MIRA INFORM REPORT

 

 

Report Date :

07.03.2014

 

IDENTIFICATION DETAILS

 

Name :

SAURASHTRA CEMENT LIMITED

 

 

Registered Office :

Near Railway Station, Ranavav – 360 560, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

11.06.1956

 

 

Com. Reg. No.:

04-000840

 

 

Capital Investment / Paid-up Capital :

Rs. 580.702 Millions

 

 

CIN No.:

[Company Identification No.]

L26941GJ1956PLC000840

 

 

Legal Form :

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

 

 

Line of Business :

manufacturer of Ordinary Portland Cement and Pozzolana Portland Cement

 

 

No. of Employees :

474 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (19)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Sick company

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Exist

 

 

Comments :

Subject is the Hag Ship company of the Mehta Group, one of the leading players in the Indian Cement Industry.

 

The company is registered with the Board for Industrial and Financial Reconstruction (BIFR) vide case no 9/2006 since F.Y. 2005-2006, for financial restructuring process.

 

However, with the help of BIFR scheme and certain reliefs and concessions applicable to all sick industrial companies, the performance of the company is improving gradually marked by wiping of its accumulated losses during 2013.

 

Business is active. Payment terms are reported as slow.

 

In view of established market position, the subject can be considered for business dealings on a fully safe and secured trade terms and conditions. 

 

NOTES :

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

 

ECGC Country Risk Classification List – December 1, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

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

 

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

 

Management Non Co-operative (91-2801-304200)

 

LOCATIONS

 

Registered Office / Factory  :

Near Railway Station, Ranavav – 360 560, Gujarat, India

Tel. No.:

91-2801-230824/27/28/29 

Fax No.:

91-2801-230830/230617 

E-Mail :

scl-mum@mehtagroup.com

Website :

www.mehtagroup.com

 

 

Corporate Office :

N. K. Mehta International House, 3rd Floor, 178, Backbay Reclamation, Mumbai - 400 020, Maharashtra, India

Tel. No.:

91-22-66365444/66365390

Fax No.:

91-22-66365445

 

 

Marketing Office :

Pelican, 7th Floor, Gujarat Chambers of Commerce and Industry Compound, Ashram Road, Ahmedabad - 380 009, Gujarat, India

Tel. No.:

91-79-2658 0135/0137/ 2658 9353

Fax No.:

91-79-2658 7265/2657 5453

 

 

Regional Offices :

Located at:

  • Mumbai
  • Bhavnagar
  • Rajkot
  • Surat
  • Vadodara
  • Junagadh

 

 

DIRECTORS

 

As on 31.03.2013

 

Name :

Mr. M N Mehta

Designation :

Chairman

 

 

Name :

Mr. Jay M Mehta

Designation :

Executive Vice Chairman

 

 

Name :

Mr. Hemang D. Mehta

Designation :

Director

 

 

Name :

Mr. M.N. Rao

Designation :

Director

 

 

Name :

Mr. S.V.S Raghavan

Designation :

Director

 

 

Name :

Mr. B.P. Deshmukh

Designation :

Director

 

 

Name :

Mr. K.N. Bhandari

Designation :

Director

 

 

Name :

Mr. Jayant N. Godbole

Designation :

Director

 

 

Name :

Mr. Hemnabh Khatau

Designation :

Director

 

 

Name :

Mr. Bimal Thakkar

Designation :

Director

 

 

Name :

Mr. Anil Kaul

Designation :

Special Director - BIFR

 

 

Name :

Mr. Denys Firth

Designation :

Nominee - India Debt Management Private Limited

 

 

Name :

Mr. Alexander Shaik

Designation :

Nominee - India Debt Management Private Limited

 

 

Name :

Mr. Sisheel Kak

Designation :

Nominee - India Debt Management Private Limited

 

 

Name :

Mr. M.S. Gilotra

Designation :

Managing Director

 

 

KEY EXECUTIVES

 

Name :

Mr. V R Mohnot 

Designation :

