MIRA
INFORM REPORT
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Report Date : |
30.12.2006 |
IDENTIFICATION
DETAILS
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Name : |
EMCO
LIMITED |
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Formerly Known As : |
EMCO
TRANSFORMERS LIMITED |
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Registered Office : |
N-104, MIDC Area, Jalgaon – 425 003, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.09.1964 |
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Com. Reg. No.: |
11-13011 |
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CIN No.: [Company
Identification No.] |
L31102MH1964PLC013011 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKE00379B |
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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 : |
Manufacturing and marketing of
Transformers |
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
5000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having fine track. Available information
indicates high financial responsibility of the company. Trade relations
are fair. Financial position is good. Payments are correct and as per
commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. It can
be regarded as a promising business partner in a medium to medium to long
run. |
LOCATIONS
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Registered Office : |
N-104, MIDC Area, Jalgaon – 425 003, Maharashtra, India |
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Tel. No.: |
91-257-2272492/2272572/2210362 / 2210872 |
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Fax No.: |
91-257-2210098/2272598 |
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E-Mail : |
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Website : |
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Head
Office : |
Plot No. F-5, Road No. 28, Wagle Industrial Estate, Thane – 400 604, Maharashtra, India |
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Tel.
No.: |
91-22-25830517-24 |
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Fax
No.: |
91-22-25820571 |
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E-Mail
: |
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Website
: |
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Regional
Office : |
Mumbai 41/43 Nariman House, Police Court Lane, 4th Floor, Fort, Mumbai – 400 001 Tel. No.: 91-22-22656399 / 22656400 Fax No.: 91-22-22622991 Delhi Office No. E-6, 2nd Floor, J-Block Market, Saket, New Delhi – 110 017 Tel. No.: 91-11-26852239 / 26963575 / 26963576 Fax No.: 91-11-26963574 Kolkata 16-A Shakespeare Sarani, Kolkata – 700 017, West Bengal Tel. No.: 91-33-22428697 / 22103401 Fax No.: 91-33-22481322 Chennai Bhattad Complex, 3rd Floor, No. 30, West Cott, Royapettah, Chennai – 600 014, Tamilnadu Tel. No.: 91-44-28552986 / 28552987 Fax No.: 91-44-28533423 |
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Factory
1 : |
v Plot No. F-5, Road No. 28, Wagle Industrial Estate, Thane – 400 604, Maharashtra v N-104, MIDC Area, Jalgaon – 425 003, Maharashtra v 8, Nand Ghanshyam Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai – 400 098, Maharashtra Tel. 91-22-26873752 Fax. 91-22-26871343 v Gala No. A/17-19, Zero Tax Industrial Estate, Vapi – Silvassa Road, Dadra, Dadra and Nagar Haveli, Union Territory Tel. 91-260-2668177-80 |
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Branches
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Located at :- v Secunderabad, Andhra Pradesh v Bangalore, Karnataka v Indore, Madhya Pradesh v Baroda, Gujarat v
Nagpur, Maharashtra |
DIRECTORS
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Name : |
Mr. Rajesh S. Jain |
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Designation : |
Chairman & Managing Director |
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Date of Birth/Age : |
38 years |
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Qualification : |
B.E. (Elect.) |
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Experience : |
13 years |
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Date of Appointment : |
29.06.1990 |
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Previous Employment : |
Entrepreneur and Youngest Ex-President of IEEMA |
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Name : |
Mr. Shailesh S. Jain |
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Designation : |
Joint Managing Director |
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Date of Birth/Age : |
37 years |
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Qualification : |
B.E. (Chem.) |
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Experience : |
10 years |
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Date of Appointment : |
19.10.1993 |
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Name : |
Mr. R. S. Shah |
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Designation : |
Director – Technical |
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Previous Employment : |
Ex-President of ERDA |
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Name : |
Mr. T. N. V. Ayyar |
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Designation : |
Director |
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Qualification : |
B.Com, FCA |
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Previous Employment : |
Director on GE Capital TFSL, Tata Ceramics, Crest Animation, Sahara India Life Insurance |
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Name : |
Mr. Bheru Choudhary |
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Designation : |
Director |
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Previous Employment : |
Solicitor, Partner of IC Legal |
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Name : |
Mr. Vinod Chandsarkar |
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Designation : |
Director |
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Name : |
Mr. S. V. Deo |
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Designation : |
Independent Director |
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Qualification : |
B.E. (Electrical), PGDBA |
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Previous Employment : |
Ex- Technical Member-MSEB |
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Name : |
Mr. K. N. Shenoy |
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Designation : |
Independent Director |
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Qualification : |
B.E. (Electrical), PGDBA |
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Previous Employment : |
Ex-President of CII, IEEMA and ERDA Ex-Chairman ABB, India |
KEY EXECUTIVES
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Name
: |
Mrs. Priti Alkari |
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Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Shareholding of
promoter & promoter Group |
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Indian |
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Individual / Hindu Undivided Family |
2308528 |
29.19 |
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Bodies Corporate (See note 1) |
718462 |
9.08 |
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Sub-Total |
3026990 |
38.27 |
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Public
Shareholding |
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Institutions |
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Mutual Funds / UTI |
847218 |
10.71 |
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Insurance Companies |
177500 |
2.24 |
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Foreign Institutional Investors |
878834 |
11.11 |
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Foreign Mutual Fund |
425721 |
5.38 |
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Non-Instutions |
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Bodies Corporate |
1246230 |
15.76 |
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Individuals -i. Individual shareholders
holding nominal share capital up to Rs.0.100 millions |
1018378 |
12.88 |
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ii. Individual shareholders holding nominal share
capital in excess of Rs.0.100 millions |
140725 |
1.78 |
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Any Other (specify) |
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I. Clearing Member |
26971 |
0.34 |
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ii. Directors/Relatives |
10915 |
0.14 |
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iii. Market Maker |
6722 |
0.08 |
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iv. NRI (Repatriate) |
52775 |
0.67 |
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v. NRI (Non- Repatriate) |
50393 |
0.64 |
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Grand Total |
7909372 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and marketing of
Transformers |
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Products : |
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Exports to : |
Dubai, Gulf Countries, Russia and Vietnam |
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Imports from : |
Austria, Brazil, Italy, Japan, U.K. and U.S.A. |
PRODUCTION
STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Transformers |
KVA |
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10000000 |
7442950 |
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Electronics Energy Meters |
Nos. |
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13,00,000 |
390457 |
GENERAL
INFORMATION
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No. of Employees : |
1000 |
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Bankers : |
· Dena Bank · Development Credit Bank Limited · The Federal Bank Limited · Sumitomo Mitsui Banking Corporation · ING Vysya Bank Limited · Bank of India · State Bank of Hyderabad · State Bank of India · Andhra Bank · Union Bank of India · Vijaya Bank |
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Facilities : |
(Rs.in millions)
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Banking Relations : |
Satisfactory |
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Auditors : |
P. Raj
& Company Chartered
Accountants |
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Memberships
: |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
Associates
: v Jain Irrigation Systems Limited v Jain Plastics & Chemicals Limited and several Jain Group companies v Purna Properties and Investments Private Limited v Energy Equipment Distributors v Unity Chemicals Subsidiaries
: Verticalbiz.com (India) Limited |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
|
1,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
|
5,00,000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 50.000 millions |
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Total |
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Rs.150.000
millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
|
76394000 |
Equity Shares |
Rs.10/- each |
Rs. 76.394 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 |
76.394 |
61.129 |
58.100 |
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2] Share Warrants |
8.550 |
2.565 |
0.000 |
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3] Reserves & Surplus |
1256.964 |
668.627 |
635.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1341.908 |
732.321 |
693.100 |
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LOAN FUNDS |
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1] Secured Loans |
982.797 |
915.226 |
809.300 |
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2] Unsecured Loans |
80.000 |
253.329 |
0.000 |
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TOTAL BORROWING |
1062.797 |
1168.555 |
809.300 |
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DEFERRED TAX LIABILITIES |
71.288 |
81.742 |
0.000 |
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TOTAL |
2475.993 |
1982.618 |
1502.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
593.973 |
574.881 |
553.200 |
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Capital work-in-progress |
1.390 |
40.281 |
26.000 |
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INVESTMENT |
9.781 |
5.573 |
5.300 |
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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 |
1070.851 |
633.089 |
432.000 |
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Sundry Debtors |
2144.270 |
1305.415 |
966.600 |
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Cash & Bank Balances |
82.242 |
172.813 |
50.200 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
248.545 |
152.437 |
113.300 |
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Total Current Assets |
3545.908 |
2263.754 |
1562.100 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1643.092 |
885.080 |
639.500 |
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Provisions |
31.967 |
16.791 |
6.600 |
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Total Current Liabilities |
1675.059 |
901.871 |
646.100 |
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Net Current Assets |
1870.849 |
1361.883 |
916.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
1.500 |
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TOTAL |
2475.993 |
1982.618 |
1502.100 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other
income] |
4053.834 |
2360.243 |
1725.700 |
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Profit/(Loss)
Before Tax |
283.939 |
120.576 |
49.200 |
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Provision
for Taxation |
93.229 |
24.516 |
51.400 |
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Profit/(Loss)
After Tax |
190.710 |
96.060 |
40.200 |
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Export
Value |
632.665 |
NA |
NA |
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Import
Value |
207.846 |
136.655 |
NA |
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Total
Expenditure |
3769.895 |
2239.667 |
1676.500 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2006 |
31.09.2006 |
|
Sales Turnover |
|
110.55 |
130.49 |
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Other Income |
|
0.00 |
0.00 |
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Total Income |
|
110.55 |
130.49 |
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Total
Expenditure |
|
95.72 |
112.81 |
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Operating
Profit |
|
14.83 |
17.68 |
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Interest |
|
2.63 |
3.95 |
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Gross Profit |
|
12.20 |
13.73 |
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Depreciation |
|
1.49 |
1.43 |
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Tax |
|
3.32 |
3.70 |
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Reported PAT |
|
7.49 |
8.68 |
200606 Quarter 1
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 90.20 million Consumption of Raw Materials Rs 746.30 million Staff Cost Rs 35.20 million Other Expenditure Rs 85.50 million Tax includes Provision for Current Tax Rs 32.80 million Deferred Tax Rs (1.00)million Earlier Year Taxation Rs 0.40 million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 04 Complaints disposed off during the quarter 04 Complaints unresolved at the end of the quarter Nil 1. The above financial results were reviewed by the Audit Committee and then taken on record by Board of Directors at their meeting held on July 20, 2006. The results are subject to Limited Review by Statutory Auditors. 2. The Company has only one reportable Segment i.e. Transmission and Distribution Segment within Power Sector. 3. The ESOP (Compensation) Committee of the Board of Directors at its meeting held on June 21, 2006 has granted 215000 stock option to employees under Employees Stock Option Scheme, 2006 at a exercise price of Rs 450/- per share. 4. The Company has received a Third & Final call money of Rs 26/- per share (Rs 3/- per share towards share capital & Rs 23/- per share towards share premium) from allottees of 9,00,000 equity shares. 5. The Company's wholly owned subsidiary (WOS) viz Emco Energy Ltd incorporated for the purpose of taking up power generation venture has yet to commence activity, hence the consolidated results of the WOS are not published.
200609 Quarter 2
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (103.749) million Consumption of Raw Materials Rs 1081.755 million Staff Cost Rs 42.592 million Other Expenditure Rs 107.527 million Tax includes Provision for Current Tax Rs 36.331 million Deferred Tax Rs (0.848)million Earlier Year Taxation Rs 0.719 million EPS is Basic Status of Investor Complaints for the quarter ended September 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 unresolved at the end of the quarter Nil 1. The above financial results were reviewed by the Audit Committee and then taken on record by Board of Directors at their meeting held on October 18, 2006. The results are subject to Limited Review by Statutory Auditors. 2. The Company has only one reportable Segment i.e. Transmission and Distribution Segment within Power Sector. 3. 3,00,000 Equity Shared were allotted to Promoter and Managing Director of the Company pursuant to the exercise of option attached to the warrants allotted to him on April 11, 2005, pursuant to the special resolution passed by the members at the Extra-ordinary General meeting held on March 29, 2005. The proceeds have been utilised to augment the long term working capital requirements of the Company.
KEY
RATIOS
|
Particulars |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.08 |
1.39 |
1.16 |
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Long Term Debt-Equity
Ratio |
0.49 |
0.62 |
0.44 |
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Current Ratio |
1.46 |
1.40 |
1.40 |
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TURNOVER RATIOS |
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|
Fixed Assets |
4.28 |
2.77 |
1.99 |
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Inventory |
5.23 |
4.92 |
4.02 |
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Debtors |
2.58 |
2.31 |
1.99 |
|
Interest Cover Ratio |
2.56 |
1.68 |
1.30 |
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Operating Profit Margin(%) |
11.72 |
13.39 |
15.41 |
|
Profit Before Interest And
Tax Margin(%) |
10.45 |
11.39 |
12.42 |
|
Cash Profit Margin(%) |
5.55 |
5.67 |
5.32 |
|
Adjusted Net Profit
Margin(%) |
4.28 |
3.67 |
2.33 |
|
Return On Capital
Employed(%) |
21.67 |
17.55 |
13.99 |
|
Return On Net Worth(%) |
18.49 |
13.51 |
5.67 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.715.00/- |
|
Low |
Rs.711.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 19th September, 1964 at Jalgaon in Maharashtra having Company Registration Number 13011 under the name & style of Emco Transformers Limited. The name was subsequently changed to present.
Subject was promoted by Mr. C. D. Gandhi and in July 1979, EMCO Esta Capacitors was amalgamated with the company. Later in September 1986, the company changed hands to Mr. B. H. Jain and Mr. R. S. Jain family and in 1991, Mr. B. H. Jain and his family withdrew from the management of the company. Their stake had been partly taken over by the S. B. Jain family in October, 1990 at a price of Rs. 204/- per share.
The company went public in March, 1995 with PCDs on a right basis to part-finance the expansion plan which entailed setting up an additional manufacturing plant with state-of-the-art equipment.
During 1995-96, the company was awarded the ISO 9001 Accreditation form BVQI. The company had diversified into manufacturing SCADA and Electronic Energy Meters and providing turnkey projects during the period 1997-2000. The project of manufacture 500000 nos. of Electronic Energy Meters was completed in 1998-99.
During the year 1999-2000, the company had diversified into two areas – IT Services in the power sector and a vertical portal for electrical industry called www.electricmedia.com which was a comprehensive source of information and e-commerce for the electrical industry.
The company had allotted 9,00,000 equity shares of Rs.10/- each to promoters on preferential allotment basis on March 25, 2000.
BUSINESS
The company is engaged in manufacturing and marketing of Transformers.
The company manufactures all transformers above 10 MVA 66kV upto 200 MVA 220 kV at its’ Thane plant. The company is the market leader in 132 kV voltage segment and also in the special Furnace Transformers (for steel industry) and Rectifier Transformer (for chemical industry). The company had modernised its existing plant where it will manufacture power transformers upto 160 MVA 220 kV, rectifier transformers upto 900 KVA D C. Its’ technical collaboration with ABB Secheron of Switzerland for a period of 20 years, expired in November, 1994 after being fully absorbed. Presently, the installed capacity is 7500000 KVA.
It is in trade terms with :-
v Amba Conductors
v Ajarekar Battery Plates
v Alfa Lamination
v Akshay Industries
v ATVUS Industries
v Avani Adhechem
v Abhishek Packaging Industries
v Aloke Rub Plast Private Limited
v Alsthom Instruments Transformers Private Limited
v Beta Instruments Company (India) Private Limited
v Bombay Waste Suppliers
v B. R. Enterprises
v Mahendra Electrical Works
v Hi-tech Switchgears Private Limited
v Zigma Paints Private Limited
v Vital Electronic & Manufacturing Company
v Valtec Engineering Works
v Vijay Industries
v Weiler International Electronics Private Limited
The company’s fixed assets of important value include Freehold Land, Leasehold Land, Buildings, Plant & Machinery, Air Conditioners & Office Equipments, Furniture & Fixtures and Vehicles.
Dividend:
In view of the improved performance, a dividend of 30% (Previous Year
20%) for the year ended 31st March 2006, aggregating to Rs.26.132 Millions
(Previous Year Rs. 16.791 Millions), inclusive of tax on distribution of
dividend.
Review of
Operations:
During the year under review, Income from Sales and Services were higher
by 70% at Rs. 4454.776 Millions compared to Rs. 2619.150 Millions in the
previous year. Profit before taxation was significantly higher by 135% at Rs.
283.940 Millions from Rs. 120.576 Millions in the previous year. Growth in
sales and profit was mainly attributable to operational efficiencies.
Profit after tax at Rs. 190.710 Millions for the year has improved by
98% compared to Rs. 96.060 Millions in the previous year. Earning per equity
share improved by 61% at Rs. 26.60 as compared to Rs. 16.50 in the previous
year. The detailed discussion of operation for the year ended 31st March 2006
is given in Management Discussion and Analysis section.
Subsidiary:
During the year, Company has formed a wholly owned subsidiary Company
viz. Emco Energy Limited, mainly to carry on business of generation,
transmission and distribution or otherwise deal in all forms of electrical
power and electrical energy both conventional and non-conventional. The said subsidiary
had no operations during the period ended on 31st March 2006, hence
no profit and loss account has been prepared by it. As required under Section
212 of the Companies Act, 1956, the Audited Statement of Accounts along with
the reports of the Board of Directors of Emco Energy Limited and Auditors'
Report thereon for the period ended 31st March 2006 are annexed.
The Consolidated Financial Statements of the Company and its subsidiary
Company, prepared in accordance with Accounting Standard 21 prescribed by The
Institute of Chartered Accountants of India, forms part of the Annual Report
and Accounts.
Fixed Deposits:
The Company has not accepted any deposits during the year.
Preferential Issues:
On 3rd December 2005, the Company has allotted 2,70,000 equity shares of
Rs. 10/- each at a premium of Rs. 85/- per share to the promoters of the
Company viz. Mr. Rajesh S. Jain and Mr. Shailesh S. Jain, on exercise of Part B
of the warrants allotted to them on preferential basis in accordance with SEBI
guidelines for preferential issue. The Company has received total Rs. 25.650
Millions out of which Rs. 2.700 Millions was towards share capital and Rs.
22.950 Millions was towards share premium. There were no projections made while
raising the funds but the funds has been utilized for the purpose as approved
by the members at the time of the issue of warrants, i.e. augmenting the
long-term working capital requirements of the Company.
Pursuant to approval of Members at the Extra-ordinary General Meeting of
the Company held on 24th April 2006, the Company has allotted 3,00,000 warrants
on 8th May 2006, on preferential basis to Mr. Shailesh S. Jain, a Promoter and
Managing Director of the Company, entitling him to apply for and acquire
3,00,000 equity shares of Rs. 10/- each at price of Rs. 725/- per share
(inclusive of premium) in the Company within 18 months from the date of
allotment of warrants. The Company has received 10% of share price i.e. Rs.
72.50 per share, on allotment of above warrants. Further, there were no
projections made while raising the funds but the funds has been utilized for
the purpose as approved by the members at the time of the issue of warrants,
i.e. enhancing financial resources for the long term working capital margins as
well as capital expenditure.
Issue of Global
Depository Receipts (GDRs):
Their Company's GDR issue of US$ 10 Million made during the year was listed
on the Luxembourg Stock Exchange on 28th June 2005. All the 12,50,000 equity
shares of Rs. 10/- each underlying the said GDRs were issued at a premium of
Rs. 338.24 per share. As on 31st March 2006 no GDRs were outstanding.
Future Business
Plans:
With the ongoing power reforms in India and the thrust of Government of
India on the developments in Power Sector by way of addition in generation
capacity, curtailment in Transmission & Distribution losses and overall
infrastructural improvement in the Transmission & Distribution networks by
way of the Accelerated Power Development & Reforms Programme (APDRP), the
industry outlook is very positive and the business scenario for your Company
has improved considerably. In such a scenario, Company is trying its best to
maximize the shareholders' value by accelerating growth.
With growth oriented business plans on anvil, various measures are
required to enhance financial resources for the long term working capital
margins as well as for capital expenditure, directly or through subsidiaries or
for other permitted and general business purposes. Therefore, Directors at
their meeting held on 10th August 2006 has proposed to raise required funds up
to USD 50 Millions (United States Dollar Fifty Millions) or equivalent sum in
Indian Rupees by issue of Equity Shares and/or Securities
representing/convertible into equity shares in domestic and/or International
markets in the manner as set out in Special Resolutions of the Notice of the
ensuing 41st Annual General Meeting, seeking approval of the members
for the same.
Also, it is proposed to increase the present borrowing limits of the
Board of Directors of the Company from Rs. 5000 Millions to Rs.10000 Millions.
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.44.23 |
|
UK
Pound |
1 |
Rs.86.91 |
|
Euro |
1 |
Rs.58.26 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING 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 |
|