MIRA INFORM REPORT

 

 

Report Date :

18.03.2014

 

IDENTIFICATION DETAILS

 

Name :

AIA ENGINEERING LIMITED

 

 

Registered Office :

115, GVMM Estate, Odhav Road, Odhav, Ahmedabad-382410, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

11.03.1991

 

 

Com. Reg. No.:

015182

 

 

Capital Investment / Paid-up Capital :

Rs.188.641 Millions

 

 

CIN No.:

[Company Identification No.]

L29259GJ1991PLC015182

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of High Chromium Consumable Wear Parts (Mill Internals) use in Process of Crushing / Grinding in the Cement, Mining, Thermal Power and Aggregate Industries. 

 

 

No. of Employees :

1000 [Approximately] 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (69)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

56-70

A

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

Fairly Large

 

Maximum Credit Limit :

USD 43348000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having fine track record.

 

Fundamentals of the company is decent. Financial position of the company is strong and healthy.

 

Trade relation reported to be fair. Business is active. Payment terms are reported to be regular and as per commitments.

 

The company can be considered normal for 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 – 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

 

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

 

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

 

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

 

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

 

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

 

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

 

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

 

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

AA+ [Long Term]

Rating Explanation

High degree of safety and very low credit risk.

Date

30.12.2013

 

 

Rating Agency Name

CRISIL

Rating

A1+ [Short Term]

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

30.12.2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Vivek Rathore

Designation :

Account Executive

Contact No.:

91-79-22901078

Date :

12.03.2014

 

 

LOCATIONS

 

Registered Office :

115, GVMM Estate, Odhav Road, Odhav, Ahmedabad-382410, Gujarat, India

Tel. No.:

91-79-22901078

Fax No.:

91-79-22901077

E-Mail :

vivekrathore@aiaengineering.com

info@aiaengineering.com

Location :

Owned

 

 

Factory 1 :

235-236, and other Plants at GVMM Estate, Odhav Road, Odhav, Ahmedabad-382410, Gujarat, India

 

 

Factory 2 :

129/129-A, GVMM Estate, Odhav Road, (Erstwhile Reclamation Welding Limited), Ahmedabad-382410, Gujarat, India

 

 

Factory 3 :

Plot No. 70-77, Survey No. 423/P, 426/P and 427/P, Mahagujarat Industrial Estate, Sarkhej-Bavla N.H. 8-A, Village Molaiya, Post Changodal, Taluka Sanand, Ahmedabad-382213, Gujarat, India

 

 

Factory 4 :

18/P, 20th Mile Stone, Sarkhej-Bavla N.H. 8-A, Village Molaiya, Post Changodal, Taluka Sanand, Ahmedabad-382213, Gujarat, India

 

 

Factory 5 :

Plot No. 14, (Survey No. 67, 67A and 70), Girnar Scooter Compound, Odhav, Ahmedabad-382410, Gujarat, Indai

 

 

Factory 6 :

L-3, MIDC Industrial Area (Erstwhile Paramount Centrispun Castings Private Limited), Hingna Nagar, Nagpur-440016, Maharashtra, India

 

 

Branch Office :

Located At:

 

  • Mumbai
  • Ahmedabad

 

 

DIRECTORS

 

AS ON 31.03.2013

 

Name :

Mr. Rajendra S. Shah

Designation :

Chairman : Independent - Non-Executive

 

 

Name :

Mr. Bhadresh K. Shah

Designation :

Managing Director : Executive - Promoter

 

 

Name :

Mr. Vinod Narain

Designation :

Independent Director

 

 

Name :

Mr. Sanjay S. Majmudar

Designation :

Independent Director

 

 

Name :

Dr. S. Srikumar

Designation :

Non Independent - Non-Executive Director

 

 

Name :

Mr. Yashwant M. Patel

Designation :

Whole-time Director

 

 

KEY EXECUTIVES

 

Name :

Mr. S. N. Jetheliya

Designation :

Company Secretary

 

 

Name :

Mr. Vivek Rathore

Designation :

Account Executive

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2013

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

58149120

61.65

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

58149120

61.65

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

 

 

Total shareholding of Promoter and Promoter Group (A)

58149120

61.65

(B) Public Shareholding

 

 

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

 

 

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

5272482

5.59

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

500

0.00

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

25117240

26.63

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

0

0.00

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

30390222

32.22

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

 

 

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

3163192

3.35

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

1691037

1.79

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

758664

0.80

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

168135

0.18

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

97596

0.10

http://www.bseindia.com/include/images/clear.gifNRIs/OCBs

70539

0.07

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

5781028

6.13

Total Public shareholding (B)

36171250

38.35

Total (A)+(B)

94320370

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)

94320370

0.00

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of High Chromium Consumable Wear Parts (Mill Internals) use in Process of Crushing / Grinding in the Cement, Mining, Thermal Power and Aggregate Industries. 

 

 

Exports :

 

Products :

Finished Goods

Countries :
  • Canada
  • UK
  • Australia

 

 

Imports :

 

Products :

Raw Materials

Countries :

USA

 

 

Terms :

 

Selling :

LC and Credit

 

 

Purchasing :

LC and Credit

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

1000 [Approximately] 

 

 

Bankers :
  • State Bank of India, G.V.M.S.A.V. Limited Branch, Odhav Road, Odhav, Ahmedabad-382410, Gujarat, India

 

  • The Royal Bank of Scotland N.V., (Formerly known as ABN AMRO Bank), Viva Complex, Opposite Parimal Garden, Ellis Bridge, Ahmedabad – 380 006, Gujarat, India

 

  • Citi Bank N.A., 1st Floor, Kalapurnam, Near Municipal Market, C.G. Road, Ahmedabad-380 009, Gujarat, India

 

  • HSBC Bank Limited, Maradia Plaza, Upper Level, C.G. Road, Ahmedabad-380 009, Gujarat, India

 

 

Facilities :

Secured Loan

As on 31.03.2013

[Rs. in Millions]

As on 31.03.2012

[Rs. in Millions]

Long Term Borrowings

 

 

From Banks

 

 

-       External Commercial Borrowings

1015.129

0.000

-       Foreign Currency Loan Buyer’s Credit

28.264

0.000

 

 

 

Short Term Borrowings

 

 

Loans Repayable on Demand

 

 

From Banks

 

 

-       Foreign Currency Loan Buyer’s Credit/Packing Credit

370.609

254.350

TOTAL

1414.002

254.350

 

 

 

Unsecured Loan

As on 31.03.2013

[Rs. in Millions]

As on 31.03.2012

[Rs. in Millions]

Long Term Borrowings

 

 

Deferred Payment Liabilities *

11.052

12.790

 

 

 

Short Term Borrowings

 

 

From Banks

 

 

-       Foreign Currency Loan Buyer’s Credit

43.723

0.000

TOTAL

54.775

12.790

 

Long Term Borrowings:

 

Terms of repayment for External Commercial Borrowings:

 

External Commercial Borrowings (ECB) of US $ 18700000 is secured by hypothecation of Identified Plant and Machineries procured / to be procured from it and to be installed at Moraiya Unit (M1) of the Company mentioned in Hypothecation Agrrement. The Loan is repayable in 15 equal quarterly instalments of US$ 1246667 after a moratorium period of 18 months from the date of first draw-down i.e. 3rd October, 2012. Interest rates are reset every three months at the rate of 3 months US$ LIBOR plus285 bps p.a. The first Instalment will due on 3rd April, 2014 and the loan will be fully re-paid on 3rd October, 2017.

 

Repayment of External Commercial Borrowings (ECB)

Rs. In Millions

2014-15

270.701

2015-16

270.701

2016-17

270.701

2017-18

203.026

 

 

Terms of repayment for Buyers Credit:

 

The Company has availed Buyer’s Credit of GBP 330204.10 and EURO 14840.46 are secured by first and exclusive charge over specific Plant and Machinery being imported. The Buyer’s Credit loans are repayable at 4th January, 2016 and 9th February, 2016 respectively. The Interest rates are determined as a spread over 90 /180 days LIBOR and the spread is a function of liquidity available with the Bank. The Buyer’s Credit finance arranged in this financial year has been at a spread of 150 bps over LIBOR.

 

Terms of repayment for deferred payment liabilities are as set out below:

 

Repayment of Deferred Sales Tax under Package Scheme of Incentive 1993

Rs. In Millions

2014-15

1.801

2015-16

2.232

2016-17

1.895

2017-18

1.748

2018-19

1.372

2019-20

2.004

 

* Deferred Sales tax under Package Scheme of Incentives 1993 of Maharashtra for erstwhile Paramount Centrispun Castings Private Limited.

 

Short Term Borrowings:

 

Terms of repayment for Buyers Credit:

 

The Company has availed Buyer’s Credit / Packing Credit of US$ 1827108.33 and US$ 5000000 respectively which are secured by Hypothecation of entire chargeable Current Assets of the Company including Stocks of Raw Materials, Stores and Spares, Work In-Process and Receivables on pari-passu basis. The Interest rates are determined as a spread over 90 /180 days LIBOR and the spread is a function of liquidity available with the Bank. The Buyer’s Credit finance arranged in this financial year has been at a spread of 150 bps over LIBOR.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Talati and Talati

Chartered Accountants 

Address :

Ambica Chambers, Near Old High Court, Navrangpura, Ahmedabad-380009, Gujarat, India

 

 

Subsidiaries :
  • Welcast Steels Limited, Bangalore
  • DCPL Foundries Limited, Trichy
  • Vega Industries (Middle East) FZE, U.A.E.
  • Vega Industries Limited, U.K.
  • Vega Industries Limited, U.S.A.
  • Vega Steel Industries (RSA) PTY Limited, South Africa
  • Wuxi Weigejia Trade Company Limited, China

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

230000000

Equity Shares

Rs.2/- each

Rs.460.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

94320370

Equity Shares

Rs.2/- each

Rs.188.641 Millions

 

NOTES:

 

RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO EQUITY SHARES:

 

The company has one class of equity shares having a par value of Rs. 2 each. Each shareholder is eligible for 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. 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.

 

During the year ended 31st March, 2013, the amount of Dividend proposed by the Board of Directors of the Company to the Equity Share holders is Rs. 4 per Share (Previous Year Rs. 3 per Share)

 

THE DETAILS OF SHAREHOLDER HOLDING MORE THAN 5% SHARES IS SET OUT BELOW:

 

NAME OF SHAREHOLDER

AS ON 31.03.2013

 

NO. OF SHARES

% OF HOLDING

Bhadresh K. Shah

39626875

42.01

Bhadresh K. Shah Karta of Bhadresh K. Shah H.U.F

18502025

19.62

Nalanda India Equity Fund Limited

7918845

8.40

HDFC Trustee Company Limited

- HDFC Prudent Fund

5822074

6.17

 

 

AGGREGATE NUMBER AND CLASS OF SHARES ALLOTTED AS FULLY PAID UP PURSUANT TO CONTRACT(S) WITHOUT PAYMENT BEING RECEIVED IN CASH:

 

336430 Equity Shares (Previous Year 336430) of Rs. 2 each fully paid-up have been issued to the Shareholders of the Amalgamating Company i.e. Reclamation Welding Limited pursuant to the Scheme of Amalgamation with the Company during the Financial Year 2009-10.

