MIRA INFORM REPORT

 

 

Report Date :

22.03.2007

 

IDENTIFICATION DETAILS

 

Name :

HT MEDIA LIMITED

 

 

Registered Office :

Hindustan Times House, 18-20 Kasturba Gandhi Marg, New Delhi - 110001, New Delh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

03.12.2002

 

 

Com. Reg. No.:

55-117874

 

 

CIN No.:

[Company Identification No.]

L22121DL2002PLC117874

 

 

Legal Form :

Public Limited Liability Company. The company’s share are listed on the stock exchange.

 

 

Line of Business :

The company engaged in Media business

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 27500000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

The concern is a part of Hindustan Times Group and K K Birla Group. Available information indicates high financial responsibility of the company. Their trade relations are reported as fair.  Payments are usually correct and as per commitments.

 

The company is expanding  fast with few projects in hand. It can be as good company for your normal business dealings. Further  it is backed  by K K Birla Group (a part of Birla Industrial House)

 

The company can be regarded as a promising business partner in a medium to long-run.

 

LOCATIONS

 

Registered Office :

Hindustan Times House, 18-20 Kasturba Gandhi Marg, New Delhi - 110001, New Delh

Tel. No.:

91-11-66561234

Fax No.:

91-11-23738887/23704600

E-Mail :

pace@hindustantimes.com

Website :

http://www.hindustantimes.com

 

 

Branches:

C - 164 & 165, Phase VIII – B Industrial Focal Point, Mohali Chandigarh, (Punjab)

Tel. No.:

5050600 /617/647

Fax No.:

5050606

 

 

Branches:

Jaipur Inn B - 17 (12), Shiv Marg, Shiv Circle, Bani Park Jaipur - 302016

Tel. No.:

2207402 - 06

Fax No.:

2207411 / 410

 

 

Branches:

Akansha Building,2nd Floor, 123 Press Complex,M.P. Nagar, Zone I, Bhopal - 462003

Tel. No.:

5223123 / 118

Fax No.:

5223110

 

 

Branches :

 Ashok Marg, Lucknow - 226001

Tel. No.:

2205722 /2205717(Dir.) 2205702/703,202(Extn.)

Fax No.:

2205716

 

DIRECTORS

 

Name :

Mr. K. K. Birla

Designation :

Chairman

 

 

Name :

Ms. Shobhana Bhartia

Designation :

Vice Chairperson and Editorial Director

 

 

Name :

Mr. Y. C. Deveshwar

Designation :

Director

 

 

Name :

Mr. K. N. Memani

Designation :

Director

 

 

Name :

Mr. Roger Greville

Designation :

Director

 

 

Name :

Mr. N. K. Singh

Designation :

Director

 

 

Name :

Mr. Ajay Relan

Designation :

Director

 

 

Name :

Mr. Priyavrat Bhartia

Designation :

Whole Time Director

 

 

Name :

Mr. Shamit Bhartia

Designation :

Whole Time Director

 

KEY EXECUTIVES

 

Name :

Mr. Rajiv Verma

Designation :

Chief Executive Officer

 

 

Name :

V. K Charoria

Designation :

Company Secretary

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Percentage of Holding

Promoters

32197052

68.73

Banks/Financial Institutions and Insurance Companies

1086188

2.32

Foreign Institutional Investors (FIIs)

10240122

21.86

Mutual Funds

325200

0.70

NRIs/  OCBs

6706

0.01

Private Bodies Corporate

454827

0.97

Public

2535746

5.41

TOTAL

46845841

100.00

 

BUSINESS DETAILS

 

Line of Business :

The company engaged in Media business

 

PRODUCTION STATUS

 

Particulars

Unit

 

Installed Capacity

Actual Production

Pages

Millions

 

--

26381.695

Copies

Millions

 

--

888.409

Newsline 45 Offset Rotary Press

No. of Machines - 6

 

270000

--

Coroset offset Rotary Press

 

No. of Machines - 2

 

80000

--

Newsline 30 Rotary Press

 

No. of Machines - 8

 

240000

--

Citiline Express Machine

 

No. of Machines - 7

 

210000

--

Wifag offset Rotary

 

No. of Machines - 3

 

180000

--

Heatset Web offset

 

No. of Machines - 1

 

40000

--

Starline 30 rotary Press

 

No. of Machines - 2

 

30000

--

Manroland Colorman

 

No. of Machines - 3

 

255000

--

 

GENERAL INFORMATION

 

Bankers :

State Bank of India, New Delhi.

 

 

Facilities :

Secured Loans

31.03.2006

Rupee Term Loan from Punjab National Bank

750.000

Secured by way of hypothecation of entire block of assets which are lying at all work place/office of the Company, consisting of plant & machinery, computers, furniture, fixtures fittings & furnishers, vehicles, (present & future) which now or hereafter from time to time during the continuance of this security, belonging to the Company wherever situated including in-transit. All the above charges are ranking pari-passu with the existing and proposed lenders. It is further secured by way of equitable mortgage by deposit of title deeds of immovable property belonging to the Company situated at Noida and Greater Noida(Repayable within a year Rs.Nil, previous year Rs. Nil).

Rupee Term Loan from State Bank of India

900.000

To be secured by way of hypothecation of all present and future goods, book debts and all other movable assets, including documents of the title to the goods, outstanding moneys, receivables including receivables by way of cash assistance and/or cash incentive under the Cash Incentive Scheme or any other scheme, Claims including claims byway of refund of customs/excise duties under the Duty Drawback Credit Scheme or any other scheme, bills, invoices, docements, contracts, insurance policies, guarantess, engagements, securities, investments and rights and present and future machinery, by way of a pari passu charge. Charge is yet to be filed with the

Registrar of Companies(Repayable within a year Rs. Nil)

Cash Credit Facility from Banks

45.726

Secured by way of hypothecation of goods stored in godowns including any such goods in course of transit or delivery and book debts including present and future debts, outstanding money, receivables and claims of the Company.

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

M/s S. R. Batiboi and Company

Chartered Accountant

 

 

Associates/Subsidiaries :

Hindustan Times Group Companies

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

52500000

Equity Shares

Rs. 10/- Each

Rs. 525.000 Millions

2000000

Preference Shares 

Rs. 100/- Each

Rs. 200.000 Millions

 

Total

 

Rs. 725.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

46845841

Equity Shares

Rs. 10/- Each

Rs. 468.458 Millions

2000000

Preference Shares 

Rs. 100/- Each

Rs. 200.000 Millions

 

Total

 

Rs. 668.458 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

668.458

617.500

471.400

2] Reserves & Surplus/(Accumulated Losses)

6263.890

3452.000

2385.200
NETWORTH

6932.348

4069.500

2856.600

LOAN FUNDS

 

 

 

1] Secured Loans

1695.726

1716.000

1875.400

2] Unsecured Loans

0.000

0.000

0.0
TOTAL BORROWING

1695.726

1716.000

1875.400

DEFERRED TAX LIABILITIES

295.842

0.000

0.000
 

 

 

 
TOTAL

8923.916

5785.500

4732.000
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

3725.887

3890.500

1634.800
Capital work-in-progress

10.516

90.500

1419.5
Intangible Assets

399.847

0.000

0.000
 

 

 

 
INVESTMENT

643.974

1009.200

436.900
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
1084.522
775.600

561.300
 
Sundry Debtors
1212.160
935.00

1036.900
 
Cash & Bank Balances
2677.504
488.600

614.800
 
Loans & Advances
978.912
231.500

231.400
Total Current Assets
5953.098
2430.700

2444.400
Less : CURRENT LIABILITIES & PROVISIONS
 
 

 
 
Current Liabilities
1684.781
1550.900

1180.600
 
Provisions
124.625
84.500

23.00
Total Current Liabilities
1809.406
1635.400

1240.800
Net Current Assets
4143.692
795.300

1203.600
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.000
 

 

 

 
TOTAL

8923.916

5785.500

4732.000

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

8210.105

6279.284

4214.500

Other Income

177.338

90.201

0.000

Total Income

8387.443

6369.485

4214.500

 

 

 

 

Profit/(Loss) Before Tax

611.678

438.200

(34.200)

Provision for Taxation

238.975

164.800

(10.400)

Profit/(Loss) After Tax

372.703

273.400

(23.800)

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

0.189

0.123

NA

 

Other Earnings

69.631

29.730

NA

Total Earnings

69.820

29.853

NA

 

 

 

 

Imports :

 

 

 

 

Raw Materials

1979.907

1528.501

NA

 

Stores & Spares

95.827

47.880

NA

 

Capital Goods

33.323

271.054

NA

Total Imports

2109.057

1847.435

NA

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

3417.147

2868.306

0.000

 

Other Expenditure

3609.299

2663.466

4541.500

Total Expenditure

7026.446

5531.772

4541.500

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2006 (1st Quarter)

30.09.2006 (2nd Quarter)

31.12.2006 (3rd Quarter)

 Sales Turnover

2391.300

2499.300

2752.100

 Other Income

87.300

75.800

148.900

 Total Income

2478.600

2575.100

2901.000

 Total Expenditure

1875.000

2022.700

2261.300

 Operating Profit

603.600

552.400

639.700

 Interest

33.800

37.900

36.200

 Gross Profit

569.800

514.500

603.500

 Depreciation

96.200

95.900

97.600

 Tax

167.300

149.600

170.200

 Reported PAT

306.300

269.000

335.700

 

200606 Quarter 1  - Expenditure Includes (Increase)/Decrease in stock in Trade Rs (1.20) million Consumption of Raw Materials Rs 953.10 million Employee Cost Rs 354.80 million Advertisement & Sales Promotion Rs 84.60 million Other Expenditure Rs 481.10 million Tax Includes Provision for Taxation Rs 159.80 million Fringe Benefit Tax Rs 7.50 million Extraordinary Items Indicates Separation Scheme Compensation EPS is Basic 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 50 Complaints disposed off during the quarter 50 Complaints unresolved at the end of the quarter Nil 1. The Company is engaged in the business of Printing and Publication of Newspapers and Periodicals and there are no other reportable segments as per Accounting Standard 17 on Segment Reporting. 2. Provision for Taxation comprises Current Tax Expense and Deferred Tax Charge. 3. Utilisation of IPO funds: Out of unspent amount of Rs 792.90 million, a sum of Rs 87.20 million has been spent during the quarter ended June 30, 2006. The remaining unspent money is temporarily invested in Fixed Deposits with banks. 4. Previous period/year figures have been regrouped, wherever considered necessary. 5. The results for the three months period ended June 30, 2006 have been subjected to a limited review by the statutory auditors. The above results as reviewed by the Audit Committee have been approved by the Board of Directors at their meeting held on July 21, 2006.

 

200609 Quarter 2  - EPS is Basic 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 66 Complaints disposed off during the quarter 66 Complaints unresolved at the end of the quarter Nil 1. The Company is engaged in the business of Printing and Publication of Newspapers and Periodicals and there are no other reportable segments as per Accounting Standard 17 on Segment Reporting. 2. Utillisation of IPO funds: Out of unspent amount of Rs 792.90 million, a sum of Rs 90.40 million has been spent during the six months period ended September 30, 2006. The unspent money is temporarily invested in Fixed Deposit with a Bank. 3. Provision for Taxation comprises Current Tax Expense and Deferred Tax Charge. 4. The results for the quarter and half year ended September 30, 2006 have been subjected to limited review by the statutory auditors. 5. The above results as reviewed by the Audit Committee have been approved by the Board of Directors at their meeting held on October 19, 2006. 6. An application is proposed to be filed with Hon'ble Delhi High Court for sanction of scheme demerger of content creation business of Go41 India (P) Limited with the Company subjected to requisite approval. 7. 20,00,000 (Twenty Lacs) 1% Non Cumulative Redeemable preference Share of Rs 100 each aggregating to Rs 200.00 million, were redeemed on September 19, 2006 @ Rs 79.13 per share aggregating to Rs 158.20 million and the balance amount of Rs 41.80 million has been certified to Capital Reserve Amount. 8. The Company has during the current quarter further funded HT Music and Entertainment company Limited (HTMECL), its subsidiary Rs 20.00 million by way of advance against 1% Non-cumulative Redeemable Preference Share and Rs 70.00 by way of Interest beading loan. 9. The HT Media Employee Welfare Trust has during the quarter ended September 30, 2006 forfeited Stock options aggregating to 6,396 Equity Shares pursuant HTML Employee Stock Option Scheme. 10. Previous period/year figures have been regrouped, wherever considered necessary.

 

200612 Quarter 3  - EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 53 Complaints disposed off during the quarter 53 Complaints unresolved at the end of the quarter Nil 1. The Company is engaged in the business of Printing and Publication of Newspapers and Periodicals and there is no other reportable segments as per Accounting Standard 17 on Segment Reporting. 2. Pursuant to the shareholders approval dated December 15, 2006 by way of Postal Ballot five (5) equity shares of face value of Rs 2/- (fully paid up) have been issud in lieu of one (1) equity share of face value of Rs 10/- to the shareholders on Record Date i.e. January 05, 2007. Accordingly the number of equity shares issued have increased to 234,229,205 from 46,845,841. 3.The Break up of expenditure on Business Paper and Mumbai Edition Development as per Sl No 4(f) of the Results are as follows: For the Quarter ended December 31, 2006 Consumption of Raw Materials* - Nil Staff Cost - Rs 20.70 million Advertising and Sales Promotion - Rs 11.40 million Other expenditure - Rs 14.30 million Net Expenditure - Rs 46.40 million Net of Job work income of Rs 7.50 million 4. The Board of Directors at their meeting held on January 16, 2007 have considered and approved the utilisation of IPO Proceed inter-se the objectives of IPO as originally approved by shareholders. Accordingly, the entire IPO proceeds of Rs 2698.70 million stands utilised for the stated objectives as on December 31, 2006. 5. Till date, the Company has made advances/long-term investment of Rs 25.50 million for acquisition of 50% stake, in a Joint Venture Company namely, Metropolitan Media Company Private Limited. The Company has given further advance of Rs 1005.00 million against issue of 1% Non-cumulative Redeemable Preference Shares by its subsidiary company namely, HT Music and Entertainment Company Limited (HTMECL), which has commenced FM Radio transmission in Delhi during the quarter. During the quarter, (HTMECL) has repaid the interest bearing loan of Rs 800.00 million given by the Company in the past. 6. During the quarter, the stock exchanges (BSE and NSE) have given their 'No-Objection' to the Scheme of Arrangement and Demerger between HT Media Limited and Go4i.com (India) Private Limited. The Company is in the process of filing the petition before Hon'ble Delhi High Court for seeking its approval of the Scheme of Arrangement. 7. Provision for Taxation comprises Current Tax Expense and Deferred Tax Charge. 8. Based on management estimates, net reversal of liabilities primarily for volume discount on advertisement revenue upto six months period ended September 30, 2006 amounting to Rs 35.60 million have been adjusted from current quarter's revenue and for the period upto March 31, 2006 amounting to Rs 40.30 million have been included under other income. As on December 31, 2006 the total amount of liabilities stands at Rs 395.40 million as against Rs 402.30 million as on September 30, 2006 and Rs 288.40 million as on March 31, 2006. 9. The results for the quarter and nine months period ended December 31, 2006 have been subjected to limited review by the Statutory Auditors in terms of Clause 41 of the Listing Agreement. 10. The above results as reviewed by the Audit Committee have been approved by the Board of Directors at their meeting held on January 16, 2007. 11. Previous period/year figures have been regrouped, wherever necessary.

 

KEY RATIOS

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Debt-Equity Ratio

0.31

0.52

0.66

Long Term Debt-Equity Ratio

0.30

0.48

0.58

Current Ratio

2.22

1.57

1.74

TURNOVER RATIOS
 

 

 

Fixed Assets

1.88

2.11

4.73

Inventory

8.83

9.39

14.83

Debtors

7.65

6.37

8.03

Interest Cover Ratio

6.75

8.49

0.69

Operating Profit Margin(%)

16.45

13.35

4.60

Profit Before Interest And Tax Margin(%)

11.75

9.74

0.96

Cash Profit Margin(%)

10.95

8.97

3.45

Adjusted Net Profit Margin(%)

6.25

5.36

(0.19)

Return On Capital Employed(%)

13.39

11.63

0.00

Return On Net Worth(%)

9.65

10.11

0.00

 

STOCK PRICES

 

Face Value

Rs.10/-

High

Rs.193.95/-

Low

Rs.190.00/-

 

LOCAL AGENCY FURTHER INFORMATION

 

History

 

HT Media Limited, promoted by Hindustan Times Limited (a leading Newspaper publishing company) was incorporated on December 3, 2002. At present Hindustan Times Limited (HTL) holds 68.73% of shares of HT Media Limited and with this the company is the subsidiary of the Hindustan Times Limited. 

 
HT Media Limited acquired the media business of HTL, through a slump sale on a going concern basis. Pursuant to two business purchase agreements, both dated August 15, 2003, the media business comprising of the entire printing and publishing undertakings of HTL in all locations except at New Delhi, and the publishing undertaking of HTL at New Delhi, respectively, were acquired by HT Media at a consideration comprising cash and issuance of Equity Shares.

 
The printing undertaking of HTL at New Delhi was subsequently acquired by the company through a separate agreement dated October 1, 2004 at a cash consideration. 

 
During the year under review, the Company entered the capital market with an Initial Public Offering (IPO) (through book building route) of a fresh issue of 46,40,000 Equity Shares of Rs.10/- each and an Offer for Sale of 23,55,000 Equity Shares of Rs.10/- each by HPC (Mauritius) Limited, for cash at a price of Rs.530/- per Equity Share, aggregating to Rs. 3707.350 Millions. 

 
The Times of India Group & HT Media Limited have signed a memorandum of understanding (MoU) (Subject to Board approval) October 03, 2006 to establish a 50:50 Joint venture. The joint venture will function as a standalone business and has been established to publish a new and vibrant newspaper in Delhi, reflecting the changing needs of the reader and the emergence of Delhi as an International city. bb

 

INITIAL PUBLIC OFFERING: 

 
During the year under review, the Company entered the capital market with an Initial Public Offering (IPO) (through book building route) of a fresh issue of 46,40,000 Equity Shares of Rs.10/- each and an Offer for Sale of 23,55,000 Equity Shares of Rs.10/- each by HPC (Mauritius) Limited, for cash at a price of Rs.530/- per Equity Share, aggregating to Rs. 3707.350 Millions. The IPO also comprised a Green Shoe Option of 6,96,000 Equity Shares of Rs. 10/- each, out of which 4,51,941 fresh Equity Shares of Rs. 10/- each were issued. Post IPO, the paid-up Equity Share Capital of the Company rose to Rs. 468.458 Millions. The issue received an overwhelming response from the investors. The Directors express their gratitude to the investors for the trust and confidence reposed by them in the Company and its management. 

 
 The objective of the issue was to partially meet the Company's requirement of funds for various expansion and diversification programmes. Out of the aggregate amount of Rs. 2698.729 Millions raised by the Company from the issue, a sum of Rs. 1905.801 Millions was utilized during the year, for part financing the expenditure on projects and other activities mentioned in the Prospectus and the balance amount has been kept in the form of deposits. 

 

COMPANY PERFORMANCE AND FUTURE OUTLOOK: 

 
 A detailed analysis and insight into the financial performance, operations and outlook of the Company for the year under review, is appearing in the Management Discussion and Analysis

 

AS PER WEBSITE

 

PACE - Partnerships for Action in Education, the Hindustan Times Newspaper in Education Programme was launched in 1998 at which point in time the print media was faced with growing challenges namely an ageing readership profile, threat from the electronic media and a significant decrease in reading habits among the youth.

 

Today, a front-runner of all NIE initiatives in India, PACE has succeeded in making the newspaper an integral part of a child’s curriculum seriously addressing the student community whilst bringing about significant value-addition in and around the editorial product thus succeeding in literally bringing the world into the classroom

 

Successfully established in over fifteen hundred schools in five cities across India, PACE has grown from a small beginning of a hundred students to a countrywide network of over three hundred thousand Students, Teachers, Principals, Parents, Govt. organisations, UN agencies, NGOs, Corporates and Resource Persons.

 

The critical element common across all sub-initiatives of PACE is that the ownership of the programmer belonged to ‘them’- the students and their educators with the newspaper being the facilitator.


Associated with schools for over five years, today PACE has become a trusted partner of schools in their endeavour to add value to education and a new dimension to classroom teaching, the key objectives being:

 

To provide a platform for schools to interact with each other and with the communities they function in.

 

v      To maintain standards of world-class excellence in NIE

v      To sensitize students to global issues of peace, tolerance, gender bias, literacy and environmental concerns thus helping build responsible and insightful future citizens.

 

 

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 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.43.70

UK Pound

1

Rs.85.90

Euro

1

Rs.58.25

 

 

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

6

--PROFITABILIRY

1~10

6

--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

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions