MIRA INFORM REPORT
|
Report No. : |
307089 |
|
Report Date : |
10.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
BALAJI AMINES
LIMITED |
|
|
|
|
Registered
Office : |
"Balaji Tower", No. 9/1A/1, Hotgi Road,
Asara Chowk, Solapur - 413224, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
27.10.1988 |
|
|
|
|
Com. Reg. No.: |
11-049387 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 64.802 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24132MH1988PLC049387 |
|
|
|
|
IEC No.: |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEB02668B |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Specialty Chemicals, Aliphatic Amines and
Derivatives. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. Directors are reported as experienced and respectable businessmen.
Trade relations are fair. Business is active. Payment terms are reported to
be usually correct and as per commitments. The company can be considered normal 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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Long Term Rating = A- |
|
Rating Explanation |
Having low risk of default risk. It capacity for payment of financial
commitments is considered strong |
|
Date |
13.02.2014 |
|
Rating Agency Name |
FITCH |
|
Rating |
A2+ [Short Term Bank Facilities] |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
13.02.2014 |
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.
LOCATIONS
|
Registered
Office / Hotel Division: |
"Balaji Tower", No. 9/1A/1, Hotgi Road,
Asara Chowk, Solapur - 413224, Maharashtra, India |
|
Tel. No.: |
91-217-2451500 91-217-2451522 (Sales) 91-217-2451527
(Purchase) 91-217-2451528 (Exports) |
|
Fax No.: |
91-217-2620821 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
3000 sq. ft. |
|
Location : |
Rented |
|
|
|
|
Administrative Office : |
3rd Floor, KPR House, Sardar Patel Road, Secunderabad – 500 003,
Andhra Pradesh, India |
|
Tel. No.: |
91-40-27898206/ 2071 |
|
Fax No. : |
91-40-27816171 |
|
E-Mail : |
infohyd@balajiamines.com |
|
|
|
|
Factory 1 : |
Tamalwadi Village, Tuljapur (TQ), District Osmanabad– 413 623,
Maharashtra, India |
|
Tel. No.: |
91-2471-265013 / 14 / 15 |
|
Fax No.: |
|
|
|
|
|
Factory 2 : |
Plot No. 4 and 5, Beside Apseb Sub Station 2, IDA, Bollaram – 502325,
Medak District, Andhra Pradesh, |
|
Tel. No.: |
91-8458-279240 / 329660 |
|
Fax No.: |
91-8458-279240 / 329660 |
|
Email : |
|
|
|
|
|
Factory 3 : |
Plot No. E-7 and 8 MIDC, Chincholi, Solapur - 413255, Maharashtra,
India |
|
Tel No.: |
91-217-2357051 |
|
Email : |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. A. Prathap Reddy |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. N Rajeshwar Reddy |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. D Ram Reddy |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. G Hemanth Reddy |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. A. Srinivas Reddy |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Kashinath R. Dhole |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. T Naveena Chandra |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. M Amarender Reddy |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. SV Pattabhiraman |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. CSN Murthy |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Arati S Dudhawale |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee |
|
|
Name : |
Mr. T Naveena Chandra |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. M Amarender Reddy |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. CSN Murthy |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. S.V. Pattabhi Raman |
|
Designation : |
Membe |
|
|
|
|
Research And Development
Committee: |
|
|
|
|
|
Name : |
Mr. Prathap Reddy |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. N Rajeshwar Reddy |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. G Srinivas Reddy |
|
Designation : |
Member |
|
|
|
|
Stake Holder’s Relationship
Committee : |
|
|
|
|
|
Name : |
Mr. M Amarender Reddy |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. A. Prathap Reddy |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. G. Hemanth Reddy |
|
Designation : |
Member |
|
|
|
|
Nomination and Remuneration
Committee : |
|
|
|
|
|
Name : |
Mr. S. V. Pattabhiraman |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. T. Naveena Chandra |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. M. Amarender Reddy |
|
Designation : |
Member |
|
|
|
|
Corporate Social
Responsibility Committee : |
|
|
|
|
|
Name : |
Mr. Kashinath R. Dhole |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. N. Rajeshwar Reddy |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. D. Ram Reddy |
|
Designation : |
Member |
MAJOR SHAREHOLDERS
As on 31.12.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
12849362 |
39.66 |
|
|
4756720 |
14.68 |
|
|
17606082 |
54.34 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
17606082 |
54.34 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
10351 |
0.03 |
|
|
10351 |
0.03 |
|
|
|
|
|
|
1864837 |
5.76 |
|
|
|
|
|
|
6066865 |
18.72 |
|
|
6632946 |
20.47 |
|
|
219919 |
0.68 |
|
|
59663 |
0.18 |
|
|
148754 |
0.46 |
|
|
11502 |
0.04 |
|
|
14784567 |
45.63 |
|
Total Public
shareholding (B) |
14794918 |
45.66 |
|
Total (A)+(B) |
32401000 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
32401000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Specialty Chemicals, Aliphatic Amines and
Derivatives. |
|
|
|
|
Products : |
Not Available |
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
Not Available |
|
|
|
|
Imports : |
Not Available |
|
|
|
|
Terms : |
Not Available |
PRODUCTION STATUS = NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Customers : |
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
Information declined by the management |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
Auditors : |
|
|
Name : |
V. Sridhar and Company Chartered Accountants |
|
Address : |
No.
12-2-823/A/78, Geeta Apartments, Santoshnagar Colony, Mehdipatnam, Hyderabad –
500 028, Andhra Pradesh, India |
|
|
|
|
Cost Accountant : |
|
|
Name : |
N.V.S. Kapardhi |
|
Address : |
1-9-1113/17/B, Dayanand Nagar, Vidhyanagar, Hyderabad – 500 044, Andhra Pradesh, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Aherkar and Company |
|
Address : |
Battin Complex, 35, Ganesh Peth, Solapur-413 005, India |
|
|
|
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiary : |
Bhagyanagar Chemicals Limited |
|
|
|
|
Other Related
Party |
Balaji Greentech Products Limited |
CAPITAL STRUCTURE
As on: 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
45000000 |
Equity Shares |
Rs.2/- each |
Rs.90.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32401000 |
Equity Shares |
Rs.2/- each |
Rs.64.802
Millions |
|
|
|
|
|
RESTRICTION ON
DISBURSEMENT OF DIVIDEND:
As part of the general
terms and conditions in respect of borrowings from Banks, prior permission
should be taken from the lending Banks before distribution of dividend.
Similarly, the term lenders have imposed a condition that, no dividend shall be
declared in the event of default in the scheduled repayment of installment.
SHAREHOLDER
HOLDING MORE THAN 5% SHARE:
|
NAME OF
SHAREHOLDERS |
NO. OF SHARES |
% OF HOLDING |
|
Ande Prathap Reddy |
4907048 |
15.14 |
|
APR Holdings Investment Private Limited |
4756720 |
14.68 |
|
A. Shakunthala Devi |
1944450 |
6.00 |
|
Ande Prathap Reddy |
1650811 |
5.09 |
During the five
years immediately preceding the financial year 2013-14, the company has not
issued any shares without payment being received in cash, nor issued any bonus shares
and the company did not buy back any shares.
The Company has
only one class of Shares i.e. Equity Shares.
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 |
64.802 |
64.802 |
64.802 |
|
(b) Reserves & Surplus |
1957.602 |
1660.033 |
1397.153 |
|
(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) |
2022.404 |
1724.835 |
1461.955 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
859.548 |
1037.246 |
861.475 |
|
(b) Deferred tax liabilities (Net) |
424.351 |
398.212 |
366.088 |
|
(c) Other long term
liabilities |
50.415 |
58.546 |
36.881 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
1334.314 |
1494.004 |
1264.444 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
1394.600 |
1055.805 |
1110.523 |
|
(b) Trade payables |
869.714 |
355.068 |
347.111 |
|
(c) Other current
liabilities |
415.167 |
363.378 |
257.821 |
|
(d) Short-term
provisions |
177.322 |
211.424 |
225.570 |
|
Total Current
Liabilities (4) |
2856.803 |
1985.675 |
1941.025 |
|
|
|
|
|
|
TOTAL |
6213.521 |
5204.514 |
4667.424 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3250.765 |
2340.511 |
1956.349 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
81.179 |
629.227 |
246.657 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
7.128 |
7.128 |
47.128 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
7.431 |
7.536 |
7.625 |
|
(e) Other
Non-current assets |
22.759 |
20.522 |
10.460 |
|
Total Non-Current
Assets |
3369.262 |
3004.924 |
2268.219 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
199.400 |
199.400 |
38.400 |
|
(b) Inventories |
906.350 |
567.520 |
1074.045 |
|
(c) Trade receivables |
1315.261 |
1037.135 |
821.371 |
|
(d) Cash and cash
equivalents |
97.439 |
26.771 |
44.782 |
|
(e) Short-term loans
and advances |
325.809 |
368.764 |
420.607 |
|
(f) Other current
assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
2844.259 |
2199.590 |
2399.205 |
|
|
|
|
|
|
TOTAL |
6213.521 |
5204.514 |
4667.424 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6101.263 |
5117.960 |
4495.235 |
|
|
|
Other Income |
26.026 |
37.103 |
28.451 |
|
|
|
TOTAL (A) |
6127.289 |
5155.063 |
4523.686 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
4034.225 |
2871.720 |
2810.879 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(224.505) |
250.306 |
(184.377) |
|
|
|
Employees benefits expense |
158.448 |
129.006 |
118.963 |
|
|
|
Other expenses |
1222.937 |
1064.768 |
943.218 |
|
|
|
Exceptional items |
0.000 |
(1.188) |
(7.912) |
|
|
|
TOTAL (B) |
5191.105 |
4314.612 |
3680.771 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
936.184 |
840.451 |
842.915 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
315.104 |
254.012 |
212.057 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
621.080 |
586.439 |
630.858 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
164.649 |
126.879 |
103.451 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
456.431 |
459.560 |
527.407 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
121.204 |
147.725 |
170.790 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
335.227 |
311.835 |
356.617 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1420.291 |
1188.595 |
897.767 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
33.523 |
31.184 |
35.662 |
|
|
|
Dividend |
32.401 |
42.121 |
25.921 |
|
|
|
Tax on Dividend |
5.258 |
6.834 |
4.206 |
|
|
BALANCE CARRIED
TO THE B/S |
1684.336 |
1420.291 |
1188.595 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.35 |
9.62 |
11.01 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
5.47 |
6.05 |
7.88 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.48 |
8.98 |
11.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.45 |
10.06 |
12.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23 |
0.27 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.11 |
1.21 |
1.35 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.00 |
1.11 |
1.24 |
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 |
64.802 |
64.802 |
64.802 |
|
Reserves & Surplus |
1397.153 |
1660.033 |
1957.602 |
|
Net worth |
1461.955 |
1724.835 |
2022.404 |
|
|
|
|
|
|
long-term borrowings |
861.475 |
1037.246 |
859.548 |
|
Short term borrowings |
1110.523 |
1055.805 |
1394.600 |
|
Total borrowings |
1971.998 |
2093.051 |
2254.148 |
|
Debt/Equity ratio |
1.349 |
1.213 |
1.115 |
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 |
4495.235 |
5117.960 |
6101.263 |
|
|
|
13.853 |
19.213 |
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 |
4495.235 |
5117.960 |
6101.263 |
|
Profit |
356.617 |
311.835 |
335.227 |
|
|
7.93% |
6.09% |
5.49% |
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 |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
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 |
LITIGATIONS
DETAILS
|
LITIGATION DETAILS |
|||||||
|
Presentation Date :- 17/10/2014 |
|||||||
|
Bench:- Bombay |
|||||||
|
Lodging No. : |
ITXAL/1833/2014 |
Failing Date:- |
17.10.2014 |
Reg No. : |
ITXA/210/2015 |
Reg. Date : |
02.02.2015 |
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX |
Respondent:- |
BALAJI AMINES LIMITED |
||||
|
Petn.Adv:- |
TEJVEER SINGH MASTAN SINGH (I3678) |
Resp. Adv.: |
0 (0) |
||||
|
District:- |
PUNE |
||||||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Pre-Admission |
Stage:- |
|||||
|
Last Date:- |
12/02/2015 |
||||||
|
Last Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTONG LIST |
||||||
|
|
|
||||||
|
Act. : |
Income Tax Act,1961 |
Under Section 260A |
|||||
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2014 |
As on 31.03.2013 |
|
LONG TERM
BORROWINGS |
|
|
|
Ande Prathap Reddy |
15.378 |
0.000 |
|
Nomula Rajeshwar Reddy |
5.331 |
0.000 |
|
Dundarapu Ram Reddy |
5.126 |
0.000 |
|
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
|
HDFC Bank |
0.000 |
50.000 |
|
|
|
|
|
Total |
25.835 |
50.000 |
OPERATING RESULTS AND
BUSINESS
The Company achieved exceptional performance though there was general slowdown in economy and bleak outlook of domestic Chemical Companies. The company has achieved a Gross turnover of Rs. 6674.100 Millions as compared to Rs. 5563.300 Millions during the previous year. The company registered an impressive year on year growth of 19.96% in gross sales. Profit after Tax stands at Rs. 335.200 Millions in the current year as compared to Rs. 311.800 Millions for the previous year.
The performances is attributed to increase in value chain of some of the products and plant efficiencies which has impacted the consumption co-efficient of materials compared to previous year and with stringent cost control measures in almost all the areas possible by all the team members at all plants the Company was able to showcase its performance and has demonstrated this performance in these competitive market.
Present anti dumping duties on imports of Morpholine from China PR, EU and USA has resulted in reducing price pressure from such dumped imports on Morpholine produced and supplied by the Company in the Indian market. However, imports (dumped) of Morpholine from the above stated countries are still taking place at significant levels forcing the Company to keep its prices below reasonable levels to match the imported dumped price of Morpholine. Existing duties are essential to re-establish fair play in the market and counter act continued dumped imports from the above said countries. Also, PVPK-30 produced by the Company is facing unfair competition in the Indian market on account of cheap imports of the same primarily from China PR. The Company would pursue the legal options available with it under the WTO regime to prevent this unfair practice so as to observe fair play in the Indian market. Anti-dumping duties on both these products will have a significant bearing on the profitability of the Company from this segment.
MANAGEMENT DISCUSSION
AND ANALYSIS
BUSINESS REVIEW AND
FUTURE OUT LOOK:
MANUFACTURING OF
ALIPHATIC AMINES
The company is a leading manufacturer of specialty chemicals and Amines and its derivatives in India in terms of volume and value in its class.
Majority of customers are from
1. API'S
2. Agro chemicals
3. Refineries
4. Water treatment chemicals and rubber chemicals
5. Leather processing chemicals
6. Dye stuffs and paint industry
The Global slowdown has caused Indian Chemical Industry to re look at the competencies for sustainability and in this direction the company has emerged as a leader by evolving from being a local player to a global player by adopting new technologies in processes and selection of product mix, such that the company performs sustainably.
With the for some of the products, the company is able to achieve growth in exports REACH CERTIFICATION and maintain the performance.
The company takes pride in setting up world class facilities for some of the basic chemicals so that the scale of operations will improve the margins over a period of time. The future is for those who are prepared for any challenge and the company has consolidated all its strength by expanding existing capacities by adopting new process and diversification to enhance value chains of some of the products.
The emergence of a star Hotel in any of the cities results into an invitation not only for the present development and growth but also helps in the development and growth of the other related and ancillary business units in the future. And the company takes pride in establishing the only 5 Star hotel in Solapur during the year.
HOTEL INDUSTRY
OUTLOOK:
Solapur is in the radar of developmental hub. After Mumbai, Pune, Nasik, Solapur is the next destination for the development of industries.
Considering the fact of growing Solapur the Board of Directors have considered to come up with 5 star Property in Solapur.
