MIRA INFORM REPORT

 

 

Report No. :

301505

Report Date :

05.01.2015 

 

IDENTIFICATION DETAILS

 

Name :

SPENTEX INDUSTRIES LIMITED

 

 

Registered Office :

A-60, Okhla Industrial Area, Phase II, New Delhi – 110 020

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

25.11.1991

 

 

Com. Reg. No.:

55-138153

 

 

Capital Investment / Paid-up Capital :

Rs.897.720 millions

 

 

CIN No.:

[Company Identification No.]

L74899DL1991PLC138153

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer and Trader of Textiles.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (11)

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Status :

Sick Company

 

 

Payment Behaviour :

Slow and delayed

 

 

Litigation :

Clear

 

 

Comments :

The subject company is declared as a sick unit by Board for Industrial and Financial Reconstruction.

 

The management has register case (Case No.33/2013) with Board for Industrial and Financial Reconstruction under section 3 (1) (0) of sick industrial companies act 1985.

 

The order on which for approval for rehabilitation proposal is pending.

 

Business is active. Payment terms are slow and delayed.

 

The company can be considered for business dealing on a fully secured trade terms and condition.

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

CARE

Rating

Long Term Bank Facilities: D

Rating Explanation

Expected to be in default.

Date

14.02.2014

 

 

Rating Agency Name

CARE

Rating

Short Term Bank Facilities: D

Rating Explanation

Expected to be in default.

Date

14.02.2014

 

 

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 :

A-60, Okhla Industrial Area, Phase II, New Delhi – 110 020, India

Tel. No. :

91-11-26387738/ 41614999

Fax No. :

91-11-26385181

E-Mail :

secretarial@clcindia.com

info@clcindia.com

corpcomm@clcindia.com

Website :

http://spentex.net

 

 

Factory 1 :

B-1, MIDC, Chincholi – Kondi, District Solapur – 413 255, Maharashtra, India

 

 

Factory 2 :

D-48, MIDC, Baramati, District Pune – 413 133, Maharashtra, India

 

 

Factory 3 :

51-A, Industrial Area, Sector-III, Pithampur, District Dhar – 454 774, Madhya Pradesh, India

 

 

Factory 4 :

31-A, MIDC Industrial Area, Butibori, Nagpur – 441 122, Maharashtra, India

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Mr. Ajay Kumar Choudhary

Designation :

Chairman

 

 

Name :

Mr. Mukund Choudhary

Designation :

Managing Director

 

 

Name :

Mr. Kapil Choudhary

Designation :

Deputy Managing Director

 

 

Name :

Mr. Amrit Agrawal

Designation :

Director Finance

 

 

Name :

Mr. Sitaram Parthasarathy

Designation :

Director Works

 

 

Name :

Mr. Deepak Diwan

Designation :

Independent Director

 

 

Name :

Mr. Prem Malik

Designation :

Independent Director

 

 

Name :

Mr. Ram Kumar Thapliyal

Designation :

Independent Director

 

 

Name :

Mr. Shyamal Ghosh

Designation :

Independent Director

 

 

Name :

Mr. Dhananjaya Prasad Singh

Designation :

Independent Director

 

 

Name :

Mr. Rajeev Kalra

Designation :

Nominee CVCI

 

 

KEY EXECUTIVES

 

Name :

Ranjan Mangtani

Designation :

Senior Vice President Corporate and Legal Affairs and Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2014

 

Category of Shareholders

 

No. of Shares

Percentage of holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

30966502

34.49

Bodies Corporate

19364058

21.57

Sub Total

50330560

56.06

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

50330560

56.06

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

20811

0.02

Financial Institutions / Banks

121030

0.13

Foreign Institutional Investors

19255367

21.45

Any Others (Specify)

1505

0.00

Foreign Bank

1505

0.00

Sub Total

19398713

21.61

(2) Non-Institutions

 

 

Bodies Corporate

4954504

5.52

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

8388000

9.34

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

5166110

5.75

Any Others (Specify)

1534148

1.71

Directors & their Relatives & Friends

83721

0.09

Clearing Members

13953

0.02

Trusts

27895

0.03

Non Resident Indians

381756

0.43

Hindu Undivided Families

1026823

1.14

Sub Total

20042762

22.33

Total Public shareholding (B)

39441475

43.94

Total (A)+(B)

89772035

100.00

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

0

0.00

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

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

89772035

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Textiles.

