MIRA
INFORM REPORT
|
Report Date : |
16.02.2007 |
IDENTIFICATION DETAILS
|
Name : |
GUJARAT CO-OPERATIVE MILK MARKETING
FEDERATION LIMITED |
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Registered Office : |
Amul Dairy Road, Post Box No. 10,
Anand – 388001, Gujarat, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2005 |
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Year of Incorporation : |
1973 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
BRDG00866F |
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PAN
No.: [Permanent
Account No.] |
AAACG7189H |
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Legal Form : |
A Cooperative
Society registered under the Cooperative Society’s Act in the year 1973. |
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Line of Business : |
Sole marketer of
the original range of Amul Products including milk powder and butter. |
RATING
& COMMENTS
|
MIRA’s Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
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Maximum Credit Limit : |
USD 172504 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an
established and reputed society having excellent brand image and track.
Available information indicates high financial responsibility of the society.
Trade relations are fair. Payments are always correct and as per commitments. The society can be
regarded as a promising business partner in a medium to long run. |
LOCATIONS
|
Registered Office : |
Amul Dairy Road, Post Box No 10,
Anand – 388001, Gujarat, India |
|
Tel. No.: |
91-2692-258506/ 258507/ 258508/
258509 |
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Fax No.: |
91-2692-240208 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Dr. V. Kurien |
|
Designation : |
Chairman |
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Name : |
Shri Ramsinhbhai P. Parmar |
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Designation : |
Director |
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|
Name : |
Shri Jethabhai P. Patel |
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Designation : |
Director |
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Name : |
Shri Ajitsinh R. Thakor |
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Designation : |
Director |
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Name : |
Shri Bhupendrasinh P. Solanki |
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Designation : |
Director |
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|
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|
Name : |
Shri Govindbhai S. Ranpariya |
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Designation : |
Director |
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|
Name : |
Shri Sardarsinh K. Desa1 |
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Designation : |
Director |
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|
Name : |
Shri Vipulbha1 M. Chaudhary |
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Designation : |
Director |
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Name : |
Shri Parthibhai G. Bhatol |
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Designation : |
Director |
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|
Name : |
Shri Manubhal A. Patel |
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Designation : |
Director |
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|
Name : |
Shri Mohanbhai R. Bharwad |
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Designation : |
Director |
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|
Name : |
Shri Moghabhai M. Desai |
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Designation : |
Director |
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|
|
|
Name : |
Shri Babuji U. Thakor |
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Designation : |
Director |
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|
|
|
Name : |
Shri Babuji U. Thakor |
|
Designation : |
Director |
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|
|
|
Name : |
Shri Babuji U. Thakor |
|
Designation : |
Director |
BUSINESS
DETAILS
|
Line of Business : |
Sole marketer of
the original range of Amul Products including milk powder and butter. |
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|
|
|
Products : |
v Milk v Milk Powder v Health Beverages v Ghee v Butter v Cheese v Pizza Cheese v Ice Cream v Paneer Chocolate v
Traditional Indian Sweets v
Edible Oils. |
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|
|
|
Brand Names : |
v
Sagar v
Dhara |
GENERAL
INFORMATION
|
Bankers : |
v
State Bank of India, Anand v
State Bank of Saurashtra, Anand v Bank of Baroda, v
State Bank of
India, Kaira District Central v
Co-Operative
Bank Limited |
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|
|
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Facility |
Secured Loan From Banks – Overdrafts against Fixed
Deposit – Rs. 78.891 Millions |
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Banking
Relations : |
Good |
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|
|
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Auditors
: |
S. R. Batliboi & Company Chartered Accountants |
CAPITAL
STRUCTURE
Authorised Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
500000 |
Equity Shares |
Rs.10/-
each |
Rs.