The new industries like Thermax, some of cement manufacturing plants, NTPC and Power Grid Corporation of India will definitely boost their hotel business.
The city of Solapur is surrounded by famous pilgrim centers like Akkalkot, Tuljapur, Pandhapur, and are visited by national and international devotees. The lack of required facilities for these devotees was a major concern.
Balaji Sarovar is planning to offer packages for those pilgrim centers to attract more visitors. The Hotel has tied up with various travel and tourism agencies to attract the travelers/devotees through its attractive website and marketing tools like facebook and twitter.
PRESS RELEASE
BALAJI AMINES TO SET
UP CHEMICAL PLANT IN MAHARASHTRA
Balaji Amines is setting up a chemical plant to produce dimethylformamide (DMF) and di-methyl amine hydrochloride (DMA HCL) at an investment of Rs 30 crore in Maharashtra.
The first phase of the DMF plant with a capacity of 7,500 tonnes is set to come on stream by September this year, while the second phase would double the output by December this year.
The project assumes significance due to short supply of these amines in global market. Used as raw materials for manufacturing anti-diabetic and antibiotic, these amines always remain in supply deficit due to rapid expansion in production capacity of pharmaceutical companies.
Balaji’s products, specially chemicals, aliphatic amines and its derivatives, cater mainly to active pharmaceutical ingredients (APIs), agrochemicals, rubber chemicals, water treatment chemicals, refineries and other industries in the domestic and global markets.
India’s total consumption of DMF stands at 30,000 tonnes per annum of which Rashtriya Chemical and Fertiliser (RCF) produces between 3,000 – 4,000 tonnes per annum. Balaji has currently one plant up and running at an annual capacity of 22,000 tonnes. Indian pharmaceutical companies also import huge quantity of DMF to meet its requirement.
“Total import of DMF was recorded at 17,000 tonnes. Therefore, we proposed to set up a unit with an annual production capacity of 30,000 tonnes,” said D Ram Reddy, director of Balaji Amines.
The only substitute to this product is dicyandiamide (DCDA) which is largely produced in China. But, being the highest polluting industry, DCDA manufacturing unit can’t be set up anywhere and everywhere.
Accumulating the two plants, the total DMF production capacity of Balaji Amines would go up to 52,000 tonnes making it the world’s largest producer of DMF.
With the rising demand from pharma companies, the price of DMF has surged to $4-5 a kg now from $2.5- 3 a kg about a month ago. Reddy hopes the price spurt to continue in the future.
The additional capacity of all its products is set to add 25-30 per cent in the company’s annual turnover which was reported at Rs 486 crore in the financial year 2011- 12, a rise of 26 per cent from the previous year.
The company operates from three manufacturing complexes, with two facilities in Solapur (Maharashtra) and one in Hyderabad (Andhra Pradesh). Balaji has a dedicated research and development center which is continuously engaged in reduction of manufacturing costs through process improvements. The company has been instrumental in introducing new products and expanding existing facilities every year.
FY 15 TOBE A STRONG YEAR
FOR BALAJI AMINES :D RAM REDDY
D Ram Reddy, Joint Managing Director, Balaji Amines expects FY15 to be a strong year for the organisation as post new plant expansion, the company will be eligible to pay minimum alternate tax FY15 onwards.
Since methanol, their key raw material is barely linked to crude, their profit margins are anticipated to improve, he says in an interview with CNBC-TV18.
However, Reddy adds that an increase in YoY short-term debt is witnessed on account of working capital needs.
Also read: New govt, global macros to determine biz ahead: Guj Pipavav
Below is the verbatim transcript of the interview:
Q: Can you take us through your segmental performance this quarter?
A: We have done 20 percent up in the top line and 7.5 in the bottom-line. Inspite of the bad condition for the chemical industry, we have done well and we are expecting good for the next year because one of our plants for the manufacturing of Dimethyl formamide is coming up by next month that will produce 30,000 metric tonnes of Dimethyl formamide.
As on today, India imports this product almost 360000 tonnes every year so by starting this, we will be catering the entire domestic market as well as some of the neighbouring countries. With that we expect at least Rs 100-150 crore will go up for the top line for the next year.
Q: Your profitability for the quarter is up a whooping 60 percent but there is no tax that has been paid. Could you take us through that?
A: Yes this year we have commissioned a five star hotel project with Rs 110 crore that we are eligible for the 100 percent depreciation benefits that we have taken 30 percent this year. Probably next two years the tax condition will be like this because of the depreciation benefits.
Q: So then, there will be no tax paid?
A: Yes, we will be paying only minimum alternate tax under deferred tax liability. This is marginal around Rs 10-15 crore.
Q: While your long-term debt has come down to about Rs 85 crore, if I see your short-term debt levels they have spiked up actually from just about Rs 106 crore which you had last year now to about Rs 140 crore. What is the reason for this sharp rise in your short-term debt?
A: It is only because working capital is up due to increase in sales.
Q: Being a specialty chemicals company your raw materials should be linked to crude derivatives. If yes then what is the outlook on that front?
A: Our main raw
material is methanol that is little linked to crude. But that is stable, about
two months back it went high like USD 500 per tonne but now it has come to USD
320/tonne. We hope that this will continue may be this entire year. So with
this the profit margins will be little better than what we had in this entire
year.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
AND SIX MONTHS ENDED SEPTEMBER 30, 2014
(Rs.
In Millions)
|
Sr. No. |
Particular |
3 Months Ended |
Six Months Ended |
|
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
|
|
|
|
|
|
1. |
Net Sales/Income from
Operations |
1504.500 |
1644.700 |
3149.200 |
|
|
Other Operating
Income |
0.00 |
0.000 |
0.00 |
|
|
Total Income From Operations (Net) |
1504.500 |
1644.700 |
3149.200 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
804.000 |
1032.800 |
1836.800 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
49.100 |
(20.800) |
28.300 |
|
|
Employee
benefits expenses |
55.400 |
57.100 |
112.500 |
|
|
Depreciation
and amortization expenses |
49.300 |
49.000 |
98.300 |
|
|
Other
expenses |
314.300 |
326.000 |
640.300 |
|
|
Total Expenses |
1272.100 |
1444.100 |
2716.200 |
|
|
|
|
|
|
|
3. |
Profit From Operations before
Other Income, Interest and Exceptional Items (1-2) |
232.400 |
200.600 |
433.000 |
|
4. |
Other
Income |
8.500 |
7.800 |
16.300 |
|
5. |
Profit Before Interest and
Exceptional Items (3+4) |
240.900 |
208.400 |
449.300 |
|
6. |
Interest |
79.400 |
83.600 |
163.000 |
|
7. |
Profit After Interest but
before Exceptional Items (5-6) |
161.500 |
124.800 |
286.300 |
|
8. |
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
9. |
Profit from Ordinary
Activities before Tax (7+8) |
161.500 |
124.800 |
286.300 |
|
10. |
Tax
Expense |
58.100 |
31.700 |
89.800 |
|
11. |
Net Profit from Ordinary Activities
after Tax (9-10) |
103.400 |
93.100 |
196.500 |
|
12. |
Extraordinary
Item (net of expense) |
12.500 |
0.000 |
12.500 |
|
13. |
Net Profit for the period
(11-12) |
90.900 |
93.100 |
184.000 |
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.2/- Each) |
64.800 |
68.000 |
64.800 |
|
15. |
Reserves
Excluding Revaluation Reserve |
1957.600 |
1957.600 |
1957.600 |
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualized |
|
|
|
|
|
a) Basic
and diluted EPS before extraordinary items |
2.81 |
2.87 |
5.68 |
|
|
b)
Basic and diluted EPS after extraordinary items |
2.81 |
2.87 |
5.68 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
14794918 |
14794918 |
14794918 |
|
|
-
Percentage of Shareholding |
45.66 |
45.66 |
45.66 |
|
18. |
Promoters and Promoter Group
Shareholding* |
17606082 |
17606082 |
