MIRA INFORM REPORT

 

 

Report Date :

29.05.2014

 

IDENTIFICATION DETAILS

 

Name :

COSMO FILMS LIMITED

 

 

Registered Office :

1008, DLF Tower- A, Jasola District Centre, New Delhi - 110025

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

07.10.1976

 

 

Com. Reg. No.:

55-008355

 

 

 Capital Investment / Paid-up Capital :

Rs. 194.400 Millions

 

 

CIN No.:

[Company Identification No.]

L92114DL1976PLC008355

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

NSKC01059C

 

 

Legal Form :

A Public Limited Liability Company. Company's Shares are Listed on the Stocks Exchange.

 

 

Line of Business :

Manufacturer and Supplier of Packaging Films, Label Films, Print Lamination and Specialty Films.

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

 

Maximum Credit Limit :

USD 14757000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exist 

 

 

Comments :

Subject is an established company having satisfactory track record.

 

There appears sharp dip in profit of the company during the financial year 2013.

 

However, general financial position of the company seems to be decent.

 

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

 

The company can be considered for business dealings at usual trade term 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.

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

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

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Joshi

Designation :

Accounts Manager

Contact No.:

91-240-2554611

Date :

26.05.2014

 

 

LOCATIONS

 

Registered / Corporate Office :

1008, DLF Tower- A, Jasola District Centre, New Delhi - 110025, India

Tel. No.:

91-11-49494949

Fax No.:

91-11-49494950               

E-Mail :

ashok@dl.cosmo.sprintsmx.ems.vsnl.net.in

mgredp@cosmofilms.com

mm.rao@gndel-cfldel.global.net.in

skmittal@gndel-cfldel.global.net.in

murali@cosmofilms.com

secretary@cosmofilms.com

investor.relations@cosmofilms.com

Website :

http://www.cosmo-india.com

http://www.cosmofilms.com

 

 

Factory 1 :

J-4, MIDC Industrial Area, Chikalthana, Aurangabad – 431210, Maharashtra, India

Tel. No.:

91-240-2485894

 

 

Factory 2 :

B-14/8-9, MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra, India 

Tel. No.:

91-240-2554612 / 13 / 14 / 2554611

Fax No.:

91-240-2554416 / 2556275

E-Mail :

gopi@cosmofilms.com

 

 

Factory 3

B – 21, MIDC Industrial Area, Aurangabad – 431136, Maharashtra, India

Tel No.:

91-240-2551888/ 2553353/ 54

 

 

Factory 4 :

Vermardi Road, Village Navi Jihardi, Near Inox, Off. N. H. Road, Taluka-Karjan, Vadodara-391240, Gujarat, India 

Tel. No.:

91-2666-232960/231635 / 231097

Fax No.:

91-2666-232961

E-Mail :

gks@cosmofilms.com

 

 

Factory 5 :

Plot No. 359-B, Baska Village, Taluka-Halol, Panchmahals, Gujarat, India 

Tel. No.:

91-2676-247021/247128

Fax No.:

91-2676-247041

 

 

Factory 6 :

Mercuriusstraat 9, 6468 ES Kerkrade, The Netherlands 

Tel. No.:

31 45 535 7676

Fax No.:

31 45 535 7878

 

 

Factory 7 :

560, Western Maryland Parkway, Hagerstown, Maryland 21740

Tel. No.:

+302-3287780  

Fax No.:

+302-5311831

 

 

Factory 8 :

811, Sineon-RI, Dogo-Myeon, Asan-SI, Choongnam-336-914 South Korea

Tel. No.:

+82-41-531-1830

Fax No.:

+82-41-531-1831

 

 

Factory 9 :

303, 3rd Floor, Gokul Arcade, A Wing, Opposite Hong Kong Bank, Subhash Raod, Vile Parle (East), Mumbai – 400057, Maharashtra, India

Tel. No.:

91-22-28261195/ 28261197/ 28266395

E-Mail :

Info.mum@cosmofiles.com

 

 

Factory 9 :

AL-24/1, MIDC-SEZ, Slendra Industrial Area, Aurangabad – 431201, Maharashtra, India

Tel. No.:

91-240-2622205/ 2622301

 

 

Branch Offices :

Located at:

 

·         Mumbai

Aurangabad

Vadodara

 

 

Overseas Offices :

Located at:

 

·         Illinois, America

Amsterdam, The Netherlands

Korea

Tokyo, Japan

 

 

DIRECTORS

 

AS ON 31.03.2013

 

Name :

Mr. Ashok Jaipuria

Designation :

Chairman and Managing Director

Qualification :

Degree in Associates of Arts in Business Administration & Diploma in Marketing Science

Date of Appointment :