Director (Finance) and Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2013

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

215578

0.42

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

149117

0.29

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

364695

0.71

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

 

 

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

32610166

63.70

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

32610166

63.70

Total shareholding of Promoter and Promoter Group (A)

32974861

64.42

(B) Public Shareholding

 

 

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

 

 

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

1250

0.00

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

1006194

1.97

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

669604

1.31

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

1810

0.00

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

1678858

3.28

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

 

 

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

1976561

3.86

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

 

 

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

2010301

3.93

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

2049762

4.00

http://www.bseindia.com/include/images/clear.gifQualified Foreign Investor

360228

0.70

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

10140494

19.81

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

10029100

19.59

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

111394

0.22

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

16537346

32.31

Total Public shareholding (B)

18216204

35.58

Total (A)+(B)

51191065

100.00

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

0

0.00

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

0

0.00

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

0

0.00

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

0

0.00

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

51191065

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

manufacturer of Ordinary Portland Cement and Pozzolana Portland Cement

 

 

Products :

Item Code No

Product Description

2232901

Cement Ordinary Portland Cement

2231000

Clinker

 

 

  • Hathi OPC 43 Grade
  • Hathi OPC 53 Grade
  • Hathi PPC 53P Grade
  • Chootu Hathi 1 K. G
  • Chhotu Hathi 5 K.G

 

 

GENERAL INFORMATION

 

No. of Employees :

474 (Approximately)

 

 

Bankers :

·         Bank of India

·         Central Bank of India

·         Dena Bank

·         HDFC Bank Limited

·         Rajkot Nagarik Sahakari Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

LONG-TERM BORROWINGS

 

 

Debentures

12% Non-convertible Debentures – Under Corporate Debt Restructuring (CDR)

112.041

201.674

Term Loans

 

 

From Banks

173.652

271.661

From Others

858.954

553.268

SHORT-TERM BORROWINGS

 

 

Loans Repayable on Demand from Banks

 

 

Cash Credits

13.131

9.861

Others

44.074

44.117

Total

1201.852

1080.581

 

Security:

The working capital facilities are secured by first charge by way of hypothecation of the current assets namely, stocks of raw materials, semi finished and finished goods, consumable stores and spares, bills receivables, book debts and all other movables, both present and future. It is also secured by second mortgage and charge on the Company’s immovable and movable properties both present and future. They are also secured by personal guarantee of two Directors of the Company. Of the above, a cash credit facility from a bank aggregating to Rs.1.139 Millions (Previous Year Rs.1.163 Millions), is further secured by shares of Gujarat Sidhee Cement Limited held by subsidiary companies.

 

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

Bansi S Mehta and Company 

Chartered Accountants 

Address :

Merchant Chember, 3rd Floor, 41, New Marine Line, Mumbai – 400 020, Maharashtra, India

Tel. No.:

91-22-22014922 / 22004002 / 22068409

Fax No.:

91-22-22050147

E-Mail :

bsmco@hathway.com

 

 

Enterprises under control, or are controlled by, or under common control, with the reporting enterprise are;

·         Jagmi Investment Limited

·         Sumaraj Holdings Private Limited

·         Fawn Trading Company Private Limited

·         Clarence Investments Limited

·         Fern Trading Company Private Limited

·         TransAsia Investment and Trading Limited

·         Willow Trading Company Private Limited

·         Hopgood Investments Limited

·         Tejashree Trading Company Private Limited

·         Sampson Limited

·         Pallor Trading Company Private Limited

·         Villa Trading Company Private Limited

·         The Mehta International Limited

·         Aber Investments Limited

·         Mehta Private Limited

·         Galaxy Technologies Private Limited

·         Sameta Exports Private Limited

·         Mehta Sports Private Limited

·         Glenn Investments Limited

·         The Sea Island Investments Limited

·         Sunnidhi Trading Private Limited

 

 

Subsidiary Companies :

·         Agrima Consultants International Limited

·         Ria Holdings Limited

·         Pranay Holdings Limited

·         Reeti Investments Limited

·         Prachit Holdings Limited

·         Concorde Cement Private Limited

 

 

Enterprise having Key Management Personnel in common :

Gujarat Sidhee Cement Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

130000000

Equity Shares 

Rs. 10/- each

Rs.1300.000 millions

6000000

Preference Shares

Rs. 100/- each

Rs 600.000 millions

5000000

Unclassified shares

Rs. 10/- each

Rs. 50.000 millions

 

Total

 

Rs.1950.000 Millions

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

59095018

Equity Shares 

Rs. 10/- each

Rs.590.950 millions

687595

13% Cumulative Preference Shares

Rs. 100/- each

Rs.68.760 millions

 

Total

 

Rs.659.710 Millions

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

51191065

Equity Shares 

Rs. 10/- each

Rs. 511.911 millions

687595

13% Cumulative Preference Shares

Rs. 100/- each

Rs. 68.760 millions

15269

Forfeited Shares

 

Rs. 0.031 millions

 

Total

 

Rs. 580.702 Millions

 

 

Reconciliation of the number of shares outstanding and amount of share capital

 

Numbers

Rs. In Millions

a. Equity Shares, of Rs.10 par value

 

 

At the beginning

5,11,91,065

511.911

Changes during the year

--

--

At the end

5,11,91,065

511.911

 

 

 

b. Preference Shares, of Rs.100 par value

 

 

At the beginning

6,87,595

68.760

Changes during the year

--

--

At the end

6,87,595

68.760

 

 

RIGHTS, PREFERENCES AND RESTRICTIONS

 

a. Equity Shares

 

i. The Company has only one class of equity shares referred to as equity shares having a par value of Rs. 10. Each holder of equity shares is entitled to one vote per share.

 

ii. Dividends, if any, is declared and paid in Indian rupees. The dividend, if any, 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. However, in view of the carried forward losses, no dividend is / was declared on the equity shares for the year ended March 31, 2013 / March 31, 2012.

 

iii. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

b. Preference Shares:

 

i. The Company has only one class of preference shares referred to as 13% Optionally Convertible Cumulative Preference Shares (OCCPS) having a par value of Rs.100. The preference shares do not carry any voting right. In terms of Section 87 of the Companies Act, 1956, the holders of cumulative preference shares get entitled to vote on every resolution placed by the Company at any meeting, if the dividend due on such shares or any part thereof has remained unpaid in respect of an aggregate period of not less than two years preceding the date of commencement of the meeting.

 

ii. OCCPS carried a fixed cumulative dividend of 13% per annum from the date of issue. The holders of OCCPS carry a right to dividend ahead of equity share holders.

 

iii. In the event of liquidation, the holders of OCCPS carry preference over equity shareholders in respect of repayment of capital.

 

iv. OCCPS were redeemable at par on March 31, 2003. Of the total Preference Share Capital of Rs.687.60 lacs, the holders of 1,74,557 OCCPS of Rs. 100 par value, aggregating to Rs. 17.456 Millions, have surrendered their right in the redemption, including the preference dividend thereon for the benefit of the Company. Based on the advise received, pending the availability of funds / distributable profits for the redemption of capital, the beneficial ownership of these OCCPS has already been transferred in favour of a trust of which the Company is the beneficiary. The accounting effect of such waiver (only in respect of these OCCPS) shall be made as and when such shares will be redeemed. For the balance of OCCPS, the right of conversion lapsed on August 22, 2003.

