MIRA INFORM REPORT
|
Report
Date : |
01.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
VIDEOCON
NARMADA GLASS – DIVISION OF VIDEOCON INDUSTRIES LIMITED |
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Registered
Office : |
14 KM Stone, Aurangabad – Paithan
Road, Village Chittegaon, Taluka Paithan, District Aurangabad – 431105,
Maharashtra |
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Country: |
India |
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Financials
(as on): |
30.09.2005 |
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Date
of Incorporation : |
29.10.1996 |
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Com.
Reg. No.: |
11-103624 |
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CIN No.: [Company Identification No.] |
L99999MH1996PTC103624 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
MUMV09411D NSKV01616G |
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PAN
No.: (Permanent
Account No.) |
AABCV4012H |
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Legal
Form : |
A Public Limited Liability Company. The company’s shares
are listed on the stock exchange. |
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Line
of Business : |
Manufacturing and
trading activity of Electronic\Electric Consumer Durables and home appliances
all kinds of electric and Electronic goods as well as telecommunication
equipments, office equipments, games and gaming solutions including lotteries
etc., |
RATING & COMMENTS
|
MIRA’s
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
185000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Usually
correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is an established company having satisfactory track. Company’s profitability is
improving. The company was successful in wiping-off all its previous losses .
Payments are reported as slow but correct. The company can be considered for business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered
Office/Factory : |
Auto Cars Compound, Adalat Road, Aurangabad – 431005, Maharashtra |
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Tel.
No.: |
91-240-2320750 |
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Fax
No.: |
91-240-2333704 |
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Plant Locations : |
v 14 Km Stone,
Aurangabad-Paithan Road, Village Chitegaon, Tq- Paithan, Dist:
Aurangabad-431105 Tel. No. 91-2642-240803 Fax. No. 91-2642-240391 v 15 Km Stone,
Aurangabad-Paithan Road, Village Chitegaon, Tq- Paithan v Gut No 350, Bhalgaon,
Dist: Aurangabad – 431210 v Survey No-6 To 11,
Krishna Sagar Village, Attibele, Hosur Road v Plot No-72 (Phase -1),
Sipcot Industrial Complex, Hosur – 635126 v Sector –V, Block
B.P, Salt Lake City, Kolkata – 700
091 v Hardwar Park, Survey
No-1/1, Village Imarat Kancha, Maheshwaram Mandal, Dist. Ranga Reddy – 500
005 v P.O Box No-68,
Videocon House, Village Chhavaj, Bharuch – 392002 |
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|
|
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Branches
: |
Videocon International
Limited Tel. No. : 86-755-25833-845 Upto 850 Tel. No. :
(48 22) 7571112 |
DIRECTORS
|
Name : |
Mr. Pradeepkumar N Dhoot |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Anirudha V Dhoot |
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Designation
: |
Director |
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|
|
|
Name : |
Mr. S K Shelgikar |
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Designation
: |
Director |
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|
|
|
Name : |
Mr. Vivek D Dham |
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Designation
: |
Director |
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|
|
|
Name : |
Mr. Parag A Inamdar |
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Designation
: |
Company Sectary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters
Holding |
|
|
|
Indian
Promoters |
15,64,99,971 |
70.82 % |
|
Person
Acting in Concert # |
11,93,354 |
0.54 % |
|
Sub-Total |
15,76,93,325 |
71.36 % |
|
Non-Promoter's
Holding |
|
|
|
Institutional
Investors |
|
|
|
Mutual
Funds and UTI |
4,12,967 |
0.19 % |
|
Banks
,Financial Institutions, Insurance, Companies,
(central / State Government Institutions, Non -Government
Institutions ) |
10,07,451 |
0.46 % |
|
FIIs |
30,34,820 |
1.37 % |
|
Sub – Total |
44,55,238 |
2.02 % |
|
Others |
|
|
|
Private
Corporate Bodies |
56,07,674 |
2.54 % |
|
Indian
Public |
64,12,031 |
2.90 % |
|
NRIs/OCBs |
9,28,363 |
0.42 % |
|
GDR |
4,58,89,202 |
20.77 % |
|
Sub -Total |
5,88,37,270 |
26.62 % |
|
|
|
|
|
Grand Total |
22,09,85,833 |
100.000 % |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and
trading activity of Electronic\Electric Consumer Durables and home appliances
all kinds of electric and Electronic goods as well as telecommunication
equipments, office equipments, games and gaming solutions including lotteries
