MIRA
INFORM REPORT
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Report Date : |
14.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
RAJA PALAYAM MILLS LIMITED |
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Registered Office : |
Raja Palayam Mills Premises,
post Box no:1,P.A. C. Ramaswamy Road, Rajapaliyam:626117, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.02.1936 |
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Com. Reg. No.: |
002298 |
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CIN No.: [Company
Identification No.] |
L17111TN1936PLC002298 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRIR00352C |
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PAN No.: [Permanent
Account No.] |
AAAACR8897F |
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Legal Form : |
Public limited liability company. Company’s shares are listed on the
stock exchange. |
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Line of Business : |
Manufacturer of yarn of different counts |
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 3800000 |
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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 : |
Raja Palayam Mills Premises,
post Box no:1,P.A. C. Ramaswamy Raja Salai, Rajapaliyam:626117, Tamilnadu |
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Tel. No.: |
91-4563-23566 (5 Limes) |
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Fax No.: |
91-4563-236520 |
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E-Mail : |
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Factory : |
Rajapalaiyam Textiles, Perumalpatti Village - 627 753,Tirunelveil
District, Tamilnadu. |
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Factory : |
Ramco Fashions, SF 96B-97, Reddy Valasu, Valliarsal Road, Vellakoil -
638 111, Tamilnadu. |
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Factory : |
Tissue Culture Division, Shri Ramco
Bio-Tech, Mailanahalli Village, Nelamangala - 526 123, Bangalore Rural District, Karnataka. |
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Factory : |
2, Perumalpatti Village, Tirunelveli District, Tamilnadu - 627 753, India |
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Factory : |
Rajapal Mill Premise, Samusigapuram Road, Rajapalayam – 626 117, Tamilnadu, India |
DIRECTORS
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Name : |
Shri P.R. RAMASUBRAHMANEYA RAJHA |
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Designation : |
Chairman |
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Qualification : |
B.Sc. |
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Name : |
Smt R. SUDARSANAM |
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Designation : |
Managing Director |
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Name : |
Shri P.R. VENKETRAMA RAJA |
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Designation : |
Director |
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Qualification : |
B.Tech., M.B.A. |
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Name : |
Shri S.S. RAMACHANDRA RAJA |
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Designation : |
Director |
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Qualification : |
B.Sc. |
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Name : |
Shri N.K. RAMASUWAMI RAJA |
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Designation : |
Director |
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Qualification : |
B.Sc. |
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Name : |
Dr. K.T. KRISHNAN |
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Designation : |
Managing Director., |
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Qualification : |
F.C.C.P |
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Name : |
Shri P. GURUSAMY CHETTIAR |
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Designation : |
Director |
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Name : |
Shri P.S. JAGANATHA RAJA |
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Designation : |
Director |
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Name : |
Shri N.R.K. VENKATESH RAJA |
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Designation : |
Director |
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Qualification : |
B.E. |
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Name : |
Shri V.S. VEMBAN '' |
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Designation : |
Director |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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A. PROMOTERS HOLDING 1 . Promoters |
17,54,660 |
0.77 |
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2. Persons acting in concert |
1 ,25,450 |
1.08 |
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Sub-total |
18,80,110 |
1.85 |
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B. NON PROMOTERS HOLDING 1. Banks, Fl's Ins. Cos, Govt. Institutions |
1,030 |
0.10 |
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2. NRIs/OCBs & Non-domestic Companies |
33,727 |
0.77 |
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3. Private Corporate Bodies |
97,299 |
3.70 |
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4. Public |
15,00,414 |
93.58 |
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Sub-total |
16,32,470 |
98.15 |
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Grand Total |
35,12,580 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of yarn of different counts |
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Products : |
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Exports : |
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Products : |
Cotton Yarn |
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Countries : |
Japan, Korea, Thailand, Honduras, Malaysia, Dominican Republic, China and Indonesia. |
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GENERAL
INFORMATION
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No. of Employees : |
Total: 3000 |
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Bankers : |
Citi Bank HDFC Bank Ltd HSBC Ltd Indian Bank Karur Vysya Bank Standard Chartered Bank State Bank of India UTI Bank State Bank of India ICICI Bank Limited IDBI Bank Limited |
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Facilities : |
Notes : (i) Secured by specific charges on the assets acquired under the respective schemes and / or by pari-passu charge on all the fixed assets of the company other than those covered by a specific charge. (ii) Secured by charge on stock-in-trade, stores and book debts of the company and a second charge on the fixed assets of the company.
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s. M.s. Jagannathan and N. Krishnaswami Chartered Accountant |
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Address : |
31, Premier Flats, Karur Byepass Road, Tiruchirappalli-620 002,
Tamilnadu. |
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Name : |
M/s. Ramakrishana Raja and compny Chartered Accountants |
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Address : |
5, N.C.C. office Road, Visalakshipuram, Madurai-625 014, Tamilnadu. |
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Associates/Subsidiaries : |
Sandhya Spinning Mill Ltd Thanjavur Spinning Mill Ltd Ramco Management P. Ltd Sri Vishnu Shankar Mill Ltd The Ramaraju Surgical Cotton Mills Ltd Sri Vishnu Shankar Mill Ltd Thanjavur Spinning Mill Ltd Ramco Industries Ltd The Ramaraju Surgical Cotton Mills Ltd Sri Vishnu Shankar Mill Ltd Sandhya Spinning Mill Ltd Thanjavur Spinning Mill Ltd Madras Cements Ltd Ramco Industries Ltd Ramco Systems Ltd The Ramaraju Surgical Cotton Mills Ltd Sri Vishnu Shankar Mill Ltd Sandhya Spinning Mill Ltd Thanjavur Spinning Mill Ltd |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50,00,000 |
Equity Sahres |
Rs.10/- each |
Rs.50.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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35,12,580 |
Equity Sahres |
Rs.10/- each |
Rs.35.125 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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35.125 |
35.125 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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920.506 |
851.312 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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955.631 |
886.437 |
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LOAN FUNDS |
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1] Secured Loans |
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1971.661 |
1141.071 |
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2] Unsecured Loans |
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18.056 |
42.607 |
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TOTAL BORROWING |
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1989.717 |
1183.678 |
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DEFERRED TAX LIABILITIES |
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177.940 |
141.940 |
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TOTAL |
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3123.288 |
2212.055 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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2095.316 |
1329.870 |
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Capital work-in-progress |
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6.879 |
5.820 |
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INVESTMENT |
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460.749 |
434.623 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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525.444 |
308.327 |
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Sundry Debtors |
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79.098 |
64.315 |
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Cash & Bank Balances |
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49.976 |
23.354 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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372.570 |
344.139 |
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Total
Current Assets |
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1027.088 |
740.135 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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433.601 |
304.361 |
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Provisions |
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57.670 |
33.324 |
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Total
Current Liabilities |
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491.271 |
337.685 |
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Net Current Assets |
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535.817 |
402.450 |
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MISCELLANEOUS EXPENSES |
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24.527 |
39.292 |
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TOTAL |
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3123.288 |
2212.055 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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1470.388 |
1409.899 |
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Other Income |
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205.630 |
105.578 |
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Total Income |
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1676.018 |
1515.477 |
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Profit/(Loss) Before Tax |
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158.145 |
91.948 |
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Provision for Taxation |
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48.900 |
9.400 |
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Profit/(Loss) After Tax |
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109.245 |
82.548 |
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Earnings in Foreign Currency : |
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Export on Yarn |
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0.006 |
0.007 |
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Export on Cement Product |
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0.000 |
0.000 |
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Other Earnings |
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0.000 |
0.000 |
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Total Earnings |
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Imports : |
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Raw Materials |
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110.490 |
69.434 |
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Stores & Spares |
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16.062 |
10.308 |
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Capital Goods |
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343.290 |
87.170 |
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Total Imports |
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469.842 |
166.912 |
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Expenditures : |
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Trade Purchase |
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52.400 |
0.000 |
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Raw Material Consumed |
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607.531 |
668.051 |
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Salaries, Wages, Bonus, etc. |
|
121.116 |
99.867 |
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Interest |
|
69.453 |
53.483 |
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Managing Director Remuneration |
|
7.817 |
2.850 |
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Licence and Taxes |
|
8.748 |
3.041 |
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Deferred remuneration Expenses |
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18.663 |
23.976 |
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Administration Expenses |
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65.810 |
66.146 |
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Donations |
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4.163 |
4.365 |
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Power & Fuel |
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230.046 |
195.379 |
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Stores Consumed |
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24.601 |
25.266 |
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Job Work Charges |
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35.448 |
23.146 |
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Repairs |
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75.653 |
67.644 |
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Depreciation & Amortization |
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196.414 |
190.308 |
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Total Expenditure |
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1517.863 |
1423.522 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Type |
1st Qtr |
2nd Qtr |
3rd Qtr |
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Sales Turnover |
426.100 |
454.700 |
435.700 |
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Other Income |
47.500 |
71.000 |
93.600 |
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Total Income |
473.600 |
525.700 |
529.300 |
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Total Expenditure |
347.200 |
376.900 |
373.300 |
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Operating Profit |
12.640 |
148.800 |
156.000 |
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Interest |
35.500 |
34.200 |
28.100 |
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Depreciation |
61.200 |
65.100 |
65.900 |
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Tax |
03.500 |
05.100 |
07.300 |
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Reported PAT |
19.500 |
34.900 |
40.700 |
Notes:
200606 EPS is Basic and diluted. 1.The above unaudited results were taken on record at the Meeting of the Board of Directors held on 27.07.2006. 2.No Investor complaint received during the quarter and no Complaint pending at the end of the quarter. 3.The Statutory Auditors have carried out a Limited Review of the financial results for the three months ended 30th June,2006 as per clause 41 of the Listing Agreement. 4. Previous Period figures have been regrouped / restated wherever necessary.
200609 Expenditure Includes (Increase) / Decrease in Stock
Rs 1.40 million Raw Material Consumption Rs 194.10 million Staff Cost Rs 39.80
million Power & Fuel Rs 77.80 million Other Expenditure Rs 63.80 million
Tax Includes Provision for Current Tax Rs 4.80 million Deferred Tax Rs 9.50
million Fringe Benefit Tax Rs 0.30 million EPS is Basic and 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 Nil
Complaints disposed off during the quarter Nil Complaints unresolved at the end
of the quarter Nil 1. The above unaudited results were taken on record at the
Meeting of the Board or Directors held on October 23, 2006. 2. Statutory
Auditors have carried out a Limited Review of the Financial Results for the
quarter and half year ended September 30, 2006. 3. Previous period figures have
been regrouped / restated wherever necessary. 4. Prior period item represents
Wind Mill Income related to earlier year. 5. The Board has approved payment of
Interim Dividend @ 30% on the Equity Shares of the Company for the year
2006-07.
200612 EPS is Basic & Diluted. 1) The above unaudited
results were taken on record at the Meeting of the Board of Directors held on
25-01-2007 2) No Investor Complaints received during the quarter and no
complaint pending at the end of the quarter. 3) Statutory Auditors have carried
out a Limited Review of the Financial Results for the 9 months ended 31st
December,2006 as per clause 41 of the Listing Agreement. 4) Previous period
figures have been regrouped / restated wherever necessary. 5) Prior period item
represents Wind Mill Income related to earlier year. 6) The Board has approved
payment of 2nd Interim Dividend @ 30% on the Equity Shares of the Company for
the year 2006-07. The record date for the payment is 31-01-2007.
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
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1.72 |
1.47 |
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Long Term Debt-Equity Ratio |
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1.33 |
0.92 |
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Current Ratio |
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0.95 |
1.02 |
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Fixed Assets |
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0.54 |
0.67 |
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Inventory |
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3.77 |
3.61 |
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Debtors |
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21.95 |
29.00 |
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Interest Cover Ratio |
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3.13 |
2.54 |
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Operating Profit Margin(%) |
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27.25 |
23.03 |
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Profit Before Interest And Tax Margin(%) |
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14.77 |
10.21 |
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Cash Profit Margin(%) |
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19.42 |
18.38 |
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Adjusted Net Profit Margin(%) |
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6.94 |
5.56 |
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Return On Capital Employed(%) |
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9.39 |
7.21 |
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Return On Net Worth(%) |
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11.86 |
9.48 |
STOCK PRICES
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Face Value |
Rs.10 |
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High |
Rs.475.00 |
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Low |
Rs.435.65 |
LOCAL AGENCY FURTHER
INFORMATION
DIRECTORS' REPORT
FINANCIAL RESULTS
The financial results for the year ended 31st March, 2006 after charging all expenses and contribution to P.A.C.Ramasamy Raja Memorial Fund of Rs. 3.000 Millions which is within the limits laid in the Articles of Association, but before deducting interest and providing depreciation has resulted in operating profit of Rs. 424.013 Millions.
After deducting Rs. 69.453 Millions towards Interest cost and providing Rs.196.4143 Millions- towards Depreciation, the Net Profit for the year is Rs. 158.145 Millions. Adding the surplus of Rs. 12.027 Millions- brought forward from the previous year, your Directors propose to appropriate the total sum of Rs. 170.172 Millions
TAXATION
An amount of Rs.48.900 Millions has been provided for Income-Tax. However, the cash outflow for Income-Tax is only Rs.12.900 Millions under the provisions of MAT and FBT. The balance of Rs.36.000 Millions has been provided towards Deferred Tax Liability for the current year. The tax paid under MAT will be available for set off in the year of regular income tax liability.
TRADE CONDITIONS
The raw material cost prevailed at reasonable level during the first three quarters of the year. However the cotton price increased during the last quarter of the year. Your Directors were able to achieve increased profitability due to better product mix and other cost reduction measures. Also, the modernization of units with the latest state-of-the-art technology machines has improved the productivity resulting in improved working results.
SHRI RAMCO BIOTECH (RESEARCH & DEVELOPMENT)
The working of the unit after charging all the expenses but before providing interest and depreciation has resulted operating profit of Rs.4.000 Millions. The high quality plants developed through Research & Development of this unit were well received in Domestic Market as well as Export Market.
GARMENT UNIT
During the year, a stitching unit was set up at Vellakoil to produce Garments at a cost of Rs. 5.000 Millions. The unit has produced 14,361 PCS. during the year, accounting a revenue of Rs.6.4 Millions. The order position both for export as well as domestic market is showing increasing trend.
EXPORTS
On the export front during the year, we have made direct export of Cotton Yarn for a value of Rs. 156.6 Millions, Cement Products to the extent of Rs.37.900 Millions and merchant export of yarn Rs.67.900 Millions from ajapalayam Mills and Rs. 493.500 Millions from our Divisions Rajapalaiyam Spintext and Rajapalaiyam Textiles. The total export during the year was Rs. 755.900 Millions. Shri Ramco Bio-Tech, our Tissue Culture Unit, has exported live plantlets for a value of Rs. 20.800 Millions to U.K., Netherlands, France and U.S.A. Your Directors are thankful to M/s. Mitsubishi Corporation, M/s. Doko Spinning Co. Ltd., and M/s. Unitika Ltd., Japan for their continued support and efforts for promotion of exports to Japanand other countries.
DEBONDING OF EOUs
Rajapalaiyam Spintext and Rajapalaiyam Textiles, our Textile Divisions were setup as 100% EOUs in 1990-91 and 1994-95 respectively. Both Units have been exited from EOU Scheme with effect - from 16-01-2006 after paying necessary duties under EPCG Scheme. More benefits will now be available under various Incentive Schemes for Export for these units which are not applicable for EOUs.
MODERNISATION &
EXPANSION
As a part of continuous intensive modernization programme, the company has invested about Rs. 207.0 Millions by availing term loan under Technology Upgradation Fund (TUF) scheme for investment in state-of-the-art textile machinery & equipments.
As reported in the Directors' Report in the Previous Year, the Company has implemented the expansion of spindles capacity by 25000 spindles under project cost of about Rs. 640.00 Millions including the cost of 3 Nos of 1.25 MW wind mills to take care of the power requirement of the enhanced capacity. The project has been commissioned and commercial production has started during last quarter of the Financial Year. The full benefits of this project will accrue from the Financial Year 2006-07.
WIND MILL
The captive generation of power through Gensets has become unviable as there is huge increase in international crude price. The cost of production will go up if we depend on HFO gensets as a major sources of power and it will in turn affect the competitive edge of our product. Hence keeping in mind the above, your Directors have installed 3 Nos of 1.25 MW and 2 Nos of 1.65 MW Wind turbine generators during the year at project cost of about Rs. 376.6 Millions. With this, the total windmill capacity is 21.55 MW and wind power has become a major source of power supply for our Mills. The power and fuel cost for the year has come down on account of the substantial savings from wind mill generation.
The Companies Wind Farm with an installed Capacity of 21.55 MW are working satisfactorily. The wind available was less compared to the Previous Year. There was also continuous interruption in the grid availability during the peak season of the wind. The Division has generated 28.100 Millions Kwh as compared 18.400 Millions Kwh of the Previous Year. The income during the year from the Wind Farm Division was Rs.103.2 Millions as against Rs. 67.100 Millions of Previous Year.
PROSPECTS FOR THE
CURRENT YEAR
The cotton prices during the year continue to prevail at higher levels despite good yield during the last cotton season due to export of cotton. The Interest rates are also showing increasing trend. By concentrating on export market for the premium quality yarn fetching better prices, improving productivity and by taking various measures for production of value added yarn such as Compact Yarn, Gassed Yarn, Elitwist Yarn and Double Yarn and other cost reduction measures, your Directors are hopeful of achieving satisfactory results for the current year.
Fixed Assets:
Land
Building
Plant and Machinery
Electrical Machinery
Furniture and Office Equipments
Vehicles
Loose Tools
HISTORY
The company was incorporated on 24th February 1936 at Rajapalayam in Tamilnadu having Company Registration No. 2298. The company is a manufacturer of yarn of different counts. The company has been functioning successfully for six decades.
During the year 1990-91, the company set up an export oriented spinning mill. The entire output of high quality yarn produced here is being taken up by Mitsubishi Corporation, Japan. It has been decided to implement another export oriented project. Technological guidance will be provided by Unitaka, Japan, which is a large producer of yarn, fabrics and other related products.
During the year 1994-95, as part of modernisation programme, the company installed five crosrol cards imported from the U. K. and two ring spinning frames in place of old equipments. To reduce dependence on conventional energy source, it has installed five 250 KW wind electric generators in Muppandal, Nagarcoil.
As part of diversification plans, it is setting up a tissue culture unit – Shri Ramco Biotech – as a division of the existing company, to produce ornamental and orchard plants for the export and domestic markets.
During the year 1995-96, the company commissioned its second 100% EOU spinning mill with an installed capacity of 11520 spindles. On the export front, the company exported melange yarn worth Rs. 50.0 millions. Its first EOU, Rajapalyam Spintex, exported yarn of Rs. 183.8 millions.
The formalities regarding amalgamation of M/s. Jayaram Mills Limited with the company, as per the order of honourable High Court of Chennai has been completed. As per the scheme 750 shares of Rs. 100 each were allotted to the shareholders of Jayaram Mills Limited.
The EOU – Rajapalaiyam Textiles is being expanded by 3024 spindles at a cost of Rs. 50.0 millions which is finalised by the Term Loan/NCDs and internal accruals, the addition of these spindles is expanded to be completed by August 1998.
Shri Ramco Biotech (Research & Development) unit commenced commercial operation since May 2000, which would contribute earning in foreign exchange for the current year.
The Tissue Culture Unit which was started last year has started its commercial production during May 2000 and have started exporting Plantlets to various countries. Modernisation programme has been taken up at a cost of Rs. 240.0 millions with the assistance from State Bank of India under the Technology Upgradation Fund Scheme. HFO Power Plant has started commissioning 4 Nos. 900 KW & 4 Nos. 770 KW MAN B&W HFO Gensets. Due to this there is a substantial saving in Electricity Cost.
Under the modernisation programme, during the year 2001-02, the company has added the state of the art textile machinery at a cost of Rs. 158.1 millions by taking financial assistance from State Bank of India and ICICI Bank Limited under Technology Upgradation Fund(TUF) Scheme.
The company is in
trade terms with :
Mitsubishi Corporation, Japan
Doko Spinning Company Limited, Japan
Uniace Limited, Japan
Unitika Limited, Japan
A manufacturer of yarn of different counts, Rajapalayam Mills (THE COMPANY) has been functioning successfully for six decades.
During 1990-91, the company set up an export-oriented spinning mill. The
entire output of high quality yarn produced here is being taken up by
Mitsubishi Corporation, Japan. It has been decided to implement another
export-oriented project. Technological guidance will be provided by Unitaka,
Japan, which is a large producer of yarn, fabrics and other related
products.
During 1994-95, as part of its modernisation programme, THE COMPANY
installed five crosrol cards imported from the UK and two ring spinning frames
in place of the old equipment. To reduce dependence on conventional energy
sources, it has installed five 250-KW wind electric generators in Muppandal,
Nagarcoil. As part of its diversification plans, it is setting up a tissue
culture unit - Shri Ramco Biotech - as a division of the existing company, to
produce ornamental and orchard plants for the export and domestic
markets.
During 1995-96, THE COMPANY commissioned its second 100% EOU spinning
mill with an installed capacity of 11,520 spindles. The formalities regarding
amalgamation of M/s Jayaram Mills Ltd with the company, asper the order of
honourable High Court of Chennai has been completed. As per the scheme 750 shares
of Rs 100 each were allotted to the shareholders of Jayaram Mills Ltd. The EOU
- Rajapalaiyam Textiles was expanded by 3024 spindles at a cost of Rs 5 crs
which is financed by Term Loan/NCDs and Internal Accruals, the addition of
these spindles is expected to be completed by August, 1998.
The Tissue Culture Unit which was started last year has started its
commercial production during May 2000 and have started exporting Plantlets to
various countries.Modernisation programme has been taken up at a cost of Rs.24
crores with the assistance from SBI under the Technology Upgradation Fund
Scheme.HFO Power Plant has started commissioned 4 Nos 900 KW & 4 Nos 770 KW
MAN B&W HFO Gensets.Due to this there is a substantial saving in
Electricity Cost.
Under the modernisation programme, during 2001-02, the company has added
the state-of-the-art textile machinery at a cost of Rs.15.81 crores by taking
financial assistance from State Bank of India and ICICI Ltd under Technology
Upgradation Fund(TUF) Scheme. It has installed a new textile machine at a cost
of Rs.11.30 crores under the TUF in 2002-03.
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.42.30 |
|
UK Pound |
1 |
Rs.84.11 |
|
Euro |
1 |
Rs.57.33 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
62 |
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 |
|