MIRA
INFORM REPORT
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Report Date : |
15.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHALIMAR PAINTS LIMITED |
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Registered Office : |
13, Camac Street, Kolkata –
700 017, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.12.1902 |
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Com. Reg. No.: |
21-1540 |
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CIN No.: [Company
Identification No.] |
L24222WB1902PLC001540 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALS12945C |
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PAN No.: [Permanent
Account No.] |
AAECS0547D |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturing of Paint, Enamels and Varnishes. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1000000 |
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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 and reputed company having satisfactory track. Directors are
reported as experienced and respectable businessmen. Trade relations are reported
as fair. Business is active. 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 : |
13, Camac Street, Kolkata –
700 017, West Bengal, India |
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Tel. No.: |
91-33-2472341/42/2471141/42/1665/8679/22832878 |
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Fax No.: |
91-33-2404191/22832859 |
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E-Mail : |
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Website : |
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Factory 1 : |
P.O. Danesh Shaikh Lane, Goaberia, Howrah - 711 109, West Bengal,
India |
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Tel. No.: |
91-33-2644 3201 |
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Factory 2 : |
Nashik Bombay Road, Village Gonde (Ghoti), Nashik - 422 402,
Maharashtra |
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Tel. No.: |
91-2553-225002 |
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Factory 3 : |
Al & A2, UPSIDC Industrial Area, Dist: Bulandsahar, Uttar Pradesh,
India |
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Tel. No.: |
91-5735-221793 |
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Branches : |
Located
at: Ø
Ahmedabad,
Gujarat Ø
Bangalore,
Karnataka Ø
Baroda,
Gujarat Ø
Kolkata,
West Bengal Ø
Cannanore Ø
Calicut,
Kerala Ø
Kochi,
Kerala Ø
Coimbatore Ø
Chandigarh Ø
Chennai,
Tamilnadu Ø
Cuttack,
Orissa Ø
Ghaziabad,
Uttar Pradesh Ø
Goa Ø
Guwahati,
Assam Ø
Gurgaon,
Haryana Ø
Hubli,
Karnataka Ø
Hyderabad,
Andhra Pradesh Ø
Indore,
Madhya Pradesh Ø
Jaipur,
Rajasthan Ø
Jammu
Tawai Ø
Kanpur,
Uttar Pradesh Ø
Ludhiana,
Punjab Ø
Lucknow,
Uttar Pradesh Ø
Madurai,
Tamilnadu Ø
Mangalore,
Kerala Ø
Mumbai,
Maharashtra Ø
Nagpur,
Maharashtra Ø
New
Delhi Ø
Patna,
Bihar Ø
Pune,
Maharashtra Ø
Rajkot,
Gujarat Ø
Siliguri Ø
Trichur,
Kerala Ø
Varanasi,
Uttar Pradesh Ø
Vijaywada,
Andhra Pradesh Ø
Vishakapatnam,
Andhra Pradesh |
DIRECTORS
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Name : |
Mr. A. Gooptu |
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Designation : |
Director (upto 18th January,
2006) |
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Name : |
Mr. R. Jindal |
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Designation : |
Director |
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Name : |
Mr. G. Jhunjhnuwala |
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Designation : |
Director |
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Name : |
Mr. S. L. Agarwal |
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Designation : |
Managing Director |
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Name : |
Mr. A. V. Lodha |
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Designation : |
Director |
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Name : |
Mr. R. Garg |
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Designation : |
Director |
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Name : |
Mr. Dr. R. Srinivasan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. S. Sarda |
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Designation : |
Chief Operating Officer & Company
Secretary |
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Name : |
Mr. M. M. Ghosh |
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Designation : |
Vice President (Technical) |
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Name : |
Dr. S. K. Pal |
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Designation : |
Vice President (R&D) |
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Name : |
Mr. T. R. Sharma |
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Designation : |
Vice President (Operations - Nashik) |
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Name : |
Mr. Sujit Sinha |
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Designation : |
Head (Industrial Sales) |
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Name : |
Mr. M. Agarwal |
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Designation : |
General Manager (Commercial) |
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Name : |
Mr. S. K. Chattopadhyay |
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Designation : |
Head of Personnel |
SHAREHOLDING
PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
2379456 |
62.86 % |
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Financial
Institutions |
250420 |
6.61 % |
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NRI/NRC |
9693 |
0.26 % |
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General |
1146051 |
30.27 % |
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Total |
3785620 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Paint, Enamels and Varnishes. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Paint, Enamels & Varnishes N.C. Lacquers &
Ancillaries |
Tonnes |
43,000 |
36187 |
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Synthetic Resin (Varnish) |
Tonnes |
7,672 |
2,612 |
GENERAL
INFORMATION
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Customers : |
Ø Hindustan
Aeronautics Limited Ø Indian
Navy |
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No. of Employees : |
700 |
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Bankers : |
Ø State
Bank of India Ø Bank
of Baroda Ø State
Bank of Patiala Ø Punjab
National Bank 1st Floor, P &
B House, 18/A, Brabourne Road, Kolkata – 700 001,West Bengal Ø
State Bank of Bikaner and Jaipur Ø Corporation Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chaturvedi
& Partners Chartered
Accountants COST
aUDITORS
Virendra
Kumar Jain Cost
Accountant |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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80,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 80.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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37,85,620 |
Equity Shares |
Rs. 10/- each |
Rs. 37.856
Millions |
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Share Forfeiture Account |
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Rs. 0.001
Millions |
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Total |
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Rs. 37.857 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
37.857 |
37.857 |
37.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
245.512 |
228.431 |
221.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
283.369 |
266.288 |
259.200 |
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LOAN FUNDS |
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1] Secured Loans |
422.210 |
339.735 |
247.700 |
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2] Unsecured Loans |
82.642 |
86.390 |
86.800 |
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TOTAL BORROWING |
504.852 |
426.125 |
334.500 |
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DEFERRED TAX LIABILITIES |
16.400 |
17.764 |
0.000 |
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TOTAL |
804.621 |
710.177 |
593.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
212.897 |
209.046 |
192.300 |
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Capital work-in-progress |
0.000 |
0.155 |
0.200 |
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INVESTMENT |
0.024 |
0.024 |
0.000 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
497.190
|
514.602 |
390.300 |
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Sundry Debtors |
504.352
|
412.505 |
338.000 |
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Cash & Bank Balances |
89.570
|
82.358 |
71.500 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
102.563
|
55.676 |
58.300 |
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Total
Current Assets |
1193.675
|
1065.141 |
858.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
584.991
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556.506 |
457.700 |
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Provisions |
17.735
|
10.701 |
8.600 |
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Total
Current Liabilities |
602.726
|
567.207 |
466.300 |
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Net Current Assets |
590.949
|
497.934 |
391.800 |
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MISCELLANEOUS EXPENSES |
0.751 |
3.018 |
9.400 |
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TOTAL |
804.621 |
710.177 |
593.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales
Turnover |
2483.000 |
2179.200
|
1323.000 |
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Other
Income |
17.000
|
11.800
|
06.000
|
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Stock
Adjustments |
02.000
|
79.000
|
52.700
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Total |
2502.000 |
2270.000 |
1381.700 |
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Profit/(Loss) Before Tax |
50.000
|
30.600
|
22.500
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Provision for Taxation |
15.900
|
10.800
|
07.600
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Profit/(Loss) After Tax |
34.100
|
19.800
|
14.900
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Expenditures : |
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Raw
Materials |
1379.400
|
1254.600
|
737.600
|
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Excise
Duty |
312.600
|
279.400
|
166.200
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Power
& Fuel Cost |
19.700
|
22.400
|
18.700
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Other
Manufacturing Expenses |
12.300
|
12.300
|
08.200
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Employee
Cost |
116.000
|
115.600
|
79.900
|
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Selling
and Administration Expenses |
502.600
|
469.500
|
285.000
|
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Miscellaneous
Expenses |
52.700
|
42.500
|
36.900
|
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Interest
& Financial Charges |
29.200
|
17.800
|
11.200
|
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Depreciation
|
27.500
|
25.300
|
15.500
|
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Total Expenditure |
2452.000 |
2239.400 |
1359.200 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales
Turnover |
534.500 |
585.800 |
641.600 |
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Other
Income |
4.300 |
5.600 |
5.200 |
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Total
Income |
538.800 |
591.400 |
646.800 |
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Total
Expenditure |
516.500 |
563.200 |
605.000 |
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Operating
Profit |
22.300 |
28.200 |
41.800 |
|
Interest |
7.500 |
10.300 |
18.700 |
|
Gross
Profit |
14.800 |
17.900 |
23.100 |
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Depreciation |
7.300 |
7.700 |
8.100 |
|
Tax |
2.800 |
3.200 |
6.000 |
|
Reported
PAT |
4.700 |
7.000 |
9.000 |
Notes
200606
Quarter 1 –
EPS is Basic & Diluted Status of Investor Complaints for
the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter
02 Complaints Received during the quarter 02 Complaints disposed off during the
quarter 04 Complaints unresolved at the end of the quarter Nil 1. The above
results were taken on record by the Board of Directors at their meeting held on
July 30, 2006. 2. The Company has only one business segments i.e; Paints. 3.
The limited review of above unaudited results as required under clause 41 of
the listing agreement has been carried out by statutory auditors. 4. Previous
years figures have been rearranged / regrouped wherever necessary.
200609
Quarter 2 –
Expenditure Includes (Increase) / Decrease in Stock Rs
(47.50)million Consumption of Raw Materials Rs 405.50 million Staff Cost Rs
32.50 million Discount & Rebates Rs 73.90 million Other Expenditure Rs 98.80
million Tax Indicates Provision for Taxation (Including Deferred Tax) 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 03 Complaints disposed off during the
quarter 03 Complaints unresolved at the end of the quarter Nil 1. The above
results were reviewed by Audit Committee on October 28, 2006 and taken on
record by the Board of Directors at their meeting held on October 31, 2006. 2.
The Company has only one business segment i.e. 'Paints'. 3. The limited review
of above unaudited results as required under Clause 41 of the listing agreement
has been carried but by the statutory auditors. 4. Previous year's figures have
been rearranged / regrouped wherever necessary.
200612
Quarter 3 –
Expenditure Includes (Increase) / Decrease in Stock Rs
(26.20)million Consumption of Raw Materials Rs 427.00 million Staff Cost Rs
30.90 million Discount & Rebates Rs 92.80 million Other Expenditure Rs
80.50 million Tax Indicates Provision for Taxation (including deferred Tax and
fringe benefit tax) EPS is Basic & Diluted Status of Investor Complaints
for the quarter ended December 31, 2006 Complaints Pending at the beginning of
the quarter Nil Complaints Received during the quarter 05 Complaints disposed
off during the quarter 05 Complaints unresolved at the end of the quarter Nil
1. The above results were taken on record by the Board of Directors at their
meeting held on January 23, 2007. 2. The Company has only one business segment
i.e. Paints. 3. The limited review of above unaudited results as required under
Clause 41 of the listing agreement has been carried but by the statutory
auditors. 4. Previous year's figures have been rearranged / regrouped wherever
necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
1.96 |
1.70 |
1.58 |
|
Long
Term Debt-Equity Ratio |
0.45 |
0.39 |
0.40 |
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Current
Ratio |
1.18 |
1.17 |
1.23 |
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TURNOVER
RATIOS |
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Fixed
Assets |
5.83 |
5.66 |
5.21 |
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Inventory |
4.91 |
4.82 |
4.95 |
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Debtors |
5.42 |
5.81 |
5.34 |
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Interest
Cover Ratio |
2.71 |
2.72 |
3.01 |
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Operating
Profit Margin(%) |
4.30 |
3.38 |
3.72 |
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Profit
Before Interest And Tax Margin(%) |
3.19 |
2.22 |
2.55 |
|
Cash
Profit Margin(%) |
2.48 |
2.07 |
2.30 |
|
Adjusted
Net Profit Margin(%) |
1.37 |
0.91 |
1.13 |
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Return
On Capital Employed(%) |
11.29 |
8.10 |
8.24 |
|
Return
On Net Worth(%) |
14.35 |
8.85 |
9.20 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.164.00/- |
|
Low |
Rs.158.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Shalimar Paints Limited, a company primarily incorporated by
British entrepreneurs under the name Shalimar Paint Colour & Varnish
Company in 1902 to takeover the business of 'The Shalimar Works', a company
which manufactures paints, colour and varnish from its factory at Shalimar and
Goabaria in Bengal. It is having plants in Howrah (West Bengal), Nasik
(Maharashtra) and Sikandrabad, Dist. Bulandsahar (Uttar Pradesh).
Courtalds Coatings, UK was the holding company and it holds majority
shareholding through it's subsidiary International Paint Company, UK. It became
a private limited company in 1956 and later on in 1961, it was converted into a
public limited company. The company acquired its present name in 1963.
Courtalds slowly started disinvesting since 1978 and finally in 1989, it fully
disinvested its stake and maintained only its technical and marketing
collaboration with the Indian company till 1994. The Courtald's stake was
acquired by G Jhunjhunwala, a HongKong based NRI (20%) and the Delhi-based O P
Jindal group (42%).
The company has three product segments - industrial, marine and architectural
paint segments. It also manufactures varnishes, resins, etc. The company has
two manufacturing units one at Howrah, West Bengal and the other at Nashik,
Maharashtra. 90% of its raw materials are obtained from Kerala Mining and
Materials (KMML).
The company diversified in 1993 into aviation coatings. It also launched a
premium range of wall finisher - Hussain Collections - in the decorative
sector. It also entered into a technical collaboration with Salchi, Italy to
manufacture solvent borne industrial paints. A joint venture company, Grace
Shalimar (P) Limited, has been formed with W R Grace & Co, to produce 2000
tpa of packaging coatings for which a new plant will be set up at Nashik.
In 1999-2000, the company introduced two new products, MELA, an acrylic
distemper and XTRA, a premium 100% acrylic exterior finish paint. In 2000-01,
the company has entered into a tie-up with Creanova, a world leader in
colorants and in 2001-02 the company launched colour tinting system business
under the brand name of Color Space. Several new products including Roadcoat,
Shaktiman were introduced during 2001-02.
Fixed Assets
Ø Land
Ø Building
Ø Plant
and Machinery
Ø Furniture
& Fittings
Ø Lease
Equipment
Ø Office
Equipments
Ø Motor
Car
Ø
Other Vehicles
Review
of operations
The Company's performance in the year under review has been quite satisfactory.
Sales have increased from Rs. 2180 Millions in 2004-05 to Rs. 2480 Millions, an
increase of about 14%. The growth in sales has come from both the decorative
and industrial segments with the industrial segment performing particularly
well. However there has been severe volatility in raw material prices.
The Company has laid special emphasis on sale of high value products and on
improving operational efficiencies. In view of the steps taken by the Company,
in spite of increase in raw material prices, the PBIDT has increased by 36%
from Rs. 79.200 Millions to Rs. 108.100 Millions.
The Company's borrowing costs have gone up due to hardening of interest rates,
particularly on foreign currency loans and also higher utilization of working
capital funds for financing increased volume of sales. The overall finance
costs have increased from Rs. 17.800 Millions to Rs. 29.200 Millions.
With the improvement in the operating margins the profit before tax has
increased by 63% from Rs. 30.700 Millions to Rs. 50.000 Millions In view of
increased demand from both the housing as well as the industrial sectors, the
Company is poised for significant growth in the coming years.
Technical collaboration with KCI
The Company has signed a technical collaboration agreement for coil coatings
with Kunsul Chemical Ind. Co. Limited, Korea. KCI is one of the largest paint
manufacturing companies of Korea and is a leader in PCM coatings.
With the signing of this agreement Shalimar is making an entry into the fast
growing coil coating market.
Sadolin marketing arrangement
The Company has entered into a marketing agreement with Akzo Noble, the largest
paint company of the world, for introducing in India the Sadolin range of wood
coatings.
Tinting Systems
The Company has increased the spread of Color Space, its color tinting systems.
A large number of Colorspace systems have been installed at dealer outlets in
various locations all across the country. The Company has also added new shades
and the customers now have a wide spectrum of shades to choose from.
ISO Certifications
The Company's Howrah unit is accredited with ISO 9001:2000 certification while
its Nasik unit continues to enjoy ISO 9002 accreditation.
Its’ products range includes :-
Ø Marine
Coatings
Ø Architectural
Coatings
Ø High
Performance Coatings
Ø Can
Coatings
Ø Superlac
Acrylic Emulsion
Ø Synthetic
Enamel
Ø Superlac
Hi-Gloss Enamel
Ø Xtra Premium
100% Acrylic Exterior Finish
Ø Husain
Collection Premium Acrylic Emulsion
Ø Mela
Acrylic Distemper
Ø No. 1
Premium Acrylic Distemper
Ø Pink
Primer For Wood
Ø Red
Oxide Metal Primer
Ø Shalimar
Universal White Primer
Ø Wall
Neutralising Cement Primer
Ø Shaktiman
Exterior Acrylic Emulsion
Ø Water
4 Thinnable Cement Primer
It is in trade terms with :-
Ø Durga
Oil Industries
Ø Indian
Tin Box Manufacturing Company
Ø Sunrise
Chemicals
Ø Kali
Pigments Private Limited
Ø V. K.
Oils Limited
Ø Cross
Point Chemicals Industries
Ø J. G.
Chemicals
Ø Ganga
Rasayanie Private Limited
Ø Satimata
Tin Containers Private Limited
Ø Mascot
Industries
Ø Calcutta
Containers Company
Ø Pearson
Containers Company
Ø Bijaya
Drums Private Limited
Ø United
Packers
Ø Atlas
Tin Box Company
Ø Damani
Packaging Private Limited
Ø Techon
India Private Limited
Ø Piyanshu
Chemicals
Ø Bharat
General Textile Industries
Ø Packaging
Corporation of India
Ø Somani
Oil Industries
As Per Website
Shalimar Paints is one of the leading
paints manufacturing companies of India. It has
three manufacturing units and more than 45 branches and depots all across the
country.
The Company has a wide product range in both Architectural
and Industrial sectors. The Architectural Coatings cover both Interior and
Exterior sectors.
The Husain Collection based on the best quality acrylic
copolymer based emulsion is the Company's premium acrylic emulsion.
The Company also has tinting systems under the brand name
"Color Space" where the Company offers more than
9000 shades across all product lines to its customers.
The Jindal Group
The Jindal group is a US$2 billion conglomerate and in terms
of assets it is ranked as the sixth largest Indian Business House.
Mr. Ratan Jindal is
the promoter director on the Board representing the Jindal Group. His flagship
company is Jindal Stainless Limited which is India's largest integrated
manufacturer of quality stainless steel and caters to more than 40% of the
total demand for stainless steel in the country.
The Jhunjhnuwala Group
"Mr. Girish Jhunjhnuwala is the promoter director on
the Board representing the Jhunjhnuwala Group."
The Jhunjhnuwala group is an NRI group based in Hong Kong.
It is mainly engaged in the hospitality industry, real estate development,
watches manufacturing and entertainment industry.
Shalimar Paints Sales Depot at Trivandrum inaugurated by
Kerala Minister
June 25, 2006 Shalimar Paints
inaugurated its Sales Depot at Trivandrum at the hands of Kerala State
Transport Minister Shri. Mathew T. Thomas in the presence of Shri S. L. Agarwal
- Managing Director, Titus Verghese - Zonal Sales Manager and Shri D.
Harihariputhran - Sales Consultant.
Heritage
|
1902 |
Shalimar
Paint Colour & Varnish Co. Limited was incorporated in India |
|
1928 |
Pinchin
Johnson & Associates bought control of SPCV Limited &
made it part of Red Hand |
|
1961 |
The Company became a Public Limited Company on 27th May. |
|
1963 |
Its name was changed to Shalimar Paints Limited on 1st September. |
|
1964 |
Red
Hand Composition was acquired by International
Paints which became a part of |
|
1989 |
Sold
to Jhunjhunwalas, & to the O. P. Jindal
Group. They jointly managing the business. |
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.42.90 |
|
UK Pound |
1 |
Rs.84.96 |
|
Euro |
1 |
Rs.57.21 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
66 |
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 |
|