MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
HARYANA LEATHER
CHEMICAL LIMITED |
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Registered Office : |
72-77, Industrial
Estate, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22-01-1985 |
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Com. Reg. No.: |
19905 |
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CIN No.: [Company
Identification No.] |
L74999HR11985PLC019905 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKH02403C |
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PAN No.: [Permanent
Account No.] |
AAACH3955N |
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Legal Form : |
A closely Held
Public Limited Liability Company |
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Line of Business : |
Manufacturing of leather
acrylic emulsion, leather lubricating preparation and leather finishing
preparation. |
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 450000 |
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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 businessman. Trade relations are
reportated as fair. Business is active. Payments are usually correct and as
per commitments. The company can
be considered normal for any business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office / Factory : |
72-77, HSIDC
Industrial Estate, |
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Tel. No.: |
91-1681-225662 /
225899 / 226645 |
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Fax No.: |
91-1681-225101 |
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E-Mail : |
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Website : |
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Head Office : |
B-316-319,
Somdutt Chambers I, 5, |
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Tel. No.: |
91 - 11 - 2617
1967 / 2616 3268 |
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Fax No.: |
91 - 11 - 2618 2705 |
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Corporate
Office : |
1004, Bhikaji
Cama Bhawan, |
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Tel. No.: |
91-11-26171967 /
26106673 / 26163268 |
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Fax No.: |
91-11-26182705 |
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E-Mail : |
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Factory : |
52-53, HSIDC, Industrial Estate, |
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Branch: |
Chennai
No.2, 3rd
floor, Raheja Complex, 834, Anna Salai, Chennai - 600 002, |
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Tel. No.: |
91-44-2852 3088 |
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Branch: |
Kolkata 10-C, |
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Tel. No.: |
91-33-2343 8625 |
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Fax No.: |
91-33-2343 8680 |
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Branch : |
CU-2, |
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Tel. No.: |
91-562-2385363 |
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Fax No.: |
91-562-2351843 |
DIRECTORS
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Name : |
Mr. Pankaj Jain |
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Designation : |
Managing Director |
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Name : |
Mr. N K Jain |
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Designation : |
Director |
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Name : |
Mr. V K Garg |
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Designation : |
Director |
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Name : |
Mr. H K Gupta |
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Designation : |
Director |
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Name : |
Mr. H C Dutta |
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Designation : |
Director |
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Name : |
Mr. K S V Menon |
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Designation : |
Director |
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Name : |
Mr. Massimo
Medini |
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Designation : |
Director |
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Name : |
Mr. Piero
Tranchinetti |
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Designation : |
Director |
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Name : |
Mr. Sippy Jain |
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Designation : |
Alternate
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ashok Yadav |
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Designation : |
Company Secretary |
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CORPORATE EXECUTIVES |
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Dr. PL. Maurya |
General Manager (Works) |
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Mr. A.K. Nanda |
A.G.M. - Maintenance |
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Mr. A.K. Gupta |
A.G.M. – Materials |
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Mr. Ramesh Goyal |
A.G.M. – Production |
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Mr. Neeraj Bishnoi |
A.G.M. – Marketing |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
PROMOTERS'
HOLDING |
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Promoters |
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Indian Promoters |
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|
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Narendra
Kumar Jain |
282360 |
5.80
% |
|
Pankaj Jain |
382810 |
7.80 % |
|
Sippy Jain |
143200 |
2.90
% |
|
Munak Holding Limited |
88600 |
1.80 % |
|
Haryan State Industrial Development Corporation |
250100 |
5.10
% |
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Others |
130278 |
2.70
% |
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Foreign Promoters |
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|
|
Savita Aggarwal (NRI) |
138190 |
2.80
% |
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PERSONS ACTING IN CONCERT |
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|
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Icap Sira Chemicals & Polymers SpA |
768470 |
15.70
% |
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Sub Total |
2184008 |
44.50
% |
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NON PROMOTERS HOLDINGS |
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Innstitutional Investers |
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Mutual Funds & U T I |
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UTI |
6200 |
0.10
% |
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CAN BANK |
1600 |
0.030
% |
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Banks, Financial Institutions, Insurance Companies |
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|
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IFCI |
227700 |
4.60
% |
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Others |
3200 |
0.10
% |
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FII |
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|
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Sub Total |
238700 |
4.90
% |
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OTHERS |
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Private Coporate Bodies |
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|
HB Leasing & Finance Company Limited |
94700 |
1.90
% |
|
Ind La Fa Chem Limited |
71100 |
1.40
% |
|
Intellec Trading And Agencies Private Limited |
55000 |
1.10
% |
|
Marwadi Shares & Finance Private Limited |
77800 |
1.60
% |
|
Others |
188600 |
3.80
% |
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INDIAN PUBLIC |
|
|
|
Vijay Kishanlal Kedia |
238100 |
4.90
% |
|
Jimit Rathi & jai Kishan Rathi |
73000 |
1.50
% |
|
S. Sangeetha |
62700 |
1.30
% |
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Others |
1624762 |
33.10
% |
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NRI / OCB |
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Any Others |
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Sub
Total |
2485762 |
50.60
% |
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GRAND
TOTAL |
4908470 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
leather acrylic emulsion, leather lubricating preparation and leather
finishing preparation. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Leather Chemicals and Auxiliaries, Acrylic Emulsions and Adhesives |
MT |
2710.0 |
2528.86 |
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EOU Division |
MT |
500.00 |
303.650 |
GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
Around 200 |
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Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. C. Dewan &
Company Chartered
Accountants |
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Address : |
Panchkula |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs. 10/- each |
Rs, 60.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4908470 |
Equity Shares |
Rs. 10/- each |
Rs. 49.085 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 |
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|
|
|
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1] Share Capital |
49.085 |
49.084 |
49.084 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
65.574 |
54.888 |
49.868 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
114.659 |
103.972 |
98.952 |
|
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LOAN FUNDS |
|
|
|
|
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1] Secured Loans |
1.504 |
0.666 |
3.961 |
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2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING
|
1.504 |
0.666 |
3.961 |
|
|
DEFERRED TAX
LIABILITIES |
12.801 |
13.108 |
12.812 |
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TOTAL
|
128.964 |
117.746 |
115.727 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
62.103 |
59.672 |
59.966 |
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Capital work-in-progress
|
0.339 |
2.194 |
1.998 |
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INVESTMENT
|
0.000 |
0.000 |
0.000 |
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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
|
24.657
|
16.158 |
17.323 |
|
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Sundry Debtors
|
71.782
|
69.083 |
66.204 |
|
|
Cash & Bank Balances
|
3.273
|
2.150 |
1.492 |
|
|
Other Current Assets
|
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances
|
9.223
|
6.245 |
6.135 |
Total Current Assets
|
108.935
|
93.636 |
91.154 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
42.413
|
37.756 |
37.391 |
|
|
Provisions
|
0.000
|
0.000 |
0.000 |
Total Current Liabilities
|
42.413
|
37.756 |
37.391 |
|
Net Current Assets
|
66.522
|
55.880 |
53.763 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
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|
|
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TOTAL
|
128.964 |
117.746 |
115.727 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
181.301 |
166.229 |
154.176 |
|
|
Other Income |
1.658 |
1.210 |
|
|
|
Total Income |
182.959 |
167.439 |
154.176 |
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|
|
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|
|
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|
Profit/(Loss) Before Tax |
15.536 |
8.606 |
9.844 |
|
|
Provision for Taxation |
4.850 |
3.587 |
2.294 |
|
|
Profit/(Loss) After Tax |
10.686 |
5.019 |
7.550 |
|
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Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
60.594 |
41.318 |
21.557 |
|
Total Earnings |
60.594 |
41.318 |
21.557 |
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Imports : |
|
|
|
|
|
|
Raw Materials |
14.337 |
11.679 |
12.258 |
|
|
Capital Goods |
0.000 |
1.569 |
|
|
Total Imports |
14.337 |
13.248 |
12.258 |
|
|
|
|
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|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
114.233 |
114.375 |
|
|
|
Manufacturing, Administrative and
Distribution Expenses |
45.959 |
37.613 |
|
|
|
Financial Expenses |
1.602 |
1.645 |
|
|
|
Depreciation & Amortization |
5.629 |
5.200 |
|
|
|
Other Expenditure |
0.000 |
0.000 |
144.332 |
|
Total Expenditure |
167.423 |
158.833 |
144.332 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 |
|
Type |
|
|
Full
Year |
|
Sales
Turnover |
|
|
236.700 |
|
Other
Income |
|
|
1.700 |
|
Total
Income |
|
|
238.400 |
|
Total
Expenditure |
|
|
210.200 |
|
Operating
Profit |
|
|
28.200 |
|
Interest |
|
|
`0.800 |
|
Gross
Profit |
|
|
27.400 |
|
Depreciation |
|
|
6.100 |
|
Tax |
|
|
4.000 |
|
Reported
PAT |
|
|
17.600 |
|
Dividend
(%) |
|
|
0.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.01 |
0.02 |
0.08 |
|
Long Term Debt-Equity Ratio |
0.01 |
0.01 |
0.00 |
|
Current Ratio |
1.89 |
1.77 |
1.59 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.65 |
1.61 |
1.38 |
|
Inventory |
9.79 |
11.10 |
8.63 |
|
Debtors |
2.84 |
2.75 |
2.34 |
|
Interest Cover Ratio |
10.75 |
6.38 |
7.19 |
|
Operating Profit Margin(%) |
11.39 |
8.28 |
10.80 |
|
Profit Before Interest And Tax Margin(%) |
8.59 |
5.49 |
7.53 |
|
Cash Profit Margin(%) |
8.14 |
5.49 |
8.25 |
|
Adjusted Net Profit Margin(%) |
5.34 |
2.69 |
4.97 |
|
Return On Capital Employed(%) |
15.57 |
9.82 |
11.18 |
|
Return On Net Worth(%) |
9.79 |
4.93 |
7.98 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.[0.01] |
|
Low |
Rs.[0.01] |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Incorporated on 22 Jan.'85 and commencing business on 22 Apr.'85,
Haryana Leather Chemicals (HLCL) is promoted by N K Jain and the Haryana State
Industrial Development Corporation (HSIDC). HLCL came out with a public issue
in Sep.'88 to finance its Rs 46.700 Millions project, to manufacture a wide
range of leather chemicals and auxiliaries (cap. : 1510 tpa). It issued right
shares in Oct.'92 to finance the export-oriented expansion programme. Located
in Jind, Haryana, it went on stream in Apr.'88.
Leather chemicals are used for leather finishing. The company's products
include fat liquors and finishing chemicals such as binders, pigments, waxes,
feel modifiers, lacquers, etc. It has entered into technical collaborations
with two internationally reputed European companies -- A Smit and Zoon,
HLCL commenced commercial production of cross-linking acrylic binders in 1994-95,
mainly for export.
The company has decided to diversify into the field of high performance
pressure sensitive adhesive for packaging industry, for this a technology
transfer agreement has already been executed by the company with M/s ICAP Sira
Chemicals & Polymers SpA,
In 2000-2001 the company has undertaken a major expansion to add synthetic
tanning agent to its range of products in view of the emerging demand of the
synthetic tanning agents.The new range of Fatliquor has been widely accepted.
The company plans to produce syntans and hope to commence production by
December,2003.
OPERATIONS
During the year the company has achieved a turnover (Net of Excise) of Rs.
181.300 Millions against Rs. 166.200 Millions for the previous year and net
profit for the year is Rs. 10.700 Millions against Rs. 5.000 Millions for the
previous year.
This year the company has been able to achieve a better capacity utilization
compared to previous years. During the year company's exports are Rs. 60.600
Millions compared to the previous year's exports of Rs. 41.300 Millions.
QUALITY
CONTROL
As a part of the continuous improvement on products and processes, the company
achieved better quality standards as compared to previous years with tighter
tolerances on end products and inputs. The new quality system of ISO 9001:2000
is in place and final audit for certification is underway.
DIVERSIFICATION AND NEW PRODUCTS
E.O.U. Division
The company has stabilized its EOU unit operations as an independent operating
unit with new equipment and manpower.
The unit has started to serve some key new customers in far eastern countries,
requiring very high quality finishing chemicals.
TECHNOLOGY DEVELOPMENT
The company has kept pace with new trends and technologies to compete the
companies in western countries. The completion of research project on
'Polyurethane Dispersions' has given a big boost to company's status and during
field trials the customer's response is quite encouraging. The company is
finalizing the plans for commercialization of Polyurethane Dispersions in a new
set up within existing facilities or altogether a new unit subject to techno
economic feasibility.
The new thrust on technology development will be on 'Polymeric Fatliquors which
is partly being funded by DSIR (Dept. Of Scientific and Industrial Research).
The company has received 2.500 Millions from DSIR. The project is progressing
satisfactorily.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Industry Structure
Due to merger and restructuring of foreign multinationals in leather chemicals,
the company has identified newer distribution channels , both in domestic and
export markets.
Opportunities & Threats
Opportunities
For leather chemical companies,
Threats
The most significant and realistic threat to leather chemical industry is the
petroleum price hike. Most inputs are based on petroleum, therefore a sudden
jump in input cost cannot be transferred to the customers and chemical
manufacturers end up absorbing a significant portion which erodes the profit
margins. However this can be offset by higher plant capacity utilization,
better yields and efficiencies.
Segment-wise or product-wise
performance
The domestic sales are likely to be stagnant and the growth is foreseen in
exports especially to Far Eastern countries The finishing chemical sales may
see a decline as there is more demand for naked finishes requiring lesser
finishing chemicals.
Product wise, the Syntans and specialized Fatliquors have been performing well
and company's strategy will be to obsolete the commodities and move towards
specialties which are not so price sensitive. This can be possible because of
company's ongoing R & D programes on various items.
Outlook
The outlook if Indian leather industry is good and export will remain as a
thrust area. The leather chemical industry is likely see a change due to
continuation of mergers and acquisitions in international markets. Technology
and application services will dictate the market shares amongst various
competitors.
The company has made significant strategic changes in domestic distribution
especially on Kolkatta to improve upon the technical services. A customer
service center in Ambur has started to function and a similar center is being
planned for Kolkatta.
The company's marketing efforts has become even more aggressive with
participation in important leather fairs in Italy and Hong Kong which also
benefit the domestic markets as these fairs are visited by leading Indian
customers.
During the year,
the company set up a 100% EOU for the production of high speciality leather
chemicals as an independent and separate unit. The same started commercial
production w.e.f. 07.09.2005. This EOU has earned a net profit which is exempt
from the Income Tax.
FIXED ASSETS
- Land
- Buildings
- Plant &
Machinery
- Furniture,
Fixtures & Equipments
- Vehicles
BUSINESS:
The subject is engaged
in manufacturing of leather acrylic emulsion, leather lubricating preparation
and leather finishing preparation.
The commencing
business on 22nd April 1985, N.K. Jian and the Haryana State
Industrial Development Corporation (HSIDC) promote it. The company came out with a public issue in
September 1988 to finance its Rs. 46.700 millions project, to manufacture a
wide range of leather chemicals and auxiliaries (Cap.:1510 tpa). It issued right shares in October 1992 to
finance the export-oriented expansion programme. Located in Jind, Haryana, it went on stream
in April 1988.
Leather chemicals
are used for leather finishing. The
company’s products include fat liquors and finishing chemicals such as binders,
pigments, waxes, feel modifies, lacquers, etc.
It has entered into technical collaborations with two internationally
reputed European companies – A Smit and Zoon,
It commenced
commercial production of cross-linking acrylic binders in 1994-95, mainly for
export.
The company decided
to diversify into the field of high performance pressure sensitive adhesive for
packaging industry, for this a technology transfer agreement has already been
executed by the company with M/s. ICAP Sira Chemicals & Polymers SpA,
In 2000-2001 the
company has undertaken a major expansion to add synthetic tanning agent to its
range of products in view of the emerging demand of the synthetic tanning
agents. The new range of the Fatiliquor
has been widely acvcepted. The company
plans to produce syntans and hope toi commence production by December 2003.
During the year the
company has achieved a turn over of Rs. 133.700 millions against Rs. 139.000
millions for the previous year and net profit of 5.600 0million against Rs.
3.200 millions for the previous year.
The performance of the company was better in the first half of the year
compared to the second half. Though the
turnover of the company during the year has marginally decreased, the net
profit of the year has improved compared to the previous year and the earning
per share has gone up from Rs. 0.66 to Rs. 1.14
The company has
made necessary application to established connectivity with National Securities
Depository (
The shareholders of
the company can keep their holdings in demat form or physical form according to
their convenience after the connectivity is established. The shareholders interested to dematerialise
their shares may contact the company’s share transfer agent.
The company has
maintained its endeavour to provide quality products and services to the
Leather Industry. The company is
following the quality objectives and quality policy as per ISO 9002. Company
manufacturing leather chemicals, footwear adhesives, pressure sensitive
adhesives and textile binders.
The company has
been accredited with "ISO 9002" Certification.
Un ISO – 9002
certific los productos qumicos
Un ISO – 9002 a
certifi des produits chimiques de cuir de fabrication de compagine, des adhisfs
de chaussures, des adhsifs sensibles la pression et des cahiers de textile.
The company has
introduced many new products in fatliquors and finishes and stayed ahead of competitors and in line
with international fashion and trends.
The company’s plan to produce syntans are being followed as planned and
hope to commence production by December, 2003.
The development of various shoe finished will further strengthen the market
position of company’s products in shoe industry.
The company has
already developed Crosslinkable – Aqous aliphatic polyurethane dispersions
(C-APUD) at our R&D lab. The
company is taking various steps for producing the product at the pilot plant scale
and this is expected to be completed by the end of the year 2002-2003 with the
support of Department of Scientific &” Industrial Research (DSIR). At present PUD is not being manufactured in
The company had
embarked upon a major plan to upgrade the quality and range of products in line
with current fashion trends and future applications.
The new range of
Fatliquor (Phosphated and Waterproof) had been widely accepted. The company also achieved the distinction of
producing polyurethane dispersion, which has also been commercialised and is an
import substitute offering.
The company has
also undertaken a major expansion plan to add synthetic tanning agent to its
range of products in view of the emerging demand of synthetic tanning agents.
It imports its
requirements of raw materials from
The medical
instrument business is in collaboration with LEICA-USA and the drug
intermediate facility is a joint venture with DSM-Holland.
The company is in
technical collaboration with the following :
v
ICAP -
SIRA Chemicals & Polymers SPA,
Manufacturers of :
v
Acrylic
Polymers (Water and Solvent Based)
v
Polyurethane
Resins (Water and Solvent Based)
v
Pigment
Dispersions
v
Formulated
Auxiliaries
v
FORBO-HELMITIN
Manufacturers of Adhesives and other chemicals
Company is a joint
venture company with ICAP –SIRA chemicals and polymers S.P. A. of
Company’s strength
in 'Polymerization ‘ and 'Particle Size Control’ technology from ICAP –
AS
PER WEBSITE:
Haryana
Leather Chemicals Limited , a Joint Venture company with ICAP-SIRA Chemicals
and Polymers S. p.A of Italy, is a name, which has become synonymous with the
finest Chemicals for Leather industry - Internationally.
Our
strength in 'Polymerization' and 'Particle Size Control' technology from
ICAP-Italy, is the key behind the coast effective production and finest quality
products. As a further backup of technology HLC has technical collaboration
with Europian industry leaders like Forbo Helmitin GmbH,
'State
of the art technology' and unstinted care at every stage of production ensures
top of the line products from HLC. Our commitment to quality is further backed
by ISO 9002 accreditation at our plant where we adhere to the quality system
specified by ISO 9000 standards. The strategic stock points all over the
country and well-trained technical staff is networked to maintain timely
delivery and services to the customer.
Subject is a
joint venture company with ICAP SIRA -
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.40.84 |
|
|
1 |
Rs.80.47 |
|
Euro |
1 |
Rs.54.32 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
47 |
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 |
|