MIRA INFORM REPORT
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Report Date : |
02.05.2007 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE CAPITAL LIMITED |
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Registered Office : |
H Block, 1st Floor, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.03.1986 |
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Com. Reg. No.: |
11-165645 |
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CIN No.: [Company Identification No.] |
L65910MH1986PLC165645 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMR15405F |
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PAN No.: [Permanent Account No.] |
AAACR5054J |
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Legal Form : |
Subject is a Public Limited Liability company. The company’s shares
are listed on the Stock Exchanges. |
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Line of Business : |
Non Banking Finance Companies (NBFCs)
providing Fund and Non-Fund Based Financial Services. |
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 164800000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
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Comments : |
Subject is a well-established and reputed company and a part of
Reliance Anil Dhirubhai Ambani progressing well. 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. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long-run. |
LOCATIONS
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Registered/ Corporate Office : |
H Block, 1st Floor, |
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Tel. No.: |
91-22-30327000 |
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Fax No.: |
91-22-30327202 |
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E-Mail : |
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Head Office : |
Avdesh House, 2nd Floor, Pritam Nagar, 1st
Slope, Ellisbridge, Ahmedabad - 380 006, |
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Tel. No.: |
91-79-6576895 |
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Fax No.: |
91-79-657 8070 |
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Factory 1 : |
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Factory 2 : |
Village Meghpar/ Padana, Taluka Lalpur, District Jamnagar-361280, |
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Tel. No.: |
91-288-3011556 |
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Fax No.: |
91-288-3011598 |
DIRECTORS
|
Name : |
Mr. Anil D Ambani |
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Designation : |
Chairman |
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Name : |
Mr. Amitabh Jhunjhunwala |
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Designation : |
Vice Chairman |
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Name : |
Mr. Rajendra P Chitale |
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Designation : |
Director |
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Name : |
Mr. Udyan Bose |
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Designation : |
Additional Director |
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Date of Appointment : |
29.12.2005 |
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Name : |
Mr. C P Jain |
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Designation : |
Additional Director |
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Date of Appointment : |
24.04.2006 |
KEY EXECUTIVES
|
Name : |
Mr. V R Mohan |
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Designation : |
Company Secretary and Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
Percentage of
Holding |
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Promoters |
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|
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AAA Enterprises Private Limited, Anil D Ambani and Others |
|
35.90 |
|
Reliance Capital Ventures Limited |
|
26.96 |
|
Financial
Institutions/Banks/Mutual Funds |
|
0.04 |
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FII’s/ NRI/OCBs |
|
21.38 |
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Bodies Corporate |
|
3.23 |
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Others |
|
12.48 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Non Banking Finance Companies (NBFCs)
providing Fund and Non-Fund Based Financial Services. |
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Products : |
Generic names of principal products/services are :- ·
Asset Financing ·
Lending ·
Investments |
GENERAL INFORMATION
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No. of Employees : |
140 |
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Bankers : |
Ø
Allahabad Bank Ø
ICICI Bank Limited Ø
IDBI Bank Limited Ø
HDFC Bank Limited Ø
Punjab National Bank Ø
Syndicate Bank Ø
UTI Bank Limited |
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Facilities : |
Secured Loans : From Banks : Rs.1675.000 millions Unsecured Loans
: Security Deposit Received – Lease : Rs.743.900 millions |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Pathak H D & Associates Chartered Accountants |
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Parent Company : |
Ø
Reliance Industries Limited |
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Associates/Subsidiaries : |
Subsidiaries: v Reliance Capital Asset Management Limited v Reliance Capital Trustee Company Limited v Reliance General Insurance Company Limited v Reliance Gilts Limited (formerly Reliance Life Insurance Company Limited) Associates: v AAA Enterprises Private Limited v Reliance Industries Limited v Reliance Energy Limited v Reliance Infocomm Limited v Reliance Communications Infrastructure Limited v Reliance Telecom Limited v Reliance Capital Ventures Limited v Reliance Energy Ventures Limited v Reliance Communication Ventures Limited v Reliance Natural Resources Limited v Reliance Land Private Limited v Reliance Share & Stock Brokers Private Limited v WorldTel Holding Limited v Reliance Life Insurance Company Limited (formerly AMP Sanmar Life Insurance Company Limited) v Viscount Management (Alpha) Services Limited v Viscount Management Services Limited v Ammolite Holdings Limited v
Adlabs Films Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300000000 |
Equity Shares |
Rs.10/- each |
Rs.3000.000 millions |
|
100000000 |
Preference Shares |
Rs.10/- each |
Rs.1000.000 millions |
|
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Total |
|
Rs.4000.000
millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
224210451 |
Equity Shares |
Rs.10/- each |
Rs.2242.100
millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
222866245 |
Equity Shares |
Rs.10/- each |
Rs.2228.700
millions |
|
|
Add : Forfeited Shares |
|
Rs.5.300
millions |
|
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Total |
|
Rs.2234.000 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 |
2234.000 |
1278.400 |
1279.700 |
|
|
2] Equity Warrants Issued and Subscribed |
494.800 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
38495.800 |
13100.800 |
12718.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
41224.600 |
14379.200 |
13998.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1675.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
743.900 |
13135.500 |
16334.700 |
|
|
TOTAL BORROWING |
2418.900 |
13135.500 |
16334.700 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
43643.500 |
27514.700 |
30332.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1683.500 |
2135.400 |
2571.000 |
|
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Capital work-in-progress |
131.300 |
130.500 |
189.700 |
|
|
|
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|
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|
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INVESTMENT |
22306.200 |
16440.000 |
15414.100 |
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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 |
61.900 |
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|
|
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Sundry Debtors |
430.200 |
23.900 |
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Cash & Bank Balances |
1869.500 |
54.500 |
4710.300 |
|
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Other Current Assets |
6142.600 |
4767.700 |
|
|
|
Loans & Advances |
12045.600 |
1486.900 |
12144.600 |
|
Total
Current Assets |
20549.800
|
9393.500 |
16854.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
174.700 |
117.400 |
4696.900 |
|
|
Provisions |
852.600 |
467.300 |
|
|
Total
Current Liabilities |
1027.300
|
584.700 |
4696.900 |
|
|
Net Current Assets |
19522.500
|
8808.800 |
12158.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
43643.500 |
27514.700 |
30332.800 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
6520.200 |
2956.900 |
3356.500 |
|
|
Other Income |
|
|
211.400 |
|
|
Total Income |
6520.200 |
2956.900 |
3567.900 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
5506.100 |
1112.100 |
1057.900 |
|
|
Provision for Taxation |
130.000 |
54.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
5376.100 |
1058.100 |
1057.900 |
|
|
|
|
|
|
|
|
|
Others |
0.000 |
2741.000 |
NA |
|
Total Imports |
0.000 |
2741.000 |
NA |
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|
|
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Expenditures : |
|
|
|
|
|
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Administrative Expenses |
330.200 |
56.300 |
85.200 |
|
|
Interest |
452.000 |
1510.800 |
2003.900 |
|
|
Depreciation & Amortization |
231.900 |
277.700 |
420.900 |
|
|
Less : Transferred to General Reserve |
NA |
(140.500) |
NA |
|
Total Expenditure |
1014.100 |
1844.800 |
2510.000 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 (Full year) |
|
Sales Turnover |
|
|
8836.500 |
|
Other Income |
|
|
2.100 |
|
Total Income |
|
|
8838.600 |
|
Total Expenditure |
|
|
1009.800 |
|
Operating Profit |
|
|
7828.800 |
|
Interest |
|
|
426.300 |
|
Gross Profit |
|
|
7402.500 |
|
Depreciation |
|
|
70.700 |
|
Tax |
|
|
780.000 |
|
Reported PAT |
|
|
6461.800 |
|
Dividend (%) |
|
|
350.000 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.28 |
1.04 |
1.24 |
|
Long Term Debt-Equity Ratio |
0.25 |
1.04 |
1.24 |
|
Current Ratio |
7.92 |
4.97 |
4.43 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.47 |
0.58 |
0.51 |
|
Inventory |
4.33 |
0.88 |
0.94 |
|
Debtors |
29.75 |
13.77 |
10.31 |
|
Interest Cover Ratio |
13.18 |
1.74 |
1.53 |
|
Operating Profit Margin(%) |
95.11 |
98.19 |
97.61 |
|
Profit Before Interest And Tax Margin(%) |
88.22 |
84.22 |
85.82 |
|
Cash Profit Margin(%) |
86.49 |
47.94 |
41.45 |
|
Adjusted Net Profit Margin(%) |
79.60 |
33.98 |
29.65 |
|
Return On Capital Employed(%) |
16.86 |
9.07 |
9.97 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.718.00 |
|
Low |
Rs.696.25 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on 5th March 1986 at Ahmedabad
in
Formerly known as Reliance Capital and Finance Trust and was promoted in
1986 at Ahmedabad, in State of
In January 1995, the company came out with a rights-cum-public issue at
a premium of Rs. 130/- each, aggregating Rs. 6000.00 millions to strengthen the
company’s equity base and meet its long-term working capital requirements.
The company was granted approval by the Securities and Exchange Board of
India (SEBI) to act as an approved intermediary under the provision of SEBI’s
Securities Lending Scheme, 1997.
During 1998-99, the company disinvested part of its holding in Reliance
Share and Stock Broker and
In financial year 1993 the company raised Rs. 874.8 millions by a right
issue of Rs. 10 shares at a premium of Rs. 30.
The company has acquired membership of Over The Counter Stock Exchange
of India (OTCEI) and engages in market making for several scrips.
The company also has category I Merchant Banker certificate and corporate
membership of Mumbai Stock Exchange. The company has set up several
subsidiaries for diversifying and broadening the base in the financial sector.
The company’s subsidiaries have membership of Ahmedabad Stock Exchange
and National Stock Exchange.
BUSINESS
Subject is one of
The company has four wholly owned subsidiaries. Reliance Capital Assets
Management is the investment manager of Reliance Capital Mutual Fund, Reliance
Capital Trustee Company, is the Trustee Company of the Reliance Capital Mutual
Fund, Reliance Net Private Limited and observer Network Private Limited.
The company is shifting its focus from a traditional NBFC to a special
purpose vehicle and venture capital outfit developing infrastructure projects
and investing in Infotech, media, internet and biotech start-ups, will help it
boost its performance in the coming year. The company’s fee-based activities
include a packaged deal offer to the corporate besides like issue management,
underwriting, corporate advisory, corporate valuation, restructuring of
operations, privatisation, divestment, mergers and acquisitions.
The company has also obtained approval from the Reserve Bank of India
(RBI) and Insurance Regulatory and Development Authority (IRDA) for financial
participation in the insurance sector. It has firmed up plans to enter both
life and general insurance categories and accordingly has floated the two
companies Reliance General Insurance Company and Reliance Life Insurance
Company.
Fixed Assets :
ASSETS ON LEASE
v Plant & Machinery
v Furniture & Finings
v Ships
v Aircraft
v Office & Other Equipments
ASSETS FOR OWN USE
v Buildings
v Furniture & Fittings
v Office & Other Equipments
v Motor Vehicles
CAPITAL WORK-IN-PROGRESS
v
Assets For Own use
Financial
Performance:
Subject’s gross income for the Sinancia! year ended March 31,2006
increased to Rs 6520.200 millions, from Rs 2956.900 millions in the previous
year, registering a growth of over 120 percent.
The operating profit (PBDIT) of the Company increased 113 percent to Rs
6190 millions during the year, up from Rs.2900.600 millions in the previous
year.
Interest expenses for the year declined 70 percent to Rs 452 millions,
from Rs 1510.800 millions, in the previous year.
Depreciation was at Rs 231.900 millions as against Ro 277.700 millions
in the previous year.
Provision for taxation during the year was Rs 130 millions.
Net profit for the year increased by ever 400 percent to Rs 5376.100
millions from Rs 1058.100 millions in the previous year. An amount of Rs
1075.300 millions was transferred to Statutory Reserve Fund pursuant to Section
45IC of the Reserve Bank of India Act, 1934, and an amount of Rs 537.700
millions was transferred to the General Reserve during the year under review.
The Company's Net worth as on March 31,2006, stood at Rs 41224.600
millions, as against Rs 14379.200 millions last year.
Resources and Liquidity:
During She year; Subject raised over Rs. 22000 millions through a
preferential issue of equity shares/ warrants at a price of Rs. 228 per share,
to strengthen its financial position, and to generate long term resources for
accelerating its future growth plans. Pursuant to the said issue, 7,62,60,001
equity shares and 4,10,00,000 warrants were allotted to the promoter group and
other financial investors. As on March 31,2006, 1,93,00,000 warrants have been
converted into equity shares, and the paid up equity share capital of the
company has increased to Rs 2230 millions.
Subject's debt equity ratio as on March 31, 2006, stands at a very
conservative level of 0.06:1. The company has not accepted any deposits from
the public.
Scheme of Amalgamation and Arrangement
During the year under review, the Directors considered and approved a
proposal for the amalgamation and arrangement of Reliance Capital Ventures
Limited (RCVL) with the Company. RCL has filed a petition before the High Court
of Gujarat at Ahmedabad, seeking its approval for the Scheme of Amalgamation
and Arrangement
between Reliance Capital Ventures Limited (RCVL) and the Company.
The scheme of amalgamation envisages a share exchange ratio of 5 (five)
equity shares of the face value of Rs. 10/- each of the Company, for every 100
(one hundred) equity shares of the face value of RG. 10/- each of RCVL, and the
consequent cancellation of the shares of Subject held by RCVL The share
exchange ratio is based on the number of shares of RCL held by RCVL, and is as
recommended by KPMG India Private Limited, a leading and reputed International
Valuer.
Acquisition of Adtabs Films Limited
During the year, the Company along with its affiliate Reliance Land
Private Limited, acquired a controlling stake in Adlabs Films Limited, a
leading company engaged in the entertainment sector, through a preferential
allotment of shares, and by making an open offer in terms of the Securities and
Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 1997, Pursuant to such acquisition, the Company and Reliance Land
Private Limited became Promoters of Adlabs Films Limited.
Business Review:
Subject's investment portfolio stood at Rs. 22310 millions, as on March
31, 2006, at cost. The investment in infrastructure projects steed at Rs 9270
millions. Subject's strategy for its private equity and proprietary investment
portfolio is to focus on asset quality and asset mix to achieve superior
returns. RCL is increasingly diversifying its scope of operations into a
variety of avenues as afforded under the Indian NBFC regulatory framework,
through its interests in asset management and mutual funds, life and general
insurance, stock broking and other activities in financial services
Industry Structure and Developments:
The operations of Non Banking Financial Companies (NBFCs) are regulated
and supervised by the Reserve Bank of India vide powers conferred under chapter
III- B of Reserve Bank of India Act, 1 934. The regulatory and supervisory
framework for NBFCs have been continuously streng Siened in order to ensure
strong and healthy functioning, by limiting excessive risk taking practices and
protecting the interest of deposit holders.
The NBFC sector in
Opportunities:
With GDP growth forecasts of 7%-8% over the next few years, the Indian
economy will continue to provide several attractive growth opportunities. The
increased thrust on the infrastructure sector, including power, roads, ports,
telecom and other urban infrastructure projects, will continue to provide
excellent investment opportunities in the future.
In addition, the services sector, which is growing at rapid pace and
contributes substantially to GDP, will provide many new opportunities for the
financial services industry in
Subject sees huge growth opportunities in each of its existing business
areas, and will also be expanding the focus of activities to new areas, arising
from !he strong growth momentum in the economy.
