MIRA
INFORM REPORT
|
Report Date : |
28.10.2006 |
IDENTIFICATION
DETAILS
|
Name : |
OSWAL
CHEMICAL & FERTILIZER LIMITED |
|
|
|
|
Formerly Known As : |
BINDAL AGRO CHEM LIMITED |
|
|
|
|
Registered Office : |
Village Piprola, Jalalabad Road, Shahjahanpur
– 242 001, Uttar Pradesh, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
17.11.1981 |
|
|
|
|
Com. Reg. No.: |
20-14928 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L2411UP1992PLC014928 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELO01899C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACO1665L |
|
|
|
|
Legal Form : |
A
Public Limited Liability Company. The company's shares are listed on the
Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturing
of Urea, Low Density Polyethylene, Vegetable Ghee (Vanaspati), Solvent
Extraction Plant, Oxygen Gas and Processed Rice |
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
69000000 |
|
|
|
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Usually
Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is an established company and could not run its large production units
successfully. The company successfully sold two manufacturing facilities to
cooperative units. Thus by selling manufacturing facilities company is in
position to settle its large dues to financial institutions and bank. Now,
the company intends to diversify into various areas. Its trade relations are
fair. Payments are reported as correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
Village Piprola, Jalalabad Road, Shahjahanpur
– 242 001, Uttar Pradesh, India |
|
Tel. No.: |
91-5842-225392/225393/222059/222378/222578 |
|
Fax No.: |
91-11-23322703/23716276/223234 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate
Office : |
7th
Floor, Antriksh Bhawan, 22 Kasturba Gandhi Marg, Delhi – 110 001 |
|
Tel.
No.: |
91-11-23327367/23327375/23327376/23715225/23715242 |
|
Fax
No.: |
91-11-23715225/23715233/23716276 |
|
|
|
|
Branches
: |
At
Uttar Pradesh: B-183, Shastri Nagar, Merut, Uttar Pradesh,
India Tel No. 91-121-2768486 3 Jawahar Nagar, Behind Basant Talkies,
Bareilly, Uttar Pradesh, India Tel No. 91-581-2544865 8/2, Betia Hata East, Avas Vikas Colony,
Gorakhpur, Uttar Pradesh, India Tel No. 91-551-2343701 8, Rana Pratap Marg, Flat No. 303, Garden View
Apartments, Lucknow, Uttar Pradesh, India Tel No. 91-522-2274269 136, Jawahar Nagar Extension, Bhelpur,
Varanasi, Uttar Pradesh, India Tel No. 91-542-2310547 Village Piprola, Shajhanpur, Utter Pradesh,
India Tel No. 91-5842-225392/225393 At
Bihar: E-21, 2nd Floor, Krishna Appt
Boring Road, Patna, Bihar, India Tel No. 91-612-2261037 At
West Bengal: 164/65, Prince Anwarshah Road, Lake Gardens,
Calcutta, West Bengal, India Tel No. 91-33-24171947 At
Andhra Pradesh: 16-2-836/D/8/13/1, Madhav Nagar Saidabad,
Hyderabad, Andhra Pradesh, India Tel No. 91-40-24068246 S-3, Fertilizers Complex, 60-3-7, Ramachandra
Nagar, Vijaywada, Andhra Pradesh, India Tel No. 91-866-2486498 House No.40-142-16B, First Floor, Venkatramana
Colony, Kurnool, Andhra Pradesh, India Tel No. 91-8518-252410 At
Orissa: Plot No. 186(P), Behind Biju Patnaik College,
Jayadev Vihar, Nayapalli, Bhubaneshwar, Orissa, India Tel No. 91-674-2557178 |
DIRECTORS
|
Name : |
Mr.
Abhey K. Oswal |
|
Designation : |
Chairman
& Managing Director |
|
Date of Birth/Age : |
51
years |
|
Qualification : |
B.
