MIRA INFORM REPORT

 

 

Report Date :

28.11.2014

 

IDENTIFICATION DETAILS

 

Name :

APAR INDUSTRIES LIMITED (w.e.f  08.10.1999)

 

 

Formerly Known As :

GUJARAT APAR POLYMER LIMITED

 

 

Registered Office :

301, Panorama Complex,  R. C. Dutt Road, Vadodara – 390007, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

28.09.1989

 

 

Com. Reg. No.:

04-012802

 

 

Capital Investment / Paid-up Capital :

Rs.384.700 Millions

 

 

 

CIN No.:

[Company Identification No.]

L91110GJ1989PLC012802

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BRDA01335F / BRDA01312D / BRDA00836D

 

 

Legal Form :

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

 

 

Line of Business :

Manufacture of Conductors, Transformer/ Specialty Oils and Power/ Telecom cables.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (53)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well-established company having fine track record. There seems dip in the profit of the company.

 

However, the rating takes into consideration company’s well-established market position in the product segments in operates, along with long-term relationship with its customers and diversified revenue profile of the company.

 

Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitment.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

N E W S

 

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

 

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

 

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

 

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

 

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

 

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

 

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

 

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term bank facilities=A+

Rating Explanation

Have adequate degree of safety and carry low credit risk.

Date

14.11.2014

 

 

Rating Agency Name

CARE

Rating

Short term bank facilities=A1+

Rating Explanation

Have very strong degree of safety and carry lowest credit risk.

Date

14.11.2014

 

 

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 DENIED

 

Management Non Co-operative (91-265-2331935)

 

 

LOCATIONS

 

Registered Office/ Aluminium Conductors - Sales:

301, Panorama Complex, R. C. Dutt Road, Vadodara – 390007, Gujarat, India

Tel. No.:

91-265-2331935/ 2339906

Fax No.:

91-265-2330309

E-Mail :

aisbmby@bom3.vsnl.net.in

com_sec@apar.com

Website :

http://www.aparind.com

http://www.apar.com

 

 

Corporate Office/ Specialty Oils Sales :

Apar House, Corporate Park, Sion-Trombay Road, Chembur, Mumbai – 400071, Maharashtra, India

Tel. No.:

91-22-25263400/67800400

Fax No.:

91-22-25246326

E-Mail :

aisbmby@bom3.vsnl.net.in

corporate@apar.com

 

 

Specialty Oils Manufacturing Facility 1 :

Rabale – Navi Mumbai

18,TT.C. M.I.D.C. Industrial Area, Near Rabale Telephone. Exchange,
Thane Belapur Road, Rabale, Navi Mumbai - 400 701, Maharashtra, India.

Tel. No.:

91-22 - 27694756

Fax No.:

91-22 - 27694757

E-Mail :

apar_thane@apar.com

 

 

Specialty Oils Manufacturing Facility 2 / Al:

Silvassa – D. and NH

Survey No.148 / 1 – 148 / 3, Silvassa - Rakholi Road, Vilage - Kudacha, Silvassa-396 230 (U.T. of Dadra Nagar Haveli) India.

Tel. No.:

91-260 - 2630193 / 2630194 / 2630282 / 2630961

E-Mail :

aparsil@apar.com

 

 

Aluminium Conductors Manufacturing Facility :

Silvassa – D. and NH

Survey No.148 / 1 – 148 / 3, Silvassa - Rakholi Road, Vilage - Kudacha, Silvassa-396 230 (U.T. of Dadra Nagar Haveli) India.

Tel. No.: 91-260 - 2630193 / 2630194 / 2630282 / 2630961

 Email: aparsil@apar.com

 

Nalagarh – HP

Khasra No. 467, Hadbast No. 101, Muuza Beer Plassi, Tehsil. Nalagarh, 
P.O. Manjhauli (Jagatkhana),   District Solan - 174 101, Himachal Pradesh, India  

Tel. No.: 91-1795 - 265389 / 200384

Email: apar_nalagarh@apar.com

 

 

Cables Division Manufacturing

Plot No.158 to 163, GIDC, Umbergaon, District Valsad-396171, Gujarat, India

Tel. No.:

91-260-2562412 / 2563412

Fax No.:

91-260-2562950 / 2562954

E-Mail :

cable.production@apar.com

 

 

Cables Division Marketing  :

12/13, Jyoti Wire House, Off Veera Desai Road, Andheri (West), Mumbai – 400053, Maharashtra, India 

Tel. No.:

91 22 2674 0001/2/3

Fax No.:

91 22 2674 0600

E-Mail :

info.cable@apar.com

 

 

Branch Office  :

Located At:

 

·         Bangalore

·         Chennai

·         New India

·         Kolkata

·         Hyderabad

·         Pune

·         Jabalpur

·         Bhopal 

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Dr. Narendra D. Desai

Designation :

Chairman and Managing Director

Qualification :

B.Sc. (Hons), London, M.S. (Ele. Engg.), Ph.D., Penn., USA, Sigma XI, A.A.M.I.E.E.

Date of Appointment :

28.09.1989

 

 

Name :

Mr. N. K. Thingalaya

Designation :

Director

Date of Birth/Age :

04.11.1937

Qualification :

Ph. D. (Economics)

Date of Appointment :

27.07.2001

Other Directorships:-

Canbank Investment Management Services  Limited

 

 

Name :

Mr. F. B. Virani

Designation :

Director

Date of Birth/Age :

26.06.1945

Qualification :

B. E. (Chemical Engineering), M. S. (Chemical Engineering) (USA), MBA (USA)

Date of Appointment :

27.07.2001

Other Directorships:-

1. Dyna Cybertech Services Private Limited

2. Uniflex Cables Limited

 

 

Name :

Mr. Kushal N. Desai

Designation :

Managing Director

Date of Birth/Age :

21.02.1967

Qualification :

B.Sc. Hons., (Ele. Engg.) USA, B.S. Eco. Hons., (Wharton), USA

Date of Appointment :

24.03.1999

 

 

Name :

Mr. C. N. Desai

Designation :

Joint Managing Director

Date of Birth/Age :

15.07.1971

Qualification :

B.Sc (Hons.) (Chem. Engg.) USA, B.S. Eco. (Hons.) (Wharton), USA

Date of Appointment :

29.05.1993

 

 

Name :

Mr. H. N. Shah

Designation :

Director

 

 

Name :

Mr. Rajesh Sehgal

Designation :

Additional Director (w.e.f. 27th June, 2011)

Date of Birth/Age :

16.02.1971

Qualification :

PGDBM, CFA.

Other Directorships:-

HPL Additives Limited

 

 

Name :

Mr. Sanjiv Mahehwari

Designation :

Additional Director (w.e.f. 30.05.2014)

 

 

Name :

Mr. Suyash Saraogi

Designation :

Additional Director (w.e.f. 30.05.2014)

 

 

Name :

Ms. Nina Kapasi

Designation :

Additional Director (w.e.f. 30.05.2014)

 

 

KEY EXECUTIVES

 

Name :

Mr. Sanjaya Kunder

Designation :

Company Secretary

 

 

Audit Committee:

·         Mr. H. N. Shah, Chairman

·         Dr. N.K. Thingalaya

·         Mr. F.B. Virani

·         Mr. Rajesh Sehgal

·         Mr. Suyash Saraogi

·         Ms. Nina Kapasi

 

 

MAJOR SHAREHOLDERS

 

AS ON 30.06.2014

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

Individuals / Hindu Undivided Family

22296762

57.96

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

110978

0.29

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

1635687

4.25

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

1635687

4.25

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

24043427

62.50

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

 

 

Total shareholding of Promoter and Promoter Group (A)

24043427

62.50

(B) Public Shareholding

 

 

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

 

 

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

3069612

7.98

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

1009

0.00

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

1699267

4.42

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

4769888

12.40

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

 

 

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

5862679

15.24

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 Million

2309830

6.00

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Million

1210403

3.15

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

274204

0.71

http://www.bseindia.com/include/images/clear.gifForeign Nationals

120771

0.31

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

151885

0.39

http://www.bseindia.com/include/images/clear.gifTrust & Foundation

1548

0.00

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

9657116

25.10

Total Public shareholding (B)

14427004

37.50

Total (A)+(B)

38470431

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)

38470431

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacture of Conductors, Transformer/Speciality Oils and Power/ Telecom cables.

 

 

Products :

Product Description

Item Code No. (ITC Code)

Acrylonitrile Butadiene Rubber

4002.59

Transformer and Speciality Oils

2710.90

AAC/AAAC/ACSR Conductors

7614.90

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         Union Bank of India

·         Syndicate Bank

·         ING-Vysya Bank Limited

·         IDBI Bank Limited

·         ICICI Bank Limited

·         State Bank of India

·         Standard Chartered Bank

·         Bank of Baroda

·         Axis Bank Limited

·         Credit Agricole – Corporate and Investment Bank

 

 

Facilities :

SECURED LOANS

31.03.2014

Rs. In Millions

31.03.2013

Rs. In Millions

Long Term Borrowings

 

 

Foreign currency loan from banks

551.300

271.500

 

 

 

Short Term Borrowings

 

 

Working capital loans from banks

 

 

Rupee Loans

25.800

0.200

Packing Credit loan in foreign currency from banks

1407.000

441.400

 

 

 

Total

1984.100

713.100

 

NOTE:

 

Long Term Borrowings

 

·         The Foreign Currency term loan from Credit Agricole C and I Bank, Singapore is secured by exclusive charge on the assets acquired by the Company with the proceeds of the facility.

 

·         The Foreign Currency Term Loan from Union Bank of India, Hong Kong is secured by first charge by way of equitable mortgage by deposit of title deeds of Company’s Athola properties and exclusive hypothecation charge on the assets acquired by the Company with the proceeds of the facility situated at other locations.

 

·         Terms of repayment of term loan- In August 2014 Rs.89.900 Millions, in August, 2015 Rs.89.900 Millions, in May, 2016 Rs.95.900 Millions, in August, 2016 Rs.119.800 Millions, in May, 2017 Rs.107.900 Millions and in May, 2018 Rs.137.800 Millions.

 

Short Term Borrowings

 

Working capital loans from banks (secured) Rs.1432.800 Millions are secured by :

·         Hypothecation of specified stocks, specified book debts of the Company.

 

·         First charge by way of equitable mortgage by deposit of title deeds of Company’s specified immovable properties, both present and future.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Sharp and Tannan

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Subsidiary Companies :

·         Petroleum Specialties Pte. Limited, Singapore

·         Quantum Apar Specialty Oil Pty. Limited (subsidiary of Petroleum Specialties Pte. Limited)

·         Apar ChemateK Lubricants Limited (w.e.f. 26th September, 2012)

 

 

Joint Venture Company:

·         Apar ChemateK Lubricants Limited

(Upto 25.09.2012, became subsidiary w.e.f. 26.09.2012)

 

 

Entities over which significant influence is exercised by key management personnel / individuals having significant influence:
  • Apar Corporation Private Limited
  • Scope Private Limited and its' subsidiaries, viz
  • Apar Investment (Singapore) Pte. Limited
  • Apar Investment Inc.
  • Kushal N. Desai Family Trust
  • Apar Technologies Private Limited
  • Kushal Chaitanya N. Desai Family Trust
  • Chaitanya N. Desai Family Trust
  • Catalis World Private Limited
  • Gayatri Associates
  • AIL Benefit Trust

 

 

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

91998750

Equity Shares

Rs.10/- each

Rs.920.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

38470431

Equity Shares

Rs.10/- each

Rs.384.700 Millions

 

 

 

 

 

 

a.     Reconciliation of the number of shares outstanding at the beginning and at the end of the year.

 

 

March 31, 2014

Equity Shares

No. of shares

Rs.  Millions

At the beginning of the year

38470431

384.700

Issued during the period-fresh issue*

--

--

Outstanding at the end of the year

38470431

384.700

 

*Issued during the year to shareholders of erstwhile Uniflex Cables Limited as per the Scheme of Amalgamation

 

 

b.    Terms/rights attached to equity shares

 

1.     The Company has one class of equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2.     During the year ended 31st March 2014, the amount of per share dividend recognised as distributions to equity shareholders is Rs.5.25, (Previous year Rs.5.25)

3.     In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

 

c.     Details of Shareholders holding more than 5% shares in the company

 

Equity shares of Rs. 10/- each fully paid

March 31, 2014

No. of shares

% of holdings in the class

Dr. N. D. Desai

7371861

19.16

Kushal N. Desai

7378528

19.18

Chaitanya N. Desai

7367360

19.15

Templeton Strategic Emerging Markets Fund III, L.D.C.

3636363

9.45

Reliance Capital Trustee Company Limited A/c. Reliance Diversified Power Sector Fund

19313213

5.02

Shinny Limited, Mauritius

--

--

 

As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

 

 

d.    Shares reserved for issue under options

 

The Company provides share-based payment to its employees. During the year ended 31st March, 2014, an Employee Stock Option Plan (ESOP) was in existence. The relevant details of the scheme and the grant are as below:

Members’ approval was obtained at the Annual General Meeting held on 9th August, 2007 for introduction of Employee Stock Option Scheme to issue and grant upto 1,616,802 options, but the Board has granted 175,150 options till date.

 

Particulars

March 31, 2014

Outstanding at the beginning of the year

175150

Vested during the year

--

Forfeited during the year

75856

Exercised during the year

--

Outstanding at the end of the year

99294

Exercisable at the end of the year

99294

 

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

384.700

384.700

359.700

(b) Reserves & Surplus

5683.000

5217.300

4324.900

(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)

6067.700

5602.000

4709.600

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

701.300

329.400

346.500

(b) Deferred tax liabilities (Net)

225.300

109.500

134.700

(c) Other long term liabilities

66.500

137.900

410.500

(d) long-term provisions

28.500

25.800

24.200

Total Non-current Liabilities (3)

1021.600

602.600

915.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

7079.900

9403.200

9323.200

(b) Trade payables

13864.000

13277.000

8556.300

(c) Other current liabilities

972.600

2933.100

4019.700

(d) Short-term provisions

242.900

242.200

188.400

Total Current Liabilities (4)

22159.400

25855.500

22087.600

 

 

 

 

TOTAL

29248.700

32060.100

27713.100

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3346.600

2396.200

1801.500

(ii) Intangible Assets

30.800

26.900

15.100

(iii) Capital work-in-progress

180.800

451.000

212.800

(iv) Intangible assets under development

0.000

2.800

3.500

(b) Non-current Investments

284.900

284.900

59.800

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

446.400

457.200

463.300

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

4289.500

3619.000

2556.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

15.000

796.200

0.000

(b) Inventories

10104.400

7408.500

6662.500

(c) Trade receivables

10442.100

7935.600

8320.500

(d) Cash and cash equivalents

2272.300

10320.900

8245.800

(e) Short-term loans and advances

1641.900

1314.600

1383.600

(f) Other current assets

483.500

665.300

544.700

Total Current Assets

24959.200

28441.100

25157.100

 

 

 

 

TOTAL

29248.700

32060.100

27713.100

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

44832.000

45321.900

34532.600

 

 

Other Income

44.700

77.000

5.400

 

 

TOTAL                                              (A)

44876.700

45398.900

34538.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of raw materials and components consumed

35004.200

35559.100

28499.100

 

 

Purchases of stock-in-trade

773.500

293.300

107.400

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

(77.200)

(197.000)

(614.900)

 

 

Employee benefits expense

591.700

518.100

439.400

 

 

Other expenses

5855.700

6211.200

4137.600

 

 

Exceptional items

8.600

46.200

19.600

 

 

Transfer to capital assets

(35.100)

(16.700)

0.000

 

 

TOTAL                                               (B)

42121.400

42414.200

32588.200

 

 

 

 

 

 

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

2755.300

2984.700

1949.800

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

1458.100

1343.100

1141.300

 

 

 

 

 

 

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

1297.200

1641.600

808.500

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                     (F)

268.900

238.600

212.800

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

1028.300

1403.000

595.700

 

 

 

 

 

Less

TAX                                                                  (H)

340.400

381.400

2.500

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

687.900

1021.600

593.200

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1585.500

1041.200

1735.400

 

 

 

 

 

 

Loss of Amalgamating Subsidiary

0.000

(57.600)

(1019.500)

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

200.000

183.400

89.000

 

 

Proposed Dividend

202.000

202.000

153.900

 

 

Tax on Proposed Dividend

34.300

34.300

25.000

 

BALANCE CARRIED TO THE B/S

1837.100

1585.500

1041.200

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods calculated on FOB basis

13671.400

12825.400

8844.600

 

 

Deemed Exports

142.500

0.900

698.400

 

 

Dividend from subsidiaries

0.000

54.500

0.000

 

 

Other Earnings

565.200

877.300

315.600

 

TOTAL EARNINGS

14379.100

13758.100

9858.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

29781.800

22406.900

17691.500

 

 

Stores & Spares

17.200

3.600

2.400

 

 

Capital Goods

142.100

137.600

32.700

 

TOTAL IMPORTS

29941.100

22548.100

18138.500

 

 

 

 

 

 

Earnings Per Share (Rs.)

17.88

26.56

15.55

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

1.53

2.25

1.72

 

 

 

 

 

Operating Profit Margin

(PBDIT / Sales)

(%)

6.15

6.58

5.65

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.57

4.48

2.17

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.17

0.25

0.13

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.28

1.74

2.05

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.13

1.10

1.14

 

 

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

359.700

384.700

384.700

Reserves & Surplus

4324.900

5217.300

5683.000

Net worth

4684.600

5602.000

6067.700

 

 

 

 

long-term borrowings

346.500

329.400

701.300

Short term borrowings

9323.200

9403.200

7079.900

Total borrowings

9669.700

9732.600

7781.200

Debt/Equity ratio

2.064

1.737

1.282

 

 

 

 

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

34,532.600

45,321.900

44,832.000

 

 

31.244

(1.081)

 

 

 

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

34,532.600

45,321.900

44,832.000

Profit

593.200

1,021.600

687.900

 

1.72%

2.25%

1.53%

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------

26]

Buyer visit details

----------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

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

 

 

LITIGATION DETAILS:

 

 

 

 

HIGH COURT OF GUJARAT

 

 

CIVIL APPLICATION No. 758 of 2013

 

In TAX APPEAL / 1167 / 2013 ( PENDING )

 

Status : PENDING

( Converted from : O/ST/2762/2013 )

CCIN No : 001073201300758

 

 

Last Listing Date:

14/03/2014

 

Coram

HONOURABLE MR.JUSTICE AKIL KURESHI

HONOURABLE MS JUSTICE SONIA GOKANI

 

 

 

 

S.NO.

Name of the Petitioner

Advocate On Record

1

STATE OF GUJARAT

GOVERNMENT PLEADER for: Applicant(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

S.NO.

Name of the Respondant

Advocate On Record

1

APAR INDUSTRIES LTD

 

 

 

Presented On

: 11/10/2013

Registered On

: 26/12/2013

Bench Category

: -

District

: BHARUCH

Case Originated From

: THROUGH STATE

Listed

: 5 times

StageName

: ADJOURNED MATTERS

 

Classification

DB - CIVIL APPLICATION - CODE OF CIVIL PROCEDURE, 1908 - STAY / INTERIM RELIEF - IN SPECIAL CIVIL APPLICATION

Act

CIVIL PROCEDURE CODE, 1908

 

Office Details

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

11/10/2013

APPEARANCE NOTE

GOVERNMENT PLEADER 
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

0

GOVERNMENT PLEADER(1) for P:1

2

11/10/2013

MEMO OF APPEAL/PETITION/SUIT

GOVERNMENT PLEADER 
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

20

GOVERNMENT PLEADER(1), for P:1

 

Court Proceedings

 

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

27/12/2013

5

37

ADMISSION (FRESH MATTERS)

NEXT DATE

HONOURABLE MR.JUSTICE M.R. SHAH 

HONOURABLE MR.JUSTICE R.P.DHOLARIA

2

15/01/2014

7

28

ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE M.R. SHAH 

HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MS JUSTICE SONIA GOKANI and HONOURABLE MR.JUSTICE R.P.DHOLARIA

3

05/02/2014

7

20

ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE AKIL KURESHI 

HONOURABLE MS JUSTICE SONIA GOKANI

4

28/02/2014

7

22

ADJOURNED MATTERS

NEXT DATE

HONOURABLE MR.JUSTICE AKIL KURESHI 

HONOURABLE MS JUSTICE SONIA GOKANI

5

14/03/2014

7

34

ADJOURNED MATTERS

ADJOURNMENT SINE DIE

HONOURABLE MR.JUSTICE AKIL KURESHI 

HONOURABLE MS JUSTICE SONIA GOKANI

 

TOP CLOSE 

 

 

 

 

UNSECURED LOANS:

 

Particulars

31.03.2014

Rs. In Millions

31.03.2013

Rs. In Millions

Long Term Borrowings

 

 

Public Deposits

143.500

55.400

Deposits from Directors

6.500

2.500

 

 

 

Short Term Borrowings

 

 

Packing credit loan in foreign currency from Banks

818.600

415.300

Buyer's credit in foreign currency

4784.200

8503.800

Loans and Advances from related parties repayable on demand

0.000

0.800

Public deposits

5.800

3.200

Director’s deposits

38.500

38.500

 

 

 

Total

5797.100

9019.500

 

 

INDEX OF CHARGE:

 

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10449812

17/09/2013

330,000,000.00

UNION BANK OF INDIA

OVERSEAS BRANCH, UNION BANK BHAVAN,, 239, VIDHAN BHAVAN MARG, NARIMAN POINT,, MUMBAI, MAHARASHTRA -
400021, INDIA

B85302081

2

10426504

15/05/2013

330,000,000.00

UNION BANK OF INDIA

OVERSEAS BRANCH, UNION BANK BHAVAN, GROUND FLOOR,,
239, VIDHAN BHAVAN MARG, NARIMAN POINT,, MUMBAI,
MAHARASHTRA - 400021, INDIA

B75406249

3

10348687

26/03/2014 *

36,000,000,000.00

IL & FS TRUST COMPANY LIMITED

IL & FS TRUST COMPANY LIMITED, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA

C02467264

4

10317838

14/11/2011

250,400,000.00

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK

168, ROBINSON ROAD,, #22-01, CAPITAL TOWER,, SINGAPORE, - 068912, SINGAPORE

B25379025

5

10133842

27/11/2013 *

30,356,500,000.00

IL & FS TRUST COMPANY LIMITED

IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA
- 400051, INDIA

B90609207

6

10131264

28/07/2010 *

1,100,000,000.00

IL & FS TRUST COMPANY LIMITED

IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA
- 400051, INDIA

A90488669

7

10105169

28/07/2010 *

1,100,000,000.00

IL & FS TRUST COMPANY LIMITED

IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI, MAHARASHTRA
- 400051, INDIA

A90488446

8

90212256

13/10/1992 *

6,621,000.00

GUJRAT STATE FINANCIAL CORPORTION

JALDARSHAN BUILDING; ASHRAM ROAD;, AHEMADABAD, GUJARAT - 380009, INDIA

-

 

*Date of modification Charges

 

 

MANAGEMENT DISCUSSION AND ANALYSIS/ OUTLOOK

 

The growth in the domestic power sector in FY 2014 was constrained given the uncertainties around fuel supply, financial condition of discoms, challenges of land acquisition, water linkages and environmental clearances which had a direct impact on subject. However, given the impetus expected from the new government at the Centre with regards acceleration of reforms, we see a brighter phase on the horizon. Subject has, during the year, taken strong strategic initiatives to strengthen our position further so that we can be well prepared as the sector turns.

 

Subject is the 3rd largest conductor manufacturer and the fourth largest transformer oil manufacturer in the world. Growing exports, strong technical capabilities, higher focus on R&D and improved operational efficiency has enabled subject to consolidate our leadership position in our major product segments, conductors and Specialty and Transformer oils. As a result, we have continued to grow and expand over the last few years despite trying times in the Indian power sector.

 

There continuous in-house R&D efforts and strategic tie-ups have spurred development of many new technology products for Subject like Extra high voltage transformer oils, high temperature conductors, e-beam cables and new generation optical fibre cables (OFC). These higher margin products, with good growth prospects and fewer competitors will drive the company’s growth and profitability going forward.

 

The year gone by saw subject complete expansion of capacities to drive growth in high value products. The Athola conductor’s plant, focused on high quality products for the export markets, is already operating at full capacity of 3,000 Mt per monthn and the Khatalwad cable plant has been fully commissioned. The new businesses have seen a positive response with first orders already placed. Going forward, we see acceleration in these new higher margin segments spurring growth in India and abroad.

 

INDUSTRY STRUCTURE, DEVELOPMENT, OPPORTUNITIES, THREATS, OUTLOOK AND RISK AND CONCERNS

 

GLOBAL SCENARIO

 

As per Industry report by Ministry of Heavy Industries and Public Enterprises, global electricity consumption is growing at 2.4% to reach 29000TWh by 2030. This is expected to drive global electrical equipment market at 2% growth to reach US$ 6,600bn by 2030. India, as of now, contributes only 1% to global exports of electrical equipments with strong potential to increase share going forward.

 

Indian market

 

The size of the domestic market in generation equipment is expected to reach US$ 25-30bn by 2022 (from US$ 5.7bn in 2011) driven by huge power demand expected for the growing Indian economy. As a result, the Transmission & Distribution (T&D) equipment industry is estimated to grow to US$ 70-75bn (from US$ 18.5bn in 2011). This translates into a CAGR of around 14%.

 

According to an Industry report by FICCI, in association with Booz & Co., there is huge opportunity in the domestic T&D sector with investment required in the industry pegged at USD 35bn out of which USD 19bn will be from Power Grid Corporation of India Limited (PGCIL) and remaining USD 16bn will be secured from private players.

 

As per Industry report from Engineering Review, peak demand in India is expected to increase to more than 500,000 MW by 2027 for which Installed generation capacity of about 700,000 MW is required.

 

However, the recent policy jam in the sector has resulted in slower than expected progress. The 12th Five Year Plan (2012-2017) targeted a capacity addition in power generation of 88,537 MW and addition of transmission lines of 165,000 Circuit Kilometers (CKT). In the completed 2 years of the 12th plan, 33,000 MW of generating capacity has been added, representing 37% of the planned addition. In the same period, 32,000 CKT of transmission lines has been added, representing 19.5% of the planned addition.

 

Business performance

 

Subject derives 71.14% of its revenue from the power sector, with the major demand drivers coming from infrastructure expansion in transmission and distribution. In the last two years, the government has been plagued with policy paralysis, and the consequential damages of this have affected the power sector the most. From the figures shown above, the implementation of transmission lines is only 19.5% vs. a pro-rata implementation of 40%. This is also reflective of the order position of the conductor industry in general, which received its lowest level of orders in FY2014. Power grid, the largest implementation agency for transmission lines was conspicuous by its absence. While as many as 120 transmission projects have stalled or delayed due to Right of Way (Row) and many other clearances.

 

STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2014
                                                                                                                                                      (Rs. In Millions)

Particulars

3 Months Ended

30.09.2014

30.06.2014

(Unaudited)

(Unaudited)

1. Income from Operations

 

 

(a) Net Sales / Income from Operations (Net of excise duty)

12331.100

11214.100

(b) Other Operating Income

105.300

91.600

Total Income from Operations (net)

12436.400

11305.700

2. Expenses

 

 

a. Cost of Materials consumed

9985.700

9018.000

b. Purchase of stock-in-trade

131.100

160.600

c. Changes in inventories of finished goods, work-in-progress, stock-in-trade and scrap

(498.400)

(354.900)

d. Power and Fuel

 

0.000

e. Consumption of Stores and Spare Parts

 

0.000

f. Employee Benefits expenses

174.600

166.900

g. Depreciation and amortization expenses

76.200

69.600

h. Other Expenses

1870.400

1681.600

Total Expenses

11739.600

10741.800

3. Profit from Operations before Other Income, Finance costs and Exceptional Items (1-2)

696.800

563.900

4. Other Income

11.900

69.200

5. Profit from ordinary activities before Finance Costs and Exceptional Items (3 + 4)

708.700

633.100

6. Finance costs

472.500

365.900

7. Profit / (Loss) from ordinary activities after Finance Costs but before Exceptional Items (5 - 6)

236.200

267.200

8. Exceptional Items

--

--

9. Profit / (Loss) from Ordinary Activities before Tax (7 ± 8)

236.200

267.200

10. Tax Expense (Note 1 below)

76.700

65.800

11. Net Profit / (Loss) from Ordinary Activities after Tax (9 ± 10)

159.500

201.400

12. Extraordinary Items (net of tax expenses)

-

--

13. Net Profit / (Loss) for the period (11 ± 12 )

159.500

201.400

14. Paid-up Equity Share Capital [Face value Re.1 each]

384.900

348.700

15. Reserves excluding Revaluation Reserve

(as per Balance Sheet of the previous accounting year)

--

-

16. Earning Per Share (before / after Extraordinary Items) (of Re.1 each) (not annualised)

 

 

Basic

4.15

5.24

Diluted

4.15

5.24

Part II

 

 

A. PARTICULARS OF SHAREHOLDING @

 

 

1. Public Shareholding

 

 

- Number of Shares

14450733

14427004

- Percentage of Shareholding

37.54

37.50

2. Promoters and Promoter Group Shareholding

 

 

a) Pledged / Encumbered

 

 

- Number of Shares

 

Nil

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

 

Nil

- Percentage of shares (as a % of the total share capital of the company)

 

Nil

b) Non-encumbered

 

 

- Number of Shares

24043427

24043427

-           Percentage of shares (as a % of the total shareholding of promoter and promoter group)

100.00

100.00

-           Percentage of shares (as a % of the total share capital of the company)

62.46

62.50

 

Particulars

3 months ended

30.09.2014

B. INVESTOR COMPLAINTS

 

Pending at the beginning of the quarter

Nil

Received during the quarter

2

Disposed of during quarter

2

Remaining unresolved at the end of the quarter

Nil

 

 

 

STANDALONE SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

 

 

Particulars

3 Months Ended

30.09.2014

30.06.2014

(Unaudited)

(Unaudited)

1. Segment Revenue (Net Sales / Income from Operations)

 

 

Conductors

5448.400

4174.500

Tansformer and Spaciality Oil

5654.200

5615.200

Power / Telecom Cable

1297.300

1479.500

Unallocated

61.600

58.800

Total Segment Revenue

12461.500

11328.000

Less: Inter-Segment Revenue

25.100

22.300

Net Sales / Income from Operations

12436.400

11305.700

 

 

 

2. Segment Results [Profit(+)/Loss(-) before tax and finance costs from each segment]

 

 

Conductors

416.700

299.800

Tansformer and Spaciality Oil

329.700

324.900

Power / Telecom Cable

(1.600)

54.200

c.         Unallocated

(5.800

6.700

Total

750.600

685.600

Less:

 

 

a.         Finance costs

472.500

365.900

b.         Other Un-allocable Expenditure

(Net of Un-allocable Income)

41.900

52.500

Total Profit(+) / Loss(-) before Tax

236.200

267.200

 

 

 

3. Capital Employed

(Segment Assets less Segment Liabilities)

 

 

Conductors

2254.200

3377.300

Tansformer and Spaciality Oil

3636.300

3256.000

Power / Telecom Cable

3432.600

3034.100

Unallocated

568.300

242.000

Total

9891.400

9909.400

 

 

Note:

 

  1. The above standalone unaudited financial results were reviewed by the Audit Committee of Directors and approved by the Board of Directors at their meetings held  on 31st October, 2014. The statutory auditors of the Company have carried out a limited review of the above standalone results for the quarter ended 30th September, 2014. The Review Report has been filed with the stock exchanges and is also available on the Company's website.
  2. The Company has allotted on 25th September, 2014, 23,729 Equity Shares to employees / director of the Company under Apar Industries Limited Stock Option Plan 2007 at an Exercise Price of Rs. 207.05 per option / share and consequent upon above allotment, the Issued, Subscribed and Paid-up Equity Share Capital of the Company has increased to Rs. 384,941,600 divided into 38,494,160 Equity Shares of Rs. 10 each. These new equity shares were admitted in the records of deposits and listed during October 2014.
  3. The Company has purchased the balance 2.5% shares in its subsidiary, Apar Chematek Lubricants Limited n(ACLL). After the purchase, ACLL has now become a wholly-owned subsidiary of the Company and its name has been changed to “Apar Lubricants Limited”

 

  1.  

Additional information:

 

Particulars

Six Months Ended

Year Ended

 

30.09.2014

30.09.2013

31.03.2014

 

(Unaudited)

(Unaudited)

(Unaudited)

Revenue

24386.400

21419.700

46374.000

Profit before tax

518.200

713.700

1285.300

Profit after tax and minority interest

358.200

502.800

896.500

Bacis/Diluted EPS-

93.100

130.700

233.000

 

 

  1. Disclosure of Assets and Liabilities as per Clause 41(I) (ea) of the Listing Agreements as at 30th September, 2014 is given in annexure 1

 

  1. The financial results of the Company are being forwarded to the Stock Exchanges (BSE and NSE) for up

loading on their respective websites and the same are also made available on the Company's website viz., www.apar.com.

 

  1. Figures for previous periods/ year have been regrouped, wherever necessary.

 

 

STATEMENT OF ASSETS AND LIABILITIES

 

Particulars

 

As at 30.09.2014

(Unaudited)

A

EQUITY AND LIABILITIES

 

1

Shareholders' Funds

 

 

(a) Share Capital

384.900

 

(b) Reserves & Surplus

6011.700

 

Total Shareholders’ Funds

6396.600

 

 

 

2

Non-Current Liabilities

 

 

(a) long-term borrowings

475.700

 

(b) Deferred tax liabilities (Net)

236.200

 

(c) Other long term liabilities

50.800

 

(d) long-term provisions

19.500

 

   Sub Total Non-current Liabilities

782.200

 

 

 

3

Current Liabilities

 

 

(a) Short term borrowings

4227.600

 

(b) Trade payables

14983.600

 

(c) Other current liabilities

1687.200

 

(d) Short-term provisions

26.000

 

Sub Total Current Liabilities

20924.400

 

 

 

 

TOTAL- EQUITY AND LIABILITIES

28103.200

 

 

 

A

ASSETS

 

1

Non-current assets

 

 

(a) Fixed Assets

3724.300

 

(b) Non-current Investments

299.300

 

(c)  Long-term Loan and Advances

479.100

 

(d) Other Non-current assets

0.000

 

Sub Total Non-Current Assets

4502.700

 

 

 

2

 Current assets

 

 

(a) Current investments

5.400

 

(b) Inventories

10228.000

 

(c) Trade receivables

11359.500

 

(d) Cash and cash equivalents

692.300

 

(e) Short-term loans and advances

1006.700

 

(f) Other current assets

308.600

 

Sub Total Current Assets

23600.500

 

 

 

 

TOTAL-ASSETS

28103.200

 

 

 

FIXED ASSETS:

 

·         Land Freehold

·         Leasehold Building

·         Plant and Machinery

·         Furniture and Fixture

·         Motor Vehicles

·         Intangible Assets

 

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

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

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 60.86

UK Pound

1

Rs. 97.69

Euro

1

Rs.77.37

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ART

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

53

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NB

NEW BUSINESS

 

 

 

 

 

 

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

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