MIRA
INFORM REPORT
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Report Date : |
27-07-2007 |
IDENTIFICATION DETAILS
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Name : |
PENTAMEDIA GRAPHICS LIMITED |
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Formerly Known As : |
PENTAFOUR SOFTWARE AND EXPORTS LIMITED |
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Registered Office : |
‘Taurs’ No. 25, 1st First
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Country : |
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Financials (as on) : |
31-03-2007 |
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Date of Incorporation : |
05-05-1976 |
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Com. Reg. No.: |
18-007142 |
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CIN No.: [Company
Identification No.] |
U74210TN1976PLC007142 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEP00266A |
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PAN No.: [Permanent
Account No.] |
AAACP1647B |
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Legal Form : |
It is a public limited liability company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
The company is one of the entertainment graphic majors, catering to the animation and special effects industry worldwide. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
USD 7800000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track. Company’s
profitability is under severe pressure. Payments are reported as slow but
correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office : |
‘Taurs’ No. 25, 1st
First |
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Tel. No.: |
91-44-24833067 / 24803898 |
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Mobile No.: |
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Fax No.: |
91-44-24726042 |
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E-Mail : |
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Website : |
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Overseas Offices : |
Located at |
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Regional Offices : |
Located at |
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Development Centre Studio |
Ř Software Development Park & Multimedia Center, 1/162, IT Super Highway (Old Mahabalipuram Road), Thaiyur Sengammal Village, Kelambakkam, Kacheepuram District – 603 103, Tamilnadu, India. Ř
"Taurus", No. 25, First |
DIRECTORS
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Name : |
Dr. V. Chandrasekaran |
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Designation : |
Chairman & Chief Executive Officer |
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Date of Birth/Age : |
3rd May, 1951 |
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Qualification : |
M.E.,M.I.E.,CE |
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Experience : |
26 years |
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Date of Appointment : |
January 1992 |
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Name : |
Mr. S. Ranganathan |
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Designation : |
Director |
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Name : |
Dr. S. Ramani |
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Designation : |
Director |
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Name : |
Mr. T. V. Krishnamurthy |
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Designation : |
Director |
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Name : |
Ms. Usha Ganesarajah |
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Designation : |
Director |
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Name : |
Mr. G. Venkatesh Babu |
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Designation : |
Director & COO |
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Name : |
Mr. K. Shrinivasan |
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Designation : |
Director & Coo |
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Address : |
2nd september, 1952 |
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Date of Birth/Age : |
B.E.(Mech) |
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Qualification : |
28 years |
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Experience : |
April 1996 |
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Date of Appointment : |
Deutsche Babcock Balke - Durr Limited , Dy. GM – Projects |
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Name : |
Mr. Srikantha Rao |
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Designation : |
Vice President - Technical |
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Address : |
1st January, 1949 |
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Date of Birth/Age : |
B.Sc(ED), M.Sc, P.hd |
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Qualification : |
22 years |
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Name : |
Mr. S. D. Viswanathan |
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Designation : |
Dirator |
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Name : |
Sumathi Sridharan |
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Designation : |
Additional Director |
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Name : |
R. Balaji |
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Designation : |
Additional Director |
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KEY EXECUTIVES
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Name : |
G. Swaminathan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Foreign Institutional Investors |
2021904 |
2.70 |
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NRIs/OCBs |
1692052 |
2.26 |
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Global Depository Receipt |
11824756 |
15.78 |
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Financial Institutes/ Mutual Funds |
1644343 |
2.20 |
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Bodies Corporate |
14808444 |
1976 |
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Public |
42966797 |
57.32 |
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TOTAL |
74958296 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The company is one of the entertainment graphic majors, catering to the animation and special effects industry worldwide. |
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Exports : |
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Countries : |
Europe, |
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GENERAL INFORMATION
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Customer : |
Ř
Ř
Silicon Ř
Ř
Studio Ř
Studio Ř
Media Corporation, |
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No. of Employees : |
Around 1000 |
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Bankers : |
Ř
Bank of Ř
Global Trust Bank Limited, Chennai, Ř
UTI Bank Limited, Chennai, Ř
The Hongkong & Shanghai Banking
Corporation Limited, Chennai, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Viswanathan Chartered Accountant |
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Address : |
Chennai, |
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Memberships : |
Confederation of Indian Industry |
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Associates : |
Ř Pentafour Products Limited Ř Pentafour Solec Technology Limited Ř Pentafour Finance Limited Ř Pentafour Communications Limited |
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Subsidiaries : |
Ř
Num TV Limited, Ř
Pentamedia Corporation, Ř
Animasia International Pte. Limited, Ř
Improvision Corporation, Ř Mayajaal Entertainment Private Limited Ř Media Dreams Limited Ř Kris Srikkanth Sports Entertainment Private Limited Ř Intelivision Limited |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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75000000 |
Equity shares |
Rs.10/-Each |
Rs. 750.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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74960000 |
Equity Shares |
Rs.10/-Each |
Rs.749.600
millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
249.800 |
249.800 |
249.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1713.100 |
1701.500 |
1661.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1962.900 |
1951.300 |
1911.200 |
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LOAN FUNDS |
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1] Secured Loans |
1548.100 |
1653.100 |
1690.000 |
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2] Unsecured Loans |
228.000 |
228.000 |
228.400 |
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TOTAL BORROWING |
1776.100 |
1881.100 |
1918.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3739.000 |
3832.400 |
3829.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
428.400 |
456.400 |
564.200 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
2253.800 |
2253.800 |
2253.800 |
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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 |
179.500
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185.800 |
151.700 |
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Sundry Debtors |
277.100
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281.100 |
43.100 |
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Cash & Bank Balances |
21.600
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29.900 |
48.900 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
1117.800
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1172.100 |
1137.100 |
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Total
Current Assets |
1596.000
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1668.900 |
1380.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
324.500
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334.500 |
157.000 |
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Provisions |
214.700
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212.200 |
212.200 |
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Total
Current Liabilities |
539.200
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546.700 |
369.200 |
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Net Current Assets |
1056.800
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1122.200 |
1011.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3739.000 |
3832.400 |
3829.600 |
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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 |
246.900 |
647.400 |
1352.200 |
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Other Income |
5.900 |
2.600 |
76.000 |
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Total Income |
242.800 |
650.000 |
1428.200 |
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Profit/(Loss) Before Tax |
8.200 |
45.100 |
67.800 |
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Provision for Taxation |
(3.400) |
5.000 |
9.900 |
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Profit/(Loss) After Tax |
11.600 |
40.100 |
57.900 |
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Expenditures : |
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Manufacturing Expenses |
114.700 |
323.600 |
618.500 |
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Administrative Expenses |
12.500 |
15.500 |
28.900 |
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Raw Material Consumed |
9.100 |
21.500 |
12.000 |
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Salaries, Wages, Bonus, etc. |
14.100 |
15.600 |
23.900 |
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Interest |
19.600 |
120.300 |
148.300 |
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Power & Fuel |
8.200 |
8.300 |
12.200 |
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Depreciation & Amortization |
55.600 |
108.000 |
323.800 |
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Other Expenditure |
5.400 |
2.600 |
220.800 |
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Total Expenditure |
239.200 |
615.400 |
1388.400 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
31.03.2007 |
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Sales Turnover |
124.300 |
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Other Income |
769.800 |
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Total Income |
894.100 |
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Total
Expenditure |
857.300 |
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Operating Profit |
36.800 |
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Interest |
0.200 |
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Gross Profit |
36.600 |
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Depreciation |
28.100 |
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Tax |
0.200 |
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Reported PAT |
7.200 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt – Equity
Ratio |
0.93 |
0.98 |
0.35 |
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Long Term Debt
Equity Ratio |
0.25 |
0.14 |
0.01 |
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Current Ratio |
0.86 |
0.73 |
1.49 |
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Fixed Assets |
0.12 |
0.32 |
0.36 |
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Inventory |
1.35 |
3.84 |
1.58 |
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Debtors |
0.88 |
3.99 |
1.50 |
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Interest Cover
Ration |
1.42 |
1.37 |
1.74 |
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Operating Profit
Margin (%) |
33.78 |
42.23 |
43.06 |
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Profit Before Interest
And Tax Margin (%) |
11.26 |
25.55 |
19.11 |
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Cash Profit
Margin (%) |
27.22 |
22.88 |
30.90 |
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Adjusted Net
Profit Margin (%) |
4.70 |
6.19 |
6.95 |
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Return On
Capital Employed (%) |
0.73 |
4.32 |
3.22 |
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Return On Net
Worth (%) |
0.59 |
2.08 |
1.59 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.5.00 |
|
Low |
Rs.4.95 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on 15th May, 1991 at Chennai in Tamilnadu under the name and style of Pentafour Software & Exports Limited having Company Registration Number 7142. Subsequently, the name of the company was changed to present.
Subject was originally promoted by Mr. V. Ramakrishna and associates. Later Dr. V. Chandrasekaran, a professional with IT experience, took charge of the operations. The company belongs to the Pentafour Group which has several other companies in diverse businesses.
Subject has been accredited with ISO 9001 and ISO 9002 Certifications.
Subject was incorporated to manufacture and trade consumer durables and electronic items such as air conditioners, UPS, water heaters, stabilisers, etc, and to render consultancy services in project finance and administration. The company has been supplying these products to reputed companies including Spencer & Company to be marketed under their brand name.
During the year 1999-2000, the company hived off its business software segment, including overseas operation as well as products on & off shore projects, transfer of human resources associated with software and brand value. To reflect its business after restructuring, the company decided to change the name from Pentafour Software to Pentamedia Graphic with the approval on 24th January 2000.
The company has expertise in Films/ Broadcasting, Video,
CD/DVD and Internet Entertainment with having all kinds of screen Big Screen
(Theater), Small Screen (Home Video and T.V.) and personal screen (Personal
Computer). The company have entire production facility, business operation
& creation of Multimedia with special effect only in one roof at the
The company has started new project, the New Millennium TV, www.numtv.com in December 1999, another
pioneer efforts of the company, which is first Internet Live Broadcasting TV.
Presently Num TV is targetting NRI in Asia, Europe and
The company have strategic alliance with Thornbrush entertainment, IWERKs, Stan Lee Media, Digital Domain, New Media Venture Partners, SGI Apple, Hewlett Packard and Digital Domains.
During the year 2000, the company received the SEI-CMM level
4 certification. It now plans to go for SEI-CMM level 5 certification. In 2001,
it acquired Media Dreams to increase its presence in media. It acquired
Mayajaal in the themed space and Kris.Srikkanth Sports & Entertainment
(KSSEL) in the sports space. It has also acquired Improvision Corporation,
BUSINESS
The company is one of the entertainment graphic majors, catering to the animation and special effects industry worldwide.
It is the largest Multimedia Company. It has four divisions such as Numtv.com, Projects, R & D and Services. The company has divided its business into 3 Strategic Business Units. The largest of these is the SBU focussing on 2D and 3D animation which contributes more than 60% to the revenues. It also sell multimedia titles on various subjects like education, hobbies and fairy tales. The company is also doing projects for developing multimedia titles for overseas companies.
The product range include the following :
Ř CD ROM, CD I, CD XA Philips Yellow Book Standard
Ř CD Audio Philips Red Book Standard
Ř CD Video Philips White Book Standard
Ř CD ROM Systems For information recording and information distribution, which will provide total solutions on a turnkey basis
business operations
The company's total sales revenue during the year was Rs. 4417.175 millions compared to Rs. 5523.791 millions during previous year, as during the year the billing have been done from the subsidiary companies in respective companies in order to achieve greater efficiencies in billing, factoring and copyright protection for Multimedia products and projects. The turnover has shown a growth of 16% on a consolidated basis. Operating profit during the year was Rs. 779.755 millions (17.65% of total revenues) compared to Rs. 1389.237 millions (25.15% of total revenues).
v
Films
(3DAnimation, Visual Effects)
The company has released yet another full length 3DAnimation
Hybrid feature film ALIBABA during the year in the Indian market. This film was
executed in the studios located at Chennai apart from postproduction at
Few components of the film that has scaled up its place in the field of animation technology are as follows :
Ř Stylized character
Ř Advance motion capture techniques
Ř Photo-realistic environment
Ř Re-purposable/re-usable digital contents
ALIBABA`s music scored has been enhanced by Mr. Pravin Mani. UNIVERSAL Music is marketing the music scores
The company has joined hands with EROS MULTIMEDIA during the year for doing film distribution. Under the title of Penta-Eros Studio, a hi-end post production and graphics facility, to provide services to several media companies including music channels, the advertising fraternity and the serial/ programme producers has been set up.
The film (products) under active production are "The Monkey God" and "Sinbad & Collins". The products like "Guliver`s Travels", "Buddha" and "Legands of the Valiant" are on the co-production front. All these projects/products are expected to be released at appropriate intervals.
v
TV
(2DAnimation, Special Effects)
In the small screen, the company has completed 26 episodes
for 22 minutes each successfully for Vasantham Central of Media Corp
MIPCOM 2001 at
In all company exhibited over 7 features, 4 home video and two 26 episodes TV serials. These were viewed and received by many broadcaster and distribution during MIPCOM JUNIOR and has progressed itself into negotiating mutually beneficial terms of agreement for various markets.
v
Interactive
Multimedia (CD, CBT, Internet)
In the PERSONAL SCREEN segment, www.numtv.com witnessed a slight slump due to
the combination of factors such as
v Feature Focus
The Company's immediate majority concentration is in repositioning strategies towards 3D. home production and Co-production to not only own the product but also aim at the long term pay off for encashing on the digital assets. The company proposes, by conserving cost and preserving cash, to claim back its debt free position and carefully plan for organic and inorganic expansion.
With the advent of digital projectors, digital broadcasting hubs, digital theatres, Hi-definition TV to name a few the company is confident of performing to its potential. Its presence in the various high technology areas is meant to provide quality entertainment at affordable prices for an ever increasing global audience.
The company expanded its business into various segments such as :
Ř Studio Entertainment
Ř Media Entertainment
Ř Web Entertainment
Ř Themed Entertainment
Ř Sports Entertainment
The company's Corporate Office is located in a 32,000 sq.
fts. fully networked office space. Its'
The company hosts 120 Silicon Graphics work stations, 60 Power Macs and 210 Pentium & Pentium Pro work stations. The CD plant complex is spread over an area of 2 acres, with a built-up area of 45,000 sq.fts. The factory building has provisions for clean rooms of class 100 and 10,000. In order to cater to multimedia users on a turnkey basis, the company has already set up a multimedia product & program development center and a post production center as a part of the CD plant.
The company has its offices in
The
following are the Business Partners of the company
Ř Thornbrush Entertainment
Ř IWERKs
Ř Stan Lee Media
Ř Digital Domain
Ř New Media Venture Partners
Ř SGI Apple
Ř Hewlett Packard
Ř Digital Domains
Fixed Assets
- land
- buildings
- plant & machinery
- computers
- digital contents
- furniture & fittings
- vehicles
Bio Data
Pentamedia Graphics Ltd(formerly Pentafour Software &
Exports Ltd) [PGL], promoted by V Ramakrishnan and associates was incorporated
in May'76 to manufacture and trade consumer durables and electronic items such
as air conditioners, UPS, water heaters, stabilisers, etc, and to render
consultancy services in project finance and administration. PGL has been
supplying these products to reputed companies including Spencer & Co to be
marketed under their brand name.
The company hived off its business software segment, including overseas
operation as well as products on & off shore projects, transfer of human
resources associated with software & brand value during the year 1999-2000.
To reflect its business after restructing, the company decides to change the
name from Pentafour software to Pentamedia Graphic with the approval on
24.01.2000.
Pentamedia has expertise in Films/ Broadcasting, Video, CD/DVD &
Internet Entertainment with having all kinds of screen Big Screen (Theater),
Small Screen (Home Video & T.V.) and personal screen (Personal Computer).
PentaMedia having entire production facility, business operation & creation
of Multimedia with special effect has only in one rooft at the
PentaMedia has started new Projet, The New Millennium TV, www.numtv.com
in Dec.'99, another pioneer efforts of the company, which is first Internet
Live Broadcasting TV. Presently Num TV is targetting NRI in
Pentamedia is having strategic alliance with Thornbrush Entertainment, IWERKs,
Stan Lee Media, Digital Domain, New Media Venture Partners, SGI Apple, Hewlett
Packard & Digital Domains.
In 2000-01, the company received the SEI-CMM level 4 certification. It
now plans to go for SEI-CMM level 5 in the year 2001.
In 2001, it acquired Media Dreams to increase its presence in media. It
acquired Mayajaal in the themed space and Kris.Srikkanth Sports &
Entertainment (KSSEL) in the sports space. It has also acquired Improvision
Corporation,
DIRECTOR'S REPORT
The Board of Directors have the pleasure to present the 30th
Annual Report to the shareholders together with the Audited Accounts of the
Company for the financial year ended 31st March 2006.
Status of Composite scheme of amalgamation:
The members at their Extra-Ordinary General meeting held on 03rd May 2004
had approved the Composite scheme of amalgamation/arrangement and compromise
with Messrs. Media Dreams Limited, Kris Srikkanth Sport Entertainment Limited,
Intelivision Limited and Mayajaal Entertainment Limited and their respective
creditors and shareholders. The Scheme was sanctioned by the Hon'ble High Court
of Judicature at
The directors further wish to inform the members that based on the
rejection of listing of securities of MAYAJAAL by BSE, Your company had filed
an application before the Hon'ble Court of Madras challenging the said
rejection. The court after hearing both the parties directed the company to
refer the matter to Securities Appellate Tribunal (SAT). On account of that the
various allotments required to be made by the Company pursuant to the scheme
approved by the Hon'ble High Court of Madras is kept in share capital suspense.
The Company has filed an appeal in the High Court of Madras and also
contemplating to file in Securities Appellate Tribunal (SAT), Mumbai.
Meanwhile the company has obtained the permission from Registrar of
Companies, Chennai for extension of 30th Annual General Meeting till 30.12.2006
to effect the restructuring scheme fully as per the order of High Court of
Madras.
Financial
Performance:
During the year the company made a turnover of Rs.252.800
millions as against Rs.648.600 millions
in the previous year. The Profit before Interest, Depreciation and Taxation for
the year ended 31st March 2006 was Rs.8.33 Crores against the previous year
figure of Rs.27.23 Crores.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Overview:
The financial statements have been prepared in compliance with the
requirements of the Companies Act, 1956. The discussion and analysis of the
Group's financial condition and results of operations are based upon the
Group's Audited Consolidated Financial Statements, which have been prepared in
accordance with the accounting standards pronounced by the
The management of PentaMedia accepts responsibility for the integrity and
objectivity of these financial statements as well as for various estimates and
judgments used therein. In addition to the historical information contained
herein, the following discussion includes forward-looking statements which
involve risks and uncertainties, including, but not limited to, risks inherent
in the Company's growth strategy, dependence on certain clients, dependence on
availability of qualified technical consultants and other factors discussed in
this report.
Industry & Market Overview:
Indian Animation Industry Expected to Reach USD 950 Million by
2009:
The market size of the global animation industry (from the demand
perspective) was estimated at USD 55 billion in 2005. The industry is expected
to witness a CAGR of eight percent and is estimated to be USD 75 billion by
2009. Of the total animation market, approximately 40-45 percent goes towards
the cost of development. Based on this, the global animation market (from the
developers' perspective) was estimated at USD 25 billion in 2005, and is
expected to increase to USD 35 billion by 2009. The size of the Indian
animation market (from the developers' perspective) was estimated at USD 285
million in 2005. It is expected to witness a CAGR of 35 percent from 2005-2009
and increase to USD 950 million by 2009. Currently, activities at the
production stage form a major portion of outsourcing, with post-production
accounting for a small share. The share of post-production activities is
expected to increase in future. The entertainment sector contributes as much as
68 percent of the total Indian animation market (from the developers'
perspective). In entertainment, the share of fully animated movies is expected
to increase significantly, from 15 percent in 2005 to 28 percent by 2009.
Indian Gaming Industry Expected to Reach USD 300 Million by 2009:
Introduction of newer technologies and platforms has facilitated the
growth of the worldwide gaming industry. The global gaming market (from the
demand perspective) was estimated at USD 19 billion in 2005, and is expected to
increase to USD 36 billion by 2009, representing a CAGR of 17 percent for the
period 2005-2009. Developers cost account for around 25-30 percent of revenues.
Therefore, the worldwide gaming market (from the developers' perspective) was
estimated at USD 5.8 billion in 2005 and is expected to increase to USD 11
billion by 2009.The market for gaming development in India was estimated at USD
30 million in 2005. It is expected to witness a CAGR of 78 percent and reach
USD 300 million by 2009. Mobile gaming will dominate the market with its share
in the total Indian gaming market (from the developers' perspective) expected
to increase from 53 percent in 2005 to 68 percent by 2009. Key services
currently outsourced in gaming include production and testing activities. In
animation and as well as in gaming, a number of Indian companies are changing
their business model and are moving from an outsourcing to a co-production
model.
Focus on Developing Talent Pool and Leveraging Cost
Competitiveness:
Cost comparison on animation programme:
Cost of animation production in
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.40.54 |
|
|
1 |
Rs.82.02 |
|
Euro |
1 |
Rs.55.31 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
31 |
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 |
|