MIRA
INFORM REPORT
|
Report Date : |
20.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
STAR WIRE [ |
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Registered Office : |
35, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.07.1963 |
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Com. Reg. No.: |
55-117600 |
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CIN No.: [Company Identification No.] |
U27109DL1963PLC117600 / U99999WB1963PLC025852 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CALT00276D |
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PAN No.: [Permanent Account No.] |
AAECS1124Q |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturing of all kind of ferrous and non-ferrous metals
alloys. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly
Large |
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Maximum Credit Limit : |
2500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having
satisfactory track. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered Office /
Head Office : |
35, |
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Tel. No.: |
91-11-29832650 – 54 |
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Fax No.: |
91-11-29832542 |
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E-Mail : |
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Area
: |
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Factory : |
21/4, |
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Tel. No.: |
91-129-2242263, 2241263 / 64, 2240762 / 63, 2246762 / 63,
2248262, 2300462, 2213365, 2246463 / 5062143 to 46, 5061751 to 53 |
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Fax No.: |
91-129-2241265 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Sitaram Gupta |
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Designation : |
Director |
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Address : |
A-11, Nizamuddin West, |
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Date of Birth/Age : |
15.11.1931 |
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Date of Appointment : |
16.07.1990 |
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Name : |
Mr. Mohindar Kumar Gupta |
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Designation : |
Director |
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Address : |
A-11, Nizamuddin West, |
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Date of Birth/Age : |
01.12.1958 |
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Date of Appointment : |
16.03.1981 |
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Name : |
Ms. Rekha Gupta |
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Designation : |
Director |
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Address : |
A-11, Nizamuddin West, |
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Date of Birth/Age : |
23.10.1963 |
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Date of Appointment : |
10.11.1993 |
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Name : |
Ms. Vijaya Kumari Gupta |
|
Designation : |
Director |
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Address : |
A-11, Nizamuddin West, |
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Date of Birth/Age : |
15.09.1935 |
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Date of Appointment : |
18.09.1991 |
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Name : |
Ms. Sapna Singal |
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Designation : |
Director |
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Address : |
2 J and K Extension, Laxmi Nagar, |
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Date of Birth/Age : |
09.07.1979 |
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Date of Appointment : |
19.12.2001 |
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Name : |
Mr. Surender Kumar Gupta |
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Designation : |
Additional Director |
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Address : |
A-11, Nizamuddin West, |
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Date of Birth/Age : |
21.01.1957 |
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Date of Appointment : |
29.03.2007 |
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Name : |
Mr. Samir Gupta |
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Designation : |
Director |
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Address : |
A-11, Nizamuddin West, |
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Date of Birth/Age : |
01.10.1983 |
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Date of Appointment : |
01.04.2006 |
KEY EXECUTIVES
|
Engine
Valve Steels Department : |
Mr. Gurdeep Singh (Department
Head) |
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Steel
Castings Department : |
Mr V.K. Gupta
(Department Head) |
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Defence
and Armor Department : |
Mr. Y. Bahl (Department
Head) |
|
Special
Steel Department : |
Mr. V.K. Gupta (Department
Head) |
|
Forging
Qulaity Ingot & Tool & Die Steel Department : |
Mr P.N. Singh
(Department Head) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No.
of Shares |
|
Supreme Commercial Enterprises Limited |
|
23375 |
|
Juhi Leasing and Finance Limited |
|
21700 |
|
Surrendra and Mohindra Brothers Private Limited |
|
37500 |
|
Sarswati Charitable Trust |
|
27000 |
|
Sita Ram Mohinder Kumar HUF |
|
16000 |
|
Sita Ram Surender Kumar HUF |
|
16000 |
|
Shree Radha Krishna Charitable Trust |
|
46500 |
|
Brijeshwari Dharmarth Sansthan |
|
28500 |
|
Mahawar Charitable Trust |
|
43600 |
|
Mahawar Dharmarth Sansthan |
|
28500 |
|
Surrendra Ispat Private Limited |
|
50000 |
|
Mahawar Associates Private Limited |
|
53950 |
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|
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Equity Share
Breakup |
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|
|
Category |
|
Percentage
of Holding |
|
Bodies corporate |
|
32.72 |
|
Directors or relatives of directors |
|
67.28 |
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of all kind of ferrous and non-ferrous
metals alloys. |
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Imports : |
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Countries
: |
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Terms : |
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Selling
: |
Against Contract, L/C, D/P or Credit (30 days) terms |
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Purchasing
: |
L/C, D/P or Credit (30 days) terms |
GENERAL INFORMATION
|
Customers : |
Overseas
Customers Ata
Muhammad Enterprises, Shekat
Taulidi Yadaki Motors, Paradowsey
AMP S.J., Edival
S. A., Supar
Supap Ve Parca Sanayi Ticaret A.S., Federal
Mogul Valves (Pty) Limited, Supsan
Motor, Turka Enpar
Limited, Valve
Steel Customers Rane Engine Valves Limited,
Chennai & Medchal Kar Mobile Limited, Bangalore & Tumkur Shriram Pistons & Rings Limited, Kirloskar Oil Engines Limited, Nashik Duro Valves Vikram Valves & General Industries, Automotive Valves, Kad TRW Special
Steel Customers Motor
Industries Company Limited, Bangalore & Jaipur Shriram
Fuel Injection Industries, Hyderbad Atlas
Copco India Limited, Pune High
Spped Steel Customers Miranda
Tools, Ankleshwar Forbes
Gohak Limited, Mumbai I.T.M.
(Zenith Limited) Mumbai Forging
Quality Ingot Customers Bay
Forge Limited Bharat
Forge Limited Rajkumar
Forge Limited Choudhary
Hammer Echjay
Forging Pushpaman
Forgings Achme
Forgings Forged
Products Customers Manugraph
India Limited The
Printer House Limited Triveni
Engg, Flender Eleon |
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No. of Employees : |
180 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name
: |
P D Mittal & Company Chartered Accountants |
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Address
: |
70, Daryaganj, |
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|
|
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Associates/Subsidiaries : |
v
Surendra Steel Poting Mills v
Ellora Steel Limited v
Mohinder Udyog Private Limited v
Eagle Investments Limited v
Supreme Commercial Enterprises
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 140.000 Millions |
|
6,000,000 |
Preference Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
|
|
Total
|
|
Rs.
200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9,799,750 |
Equity Shares |
Rs. 10/- each |
Rs.
97.998 Millions |
|
2,540,500 |
Preference Shares |
Rs. 10/- each |
Rs.
25.405 Millions |
|
|
Total
|
|
Rs. 123.403
Millions |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
123.403 |
110.000 |
49.850 |
|
|
2] Share Application Money |
0.000 |
50.000 |
0.000 |
|
|
3] Reserves & Surplus |
519.144 |
298.466 |
278.452 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
642.547 |
458.466 |
328.302 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
333.470 |
336.327 |
180.454 |
|
|
2] Unsecured Loans |
18.127 |
143.528 |
140.222 |
|
|
TOTAL
BORROWING |
351.597 |
479.855 |
320.676 |
|
|
DEFERRED TAX LIABILITIES |
9.333 |
6.646 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
1003.477 |
944.967 |
648.978 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
330.108 |
287.411 |
210.789 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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|
|
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INVESTMENT |
0.185 |
0.185 |
0.185 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
354.639
|
385.724 |
263.474 |
|
|
Sundry Debtors |
390.811
|
321.949 |
220.976 |
|
|
Cash & Bank Balances |
55.652
|
53.059 |
30.553 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
67.011
|
64.278 |
55.227 |
|
Total Current Assets |
868.113
|
825.010 |
570.230 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
195.397
|
167.847 |
132.226 |
|
|
Provisions |
|
|
|
|
Total Current Liabilities |
195.397
|
167.847 |
132.226 |
|
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Net Current Assets |
672.716
|
657.163 |
438.004 |
|
|
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|
MISCELLANEOUS EXPENSES |
0.468 |
0.208 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
1003.477 |
944.967 |
648.978 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
1948.370 |
1675.419 |
1392.605 |
|
|
Other Income |
25.268 |
21.394 |
|
|
|
Total Income |
1973.638 |
1696.813 |
1392.605 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1929.300 |
1665.974 |
24.184 |
|
|
Provision for Taxation |
44.338 |
30.838 |
4.350 |
|
|
Profit/(Loss) After Tax |
1884.962 |
1635.136 |
19.834 |
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
0.000 |
0.000 |
1153.341 |
|
|
Direct Overhead |
0.000 |
0.000 |
65.284 |
|
|
Administrative Expenses |
0.000 |
0.000 |
45.132 |
|
|
Raw Material Consumed |
1219.263 |
1003.447 |
0.000 |
|
|
Consumption of stores and spares
parts |
196.810 |
200.140 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
42.090 |
32.742 |
0.000 |
|
|
Managerial Remuneration |
0.380 |
0.120 |
0.000 |
|
|
Payment to Auditors |
0.293 |
0.082 |
0.000 |
|
|
Interest |
23.626 |
17.309 |
17.491 |
|
|
Insurance Expenses |
2.698 |
1.995 |
0.000 |
|
|
Power & Fuel |
161.543 |
139.751 |
0.000 |
|
|
Depreciation & Amortization |
31.103 |
20.426 |
17.197 |
|
|
Other Expenditure |
251.494 |
249.962 |
69.526 |
|
Total Expenditure |
1929.300 |
1665.974 |
1367.971 |
|
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
95.51
|
96.37 |
1.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
99.02
|
99.44 |
3.03 |
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|
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|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
161.01
|
149.76 |
3.10 |
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|
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|
|
Return on Investment (ROI) (PBT/Networth) |
|
3.00
|
3.63 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.85
|
1.41 |
1.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current
Liability) |
|
4.44
|
4.92 |
4.31 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was incorporated on 4th July, 1963 at
Kolkata in
The Registered Office of the company has been shifted from A
– 11, Nizamuddin West,
FUTURE
OUTLOOK
The Company's major thrust in the current financial year is to increase
production meant for export of Engine Valve Steel and Castings for which some orders
are in hand, The Company is also looking to add another two new import
substitute items in the kitty to maintain present turnover of indigenous
sales.
FIXED ASSETS
- Furniture and Fixture
- Vehicles
- Cycle
- Truck and Tanker
- Plant and Machinery
- Electric Installation
- Office Equipments
- Computer
- Railway Siding
- Rolling Mill Rolls
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U27109DL1963PLC117600 |
|
Name of the
company |
STAR WIRE [ |
|
Address of the
registered office or of the principal place of business in |
A – 11, Nizamuddin West, |
|
This form is for |
Modification of charge |
|
Type of charge |
|
|
Particular of
charge holder |
State Bank of SIB Branch, |
|
Amount secured by
the charge |
Rs. 5.650
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Interest will be charged
at which rate as may be determined by the bank from time to time. Extent and
operation of the charge being full. |
|
Description of
the property charged indicating whether it is a charged on |
|
|
Particulars of
the property charged |
Equitable
mortgage of factory land and building situated at Plot No. 21/4, Delhi
Mathura Road, Ballabgarh measuring 107 Kanals, 4 Biswanis [54361 sq. mtrs.] |
|
Charge identification
number of the charge to be modified |
80007937 |
|
Brief description
of the instrument modifying the charge under section 135 |
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Date of
instrument Modifying the charge |
05.07.2006 |
|
Particulars of
the present modification |
Present limit
enhanced to Rs. 8.154 Millions |
AS PER WEBSITE
Subject is
engaged in the manufacturing of Alloy Steels, Stainless Steel and Special
Steels for diversified engineering application in shape of castings, forging
and rolled products. Plant is fully equipped with modern equipments and testing
facilities which have created confidence and ability for manufacturing various
sophisticated grades of steel conforming to international and National
standards.
It has its own research and development centre to facilitate the manufacturing
activities and also catering to engineering and manufacturing industries for
failure analysis and other analytical activities.
The plant is situated in Ballabgarh, about 37 KMs from
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.41.06 |
|
|
1 |
Rs.81.41 |
|
Euro |
1 |
Rs.55.34 |
SCORE & RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated from
a composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for
credit transaction. It has above average (strong) capability for payment of
interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly
Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|