MIRA INFORM REPORT
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Report No. : |
325762 |
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Report Date : |
05.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
DCM SHRIRAM LIMITED SHRIRAM ALKALI AND CHEMICALS (DIVISION OF “DCM SHRIRAM LIMITED”) |
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Formerly Known
As : |
DCM SHRIRAM CONSOLIDATED LIMITED FINPRO SOLUTIONS PRIVATE LIMITED |
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Registered
Office : |
5th Floor, Kanchenjunga Building, 18, Barakhamba Road, New Delhi
– 110001 |
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Tel No.: |
91-11-23316801 |
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Country : |
India |
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
06.02.1989 |
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Com. Reg. No.: |
55-034923 |
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Capital
Investment / Paid-up Capital : |
Rs. 326.400 Million |
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CIN No.: [Company Identification
No.] |
L74899DL1989PLC034923 |
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IEC No.: |
Not Divulged |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELD04602D DELD08433F |
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PAN No.: [Permanent Account No.] |
AAACD0097R |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
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Line of Business
: |
Manufacturer of
Fertilisers, Urea, Ammonia, Cement, Caustic Soda, Chlorine, HCI, PAC, SBP,
Hydrochloric Acid, Calcium Carbide, PVC Resin, Textile Products, Sugar and
Energy Management Services. |
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No. of Employees
: |
Information denied by the management |
RATING & COMMENTS
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MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable factors will not cause fatal effect. Satisfactory capability for payment
of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and a reputed company incorporated in
1989. It is having fine track record. It is a diversified company with interest in agri-value chain and the
chloro-vinyl chain. It is also engaged in other businesses such as Fenesta
Building System, Cement and PVC compounding. It earned Total revenue of Rs. 55001.600 million in FY 2015 (FY 2014
Rs. 60816.500 million). The company reported net profit of Rs. 2419.300
million in FY 2015 against net profit of Rs. 2746.600 million in FY 2014. Overall financial position of the company seems to be decent. Company has current market value of Rs. 110.50/- which was initially
issued at face value of Rs. 2/- Trade relations are fair. Business is active. Payment terms are
regular and as per commitments. In view of long standing experience of the management, the subject 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund-based long term limits A+ |
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Rating Explanation |
Have adequate degree of safety and low credit risk. |
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Date |
March 2015 |
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Rating Agency Name |
ICRA |
|
Rating |
Short term loans A1+ |
|
Rating Explanation |
Have very strong degree of safety and carry lowest credit risk. |
|
Date |
March 2015 |
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
31-03-2013.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Himanshu |
|
Designation : |
Finance Department |
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Contact No.: |
91-11-23316801 |
|
Date : |
03.06.2015 |
LOCATIONS
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Registered Office : |
5th Floor, |
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Tel. No.: |
91-11-23316801 |
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Fax No.: |
91-11-23318072 |
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E-Mail : |
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Website : |
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Corporate Office |
1st Floor, Kanchenjunga Building, 18 Barakhamba Road, New Delhi – 110001, India |
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Tel. No.: |
91-11- 23316801 |
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Fax No.: |
91 -11 -23318072 |
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Factory 1 : |
Shriram Fertilisers and Chemicals Shriram Nagar, |
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Factory 2 : |
Shriram Alkali
and Chemicals 749, G.I.D.C. Industrial Estate, District Bharuch, |
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Factory 3 : |
DSCL Sugar Village Ajbapur, P.O. Mullapur, Lakhimpur Kheri – 261 505, |
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Factory 4 : |
DSCL Sugar Village Rupapur, P.O. Munder, District Hardoi – 241 123, |
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Factory 5 : |
DSCL Sugar Village and P.O. Hariawan, District Hardoi – 241 405, |
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Factory 6 : |
DSCL Sugar Village Loni, P.O. Anjhi Shahbad, District Hardoi – 241 124, |
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Sales Office : |
Located At : ·
New Delhi ·
Mumbai ·
Kolkata ·
Chennai ·
Indore ·
Hyderabad ·
Jaipur ·
Ludhiana ·
Kota ·
Meerut ·
Sriganganagar
|
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Market Office : |
·
Kirti Mahal, 19, Rajendra Place, New Delhi - 110
008 Tel. No. 91-11-25713442/25722296 Fax. No. 91-11-25768135 ·
Shivaji Marg, New Delhi - 110 015 Tel. No. 91-11-25104410/25747836 Fax. No. 91-11-25455362/25739816 ·
5th Floor, Kanchenjunga Building, 18, Barakhamba
Road, New Delhi - 110 001 Tel. No. 91-11-23316801-9 Fax. No. 91-11-23318072 |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. Ajay Shridhar Shriram
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Designation : |
Chairman and Senior Managing Director |
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Address: |
‘SHIVAM’, A 37, Vasant Marg, Vasant Vihar, |
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Date of Birth/Age: |
04.03.1954 |
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Date of Appointment: |
24.07.1989 |
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DIN No.: |
00027137 |
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Name : |
Mr. Vikram Shridhar Shriram |
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Designation : |
Vice Chairman and Managing Director |
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Address: |
5/16, Shanti Niketan, |
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Date of Birth/Age: |
06.12.1958 |
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Date of Appointment: |
22.05.1990 |
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DIN No.: |
00027187 |
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Name : |
Mr. K. K. Kaul |
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Designation : |
Whole Time Director |
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Name : |
Mr. Ajit Shridhar Shriram |
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Designation : |
Deputy Managing Director |
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Address: |
5/20, Shanti Niketan, |
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Date of Birth/Age: |
03.10.1967 |
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Date of Appointment: |
02.05.2001 |
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DIN No.: |
00027918 |
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Name : |
Dr. Narendra Jeet Singh |
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Designation : |
Whole Time Director (EHS) |
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Address: |
A-22, Mahaveer Nagar-II, |
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Date of Birth/Age: |
29.11.1953 |
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Qualification : |
M.Sc., Ph.D. |
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Expertise in
Functional Area : |
Environment, Health, Safety, Quality Systems, Sustainability, Food
Safety and Energy Management |
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Date of Appointment: |
20.11.2007 |
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DIN No.: |
01893202 |
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Name : |
Dr. Satguru Sharan Baijal |
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Designation : |
Director |
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Address: |
B 4 Sector 30, Gautam Budh Nagar, Noida – 210 303 Uttar Pradesh, |
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Date of Birth/Age: |
06.09.1929 |
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Date of Appointment: |
22.05.1990 |
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DIN No.: |
00027961 |
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Name : |
Mr. Arun Bharat Ram |
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Designation : |
Director |
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Address: |
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Date of Birth/Age: |
15.11.1940 |
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Date of Appointment: |
22.05.1990 |
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DIN No.: |
00694766 |
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Name : |
Mr. Pradeep Dinodia |
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Designation : |
Director |
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Address: |
A-9-A, Maharani Bagh, |
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Date of Birth/Age: |
15.11.1940 |
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Date of Appointment: |
22.05.1990 |
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DIN No.: |
00027995 |
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Name : |
Mr. Vimal Bhandari |
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Designation : |
Director |
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Address: |
Flat N0.164, 16th Floor, |
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Date of Birth/Age: |
23.08.1958 |
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Qualification : |
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Expertise in
Functional Area : |
Finance, Human Resources and General Management |
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Date of Appointment: |
13.05.2003 |
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DIN No.: |
00001318 |
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Name : |
Mr. Sunil Kant Munjal |
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Designation : |
Director |
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Address: |
l-A, Friends, Colony (West), |
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Date of Birth/Age: |
14.12.1957 |
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Qualification : |
B.Com, Training in Mechanical Engineering |
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Expertise in
Functional Area : |
Corporate Planning, Finance, Manufacturing, Customer Relationship, Information
Technology and Insurance |
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Date of Appointment: |
13.05.2003 |
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DIN No.: |
00003902 |
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Name : |
Mr. Debdatta Sengupta |
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Designation : |
Director |
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Address: |
Sector-B, Pocket, 8, Flat N0.6145, Vasant Kunj, |
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Date of Birth/Age: |
20.06.1942 |
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Bachelor of Science in Physics, PGDM. |
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Market Development, Risk Analysis and Transfer Techniques, Managing
Human Resources, Insurance and Reinsurance Principles and Practices, Funds Management
and International Business Relations. |
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Date of Appointment: |
11.08.2003 |
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DIN No.: |
00043289 |
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|
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Name : |
Mr. Sharad Shrivastava |
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Designation : |
LIC Nominee |
KEY EXECUTIVES
|
Name : |
Mr. B.L. Sachdeva |
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Designation : |
Company Secretary |
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Audit Committee : |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2015
|
Category of
Shareholder |
Total No. of Shares |
% of Total No. of
Shares |
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(A) Shareholding of Promoter and Promoter Group |
||
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|
5461050 |
3.36 |
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|
98282744 |
60.51 |
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|
103743794 |
63.88 |
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Total shareholding of Promoter and Promoter Group (A) |
103743794 |
63.88 |
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(B) Public Shareholding |
||
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|
|
|
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|
161887 |
0.10 |
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|
52219 |
0.03 |
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|
29640 |
0.02 |
|
|
16930443 |
10.42 |
|
|
2899742 |
1.79 |
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|
20073931 |
12.36 |
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|
|
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|
3785698 |
2.33 |
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|
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|
13851409 |
8.53 |
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|
1457701 |
0.90 |
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|
19503604 |
12.01 |
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|
241374 |
0.15 |
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|
15105550 |
9.30 |
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|
87001 |
0.05 |
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|
431130 |
0.27 |
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|
3638549 |
2.24 |
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|
38598412 |
23.77 |
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Total Public shareholding (B) |
58672343 |
36.12 |
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Total (A)+(B) |
162416137 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
162416137 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Fertilisers, Urea, Ammonia, Cement, Caustic Soda, Chlorine, HCI, PAC, SBP, Hydrochloric
Acid, Calcium Carbide, PVC Resin, Textile Products, Sugar and Energy
Management Services. |
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Products : |
Not Available |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information denied by the management |
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Bankers : |
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Facilities : |
(Rs. In Million)
NOTE (2014): SECURED Long term
borrowings from banks:
Long term
borrowings from others:
SHORT TERM
BORROWING: SHORT TERM WORKING
CAPITAL BORROWINGS FROM BANKS: Loans from banks on cash credit account of Rs. 988.000 Million (2012-13 - Rs. 1794.500 Million) are secured by first pari passu charge on whole of the current assets, both present and future, of the Company (except Shriram Bioseed Genetics, Hyderabad and Bioseed Research India , Hyderabad). These loans are further secured by a third charge by way of mortgage/hypothecation of all the immovable/ movable properties (other than current assets) of the Company’s undertakings located at Kota in Rajasthan and Ajbapur, Rupapur, Loni and Hariawan in Uttar Pradesh. Amount of Rs. Nil (2012-13 - Rs. 16.300 Million) is secured by exclusive charge by way of hypothecation on current assets and mortgage/hypothecation on the immovable and movable properties, both present and future of the Company’s undertakings at Shriram Bioseed Genetics, Hyderabad. Short Term Loan of Rs.2270.900 Million (2012-13 - Rs. 3090.200 Million) are secured by first pari passu charge on whole of the current assets, both present and future, of the Company (except Shriram Bioseed Genetics, Hyderabad and Bioseed Research India, Hyderabad), and a third charge by way of mortgage/hypothecation of all the immovable/movable properties (other than current assets) of the Company’s undertakings at Kota in Rajasthan and Ajbapur, Rupapur, Loni and Hariawan in Uttar Pradesh. |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Address : |
7th Floor, Tower B,
Building 10, DLF Cyber City Complex, DLF City Phase II, Gurgaon, Haryana, India |
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Tel. No.: |
91-124-6792000 |
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Fax No.: |
91-124-6792012 |
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Cost Auditors : |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiaries (2014) : |
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CAPITAL STRUCTURE
After 12.08.2014
Authorized Capital: Rs. 1240.000 Million
Issued, Subscribed & Paid-up Capital: Rs. 324.832
Million
As on 31.03.2015
Authorized Capital: Not Available
Issued, Subscribed & Paid-up Capital: Rs. 326.400
Million
As on 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29,49,50,000 |
Equity Shares |
Rs.2/- each |
Rs.589.900 Million |
|
65,01,000 |
Cumulative redeemable preference shares |
Rs.100 each |
Rs. 650.100 Million |
|
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|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16,98,03,320 |
Equity Shares |
Rs.2/- each |
Rs.
339.600 Million |
Subscribed and fully paid up
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
163067849 |
Equity Shares |
Rs.2/- each |
Rs. 326.400 Million |
|
Less:138,562 |
Equity shares |
Rs.2/- each |
Rs.0.300 Million\ |
|
Add: |
Forfeited shares |
|
Rs. 1.600 Million |
|
|
Total |
|
Rs.
327.700 Million |
NOTE (2014):
Reconciliation of Number
of shares and amount outstanding at the beginning and at the end of the
reporting period:
|
Subscribed and fully paid up Equity Shares: |
No. of shares |
Value (Rs. Million) |
|
As at April 1, 2012 |
165,903,320 |
Rs. 331.800 Million |
|
As at March 31, 2013 |
165,903,320 |
Rs. 331.800 Million |
|
Less: Equity shares buy back |
2,696,909 |
Rs. 5.400 Million |
|
As at March 31, 2014 |
163,206,411 |
Rs. 326.400 Million |
The Company has bought back 28, 35,471 equity shares of Rs 2/- each, out of which 26,96,909 equity shares have been extinguished up to March 31, 2014 and the balance 138,562 equity shares have been extinguished subsequent to March 31, 2014
|
Particular |
No. of shares |
Percentage |
|
(i)Shares held by the
holding company: Sumant Investments Private Limited |
98,282,284 |
60.22% |
|
(ii)The
shareholders holding more than 5% equity shares are as under: |
|
|
|
Sumant Investments Private Limited |
98,282,284 |
60.22% |
|
Life Insurance Corporation of India |
12,863,749 |
7.88% |
FINANCIAL DATA
[All figures are
in Rupees Million]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
326.400 |
327.700 |
333.400 |
|
(b) Reserves & Surplus |
18244.200 |
16407.900 |
13671.200 |
|
(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) |
18570.600 |
16735.600 |
14004.600 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
1576.700 |
1724.400 |
|
(a) long-term borrowings |
3006.900 |
5875.400 |
6604.200 |
|
(b) Deferred tax liabilities (Net) |
1288.200 |
1434.200 |
1592.700 |
|
(c) Other long term
liabilities |
364.700 |
354.600 |
329.800 |
|
(d) long-term
provisions |
1466.000 |
1272.200 |
1150.700 |
|
Total Non-current
Liabilities (3) |
6125.800 |
8936.400 |
9677.400 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
3242.000 |
4097.800 |
6938.600 |
|
(b) Trade
payables |
10757.700 |
12696.500 |
10481.300 |
|
(c) Other
current liabilities |
4418.900 |
4729.300 |
4370.400 |
|
(d) Short-term
provisions |
341.100 |
485.700 |
412.400 |
|
Total Current
Liabilities (4) |
18759.700 |
22009.300 |
22202.700 |
|
|
|
|
|
|
TOTAL |
43456.100 |
47681.300 |
45884.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
13766.800 |
14103.100 |
14570.100 |
|
(ii)
Intangible Assets |
0.000 |
39.800 |
45.600 |
|
(iii)
Capital work-in-progress |
0.000 |
213.400 |
158.500 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
1.700 |
|
(b) Non-current Investments |
446.800 |
446.800 |
453.700 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3140.000 |
2477.300 |
1820.500 |
|
(e) Other
Non-current assets |
105.500 |
129.600 |
84.800 |
|
Total Non-Current
Assets |
17459.100 |
17410.000 |
17134.900 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
1936.400 |
12.700 |
|
(b)
Inventories |
10798.000 |
10975.200 |
13394.200 |
|
(c) Trade receivables |
10073.900 |
9796.300 |
9105.800 |
|
(d) Cash
and cash equivalents |
834.500 |
2865.600 |
1199.100 |
|
(e)
Short-term loans and advances |
2497.500 |
2056.900 |
2225.200 |
|
(f) Other
current assets |
1793.100 |
2640.900 |
2812.800 |
|
Total Current
Assets |
25997.000 |
30271.300 |
28749.800 |
|
|
|
|
|
|
TOTAL |
43456.100 |
47681.300 |
45884.700 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
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|
|
|
|
|
Income |
12566.500 |
60815.400 |
53999.300 |
|
|
|
Other Income |
118.100 |
514.700 |
461.200 |
|
|
|
TOTAL (A) |
12684.600 |
61330.100 |
54460.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
8590.400 |
17860.600 |
19178.700 |
|
|
|
Purchases of Stock-in-Trade |
2748.400 |
18705.400 |
14848.300 |
|
|
|
Change in
inventories of finished goods, Work-in-progress and Stock-in-Trade |
(3493.600) |
2859.400 |
-624.400 |
|
|
|
Employee benefits expense |
1060.100 |
3830.200 |
3630.100 |
|
|
|
Exceptional Items |
0.000 |
0.000 |
535.800 |
|
|
|
Power, Fuel Etc. |
1694.700 |
0.000 |
0.000 |
|
|
|
Cost of own manufactured goods capitalised |
(0.100) |
0.000 |
0.000 |
|
|
|
Other expenses |
1737.000 |
12201.100 |
11887.400 |
|
|
|
TOTAL
(B) |
12336.900 |
55456.700 |
49455.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
347.700 |
5873.400 |
5004.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
260.700 |
1458.800 |
1526.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
87.000 |
4414.600 |
3478.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
257.700 |
1341.300 |
1438.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(170.700) |
3073.300 |
2039.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
180.300 |
326.700 |
134.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(351.000) |
2746.600 |
1905.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
5393.500 |
4538.000 |
|
|
|
|
|
|
|
|
|
Add |
BALANCE BROUGHT
FORWAR CONSEQUENT TO MERGER OF
ERSTWHILE SHRIRAM BIOSEED GENETICS INDIA LIMITED |
NA |
619.300 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividends on Equity Shares (Incl. Interim dividend) |
|
327.600 |
265.400 |
|
|
|
Corporate Dividend Tax |
|
55.700 |
33.200 |
|
|
|
Storage fund for Molasses Account |
|
1.300 |
1.300 |
|
|
|
General Reserve |
|
750.000 |
750.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
7624.800 |
5393.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Direct export of goods on FOB basis/as per contracts where FOB value
not readily ascertainable |
|
42.100 |
131.400 |
|
|
|
Others |
|
30.100 |
6.500 |
|
|
TOTAL EARNINGS |
NA |
72.200 |
137.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
325.700 |
375.900 |
|
|
|
Components & Spare Parts |
|
110.400 |
125.300 |
|
|
|
Capital Goods |
|
1264.300 |
871.500 |
|
|
|
Others |
|
6104.100 |
6005.700 |
|
|
TOTAL IMPORTS |
NA |
7804.500 |
7378.400 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
- Before
Exceptional Item |
(2.16) |
16.56 |
14.55 |
|
|
|
- After
Exceptional Item |
-- |
16.56 |
11.49 |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 (Rs.