02.04.1980

 

 

Name :

Mr. Anil Kumar Jain

Designation :

 Whole Time Director

Date of Birth :

18.03.1951

Date of Appointment :

24.05.2011

Qualification :

B.Com. (H), A.I.C.W.A., CISA

ssss

 

Name :

Mr. H K Agarwal

Designation :

Independent Director

Date of Birth :

11.10.1947

Date of Appointment :

13.01.2000

 

 

Name :

Dr. Surinder Kapur

Designation :

Independent Director

Qualification :

Ph.D. in Mechanical Engineering

 

 

Name :

Mr. Rajeev Gupta

Designation :

Independent Director

Qualification :

B E and MBA

 

 

Name :

Mr. Badri Agarwal

Designation :

Director

Qualification :

Chartered Accountant

 

 

Name :

Mr. R Vasudevan

Designation :

Independent Director

Qualification :

B.A. (Hons) Economics, M.A. (Economics and Statistics), MPA (Development Economics)

 

 

Name :

Mr. Suresh Rajpal

Designation :

Independent Director

Date of Birth :

17.08.1943

Date of Appointment ;

28.05.2010

Qualification :

BE (Electrical) MBA

 

 

Name :

R Vasudevan

Designation :

Independent Director

 Qualification :

B.A (Hons) Economics, M A (Economics and Statistics), MPA (Development Economics) Harvard University, USA

 

 

KEY EXECUTIVES

 

Name :

Mr. Neeraj Jain

Designation :

Chief Financial Officer

 

 

Name :

Mr. Pankaj Poddar

Designation :

President

 

 

Name :

Mr. A G Deshpande

Designation :

Vice President – R and D and Business Development

 

 

Name :

Mr. Janardhan Gupta 

Designation :

Vice President – Legal and Special Assignment

 

 

Name :

Mr. Tanuj Agarwal

Designation :

Vice President- International Operation

 

 

Name :

Mr. S.C. Maity

Designation :

General Manager – Manufacturing

 

 

Name :

Mr. A.K. Pathak

Designation :

General Manager – Manufacturing

 

 

Name :

Mr. N.R. More

Designation :

General Manager – Engineering 

 

 

Name :

Mr. R.K. Gupta

Designation :

General Manager – Commercial

 

 

Name :

Mr. Sanjay Chincholikar

Designation :

General Manager – Global Head Packing Films

 

 

Name :

Mr. S. K. Dutta

Designation :

General Manager- Manufacturing

 

 

Name :

Mr. Rajeev Joshi

Designation :

Head – HR

 

 

Name :

Mr. Jagdip Kumar

Designation :

Assistant General Manager – Information Technology

 

 

Name :

Mr. Shailesh Verma

Designation :

General Manager - Global Head Specialty Films

 

 

Name :

Ms. Jyoti Dixit

Designation :

Company Secretary

 

 

Name :

Mr. Joshi

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2014

 

Category of Shareholder

Total No. of Shares

As a %

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

1138881

5.86

Bodies Corporate

7189558

36.98

Sub Total

8328439

42.84

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

8328439

42.84

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

2380

0.01

Financial Institutions / Banks

4300

0.02

Foreign Institutional Investors

4200

0.02

Sub Total

10880

0.06

(2) Non-Institutions

 

 

Bodies Corporate

1317110

6.78

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

6731046

34.62

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1744170

8.97

Any Others (Specify)

1308431

6.73

Non Resident Indians

1303431

6.70

Trusts

5000

0.03

Sub Total

11100757

57.10

Total Public shareholding (B)

11111637

57.16

Total (A)+(B)

19440076

100.00

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

 

 

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

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

19440076

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Supplier of Packaging Films, Label Films, Print Lamination and Specialty Films.

 

 

Products :

Product Descriptions

ITC Code

 

Biaxially Oriented Polypropylene Film and Synthetic Paper

3920.99

Termal Lamination Machines

8477.59

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity

Actual Production

 

 

 

 

Biaxially Oriented Polypropylene Film and Synthetic Paper

MT

122200

87787

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Divulged

 

 

Bankers :

·         Landesbank Baden- Wurttemberg

IDBI Bank Limited

ICICI Bank Limited

HSBC Bank Plc

Export Import Bank of India

Union Bank of India

State Bank of India

ING Vysya Bank Limited

HDFC Bank Limited

Yes Bank Limited

Kotak Mahindra Bank Limited

International Finance Corporation

Development Bank of Singapore (DBS Limited)

 

 

Facilities :

SECURED LOAN

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG-TERM BORROWINGS

 

 

Foreign currency loans

2051.300

1180.800

Rupee term loans

225.000

150.000

Vehicle loans

2.400

4.500

SHORT-TERM BORROWINGS

 

 

Cash credits/ working capital demand loans

1958.300

1553.600

Overdrafts

4.700

30.100

 

 

 

Total

 

4241.700

2919.000

 

NOTE:

 

LONG-TERM BORROWINGS

 

Foreign currency loans comprises of :

 

(i) Loan of USD 10,000,000 taken from ICICI Bank during the financial year 2010-11 and carries interest @ Libor +400 bps per annum. The loan is repayable in 5 equal semiannual installments of USD 2,000,000 each after moratorium period of 3.5 years from the date of loan.

