MIRA INFORM REPORT
|
Report Date : |
08.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
RICO AUTO INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
69 K.M. Stone, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
07.03.1983 |
|
|
|
|
Com. Reg. No.: |
05-023187 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 135.300 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L34300HR1983PLC023187 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RTKR01725D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Seller of auto components for two
wheelers and four wheelers. |
|
|
|
|
No. of Employees
: |
4728 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (15) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is established company having a moderate track record. The rating takes into consideration delay in debt servicing due to
timely refinance its repayments and inadequate internal accruals led to a
stretched liquidity position. However, business is active. Payment terms are reported to be slow and
delayed. The company can be considered for business dealings on 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 illfully 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 |
Term Loans = D |
|
Rating Explanation |
Expected to be in default |
|
Date |
September 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based and Non fund based facilities = D |
|
Rating Explanation |
Expected to be in default |
|
Date |
September 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
31-03-2014.
INFORMATION DECLINED
Management non-Corporative (91-124-2824000 / 2824224)
LOCATIONS
|
Registered
Office/ Dharuhera
plant : |
69 K.M. Stone, |
|
Tel. No.: |
91-1274-242411/
242417/ 267314 to 319 |
|
Fax No.: |
91-1274-242418 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head/
Corporate Office/ Gurgaon Plant
: |
38 K.M. Stone, |
|
Tel. No.: |
91-124-6372911/
6373212/ 2824000/ 2824221/ 2824000 |
|
Fax No.: |
91-124-6372913/
3359/ 2824200 |
|
E-Mail : |
|
|
|
|
|
Agroils division: |
|
|
|
|
|
Haridwar Plant : |
Plot No.1, Industrial Park IV, Village Begumpur, Distt. Haridwar, Uttarakhand, India |
|
|
|
|
Sanand Plant : |
Plot No.D2, Tata Motors Vendor Park, Village Sanand, P.O. Viroch Nagar, Ahmedabad – 382170, Gujarat, India |
|
|
|
|
Bawal Plant : |
Plot No.23, Sector-5, Industrial Estate, Phase-II, G.C. Bawal, Haryana India |
|
|
|
|
Overseas Office: |
6338 The Royals Plantaganet House, Unit 1, Lewis House, Tel No.: +44 (0) 203 1743 007 Fax No.: +44 (0) 208 963 9960 |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Arvind Kapur |
|
Designation : |
Chairman , CEO and Managing Director |
|
Qualification : |
B. Sc President, Management Program from |
|
Date of Appointment : |
16.12.1984 |
|
|
|
|
Name : |
Mr. Kanwal Monga |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amarjit Chopra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dr. Ashok Seth |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Satish Sekhri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rakesh Kapur |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajeev Kapoor |
|
Designation : |
Director (w,e,f, 13.11.2013) |
|
|
|
|
Name : |
Mr. Vinod Kumar Nagar |
|
Designation : |
Director (w.e.f. 13.11.2013) |
|
|
|
|
Name : |
Mr. Arun Kapur |
|
Designation : |
Joint Managing Director |
|
Qualification : |
B.A. |
|
Date of Appointment : |
01.05.1985 |
KEY EXECUTIVES
|
Name : |
Mr. B.M. Jhamb |
|
Designation : |
Company Secretary |
|
Address : |
Rico Auto
Industries Limited, 38KM, Stone, |
|
Tel. No.: |
91-124-2824221/
2824000 |
|
Fax No.: |
91-124-2824200 |
|
E-Mail : |
|
|
|
|
|
Senior
Executives |
Mr. O P Aggarwal Mr. R S Kundi Mr. N K Sethi Mr. G S Bisht Mr. Surendra Singh Mr. Anuj Singhal Mr. Rajiv Miglani Mr. M K Jain Mr. Surendra Singh Mr. Manjit Singh Mr. R.K. Miglani Mr. R Dharna |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
27501188 |
20.33 |
|
|
40199790 |
29.71 |
|
|
67700978 |
50.04 |
|
|
|
|
|
|
79000 |
0.06 |
|
|
79000 |
0.06 |
|
Total shareholding of Promoter
and Promoter Group (A) |
67779978 |
50.10 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2500 |
0.00 |
|
|
1100000 |
0.81 |
|
|
1102500 |
0.81 |
|
|
|
|
|
|
8734658 |
6.46 |
|
|
|
|
|
|
34558343 |
25.54 |
|
|
19820454 |
14.65 |
|
|
3289067 |
2.43 |
|
|
2000 |
0.00 |
|
|
3287067 |
2.43 |
|
|
66402522 |
49.08 |
|
Total Public shareholding (B) |
67505022 |
49.90 |
|
Total (A)+(B) |
135285000 |
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) |
135285000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of auto components for two
wheelers and four wheelers. |
GENERAL INFORMATION
|
No. of Employees : |
4728 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Walker, Chandiok and Company Chartered Accountants |
|
Address : |
New Delhi, India |
|
|
|
|
Subsidiary : |
|
|
|
|
|
Joint Venture : |
|
|
|
|
|
Entity in which KMP
exercise significant influence : |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25,00,00,000 |
Equity Shares |
Rs.1/- each |
Rs.250.000 Millions |
|
50,00,000 |
Redeemable Preference Shares |
Rs.10/- each |
Rs.50.000 Millions |
|
|
Total |
|
Rs.300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13,52,85,000 |
Equity Shares |
Rs.1/- each |
Rs.135.300 Millions |
|
|
|
|
|
RECONCILIATION OF
NUMBER OF EQUITY SHARES OUTSTANDING
|
|
No. of Shares |
Rs. In Millions |
|
At the beginning of the year |
135285000 |
135.300 |
|
Movement during the year |
-- |
-- |
|
Outstanding at the end of the year |
135285000 |
135.300 |
DETAILS OF
SHAREHOLDERS HOLDING MORE THAN 5% EQUITY SHARES IN THE COMPANY
|
|
% of Holding |
Number of Shares |
|
Kapsons Associates Investments Private Limited |
28.77 |
38917050 |
|
Arvind Kapur |
9.35 |
12652460 |
|
Arun Kapur |
6.39 |
8651160 |
|
Ashish Dhawan |
5.38 |
7273092 |
The Company has not issued bonus shares, equity shares for consideration other than cash and also no shares have been bought back during the eriod of five years immediately preceeding the reporting period.
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 |
135.300 |
135.300 |
135.300 |
|
(b) Reserves & Surplus |
3086.900 |
3076.400 |
2998.500 |
|
(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) |
3222.200 |
3211.700 |
3133.800 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
610.700 |
1166.900 |
1718.800 |
|
(b) Deferred tax liabilities (Net) |
353.900 |
364.600 |
421.800 |
|
(c) Other long term
liabilities |
12.000 |
21.000 |
15.000 |
|
(d) long-term
provisions |
97.200 |
78.500 |
42.700 |
|
Total Non-current
Liabilities (3) |
1073.800 |
1631.000 |
2198.300 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
1472.700 |
2120.900 |
1754.100 |
|
(b) Trade
payables |
1960.500 |
1612.300 |
1490.400 |
|
(c) Other
current liabilities |
1675.900 |
1546.500 |
1213.600 |
|
(d) Short-term
provisions |
43.400 |
48.300 |
45.600 |
|
Total Current
Liabilities (4) |
5152.500 |
5328.000 |
4503.700 |
|
|
|
|
|
|
TOTAL |
9448.500 |
10170.700 |
9835.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
5167.800 |
5254.600 |
4500.600 |
|
(ii)
Intangible Assets |
12.700 |
15.700 |
12.300 |
|
(iii)
Capital work-in-progress |
215.800 |
358.700 |
677.300 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
764.000 |
749.000 |
312.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
784.900 |
793.300 |
1002.100 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
6945.200 |
7171.300 |
6504.300 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
586.800 |
786.300 |
958.800 |
|
(c) Trade
receivables |
1010.500 |
1345.800 |
1689.900 |
|
(d) Cash
and cash equivalents |
9.200 |
60.200 |
26.100 |
|
(e)
Short-term loans and advances |
806.200 |
740.300 |
595.500 |
|
(f) Other
current assets |
90.600 |
66.800 |
61.200 |
|
Total
Current Assets |
2503.300 |
2999.400 |
3331.500 |
|
|
|
|
|
|
TOTAL |
9448.500 |
10170.700 |
9835.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9303.900 |
10470.400 |
11020.300 |
|
|
|
Other Income |
326.500 |
429.600 |
348.100 |
|
|
|
TOTAL (A) |
9630.400 |
10900.000 |
11368.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
4976.200 |
6363.400 |
6628.900 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
129.900 |
52.800 |
15.400 |
|
|
|
Employees benefits expense |
1138.200 |
1116.600 |
1080.000 |
|
|
|
Other expenses |
2038.600 |
1997.900 |
2290.200 |
|
|
|
Prior Period Items (Net) |
(0.400) |
(3.000) |
2.000 |
|
|
|
Exceptional Items |
0.000 |
0.000 |
112.400 |
|
|
|
TOTAL (B) |
8282.500 |
9527.700 |
10128.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1347.900 |
1372.300 |
1239.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
593.600 |
630.800 |
678.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
754.300 |
741.500 |
560.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
713.300 |
649.400 |
563.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
41.000 |
92.100 |
-2.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
14.700 |
-9.500 |
36.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
26.300 |
101.600 |
-39.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
808.600 |
735.800 |
798.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
5.100 |
0.000 |
|
|
|
Proposed Dividend on Equity
Shares @15% |
0.000 |
20.300 |
0.000 |
|
|
|
Dividend on Equity Shares @15% |
13.500 |
0.000 |
20.300 |
|
|
|
Corporate Dividend Tax |
2.300 |
3.400 |
3.200 |
|
|
BALANCE CARRIED
TO THE B/S |
819.100 |
808.600 |
735.800 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
1881.000 |
1700.000 |
1837.100 |
|
|
TOTAL EARNINGS |
1881.000 |
1700.000 |
1837.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3.400 |
8.200 |
12.400 |
|
|
|
Components |
20.400 |
18.700 |
41.900 |
|
|
|
Stores parts |
22.900 |
35.200 |
52.200 |
|
|
|
Capital Goods |
3.000 |
171.900 |
64.900 |
|
|
TOTAL IMPORTS |
49.700 |
234.000 |
171.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.19 |
0.75 |
-0.29 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
0.28 |
0.97 |
-0.36 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
14.49 |
13.11 |
11.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.48 |
1.02 |
-0.03 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01 |
0.03 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.65 |
1.02 |
1.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.49 |
0.56 |
0.74 |
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 |
135.300 |
135.300 |
135.300 |
|
Reserves & Surplus |
2998.500 |
3076.400 |
3086.900 |
|
Net worth |
3133.800 |
3211.700 |
3222.200 |
|
|
|
|
|
|
long-term borrowings |
1718.800 |
1166.900 |
610.700 |
|
Short term borrowings |
1754.100 |
2120.900 |
1472.700 |
|
Total borrowings |
3472.900 |
3287.800 |
2083.400 |
|
Debt/Equity ratio |
1.108 |
1.024 |
0.647 |
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 |
11020.300 |
10470.400 |
9303.900 |
|
|
|
(4.990) |
(11.141) |
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 |
11020.300 |
10470.400 |
9303.900 |
|
Profit |
(39.400) |
101.600 |
26.300 |
|
|
(0.36%) |
0.97% |
0.28% |
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 |
---------------------- |
|
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 |
No |
|
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 |
UNSECURED LOAN
Rs. In Millions
|
Particular |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
LONG TERM
BORROWINGS |
|
|
|
From Financial
Institutions: |
|
|
|
Rupee Loans |
113.300 |
49.900 |
|
Less: Current maturities of long term unsecured borrowings |
(24.600) |
(11.700) |
|
Total |
88.700 |
38.200 |
CORPORATE INFORMATION
Subject was incorporated in India on 7 March, 1983. Rico supplies a broad range of high-precision fully machined aluminum and ferrous components and assemblies to Original Equipment Manufacturers across the globe. Its integrated services include design, development, tooling, casting, machining, assembly and research and development across aluminium and ferrous products. The Company is in the business of manufacturing and sale of auto components for two wheelers and four wheelers.
FINANCIAL RESULTS
The Company has recorded a turnover of Rs.10416.200 Millions in the year as against Rs.11858.700 Millions in the previous year. The Company has earned a Profit after Tax (PAT) of Rs.26.300 Millions during the year over the previous year’s profit of Rs.101.600 Millions.
OUTLOOK FOR CURRENT
YEAR
The Unaudited Financial Results for the first quarter ended 30th June, 2014, already announced, show a turnover of Rs.229.97 crores for the first quarter of the current year against a turnover of Rs.2931.900 Millions in the corresponding quarter of the previous year. The Directors are taking steps to improve the turnover and margin during the remaining part of the year.
EXPORT
The export turnover of the Company during the period was Rs.1932.000 Millions as against Rs.1819.900 Millions in the previous year. The export turnover includes sales to wholly owned subsidiaries amounting to Rs.1243.300 Millions as against Rs.1165.600 Millions in the previous year. Their wholly owned subsidiaries in United Kingdom and United States of America are engaged in providing last mile sales and customer support in the regions.
During the quarter ended 30th June, 2014 of current year, export turnover was Rs.454.200 Millions as against Rs.527.700 Millions in the corresponding quarter of the previous year. Further details as regards efforts of the Company on this front have been dealt with in the Management Discussion and Analysis section of this report.
NEW PLANTS AND
FACILITIES
The Company continues its efforts towards expansion of its domestic and overseas customer base by first utilizing the existing available capacities and also implementing new facilities to enhance capacity by acquiring new technologies and also de-risking its operations geographically. The Company is working for setting-up its:
A. Bawal Plant
This plant has been set up for High Tonnage High Pressure Die Casting work with full automation and controls and high precision machining for Auto parts and assembly. Production was commenced in March, 2013 and they are now gearing up for higher volumes for their esteemed customers Eaton, Renault and Tata Motors.
B. Chennai Plant
The Company has been awarded orders for manufacturing of automotive parts from Renault-Nissan in Chennai. Manufacturing equipments are under installation and commissioning. Commercial Production is planned to start in the last quarter of this financial year.
C. Pathredi (Bhiwadi)
Plant
Site development work has been completed. The building construction is deferred and is now expected to commence in the financial year 2015-16.
D. Sanand Plant
At present, in view of low demand by Tata Motors Limited for the components for the Nano Car, supply is being made from the Company’s Gurgaon Plant. Efforts are being made to add more customers so the Plant capacity can be utilized. Re-starting of the Sanand Plant by last quarter of this financial year is under discussion with Tata Motors in lieu of application of parts for their running Ace Pick up model.
Further discussions are in progress with M/s. Hero Motocorp and Maruti Suzuki for supplies to their up-coming plants in Gujarat and other states.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
According to a joint study by ACMA and Ernst and Young, the Indian Auto Component Industry would grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent through 2011-21. Not only meeting domestic demand, India is poised to scale new heights in terms of exports as well. The said report estimates that exports would grow at a CAGR of 18.8 per cent through the forecast period.
The year 2013-14 however, was one of the most challenging ones for the automobile industry with auto components witnessing a decline. During the fiscal year ending March, 2014, domestic automobile sales have recorded a cumulative sales growth of 3.4 per cent at 18.42 million units as against previous year figures of 17.81 million units, passenger cars and multi utility vehicle segment had a negative growth rate of 4.4 per cent at
3.09 million units compared to 3.24 million units in the previous year. The commercial vehicle segment registered a massive de-growth of 18.7 per cent at 0.71 million units against 0.87 million units last year. The two wheeler segment was the only silver lining, which registered a growth of 7.2 per cent with aggregated unit sales of 16.88 million units as compared to 15.75 million units in the previous year. Export has clocked a growth of 7.2 per cent at 3.11 million units as against previous year figures of 2.90 million units.
The Indian Auto Component Industry turnover stood close to US$ 35.1 Billion for the year 2013-14 over the previous year turnover of US$ 39.7 Billion, a dip of 11 per cent in Dollar terms. However, in Rupee terms this has reduced by 2 per cent. Exports of Auto Components from India during the financial year 2013-14 increased to US$ 10.2 Billion from US$ 9.7 Billion compared to previous year 2012-13 recording a modest growth of 5 per cent.
OPPORTUNITIES,
THREATS AND OUTLOOK
India’s Auto Component Industry today has the capability to manufacture the entire range of auto components at competitive costs. India is, therefore, fast emerging as an auto components hub and is expected to play a significant role in the global automotive supply chains in the coming years. Almost all Global auto makers have set up plants in India to cater to the domestic as well as export markets.
The Company, with a view to explore opportunities with existing and new customers, has, (a) developed dedicated account teams to focus on each specific customer; (b) kept pace with the latest technological developments; (c) adopted quality standards in line with the global standards to meet its commitments; and (d) adopted best practices for global distribution of its products.
The Company is well poised to benefit from opportunities available to the auto component industry on account of its reputation of being a reliable source of complex components and assemblies, multiple fully integrated production facilities, equipped to offer the complete spectrum of services from designing of components to development of tools, casting and precision machining and assembly of auto components.
Although there was a decline in the domestic sales in line with the industry trends, yet the Company’s exports showed a marginal growth. Combating the global slowdown as well uncertain economic climate, The Company was able to post a decent 6.2 per cent growth in exports.
Exports always have been a focus area for the Company and it is continuously engaging its global customer base to bag new programs and launch them as per the customer requirements. In 2013-14, significant new business was added from GKN, BMW, Jatco and Renault. The Company has aligned its strategy to build infrastructure and capability for more complex and higher tonnage parts; thus giving more value to the customers and increasing its segment competitiveness.
The exports market in US and Europe is stabilizing and expected to grow by around 3-4 per cent in 2014-15. The Company is working towards leveraging this uptrend and will be launching programs in the last quarter of the current financial year which will continue to strengthen its position.
ECONOMIC OUTLOOK
As discussed in their previous report, the business outlook for 2013-14 was restrained and challenged by the impact of slowdown in the election year with the manufacturing sector getting less than its fair share of Govt. attention. The GDP growth for 2013-14 is estimated to be around 4.7 per cent as compared to 4.5 per cent in the last year, which was one of the lowest in the last decade. In seven of the last eight quarters, India’s GDP has grown at less than 5 per cent – held back by a combination of high inflation, high interest rates and poor industrial sector growth.
The estimates for current year peg the economy to grow at a healthier 5.5 per cent but with a down side risk due to deficient monsoon and external geopolitical situation in the Middle East which can directly impact the oil prices. Global oil prices remained at levels well over US$100 per barrel for the first quarter of the current fiscal and are expected to firm up towards the end of the year which will definitely put severe pressure on operating margins. Higher energy cost and high interest rates due to high inflation could also be containing factors for growth of the industry.
Positive sentiment borne out of a marginal decline in inflation in the first quarter of the current fiscal and some promised growth oriented policy decisions promise to ease out liquidity and in turn lead the way for lowering of interest rates in the subsequent quarters. Starting with a weaker rupee in the first quarter compared to the dollar, would partially improve the competitive position for the Company in the export market.
BUSINESS OUTLOOK
The last fiscal has been one of the most challenging for the automotive industry in India; sluggish vehicle sales, high capital costs, high interest rates, currency fluctuations and slowing down of investment in manufacturing have adversely impacted the growth of auto component industry. Political uncertainty had added negative impact on the growth. Trying to recover from the impact of macro economic variables, the automotive industry, the primary sector serviced by the Company, witnessed a meager 3.4 per cent growth in domestic sales with the passenger vehicles and commercial vehicles showing de-growth while the two wheelers witnessing growth during the same period. The key factors for the dismal industry performance were the increasing fuel prices, weakening rupee, prolonged high interest rate regime – leading to rising vehicle financing cost apart from slow down in demand.
Post-election, the new stable Government at the center and a pro- business environment in the country is likely to provide a boost to the Automotive Industry. Many of the new projects won by the Company during the last year will see start of sales realization in the last quarter of current year and augment their standing in the market. The Company has been trying to utilize their current resources optimally and have minimized any new Capex this year. They are also working on lean operations and rationalizing their cost structure.
With the automotive sector being a key driver of the economy and growth returning to vehicle consumption in the last couple of months, they expect the auto component industry to grow in the range of 4-6 per cent in the current fiscal 2014-15.
The Company believes that a de-risked business model, strong emphasis on design and engineering capabilities, emphasis on productivity improvement, efficient utilization of assets, reduction in working capital and lean manufacturing will help in creating opportunities and maintaining their competitive advantage in the auto component industry.
In order to address the impact of rising interest rate, material cost, energy cost, availability of power and volatility in foreign exchange, the Company is taking appropriate measures to reduce the adverse impact on profitability for a sustained growth.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10515144 |
29/07/2014 |
2,787,519.00 |
KOTAK MAHINDRA PRIME LIMITED |
27BKC, C 27, G BLOCK, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, MAHARASHTRA - 400051, INDIA |
C16550873 |
|
2 |
10504916 |
16/09/2014 * |
1,500,000,000.00 |
SYNDICATE BANK |
CORPORATE FINANCE BRANCH, FIRST FLOOR,, SAROJINI
HOUSE, 6, BHAGWAN DASS ROAD, NEW DELHI, DELHI - 11 |
C20932422 |
|
3 |
10500787 |
16/09/2014 * |
250,000,000.00 |
HARYANA STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPM |
C-13 AND 14, INSTITUTIONAL AREA, SECTOR 6 PANCHKULA, HARYANA, HARYANA -134109, INDIA |
C21755129 |
|
4 |
10493720 |
16/09/2014 * |
250,000,000.00 |
SBERBANK |
UPPER GROUND FLOOR, GOPAL DAS BHAWAN, 28, BARAKHA MBA ROAD, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA |
C27557966 |
|
5 |
10442398 |
10/08/2013 |
300,000,000.00 |
KOTAK MAHINDRA BANK LIMITED |
7TH FLOOR, AMBADEEP BUILDING,, K G MARG,, NEW DELHI, DELHI - 110001, INDIA |
B81869547 |
|
6 |
10436575 |
11/07/2013 |
250,000,000.00 |
IDBI BANK LIMITED |
INDIAN RED CROSS SOCIETY BUILDING, 1, RED CROSS ROAD, POST BAG NO.231, NEW DELHI, DELHI - 110001, INDIA |
B79504619 |
|
7 |
10333706 |
05/01/2013 * |
170,000,000.00 |
AXIS BANK LIMITED. |
2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, |
B66914565 |
|
8 |
10274515 |
05/03/2012 * |
250,000,000.00 |
AXIS BANK LIMITED |
STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA |
B34696658 |
|
9 |
10262295 |
05/03/2012 * |
500,000,000.00 |
STATE BANK OF PATIALA |
COMMERCIAL BRANCH, CHANDERLOK BUILDING, JANPATH, NEW DELHI, DELHI - 110001, INDIA |
B35738335 |
|
10 |
10260338 |
05/03/2012 * |
500,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE |
B35064401 |
|
11 |
10240844 |
05/03/2012 * |
400,000,000.00 |
STATE BANK OF HYDERABAD |
COMMERCIAL BRANCH, 74, JANPATH, NEW DELHI, DELHI - 110001, INDIA |
B34822890 |
|
12 |
10208168 |
06/01/2011 * |
300,000,000.00 |
AXIS BANK LIMITED |
STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA |
B02784395 |
|
13 |
10188140 |
21/01/2010 * |
400,000,000.00 |
STATE BANK OF HYDERABAD |
COMMERCIAL BRANCH, 74, JANPATH, NEW DELHI, DELHI - 110001, INDIA |
A78216058 |
|
14 |
10188141 |
30/10/2009 |
50,000,000.00 |
STATE BANK OF HYDERABAD |
COMMERCIAL BRANCH, 74, JANPATH, NEW DELHI, DELHI - 110001, INDIA |
A74144650 |
|
15 |
10178513 |
21/01/2010 * |
350,000,000.00 |
STATE BANK OF PATIALA |
COMMERCIAL BRANCH, CHANDERLOK BUILDING, JANPATH, NEW DELHI, DELHI - 110001, INDIA |
A78248176 |
|
16 |
10178510 |
18/09/2009 |
300,000,000.00 |
STATE BANK OF PATIALA |
COMMERCIAL BRANCH, CHANDERLOK BUILDING,, JANPATH, NEW DELHI, DELHI - 110001, INDIA |
A70950373 |
|
17 |
10178508 |
18/09/2009 |
350,000,000.00 |
STATE BANK OF PATIALA |
COMMERCIAL BRANCH, CHANDERLOK BUILDING,, JANPATH, NEW DELHI, DELHI - 110001, INDIA |
A70949680 |
|
18 |
10177180 |
10/09/2009 |
20,000,000.00 |
KOTAK MAHINDRA BANK LIMITED |
7TH FLOOR, AMBADEEP BUILDING, KASTURBA GANDHI MARG, NEW DELHI, DELHI - 110001, INDIA |
A70453048 |
|
19 |
10157793 |
20/01/2014 * |
150,000,000.00 |
AXIS BANK LIMITED |
2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, |
B95258893 |
|
20 |
10137158 |
30/07/2009 * |
50,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA,, DR.
ANNIE BESANT ROAD, WORLI,, MUMBAI, MAHARASHTRA - |
A66654690 |
|
21 |
10112551 |
14/12/2009 * |
220,000,000.00 |
AXIS BANK LIMITED |
148, BARAKHAMBA ROAD, NEW DELHI, NEW DELHI, DELHI - 110001, INDIA |
A74622630 |
|
22 |
10038288 |
03/02/2007 |
100,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
A11085339 |
|
23 |
90044488 |
17/12/2004 |
5,000,000.00 |
STANDARD CHARSTERED BANK |
PARLIAMENST STREET, NEW DELHI, DELHI, INDIA |
- |
|
24 |
80022615 |
07/09/2013 * |
140,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, 6TH FLOOR, PALAM COURT,, GURGAON, HARYANA - 122001, INDIA |
B85861904 |
|
25 |
80023137 |
30/09/2004 * |
84,813,000.00 |
STATE GOVERNMENT OF HARYANA |
GENERAL MANAGER,DISTRICT INDUSTRIES CENTRE, REWARI, HARYANA, HARYANA - 122106, INDIA |
- |
|
26 |
80023143 |
30/09/2004 * |
205,728,000.00 |
STATE GOVERNMENT OF HARYANA |
GENERAL MANAGER,DISTRICT INDUSTRIES CENTRE, GURGAON, HARYANA, HARYANA - 122106, INDIA |
- |
* Date of charge modification
FIXED ASSETS
- Land
- Buildings
- Furniture and Fixtures
- Plant and Machinery
- Dies and Moulds
- Office Equipment
- Vehicles
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED JUNE 30, 2014
Rs. In Millions
|
Particulars |
Year ended |
|
|
30.06.2014 |
||
|
Unaudited |
||
|
|
|
|
|
1 |
Gross revenue |
2299.700 |
|
|
|
|
|
|
Income from Operations |
|
|
2 |
Net sales/income from
operations (Net of excise duty) |
1954.800 |
|
|
- Domestic |
1500.600 |
|
|
- Export |
454.200 |
|
3 |
Other Operating Income |
85.700 |
|
|
Total income from operations (net) |
2040.500 |
|
4 |
Expenses |
|
|
|
a) Cost of materials consumed |
1069.300 |
|
|
b) Change in inventories of finished goods and work-in-progress |
(19.200) |
|
|
c) Employee benefit expense |
280.10 |
|
|
d) Depreciation and amortisation |
161.600 |
|
|
e) Power and fuel |
238.00 |
|
|
(f) Other Expenses |
278.800 |
|
|
Total expenses |
2008.600 |
|
5 |
Profit/ (Loss) from operations before other Income, finance costs and
exceptional Items (1-2) |
31.900 |
|
6 |
Other Income |
94.000 |
|
7 |
Profit/ (Loss) from operations before other income, finance costs and
exceptional items (3+4) |
125.900 |
|
8 |
Finance Costs |
112.800 |
|
9 |
Profit/ (Loss) from ordinary activities after finance cost but before
exceptional items (5-6) |
13.100 |
|
10 |
Exceptional items |
14.800 |
|
11 |
Profit/ (Loss) from ordinary activities before tax (7+8) |
(1.700) |
|
12 |
Tax expenses |
5.600 |
|
13 |
Net Profit / (Loss) from ordinary activities after tax (9-10) |
(7.300) |
|
14 |
Extraordinary item (net of tax expense) |
-- |
|
15 |
Net Profit / (Loss) for the period (11-12) |
(7.300) |
|
16 |
Paid up equity share capital (Face Value of Rs10/- each) |
135.300 |
|
17 |
Reserve excluding Revaluation Reserve as per Balance Sheet of
previous accounting year |
-- |
|
18 |
Earnings per share (before extraordinary items) of Rs.10/- each (not
annualised): |
|
|
|
(a) Basic |
(0.05) |
|
|
(b) Diluted |
(0.05) |
|
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
1 |
Public Shareholding |
|
|
|
- Number of shares |
67505022 |
|
|
- Percentage of shareholding |
49.90% |
|
2 |
Promoters and Promoter group shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of shares |
35400000 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
52.23% |
|
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
26.17% |
|
|
b) Non Encumbered |
|
|
|
- Number of shares |
32379978 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
47.77% |
|
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
23.93% |
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
Nil |
|
|
Disposed off during the quarter |
Nil |
|
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES
1) The above Financial Results were reviewed by the Audit Committee and thereafter were approved and taken on record by the Board of Directors in their meeting held on 11th August, 2014
2) The Limited Review as required under Clause 41 of the Listing Agreement of the standalone results has been completed by the Statutory Auditors of the Company.
3) Previous quarter's/year amounts have been re-grouped/re-classified, wherever considered necessary to make them comparable with those of the current quarter.
4) As the Company’s primary segment falls within a single business segment viz. “Automotive Components”, accordingly disclosure requirements under Clause 41 of the Listing Agreement are not applicable.
5) The Consolidated Financial Results of the Company have been prepared in accordance with the Accounting Standards and includes the results of its Subsidiary and Joint Venture Companies.
6) A fire broke out on 7th December, 2012 at one section of the Company’s Ferrous Foundry Unit located at the Gurgaon Plant. During the year ended 31st March, 2013, the Company had recorded a receivable from the insurance company amounting to Rs.10.200 Millions to cover the book value of assets lost in the fire, after adjusting salvage value of Rs.8.200 Millions. Against the aforementioned receivable, Company has received Rs.10.000 Millions as upfront reimbursement. During quarter ended 30th June, 2014, the Company has received a sum of Rs.32.800 Millions as final settlement of the claim, of which Rs.0.200 Million has been adjusted against the balance receivable and the remaining Rs.32.600 Millions has been recorded as ‘Other income’ in the profit and loss account.
7) The Company had performed a detailed assessment to determine whether there is permanent diminution in the value of investments in two subsidiaries namely Rasa Autocom Limited and Rico Jinfei Wheels Limited and if advances or other receivables as of 31st March, 2014, from such subsidiaries are recoverable. The assessment was performed by a third party valuer, using business plans of these subsidiaries. Material estimates and judgments used for the purposes of business plans of these subsidiaries, which form the basis of such assessment, continue to be appropriate, accordingly, the management has concluded that no adjustments to the carrying values of underlying investments aggregating to Rs.505.300 Millions and advances or other receivables aggregating to Rs.498.200 Millions pertaining to these subsidiaries are required to be made in the financial results for the quarter ended 30th June, 2014.
8) Effective from 1st April, 2014, the Company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013. Further, based on transitional provision provided in Note 7(b) of Schedule II, an amount of Rs.28.800 Millions (net of deferred tax) has been adjusted against retained earnings. Based on the technical estimate and history of usage, the Company has retained useful life of certain categories of plant and machinery which is higher than the useful life as indicated in Schedule II. Owing to aforementioned change in estimate (except for certain categories of plant and machinery where the earlier useful life is retained), depreciation charge for the quarter is lower by Rs.22.600 Millions.
9) Exceptional item represents expenditure incurred pursuant to Voluntary Retirement Scheme of the Company.
10) Results are available at Company's website ricoauto.com and also at bseindia.com and nseindia.com.
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.61.39 |
|
|
1 |
Rs.98.00 |
|
Euro |
1 |
Rs.76.99 |
INFORMATION DETAILS
|
Information
Gathered by : |
HET |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
15 |
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.