 

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

188.641

188.641

188.641

(b) Reserves & Surplus

10648.545

9398.614

8218.255

(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)

10837.186

9587.255

8406.896

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

1054.445

12.790

14.187

(b) Deferred tax liabilities (Net)

196.646

182.887

157.950

(c) Other long term liabilities

0.000

0.000

0.000

(d) Long-term provisions

36.514

26.672

20.735

Total Non-current Liabilities (3)

1287.605

222.349

192.872

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

414.332

254.350

0.000

(b) Trade payables

859.021

726.724

602.461

(c) Other current liabilities

214.791

158.028

172.846

(d) Short-term provisions

682.228

467.556

382.729

Total Current Liabilities (4)

2170.372

1606.658

1158.036

 

 

 

 

TOTAL

14295.163

114162.262

9757.804

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3368.789

3133.759

2415.923

(ii) Intangible Assets

24.000

21.462

8.176

(iii) Capital work-in-progress

314.472

180.849

134.759

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

154.600

151.592

151.592

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

97.609

118.244

32.168

(e) Other Non-current assets

9.159

56.612

44.230

Total Non-Current Assets

3968.629

3662.518

2786.848

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

1765.788

1121.059

1501.332

(b) Inventories

2096.429

1621.048

1318.520

(c) Trade receivables

2335.231

2971.616

2432.126

(d) Cash and cash equivalents

2085.801

778.108

840.859

(e) Short-term loans and advances

2035.224

1228.338

877.345

(f) Other current assets

8.061

33.575

0.774

Total Current Assets

10326.534

7753.744

6970.956

 

 

 

 

TOTAL

14295.163

11416.262

9757.804

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

15860.366

12725.600

9854.719

 

 

Other Income

193.306

116.531

163.300

 

 

TOTAL                                     (A)

16053.672

12842.131

10018.019

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

5139.524

4207.740

3087.279

 

 

Purchases of Stock-in-Trade

2312.811

2072.240

1600.217

 

 

Employee Benefits Expense

518.722

417.836

341.381

 

 

Other Expenses

5237.363

3885.648

3083.175

 

 

Changes in Inventories of Finished goods, Work-in-process and Stock-in-Trade

47.345

(217.305)

(200.647)

 

 

TOTAL                                     (B)

13255.765

10366.159

7911.405

 

 

 

 

 

Less

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

2797.907

2475.972

2106.614

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

32.193

21.340

0.238

 

 

 

 

 

 

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

2765.714

2454.632

2106.376

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

306.932

254.720

213.821

 

 

 

 

 

 

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

2458.782

2199.912

1892.555

 

 

 

 

 

Less

TAX                                                                  (H)

767.747

690.837

595.062

 

 

 

 

 

 

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

1691.035

1509.075

1297.493

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

5782.000

4752.551

3913.524

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

169.110

150.910

129.750

 

 

Proposed Dividend

377.281

282.961

282.961

 

 

Tax on Dividend

63.823

45.755

45.755

 

BALANCE CARRIED TO THE B/S

6862.821

5782.000

4752.551

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials -  Scrap

657.368

378.038

204.686

 

 

Raw Materials -Ferro Alloys

533.953

383.147

454.279

 

 

Stores

414.287

292.090

197.743

 

 

Capital Goods

261.938

219.972

37.485

 

TOTAL IMPORTS

1867.546

1273.247

894.193

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

17.93

16.00

13.76

 

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2013

30.09.2013

31.12.2013

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

4013.800

4502.200

4548.000

Total Expenditure

3032.900

3414.900

3414.400

PBIDT (Excl OI)

980.900

1087.200

1133.600

Other Income

100.800

(32.100)

92.700

Operating Profit

1081.700

1055.100

1226.300

Interest

11.500

15.400

00.800

Exceptional Items

0.000

0.000

(311.100)

PBDT

1070.200

1039.700

914.500

Depreciation

80.100

82.200

83.700

Profit Before Tax

990.100

957.500

830.700

Tax

309.500

305.800

263.800

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

680.700

651.700

566.900

Extraordinary Items

0.000

0.000

0.000

Net Profit

680.700

651.700

566.900

 

 

 KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
10.53

11.75

12.95

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
15.50

17.29

19.20

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
17.78

19.85

19.98

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.23

0.23

0.23

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.14

0.03

0.00

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
4.75

4.83

6.02

 

 

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

188.641

188.641

188.641

Reserves & Surplus

8218.255

9398.614

10648.545

Net worth

8,406.896

9,587.255

10,837.186

 

 

 

 

long-term borrowings

14.187

12.790

1054.445

Short term borrowings

0.000

254.350

414.332

Total borrowings

14.187

267.140

1,468.777

Debt/Equity ratio

0.002

0.028

0.136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

9854.719

12725.600

15860.366

 

 

29.132

24.634

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

9854.719

12725.600

15860.366

Profit

1297.493

1509.075

1691.035

 

13.17%

11.86%

10.66%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

No

31]

PAN of Proprietor/Partner/Director, if available

No

32]

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

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

INDEX OF CHARGES:

 

S. NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10425511

14/05/2013

420,000,000.00

THE HONG KONG AND SHANGHAI BANKING CORPORATION LIMITED

52/60,, MAHATMA GANDHI ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA

B75061259

2

10392966

13/12/2012

1,028,500,000.00

CITIBANK N.A

1ST FLOOR, KALAPURNAM, NEAR MUNICIPAL MARKET, CG 
ROAD, AHMEDABAD - 380009,  GUJARAT, INDIA

B64512841

3

90107020

25/08/2009 *

3,630,000,000.00

STATE BANK OF INDIA

MID CORPORATE LOAN ADMINISTRATION UNIT, 4TH FLOOR , BHADRA, AHMEDABAD - 380001, GUJARAT, INDIA

A69602712

4

90104117

31/03/2010 *

3,630,000,000.00

STATE BANK OF INDIA

MID CORPORATE LOAN ADMINISTRATION UNIT, 4TH FLOOR , BHADRA, AHMEDABAD - 380001, GUJARAT, INDIA

A83081745

 

* Date of charge modification

 

 

LITIGATION DETAILS:

 

 

HIGH COURT OF GUJARAT

 

TAX APPEAL No. 475 of 2012

STATUS: PENDING                         (CONVERTED FROM : ST/1411/2012)            CCIN NO : 001092201200475

 

NEXT LISTING DATE: 16/08/2012

 

CORAM: HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI

HONOURABLE MR.JUSTICE N.V.ANJARIA

--

   

S. NO.

NAME OF THE PETITIONER

ADVOCATE ON RECORD

1

COMMISSIONER OF INCOME TAX-I

MRS MAUNA M BHATT for: Appellant(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

 

 

S. NO.

NAME OF THE RESPONDENT

ADVOCATE ON RECORD

1

AIA ENGINEERING LTD

RULE SERVED for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1
MR TUSHAR P HEMANI for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1
MS VAIBHAVI K PARIKH for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

Presented On:       12/07/2012                                                        Registered On: 17/07/2012

 

Bench Category: DIVISION BENCH                                            District: AHMEDABAD

 

Case Originated From: THROUGH ADVOCATE                          Listed: 87 times

 

Stage Name: FOR FINAL HEARING

 

Classification: DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA

 

Act: INCOME-TAX ACT, 1961                                                    

 

OTHER FORUMS

 

S. No.

CASEDETAILS

TRIBUNAL REFERRENCE

ORDER PASSED BY

JUDGEMENT DATE

PLACE

1

ITA/580/AHD/2011

INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH

ACCOUNT MEMBER

19/01/2012

AHMEDABAD

 

 

OFFICE DETAILS

 

S. NO.

FILING DATE

DOCUMENT NAME

ADVOCATE NAME

COURT FEE ON DOCUMENT

DOCUMENT DETAILS

1

12/07/2012

CERTIFIED COPY

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

6

MRS MAUNA M BHATT:1

2

12/07/2012

MEMO OF APPEAL/PETITION/SUIT

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

20

MRS MAUNA M BHATT:1

3

15/08/2012

VAKALATNAMA

MR TUSHAR P HEMANI ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

-

MR TUSHAR P HEMANI:1

4

15/08/2012

VAKALATNAMA

MS VAIBHAVI K PARIKH ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

-

MS VAIBHAVI K PARIKH:1

5

15/08/2012

DOCUMENT

RULE SERVED 
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

-

RULE SERVED:1

 

 

COURT PROCEEDINGS

 

S. NO.

NOTIFIED DATE

COURT CODE

BOARD SR. NO.

STAGE

ACTION

CORAM

1

16/08/2012

3

-

FOR FINAL HEARING

FIXED RULE / ADMIT

·         HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI 

·         HONOURABLE MR.JUSTICE N.V.ANJARIA

 

CERTIFIED COPY

 

S. NO.

APPLICANT NAME

APPLICATION TYPE

APPLICATION DATE

UOL NUMBER

ORDER DATE

NOTIFY DATE

DELIVERY DATE

STATUS

NATURE OF DOCUMENT

1

MRS MAUNA M BHATT

ORDINARY

17/08/2012

O/27333/2012

16/08/2012

22/08/2012

23/08/2012

Delivered

ORDER

 

 

OPERATIONAL REVIEW:

 

During the year, the Revenue from Operations of the Company has gone up to Rs. 15860.366 Millions as compared to Rs. 12725.600 Millions in the previous Financial Year. Exports Turnover has also gone up to Rs. 10339.425 Millions as compared to Rs. 7560.215 Millions in the previous Financial Year. During the year, Company has registered a Profit Before Tax (PBT) of Rs. 2458.782 Millions and Profit After Tax (PAT) of Rs. 1691.035 Millions as compared to PBT of Rs. 2199.912 Millions and PAT of Rs. 1509.075 Millions respectively in the previous Financial year. During the year, on a Consolidated basis, the Company (together with its Subsidiaries) registered Revenue from Operations of Rs. 17513.107 Millions as compared to the Turnover of Rs. 14166.664 Millions in the previous Financial Year. Correspondingly, the Consolidated Profit After Tax (PAT) registered during the year is Rs. 2116.233 Millions as compared to PAT of Rs. 1812.043 Millions in the previous Financial Year.

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

INDUSTRY OVERVIEW:

 

AIAE manufactures and markets a wide range of High Chromium consumable wear parts (mill internals) which are used in the process of Crushing/Grinding in the Cement, Mining, Thermal power and Aggregate Industries. These are core industries from an economic stand-point and are the basic drivers of infrastructural development. The Company employs alloy-casting process for manufacture of the products, which require designing of alloys in relation to end application. The casting process is followed by precision heat treatment to develop required end properties. Therefore, Company can generally be classified as a foundry. The industry produces a specific range of high chrome mill internals which are used as wear parts in the crushing / grinding operations in the mills/plants of Cement, Mining, Utility and Aggregate industries and therefore the market prospects are linked with the requirement of these industries.

 

AIAE has a global footprint with sales and service support in more than 90 countries. Segmentally, the global cement industry has been undergoing structural issues and virtually all new capacity addition has come to a halt except for a few select countries. Also, capacity utilization in developed countries continues to remain flat. Even in India, the Cement industry, having grown its capacity to 300 million tonnes per annum, seems to have entered a phase of consolidation with new capacity additions having slowed down. As for the mining business, as many reports suggest, it seems an era of super-cycle for commodities has come to an end. Capacity addition plans for many companies are being put on hold. But AIAE’s prospects are more closely linked to the capacity utilization of the mines and the subsequent wear part replacement which seems to be holding up well till now. The Company will continue to monitor this very closely. In India, in addition to the above two industries, AIAE is also servicing the replacement and new capex requirements of coal fired thermal power plants and is thus directly catering to the power sector. India is projected to continue to be power deficit for the foreseeable future and hence a sustained growth in this particular segment in India is predictable.

 

OUTLOOK AND PROSPECTS:

 

The annual replacement market of High Chrome mill internals for cement globally is estimated at around 0.300 million tons. The overall position of the cement industry in the key global markets continued to remain sluggish for a major part of Fiscal Year 2013. There is expectation that to stimulate growth in the developed countries their governments will have to resort to infrastructure spending and which will trigger positive improvements in capacity utilizations at Cement plants. AIAE will be a beneficiary as and when the same is witnessed. In addition, there are certain specific markets in Asia, Africa and South America that continue to add capacity and/or have increased capacity utilization. In China, the company currently has a limited presence in form of a particular variety of products. China continues to remain a major market and the company will continue to invest resources and strategy for a bigger market share. In India while new capacities were created the pace has distinctively slowed down. Nevertheless India’s cement production has increased by around 8 to 10% in Fiscal Year 2013 and on a matching basis the company has maintained a similar growth in the cement replacement market in India.

 

In the mining industry the company is predominantly focused on four major metal ore types’ viz. Iron, Platinum, Gold and Copper with emphasis on the replacement market. The growth prospects are primarily emanating out of the large annual replacement market in this industry. The addressable market opportunity relating to wear parts are estimated in the range of 1.5 to 2.0 million tons per annum Out of this less than 20% requirement is converted into high chrome which implies the opportunity of conversion of the balance requirements into high chrome products. While the company started its foray into mining space with concentration on grinding media, the company has now successfully developed mining liners also. Even within grinding media, the company has developed certain specialized applications. Now the company is positioned as perhaps the only company in the world offering the complete range of Mining High- Chrome consumables including grinding media products as well as mining liners made out of chrome alloys. This positioning is unique to the company and augurs well for the consistent and steady growth in this industry over medium to long term. Again, since the company is focused on the above four major ores some cyclical fluctuations in any of the above products does not impact significantly the company’s growth prospects. AIAE has steadily increased its market presence in the major mining groups across the Globe with particularly strong focus on major mining centers like Australia, Africa, North America, etc. The focus of the company in mining industry is predominantly outside India. In as much as the thermal power plants are concerned the Company continues to enjoy a niche position in this particular segment in India. The company will strive to maintain a steady growth rate in this particular segment matching with the rate at which the sector grows.

 

CAPEX PLAN:

 

The company is on target in implementing its Capex plans for Fiscal Year 2013-14 and 2014-15 so as to effectively augment the total available capacity from the exiting level of 200,000 Metric tonnes per year as on 31.03.2013 to 300,000 Metric tonnes per year by 31.03.2015. This expansion consists of brown field capex at its plant in Moraiya, Gujarat and Greenfield Capex at its site in Kerala GIDC in Gujarat.

 

 

FIXED ASSETS:

 

  • Freehold Land
  • Leasehold Land
  • Building
  • Plant and Machinery
  • Furniture and Fixtures
  • Vehicles
  • Office Equipments

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS ENDED 31ST DECEMBER 2013

 

Rs. In Millions

Sr.

No.

Particular

Quarter Ended

Nine Months Ended

 

 

31.12.2013

30.09.2013

31.12.2013

 

 

Unaudited

Unaudited

Unaudited

 

 

 

 

 

1.

Net Sales/Income from Operations

4359.677

4325.643

12541.922

 

Other Operating Income

188.282

176.517

522.008

 

Total Income From Operations (Net)

4547.959

4502.160

13063.930

 

 

 

 

 

2.

Expenditure

 

 

 

 

Cost of materials consumed

1465.488

1295.104

3975.478

 

Purchase of stock in trade

657.366

694.706

1908.273

 

Employee benefits expenses

142.043

143.326

423.786

 

Depreciation and amortization expenses

83.735

82.172

245.997

 

Other expenses

1266.761

1255.581

3632.993

 

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

(117.293)

26.217

(78.296)

 

Total Expenses

3498.100

3497.106

10108.231

 

 

 

 

 

3.

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

1049.859

1005.0054

2955.699

 

 

 

 

 

4.

Other Income

92.721

(32.111)

161.436

 

 

 

 

 

5.

Profit Before Interest and Exceptional Items (3+4)

1142.580

972.943

3117.135

 

 

 

 

 

6.

Interest

0.755

15.439

27.681

 

 

 

 

 

7.

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

1141.825

957.504

3089.454

 

 

 

 

 

8.

Exceptional Items

311.100

--

311.100

 

 

 

 

 

9.

Profit from Ordinary Activities before Tax (7+8)

830.725

957.504

2778.354

 

 

 

 

 

10.

Tax Expense

 

 

 

 

a) Current tax

264.183

303.530

870.523

 

b) Deferred tax

(0.399)

2.295

8.536

 

Total

263.784

305.825

879.059

 

 

 

 

 

11.

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

566.941

651.679

1899.295

 

 

 

 

 

12.

Extraordinary Item (net of expense)

--

--

--

 

 

 

 

 

13.

Net Profit for the period (11-12)

566.941

651.679

1899.295

 

 

 

 

 

14.

Paid-up Equity Share Capital (Face Value of Rs.2/- Each)

188.641

188.641

188.641

 

 

 

 

 

15.

Reserves Excluding Revaluation Reserve

--

--

--

 

 

 

 

 

16.

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

 

 

 

 

a) Basic and diluted EPS before extraordinary items

6.01

6.91

20.14

 

b) Basic and diluted EPS after extraordinary items

6.01

6.91

20.14

 

 

 

 

 

17.

Public Shareholding

 

 

 

 

-Number of Shares

36171250

36171250

36171250

 

- Percentage of Shareholding

38.35

38.35

38.35

 

 

 

 

 

18.

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged/Encumbered

 

 

 

 

- Number of Shares

Nil

Nil

Nil

 

- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)

Nil

 

Nil

Nil

 

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

Nil

 

Nil

Nil

 

 

 

 

 

 

b) Non Encumbered

 

 

 

 

- Number of Shares

58149120

58149120

58149120

 

- 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)

61.65

61.65

61.65

 

 

Particulars

3 Months ended on 31.12.2013

Pending at the beginning of the quarter

Nil

Received during the quarter

1

Disposed of during the quarter

1

Remaining unresolved at the end of the quarter

Nil

 

NOTES:

 

  1. The above Un-audited Financial Results for the Quarter and Nine Months ended 31st December 2013 have been reviewed by the Audit Committee and were taken on record by the Board of Directors in their respective meetings held on 27th January 2014.

 

  1. The Company has only one primary segment i.e. manufacturing of High Chrome Mill Internals.

 

  1. The Un-audited Financial Results for the Quarter and Nine Months ended 31st December 2013 have been Limited Reviewed by the Statutory Auditors of the Company.

 

  1. The Company has acquired 13000 Equity Shares of the face value of Rs.10 each of Welcast Steels Limited (WSL). In view of the said acquisition, the Shareholding of the Company in WSL has gone up from 464661 Equity Shares (72.80%) to 477661 Equity Shares (74.85%) with effect from 07.11.2013.

 

  1. The Company has proposed a Scheme of Amalgamation of DCPL Foundries Limited, a Wholly-owned Subsidiary of the Company with the Company. The Appointed date for the merger is 1st April 2013 subject to the approval of the Hon'ble High of Gujarat and other Authorities.

 

  1. The previous Period / Year figures have been regrouped, reclassified and restated wherever necessary to make them comparable with the current period / Year figures.

 

  1. The transitional loss representing the loss on foreign currency forwards and interest rate swap of Rs. 244.07 Lacs as required by AS-30 has been adjusted out of Reserves and Surplus against the Cash Flow Hedging Reserve.

 

  1. During the Quarter ended 31st December 2013, the Profit before Tax (PBT) is reduced to the extent of Rs.3111.00 Lacs, which has been paid to Megatteaux International (MI), Belgium towards the settlement of US Patent case as per the Settlement Agreement entered by the Company with MI and the same is shown under the head of Exceptional Item.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No 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.61.52

UK Pound

1

Rs.102.22

Euro

1

Rs.85.23

 

 

INFORMATION DETAILS

           

Information Gathered by :

PLK

 

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

69

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

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NB

                                       New Business

 

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

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