MIRA
INFORM REPORT
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Report Date : |
15.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
FAG
BEARINGS INDIA LIMITED |
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Registered Office : |
Nariman
Bhavan, 8th Floor, 227 Backbay Reclamation, Nariman Point, Mumbai
– 400 021, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
27.04.1962 |
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Com. Reg. No.: |
12340 |
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CIN No.: [Company
Identification No.] |
L29130MH1962PLC012340 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDF00097G BRDF00184C |
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PAN No.: [Permanent
Account No.] |
AAACF3357Q |
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Legal Form : |
It is
a public limited liability company. The company’s shares are listed on the
Stock Exchanges. Subject
is a subsidiary of FAG Kugelfischer Georg Schaefer AG, |
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Line of Business : |
Manufacturing
and Marketing of ball and roller bearings and components. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 9900000 |
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Status : |
Good |
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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, respectable and resourceful businessmen. Their
trade relations are reported as fair. Payments are usually correct and as per
commitments. The
company can be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long-run. |
LOCATIONS
|
Registered
Office : |
Nariman Bhavan, 8th Floor 227,
Backbay Reclamation Nariman Point Mumbai - 400 021 |
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Tel. No.: |
91-22-22022144 /
362/ 166 |
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Fax No.: |
91-22-22027022 |
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E-Mail : |
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Website : |
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Head Office
& Works : |
Maneja, Vadodara
- 390 01 |
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Sales Offices
: |
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Branches : |
Located
at : Ø
Kolkata, West Tel. No. 91-33-22467602 Fax No. 91-33-22491587 Ø
Chennai, Tamil Tel. No. 91-44-28271712 /28275077 Fax No. 91-44-28279497 Ø
Mumbai, Tel. No. 91-22-22022166 / 22022144 Fax No. 91-22-22027022 Ø
Tel. No. 91-11-25726862 / 26730284 Fax No. 91-11-25726327 Ø
Pune, Tel. No. 91-20-6691989 / 6122229 |
DIRECTORS
|
Name : |
Mr. Avinash P. Gandhi |
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Designation : |
Chairman |
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Name : |
Mr. Biswarup Dhar |
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Designation : |
Managing Director |
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Name : |
Dr. Vidya Sagar |
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Designation : |
Director |
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Name : |
Mr. Hans-Juergen Goslar |
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Designation : |
Director |
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Name : |
Mr. Dietmar Heinrich |
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Designation : |
Director |
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Name : |
Mr. Frank Huber |
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Designation : |
Director |
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Name : |
Mr. Bernhard Steinruecke |
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Designation : |
Director |
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Name : |
Mr. R. Sampath Kumar |
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Designation : |
Director |
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Name : |
Mr. Yezad S. Kapadia |
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Designation : |
Director |
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Name : |
Mr. Kamlesh C. Tapadar |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Moreshwar D. Garde |
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Designation : |
Nominee of QIC |
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Name : |
Mr. Satish Patel |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Raj Sarraf |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Individuals |
2586701 |
15.57 |
|
Companies |
9312278 |
56.04 |
|
Financial
Institutions and Banks |
1625 |
0.01 |
|
Insurance
Companies and LIC |
421732 |
2.54 |
|
Mutual Funds and
UTI |
1987007 |
11.95 |
|
Foreign
Institutional Investors |
2307927 |
13.89 |
|
Total |
16617270 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Marketing of ball and roller bearings and components. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Manufactured |
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(i) Ball and
Roller Bearings |
Nos. |
43338000 |
44140102 |
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(ii) Manufactured
Components |
Nos. |
-- |
231290 |
|
Trade $$ |
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|
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Bearings,
Components of Railway |
Nos. |
272521 |
783.500 |
|
Axle Box Housing, Re-Railing Equipment and its components |
Nos. |
-- |
316.500 |
GENERAL INFORMATION
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No. of Employees : |
980 |
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Bankers : |
Ø
Union
Bank of Ø
State
Bank of Ø
ICICI
Bank Limited Ø
HDFC
Bank Limited Ø
Deutsche
Bank |
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Facilities : |
-- |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Deloitte Raskins & Sells, Chartered
Accountants |
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Address : |
Mumbai, |
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Membership : |
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Collaborators : |
Schaeffler Group, |
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Associates/Subsidiaries
: |
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Holding
Company: |
FAG Kugelfischer
Georg Schaefer AG, |
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Joint Venture:
|
FAG Roller
Bearings Private Limited, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20,000,000 |
Equity Shares |
Rs. 10 each |
Rs. 200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16,818,270 |
Equity Shares |
Rs.10 each |
Rs. 168.200 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
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|
|
|
1] Share Capital |
166.200 |
166.200 |
166.200 |
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|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves &
Surplus |
2310.100 |
1649.500 |
1238.100 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
2476.300 |
1815.700 |
1404.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
111.900 |
0.400 |
|
|
2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL BORROWING
|
0.000 |
111.900 |
0.400 |
|
|
DEFERRED TAX
LIABILITIES |
61.900 |
78.200 |
90.300 |
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|
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TOTAL
|
2538.200 |
2005.800 |
1495.000 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1112.300 |
831.100 |
807.300 |
|
Capital work-in-progress
|
259.900 |
239.200 |
59.500 |
|
|
Capital
Advances |
19.800 |
32.700 |
1.400 |
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INVESTMENT
|
26.500 |
27.200 |
27.200 |
|
DEFERREX TAX ASSETS
|
10.100 |
9.900 |
6.700 |
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CURRENT ASSETS, LOANS &
ADVANCES
|
|
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Inventories
|
918.700
|
695.200
|
592.200
|
|
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Sundry Debtors
|
858.200
|
656.000
|
496.600
|
|
|
Cash & Bank Balances
|
122.900
|
79.800
|
25.800
|
|
|
Other Current Assets
|
2.100
|
3.100
|
0.000
|
|
|
Loans & Advances
|
253.700
|
256.800
|
179.500
|
Total Current Assets
|
2155.600
|
1690.900
|
1294.100 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
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|
Current Liabilities
|
883.200
|
656.900
|
563.400
|
|
|
Provisions
|
162.800
|
168.300
|
137.800
|
Total Current Liabilities
|
1046.000
|
825.200
|
701.200
|
|
Net Current Assets
|
1109.600
|
865.700
|
592.900
|
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
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|
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TOTAL
|
2538.200 |
2005.800 |
1495.000 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 |
31.03.2005 |
31.12.2004 |
|
Sales Turnover
|
5420.400 |
4083.200 |
3304.400 |
|
|
Other Income |
108.700 |
68.700 |
0.000 |
|
|
Total Income |
5529.100 |
4151.900 |
3304.400 |
|
|
|
|
|
|
|
Profit/(Loss) Before Tax
|
1094.500 |
677.600 |
434.000 |
|
Provision for Taxation
|
346.000 |
180.200 |
125.200 |
|
Profit/(Loss) After Tax
|
748.500 |
497.400 |
308.800 |
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Earnings in Foreign Currency : |
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|
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|
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Service income |
69.000 |
27.800 |
|
|
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FOB value of
exports |
847.800 |
720.100 |
|
|
|
Exchange
gain(net) |
0.000 |
8.700 |
|
|
Total Earnings |
916.800 |
756.600 |
451.900 |
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Imports : |
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|
|
|
|
|
Raw Materials |
307.100 |
278.900 |
|
|
|
Products Purchased for sale |
571.400 |
328.300 |
|
|
|
Stores & Spares |
60.100 |
46.800 |
|
|
|
Capital Goods |
287.200 |
227.000 |
|
|
Total Imports |
1225.800 |
881.000 |
579.700 |
|
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|
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Expenditures :
|
|
|
|
|
|
Manufacturing
and other expenses |
4239.000 |
3297.400 |
|
|
|
Depreciation /
Amortisation |
183.000 |
168.300 |
2870.400 |
|
|
Interest(Net)
[after considering interest on income tax liability for the prior years Rs. 13.3
million |
12.600 |
8.600 |
|
|
Total Expenditure
|
4434.600 |
3474.300 |
2870.400 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
31.03.2007 |
|
Type |
|
|
1st
Qtr |
|
Sales
Turnover |
|
|
1590.600 |
|
Other
Income |
|
|
3.500 |
|
Total
Income |
|
|
1594.100 |
|
Total
Expenditure |
|
|
1219.600 |
|
Operating
Profit |
|
|
374.500 |
|
Interest |
|
|
[3.000] |
|
Gross
Profit |
|
|
377.500 |
|
Depreciation |
|
|
46.100 |
|
Tax |
|
|
109.700 |
|
Reported
PAT |
|
|
220.000 |
Notes:
200703
Quarter 1 –
Tax Includes Provision for Current Tax Rs 109.50 million
Deferred Tax Rs 1.70 million Fringe Benefit Tax Rs 1.20 million Taxation adjustment
for earlier years (net) Rs (1.00) million EPS is Basic & Diluted Status of
Investor Complaints for the quarter ended March 31, 2007 Complaints Pending at
the beginning of the quarter Nil Complaints Received during the quarter 04
Complaints disposed off during the quarter 04 Complaints unresolved at the end
of the quarter Nil 1. The Company has adopted from January 01, 2007 Accounting
Standard (AS) 15 (revised 2005) 'Employee Benefits' issued by the Institute of
Chartered Accountants of India. The impact of this on the results for the
quarter is not material. The adjustment against the opening balance of the
General Reserve, under the transitional provisions of the above referred
Standard, would be made at the year end. 2. The business of the Company falls
under a single segment i.e. 'Ball / Roller Bearings and related components' for
the purpose of Accounting Standard AS-17. 3. The above financial results were
reviewed by the Audit Committee and approved by the Board of Directors at its
meeting held on April 26, 2007. 4. Previous period's figures have been
regrouped wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
Debt
Equity Ratio |
0.03 |
0.04 |
0.10 |
|
Long
Term Debt Equity Ratio |
0.00 |
0.00 |
0.07 |
|
Current
Ratio |
1.82 |
1.66 |
1.56 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.05 |
1.72 |
1.43 |
|
Inventory
|
7.59 |
7.19 |
6.86 |
|
Debtors |
8.09 |
8.03 |
7.22 |
|
Interest
Cover Ratio |
42.15 |
67.11 |
24.46 |
|
Operating
Profit Margin (%) |
21.30 |
18.72 |
16.88 |
|
Profit
Before Interest and Tax Margin (%) |
18.31 |
15.08 |
12.27 |
|
Cash
Profit Margin (%) |
15.03 |
13.99 |
12.98 |
|
Adjusted
Net Profit Margin (%) |
12.04 |
10.35 |
8.37 |
|
Return
on Capital Employed (%) |
51.50 |
42.54 |
32.75 |
|
Return
on Net Worth (%) |
34.75 |
30.23 |
24.57 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.[0.01] |
|
Low |
Rs.[0.01] |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
FAG Bearings India Limited, the Indian subsidiary of German major
- FAG Kulgelfishcer Georg Schafer AG, is into manufacture of ball bearings,
cylindrical roller bearings and spherical roller bearings which are used in
Automobile and Engineerg industries. The company which was incorporated in
April 1962 as Precision Bearings (
The company which started with technical collaboration with Norma Hoffman, US
has entered into a technical-cum-financial collaboration with FAG Kugelfischer
Georg Schaefer and its associate company GUJ Jaegr in 1966-67. FAG,
Apart from Ball and Roller(both Cylindrical & Spherical) bearings its
product range also includes taper roller bearings, needle roller bearings. In
the Spherical roller bearing segment the company is the market leader with
around 56% of market share and the company is also has an significant
marketshare of around 35% and 19% in the cylindrical roller bearing and ball
bearing segment respectively. The company caters to OEM market, replacement
market and export market.
The company came out with an Rights Offer in April, 1991, to part-finance its
modernisationa and technology upgradation projects. It has put up a
full-fledged Research and Development unit in a separate new building. It's EOU
(100%) unit set up in collaboration with FAG Kugelfishcer Georg Schaefer,
The company is taking up an quality improvement programme from the year 2000
under which the company has spent Rs.341.400 Millions over the last two years
and installed new machines and the rebuilt the other machines.
The company has gone for expansion during the year 2002 in respect of Ball
& Roller Bearings.The installed capacity of Ball & Roller Bearings has
been increased by 50000(Nos).
FAG
Complying with SEBI order, INA and FAG, Germany had made an open offer @
Rs.41.22 including interest.306 shareholders offered 54378 shares in the open
offer and all these shares have been transferred to FAG Kugelfishcher Georg
Schaefer AG, Germany in January & February 2004.Their holdings has gone
upto 51.33%.
The company has expanded the installed capacity of Ball & Roller Bearings
during the year 2003 by 3178000(Nos) and with this expansion the total capacity
has been increased to 25228000(Nos).
During the year 2004, the company has increased its installed capacity of Ball
& Roller Bearings by 1153000 (Nos). Ultimately, the total installed
capacity stood as 26381000 (Nos).
FINANCIAL AND OPERATIONAL PERFORMANCE:
The Company's sales have been consistently growing at a rate better than the
growth of the bearing industry in
Gross Operating Profit increased by 51% (2005: 42.2%). Profit Before Tax (PBT)
was higher by 61.5% (2005: 58.4%) and Profit After Tax (PAT) was higher by
54.2% (2005: 62.7%).
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS:
Indian Bearing market size is estimated at Rs.41 billion. Approximately one
third of this demand is catered through imports and the balance through
indigenous production. The sales of the organised Bearing Industry in
The fortune of the Bearing Industry in
OEM industries, such as two-wheeler, are facing price competition in their own
markets and continue to exert price pressure on the local bearing suppliers. In
face of the accelerated demand from the automotive industry and other sectors
like steel, power & heavy engineering due to general economic revival, the
market environment is favorable for the Bearing Industry.
OPPORTUNITIES AND THREATS:
Opportunities:
Indian economy seems to grow at 9% in the FY 2007 supported by strong growth in
Industry and in Service Sector. Due to the continued momentum in the economic
growth (supported by over 10% growth in the industry), the demand outlook of
Bearing Industry seems to be very positive. The Bearing Industry is expected to
grow over 10%. The Company's focus on expansion in capacity would result in
improvement in the cost of production and would also enable the Company to
improve its market share even under the competitive market conditions.
Threats:
The Company with a brand of very high repute is prone to the menace of
counterfeit and spurious manufacturers, which has increased over the years. The
Company has been very conscious about such developments and has undertaken
specific measures like 'Technology and Brand Safeguards with the help of detective
and intelligence agencies, Quality Assurance, etc.' to overcome spurious
activities.
The customs duty is expected to reduce further, which may result in cheaper
import of bearings and also put pressure on domestic Bearing Industry due to
increase in competition from the international markets. Increase in prices of
steel, which is the basic raw material may put pressure on cost.
SEGMENT WISE PERFORMANCE:
The business of the Company falls under a single segment i.e. 'Ball/Roller
Bearings and related components' for the purpose of Accounting Standard
AS-17.
OUTLOOK:
The continued momentum in the economic growth supported by strong industrial
growth will undoubtedly unwrap opportunities of growth in the Bearing
Industry.
The Indian automotive sector is one of the fastest growing market. World majors
are focusing on launching number of new utility vehicles and two wheelers in
upcoming years. The Company expects continuous increase in demand from
Automobile and other industries. The strong and consistent financial
performance, quality consciousness and customer reliance unquestionably have
been the areas of their strength, which sprout a sense to appear in the market
as strong competitor to grab these growth opportunities.
FINANCE:
A phenomenal performance from all corners has made this year distinguished
compared to previous years, wherein the Company has crossed the turnover of Rs.
5000 Millions. This has led to the Company emerging as a strong financial
entity.
Whereas, sales during the year is recorded up by 32.3% over 2005, due to
judicious utitlisation of resources, they were able to achieve a remarkable
increase in net profit by 54%.
The Company has brought down the debt to nil, which has resulted in substantial
improvement in the liquidity. The Company's continued focus on optimising its
working capital has also supported the liquidity position. Due to optimization
in utilisation of resources, the return on capital employed has improved to 46%
(2005: 36%).
HUMAN RESOURCES AND INDUSTRIAL
RELATIONS:
The Company recognises Human Resources as its biggest strength, which has
resulted in getting acknowledgement that the Company is the right destination
where with the growth of the organisation, value addition of individual employees
is assured. This establishment has been contributing a lot to the State by
generating new employment opportunities and in attracting talent. With the end
of this year the employees' strength has reached 1157.
During the course of last year, the Company conducted training programmes for
its employees. The Company has a strong policy for reward and bonus to
performing employees. The Company is also providing them a chance to explore
their talents by encouraging and assisting them to appear in national level
competitions. This has been proved in the 20th National Quality Circle
Competition recently organised by NCQC at
Industrial relations during the year continued to be cordial and peaceful. The
Directors place on record the excellent co-operation and contribution made by
the employees at all levels of the organization to the continued growth of the
Company.
Information as per Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particular of Employees) Rules, 1975 forms part of this Report. The
Managing Director is the only employee covered by these Rules and details of
his remuneration are covered in the Annual Report.
FIXED
ASSETS
Ø
Intangible assets
Ø
Software upgradation - acquired
Ø
Lumpsum fees for technical knowhow
Ø
Tangible assets
Ø
Land-freehold
Ø Buildings and
roads
Ø
Plant and Machinery
Ø
Tubewells
Ø
Electrical Installations
Ø
Furniture, fittings & equipment
Ø
Motor vehicles
It is in trade terms with :
Ø
S. K. Industries
Ø
Aval Engineering Works
Ø
Amit Engineering
Ø
Evergreen Engineers
Ø
Pooja Industries
Ø
Sumit Packaging
Ø
Vijay Enterprise
Ø
Kansara Brothers
Ø
Ambica Industries
Ø
Raju Engineering
Ø
Precision Products
AS PER
WEBSITE
FAG Bearings India Limited, a
member company of FAG group of
The company manufactures a
very wide range of bearings conforming to the stringent international quality
standards.
FAG
FAG
In 1997, FAG Bearing India
Limited set up the country's first 100% EOU for bearings. Bearings produced at
the EOU plant have gained ready acceptance and recognition of customers located
in Europe,
FAG's joint venture company - FAG Roller Bearings Private Limited - produces
taper roller bearings at Chakan near Pune.
1962 Incorporated as Precision Bearings India Limited.
1986 The company name changed to FAG Precision Bearings Limited.
1993 Became first Indian Bearing company to achieve ISO 9001 certification.
1997 EOU Project for Cylindrical roller bearings inaugurated.
1998 Became first Indian Bearing company to achieve QS 9000 certification.
1999 Change in name to FAG Bearings India Limited. The company achieved ISO 14001 certification.
2000 Set up
2001 Launched Joint Venture company FAG Roller Bearings Private Limited to manufacture taper roller bearings.
FAG believes that only by engaging in continuous process and product oriented innovation, will the company succeed in the future. Therefore, to improve its position in the bearing industry, where the competition is stiff, FAG implemented Continuous Improvement Process (CIP), popularly known as CIP-culture.
CIP is a concept based on a continuous self-sustaining, learning and improvement process.
The
CIP supports FAG on its course to becoming a high performance organization and
ensures that the best practices are implemented in all areas of operations.
The
CIP helps step up the pace of the optimization process geared to achieve the
defined goals.
CIP
makes FAG quicker and flexible. With CIP program, they can recognize target
deviations even more quickly and take immediate counter measures.
The
company launched the program "CIP for Production" in 1998, giving
each of the employees the freedom to think and try new ideas. In addition, the
company launched the program "CIP for Sales" and "CIP for
Service" in 1999 and 2000 respectively.
In order that FAG Bearings India Limited is supplied the best quality material, the company follows a very stringent three-stage process for approval of any steel supplier. The same includes :
Product approval (Both by FAG Bearings India Limited and FAG-Germany).
Quality system approval (By FAG Bearings India Limited).
Process approval (Jointly by FAG Bearings India Limited and FAG-Germany).
After successful approval
of the above, the supplier should also be in `A' (Very good) category in terms
of both the vendor quality and delivery rating evaluation done by FAG Bearings
India Limited every three months.
Hence, FAG Bearings India Limited requires that any
material supplied to FAG Bearings India Limited be strictly in accordance with
FAG Bearings India Limited guidelines.
For details on FAG Bearings India Limited specifications
and guidelines on their materials, a supplier may contact the Materials
Management department, FAG,
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.40.76 |
|
|
1 |
Rs.80.67 |
|
Euro |
1 |
Rs.54.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
|