MIRA
INFORM REPORT
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Report Date : |
21.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
KERALA CHEMICALS & PROTIENS LIMITED |
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Registered Office : |
Post Bag No. 4262, 50/1002, SBT Avenue, Panampilly Nagar, Cochin - 682
036 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
30.04.1975 |
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Com. Reg. No.: |
002691 |
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CIN No.: [Company
Identification No.] |
L24299KL1975PLC002691 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNK00559G |
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PAN No.: [Permanent
Account No.] |
CN – 2386 |
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Legal Form : |
A Public Limited
Liability Company. The Company’s Shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Gelatin (mostly for photographic use),
Ossein and Dicalcium Phosphate (used in animal feed) from Crushed Animal
Bones |
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 2500000 |
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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 : |
Post Bag No. 4262, 50/1002, SBT Avenue, Panampilly Nagar, Cochin - 682
036 |
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Tel. No.: |
91-484-2317904/805, 2310564/8, 2323463 |
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Fax No.: |
91-484-2310568 |
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E-Mail : |
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Website : |
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Factory 1 : |
Ossein Division Kathikudam P.O., (Via)
Koratty, Gelatin Division Kinfra Export Promotion Industrial
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DIRECTORS
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Name : |
Mr. P. H. Kurian, IAS |
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Designation : |
Chairman |
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Name : |
Mr. A. K. Nair |
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Designation : |
Managing Director |
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Name : |
Mr. N. Muraki |
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Designation : |
Joint Managing Directo |
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Name : |
Mr. G. Suseelan |
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Designation : |
Director |
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Name : |
Mr. Norimichi Soga |
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Designation : |
Director |
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Name : |
Mr. T. Nishio |
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Designation : |
Director |
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Name : |
Mr. K. Inoue |
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Designation : |
Director |
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Name : |
Mr. Venu Nallur |
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Designation : |
Director |
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Name : |
Mr. K. Ramakrishnan |
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Designation : |
Director |
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Name : |
Mr. K. L. Kumar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. P. D. Vincent |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Resident Indians |
1412895 |
16.82 |
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Foreign Collaborators |
3900300 |
46.43 |
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Indian Collaborator |
2862220 |
34.07 |
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Domestic Companies |
188943 |
2.24 |
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Financial Institutions (IDBI) |
19248 |
0.22 |
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NRIs |
7154 |
0.08 |
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Mutual Funds |
3330 |
0.04 |
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Banks |
200 |
0.00 |
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Clearing Member NSDL/CDSL |
5710 |
0.06 |
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Total |
8400000 |
100.000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Gelatin (mostly for photographic use),
Ossein and Dicalcium Phosphate (used in animal feed) from Crushed Animal
Bones |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Ossein |
MT |
6000 |
5500 |
6568 |
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Ossein (Limed) |
MT |
-- |
3100 |
3256 |
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Dicalcium Phosphate |
MT |
12500 |
11000 |
14487 |
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Compound Glue |
MT |
300 |
300 |
0 |
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Gelatin |
MT |
2080 |
2000 |
2586 |
GENERAL
INFORMATION
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No. of Employees : |
321 |
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Bankers : |
v State Bank of
India v Canara Bank v State Bank of
Travancore v UTI Bank Limited v South Indian
Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Varma and Varma Chartered Accountant |
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Associates/Subsidiaries : |
Kerala State Industrial Development Corporation Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10,000,000 |
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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8,400,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 84.000
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 |
84.000 |
84.000 |
84.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
581.209 |
619.174 |
643.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
665.209 |
703.174 |
727.200 |
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LOAN FUNDS |
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1] Secured Loans |
275.982 |
275.844 |
229.200 |
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2] Unsecured Loans |
38.378 |
49.343 |
61.400 |
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TOTAL BORROWING |
314.360 |
325.187 |
290.600 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
979.569 |
1028.361 |
1017.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
577.768 |
632.573 |
641.100 |
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Capital work-in-progress |
1.660 |
0.664 |
4.200 |
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INVESTMENT |
22.778 |
22.779 |
22.800 |
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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 |
332.255
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324.605 |
283.100 |
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Sundry Debtors |
57.035
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56.798 |
49.100 |
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Cash & Bank Balances |
6.074
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10.955 |
53.900 |
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Other Current Assets |
19.609
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26.938 |
0.000 |
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Loans & Advances |
56.194
|
37.835 |
48.700 |
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Total
Current Assets |
471.167
|
457.131 |
434.800 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
89.247
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79.463 |
77.300 |
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Provisions |
6.733
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6.216 |
7.800 |
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Total
Current Liabilities |
95.980
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85.679 |
85.100 |
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Net Current Assets |
375.187
|
371.452 |
349.700 |
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MISCELLANEOUS EXPENSES |
2.176 |
0.893 |
0.000 |
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TOTAL |
979.569 |
1028.361 |
1017.800 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
976.385 |
884.122 |
881.800 |
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Other Income |
20.233 |
112.045 |
62.300 |
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Total Income |
996.618 |
996.167 |
944.100 |
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Profit/(Loss) Before Tax |
(36.564) |
(21.748) |
(64.500) |
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Provision for Taxation |
1.400 |
2.223 |
0.000 |
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Profit/(Loss) After Tax |
(37.964) |
(23.971) |
(64.500) |
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Earnings in Foreign Currency : |
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Export Earnings |
623.679 |
542.481 |
NA |
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Total Earnings |
623.679 |
542.481 |
NA |
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Imports : |
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Raw Materials |
9.261 |
0.436 |
NA |
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Capital Goods |
1.469 |
13.957 |
NA |
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Others |
4.413 |
1.252 |
NA |
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Total Imports |
15.143 |
15.645 |
NA |
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Expenditures : |
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Manufacturing Expenses |
391.332 |
376.637 |
93.900 |
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Administrative Expenses |
0.000 |
0.000 |
61.000 |
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Raw Material Consumed |
540.962 |
552.217 |
516.300 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
63.800 |
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Power & Fuel |
0.000 |
0.000 |
154.100 |
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Depreciation & Amortization |
69.701 |
65.721 |
0.000 |
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Other Expenditure |
31.186 |
23.343 |
11.200 |
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Total Expenditure |
1033.181 |
1017.918 |
900.3 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2006 (1ST
Quarter) |
30.09.2006 (2nd
Quarter) |
31.12.2006 (3rd
Quarter) |
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Sales Turnover |
304.500 |
340.600 |
319.500 |
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Other Income |
9.500 |
5.600 |
16.200 |
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Total Income |
314.000 |
346.200 |
335.700 |
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Total Expenditure |
283.300 |
305.600 |
274.100 |
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Operating Profit |
30.700 |
40.600 |
61.600 |
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Interest |
9.000 |
8.800 |
9.400 |
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Gross Profit |
21.700 |
31.800 |
52.200 |
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Depreciation |
16.500 |
16.700 |
16.700 |
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Tax |
0.300 |
0.200 |
6.700 |
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Reported PAT |
4.900 |
14.900 |
28.800 |
200606
Quarter 1 - EPS
is Basic & Diluted Status of Investor Complaints for the quarter ended June
30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 03 Complaints disposed off during the quarter 03
Complaints unresolved at the end of the quarter Nil The above results, were
reviewed by the Audit Committee in their meeting held on July 28, 2006 and
taken on record at the meeting of the Board of Directors held on July 28, 2006.
200609
Quarter 2 - EPS
is basic and diluted. 1. The above results were reviewed by the Audit committee
in their meeting held on 30.10.2006 and taken on record by the Board of
Directors held on the said date. 2. Other expenditure includes Rs 48 lacs
relating to the earlier year, incurred during the year. 3. Status of Investor
Complaints for the quarter ended September 30, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 01
Complaints disposed off during the quarter 01 Complaints unresolved at the end
of the quarter Nil
200612
Quarter 3 - The
above results, were reviewed by the Audit Committee in their meeting held on
25.01.2007 and taken on record at the meeting of the Board of Directors held on
the said date. 2. Other income includes interest on refund of excise duty,
allowed by the Customs, Excise & Service Tax Appelate Tribunal taken credit
for as per company's computation amounting to Rs.93 lakhs which is pending
final determination by the assessing authorities. 3. Other expenditure includes
Rs.42 lakhs being the written down value of fixed assets scrapped and written
off 4. During the quarter no investor complaint was received. There were no
investor complaints both at the beginning and end of the quarter.
