MIRA INFORM REPORT

 

 

Report No. :

311277

Report Date :

09.03.2015

 

IDENTIFICATION DETAILS

 

Name :

EXCEL INDUSTRIES LIMITED

 

 

Registered Office :

184-87, Swami Vivekanand Road, Jogeshwari (West), Mumbai - 400102, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

05.09.1960

 

 

Com. Reg. No.:

11-011807

 

 

Capital Investment / Paid-up Capital :

Rs. 58.528 Million

 

 

CIN No.:

[Company Identification No.]

L24200MH1960PLC011807

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEE01415B

 

 

PAN No.:

[Permanent Account No.]

AAACE2488F

 

 

Legal Form :

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

 

 

Line of Business :

Subject is engaged in manufacturing of Chemicals, Pharma intermediates and Environmental products.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (60)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 4300000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well-established company having fine track record.

 

The rating reflects company’s healthy financial risk profile marked by adequate position and sound profitability margins of the company.

 

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

 

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

 

NOTES :

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

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

CRISIL

Rating

Long term rating: A-

Rating Explanation

Adequate degree of safety and low credit risk.

Date

03.03.2015

 

 

Rating Agency Name

CRISIL

Rating

Short term rating: A2+

Rating Explanation

Strong degree of safety and low credit risk.

Date

03.03.2015

 

 

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 31-03-2014.

 

LOCATIONS

 

Registered/ Head Office :

184-87, Swami Vivekanand Road, Jogeshwari (West), Mumbai - 400 102, Maharashtra, India

Tel. No.:

91-22-66464200/ 26704569/ 26704653/ 26794866/ 26705812/ 26788258/ 69/ 269433000/ 26784255/26788258

Fax No.:

91-22-66963514/ 26784522 / 26783732 /26783657

E-Mail :

excelmumbai@excelind.co.in

grievance@excelind.com

surendra.singhvi@excelind.com

Website :

www.excelind.co.in

 

 

Factory 1 :

Plot No.112, M.I.D.C. Industrial Area, Dhatav, Roha, District Raigad-402 116, Maharashtra, India

 

 

Factory 2 :

D-9, M.I.D.C Lote Parashuram, Taluka Khed, Ratnagiri-415722, Maharashtra, India

 

 

Factory 3 :

Near Sewage Farm, Narol Sarkhej Octroi Noka, Baherampura – 380 022, Ahmedabad, Gujarat, India

 

 

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. K C Shroff

Designation :

Chairman Emeritus

 

 

Name :

Mr. G Narayana

Designation :

Chairman Emeritus

 

 

Name :

Mr. Ashwin Champraj Shroff

Designation :

Chairman and Managing Director

 

 

Name :

Mrs. Usha Ashwin Shroff

Designation :

Whole Time Director 

 

 

Name :

Mr. Setumadhav Rangrao Potdar

Designation :

Executive Director (upto 02/09/2014)

 

 

Name :

Mr. R. A. Shroff,

Designation :

Executive Director (w.e.f. 03/09/2014)

 

 

Name :

Mr. Atul Govindji Shroff

Designation :

Director

 

 

Name :

Mr. D. K. Shroff

Designation :

Director

 

 

Name :

Mr. N. B. Sathe

Designation :

Director

 

 

Name :

Mr. R. N. Bhogale

Designation :

Director

 

 

Name :

Mr. H. N. Motiwalla

Designation :

Director

 

 

Name :

Mr. P. S. Jhaveri

Designation :

Director

 

 

Name :

Mr. M. B. Parekh

Designation :

Director

 

 

Name :

Mr. S. S. Vaidya

Designation :

Additional Director (w.e.f. 08/08/2014)

 

 

Name :

Mr. R. M. Pandia

Designation :

Additional Director (w.e.f. 08/08/2014)

 

 

KEY EXECUTIVES

 

Name :

Mr. Kailas Dabholkar

Designation :

Chief Financial Officer

 

 

Name :

Mr. S. K. Singhvi

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2014

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

423848

3.56

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

5057100

42.48

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

5480948

46.04

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals (Non-Residents Individuals / Foreign Individuals)

104082

0.87

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

104082

0.87

Total shareholding of Promoter and Promoter Group (A)

