MIRA
INFORM REPORT
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Report No. : |
307341 |
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Report Date : |
09.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
BERGER PAINTS INDIA LIMITED |
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Registered
Office : |
Berger House, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
17.12.1923 |
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Com. Reg. No.: |
21-004793 |
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Capital
Investment / Paid-up Capital : |
Rs. 693.000 Millions |
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CIN No.: [Company Identification
No.] |
L51434WB1923PLC004793 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALA15344A CALB00256E |
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PAN No.: [Permanent Account No.] |
AABCB0976E |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Synthetic Resins and Paints, Varnishes, Enamels, etc. |
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No. of Employees
: |
2607
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a one of the oldest paint companies in India. It manufactures paints and varnishes, and is present in all product segments, including decorative, general industrial, automotive, protective, and powder coatings. It is a well-established and reputed company having fine track record. The rating takes into consideration Berger Paints' established position in the Indian paints industry and it is a second-largest player in the paints industry supported by strong brand name with well-spread distribution network and wide product portfolio of the company. Further rating also takes into consideration company’s healthy financial risk profile marked by adequate liquidity position and decent profitability margins of the company. Trader relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for normal business dealings at usual trade terms and conditions |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating=AA+ |
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Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
05.08.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term
rating=A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
05.08.2014 |
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
31-03-2014.
INFORMATION DECLINED BY
|
Name : |
Mr. Kaushik |
|
Designation : |
DGM in Finance |
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Contact No.: |
91-33-22299724 |
LOCATIONS
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Registered/ Head Office / Factory : |
Berger House, |
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Tel. No.: |
91-33-22299724-28/ 22296005/ 22296006/ 22296016/ 22003546–48/ 249 9754 |
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Fax No.: |
91-33-22499009/ 22499729/ 22003549 |
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E-Mail : |
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Website : |
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Plant 1 : |
14 and |
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Tel. No.: |
91-33-2668 4706 |
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Fax No.: |
91-33-2668 2956 |
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Plant 2 : |
RS No. 53-56 Pandasozhanallur, Village – Nettapakkam Commune, Pondicherry – 605 106, Tamil Nadu, India |
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Tel. No.: |
91-431-2699574 / 171 |
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Fax No.: |
91-431-2699171 |
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Plant 3 : |
316-317, Kundaim Industrial Estate, Kundaim, North |
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Tel. No.: |
91-832-2395610 / 6407 |
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Fax No.: |
91-832-2395663 / 239 5610 |
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Plant 4 : |
D-20, Site-B, Surajpur Industrial Area, Greater Noida, District Gautam Budh Nagar, Surajpur, India |
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Tel. No.: |
91-120-2561320 / 2560621 / 2561321 |
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Plant 5 : |
38A, Industrial Area, |
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Tel. No.: |
91-5735-222384 / 222249 |
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Plant 6 : |
SIDCO Industrial Growth Centre, Sambha, District Jammu, Jammu and Kashmir – 184 121 |
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Tel. No.: |
09123-246451 / 58 / 59 |
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Plant 7 : |
103, G.T. Road, Rishra, Hooghly – 712 248 |
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Tel. No.: |
91-33-26720641 / 42 |
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Branch Office: |
Plot No.9, 10, 11, Survey No.112/1, Navagama Ruda Transport, Rajkot - 360 003, Gujarat, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Kuldip Singh Dhingra |
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Designation : |
Chairman |
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Name : |
Mr. Gurbachan Singh Dhingra |
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Designation : |
Vice Chairman |
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Date of Birth : |
09.04.1950 |
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Qualification |
Bachelor of science |
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Date of Appointment : |
14.05.1993 |
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|
Name : |
Mr. Abhijit Roy |
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Designation : |
Director |
