MIRA INFORM REPORT

 

 

Report Date :

28TH March, 2006

 

IDENTIFICATION DETAILS

 

Name :

PUNJAB CHEMICALS & CROP PROTECTION LIMITED

 

 

Formerly Known As :

PUNJAB CHEMICALS & PHARMACEUTICALS LIMITED

 

 

Registered Office :

SCO 417-418, Sector 35C, Himalaya Marg,  Chandigarh – 160 022, India

 

 

Date of Incorporation :

01ST December, 1975

 

 

Com. Reg. No.:

53-3603

 

 

TAN No.:

(Tax Deduction & Collection Account No.)

PTLP10387G

 

 

Legal Form :

Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of chemicals like Oxalic Acid, Diethyl Oxalate and Sodium Nitrite, etc.

 

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

 

Maximum Credit Limit :

USD 1250000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company engaged in manufacturing and marketing of chemicals viz.  oxalic acid and other oxlates, agro chemicals and their intermediates and speciality chemicals.   The company is an ISO 9001-2000 and ISO 14001 certified company.  Directors of the company are well experienced and resourceful industrialists.  Their trade relations are reported as fair.  Payments are usually correct and as per commitments.  Financial position of the company is satisfactory. 

 

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

 

LOCATIONS

 

Registered Office :

SCO 417-418, Sector 35C, Himalaya Marg,  Chandigarh – 160 022, India

Tel. No.:

91-172-2600955/2603120/2604127

Fax No.:

91-172-2603621

E-Mail :

1. pcpl_chd@satyam.net.in

2. scschem@bom3.vsnl.net.in

Website :

http://www.peplsts.com

 

 

Factory 1 :

Milestone 18, Ambala-Kalka Road, Bhankarpur (Derabassi), Dist. Patiala, Punjab

Tel. No.:

91-1762-2430094 / 2433613

Fax No.:

91-1762-2430070

E-Mail :

 pcplfac@satyam.net.in

 

 

Branches :

˛              1012, 10th Floor, Ansal Bhawan, K.G. Marg, New Delhi 110 001

Tel. 91-11-23314867 / 23312406

Fax. 91-11-23314890

E-Mail :  pcpldel@satyam.net.in

 

 

˛              Plot No. 645-646, 4th/5th Floor, Oberoi Chambers II, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra

Tel. No. 91-22-28723865/28723866

Fax. 91-22-28725119/28735743

E-mail. stschem@bom3.vsnl.net.in

           

˛              Excel Estate, S.V. Road, Goregaon (West), Mumbai - 400 062, Maharashtra

Tel. No. 91-22-28723865 / 28723866

Fax No. 91-22-28725119 / 28735743

E-Mail  : stschem@bom3.vsnl.net.in

 

˛              414, Navketan Complex, Opp. Clock Tower, 52, S. D. Road, Secunderabad, Andhra Pradesh

Tel. 91-40-27800292 / 27805662

Fax. 91-40-27806943

E-Mail  : pcplhyd@hd2.vsnl.net.in

 

 

DIRECTORS

 

Name :

Mr. Shalil Shroff

Designation :

Executive Director

Date of Birth/Age :

36 years

Qualification :

B. Com.

Experience :

13 years

Date of Appointment :

15.01.1992

Previous Employment

STS Chemicals Limited, Director

 

 

Name :

Mr. G. Narayana

Designation :

Chairman

 

 

Name :

Mr. A. G. Shroff

Designation :

Director

 

 

Name :

Mr. Vijay Rai

Designation :

Director

 

 

Name :

Mr. Gurucharan Singh

Designation :

Director

 

 

Name :

Mr. Mukesh D. Patel

Designation :

Director

 

 

Name :

Mr. Jagdish R. Naik

Designation :

Director

 

 

Name :

Mr. N. Gopinath

Designation :

Director

 

 

Name :

Mr. Avtar Singh

Designation :

Director (Operations & Business Development)

 

 

Name :

Mr. Punit K. Abrol

Designation :

Company Secretary & Vice President (Finance)

 

 

Name :

Mr. Punit K. Abrol

Designation :

Vice President (Finance) & Secretary

 

Name :

Mr. Veersingh Rajebhosale

Designation :

Senior General Manger (Exports)

 

 

Name :

Mr. Jain Prakash

Designation :

General Manager (Project)

 

 

Name :

Mr. Surinder Paul

Designation :

Assistant General Manager (Project)

 

 

Name :

Mr. Ravinder Chadha

Designation :

Assistant General Manager (Personnel)

 

 

Name :

Mr. Dalip Asher

Designation :

Deputy General Manager (Commercial)

 

 

Name :

Capt. S.S. Chopra

Designation :

Director

 

 

Name :

Mr. Umesh Sanghvi

Designation :

Director

 

 

Name :

Mr. R.S. Negi

Designation :

Manager

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Promoters

1780376

Mutual Funds & UTI

152667

Banks, Financial Institutions,

Insurance Companies (Central /State/Govt. Institutions/ Non

Government Institutions)

60530

Flls

15000

Private Corporate Bodies

255968

Indian Public

2034115

NRIs/OCBs

12668

TOTAL

4311324

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of chemicals like Oxalic Acid, Diethyl Oxalate and Sodium Nitrite, etc.

 

 

Products:

Product

Item. No.

Oxalic Acid

29171101

Diethyl Oxalate

29171109

Sodium Nitrite

28341001

 

 

Exports to :

Japan and UK

 

 

Imports from :

Europe and Far East

 

 

Terms :

 

Purchasing :

L/C, D/A and D/P terms.

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Oxalic Acid & other Oxalates

MT

18300

15850

15577

Agro Chemicals & their Intermediates

MT

6150

6782

6226

Speciality Chemicals

MT

1115

150

74

Other Chemicals

MT

7100

3500

3500

By-products

MT

10960

0.00

18502

 

GENERAL INFORMATION

 

No. of Employees :

400

 

 

Bankers :
  • Bank of Baroda
  • UTI Bank
  • State Bank of India

 

 

Facilities :
SECURED LOANS

31.03.2005

Term Loan

 

Bank of Baroda

 

The loan is secured by hypothecation of movable machineries.  This is further secured by personal guarantee of the Managing Director of the company.

26.824

Industrial Development Bank of India

0.000

The loan is secured by first charge on all the movable and immovable assets of the company (subject to prior charge on specificed movable assets in favour company’s bankers for working capital facilities) on paripassu basis with existing charges of Bank of Baroda for its term loan as well as working capital limits.  The loan is further secured by way of pledge of 145700 equity shares of Excel Industries Limited)

 

UTI Bank Limited

(Term loan of Rs. 50.000 millions secured by hypothecation of movable plant and machineries, furniture & fixtures, etc. acquired under the loan. Term loan of Rs. 20.000 millions secured by equitable mortgage by way of deposit of title deed of property acquired)

238.914

From Banks

 

(Working capital demand loan and cash credit limit aggregating to Rs. 60.000 millions are secured by first charge by way of hypothecation of inventories and book debts and export packing credit limit of Rs. 50.000 millions is secured by first charge by way of hypothecation of inventories).

 

The aforesaid term loans and cash credit accounts are further secured by equitable mortgage of immovable assets of the company at Works – Derabassi, District Patiala, Punjab on paripassu basis.

 

Under vehicle finance scheme

5.941

From ICICI Bank Limited and Non Banking Finance Companies (Secured by hypothecation of vehicles acquired under the said schemes)

11.011

Total

352.844
UNSECURED LOANS

 

FIXED DEPOSITS

 

1) From Shareholders

13.354

2) From others

(Amount rapayable within one year Rs. 20.406 millions, previous year Rs. 19.110 millions)

30.351

Interest accrued and due

0.048

 

 

Other Loans and Advances :-

 

From Selling Agents

5.455

Intercorporate Deposits

27.000

Short Term loan from UTI Bank

20.000

Total

52.455

TOTAL

96.208

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

J. R. Khanna & Company

Chartered Accountants

 

 

Associates/Subsidiaries :
  • Excel Industries Limited
  • STS Chemicals Limited
  • Eftech Shroff (India) Limited
  • Hemsil Trading & Manufacturing (Private) Limited

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

4800000

Equity Shares

Rs. 10/- each

Rs. 48.000 millions

20000

9.8% Redeemable Cumulative Preference Shares

Rs. 100/- each

Rs. 2.000 millions

 
Total

 

Rs. 50.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4326357

Equity Shares

Rs. 10/- each

Rs. 43.264 millions

 

 

 

 

Subscribed & Called up Capital :

 

 

 

4311324

Equity Shares

Rs. 10/- each

Rs. 43.113 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2005

31.03.2004

31.03.2003

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

43.113

21.557

21.557

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

262.889

223.825

183.982

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

306.002

245.382

205.539

LOAN FUNDS

 

 

 

1] Secured Loans

352.844

280.481

190.539

2] Unsecured Loans

96.208

98.348

63.282
TOTAL BORROWING

449.052

378.829

253.821

DEFERRED TAX LIABILITIES

67.641

50.781

46.902

Government Grant

3.500

0.000

0.000
 

 

 

 
TOTAL

826.195

674.992

506.262
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

298.746

222.158

213.044
Capital work-in-progress

6.496

33.629

7.835
 

 

 

 
INVESTMENT

49.640

49.640

37.423
DEFERREX TAX ASSETS

 

 

 
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
243.272
214.254

176.944
 
Sundry Debtors
248.481
173.560

152.233
 
Cash & Bank Balances
37.004
68.194

54.530
 
Other Current Assets
0.000
0.000

0.000
 
Loans & Advances
125.796
110.716

64.139
Total Current Assets
654.553
566.724

447.846
Less : CURRENT LIABILITIES & PROVISIONS
 
 

 
 
Current Liabilities
199.718
195.249

202.518
 
Provisions
44.023
28.759

8.729
Total Current Liabilities
243.741
224.008

211.247
Net Current Assets
410.812
342.716

236.599
 

 

 

 
MISCELLANEOUS EXPENSES

60.501

26.849

11.361
 

 

 

 
TOTAL

826.195

674.992

506.262

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2005

31.03.2004

31.03.2003
Sales Turnover [including other income]

1644.308

1232.717

1020.938
 

 

 

 
Profit/(Loss) Before Tax

122.005

72.590

44.903
Provision for Taxation

39.855

20.479

16.725
Profit/(Loss) After Tax

82.150

52.111

28.178
 

 

 

 
Export Value

1051.618

786.325

667.138
 

 

 

 
Import Value

265.528

182.820

112.281
 

 

 

 
Total Expenditure

1531.168

14.820

976.035

 

 

QUARTERLY

 

Particulars

30.06.2005 1st Quarter

30.09.2005 2nd Quarter

31.12.2005 3rd Quarter

Sales Turnover

406.400

374.900

425.400

Other Income

04.100

04.400

2.300

Total Income

410.500

379.300

427.700

Total Expenditure

363.800

351.000

369.500

Operating Profit

46.700

28.300

58.200

Interest

09.900

09.800

12.700

Gross Profit

36.800

18.500

45.500

Depreciation

05.800

06.000

6.200

Tax

04.000

10.300

12.500

Reported PAT

19.500

06.800

25.00

 

200506 Quarter 1  - Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 6.80 million Consumption of Raw Materials Rs 258.90 million Staff Cost Rs 29.30 million Other Expenditure Rs 68.80 million Fringe Benefit Tax Rs 1.00 million Tax Includes Provision for Current Tax Rs 3.00 million Deferred Tax Rs 7.50 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended June 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 28 Complaints disposed off during the quarter 28 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on July 14, 2005 2. The Company has one primary business segment namely, Chemicals and the Capital Employed therein as at June 30, 2005 was Rs 9785. 3. Consequent upon allotment of Bonus Shares in the ratio of 1:1, the paid up Equity Share Capital of the Company was increased to Rs 43.10 million on October 20, 2004. In view of the above, the Basic & Diluted Earnings per share have been calculated considering the Bonus Shares as part of the Capital, in accordance with AS 20. 4. The Board of Directors of the Company in its meeting held on May 12, 2005, have approved the Scheme for amalgamation of Alpha Drug India Ltd. and STS Chemicals Ltd with the Company, w.e.f. April 01, 2004 (the Appointed Date), subject to the approval of the competent authorities. The Hon'ble High Court of Punjab and Haryana at Chandigarh vide Order dated May 26, 2005, has directed to convene the meetings of the Equity Shareholders, Unsecured Creditors and Secured Creditors of the Company on July 22, 2005 for consideration of the aforesaid Scheme of Amalgamation. No effect of the same has been given in the above results pending approval of the competent authorities. Further figures for Reserves as on March 31, 2005 have not been given as the accounts for the year ended March 31, 2005 are pending finalisation and approval. The Reserves as on March 31, 2004 as per audited accounts were Rs 223.80 million. 5. The Statutory Auditors have carried out a limited review of the results for the period ended June 30, 2005. 6. Previous period figures have been regrouped wherever necessary to correspond with the figures for the current period.

 

200509 Quarter 2  - Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (0.10)million Consumption of Raw Materials Rs 252.10 million Staff Cost Rs 29.40 million Other Expenditure Rs 69.50 million Tax Includes Provision for Current Tax Rs 9.20 million Deferred Tax Rs(4.60)million Fringe Benefit Tax Rs 1.10 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended September 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 03 Complaints disposed off during the quarter 03 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on October 24, 2005. 2. The Company has only one primary business segment, namely, Chemicals and the Capital Employed therein as at September 30, 2005 was Rs 1089.70 million. 3. Consequent upon allotment of Bonus Shares in the ratio of 1:1, the paid up Equity Share Capital of the Company was increased to Rs 43.10 million on October 20, 2004. In view of the above, the Basic & Diluted Earnings per share have been calculated considering the Bonus Shares as part of the Capital, in accordance with AS 20. 4. The Board of Directors of the Company in its meeting held on May 12, 2005 have approved the Scheme of amalgamation of Alpha Drug India Ltd and STS Chemicals Ltd with the Company, w.e.f. April 01, 2004 (the Appointed Date), and the scheme has also been approved by the Equity Shareholders, Unsecured Creditors and Secured Creditors of the Company in their respective meetings held on July 22, 2005 as per the order dated May 26, 2005 of the Hon?ble High Court of Punjab & Haryana at Chandigarh subject to the approval of the competent authorities. As such no effect of the same has been given in the above results.Further, figures for Reserves as on March 31, 2005 at have not been given as the accounts for the year ended March 31, 2005 are pending finalisation and approval. The Reserves as on March 31, 2004 as per audited accounts were Rs 223.80 million. 5. The statutory auditors have carried out a limited review of the results for the period ended September 30, 2005. 6. Previous period figures have been regrouped wherever necessary to correspond with the figures for the current period.

 

200512 Quarter 3 - . The above results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on 28th January 2006. 2. The company has only one primary business segment, namely, Chemicals and the Capital Employed therein as at 31st December 2005, was 1131.300 Millions  3. As regards the remarks in the Auditors Report on the Accounts for the year ended 31st March 2005, it is stated that approval from the Shareholders for the confirmation of corporate guarantees given exceeding the limits prescribed under Section 372A of the Companies Act 1956, has been taken in the Annual General Meeting held on 28th December 2005. 4. The Board of Directors of the company in its meeting held on 12th May 2005 had approved the Scheme of Amalgamation of Alpha Drug India Limited and STS Chemicals with the company w.e.f 01.04.2004 (the appointed date) and the Scheme has also been approved by the Equity Shareholders, unsecured Creditors and Secured Creditors of the company in their respective meeting held on 22nd July 2005 as per the order dated 26th May 2005 of the Hon'ble High Court of Punjab & Harayana at Chandigarh subject to the approval of the competent authorities. However, no effect of the same has been given in the above results pending final approval of the scheme by the said High Court. 5. Provisiob for Tax on account of Current Tax & Fringe Benefit Tax are subject to adjustment at the time of finalisation of accounts at the year end giving effect to Scheme of Amalgamtion. 6. The Statutory Auditors have carried out a limited review of the results for the period ended 31st December 2005. 7. Previous period figures have been regrouped wherever necessary to correspond with the figure for the current period. 8. The status on the investor's complaints/requests as on 31.12.2005 is as under.

 

KEY RATIOS

 

PARTICULARS

 

31.03.2005

31.03.2004

31.03.2003

Debt Equity Ratio

1.49

1.40

1.29

Long Term Debt Equity Ratio

0.58

0.56

0.53

Current Ratio

1.12

1.11

1.12

TURNOVER RATIOS

 

 

 

Fixed Assets

3.41

2.88

2.57

Inventory

7.39

6.44

7.08

Debtors

8.02

7.74

8.24

Interest Cover Ratio

3.82

3.28

3.08

Operating Profit Margin (%)

11.05

9.95

8.18

Profit Before Interest and Tax Margin (%)

9.76

8.29

6.31

Cash Profit Margin (%)

6.14

5.79

4.55

Adjusted Net Profit Margin (%)

4.85

4.13

2.67

Return on Capital Employed (%)

25.51

19.99

15.21

Return on Net Worth (%)

29.59

23.10

14.47

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History :

 

The company was promoted by Excel Industries and the Punjab State Industrial Development Corporation. It commenced  commercial production in October 1978. The promoters also have interests in other companies such as Transpek Industries and United Phosphorus.

 

The company came out with a rights issue in April 1989 to part finance its expansion and to set up a 100% Export Oriented Unit to manufacture oxalic acid.

 

The company developed new products during the year 2001-2002.

 

From its inception in 1975 the company was promoted as a joint sector project by Punjab State Industrial Development Corporation and Excel Industries Limited, Mumbai. The company's nature of being people and service oriented approach, coupled with dynamism and foresightedness of its team has enabled it to be positioned in the  'top bracket', both in the local and international market.

 

In the year 1998-99 company exports has jump of 63% from Rs. 351.100 millions to Rs. 573.200 million. Product of company continues to enjoy all round acceptance in the world market. Company also looking out the manufacturing of speciality chemicals for some international reputed companies. Company declared dividend for the year 1998-99 of 50% compared to 35% previous year.

 

The company is planning to develop new products during the year 2001-2002.

 

Operations

 

The sales turnover of the company increased to Rs. 16.900 millions during the year from Rs. 1260.600 millions for the last year recording a growth of 34%. In view of the increased operations, the profit went up Rs. 122.000 millions during the year under report against Rs. 72.600 millions in the last year. These results had been achieved mainly on account of better products mix, higher export volumes and series of initiatives taken to reduce the cost.

 

Finance

 

During the year under review, the Company has availed a term loan of Rs. 30.000 Millions  from Bank of Punjab Ltd. The Company has also started availing working capital limits from State Bank of India to cater to the enhanced requirement with lower cost of interest. The total amount of Fixed Deposits as on 31st March,2005 was Rs. 43.874 Millions (previous year Rs. 46.892). The deposits amounting to Rs. 0.169 Millions  were unclaimed by 11 number of depositors as on 31.03.2005 (previous year Rs.0.184 by 13 depositors). The Company has sent reminders to these depositors to complete the procedural formalities for repayment. In terms of the provisions of Investors Education & Protection Fund (Awareness and Protection of Investors) Rules,2001, Rs. 51,089 of unpaid/unclaimed dividend pertaining to the financial year 1996-97 (Rs. 19936 for the financial year 1995-96) was transferred during the year under

review to the Investors Education & Protection Fund, upon the expiry of seven years.

 

change of name of the company

 

Of late, the company’s activities are focussed on manufacture of agro chemicals which are required for crop protection. Therefore, the Board of Directors after due consideration has decided that the company’s name be changed to Punjab Chemicals and Crop Protection Limited. This change of name shall be subject to the approval of the members and the Central Government under section 21 of the companies Act, 1956.

 

It is in trade terms with:-

 

˜                  Abhitech Energycon Services Private Limited

˜                  Chemtron Engineers Private Limited

˜                  Dimple Drums & Barrels Limited

˜                  Gupta Scientific Industries

˜                  Mass Sealing Systems (Private) Limited

˜                  North Street Cooling Towers Private Limited

˜                  Alcon Wires & Cables Industries

˜                  Amar Equipments Private Limited

˜                  Cal Micro System

˜                  Delta Finocem Private Limited

˜                  Hadifield Steels and Alloys

˜                  J. S. Chemicals

˜                  Kavery Instruments Company

˜                  Kewalson

˜                  Prominent Scientific & Engineering Industries

˜                  Saurav Chemicals Limited

˜                  Star Scientific Glass Company

˜                  Super Scientific Works Private Limited

 

Fixed Assets:

 

 

 

 

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.45.61

UK Pound

1

Rs.77.15

Euro

1

Rs.53.77

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--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

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

51

 

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

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

 

 

 

 

 

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