 

(ii) Loan of USD 7,500,000 taken from HSBC PLC Bank during the financial year 2008-09 and carries interest @ Libor+150 bps per annum. The loan is repayable in 6 equal semiannual installments of USD 1,250,000 each after

moratorium period of 2.5 years from the date of loan.

 

(iii) Loan of USD 13,272,220 taken from Landesbank Baden Wurttemberg Bank (LBBW) during the financial year 2008- 09 and 2009-10 and carries interest @ Libor+37.5 bps per annum. The loan is repayable in 16 equal semiannual installments of approx. USD 832,640 each after six month from the date of start of commercial production.

 

(iv) Loan of USD 5,000,000 taken from IFC Bank during the financial year 2011-12 and carries interest @ Libor+400 bps per annum. The loan is repayable in 15 equal semi-annual installments of USD 333,333 after moratrorium period of 2.5 years from the date of loan.

 

(v) Loan of EURO 9,219,450 taken from Landesbank Baden Wurttemberg Bank (LBBW) during the financial year 2012-13 and carries interest @ Libor+105 bps per annum. The loan is repayable in 17 equal semiannual installments starting after six month from the date of start of commercial production.

 

(vi) Loan of USD 7,000,000 taken from DBS Bank during the financial year 2012-13 and carries interest @ Libor+225 bps per annum. The loan is repayable in 8 semi-annual installments from April-2015. (The loan has been fully hedged into an equivalent Rupee loan with fixed rate of interest).

 

b) Rupee term loans comprises of :

 

(i) Loan of Rs.108.675 Millions taken from Kotak Mahindra Bank during the financial year 2011-12 and carries interest @ base rate+ 3.75% per annum. The loan is repayable in 78 equal monthly installments of Rs.1.393 Millions alongwith interest from the date of loan.

 

(ii) Loan of Rs. 318.159 Millions taken from IDBI Bank during the financial year 2008-09 and carries interest @ base rate+ 2.65% per annum. The loan is repayable in 10 equal semiannual installments of Rs. 31.816 Millions alongwith interest from the date of loan.

 

(iii) Loan of Rs. 300.000 Millions taken from SBI during the financial year 2012-13 and carries interest @ base rate+ 2.25% per annum. The loan is repayable after a Moratorium of 12 month from the date of disbursement in 8 equal quarterly installments of Rs. 37.500 Millions.

 

c) Vehicle loans taken from Union Bank of India carries interest @10.5% -12% per annum. This loan is repayable in 3 years.

 

d) Details of security for each type of borrowings:-

 

(i) Foreign currency loan from ICICI Bank is secured by subservient charge on all of the Company’s moveable fixed assets, both present and future, save and except plant and machineries at Baska and Chikalthana and any assets charged exclusively to other lenders.

 

(ii) Foreign currency loan from Landesbank Baden Wurttemberg Bank (LBBW) taken in financial year 2008-09 and financial year 2009-10 is secured against hypothecation of machinery financed out of the loan amount at the Company’s plant at Karjan, Vadodara.

 

(iii) Foreign currency loan from HSBC PLC Bank is secured by first pari-passu charge over the entire fixed assets of the Company except assets exclusively charged to Landesbank Baden Wurttemberg Bank (LBBW).

 

iv) Foreign currency loan from IFC Bank is secured by first ranking security interest over all present and future movable and immovable fixed assets except the excluded assets, ranking pari passu with the other lenders.

 

(v) Foreign currency loan from Landesbank Baden Wurttemberg Bank (LBBW) taken in financial year 2012-13 is secured against hypothecation of machinery financed out of the loan amount at the Company’s new plant at Shendra, Aurangabad.

 

(vi) Foreign currency loan from DBS Bank is secured by pari passu charge on the movable and immovable fixed assets both present and future of the Company, except the excluded assets.

 

(vii) Rupee term loan from Kotak Mahindra Bank is secured against mortgage by way of exclusive charge on the immovable properties being commercial properties situated at 1004-1010, 10th floor, DLF Towers, Jasola, New Delhi.

 

(viii) Rupee term loan from IDBI Bank is secured against pari-passu first charge on entire fixed assets of the Company by way of extension except assets exclusively charged to Landesbank Baden Wurttemberg (LBBW)

 

(ix) Rupee term loan from SBI is secured against pari-passu charge with other term lenders on entire fixed assets of the Company, present and future including equitable mortgage of certain properties.

 

(x) Vehicle loans from Union Bank of India are secured against hypothecation of vehicles financed out of the loan amount.

 

e) Current maturities of long term borrowings are disclosed under the head other current liabilities.

 

SHORT-TERM BORROWINGS

 

a) Cash credits/ working capital demand loans/ export packing credits are secured/to be secured by hypothecation of inventories, trade receivable and second charge on fixed assets secured to financial institutions except assets exclusively charged.

 

Cash credit and working capital demand loans from the bank comprises of the following:

 

(i) Cash credit/working capital demand loan of Rs. 300.000 Millions sanctioned by Export Import Bank of India is repayable on demand and carries interest rate @ 11.5% per annum, Libor+4% and 11.75% per annum for PCFC INR, PCFC USD and working capital demand loan respectively.

 

(ii) Cash credit/working capital demand loan of Rs.150.000 Millions sanctioned by CITI Bank is repayable on demand and carries interest as mutually decided.

 

(iii) Working capital demand of Rs. 200.000 Millions sanctioned by HDFC Bank is repayable on demand and carries interest rate as mutually decided.

 

(iv) Cash credit/working capital demand of Rs.150.000 Millions sanctioned by ICICI Bank is repayable on demand and carries interest @ base rate+3.5% per annum.

 

(v) Cash credit/working capital demand of Rs. 250.000 Millions sanctioned by ING Vysya Bank is repayable on demand and carries interest @ base rate+2.55% per annum.

 

(vi) Cash credit/working capital demand of Rs. 550.000 Millions sanctioned by Union Bank of India is repayable on demand and carries interest @ base rate+3% per annum.

 

(vii) Cash credit/working capital demand of Rs.150.000 Millions sanctioned by YES Bank of India is repayable on demand and carries interest @ base rate+2.5% per annum.

 

(viii) Working capital demand loan of Rs.200.000 Millions sanctioned by Kotak Mahindra Bank is repayable on demand and carries interest as mutually agreed.

 

(ix) Cash credit/working capital demand of Rs. 300.000 Millions sanctioned by IDBI Bank is repayable on demand and carries interest @ base rate+2.5% per annum.

 

(x) Cash credit of Rs. 500.000 Millions sanctioned by State Bank of India is repayable on demand and carries interest @ base rate+2.5% per annum.

 

(xi) Cash credit/working capital loan/export packing credit of Rs.200.000 Millions sanctioned by DBS Bank is repayable on demand and carries interest as mutually agreed.

 

b) Overdraft of Rs. 50.000 Millions from HDFC Bank are secured against pledge of the fixed deposits of the Company is repayable on demand and carries interest rate as mutually decided.

 

c) Short term Loans Rs. NIL (Previous year Rs.1000.100 Millions) is taken from Tata Capital Financials Services Limited, has been paid in the current year and carries interest @ 12% per annum

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Walker Chandlok and Company

Chartered Accountants

Address :

21st Floor, DLF Square, Jacaranda Marg, DLF Phase II, Gurgaon – 122002, Haryana, India 

Tel No.:

91-124-4528000

Fax No.:

91-124-4528001

Email:

gurgaon@in.gt.com

 

 

Subsidiary and step-down subsidiary companies:

·         CF Global Holdings Limited, Mauritius

Cosmo Films Inc., USA

CF (Netherlands) Holdings Limited BV., Netherlands

Cosmo Films (Singapore) Pte. Limited, Singapore

Cosmo Films Japan (GK)

Cosmo Films Korea Limited, Korea

 

 

Enterprises over which Key managerial personnel of the Company and their relatives have significant

influence:

·         Pravasi Enterprises Limited

Sunrise Manufacturing Company Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25000000

Equity Shares

Rs.10/- each

Rs. 250.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

19440076

Equity Shares

Rs.10/- each

Rs. 194.400 Millions

 

 

 

 

 

NOTE:

 

Of the above 242,051 (previous year 242,051) shares have been allotted to erstwhile shareholders of Gujarat Propack Limited on amalgamation.

 

Of the above 8,486,705 (previous year 8,486,705) shares have been allotted as fully paid bonus shares by capitalization of capital reserves and share premium account.

 

a) There is no movement in equity share capital during the current year and previous year.

b) Terms and rights attached to equity shares

The Company has only one class of equity shares having the par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.

 

During the year ended 31 March 2013, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 2.50 (previous year Rs. 5 per share). The dividend proposed by Board of Directors is subject to approval of shareholders in Annual General Meeting.

 

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

Details of shareholders holding more than 5% shares in the Company

 

Name of Shareholders

As at 31 March 2013

 

Number of shares held

% of holding

Sunrise Manufacturing Company Limited

3,957,552

20.36%

Pravasi Enterprises Limited

2,271,104

11.68%

 

 

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

194.400

194.400

194.400

(b) Reserves & Surplus

3494.900

3388.300

3123.800

(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)

3689.300

3582.700

3318.200

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

2278.700

1335.300

1129.100

(b) Deferred tax liabilities (Net)

697.100

660.500

647.500

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

17.600

20.900

Total Non-current Liabilities (3)

2975.800

2013.400

1797.500

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1963.000

1683.800

1686.000

(b) Trade payables

894.600

580.300

526.900

(c) Other current liabilities

442.900

407.600

386.200

(d) Short-term provisions

63.000

121.100

113.000

Total Current Liabilities (4)

3363.500

2792.800

2712.100

 

 

 

 

TOTAL

10028.600

8388.900

7827.800

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3670.800

3659.200

3628.100

(ii) Intangible Assets

65.400

71.500

0.000

(iii) Capital work-in-progress

1577.000

38.000

77.700

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1659.900

1209.900

547.900

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

145.200

242.900

84.300

(e) Other Non-current assets

1.400

1.300

1.200

Total Non-Current Assets

7119.700

5222.800

4339.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

795.700

967.100

803.700

(c) Trade receivables

1145.000

1049.900

1782.200

(d) Cash and cash equivalents

138.800

389.600

468.100

(e) Short-term loans and advances

825.000

753.200

424.000

(f) Other current assets

4.400

6.300

10.600

Total Current Assets

2908.900

3166.100

3488.600

 

 

 

 

TOTAL

10028.600

8388.900

7827.800

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

10418.800

9230.500

9416.600

 

 

Other Income

40.600

11.700

68.400

 

 

TOTAL                                     (A)

10459.400

9242.200

9485.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Material Consumed

7066.800

6140.200

6091.500

 

 

Purchase of traded goods

0.000

0.000

1.100

 

 

Increase/(Decrease) in inventories of Finished Goods and work in progress

47.600

(218.400)

(1.200)

 

 

Employees Benefits Expenses

463.00

528.100

474.900

 

 

Other Expenses

2065.900

1782.000

1815.000

 

 

Exceptional Items

57.500

(69.000)

(51.000)

 

 

TOTAL                                     (B)

9700.800

8162.900

8330.300

 

 

 

 

 

Less

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

758.600

1079.300

1154.700

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

227.400

225.000

194.800

 

 

 

 

 

 

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

531.200

2854.300

959.900

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

331.700

301.500

283.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

199.500

552.800

676.900

 

 

 

 

 

Less

TAX                                                                  (H)

58.200

97.100

161.700

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

141.300

455.700

515.200

 

 

 

 

 

 

EXPORT OF GOODS CALCULATED ON F.O.B BASIS

5077.400

4182.200

4628.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1968.200

1593.100

1716.000

 

 

Stores & Spares

38.600

32.200

72.600

 

 

Capital Goods

1017.800

33.900

93.900

 

TOTAL IMPORTS

3024.600

1659.200

1882.500

 

 

 

 

 

 

Earnings Per Share (Rs.)

7.27

23.44

26.50

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

7.25

11.68

12.17

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

7.28

11.69

12.26

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

11.17

15.11

16.03

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.21

0.30

0.35

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.15

0.84

0.85

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.86

1.13

1.29

 

 

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

194.400

194.400

194.400

Reserves & Surplus

3123.800

3388.300

3494.900

Net worth

3318.200

3582.700

3689.300

 

 

 

 

long-term borrowings

1129.100

1335.300

2278.700

Short term borrowings

1686.000

1683.800

1963.000

Total borrowings

2815.100

3019.100

4241.700

Debt/Equity ratio

0.848

0.843

1.150

 

 

 

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

9416.600

9230.500

10418.800

 

 

(1.976)

12.874

 

 

 

 

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

9416.600

9230.500

10418.800

Profit

515.200

455.700

141.300

 

5.47%

4.94%

1.36%

 

 

 

 

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

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

No

 

 

LITIGATION DETAILS

 

IN THE HIGH COURT OF DELHI AT NEW DELHI

    
ITA 188/2012

  
ITA 184/2012

  
ITA 185/2012

 
ITA 186/2012

  
ITA 187/2012

  
ITA 190/2012

  
COMMISSIONER OF INCOME TAX ..... Appellant

  
Through: Mr. N. P. Sahni, Sr. Standing Counsel

  
versus
  
COSMO FILMS LIMITED ..... Respondent

  
Through: Mr. Deepak Chopra, Sr. Standing Counsel.

  
CORAM:
  
HON'BLE MR. JUSTICE SANJIV KHANNA

  
HON'BLE MR. JUSTICE R.V.EASWAR

  
O R D E R

  
21.03.2012

   
To be listed before another Bench of which one of us (R. V. Easwar, J.) is not a member, subject to order of Hon’ble the Acting Chief Justice.

  
List on 28.03.2012.

 
SANJIV KHANNA, J

 

R.V.EASWAR, J

 
MARCH 21, 2012

 
hs

$ 24

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10451915

16/09/2013

300,000,000.00

IDBI BANK LIMITED

IDBI BANK LIMITED, 3RD FLOOR RED CROSS BUILDING, 1 RED CROSS ROAD, NEW DELHI, DELHI - 110001, INDIA

B86125994

2

10425265

20/06/2013 *

600,400,000.00

INTERNATIONAL FINANCE CORPORATION

VIBGYOR TOWERS, 6TH FLOOR, G - BLOCK, C - 62, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, MAHARASHTRA
- 400051, INDIA

B78970860

3

10427044

02/05/2013

200,000,000.00

DBS BANK LIMITED

CAPITOL POINT, BABA KHARAK SINGH MARG, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA

B75595462

4

10422571

15/04/2013

392,000,000.00

DBS BANK LIMITED

CAPITOL POINT, BABA KHARAK SINGH MARG, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA

B73982183

5

10351543

05/04/2012

554,000.00

UNION BANK OF INDIA

11 KRUPA BUILDING, NEAR PATHAN GATE, AURANGABAD, MAHARASHTRA - 431005, INDIA

B38148268

6

10351562

05/04/2012

555,000.00

UNION BANK OF INDIA

11 KRUPA BUILDING, NEAR PATHAN GATE, AURANGABAD,
MAHARASHTRA - 431005, INDIA

B38148011

7

10328207

29/12/2011

560,000.00

UNION BANK OF INDIA

11 KRUPA BUILDING, NEAR PATHAN GATE, AURANGABAD,
MAHARASHTRA - 431005, INDIA

B29492535

8

10328209

29/12/2011

586,000.00

UNION BANK OF INDIA

11 KRUPA BUILDING, NEAR PATHAN GATE, AURANGABAD,
MAHARASHTRA - 431005, INDIA

B29493137

9

10328205

15/12/2011

715,000.00

UNION BANK OF INDIA

11 KRUPA BUILDING, NEAR PATHAN GATE, AURANGABAD,
MAHARASHTRA - 431005, INDIA

B29491859

10

10311334

29/09/2011

600,000.00

UNION BANK OF INDIA

11 KRUPA BUILDING, NEAR PATHAN GATE, AURANGABAD,
MAHARASHTRA - 431005, INDIA

B22998041

 

* Date of charge modification

 

 

UNSECURED LOAN

 

UNSECURED LOAN

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

SHORT-TERM BORROWINGS

 

 

Term Loan

0.000

100.100

 

 

 

Total

 

0.000

100.100

 

 

BACKGROUND AND NATURE OF OPERATIONS

 

Subject manufacturers of Bi-axially Oriented Polypropylene Films (BOPP) was incorporated in India in 1981, under the Companies Act 1956. The Company is engaged in the production of packaging films. Company’s product majorly comprises of BOPP Films and Thermal Films. In India, the Company is currently working at Aurangabad in Maharashtra and at Karjan in Gujarat. It also has its subsidiaries working in different countries.

 

 

OPERATIONS

 

On year to year basis net sales has increased by 11.95% (standalone) and by 10.98% (consolidated). Operational

Profits of the Company has registered a increase of 5.65% (consolidated) however there is a decline of 19.21% (standalone). New plant at Shendra, SEZ, Aurangabad is expected to be commissioned by July 2013.

 

The capacity addition in the industry along with unexpected increase in raw material cost has impacted margins during financial year 2012-2013. However, the Company has taken several steps including cost control to increase operating margins and management is confident on achieving results on these steps.

 

 

EXPORTS

 

Cosmo continues to maintain its position of largest BOPP film exporter from India. Exports registered an increase of 21.40% from Rs.4182.200 Millions in 2011-12 to Rs.5077.400 Millions in 2012-13.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

Since its inception, Cosmo Films has diversified its business model and has shown significant presence in both the domestic as well as international markets. The Company is a leading manufacturer and supplier of BOPP films, such as co-extruded plain, heat sealable matte, white opaque, pearlised metalized films. Cosmo products are used for food and industrial packaging and labels. It also manufactures thermal laminating films and synthetic paper. The Company offers films for wrap around labels, self-adhesive labels and in-mould labels and BOPP films for liners.

 

The Company’s new plant at Shendra SEZ, Aurangabad is being commissioned by July, 2013. With this new plant the total installed capacity would increase to 130,000 TPA (tones per annum) for BOPP, 40,000 TPA for thermal films and 8,000 TPA for metalized films. This new plant would mainly be dedicated to exports.

 

 

ECONOMIC OVERVIEW AND INDUSTRY SCENARIO

 

Pulled down by poor performance of farm, manufacturing and mining sectors, Indian Economic Growth fell to a decade’s low of 5% for the entire 2012-13 fiscal. However, the Indian Plastic industry witnessed strong growth, with strong off-take from industries like packaging, automotive and infrastructure sector during the financial year of 2012-13. However, the consumption of Plastics in India increased by only 6% in the year 2011-12, which shows significant slowdown in the consumption of Plastics in their country in the last year.

 

According to the All India Plastics Manufacturers’ Association (AIPMA), domestic consumption of plastic has been growing at 10-12% CAGR over the last decade.

 

 

OPERATIONAL AND FINANCIAL PERFORMANCE:

 

During the year, turnover of the Company registered a growth of around 11% Y-o-Y with Net Sales of Rs.12485.000 Millions as against Rs.11249.800 Millions in FY’12. (Consolidated No’s) On Standalone basis the turnover increased by around 12%- Rs.10287.600 Millions in FY 2012-13 as compared to Rs.9189.500 Millions in FY 2011-12.

 

The other details of the financial performance are appearing in the financial statements appearing separately in the financial statements. For highlights, please refer to the Directors’ Report forming part of the Annual Report.

 

 

FUTURE OUTLOOK

 

The vision of COSMO FILMS is to become the most preferred brand for packaging and laminating solutions globally. Its mission is to seek global market leadership, development and growth in Oriented and Thermal films, create a winning culture operating in highest standards of ethics and values and to strive for excellence in customer service, quality and R and D.

 

 

AUDITED STANDALONE FINANCIAL RESULTS

 

(RS. IN MILLIONS)

 

 

3 Months Ended

Year Ended

Particulars

31.03.2014

(Audited)

31.12.2013

(Reviewed)

31.03.2014

(Audited)

Part I

 

 

 

Net Sales

3729.100

3298.300

12501.400

Other Operating Income

30.300

10.700

65.500

Total (1)

3759.400

3309.100

12566.900

Expenses:

 

 

 

(Increase) / Decrease Stock

(105.000)

(80.200)

(391.800)

Cost Of Materials Consumed

2793.400

2520.000

9256.100

Power, water and fuel

229.900

249.000

858.600

Employee Benefits Expenses

125.500

142.700

546.300

Depreciation And Amortisation Expense

110.300

110.700

403.400

Other Expenses

338.000

334.200

1261.700

Total

3492.000

3276.400

11934.400

Profit / (Loss) From Operations Before Other Income, Finance Costs & Exceptional Items

267.400

32.600

632.500

Other Income

20.200

50.000

73.800

Profit / (Loss) Before Finance Costs And Exceptional Items

287.600

82.600

706.300

Finance Costs

115.700

117.700

401.900

Profit / (Loss) After Finance Costs But Before Exceptional Items

171.900

(35.100)

304.400

Exceptional Items - Gain / (Loss)

(62.400)

(11.400)

(205.000)

Profit / (Loss) From Ordinary Activities Before Tax

109.500

(46.500)

99.400

Tax Expense

 

 

 

- Current Tax

19.800

(17.600)

15.500

- Earlier Years

3.100

--

3.100

Net Profit / (Loss) From Ordinary Activities After Tax

86.600

(28.900)

80.800

Extraordinary Item (Net Of Tax Expense)

--

--

--

Net Profit / (Loss) For The Period

86.600

(28.900)

80.800

Paid-Up Equity Share Capital (Face Value : Rs 10/- Per Share)

194.400

194.400

194.400

Reserves Excluding Revaluation Reserve

--

--

3558.500

Earnings Per Share (Of Rs. 10 Each) (Before / After Extraordinary Items)

 

--

 

-Basic and Diluted

4.45

(1.48)

4.16

Part II

 

 

 

 

Particulars Of Shareholding

 

 

 

Public Shareholding

 

 

 

-Number Of Shares

11111637

11111637

11111637

- Percentage Of Shareholding

57%

57%

57%

Promoters And Promoter Group Shareholding Pledged/Encumbered

 

 

 

-Number of Shares

NIL

NIL

NIL

- Percentage Of Shares

NIL

NIL

NIL

Non – Encumbered

 

 

 

-Number of Shares

8328439

8328439

8328439

- Percentage Of Shares (As A % Of The Total Shareholding Of Promoter & Promoter Group)

100%

100%

100%

- Percentage Of Shares (As A % Of The Total Share Capital Of The Company)

43%

43%

43%

Investor Complaints

 

 

 

Pending At The Beginning Of The Quarter

Nil

 

 

Received During The Quarter

9

 

 

Disposed Of During The Quarter

9

 

 

Remaining Unresolved At The End Of The Quarter

Nil

 

 

 

 

SEGMENTWISE REVENUE, RESULT AND CAPITAL EMPLOYED

 

 

3 Months Ended

Year Ended

Particulars

31.03.2014

(Audited)

31.12.2013

(Reviewed)

31.03.2014

(Audited)

Segment Revenue

 

 

 

Packing Films

3729.100

3298.300

12501.400

Others

--

--

--

Sub Total

3729.100

3298.300

12501.400

Less: Inter Segment Revenue

--

--

--

Total

3729.100

3298.300

12501.400

 

 

 

 

Segment Results

 

 

 

Profit / (Loss) before tax and interest

 

 

 

Packing Films

231.300

76.100

522.200

Others

--

--

--

Sub Total

231.300

76.100

522.200

Less: Finance Cost

115.700

117.700

401.900

Less: Unallocable expenses net of Unallocable income

6.100

4.900

20.900

Profit from ordinary activity before tax

109.500

(46.500)

99.400

 

 

 

 

Capital Employed

 

 

 

Packing Films

7855.300

7899.100

7855.300

Others

--

--

--

Unallocated

2213.700

2018.200

2213.700

Total

10069.000

9917.300

10069.000

 

 

STATEMENT OF ASSETS AND LIABILITIES

 

Particulars

 

31.03.2014

A. EQUITY AND LIABILITIES

 

1. Shareholders Funds

 

a] Share Capital

194.400

b] Reserves and Surplus

3558.500

Sub-total – Shareholders’ funds

3752.900

 

 

2. Non-current Liabilities

 

a] Long term Borrowings

3068.300

b] Deferred Tax Liabilities

704.000

c] Other current liabilities

0.000

d] Long term provisions

0.000

Sub-total - Non-current Liabilities

3772.300

 

 

3. Current Liabilities

 

a] Short term Borrowings

2018.600

b] Trade Payables

1165.700

c] Other Current Liabilities

675.000

d] Short Term Provision

22.700

Sub-total -  Current Liabilities

3882.000

 

 

TOTAL -  EQUITY AND LIABILITIES 

11407.300

 

 

B ASSETS

 

1. Non-current assets

 

a] Fixed assets

5766.200

b] Non-current investment

1662.800

c] long Term loans and Advances

46.400

d] Other non-current assets

1.500

Sub-total – Non- current assets

7476.900

 

 

2. CURRENT ASSETS

 

 

Current Investments
0.000

 

Inventories
1371.600

 

Trade Receivables
1363.600

 

Cash & Bank Balances
442.400

 

Short Term loans and advances
738.600

 

Other Current Assets
14.200

  Sub-total – Current Assets
3930.400

 

 

TOTAL - ASSETS

11407.300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTES:

 

The Board of Directors have recommended divided of Re. 1 per Equity Share for the year.

 

The above unaudited financial results were reviewed by the Audit Committee and approved by the Board of Director on 20th May 2014. Figures for the quarter ended March 31, 2014 and March 31, 2013 are the balancing figures between the audited figures for the full financial year ended March 31, 2014 and March 31, 2013 and the published to year to date figures upto the third quarter of the financial years.


Exceptional Items during the quarter includes:

 

 

3 Months Ended

Year Ended

Particulars

31.03.2014

(Audited)

31.12.2013

(Reviewed)

31.03.2014

(Audited)

Profit / (loss) on exchange rate fluctuations*

(62.400)

(11.400)

(205.000)


* Due to significant volatillity in foreign currency exchange rates in current year the company has considered profit / (loss) on foreign exchange fluctuation as an exception item and previous periods / year figures have been regrouped accordingly.


Figures for the previous periods / year have been regrouped wherever required.

 

 

FIXED ASSETS

 

·         Freehold Land

Leasehold Land

Land and building

Building

Plant and Machinery

Furniture, Fixture and Fittings

Factory and Office

Equipments

Vehicles

 

 

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. 59.08

UK Pound

1

Rs. 99.20

Euro

1

Rs. 80.53

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

BVA

 

 

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

3

--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

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

43

 

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.