MIRA
INFORM REPORT
|
Report Date : |
16.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
TITAN COMPANY LIMITED (w.e.f. 01.08.2013) |
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Formerly Known
As : |
TITAN INDUSTRIES LIMITED |
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Registered
Office : |
3, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
26.07.1984 |
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Com. Reg. No.: |
18-001456 |
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Capital Investment
/ Paid-up Capital : |
Rs. 887.786 Millions |
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CIN No.: [Company Identification
No.] |
L74999TZ1984PLC001456 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHET08980G |
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PAN No.: [Permanent Account No.] |
AAACT5131A |
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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
: |
Manufacturer and Seller of Watches, Jewellery Pieces,
Table Clocks, etc. |
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No. of Employees
: |
7363 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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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 joint venture between the “Tata Group” and “Tamil Nadu
Industrial Development Corporation Ltd (TIDCO)”. It is an established company having excellent track record. Financial position of the company is sound. Fundamentals are strong.
Directors are reported to be experienced and respectable businessman. 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 good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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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 |
CRISIL |
|
Rating |
AA+ (Long Term Rating) |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
25.09.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (short Term Rating) |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
25.09.2013 |
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
MANAGEMENT NON-COOPERATIVE. (TEL. NO.: 91-80-66609000)
LOCATIONS
|
Registered Office : |
3, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu,
India |
|
Tel. No.: |
91-4344-664199 |
|
Fax No.: |
91-4344-276037 |
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E-Mail : |
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Website : |
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Corporate Office : |
132, 133 Divyasree Technopolis, Off HAL Airport Road, Yamalur, Bangalore – 560037, Karnataka, India |
|
Tel. No.: |
91-80-66609000/ 66609027 / 28 |
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Fax No.: |
91-80-25269923/ 25263001 |
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E-Mail : |
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Regional Offices : |
Located at: ·
New Delhi ·
Kolkata ·
Mumbai ·
Bangalore |
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Watch Plant 1 : |
Plot Nos.3, 4 and 5, SIPCOT Industrial Complex, Hosur – 635126,
Tamilnadu, India |
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Watch Plant 2 : |
Mohabewala Industrial Area, Dehradun - 248002, (i) Unit 1 - Khasra No. 148D, 173B, 176A and 176B (ii) Unit 2 - Khasra No. 148B, 149B |
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Watch Plant 3 : |
Plot No. C1, C2, C3, Khasra No. 37, Village Bantakheri, Tehsil -
Roorkee, District - Haridwar, Uttaranchal, India |
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|
|
|
Watch Plant 4 : |
Plot No. 10B, Khasra Nos. 150, 151, 152, 153 Sector 2, Integrated
Industrial Estate, SIDCUL, Pant Nagar 263 153, Udham Singh Nagar District,
Uttarkhand, India |
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|
|
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Precision Engineering Plants 1 : |
No.15 B, Bommasandra Industrial Area, Hosur Road, Anekal Taluka,
Bangalore - 562158, Karnataka, India |
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|
Precision Engineering Plants 2 : |
Plot Nos. 27, SIPCOT Industrial Area, Hosur - 635126, Tamilnadu, India
|
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Lens Plant: |
Located at: ·
Karnataka ·
Chennai ·
Pune ·
Hyderabad ·
Ahmedabad |
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Overseas Branch Office : |
Unit No. 11 and 12, 20/F, Metro Loft No. 38, Kwai Hei Street, Kwai
Chung N T, Hong Kong |
|
Tel No.: |
00852 64716536 |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. C.V. Sankar |
|
Designation : |
Chairman from 16th June 2014 |
|
|
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|
Name : |
Mr. Hans Raj Verma, |
|
Designation : |
Chairman |
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Name : |
Mr. N.S. Palaniappan |
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Designation : |
Director |
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|
Name : |
Mr. T.K. Arun |
|
Designation : |
Director |
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Name : |
Mr. Bhaskar Bhat |
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Designation : |
Managing Director |
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|
Name : |
Mr. Ishaat Hussain |
|
Designation : |
Director |
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|
Name : |
Mr. N.N. Tata |
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Designation : |
Director |
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|
Name : |
Mr. T.K. Balaji |
|
Designation : |
Director |
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|
Name : |
Mr. C.G. Krishnadas Nair |
|
Designation : |
Director |
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Name : |
Ms. Vinita Bali |
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Designation : |
Director |
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Name : |
Ms. Hema Ravichandar |
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Designation : |
Director |
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Name : |
Mr. Das Narayandas |
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Designation : |
Director |
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Name : |
Ms. Ireena Vittal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. A.R. Rajaram |
|
Designation : |
Head- Legal and Company
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2014
|
Category of
Shareholder |
No. of Shares |
% of No. of Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
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|
247476720 |
27.88 |
|
|
223531200 |
25.18 |
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|
471007920 |
53.05 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
471007920 |
53.05 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
15316794 |
1.73 |
|
|
554288 |
0.06 |
|
|
9352726 |
1.05 |
|
|
190985282 |
21.51 |
|
|
216209090 |
24.35 |
|
|
|
|
|
|
13648534 |
1.54 |
|
|
|
|
|
|
95539229 |
10.76 |
|
|
91015389 |
10.25 |
|
|
365998 |
0.04 |
|
|
356998 |
0.04 |
|
|
9000 |
0.00 |
|
|
200569150 |
22.59 |
|
Total Public shareholding
(B) |
416778240 |
46.95 |
|
Total (A)+(B) |
887786160 |
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) |
887786160 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Watches, Jewellery Pieces,
Table Clocks, etc. |
GENERAL INFORMATION
|
No. of Employees : |
7363 (Approximately) |
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Bankers : |
· Canara Bank · Bank of Baroda · The Hong Kong and Shanghai Banking Corporation Limited · Standard Chartered Bank · Oriental Bank of Commerce · Union Bank of India ·
Indian Bank |
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|||||||||||||||
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Facilities : |
(Rs.
In Millions)
|
|
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Banking
Relations : |
-- |
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|
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Prompters : |
·
Tamilnadu Industrial Development Corporation
Limited ·
Tata Sons Limited |
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|
|
|
Subsidiaries : |
·
Titan TimeProducts Limited ·
Favre Leuba AG |
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|
|
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Associates : |
· Green Infra Wind Power Theni Limited (formerly known as TVS Wind Power Limited) |
CAPITAL STRUCTURE
As on: 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs.10/- each |
Rs.1200.000 Millions |
|
4000000 |
Preference Shares |
Rs.100/- each |
Rs.400.000 Millions |
|
|
TOTAL |
|
Rs.1600.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
88778600 |
Equity Shares |
Rs.10/- each |
Rs.887.786
Millions |
|
|
|
|
|
Rights, preferences
and restrictions attached to shares
The Company has only one class of equity shareholders. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting.
In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholdings.
Reconciliation of the
shares outstanding at the beginning and at the end of the year
|
|
As on 31.03.2014 |
|
|
|
|
|
|
Equity shares with voting rights |
|
|
|
At the beginning of the year |
887.786 |
887.786 |
|
At the end of the year |
887.786 |
887.786 |
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 |
887.786 |
887.786 |
887.786 |
|
(b) Reserves & Surplus |
24351.796 |
18760.917 |
13611.182 |
|
(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) |
25239.582 |
19648.703 |
14498.968 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
0.000 |
0.000 |
58.889 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
717.628 |
628.960 |
575.529 |
|
Total Non-current
Liabilities (3) |
717.628 |
628.960 |
634.418 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
8062.723 |
0.000 |
0.000 |
|
(b)
Trade payables |
8577.302 |
20972.637 |
18882.273 |
|
(c)
Other current liabilities |
15360.960 |
14573.486 |
10553.025 |
|
(d) Short-term
provisions |
3112.033 |
2931.775 |
2366.930 |
|
Total Current
Liabilities (4) |
35113.018 |
38477.898 |
31802.228 |
|
|
|
|
|
|
TOTAL |
61070.228 |
58755.561 |
46935.614 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
5903.440 |
4402.196 |
3577.545 |
|
(ii)
Intangible Assets |
58.925 |
84.179 |
109.706 |
|
(iii) Capital
work-in-progress |
328.740 |
416.624 |
248.521 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
265.706 |
185.090 |
160.490 |
|
(c) Deferred tax
assets (net) |
93.498 |
80.378 |
37.749 |
|
(d) Long-term Loan and Advances |
2037.199 |
1722.199 |
1279.408 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
8687.508 |
6890.666 |
5413.419 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current
investments |
0.000 |
0.000 |
0.0000 |
|
(b)
Inventories |
38671.944 |
36779.449 |
28786.6900 |
|
(c)
Trade receivables |
1520.221 |
1637.909 |
1631.0940 |
|
(d) Cash
and cash equivalents |
8889.288 |
11365.454 |
9605.3000 |
|
(e) Short-term
loans and advances |
3134.209 |
1986.862 |
1172.7810 |
|
(f)
Other current assets |
167.058 |
95.221 |
326.3300 |
|
Total
Current Assets |
52382.720 |
51864.895 |
41522.195 |
|
|
|
|
|
|
TOTAL |
61070.228 |
58755.561 |
46935.614 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
109157.938 |
101126.708 |
88383.784 |
|
|
Other Income |
1201.857 |
1007.709 |
941.140 |
|
|
TOTAL (A) |
110359.795 |
102134.417 |
89324.924 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
65587.843 |
67537.288 |
61450.816 |
|
|
Purchases of
Stock-in-Trade |
15914.161 |
15550.954 |
11508.828 |
|
|
(Increase)/ decrease in
finished goods, work-in-progress and stock-in-trade |
(995.658) |
(8128.842) |
(7518.513) |
|
|
Employees benefits
expense |
5344.867 |
4845.251 |
3923.434 |
|
|
Other expenses |
12822.295 |
11215.796 |
10689.855 |
|
|
TOTAL (B) |
98673.508 |
91020.447 |
80054.420 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (C) |
11686.287 |
11113.970 |
9270.504 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
871.108 |
506.400 |
437.153 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
10815.179 |
10607.570 |
8833.351 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
655.899 |
544.889 |
448.962 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX (E-F) (G) |
10159.280 |
10062.681 |
8384.389 |
|
|
|
|
|
|
|
Less |
TAX (H) |
2747.875 |
2810.871 |
2382.830 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
(G-H) (I) |
7411.405 |
7251.810 |
6001.559 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
2203.938 |
1973.149 |
1604.757 |
|
|
Others |
7.250 |
5.228 |
3.537 |
|
|
TOTAL EARNINGS |
2211.188 |
1978.377 |
1608.294 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
10026.708 |
28695.742 |
39496.642 |
|
|
Components and Stores
parts |
106.238 |
101.686 |
78.156 |
|
|
Capital Goods |
256.855 |
205.998 |
226.441 |
|
|
TOTAL IMPORTS |
10389.801 |
29003.426 |
39801.239 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
8.35 |
8.17 |
6.76 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
6.72 |
7.10 |
6.72 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.31 |
9.95 |
9.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.82 |
17.33 |
18.04 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.40 |
0.51 |
0.58 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.32 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49 |
1.35 |
1.31 |
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 |
887.786 |
887.786 |
887.786 |
|
Reserves & Surplus |
13611.182 |
18760.917 |
24351.796 |
|
Net worth |
14498.968 |
19648.703 |
25239.582 |
|
|
|
|
|
|
long-term borrowings |
58.889 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
8062.723 |
|
Total borrowings |
58.889 |
0.000 |
8062.723 |
|
Debt/Equity ratio |
0.004 |
0.000 |
0.319 |
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 |
88383.784 |
101126.708 |
109157.938 |
|
|
|
14.418 |
7.942 |
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 |
88383.784 |
101126.708 |
109157.938 |
|
Profit |
6001.559 |
7251.810 |
7411.405 |
|
|
6.79% |
7.17% |
6.79% |
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 |
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 |
DIAMOND INDUSTRY – INDIA
-
From time
immemorial, India is well known in the world as the birthplace for
diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The
achievement of the Indian diamond industry was possible only due to combination
of the manufacturing skills of the Indian workforce and the untiring and
unflagging efforts of the Indian diamantaires, supported by progressive
Government policies.
-
The
area of study of family owned diamond businesses derives its importance from
the huge conglomerate of family run organizations which operate in the diamond
industry since many generations.
-
Some of
the basic traits of family run business enterprises include spirit of
entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
-
Family
owned diamond businesses need to improve on many fronts including higher
standard of corporate governance, long-term performance – focused strategies,
modern management and technology.
-
Utmost
caution is to be exercised while dealing with some medium and large diamond
traders which are usually engaged in fictitious import – export, inter-company transactions,
financially assisted by banks. In the process, several public sector banks lost
several hundred million rupees. They mostly diverted borrowed money for diamond
business into real estate and capital markets.
-
Excerpts
from Times of India dated 30th October 2010 is as under –
-
Gem
& Jewellery Export Promotion Council in its statistical data has shown the
export of polished diamonds to have increase by 28 % in February 2013. Compared
to $ 1.4 bn worth of polished diamond export in February, 2012, India exported
$ 1.84 billion worth of polished diamonds in February 2013. A senior executive
of GJEPC said, “Export of cut and polished diamonds started falling month-wise
after the imposition of 2 % of import duty on the polished diamonds. But
February, 2013 has given a new ray of hope to the industry as the export of
polished diamonds has actually increased by 28 %. It means the industry
is on the track of recovery and round tripping of diamonds has stopped
completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The
banking sector has started exercising restraint while following prudent risk
management norms when lending money to gems and jewellery sector. This follows
the implementation of Basel III accord – a global voluntary regulatory standard
on bank capital adequacy, stress testing and market liquidity.
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2014 |
As on 31.03.2013 |
|
Short term
borrowings |
|
|
|
Loans repayable on demand from banks |
2000.000 |
0.000 |
|
|
|
|
|
Total |
2000.000 |
0.000 |
VIEW INDEX OF
CHARGES
|
S. No |
Charge ID |
Date of Charge Creation /Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN |
|
1 |
10451443 |
10/09/2013 |
18,565,000,000.00 |
CANARA BANK |
PRIME CORPORATE BRANCH, NO.25,
SHANKARANARAYANA BLDG M.G ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
B85906733 |
|
2 |
10158230 |
21/05/2009 * |
244,000,000.00 |
HSBC BANK (MAURITIUS) LIMITED |
6TH FLOOR, HSBC CENTRE, CYBER CITY, EBENE,
- 000000, MAURITIUS |
A63005292 |
|
3 |
80042817 |
08/10/2004 |
250,000,000.00 |
INDIAN BANK |
CREDIT DEPARTMENT, 110 M G ROAD,
BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
4 |
80033180 |
27/08/2004 |
250,000,000.00 |
ORIENTAL BANK OF COMMERCE |
26 HJS CHAMBERS, RICHMOND ROAD, BANGALORE,
KARNATAKA - 560025, INDIA |
- |
|
5 |
90007139 |
18/08/2003 |
110,000,000.00 |
CANARA BANK |
CORPORATE SERVICE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
6 |
90007127 |
09/07/2003 |
100,000,000.00 |
CANARA BANK |
CORPORATE SERVICE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
7 |
90007106 |
26/03/2003 |
167,000,000.00 |
BANK OF BARODA |
CORPORATE BANKING BRANCH H.J.S. CHAMBERS,
1ST FLOOR 26; RICHMOND ROAD, BANGALORE, KARNATAKA - 560025, INDIA |
- |
|
8 |
90007085 |
22/11/2002 |
200,000,000.00 |
CANARA BANK |
TRINITY CIRCLE BRANCH SHANKAR NARAYANA,
BUILDING |
- |
|
9 |
90007071 |
17/09/2002 |
200,000,000.00 |
CANARA BANK |
TRINITY CIRCLE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD, BANGALORE,
KARNATAKA - 560001, INDIA |
- |
|
10 |
90154815 |
06/06/1996 |
825,000.00 |
THE JANAKALYAN SAHAKARI BANK LIMITED |
VIVEK DARSHAN; OPP. BHAKTI BHAVAN,
CHEMBUR, BOMBAY, MAHARASHTRA - 400071, INDIA |
- |
|
11 |
90153280 |
20/05/1996 |
75,000.00 |
THE JANAKALYAN SAHAKARI BANK LIMITED |
VIVEK DARSHAN; OPP. BHAKTI BHAVAN,
CHEMBUR, BOMBAY, MAHARASHTRA - 400071, INDIA |
- |
|
12 |
90006470 |
17/04/2002 * |
20,000,000.00 |
CANARA BANK |
TRINITY CIRCLE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD, BANGALORE,
KARNATAKA - 560001, INDIA |
- |
|
13 |
90006469 |
05/06/2012 * |
26,000,000,000.00 |
CANARA BANK (LEADER) |
PRIME CORPORATE BRANCH SHANKAR NARAYANA
BUILDING, NO. 25, M.G.ROAD,
BANGALORE, KARNATAKA - 560001, |
B42427294 |
|
14 |
90006451 |
02/09/1988 * |
131,250,000.00 |
CANARA BANK |
112; J.C.ROAD, BANGALORE, TAMIL NADU -
560002, INDIA |
- |
|
* Date of charge modification |
||||||
FINANCIAL RESULTS
The year 2013-14 was one of the toughest years for the Indian economy with the GDP growth falling below 5%. The Indian Rupee weakened considerably during the year before recovering towards the end of the financial year. The Reserve Bank of India initiated measures to contain the Current Account Deficit by increasing the customs duty on gold and suspending credit on gold imports for domestic consumption.
In 2013-14, the Company’s sales income grew Rs. 7487.800 millions, an increase by 7.34% to Rs. 109551.400 millions compared with Rs. 102063.600 millions in the previous year. Profit before tax grew by Rs. 96.600 millions from Rs. 10062.700 millions to Rs. 10159.300 millions and the net profit grew by 2.20% to Rs. 7411.400 millions.
The year 2013-14 was a challenging one for the Watches Segment which grew by 6.9% to Rs. 17908.000 millions. The slowdown in the economy led to consumer sentiment remaining subdued during the year. This reflected in the moderate growths recorded by most of the Company’s brands. The retail growth in the Multi Brand Outlet channel has been lower than the growth seen in the World of Titan and the Fastrack stores.
The Company’s Jewellery Division had the most challenging time, hit by a very adverse regulatory and macro-economic environment, and managed to grow by 6.5% to Rs. 86320.300 millions. Customer sentiments were affected by inflation, uncertain economic conditions and the significant movements in gold rate, resulting in poor walk-ins, which was more pronounced during the second half of 2013-14.
The Government and the Reserve Bank of India also initiated a slew of measures to contain the Current Account Deficit by increasing the customs duty on gold, discontinuation of credit on gold imports and importantly, restricting the quantity of gold imported by relating it to the quantum of gold exports. This resulted in severe supply constraints and consequently a sharp increase in gold prices in India compared to global rates as premium on gold purchased in India rose significantly.
The suspension of credit on gold purchases resulted in the Company resorting to borrowings to meet the working capital requirements of the Jewellery division. Consequent to the ban on Gold on lease facility by RBI, the Company also could not take advantage of a ‘natural hedge’ of gold rate provided by the Gold on Lease scheme and therefore had to hedge the gold price risk through the Commodity Exchanges. However, due to certain constraints in the Commodity Exchanges such as non-availability of longer term contracts and constraints in obtaining a higher hedging limit, the Company approached the Reserve Bank of India for ‘off shore’ hedging of gold. RBI had considered the Company’s request favorably and has granted their approval for the ‘off shore’ hedging. The Company is currently working on putting in place the process to implement the off shore hedging in consultation with its bankers.
The revenues of the Company’s Eyewear, Accessories and Precision Engineering Divisions cumulatively grew by 20.7% to Rs. 4997.900 millions.
Eyewear business grew the network by 72 stores to 280 in all and recorded growth of 17% in like to like stores.
The year witnessed expansion of the Company’s retail network with a net addition of 125 stores (1.80 lakh sq. ft.) across watches, jewellery and eyewear businesses. As at 31st March 2014, the Company had 1078 stores with over 1.45 million sq. ft. of retail space.
The Precision Engineering Division (PED) also continued its momentum during the year despite a challenging economic environment both within India and outside. During the year, significant investments were made in the manufacturing facilities of Watches, Jewellery and Precision Engineering Division.
INTERNATIONAL
OPERATIONS
The Company achieved exports of Rs. 2203.900 millions during the year comprising watches and precision engineered components registering a growth of 11.70% over the previous year.
The Company achieved Watches exports of Rs. 1230.900 millions, marginally crossing previous year’s turnover, which reported good profits on the back of good control on costs and fav+able exchange gains.
The international markets for watches witnessed tough retail sentiments on account of political, economical and social fluctuations across Middle East, SAARC and South East Asian countries. However, investments in brand initiatives including changing the retail landscape continued unabated. Distribution of watches forayed into two new markets, Philippines and Indonesia, while the Company entered Nigeria, the largest country in African continent.
Precision Engineering Division’s (PED) exports grew by 23.52% in 2013-14. The export revenue constituted 50% of the total revenue of PED. The business of PECSA, a contract manufacturing facility of PED grew substantially. The Aerospace, Oil and Gas and Engineering customers from USA almost doubled their off take. PECSA also added few new customers in the Aerospace segment which have been awarded profitable orders. Machine Building and Automation (MBA), another business of PED grew export revenue to 30 % of the MBA’s total income of Rs. 1000.000 millions. Special Purpose Machines (Latch Assembly Line, Blood Bag Assembly, Miniature Circuit Breaker Lines) were supplied to customers located in France, Romania and Indonesia.
FINANCE
Consequent to the ban on gold on lease by RBI, the Company resorted to borrowings during 2013-14 and the borrowings as at 31st March 2014 was Rs. 8062.700 millions. Borrowings during the year were raised from banks and from issue of commercial paper. Borrowings of Rs. 54.200 millions were repaid during the year. The Company incurred Rs. 2087.900 millions as capital expenditure in respect of refurbishment and expansion programmes at manufacturing facilities and retail outlets, IT hardware systems and land for new corporate office.
As on 31st March 2014, there were no fixed deposits held by the Company from the public, shareholders and employees other than unclaimed deposits amounting to Rs. 0.400 million. An amount of Rs. 4157.000 millions was transferred to the general reserve. During the year, the Company made payments aggregating Rs. 9737.800 millions by way of taxes (central, state and local) and duties as against Rs.11128.600 millions in the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS
THE ECONOMY
The effects of near term macro instability in the country appears to have diminished with the narrowing of twin deficits current account and fiscal, rebuilding of the foreign exchange reserves, strengthening of the rupee, all of which point towards disinflationary path for Indian economy. However, economic recovery is yet to materialize as more efforts from the Government are required in terms of removing structural impediments, building business confidence and creating environment in the country to support investment.
Growth in the Indian economy has had been spiraling downward from 9.5% in FY 2011 to around 4.5% in FY 2014. The view in business circles is that the negative growth appears to have bottomed out in Q2 and Q3 of FY 2014 recording 4.8% growth with clear signs of recovery yet to emerge.
BUSINESS OVERVIEW
The year gone by was the most challenging one in a long time as GDP growth slowed down with inflation at a high level. The Company recorded a 7.31% growth in revenue compared to the previous year with the Jewellery Division recording muted growth. PBT was 0.96% as overhead was higher than the previous year.
WATCHES AND
ACCESSORIES DIVISION
OVERVIEW:
The year 2013-14 was a challenging year for the Division. The economy remained sluggish through the year, consumer sentiment was poor, the retail market was over-run with products on deep discounts and watches as a category receded in consumer preference compared to other categories like apparel, mobile phones, laptops, etc.
In such a scenario, volume growth was hard to come by and the focus on higher value products led to an overall increase in sales value. Titan and its portfolio of brands, however, continued to dominate the watch market with a market share exceeding 65%.
OUTLOOK FOR 2014-15
Despite a challenging global environment, there is good opportunity for both businesses to address. Many global majors are looking at India strategically, both in terms of a lucrative market as well as a destination for cost competitive solutions. India being a big spender in defence is also creating good offset opportunities. The Division is ideally positioned to capitalize on these opportunities and is seeing a lot of customer interest for both businesses and has good visible pipeline of business. Both the businesses started the year with sizable order book ensuring further growth for 2014-15.
FIXED ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Office Equipment
·
Vehicles
PRESS RELEASE
TATA GROUP FIRMS LINE
UP RS 650000.000 MILLIONS CAPEX THIS FISCAL
Various firms of diversified Tata group have lined up capital expenditure of a total of over Rs 65,000 crore for the ongoing fiscal.
The capex is part of respective medium-term strategies of the different companies covering all the business sectors of the group, ranging from engineering, materials, information technology and communications, consumer products, services, energy to chemicals.
The majority of the investments will be by the group's top companies, Tata Steel, Tata Motors and Tata Consultancy Services (TCS) .
While Tata Steel would have a capex of nearly Rs 165000.000 millions in FY15, Tata Motors has earmarked around Rs 385000.000 millions, out of which Rs 350000.000 millions will be for its British arm JLR and Rs 35000.000 millions for its operations in India.
The group's information technology major TCS has also outlined a capex of Rs 40000.00 millions for this fiscal.
The spends are focused on already planned new products and services, as well as continuing development of new technologies and both for global and domestic operations.
When contacted, a spokesperson of Tata Sons – the promoter of major operating Tata companies -- said capital expenditure plans of group firms "are available, wherever so declared, in their individual financial and business related announcements".
"Tata companies always take a long term view of business and make required investments, depending on the needs of the geography concerned and company imperatives, on new products and services, research and technology development, and establishment or expansion of facilities and business enablers. We are, in general, optimistic about emerging trends," the spokesperson added.
Alsor read: Tata Group chief Cyrus Mistry meets Prime Minister Modi
The group's other firms, including Tata Housing, Tata Communications and Titan have made public their capex plans for the ongoing fiscal.
Tata Housing, real estate firm, has said it planned plans to invest Rs 3,000 crore this fiscal mostly on land acquisition, while Tata Communications has earmarked capex of around USD 250-300 million (nearly Rs 1,800 crore) for 2014-15.
In the beginning of the year, Tata Sons Chairman Cyrus P Mistry had written to the employees of the group that "to remain relevant in an increasingly competitive world, we shall put innovation capability at the core of each of our companies' operating structures and will invest in R&D".
He had also stressed on the need by the group companies to take into account their execution abilities while planning capex.
The Tata group has over 100 operating companies with
operations in more than 100 countries across six continents, and its companies
export products and services to 150 countries.
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) |
28536.600 |
|
|
|
b) Other Operating Income |
377.800 |
|
|
|
Total Income from Operations (Net) |
28914.400 |
|
|
2 |
Expenses |
|
|
|
|
a) |
Cost of Materials consumed |
18104.500 |
|
|
b) |
Purchase of stock in-trade |
3079.500 |
|
|
c) |
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
408.400 |
|
|
d) |
Employee benefit expenses |
1461.900 |
|
|
e) |
Depreciation and amortization expense |
243.400 |
|
|
f) |
Other expenses |
2123.800 |
|
|
Total Expenses |
25421.500 |
|
|
3 |
|
Profit /(Loss) from
operations before other income, finance costs and exceptional items (1-2) |
2500.400 |
|
4 |
Other Income |
254.000 |
|
|
5 |
|
Profit /(Loss) from
ordinary activities before finance costs and exceptional items (3+4) |
2754.400 |
|
6 |
Finance Costs |
349.700 |
|
|
7 |
Profit /(Loss) from ordinary activities before tax |
2404.700 |
|
|
8 |
Tax Expense |
|
|
|
|
-
Current
Tax |
661.300 |
|
|
|
-
Deferred
Tax |
(29.300) |
|
|
|
-
Tax
of earlier |
-- |
|
|
9 |
Net Profit /(Loss) from ordinary activities after tax
(9-10) |
1772.700 |
|
|
|
Paid up equity share
capital (Eq. shares of Rs.10/- each) |
887.800 |
|
|
|
Reserve excluding
revaluation reserves |
|
|
|
|
|
Earnings per share
(before/after extraordinary items) of
Rs.10/- each |
|
|
|
|
Basic |
2.00 |
|
|
|
Diluted |
|
|
|
|
|
|
|
A |
|
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
|
Public Shareholding |
|
|
|
|
- No. of Shares |
416778240 |
|
|
|
- Percentage of
Shareholding |
46.9% |
|
2 |
|
Promoters and promoter group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
2559589 |
|
|
|
- Percentage of shares ( as
a % of the total shareholding of the promoter and promoter group) |
0.5% |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
0.3% |
|
|
|
b) Non- encumbered |
|
|
|
|
- Number of shares |
468448331 |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
99.5% |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
52.8% |
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
|
B |
|
Investor Complaints |
|
|
|
|
Pending at the beginning
of the quarter |
1 |
|
|
|
Received during the
quarter |
3 |
|
|
|
Disposed during the
quarter |
3 |
|
|
|
Remaining unresolved at the
end of the quarter |
1 |
SEGMENTWISE
REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE THIRD QUARTER AND NINE MONTHS'
PERIOD ENDED 30TH JUN, 2014
|
|
Particulars |
Quarter
ended 30.06.2014 |
|
1. |
Segment Revenue (Sales and Other Operating Income) |
|
|
a) |
Watches |
4399.500 |
|
b) |
Jewellery |
23252.700 |
|
c) |
Other |
1278.300 |
|
d) |
Corporate
(Unallocated) |
237.900 |
|
|
TOTAL |
29168.400 |
|
|
|
|
|
2. |
Segment Results: [Profit/ (Loss) before
tax and interest from each segment] |
|
|
a) |
Watches |
482.100 |
|
b) |
Jewellery |
2177.600 |
|
c) |
Other |
4.800 |
|
|
TOTAL |
2664.500 |
|
|
Less: Financial Cost |
249.700 |
|
|
Other unallocable
expenditure, net of unallocable income |
(89.900) |
|
|
Total Profit/
Loss –before tax |
2404.700 |
|
|
|
|
|
3. |
Capital Employed: |
|
|
a) |
Watches |
6178.700 |
|
b) |
Jewellery |
13439.900 |
|
c) |
Other |
2145.200 |
|
d) |
Corporate (Unallocated) |
9362.800 |
|
|
TOTAL |
31126.600 |
NOTE:
1.
The name of the
Company was changed from Titan Industries Limited to Titan Company Limited with
effect from August 01, 2013.
2.
The Company's primary segments
consist of Watches, Jewellery and Others, where 'Others' include Eye wear,
Precision Engineering, Machine Building, Clocks and Accessories.
Due to
regulatory changes during 2013-14 in relation to purchase and funding of gold,
the Company has reviewed the definition of operating assets and operating
liabilities and as required by Accounting Standard (AS) 17 - Segment Reporting,
has revised the allocation of certain assets to the business segments to
reflect the current business practices.
3.
Consequent to the
applicability of the Companies Act, 2013 with effect from April 01, 2014,
depreciation for the quarter ended June 30, 2014 has been calculated based on
the useful life as specified under Schedule II of the said Act, except for
furniture & fixtures and vehicles
On account of the above, the depreciation for
the quarter ended June 30, 2014 debited to the statement of profit and loss is
higher by Rs. 740.21 lakhs.
In terms of Schedule II of the Companies Act,
2013 an amount of Rs. 415.24 lakhs (net of tax) has been debited to the opening
balance of the retained earnings as at April 01, 2014 towards the carrying
amount of assets, where the remaining useful life of these assets are Nil.
4.
The figures of the
previous period have been regrouped / recast, where necessary.
5.
The figures for the
quarter ended March 31, 2014 are the balancing figures between audited figures
in respect of full financial year and the year to date figures upto the third
quarter of the previous financial year.
6.
The financial results
were reviewed by the Board Audit Committee and were approved by the Board of
Directors at their meeting on August 01, 2014.
7.
The Auditors have
carried out a limited review of the financial results for the period ended on
June 30, 2014, as required by the Listing Agreements.
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. 60.99 |
|
|
1 |
Rs. 99.10 |
|
Euro |
1 |
Rs. 79.03 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
|
75 |
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.