towards higher capacity node compressors.
- Marine engine sales dropped 49% on
account of postponement / deferment of projects due to a financial crunch
atshipyards resulting from higher interest rates, currency devaluation and
ban in mining activities in Karnataka & Goa.
- Sales to the mining sector declined 44%
propelled by the drop in demand for the dump truck market.
- Sales to the construction sector
remained flat as compared to previous year, owing to a sharp decline in
demand for construction equipment on account of high interest rates and
liquidity crunch. However, the Company was able to reduce the impact on
sales by increasing market share and developing new applications /
business relationships.
Automotive:
- The Company followed the declining
market trend in FY 2012-13 with volume declining 36%. Its market share
shrunk 7%, partially because of the market mix change in the segment in
which the Company holds the leadership position. However, the Company
continued to successfully serve its major customers. The Company is
expected to perform better by acquiring new customers and contributing to
the growth of the existing ones
.
Distribution:
- Distribution Business witnessed a
growth of 18.4% in FY 2012-13, with major growth coming from new engines
and reconditioned parts and engine offerings.
Exports:
- Sales witnessed growth in the first
quarter; however in subsequent quarters, the demand for export products
declined due to global economic slowdown.
- The Company supplied a record value of
engines for Marine applications in global markets during the year.
- Low liquidity in the market is causing
some delay in projects, thereby impacting the growth momentum.
Contribution in this sector in the coming years.
New
Business Initiatives 2012-13
Power Generation:
- With inauguration of a dedicated Export
facility at the Mega site SEZ in the current financial year, the Company
is well on its way to fulfill its potential as a dominant global hub for
low horsepower generators.
Industrial:
- The Company executed and shipped out a
prototype engine for the End-On-Generation Load for Rail Power Car
application. This will help the Railways substantially improve their
operational efficiency and cost.
- The Company was also able to develop value
propositions for new Construction applications such as Fork Lifts, Skid
Steer Loaders and Backhoe Loaders and also developed new relationships
with various Construction OEMs.
- In line with the shift towards higher capacity
Compressors, the Company was able to seed the 19 liter engine in the Water
Well Compressor sector with all major OEMs both for domestic and export
market needs.
- The Company supported its OEM partners by
developing various Equipments powered with Cummins engines in Compressor
and Construction sector for exporting to various countries in Africa,
Middle East and Korea.
- The Company captured new business in the High
Horse Power sector by positioning value packages in Rail (AC DEMU), Marine
& Pump sector.
- The Company has connected with one of our
major Mining OEM to develop the indigenous higher tonnage dump trucks with
our 50 & 60 liter engines.
- The Company bagged breakthrough orders for
Offshore Cranes & Offshore Emergency Genets. This marks an entry into
an untapped market in Oil & Gas sector for the Company.
- The Company was able to develop several new
applications for the Defense sector like Counter Mine Flail and Field
Artillery truck applications with the 15 liter engines
.
- The Company was able to ship the first 60 liter
engine in the Indian Main Propulsion marine engine market (Tug
Application). This will open up new market opportunities for the Company
in this sector.
Automotive:
- The Company is exploring business
opportunities with new OEMs that are planning to enter the Commercial
Vehicle Market in India. The Company is also considering leveraging
relationships with its existing customers for new solutions.
Distribution:
- To enhance the customer service capability and
capacity, Distribution Business Unit launched three new training
facilities during FY 2012-13 for our Service Engineers and customers.
These are Global Training Center in Noida, Cummins Comprehensive Technical
Training facility in Pune and the Chinaware Centre of Excellence in Madhya
Pradesh. The three facilities are enhancing the technical capability of
the Company and are expected to pave the way for additional revenue and
profitability through improved customer support.
Exports:
- As part of the initiative to add new
geographies, the Company supplied its first engines to Latin America which
will help consolidate and diversify regional business risk.
- The Company expanded the parts portfolio for
exports, providing an opportunity for the Company to increase the N
Cummins engine manufacturing facilities and after-markets across regions.
This helped compensate part of the loss in revenue due to the decline in
volumes in global engine demand.
Outlook and Initiatives for the Current Year and Thereafter
Power Generation:
- With the revival of demand in key sectors like
Industrial and Infrastructure, the long term demand outlook for diesel
generators is expected to remain high.
- With the Government announcing a phased
increase in diesel prices to eliminate the diesel subsidy and with CPCB
implementing more stringent environmental norms in the current financial
year, the Company is positioned favorably as pioneers in producing engines
with higher fuel efficiency and cleaner technology.
Industrial:
·
With the growing middle class base,
favorable demographics, rising disposable income and consumption levels,
Business, more specifically the Construction segment in the medium to long
term. The planned investments and focus on infrastructure will certainly help
revive the economy; however the uncertainties associated with the economy
continue to threaten our growth targets in the short term.
·
The Company is well engaged with the
global and domestic OEMs to capture new business opportunities in Construction and
Compressor for both domestic & export market needs.
·
The Company is in a good position to
actively support and gain from Indian Railways’ focus on increasing safety,
improving maintenance fleets, and modernizing & introducing high speed and
high capacity equipment.
·
The Company plans to explore untapped
opportunities in both Onshore & Offshore Oil & Gas sectors as well as
make inroads into the Defense engines market by capturing both new and repower
opportunities.
Automotive:
- With investments in infrastructure
development and the economy, the commercial vehicle sector is expected to
revive particularly if aided with a good agricultural produce.
- The Company continued to support its
key customers through an missionized and competitive product portfolio.
- The Bus segment is expected to show
some growth owing to government schemes like JNNURM II, Janmarg and the
growing IT Sector.
Distribution:
- During FY 2012-13, the Distribution Business
Unit has developed a CRM platform named the Cummins Dealer Operating
System (CDOS), designed to integrate all the dealer information systems on
pan India basis. This IT platform is to be launched in FY 2013-14 and is
expected to be a paradigm shift in the overall customer service experience.
Exports:
- The Company is focused on increasing
the export sales of its products. The short term outlook is uncertain
under the impact of global economic slowdown; however the Company
is positioned strongly in all its markets. There have been substantial
business development initiatives to diversify into new territories with
new and existing products; thus the impact of slowdown in existing
markets will only be moderate.
AUDITED FINANCIAL RESULTS FOR THE YEAR
ENDED MARCH 31, 2013
(Rs.
in Millions)
|
Particular |
Quarter Ended |
Quarter Ended |
Quarter Ended |
|
|
31.03.2014 |
31.12.2013 (Unaudited) |
31.03.2014 (Audited) |
|
Income from Operations |
|
|
|
|
Net
Sales/Income from Operations |
9560.100 |
10005.700 |
38991.100 |
|
Other
Operating Income |
156.100 |
224.400 |
775.600 |
|
Total Income from operations (net) |
9716.200 |
10230.100 |
39766.700 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of materials
consumed |
5780.300 |
5746.400 |
22808.400 |
|
(b) Purchase of stock-in-trade |
361.600 |
406.700 |
1484.300 |
|
(c) Changes
in Inventories of Finished Goods, work in progress and stock in trade |
(186.800) |
(14.000) |
(51.600) |
|
(d) Employee benefit
expenses |
816.700 |
872.900 |
3396.200 |
|
(e)
Depreciation and amortization expenses |
145.800 |
133.100 |
527.500 |
|
(f) Other
Expenses |
1235.100 |
1242.500 |
5162.100 |
|
Total Expenses |
8152.700 |
8387.600 |
33326.900 |
|
Profit from
Operations before Other Income, Finance costs and Exceptional item |
1562.500 |
1842.500 |
6439.800 |
|
Other Income |
214.500 |
236.300 |
1777.100 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
1878.000 |
2078.800 |
8216.900 |
|
Finance costs |
10.600 |
9.700 |
41.800 |
|
Profit/ Loss
from Ordinary Activities after Finance costs but Exceptional item |
1867.400 |
2069.100 |
8175.100 |
|
Exceptional
item |
- |
- |
- |
|
Profit/ Loss
from Ordinary Activities before tax |
1867.400 |
2069.100 |
8175.100 |
|
Tax Expenses |
449.500 |
596.800 |
2174.900 |
|
Net Profit/
Loss from Ordinary Activities after tax |
1417.900 |
1472.300 |
6000.200 |
|
Extraordinary
Items |
- |
- |
- |
|
Net Profit for the period |
1417.900 |
1472.300 |
6000.200 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
554.400 |
554.400 |
554.400 |
|
Reserves excluding
revaluation reserves as per balance sheet of Previous Accounting Year |
- |
- |
25097.100 |
|
Earnings per share |
|
|
|
|
Basic and
Diluted Earnings per share (before extraordinary items) (of Rs. 10/- each)
(not annualized |
5.12 |
5.31 |
21.65 |
|
Basic and
Diluted Earnings per share (after extraordinary items) (of Rs. 10/- each)
(not annualized) |
5.12 |
5.31 |
21.65 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public shareholding |
|
|
|
|
Number of
Shares |
135,827,317 |
135,827,317 |
135,827,317 |
|
Percentage of
Shareholding |
49% |
49% |
49% |
|
2. Promoters and promoter group
shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
NA |
NA |
NA |
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
NA |
NA |
NA |
|
|
|
|
|
|
Non -
encumbered |
|
|
|
|
- Number of Shares |
141,372,683 |
141,372,683 |
141,372,683 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter
group) |
100% |
100% |
100% |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
51% |
51% |
51% |
|
|
Particulars |
Quarter ended March 31, 2013 |
|
B |
Investor
complaints [Nos.] |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
Nil |
|
|
Disposed of during the quarter |
Nil |
|
|
Remaining unresolved at the end of the quarter |
Nil |
1.
Disclosure
of Assets and Liabilities as per clause 41(l)(ea) of the Listing Agreement
STATEMENT OF
ASSETS AND LIABILITIES
(Rs. in millions)
|
Particulars |
31.03.2014 |
|
|
(Audited) |
|
EQUITY AND
LIABILITIES |
|
|
Shareholders'
Funds |
|
|
Share
Capital |
554.400 |
|
Reserves
and Surplus |
25097.100 |
|
|
25651.500 |
|
Non-current
Liabilities |
|
|
Deferred
tax liabilities (Net) |
465.100 |
|
Long-term
Liabilities |
201.900 |
|
Long-term
Provisions |
1170.900 |
|
|
1837.900 |
|
Current
Liabilities |
|
|
Trade
Payables |
4851.100 |
|
Other
Current Liabilities |
1856.700 |
|
Short-term
Provisions |
3530.100 |
|
|
10237.900 |
|
TOTAL
EQUITY & LIABILITIES |
37727.300 |
|
ASSETS |
|
|
Non-current
Assets |
|
|
Fixed
Assets |
10149.100 |
|
Non-current
Investments |
533.900 |
|
Deferred
Tax Assets (net) |
0.000 |
|
Long-term
Loans and Advances |
6879.500 |
|
|
17562.500 |
|
Current
Assets |
|
|
Current
Investments |
4419.600 |
|
Inventories |
5513.400 |
|
Trade
Receivables |
7820.300 |
|
Cash and
Bank Balances |
864.900 |
|
Short-term
Loans and Advances |
1525.000 |
|
Other
Current Assets |
21.600 |
|
|
20164.800 |
|
TOTAL
ASSETS |
37727.300 |
2.
Previous
period ('s) / year ('s) figures have been re-grouped wherever necessary.
3.
Other
Income for the quarter and year ended March 31, 2013 includes profit on sale of
long term (non - trade) investments of Rs. 490.800 Millions, which is non - recurring.
4.
Exceptional
Items for the year ended March 31, 2013 represents profit on sale of long term
(trade) investments.
5.
The
Company operates in one primary business segment that is “Engines”
6.
The
Board of Directors have recommended a final dividend of Rs. 8/- per equity
share of Rs. 2/- each fully paid up for the financial year 2013-14 in addition
to the interim dividend of Rs. 5/- per share declared on February 4, 2014
7.
The
figures of the last quarter are the balancing figures between the audited figures
in respect of the full financial year and the published year to date figures up
to the third quarter of the current financial year.
8. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 22, 2014
INDEX OF CHARGES
|
No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10352228 |
04/04/2012 |
1,200,000,000.00 |
State Bank of India |
Industrial Finance Branch, Tara Chambers, Pune, |
B38300901 |
|
2 |
90089545 |
28/03/1990 |
10,300,000.00 |
BANK OF MAHARASHTRA |
KARVE ROAD, PUNE, Maharashtra - 411004, INDIA |
- |
|
3 |
90089535 |
15/03/1990 |
3,400,000.00 |
THE UNITED WESTERN BANK LTD. |
GANESH NAGAR, PUNE, Maharashtra - 411038, INDIA |
- |
|
4 |
90089531 |
28/02/1990 |
16,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, JUSTICE G.N VAIDYA MARG, BOMBA |
- |
|
5 |
90089449 |
04/03/1989 |
10,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, BOMBAY, Maharashtra, INDIA |
- |
|
6 |
90087620 |
30/09/1988 |
1,730,000.00 |
THE UNITED WESTERN BANK LTD. |
GANESH NAGAR BRANCH, PUNE, Maharashtra - 411038, I |
- |
|
7 |
90089367 |
13/10/1987 |
1,217,800.00 |
BANK OF MAHARASHTRA |
KARVE ROAD, PUNE, Maharashtra - 411004, INDIA |
- |
|
8 |
90083474 |
25/06/1987 |
1,000,000.00 |
BANK OF MAHARASHTRA |
KARVE ROAD, PUNE, Maharashtra - 411104, INDIA |
- |
|
9 |
90089336 |
19/04/1987 |
560,300.00 |
THE UNITED WESTERN BANK LTD. |
GANESH NAGAR, PUNE, Maharashtra - 411004, INDIA |
- |
|
10 |
90089335 |
18/04/1987 |
285,100.00 |
THE UNITED WESTERN BANK LTD. |
GANESH NAGAR, PUNE, Maharashtra - 411004, INDIA |
- |
NEWS RELEASE
CONTACT:
Gitanjali Sabikhi
+91 9820211064
gitanjali.sabikhi@bm.com
May 22, 2014
PRESS RELEASE
Cummins India Limited (CIL) Sales for Q4 2013–14 down 15%, Net Profit
before Tax (excluding exceptional items and sale of investments) down 13%
compared to same period last year. CIL sales for the year ended March, 31 2014
down 14%, Net Profit before Tax (excluding exceptional items and sale of
investments) down 13%. Recommends final
dividend of Rs. 8 per share of Rs. 2 (400% of share capital)
Aggregating to Rs. 13 per share of Rs 2 each (650% of share capital) for
the year ended March, 31 2014.
Pune, India: In their meeting held
today, the Board of Directors of Cummins India Limited took on record the
audited annual financial results for the year and the un-audited results for
the quarter ended March 31, 2014.
Net sales of the Company for the quarter ended
March 31, 2014 at Rs. 956 crores, represented a drop of 15% as compared to the
same period last year, and a drop of 4% over the preceding quarter. Net profit
before tax (excluding exceptional items and sale of investments) at Rs. 187
crores represented a 13% decline as compared to the same period last year, and
10% decline as compared to the preceding quarter.
For the year ended March 31, 2014, net sales
of the Company were Rs. 3,899 crores, a drop of 14% over the last year. Net
profit before tax (excluding exceptional items and sale of investments) was
Rs.818 crores, representing a 13% decrease over the last year.
Anant J. Talaulicar, Chairman & Managing
Director, Cummins India Limited, said, “The Company’s performance for the year
ended March 31, 2014 was impacted by a continued slowdown in the domestic
market. Power Generation sales declined due to low demand for capital goods
while Industrial sales were flat due to Industrial OEM’s exporting more
equipment out of India. I am happy to relay that our team has executed our
value engineering and cost reduction program very well utilizing our time
tested Six Sigma
Approach. This was instrumental in our being
able to maintain our profitability
Even as the macro-economic conditions remain
challenging in the short and medium term, we are confident about our long-term growth
prospects based on our market leadership, technology strength, and customer
support and people talent.”
About Cummins India Limited
Cummins India Limited, headquartered in Pune
since 1962, is the country's leading manufacturer of diesel and natural gas
engines for power generation, industrial and automotive markets.
About Cummins Group in India
Cummins in India, a power leader, is a group
of complementary business units that design, manufacture, distribute and
service engines and related technologies, including fuel systems, air handling,
filtration, emission solutions and electrical power generation systems. Its
technology and pioneering initiatives are bringing innovative solutions and
dependable services at the best possible value to users across the country. Its
high performance outlook is based on customer focus, integrity and capability
of its people. Part of the US $17 billion Cummins Inc., Cummins in India is a
Group of eight legal entities across 200
locations in the country with a combined turnover of Rs. 9,834 crores in 2013 and employing close to 9,000
individuals.
FIXED ASSETS
Tangible Assets:
Ø Freehold Land
Ø Leasehold Land
Ø Leasehold
Improvements
Ø Roads
Ø Buildings
Ø Plant and
machinery
Ø Furniture and
fittings
Ø Vehicles
Intangible Assets:
Ø Software
Ø Technical Knowhow
Ø Global Sourcing
Consideration
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
THEM Dollar |
1 |
Rs.60.16 |
|
|
1 |
Rs.102.23 |
|
Euro |
1 |
Rs.82.04 |
INFORMATION DETAILS
|
Information Gathered
by : |
GYT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
JGT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
64 |
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.