MIRA
INFORM REPORT
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Report Date : |
04.07.2007 |
IDENTIFICATION DETAILS
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Name : |
ABHAY CHEM |
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Registered Office : |
92 – 93, Gopal Nagar, Opposite G I D C, Nandida Crossing, Bardoli, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1993 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTA02223E |
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PAN No.: [Permanent
Account No.] |
AAGFA3397J |
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Legal Form : |
Partnership concern with an unlimited liability of the partners. |
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Line of Business : |
Manufacturer, Exporter and supplier of organic fertilizers, bacterial
fertilizers and bio control agents for agricultural applications. |
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 10000 |
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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 concern having satisfactory
track records. Partners are reported as
experienced and respectable businessmen.
Trade relations are reported as fair.
Business is active. Payments
are usually correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
92 – 93, Gopal Nagar, Opposite G I D C, Nandida Crossing, Bardoli, |
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Tel. No.: |
91-2622-225747 |
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E-Mail : |
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Website : |
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Area : |
5000 Sq. fts. |
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Location : |
Owned |
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Production Unit: |
(Manufacture organic Manure) 12 Kms from Bardoli, Akoti, |
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Area : |
4 Acres |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. Abhay Patel |
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Designation : |
Partner |
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Mobile No.: |
91-9925679499 |
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Date of Birth/Age : |
37 years |
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Qualification : |
B. Sc. Graduate |
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Experience : |
14 years |
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Name : |
Mr. Manish Patel |
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Designation : |
Partner |
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Date of Birth/Age : |
34 years |
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Qualification : |
B. Com. Graduate |
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Experience : |
14 years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and supplier of organic fertilizers, bacterial
fertilizers and bio control agents for agricultural applications. |
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Products : |
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Exports : |
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Products : |
Organic Manure |
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Countries : |
African and South – American Countries |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
Cash or Credit (Within 7 days) |
GENERAL INFORMATION
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Customers : |
v
Wholesalers v
Retailers v
End Users |
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No. of Employees : |
35 |
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Bankers : |
HDFC Bank Bardoli Branch, |
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Banking
Relations : |
Satisfactory |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 2.500 millions |
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Borrowed : |
- |
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Total : |
Rs. 2.500 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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2.402 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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0.000 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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2.402 |
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LOAN FUNDS |
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1] Secured Loans |
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0.153 |
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2] Unsecured Loans |
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2.211 |
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TOTAL BORROWING |
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2.364 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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4.766 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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2.052 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.363 |
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Sundry Debtors |
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2.848 |
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Cash & Bank Balances |
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0.335 |
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Other Current Assets |
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0.161 |
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Loans & Advances |
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0.000 |
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Total
Current Assets |
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3.707 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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0.733 |
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Provisions |
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0.260 |
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Total
Current Liabilities |
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0.993 |
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Net Current Assets |
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2.714 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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4.766 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
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Sales Turnover |
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6.270 |
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Other Income |
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0.006 |
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Total Income |
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6.276 |
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Profit/(Loss) Before Tax |
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0.781 |
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Provision for Taxation |
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0.000 |
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Profit/(Loss) After Tax |
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0.781 |
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Expenditures : |
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Interest |
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0.283 |
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Miscellanies Expenses |
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0.006 |
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Depreciation & Amortization |
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0.196 |
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Total Expenditure |
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0.485 |
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Expected Sales (2007-08) : Rs. 15.000 millions
KEY RATIOS
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PARTICULARS |
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31.03.2007 |
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PAT / Total Income |
(%) |
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12.44 |
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Net Profit Margin (PBT/Sales) |
(%) |
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12.45 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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13.56 |
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Return on Investment (ROI) (PBT/Networth) |
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0.32 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.41 |
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Current Ratio (Current Asset/Current Liability) |
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3.73 |
LOCAL AGENCY FURTHER INFORMATION
Trade References
©
Sugar factories in
©
Organic Manures to Farmers directly.
Website details
attached
Profile
Organic fertilizers are the fertilizers made of natural materials that
undergo little or no processing; including the plants, animals, and/or mineral
materials. They are very useful in increasing productivity of the soil and
improve its structure or "workability" immensely. The use of bio
fertilizers also minimizes the danger of over-fertilization by adding
decomposed organic material to the soil. Subject is a
prominent manufacturer, exporter and supplier of high quality organic
fertilizers, bacterial fertilizers and bio control agents for
agricultural applications. The progressive business house offers highly
effective bio fertilizers, bio organic manure, nitrogen fixing bacteria, azotobacter,
PSM, etc. They are dedicated towards constant growth and
development of sustainable solutions for the fertilizer needs of the country's
massive agricultural sector.
Incepted in the year 1993, the company has earned a dignified reputation within
a very short span of time by delivering premier products at the most economical
prices to its clients. The performance of their products always exceeds the
expectation levels of the clients. They are administered by sound management
ethics at every level of their production process to deliver world class
products.
Quality Assurance
Subject is a quality driven organization and maintains the highest
standards of quality at every level of its production process. They follow
strict control mechanism involving routine inspections and checks in order to
ensure flawless production. All their products are manufactured as per globally
accepted standards and practices to deliver world class quality. Every product
is manufactured under the strict vigil of highly experienced quality inspectors
that minimizes any possibility of quality degradation.
Business Objectives
The objectives of
Subject reflect the company's sole motto of offering excellent products at the
most reasonable prices to the global farming community. Their business
objectives are:
- Supplying
high performance products
- Improving the
productivity of the soil
- Reducing cost
inputs
- Improving
hygienic standards
- Offering
ecologically safe products
Timely Delivery
They are known for ensuring timely delivery of the products in the
entire market. Their company possesses a capacious warehousing facility along
with a wide distribution network that helps it to ensure smooth outflow of
goods from the facility.
Research and Development
Subject invests a substantial amount in order to promote knowledge in
the area of technical development, research and production. They are equipped
with an advance laboratory comprising of the latest testing equipments for
conducting various tests. Their qualified research professionals regularly
study the various climatic conditions to develop the perfect solutions as per
requirements. Being acclaimed for providing premium fertilizers, they also make
sure that each category of fertilizer exhibits an exact composition of
materials that can in turn enhance the crop yielding efficiency. Their research
facility enables us to carry out small scale trial batches of new products in
the initial stage.
Infrastructure
They are loaded with an outstanding manufacturing unit comprising of
ultra modern machines and excellent manpower to deliver highly effective bio
fertilizers. The company also has a sound storage capacity that strengthens it
to ensure timely delivery of the products
Primary Competitive
Advantages
© Excellent Quality,
© Reasonable Prices
© Unique
Technology
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 40.58 |
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1 |
Rs. 81.89 |
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Euro |
1 |
Rs. 55.29 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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48 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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