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Date of Birth : |
12.07.1965 |
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Qualification |
BE (Mechanical), Post Graduate Diploma in Management |
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Date of Appointment : |
11.02.2011 |
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|
Name : |
Mr. Srijit Dasgupta |
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Designation : |
Whole Time Director and Chief Financial Officer |
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Date of Birth : |
21.07.1961 |
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Qualification |
B.Sc |
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Date of Appointment : |
11.02.2011 |
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Name : |
Mr. Gerald Kenneth Adams |
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Designation : |
Director |
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Date of Birth : |
17.06.1953 |
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Qualification |
MBA |
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Date of Appointment : |
30.01.2008 |
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Name : |
Mr. Anil Bhalla |
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Designation : |
Director |
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Date of Birth : |
14.09.1946 |
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Qualification |
Chartered Accountants |
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Date of Appointment : |
27.09.1991 |
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|
Name : |
Mr. Subir Bose |
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Designation : |
Managing Director |
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Experience : |
B. Tech, PGDBA |
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Date of Birth : |
10.12.1949 |
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Qualification |
B. Tech, PGDBA |
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Date of Appointment : |
07.03.1994 |
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|
Name : |
Mr. Gurcharan Das |
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Designation : |
Additional Director |
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Date of Birth : |
03.10.1943 |
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Qualification |
Harvard Graduate |
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Date of Appointment : |
27.072001 |
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|
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|
Name : |
Mr. Kamal Ranjan Das |
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Designation : |
Director |
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Date of Birth : |
23.02.1932 |
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Qualification |
Graduate |
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|
Name : |
Mr. Pulak Chandan Prasad |
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Designation : |
Director |
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Date of Birth : |
27.05.1968 |
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Qualification |
B. Tech |
KEY EXECUTIVES
|
Name : |
Mr. Aniruddha Sen |
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Designation : |
Senior Vice
President and Company Secretary |
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|
Name : |
Mr. Kaushik |
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Designation : |
DGM in Finance |
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COMMITTEES : |
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Audit Committee : |
· Anil Bhalla (chairman) · Kamal Ranjan Das · G S Dhingra · Mr. Kamal Rajan Das |
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Share Transfer Committee: |
·
Mr. Abhijit Roy (Chairman) ·
Mr. Kamal Ranjan Das |
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Compensation and
Nomination and Remuneration
Committee: |
· Mr. Anil Bhalla (Chairman) · Mr. Kamal Ranjan Das · Mr. Kuldip Singh Dhingra · Mr Pulak Chandan Prasad |
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Shareholders’
Committees: |
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Share Transfer
Committee |
· Mr. Abhijit Roy (Chairman) · Mr. Kamal Ranjan Das |
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Stakeholder
Relationship and Investor Grievance
Committee: |
· Mr. Anil Bhalla (Chairman) · Mr. Kamal Ranjan Das · Mr. Gurbachan Singh Dhingra · Mr. Gerald Kenneth Adams |
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CSR Committee: |
· Mr. Kuldip Singh Dhingra (Chairman) · Mr. Abhijit Roy · Mr. Srijit Dasgupta · Mr. Anil Bhalla · Mrs. Rishma Kaur · Mr. Kanwardip Singh Dhingra · Mr. Aniruddha Sen |
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Business Process
and Risk Management
Committee: |
· Mr. Anil Bhalla (Chairman) · Mr. Gurbachan Singh Dhingra · Mr. Subir Bose · Mr. Kamal Ranjan Das · Mrs. Rishma Kaur · Mr. Kanwardip Singh Dhingra |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2014
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
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|
16522808 |
4.77 |
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|
193109295 |
55.71 |
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|
209632103 |
60.48 |
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|
50234565 |
14.49 |
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|
50234565 |
14.49 |
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Total shareholding of Promoter and Promoter Group (A) |
259866668 |
74.97 |
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(B) Public Shareholding |
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|
1482161 |
0.43 |
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|
66452 |
0.02 |
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|
5843533 |
1.69 |
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|
39717566 |
11.46 |
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|
47109712 |
13.59 |
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|
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|
8646339 |
2.49 |
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|
|
|
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|
27774694 |
8.01 |
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|
889737 |
0.26 |
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|
2354910 |
0.68 |
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|
576855 |
0.17 |
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|
309544 |
0.09 |
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|
34464 |
0.01 |
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|
1434047 |
0.41 |
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|
39665680 |
11.44 |
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Total Public shareholding (B) |
86775392 |
25.03 |
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Total (A)+(B) |
346642060 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
346642060 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Synthetic Resins and Paints Varnishes Enamels etc. |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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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
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Suppliers : |
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Customers : |
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No. of Employees : |
2607
(Approximately) |
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Bankers : |
· Standard Chartered Bank · Bank of Baroda · Central Bank of India · The Royal Bank of Scotland NV · Corporation Bank · HDFC Bank Limited · ICICI Bank Limited · State Bank of India · Axis Bank Limited · ING Vysya Bank Limited · DBS Bank Limited · The Hongkong and Shanghai Banking Corporation Limited ·
Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
Lovelock and Lewes Chartered Accountants |
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Address : |
Plot No- Y-14, Salt Lake, Block – EP, Sector – 5, Kolkata – 700 091, West Bengal, India |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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BPIL is an Associate
Company of UKPI Limited.: |
· U K Paints (India) Limited |
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|
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|
Joint Venture Company: |
·
Berger
Becker Coatings Private Limited · BNB Coatings India Limited |
|
|
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|
Wholly owned Subsidiary
company : |
·
Berger
Jenson and Nicholson (Nepal) Private Limited ·
Beepee
Coatings Private Limited ·
Berger
Paints (Cyprus) Limited ·
Berger
Paints Overseas Limited · Lusako Trading Limited |
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|
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|
Subsidiary of Beepee
Coatings Private Limited |
· BJN Paints India Limited |
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Enterprise over which
directors have significant influence : |
· Seaward Packaging Private Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
375000000 |
Equity Shares |
Rs. 2/- each |
Rs.750.000 Millions |
|
|
|
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Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
346527057 |
Equity Shares |
Rs. 2/- each |
Rs.693.100 Millions |
|
|
|
|
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Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
346481317 |
Equity Shares |
Rs. 2/- each |
Rs.693.000 Millions |
|
|
|
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|
a.
Reconciliation of the number of shares and the
amount of share capital:
|
Equity Shares |
Number
of Shares |
% Holding |
|
Balance as at 1st
April |
346289948 |
69.26 |
|
Add: Shares issued on
exercise of employee stock options * |
191369 |
0.04 |
|
Balance as at 31st March |
346481317 |
69.30 |
b.
Details of equity shares held by shareholders
holding more than 5% shares:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
U K Paints (India Limited) |
158115295 |
45.74 |
|
Jenson and Nicholson (Asia) Limited, UK |
50234565 |
14.50 |
|
Nalanda India Fund Limited |
18124788 |
5.23 |
c. Terms / rights attached to equity shares:
Share Capital comprises only equity shares of
Rs.2/- each only.
The equity shares rank pari passu in all
respects including right to dividend, issue of new shares and voting rights.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
693.000 |
692.600 |
692.300 |
|
(b) Reserves & Surplus |
10625.900 |
9151.700 |
7763.700 |
|
(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) |
11318.900 |
9844.300 |
8456.000 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
260.100 |
166.400 |
124.700 |
|
(c) Other long term
liabilities |
158.000 |
124.700 |
94.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
418.100 |
291.100 |
218.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
3028.000 |
3030.200 |
1698.500 |
|
(b) Trade payables |
4884.700 |
3465.000 |
3281.700 |
|
(c) Other current liabilities |
968.100 |
943.000 |
807.600 |
|
(d) Short-term provisions |
991.400 |
814.700 |
640.000 |
|
Total
Current Liabilities (4) |
9872.200 |
8252.900 |
6427.800 |
|
|
|
|
|
|
TOTAL |
21609.200 |
18388.300 |
15102.500 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
5348.000 |
3144.300 |
2683.000 |
|
(ii) Intangible Assets |
136.200 |
72.500 |
36.600 |
|
(iii) Capital work-in-progress |
1322.200 |
1661.300 |
658.700 |
|
(iv) Intangible assets under
development |
0.000 |
51.000 |
0.000 |
|
(b) Non-current Investments |
971.200 |
807.600 |
766.100 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
406.000 |
656.300 |
455.500 |
|
(e) Other Non-current assets |
0.000 |
0.800 |
1.100 |
|
Total
Non-Current Assets |
8183.600 |
6393.800 |
4601.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
901.700 |
98.200 |
29.600 |
|
(b) Inventories |
6187.000 |
5769.100 |
5139.600 |
|
(c) Trade receivables |
3832.100 |
3245.500 |
3051.600 |
|
(d) Cash and cash equivalents |
1630.700 |
2225.400 |
1762.900 |
|
(e) Short-term loans and
advances |
768.900 |
548.000 |
453.700 |
|
(f) Other current assets |
105.200 |
108.300 |
64.100 |
|
Total
Current Assets |
13425.600 |
11994.500 |
10501.500 |
|
|
|
|
|
|
TOTAL |
21609.200 |
18388.300 |
15102.500 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
33848.200 |
30242.100 |
26620.900 |
|
|
Other Income |
305.900 |
307.600 |
306.200 |
|
|
TOTAL
(A) |
34154.100 |
30549.700 |
26927.100 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
17729.400 |
16774.600 |
16143.700 |
|
|
Purchases of Stock-in-Trade |
3061.900 |
2357.800 |
1670.400 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(271.900) |
(414.900) |
(731.800) |
|
|
Employees benefits expense |
1587.400 |
1399.600 |
1223.200 |
|
|
Other expenses |
7845.000 |
6761.800 |
5540.600 |
|
|
TOTAL
(B) |
29951.800 |
26878.900 |
23846.100 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
4202.300 |
3670.800 |
3081.000 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
342.600 |
276.700 |
223.700 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3859.700 |
3394.100 |
2857.300 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
582.700 |
462.800 |
375.600 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
3277.000 |
2931.300 |
2481.700 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
934.500 |
833.300 |
707.800 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
2342.500 |
2098.000 |
1773.900 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5108.000 |
3949.100 |
2915.700 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
234.200 |
209.800 |
177.300 |
|
|
Dividend (Proposed) |
762.300 |
623.300 |
484.600 |
|
|
Tax on Dividend |
129.500 |
106.000 |
78.600 |
|
|
Total
|
1126.000 |
939.100 |
740.500 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
6324.500 |
5108.000 |
3949.100 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. value of Export |
30.400 |
25.900 |
25.900 |
|
|
Consultancy Fees |
1.900 |
1.700 |
16.500 |
|
|
TOTAL
EARNINGS |
32.300 |
27.600 |
42.400 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
3842.300 |
3428.500 |
3089.000 |
|
|
Components and Stores parts |
2.400 |
5.900 |
6.000 |
|
|
Capital Goods |
28.000 |
108.600 |
28.000 |
|
|
TOTAL
IMPORTS |
3872.700 |
3543.000 |
3123.000 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
|
|
|
|
|
Basic |
6.76 |
6.06 |
5.13 |
|
|
Diluted |
6.76 |
6.05 |
5.12 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin PAT/ Sales |
(%) |
6.92 |
6.94 |
6.66 |
|
|
|
|
|
|
|
PBIDT / Sales |
(%) |
12.42 |
12.14 |
11.57 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.97 |
18.47 |
18.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29 |
0.30 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.27 |
0.31 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.36 |
1.45 |
1.63 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
692.300 |
692.600 |
693.000 |
|
Reserves & Surplus |
7763.700 |
9151.700 |
10625.900 |
|
Net
worth |
8456.000 |
9844.300 |
11318.900 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
1698.500 |
3030.200 |
3028.000 |
|
Total
borrowings |
1698.500 |
3030.200 |
3028.000 |
|
Debt/Equity
ratio |
0.201 |
0.308 |
0.268 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
26620.900 |
30242.100 |
33848.200 |
|
|
|
13.603 |
11.924 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
26620.900 |
30242.100 |
33848.200 |
|
Profit |
1773.900 |
2098.000 |
2342.500 |
|
|
6.66% |
6.94% |
6.92% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
FINANCIAL PERFORMANCE
During
the financial year ended 31st March, 2014, the Company achieved net consolidated
revenue from operations of Rs.38700.000
Millions as against Rs.33460.000
Millions in the previous year registering a growth of 16%. The profit before
depreciation, interest and tax was Rs.4670.000 Millions as against Rs.4030.000 Millions in the
previous year, recording an improvement of 16%. The profit before tax was Rs.3500.000 Millions (2012 – 13 : Rs.3080.000 Millions) and the
profit after tax was Rs.2490.000
Millions (2012 – 13 : Rs.2180.000
Millions), representing increases of 14% in each case.
MANAGEMENT DISCUSSION
AND ANALYSIS
PAINT INDUSTRY STRUCTURE AND
DEVELOPMENT
The
Indian paint industry is largely divided into decorative and industrial
segments. Decorative paints enjoy a market share of 71% and industrial paints
have the balance of 29%. Decorative paints can be further classified into
higher end acrylic exterior and interior emulsions, medium range exterior and
interior emulsions and enamel paints, low end distempers, wall putty, primers
and thinners and wood coatings. They can also be broadly categorised into water
and solvent based paints. Water based paints have an edge and are growing at a
higher rate because most paintable surfaces in architectural constructions use
water based coatings. It also has the added advantage of being more
environmentally friendly.
Industrial
paints, on the other hand, comprise automotive including auto refinish, general
industrial including consumer durables, protective coatings, coil coatings and
powder coatings.
As
in the previous year, in the year 2013-14 too, paint industry volumes as a
whole continued to perform well with a growth rate, which is estimated to be
more than 2 times of GDP for decorative products. The acceleration underscores
the resilience of the industry - brought about by the continuous efforts of the
industry to open up new markets, introduce superior products, extending the
network and convincing the customers about the benefits of more frequent
painting of houses. No doubt, this also reflects growing urbanisation, desires
of an ever increasing middle class and reduction in repainting cycle. Despite
this, per capita consumption of paints in India is now about 2.6 kg compared to
the international average of 10 - 13 kg. The total size of the market is
roughly estimated at Rs.350000.000 Millions. Given the much anticipated
recovery in urban sentiments, GDP revival and the expected fillip to the
economy, this may increase to more than Rs.500000.000 Millions by 2016-17.
Industrial
paint demand continued to be lukewarm with sluggish growth in the
infrastructure industries, particularly in automobiles, high inflation, a
rather tight money market and increase in prices of raw materials. However,
with the expected increase in infrastructure spending and recovery of the
industry, the Company believes that this sector will bounce back.
COMPANY’S OPERATION
Over
the last five years (FY 09-10 to FY 13-14), the Company’s
revenues, for all its businesses, net of excise duties, grew at CAGR of 17.4%.
The decorative business, notched up much better numbers since in the last
couple of years, the industrial growth rates under performed the average. The
Company’s profitability too, improved over the years. This has been
possible through improvement in product mix, generating higher volumes with
better economies of scale through wider reach and better servicing and,
structured and well monitored measures for reduction in cost. The last one
includes strong management of working capital, improvement of productivity at
all plants, continuous development of alternate raw materials, new sources for
raw materials and improved formulations for better quality and lower costs and
innovative procuring and application. A new Vendor Management System was
implemented for the purpose of seamless co-ordination and quicker decisions.
In
keeping with the country trend, the Company’s decorative business
constitutes about 80% of its overall business. The Company’s
results for the year reflect the performance of the decorative business – both in
terms of volume and value. The Company’s Customer Relationship
Management (CRM) programme is now well entrenched all across India and the
entire business is now serviced through this automated process with minimum
manual intervention. The key benefits of CRM are improved dealer service
levels, greater transparency and visibility of market operations, better
efficiency in information systems and faster feedback for corrective measures.
The Company has set up a centralized helpline for all stakeholders in its
decorative business line.
In
addition, the Company continued to concentrate on increasing the number of
dealers not only in the existing areas but also in new geographies, educating
them and all those who are connected with the business on the use and
superiority of the Company’s products and increase of
throughput through more focussed addressing of consumer needs and demand
generation activities.
The
Company improved the formulation as well as look and feel of its three premium
advertised products viz., Silk, Easy Clean and WeatherCoat All Guard. All three
continued to perform well in the market with an impressive degree of customer
recall. Silk is a deluxe interior emulsion with a soft and rich feel. It is
positioned to compliment best in class furniture and fixtures, highlighting the
decor of a room. Easy Clean is a premium emulsion, also for interiors, which
provides the best washability and stain resistance. Weather Coat All Guard is a
silicone based long lasting, premium exterior paint that matures with age and
repels water, protecting the exterior walls from rain.
In
the previous year, the Company had launched niche products such as Weather Coat
Kool and Seal for roofs. This product is doing brisk business. This year, the
Company launched BreatheEasy Enamel. This is a unique water based eco-friendly
glossy enamel developed primarily for use on wood and metal. Normally, glossy
enamels are solvent based. Breathe Easy Enamel, though water based, provide the
same lustre in an environment friendly manner. It can also be applied on wall
surfaces. The Company added to its texture coating stable by launching
Tartaruga Hi-Build composed of a selection of coloured grits with added
silicone for water resistance. The other two textured coatings viz., Weather
Coat Texture and Tartaruga continue to perform well. The Company’s
construction chemicals business comprising Latex, Latex Plus, Crack Fill Paste,
Latex Shield 2k, Cementmix Plus, Tile Adhesive Plus, Tile Adhesive, Crack Fill Powder
and Dampshield 2k continued to grow. The functions include wall repair, water
proofing and tile adhesives for various surfaces and conditions.
