MIRA INFORM REPORT
|
Report No. : |
316213 |
|
Report Date : |
07.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
IOL CHEMICALS AND PHARMACEUTICALS LIMITED |
|
|
|
|
Registered
Office : |
Trident Complex, Raikot Road, Barnala – 148101, Punjab |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
29.09.1986 |
|
|
|
|
Com. Reg. No.: |
16-007030 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 488.251 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24116PB1986PLC007030 |
|
|
|
|
IEC No.: |
3094001343 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JLDI00254C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCI1842A/ JLDI00254C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Speciality chemicals and active pharma ingredients. |
|
|
|
|
No. of Employees
: |
500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 5000000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having moderate track. The company possesses a moderate financial profile marked by acceptable
networth base coupled with infusion of funds from the part of promoters along
with moderate capital structure resulting from debt funded capacity expansion
in the past and working capital intensive nature of operations. Moreover, there appears an unfavorable gap between trade receivables
and payables which may certainly impact the liquidity position. Management has witnessed a decent sales revenue, whereas has reported
a low profit margin during FY14. The ratings also take into consideration, the potential of the
industry to emerge as a global hub, characterized by robust growth in the end
user segment and governments focus and push towards manufacturing and value
addition; further increasing the competitiveness of the Indian manufacturers
in the global market. Subsequently, the specially chemicals industry have received a major
chunk of FDI’s from large MNC’s which highlights the trend in which the
industry is gaining momentum in India. Trade relations are fair. Business is active. Payment terms are
reported as slow but correct. In view of experienced promoters, the company can be considered for
business dealings with slight 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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BB – [Long Term Bank Facilities] |
|
Rating Explanation |
Moderate risk of default |
|
Date |
14.08.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
A4 – [Short Term Bank Facilities]
|
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
14.08.2013 |
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 PARTED BY
|
Name : |
Mr. Rakesh Mahajan |
|
Designation : |
Chief Financial Officer |
|
Contact No.: |
91-161-2225531 |
|
Date : |
03.04.2015 |
LOCATIONS
|
Registered Office / Factory 1 : |
Trident Complex, Raikot Road, Barnala – 148101, Punjab, India |
|
Tel. No.: |
91-1679-244701-07 / 285285 |
|
Fax No.: |
91-1679-244708 / 285292 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Head / Corporate Office : |
85 Industrial Area A, Ludhiana – 141003, Punjab, India |
|
Tel. No.: |
91-161-2225531-35 |
|
Fax No.: |
91-161-2608184 / 2608784 / 2226929 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
Village Fatehgarh Chhana, Mansa Road, Barnala – 148101, Punjab, India |
|
Tel. No.: |
91-1679-285285-86 |
|
Fax No.: |
91-1679-285292 |
|
E-Mail : |
|
|
|
|
|
Branch Office : |
102, 1st Floor, Royal Grace, Road No. 2, Lokmanya Tilak Colony,
B/H Swaminarayan Mandir, Dadar (East), Mumbai – 400014, Maharashtra, India |
|
Tel. No.: |
91-22-24166656 / 24146654 |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Varinder Gupta |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Vijay Kumar Garg |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Dr. M A Zahir |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Chandra Mohan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Yogesh Goel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Sandhya Mehta |
|
Designation : |
Director (w.e.f. 22 August 2014) |
|
|
|
|
Name : |
Mr. Vijay Singla |
|
Designation : |
Director (Works) |
|
|
|
|
Audit and
Risk Management Committee : |
|
|
|
|
|
Stakeholders’
Relationship Committee : |
|
|
|
|
|
Nomination
and Remuneration Committee : |
|
KEY EXECUTIVES
|
Name : |
Mr. Krishan Singla |
|
Designation : |
Vice President and Company Secretary |
|
|
|
|
Name : |
Mr. Rakesh Mahajan |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Ms. Shana |
|
Designation : |
Accounts Department |
SHAREHOLDING PATTERN
As on 31.12.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
1159265 |
2.43 |
|
|
21240001 |
44.57 |
|
|
22399266 |
47.00 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
22399266 |
47.00 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
10200 |
0.02 |
|
|
10200 |
0.02 |
|
|
|
|
|
|
8589124 |
18.02 |
|
|
|
|
|
|
2552285 |
5.36 |
|
|
4377513 |
9.19 |
|
|
9727114 |
20.41 |
|
|
26539 |
0.06 |
|
|
9700575 |
20.36 |
|
|
25246036 |
52.98 |
|
Total Public
shareholding (B) |
25256236 |
53.00 |
|
Total (A)+(B) |
47655502 |
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) |
47655502 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Speciality chemicals and active pharma ingredients. |
|
|
|
|
Products : |
|
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
Not Available |
|
|
|
|
Imports : |
Not Available |
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Credit (30/60/90 Days) |
|
|
|
|
Purchasing : |
Cash and Credit (30/60/90 Days) |
PRODUCTION STATUS = NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Customers : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
No. of Employees : |
500 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|
Cost Auditors : |
|
|
Name : |
Ramanath Iyer and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Statutory Auditors : |
S C Vasudeva and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Enterprises over which Key Management Personnel (KMP) and relative of
such personnel is able to exercise significant influence or control: |
* Enterprise having significant influence over the Company. |
CAPITAL STRUCTURE
As on 30.09.2014
Authorised Capital: Rs.800.000 Million
Issued, Subscribed & Paid-up Capital: Rs.476.555
Million
As on 31.03.2014
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32000000 |
Equity Shares |
Rs.10/-each |
Rs.320.000 Million |
|
22000000 |
Non-cumulative preference shares |
Rs.10/-each |
Rs.220.000 Million |
|
|
Total |
|
Rs.540.000
Million |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
28815164 |
Equity Shares |
Rs.10/-each |
Rs.288.151
Million |
|
5000000 |
7% Non-cumulative preference shares |
Rs.10/-each |
Rs.50.000
Million |
|
15010000 |
1% Non-cumulative preference shares |
Rs.10/-each |
Rs.150.100
Million |
|
|
Total |
|
Rs.488.251 Million |
Reconciliation of the number of shares and the amount outstanding at the
beginning and at the end of the reporting period
|
PARTICULAR |
AS ON 31.03.2014 |
|
|
Equity Shares |
No. of Shares
Held |
Rupees |
|
At the beginning of the reporting period |
26151164 |
261511640 |
|
Add: Issued during the year |
2664000 |
26640000 |
|
Outstanding at the end of the reporting period |
28815164 |
288151640 |
|
PARTICULAR |
AS ON 31.03.2014 |
|
|
Preference Shares |
No. of Shares
Held |
Rupees |
|
At the beginning of the reporting period |
5000000 |
50000000 |
|
Add: Issued during the year |
15010000 |
150100000 |
|
Outstanding at the end of the reporting period |
20010000 |
200100000 |
Terms/rights attached to equity shares
The Company presently has one class of equity
shares having a par value of Rs.10/- each. Each holder of equity shares is
entitled to one vote per share. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General
Meeting.
In the event of liquidation of the Company,
the holders of equity shares will be entitled to receive any of the remaining
assets of the Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held by the
shareholders.
The Company has not declared dividend during
the period ended 31 March 2014.
Increase in equity share capital
The Company has issued 26,64,000 equity shares
of face value of Rs.10/- each at a premium of Rs.68/- per share aggregating to
` 20,77,92,000 on 5 November 2013 to Promoter Group entities on conversion of
unsecured loan, brought in by them.
Consequent upon the issue of the above 2664000
equity shares, the total paid-up capital of the Company stands increased to
28815164 fully paid equity shares of Rs.10/- each.
Terms/rights attached to preference shares
7% Non-Cumulative Preference Shares 5000000 of Rs.10/- each
The Company has extended the redemption of
5000000 7% non-cumulative redeemable preference shares of Rs.10/- each from 20
March 2014 to 30 June 2015 with an option to convert these preference shares
into equity shares at the price calculated under SEBI formula. The earlier date
of redemption is 30 June 2015 (Previous year 20 March 2014)
The preference shares shall carry a right to a
non-cumulative preference dividend of 7% per annum, in case the dividend not
declared for any year, it will cease to accrue and lapse and will not be
cumulated and carry forward. The preference shareholder shall have preferential
right of repayment of amount of capital.
1% Non-Cumulative Preference Shares 15010000 of Rs.10/- each
The Company has allotted 15010000, 1% non-cumulative
redeemable preference shares of Rs.10/- each to the promoter/promoter group
companies. These preference shares shall be redeemable at par on expiry of 10
years from the date of allotment i.e. 5 November 2013.
The preference shares shall carry a right to a
non-cumulative preference dividend of 1% per annum, in case the dividend not
declared for any year, it will cease to accrue and lapse and will not be
cumulated and carry forward. The preference shareholders shall have
preferential right of repayment of amount of capital.
Details of shares held by holding company or the ultimate holding
company or their subsidiaries and associates
There is no holding company of the Company and
therefore no subsidiary/ associate of holding /ultimate holding Company.
Aggregate number and class of shares alloted as fully paid up pursuant
to contract(s) without payment being received in cash, bonus shares and shares
bought back for the period of 5 years immediately preceding the balance date:
|
|
Aggregate number
of shares As at 31 March 2014 |
|
Equity Shares alloted as fully paid up
pursuant to contract (s) |
--- |
|
without payment being received in cash |
--- |
|
Equity Shares alloted as fully paid up by
way of bonus shares |
--- |
|
Equity Shares bought back by the Company |
--- |
Detail of shares held by each shareholder holding more than 5% shares
|
PARTICULAR |
AS ON 31.03.2014 |
|
|
Class of share / Name of the shareholder |
No. of Shares
Held |
% Share Holding |
|
Equity Shares |
|
|
|
Mayadevi Polycot Limited |
10006323 |
34.73 |
|
IndiaSTAR (Mauritius) Limited |
3806664 |
13.21 |
|
NM Merchantiles Limited |
3384500 |
11.75 |
|
G Consultants and Fabricators Limited |
1500000 |
5.21 |
|
|
|
|
|
Preference
Shares |
|
|
|
7%
non-cumulative preference shares |
|
|
|
Trident Limited |
5000000 |
100.00 |
|
1%
non-cumulative preference shares |
|
|
|
NM Merchantiles Limited |
4735000 |
31.55 |
|
IOL Life sciences Limited |
4265000 |
28.41 |
|
NCG Enterprises Limited |
6010000 |
40.04 |
Foreign Currency Convertible Bonds
The Company has issued zero coupon unsecured
foreign currency convertible bonds (FCCB) aggregating to US $ 7 Million.
The Company has option to convert all outstanding bonds into equity
shares at the prevailing conversion price i.e. Rs.78 per share at any time on
or after 28 November 2014 but on or before 28 May 2015.
The bond holders have also option to convert
into equity shares of the Company at price of Rs.78 per share (subject to
adjustment, if any) with a fixed exchange rate of Rs.47.57 per US $ at any time
on or after 28 May 2010 but on or before 28 May 2015 subject to satisfaction of
certain conditions.
FINANCIAL DATA
[All figures are
in Rupees Million]
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 |
488.251 |
311.512 |
307.167 |
|
(b) Reserves &
Surplus |
1604.248 |
1418.434 |
1424.515 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
4.345 |
|
Total Shareholders’ Funds
(1) + (2) |
2092.499 |
1729.946 |
1736.027 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
2160.105 |
2868.414 |
2698.849 |
|
(b) Deferred tax
liabilities (Net) |
121.388 |
103.643 |
92.883 |
|
(c) Other long term
liabilities |
340.095 |
284.016 |
88.316 |
|
(d) long-term provisions |
3.024 |
1.260 |
1.178 |
|
Total Non-current
Liabilities (3) |
2624.612 |
3257.333 |
2881.226 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
969.568 |
971.580 |
764.777 |
|
(b) Trade payables |
1133.745 |
953.764 |
794.066 |
|
(c) Other current
liabilities |
585.703 |
354.570 |
692.895 |
|
(d) Short-term provisions |
4.897 |
2.149 |
0.526 |
|
Total Current Liabilities
(4) |
2693.913 |
2282.063 |
2252.264 |
|
|
|
|
|
|
TOTAL |
7411.024 |
7269.342 |
6869.517 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4103.510 |
4303.047 |
4619.001 |
|
(ii) Intangible Assets |
2.529 |
1.099 |
0.754 |
|
(iii) Capital
work-in-progress |
330.582 |
315.071 |
123.756 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
131.058 |
119.273 |
110.109 |
|
(e) Other Non-current
assets |
36.103 |
20.626 |
23.373 |
|
Total Non-Current Assets |
4603.782 |
4759.116 |
4876.993 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1922.261 |
1634.742 |
1317.660 |
|
(c) Trade receivables |
492.561 |
358.247 |
215.927 |
|
(d) Cash and cash
equivalents |
114.475 |
123.935 |
86.954 |
|
(e) Short-term loans and
advances |
277.945 |
393.302 |
371.983 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
2807.242 |
2510.226 |
1992.524 |
|
|
|
|
|
|
TOTAL |
7411.024 |
7269.342 |
6869.517 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
5635.012 |
4815.110 |
4706.825 |
|
|
Other Income |
13.066 |
25.289 |
23.341 |
|
|
TOTAL |
5648.078 |
4840.399 |
4730.166 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
3979.152 |
3316.834 |
3251.644 |
|
|
Purchases of
Stock-in-Trade |
0.000 |
23.486 |
0.371 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(279.902) |
(340.539) |
(252.494) |
|
|
Employees benefits
expense |
270.769 |
220.769 |
201.371 |
|
|
Other expenses |
707.494 |
704.127 |
819.965 |
|
|
TOTAL |
4677.513 |
3924.677 |
4020.857 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
970.565 |
915.722 |
709.309 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
603.439 |
572.399 |
431.973 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
367.126 |
343.323 |
277.336 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
316.303 |
313.740 |
239.360 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
50.823 |
29.583 |
37.976 |
|
|
|
|
|
|
|
Less |
TAX |
17.829 |
13.698 |
(9.556) |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
32.994 |
15.885 |
47.532 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
1262.827 |
905.360 |
988.095 |
|
|
TOTAL EARNINGS |
1262.827 |
905.360 |
988.095 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
60.434 |
89.234 |
304.426 |
|
|
Capital Goods |
0.000 |
0.000 |
18.762 |
|
|
TOTAL IMPORTS |
60.434 |
89.234 |
323.188 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
1.15 |
0.61 |
1.85 |
QUARTERLY RESULTS
|
Particulars (Rs.
In Million) |
30.06.2014 1st Quarter |
30.09.2014 2nd Quarter |
31.12.2014 3rd Quarter |
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
1211.800 |
1216.100 |
679.600 |
|
Total Expenditure |
963.200 |
1147.400 |
782.100 |
|
PBIDT (Excl OI) |
248.700 |
68.800 |
(102.600) |
|
Other Income |
00.100 |
0.100 |
0.100 |
|
Operating Profit |
248.700 |
68.800 |
(102.500) |
|
Interest |
151.500 |
151.500 |
140.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
97.200 |
(82.700) |
(243.200) |
|
Depreciation |
78.200 |
60.500 |
77.800 |
|
Profit Before Tax |
19.100 |
(143.100) |
(321.000) |
|
Tax |
6.600 |
(45.600) |
(20.000) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
12.500 |
(97.500) |
(300.900) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
12.500 |
(97.500) |
(300.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin PAT / Sales |
(%) |
0.58
|
0.32 |
1.00 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
17.22
|
19.01 |
15.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.72 |
0.43 |
0.56 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02 |
0.02 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.50 |
2.22 |
2.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04 |
1.10 |
0.88 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
307.167 |
311.512 |
488.251 |
|
Reserves & Surplus |
1424.515 |
1418.434 |
1604.248 |
|
Net worth |
1731.682 |
1729.946 |
2092.499 |
|
|
|
|
|
|
long-term borrowings |
2698.849 |
2868.414 |
2160.105 |
|
Short term borrowings |
764.777 |
971.580 |
969.568 |
|
Total borrowings |
3463.626 |
3839.994 |
3129.673 |
|
Debt/Equity ratio |
2.000 |
2.220 |
1.496 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
4706.825 |
4815.110 |
5635.012 |
|
|
|
2.301 |
17.028 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
4706.825 |
4815.110 |
5635.012 |
|
Profit |
47.532 |
15.885 |
32.994 |
|
|
1.01% |
0.33% |
0.59% |
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 |
Yes |
|
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 Punjab And Haryana
(Chandigarh) |
|||
|
Case Details For Case CA-346-2014 |
|||
|
Diary Number |
1198095 |
District |
OTHER-DISTRICTS |
|
Category |
--- |
Main Case Detail |
CP-117-2014 |
|
Party Detail |
LAB GUARD INDIA PRIVATE LIMITED V/S IOL CHEMICALS AND PHARMACEUTICALS LIMITED |
||
|
Advocate Name |
RAGHUJEET SINGH MADAN |
List Type |
|
|
Status |
PENDING |
Next date |
--- |
|
|
|||
|
Case Listing Details |
|||
|
No Listing Data Available |
|||
|
Judgment Details For Case: CA-346-2014
|
|||
|
Order Date |
Order Type |
Bench |
|
|
No Judgment/Order Found |
|||
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10559118 |
23/03/2015 |
5,668,100,000.00 |
Punjab National Bank |
Large Corporate Branch, 1st Floor, Bhagwati Tower, R K Road, Ludhiana, Punjab - 141003, INDIA |
C49099567 |
|
2 |
10544515 |
31/12/2014 |
651,200,000.00 |
Punjab National Bank |
Large Corporate Branch, 1st Floor, Bhagwati Tower, R K Road, Ludhiana, Punjab - 141003, INDIA |
C41181785 |
|
3 |
10509239 |
31/12/2014 * |
1,624,000,000.00 |
Punjab National Bank |
Large Corporate
Branch, 1st Floor,Bhagwati Tower, |
C41183401 |
|
4 |
10314198 |
13/03/2013 * |
400,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B70894365 |
|
5 |
10250399 |
02/02/2013 * |
150,000,000.00 |
Allahabad Bank |
I.I.F.B Cheema Chowk, Ludhiana, Punjab - 141003, INDIA |
B68495779 |
|
6 |
10248563 |
23/06/2011 * |
180,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B16710824 |
|
7 |
10244239 |
11/01/2013 * |
70,000,000.00 |
Oriental Bank of Commerce |
Overseas Branch,Jandu Tower,, G.T. Road ,Miller Ganj,, Ludhiana, Punjab - 141003, INDIA |
B67305797 |
|
8 |
10241454 |
31/12/2014 * |
500,000,000.00 |
Punjab National Bank |
Large Corporate
Branch, 1st Floor,Bhagwati Tower, |
C41187519 |
|
9 |
10175807 |
21/09/2013 * |
200,000,000.00 |
Oriental Bank of Commerce |
Overseas Branch,
Jandu Tower,, G. T. Road, Miller |
B85776664 |
|
10 |
10168109 |
18/02/2013 * |
190,400,000.00 |
State Bank of India |
College Road,,
Barnala, Barnala, Punjab - 148001, |
B69053304 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Million) |
31.03.2013 (Rs.
in Million) |
|
LONG TERM
BORROWINGS |
|
|
|
Other loans and
advances |
|
|
|
Foreign Currency Convertible Bonds |
420.698 |
380.725 |
|
From Related Parties |
100.276 |
353.066 |
|
From Others |
0.000 |
105.055 |
|
SHORT TERM
BORROWINGS |
|
|
|
Loan repayable on demand |
|
|
|
From Banks |
25.000 |
0.000 |
|
Total |
545.974 |
838.846 |
PERFORMANCE REVIEW
The Company, during financial year 2013-14, has clocked a growth of 16.70% in gross revenue, which has grown to Rs.6260.400 Million from the gross revenue of Rs.5364.300 Million in the previous year. The profit before depreciation interest and tax (PBDIT) to net revenue has decreased from 18.92% to 17.18%. The Company has earned profit before tax (PBT) of Rs.50.800 Million during the year under review against Rs.29.600 Million during the previous year. Higher PBT is mainly due to increase in sale of the Company and improved in operation efficiency during the year.
AWARDS
The Company has been awarded with “1st prize in National Energy Conservation Award” in Drugs and Pharmaceuticals sector and with “2nd prize in National Energy Conservation Award” in Chemicals sector by the Ministry of Power, Government of India. The Company has been awarded the prize consecutively for eight years by the Government of India.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Indian Industrial Sector and Chemical Industry
The chemical industry, which includes basic chemicals and its products, petrochemicals, fertilizers, paints and varnishes, gases, soaps, perfumes and toiletries and pharmaceuticals is one of the most diversified of all industrial sectors covering thousands of commercial products. It plays an important role in the overall development of the Indian economy. Rapid growth is expected in India as well, with predicted annual growth above 9 per cent per year in the period 2012 to 2014, and above 8 percent per year in the period 2015 to 2021.
With current initiatives of industry and government, the Indian chemical industry could grow at 11% p.a. to reach size of $224 billion by 2017. However, the industry could aspire to grow much more and its growth potential is limited only by its aspirations. In an optimistic scenario, high end–use demand based on increasing per capita consumption, improved export competitiveness and resultant growth impact for each sub-sector of the chemical industry could lead to an overall growth rate greater than 15% p.a. and a size of $ 290 billion by 2017.
Pharmaceutical
Industry
India is among the most significant emerging markets for the global pharma industry, given that it will feature among the world’s top 10 sales markets by 2020. Currently, it is regarded as one of the fastest-growing pharma industries globally, primarily driven by a large population, evolving patient demographics, increasing health care expenditure, growing urbanization, rising life expectancy, and active private-sector participation.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2014
Rs. In Million
|
Particulars |
Quarter ended |
Nine Months ended |
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
Income from Operations |
|
|
|
|
(a) Net sates/income from operations (Net of excise duty) |
677.949 |
1212.405 |
3098.979 |
|
(b) Other Operating Income |
1.634 |
3.687 |
8.528 |
|
Total income from operations (net) |
679.583 |
1216.092 |
3107.507 |
|
Expenses |
|
|
|
|
(a) Cost of materials consumed |
536.464 |
942.341 |
2293.443 |
|
(b) Purchases of stock-in trade |
0.000 |
0.000 |
0.000 |
|
(c) Changes in inventories of finished goods. work-in-progress and stock in trade |
(4.010) |
(29.086) |
(103.721) |
|
(d) Employee benefits expense |
60.803 |
64.041 |
189.781 |
|
(e) Depreciation and Amortization Expenses |
77.797 |
60.477 |
216.426 |
|
(f) Other Expenses |
188.874 |
170.047 |
513.145 |
|
Total expenses |
859.928 |
1207.820 |
3109.074 |
|
Profit/ (Loss) from operations before
other Income, finance costs and exceptional Items |
(180.345) |
8.272 |
(1.567) |
|
Other Income |
0.045 |
0.045 |
0.135 |
|
Profit/ (Loss) from operations before
other income, finance costs and exceptional items |
(180.300) |
8.317 |
(1.432) |
|
Finance Costs |
140.655 |
151.457 |
443.579 |
|
Profit/ (Loss) from ordinary activities after
finance cost but before exceptional items |
(320.955) |
(143.140) |
(445.011) |
|
Exceptional items |
0.000 |
0.000 |
0.000 |
|
Profit/ (Loss) from ordinary activities
before tax |
(320.955) |
(143.140) |
(445.011) |
|
Tax expenses |
(20.017) |
(45.614) |
(59.059) |
|
Net Profit / (Loss) from ordinary
activities after tax |
(300.938) |
(97.526) |
(385.952) |
|
Extraordinary item (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
Net Profit / (Loss) for the period |
(300.938) |
(97.526) |
(385.952) |
|
Paid up equity share capital (Face Value of Rs10/- each) |
476.555 |
393.116 |
476.555 |
|
Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year |
|
|
|
|
Earnings per share (before extraordinary items) of Rs.10/- each (not annualized): |
|
|
|
|
(a) Basic |
(7.88) |
(2.88) |
(10.34) |
|
(b) Diluted |
(7.56) |
(2.88) |
(9.66) |
|
(c) Cash |
(6.55) |
(2.71) |
(6.13) |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
Public Shareholding |
|
|
|
|
- Number of shares |
25256236 |
16912325 |
25256236 |
|
- Percentage of shareholding |
53.00 |
43.02 |
53.00 |
|
Promoters and Promoter group shareholding |
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
- Number of shares |
--- |
--- |
--- |
|
- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group) |
--- |
--- |
--- |
|
- Percentage of shares (as a % of the total Share Capital of the Company) |
--- |
--- |
--- |
|
b) Non Encumbered |
|
|
|
|
- Number of shares |
22399266 |
22399266 |
22399266 |
|
- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage of shares (as a % of the total Share Capital of the Company) |
47.00 |
56.98 |
47.00 |
|
INVESTOR COMPLAINTS |
3 Months ended 31 December 2014 |
|
Pending at the beginning of the quarter |
NIL |
|
Received during the quarter |
NIL |
|
Disposed of during the quarter |
NIL |
|
Remaining unresolved at the end of the quarter |
NIL |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSES 41 OF THE LISTING AGREEMENT
(Rs. In Million)
|
Particulars |
Quarter
Ended |
Nine
Months Ended |
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
SEGMENT REVENUE |
|
|
|
|
Chemicals |
395.154 |
847.154 |
2032.480 |
|
Drugs |
414.187 |
575.498 |
1594.822 |
|
Unallocated |
13.812 |
1.849 |
20.924 |
|
TOTAL |
823.153 |
1424.501 |
3648.226 |
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
143.570 |
208.409 |
540.719 |
|
|
|
|
|
|
NET SALES / INCOME
FROM OPERATION |
679.583 |
1216.092 |
3107.507 |
|
|
|
|
|
|
SEGMENT RESULTS |
|
|
|
|
PROFIT/LOSS BEFORE
TAX AND INTEREST FROM EACH SEGMENT |
|
|
|
|
Chemicals |
(201.033) |
(95.461) |
(307.819) |
|
Drugs |
7.984 |
100.828 |
286.815 |
|
TOTAL |
(193.049) |
5.367 |
(21.004) |
|
|
|
|
|
|
Less :Interest |
140.655 |
151.457 |
443.579 |
|
Less : Other Unallocable Expenses and Extra Ordinary Items Net of Unallocable Income |
(12.749) |
(2.950) |
(19.572) |
|
NET PROFIT (+) /
LOSS(-) BEFORE TAX |
(320.955) |
(143.140) |
(445.011) |
|
|
|
|
|
|
CAPITAL EMPLOYED |
|
|
|
|
Chemicals |
774.965 |
808.623 |
774.965 |
|
Drugs |
1431.142 |
1265.180 |
1431.142 |
|
Unallocated (Including
capital work in progress) |
184.793 |
156.410 |
184.793 |
|
TOTAL |
2390.900 |
2230.213 |
2390.900 |
Note:
- The above results have been reviewed by the Audit and Risk Management Committee and were considered and approved by the Board of the Directors at their meeting held on 13th February 2015.
- Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing from 1st April 2014, the Company has recalculated the remaining useful life of fixed assets in accordance with provisions of Schedule II to the Act, In case of Fixed assets which have already completed their useful life in terms of Schedule I! of the Act, the carrying value (net of residual value) of such assets as at 1st April 2014 amounting to Rs.25.618 Million (net of deferred tax) has been adjusted to Retained Earnings and in case of other fixed assets the carrying value (net of residual value) is being depreciated as per straight line method over the re-calculated remaining useful life. The depreciation and amortization expense charged for the nine months ended 31 December 2014 would have been higher by Rs. 196.01 Lacs, had the company continued with the previously prescribed depreciation rates as per Schedule-XlV of Companies Act. 1956.
- During the quarter the Company has allotted 2450000 equity shares of Rs 10/- each at a premium of Rs 18/- per share to the non-promoters, on exercise of the option attached with warrants allotted on 04 July 2014 and 5893911 equity shares of face value of Rs 10/- each on conversion of US$ seven million Zero Coupon Unsecured Foreign Currency Convertible Bonds. The paid up capital of the company increased from 39311.591 equity shares of Rs10/- each to 47655502 equity shares of Rs 10/- each.
- Previous period's figures have been regrouped/ reclassified wherever necessary.
- Limited review of the above unaudited financial results of the Company in term of Clause 41 of the Listing Agreement has been carried out by the Statutory Auditors of the Company.
FIXED ASSETS
- Land
and Buildings
- Plant
and Machinery
- Furniture
and Fixtures
- Vehicles
- Buildings
- Office
Equipments
Website Details:
Press Release:
IOL CHEMICALS AND PHARMACEUTICALS WINS NATIONAL ENERGY CONSERVATION
AWARD 2013
Ludhiana, December 17, 2013
IOL Chemicals and Pharmaceuticals Limited
(IOLCP), products of APIs; Ibuprofen and specialty chemicals has announced that
the company has once again won the National Energy Conservation Award 2013. The
company has won the First PRIZE in Drugs and Pharmaceuticals Sector and Second
PRIZE in Chemical Sector for its continued efforts towards new technology
implementation so as to conserve energy resources of the country. It is worth
noting that winning the National Energy Conservation Award 2013 has enabled
IOLCP to hold the distinction to have won the National Energy Conservation
Awards consecutively for nine years. IOLCP has won the second prize of National
Energy Conservation Award every year since 2005.
Mr. Vikas Gupta, Deputy Manager, IOLCP
received the award in Drugs and Pharmaceuticals Sector and Mr. Vijay Singla,
Director (Works), received the award in Chemical Sector from Mr. Pranab
Mukherjee, President of India at a
special felicitation ceremony held on December 16, 2013, National Energy
Conservation Day, at New Delhi.
The National Energy Conservation Awards are
given every year by the Ministry of Power, Government of India, to industrial
units, office buildings, hotels and hospitals, zonal railways, state designated
agencies, municipalities, and manufacturers of BEE Star labeled appliances that
have made commendable efforts in energy conservation in their respective
fields.
Apart from the energy conservation initiatives
at IOLCP, the company is also actively involved in protection and preservation
of the environment in and around its manufacturing units. The company’s
environmental policy includes sustained efforts towards minimizing adverse environmental
impact by controlling emission, effluents and waste generation at its
manufacturing units in order to prevent pollution and reduce its carbon
footprint.
The company also emphasizes on optimum
utilization of resources through model business practices that includes
diligent recovery of solvents, improvement in the yields, energy and water. The
company also invests regularly in continuously upgrading its Environment
Management System (EMS) and its operating standards to comply with applicable
legalization and regulations.
About IOL Chemicals and Pharmaceuticals Limited
Company was established in 1986, IOLCP is
India’s one of the leading generic pharmaceutical companies, and is significant
player in the Organic chemicals space. IOLCP has wide presence across major
therapeutic categories like, Pain Management, Anti-diabetic, Anti-hypertensive,
Anti Convulsants, etc.
IOLCP’s product portfolio includes APIs;
Ibuprofen, specialty chemicals such as Ethyl acetate, Acetic anhydride, ISO
Butyl Benzene, Mono Chloro Acetic Acid and Acetyl Chloride.
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.15 |
|
|
1 |
Rs.92.73 |
|
Euro |
1 |
Rs.68.23 |
INFORMATION DETAILS
|
Information Gathered
by : |
PPT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
PNM |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILITY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
36 |
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.