MIRA
INFORM REPORT
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Report Date : |
23.06.2007 |
IDENTIFICATION DETAILS
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Name : |
MANAPPURAM GENERAL FINANCE AND LEASING LIMITED |
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Registered Office : |
V 104, Manappuram House, Valapad P O, Trichur-680567, Kerala |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
15.07.1992 |
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Com. Reg. No.: |
6623 |
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CIN No.: [Company
Identification No.] |
L65910KL1992PLC006623 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNM00410E |
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PAN No.: [Permanent
Account No.] |
AABCM6882E |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on stock
exchanges. |
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Line of Business : |
Subject is engaged in the business of providing financial services. |
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 700000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
V 104, Manappuram House, Valapad P O, Trichur-680567, |
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Tel. No.: |
91-0487-2399306, 2391892 |
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E-Mail : |
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Branches : |
Located at : v
Ernakulam v
Thrissur- Naikkanal v
Guruvayur v
Triprayar v
Tirur v
Manjeri v
Palakkad v
Kalpatta v
Kozikkode – V M v
v
Kozhikkode – West Hill v
Thamarassery v
Ramanattukara v
Koyilandi v
Vadakara v
Kannur v
Kannur- Talap v
Kannur – Iritty v
v
Thaliparamba v
Thalassery – Kannur v
Kasargode v
Kanhangad v
v
Kollam v
Thiruvananthapuram v
Irinjalakuda v
Coimbatore- Gandhipuram v
Chennai – Theyampet v
Chennai- Anna Nagar v
Chennai – Vadapalani v
Bangalore- Ulsoor v
v
Mangalore v
Mumbai – Nerul v
Mumbai- Sakinaka v
Mumbai – Kalyan v
Kannur – Payyannur v
Kasaragode – Nileswar v
Kasaragode – Manjeshwar v
Vatanappally v
Perinjanam v
Chavakkad v
Kodungallur v
Chentrappinni v
West Fort v
Peringottukara v
Olarikkara v
Engandiyur v
Chalakudy v
Wadakkanchery v
Kunnamkulam v
Ollur v
Chelakkara v
Punnayurkulam v
Mala v
Kottakkal v
Vadakkanchery v
Perinthalmanna v
Angamaly v
Chittoor v
Valanchery v
Pattambi v
Paravoor v
Nilambur v
v
Ramanathapuram – v
Selam v
Sulthanpet- Palakkad v
Tirupur- Coimbatore v
Shivajinagar – v
Yeshwanthpur- Bangalore v
Madiwala – v
Edappal – Malappuram v
Thambaram – Chennai v
Porur- Chennai v
Old Washermanpet- Chennai v
Erode v
Namakkal v
Musharabad – v
v
Secandrabad |
DIRECTORS
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Name : |
Mr. V.P. Nandakumar |
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Designation : |
Chairman and Managing Director |
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Qualification : |
M.Sc., CAIIB (Part I). |
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Experience : |
Chief Promoter of Manappuram Group of Companies Served the Banking Industry in various Capacities for a period of 7
years. Member of Equipment Leasing Association ( |
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Name : |
CAP.G Wales |
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Designation : |
Non -Executive Director |
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Qualification : |
B.Sc.,F.C.A. Chartered Accountant |
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Name : |
Mr.B.N.RaveendraBabu |
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Designation : |
Non - Executive Director |
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Qualification : |
M.Com.. I.C.M.A(Inter). Expertise in Information Technology. |
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Experience : |
Served 12 years in a senior position in the Finance and Accounts
department of M/s Blue Marine at UAE. |
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Name : |
Dr. K.K. Mohandas |
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Designation : |
Non - Executive Director |
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Qualification : |
MBBS, M.S. Medical Practitioner, Managing Partner of Thrissur. |
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Name : |
Mr. Juguna G Panikamparambil |
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Designation : |
Non - Executive Director |
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Qualification : |
B.Tech (IIT), M.Tech ( |
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Experience : |
Have 18 years experience as Senior Production Engineer and Senior
Business Planning Co-ordinator with M/s Dubai Petroleum Company and Abu-Dhabi
Company for Onshore Oil Operations, UAE. |
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Name : |
CA. I. Unnikrishnan |
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Designation : |
Non - Executive Director |
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Qualification : |
B.Com., F.C.A. Chartered Accountant. |
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Name : |
Mr. T. S. Ramakrishnan |
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Designation : |
Non -Executive Director |
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Qualification : |
B.Com., LLB, CAIIB. |
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Experience : |
Former Managing Director of The Dhanalakshmi Bank Limited. Thrissur.
Vast experience in the Banking Industry in various capacities. |
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Name : |
Adv.V.R. Ramachandran |
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Designation : |
Non -Executive Director |
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Qualification : |
B.Sc.. LLB. Advocate. |
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Experience : |
Well known Civil lawyer of the Thrissur Bar |
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Name : |
Smt. Jyothi Prasannan |
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Designation : |
Non -Executive Director |
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Qualification : |
M.Sc., B.Ed. |
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Experience : |
Whole time Director of one of the Group Cos. |
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Name : |
Mr. P.Manomohanan |
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Designation : |
Non -Executive Director |
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Qualification : |
B.Com, CAIIB. |
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Experience : |
Former General Manager of Reserve Bank of |
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Name : |
Dr.VM.Manoharan |
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Designation : |
Non -Executive Director |
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Qualification : |
Mcom. Phd. |
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Experience : |
Former Dy. Director of Collegiate Education. Thrisur Zone. Principal of
Government Colleges. Thrissur, Thalassery, Chittur and Manjeswar. Syndicate
Member, |
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Name : |
A.R.Sankaranarayanan |
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Designation : |
Non -Executive Director |
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Qualification : |
MSc; IRS (Retd) |
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Experience : |
Presently GM Arya Vaidya Sala Kottakkal. Former Director, Prune
Minister's Secretariat. MD, Steel Authority International Ltd., Director
Federal Bank |
KEY EXECUTIVES
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Name : |
Shri. C. Radhakrishnan |
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Designation : |
Company Secretary |
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Name : |
Smt. Bindhu A L. |
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Designation : |
Chief Finance Officer |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of providing financial services. |
GENERAL INFORMATION
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No. of Employees : |
313 |
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Bankers : |
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The Catholic Syrian Bank Ltd.. Main Branch,
Thrissur v
Canara Bank, Thrissur, v
The Dhanalakshmi Bank Ltd., Main Branch.
Thrissur, v
Indusind Bank, Thrissur v
Punjab National Bank. Thrissur. SIB Ltd Thrissur. v
ICICI Bank v
DCBL Bank |
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Facilities : |
Secured Loans : (Rs.
In millions)
Unsecured Loans
:
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mohandas & Associates Chartered Accountants |
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Address : |
Door No. TC 25/838, |
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Group Companies : |
v
Manappuram General Finance & Leasing Limited v
Manappuram Benefit Fund Limited v
Manappuram Insurance Agents & Brokers Private
Limited v
Manappuram Chits India Limited v
Manappuram Comptech & Consultants Private Limited v
Manappuram Finance (Tamilnadu) Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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16000000 |
Equity Shares |
Rs.10/- each |
Rs.160.000 millions |
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400000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs.40.000 millions |
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Total |
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Rs.200.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5500000 |
Equity Shares |
Rs.10/- each |
Rs.55.000
millions |
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200000 |
7.5% Redeemable Preference Shares |
Rs.100/-
each |
Rs.20.000
millions |
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Total |
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Rs.75.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
75.000 |
65.000 |
45.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
105.197 |
61.800 |
41.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
180.197 |
126.800 |
86.900 |
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LOAN FUNDS |
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1] Secured Loans |
473.651 |
478.900 |
402.700 |
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2] Unsecured Loans |
182.737 |
248.900 |
175.700 |
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TOTAL BORROWING |
656.388 |
727.800 |
578.400 |
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DEFERRED TAX LIABILITIES |
1.335 |
0.000 |
0.000 |
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TOTAL |
837.920 |
854.600 |
665.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
50.940 |
32.000 |
20.200 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
20.506 |
16.500 |
9.900 |
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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 |
2.274
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Sundry Debtors |
0.000
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31.600 |
67.700 |
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Cash & Bank Balances |
341.406
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Other Current Assets |
54.332
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Loans & Advances |
629.373
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851.900 |
622.700 |
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Total
Current Assets |
1027.385
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883.500 |
690.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
199.388
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77.400 |
55.200 |
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Provisions |
61.523
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0.000 |
0.000 |
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Total
Current Liabilities |
260.911
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77.400 |
55.200 |
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Net Current Assets |
766.474
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806.100 |
635.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
837.920 |
854.600 |
665.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
|
31.03.2004 |
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Sales Turnover |
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165.435 |
119.600 |
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Other Income |
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2.300 |
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Total Income |
197.428 |
165.435 |
121.900 |
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Profit/(Loss) Before Tax |
60.620 |
43.062 |
28.200 |
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Provision for Taxation |
21.066 |
16.131 |
10.500 |
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Profit/(Loss) After Tax |
39.554 |
26.931 |
17.700 |
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Expenditures : |
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Administrative Expenses |
41.016 |
31.395 |
34.400 |
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Salaries, Wages, Bonus, etc. |
20.002 |
19.637 |
NA |
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Interest |
NA |
NA |
56.800 |
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Depreciation & Amortization |
4.840 |
3.296 |
2.500 |
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Other Expenditure |
70.949 |
68.044 |
NA |
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Total Expenditure |
136.807 |
122.372 |
93.700 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
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|
31.03.2007 (Full year) |
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Sales
Turnover |
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433.400 |
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Other
Income |
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|
3.100 |
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Total
Income |
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|
436.500 |
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Total
Expenditure |
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|
174.000 |
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Operating
Profit |
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|
262.500 |
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Interest |
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|
88.300 |
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Gross
Profit |
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|
174.200 |
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Depreciation |
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|
10.700 |
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Tax |
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|
57.400 |
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Reported
PAT |
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|
106.100 |
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Dividend
(%) |
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|
180.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity
Ratio |
4.51 |
6.11 |
6.70 |
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Long
Term Debt-Equity Ratio |
3.69 |
5.42 |
6.05 |
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Current
Ratio |
3.22 |
5.62 |
5.00 |
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TURNOVER
RATIOS |
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Fixed
Assets |
3.57 |
4.20 |
3.73 |
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Inventory |
33.46 |
6.88 |
2.19 |
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Debtors |
36.22 |
34.82 |
32.51 |
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Interest
Cover Ratio |
1.85 |
1.62 |
1.50 |
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Operating
Profit Margin(%) |
69.55 |
69.77 |
71.78 |
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Profit
Before Interest And Tax Margin(%) |
67.12 |
67.78 |
69.73 |
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Cash
Profit Margin(%) |
22.49 |
18.26 |
16.57 |
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Adjusted
Net Profit Margin(%) |
20.06 |
16.26 |
14.52 |
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Return
On Capital Employed(%) |
15.67 |
14.75 |
15.06 |
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Return
On Net Worth(%) |
28.54 |
27.05 |
24.13 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.80.50 |
|
Low |
Rs.77.25 |
LOCAL AGENCY FURTHER INFORMATION
Working results
The year 2005-2006, the 14th year of operations was a year with
excellent results. The Company continued its policy of expanding its branches in
different cities. Establishing branches, introducing new products and upgrading
human resources have helped the Company to improve the overall performance.
During the year under review, the Company has posted a record profit of
Rs.39.554 millions. The consolidated profit after tax was increased from
Rs.28.0 millions to Rs. 40.600 millions during the year under review.
Subsidiary Company
As they have reported in their last report, their 100% subsidiary
Manappuram Insurance Brokers (P) Ltd has shown a commendable performance during
the year under review. During the year under review the company has earned a
net profit of 1.035 millions out of total turnover of 7.376 Millions. The
required details pursuant to Section 212 of the Companies Act 1956 relating to
subsidiary Companies are annexed and forms part of the report of the Board.
Business outlook
The survival of NBFCs depends on their credibility, efficiency and
customer oriented services. They will have to identify market segments, develop
and strengthen their customer knowledge and focus marketing with superior risk
appraisal methods.
Diversification of funding avenues is very essential for lowering fund
costs. Innovative products, improved relationship management, efficient
customer service, better use oftechnology and reduced operational costs will
become the hallmark of successful NBFCs in future. They are confidentthat the
coming years will fortify their strength further and their far sighted strategy
of diversification in services and extension of reach across the nation will
reward the shareholders adequately for their continued trust and confidence.
Industry Structure and Developments
The last few years have seen a number ofbanks setting up Non Banking
Financial Companies to leverage their business prospects.
Similarly, a few foreign entities have also entered the Indian Financial
system through the NBFC route. This has added to the strength and credibility
of the NBFC sector. The traditional funding of NBFCs primarily by way of Public
Deposits. NC Ds and Bank Re-finance has undergone changes with reduced focus on
public deposits and NCDs and increased flow of funds from banking and other
lending institutions. Securitization and assignment of receivables have become
more important sources of NBFC funding with resultant regulator}'advantages.
The shake out of NBFC sector in the late 1990s could arrest the
mushrooming growth and only serious players are remaining in the spectrum now.
As such, the NBFC sector has been doing exceedingly well for the last few years
in tune with the growing economy which has been growing at an average rate of
6% over the last 10 years. Personal loans and SME financing have become
additional lending options to NBFCs in addition to vehicle financing and Gold
Loan.
Opportunities and Threats.
Opportunities
The positive outlook on the Indian economy will have a favourable impact
on the performance of the Company. In tune with this positive out look, the Company
had raised its paid up capital last year for improving its capital adequacy.
The company foresee tremendous opportunities for lending against gold. The
customer portfolio of the Company remains as agriculturists, small farmers,
etc., who remain substantially out of the purview of the banking system.
With the growth in the disposable income of the families, lower EMI
owing to longer tenure and an increase in the penetration of finance w ill help
to increase the demand for vehicle finance in the days to come. With a strong
nation wide reach out through its branches, the company is well equipped to explore
opportunities in its existing HP.
The over all increase in the market value of gold has thrown open more
business opportunities for the company as is seen in the performance of Gold
Loan portfolio. The company has been able to maintain its share in vehicle
finance. The fee-based segment has also registered remarkable improvement,
which consists nearly 6% of the topline.
Fixed Assets :
v
Computer
v
Computer software
v
Office equipment
v
Vehicle
v
Generator
v
Lift
v
Airconditioner
v
Electrical fittings
v
Furniture & fittings
v
Land
v
Building
v
Leased assets
Contingent
liabilities not provided for (Rs. In millions)
|
Sales Tax –Disputed |
0.690 |
|
Penalty under KML Act – Disputed |
0.030 |
|
Income Tax – Disputed |
1.433 |
|
Liability towards service tax, if materializes |
1.725 |
|
Hypothecated loan asset securitised with recourse |
30.064 |
|
Charges payable to ICICI Bank – Disputed |
-- |
|
Cash collateral deposit with ICICI Bank |
86.769 |
|
Corporate guarantee given to HDFC Bank |
30.000 |
|
Cash collateral deposit with DCB Ltd |
20.052 |
Website Details :
CORPORATE PROFILE OF MANAPPURAM GROUP
History and Present Branches of the Group
With the Trust and Commitment extending over 58 years, Manappuram Group has
emerged as a force to reckon with under the stewardship of Shri V.P.
Nandakumar, the Chairman & Managing Director of the Group. Today with Seven
Companies under its fold having 347 branches spread over ten States of Kerala,
Karnataka, Tamil Nadu, Maharashtra, Andhra Pradesh, Delhi, Uttar Pradesh,
Haryana and Punjab, a total business over Rs.1000 crores, a workforce over 4000
hands and a customer base of over one million, the group has a wide range of
activities ranging from financial services to Computer Technology. Ironically
enough, the Group is head-quartered at Valapad, a coastal village of Trichur
District in Kerala.
The Group was founded in 1949 by late Shri V.C. Padmanabhan, a great
visionary of his times. The Group commenced its operations at Valapad, mainly
with money lending activity on a very modest scale. The principal asset of the
Group was the impeccable integrity devotion and foresight of its Founder. The
Group soon established itself as a safe haven for investments of the people of
the area providing absolute safety and assured returns. On the sad demise of
the Founder in 1986, his illustrious son Shri V.P. Nandakumar, the present
Chairman took over the reins. Under his dynamic leadership the Group never had
to look back. Shri Nandakumar was working as an Officer of the erstwhile
Nedungadi Bank before he took over the captaincy of the Group. Known for his
sharp business acumen and professionalism, Shri Nandakumar has been
instrumental in taking the organization to its present level. With an alert
mind and unconventional methods of problem solving Shri Nandakumar has put this
organization on the launching pad. He believes that the future belongs to those
who can advantageously use the technology to serve the customers by evolving
customized products and services.
