MIRA
INFORM REPORT
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Report Date : |
13.08.2007 |
IDENTIFICATION DETAILS
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Name : |
AKRUTI NIRMAN LIMITED |
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Registered Office : |
Akruti Trade Centre, Road No. 7, Marol (MIDC), Andheri (East), Mumbai
– 400093, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.02.1989 |
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Com. Reg. No.: |
050688 |
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CIN No.: [Company
Identification No.] |
L45200MH1989PLC050688 |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Real Estate Developers |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 20073184 |
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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 in the ever growing
Indian Real Estate industry. Fundamentals are strong and healthy. Payments are
reported as correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Akruti Trade Centre, Road No. 7, Marol (MIDC), Andheri (East), Mumbai
– 400093, |
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Tel. No.: |
91-22-67037427 / 67037400 |
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Fax No.: |
91-22-28218230 |
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Website : |
DIRECTORS
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Name : |
Mr. Hemant M. Shah |
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Designation : |
Executive Chairman |
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Name : |
Mr. D. R. Kaarthikeyan |
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Designation : |
Director |
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Name : |
Mr. P. H. Ravikumar |
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Designation : |
Director |
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Name : |
Mr. Shailesh V. Haribhakti |
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Designation : |
Director |
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Name : |
Mr. Shailesh H. Bathiya |
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Designation : |
Director |
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Name : |
Mr. Vyomesh M. Shah |
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Designation : |
Managing Director |
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Name : |
Mr. Madhukar B. Chobe |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. A Ramkrishnan |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. E.C. Paulose |
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Designation : |
Chief Civil Engineer |
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Name : |
Mr. Col. R.S. Malik |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. Rajendra K. Shah |
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Designation : |
Chief Finance Officer |
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Name : |
Mrs. Usha C. Moraes |
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Designation : |
Chief Investment Office |
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Name : |
Mr. Mayur D. Shah |
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Designation : |
Chief Marketing Officer |
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Name : |
Mr. Kamal M. Matalia |
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Designation : |
Chief Audit Officer |
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Name : |
Mr. Charuta M. Malshe |
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Designation : |
Chief Administrative Officer |
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Name : |
Mrs. Nancy S. Pereira |
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Designation : |
Chief Accounts Officer |
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Name : |
Mr. Chetan S. Mody |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of promoter and Promoter Group |
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1. Indian |
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a) Individuals / Hindu Undivided Family |
48408000 |
89.05 |
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b) Bodies Corporate |
600000 |
0.91 |
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1. Institutions |
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a) Mutual Funds / UTI |
320906 |
0.48 |
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b) Financial Instiutions / Banks |
113441 |
0.17 |
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c) Insurance Companies |
50 |
0.000 |
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d) Foreign Institutional Investors |
1539365 |
2.30 |
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2. Non –
Institutions |
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a) Bodies Corporate |
1481645 |
2.22 |
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b) Individuals – i. individuals shareholders nominal share capital up t o Rs.0.100
million ii. individuals shareholders nominal share capital in excess of
Rs.0.100 million |
2963976 11183847 |
4.44 16.76 |
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c) Any other (specify) i. clearing member ii. foreign national iii. non-resident Indians (repatriation) |
65239 1000 22431 |
0.09 0.00 0.03 |
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Total |
66700000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Real Estate Developers |
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GENERAL INFORMATION
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Bankers : |
♦
Canara Bank ♦
Bank of ♦
Corporation Bank ♦
HDFC Bank Limited ♦
ICICI Bank Limited ♦
Punjab National Bank ♦
State Bank of ♦
Union Bank of ♦
IDBI Bank |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
˛
Dalal and Shah Chartered Accountants ˛
Viral D. Doshi and Company Chartered Accountants |
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Associates/Subsidiaries : |
˛
Akruti Guestline Private Limited ˛
Citygold Farming Private Limited ˛
Akruti City Knowledge Private Limited ˛
Akruti City Farming Private Limited ˛
Rushank Construction Private Limited ˛
Gandhi Adhivitiya Combine ˛
Suraksha Realtors Subsidiary Companies: ˛
Agreem Properties Limited ˛
Adhivitiya Properties Limited ˛
Akruti Centre point Infotech Limited ˛
Akulpita Construction Limited ˛
Arnav Properties Limited ˛
Brainpoint Infotech Limited ˛
E Commerce Solutions ( ˛
Sheshan Housing and Area Development Engineers
Limited ˛
TDR Properties Limited ˛
Vaishnavi Builders and Developers Private Limited ˛
Vishal Nirman ( ˛
Vishal Tekniks (Civil) Limited Associate Companies and Joint Ventures / Partnership Firms: ˛
DLF Akruti Info Parks (Pune) Limited ˛
Gallant Infotech Private Lmited ˛
Infrastructure Ventures India Limited ˛
Akruti Chandan JV ˛
Akruti GM JV ˛
Pristine Developers ˛
Jairaj Developers – Unit 9 ˛
Mangal Shrusti Gruh Nirmiti Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
125000000 |
Equity Shares |
Rs.10/- each |
Rs.1250.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
66700000 |
Equity Shares |
Rs.10/- each |
Rs.667.000
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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667.000 |
480.000 |
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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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4351.296 |
587.852 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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5018.296 |
1067.852 |
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LOAN FUNDS |
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1] Secured Loans |
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2819.837 |
891.149 |
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2] Unsecured Loans |
|
3.026 |
3.812 |
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TOTAL BORROWING |
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2822.863 |
894.961 |
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DEFERRED TAX LIABILITIES |
|
1.309 |
6.351 |
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TOTAL |
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7842.468 |
1969.165 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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867.789 |
858.485 |
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Capital work-in-progress |
|
2.670 |
0.000 |
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INVESTMENT |
|
2651.257 |
197.780 |
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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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1484.169 |
1041.748 |
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Sundry Debtors |
|
716.019 |
24.724 |
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Cash & Bank Balances |
|
1309.786 |
51.547 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
1602.761 |
382.802 |
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Total
Current Assets |
|
5112.735 |
1500.821 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
542.094 |
472.895 |
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Provisions |
|
249.889 |
115.026 |
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Total
Current Liabilities |
|
791.983 |
587.921 |
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Net Current Assets |
|
4320.752 |
912.900 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
|
7842.467 |
1969.165 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
|
1778.877 |
1712.895 |
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Other Income |
|
99.933 |
302.118 |
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Total Income |
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1878.811 |
2015.013 |
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Profit/(Loss) Before Tax |
|
754.778 |
630.951 |
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Provision for Taxation |
|
(471.746) |
(38.999) |
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Profit/(Loss) After Tax |
|
1226.524 |
669.950 |
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Expenditures : |
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Cost of Construction |
|
1018.167 |
941.685 |
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Administrative Expenses, Selling and General
Expenses |
|
159.212 |
42.855 |
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Increase/(Decrease) in Finished Goods |
|
(523.918) |
176.400 |
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Interest and Financial Charges |
|
199.776 |
60.099 |
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Depreciation & Amortization |
|
61.375 |
47.801 |
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Other Expenditure |
|
114.878 |
85.081 |
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Total Expenditure |
|
1029.490 |
1353.921 |
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KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
65.28 |
33.24 |
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Net Profit Margin (PBT/Sales) |
(%) |
|
44.11 |
36.83 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
13.12 |
26.74 |
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.15 |
0.59 |
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Debt Equity Ratio (Total Liability/Networth) |
|
|
0.15 |
0.55 |
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Current Ratio (Current Asset/Current Liability) |
|
|
6.45 |
2.55 |
LOCAL AGENCY FURTHER INFORMATION
Director’s Report
PERFORMANCE
REVIEW :
During
the year under review, income from operations increased by 3.85 % to
Rs.1778.900 millions from
Rs.1712.900
millions in the previous year. The Company achieved operating profit (PBIDT) of
Rs.1110.500 millions. After providing for interest of Rs.199.800 millions,
depreciation of Rs.61.400 millions and taxation including prior period
adjustments of Rs.90.600 millions, the net profit stood at Rs.758.700 millions
which is higher by 21.9% as against Rs.622.100 millions in the previous year.
OPERATIONAL
PERFORMANCE :
The
general business environment continued to remain robust backed by healthy
growth in the economy which is driving the real estate sector’s growth. The
current upswing in the real estate sector is the result of a number of factors.
Growing economy, expanding service sector, rising disposable income and
affluence, supportive government policies have all lent momentum to this
rapidly growing sector.
The
real estate sector in
The
Company continued to augment its land bank (short term and long term) and
towards this end, efforts continue in order to avail of the opportunities
available for organic growth and increase in the market share in the industry. The
Company will pursue its policy to expand geographically across major cities of
the country to achieve its goal of strategic growth in terms of volume as well
as geographical spread. The Company has also entered into strategic joint
ventures with certain leading real estate development companies for some of its
projects on a profit sharing basis. Collaborating strategically with other
firms reduces the capital investment required and helps leverage development
capabilities. It allows the Company to benefit from an enhanced pool of
construction and marketing expertise and experience, as well as facilitate
expansion into additional geographic areas and business lines. The Company has
in-house expertise and capability in construction and project management, development
consultancy, sales and marketing, thereby making the Company vertically
integrated. This enables the Company to meet project timelines and commitments
and ensuring that the highest levels of technical and service standards are
met. The Company is actively involved in the development of Commercial / IT
Parks, Retail Space and Residential Complexes and plans to venture into SEZs
and integrated townships in the near future.
RESIDENTIAL
The
Company is developing a number of residential real estate projects, which are
located in Mumbai and Thane. During the year under review, the Company
commenced construction of residential space independently and in conjunction
with our joint venture partners.
COMMERCIAL
All
the completed commercial properties of the Company have 100% occupancy rate.
AUTOMATED
CAR PARKING
The
Company has nearly completed the construction of a 20 storey innovative and
fully mechanized car park tower namely, Akruti Elite Car Park with a capacity
of 240 cars at Bhulabhai Desai Road, Mumbai, using fully automated technology
imported from Europe. The car park is expected to be operational by year end.
RETAIL
During
the year under review, the Company also commenced construction of lettable
retail space independently
and in
conjunction with our joint venture partners.
CHANGE
OF COMPANY NAME :
The
Board has proposed, subject to approval of shareholders and Central Government,
the change of Company name from Akruti Nirman Limited to AKRUTI CITY LIMITED
and the explanatory statement appended to the Notice of Annual General
Meeting deals with the logic and rationale for the proposed change.
SHARE
CAPITA :
During
the year under review, the Company made its maiden IPO of 67,00,000 equity
shares of Rs.10 each through 100 % book building process. The issue was priced
at Rs.540 per share. The issue was oversubscribed 81 times. The equity shares
of the Company were listed on Bombay Stock Exchange Limited (BSE) and National
Stock
Exchange of India Limited (NSE) on February 7, 2007. Consequent to IPO, the
paid-up share capital of the
Company
increased from Rs.600.000 millions to Rs.667.000 millions.
INDUSTRY
STRUCTURE AND DEVELOPMENT
a.
repeal of Urban Land Ceiling Act by several State Governments;
b.
modification in the Rent Control Act that provides greater protection to
homeowners;
c.
rationalization of property tax in a number of States; and
d.
Foreign Direct Investment (FDI) now being permitted in the real estate sector
subject to fulfillment of certain conditions.
e.
proposed computerization of land records.
The
trend towards greater organisation and transparency has contributed to the
development of reliable indicators of value and organized investment in real
estate sector by domestic and international financial institutions and has also
resulted in greater availability of finance for real estate developers.
The
real estate sector is a major employment driver, being the second largest
employer next to agriculture. This is because of the chain of backward and
forward linkages that the sector has with the other sectors of the economy,
especially with housing and construction sectors. Regulatory changes permitting
foreign direct investment and setting up of real estate mutual funds and real
estate investment trusts are expected to further increase investment in Indian
real estate sector. Though real estate demand continues to be largely led by
IT, ITES and BPO sectors, the demand for real estate sector has also been
driven by other industries such as telecom, insurance, banks and financial
institutions, financial services firms, consulting firms, media, airlines,
logistics, etc.
The
Company's business portfolio may be broadly classified into segments as below:
RESIDENTIAL
REAL ESTATE:
With
a growing population and increasing urbanization, the joint family system
giving way to formation of nuclear families, rise in disposable income coupled with
the propensity to spend fuelled by a rise in employment opportunities, the
demand for housing in India as it stands today far exceeds the supply. Changes
in demographics, growth in disposable income, reduction in average family size,
urbanization, etc. have contributed to faster rise in demand in this segment.
COMMERCIAL
REAL ESTATE:
The
commercial real estate market in
Large
scale requirements by IT / ITES sector has lead to real estate growth being
spread beyond chief business locations to suburban and peripheral locations of
major cities. IT, ITES and related sectors are estimated to account for over 70
% of net demand. It is expected that
RETAIL
REAL ESTATE:
Indian
market and variations of the consumer profile portend a bright future for the
sustained growth of the Indian retail sector. Driven by changing lifestyles,
strong income growth and favourable demographic patterns,
Indian
retail is expected to grow 25 percent annually.
SPECIAL
ECONOMIC ZONES:
Special
Economic Zones (SEZs) are specifically delineated duty free enclaves deemed to
be foreign territories for purposes of Indian Custom controls, duties and
tariffs. SEZs by virtue of their size, are expected to be a significant new
source of real estate demand in future.
OPPORTUNITIES
AND THREATS :
Regulatory
reforms initiated by the Government and the entry of private equity and mutual
funds are expected to provide greater transparency and higher funding of the
industry apart from providing necessary transparency to transactions in the
sector. This in turn is expected to ensure larger capital supply to real estate
market thereby speeding up the pace of development of real estate market.
Relaxation of Foreign Direct Investment (FDI) eligibility norms relating to the
reduction of built-up area for commercial real estate projects to 50,000 mtrs.
And minimum threshold land area for integrated townships to 25 acres from 100
acres of land have also provided much needed impetus for faster growth of real
estate industry. The Company is keeping a close watch on emerging opportunities
in the industry with a view to convert these opportunities into profitable
projects.
Taxation
benefits applicable to SEZs are also expected to push up the demand for real
estate. The Company is enhancing its competitive heads through entry into this
sunrise segment of Special Economic Zone. The SEZ for
DLF
Akruti IT Park at Pune has been sanctioned by the Government of India and
proposals for additional SEZs focusing on IT and IT services in Mumbai and Pune
are underway.
Land
is a key input for the real estate industry. The prices of land have increased
speculatively to unsustainable levels and are an area of concern to the
management. In order to remain competitive in the business, the
Company
is adopting a hedging strategy of buying land on a continuous basis in order to
buoy up its land bank and simultaneously converting the land bank into
commercial projects independently and through joint ventures with reputed
partners.
The
Union Budget of 2007 has been disappointing on certain key areas affecting our
sector. Non-extension of tax exemption under Section 80(IB) of the Income Tax
Act would put further pressure on prices of residential properties and affect
the overall demand. Imposition of service tax on rentals of commercial
properties will also make commercial properties more expensive
Tightening
of regulations on lending to real estate sector by the measures announced by
Reserve Bank of
Tax
benefits to Software Technology Parks of India (STPI) units end in 2009. The
sustained GDP growth, the real estate sector's turnaround, increased purchasing
power leading to retail revolution, malls and townships, the residential and
construction boom, are all a direct or indirect fallout of IT sector's growth.
Should IT/ITES companies relocate themselves, this may put pressure on demand
for commercial real estate and act as dampeners for growth.
During
the year under review, the Company reported an increase from operations by 3.85
% at Rs.1778.900 millions as against Rs.1712.900 millions in the previous year.
Profit before tax was higher by 28.47 % at Rs.849.300 millions as against
Rs.661.100 millions in the previous year. Net Profit after tax and prior period
adjustments was higher by 21.96% at Rs.758.700 millions as against Rs.622.100
millions in the previous year. Barring unforeseen development, the Company is
expected to maintain the pace of growth in both, sales income and profitability
in the current year. The Company has signed a Memorandum of Understanding with
Gujarat State Biotechnology Mission and TCG Urban Infrastructure Holding
Limited for developing and operating a biotech park at Savli, near Vadodara,
The
small metros are expanding fast and the Company is looking at expanding
operation in some of these locations. As part of growth strategy, the Company
plans to expand into other cities to give it a pan
The
Company also plans to diversify into new business lines such as
The
Company has also entered into strategic joint venture agreements with real
estate development companies for some of its projects on a profit sharing
basis. Collaborating strategically with other firms reduces the capital
investment required and helps leverage development capabilities. It also allows
the Company to benefit from an enhanced pool of construction and marketing
expertise and experience, and facilitates expansion into additional geographic
areas and business lines.
Land
acquisition is an ongoing exercise and the Company is planning to augment its
presence in the industry by venturing into newer locations, which offer
potential for development. Efforts are continuing to augment the land bank that
will take care of the growth requirement for the next few years.
MANAGEMENT
DISCUSSION AND ANALYSIS
The
Company has a large pool of experienced engineers and planners, covering the
entire range of skills from planning and design to execution, focused on
quality of construction and finishes. The Company has set a consistent track
record of completing projects within the time and cost schedules. The systems
and procedures are well laid out and documented. The Company maintains high
standards in quality and timely completion of projects, adopts latest
innovation and dedicated services and accordingly, has been accredited with ISO
9001: 2000 management system certificate from Det Norske Vertias
REVENUE
RECOGNITION
Revenue
from Construction Activity:
i. Revenue
from sale of finished properties / buildings is recognized on transfer of
property and once significant risks and rewards of ownership have been
transferred to the buyer. Similarly, revenue from sale of Transferable
Development
Rights (TDR) is recognized on transfer of the rights to the buyer. Revenue
recognition is postponed to the extent of significant uncertainty.
ii.
Revenue from sale of incomplete properties is recognized on the basis of
percentage of completion method, determined on the basis of physical proportion
of the work completed, as certified by the
Company’s
technical personnel, in relation to a contract or a group of contracts within a
project, only after the work has progressed to the extent of 40% of the total
work involved. Variations in estimates are updated periodically by technical
certification. Further, revenue recognized in the aforesaid manner and related
costs are both restricted to 90% until the construction activity and related
formalities are substantially completed. Costs of construction / development
are charged to the profit and loss account in proportion with the revenue
recognized during the year. The balance cost are carried as part of ‘Incomplete
projects’ under inventories. Amounts receivable / payable are reflected as
Debtors / Advances from Customers, respectively, after considering income
recognized in the aforesaid manner.Recognition of revenue relating to
agreements entered into with the buyers, which are subject to fulfillment of
obligations / conditions imposed by statutory authorities, is postponed till
such obligations are discharged. The Company was recognizing revenue as per the
completed building project method, upto the financial year ended 31st March,
2006. The change to the percentage of completion method, to the extent
applicable, has been adopted in pursuance of the guidance note on recognition
of revenue by real estate developers, issued by the Institute of Chartered
Accountants of India, during the year (Attention is invited to Note 24)
iii.
Value of Floor Space Index (FSI) generated is recognized as Inventory, at the
rates quoted by the Stamp
Duty
Ready Reckoner issued by the State Government, in the year of completion of the
agreed property
(viz.
Inventory
held for sale or utilization in construction of projects undertaken for sale.
The FSI value is considered as a part of construction cost of sale building, on
the basis of weighted average for each project.
Growth
through Innovation
In the early years of growth, the company primarily
undertook civil engineering and development jobs for the government and the
defense forces. After completing many successful projects, in the year 1986,
the company decided to venture into residential construction projects.
Having established itself as a quality real estate solutions provider, the
company took a step to address its commitment to the city and its citizens. It
embarked on its first Slum rehabilitation venture in 1995. Today the company
has diversified into commercial projects, infrastructure projects and retail.
Through these years, innovation has
been the hallmark of Akruti.
Over
the years, the company has achieved many “firsts”
- It is the first construction company to
be awarded both the ISO 9001 as well as CRISIL rating for its quality
processes and its financial as well as project management strengths.
- Akruti is the first private,
non-governmental company to have successfully completed a slum
rehabilitation project in Mumbai.
- The company has the highest number of
completed and on going SRA projects.
- Akruti is also the first company to
have completed a Tenent’s rehabilitation project – a joint undertaking
between a public amenities body, the MCGC, and a private limited company.
- Akruti has
the distinction of being the first private company to have completed a
state of the art registered IT Park.
Corporate overview:
Real estate with REAL Values
Subject is a dynamic construction and real estate group
involved in the development, sale and lease of commercial, residential, retail,
and industrial property.
Our corporate mission is to be among the top five real estate developers in
Not
merely customer centric
Subject is a leading real estate
developer in Mumbai city. The company is deeply committed to the city and is
involved in many projects that will fundamentally change the face of the city
and the lives of its citizens. Akruti’s commitment is often called the “3C’s”. A commitment to the city, to its customers
and to citizens. The numerous Slum Redevelopment Projects
that the company has undertaken best exemplify this commitment.
The
Mumbai connection
Nothing
can quite describe the symbiotic relationship between Akruti and the city of
Subject is a predominantly Urban construction and real estate company that is
involved in the greater mission of transforming the face of the city into a
modern, buzzing commercial centre.
Over the years, the
company has completed several large real estate projects and today the name
Akruti is associated with innovative, contemporary life style oriented
commercial and residential projects at prime location in Mumbai.
Progressive
Management
The company is promoted by Mr.
Hemant Shah – the Chairman, and a Civil Engineer; and Mr. Vimal Shah, the
Managing Director and a Chartered Account.
They bring to the business an environment where merit is recognized and
achievement is well rewarded.
Core
Values
The
company promotes:
- Excellence and best practices in all
spheres of work.
- Customer centricity through innovation
in products and services.
- Commitment to honesty and transparency
in all operations.
- Social responsibility.
The
Quality Focus
The company is quality centric
and uses well designed processes to ensure adherence to the highest standards.
The company has been awarded the ISO 9001 certification. On the financial
front, the company has been awarded a real estate developer’s rating of DA2 by
CRISIL – The Credit Rating Information Service of India.
Subject is the first in the industry to receive this twin distinction. The DA2
rating reflects the professional management, strong project management capabilities,
well defined workflow processes, excellent track record of completing projects
on schedule and strong financial profile”
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.67 |
|
|
1 |
Rs.82.12 |
|
Euro |
1 |
Rs.55.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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. |
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 |
|