MIRA INFORM REPORT

 

 

Report No. :

356545

Report Date :

28.12.2015

 

IDENTIFICATION DETAILS

 

Name :

HBL POWER SYSTEMS LIMITED (w.e.f.09.12.2006)

 

 

Formerly Known As :

HBL NIFE POWER SYSTEMS LIMITED (w.e.f.26.04.2000)

 

SAB NIFE POWER SYSTEMS LIMITED

 

 

Registered Office :

8-2-601, Road No. 10, Banjara Hills, Hyderabad – 500034, Telangana

Tel. No.:

91-40-23355575/ 23351934/ 23355085/ 23355585

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

29.08.1986

 

 

Com. Reg. No.:

36-006745

 

 

Capital Investment / Paid-up Capital :

Rs. 253.000 Million

 

 

CIN No.:

[Company Identification No.]

L40109TG1986PLC006745

 

 

IEC No.:

0988000687

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDH00591D

 

 

PAN No.:

[Permanent Account No.]

AAACH8421K

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in designing, development and manufacture of specialized batteries and DC systems in India and other engineering products. (Registered activity)

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (52)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 17000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

HBL Power System Limited was incorporated in 1986 by Dr. AJ Prasad. The company focuses on engineering products/services with the main line of business activity as manufacturing of lithium and lead reserves batteries.

 

The rating takes into account company’s experienced promoters, established track record of operations, continued financial support from the holding company in the form of unsecured loans, moderate order book and diversified revenue profile. The ratings also take into account the growth in total operating income, improved sales realizations albeit decline in PAT levels.

 

The ratings are, however, constrained by the increasing raw material prices, leveraged capital structure, moderate debt coverage indicators and elongated operating cycle.

 

However, trade relations are fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good for business dealings at usual trade terms and conditions.

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – 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

CARE

Rating

Long Term Bank facilities : A-

Rating Explanation

Adequate degree of safety and low credit risk.

Date

09.10.2014

 

Rating Agency Name

CARE

Rating

Short Term Bank facilities : A2+

Rating Explanation

Strong degree of safety and low credit risk.

Date

09.10.2014

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

 

 

INFORMATION PARTED BY

 

Name :

Mr. G. B. S. Naidu

Designation :

General manager

Contact No.:

91-8498916655

 

 

LOCATIONS

 

Registered/ Head Office :

8-2-601, Road No. 10, Banjara Hills, Hyderabad – 500034, Telangana, India

Tel. No.:

91-40-23355575/ 23351934/ 23355085/ 23355585

Fax No.:

91-40-23355048/ 23353189

E-Mail :

contact@hbl.in

finance@hbl.in

nrkrishna@hbl.in

Website :

http://www.hbl.in

 

 

Factory 1 :

Aliabad Post, Lalgadi Malakpet, Shameerpet Mandal, R.R. District, Hyderabad - 500078, Telangana , India

Tel. No.:

91- 8418-244640

Fax No.:

91- 8418-301652/ 301574

E-Mail :

contact@hbl.in

 

 

Factory 2 :

Survey No. 64-67, 77-81, Nandigaon Village, Kothur Mandal, Mahaboobnagar District - 509223, Andhra Pradesh, India

Tel. No.:

91-8548-240456

Fax No.:

91-8548-240474

E-Mail :

contact@hbl.in

 

 

Factory 3 :

Survey No. 351, Thumukunta Village, Shameerpet Mandal, Rangareddy District, Hyderabad - 500078, Telangana, India

Tel. No.:

91-8418-247680

Fax No.:

91-8418-247683

E-Mail :

emu@hbl.in

 

 

Factory 4 :

Sy No 155 to 156 (Post) Bhootpur (Village and Mandal), Mahaboobnagar District - 509001, Andhra Pradesh, India

Tel. No.:

91-8542-236539

Fax No.:

91-8542-236205

E-Mail :

contact@hbl.in

 

 

Factory 5 :

Sy 123-126, 138(p) to 144(p), Kandivasala Village, Pusapatirega Mandal, Vizayanagaram District - 535204, Andhra Pradesh, India

Tel. No.:

91-8922-258159

E-Mail :

contact@hbl.in

 

 

Factory 6 :

Plot No. Q6 to Q10, R1 to R10 S1 to S9, Phase III, VSEZ, Duvvada, Visakhapatnam - 530046, Andhra Pradesh, India 

Tel. No.:

91-891-2543255-56

E-Mail :

contact@hbl.in

 

 

Factory 7 :

Plot No. 1, Sector 8A, IIE Ranipur (BHEL Haridwar - 249403, Uttarakhand, India

Tel. No.:

91-1334-235420

Fax No.:

91-1334-235421

E-Mail :

contact@hbl.in

 

 

Factory 8 :

