%20LIMITED%20-%20285734%2012-Sep-2014_files/image013.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
12.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDO RAMA SYNTHETICS ( |
|
|
|
|
Registered
Office : |
31-A, MIDC Industrial Area, Butibori,
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
28.04.1986 |
|
|
|
|
Com. Reg. No.: |
11-166615 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1518.200 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17124MH1986PLC166615 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BPLI00021A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAALI1530L |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Polyester Filament Yarn (PFY), Polyester
Staple Fibre (PSF), Draw Texturised
Yarn (DTY) and Chips and also engaged in power generation, which is used
primarily for captive consumption |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 23740000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a well-established and second largest polyester producer in
India having, moderate track record. The company possesses a moderate financial profile marked by an
acceptable networth base along with highly accrued
trade payables and limited liquid investments outstanding as a result of
moderation in the business profile due to change in custom duty rates, high
crude prices making it difficult for the subject to compete with cotton and the
oversupply in the domestic market. Management has witnessed a dip in its sales-volume as well as has
reported a loss from its operations during FY14. The ratings also take into consideration, the various initiative
undertaken by the management, in order to bring the business operation on
track. Trade relations are fair. Business is active. Payment terms are
reported as slow but correct. In view of established track record of two decades and experienced
promoters, the subject can be considered for business dealings with
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
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 |
Long term loans BB- |
|
Rating Explanation |
Moderate risk of default regarding timely
servicing and high credit risk. |
|
Date |
June, 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term proposed limits A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
June, 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.
LOCATIONS
|
Registered Office/ Factory : |
31-A, MIDC Industrial Area, Butibori, Nagpur – 441 122, Maharashtra, India |
|
Tel. No.: |
91-7104-663000-01 |
|
Fax No.: |
91-7104-663200 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate
Office 1 : |
20th Floor, DLF Square, DLF Phase II, NH 8, Gurgaon - 122 003, Haryana, India |
|
Tel. No.: |
91-124-4997000 |
|
Fax No.: |
91-124-4997070 |
|
E-Mail : |
ranvirk.vij@indorama-ind.com |
|
|
|
|
Corporate Office 2 : |
Dr. Gopaldas Bhawan, 28, Barakhamba Road, New Delhi – 110001, India |
|
|
|
|
|
|
|
Marketing Offices 1 : |
G/504, ICB FLORA, SG Highway, Gota, Ahmedabad - 382481, Gujarat, India |
|
|
|
|
Marketing Offices 2 : |
Shop No. G1, G2, Nakoda Textile
Tower, Trilok Marg - Gandhinagar, |
|
Tel. No.: |
91-1482-248576 |
|
Fax No.: |
91-1482-248733 |
|
|
|
|
Marketing Offices 3 : |
Sarang, 1st Floor, 8/5, Race Course Road, Coimbatore - 641 018, Tamilnadu, India |
|
Tel. No.: |
91-422-2220456 |
|
Fax No.: |
91-422-2220658 |
|
|
|
|
Marketing Offices 4 : |
37/3, ‘G Tower’, Perundurai Road, Erode-638011, Tamilnadu, India |
|
Tel. No.: |
91-424-2240847 |
|
|
|
|
Marketing Offices 5 : |
20th Floor, DLF Square, DLF Phase-II, NH-8, Gurgaon - 122 002, Haryana, India |
|
Tel. No.: |
91-124-4997000 |
|
Fax No.: |
91-124-4997070 |
|
|
|
|
Marketing Offices 6 : |
H.NO. 12-1-1314/A/5, Laxmi Nagar, North Lalaguda, Secunderabad - 500 017, Andhra Pradesh, India |
|
|
|
|
Marketing Offices 7 : |
7-C, Kiran Shankar Roy Road, Hastings Chambers, Ground Floor, Room No-GX, Kolkata - 700001, West Bengal, India |
|
|
|
|
Marketing Offices 8 : |
B-XIX-122/2, 4th Floor, Golden Plaza, The Mall Road, Ludhiana - 141 001, Punjab, India |
|
Tel. No.: |
91-161-2442752 / 5045068 |
|
|
|
|
Marketing Offices 9 : |
No. 102 / G-1, Kameshwara Apartment, Sathya Sai Nagar Main Road, Madurai - 625003, Tamilnadu, India |
|
Tel. No.: |
91-452-2694804 |
|
|
|
|
Marketing Offices 10 : |
The Metropolitan, 6th Floor, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051, Maharashtra, India |
|
Tel. No.: |
91-22-26571234 |
|
Fax No.: |
91-22-26571222 |
|
|
|
|
Marketing Offices 11 : |
L-572, Behind Ram Sharnam, Model Town, Panipat - 132 103, Haryana, India |
|
|
|
|
Marketing Offices 12 : |
A/9, 1st Floor, Gurukrupa Business Centre, Opposite Kotak Mahindra Bank, Vapi Main Road, Amli, Silvassa - 396230, UT of Dadra and Nagar Haveli, India |
|
Tel. No.: |
91-260-2643416/17, 2644519 |
|
|
|
|
Marketing Offices 13 : |
202, Trividh Chambers, Opposite Fire Brigade Station, Ring Road, Surat - 395 002, Gujarat, India |
|
Tel. No.: |
91-261-2339368 / 2350701 / 2350687 |
|
|
|
|
Marketing Offices 14 : |
4/5, Alagappa Complex, 1st Floor, Opposite Tamilnadu Theatres, Palladam Road, Tirupur - 641 604, Tamilnadu, India |
|
Tel. No.: |
91-421-2217994 |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Mohan Lal Lohia |
|
Designation : |
Chairman Emeritus |
|
|
|
|
Name : |
Mr. Om Prakash Lohia |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Vishal Lohia |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. Anant Kishore |
|
Designation : |
Whole-time Director and CEO |
|
|
|
|
Name : |
Mr. Ashok Kumar Ladha |
|
Designation : |
Non-executive Independent Director |
|
|
|
|
Name : |
Mr. Om Prakash Vaish |
|
Designation : |
Non-executive Independent Director |
|
|
|
|
Name : |
Mr. Arvind Pandalai |
|
Designation : |
Non-executive Independent Director |
|
|
|
|
Name : |
Mr. Suman Jyoti Khaitan |
|
Designation : |
Non-executive Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Jayant Sood |
|
Designation : |
Company Secretary |
|
|
|
|
CORPORATE
EXECUTIVES |
|
|
|
|
|
Name : |
Mr. Anant Kishore |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Sanjay Syal |
|
Designation : |
President and Chief Financial Officer |
|
|
|
|
Name : |
Mr. Ajay Gupta |
|
Designation : |
Site Head |
|
|
|
|
Name : |
Mr. Arvind Gupta |
|
Designation : |
Marketing Head |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
52924848 |
37.39 |
|
|
4329204 |
3.06 |
|
|
57254052 |
40.45 |
|
|
|
|
|
|
961724 |
0.68 |
|
|
43288057 |
30.59 |
|
|
44249781 |
31.27 |
|
Total shareholding of Promoter and Promoter Group (A) |
101503833 |
71.72 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10796 |
0.01 |
|
|
2252106 |
1.59 |
|
|
4006850 |
2.83 |
|
|
14134419 |
9.99 |
|
|
20404171 |
14.42 |
|
|
|
|
|
|
3949436 |
2.79 |
|
|
|
|
|
|
8035831 |
5.68 |
|
|
7637611 |
5.40 |
|
|
19622878 |
13.86 |
|
Total Public shareholding (B) |
40027049 |
28.28 |
|
Total (A)+(B) |
141530882 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
10291360 |
0.00 |
|
|
10291360 |
0.00 |
|
Total (A)+(B)+(C) |
151822242 |
0.00 |
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%20LIMITED%20-%20285734%2012-Sep-2014_files/image006.gif)
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Polyester Filament Yarn (PFY), Polyester
Staple Fibre (PSF), Draw Texturised
Yarn (DTY) and Chips and also engaged in power generation, which is used
primarily for captive consumption |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers : |
¨ Axis Bank Limited ¨ Bank of India ¨ HDFC Bank Limited ¨ Oriental Bank of Commerce ¨ Punjab National Bank ¨ State Bank of Travancore ¨ IKB Deutsche Industriebank AG |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B S R and Associates Chartered Accountants |
|
Address : |
Gurgaon, Haryana, India |
|
|
|
|
Wholly owned
subsidiaries : |
¨ Indo Rama Renewables Limited (‘IRRL’) ¨ Indo Rama Renewables Porbandar Limited ¨ Indo Rama Renewables Ramgarh Limited ¨ Indo Rama Renewables Jath Limited |
|
|
|
|
Enterprises over which key management
personnel or their relatives have significant influence : |
¨ Indo Rama Petrochem Limited (IRPL), Thailand ¨ T P T Petrochemicals PCL (TPT Petro), Thailand ¨ P.T. Indo Rama Synthetics TBK, Jakarta |
|
|
|
|
Enterprises having significant influence
: |
¨ Brookgrange Investments Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
185000000 |
Equity Shares |
Rs.10/- each |
Rs.1850.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
151822242 |
Equity Shares |
Rs.10/- each |
Rs.1518.200 Millions |
|
|
|
|
|
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 |
1518.200 |
1518.200 |
1518.200 |
|
(b) Reserves & Surplus |
4418.900 |
4566.300 |
4475.100 |
|
(c) Money
received against share warrants |
0.000 |
203.000 |
203.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
5937.100 |
6287.500 |
6196.300 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1728.400 |
1475.700 |
1957.600 |
|
(b) Deferred tax liabilities (Net) |
1860.300 |
2070.900 |
2133.700 |
|
(c) Other long term liabilities |
8.300 |
8.400 |
7.800 |
|
(d) long-term provisions |
181.400 |
149.300 |
147.500 |
|
Total Non-current Liabilities (3) |
3778.400 |
3704.300 |
4246.600 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2458.500 |
3427.200 |
2572.000 |
|
(b) Trade payables |
5306.500 |
5360.300 |
5561.000 |
|
(c) Other current
liabilities |
1481.400 |
1341.200 |
2232.300 |
|
(d) Short-term provisions |
204.300 |
278.500 |
236.800 |
|
Total Current Liabilities (4) |
9450.700 |
10407.200 |
10602.100 |
|
|
|
|
|
|
TOTAL |
19166.200 |
20399.000 |
21045.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
10592.900 |
11720.800 |
12732.500 |
|
(ii) Intangible Assets |
4.300 |
9.400 |
12.300 |
|
(iii) Capital
work-in-progress |
1.700 |
26.500 |
265.700 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
369.900 |
369.900 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1198.200 |
805.100 |
532.200 |
|
(e) Other Non-current assets |
76.100 |
196.100 |
100.400 |
|
Total Non-Current Assets |
12243.100 |
13127.800 |
13643.100 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
41.900 |
103.000 |
148.300 |
|
(b) Inventories |
2936.100 |
3036.000 |
3636.000 |
|
(c) Trade receivables |
1117.900 |
875.300 |
960.500 |
|
(d) Cash and cash
equivalents |
429.400 |
369.400 |
309.700 |
|
(e) Short-term loans and
advances |
807.800 |
1399.600 |
1021.400 |
|
(f) Other current assets |
1590.000 |
1487.900 |
1326.000 |
|
Total Current Assets |
6923.100 |
7271.200 |
7401.900 |
|
|
|
|
|
|
TOTAL |
19166.200 |
20399.000 |
21045.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
26291.200 |
29101.300 |
29688.000 |
|
|
|
Other Income |
2440.100 |
2407.800 |
2072.600 |
|
|
|
TOTAL |
28731.300 |
31509.100 |
31760.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
21250.700 |
24266.200 |
22789.800 |
|
|
|
Purchases of Stock-in-Trade |
0.000 |
4.600 |
0.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
905.700 |
84.600 |
1594.000 |
|
|
|
Employees benefits expense |
844.100 |
812.400 |
736.000 |
|
|
|
Other expenses |
3284.900 |
3516.800 |
3450.200 |
|
|
|
Exceptional items |
995.100 |
392.600 |
652.500 |
|
|
|
TOTAL |
27280.500 |
29077.200 |
29222.500 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
1450.800 |
2431.900 |
2538.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
352.300 |
445.100 |
612.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
1098.500 |
1986.800 |
1925.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
1351.200 |
1579.900 |
1543.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(252.700) |
406.900 |
382.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(170.900) |
(5.700) |
62.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(81.800) |
412.600 |
319.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2081.900 |
1846.900 |
1703.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim dividend
|
151.800 |
151.800 |
151.800 |
|
|
|
Proposed
dividend |
25.800 |
25.800 |
24.600 |
|
|
BALANCE CARRIED
TO THE B/S |
1822.500 |
2081.900 |
1846.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
6856.200 |
7498.600 |
8449.500 |
|
|
|
Dividend |
28.800 |
104.600 |
211.400 |
|
|
|
Sale of current investments (Gross consideration) |
2418.600 |
2080.700 |
1755.800 |
|
|
TOTAL EARNINGS |
9303.600 |
9683.900 |
10416.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
16258.400 |
14991.600 |
14948.700 |
|
|
|
Packing Material |
0.000 |
1.500 |
10.000 |
|
|
|
Stores & Spares |
90.600 |
61.500 |
16.600 |
|
|
|
Capital Goods |
5.200 |
36.600 |
444.400 |
|
|
TOTAL IMPORTS |
16354.200 |
15091.200 |
15419.700 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(0.54) |
2.72 |
2.11 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(0.28) |
1.31 |
1.01 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.96) |
1.40 |
1.29 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.34) |
2.03 |
1.84 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.04) |
0.06 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.71 |
0.78 |
0.73 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.73 |
0.70 |
0.70 |
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 |
1518.200 |
1518.200 |
1518.200 |
|
Reserves & Surplus |
4475.100 |
4566.300 |
4418.900 |
|
Money received against share warrants |
203.000 |
203.000 |
0.000 |
|
Net
worth |
6196.300 |
6287.500 |
5937.100 |
|
|
|
|
|
|
long-term borrowings |
1957.600 |
1475.700 |
1728.400 |
|
Short term borrowings |
2572.000 |
3427.200 |
2458.500 |
|
Total
borrowings |
4529.600 |
4902.900 |
4186.900 |
|
Debt/Equity
ratio |
0.731 |
0.780 |
0.705 |
%20LIMITED%20-%20285734%2012-Sep-2014_files/image008.gif)
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 |
29688.000 |
29101.300 |
26291.200 |
|
|
|
(1.976) |
(9.656) |
%20LIMITED%20-%20285734%2012-Sep-2014_files/image010.gif)
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 |
29688.000 |
29101.300 |
26291.200 |
|
Profit |
319.600 |
412.600 |
(81.800) |
|
|
1.08% |
1.42% |
(0.31%) |
%20LIMITED%20-%20285734%2012-Sep-2014_files/image012.gif)
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 |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Lodging No.:- LPETNL/73/2011 Filing
Date:- 03/02/2011 Reg. No.:- LPETN/73/2011 Reg.
Date:- 03.02.2011 |
|
Petitioner: RELIANCE
INFRASTRUCTURE LIMITED
Respondent: INDO RAMA SYNTHETICS (INDIA) LIMITED Petn. Adv : MULLA
AND MULLA AND C.B. AND C (0) District: MUMBAI |
|
Bench: Single Status: Pre-Admission
Category: LEAVE
PETITION UNDER CLAUSE XII |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10468964 |
03/01/2014 |
250,000,000.00 |
State Bank of Travancore |
Commercial Branch, Travancore Palace, K.G Marg, New Delhi, Delhi - 110001, INDIA |
B93028843 |
|
2 |
10461775 |
29/11/2013 * |
150,000,000.00 |
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA |
NATIONAL INSURANCE BUILDING, GROUND FLOOR, S.V. PATEL MARG, KINGSWAY,
NAGPUR, Maharashtra - 440001, INDIA |
B90697632 |
|
3 |
10341105 |
20/01/2012 |
240,000,000.00 |
ORIENTAL BANK OF COMMERCE |
E-Block, Harsha Bhawan,
Connaught Place, New Delhi, Delhi - 110001, INDIA |
B34538363 |
|
4 |
10062641 |
30/07/2012 * |
850,000,000.00 |
STATE BANK OF TRAVANCORE |
Commercial Branch, Travancore House, K.G. Marg, New Delhi, Delhi - 110001, INDIA |
B56359409 |
|
5 |
90210703 |
19/12/2006 * |
952,496,718.75 |
IKB DEUTSCHE INDUSTRIEBANK AG |
Wilhelm-Botzkes-Str.1, 40474 Dusseldorf.,
Federal |
- |
|
6 |
80016714 |
19/12/2006 * |
1,742,755,000.00 |
IKB DEUTSCHE INDUSTRIEBANK AG |
Wilhelm-Botzkes-Str.1, 40474 Dusseldorf.,
Federal |
- |
|
7 |
80016712 |
19/12/2006 * |
222,343,000.00 |
IKB DEUTSCHE INDUSTRIEBANK AG |
Wilhelm-Botzkes-Str.1, 40474 Dusseldorf.,
Federal |
- |
|
8 |
90209638 |
30/07/2012 * |
750,000,000.00 |
PUNJAB NATIONAL BANK |
15-17, Large Corporate Branch, Tolstoy House, |
B56385412 |
|
9 |
80016709 |
30/07/2012 * |
1,900,000,000.00 |
Oriental Bank of Commerce |
85-A, Rishyamook Building, Panchkuian Road, New |
B56643711 |
|
10 |
90209563 |
20/03/2014 * |
2,208,200,000.00 |
Bank of India |
New Delhi Large Corporate Branch, 10th Floor, Chanderlok
Building, 36,Janpath, New Delhi, Delhi - 110001, INDIA |
C05650304 |
|
11 |
90204064 |
30/07/2012 * |
670,000,000.00 |
AXIS BANK LTD. |
2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, |
B55797575 |
|
12 |
80016711 |
21/11/2013 * |
750,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA |
B91406934 |
|
13 |
90202627 |
08/11/1990 |
12,700,000.00 |
INDUSTRIAL FINANCE CORPORATION OF INDIA |
BANK OF BARODA BUILDING, 16; SANSAD MARG, NEW DELHI, Delhi - 110001,
INDIA |
- |
|
14 |
90202604 |
10/05/1990 |
12,600,000.00 |
INDUSTRIAL FINANCE CORPORATION OF INDIA |
BANK OF BARODA BUILDING, 16; SANSAD MARG, NEW DELHI, Delhi - 110001,
INDIA |
- |
|
15 |
90202540 |
12/09/1989 * |
2,500,000.00 |
INDUSTRIAL FINANCE CORPORATION OF INDIA |
BANK OF BARODA BUILDING, 16; SANSAD MARG, NEW DELHI, Delhi - 110001,
INDIA |
- |
* Date of charge modification
GENERAL INFORMATION
Indo Rama Synthetics (India) Limited (hereinafter referred to as ‘the Company’ or ‘IRSL’) is a manufacturer of Polyester Filament Yarn (PFY), Polyester Staple Fibre (PSF), Draw Texturised Yarn (DTY) and Chips. The Company is also engaged in power generation, which is used primarily for captive consumption. The Company’s manufacturing facilities are located at Butibori, Nagpur.
OPERATIONAL AND FINANCIAL REVIEW
During the year under report, the Company recorded gross revenue of Rs. 28610.000 Million as against Rs. 31664.000 Million in previous year. EBIDTA is Rs. 2446.000 Million as against Rs.2825.000 Million last year. Loss after Tax stood at Rs. 81.800 Million as against Profit of Rs.412.600 Million for the previous year.
The year 2013-14, was one of the most challenging years in the recent past. The Indian economy passed through a difficult phase with business activities on a lower side for most of the sectors due to depreciation in the value of rupee, rising crude oil prices and increasing raw material costs. Adding to the weak demand, production was also hampered due to the lack of adequate raw material.
The Company focused on widening product basket, optimising raw material usage, rationalising costs, accelerating global forays and enhancing people capabilities. These initiatives will help sustain the difficult times and grow their core strengths.
The demand for man-made fibres is showing signs of improvement and we are hopeful that the demand for polyester will see revival. Polyester demand will be driven by its growing relevance in daily life across home textiles, apparel, automotive, furnishing fabrics, technical textile and non-woven segments.
Going ahead, with demand going up both in the Domestic and International Market, they are hopeful that they will be able to utilise higher production capacity and grow business volumes.
MANAGEMENT DISCUSSION AND ANALYSIS
Global Economy
The global
economic environment has broadly strengthened, with modestly better consumer
and investment sentiments and less inherent fragilities. It is likely to
improve further, with much of the growth impetus emanating from advanced
economies. However, one disturbing trend is that global growth pattern still
remains uneven with a stronger US economy, subdued growth in the Euro Area and
Japan and slowdown in the Emerging Markets and Developing Economies (EMDC).
China’s leadership has now adopted a more balanced growth paradigm with
enhanced focus on the services sector. Such an approach may augur well for the
Chinese economy in the foreseeable future. If they take a macro perspective,
full global recovery remains a distant prospect. However, the journey has
already begun in right earnest.
Indian Economy
India’s economy faced multiple roadblocks to
growth in the form of persistently high inflation, sluggish industrial
production, discouraging agricultural output, modest investment in
infrastructure and stalled projects owing to bureaucratic hassles and no
definite agenda towards reforms. However, the new Central Government is
expected to accelerate the pace of reforms and help enhance investor
confidence. It is estimated that the country’s GDP will grow by 5.4% in
2014-15, compared to 4.7% in 2013-14 (Source: IMF).
Rapid
implementation of Goods and Services Tax (GST) and further reduction in fiscal
deficit are expected to be some of the key thrust areas for the new government.
Such an approach is expected to pave the way for the country to achieve 7-7.5%
growth.
The depreciation
of the Indian rupee last year gave a fillip to India’s export industry.
Moreover, the foreign trade policy (FTP) for 2014-19 is likely to be rolled out
soon to promote exports and narrow down trade deficit.
FIBRE INDUSTRY
SCENARIO
Global Fibre Industry
Global fibre production rose by an estimated 1.6% in 2013 from 84
million tonnes to 85.4 million tonnes.
The growth is largely due to the higher production volumes of textiles fibres in China. The marginal growth in volumes is
attributed to weak global economy and weak demand. The MMF production reached a
new level of 58.5 million tonnes, up from 56.0
million tonnes, a 4.3% escalation. The polyester fibre accounted for an estimated 44 million tonnes registering an increase of 5.5% in volumes. The
polyester fibre accounts for 51.5% of total fibre volumes and 75% of MMF fibres.
The cellulosic fibre
production went up by 9.6% for the year under consideration at an estimated 5.8
million tonnes. The Polyamide or Nylon increased by
an estimated 3.9% and Polypropylene marginally increased by 1%. China accounted
for the highest growth at 10.8% in MMF production to 38.5 million tonnes in 2013 from 35.5 million tonnes
in 2012.
Cotton fibre global production is estimated to decline by 5.2% to
a level of 25.4 million tonnes in 2013-14 compared to
26.8 million tonnes in 2012-13. Cotton inventory rose
by 8.2% at estimated 21.1 million tonnes. The end use
stock ratio stands at 88.5%. (USDA, April 2014)
Synthetic fibres accounted for 62%, cotton 30%, manmade cellulosic fibres 6.8% and wool
1.3% of 85.4 million tonnes of fibres
produced in 2013, as per the estimates of CIRFS and The Fibre
Year.
Indian Fibre Industry
India’s fibre demand is estimated at 8.4 million tonnes in 2013, compared with 8.0 million tonnes in 2012, a 5% escalation. Cotton demand went up by
3.2% from 4.64 million tonnes in 2012 to 4.79 million
tonnes in 2013, polyester fibre
estimated demand went up by 7.5% at 3.2 million tonnes.
Viscose fibre rose by estimated9% from 0.30 million tonnes to 0.33 million tonnes.
Acrylic fibre continued to make recovery, up by 17%
from 0.096 million tonnes in 2012 to 0.11 million tonnes in 2013. The polyester fibre
accounted for 37% and cotton accounted for 57% of India’s total fibre demand. Together cotton and polyester fibre accounts for 94% of the demand.
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
|
Particulars
|
31.03.2014 (Rs. In Millions) |
31.03.2013 (Rs. In Millions) |
|
Excise / customs / service tax matters in
dispute/ under appeal |
631.900 |
3036.100 |
|
Income tax matters in dispute/ under
appeal |
155.200 |
175.300 |
|
Sales tax matters in dispute/ under appeal |
64.600 |
60.700 |
|
Claims by ex-employees, vendors, customers
and civil cases |
7.100 |
6.100 |
FIXED ASSETS
œ Land (Freehold and
Leasehold)
œ Roads and
Buildings
œ Plant and
Machinery
œ Furniture and
Office Equipments
œ Vehicles
œ Software
UNAUDITED
RESULTS FOR THE QUARTER AND ENDED ON 30TH JUNE, 2014
(Rs. In Millions)
|
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
1 |
Income from Operations |
|
|
|
|
a) Net Sales/Income from Operations (net of excise duty) |
7052.700 |
|
|
|
b) Other Operating Income |
100.300 |
|
|
|
Total Income from Operations (Net) |
7153.000 |
|
|
2 |
Expenses |
|
|
|
|
a) |
Cost of Materials consumed |
5610.500 |
|
|
b) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
15.300 |
|
|
c) |
Employee benefit expenses |
228.800 |
|
|
d) |
Other expenses |
893.400 |
|
|
Total Expenses |
6748.000 |
|
|
3 |
|
Profit /(Loss) from
operations before depreciation and amortization, other income, finance costs
and exceptional items and tax |
405.000 |
|
4 |
Depreciation and
Amortization Expenses |
310.100 |
|
|
5 |
|
Profit /(Loss) from
operations before other income, finance costs and exceptional items |
7058.100 |
|
6 |
Other Income |
59.900 |
|
|
7 |
|
Profit /(Loss) from
ordinary activities before finance costs and exceptional items |
154.800 |
|
8 |
Finance Costs |
100.700 |
|
|
9 |
|
Profit /(Loss) from
ordinary activities after finance costs but before exceptional items |
54.100 |
|
10 |
Exceptional Items |
116.100 |
|
|
11 |
Profit /(Loss) from ordinary activities before tax |
170.200 |
|
|
12 |
Tax Expense |
(50.300) |
|
|
13 |
Net Profit /(Loss) for the period |
220.500 |
|
|
14 |
Paid up equity share
capital (Eq. shares of Rs.10/- each) |
1518.200 |
|
|
15 |
Reserve excluding
revaluation reserves |
|
|
|
|
|
Earnings per share
(before/after extraordinary items) of Rs.10/-
each |
|
|
|
|
Basic and Diluted |
1.45 |
|
|
|
|
|
|
A |
|
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
|
Public Shareholding |
|
|
|
|
- No. of Shares |
50318409 |
|
|
|
- Percentage of
Shareholding |
33.14% |
|
2 |
|
Promoters and promoter group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
-- |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
-- |
|
|
|
- Percentage of shares (as
a % of the total share capital of the Company) |
-- |
|
|
|
b) Non- encumbered |
|
|
|
|
- Number of shares |
101503833 |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
100.00% |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
66.86% |
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
|
B |
|
Investor Complaints |
|
|
|
|
Pending at the beginning of
the quarter |
-- |
|
|
|
Received during the
quarter |
7 |
|
|
|
Disposed during the
quarter |
7 |
|
|
|
Remaining unresolved at
the end of the quarter |
-- |
NOTE:
1.
The
Audit Committee reviewed the above results. The Board of Directors, at their
meetings held on 7 August 2014, have approved the above results.
2.
The
Statutory Auditors of the Company have carried out a Limited Review of the
financial results for the quarter ended 30 June 2014 and an unqualified opinion
has been issued. The review report of statutory auditors is being filed with
Bombay and National Stock Exchanges.
3.
The
Company has made an early application, since the year 2010-11, of Accounting
Standard 30 "Financial Instruments- Recognition and Measurement",
issued by the Institute of Chartered Accountants of India for accounting of
forward exchange contracts taken for highly probable/forecast transactions,
which are not covered by Accounting Standard-1 1. An amount of Rs. 4.45 crores has been
recognized as income in the financial results for the quarter ended 30 June
2014 and included in exceptional items as an adjustment on the said application
of Accounting Standard 30.
4.
Due
to significant volatility in the foreign currency vis-6-vis local currency, the
Company has considered the foreign exchange fluctuation as an exceptional item.
5. The Company's business mainly comprises manufacture of polyester. During the past few years, there has been significant volatility in raw material prices of polyester which are linked with crude oil prices and is subject to foreign exchange fluctuations. The sales realization in the industry has been low in comparison to the raw material price variations. In addition, stiff competition in certain products, low capacity utilisation, high inflation, high interest rates and weakened rupee has resulted in a temporary phase of low operating margins losses in the recent pM and also accumulation of significant unabsorbed depreciation as per tax laws. However, the Company's products command a premium in the market due to cost competitiveness and quality standards and its premium product lines are operating at full capacity. The Company has internally assessed its. position and the future outlook and has also initiated various measures including strategic steps to ensure profitable operations. To achieve the projected level of profitability, the Company is in the process of finalizing plans to increase the capacity for its preminm products by making fwther investment in the product line and is also confident of the market demand for the increased production. These actions would be coupled with other initiatives which include cost saving measures, exploration of new markets especially exports, streamlined utilisation of export benefits, developing backward integration facilities towards producing certain key input materials. The Company is also arranging for funds to meet the above plans. Accordingly, the Company believes that considering the expected investment and resultant profitability over the next year and in futwe years, no provision is required for impairment of assets and is confident that the MAT credit entitlement carried at the end of the year is fully recoverable.
6. During the quarter ended 30 June 2014, based on internal technical evaluation, management reassessed the remaining useful life of assets, primarily consisting of buildings and plant and machinery with effect from 1 April 2014. Accordingly, the useful life of assets does not require a change from the previous estimates.
7. The Company's business activity falls within a single primary business segment viz. 'Polyester'
PRESS RELEASE
Indo
Rama Synthetics (India) Ltd. Q1 EBIDTA at Rs 581.000 Millions Net Sales at Rs
7052.700 Millions
August
07, 2014
New Delhi: Subject, India’s largest dedicated polyester manufacturer, today announced its audited results for the Quarter and financial Year ended June 30, 2014.
For the quarter ended June 30, 2014, net sales stood at Rs 7052.700 millions as against Rs 7062.600 millions of Q1 of previous year. The EBIDTA for the period stood at Rs 581.000 millions. Net profit for the period stood at Rs 220.500 millions.
Indo Rama has demonstrated its resilience in the challenging economic times last year in the adverse conditions and we continue to be steady despite all odds. In order to grow further from here, we have taken some cost improvement initiatives, which will further add to our competitiveness. With the Polyester prices bottoming out and rupee stabilizing, we expect the sentiments and performance to improve from here.
We have been successfully able to make optimum utilization of available resources so as to keep up our operational efficiencies. We hope to see improvement in the overall economic environment that should help us perform better in the coming quarters. With the demand looking up in the coming year, we project that the following quarters will be better than the last.
Commenting on the company’s performance, Mr. O. P. Lohia, Chairman and Managing Director, Subject
The overall market outlook for polyester remained turbulent and uncertain in the last few quarters. High raw material cost has impacted the overall business proposition in a big manner. We remained watchful, agile and prudent and have launched several operational excellence initiatives to further enhance our operational performance in the last quarter. I am confident that with our clear strategic focus, our superior execution and our top notch team, we will be delivering better margins in the future.
The recent government announcement of levying Provisional Anti-Dumping Duty on imports of PTA will have a huge impact on the margins of the Polyester Industry, which is already reeling under thin margins and will keep on suffering as competition will become more severe. The downstream industry will have to become more alert as there is no anti-dumping duty on fabrics which would become expensive and the garment would also become dearer.
About Subject
Subject. is India’s largest dedicated polyester manufacturer with an Integrated Manufacturing Complex in Butibori near Nagpur in Maharashtra, with production capacity of 6,10,050 tonnes per annum of Polyester Staple Fibre, Filament Yarn, Draw Texturized Yarn, Fully Drawn Yarn and Textile grade Chips.
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.60.91 |
|
|
1 |
Rs.98.99 |
|
Euro |
1 |
Rs.78.63 |
INFORMATION DETAILS
|
Information Gathered
by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
29 |
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.