MIRA INFORM REPORT

 

 

Report Date :

13.07.2007

 

IDENTIFICATION DETAILS

 

Name :

CORRARO INDIA LIMITED

 

 

Registered Office :

N-6, Pratap Building, Connaught Circus, New Delhi-110001

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

11.04.1997

 

 

Com. Reg. No.:

55-86623

 

 

CIN No.:

[Company Identification No.]

U52609DL1997PLC086623

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELC04084D

 

 

PAN No.:

[Permanent Account No.]

AAACC5292M

 

 

Legal Form :

It is a Closely Held Public Limited Liability Company.

 

 

Line of Business :

Manufacturers of Tractor Backends for John Deer, Renault and Tractors.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1500000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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. Company’s profitability is improving and is expected to wipe-off accumulated losses soon.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

N-6, Pratap Building, Connaught Circus, New Delhi-110001, India

E-Mail :

sophia_menezes@carraro.com

 

 

Head Office :

18/4, Mathura Road, Faridabad - 121 002

Tel. No.:

91-129-528 4911

Fax No.:

91-129-528 5159/ 91-129-528 4839

 

 

Corporate Office :

A/36, Mohan Co-op. Industrial Estate, Mathura Road, New Delhi - 110 044.

Tel. No.:

91-2138-32101-104

Fax No.:

91-2138-32136

 

 

Factory 1 :

B 2/2 MIDC, Nagar Road, Ranjangaon - 412 210, Maharashtra, India

Tel. No.:

91-2138-32101-104

Fax No.:

91-2138-32136

 

 

Factory 2 :

No.2, Gera Serenity, Galaxy Gardens, Koregaon Park, Pune-411001, Maharashtra, India

Tel. No.:

91-20-604428

Fax No.:

91-20-604427

 

 

DIRECTORS

 

Name :

Mr. Rajan Nanda

Designation :

Chairman

Address :

2, Friends Colony, New Delhi - 110 065

Date of Birth/Age :

15.10.1942

Date of Appointment :

11.04.1997

 

 

Name :

Mr. Guido Ghilardi

Designation :

Director

Address :

Via G Marconi 42, 35100, Padova, Italy

Date of Birth/Age :

16.11.1957

Date of Appointment :

19.07.1999

Date of Ceasing :

29.09.2003

 

 

Name :

Mr. Gabriele Del Torchio

Designation :

Director

Address :

Via Barbarigo 70, Padova, Italy

Date of Birth/Age :

05.02.1951

Date of Appointment :

22.09.2003

 

 

Name :

Mr. Rakesh Chopra

Designation :

Director

Address :

C-204, Sarvodaya Enclave, New Delhi

Date of Birth/Age :

17.10.1950

Date of Appointment :

06.06.1997

 

 

Name :

Mr. Mario Carraro

Designation :

Director

Address :

Via Delle Palma, 8, 35100, Padova, Italy

Date of Birth/Age :

29.10.1929

Date of Appointment :

06.06.1997

 

 

Name :

Mr. Nikhil Nanda

Designation :

Director

Address :

12, Jor Bagh, New Delhi-110003

Date of Birth/Age :

18.03.1974

Date of Appointment :

06.06.1997

 

 

Name :

Ms. Tiziana Votta

Designation :

Director

Address :

Via P Canal, 34, 35100, Padova, Italy

Date of Birth/Age :

18.01.1954

Date of Appointment :

06.06.1997

 

 

Name :

Mr. Enricho Gomirro

Designation :

Director

Address :

Via E Scrovegni 7, 35137, Padova, Italy

Date of Birth/Age :

27.10.1958

Date of Appointment :

06.06.1997

 

 

Name :

Mr. Shobhan Thakore

Designation :

Director

 

 

Name :

Mr. Luigino I Ricetto

Designation :

Additional Director

Address :

Via Filanda Vecchia 7A, 33097, Splimbergo, IT

Date of Birth/Age :

18.04.1952

Date of Appointment :

15.11.2006

Other Directorships :

Carraro Technologies India Private Limited

 

 

Name :

Mr. Jagdish Joshi

Designation :

Alternate Director

Address :

171, Neelamber, 17th Floor, 37, G Deshmukh Marg, Mumbai-400026, Maharashtra

 

 

KEY EXECUTIVES

 

Name :

Mr. Kaushik Haldar

Designation :

Head -  Technology

Address :

B-2/2, MIDC, Ranjangaon, Pune-412210, Maharashtra

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Escorts Limited

19599990

Carraro Spa

20400000

Escorts Limited and Mathur B G

02

Escorts Limited and Lalit Jain

02

Escorts Limited and Vinod Dixit

02

Escorts Limited and Sonia N Das

02

Escorts Limited and Rachna Nagpal

02

 

As on 31.03.2006

 

Names of Shareholders

 

Percentage of Holding

Foreign holdings

 

51.00

Bodies corporate

 

49.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Tractor Backends for John Deer, Renault and Tractors.

 

 

Products :

Tractor Transmission Components

Trumpets

Castings

Machine Tools

 

ITC Code

Product Description

870850

Drive-axles with differential

870840

Gear boxes

870839

Others

 

PRODUCTION STATUS

 

Particulars

 

 

Installed Capacity

Actual Production

Transmission

 

 

14400

9691

Castings

 

 

--

436

Axles

 

 

15000

6017

Trumpets

 

 

15000

8260

PTO Assembly

 

 

--

1690

 

 

GENERAL INFORMATION

 

Suppliers :

v      Shitole Engineering Private Limited

v      Accurate Engineering Company Private Limited

v      Jekuma Tools and Gauges (Private) Limited

v      Param Industries

v      Vijay Engineering Works

v      BUI Private Limited

v      Gaurav Engineers

v      Gole Precision Tools Private Limited

v      Saras Plastics Private Limited

v      Jemco Rubber Industries

v      Goldy Press Tools

v      Seven Star Engineering Private Limited

v      Spacerall

v      Dhananjay Industries

v      Industrial and Farm Equipment Company

v      Marvelous Metals Private Limited

v      Shree Polymers

v      Hi Techno Machines

v      Radheya Machining Limited

v      Tork Rubber Industry

v      Print Grafic Systems

No. of Employees :

 

 

 

Bankers :

1.          Export Import Bank of India, Centre One, World Trade Centre, Cuffe Parade, Mumbai  - 400 005.

2.          ABN Amro Bank NV, 327 M. G. Road, Pune Camp, Pune 411 001.

 

 

Financial Institutions :

MCC S.p.A

51, Via Piemonte, 00187, Rome, Italy

Tax code – 00594040586

VAT No. 00915101000

 

 

Facilities :

Secured Loans (As on 31.03.2004) :

(Rs. In millions)

Term loan from financial institutions

 

Mediocredito Centreale Spa, Italy

203.052

Export Import Bank of India

60.000

Loans from Banks

 

Short Term Loan

172.700

Interest accrued and due

0.022

Total

435.774

 

Unsecured Loans :

 

Loans from Banks

 

Export Bills Discounted

149.000

Interest accrued and due

0.163

Total

149.163

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

S R Batliboi & Company

Chartered Accountants

Address :

The Metropole, F-1, 1st Floor, Bund Garden Road, Pune-411001, Maharashtra

 

 

Parent Company :

Carrarro, Italy

 

Escorts Limited, Faridabad - (Escort Group of Companies)

 

 

Associates/Subsidiaries :

v      Escorts Limited

v      Carraro Spa, Italy

v      Escorts Limited and Mathur B G

v      Carraro Technologies India Private Limited

v      Carraro PNH Components (India) Private Limited

v      Turbo Gears India Private Limited

v      Siap Spa, Italy

v      Carraro North America

v      Meccanica Del Piave (MDP) Spa, Italy

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

40000000

Equity Shares

Rs.10/- each

Rs.400.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

40000000

Equity Shares

Rs.10/- each

Rs.400.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

400.000

400.000

400.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

8.023

0.000

4] (Accumulated Losses)

(23.338)

(71.172)

(126.638)

NETWORTH

376.662

336.851

273.362

LOAN FUNDS

 

 

 

1] Secured Loans

344.944

340.923

435.774

2] Unsecured Loans

295.300

158.651

149.163

TOTAL BORROWING

640.244

499.574

584.937

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1016.906

836.425

858.299

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

561.078

589.145

630.566

Capital work-in-progress

0.769

21.670

0.000

 

 

 

 

INVESTMENT

70.000

30.000

30.000

DEFERREX TAX ASSETS

10.479

33.885

35.657

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
314.972

256.538

149.108

 

Sundry Debtors
518.847

559.295

337.339

 

Cash & Bank Balances
93.373

16.606

60.316

 

Other Current Assets
1.316

8.023

0.000

 

Loans & Advances
189.626

134.996

100.216

Total Current Assets
1118.134

975.458

646.979

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
715.662

799.034

482.167

 

Provisions
27.892

14.699

2.736

Total Current Liabilities
743.554

813.733

484.903

Net Current Assets
374.580

161.725

162.076

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1016.906

836.425

858.299

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

1676.760

1584.945

973.449

Other Income

53.401

13.574

5.834

Total Income

1730.161

1598.519

973.283

 

 

 

 

Profit/(Loss) Before Tax

72.951

57.450

24.719

Provision for Taxation

0.000

0.000

4.410

Profit/(Loss) After Tax

72.951

57.450

20.309

 

 

 

 

Total Earnings

362.916

308.449

NA

 

 

 

 

Imports :

 

 

 

 

Raw Materials

75.826

57.957

NA

 

Capital Goods

0.745

6.305

NA

Total Imports

76.571

64.262

NA

 

 

 

 

Expenditures :

 

 

 

 

Administrative Expenses

NA

NA

100.819

 

Raw Material Consumed

1300.354

1172.369

699.472

 

Salaries, Wages, Bonus, etc.

44.945

35.006

27.441

 

Payment to Auditors

1.763

1.670

NA

 

Interest

44.839

42.178

52.076

 

Insurance Expenses

3.405

3.302

NA

 

Power & Fuel

11.990

10.892

NA

 

Depreciation & Amortization

73.231

75.151

74.755

 

Other Expenditure

176.683

192.605

NA

Total Expenditure

1657.210

1541.069

954.564

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
4.22

3.59

2.09

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.22

3.59

2.09

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.34

3.67

1.93

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.19

0.17

0.09

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.67

3.90

3.91

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.50

1.20

1.33

 

 

LOCAL AGENCY FURTHER INFORMATION

 

INDUSTRY

 

The much-talked about decline in growth sector is the outcome of a combination of factors affecting industry competitiveness and end user industry growth. The inverted duty structure (raw materials such as steel plates are at 30% while finished products are at 20% customs duty) alongwith special custom duty status for project impars in major end use sectors such as oil refining and fertiliser have hit the industry hard. Part of the problems is also due to the inability to offer financing options to the end use sectors.

 

The investments planned in the ninth plan for oil refining and fertiliser sectors are Rs.50-60 and Rs.10-15 billions respectively.  If the domestic industry is not made competitive, there is a good chance that their order book position will wersen and imports would increase. Key end use sectors such as process industry, textiles and cement are witnessing sluggish growth and threat of imports.

 

Poor investments in power transmission and distribution sectors have resulted in the poor performance of transformer manufacturers. The fortunes of engineering industry other than capital goods has been hit by the recent decline in the growth of the automobile sector, a major end use segments of bearings and machine tools. The machine tool and bearings sectors are also witnessing significant import threats.

 

BUSINESS

 

The company is engaged in manufacturing of Hydraulic lifts and clutches for Agriculture tractors and planetary drive axles and Mechanical transmissions under Collaboration with Carraro S.P.A. via Olmo 37-35011, Campodarsego (Padova) Italy.

 

The company commenced production last year and its first financials having performance details are awaited.

 

The company operates from its captioned owned office.  The company, also owns factory at Faridabad.

 

The company has taken loan from:

 

Export-Import Bank of India, Rs. 200 millions on 12th July, 2000

ABN Amro, Rs. 180 millions against Machinery and Factory etc.,

 

Loan taken through Agent - Mediocredito Centrale, Italy.

 

No Balance Sheet is finalised so far.

 

Factory is under completion. 

 

No details regarding employing of staffs are known.

 

 

The situation of the registered office of the company was changed from :

A-36, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi-110044

 

To :

N-6, Pratap Building, Connaught Circus, New Delhi-110001 with effect from 21.07.2004.

 

Fixed Assets :

 

v      Leasehold land

v      Buildings

v      Plant and machinery

v      Furniture and fixtures

v      Office equipments

v      Computers

v      Vehicles

v      Loose tools

v      Computer software

 

 

Form 8 Particular for creation or modification of charges 

 

Name of the company

CARRARO INDIA LIMITED

Presented By

Gargi Taparia

1) Date and description of instrument creating the change

Unattested deed of hypothecation dated 08.09.2005 executed by Carraro India Limited (therein and hereinafter referred to as the borrower) in favour of MCC Spa a bank incorporated in Italy, having its registered office at 51, Via Piemonte, 00187 Rome, Italy, Tax Code 00594040586, VAT No.00915101000, (MCC) (Deed of hypothecation)

2) Amount secured by the charge/amount owing on the securities of charge

Loan of Euro 1934857.15 owing on security of the charge. (Euro One million Nine Hundred and Thirty four Thousand Eight Hundred Fifty Seven and Fifteen Cents only) together with interest, compound interest, additional interest by way of liquidated damages (in case of default), costs, (legal costs on a full indemnity basis), charges, expenses an all other monies payable by the borrower to MCC under the loan agreement dated 08.09.2005 made between the borrower and MCC (Loan agreement)

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the borrower’s movable fixed assets, both present and future, briefly described in Schedule III to the deed of hypothecation, including its moveable plant and machinery, equipment, appliances, furniture, vehicles, machinery spares and stores, tools and accessories, whether or not installed.

4) Gist of the terms and conditions and extent and operation of the charge.

The charge created by the aforesaid deed of hypothecation shall operate as a continuing security by way of first charge for the due repayment by the borrower to MCC of the loan Euro 1934857.15 together with payment of interest, compound interest, additional interest by way of liquidated damages (in case of default), costs (legal costs on a full indemnity basis), charges, expenses and all other monies payable by the borrower to MCC in terms of the said loan agreement.

 

The said charge shall rank in the order of priority set out in Schedule IV to the deed oif hypothecation

5) Name and Address and description of the person entitled to the charge.

MCC S.p.A

51, Via Piemonte, 00187, Rome, Italy

Tax code – 00594040586

VAT No. 00915101000

6) Date  and brief description of instrument modifying the charge

No document was executed. The joint mortgage of borrower’s lands and other immovable properties situated at Plot No.B-2/2, Ranjangaon, Shirur Growth Centre, Village Ranjangaon, Taluk Shirur, District Pune in the state of Maharashtra was extended on 15.07.2006 with an intent to create security on the said lands and buildings and structures thereon, fixed plant and machinery, fixtures and fittings, permanently fastened to the earth or fastened to anything attached to the earth.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The due repayment of aforesaid loan of Euro Loan of Euro 1934857.15 together with payment of interest, compound interest additional interest by way of liquidated damages (in case of default), costs (legal costs on a full indemnity basis), charges, expenses and all other monies payable by the borrower to MCC in terms of the said loan agreement is now also secured by extension of joint mortgage created by the borrower on 15.02.2006 in favour of MCC

 

The charge in favour of MCC under the aforesaid Deed of hypothecation and joint mortgage, over the said immovable properties shall rank pari passu with Exim Bank for its Rs.200.000 millions cash term loan.

 

Corporation identity number or foreign company registrations number of the company 

U52609DL1997PLC086623

Name of the company

CORRARO INDIA LIMITED

Address

N-6, Pratap Building, Connaught Circus, New Delhi-110001, India

This Form is for

Modification of charge

Type of Charges

Immovable property

Particular of the charge holder 

Export Import Bank of India

Centre One Building, Floor 21, World Trade Crntre Complex, Cuffe Parade, Mumbai-400005, Maharashtra

Nature or description of the instrument creating charge  

No instrument was executed. A mortgage by deposit of title deeds by way of constructive delivery was created by Carraro India Limited (the Borrower) on 16.03.2007, interalia in favour of Export Import Bank of India

Date of the instrument creating charge

16.03.2007

Amount Secure by the charge

Rs.100.000 millions

Brief of the principal terms and conditions and extent and operation of the charge

Rate of interest :

PLR minus 1% p.a. subject to a minimum of 10.50% p.a. payable with monthly rest on 20th of each month.

 

Terms of repayment

Seventeen substantially equal quarterly installments, commencing on the expiry of a period of one year from the date of first disbursement or such  other date closer to that date as may be advised by exim Bank at the time of making the first disbursement.

 

Margin

Nil

 

Extent and operation of the charge

The charge created by the aforesaid mortgage shall operate as continuing security and shall rank as pari passu first charge over the borrower’s immovable properties

Modification charge

Charge identification number of the charge to be modified

10034547

Particulars of the Property charged  

All that piece and parcel of leasehold lands situate in Plot No.B-2/2, Ranjangaon (Shirur) Growth Centere, Vilage Ranjangaon, Taluk Shirur, District Pune, in the state of Maharashtra, together with buildings and structures theron and all plant and machineries attached to the earth or permanently fastened to anything attached to the earth.

Particulars of the present modification

The due repayment of the Rupee loan together with interest and all other monies payable by the borrower to Exim Bank under the loan agreement dated 19.12.2007 as modified by Exim Bank’s sanction letter dated 20.02.2007 and accepted by the borrower vide its letter dated 22.02.2007 which are secured by the charge created under the deed of hypothecation dated 19.12.2006 mentioned, are now also secured by the said mortgage created by the borrower on 16.03.2007.

 

News Release

 

19/7/1999 CARRARO GROUP: With the opening of the plant, Carraro India starts production.

 

Output of 18,000 transmissions at capacity, generating turnover in excess of L80bn.


With the opening of the plant today in the presence of Mario Carraro, Chairman, Carraro Group, and Rajan Nanda, Chairman, Carraro India Ltd., Carraro India has officially started production of transmission systems for agricultural applications. The new plant at Pune (150 km south-east of Bombay) will become the main hub for the production of transmissions for tractors up to 90 HP.


Carraro India, 51%-owned by Carraro S.p.A., was established in March 1997 as a joint venture with Escorts Ltd., one of India's biggest industrial groups and the leading maker of tractors for the Indian market.


The facility at Pune will have a workforce of 250 employees, all of them local, and an output at capacity of 18,000 tractor transmissions per year, generating a total turnover in excess of L80bn.In 2000 Carraro India expects to produce 6,000 transmissions both for export to Europe and for the local market. Carraro India's first customer will be Escorts Ltd., but the aim is to export 50% of output to Europe, thereby capitalising on all the benefits of a product made at competitive manufacturing costs.


India, with an annual output of over 200,000 tractors, is one of the world's biggest markets and boasts extremely attractive growth potential, estimated at 8% p.a. for the next 5-10 years. The creation of a production facility in India is a strategic move by Carraro which will enable the group to penetrate the Indian market and relocate tractor transmission production to a region with strong growth potential, low labour costs and lower tax pressure.


"Carraro India," stated Mario Carraro, Group Chairman, "has a key role to play in the Group's international development strategies, since it actually taps directly into a highly promising market and also opens the way for entry to other regions of the Far East."


"They estimate that the contribution of Carraro India," concluded Mario Carraro, "will be crucial to achieving the growth targets they have set".


Carraro, listed on the Italian stock market, is a multinational company and a world leader in automotive systems, with a 21% share of the differential axles market for off-highway applications; it is also the world's leading manufacturer of torque converters for industrial machinery with a market share of 14%. Carraro is also a player in the on-highway sector, making axles for commercial vehicles and cam phasers for car engines.


The Group has manufacturing facilities in Italy, India, Poland, Argentina, Korea and the United States, as well as commercial operations in Japan, Turkey and the United States. In 1998 it recorded consolidated turnover of over L600bn and posted a net profit of L32.5bn.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.40.36

UK Pound

1

Rs.82.23

Euro

1

Rs.55.65

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

 

51

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions