MIRA
INFORM REPORT
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Report Date : |
02.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
TODAYS
WRITING PRODUCTS LIMITED |
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Registered Office : |
Survey
No 251/2, Valsad Falia, Near Jain Temple, Dadra and Nagar Haveli – 396191,
India |
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Country : |
India |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
29.04.1992 |
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Com. Reg. No.: |
56-000041 |
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CIN No.: [Company
Identification No.] |
U74999DN1992PTC000041 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTT00791A |
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PAN No.: [Permanent
Account No.] |
AABCT1487E |
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Legal Form : |
Public
Limited Liability Company. Company’s shares are listed on the stock
exchanges. |
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Line of Business : |
Subject is engaged in manufacturing of pens. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD2250000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having satisfactory track.
Directors are reported as 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 : |
Survey
No 251/2, Valsad Falia, Near Jain Temple, Dadra and Nagar Haveli – 396191,
India |
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Tel. No.: |
91-260-2668538
/ 2668574 |
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Fax No.: |
91-260-2668536 |
DIRECTORS
|
Name : |
Mr. Rajesh Kumar Drolia |
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Designation : |
Director |
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Name : |
Mr. Mukesh Gupta |
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Designation : |
Director
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Name : |
Mr Parag Sanghvi |
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Designation : |
Director |
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Name : |
Mr Ronald Netto |
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Designation : |
Director |
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Name : |
Mr Rahul Gupta |
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Designation : |
Director |
KEY EXECUTIVES
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Name
: |
Mr
Navin Choudhary |
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Designation
: |
Company
Secretary |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in manufacturing of
pens. |
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Products : |
Company's product portfolio includes
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GENERAL
INFORMATION
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Customers : |
Major
Customer includes
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No. of Employees : |
About
2000 |
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Bankers : |
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Banking Relations : |
Satisfactory |
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Auditors : |
Ajay Shobha & Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
2,50,00,000 |
Equity
Shares |
Rs 10/- each |
Rs 250.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1,28,10,000 |
Equity
Shares |
Rs 10/- each |
Rs 128.100 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.12.2005 [9 months] |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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|
|
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1] Share Capital |
128.100 |
119.800 |
119.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
450.600 |
333.600 |
276.500 |
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
578.700 |
453.400 |
396.300 |
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LOAN FUNDS |
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|
|
|
1] Secured Loans |
223.500 |
236.100 |
124.700 |
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2] Unsecured Loans |
33.000 |
21.600 |
58.500 |
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TOTAL BORROWING |
256.500 |
257.700 |
183.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
835.200 |
711.100 |
579.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
254.100 |
261.100 |
280.600 |
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Capital work-in-progress |
31.300 |
27.400 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
252.300
|
222.400 |
169.100 |
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Sundry Debtors |
450.400
|
311.800 |
250.800 |
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Cash & Bank Balances |
25.300
|
24.300 |
21.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
101.000
|
33.900 |
12.200 |
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Total Current Assets |
829.000
|
592.400 |
453.500 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
232.500
|
137.800 |
146.400 |
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Provisions |
46.800
|
48.500 |
32.900 |
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Total Current Liabilities |
279.300
|
186.300 |
179.300 |
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Net Current Assets |
549.700
|
406.100 |
274.200 |
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MISCELLANEOUS EXPENSES |
0.100 |
16.500 |
24.700 |
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TOTAL |
835.200 |
711.100 |
579.500 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.12.2005 [9 months] |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
966.600 |
934.100 |
842.100 |
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Profit/(Loss)
Before Tax |
105.700 |
95.700 |
61.900 |
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Provision
for Taxation |
32.000 |
18.200 |
8.700 |
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Profit/(Loss)
After Tax |
73.700 |
77.500 |
53.200 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
31.03.2006 1st Qtr |
30.06.2006 2nd Qtr |
30.09.2006 3rd Qtr |
31.12.2006 4th Qtr |
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Sales Turnover |
414.300 |
249.600 |
433.100 |
416.800 |
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Other Income |
2.400 |
0.600 |
0.700 |
0.700 |
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Total Income |
416.700 |
250.200 |
433.800 |
417.500 |
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Total
Expenditure |
368.700 |
209.900 |
362.200 |
347.100 |
|
Operating
Profit |
48.000 |
40.300 |
71.600 |
70.400 |
|
Interest |
15.400 |
10.700 |
11.700 |
12.200 |
|
Gross Profit |
32.600 |
29.600 |
59.900 |
58.200 |
|
Depreciation |
9.200 |
6.800 |
12.700 |
12.900 |
|
Tax |
5.800 |
1.100 |
8.300 |
10.800 |
|
Reported PAT |
17.200 |
20.200 |
33.400 |
34.500 |
200603
Quarter 1 --------------- Notes Expenditure Includes (Increase)/Decrease in
Stock in Trade Rs (30.693) million Consumption of Materials Bought outs Rs
351.288 million Staff Cost Rs 7.003 million Other Expenditure Rs 41.126 million
Tax Includes Provision for Current Tax Rs 5.500 million Fringe Benefit Tax Rs
0.317 million Deferred Tax Rs 0.423 million EPS is Basic & Diluted Status
of Investor Complaints for the quarter ended March 31, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 03
Complaints disposed off during the quarter 03 Complaints unresolved at the end
of the quarter Nil 1. The above financial results were taken on record by the
Board of Directors at their meeting held on June 30, 2006. 2. Figures have been
re-grouped and re-arranged wherever necessary to facilitate comparison. 3.
Since there was a fire in the office block of the Company at its registered
office on May 18, 2006, which destroyed the Books of accounts of the Company,
hence the accounts for the quarter ended March 31, 2006 are not yet audited,
but have been subjected to a Limited Review by the auditors of the Company. 4.
The Board of Directors have decided to apply to the Registrar of Companies to
change the accounting year of the Company to December 31, 2005 because the
accounts of the Company were audited upto December 31, 2005. The Board of
Directors have decided to make a petition to the registrar of Companies,
Gujarat for extension of holding Annual General meeting, due to the reason
stated in note no. 4. 5. The audited figures of year ended December 31, 2005
are not comparable with figures of March 31 2005.
200606
Quarter 2 --------------- Notes: EPS is Bsisc & diluted. 1. The above
financial results have been taken on record by the Board of Directors at their
meeting held on 28th July 2006. 2. The accounts of the company for the quarter
ended 30th June 2006 were prepared on the basis of information gathered from
available sources since the books of accounts of the company were destroyed in
the fire on 18th may 2006. 3. Figures have been re-grouped and re-arranged
wherever necessary to faciliate comparision. 4. Operations of the company has
been adversly affected for 27 days due to fire leading to lower sales and
profitability for the quarterended 30th June 2006. The indirect overheads
relating to this period being the loss due to fire has been treated as deferred
revenue expenditure which will be amortised in 4th quarter including this
quarter. 5. There was a fire on 18th May 2006, which has destroyed a part of
building furniture & fixtures plant & machinery and inventories. The
company was adquately covered by insurance policies for the above loss of inventories
and fixed assets. The company has lodged a claim with the Insurance company and
is currently discussing with the Insurance company about crystalising the
amount of claim. In view of the above, effect of loss and claim will be given
in the accounts after final settlement with the Insurance Company. 6. Figures
for three months ended 30th June 2006 have been subject to 'Limited Review' by
the Statutory auditors as per the listing agreement. 7. The company did not
have Investor complaints pending at the beginning of the quarter did not
receive any investor complaints and did not have any complaints lying
unresolved at the end of the quarter on 30th June 2006. 8. The company operates
only in one segments : Writing Instruments & Stationery Items'
200609
Quarter 3 --------------- Notes: 1. The above financial results have been taken
on record by the Board of Directors at their meeting held on 27th October 2006.
2. The accounts of the company for the quarter ended 30th September, 2006 were
prepared on the basis of information gathered from available sources since the
books of accounts of the company were destroyed in the fire on 18th May, 2006.
3. Figures have been regrouped and rearranged wherever necessary to facilitate
comparison. 4. Fire Insurance Claim / Loss has not been crystallised till date.
In view of the above, effect of loss and claim will be given in the accounts
after final settlement with the Insurance Company. 5. Overheads of current
quarter includes 1/4th portion of amortised deferred expenditure; occurred due
to fire. 6. Overheads and Interest relating to EOU and expansion are
capitalised. 7. Figures for three months ended 30th September 2006 have been
subject to 'Limited Review' by the statutory auditors as per the listing
agreement. 8. The company did not have investor complaints pending at the
beginning of the quarter, did not receive any investor complaints and did not
have any complaints lying unresolved at the end of the quarter on 30th
September, 2006. 9. The company operates only in one segment i.e. 'Writing
Instrument & Stationery Items.'
Annual Results
|
PARTICULARS |
|
|
|
31.12.2006 [12 months] |
|
Sales Turnover |
|
|
|
1513.800 |
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Other Income |
|
|
|
4.500 |
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Total Income |
|
|
|
1518.300 |
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Total
Expenditure |
|
|
|
1288.000 |
|
Operating
Profit |
|
|
|
230.300 |
|
Interest |
|
|
|
50.000 |
|
Gross Profit |
|
|
|
180.300 |
|
Depreciation |
|
|
|
41.600 |
|
Tax |
|
|
|
26.000 |
|
Reported PAT |
|
|
|
105.300 |
KEY
RATIOS
|
PARTICULARS |
|
31.12.2005 [9 months] |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
|
0.50 |
0.52 |
0.53 |
|
Long Term
Debt-Equity Ratio |
|
0.17 |
0.22 |
0.26 |
|
Current Ratio |
|
1.78 |
1.70 |
1.52 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
3.35 |
2.59 |
2.56 |
|
Inventory |
|
5.31 |
4.74 |
5.16 |
|
Debtors |
|
3.30 |
3.30 |
3.21 |
|
Interest Cover Ratio |
|
4.16 |
3.48 |
3.24 |
|
Operating Profit
Margin(%) |
|
17.86 |
18.05 |
13.31 |
|
Profit Before
Interest And Tax Margin(%) |
|
14.73 |
14.49 |
10.91 |
|
Cash Profit
Margin(%) |
|
10.94 |
11.92 |
8.88 |
|
Adjusted Net Profit
Margin(%) |
|
7.80 |
8.36 |
6.48 |
|
Return On Capital
Employed(%) |
|
24.25 |
21.50 |
16.48 |
|
Return On Net
Worth(%) |
|
19.04 |
18.24 |
14.23 |
STOCK PRICES
|
Face
Value |
Rs.10/-
each |
|
High |
Rs.75.50 |
|
Low |
Rs.74.60 |
LOCAL AGENCY
FURTHER INFORMATION
Today Writing Products Limited(TWPL), incorporated in April 29, 1992 as
Creative Stationo Products Pvt. Limited. and promoted by Rajesh K Drolia, a
first generation Entreprenuer is one of the leading manufacturers of pens in
India. The company has changed its name to the present one in October 1995. The
company came out with its maiden public issue in April 1996.
The company markets its products under the 'Today's' brand name
both domestically and internationally. The company's product portfolio includes
Ball pens, gel pens, roller pens, markers and highliters. The company owns two
production facilities at Dadra both equiped with inhouse tool room, design and
moulding and quality control facilities.
Today's Writing Instruments Limited(TWIL), a group company was
amalgamated with TWPL effective from Oct 4, 2000 as a part of business synergy
plan.
To market its products Todays entered signed an agreement with
its joint venture partner M/s Mon Ami CompanyLimited, Korea. It is having 330
distributors spread over 145 countries.
During
the period under review, your company has witnessed an increase in turnover by
1.91 % to Rs. 944.588 Millions (previous year Rs. 926.855 Millions). However on
prorata basis the growth is 42.97% This was possible due to the continuous
effort of consolidation, infusion of new technologies, reorientation of
marketing strategies and thrust on production of low price valued pens with
higher volume production. This was a challenging process and company had to
make it with reduction in cost, use of innovative technologies and optimum use
of plant capacities. However the Net profit for the period is, Rs.71.513
Millions (previous year Rs. 77.542 Millions). However on Prorata basis the Net
profit is increased by 54.25%.
During the period under review company launched various new models in the
price segment of Rs. 5 to Rs. 7 and has achieved the no. 1 position in this
category and was thus able to penetrate the market very successfully. This low
value high volume strategy is now being followed up with several product
launches at the frequent intervals of Rs 5 price point. During the current year
the company expects to achieve a very good turnover and profit barring any unforeseen
circumstances
- One of the leading manufacturers of writing products.
- Promoted by Rajesh Drolia, an entrepreneur with a passion for pens and a renowned name in the industry globally.
- Decade long presence
- One of the most visible brands in India
- Covering over 35 varieties of pens
- Recently extended to cover school and office stationery.
- Delivering consistent profits and dividends ever since its going public in 1996
History
1995
- Commenced operations in the name of Today’s
- Became profitable in the first year of operations
1996
- Went public
- Launched the Zee Khushboowala pen
- Stocks listed on 6 bourses
1996-1997
- Turnover exceeds Rs 2500 lacs
1998-99
- Network coverage increased from 50,000 retail outlets to 300,000
- Began the campaign Jeetna hai today
2000
- Turnover exceeds Rs 5000 lacs
- Ball pens and refills production crosses 1 mn per day
2001
- Turnover exceeds Rs 7500 lacs
- Coverage extended to 400,000 outlets
2002
- Production expanded to 1.5 mn pens per day
- Entered into an agreement with Mon Ami
- Launched the Rs 5 gel pen
- Mon Ami picks up equity stake
2003
- Entered into an agreement with Poundland of UK
- Pens sold under the brand name of Today’s by Poundland in UK
2005
- Brand extended to pencils, notebooks, and other stationery products
- Preferential allotment of 8.44 lac shares to Bennett Coleman & CompanyLimited
2005
- Entered into an agreement with Style Asia, for marketing products in USA through retail stores
- Agreement entered into JL Morrison for marketing products in Sri Lanka
The endeavour of the company is to offer quality
products at value for Money prices.
EXPORT
During the period under review, Company's export is Rs.21.634 Millions
compared to Rs. 15.575 Millions last year. There is a increase in export by Rs.
6.259 Millions. Company continued its development of the exports markets and
more new export markets are explored. The company has exported to countries
like Italy, Japan, Malaysia, Phillipines, UAE, ,Sri Lanka & England.
Company's products have been very well accepted in the overseas market & in
big departmental stores in U.K.
During the year under review, the company has entered into a agreement
with a Multinational company at Sri Lanka whereby the company's products will
be marketed in Sri Lanka in a very big way and later on a joint venture will be
entered in the coming year. The company hopes to get very good export once this
collaboration comes in full swing in the coming year.
A very prospective proposal is under consideration with a very big supplier
of stationery items in Bangladesh and company hopes to enter into marketing
collaboration with the prospective buyer.
Company continuous efforts of so many years in the export market and
establishment of superior quality products standards and better logistical
capabilities are now paying reach dividends and it helps the company in getting
good regular export orders from various countries, departmental tones and this
is expected to grow very rapidly in the coming years.
EXPORT ORIENTED UNITS
The Company is going to set up a new 100% Export Oriented Unit, in the
Union Territory of Dadra & Nagar Haveli for manufacturing of Ball pens, Gel
Ink Pens, Refills, Highlighters and Markers with a capacity to produce approx.
2.000 Millions ball pens & its components per day. The said Project shall
be set up exclusively to cater to World Demand. The company has collaborated
with Mon Ami of Korea for manufacturing international grade Writing Instruments
for Local and export.
The Company has obtained all necessary licences/ permissions and placed
orders for machineries and others with the suppliers. The unit will be
functional by 3rd quarter of the coming year and able to contribute nicely to
the company's turnover and profitability.
The promoters do not envisage any difficulty in marketing the additional
expanded capacity set up in 100%.EOU of the Company. The demand of the
Stationery in global Market has started picking up and even 1% of world demand
of Writing Instruments if shifted to India would result it, India Exposure of
Rs.2500 Millions and even if the Company taps 10% of the said demand would be
sufficient to meet Company's projections.
The company will arrange the project cost by way of further issue of
shares by private placement / public offer and arrangement of debts with banks
and financial institutions.
RAISING OF FUNDS
During the period under review, company has taken steps to set up
100% Export oriented unit existing (EOU) at Dadra (UT) and also expanded
capacity and has. more plans to set up retail chain store of stationary items,
hence has taken all steps to raise funds through follow up public offer or
foreign currency convertible bonds (FCCB) but to low investors sentiments the
company has deferred both the options.
Now once again the security market is good & investor sentiments are
peaking up company think to raise funds through FCCB/ Follow on Public offer/
other means to raise funds as due to lack of funds the plans which were taken
during the period under review were slow downed: For the prosperity &
growth of the company it is decided to raise the fund & utilize in the
plans envisaged earlier.
OUTLOOK
Company is expected to achieve better performance in the current year in
local as well as global market. This year's performance boost the confidence to
the company in expanding its capacity for local as well as global market and
compete with best in this business. Looking to the favourable acceptability of
Indian writing products and stationery items in global market especially in
Eurpoean and US market the company is going to set up a export oriented unit at
Dadra which will help the company in concentrating the export market in a big
way.
Company is also expecting better prospects in the coming year and hope to
perform better both at domestic as well as export markets. Better marketing
strategies, technological up-gradation and usuance of ERP will greatly enhance
company's performance & image in the domestic as well as global
market.
CHANGE
OF ACCOUNTING YEAR
Due to fire our books of accounts were destroyed and the company could
not able to get is a accounts for the year ended 31st March, 2006 and hence
applied for change of accounting year from 31st March 2006 to 31st December
2005 with ROC, Gujarat and got their permission and accordingly on the basis of
earlier audit report for the period ended 31st December 2005, prepared for the
company follow oar propose, public issue, the auditors of the company based
their reports.
OVERVIEW
The last year has been a significant for the company. The international
scenario was becoming a lot more India friendly than it ever was. Thanks
perhaps to the IT industry's efforts, but global buyers were considering Indian
products with a greater degree of respect. The SARs outbreak in China was also
very fortuitous for Indian plastic manufacturers, including us in the writing
instruments industry.
India is definitely on its way to becoming an international hub for the
manufacture of writing instruments. More and more international buyers have
setup offices in India to source products from here. However, production
capacities remain preoccupied with the domestic demand, which continues to be
very good.
The company re-affirmed its focus on the high volume low value category
of writing instruments. The success it was achieved in the market place has
encouraged it to develop a programme to increase its production capacity by at
least double.
Innovation is the pillar on which this Company is founded and this year
has seen the company developing over 18 new product ideas and launching them
into the market. This will be done with the minimum of investment, by higher
utilization of the plant machinery through use of higher capacity moulds.
Product costs will reduce and margins will increase.
The Company's investment the previous years in restructuring and
consolidation has begun to payoff and this was reflected in the Company's much
improved profitability figures.
The environment per se has been getting better and augurs well for us.
International demand is also on the increase and the Company has formulated
growth strategies to develop this potential into profitable business.
Industry Structure And Development
The size of Indian writing instruments industry is of approximately Rs.
16000 Millions and is expected to grow at the pace of 20 % per annum. The gel
pen segment has carved the significant niche and the growth rate is almost 100
%; p.a due to increased preference by the consumers. A significant change has
been seen during last few years that the market shares of organized segment
were increased drastically on account of better quality, competitive economical
prices, better marketing of their branded products. The organized sector still
commands 30 % market share.
The Writing Instruments manufacturing industry in India is reserved for
the small-scale sector. Faced with a quantitative restriction on the
investments in plant and machinery, the industry is facing difficulties in
upgrading its machinery & technologies, which are essential for competing
with international players in global market. Recently the government has
enhanced the quantitative restriction in the investment in plant &
machinery which is a good for the industry although it is not sufficient for
the industry.
The Writing Instruments industry is not of cyclic nature and is not
affected by any environmental or external factors, which is quite evident from
the overall growth shown by the industry & the company in particular over
the past years. Further the wide ranges of products are an added advantage to
the company in competing with other players.
EXPORT
Company exported Rs. 21.834 Millions in comparison of Rs. 15.575 Millions
during the period ended 31st December 2005. A growth of 6.259 Millions is
evidenced which is possible due to the company's ability to provide competitive
products, innovative packaging as well as the ability to customize products to
the buyers requirements. The company's regularly participated in various trade
fairs & which helped it to reach prospective international customers and
also helped in knowing their taste & liking of products & the recent
developments in the writing instrument industry. Company has begged a very big
prestigious order from multinational departmental stores of Europe, which is
only possible due to better quality standard and economy followed by the
company.
Company has adopted the marketing oriented strategy towards exports.
Rather than sell at a rock bottom price, you company has instead chosen to
develop partners in various countries, and progress slow and steadily in these
markets.
PROMOTIONAL / CORPORATE SALES
Promotional/ Corporate Sales is now a days plays a big role in marketing
of products because the concept of getting anything extra alongwith the product
is becoming popular day by day with the consumers and the corporate
manufacturers are utilizing this marketing strategy. The Writing instruments is
a most suitable promotional item & hence various industries are especially
providing the same along with their products. Company's promotional department
has become a major contributor to our turnover. Various Multinational FMCG
& Pharmaceutical Companies like Hindustan Lever Limited, Philips India, Warner
Lambert, Fuji,Film, Cipla, FDC etc. are the major customers of the company
& they are regularly purchasing our plastic pens & the company is very
optimistic about this business.
Pens make the perfect advertising vehicle, especially the models with a
good printing area on the barrel or the clip. Today's Pens have also found very
good value in trade schemes with the distribution channels of these large
multinationals. The more famous marketing campaigns were with HLL's Fair and
Lovely, in which Today's Pens were part of the scheme to the trade. In the case
of Phillips, Today's Pens made for a very successful consumer offer.
With more and more corporate houses discovering the importance of using
pons to further their communication needs, the future for this department
indeed looks very bright. Growth is expected to be over 100% the following year
too.
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.44.11 |
|
UK
Pound |
1 |
Rs.86.79 |
|
Euro |
1 |
Rs.57.44 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|