In Millions) |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
Current maturities
of long-term debt (Secured) |
|
|
|
|
From banks |
NA |
669.000 |
814.800 |
|
From others |
NA |
852.900 |
750.600 |
|
Current maturities
of long-term debt (Unsecured) |
|
|
|
|
From others |
NA |
54.800 |
159.000 |
|
Cash generated from operations |
NA |
10466.000 |
3584.300 |
|
|
|
|
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin
(PAT / Sales) |
(%) |
(2.79) |
4.52 |
3.53 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
2.77 |
9.66 |
9.27 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.40) |
6.54 |
4.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.01) |
0.18 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability /Networth) |
|
NA |
0.69 |
1.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.39 |
1.38 |
1.29 |
Total Liability = Short-term Debt + Long-term Debt + Current Maturities
of Long-term debts
FINANCIAL ANALYSIS
[All figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
333.400 |
327.700 |
326.400 |
|
Reserves & Surplus |
13671.200 |
16407.900 |
18244.200 |
|
Net worth |
14004.600 |
16735.600 |
18570.600 |
|
|
|
|
|
|
long-term borrowings |
6604.200 |
5875.400 |
3006.900 |
|
Short term borrowings |
6938.600 |
4097.800 |
3242.000 |
|
Total borrowings |
13542.800 |
9973.200 |
6248.900 |
|
Debt/Equity ratio |
0.967 |
0.596 |
0.336 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Revenue from operations |
53999.300 |
60815.400 |
12566.500 |
|
|
|
12.623 |
(79.337) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Revenue from operations |
53999.300 |
60815.400 |
12566.500 |
|
Profit |
1905.400 |
2746.600 |
(351.000) |
|
|
3.53% |
4.52% |
(2.79%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
---------------- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
No |
|
22 |
Conduct of the banking account |
No |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
No |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
------------------- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
No |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
No |
|
33 |
Market information |
No |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
UNSECURED
LOAN
(Rs. in Million)
|
Particulars |
As
on 31.03.2015 |
As
on 31.03.2014 |
|
LONG TERM
BORROWINGS |
|
|
|
Deposits |
|
|
|
Fixed |
NA |
88.800 |
|
Others |
|
155.700 |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans repayable on demand |
|
|
|
From banks |
|
805.800 |
|
From others |
|
20.000 |
|
Loan from subsidiary company |
|
13.100 |
|
Total |
NA |
1083.400 |
INDUSTRY
OVERVIEW AND OUTLOOK (2014)
India is the second largest producer and consumer of Urea in the world. Urea is the most preferred fertilizer and constitutes about 72% of entire fertilizer consumption in the country. Urea is the preferred choice of farmers in India on account of its low farm gate price (fixed by government) and high nitrogen content. The demand and consumption of Urea has been growing and the gap in demand/supply is currently being met by imports. During FY 14, total Urea production in India stood at ~ 22.7 Million MT. 7 Million MT of Urea was imported into India during the year to meet the domestic demand.
In FY 15, Government has notified a revised policy for one year with a marginal upwards revision of fixed costs at Rs. 500 per MT. This is expected to partially compensate for the increased costs and reduce the under recoveries in FY15. We hope that the Government will take steps to finalize a long-term policy which will ensure long-term viability of the existing capacity and provide confidence to the industry to take steps to enhance e capacity levels and Help in reducing the country’s dependence on imports.
Our Strategy
The company has been focused on continuously improving its operating efficiencies and reducing energy consumption along with focusing on initiatives which will help in containment of fixed expenses.
Shriram Farm Solutions
Shriram Farm Solutions business provides a complete range of farm inputs which include the Value added inputs such as Seeds (GM, Hybrid and OP), Crop Care Chemicals (Insecticide, Fungicide and Herbicide), Soluble Fertilizers, Micro-Nutrients etc. and Bulk Fertilizers like DAP, MOP and SSP. The Company not only aims to provide wide range of quality inputs, but also strives to provide customized solutions which include providing customized inputs by leveraging local knowledge and creating package of practices which will help farmers in enhancing their levels of productivity and profitability. The business is supported by a strong extension program called the SKVP (Shriram Krishi Vikas Program). This program, apart from being an Agronomy services platform providing latest technology and practices to the farmers and the Channel, also focuses on meeting its social responsibilities. Some of the activities include education programs for girl child, providing Scholarships along with vocational training for women. They believe, that new technologies/practices need to be disseminated to the farmers which will help them in increasing yields/profitability by meeting challenges of Drought, pests etc. The company lays strong emphasison strengthening its customer interface which will help in capturing the evolving trends in Agriculture and leverage technology to enhance performance of the Business, the Channel and the Farmer. The business is also supported by a strong distribution network which is present in 17 states, reaching ~ 0.4 Million farmers and ~ 30,000 retailers. The Company sells these Agri-Inputs under brand “Shriram” which is known for quality and has a strong brand image within the farming community.
Industry Overview and Outlook
The
Year 2013-14 saw a good monsoon with comprehensive coverage. In some areas,
excess and extended rainfall resulted in crop damage in khariff and late rabi.
Value added inputs saw growth indem and but the rising in put cost resulted in
pressure on margins. In the Bulk
Fertilizers (DAP/MOP), the industry started FY 14 with high inventory in the
system. International prices dropped sharply due to lower purchase by major
consuming countries. Abundant supply in domestic market resulted in higher
discount and longer credit in the domestic market. However, due to good monsoon
during the year, inventory in the country at the end of the season has
reduced. They expect that industry will
continue to grow in FY 15 if monsoons are normal, although climate factors such
as El Nino can impact performance. They do believe that this industry will
witness healthy growth in medium long term due to strong demand for food in the
next few years given the macro factors such as population growth, rising per capital
income etc. As per industry estimates, the demand for food will touch ~ 330 Mn
MT by 2020 and supply is projected to be about 280 Mn MT, resulting in shortage
of ~ 50 Mn MT. With land area under agriculture stagnant at 140 Mn h.a, the
country would need to improve the levels of productivity which would include
adoption of superior products (Agri-Inputs) along with other initiatives.
CONTINGENT
LIABILITIES
|
Particulars |
31.03.2015 (Rs. in Million) |
31.03.2014 (Rs. in Million) |
|
Claims* (excluding
claims by employees where amount not ascertainable) not acknowledged as
debts: |
|
|
|
|
|
|
|
Sales tax matters |
NA |
13.300 |
|
Excise matters |
|
21.200 |
|
Additional premium on land |
|
81.100 |
|
Others |
|
59.300 |
|
Total |
NA |
174.900 |
NOTE: (CONTINGENT
LIABILITIES)
All the above matters are subject to
legal proceedings in the ordinary course of business. In the opinion of
management the legal proceedings, when ultimately concluded, will not have a
material effect on results of operations or financial position of 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 |
10495242 |
15/01/2015 * |
968,600,000.00 |
PUNJAB NATIONAL BANK |
LARGE CORPORATE BRANCH, TOLSTOY HOUSE, TOLSTOY MARG, NEW DELHI - 110001, INDIA |
C42312736 |
|
2 |
10431900 |
10/12/2013 * |
1,160,000,000.00 |
STANDARD CHARTERED BANK |
(ACTING AS AN SECURITY AGENT) C D U, NARAIN MANZIL, 23 BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA |
B95427985 |
|
3 |
10336978 |
30/12/2011 |
8,797,000.00 |
DEPARTMENT OF BIOTECHNOLOGY |
6-8TH FLOOR, BLOCK NO.2, CGO COMPLEX, LODHI ROAD, NEW DELHI - 110003, INDIA |
B32716854 |
|
4 |
10322865 |
28/07/2014 * |
500,000,000.00 |
ING VYSYA BANK LIMITED |
23, BARAKHAMBA ROAD, NARAIN MANZIL, NEW DELHI - 110001, INDIA |
C17340183 |
|
5 |
10253888 |
09/12/2013 * |
107,500,000.00 |
GOVERNMENT OF INDIA-REPRESENTED BY IFCI |
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTIBUTION- KRISHI BHAWAN, NEW DELH- 110001, INDIA |
B95508263 |
|
6 |
10179961 |
29/09/2009 |
1,400,000,000.00 |
IDBI BANK LIMITED |
IRCS, 1, RED CROSS ROAD, NEW DELHI - 110 |
A71232516 |
|
7 |
10157481 |
15/05/2009 |
2,491,800,000.00 |
INTERNATIONAL FINANCE CORPORATION |
2121 PENNSYLVANIA AVENUE, N.W., WASHINGTON, D.C, NA, - 20433, UNITED STATES OF AMERICA |
A62340955 |
|
8 |
10158710 |
12/08/2010 * |
5,800,000.00 |
DEPARTMENT OF BIOTECHNOLOGY |
BLOCK 2,CGO COMPLEX, LODHI ROAD, NEW DELHI - 110003, INDIA |
A93576411 |
|
9 |
10144427 |
09/12/2013 * |
167,480,000.00 |
PRESIDENT OF INDIA - REPRESENTED BY IFCI LIMITED |
GOVERNMENT OF INDIA - MINISTRY OF CONSUMER AFFAIRS, FOOD
& PUBLIC DISTRIBUTION - KRISHI BHAWAN, NEW |
B95508586 |
|
10 |
10144430 |
09/12/2013 * |
174,200,000.00 |
PRESIDENT OF INDIA - REPRESENTED BY IFCI LIMITED |
GOVERNMENT OF INDIA - MINISTRY OF CONSUMER AFFAIRS, FOOD
& PUBLIC DISTRIBUTION - KRISHI BHAWAN, NEW |
B95507919 |
* Date of charge modification
FIXED ASSETS
- Land
- Building
- Leasehold
- Furniture and
Fixture
- Plant and
Equipments
- Vehicles
- Office
Equipment
- Computer
- Know How
PRESS LEASE
DCM Shriram Limited announces its Q3 FY15 financial results
Net Profit for Q3 FY15 at Rs. 274. 000 Million (last year Rs. 443. 000
Million);
Net Profit 9M FY15 at Rs. 2510.000 Million (last year Rs. 1600.000
Million)
Sharp reduction in prices of Chloro-Vinyl products and Sugar impacted
the earnings during the quarter. Balance Sheet continues to be strong.
New Delhi, 3rd Feb 2015: DCM Shriram Limited announced its Q3 and 9M FY15 financial results today.
Q3 ‘15 – HIGHLIGHTS:
- Net Revenues at Rs. 119710.000 Million vis-à-vis Rs. 145220.000 Million in Q3 FY14
- Lower volumes in Sugar, which is a result of lower production in the last season, an Industry phenomenon
- Lower Volumes in Bulk fertilizer, as per plan to optimize sales of Bulk fertilizers
- Steep decline in prices of Chloro-Vinyl and Sugar impacted PBDIT for the quarter, which stood at Rs. 5450.000 Million vs. Rs. 11220.000 Million in same period last year:
- Chlor-Alkali prices for Dec 14 were down 15% over Sept 14, PVC prices were down 17.5% over Sept 14.
- Sugar prices were down 10% over Sept 14. Operating margin is negative ~Rs. 250 per Qtl
- Biased International operations faced challenges on account of Sales returns due to lower sales to farmers and subsequent Inventory write-off
- Performance of Farm Solutions and Fertilizer businesses improved.
- Prices have stabilized in Jan 15 at Dec ’14 levels
- Finance charges at Rs. 2610.000 Million, lower by 19.3% y-o-y
- Net Debt at Rs 4910.000 Million (Dec 31, 2014), down from Rs 6830.000 Million (Mar 31, 2014)
- PAT at Rs. 2740.000 Million vs. Rs. 4430.000 Million. Tax during the quarter was -ve Rs. 2590.000 Million due to higher tax provisioning in earlier quarters
9M ‘15 – HIGHLIGHTS
- Net Revenues at Rs. 432990.000 Million vis-à-vis Rs. 470300.000 Million in 9M FY14 primarily due to lower volumes in Sugar and Bulk fertilizers
- PBDIT stood at Rs. 41720.000 Million vs. Rs. 39650.000 Million in same period last year, up 5.3 %:
a) Bioseed up at Rs. 460.000 Million vs Rs 360.000 Million for same period last year, led by robust performance of BT cotton in India Operations during Kharif ’14.
b) Farm Solutions and Fertilizer business improved performance
c) Sugar losses were lower than same period last year, partly due to receipt of cane price subsidy of Rs. 190.000 Million relating to SY 2013-14
d) Chloro-Vinyl recorded lower profits primarily in Q3FY15, due to sharp decline in prices during the quarter
3. Finance cost sharply lower by Rs. 3660.000 Million, at Rs. 8420.000 Million
4. PAT at Rs 2510.000 Million (LY Rs 1596.000 Million)
Commenting on the
performance for the quarter, in a joint statement, Mr. Ajay Shriram, Chairman
& Senior Managing Director, and Mr. Vikram Shriram, Vice Chairman &
Managing Director, said:
“The Company witnessed a challenging operating environment in Q3’15 with sharp reduction in prices of Chlor-alkali, PVC, Cement and Sugar. The prices have seen some stability in Jan 15 at the reduced levels.
Crushing for Sugar season 2014-15 has started satisfactorily after U.P. State government announced a more reasonable cane pricing policy. They expect the same would be implemented in the right spirit going forward. There is however an need for policy measures to arrest the downward movement in Sugar prices
They are buoyant about the performance of our Bioseed India business. Bioseed overseas business is expected to take couple of years to achieve sustainable growth. They are confident of growth of this business given the strong research program and healthy pipeline of products
The Shriram Farm Solutions and Fenesta businesses continues to perform satisfactorily.
Their balance sheet is strong and can comfortably handle cyclicality in our businesses. Their Capital expenditure programs are on track and will add value to the businesses going forward.”
FERTILISERS:
- Operating performance stable
- Revenue higher on account of increase in gas prices, volumes were also up marginally
- Improved profitability on account of energy savings and increase in reimbursement towards conversion costs by Rs. 500/MT under NPS III w.e.f. April 1 2014
- Subsidy outstanding since Aug ’14
Outlook
- Planned maintenance shutdown in end Q4 FY15
- Increase in domestic gas prices has added to the higher subsidy outstanding
SHRIRAM FARM
SOLUTIONS:
- Volumes of DAP/MOP are lower vis-à-vis last year - in line with plan to optimize Bulk Fertilizers, as required to support ‘Value added inputs’ business
- Value-added inputs’ revenues up 3.3% y-o-y, impacted by adverse weather conditions
- Overall operating margins have improved, led by Bulk Fertilizers
Outlook
- Company will continue to focus on growing the ‘Value added’ portfolio in terms of reach as well as offerings
- High subsidy outstanding in Bulk Fertilizers continues to be an area of concern
BIOSEED:
- Lower sales to farmers in international operations led to sales returns and inventory write offs
- Lower sales led to lower profits and inventory write offs in International business, reflecting longer than expected time being taken to stabilize
- Robust performance of Indian operation driven by growth in BT Cotton seed in Kharif ’14, partly moderated by lower offtake of Corn Seeds.
Outlook
- Bioseed India expected to sustain growth – cotton seeds launched in South and Central markets gaining traction and will likely augment performance
- Augmenting product portfolio and marketing efforts to drive growth in international operations – expected to take couple of years
- Medium to long term outlook buoyant given continuing focus on research and pipeline of products
- Performance of the business has seasonality, with Kharif being the major season in India
SUGAR:
- Revenues down primarily due to lower sales volumes, which was a result of lower production in the last season, an Industry phenomenon
- Sugar prices further softened in Q3 FY15, margins are negative even at operating level
- Earnings further subdued consequent to inventory write down in Q3, sugar inventory valued at Rs. 2,750 per quintal
- Co-gen power tariff revised upwards by Rs. 0.49 per unit w.e.f. April 1, 2014 – reflected in earnings
- Current season’s Sugar recovery trends so far better than last year
- Not accounted benefit of proposed Cane subsidy announced by UP Government, pending issue of the Notification
Outlook
- Cane Policy for SY 2014-15 a step forward. Full implementation in right spirit will help
- Cane crush expected to be marginally lower, may get mitigated partly by higher recoveries
CHLORO VINYL:
- Chlor- Alkali and PVC (Vinyl) prices have declined significantly in Q3 over Q2 FY15, putting pressure on margins
- There has been marginal reduction in input costs with decline in Salt prices and imported Coal prices
Outlook
- The prices after witnessing a low in Dec ’14 have stabilized in Jan ‘15. Further movement linked to global developments
- Company has renewed its focus on cost optimization
Cement:
- Volumes up by 3% y-o-y; realisations increased by 4% vs. last year
- Input costs continue to exert pressure on margins
HARYALI KISAAN BAZAAR:
- Current revenues from fuel sales only
- Sale of properties progressing slowly, expected to take about 2-3 years
Others:
Fenesta
- Company continues to focus on the ‘Retail’ segment
- ‘Retail’ segment’s order book and revenues up 44% and 31% respectively vis-à-vis last year
- Retail segment’s contribution to overall sales at 75%, up from 65% in Q3 FY14
- Business continues to breakeven at operating level
- Order booking registered good growth in Q3 with some revival in project orders.
- JV with Axiall Corporation for PVC compounding business is progressing as per plan
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No
record exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our
market survey revealed that the amount of compensation sought by the subject is
fair and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report : No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.18 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.25 |
INFORMATION DETAILS
|
Information
Gathered by : |
MNJ |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
65 |
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.