MIRA
INFORM REPORT
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Report Date : |
22.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
THE LAKSHMI MILLS COMPANY LIMITED |
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Registered Office : |
686, Avinashi Road, Coimbatore – 641037, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.04.1910 |
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Com. Reg. No.: |
18-93 |
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CIN No.: [Company
Identification No.] |
L17111TZ1910PLC000093 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBT03088B/CMBT03037G |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on Stock Exchanges |
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Line of Business : |
Manufacturers of Cotton Yarn, Cotton Fabrics, Staple Fibre Yarn and
Cloth |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 5400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having
satisfactory track. Directors are reported as experienced 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/factory : |
686, Avinashi Road, Coimbatore – 641037, Tamilnadu |
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Tel. No.: |
91-422-2215461 to 2215465 |
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Fax No.: |
91-422-2216508 |
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E-Mail : |
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Website : |
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Mills at |
v Coimbatore –
Tamilnadu v Singanallur –
Tamilnadu v Kovilpatti - Tamilnadu v Palladam -
Tamilnadu |
DIRECTORS
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Name : |
Dr. D. Jayavarthanavelu |
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Designation : |
Director |
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Name : |
Mr. V.Jagannathan |
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Designation : |
Director |
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Name : |
Mr. D. Rajendran |
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Designation : |
Director |
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Name : |
Mr. Justice G. Ramanujam |
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Designation : |
Director |
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Name : |
Mr. P. Sabanayagam |
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Designation : |
Director |
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Name : |
Mr. R. Santharam |
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Designation : |
Director |
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Name : |
Mr. Satish Ajmera |
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Designation : |
Director |
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Name : |
Mr. V.S. Velayutham |
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Designation : |
Director |
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Name : |
Mr. K. Sundaram |
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Designation : |
Chairman |
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Name : |
Mr. S. Pathy |
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Designation : |
Vice Chairman |
KEY EXECUTIVES
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Name : |
Mr. S. Balamurugasundaram |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (31.12.2006) |
No. of Shares |
Percentage of
Holding |
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Indian |
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Individuals/Hindu Undivided Family |
201435 |
28.96 |
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Bodies Corporate |
101901 |
14.65 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
40 |
0.01 |
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Financial Institutions/ Banks |
505 |
0.07 |
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Central Government / State Government(s) |
5107 |
0.73 |
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Insurance Companies |
44976 |
6.47 |
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Foreign Financial Institutions / Banks |
20 |
0.00 |
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Non-institutions |
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Bodies Corporate |
80561 |
11.58 |
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Individual shareholders holding nominal share capital up to Rs.0.100
Millions |
200876 |
28.88 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 Millions. |
48917 |
7.03 |
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Any Other |
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Trusts |
388 |
0.06 |
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Directors & Their Relatives |
570 |
0.08 |
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Non Resident Indians |
3654 |
0.53 |
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Clearing Members |
2197 |
0.32 |
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Hindu Undivided Families |
4403 |
0.63 |
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Total |
695550 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Cotton Yarn, Cotton Fabrics, Staple Fibre Yarn and
Cloth |
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Products : |
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Exports : |
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Products : |
Yarn and Cloth |
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Countries : |
Australia, Bangladesh, Japan, Singapore, Spain, and UK. |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Ring Spindles |
Nos. |
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156880 |
-- |
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Looms |
Nos. |
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331 |
-- |
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Cotton & Synthetic Yarn |
Kgs. |
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-- |
7.810 |
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Cloth |
Kgs. |
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-- |
6.340 |
GENERAL
INFORMATION
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No. of Employees : |
6000 |
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Bankers : |
v Central Bank of
India v Bank of India v State Bank of
Mysore v State Bank of
Saurashtra v Corporation Bank v Indian Bank v Canara Bank |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Subbachar & Srinivasan Chartered Accountants Fraser & Ross Chartered Accountants |
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Memberships : |
v South Indian
Textile Research Association v SIMA Cotton
Development and Research Association v Confederation of
Indian Industry |
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Collaborators : |
Nil |
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Associates/Subsidiaries : |
v Lakshmi
Automatic Loom Works Limited v Lakshmi Machine
Works Limited v Lakshmi
Synthetic Machinery Manufacturers Limited v Coimbatore
Lakshmi Investment & Finance Company Limited v G. Kuppuswamy
Naidu Memorial Hospital v Lakshmi Systems
Academy v Educational
Institutions v Lakshmi Card
Clothing Manufacturing Company Private Limited v Rajshree Sugars
& Chemicals Limited v Balakumar
Shipping & Clearing Agency Private Limited v Aloha Tours
& Travels (India) Private Limited v Sri Revati
Spinning Mills Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,000,000 |
Equity Shares |
Rs. 100/- each |
Rs. 100.000
million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
695,550 |
Equity Shares |
Rs. 100/- each |
Rs. 69.555
million |
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 |
69.555 |
69.555 |
69.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1283.289 |
1230.937 |
103.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1352.844 |
1300.492 |
172.700 |
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LOAN FUNDS |
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1] Secured Loans |
243.628 |
320.050 |
298.300 |
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2] Unsecured Loans |
30.044 |
31.154 |
33.300 |
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TOTAL BORROWING |
273.672 |
351.204 |
331.600 |
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DEFERRED TAX LIABILITIES |
55.171 |
51.377 |
0.000 |
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TOTAL |
1681.687 |
1703.073 |
504.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1430.322 |
1395.310 |
298.300 |
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Capital work-in-progress |
7.035 |
4.681 |
17.000 |
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INVESTMENT |
17.939 |
12.689 |
12.700 |
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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 |
241.083
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254.415 |
284.800 |
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Sundry Debtors |
61.759
|
73.709 |
101.100 |
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Cash & Bank Balances |
135.364
|
87.978 |
96.300 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
77.468
|
68.705 |
74.900 |
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Total
Current Assets |
515.674
|
484.807 |
557.100 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
346.072
|
266.482 |
431.600 |
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Provisions |
31.918
|
22.085 |
17.700 |
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Total
Current Liabilities |
377.990
|
288.567 |
449.300 |
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Net Current Assets |
137.684
|
196.240 |
107.800 |
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MISCELLANEOUS EXPENSES |
88.707 |
94.153 |
68.500 |
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TOTAL |
1681.687 |
1703.073 |
504.300 |
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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 |
1506.450 |
1462.742 |
1587.500 |
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Other Income |
24.327 |
16.507 |
75.100 |
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Total Income |
1530.777 |
1446.235 |
1662.600 |
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Profit/(Loss) Before Tax |
0.741 |
0.474 |
5.900 |
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Provision for Taxation |
0.099 |
0.041 |
1.100 |
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Profit/(Loss) After Tax |
0.642 |
0.433 |
4.800 |
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Earnings in Foreign Currency : |
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Export Earnings |
84.149 |
144.191 |
NA |
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Total Earnings |
84.149 |
144.191 |
NA |
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Imports : |
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Raw Materials |
187.631 |
95.653 |
NA |
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Stores & Spares |
1.470 |
3.424 |
NA |
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Total Imports |
189.101 |
99.077 |
NA |
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Expenditures : |
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Manufacturing Expenses |
96.788 |
98.479 |
94.300 |
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Administrative Expenses |
5.569 |
7.556 |
155.300 |
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Raw Material Consumed |
680.580 |
711.052 |
653.700 |
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Consumption of stores and spares parts |
55.979 |
45.875 |
0.000 |
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Salaries, Wages, Bonus, etc. |
