MIRA INFORM REPORT
|
Report Date : |
11.06.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MAGMA LEASING LIMITED |
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Registered Office : |
Magma House, 24, Park Street, Kolkata -
700016, West Bengal |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.12.
1978 |
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Com. Reg. No.: |
21-31813 |
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CIN No.: [Company Identification No.] |
U51504WB1978PTC031813 |
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TAN No.: [Tax Deduction & Collection Account
No.] |
CALM00631B |
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Legal Form : |
A
Public Limited Liability Company. The company's shares are listed on the
Stock Exchange. |
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Line of Business : |
Manufacturing,
Trading and Financial Services and has laid the foundation for emerging as a
multi-divisional enterprise specialising in diverse lines of business such as
Financial Services covering leasing, hire-purchase and bill discounting
through a separate division as well as through an exclusive Financial
Services Company called Magma Leasing Limited (erstwhile) which was
separately incorporated for the purpose. The company is in agreement with
CDSL & NSDL for dematerialisiation. |
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 |
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Maximum Credit Limit : |
USD
5000000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well – established company having satisfactory track. Trade relations
are fair. Payments are 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 : |
Magma House, 24, |
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Tel. No.: |
91-33-2174444/45 |
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E-Mail : |
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Website : |
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Magma Carta Car Finance Divisions |
Bhubaneshwar 168-169A,
Bapujinagar, Bhubaneshwar - 751 009, Orissa Ph No.
: 91-674-533254/56 Fax
No. : 91-674-532121 E-mail
: magmabsr@cal2.vsnl.net.in Contact
: Mr. P. K. Mahaputra ( 168-169A,
Bapujinagar, Bhubaneshwar - 751 009, Orissa Ph No.
: 91-674-533254/56 Bhiringhee,
Ph No.
: 91-343-585247/48 E-mail
: magmadgp@dte.vsnl.net.in Contact
: Mr. Partha Dutta / Pikloo Roy ( C/o
Orbit Motors Private Limited Ph No.
: 91-661-511577/588 Contact
: Mr. N. Sathpathi ( Berhampur C/o
Lohia Motors Limited Dharma
Behind
Rukmini Talkies, Berhampur - 760 002 Ph No.
: 91-680-231531/563 Contact
: Mr. S. K. Shamal ( 11th
13 Rana
Pratap Marg, Ph No.
: 91-522-207717 E-mail
: mdcruz@mantraonline.com Contact
: Mr. Melcom D`Cruz ( Ph No.
: 91-771-253771/772 Fax
No. : 91-771-253794 E-mail
: magmarpr@bom6.vsnl.net.in Contact
: Mr. H. P. Pai ( Bilaspur
Contact
: Mr. B. Bisht ( Sambalpur Golbazar,
Nayapada, Sambalpur - 768 001 Ph No.
: 91-663-403531/711 Contact
: Mr. T. H. Rajesh ( Bhilai
Shop
No. 1, Satya Shanti Complex, Contact
: Mr. Sunil Jaiswal ( Durg Shop
No. 1, Satya Shanti Complex, Contact
: Mr. Sunil Jaiswal ( |
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DIRECTORS
|
Name : |
Mr.
Mayank Poddar |
|
Designation : |
Chairman & Managing Director |
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Name : |
Mr.
Sanjay Chamria |
|
Designation : |
Managing Director |
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Name : |
Mr.
Bodhishwar Rai |
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Designation : |
Director
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Name : |
Mr.
Ved Parkash Taneja |
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Designation : |
Director
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Name : |
Mr.
Keshaw Pandey |
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Designation : |
Director |
KEY
EXECUTIVES
|
Name
: |
Mr.
