MIRA INFORM REPORT

 

 

Report Date :

25.11.2014

 

IDENTIFICATION DETAILS

 

Name :

GHCL LIMITED

 

 

Registered Office :

GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad - 380009, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

14.10.1983

 

 

Com. Reg. No.:

04-006513

 

 

Capital Investment / Paid-up Capital :

Rs.1000.193 Millions

 

 

CIN No.:

[Company Identification No.]

L24100GJ1983PLC006513

 

 

IEC No.:

0588091529

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACG5609C

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacture of Inorganic Chemicals and Textiles.

 

 

No. of Employees :

3150 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having satisfactory track record.

 

Financial position of the company seems to be decent.

 

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

 

The company can be considered for 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.

 

 

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

CARE

Rating

Long Term Bank Facilities = BBB-

Rating Explanation

Have moderate degree of safety and carry moderate credit risk

Date

October 7, 2014

 

Rating Agency Name

CARE

Rating

Short Term Bank Facilities = A3+

Rating Explanation

Have moderate degree of safety and carry higher credit risk

Date

October 7, 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 PARTED BY

 

Name :

Mr. Sagar Gupta

Designation :

AGM Finance

Contact No.:

91-9714618844

Date :

21.11.2014

 

 

LOCATIONS

 

Registered Office :

GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad - 380009, Gujarat, India

Tel. No.:

91-79-26427818

Mobile No.:

91-9714618844 (Mr. Sagar Gupta)

Fax No.:

91-79-26423623

E-Mail :

secretarial@ghcl.co.in

navdeepk@ghcl.co.in

anandj@ghcl.co.in

asok@ghcl.co.in

mvmk@ghcl.co.in

pokhariyal@ghcl.co.in

exim@ghcl.co.in

shashigupta@ghcl.co.in

sanjeevgupta@ghcl.co.in

Website :

www.ghclindia.com

 

 

Corporate/ Head Office :

“GHCL House” B-38, Institutional Area, Sector – 1, Noida - 201 301, Uttar Pradesh, India

Tel. No.:

91-120-2536572/ 2535335 

Fax No.:

91-120-2535209/ 2534153

 

 

Work 1  :

Soda ash Plant, Village Sutrapada, Near Vereval, District Junagadh – 362275, Gujarat, India.

 

 

Work 2  :

Salt Works and Refinery

 

·         Ayyakaramulam, Kadinalvayal – 614707, District Nagapattinam, Tamilnadu, India

·         Nemeli Road, Thiruporur – 603110, Tamilnadu, India

 

 

Textiles :

·         Samayanallur P.O. Madurai – 625402, India.

·         Thaikesar Alai P.O Manaparai – 621312, India.

·         S. No. 191/192, Mahala Falia, Village Bhilad, District Valsad – 396105, Gujarat, India.

 

 

Energy Division :

·         Muppandal, Irukkandurai Village, Sankaneri Post Radhapuram Taluk, Tirunelveli District, Tamilnadu, India

 

·         Chinnaputhur Village, Dharapuram Taluk, Erode District, Tamilnadu, India

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. Sanjay Dalmia

Designation :

Non-Executive Chairman

 

 

Name :

Mr. Anurag Dalmia

Designation :

Non-Executive Director

 

 

Name :

Mr. Neelabh Dalmia

Designation :

Non-Executive Director

 

 

Name :

Dr. B.C. Jain

Designation :

Independent Director

 

 

Name :

Mr. D.C. Jain

Designation :

Nominee Director (IDBI Bank)

 

 

Name :

Mr. R M V Raman

Designation :

Nominee Director (Exim Bank)

 

 

Name :

Mr. Surendra Singh

Designation :

Independent Director

 

 

Name :

Mr. G C Srivastava

Designation :

Independent Director

 

 

Name :

Mr. Mahesh Kheria

Designation :

Independent Director

 

 

Name :

Mr. Sanjiv Tyagi

Designation :

Independent Director

 

 

Name :

Mr. S H Ruparell

Designation :

Non-Executive Director

 

 

Name :

Mr. R S Jalan

Designation :

Managing Director

 

 

Name :

Mr. Raman Chopra

Designation :

CFO and Executive Director (Finance)

 

 

KEY EXECUTIVES

 

Name :

Mr. Sagar Gupta

Designation :

Assistant General Manager Finance

 

 

Name :

Mr. Bhuwneshwar Mishra

Designation :

