MIRA INFORM REPORT
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Report Date : |
22.11.2006 |
IDENTIFICATION DETAILS
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Name : |
AARTI
INDUSTRIES LIMITED |
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Registered Office : |
Plot Nos. 801, 801/23, G.I.D.C. Estate, Phase III,
Vapi – 396195, District Valsad, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
28.09.1984 |
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Com. Reg. No.: |
04-7301 |
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CIN No.: [Company Identification No.] |
L24100GJ1984PLC007301 |
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TAN No.: [Tax Deduction & Collection Account No.] |
SRTA02524E |
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PAN No.: [Permanent Account No.] |
AABCA2787L |
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Legal Form : |
Public Limited Liability
Company The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing, Importing
and Exporting of Organic Chemicals. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 9250000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established pharmaceutical company having satisfactory track. It is
controlled and managed by Gogri family who are resourceful and experienced businessmen.
Their trade relations are fair. Payments are usually correct and as per
commitments. The company can be
considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office/
Factory : |
Plot Nos. 801, 801/23, GIDC
Estate, Phase III, Vapi – 396 195, District Valsad, Gujarat, India |
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Tel. No.: |
91-22-25690411 / 2 / 3 /
25918195 |
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Fax No.: |
91-22-25904806 /
25653186-87 |
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E-Mail : |
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Website : |
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Corporate Office: |
Udyog
Kshetra, II Floor, L.B.S. Marg, Mulund – Goregaon Link Road, Mulund (West),
Mumbai – 400 080, Maharashtra, India |
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Tel. No. : |
91-22-65976666
/ 25918195 |
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Fax No. : |
91-22-25653234
/ 25653185 |
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Factory: |
·
Plot Nos. 902, GIDC Estate,
Phase II, Vapi – 396 195, District Valsad, Gujarat, India ·
Plot Nos. 752-753-754
Sarigam Industrial Area, Sarigam, Taluka Umargaon, District Valsad, Gujarat,
India ·
Plot Nos. 758/1,
758/2, Jhagadia Mega Estate, Village Kapalsadi, Taluka Jhagadia, District
Bharuch, Gujarat, India ·
Plot No. K-18, MIDC,
Tarapur, District Thane, Maharashtra, India ·
Plot No. E-50, MIDC,
Tarapur, District Thane, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Chandrakant V. Gogri |
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Designation : |
Chairman |
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Name : |
Mr. Rajendra V. Gogri |
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Designation : |
Vice
Chairman and Managing Director |
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Name : |
Mr. Shantilal T. Shah |
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Designation : |
Vice
Chairman |
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Name : |
Mr. Parimal H. Desai |
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Designation : |
Whole
time Director |
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Name : |
Mr. Ramdas M. Gandhi |
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Designation : |
Independent
Director |
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Name : |
Mr. Vijay H. Patil |
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Designation : |
Independent
Director |
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Name : |
Mr. Laxmichand K. Jain |
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Designation : |
Independent
Director |
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Name : |
Mr. Manoj M. Chheda |
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Designation : |
Whole
time Director |
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Name : |
Mr. Rashesh C. Gogri |
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Designation : |
Whole
time Director |
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Name : |
Ms. Hetal Gogri Gala |
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Designation : |
Whole
time Director |
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Name : |
Mr. Kirit R. Mehta |
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Designation : |
Whole
time Director |
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Name : |
Mr. Murlidhar R. Mondkar |
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Designation : |
Director
[from 27.07.2002 to 27.03.2003] |
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Name : |
Mr. Haresh K. Chheda |
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Designation : |
Independent
Director [w.e.f. 27.03.2003] |
KEY EXECUTIVES
|
Name: |
Mr. Mohan P. Sonar |
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Designation: |
Company
Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters - Indian |
32724612 |
44.95 |
|
Bodies Corporate |
1788669 |
2.45 |
|
NRIs/OCBs |
389064 |
0.53 |
|
Banks, Financial
Institutions |
7500 |
0.01 |
|
Mutual Funds |
8223662 |
11.29 |
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FII |
3665654 |
5.03 |
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Public |
26010263 |
35.74 |
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Total |
72809424 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing, Importing
and Exporting of Organic Chemicals. |
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Products : |
Product Description Para
Nitro Chloro Benzene ITC Code 29049005 Product Description Ortho
Nitro Chloro Benzene ITC Code 29049004 Product Description Sulphuric
Acid ITC Code 28070001 Product Description Quinalphos ITC Code 38081021 Product Description Carbendizum ITC Code 29242909 Product Description NN
Dhe MCA ITC Code 29241019 Para Nitro Chloro Benzene
(PNCB) |
PRODUCTION STATUS
|
Particulars |
|
Installed Capacity (MT per annum) |
Actual Production (Kgs) |
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Nitro Chloro Benzenes (NCBs) |
|
60000 |
26612484 |
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Sulphuric Acid and Allied
Products |
|
200000 |
199386614 |
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Ortho Phenylene Diamine
(OPDA) |
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N.A. |
1329090 |
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Quinalphos |
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N.A. |
621050 |
GENERAL INFORMATION
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No. of Employees : |
2200 |
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Bankers : |
·
Bank of Baroda Govind
Kunj, 99 J. N. Road, Mulund (West), Mumbai – 400 080, Maharashtra, India ·
Union Bank of India ·
State Bank of India ·
Bank of India B
& C Wing, Mittal Tower, N. P., Mumbai – 400 021, Maharashtra, India ·
Corporation Bank ·
HDFC Bank Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Citi Bank Limited ·
ABN Amro Bank ·
Standard Chartered
Bank ·
Export – Import Bank
of India ·
UTI Bank Limited |
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Facilities : |
Secured Loans 31.03.2006 31.03.200 Term Loan From Scheduled Banks 945.671 Working Capital Loan --From Scheduled Banks 1937.534 |
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Banking Relations : |
Good |
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Auditors : |
Parikh Joshi & Kothare Chartered Accountants, 49/2341,
Shri Sai Kripa Co-operative Housing Society, M. H. B. Colony, Gandhi Nagar, Bandra
(East), Mumbai – 400 051, Maharashtra, India |
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Associates: |
·
Ganesh Polychem
Limited ·
Perfect Enviro Control
System Limited ·
Aarti Biotech Limited ·
Aarti Drugs Limited ·
Alchemie Dyechem
Private Limited ·
Alchemie Pharma Chem
Limited ·
Alchemie Financial
Services Limited ·
Valiant Chemical
Corporation ·
Alchemie Laboratories ·
Amulya Bio-Products ·
Suyash Chemicals ·
Ganesh Chemical
Industries ·
Surfactant
Specialities Limited ·
Nascent Chemical
Industries Limited ·
Anushakti Chemicals
& Drugs Limited ·
Gogri & Sons
Investment Private Limited ·
Alchemie Industries ·
Alchemie Leasing &
Financing Private Limited ·
Arihant Industries |
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Subsidiaries: |
·
Aarti Corporate
Services Limited ·
Alchemie (Europe)
Limited 7-9, St. Mary's Place,
Bury Lanes, Bl9 ODZ, England ·
Aarti Healthcare
Limited Ø
Avinash Drugs Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
90000000 |
Equity Shares |
Rs. 5/- each |
Rs. 450.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
72809424 |
Equity Shares |
Rs. 5/- each |
Rs. 364.047 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 |
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1] Share Capital |
364.047 |
364.047 |
121.349 |
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2] Reserves & Surplus |
2004.085 |
1693.852 |
1609.051 |
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NET WORTH |
2368.132 |
2057.899 |
1730.400 |
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LOAN FUNDS |
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1] Secured Loans |
2883.205 |
1835.752 |
1897.927 |
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2] Unsecured Loans |
120.956 |
413.372 |
143.948 |
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TOTAL
BORROWING |
3004.161 |
2249.124 |
2041.875 |
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Deferred Tax Liability |
260.208 |
196.995 |
167.256 |
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Equity Share Warrants |
18.456 |
0.000 |
0.000 |
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TOTAL
|
5650.957 |
4504.018 |
3939.532 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2295.350 |
1861.449 |
1735.377 |
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Capital work-in-progress |
279.752 |
186.228 |
20.172 |
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Pre-operative Expenses |
0.000 |
0.194 |
0.448 |
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INVESTMENTS |
247.421 |
243.310 |
81.325 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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Sundry Debtors |
4282.512 |
3357.688 |
2652.728 |
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Cash & Bank Balances |
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Other Current Assets |
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Loans & Advances |
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Total
Current Assets |
4282.512 |
3357.688 |
2652.728 |
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Less : |
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|
Current Liabilities &
Provisions |
1469.337 |
1162.972 |
557.606 |
Total Current Liabilities
|
1469.337 |
1162.972 |
557.606 |
|
Net Current Assets |
2813.175 |
2194.716 |
2095.122 |
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MISCELLANEOUS EXPENSES |
15.259 |
18.121 |
7.088 |
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TOTAL
|
5650.957 |
4504.018 |
3939.532 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
8130.073 |
6954.646 |
5281.580 |
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|
|
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Profit/(Loss) Before Tax
|
716.157 |
582.268 |
500.616 |
Provision for Taxation
|
162.300 |
110.000 |
105.000 |
Profit/(Loss) After Tax
|
553.857 |
472.268 |
395.616 |
|
|
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Export Value
|
3067.590 |
2218.841 |
1351.431 |
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Import Value
|
642.661 |
388.615 |
272.076 |
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|
|
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Total Expenditure
|
7192.047 |
6171.760 |
4780.963 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
|
Sales Turnover |
|
1991.600 |
1864.600 |
|
Other Income |
|
19.400 |
8.900 |
|
Total Income |
|
2011.000 |
1873.500 |
|
Total Expenditure |
|
1741.900 |
1655.100 |
|
Operating Profit |
|
269.100 |
218.400 |
|
Interest |
|
65.600 |
72.200 |
|
Gross Profit |
|
203.500 |
146.200 |
|
Depreciation |
|
62.900 |
70.000 |
|
Tax |
|
17.500 |
7.000 |
|
Reported PAT |
|
106.600 |
52.200 |
Notes:
2006-06 Quarter 1
The above results, reviewed by the
Audit Committee, have been taken on record by the Board of Directors at their
meeting held on 01.07 2006. 2. The Non Promoter's shareholding are based on
amended definition of Promoters vide SEBI (Substantial Acquisition of shares
and take overs) (Second Amendment) Regulations 2006. 3. Figures for the
previous periods have been regrouped wherever necessary. Status of Investor
Complaints for the quarter ended June 30, 2006 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
2006-09 Quarter 2
Expenditure Includes (Increase)/Decrease
in inventory Rs (74.60)million Consumption of Raw Materials Rs 1015.80 million
Staff Cost Rs 37.20 million Other Expenditure Rs 676.70 million Tax Includes
Provision for Taxation(Including Fringe Benefit Tax) Rs 7.00 million Provision
for Deferred Tax Rs 17.00 million EPS is Basic & Diluted Status of Investor
Complaints for the quarter ended September 30, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 12
Complaints disposed off during the quarter 12 Complaints unresolved at the end
of the quarter Nil 1. The above results, reviewed by the Audit Committee, have
been taken on record by the Board of Directors at their meeting held on
November 08, 2006. 2. The Figures for the previous period have been regrouped
and rearranged wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
1.19 |
1.13 |
1.12 |
|
Long
Term Debt Equity Ratio |
0.49 |
0.51 |
0.48 |
|
Current
Ratio |
1.23 |
1.36 |
1.36 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.27 |
2.30 |
1.97 |
|
Inventory
|
7.20 |
7.90 |
7.13 |
|
Debtors |
5.09 |
5.53 |
4.64 |
|
Interest
Cover Ratio |
4.39 |
5.11 |
5.30 |
|
Operating
Profit Margin (%) |
14.72 |
13.63 |
15.78 |
|
Profit
Before Interest and Tax Margin (%) |
11.88 |
10.67 |
12.38 |
|
Cash
Profit Margin (%) |
9.13 |
9.48 |
10.57 |
|
Adjusted
Net Profit Margin (%) |
6.29 |
6.52 |
7.18 |
|
Return
on Capital Employed (%) |
19.23 |
17.98 |
18.29 |
|
Return
on Net Worth (%) |
22.17 |
23.36 |
22.46 |
STOCK PRICES
|
Face Value |
Rs.10/-
|
|
High |
Rs.30.80/- |
|
Low |
Rs.29.50/- |
LOCAL AGENCY FURTHER INFORMATION
History
Subject
was promoted by Mr. Chandrakant V. Gogri and Associates. The flagship of the Alchemie
group, it was the first to go public in February, 1992. At present, it
manufactures Para Nitro Chloro Benzene (PNCB) and Ortho Nitro Chloro Benzene
(ONCB). It’s subsidiaries are Alchemie Drugs and Aarti Corporate Services
Limited. Salvigor Laboratories, a group company manufacturing Dimethyl Sulphate
Sulphuric Acid and allied products, was merged with company in October, 1994.
The
company commenced operations at Sarigam in 1986. During 1990, it first expanded
the capacity of PNCB/ONCB (organics division) from 1200 tpa to 4500 tpa. Its
maiden public issue financed manufacturing facilities for high value-added
downstream products based on PNCB/ONCB. During the year 1994-95, it further
expanded its organics division in four phases. It is recognised Export House,
the company offers a wide range of value-added intermediate products to its
international customers.
During
1998-99, the company has enhanced its installed capacity of PNCB / ONCB from
15000 tpa to 22000 tpa which further increased its capacities to 30000 tpa in
the year 1999-2000.
The
company has commissioned manufacturing operations at its new unit at Bharuch.
In this project the Nitration plants alongwith Distillation and Crystallisation
sections has been commissioned. The reduction plant utilising advance
technology has been commissioned in April, 2001.
The
company has set up two Research and Development Centres – one at Turbhe and the
other at Vapi, Gujarat. The Research and Development activities has already
commenced at both these centres, which are expected to give new products and
improvement in the existing product efficiency. The company also expects to
commercialise the same in the near future.
The
High Court, Mumbai has approved Alchemic Organics (AOL) amalgamation with the
company. The board fixed an exchange ratio of 1 equity share of the company for
every 4 equity shares of AOL. Accordingly AOL was amalgamated with company
during 2002. The expansion of GIDC Jhagadia for manufacturing Nitro Chlro
Benzenes was nearing completion. The company is also having plans to set up
Power Generation Plant at Vapi and also proposes to enter into the field of
manufacturing SSP which is a widely used fertiliser. The estimated cost of the
above said project was pegged to be around Rs. 250 millions.
Sarigam and Vapi units have been awarded ISO 9002
Certification during the year 2002-03.
Vapi Plant has started the commercial production of Single Super
Phosphate(SSP) in 2003.
The company has decided to amalgamate its subsidiaries Aarti Healthcare
Ltd (AHL) and Avinash Drugs Ltd with the company in December 2004. According to
the scheme of amalgamation, i) In case of AHL, One Equity share of Rs.10/- each
will be issued as fully paid up at par of the company for every Two Equity
shares of Rs.10/- each fully paid up held in AHL ii) In case of Avinash Drugs
Ltd, One Equity share of Rs.10/- each will be issued as fully paid up at par of
the company for every Fifteen Equity shares of Rs.100/- each fully paid up held
in Avinash Drugs. Further,no equity shares will be issued for equity shares
held by Aarti Industries in AHL and Avinash Drugs as the same will be
cancelled.
DIVIDEND
The company had declared and paid 1st interim dividend of Rs. 1.70 ps. @17% per
share (of Rs. 10/- each) and 2nd interim dividend of Rs.0.70 ps.
@14% per share (of Rs. 5/- each). The directors are pleased to recommend a
final dividend of 40 ps. @8% per share (of Rs. 5/- each) for the year ended
31.03.2006. Total amount of Dividend pay out for the financial year 2005-06,
subject to declaration of final dividend at the forthcoming Annual General
Meeting, would be Rs. 142 millions as compared to Rs. 122.600 millions for the
previous year.
OPERATIONS
During the year under report, the company has achieved Sales turnover of Rs.
7861.800 millions (Previous year : Rs. 6854.700 millions) registering a growth
of 14.69%. Operating profit before Interest, Depreciation and Tax was Rs.
1094.200 millions (Previous year: Rs. 892.400 millions) registering a growth of
22.61%.
Profit before tax was Rs. 716.200 millions (Previous year Rs. 582.200 millions)
registering a growth of 23%. Profit after tax was Rs. 490.600 millions
(Previous year: Rs. 442.500 millions) registering a growth of 10.87%. The
Company has started Block-I of its Tarapur USFDA Compliant facilities and has
started exporting validation batches in the regulated market.
In addition to the Single Super Phospate (SSP) fertilizer manufactured from a
by product, the Company also has setup Di-calcium Phosphate a veterinary item
from Dilute sulphuric acid.
EXPORTS
Exports increased from Rs. 2550.400 millions to Rs. 3416.100 millions
(Inclusive of Export through export trading houses and relevant export
benefits) registering a growth of 33.94%. The constant efforts are being made
to increase the exports.
The company has been awarded star exporter Award for the year 2004-05 by 'The
Gujarat Dyestuffs Manufacturers' Association' for earning Highest foreign
Exchange from Direct Export of self Manufactured Dyes & Dyes Intermediates.
The company has joint venture
with :-
·
Ganesh Polychem Private
Limited
·
Perfect Enviro Control
System Private Limited
The
company’s fixed assets of important value include leasehold land, building,
plant & machinery, furniture, fixtures & office equipment and vehicles.
WEBSITE
DETAILS
The first unit of Aarti group, Alchemie
Laboratories,
commenced commercial production of Dimethyl Sulphate (DMS) in the year 1975. Today, Aarti has acquired world-class expertise in
the development and manufacturing of basic bulk chemicals, dyes &
pigment intermediates, pharmaceuticals & agrochemicals along with their
intermediates, rubber chemicals, surfactant intermediates and specialty
chemicals. Aarti
is amongst the largest producers of Benzene based basic and intermediate chemicals in India.
Aarti has attained a total
turnover of US $ 189 million in the year April 2003 - March 2004 with flagship
companies Aarti Industries Limited
(AIL) & Aarti Drugs Limited (ADL) listed on Stock Exchanges. Aarti has a subsidiary Aarti Healthcare Limited (AHCL), which is engaged in manufacturing of
Active pharma ingredients ranging from Ace Inhibitors, Broncodialators to
Steroids.
AARTI has
manufacturing sites at Gujarat, India
(Vapi, Sarigam & Jhagadia) and at Maharashtra,
India (Tarapur & Dombivli).
Recognizing the importance of research, AARTI has established three
full-fledged DSIR (Dept. of Scientific
& Industrial Research)-Government of India recognized R & D centers,
which carry innovative product and process development work.
AARTI has the privilege of
catering to the requirements of leading manufacturers of dyes, pigments,
pharmaceuticals, agrochemicals and rubber chemicals in countries such as USA, UK, Germany, Spain, Italy, Switzerland,
Belgium, Japan, Korea, China, Russia, etc. Aarti also has
representatives in USA & a
subsidiary company in UK to
provide better services to its Export Customers.
API Division of Aarti Industries Limited, Flagship Company of USD 189 Million “Aarti Group”, since 1976, exporting to
more than 65 countries, including Developed and developing Markets.
API Division manufacturing APIs, in niche segments
Viz: Anti – Hypertensive, Anti –Asthamatic, Anti-Cancer, Anti- Inflammatory / Anti-
Allergic, Anti- Diabetic, Anti- Depressants, Anti- Thalassaemic.
Manufacturing Units at Dombivali & Tarapur , in
Maharashtra State of India, will be WHO GMP Approved facilities by End
December, 2003.
Brand New facility upcoming at Tarapur & Vapi,
per US-FDA Standard.
In house R & D Center, with Ultra modern ,
sophisticate Instruments, equipped with a Team of Highly skilled scientists,
working round the clock on New Products and Process Improvements.
Expected to receive CoS for Ramipril, Budesonide,
Venlafaxine, in year 2004, for marketing products in Western Europe.
E-DMFs in CTD Formats available for most of the
commercialized molecules.
All products match specifications of BP / USP / EP,
as applicable.
Esteemed clients in Domestic Market, serviced by us
are, Ranbaxy, Sun Pharma, Cipla, Aristo, Astra- Zeneca Pharma India, Maral
Labs., Cadila Healthcare, German Remedies, Intas, Biotrans, Dr. Reddys
Laboratory (DRL)
Per individual client’s need, can also provide
“Tailor Made Products” for physical parameters viz: Particle size ( micronised
material), Bulk Density etc., as well Impurity profile, Methods for Testing
etc.
They also offer Intermediates of most of their APIs
Products under Patent will NOT be sold until Patent
expiration in Buyer’s Country. Purchase of Patented Product will be sole
responsibility of the Buyer.
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 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
50 |
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 |