MIRA
INFORM REPORT
|
Report Date : |
15.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
HARRISONS
MALAYALAM LIMITED |
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Registered Office : |
24/1624
Bristow Road, Willingdon Island, Kochi – 682003, Kerala |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.01.1978 |
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Com. Reg. No.: |
09-2947 |
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CIN No.: [Company
Identification No.] |
L01119KL1978PLC002947 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNH00049A |
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Legal Form : |
A
public limited liability company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer,
Exporter and Trading of Tea, Coffee, Rubber, Clearing, Shipping and
Biotechnology |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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
12000000 |
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Status : |
Good |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
The
company is a part of RPG Group, a medium sized industrial house. Trade
relations are fair. Financial position is good. Payments are correct and as
per commitments. The
company is doing well. It can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
24/1624
Bristow Road, Willingdon Island, Kochi – 682003, Kerala |
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Tel. No.: |
91-484-2668023 |
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Fax No.: |
91-484-2667032 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. Sanjiv Goenka |
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Designation : |
Chairman |
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Name : |
Mr. P.K. Kurian |
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Designation : |
Director
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Name : |
Mr. S. Samuel |
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Designation : |
Director
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Name : |
Mr. Haigreve Khaitan |
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Designation : |
Director
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Name : |
Mr. P.K. Chowdhary |
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Designation : |
Director
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Name : |
Mr. G. Momen |
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Designation : |
Director
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Name : |
Mr. Umang Kanoria |
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Designation : |
Director
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Name : |
Mr. Prabhakar Dev |
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Designation : |
Managing Director |
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Date of Birth |
56 Years |
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Qualification |
M.Sc. (Nuclear Physics) P G Diploma in Business Administration from IIM, Ahmedabad |
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Experience |
33 Years |
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Date of Employment |
27-07-2000 |
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Last Employment |
Royal Packaging and Industries Van Leer
NV |
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Name : |
Mr. N. Dharmaraj |
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Designation : |
Vice-President |
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Date of Birth |
54 Years |
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Qualification |
B.Sc. |
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Experience |
32
Years |
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Date of Employment |
01-09-1999 |
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Last Employment |
Hindustan Lever Limited |
KEY EXECUTIVES
|
Name
: |
Mr. P.A. Krishnamoorthy |
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Designation
: |
Chief Accountant & Company Secretary |
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MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Foreign Companies |
4114026 |
22.29 |
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Non Resident Individuals |
54471 |
0.30 |
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Mutual Funds |
298299 |
1.62 |
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Nationalised Banks |
535 |
— |
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Insurance Companies |
465140 |
2.52 |
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Financial Institutions |
1075 |
— |
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Other Bodies Corporate |
6465488 |
35.03 |
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Directors and their relatives |
91560 |
0.50 |
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Resident Individuals |
6964811 |
37.74 |
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Total |
18455405 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer,
Exporter and Trading of Tea, Coffee, Rubber, Clearing, Shipping and
Biotechnology |
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Products : |
v
Black
Tea – 09-02-30 v
Natural
Rubber Latex – 40-01-10 v
Somked
Rubber Sheets – 40-01-21 |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Made Tea |
MT |
-- |
-- |
15902.619 |
|
Rubber |
MT |
-- |
-- |
2914.402 |
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Steel Fabrication |
MT |
6960 |
6960 |
-- |
|
Centrifuge Rubber Latex |
MT |
-- |
6275 |
4577.504 |
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Shrimp Farm |
MT |
-- |
123 |
-- |
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Shrimp Hatchery |
Million |
-- |
50 |
-- |
GENERAL
INFORMATION
|
Customer |
v
Alberto Bertuzzi SpA, Italy v
BPL India Group v
Cochin Port Trust v
Cochin Refineries v
Electronics Technology Parks, Trivandrum v
Fertilizers& Chemicals Limited (FACT), Cochin v
Hindustan Steelworks Construction Limited., Calcutta v
Greater Cochin Development Agency (GCDA) v
Indian Rare Earths Limited, Kollam v
Kerala Horticulture Development Programme, Cochin v
McDowell & Company Limited. v
Mineral Technologies Limited, Australia v
National Thermal Power Corporation v
Neuman Equipment Pty Limited, Australia v
Oil Palm India Limited. v
Tata Tea Limited. v
Cochin International Airport - Kochi v
Kerala Industrial Infrastructure Development Corporation (KINFRA) v
Kerala Industrial & Technical Consulting Organisation (KITCO) v
Tamilnadu Tea Plantation Corporation Limited. v
Cochin Special Economic Zone v
Kerala Tourism Development Corporation (KTDC) v
Travancore Titanium products Limited. v
Cochin Cements Limited. v
English Indian Clays Limited. v
Airport Authority of India |
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No. of Employees : |
3000 |
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Bankers : |
v
State Bank of India v
State Bank of Travancore v Centurion
Bank of Punjab Limited |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
Lovelock & Lewes Chartered Accountants |
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Address: |
32, Khader Nawaz Khan Road, Nungambakkam, Chennai - 600 006 |
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Associates/Subsidiaries : |
v
Sentinel Tea and Exports Limited. v
Harrisons Agro- Products Limited. v
Harrisons Rubber Products Limited. v Harrisons Malayalam Financial Services Limited. |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 300.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
18455405 |
Equity
Shares |
Rs. 10/- Each |
Rs. 184.554 Millions |
|
Less |
Allotment
Money in Arrears |
|
Rs. 0.016 Millions |
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Total |
|
Rs. 184.538 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
SHAREHOLDERS FUNDS |
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|
|
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1] Share Capital |
184.538 |
184.537 |
184.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2832.332 |
2267.549 |
1902.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3016.870 |
2452.086 |
2086.500 |
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LOAN FUNDS |
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1] Secured Loans |
953.211 |
439.082 |
612.200 |
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2] Unsecured Loans |
24.383 |
48.642 |
65.500 |
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TOTAL BORROWING |
977.594 |
487.724 |
677.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3994.464 |
2939.810 |
2764.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1834.508 |
1955.376 |
2055.200 |
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Capital work-in-progress |
6.612 |
79.360 |
5.400 |
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INVESTMENT |
121.089 |
495.863 |
498.100 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
|
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Inventories |
108.671
|
119.416 |
111.500 |
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Sundry Debtors |
84.327
|
73.405 |
82.200 |
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|
Cash & Bank Balances |
24.668
|
19.944 |
35.000 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
2210.944
|
531.781 |
504.300 |
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Total Current Assets |
2428.610
|
744.546 |
733.000 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
267.142
|
265.271 |
470.600 |
|
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Provisions |
129.213
|
70.064 |
60.900 |
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Total Current Liabilities |
396.355
|
335.335 |
531.500 |
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Net Current Assets |
2032.255
|
409.211 |
201.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
4.000 |
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TOTAL |
3994.464 |
2939.810 |
2764.200 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1513.949 |
1472.179 |
1391.700 |
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|
|
|
|
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Profit/(Loss)
Before Tax |
706.938 |
484.269 |
52.300 |
|
Provision
for Taxation |
6.835 |
7.700 |
0.000 |
|
Profit/(Loss)
After Tax |
700.103 |
476.569 |
52.300 |
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Export
Value |
25.193 |
4.012 |
NA |
|
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Import
Value |
1.021 |
1.445 |
NA |
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|
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Total
Expenditure |
1460.870 |
1314.505 |
1385.800 |
QUARTERLY
|
PARTICULARS |
|
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
|
Sales Turnover |
|
383.800 |
512.500 |
|
Other Income |
|
2.700 |
2.100 |
|
Total Income |
|
386.500 |
514.600 |
|
Total Expenditure |
|
347.100 |
428.700 |
|
Operating Profit |
|
39.400 |
85.900 |
|
Interest |
|
27.100 |
31.000 |
|
Gross Profit |
|
12.300 |
54.900 |
|
Depreciation |
|
7.100 |
7.200 |
|
Tax |
|
1.800 |
1.900 |
|
Reported PAT |
|
3.400 |
45.800 |
200606 Quarter 1 - Expenditure Includes (Increase) / Decrease in Stock in Trade Rs. (39.600)million Consumption of Materials Rs. 140.600 million Staff Cost Rs. 151.700 million Other Expenditure Rs. 94.400 million Tax Indicates Provision for Current Tax Rs. 0.300 million Fringe Benefit Tax Rs. 1.500 million EPS is Basic and Diluted 1. Profitability for the quarter was affected partially due to unremunerative tea prices and the 30 days strike in Rubber Estates. 2. The Auditors have stated their inability to express an opinion on the carrying amount of investments in unquoted shares of a wholly owned subsidiary company, whose net worth is eroded and also the advances given to the subsidiaries and certain receivables. Management Comments The unquoted investments in the wholly owned subsidiary are strategic and long-term in nature and there is no permanent diminution in the value of such investments. Further the advances given to the subsidiary companies are for strategic investments to be made by the subsidiary companies. Accordingly no provision is considered necessary in respect of such investments/advances. Adequate provisions have been made for all doubtful debts. 3. Provision for Taxation has been considered under Section 115JB of the Income Tax Act, 1961. Any provision for Deferred tax would be made at the end of the financial year. 4. Government of Kerala has issued Notification revising the Minimum Wages of Plantation workers, which has been stayed by the Hon'ble High Court of Kerala. An amount of Rs. 19.877 million has been disbursed on 08.07.2006 as on account advance, which has not been expensed and kept under loans and advances and considered as recoverable by the management, pending disposal of the case. 5. Previous quarters/years figures have been regrouped wherever necessary to conform to the classification for the current quarter/year. 6. The Statutory Auditors have carried out a Limited Review of Accounts for the quarter ended 30.06.2006 7. The above results were reviewed by the Audit Committee on 25.07.2006 and approved by the Board of Directors at its meeting held on 25.07.2006.
200609 Quarter 2 - EPS is Basic and Diluted Status of Investor Complaints for the quarter ended 30.09. 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 21 Complaints disposed off during the quarter 21 Complaints unresolved at the end of the quarter Nil 1. The companys business being seasonal in nature, the results are not fully indicative of the expected financial results for the year. 2. The auditors have stated thier inability to express an opinion on the carrying amount of investments in unquoted shares of a wholly owned subsidiary company. Management Comments:- The unquoted investments including in the wholly owned subsidiary are strategic and long-term in nature and there is no permanent diminution in the value of such investments. Further the advances given to the subsidiary Company are for strategic investments to be made by the subsidiary Company. Accordingly no provision is considered necessary in respect of such investments / advances.Adequate provision have been made for all doubtful debts. 3. Provision for Taxation has been considered under Section 115 JB of the Income Tax Act, 1961. Any provision for Deferred tax would be made at the end of the financial year. 4. Government ofkerala has issued a Notification revising the Minimum Wages of Plantation workers, which has been stayed by the Hon'ble High court of kerala. An amount of Rs.19.877 Millions has been disbursed on 08.07.2006 as 'an account advance' which has not been expensed. The said advance included in Loans & advances is considered as recoverable by the management pending disposal of the case. 5. Previous Quarters / Years figures have been regrouped wherever necessary to conform to the classification for the current quarter. 6. The Statutory Auditors have carried out a Limited Review of Accounts for the quarter ended 30.09.2006. 7. The above results were reviewed by the Audit Committee on 31.10.2006 and approved by the Board of Directors at its meeting held on 31.10. 2006.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.57 |
0.80 |
1.53 |
|
Long Term Debt Equity Ratio |
0.36 |
0.41 |
0.82 |
|
Current Ratio |
2.51 |
1.03 |
0.86 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.37 |
1.34 |
1.28 |
|
Inventory |
12.87 |
12.36 |
13.30 |
|
Debtors |
18.61 |
18.35 |
13.35 |
|
Interest Cover Ratio |
0.97 |
3.05 |
1.50 |
|
Operating Profit Margin (%) |
8.57 |
17.28 |
13.76 |
|
Profit Before Interest and Tax Margin (%) |
6.49 |
15.40 |
11.56 |
|
Cash Profit Margin (%) |
1.48 |
12.07 |
6.05 |
|
Adjusted Net Profit Margin (%) |
(0.59) |
10.19 |
3.85 |
|
Return on Capital Employed (%) |
4.73 |
15.76 |
12.08 |
|
Return on Net
Worth (%) |
(0.68) |
17.87 |
9.16 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.86.00/- |
|
Low |
Rs.83.55/- |
LOCAL AGENCY
FURTHER INFORMATION
History
The first of their Tea Plantations was established nearly 200 years ago as Tea
was first planted on the slopes of the mountains that form the backbone of
South India. (The Western Ghats). Over the next 100 years. Tea Plantations
became a major activity transforming the landscape of these mountains, turning
them into the manicured tea gardens they see today and providing employment and
subsequently a reasonable standard of living, to the local population. In the
early 1900's these estates saw consolidation and in 1907 Harrisons &
Crosfield, whhich was set up as Tea Traders in 1857 in Liverpool, bought and
established Malayalam Plantations Limited. As Owners and Managing Agents of
Malayalam Plantations, Harrisons & Crosfield further consolidated their
land holdings, including plantations in Rubber, to produce the highest quality
of both Tea and Rubber in this part of the World. About 15 years ago, changing
priorities of Harrisons & Crosfield saw the RPG Group, one of the largest
business houses in India, take control of this Company. Harrisons &
Crosfield in India and Malayalam Plantations were merged to establish Harrisons
Malayalam Limited
Today, Harrisons Malayalam Limited., as the largest Plantation Company
in South India, leads the industry in scientific and modern agriculture and
manufacture. The Company also preserves its proud heritage of looking after its
employees and evolving them with modern HR practices.
Co-existing with Nature, plantations in South India have a proud
ecological history in harmony with nature. Their lands borders virgin tropical
forest and, as such, they operate with a little "helping hand" from
wild life. It is not uncommon for elephants to ramble in their rubber
plantations or dig up tea bushes. The old bungalows while able to protect the
occupiers from such ventures do regularly have panthers looking for a pet dog
meal!
Performance
During the year under
review, the Company recorded a turnover (including other income) of Rs.1526.800
Millions, (previous year Rs.1465.500 Millions). Healthy rubber prices
throughout the year under review partly compensated for the significant decline
in the price realised for tea. There was further progress in the Company's
efforts towards better labour productivity through reorganised work and
incentive schemes. Manufacture of both Tea and Rubber through bought raw
material contributed towards improving the turnover.
Tea
Tea prices in South
India witnessed a decline from April 2005 and the average for the financial
year was Rs.42.38 per kg – a drop of over Rs.6 per kg from that of the previous
year. The disparity between the price realized by the producers and the price
paid by the consumer is still to be addressed by the market regulator though
there is a widespread acceptance of the issue. As in earlier years, Surianalle
teas continued to fetch the highest price in Cochin Auction. A total quantity
of 2369 MT of Tea was exported mainly to Russia, Kenya and U.K through the
Company's wholly owned subsidiary, Sentinel Tea & Exports Limited.
Rubber
Rubber prices ruled at
high levels throughout the year. RSS IV price recorded a high of Rs.83.75 in
March 2006 for the financial year and is currently ruling at Rs.90.50 per kg.
Engineering
The Engineering
Division registered a turnover of Rs.80.000 Millions as against Rs.47.300
Millions in the previous year. The order book position is healthy and the
division is expected to perform better in terms of turnover and profitability
in 2006-2007.
Sale of Estate
Sale of estate
properties of the Company during the year includes sale of a Rubber Estate
(Cheruvally) admeasuring 916 hectares situated in Erumeli and Manimala
villages, Kanjirapally Taluk, Kottayam District, Kerala, as a going concern for
a total consideration of Rs.630.000 Millions after obtaining approval of the
Shareholders under Section 293(1 )(a) of the Companies Act, 1956.
Fixed Assets
v
Land
v
Building
v
Plant
& machinery
v
Furniture
& Fixture
v
Water
v
Vehicles
Company Profile
Harrisons Malayalam Limited (HML) is the most successful integrated
agricultural operation in South India. One of the oldest - with a history that
goes back over hundred and fifty years - it has been a pioneer in corporate
farming and has, over this period, established and run plantations for Tea,
Rubber, Cocoa, Coffee and a wide variety of Spices.
Today
the company cultivates about 14,000 ha and processes produce from other
farmlands in its neighborhood. Rubber, Tea and Pineapple, respectively on 7,400
ha, 6,000 ha and 1000 ha of own farmland give the company its primary products
.
With a
production of about 9,000 tonnes of Rubber, 20,000 tonnes of tea and 25,000
tonnes of Pineapple, HML is South India's largest agriculture operation.
The company also produces smaller quantities of a variety of other exotic
horticultural crops like Areca nut, Banana, Cardamom, Cocoa, Coffee, Coconut,
Pepper and Vanilla as well as limited quantities of
Organic tea and
spices.
Their
operations are spread over 20 Estates, 8 rubber factories and 12 tea factories
along with a number of blending and processing units in the three southern
states of Kerala, Karnataka and Tamil Nadu.
The company also operates a full-fledged tissue culture laboratory for its own
use as well as for production and sale of both crop and exotic ornamental
plants.
The product range includes both CTC and Orthodox Tea, Rubber in concentrated
rubber latex, crepe, block and sheet rubber forms. Fresh Pineapple is the other
large produce.
As a dominant player in tea exports from South India over its entire history, a
position that it maintains even today, the company is a source for quality teas
for all the big names in the Tea industry in Europe.
In the local market the company sells its own brands of tea. Their brands -
Harrison's Gold, Mountain Mist, Surya and Spencer's have a significant market
share in the states of Kerala, Tamil Nadu and Karnataka.
Being the industry leader in natural rubber production, HML is known for its
high quality natural rubber in the local and export markets.
Exotic horticulture being a labour intensive activity the company has been a
major employer of people. It today has a workforce of about 15,000. Operating
in rural India, the company has been responsible for bringing economic activity
to remote parts of this region and providing basic amenities including
healthcare to a population otherwise deprived of such support.
Over half of the workforce comprises of women. Equal status is accorded to them
and they earn the same salaries/wages as their male counterparts.
With a strong in-house back up of relevant services, which include shipping,
clearing and forwarding and engineering he company is well placed to understand
and fulfill the needs of the demanding world market and is well positioned to
cater to it.
Over its history, the company has built many of the tea factories and
commercial premises and bridges in the region. The activity is continued today
- the company's Engineering Division takes up independent civil and electrical
projects.
The company is part of RPG Enterprises one of the largest and well-respected
industrial groups in India. The Group has a turnover of around Rs.73 Billion
and interests in tyres, cables, power transmission, telecommunications,
pharmaceuticals, specialty chemicals, retail and consumer marketing, hotel and
tourism, entertainment and agri-business.
Listed
on the National, Bombay and Cochin stock exchanges, HML has a paid up capital
of Rs.184.50 million and a shareholder base of around 33,000.
Products
and Services
Harrisons
Malayalam Limited operates its various businesses through independent
divisions. The company has leveraged skills developed in one sphere of activity
to complement the requirements of another. Over a period of time they have
developed competence in all these areas. The various divisions are
v
Tea
v
Rubber
v
Spices
and Horticulture Crops
v
Tissue
Culture
v
Engineering
and Services
v
Marketing
of Branded consumer products
v
Trading
and Exports
v
Clearing
and Shipping
Engineering Consultancy & Contractors
Quality is never an accident; it is always the result of high intention,
sincere effort, intelligent direction and skillful execution; it represents the
wise choice of many alternatives
Harrisons
Malayalam's history in this field dates back to 1912 making it the oldest
engineering company in Kerala and one of the oldest in South India. Many of the
tea factories in South India have been built by this department, which even
today retains its identity as leading Engineers in Kerala.
Equipped with the expertise to handle any kind of engineering contract
work, both through competitive bidding or turnkey basis, many major projects in
South India have been undertaken and successfully completed by this division.
Fully computerized, the division has a team of highly experienced and committed
engineers and support staff. It enjoys the infrastructure and financial
strength of the company and the RPG Group.
Turnkey Projects
Design, supply, erection and commissioning on turnkey basis:
v
Factory Complex for Tea Processing
v
Factory Complex for Rubber Processing
v
Industrial Buildings including structural steelwork
v
Multi-storied Buildings
v
RCC Machinery foundations
v
Pipelines
v
Floating pontoons
v
Lighting towers
v
Hospitals
v
Factory Complex for Fruit Processing, oil palm processing
v
Cement grinding and clay refining etc.
v
Storage Tanks
v
Effluent treatment plants
v
Waste heat recovery systems
Electrical Engineering
'A' Class Electrical contractor in Kerala, Karnataka and Tamil Nadu and
undertakes
Design, Supply, Installation, Testing and Commissioning of:
Electrical installations including (LT/HT/EHT) works in:
v
Industrial Electrification
v
Building Electrification
v
Substations up to 110 KV
v
Transmission lines and distribution lines
Civil & Structural Engineering
Design, Fabrication and Erection of :
v
Factory Building
v
Steel Structures
v
RCC Framed Structures
v
Floating pontoons
v
Effluent treatment plants
v
Storage tanks
v
Silos
v
Bunkers
v
Lighting towers
v
Transmission towers
Mechanical
Design, Supply, Installation, Testing and Commissioning of:
v
Tea Factories
v
Rubber Factories
v
Effluent treatment plants
v
Waste heat recovery systems
v
Stainless and Carbon Steel pipelines
v
Custom built dryers
v
Air conditioning
v
Industrial water supply
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.44.87 |
|
UK
Pound |
1 |
Rs.85.99 |
|
Euro |
1 |
Rs.58.15 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|