MIRA
INFORM REPORT
|
Report Date : |
20.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
HEALTH
BIOTECH PRIVATE LIMITED |
|
|
|
|
Registered Office : |
SCO –
88, Sector – 44C, Chandigarh, Uttar Pradesh |
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|
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|
Country : |
India |
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|
|
Financials (as on) : |
30.09.2006
[Provisional] |
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Date of Incorporation : |
24.04.2001 |
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Com. Reg. No.: |
53-24356 |
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CIN No.: [Company
Identification No.] |
U24233CH2001PTC024356 |
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|
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
PTLH11595D |
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|
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|
PAN No.: [Permanent
Account No.] |
AABCH1876K |
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|
|
|
Legal Form : |
Private
Limited Liability Company |
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|
|
|
Line of Business : |
Manufacturers
of Pharmaceutical Products. |
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
350000 |
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|
|
|
Status : |
Satisfactory
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|
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Trade relations are fair. General financial position is
satisfactory. Payments are usually
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office/ Factory : |
SCO –
88, Sector – 44C, Chandigarh, Uttar Pradesh |
|
Tel. No.: |
91-172-3241310
/ 2622688 / 2623369 |
|
Fax No.: |
91-172-2620688 |
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E-Mail : |
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|
Website : |
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|
Area : |
1000
sq. ft. |
|
Location : |
Owned |
DIRECTORS
|
Name : |
Mr.
Paramjit Arora |
|
Designation : |
Director
|
|
Address : |
#
1376, Sector – 40 B, Chandigarh, Uttar Pradesh, India |
|
Date of Birth/Age : |
11.09.1969 |
|
Qualification : |
D.
Pharma |
|
Experience : |
15
years |
|
Date of Appointment : |
24.04.2001 |
|
|
|
|
Name : |
Ms.
Renu Arora |
|
Designation : |
Director |
|
Address : |
#
1376, Sector – 40 B, Chandigarh, Uttar Pradesh, India |
|
Date of Birth/Age : |
12.06.1975 |
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Qualification : |
B. A. |
|
Experience : |
10
years |
|
Date of Appointment : |
24.04.2001 |
|
|
|
|
Name : |
Mr.
Marut Arora |
|
Designation : |
Director
|
|
Address : |
# 206,
Sector – 19A, Chandigarh, Uttar Pradesh, India |
|
Date of Birth/Age : |
27.08.1974 |
|
Date of Appointment : |
21.04.2003 |
|
|
|
|
Name : |
Mr.
Hemant Arora |
|
Designation : |
Director |
|
Address : |
# 206,
Sector – 19A, Chandigarh, Uttar Pradesh, India |
|
Date of Birth/Age : |
04.12.1978 |
|
Date of Appointment : |
21.04.2003 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Mr.
Paramjit Arora |
|
875000 |
|
Ms.
Renu Arora |
|
875000 |
|
TOTAL |
|
1750000 |
|
Names
of Shareholders |
|
No. of Shares |
|
Mr.
Paramjit Arora |
|
2535000 |
|
Ms.
Renu Arora |
|
1365000 |
|
TOTAL |
|
3900000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
of Pharmaceutical Products. |
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|
|
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Products : |
Injectable
Eye / Ear Drops |
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Terms : |
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Selling : |
Credit
|
|
|
|
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Purchasing : |
Credit
[120 days] |
GENERAL
INFORMATION
|
Customers : |
OEM’s |
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|
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No. of Employees : |
522 |
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|
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Bankers : |
State
Bank of India Baddi |
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Facilities : |
T/L :
Rs. 200.000 millions W/ES :
Rs. 70.000 millions B/G :
Rs. 5.000 millions PLC :
Rs. 10.000 millions |
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
Rajesh
Aggarwal & Associates Chartered
Accountants, S.C.O.
40, 2nd Floor, Sector – 31D, Chandigarh – 160030, Punjab |
|
Tel. No.: |
91-172-5012305 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
7500000 |
Equity
Shares |
Rs. 10/- each |
Rs. 75.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3900000 |
Equity
Shares |
Rs. 10/- each |
Rs. 39.000 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.09.2006 [Provisional] [6 Months] |
31.03.2006 [12 Months] |
31.03.2005 [12 Months] |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
39.000 |
39.000 |
14.200 |
|
|
2] Share Application Money |
17.200 |
7.500 |
0.852 |
|
|
3] Reserves & Surplus |
35.637 |
14.980 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
91.837 |
61.480 |
15.052 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
98.567 |
66.480 |
25.832 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
98.567 |
66.480 |
25.832 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
190.404 |
127.960 |
40.884 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
89.501 |
84.929 |
29.253 |
|
|
Capital work-in-progress |
18.692 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
1.217 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
66.800
|
74.837 |
0.000 |
|
|
Sundry Debtors |
51.824
|
37.645 |
0.000 |
|
|
Cash & Bank Balances |
0.969
|
1.209 |
10.446 |
|
|
Other Current Assets |
16.017
|
0.720 |
1.713 |
|
|
Loans & Advances |
0.000
|
0.000 |
0.000 |
|
Total Current Assets |
135.610
|
114.411 |
12.159 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
53.521
|
72.597 |
0.528 |
|
Total Current Liabilities |
53.521
|
72.597 |
0.528 |
|
|
Net Current Assets |
82.089
|
41.814 |
11.631 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.122 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
190.404 |
127.960 |
40.884 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
30.09.2006 [Provisional] [6 Months] |
31.03.2006 [12 Months] |
|
Sales Turnover [including other income] |
|
251.207 |
291.749 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
22.556 |
16.221 |
|
Provision
for Taxation |
|
1.900 |
1.241 |
|
Profit/(Loss)
After Tax |
|
20.656 |
14.980 |
|
|
|
|
|
|
Total
Expenditure |
|
228.651 |
275.527 |
KEY
RATIOS
|
PARTICULARS |
|
30.09.2006 [Provisional] [6 Months] |
31.03.2006 [12 Months] |
31.03.2005 [12 Months] |
|
PAT / Total Income |
(%) |
8.22
|
5.13 |
N.A. |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
8.97
|
5.55 |
N.A. |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
10.01
|
8.13 |
N.A. |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.26 |
N.A. |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
1.65
|
2.26 |
1.75 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
2.53
|
1.57 |
23.02 |
LOCAL AGENCY
FURTHER INFORMATION
|
Name of the company |
HEALTH BIOTECH PRIVATE LIMITED |
|
Presented By |
Sh. Paramjit Arora, Director |
|
1) Date and description of instrument creating the change |
Hypothecations of goods & stocks demand cash credit agreement dated 13.05.2004 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 2.400 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of goods, stocks, R. M., WIP Finished goods, consumable stores & spaers and entire book debts present and future |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
10.75% p.a. |
|
5) Name and Address and description of the person entitled to the charge. |
Punjab National Bank, Baddi |
|
6) Date and brief description of instrument modifying the charge |
Hypothecation of goods & book debts to secure cash credit facility agreement dated 18.01.2006 |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Limit enhanced from Rs. 7.500 millions to Rs. 17.500 millions including CC [Book debts] Limit of Rs. 13.000 millions DP against packing material Rs. 0.400 million @ 12.25% p.a. other terms as per agreement extent of operation = 100% |
|
Name of the company |
HEALTH BIOTECH PRIVATE LIMITED |
|
Presented By |
Sh. Paramjit Arora, Director |
|
1) Date and description of instrument creating the change |
Hypothecation of assets to secure term loan agreement dated 13.05.2004 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 4.700 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of plant and machinery, misc. fixed assets, laboratories equipment, computer, furniture & fixtures etc. and any other secured which is acceptable to banks from time to time |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Int. 11.25% p.a. |
|
5) Name and Address and description of the person entitled to the charge. |
Punjab National Bank Baddi |
|
6) Date and brief description of instrument modifying the charge |
Hypothecation of assets to secure term loan agreement dated 18.01.2006 |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Enhancement from Rs. 13.100 millions to Rs. 41.600 millions, Rate of Interest – 12.75% First charge Hypothecation of all current and fixed assets of the company extent of operation = 100%, other terms as per agreement |
|
Name of the company |
HEALTH BIOTECH PRIVATE LIMITED |
|
Presented By |
Sh. Paramjit Arora, Director |
|
1) Date and description of instrument creating the change |
Deed of letter of credit DA basis agreement dated 18.01.2006 ILC/FLC [DA/DP] Agreement dt. 18.01.2006 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 7 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Bills accompanied with the transport receipt /GRs/ Bill of Lading / airways, bill evidences dispatch of material by the supplier, bill of exchange duly accepted by the party and other related documents. Goods, stocks, R. M. finished goods. Consumable stores & spares and entire book debts present and future |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
As per the agreement extent of operation |
|
5) Name and Address and description of the person entitled to the charge. |
Punjab National Bank Baddi |
|
6) Date and brief description of instrument modifying the charge |
-- |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
-- |
|
Name of the company |
HEALTH BIOTECH PRIVATE LIMITED |
|
Presented By |
Sh. Paramjit Arora, Director |
|
1) Date and description of instrument creating the change |
Term loan agreement |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 4.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Equitable mortgage of factory land & building comprising in land of 3 Bighas & 8 Bighas Comprised in Khewat No. 40, Khewat No. 56, Khasra No. 430, 431, 435, 440 revenue state of vill sandhali H.P. No. 199, Tehsil – Nalagarh, Distt. Solan |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Int. 11.25% p.a. |
|
5) Name and Address and description of the person entitled to the charge. |
Punjab National Bank Baddi |
|
6) Date and brief description of instrument modifying the charge |
Term loan agreement dated 18.01.2006 |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Enhancement from 5.900 millions to Rs. 12.900 millions. Rate of Interest – 12.75%, First charge on all current and fixed assets of the company Extent of operation = 100%, other terms as per agreement |
WEBSITE
DETAILS
Health
Biotech is a leading GMP Licensed Pharma manufacturer, engaged in manufacturing
of pharmaceutical products to the acute care market, independent community
pharmacies, etc., operating in the global arena.
They are a group of Pharma Companies headed by well experienced management in
diverse field of Pharma industry since last 20 years, well known to all the Top
Brass of industry having set up manufacturing facility located at Excise Free
Zone at Baddi, in Himachal Pradesh an investor friendly state in the Northern
part of India having most conducive environment for the Pharma industry where
the temperature remains quite low throughout the year.
Their GMP-license states that they are
authorized to manufacture and supply (worldwide) investigational medicinal
products for clinical trial purpose.
Their decades of their industry experience, along with ethical business
practices have earned us a global recognition. They are widely recognized and
reputed in medical field for their sincere efforts to provide safe, efficient
and reliable pharmaceutical to their clients.
Pharmaceuticals That They Deal In
They specialize in solid, semi-solid
and liquid pharmaceutical products, in strategic alliance with trustworthy and
reputed MNC's.
They offer their clients parental formulations, prefilled syringes, ß-Lactum
dry powder, lyophilized and terminally sterilized processes for single
products, small molecules and peptides/proteins and sterility assurance/
prevalidation.
The Pharmaceutical products manufactured by us are developed to improve
pharmacies' business operations. Further, their various value-added services
contribute to the value addition of their operations and in turn, enhance their
client's satisfaction.
They manufacturer generic and ethical pharmaceuticals, which have been
commercialized by other brands as well, to independent pharmacies, pharmacy
chains, pharmacy buying groups and physicians' clinics etc.
Anti Cancer
This is the latest section which has
been recently added & commercial operations have also been started.
Supplies have also been made to few customers & the product has been well
accepted in the market.
New Molecules
Recently, they have manufactured and
supplied the latest molecules such as Imepenem + Cilastatin, Meropenem,
Rabeprazole Sodium Sterile, Methyle Predisolone Succinate, Alpha-Beta Arthrator,
Nimodipine, etc. to their most esteemed customers.
The Plant is easily approachable
from the City Beautiful Chandigarh well known through out the world &
India's first planned city 40 K.M. from the city and 5 minutes distance from
Baddi bus stand on the main Baddi-Nalagarh high way. The Facility is well
attached through National Highway, Latest & well placed communication
system. The Broad gauge Railway Line is also at a distance of 20 KMS. Domestic
Airport is well located within a distance of 35 Kms near Chandigarh. Transport
of goods is easily available from Factory's five minutes distance.
Independently
Operating Analytical Laboratory
Their analytical laboratory is a certified
and is independently operating with advanced and sophisticated equipment. The
team of professionals at their laboratory has a strong commitment towards
quality assurance and provides excellence in analytical support.
Their Development Methods Include
Analysis of active ingredients as such in
blends and finished products
Quantitative and qualitative
characterization of impurities, residual solvents
Assays and dissolution tests of finished
products according to IP, EP, BP, USP guidelines
Analytical method validation and method
development services.
Clinical trial analytical support.
Pharmaceutical equivalence studies
Finished
product stability studies
Adequate
Warehousing Facility
They have a well-equipped
warehousing facility, built over an area of 14000 sq. ft. Their godowns are
located in different geographical positions like; Chandigarh, Zirakpur
(Punjab), Panchkula (Haryana) and Parwanoo (Himachal Pradesh).
These warehouses have been incorporated with all requisite amenities like
adequate lighting, ventilation, pest prevention, etc., required for convenient
storage.
Sound Financial
Resources
They
have sound financial resources and debt-free status.
Thus, they are equipped to meet challenges and rigid business requirements. They have a strong procurement channel.
The pharmaceutical products marketed by us are sourced from reputed, globally
recognized pharmaceutical manufacturers.
Their Strengths
Consistent Repeat Business Orders
Owing to their price competitiveness,
order production accuracy and customized services, they have been able to
attract repeat business. Besides, they also offer customized packaging,
inventory management and leading business solutions that enable their customers
to operate more efficiently and effectively.
Business Approach
As a manufacturer & exporter
of pharmaceutical products, their prime focus is to provide high quality,
reliable and thoroughly tested products, thereby achieving customer
satisfaction.
Packaging And
Delivery Solutions
Besides providing quality drugs,
they also provide customized packaging. They
ensure that the products reach the destination safely, for which reason they
facilitate shipping facilities, under high surveillance.
Their Achievements
During the financial year of 2005-06, they
created a benchmark, by touching a turn-over figure of over of Rs.216.8
millions and since then they have strategically retained the winning
position. They have been facilitated
with the best manufacturer of injectables award in the year 2005-06.
Clientele Across
The Globe
High-impact business solutions are their
core competencies and they are committed to achieve the highest level of
excellence in their business offerings, which enable their clients to achieve
their professional goals and initiatives.
Owing to their customer-oriented policies, they have been able to earn
appreciation and trust from their clients. Over the years, they have developed
a strong global client base. These clients have entrusted us to fulfil their
pharma requirements.
Based on above systems they have been able to work with the following India's
most reputed Pharma Companies along with Multinationals on regular & long
term basis. Some of them are mentioned below.
Cipla Limited
Cadila Limited
Lupin Limited
Wockhardt Limited
Zydus Cadila [German Remedies]
Hetero Drugs Limited
Unichem Laboratories
Lyka Labs Limited
Sanat Products Limited [Dabur Group]
Cachet Pharma [Alkam Group]
Ajanta Pharma
Ind Swift Limited
VHB Lifesciences
Medlay Pharma
Syncom Health Care Limited
Biochem Pharma
Elder Pharmaceuticals Limited
Approx.
30 medium sized companies having their own well knit marketing set up with in
India.
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.44.75 |
|
UK
Pound |
1 |
Rs.85.14 |
|
Euro |
1 |
Rs.57.55 |
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 |
NO |
|
--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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|