MIRA INFORM REPORT
|
Report Date : |
28.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
EICHER MOTORS LIMITED |
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Registered
Office : |
3rd Floor, Select Citywalk, A-3, District Centre, Saket,
New Delhi - 110017 |
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Country : |
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Financials (as
on) : |
31.12.2013 |
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Date of
Incorporation : |
14.10.1982 |
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Com. Reg. No.: |
55-129877 |
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Capital
Investment / Paid-up Capital : |
Rs. 270.400 Millions |
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CIN No.: [Company Identification
No.] |
L34102DL1982PLC129877 |
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IEC No.: |
Not Divulged |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Divulged |
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PAN No.: [Permanent Account No.] |
Not Divulged |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Reliable, Fuel-Efficient Commercial Vehicles of high quality and Modern Technology, Engineering Components. |
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No. of Employees
: |
1052 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 32900000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having a fine track
record. Financial position of the company seems to be sound and healthy. Trade relations are reported as praiseworthy. Business is active.
Payments are reported to be regular and as per commitments. 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.
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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based working capital facilities = AA + |
|
Rating Explanation |
Have high degree of safety and carry very
low credit risk. |
|
Date |
October, 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non-Fund based facilities = A1+ |
|
Rating Explanation |
Have very strong degree of safety and carry
lowest credit risk. |
|
Date |
October, 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 BY
MANAGEMENT NON-COOPERATIVE (91-124-4415600)
LOCATIONS
|
Registered Office : |
3rd Floor, Select Citywalk, A-3, District Centre, Saket,
New Delhi - 110017, India |
|
Tel. No.: |
91-11-29563722 |
|
Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Head Office : |
Eicher House, 12, Commercial Complex, Greater Kailash -
II, (Masjid Moth) |
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Tel. No.: |
91-11-41437600 |
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Fax No.: |
91-11-41437700 |
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Corporate Office : |
#96, Sector 32, Gurgaon – 122001, Haryana, India |
|
Tel. No.: |
91-124-4415600 |
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Factory 1 : |
Two Wheelers Royal Enfield, Thiruvottiyur
High Road, Post Box No.5284, Thiruvottiyur, Chennai - 600019, Tamilnadu,
India |
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Factory 2 : |
The CV Unit 102, Industrial Area No.1, Pithampur, Dhar District –
454775, Madhya Pradesh, India |
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Factory 3 : |
Eicher Engineering Components, S.V. Road, Thane – 400607, Maharashtra
- India |
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Factory 4 : |
Eicher Engineering Components, Indonippon Food Premises No.7, HSIDC,
Sector-18, Palam-Gurgoan Road, Gurgaon – 122015, Haryana, India |
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Factory 5 : |
78-86, Industrial Area No. lll, AB Road, Dewas – 455001, Madhya
Pradesh, India |
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Factory 6 : |
A-19/1, SIPCOT Industrial Growth Centre, Oragadam,
Kanchipuram - 602105, Tamilnadu, India |
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Branch Office : |
Eicher Engeering Solutions, Tower-B, 16th Floor, Unitech
Cyber Park, Sector-39, Gurgaon – 122001, Haryana, India |
DIRECTORS
As on 31.12.2013
|
Name : |
S. Sandilya |
|
Designation : |
Chairman |
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Name : |
Mr. Siddhartha Lal |
|
Designation : |
Managing Director and Chief Executive Officer |
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Date of Birth/Age : |
40 Years |
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Qualification : |
PGDME, MSc. (Automotive Engg.) |
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Experience : |
17 Years |
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|
Name : |
R.L. Ravichandran |
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Designation : |
Executive Director |
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Date of Birth/Age : |
63 Years |
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Qualification : |
B.Com., PGDBM |
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Experience : |
43 Years |
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|
Name : |
Mrs. Priya Brat |
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Designation : |
Non-executive and Independent Director |
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Name : |
M.J. Subbaiah |
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Designation : |
Non-executive and Independent Director |
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Name : |
Mr. Prateek Jalan |
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Designation : |
Non-executive and Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Lalit Malik |
|
Designation : |
Chief Financial Officer and Compliance Officer |
|
Date of Birth/Age : |
46 Years |
|
Qualification : |
CA, MBA |
|
Experience : |
20 Years |
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|