238.701 |
234.955 |
268.900 |
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Interest |
29.897 |
43.671 |
66.000 |
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Power & Fuel |
243.315 |
241.899 |
240.700 |
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Depreciation & Amortization |
55.913 |
53.132 |
52.900 |
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Other Expenditure |
63.728 |
62.110 |
0.000 |
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Total Expenditure |
1470.470 |
1498.729 |
1531.800 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 (1st
Quarter) |
30.09.2006 (2nd
Quarter) |
31.12.2006 (3rd
Quarter) |
|
Sales Turnover |
352.600 |
375.100 |
371.900 |
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Other Income |
10.900 |
32.000 |
17.500 |
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Total Income |
363.500 |
407.100 |
389.400 |
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Total Expenditure |
332.100 |
359.700 |
355.800 |
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Operating Profit |
31.400 |
47.400 |
33.600 |
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Interest |
7.300 |
12.000 |
12.000 |
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Gross Profit |
24.100 |
35.400 |
21.600 |
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Depreciation |
14.600 |
14.600 |
16.400 |
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Tax |
0.600 |
1.400 |
0.400 |
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Reported PAT |
7.900 |
18.400 |
0.800 |
200606 Quarter 1 - The above results were reviewed by the audit committee and approved by the board and taken on record at their meeting heldon 28.07.2006. 2.These results are subject to limited review by the statutory auditors of the company , 3. The operations of the copany are under a single broad segment 'Textile intermiadiary Products' which consstitute one single primary segment . 4. The status of the investor complaints as n 30.06.2006 Pending at the beginning Nil, Recived -02, disposed off-02 Unresolved Nil
200609 Quarter 2 - Expenditure Includes Increase)/Decrease in Stock in Trade Rs (27.457)million Consumption of Raw Materials Rs 195.553 million Staff Cost Rs 59.838 million Power & Fuel Rs 60.278 million Other Expenditure Rs 64.505 million Provision for tax includes Current Tax Rs 1.000 million Deferred Tax Rs 1.000 million Fringe Benefit Tax Rs 0.350 million Extraordinary Items includes Profit on Sale of Assets Rs 14.924 million VRS Payment Amortised Rs(6.965)million 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 03 Complaints disposed off during the quarter 03 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit Committee and approved by the Board and taken on record at their meeting held on October 25, 2006. 2. These results are subject to limited review by the Statutory Auditors of the Company. 3. The operations of the Company are under a single broad Segment Textile Intermediary Products which constitute one single primary segment.
200612 Quarter 3 - Expenditure Includes Increase)/Decrease in
Stock in Trade Rs (28.378)million Consumption of Raw Materials Rs 180.199
million Staff Cost Rs 58.529 million Power & Fuel Rs 58.367 million Other
Expenditure Rs 80.125 million Provision for tax includes Deferred Tax Rs 4.000
million Fringe Benefit Tax Rs 0.400 million Extraordinary Items includes Profit
on Sale of Assets Rs(5.508)million VRS Payment Amortised Rs 6.965 million
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 09 Complaints disposed off during the quarter 09 Complaints
unresolved at the end of the quarter Nil 1. The above results were reviewed by
the Audit Committee and approved by the Board and taken on record at their
Meeting held on January 22, 2007. 2. These results are, subject to limited
review by the Statutory Auditors of the Company. 3. The operations of the are
under a single broad Segment 'Textile Intermediary Products' which constitute
one single primary segment. 4. Increase Deferred Tax Liability on account of
substantial capital additions during the year.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.33 |
1.79 |
1.83 |
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Long Term Debt Equity Ratio |
0.38 |
0.58 |
0.72 |
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Current Ratio |
0.82 |
0.83 |
0.87 |
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TURNOVER RATIOS |
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Fixed Assets |
1.29 |
1.34 |
1.35 |
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Inventory |
6.29 |
5.85 |
5.45 |
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Debtors |
23.00 |
18.04 |
19.25 |
|
Interest Cover Ratio |
1.97 |
0.09 |
0.74 |
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Operating Profit Margin (%) |
10.18 |
3.72 |
6.43 |
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Profit Before Interest and Tax Margin (%) |
6.59 |
0.36 |
3.09 |
|
Cash Profit Margin (%) |
6.37 |
(0.10) |
2.27 |
|
Adjusted Net Profit Margin (%) |
2.78 |
(3.47) |
(1.06) |
|
Return on Capital Employed (%) |
22.53 |
1.24 |
10.57 |
|
Return on Net Worth (%) |
18.48 |
(28.72) |
(8.90) |
STOCK PRICES
|
Face Value |
Rs.100/- |
|
High |
Rs.1413.00/- |
|
Low |
Rs.1386.10/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Promoted in 1907 by the late G Kuppuswamy Naidu, Lakshmi
Mills Company (LMC) was incorporated as a public limited company in 1910. The
flagship of the Coimbatore-based Lakshmi group, its associate companies are
Lakshmi Machine Works, Lakshmi Synthetic Machinery Manufacturers and Lakshmi
Auto Looms.
LMC is a composite mill manufacturing a range of cotton, viscose, blended
yarn and a variety of grey and processed cloth. The company has four
manufacturing units located at Coimbatore, Singanallur, Kovilpatti and
Palladam, all in Tamilnadu.
