MIRA
INFORM REPORT
|
Report Date : |
31.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
SINTEX INDUSTRIES LIMITED (w.e.f.1995) |
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Formerly Known
As : |
THE BHARAT VIJAY MILLS LIMITED |
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Registered
Office : |
Kalol - 382721, Gujarat |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of Incorporation
: |
01.06.1931 |
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Com. Reg. No.: |
04-000454 |
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Capital
Investment / Paid-up Capital : |
Rs. 311.200
Millions |
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|
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CIN No.: [Company Identification
No.] |
L17110GJ1931PLC000454 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
AHMS00244G |
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PAN No.: [Permanent Account No.] |
AADCS0858E |
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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
: |
Manufacturer of Plastic products like prefabricated structures,
monolithic constructions, FRP products and water storage tanks and niche
structured yarn dyed textiles related products. |
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|
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|
No. of Employees
: |
3358 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 111970000 |
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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 takes into consideration the company’s leadership position
in water tank business supported by well established distribution network
with strong brand name and healthy financial risk profile. Trade relations are reported as fair. Business is active. Payments are
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 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term Bank : AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
March 12, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term debt : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
March 12, 2014 |
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.
LOCATIONS
|
Registered / Corporate Office : |
Kalol - 382721, Gujarat, India |
|
Tel. No.: |
91-2764-223731 (6 Lines)/ 220246/ 220793/ 253000/ 253500/ 224301/ 2/
3/ 4/ 5 |
|
Fax No.: |
91-2764-220436/ 222868/ 253100/ 253800/ 220385 |
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E-Mail : |
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Website : |
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Manufacturing Facilities : |
·
Kalol Near. Seven Garnala, Kalol - 382721, (N.G.), District - Gandhinagar,
Gujarat State, India. ·
Bangalore 61-C, Bommasandra Industrial Estate, Hosur Road, Bommasandra - 562158,
Karnataka State, India. ·
Kolkata Plot No. 40/41, ·
Daman Plot No. 34, 39 / 40, Survey No. 168, Dabhel Industrial Company
Society Limited. Dabhel, Daman ( ·
Baddi ·
Nagpur Plot No. B/124 Batti-Bori, MIDC, Batti-Bori, District Nagpur,
Maharashtra, India. ·
Salem 131, Sandhiyur Attayampatti, Behind S.V.T. School, Via-Mallur, Trichy
Main Road, Salem - 636203, Tamilnadu, India ·
Bhachau Plot No. 1211/1, 1223/24/31, |
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Branch Offices : |
Located at: ·
Ahmedabad ·
·
Kolkata ·
·
Secunderabad ·
·
Chennai ·
·
Pune ·
·
·
Jaipur ·
Mumbai ·
|
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Dinesh B. Patel |
|
Designation : |
Chairman |
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Date of Birth/Age : |
04.07.1934 |
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Qualification : |
B.Sc. |
|
Expertise in
specific functional Area : |
Industrialist
with rich business experience in general. |
|
Date of Appointment : |
25.08.1972 |
|
Other Directorship : |
Denis Chem Lab Limited |
|
|
|
|
Name : |
Mr. Arun P. Patel |
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Designation : |
Vice Chairman |
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Date of Birth/Age : |
06.04.1935 |
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Qualification : |
B.Sc. |
|
Expertise in
specific functional Area : |
Industrialist
with rich business experience in general |
|
Date of Appointment : |
25.08.1972 |
|
Other Directorship : |
Stanrose
Mafatlal Inv. And Finance Limited |
|
|
|
|
Name : |
Mr. Ramnikbhai Ambani |
|
Designation : |
Director |
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|
Name : |
Mr. Ashwin Lalbhai Shah |
|
Designation : |
Director |
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Date of Birth/Age : |
26.11.1936 |
|
Qualification : |
B.com, LLB |
|
Expertise in
specific functional Area : |
Legal Advisor and
Practicing advocate |
|
Date of Appointment : |
24.01.2002 |
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Other Directorship : |
|
|
Name : |
Mr. Rooshikumar Pandya (Upto 13.04.2013) |
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Designation : |
Director |
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|
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Name : |
Dr. Narendra Kumar Bansal (w.e.f.07.05.2013) |
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Designation : |
Director |
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|
Name : |
Mrs. Indira J Parikh |
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Designation : |
Director |
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Name : |
Dr. Rajesh B. Parikh |
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Designation : |
Director |
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Name : |
Dr. Lavkumar Kantilal Shah |
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Designation : |
Director |
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Date of Birth/Age : |
01.04.1957 |
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Qualification : |
M.Sc., MBA, Ph.D., FTA |
|
Expertise in
specific functional Area : |
Industrialist
and adviser with rich business experience in general. |
|
Date of Appointment : |
01.05.2004 |
|
|
|
|
Name : |
Mr. Rahul A. Patel |
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Designation : |
Managing Director [Group] |
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Date of Birth/Age : |
04.10.1959 |
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Qualification : |
B. Com., MBA (USA) |
|
Expertise in
specific functional Area : |
Industrialist
with rich business experience in general. |
|
Date of Appointment : |
21.10.1993 |
|
Other Directorship : |
1)
Sintex Infra Projects Limited 2)
Bright Autoplast Limited |
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|
|
|
Name : |
Mr. Amit D. Patel |
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Designation : |
Managing Director [Group] |
|
Date of Birth/Age : |
29.01.1966 |
