MIRA
INFORM REPORT
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Report Date : |
14.08.2007 |
IDENTIFICATION DETAILS
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Name : |
SARASWATI
INDUSTRIAL SYNDICATE LIMITED |
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Registered Office : |
Saraswati Corporate Centre, Ambala, Yamunanagar – 135 001, Haryana |
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Country : |
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Financials (as on) : |
30.09.2006 |
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Date of Incorporation : |
23.01.1993 |
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Com. Reg. No.: |
05-97 |
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CIN No.: [Company
Identification No.] |
L23423HR1933PLC000097 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKS05672C |
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Legal Form : |
A Public Limited
Liability Company. The company’s
shares are listed on Stock Exchanges |
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Line of Business : |
Manufacturer and Traders
of Sugar, Ingots, Steel Casting, Pressure Vessel and Heat Exchanger, etc. |
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 8400000 |
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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 engaged in the business as manufacturers of The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Saraswati Corporate Centre, Ambala, Yamunanagar – 135 001, |
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Tel. No.: |
91-1732-251700/223108/223391/95 |
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Fax No.: |
91-1732-250991/251551 |
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E-Mail : |
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Website : |
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Corporate
Office : |
A-4, Sector-24,
Noida – 201 301, |
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Factory 1 : |
v
A-4,
Sector 24, Noida – 201301, v
Saraswati
Corporate Centre, Yamunanagar – 135 001, Haryana v
Indian
Sugar & General Engineering Corporation, Yamunanagar, Haryana v
ISGEC
v
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Branches : |
Located
at :- v
‘ v
‘ |
DIRECTORS
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Name : |
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Designation : |
Director |
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Address : |
A-4, Sector 24, Noida – 201301, |
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Name : |
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Designation : |
Director |
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Address : |
B-40, Geetanjali Enclave, |
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Name : |
Mrs. Sujata
Vardarajan |
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Designation : |
Director |
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Name : |
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Designation : |
Director |
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Address : |
15, |
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Name : |
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Designation : |
Director |
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Address : |
128 Golf Link, |
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Name : |
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Designation : |
Director |
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Name : |
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Designation : |
Joint Managing Director |
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Address : |
D-860, New Friends Colony, |
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Experience : |
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Name : |
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Designation : |
Chairman & Managing Director |
KEY EXECUTIVES
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Audit
Committee |
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Name : |
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Designation : |
Company Secretary |
SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
3578180 |
48.55 |
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FIs, Banks &
Mutual Funds |
68320 |
0.93 |
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Others (Public) |
3723040 |
50.52 |
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TOTAL |
7369540 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and
Traders of Sugar, Ingots, Steel Casting, Pressure Vessel and Heat Exchanger,
etc. |
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Products : |
It’s product
range includes :- Pressure
Vessels and Heat Exchangers v
Shell
and Tube Heat Exchangers v
Pressure
Vessels v
Boiler
Drums v
Reactors v
Columns
and Towers v
Boiler
Pressure Parts v
Galvanising
Baths on Kettles v
Fume
Hoods Presses v
Straight
Side Presses-Mechanical v
Straight
Side Presses-Hydraulic v
‘C’
Frame Presses-Mechanical Boilers v
Dump
Grate Boilers v
Travelling
Grate Boilers v
Atmospheric
Fluidised Bed Combustion Boiler (AFBC) v
Circulating
Fluidised Bed Combustion Boiler (CFBC) v
Oil/Gas
Fired Boilers v
Waste
Heats Recovery Boilers v
Deaerators
v
Spares Steel
Castings v
Hydro
Turbine Castings v
Gas
Turbine Castings v
Steam
Turbine Castings v
Valve
Castings v
Mn
Steel Castings v
Ni-Hard
Castings v
Pump
Castings v
General
Castings Sugar
Plants and Machinery v
Complete
Cane Sugar Plants v
High
Performance Cane Mills v
Process
House Equipment v
Bagasse
Fired Boilers v
Spares
Iron
Castings v
Castings
for Pump and Compressor Industry v
Castings
for Chemical and Dye Stuff Industry v
Castings
for Soda Ash Industry v
Castings
for Tool and Dies Industry v
Castings
for Machine Tools Industry v
Castings
for Steel Plant Industry v
Castings
for Sugar Industry Liquified
Gas Containers General
Fabrication v
Custom
Job Work (Heavy Engineering Equipment as per client’s Desings and Drawings) |
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Exports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
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Steel Structural,
Iron and Steel Pipes and Agricultural Implement |
MT |
506 |
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C. I. Castings |
MT |
2012 |
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Mechanical
Presses |
Nos. |
59 |
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Chlorine and Other Liquefied Gas
Containers |
Nos. |
5733 |
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Hydraulic Presses |
Nos. |
15 |
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Ingots |
MT |
12000 |
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Steel Castings |
MT |
5000 |
GENERAL INFORMATION
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No. of Employees : |
380 |
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Bankers : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S.S. Kothari Mehta & Company Chartered Accountants |
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Associates/Subsidiaries : |
Ř
Himachal
Polyolefines Limited subsidiaries
Ř
The
Saraswati Sugar Mills Limited Ř
Isgee
Covema Limited Ř
Isgee
Export Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
85,00,000 |
Equity Shares |
Rs.10/- each |
Rs.85.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
73,69,540 |
Equity Shares |
Rs.10/- each |
Rs.73.695 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
73.700 |
73.695 |
73.695 |
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2] Reserves & Surplus |
2024.800 |
1628.841 |
1485.694 |
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NETWORTH |
2098.500 |
1702.536 |
1559.389 |
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LOAN FUNDS |
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1] Secured Loans |
198.300 |
175.042 |
210.736 |
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2] Unsecured Loans |
172.600 |
193.854 |
297.621 |
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TOTAL BORROWING |
370.900 |
368.896 |
508.357 |
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TOTAL |
2469.400 |
2071.432 |
2067.746 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
876.500 |
542.991 |
336.583 |
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Capital work-in-progress |
69.300 |
67.623 |
9.713 |
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INVESTMENT |
1026.600 |
721.998 |
721.998 |
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DEFERREX TAX ASSETS |
0.000 |
5.502 |
76.962 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1690.200
|
1191.446
|
682.334 |
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Sundry Debtors |
1821.200
|
1195.136
|
888.050 |
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Cash & Bank Balances |
159.900
|
105.926
|
75.193 |
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Other Current Assets |
0.000
|
0.184
|
0.287 |
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Loans & Advances |
1302.300
|
387.152
|
383.234 |
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Total Current Assets |
4973.600
|
2879.844
|
2029.098 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
3736.400
|
1896.027
|
911.841 |
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Provisions |
740.200
|
250.499
|
194.767 |
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Total Current Liabilities |
4476.600
|
2146.526
|
1106.608 |
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Net Current Assets |
497.000
|
733.318
|
922.490 |
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TOTAL |
2469.400 |
2071.432 |
2067.746 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
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Sales Turnover |
9261.300
|
4352.500
|
3067.900
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Other Income |
135.600
|
126.500
|
164.600
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Stock Adjustments |
468.300
|
245.200
|
55.900
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Total Income |
9865.200 |
4724.200 |
3288.400 |
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Profit/(Loss) Before Tax |
674.300
|
267.100
|
97.600
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Provision for Taxation |
223.700
|
94.600
|
37.600
|
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Profit/(Loss) After Tax |
450.600
|
172.500
|
60.000
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
652.504 |
541.577 |
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Imports : |
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Total Imports |
NA |
560.054 |
310.049 |
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Expenditures : |
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Raw Materials |
6874.900
|
2974.600
|
1859.300
|
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Excise Duty |
545.600
|
321.300
|
232.600
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Power & Fuel Cost |
97.500
|
78.900
|
63.400
|
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Other Manufacturing Expenses |
494.100
|
334.800
|
295.300
|
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Employee Cost |
525.100
|
393.300
|
405.800
|
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Selling and Administration
Expenses |
367.700
|
138.700
|
134.800
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Miscellaneous Expenses |
115.700
|
77.100
|
65.800
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Interest & Financial Charges
|
73.100
|
65.800
|
74.400
|
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Depreciation |
97.200
|
72.600
|
59.400
|
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Total Expenditure |
9190.900 |
4457.100 |
3190.800 |
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KEY RATIOS
|
PARTICULARS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
|
Debt Equity Ratio |
0.19 |
0.27 |
0.31 |
|
Long Term Debt
Equity Ratio |
0.10 |
0.16 |
0.21 |
|
Current Ratio |
1.12 |
1.37 |
1.68 |
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TURNOVER RATIOS |
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Fixed Assets |
6.69 |
4.15 |
3.44 |
|
Inventory |
6.43 |
4.65 |
4.90 |
|
Debtors |
6.14 |
4.18 |
4.18 |
|
Interest Cover
Ratio |
10.22 |
5.06 |
2.31 |
|
Operating Profit
Margin (%) |
9.12 |
9.32 |
7.54 |
|
Profit Before
Interest and Tax Margin (%) |
8.07 |
7.65 |
5.61 |
|
Cash Profit
Margin (%) |
5.91 |
5.63 |
3.89 |
|
Adjusted Net
Profit Margin (%) |
4.87 |
3.96 |
1.96 |
|
Return on Capital
Employed (%) |
32.92 |
16.09 |
8.54 |
|
Return on Net Worth (%) |
23.71 |
10.58 |
3.90 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
A multi-product, multi-division and multi-location company, The
Saraswati Industrial Syndicate manufactures crystal sugar, sugar plants, ingots
and steel castings, pressure vessels and fabricates specialised items and
hydraulic presses.
The company had undertaken the expansion of the Titawi sugar factory and the
Mawana sugar factory. In 1995, the company's Indian Sugar and General
Engineering Corporation (ISGEC) was awarded the ISO 9001 certification by
Lloyds Register of Quality Assurance,
In 1993, the company's subsidiary -- ISGEC Covema Plastics, was granted a
letter of intent for setting up a 2500 tpa sugar plant at Kamoda in the
Kurukshetra district of Haryana. The company exports to the
During 1998-99, the company has signed a collaboration agreement with an
Italian Company, Belleli, for manufacture of High Pressure Reactors used in the
fertiliser and refinery industries.
Two major Press Lines were supplied to Krupp JBM Private Limited during
1999-2000, which was a major achievement for the company as these were supplied
in a record period of time. The company also supplied a high pressure and
sophisticated Reactor to the Indian Oil Corporation, the order of which was
booked by their Italian collaborator but the fabrication was done in the
company's shops.
An agreement with M/s Foster Wheeler USA for transfer of latest Circulating Fluidized
Bed Boilers technology was signed in 2000-01.The company has got exports orders
for Cupro Nickel and Chrome Ferrite Stainless Steel Heat Exchanges.
BUSINESS
FINANCIAL
RESULTS :
The company had a good year and performance improved substantially. The Profit
for the year stood at Rs. 674.300 Millions compared to Rs. 267.100 Millions in
the previous year. The Order Book stands at record level. Business continues to
be good and sales are expected to be even better.
The subsidiary company, Saraswati Sugar Mills Limited, is entering into a phase
where huge sugar surpluses are expected in the country. Sugar Prices have been
declining continuously over the last few months and the subsidiary company's
financial results are likely to be severely impacted in the coming year.
OPERATIONS
:
Total sales at Rs. 9300 Millions were more than double than those of the
previous year. Exports at Rs. 1240 Millions were also nearly double than those
of the previous year. Their equipments are now working in 69 countries compared
to 61 countries in the previous year. Besides supplies to existing customers in
North America and Europe, new customers were found in Central Asia, Central
America and
In view of increasing export potential, the company has decided to set up a new
Plant on the
Further capacity expansion was carried out in all lines of business.
The company opened offices in North America and
Notable export orders booked during the year include orders from GE China,
Siemens Germany, Petrofac UAE, Luk
Important domestic orders booked include two orders for Circulating Fluidized
Bed Combustion Boilers from Bhushan Groups, Bagasse fired Boilers from Bajaj
Hindusthan, Pressure Vessels from Reliance Petroleum and Indian Oil Corporation
Limited, Steel Castings from Alstom and Presses from Ford Motors.
The First Circulating Fluidized Bed Combustion Boiler with the latest Foster
Wheeler Technology (Compact Type) has been commissioned.
During the year the company signed a Technology License Agreement with ABB
Lummus Heat Transfer,
In the last year's Directors' Report a statement had been made regarding
listing on Bombay Stock Exchange. Directors would like to clarify that the
statement was intended to refer to the application for listing on Indonext
Segment of that Exchange and, not listing under the Permitted Category; the
later was not followed up due to introduction of the Indonext Segment.
ISGEC (Works)
(i) A number of steps were taken to progressively replace higher power
consuming equipment with energy efficient equipment.
(ii) An energy audit was got conducted by Petroleum Conservation Research
Association and their recommendations for conserving energy are under
implementation.
Uttar Pradesh Steels
(iii) A new induction furnace was installed, which is energy efficient. Power
saving of approximately 10% per ton of Liquid Metal produced has been achieved
over last year.
(d) Total energy consumption and energy consumption per unit of production.
TECHNOLOGY
ABSORPTION, ADOPTION AND INNOVATION :
The technology absorption of Circulating Fluidized Bed Combustion (CFBC) for
boilers under Technology Transfer agreement with Foster Wheeler,
During the year they signed a Technology License Agreement with ABB Lummus Heat
Transfer,
Segment
Analysis and Review :
a) Manufacturing of heavy capital goods
:
These include Pressure Vessels, Hydraulic and Mechanical Presses and Castings.
The manufacturing facilities are located at Yamunanagar (Haryana) and
Muzaffarnagar (U.P.). They have bought land in Dahej (
During the period under review, they exported pressure vessels to KNPC Kuwait,
Petrofac Sharjah, Petroleum Development Oman, Consolidated Construction Company
Efforts are being made to get their selves approved from more consultants and
end users so as to increase their exports. The new facility at Dahej will
manufacture pressure vessels heavier than what they are manufacturing at
present.
The Presses business which supplies equipment mainly to the automobile sector,
saw increased turnover because of the expansion of the Automobile Sector.
Foundry business which is now concentrated more on complex castings used in the
Power sector grew because of a worldwide growth in this sector. The Foundry
nearly doubled its output and plans are in hand for a further expansion.
b) Engineering, Procurement and
Construction Business :
In this line of business, the company engineers, procures and sets up boiler
units and sugar plants. It also undertakes to commission these plants and takes
guarantees for their performance and efficiency. This work is done out of its
office in Noida (U.P.). The boiler business mainly supplies to process
industries like Sugar, Cement, Steel, Paper etc. With the boom in economy, this
Division also saw increased sales. The business for Circulating Fluidized Bed
Combustion boilers with technology from Foster Wheeler, their technology
provider, saw a very significant increase. The sugar machinery business also
boomed mainly because of the setting up of a large number of sugar plants in
U.P.
Outlook and Threats :
The boom in the Indian Economy should lead to a high demand for capital goods.
Moreover, the company is making a concerted effort to increase exports.
Therefore, an increase in the turnover in the coming years is expected.
However, they are facing increased competition from new suppliers, Indian as
well as overseas (particularly Chinese), in all the segments mentioned above.
Consequently, margins are expected to be under pressure. Exports are also
becoming increasingly competitive and the weakening of Dollar may have an
adverse effect on their exports. In certain areas, for instance, Presses and
Boilers, keeping abreast with overseas technology is a major concern. Raw
material prices continue to be very volatile and could lead to large
fluctuations in the bottom line. Human resources continue to remain scarce and
their costs are also rising significantly.
divisions of
saraswati industrial syndicate
Ř
ISGEC
Ř
Engineering
Procurement & Construction (EPC)
Ř
Steel
Castings (Uttar Pradesh Steels)
Ř
Saraswati
Sugar Mills
isgec john thompson
Ř
More
than 400 water tube boiler installations
Ř
Wide
Experience in Cogeneration, Captive Power applications
Ř
Technology
for Fossil and Biomass Fired Boilers
- Dump Grate
- Travelling Grate
- Atmospheric Fluidised Bed
- Circulating Fluidised Bed
Ř
Oil/Gas
Fired Boilers
Ř
World
Class manufacturing facilities
Ř
ISO
9001 Certified
infrastructure
Manufacturing
Facilities
Ř
Crane
Capacity – 150 tonnes
Ř
Shop
Area 30,000 sq. mtrs ( 36000 sq. yards)
Forming
Capabilities
Ř
Rolling
Thickness – 200 mm (8 inches)
Ř
Dished
End Thickness – 125 mm (5 inches)
Drilling
Capabilities
Ř
Thickness
– 300 mm (10 inches)
Welding
Ř
Twin
Wire Submerged Arc Welding
Ř
Submerged
Arc Welding
Ř
Metal
Inert Gas Welding
Ř
Tungsten
Inert Gas Welding
Ř
Shielded
Metal Arc Welding
Testing
Ř
Radiography
upto 200 mm (8 inches) thickness
Ř
Tensile
Test including Elevated
Ř
Temperature
Testing upt 800C
Ř
Impact
Testing upto (-) 196C
Ř
Metallurgical
Microscope X-2000 and Photography facility
Ř
Ultrasonic
Testing
Ř
Magnetic
Particle Testing
Ř
Liquid
Penetrant Testing
Heat
Treatment
Ř
Four
Oil Fired Furnances
Maximum size : 4500 mm x 4000 mm x 14500 mm (15 ft. x 13ft. x 48 ft.)
Ř
Local
Stress Relieving by Electrical Resistance Method
Codes
& Standards
Ř
ASME
Section 1
Ř
ISO 831
Ř
BS 1113
Ř
Indian
Standards
Engineering
Capabilities
Ř
In-house
Engineering facilities – Mechanical, Process, Structural, Electrical, Control
and Instrumentation
Ř
49
Designers
Ř
Fully
Computerized Design Office
Ř
Latest
Design Software
Ř
Stress
Analysis for critical components by Finite Element Method
Ř
Softwares
– Autocad, Autolisp, Cadworx, Ceasar, Staad, Amigo, MS Project – latest
versions
Ř
Project
Management Capability
- Experienced Project Manager, Engineers,
Construction and Commissioning Personnel for efficient Project Management
and on time delivery
- M.S. Project based planning, scheduling
and monitoring
- Sequential supplies ensure organised
construction at site
accreditations
Ř
ISO
9001 Certified
Ř
ASME –
‘U2’, ‘U’ and ‘S’ Stamps
Ř
It is in trade
terms with :
Fossil
Fuels
Ř
Indian
Aluminium Company,
Ř
Nirma
Limited,
Ř
Indian
Charge Chrome Limited,
Ř
Atul
Products Limited,
Oil
and Gas
Ř
National
Fertilizers Limited,
Ř
Hindustan
Fertilizer Limited,
Ř
D.M.D.E.,
Ř
National
Fertilizers Limited, Vijaipur,
Ř
National
Organic and Chemicals Industrial Limited, (NOCIL),
Ř
Indian
Petrochemicals Corporation Limited,
Ř
Indian
Oil Corporation Barauni Refinery,
Bio
Mass Fuels
Ř
Ř
Orient
Paper Mills,
Ř
Kamlapur
Sugar,
Ř
Lam Son
Sugar
Ř
Ř
Varinder
Agro Chemicals Limited,
Ř
Nuchem
Limited,
Ř
Varam
Ř
Jyoti
Bio
Ř
South
Nyanza Sugar Company,
Cogeneration
Boilers
Ř
Supreme
Renewable Energy,
Ř
Gem
Sugars,
Ř
The
Mysore Sugar Company Limited,
Ř
Gayatri
Sugar
Ř
Thiru Arooran
Sugar Limited,
Ř
Cheyyar
Co-operative Sugar
Ř
Shri
Prabhulingeshwar Sugar Works Limited,
Ř
Kothari
Sugars and Chemicals Limited,
joint venture
Presses ISGEC
saraswati
industrial syndicate
The company is a Rs.
5000 millions, multi-product, public limited company, with interests in
Boilers, pressure Vessels, Heat Exchangers, Hydraulic and Mechanical Presses,
Steel and Alloys Steel Castings, Sugar Plant Machinery, Turnkey Project
Services for Sugar and Industrial Boilers as well as production of sugar.
Established way
back in 1933, the company started off by setting up the Saraswati Sugar Mulls
at Yamunanagar in
The sugar plants
and machinery division of the company was playing a vital role in the
development of the sugar industry and is today, one of the major players in the
world, having set up a number of complete sugar plants, internationally.
The engineering
business of the company was by 1946, large enough to be spun off as a separate
unit- ISGEC.
The fast developing
market soon threw up opportunities that saw the company get into the
manufacture and supply of Heavy Engineering products like Pressure Vessels and
Heat Exchangers.
A spate of
collaborations and technical tie-ups with world leaders like, A. F. Craig and
Company,
1964 saw the
emergence of
In 1981 the company
took over Uttar Pradesh Steels, an Alloy Steel foundry based at Muzaffarnagar,
in
With products
exported to as many as 41 countries, around the world, all product divisions of
the company are today well established internationally.
FIXED ASSETS
v
Land
(Free and Lese)
v
Building
and Road
v
Plant
and Machinery
v
Furniture
and Fixture
v
Vehicles
v
Railway
Siding
v
Tramway
Lines
v
Office
Equipment
v
Live
Stock
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 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.40.69 |
|
|
1 |
Rs.81.87 |
|
Euro |
1 |
Rs.55.42 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
|
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 |
|