 

 

Products :

·         Cotton Yarn

·         Synthetic and Blended Yarn

·         Cotton Fabric (Grey, Bleached and Dyed)

·         Synthetic and Blended Fabric (Grey, Bleached and Dyed)

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

Not Available

 

 

PRODUCTION STATUS – NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

Customers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

No. of Employees :

Not Available

 

 

Bankers :

Banker Name

State Bank of India

Branch Address

Overseas Branch, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi – 110 001, India

Person Name (With Designation)

Not Available

Contact Number

Not Available

Name of Account Holder

Not Available

Account Number

Not Available

Account Since (Date/Year of Account Opening)

Not Available

Average Balance Maintained (If Possible)

Not Available

Credit Facilities Enjoyed (If any)

Not Available

Account Operation

Not Available

Remarks (If any)

Not Available

 

·         IndusInd Bank Limited, Dr. Gopal Das Bhawan, 28, Barakhamba Road, New Delhi – 110 001, India

·         ING Vysya Bank Limited, Narian Manzil, Ground Floor, Shop No.G1 to G5, I Floor, Shop No.1001 to 1007, Barakhamba Road, New Delhi – 110 001, India

·         ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Vadodara – 390 015, Gujarat, India

·         Axis Bank Limited, 2nd Floor, Statesman House, 148, Barakhamba Road, New Delhi – 110 001, India

·         Bank of Baroda

·         Canara Bank

·         Indian Bank

·         Yes Bank Limited

·         Industrial Development Bank of India

·         Oriental Bank of Commerce

 

 

Facilities :

SECURED LOANS

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

Debentures

 

 

Redeemable Non-Convertible Debentures

262.023

307.774

Term Loans

 

 

i) Term Loans - From Banks

3087.283

3610.692

ii) Vehicle Loans from Banks

5.042

5.334

Less: Amount disclosed under the head “other current liabilities”

(939.819)

(1005.069)

SHORT TERM BORROWINGS

 

 

Loan Repayable on Demand:

 

 

Working Capital Loans From Banks

(Working Capital Loans from Banks are secured by first pari-passu charge on entire current assets, long term loan and advances and other non current assets of the Company. These loans are further secured by second pari-passu charge on entire fixed assets, both present and future and personal guarantee of the promoters. These loans, are also secured by pledge of promoters' shares (24,575,918 nos.) on pari-passu basis.)

1447.927

999.524

Total

3862.456

3918.255

 

Banking Relations :

--

 

 

Auditors :

 

Name :

J.C. Bhalla and Company

Chartered Accountants

Address :

New Delhi, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Enterprises Under Significant Influence :

·         Himalayan Crest Power Private Limited

·         CLC and Sons (Private) Limited

·         CLC Technologies Private Limited

 

 

Subsidiaries/ Step-down Subsidiaries :

·         Amit Spinning Industries Limited

·         Spentex Tashkent Toytepa LLC

·         Spentex Netherlands B.V

·         Schoeller Litvinov k.s.

·         Schoeller Textile Netherlands B.V.

·         Botekos Plus s.r.o.

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

114000000

Equity Shares

Rs.10/- each

Rs.1140.000 millions

7000000

Redeemable Preference Shares

Rs.10/- each

Rs.70.000 millions

 

Total

 

Rs.1210.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

89772035

Equity Shares

Rs.10/- each

Rs.897.720 millions

 

 

 

 

 

The company has only one class of equity share having a par value of Rs.10/- per share. Each Shareholder is eligible for one vote per share. The dividend proposed, if any by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

 

Reconciliation of number of shares outstanding at the beginning and at the end of the year

 

Particulars

As at 31st March, 2014

No. of Shares

Amount

(Rs. in millions)

Equity shares outstanding at the beginning of the year

88372035

883.720

Add: Equity shares issued during the year

1400000

14.000

Less: Equity shares bought back during the year

--

--

Equity shares outstanding at the end of the year

89772035

897.720

 

List of shareholders holding more than 5% of the aggregate share in the company

 

Name of Shareholder

As at 31st March, 2014

No. of Shares Held

% of Holding

Citigroup Venture Capital International Growth Partnership Mauritius Limited

19252650

21.45

CLC Technologies Private Limited

18300000

20.38

Mukund Choudhary

8535946

9.51

Kapil Choudhary

8474869

9.44

Ajay Kumar Choudhary

8066052

8.99

 

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

897.720

883.720

832.720

(b) Reserves & Surplus

(1538.654)

(1420.018)

(1625.842)

(c) Money received against share warrants

0.000

14.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

(640.934)

(522.298)

(793.122)

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

2414.529

2918.731

3302.182

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

1.671

1.724

1.263

(d) Long-term provisions

68.263

70.347

55.434

Total Non-current Liabilities (3)

2484.463

2990.802

3358.879

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1447.927

999.698

858.105

(b) Trade payables

1163.302

1230.070

1307.651

(c) Other current liabilities

1598.641

1578.717

1135.865

(d) Short-term provisions

4.056

2.510

11.475

Total Current Liabilities (4)

4213.926

3810.995

3313.096

 

 

 

 

TOTAL

6057.455

6279.499

5878.853

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2052.832

2195.133

2409.701

(ii) Intangible Assets

0.000

0.891

8.565

(iii) Capital work-in-progress

0.646

3.148

4.371

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

774.893

774.893

774.927

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

817.906

961.017

953.284

(e) Other Non-current assets

238.905

254.145

270.737

Total Non-Current Assets

3,885.182

4189.227

4421.585

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1043.165

859.407

473.447

(c) Trade receivables

336.403

397.932

459.358

(d) Cash and cash equivalents

42.928

60.687

42.934

(e) Short-term loans and advances

527.978

560.761

254.773

(f) Other current assets

221.799

211.485

226.756

Total Current Assets

2172.273

2090.272

1457.268

 

 

 

 

TOTAL

6057.455

6279.499

5878.853

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from operations (Net)

11428.973

11296.629

9678.382

 

 

Other Income

138.689

207.449

154.071

 

 

TOTAL                                    

11567.662

11504.078

9832.453

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

7911.257

7385.481

6355.045

 

 

Purchases of stock-in-trade

149.442

272.396

959.464

 

 

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

(261.108)

(350.641)

575.525

 

 

Employee benefit expense

775.925

701.302

631.837

 

 

Other expenses

2112.590

2233.201

1624.004

 

 

Prior period items

5.703

26.514

0.000

 

 

Exceptional items

0.000

0.000

485.866

 

 

TOTAL                                    

10693.809

10268.253

10631.741

 

 

 

 

 

 

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

873.853

1235.825

(799.288)

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

810.440

768.051

854.152

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

63.413

467.774

(1653.440)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

182.050

261.950

330.798

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(118.637)

205.824

(1984.238)

 

 

 

 

 

Less

TAX                                                                 

0.000

0.000

30.275

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

(118.637)

205.824

(2014.513)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. value of goods exported

7264.117

7601.692

6729.024

 

TOTAL EARNINGS

7264.117

7601.692

6729.024

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

68.644

71.758

192.610

 

 

Stores, Spares & Components

47.887

36.097

47.638

 

TOTAL IMPORTS

116.531

107.855

240.248

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(1.32)

2.34

(24.25)

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2014

30.09.2014

Unaudited

 

1st Quarter

2nd Quarter

Net Sales
 

2661.700

2314.800

Total Expenditure
 

2578.700

2229.000

PBIDT (Excl OI)
 

83.000

85.800

Other Income
 

31.400

23.300

Operating Profit
 

114.400

109.100

Interest
 

195.500

201.000

Exceptional Items
 

0.000

0.000

PBDT
 

(81.100)

(91.900)

Depreciation
 

41.800

23.900

Profit Before Tax
 

(122.900)

(115.900)

Tax
 

0.000

0.000

Provisions and contingencies
 

0.000

0.000

Profit After Tax
 

(122.900)

(115.900)

Extraordinary Items
 

13.700

0.000

Prior Period Expenses
 

0.000

0.000

Other Adjustments
 

0.000

0.000

Net Profit
 

(109.200)

(115.900)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

(1.04)

1.82

(20.81)

 

 

 

 

 

Operating Profit Margin

(PBDIT/ Sales)

(%)

7.65

10.94

(8.26)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(2.25)

3.74

(38.91)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.19

(0.39)

2.50

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

(6.03)

(7.50)

(5.25)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.52

0.55

0.44

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(INR in Mlns.)

(INR in Mlns.)

(INR in Mlns.)

Share Capital

832.720

883.720

897.720

Reserves & Surplus

(1625.842)

(1420.018)

(1538.654)

Money received against share warrants

0.000

14.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

(793.122)

(522.298)

(640.934)

 

 

 

 

Long Term borrowings

3302.182

2918.731

2414.529

Short Term borrowings

858.105

999.698

1447.927

Total borrowings

4160.287

3918.429

3862.456

Debt/Equity ratio

(5.245)

(7.502)

(6.026)

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(INR in Mlns)

(INR in Mlns)

(INR in Mlns)

Revenue from operations (Net)

9,678.382

11,296.629

11,428.973

 

 

16.720

1.172

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(INR in Mlns)

(INR in Mlns)

(INR in Mlns)

Revenue from operations (Net)

9,678.382

11,296.629

11,428.973

Profit

(2,014.513)

205.824

(118.637)

 

(20.81%)

1.82%

(1.04%)

 

 

 

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

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

-----

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

No

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

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

The Indian Textile Industry is the one of leading Industry in the World and is one of the oldest, largest and significant industrial sectors in India.

 

The Textile Industry is providing basic necessity and an important contributor to the GDP, employment, Industrial output and exports of India. Considering the demand in Asian Markets, the Indian textile producers are taking advantage of the current situation and have increased their exposure in these emerging markets. During the year 2013-14 the exports of textile industry has increased by 15-20% and is expected to touch around US$ 220 billion by 2020. The export opportunities are opening up for Indian Cotton/Synthetic Yarn in overseas markets and the same is bound to increase exports volume.

 

During the Fiscal 2013-14, the cost of production has considerably increased owing to the increase in power tariff, production loss, fortnight increase of fuel prices, procurement of raw material at higher price and due to shortage of working capital funds etc., leading to decrease in EBITA levels. While the management has increased its sales volume as compared to last year but the factors like, the inadequate working capital limits and adverse external environment has impacted the margins negatively.

 

Further the Government's sudden decision for removal of the exports benefits under focus market scheme (FMS) on cotton yarn, has decreased, the yarn exports by 20%, coupled with lower demand from key markets of the US and EU has adversely affected the operations of the Company and it could not achieve expected margins. However, with the gradual improvement in business dynamics viz. restoration of TUF subsidy, removal of ban on export of cotton yarn, upward revision of duty drawback rates on some of the textile products and revival of demand from the US market alongwith continued weakness of rupee against US dollar, Spentex is quite confident for improvement in its operational performance in near future.

 

FINANCIALANALYSIS AND PERFORMANCE REVIEW

 

During the Fiscal 2013-14, the company has suffered production losses due to increase in Production cost and inadequate margins. Frequent increases in power tariff and fuel prices, higher payment for procurement of raw material and sudden glut in the domestic and international market has lead to decrease in EBITA levels. Inadequate working capital limits and adverse external environment also impacted the margins negatively.

 

SEGMENT-WISE PERFORMANCE

 

Yarn Manufacturing

 

During the year, the Company on standalone basis has manufactured 68941.08 MT of yarn as compared to 55100.47 MT of yarn produced during the previous year.

 

PERFORMANCE OF SUBSIDIARIES

 

The details of turnover and overall performance of material subsidiary companies is as under:

 

Amit Spinning Industries Limited, India: During the year, due to financial constraints, the subsidiary could although manufacture 5123.08 MT of yarn under job work basis as compared to 4983.01 MT of yarn produced under job work basis in the previous year, yet it could not utilize its full capacity. However, during the current year its operations have improved and it would try utilizing its capacity to full extent. The Company has its manufacturing facilities at Kolhapur, Maharashtra with a capacity of 30,672 spindles.

 

Spentex Tashkent Toytepa LLC, Uzbekistan (STTL) and Spentex Netherlands B.V, Netherlands (SNBV): During the period of investment, Government of Uzbekistan (GOU) changed certain laws and policies breaching the investment agreement and rendered operation of STTL not only unviable, but also expropriated its investment. SNBV (a subsidiary company), which had made around 99% investment in the equity of STTL, has filed request for Arbitration against GOU for its Investment Dispute Claim through its lawyer before International Center for Settlement of Investment Dispute (ICSID). As per the schedule prescribed in the Procedural Order issued by ICSID, SNBV has filed the memorial on Jurisdictions and Merits on 30th June, 2014.

 

Schoeller Litvinov k.s., Czech Republic: During the year, the step down subsidiary could only manufacture 1525.31 MT of yarn as compared to 2530.40 MT of yarn produced during the previous year, due to adverse market conditions and financial constraints. The Company has manufacturing unit situated at Czech Republic with a capacity of 59,000 spindles.

 

MANAGEMENT PERCEPTION ON OPPORTUNITIES, RISKS, CONCERN AND OUTLOOK

 

Rebounding of economic growth in key export destinations, the Indian Textile Industry is reasonably expected to bounce back its margins from negative to stable. Indian Yarn manufactures are further likely to be benefited in the Fiscal 2014-15 due to decreased yarn exports from China and simultaneous increase in demand for its exports in overseas market and as well Asian domestic market, which will in turn improve the fortunes of textile sector. With market oriented product mix, high value added products developed by the management of Spentex, the production-Sell of yarn is likely to go up and Company is optimistic to achieve better margins in near future.

 

Devaluation of Indian Rupee has continued to offer an opportunity of short term benefit to Textile Industry to optimize its day to day sales volumes and margins, by increased exports. Continued subsidy benefits under the revised TUF scheme, focus market scheme and reinstating of export incentives, are further likely to help Spentex to improve its margins.

 

However, any change in demand pattern from key markets of the US and EU, which are still reeling under recessionary condition could impact dip in exports, besides high import duty imposed by China against textile imports, uncertainty in fuel prices, strengthening of Indian rupee and inconsistent change in government policies etc. are other factors which may impact margins in coming years.

 

Whereas, factors like formation of Stable Government, increase in demand of cotton yarn in domestic market and talk of economic reforms of new Government, have already improved market sentiments and the same is resulting in showing some recovery signs in the business environment prevailing since last year and further with the support of company bankers, the directors believe that sales volumes are reasonably expected to increase and consequently margins are also expected to be strengthened in due course.

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

SHORT TERM BORROWINGS

 

 

Loan From others

0.000

0.174

Total

0.000

0.174

 

 

INDEX OF CHARGES

 

S. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10521644

27/06/2014

30,000,000.00

INDUSIND BANK LIMITED

DR. GOPAL DAS BHAWAN, 28, BARAKHAMBA ROAD, NEW DELHI, NEW DELHI, DELHI - 110001, INDIA

C22114797

2

10509406

17/06/2014

16,100,000.00

ING VYSYA BANK LIMITED

NARIAN MANZIL, GROUND FLOOR, SHOP NO. G1 TO G5, I FLOOR, SHOP NO.1001 TO 1007, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA

C11580578

3

10490742

25/03/2014

50,900,000.00

85 A

85 A, PANCHKUIAN ROAD, NEW DELHI, DELHI - 110001, INDIA

C03933264

4

10484539

20/06/2014 *

82,300,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

C11237138

5

10479922

18/02/2014

24,300,000.00

AXIS BANK LIMITED

2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA

B97339824

6

10479925

18/02/2014

64,000,000.00

AXIS BANK LIMITED

2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA

B97341374

7

10386677

03/11/2014 *

1,501,300,000.00

STATE BANK OF INDIA

OVERSEAS BRANCH, JAWAHAR VYAPAR BHAWAN, 1, TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA

C35093863

8

10364127

11/10/2012 *

9,360,000.00

ING VYSYA BANK LIMITED

NARIAN MANZIL, GROUND FLOOR, SHOP NO. G1 TO G5, I FLOOR, SHOP NO.1001 TO 1007, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA

B63457568

9

10356856

31/03/2012

547,900,000.00

ORIENTAL BANK OF COMMERCE

85-A, RISHYAMOOK BUILDING, PANCHKUIAN ROAD, NEW
DELHI, DELHI - 110001, INDIA

B40038507

10

10155403

03/11/2014 *

3,950,700,000.00

STATE BANK OF INDIA

OVERSEAS BRANCH, JAWAHAR VYAPAR BHAWAN, 1, TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA

C35092451

11

10030955

28/12/2009 *

384,700,000.00

AXIS BANK LIMITED

CENTRAL OFFICE, MAKER TOWER, 6TH FLOOR, "F" WING, 
CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA

A77226785

12

10028043

16/07/2012 *

404,700,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B57627812

13

10018649

02/05/2006

245,000,000.00

BANK OF BARODA

11TH FLOOR, BOB BUILDING, 16 SANSAD MARG, NEW DEL 
HI, DELHI - 110001, INDIA

A01054378

14

10005807

27/03/2012 *

62,016,000.00

IDBI BANK LIMITED

LARGE CORPORATE GROUP, 1, INDIAN RED CROSS SOCIETY BUILDING, RED CROSS ROAD, NEW DELHI, DELHI - 110001, INDIA

B37779428

15

10005016

29/05/2014 *

117,900,000.00

BANK OF BARODA

BANK OF BARODA BUILDING, FIRST FLOOR, 16, SANSAD MARG, NEW DELHI, DELHI - 110001, INDIA

C07788367

16

10002427

16/07/2012 *

475,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ 
ARAT - 390015, INDIA

B57626970

17

80012516

02/09/2011 *

246,800,000.00

INDIAN BANK

47-48, PRAGATI HOUSE, NEHRU PLACE, NEW DELHI, DEL 
HI - 110019, INDIA

B20885992

18

80022992

24/12/2013 *

76,545,000.00

INDUSIND BANK LIMITED

2401,GEN THIMMAYYA ROAD CANTONMENT, PUNE, MAHARASHTRA - 411001, INDIA

B96817754

19

80004240

27/03/2012 *

69,000,000.00

CANARA BANK

JEEVAN BHARTI BUILDING, PARLIAMENT STREET BRANCH, 
DELHI, DELHI - 110001, INDIA

B37786183

20

90333589

15/04/2005 *

1,000,000.00

INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED

CUFFE PARADE, MUMBAI, MAHARASHTRA, INDIA

-

21

80004600

28/12/2009 *

105,800,000.00

ING VYSYA BANK LIMITED

NARAIN MANZIL, GROUND FLOOR, SHOP NO. G1 TO G5, I FLOOR, SHOP NO.1001 TO 1007, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA

A79409082

22

80004603

11/10/2012 *

152,620,000.00

ING VYSYA BANK LIMITED

NARIAN MANZIL, GROUND FLOOR, SHOP NO. G1 TO G5, I FLOOR,SHOP NO.1001 TO 1007, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA

B63455729

 

* Date of charge modification

 

CONTINGENT LIABILITIES:

 

(i) Contingent Liabilities not provided for in respect of:

PARTICULAR

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

Contingent Liabilities not provided for:

 

 

a) Demands from income tax authorities under appeal

37.971

37.971

b) Demands from sales tax authorities under appeal

10.244

9.275

c) Show cause notices/demands raised by excise / customs department (including applicable penalties), not acknowledged as debts

392.124

249.982

d) Show cause notices/demands raised by MP Government / MPEB department , not acknowledged as debts

125.056

125.056

e) Claims against the company not acknowledged as debts

622.781

367.713

f) Guarantees and letters of credit issued on behalf of the company, outstanding at the year end

248.804

207.159

g) Bills Discounted with banks on behalf of the company, outstanding at the year end

724.660

1033.094

h) Corporate Guarantee given to IREDA for loan to M/sHimalayan Crest Power Private Limited

186.107

216.745

i) Corporate Guarantee given to AXIS Bank Limited and UCO Bank for loan to Amit Spinning Industries Limited

319.050

348.243

j) Corporate Guarantee given to Tashkent Toytepa Textile for deferred payment of purchase consideration on behalf of Spentex Tashkent Toytepa LLC Current Year USD 43,250,000 (previous year USD 43,250,000)

2589.810

2347.610

k) Corporate Guarantee given to CVCI for investment in Spentex (Netherlands) B.V. Current Year USD 2,000,000 (previous year USD 2,000,000)

119.760

108.560

l) Corporate Guarantee given to SBI - Tokyo Branch for loan to Spentex (Netherlands) B.V Current Year USD 205,00,120 (previous year USD 20,059,842)*

1227.547

1088.848

ii) Estimated value of contracts remaining to be executed 34,86,502 13,00,000 on capital account

3.487

1.300

 

* The Company believes that the corporate guarantee given to Lehman Brothers is no longer valid as Lehman Brothers did not comply with the terms and conditions of the loan agreement based on which the guarantee was given. Accordingly, the figure for the current year and previous year do not include the portion of the guarantee relating to the loan from Lehman Brothers.

 

The amount shown in the items (a) to (e) represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately. The Company engages reputed professional advisors to protect its interest and has been advised that it has strong legal positions against such disputes. The amount shown in items (f) to (l) represent guarantees given and bills discounted in the normal course of the Company’s operations and are not expected to result in any loss to the Company on the basis of beneficiaries fulfilling their ordinary commercial obligations

 

STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2014

 

PART-I Statement of Standalone Unaudited Results for the quarter and six months ended 30.09.2014

 

 

Particulars

Quarter Ended

Half Year Ended

30.09.2014

30.06.2014

30.09.2014

(Rs in Millions)

UNAUDITED

1. a. Net Sales / Income from Operation  (Net of excise duty)

2240.787

2658.464

4899.251

b. Other Operating Income

73.990

3.270

77.260

Total Income

2314.777

2661.734

4976.511

Expenses

 

 

 

a.       Consumption of raw materials

b.       (including consumption of stores, spares and packing materials)

1689.077

1904.908

3593.985

c.       Purchases pf stock-in-trade

29.068

24.932

54.000

d.       Changes in Inventories of Finished Goods

(69.24)

24.798

(44.826)

e.       Employee Benefits Expenses

206.830

203.282

410.112

f.         Depreciation/ Amortisation Expenses

23.928

41.780

65.708

g.       Power and fuel cost

2333.278

230.833

464.111

h.       Other Expenses

140.378

189.983

330.361

Total Expenditure

2252.935

2620.516

4873.451

3. Profit / (Loss) from Operations before Other Income,

Finance Cost, Prior Period & Exceptional Items  (1-2)

61.842

41.218

103.060

4. Other Income / (Loss)

23.287

31.348

54.635

5. Profit / (Loss) before Finance Cost, Prior Period

& Exceptional Items (3+4)

85.129

72.566

157.695

6. Financial Costs

201.006

195.487

396.493

7. Profit / (Loss) after Finance cost but before Prior Period & Exceptional Items (5-6)

(115.877)

(122.921)

(238.798)

8. Prior Period Items (Net of Income)

--

--

--

9. Profit / (Loss) after Finance Cost & Prior period items but

before Exceptional Items (7-8)

(115.877)

(122.921)

(238.798)

10. Exceptional Items

--

--

--

11. Profit / (Loss) from Ordinary Activities before tax (9-10)

(115.877)

(122.921)

(238.798)

12. Tax Expenses

--

--

--

13. Net Profit / (Loss) from Ordinary Activities after tax (11-12)

(115.877)

(122.921)

(238.798)

14. Extraordinary Items (net of tax expense)

--

13.700

13.700

15. Net Profit / (Loss) for the period (13-14)

(115.877)

(109.221)

(225.098)

16. Paid up Equity Share Capital (Face Value Rs.10/- each)

897.720

897.720

897.720

17. Reserve excluding revaluation reserve as per balance sheet of previous year

--

--

 

18. Earnings Per Share (EPS) (not annualized) (Rs.)

 

 

 

a) Basic & Diluted EPS before Extraordinary items for the period and for the previous year

(1.29)

(1.37)

(2.66)

b) Basic & Diluted EPS after Extraordinary items for the period and for the previous year

(1.29)

(1.22)

(2.51)

 

 

 

 

PART II Select information for the quarter and half year ended 30.09.2014

 

 

 

A. PARTICULARS OF SHAREHOLDING

 

 

 

1. Public Shareholding

 

 

 

-          Number of Shares

39441475

39441475

39441475

-          Percentage of shareholding

43.94%

43.94%

43.94%

2. Promoters & Promoter Group Shareholding

 

 

 

a) Pledqed / Encumbered

 

 

 

-          Number of Shares

45223058

45223058

45223058

-          Percentage of Shares (as a % of the total shareholding of the Promoter & Promoter Group)

89.85%

89.85%

89.85%

-          Percentage of Shares (as a % of the total Share Capital of the Company)

50.38%

50.38%

50.38%

b) Non-Encumbered

 

 

 

-          Number of Shares

5107502

5107502

5107502

-          Percentage of Shares (as a % of the total shareholding of the Promoter & Promoter Group)

10.15%

10.15%

10.15%

-          Percentage of Shares (as a % of the total Share Capital of the Company)

5.68%

5.68%

5.68%

 

B. INVESTOR COMPLAINTS

 

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

 

REPORTING OF SEGMENT - WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

 

Particulars

 

 

Quarter Ended

Half Year Ended

30.09.2014

30.06.2014

30.09.2014

 

(Rs in Millions)

 

UNAUDITED

 

1. Segment Revenue

 

 

 

 

a) Textile - Manufacturing

2157.346

2598.215

4755.561

 

b) Textile - Trading

401.345

177.501

578.846

 

Total

2558.691

2775.716

5334.407

 

 

 

 

 

 

Less : Inter segment revenue

243.913

113.984

357.896

 

 

 

 

 

 

Total Income

2314.777

2661.734

4976.511

 

 

 

 

 

 

2. Segment Results

Profit (+) / Loss (-) before tax and interest from each Segment

 

 

 

 

a) Textile - Manufacturing

50.035

54.439

104.474

 

b) Textile - Trading

64.938

61.064

126.002

 

Total

114.973

115.503

230.476

 

 

 

 

 

 

Less:

 

 

 

 

i. Interest

201.006

195.488

396.493

 

ii. Other Unallocable Expenditure net off

59.731

60.763

120.495

 

iii. Other Unallocable Income

29.886

17.828

47.714

 

Total Profit / (Loss) Before Tax

(115.877)

(122.921)

(238.798)

 

 

 

 

 

 

3. Capital Employed

(Segment Assets – Segment Liabilities)

 

 

 

 

a) Textile - Manufacturing

2201.798

2320.332

2201.798

 

b) Textile - Trading

132.030

118.457

132.030

 

Unallocated

(3199.860)

(3188.914)

(3199.860)

 

Total

(866.032)

(750.124)

(866.033)

 

 

Notes:

 

1. The above financial results have been reviewed by the Audit Committee and were approved by the Board of Directors in their meeting held on 14th November, 2014.

 

2. The Statutory Auditors have carried out limited review of the Unaudited Standalone Financial Results of the Company for the quarter and half year ended 30th September, 2014.

 

3. In accordance with Accounting Standard 17 on Segment Reporting notified under section 211(3C) of the Companies Act, 1956, for standalone financials, the Company has identified two Business Segments viz., Textile Manufacturing and Textile Trading, accordingly segment disclosure has been done.


4. The Auditors, in their limited review report have mentioned regarding diminution in the value of company’s long term Investment of Rs.204.470 millions and recoverability of Rs.617.753 millions (Previous quarter Rs.582.850 millions) in Amit Spinning Industries Limited (ASIL), subsidiary of the Company. Due to economic slowdown, ASIL had registered losses during the Qtr. as well as earlier financial years and eroded its net worth. The Company believes that the diminution in value of said Investment is temporary in nature and considering improvement in the global textile market, ASIL will be able to make good its losses in a foreseeable period of time which will also place this subsidiary in a position to repay the liabilities in due course and hence no adjustment is required in the books of accounts.


5. As on March 31, 2012, the accumulated losses of the Company in standalone had exceeded its net worth. Accordingly company in compliance with the provisions of section 15 (1) of Sick Industrial Companies (Special Provisions) Act, 1985 filed a reference with Board for Industrial and Financial Restructuring (BIFR). The Company’s operations were adversely affected in 2011-12 due to adverse Govt. policies and high volatility of Raw Material prices. Further, considering the change in scenario, recent performance and trends of the company as well as overall industry outlook, the management believes that losses incurred in the past would reasonably be made good, in due course. The financial statements, as such have been prepared on a going concern basis on the strength of management’s plan of revival including reorganization of business.


6. The Company has an investment of Rs.561.011 millions and Rs.9.324 millions in its subsidiary Spentex Netherlands B. V. (SNBV) and its step down subsidiary Spentex Tashkent Toytepa LLC (STTL) respectively. Further it has Rs.70.012 millions as export receivable from STTL and advances recoverable of Rs.95.071 millions in SNBV as on September 30, 2014. During the period of investment, Government of Uzbekistan (GOU) changed certain laws and policies breaching the investment agreement and rendered operation of STTL not only unviable, but also expropriated its investment. SNBV, which had made around 99% investment in the equity of STTL, had filed request for Arbitration against GOU for Claim through its lawyer before International Center for Settlement Investment Dispute (ICSID). As per the schedule prescribed in the procedural order issued by ICSID, SNBV has filed the memorial on Jurisdictions and Merits on 30th June, 2014. Based on the claim lodged with ICSID, Board of Directors have decided not to make any provision for the aforesaid amounts. In addition to above claim, the company has sent notice to the GOU 14 for indemnify the further losses caused to company directly or indirectly on account of investment made in Uzbekistan.


7. During the quarter, the company has revised the Depreciation rates based on the useful lives of its various fixed assets as per Part-C of Schedule-II to the Companies Act-2013. As a result, depreciation for the quarter and half year ended 30th September, 2014 is lower by Rs.17.675 millions.


8. Extraordinary items represents write back of Rs.13.700 millions due to loan waiver from lender.


9. Trade receivables, advance balances and export incentive receivables amount aggregating to Rs.6.371 millions, Rs.27.316 millions, Rs.17.869 millions respectively due from certain parties where payments are not forthcoming. Against the above, the Company has filed a suit for recovery. In addition to above for Rs.12.830 millions dues from Government Authorities, company had filed an application for release with concerned authorities. The Company is making effort to recover the same and expects to reduce the outstanding dues significantly. Based on outcome of the legal suit coupled with further negotiations with these parties, the management is of the opinion that ultimately there would be no losses against these old balances and hence no provision is considered necessary at the stage.


10. Previous period figures have been regrouped / recasted / rearranged wherever necessary, to conform to the current period presentation.

 

 

FIXED ASSETS:

 

Intangible Assets

·         Goodwill

·         Software

Tangible Assets

·         Land

-          Freehold Land

-          Leasehold Land

·         Building 

·         Plant and Machinery

·         Furniture and Fixtures 

·         Office Equipments

·         Vehicle

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :  No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.29

UK Pound

1

Rs.98.39

Euro

1

Rs.76.31           

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

1

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

1

-- PROFITABILITY

1~10

1

--LIQUIDITY

1~10

1

--LEVERAGE

1~10

1

--RESERVES

1~10

1

--CREDIT LINES

1~10

1

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

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

 

11

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

 

 

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