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Qualification : |
B. Com., MT (USA) |
|
Expertise in
specific functional Area : |
Industrialist
with rich business experience in general. |
|
Date of Appointment : |
21.10.1993 |
|
Other Directorship : |
1)
Star Line Leasings Limited 2)
Zep Infratech Limited 3)
Sintex Infra Projects Limited 4)
Bright AutoPlast Limited 5)
Sintex Oil and Gas Limited |
|
|
|
|
Name : |
Mr. S.B. Dangayach |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. J.K. Badi |
|
Designation : |
Accounts Manager |
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|
|
|
Name : |
L.M. Rathod |
|
Designation : |
Company Secretary |
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Management Team : |
· Rahul A. Patel Managing Director (Group) Amit D. Patel Managing
Director (Group) S.B. Dangayach Managing
Director Sunil Kumar Kanojia Group
President (Corporate) Sanjib Roy CEO (Plastic
Div.) D.N. Panda President
(Plastic Div.) S.M. Anerao Sr.Vice
President – (Plastic Div.) D.G. Mistry Vice
President – Tech (Plastic Div.) Manish Srivastava Vice
President – (Plastic Div.) Suddhobroto Ghosh Vice
President- Prefab and Project (Plastic Div.) Chetan Joshi Vice
President- (Fin. and A/c) Shashidhar B.C President –
Marketing. (Textile Div.) Ashoke Maitra President –
Opr. and Admn. (Textile Div.) R.A. Sharma President –
Proc. (Textile Div.) Siddhartha Jha President –
Tech. (Textile Div.) J.K. Baid Vice
President- (Fin. and A/c) Rajiv Naidu Head - IR and
PR |
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 |
|
|
|
|
|
|
|
|
2869830 |
0.92 |
|
|
125565933 |
40.10 |
|
|
128435763 |
41.02 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
128435763 |
41.02 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
3571177 |
1.14 |
|
|
18473130 |
5.90 |
|
|
24513327 |
7.83 |
|
|
46557634 |
14.87 |
|
|
|
|
|
|
38194294 |
12.20 |
|
|
|
|
|
|
79390547 |
25.36 |
|
|
9006408 |
2.88 |
|
|
500 |
0.00 |
|
|
11524834 |
3.68 |
|
|
5211044 |
1.66 |
|
|
3834698 |
1.22 |
|
|
2479092 |
0.79 |
|
|
138116583 |
44.11 |
|
Total Public
shareholding (B) |
184674217 |
58.98 |
|
Total (A)+(B) |
313109980 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
313109980 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 Million 
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Plastic products like prefabricated structures,
monolithic constructions, FRP products and water storage tanks and niche structured
yarn dyed textiles related products. |
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Products/ Services : |
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Brand Names : |
“Sintex” |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production (Qty.) |
|
Plastic Unit |
|
|
|
|
|
Thermoplatic Powder Moulding |
Kgs in cr. |
NA |
4.99 |
-- |
|
Extruded Thermo-Plastic Sections |
Kgs in cr. |
NA |
3.88 |
1.01 |
|
Prefabricated Structures / BT Shelters (Qty. in Actual Nos.) |
Kgs in cr. |
NA |
60000.00 |
55485 |
|
SMC / Pultrusion and Articles made thereof, Thermoforming and Blow Moulding
/ Injection Moulding |
Kgs in cr. |
NA |
1.66 |
0.63 |
|
Cloth Packed |
Mtrs. in cr |
-- |
-- |
2.76 |
|
Rotomoulded Products |
Kgs. |
-- |
-- |
2.74 |
|
|
|
|
|
|
|
Textile Unit |
|
|
|
|
|
Looms |
Nos. |
NA |
377 |
2.76 |
GENERAL INFORMATION
|
No. of Employees : |
3358 (Approximately) |
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Bankers : |
· State Bank of India Bank of Baroda IDBI Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Ahmedabad, Gujarat, India |
|
|
|
|
Associate Company : |
BVM Finance Private Limited |
|
|
|
|
Subsidiaries
(Control exists) : |
· Zep Infratech Limited Sintex Holdings B.V. Bright AutoPlast Limited Sintex Infra Projects Limited Sintex Wausaukee Composites Inc. Sintex France SAS Sintex Industries UK Limited Sintex Austria B.V. Amarange Inc. Southgate Business Corp. Wasaukee Composites Inc.- Owosso, Inc. WCI Wind Turbine Components, LLC. Nief Plastic SAS NP Hungaria kft NP Nord SAS NP Slovakia SRO NP Savoie SAS NP Tunisia SARL NP Vosges SAS Segaplast SAS Segaplast Maroc SA Siroco SAS NP Jura AIP SAS NP Poschman Cuba City Real Estate LLC Owosso Real Estate LLC NP Polska SICMO SAS |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
650000000 |
Equity Shares |
Re. 1/- each |
Rs. 650.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
313141780 |
Equity Shares |
Re. 1/- each |
Rs. 313.100
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
313109980 |
Equity Shares |
Re. 1/- each |
Rs. 313.100
Millions |
|
|
Less:- Amount Recoverable from ESOP Trust (face value of equity shares allotted to the Trust) |
|
Rs. 1.900
Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 311.200 Millions |
NOTES:
(i) Reconciliation
of the number of shares and amount outstanding at the beginning and at the end
of the reporting period:
|
Particulars |
Opening
Balance |
QIP
issue during the year |
Conversion of share
warrants into equity shares during the year |
Closing
Balance |
|
Equity shares
with voting rights |
|
|
|
|
|
Year ended 31st
March 2013 |
|
|
|
|
|
- Number of shares |
272990866 |
26519114 |
13600000 |
313109980 |
|
- Amount in Millions |
273.000 |
26.500 |
13.600 |
313.100 |
(ii) Terms/ Rights attached to equity shares
The Company has
only one class of equity shares having a par value of Re. 1/- per share. Each holder
of equity share is entitled to one vote per share. The Company declares and
pays dividend in Indian rupees. The dividend proposed by the Board of Directors
is subject to approval of Shareholders in the ensuing AGM.
(iii) During the year:
The authorized
share capital of the Company was reclassified from Rs. 650.000 Millions
comprising 500000000 equity shares of Re.1/- each and 1500000 preference shares
of Rs.100/- each to Rs.650.000 Millions comprising 650000000 Equity shares of
Re.1/- each in accordance with the Member's approval granted in their meeting
held on November 9, 2012,
26519114 equity
shares were allotted to Qualified Institutional Buyers (QIBs) at price of
Rs.65.90/- per equity share in accordance with Chapter VIII of SEBI (Issue of
Capital and Disclosure Requirements) Regulation, 2009.
13600000 equity
shares were allotted on December 24, 2012 consequent to exercise of option for
conversion of warrants into equity shares, out of issue of 30000000 warrants to
promoter group companies. As at March 31, 2013, 16400000 equity shares of Re.
1/- each are reserved for issuance towards conversion of outstanding share
warrants.
In accordance with
approval of Members at their meeting held on September 17, 2012, step down
foreign currency convertible bonds due in 2017, aggregating to USD 140 million
were issued at a conversion price of Rs. 75.60 per share. (Refer Note 29.6) As
at March 31, 2013, 101775926 equity shares are reserved for issuance towards
Foreign Currency Convertible Bonds (FCCBs).