Plot No. 425, Sector - 8,  IMT Manesar, Gurgaon - 122050, Haryana, India

Tel. No.:

91-124-4240168/ 4240058

E-Mail :

contact@hbl.in

 

 

Sales Offices  :

Located at:

 

·         Ahmedabad 

·         Bangalore 

·         Bhopal 

·         Bhubneshwar 

·         Chandigarh 

·         Chennai 

·         Delhi 

·         Guwahati 

·         Hyderabad 

·         Jaipur 

·         Kerala 

·         Kolkata 

·         Lucknow 

·         Raipur 

·         Mumbai 

·         Patna 

·         Ranchi 

 

 

Channel Sales Offices :

Located at:

 

·         Bhopal 

·         Hyderabad 

·         Patna 

·         Ranchi 

·         Vijayawada 

 

 

Overseas Offices  : 

Located at:

 

·         USA

·         Saudi Arabia

·         Germany

 

 

DIRECTORS

 

As on 31.03.2015

 

Name :

Mrs. Preeti Khandelwal

Designation :

Director

Address :

8-2-350/5/1, Road No.3,, Banjara Hills, Hyderaba - 500034, Telangana, India

Date of Birth/Age :

24.03.1971

Qualification :

B Com, ACS

Experience :

She is a qualified Company Secretary and has expertise in Company Law and FEMA related issues.

Date of Appointment :

02.03.2009

DIN No.:

00027999

 

 

Name :

Mr. Aluru Jagadish Prasad

Designation :

Managing Director

Address :

8-2-601, Road # 10, Banjara Hills, Hydrabad - 500034, Telangana, India

Qualification :

B Tech from IIT (Kharagpur); MS in Management from MIT, USA, Doctorate in International Business from Columbia University, USA.

Expertise in specific functional Area :

Overall management of the company with specific focus on product development and promotion of export sales.

Date of Birth :

03.11.1945

Date of Appointment :

29.08.1986

DIN No.:

00057275

 

 

Name :

Mr. Ganapati Rao Poruri

Designation :

Director

Address :

H No:2-2-12/2 Flat No:401, Bindu Residency, D D Colony, Hyderabad - 500007, Telangana, India

Date of Appointment :

25.04.2005

DIN No.:

00089685

 

 

Name :

Mr. Srinath Satyanarayana Subramanya Mikkilineni

Designation :

Whole-Time Director

Address :

Plot-528, Road # 25, Jublee Hills, Hyderabad - 500033, Telangana, India

Date of Appointment :

01.09.2010

DIN No.:

00319175

 

 

Name :

Mr. Sanjiv Singhal

Designation :

Nominee Director

Address :

Flat No. 51, 5th Floor, Seagull, Carmichael Road, Mumbai - 400026, Maharashtra, India

Date of Birth :

23.03.1967

Qualification :

MBA from the Wharton Business School (USA), MA with distinction from the University of Essex, UK and BA with honours from Delhi University.

Expertise in specific functional Area :

Previously working with Standard Chartered Bank as head of Structured Finance for India and later SE Asia out of Singapore. He has vast banking experience and brings in a good credit judgment. He also spent the first three years of his working life as an entrepreneur wherein he took over an ailing automobile components manufacturing company and turned it around.

 

 

Date of Appointment :

14.08.2012

DIN No.:

02408616

 

 

Name :

Mr. Ajay Bhaskar Limaye

Designation :

Nominee Director

Address :

G 503 Kumar Padmaja, Behind Gandhi Bhavan Kothrud, Pune - 411038, Maharashtra, India

Date of Birth :

20.05.1969

Qualification :

CFA Charter holder with prior qualification as an Engineer with an MBA in Finance

Expertise in specific functional Area :

Vast experience in the investment industry in India. During this period, he has been involved in managing various types of funds including Private Equity Fund (diversified growth capital), Venture Capital fund, Technology Fund, Infrastructure Fund and Special Situations Fund, besides listed market investments

Date of Appointment :

14.02.2013

DIN No.:

02762738

 

 

KEY EXECUTIVES

 

Name :

M V S S Kumar

Designation :

Company Secretary

Address :

1-4-880/26, Bank Of Baroda Colony, Gandhi Nagar, Hyderabad - 500080, Telangana, India

Date of Appointment :

15.01.2011

PAN No.:

ALSPM0163F

 

 

Audit Committee :

·         Mr. P Ganapathi Rao, Chairman of the Committee

·         Mrs. Preeti Khandelwal

 

Name :

Mr. MSS Srinath

Date of Birth :

23.04.1969

Date of Appointment :

24.11.1997

Qualification :

BA (Hons) Economics

Expertise in specific functional Area :

Overall the Marketing activities and other administrative affairs of the company.

 

 

 

 

MAJOR SHAREHOLDERS / 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

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

43974879

17.38

http://www.bseindia.com/include/images/clear.gifBodies Corporate

143476153

56.71

http://www.bseindia.com/include/images/clear.gifSub Total

187451032

74.09

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

187451032

74.09

(B) Public Shareholding

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

13245926

5.24

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

469577

0.19

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

745690

0.29

http://www.bseindia.com/include/images/clear.gifSub Total

14461193

5.72

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

12007431

4.75

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

32045953

12.67

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

5231359

2.07

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

1803032

0.71

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

1001821

0.40

http://www.bseindia.com/include/images/clear.gifClearing Members

308004

0.12

http://www.bseindia.com/include/images/clear.gifTrusts

493207

0.19

http://www.bseindia.com/include/images/clear.gifSub Total

51087775

20.19

Total Public shareholding (B)

65548968

25.91

Total (A)+(B)

253000000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1)

0

0.00

http://www.bseindia.com/include/images/clear.gif(2)

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

253000000

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in designing, development and manufacture of specialized batteries and DC systems in India and other engineering products. (Registered activity)

 

 

Products :

Product Description

Item Code No. (ITC Code)

Lead Acid Batteries

850720.00

Nickel Cadmium Batteries

850730.00

Silver Zinc and Other Silver based Batteries (Torpedo)

850620.00

Silver Zinc Batteries (Aircraft)

850780.00

Power Electronic Rectifiers

850440.09

Uninterrupted Power Supply Systems

847199.05

Perforated Steel Strip

721250.09

Lithium Batteries

850620.00

Battery Materials

850790.09

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

 

Products :

Not Divulged

Countries :
  • Spain
  • South africa
  • Taiwan
  • Hongkong
  • Sri lanka
  • USA
  • UK

 

 

Imports :

 

Countries :

Germany

 

 

Terms :

Not Divulged

 

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

500 (Approximately) 

 

 

Bankers :
  • State Bank of India
  • State Bank of Hyderabad
  • IDBI Bank Limited
  • Axis Bank Limited
  • ICICI Bank Limited

 

 

Facilities :

Secured Loan

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Long-term Borrowings

 

 

Secured Loans from

 

 

IDBI Bank Limited

125.000

171.360

State Bank of India

0.000

215.963

State Bank of Hyderabad

0.000

105.000

ICICI Bank Limited

0.000

230.000

HDFC Bank Limited

383.100

0.0000

Secured Loans from Others

 

 

Against Vehicles from HDFC Bank

4.799

6.221

 

 

 

Short-term borrowings

 

 

Secured Working Capital Loans from

 

 

State Bank of India

1242.494

1374.863

State Bank of Hyderabad

191.018

254.742

IDBI Bank Ltd

332.125

362.562

IDBI Short Term Loan

180.000

0.000

ICICI Bank Ltd

370.643

497.979

Axis Bank Ltd

293.821

397.210

Axis Bank Ltd Export Packing Credit

0.000

98.053

Buyers Credit from Banks

473.094

543.736

 

 

 

Total

3596.094

4257.689

Note :

 

Long Term Borrowing :

 

Current Maturities of Long Term Loans

 

instalments due within 12 months from the date of Balance Sheet classified as current as shown above are disclosed under " Other Current Liabilities"

 

Term Loans :

 

The particulars of loans drawn, nature of security, terms of repayment, rate of interest, instalments due and loan wise outstanding are as under.

 

Term Loan from IDBI and HDFC :

 

The capex term loan of Rs.250.000 Million is sanctioned by IDBI Bank for setting up of Spun Concrete Poles unit with a project cost of Rs.335.000 Million with a capacity of 100,000 poles p.a. at Narsaraopet, Guntur District, Andhra Pradesh. The loan is secured by pari passu first charge on the entire fixed assets of the company both present and future. This loan is also guaranteed by Managing Director, another Director, Smt. A. Umadevi and Smt. Kavita Prasad in their personal capacities.

 

Term Loan I of Rs.720.000 Million is to refinance the existing debt and Term Loan II of Rs.200.000 Million is towards the refinancing of capital expenditure of the Company. Both the loans are secured by a first charge on the entire fixed assets of the Company both present and future. These loans are also guaranteed by Managing Director, and another Director Kavita Prasad in their personal capacities.

 

Other Loans :

 

(a) HDFC Bank

 

The Term Loans for acquiring vehicles are secured by exclusive hypothecation of vehicles acquired through execution of D.P. Note.

 

Short-term borrowings

 

The Working Capital Loans from the State Bank of India, State Bank of Hyderabad, IDBI Bank Limited, ICICI Bank Limited and Axis Bank are secured by a first charge on all the chargeable current assets and by a second charge on the fixed assets (both present and future) of the Company. Short term loan (Adhoc Cash Credit) from IDBI Bank Limited is repayable within 90 days with interest @ 13%. All the loans are also guaranteed by Managing Director, two other Directors of the Company, and Smt. A. Uma Devi in their personal capacities.

 

Purchase Bill Discounting from Kotak Mahindra Bank Limited. Is guaranteed by CMD and a Director of the Company in their personal capacity. Purchase Bill Discounting from IDBI Bank Limited. Is secured by accepted bill of exchange and post dated cheque/ standing instructions for making payment on due date

 

The facilities extended by YES Bank are secured by subservient charge on all the current and movable fixed assets of the company. Further the facilities are guaranteed by Managing Director and one other promoter director of the Company.

 

Working Capital Short Term Loan from HDFC Bank is secured by personal guarantee of CMD and is repayable within 90 days with interest @ 10.50% p.a.

 

Inter corporate deposit from holding company is repayable on demand with Interest @ 12% p.a.

 

Loan from Directors is repayable on demand with interest @ 12% p.a.

 

Financial Institution:

Housing Development Finance Corporation Limited, Basheerbagh, Hyderabad, Telnagana, India

 

 

Auditors 1 :

 

Name :

Satyanarayana and Company

Chartered Accountants

Address :

Amar Mansion, Ranigunj, Secunderabad – 500003, Andhra Pradesh, India

 

 

Auditors 2 :

 

Name :

Rao and Kumar

Chartered Accountants

Address :

10-19-15, Soudamani, Seripuram, CBM Compound, Visakhapatnam – 530003, Andhra Pradesh, India

 

 

Cost Auditors :

 

Name :

Narasimha Murthy and Company

Cost Accountants

Address :

Hyderabad, Andhra Pradesh, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Company :

Beaver Engineering and Holdings Private Limited, Hyderabad

 

 

Subsidiaries :

·         SCIL Infracon Private Limited

·         HBL Germancy, GMBH

·         HBL America INC

·         HBL Suntech LLP

 

 

Joint Venture :

Gulf Batteries Company Limited, Kingdom of Saudi Arabia

 

 

Controlled Companies:

Kairos Engineering Limtied, Hyderabad.

 

 

Associate :

·         Naval Systems and Technologies Private Limited

·         VARP Power Private Limited.

 

 

CAPITAL STRUCTURE

 

As on 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

300000000

Equity Shares

Re.1/- each

Rs.300.000 Million

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

253000000

Equity Shares

Re.1/- each

Rs.253.000 Million

 

 

 

 

 

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

 

Equity Shares

31.03.2015

No. of Shares

Rs. in Million

At the beginning of the period

253000000

253.000

Issued during the period

--

--

Outstanding at the end of the period

253000000

253.000

 

Terms/rights attached to equity shares

 

The company has only one class of equity shares having a par value of `1 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 the ensuing Annual General Meeting.

 

Shares held by holding/ultimate holding company

 

Out of equity shares issued by the company, details of shares held by its holding company is as below:

 

Name of the Shareholder

No. of Shares

 

 

Beaver Engineering and Holdings Limited

143059443

 

 

Details of shareholders holding more than 5% shares in the company

 

Name of the Shareholders

31.03.2015

No. of Shares

% holding in the class

Equity shares of Re.1 each fully paid

 

 

Beaver Engineering and Holdings Limited

143059443

56.55

A J Prasad

27654500

10.93

Citigroup Global Markets Mauritius Private Limited

--

--

Reliance Capital Limited

--

--

 

 

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

253.000

253.000

253.000

(b) Reserves & Surplus

5623.338

5598.566

5207.660

(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)

5876.338

5851.566

5460.660

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1987.001

2240.726

3353.057

(b) Deferred tax liabilities (Net)

172.616

245.670

225.142

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

19.789

20.300

15.872

Total Non-current Liabilities (3)

2179.406

2506.696

3594.071

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

4266.726

4324.182

3588.664

(b) Trade payables

1821.233

2930.755

1922.144

(c) Other current liabilities

1399.973

1878.503

2100.073

(d) Short-term provisions

198.423

189.783

137.859

Total Current Liabilities (4)

7686.355

9323.223

7748.740

 

 

 

 

TOTAL

15742.099

17681.485

16803.471

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

4217.743

4581.292

4736.372

(ii) Intangible Assets

222.079

160.010

126.061

(iii) Capital work-in-progress

155.898

211.631

262.406

(iv) Intangible assets under development

337.931

349.713

416.054

(b) Non-current Investments

227.498

294.354

1495.314

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

134.375

104.719

98.573

(e) Other Non-current assets

24.322

140.763

122.914

Total Non-Current Assets

5319.846

5842.482

7257.694

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

5092.589

5975.670

4330.269

(c) Trade receivables

4087.675

4580.816

4313.807

(d) Cash and cash equivalents

461.142

464.895

211.797

(e) Short-term loans and advances

780.847

817.622

689.904

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

10422.253

11839.003

9545.777

 

 

 

 

TOTAL

15742.099

17681.485

16803.471

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

Revenue from Operations

13300.703

12807.935

11974.169

 

Other Income

166.052

100.153

91.319

 

TOTAL (A)

13466.755

12908.088

12065.488

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

7525.290

8229.468

7303.673

 

Purchases of Stock-in-Trade

42.082

28.299

102.517

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

639.264

(381.535)

(718.540)

 

Employees benefits expense

948.230

950.099

1178.876

 

Exceptional items

150.382

(565.398)

(77.856)

 

Other expenses

2691.358

2983.628

2688.658

 

TOTAL (B)

11996.606

11244.561

10477.328

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

1470.149

1663.527

1588.160

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

706.602

757.387

933.984

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

763.547

906.140

654.176

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

510.385

385.095

400.850

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

253.162

521.045

253.326

 

 

 

 

 

Less

TAX (H)

106.955

70.940

48.884

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-H)   (I)

146.207

450.105

204.442

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

1781.224

2512.948

2596.324

 

Services

7.772

44.999

94.471

 

TOTAL EARNINGS

1788.996

2557.947

2690.795

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials, Components & Spares

2247.984

3775.041

3198.843

 

Capital Items / Equipment

2.134

6.594

52.376

 

TOTAL IMPORTS

2250.118

3781.635

3251.219

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

0.58

1.78

0.81

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

579.991

745.517

1208.853

Cash generated from operations

868.612

(425.399)

661.990

90

814.910

(458.642)

587.233

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2015

30.09.2015

Audited / Unaudited

Unaudited

Unaudited

Net Sales

3042.110

3130.980

Total Expenditure

2685.450

2832.760

PBIDT (Excl OI)

356.660

298.220

Other Income

15.090

26.230

Operating Profit

371.750

324.450

Interest

157.190

137.460

Exceptional Items

NA

NA

PBDT

214.560

186.990

Depreciation

125.460

114.190

Profit Before Tax

89.100

72.800

Tax

22.000

17.000

Provisions and contingencies

NA

NA

Profit After Tax

67.100

55.800

Extraordinary Items

NA

NA

Prior Period Expenses

NA

NA

Other Adjustments

NA

NA

Net Profit

67.100

55.800

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

1.10

3.51

1.71

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

11.05

12.99

13.26

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.69

3.10

1.73

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.04

0.09

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.16

1.25

1.49

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.36

1.27

1.23

 

 

STOCK PRICES

 

Face Value

Rs.1.00/-

Market Value

Rs.46.80/-

 

 

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

253.000

253.000

253.000

Reserves & Surplus

5207.660

5598.566

5623.338

Net worth

5460.660

5851.566

5876.338

 

 

 

 

long-term borrowings

3353.057

2240.726

1987.001

Short term borrowings

3588.664

4324.182

4266.726

Current Maturities Of Long-Term Debts

1208.853

745.517

579.991

Total borrowings

8150.574

7310.425

6833.718

Debt/Equity ratio

1.493

1.249

1.163

 

 

 

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

11974.169

12807.935

13300.703

 

 

6.963

3.847

 

 

 

 

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

11974.169

12807.935

13300.703

Profit

204.442

450.105

146.207

 

1.71%

3.51%

1.10%

 

 

 

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%

--

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

Yes

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

GENERAL INFORMATION:

 

1. Nature of Industry:

The Company is engaged in designing, development and manufacture of specialized batteries and DC systems in India and other engineering products. With over three decades of its experience in this field, the Company offers a wide range of batteries and associated electronics providing its customers, custom built solutions to meet critical requirements. The Company operates from different manufacturing facilities and regional offices across India.

 

2. The Company has commenced its commercial activity in the year 1977.

 

3. The Company is in existence for over 3 decades hence, clause 3 of General Information is not applicable.

 

 

PERFORMANCE REVIEW 2014-15:

 

While the regulatory and procedural reforms undertaken by the new Government since taking office in June last year did help improve the business climate prevailing in the country, weak demand continued to constrain the private sector activity. Economic activity witnessed a steady, albeit slow recovery through the year. Even amidst this scenario, the Company demonstrated resilience to economic cycles. Sales during the year showed a marginal improvement. Greater emphasis was laid on cost control measures and operational efficiencies. This yielded a profit of Rs.403.545 Million during the year, compared to a loss of Rs.44.353 Million in the previous year. After providing for Rs.150.382 Million towards exceptional items (compared to Rs.565.398 Million income in the previous year), and a suitable provision for depreciation as per rates in Schedule II of the Companies Act 2013 and amortization of expenses, Profit Before Tax (PBT) was Rs.253.162 Million as compared to Rs.521.045 Million in the previous year. Net Profit after Tax (PAT) tax and adjustments for the year was Rs.146.207 Million as compared to Rs.450.105 Million in the previous year.

 

During the year severe damage was caused by Hudhud cycione to stocks, assets and operations in the Company’s Lead Acid Plant at Vizianagaram and Nickel and PE Plants at SEZ. Visakhapatnam. The impact of the cyclose was so serve, it resulted in a loss of production for about 30 days and another 30 days partially during restoration. The Company had lodged a claim with the Insurers towards recovery of the losses and also for loss of profit. A suitable provision was made for loss incurred due to damages to Inventory and repairs and restoration expenses including interim settlement in the accounts of the year. Final settlement of the claim is pending with the Insurers.

 

CURRENT YEAR’S PERFORMANCE:

 

On the whole overall markets have not shown significant growth. Telecom market demand (which constitutes the Company’s prime business segment) continues to be stagnant with a modest growth. Delays in Railway and Defence business segments also have an affect on Company’s operations. The Directors have taken necessary corrective steps and barring unforeseen circumstances, performance of the Company in the coming years is expected to be encouraging. The Management Discussion and Analysis section of the Annual Report presents a detailed business review of the Company.

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Long-term Borrowings

 

 

Interest Free Sales Tax Loan (Deferred Payment Laibility)

84.975

117.162

Loan from HPFSIPL

6.290

10.338

Finance Lease Obligations from HPFSIPL

2.837

4.682

Loan from Holding Company

1380.000

1380.000

 

 

 

Short-term borrowings

 

 

Loans other than repayable on demand

 

 

Purchase Bill Discounting from Kotak Mahindra Bank Ltd

169.138

233.638

Purchase Bill Discounting from IDBI Bank Ltd

335.319

143.040

Sale Bills (LC backed) Discounted with SBI

139.196

106.519

Sale Bills (Clean) Discounted with Yes Bank Ltd

176.778

0.000

Sale Bills (LC backed) Discounted with ICICI Bank Ltd

0.000

7.919

HDFC Short Term Loan

250.000

150.000

Yes Bank Ltd Exported Packing Credit

0.000

88.259

Yes Bank Ltd Current Account

0.000

9.062

 

 

 

Loans repayable on demand

 

 

Inter Corporate Deposit from Holding Company

38.000

24.500

Loans from Directors

75.100

32.100

Total

2657.633

2307.219

 

Note :

 

Long-term Borrowings

 

(a) Interest Free Sales Tax Loan (IFST):

 

IFST Loan of Rs. 1171.62 lakhs shown under unsecured loan represents the Sales tax payable by the Company given as Loan by A.P State Government under a scheme, to be repaid without interest after 14 years from the date of availment. The loan requires creation of a charge on the assets of the Company. Pending creation of charge, the amount is shown as ‘Unsecured Loan’ to be regrouped as Secured Loan as and when the charge is created.

 

(b) Term Loan from Hewlett-Packard Financial Services India Pvt Ltd (HPFSIPL) towards implementation of SAP Project is repayable in 20 quarterly instalments from the date of loan with interest at the rate ranging between 11% and 13%. The loan is also guaranteed by a Director of the Company.

 

(c) Finance Lease of Assets from Hewlett-Packard Financial Services India Pvt Ltd (HPFSIPL) for Implementation of SAP Project is repayable by way of lease rentals over a period of 5 years and is also guaranteed by a Director of the Company.

 

(d) Loan from Holding Company is Interest free and is repayable after a moratorium period of 10 years from the date of first with drawl.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10564134

01/09/2015 *

250,000,000.00

IDBI Bank Limited

Specialised Corporate Branch, Corporate Banking Group, Chapel Road, Hyderabad, Telangana - 500001, INDIA

C64822968

2

10550947

01/09/2015 *

920,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA

C65213100

3

10450609

28/09/2013 *

300,000,000.00

YES BANK LIMITED

9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. 
ANNIE BESANT ROAD, WORLI, MUMBAI, Maharashtra - 
400018, INDIA

B87600219

4

90140233

01/09/2015 *

8,600,000,000.00

State Bank of India

CAG Branch, OZONE, 2nd Floor, 6-3-669, Punjagutta 
Main Road, Hyderabad, Telangana - 500082, INDIA

C65213316

5

90140436

31/08/1998

288,756.00

DCL FINANCE LTD

SOMAJIGUDA, HYDERABAD, Andhra Pradesh, INDIA

-

6

90140435

06/08/1998

871,823.00

DCL FINANCE LTD

SOMAJIGUDA, HYDERABAD, Andhra Pradesh, INDIA

-

7

90140434

17/07/1998

1,031,344.00

DCL FINANCE LTD

6-3-569/1; DCL CHAMBERS OPP RTA OFFICE, SOMAJIGUDA, HYDERABAD, Andhra Pradesh, INDIA

-

8

90140433

11/05/1998

1,231,493.00

DCL FINANCE LTD

6-3-569/1; DCL CHAMBERS OPP RTA OFFICE, SOMAJIGUD 
A, HYDERABAD, Andhra Pradesh, INDIA

-

9

90140432

18/04/1998

723,131.00

DCL FINANCE LTD

6-3-569/1; DCL CHAMBERS OPP RTA OFFICE, SOMAJIGUDA, HYDERABAD, Andhra Pradesh, INDIA

-

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER 2015

 

        (Rs. In Million)

 

 

Particulars

quarter ended 30.09.2015

quarter ended 30.06.2015

Half year ended 30.09.2015

1

 

Income from Operations

 

 

 

 

 

Sales/Income from Operations (Gross)

3130.982

3042.106

6173.088

 

 

b) Other Operating Income

--

--

--

 

Total Income from Operations (Net)

3130.982

3042.106

6173.088

2

Expenses

 

 

 

 

a)

Cost of Materials consumed

1449.301

2077.611

3526.912

 

b)

Purchase of Stock-in-trade

--

--

--

 

c)

Changes in inventories of finished goods, work-in-progress and stock-in-trade

444.531

(278.233)

166.298

 

d)

Employee benefit expenses

241.188

247.486

488.674

 

e)

Depreciation and amortization expense

114.194

125.460

239.654

 

f)

Other expenses

697.745

638.573

1336.318

 

Total Expenses

2946.959

2810.897

5757.856

 

 

 

 

 

3

 

Profit /(Loss) from operations before other income, finance costs and exceptional items

184.023

231.209

415.232

4

Other Income

26.228

15.087

41.315

5

Profit /(Loss) from ordinary activities before finance costs and exceptional items

210.251

246.296

456.547

6

Finance Costs

137.456

157.194

594.650

7

Profit /(Loss) from ordinary activities after finance costs but before exceptional items

72.795

89.102

161.897

8

Exceptional Items

--

--

--

9

Profit /(Loss) from ordinary activities before tax

72.795

89.102

161.897

10

Tax Expense

17.000

22.000

39.000

11

Net Profit /(Loss) from ordinary activities after tax

55.795

67.102

122.897

12

Paid up equity share capital (Eq. shares of  Rs.10/- each)

253.000

253.000

253.000

13

Reserve excluding revaluation reserves

-

-

-

14

 

Earnings per share (before/after extraordinary items) of  Rs.10/- each

 

 

 

 

 

Basic & Diluted

0.22

0.27

0.49

 

 

 

 

 

 

A

 

PARTICULARS OF SHAREHOLDING

 

 

 

1

 

Public Shareholding

 

 

 

 

 

- No. of Shares

65548968

65617718

65617718

 

 

- Percentage of Shareholding

25.91%

25.94%

25.94%

2

 

Promoters and promoter group shareholding

 

 

 

 

 

a) Pledged/Encumbered

 

 

 

 

 

- Number of shares

Nil

Nil

Nil

 

 

- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)

Nil

Nil

Nil

 

 

- Percentage of shares (as a % of the total share capital of the Company)

Nil

Nil

Nil

 

 

b) Non- encumbered

 

 

 

 

 

- Number of shares

187451032

187382282

187382282

 

 

- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)

100.00%

100.00%

100.00%

 

 

- Percentage of shares (as a % of the total share capital of the Company)

74.09%

74.06%

74.06%

 

 

Particulars

Quarter Ended

30.09.2015

Pending at the beginning of the quarter

Nil

Received during the quarter

51

Disposed of during the quarter

51

Remaining unresolved at the end of the quarter

Nil

 

 

  1. The Unaudited results for the quarter ended 30th September, 2015 were reviewed by the Audit Committee in its meeting held on 13th November, 2015 and approved by the Board of Directors at the meeting held on 13th November, 2015.

 

2. The results were also subjected to Limited Review by the Statutory Auditors of the Company

 

3. Other Income include Rs. 182 Lakhs on account of Foreign Exchange Fluctuation.

 

4. With effect from 1st April 2015, the company is in the process of migration from its existing accounting package on to SAP Platform, which is at an advanced stage.


5. Previous years figures regrouped wherever necessary.

 

 

STATEMENT OF ASSETS ANS LIABILITIES AS ON 30TH SEPTEMBER 2015

 

SOURCES OF FUNDS

30.09.2015

 

(Half Year ended)

 

 

I.              EQUITY AND LIABILITIES

 

(1)Shareholders' Funds

 

(a) Share Capital

253.000

(b) Reserves & Surplus

5746.232

(c) Money received against share warrants

0.000

 

 

(2) Share Application money pending allotment

0.000

Total Shareholders’ Funds (1) + (2)

5999.237

 

 

(3) Non-Current Liabilities

 

(a) long-term borrowings

1891.398

(b) Deferred tax liabilities (Net)

159.616

(c) Other long term liabilities

0.000

(d) long-term provisions

22.789

Total Non-current Liabilities (3)

2073.803

 

 

(4) Current Liabilities

 

(a) Short term borrowings

3782.823

(b) Trade payables

1508.017

(c) Other current liabilities

1759.894

(d) Short-term provisions

185.891

Total Current Liabilities (4)

7236.625

 

 

TOTAL

15309.665

 

 

II.          ASSETS

 

(1) Non-current assets

 

(a) Fixed Assets

 

(i) Tangible assets

4734.547

(ii) Intangible Assets

0.000

(iii) Capital work-in-progress

0.000

(iv) Intangible assets under development

0.000

(b) Non-current Investments

227.498

(c) Deferred tax assets (net)

0.000

(d)  Long-term Loan and Advances

136.679

(e) Other Non-current assets

208.852

Total Non-Current Assets

5307.576

 

 

(2) Current assets

 

(a) Current investments

0.000

(b) Inventories

4848.486

(c) Trade receivables

3953.495

(d) Cash and cash equivalents

348.574

(e) Short-term loans and advances

851.534

(f) Other current assets

0.000

Total Current Assets

10002.089

 

 

TOTAL

15309.665

 

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30TH SEPTEMBER 2015

 

 

Particulars

quarter ended 30.09.2015

quarter ended 30.06.2015

Half year ended 30.09.2015

Particulars

Segment Revenue

 

 

 

a) Batteries

2581.343

2811.873

5393.216

b) Electronics

204.579

127.015

331.594

c) Unallocated

371.177

158.585

529.762

Total

3157.099

3097.473

6254.572

Less: Inter Segment Revenue

26.117

55.367

81.484

Net Sales/Income from Operations

3130.982

3042.106

6173.088

 

 

 

 

Segment Results

 

 

 

Profit/(Loss) before Tax .Exceptional items and Interest

 

 

 

from each segment

 

 

 

a) Batteries

250.946

434.576

685.522

b) Electronics

(8.532)

(59.314)

(67.846)

c) Unallocated

39.098

(33.757)

5.341

Total

281.512

341.505

623.017

Less: i) Interest

137.456

157.194

294.650

         II) Exceptional Items

--

-

--

        III) Unallocable Expenditure net of

97.489

110.296

207.785

       IV) Unallocable Income

26.228

15.087

41.315

Total Profit / (Loss) before Tax

72.795

89.102

161.897

 

 

 

 

Segment Wise Capital Employed

 

 

 

(assets Minus Liabilities)

 

 

 

a) Batteries

9274.211

9801.452

9274.211

b) Electronics

1189.322

1232.537

1189.322

c) Unallocated

(4464.296)

(5090.550)

(4464.296)

Total

5999.237

5943.439

5999.237

 

 

CONTINGENT LIABILITIES:

 

(Rs. in million)

PARTICULARS

31.03.2015

31.03.2014

Nature of Contingent Liability

 

 

a) Un-expired guarantees issued on behalf of the Company by banks for which the Company gave counter guarantees

1438.147

1550.265

b) Legal undertakings (LUTs) given to Custom’s Authorities for clearing the imports at Nil / Concessinal rate of duty pending fulfilment of export obligations, (net of the export obligations fulfilled of Rs. 964.796 Million (previous year Rs. 973.941 Million) for which the process of discharging the LUTs by the concerned authorities is at various stages).

244.863

360.972

c) Claims against the Company not acknowledged as debts towards :

 

 

Excise duty

73.376

35.784

Sales Tax

49.650

31.741

Custom duty

48.870

0.000

Service Tax

0.851

1.068

Income Tax Dispute for Assessment Year 2009-10

6.508

6.508

Income Tax Dispute for Assessment Year 2009-10

2.764

2.764

Fuel surcharge adjustment (FSA) to the extent billed and disputed

13.438

35.604

Enhancement of Land Cost by Haryana State Industrial and Infrastructure Development Corporation Limited, Manesar

16.844

10.882

Erstwhile promoters of SCIL Infracon Private Limited

18.831

18.831

Others

1.150

1.150

Total

1915.292

2055.569

 

FIXED ASSETS

 

·         Land – Freehold

·         Land – Leasehold

·         Buildings – Factory

·         Buildings – Others

·         Plant & Machinery

·         Office Equipment

·         Furniture & Fixtures

·         Vehicles

·         Technical Library

 

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 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.66.20

UK Pound

1

Rs.98.29

Euro

1

Rs.72.41

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRP

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

SUJ

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILITY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

52

 

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

 

--

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.