MIRA INFORM REPORT

 

 

Report No. :

319828

Report Date :

02.05.2015

 

IDENTIFICATION DETAILS

 

Name :

AKZO NOBEL INDIA LIMITED (w.e.f. 31.03.2010)

 

 

Formerly Known As :

ICI INDIA LIMITED

 

 

Registered Office :

Geetanjali Apartment, 1st Floor, 8-B, Middleton Street, Kolkata – 700071, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

12.03.1954

 

 

Com. Reg. No.:

21-021516

 

 

Capital Investment / Paid-up Capital :

Rs. 467.000 Million

 

 

CIN No.:

[Company Identification No.]

L24292WB1954PLC021516

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALA05853B

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of Paints.

 

 

No. of Employees :

1854 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (68)

 

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 24000000

 

 

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 supported by sizeable market share as well as strong brand position in the decorative paints segment and adequate liquidity position of the company.

 

Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitments.

 

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

Short term debt: A1+

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

19.11.2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

 

 

LOCATIONS

 

Registered Office :

Geetanjali Apartment, 1st Floor, 8-B, Middleton Street, Kolkata – 700071, West Bengal, India

Tel. No.

91-33-22267462

Fax No.

91-33-22277925

E-Mail

aditya_narayan@ici.com

r-guha@ici.com

r.guha@akzonobel.com

Website

www.akzonobel.co.in

 

 

Corporate Office :

DLF Epitome Building No 5, Tower A, 20th Floor, Cyber City, DLF Phase III, Gurgaon – 122002, Haryana, India

Tel. No.

91-124-2540400

Fax No.

91-124-2540849

 

 

Plant (Coatings)/ Thane Office :

Plot No. 1/1 TTC Industrial Area, Thane Belapur Road, Kopar Khairane, Navi Mumbai – 400709, Maharashtra, India

Tel. No.:

91-22-27780000

Fax No.:

91-22-27780025

E-Mail :

anil_krishna@ici.com

 

 

PLANT LOCATIONS:

 

Coatings:

·         Hyderabad Works, Balanagar, Hyderabad - 500037, Andhra Pradesh, India

 

·         Plot No 62 P, Hoskote Industrial Area, Pilgumpa Village, Bangalore - 562114, Karnataka, India

 

·         Plot No. GAE-1 (Part), GAF-1 & GAF-2, Industrial Area, Ghirongi (Malanpur), Bhind - 477117, Madhya Pradesh, India

 

·         Plot No. A-42, Phase-VIIIB, Focal Point, SAS Nagar, Mohali - 160059, Punjab, India

 

 

Chemicals :

Plot No. E-19/20, MIDC Area, Mahad, Raigad – 402301, Maharashtra, India

 

 

Headquarters : 

Located at

 

·         Gurgaon, Haryana, India

 

 

Research and Technology Centre : 

Located at

 

·         Thane, Maharashtra, India

 

 

Surface Chemistry :

Located at

 

·         Thane, Maharashtra, India

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. N Kaviratne CBE

Designation :

Chairman

Qualification :

Bachelor of Arts (Honours) degree with a major in Economics from Mumbai University

Date of Appointment :

01.10.2010

 

 

Name :

Mr. A Jain

Designation :

Managing Director (upto 31 December 2013)

 

 

Name :

Mr. Jayakumar Krishnaswamy

Designation :

Managing Director

Date of Birth/ Age:

49 Years

Qualification :

Mechanical Engineer

Date of Appointment :

01.03.2014

 

 

Name :

Mr. Himanshu Agarwal

Designation :

Whole-time Director

Date of Birth/ Age:

44 Years

Qualification :

Chartered Accountant, Company Secretary and Cost and Management Accountant

Date of Appointment :

02.09.2013

 

 

Name :

Mr. Amit Jain

Designation :

Non-Executive Director

Date of Birth/ Age:

50 Years

Qualification :

management degree from the Faculty of Management Studies, Delhi, and has completed an Advanced Management Program from the Wharton Business School

Date of Appointment :

02.01.2014

 

 

Name :

Mr. Robert Molenaar

Designation :

Non-Executive Director

Date of Birth/ Age:

54 Years

Qualification :

Graduation in Polymer Chemistry from University Enschede and post-graduation from the Harvard Business School.

Date of Appointment :

14.05.2013

 

 

Name :

Ms. S Govil (Alternate Director to Mr. R Molenaar)

Designation :

Director

 

 

Name :

Mr. R Gopalakrishnan

Designation :

Non-Executive Director

Qualification :

Bachelor of Science in Physics from the University of Calcutta and has a B.Tech from IIT, Kharagpur

 

 

Name :

Mr. Raj S Kapur

Designation :

Non-Executive Director

Date of Birth/ Age:

September, 1950

Qualification :

Chemical Engineer from the Indian Institute of Technology (IIT), Kanpur and a Masters in Business Administration (MBA) in Finance & Marketing from the Central Michigan University, USA. He also holds a Masters in Polymer Engineering from Case Western University, USA.

Date of Appointment :

01.03.2014

 

 

Name :

Ms. Renu S Karnad

Designation :

Non-Executive Director

Qualification :

Law graduate from the University of Bombay and has a post-graduate degree in Economics from the Delhi School of Economics

 

 

Name :

Dr. Sanjiv Misra

Designation :

Non-Executive Director

Date of Birth/ Age:

67 Years

 

MPA and PhD

Date of Appointment :

14.05.2010

 

 

Name :

Mr Arvind Uppal

Designation :

Non-Executive Director

Qualification :

Chemical Engineer from IIT, Delhi and a Masters in Business Administration from the Faculty of Management Studies, New Delhi

 

 

KEY EXECUTIVES

 

Name :

Mr H Agarwal

Designation :

Chief Financial Officer

 

 

Name :

Mr R Guha

Designation :

Company Secretary / Chief Internal Auditor

 

 

Audit Committee :

·         Ms. R S Karnad (Chairperson)

·         Mr. R Gopalakrishnan

·         Mr. A Jain

·         Mr. R S Kapur

·         Mr. R Molenaar

·         Dr. S Misra

·         Mr. A Uppal

 

 

Nomination and Remuneration Committee :

·         Mr. R Gopalakrishnan (Chairman)

·         Mr. A Jain

·         Ms. R S Karnad

·         Mr. R S Kapur

·         Mr. N Kaviratne CBE

·         Dr. S Misra

·         Mr. A Uppal

 

 

Stakeholders Relationship Committee :

·         Dr. S Misra (Chairman)

·         Mr. Jayakumar K

·         Mr. H Agarwal

 

 

CSR Committee :

·         Mr. R S Kapur – Chairman

·         Mr. Jayakumar K

·         Mr. H Agarwal

 

 

 

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2014

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

As a % of (A+B)

(A) Shareholding of Promoter and Promoter Group

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

 

 

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

 

 

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

34044335

72.96

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

34044335

72.96

Total shareholding of Promoter and Promoter Group (A)

34044335

72.96

(B) Public Shareholding

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

 

 

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

1895915

4.06

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

24730

0.05

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

276

0.00

http://www.bseindia.com/include/images/clear.gifInsurance Companies

2196452

4.71

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

849581

1.82

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

600

0.00

http://www.bseindia.com/include/images/clear.gifForeign Financial Institutions

600

0.00

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

4967554

10.65

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

 

 

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

3355268

7.19

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

3866040

8.29

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

250725

0.54

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

176392

0.38

http://www.bseindia.com/include/images/clear.gifClearing Members

26426

0.06

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

101997

0.22

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

18773

0.04

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

1048

0.00

http://www.bseindia.com/include/images/clear.gifUnclaimed Suspense A/c

24973

0.05

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

3175

0.01

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

7648425

16.39

Total Public shareholding (B)

12615979

27.04

Total (A)+(B)

46660314

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)

46660314

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Paints.

 

 

Products :

Item Code No. (ITC Code)

Product Description

3209

Emulsion Paints

3506

Adhesives

3812

Rubber Chemicals

3408

Synthetic Enamels

3906

Polymers

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

 

Selling :

Not Available

 

 

Purchasing :

Not Available

 

 

PRODUCTION STATUS: Not Available

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

Customers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

No. of Employees :

1854 (Approximately)

 

 

Bankers :

·         Citibank

·         Deutsche Bank

·         HDFC Bank Limited

·         Hongkong and Shanghai Banking Corporation

·         Royal Bank of Scotland

·         Standard Chartered Bank

·         State Bank of India

 

 

Auditors :

 

Name :

BSR and Associates

Chartered Accountants

Address:

Building No. 10, 8th Floor, Tower-B, DLF Cyber City, Phase II, Gurgaon - 122002, Haryana, India

Tel No.:

91-124-2549191

Fax No.:

91-124-2549101

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Company:

Imperial Chemical Industries Limited, England (holding company upto 3 June 2012 and related party having significant influence thereafter)

 

 

Ultimate Holding Company:

Akzo Nobel N.V., Netherlands

 

 

Fellow subsidiaries :

·         Akzo Nobel Amides Company, Limited

·         Akzo Nobel Paints Lanka (Private) Limited

·         Akzo Nobel Car Refinishes Indonesia

·         Akzo Nobel Paints Taiwan Limited

·         Akzo Nobel Chang Cheng Limited

·         Akzo Nobel Paints Vietnam Limited

·         Akzo Nobel China Investment Company Limited

·         Akzo Nobel Polymer Chemicals (Ningbo) Company, Limited

·         Akzo Nobel Decorative Coatings B.V.

·         Akzo Nobel Polymer Chemicals B.V.

·         Akzo Nobel Functional Chemicals bv

·         Akzo Nobel Polymer Chemicals LLC

·         Akzo Nobel Ltda-Divisao Titas EM PO

·         Akzo Nobel Powder Coatings (Ningbo) Company, Limited

·         Akzo Nobel Powder Coatings SAS

·         Akzo Nobel Powder Coatings B.V.

·         Akzo Nobel Pulp and Performance Chemicals AB

·         Akzo Nobel Powder Coatings Korea Company, Limited

·         Akzo Nobel REP Off BV

·         Akzo Nobel Powder Coatings S.A.E.

·         Akzo Nobel (Shanghai) Company Limited

·         Akzo Nobel Powder Coatings South Africa Pty Limited

·         Akzo Nobel Argentina S.A.

·         Akzo Nobel Pty. Limited

·         Akzo Nobel Asia Pte. Limited

·         Akzo Nobel Surface Chemistry AB

·         Akzo Nobel Boya Sanayi ve Ticaret A.S.

·         Akzo Nobel Surface Chemistry L.L.C.

·         Akzo Nobel Car Refinishes (Singapore) Pte Limited

·         Akzo Nobel UAE Paints L.L.C.

·         Akzo Nobel Car Refinishes (Suzhou) Company Limited AkzoNobel Paints Singapore Pte Limited

·         Akzo Nobel Car Refinishes Australia Pty Limited

·         EKA Chemicals AB

·         Akzo Nobel Car Refinishes B.V.

·         ICI (Malaysia) Holdings Sdn Bhd

·         Akzo Nobel Car Refinishes SL

·         ICI Dulux (Pty) Limited

·         Akzo Nobel Chang Cheng Coatings (Guangdong) Company, Limited

·         ICI India Research and Technology Centre

·         Akzo Nobel Chemicals AG

·         International Paint - Finland

·         Akzo Nobel Chemicals International B.V.

·         International Paint - Vietnam

·         Akzo Nobel Coatings (Dongguan) Company Limited

·         International Paint Japan K.K.

·         Akzo Nobel Coatings (Jiaxing) Company Limited

·         International Paint Limited

·         Akzo Nobel Coatings (Tianjin) Company, Limited

·         International Paint Ltda

·         Akzo Nobel Coatings CZ, a.s.

·         International Paint - Ukraine

·         Akzo Nobel Coatings GmbH

·         International Farbenwerke GmbH

·         Akzo Nobel Coatings Inc.

·         International Färg AB

·         Akzo Nobel Coatings International B.V.

·         International Maling A/S

·         Akzo Nobel Coatings Limited

·         International Paint (Akzo Nobel Chile) Ltda

·         Akzo Nobel Coatings S.P.A.

·         International Paint (Hong Kong) Limited

·         Akzo Nobel Coatings Sdn Bhd

·         International Paint (Korea) Limited

·         Akzo Nobel Cross-Linking Peroxides (Ningbo) Company Limited

·         International Paint (Nederland) B.V.

·         Akzo Nobel Decorative Coatings B.V.

·         International Paint (Panama) Inc.

·         Akzo Nobel Decorative Paints France S.A.

·         International Paint (Taiwan) Limited

·         Akzo Nobel Functional Chemicals AB

·         International Paint Limited

·         Akzo Nobel Industrial Finishes (Hong Kong) Limited

·         International Paint LLC

·         Akzo Nobel Industrial Paints, S.L.

·         International Paint of Shanghai Co Limited

·         Akzo Nobel International Paint (Suzhou) Company Limited

·         International Paint Pazarlama Limited Sirketi

·         Akzo Nobel Ltda

·         International Paint Sdn Bhd

·         Akzo Nobel N.V.

·         International Paint Singapore Pte Limited

·         Akzo Nobel Packaging Coatings GmbH

·         International Peinture S.A.

·         Akzo Nobel Packaging Coatings Limited

·         IP Singapore Pte -Vietnam

·         Akzo Nobel Packaging Coatings S.A.

·         Keum Jung Akzo Nobel Peroxides Limited

·         Akzo Nobel Packaging Coatings S.A.S

·         Pinturas Inca S.A.

·         Akzo Nobel Paints (Asia Pacific) Pte Limited

·         PT International Paint Indonesia

·         Akzo Nobel Paints (Malaysia) Sdn. Bhd.

·         Shanghai ICI Research and Development and Management Company Limited

·         Akzo Nobel Paints (Thailand) Limited

·         Tianjin Akzo Nobel Peroxides Company Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

126690000

Equity Shares

Rs.10/- each

Rs.1267.000 Million

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

46660314

Equity Shares

Rs.10/- each

Rs.467.000 Million

 

 

 

 

 

FOOT NOTES:

 

(i) In 2011-12, 21,967,544 shares were held by Imperial Chemical Industries Limited, England, the holding Company. Imperial Chemical Industries Limited, England ceased to be the holding company with effect from 4 June 2012 on allotment of new shares as per a scheme of amalgamation (Refer to note 2). The ultimate holding company is Akzo Nobel N.V., Netherlands (‘the Promoter Group’), which does not hold any shares directly in the Company.

 

(ii) Reconciliation of equity shares outstanding at the beginning and at the end of the year:

 

PARTICULARS

31 March 2014

 

Numbers

R. In Million

Opening balance

46,660,314

466.603

Add: Shares allotted on amalgamation

--

--

Less: Buy back of shares

--

--

 

46,660,314

466.603

 

 

In 2011-12, 11,125,983 shares of Rs. 10 each were alloted in accordance with a scheme of amalgamation, and pending such allotment were disclosed as “Share capital pending allotment “ in the balance sheet.

 

(iii) During the previous year, 1,300,000 equity shares were bought back at a consideration of Rs. 1,209 million (including related expenses of Rs. 13 million), in terms of the shares buy back scheme open between 2 July to 13 July 2012.

 

This was accounted as below:

 

- The nominal value of shares bought back, i.e., Rs. 13 million, was adjusted against the share capital. An equal amount was reduced from General reserve and credited to Capital Redemption Reserve, as per the provision of the Companies Act, 1956. The difference aggregating to Rs. 1,196 million between the consideration paid and the nominal value of shares was adjusted against the General Reserve.

 

All shares bought back were extinguished during that year. The Promoter Group had further acquired 1.01 million shares in the Company on 31st July 2012. As a result of the above share buyback and their extinguishment and also of further acquisition of shares by the Promoter Group, its share holding in the company went up from 68.88% to 72.96%.

 

(iv) The Company has only one class of equity shares, having a par value of Rs. 10 per share. Each shareholder is eligible to one vote per share held. The Company declares and pays dividend in Indian Rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regualtion. In the event of liquidation, normally, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

 

 

(v) Shares in the Company held by each shareholder holding more than 5% of equity share capital:

 

PARTICULARS

31.03.2014

 

 

No. of shares

% of shares held

Imperial Chemical Industries Limited, England

22,977,544

49.24%

Akzo Nobel Coatings International B.V., The Netherlands

8,626,648

18.49%

Akzo Nobel Chemicals International B.V., The Netherlands

2,439,847

5.23%

 

(vi) Number of equity shares of Rs. 10 each bought back in the five years immediately preceding the Balance Sheet date, aggregates to 5,336,281 (2012-13: 53,36,281)

 

 

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

467.000

467.000

368.000

(b) Reserves & Surplus

8011.000

10586.000

13931.000

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

111.000

Total Shareholders’ Funds (1) + (2)

8478.000

11053.000

14410.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

121.000

47.000

26.000

(c) Other long term liabilities

143.000

190.000

191.000

(d) long-term provisions

674.000

618.000

629.000

Total Non-current Liabilities (3)

938.000

855.000

846.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

4926.000

4785.000

4161.000

(c) Other current liabilities

1175.000

1171.000

906.000

(d) Short-term provisions

4872.000

5188.000

1757.000

Total Current Liabilities (4)

10973.000

11144.000

6824.000

 

 

 

 

TOTAL

20389.000

23052.000

22080.000

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

5025.000

3548.000

3563.000

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

306.000

1057.000

148.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

500.000

2700.000

850.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

1032.000

901.000

1188.000

(e) Other Non-current assets

18.000

16.000

4.000

Total Non-Current Assets

6881.000

8222.000

5753.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

5786.000

6772.000

9185.000

(b) Inventories

3242.000

3149.000

3334.000

(c) Trade receivables

3076.000

2516.000

2260.000

(d) Cash and cash equivalents

722.000

857.000

739.000

(e) Short-term loans and advances

514.000

1291.000

543.000

(f) Other current assets

168.000

245.000

266.000

Total Current Assets

13508.000

14830.000

16327.000

 

 

 

 

TOTAL

20389.000

23052.000

22080.000

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

23717.000

21797.000

19425.000

 

 

Service Income

279.000

332.000

260.000

 

 

Other Operating Income

183.000

191.000

193.000

 

 

Other Income

567.000

1381.000

1123.000

 

 

TOTAL                                     (A)

24746.000

23701.000

21001.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

11726.000

10845.000

10126.000

 

 

Purchase of stock-in-trade

2204.000

1990.000

1868.000

 

 

Employee benefits expense

1939.000

1753.000

1473.000

 

 

Other expenses

6537.000

5727.000

5269.000

 

 

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

(146.000)

120.000

 

 

(604.000)

 

 

 

 

TOTAL                                     (B)

22260.000

20435.000

18132.000

 

 

 

 

 

 

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

2486.000

3266.000

2869.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

15.000

89.000

39.000

 

 

 

 

 

 

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

2471.000

3177.000

2830.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

437.000

386.000

 

366.000

 

 

 

 

 

 

 

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

2034.000

2791.000

2464.000

 

 

 

 

 

Less

TAX                                                                  (H)

532.000

603.000

446.000

 

 

 

 

 

 

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

1502.000

2188.000

2018.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

5015.000

8214.000

6276.000

 

 

 

 

 

Add

ACQUIRED ON AMALGAMATION

--

--

2075.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to general reserve

660.000

1050.000

1040.000

 

 

Proposed Dividend

3499.000

3733.000

959.000

 

 

Tax on Dividend

595.000

634.000

156.000

 

 

Provision for dividend no longer required written back

0.000

26.000

0.000

 

 

Provision for dividend tax no longer required written back

0.000

4.000

0.000

 

BALANCE CARRIED TO THE B/S

1763.000

5015.000

8214.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods (FOB basis)

734.000

593.000

444.000

 

 

Reimbursement of expenses

34.000

43.000

50.000

 

 

Service income

274.000

260.000

215.000

 

 

Others

26.000

11.000

13.000

 

TOTAL EARNINGS

1068.000

907.000

722.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

3114.000

2722.000

2933.000

 

 

Components and Spare Parts

9.000

12.000

58.000

 

 

Capital Goods

29.000

78.000

50.000

 

TOTAL IMPORTS

 

2812.000

3041.000

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

32.18

46.49

42.08

 

 

QUARTERLY RESULTS

 

Particulars

Jun 2014

Sep 2014

Dec 2014

Audited / Un Audited

Un Audited

Un Audited

Un Audited

Net Sales

6411.000

6067.100

6870.200

Total Expenditure

5746.200

5536.300

6066.400

PBIDT (Excl OI)

664.800

530.800

803.800

Other Income

291.700

154.200

67.800

Operating Profit

956.500

685.000

871.600

Interest

0.630

4.100

3.000

Exceptional Items

2.670

0.000

0.000

PBDT

976.900

680.900

868.600

Depreciation

133.100

127.100

128.600

Profit Before Tax

843.800

553.800

740.000

Tax

292.000

196.300

232.600

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

551.800

357.500

507.400

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

55.1800

357.500

507.400

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

6.33

10.04

10.39

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

10.48

14.98

14.77

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

10.39

14.46

11.69

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.24

0.25

0.17

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.23

1.33

2.39

 

 

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

368.000

467.000

467.000

Reserves & Surplus

13931.000

10586.000

8011.000

Share Application money pending allotment

111.000

0.000

0.000

Net worth

14410.000

11053.000

8478.000

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

0.000

0.000

0.000

Total borrowings

0.000

0.000

0.000

Debt/Equity ratio

0.000

0.000

0.000

 

 

 

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

19425.000

21797.000

23717.000

 

 

12.211

8.809

 

 

 

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

19425.000

21797.000

23717.000

Profit

2018.000

2188.000

1502.000

 

10.39%

10.04%

6.33%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

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

 

CALCUTTA HIGH COURT


CASE STATUS INFORMATION SYSTEM

 

Case Status     :   Pending

 

Status of          INCOME TAX APPEAL TENDERED            100     of      2013     

 

COMMISSIONER OF INCOME TAX, KOLKATA - IV                  Vs.                  AKZO NOBEL INDIA LIMITED (FORMERLY KNOWN) 

 

Pet's Adv.        :   S S SARKAR

 

Res's Adv.      :       

Court No.        :  6                  Last Listed On :  Wednesday, August 14, 2013     

Category         :   INCOME TAX : REVENUE

 

CONNECTED APPLICATION (S)

CONNECTED MATTER (S)

No Connected Application

No Connected Matter

 

Case Updated on:   Thursday, August 08, 2013

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

90199062

04/01/2002 *

71,000,000.00

DEUTSCHE BANK AG

BANGALORE BRANCH, RAHEJA TOWER; NO.26-27; M.G. ROAD, BANGALORE, KARNATAKA, INDIA

-

2

90197288

04/01/2002 *

710,000,000.00

DEUTSCHE BANK

BANGALORE BRANCH M.G. ROAD, BANGALORE, KARNATAKA - 
560001, INDIA

-

 

* Date of charge modification

 

 

BUSINESS ENVIRONMENT

 

Indian economy faced another year of strong headwinds both from global factors and domestic issues. GDP growth in fiscal year 2013-14 is estimated at around 5% (previous year 4.5%). Overall industrial activity slowed down with the Index of Industrial production (IIP) reflecting a marginal de-growth in 2013-14 compared to a growth of 1% in the previous year and 3% in the earlier year (2011-12).

 

The year also saw significant volatility in foreign exchange rates in mid-2013 which impacted business profitability; certain strong exchange control measures were taken by RBI during that period, some of which have since been rolled back. On the positive side, the Companies Act, 2013 has replaced the Companies Act, 1956 with several provisions to protect investor interests, especially minority shareholders, improving governance standards and mandating corporate participation in CSR etc.

 

 

FINANCE AND ACCOUNTS

 

Revenue for the year at Rs. 24179.000 Million is 8% ahead of previous year, with contribution from all segments. EBITDA from business operations at Rs. 1,919 million grew marginally ahead of previous year; however, profit after tax for the year at Rs. 1502.000 Million declined compared to previous year’s Rs. 2188.000 Million mainly on account of lower income from investments and certain non-recurring income included in the previous year’s results.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE

 

The Indian Coatings industry has been growing over past several years at a rate well ahead of the country’s GDP growth. The industry has two main sub-segments: Decorative Paints and Performance Coatings, comprising Protective, Powder, Marine, Auto and Coatings for specialized applications and is served by both organised and unorganised sectors.

 

Decorative Paints account for approx 70% of the industry. The main drivers for the growth of this business have been consumers’ shift to premium products, shortening of repainting cycle and better demand from Tier II and Tier III cities. Another important driver for demand for Decorative paints is the new homes underpinned by rising income levels, easy availability of finance for housing, shift from joint families to nuclear families and rapid urbanisation.

 

Performance Coatings business, which constitutes nearly 30 per cent of the Coatings market in India, is essentially a B2B market in contrast to the Decorative paints, which is largely B2C market. This business is technology intensive with a diverse set of growth drivers, which include key customer relationships, sustained focus on R&D and Innovation and strong emphasis on selling a solution rather than a product.

 

 

BUSINESS PERFORMANCE

 

COATINGS

 

Coatings segment recorded a total revenue of Rs. 23242.000 Million during the year 2013-14, compared to the previous year’s Rs. 21426.000 Million, a growth of 8.5%. Segment profit however declined to Rs. 1473.000 Million, reflecting impact of rupee depreciation during the year and general slow-down in the economy. Despite tough market conditions, the Company continued to pursue its long term objectives through investment in strengthening the brands, developing new markets, capability building and capacity expansion.

 

 

DECORATIVE PAINTS

 

Some of the initiatives which supported the growth were:

 

• Introduction of Weather shield Next Generation for professional users;

• Reinforcing Sun reflect proposition through Weather shield Sunreflect campaign;

• Introduction of Fabrique Moment - new range of inspired finishes under Velvet touch Trends umbrella.

• Launch of VT - Fashion for Walls and communication restage for WS Max.

• Expansion of Distributor based servicing of hitherto underserved markets.

• The business has started its operations to service the Bangladesh market during the year by appointing a selling agent in that country.

 

 

PERFORMANCE COATINGS

 

Automotive and Aerospace Coatings

 

The highlights of the business for 2013-2014 were the launch of:

 

• ‘Duco Auto-Star’ for the mid-market segment,

• Bodyguard project, which is an integrated solution for strategic partnership with top insurance companies and

• Color Helpdesk.

 

Marine Coatings business focuses on coatings solutions for ships, trawlers, supply vessels and coastal fishing boats. The business provides comprehensive coatings solutions to new ship construction as well as maintenance and repair. The business is battling a general slowdown in the shipping industry with pressures on both volumes and margins. Initiatives to expand into new avenues to propel growth as well as de-risking were continued.

 

Protective Coatings business provides coatings solutions to segments like oil and gas, public infrastructure projects such as airports and stadia, power generation, mining and minerals, etc. Though the overall market for protective coatings faced several challenges, there are indications of revival of demand in the industry. During the

year the business introduced Enviroline series of products, Interthane 138HS - a low cost high solid PU finish and “Intertuf” a surface and sea water tolerant epoxy primer.

 

Industrial Coil Coatings business continued its growth momentum and has implemented several initiatives to improve its market position. The year saw new product launches and better price realization in select product lines. Polydure®1000 RAL9010 - a food safe coating, was launched during the year. Concerted efforts to secure product approvals from potential customers are on hand.

 

Powder Coating business, which caters mainly to white goods, automotive and general industry, registered a healthy topline growth. New initiatives to apply Powder coating technology to the Auto-Body sector are being pursued. A low bake powder coating in Genset Canopy market was successfully commercialized during the year. New opportunities with OEMs of Tractors and Light commercial vehicles and Architectural coatings are being explored.

 

Packaging Coating business, hitherto being run as an ‘import and sell’ operation, is in the process of setting up a local manufacturing facility to cater to the growing Indian market in a cost effective manner.

 

 

CHEMICALS

 

This segment consisting of Functional Chemicals and Surface Chemistry businesses recorded a turnover of Rs. 936.000 Million compared to the previous year’s Rs. 894.000 Million, a growth of 5%. Segment profit, however, declined to Rs. 103.000 Million mainly due to fall in product prices and adverse product mix. A specialized Lab to cater to the Surface Chemistry requirements of the Agrochemical industry is being set up at the Thane site. Opportunities to source some products locally using AkzoNobel’s technologies are under evaluation.

 

Going forward, the Company will continue to closely  monitor the global trends in the availability and price movements of all key inputs and shall strive to safeguard its supply lines. Cost reduction and value enhancement projects are also being pursued to counter inflation/ ensure supply security. However, volatility in currency exchange rates could negate the effects of some of the above actions and put pressure on margins. The Company follows a Risk Management policy under which all material foreign currency exposures are hedged through forward covers, to protect against swings in exchange rates.

 

The Company will continue to stay focused on growing ahead of the market, with emphasis on serving its consumers through superior technical inputs and solutions and continuous efforts to expand footprint in its areas of strength.

 

 

 

 

 

 

 

CONTINGENT LIABILITIES:

 

PARTICULARS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

(a) Claims against the Company not acknowledged as debts

50.000

50.000

(b) Sales tax matters under appeal

188.000

215.000

(c) Excise matters in dispute / under appeal

88.000

88.000

(d) Industrial relations and other matters under dispute

2.000

2.000

(e) Bank guarantees ( third parties, etc.)

--

--

(f) Income tax matters in dispute / under appeal *

 

 

 

NOTE

 

* The Income tax assessments for the Company have been completed upto the financial year ended 31 March 2010. Arising from such assessments and appellate orders, the demands aggregate Rs. 1309.000 Million (2012-13 : Rs. 1166.000 Million), and the refunds aggregate Rs. NIL (2012-13 : Rs. 1186.000 Million). The Company as well as the Income tax department have filed appeals on these matters. Pending decisions in the appeals, neither the refunds nor the liabilities for the demands have been recognised in the accounts. The Company, based on its assessment of such cases, is of the view that the final outcome is not likely to have significant adverse impact on the financial statements.

 

 

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

PART I

 

(Rs. In Million)

Particulars

Quarter Ended

Year to date for nine month ended

31.12.2014

30.09.2014

31.12.2014

(Unaudited)

(Unaudited)

(Unaudited)

1 Income from operations

 

 

 

(a) Net sales (net of excise duty)

6714.100

5926.900

18920.300

(b) Other operating income

156.100

140.200

428.000

Total income from operations (net)

6870.200

6067.100

19348.300

 

 

 

 

2 Expenses

 

 

 

(a) Cost of materials consumed

2695.100

3377.200

9153.900

(b) Purchase of stock-in-trade

508.400

610.900

1626.000

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

653.000

(584.300)

147.900

(d) Employee benefits expense

495.000

478.200

1482.700

(e) Depreciation and amortisation expense

128.600

127.100

388.800

(f) Other expenses

1714.900

1654.300

4938.400

Total expenses

6195.000

5663.400

17737.700

3 Profit from operations before other income, finance costs and

exceptional items (1-2)

675.200

403.700

1610.600

4 Other Income

67.800

154.200

513.700

5 Profit from ordinary activities before finance costs and

exceptional items (3+4)

743.000

557.900

2124.300

6 Finance cost

3.000

4.100

13.400

7 Profit from ordinary activities after finance costs but before

exceptional Items (5-6)

740.000

553.800

2110.900

8 Exceptional Items -income

0.000

0.000

26.700

9 Profit from ordinary activities before tax (7+8)

740.000

553.800

2137.600

10 Tax expense

232.600

196.300

720.900

11 Net profit from ordinary activities after tax (9-10)

507.400

357.500

1416.700

12 Paid - up equity share capital (ordinary shares of Rs 10/- each)

466.600

466.600

466.600

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

 

 

 

14 Basic and diluted Earnings per share (of Rs. 10 each) (not

annualised)

10.87

7.66

30.36

 

 

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

 

Part II

(Rs. In Million)

 

31.12.2014

30.09.2014

A PARTICULARS OF SHAREHOLDING

 

 

1 Public shareholding

 

 

- Number of Shares

12615979

12615979

- Percentage of shareholding

27.04%

27.04%

 

 

 

2 Promoter and Promoter Group Shareholding

 

 

a) Pledged/ Encumbered

 

 

- Number of shares

--

--

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

--

--

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

--

--

 

 

 

b) Non-encumbered

 

 

- Number of shares

34044335

34044335

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

100%

100%

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

72.96%

72.96%

 

 

B PARTICULARS OF INVESTOR COMPLAINTS (Nos.)

Quarter ended

31.12.2014

 

 

Pending at the beginning of the quarter

--

Received during the quarter

2

disposed of during the quarter

2

Remaining unresolved at the end of the quarter

--

 

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED AND NINE MONTHS ENDED 31 DECEMBER 2014

 

Particulars

Quarter Ended

Year to date for NINE month ended

31.12.2014

(Unaudited)

30.09.2014

(Unaudited)

31.12.2014 (Unaudited)

1 Segment Revenue

 

 

 

a) Coatings

3566.600

5814.700

18518.100

b) Others

303.600

252.400

830.200

Total income from operations (net)

6870.200

6067.100

19348.300

 

 

 

 

2 Segment Results [Profit before interest and tax from each segment]

 

 

 

a) Coatings

680.700

400.700

1611.200

b) Others

14.300

32.100

75.600

Total

695.000

432.800

1686.800

 

 

 

 

Finance Cost

3.000

4.100

13.400

Other Unallocated Income /(Expenditure)

48.000

125.100

437.500

 

740.000

553.800

2110.900

 

 

 

 

Exceptional items - income

--

--

26.700

Total Profit before Tax

740.000

553.800

2137.600

 

 

 

 

3. Capital Employed

 

 

 

(Segment Assets – Segment Liabilities)

 

 

 

-       Coating

 

 

6870.700

-       Other

 

 

737.700

Unallocated

 

 

2269.300

Total Capital Employed in Segment

 

 

9872.700

 

 

Note:

 

- Segment Revenue, Results and Capital Employed figures include the respective amounts identifiable to each of the segments. Other un-allocable items in segment results include income from investment of surplus funds of the Company and unallocable corporate expenses.

 

-''Unallocated' in Capital Employed includes un-allocable corporate assets, liabilities and investments.

 

 

Note:

 

1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 29 January 2015.

2. The Statutory Auditors of the Company have reviewed the financial results for the quarter and nine months ended 31 December 2014. An unqualified report has been issued and the same is being filed with the Bombay and National Stock Exchanges, which is also available on the Company website- www.akzonobel.com/in.

3. During the quarter ended 30 June 2014, according to Schedule II of the Companies Act, 2013, the Company based on an internal evaluation had reassessed the remaining estimated useful life of fixed assets, with effect from 1 April 2014. Accordingly, the useful life of certain assets required a change from the previous estimates. Had the Company continued with the previously assessed useful lives, depreciation charge for the quarter and nine months ended 31 December 2014 would have been lower by Rs. 4.400 million and Rs. 18.900 million respectively and the Reserves and Surplus as on 31 December 2014 would have been higher by Rs. 18.900 million. Further, based on transitional provision provided in note no. 7 (b) of Schedule II, an amount of Rs. 21.200 million (net of deferred taxes) has been adjusted against retained earnings as at 1 April 2014,


4. Consequent on receipt of provisional approval from authorities, the Company during the quarter ended 30 June 2014 had re-assessed the provision with regard to liability on Sales of Catalyst business and the net impact has been disclosed as an exceptional item. The tax impact of the transfer is being evaluated by the management and will be recognised in the period in which the transfer is consummated.


5. During the quarter ended 30 June 2014, the Company had paid Commission amounting to Rs. 3.600 million to its Non- Executive Directors for the year ended 31 March 2014, which has been approved by the shareholders at the Annual General Meeting held on 11 August 2014.


6. Previous year/ period figures have been regrouped/ reclassified, wherever necessary, to make them comparable to the current year/ period figures.

 

 

FIXED ASSETS

 

Tangible Assets

·         Land

·         Buildings

·         Plant and Machinery

·         Motor Vehicles, etc.

·         Furniture and Fixtures

·         Office Equipments

·         Leasehold Improvements

·         Data processing Equipment

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

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

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.58

UK Pound

1

Rs. 97.99

Euro

1

Rs. 70.53

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TRU

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILITY

1~10

8

--LIQUIDITY

1~10

7

--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

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

 

68

 

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

 

--

 

 

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.