The
Company’s Industrial Businesses comprise Automotive, General
Industrial, Protective Coatings and Powder Coatings Business. High inflation,
elevated interest rates, lower infrastructure spending and lower than expected
economic growth which in turn affected the fortunes of Original Equipment
Manufactures in the consumer durables space as well as infrastructure related
projects hurt the Industrial Business. The Company countered these through new
product offerings, technically superior products, increase of customer base and
shifting to new areas of application. The results of these efforts should be
fully visible in the current year’s performance. In powder
coatings, the Company entered into an agreement with TIGER Coatings GmbH and
Co. KG, Austria for distribution of their products in India.
All the
factories of the Company operated at a satisfactory level and continued to
provide the desired support to the marketing teams. In order to ensure cost
effective and quicker supplies, the Company is in the process of extending
Industrial products manufacturing capabilities to factories located at
different regions. This needs standardisation of work processes and quality
related parameters and propagation of best practices – which
are being addressed on an basis.
FOCUS AND OUTLOOK FOR
2014-15
In
the recent past, Indian economy had been growing at a rate of less than 5%. In
spite of that, as mentioned earlier in this report, the paint industry in
general and the Company in particular, continued to maintain their respective
growth trajectory, specifically in the decorative coatings segment. At the time
of writing this report, international credit rating agencies give an investment
grade rating to the country. In the coming times, the country will have to
contend with issues of inflation control and interest rates, current account
and fiscal deficits, subsidies and non plan expenditure – all the
time keeping an eye on eradication of poverty, attraction of investment and
generation of employment. The Company believes that these are problems which
are surmountable with will and tenacity. Several important policies had been
stalled in the recent past and once these are cleared, the Company believes
that the paint industry will grow at an even faster pace. In infrastructure, it
is reported that out of the projects worth Rs.22,000 billion, only one-third have been revived in the
recent past. Implementation of the balance projects will create major demand in
most sectors.
Manufacturing
sector has been one of the worst sufferers in the recent past. It is the sector
which generates maximum wealth and provides employment to those who need it the
most. It is expected that this sector will be given due attention. Improvements
are also expected in the road and the power sectors. All these will benefit the
paint industry. To this extent, the Company will continue to expand its network
through providing business opportunities to hitherto unattended counters and
areas. This will include dedicated stores and alternate business channels. The
Company’s Prolinks Business is being strengthened to be able to
better cater to major projects. The Company has just launched Express Painting – a
solution for faster painting services and this will be extended to the whole
country over a period of time through the Company’s trusted dealers. While the
Company will continue to improve the formulations of its existing products
based on market research and feedback, new products in the form of fire
retardant paints, emulsion primer and paints with better finish will be
introduced in the market. In wood coatings, the Company looks forward to
introduction of 2:1 polyurethane paint, which will provide better protection to
furniture and wooden parts of houses.
The
Company will continue to develop tailor made products for Automotive, General
Industrial and Protective Coatings segments based on the demand of its
customers. In order to achieve this, the Company has strengthened its sales
teams for all Industrial business lines. The Company’s
products have been accepted well in 2013-14 and the Company expects the same
kind of support from the customers in the near future also. These efforts are
jointly co-ordinated by Sales, Research and Development, Procurement and
Production teams.The Company’s competence in new product
development and continuous improvement of existing products has to be
complimented by capabilities in servicing and to this extent, the Company will
continue to expand its depot network and install systems and processes for
warehouse and logistics management and finished goods management.