Laxmi Narayan Mandhana |
|
Designation
: |
Company Secretary |
MAJOR
SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter's Holding - Indian Promoters |
8128719 |
71.46 |
|
Institutional Investors - Banks Financial Institutes and Insurance |
2440524 |
21.46 |
|
Other Investors - Private Corporate Bodies |
65301 |
0.57 |
|
General Public |
740448 |
6.51 |
|
TOTAL |
11374992 |
100.00 |
BUSINESS
DETAILS
|
Line of Business : |
Manufacturing,
Trading and Financial Services and has laid the foundation for emerging as a
multi-divisional enterprise specialising in diverse lines of business such as
Financial Services covering leasing, hire-purchase and bill discounting
through a separate division as well as through an exclusive Financial
Services Company called Magma Leasing Limited (erstwhile) which was
separately incorporated for the purpose. The company is in agreement with
CDSL & NSDL for dematerialisiation. |
GENERAL
INFORMATION
|
No. of Employees : |
300 |
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|
|
|
Bankers : |
v
Allahabad Bank v
Andhra Bank v
Citibank NA v
Dena Bank v
ICICI Bank Limited v
Oriental Bank of Commerce v
Punjab National Bank v
State Bank of v
State Bank of v
Union Bank of v
United Bank of |
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Facilities : |
-- |
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Banking Relations : |
-- |
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Auditors : |
S. S.
Kothari & Company Chartered
Accountant, Kolkata,
West Bangal, |
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Subsidiaries : |
v
Viper Estates and Investments Limited v
Magma Securities Limited |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.00 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
47480000 |
Equity Shares |
Rs. 10/- each |
Rs. 474.800 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 |
474.800 |
273.800 |
273.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
922.100 |
526.700 |
429.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1396.900 |
800.500 |
703.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4071.100 |
2372.500 |
1689.300 |
|
|
2] Unsecured Loans |
546.100 |
1118.400 |
413.600 |
|
|
TOTAL BORROWING |
4617.200 |
3490.900 |
2102.900 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
6014.100 |
4291.400 |
2806.300 |
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|
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|
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APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
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FIXED
ASSETS [Net Block] |
1556.600 |
1175.400 |
392.500 |
|
|
Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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INVESTMENT |
81.500 |
87.500 |
90.000 |
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|
DEFERREX
TAX ASSETS |
0.0000 |
0.000 |
0.000 |
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CURRENT
ASSETS, LOANS & ADVANCES |
|
|
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|
Inventories |
|
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|
Sundry
Debtors |
7588.900
|
4526.700 |
3214.300 |
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|
Cash
& Bank Balances |
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|
|
|
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Other
Current Assets |
|
|
|
|
|
Loans
& Advances |
520.200
|
864.700 |
387.900 |
|
Total Current
Assets |
8109.100
|
5391.400 |
3602.200 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current
Liabilities & Provisions |
3733.100
|
2362.900 |
1278.400 |
|
|
|
|
|
|
|
Total Current
Liabilities |
3733.100
|
2362.900 |
1278.400 |
|
|
Net Current Assets |
4376.000
|
3028.500 |
2323.800 |
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6014.100 |
4291.400 |
2806.300 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1516.600 |
988.200 |
834.500 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
305.800 |
232.200 |
200.400 |
|
Provision for Taxation |
104.100 |
92.500 |
24.100 |
|
Profit/(Loss) After Tax |
201.700 |
139.700 |
176.300 |
|
|
|
|
|
|
Total Expenditure |
1511.200 |
978.200 |
831.100 |
QUARTERLY / SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Sales Turnover |
432.800 |
516.000 |
556.200 |
|
Other Income |
21.100 |
4.800 |
26.700 |
|
Total Income |
453.900 |
520.800 |
582.900 |
|
Total Expenditure |
169.600 |
233.300 |
266.500 |
|
Operating Profit |
284.300 |
287.500 |
316.400 |
|
Interest |
117.100 |
138.400 |
167.200 |
|
Gross Profit |
167.200 |
149.100 |
149.200 |
|
Depreciation |
56.900 |
57.000 |
56.600 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
110.300 |
92.100 |
92.600 |
200606 Quarter 1
Notes
EPS is Basic & Diluted 1. The said working results have been reviewed
by the Audit Committee and taken on record by the Board of Directors of the
Company at its Meeting held 31 th July.2006. 2. The Statutory Auditors have
carried out a Limited Review of the financial results for the quarter ended
June 30,2006. 3. Provision for Tax and Deferred Tax has been made (as
applicable) at the time of finalisation of accounts for the year ended March
31,2007. 4. Previous year / quarter figures are regrouped / restated, wherever
found necessary. 5. The business of the Company falls within a single primary
business segment, viz, ''Asset Financing''. 6. There were no investors complaints
received during the quarter and none was pending disposal at the beginning and
end of the quarter.
200609 Quarter 2
Notes :
1) The said working results have been reviewed by the Audit Committee
and taken on record by the Board of Directors of the Company at its Meeting
held on 31st October, 2006. 2) The Statutory Auditors have carried out a
Limited Review of the Financial Results for the quarter ended and upto
September 30, 2006. 3) Consistent with past practice, provision for Tax, Fringe
Benefit Tax and Deferred Tax will be considered (as applicable) at the time of
finalisation of accounts for the year ended March 31, 2007. 4) The business of the
Company fails within a single primary business segment, viz., 'Asset
Financing'. 5) The Board of Directors, at its meeting on 25th August 2006, has
approved a proposal for merger with Shrachi Infrastructure Finance Limited. The
merger is subject to approval from the High Court, Stock Exchanges,
shareholders of both companies and regulatory bodies. The above results are
without considering the prospective merger. 6) In August, 2406 the Company has
raised Rs. 4567.99 lacs through Preferential allotment of 25,37,772 Equity
Shares of Rs. 10/- each at a premium of Rs. 170% per share to (a) Cambridge
Place Investment Management Structured Credit Fund A 20 Limited, (b) Cambridge
Place Investment Management Structured Credit Fund A 1000 Limited and (c)
Cambridge Place Investment Management Structured Credit Fund A 1500 Limited.
EPS for the current quarter and period ended 30th September 2006 has been
calculated on the average number of equity shares outstanding during the period
including the enhanced capital. 7) Previous year / quarter figures are
regrouped t restated, wherever found necessary. 8) There were no Investor
grievances received during the quarter and none was pending disposal at the
beginning and end of the quarter
200612 Quarter 3
Notes
Expenditure Includes Staff Cost Rs 80.467 million Operative,
Administrative & Other Expenses Rs 186.056 million EPS is Basic Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter Nil
Complaints disposed off during the quarter Nil Complaints unresolved at the end
of the quarter Nil 1. The said working results have been reviewed by the Audit
Committee and taken on record by the Board of Directors of the Company at its
meeting held on January 31, 2007. 2. The Statutory Auditors have carried out a
Limited Review of the Financial Results for the quarter ended and upto December
31, 2006. 3. Consistent with past practice, provision for Tax, Fringe Benefit
Tax and Deferred Tax will be considered (as applicable) at the time or
finalisation of accounts for the year ended March 31, 2007. 4. The business of
the Company falls within a single primary business segment, viz., 'Asset
Financing'. 5. The Board of Directors, at its meeting on August 25, 2006, has
approved a proposal for merger with Shrachi Infrastructure Finance Ltd. The
merger proposal was subsequently approved by the shareholders of both Companies
at meetings convened on December 29, 2006 and is now awaiting final approval
from the High Court of Calcutta. The above results are without considering the
prospective merger. 6. In August, 2006 the Company has raised Rs 456.799
million through Preferential allotment of 25,37,772 Equity Shares of Rs 10/- at
a premium of Rs 170/- per share to (a) Cambridge Place Investment Management
Structured Credit Fund A 20 Ltd (b) Cambridge Place Investment Management
Structured Credit Fund A 1000 Ltd and (c) Cambridge Place Investment Management
Structured Credit Fund A 1500 Ltd. EPS for the current quarter and period ended
December 31, 2006 has been calculated on the average number of equity shares
outstanding during the period including the enhanced capital. 7. Previous year
/ quarter figure are regrouped / restated, wherever deemed necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
3.69 |
3.72 |
2.98 |
|
Long
Term Debt Equity Ratio |
1.53 |
1.66 |
1.46 |
|
Current
Ratio |
1.25 |
1.33 |
1.57 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.98 |
1.12 |
1.78 |
|
Inventory
|
0.39 |
0.39 |
0.35 |
|
Debtors |
38.20 |
23.20 |
11.71 |
|
Interest
Cover Ratio |
1.86 |
1.96 |
1.77 |
|
Operating
Profit Margin (%) |
53.08 |
51.13 |
56.81 |
|
Profit
Before Interest and Tax Margin (%) |
43.59 |
48.00 |
55.09 |
|
Cash
Profit Margin (%) |
22.79 |
17.27 |
22.85 |
|
Adjusted
Net Profit Margin (%) |
13.30 |
14.14 |
21.13 |
|
Return
on Capital Employed (%) |
12.83 |
13.36 |
16.65 |
|
Return on Net Worth (%) |
21.01 |
20.19 |
29.26 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.155.00/- |
|
Low |
Rs.149.95/- |
LOCAL
AGENCY FURTHER INFORMATION
History
Incorporated in Dec.'78 as ARM Group Enterprises Private Limited, subject
was converted into a public limited company in Oct.'80. It was promoted by
Mayank Poddar. The company provides financial services like leasing,
hire-purchase, bill discounting and real estate leasing and development. Currently,
In Mar.'95, MLL came out with a rights issue of 13% PCDs, aggregating Rs
100.400 Millions to part-finance its expansion. MLL also plans to forge
strategic alliances with international finance majors to consolidate its
position in leasing and hire-purchase.
Business
The year under review witnessed certain changes in the automobile industry,
such as implementation of VAT in many states, changes in models in compliance
with new environmental norms coming into place etc. Many states witnessed
erratic and late monsoon hitting sporadically offtake of vehicles and stalling
construction activities in a few regions. Growth slowed down in Cars and
Commercial Vehicles sectors to 7.7% and 10.10% respectively during the year
under review. Keeping in view the market dynamics, the Company launched high
yield Used Commercial Vehicle finance business to cater to customers in the
semi urban and rural markets and strategic construction equipment finance
business to participate in the burgeoning infrastructure sector. Besides, the
Company strengthened its insurance services to its clientele and launched
personal loans business through an associate company, earning fee based income
on both these counts.
The Company continued to make substantial investments in strengthening its IT
platform and enriching human capital through role enhancements to reach higher
levels of productivity and profitability. The principal retail finance skills
of sales, credit & collection have been deep rooted at all operational
units of the Company under the leadership of specialized professionals,
preparing a strong platform for managing its portfolio and undertaking
competitive challenges for future.
Against the backdrop of slow industry growth, the Company clocked an impressive
growth in disbursements of 33% to Rs. 18196.300 Millions in 2005-06. The table
below depicts achievements in various products lines with respective growth
percentages.
Rs. Millions
Particulars - 2005-06 200.405 Growth percentage
Commercial Vehicles 80,6965.600 72,38.318, 1.149
Construction Equipments 41,00.585 32,1936.100, 2.737
Passenger Cars& Utility Vehicles 45,16.258, 32,52.003, 3.888
Commercial Vehicles 2 10,40.463 NA NA
Strategic CE 4,69.369 NA NA
Total Disbursements 181,96.330 137,09.682, 3.273
Dividend
The Directors propose a tax-free Dividend of 18% on Equity Shares,
pro-rata, amounting to Rs 24.031 and 9.70%, 12.25%, 13.25% on Cumulative
Non-Convertible Redeemable Preference Shares of Rs.100 each, alloted on 17
February, 2006 (as applicable as per the terms of allotment).
Corporate Governance
The Company has consistently been complying with the Corporate Governance code
prescribed by SEBI and a detailed report on Corporate Governance together with
a certificate of compliance from the statutory auditors, as required by Clause
49 of the Stock Exchange Listing Agreement, form part of the Annual
Report.
RBI Regulations - Compliance
The Company continues to carry on its business as a Non Deposit Taking Company
and follows prudent financial management norms as applicable and continues to
progressively follow the internationally accepted accounting principles on
revenue recognition, provisioning and asset classification which are more
stringent than the guidelines prescribed by RBI. A detailed note is appended in
Schedule 16 - Notes on Accounts. The gross and net NPA stood at NIL and NIL
respectively. The Company has appended a statement containing additional
particulars as per Clause 19 of Schedule 16 of Notes on Accounts.
Financial performance
For
any company engaged in the business of financing, the biggest challenge lies in
the mobilization of funds at the lowest possible cost, onward deployment of
such funds at the highest possible realizations as well as accelerated
deployment.
Subject today competes not only with peer level non-banking finance companies
but also large commercial banks. These banks are advantageously placed due to
their lower cost of funds. Due to the sheer volumes they are also better placed
to absorb a rise in interest rates, can generate income from multiple sources
and can leverage scale for enhanced profitability.
From this perspective, it would appear that the playing field is skewed against
the company. However, Magma has survived and succeeded, due to a combination of
factors like:
Better treasury management and continuous swap of high cost by relatively lower
cost of funds e.g., CP, FCNR (B) loan, Securitisation etc.
Enhanced bank finance at best competitive rates largely due to strong
financials and impeccable credit history
Entry into low cost and high yield products
Better cash management
Presence in locations not accessed by commercial banks
Quicker decision making
Disbursements
The Company disbursed Rs.18196.300 Millions in 2005-06, which was approximately
33 per cent higher than the previous year. This generated a 55 per cent
increase in the Company's total income from Rs.980.200 Millions in 2004-05 to
Rs.1515.800 Millions in 2005-06.
Disbursement of products financed
Products 2004-05 2005-06
Commercial vehicles 7238.300, 8069.700 Passenger cars andmulti-utility vehicles
3252.000, 4516.300
Construction equipments 3219.400, 4100.600
Used commercialVehicle finance NA 1040.400
Strategic CE NA 469.400
Expenses
Subject focused on the mobilisation of funds at the best competitive rate:
however marginal cost of funds at 7.23 per cent in 2005-06 was higher than 6.95
per cent in the previous year resulting in higher interest outgo from Rs.
242.000 Millions in 2004-05 to Rs. 355.800 Millions in 2005-06. The company
swapped its high cost working capital loans (the cash credit, demand loans,
etc.) with low cost funds (viz. commercial paper, short-term loans and FCNR (B)
loans) wherever possible through a better treasury management process.
The company's transaction cost declined from 45.66 percent of the aggregate
revenues in 2004-05 to 38.79 per cent in 2005-06. For sustaining continuous
growth in volumes, Magma has invested adequately in human and physical capital:
the company increased its gross block from Rs 503.900 Millions to Rs.543.100
Millions and employee costs from Rs 197.400 Millions in 2004-05 to Rs 250.300
Millions in 2005-06.
Profitability
Subject strengthened its internal rate of return on credit operations through
an improved product mix. A healthy ratio between new and refinanced cases
yielded a better IRR. Thrust on the financing of used commercial vehicles which
yield higher returns and an entry into Strategic CE areas have augured well for
better yields and higher volumes. The contribution from insurance business and
the sale of personal loans have further added to company's profitability.
Consequently, the Company's profit after tax increased by 44.43 per cent from
Rs.139.700 Millions in 2004-05 to Rs.
201.700 Millions in 2005-06. Despite slow industry growth and lower ticket size,
business per employee increased 1.95 per cent from Rs.12.400 Millions in 2004-05 to Rs.12.700 Millions in 2005-06.
Transaction costs declined from Rs.15487 per contract in 2004-05 to Rs.15151
per contract in 2005-06 due to operational integration and the introduction of
a profit-centre approach in 2005-06.
Outlook
The outlook of Magma in 2006-07 is cautiously optimistic.
As per Website Details.
Profile
Subject
was incorporated in 1988 and commenced operations in 1989. The company merged
with Arm Group Enterprises in 1992 to strengthen its business further.
Since then, subject has emerged over the last decade-and-a-half as one of
In
response to the rapidly evolving demand of an
- Commercial vehicle finance.
- Construction equipment finance.
- Passenger car finance.
Interestingly, their rapid growth
over the last few years is not just derived from their conscious initiative in
growing their physical infrastructure; it originates in the prudent investments
that they have made in lasting relationships - with team members, alliance
partners, customers and vendors.
As a result, they have achieved a compounded annual growth rate of over 73 per
cent over the last four years. They have outperformed the growth in the Indian
financing industry.
Now by the same approach, they
expect to make this growth an achievable possibility and expect to make it
sustainable. Resulting in an organisation that is stronger and more responsive
to growing needs of a dynamic nation.
Their products - Commercial vehicle finance
- Subject is a prominent player in
commercial vehicle finance in each of the states in which it operates.
- Their primary focus is on financing
first-time users and between 1-5 vehicle owners.
- Their large geographical coverage is
marked by a hub-and-spoke approach through an array of regional, branch
and pocket offices.
- They enjoy an unbroken record of
‘customer satisfaction throughout the loan period’; they are proud to have
created a sense of entrepreneurship among their hirers.
- They pre-fund their commercial vehicle
dealers to accelerate the delivery of vehicles to their customers.
- They participate directly in the
promotional activities of their dealers and manufacturers, resulting in a
greater acceptance by them.
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 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
NO |
|
--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 |