(iv) Equity shareholder holding more than 5% of equity shares along with
the number of equity shares held is as given below:
|
|
31.03.2013 |
|
|
Class of shares
/ Name of shareholder |
No. of Shares held |
% holding in that class of shares |
|
Equity shares with voting rights |
|
|
|
BVM Finance Private Limited |
78103905 |
24.94% |
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 |
311.200 |
271.100 |
271.100 |
|
(b) Reserves & Surplus |
27,399.100 |
23,067.600 |
21,453.100 |
|
(c) Money received against share warrants |
283.100 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
27,993.400 |
23,338.700 |
21,724.200 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
20,789.400 |
10,741.900 |
18,459.400 |
|
(b) Deferred tax liabilities (Net) |
2,710.300 |
2,294.100 |
1,928.300 |
|
(c) Other long
term liabilities |
64.100 |
51.100 |
46.100 |
|
(d) long-term
provisions |
134.900 |
121.400 |
2,767.100 |
|
Total Non-current
Liabilities (3) |
23,698.700 |
13,208.500 |
23,200.900 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
5,059.600 |
15,922.500 |
5,699.100 |
|
(b)
Trade payables |
2,611.900 |
2,037.700 |
2,484.200 |
|
(c) Other
current liabilities |
1,938.100 |
1,740.600 |
1,387.000 |
|
(d) Short-term
provisions |
285.500 |
2,848.900 |
208.400 |
|
Total Current
Liabilities (4) |
9,895.100 |
22,549.700 |
9,778.700 |
|
|
|
|
|
|
TOTAL |
61,587.200 |
59,096.900 |
54,703.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
21,067.600 |
20,086.200 |
17,859.300 |
|
(ii)
Intangible Assets |
2.800 |
14.500 |
26.200 |
|
(iii)
Capital work-in-progress |
2,071.300 |
758.100 |
562.100 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
9,417.100 |
8,417.100 |
8,417.100 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2,350.300 |
1,578.200 |
1,199.400 |
|
(e) Other
Non-current assets |
329.500 |
2,627.400 |
0.000 |
|
Total Non-Current
Assets |
35,238.600 |
33,481.500 |
28,064.100 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
248.400 |
325.200 |
2,819.200 |
|
(b)
Inventories |
2,009.700 |
1,757.700 |
1,746.900 |
|
(c)
Trade receivables |
12,366.300 |
11,460.700 |
8,381.200 |
|
(d) Cash
and cash equivalents |
3,551.900 |
6,056.300 |
9,004.400 |
|
(e)
Short-term loans and advances |
7,959.500 |
5,971.000 |
4,638.800 |
|
(f)
Other current assets |
212.800 |
44.500 |
49.200 |
|
Total
Current Assets |
26,348.600 |
25,615.400 |
26,639.700 |
|
|
|
|
|
|
TOTAL |
61,587.200 |
59,096.900 |
54,703.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
29,692.600 |
25,625.900 |
26,159.700 |
|
|
|
Other Income |
558.100 |
615.500 |
537.700 |
|
|
|
TOTAL |
30,250.700 |
26,241.400 |
26,697.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
19,611.900 |
16,579.800 |
16,552.000 |
|
|
|
Purchases of Stock-in-Trade |
0.000 |
0.000 |
24.900 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(288.500) |
(43.200) |
53.600 |
|
|
|
Employees benefits expense |
1,064.000 |
944.600 |
931.500 |
|
|
|
Other expenses |
3,422.600 |
2,973.500 |
2,650.200 |
|
|
|
TOTAL |
23,810.000 |
20,454.700 |
20,212.200 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
6,440.700 |
5,786.700 |
6,485.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1,180.900 |
1,104.900 |
868.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
5,259.800 |
4,681.800 |
5,617.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
1,231.800 |
980.500 |
892.500 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL ITEMS |
(903.500) |
(466.400) |
62.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
3124.500 |
3234.900 |
4786.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
432.600 |
937.900 |
1211.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
2691.900 |
2297.000 |
3575.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
13078.100 |
11570.000 |
8886.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
275.000 |
250.000 |
400.000 |
|
|
|
Debenture redemption reserve |
332.700 |
332.700 |
285.800 |
|
|
|
Proposed dividend on equity shares |
219.200 |
177.400 |
177.400 |
|
|
|
Tax on dividend |
35.600 |
28.800 |
28.400 |
|
|
BALANCE CARRIED
TO THE B/S |
14907.500 |
13078.100 |
11570.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB Value of Direct Export |
365.500 |
342.500 |
385.600 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
30.500 |
15.300 |
219.400 |
|
|
|
Stores & Spares |
64.500 |
65.900 |
64.000 |
|
|
|
Capital Goods |
42.000 |
159.900 |
103.500 |
|
|
TOTAL IMPORTS |
137.000 |
241.100 |
386.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
9.45 |
8.48 |
13.19 |
|
|
|
Diluted
|
9.44 |
8.48 |
13.19 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
6159.900 |
7987.600 |
8000.600 |
|
Total Expenditure |
4974.300 |
6373.200 |
6238.500 |
|
PBIDT (Excl OI) |
1185.600 |
1614.400 |
1762.100 |
|
Other Income |
110.000 |
32.800 |
145.100 |
|
Operating Profit |
1295.600 |
1647.200 |
1907.200 |
|
Interest |
364.300 |
379.400 |
372.400 |
|
Exceptional Items |
(37.000) |
(83.800) |
(40.800) |
|
PBDT |
894.200 |
1184.000 |
1494.000 |
|
Depreciation |
327.600 |
327.900 |
332.700 |
|
Profit Before Tax |
566.700 |
856.100 |
1161.300 |
|
Tax |
160.300 |
229.000 |
494.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
406.400 |
627.200 |
666.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
406.400 |
627.200 |
666.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
8.90
|
8.75 |
13.39 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.52
|
12.62 |
18.30 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.24
|
6.48 |
10.47 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.14 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.92
|
1.14 |
1.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.66
|
1.14 |
2.72 |
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 |
271.100 |
271.100 |
311.200 |
|
Reserves & Surplus |
21,453.100 |
23,067.600 |
27,399.100 |
|
Money received against share
warrants |
0.000 |
0.000 |
283.100 |
|
Net
worth |
21,724.200 |
23,338.700 |
27,993.400 |
|
|
|
|
|
|
long-term borrowings |
18,459.400 |
10,741.900 |
20,789.400 |
|
Short term borrowings |
5,699.100 |
15,922.500 |
5,059.600 |
|
Total
borrowings |
24,158.500 |
26,664.400 |
25,849.000 |
|
Debt/Equity
ratio |
1.112 |
1.142 |
0.923 |
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 |
26,159.700 |
25,625.900 |
29,692.600 |
|
|
|
(2.041) |
15.869 |
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 |
26,159.700 |
25,625.900 |
29,692.600 |
|
Profit |
3575.600 |
2297.000 |
2691.900 |
|
|
13.67% |
8.96% |
9.07% |
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
No |
|
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 |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10397351 |
07/01/2013 * |
6,500,000,000.00 |
STATE BANK OF
INDIA CAG AHMEDABAD BRANCH ACTING AS |
CAG BRANCH, 58,
SHRIMALI SOCIETY, MITHAKHALI SIX |
B66923731 |
|
2 |
10400951 |
07/01/2013 |
4,500,000,000.00 |
STATE BANK OF
INDIA CAG AHMEDABAD BRANCH ACTING AS |
CAG BRANCH, 58, SHRIMALI
SOCIETY, MITHAKHALI SIX |
B67229468 |
|
3 |
10368793 |
12/07/2012 |
4,500,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG., GROUND
FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001, MAHARASHTRA, INDIA |
B45006236 |
|
4 |
10333277 |
31/01/2012 * |
3,250,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE
ACCOUNTING GROUP, 58, SHRIMALI SOCIETY, |
B32196958 |
|
5 |
10228658 |
20/08/2010 * |
3,500,000,000.00 |
IL & FS
TRUST COMPANY LIMITED |
IL & FS
FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI
- 400051, MAHARASHTRA , INDIA |
A92122035 |
|
6 |
10156236 |
27/01/2010 * |
2,500,000,000.00 |
IL & FS
TRUST COMPANY LIMITED |
IL & FS
FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI
- 400051, MAHARASHTRA , INDIA |
A79571733 |
|
7 |
10091760 |
27/01/2010 * |
1,750,000,000.00 |
STATE BANK OF
INDIA FOR ITS OWN BEHALF AND ON BEHALF OF BANK OF BARODA |
CORPORATE
ACCOUNT GROUP, 58, SHRIMALI SOCIETY, NAVRANGPURA, AHMEDABAD - 380009,
GUJARAT, INDIA |
A79814844 |
|
8 |
10014919 |
27/01/2010 * |
750,000,000.00 |
IDBI BANK
LIMITED |
IDBI COMPLEX,
LAL BUNGLOW, OFF C G ROAD, AHMEDABAD - 380006, GUJARAT, INDIA |
A79572277 |
|
9 |
10003517 |
27/01/2010 * |
1,500,000,000.00 |
STATE BANK OF
INDIA |
CORPORATE ACCOUNT
GROUP, 58, SHRIMALI SOCIETY, NAVRANGPURA, AHMEDABAD - 380009, GUJARAT, INDIA |
A79815254 |
|
10 |
90103562 |
27/01/2010 * |
470,000,000.00 |
BANK OF BARODA |
KALOL, (NORTH
GUJARAT BRANCH), KALOL - 382721, GUJARAT, INDIA |
A79675443 |
|
11 |
90103215 |
31/01/2012 * |
12,250,000,000.00 |
STATE BANK OF
INDIA ON ITS OWN BEHALF AND ON BEHALF OF BANK OF BARODA AND IDBI BANK LIMITED |
CORPORATE
ACCOUNT GROUP, 58, SHRIMALI SOCIETY, NAVRANGPURA, AHMEDABAD - 380009,
GUJARAT, INDIA |
B32197691 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Foreign Currency Convertible Bonds |
7614.500 |
0.000 |
|
SHORT TERM BORROWINGS |
|
|
|
Loans repayable on demand From banks |
2112.400 |
1000.000 |
|
Zero Coupon Foreign Currency Convertible Bonds |
0.000 |
11510.200 |
|
|
|
|
|
Total |
9726.900 |
12510.200 |
CORPORATE INFORMATION
Sintex Industries Limited, the flagship company of Sintex group is
a public company domiciled in India and incorporated in 1931 under the
provisions of the Companies Act, 1956. It is headquartered in Kalol in Gujarat.
Its shares are listed on NSE, BSE and ASE in India. The Company is one of the
leading providers of plastics and niche structured yarn dyed textiles related
products in India. Initially the Company started its operations in textile and
diversified in plastic business in mid 70s. The plastic division manufactures
products which includes prefabricated structures, monolithic constructions, FRP
products and water storage tanks.
SCHEME OF ARRANGEMENT
A Scheme of Arrangement (the "Scheme") between the Company and its equity Shareholders was approved by the Board of Directors vide its resolution dated 30th June, 2008, by the Shareholders in their Court convened meeting held on 15th September, 2008 and by the Honourable High Court of Gujarat vide its order dated 25th March, 2009. The Appointed Date of the Scheme was 1st April, 2008. The Company filed the Order with the Registrar of Companies, Gujarat on 14th April, 2009 within the time specified in the order and the Scheme had been given effect in the financial statement for the financial year ended on 31st March, 2010. Accordingly, as per the Scheme, from the said date, the Company earmarked Rs.2000.000 Millions from Securities Premium Account to International Business Development Reserve Account (the "IBDR").
As per the Scheme, the balance of IBDR so earmarked is available towards such expenses as specified under the Scheme. Accordingly, during the year, the Company has adjusted against the earmarked balance of IBDR an amount of Rs. 51.600 Millions (previous year Rs. 44.200 Millions) being such specified expenses as per the Scheme. The said accounting treatment has been followed as prescribed under the Scheme and it has no impact on the profit for the year, as per the Scheme.
FINANCIAL
PERFORMANCE
The Company’s performance was commendable despite the Government’s
preoccupation in managing multiple politico-economic issues which put economic
progress on the backburner.
The Company’s posted a gross turnover of Rs. 30597.700 Millions in
2012-13 – a growth of 16.36% over Rs. 26296.500 Millions in 2011-12. The growth
was primarily due to the robust performance of the prefab business supported by
growth in the domestic custom moulding.
The Company’s flagship business segment – monolithic construction
reported a subdued performance. This was primarily due to the management’s
timely decision to optimise the Company’s exposure in monolithic construction
business due to a stretched receivables cycle from some projects which
adversely impacted project profitability and business liquidity.
EBIDTA grew to Rs. 6440.700 Millions against Rs. 5786.700 Millions in
the previous year, while Net Profit climbed to Rs. 2691.900 Millions against
Rs. 2297.000 Millions over the same period. The earning per share stood at Rs.
9.46 (basic) and Rs. 9.44 (diluted) in 2012-13.
Cash plough back into the business was Rs. 5259.800 Millions in 2012-13
as against Rs. 4681.800 Millions in 2011-12 – providing an adequate cushion for
funding growth initiatives.
BUSINESS REVIEW
AND DIVISIONAL PERFORMANCE
A. PLASTICS
DIVISION
The Company’s plastics business performed well. Revenue grew 19.72% from
Rs. 21618.300 Millions in 2011-12 to Rs. 25880.600 Millions in 2012-13 despite
a strategic decision to curtail the Company’s business exposure in the monolithic
construction space. The plastics business contributed 90.93% of the Company’s
consolidated revenues.
The building products division registered a subdued performance
primarily due to the curtailed business exposure to monolithic construction. In
this division, the prefab business was the star performer in 2012-13 clocking
large business volumes from Maharashtra and Madhya Pradesh by sprucing up the
educational and sanitation-related infrastructure of the states. The healthy
growth largely cushioned the fall in revenue from the monolithic business. This
was a result of a strategic management decision to curtail the Company’s
business exposure in the monolithic construction space, to sustain business
profitability and liquidity despite external adversities beyond the control of
the Company.
Other businesses namely water storage tanks, sandwich panels and
sub-ground structures registered considerable growth.
The custom moulding division performed satisfactorily during the year.
The SMC business remained the key growth contributor as the Company extended
its footprint into new states generating heartening volumes.