 

DETAILS OF SHARES HELD BY SHAREHOLDERS HOLDING MORE THAN 5% OF THE AGGREGATE SHARES IN

THE COMPANY

 

 

Numbers

%

a. Equity Shares

 

 

Clarence Investments Limited

1,28,86,599

25.17%

Jagmi Investments Limited

51,75,000

10.11%

Mauritius Debt Management Limited

74,50,000

14.55%

Sampson Limited

40,00,000

7.81%

Trans Asia Investments And Trading Limited

80,00,000

15.63%

 

 

 

b. Preference Shares

 

 

India Debt Management Private Limited

5,12,398

74.52%

A.M. Fadia - Trustee of SCL Preference Shares Trust

1,74,557

25.39%

 

 

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

580.702

580.702

580.702

(b) Reserves & Surplus

920.257

(914.600)

(701.571)

(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)

1500.959

(333.898)

(120.869)

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1144.647

1026.603

1213.440

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

68.087

63.383

62.944

(d) long-term provisions

80.767

72.515

58.948

Total Non-current Liabilities (3)

1293.501

1162.501

1335.332

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

57.205

53.978

78.710

(b) Trade payables

359.240

424.831

447.640

(c) Other current liabilities

1116.072

3224.474

2954.222

(d) Short-term provisions

25.173

22.840

30.492

Total Current Liabilities (4)

1557.690

3726.123

3511.064

 

 

 

 

TOTAL

4352.150

4554.726

4725.527

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2062.574

2185.287

2397.571

(ii) Intangible Assets

3.314

4.275

5.634

(iii) Capital work-in-progress

635.810

772.761

764.023

(iv) Intangible assets under development

6.975

0.000

0.000

(b) Non-current Investments

188.019

188.021

188.021

(c) Deferred tax assets (net)

0.000

320.468

320.468

(d)  Long-term Loan and Advances

124.488

112.668

100.077

(e) Other Non-current assets

48.041

42.290

37.830

Total Non-Current Assets

3069.221

3625.770

3813.624

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

666.642

544.629

451.955

(c) Trade receivables

139.346

176.928

249.945

(d) Cash and cash equivalents

341.002

57.717

80.292

(e) Short-term loans and advances

104.915

143.514

120.681

(f) Other current assets

31.024

6.168

9.030

Total Current Assets

1282.929

928.956

911.903

 

 

 

 

TOTAL

4352.150

4554.726

4725.527

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

5379.105

4386.181

3926.775

 

 

Other Income

102.582

52.595

49.369

 

 

TOTAL                                     (A)

5481.687

4438.776

3976.144

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

349.564

316.313

262.501

 

 

Purchases of Stock-in-Trade

293.966

161.034

128.433

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(0.071)

25.079

(111.552)

 

 

Employees benefits expense

281.884

249.120

241.263

 

 

Exceptional items - gain / (loss)

(1611.529)

0.000

3.124

 

 

Impairment loss

0.000

0.000

65.669

 

 

Other expenses

3329.229

3211.472

3141.543

 

 

TOTAL                                     (B)

2643.043

3963.018

3730.981

 

 

 

 

 

Less

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

2838.644

475.758

245.163

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

333.827

446.990

427.817

 

 

 

 

 

 

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

2504.817

28.768

-182.654

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

343.960

219.643

238.291

 

 

 

 

 

 

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

2160.857

(190.875)

(420.945)

 

 

 

 

 

Less

TAX                                                                  (H)

320.468

0.000

149.617

 

 

 

 

 

 

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

1840.389

(190.875)

(570.562)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2913.925)

(2723.050)

(2152.488)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(1073.536)

(2913.925)

(2723.050)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Exports on FOB basis

948.481

805.909

425.072

 

TOTAL EARNINGS

948.481

805.909

425.072

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Components and Spare Parts

49.411

30.488

23.124

 

 

Capital Goods

2.555

0.000

1.482

 

TOTAL IMPORTS

51.966

30.488

24.606

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

35.78

3.90

(11.32)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

33.57

-4.30

-14.35

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

40.17

-4.35

-10.72

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

61.36

-5.83

-12.19

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

1.44

0.57

3.48

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.80

-3.24

-10.69

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.82

0.25

0.26

 

 

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

580.702

580.702

580.702

Reserves & Surplus

(701.571)

(914.600)

920.257

Net worth

(120.869)

(333.898)

1500.959

 

 

 

 

long-term borrowings

1213.440

1026.603

1144.647

Short term borrowings

78.710

53.978

57.205

Total borrowings

1292.150

1080.581

1201.852

Debt/Equity ratio

(10.690)

(3.236)

0.801

 

 

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

3926.775

4386.181

5379.105

 

 

11.699

22.638

 

 

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

3926.775

4386.181

5379.105

Profit

(570.562)

(190.875)

1840.389

 

(14.53%)

(4.35%)

34.21%

 

 

 

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

No

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

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

 

 

LITIGATIONS DETAILS

 

HIGH COURT OF GUJARAT

SPECIAL CIVIL APPLICATION No. 7577 of 2013

 

Status : PENDING

(Converted from : ST/7770/2013 )

CCIN No : 001021201307577

Next Listing Date:

07/04/2014

 

Coram

HONOURABLE MR.JUSTICE K.M.THAKER

 

 

S.NO.

Name of the Petitioner

Advocate On Record

1
2
3

PANKAJKUMAR SANKALCHAND PATEL
SANKALCHAND JECHANDBHAI PATEL THRO'POA PANKAJKUMAR S PATEL
SALILKUMAR SANKALCHAND PATEL THRO'POA PANKAJKUMAR S PATEL

MRS VD NANAVATI for: Petitioner(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1 - 3

 

S.NO.

Name of the Respondant

Advocate On Record

1
2
3

SAURASHTRA CEMENT LIMITED
JIVANLAL BALDEVBHAI PATEL CHAIRMAN
VITTHALBHAI JAYCHANDBHAI PATEL

MR NISARG N TRIVEDI for :Respondent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1
MR. HJ KARATHIYA for :Respondent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 2
MR PRADIP J PATEL for :Respondent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 3

 

Presented On

: 22/04/2013

Registered On

: 24/04/2013

Bench Category

: SINGLE BENCH

District

: GANDHINAGAR

Case Originated From

: THROUGH ADVOCATE

Listed

: 22 times

StageName

: NOTICE AND ADJOURNED MATTERS

Classification

SJ - NON-SERVICE - LOWER COURT - CODE OF CIVIL PROCEDURE, 1908 - OTHER MISCELLANEOUS MATTERS

Act

CONSTITUTION OF INDIA

 

LOWERCOURT DETAILS

 

S.No.

LowerCourt CaseDetail

LowerCourtName

JudgeName

Judgmentdate

1

SCS/136/2008

DISTRICT COURT, GANDHINAGAR

-

10/04/2013

 

OFFICE DETAILS

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

22/04/2013

VAKALATNAMA

MRS VD NANAVATI ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

5

MRS VD NANAVATI:1-3

2

22/04/2013

CERTIFIED COPY

MRS VD NANAVATI ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

8

MRS VD NANAVATI:1-3

3

22/04/2013

MEMO OF APPEAL/PETITION/SUIT

MRS VD NANAVATI ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

100

MRS VD NANAVATI:1-3

4

05/07/2013

VAKALATNAMA

MR NISARG N TRIVEDI ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

5

MR NISARG N TRIVEDI(6144), for R:1

5

09/07/2013

VAKALATNAMA

MR. HJ KARATHIYA ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 2

5

MR. HJ KARATHIYA(7012), for R:2

6

28/11/2013

VAKALATNAMA

MR PRADIP J PATEL ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 3

5

MR PRADIP J PATEL(5896) for R:3

 

COURT PROCEEDINGS

 

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

25/04/2013

17

6

ADMISSION (FRESH MATTERS)

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

2

08/05/2013

17

35

OFFICE OBJECTION REMOVED

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

3

20/06/2013

16

22

ADMISSION (ADJOUNRED MATTERS)

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

4

11/07/2013

16

17

URGENT ADMISSION (ADJOUNRED MATTERS)

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

5

31/07/2013

16

21

URGENT ADMISSION (ADJOUNRED MATTERS)

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

6

13/08/2013

16

21

URGENT ADMISSION (ADJOUNRED MATTERS)

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

7

27/08/2013

12

27

URGENT ADMISSION (ADJOUNRED MATTERS)

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI 

HONOURABLE MR.JUSTICE G.B.SHAH

8

06/09/2013

12

25

URGENT ADMISSION (ADJOUNRED MATTERS)

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

9

17/09/2013

12

16

URGENT ADMISSION (ADJOUNRED MATTERS)

FIXED NOTICE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

10

24/09/2013

12

98

FOR ORDERS

 

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

11

30/09/2013

12

108

FOR ORDERS

FIXED NOTICE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

12

09/10/2013

12

-

NOTICE AND ADJOURNED MATTERS

 

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

13

23/10/2013

12

66

NOTICE AND ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

14

04/12/2013

12

68

NOTICE AND ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

15

20/12/2013

12

68

NOTICE AND ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

16

30/01/2014

13

35

NOTICE AND ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI 

HONOURABLE MR.JUSTICE K.M.THAKER

17

03/03/2014

13

43

NOTICE AND ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE K.M.THAKER

18

07/04/2014

13

43

NOTICE AND ADJOURNED MATTERS

 

HONOURABLE MR.JUSTICE K.M.THAKER

 

AVAILABLE ORDERS

 

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

Download

1

SPECIAL CIVIL APPLICATION/7577/2013

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

17/09/2013

N

ORDER

-

Y

Download

 

2

SPECIAL CIVIL APPLICATION/7577/2013

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

30/09/2013

N

ORDER

-

Y

Download

 

3

SPECIAL CIVIL APPLICATION/7577/2013

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

23/10/2013

N

ORDER

-

Y

Download

 

 

 

THE YEAR

 

The slowdown in the economy resulted in an overall average growth rate of the eight core industries (including cement, steel, fertilizer, oil, gas etc.) during April, 2012 to March, 2013 to 2.6 percent from 5 percent for the same period of previous year. The cement production still grew at 5.6 percent, even though it was lower than the average growth in the previous years.

 

Cement consumption in Gujarat registered a 5 percent growth over the previous year, which although lower than the average annual growth rate of around 9 percent during the previous five-year period, is better than many other regions of the country. The consumption growth could have been better, but for delayed and deficient monsoons. The State received only 73 percent of the normal average rainfall and the Saurashtra region was the worst affected with rainfall of 57 percent of the normal.

 

The abnormal increase in the price of diesel, by around 15 percent, had a cascading effect on the manufacturing cost as well as cost of delivery for cement. The increase in rail freights (varying between 11 to 25 percent) also adversely affected the cost of delivering cement to customers. The increase in excise duty by 2 percent was an additional burden on the industry.

 

The slow economic growth did result in better availability of power and power sale through energy exchange, became less attractive due to the prevailing lower rates, most of the time. Softer coal prices and improved price levels in local markets helped improve profitability.

 

PERFORMANCE REVIEW

 

Production and Sales

 

The production of clinker and cement for the year ended March, 2013 was 1.28 million tonnes and 1.34 million tonnes, as against 1.14 million tonnes and 1.26 million tonnes respectively in the previous year.

 

The total sale of cement and clinker was 1.48 million tonnes as against 1.34 million tonnes in the previous year. Their higher volume of sale and better realizations contributed to higher profits. Along with the higher volumes, better distribution of cement helped in reduced freight cost, contributing to higher realizations. Improved fuel cost, power consumption, as well as better realizations from exports due to exchange rate variation also positively contributed to profitability.

 

Exports

 

The export of cement and clinker for the year ended March, 2013 was 0.31 million tonnes as compared to 0.33 million tonnes in the previous year. However, there was improvement in realizations, due to weakening of Indian Rupee.

 

BIFR

 

The Company is a Sick Industrial Company, pursuant to section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and is registered with Board for Industrial and Financial Reconstruction (BIFR).

 

Hon’ble BIFR vide its order dated 14.3.2013 circulated write up on the sanctioned scheme to all concerned. As per the scheme, the company is required to repay all the secured debts of CDR lenders and India Debt Management Private Limited before March 2016. The Company is regular in payment of debts on quarterly basis to all secured lenders.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

Industry Structure and Development

 

The all India cement production during the period April, 2012 to March, 2013 registered a cumulative growth of 5.6 percent as against 6.7 percent during the corresponding period of last year. The cumulative growth for the eight core industries (coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity) is 2.6 percent as against 5 percent in the previous year. The capacity addition during the year 2012 is around 35 million tonnes. The surplus capacity available in Gujarat and Rajasthan, coupled with entry of new players in the already fragmented markets result in high price volatility, and variations in prices in different regions and different periods of time.

 

Future Outlook

 

Though the economic growth is marginally low, the sustained policies on the need of infrastructure facilities and the housing needs of the population will enhance the consumption of cement further in the country. Compared with other core industries, the growth of cement industry is better, though it is lower than the previous year. The long-term future of the cement industry is optimistic and positive. However, due to addition of new plants with large capacities, the capacity utilization would continue to be low. In the state of Gujarat, there is likely to be a large surplus of capacity over demand for the near future, which may affect the stability of cement prices. A large part of production therefore will need to be exported or transported to longer distances, in other states like Maharashtra, Karnataka and Kerala.

 

 

UNAUDITED FINANCIAL RESULTS FOR THIRD QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2013

Rs. In Millions

 

Particulars

 

Quarter ended

Nine Months ended

31.12.2013

30.09.2013

31.12.2013

Unaudited

Unaudited

Unaudited

1

Income from Operations

 

 

 

 

(a) Net sates/income from operations (Net of excise duty)

1418.349

1073.422

3515.246

 

(b) Other Operating Income

16.588

9.238

29.319

 

Total income from operations (net)

1434.937

1082.660

3544.565

2

Expenses

 

 

 

 

(a) Cost of materials consumed

81.512

65.529

219.242

 

(b) Purchases of stock-in trade

106.331

172.412

290.143

 

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

95.209

(59.688)

(59.702)

 

(d) Employee benefits expense

84.549

66.433

219.460

 

(e) Depreciation and Anmortisation Expenses

53.885

54.481

163.911

 

(f) Stores and Repairs Expenses

106.337

238.964

504.760

 

(g) Freight Expenses

148.616

103.317

370.522

 

(h) Power and Fuel Expenses

388.654

336.158

1091.176

 

(f) Other Expenses

224.109

181.911

612.592

 

Total expenses

1289.202

1159.517

3412.104

3

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

145.735

(76.857)

132.461

4

Other Income

8.166

7.888

27.835

5

Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)

153.901

(68.969)

160.295

6

Finance Costs

42.296

42.940

132.388

7

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

111.605

(111.909)

27.908

8

Exceptional items

--

--

--

9

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

111.605

(111.909)

27.908

10

Tax expenses

5.600

(1.034)

5.600

11

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

106.005

(110.875)

22.308

12

Extraordinary item (net of tax expense)

--

--

--

13

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

106.005

(110.875)

22.308

14

Share of profit' (loss) of associates

--

--

--

15

Minority Interest

--

--

--

16

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

106.005

(110.875)

22.308

17

Paid up equity share capital (Face Value of Rs10/-

each)

511.911

511.911

511.911

18

Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year

--

--

--

19.i

Basic and Diluted Earnings per share of Rs.10/- each (not annualised): In Rs.

2.03

(2.21)

0.30

 

 

 

 

 

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding

 

 

 

 

- Number of shares

1,82,16,204

1,82,16,204

1,82,16,204

 

- Percentage of shareholding

35.58%

35.58%

35.58%

2

Promoters and Promoter group shareholding

 

 

 

 

a) Pledged / Encumbered

 

 

 

 

- Number of shares

3,27,59,283

3,27,59,283

3,27,59,283

 

- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)

99.35%

99.35%

99.35%

 

- Percentage of shares (as a % of the total Share Capital of the Company)

63.99%

63.99%

63.99%

 

b) Non Encumbered

 

 

 

 

- Number of shares

2,15,578

2,15,578

2,15,578

 

- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)

0.65%

0.65%

0.65%

 

- Percentage of shares (as a % of the total Share Capital of the Company)

0.43%

0.43%

0.43%

 

 

 

 

 

B

INVESTOR COMPLAINTS

 

 

 

 

Pending at the beginning of the quarter

NIL

 

 

 

Received during the quarter

NIL

 

 

 

Disposed off during the quarter

NIL

 

 

 

Remaining unresolved at the end of the quarter

NIL

 

 

 

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

 

Charge Holder

Address

Service Request Number (SRN)

1

10230392

12/09/2013 *

1,158,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BUILDING, GROUND FLOOR, R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B86411105

2

10231444

08/06/2010

1,157,900,000.00

DENA BANK

INDUSTRIAL FINANCE BRANCH, DENA BANK BUILDING, 1ST FLOOR 17 HORNIMAN CIRCLE FORT, MUMBAI, MAHARASHTRA - 400023, INDIA

A90583964

3

10145016

21/01/2010 *

2,210,500,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BLDG., GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

A79810206

4

10108561

22/05/2008

12,000,000.00

SREI INFRASTRUCTURE FINANCE LIMITED

VISHWAKARMA, 86C, TOPSIA ROAD (SOUTH), KOLKATA, WEST BENGAL - 700046, INDIA

A40746091

5

10029618

08/12/2006

1,340,000.00

SREI INFRASTRUCTURE FINANCE LIMITED

VISHWAKARMA, 86C, TOPSIA ROAD (SOUTH), KOLKATA, WEST BENGAL - 700046, INDIA

A08376246

6

10012975

03/08/2006

1,000,000.00

INDIAN OVERSEAS BANK

SECTOR:16, GH-ROAD, GANDHINAGAE, GUJARAT - 382016, INDIA

A03252061

7

80032484

18/03/2008 *

708,100,000.00

CENTRAL BANK OF INDIA LIMITED

CHANDERMUKHI, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400020, INDIA

A37615259

8

80043460

19/07/1999

2,500,000.00

THE SARASWAT CO-OPERATIVE BANK LIMITED

BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400038, INDIA

-

9

80042699

18/03/2008 *

51,600,000.00

CENTRAL BANK OF INDIA LIMITED

M.G.ROAD, PORBANDAR, GUJARAT, GUJARAT - 360561, INDIA

A37611191

10

80042413

31/10/2007 *

403,866,000.00

IFCI LIMITED

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

A38152310

11

80042416

27/02/2008 *

145,000,000.00

CENTRAL BANK OF INDIA LIMITED

M.G.ROAD, PORBANDAR, GUJARAT, GUJARAT - 360561, INDIA

A37613858

12

80025124

19/06/2007 *

100,000,000.00

INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED

IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

A18368027

13

80042415

27/02/2008 *

134,900,000.00

CENTRAL BANK OF INDIA LIMITED

M.G.ROAD, PORBANDAR, GUJARAT, GUJARAT - 360561, INDIA

A37612553

14

80025125

19/06/2007 *

581,500,000.00

INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED

IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

A18367425

 

* Date of charge modification

 

 

FIXED ASSETS

 

·         Freehold land

·         Leasehold land

·         Buildings

·         Jetty – civil works

·         Railway siding and weigh bridge

·         Water supply installation

·         Electric installation

·         Plant and machinery

·         Rolling stock and locomotives

·         Furniture and fixtures

·         Office equipments

·         Motor cars, trucks etc

·         Air conditioner

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.61.32

UK Pound

1

Rs.102.54

Euro

1

Rs.84.19

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Report Prepared by :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

2

--CREDIT LINES

1~10

1

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

19

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

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

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