MIRA
INFORM REPORT
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Report Date : |
05.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
VISAKA
INDUSTRIES LIMITED |
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Registered Office : |
Survey No. 315 IDA
Yelumala Village, R C Puram Mandal, Medak Dist. – 502300, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
June,
1981 |
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Com. Reg. No.: |
01-3072 |
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Legal Form : |
Public Limited liability company. The company’s shares are listed on the
Stock Exchanges |
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Line of Business : |
Manufacturer of the fibre cement products
and synthetic blended yarn. |
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 : |
USD
3500000 |
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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 experienced and
respectable businessmen. Trade relations are 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
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Registered Office/ Factory : |
Survey No. 315 IDA
Yelumala Village, R C Puram Mandal, Medak Dist. – 502300, Andhra Pradesh,
India |
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Tel. No.: |
91-40-27813833 / 35 |
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Fax No.: |
91-40-27813837 |
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E-Mail : |
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Website : |
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Corporate
Office : |
“Visaka
Towers”, 1-8-303/69/3 Sardar Patel Road, Secunderabad – 500 003,
Andhra Pradesh, India |
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Tel.
No.: |
91-40-27813833 / 27813835 / 27818058 / 27818777 |
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Fax
No.: |
91-40-27813837 / 27512103 /27812103 |
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E-Mail
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Plant
2 : |
A. C. Division : Behind
Supa Gas, Manickanatham Village, Paramathi, Velur Taluq, Namakkal District,
Tamilnadu – 637207 |
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Plant
3 : |
A. C. Division : Changsole
Mouza, Bankibund, G. P. No. 4, Salboni Block, Midnapore West, West Bengal |
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Plant 4 : |
A. C. Division : Survey
No. 27/1, G. Nagenahalli Village, Kora Hobli, Tumkur Taluk & District,
Karnataka State |
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Plant 5 : |
A. C. Division : Village
Kannawan, P. S. Bacharawan, Tehsil Maharaj Ganj, Raibareli District, Uttar
Pradesh |
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Plant
6 : |
Textile Division : Survey
No. 179 & 180, Chiruva Village, Maudha Taluq, Nagpur District,
Maharashtra |
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Plant
7 : |
Garment Division : No.
427 / 1A, Chettipunyam Village, [Opposite Mahindra City], Chengalpet Taluq,
Kancheepuram District, Tamilnadu |
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Branches
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No. 71, Poornachandra Rao Road, Labbipet, Vijayawada – 520 0101 Tele No. 91-866-2473812 / 2438124 Email: vijayawada@myvisaka.com Adj. Hotel Sudha International, Main Road, Gajuwaka – 530 026 Tele No. 91-891-2517467 / 2515737 Email: vizag@myviska.com Survey No. 177, Bekarai Nagar, Pune-Sanswad Road, Phursungi, Pune, Maharashtra Tele No. 91-20-26991361 / 26993282 Email: vil-pune@eth.net 36, Rajajinagar Industrial Suburb, Pune Bangalore Highway No. 4, Yeshwantpur, Bangalore, Karnataka Tele No. 91-80-3373321 / 3474908 Fax No. 91-80-3371091 Email: bangalore@myvisaka.com Padival Saw Mill Compound, Bangalore Road, Padil-575007, Karnataka Tele No. 91-824-433011 / 433012 Email: mangalore@myvisaka.com C/o TVD Forgings Private Limited No.2, Self Help Industrial Estate, Kovilapakkam, Keelkattalai, Chennai, Tamil Nadu Tele No. 91-40-2470676 Email: chennai@myvisaka.com Door No. 15/87A, Feroke Amsom, Nellur Desom, Kolkata-673 631, West Bengal Tele No. 91-495-2402096 Email: calicut@myvisaka.com No.1, Market Road, Villianur, Pondicherry – 650 110 Tele No. 91-413-6674236, 6666288 Email: pondicherry@myvisaka.com Plot No. 1, 89/2, R No. 1, Vadpa, Bhiwandi Nasik Road, Bhiwandi – 421 302, Maharashtra Tele No. 91-22-25250251 / 25229976 Email: vil-pune@eth.net Tamando, Bhbaneswar Town, Tamando District, Khurda Tele No. 91-674-2471056 No. 1141, Sai Kripa, Trichy Road, Coimbatore, Tamil Nadu – 641 045 Tele No. 91-422-2675059 Email: mktgcoimbatore@myvisaka.com VI/412, Opp. Village Office, Ambalapadi, Puthupar – 678 733, Kerala Tele No. 91-491-2559133 Email: palakad@myvisaka.com Shantiniketan, Plot No. 11B, 11th Cross, New Timber Yard, Unkal – 580401 Tele No. 91-836-2375531 / 32 Email: vil-hubli@eth.net Plot No. 11 to 12, 18 to 21, Chang Sole Mouza, Banki Bundh, G.P No. 4, Salboni, W. Midnapur, West Bengal – 721 101 Tele No. 91-3227-285852 / 285851 Email: midnapur@myvisaka.com No 41, Nagoor Main Road, Ammal Chatiram, Karaikal – 609 604 Tele No. 91-4368-220957 / 220952 Email: karaikal@myvisaka.com SY. No.97/1, 630B, Madapally, Tengana, Kottayam Dist- 686 546 Tele No. 91-481-2471639 Email: chenganacherry@myvisaka.com |
DIRECTORS
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Name : |
Mr. M.
Sreenivasa Rao |
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Designation : |
Chairman |
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Name : |
Dr. G.
Vivekanand |
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Designation : |
Managing
Director |
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Name : |
Mr. B.B. Merchant |
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Designation : |
Director |
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Name : |
Mr. Nagam Krishna Rao |
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Designation : |
Director |
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Name : |
Mr. Gusti Noria |
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Designation : |
Director |
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Name : |
Mr. H. Dayakiran |
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Designation : |
Director |
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Name : |
Smt.
G. Saroja Vivekanand |
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Designation : |
Director
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KEY EXECUTIVES
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Name
: |
Mr. K.
V. Soorianarayanan |
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Designation
: |
Senior
Vice President & Company Secretary |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Indian
Promoters |
5637994 |
52.82 |
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Mutual
Funds and UTI |
14662 |
0.14 |
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Banks,
Insurance Companies |
4925 |
0.04 |
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Foreign
Institutional Investors |
409490 |
3.84 |
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Private
Corporate Bodies |
1300997 |
12.19 |
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Indian
Public |
3258386 |
30.52 |
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NRIs/OCBs |
47903 |
0.45 |
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TOTAL |
10674357 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of the fibre cement products
and synthetic blended yarn. |
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Products : |
Asbestos Cement Products Textile Yarn |
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Exports to : |
Italy,
Belgium, United Kingdom, Spain, Germany, Australia, Mexico, Turkey, Japan,
Thailand and Indonesia |
PRODUCTION
STATUS
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Asbestos Products |
MT |
380000 |
359288 |
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Textile Yarn |
MT |
1816 |
6619.270 |
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Garments |
Pieces |
230 |
21564 |
GENERAL
INFORMATION
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No. of Employees : |
1800 |
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Bankers : |
Andhra Bank Secunderabad Andhra Pradesh State Bank India Industrial Finance Branch, Hyderabad State Bank of Hyderabad Industrial Finance Branch, Hyderabad Term
Lenders : IDBI ICICI Bank UTI Bank Indusind Bank |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
M. Anandam & Company Chartered Accountants 7 ‘A’
Surya Towers, S. P. Road, Secunderabad |
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Associates : |
Visaka Cement Industry Venus Tobacco Company VST Natural Products |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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30000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 300.000 millions |
|
500000 |
12%
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 50.000 millions |
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TOTAL |
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Rs. 350.000
millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
|
10674357 |
Equity
Shares |
Rs. 10/- each |
Rs. 106.744 millions |
|
250000 |
12%
Cumulative Preference Shares |
Rs. 100/- each |
Rs. 25.000 millions |
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Add : |
Shares
forfeited [79408 shares] |
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Rs. 0.397 million |
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TOTAL |
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Rs. 132.141
millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
132.141 |
132.141 |
132.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
746.198 |
593.559 |
489.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
878.339 |
725.700 |
622.000 |
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LOAN FUNDS |
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1] Secured Loans |
1343.245 |
989.450 |
586.500 |
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2] Unsecured Loans |
165.751 |
59.329 |
44.000 |
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TOTAL BORROWING |
1508.996 |
1048.779 |
630.500 |
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DEFERRED TAX LIABILITIES |
78.569 |
62.584 |
0.000 |
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TOTAL |
2465.904 |
1837.063 |
1252.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1520.647 |
1190.206 |
733.500 |
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Capital work-in-progress |
38.194 |
8.275 |
45.500 |
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Preoperative Expenses |
0.870 |
0.000 |
0.000 |
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INVESTMENT |
0.075 |
0.075 |
0.300 |
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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 |
722.468 |
459.595 |
273.000 |
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Sundry Debtors |
315.254 |
177.329 |
169.500 |
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Cash & Bank Balances |
192.649 |
121.941 |
111.600 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
348.835 |
266.308 |
222.600 |
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Total Current Assets |
1579.206 |
1025.173 |
776.700 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
457.656 |
214.034 |
158.800 |
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Provisions |
215.470 |
172.700 |
145.000 |
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Total Current Liabilities |
673.126 |
386.734 |
303.800 |
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Net Current Assets |
906.080 |
638.439 |
472.900 |
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MISCELLANEOUS EXPENSES |
0.038 |
0.068 |
0.300 |
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TOTAL |
2465.904 |
1837.063 |
1252.500 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
3112.020 |
2243.444 |
1710.000 |
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Profit/(Loss)
Before Tax |
290.876 |
223.264 |
161.800 |
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Provision
for Taxation |
98.302 |
79.758 |
60.400 |
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Profit/(Loss)
After Tax |
192.574 |
143.506 |
101.400 |
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Export
Value |
160.689 |
189.990 |
N.A. |
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Import
Value |
582.717 |
405.861 |
N.A. |
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Total
Expenditure |
2610.573 |
1877.104 |
1548.200 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
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Sales Turnover |
|
1155.800 |
860.800 |
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Other Income |
|
10.400 |
9.300 |
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Total Income |
|
1166.200 |
870.100 |
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Total Expenditure |
|
969.100 |
724.200 |
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Operating Profit |
|
197.100 |
145.900 |
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Interest |
|
29.300 |
13.200 |
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Gross Profit |
|
167.800 |
132.700 |
|
Depreciation |
|
31.000 |
31.700 |
|
Tax |
|
44.900 |
28.300 |
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Reported PAT |
|
91.900 |
72.700 |
Notes
2006-06 Quarter 1
Expenditure includes (Increase)/Decrease in stock in
Trade Rs 132.029 million Consumption of Raw Material Rs 515.884 million Staff
Cost Rs 58.527 million Freight Rs 81.982 million Power & Fuel Rs 56.065
million Other expenditure Rs 124.620 million Status of the Investors Complaints
for the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints received during the quarter 05 Complaints disposed off
during the quarter 05 Complaints unsolved at the end of the quarter Nil 1.
Earning Per Share (EPS) has been computed in accordance with the Accounting
Standard 20 issued by ICAI. 2. Other income includes Export incentives to the
extent of a) Rs 6.429 million for current quarter ended June 30, 2006 (Rs 4.550
million previous year) b) Rs 15.926 million for whole year ended March 31, 2006
which are a result of normal export operations. 2. The civil works of Buildings
Products Plant at Vijaywada is going as per schedule. The commercial production
of this unit is likely to commence on October 01, 2006.
2006-09 Quarter 2
1. The EPS has been computed in accordance with the
Accounting Standard 20. 2. The above results have been taken on record by the
Board of Directors at their meeting held on 30.10.2006. 3. Other income
includes Export Incentives to the extent of: a)Rs. 0.244 millions during the
quarter ended 30.09.2006 (Rs.2.938 millions - previous year) b)Rs. 6.673
millions for this year half year ended 30th September 2006 (Rs.
7.488 millions - previous year) c)Rs. 15.926 millions for the year ended
31.03.2006 which are a result of normal export operations. 4. Status of
Investor Complaints. Pending on Received Resolved Pending as on 01.07.2006
during Quarter during Quarter 30.09.2006 a)Non-receipt of Dividend Warrants Nil
26 15 11 b)Non-receipt of Certificates Nil 2 2 Nil c)Non-receipt of Annual
Reports Nil 3 3 Nil TOTAL NIL 31 20 11
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.59 |
1.25 |
1.01 |
|
Long Term Debt-Equity Ratio |
1.26 |
1.06 |
0.88 |
|
Current Ratio |
1.50 |
1.79 |
2.01 |
|
TURNOVER RATIOS |
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|
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|
Fixed Assets |
1.58 |
1.49 |
1.42 |
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Inventory |
5.14 |
5.83 |
6.67 |
|
Debtors |
12.33 |
12.31 |
10.92 |
|
Interest Cover Ratio |
3.47 |
3.95 |
3.35 |
|
Operating Profit Margin(%) |
16.94 |
17.54 |
18.33 |
|
Profit Before Interest And Tax
Margin(%) |
13.45 |
14.01 |
14.38 |
|
Cash Profit Margin(%) |
9.83 |
10.26 |
10.27 |
|
Adjusted Net Profit Margin(%) |
6.34 |
6.72 |
6.33 |
|
Return On Capital Employed(%) |
19.63 |
19.75 |
19.55 |
|
Return On Net Worth(%) |
24.39 |
21.65 |
17.48 |
STOCK PRICES
|
Face
Value |
Rs.10/-
each |
|
High |
Rs.138.00/- |
|
Low |
Rs.134.10/- |
LOCAL AGENCY
FURTHER INFORMATION
History :
Subject was incorporated in June 1981 at Medak District in Andhra Pradesh having Company Registration Number 3072.
Subject is a joint sector company promoted by G. V. Kalavati, G. Vinod, G. Vivekanand and APSIDC. The company was originally incorporated in the name of Viska Asbestos Cement Products in June 1981 and acquired it’s present name in August 1990. The other group companies are Visaka Cement Industry, Venus Tobacco Company and VST Natural Products.
Subject is engaged in the manufacture of the fibre cement products and synthetic blended yarn. It came out with a rights issue aggregating Rs. 50.700 millions (2.985 millions equity shares at a premium of Rs. 7) to part-finance the Rs. 230.700 millions expansion project at it’s existing synthetic yarn facility at Nagpur.
In May 1995, the company obtained ISO 9002, the Quality System Certificate from the Bureau of Indian Standards for its textile division. In November 1995, it came out with a rights issued aggregating 28.959 millions in January 1996. In the year 1997-98, Asbestos unit at Paramathi Velur in Tamilnadu commenced commercial production.
To bring about syngergy in its operations, the company is now negotiating a strategic investment alliance with Shakti Roofing Private Limited, a company producing asbestos cement products with an installed capacity of 36000 MTPA.
ASBESTOS CEMENT
BUSINESS:
Industry Structure and Developments :
Absestos Cement Products continues to be in demand because of the industries
effort in making inroads into rural markets, its affordability, and other
qualities such as corrosion resistance, weather and fire proof nature.
Currently there are 17 players in the Industry with about 49 manufacturing
plants through out the Country. The Products are marketed under their
respective brand names mainly through dealers for the retail market and
directly for projects and government departments. The total production for the
year 2005-2006 was estimated at 2.403 millions metric tones, which represents
about 96% of the industry's installed capacity of 2.5 millions metric tones.
The industry demand as measured by the total sales of the industry has been
growing considerably over the years, the growth for the last year being 16%
i.e. the sales increased from 2.015 millions metric tones in 2004-2005 to 2.334
millions metric tones during the year 2005-2006
Product-wise
Performance :
During the year the company successfully implemented the Raebareli Plant, which
commenced production from 1st January 2006. As against a production
of 2,30,943 tonnes during the previous year the production during the financial
year ended 31st March 2006 was 3,59,288 tonnes recording an increase
of 55.57%. The sales during the financial year 2005-2006 was 3,34,090 tonnes as
against 2,17,059 tonnes sold during the preceding year recording a growth of
about 53.92%
Outlook :
During the year 2006-2007 the company will have the benefit of full production
from the Raebareli Plant. The Board of Directors in the meeting held on
25-04-2006 has approved the merger of Shakti Roofings Private Limited with the
company subject to approval of the members and High Court of Andhra Pradesh.
The company also planning a unit near Vijayawada in the State of Andhra Pradesh
and this unit is expected to commence production by 1st October
2006. These measures should help the company to increase production and sales
in this Division and therefore the production and sales as a whole is expected
to grow in the year 2006-2007.
Financial Performance
:
The gross turnover of Asbestos Cement Division during the year was Rs. 2132.300
millions as compared to Rs. 1385.200 millions during the previous year. The
Profit before tax for the year was Rs. 262.600 millions as compared to Rs.
155.200 millions in the previous year.
Future Plans :
In Asbestos Cement Sheets division, apart from Vijayawada the company have
plans to set up another unit in Ahmedabad. The company has already entered into
an agreement for purchase of land for this purpose.
SYNTHETIC YARN
BUSINESS:
Industry Structure and Developments :
The industry went through a bad time during the first six months of calendar
year 2005 because of low price of cotton and high crude prices. The industry
has been making steady improvement from the second quarter of financial year
2005-2006. The domestic consumption of yarn is increasing and hence we expect
this division to do well during the year 2006-2007.
Product-wise performance
:
The production in the spinning unit during the year 2005-2006 was 6619.27
metric tones as compared to 5681.13 metric tones during the previous year. We
sold 6743.56 metric tones of yarn during 2005-2006 as compared to 4927.11 in
the previous year.
Outlook :
Because of the opportunities listed above the outlook for the industry is
expected to be brighter than the previous year.
Financial Performance :
The turnover of this division during the current year was Rs. 899.800 millions
compared to Rs. 748.800 millions during the previous year. The gross profit
before tax during the year was Rs. 41.100 millions as compared to Rs. 68
millions during the previous year.
GARMENT BUSINESS:
Industry Structure and Developments :
The removal of Quota System has opened the flood gates for export of garments
from India to US & Europe. This coupled with extended quota restrictions on
China until 2008 would help the Indian export of garments.
Industry experts indicate that 'Big Bang' trigger will treble global textile
trade between 2005 to 2015, with Indian textile exports expected to grow at a
CAGR of 21 percent to US $ 50bn by 2010, significantly steeper than the 10
percent forecasted growth of the global textile trade.
Product-wise
performance :
The production and sales of this Division for the first 3 months of commercial
production were 21564 pieces and 19206 pieces respectively. The 230 machine
facility (3 sewing lines) installed in Chennai proved to be the right
investment at the right time which will increase our company's profitability
& turnover in the coming years.
Our sampling department with 16 machines & CADCAM facility can reproduce
any complicated design to enable customer book bulk orders faster.
Outlook :
Many buyers from Europe and few buying houses in India whomsoever visited us
have shown interest to place orders on the company.
The company have shipped 3 containers of 100% cotton trousers to Italy for
labels SONNY BONO, DOUBLE B & BOGGI and a formal trouser consignment to
BALLIN, Canada.
They are also making garments for an American label LEMON GRASS.
Visaka's Garment Unit is expected to get Worldwide Responsible Apparel
Production (WRAP) Certification from 01-05-2006. Out of 1200 garment factories
in Chennai, only 11 are WRAP certified. Visaka will be one amongst these 12
factories from 1st May 2006.
With the infrastructure in place we expect to turn out better performance
during 2006-2007.
Financial Performance
:
During first 3 months of commercial production of this division, the unit has
made a nominal turnover of Rs. 5.153 millions.
Future course of action
:
Asbestos Division :
In respect of the Asbestos Division, use of substitute fibers is being
continuously experimented.
Spinning Division :
In respect of the Spinning Division, they are continuously experimenting with
new blends and shades and higher speeds.
Garments Division :
They may at an appropriate stage recruit European Designers.
Fixed
Assets :
Land
Free Hold, Buildings, Plant & Machinery, Furniture & Fixtures, Office
Equipment, Vehicles, Data Processing Equipment, etc.
WEBSITE
DETAILS
Visaka's
Yarns are used by leading textile mills to manufacture a wide range of fabrics
including shirtings, suitings, fashion fabrics, upholstery and embroidery
laces.
Tips for Fabric Wet Processing :
Because of low shrinkage of Air Jet Yarn, the fabric should be processed
with minimum tension on warp.
Jet scouring is preferred as compared to jiggers (more relaxation time
will give better results)
During drying there should be an overfeed of 4-6%
Use of silicon based softener, non ionic or cationic softener will give
premium cotton-touch handle.
For better results in processing following sequences is recommended:
Pre
treatment
- Wetting detergent of cationic detergent.
- Sacrating agent Aebatex FFC 0.3gms/litre.
- CIBA FLUID 'C' - 1.5 gm/litre.
Scouring preferably Jet Scouring.
Hot wash followed by cold wash.
Jet Dyeing
Stretch drying at stenter
Temperature - 180oC
Exposure - 25 to 30 Seconds
Over feed - 4 to 5 %
Finishing with Cationic softener 5 to 10 gms per litre and Micro Amino
25 to 30 gms per litre. If extra soft handle of fabric is required, weight
reduction process varying from 6% to 12% is recommended.
Avoid singeing. Mild singeing can be done at high speeds and low
exposure because the hairiness in Air Jet yarn is already low.
Visaka Industries was established in
1985 and diversified into Textiles in 1992. In their textile division, they
manufacture yarns using state-of-the-art Twin Air Jet spinning technology from
Murata, Japan with 28 MTS Machines equivalent to 50,000 Ring Spindles. They
produce about 7,000 metric tones of yarn per year and currently export about
2,000 tones to countries around the globe.
Today, Visaka is acclaimed as the biggest Unit with MTS installation in
the world. They have achieved the highest productivity and highest
efficiencies, maintaining the best quality standards in the world. By adhering
to stringent quality control measures and being sincere to quality systems,
Visaka Industries Limited got ISO 9002 certificate in 1995 and Export House
status in 2001.
Visaka commands a 'Place of Pride' for its consistency in quality,
on-time delivery and friendly service in domestic as well as International
markets. Visaka has successfully developed Melange yarns, Grandrelle
yarns, High twist yarns,
and specialty yarns with
different blend styles.
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.86.58 |
|
Euro |
1 |
Rs.57.04 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
53 |
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 |
|