MIRA
INFORM REPORT
|
Report Date : |
11.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHREE RENUKA SUGARS LIMITED |
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Registered
Office : |
BC 105, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
25.10.1995 |
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Com. Reg. No.: |
08-019046 |
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Capital
Investment / Paid-up Capital : |
Rs. 671.320 Millions |
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CIN No.: [Company Identification
No.] |
L01542KA1995PLC019046 |
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|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Sugar, Ethnol and Power. |
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|
No. of Employees
: |
2247 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 53430000 |
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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 one of the largest private sector sugar manufacturers in
India. It is an established company having good track record. The company has incurred a loss during 2014. However general financial
position of the company is sound. Trade relations are reported as fair. Business is active. Payments
terms are reported to be regular and as per commitment. The company can be considered normal 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
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization policies.
A firm called Ciane Analytics studied returns from assets including
equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate
outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loans A |
|
Rating Explanation |
Adequate degree of safety. It carry low credit risk. |
|
Date |
December 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non fund based limits A1 |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
|
Date |
December 2013 |
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 co – operative
Tel No.: 91-22-24977744
LOCATIONS
|
Registered Office : |
BC 105, |
|
Tel. No.: |
91-831-2404000 / 2404961 |
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Fax No.: |
91-831-2469891 |
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E-Mail : |
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Website : |
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Corporate Office : |
7th Floor, Devchand House, Shiv Sagar Estate, Dr. Annie
Besant Road, Worli, Mumbai – 400018, Maharashtra, India |
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Tel. No.: |
91-22-24977744 / 4001 / 1400 |
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Fax No.: |
91-22-24977747 |
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E-Mail : |
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Factory : |
Unit I - Munoli Sugar,
Distillery, Co-generation and Sugar
Refinery at, Gavase,
Taluka Saundatti, District:
Unit II - Athani Sugar,
Distillery, Co-Generation and Sugar
Refinery Taluka
Athani District
Unit III - Havalga Sugar,
Distillery and Co-Generation Taluka:
Afzalpur, Dist:
Unit VI - Raibag (Leased) Sugar Taluka:
Raibag, Dist:
Unit V - Pathri Sugar Deonandra,
Taluka: Pathri Dist:
Parbhani, Unit VI - Gokak Sugar
and Co-generation Kolavi,
Taluka: Gokak Dist:
Unit VII - Ajinkyatara
(BOOT) Co-Generation Shahunagar, Shendre Tal / Dist: Satara, Maharashtra Unit VIII - Panchaganga (Leased, BOOT) Sugar & Co-Generation Ganganagar, Ichalkaranji, Taluka: Hatkanangle Dist: Kolhapur, Maharashtra\ Unit IX -
Khopoli Ethanol Donvat,
Taluka: Khalapur, Unit R1 - Haldia Sugar
Refinery Kolkata,
Unit R2 - Kandla Sugar
Refinery Kandla,
Gujarat PLANT LOCATIONS
(BRAZIL) Renuka do Brasil
S/A Unit I - Usina Madhu Promissao, Sao Paulo Brazil Unit II - Usina Revati Brejo Alegre, Sao Paulo Brazil Renuka Vale do
Ivai S/A Unit I - Usina Sao Pedro do Ivai Sao Pedro do Ivai, Parana Brazil Unit II - Usina Cambui São Miguel do Cambuí, Parana Brazil |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mrs.
Vidya Murkumbi |
|
Designation : |
Executive
Chairperson |
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|
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|
Name : |
Mr.
Narendra Murkumbi |
|
Designation : |
Vice
Chairman and Managing Director |
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|
Name : |
Mr.
Vijendra Singh |
|
Designation : |
Executive Director |
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|
Name : |
Mr.
Sanjay Asher |
|
Designation : |
Independent
Director and Head - Audit Committee |
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|
|
|
Name : |
Mr.
S. K. Tuteja |
|
Designation : |
Independent
Director |
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|
Name : |
Mr.
Hrishikesh Parandekar |
|
Designation : |
Independent
Director |
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|
|
|
Name : |
Mr.
Robert Taylor |
|
Designation : |
Independent
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2014
|
Category of
Shareholder |
No. of
Shareholders |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
21917565 |
2.36 |
|
|
234336295 |
25.23 |
|
|
256253860 |
27.59 |
|
|
|
|
|
|
1237732 |
0.13 |
|
|
1237732 |
0.13 |
|
Total shareholding of Promoter and Promoter Group (A) |
257491592 |
27.72 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
33006229 |
3.55 |
|
|
21233015 |
2.29 |
|
|
94810988 |
10.21 |
|
|
149050232 |
16.05 |
|
|
|
|
|
|
41793955 |
4.50 |
|
|
|
|
|
|
156336005 |
16.83 |
|
|
25646010 |
2.76 |
|
|
298493448 |
32.14 |
|
|
1125450 |
0.12 |
|
|
3265049 |
0.35 |
|
|
23247574 |
2.50 |
|
|
13363783 |
1.44 |
|
|
257491592 |
27.72 |
|
|
522269418 |
56.23 |
|
Total Public shareholding (B) |
671319650 |
72.28 |
|
Total (A)+(B) |
928811242 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
0 |
0.00 |
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
928811242 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sugar, Ethnol and Power. |
GENERAL INFORMATION
|
No. of Employees : |
2247 (Approximately) |
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Bankers : |
·
Axis Bank Limited ·
ICICI Bank Limited ·
IDBI Bank Limited. ·
IndusInd Bank Limited. ·
ING Vysya Bank Limited. ·
Royal Bank of Scotland N.V. ·
State Bank of India ·
Standard Chartered Bank ·
The Ratnakar Bank Limited. ·
Yes Bank Limited |
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Facilities : |
NOTE: Nature of
Security Long Term Borrowing a)
Non-Convertible Debentures: i) 600 Redeemable Non-Convertible Debentures (11.95%) of Rs.1,000,000 each, secured by first pari-passu charge on movable and immovable assets of the company and are redeemable at par on August 03, 2014 (ii) And (iii) 500 (Previous year 4,000) Redeemable Non-Convertible Debentures of Rs.1,000,000 each , secured by first pari-passu charge on movable and immovable assets of the company and are redeemable in equal installments at par . (iv) 1,500 Redeemable Non-Convertible Debentures of Rs.1,000,000 each, secured by first pari-passu charge on movable and immovable assets of the company and are redeemable at par on April 02, 2017. (v) 1,000 Redeemable Non-Convertible Debentures of Rs.1,000,000 each , secured by first pari-passu charge on movable and immovable assets of the company and are redeemable at par on Dec 24, 2017. b) Term-Loans: Rupee Term Loan availed from Indian Renewable Energy Development Agency Ltd. (IREDA) are secured by first and exclusive charge on the movable and immovable assets of the company's Co-Generation units located at Panchganga and Ajinkyatara. Term Loan from Other Banks and financial Institutions are secured by first pari-passu charge on movable and immovable assets of the company. From Others: SDF Loans amounting to Rs. 1,008.02 Millions @ 4% p.a., are secured by exclusive second charge on movable and immovable assets of the company. SDF Loan amounting to Rs. 312.82 Millions @ 7% p.a., is secured by first pari passu charge on movable and immovable assets of the company. Interest Accrued but not due represents interest on certain long-term borrowings, where the payment of interest has also been deferred for a period of time and is therefore considered to be in the nature of borrowings and included as a part of secured loans under Long term borrowings. Short Term
Borrowing Nature
of Security: Working Capital facilities from banks are secured by hypothecation of stocks , book debts and other current assets and third charge on movable and immovable fixed assets of the company . |
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Banking
Relations : |
-- |
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|
Auditors : |
|
|
Name : |
M/s. Ashok Kumar, Prabhashankar and Company Chartered Accountant |
|
Address : |
Bangalore, Karnataka, India |
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|
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Cost auditors : |
|
|
Name : |
B. M. Sharma and Company Cost Accountants |
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Subsidiaries : |
·
Renuka Commodities DMCC, Dubai
(UAE) ·
Parana Global Trading (FZE),
Sharjah (UAE) ·
Shree Renuka Agri Ventures Limited ·
KBK Chem-Engineering Private
Limited ·
Gokak Sugars Limited ·
Nandur Sugars Limited (Ceased to be
subsidiary w.e.f. from 09th Dec,2013) ·
Shree Renuka Global Ventures
Limited, Mauritius ·
Lanka Sugar Refinery Company
(Private) Limited, Sri lanka ·
Monica Trading Private Limited (
formerly Monica Realators and Investments Private Limited) ·
Shree Renuka East Africa
Agriventures PLC, Ethiopia ·
Shree Renuka Tunaport Private
Limited |
|
|
|
|
Associates : |
·
Khandepar Investments Private
Limited ·
Vantamuri Trading And Investments
Limited ·
Murkumbi Investments Private
Limited ·
Shree Renuka Energy Limited ·
Renuka Energy Resource Holdings
(FZE), Sharjah ·
Damodar Resource Holdings (FZE),
Sharjah ·
Ravindra Energy Limited ·
Agri Venture Trading and Investment
Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1600000000 |
Equity Shares |
Rs.1/- each |
Rs. 1600.000 Millions |
|
25000000 |
Preference shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
|
Total
|
|
Rs.
1850.000 Millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
671319650 |
Equity Shares |
Rs.1/- each |
Rs. 671.320
Millions |
|
|
|
|
|
RECONCILIATION OF
NUMBER OF SHARES AND EQUITY SHARES OUTSTANDING:
|
Particulars |
As at 31st March, 2014 |
As at 31st March, 2013 |
|
|
|
|
|
At the beginning of the year |
671,319,650 |
671,319,650 |
|
Addition/deletion during the year |
-- |
-- |
|
At the end of the
year |
671,319,650 |
671,319,650 |
The Company has only one class of equity shares. The company declares and pays dividend in Indian rupees. The holders of equity shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share.
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 dues. The distribution will be in proportion to the number of equity shares held by the shareholders.
DETAILS OF
SHAREHOLDERS HOLDING MORE THAN 5% SHARES IN THE EQUITY SHARE CAPITAL OF THE
COMPANY:
|
Name of the Shareholder |
As at 31st March, 2014 |
|
|
No. of Shares |
% to Equity |
|
|
Murkumbi Investments Private Limited |
121,414,000 |
18.09 |
|
Khandepar Investments Private Limited |
75,400,000 |
11.23 |
|
Agri Venture Trading And Investment Private Limited |
37,522,295 |
5.59 |
The aggregate number of Equity Shares allotted as fully paid up by way of Bonus Shares -334,900,000 equity shares in the ratio of 1:1 were issued on March 18, 2010.
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 |
671.320 |
671.320 |
671.320 |
|
(b) Reserves & Surplus |
12685.580 |
17258.640 |
17133.720 |
|
(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) |
13356.900 |
17929.960 |
17805.040 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
11867.610 |
11957.660 |
17559.840 |
|
(b) Deferred tax liabilities (Net) |
710.100 |
2430.870 |
2203.880 |
|
(c) Other long
term liabilities |
0.000 |
6.710 |
329.640 |
|
(d) long-term
provisions |
32.630 |
24.940 |
26.880 |
|
Total Non-current
Liabilities (3) |
12610.340 |
14420.180 |
20120.240 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
21889.440 |
7908.540 |
22298.790 |
|
(b)
Trade payables |
10864.210 |
30860.240 |
7805.250 |
|
(c) Other
current liabilities |
7847.590 |
8309.100 |
7389.530 |
|
(d) Short-term
provisions |
2.670 |
406.140 |
1.360 |
|
Total Current
Liabilities (4) |
40603.910 |
47484.020 |
37494.930 |
|
|
|
|
|
|
TOTAL |
66571.150 |
79834.160 |
75420.210 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
26895.790 |
27273.620 |
26783.550 |
|
(ii)
Intangible Assets |
62.590 |
77.330 |
46.970 |
|
(iii)
Capital work-in-progress |
243.700 |
270.410 |
1204.830 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
20139.590 |
20128.870 |
20134.900 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3873.550 |
3971.470 |
3394.730 |
|
(e) Other
Non-current assets |
2.640 |
12.080 |
36.760 |
|
Total Non-Current
Assets |
51217.860 |
51733.780 |
51601.740 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
10033.930 |
20588.380 |
17191.610 |
|
(c)
Trade receivables |
2481.280 |
1735.050 |
1765.120 |
|
(d) Cash
and cash equivalents |
709.690 |
914.720 |
103.910 |
|
(e)
Short-term loans and advances |
2115.430 |
4837.550 |
4732.630 |
|
(f)
Other current assets |
12.960 |
24.680 |
25.200 |
|
Total
Current Assets |
15353.290 |
28100.380 |
23818.470 |
|
|
|
|
|
|
TOTAL |
66571.150 |
79834.160 |
75420.210 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
65223.810 |
63954.300 |
63620.990 |
|
|
|
Other Income |
547.310 |
150.000 |
11.310 |
|
|
|
TOTAL (A) |
65771.120 |
64104.300 |
63632.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
43969.550 |
44384.540 |
34989.430 |
|
|
|
Purchases of Stock-in-Trade |
6599.340 |
10351.350 |
17646.560 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
8268.020 |
(1633.010) |
(3881.370) |
|
|
|
Employees benefits expense |
1218.930 |
1290.370 |
1444.350 |
|
|
|
Other expenses |
3768.070 |
3612.410 |
6036.380 |
|
|
|
Extraordinary items |
3316.840 |
77.120 |
893.920 |
|
|
|
TOTAL (B) |
67140.750 |
58082.780 |
57129.270 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(1369.630) |
6021.520 |
6503.030 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
3182.040 |
3670.980 |
3698.720 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(4551.670) |
2350.540 |
2804.310 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
1656.360 |
1592.020 |
1454.730 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(6208.030) |
758.520 |
1349.580 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(1547.140) |
240.100 |
509.060 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(4660.890) |
518.420 |
840.520 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2442.630 |
2841.210 |
3289.230 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
52.000 |
85.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
(611.000) |
473.000 |
423.330 |
|
|
|
Proposed Dividend on Equity Shares |
0.000 |
335.000 |
0.000 |
|
|
|
Dividend Tax |
(57.000) |
57.000 |
108.900 |
|
|
BALANCE CARRIED TO
THE B/S |
1550.26 |
2442.630 |
2841.210 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
31105.920 |
36308.850 |
34125.640 |
|
|
TOTAL EARNINGS |
31105.920 |
36308.850 |
34125.640 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
9575.210 |
23800.920 |
9656.210 |
|
|
|
Cost of traded goods |
5745.52 |
5319.920 |
12465.290 |
|
|
|
Components, stores and spares |
121.33 |
72.610 |
190.750 |
|
|
|
Capital Goods |
0.000 |
0.000 |
365.540 |
|
|
TOTAL IMPORTS |
15442.06 |
29193.45 |
22677.79 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(6.94) |
0.77 |
6.27 |
|
QUARTERLY /
SUMMARISED RESULTS
|
Particulars (Rs.
Millions) |
|
|
|
Jun 2014 |
|
Audited / UnAudited |
|
|
|
UnAudited |
|
Net Sales |
|
|
|
11578.000 |
|
Total Expenditure |
|
|
|
11408.000 |
|
PBIDT (Excl OI) |
|
|
|
170.000 |
|
Other Income |
|
|
|
23.000 |
|
Operating Profit |
|
|
|
193.000 |
|
Interest |
|
|
|
844.000 |
|
Exceptional Items |
|
|
|
(186.000) |
|
PBDT |
|
|
|
(837.000) |
|
Depreciation |
|
|
|
384.000 |
|
Profit Before Tax |
|
|
|
(1221.000) |
|
Tax |
|
|
|
(415.000) |
|
Provisions and contingencies |
|
|
|
0.000 |
|
Profit After Tax |
|
|
|
(806.000) |
|
Extraordinary Items |
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
|
Net Profit |
|
|
|
(806.000) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(7.09) |
0.81 |
1.32 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(9.52) |
1.19 |
2.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(13.44) |
1.28 |
2.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.46) |
0.04 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.53 |
1.11 |
2.24 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.38 |
0.59 |
0.63 |
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 |
671.320 |
671.320 |
671.320 |
|
Reserves & Surplus |
17133.720 |
17258.640 |
12685.580 |
|
Net worth |
17805.040 |
17929.960 |
13356.900 |
|
|
|
|
|
|
long-term borrowings |
17559.840 |
11957.660 |
11867.610 |
|
Short term borrowings |
22298.790 |
7908.540 |
21889.440 |
|
Total borrowings |
39858.630 |
19866.200 |
33757.050 |
|
Debt/Equity ratio |
2.239 |
1.108 |
2.527 |
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 |
63620.990 |
63954.300 |
65223.810 |
|
|
|
0.524 |
1.985 |
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 |
63620.990 |
63954.300 |
65223.810 |
|
Profit |
840.520 |
518.420 |
(4660.890) |
|
|
1.32% |
0.81% |
(7.15%) |
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
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 |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN:
|
Particulars |
31.03.2014 [Rs.
in Millions] |
31.03.2013 [Rs.
in Millions] |
|
Long Term
Borrowing |
|
|
|
Sugar Development Fund |
|
|
|
Deferred Purchase Tax |
16.080 |
68.210 |
|
|
|
|
|
Short Term
Borrowing |
|
|
|
Working Capital
From Banks |
|
|
|
Rupee Borrowings |
226.450 |
0.000 |
|
Foreign Currency Borrowings |
1197.800 |
0.000 |
|
Commercial Papers |
0.000 |
500.00 |
|
Total |
1440.330 |
568.210 |
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10502589 |
17/05/2014 |
460,000,000.00 |
AXIS BANK LIMITED |
GRD FLR, AXIS HOUSE, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA |
C06411714 |
|
2 |
10504212 |
04/04/2014 |
500,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, N.G.N. VAIDYA MARG, BANK STREE T, HORNIMAN CIRCLE, MUMBAI - 400001, MAHARASHTRA, INDIA |
C07336258 |
|
3 |
10490412 |
22/03/2014 |
500,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA |
C03842812 |
|
4 |
10484646 |
25/03/2014 * |
312,820,000.00 |
GOVERNMENT OF INDIA |
MINISTRY OF CONSUMER AFFAIRS, DEPT OF FOOD AND PUBLIC DISTRIBUTION KRISHI BHAVAN, NEW DELHI - 110003, DELHI , INDIA |
C00593269 |
|
5 |
10451583 |
14/03/2014 * |
1,800,000,000.00 |
STATE BANK OF INDIA |
STATE BANK OF INDIA, BANK STREET, HORNIMAN CIRCLE,, MUMBAI - 400001, MAHARASHTRA, INDIA |
C02774750 |
|
6 |
10447653 |
20/05/2014 * |
1,650,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA |
C09105149 |
|
7 |
10503225 |
24/07/2013 |
41,791,048,200.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG,, BALLARD ESTATE,, MUMBAI - 400001, MAHARASHTRA, INDIA |
B93216448 |
|
8 |
10431512 |
20/09/2013 * |
1,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG,, BALLARD ESTATE,, MUMBAI - 400001, MAHARASHTRA, INDIA |
B93943512 |
|
9 |
10365485 |
30/10/2012 * |
1,500,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG,, BALLARD ESTATE,, MUMBAI - 400001, MAHARASHTRA, INDIA |
B60982030 |
|
10 |
10364333 |
27/09/2013 * |
656,300,000.00 |
INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED |
INDIA HABITAT CENTRE1ST FLOOR EAST COURT CORE, 4A LODHI ROAD, NEW DELHI - 110003, DELHI, INDIA |
B86239704 |
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL SUGAR INDUSTRY
INDUSTRY FACTS
· Sugar is one of the world’s major agro-based industries and is also one of the most actively traded soft commodities on the exchanges
· Brazil, India, the EU, China and Thailand rank amongst the top global producers of sugar
· India, the EU, China, Brazil and U.S. are the major sugar consuming countries
· More than 80% of sugar is produced from sugarcane, while the balance is from sugar beet
· Brazil and India are the largest sugar producers from sugarcane and EU and U.S. are the major sugar producers from beet
GLOBAL SUGAR PRICE
TREND
The build-up in global sugar inventories for four consecutive years and depreciation of currencies of major sugar producing countries against USD have impacted prices, which have remained weak for a large part since February 2011, when the benchmark raw sugar price peaked at $35 cents/lb. Average raw sugar prices in fiscal 2014 stood at $16.95 cents/lb compared to $20.11 cents/lb in fiscal 2013. At present, prices are ruling between $16-$18 cents/lb. for the benchmark contract. Sugar prices did see some recovery from the lows of around $15 cents/lb. witnessed in January 2014, as prospects of a weaker crop in Brazil and India raised hopes of the industry dynamics finally turning to a sugar deficit year from a four-year surplus.
BRAZILIAN SUGAR
INDUSTRY
INDUSTRY FACTS
• Largest producer and exporter and amongst the lowest cost producers of sugar in the world
• Sugarcane production is largely concentrated in two regions i.e. Centre-South and North-Northeast, wherein Centre-South accounts for over 91% of the total sugarcane production
• Large cane fields facilitate the use of high level of mechanization for agricultural operations
• Second largest producer of ethanol after USA
PRODUCTION AND
OUTLOOK
Sugarcane harvesting in the Centre-South region improved by 12% to 597 Million MT in 2013/14 compared to 533 Million MT in 2012/13, mainly due to increase in acreage and better yields. While yields improved by about 7% to 79.8 MT/hectare, acreage increased by around 4.8%. Total sugarcane processing could have been higher by an additional 3.7 Million MT, which remained un-harvested and will be carried forward to 2014/15. Despite higher sugarcane availability, sugar production rose by only 0.6% to 34.3 Million MT, as a higher proportion of sugarcane was utilised for producing ethanol. Weak sugar prices, coupled with rise in ethanol demand due to an increase
in mandatory blending from 20% to 25% w.e.f. May 2013 and increase in gasoline prices by state firms, led to mills diverting 54.8% of total sugarcane towards ethanol in 2013/14, compared to 50.5% in 2012/13. Accordingly, ethanol production surged by 20% to 25.6 Billion Litres. Total sugar production in Brazil, including the North-Northeastern region, declined by 1.4% to 37.7 Million MT, whereas ethanol production rose by 18.5% to 27.5 Billion Litres respectively. As per latest estimates by Brazilian sugarcane industry association (UNICA), sugarcane availability in the Centre-South region is expected to decline by 8.6% to 546 Million MT in 2014/15. The drop is mainly due to reduction in agricultural yields as major cane growing regions have been severely impacted by the drought, which stretched from end of 2013 to early 2014.
INDIAN SUGAR INDUSTRY
INDUSTRY FACTS
· Second largest producer and the largest consumer of sugar in the world
· Key developments in the sector impact global demand-supply dynamics and prices
· Second largest agro processing industry after cotton, involving over 60 Million farmers and dependents
· Sugarcane is cultivated in over 5 Million hectares in 2013/14, with Uttar Pradesh and Maharashtra accounting for a combined 63% of the total acreage
· Unique industry structure with large number of stakeholders, including millers, farmers, Government, industrial and retail consumers
· 65% of sugar consumed by bulk consumers
·
Small average farm size of around 1-2 hectares
COMPANY OVERVIEW
Shree Renuka Sugars is a global agribusiness and bio-energy company. The Company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refiners in the world. Shree Renuka Sugars operates in four segments: Sugar, Trading, Power and Ethanol.
Sugar: The Company operates eleven mills globally with a total crushing capacity of 22 million tonnes per annum (MTPA) or 101,520 tonnes crushed per day (TCD). The Company operates seven sugar mills and two port-based sugar refineries in India with a total crushing capacity of 8.4 MTPA and total refining capacity of 2.3 MTPA (including 0.6 MTPA sugar mills off-season refining). The Company also has significant presence in Centre-South Brazil, through acquisition of Renuka Vale do Ivai (100% owned) and Renuka do Brasil (59.4% owned). The combined crushing capacity of the Brazilian subsidiary companies is 13.6 MTPA.
Trading: The Company operates a trading hub in Dubai to capitalize on trade opportunities in the Asian region.
Power: Shree Renuka Sugars produces power from bagasse (a sugarcane byproduct) for captive consumption and sale to the state grids in India and Brazil.
Ethanol: Shree Renuka Sugars manufactures fuel grade ethanol that can be blended with petrol. Global distillery capacity is 4,160 Kilo Litres per day (KLPD) with Indian distillery capacity at 930 KLPD (630 KLPD from molasses to ethanol and 300 KLPD from rectified spirit to ethanol) and Brazil distillery capacity at 3,230 KLPD.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2014
|
Sr. No. |
Particulars |
Rs in Millions |
||
|
Quarter ended |
||||
|
as on 30.06.2014 |
||||
|
(Unaudited) |
||||
|
1 |
(a) Net Sales/Income from Operations |
11578.000 |
||
|
|
(b)Other Operating Income |
-- |
||
|
|
Total Income
From Operations (Net) |
11578.000 |
||
|
2 |
Expenditure |
|
||
|
|
(a) |
Cost of Materials Consumed |
9971.000 |
|
|
|
(b) |
Purchases of Stock-in-Trade |
688.000 |
|
|
|
(c) |
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(276.000) |
|
|
|
(d) |
Employees benefits expense |
290.000 |
|
|
|
(e) |
Depreciation and amortization expense |
384.000 |
|
|
|
(f ) |
Other expenses |
735.000 |
|
|
|
|
TOTAL (B) |
11792.000 |
|
|
|
|
|
||
|
3 |
Profit from operation before other income, interest and other
exceptional items(1-2) |
(214.000) |
||
|
4 |
Other Income |
23.000 |
||
|
5 |
profit before interest and exceptional items(3+4) |
(191.000) |
||
|
6 |
Interest |
844.000 |
||
|
7 |
Profit after interest but before exceptional items(5-6) |
(1035.000) |
||
|
8 |
Exceptional Items |
(186.000) |
||
|
9 |
Profit(+)/Loss(-) from Ordinary Activities before tax (7-8) |
(1221.000) |
||
|
10 |
Tax Expenses |
(415.000) |
||
|
11 |
Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10) |
(806.000) |
||
|
12 |
Extra Ordinary Items |
-- |
||
|
13 |
Net Profit(+)/Loss(-) for the period (1112) |
(806.000) |
||
|
14 |
Paid-up Equity Share Capital Rs.1/ per share |
929.000 |
||
|
15 |
Reserves excluding revaluation reserves |
-- |
||
|
16 |
Earning Per
Share |
|
||
|
(a) |
Basic and diluted EPS before Extraordinary items for the period, for
the year to date and for the previous year(not to be annualised) |
(1.05) |
||
|
(b) |
Basic and diluted EPS after Extraordinary
items for the period, for the year to date and for the previous year(not to
be annualised) |
(1.05) |
||
|
17 |
Public
Shareholding |
|
||
|
|
Number of Shares |
671319650 |
||
|
|
Percentage of Shareholding |
72.28% |
||
|
18 |
Promoters and Promoter group |
|
||
|
|
a) Pledged/Encumbered |
|
||
|
|
Number of shares |
79775270 |
||
|
|
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
30.98% |
||
|
|
Percentage of Shares (as a % of the total share capital of the
Company) |
8.59% |
||
|
|
b) Non-encumbered |
|
||
|
|
Number of shares |
177716322 |
||
|
|
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
69.02% |
||
|
|
Percentage of Shares (as a % of the total share capital of the
Company) |
19.13% |
||
|
|
Particulars |
3 months ended 30.06.2014 |
||
|
|
INVESTOR
COMPLAINTS |
|
||
|
|
Pending at the beginning of the quarter |
1 |
||
|
|
Received during the quarter |
17 |
||
|
|
Disposed off during the quarter |
18 |
||
|
|
Remaining unresolved at the end of the quarter |
NIL |
||
|
Particulars |
For The Quarter Ended On 30.06.2014 (Unaudited) |
|
Segment Revenue : |
|
|
Sugar |
9878.000 |
|
Trading |
682.000 |
|
Co - generation |
903.000 |
|
Ethanol |
826.000 |
|
Other |
30.000 |
|
Total |
12319.000 |
|
Less : Intersegment Sales |
741.000 |
|
Net Sales |
11578.000 |
|
|
|
|
Segment Results : |
|
|
Sugar |
(307.000) |
|
Trading |
(7.000) |
|
Co - generation |
(5.000) |
|
Ethanol |
247.000 |
|
other |
20.000 |
|
Total |
(52.000) |
|
|
|
|
Less : Interest Expenses |
844.000 |
|
Less : other
Unallocable Expenses |
162.000 |
|
Less : exceptional Items |
186.000 |
|
Add: Other Unallocable Income |
23.000 |
|
Total Profit/ (Loss) Before Tax |
(1221.000) |
|
|
|
|
Capital Employed |
|
|
Sugar |
18428.000 |
|
Trading |
873.000 |
|
Co - generation |
7267.000 |
|
Ethanol |
4201.000 |
|
other |
155.000 |
|
Unallocable |
23793.000 |
|
Total |
54717.000 |
|
Notes: |
|
1. The above results were subjected to a “limited review” by the Statutory
Auditors, reviewed by the Audit Committee and approved at the meeting of the
Board of Directors held on August 13, 2014. 2. During the current quarter, the Company has revised the useful
lives of certain fixed assets as per useful life specified in schedule II of
the Companies Act, 2013. Accordingly, the carrying value of fixed assets as
on 1st April, 2014, has been depreciated over the revised remaining useful
lives. As a result of this change, the net depreciation charge for the
quarter ended 30th June, 2014 is lower by Rs. 41.33 millions. Further, an
amount of Rs. 73.83 millions (net of deferred tax of Rs. 38.02 millions)
representing the carrying value of assets, whose remaining useful life is
Nil, as at 1st April, 2014, has been charged to the opening balance of
retained earnings as per the transitional provision prescribed in note 7(b)
of Schedule II of the Companies Act, 2013. 3 Exceptional items represents gain/loss arising out of foreign
currency transactions. 4. The Board at its meeting held on May 27, 2014, allotted 257,491,592
Equity Shares of face value of Rs. 1/- each, for a price of Rs. 20.08 Per
Equity Share, aggregating to Rs. 5170.43 millions to M/s Wilmar Sugar
Holdings Private. Limited. Consequently Wilmar Sugar Holdings Private Limited,
now holds 27.72% of the enhanced equity share capital of the company, and
paid-up Equity share capital of the company has increased from Rs. 671.32
millions to Rs. 928.81 millions. 5. The figures for the quarter ended 31st March, 2014 are the balancing
figures between the audited figures for the year ended 31st March, 2014 and
the published figures upto third quarter ended 31st December, 2013. 6. Figures for the previous period(s) have been regrouped /
reclassified, wherever necessary. |
FIXED ASSETS:
·
Lease Hold Land
·
Free Hold Land
·
Buildings
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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
judgment 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. 60.82 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.78.66 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
JAY |
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 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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.