The Group`s flag-ship Company, Manappuram General Finance and Leasing
Limited (MAGFIL) was established in 1992 in the wake of economic reforms
launched by the Government of India mainly to take advantage of the importance
assigned to Leasing as a vehicle to promote decentralized pattern of Economic
Growth through small and medium enterprises. In a short span of time, MAGFIL
had several “Firsts”. MAGFIL was the
First NBFC in Kerala to receive a Certificate of Registration issued by RBI
mainly on the strength of the Company’s ability to settle the depositors claim
in full. MAGFIL was also the First Company to get a Credit Rating of
"MA" from ICRA, a Rating Agency approved by RBI which signifies the
company`s ability to make timely repayment of the principal and interest under
its Public Deposit Programme. Within a short span of time MAGFIL recorded a
phenomenal growth to become a premier NBFC in
In 1993, this Group set up Manappuram Benefit Fund Limited, a NIDHI
Company to provide specialized services to its members. Today it is one of the
topmost Nidhi Companies in
As a part of its diversification the Group also started Forex Business
upon the Reserve Bank of
While the Group’s core activity continues to be fund based, it has
entered very aggressively into fee based activities especially in the wake of
opening up of insurance sector allowing private participation. Though the Group marked its entry into the
Insurance field as a corporate agent of one of the private sector insurance
major, its keen desire to provide the customers with a better deal prompted it
to pursue with tenacity broking licence which it received recently from
Insurance Regulatory Development Authority in November, 2006. As an Insurance
broker, the Group is able to offer its customers a wide variety of products
tailor-made to their requirements.
Thus the Group has emerged as a one stop financial Super Market. In
order to look after the fee-based activities exclusively the Group has promoted
a separate Company called Manappuram Insurance Brokers Private Limited (MAIBRO)
as wholly owned subsidiary of MAGFIL, the flagship Company of the Group. The
Group has received ISO 9001-2000 certification in the year 1993 as a hall mark
of its having attained the International Quality Standards.
As a premier organization, the Group has derived its strength from the
dedication of its highly motivated staff. Ever since its inception, the Group
has been keen to spot the best talents available. The HR Division of the Group
places special emphasis on professionalism and high-caliber skills to keep
ahead in a highly competitive world. Being an organization with a vision, the
group has recognized that the best of investments is investment in people and
has accordingly assigned considerable importance in the matter of training its
staff. It is a matter of considerable pride that the company has a full-fledge
training establishment with very few parallels in the NBFC sector, where
in-house training courses are conducted almost continuously in a very
professional manner for upgradation of the skills and for enhancement of
functional efficiency so as to make the organization a "Customers`
Delight". Every employee has been given very clear idea of his role which
enables them to function more efficiently and produce better results.
The Group functions with a tremendous sense of social responsibility.
The setting of Manappuram Institute of Management (MAINMA) in September, 2005
to be groomed into a management institution of all
Promoting another Non Financial Company Namely, Manappuram Healthcare
Limited (MACARE) was also a manifestation of its deep-rooted social
responsibility. The Group has firm convection that with a vast chain of medical
shops across the length and breadth of the country, it will be able to provide
to the public quality drugs at affordable prices through direct sourcing and
efficient logistics, there by avoiding middlemen.
The Group’s vision in the short term is to emerge as a strong national
Player with a wide Branch net work
across the entire country to serve its customers as a one stop financial Super
Market and also to establish global presence. During this period the Group
expects to add new depth and direction to its existing fund based activities
and at the same time to get aggressively into fee based business. In the medium
term, the Group’s vision is to convert itself into a High-Tech Banking Company
offering all commercial and retail services. Under the dynamic leadership of
Shri V.P. Nandakumar, the Group is surging ahead with full steam to achieve the
target of 1000 Branches and a total business of Rs. 10,000 Crores by March,
2009.
MANAPPURAM GENERAL
FINANCE AND LEASING LIMITED (MAGFIL)
MAGFIL, an NBFC promoted by the Manappuram group has its headquarters at
Valapad, Thrissur district, Kerala and currently has a network of 87 branches
interspersed over Kerala, Tamil Nadu, Karnataka and
MAGFIL is managed by a broad-based Board consisting of eminent
professionals who have excelled in their respective fields of activity -
banking, business, legal, computer, finance and capital markets among others.
The Chairman and Managing Director of the Company is Mr. V.P. Nandakumar.
One of the biggest assets of the company is its highly qualified and
professional workforce comprising of Company Secretaries, Chartered
Accountants, Cost Accountants, MBAs and Computer Engineers. Operations of the
company are fully computerized.
The company has a number of achievements to its credit, some of which
are listed below.
It is the FIRST NBFC to be registered from the State of
It is the FIRST NBFC in the State of
It is the FIRST NBFC to go for Public Issue from Thrissur district.
It is the FIRST NBFC in the State of
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.40.71 |
|
|
1 |
Rs.81.24 |
|
Euro |
1 |
Rs.54.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|