B. TEXTILES
DIVISION:
Despite a depressed global textile sector, the Company’s textile
business managed to end the year with a turnover of Rs. 4717.100 in 2012-13
against Rs. 4678.200 in 2011-12. This was achieved primarily due to the shift
in focus from the international markets to the domestic customers. Besides, the
Company undertook a number of initiatives to optimise costs and widen its reach
in the domestic markets which contributed to the division’s stable performance.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW
Global economy: Global gross
domestic product (GDP) grew 3.2% in 2012 against 3.9% in 2011 - after having
hit another bout of turbulence in what was always expected to be a slow and
bumpy recovery. The key impediments were prolonged financial eurozone turmoil,
instability in the US economy due to the fiscal cliff, disruption of global oil
supplies and slow investments in emerging markets. Economic conditions improved
in the third quarter of 2012, primarily due to acceleration in emerging market
economies and in the US, where surprising growth was registered.
Estimates for 2013: On the brighter
side of things, global growth is projected to increase during 2013 as factors
decelerating global commerce are expected to wane. However, this upturn is
projected to be more deliberate and time-consuming. Overall it can be said that
the development rate of the world economy can be pegged at 3.5% in 2013
Four years after the onset of the global financial crisis, the worst
appears to be over. However, the global economy remains convalescent, as
high-income countries continue to suffer from the aftermath of the continuing
volatility and subdued growth. The World Bank expects the world economy to grow
by 2.4% in 2013.
The US: The U.S. economy
shrank for the first time in more than three years (in the fourth quarter),
underscoring the halting nature of the recovery. Gross domestic product — the
broadest measure of goods and services churned out by the economy — fell at a
0.1% annual rate in the fourth quarter of 2012, according to the Government’s
initial estimate. Despite the year-end stumble, the U.S. still grew more in
2012 than it did a year earlier - economic growth increased to 2.2% from 1.8%.
Looking ahead, economists are predicting that the U.S. economy will bounce back
in the first quarter of 2013 and report a 2% to 2.5% growth in 2013.
Europe: The debt crisis
and government efforts to curb spending have further weakened many economies.
The crisis first afflicted some of the smaller economies, but is now
threatening larger nations. This has impacted the growth of the entire region.
In 2012, GDP fell by 0.5% in the euro area and by 0.3% in the EU27.
Going ahead, in the euro area, real GDP is projected to contract by
about 0.25 % this year before growing again in 2014. Credit channels are
broken: better financial conditions are not yet passing through to companies
and households because banks are still crippled by poor profitability and low
capital. Other brakes on growth in the euro area include continued fiscal
adjustment, problems regarding competitiveness, and balance sheet weaknesses.
India: Industrial
production slowed sharply for the second year running, declining to 5% in
2012-13 following 6.2% in 2011-12. This was the slowest economic progress in a
decade, primarily due to sharper than expected deceleration in the services
sector, a dismal performance by the agricultural and industrial sectors and
unemployment remaining appreciably above pre-crisis levels. The industrial
sentiment remained dampened due to the following factors: high inflation eroded
margins; high interest rate hikes throttled investments and currency
fluctuations adversely impacted profitability.
Going ahead, India
is expected to return to growth: 6.1-6.7% (Economic Survey) and 6.7% (CRISIL)
in 2013-14 based around a revival in private consumption catalysed by a faster
growth in the agricultural sector (assuming a normal monsoon), lower interest
rates and higher government spending.
THE PLASTICS
SECTOR
The plastics sector is one of the fastest growing spaces in India. The
Indian plastics processing industry is highly fragmented, comprising of more
than 25,000 firms -- the top 100 players, represent only about 0.3% of the
total number of plastics processors and account for about 20% of the industry
size. The industry also consumes recycled plastic, which constitutes about 30%
of total consumption.
PLASTIC PROCESSING
The plastics industry can be classified into (a) manufacturing of
polymers, or ‘upstream’ processes, and (b) the conversion of polymers into
plastic articles, which is commonly referred to as ‘downstream’ processes. The
processes for conversion of polymers determine the final products.
OUTLOOK
According to the All India Plastics Manufacturers’ Association (AIPMA),
domestic consumption has been growing at 10-12% CAGR over the last decade.
Going ahead, the size of the plastic processing industry – which currently
stands at Rs. 850 billion (9 million tonnes), is expected to touch Rs. 1.3
trillion (18.9 million tonnes) by 2015. The exponential growth will see this
number go up to 40,000 units; employment will increase to 7 million by 2015
from the current 3.5 million-plus people (direct and indirect). To achieve this
target, India will require 42,000 new machines and an investment estimated at
US$10billion by 2015.
THE COMPANY
From humble beginnings as a fabric manufacturer, Sintex is today one of
the most respected plastic processing company in India. Having, transformed
water storage in India with its black water tanks, Sintex has come a long way
developing pioneering for number of applications. Today, Sintex, a business
‘Superbrand’ is a plastic processing MNC with operations in 13 manufacturing
locations and 12 nations across four continents.
The Company has divided its business into two segments namely plastics
and textiles – the plastics business contributes more than 90% of the Company’s
topline.
A) PLASTICS
BUSINESS
Sintex offers a one of the widest wide plastic-based solution in global
plastic processing space – from creating housing units to small components that
find application in the medical equipment and electrical businesses. It is the
only Indian plastic processing company with a pan-India manufacturing presence
and manufacturing operations in 12 nations to cater to the global demand.
The Company’s plastics business performed well. Revenue grew 16.30% from
Rs. 40663.600 Millions in 2011-12 to Rs. 47294.300 Millions in 2012-13 despite
a strategic decision to curtail the Company’s business exposure in the
monolithic construction space, its key vertical in the plastics business in
keeping with the external adversities beyond the control of the Company.
This growth was largely attributed to the healthy performance in the
prefab segment which significantly cushioned the slide. Other business verticals
within the plastics segment also registered a healthy growth. Despite of Input
cost prices and inflation EBIDTA increased to Rs. 7298.900 in 2012-13 against
Rs. 6606.500 Millions in 2011-12. The plastics business contributed 90.93% of
the Company’s consolidated revenues.
The Company has further divided the plastic business into two major
verticals namely building products and custom moulding based on the business
characteristics and customer profile. This has facilitated focused efforts in
developing each segment individually.
I) BUILDING
PRODUCTS
As the name suggests, this business vertical provides products that
finds application in residential, commercial and industrial structures, and
comprised a number of sub-verticals:
· Monolithic concrete construction (MCC)
Prefabricated
structures
Water
storage tanks
Interiors
Sub-ground
structures and waste management solutions
A) MONOLITHIC CONCRETE CONSTRUCTIONS
This business, a key revenue contributor and growth engine for the building
products vertical and the entire Company, witnessed a very challenging year.
This was largely due to the following reasons:
· Government’s persistent fire-fighting on multiple fronts impeded decision-making and staggered payments
High
interest costs due to an expanded working capital cycle which impacted business
margins
To maintain business profitability, the Company took a strategic
decision to focus on executing projects which provided cash-flow visibility.
Additionally, the Company has strategised to restrict its geographic spread to
ensure fast project execution of its order book.
During the year, the Company completed a major part of the development
of the single-largest township in Delhi comprising 600 buildings. It also
exited seven slow-moving sites through work completion and negotiated with its
clients for faster fund disbursement.
The Company continued to maintain an order book comprising 24 months of
business. A sizeable proportion of these orders comprised tall structures
(above G+5 structures) and MIG projects.
B) PREFABRICATED STRUCTURES
This business was the star performer for the Company in 2012-13 with the
business registering a more than 20% growth; it largely covered up for the
reduced MCC business.
The Company’s key enjoys important competitive advantages which
positions it as one of the preferred partners for prefabricated solutions
· A five-plant manufacturing presence (allows faster execution and optimised logistics cost)
A
product mix comprising medium and small structures enables it to cater to
diverse demands
In-house
availability of majority of the inputs namely the sandwich panels, doors and
windows improving the speed from order acceptance to final delivery
A
wide opportunity canvass comprising product approvals in 17 States
The strong performance was due to increased government spending towards
healthcare and education.
The Company received large business from Maharashtra for setting up
kitchens in schools for the State Government sponsored mid-day meal scheme. It
executed a sizeable portion of the order which resulted in a robust growth. It
also received sizeable business from the Madhya Pradesh Government to set up
dispensaries, primary and community healthcare centres across the entire state
to improve the health infrastructure for its people.
The Company’s endeavour to popularise prefab solutions through its
unique ‘do-it-theself’ kits being marketed through its channel partners also
resulted in sizeable business.
The prefab order book (as on March 31, 2013) provides business
visibility for about 18-24 months.
Sandwich panels: Sintex positioned its sandwich panels, colour-coated
steel sheets with packing material in between, as the preferred solution for
cold chain infrastructure and the ideal building material for external and
internal walls and partitions and roofs due to its superior insulation
properties. This business performed excellently due to the increased offtake
for industrial applications namely manufacturing plant and cold storages by
corporates and Government agencies. The Company also launched ‘Comfia’ a
branded roofing solution through select channel partners to increase its B-C
business; this would also enhance its brand visibility. The Company possesses
sizeable orders for sandwich panels for industrial, roofing and warehousing
applications which will be executed in the next 6-12 months.
C) WATER STORAGE TANKS
Water storage tanks revolutionised Sintex from a corporate brand in
Kalol to a house-hold name known across India. Despite significant competition
from national, regional and local players the Company maintains its dominance
in this space with a more than a 60% share and continues to enjoy a significant
premium in this business.
The huge product range comprises every conceivable application – loft
tanks in individual apartments to water storage solutions for an entire pin
code – positioning it as the preferred name in this business.
This business recorded healthy growth largely driven by an increasing
acceptability of its new triple-wall white storage tanks, a premium-end
product. The Company’s Reno brand, targeted to the rural masses, also recorded
sizeable growth. The Company also secured large orders for large volume water storage
tanks from the Uttar Pradesh Government which was partly executed in 2012-13.
Sintex also received orders for extra-large (5 lac litres) panel tanks from
states across Western and Eastern India.
The Company took a strategic decision to convert the manufacturing
process of its Reno tanks to the Blow Moulding technology moving away from the
Roto Moulding process. This would improve productivity and optimise operational
costs.
D) INTERIORS
The Company marketed these environment-friendly solutions to replace
traditional timber, aluminium and steel with numerous advantages -- low-cost
maintenance, rust, water and termite-proof, light-weight and easy-to-install.
In 2012-13, the Company launched Indiana Doors, a completely new range of doors
with sophisticated designs and looks which comprised kitchen and internal doors
for houses. The team successfully marketed about 2,000 doors in the first year
of launch and is creating avenues to multiply this number in 2013-14.
E) SUB-GROUND STRUCTURES
Sub-ground structures represented a new focus area for the Company. This
business comprised pollution management solutions namely manhole structures
with covers, septic tanks, packaged waste water treatment systems and biogas
plants. These products are primarily targeted at municipal corporations of
various states and the private sector.
Septic tanks: The Company
developed underground septic tanks for storage of liquid waste – an extension
of its robust water storage tanks business. These tanks can handle liquid waste
disposal for population clusters of 50-500 people. Largely a B-G (business to
government) business, the Company secured approvals from important municipal
corporations of metro cities for its products. In addition, it leveraged the
space-saving USP of the product to successfully market them to the organised
builder community.
Packaged waste water treatment solution: Sintex developed the decentralised packaged waste water treatment
solution in collaboration with Aqua Nishihara (Japan), global leaders in waste
water management and treatment. This unique solution reduces the BOD levels by
75-95% depending on the product. The solution provides three variants
(depending on the waste treatment facility) and in two sizes -- the small-sized
solution for individual or a cluster of houses and the medium-sized solution
for gated communities, small industrial plants and retail infrastructure.
This is a significant step in reducing the load on the hugely outdated
and inadequate pollution management infrastructure of metros and Tier-I and
Tier-II cities.
The Company created a special marketing team to strengthen the awareness
of this novel solution among builders, architects, consultants and governmental
agencies. As a result it has received approval from the governmental agencies
for various states and the private sector builder community which yielded
heartening results. In 2012-13 the Company successfully completed more than 100
installations. This number is expected to grow significantly over the coming
years.
Biogas holders: This waste
management solution designed for the village community converts excreta from
cows into household fuel, electricity, and fertilisers facilitating the
maintenance of a healthy environment. The product received approvals from
multiple government agencies in states as it addressed an important priority –
providing clean energy to villages. During the year, the Company marketed large
volumes to Gujarat, Maharashtra, Karnataka, Tripura and Kerala.
II) CUSTOM
MOULDING DIVISION
The business segment has two important verticals:
1) Products customised to applications
The products customised to application are SMC products, industrial
containers, pallets, FRP tanks and insulated boxes.
2) Products
customised to customer specifications
The products customised to client specifications are largely components
for off-the--road vehicles and non-automotive applications. This segment is
largely based out of Kalol and leverages the entire production process range of
this plant catering to MNCs operating out of India.
This product development cycle for the business segment is circuitous
(especially for customer-specific products), but provides long-term revenue
visibility once they receive the seal of approval.
A) SMC PRODUCTS
This - are design-based products that address the burning issue of power
theft in the last mile energy distribution in the Indian power distribution space.
The main products of this business comprise tamper-proof enclosures of
different sizes for housing various meters and equipments. The Company has
secured product approvals across India under the Electrical Reform Programme
initiated by the Central Government.
The Company continuous endeavour in showcasing the benefits of its
product in controlling power theft among governmental agencies and corporates
in the power distribution space yielded satisfying results. It received large
orders for various enclosures from Uttar Pradesh, Karnataka and Andhra Pradesh.
Considerable business was secured from the private sector players in energy
distribution. It also received product approvals from discoms in Maharashtra
which should yield significant business in the coming years.
B) INDUSTRIAL
CONTAINERS
As the name suggests, these are large industrial tanks for storage dyes,
colours, chemicals and fuel available in multiple sizes to suit diverse
industrial uses. Rising industrialisation and increasing thrust towards a safe
working environment accelerated the demand for these products.
C) PALLETS
The Company manufactures lightweight, cost-effective and customised
plastic pallets, catering to various industries like pharmaceuticals,
automotive, electrical, engineering, textiles, fisheries, and logistics and
warehousing, among others. The pharmaceutical sector is the key customer for
the Company’s pallets, which comply with the established FDA norms. In 2012-13,
pallet sales increased primarily due to an increase in demand from the food and
pharmaceutical sectors. The governmental thrust on improved logistics and
creating sophisticated warehousing infrastructure is expected to increase
volumes for this business over the medium term.
D) FRP TANKS
The Company launched high-strength, non-corrosive and non-reactant FRP
storage tanks especially suited for storing chemical and petroleum products at
fuel dispensing stations – as a replacement to RCC and steel tanks which, over
time, get corroded resulting in leakages and soil contamination. IOCL, HPCL and
BPCL have approved these tanks for use in all its new dispensing stations,
pan-India – a sizeable opportunity over the coming years. In 2012-13, the
Company successfully installed more than 1,500 FRP tanks at various locations
throughout the country.
E) INSULATED BOXES
The Company manufactures insulated boxes which are primarily exported to
Australia. It product range includes large-sized boxes (up to 1000 litres) for
the food processing, fisheries, ice-cream, soft drinks and related sectors.
Sintex positioned their insulated boxes as part of their cold chain management
solution – a sector that is high on the priority list for the government. This
allowed it to promote insulated boxes through governmental programmes such as
NRHM.
Sintex strengthened the visibility of these boxes in Tier-II and
Tier-III towns and rural areas facing acute electricity shortage as a preferred
solution for storing perishable commodities. The Company also markets its boxes
to governmental agencies for their vaccination programmes. For growing its
international business, the Company widened its global footprint across two
more nations – this also derisked the business from an over dependence on a
single geography.
F) CUSTOM MOULDING
FOR OEMS
This business largely facilitates in filling spare capacity and is
concentrated at the Company’s mother unit at Kalol. Over the years, the Company
successfully developed a number of customised products for large and
globally-respected corporates. They include:
· Fuel tanks and mud guards to M and M, AMW, Ashok Leyland and Escorts for off-the-road vehicles
Fuel
tanks for generator set manufacturers namely Kirloskar and Cummins
Components
for the cooling tower sector
Enclosures
to leading corporates in the electrical sector
Starter
panel boxes for pumps and motors for the agricultural industry
Packaging
crates for the engineering sector
In 2012-13, the Company sustained business volumes with its marquee
customers; business environment and inflationary pressures halted any new
product development during the year.
THE TEXTILE SECTOR
Textile sector and
the economy: The Indian textile industry enjoys an overwhelming presence in the
economic scheme of things as it contributes 4% to the country’s GDP, approximately
14% to industrial production, and 12% of the country’s total exports and is the
second largest employment provider. India’s commercial banks enjoy an exposure
of about Rs. 1.60 lakh cr to the country’s textile sector. Performance: The
Indian textiles sector rebounded after a catastrophic 2011-12. As per CMIE
estimates, industry sales grew about 7.5% backed by higher volumes and improved
realisations; total yarn production increased about 6.8% while fabric
production grew about 7.1%.
On the exports front, demand remained sluggish across the textile value
chain in 2012. Order sizes reduced for apparel exporters, resulting in reduced
volumes. However, rupee realisations increased partly following rupee
depreciation (against the USD and the Euro) leading to moderate revenue growth.
The year was marked by margins stability for textile players across the
value chain led by steady cotton prices. After trending upwards over
June-August 2012, raw cotton prices declined in September 2012 due to
higher–than-expected domestic arrivals of cotton.
The textile sector (including dyed and printed) attracted foreign direct
investments worth Rs. 56564.200 Millions (US$ 1.04 billion) during April 2000
to November 2012.
INDIAN COTTON
INDUSTRY
OVERVIEW
· Cotton is the principal livelihood for an estimated 60 million Indians (including six million farmers).
Cotton
provides 65% of fibre used in India’s textile industry.
Cotton
provides a million tonne of cooking oil.
Cotton
supplies a million tonne of animal feed.
Cotton
contributes 40 million tonnes of biomass (in the form of cotton plant stalk).
India
accounts for a third of the global cotton acreage but a fifth of the global
cotton production
In 2002, India had 7.7 million hectares of land under cotton cultivation.
A decade later in 2011-12, the area under Bt cotton cultivation in the country
stood at 12.1 million hectares, which is about 90% of the total land under
cotton cultivation in the country. The cotton yield per hectare has increased
by 60 percent since 2002.
TEXTILE BUSINESS
Sintex carved a niche in the value-added textile segment through the
manufacture of high-end yarn-dyed structured fabrics for men’s shirting,
yarn-dyed corduroy, ultima cotton yarn-based corduroy and fabrics for women.
This business is a value-driven, margin accretive business which contributes
only about 10% to the Company’s topline - its contribution to the Company’s
profitability is actually more pronounced.
The textile business is largely export-oriented with majority of the output
being exported (directly or indirectly) to global fashion labels. Its other
customers are reputed male and female apparel brands in India.
A dull global market due to the persisting economic slowdown in Europe
adversely impacted product exports. This was more than made up by increasing
volumes in the domestic market and a significant increase in the
ready-to-stitch fabrics. As a result, the Company has managed to maintain
turnover of Rs. 4717.000 Millions as against Rs.4678.200 Millions in 2011-12.
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31,
2013
(RS.
IN MILLIONS)
|
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
Income from Operations |
|
|
|
|
Net Sales/Income from Operations |
7990.213 |
7963.095 |
22102.063 |
|
Other Operating Income |
10.348 |
24.503 |
45.962 |
|
Total Income from
operations (net) |
8000.561 |
7987.598 |
22148.025 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of Material consumed |
5202.821 |
5331.789 |
14296.377 |
|
(b) Purchase of stock in trade |
0.000 |
0.000 |
0.000 |
|
(c) Changes in inventories of finished goods, work in progress
and stock in trade |
(13.305) |
47.741 |
246.688 |
|
(d) Employee benefit expenses |
274.992 |
268.508 |
803.848 |
|
(e) Depreciation and amortization expenses |
332.691 |
327.897 |
988.135 |
|
(f) Other Expenses |
773.962 |
725.152 |
2239.017 |
|
Total Expenses |
6571.161 |
6701.087 |
18574.065 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
1429.400 |
1286.511 |
3573.960 |
|
Other Income |
145.087 |
32.819 |
287.889 |
|
Profit/ Loss from Ordinary
Activities before Finance costs and Exceptional item |
1574.487 |
1319.330 |
3861.849 |
|
Finance costs |
372.385 |
379.417 |
1116.142 |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Exceptional item |
1202.102 |
939.913 |
2745.707 |
|
Exceptional
item - Net Foreign
Exchange Gain/ (Loss) on Long Term Foreign Currency Monetary Items |
(40.832) |
(83.774) |
(161.647) |
|
Profit/ Loss from Ordinary Activities
before tax |
1161.270 |
856.139 |
2584.060 |
|
Tax Expenses |
494.400 |
228.993 |
883.693 |
|
Net Profit/ Loss from Ordinary Activities
after tax |
666.870 |
627.146 |
1700.367 |
|
Extraordinary
Items |
-- |
-- |
-- |
|
Net Profit for the period |
666.870 |
627.146 |
1700.367 |
|
Paid- up
Equity Share Capital (Face value of
the share – Rs. 10) |
311.187 |
311.187 |
311.187 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
|
|
|
|
Earnings per
share (before extraordinary items) (of Rs. 10/-
each) (not annualized) -
Basic |
2.14 |
2.02 |
5.46 |
|
- Diluted |
2.14 |
2.02 |
5.46 |
|
Earnings per
share (after extraordinary items) (of Rs. 10/-
each) (not annualized) - Basic |
2.14 |
2.02 |
5.46 |
|
- Diluted |
2.14 |
2.02 |
5.46 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public
shareholding |
|
|
|
|
Number of
Shares |
197123265 |
199901215 |
197123265 |
|
Percentage of Shareholding |
62.96% |
63.84% |
62.96% |
|
2. Promoters
and promoter group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of Shares |
74800000 |
36400000 |
74800000 |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
64.49% |
32.15% |
64.49% |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
23.89% |
11.63% |
23.89% |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of
Shares |
41186715 |
76808765 |
41186715 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter group) |
35.51% |
67.85% |
35.51% |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
13.15% |
24.53% |
13.15% |
|
|
Particulars |
Quarter
Ended 31.12.2013 |
|
B |
Investor complaints
(Nos.) |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
8 |
|
|
Disposed of during the quarter |
8 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES:
1)
The above Standalone unaudited financial results
were reviewed by the Audit Committee and approved by the Board of Directors in
their respective meetings held on 30.01.2014.
2)
In view of the prevailing situation in the telecom
infrastructure industry, the company has decided to sell its long term
investment in its wholly owned subsidiary, viz. Zep Infratech Limited. As on
31.12.2013, the Company has an equity investment of Rs. 1110.000 Millions and
outstanding advance of Rs. 678.800 Millions to the subsidiary company. The
Company has received a few offers in this respect and the same are under
negotiations. The management does not envisage any loss in this respect at this
stage. Adjustment that may be necessary to the carrying amount of exposure,
(equity investment/ loan) is currently not determinable and will be made in the
last quarter, upon finalization of the terms.
3)
During the period the Company entered into certain
arrangements for rev=covering interest from various parties to whom business
advances were given in past. An interest income of Rs. 592.554 Millions has
consequently been recognized in this quarter – which is netted off against
finance cost.
4)
The Statutory Auditors have carried out a limited
review of the Standalone Financial Results for the quarter ended 31.12.2013.
5)
Figures for the previous quarter and year have been
regrouped/ rearranged, wherever necessary.
SEGMENT – WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(RS. IN MILLIONS)
|
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
1. Segment Revenue |
|
|
|
|
a. Textile |
1524.719 |
1312.776 |
3952.137 |
|
b. Plastics |
6475.842 |
6674.822 |
18195.888 |
|
c. Unallocated |
145.087 |
32.819 |
287.889 |
|
Total |
8145.648 |
8020.417 |
22435.914 |
|
Less: Inter – segment revenue |
-- |
-- |
-- |
|
Total income from operations (net) |
8145.648 |
8020.417 |
22435.914 |
|
|
|
|
|
|
2. Segment Results |
|
|
|
|
Profit/ (loss) before tax and interest |
|
|
|
|
a. Textile |
208.797 |
158.933 |
458.132 |
|
b. Plastics |
1256.684 |
1165.367 |
3227.201 |
|
c. Unallocated |
68.174 |
(88.744) |
14.869 |
|
Total |
1533.655 |
1235.556 |
3700.202 |
|
Less: Finance Costs |
372.385 |
379.417 |
1116.142 |
|
Other un-allocable expenditure net off |
-- |
-- |
-- |
|
Un-allocable other operating income |
-- |
-- |
-- |
|
Total Profit Before Tax |
1161.270 |
856.139 |
2584.060 |
|
|
|
|
|
|
3. Capital Employed |
|
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
|
a. Textile |
16017.412 |
13163.777 |
16017.412 |
|
b. Plastics |
24132.697 |
23515.254 |
24132.697 |
|
c. Unallocated |
20158.511 |
21071.425 |
20158.511 |
|
Total |
60308.62 |
57750.456 |
60308.620 |
NOTES
1)
The Company is organized into two main business
segments, namely
Textile – Fabric and Yarn
Plastic – Water Tanks, Doors, Windows, Prefabs,
Sections, BT Shelter, Custom Mouldings etc.
Segments have been identified and reported
taking into account the nature of products and services, the differing risks
and returns, the organization structure and the internal financial reporting
systems.
2)
Segment revenue in each of the above business
segment primarily includes sales, services charges, rent, profit on sale of
fixed assets (net), Miscellaneous Sales and export incentives.
3)
Figures for the previous year/ quarter have been regrouped/
rearranged, wherever necessary.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
a) Amount of claims of certain retrenched employees for re-instatement
with back wages |
Amount not ascertained |
Amount not ascertained |
|
b) Corporate guarantees given to Banks/ Institutions |
165.600 |
304.800 |
|
c) Performance guarantees given to customers by bankers |
718.000 |
326.300 |
|
d) Letter of Credit Facilities provided by banks |
566.900 |
0.000 |
|
e) Disputed demand not acknowledged as debt against which the Company
has preferred appeal |
|
|
|
- Income tax |
136.400 |
129.700 |
|
- Sales Tax/VAT |
26.200 |
23.500 |
|
- Service Tax |
22.800 |
22.800 |
|
|
|
|
|
Total |
1635.900 |
807.100 |
FIXED ASSETS:
Tangible Assets
· Land
Buildings
Plant
and Machinery
Furniture,
Fixture and Office equipments
Vehicles
Intangible Assets
· Technical Know-how
Computer
Software
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. 59.03 |
|
|
1 |
Rs. 98.91 |
|
Euro |
1 |
Rs. 80.34 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
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.