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.47 |
0.43 |
0.34 |
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Long Term Debt-Equity Ratio |
0.06 |
0.09 |
0.10 |
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Current Ratio |
1.27 |
1.37 |
1.56 |
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TURNOVER RATIOS |
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Fixed Assets |
0.87 |
0.82 |
0.80 |
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Inventory |
3.08 |
3.05 |
3.36 |
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Debtors |
17.79 |
17.48 |
19.75 |
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Interest Cover Ratio |
(0.17) |
0.07 |
(2.73) |
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Operating Profit Margin(%) |
6.35 |
7.27 |
2.52 |
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Profit Before Interest And Tax Margin(%) |
(0.53) |
0.17 |
(5.35) |
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Cash Profit Margin(%) |
3.13 |
4.50 |
0.56 |
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Adjusted Net Profit Margin(%) |
(3.75) |
(2.59) |
(7.31) |
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Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
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Return On Net Worth(%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.(0.01) |
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Low |
Rs.(0.01) |
LOCAL AGENCY
FURTHER INFORMATION
History
Kerala Chemicals & Proteins (KCPL) is a joint venture
between Kerala State Industrial Development Corporation and two renowned
Japanese companies - Nitta Gelatin and Mitsubishi Corporation. It produces
ossein, a chemical used to manufacture gelatin (mostly for photographic use)
and dicalcium phosphate (used in animal feed) from crushed animal bones. It
began commercial production in 1979.
The plant capacity to manufacture ossien was initially 3300 tpa and that
of DCP was 6700 tpa. Ossein capacity was increased to 5000 tpa and of DCP to
11000 in 1992-93. In 1993-94, the company undertook a project for liming of
ossein.
In 1995-96, the first phase of the liming project was completed. The
company is setting up a unit for the manufacture of 2000-tpa gelatine with the
technical collaboration of Nitta Gelatin, Japan. The project cost is Rs 700.000
Millions For the third time in succession, the company received the Top Export
Award for Ossein for 1994-95 from CAPEXIL.
During 1996-97, the trial project of Liming Of Ossein was restarted on
Feb.'97 with an installed capacity of 5 MT per day, due to delay in the
previous year. The Gelatine project is also under implementation due to delay
in respect of the land acquired, but since the company has received allotment
of 13 acre plot for the project in the KINFRA Export Promotion Industrial Park
in Kakkanadu.
Trial run production of Limed Ossein commenced in Feb.'97 and the
construction of the Gelatine Project was completed as per schedule. A new
subsidiary by name of Bamni Protiens Private Limited was incorporated in
December 1997 with an authorised capital of Rs 30.000 Millions.
During 1998-99, the company's Ossein division got ISO 9002 certification
from KEMA, Netherland. Also 2000MT Gelatin Plant at Kakkanad commenced
commercial operation from 8th March, 1999. It was delayed much and the actual
project cost came to Rs. 837.300 Millions as against projected cost of Rs.
778.200 Millions.
The Company's business was adversely affected due to madcow disease in
Europe, however the clearance given by the European Union for import with
restriction is expected to show some signs of recovery. The company with the
help of Collaborators is planning to make investments in Gelatine plants to the
extent of Rs.50.000 Millions and is exploring ways and means of raising the
requisite funds to maximum advantage including sourcing from Foreign
Banks/Institutions.
REVIEW
OF OPERATIONS
The Gelatin industry has not shown any improvement during the year. The
global demand for bone gelatin further reduced due to health scare. As a result
the demand for Ossein from M/s. Nitta Gelatin Inc. during the year reduced by
406 MT.
However, the company could increase the Gelatin production and sale with
active support of the collaborators and could increase the turnover.
The market for Dicalcium Phosphate had been stable till January 2006.
However, the detection of bird flu disease in Maharashtra during February 2006
has adversely affected the market resulting in considerable reduction in price.
The strengthening of rupee against dollar continued during the current year
also and the loss to the Company on account of this, compared with average
realisation during last year was Rs. 7.500 Millions. The average price of
crushed bone increased by 9.12%. The furnace oil price also increased
considerably due to the crude oil price increase in the international market
and the average increase compared with last year was 17%. The loss to the
company on account of the price increase was Rs. 9.038 Millions.
The Company is making all out efforts to increase the yield and to reduce
production cost. They are glad to inform you that teams from two international
regulatory agencies - United States Food and Drug Administration (USFDA) from
USA and European Directorate for the Quality of Medicines (EDQM) from Europe
inspected the Factory and certified compliance. Their products are already
being sold in USA and some countries in Europe. These certifications will help
the company's product to get
wider access in the Europe and US markets in the coming years.
The Company sold 1814 MT of Gelatin in the export markets such as Japan,
Iran, USA, Singapore, Sri Lanka and Canada and 745 MT in the domestic market.
Altogether, the turnover increased by 10.42%. The financial results of the
year's operations vis-a-vis that of the previous year are given at the
beginning of the report.
BAMNI PROTEINS LIMITED
The annual production during the year was 3.54% higher than the previous
year. However, due to increase in furnace oil cost and cost of coal the
subsidiary company incurred a loss of Rs.4.123 Millions.
The Directors' Report, Balance Sheet and Profit & Loss Account of
Bamni Proteins Limited for the year 2005-06 is attached as required under
Section 212 of the Companies Act, 1956.
The Company has become a Sick Industrial company as per the provisions of
Sick Industrial Companies (Special Provisions) Act, 1985.
COLLABORATORS
The Collaborators continue to provide their wholehearted support to the
Company.
M/s. Nitta Gelatin Inc., the technical and financial Collaborators,
purchased 4,00,000 Equity Shares from M/s.
Mitsubishi Corporation, during the year. Their total share participation
is now 42.95%. There is, however, no change in the total holding of the Foreign
Collaborators.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
THE STRUCTURE AND DEVELOPMENTS IN THE GELATIN/OSSEIN INDUSTRY
Kerala Chemicals and Proteins Limited has been producing Gelatin, Ossein
and Dicalcium Phosphate. Ossein is sold to the collaborators. Gelatin caters to
the demand of photo, food and pharmaceutical industry, both in the domestic and
international markets.
SEGMENT-WISE PERFORMANCE
Exports
5-6% growth is estimated in the world-wide Gelatin market.
The demand for Pharmaceutical Grade Gelatin is increasing and they expect to
increase their exports in this segment. Eventhough the introduction of digital
technology has had an impact on the demand of Photographic Grade Gelatin, they
have been able to sustain their sales in this market segment last year. They
expect to continue their sales in the segment in the coming years. However the
volumes are expected to reduce in a phased manner.
During 2005-06, they have successfully faced two every important
international regulatory inspections conducted by USFDA and EDQM. The outcome
of these inspections will give a further impetus to their export
business.
The year 2005-06 witnessed a further reduction of the Ossein exports to
M/s. Nitta Gelatin Inc., due to reduced demand of Gelatin in their markets.
However, the fact that NGI has already confirmed an increased off-take of
Ossein during the current year, indicates that the international Gelatin market
is on the recovery path.
They have been earnestly trying to increase the market spread for DCP by
exploring new export possibilities.
Domestic
Gelatin
The demand for Hard Capsule and Soft Capsule Grade Gelatin was steady
during 2005-06 and is expected to increase in the current year.
Their customers in India continue to use their product mainly for their
export production and they are therefore expecting a steady demand in the
domestic market.
DCP
The Indian Poultry Industry had a very good year until the outbreak of
bird flu in February 2006. DCP prices in the domestic market had increased
steadily throughout the year. However, from March 2006, as a result of bird flu
outbreak the demand and as a result the price have been adversely affected.
They expect that it will take 6-12 months for the market to recover.
Opportunities
They now have the unique strength of having successfully faced two very
important international regulatory inspection and they therefore expect that
the increased confidence of their overseas customers will result in increased
demand for their Gelatin.
Their product has the advantage of being well accepted in terms of
quality and regulatory compliance. They therefore expect to increase their
presence both in the export and domestic markets.
Threats
There has been a substantial increase in the production volumes of Pork
Skin Gelatin. The increased availability of this type of Gelatin is likely to
adversely affect the demand of Bovine Bone Gelatin. Also Gelatin alternatives
such as HPMC and starch based products pose a strong threat to the future of
the industry. Conventional photography is making way to digital photography and
a steady decline in this market segment has to be anticipated.
Outlook
They are now shifting their focus towards Pharmaceutical Grade Gelatin.
With the growing demand in the overseas and domestic market for this grade,
they expect an increase in the pharmaceutical grade business during 2006-07.
Eventhough the photographic market is on the decline they will be in a position
to maintain their sales volume in this segment.
Ossein exports are expected to increase in 2006-07. The impact of bird
flu is expected to die down by September 2006 and thereafter the DCP market is
likely to improve.
Financial
Performance
Turnover increased by 10.43% to Rs.976.400 Millions during the year ended
31st March 2006 as compared to Rs. 884.100 Millions during the previous
year.
The Gross profit (earnings before interest, depreciation, taxes and write
back) for the current year was Rs.62.400 Millions as against Rs. 64.700
Millions in the previous year. The operating profit (including other income)
was Rs.31.700 Millions as against Rs.41.800 Millions in the previous
year.
The interest expenses and depreciation for the current year was Rs.29.200
Millions and Rs. 69.700 Millions as against Rs.20.700 Millions and Rs.65.700
Millions of the previous year.
Fixed Assets
v
Land and Development
v
Leasehold Land
v
Building
v
Plant & Machinery
v
Service Equipment
v
Office Equipment
v
Furniture & Fixture
v
Vehicles
As per website details
Corporate Profile
VISION
To become a premier industry in India with a global perspective, world class standards of efficiency and professionalism and core institutional values.
v Reach the position as the leader in Gelatin manufacture in India.
v Maximise shareholder value through high sustained earnings per share.
v Continue as an institution with a culture of mutual care and commitment, a satisfying work environment and continuous learning opportunities.
Kerala Chemicals and Proteins Limited. (KCPL), one of the most successful Indo-Japanese industrial ventures, was incorporated in 1975 and started commercial production in 1979.
KCPL is managed by a professional team. Through its collaborators KCPL has
access to state-of-the-art technology and process inputs that help the company
achieve its global vision.
STRENGTHS
v Innovative manufacturing and business strategies
v A vast global clientele
v Dedicated, technically qualified people
v Excellent after-sales guidance and customer support service
v Steady growth across the past two decades
v Committed to improving the quality of the society
Better quality of life:
They owe their success as much to their social environment as to their
sophisticated technology and dedicated effort. As active participant in the
social development of their home State, they have been involved in various
development projects.
The Promoters
NITTA GELATIN INC.
(NITTA)
The Gelatin division of the multidivision, multiproduct NITTA Group of Japan,
NITTA Gelatin Inc. was formed in 1918. The company has five main divisions -
Gelatin, Food Additives, Adhesives, Engineering and Research & Development.
NITTA has set for itself high quality standards through relentless research,
development, innovation and production technology. All of which have made it
the world leader in the Gelatin market.
MITSUBISHI CORPORATION (MC)
Japan's largest general trading company, Mitsubishi Corporation handles a vast
array of goods and services ranging from telecommunications to tea. MC was
established in 1950 and has its headquaters in Tokyo, Japan.
THE KERALA STATE INDUSTRIAL DEVELOPMENT
CORPORATION LIMITED
The nodal agency for the development and promotion of industries in Kerala, the
KSIDC is a fully owned company of the state Government. For over 35 years now
the Corporation has been giving entrepreneurs professional, technical and
financial assistance to set up successful business projects in Kerala.
They are Certified
v ISO 9001 : 2000
v HACCP
v WHO - GMP
v EDQM - Certificate of Suitability
Quality Policy
They, in KCPL are committed to enhance customer confidence through continual
improvement of product quality, safety and service.
It is this simple realisation that urged us on across the last twenty years to
focus solely on quality. Perhaps it is this preoccupation with quality that won
us rich dividends - awards for quality and performance, discerning clients
across the world and a steady growth rate.
KCPL combines the best technology, marketing expertise, and most importantly,
dedicated human resource. All of which go a long way to ensure their clients
absolute quality.
Sustained quality through advanced technology
Their association with NITTA gives us access to the latest technologies in the industry. A whole time Technical Director from NITTA heads Technical Operations. Gelatin quality control is directly under a Quality Control Manager from NITTA. A full fledged R&D department focuses on innovation, improvisation and process development.
Gelatin
KCPL today is one
of the major manufacturers of premium, export quality Gelatin in India.
Functioning in technical collaboration with NITTA, the company has a production
capacity of 2000 TPA.
KCPL's
state-of-the-art plant is highly automated using the latest available version
of process control software. The entire process is monitored and controlled
from the Central Control Room.
The equipment
selection for the plant, has been with an eye on maintaining global product
quality standards. All critical equipment have been imported from the best
sources in the world.
At KCPL, GMP,
Hygiene and Sanitation are watch words. The processing of Bone to Limed Ossein
is done at the Ossein plant. Limed Ossein, is transported to the Gelatin plant
in specially designed tankers and processed to Gelatin. This enables KCPL
maintain very high level of hygiene & sanitation.
Great care is taken to ensure that the customer receives the product in
immaculate condition. Packing and product handling are automated. All goods
leaving their factory are palletised and stretch-wrapped.
Their pre-occupation with quality has won us rich dividends - awards for
quality and performance, discerning customers across the world and a steady
growth rate. Comprehensive customer orientation is one of KCPL's
entrepreneurial guidelines. They believe that technically demanding products
are only as good as their accompanying services.
v Customer specific products and usage related solutions
v Consistent quality, meeting USP standards
v Quality Control directly under Nitta
v GMP implemented
v Ready for vendor audit requirements
v Technical presentations and interactive sessions
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.43.63 |
|
UK Pound |
1 |
Rs.85.58 |
|
Euro |
1 |
Rs.58.08 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|