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Short-term
borrowings |
|
|
|
Overdraft |
0.000 |
1090.900 |
|
Import finance - Buyer’s credit |
32.000 |
462.500 |
|
Total |
32.000 |
1553.400 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10159037 |
18/03/2009 |
580,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARGLETTER, LOWER P AREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
A60860749 |
|
2 |
10132650 |
16/10/2008 |
270,000,000.00 |
CORPORATION BANK |
DHARMTOLLA BRANCH,
8 LENIN SARANI, KOLKATA, WEST |
A52226917 |
|
3 |
90250293 |
30/03/2000 * |
40,000,000.00 |
PUNJAB NATIONAL BANK |
PARK STREET BRANCH, 44 PARK STREET, CALCUTTA, WES T BENGAL - 700017, INDIA |
- |
|
4 |
90250209 |
12/03/1997 |
50,000,000.00 |
INDUSTRIAL RECONSTRUCTION BANK OF INDIA |
19; NETAJI SUBHASD ROAD, CALCUTTA, WEST BENGAL - 7 00001, INDIA |
- |
|
5 |
90250132 |
23/07/1996 * |
100,000,000.00 |
SMALL INDUSTRIES DEVELOPMENT BANK OF INDA |
VIKAS DEEP, 22 STATION ROAD, LUCKNOW, UTTAR PRADE SH - 226019, INDIA |
- |
|
6 |
90251118 |
05/02/1997 * |
18,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, 1/1; CAMAC STREET, CALCUTTA, WEST BENGAL - 700016, INDIA |
- |
|
7 |
90250113 |
15/09/1995 |
20,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, 24; PARK STREET, CALCUTTA, WEST BENGAL - 700016, INDIA |
- |
|
8 |
90250029 |
22/06/1994 |
27,500,000.00 |
PUNJAB and SIND BANK |
8 OLD COURT HOUSE
STREET, CALCUTTA, WEST BENGAL - |
- |
|
9 |
90249997 |
07/01/1994 |
5,000,000.00 |
CENTRAL BANK OF INDIA |
PARK STREET BRANCH, 1; PARK STREET, CALCUTTA, WEST BENGAL - 700001, INDIA |
- |
|
10 |
90249971 |
01/07/1994 * |
20,000,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, 24; PARK STREET, CALCUTTA, WEST BENGAL - 700016, INDIA |
- |
* Date of charge modification
CONTINGENT
LIABILITIES:
Claims
against the Company not acknowledged as debts :
The Sales Tax, Excise and Service Tax, and Income Tax have made certain claims totalling Rs.290.000 Millions (31st March 2013: Rs.280.000 Millions), Rs.180.000 Millions (31st March 2013: Rs.290.000 Millions), Rs.180.000 Millions (31st March 2013: Rs.90.000 Millions) respectively in respect of earlier years. The Company has been advised by its lawyers that none of the claims are tenable and is therefore contesting the same. The future cash flows on account of the above cannot be determined unless the judgement/decisions are received from the ultimate judicial forums.
(Rs. in millions)
|
PARTICULARS |
31.03.2014 |
|
|
|
|
Corporate guarantees issued by the Company to certain banks for loans taken by some of its subsidiaries and amount outstanding as at 31st March |
2531.600 |
Some of the fixed assets of the Company have been mortgaged by deposit of title deeds in favour of Standard Chartered Bank towards loan extended to its subsidiary, M/s Lusako Trading Limited.
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH
SEPTEMBER, 2014
(Rs. In Millions)
|
Particulars |
3 Months ended (Unaudited) |
Preceding 3 Months ended (Unaudited) |
6 Months Ended (Unaudited) |
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
1.
Income from operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
9574.200 |
9378.500 |
18952.700 |
|
b) Other operating income |
34.300 |
27.100 |
61.400 |
|
Total
income from Operations(net) |
9608.500 |
9405.600 |
19014.100 |
|
2.Expenditure |
|
|
|
|
a) Cost of material consumed |
5393.900 |
4796.000 |
10189.900 |
|
b) Purchases of stock in trade |
867.100 |
781.800 |
1648.900 |
|
c) Changes in inventories of finished goods, work-in-progress
and stock-in-trade |
(634.100) |
61.00 |
(573.100) |
|
d) Employees benefit expenses |
459.200 |
472.200 |
931.400 |
|
e) Depreciation and amortization expenses |
182.000 |
181.400 |
363.400 |
|
f) Other expenditure |
2426.600 |
2176.800 |
4603.400 |
|
Total expenses |
8694.700 |
8469.200 |
17163.900 |
|
3. Profit from operations before other income and
financial costs |
913.800 |
936.400 |
1850.200 |
|
4. Other income |
71.200 |
91.000 |
162.200 |
|
5. Profit from ordinary activities before finance costs |
985.000 |
1027.400 |
2012.400 |
|
6. Finance costs |
96.300 |
85.800 |
182.100 |
|
7. Net profit/(loss) from ordinary activities
after finance costs but before exceptional items |
887.700 |
941.600 |
1830.300 |
|
8. Exceptional item |
0.000 |
0.000 |
0.000 |
|
9. Profit from ordinary activities before tax
Expense: |
887.700 |
941.600 |
1830.300 |
|
10.Tax expenses |
294.500 |
316.100 |
610.600 |
|
11.Net Profit
/ (Loss) from ordinary activities after tax (9-10) |
594.200 |
625.500 |
1219.700 |
|
12.Extraordinary Items (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
13.Net Profit / (Loss) for the period (11 -12) |
594.200 |
625.500 |
1219.700 |
|
14.Paid-up
equity share capital (Nominal value Rs.2/- per share) |
693.300 |
693.300 |
693.300 |
|
15. Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
16.i) Earnings per share (before extraordinary items)
of Rs.2/- each) (not annualised): |
|
|
|
|
(a) Basic and diluted |
1.71 |
1.81 |
3.52 |
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
86774558 |
86767023 |
86774558 |
|
- Percentage of shareholding |
25.03 |
25.04 |
25.03 |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
Nil |
Nil |
Nil |
|
Percentage of shares (as a % of total shareholding of the promoter
and promoter group) |
-- |
-- |
-- |
|
Percentage of shares (as a % of total share capital of the
company) |
-- |
-- |
-- |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
259866668 |
259725130 |
259866668 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
Percentage of shares (as a % of total share capital of the
company) |
74.97 |
74.96 |
74.97 |
|
B.
Investor Complaints |
Three Months Ended 30.09.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Receiving during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unreserved at the end of the quarter |
Nil |
UNAUDITED STATEMENT OF ASSETS AND LIABILITIES AS AT 30.09.2014
|
SOURCES
OF FUNDS |
30.09.2014 |
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
693.300 |
|
(b) Reserves & Surplus |
11854.400 |
|
(c) Money received against
share warrants |
0.000 |
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
12547.700 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
285.900 |
|
(c) Other long term
liabilities |
166.700 |
|
(d) long-term provisions |
0.000 |
|
Total
Non-current Liabilities (3) |
452.600 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
3771.700 |
|
(b) Trade payables |
5308.700 |
|
(c) Other current liabilities |
1148.400 |
|
(d) Short-term provisions |
141.200 |
|
Total
Current Liabilities (4) |
10370.000 |
|
|
|
|
TOTAL |
23370.300 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
7037.000 |
|
(b) Non-current Investments |
966.200 |
|
(c) Deferred tax assets (net) |
0.000 |
|
(d) Long-term Loan and Advances |
299.500 |
|
(e) Other Non-current assets |
0.000 |
|
Total
Non-Current Assets |
8302.700 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
349.200 |
|
(b) Inventories |
6916.000 |
|
(c) Trade receivables |
4741.400 |
|
(d) Cash and cash equivalents |
2149.200 |
|
(e) Short-term loans and
advances |
775.700 |
|
(f) Other current assets |
136.100 |
|
Total
Current Assets |
15067.600 |
|
|
|
|
TOTAL |
23370.300 |
NOTE:
The Company has only one business segment - Paints.
During the quarter ended 30 September 2014, the Company has allotted equity shares
149,073 of Rs. 2/- each fully paid up to its eligible employees on their
exercise of the options granted to them earlier, pursuant to Employees Stock
Option Plan (ESOP).
The Company's Hindupur plant which had started trial production during quarter
ended September 2013 commenced commercial production during the quarter ended
September 2014.
The above results, as reviewed by the Audit Committee, were approved and taken
on record by the Board of Directors at its meeting held on 4th November, 2014.
These results have been subjected to a 'Limited Review' by the statutory
auditors of the Company.
Figures for the previous periods have been regrouped, wherever necessary.
FIXED ASSETS
Tangible Assets
·
Land
·
Buildings
·
Plant
and Machinery
·
Furniture
and Fittings
·
Computer
and Office Equipment
· Motor Cars and Other Vehicles
Intangible Asset
· Computer Software
CMT REPORT (Corruption, Money Laundering and 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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.74 |
|
|
1 |
Rs.94.65 |
|
Euro |
1 |
Rs.70.79 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
74 |
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 and 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.