17606082 |
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
6732000 |
6732000 |
6732000 |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of promoter and promoter group) |
38.24 |
38.24 |
38.24 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
20.78 |
20.78 |
|
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
10874082 |
10874082 |
10874082 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
61.76 |
61.76 |
61.76 |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
33.56 |
33.56 |
33.56 |
|
Particulars |
3 Months ended on 30.09.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
1 |
|
Disposed of during the quarter |
1 |
|
Remaining unresolved at the end of the
quarter |
Nil |
SEGMENT WISE INFORMATION ALONG WITH THE
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
3 Months Ended |
Six Months Ended |
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
Segment Revenue |
1504.700 |
1645.100 |
3149.800 |
|
Inter Segment States |
0.200 |
0.400 |
0.600 |
|
TOTAL REVENUE |
1504.900 |
1645.5 |
3150.4 |
|
|
|
|
|
|
Segment results before depreciation,
interest and tax |
290.200 |
257.400 |
547.600 |
|
|
|
|
|
|
Depreciation |
49.300 |
49.000 |
98.300 |
|
|
|
|
|
|
Interest |
79.400 |
83.600 |
163.000 |
|
|
|
|
|
|
Segment Profit/Loss Before Tax |
161.500 |
124.80 |
286.300 |
|
|
|
|
|
|
Tax Expenses |
70.600 |
31.700 |
30.300 |
|
|
|
|
|
|
Profit/Loss After Tax |
90.900 |
93.100 |
184.000 |
|
|
|
|
|
|
Segment Assets |
60.598 |
63.936 |
60.598 |
|
|
|
|
|
|
Segment Liabilities |
3843.600 |
4270.200 |
3843.600 |
|
|
|
|
|
|
Segment Assets Acquired During the Year |
7.00 |
47.400 |
54.400 |
|
|
|
|
|
|
Capital Work in Progress |
84.300 |
82.100 |
84.300 |
STANDALONE
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
Particulars |
As at half year ended on 30.09.2014 (Unaudited) |
|
|
A |
EQUITY AND LIABILITIES |
|
|
1 |
Shareholders' Funds |
|
|
|
(a) Share Capital |
64.800 |
|
|
(b) Reserves & Surplus |
2151.400 |
|
|
Total
Shareholders’ Funds |
2216.200 |
|
|
|
|
|
2 |
Non-Current
Liabilities |
|
|
|
(a) long-term borrowings |
756.700 |
|
|
(b) Deferred tax liabilities (Net) |
472.900 |
|
|
(c) Other long term
liabilities |
29.800 |
|
|
(d) long-term provisions |
0.000 |
|
|
Sub Total Non-current Liabilities |
1259.400 |
|
|
|
|
|
3 |
Current Liabilities |
|
|
|
(a) Short term
borrowings |
1371.700 |
|
|
(b) Trade payables |
665.100 |
|
|
(c) Other current
liabilities |
366.100 |
|
|
(d) Short-term
provisions |
181.300 |
|
|
Sub
Total Current Liabilities |
2584.200 |
|
|
|
|
|
|
TOTAL- EQUITY AND
LIABILITIES |
6059.800 |
|
|
|
|
|
A |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed Assets |
3207.000 |
|
|
(b) Non-current Investments |
7.100 |
|
|
(c) Long-term Loan and Advances |
7.500 |
|
|
(d) Other
Non-current assets |
22.100 |
|
|
(e) Capital work on
progress |
84.300 |
|
|
Sub Total
Non-Current Assets |
3328.000 |
|
|
|
|
|
2 |
Current assets |
|
|
|
(a) Current investments |
294.400 |
|
|
(b) Inventories |
1074.200 |
|
|
(c) Trade receivables |
1042.600 |
|
|
(d) Cash and cash
equivalents |
69.400 |
|
|
(e) Short-term loans
and advances |
251.200 |
|
|
(f) Other current
assets |
0.000 |
|
|
Sub Total Current
Assets |
2731.800 |
|
|
|
|
|
|
TOTAL-ASSETS |
6059.800 |
Note:
- The above unaudited results have been reviewed by the audit committee and taken on record by the Board of Directors at their meeting held on 14.11.2014
- The Limited Review by the Statutory Auditors for the quarter and six months as required under clause 41 of the Listing Agreement has been completed and the related Report is being forwarded to stock exchanges. Corresponding figures in previous year have been regrouped wherever considered necessary.
- Corresponding figure in previous year have been regrouped wherever considered necessary.
- Segment wise reporting as applicable under AS-17 for the quarter and six months ended 30th September 2014, given separately.
- The Shares are pledged in favour of Banks to secure various credit facilities to the Company.
INDEX OF CHARGES:
|
S. NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10416243 |
06/03/2013 |
1,200,000.00 |
BANK OF BARODA |
SOLAPUR MAIN BRANCH, CHATTI GALLI, P.O.
BAX NO. 101, SOLAPUR - 413002, MAHARASHTRA, INDIA |
B71933626 |
|
2 |
10411959 |
19/02/2013 |
200,000,000.00 |
STATE BANK OF
INDIA |
INDUSTRIAL FINANCE BRANCH, RAJ BHAVAN
ROAD, SOMAJIGUDA, HYDERABAD- 500082, ANDHRA PRADESH, INDIA |
B70808258 |
|
3 |
10387609 |
03/11/2012 |
90,000,000.00 |
BANK OF BARODA |
BANK OF BARODA, SOLAPUR MAIN BRANCH,
CHATTI GALI, P. O BOX NO. 101, SOLAPUR- 413002 , MAHARASHTRA, INDIA |
B62396411 |
|
4 |
10319137 |
29/10/2011 |
480,000,000.00 |
STATE BANK OF
HYDERABAD |
OVERSEAS BRANCH, 6-3-652, "KAUTILYA',
SOMAJIGUDA, HYDERABAD - 500082, ANDHRA PRADESH, INDIA |
B25847500 |
|
5 |
10244616 |
24/09/2010 |
240,000,000.00 |
BANK OF BARODA |
BANK OF BARODA, SOLAPUR MAIN BRANCH,
CHATTI GALI, P.O BOX NO. 101, SOLAPUR - 413002, MAHARASHTRA, INDIA |
A96599584 |
|
6 |
10218606 |
04/06/2010 * |
59,500,000.00 |
BANK OF BARODA |
BANK OF BARODA, SOLAPUR MAIN BRANCH,
CHATTI GALI, P.O BOX NO. 101, SOLAPUR - 413002, MAHARASHTRA, INDIA |
A88487863 |
|
7 |
10209464 |
12/10/2010 * |
400,000,000.00 |
STATE BANK OF
HYDERABAD |
STATE BANK OF HYDERABAD, OVERSEAS BRANCH,
6-3-652, KAUTILYA, SOMAJIGUDA, HYDERABAD, ANDHRA PRADESH - 500082, INDIA |
A98026974 |
|
8 |
10033779 |
09/03/2010 * |
480,000,000.00 |
STATE BANK OF
HYDERABAD |
STATE BANK OF HYDERABAD, OVERSEAS BRANCH,
"KAUTILYA", SOMAJIGUDA, HYDERABAD - 500082, ANDHRA PRADESH, INDIA |
A82345489 |
|
9 |
90086643 |
02/12/2013 * |
2,980,000,000.00 |
STATE BANK OF
HYDERABAD |
OVERSEAS BRANCH, 6-3-652, "
KAUTILYA', SOMAJIGUDA, HYDERABAD - 500082, ANDHRA PRADESH, INDIA |
B92475409 |
|
10 |
90092432 |
15/11/2005 * |
430,000,000.00 |
STATE BANK OF
INDIA |
INDUSTRIAL FINANCE BRANCH; SOMEJI GUDA,
HYDERABAD, ANDHRA PRADESH, INDIA |
- |
* Date of charge modification
FIXED ASSETS:
- Land
- Building
- Wind Electric Generator
- Plant and Machinery
- Furniture and Fixtures
- Office Equipment’s
- Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
|
1 |
Rs.94.79 |
|
Euro |
1 |
Rs.70.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ART |
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 |
5 |
|
--PROFITABILITY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
51 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.