MIRA
INFORM REPORT
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Report Date : |
19.06.2007 |
IDENTIFICATION DETAILS
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Name : |
INDU PROJECTS LIMITED |
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Registered Office : |
1009, Indu Fortune Fields, 13th Phase, Adjacent to 7th
Phase, KPHB Colony, Hyderabad-500072, Andhra Pradesh |
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Country : |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
07.12.2001 |
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Com. Reg. No.: |
01-38175 |
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CIN No.: [Company
Identification No.] |
U45200AP2001PLC038175 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDI00626D |
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PAN No.: [Permanent
Account No.] |
AAACI18812M |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Subject provides diverse range of Infrastructure and Real Estate
Solutions. |
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 1450000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered/ Corporate Office : |
1009, Indu Fortune Fields, 13th Phase, Adjacent to 7th
Phase, KPHB Colony, Hyderabad-500072, |
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Tel. No.: |
91-40-23780000 (Ex : 9 for reception) |
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E-Mail : |
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Head Office : |
1539, Avenue No.1, Street No.17, Road No.12, Banjara Hills,
Hyderabad-34, |
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Tel. No.: |
91-40-23395721 |
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Fax No.: |
91-40-23395720 |
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Branches : |
Akshayay, 660/1, 100 Street Road, Indira Nagar, Opposite Coffe Day,
Bangalore-38, |
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Tel. No.: |
91-80-41238935/ 41239673 |
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Fax No.: |
91-80-41238936 |
DIRECTORS
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Name : |
Mr. I Shyam P Reddy |
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Designation : |
Managing Director |
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Address : |
Plot No.30, whisper Valley, HS Darga, Hyderabad-8 |
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Date of Birth/Age : |
28.06.1959 |
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Experience : |
26 years |
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Date of Appointment : |
01.04.2002 |
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Name : |
Mrs. I Sundari |
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Designation : |
Whole time Director |
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Address : |
Plot No.30, whisper Valley, HS Darga, Hyderabad-8 |
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Date of Birth/Age : |
07.07.1965 |
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Date of Appointment : |
01.04.2002 |
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Name : |
Mr. B V Bhaskar Reddy |
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Designation : |
Whole time Director |
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Address : |
Eden Banjara Apartments, road No.2, Banjara Hills, |
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Date of Birth/Age : |
18.01.1967 |
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Date of Appointment : |
01.04.2002 |
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Name : |
Mr. Amith A Bbhosale |
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Designation : |
Whole time Director |
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Address : |
21, Bhosale Nagar, Pune, |
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Date of Birth/Age : |
01.06.2005 |
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Name : |
Mr. R R Pujari |
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Designation : |
Director |
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Address : |
204, Marvel Residency, Somajiguda, Hyderabad-82 |
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Date of Birth/Age : |
01.07.1954 |
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Date of Appointment : |
30.09.2005 |
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Name : |
Mr. Y Radhakrishnan |
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Designation : |
Director |
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Date of Birth/Age : |
09.06.1942 |
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Date of Appointment : |
30.09.2005 |
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Name : |
Mr. A J Jaganathan |
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Designation : |
Additional Director |
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Address : |
18, Montgomen Club villas, Emirates Hills, |
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Date of Appointment : |
19.01.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. I Syam P Reddy |
349000 |
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Mr. I Sundari |
339100 |
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Mr. I Sindhura |
361900 |
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Mr. B V Bhaskar Reddy |
53000 |
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Mr. B Mar Reddy |
51000 |
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Ms. S Suma Latha |
3500 |
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Mr. S Sampangi Reddy |
3500 |
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Mr. B Subhash |
1000 |
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Mr. I Siddhartha Reddy |
341500 |
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Ms. Gauri A Bhosale |
500000 |
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Mrs. I Sundari |
344000 |
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Mrs. I Sundari |
347900 |
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Mrs. I Sundari |
330500 |
BUSINESS DETAILS
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Line of Business : |
Subject provides diverse range of Infrastructure and Real Estate
Solutions. |
GENERAL INFORMATION
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Bankers : |
ICICI Bank Limited, Land mark, Branch Office : ICICI Bank Limited, 1-11-256, Begumpet, Hyderabad-500016 |
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Facilities : |
Secured Loans :
Secured Loans : Cash credit/ Working capital demand loan from UCO Bank, ICICI Bank,
State Bank of Term loans from UCO Bank, State Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Karvy & Company Chartered Accountants |
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Address : |
No.2, |
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Associates/Subsidiaries : |
v
M D Realtors Private Limited v
Walden Properties Private Limited v
CHIDCO Private Limited v
Vasanta Projects Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Shares |
Rs.10/- each |
Rs.20.000
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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20.000 |
20.000 |
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2] Share Application Money |
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260.230 |
13.612 |
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3] Reserves & Surplus |
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82.771 |
29.944 |
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4] (Accumulated Losses) |
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0.000 |
0.00 |
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NETWORTH |
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363.001 |
63.556 |
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LOAN FUNDS |
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1] Secured Loans |
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346.009 |
53.980 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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346.009 |
53.980 |
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DEFERRED TAX LIABILITIES |
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12.180 |
5.325 |
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TOTAL |
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721.190 |
122.861 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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122.956 |
53.564 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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10.505 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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138.296 |
72.115 |
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Sundry Debtors |
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378.602 |
90.790 |
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Cash & Bank Balances |
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103.580 |
22.703 |
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Other Current Assets |
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0.985 |
0.155 |
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Loans & Advances |
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387.087 |
76.780 |
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Total
Current Assets |
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1008.550 |
262.543 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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384.831 |
177.812 |
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Provisions |
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35.990 |
15.434 |
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Total
Current Liabilities |
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420.821 |
193.246 |
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Net Current Assets |
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587.729 |
69.297 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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721.190 |
122.861 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2005 |
31.03.2004 |
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Sales Turnover |
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1284.908 |
592.459 |
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Other Income |
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49.240 |
44.378 |
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Total Income |
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1334.148 |
636.837 |
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Profit/(Loss) Before Tax |
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86.419 |
38.112 |
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Provision for Taxation |
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30.855 |
13.727 |
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Profit/(Loss) After Tax |
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55.564 |
24.385 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
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455.712 |
303.903 |
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Administrative Expenses |
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65.908 |
16.764 |
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Raw Material Consumed |
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672.631 |
245.361 |
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Salaries, Wages, Bonus, etc. |
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28.553 |
14.302 |
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Depreciation & Amortization |
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5.205 |
4.301 |
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Other Expenditure |
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19.718 |
14.093 |
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Total Expenditure |
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1247.728 |
598.725 |
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KEY RATIOS
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PARTICULARS |
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31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
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4.16 |
3.83 |
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Net Profit Margin (PBT/Sales) |
(%) |
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6.48 |
5.98 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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7.64 |
12.06 |
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Return on Investment (ROI) (PBT/Networth) |
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0.24 |
5.60 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.11 |
3.89 |
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Current Ratio (Current Asset/Current Liability) |
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2.40 |
1.36 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Name of the company |
INDU PROJECTS
LIMITED |
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Presented By |
Mr. R R Pujari |
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1) Date and description of instrument creating the change |
Deed of hypothecation dated the 10.08.2004 executed by Indu Projects Limited (therein and hereinafter referred to as the borrower) in favour of ICICI Bank Limited |
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2) Amount secured by the charge/amount owing on the securities of charge |
Secured working capital facilities not exceeding Rs.55.000 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
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4) Gist of the terms and conditions and extent and operation of the charge. |
In consideration of ICICI having granted/ agreed to grant to the borrower the facilities under the agreement and declaration by the borrower, inter alia as follows : Covenant by the borrower to comply/ to ensure compliance with all the terms and conditions set out in the credit facility agreement dated 10th august entered between he borrower and ICICI, as modified amended/ renewed/ supplemented from time to time The borrower shall pay/ repay all amounts in respect of the facilities and pay interest and all other monies in the manner set out in the agreement and the other transition documents. The assets were thereby hypothecated inter alia to ICICI as and by way of pari passu first charge along with UCO Bank., as security for and be charged with the repayment of the facilities all interest and other monies payable by the borrower to ICICI as specified in the agreement and the other transaction documents. The borrower to keep the assets in marketable and good conditions and also insured as provided in the deed of hypothecation/ the agreement. Power of entry, power to take charge and / or possession of, seize, recover, receive, appoint receivers of and remove and/or sale by auction or private contract, dispatch for realization or otherwise dispose of or deal with all or any part of the assets etc. as provided in the deed of hypothecation. All other terms and conditions as contained in the deed of hypothecation. |
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5) Name and Address and description of the person entitled to the charge. |
ICICI Bank Limited, Land mark, Branch Office : ICICI Bank Limited, 1-11-256, Begumpet, Hyderabad-500016 |
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6) Date and brief description of instrument modifying the charge |
Letter of amendment dated 24.10.2005 executed by the borrower in favour of ICICI |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Rate of interest on CC Account : 2.00% below ICICI Benchmark adjusted rate p.a. + Cash credit premium p.a. i.e. 9.50%p.a. BG Commission Charges : 0.25% p.a. + 1.00% p.a. handling charges All the powers, provisions, agreements, declarations and covenants contained in or implied by the principal deed of hypothecation including the power of sale, power to appoint receiver and power of entry will remain the same. |
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Corporation identity number or foreign company registrations number of the company |
U45200AP2001PLC038175 |
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Name of the company |
INDU PROJECTS LIMITED |
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Address |
1009, Indu Fortune Fields, 13th Phase, Adjacent to 7th
Phase, KPHB Colony, Hyderabad-500072, |
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This Form is for |
Creation of charge |
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Type of Charges |
Movable property |
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Particular of the charge holder |
ICICI Bank Limited Landmark Alkapuri, Baroda-390015, |
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Nature or description of the instrument creating charge |
Unattested deed of hypothecation for purchse of transit mixers 5
numbers. |
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Date of the instrument creating charge |
12.02.2007 |
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Amount Secure by the charge |
Rs.4.652 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of interest : 10.25% Terms of repayment : Loan to e reapid in 35 monthly installments, commencing from
05.03.2007. Margin Rs.0.517 millions i.e. Rs.0.103 millions 5 numbers in transit mixers Extent and operation of the charge The borrower shall keep the assets in good, marketable condition and
insured as stipulate dbny the bank Security created by this charge shall continue and remain in full
force till the time the borrower repays the amount Such other terms and conditions as per the unattested deed of
hypothecation |
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Particulars of the Property charged |
Transit mixer 5 numbers, sub model AM6SHN |
Review of
Operations :
The business performance of the company during the year has been very
good, financially the company has achieved a 116% growth in contract revenue
from Rs.592.500 millions to Rs.1284.000 millions. Gross profit for the year has
increased by 138% to Rs.204.900 millions. The profit after tax has shown an
increase of 127% from Rs.24.400 millions in 2003-04 to Rs.55.600 millions this
year. The net worth of the company for the year is at Rs.366.100 millions as
against Rs.63.500 millions last year, registering a growth of over 450%. The
EPS translates to Rs.277.800 millions as compared to rs.121.900 millions during
2003-04.
Th company has successfully completed
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General civil works for 10.25MW chundhidoddi hydro
scheme in
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10storied mass housing project – apartments at
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Shriram Spandana, Luxury apartments at
Business projects
The company is gearing its resources to march forward and take up many
more projects in the immediate future including : Development of 74 acre
software park at Hyderabad, Biotech/ software/ industrial parks development;
BOT projects, partnering FDI s in Urban infrastructure in India; tie up with
global partners for know how and other synergy benefits; promote training and
R&D facility to adapt pre engineer/ pre fabricated technologies in
projects; Develop structural models for hospitality; providing end to end
solutions to hospitals, education institutes, industrial units etc. building
alliances, partnerships and JVs for accelerated growth.
The company would gradually diversify its services to newer areas and
enhance the portfolio of services available to its future clients. It intend s
to expand its portfolio to include other segments of core infrastructure
development like ports, water supply and sanitation projects, pipeline
construction etc.
The company plans to enter the Build – Operate Transfer segment, which
is one of the new approaches adopted by the India Government for building new
infrastructural facilities. BOT projects usually offer attractive returns; with
the average equity IRR being close to 20%.
Another advantage is the comparatively lower competition for BOT
projects, due to inability of smaller players to invest large amounts of
capital on a long term basis (15-20 years). The areas whch have significant BOT
opportunities are : roads, ports, railways etc.
The company envisages being a pro change organization, which can adopt
to the evolving environment in the infrastructure industry. In order to become
future fit, in terms of capability, outlook and technology, the company is
taking several initiatives. As a first step in this direction, it is setting up
a R&D institute and educational institute. The educational institute would
enable the company to build a competent manpower reservoir which can adequately
adapt to the changing market environment. The R&D institute would enable the
company to benchmark to best practices in the industry. Further, it would
enable the company to develop innovative solutions toi serve its global
clientele.
The company has already appointed Ernst and young, a leading global
consultant as advisors for planning its future strategies. The company is also
equipping itself with high end information technology tools like ERP etc.
The company believes in partnership/ strategic alliances model for
developing its core competencies.
The company had decided to concentrate on commercial and residential
buildings (core structures) to achieve benefits of economic scale of operation
and better leverages ofexisting resources.
A number of projects that are in the pipeline are :
IT Parks
Symphony – IT park at
Cherry Hills – IT park in
Pine Vallery – IT Park at
Irrigation
Projects
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Sambarkund Irrigation Project,
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Polavaram Irrigation Project, Andhra Pradesh
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Tadipudi Lift Irrigation Scheme, Andhra Pradesh
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Railway Projects
Flash butt welding contracts for 650 km track from India Railways
Townships
Construction of residential township (Fortune fields) at Kukatpally,
The company is poised to acjhieve substantial growth in 2005-06.
Subsidiary Company
The directors informed that the company has two subsidiaries namely
Vasantha Projects Private Limitedc and Cyberbad Hitech Integrated Development
Corporation Private Limited.
Fixed Assets :
v
Buildings
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Plant and machinery
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Heavy vehicles
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Light vehicles
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Office equipments
Contingent
Liabilities not provided for :
v
Counter guarantee given to banks for Bank guarantee
issued by the banks on behalf of the company outstanding : Rs.82.567 millions
v
Capital commitments not provided for on account of
net of advance current year Rs.4.256 millions.
Website Details :
Company Profile
Incorporated in 2001, Subject
is a leading player in infrastructure and real estate domain. Headquartered in
The Company is an entrepreneur driven entity promoted mainly
by Mr. I. Syam Prasad Reddy.
Avinash Bhosale Group,
Pune, a highly successful and reputed group involved in infrastructure sector
is the other main promoter.
The other major stakeholder is Mr. B.V. Bhasker
Reddy. A hands-on entrepreneur involved in various infrastructure
projects.
Board of Directors
Subject believes that success of a business is a reflection
of the quality of its organizational strengths and creativity of its people. Subject is a people first company with
strong commitment, corporate values and governance principles.
The Board of Directors of Subject are :
R. C. SINHA (IAS Retd.), Director
Mr. Sinha has a M. A. (Eco) L.L.B. and a Post Graduate
Diploma in Urban Development from
Mr. Sinha entered the Indian Administrative Service in 1962.
And since then he has held numerous posts in state governments. Most noteworthy
of them are:
Mr. Sinha was Featured in Business Today's the “6 - Those Who Made a Nation
Turn Around” in their Tenth Anniversary Issue of 20th January 2002. He received
a special felicitation for outstanding work in construction industry at the XIX
All India Convention of Builders' Association of India. He was also awarded MAN
of the Year by Accommodation Time. He is a recipient of C. D. Deshmukh Award as
“Administrator” by the President of India.
A. J. Jaganathan, Director
With a background rooted in Banking, Mr. Jaganathan has
served in Industry, Venture Capital and Early Stage equity funding (private
funding sources); and currently in Property Development.
Career highlights include that of Deputy Chief Executive for
the South Asian operations of Standard Chartered Merchant Bank (SCMB) and a
Director of SCMB in
N. Prasad, Director
Mr. Prasad is currently the Executive Chairman of Matrix
Labs. He holds Masters Degrees in Science and Business Administration.
Under the leadership of Mr. Prasad, Matrix has successfully
acquired five domestic pharmaceutical companies including three FDA approved
facilities, and has completed four global annexations in the last 4 -5 years.
Thanks to the initiatives of management team led by Mr.
Prasad, Matrix won an award “Fastest Wealth Creator” for the second consecutive
year in 2005 by Motilal Oswal / CNBC.
For year 2005, Mr. Prasad received an award from Government
of India for the Highest Achievement in Research & Development in
Pharmaceutical Field in
J. A. Chowdary, Director
Mr. Chowdary is currently the President & Managing
Director of PortalPlayer (
He is closely associated with organizations such as the TIE,
AMCHAM, SME, HYSEA, BHEL, ISRO and the Japan Business Council.
Mr. Chowdary is the recipient of NRDC's meritorious invention
award and the HMA's Silver Jubilee award.
Syam Prasad Reddy, Managing Director & CEO
Mr. I. Syam Prasad Reddy has extensive experience in
handling diverse aspects of the construction industry and is backed by nearly 20
years experience as the architect of the success of IVRCL which he co-promoted
in.
Ram Pujari, Director
& CFO
He has 25 years of experience in the field of finance and
management which includes a four year stint in
B. V. Bhaskar Reddy, Director – Business Development
Mr. Bhaskar, an MBA, has several years of experience
in construction industry. He started his career with IVRCL as General
Manager (Projects) and spent more than 10 years with them
Team
Subject believes that the success of an organization is a
reflection of the commitment and initiative of its people. Subject has reached
many milestones due to the innate capabilities and drive of its Directors and
employees.
Senior management
Mr. Pardhasaradhy is heading Human Resource
Division.
He has wide work experience in HR, communication and
training for over 17 years in industries of repute in
Mr. Kesava Reddy has 23 years hands-on
experience in execution of infrastructure projects, liaising with multilateral
funding agencies and project management.
Business Model
The Company provides diverse range of Infrastructure and
Real Estate solutions.
Currently the entire business of Subject is organized into
following categories :
Realty SBU.
Retail Infra SBU.
Special Projects & BOTs SBU.
Construction SBU.
Core Infra SBU.
Other Services
The Company also provides end-to-end services to its clients
to facilitate faster execution of projects. The company utilizes its local
knowledge to assist clients in executing projects from conceptualization
stage to completion.
Financial Performance >>>
In just around four years, Subject has achieved superlative
growth both in terms of turnover and profitability. The Company's whose
turnover for March 2002 was INR13.5 millions has clocked INR 3118 millions for
the year ending March 2006. It has earned the recognition of being one of the
leading players in the urban infrastructure sector.
Financial information for the last four years has been
provided in the table below :
|
(
INR Million 2005-06) |
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Financial
Year |
2002-03 |
2003-04 |
2004-05
|
2005-06
|
|
Sales |
166.15 |
592.46 |
1284.91 |
3122.15 |
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PAT |
7.88 |
24.38 |
55.56 |
257.90 |
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Net worth |
42.20 |
63.55 |
363.00 |
1222.29 |
Reddy’ to give back to society
Few people outside the incredibly opaque construction
industry had heard of I. Syam Prasad Reddy, till May this year. That’s when
Indu Projects Ltd., a company which Mr Reddy, 46, founded four years ago —said
it will be gifting U.S. $550,000 to the Indian School of Business.
The purpose of the grant: To fund a Research Chair for ‘Real
Estate and Urban Studies’. Indu Projects will be gifting Rs 5.000 millions per
year for five years under the grant.
Says Mr Reddy, “The idea for the grant came during a
conversation I had a with Dr. V. Chandrasekhar, executive director of the
Wadhwani Centre for Entrepreneurship Development at the ISB, earlier this year.
Dr Chandrasekhar felt that as the real estate market in
But who is Syam Prasad Reddy? Depends on who you ask. One
school of thought says that Mr Reddy has been able to grow his business, which
reported Rs 160 millions in revenues in the first year of operation. Others
argue that Indu Projects came into the market at the right time, just when the
real estate market was at its inflec tion point in
Ask Mr Reddy for the secret of IPL’s dramatic growth, and he
says, “They have a business model, which is knowledge-driven. More importantly,
they out source nearly 50 per cent of the construction, the brick and mor tar
work of their business, and bring in partners who can pro vide us technology or
other expertise.
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.40.70 |
|
|
1 |
Rs.80.80 |
|
Euro |
1 |
Rs.54.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|