MIRA INFORM REPORT

 

 

Report Date :

14.05.2014

 

IDENTIFICATION DETAILS

 

Name :

WELSPUN SYNTEX LIMITED

 

 

Registered Office :

Survey No. 394(P), Saily, Silvassa, Union Territory of  Dadra and Nagar Haveli, Daman and Diu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

31.03.1983

 

 

Com. Reg. No.:

56-000045

 

 

Capital Investment / Paid-up Capital :

Rs.392.396 Millions

 

 

CIN No.:

[Company Identification No.]

L99999DN1983PLC000045

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

SRTW00080D

MUMW02090E

MUMM25361A

 

 

PAN No.:

[Permanent Account No.]

AAACW0489L

 

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer and Exporter of Polyester Texturised Filament Yarn, Nylon Filament Yarn, etc.

 

 

No. of Employees :

800 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 4300000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record.

 

General financial position of the company seems to be decent. Profitability of the company is fair.

 

Trade relations are fair. Business is active. Payment terms are reported to be usually correct.

 

The company can be considered for business dealings at usual trade terms and conditions. 

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

 

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

 

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

 

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

 

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

 

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

 

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

 

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

 

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

 

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

BBB (Long Term Bank Facilities)

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

29.10.2013

 

Rating Agency Name

CARE

Rating

A3+ (Short Term Bank Facilities)

Rating Explanation

Moderate degree of safety and higher credit risk.

Date

29.10.2013

 

 

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 (GENERAL DETAILS)

 

Name :

Ms. Antima Rai

Designation :

Admin.

Contact No.:

91-260-2640596

Date :

07.05.2014

 

 

LOCATIONS

 

Registered Office/ Factory 1 :

Survey No.394(P), Saily, Silvassa, Union Territory of  Dadra and Nagar Haveli, Daman and Diu, India

Tel. No.:

91-260-2640596/ 2640599

Fax No.:

91-260-2640597

E-Mail :

welspun@vsnl.com

kaushik_kapasi@welspun.com

Website :

www.welspunsyntex.com

Location:

Owned

 

 

Corporate Office  :

9th Floor, Trade World, “B” Wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

Tel No.:

91-22-24908000/ 01/ 02/ 03 /04/ 66136000

Fax No.:

91-22-24908020/ 21

E-Mail :

welspun@bom5.vsnl.net.in

nilesh_javkar@welspun.com

Website :

http://www.welspunsyntex.com

 

 

Factory 2 :

Palghar Plant:

Plot No.14/15, Dewan Industrial Estate, Palghar, District Thane, Maharashtra, India

Tel. No.:

91-952525-252772/ 252662

Fax No.:

91-952525-250749

 

 

Marketing Office :

3001/3002, 3rd Floor, Jash Tex and Yarn Market, 1-Ring Road, Surat - 395002, Gujarat, India

Tel. No.:

91-261-2327863/ 2336125

Fax No.:

91-261-2312604

 

 

DIRECTORS

 

As on 31.03.2013

 

Name :

Mr. B.K. Goenka

Designation :

Chairman

 

 

Name :

Mr. R.R. Mandawewala

Designation :

Director

 

 

Name :

Mr. B.A. Kale

Designation :

Executive Director (with effect from 30.10.2010)

 

 

Name :

Mr. Atul Desai

Designation :

Director

 

 

Name :

Mr. Raj Kumar Jain

Designation :

Director

 

 

Name :

Mr. M.K. Tandon

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. K. N. Kapasi

Designation :

Company Secretary

 

 

Name :

Ms. Antima Rai

Designation :

Admin.

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2014

 

Category 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

35429

0.09

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

25658167

65.39

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

25693596

65.48

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

 

 

Total shareholding of Promoter and Promoter Group (A)

25693596

65.48

(B) Public Shareholding

 

 

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

 

 

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

105

0.00

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

8231936

20.98

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

228837

0.58

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

0

0.00

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

8460878

21.56

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

 

 

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

575878

1.47

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

2863439

7.30

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

1280268

3.26

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

365509

0.93

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

234140

0.60

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

71566

0.18

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

4302

0.01

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

55501

0.14

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

5085094

12.96

Total Public shareholding (B)

13545972

34.52

Total (A)+(B)

39239568

100.00

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

 

 

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)

39239568

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Polyester Texturised Filament Yarn, Nylon Filament Yarn.

 

 

Exports :

 

Products :

Finished Goods

Countries :

·         Bangladesh

Turkey

 

 

Terms :

 

Selling :

L/C and Credit

 

 

Purchasing :

L/C and Credit

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

800 (Approximately)

 

 

Bankers :

·         Bank of Baroda, Silvasa, Dadra and Nagar Haveli

Tel. No.: 91-260-2640352

·         State Bank of Bikaner and Jaipur

IDBI Bank Limited

Central Bank of India

State bank of India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

31.03.2013

31.03.2012

 

LONG TERM BORROWINGS

 

 

Term Loans from Banks

 

 

Rupee Loans

300.703

434.619

Foreign Currency Loans

544.364

64.824

Buyer's Credit from Banks

109.900

100.490

 

 

 

SHORT TERM BORROWINGS

 

 

Working capital loans from Banks

 

 

Rupee Loans

368.020

168.891

Foreign Currency Loans

46.576

43.651

Foreign Currency Loans - Buyers Credit

388.353

83.387

Total

1757.916

895.862

 

NOTES:

 

LONG TERM BORROWINGS

 

(a) Term loan from Banks except (h) below, are secured by way of first charge on immovable and movable assets of the Company, both present and future, ranking pari passu and also secured by second charge on current assets subject to prior charge in favour of banks for working capital facilities.

 

(b) Term loan of Rs. 9.247 Millions (Rs. 30.919 Millions) from Bank of Baroda is carrying interest @ 13.25% p.a. and repayable in 2 quarterly instalments of Rs. 4.334 Millions and balance in last instalment.

 

(c) Term loan of Rs. 7.667 Millions (Rs. 18.067 Millions) from State Bank of Bikaner and Jaipur is carrying interest @ 13.75% p.a. and repayable in 2 quarterly instalments of Rs. 2.600 Millions and balance in last instalment.

 

(d) Term loan of Rs. 300.703 Millions (Rs. Nil) from Industrial Development Bank of India is carrying interest @ 12.50% p.a. and repayable in 28 stepped-up quarterly instalments ranging from 2.5% to 4.75% per quarter of disbursed loan amount commencing from01 April 2014.

 

(e) Term loan of Rs. 8.700 Millions (Rs. 31.000 Millions) from State Bank of India is carrying interest @ 14.00% p.a. and repayable in one quarterly instalment of Rs. 5.500 Millions and balance in last instalment.

 

(f) Term loan of Rs. 52.630 Millions (Rs. 107.051 Millions) from State Bank of Bikaner and Jaipur is carrying interest @ LIBOR+2.75% p.a. and repayable in 5 equal quarterly instalment of Rs. 10.526 Millions.

 

(g) Term loan of Rs. 198.776 Millions (Rs. 213.862 Millions) from State Bank of Bikaner and Jaipur is carrying interest @ LIBOR+2.75% p.a. and repayable in 24 stepped-up quarterly instalments ranging from 2% to 5.625% of disbursed loan amount.

 

(h) Term loan of Rs. 178.642 Millions (Rs. 250.000 Millions) from State Bank of Bikaner and Jaipur is secured by first charge ranking pari passu by way of hypothecation of company's raw material, stock-in-proce ss, finished goods, semi finished goods, stores, spares, book debts and other current assets and second charge ranking pari passu on fixed assets of the Company. It carries

interest @ LIBOR+2.75% p.a. and repayable in 6 equal quarterly instalments of Rs. 31.250 Millions.

 

(i) Term loan of Rs. 287.996 Millions (Rs. Nil) from Bank of Baroda - Dubai is carrying interest @ LIBOR+4.25% p.a. and repayable in 20 stepped-up quarterly instalments ranging from 2.5% to 4.75% of disbursed loan amount commencing from 30 June 2014.

 

(j) Term loan of Rs. Nil (Rs. 18.316 Millions) from State Bank of India was carrying interest @ JPY TIBOR+2% p.a. and has been fully repaid during the year.

 

(k) Term loan of Rs. Nil (Rs. 6.031 Millions) from State Bank of Bikaner and Jaipur was carrying interest @ LIBOR+2.75% p.a. and has been fully repaid during the year.

 

(l) Out of the total term loans Rs. 8.700 Millions (Rs. 49.316 Millions) have been personally guaranteed by the promoter directors.

 

(m) Buyers credit from bank of Rs. 109.899 Millions (Rs. 100.490 Millions ) is secured by pari passu first charge on entire fixed assets of the Company carring interest @ LIBOR+2.50% p.a. and is repayable in maximum period of three year from the date of transaction.

 

 

SHORT TERM BORROWINGS

 

Working capital loans from Banks are secured by way of hypothecation of raw materials, finished goods, goods in process, stores and spares and book debts and second charge by way of mortgage on entire fixed assets of the Company.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

MGB and Company

Chartered Accountants

Address :

Jolly Bhavan No.2, 1st Floor, 7, New Marine Lines, Churchgate, Mumbai – 400020, Maharashtra, India

Tel. No.:

91-22-66332330

Fax No.:

91-22-66351545

E-Mail :

mgbco@mgbco.com

Website :

www.mgbco.com

 

 

Other Related parties :

·         Welspun India Limited

Welspun Corp Limited

Welspun Retail Limited

Welspun Steel Limited

Welspun Wintex Limited

Welspun Global Brands Limited

Welspun Zucchi Textiles Private Limited

Krishiraj Trading Limited

Welspun Realty Private Limited

Goodvalue Polyplast Limited

Welspun Fintrade Limited

Welspun Captive Power Generation Limited

Welpsun Investments and Commercial Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

9,20,00,000

Equity Shares

Rs.10/- each

Rs.920.000 Millions

2,80,00,000

Convertible Cumulative Preference Shares

Rs.10/- each

Rs.280.000 Millions

 

Total

 

Rs.1200.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3,92,39,568

Equity Shares

Rs.10/- each

Rs.392.396 Millions

 

 

 

 

 

NOTE

 

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

 

Equity Shares

2013

No. of Shares

Amount

At the beginning of the year

23,645,027

2364.50

Movements during the year

15,594,541

1559.45

Outstanding at the end of the year

39,239,568

3923.96

 

 

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

 

Preference Shares

2013

No. of Shares

Amount

At the beginning of the year

13,203,300

1026.97

Movements during the year

(13,203,300)

(1026.97)

Outstanding at the end of the year

--

--

 

 

Terms / right attached to equity shares

 

The Company has only one class of equity shares having a par value of Rs. 10 per share. All issued shares rank pari-passu and have same voting rights per share. The Company declares and pays dividend in Indian Rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

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

 

 

Terms of Cumulative Redeemable Preference Shares

 

a) 32,03,300 10% Optionally Convertible Cumulative Preference Shares (OCCPS) of Rs. 10 each fully paid up have been fully redeemed during the year.

 

b) 10,000,000 8% Redeemable Cumulative Preference Shares of Rs. 10 each fully paid up have been fully redeemed during the year.

 

 

Details of shareholders holding more than 5% shares in company

 

Equity Shares

2013

No. of Shares

Percentage (%) Holding

Krishiraj Trading Limited, India

19,525,663

49.76%

Welspun Fintrade Limited, India

4,018,359

10.24%

IFCI Limited

7,741,599

19.73%

 

The Company has allotted on 29 October 2012, 1,60,00,000 6% Optionally Convertible Cumulative Preference shares of Rs.10/- each at par to Krishiraj Trading Limited (allottee), promoter of the Company, which is to be converted into Equiy shares at any time within 18 months from the date of allotment @ Rs. 10.26 per share. The above shares were converted into 1,55,94,541 Equiy shares @ Rs. 10.26 per share on 22 March 2013.

 

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

392.396

339.147

339.147

(b) Reserves & Surplus

682.963

450.116

403.048

(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)

1075.359

789.263

742.195

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

954.967

599.934

283.435

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

66.182

60.910

53.224

Total Non-current Liabilities (3)

1021.149

660.844

336.659

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

815.449

385.929

421.840

(b) Trade payables

565.523

684.325

656.002

(c) Other current liabilities

536.359

434.447

368.281

(d) Short-term provisions

36.399

73.462

6.152

Total Current Liabilities (4)

1953.730

1578.163

1452.275

 

 

 

 

TOTAL

4050.238

3028.270

2531.129

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1347.002

1048.391

1034.867

(ii) Intangible Assets

1.641

0.393

0.215

(iii) Capital work-in-progress

624.128

206.607

74.740

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

150.800

223.360

223.360

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

149.593

163.222

67.645

(e) Other Non-current assets

45.469

48.636

46.610

Total Non-Current Assets

2318.633

1690.609

1447.437

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

737.545

639.709

567.851

(c) Trade receivables

412.115

281.319

370.250

(d) Cash and cash equivalents

78.728

150.045

16.275

(e) Short-term loans and advances

381.991

207.006

89.507

(f) Other current assets

121.226

59.582

39.809

Total Current Assets

1731.605

1337.661

1083.692

 

 

 

 

TOTAL

4050.238

3028.270

2531.129

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

7761.182

6115.505

5029.139

 

 

Other Income

25.047

20.030

14.880

 

 

TOTAL                                     (A)

7786.229

6135.535

5044.019

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

5175.112

4053.534

3325.393

 

 

Purchase of stock in trade

72.611

62.316

0.000

 

 

Changes in inventories of finished goods, goods-in-process and stock in trade

24.599

(63.003)

(62.937)

 

 

Employee benefits expense

337.589

277.357

240.019

 

 

Other expenses

1681.498

1390.150

1199.231

 

 

TOTAL                                     (B)

7291.409

5720.354

4701.706

 

 

 

 

 

Less

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

494.819

415.181

342.313

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

186.470

173.419

107.162

 

 

 

 

 

 

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

308.349

241.762

235.151

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

148.103

126.127

113.947

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

160.246

115.635

121.204

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

(0.089)

(6.930)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

160.246

115.724

128.134

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

143.581

96.513

(31.621)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Dividend on Optionally Convertible Cumulative Preference Shares

(59.072)

59.072

0.000

 

 

Tax on Dividend

(9.584)

9.584

0.000

 

BALANCE CARRIED TO THE B/S

372.483

143.581

96.513

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Exports

1870.200

1372.008

977.310

 

TOTAL EARNINGS

1870.200

1372.008

977.310

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1183.612

719.882

474.070

 

 

Capital Goods

485.150

134.129

43.289

 

 

Stores & Spares

120.870

46.809

60.168

 

TOTAL IMPORTS

1789.632

900.820

577.527

 

 

 

 

 

 

Earnings Per Share (Rs.)

6.23

4.47

4.99

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2013

30.09.2013

31.12.2013

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

2007.400

2418.800

2210.200

Total Expenditure

1874.100

2316.700

2035.300

PBIDT (Excl OI)

133.300

102.200

174.900

Other Income

05.600

05.500

7.900

Operating Profit

139.000

107.600

182.800

Interest

49.800

59.700

58.700

Exceptional Items

0.000

0.000

0.000

PBDT

89.100

48.000

124.200

Depreciation

38.900

46.800

51.200

Profit Before Tax

50.200

1.200

73.000

Tax

0.000

0.000

0.000

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

50.200

1.200

73.000

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

50.200

1.200

73.000

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

2.06

1.89

2.54

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

2.06

1.89

2.41

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.89

4.45

5.43

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.15

0.15

0.16

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.65

1.25

0.95

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.89

0.85

0.75

 

 

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

339.147

339.147

392.396

Reserves & Surplus

403.048

450.116

682.963

Net worth

742.195

789.263

1075.359

 

 

 

 

long-term borrowings

283.435

599.934

954.967

Short term borrowings

421.840

385.929

815.449

Total borrowings

705.275

985.863

1770.416

Debt/Equity ratio

0.950

1.249

1.646

 

 

 

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

5029.139

6115.505

7761.182

 

 

21.601

26.910

 

 

 

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

5029.139

6115.505

7761.182

Profit

128.134

115.724

160.247

 

2.55%

1.89%

2.06%

 

 

 

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

-----

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

Yes

 

 

INDEX OF CHARGES

 

B

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10434382

30/12/2013 *

150,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GROUND FLOOR, WELSPUN HOUSE, KAMALA MILLS COMPOU
ND, S.B.MARG, MUMBAI, MAHARASHTRA - 400001, INDIA

B95161246

2

10434375

20/06/2013

715,400,000.00

STATE BANK OF BIKANER AND JAIPUR

WELSPUN HOUSE, GROUND FLOOR, KAMALA MILLS COMPOUND, S.B.MARG, LOWER PAREL, MAHARASHTRA - 400013, INDIA

B78535796

3

10414631

04/03/2013

942,500,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICE BRANCH, FIRST FLOOR,
3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI,
MAHARASHTRA - 400001, INDIA

B71756605

4

10397520

09/01/2013

100,000,000.00

STATE BANK OF BIKANER AND JAIPUR

WELSPUN HOUSE, GROUND FLOOR, KAMALA MILLS COMPOUND, S. B. MARG, LOWER PAREL, MUMBAI, MAHARASHTRA
- 400013, INDIA

B66074808

5

10389103

05/11/2012

470,000,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI, MAHARASHTRA - 400001, INDIA

B63020044

6

10374114

30/12/2013 *

160,000,000.00

CENTRAL BANK OF INDIA

CORPORATE FINANCE BRANCH, 1ST FLOOR, MMO BUILDING,
M G ROAD, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA

B96172739

7

10374558

30/12/2013 *

470,000,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI, MAHARASHTRA - 400001, INDIA

B96755483

8

10363603

30/12/2013 *

500,000,000.00

IDBI BANK LIMITED

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

B94779220

9

10310958

30/12/2013 *

350,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD, DANA BUNDER, MASJID (EAST), MUMBAI, MAHARASHTRA - 400009, INDIA

B95161188

10

10299300

30/12/2013 *

81,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD, DANA BUNDER, MASJID (EAST), MUMBAI, MAHARASHTRA - 400009, INDIA

B96178785

11

10246936

08/10/2010

50,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD, DANA BUNDER, MASJID (EAST), MUMBAI, MAHARASHTRA - 400009, INDIA

A97014567

12

10234411

30/12/2013 *

219,100,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD, DANA BUNDER, MASJID (EAST), MUMBAI, MAHARASHTRA - 400009, INDIA

B96179239

13

10112083

21/11/2011 *

468,500,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD, DANA BUNDER, MASJID (EAST), MUMBAI, MAHARASHTRA - 400009, INDIA

B26651638

14

10081823

30/12/2013 *

237,600,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD, DANA BUNDER, MASJID (EAST), MUMBAI, MAHARASHTRA - 400009, INDIA

B96178397

15

10004191

03/12/2013 *

63,400,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI, MAHARASHTRA - 400001, INDIA

B93821452

16

80040558

30/03/2002

22,200,000.00

AXIS BANK LIMITED

MAKER TOWER-'F', CURRE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

-

17

80040561

20/12/2013 *

1,601,500,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI, MAHARASHTRA - 400001, INDIA

B95529293

18

80040612

01/04/1995 *

90,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ , DANA BUNDER, MUMBAI, MAHARASHTRA - 400009, INDIA

-

19

80040562

16/08/1994

17,500,000.00

STATE BANK OF BIKANER AND JAIPUR

73, SANT TUKARAM ROAD, DANA BUNDER, MUMBAI, MAHARASHTRA - 400009, INDIA

-

 

* Date of charge modification

 

 

UNSECURED LOAN

(Rs. In Millions)

Particulars

As on

31.03.2013

As on

31.03.2012

SHORT TERM BORROWINGS

 

 

Inter Corporate Deposit

12.500

90.000

Total

12.500

90.000

 

NOTES:

 

SHORT TERM BORROWINGS

 

·         Intercorporate deposits of Rs. 12.500 Millions (Rs. Nil) carries interest @ 9% p.a.

 

·         Intercorporate deposits of Rs. Nil (Rs. 90.000 Millions) is interest free and have been fully repaid during the year.

 

 

CORPORATE INFORMATION

 

Subject is a Company incorporated under the Companies Act, 1956. Subject was established in 1983. Since its inception, it has grown manifold and today is amongst the largest manufacturers and exporters of Polyester Texturised Filament Yarn, Nylon Filament Yarn from India.

 

 

OPERATIONS

 

During the year, Net sales and services and Gross Profit before Interest and Depreciation were of Rs. 7761.182 Millions and Rs. 494.819 Millions respectively as compared to Rs. 6115.505 Millions and Rs. 415.181 Millions respectively for the previous year. Net sales and services of the Company and Gross Profits have thus increased by 26.90% and 19.18% respectively over the previous year.

 

Exports during the financial year 2012-13 were of Rs. 2133.530 Millions as compared to Rs. 1423.646 Millions during the previous year, registering increase by 49.86%.

 

Power cost is increased due to increase in power tariff both in Palghar, Maharashtra as well as at Rakholi, Silvassa. Interest cost has been increased due to rise in rate of interest and increase in borrowing for working capital. Foreign exchange difference losses were of Rs. 11.559 Millions during the financial year 2012-13 in view of fluctuation in foreign exchange. The Company has developed market for carpet yarn, yarn for Bath rugs, and spandex covered yarn for denim industry.

 

 

EXPANSION

 

The Company is under major expansion at total capital outlay of Rs. 1683.700 Millions so as to increase capacity of texturized yarn, spinning capacity of POY/FDY/mother yarn splitting (mother yarn-polyester) capacities, Dyed texturised yarn and introducing BCF (Bulk Continuous Filament) Yarn which is useful for making Carpets.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE, SCENARIO AND DEVELOPMENT

 

Global financial crisis, high rates of interest and growth rate and reduction in private final consumption expenditure have impacted investment and have slowed down growth to 6.2% and 5% respectively in the year 2011-12 and 2012-13.The rate of growth of the manufacturing sector was even lower at 2.7 per cent and 1.9 per cent for these two years respectively. Both public and private investment declined as a share of GDP. Increase in policy rate which increased cost of borrowings, lower demand for Indian exports, policy bottlenecks (such as obtaining environmental permissions, fuel linkages, or carrying out land acquisition) led to a number of large projects becoming stalled. The government has been battling a number of problems, including a widening current

account deficit, currency depreciation and high inflation.

 

India's economic woes are hurting polyester demand. The current account deficit was at 4.3% at the end of 2011, up from 2.3% a year earlier. And the rupee has depreciated by more than 20% in the past year. Foreign investor confidence in the economy has weakened as much-needed economic reforms have been put on hold.

 

Indian polyester producers face turbulent times as excess capacity and a slowing economy have dragged down demand and profitability. Their margins have been squeezed since April 2011 and the situation has not shown any improvement this year.

 

Sales have been poor since April and margins have been bad. The Indian economy's slowdown has affected demand. Also cotton is abundantly available and capping the top end of [polyester] prices.

 

The near-term outlook remains bleak as the fragile economic environment could continue until 2014 when the next general elections take place, say industry players.

 

One of the key concerns for polyester producers is inflation, which has been running at 6-8% for more than a year. That has hurt demand as the priority for people has been food over clothing and the impact of this has trickled upwards to dampen polyester demand.

 

The high excise duty of 12% on Synthetic Fibres has created a huge gap between Synthetics and Cotton which is contrary to the principle of “Fiber Neutrality” envisaged in the National Fibre Policy. This has also resulted in deceleration in growth bringing down the capacity utilization from 85% when Excise Duty was 4% to a low of 65% - 70% in 2012-13 when the Excise Duty has been raised to 12%.

 

Besides the economy, a third producer also cites rampant capacity expansion in the past couple of years as a factor behind the current margin pressure. Expansion in polyester has been outpacing that of the downstream spinning and textile sectors.

 

Indian polyester capacity increased by 30% in fiscal 2011-12 and will rise by another 40-45% by the end of fiscal 2012-13. Demand during this period is likely to grow by only 15-18%.

 

Spinners looking to back integrate operations have been responsible for most of the capacity additions courtesy of the availability of cheap equipment and technology from China on easy financing terms.

 

Given the anemic domestic market polyester producers have been forced to boost exports despite lower realization.

 

During FY 2012 – 13 (April-December, 2012), all the subsectors have shown positive growth ranging from 1% - 19% except production of filament yarn which showed a decrease in production by 2%. The cloth production in Handloom sector remained the same during the period.

 

Textiles exports were US $ 21.58 billion during Apr – Dec’ 12 as compared to US $ 23.29 billion during corresponding period of the previous year, registering a decline of 7.3 percent.

 

The recent global slowdown has however impacted the prospects of this sector also.

 

Technology Up gradation Fund Scheme (TUFS) is continued in 12th Plan with an investment target of Rs. 1510000.000 Millions.

 

As per the latest available data released by WTO Secretariat for the calendar year 2009, 2010 and 2011 the share of Indian textiles and clothing exports in World’s exports were 3.98%, 3.98% and 4.11% respectively and has not been declining.

 

But China too has been adding polyester capacity and has emerged as a major exporter, selling 788,000 tonnes of polyester staple fiber (PSF), 668,000 tonnes of polyester filament yarn (PFY) and 956,000 tonnes of polyethylene terephthalate (PET) bottle-grade chips in the international market in 2011.

 

India’s textile and garment exports dropped 8.6% in the first half of the current fiscal, representing less than one-third of the full year target of $40.59 billion, according to the latest official data. With the slowdown in top markets such as the US and the EU – which accounts for around 65% of the export basket of the segment – the lofty target for 2012-13 is all set to be missed.

 

But, China, a major textile producer for about two decades, is now focusing on other sectors. It is expected this would change the fortunes of other textile producers such as India and Bangladesh.

 

 

OUTLOOK

 

The Company is under major expansion. It has already increased capacity of texturised yarn, mother yarn splitting

(mother yarn-polyester) capacities and introducing BCF (Bulk Continuous Filament) Yarn which is useful for making Carpets. This has resulted in increase in turnover of the Company and it expects further increase on completion of expansion during the year 2013-14.

 

 

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

 

PART I

(Rs. in Millions)

 

Particulars

(Unaudited)

Quarter Ended

31.12.2013

30.09.2013

31.12.2013

Net Sales/Income from Operations

2167.013

2375.317

6510.489

Other Operating Income

43.200

43.514

125.940

Net Sales/ Income from Operations

2210.213

2418.831

6634.429

Total Expenditure

 

 

 

Cost of materials consumed

1500.046

1729.182

4544.532

Purchase of Traded Goods

--

--

--

Change in inventories of finished goods, goods-in-process and stock-in-trade

(20.042)

(28.938)

(18.746)

Employees benefits expense

109.874

95.732

293.493

Depreciation and Amortisation expenses

51.186

46.780

136.891

Other Expenses

445.407

520.703

1406.761

Total

2086.471

2363.459

6362.931

Profit from Operations before Other Income .finance costs and exceptional items (1-2)

123.741

55.372

 

273.498

Other Income

7.903

5.451

18.997

Profit from ordinary activities before finance cost and exceptional items (3+4)

131.644

60.823

 

292.495

Finance Costs

58.678

59.646

168.144

Profit from ordinary activities after finance costs but before exceptional items (5+6)

72.966

1.177

 

124.351

Exceptional items

--

--

--

Profit from ordinary activities before tax(7±8)

72.966

1.177

124.351

Tax Expenses  

14.578

0.167

24.787

Current year

 

 

 

Earlier years

 

 

 

Less : MAT Credit Entitlement

(14.578)

(0.167)

(24.787)

Net Profit from ordinary activities after tax (9±10)

72.966

1.177

124.351

Net Profit for the period

72.966

1.177

124.351

Paid up Equity Capital (Face Value of Rs. 10/- each)

392.396

392.396

392.396

Reserves excluding Revaluation Reserve

 

 

 

Earning per share (* Not Annualised)

 

 

 

a) Basic

1.86*

0.03*

3.17*

b) Diluted

1.86*

0.03*

3.17*

 

 

 

 

PART II - SELECT INFORMATION FOR THE QUARTER/NINE MONTHS ENDED 31 DECEMBER 2013

 

 

 

 

PARTICULARS OF SHAREHOLDING

 

 

 

Public Shareholding

 

 

 

a) Number of shares

13545972

13545972

13545972

b) Percentage of shareholding

34.52%

34.52%

34.52%

Promoters and Promoters Group Shareholding as on

 

 

 

a. Pledged/Encumbered

 

 

 

No of Shares

Nil

Nil

Nil

Percentage of Shares (as a % of the total Shareholding of Promoters & Promoter Group)

Nil

Nil

Nil

Percentage of Shares (as a % of the total Share capital of the company)

Nil

Nil

Nil

b. Non-Encumbered

 

 

 

No of Shares

25693596

25693596

25693596

Percentages of Shares (as a % of the total Shareholding of Promoters & Promoter Group)

100.00%

100.00%

100.00%

Percentages of Shares (as a % of the total Share capital of the company)

65.48%

65.48%

65.48%

 

 

 

 

INVESTOR COMPLAINTS (Nos.)

Pending at the beginning of the quarter

0

0

 

Received during the quarter

1

0

 

Disposed of during the year

1

0

 

Remaining unresolved at the end of the quarter

0

0

 

 

NOTES :

 

Other expenses for the quarter and nine months ended 31 December 2013 includes foreign exchange gain (net) of Rs. 8.082 Millions and a loss (net) of Rs. 76.041 Millions respectively.

 

The above results were reviewed and recommended by the Audit Committee and taken on record by the Board of Directors in its meeting held on 12 February 2014 in terms of Clause 41 of the Listing Agreement.

 

The Statutory Auditors have carried out a Limited Review of the above results for the quarter/nine months ended 31 December 2013

 

The Company has only one segment of activity viz Synthetic Yarn.

 

Previous year's/Period's figures have been regrouped and reclassified wherever considered necessary.

 

 

FIXED ASSETS

 

Tangible Assets

·         Freehold Land

·         Buildings

·         Plant and Machinery

·         Vehicles

·         Furniture and Fixture

·         Equipments

·         Computers

 

Intangible Assets

·         Software

 

 

AS PER WEBSITE DETAILS:

 

PRESS RELEASE:

 

UNANIMOUS APPROVAL OF SHAREHOLDERS AND CREDITORS FOR THE DEMERGER OF WELSPUN CORP LIMITED

 

Mumbai, October 22, 2013: Welspun Corp Limited (WCL), the flagship Company of the $ 3.5 billion Welspun Group today announced that its shareholders and creditors have unanimously approved the “Scheme of Arrangement” under which the “Other Businesses” undertaking is being demerged into Welspun Enterprises Limited. The meeting was conducted as per the directions of the Hon’ble High Court of Gujarat. The scheme is also subject to the sanction by the Hon’ble High Court of Gujarat.

 

Post demerger, Welspun Enterprises Limited shall comprise of Steel, Infrastructure, Oil and Gas exploration and Energy businesses while Welspun Corp Limited , will now solely focus on Pipe and Plates business in India and globally.

 

Through this demerger, Welspun Group aims to create two focused, independently run companies, Welspun Corp Limited and Welspun Enterprises Limited with enhanced value creation across each business. The demerger will also better enable the management team to protect, grow and nurture each line of business in a more distinct manner, bring more clarity on each business to pursue its strategic objectives and enhance shareholder value.

 

 

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.59.88

UK Pound

1

Rs.100.98

Euro

1

Rs.82.40

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MRI

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

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

 

45

 

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.