MIRA INFORM REPORT
|
Report Date : |
11.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
NAHAR INDUSTRIAL ENTERPRISES LIMITED (w.e.f. 1994) |
|
|
|
|
Formerly Known
As : |
OSWAL FATS AND OILS LIMITED |
|
|
|
|
Registered
Office : |
Focal Point, Ludhiana – 141010, Punjab |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
27.09.1983 |
|
|
|
|
Com. Reg. No.: |
16-018321 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 400.342 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L15143PB1983PLC018321 |
|
|
|
|
IEC No.: |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JLDN00400B / JLDN0758C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACN7244C |
|
|
|
|
Legal Form : |
A Public Limited Liability
Company. The company’s Shares are Listed on the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Yarn, Fabrics and Sugar. |
|
|
|
|
No. of Employees
: |
Information declined by management. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 18300000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a part of “NAHAR GROUP”. It is a very old and well
established company. The company possesses on acceptable financial profile marked by decent
networth base along with slight working capital requirements partly due to
seasonal availability of major raw material cotton, as well as exposure to
risk of debt funded capex on setting up a greenfield grain based distillery
and timely completion of the same project. Management has witnessed an improvement in its operating income as
well as net profitability during financial year 2014. Moreover, it is found that the subject has defaulted hefty amounts
with 3 major banks i.e. ICICI Bank (Rs. 451.100 Millions), HDFC Bank (Rs.
84.500 Millions), Deutsche Bank (Rs. 494.600 Millions) for the reasons best
known to them, which has an important repurcation on the rating. However, trade relations seems to be fair. Business is active. Payment
terms are reported as slow and delayed. In view of vast experience of the promoters, the company can be
considered for business dealings on a safe and secured 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based limits A- |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
September 2014. |
|
Rating Agency Name |
ICRA |
|
Rating |
Non Fund based limits A2+ |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
September 2014. |
RBI DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a defaulter
in the publicly available RBI Defaulters’ list and the details of the same as
under:
Nahar Industrial
Enterprises to set up distillery in Punjab state
Nahar Industrial Enterprises Ltd has informed BSE that the Company has
planned to set up a Distillery with a capacity two lakh liters (200KL) / per
day at village Salana Jeon Singh Wala, District Fategarh Sahib in the State of
Punjab.
Name of Directors
Reported by Credit Grantors Filing the Suit:
|
Sr. No. |
Directors Reported by Credit Grantors |
|
DEUTSCHE BANK |
|
|
1. |
Dinesh Gogna |
|
2. |
Dinesh Oswal |
|
3. |
Kamal Oswal |
List of Credit
Grantors to which Nahar Industrial Enterprises Limited is a defaulter:
|
Name of Credit Grantors |
Branch |
Amount (Rs. In Lacs) |
|
DEUTSCHE BANK |
FORT BRANCH, MUMBAI |
494.600 |
|
|
|
|
Name of Directors
Reported by Credit Grantors Filing the Suit:
|
Sr.No. |
Directors
Reported by Credit Grantors |
|
HDFC BANK LIMITED |
|
|
1 |
AMRIK SINGH SOHI |
|
2 |
DINESH GOGNA |
|
3 |
DINESH OSWAL |
|
4 |
HARBHAJAN KAUR BAL |
|
5 |
JAWAHAR LAL OSWAL |
|
6 |
KAMAL OSWAL |
|
7 |
KANWAR SAIN MAINI |
|
8 |
NARAYAN DASS JAIN |
|
9 |
OM PRAKASH SAHNI |
|
10 |
YASH PAUL SACHDEVA |
List of Credit Grantors to which NAHAR
INDUSTRIAL ENTERPRISES LIMITED is a defaulter:
|
Names of Credit
Grantors |
Branch |
Amount |
|
HDFC BANK LIMITED |
LUDHIANA |
84.500 |
|
|
Total |
84.500 |
Suit-filed accounts (Willful Defaulters) of Rs. 25 Lacs and
above as on 11-Nov-2014
Borrowers details
|
Borrower name |
NAHAR INDUSTRIAL
ENTERPRISES LIMITED |
|
D&B D-U-N-S® Numbers |
|
|
Address |
FOCAL POINT, LUDHIANA, PUNJAB – 141 010 |
Name of Directors Reported by Credit
Grantors Filing the Suit:
|
Sr.No. |
Directors Reported by Credit Grantors |
|
ICICI BANK LIMITED |
|
|
1 |
AMARJEET SINGH |
|
2 |
Dinesh Gogna |
|
3 |
DINESH OSWAL |
|
4 |
H K BAL |
|
5 |
JAWAHAR LAL OSWAL |
|
6 |
K S MAINI |
|
7 |
KAMAL OSWAL |
|
8 |
N. D. JAIN |
|
9 |
O.P. SAHNI |
|
10 |
Y. P. SACHDEVA |
List of Credit Grantors to which NAHAR INDUSTRIAL
ENTERPRISES LIMITED is a defaulter:
|
Names of Credit Grantors |
Branch |
Amount |
|
ICICI BANK LIMITED |
LUDHIANA |
451.100 |
|
|
Total |
451.100 |
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
31-03-2014.
INFORMATION DENIED
Management Non Co-Operative (Tel. No.: 91-161-2672590)
LOCATIONS
|
Registered Office/ Corporate Office 1 : |
Focal Point, Ludhiana – 141010, Punjab, India |
|
Tel. No.: |
91-161-2672590/ 592/ 591 |
|
Fax No.: |
91-161-2670596/ 2674072 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
|
Nagar Tower Industrial Area – A, Ludhiana – 141003, Punjab, India |
|
Tel. No.: |
91-161-2600701 to 705 |
|
Fax No.: |
91-161-2600709 / 2601956 |
|
E-Mail : |
|
|
|
|
|
Corporate Office 3 : |
G.T. Road, Sherpur, Ludhiana – 141003, Punjab, India |
|
Tel. No.: |
91-161-2542501 to 07 |
|
Fax No.: |
91-161-2542509 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Arham Spinning
Mills Village Udaipur / Khijuriwas, Bhiwadi, District Alwar, Rajasthan,
India |
|
|
|
|
Factory 2 : |
Spinning Unit, Spinning Unit- II, Spinning Unit-III, Spinning Unit-IV Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali,
Punjab, India |
|
|
|
|
Factory 3 : |
Sambhav Spinning
Mills Industrial Focal Point, Phase VIII, Mundian Kalan, District Ludhiana,
Punjab, India |
|
|
|
|
Factory 4 : |
Fabrics Unit Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali,
Punjab, India |
|
|
|
|
Factory 5 : |
New Process and
Dyeing Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali,
Punjab, India |
|
|
|
|
Factory 6 : |
Nahar Sugar Village Salana Jeon Singh Wala, Tehsil
Amloh, District Fatehgarh Sahib, Punjab, India |
|
|
|
|
Factory 7 : |
Nahar Complex, P.O. Dappar, 21st Mile Stone,
Ambala-Chandigarh Road, Near Lalru, Mohali - 140506, Punjab, India |
|
Tel No.: |
91-1762-506503 / 506566 |
|
Fax No.: |
91-1762-506567 |
DIRECTORS
As On 31.03.2014
|
Name : |
Mr. Jawaharlal Oswal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Kamal Oswal |
|
Designation : |
Vice Chairman and Managing Director |
|
Qualification : |
B. Com |
|
Date of Appointment : |
01.02.1998 |
|
|
|
|
Name : |
Mr. Dinesh Oswal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dinesh Gonga |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N.D. Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. H.K. Bal |
|
Designation : |
Director |
|
|
|
|
Name : |
Prof. K.S. Maini |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Y.P. Sachdev |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. A.S. Sohi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A.S. Chatha |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Mukesh Sood |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. B. Bhushan Gupta |
|
Designation : |
Corporate Finance Contorller |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of
Shareholder |
No. of Shares |
% of holding Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
1324 |
0.00 |
|
|
27137877 |
68.13 |
|
|
27139201 |
68.13 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
27139201 |
68.13 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
18352 |
0.05 |
|
|
8635 |
0.02 |
|
|
169463 |
0.43 |
|
|
112 |
0.00 |
|
Any Others (Specify) |
311907 |
0.78 |
|
|
311907 |
0.78 |
|
|
508469 |
1.28 |
|
|
|
|
|
|
533191 |
1.34 |
|
|
|
|
|
|
6563774 |
16.48 |
|
|
5090506 |
12.78 |
|
|
12187471 |
30.59 |
|
Total Public
shareholding (B) |
12695940 |
31.87 |
|
Total (A)+(B) |
39835141 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
39835141 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Yarn, Fabrics and Sugar. |
|
|
|
|
Products : |
Not Available |
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
|
|
Products : |
Not Available |
|
Countries : |
Not Available |
|
|
|
|
Imports : |
|
|
Products : |
Not Available |
|
Countries : |
Not Available |
|
|
|
|
Terms : |
|
|
Selling : |
Not Available |
|
|
|
|
Purchasing : |
Not Available |
PRODUCTION STATUS
Not Available
GENERAL INFORMATION
|
Suppliers : |
Not Available |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Customers : |
Not Available |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
No. of Employees : |
Information declined by management. |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Raj Gupta and Company Chartered Accountant |
|
Address : |
549/10, |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Associates : |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
65,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 650.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
39,835,141 |
Equity Shares |
Rs. 10/-
each |
Rs. 398.351
Millions |
|
|
Add : Shares Forfeited Account (Amount originally paid up) |
|
Rs. 1.991
Millions |
|
|
Total |
|
Rs. 400.342 Millions |
Reconciliation of the
number of equity shares outstanding:
|
Particular |
As on 31.03.2013 |
|
At the beginning of the period |
39835141 |
|
Less : Shares Forfeited |
-- |
|
Outstanding at the end of period |
39835141 |
Terms/rights attached
to equity shares:
The company has only one class of Equity Shares having Face value of 10/- each. Each holder of equity share is entitled to only one vote per share.
Detail of
Shareholders holding more than 5%shares:
|
Shareholders |
Number |
% of holding |
|
Nahar Capital and Financial Services Limited |
9336745 |
23.44 |
|
J L Growth Fund Limited |
3421836 |
8.59 |
|
Nahar Poly Films Limited |
2708800 |
6.80 |
|
Vardhman Investments Limited |
2277955 |
5.72 |
|
Ashish Dhawan |
2590124 |
6.50 |
|
Nagdevi Trading and Investment Company Limited |
2150608 |
5.40 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
400.342 |
400.342 |
400.342 |
|
(b) Reserves & Surplus |
6009.118 |
5363.556 |
4991.405 |
|
(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) |
6409.460 |
5763.898 |
5391.747 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
4735.785 |
5516.430 |
5448.254 |
|
(b) Deferred tax liabilities (Net) |
325.326 |
189.126 |
62.776 |
|
(c) Other long term
liabilities |
86.697 |
160.445 |
245.990 |
|
(d) long-term
provisions |
24.690 |
34.864 |
9.942 |
|
Total Non-current
Liabilities (3) |
5172.498 |
5900.865 |
5766.962 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
4624.477 |
5089.751 |
4443.514 |
|
(b) Trade
payables |
566.110 |
722.490 |
771.388 |
|
(c) Other
current liabilities |
2063.637 |
1718.939 |
1360.985 |
|
(d) Short-term
provisions |
112.642 |
106.173 |
62.792 |
|
Total Current
Liabilities (4) |
