MIRA INFORM REPORT
|
Report No. : |
352106 |
|
Report Date : |
02.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
RAJVIR INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
1st Floor, Surya Towers, 105, S P Road,
Secunderabad-500003, Telangana |
|
Tel. No.: |
91-40-66225555/27845628/27845650 |
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|
|
|
Country : |
India |
|
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|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
01.09.2004 |
|
|
|
|
Com. Reg. No.: |
36-044053 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 125.350 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17116TG2004PLC044053 |
|
|
|
|
IEC No.: |
0905000625 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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|
|
|
PAN No.: [Permanent Account No.] |
AACCR9461P |
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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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|
|
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Line of Business
: |
Manufacturing of yarn. (Registered Activity) |
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|
|
|
No. of Employees
: |
780 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 753700 |
|
|
|
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having moderate track record. It manufacturers
cotton yarn, synthetic yarn, blended yarn and melange yarn. The rating takes into consideration moderation financial risk profile
of the company marked by huge and increase debt level in the year 2015.
Further, the company has been incurring losses from its operations which has
hampered the reserve conditions. However, trade relation are fair. Business is active. Payment terms
are reported as slow but correct. In view of leveraged capital structure, the subject can be considered
for business dealings with great 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 – 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 |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
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 DECLINED
Management non-cooperative (91-40-66225555)
LOCATIONS
|
Registered Office : |
1st Floor, Surya Towers, 105, Sarder Patel Road,
Secunderabad - 500003, Telangana, India |
|
Tel. No.: |
91-40-66225555 / 27845628 / 27845650 |
|
Fax No.: |
91-40-27840656 |
|
E-Mail : |
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|
Website : |
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|
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Factory 1 : |
Mahabubnagar
Plant Pillalamarri Road, Mahabubnagar-509002, Telangana, India |
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Factory 2 : |
Dyeing Plant Edira Village, Mahabubnagar-509002, Telangana, India |
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|
Factory 3 : |
Tandur Plant Gopannapally (Village), Tandur Mandal, Ranga Reddy District– 501141,
Telangana, India |
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|
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|
Sales Depot : |
No.37, Susai
Puram Sowdambika Towers, Ground Floor, Tirpur – 641 604, Tamilnadu, India |
DIRECTORS
As on 31.03.2015
|
Name : |
Mr. Ritesh Kumar Agarwal |
|
Designation : |
Managing Director |
|
Address : |
H No.8-2-293/82/J-111, Plot No:324, Road No.79, Phase -III, Jubilee Hills, Hyderabad-500033, Telangana, India |
|
Qualification : |
Graduated from the University of Charleston WV, Unites States of America, with specialization in Business Administration |
|
Date of Appointment : |
25.04.2005 |
|
DIN No.: |
00513341 |
|
|
|
|
Name : |
Mr. Upender Kumar Agarwal |
|
Designation : |
Whole-Time Director |
|
Address : |
H.No.8-2-293/82/J 111/324 Lakshmi Sai Nilayam, Film Nagar Road No.79 Jubileehills, Hyderabad-500034, Telangana, India |
|
Qualification : |
Graduate |
|
Experience : |
38 years |
|
Date of Appointment : |
25.04.2005 |
|
DIN No.: |
00513348 |
|
|
|
|
Name : |
Mr. Vijaykumar Gupta |
|
Designation : |
Director |
|
Address : |
Plot No.1232, Road No.60, Jubilee Hills, Hyderabad-500033, Telangana, India |
|
Qualification : |
B.Com |
|
Experience : |
43 years |
|
Date of Appointment : |
16.07.2012 |
|
DIN No.: |
01050958 |
|
|
|
|
Name : |
Mr. Chinnappa Reddy Kandukuri |
|
Designation : |
Director |
|
Address : |
7-1-644/3/A, Sundar Nagar, Hyderabad-500038, Telangana, India |
|
Qualification : |
B.Com |
|
Date of Appointment : |
22.03.2012 |
|
DIN No.: |
05234670 |
|
|
|
|
Name : |
Anisha Tandon |
|
Designation : |
Director |
|
Address : |
8-2-268/1/A Arora Colony, Road No.3, Near Green Mazid, Banjara Hills., Hyderabad-500034, Telangana, India |
|
Date of Appointment : |
31.03.2015 |
|
DIN No.: |
07242348 |
|
|
|
|
Name : |
Padma Vijayakumar Nookala |
|
Designation : |
Director |
|
Address : |
H.No.12-11-2062, SBH Colony, Near Gandhi Statue, Jamai Osmania, Musheerbad, Hyderabad-500044, Telangana, India |
|
Date of Appointment : |
31.08.2015 |
|
DIN No.: |
07337451 |
KEY EXECUTIVES
|
Name : |
Mr. Ramesh A. |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. I Shiv Kumar |
|
Designation : |
Chef Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2015
|
Category of Shareholder |
No. of Shares |
% of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3033722 |
75.94 |
|
|
3033722 |
75.94 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3033722 |
75.94 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
700 |
0.02 |
|
|
22907 |
0.57 |
|
|
23607 |
0.59 |
|
|
|
|
|
|
149352 |
3.74 |
|
|
|
|
|
|
541657 |
13.56 |
|
|
233824 |
5.85 |
|
|
12698 |
0.32 |
|
|
937531 |
23.47 |
|
Total Public shareholding (B) |
961138 |
24.06 |
|
Total (A)+(B) |
3994860 |
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) |
3994860 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of yarn. (Registered Activity) |
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|
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
780 (Approximately) |
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Bankers : |
Industrial Development Bank of India State Bank of India State Bank of Hyderabad State Bank of Mysore State Bank of Bikaner and Jaipur Axis Bank Limited Central Bank of India ICICI Bank Limited |
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Facilities : |
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Financial Institutions : |
· IDBI Trusteeship Services Limited · SBICAP Trustee Company Limited, 202, Maker Tower E, Cuffe Parade, Colaba, Mumbai- 400005, Maharashtra, India |
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Auditors : |
|
|
Name : |
S. Daga and Company Chartered Accountants |
|
Address : |
403, Paigah Plaza, Basheerbagh, Hyderabad- 500063,
Telangana, India |
|
|
|
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Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
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|
Associates Firms : |
|
CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
45,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 45.000 Million |
|
9,50,000 |
12% Redeemable Non Convertible Cumulative Preference
Shares |
Rs.100/- each |
Rs. 95.000
Million |
|
|
Total
|
|
Rs. 140.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30,34,997 |
Equity Shares |
Rs.10/- each |
Rs. 30.350
Million |
|
9,50,000 |
12% Redeemable Non Convertible Cumulative Preference
Shares |
Rs.100/- each |
Rs. 95.000
Million |
|
|
Total
|
|
Rs. 125.350 Million |
a) Reconciliation of the
shares outstanding at the beginning and at the end of the reporting period
|
Particulars |
No. of Shares |
|
Equity Shares |
|
|
At the beginning of the period |
3034997 |
|
Issued during the period |
-- |
|
Outstanding at the end of period |
3034997 |
|
12% Redeemable
Non-convertible cumulative Preference shares |
|
|
At the beginning of the period |
950000 |
|
Issued during the period |
-- |
|
Outstanding at the end of period |
950000 |
b) Terms/rights
attached to equity shares:
The Company has one class of Equity Shares of face value Rs.10 per share. 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 the approval of the Shareholders in ensuing Annual General Meeting.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c) Terms/rights
attached to 12% Redeemable Non Convertible Cumulative Preference shares
(i) Entitled to receive dividend @ 12% per annum
(iii) 3,00,000 Shares issued on 14.11.2012 Redeemable on 15th February, 2025
(iv) The RNCCPS shall have right to attend the General meetings of the company and vote on the Resolutions directly affecting their interest or where the dividends are in arrears for not less than two years on the date of the meeting, on all resolutions at every meeting of the Company.