General Manager and Company Secretary

 

 

Name :

Manoj Kumar Ishwar

Designation :

Manager (Secretarial)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

76924

0.08

http://www.bseindia.com/include/images/clear.gifBodies Corporate

11994984

11.99

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

152000

0.15

http://www.bseindia.com/include/images/clear.gifTrusts

152000

0.15

http://www.bseindia.com/include/images/clear.gifSub Total

12223908

12.22

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

5507900

5.51

http://www.bseindia.com/include/images/clear.gifSub Total

5507900

5.51

Total shareholding of Promoter and Promoter Group (A)

17731808

17.73

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

16913

0.02

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

89517

0.09

http://www.bseindia.com/include/images/clear.gifInsurance Companies

6208120

6.21

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

15135146

15.13

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

68407

0.07

http://www.bseindia.com/include/images/clear.gifForeign Mutual Fund

68407

0.07

http://www.bseindia.com/include/images/clear.gifSub Total

21518103

21.51

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

28592046

28.59

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 1 lakh

17303429

17.30

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 1 lakh

11876379

11.87

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

2997521

3.00

http://www.bseindia.com/include/images/clear.gifClearing Members

276027

0.28

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

3900

0.00

http://www.bseindia.com/include/images/clear.gifMarket Maker

485750

0.49

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

1782370

1.78

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

391179

0.39

http://www.bseindia.com/include/images/clear.gifTrusts

1352

0.00

http://www.bseindia.com/include/images/clear.gifDirectors & their Relatives & Friends

56943

0.06

http://www.bseindia.com/include/images/clear.gifSub Total

60769375

60.76

Total Public shareholding (B)

82287478

82.27

Total (A)+(B)

100019286

100.00

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

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

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

100019286

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacture of Inorganic Chemicals and Textiles.

 

 

Products :

Item Code No. (ITC Code)

Product Description

28362000

Disodium Carbonate (Soda Ash)

52051100

Textile (Yarn)

55095000

Textile (Cloth)

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

 

Selling :

Cash, Cheque and Credit

 

 

Purchasing :

Cash, Cheque and Credit

 

PRODUCTION STATUS (As on 31.03.2014)

 

Particulars

 

Unit

Installed Capacity

Soda Ash

MT

711528

Salt

MT

47240

Yarn

MT

19212

Cloths (Fabric ‘000 Meters)

MTRS (‘000)

30282

Coal-Soda Ash

MT

711528

Lignite-Soda Ash

MT

711528

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

---

Contact No.:

---

Since How Long Known :

---

Experience :

---

Maximum Limit Dealt :

---

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

---

Contact No.:

---

Since How Long Known :

---

Experience :

---

Maximum Limit Dealt :

---

 

 

No. of Employees :

3150 (Approximately)

 

 

Bankers :

·         State Bank of Travancore

·         IDBI Bank Limited

·         State Bank of Hyderabad

·         Canara Bank

·         State Bank of Patiala

·         State Bank of Mysore

·         State Bank of Bikaner and Jaipur

·         Export Import Bank of India

·         State Bank of India

·         Tamilnad Merchantile Bank Limited

·         Bank of Maharashtra

·         Union Bank of India

·         Jammu and Kashmir Bank Limited

·         Bank of India

·         Andhra Bank

 

 

Facilities :

SECURED LOANS

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Rupee Term Loans

6583.064

5907.969

 

 

 

SHORT TERM BORROWINGS

 

 

Working Capital Loans from Banks

4947.756

4638.632

 

 

 

Total

11530.820

10546.601

Notes:

 

Rupee Term Loans from Banks / Institutions have been secured against :-

 

a) Loan aggregating to Rs.1042.752 Million is secured by extension of first charge on pari passu basis, by way of equitable mortgage on immovable properties of the Soda Ash Division situated at Sutrapada, Veraval, Gujarat and extension of hypothecation charge on movable assets, both present and future of the company’s Soda Ash division situated at village – Sutrapada, Veraval in Gujarat with other term lenders of the said project. The remaining tenure of the loans is 2 to 4 years.

 

b) Loan aggregating to Rs.1064.466 Million is secured by exclusive charge on the specific fixed assets created out of the proceeds of the loan for Company’s Soda Ash Division situated at village Sutrapada, Veraval in Gujarat. The remaining tenure of the loans is 5 to 9 years.

 

c) Loan aggregating to Rs.1249.899 Million is secured by way of first pari passu charge on movable fixed assets of Soda Ash Division situated at village Sutrapada, Veraval in Gujarat. The remaining tenure of the loans is 1 to 5 years.

 

d) Loan aggregating to Rs.331.218 Million is secured by first charge on pari passu basis by way of equitable mortgage on fixed assets of the Textile Division situated at Vapi, Gujarat and hypothecation of movable assets both present and future of the Company’s Textile Division at Vapi, Gujarat with other term lenders of the said project. The said loan is availed under Technology Up gradation Fund Scheme for Textile. The remaining tenure of the loans is 1 to 2 years.

 

e) Loan aggregating to Rs.406.171 Million is secured by exclusive charge on the specific fixed assets created out of the proceeds of the loan for company’s Home Textile Division situated at Vapi in Gujarat. The remaining tenure of the loans is 5 to 9 years.

 

f) Loan aggregating to Rs.475.020 Million is secured by way of first Pari Passu charge on movable fixed assets of company’s Home Textile Division situated at Vapi in Gujarat. The remaining tenure of the loans is 4 years.

 

1) Working Capital Loans are secured by way of hypothecation of stock-in-trade and book debts of Soda Ash / Home Textile Division / Edible Salt / Textile Divisions and second charge on fixed assets of Soda Ash Division / Home Textile Division and Textile Division, both present and future.

 

2) Specified movable assets referred to in the above notes include all movable assets of Soda Ash Division, Home Textile Division and Textile Division both present and future but subject to prior charge created and / or that may be created in favour of Company’s Bankers on stock-in-trade for securing borrowing for working capital.

 

 

 

Statutory Auditors :

 

Name :

Jayantilal Thakkar and Company

Chartered Accountants

 

Rahul Gautam Divan and Associates

Chartered Accountants

 

 

Secretarial Auditors :

K.R.Chandratre

Practicing Company Secretary

 

 

Memberships :

---

 

 

Collaborators :

---

 

 

Associates/Subsidiaries :

·         Indian England N.V.

·         Indian Wales N.V.

·         Indian Wales N.V.

·         Grace Home Fashion LLC

·         Indian England N.V.

·         Indian Wales N.V.

·         Dan River Properties LLC

·         Grace Home Fashions LLC

·         Rosebys Interiors India Limited

·         Teliforce Holding India Limited ( under Liquidation since 29th January, 2014)

·         Textile & Design Limited (under Liquidation since 25th September, 2009)

·         Rosebys UK Limited (Liquidated as at 24th December 2013)

·         GHCL Rosebys Limited (Liquidated as at 6th May, 2014)

·         Indian Britain B.V. (Liquidated as at 30th November, 2012)

·         Colwell & Salmon Communications Inc. (Liquidated as at 1st April, 2013)

·         DM Solar Farm Pvt Limited

·         TCP Limited (w.e.f. 31st January, 2014)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

175000000

Equity Shares

Rs.10/-each

Rs.1750.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100019286

Equity Shares

Rs.10/-each

Rs.1000.193 Million

 

Note:

 

(a) Reconciliation of equity shares outstanding at the beginning and at the end of the reporting year

Equity Shares

31.03.2014

No. of Shares

Amount

(Rs. in Millions)

At the beginning of the year

100019286

1000.193

Issued during the year

---

---

Outstanding at the end of the period

100019286

1000.193

 

(b) Rights, Preferences and restrictions attached to equity shares

    

The Company has one class of equity shares having a par value of ` 10 per share. Each shareholder is entitled to one vote per equity share held. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend. In the event of liquidation on the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

 

 

 

 

 

 

 

 

 

 

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

1000.193

1000.193

1000.193

(b) Reserves & Surplus

7597.770

9674.534

8615.520

(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)

8597.963

10674.727

9615.713

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

7233.269

6220.815

7043.601

(b) Deferred tax liabilities (Net)

1620.203

1632.740

1663.431

(c) Other long term liabilities

57.716

32.997

21.019

(d) long-term provisions

16.814

10.695

7.029

Total Non-current Liabilities (3)

8928.002

7897.247

8735.080

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

4947.756

4638.632

4817.128

(b) Trade payables

4170.483

3841.116

2298.128

(c) Other current liabilities

1752.003

1561.988

1946.794

(d) Short-term provisions

383.698

371.929

348.044

Total Current Liabilities (4)

11253.940

10413.665

9410.094

 

 

 

 

TOTAL

28779.905

28985.639

27760.887

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

18667.446

18693.058

18707.731

(ii) Intangible Assets

8.043

14.505

16.307

(iii) Capital work-in-progress

124.565

315.620

150.654

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

55.833

55.838

249.392

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

237.552

82.301

130.182

(e) Other Non-current assets

5.468

38.225

93.863

Total Non-Current Assets

19098.907

19199.547

19348.129

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

20.000

0.000

37.953

(b) Inventories

4041.808

3910.711

3245.273

(c) Trade receivables

2978.691

2411.292

1894.925

(d) Cash and cash equivalents

390.591

286.906

301.126

(e) Short-term loans and advances

2249.908

3177.183

2894.971

(f) Other current assets

0.000

0.000

38.510

Total Current Assets

9680.998

9786.092

8412.758

 

 

 

 

TOTAL

28779.905

28985.639

27760.887

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

22242.088

21249.464

18967.315

 

Other Income

49.988

29.849

96.266

 

TOTAL (A)

22292.076

21279.313

19063.581

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

8886.002

7909.135

7707.482

 

Purchases of Stock-in-Trade

333.494

612.912

920.143

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(101.347)

55.833

(243.541)

 

Employees benefits expense

1219.930

1110.334

999.252

 

Other expenses

7620.766

7395.458

5835.642

 

TOTAL (B)

17958.845

17083.672

15218.978

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

4333.231

4195.641

3844.603

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

1705.275

1579.618

1849.615

 

 

 

 

 

 

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

2627.956

2616.023

1994.988

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

815.677

819.672

808.486

 

 

 

 

 

Less/ Add

Exceptional Items

(309.720)

(395.832)

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

1502.559

1400.519

1186.502

 

 

 

 

 

Less

TAX (I)

339.639

251.254

11.707

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-I)   (J)

1162.920

1149.265

1174.795

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD  (K)

2221.830

1421.244

1457.027

 

 

 

 

 

Add

Earlier year excess proposed dividend and dividend distribution tax (L)

0.000

0.000

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Transfer to General Reserve

116.292

114.927

1000.000

 

Dividend

200.039

200.039

200.039

 

Tax on Dividend

33.997

33.997

32.451

 

Total (M)

350.328

348.963

1232.490

 

 

 

 

 

 

Balance Carried to the B/S (J+K+L-M)

3034.422

2221.546

1399.332

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

5975.187

5538.872

5206.334

 

Recovery towards Freight etc. on Exports

35.157

35.001

68.987

 

Others

0.000

0.700

3.047

 

TOTAL EARNINGS

6010.344

5574.573

5278.368

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials and Utilities

2027.744

1939.656

820.262

 

Components and Stores parts

36.476

40.489

46.081

 

Trading Goods

118.388

314.823

72.861

 

Capital Goods

76.198

457.185

330.619

 

TOTAL IMPORTS

2258.806

2752.153

1269.823

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

11.63

11.49

11.75

 

 

QUARTERLY RESULTS

                                                   (Rs. in Million)

Particulars

30.06.2014

 

Quarter

Audited /UnAudited

UnAudited

Net Sales

59.225 

Total Expenditure

48.513 

PBIDT (Excl OI)

10.712 

Other Income

0.120 

Operating Profit

10.832 

Interest

3.825 

Exceptional Items

0.000

PBDT

7.006 

Depreciation

1.900 

Profit Before Tax

5.107 

Tax

2.039 

Provisions and contingencies

0.000

Profit After Tax

3.068 

Extraordinary Items

0.000

Prior Period Expenses

0.000

Other Adjustments

0.000

Net Profit

3.068 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

 

31.03.2013

 

31.03.2012

 

 

 

 

 

 

Net Profit Margin

PAT / Sales

(%)

5.22

 

5.40

 

6.16

 

 

 
 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)
19.48

19.74

20.26

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

5.25

 

4.89

 

4.34

 

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.17

 

0.13

 

0.12

 

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.42

 

1.02

 

1.23

 

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.86

 

0.94

 

0.89

 

 

 

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

1000.193

1000.193

1000.193

Reserves & Surplus

8615.520

9674.534

7597.770

Net worth

9615.713

10674.727

8597.963

 

 

 

 

long-term borrowings

7043.601

6220.815

7233.269

Short term borrowings

4817.128

4638.632

4947.756

Total borrowings

11860.729

10859.447

12181.025

Debt/Equity ratio

1.233

1.017

1.417

 

 

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

18967.315

21249.464

22242.088

 

 

12.032

4.671

 

 

 

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

18967.315

21249.464

22242.088

Profit

1174.795

1149.265

1162.920

 

6.19%

5.41%

5.23%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITY LONG-TERM DEBT

Rs. In Millions

Particular

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

Current maturities of long-term debt

912.026

887.283

840.883

 

 

 

 

 

 

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

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

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 GUJARAT

 

SPECIAL CIVIL APPLICATION No. 9913 of 2012

 

Status : PENDING

( Converted from : ST/9771/2012 )

CCIN No : 001021201209913

 

Next Listing Date:

19.12.2014

Coram

HONOURABLE MS.JUSTICE HARSHA DEVANI

Not Before :

HONOURABLE MR.JUSTICE K.M.THAKER

HONOURABLE MR.JUSTICE RAJESH H.SHUKLA

 

 

 

S.NO.

Name of the Petitioner

Advocate On Record

1

GORDON JOHN TEXTILES LTD

MR HEMANG M SHAH for: Petitioner(s)  1

 

S.NO.

Name of the Respondant

Advocate On Record

1
2

GHCL LTD
RESERVE BANK OF INDIA

M/S TRIVEDI & GUPTA for :Respondent(s)  1
MR AMAR N BHATT for :Respondent(s)  2

 

 

Presented On

: 16.07.2012

Registered On

: 18.07.2012

Bench Category

: SINGLE BENCH

District

: AHMEDABAD

Case Originated From

: THROUGH HIS/HER/THEIR ADVOCATE

Listed

: 32 times

StageName

: NOTICE & ADJOURNED MATTERS

 

Classification

SJ - NON-SERVICE - LOWER COURT - CODE OF CIVIL PROCEDURE, 1908 - OTHER MISCELLANEOUS MATTERS

Act

CONSTITUTION OF INDIA

Other Forums

 

S.

No.

CASEDETAILS

TRIBUNAL REFERRENCE

ORDER PASSED BY

JUDGEMENT DATE

PLACE

1

EP/121/2010

-

-

31.03.2012

AHMEDABAD

Office Details

 

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

16/07/2012

CERTIFIED COPY

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s)  1

5

MR HEMANG M SHAH:1

2

16/07/2012

VAKALATNAMA

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s)  1

5

MR HEMANG M SHAH:1

3

16/07/2012

MEMO OF APPEAL/PETITION/SUIT

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s)  1

50

MR HEMANG M SHAH:1

4

27/07/2012

AFFIDAVIT OF DS

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s)  1

0

MR HEMANG M SHAH:1

5

31/07/2012

VAKALATNAMA

MR AMAR N BHATT ADVOCATE
for RESPONDENT(s)  2

5

MR AMAR N BHATT:2

6

03/08/2012

VAKALATNAMA

M/S TRIVEDI & GUPTA ADVOCATE
for RESPONDENT(s)  1

5

M/S TRIVEDI & GUPTA:1

7

15/08/2012

VAKALATNAMA

MR AMAR N BHATT ADVOCATE
for RESPONDENT(s)  2

4

MR AMAR N BHATT:2

8

15/08/2012

VAKALATNAMA

M/S TRIVEDI & GUPTA ADVOCATE
for RESPONDENT(s)  1

-

M/S TRIVEDI & GUPTA:1

9

15/08/2012

VAKALATNAMA

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s)  1

-

MR HEMANG M SHAH:1

10

17/08/2012

VAKALATNAMA

M/S TRIVEDI & GUPTA ADVOCATE
for RESPONDENT(s)  1

5

M/S TRIVEDI & GUPTA:1

11

22/08/2012

AFFIDAVIT

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s)  1

0

MR HEMANG M SHAH:1

12

11/03/2013

AFFIDAVIT IN REPLY

M/S TRIVEDI & GUPTA ADVOCATE
for RESPONDENT(s)  1

0

M/S TRIVEDI & GUPTA:1

13

13/03/2013

AFFIDAVIT

MR AMAR N BHATT ADVOCATE
for RESPONDENT(s)  2

0

MR AMAR N BHATT:2

Court Proceedings

 

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

19/12/2012

17

49

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE M.D. SHAH

2

10/01/2013

17

33

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE M.D. SHAH

3

28/01/2013

17

50

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE M.D. SHAH

4

19/02/2013

17

40

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE M.D. SHAH

5

13/03/2013

17

41

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

6

09/04/2013

17

49

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

7

29/04/2013

17

52

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

8

19/06/2013

16

53

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

9

17/07/2013

16

59

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

10

08/08/2013

16

67

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE G.B.SHAH

11

13/09/2013

12

34

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

HONOURABLE MR.JUSTICE G.B.SHAH

12

08/10/2013

12

43

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

13

12/11/2013

12

45

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

14

10/12/2013

12

33

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

15

26/12/2013

12

40

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

16

23/01/2014

15

40

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

HONOURABLE MR.JUSTICE K.M.THAKER

17

24/01/2014

15

81

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE R.M.CHHAYA

18

21/02/2014

15

87

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE R.M.CHHAYA

19

07/03/2014

15

83

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE R.M.CHHAYA

20

17/04/2014

15

5

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE R.M.CHHAYA

21

18/06/2014

12

39

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

HONOURABLE MR.JUSTICE R.M.CHHAYA and HONOURABLE MR.JUSTICE C.L. SONI

22

15/07/2014

11

44

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

23

19/08/2014

21

40

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

HONOURABLE MR.JUSTICE S.H.VORA

24

19/09/2014

20

27

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE S.H.VORA

25

08/10/2014

20

30

NOTICE & ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE S.H.VORA

26

19/12/2014

9

30

NOTICE & ADJOURNED MATTERS

 

HONOURABLE MS.JUSTICE HARSHA DEVANI

HONOURABLE MR.JUSTICE A.G.URAIZEE

Available Orders

 

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

1

SPECIAL CIVIL APPLICATION/9913/2012

HONOURABLE MR.JUSTICE ANANT S. DAVE

19/07/2012

N

ORDER

-

Y

 

 

INDEX OF CHARGES

 

S.

No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10530221

05/11/2014

500,000,000.00

State Bank of Mysore

Shitiratna Building, Panchwati Circle, Off. C.G. Road, Ambawadi, Ahmedabad, Gujarat - 380006, INDIA

C32957086

2

10506711

16/06/2014

500,000,000.00

DENA BANK

Industrial Finance Branch, 2nd Floor, Dena Laxmi Bldg., Ashram Road, Ahmedabad, Gujarat - 380009, INDIA

C09646548

3

10488721

29/03/2014

500,000,000.00

State Bank of Bikaner and Jaipur

State Bank of Bikaner and Jaipur, Centre, Swastic Char Rasta, Navrangpura, Ahmedabad, Gujarat - 380009, INDIA

C02411726

4

10488732

29/03/2014

250,000,000.00

State Bank of Mysore

State Bank of Mysore, Panchwati Circle,Off. C.G Road, Ambawadi, Ahmedabad, Gujarat - 380006, INDIA

C02450849

5

10481859

26/02/2014

500,000,000.00

Export-Import Bank of India

Centre One Building, Floor 21,, World Trade Center Complex, Cuffe Parade,, Mumbai, Maharashtra - 400005, INDIA

B98216021

6

10473243

07/01/2014

500,000,000.00

Canara Bank

Prime Corporate Branch, Jyoti Commercial Complex, Near Shyamal Cross Road, Satelite, Ahmedabad, Gujarat - 380015, INDIA

B94598422

7

10453795

24/09/2013

265,000,000.00

State Bank of Hyderabad

Ashram Road Branch, Nagin Das Chambers, Usmanpura , Ahmedabad, Gujarat - 380014, INDIA

B87020921

8

10425326

22/01/2014 *

500,000,000.00

State Bank of Travancore

"Kaivanna", Ground Floor, Ambawadi, Ellisbridge, 
Ahmedabad, Gujarat - 380006, INDIA

B95808168

9

10417552

22/01/2014 *

500,000,000.00

State Bank of Bikaner and Jaipur

C.G. Road Branch, Shop No 1 & 2, Shukan Business, Centre, Swastic Char Rasta, Navrangpura, Ahmedabad, Gujarat - 380009, INDIA

B96758206

10

10423342

22/03/2013

180,000,000.00

State Bank of Patiala

MID Corporate Branch, Vishwa Complex, Navrangpura 
, Ahmedabad, Gujarat - 380009, INDIA

B74263427

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Other Loans from banks

650.205

312.846

 

 

 

Total

650.205

312.846

 

 

PERFORMANCE HIGHLIGHTS

 

SODA ASH

 

The Global Soda Ash market which was around 52 million tons in 2012 is estimated to be approximately 54 million metric tons in 2013 against a capacity of about 65 Million MT.

 

Global demand for Soda Ash grew 2.8% annually over the last 5 years and is expected to grow 5% annually through 2017. The projected growth for this year is 4% with most of the growth expected to be in China, India, and South America. World operating rates will not improve due to continue over capacity.

 

Due to the global cost disparities, relative production costs will be a key issue for the soda ash industry in the future. Though demand for Soda Ash remained better during the year, price pressure from key inputs such as salt and energy weighed heavily.

 

Consumption of soda ash per person is expected to register healthy rise in the next few years with China leading the rankings with consumption from 10.85 kilograms in 2007 to an expected 12.00 kilograms in 2013. China is likely to add at least 2 Million MT capacities every year on the back of huge infrastructure investments.

 

The manufacturing and processing costs for producing soda ash from trona are more cost competitive than other manufacturing techniques partly because of the cost associated with procuring the material needed for synthetic production. In addition, trona-based production consumes less energy. The average cost of production per ton of soda ash (before freight and logistics costs) from trona is approximately one-third to one-half the cost per ton of soda ash from synthetic production. The future depends upon soda ash prices. Soda Ash prices fluctuate according to the demand supply situation in the global market, China in particular.

 

Due to depressed conditions prevailing in the Indian Economy, Soda Ash demand witnessed a flat growth in 2013-14. Market feedback suggests other than Detergents; all other consuming segments lead by Glass recorded lower growth. Most affected sectors are container glass and flat glass, which are under pressure because of over capacity and slow growth in demand. They are under pressure and continue to struggle with sharp decline in  sales and stock pile up and also their financial status is still a cause of concern.

Though reduced, imports continue to flow in high volumes. It is expected that on the back of improved GDP growth projected and growth in Glass (Construction/ Automobiles) and Detergents (FMCG penetration and growth) Soda Ash demand will continue to witness a reasonable growth. While domestic demand in 2013-14 has been flat, demand growth of 3 to 4% expected in the coming year 2014-15.

 

The Indian Soda Ash market constitutes of two varieties – Light (used in detergent industry) & Dense (used in Glass industry), with a share of 60% and 40% respectively. Total installed capacity in India was 3.1 Million MT. With an estimated production of about 2.5 Million MT in last financial year (2013- 14) the capacity utilization was of only 80%.

 

The total size of the Indian soda ash market is about 2.7 Million MT and almost all the major industry players are located in the state of Gujarat due to the closeness and ready availability of the main raw materials namely limestone and salt.

 

At present your Soda Ash plant has a capacity of 0.850 Million MTPA. During the financial year 2013-14 your company has produced 0.712 Million MT soda ash. This year, the Company has also achieved highest domestic sales i.e. 6.44 lacs MT and total sales of Soda Ash is 0.671 Million MT including exports.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

REVIEW OF ECONOMY

 

As per the Advanced Estimates released by the Central Statistical Organization (CSO) in February 2014, the growth in GDP during 2013-14 is estimated at 4.9% as compared to a growth rate of 4.5% in 2012-13, a slightly faster pace than in the previous year, mainly on an improved performance in the agriculture and allied sectors. However, the CSO had lowered growth for 2012-13 to 4.5% in its revised estimates from an earlier provisional forecast of 5%.

 

The farm sector, which accounts for nearly 14% of GDP, is estimated to grow 4.6% in 2013-14, sharply higher from the previous year’s 1.4% growth. This augurs well for the rural economy, which is expected to shield overall growth. But, a deep slowdown in the manufacturing and mining sectors continued, prompted calls for measures to reverse the trend.

 

 

FIXED ASSETS

 

Tangible Assets

·         Free hold Land

·         Leasehold Land

·         Buildings

·         Plant and Machinery

·         Wind Turbine Generators

·         Furniture and Fixture

·         Office Equipments

·         Vehicles

·         Leased Mines

·         Salt Works Reservoirs and Pans

 

Intangible Assets

 

·         Goodwill

·         Software

·         Trade Mark

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.85

UK Pound

1

Rs.97.01

Euro

1

Rs.77.62

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

PNM

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--MARGINS

-5~5

---

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

50

 

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

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NB

                                       New Business

 

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PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.