Com. |
|
Experience : |
30
years |
|
Date of Appointment : |
1st
September, 1995 |
|
Previous
Employment |
Managing
Director – Oswal Agro Furane Limited |
|
|
|
|
Name : |
Mr. Anil Bhalla |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Rajesh Bhatia |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr.
Atul Kulshrestha |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr. R
K Singhania |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr.
Virender Kumar Jain |
|
Designation : |
Director
|
|
|
|
|
Name : |
Ms.
Reshan Lal Bansal |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr.
Suparas Bhandari |
|
Designation : |
Director
|
KEY EXECUTIVES
|
Name
: |
Mr. H
K Gupta |
|
Designation
: |
Company
Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters and Associates |
13,92,07,452 |
54.21 |
|
Banks, Financial Institutions and Mutual Funds |
1,38,31,321 |
5.38 |
|
Indian Public |
9,37,01,949 |
36.49 |
|
NRI/OCB/FII's |
1,00,68,437 |
3.92 |
|
TOTAL |
25,68,09,159 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
of Urea, Low Density Polyethylene, Vegetable Ghee (Vanaspati), Solvent
Extraction Plant, Oxygen Gas and Processed Rice |
||||||||||||||||
|
|
|
||||||||||||||||
|
Products : |
|
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Ammonia |
MT |
-- |
-- |
406073.10 |
|
UREA |
MT |
-- |
-- |
704966.10 |
|
DAP |
MT |
-- |
-- |
57377.15 |
|
NP |
MT |
-- |
-- |
130519.10 |
|
Low Density Polyethylene |
MT |
15357 |
13000 |
-- |
|
Solvent Extraction Plant |
MT |
90000 |
90000 |
-- |
GENERAL
INFORMATION
|
No. of Employees : |
2500 |
|
|
|
|
Bankers : |
v
State
Bank of India v
Oriental
Bank of Commerce v
United
Bank of India v
Allahabad
Bank v
ICICI
Banking Corporation Limited v
ABN Amro Bank v
HDFC Bank Limited v
Standard Chartered Bank v Syndicate Bank |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
M/s. T.R. Chadha & Company Chartered Accountants New Delhi |
|
|
|
|
Associates/Subsidiaries : |
All
the companies under Oswal Group |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
625,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 6250.000 Millions |
|
12,500,000 |
0.0 % Optional convertible Preference Shares |
Rs. 100/- each |
Rs. 1250.000 Millions |
|
23,000,000 |
0.0 % Optional convertible Preference Shares |
Rs. 100/- each |
Rs. 2300.000 Millions |
|
27,500,000 |
Redeemable preference Shares |
Rs. 100/- each |
Rs. 2750.000 Millions |
|
|
Total |
|
Rs. 12550.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
256,809,159 |
Equity Shares |
Rs. 10/- each |
Rs. 2568.092 Millions |
|
24,000,000 |
0.01 % Redeemable Non - Cumulative Preference Shares |
Rs. 100/- each |
Rs. 2400.000 Millions |
|
|
Total |
|
Rs. 4968.092 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4968.092 |
7448.650 |
4968.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
19132.207 |
5466.284 |
0.000 |
|
|
4] (Accumulated Losses) |
(6761.026) |
(8809.951) |
(217.400) |
|
|
NETWORTH |
17339.273 |
4104.983 |
4750.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
23550.322 |
24903.600 |
|
|
2] Unsecured Loans |
194.601 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
194.601 |
23550.322 |
24903.600 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17533.874 |
27655.305 |
29654.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
251.331 |
20983.187 |
22204.500 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
607.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
204.038 |
489.823 |
490.900 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
371.915
|
5435.819 |
3966.000 |
|
|
Sundry Debtors |
3109.229
