MIRA
INFORM REPORT
|
Report Date : |
24th
June, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
COCO
FLORA |
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Registered Office : |
Karappadi,
Poosari Patti Post, Pollachi – 642 205, Tamilnadu, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
2000 |
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Com. Reg. No.: |
TNGST-662475/11.1.2002
CST
98422/11.1.2002 |
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Legal Form : |
Sole
Proprietory Concern |
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Line of Business : |
Manufacturer
and Exporter of Grow Bags, Coco Peat, Coir Blocks, Nursery Bags, Cut Fibre,
Husk chips |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
100000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well – established concern having satisfactory track records. Trade
relations are fair. General financial position is satisfactory. Payments are
usually correct and as per commitments. The
concern can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
B / 33
Karappadi, Poosari Patti Post, Pollachi – 642205, Tamilnadu. |
|
Tel. No.: |
91-4259-266252 |
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Mobile No.: |
91-9442920502/9842250990 |
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Fax No.: |
91-422-2214157 |
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E-Mail : |
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Website : |
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Area: |
2600
sq. ft. |
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Location: |
Owned |
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Factory: |
3/40,
Karappadi, Pollachi – 642205, Tamilnadu |
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Mobile No.: |
91-9442920501 |
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Area: |
8000
sq. ft. |
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Location: |
Owned |
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|
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Administrative
Office : |
At Coimbatore |
SOLE PROPRIETOR
|
Name : |
Mr.
Satish Chandran |
|
Designation : |
Proprietor |
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Address: |
3/88,
Karappadi, Poosari Patti Post, Pollachi – 642205, District Coimbatore ,
Tamilnadu, India. |
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Date of Birth/Age : |
33
Years |
|
Qualification : |
BBM,
PGDFS, PGSA (U.K) |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
and Exporter of Grow Bags, Coco Peat, Coir Blocks, Nursery Bags, Cut Fibre,
Husk chips |
|
|
|
|
Products : |
Grow
Bags Coco
Peat |
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|
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Brand Names : |
COCO
FLORA |
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Agencies Held : |
v
CODISSIA
MEMBER (Coimbatore District, Small Industries / Association) v
Coirpith
Manufacturer of Exporter Association of Security.
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Exports to : |
Dubai
and U.S.A |
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Terms : |
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Selling : |
Cash |
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Purchasing : |
Cash |
PRODUCTION
STATUS
|
Particulars |
Installed Capacity |
Actual Production |
|
Coco Peat Blocks |
800 tons |
125 – 150 tons |
|
Coco Peat Grow Bags |
100 tons |
50 tons |
|
Husk chips of Cuf Fibre |
100 tons |
50 tons |
GENERAL
INFORMATION
|
Customers : |
Wholesaler
and End Users |
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|
|
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No. of Employees : |
33 |
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|
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Bankers : |
v
State
Bank of India, Pollachi Branch v
Corporation
Bank, Coimbatore Branch v
ICICI
Bank, Pollachi Credit Limit: Rs. 0.500 Millions |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory
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Auditors : |
Mr.
Giriraj |
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Address: |
Rajamill
Road, Pollachi |
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Tel. No.: |
91-4259-266513 |
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|
|
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Sister Concern : |
Hasmitha
Fibres |
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Address: |
Karappadi,
Poosari Patti (Post), Pollachi – 642205, Tamilnadu, India. |
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Line of Business: |
Cuf
Fibre, Husk Chips |
CAPITAL STRUCTURE
|
Capital
Investment : |
|
|
Owned : |
Rs.
25.000 Millions |
|
Borrowed : |
Rs.
2.500 Millions |
|
Total : |
Rs.
27.500 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
|
Particulars |
|
|
31.03.2005 |
|
Sales Turnover |
|
|
1.000 |
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|
|
|
|
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Profit/Loss for the year |
|
|
0.700 |
LOCAL AGENCY
FURTHER INFORMATION
TRADE
REFERENCES:
CODISSIA PRESIDENT, Mr. J. Balu, 50 A. T. T. Colony, Coimbatore – 641
018, Tamilnadu, India.
They
have their admin office at Coimbatore at the residence of Mr. Satiish
Viswanathan one of the partners.
Coco Flora is one of the leading
manufacturers and exporters of environmentally safe Cocopeat Grow Bags, Cocopeat Blocks and other coir
based products in India, COCO FLORA'S
Cocopeat is a soil substitute which is economical, bio-degradable, 100% organic
enriching agent. It is an alternative to Peatmoss, Perlite and Rockwool. They
are nature’s perfect soil amendment gifted to us by the coconut tree.
COCO FLORA'S Cocopeat
is the best ‘growing medium’ used for varied applications like Horticulture,
Floriculture, Hydroponics, Greenhouses, Landscapes, Golf courses, Horse barn,
Cattle barn and pig sty and other animal shelters.
They specialize in Growbags
with high production rate, comparable with world standards. They implement new
methods, techniques, stringent quality
control and safety standard measures to step ahead in producing
world-class cocopeat products.
Profile:
Coco Flora is managed by family run
professionals who have vast experience as growers of coconut plantations,
suppliers of coconut husk to coir industries and as manufacturers of high
quality Cocopeat products. They are located
at Karappadi, Pollachi
an hour’s drive from Coimbatore,
the heart of the coconut plantations in Southern
India.A member of our administrative team is a management
professional from University of Wales, UK and is supported by very experienced
technicians trained in choosing the best material substrate for Hydroponics
cultivation. Their employees are literate and they do not employ child labour.
Coco Flora’s Grow bag product is an organic
enriching agent and can be reused after cultivation. Other uses of the fluffy
material can be envisaged in horticulture. When reusing, care should be taken
to remove the Polyethylene bag.
Coco Flora has the capacity to produce
tonnes of Cocopeat per month, as there are numerous fiber mills that are of close
proximity to the factory and provides a continuous supply of raw material. Coco
Flora’s Coco peat is the most economical, and the best growing medium for
almost every agricultural, horticultural, floriculture crop, both indoors and
outdoors.
They would like to establish long-term,
mutually benefiting joint ventures with international companies that are
mushrooming in the Cocopeat field.
They offer detailed project reports to interested overseas companies right from
Plant Layout, Machine Technology, Country of Investment
and Brand Positioning the product in the global market place. The customer is
given complete training and full fledged knowledge of the whole process. All
the requirements of the customer are fulfilled by their technical professionals.
They take great pleasure in welcoming
all interested foreign companies
in joint ventures with
us. They will continue to maintain their well-earned reputation and sustain
Coco Flora at the forefront of the industry by meeting the needs of their
customers with product service and quality assurance.
Products
15 kg Blocks :
When 15kg blocks are laid in cattle barn, horse barn and pig sty, the waste
generated by these animals gets mixed with the Cocopeat over a period of time,
thereby making the material fluffy and moist. This is then converted into rich
organic manure. This can also be used as Farm Yard Manure (FYM) when mixed with
fertilizers and are also used for waste disposal purposes.
Specifications :
15 kg Blocks
size : 98 × 36 × 10cm
Weight : 14-15kgs
No of liters : 150-160 liters
Moisture : 18% - 20%
EC.Content : different levels possible
Packing Content : Naked Blocks
1700
blocks 1 x 40 foot container
Applications : Animal Shelters, Horse &
Cattle Barn, Fields and Large Scale Nurseries.
Cocopeat Grow Bags
:
It is a Premier product used for Hydroponics cultivation to grow various types
of fruits like strawberries, vegetables like pepper, cucumbers, tomatoes, bush
variety tomatoes, and flowers like gerberas, gladioli, liliums, anthurium,
roses and many highly demanded seasonal and non-seasonal flowers that have long
greenhouse bench life. It is an alternative to rockwool slabs, peatmoss and
perlite. It is compressed in co-extruded poly sleeves (black inside and white outside).
This is to prevent heat build up in the rootsystem.
SPECIFICATIONS :
Growbag
Size : 98 x 18 x 4.5 cm
Expanded Size : 100 x 20 x 11 cm
Moisture : 18% - 22%
No of Ltrs : 24 Ltrs
Packing : In UV treated Co-Extruded Bags
Quantity : 6000 Bags 1 x 40 Foot HC container
Application : Green house,Hydroponic cultivation.
5 kg Blocks :'
These blocks are best used in large-scale nurseries, garden centers,
large-scale commercial growers of flowers and fruits. They can be also loaded
in ‘naked’ form. The absence of plastic shrink means less disposal work making
it convenient for the buyer. Shrink wrapped blocks can also be given on
request.
Specifications:
5 Kg Block
Size : 32 x 36 x 12cm or 30 x 30 x 12cm
Weight : 4.5 - 5 Kg
No of liters : 60 - 65 liters
Moisture : 18% - 20%
EC.Content : Different levels possible
Packing/Content
:
Un Wrapped/
Free loading
- 4400 blocks 1 x 40 foot container (22 MT )
- 4800 blocks 1 x 40 foot HC container(24 MT)
Pallitised :
- 4000 blocks 1 x 40 foot container (20 MT)
- 4400 blocks 1 x 40 foot HC container (22 MT)
Applications :
- Open Fields and Large Scale Nurseries.
650 grams Bricks :
650gms bricks are ideal for Home gardens. These are sold in large scale retail
outlets in Europe and the US. They can be hand carried as they are low in
weight. This rectangular brick weighing 650 grams can be either individually
shrink wrapped or can be placed in carton boxes. The brick can be supplied with
or without buyers printed labels. They are excellent for propagation, water
retention, soil aeration and seed germination. These bricks can be used in
potting, seed stating, bulbs and tubers. Method of Preparation: Soak the brick
in a water trough and within minutes you can see the brick absorbing about
8 - 9 liters of water.
SPECIFICATION :
650 Grams Brick
Size : 20 x 10 x 5 cm
Weight : 0.650 grams
No of liters : 8 - 9 liters per brick
Packing : Individually shrink wrapped brick with own labels or
Unwrapped bricks on pallets
Quantity : About 20,000 bricks in 1x20 container
Applications : Potting Media, Retail outlets, and Indoor
use.
1 Kg Block :
One of Coco Flora’s highly-demanded products is the 1 kg block which absorbs
about 11 - 12 liters of water. The 300 gram brick absorbs 4 - 5 liters of
water. These are miniature blocks & bricks available for retail outlets and
home gardens.. They are excellent for propagation, soil aeration and seed
germination, seed stating, bulbs and tubers. They manufacture these bricks only
upon special orders.
SPECIFICATION :
1 Kg Block
Size : 18 x 18 x 10 Cm
Weight : 0.900 grams to 1kg
No of liters : 11-12 Liters
Quantity : About 25000 bricks in 1x40 Foot
HC container
300 Grams Brick
Size : 10 x 10 x 5 cm
Weight : 0.300 grams
No of liters : 4 - 5 liters per brick
Packing : Individually shrink wrapped brick with own labels or
unwrapped bricks on pallets.
Quantity : About 36000 bricks in 1x20 container
Applications : Potting Media, Retail outlets, and Indoor use.
Allied Products :
Coco Logs :
Size : 3 meters & 6 meters long
Applications : Used to control soil erosion near river
beds, ponds, lakes. They are widely used along side streams.
COIR GEO TEX :
Size : 2 meters width & 4 meters width
Applications : Used for erosion control in any slopes.They are 100 % coconut
fiber with degradable thread and provides erosion protection for any slopes and
high flow channels.
Floor Mats – FM
Beach Creel – BC
Caranatic Mats- CM
Rubberised Mats-RM
Hessian Backed Mats – HM
Coco Flora
Manufactures cocopeat grow bags,
cocopeat blocks and other coir based products.
Coco Flora was established in 2002
by Mr. Satish Viswanaathan, CEO, and his father Mr. Viswanaathan. Located at
Karappadi, Pollachi, near Coimbatore, the company manufactures and exports
cocopeat grow bags, cocopeat blocks and other coir based products.
“They have coconut plantations in
Pollachi. They have been growers for the past 95 years,” avers Mr. Satish
Viswanaathan. “When I was in UK and Europe I saw a lot of usage of coir
/cocopeat in nurseries and garden centres. After seeing the usage of coir
related products in those countries, it was my dream to set up this unit in
India,” he adds. Products The company manufactures cocopeat blocks of 15kgs, 10
kgs, 5 kgs, 0.650 gram, bricks and growbags. “They are also manufacturers of
cocopeat machines under the trade name Nova Exporters,” says Mr. Viswanaathan.
“They are also manufactures of coir machines and looms for the paper industry.
They give the technology to the country of investment. We also give support to
these countries in marketing the cocopeat products,” he adds.
The company specializes in grow
bags. Coco Flora’s grow bag product is an organic enriching agent and can be reused
after cultivation. The company claims that the company has the capacity to
produce tonnes of cocopeat per month, as there are numerous fibre mills that
are of close proximity to the factory and provides a continuous supply of raw
material. “Their cocopeat is the most economical, and the best growing medium
for almost every agricultural, horticultural, floriculture crop, both indoors
and outdoors,” says Mr. Viswanaathan.
Uses of Cocopeat Cocopeat is a
soil substitute, which is economical, bio-degradable, 100% organic enriching
agent. It is an alternative to peatmoss, perlite and rockwool. Cocopeat is a
growing medium used for varied applications like horticulture, floriculture,
hydroponics, greenhouses, landscapes, golf courses, horse barn, cattle barn and
pigsty and other animal shelters. It is especially useful in desert regions
where there is water shortage because of its water holding capacity. “It is
used as a water holding agent in golf construction. It should be evenly mixed
with 20% cocopeat and 80% sand before forming sand scape for the golfers. This
saves huge amount of water as cocopeat will hold enough water to the grass,”
explains Mr. Viswanaathan. “Golf courses have vast areas of grass, about 100
acres, so imagine how much water you need per day even for a medium course,” he
adds quizzically.
Source of Raw Materials
The company sources coco from its
own farms and from the nearby areas. “They are strategically placed in the belt
of coconut plantations in South India. They get the coir dust from coconut husk
first. Then they sieve the fibres, followed by drying the material and removing
the sand particles. Finally they compress with their machines and cut the huge
blocks according to customer requirement,” Mr. Viswanaathan explains the process.
When asked whether cocopeat
harvested from coastal sites can destroy plants because of the salt content in
the peat, Mr. Viswanaathan says, “Cocopeat /coir by nature has salt and it
should be put in open fields in about 100 acres, as they do in their farm, and
allow the rains to wash the salts. They use the cocopeat only after 6 months
and yes the costal cocopeat is of no use as it has high salt content.”
He further opines, “Coconut from
Tamilnadu and some parts of Kerala can very well be used and, also, those from
other costal areas can also be used, but only after they are processed in the
processing factories.” He however adds, “Coir fibre pith should not be taken
from these areas, as there are no factories in Kerala for processing cocopeat.
They manufacture only fibre - mats, looms, carpets etc., from the fibre.”
When asked why people abroad have
stopped using cocopeat and shifted to long-fibered sphagnum moss, Mr.
Viswanaathan says, “Peat from Canada and Britain has been banned as it is
disturbing the ecological balance in those countries endangering certain rare
species of birds and destroying swamps.” He adds, “Cocopeat is manufactured
from coconut husk in tropical India and Sri Lanka but peat is different. It is
a product from centuries old plants in these countries.
Their product was first known as a
coir pith block but when the foreigners stopped using peat, the term used was
cocopeat - both are different,” he adds.
He goes on to say, “As peat has
been banned abroad, they have switched to cocopeat - the only alternative to
peat moss, sphagnum peat, rock wool, perlite, which are very expensive,”
adding, ” Srilanka and India have increased the cocopeat production by 100% due
to the demand and more usage from EU, Australia and the Americas. Cocopeat is
the only material, which is 100 % eco friendly, very good soil conditioner,
soil substitute and the plants will love them.”
Machinery Division
Nova Exporters, the machinery manufacturing division of the company for coir,
is located at Peelamedu, Coimbatore in Tamilnadu. This division manufactures
and exports cocopeat machines, coir machines, foundry equipment and tea
machines. It is specialized in manufacturing cocopeat machines,
coir-defibering, de-corticator, coir yarn, coconut husk chips and cut-fibre
machines.
The company’s prime products for
the export market are cocopeat machines, automatic coir loom, coco log and
geo-textile. It claims to have already implemented 30 cocopeat block machines
in various parts of India. Nova has in-house computer aided design,
manufacturing facilities. “They produce the latest machinery, which gives more
production and less maintenance. This technology was developed from the Dutch.
They have two firms for cocopeat manufacturing,” he adds.
Market for Products
The company has planned to increase its production as it has started getting
increased enquires from states like Gujarat and also from West Bengal. “Their
sale is scattered right now but I think the demand from Gujarat is more,” says
Mr. Viswanaathan. He says that 60% of the products are exported.
The company exports its products
to Gulf countries, and Europe. “They also want to stretch to East Indies and
tap the markets of Philippines, Indonesia, Vietnam South Koreas in terms of
cocopeat machinery,” he says, reiterating, “Their prime goal is to go global.”
Business Turnover
“In just 2 years and 6 months they are in the export market for grow bags,
blocks, cocopeat machinery manufacturers,” proclaims Mr. Viswanaathan. “They
have about 40 people in their factory/farm (they had started with a strength of
just 7 people in 2002). They want to go global today and expand way beyond the
India markets. They want to go in for joint venture to tap American and
European markets,” he adds. However he does not disclose the company sales
figure.
Recounting the various hurdles he
faces in running the organization, Mr. Viswanaathan says, “My father and I went
to the bank to avail loan but it is more difficult to get a business loan than
getting a car loan,” he laments, adding, “There is a lot of red tapisim in
government organizations.”
Competition
Mr. Viswanaathan maintains that the company does not face much competition, as
the market is different. He says, “Once a buyer buys my product, I make sure to
give the best in terms of quality, price and they encourage buyers to visit
their premises and give feedback about their products.”
Joint Venture
Talking about the company’s plans to scale up business, Mr. Viswanaathan says,
“They have the latest technology - the best I can assure you, as they want to
go global and want to meet global standards. They want to expand by investing
in new machines, and go for joint ventures with foreign companies.”
The company is looking to
establish long-term, mutually benefiting joint ventures with international
companies in the field of cocopeat. It offers detailed project reports to
interested overseas companies plant layout, machine technology, country of
investment and brand positioning the product in the global market place. Mr.
Viswanaathan says, “The customer is given complete training and full fledged
knowledge of the whole process. All the requirements of the customer are
fulfilled by their technical professionals.” Mr. Viswanaathan is a management
graduate from UK- University of Wales. “I have visited numerous factories in
Germany and later I started my dream to put my own factory and export them,” he
avers.
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 records 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.46.20 |
|
UK
Pound |
1 |
Rs.84.57 |
|
Euro |
1 |
Rs.58.12 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |