MIRA
INFORM REPORT
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Report Date : |
07.07.2007 |
IDENTIFICATION DETAILS
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Name : |
EVEREST KANTO CYLINDER LIMITED |
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Registered Office : |
501, Raheja Centre, Free Press Journal Marg, 214, Nariman
Point, Mumbai – 400 021, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.06.1978 |
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Com. Reg. No.: |
020434 |
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CIN No.: [Company
Identification No.] |
L29200MH1978PLC020434 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME05245C |
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PAN No.: [Permanent
Account No.] |
AAACE0836F |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on stock exchanges. |
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Line of Business : |
Manufacturing of High Pressure Seamless Gas Cylinders and compressed Natural Gas cylinders for Natural Gas vehicle application. |
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 11000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company manufacturing and marketing high-pressure cylinders. The company’s business is progressing well. Financial position of the company is comfortable. Trade relations are reported as fair. Payments are correct and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Head Office : |
501, Raheja Centre, Free Press Journal Marg, 214, Nariman Point,
Mumbai – 400 021, |
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Tel. No.: |
91-22-22850780 / 22850777 / 22850778 / 22844462 / 22844541 |
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Fax No.: |
91-22-22870720/22870718 |
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E-Mail : |
2. ekc@vsnl.com |
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Website : |
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Area : |
4157 sq. ft. |
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Location : |
Rented |
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Overseas Factory: |
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Area : |
2,15278 sq. ft. |
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Location : |
Owned |
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Factory 1 : |
Plot No. N-62, M.I.D.C. Industrial Area, Kumbavali Naka,
Boisar,Tarapur – 401 506, |
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Tel. No.: |
91-2525-572899 |
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Fax No.: |
91-2525-572932 |
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E-Mail : |
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Area : |
3,40,000 sq. ft. |
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Location : |
Owned |
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Factory 2 : |
Plot No. E-22, M.I.D.C. Industrial Area, Chikalthana, |
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Tel. No.: |
91-240-2485156 / 2485624 |
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Fax No.: |
91-240-2484766 |
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E-Mail : |
ekcaabd@agd2.dot.net.in |
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Area : |
2,37,000 sq. ft |
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Location : |
Owned |
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Branches : |
B-69/2 Wazipur Industrial Area, New Delhi-110052, |
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Area : |
750 sq. ft. |
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Location : |
Rented |
DIRECTORS
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Name : |
Mr. Premkumar K Khurana |
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Designation : |
Chairman and Managing Director |
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Address : |
203, Maker Tower B, Cuffe Parade, Mumbai – 400 005, |
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Date of Birth/Age : |
66 years |
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Qualification : |
B.A., L.L.B. |
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Experience : |
46 years |
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Date of Appointment : |
01.08.1978 |
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Previous
employment: |
Industrialist |
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Name : |
Mr. Pushkar Khurana |
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Designation : |
Whole time Director |
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Address : |
203, Maker Tower B, Cuffe Parade, Mumbai – 400 005, |
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Date of Birth/Age : |
35 years |
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Qualification : |
B. Com |
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Experience : |
13 years |
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Date of Appointment : |
12.09.1994 |
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Previous
employment: |
First Employment |
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Name : |
Mr. Puneet Khurana |
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Designation : |
Whole time Director |
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Address : |
203, Maker Tower B, Cuffe Parade, Mumbai – 400 005, |
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Date of Birth/Age : |
33 years |
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Qualification : |
B. Com., MBA |
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Experience : |
11 years |
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Date of Appointment : |
15.04.1996 |
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Previous
employment: |
First Employment |
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Name : |
Mr. P M Samvatsar |
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Designation : |
Whole time Director |
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Date of Birth/Age : |
55 years |
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Qualification : |
B.E., Diploma in Business Management |
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Experience : |
35 years |
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Date of Appointment : |
17.08.1985 |
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Previous employment: |
Pembril Fluidrive Limited – a Greaves Cotton group Company |
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Name : |
Mrs. Suman Prem Khurana |
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Designation : |
Director |
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Address : |
203, Maker Tower B, Cuffe Parade, Mumbai – 400 005, |
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Date of Birth/Age : |
54 years |
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Qualification : |
B. A. |
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Experience : |
31 years |
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Name : |
Mr. S.S. Khurana |
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Designation : |
Whole Time Director |
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Address : |
203, Maker Tower B, Cuffe Parade, Mumbai – 400 005, |
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Date of Birth/Age : |
50 years |
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Qualification : |
S. S. C. |
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Experience : |
29 years |
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Name : |
Mr. Shailesh Haribhakti |
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Designation : |
Independent Director |
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Name : |
Mr. Krishen Dev |
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Designation : |
Independent Director |
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Name : |
Mr. Naresh Oberoi |
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Designation : |
Independent Director |
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Name : |
Mr. Mohan Jayakar |
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Designation : |
Independent Director |
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Name : |
Mr. Vyomesh Shah |
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Designation : |
Independent Director |
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Name : |
Ms. Josephine Price |
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Designation : |
Non – Executive, Non-Independent Director |
KEY EXECUTIVES
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Name : |
Chanda Makhija |
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Designation : |
Company Secretary |
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Name : |
Ms. Pooja Khurana |
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Designation : |
Key Management Personnel |
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Name : |
Ms. Nishita Khurana |
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Designation : |
Key Management Personnel |
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Name : |
Ms. Vandana Khurana |
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Designation : |
Key Management Personnel |
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Name : |
Mr. Varun Khurana |
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Designation : |
Key Management Personnel |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group |
12067000 |
61.81 |
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Mutual Funds |
1260742 |
6.46 |
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Financial Institutions / Banks |
6372 |
0.03 |
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Foreign Institutional Investors |
2397600 |
12.28 |
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Bodies Corporate |
550967 |
2.82 |
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i. Individual shareholders holding nominal share capital up to Rs.
0.100 million |
852255 |
4.37 |
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ii. Individual shareholders holding nominal share capital in excess of
Rs. 0.100 million |
437694 |
2.24 |
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Clearing Member |
9126 |
0.05 |
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Non Resident Indians (Repat) |
43275 |
0.22 |
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Foreign Company |
1896900 |
9.72 |
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Total |
19521931 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of High Pressure Seamless Gas Cylinders and compressed Natural Gas cylinders for Natural Gas vehicle application. |
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Products : |
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Exports : |
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Products: |
CNG Cylinder |
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Countries: |
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Imports : |
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Products: |
Seamless Tube/Pipe. |
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Countries: |
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PRODUCTION STATUS – As on 31.03.2007
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Products |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Gas Cylinders |
Nos. |
610000 |
510000 |
442933 |
GENERAL INFORMATION
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Customers : |
v Inox Air Products v Steelage Industries v Asea Brown Boveri v Tata Motors Limited v Mahanagar Gas Limited v Indraprastha Gas Limited v Vanaz Engineers Limited |
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No. of Employees : |
500 persons -- 50 persons in office and 450 persons in factory |
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Bankers : |
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State Bank of 11-C, Mittal Tower, 210, Nariman Point, Mumbai – 400 021, ˜ ICICI Bank Limited Free Press House, 214, Nariman Point, Mumbai – 400 021, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
C. D. Prasad and Company Chartered Accountants |
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Address : |
105, Shyam Kamal ‘A’ Wing, Agarwal Market, Vile Parle
(East), Mumbai-400057, |
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Associates/Subsidiaries : |
Associates: v
Everest Kanto Investment and Finance Limited v
Khurana Gases Private Limited v
Medical Engineers ( v
Khurana Fabrication Private Limited v
Khurana Exports Private Limited v
Everest Industrial Gases Private Limited v
Khurana Charitable Trust v
Khurana Education Trust Subsidiaries: v
EKC Industries ( v
EKC International FZE |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity shares |
Rs. 10.00 each |
Rs. 250.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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19521931 |
Equity shares |
Rs. 10.00 each |
Rs. 195.219 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 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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195.219 |
176.250 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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2560.095 |
1333.001 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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2755.314 |
1509.251 |
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LOAN FUNDS |
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1] Secured Loans |
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165.213 |
300.552 |
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2] Unsecured Loans |
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100.505 |
94.416 |
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TOTAL BORROWING |
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265.718 |
394.968 |
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DEFERRED TAX LIABILITIES |
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0.494 |
13.585 |
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TOTAL |
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3021.526 |
1917.804 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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912.508 |
934.787 |
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Capital work-in-progress |
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0.000 |
4.535 |
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INVESTMENT |
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543.019 |
132.172 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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813.341 |
423.309 |
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Sundry Debtors |
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355.643 |
274.872 |
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Cash & Bank Balances |
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318.617 |
289.595 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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924.409 |
494.918 |
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Total
Current Assets |
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2412.010 |
1482.694 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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223.312 |
306.545 |
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Provisions |
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622.699 |
329.839 |
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Total
Current Liabilities |
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846.011 |
636.385 |
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Net Current Assets |
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1565.999 |
846.309 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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3021.526 |
1917.804 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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3208.733 |
2355.024 |
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Trading Sales |
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96.968 |
0.000 |
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Other Income |
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35.298 |
22.186 |
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Profit on sale of Fixed Assets of Overseas
Branch |
|
101.522 |
0.000 |
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Increase / (Decrease) in Stocks |
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272.440 |
2.394 |
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Total Income |
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3714.961 |
2379.604 |
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Profit/(Loss) Before Tax |
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706.642 |
475.513 |
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Provision for Taxation |
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235.909 |
140.610 |
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Profit/(Loss) After Tax |
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470.733 |
334.903 |
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Earnings in Foreign Currency : |
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- From |
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179.058 |
152.155 |
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- From |
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871.506 |
964.279 |
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Total Earnings |
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1050.564 |
1116.434 |
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Imports : |
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Raw Materials |
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1835.819 |
1190.975 |
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Stores & Spares |
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84.044 |
53.134 |
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Total Imports |
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1919.863 |
1244.109 |
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Expenditures : |
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Raw Materials and Components Consumed |
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2068.308 |
1305.754 |
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Trading Purchases |
|
96.450 |
0.000 |
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Operational Expenses |
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335.007 |
238.352 |
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Personnel Expenses |
|
115.626 |
89.440 |
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Finance Charges |
|
45.760 |
37.680 |
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Administrative and Sales Expenses |
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182.479 |
135.258 |
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Depreciation |
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164.689 |
97.607 |
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Total Expenditure |
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3008.319 |
1904.091 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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12.67 |
14.07 |
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Net Profit Margin (PBT/Sales) |
(%) |
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22.02 |
20.19 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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21.26 |
19.67 |
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Return on Investment (ROI) (PBT/Networth) |
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0.26 |
0.32 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.40 |
0.68 |
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Current Ratio (Current Asset/Current Liability) |
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2.85 |
2.33 |
LOCAL AGENCY FURTHER INFORMATION
The company's fixed assets of important value include leasehold land, land residence, factory building, residential building, office building, residential flats, electric installation, plant and machinery, vehicles, office equipment, furniture and fixture and computers.
The company is engaged in manufacturing of Seamless Cylinders for Fire Fighting Application and Beverage Uses, Cylinders for Compressed Industrial Gases (Oxygen, Hydrogen, Nitrogen, Argon, Helium, Air, etc.), Medical Oxygen, Nitrogen Oxide, and CNG Cylinders for Natural Gas Vehicles, CNG Cylinder Cascades, High Pressure Seamless Gas Cylinders and compressed Natural Gas cylinders for Natural Gas vehicle application.
Its’ products range includes:-
v Cylinder Valves
v Valve Protection Guards
v Valve Protection Caps
v Trolleys for extinguishers and hospital use for handling of individual cylinders
v Medical Equipment
v Industrial Equipments
- Cylinder Cascades, Quads for the storage and transportation of large volumes of high pressure gases for dispensing e.g. Compressed Natural Gas, Hydrogen, etc.
- Trailer mounted cylinder bundles for end users of high-pressure gases.
v Purge Bottles / Double Necked Cylinders
These Cylinders had threaded necks at both the end. They find application for purging as well as high Pressure condensate water traps in compressed air lines and on board marine vessels and in defence applications.
It exports CNG Cylinder.
The company is in trade terms with:
1)
Inox Air Products, 56 Jolly Maker Chambers II,
Nariman Point, Mumbai – 400 021,
2)
Vanaz Engineers Limited, 85/1,
3) Steelage Industries Limited, 156, Dr. Mascarenhas Road, Opp. Post Office, Mazgaon, Mumbai – 400 010, Maharashtra
4)
Khamir Industries, 2, Tripati Apartments,
The company has been accredited with ISO 9002 Certification.
Activities
EKC has
rapidly grown to manufacture the
widest range of High Pressure Gas cylinders with the higher water capacity (280 Litres) and
which can withstand an extreme working pressure of 400 Bar. Very strongly
committed to providing high quality cylinders, EKC manufactures its cylinders
from seamless tubes of international quality at its state-of-the-art modern
manufacturing units at
Supplies the widest range of cylinders
for industrial gases. Medical gases, fire fighting equipments, beverage
industry, accumulator shells, aerospace, scientific research, CNG-NGV cylinders
for vehicles and many more applications
Fixed Assets
v
v
v
v
Building Others
v
v
Electric Installation
v
Plant and Machinery
v
Vehicles
v
Office Equipment
v
Furniture and Fixture
v
Computers
v
Gas Cylinders
CURRENT YEAR NOT COMPARABLE WITH THE PREVIOUS YEAR :
During the year in
order to comply with the advice of the Reserve Bank of
PREFERENTIAL ALLOTMENT:
During the year
under review, the Company has raised around Rs. 920.000 millions by allotting
18,96,900 equity shares on a preferential basis to M/s. Bright will Limited at
Rs. 485/- per equity share (including a premium of Rs. 4757- per share) on 3rd
November, 2006. The Objects of the offer were to (a) finance the expansion
plans of the Company in
RESULTS OF OPERATIONS:
The year under
review saw the Company achieve remarkable growth in sales volumes and profitability.
During the year, the total sales volume of cylinders increased to 4, 71,873
nos. as against 3, 61,041 nos. in the previous year. Sales increased to a level
of Rs. 4250.500 millions as compared to Rs. 2355.000 millions in the previous
year, registering an impressive growth of 80% mainly aided by improved CNG
cylinder sales leading to a better product mix. The year under review also saw
export revenues grow by 99% from a level of
DEVELOPMENTS:
The year under
review witnessed significant growth in the market for high pressure gas
cylinders especially of the
CNG variety. The
Company has accordingly taken steps to consolidate its business both in
OUTLOOK:
The Company has consolidated
its position as the market leader in High Pressure Cylinders in
SUBSIDIARIES:
During the year
under review, the Company has formed two wholly owned subsidiary companies,
viz., EKC International FZE in
The Company
The Company ("EKC") is the largest domestic manufacturer of
high pressure seamless gas cylinders. The main
Products manufactured by EKC are:
1. High pressure seamless industrial cylinders
2. High pressure seamless CNG cylinders
3. High pressure seamless CNG cylinder cascades
Strategy:
EKC's strategy is
to sustain its leadership position across its product categories in the
domestic markets, pursue
attractive export
opportunities, implement vertical integration, access cutting-edge
technologies, achieve economies of scale, focus on prudent financial management
and invest in high growth opportunities. EKC has grown by setting up global
scale, world class projects, scaling them up to meet local and global demand
and developing a large pool of qualified and skilled manpower. EKC will
continue its business strategy of building and creating value for all its
stakeholders.
Industry Structure - General
Industrial gas cylinders:
Industrial gas
cylinders are used in various industries ranging from food, medical, fire fighting
and for other industrial purposes and come in a variety of configurations and
sizes.
CNG Cylinders:
CNG segment in
CNG cylinder cascades:
With more and more
states announcing plans for making gas available in their respective states,
there is likely to be more demand for creating the necessary infrastructure for
gas availability. This is likely to push the demand for
Cascades in the
coming years in
Industry Structure - Specific to EKC
Industrial gas cylinders:
EKC manufactures a
wide range of cylinders for industrial and medical gases, fire fighting and
welding equipment,
The beverage
industry and several other applications. Higher industrial activity in
EKC also
manufactures tailor - made cylinders used in defence, scientific research and
aeronautics. The rapid indigenization programs initiated by the government to
reduce dependence on imports are providing fillip to the usage of such
cylinders.
CNG Cylinders:
EKC has about 85%
of the market share in the CNG cylinders in
CNG cylinder cascades:
EKC also
manufactures CNG cylinder cascades. With the expansion of CNG infrastructure in
Opportunities and Challenges
Opportunities:
EKC will capture
the growth opportunities by penetrating the growing natural gas markets in the
country. EKC will continue to maintain its leadership position in the Indian
cylinder industry.
1. Key beneficiary of the structural upswing in the use of CNG
EKC is the key
beneficiary of the growing usage of CNG vehicles in
2. EKC enjoys economies of scale
EKC's existing
manufacturing facilities are already fully utilizing their capacities except at
the new plant at Gandhidham where production started only a year back. The facility
at Gandhidham is expected to ramp up its operations in the financial year
2007-08. Upcoming facility in
3. Increase in exports
EKC currently exports to
4. Supply Chain and customers
The Company
maintains cordial business relationships with its value chain partners, such as
its key raw material suppliers, gas retailers, OEMs and regulatory authorities
like The Chief Controller of Explosives (CCE), Bureau of Indian Standards
(BIS).
Industry Structure - EKC:
EKC is uniquely
positioned to capture the significant growth potential for the market for high pressure
gas cylinders, driven largely by increasing CNG penetration both domestically
and abroad. EKC benefits from being the only incumbent of meaningful size in
terms of facilities for the manufacture of cylinders. This coupled with strong
relationships on the raw material supply side, quality certifications in
multiple countries and a strong safety track record which are of paramount
importance in a highly regulated market. The growth in the demand for
industrial gas cylinders will remain robust driven by the strong growth outlook
for the Indian economy.
Adequacy of Internal Control:
The Company
maintains a system of strict internal controls, including suitable monitoring
procedures. The Company has a good internal control system for tendering and
pricing, finalization of purchases, proper safeguarding of all its assets and
other important functional areas. The internal control system is properly
supplemented by a program of internal audit which is conducted by an
independent firm of chartered accountants. Significant issues are brought to
the attention of the Audit Committee. The internal controls and internal audit
existing in the Company are considered to be adequate vis-a-vis the business
requirements.
Financial Performance vis-a-vis Operational Performance:
The good financial
performance of the Company has been reflective of the excellent operational
results achieved by the Company. During the year, EKC continued to post
impressive financial numbers. The consolidated turnover for the year increased
by 80 per cent from Rs. 2355.000 millions to Rs. 4250.500 crore. And the
consolidated profit after tax was at Rs. 717.400 millions as against Rs.
334.900 millions which is higher by 1 14%. •
Details of the Directors Seeking appointment / re-appointment at the
forthcoming Annual General Meeting:
Ms. Josephine Price
Ms. Josephine
Price, aged 53 years is BA Hons (Law) from the
Representative of
M/s. Brightwill Limited, the allottee of 18,96,900 equity shares of the
Company. Ms. Josephine Price is an Admitted Solicitor,
Mr. Shailesh Haribhakti
Mr. Shailesh
Haribhakti, aged 51 years is the Managing Partner of Haribhakti & Co.,
Chartered Accountants and CEO of Haribhakti Group. He is the only Indian Member
on the Standards Advisory Council of the International Accounting Standards
Board. He is Chairman, Financial Planning Standards Board,
Mr. Krishen Dev
Mr. Krishen Dev,
aged 68 years is a B. Tech - Hons. Mr. Krishen Dev is a Business Consultant. He
has more than 4 decades of business and management experience. He was the CEO
(1993-2000) and also Vice-President-Production (1969-1993) of Century Enka Ltd.
He was President (Business Development) in Reliance Industries Limited from
July, 2000 to December, 2001. He has also been associated in a Joint Venture
between a MNC and the B. K. Birla Group. Mr. Krishen Dev is a Director and
member of Audit Committee of JBF Industries Ltd. Mr. Krishen Dev does not hold
any shares in the Company.
Mr. Mohan Jayakar
Mr. Mohan Jayakar,
aged 56 years, is B.A., LL.B. Mr. Mohan Jayakar is a solicitor and an eminent
lawyer. He has a vast experience of around 30 years in various aspects of law
and specializes in customs, central-excise and foreign exchange matters, including
Writs and Criminal procedures. He has been a member of the Managing Committee
of CEGAT Bar Association. He has attended various corporate matters like Joint
Ventures, Acquisitions, Mergers and has advised corporates in setting up
entities in the Free Trade Zones in India and also worldwide. Mr. Mohan Jayakar
is on the Board of the following Public Limited Companies, viz., Photoquip
India Ltd, Ez-Comm Trade Technologies Ltd, Satyagiri Shipping Company Ltd. Mr.
Mohan Jayakar is a Member of Audit Committee and Shareholders'/ Investors'
Grievance Committee of Photoquip India Ltd. Mr. Mohan Jayakar does not hold any
shares in the Company.
Mr. P. K. Khurana
Mr. R K. Khurana,
aged 66 years, is the Chairman and Managing Director of the Company. He is a
Law and Arts
Graduate. As 'a
founder member of the Company, he has been responsible for its overall
operations and growth since its inception in 1 978. He has been instrumental in
the development of the Company and has dealt with all the facets of its
business ever since the Company was set up. Mr. R K. Khurana is also a Director
of Everest Kanto Investment and Finance Limited. Mr. R K. Khurana holds 24,
43,600 shares of the Company.
Mr. Puneet Khurana
Mr. Puneet
Khurana, aged 33 years, is a commerce graduate from
Business
Administration (International Business) from
Website details
attached
Profile
Subject Established in 1978, EKC has grown
to become pioneer in development & production of industrial & CNG
Cylinders with well over 1.5 million High Pressure gas cylinders and 5.00,000
CNG cylinders in service and three manufacturing plants in India Aurangabad, Tarapur and Gandhi dam and Middle East (UAE) JAFZA in Dubai.
Thanks to a long history in business and adherence to the highest quality
standards, EKC enjoys market leadership in the domestic and favorable position
in international markets.
EKC’s market coverage will not be limited to
Development & Manufacturing of high quality CNG
CYLINDERS used for alternative fuel vehicles is also undertaken by EKC in its
commitment to cleaner environment that controls pollution. EKC CNG cylinders
undergo ultrasonic inspection in the manufacturing line for detection of any
possible hidden defects. These cylinders also undergo a series of cyclic
testing to simulate their operating conditions and even its life.
High Quality of EKC Cylinders is no coincidence, but
continuous efforts of their research & development and quality assurance
personnel. Each EKC cylinder goes through specified testing at every stage of
production by highly qualified quality control process EKC cylinder are
approved in 15 countries by respected regulatory/homologation departments.
EKC group is also a forerunner in developing new standards
in the field through active participation in the apex national standards body
in
View Catalogues:
Russian catalogue
Chinese catalogue
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 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. 40.46 |
|
|
1 |
Rs. 81.29 |
|
Euro |
1 |
Rs. 54.96 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|