7366.866 |
7637.353 |
6638.679 |
|
|
|
|
|
|
TOTAL |
18948.824 |
19302.116 |
17797.388 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
7345.376 |
7663.857 |
6554.717 |
|
(ii)
Intangible Assets |
6.435 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
342.774 |
124.305 |
1344.540 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1390.603 |
1390.598 |
1408.600 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
110.715 |
124.374 |
189.802 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
9195.903 |
9303.134 |
9497.659 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
6325.353 |
6756.201 |
5291.123 |
|
(c) Trade
receivables |
2105.145 |
1696.489 |
1557.912 |
|
(d) Cash
and cash equivalents |
24.822 |
21.925 |
29.257 |
|
(e)
Short-term loans and advances |
359.144 |
633.590 |
660.797 |
|
(f) Other
current assets |
938.457 |
881.777 |
760.640 |
|
Total
Current Assets |
9752.921 |
9989.982 |
8299.729 |
|
|
|
|
|
|
TOTAL |
18948.824 |
19293.116 |
17797.388 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
18495.141 |
17104.385 |
14078.234 |
|
|
|
Other Income |
64.638 |
79.002 |
69.855 |
|
|
|
TOTAL (A) |
18559.779 |
17183.387 |
14148.089 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
10267.873 |
8719.351 |
9165.716 |
|
|
|
Purchase of Stock-in-Trade |
43.894 |
171.239 |
360.176 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
Stock-in-Trade |
(856.784) |
(64.847) |
(348.878) |
|
|
|
Employees benefit expenses |
1413.051 |
1240.943 |
958.219 |
|
|
|
Other Expenses |
4379.187 |
4081.665 |
3286.315 |
|
|
|
TOTAL (B) |
15247.221 |
14148.351 |
13421.548 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (A-B) (C) |
3312.558 |
3035.036 |
726.541 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1058.728 |
1310.262 |
974.455 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2253.830 |
1724.774 |
(247.914) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1203.085 |
1104.826 |
807.445 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
1050.745 |
619.948 |
(1055.359) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
358.270 |
201.500 |
(247.803) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
692.475 |
418.448 |
(807.556) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
2396.107 |
2497.498 |
1233.310 |
|
|
|
Other |
0.000 |
9.028 |
30.713 |
|
|
TOTAL EARNINGS |
2396.107 |
2506.526 |
1264.023 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
27.378 |
64.451 |
|
|
|
Capital Goods and Stores |
357.198 |
268.616 |
867.897 |
|
|
TOTAL IMPORTS |
357.198 |
295.994 |
932.348 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.38 |
10.50 |
(19.99) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
3.74
|
2.44 |
(5.73) |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
12.18
|
19.22 |
5.15 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.10 |
3.48 |
(7.01) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.11 |
(0.20) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.46 |
1.84 |
1.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.32 |
1.31 |
1.25 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
400.342 |
400.342 |
400.342 |
|
Reserves & Surplus |
4991.405 |
5363.556 |
6009.118 |
|
Net
worth |
5391.747 |
5763.898 |
6409.460 |
|
|
|
|
|
|
long-term borrowings |
5448.254 |
5516.430 |
4735.785 |
|
Short term borrowings |
4443.514 |
5089.751 |
4624.477 |
|
Total
borrowings |
9891.768 |
10606.181 |
9360.262 |
|
Debt/Equity
ratio |
1.835 |
1.840 |
1.460 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
14078.234 |
17104.385 |
18495.141 |
|
|
|
21.495 |
8.131 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
14078.234 |
17104.385 |
18495.141 |
|
Profit |
-807.556 |
418.448 |
692.475 |
|
|
-5.74% |
2.45% |
3.74% |
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 |
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 |
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 |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION
DETAILS:
HIGH
COURT OF PUNJAB AND HARYANA
CHANDGARH
|
Case Details for CRM-M-18430-2014 |
|||
|
Diary Number |
1192971 |
District |
Ludhiana |
|
Category |
38.1-QUASHING PETITIONS I/O |
Main Case Detail |
-- |
|
Party Detail |
M/S DESIRE CLOTHING AND V/S NAHAR INDUSTRIAL ENTERPRISES LIMITED |
||
|
Advocate Name |
ATUL GOYAL |
List Type |
ORDINARY |
|
Status |
PENDING |
Next Date |
21.11.2014 |
|
|
|
|
|
|
Case Listing Details |
|||
|
Cause List Date |
List Type Sr. No. |
Bench |
Order Link |
|
23.11.2014 |
ORDINARY : 257 |
HON’BLE MRS. JUSTICE ANTIA CHAUDHARY |
View Interim Order |
|
12.08.2014 |
ORDINARY :252 |
HON’BLE MRS. JUSTICE ANTIA CHAUDHARY |
View Interim Order |
|
01.07.2014 |
ORDINARY : 246 |
HON’BLE MRS. JUSTICE ANTIA CHAUDHARY |
View Interim Order |
|
29.05.2014 |
: 132 |
HON’BLE MRS. JUSTICE ANTIA CHAUDHARY |
View Interim Order |
|
|
|
|
|
|
Complaint Details |
|||
|
Complaint No and Date |
Complaint |
Police Station |
District |
|
568/16-MAR-10 |
|
138 NI ACT |
LUDHIANA |
|
|
|
|
|
|
Details of Copy Petition Applied in
CRM-M18430/2014 |
|||
|
Petition Type/ No |
Petition Date |
Applied By |
Petition Status |
|
:424133 |
14.08.2014 |
Advocate / Clerk GURBEAX /ATUL GOYAL |
Delivered |
|
|
|
|
|
|
Judgment Details For Case : CRM-M-18430-2014 Party Details : M/S DESIRE CLOTHING AND ANR V/S
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
|||
|
Order Date |
Order Type |
Bench |
Judgment Link |
|
23.09.2014 |
Interim Order |
HON’BLE MRS. JUSTICE ANITA CHAUDHARY |
View Order |
|
12.08.2014 |
Interim Order |
HON’BLE MRS. JUSTICE ANITA CHAUDHARY |
View Order |
|
01.07.2014 |
Interim Order |
HON’BLE MRS. JUSTICE ANITA CHAUDHARY |
View Order |
|
29.05.2014 |
Interim Order |
HON’BLE MRS. JUSTICE ANITA CHAUDHARY |
View Order |
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Deferred Payment Liabilities |
0.000 |
9.180 |
|
Loans and Advances from related parties |
421.401 |
381.426 |
|
Total |
421.401 |
390.606 |
PERFORMANCE REVIEW
The company operates in three main business segments viz.
Yarn, Fabrics and Sugar. The textile division
(comprises of yarn and fabrics) accounts for 95.43% of the total
turnover (including inter-segment) of the company for the year ended 31 March, 2014. Sugar and
others also accounts for 4.57% of the total turnover of the company for the
year ended 31 March, 2014.
The business wise
performance of each segment is as under:-
Yarn: The Company has produced 70,595 MTs of
yarn as against 67,960 MTs in the previous year. The total
turnover of this segment (including inter-segment) has increased to Rs. 1,5895.600millions as against Rs. 14280.600 millions in the previous year showing an increase of 11.31%.
Fabrics: The Company has produced 72,877,934 meters of fabrics (both grey and processed) as against 74,431,448 meters in the previous year. The total turnover of this segment (including inter-segment) has increased to Rs. 10602.500millions as against Rs.9460.300millions in the previous year showing an increase of 12.07%.
Sugar: The Company has produced 412,720 Qtls. of sugar as against 402,040 Qtls. in the previous year. The total turnover of this segment is Rs. 1260.100millions as against Rs. 1698.500 millions in the previous year showing a decrease of 25.81%.
During the year the company has achieved operational income of Rs. 18545.700millions as against Rs. 17163.100millions showing an increase of 8.06% over the previous year. The company has earned Profit before finance cost, Depreciation and tax of Rs. 3312.600millions as against Rs. 3035.000 millions in the previous year. After providing for Finance Cost of Rs. 1058.700millions (previous year Rs. 1310.300 millions), Depreciation of Rs. 1203.100millions (previous year Rs. 1104.800 millions) and Tax Expenses of Rs. 358.300millions (previous year Rs. 201.500 millions) the Profit for the year comes to Rs. 692.500millions as against Rs. 418.400millions in the previous year. Indian textile industry has performed extremely well during the year under review. With growing demand, recovery in export markets, better realizations, stable cotton prices and better planning, your company has achieved satisfactory performance. The overall textile market is depressed since April, 2014 and there is sluggish demand for textile products. The management is hopeful that the company shall be able to meet the challenges ahead and further improve its performance in the coming periods.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY
STRUCTURE/DEVELOPMENT (TEXTILE)
The Indian textile and apparel industry is one of the leading industries of the Indian economy. The growth and all round development of this industry has a direct bearing on the improvement of Indian economy. The textile and apparel industry plays an important role through its contribution to industrial output, employment generation and the export earnings of the country. Post Multi Fiber Agreement on January 1, 2005, the textile and apparel industry has witnessed a clear distinction between countries as production and consumption hubs. Developed countries like the USA, countries of the European Union and Japan have emerged as consuming countries while developing countries like India, China and Bangladesh are producing countries. For the development and to boost the textile and apparel industry, the Indian Government has been supporting the textile industry through various policies incentives from time to time. In the Union Budget 2014-15, the Central Government has allocated Rs. 23000.000 millions for TUFs and Rs. 2400.000 millions towards integrated textile parks which will help the textile industry to grow at a faster pace. Overall, textile and apparel industry contributes 4% to India GDP.
In FY 2013-14 there was a weak recovery in the economy of the USA and European Union. The emerging economies like China and India has also witnessed a general economic slowdown. As per the data made available by the Central Statistical Organization (CSO), India's GDP growth in 2013-14 is 4.7%. The manufacturing indices had declined, commodity prices stayed at high levels. The high borrowing cost to combat inflation, low investment in infrastructure and other sectors were responsible for this lower growth. However, the slow GDP growth appears to have bottomed out and post general elections, economic activity is expected to pick up. According to the Technopak Report, 2014 the expected slower annual GDP growth in the advanced economies is directly impacting the consumption of textile and apparel products, hence reducing its demand. On the other hand, the expected higher GDP growth of the developing countries has led to an increase in purchasing power of consumers, favoring the growth in textile and apparel consumption in these countries.
Indian textile industry has performed extremely well during the year. The strong performance across different segments of the industry is evident from the strong domestic production as well as exports. It is expected that same trend will continue as Chinese exports are slowing down on account of various factors which include increase in domestic demand and rising input costs. China is losing its strength as low cost manufacturing country, which will help India to become a textile power house. As a measure of growing interest in the Indian textiles and apparel industry, number of reputed houses has opened their sourcing / liaison office in India. According to Technopak Report, 2014, India's textile and apparel industry is expected to grow at a CAGR of 9% from the market size of US $ 95 billion in 2013 to reach a market size of US $ 226 billion by the end of 2023. This is an indicator for the growth of Indian textile and apparel industry to increase its share in the global market.
INDUSTRY
STRUCTURE/DEVELOPMENT (SUGAR)
The Indian sugar industry is characterized by the coexistence of private, cooperative and public sector, supporting over 50 million farmers and their families. It is second largest agro-based industry after textiles. The growth of sugar industry has powerful impact on the rural economy. Recently, the Government of India has implemented the recommendations of Dr C. Rangarajan Committee to reform the sugar sector. It took the positive step of abolition of the levy sugar obligation of the sugar mills. This would help in removing the substantial burden of levy subsidy from the mills. Simultaneously the Central Government has done away with the free sale sugar release mechanism, thereby freeing mills to sell sugar without any limitation of periodic quotas as in the past.
Outlook
The US market and EU region account for the bulk of textile exports from India. Economic recession in these markets since 2008 have impacted the textile exports from India. To reduce the dependence on these markets the government has incorporated several measures in the Focus Market Scheme. Continued government schemes in the form of policies like Focus Market Scheme would encourage exporters to explore markets outside the traditional destinations of the US and EU. Though the textile industry is depressed since April 2014 but it is hoped that it would improve in the coming periods. According to Technopak Report, 2014 the export market of textile and apparel would grow from US $ 36 billion in the year 2013 to US $ 85 billion by the end of 2023. It is expected that domestic market would also grow from US $ 59 billion in 2013 to US $ 141 billion by the end of 2023. India's growing population has been a key driver of textile consumption growth in the country. Changing lifestyle, rising income and growing spending capacities, increasing urbanization, rising middle class and increasing demand for quality products are also set to increase the demand for apparel. With the expected revival in the global economy and hope for the improving business environment in the country, the outlook for the Indian textile industry is expected to be bright. Supportive policy regime and the absolute commitment of private enterprise would add strength to Indian textile industry.
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH JUNE 2014
(Rs. In Millions)
|
SI. No. |
Particulars |
Quarter Ended 30.06.2014 |
|
|
|
(Unaudited) |
|
1 |
Income From
Operations |
|
|
|
a) Net Sales/Income from Operations (Net of Excise Duty) |
4855.720 |
|
|
b) Other Operating Income |
45.765 |
|
|
Total Income from
operations(net) (a+b) |
4901.485 |
|
2 |
Expenses |
|
|
|
a) Cost of Materials Consumed |
2448.631 |
|
|
b) Purchases of stock-in-trade |
0.768 |
|
|
c) Changes in Inventories of Finished Goods, works-in-progress and stock-in-trade |
434.178 |
|
|
d) Employee Benefits Expense |
366.996 |
|
|
e) Depreciation and Amortization Expense |
358.102 |
|
|
f) Power & Fuel |
598.046 |
|
|
g) Other Expenses |
503.035 |
|
|
Total Expenses (a
to g) |
4709.757 |
|
3 |
Profit from Operations before Other Income, Finance Costs and Exceptional Items |
191.728 |
|
4 |
Other Income |
22.699 |
|
5 |
Profit from Ordinary Activities before Finance Costs and Exceptional Items |
214.427 |
|
6 |
Finance Costs |
278.571 |
|
7 |
Profit from Ordinary Activities after Finance Costs but before Exceptional Items |
(64.144) |
|
8 |
Exceptional items |
-- |
|
9 |
Profit from Ordinary Activities before Tax |
(64.144) |
|
10 |
Tax Expense |
(10.110) |
|
11 |
Net Profit from Ordinary Activities after tax |
(54.034) |
|
12 |
Extraordinary Items (Net of Tax Expense) |
-- |
|
13 |
Net Profit for the Period |
(54.034) |
|
14 |
Paid-up Equity Share Capital (Face Value - Rs. 10/- per share) |
398.351 |
|
15 |
Reserves excluding Revaluation Reserves as per Balance Sheet of previous accounting year |
-- |
|
16 |
Earnings Per Share before and after Extraordinary Items (In Rs.) (not annualised) |
|
|
|
(a) Basic |
(1.36) |
|
|
(b) Diluted |
(1.36) |
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
Public
shareholdings |
|
|
|
- Number of Shares |
12898257 |
|
|
- Percentage of Shareholding |
32.38 |
|
2 |
Promoters &
Promoter Group Shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
-- |
|
|
- Percentage of Shares (as a % of the total Shareholding of promoter and promoter Group) |
-- |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
-- |
|
|
b) Non-encumbered |
|
|
|
- Number of Shares |
26936884 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter and Promoter Group) |
100.00 |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
67.62 |
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
-- |
|
|
Received during the quarter |
22 |
|
|
Disposed of during the quarter |
22 |
|
|
Remaining unresolved at the end of the quarter |
-- |
SEGMENTWISE REVENUE, RESULTS
AND CAPITAL EMPLOYED
(Rs. In
Millions)
|
Particulars |
Quarter Ended |
|
|
30.06.2014 |
|
|
(Unaudited) |
|
Segment Revenue |
|
|
a)Textile |
4493.107 |
|
b) Sugar |
362.087 |
|
c) Others |
0.526 |
|
Total |
4855.720 |
|
Less: Inter Segment Revenue |
-- |
|
Net Sales/Income
from Operations |
4855.720 |
|
|
|
|
Segment Results |
|
|
Profit/(Loss) before Tax .Exceptional items and Interest |
|
|
from each segment |
|
|
a)Textile |
232.490 |
|
b) Sugar |
(3.714) |
|
c) Others |
(14.349) |
|
Total |
214.427 |
|
Less: i) Interest |
278.571 |
|
Total Profit /
(Loss) before Tax |
(64.144) |
|
|
|
|
Capital Employed |
|
|
(Segment assets - Segment Liabilities) |
|
|
a)Textile |
9990.499 |
|
b) Sugar |
624.842 |
|
c) Other (unallocable) |
1759.331 |
|
Total |
12374.672 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10511273 |
26/07/2014 * |
825,000,000.00 |
State Bank of India |
Industrial Finance
Branch, Golden Tower,, Dholewa |
C16504425 |
|
2 |
10486529 |
26/07/2014 * |
99,678,000.00 |
IDBI Bank Limited |
S.C.O. 126-128, Ist
Floor,, Kalinga Tower, Feroze |
C14449425 |
|
3 |
10408509 |
06/06/2014 * |
250,000,000.00 |
IDBI Bank Limited |
S.C.O. 126-128, Kalinga
Tower,, Feroze Gandhi Ma |
C06059679 |
|
4 |
10403559 |
06/06/2014 * |
400,000,000.00 |
State Bank of India |
IFB, Golden Tower,,
Dholewal Chowk,, Ludhiana, Pu |
C07106065 |
|
5 |
10384996 |
06/06/2014 * |
870,000,000.00 |
State Bank of Patiala |
Commercial Branch,
Aarti Complex,, G.T. Road,, Lu |
C06182745 |
|
6 |
10347326 |
06/06/2014 * |
300,000,000.00 |
State Bank of Patiala |
Commercial Branch, Aarti
Complex,, Miller Ganj,, |
C06181556 |
|
7 |
10333237 |
06/06/2014 * |
325,000,000.00 |
State Bank of Patiala |
Commercial Branch,
Aarti Complex,, Miller Ganj,, |
C06217426 |
|
8 |
10326751 |
13/12/2011 |
400,000,000.00 |
Canara Bank |
Bharat Nagar Chowk
Branch, Ludhiana, Punjab - 1410 |
B29185543 |
|
9 |
10294403 |
06/06/2014 * |
1,330,000,000.00 |
Allahabad Bank |
IIFB, 165,
Industrial Area-A, Cheema Chowk, Ludhi |
C06985907 |
|
10 |
10271563 |
06/06/2014 * |
500,000,000.00 |
Indian Overseas Bank |
Kacheri Road
Branch,, Ludhiana, Punjab - 141001, I |
C06992655 |
* Date of charge modification
FIXED ASSETS
- Leasehold
Land
- Freehold Land
- Building
- Plant and
Machinery
- Furniture and
Fixture
- Office
Equipment
- Vehicles
- 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 records 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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.45 |
|
|
1 |
Rs. 97.76 |
|
Euro |
1 |
Rs. 76.68 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
JYO |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
YES |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
YES |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
36 |
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.