The company's cloth processing is done by its subsidiary, United
Bleachers. LMC exports cotton yarn and grey cloth to the UK, Germany, Italy,
Bangladesh and Japan. In 1977, Coimbatore Cotton Mills was amalgamated with the
company. LMC has yarn processing facilities at Coimbatore which includes
facilities for mercerising and bleaching.
The company was getting Wind Power generated of M/s Das Lagerway Wind
Turbines Limited., under a contract since 1997. Some problem has creeped in
between the owners of the wind power farm M/s Das Lagerway & M/s Pathega
Forgings & Autoparts during 2000-01, the company will not get wind power
any more. Company has also increased the installed capacity of Ring Spindles by
64 Nos.
In 2000-01, there was an increase in production of fabrics on account of
full commissioning for additional looms. And the company is also drafted a
modernisation scheme at the cost of Rs.390.000 Millions and sent it to IDBI for
it's sanction.
OPERATIONS
The Company is operating around 0.155 Millions Ring Spindles in three
locations. As a part of re-structuring weaving activities and scrapping
uneconomical looms, the Company is now operating 245 looms under one roof
consisting of 29 Shuttle less looms and 216 normal Shuttle looms.
During the year, the Company achieved a Gross Sales of Rs.1555.000
Millions including Excise Duty and Sales Tax and Net Sales of Rs.1506.400
Millions. There was marginal improvement in the Net Sales over last year. The
increase was around Rs.40.000 Millions. After meeting all expenses, the Company
could post a profit of Rs.74.109 Millions before taxation and a Net profit of
Rs.64.248 Millions after taxation. Due to the improved operations they expect
that the financial performance of the Company would improve during the
year.
CURRENT INDUSTRIAL TREND
Performance of the Company in the Spinning front continues to be
satisfactory. Fabric front continues to be under price pressure and that the
availability of imported fabrics at relatively cheaper price is affecting the
market to a great extent.
Weaving Sector in the Indian Textile Industry continues to struggle.
Unless the cost of manufacture of the fabric is brought down, it is going to be
a Herculean task to withstand the competition from the imported 'goods.
FUTURE PROSPECTS
The Company has obtained the sanction from the banks for modernizing the
machineries in Palladam Unit to the extent of 42000 spindles at a cost of
Rs.600.000 Millions.
The machines have started arriving and the first phase of 20000 spindles
will be commissioned during the current financial year. The Company will be
implementing the second phase of modernization of 22000 spindles in
2007-08.
The Company is taking up the marketing of Micro Modal Garments under the
Brand Name `TYCHE LIFE' in the current year. The targeted audience is the High
End Consumers in the age group of 14 to 30.
The Company expects to achieve a turnover of around Rs.100.000 Millions
in the current year and Rs.250.000 Millions from the next year onwards.
OUTLOOK
The Indian Textile Industry is looking forward to meet the challenges of
Global Trade. The Industry has to go a long way to meet the challenges and the
Government should continue to extend the financial assistance announced for the
Textile Industry.
The Modernisation Programme under TUF should be continued at least for
the next 3 years and that the weaving and processing activities should be cost
effective under Indian conditions.
Government's comprehensive policies are needed to make the Indian Textile
Industry globally competitive
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENTS
The removal of quota system in the Global Trade has resulted in the
Indian exports going up during the year 2006 vis-a-vis 2005.
Opportunities for growth in this Sector are enormous in view of free
access to World Trade. Large capacities are being built up by big players to
become cost effective and competitive in the Global Trade. The Indian Textile
Industry is bound to improve its share in the Global Trade in the years ahead
provided it is cost competitive and quality oriented with right
deliveries.
OPPORTUNITIES AND THREATS:
Quality, Price and Delivery are the determinant factors in the Global
Trade. However, it is noticed that in view of the high cost of manufacture in
the Indian conditions, fabrics are being imported at very competitive prices
for export purposes. Generally, the fabrics produced in India are not at all
cost effective and also lacking in quality aspects. There is severe threat to
the manufacture of woven fabrics in India from imported fabrics. To that, the
cost of manufacturing activities in the Indian segment will suffer. This can be
overcome only if the cost of manufacture of Indian products is made
competitive. Two factors play a dominant role viz. Power cost and Labour
Productivity. Unless labour productivity is increased alongwith reduction in
power cost, Indian fabric manufacturers will continue to suffer for want of
market on account of high cost.
SEGMENT -WISE OR PRODUCT -WISE
PERFORMANCE:
As the operations of the Company - Spinning and Weaving are under a
single broad segment (Textile Intermediary Products), no further analysis is
needed.
OUTLOOK:
The performance of the Company improved during the year 2005-06 in all
areas. Levels of utilisation have improved both in Spinning and Weaving. The
Company is operating around 0.155 Millions Ring Spindles in the 3 Units and 245
looms in Coimbatore Unit.
Modernisation programmes to the extent of Rs.600.000 Millions have been
got sanctioned for modernizing around 42000 spindles in Palladam Unit. The
first phase of modernization involving 20000 spindles will be completed before
31.3.07. The Unit will be in a position to export yarn meeting the
International Standards. The delay in implementing the first phase was due to
delay in the delivery of machines. The Unit will also take up the modernization
of the balance 22000 spindles in 2007-08 and that these spindles will also
become fully operational before the end of the Financial Year 2007-08.
The Company has made satisfactory progress in the marketing of its Micro
Modal / Micro Modal-Cotton / Micro Tencel yarns. During the year, its turnover
in the Micro Modal products has crossed over Rs.63.000 Millions.
The Company has also taken up the marketing of knitted garments produced
out of Micro Modal / Cotton yarn under the Brand Name 'TYCHE LIFE'. The Company
proposes to manufacture and market knitted garments targetting high end
consumers. The Company proposes to market these products through Net Work of Distributors
and Retailers. The products are likely to hit the market by the end of August
2006. The Company is targeting a turnover of Rs.100.000 Millions in 2006-07 and
that from 2007-08, it hopes to achieve a turnover of Rs.250.000 Millions per
annum in this operation.
The Company is operating only around 245 looms. However, the Loom Shed
operations continues to be causing concern. As mentioned elsewhere, fabric
production in composite Mills is becoming highly uneconomical. The Company is
closely monitoring the manufacturing activities of the Loom Shed.
The cotton crop during the year 2005-06 has been satisfactory. But the
prices for Long Staple Cotton have gone up sky-high and this has caused
considerable inroad into the profitability of the Company.
The company’s fixed assets of important value include land, buildings,
machinery, electric machinery, office equipments, vehicles, canteen equipments
and computer equipments.
The company is in trade terms with
v
Dynopack Industries
v
Lakshmi Paper Cones
v
Pioneer Wovens & Sacks
v
Sri Jagannatha Industries
As per website
details
Lakshmi Mills was established in the year 1910 by the visionary and pioneer late G. Kuppuswamy Naidu.
The history of Lakshmi Mills is in many ways the history of the Textile Industry in Coimbatore. For close to a century Lakshmi Mills has contributed to the development of the industry by promoting self reliance, research, import substitution, exports and technology. The Company has also demonstrated its staying power by ensuring quality and customer satisfaction as the prime objectives. In fact, as a pioneer, Lakshmi Mills today is looked upon with respect and reverence as a company that paved the way for the rest to follow.
The Company celebrated its Golden Jubilee, Diamond Jubilee and Platinum Jubilee
and is now gearing up for the centenary celebration by 2010.
The Company has 3 Units to manufacture yarns and fabrics
at the following places:
|
Unit |
Spindles |
Looms |
Rotors |
|
Coimbatore |
41,952 |
245 |
- |
|
Palladam |
55,055 |
- |
672 |
|
Kovilpatti |
58,512 |
- |
- |
The Annual Turnover of the Company is around Rs. 1500.000 Millions
Products
Yarns
The Company manufactures 100% combed cotton yarn from NE 40s to NE 120s, Polyester Cotton Blended yarn from NE 40s to NE 80s as well as Open End yarn of 10s.
Besides, the Company also manufactures 100% Micro Modal yarn, Micro
Modal/Cotton Blended yarn, 100% Micro Tencel yarn, Tencel/Cotton Blended yarn
in counts NE 40s to 100s.
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.43.39 |
|
UK Pound |
1 |
Rs.85.16 |
|
Euro |
1 |
Rs.57.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
|