MIRA
INFORM REPORT
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Report Date : |
05.06.2007 |
IDENTIFICATION DETAILS
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Name : |
DYNAMATIC TECHNOLOGIES LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
07.03.1973 |
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Com. Reg. No.: |
002308 |
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CIN No.: [Company
Identification No.] |
L85110KA1973PLC002308 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRD01116D |
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Legal Form : |
Public Limited liability company. Company’s shares are listed on stock Exchanges. |
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Line of Business : |
Subject produces highly engineered products for applications in the Automotive
Sector, Defence Sector, Agricultural Equipment Industry and Construction
Equipment Industry. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed 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 / Corporate Office: |
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Tel. No.: |
91-80-28394933 / 34 / 35 |
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Mobile No.: |
91-80-2839 5823 |
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Fax No.: |
91-80-28395823 |
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E-Mail : |
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Website : |
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North Region |
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Branch Office : |
516A and 516B, 5th Floor, |
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Tel. No.: |
91-11-51527861 / 51527862 / 63 |
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Fax No.: |
91-11-51527861 |
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Branch Office : |
704, Sakar III, Opposite High Court, Navjivan Post, Ahmedabad – 380
014, |
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Tel. & Fax No.: |
91-79-27544110 |
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South Region |
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Branch Office : |
No. 16, Wallace Garden, |
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Tel. No.: |
91-44-28332844 / 28332625 |
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Branch Office : |
G – 6, Anna Maria Apartments, Singallur, |
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Branch Office : |
149, Gunrock Enclave, Secunderabad – 500 009, |
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Tel. No.: |
91-40-27818225 |
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Fax No.: |
91-40-27718225 |
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West Region |
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Branch Office : |
G – 5, (Ground Floor), Unique House, Cardinal Gracious Road, Chakala,
Andheri (East), Mumbai – 400 099 |
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Tel. No.: |
91-22-56987370 |
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Fax No.: |
91-22-56987371 |
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Branch Office : |
Flat No. 02, Ground Floor, Ishaan Apartment, Opposite Ganesh Dhyan
Mandir, Sriram Housing Society, Warje, Pune – 411 058 |
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Tel. No.: |
91-20-25233673 |
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East Region |
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Branch Office : |
79 / 7 – B, |
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Tel. No.: |
91-33-2448485 |
DIRECTORS
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Name : |
Mr. J K Malhotra |
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Designation : |
Chairman |
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Name : |
Mr. Vijal Kapur |
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Designation : |
Director |
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Name : |
Dr. K Aprameyan |
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Designation : |
Director |
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Name : |
Air Chief Marshal (Retd.)Mr. S Krishnaswamy |
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Designation : |
Director |
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Name : |
Mr. N R Mohanty |
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Designation : |
Director |
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Name : |
Mr. B Seshnath |
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Designation : |
Director / Company executive |
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Name : |
Mr. N Rajagopal |
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Designation : |
Executive Director |
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Name : |
Mr. Udayant Malhotra |
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Designation : |
Managing Director / Chief Executive Officer |
KEY EXECUTIVES
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Name : |
Mr. V Sunder |
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Designation : |
Company Executive / President and Group Chief Financial Officer |
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Name : |
Ms. G. Haritha |
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Designation : |
Company Secretary |
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Tel. No.: |
91-80-28394933 / 28394934 |
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Fax No.: |
91-80-28395823 |
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E mail: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters
Holding |
4938 |
0.12 |
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Indian Promoters |
100 |
0.00 |
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Barota Malhotra |
100 |
0.00 |
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Christine Hoden (I) Private Limited |
803135 |
19.15 |
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J K Malhotra |
414769 |
9.90 |
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JKM Holdings Private Limited |
100 |
0.00 |
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JKM Offshore India Private Limited |
1050854 |
25.05 |
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Primella Sanitary Products Private Limited |
3333 |
0.09 |
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Udayant Malhotra and Company Private Limited |
100 |
0.00 |
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Vita Private Limited |
100 |
0.00 |
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Wavell Investments Private Limited |
119790 |
2.86 |
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Total (a) |
2397319 |
57.17 |
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Non- Promoters
Holding |
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Institutional Investors |
0 |
0.00 |
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Mutual Funds |
41231 |
0.98 |
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Banks, Financial Institutions |
392 |
0.01 |
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Insurance Companies |
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Foreign Institutional Investors |
363454 |
8.67 |
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Total (b) |
405087 |
9.66 |
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Others |
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Private Corporate Bodies |
187027 |
4.46 |
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Indian Public |
1176184 |
28.05 |
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NRIs / OCBs |
24119 |
0.57 |
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Trust |
3824 |
0.09 |
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Total (c ) |
1391154 |
33.17 |
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Grand Total (a+
b + c ) |
4193560 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject produces highly engineered products for applications in the
Automotive Sector, Defence Sector, Agricultural Equipment Industry and
Construction Equipment Industry. |
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Products : |
Item Code No. 8413.19 8479.10 8481.80 |
Product
Description Hydraulic Gear Pumps Power pack Pump Unit Valves |
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Exports to: |
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Imports from: |
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GENERAL INFORMATION
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No. of Employees : |
538 |
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Bankers : |
v
Kotak Mahindra Bank v
UTI Bank v
v
Standard Chartered Bank |
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Facilities : |
SECURED LOANS Term Loans: Kotak Mahindra Bank
Ltd (Note 1 below) [Repayable
within one year Rs. 22,254,449 (2005: Rs. 11,670,019)] UTI Bank Ltd
(Note 1 below) [Repayable
within one year Rs. 22,769,492 (2005: Rs. 22,884,035)] Punjab National
Bank (Note 1 below) [Repayable within
one year Rs. 18,434,805 (2005: Rs. 9,246,772)] ICICI Bank (Note
1 below) [Repayable
within one year Rs. 22,648,928 (2005: Rs. 24,020,680)] Infrastructure
Leasing and Financial Services (Note 3 below) [Repayable
within one year Rs. 21,250,000 (2005: Rs. 15,937,500)] GE Capital
Services [Repayable
within one year Rs. 4,220,004 (2005: Rs. 4,220,004)] Foreign Currency
Non-Repatriable Loan [FCNR(B)] from HDFC Bank Interest Accrued and Due Cash Credit and
Working Capital Loans: From Banks (Note
2 below) Vehicle Loans: (Note 4 below) From Banks From Financial
Institutions |
Rs. in Millions 72.197 57.662 51.552 35.955 69.063 14.770 0.000 238.122 9.796 0.140 |
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Notes: 1. Secured by first
charge on Fixed Assets and second charge on Current Assets of Dynamatic
Technologies Limited and JKM Dae Rim Automotive Limited, both present and
future. The charges are ranking Pan passu. 2. Secured by
first charge on inventories of Raw Materials, Components, Stores,
Work-in-progress, Finished Goods, Book Debts and second Charge on Fixed
Assets of Dynamatic Technologies Limited and JKM Dae Rim Automotive Limited. 3. Secured by
charge on specified movable assets of JKM Dae Rim Automotive Limited. 4. Secured by
way of Hypothecation of Vehicles of Dynamatic Technologies Limited and JKM
Dae Rim Automotive Limited. |
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UNSECURED LOANS Short Term
Loans: Standard
Chartered Bank Punjab National
Bank ICICI Bank Loan from a
Director Inter Corporate Deposits Public Deposits [Repayable
within one year Rs. 6,536,500 (2005: Rs. 4,519,000)] |
Rs. in Millions 0.000 10.000 0.000 0.800 10.050 16.016 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Associates/Subsidiaries : |
v
JKM Dae Rim Automotive Limited v
JKM Research Farm Limited v
JKM Global Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 200.000 millions |
|
500000 |
Redeemable Cumulative Preference Shares |
Rs. 100.00 each |
Rs. 50.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4193560 |
Equity Shares |
Rs. 10.00 each |
Rs. 41.936 millions |
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 |
41.936 |
41.936 |
65.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
300.344 |
207.978 |
114.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
342.280 |
249.914 |
180.800 |
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LOAN FUNDS |
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1] Secured Loans |
549.408 |
579.042 |
235.200 |
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2] Unsecured Loans |
76.405 |
71.245 |
51.700 |
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TOTAL BORROWING |
625.813 |
650.287 |
286.900 |
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DEFERRED TAX LIABILITIES |
86.262 |
87.497 |
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TOTAL |
1106.394 |
1027.697 |
467.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
717.512 |
715.039 |
201.500 |
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Capital work-in-progress |
100.993 |
19.125 |
3.600 |
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Incidental Expenditure during Construction Period |
21.098 |
4.816 |
0.000 |
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INVESTMENT |
0.115 |
0.208 |
78.600 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
275.268
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236.404 |
94.300 |
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Sundry Debtors |
427.538
|
339.346 |
167.200 |
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Cash & Bank Balances |
33.331
|
29.745 |
10.500 |
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Other Current Assets |
16.599
|
16.611 |
0.000 |
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Loans & Advances |
67.226
|
48.903 |
76.300 |
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Total
Current Assets |
819.962
|
671.009 |
348.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
512.173
|
370.754 |
141.100 |
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Provisions |
41.184
|
146.498 |
31.600 |
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Total
Current Liabilities |
553.357
|
517.252 |
172.700 |
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Net Current Assets |
266.605
|
283.756 |
175.600 |
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MISCELLANEOUS EXPENSES |
0.071 |
4.753 |
8.400 |
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TOTAL |
1106.394 |
1027.697 |
467.700 |
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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 |
1983.892 |
1531.684 |
662.200 |
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Other Income |
33.007 |
27.674 |
7.800 |
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Stock Adjustments |
0.000 |
0.000 |
3.500 |
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Total Income |
2016.899 |
1559.359 |
673.500 |
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Profit/(Loss) Before Tax |
219.509 |
158.093 |
45.300 |
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Provision for Taxation |
100.688 |
68.273 |
15.900 |
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Profit/(Loss) After Tax |
118.821 |
89.820 |
29.400 |
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Earnings in Foreign Currency : |
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Export Earnings |
104.639 |
73.274 |
0.000 |
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Commission Earnings |
0.000 |
0.000 |
0.000 |
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Other Earnings |
0.000 |
0.000 |
0.000 |
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Total Earnings |
104.639 |
73.274 |
0.000 |
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Imports : |
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Raw Materials |
63.930 |
34.284 |
0.000 |
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Stores & Spares |
79.257 |
23.838 |
0.000 |
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Capital Goods |
1.825 |
26.615 |
0.000 |
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
145.012 |
84.737 |
0.000 |
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Expenditures : |
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Materials Consumed |
1154.488 |
846.154 |
240.700 |
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Excise Duty |
0.000 |
0.000 |
86.900 |
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Power and Fuel Cost |
0.000 |
0.000 |
27.400 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
35.100 |
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Selling and Administration Expenses |
0.000 |
0.000 |
71.500 |
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Employee Cost |
184.681 |
160.936 |
81.700 |
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Other Operating Expenses |
285.743 |
246.519 |
13.200 |
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Depreciation |
90.494 |
75.860 |
28.500 |
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Interest and Financial Charges |
79.870 |
71.797 |
43.200 |
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Extraordinary Item(Capital work-in-progress written off) |
2.114 |
0.000 |
0.000 |
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Total Expenditure |
1797.390 |
1401.266 |
628.200 |
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SUMMARISED RESULTS
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PARTICULARS |
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|
30.03.2007 Full Year |
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Sales Turnover |
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|
1105.600 |
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Other Income |
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|
39.700 |
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Total Income |
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|
1145.300 |
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Total Expenditure |
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|
930.100 |
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Operating Profit |
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|
215.200 |
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Interest |
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|
40.900 |
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Gross Profit |
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|
174.300 |
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Depreciation |
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|
41.500 |
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Tax |
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|
18.500 |
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Reported PAT |
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|
86.100 |
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Dividend (%) |
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|
0.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
5.89
|
5.76 |
4.37 |
|
Net Profit Margin (PBT/Sales) |
(%) |
11.06
|
10.32 |
6.84 |
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.28
|
11.41 |
8.24 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.64
|
0.63 |
0.25 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.45
|
4.67 |
2.54 |
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Current Ratio (Current Asset/Current Liability) |
|
1.48
|
1.30 |
2.02 |
|
Long Term Debt Equity Ratio |
|
1.05
|
1.17 |
1.27 |
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Fixed Assets |
|
1.97
|
1.86 |
1.66 |
|
Inventory |
|
7.81
|
8.14 |
7.54 |
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Debtors |
|
4.14
|
4.38 |
4.12 |
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Interest Cover Ratio |
|
4.18
|
3.13 |
2.05 |
|
Operating Profit Margin |
(%) |
19.09
|
17.74 |
17.67 |
|
Profit Before Interest and Tax Margin |
(%) |
15.72
|
14.25 |
13.36 |
|
Cash Profit Margin |
(%) |
11.52
|
10.30 |
8.74 |
STOCK PRICES
|
Face Value |
Rs. 10.00 each |
|
High |
Rs. 1,250.00 |
|
Low |
Rs. 1,249.95 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
v Land and Development
v Buildings
v Plant and Machinery
v Measuring Instruments
v Electrical Installations
v Data processing Equipments
v Office Equipments
v Furniture and Fixtures
v Tools, Dies and Moulds
v Vehicles
v Application Software
PERFORMANCE OF the COMPANY
The Directors are
pleased to inform you that the Company has posted a Gross Turnover of Rs.1068.9
millions as against the previous year of Rs.866.400 millions, showing a growth
of 23%. The Net Profit for the year under review is Rs.127.900 millions as
against the previous year of Rs.84.200millions, showing a growth of 52%. This
has been made possible due to the continuing thrust of the Company on sale of
value-added products in both the domestic and export sectors, vigorous
cost-optimization measures and innovative value engineering initiatives.
Exports continue
to be the growth driver with sales touching Rs.115.200 millions, against
Rs.73.400 millions last year. This represents a significant growth of 57%. The
world's two largest tractor manufacturers, John Deere and Case New Holland,
have now classified the Company as a Strategic Global Source for pumps and
other machined castings. The export of machined castings to Tenneco Engineering
Germany is proceeding well.
RESEARCH & DEVELOPMENT
The Company
continues to design, develop and supply variants of the existing range of
hydraulic gear pumps. In fact, it now has one of the largest product portfolios
in the world. The production of hydraulic motors started in real earnest during
the year under review. Apart from supplying these as Original Equipment to JCB
A range of pumps, valves
and hydraulic aggregates have been approved for supply to Renault Agriculture,
France. The full range of tractor hydraulics is under development for a special
project of John Deere,
A broad range of
compressor housings castings have been developed for
QUALITY MANAGEMENT SYSTEM
The Company
successfully completed the third surveillance audit for ISO 9001:2000.
The certification
audit for ISO 14001:2004, Environment Management System (EMS), was successfully
completed in the year under report. The Aerospace Division successfully
completed the certification audit for AS 9100 and is therefore now in a
position to comfortably bid for business with Global aerospace majors.
SUBSIDIARY COMPANIES
JKM Dae Rim
Automotive Limited,
JKM Research Farm
Limited,
JKM Global
Private. Limited,
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Company is
All these products
are produced at the state-of-the-art manufacturing facility located at
Powermetric® Design
is a world class design centre capable of total product and system design, with
advanced
Capabilities in
structural, thermal and dynamic engineering for design validation, analysis and
optimization. Dynamatic Aerospace® produces exacting Airframe Structures and
Precision Aerospace components. Products include the vertical stabilizers,
horizontal stabilizers, ventral fins, canards, slats and air brakes for the
Sukhoi 30MKI fighter bomber; the Wing and Rear Fuselage for the LAKSHYA,
The Company
produces the Hydraulic Transmission System for
Pumps, Hydraulic
Transmission couplings and Distribution Mechanisms. Additionally, the Company
has designed the Steering Control System, Turret Control System and Braking
System for ARJUN Main Battle Tank.
Over 85% of all
agricultural tractors and construction equipment produced in
OPPORTUNITIES AND THREATS
The Company is now
supplying Hydraulic Gear Pumps to all 14 tractor manufacturers in
The Company is
continuing to develop numerous variants of pumps used in the Industrial sector,
with an aim of increasing penetration in this lucrative and growing market.
With an aim to tap into the rapidly growing Infrastructure sector, the Company
is putting in serious R&D efforts, to develop a range of Cast-iron body
pumps. This will open up new revenue streams for the Company.
Exports continue
to be the growth driver. The Company has now been approved as a Global Strategic
Source by the world's leading agricultural and construction equipment
manufacturers such as John Deere, Case New Holland, CLAAS, JCB, etc. Exports
continue to rise and now account or 11 % of total sales turnover, compared to
8% last year.
Exports are
projected to account for 25% of turnover, in the next 3-4 years. This will
greatly benefit the Company, in terms of both Turnover and Profitability.
The Company, as
approved at the last Annual General Meeting, has incorporated a Subsidiary
during the year, JKM Global Private. Limited, based in
The Aerospace
division has rapidly positioned itself as
The Company's
subsidiary JKM Dae Rim Automotive Limited has gone from strength to strength.
Apart from firmly establishing itself as one of
SEGMENT-WISE OR PRODUCT-WISE
PERFORMANCE
The sales revenues from each of the major business segments that the
Company is involved in, are as follows :
|
Segment |
Amount (Rs. in
Millions) |
Percentage (%) |
|
Hydraulics and Precision |
793.595 |
30.00 |
|
Aluminium Castings |
275.317 |
11.00 |
|
Automotive Components |
1523.039 |
59.00 |
|
Total |
2591.951 |
100.00 |
OUTLOOK
The Company's
reputation for developing innovative and cost-effective products continues to
grow, both in
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
PERFORMANCE
The Company's Net Profit
has grown by 52% against the Sales Turnover growth of 23%. This has
Come about due to
the relentless drive to eliminate operational inefficiencies, introduction of
more
Value-added
products and innovative Value Engineering initiatives.
The Company's
investments in its automotive subsidiary and foundry unit in Chennai has paid
off handsomely, as can be evidenced by the rapid growth in turnover of both units and their
ever-increasing contributions to the overall turnover. The improved overall
performance has been leveraged by the Company to negotiate substantial
reductions in financial costs. It has also enabled it to make fresh and
necessary Capital investments in Capacity, Research & Development and
Product Development.
Website details
attached
Subject was floated by J K Malhoutra. It is a medium-scale
engineering unit specializing in the production and marketing of quality
hydraulic elements, fluid systems and specialized engineering products. Subject
manufactures hydraulic gear pumps, control valves, hand pumps and other
hydraulic elements. It is the largest manufacturer of gear pumps in
Subject had a technological collaboration with Ultra
Nearly 80% of sales are supplied to OEMs and the rest goes to the
replacement market. Of the OEM supplies, over 60% is made to the tractor
segment and the balance to other OEMs in the precision engineering, Defence and
aviation sectors. Its gear pumps are exported to
In line with its expertise in precision engineering, it has developed
several products for aerospace applications. In its aerospace division, it has
manufactured specialized under-carriage valves for light combat aircrafts
(LCA), mobile hydraulic test benches for military jets and helicopters, a
hydraulic power system for the Polar Satellite Launch Vehicle (PSLV) III,
etc.
Subject has progressively increased its capacity for hydraulic pumps from
85,000 pa in 1992-93 to 1,20,000 pa at present. At a new plant to be set up
near
During the year 1997-98, it floated JKM Dae Rim Automotive Ltd in joint
venture with M/s Dae Rim Enterprises,
The company was awarded National Award for Excellence in indigenization
of Defence equipment during the year 1999-2000. Also during the year the
company has been certified to ISO 9001 Standards by Lloyds Registry for Quality
Assurance and customer certified to QS 9000 Standards.
The company plans to increase its efforts in developing new and more
economical applications in mechanized agriculture, earth moving, material
handling machine tools through continuous innovation. During the year 2000-2001
the company has entered into a marketing tie-up with ATOS s.p.a for the
national level distribution of electro-hydraulic products.
Subject produces highly engineered products for the following
applications:
·
Automotive Sector
·
Aerospace Sector
·
Agricultural Equipment Industry
·
Construction Equipment Industry
DYNAMATIC® HYDRAULICS is
DYNAMETAL® produces high quality Non-Ferrous Alloy Castings for Industrial,
Automotive and Aerospace Applications. The divisions' two foundries are located
at
POWERMETRIC® a world-class
News and Updates
Dynamatic Aerospace®, a
division of Dynamatic Technologies Ltd, a pioneer and a recognised leader in
the Indian Private Sector for the development of complex aero structures
announced their partnership with Cobham Plc on 8th February 2007 at Aero
India 2007. Dynamatic Aerospace® has been given the rights to manufacture the
CBLS 2000 Practice bomb Carrier for Indian and Export markets with Cobham PLC
and its Air Refuelling & Auxiliary Mission Equipment division.
According
to Udayant Malhoutra, CEO and Managing Director of Dynamatic Technologies
Limited, “The partnership with Cobham is important for the private aerospace
manufacturing industry as they will manufacture for both Indian and export
markets. This is a rare opportunity for a private sector company in
Speaking
to the media, Allan Cook, the CEO of Cobham said “This is our first strategic
alliance with private industry in
“In
addition the two companies are in detailed discussions regarding partnering in
other business areas for the Indian Defence Forces. Cobham Air Refueling &
Auxiliary Mission Equipment designs and manufactures mission systems aerospace
and Defence and has been supplying the Indian market for over 20 years,” added
Mr. Cook.
Elaborating
on the partnership with Cobham, Mr. Malhoutra added “Dynamatic® is a well known
and successful private Company having expertise in the manufacture of high
quality products for the aerospace and Defence markets. The Agreement will
benefit Dynamatic by giving access to Cobham Weapons Carriage and Release
portfolio and benefit Cobham with an increased market and lower cost
manufacturing base.”
Dynamatic
Aerospace®, a division of Dynamatic Technologies Ltd, is a pioneer and a
recognized leader in the Indian Private Sector for the development of complex
aero structures. Over the past decade, the Company has closely partnered the
Ministry of Defense, Hindustan Aeronautics Limited and other defense establishments
on key projects including the Lakshya,
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. 40.98 |
|
|
1 |
Rs. 80.98 |
|
Euro |
1 |
Rs. 54.99 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|