MIRA INFORM REPORT
|
Report No. : |
352080 |
|
Report Date : |
01.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN POLYTEX LIMITED |
|
|
|
|
Registered
Office : |
341, K-1, Mundian Khurd, P.O. Sahabana, Vardhman Park, Chandigarh Road,
Ludhiana - 141123, Punjab |
|
Tel. No.: |
91-161-2685301/305 |
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|
|
Country : |
India |
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|
Financials (as
on) : |
31.03.2015 |
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|
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Date of
Incorporation : |
20.08.1980 |
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|
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Com. Reg. No.: |
16-004242 |
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Capital Investment
/ Paid-up Capital : |
Rs. 223.254 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17122PB1980PLC004242 |
|
|
|
|
IEC No.: |
3095005318 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AMRV10742E/ PTLV10260F/ AMRV10633A/ PTLV10530C/ AMRV10685D/ JLD00443C/
JLDV00837E/ PTLV10422G |
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|
|
|
PAN No.: [Permanent Account No.] |
AAACV5821H |
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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
: |
Subject is engaged in manufacturing and exporting of yarn and garments
and also doing real estate business for residential and commercial premises. |
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No. of Employees
: |
4000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (11) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 3700000 |
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|
|
|
Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
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Comments : |
Subject is a part of “Oswal” group and it is operating in two segments
i.e. Textile and Real estate. As per the market sources, we found that the company has delayed
payment of foreign currency convertible bonds (FCCBs) due to its stretched
liquidity and remains dependent on the promoters support for the repayment. The company has incurred losses from its operations along with
leveraged capital structure in FY15. However, business is active. Payment terms are reported to be slow and
delayed. In view of aforesaid, the company can be considered for business
dealings with fully safe and secured 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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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 |
ICRA |
|
Rating |
Long Term-Fund Based Limits (D) |
|
Rating Explanation |
Lowest credit quality very low prospects of recovery. |
|
Date |
October, 2015 |
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
31-03-2015.
INFORMATION PARTED BY
|
Name : |
Mr. R.K. Sharma |
|
Designation : |
Admin Accountant |
|
Contact No.: |
91-161-2685305 |
LOCATIONS
|
Registered Office/ Corporate Office/ Factory : |
341 K-1, Mundian Khurd, P.O. Sahabana, Vardhman Park, Chandigarh Road,
Ludhiana - 141123, Punjab, India |
|
Tel. No.: |
91-161-2685301 / 305 / 6629888 / 6629990 |
|
Fax No.: |
91-161-6629988 |
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E-Mail : |
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Website : |
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Locality : |
Locality |
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|
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Administrative/ Branch Office
1: |
305, 3rd Floor, Ansal Bhawan, 16, Kasturba Gandhi Marg, New
Delhi – 110001, India |
|
Tel. No.: |
91-11-23311582/ 23312478 |
|
Fax No.: |
91-11-23312477 |
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Factory 1 : |
Badal Road, Bathinda - 151005, Punjab, India |
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Factory 2 : |
Vinayak Textile Mills (Spinning Unit), D-295/1, Phase VIII, Focal
Point, Ludhiana - 141010, Punjab, India |
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Factory 3 : |
Vinayak Textile Mills (Dyeing Unit), D-295/1, Phase VIII, Focal Point,
Ludhiana - 141010, Punjab, India |
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Factory 4 : |
Village Nangal Nihla/ Upperla, Swarghat Road, Nalagarh – 174101, Himachal Pradesh, India |
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Factory 5 : |
Amkryon International, Phase VIII, Focal Point, Ludhiana – 141010, Punjab, India |
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Branch Office 2: |
B/31/5436, St. No. 0, Vishwkarma Nagar, Tajpur Road, Ludhiana – 141008, Punjab, India |
DIRECTORS
AS ON: 31.03.2015
|
Name : |
Mr. Ashok Kumar Oswal |
|
Designation : |
Chairman and Managing Director |
|
Date of Appointment : |
01.04.2011 |
|
DIN No.: |
00009403 |
|
|
|
|
Name : |
Mr. Adish Oswal |
|
Designation : |
Executive Director |
|
Date of Appointment : |
10.04.2014 |
|
DIN No.: |
00009710 |
|
|
|
|
Name : |
Mr. Ashok Kumar Goyal |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
23.10.1959 |
|
Date of
appointment : |
30.09.2013 |
|
DIN No.: |
06676556 |
|
|
|
|
Name : |
Dr. Balbir Singh Bhatia |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
20.07.1942 |
|
Date of Appointment : |
30.09.2014 |
|
DIN No.: |
00551715 |
|
|
|
|
Name : |
Mr. Ajay Chaudhry |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
19.10.1953 |
|
Date of Appointment : |
30.09.2014 |
|
DIN No.: |
00055733 |
|
|
|
|
Name : |
Mr. Manohar Dattatraya Kanitkar |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
11.12.1945 |
|
Date of Appointment : |
30.09.2014 |
|
DIN No.: |
00551803 |
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|
|
|
Name : |
Mrs. Rakhi Oswal |
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Designation : |
Director |
|
Date of Birth/Age : |
03.09.1981 |
|
Date of
appointment : |
30.09..2014 |
|
DIN No.: |
00009682 |
KEY EXECUTIVES
|
Name : |
Mr. Parvinder Singh |
|
Designation : |
Chief Financial Officer |
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|
|
|
Name : |
Mr. Sushil Sharma |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
AS ON: 30.09.2015
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
||
|
|
|
|
|
|
638650 |
2.87 |
|
|
12766002 |
57.27 |
|
|
13404652 |
60.13 |
|
|
|
|
|
Total shareholding of
Promoter and Promoter Group (A) |
13404652 |
60.13 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
1800 |
0.01 |
|
|
1134 |
0.01 |
|
|
551200 |
2.47 |
|
|
450 |
0.00 |
|
|
450 |
0.00 |
|
|
554584 |
2.49 |
|
|
|
|
|
|
4413317 |
19.80 |
|
|
|
|
|
|
1434017 |
6.43 |
|
|
2459492 |
11.03 |
|
|
24895 |
0.11 |
|
|
24895 |
0.11 |
|
|
8331721 |
37.38 |
|
Total Public shareholding
(B) |
8886305 |
39.87 |
|
Total (A)+(B) |
22290957 |
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) |
22290957 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in manufacturing and exporting of yarn and garments
and also doing real estate business for residential and commercial premises. |
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Products/Services : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
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Products : |
Yarn and Garment |
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Countries : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
Advance Payment, L/C, Cheque and Credit |
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Purchasing : |
Advance Payment, L/C, Cheque and Credit |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
Retailers and End Users
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No. of Employees : |
4000 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Million)
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Auditors : |
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|
Name : |
S.S. Kothari Mehta and Company Chartered Accountants |
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Address : |
New Delhi, India |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiary Company : |
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Enterprises over which Key Management Personnel (KMP) is able to
exercise Significant Influence : |
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CAPITAL STRUCTURE
AS ON: 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70000000 |
Equity Shares |
Rs.10/- each |
Rs. 700.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
22290957 |
Equity Shares |
Rs.10/- each |
Rs. 222.909 Million |
|
|
Forfeited Shares |
|
Rs. 0.345 Million |
|
|
Total |
|
Rs. 223.254 Million |
Reconciliation of
the shares outstanding at the beginning and at the end of the reporting period
(Rs. IN Million)
|
Particulars |
No. of Shares |
Amount |
|
At the beginning of the year |
19817957 |
198.180 |
|
Add: Issued during the year |
2473000 |
24.729 |
|
Outstanding at the
end of the year |
22290957 |
222.909 |
Note:
(a) Out of 1,34,04,202 equity shares (face value of Rs. 10 each) held by promoters and promoters group companies, 1,09,31,202 equity shares (face value of Rs. 10 each) pledged with National Securities Depository Limited (NSDL) in favor of Canara Bank (lead banker).
(b) Equity shares arising out of conversion of the convertible warrants issued on preferential basis
Terms/rights
attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is entitled to one vote per share. 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. During the year ended 31st March, 2015, the amount of dividend recognized as distribution to equity shareholder was Rs. Nil.
The following hold
more than 5% shares
|
Name of equity shareholder |
No. of Shares |
% holding |
|
Panchsheel Textile Manufacturing and Trading Company Private Limited |
44,26,917 |
19.86 |
|
Alma Assets Consultancy Private Limited |
43,62,325 |
19.57 |
|
Swarnim Tie Up Private Limited |
14,00,000 |
6.28 |
|
Altfort Merchants Private Limited |
21,82,000 |
9.79 |
As per of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares
Aggregate number of
shares issued for consideration other than cash and shares bought back during
the period of five years immediately preceding the reporting date : Nil.
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
223.254 |
198.524 |
178.775 |
|
(b) Reserves & Surplus |
1062.981 |
990.364 |
843.994 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
98.500 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
1286.235 |
1287.388 |
1022.769 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
2319.572 |
2614.161 |
3108.475 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
7.151 |
0.000 |
0.000 |
|
(d) long-term provisions |
20.677 |
43.947 |
20.785 |
|
Total Non-current
Liabilities (3) |
2347.400 |
2658.108 |
3129.260 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1646.386 |
1242.748 |
914.909 |
|
(b) Trade payables |
688.690 |
659.868 |
479.540 |
|
(c) Other current
liabilities |
1004.259 |
1276.199 |
1209.660 |
|
(d) Short-term provisions |
48.880 |
29.608 |
96.043 |
|
Total Current Liabilities
(4) |
3388.215 |
3208.423 |
2700.152 |
|
|
|
|
|
|
TOTAL |
7021.850 |
7153.919 |
6852.181 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2571.237 |
2827.666 |
2941.954 |
|
(ii) Intangible Assets |
7.148 |
4.620 |
5.397 |
|
(iii) Capital
work-in-progress |
41.110 |
76.575 |
141.510 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
914.956 |
1365.048 |
1365.048 |
|
(c) Deferred tax assets
(net) |
501.618 |
182.141 |
167.613 |
|
(d) Long-term Loan and Advances |
109.506 |
94.755 |
103.385 |
|
(e) Other Non-current
assets |
257.067 |
236.299 |
95.652 |
|
Total Non-Current Assets |
4402.642 |
4787.104 |
4820.559 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
3.194 |
6.955 |
9.199 |
|
(b) Inventories |
1379.003 |
921.918 |
509.947 |
|
(c) Trade receivables |
525.199 |
659.501 |
567.041 |
|
(d) Cash and cash
equivalents |
142.064 |
131.034 |
174.681 |
|
(e) Short-term loans and advances |
569.748 |
647.407 |
770.754 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
2619.208 |
2366.815 |
2031.622 |
|
|
|
|
|
|
TOTAL |
7021.850 |
7153.919 |
6852.181 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Revenue from operations |
9424.069 |
9227.180 |
7862.168 |
|
|
Other Income |
235.415 |
201.612 |
93.468 |
|
|
TOTAL (A) |
9659.484 |
9428.792 |
7955.636 |
|
|
|
|
|
|
|
Less: |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
6349.238 |
6334.334 |
5164.377 |
|
|
Purchases of
Stock-in-Trade |
120.635 |
27.715 |
4.835 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
104.120 |
(233.376) |
(101.349) |
|
|
Employees benefits
expense |
545.030 |
530.226 |
458.978 |
|
|
Other expenses |
1714.277 |
1692.346 |
1510.481 |
|
|
Exceptional Items |
358.501 |
0.000 |
0.000 |
|
|
TOTAL (B) |
9191.801 |
8351.245 |
7037.322 |
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (A-B) (C) |
467.683 |
1077.547 |
918.314 |
|
|
|
|
|
|
|
|
Less: |
FINANCIAL EXPENSES (D) |
725.520 |
717.739 |
602.824 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(257.837) |
359.808 |
315.490 |
|
|
|
|
|
|
|
Less: |
DEPRECIATION/
AMORTISATION (F) |
323.857 |
326.585 |
366.007 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX
(E-F) (G) |
(581.694) |
33.223 |
(50.517) |
|
|
|
|
|
|
|
Less: |
TAX (H) |
(293.674) |
(14.528) |
(62.223) |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX (G-H) (I) |
(288.020) |
47.751 |
11.706 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
Export of goods calculated on FOB basis |
4323.725 |
4412.361 |
3029.491 |
|
|
TOTAL EARNINGS |
4323.725 |
4412.361 |
3029.491 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
1.208 |
66.415 |
0.000 |
|
|
Components and Stores
parts |
21.117 |
27.635 |
22.635 |
|
|
Capital Goods |
4.006 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
26.331 |
94.050 |
22.635 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
|
|
|
|
|
Basic |
(14.02) |
2.59 |
0.72 |
|
|
Diluted |
(14.02) |
2.28 |
0.72 |
Expected Sales (2015-2016): Rs. 9000.000 Million (Due to market
fluctuation)
The above information has been parted by Mr. R.K. Sharma (Admin
Accountant)
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
590.006 |
796.390 |
955.591 |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash from operating activities |
762.442 |
616.637 |
715.279 |
QUARTERLY RESULTS
|
Particulars |
|
30.06.2015 (Unaudited) |
30.09.2015 (Unaudited) |
|
|
|
|
|
|
Net Sales |
|
2092.540 |
2182.200 |
|
Total Expenditure |
|
1892.410 |
2035.090 |
|
PBIDT (Excl OI) |
|
200.130 |
147.110 |
|
Other Income |
|
81.340 |
75.200 |
|
Operating Profit |
|
281.470 |
222.310 |
|
Interest |
|
176.090 |
167.040 |
|
Exceptional Items |
|
NA |
NA |
|
PBDT |
|
105.380 |
55.270 |
|
Depreciation |
|
75.250 |
72.330 |
|
Profit Before Tax |
|
30.130 |
(17.060 ) |
|
Tax |
|
21.780 |
0.970 |
|
Provisions and
contingencies |
|
NA |
NA |
|
Profit After Tax |
|
51.910 |
(18.030) |
|
Extraordinary Items |
|
NA |
NA |
|
Prior Period Expenses |
|
NA |
NA |
|
Other Adjustments |
|
NA |
NA |
|
Net Profit |
|
51.910 |
(18.030 ) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(3.06) |
0.52 |
0.15 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
4.96 |
11.68 |
11.68 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(10.45) |
0.60 |
(0.98) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.45) |
0.03 |
(0.05) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
3.54 |
3.61 |
4.87 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.77 |
0.74 |
0.75 |
STOCK
PRICES
|
Face Value |
Rs.10/- |
|
Market Value |
Rs. 48.40/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
178.775 |
198.524 |
223.254 |
|
Reserves & Surplus |
843.994 |
990.364 |
1062.981 |
|
Share Application money pending allotment |
0.000 |
98.500 |
0.000 |
|
Net worth |
1022.769 |
1287.388 |
1286.235 |
|
|
|
|
|
|
long-term borrowings |
3108.475 |
2614.161 |
2319.572 |
|
Short term borrowings |
914.909 |
1242.748 |
1646.386 |
|
Current Maturities of
Long-Term Debts |
955.591 |
796.390 |
590.006 |
|
Total borrowings |
4978.975 |
4653.299 |
4555.964 |
|
Debt/Equity ratio |
4.868 |
3.615 |
3.542 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Revenue from operations |
7862.168 |
9227.180 |
9424.069 |
|
|
|
17.362 |
2.134 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Revenue from operations |
7862.168 |
9227.180 |
9424.069 |
|
Profit |
11.706 |
47.751 |
(288.020) |
|
|
0.15% |
0.52% |
(3.06%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
Yes |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
Yes |
|
28 |
Estimation for coming financial year |
Yes |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
No |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
LEGAL STATUS AND ACTIVITIES
1. The financial results of the Company for the quarter ended 30th June, 2015 have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 8th August, 2015 and the limited review of the same has been carried out by Statutory Auditors of the Company.
2. Notional gain of Rs. 3.252 million arising on
account of foreign exchange differences on foreign currency monetary items
including (FCCB) as required by "Accounting Standard -11 -Effects of
Change in Foreign Currency Rates", has not been accounted for during the
current quarter due to wide fluctuation in Indian Rupees vis a vis foreign
currencies. The same would be recognized in the annual financial results.
3. FCCB had fallen due for repayment on Feb'13, the same has been settled with
the bondholders at discount, payment of which is to be made in installments,
spread up to F.Y. 2016. As per settled term, proportionate bonds will be
cancelled against each installments made. Accordingly in current period, the
company has accounted write back of the cancelled bonds.
4. The Auditor's Qualification on the accounts for the year ended 31st March 2015 with respect of creating provision for write-off of investments in subsidiary company namely FM Hammerle Textiles Limited (Formerly Known as Oswal F M Hammerle Textiles Ltd} has not been addressed. In view of continuous losses sufferred by the Company which has eroded 100% of the share capital, the Company falls under "Sick Company" under the Sick Industrial and Companies (Special Provision) Act (SICA) of 1985 and has filed an application to Board for Industrial and Financial Reconstruction (BIFR).
5. The figure for the quarter ended 31 March 2015 is the difference between the
audited figures for the financial years ended 31 March, 2015 and year to date
published unaudited financial results upto third quarter ended 31 Dec, 2014.
6. The company is developing the residential and commercial colony/project
named as 'Vardhman Park’, Chandigarh Road, Ludhiana -141123.
7. During the previous year ended March 31, 2015, the Company had transferred
land used for real estate development from fixed assets into stock in trade.
Accordingly Rs. 407.602 million were credited to 'Capital Reserve' being excess
of collector rate over cost price. In the previous year ended 31.03.15 the
company had transferred an amount of Rs. 102.585 million and during the current
quarter ended 30 June 2015 an amount of Rs. 43.369 million from Capital Reserve
to the Statement of Profit and Loss being an amount in proportion to sales
made. Disclosure in respect of project which falls under the Revised Guidance
Note issued by the Institute of Chartered Accountants of India on
"Accounting for Real Estate transactions (Revised 2012)".
8. Figures for previous periods have been recast/regrouped wherever necessary.
BUSINESS
PERFORMANCE:
The Directors are pleased to report the Company’s business performance as follows:
SALES REVENUE:
During the year, net operating income of the Company was Rs. 9424.069 million as against Rs. 9227.181 million in 2013-14, registering a marginal increase of 2.09%. The FOB value of exports during the year has marginally decreased by 2.09% to Rs. 4323.725 million against Rs. 4412.361 million in 2013-14.
PROFITABILITY:
During the year, the Company earned a profit before depreciation, interest and tax of Rs. 826.184 million as against of Rs. 1077.547 million during the previous year. The Company has a net loss after tax of `Rs. (288.020) million during the current year against net profit of Rs. 47.751 million in the previous year
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
India’s textiles and garment industry is one of the significant contributing sectors to Indian economy in terms of direct and indirect employment generation and net foreign exchange earnings. Textile sector contributes about 14% to industrial production, 4% to the gross domestic product (GDP) and 27% to the country’s foreign exchange inflows. It provides direct employment to over 45 million people and second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the economy of the nation.
The calendar year 2014 started with a low demand, falling yarn prices against high priced raw material inventory and subdued sentiments which continued till almost end of the year. With the arrival of new cotton in October/November 2014 at affordable prices, there was parity between raw material and finished goods which helped in recovering profit margins
Textile industry at international level, seems to be quite unpredictable and uncertain for various reasons including stagnant / diminishing demand as against increasing supply, Chinese policy on cotton, imports and currency and above all growing competition from some countries prominently Vietnam, Bangladesh, Cambodia, Thailand, Indonesia etc.
Recently the Government’s initiatives towards sick textile units and funds allocation for developing textile cluster and Facilitation Centre heal confidence among the spinners. In addition, the campaign launched by the government intends to provide a further boost to the Indian textile industry and enable it to achieve growth in exports and domestic market. The campaign also focused on providing investment opportunities for foreign companies and entrepreneurs across the entire value chain of synthetics, value-added and specialty fabrics, fabric processing set-ups for all kinds of natural and synthetic textiles, technical textiles, garments and retail brands.
Real estate market has played a vital role in the Indian economy at least in the last about two decades. It is the
Fourth largest sector in the country in terms of foreign direct investment (FDI) inflows. FDI in the sector is estimated to grow to US$ 25 billion in 10 years. Real estate contribution to India’s gross domestic product (GDP) is estimated to increase to about 13% by 2028, on the back of increasing industrial activity, improving income level and urbanization.
Currently, the real estate segment is passing through a rough phase of its business cycle. The year 2014-15 was a bag full of mixed emotions and there was nothing much to excite the buyers, investors or the realtors, as a whole. There were many political changes that led to the amendments into otherwise hard and stringent policies. However, Union Budget 2014-15 has given hopes for this sector because this time it has brought in the much-needed relief for the Indian realty sector that may not only bring positivity for the domain/ sentiments but may also help hassle-free investments.
ECONOMIC SCENARIO AND
OUTLOOK:
As per the IMF forecast, India is set to become the world’s fastest growing major economy by 2016 ahead of China. India is expected to grow at 6.3 per cent in 2015, and 6.5 per cent in 2016 by when it is likely to cross China’s projected growth rate.
In the global exports of Textiles, India has improved its ranking. To perform consistently at global level appears to be challenge for the textile sector due to varied reasons including Indian Government’s policy on cotton/fibres, Chinese policy on cotton, erratic demand, currency fluctuations, high conversion and logistic costs and Trans-pacific partnership (TPP) agreement with Vietnam by US and other countries.
Considerable cash incentives doled out by certain States in the country to attract investment will hasten build up of capacities in spinning sector which may lead to oversupply and unhealthy competition, resulting into eroded profit margins.
In order to survive, sustain and thrive in the global market, it would be necessary to differentiate and improve presence in value added products in the near future. Further, Technical textile, which has been a thrust area for the Government, is expected to grow at a faster pace as compared to other textiles products. It would be prudent to be an early bird and earmark some investments for this area for better and sustainable profitability.
UNSECURED LOAN:
|
PARTICULARS |
31.03.2015 (Rs.
in Million) |
31.03.2014 (Rs.
in Million) |
|
LONG TERM
BORROWINGS |
|
|
|
Term loans |
|
|
|
Foreign currency convertible bonds |
199.984 |
239.640 |
|
From others |
40.000 |
50.000 |
|
Fixed deposit from public |
0.000 |
0.495 |
|
|
|
|
|
Total |
239.984 |
290.135 |
INDEX
OF CHARGES:
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10575392 |
30/04/2015 |
300,000,000.00 |
THE JAMMU AND KASHMIR BANK |
PLOT 330, INDUSTRIAL AREA -A, CHEEMA CHOWK, LUDHIANA- 141003, PUNJAB, INDIA |
C56648421 |
|
2 |
10554885 |
16/02/2015 |
250,000,000.00 |
STATE BANK OF PATIALA |
MILLER GANJ, AARTI COMPLEX, LUDHIANA-141003, LUDHI |
C46574828 |
|
3 |
10410967 |
27/02/2013 |
723,800,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, GOLDEN TOWER, LUDHIANA- 141003, PUNJAB, INDIA |
B70487855 |
|
4 |
10304145 |
23/12/2013 * |
79,000,000.00 |
RELIGARE FINVEST LIMITED |
D3, P3B,, DISTRICT CENTRE, SAKET, NEW DELHI - 110017, INDIA |
B92328202 |
|
5 |
10299161 |
04/03/2013 * |
420,300,000.00 |
ANDHRA BANK |
ANDHRA BANK, SCO 202-204, SECTOR 17-C, CHANDIGARH - 160017, INDIA |
B72383920 |
|
6 |
10283153 |
18/03/2011 |
150,000,000.00 |
STATE BANK OF INDIA |
SCB, MILLER GANJ, LUDHIANA- 141003, PUNJAB, INDIA |
B11818689 |
|
7 |
10283155 |
18/03/2011 |
809,600,000.00 |
STATE BANK OF INDIA |
SCB MILLER GANJ, LUDHIANA, LUDHIANA 141003, PUNJAB -, INDIA |
B11818986 |
|
8 |
10262353 |
23/12/2013 * |
79,000,000.00 |
RELIGARE FINVEST LIMITED |
D3, P3B,, DISTRICT CENTRE, SAKET, NEW DELHI, DELHI - 110017, INDIA |
B92328467 |
|
9 |
10210535 |
03/03/2010 |
50,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA,, DR. |
A82899154 |
|
10 |
10189016 |
14/11/2009 |
65,000,000.00 |
ALLAHABAD BANK |
24, RAJLOK BUILDING, NEHRU PLACE, NEW DELHI - 110015, INDIA |
A74561853 |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
|
Claims against the Company not acknowledged as debts |
22.125 |
47.752 |
|
Bills discounted with bankers |
1032.502 |
583.741 |
|
Letter of credit and bank guarantee issued |
18.780 |
0.853 |
|
Income Tax demands under appeal |
59.940 |
78.355 |
|
Demand of PSEB for voltage surcharge and DSA |
25.624 |
25.624 |
|
Subordination letter for not to withdraw the loan from foreign subsidiary until negative equity situation reverses |
23.733 |
23.733 |
|
Corporate Limited (formerly Known as Oswal F.M. Hammerle Textiles Limited)” pursuant to scheme of CDR |
823.300 |
823.300 |
There are no present obligations requiring provisions in accordance with the guiding principles as enunciated in accounting standard (AS)-29 ‘Provisions, Contingent Liabilities and Contingent Assets’ as it is not probable that an outflow of resources embodying economic benefits will be required.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2015
(Rs. In Million)
|
PARTICULARS |
Quarter Ended |
Quarter Ended |
Half Year Ended |
|
30.09.2015 |
30.06.2015 |
30.09.2015 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
1.
Income from operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
2147.937 |
2061.587 |
4209.524 |
|
b) Other operating income |
34.265 |
30.954 |
65.219 |
|
Total
income from Operations(net) |
2182.202 |
2092.541 |
4274.743 |
|
2.Expenditure |
|
|
|
|
a) Cost of material consumed |
1368.274 |
1480.746 |
2849.020 |
|
b) Purchases of stock in trade |
79.118 |
0.393 |
79.511 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
16.619 |
(145.099) |
(128.480) |
|
d) Employees benefit expenses |
141.564 |
143.930 |
285.494 |
|
e) Depreciation and amortization expenses |
72.333 |
75.245 |
147.578 |
|
f) Other expenditure |
429.507 |
412.452 |
841.959 |
|
Total expenses |
2107.415 |
1967.667 |
4075.082 |
|
3.
Profit/ (Loss) from operations before other income and financial costs and
exceptional items (1-2) |
74.787 |
124.874 |
199.661 |
|
4. Other income |
75.200 |
81.344 |
156.544 |
|
5.
Profit/ (Loss) from ordinary activities before finance costs and exceptional
items (3+4) |
149.987 |
206.218 |
356.205 |
|
6. Finance costs |
167.043 |
176.088 |
343.131 |
|
7. Profit/(Loss) from ordinary
activities after finance costs but before exceptional items (5-6) |
(17.056) |
30.130 |
13.074 |
|
8. Exceptional item |
- |
-- |
-- |
|
9. Profit/(Loss) from
ordinary activities before tax Expense: |
(17.056) |
30.130 |
13.074 |
|
10.Tax expenses |
0.969 |
(21.775) |
(20.806) |
|
11. Profit / (Loss) from ordinary activities after
tax (9-10) |
(18.025) |
51.905 |
33.880 |
|
12.Extraordinary Income (net
of tax expense Rs. Nil) |
-- |
-- |
-- |
|
13.Net Profit / (Loss) for
the period (11 -12) |
(18.025) |
51.905 |
33.880 |
|
14.Paid-up equity share capital (Face value of Rs.10/- per share) |
223.254 |
223.254 |
223.254 |
|
15. Reserve excluding Revaluation Reserves as per balance sheet of
previous accounting year |
|
|
-- |
|
16.i) Earnings per share (before
extraordinary items) (in Rs) (not annualised): |
|
|
|
|
(a) Basic |
(0.81) |
2.33 |
1.52 |
|
(b) Diluted |
(0.81) |
2.33 |
1.52 |
|
16.ii) Earnings per share
(after extraordinary items) (in Rs) (not annualised): |
|
|
|
|
(a) Basic |
(0.81) |
2.33 |
1.52 |
|
(b) Diluted |
(0.81) |
2.33 |
1.52 |
|
PARTICULARS |
Quarter Ended |
Quarter Ended |
Half Year Ended |
|
|
30.09.2015 |
30.06.2015 |
30.09.2015 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
A.
Particulars of shareholding |
|
|
|
|
|
1.
Public Shareholding |
|
|
|
|
|
- Number of shares |
8886755 |
8886755 |
8886755 |
|
|
- Percentage of shareholding |
39.87% |
39.87% |
39.87% |
|
|
2.
Promoters and Promoters group Shareholding- |
|
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
|
Number of shares |
10931202 |
10931202 |
10931202 |
|
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
81.55% |
81.55% |
81.55% |
|
|
Percentage of shares (as a % of total share capital of the
company) |
49.04% |
49.04% |
49.04% |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
Number of shares |
2473000 |
2473000 |
2473000 |
|
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
18.45% |
18.45% |
18.45% |
|
|
Percentage of shares (as a % of total share capital of the
company) |
11.09% |
11.09% |
11.09% |
|
|
|
|
|
||
|
B.
Investor Complaints |
For
the Quarter Ended |
|
||
|
|
30.09.2014 |
|
||
|
Pending at the beginning of the quarter |
0 |
|
||
|
Receiving during the quarter |
2 |
|
||
|
Disposed of during the quarter |
2 |
|
||
|
Remaining unreserved at the end of the quarter |
0 |
|
||
1. The financial results of
the Company for the quarter ended 30th Sep, 2015 have been reviewed by the
Audit Committee and approved by the Board of Directors at its meeting held on
10th November, 2015 and the limited review of the same has been carried out by
Statutory Auditors of the Company.
2. Notional loss of Rs.18.23 lacs arising on account of foreign exchange
differences on foreign currency monetary items including (FCCB) as required by
"Accounting Standard - 11 - Effects of Change in Foreign Currency
Rates", has not been accounted for during the current quarter due to wide
fluctuation in Indian Rupees vis a vis foreign currencies. The same would be
recognized in the annual! Financial results.
3. FCCB had fallen due for repayment on Feb'13, the same has been settled with
the bondholders at discount, payment of which is to be made in installments,
spread up to F.Y. 2016. As per settled term, proportionate bonds will be
cancelled against each installments made. Accordingly in current period, the
company has accounted write back of the cancelled bonds. During the current
quarter the Company has taken profit of Rs.35.100 million on redemption of FCCB
liability due for payment on 30th September 2015. The Company is paying this
liability on a monthly basis starting 1st October 2015 and as per arrangement
with the bankers.
4. The Auditor's Qualification on the accounts for the year ended 31st March
2015 with respect of creating provision for write-off of investments in
subsidiary company namely FM Hammerle Textiles Ltd (Formerly Known as Oswal FM
Hammerle Textiles Ltd) has not been addressed. In view of continuous losses
suffered by the company which has eroded 100% of the share capital, the company
falls under "Sick Company" under the Sick Industrial and Companies
(Special Provision) Act (SICA) of 1985 and has filed an application to Board
for Industrial and Financial Reconstruction (BIFR). The subsidiary is now
registered under BIFR , the Company has given advances to the tune of Rs.
357.232 million.
5. The company is developing the residential and commercial colony/project
named as 'Vardhman Park', Chandigarh Road, Ludhiana -141123.
6. During the previous year ended March 31, 2015, the Company had transferred
land used for real estate development from fixed assets into stock in trade.
Accordingly Rs. 407.602 million were credited to 'Capital Reserve' being excess
of collector rate over cost price. In the previous year ended 31.03.15 the
company had transferred an amount of Rs. 102.585 million and during the current
period ended 30 September 2015 an amount of Rs.670.76 lacs from Capital Reserve
to the Statement of Profit and Loss being an amount in proportion to sales
made. The auditor has also qualified in this respect. Disclosure in respect of
project which falls under the Revised Guidance Note issued by the Institute of
Chartered Accountants of India on "Accounting for Real Estate transactions
{Revised 2012)"
|
Description |
For the Perios Ended 30th September 2015 |
For the quarter Ended 30th September 2015 |
For the quarter Ended 30th June 2015 |
|
Amount of project revenue recognized as revenue during the year |
64.992 |
19.156 |
45.836 |
|
Aggregate amount of Costs incurred |
84.099 |
29.724 |
54.375 |
|
Loss recognized to date |
(19.107) |
(10.568) |
(8.539) |
|
Transfer from Capital Reserves |
67.076 |
23707 |
43.369 |
|
Profit recognizes to date after adjustment of capital Reserve |
47.969 |
13.139 |
34.830 |
|
Amount of advances received |
65.934 |
40865 |
25.069 |
|
Amount of work-in-progress and value of inventories |
286.205 |
286.205 |
293.429 |
UNAUDITED SEGMENT
WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In
Million)
|
PARTICULARS |
Textile Business |
Real Estate Business |
Total |
|
|
|
|
|
|
|
|
|
|
|
Segment Revenue |
|
|
|
|
Gross Revenue |
4209.751 |
64.992 |
4274.743 |
|
Less:
Excise Duty |
-- |
-- |
-- |
|
Less
: Inter Segment Revenue |
-- |
-- |
-- |
|
Net Segment Revenue |
4209.751 |
64.992 |
7274.743 |
|
|
|
|
|
|
Segment Result |
|
|
|
|
Less:
Finance Cost |
-- |
-- |
343.131 |
|
Add:
Other Income (net of transfer from Capital Reserve of Rs. 43.369 Million) |
-- |
-- |
89.468 |
|
Profit/
(Loss) before tax |
|
|
13.074 |
|
Tax Expenses |
|
|
20.806 |
|
Ptofit
After Tax |
|
|
33.880 |
|
Segment Assets |
6190.427 |
309.005 |
6499.432 |
|
Non Segment Assets |
-- |
-- |
543.117 |
|
Total Assets |
- |
-- |
7042.549 |
|
Segment Liabilities |
3059.624 |
106.051 |
3165.765 |
|
Non Segment Liabilities |
-- |
-- |
2623.876 |
|
Total Liabilities |
-- |
-- |
5789.551 |
|
Segment Capital Employed |
3130.803 |
202.954 |
333.757 |
|
Depreciation |
-- |
-- |
147.578 |
|
Capital Expenditure |
-- |
-- |
46.813 |
FIXED ASSETS:
Tangible
- Leasehold Land
- Free hold Land
- Building
- Plant and Machinery
- Other Equipment
- Furniture and Fixtures
- Vehicles
Intangible
- Software
- Trade Mark
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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 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. 66.81 |
|
UK Pound |
1 |
Rs. 100.37 |
|
Euro |
1 |
Rs. 70.68 |
INFORMATION DETAILS
|
Information
Gathered by : |
SUV |
|
|
|
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
GEET |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
1 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL
CONDITION |
|
0 |
|
--BUSINESS SCALE |
1~10 |
1 |
|
--PROFITABILITY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
11 |
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.