|
2892.117 |
4710.600 |
|
|
Cash & Bank Balances |
12836.216
|
107.277 |
273.400 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
2148.170
|
331.044 |
4894.400 |
|
Total Current Assets |
18465.530
|
8766.257 |
13844.400 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1379.516
|
2575.992 |
7459.100 |
|
|
Provisions |
7.509
|
60.276 |
138.300 |
|
Total Current Liabilities |
1387.025
|
2636.268 |
7597.400 |
|
|
Net Current Assets |
17078.505
|
6129.989 |
6247.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
52.306 |
104.600 |
|
|
|
|
|
|
|
|
TOTAL |
17533.874 |
27655.305 |
29654.300 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
10048.656 |
15460.865 |
11960.600 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
1597.230 |
(3126.300) |
(2823.500) |
|
Provision
for Taxation |
3.299 |
0.000 |
10.200 |
|
Profit/(Loss)
After Tax |
1593.931 |
(3126.300) |
(2833.700) |
|
|
|
|
|
|
Import
Value |
1657.941 |
7027.670 |
NA |
|
|
|
|
|
|
Total
Expenditure |
15118.462 |
18534.606 |
11958.800 |
QUARTERLY
|
PARTICULARS |
|
|
30.06.2006 (1ST Quarter) |
|
Sales Turnover |
|
|
312.900 |
|
Other Income |
|
|
0.000 |
|
Total Income |
|
|
312.900 |
|
Total Expenditure |
|
|
101.300 |
|
Operating Profit |
|
|
211.600 |
|
Interest |
|
|
1.400 |
|
Gross Profit |
|
|
210.200 |
|
Depreciation |
|
|
3.000 |
|
Tax |
|
|
0.400 |
|
Reported PAT |
|
|
206.800 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2005 |
|
Debt
Equity Ratio |
1.25 |
7.60 |
3.98 |
|
Long
Term Debt Equity Ratio |
1.05 |
6.34 |
3.27 |
|
Current
Ratio |
2.60 |
1.09 |
1.20 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.41 |
0.42 |
0.33 |
|
Inventory
|
2.69 |
3.28 |
3.02 |
|
Debtors |
2.61 |
4.05 |
2.59 |
|
Interest
Cover Ratio |
(2.25) |
(0.16) |
0.07 |
|
Operating
Profit Margin (%) |
(5.25) |
8.15 |
16.20 |
|
Profit
Before Interest and Tax Margin (%) |
(41.08) |
(2.74) |
1.69 |
|
Cash
Profit Margin (%) |
(23.51) |
(9.41) |
(8.93) |
|
Adjusted
Net Profit Margin (%) |
(59.34) |
(20.29) |
(23.44) |
|
Return
on Capital Employed (%) |
(13.00) |
0.00 |
0.00 |
|
Return
on Net Worth (%) |
(44.34) |
0.00 |
0.00 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.47.30/- |
|
Low |
Rs.45.70/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Incorporated
in 1981, Oswal Chemicals & Fertilizers (OCFL) promoted by the Oswal group
which comprises Oswal Agro Mills and Oswal Agro Furane. The company has plants
at Shahjahanpur, UP; Mandideep and Dewas, Madhya Pradesh and Rishra, West
Bengal. OCFL manufactures agro-products like vegetable ghee; it has a soyabean
processing plant, a vegetable oil refinery, a hydrogenation plant and a flour mill;
it also produces chemicals like low-density polyethylene (LDPE).
In October 1989, the company came out with a public issue of 19.700
Millions 12.5% FCDs of Rs 200 aggregating Rs 3950.000 Millions to part-finance
the Rs 6950.000 Millions project of setting up a gas-based fertiliser complex
at Shahjahanpur, Uttar Pradesh. Commercial production of urea commenced in
1995. The re-location of LDPE plant from Rishra in West Bengal to Shahjahanpur
in U.P has been successfully completed and commenced commercial production on
March, 1998. The company also shut down its LDPE plant in September, 1998,
after lifting of price control on molasses.
The 1.920 million TPA Phosphatic Fertilizer project at Paradeep, Orissa
has started trial production from March, 2000. Teething troubles faced during
the trial runs were attended to with the help of process licensors. The Company
has tied up the raw material requirements for the plant on a long term basis.
The
group’s well-diversified business houses comprises of:
v
Oswal
Chemicals and Fertilisers Limited (OCFL)
v
Oswal
Agro Mills Limited (OAML)
v
Oswal
Agro Furane Limited (OAFL)
The
company's fixed assets of important value include Leasehold & Freehold
Land, Site Development Land, Leasehold & Freehold Buildings, Plant &
Machinery, Furniture & Fixtures, Vehicles and Capital work-in-progress.
Review of Operations
The year under review was quite important in so far as it relates to the
operations of the company. During the year, the company became debt free and
investors value increased manifold. As you are aware that the company
was manufacturing Urea and Di-Ammonium Phosphatic (DAP) fertilizers at
Shahjahanpur (U.R) and Paradeep (Orissa) respectively and the company was the
single largest manufacturer of DAP through Rock Phosphate route in India. By
supplying both Urea and DAP to the farmers of the country, the company has
immensely contributed to the green revolution in the country.
However, the fertilizers industry in India is governed by subsidy regime
which is hampering growth prospects and as such, slow down the growth rate.
Therefore, during the year under review, the directors decided to exit from
this business of manufacturing fertilizers to move on to rapidly growing
sectors like petrochemicals and petroleum, mining and metals, real estate, etc.
The Directors are pleased to inform you that the state of the art facility to
manufacture DAP at Paradeep (Orissa) was sold to Indian Farmers Fertilizer
Co-operative Limited. (IFFCO). The company was able to realize an amount of
Rs.2400.000 Millions after transferring liabilities of Financial institutions
and Banks amounting to Rs.23800.000 Millions. The deal was so structured that
the Financial Institutions and Banks who had provided financial assistance to
this unit got paid all their outstanding dues along with interest without the
Company taking any waivers or concession.
This early repayment by way of transfer of this asset has certainly
created value for investors and has enhanced the company's reputation before Financial
Institutions and Banks. Similarly, the Urea manufacturing unit at Shahjahanpur
was sold for a consideration of Rs.19080.000 Millions. It is now run by Kribhco
Shyam Fertilizer Limited. (KSFL), the management of which vests with KRIBHCO,
another large cooperative of farmers. It is a matter of great satisfaction to
the Directors that both of these plants are now operated by large &
successful co-operatives of Indian farmers and will continue to serve the
nation in coming years due to the technological advantage these units had. This
may kindly be appreciated that the Directors preferred national co-operatives
over other private businesses who wanted to purchase these units,
keeping in mind the social obligations and responsibility towards the farmers and
the nation.
Both of these transactions have resulted in a net cash-in flow of
Rs.21480.000 Millions to the company and the company's net worth has improved
to Rs. 1733927.300 Millions from Rs.4052.677 Millions in the last year. It must
be appreciated that this leaves enough room for the company to multiply its
wealth by entering into high growth sectors like petrochemicals and petroleum
products, real estate and other related investment opportunities.
Dividend
The company wishes to diversify its activities in high growth sectors
like petrochemicals and petroleum products, mining and metals, real estate etc.
which may require heavy investment outlay, therefore, for the time being, the
directors do not recommend any dividend for the year.
Material Changes :
There are no material changes affecting the affairs of the company since
the date of Balance Sheet and upto the date of this report.
Change of Registered Office
Pursuant to sale of its Urea undertaking at Shahjahanpur, Uttar Pradesh,
the Board of Directors of the Company has decided to shift the Registered
Office of the Company from Village Piprola, Jalalabad Road, Shahjahanpur (U.R)
to Vijay Inder Nagar (Near Jain Colony), Daba Road, Ludhiana - 141 003
(Punjab). Shareholders approval for the same was sought through postal ballot,
the result whereof was declared on 19.07.2006. Upon completion of necessary
formalities with Company Law Board and Registrar of Companies, the Registered
Office will stand shifted in the state of Punjab.
Management Discussion and Analysis
Overview
Agriculture plays an important role in the progress of any developing
nation. Since the start of the green revolution in the country the fertilizer
industry is assisting agricultural sector to achieve high growth rate. However,
the growth rate in this sector has declined considerably, whereas the growth in
other sectors like real estate, petro-chemicals and petroleum products is
considerably high. The fertilizer industry
always has the constraint of subsidy regime, which hampers growth
prospects. Therefore, the company exited the business of manufacturing
fertilizer, both Urea and DAP. The units at Shahjahanpur (UP) and Paradeep
(Orissa) are sold to Kribhco Shyam Fertilizers Limited (KFCL) and Indian
Farmers Fertilizer Co-operative Limited (IFFCO) respectively. Through this sale
the company has become a debt free company;
in fact, the company repaid its liabilities much before the stipulated
period. Segment wise performance The company sold its Urea and DAP undertakings
during the year and reported a profit after tax of Rs. 1593.900 Millions. The
sale of the two undertakings resulted in a net cash inflow of 21480.000
Millions. However, before the sale the company manufactured 704,966 MT of Urea
and 187,896 MT of DAP/NR
Human Relations
The human relations were cordial throughout the year. Manpower deployed
at Urea and DAP units were transferred to the new owners along with other
assets. There were 122 employees as at 31.03.2006. Internal Control System The
company has a proper and adequate system of internal controls to ensure that
all the assets of the company are safe guarded, transactions are authorised,
recorded and reported correctly. The controls also ensure compliance with
policies and statutes. The operational management drives its controls over
business processes through appropriate operational systems. The observations
and shortcomings pointed out by the auditors are discussed at the audit
committee and Board of Directors Meetings and the suggestions are implemented
in right earnest.
Risks and Concerns
Pursuant to sale of its DAP and Urea undertakings, the Management is
focusing on high growth sectors like petrochemicals, petroleum, mines and
metals, real estate, commodities, investment etc. All the above business have
their inherent risks including project implementation and operational risks.
The Management will ensure that the returns from the new investment avenues are
optimized by minimizing the risks associated with such business.
Opportunity and Outlook
The Management has sufficient experience in setting up and running large
grass root projects and is capable of undertaking large projects for petroleum
products, metals etc. which will further enhance the shareholders value and
yield good returns on investment.
Risk Management
The Board takes responsibility for the total process of risk management
in the organization. Results of the risk assessments and residual risks are
presented to the Senior Management and the Audit Committee members. The
Management is accountable for the integration of risk management practices into
the day to day activities. The scope of the Audit Committee includes review of
the Company's financial and risk management policies. The Audit Committee
reviews the Audit reports covering operational, financial and other business
risk areas
About
Us
Established in 1981, the Oswal
Group is one of the fastest growing business conglomerates in
India and around the world. A well -
diversified business house, it comprises of
Oswal Chemicals and Fertilizers Limited (OCFL)
Oswal Agro Mills Limited (OAML)
The company has a 5000 strong workforce and
its annual turnover is to the tune of 12090.000 Millions as
on the year ended 31.03.2003. The Group
ranks among the top twenty Indian business houses in terms of
net worth.
It leads the industry in the production of agro- based
products, petrochemicals, alcohol chemicals and nitrogenous
fertilizers. It leads the way in phosphatic
fertilizer and power sectors by setting up
the world's largest grass root
DAP plant at Paradeep in Orissa. The
company's manufacturing plants use
the latest available technology. Another area
of interest for the management is its personnel, who are well looked after.
Its plants are located throughout India.In the north, at
Ludhiana, Shahjahanpur etc, in the west at Mumbai and in the east at
Kolkata.
To always be a step ahead and to
provide the best to its clients, it has entered into several
key alliances with top companies in the field.
These technical collaborations are with Buhler
Marg of Germany, Berico of USA, ICI of UK,
Union Carbide and General Electric of USA, Snamp- rogetti of Italy
and a host of others.
With its emphasis on the key
areas of technology and trained manpower, the Oswal Group is
poised for further growth in the years to come.
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.44.84 |
|
UK
Pound |
1 |
Rs.85.55 |
|
Euro |
1 |
Rs.57.28 |
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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|