MIRA
INFORM REPORT
|
Report Date : |
26.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
GRASIM INDUSTRIES LIMITED (w.e.f. 22.07.1986) BIRLA CELLULOSIC – A unit of GRASIM INDUSTRIES LIMITED |
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Formerly Known
As : |
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Registered
Office : |
Birlagram, Nagda, ujjain – 456 331, Madhya Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
25.08.1947 |
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Com. Reg. No.: |
10-000410 |
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Capital
Investment / Paid-up Capital : |
Rs.917.900 Millions |
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CIN No.: [Company Identification
No.] |
L17124MP1947PLC000410 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BPLG00117F/
BPLG00021A/ BPLG01651G |
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PAN No.: [Permanent Account No.] |
AAACG4464B |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
The subject is continuously engaged in the process of energy conservation through improved operational and maintenance practices. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 400000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having fine track
record. The rating reflects strong financial risk profile marked by strong
liquidity position and decent profitability of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be reported to be regular and as per commitments. The company can be considered good for normal 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 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
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 Millions (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 Millions 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 Millions.
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 |
CRISIL |
|
Rating |
Long Term Bank Facilities = AAA |
|
Rating Explanation |
Highest degree of safety and carry lowest
credit risk. |
|
Date |
14.10.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Bank Facilities = A1+ |
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Rating Explanation |
Strong degree of safety and low credit risk.
|
|
Date |
14.10.2013 |
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
|
Name : |
Mr. Krishna Gopal |
|
Designation : |
Accounts Executive |
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Contact No.: |
91-22-24995000 |
|
Date : |
21.05.2014 |
LOCATIONS
|
Registered Office : |
Birlagram, Nagda, ujjain – 456331, Madhya Pradesh, India |
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Tel. No.: |
91-7366-246760/ 62/ 64/ 66 / 256556 |
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Fax No.: |
91-7366-244114/ 246024 |
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E-Mail : |
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Website : |
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Corporate Office : |
91, Sakhar Bhavan, 230, Nariman Point, Mumbai – 400021, Maharashtra,
India |
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Tel. No.: |
91-22-22819520 |
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Fax No.: |
91-22-22284629 |
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Administrative Office: |
Staple Fiber Division, Century Bhawan, 3rd Floor, |
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Tel. No.: |
91-22-24210182-86/ 22025012/ 24210182/ 24303169/ 22043451/ 65991600 |
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Fax No.: |
91-22-24220892 |
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Plants : |
FIBRE, PULP
CHEMICAL AND TEXTILES PLANTS Staple Fibre
Division Birlagram, Nagda – 456 331, Madhya Pradesh, India Tel. No. 91-7366-246760-246766 Fax No. 91-7366-244114/246024 Harihar
Polyfibres and Grasilene Division Harihar, District Haveri, Kumarapatnam – 581 123, Karnataka, India Tel. No. 91-8373-232637-39 Fax No. 91-8373-232465/ 232875 91-8192-247555 Birla Cellulosic Birladham, Kharach, Kosamba 394 120, District Bharuch, Gujarat, India Tel. No. 91-2629-270001/5 Fax No. 91-2629-270010/270310 Grasim Cellulsic
Division Plot no.1, GIDC, Vilayat Industrial Estate P. O. Vilayat, Taluka
Vagra, District Bharuch – 392012, Chemical Plants Chemical
Division Birlagram 456 331, Nagda, Madhya Pradesh, India Tel No. : 91-7366 245501 – 03 Fax No. : 91-7366 246767 / 245845 Grasim Chemical
Division Plot No.1, GIDC, Vilayat Industrial Estate P. O. Vilayat, Taluka
Vagra, District Bharuch – 392012, Textile Plant Vikram Woollens GH I to IV, Ghironghi Malanpur–477 117, District Bhind, Madhya
Pradesh, India Tel.: 91-7539-283602 / 283603 Fax: 91-7539-283339 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Kumar Mangalam Birla |
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Designation : |
Chairman |
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Name : |
Mrs. Rajashree
Birla |
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Designation : |
Director |
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Qualification : |
BA |
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Name : |
Mr. Madhav L. Apte
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Designation : |
Director |
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Qualification : |
BA |
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Name : |
Mr. B. V.
Bhargava |
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Designation : |
Director |
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Qualification : |
Commerce Law |
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Name : |
Mr. R. C.
Bhargava |
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Designation : |
Director |
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Qualification : |
Mathematics |
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|
Name : |
Mr. Cyril Shroff |
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Designation : |
Director |
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Name : |
Dr. Thomas M.
Connelly |
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Designation : |
Director |
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Qualification : |
PHD Chemical
Engineering |
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|
Name : |
Mr. Shailendra K. Jain |
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Designation : |
Whole Time Director |
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Name : |
Mr. N. Mohan Raj (w.e.f. 21st June, 2012) |
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Designation : |
Director |
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Name : |
Mr. D. D. Rathi |
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Designation : |
Director |
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Name : |
Mr. Mr. Adesh
Gupta |
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Designation : |
Whole Time
Director |
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Name : |
Mr. K K
Maheshwari |
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Designation : |
Managing Director
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KEY EXECUTIVES
|
Name : |
Mr. Ashok Malu |
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Designation : |
Company Secretary |
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|
Name : |
Mr. Adesh Gupta |
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Designation : |
Manager and Chief Financial Officer |
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Fibre and Pulp
Business |
|
Name : |
Mr. K.K. Maheshwari |
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Designation : |
Business Director |
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Name : |
Mr. S.K. Saboo |
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Designation : |
Group Advisor, Chairman’s Office |
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Name : |
Dr. Prakash Maheshwari |
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Designation : |
Chief Operating Officer (India) and Head (Projects) |
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Name : |
Mr. Vijay Kaul |
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Designation : |
Group Executive President (Marketing) and Head-Pulp Operations |
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Name : |
Mr. Vinod Tiwari |
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Designation : |
Chief Operating Officer (Pulp Operations) |
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Name : |
Dr. Aspi Patel |
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Designation : |
Chief Technology Officer |
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Name : |
Mr. Rajeev Gopal |
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Designation : |
Chief Marketing Officer |
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Name : |
Dr. Raju Mistry |
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Designation : |
Chief People Officer |
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Cement Business |
|
Name : |
Mr. O.P. Puranmalka |
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Designation : |
Business Head |
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Name : |
Mr. R.K. Shah |
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Designation : |
Group Executive President and CMO (Mfg. and Projects) |
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Name : |
Mr. S.N. Jajoo |
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Designation : |
Chief Marketing Officer |
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Name : |
Mr. K.C. Birla |
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Designation : |
Sr. Executive President (Finance) |
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Chemical Business |
|
Name : |
Mr. Lalit Naik |
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Designation : |
Business Head |
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Name : |
Mr. K.C. Jhanwar |
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Designation : |
Group Executive President |
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Name : |
Mr. G.K. Tulsian |
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Designation : |
Executive President |
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Textile Business |
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Name : |
Mr. Thomas Varghese |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. S. Krishnamoorthy |
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Designation : |
President |
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Name : |
Mr. Man Mohan Singh |
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Designation : |
Unit Head (Grasim Bhiwani Textiles Limited) |
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Corporate Finance
Division |
|
Name : |
Mr. Pavan K. Jain |
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Designation : |
Executive President |
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|
Name : |
Mr. Hemant K. Kadel |
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Designation : |
Executive President |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
Individuals / Hindu Undivided Family |
3231050 |
6.91 |
|
|
31823750 |
68.05 |
|
|
35054800 |
74.96 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
35054800 |
74.96 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
11641270 |
24.89 |
|
|
|
|
|
|
24680 |
0.05 |
|
|
43000 |
0.09 |
|
|
11708950 |
25.04 |
|
Total Public shareholding (B) |
11708950 |
25.04 |
|
Total (A)+(B) |
46763750 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
46763750 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The subject is continuously engaged in the process of energy conservation through improved operational and maintenance practices. |
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
1. Viscose Staple Fibre/ Polynosic HWM/Hi Performance/ Speciality Fibre |
Tonnes |
333975 |
305087 |
|
2. Sulphuric Acid (Captive and Intermediate Product) |
Tonnes |
297850 |
253622 |
|
3. Carbon-di-Sulphide (Captive and Intermediate Products) |
Tonnes |
61800 |
54221 |
|
4. Rayon Grade Pulp (At Mavoor and Harihar) |
Tonnes |
70000 |
73360 |
|
5. Rayon Grade Caustic Soda |
Tonnes |
258000 |
242037 |
|
6. Stable Beaching Powder |
Tonnes |
29436 |
25672 |
|
7. Man-Made Fibre Fabrics |
Mtr. (in 000’s) |
8832 Spindles |
2284 |
|
8. Industrial Machinery |
Tonnes |
15950 |
## |
|
9. Poly Aluminium Chloride |
Tonnes |
36000 |
37661 |
|
10. Chloro Sulphonic Acid |
Tonnes |
23400 |
14723 |
Notes:
a) Licensed capacity not indicated due to abolition of industrial licenses under The Industries (Development and Regulation) Act, 1951
b) The Installed Capacities are certified by the Management and accepted by the Auditors as correct, being a technical matter.
c) # Includes third party processing.
d) ## Quantitative data can not be given as production represents fabrication, machining, etc. against individual orders for made to order machines/equipment.
e) @ Pursuant to scheme of demerger of Cement business of the Company, the related installed capacity is transferred to Samruddhi Cement Limited but has been disclosed above.
f) *Related installed capacity is transferred pursuant to scheme of sale of Sponge Iron unit but has been disclosed above.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of ·
EXIM ·
Hongkong Bank, · IDBI Bank · ICICI Bank Limited ·
Mashreq Bank, ·
Standard Chartered Grindlays Bank, ·
British Bank of Middle East, Dubai |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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Statutory Auditors 1 : |
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|
Name : |
G P Kapadia and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
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Statutory Auditors 2 : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
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Branch
Auditors : |
|
|
Name: |
Vidyarthi and Sons Chartered Accountants |
|
Address: |
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|
Solicitors: |
· Amarchan and Mangaldas and Suresh A Shroff and Company |
|
|
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|
Subsidiaries : |
·
Sun God Trading and Investments Limited ·
Samruddhi Swastik Trading and Investments Limited
·
Grasim Bhiwani Textiles Limited ·
Aditya Birla Power Ventures Limited (w.e.f. 29th
July, 2011) ·
UltraTech Cement Limited |
|
|
|
|
Sub-Subsidiaries : |
·
UltraTech Cement Lanka Private Limited, Sri Lanka
·
Dakshin Cement Limited ·
Harish Cement Limited ·
UltraTech Cement Middle East Investment Limited,
Dubai, UAE ·
Star Cement Co. LLC, Dubai, UAE ·
Star Cement Co. LLC, RAK, UAE ·
Al Nakhla Crusher LLC, Fujairah, UAE ·
Arabian Cement Industry LLC, Abu Dhabi, UAE ·
Arabian Gulf Cement Co. WLL, Bahrain ·
Emirates Power Company Limited, Bangladesh ·
Emirates Cement Bangladesh Limited, Bangladesh ·
PT UltraTech Mining Indonesia, Indonesia (w.e.f.
12th April, 2011) ·
UltraTech Cement SA (PTY), South Africa (w.e.f.
9th April, 2011) ·
UltraTech Cement Mozambique Limitada, Mozambique
(w.e.f. 22nd February, 2012) ·
PT UltraTech Investments Indonesia, Indonesia
(w.e.f. 26th March, 2012) · PT UltraTech Cement, Indonesia (w.e.f. 16th July, 2012) ·
Gotan Lime Stone Khanij Udyog Private Limited
(w.e.f. 23rd July, 2012) |
|
|
|
|
Joint Ventures : |
·
A.V. Cell Inc., Canada ·
A.V. Nackawic Inc., Canada ·
Birla Jingwei Fibres Company Limited, China ·
Birla Lao Pulp and Plantations Company Limited,
Laos ·
Aditya Birla Elyaf Sanayi Ve Ticaret Anonim
Sirketi,Turkey (w.e.f. 30th December, 2011) ·
Bhubaneswari Coal Mining Limited (w.e.f. 21st
September, 2010) · A.V. Terrace Bay Inc., Canada (w.e.f. 12th July, 2012) ·
Aditya Group AB, Sweden (w.e.f. 1st October,
2012) (Note 2.12.5) |
|
|
|
|
Associates : |
·
Aditya Birla Science and Technology Company
Limited ·
Idea Cellular Limited ·
Aditya Group AB, Sweden (w.e.f. 30th
September, 2012) |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
95000000 |
Equity Shares |
Rs.10/- each |
Rs.950.000 Millions |
|
150000 |
15% “A” Series - Redeemable Cumulative
Preference Shares |
Rs.100/- each |
Rs.15.000 Millions |
|
100000 |
8.57% “B” Series
- Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.10.000 Millions |
|
300000 |
9.30% “C” Series
- Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.30.000 Millions |
|
|
TOTAL |
|
Rs.1005.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
91776533 |
Equity Shares |
Rs.10/- each |
Rs.917.800 Millions |
|
|
Share Capital
Suspense 14,879 (14,906) Equity Shares of Rs.10 each to be issued
as fully paid-up pursuant to acquiring of Cement Business of Aditya Birla
Nuvo Limited under the Scheme of Arrangement without payment being received
in cash |
|
Rs.0.100 Millions |
|
|
Total |
|
Rs.917.900 Millions
|
Reconciliation of the
Number of Equity Shares Outstanding (including Share Capital Suspense)
|
Particular |
Number of Shares |
|
Outstanding as at the beginning of the year |
91724648 |
|
Issued during the year under Employee Stock Option Scheme |
66764 |
|
Outstanding as at
the end of the year |
91791412 |
|
|
|
|
Aggregate number of Equity Shares allotted as fully paid-up out of Share Capital Suspense Account as aforesaid during the period of five years immediately preceding the reporting date (without payment being received in cash) |
378 |
List of Shareholders holding
more than 5% shares in the Equity Share Capital of the Company:
|
Particular |
Number of Shares |
|
Turquoise Investment and Finance Private Limited |
5908341 |
|
Trapti Trading and Investments Private Limited |
5477863 |
|
Life Insurance Corporation of India |
5375364 |
|
|
|
|
Equity Shares of Rs.10 each represented by Global Depository Receipts (No voting rights) |
12997155 |
Rights, Preferences
and Restrictions attached to Equity Shares:
The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares dividend in Indian Rupees. 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 of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.
219,170 (219170)
Equity Shares of Face Value of Rs. 10 each are reserved for issue under
Employee Stock Option Scheme, 2006 (ESOS-2006)
Under the ESOS-2006,
the Company has granted 295,474 Options to its eligible employees in four
tranches, the details of which are given hereunder:
|
|
I |
II |
III |
IV |
|
No. of Options Granted |
201,530 |
16,610 |
71,297 |
6,037 |
|
Grant Date |
23rd Aug, |
25th Jan |
30th Aug, |
2nd June |
|
Grant Price (Rs. Per Share) |
1,928 |
2,885 |
1,440 |
1,594 |
|
Revised Grant Price* |
1,523 |
2,279 |
N.A. |
N.A. |
|
Market Price on the Date of Grant (Rs.) |
2,728 |
2,885 |
2,018 |
2,330 |
|
Method of Accounting |
Intrinsic Value |
|||
|
Graded Vesting Plan |
25% every year, commencing one year from the date of grant |
|||
|
Normal Exercise Period |
5 years from the date of vesting |
|||
* The Grant Price in respect of Tranche I and II was revised in the Financial Year 2010-11 as per the Scheme of Demerger of Cement Business.
Movement of Options
Granted
|
Particular |
Number of Options |
|
Outstanding at the beginning of the year |
219170 |
|
Granted during the year |
-- |
|
Exercised during the year |
66764 |
|
Lapsed during the year |
-- |
|
Outstanding at the end of the year |
152406 |
|
Options: Unvested at the end of the year |
40176 |
|
Exercisable at the end of the year |
112230 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND
LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
917.900 |
917.200 |
|
(b) Reserves & Surplus |
|
100300.700 |
90076.700 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
101218.600 |
90993.900 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
9809.200 |
5673.400 |
|
(b) Deferred tax liabilities (Net) |
|
3439.100 |
2392.400 |
|
(c) Other long term liabilities |
|
129.100 |
121.200 |
|
(d) long-term provisions |
|
434.400 |
390.400 |
|
Total Non-current Liabilities (3) |
|
13811.800 |
8577.400 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
1908.200 |
630.000 |
|
(b) Trade payables |
|
3456.900 |
2950.500 |
|
(c) Other current liabilities |
|
5396.500 |
2900.600 |
|
(d) Short-term provisions |
|
4725.700 |
4308.300 |
|
Total Current Liabilities (4) |
|
15487.300 |
10789.400 |
|
|
|
|
|
|
TOTAL |
|
130517.700 |
110360.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
20702.500 |
15471.100 |
|
(ii) Intangible Assets |
|
17.100 |
14.200 |
|
(iii) Capital work-in-progress |
|
24250.900 |
4769.400 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
45188.100 |
44744.500 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
4394.500 |
6142.700 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current Assets |
|
94553.100 |
71141.900 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
17056.200 |
23552.900 |
|
(b) Inventories |
|
7893.400 |
6309.100 |
|
(c) Trade receivables |
|
5166.300 |
5092.300 |
|
(d) Cash and cash equivalents |
|
162.700 |
110.200 |
|
(e) Short-term loans and advances |
|
5420.100 |
3918.700 |
|
(f) Other current assets |
|
265.900 |
235.600 |
|
Total Current Assets |
|
35964.600 |
39218.800 |
|
|
|
|
|
|
TOTAL |
|
130517.700 |
110360.700 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
917.200 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
80320.700 |
|
|
4] Employee Stock Option Outstanding |
|
|
99.500 |
|
|
5] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
81337.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
5562.100 |
|
|
2] Unsecured Loans |
|
|
2575.400 |
|
|
TOTAL BORROWING |
|
|
8137.500 |
|
|
DEFERRED TAX LIABILITIES |
|
|
2298.200 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
91773.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
15418.100 |
|
|
Capital work-in-progress |
|
|
1009.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
69102.500 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
4216.500 |
|
|
Sundry Debtors |
|
|
4787.000 |
|
|
Cash & Bank Balances |
|
|
146.500
|
|
|
Other Current Assets |
|
|
22.000
|
|
|
Loans & Advances |
|
|
5363.800
|
|
Total
Current Assets |
|
|
14535.800
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
2835.000
|
|
|
Other Current Liabilities |
|
|
873.700
|
|
|
Provisions |
|
|
4584.200
|
|
Total
Current Liabilities |
|
|
8292.900
|
|
|
Net Current Assets |
|
|
6242.900
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
91773.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
52550.100 |
49735.600 |
45170.400 |
|
|
|
Interest and Dividend income |
0.000 |
0.000 |
2519.100 |
|
|
|
Other Income |
4345.700 |
4634.600 |
1747.600 |
|
|
|
TOTAL (A) |
56895.800 |
54370.200 |
49437.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
26094.100 |
|
|
|
|
|
Purchases of Stock-in-Trade |
48.700 |
157.000 |
|
|
|
|
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
(265.600) |
(1321.000) |
|
|
|
|
Employee Benefits Expense |
3736.700 |
3317.600 |
|
|
|
|
Power and Fuel |
7143.300 |
6756.800 |
|
|
|
|
Freight and Handling Expenses |
829.900 |
679.900 |
|
|
|
|
Other Expenses |
4379.900 |
3734.100 |
|
|
|
|
Captive Consumption |
(298.700) |
(225.600) |
|
|
|
|
Exceptional Item |
(2044.300) |
0.000 |
|
|
|
|
TOTAL (B) |
39624.000 |
37152.100 |
31266.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
17271.800 |
17218.100 |
18170.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
390.900 |
358.200 |
455.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
16880.900 |
16859.900 |
17714.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1592.100 |
1442.000 |
1762.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
15288.800 |
15417.900 |
15952.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3028.900 |
3647.900 |
4134.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
12259.900 |
11770.000 |
11817.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6623.400 |
7037.200 |
22190.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
10000.000 |
25000.000 |
|
|
|
Corporate Dividend Tax |
NA |
120.200 |
136.600 |
|
|
|
Proposed Dividend |
NA |
2063.600 |
1834.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
NA |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
6623.400 |
7037.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Of Goods On FBO Basis |
12631.400 |
11187.800 |
8250.700 |
|
|
|
Technical Know-how and Service Charges |
2.400 |
2.100 |
0.000 |
|
|
|
Interest and Dividend |
146.600 |
195.100 |
0.000 |
|
|
|
Sale of Fixed Asset |
52.700 |
0.000 |
0.000 |
|
|
|
Others |
11.700 |
19.300 |
24.600 |
|
|
TOTAL EARNINGS |
12844.800 |
11404.300 |
8275.300 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
11508.300 |
8364.200 |
7398.400 |
|
|
|
Stores & Spares |
180.100 |
162.700 |
65.800 |
|
|
|
Capital Goods |
6374.900 |
1668.400 |
246.500 |
|
|
TOTAL IMPORTS |
18063.300 |
10195.300 |
7710.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
133.62 |
128.33 |
128.86 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
Particulars |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
31.03.2014 (Unaudited) |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net sales |
11630.700 |
14214.400 |
14701.400 |
15488.500 |
|
Total Expenditure |
9465.300 |
11442.600 |
12613.0000 |
1390.200 |
|
PBIDT (Excluding Other Income) |
2165.400 |
2771.800 |
2088.400 |
1586.500 |
|
Other income |
817.500 |
2053.500 |
348.400 |
629.700 |
|
Operating Profit |
2982.900 |
4825.300 |
2436.800 |
2216.200 |
|
Interest |
78.200 |
94.500 |
133.500 |
109.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
2904.700 |
4730.800 |
2303.300 |
2104.200 |
|
Depreciation |
484.400 |
529.700 |
546.800 |
635.200 |
|
Profit Before Tax |
2420.300 |
4201.100 |
1756.500 |
1472.000 |
|
Tax |
159.000 |
66.000 |
495.600 |
169.400 |
|
Profit after tax |
2261.300 |
4135.100 |
1260.900 |
1302.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
21.55 |
21.65 |
23.90
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
29.09 |
30.99 |
35.32
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.03 |
25.33 |
53.26
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.17 |
0.20
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.11 |
0.07 |
0.10
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.32 |
3.63 |
1.75
|
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
917.200 |
917.900 |
|
Reserves & Surplus |
90076.700 |
100300.700 |
|
Net
worth |
90993.900 |
101218.600 |
|
|
|
|
|
long-term borrowings |
5673.400 |
9809.200 |
|
Short term borrowings |
630.000 |
1908.200 |
|
Total
borrowings |
6303.400 |
11717.400 |
|
Debt/Equity
ratio |
0.069 |
0.116 |
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 |
45,170.400 |
49,735.600 |
52,550.100 |
|
|
|
10.107 |
5.659 |
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
|
45,170.400 |
49,735.600 |
52,550.100 |
|
Profit |
11,817.100 |
11,770.000 |
12,259.900 |
|
|
26.16% |
23.67% |
23.33% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
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 |
UNSECURED LOAN
(Rs. In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|||||||||||||||
|
Long-Term
Borrowings |
|
|
|||||||||||||||
|
Deferred Sales Tax Loans |
583.300 |
753.700 |
|||||||||||||||
|
|
|
|
|||||||||||||||
|
Short-Term
Borrowings |
|
|
|||||||||||||||
|
Working Capital Borrowings |
543.900 |
0.000 |
|||||||||||||||
|
Foreign Currency Loans |
250.000 |
0.000 |
|||||||||||||||
|
Documentary Demand Bills/Usance Bills under Letter of Credit Discounted |
112.400 |
62.600 |
|||||||||||||||
|
Total |
1489.600 |
816.300 |
|||||||||||||||
|
Nature of Security and
Repayment Terms
|
|||||||||||||||||
PRESS RELEASE
Grasim reports financial results for Q4 FY 2013-14
|
Rs. in Millions |
|
|
Consolidated
net revenue |
8,4190 (Up by
10 per cent) |
|
PAT |
6790 (Up by
11 per cent) |
Projects commissioned during the year:
- Caustic soda (183K TPA) and Epoxy - a chlorine derivative (52K TPA)
at Vilayat
- Clinker (3.3 Mn. TPA) at Malkhed
- Cement (3.1 Mn. TPA) at Malkhed and Jharsuguda
Project under commissioning:
·
Viscose staple fibre (120K TPA) at
Vilayat - Trial runs commenced
Consolidated financial performance
Mumbai: Grasim Industries Limited, an Aditya Birla Group company,
announced its results for the quarter and year ended 31 March 2014.
During the 4th quarter, revenue grew by 10 per cent at
Rs.84190.000 Millions (Rs.7,6740.000 Millions). Net profit after minority
interest (before exceptional item) is up by 11 per cent to Rs.6790.000 Millions
(Rs.6130.000 Millions) and sequentially up by 105 per cent from Rs.332
Millions. There was an exceptional gain of Rs.204 Millions on the sale of
Grasim's stake in Alexandria Carbon Black and Thai Carbon Black in quarter 4
last year.
Despite the prevailing economic slowdown during the year,
volumes have been augmented in all the businesses viz. VSF, Chemical and
Cement, driven by the commissioning of new capacities. While revenue increased
by 5 per cent at Rs.293240.000 Millions (Rs.279090.000 Millions), net profit
for the year was Rs.20720.000 Millions as against Rs.25000.000 Millions (before
exceptional item) in the last year. An overcapacity in the VSF business
globally and Cement Business in India has impacted the realisations and
profitability.
Dividend
The Board of Directors of Grasim has recommended the dividend of Rs.21 per
share. The total outflow on account of the dividend would be Rs.2000.000
Millions (including corporate tax on dividend).
Viscose Staple Fibre
VSF volume continued its upward trend. For the quarter,
volumes crossed 99k tonnes, recording a growth of 4 per cent Y-o-Y. Market
development activities in the domestic markets led to an improvement in the demand,
supported by higher production at Harihar.
Demand supply imbalance and liquidity crunch in China
impacted VSF prices in global markets. The company was able to maintain its
realisations, supported by the rupee depreciation. However, the rupee depreciation
has led to pulp costs moving up. This has created pressure on margins.
Chemical Business
The Chemical Business reported a growth of 30 per cent in
sales volumes during the quarter led by an additional volume from the Vilayat
plant. PBIDT was up by 9 per cent at Rs.550.000 Millions as against Rs.510.000
Millions during the corresponding quarter led by higher volumes and ECU
realisation. The full benefit of the Caustic and Epoxy plants at Chlor-Alkali
complex, Vilayat commissioned earlier will accrue in FY2014-15.
Greenfield project at Vilayat, Gujarat
Trial runs for the greenfield VSF project at Vilayat
commenced for line I in April 2014 and will be followed by line 2 very shortly.
These two lines have a capacity of 77K TPA out of total capacity of 120K TPA to
be commissioned. Remaining 2 lines focusing on specialty fibre are expected to
be commissioned in the 2nd quarter of current year.
Cement subsidiary (UltraTech Cement)
The cement and clinker sales for the quarter at 13 mn.
tonnes increased by 9 per cent, outperforming the sector. The quarter witnessed
pressure on input and logistic costs, given the hike in railway freight and
diesel prices. Net revenue for the quarter stood at Rs.63160.000 Millions
(Rs.58210.000 Millions). Net profit was up by 15 per cent at Rs.865 Millions
compared to Rs.7530.000 Millions last year. On sequential basis, net profit has
increased by 119 per cent from Rs.3950.000 Millions in previous quarter.
Cement capex
With the commissioning of the grinding capacity (1.45 Mn. TPA)
at Malkhed, Karnataka during the quarter, cement capacity rose to 57 Mn. TPA.
Requisite approvals including sanction of respective High
Courts and Competition Commission of India have been obtained for the
acquisition of the Gujarat Cement unit of Jaypee Cement Corp. (4.8 Mn. MT). The
scheme is now subject to the approval of SEBI. The transaction is expected to
be completed by 1st quarter of FY2014-15.
On commissioning of the brownfield projects currently under
implementation and the acquisition, total cement capacity of the company will
increase from 57 Mn. TPA to 70 Mn. TPA and clinker from 46.1 Mn. TPA to 51.8
Mn. TPA
Outlook
In the VSF sector, margins are likely to remain under pressure in the near term
due to overcapacity in China. The slowdown of new capacity additions in China
should lead to improvement in industry utilisation. With additional capacity
coming on stream, the company is well equipped to further consolidate its
leadership position in the industry.
In cement, the demand growth for the industry should gradually
recover to 8 per cent on improvement in the economic environment.
Grasim reports financial results for Q1 FY 2013-14
|
|
Rs. In Millions |
|
Consolidated net revenue |
69400.000 |
|
PBIDT |
15490.000 |
|
PAT |
6100.000 |
|
Projects commissioned recently |
|
|
Caustic Soda – Vilayat |
18K TPA (May) |
|
Cement Business – Clinker Plant Rawan |
3.3 Mn. TPA (March) |
|
Cement Business – Clinker Plant Malkhed |
3.3 Mn. TPA (July) |
VISCOSE STAPLE FIBRE
The production of VSF improved by 2% over the preceding quarter with
completion of the expansion at Harihar plant. The Kharach unit operated
at lower capacity for 45 days as Govt. canal supplying water was under repair.
However, the new reservoir at Nagda, and better planning at Harihar, ensured
that there is no production loss.
Sales volume was 77,518 MT and Net Revenue stood at Rs.980
Millions. The VSF prices remained under pressure due to overcapacity in
China. The impact of the decline in prices was partly neutralized by
depreciation of the Indian rupee. On the cost front, the price of caustic
and sulphur has eased. However, lower realisations resulted in a decline in
profits.
The pulp JVs have reported higher sales volumes. Pulp prices have improved
sequentially.
CEMENT SUBSIDIARY
(ULTRA TECH CEMENT)
The combined cement and clinker sales volume was 10.88 Mn. Tons. Net
Revenue stood at Rs.5,294 Millions. The quarter witnessed an increasing trend
in logisitics and raw material cost, linked to increase in railway freight and
diesel prices. The benefit of softening in prices of imported coal was partly
offset by the depreciation of the rupee.
CHEMICAL BUSINESS
The Chemical business put in a satisfactory performance. With the
commissioning of the Caustic Soda plant at Vilayat (Gujarat) in May 2013, sales
volume increased by 9% to 72,028 MT. Volumes will further improve with the
gradual ramp up of capacity. ECU realizations saw a correction from the peak
level witnessed during FY 2013.
VSF AND CHEMICAL
CAPEX
The green field projects of VSF (120,000 TPA) and Epoxy (51,000 TPA) at
Vilayat are expected to go on stream in the 3rd quarter in a phased manner.
CEMENT CAPEX
The clinkerisation plant at Malkhed (Karnataka) of 3.30 Mn. TPA was
commissioned during July 2013 in addition to that of Rawan (Chattisgarh) of
3.30 Mn. TPA in March 2013. With this, the total clinker capacity stands
increased to 45.10 Mn. TPA. This will contribute to the volumes in a phased
manner.
Work on the 2.90 Mn. TPA brown field expansion at Shambhupura
(Rajasthan), has commenced.
After the commissioning of all the projects (including cement grinding
units) currently under implementation, Ultra Tech’s cement capacity will stand
augmented to 64.45 Mn. TPA.
OUTLOOK
Given the prevailing global economic conditions, coupled with the surplus
capacity in China, the VSF industry continues to face a challenging environment
in the immediate term. In Cement, the demand is expected to grow by 6% in FY 2014
due to the slowdown in GDP growth rate. It has the potential to recover to over
8% with the improvement in the economic environment.
Capacity expansions in VSF and Cement will provide additional volumes,
driving growth and further consolidate the Company’s leadership. This will
enable the Company to move forward rapidly, with the recovery in the market.
The Company will continue to focus on cost reduction measures, improving
asset productivity to maintain its position as the lowest cost producer and expanding
specialty products portfolio for sustained shareholder value creation.
Grasim reports better
performance for financial year 2012-13
(Rs. In Millions)
|
Consolidated net revenue |
279040.000 |
|
PBIDT |
65430.000 |
|
PAT |
27040.000 |
|
Projects
commissioned |
|
|
VSF – Harihar Phase II |
18K TPA |
|
Caustic – Vilayat |
182K TPA |
|
Cement – Rawan Clinkerisation |
3.3 Mn. TPA |
|
Hotgi Grinding Unit |
1.55 Mn. TPA |
VISCOSE STAPLE FIBRE
(VSF)
Sluggishness in the global economy continued to impact the textile industry.
Fibre prices remained volatile due to the surplus VSF capacity in China and
high cotton inventory. Despite the difficult market conditions, sales volumes
for the quarter at 95,161 tonens were maintained. Volumes during the year,
however, grew by 9 per cent. Global VSF prices declined by 10 per cent on YoY
basis. Though pulp cost eased with decline in imported pulp prices, higher
caustic prices led to pressure on margins. The Chemical business, however,
benefited from the increase in caustic prices.
The performance of the company’s pulp JVs was adversely affected due to fall in realizations.
CEMENT SUBSIDIARY
(ULTRATECH CEMENT)
The combined cement and clinker sales for the quarter was 12.05 Mn. tonnes. Net
revenue stood at Rs. 58190.000 millions (Rs.56500.000 millions), up by 3 per
cent. Profit after Tax was Rs. 7530.000 millions (after providing for the
additional deferred tax liability of Rs.870.000 millions) as compared to Rs. 8720.000
millions in Q4 FY 2011-12.
The quarter witnessed continuing pressure on input and logistics costs, given the increase in railway freight and hike in diesel prices though there was some relief on account of the softening in prices of imported coal.
CHEMICAL BUSINESS
The Chemical business continued to perform well. ECU realizations remained
firm. Some improvement in chlorine prices was visible during the quarter. Both
operating profit and margins, improved.
VSF AND CHEMICAL
CAPEX
The brown field VSF expansion at Harihar (Karnataka), has been completed with
the commissioning of Phase II (18,250 TPA) in May 2013.
The green field project of VSF (120,000 TPA) at Vilayat (Gujarat) is nearing completion and is expected to go on stream in the 2nd quarter. Chemical plant (182,500 TPA) started commercial production in May 2013. There will be a gradual ramp up in capacity in the first half of FY 2013-14.
Work on epoxy project (Vilayat) is progressing, and is likely to be commissioned in September 2013.
A major revamp of the VSF plant at Nagda has started. This will be undertaken in phases, spread over the next two years.
CEMENT CAPEX
UltraTech is implementing projects across many of its locations. Of these, the
following projects have been commissioned during the quarter:
|
Clinkerisation plant at Rawan, Chhattisgarh |
3.30 Mn. TPA |
|
Grinding unit at Hotgi, Maharashtra |
1.55 Mn. TPA |
|
Increase in cement grinding capacity at Gujarat plant |
0.60 Mn. TPA |
|
Bulk terminal at Cochin, Kerala |
|
|
Wall care putty plant at Katni, Madhya Pradesh |
|
With the commissioning of these projects, the clinker capacity has increased to 41.80 Mn. TPA and that of cement to 53.90 Mn. TPA. The clinkerisation plant of 3.30 Mn. TPA in Karnataka is expected to go on stream in Q1 FY 2013-14.
UltraTech plans to expand its capacity at Aditya Cement Works in Rajasthan by 2.90 Mn. TPA including the setting up of two grinding units. The expansion envisages a capital outlay of Rs.20000.000 millions. The additional capacity is expected to be commissioned by March 2015.
With the commissioning of the existing projects under implementation and Aditya
expansion, UltraTech’s cement capacity will stand augmented to 64.45 Mn. TPA.
OUTLOOK
Given the prevailing global economic conditions, coupled with the surplus
capacity in China, the VSF industry is expected to remain under pressure in the
short term. In Cement, the demand is expected to grow by an average 8 per cent
in the long term with housing, infrastructure and allied spending being the key
value drivers. Industry capacity utilisation is likely to improve to 80 per
cent in FY 2016 as the pace of capacity addition will slow down. Cost pressures
are easing off with the decline in global commodity prices, particularly
energy.
Capacity expansions in VSF and capacities under implementation / unutilised in cement will provide additional volumes, driving growth and further consolidation of the company’s leadership. The company will utilise these capacities at the earliest in the present difficult situation. The company will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest costs producer and expanding specialty products portfolio for sustained shareholder value creation.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
In the Financial Year ending 31st March, 2013 (FY 2012-13), the global economy continued to show a dismal picture amidst a difficult fiscal situation in many of the advanced economies. Though the US economy saw some improvement, Japan and European Union slipped into recession, while growth in China declined. However, fear of collapse in European economy has subsided. Amidst the continued global uncertainty and slowdown, India’s GDP growth is estimated to have declined to ~5% in the FY 2012-13, its slowest pace in the last ten years arising out of the sharp slowdown in investment, weakening consumption and declining exports. Inflation remained high, given supply side bottlenecks limiting the scope of monetary easing. The sharp decline of the rupee during the first half of the FY 2012-13 further widened the current account deficit.
Though they have seen a difficult year, the global and domestic economic scenario is expected to improve marginally in the FY 2013-14. Policy actions in the US and EU have lowered the acute crisis risks. Monetary stimulus measures in advanced as well as emerging economies should help support growth. Even in India, the Government announced various policy reform measures during the year. This coupled with the expected reduction in interest rates, should aid the growth momentum going forward.
Overall, weak global and domestic conditions posed challenges for the Company’s businesses. Despite volume growth in VSF, prices remained weak due to surplus capacity in China, cotton surpluses and overall slowdown in textile industry. The Cement sector witnessed a slowdown in demand in the second half. On the positive side, weak global energy prices eased cost pressures to an extent in both businesses.
BUSINESS PERFORMANCE
REVIEW
PERFORMANCE REVIEW
The FY 2012-13 has been an extremely challenging year for the VSF business. The slow recovery of the US economy, continued crisis in the Euro-zone and the slowdown in the Chinese economy, especially low exports of textiles, have put pressure on the overall global economy. These coupled with the steep fall in the prices of cotton and significant surplus VSF capacity in China, has adversely impacted the price of VSF. While the demand for VSF has been robust, the sharp drop in realisation and increase in input costs have impacted the margins significantly. A sharp decline in realisation in international markets was largely offset due to rupee depreciation and, therefore, realisations for the Company reduced by only 4% in comparison to last year.
Production increased by 5% as compared to last year with enhanced capacity at Harihar plant and reduction in the shutdown days at the Nagda plant through better water management. In difficult market conditions, sales volumes rose by 9%, with increased focus on export markets. A sharp depreciation of the rupee and steep increase in Caustic prices led to a substantial increase in input costs. Chemical business, however, benefitted from increase in caustic prices.
Despite better efficiency achieved in Pulp JVs, profitability was impaired due to lower pulp realisation. The performance of the Chinese VSF JV was also not optimal due to adverse market conditions. Initial losses at AV Terrace Bay amounting to Rs.602.000 millions (Company’s share), further affected the consolidated performance in the second half of the financial year.
During the year, an additional water reservoir was constructed at Nagda to create additional water storage capacity to meet water requirement during summers. This will help in ensuring uninterrupted plant operations at Nagda.
Capex plans of Rs.28260.000 millions are under implementation for the expansion projects and the normal capex, of which Rs.16700.000 millions has already been spent.
SECTOR OUTLOOK
In the near term, given the deceleration in global economy, the recovery of the textile sector is expected to be slow. The huge cotton reserves created by China and surplus capacities have led to uncertainty in VSF prices. These factors are likely to impact margins in the short term.
In the long term, with limitations for growth of cotton production due to competition with other cash crops, growing population, rising prosperity and increasing consumer awareness about the benefits of cellulosic fibre, VSF is well positioned to achieve a larger share of the global fibre pie.
BUSINESS OUTLOOK
The focus of the Company continues to be on specialty fibres. The Company plans to add significant capacity for specialty fibre at Vilayat as part of its efforts for market enlargement. The Business has intensified efforts to build a strong R and D set-up, which will enable it to launch new product offerings. Improving the overall operational efficiencies in these challenging times will enable it to protect margins. With additional capacity coming on stream in the first half of the FY 2013-14, the Company is well equipped to further consolidate its leadership position in the industry.
PERFORMANCE REVIEW
The Chemical business has reported an excellent performance. With plant operations at full capacity, the business achieved record production and sales volume. Caustic realisation remained firm throughout the year in line with global trend as industry capacity utilisation was affected due to low chlorine off take. As a result, ECU realisation was up by 13%. Operating profit at Rs.2450.000 millions rose by 52%.
SECTOR OUTLOOK
The demand growth momentum for Caustic is expected to be maintained, led by the Aluminium, Paper and Fibre industries. Globally, production of chlorine is slated to improve with recovery in the housing markets, which may result into increased caustic production and, hence, may lead to softening of caustic prices.
BUSINESS OUTLOOK
The 182,500 TPA expansions at Vilayat was commissioned in May 2013. There will be a gradual rampup in capacity, during the first half of the FY 2013-14. Volumes will grow significantly with the new capacity and the favourable demand outlook. The portfolio of Value Added Products is being enhanced continuously with the twin purpose of utilising chlorine and simultaneously adding value.
PERFORMANCE REVIEW
As a direct result of slowdown in GDP growth in India, the year was tough for the cement industry. The demand growth in industry has slowed down due to subdued off take from infrastructure and housing segment. Grey cement sales volume remained flat at the previous year levels.
During the year, prices remained volatile. Although the first half witnessed an improving trend, in the later part of the year prices declined. Domestic cement realisation was up by 9%, linked to improved demand in the first half of the year. The increase in logistic costs, input material and additives prices were passed on. Energy cost at Rs.989/ton remained flat. Imported coal prices were lower by around 20-25% in USD term; however, the benefit of such reduction was partially negated due to rupee depreciation. The Company constantly optimise the fuel-mix in kilns and power plants so as to reduce the use of high cost imported coal and maximise the use of low cost fuel, viz., pet coke, alternate fuel, etc. Pet coke consumption in kilns and power plants improved to ~35%. White Cement volume grew by 2% from 5.55 Lac Tons to 5.66 Lac Tons.
Ultra Tech’s turnover crossed the Rs. 200000.000 millions mark, up by 11% over the FY 2011-12. PBIDT increased by 13% from Rs. 45650.000 millions to Rs. 51430.000 millions.
The Competition Commission of India (CCI) had imposed a penalty of Rs.11754.900 millions on UltraTech for alleged contravention of the provisions of the Competition Act, along with 9 other cement companies. Based on the legal opinion, Ultra Tech has been advised that it has a good case and accordingly it has filed an appeal before the Competition Appellant Tribunal.
OUTLOOK FOR CEMENT
BUSINESS
The growth prospects of the Cement industry are closely linked to the growth of the overall economy in general and the real estate, construction sector and infrastructure in particular. The housing sector consumes nearly two-thirds of the country’s total cement and is the most important cement driver. If the present slowdown in organised real estate persists for an extended period, it may impact the growth in consumption of cement.
The government’s focus on infrastructure development should boost cement demand. Higher infrastructure spending, robust growth in rural housing and expected decline in interest rates augur well for the cement industry and, therefore, the long-term drivers for cement demand remain intact.
FINANCIAL PERFORMANCE
The Company has reported improved performance for the year, achieving higher Revenue and PBIDT, despite the economic slowdown as reflected in decline in the Indian GDP growth to ~5%. The Company’s Revenue increased by 11% at Rs.279040.000 millions (Rs.252450.000 millions). PBIDT was up from Rs.63210.000 millions to Rs.65430.000 millions, a growth of 4%, led by improved volumes in the VSF business and cost optimisation. Net Profit was Rs.27040.000 millions as compared to Rs.26470.000 millions in the FY 2011-12.
The Company’s subsidiary, Ultra Tech, reported a net profit of Rs.26780.000 millions vis-à-vis Rs.24030.000 millions, reflecting a growth of 11%. The pressure on input and logistic cost continued, though there was some relief on account of the softening in prices of imported coal.
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
|
Claims/Disputed
Liabilities not acknowledged as debt: |
|
|
|
Custom Duty |
20.700 |
37.000 |
|
Sales Tax/Purchase Tax/VAT |
0.100 |
2.000 |
|
Excise Duty/Cenvat Credit/Service Tax |
19.800 |
75.800 |
|
Water Cess |
239.600 |
241.700 |
|
Various claims in respect of disputed liabilities of discontinued business in earlier year |
700.000 |
700.000 |
|
Others |
253.700 |
268.100 |
|
Out of the above
matter disputes pending with Revenue and other Government authorities
challenged/appealed by the Company are: |
|
|
|
(a) Water charges for water not made available as per agreement |
239.600 |
223.200 |
|
(b) Penalty for not utilising the land within the time limit prescribed as per the sanction document, utilisation of which is delayed due to non-fulfilment of condition by Gujarat Industrial Development Corporation |
62.100 |
53.400 |
|
(c) Claims arising from disputes of vendors/contractors |
72.500 |
71.600 |
|
(d) Service Tax on Goods Transport Agency on full amount of service instead on 25% of value of services Cash outflows for the above are determinable only on receipt of judgements pending at various forums/authorities |
-- |
59.000 |
|
|
|
|
|
Custom Duty (Net of Cenvat Credit) which may arise if obligation for exports is not fulfilled against import of raw materials and machinery |
458.400 |
80.600 |
|
|
|
|
|
Letter of Undertaking-cum-Indemnity, Corporate Guarantees given to Bank/ Financial Institutions for finance provided to subsidiary and joint venture |
-- |
2076.100 |
|
- Amount Outstanding against above |
-- |
966.900 |
STATEMENT OF STANDALONE
AUDITED RESULTS FOR THE QUARTER ENDED 31.03.2014
(Rs. In Millions)
|
|
Particulars |
31.03.2014 (Audited) |
31.12.2013 (Unaudited) |
31.03.2014 (Audited) |
|
|
|
|
|
|
|
|
Income from
Operations |
|
|
|
|
|
Net Sales / Income from Operations (Net of Excise Duty) |
15283.500 |
14558.200 |
55386.100 |
|
|
Other Operating Income |
205.000 |
143.200 |
648.900 |
|
|
Total Income from
Operations (Net) |
15488.500 |
14701.400 |
56035.000 |
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Cost of Materials Consumed |
8286.000 |
7887.000 |
29826.100 |
|
|
Purchases of Stock-in-Trade |
26.500 |
10.800 |
68.000 |
|
|
Changes [Decrease / (Increase)] in Inventories of |
780.500 |
279.800 |
40.500 |
|
|
Employee Benefits Expense |
819.500 |
963.800 |
3788.000 |
|
|
Power and Fuel Cost |
2167.800 |
2060.700 |
8145.800 |
|
|
Freight and Handling Expenses |
280.600 |
255.700 |
943.200 |
|
|
Depreciation and Amortisation Expense |
635.200 |
546.800 |
2196.100 |
|
|
Other Expenses |
1541.100 |
1155.200 |
4610.100 |
|
|
Total Expenses |
14537.200 |
13159.800 |
49617.800 |
|
|
|
|
|
|
|
|
Profit from
Operations before Other Income, Finance Costs and Exceptional Item (1 - 2) |
951.300 |
1541.600 |
6417.200 |
|
|
Other Income |
629.700 |
348.400 |
3847.900 |
|
|
Profit from
Ordinary Activities before Finance Costs and Exceptional Item (3 + 4) |
1581.000 |
1890.000 |
10265.100 |
|
|
Finance Costs |
109.000 |
133.500 |
415.200 |
|
|
Profit from Ordinary
Activities after Finance Costs but before Exceptional Item (5 - 6) |
1472.000 |
1756.500 |
9849.900 |
|
|
Exceptional Item (Refer Note 2) |
-- |
-- |
-- |
|
|
Profit from
Ordinary Activities before Tax (7 + 8) |
1472.000 |
1756.500 |
9849.900 |
|
|
Tax Expense |
169.400 |
495.600 |
890.000 |
|
|
Net Profit for the
Period (9 - 10) |
1302.600 |
1260.900 |
8959.900 |
|
|
Paid-up Equity Share Capital (Face Value Rs.10 per share) |
918.400 |
918.400 |
918.400 |
|
|
Reserve excluding Revaluation Reserves |
|
|
107357.400 |
|
|
Earning per share
(of Rs.10/- each) (not annualized) |
|
|
|
|
|
(a)Basic (Rs.) |
14.18 |
13.73 |
97.58 |
|
|
(b)Diluted (Rs.) |
14.18 |
13.73 |
97.54 |
|
|
|
|
|
|
|
|
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
Public Shareholding
* |
|
|
|
|
|
- Number of Shares (000's) |
55138 |
55010 |
55138 |
|
|
- Percentage of Shareholding |
60.05 |
59.91 |
60.05 |
|
|
Promoters and
Promoter Group Shareholding * |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of Shares (000's) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the total share capital of the Company) |
-- |
-- |
-- |
|
|
b) Non-encumbered |
|
|
|
|
|
- Number of Shares (000's) |
23429 |
23429 |
23429 |
|
|
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
- Percentage of Shares (as a % of the total share capital of the Company) * Excludes shares represented by Global Depository Receipts |
25.51 |
25.52 |
25.51 |
|
|
|
|
|
|
|
|
INVESTORS
COMPLAINTS |
|
||
|
|
Pending at the beginning of the Quarter |
-- |
||
|
|
Received during the Quarter |
5 |
||
|
|
Disposed of during the Quarter |
5 |
||
|
|
Remaining unresolved at the end of the Quarter |
-- |
||
UNAUDITED STANDALONE SEGMENT
WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30-06-2013
|
Particulars |
31.03.2014 (Audited) |
31.12.2013 (Unaudited) |
31.03.2014 (Audited) |
|
1. SEGMENT REVENUE |
|
|
|
|
Viscose Staple Fibre |
12735.600 |
12500.200 |
47141.400 |
|
Chemicals - Caustic Soda and Allied Chemicals |
3366.800 |
2597.300 |
10745.000 |
|
Others * |
224.600 |
245.500 |
955.600 |
|
TOTAL |
16327.000 |
15343.000 |
58842.000 |
|
(Less) : Inter Segment Revenue |
(838.500) |
(641.600) |
(2807.000) |
|
Total Operating
Income |
|
|
|
|
2. SEGMENT RESULTS |
|
|
|
|
Viscose Staple Fibre |
892.200 |
1312.300 |
5739.600 |
|
Chemicals - Caustic Soda and Allied Chemicals |
320.100 |
423.100 |
1605.700 |
|
Others * |
5.800 |
5.800 |
18.100 |
|
TOTAL |
1218.100 |
1741.200 |
7363.400 |
|
Add / (Less): |
|
|
|
|
Finance Costs |
(109.000) |
(133.500) |
(415.200) |
|
Net Unallocable Income / (Expenditure ) |
362.900 |
148.800 |
2901.700 |
|
Profit from Ordinary
Activities after Finance Costs but before Exceptional Item |
1472.000 |
1756.500 |
9849.900 |
|
Exceptional Item (Refer Note 2) |
-- |
-- |
-- |
|
Profit from
Ordinary Activities before Tax |
1472.000 |
1756.500 |
9849.900 |
|
|
|
|
|
|
3. CAPITAL EMPLOYED (Segment Assets -
Segment Liabilities) |
|
|
|
|
Viscose Staple Fibre |
50434.600 |
49187.300 |
50434.600 |
|
Chemicals - Caustic Soda and Allied Chemicals |
18882.500 |
18296.100 |
18882.500 |
|
Others * |
278.500 |
282.300 |
278.500 |
|
TOTAL |
69595.600 |
67765.700 |
69595.600 |
|
Add: Unallocated Corporate Capital Employed |
56321.000 |
60838.100 |
56321.000 |
|
TOTAL CAPITAL
EMPLOYED |
125916.600 |
128603.800 |
125916.600 |
* Others represent mainly Textiles
NOTES:
1.
The figures for the
quarter ended 31st March are the balancing figures between the audited figures
in respect of the full financial year and published year to date figures upto
third quarter of the relevant financial year.
2.
The Financial Results
were reviewed by the Audit Committee and approved by the Board of Directors on
May 02, 2014.
3.
Previous periods’
figures have been regrouped / rearranged wherever necessary to conform to the
current periods’ classification.
4.
Exceptional item of
Rs. 2044.300 Millions appearing in the audited results for the year ended March
31, 2013 represents profit on sale of the long-term investments in Thai Carbon
Black Public Company Limited, Thailand and Alexandria Carbon Black Co., S.A.E.,
Egypt.
5.
Tax expenses for the
quarter and year ended March 31, 2014 are net of provisions pertaining to
earlier years’ write back amounting to Rs. 72.400 Millions and Rs. 29.09
Millions respectively.
6.
During the quarter,
the Company has allotted 6,279 fully paid up equity shares of Rs. 10 each upon
exercise of employee stock options.
7.
The Board of Directors
has recommended a dividend of Rs.21 per share of face value of Rs. 10 each
aggregating Rs. 2003.200 Millions (including corporate dividend tax).
STANDALONE STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
SOURCES OF FUNDS |
30.09.2013 (Unaudited) |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
918.400 |
|
(b) Reserves & Surplus |
107357.400 |
|
Total
Shareholders’ Funds |
108275.800 |
|
|
|
|
(2)
Non-Current Liabilities |
|
|
(a) long-term borrowings |
10043.800 |
|
(b) Deferred tax liabilities (Net) |
4620.000 |
|
(c) Other long term liabilities |
146.600 |
|
(d) long-term provisions |
423.100 |
|
Total Non-current Liabilities (3) |
15233.500 |
|
|
|
|
(3) Current Liabilities |
|
|
(a) Short term borrowings |
1271.600 |
|
(b) Trade payables |
4513.900 |
|
(c) Other current
liabilities # |
4819.800 |
|
(d) Short-term provisions |
4661.900 |
|
Total Current Liabilities (4) |
15267.200 |
|
|
|
|
TOTAL |
138776.500 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
53551.900 |
|
(b) Non-current Investments |
44201.000 |
|
(c) Long-term Loan and Advances |
4786.000 |
|
(d) Other Non-current assets |
0.000 |
|
Total Non-Current Assets |
102538.900 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
11835.400 |
|
(b) Inventories |
12122.700 |
|
(c) Trade receivables |
6137.900 |
|
(d) Cash and cash
equivalents * |
263.000 |
|
(e) Short-term loans and
advances |
5514.900 |
|
(f) Other current assets |
363.700 |
|
Total Current Assets |
36237.600 |
|
|
|
|
TOTAL |
138776.500 |
#
includes current maturities of long term debts Rs.1705.400 Millions (Previous
Year Rs.1235.200 Millions)
* Cash and cash equivalents represents cash and bank balances
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10326687 |
07/01/2012 |
9,000,000,000.00 |
STATE BANK OF INDIA |
Corporate Account Group Branch, Neville House, JN Heredia Marg, Mumbai, Maharashtra - 400001, INDIA |
B29015542 |
|
2 |
10108132 |
18/05/2010 * |
3,000,000,000.00 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
A86805397 |
|
3 |
80024425 |
15/12/2005 |
1,386,000,000.00 |
Industrial Development Bank of India Ltd. |
IDBI Tower, WTC Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, INDIA |
- |
|
4 |
80024325 |
18/05/2010 * |
8,300,000,000.00 |
State Bank of India |
Corporate Accounts Group, Voltas House, 23, JN Heredia Marg, Mumbai, Maharashtra - 400001, INDIA |
A87144812 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record exists
to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.48 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.79.81 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
76 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.