500.000 Millions |
Issued, Subscribed & Paid-up
Capital :
|
No. of Shares |
Type |
Value |
Amount |
40000000 |
Equity Shares |
Rs.10/-
each |
Rs.400.000
millions |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
400.000 |
400.000 |
400.000 |
|
|
3] Reserves & Surplus |
462.520 |
438.100 |
416.800 |
|
NETWORTH
|
862.520 |
838.100 |
816.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
78.891 |
73.800 |
168.000 |
|
|
2] Unsecured Loans |
0.000 |
675.500 |
0.000 |
|
TOTAL BORROWING
|
78.891 |
749.300 |
168.000 |
|
|
DEFERRED TAX LIABILITIES |
41.397 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
982.808 |
1587.400 |
984.800 |
|
|
|
|
|
|
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APPLICATION OF
FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block]
|
1286.197 |
1116.700 |
1015.300 |
|
Capital
work-in-progress
|
0.000 |
0.000 |
21.200 |
|
|
|
|
|
|
|
INVESTMENT
|
7.291 |
3.300 |
3.300 |
|
|
|
|
|
|
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CURRENT ASSETS,
LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
2270.092
|
1268.500
|
2001.800 |
|
|
Sundry Debtors
|
265.781
|
195.000
|
322.100 |
|
|
Cash & Bank
Balances
|
803.758
|
672.100
|
729.800 |
|
|
Loans &
Advances
|
113.681
|
658.100
|
173.700 |
Total
Current Assets
|
3453.312 |
2793.700 |
3227.400 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current
Liabilities
|
3639.083
|
2030.000
|
3203.300 |
|
|
Provisions
|
124.909
|
296.300
|
79.100 |
Total
Current Liabilities
|
3763.992 |
2326.300 |
3282.400 |
|
Net Current Assets
|
(310.680) |
467.400 |
(55.000) |
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
982.808 |
1587.400 |
984.800 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover
[including other income]
|
29209.972 |
27667.700 |
23807.100 |
|
|
|
|
|
Profit/(Loss)
Before Tax
|
76.120 |
164.500 |
93.000 |
Provision for
Taxation
|
0.000 |
51.100 |
25.000 |
Profit/(Loss)
After Tax
|
76.120 |
113.400 |
68.000 |
|
|
|
|
|
Total Expenditure
|
29200.182 |
27310.500 |
23486.400 |
KEY RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Debt Equity Ratio |
0.49 |
0.55
|
0.53 |
|
Long Term
Debt Equity Ratio |
0.00 |
0.45
|
0.34 |
|
Current
Ratio |
0.90 |
1.04
|
0.99 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
11.05 |
10.97
|
10.02 |
|
Inventory |
16.60 |
17.33
|
12.15 |
|
Debtors |
127.48 |
109.60
|
76.47 |
|
Interest
Cover Ratio |
8.09 |
8.28
|
2.63 |
|
Operating
Profit Margin (%) |
1.14 |
1.26
|
1.36 |
|
Profit
Before Interest and Tax Margin (%) |
0.56 |
0.66
|
0.64 |
|
Cash
Profit Margin (%) |
0.84 |
1.00
|
1.01 |
|
Adjusted
Net Profit Margin (%) |
0.26 |
0.40
|
0.29 |
|
Return on
Capital Employed (%) |
12.92 |
14.55
|
12.88 |
|
Return on
Net Worth (%) |
8.95 |
13.70
|
8.92 |
LOCAL
AGENCY FURTHER INFORMATION
SALES
During
the year, the Federation's sales registered a growth of 1.4 per cent to reach
Rs. 29225.300 Millions (Rs. 29.22 billion) including consignment sales of Rs.
15.300 Millions (Rs. 0.02 billion). This lower than expected overall growth was
owing firstly to low procurement of milk during the first half of the year, and
secondly to unfavourable commodity market prices when procurement normalised.
commodities—to achieve power in the market. Thus, the dairy line in consumer packs
grew by 11.8 per cent during the year. Sales of Amul Milk in pouches increased
by 36 per cent in value terms. A notable development in the area of liquid milk
in pouches has been the successful launch of Amul Milk in the Kolkata market
during December 2004- UHT Milk has grown in value terms by 23 per cent. Amul
Ice cream achieved a sales value growth of 10 per cent, and has strengthened
its position as the undisputed market leader. Despite intense competition,
sales value of Amul Butter grew by 4-5 per cent. The sales of the Amul Cheese
range increased by 21 per cent. Products like Flavoured Milk, Amul Fresh Cream,
Paneer, Mithaimate, Softy Mix and fresh curd demonstrated their potential to
become dominant brands in the coming few years. They have launched a promising
new product called Amul Masti Spiced Buttermilk during the year.
POUCH
MILK
Amul pouch milk has
become the largest contributor to their turnover with annual sales of about Rs.
6260.000 Millions (Rs. 6.26 billion) during 2004-2005 as against Rs. 4620.000
Millions (Rs. 4.62 billion) during the previous year implying a growth of about
36 per cent. During last year they had surveyed major markets for exploring
possibility of opening new markets. Taking into consideration their strong
brand equity,experience of milk marketing and their association with milk in
the consumer's mind, they are planning to open several new markets and will
focus on distribution expansion in the existing metro markets.
Website details
attached :
HISTORY :
The first AMUL
cooperative was the result of a farmers' meeting in Samarkha (Kaira district, Gujarat) on 4th January 1946, called by Morarji Desai under
the advice of Sardar Vallabhbhai Patel. Dairy farmers in Kaira district in
Gujarat organized into a union of cooperatives to counter "exploitive
low" price offered for their milk by
middleman/private milk processors. It had inspiration from the leaders
of India. Eminent leaders like Sardar
Vallabh Bhai Patel, Shri Morarji Desai, Shri Tribhuvandas Patel and Shri Lal
Bahadur Shastri provided vision and inspiration.
The decision was
taken that day in January 1946: Milk producers' cooperatives in villages,
federated into a district union, should alone
handle the sale of milk from Kaira to the government-run Bombay Milk
Scheme. This was the origin of the Anand pattern of cooperatives. The colonial
government refused to deal with the cooperative. The farmers called a milk strike. After fifteen days the
government capitulated. This was the beginning of Kaira District Cooperative
Milk Producers' Union Ltd., Anand, registered
on 14 December 1946.
Gujarat's milk unions
banded together in 1973 to form the Gujarat Cooperative Milk Marketing
Federation Limited (GCMMF). GCMMF was established as a state level apex
marketing organization to market its dairy cooperatives' products under a
single brand name "AMUL". GCMMF became the sole marketer of the
original range of AMUL products including milk powder and butter.
BUSINESS :
Subject is India's largest food company with turnover
of more than Rs.23000.000 Millions. It is exclusive marketer of AMUL, Sagar and
Dhara branded products. Its products range comprises milk, milk powder, health
beverages, ghee, butter, cheese, Pizza cheese, Ice cream, Paneer chocolate,
traditional Indian sweets and edible oils. Subject cannot be viewed only as a
business organization, it is an institution created by the milk producers to
primarily safeguard their interest economically, socially as well as
democratically. (While business houses create profit and distribute profits to
the share holders, in case of GCMMF its profits are ploughed back opt the
framers through the unions as well as village societies and this circulation to
the capital with value addition within the structure with the final beneficiary
being the rural framer eventually contributes to the development not only of
the farmers but of the village community).
List of
Products Marketed:
Breadspreads:
v
Amul Lite Low Fat Breadspread
v
Amul Cooking Butter
Cheese Range:
v
Amul Pasteurized Processed Cheddar
Cheese
v
Amul Processed Cheese Spread
v
Amul Pizza (Mozarella) Cheese
v
Amul Shredded Pizza Cheese
v
Amul Malai Paneer (cottage
cheese), Frozen, Refrigerated and Tinned
v
Utterly Delicious Pizza
Mithaee Range (Ethnic
sweets):
v
Amul Shrikhand (Mango, Saffron,
Almond Pistachio, Cardamom)
v
Amul Amrakhand
v
Avsar Ladoos
UHT Milk Range:
v
Amul Shakti 3% fat Milk
v
Amul Lite Slim-n-Trim Milk 0% fat milk
v
Amul Shakti Toned Milk
v
Amul Snowcap Softy Mix
Pure Ghee:
v
Amul Cow Ghee
Infant Milk Range:
v
Amul Infant Milk Formula 1
(0-6 months)
v
Amul Infant Milk Formula 2
( 6 months above)
Milk Powders:
v
Sagar Tea and Coffee Whitener
v
Sweetened Condensed Milk:
v
Amul Mithaimate Sweetened Condensed
Milk
Fresh Milk:
v
Amul Taaza Toned Milk 3% fat
v
Amul Gold Full Cream Milk 6% fat
v
Amul Shakti Standardised
Milk 4.5% fat
v
Amul Slim & Trim Double
Toned Milk 1.5% fat
v
Amul Saathi Skimmed Milk 0%
fat
v
Amul Cow Milk
Curd Products:
v
Yogi Sweetened Flavoured
Dahi (Dessert)
v
Amul Masti Dahi (fresh curd)
v
Amul Masti Spiced Butter
Milk
v
Amul Lassee
Amul Icecreams:
v
Royal Treat Range
(Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)
v
Nut-o-Mania Range (Kaju
Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi,
Shista Pista Kulfi)
v
Utsav Range (Anjir,
Roasted Almond)
v
Simply Delicious Range
(Vanilla, Strawberry, Pineapple, Rose, Chocolate)
v
Nature's Treat (Alphanso
Mango, Fresh Litchi, Anjir, Fresh Strawberry, Black Currant)
v
Sundae Range (Mango, Black
Currant, Chocolate, Strawberry)
v
Millennium Icecream
(Cheese with Almonds, Dates with Honey)
v
Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi
Badam Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
v
Cool Candies (Orange,
Mango)
v
Cassatta
v
Tricone Cones
(Butterscotch, Chocolate)
v
Megabite Almond Cone
v
Frostik - 3 layer chocolate
Bar
v
Fundoo Range - exclusively
for kids
v
SlimScoop Fat Free Frozen
Dessert (Vanilla, Banana, Mango, Pineapple)
v
Health : Isabcool
Chocolate &
Confectionery:
v
Brown Beverage:
Milk Drink:
v
Amul Kool Flavoured Milk
Health Beverage:
v
Amul Shakti White Milk Food
Ready to Serve Soups:
v
Masti Tomato Soup
v
Masti Hot & Sour Soup
Members' Development:
To educate and train male & female members of their
Cooperatives they conduct Cooperative
development programmes at the village level. The various programmes
Implemented at village level are as
follows:
v
Women Education Programme
v
Member Education Programme
v
Members' Business development Programme
v
Managing' Business development
Programme
v
Managing Committee Member Training
v
Leadership Development Programme
v
VDCS Staff Orientation Programme
v
MILK Day Programme
v
Women Awareness Programme
v Women Leadership Development Programme
v
School programmes
v
BOD orientation Programme
v
Special campaign Programme for private
traders
v
Special boards of directors' workshop
The major achievements of the programme
are as follows:
v
Increased awareness among members
reflected though
v
Democratic Governance
v
Regular elections
v
Regular management committee/board
meetings
v
Regular audit of societies
v
Open & Voluntary Membership
v
Increase in membership
v
Increase in pourer members
v
Increase in Women membership
v
Women Empowerment
v
Increase in Women Management committee
member
v
Increase in Women Dairy Cooperative
Societies
v
Increase in no. of Women Board of
Directors
v
Adoption of new technology to improve
Quality of milk production & processing
v
Milk-testers - Milk Quality Improvement
v
Pucca society house - Environment
v
Pucca cattle shed - environment
Improvement
v
Automatic Milk Collection Station -
Milk Quality Improvement
v
Computerization of milk collection 0
Milk Quality Improvement
v
Village Bulk Chilling Unit - Milk
Quality Improvement
v
Bulk coolers- Milk quality Improvement
Over
and above this, pursuing to their effort sin implementation of Total
Quality Management (TQM) at all levels,
they have also started Village Self-leadership
Development Programme through Internal Consultant Development (ICD)
intervention for addressing the needs
of Primary members & Dairy Co-operative Societies through development of internal consultants at the
village level and implementing need based
modules for development of the villages through these internal
consultants,.
The major objectives of the
intervention pare as follows:
v
To improve quality, hygiene &
productivity at all level
v
To implement the concepts of TQM to the
primary producers
v
To develop social security measures
v
To improve health care of animal
v
To take Co-operative Development to the
next level
v
To develop self-leadership at society
level
v
To facilitate continuous & speedy
flow of information at all levels
v
To take the relationship between
Producer & Society beyond economics
PRESS RELEASES :
Cover Story
The Amul
twist
RS Sodhi,
General Manager (Marketing), GCMMF, in conversation with Shuchi Srivastava,
explains Amul’s retailing plans and expansion strategies The Gujarat
Cooperative Milk Marketing Federation (GCMMF) has achieved 18 per cent growth
during 2003-04 to close the year with a Rs 28820.000 Millions turnover, so it
has been an enthusiastic year for Amul
Their March closing was exceptionally good as an overall growth was witnessed
across all their dairy products.
What
percentage of this growth would you attribute to business garnered from the
organised retail segment in India?
As far as GCCMF is concerned, the contribution from the organised retail
segment would be negligible, say about 2-3 per cent. Except for a few cities
like Hyderabad and Bangalore, the actual penetration of the organised retail
segment is not really significant in other parts of India.
But what
about the fact that the distribution of the products is carried out through a
network of 4,000 stockists who, in turn, supply to 500,000 retail outlets?
These outlets would not fall in the organised segment but rather in the
traditional unorganised one.
You have
recently introduced new processes where you plan to launch new products, or
re-launch old ones every Thursday of the week? Don’t you think such an increase
in the product portfolio would be enhanced if these new products are present in
organised retail formats?
Yes, the
opportunity is immense but as I said earlier, due to the lack of an established
market presence, such formats are not really high on their list of priorities.
It would make much more sense to liase with local selfowned supermarkets who
have all the amenities of an organised retail format. There is no special
strategy to specifically target the organised segment. This does not mean that
they don’t figure on their list at all; they do, but just as any other
category.
Are the
products accorded any special treatment in terms of packaging, labelling or
other areas when sent to organised retail formats?
No, none at all they have the same range of products across all categories.
Given
that there has been a shift towards branded food products, across urban
markets, why has their sale through organised retail formats not taken off?
Clearly because there is no significant cost advantage offered to consumers in
order to lure them away from the comfort of their local mom-andpop stores. At
the latter option, one may still find a definite price advantage that is
instrumental in cementing a longlasting relationship with the customer. An
inviting ambience is an experience that organised retail formats offer but
gradually this advantage too is losing its edge as the smalltime, so-called
unorganised retailer is also waking up to the fact.
GCMMF
exports set to top Rs 1250.000 Millions
Their Regional Bureau /
Ahmedabad March 18, 2005
Dairy exports of the
Gujarat Cooperative Milk Marketing Federation (GCMMF) are set to cross Rs
1250.000 Millions by the end of the current financial year. This accounts for
over 55 per cent of the country’s total dairy exports of Rs 2250.000 Millions.
The
Rs 30000.000 Millions GCMMF’s export had fallen to Rs 440.000 Millions in
financial year 2003-2004, as compared with exports of Rs 780.000 Millions in
the previous year due to the acute shortage of milk in the country.
The co-operatives
major has already crossed Rs 1000.000 Millions of dairy exports, and plans to
close the current financial year with a exports in excess of Rs 1250.000
Millions.
It also hopes to
achieve a 50 per cent growth in the next financial year over the current
financial year’s numbers on account of the increased international demand.
“They are prepared
for the post-quota scenario by investing in various cost reduction and quality
control measures. Skimmed milk powder accounted for over 70 per cent of their
overall exports. Their new product, ultra heat treated milk, has been well
accepted in the international markets along with their cheese, ice-cream, full
cream milk powder, gulab jamuns, shrikhand,” R S Sodhi, chief general manager,
GCMMF, said.
The co-operative
exports to countries like the Middle East, Singapore, Sri Lanka, Hong Kong,
Philippines, Combodia amongst others. It exported its products to Algeria,
Afghanistan and various other African countries for the first time in the
current year.
“Amul Sleak has
helped us cut down on production costs. However, India’s import duty on milk —
at around 40 per cent — is very low compared with the subsidy offered to 65 per
cent subsidies offered to dairies in Europe and the US. Thus, there is a need
to hike import duty on milk and milk products,” said BM Vyas, managing
director, GCMMF.
Innovative use of
technology and proper resource management can help the industry achieve export
competitiveness in terms of price, yield and quality, said Vyas.
“They can
successfully meet the challenges and harness new opportunities if they adopt
the latest technology for processing, packaging and marketing of milk and milk
products. They need to organise milk producers and professionally manage their
workings,” he added.
India is the biggest
producer of milk in the world with an output of over 90 million tonnes.
But productivity has
remained low at 990 kg per lactation per year, compared with the world average
of 2,030.
AWARDS :
Ramkrishna Bajaj National Qality Award-2003
The Gujarat
Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in
the service category of the prestigious IMC Ramkrishna Bajaj National Quality
Award - 2003. The Certificate of Merit was presented at a glittering ceremony
held at Mumbai on March 11 by the Governor of the Reserve Bank of India, Dr. Y.
V. Reddy.
According to
Shri B. M. Vyas, Managing Director, GCMMF, this recognition has once again
reiterated GCMMF's commitment to quality and excellence. The biggest strength
of GCMMF is the trust it has created in the minds of consumers regarding the
quality of its products. GCMMF and its brand Amul stand for guaranteed purity
for whatever products it produces, he added.
GCMMF has
bagged this award for adopting noteworthy quality management practices for
logistics and procurement. Over the years, it has established an efficient
supply chain that penetrates even the remotest corners of the country. The
information systems of the Federation are comprehensive and include details on
product quality, delivery performance, supplier quality, disaster recovery and
all essential commercial areas, the citation reads.
The
Ramakrishna Bajaj National Quality Award is based on framework and principles
almost similar to the Malcolm Baldrige Award that is given by the President of
the United States to businesses - manufacturing and service, small and large -
and to education and healthcare organizations that apply and are judged to be
outstanding in seven areas: leadership, strategic planning, customer and market
focus, information and analysis, human resource focus, process management, and
business results.
Mr. B M Vyas receives the Qimpro Gold Standard Award Qimpro Platinum Standard, the highest individual honour, has in recent years been awarded to Chandra Mohan, Aditya Birla, Deepak Parekh, F C Kohli, Dr J J Irani, Azim Premji, and Kumar Mangalam Birla. Qimpro Awards are recognized by the ASQ and the Institute of Quality Assurance, UK
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.44.09 |
|
UK Pound |
1 |
Rs.86.59 |
|
Euro |
1 |
Rs.57.92 |
SCORE
& RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
9 |
|
OPERATING
SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT
LINES |
1~10 |
9 |
|
--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 |
|
81 |
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 |
|
PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you
having employed MIPL for such purpose. You will use the information as aid only
in determining the propriety of giving credit and generally as an aid to your
business and for no other purpose. You will hold the information in strict
confidence, and shall not reveal it or make it known to the subject persons,
firms or corporations or to any other. MIPL does not warrant the correctness of
the information as you hold it free of any liability whatsoever. You will be
liable to and indemnify MIPL for any loss, damage or expense, occasioned by
your breach or non observance of any one, or more of these conditions