Name : |
B. Govindarajan |
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Designation : |
Chief Operating Officer, Royal Enfield (a unit of Eicher Motors Limited) |
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|
Name : |
N. Krishnan |
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Designation : |
Senior Vice President-Product |
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Name : |
Shaji Koshy |
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Designation : |
Senior Vice President-Marketing |
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Name : |
K. Ramesh |
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Designation : |
Senior Vice President-Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of
Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
4330629 |
15.98 |
|
|
15143 |
0.06 |
|
|
10557258 |
38.97 |
|
|
10557258 |
38.97 |
|
|
14903030 |
55.01 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
14903030 |
55.01 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1022361 |
3.78 |
|
|
1828 |
0.01 |
|
|
173796 |
0.64 |
|
|
5436205 |
20.06 |
|
|
6636703 |
24.49 |
|
|
|
|
|
|
339442 |
1.29 |
|
|
|
|
|
|
1759274 |
9.43 |
|
|
380798 |
1.41 |
|
|
2275717 |
8.40 |
|
|
2275717 |
8.40 |
|
|
107 |
0.00 |
|
|
4755231 |
20.53 |
|
Total Public shareholding (B) |
11388681 |
45.01 |
|
Total (A)+(B) |
26291711 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
26291711 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing
of Reliable, Fuel-Efficient Commercial Vehicles of high quality and Modern
Technology, Engineering Components. |
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|
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|
Products : |
v Engineering Components |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
GENERAL INFORMATION
|
Suppliers : |
Not Divulged |
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Customers : |
Not Divulged |
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No. of Employees : |
1052 (Approximately) |
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Bankers : |
· HDFC Bank Limited · ICICI Bank Limited |
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Facilities : |
(Rs.
In Millions)
|
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
India |
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Subsidiary company : |
VE Commercial Vehicles Limited |
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100% subsidiary company of VECVL : |
·
Eicher Engineering Solutions, Inc., U.S.A. ·
V E C V Lanka (Private) Limited @ |
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|
|
|
100% subsidiary company of EES, Inc. : |
·
Eicher Engineering Solutions (Beijing) Co.
Limited * ·
Eicher Engineering Solutions (Shanghai) Co.
Limited # |
|
|
|
|
Significant influence of key management personnel : |
Eicher Goodearth Private Limited |
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|
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|
Joint venture company : |
Eicher Polaris Private Limited |
CAPITAL STRUCTURE
After 21.03.2014
Authorised Capital : Rs. 310.100 Millions
Issued, Subscribed & Paid-up Capital : 271.028
Millions
As on 31.12.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3,00,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 300.000 Millions |
|
1,01,000 |
Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 10.100 Millions |
|
|
Total |
|
Rs. 310.100
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,70,38,883 |
Equity Shares |
Rs. 10/- each |
Rs. 270.400
Millions |
|
|
|
|
|
The Company has
only one class of equity shares having a par value of Rs. 10 per share. Each holder
of equity shares is entitled to one vote per share held. The dividend proposed
by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amount, in proportion to their shareholding.
(i) Reconciliation of the shares outstanding at the beginning and at the
end of the reporting year
|
Particulars |
December 31,
2013 |
|
|
|
Nos. |
Rs. in Millions |
|
At the beginning of the year |
2,70,00,983 |
270.000 |
|
Issued during the year - ESOP |
37,900 |
0.040 |
|
Outstanding at the end of the year |
2,70,38,883 |
270.400 |
(ii) Details of shareholders holding more than 5% equity shares in the
Company
|
Particulars |
December 31,
2013 |
|
|
|
Nos. |
% holding in the class |
|
The Lal Family Trust |
40,56,482 |
15.00% |
|
Eicher Goodearth Trust |
32,71,723 |
12.10% |
|
Anita Lal |
30,23,167 |
11.18% |
|
The Simran Siddhartha Tara Benefit Trust |
27,43,346 |
10.15% |
|
Aktiebolaget Volvo (PUBL), Volvo, Sweden |
22,75,610 |
8.42% |
(iii) Aggregate
number of shares issued for consideration other than cash and shares bought back
during five years immediately preceding the reporting date:
|
Particulars |
Aggregate number
of shares December 31,
2013 |
|
Equity shares of
Rs. 10 each allotted as fully paid up for consideration other than in cash pursuant
to the Composite Scheme of Arrangement relating to merger of Residual Eicher
Goodearth Investment Limited into the Company which became effective on
November 12, 2009 from the appointed date i.e. January 1, 2009. |
1,40,32,764 |
|
Equity shares of
face value of Rs. 10 each fully paid up bought back and extinguished during
the year ended December 31, 2009 in accordance with Section 77A of the
Companies Act, 1956. |
14,08,969 |
(iv) Employee
stock option plan
a)
1,77,000 (1,77,000) options on September 30, 2006,
exercisable over a period of seven years after vesting on October 1, 2009 at an
exercise price of Rs.297 (including premium of Rs 287) per option, out of which
Nil (6,400) options are outstanding at year end. During the year, 6,400 (Nil)
equity shares were issued and allotted as fully paid up at an exercise price of
Rs. 297 (including premium of Rs. 287 each) per equity share.
b)
2,08,900 (2,08,900) options on October 22, 2007, exercisable
over a period of seven years after vesting on October 23, 2010 at an exercise
price of Rs. 462 (including premium of Rs. 452) per option, out of which 32,000
(63,500) options are outstanding at year end. During the year, 31,500 (8,400)
equity shares were issued and allotted as fully paid up at an exercise price of
Rs. 462 (including premium of Rs. 452 each) per equity share.
c)
40,000 (40,000) options on April 29, 2010,
exercisable over a period of seven years after vesting on April 29, 2011 at an exercise
price of Rs. 695 (including premium of Rs. 685) per option are outstanding as
at year end.
d)
15,400 (15,400) options on November 8, 2010,
exercisable over a period of seven years after vesting on November 8, 2013 at
an exercise price of Rs.1,411 (including premium of Rs. 1,401) per option are
outstanding as at year end.
e)
1,08,200 (1,32,200) options on May 6, 2011,
exercisable over a period of seven years after vesting on May 6, 2014 at an
exercise price of Rs. 1,162 (including premium of Rs. 1,152) per option are
outstanding as at year end. During the year, 24,000 (3,000) options were
forfeited.
f)
5,400 (12,600) options on February 11, 2012,
exercisable over a period of seven years after vesting on February 11, 2015 at
an exercise price of Rs. 1,770 (including premium of Rs. 1,760) per option are
outstanding as at year end. During the year, 7,200 (Nil) options were
forfeited.
g)
5,000 (Nil) options on December 16, 2013,
exercisable over a period of seven years after vesting on December 15, 2016 at
an exercise price of Rs. 4,915 (including premium of Rs. 4,905) per option are
outstanding as at year end.
h)
Each option entitles the holders thereof to apply
for and be allotted one equity share of the face value of Rs. 10 each.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
270.400 |
270.000 |
269.900 |
|
(b) Reserves & Surplus |
7943.000 |
6020.500 |
5130.500 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
8213.400 |
6290.500 |
5400.400 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
5.800 |
|
(b) Deferred tax liabilities (Net) |
126.300 |
62.600 |
39.200 |
|
(c)
Other long term liabilities |
37.800 |
32.300 |
27.300 |
|
(d)
long-term provisions |
104.800 |
92.600 |
80.900 |
|
Total
Non-current Liabilities (3) |
268.900 |
187.500 |
153.200 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
40.000 |
40.000 |
136.700 |
|
(b)
Trade payables |
3214.200 |
1775.000 |
1058.700 |
|
(c)
Other current liabilities |
2114.900 |
1328.200 |
595.100 |
|
(d)
Short-term provisions |
980.400 |
621.200 |
479.700 |
|
Total
Current Liabilities (4) |
6349.500 |
3764.400 |
2270.200 |
|
|
|
|
|
|
TOTAL |
14831.800 |
10242.400 |
7823.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2879.700 |
1338.300 |
1097.500 |
|
(ii)
Intangible Assets |
112.800 |
38.700 |
25.500 |
|
(iii)
Capital work-in-progress |
84.700 |
593.700 |
42.100 |
|
(iv) Intangible assets under development |
54.500 |
9.600 |
0.000 |
|
(b) Non-current
Investments |
309.400 |
109.400 |
54.400 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
827.200 |
613.000 |
348.100 |
|
(e)
Other Non-current assets |
70.900 |
61.800 |
57.600 |
|
Total
Non-Current Assets |
4339.200 |
2764.500 |
1625.200 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
8254.100 |
6384.500 |
5125.700 |
|
(b)
Inventories |
1438.400 |
754.100 |
452.700 |
|
(c)
Trade receivables |
121.300 |
62.000 |
41.000 |
|
(d)
Cash and cash equivalents |
187.100 |
35.000 |
29.800 |
|
(e)
Short-term loans and advances |
487.400 |
239.400 |
138.700 |
|
(f)
Other current assets |
4.300 |
2.900 |
410.700 |
|
Total
Current Assets |
10492.600 |
7477.900 |
6198.600 |
|
|
|
|
|
|
TOTAL |
14831.800 |
10242.400 |
7823.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations (Net) |
17024.700 |
10492.600 |
6714.500 |
|
|
|
Other Income |
801.000 |
457.800 |
767.800 |
|
|
|
TOTAL (A) |
17825.700 |
10950.400 |
7482.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
10792.300 |
6973.800 |
4598.400 |
|
|
|
Purchases of Stock-in-Trade |
125.600 |
0.000 |
0.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(319.600) |
(212.700) |
(144.000) |
|
|
|
Employees benefits expense |
1109.000 |
788.600 |
510.400 |
|
|
|
Other expenses |
2180.100 |
1488.600 |
948.800 |
|
|
|
TOTAL (B) |
13887.400 |
9038.300 |
5913.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3938.300 |
1912.100 |
1568.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2.700 |
2.600 |
20.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3935.600 |
1909.500 |
1548.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
304.100 |
171.500 |
130.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3631.500 |
1738.000 |
1418.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
845.300 |
290.400 |
172.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2786.200 |
1447.600 |
1245.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
4557.600 |
3816.200 |
3131.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
278.600 |
144.800 |
124.600 |
|
|
|
Proposed Dividend |
811.200 |
540.000 |
431.900 |
|
|
|
Corporate Dividend Tax |
68.600 |
21.400 |
3.900 |
|
|
BALANCE CARRIED
TO THE B/S |
6185.400 |
4557.600 |
3816.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Two wheelers |
666.300 |
531.800 |
434.000 |
|
|
|
Gears, components and spare parts |
22.600 |
17.100 |
19.000 |
|
|
|
Other automobile products |
1.200 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
690.100 |
548.900 |
453.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and spare parts |
516.600 |
104.800 |
82.900 |
|
|
|
Capital Goods |
30.600 |
51.900 |
20.100 |
|
|
|
Others |
11.300 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
558.500 |
156.700 |
103.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic
|
103.15 |
53.62 |
46.18 |
|
|
|
Diluted
|
102.58 |
53.31 |
46.00 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2014 |
|
Type |
1st
Quarter |
|
Net Sales |
6357.300 |
|
Total Expenditure |
4889.600 |
|
PBIDT (Excl OI) |
1467.700 |
|
Other Income |
848.600 |
|
Operating Profit |
2316.300 |
|
Interest |
10.500 |
|
Exceptional Items |
0.000 |
|
PBDT |
2305.800 |
|
Depreciation |
109.100 |
|
Profit Before Tax |
2196.700 |
|
Tax |
590.500 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
1606.200 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
1606.200 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
|
|
|
|
|
|
Net Profit Margin (PAT/Sales) |
(%) |
16.37 |
13.80 |
18.55 |
|
|
|
|
|
|
|
Operating Profit Margin (PBITD/Sales) |
(%) |
23.13 |
18.22 |
23.36 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.25 |
18.24 |
18.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.44 |
0.28 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.01 |
0.03 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.65 |
1.99 |
2.73 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
269.900 |
270.000 |
270.400 |
|
Reserves & Surplus |
5130.500 |
6020.500 |
7943.000 |
|
Net
worth |
5400.400 |
6290.500 |
8213.400 |
|
|
|
|
|
|
long-term borrowings |
5.800 |
0.000 |
0.000 |
|
Short term borrowings |
136.700 |
40.000 |
40.000 |
|
Total
borrowings |
142.500 |
40.000 |
40.000 |
|
Debt/Equity ratio |
0.026 |
0.006 |
0.005 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
6714.500 |
10492.600 |
17024.700 |
|
|
|
56.268 |
62.254 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
6714.500 |
10492.600 |
17024.700 |
|
Profit |
1245.500 |
1447.600 |
2786.200 |
|
|
18.55% |
13.80% |
16.37% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
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 |
OVERVIEW
Eicher Motors Limited is well poised
to succeed in today’s dynamic business environment. With a break-through Market
Business Model that combines 50+ years experience in the automotive industry
and best in class capital optimization, established corporate governance and
strong value set; the Eicher group is committed to build strong foundations
across all operational parameters and create a differentiated pipeline of new
products which will fuel growth in the years to come.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10221866 |
21/06/2011 * |
95,000,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE COURCE
CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B15295421 |
|
2 |
80038080 |
30/11/2005 |
30,000,000.00 |
CENTRAL BANK OF
INDIA |
INDUSTRIAL
FINANCE BRANCH, 48/49, MONTIETH ROAD, |
- |
|
3 |
90050274 |
23/07/2005 * |
240,000,000.00 |
HDFC BANK
LIMITED |
BRANCH OFFICE
KAILASH BUILDING, KASTURBA GANDHI MARG, NEW DELHI, DELHI - 110001, INDIA |
- |
|
4 |
80048326 |
22/09/1999 |
18,000,000.00 |
CENTURION BANK
LIMITED |
COMMERCE HOUSE, RACE
COURSE ROAD, INDORE, MADHYA |
- |
|
5 |
80048325 |
23/06/1997 * |
20,000,000.00 |
MADHYA PRADESH
FINANCIAL CORPORATION |
FINANCE HOUSE,
BOMBAY AGRA ROAD, INDORE, MADHYA PRADESH - 462001, INDIA |
- |
|
6 |
90046161 |
28/06/2005 * |
100,000,000.00 |
SMALL INDUSTRIES
DEVELOPMENT BANK OF INDIA |
VIDEOCON TOWER,
E1; RANI JHANSI ROAD, NEW DELHI, |
- |
|
7 |
80048310 |
20/06/1991 |
40,000,000.00 |
INDUSTRIAL
DEVELOPMENT BANK OF INDIA |
IDBI TOWER,CUFFE
PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
- |
|
8 |
80048304 |
16/07/1990 * |
13,000,000.00 |
INDUSTRIAL
DEVELOPMENT BANK OF INDIA |
NARIMAN BHAWAN,
227, VINAY K SHAH MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
- |
|
9 |
80048305 |
16/07/1990 * |
5,900,000.00 |
INDUSTRIAL
FINANCE CORPORATION OF INDIA |
BANK OF BARODA
BUILDING, 16, SANSAD MARG, P.B. NO. 363, NEW DELHI, DELHI - 110001,
INDIA |
- |
|
10 |
90045517 |
20/04/1989 |
60,400.00 |
INDIAN OVERSEAS
BANK |
NEHRU PLACE, NEW
DELHI, DELHI, INDIA |
- |
|
11 |
90045194 |
14/06/1985 * |
520,995.00 |
RAJASTHAN
FINANCIAL CORPN. |
SURYA NIWAS,
JAIPUR, RAJASTHAN, INDIA |
- |
|
12 |
90045120 |
14/06/1985 * |
520,995.00 |
RAJASTHAN
FINANCIAL CORPN. |
SURYA NIWAS,
JAIPUR, RAJASTHAN, INDIA |
- |
|
13 |
90045081 |
20/03/1984 * |
550,900.00 |
RAJASTHAN STATE
INDUSTRIAL DEVELOPMENT CORPN. LIMITED |
JAIPUR, JAIPUR,
RAJASTHAN, INDIA |
- |
* Date of charge modification
FINANCIAL RESULTS
The Company achieved an all time high top line growth during the
financial year 2013 with total revenue from operations (net) at Rs. 17024.700
Millions. The profit before depreciation and interest amounted to Rs. 3137.300
Millions, which is 18.4% of the total revenue. After accounting for interest
and dividend income of Rs. 801.00 Millions, interest expense of Rs. 2.700
Millions and depreciation of Rs. 304.100 Millions, profit before tax amounts to
Rs. 3631.500 Millions. Profit after tax amounts to Rs. 2786.200 Millions after
income tax provision of Rs. 845.300 Millions.
BUSINESS
PERFORMANCE
The Company’s Royal Enfield unit continues to grow significantly. It
sold 1,78,121 motorcycles in the year 2013, 57.0% more when compared to 2012
sales of 1,13,432. Of 178,121 motorcycles sold in 2013, 4256 were exported, a
growth of 20.5% over previous year.
Total revenue from operations (net) for the year was Rs. 17024.700
Millions, 62.2% growth over previous year (Rs. 10492.600 Millions). Net Sales
of spare parts and services increased to Rs. 1358.900 Millions in 2013 from Rs.
1001.400 Millions in the previous year, registering a growth of 35.70%.
Royal Enfield has also substantially expanded and upgraded its network
across the country. In 2013 it added 75 new dealerships taking the total
dealership network to 307. The Company plans to continue to expand its
distribution aggressively over the next few years, so that it is more
convenient for Royal Enfield customers to purchase a bike and have it repaired
and simultaneously to purchase accessories and apparel as well. The Company’s
focus is on providing a very unique, friendly and technically sound experience
at its dealerships so that the customer fully appreciates every contact with
the Company.
MARKET AND FUTURE
PROSPECTS
The Company continues to enlarge and enrich its product portfolio. On
11th September 2013, the much awaited Continental GT was launched in
Brooklands, UK. Prominent media representatives and personalities from the
automotive world were invited for the launch. Along with the motorcycle, a
Continental GT range of apparel and accessories was also launched. The
international media and distributor/dealer community were extremely impressed
by the motorcycle – its ride and handling, fit and finish and how true the
product is to its intent – café racing. This motorcycle has set the tempo for
meaningful presence for Royal Enfield in the international markets. The
Continental GT was launched in India in October 2013 along with accessories.
The Company is extremely satisfied with the customer response to the
motorcycle. Prior to the Continental GT, the Bullet 500 was launched in India
in early 2013 and received a heartening response.
The Company has set its goals to be a significant player in the mid-size
motorcycle market. It calls for investments in manufacturing capacity, supply
chain, product platforms and distribution. The Company will invest in all these
areas to seize the significant opportunities for growth in that it believes
lies in India and international markets.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENT
In 2013, the two wheeler industry’s growth rate lowered to 4%, after
having grown 5.2 % in 2012. Within the two wheeler industry, the motorcycle
industry growth was 2.0 % which is same compared to 2012. In 2013, the scooter
market grew 15% over 2012.
Within the motorcycle segments, the growth rate slowed in the economy
segment. The executive segment degrew in volume terms, even as the rate of
degrowth improved in 2013 when compared to 2012. The premium segment, which the
company leads with a 90% market share continues to grow.
The trend of leisure motorcycling and day to day commuting is evolving across
the country, with its adoption by a growing customer population who are
aspirational and have increased brand consciousness. This provides the premium
motorcycle segment a significant potential for future growth.
The Company’s Royal Enfield brand has an extremely rich global heritage
of practical leisure motorcycling of over a hundred years. Royal Enfield is a
cult brand globally and has pioneered the leisure motorcycling culture in
India. The brand’s positioning and related marketing activities have both
delighted the current customers and opened up avenues for attracting new
customers.
Royal Enfield continuously engages its customers by providing a pure
motorcycling experience through its marquee rides that are organized throughout
the year. These rides see participation from a cross section of its customers
and enthusiasts who take time off from their regular routines to ride out on
their Royal Enfield’s to some of the most scenic locales within and outside the
country. Riding is also promoted actively at the dealership levels.
BUSINESS
PERFORMANCE
The Company’s Royal Enfield unit continues to grow strongly. It sold
1,78,121 motorcycles in the year 2013, 57.0% more when compared to 2012 sales
of 1,13,432. Of 178,121 motorcycles sold in 2013, 4256 were exported, a growth
of 20.5% over previous year.
Total revenue from operations (net) for the year was Rs. 17024.700
Millions, 62.2% growth over previous year (Rs. 10492.600 Millions).
Net Sales of spare parts and services grew to Rs. 1358.900 Millions in
2013 from Rs.1001.400 Millions in the previous year, registering a growth of
35.70%.
Royal Enfield has also substantially expanded and upgraded its network
across the country. In 2013 it added 75 new dealerships taking the total
dealership network to 307. The Company plans to continue to expand its
distribution aggressively over the next few years, so that it is more
convenient for Royal Enfield customers to purchase a bike and have it repaired
and increasingly so- to purchase accessories and apparel as well. The Company’s
focus is on providing a very unique, friendly and technically adept experience
at its dealerships so that the customer truly appreciates every contact with
the Company.
UNAUDITED FINANCIAL RESULTS
(STAND-ALONE) FOR THE QUARTER ENDED SEPTEMBER 30, 2014
(RS
IN MILLIONS)
|
|
Particulars |
Quarter Ended 30.09.2014 |
Quarter Ended 30.06.2014 |
Nine Months Ended 30.09.2014 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
1 |
Income
from operations |
|
|
|
|
|
(a)
Gross sales |
24032.600 |
23718.800 |
68353.400 |
|
|
(b)
Less : Excise duty |
1520.100 |
1502.800 |
4625.800 |
|
|
(c)
Net sales |
22512.500 |
22216.000 |
63727.600 |
|
|
(d)
Other operating income |
237.000 |
237.700 |
717.800 |
|
|
Total
income from operations (net) |
22749.500 |
22453.700 |
64445.400 |
|
2 |
Expenses |
|
|
|
|
|
(a)
Cost of materials consumed |
12640.100 |
13449.200 |
37788.300 |
|
|
(b)
Purchase
of stock-in-trade |
2764.100 |
2045.100 |
6631.100 |
|
|
(c)
Changes in inventories of finished goods and work-in-progress |
(461.300) |
(520.600) |
(1691.200) |
|
|
(d)
Employee benefits expenses |
1693.600) |
1687.600 |
4925.300 |
|
|
(e)
Depreciation and amortisation expenses |
563.500 |
557.100 |
1598.000 |
|
|
(f)
Other expenses |
3060.500 |
2947.400 |
8674.800 |
|
|
Total
expenses |
20260.500 |
20165.800 |
57926.300 |
|
3 |
Profit
from operations before other income and finance costs (1-2) |
24890.000 |
2287.900 |
6519.100 |
|
4. |
Other
income |
192.100 |
178.100 |
923.600 |
|
5 |
Profit
before finance costs (3+4) |
2681.100 |
2466.000 |
7442.700 |
|
6 |
Finance
costs |
9.200 |
10.600 |
78.300 |
|
7 |
Profit
before tax (5-6) |
2671.900 |
2455.400 |
7364.400 |
|
8 |
Tax
expense (including deferred tax and MAT credit entitlement) |
811.400 |
670.000 |
2156.900 |
|
9 |
Net
Profit after tax (7-8) |
1860.500 |
1785.400 |
5207.500 |
|
10. |
Minority interest |
210.200 |
211.000 |
591.600 |
|
|
|
|
|
|
|
11. |
Net
Profit after tax and minority interest (9-10) |
1650.300 |
1574.400 |
4615.900 |
|
|
|
|
|
|
|
12 |
Paid-up
equity share capital (Face value of each equity share – Rs.10 ) |
271.000 |
270.900 |
271.000 |
|
13. |
Earnings
per share (of Rs.10 each) (not annualised) in Rs. |
|
|
|
|
|
(a)
Basic |
60.90 |
58.14 |
170.49 |
|
|
(b)
Diluted |
60.62 |
57.88 |
169.71 |
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
1. |
Public
shareholding |
|
|
|
|
|
-
Number of shares |
12199753 |
12190453 |
12199753 |
|
|
-
Percentage of shareholding |
45.01% |
44.99% |
45.01% |
|
2. |
Promoters
and Promoter Group Shareholding a) Pledged / encumbered |
|
|
|
|
|
-
Number of shares |
Nil |
Nil |
Nil |
|
|
-
As a percentage of the total shareholding of the promoter and promoter group |
Nil |
Nil |
Nil |
|
|
-
As a percentage of the total share capital of the Company |
Nil |
Nil |
Nil |
|
|
b)
Non - encumbered |
|
|
|
|
|
-
Number of shares |
14903030 |
14903030 |
14903030 |
|
|
-
As a percentage of the total shareholding of the promoter and promoter group |
100% |
100% |
100% |
|
|
-
As a percentage of the total share capital of the Company |
54.99% |
55.01% |
54.99% |
|
Particulars |
Quarter ended |
|
|
30.09.2014 |
||
|
B |
INVESTOR
COMPLAINTS |
|
|
|
Pending
at the beginning of the quarter |
Nil |
|
|
Received
during the quarter |
89 |
|
|
Disposed
of during the quarter |
89 |
|
|
Remaining
unresolved at the end of the quarter |
Nil |
NOTES:
- As the Company’s, its subsidiaries' and
joint venture business' activities falls within a single primary business
segment viz. “Automobile products and related components” and is a single
geographical segment, the disclosure requirements of Accounting Standard –
17 “Segment Reporting” notified under the Companies (Accounting Standards)
Rules, 2006 are not applicable.
- The unaudited consolidated financial
statements have been prepared by the Company in accordance with the
requirements of Accounting Standard - 21, "Consolidated Financial
Statements", notified under the Companies (Accounting Standards)
Rules, 2006 and on the basis of the separate unaudited interim financial
statements of the Company, its subsidiaries viz. VE Commercial Vehicles
Limited (VECVL, 54.4% subsidiary of the Company), V E C V Lanka (Private)
Limited (VECV Lanka) and Eicher Engineering Solutions, Inc., U.S.A. (EES
Inc.) (100% subsidiaries of VECVL), Eicher Engineering Solutions (Beijing)
Co., Ltd. and Eicher Engineering Solutions (Shanghai) Co., Ltd. (100%
subsidiaries of EES Inc.) and 50:50 jointly controlled entity viz. Eicher
Polaris Private Limited (EPPL). The unaudited financial results of EES
Inc. and its 100% subsidiaries, VECV Lanka and EPPL have been consolidated
on the basis of unreviewed financial statements prepared by the management
of EES Inc., VECV Lanka and EPPL. Rs. in lacs)
- During the current quarter, 9,300 equity
shares were issued and allotted as fully paid up at an exercise price of
Rs.1162 (including premium of Rs.1152 each) per equity share under Eicher
Employee Stock Option Scheme.
- The previous periods'/year's figures
have been regrouped/recast wherever necessary to conform to current
periods' presentation.
- The above results have been reviewed
and recommended by the Audit Committee and approved by the Board of
Directors in their meetings held on November 12, 2014.
Limited Review:
The limited review, as required under Clause 41 of the listing agreement
has been completed by the Statutory Auditors.
The limited review report for the quarter and nine months ended ended
September 30, 2014 does not have any impact on the above results except of
matter explained in note 2 above.
CONTINGENT
LIABILITIES:
|
Particulars |
31.12.2013 (Rs.
In Millions) |
31.12.2012 (Rs.
In Millions) |
|
a) In respect of demands contested by the Company: |
|
|
|
- Excise duty matters |
549.800 |
549.900 |
|
- Sales tax matters |
68.700 |
104.300 |
|
- Service tax matters |
4.000 |
7.700 |
|
- Income tax matters |
67.900 |
88.000 |
|
b) Claims against the Company not acknowledged as debts |
55.100 |
50.000 |
|
|
|
|
|
Total |
745.500 |
799.900 |
|
All the above
matters are subject to legal proceedings in the ordinary course of business. The
legal proceeding when ultimately concluded will not, in the opinion of
management, have a material effect on the result of operations or the
financial position of the Company. |
||
FIXED ASSETS:
Tangible assets
· Land
· Buildings
· Plant and equipment
· Furniture and fixtures
· Office equipments
· Vehicles
Intangible assets
· Product designs, prototypes etc.
· Computer softwares
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.86 |
|
|
1 |
Rs.97.23 |
|
Euro |
1 |
Rs.77.21 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
BVA |
|
|
|
|
Report Prepared
by : |
ANU |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
65 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.