(v) In winding up, the RNCCPS holders of the said shares shall be entitled to preferential right of return of the amount paid up on the shares, together with arrears of cumulative preference dividend due as on the date of winding up, but shall not have any further right or cliam over the surplus profits or assets of the Company.
d) Details of Equity
and Redeemable Preference Shareholders holding more than 5% of Shares along
with No. of Shares held at the beginning and at the end of the reporting period
are as given below:-
|
Particulars |
As at 31.03.2015 |
|
|
|
|
% |
|
Equity Shares |
|
|
|
U.K. Agarwa |
164628 |
5.42 |
|
Ritesh K Agarwal |
441164 |
14.50 |
|
U.K.Agarwal (Family Trust) |
421135 |
13.80 |
|
U.K.Agarwal (HUF) |
285439 |
9.41 |
|
Viraj Agarwal |
282911 |
9.32 |
|
Usha Agarwal |
212223 |
6.99 |
|
Arti Agarwal |
214859 |
7.08 |
|
12% Redeemable
Non-convertible cumulative Preference shares |
|
|
|
Ritesh K Agarwal |
415000 |
43.68 |
|
U.K.Agarwal |
365000 |
38.42 |
|
U.K.Agarwal (Family Trust) |
100000 |
10.53 |
|
U.K.Agarwal (HUF) |
70000 |
7.37 |
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 |
125.350 |
125.350 |
125.350 |
|
(b) Reserves & Surplus |
138.431 |
264.286 |
454.405 |
|
(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) |
263.781 |
389.636 |
579.755 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1319.292 |
373.859 |
506.031 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
29.142 |
126.882 |
|
(c) Other long term
liabilities |
51.646 |
54.628 |
58.802 |
|
(d) long-term
provisions |
4.384 |
4.176 |
4.451 |
|
Total Non-current
Liabilities (3) |
1375.322 |
461.805 |
696.166 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
437.267 |
786.220 |
683.836 |
|
(b) Trade
payables |
328.639 |
527.413 |
762.643 |
|
(c) Other
current liabilities |
229.187 |
471.189 |
412.941 |
|
(d) Short-term
provisions |
7.016 |
7.466 |
5.290 |
|
Total Current
Liabilities (4) |
1002.109 |
1792.288 |
1864.710 |
|
|
|
|
|
|
TOTAL |
2641.212 |
2643.729 |
3140.631 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1460.798 |
1574.470 |
1686.543 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
3.367 |
3.132 |
2.020 |
|
(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) |
23.143 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
54.295 |
83.037 |
82.922 |
|
(e) Other Non-current
assets |
5.616 |
5.616 |
0.000 |
|
Total Non-Current
Assets |
1547.219 |
1666.255 |
1771.485 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
663.493 |
535.970 |
900.969 |
|
(c) Trade
receivables |
123.765 |
88.980 |
225.534 |
|
(d) Cash
and cash equivalents |
91.666 |
42.462 |
56.084 |
|
(e)
Short-term loans and advances |
45.046 |
40.402 |
39.176 |
|
(f) Other
current assets |
170.023 |
269.660 |
147.383 |
|
Total Current
Assets |
1093.993 |
977.474 |
1369.146 |
|
|
|
|
|
|
TOTAL |
2641.212 |
2643.729 |
3140.631 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1016.607 |
1991.997 |
2883.969 |
|
|
|
Other Income |
12.030 |
144.484 |
28.674 |
|
|
|
TOTAL (A) |
1028.637 |
2136.481 |
2912.643 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
531.462 |
1094.082 |
1664.408 |
|
|
|
Purchases of Stock-in-Trade |
0.000 |
32.392 |
0.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(114.803) |
254.674 |
(108.704) |
|
|
|
Employees benefits expense |
152.940 |
189.422 |
245.128 |
|
|
|
Other expenses |
309.999 |
497.376 |
685.153 |
|
|
|
TOTAL (B) |
879.598 |
2067.946 |
2485.985 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
149.039 |
68.535 |
426.658 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
211.761 |
237.326 |
255.795 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION
(C-D) (E) |
(62.722) |
(168.791) |
170.863 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
101.797 |
119.070 |
119.053 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(164.519) |
(287.861) |
51.810 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(48.076) |
(97.741) |
7.040 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(116.443) |
(190.120) |
44.770 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
59.869 |
249.989 |
