MIRA
INFORM REPORT
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Report Date : |
19.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
WINSOME YARNS
LIMITED |
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Registered Office : |
SCO 191-192, Sector 34 A. Chandigarh - 160022 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.07.1990 |
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Com. Reg. No.: |
10566 |
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CIN No.: [Company
Identification No.] |
L17115CH1990PLC010566 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLW10031A |
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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 : |
Manufactures Combed and Carded Cotton Yarn of Different
Counts Ranging from 20s to 40s. |
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 2800000 |
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Status : |
Satisfactory |
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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 and a part of Winsome Group. Directors are reported
as experienced and respectable businessmen. Trade relations are 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 /
Corporate Office : |
SCO 191-192, Sector 34 A. Chandigarh - 160022 |
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Tel. No.: |
91-172-2603966/2662232 /2600594 /2606709 |
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Fax No.: |
91-172-2603804/5088844 |
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E-Mail : |
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Factory 1 (Yarn): |
Village-Kurawala, Tehsil-Derabassi Distt-Patiala (Punjab) |
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Factory 2 (Knitwear): |
Winsome Knitwear (Prop. Winsome Yarns Limited) C-138, Industrial Area, Phase-VIII, Mohali (PB) |
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Market office and Godown : |
LUDHIANA |
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Tel. No.: |
91-161 - 709675 / 709479 |
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Fax No.: |
91-161 - 709675 |
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E-Mail : |
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Market office and Godown : |
12/22, East Patel Nagar, Groud Floor |
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Tel. No.: |
91-11 - 5725462 / 5725627 |
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Fax No.: |
91-11 - 5725627 |
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E-Mail : |
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Representative Agent: |
Ahmedabad |
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Tel. No.: |
91-79 - 2164217 / 2164536 |
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Fax No.: |
91-79 - 2165219 |
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E-Mail : |
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Market office and Godown : |
Mumbai |
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Tel. No.: |
91-22-3411570 |
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Fax No.: |
91-22-3401879 |
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E-Mail : |
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Consignment
Agent (Godown Facility) |
Calcutta |
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Tel. No.: |
91-33 - 2380169 / 7480 |
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Fax No.: |
91-33 - 2391023 |
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E-Mail : |
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Mktg.
Office and Godown: |
Tirupur |
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Tel. No.: |
91-421 - 476394 / 474364 |
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Fax No.: |
91-421 – 470028 |
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E-Mail : |
DIRECTORS
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Name : |
Shri Satish Bagrodia |
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Designation : |
Chairman |
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Name : |
Shri Chandra Mohan |
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Designation : |
Director |
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Name : |
Shri Brij Khanna |
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Designation : |
Director |
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Name : |
Shri S.K. Duggal |
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Designation : |
Director |
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Name : |
Shri Dinesh Sharma |
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Designation : |
Director (IFCI Nominee) |
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Name : |
Shri Ashish Bagrodia |
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Designation : |
Director |
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Name : |
Shri S.K. Singla |
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Designation : |
Director (PSIDC Nominee) |
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Name : |
Shri Manish Bagrodia |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Name : |
Shri K.V. Singhal |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters/Persons acting in concert |
17964609 |
70.00 |
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Financial Institutions/Banks/Mutual Funds |
502294 |
1.96 |
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NRIs |
161583 |
0.63 |
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Bodies Corporates |
1759129 |
6.85 |
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Indian Public |
5278364 |
20.56 |
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Total |
25665979 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufactures Combed and Carded Cotton Yarn of Different Counts
Ranging from 20s to 40s |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Yarn |
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73,440 Spindles
and 1536 Rotors |
49,824 Spindles |
-- |
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Knitwears |
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216000 Nos |
192000 Pcs |
-- |
GENERAL
INFORMATION
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Bankers : |
Canara Bank State Bank of Patiala |
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Facilities : |
NOTES : 1. Term Loans of Rs 26.589 Millions (PY- Rs 78.198 Millions) from IFCI
and Rs.100.000 Millions (PY-Rs. 7.816 Millions) from banks are secured by mortgage
of immovable properties situated at Village Kurawala, Distt Patiala and
hypothecation of all the company's movable properties (save & except book
debts) including moveable plant & machinery, machinery spares, tools and
accessories both present and future, subject to the prior charges created/to
be created in favour of Company's bankers on specified movable for the
working capital facilities. Such Loans are also guaranteed by two directors.The Mortgage and Charges
created shall rank pari-passu 'inter-se' between IFCI and Banks. Term Loans
from Banks of Rs. 257.178 Millions (PY-Rs 192.709 Millions) under TUF Scheme
are secured by way of hypothecation on Plant & Machinery and other assets
purchased thereunder. 2. Vehicle Loan Outstanding Rs 0.079 Millions ( Previous Year Rs 0.316
Millions) is secured by hypothecation of vehicle purchased thereunder. Amount repayble within one year Rs.0.079 Millions (PY Rs0.254 Millions). 3. Packing Credit Loan is secured by hypothecation of current assets and
also secured by second charge on fixed assets of the company and guaranteed
by two directors.
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s. Lodha & Co. Chartered Accountants, |
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Address : |
12, Bhagat Singh Marg, New Delhi |
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Associates/Subsidiaries : |
Winsome Textile Industries Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
27500000 |
Equity Shares |
Rs.10/- each |
Rs. 275.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
26045579 |
Equity Shares |
Rs.10/- each |
Rs.260.456 |
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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1] Share Capital |
257.821 |
257.821 |
257.821 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
443.706 |
391.884 |
370.530 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
701.527 |
649.705 |
628.351 |
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LOAN FUNDS |
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1] Secured Loans |
713.932 |
574.110 |
518.389 |
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2] Unsecured Loans |
0.000 |
82.485 |
110.071 |
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TOTAL BORROWING |
713.932 |
656.595 |
628.460 |
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DEFERRED TAX LIABILITIES |
158.268 |
180.291 |
177.687 |
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TOTAL |
1573.727 |
1486.591 |
1434.498 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
989.785 |
949.894 |
912.206 |
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Capital work-in-progress |
28.435 |
3.219 |
0.879 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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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Inventories |
379.973
|
392.229
|
369.289 |
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Sundry Debtors |
128.687
|
133.640
|
131.120 |
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Cash & Bank Balances |
42.567
|
34.456
|
37.583 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
139.041
|
142.203
|
173.403 |
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Total
Current Assets |
690.268
|
702.528 |
711.395
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
134.761
|
150.480
|
171.588 |
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Provisions |
0.000
|
18.570
|
18.394 |
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Total
Current Liabilities |
134.761
|
169.05 |
189.982
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Net Current Assets |
555.507
|
533.478
|
521.413 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1573.727 |
1486.591 |
1434.498 |
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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 |
1193.168 |
1233.540 |
1214.931 |
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Other Income |
4.640 |
0.000 |
0.000 |
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Total Income |
1197.808 |
1079.575 |
1061.680 |
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Profit/(Loss) Before Tax |
53.966 |
40.294 |
39.459 |
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Provision for Taxation |
(12.489) |
4.304 |
21.984 |
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Profit/(Loss) After Tax |
66.455 |
35.990 |
17.475 |
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Earnings in Foreign Currency : |
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Export Earnings |
713.751 |
0.000 |
0.000 |
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Interest realization |
0.942 |
0.000 |
0.000 |
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Other Earnings |
0.000 |
548.619 |
683.823 |
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Total Earnings |
714.693 |
548.619 |
683.823 |
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Imports : |
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Raw Materials |
1.138 |
0.000 |
0.000 |
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Stores & Spares |
13.081 |
0.000 |
0.000 |
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Plant and Machinery |
9.431 |
0.000 |
0.000 |
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Others |
0.000 |
273.729 |
337.363 |
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Total Imports |
23.650 |
273.729 |
337.363 |
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Expenditures : |
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Raw Material Consumed |
609.167 |
0.000 |
0.000 |
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Cotton Purchase Yarn |
6.566 |
0.000 |
0.000 |
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Manufacturing and Expenses |
398.799 |
0.000 |
0.000 |
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Other Expenditure |
0.000 |
1079.575 |
1061.680 |
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Total Expenditure |
1014.532 |
1079.575 |
1061.680 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
|
Sales
Turnover |
314.800 |
355.400 |
299.700 |
|
Other
Income |
00.800 |
01.300 |
03.100 |
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Total
Income |
315.600 |
356.700 |
302.800 |
|
Total
Expenditure |
253.200 |
293.700 |
25.300 |
|
Operating
Profit |
62.400 |
63.000 |
67.500 |
|
Interest |
15.000 |
19.900 |
19.300 |
|
Gross
Profit |
47.400 |
43.100 |
48..200 |
|
Depreciation |
18.200 |
18.200 |
18.800 |
|
Tax |
00.000 |
00.000 |
00.000 |
|
Reported
PAT |
29.200 |
24.900 |
29.400 |
200606: Expenditure Includes (Increase) / Decrease in Stock in
Trade Rs (11.10) million Consumption of Raw Materials Rs 164.30 million Staff
Cost Rs 12.70 million Power & Fuel Rs 35.00 million Other Expenditure Rs
52.30 million EPS is Basic & Diluted 1. The above results have been taken
on record by Board of Directors in their meeting held on July 28, 2006. 2.
Provision for Taxation if any shall be made at the year end. 3. The Company's
operations during the quarter predominantly comprises of only one segments
Textiles (Yarn & Knitwear). 4. The Company has undertaken Expansion
Projects to add 60,000 Spindles, 180 Knitting Machines and 3.90 MW Hydro Power
Plant at estimated cost of Rs. 3287.30 million, which is being financed by Term
Loans under TUFS and Internal Accruals. 5. Audit Qualification (a) provision
for depreciation on Plant & Machinery has been provided as per the rates
applicable to continuous process plant based on Technical evaluation.(b)No
provision has been made for shortfall in recovery (amount Unascertainable)
against debts aggregating Rs 16.037 million ( Rs 16.557 million as on March 31,
2006 for which legal and other persuasive actions for recovery has been
initiated. since in the opinion of the Company these debts are good for
recovery. 6. Previous Period's figures have been regrouped / rearranged wherever
considered necessary. 7. The Company has received one grievance / complaint
from SEBI, Delhi during the quarter ended on June 30, 2006. The same has been
resolved and replied.
200609 Expenditure Includes (Increase) / Decrease in Stock
in Trade Rs (11.80) million Consumption of Raw Materials Rs 171.60 million
Staff Cost Rs 14.60 million Power & Fuel Rs 37.10 million Other Expenditure
Rs 82.20 million EPS is Basic & Diluted Status of the Investors Complaints
for the quarter ended September 30, 2006 Complaints Pending at the beginning of
the quarter Nil Complaints received during the quarter 05 Complaints disposed
off during the quarter 05 Complaints unsolved at the end of the quarter Nil 1.
The above results have been taken on record by Board of Directors in their
meeting held on October 30, 2006. 2. Provision for Taxation if any shall be
made at the year end. 3. The Company's operations during the quarter
predominantly comprises of only one segments Textiles (Yarn & Knitwear). 4.
The Company has undertaken Expansion Projects to add 60,000 Spindles, 180
Knitting Machines and 3.90 MW Hydro Power Plant at estimated cost of Rs 3287.30
million, which is being financed by Term Loans under TUFS and Internal
Accruals. 5. There was fire on July 20, 2006 in Cotton Godowns of the Company.
The Company has filed insurance claim of Rs 32.50 million, which is expected to
be received within next 15 days. 6. Audit Qualification (a) provision for
depreciation on Plant & Machinery has been provided as per the rates applicable
to continuous process plant based on Technical evaluation.(b)No provision has
been made for shortfall in recovery (amount Unascertainable) against debts
aggregating Rs 16.037 million ( Rs 16.557 million as on March 31, 2006) for
which legal and other persuasive actions for recovery has been initiated. since
in the opinion of the Company, these debts are good for recovery. 7. Previous
Period's figures have been regrouped / rearranged wherever considered
necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.01 |
1.01 |
0.85 |
|
Long Term Debt-Equity Ratio |
0.55 |
0.62 |
0.56 |
|
Current Ratio |
1.10 |
1.17 |
1.45 |
|
TURNOVER RATIOS |
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|
|
Fixed Assets |
0.87 |
0.89 |
0.93 |
|
Inventory |
3.30 |
3.19 |
3.53 |
|
Debtors |
9.71 |
9.18 |
8.14 |
|
Interest Cover Ratio |
1.96 |
1.86 |
1.75 |
|
Operating Profit Margin(%) |
14.40 |
12.67 |
12.99 |
|
Profit Before Interest And Tax Margin(%) |
8.68 |
7.15 |
7.79 |
|
Cash Profit Margin(%) |
10.94 |
8.48 |
6.69 |
|
Adjusted Net Profit Margin(%) |
5.22 |
2.96 |
1.48 |
|
Return On Capital Employed(%) |
8.12 |
6.78 |
7.03 |
|
Return On Net Worth(%) |
9.84 |
5.63 |
2.48 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.(0.01) |
|
Low |
Rs.(0.01) |
LOCAL AGENCY
FURTHER INFORMATION
History
Incorporated on 19 Jul.'90,
Winsome Yarns was promoted by Winsome Textile Industries in the joint sector
with the Punjab State Industrial Development Corporation. The company
manufactures combed and carded cotton yarn of different counts ranging from 20s
to 40s. Its products are mainly used by the knitting and weaving industries for
making various fabric.
The company came out with a public issue in Oct.'93 to part-finance the
cost of setting up a 100% export-oriented spinning mill with 23,040 spindles to
manufacture cotton yarn. The unit commenced commercial production with effect
from 1 Apr.'94. Due to the change in the product-mix requirement, some
balancing equipment was acquired and installed, for which the company obtained
financial assistance from an equipment financing scheme of IFCI.
Company has implementing capacity addition of 25824 spindles. The
additional capacity has been financed by internal accruals and term loans from
IFCI & Canara Bank. Company is confident that commercial production has
been commenced from 1st April, 1999. The company is planning to go buy-back of
shares and process is going on.
New Project/Expansion
Plans
In order to replace machines & equipments installed during 1992 to
1994. the Company has undertaken a project to replace 23040 Spindles, 4
Autoconers, 1 D G Set besides buying balancing equipments at 3 Cards 2 Draw
games and 66 KVA Power supply line instead of 11 KVA. The cost of project is
estimated at Rs. 168.500 Millions. which will be financed by Term Loans of Rs.
137.500 Millions under TUFs from Banks and balance Rs 31.000 Millions from
Internal Accruals. The project is expected to be fully completed by March.
2006. This will help in increasing productivity and lower maintenance cost,
these by resulting in higher profitability.
IS/ISO 9002/14001
During the year 2004-05, one Surveillance Audit was carried out by
Bureau of Indian Standards. Their systems have been found well established and
confirming to laid down procedures of IS/ISO 9002/14001.
Operations & Performance
During the year under review, your Company has achieved a turnover of
Rs. 1273.164 Millions and a net profit
before tax of Rs. 53.966 Millions against the previous year's sales of Rs.
1214.737 Millions and net profit of Rs. 40.294 Millions. The company has shown
improved performance mainly due to better yarn rates, softening of cotton
prices and improved efficiency.
For the current year 2006-07, no substantial increase is anticipated in
cotton prices till the arrival of new cotton
crop in October, 2006. Even for the new cotton crop, projections of the
cotton crop quantity appear to be
good and with good demand for yarn and opening up of world trade due to
abolition of quotas since 1.1.2005,
your directors expect a good performance of the company for the
Financial Year 2006-07.
MANAGEMENT ANALYSIS AND DISCUSSION REPORT
INDUSTRY SCENARIO
The textile and clothing industry is the largest and prominent sector in
Indian Economy in terms of manufacturing, foreing exchange earnings and
employment generation. Spun yarn is the basic material for composite/ waving
mills, handlooms and hosiery sectors. In 2005 spun yarn market size was around
Rs.350.000/- Millions with total production of 3100 million kgs. Out of which
cotton yarn had 69% market share in terms of value, blended yarn had 19% market
share in terms of value. 100% non cotton yarn market share was only 12%.
EXPORT MARKET
Cotton yarn is one of the biggest export commodity having total export
of around 450 million kg in 2005,
in terms of value it was around 60000.000 Millions.The Indian textile
industry in the first year of non-quota regine
registred a growth in exports to US by 27% in 2005. With India's
advantage of cheap skilled labour and access
to low cost cotton, it is estimated that the textile exports could grow
by as much as 35% over the next 5 years
with India's share doubling from the current 4% of global textile
exports. For achieving this vision the
government has als taken many initiatives like liberalization of FDI
policy, export promotion capital goods
scheme, advance licensing scheme, duty exemption pass book scheme etc.
BUDGET 2006-2007
In Budget 2006-2007 the allocation to Technology Upgradation Fund (TUF) enhanced
from Rs. 4.4 billion to
Rs. 5.4 billion. Higher allocation to the TUF is a step in the right
direction. This would encourage existing
textile mills to avail loans on favourable terms as interst subsidy is
also being offered to borrowers through
the TUF route.
MARKET INFLUENCING FACTORS
• Fluctuations in Fiber cotton prices, as it comprises major portion of
manufcturing cost.
• Export demand from main importing countries.
• Fluctuation in currency value.
• World production, consumption, import, export and ending stocks.
• Demand for filament yarn and nonwovens.
MANAGEMENT'S PHILOSOPHY ON QUALITY
Management's quality policy is to: "Provide reliable high-quality
products to customers".
Under this policy, every employee of the Company from top to bottom is
committed to quality assurance
activities that span the complete product cycle from initial planning
through development, design, massproduction,
and shipment and constantly strives to improve by making quality,
reliability, and customer satisfaction our number one priority. The Company
strive to develop the latest techniques that will meet its customers' needs. In
this process as well the Company never lose sight of its quality and
reliability goals.
Based on the above quality policy, the Company has implemented a quality
and reliability system that meets
the international quality assurance standard, and achieved IS/ISO 9002/
14001 certification.
The Management is building a system that can reliably create
high-quality, high-reliability products and at
the same time working hard to constantly improve quality and reliability
that are reassuring to customers under
the "Better Quality" motto.
Fixed Assets
Tangible Assets
Freehold Land
Leasehold Land
Building
Plant and Machinery
Furniture and Fixture
Vehicles
Intangible Assets
Specialised Software
As Per Web Site:
The company put down its roots with a trading company in Calcutta in
1952.
With an eye on increasing business opportunities being offered by the
textile industry, Winsome established a spinning unit at Baddi in Himachal
Pradesh in 1980. Since then their textile ventures are :
WINSOME TEXTILE
INDUSTRIES LTD 50,000
Spindles
9,500 kgs per day of fibre/yarn dyeing
WINSOME YARNS LTD
( 100% E.O.U.) 50,000
Spindles
All their spinning units are equipped with latest machinery from Reiter,
Lakshmi, Schlafhorst and Murata. Special stress has been given to minimise
contamination, both at pre-spinning and post-spinning stages by adding machines
like Vision Shield in Blow Room and Schlafhorst-338 with LOEPFE - 9001 (SIRO
CLEANER) Contamination Control Channel at winding stage.
The dye house is a fully imported plant with precision winder from SSM,
dyeing vessels from Cubotex, hydro extractor from Galvanin & R/F dryer from
Stalam. They can develop any shade in Melange / package dyed / fiber dyed yarns
here.
Products:
Subject can offer following in knitting and weaving both in single and
double count:
Fibre Yarn
100% Cotton 
100% Acrylic
Cotton Blends with
:
Viscose
Polyester
Modal 
Silk
Wool
Acrylic
Flax/Linen
With spindlage capacity of 1,00,000 and dye house with capacity to
produce 9500 kgs per day of dyed yarn & fibre they can ensure regular
supply of yarn throughout the year.
They have experience to understand and are well equipped to meet their
customers requirement.
Some of the salient features are :-
·
Most Modern Lab equipped with latest shade and sample developing
machines for quick sampling and shade matching as per customers requirement.
·
Deliver small and large lot sizes quickly as per requirements.
·
Quick response time and ability to deliver yarn customised to client's
requirement.
·
There are traders in U.K. who maintain stock of selected shades and
counts for quick delivery in Europe.
·
Availability of EEC quota for shipments to Europe.
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.40.78 |
|
UK Pound |
1 |
Rs.81.79 |
|
Euro |
1 |
Rs.55.66 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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 |
|