etc., |
GENERAL INFORMATION
|
Bankers
: |
v State Bank of India v Indian Bank |
|
|
|
|
Facilities : |
- |
|
Banking Relations : |
Unknown |
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|
|
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Auditors
: |
Khandelwal Jain & Company/ Kadam & Company Chartered Accountant |
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|
|
|
Associates/Subsidiaries
: |
v
Videocon
Appliances Limited Manufacturing washing machines. v
Applicomp
India Limited v
Epitome
Components Limited v
Videocon
Housing Finance Limited v
Videocon
Properties Limited v
Mecne
Spa, Italy v
European
Refrigeration Components SRL v
Videocon Industries Limited v
Videocon
Communications Limited v
Indian
Refrigerator Company Limited v
Kitchen
Appliances India Limited v
Millennium
Appliances India Limited v
Videocon
Narmada Glass |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
350000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 3500.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
262210000 |
Equity Shares |
Rs. 10/- Each |
Rs. 2622.100 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.09.2005 (15 months ) |
30.06.2004 |
30.06.2003 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
2622.100 |
328.900 |
328.900 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
43724.100 |
0.000 |
0.000 |
|
|
4]
(Accumulated Losses) |
0.000 |
(412.200) |
(394.800) |
|
NETWORTH
|
46346.200 |
(83.300) |
(65.900) |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
27761.000 |
0.000 |
0.000 |
|
|
2]
Unsecured Loans |
4734.700 |
900.700 |
999.600 |
|
TOTAL
BORROWING
|
32495.700 |
900.700 |
999.600 |
|
|
DEFERRED
TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
TOTAL
|
78841.900 |
817.400 |
933.700 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
33497.500 |
1099.300 |
1099.700 |
|
Capital work-in-progress
|
6153.700 |
0.000 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
3387.900 |
82.900 |
88.400 |
|
DEFERREX TAX ASSETS
|
|
|
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
8730.200
|
0.000
|
0.000 |
|
|
Sundry Debtors
|
9971.200
|
6.800
|
0.000 |
|
|
Cash & Bank Balances
|
13960.100
|
2.800
|
1.600 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
12091.300
|
1049.600
|
1701.300 |
Total Current Assets
|
44752.800
|
1059.200
|
1702.900 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
8253.100
|
1423.800
|
1957.300 |
|
|
Provisions
|
696.900
|
0.200
|
0.000 |
Total Current Liabilities
|
8950.000
|
1424.000
|
1957.300 |
|
Net
Current Assets
|
35775.800
|
(364.800)
|
(254.400) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
78841.900 |
817.400 |
933.700 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
30.09.2005 |
30.06.2004 |
30.06.2003 |
Sales Turnover [including other income]
|
57706.500 |
207.800 |
584.100 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
2616.500 |
(18.900) |
(143.000) |
Provision for Taxation
|
(1660.300) |
(1.500) |
70.900 |
Profit/(Loss) After Tax
|
4276.800 |
(17.400) |
(213.900) |
|
|
|
|
|
Total Expenditure
|
55466.800 |
167.800 |
305.600 |
SUMMERIZED
RESULTS
|
PARTICULARS |
|
|
30.09.2006 Full Year |
|
Sales Turnover |
|
|
76097.700 |
|
Other Income |
|
|
1445.500 |
|
Total Income |
|
|
77543.200 |
|
Total Expenditure |
|
|
62166.400 |
|
Operating Profit |
|
|
15376.800 |
|
Interest |
|
|
2447.300 |
|
Gross Profit |
|
|
12929.500 |
|
Depreciation |
|
|
3077.500 |
|
Tax |
|
|
1100.900 |
|
Reported PAT |
|
|
8751.100 |
|
Dividend |
|
|
0.000 |
KEY
RATIOS
|
PARTICULARS |
30.09.2005 (15 months) |
30.06.2004 |
30.06.2003 |
|
Debt-Equity Ratio |
0.91 |
0.00
|
0.00 |
|
Long Term Debt-Equity Ratio |
0.88 |
0.00
|
0.00 |
|
Current Ratio |
3.80 |
0.79
|
1.04 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.88 |
0.18
|
0.51 |
|
Inventory |
10.36 |
0.00
|
432.67 |
|
Debtors |
9.07 |
61.12
|
13.26 |
|
Interest Cover Ratio |
2.84 |
0.75
|
0.67 |
|
Operating Profit Margin(%) |
16.40 |
38.50
|
52.82 |
|
Profit Before Interest And Tax Margin(%) |
12.29 |
27.48
|
49.58 |
|
Cash Profit Margin(%) |
14.73 |
2.65
|
(33.38) |
|
Adjusted Net Profit Margin(%) |
10.62 |
(83.700)
|
(36.62) |
|
Return On Capital Employed(%) |
15.85 |
0.00
|
0.00 |
|
Return On Net Worth(%) |
26.45 |
0.00
|
0.00 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.455.00/- |
|
Low |
Rs.438.25/- |
LOCAL AGENCY FURTHER INFORMATION
Formerly known as
Adhigam Trading, Videocon Leasing and Industrial Finance was incorporated in
1986. In 1990-91, the management underwent a change by way of transfer of
equity shares to the Videocon group. The company is been engaged in lease
financing, hire-purchase, bill discounting and merchant banking. It had
diversified into corporate financing and investment operations. It became a
category-I merchant banker and played an active role in issue management,
underwriting, advisory services and loan syndication.
During 1994-95, it floated a 100% subsidiary Popup Properties and Investments,
to deal with investments, and to advise on investments, and also to provide
corporate finance advisory services as well as arrange and deal in the areas of
corporate finance.
Videocon Energy Holdings Limited (VEHL) and consequently Goa Energy Private
Limited (Formerly Talchar Minings Private Limited), which is a subsidiary of
VEHL, ceased to be the subsidiaries of the company with effect from 31st
March 2004. On 15th June 2004, Videocon Securities Limited has become a
subsidiary of the company and On 5th June 2004 Petrocon India Limited (PIL) has
become a subsidiary of the company. Further Popup Properties & Investments
Private Limited and Videocon (Mauritius) Infrastructure Ventures Limited are
also the subsidiaries of the company.
During December 2005 the Company has acquired 81% equity stake in Eagle
Corporation Limited (ECL) and consequently ECL became a subsidiary of the
company.
Banganga Investments Private Limited, New Design Finance & Investments
Private Limited, Wide Range Credit & Investments Private Limited and Verka
Investments Private Limited, were merged with the company under the scheme of
amalgamation.
The name of the company has been changed during September 2004, from Videocon
Leasing and Industrial Finance Limited to Videocon Industries Limited.
During 2003-04 the company had successfully launched the business of
Manufacturing and trading activity of Electronic\Electric Consumer Durables and
home appliances all kinds of electric and Electronic goods as well as
telecommunication equipments, office equipments, games and gaming solutions
including lotteries etc., and the company has also started the online lottery
business as distributors and commerical launched the business in April 2004.
Further the company has decided to merge Petrcon India Limited (Formerly
Videocon Petroleum Limited), which is subject to approval.
OPERATIONS:
During the year, name of the Company was changed from Videocon Leasing &
Industrial Finance Limited to Videocon Industries Limited. The Company also
changed its main objects in line with the proposed business strategy.
During the year under consideration, the company started the online lottery
business as distributors.
After the initial preparations like networking etc., the commercial launch of
the business was done in the month of April'04. However, being in the initial
stage, the volume of activities remained low.
FINANCIAL RESULTS
The financial period under review of the Company was extended by a period of
three months so as to end on September 30, 2005, with requisite approval from
Registrar of Companies. The performance of the Company for the financial period
ended September 30, 2005 is as summarized below:
HIGHLIGHTS
Some of the highlights of the period under review are as under:
1. Mergers:
* Petrocon India Limited amalgamated with the Company on June 7, 2005 (w.e.f.
31.03.2004). This resulted in the Company getting into oil and gas business.
With merger of Petrocon, the Company has become a member of the consortium that
operates the Ravva Oil and Gas fields.
The Company has a 25% participating interest in the Ravva Oil and Gas Field
that presently produces 50,000 barrels of oil per day. The operating cost of
the project is among the lowest in the industry.
Apart from Ravva, company plans forays outside India and is on the lookout for
strategic tie-ups in Exploration & Prospecting (E & P) on a purely
opportunistic basis.
* Videocon International Limited (VIL) amalgamated with the Company on December
7, 2005 (w.e.f. 31.12.2004). VIL was engaged in manufacture and marketing of
various consumer durables and home appliances as also Glass Shells for Colour
Picture Tubes.
* On August 13, 2005, Board of Directors of the Company approved a proposal for
amalgamation of EKL Appliances Limited (Formerly Electrolux Kelvinator Limited)
with the Company. EKL owns three manufacturing facilities in India -
Shahajanpur in Rajasthan, Butibori and Warora in Maharashtra. The details of
the amalgamation are being worked out.
2. Change in Capital Structure:
During the period under
review, there were material changes in the capital structure of company on
account of amalgamations as well as further issues of capital. Details of the
same are as under:
* On June 29, 2005, the
GDRs got listed on Luxembourg Stock Exchange upon issue of 75,00,000 GDRs
representing 75,00,000 equity shares at a price of US$ 10 per GDR.
* On July 7, 2005, AB Electrolux, Sweden, subscribed to 94,10,145 GDRs
representing 94,10,145 underlying equity shares at a price of US$10 per GDR.
* On September 13, 2005, the Company issued 23,25,500 equity shares to M/s.
Bennett, Coleman & Co., Limited, Mumbai, the publishers of The Economic
Times and The Times of India, among other publications, on a preferential basis
as per the SEBI guidelines for preferential issues.
* On September 13, 2005, the Company allotted 12,57,55,450 equity shares to the
shareholders of erstwhile Petrocon India Limited pursuant to Scheme of
Amalgamation of Petrocon India Limited with the Company.
* On September 30, 2005, Thomson subscribed for 28,650,000 GDRs representing
28,650,000 underlying equity shares at a price of US$ 10 per GDR.
As a result of this, the paid up equity capital of the Company stood at Rs
2065.26 Million as on 30.09.2005.
OUTLOOK
* The consumer electronics sector is undergoing a major transformation. The
analog technologies are giving way to digital technologies. Digitalization in
turn is leading to convergence of consumer, computer, communication, broadcast
cable technologies and the contents. A digital signal can be far more easily
processed than an analog one. The company is planning to tap this.
* The Company has adopted the best and the most sophisticated technology to
suit Indian needs. The company as a part of global diversification has been
planning international forays in advanced and alternate technologies like Flat
Panel Displays.
* The Company as a part of reducing manufacturing cost of products as also to
strengthen the bottomline, has decided to adopt the policy of becoming
'backbone provider' to the industry through focusing on various
components.
RISKS AND CONCERNS
* The markets for consumer electronics products and household appliances are
highly competitive and the Company has experienced pressure on its prices and
margins. The Company expects that technological advances and aggressive pricing
strategies by competitors will intensify competition.
* The consumer electronics products industry is subject to technological
changes and shifts in consumer preferences. A substantial portion of company's
business depends on the sales of consumer electronics products. As new features
and applications of electronics products are frequently introduced and can be
significantly different from the ones they supersede, there is a risk that the
company will not be equipped as rapidly with the technologies and/or licenses
required for developing and manufacturing electronics products that meet new
standards.
* The pricing of oil and gas is subject to variation and depends on a number of
factors beyond control
Discussion On Financial
Performance With Respect To Operational Performance
The Financial performance for the current period is not comparable with the
performance for the corresponding period in the preceding year as there has
been substantial change in the business model of the company due to
amalgamations of Petrocon India Limited and Videocon International Limited. Due
to the mergers, there has been substantial increase in the volume of activities
of the company as also there has been diversification of activities on a large
scale.
Being incomparable, the previous year performance has not been discussed under
this head. The salient features of the performance of the company during the
current period under consideration are as under :
Sales & Income from Operations
During the period under consideration, the Company achieved a turnover of Rs.
56,538.25 million, which comprised of that from the Consumer Durables and
Household Appliances Segment to the extent of Rs. 41,002.30 million, Oil and
Gas segment to the extent of Rs.1,4316.52 million and from Other segment to the
extent of Rs. 1,219.43 million.
Other Income
Other Income for the period was Rs. 841.92 million. Other Income comprises of
rental receipts, dividend income, fluctuation of foreign exchange rate,
insurance claim received, interest income and miscellaneous income.
Corporate Profile
The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing
to set trends in every sphere of its activities from a conference room sized
assembly line in 1979.
Today
the group operates through 4 key sectors:
v
Consumer Durables
v
Thomson CPT
v
CRT Glass
v
Oil & Gas
Consumer Electronics, Home Appliances
& Compressor manufacturing in India
They enjoy a pre-eminent position in terms of sales and customer satisfaction
in many of their consumer products like Colour Televisions, Washing Machines,
Air Conditioners, Refrigerators, Microwave ovens and many other home
appliances, selling them through a Multi-Brand strategy with the largest sales
and service network in India. Refrigerator manufacturing is further supported
by their inhouse compressor manufacturing technology in Bangalore.
Display industry and its components
With the Thomson acquisition Videocon has emerged as one of the largest Colour
Picture tube manufacturers in the world operating in Mexico, Italy, Poland and
China, continuing to lead through new innovative technologies like slim CPT,
extra slim CPT and High Definition 16:9 format CPT.
Colour Picture Tube Glass
Videocon is one of the largest CPT Glass manufacturers in the world with a high
level of experience and technical expertise operating through Poland and India.
Videocon will leverage on this synergy after the Thomson acquisition to
internally source glass for its CPT manufacturing increasing efficiencies and
lowering costs.
Oil and Gas
An important asset for the group is its Ravva oil field with one of the lowest
operating costs in the world producing 50,000 barrels of oil per day. The group
has ambitious plans for expansion in this sector globally.
Videocon’s Lifestyle Expo set to make a Big Splash
Videocon, India’s leading Consumer Electronics & Home
Appliances brand, has launched a nation-wide series of roadshows, called
Videocon Lifestyle Expo 05. Organized to showcase Videocon’s product range
superiority and to bring the Videocon experience close to the consumers’ homes,
the Lifestyle Expo promises to create a sensation as it showcases in different
parts of the country over the next few months.
The Videocon Lifestyle Expo will run for 3 days and along
with the product showcase, there is a shopping festival organised, where
consumers can purchase Videocon products at attractive prices, with 0% finance
options also being available. Lucky Draws and entertainment for ladies &
kids are also part of the event.
Also launched at this time is Videocon’s mega consumer
offer, the Hum-Tum Offer. A celebration of the spirit of togetherness, the
Hum-Tum Offer gives the consumers many exciting product combinations to choose
from, across the product categories of Colour TVs, Refrigerators, Washing
Machines, DVD Players & Home Theatres. The combination offer is unique in
that it allows the consumer to choose from among 15 combinations according to
his needs, at extremely attractive prices.
The product combinations in Hum-Tum have been created with
special care. “Videocon is known for always keeping the customer’s best
interests in mind, and this time is no different. Hum-Tum combinations are
tailored to suit every need, at prices that are irresistible”, said Mr. Sunil
Tandon, Vice-President, Marketing, Videocon.
This is reconfirmed by Mr. Pawan Kalra, VP, HA Sales, who
says, “The combination prices are truly amazing. For example, where else can
one avail of a combination of a fully-automatic washing machine and a 250-litre
frost-free refrigerator for just Rs. 18990? Other combination prices are equally
challenging, both in electronics and appliances.” With combinations of TVs with
DVD players, TV with refrigerator, washing machines with refrigerator, TVs with
different mobile phones, and many others, the list seems endless.
Scheduled
to travel all over the country, including Maharashtra, Gujarat, Uttar Pradesh,
Punjab, Madhya Pradesh & Tamil Nadu, the Videocon Lifestyle Expo promises
to give the customers a truly unique experience.
This is the first time that the company has launched a
countrywide series of exhibitions on such a grand scale. According to Mr. Sunil
Mehta, VP, CE Sales, Videocon, the Lifestyle Expo is basically a fun-fair for
the whole family – “One can come and have a look at the latest technologies on
offer, experience the Videocon products hands-on, and be entertained in a
variety of other ways. They have special Plasma TV and Home Theatre displays
& demonstrations, which will enable you to truly feel the movie theatre
experience; and with the exciting Hum-Tum combinations also on offer at the
Expo, it is the opportunity of a lifetime, as well as an unforgettable experience”,
he said.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.17 |
|
UK Pound |
1 |
Rs.86.66 |
|
Euro |
1 |
Rs.57.25 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE
|
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
STATUS
|
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |