MIRA
INFORM REPORT
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Report Date : |
12.07.2007 |
IDENTIFICATION DETAILS
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Name : |
JAY BHARAT MARUTI LIMITED |
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Registered Office : |
Neel House, Lado Sarai, Opposite Qutab
Minar, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.03.1987 |
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Com. Reg. No.: |
27342 |
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CIN No.: [Company
Identification No.] |
L29130DL1987PLC027342 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKJ01324B |
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PAN No.: [Permanent
Account No.] |
AAACJ2021K |
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Legal Form : |
Subject is a public limited liability company. The company’s shares
are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of sheet metal components for automobiles. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1700000 |
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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 and reputed company having satisfactory
track. Directors 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 company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Neel House, Lado Sarai, Opposite Qutab
Minar, |
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Tel. No.: |
91-11-26536570-72 |
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Fax No.: |
91-11-26511512 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No. 5, Maruti Joint Venture Complex, Gurgaon – 122015, Haryana |
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Tel. No.: |
91-124-2398446-47 |
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Fax No.: |
91-124-2341321 |
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Factory 2 : |
Sector 36, Mohammadpur Jharsa, Near |
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Tel. No.: |
91-124-2370613-14 |
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Fax No.: |
91-124-2371356 |
DIRECTORS
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Name : |
Mr. S. K. Arya |
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Designation : |
Vice Chairman and Managing Director |
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Name : |
Mr. S. Maitra |
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Designation : |
Director (MUL Nominee) |
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Name : |
Mr. U. C. Aggarwal |
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Designation : |
Director |
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Name : |
Mr. D. P. Agarwal |
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Designation : |
Director |
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Name : |
Mr. S. D. S. Mongia |
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Designation : |
Director |
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Name : |
Mr. S. P. Arya |
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Designation : |
Director |
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Name : |
Mr. R. Dayal |
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Designation : |
Director |
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Name : |
MS. Esha Arya |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Rajeev Ranjan |
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Designation : |
Assistant Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
3215750 |
14.85 |
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Bodies Corporate |
9468600 |
43.73 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
9200 |
0.04 |
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Financial Institutions / Banks |
1200 |
0.01 |
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Central Government/ State Government(s) |
400 |
0.00 |
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Insurance Companies |
204218 |
0.94 |
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Foreign Institutional Investors |
622542 |
2.88 |
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Non-institutions |
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Bodies Corporate |
4298412 |
19.85 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 1 lakh |
3001785 |
13.87 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 1 lakh. |
603855 |
2.79 |
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NRI/OBCs |
224038 |
1.03 |
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TOTAL |
21650000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of sheet metal components for automobiles. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
438 |
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Bankers : |
v
Canara Bank v
The Bank of Tokyo Mitsubishi Limited v
ICICI Bank Limited |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
statutory
auditors
Mehra Goel and Company Chartered Accountants internal
auditors
Sahni Natrajan and Bahl Chartered Accountants |
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Parent Company : |
Maruti Udyog Limited |
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Associates/Subsidiaries : |
v
Jay Bharat Exhaust Systems Limited v
JBM Industries Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity Shares |
Rs.10/- each |
Rs. 120.000
millions |
|
3000000 |
Preference Shares |
Rs. 10/- each |
Rs. 30.000 |
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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 |
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5417912 |
Equity Shares |
Rs.10/- each |
Rs. 54.179 Millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
54.100 |
54.100 |
54.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
392.500 |
318.700 |
237.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
446.600 |
372.800 |
291.100 |
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LOAN FUNDS |
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1] Secured Loans |
366.000 |
385.400 |
197.600 |
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2] Unsecured Loans |
188.700 |
196.200 |
268.000 |
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TOTAL BORROWING |
554.700 |
581.600 |
465.600 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
1001.300 |
954.400 |
756.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1019.700 |
958.300 |
869.000 |
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Capital work-in-progress |
52.900 |
12.400 |
7.300 |
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INVESTMENT |
23.500 |
102.200 |
84.500 |
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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 |
160.500
|
174.100 |
136.900 |
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Sundry Debtors |
223.100
|
201.000 |
159.400 |
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Cash & Bank Balances |
13.300
|
15.600 |
37.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
160.500
|
167.700 |
87.900 |
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Total
Current Assets |
557.400
|
558.400 |
421.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
633.000
|
658.000 |
608.300 |
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Provisions |
19.200
|
18.900 |
17.400 |
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Total
Current Liabilities |
652.200
|
676.900 |
625.700 |
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Net Current Assets |
[94.800]
|
[118.500] |
[204.100] |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1001.300 |
954.400 |
756.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales
Turnover |
5110.500
|
4914.100
|
4222.100
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Other
Income |
25.400
|
29.000
|
22.100
|
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Stock
Adjustments |
13.800
|
-07.000
|
01.300
|
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Total
Income |
5149.700
|
4936.100
|
4245.500
|
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Profit/(Loss) Before Tax |
147.300
|
122.400
|
92.500
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Provision for Taxation |
51.900
|
19.100
|
34.100
|
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Profit/(Loss) After Tax |
95.400
|
103.300
|
58.400
|
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Expenditures : |
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Raw
Materials |
3389.400
|
3141.000
|
2647.000
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Excise
Duty |
821.700
|
765.600
|
691.400
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Power
& Fuel Cost |
72.900
|
67.400
|
76.800
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Other
Manufacturing Expenses |
127.800
|
111.700
|
81.800
|
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Employee
Cost |
182.600
|
191.100
|
139.500
|
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Selling
and Administration Expenses |
97.800
|
234.300
|
232.300
|
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Miscellaneous
Expenses |
22.000
|
20.100
|
14.600
|
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Interest
& Financial Charges |
38.300
|
46.900
|
57.100
|
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Depreciation
|
249.900
|
235.600
|
212.500
|
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Total Expenditure |
5002.400 |
4813.700 |
4153.000 |
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SUMMARISED RESULTS
|
PARTICULARS |
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|
31.03.2007 |
|
Type |
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|
Full
Year |
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Sales
Turnover |
|
|
5195.400 |
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Other
Income |
|
|
29.800 |
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Total
Income |
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|
5225.200 |
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Total
Expenditure |
|
|
4769.300 |
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Operating
Profit |
|
|
455.900 |
|
Interest |
|
|
54.400 |
|
Gross
Profit |
|
|
401.500 |
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Depreciation |
|
|
216.400 |
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Tax |
|
|
65.400 |
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Reported
PAT |
|
|
119.700 |
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Dividend
(%) |
|
|
200.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
1.39 |
1.58 |
2.09 |
|
Long
Term Debt-Equity Ratio |
1.13 |
1.41 |
2.04 |
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Current
Ratio |
0.73 |
0.69 |
0.72 |
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TURNOVER
RATIOS |
|
|
|
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Fixed
Assets |
2.13 |
2.35 |
2.25 |
|
Inventory |
30.55 |
31.60 |
30.06 |
|
Debtors |
24.10 |
27.27 |
28.36 |
|
Interest
Cover Ratio |
4.85 |
3.61 |
2.62 |
|
Operating
Profit Margin(%) |
8.52 |
8.24 |
8.58 |
|
Profit
Before Interest And Tax Margin(%) |
3.63 |
3.45 |
3.54 |
|
Cash
Profit Margin(%) |
6.76 |
6.90 |
6.42 |
|
Adjusted
Net Profit Margin(%) |
1.87 |
2.10 |
1.38 |
|
Return
On Capital Employed(%) |
18.98 |
19.79 |
17.81 |
|
Return
On Net Worth(%) |
23.29 |
31.12 |
21.50 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.43.95/- |
|
Low |
Rs.43.00/- |
LOCAL AGENCY FURTHER INFORMATION
History
Incorporated on 19 Mar.'87, Jay Bharat Maruthi (JBML) was promoted as a joint
venture by Maruti Udyog (MUL) and private promoters namely F C Singhal and S K
Arya & associates. The company manufactures sheet metal components,
assemblies and sub-assembles. It is a dedicated ancillary to Maruti Udyog. The
entire requirement of MUL for specified sheet metal components for existing as
well as future models of Maruti is met by JBML.
During 1995-96 the company developed various new sheet metal components for the
Zen model produced by MUL. The company has started supplying complete muffler
assemblies to MUL instead of the components for muffler. During 1996-97,
company has increased the installed capacity by 5000 MT.
During 1998-99, the company has successfully implemented the ERP Software
System BaaN - IV, the system has been live since April, 1999, in the areas of
manufacturing, finance and sales & distribution.
In 1999-2000, the Company has entered into a joint venture agreement with
Nagata Auto Parts Company Limited of
During 2000-2001 the company has gone into diversification in areas of
operations and two wheeler segment. It is also suppling to Yamaha Motor Escorts
Limited. The company is also planning to go for expansion of new project namely
the fuel neck project and the technical clearance from MUL has also been obtained.
For this project the company has entered an technical assistance agreement with
M/s Hamamatsu Pipe Co
Business
Performance:
Maruti Udyog Limited (MUL) is main customer of the Company. With the continuing
and consistent support of MUL and in line with the growth of automobile
industry and Maruti Udyog Limited in particular, the Company has recorded gross
sales of Rs. 5110.48 million in the closed financial year 2005-06, a growth of
4% over previous year. However the real growth in net sale is 7.34% (net of
lease charges) over previous year as lease charges of dies provided by customers
(reimbursed in the price of components) has gone down by Rs.145.070 Millions
during the financial year ended 31.03.06 as compared to the previous financial
year. The same has resulted into reduction of sales to that extent.
Further the Company has recorded profit before tax of Rs.147.26 million (PY:
Rs.122.49 million) and profit after tax of Rs.95.41 million (PY Rs.103.36
million)
The operational & financial performance of the Company is discussed in
Management Discussion and Analysis (forming part of this report).
Expansion:
The Company has become one stop shop for manufacturing of body in white parts
and assemblies with the facilities of Pressing, Welding, Exhaust line, Axle
line, Plating and CED Painting etc. Further to meet the growing demand of the
customers, the Company is expanding its pressing and welding facilities.
Sub-division of Equity Shares
During the period under review, the Company has sub-divided one (1) equity
share of Rs.10/- into two (2) equity shares of Rs.5/- pursuant to the approval
w.e.f. 1st October 2005.
Awards/Certification:
During the year, the esteemed customer MUL has conferred the following
awards in recognition of the Company's commitment & performance:
* Vendor Performance Award for the year 2004-05 for 'Alto Cost
Reduction'.
* Vendor Performance Award for the year 2004-05 for 'Yield
Improvement'.
* Vendor Performance Award for the year 2004-05 for 'Overall
Commendation'.
* Tier-2 Vendors Up gradation Certificate for the year 2004-05
Apart from the above, the Company has also bagged 'Commendation for Significant
Achievement' Award from II
- Exim Bank for 2005.
Further Mr. S. K. Arya, Vice Chairman & Managing Director of the Company
received the following awards during the year:
- 'Haryana Rattan' by H.E. Dr. A R Kidwai, Hon' Governor of Haryana, patroned
by All India Conference of Intellectuals on 25th September 2005.
- 'UDYOG RATAN' Award in recognition of contribution to the State's economic
development. Shri. Bhupinder Singh Hooda, Hon'ble Chief Minister of Haryana
presented the award on 15th December 2005.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry overview & Outlook:
The automobile industry in
Automobile companies across the globe are cashing on the rising incomes, easy
finance and high aspiration levels among the Country's middle class. With auto
majors betting big on luxury vehicles and growing affluence of the Indian
consumer,
Indian Car industry created a new history in 2005-06 by record sale of 1.318
Millions number of passanger vehicles (previous year 1.228 Millions), an
increase of 7%. Maruti Udyog Limited, market leader sold 561819 numbers of
vehicles (previous year 536301), an increase of 5% approximately. The latest
launch of MUL namely Swift received well-deserved attention of the
market.
The Indian auto sector is in the expansion and acquisition mode. FY 05-06 saw
its move in this direction with a spree of overseas acquisitions apart from
capacity expansions. During this period, the Indian automobile sector has seen
significant developments such as:
* Government recognition of tremendous opportunities in the auto sector and
assurance to domestic and global auto companies to make
* Reduction in excise duty for small car from 24% to 16% in recent budget
2006-07.
* Establishment of manufacturing facilities and testing centers by auto majors
aided by the liberal Government policy. Besides global auto companies, the
domestic auto industry also came up with new models and geared to launch more
models in near future.
* The increase in demand for auto components in
* The Indian auto ancillary sector's export moved steadily northwards and it
has already achieved a milestone of $1.8 billion worth of exports and expected
to reach $20 - $25 billion by 2015.
* Overseas acquisitions by Indian auto ancillary companies' and becoming Indian
Multinationals.
* The Government of
The Company is a part of the Indian auto components industry and manufactures
auto parts primarily for Maruti Udyog Limited, its joint venture. partner and
market leader in passenger vehicles. The Indian auto ancillary industry is a
mix of organized and unorganized operations catering to domestic OEMs, Export
market and replacement market (direct/through OEMs). The Company is direct
supplier of auto parts to domestic OEMs.
Opportunities and Threats:
The Company is the joint venture of Maruti Udyog Limited, the giant player of
passenger vehicles in
The Company is using this as an opportunity and with the consistent and
unstinted support of MUL, the Company is constantly adding new business in the
form of new products so as to diversify its product profile such as sheet metal
components, assemblies, axles, fuel neck filler, painting and plating etc.
Further the Company is expanding its facilities to meet the demands of
MUL.
Outlook:
As per advance estimates of CSO, the outlook for Indian external performance
continues to be optimistic. Budget 2006-07 assumes GDP growth of about 7-7.6%
for 2006-07.
Manufacturing sector has bounced back removing worries about sustenance of
industrial buoyancy. However, the slow performance of infrastructure sectors
and high oil prices are critical risks. Continued good performance of capital
goods and machinery and equipment, which reflect the investment scenario,
indicates the sustenance of the growth momentum witnessed in the last 2-3
years.
In the near-term, expectations of rising US interest rates along with further
weakness in Asian currencies could result in increased dollar demand in the
offshore market exerting downward pressure on the rupee. However, the rupee is
expected to draw support from the growing foreign investment in the Indian
market.
In 2006-07 growth of Automobile Sector will generate even more demand for auto
components players. Auto component manufacturers will cater not only to
domestic players but also to Overseas Giants. Exports of auto components from
Performance Analysis:
Financial Performance:
The Company manufactures sheet metal components, assemblies &
sub-assemblies, exhaust systems, fuel neck, axles etc. and supplies primarily
to MUL. The Company closed the fiscal 2005-06 with a positive note. In the
concluded financial year, it has achieved gross sales of Rs. 5110 million as
compared to Rs.4914 million in previous year, a growth of 4% in line with the
growth of its main customer, MUL. Further Company's important parameters
behaved in the following manner:
* Though Net
Operational
Analysis:
In the quest of excellence for quality, Company is working continuously for
Improvement in all operational areas.
The Company is continuously undertaking project for product development/
improvement for existing as well as new products with the help of in-house
resources as well as technical assistance from foreign parties. Further BIW
assemblies and fuel neck filler for new models of MUL were developed in-house
to the body accuracy level. Further rear axle of new Model of MUL is under
development with Robotic technology considering the higher quality levels and
better productivity. Beside this, the BIW assemblies, Fuel neck filler &
rear axle assemblies are developed with improved accuracy levels of quality
& technology for new models of MUL.
The Company has hired the services of a Japanese consultant, Mijota San for TPM
improvement techniques and an external faculty Mr. A Shukla was also appointed
for guidance on KAIZEN. As a result of this, new KAIZEN ideas were invented and
are being implemented by JBM employees.
MUL has conferred the Vendor Performance Award for 'Alto Cost Reduction' and
for 'Yield Improvement' for the year 2004-05 to the Company.
Apart from the above, the Company has also -received 'Commendation for
Significant Achievement' award from CII - EXIM Bank for 2005.
Environment, Health & Safety
(EHS):
The Company is already certified to ISO 14001:2004 (Environmental Management
System), OHSAS 18001:1999 (Occupational Health and Safety Assessment Series)
and ISO/TS 16949:2002 (Quality Management System). The Company has integrated
all these three systems in its operations, called as 'Integrated Management
System (IMS)'. Company undertook various activities concerning EHS and the
followings are to name a few:
* Thirty operational control procedures are established and implemented to
reduce the environmental impacts of its activities on environment and risks to
employees.
* Roof top wind ventilators and exhaust ducts are provided in the shop floor to
improve the indoor air quality.
* Similarly the wet scrubber is provided in electroplating plant to improve the
quality of air at work place and to reduce the impact of emission on
environment.
* Further to reduce the impacts of its activities company has installed a fully
automatic effluent treatment plant for CED paint shop.
* Installed RO system at Plant-II to improve the quality of drinking
water.
* General health check-up camps, indoor/out-door games/activities, yoga camps
and training on water harvesting were organized during the year for the
employees.
Segment wise/Product wise
Performance:
The Company is engaged in the business of auto components for automobiles.
Since, this is only one segment; hence there is no segment wise
reporting.
Risk & Concerns:
Risk
is an integral and inherited part of any business in different form. It is an
expression of uncertainty about events and their possible outcomes that could
have a material impact on the aim of the Company. Since no business is
risk-free, in the business course, the Company is exposed to following risks,
as perceived by the Management:
* The Company is engaged into the manufacturing of automotive components and
the performance of auto component industry is largely dependent on the
performance of automobile industry especially Company's Customers. The
automobile industry itself is dependent on several factors such as economy's
growth, monsoon, number of players, interest rates, market practices and
pricing etc. Further auto component industry is very capital intensive. Such
investments necessitate a certain size of operations to generate viable
profits.
Today Company is highly dependent on its single major customer i.e. MUL. The
performance of the Company is mainly attributable to performance of MUL.
Company is also actively exploring all new business opportunities in terms of
addition of new products for existing and new customers. The Company's sales
and margins are subject to the market forces that affect MUL and other
customers from time to time.
* The Company has agreements with OEMs for supply of components. Terms of
agreements include quantity, quality, price, delivery, warranty etc. The
management has taken conscious steps to restrict liabilities under the contract
and covering the risk involved. Presently the Company has no pending litigation
in any court on these accounts.
* The Company is exposed to foreign currency rate fluctuations on account of
imports and foreign currency borrowings. The Company is taking up appropriate
steps by using derivatives viz. options, forward cover etc. at appropriate time
to mitigate foreign exchange risks.
* The government policies on automotive industry, duties and policies on
import/export of raw materials, signing of trade agreements with other countries
offers both opportunities and threats. Opportunities in the form of economical
raw material, trade activities, export of products etc. and threats in the form
of direct import of components by customers etc. The Company is continuously
working on various cost reduction areas viz. VA/VE, process improvements,
quality up-gradations, material yield improvement etc. so as to remain
competitive and to mitigate these risks.
Fixed Assets
- Land
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Office Equipments
- Electronic
Data Processing Equipments
- Vehicles
As per website
Bharat Maruti Limited (JBML), a Public limited
company, was incorporated in 1987 as a Joint Venture with Maruti Udyog Limited (MUL).
Keeping pace with the steep rise in demand and quality of passenger cars and
the fierce competition from the entry of international auto majors in the
country, JBML had to continually expand its manufacturing capacity and
capability. The capacity, therefore, was expanded in 1991-92 and in 1993-94. A
new plant was set up in 1995-96. The capacities were further expanded in
1996-97, 2001-02 and 2002-03.
The world-class manufacturing capabilities include imported and indigenous
press lines, robotic welding lines as well as plating and painting facilities.
JBML added capabilities to produce exhaust systems,
axles and fuel neck fillers to the existing capabilities of sheet metal
components and welded modules. With several awards to its credit and support of
its partners the company stands posed atop a launch pad to the future fully
geared to meet new challenges and is destined to touch new heights in
excellence.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.47 |
|
|
1 |
Rs.80.08 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
59 |
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 |
|