5585030

46.91

(B) Public Shareholding

 

 

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

 

 

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

850

0.01

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

1015629

8.53

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

822

0.01

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

0

0.00

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

1017301

8.54

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

 

 

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

390485

3.28

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

 

 

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

3726906

31.30

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

1104097

9.27

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

81811

0.69

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

81811

0.69

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

5303299

44.54

Total Public shareholding (B)

6320600

53.09

Total (A)+(B)

11905630

100.00

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

0

0.00

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

0

0.00

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

0

0.00

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

0

0.00

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

11905630

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in manufacturing of Chemicals, Pharma intermediates and Environmental products.

 

 

Products :
  • Chemicals
  • Pharma intermediates
  • Environmental products.

 

 

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 

Maximum Limit Dealt :

Not Available 

Experience :

Not Available 

Remark:

Not Available 

 

 

Customers :

Reference :

Not Available 

Name of the Person :

Not Available 

Contact No.:

Not Available 

Since How Long Known :

Not Available  

Maximum Limit Dealt :

Not Available 

Experience :

Not Available 

Remark:

Not Available 

 

 

No. of Employees :

Not Available 

 

 

Bankers :
  • Bank of India
  • State Bank of India
  • Axis Bank Limited

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

Term Loans

Indian rupee loan from banks

115.139

0.000

From other:

Under vehicle finance scheme

1.464

1.897

Short-term borrowings

 

 

Cash credit and packing credit

381.698

387.851

Working capital demand loan

98.861

98.861

Total

597.162

488.609

Note:

 

Loan from Bank of India amounting to Rs.52.361 Million (Previous Year: Rs.Nil) is for a period of five years carrying interest rate of 12% p.a. and is secured by first exclusive charge by way of hypothecation of plant and machinery and further secured by equitable mortgage of land and buildings of the factory located at Roha.

 

Loan from HDFC Bank Limited. amounting to Rs.100.000 Million (Previous Year: Rs.Nil ) is for a period of five years carrying rate of interest @12.6%  p.a. and is secured by exclusive charge by way of hypothecation of entire movable assets at Lote Parashuram and further secured by equitable mortgage of immovable assets at Lote Parashuram.

 

Term loan under vehicle finance from a financial institution amounting to Rs.21.86 lacs (Previous Year: Rs.3.721 Million) carrying interest rate ranging from 12% to 14 % p. a. repayable in equated monthly instalments and secured by hypothecation of the vehicles acquired by utilising the said loans.

 

Finance lease obligation to Siemens Financial Services Private Limited amounting to Rs.52.259 Million (Previous Year: Rs.Nil) is for a period of three years and carry the interest @ 12.50% p. a.

 

Deposits from shareholders and public are repayable after two and three years from the respective dates of deposits and carry the interest @ 9.5% p.a. and @ 10% p.a. respectively.

 

Cash credit, packing credit and working capital demand loan from banks are secured by hypothecation of all tangible movable assets both present and future including stock of raw materials, finished goods, goods in process, stores and trade receivable etc and is further secured by a second charge on the fixed assets at Roha and Lote Parashuram. The cash credit, packing credit and working capital demand loan is repayable on demand and carries interest rates @ 10.45% to 13.5% p.a.

 

Outstanding foreign currency buyer’s credit loan are unsecured and carry an interest rate ranging from libor plus 85 bps to 130 bps. Short term unsecured loan from HDFC Bank Ltd is payable within a period of six months and carries interest rate of 11.25% p.a and unsecured loan from YES Bank Ltd is payable within a period of twelve months and carries interest rate of 12.75% p.a. Inter Corporate Deposits are repayable within a period of 3 months and carries interest rates @ 12% to 12.5% p.a.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. R. Batliboi and  Company LLP

Chartered Accountants

Address:

14th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai – 400028, Maharashtra, India

Tel No.:

91-22-61920000

Fax No.:

91-22-61921000

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Enterprises owned or significantly influenced by Key Management Personnel or their relatives:
  • Agrocel Industries Limited
  • Anshul Specialty Molecules Limited
  • C. C. Shroff Research Institute
  • C. C. Shroff Self Help Centre
  • Dipkanti Investments and Financing Private Limited
  • Divakar Techno Speciality and Chemicals Limited
  • Excel Crop Care Limited
  • Good Rasayan Limited
  • Hyderabad Chemical Supplies Limited
  • Hyderabad Chemical Products Limited
  • Pidilite Industries Limited
  • Pritami Investments Private Limited
  • Shrodip Investments Private Limited
  • Shrujan Trust
  • Transpek Industry Limited
  • Transpek Industry (Europe) Limited
  • Utkarsh Chemicals Private Limited
  • Utkarsh Global Holdings Private Limited
  • Rashtriya Seva Trust
  • Transpek-Silox Industry Limited
  • Shri Seetha Rama Seva Sadan
  • Samarth Gram Vikas Trust
  • Indian Centre for Climate and Social Impact Research

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital:

No. of Shares

Type

Value

Amount

38000000

Equity Shares

Rs.5/- each

Rs.190.000 Million

850000

11% Cumulative Redeemable Preference Shares

Rs.10/- each

Rs.8.500 Million

300000

Unclassified Shares

Rs.5/- each

Rs.1.500 million

 

 

 

 

 

Total

 

Rs.200.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10905630

Equity Shares

Rs.5/- each

Rs.54.528 Million

 

 

 

 

 

NOTE:

 

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

 

Equity Shares

31.03.2014

 

 

Nos.

Rs. In Million

At the beginning of the period

10,905,630

54.528

Fresh issue of shares during the period

--

--

Outstanding at the end of the period

10,905,630

54.528

 

Terms/rights attached to equity shares

 

The Company has only one class of equity shares having a par value of ` 5/- per share.  Each holder of equity share carries one vote and is entitled to dividend that may be declared by the Board of Directors, which is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2014, the amount of per share dividend recognised as distributions to equity shareholders was ` 3.75/- (Previous year: ` 3/-) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

Details of shareholders holding more than 5% shares in the Company (as per the register of members of the Company are as under):-

 

Name of the shareholder

31.03.2014

 

 

Nos. of

Shares

% holding in

the class

Equity shares of Rs.5/- each fully paid

 

 

Life Insurance Corporation of India

1,012,799

9.29

Utkarsh Global Holdings Private Limited

3,331,182

30.55

 

As per of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

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

54.528

54.528

54.528

(b) Reserves & Surplus

1411.945

1284.976

1175.097

(c) Money received against share warrants

34.500

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

1500.973

1339.504

1229.625

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

258.708

105.007

54.515

(b) Deferred tax liabilities (Net)

138.283

147.250

140.624

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

128.288

80.532

53.674

Total Non-current Liabilities (3)

525.279

332.789

248.813

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

687.537

593.513

582.616

(b) Trade payables

526.650

499.474

451.416

(c) Other current liabilities

175.281

139.003

246.609

(d) Short-term provisions

84.617

113.043

84.058

Total Current Liabilities (4)

1474.085

1345.033

1364.699

 

 

 

 

TOTAL

3500.337

3017.326

2843.137

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1265.515

1183.313

1069.634

(ii) Intangible Assets

18.228

25.318

5.188

(iii) Capital work-in-progress

200.904

47.691

55.997

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

141.315

141.315

141.314

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

128.108

41.136

36.038

(e) Other Non-current assets

10.500

17.800

7.300

Total Non-Current Assets

1764.570

1456.573

1315.471

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

481.408

427.053

476.012

(c) Trade receivables

1015.975

888.619

839.248

(d) Cash and cash equivalents

88.427

68.192

73.378

(e) Short-term loans and advances

129.756

160.450

116.520

(f) Other current assets

20.201

16.439

22.508

Total Current Assets

1735.767

1560.753

1527.666

 

 

 

 

TOTAL

3500.337

3017.326

2843.137

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

4169.193

3841.130

3154.948

 

Other Income

45.623

40.512

46.595

 

TOTAL (A)

4214.816

3881.642

3201.543

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

2307.417

2077.022

1726.192

 

Purchases of Stock-in-Trade

88.780

76.273

71.739

 

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

(11.303)

(48.430)

(37.053)

 

Employees benefits expense

552.195

507.976

415.117

 

Other expenses

839.921

828.369

721.335

 

Exceptional item

0.000

0.000

(72.401)

 

TOTAL (B)

3777.010

3441.210

2824.929

 

 

 

 

 

Less

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

437.806

440.432

376.614

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

122.158

122.076

89.584

 

 

 

 

 

 

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

315.648

318.356

287.030

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

110.306

101.321

96.954

 

 

 

 

 

 

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

205.342

217.035

190.076

 

 

 

 

 

Less

TAX (I)

30.527

68.879

43.293

 

 

 

 

 

 

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

174.815

148.156

146.783

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD 

124.460

114.581

113.147

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Proposed Dividend

40.896

32.717

21.811

 

Tax on Dividend

6.950

5.560

3.538

 

Transfer to General Reserve

120.000

100.000

120.000

 

Balance Carried to the B/S

131.429

124.460

114.581

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

657.833

733.865

611.953

 

Technical Fees

0.000

1.141

8.888

 

Commission

0.000

0.000

2.446

 

TOTAL EARNINGS

657.833

735.006

623.287

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

1247.994

928.275

725.121

 

Capital goods

5.350

13.201

7.532

 

Components and Spare Parts

0.000

0.000

0.249

 

Purchase of Traded Goods

0.470

0.355

11.650

 

TOTAL IMPORTS

1253.814

941.831

744.552

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

 

 

 

Basic

16.03

13.59

13.46

Diluted

16.00

13.59

 

 

QUARTERLY RESULTS

 

 

Particulars

30.06.2014

1st Quarter

30.09.2014

2nd Quarter

31.12.2014

3rd Quarter

Audited / UnAudited

UnAudited

UnAudited

UnAudited

Net Sales

1213.300

1318.100

1171.400

Total Expenditure

1011.500

1097.900

986.200

PBIDT (Excl OI)

201.900

220.200

185.200

Other Income

5.300

9.600

16.100

Operating Profit

207.200

229.800

201.300

Interest

34.500

34.500

33.600

Exceptional Items

0.000

0.000

0.000

PBDT

172.700

195.300

167.800

Depreciation

32.300

36.600

38.400

Profit Before Tax

140.400

158.700

129.400

Tax

40.900

51.300

44.500

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

99.500

107.400

85.000

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

99.500

107.400

85.000

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

4.19

3.86

4.65

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

10.50

11.47

11.94

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.50

7.67

7.18

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.14

0.16

0.15

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.63

0.52

0.52

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.18

1.16

1.12

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

54.528

54.528

54.528

Reserves & Surplus

1175.097

1284.976

1411.945

Money received against share warrants

0.000

0.000

34.500

Net worth

1229.625

1339.504

1500.973

 

 

 

 

long-term borrowings

54.515

105.007

258.708

Short term borrowings

582.616

593.513

687.537

Total borrowings

637.131

698.520

946.245

Debt/Equity ratio

0.518

0.521

0.630

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

3154.948

3841.130

4169.193

 

 

21.749

8.541

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

3154.948

3841.130

4169.193

Profit

146.783

148.156

174.815

 

4.65%

3.86%

4.19%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

LITIGATION DETAILS

 

CASE DETAILS

 

BENCH:-BOMBAY

 

Lodging No.:-

ITXAL/213/2013

Filing Date:-

31/01/2013

Reg. No.:-

ITXA/1465/2014

Reg. Date:-

23/09/2014

 

 

Petitioner:-

THE COMMISSIONER OF INCOME TAX CENTRAL III, MUMBAI

 

Respondent:-

M/S EXCEL INDUSTRIES LTD.

Petn.Adv.:-

PADMA DIVAKAR (0)

 

 

Resp.Adv.:-

0 (0)

 

 

District:-

MUMBAI

 

 

Bench:-

DIVISION

Status:-

Admitted(Unready)

Category:-

TAX APPEALS

 

Last Date:-

28/08/2014

Stage:-

FOR DIRECTION [ORIGINAL SIDE MATTERS]

 

Last Coram:-

HON'BLE SHRI JUSTICE S.C. DHARMADHIKARI

 

HON'BLE SHRI JUSTICE A. K. MENON

 

 

Act :-

Income Tax Act, 1961

Under Section:-

260A

 

OPERATIONS

 

During the year, the net sales increased from Rs.3789.600 Million to Rs.4097.900 Million, registering a growth of 8% but the exports decreased from Rs.750.100 Million to Rs.674.000 Million registering a decrease of 10%. Further, the Company made a profit of Rs.20.53 crores before taxation compared to Rs.217.000 Million in the previous year. Net profit after tax amounted to Rs.17.48 crores as compared to Rs.148.200 Million in the previous year.

 

NEW PROJECTS/EXPANSIONS/IMPROVEMENTS

 

The Company has developed new products in both Pharma and Polymer fields and is aggressively pursuing opportunities. The revenue from these new areas is expected to exceed 10% of the total revenue in the current year. This growth in Polymer inputs is being generated out of the existing production facilities whereas the new Pharma plant built last year is expected to produce to its capacity this year. Various product approvals from large Pharma customers are being actively pursued.

 

OUTLOOK

 

Phosphorus based intermediates are experiencing continued growth due to increased production of agro-chemicals for both domestic consumption and export. The depreciation of the Rupee has made the Company’s Phosphonates quite competitive and volume growth will be maintained. New product introductions in polymer and pharma sectors will add good portions to the sales revenue. The Company has received local FDA approval for the Pharma manufacturing Plant at Lote Parshuram and Veterinary Pharma manufacturing Plant at Roha, and the commercial production of Active Pharmaceutical Ingredients (APIs) and intermediates of the APIs have commenced during the year. The Company has plans to launch new APIs and intermediates in the coming months. Newer models of Organic Waste Converter (OWC) have been launched and Celrich sales from Ahmedabad Plant to large fertilizer companies have also began.

 

The Company hopes to maintain growth in sales and hopes to improve the profit.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

BUSINESS REVIEW

 

Business Segment – Chemicals Business Segment

 

Industry structure and development:

 

Major portion of the Company’s revenue comes from Specialty Chemicals and Intermediates developed and produced for various industry segments like Agricultural Chemicals, Lubricant Oil Additives, Mineral Beneficiation additives, Dyes and Intermediates, Polymer manufacturing and processing and Pharmaceuticals. The Company also delivers performance enhancing chemicals and intermediates to industry sectors like water and its treatment, textiles auxiliaries, Soaps and detergents, preservation of industrial products, and management of Industrial hygiene. The end user industries consuming these intermediates have been growing steadily. While the Company faced severe and wide spread competition from China till a few years ago, there is a distinct shift towards sourcing from domestic producers as of now. Imports from the western world have also been coming down and even the western end product producers have been looking to source intermediates from India in preference to supplies from China.

 

Besides the local subsidiaries of large global chemical companies, the Intermediates industry is constituted by a large number of indigenous medium scale units most of them have been experiencing good growth rate, higher than the general industry or economy growth. The market for these companies is both domestic and export. While the growth in the domestic market is driven by growing consumption of existing end products, the export market is driven by the need for process development and production of newer intermediates for use in high end performance delivering chemical formulations that large global corporations worldwide continue to develop. Intermediates producer group is certainly coming of age today whereas the yester year chemicals industry was dominated by bulk chemical producers.

 

SEGMENT WISE PERFORMANCE AND OUTLOOK:

 

The agrochemicals intermediates group performed better in terms of volume growth but had to compromise on margins. The main competition in the Phosphonates market was from China and this year, the reduced availability from China and the rupee depreciation helped the Company to recover a good portion of the market lost earlier. Theyalso increased the share in the Pharma intermediates through higher production and also by developing new customers. The biocides demand saw a good jump thanks to the Company’s efforts in developing a new application in the preservation of wood and MDF.

 

All the efforts are slated to sustain and grow so that the Company can attain higher than ever capacity utilization in the coming year. The relative slowdown in the Chinese Economic growth and the increasing controls on Industrial Pollution there offers a vast opportunity for growth in India. The Company has taken steps to produce highest ever tonnages of several products and will succeed in checking the imports. The FDA approval received in early 2014-15 will boost the output and value realization from the Pharma plant.

 

BUSINESS SEGMENT – ENVIRONMENT AND BIOTECH DIVISION

 

INDUSTRY STRUCTURE AND DEVELOPMENT:

 

The Municipal Solid Waste (MSW) Management industry in India has developed interesting trends. Broadly, the industry can be bucketed into the following sets of players:

 

Concession Owners – A bunch of medium to large infrastructure players with or without prior experience in waste management continue to bid for MSW treatment contracts with large and small municipal corporations. While the philosophy of the ULB’s in India continue to be one in which they expect the waste to be treated free of cost, these companies are not shying away from making investments in these projects. They acquire and integrate various technologies for segregation, converting inorganic waste to RDF and complete combustion of waste to energy.

 

Technology developers for Waste to Energy – Several entrepreneur driven medium and small companies are actively developing technologies for converting waste to energy. These technologies include but are not limited to

conversion of plastics to fuel, conversion of agricultural waste to solid fuel briquettes and anaerobic digestion for converting organic waste to biogas and subsequently to energy.

 

Technology developers for de-centralized waste management – While the above two call for large investments,

regulatory push and change, India is experiencing the largest wave of de-centralized waste management and adaptation of technologies for the same. Excel continues to be the front runner in advocating this philosophy. Many large and small companies have seen this as a potentially large opportunity and are jumping the bandwagon. Technologies include Organic Waste Converter and In-vessel Composting, small biogas plants and de-centralized plants for converting waste to energy.

 

SEGMENT WISE PERFORMANCE AND OUTLOOK:

 

While the division clocked the highest number of machine sales in a year, the margins remained under pressure due to increasing competition in the de-centralized waste management business. Through aggressive and innovative advertising, the division continued to spread awareness and create more inquiries for OWC machines across the country and internationally. Some of the marketing initiative included direct marketing, in-flight magazine advertisements, participation in exhibitions and conferences, online advertising and use of mobile van for demonstrations in schools, housing societies and companies. The division will continue to reach out to more target audience in innovative and impactful ways in the years to come. The division launched its brand new in-vessel composting machine named ‘Bioneer’. After extensive research, development and trials Bioneer was launched the last quarter of the year and also won two prestigious orders from large companies in India. The division received and responded to inquiries for OWC and Bioneer from many countries in the Indian Sub continent, Asia and Africa.

 

Likewise, the sale of Sanitreat reached its highest ever level thanks to the increasing awareness of the product with Urban Local Bodies for odtheircontrol. The division received positive written communication endorsing the quality and effectiveness of Sanitreat. Though the sale of City Compost from the plant at Pirana were not as desired, the outlook is positive. With continuous RandD and engineering innovations in de-centralized composting solutions, the outlook for this business is very positive. With continuous marketing efforts in India and internationally through smart advertising, induction of fresh talent and like-minded partners, the outlook is very positive.

 

With the increasing awareness and demand of good quality organic manure by farmers and thus the fertilizer marketing companies coupled with the closure of competing plants in Ahmedabad, the outlook is positive. In all, substantial growth is projected for both arms of the division in the coming year.

 

CORPORATE INFORMATION

 

Subject is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in manufacturing of Chemicals, Pharma intermediates and Environmental products. Chemicals comprising of Industrial and Specialty chemicals and Pesticides Intermediates. Environmental products comprising of Soil Enricher, Bio-Pesticides and other Bio-products. The Company is also engaged in manufacturing activity on behalf of third parties.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

From other:

Finance lease obligation

36.240

0.000

From shareholders

16.511

18.228

From public

89.354

84.882

Short-term borrowings

 

 

Foreign currency buyer’s credit loan

97.430

61.992

Short Term Loan from Banks

59.548

9.809

From others

Inter corporate deposits

50.000

35.000

Total

349.083

209.911

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10484913

28/01/2014

100,000,000.00

BANK OF INDIA

ANDHERI MID CORPORATE BRANCH, 28, MDI. BUILDING,
1ST FLOOR, S.V ROAD, ANDHERI (WEST), MUMBAI, MAHARASHTRA - 400058, INDIA

C00518589

2

10450935

14/09/2012

100,000,000.00

HDFC BANK LIMITED

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

B81127441

3

10013940

11/08/2006

45,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, G.N.VAIDYA MARG, MUMBAI, MAHAR
ASHTRA - 400023, INDIA

A03346046

4

90241253

31/07/2009 *

940,000,000.00

BANK OF INDIA

28, S.V. ROAD, ANDHERI [WEST], MUMBAI, MAHARASHTRA - 400058, INDIA

A67992669

5

80007909

10/07/2006 *

150,000,000.00

CENTRAL BANK OF INDIA

MULLA HOUSE,, 51, MAHATMA GANDHI ROAD, MUMBAI, MAHARASHTRA - 400023, INDIA

A02702751

6

80007908

05/04/2002

150,000,000.00

CENTRAL BANK OF INDIA

MULLA HOUSE, 51, MAHATMA GANDHI ROAD, MUMBAI, MAH
ARASHTRA - 400023, INDIA

-

7

90240788

31/07/2009 *

940,000,000.00

BANK OF INDIA

28, S.V.ROAD,, ANDHERI [WEST], MUMBAI, MAHARASHTR
A - 400058, INDIA

A67997445

8

80038897

16/07/2009 *

940,000,000.00

BANK OF INDIA

28, S.V. ROAD ,, ANDHERI [WEST], MUMBAI, MAHARASH
TRA - 400058, INDIA

A67016915

9

80038896

13/01/2001

1,400,900,000.00

BANK OF INDIA

ANDHERI (WEST) BRANCH, MUMBAI, MAHARASHTRA - 400058, INDIA

-

 

* Date of charge modification

 

UNAUDITED FINANCIAL RESULTS FOR THE    QUARTER ENDED AND NINE MONTHS ENDED 31, DECEMBER, 2014

 

(Rs. In Million)

Particulars

Quarter Ended

( Unaudited)

Quarter Ended

( Unaudited)

Year to date

( Unaudited)

 

31.12.2014

30.09.2014

31.12.2014

 

 

 

 

1. Income from operations

 

 

 

a) Net sales/ Income from operation (net of excise duty)

1151.635

1304.247

3654.477

b) Other operating income

19.769

13.859

48.375

Total income from Operations(net)

1171.404

1318.106

3702.852

2.Expenditure

 

 

 

Cost of material consumed

629.307

639.106

1897.563

Purchase of stock in trade

19.629

25.986

75.540

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

(74.074)

35.799

(56.500)

Employees benefit expenses

171.600

148.812

467.521

Depreciation and amortization expenses

38.352

36.641

107.283

Other expenditure

239.728

248.190

711.422

Total expenses

1024.542

1134.534

3202.829

3. Profit from operations before other income and financial costs

146.862

183.572

500.023

4. Other income

16.122

9.622

31.039

5. Profit from ordinary activities before finance costs

162.984

193.194

531.062

6. Finance costs

33.556

34.490

102.55

7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items

162.984

158.704

428.507

8. Exceptional item

0.000

0.000

0.000

9. Profit from ordinary activities before tax Expense:

162.984

158.704

428.507

10.Tax expenses

33.556

51.312

136.619

11.Net Profit / (Loss) from ordinary activities after tax (9-10)

129.428

107.392

291.888

12.Extraordinary Items (net of tax expense)

0.000

0.000

0.000

13.Net Profit / (Loss) for the period (11 -12)

129.428

107.392

291.888

14.Paid-up equity share capital (Nominal value Rs.10/- per share)

59.528

54.528

59.528

15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

--

--

--

16.i) Earnings per share-Basic & Diluted (in Rupees)

(*not annualised)

 

 

 

Basic

7.66

9.85

26.61

Diluted

7.15

8.70

24.80

 

 

Particulars

Quarter Ended

( Unaudited)

Quarter Ended

( Unaudited)

Year to date

( Unaudited)

 

31.12.2014

30.09.2014

31.12.2014

A. Particulars of shareholding

 

 

 

1. Public Shareholding

 

 

 

- Number of shares

6320600

6320600

6320600

- Percentage of shareholding

53.09

57.96

53.09

2. Promoters and Promoters group Shareholding-

 

 

 

a) Pledged /Encumbered

 

 

 

Number of shares

11019

38519

11019

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

0.20

0.84

0.20

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

0.09

0.35

0.09

 

 

 

 

b) Non  Encumbered

 

 

 

Number of shares

5574011

4546511

5574011

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

99.80

99.16

99.80

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

46.82

41.69

46.82

 

 

 

 

B. Investor Complaints

 

 

 

Pending at the beginning of the quarter

NIL

 

 

Receiving during the quarter

7

 

 

Disposed of during the quarter

7

 

 

Remaining unreserved at the end of the quarter

NIL

 

 

 

 

UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

(Rs. In Million) 

Particulars

Quarter Ended

( Unaudited)

Quarter Ended

( Unaudited)

Year to date

( Unaudited)

 

31.12.2014

30.09.2014

31.12.2014

1. Segment Revenue

 

 

 

a. Chemicals

1135.275

1285.270

3603.446

b. Environment and Biotech

36.129

32.836

99.406

Net Income from Operations

1171.404

1318.106

3702.852

 

 

 

 

2. Segment Result

 

 

 

a. Chemicals

220.417

238.074

683.698

b. Environment and Biotech

1.046

(2.459)

(3.808)

Total

221.463

235.615

679.890

 

 

 

 

Less : i) Interest

33.556

34.490

102.555

ii) Other Un-allocable Expenditure (net) Un-allocable Income

58.479

42.421

148.828

Profit before Tax

129.428

158.704

428.507

 

 

 

 

3. Capital Employed

(Segment Assets-Segment Liabilities)

 

 

 

a. Chemicals

2603.181

2598.600

2603.181

b. Environment and Biotech

71.812

66.486

71.812

c. Unallocated

45.074

39.858

45.074

Total

2720.067

2704.944

2720.067

 

NOTE:

 

The above results as reviewed by the Audit Committee have been approved at the meeting of the Board of Directors held on 30th January, 2015, and subjected to Limited Review by the Statutory Auditors,


Effective from April 1, 2014, the Company has provided depreciation with reference to the useful lives of tangible assets as specified in Schedule II to the Companies Act, 2013. Accordingly, the carrying amount, net of residual value, as on that date has been depreciated over the revised remaining useful lives of the assets. The Company has also rationalised the depreciation policy and has decided to provide 100% depreciation on additions to assets costing Rs. 25000 or less. As a result, the charge for depreciation is higher by % 7.290 Million and Rs. 19.887 Million for the quarter and nine months period ended 31st December, 2014 respectively. Further, an amount of Rs. 26.785 Million (net of deferred tax Rs. 13.793 Million) has been adjusted against the opening balance of surplus in the Statement of Profit and Loss, being the carrying amount of assets after retaining residual value as on 1st April, 2014, in cases where the remaining useful lives have been completed.


Depreciation has been provided on straight line basis on laboratory equipments, furniture & fixture, vehicle and office equipments added on or after April 1, 2014, For similar assets acquired upto 31st March, 2014, the depreciation has been continued to be provided on written down value basis.

 

During the quarter, the Company has allotted 10,00,000 Equity Shares of Rs. 5 each at a price of Rs. 69 per share on conversion of warrants issued on a preferential basis to Utkarsh Global Holdings Private Limited, a Promoter Group Company.


The Board of Directors in the meeting held on 31st October, 2014 had declared interim dividend of 60% amounting to Rs.3/- per equity share of Rs. 5/- each aggregating to Rs. 32.717 Million. The same has been paid in the current quarter.


The figures for the previous periods / year have been regrouped wherever necessary.

 

FIXED ASSETS

 

Tangible assets

 

  • Land free Hold
  • Land lease hold
  • Leasehold improvements
  • Buildings
  • Plant and machinery
  • Data processing equipments
  • Electrical installation
  • Laboratory equipments
  • Furniture fixture
  • office equipments
  • Vehicles
  • Technical books

 

Intangible assets

 

  • Trade marks
  • Computer software
  • Export product registration

 

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 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.62.20

UK Pound

1

Rs.94.71

Euro

1

Rs.68.60

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KVT

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILITY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

6

--RESERVES

1~10

7

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

 

60

 

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

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NB

                                       New Business

 

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

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