205.219 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Adjustment of carrying amount of assets (Net of Tax of Rs. 4.209 Million) pursuanat to enactment of Schedule -II to the Companies Act,2013 |
9.412 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
(65.986) |
59.869 |
249.989 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
240.821 |
472.777 |
769.206 |
|
|
TOTAL EARNINGS |
240.821 |
472.777 |
769.206 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
88.920 |
104.834 |
120.834 |
|
|
|
Stores & Spares |
0.274 |
1.016 |
0.647 |
|
|
|
Others |
|
|
4.213 |
|
|
TOTAL IMPORTS |
89.194 |
105.850 |
125.694 |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss) Per Share (Rs.) |
(38.37) |
(62.64) |
14.75 |
|
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Debentures Secured |
0.000 |
0.000 |
4.143 |
|
Current maturities of term loans from Banks |
29.880 |
245.113 |
195.853 |
|
Current maturities of finance lease |
0.694 |
0.781 |
0.000 |
|
Deferred Payment Liabilities - Sales Tax |
24.274 |
41.285 |
11.969 |
|
Current
Maturities of Long term debt |
54.848 |
287.179 |
211.965 |
|
Cash generated from operations |
(708.455) |
271.792 |
362.837 |
|
Cash Flow From Operating Activities |
(708.455) |
271.792 |
107.042 |
QUARTERLY RESULTS
|
Particulars |
|
30.06.2015 (Unaudited) |
30.09.2015 (Unaudited) |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
416.580 |
394.960 |
|
Total Expenditure |
|
371.980 |
385.770 |
|
PBIDT (Excl OI) |
|
44.600 |
9.190 |
|
Other Income |
|
2.270 |
4.980 |
|
Operating Profit |
|
46.870 |
14.170 |
|
Interest |
|
53.210 |
56.080 |
|
Exceptional Items |
|
NA |
33.790 |
|
PBDT |
|
(6.340) |
(8.120) |
|
Depreciation |
|
23.490 |
23.510 |
|
Profit Before Tax |
|
(29.830) |
(31.630) |
|
Tax |
|
(9.220) |
(9.910) |
|
Provisions and
contingencies |
|
NA |
NA |
|
Profit After Tax |
|
(20.610) |
(21.720) |
|
Extraordinary Items |
|
NA |
NA |
|
Prior Period Expenses |
|
NA |
NA |
|
Other Adjustments |
|
NA |
NA |
|
Net Profit |
|
(20.610) |
(21.720) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(11.45) |
(9.54) |
1.55 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
14.66 |
3.44 |
14.79 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.29) |
(10.90) |
1.65 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.62) |
(0.74) |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
6.87 |
3.71 |
2.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.09 |
0.55 |
0.73 |
STOCK
PRICES
|
Face Value |
Rs.10.00 |
|
Market Value |
Rs.42.00 |
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 |
125.350 |
125.350 |
125.350 |
|
Reserves & Surplus |
454.405 |
264.286 |
138.431 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
579.755 |
389.636 |
263.781 |
|
|
|
|
|
|
long-term borrowings |
506.031 |
373.859 |
1319.292 |
|
Short term borrowings |
683.836 |
786.220 |
437.267 |
|
Current Maturities of
Long-Term Debts |
211.965 |
287.179 |
54.848 |
|
Total
borrowings |
1401.832 |
1447.258 |
1811.407 |
|
Debt/Equity
ratio |
2.418 |
3.714 |
6.867 |
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) |
|
Sales |
2883.969 |
1991.997 |
1016.607 |
|
|
|
(30.929) |
(48.965) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
2883.969 |
1991.997 |
1016.607 |
|
Profit |
44.770 |
(190.120) |
(116.443) |
|
|
1.55% |
(9.54%) |
(11.45%) |
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 |
No |
|
8] |
Designation of contact person |
No |
|
9] |
Promoter’s background |
Yes |
|
10] |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
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) |
No |
|
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% |
-- |
|
28] |
Estimation for coming financial year |
No |
|
29] |
Profitability for last three years |
Yes |
|
30] |
Major shareholders, if available |
Yes |
|
31] |
External Agency Rating, if available |
No |
|
32] |
Litigations that the firm/promoter
involved in |
Yes |
|
33] |
Market information |
-- |
|
34] |
Payments terms |
No |
|
35] |
Negative Reporting by Auditors in the
Annual Report |
No |
LITIGATION DETAILS
CASE
DATAILS
CCCA 238 :
2010 CCCASR
12054 / 2010
CASE IS:PENDING
PETITIONER RESPONDENT
M/S.RAGI AND RAGI ENTERPRISES, SECBAD VS M/S. RAJVIR INDUSTRIES LIMITED.,
SECBAD
PET.
ADV.: MADHAVA RAO RESP.ADV:
SUBJECT: Bank Matters DISTRICT:
HYDERABAD
FILING
DATE: 08.10.2010 POSTING
STAGE: FOR ADMISSION
REG.DATE:
29.12.2010 LISTING DATE:
31.12.2010 STATUS:
……
HON;
BLE JUDGE(S):
OPERATIONS
During the year, the company achieved a turnover of Rs.1028.637 Million and net loss of Rs.116.443 Million as against Rs. 2136.481 Million and Rs.190.120 Million in the previous year respectively.
MANAGEMENT DISCUSSION
AND ANALYSIS
A. INDUSTRY STRUCTURE
AND DEVELOPMENT
The Spinning industry is the most modern and internationally competitive segment of India’s Textile. Cotton is one of the Principal crops of India and is the major raw material for domestic textile industry. India is self sufficient in Cotton which provides India’s Textile Industry competitive edge worldwide in terms of low cost of raw material. With the healthy economic growth enjoyed by India over the past decade, the Country’s cotton consumption grew at CAGR of 4.8 per cent in the period 2002-03 to 2012-13. While impressive, this growth has been outpaced by the production registering a CAGR of 9.4 per cent resulting from improved yields (especially due to the adoption of Bt Cotton). The domestic demand of cotton yarn is primarily driven by the growth in consumption of readymade garments and home textiles on account of rising income levels, growing organized retail segment and rising consumer class.
Owing to growth in India, Indonesia, Bangladesh and Vietnam, yarn spinning in South and Southeast Asia overtook Chinese yarn spinning in 2011-12, and it has been rising ever since. During the same time, yarn spinning has remained roughly flat in the rest of the world. Over the years, country has achieved significant quantitative increase in cotton production. Since launch of “Technology Mission on Cotton” by Government of India in February 2000 significant achievements have been made in increasing yield and production through development of high yielding varieties, appropriate transfer of technology, better farm management practices, increased area under cultivation of Bt cotton hybrids etc. All these developments have resulted into a turnaround in cotton production in the country since last 6/7 years. The yield per hectare which was stagnant at about 300 kg/ha for more than 10 years, has increased substantially and reached a level of 554 kg/ha in cotton season 2007-08.
The Indian textiles industry accounts for about 24 percent of the World’s spindle capacity and 8 percent of global rotor capacity. The potential size of the Indian textiles and apparel industry is expected to reach US$ 223 billion by 2021, according to a report by Technopak Advisors.
PRODUCT WISE
PERFORMANCE
The company has captured the major world markets in US, UK, Europe.
While coming out with any new product, The Company keeps in mind the quickest possible lead time and environmental aspects to ensure the product is commercially viable at the time of its launch. One such example of such an innovation is “Rajvir Flutter”. This Innovation means that product comes with pretreatment. The manufacturing unit knit and dyes without doing any acid / chemical wash and still manage to get burn out effect.
The Company is one of the first spinners to develop the exotic blends in the “Compact Route”. Initial developments have been made for the top UK brand “Marks & Spencer” this again is a unique development of high value added Exotic collections of Cashmere blended with Modal and Micro Modal fibers.
The Company is supported by several important retailers, brands and chain stores Worldwide as a designated fashion yarn supplier. In certain cases The Company works with designed teams of fashion brands in US, UK and European markets. These brands share their fashion forecast with the Company which helps the Company in creating a line of products similar to the fashion forecast provided by the brands and retailers Worldwide. Other than the forecasts that are shared by these retailers the Company also develops several new yarns of its own which are also showcased to various brands, retailers and chain stores Worldwide as new fancy products.
The Company works directly with the design teams of these fashion brands in the US, UK and European market. This gives the Company an edge in showcasing all its new developments to the best brands Worldwide.
Several new products have been introduced by the Company in three different categories:
1. Raw white fashion yarns in blends of cotton and other fibres.
2. Melange/heather fashion yarns
3. Fashion yarns in non-cotton blends suitable for women and children
COMPANY’S OUTLOOK AND
CONCERNS
The Textile industry has made major contribution to the National economy in terms of direct and indirect employee remuneration and net foreign exchange
Earnings. This sector contributes nearly 14% to the Industrial production and 4% of the Gross Domestic Production (GDP) and 27% to the Countries Foreign exchange rate. It provides direct employment to over 45 million people. It is the second largest provider of employment after agriculture. The growth of this industry has direct bearing on the improvement of India’s economy.
The Company while concentrating on increase in export earnings is also trying to boost its revenue in the market through large government exporters with its range of fashionable and trendy yarns.
The Company continues to participate in important Fashion exhibitions Worldwide to showcase its fancy yarn production and improve its export revenue.
FINANCIAL PERFORMANCE
WITH RESPECT TO OPERATIONAL PERFORMANCE
The Company achieved a Sales turnover of Rs. 1028.600 Million during the financial year 2014-2015. Exports were made to nearly 40 countries with a turnover of Rs. 248.00 Million. During the financial year 2015-16, due to launch of new products and starting of Tandur unit and our entry into new international markets the company expects to achieve a turnover of Rs.2500.000 Million in the financial year 2015-16, on a conservative basis.
UNSECURED LOAN
|
PARTICULARS |
31.03.2015 (Rs.
in Million) |
31.03.2014 (Rs.
in Million) |
|
Long-term
Borrowings |
|
|
|
From Directors |
43.234 |
48.719 |
|
Loans and advances from related parties |
61.893 |
11.064 |
|
Loans from Others |
107.990 |
103.667 |
|
Short-term
borrowings |
|
|
|
Fixed Deposits from Public |
5.000 |
13.800 |
|
|
|
|
|
Total |
218.117 |
177.250 |
|
Notes : Long-term
Borrowings 3. Unsecured loan not
to be taken back by the company till CDR. 4. Security: Working Capital shall be secured by way of first pari passu charge on the entire current assets of the company, both present and future and second pari passu charge on the entire fixed assets of the company, both present and future. All existing Term Loans, Corporate Loans, WCTL, FITL, Additional Term Loan and Priority Debt shall be secured by way of first pari passu charge on the entire fixed assets of the company, both present and future and second pari passu charge on the entire current assets of the company, both present and future Pledge of entire shareholding (both present and future) held by the promoters and promoter group representing 68.33% shares (2073859 shares). Note 2.3.2 Unsecured Loans from Directors and their relatives are long term loans carrying rate of interest @ 8% per annum and others long term loans are carrying rate of interest 12% per annum. Note 2.3.3 Hire purchase loans are vehicle loans secured by hypotication of respective financed asset of the company. Short-term borrowings Fixed Deposits from public are repayable in one year
carrying interest rate of 11% p.a. |
||
INDEX
OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10539564 |
13/05/2015 * |
1,862,100,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, Maker Tower E, Cuffe Parade, Colaba, Mumbai, Maharashtra -
400005, INDIA |
C57023053 |
|
2 |
10439150 |
29/06/2013 |
60,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, RAJ BHAVAN ROAD, SOMA JIGUDA,
HYDERABAD, Telangana - 500082, INDIA |
B80488737 |
|
3 |
10312359 |
30/01/2013 * |
210,000,000.00 |
IDBI BANK LIMITED |
115, ANNA SALAI, P.B.NO.805,SAIDAPET, CHENNAI, Tamil Nadu - 600015,
INDIA |
B71091185 |
|
4 |
10273213 |
27/04/2013 * |
65,600,000.00 |
CENTRAL BANK OF INDIA |
CORPORATE FINANCE BRANCH, BANK STREET, KOTI, HYDERABAD, Telangana -
500095, INDIA |
B75752634 |
|
5 |
10183659 |
09/10/2009 |
156,000,000.00 |
STATE BANK OF MYSORE |
SECUNDERABAD BRANCH, S P ROAD, SECUNDERABAD, Telangana - 500003, INDIA |
A72041197 |
|
6 |
10185837 |
23/03/2011 * |
160,000,000.00 |
STATE BANK OF HYDERABAD |
COMMERCIAL BRANCH,, S P ROAD, SECUNDERABAD, Telangana - 500003, INDIA |
B09873993 |
|
7 |
10140496 |
09/10/2009 * |
780,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, RAJ BHAVAN ROAD, SOMA |
A73177503 |
|
8 |
10119533 |
11/08/2008 |
230,000,000.00 |
The Bank of Rajasthan Limited |
59/1/2/1, Kaushalya Estate Lane, Karkhana Road, Secunderabad,
Telangana - 500009, INDIA |
A44477396 |
|
9 |
10017967 |
28/12/2007 * |
500,000,000.00 |
AXIS BANK LIMITED |
6-3-879/B, PULLAREDDY BUILDINGS, GREEN LANDS ROAD, BEGUMPET,
HYDERABAD, Telangana - 500016, INDIA |
A31411184 |
|
10 |
10016571 |
18/02/2008 * |
100,000,000.00 |
IDBI TRUSTEESHIP SERVICE LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17, R.Kamani Marg, Ballard Estate,
Mumbai, Maharashtra - 400001, INDIA |
A58612680 |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
|
Letters of credit |
28.773 |
0.000 |
|
Bank Guarantees |
1.000 |
61.000 |
|
In respect of Bills Discounted & outstanding |
28.317 |
66.823 |
|
In respect of suits filed but not acknowledged as debt |
2.680 |
2.680 |
|
Compensation payable in lieu of bank sacrifice |
53.500 |
0.000 |
Other commitments :
Company remains exposed to liability towards fuel surchage adjustment, which are notified by Power Distribution Companies of Andhra Pradesh pertaining to earlier years, which are being adjusted in future tariff payable for consumption. Accordingly charges are accounted in the year payment / bill raised for the same.
A few law suits have been filed on the company by some of their suppliers/third parties and by the company for recoveries against receivables. The matters are pending for hearing before respective courts, the outcome of which is uncertain. The management has provided for as a matter of prudence which it believes shall be probable outflow of resources.
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2015
(Rs. In Million)
|
Sr. No |
Particulars |
Standalone |
||
|
Quarter Ended |
Half Year Ended |
|||
|
30.09.2015 |
30.06.2015 |
30.09.2015 |
||
|
Unaudited |
Unaudited |
Audited |
||
|
1 |
Income From
Operations |
|
|
|
|
|
a. Net Sales/ Income from Operations (Net of Excise Duty) |
391.261 |
413.736 |
804.997 |
|
|
b. Other Operating Income |
3.702 |
2.840 |
6.542 |
|
|
Total Income from
Operations (Net) |
394.963 |
416.576 |
811.539 |
|
2 |
Expenditure |
|
|
|
|
|
a. Cost of material Consumed |
232.806 |
221.025 |
453.831 |
|
|
b. Purchase of Stock-in trade |
0.000 |
0.000 |
0.000 |
|
|
c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade |
-33.934 |
-27.460 |
-61.394 |
|
|
d. Employees Benefit Expenses |
61.015 |
56.385 |
117.400 |
|
|
f. Depreciation and Amortization Expenses |
23.505 |
23.489 |
46.994 |
|
|
g. Power and Fuel |
60.622 |
51.895 |
112.517 |
|
|
h. Other expenses |
65.260 |
70.133 |
135.393 |
|
|
Total Expenses |
409.274 |
395.467 |
804.741 |
|
3 |
Profit from Operations
before Other Income, Interest and Exceptional Items |
(14.311) |
21.109 |
6.798 |
|
4 |
Other Income |
4.981 |
2.274 |
7.255 |
|
5 |
Profit from
ordinary activities before finance cost & exceptional items |
(9.330) |
23.383 |
14.053 |
|
|
Finance costs |
56.082 |
53.213 |
109.295 |
|
|
Profit from
ordinary activities after finance cost & exceptional items |
65.412 |
(29.830) |
(95.242) |
|
9 |
Exceptional items |
33.787 |
-- |
33.787 |
|
10 |
Profit from
ordinary activities before tax |
(31.625) |
(29.830) |
(61.455) |
|
11 |
Tax Expense |
|
|
|
|
|
Deferred tax liability (Deferred tax assets) |
(9.908) |
(9.217) |
(19.125) |
|
12 |
Net profit from
ordinary Activities after tax |
(21.717) |
(20.613) |
(42.330) |
|
13 |
Extra Ordinary Items (Net of tax expenses) |
-- |
-- |
-- |
|
14 |
Net Profit After
Tax |
(21.717) |
(20.613) |
(42.330) |
|
15 |
Paid-up equity share capital (face value of Rs.10 per share) |
39.949 |
30.350 |
39.949 |
|
16 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year |
-- |
-- |
-- |
|
17 |
Earning Per Share (of Rs.10 each) (not annualized) |
|
|
|
|
|
Before extraordinary items |
|
|
|
|
|
Basic EPS |
(6.46) |
(6.79) |
(13.25) |
|
|
Diluted EPS |
(6.46) |
(6.79) |
(13.25) |
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
17 |
Public Shareholding |
|
|
|
|
|
- No. of shares |
961138 |
961138 |
961138 |
|
|
- Percentage of shareholding |
24.06% |
31.67% |
24.06% |
|
18 |
Promoter &
Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- No. of shares |
2073859 |
1944559 |
2073859 |
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
68.36% |
93.77% |
68.36% |
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
51.91% |
64.07% |
51.91% |
|
|
b) Non-encumbered |
|
|
|
|
|
- No. of shares |
959863 |
129300 |
959863 |
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
31.64% |
6.23% |
31.64% |
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
24.03% |
4.26% |
24.03% |
|
PARTICULAR |
3 months ended 30.09.2015 |
|
B.
Investor Complaints |
|
|
Pending at the beginning of the quarter |
Nil |
|
Receiving during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unreserved at the end of the quarter |
Nil |
STATEMENT OF ASSETS
AND LIABILITIES As on 30.09.2015
(Rs. In Million)
|
SOURCES
OF FUNDS |
30.09.2015 |
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
134.949 |
|
(b) Reserves & Surplus |
140.312 |
|
(c) Money received against
share warrants |
0.000 |
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
275.261 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
1238.600 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
|
(c) Other long term
liabilities |
48.086 |
|
(d) long-term provisions |
5.304 |
|
Total
Non-current Liabilities (3) |
1291.990 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
454.542 |
|
(b) Trade payables |
357.222 |
|
(c) Other current liabilities |
327.231 |
|
(d) Short-term provisions |
0.482 |
|
Total
Current Liabilities (4) |
1139.477 |
|
|
|
|
TOTAL |
2706.728 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
|
|
(i) Tangible assets |
1418.041 |
|
(ii) Intangible Assets |
|
|
(iii) Capital work-in-progress |
|
|
(iv) Intangible assets under
development |
|
|
(b) Non-current Investments |
|
|
(c) Deferred tax assets (net) |
42.268 |
|
(d) Long-term Loan and Advances |
56.421 |
|
(e) Other Non-current assets |
0.000 |
|
Total
Non-Current Assets |
1516.730 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
0.000 |
|
(b) Inventories |
710.379 |
|
(c) Trade receivables |
142.101 |
|
(d) Cash and cash equivalents |
66.307 |
|
(e) Short-term loans and
advances |
46.972 |
|
(f) Other current assets |
224.239 |
|
Total
Current Assets |
1189.998 |
|
|
|
|
TOTAL |
2706.728 |
Notes :
1. The above financial results were reviewed by Audit Committee and taken on record by the Board of Directors at its meeting held on 14th November, 2015.
2. The results were subjected to limited review by the Statutory Auditors of
the company.
3. During the period, there was an instance of fire in Spinning unit at Tandur.
The Company has incurred a loss of Rs. 33.787 Million towards damage of Cotton
Yarn, Stores etc., and has filed insurance claim which is under process of
acceptance. The Company has recognised the insurance claim of Rs. 33.787
Million pending acceptance by the Insurance Company which has been disclosed as
an Exceptional item.
4. The Company has only single reportable business segment.
FIXED ASSETS
- Freehold Land
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Office Equipment
- Vehicles
- Revalued Plant and machinery
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.66.51 |
|
|
1 |
Rs.100.43 |
|
Euro |
1 |
Rs.70.44 |
INFORMATION DETAILS
|
Information
Gathered by : |
DPA |
|
|
|
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILITY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
27 |
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.