Challenges
The NBFC sector continues to face competitive pressures from the banking
sector and financial institutions, due to their increased penetration in the
consumer financing market, with comparatively low cost of funds at their
disposal. The spreads in the lending business have also narrowed considerably,
bringing risk-adjusted margins to generally unviable levels.
Subject's strong financial position, reflected by its low debt equity
ratio, and adoption of prudent business strategies have enabled it to
consistently post satisfactory performance despite these difficult conditions.
Outlook
The financial services sector is one of the key growth sectors of the
economy. Globally, 5 of the top 20 Fortune 500 companies are financial services
companies. Nearly 16% of total revenues and 28% of total profits of all Fortune
500 companies are generated by the financial services sector, the largest by
any single sector.
Subject intends to actively pursue growth opportunities in the fast
growing financial services sector in the country, to become a full service
financial services company with activities encompassing, inter alia, asset
management and mutual funds, life and general insurance, stock broking, private
equity and proprietary investments, and other financial services.
Risks and Concerns:
Subject is exposed to specific risks that are particular to its
businesses and the environment within which it operates, including interest
rate volatility, economic cycle, market risk, and credit risk. RCL manages
these risks by maintaining a conservative financial profile and by following
prudent business and risk management practices.
Group Companies
Reliance Mutual Fund (RMF)
Reliance Capital Asset Management (RCAM)
During the year, Reliance Mutual Fund emerged as the largest Private sector
mutual fund in the country. The assets under management increased to Rs 246700
millions as on 31st March 2006, from Rs 95430 millions as on 31st
March 2005, an increase of 159%.
The aggregate equity corpus under management has increased to Rs 150100
millions - the largest in the country, from Rs 39910 millions as on 31st
March 2005, an increase of 276%.
Reliance Mutual Fund had nearly 2.100 millions investors as on 31st
March 2006 - the largest investor base amongst the private sector Mutual Funds in
the country. The investor base increased by 341% in the previous financial
year.
Reliance Mutual Fund has been adjudged as
The net profit of RCAM was Rs 300 millions for the period under review,
compared to Rs.125.500 millions in the previous year.
Reliance Life
Insurance
During the period under review, Reliance Capital Limited acquired AMP
Sanmar Life Insurance Company Limited, with the approval of Insurance
Regulatory and Development Authority (IRDA).
Pursuant to the acquisition, AMP Sanmar Life Insurance has been renamed
as Reliance Life Insurance Company Limited.
The acquisition enables subject to enter the exciting growth area of
life insurance, in one of the world's fastest growing, and most under-served
markets.
The Premium Income increased to Rs 2240 millions from Rs 1070 millions,
an increase of 109%, within a short span of 6 months of RCL taking over the
company.
Reliance Life is committed to attaining leadership rankings in the
industry within the next few years.
Reliance General
Insurance
Reliance General Insurance (RGI) offers home insurance, property
insurance, auto insurance, travel insurance, marine insurance, commercial
insurance and other speciality insurance products.
The Gross Direct Premium for the financial year ended 31st March 2006
was Rs 1630 millions.
The Net Profit was Rs 144 millions for the period under review, an
increase of 148%.
Shri Anil D.Ambani, aged 47 years is an MBA from the
Shri Udayan Bose, aged 57 years former Managing Director Lazard U.K. and
USA and founder Chairman Lazard India, has over 35 years of domestic and
international experience in banking, corporate finance, project finance and
restructuring. He has handled several domestic and cross border transactions in
He is the founder Chairman and Principal of Tamara Capital Partners Re
Limited. He is also the Chairman of Thomas Cook Limited. He was formerly the
Regional Director of Deutsche Bank. He is also Senior Adviser to the
Commonwealth Business Council in the
Shri C.P. Jain, aged 60 years has an illustrious career spanning over 40
years of contribution in the fields of financial management, general
management, strategic management and business leadership. A law graduate, he is
a fellow member of the Institute of Chartered Accountants of India with an
advanced diploma in Management. He joined the Board of NTPC in 1993 as Director
(Finance) and was elevated as Chairman & Managing Director in September
2000. He was Chairman of the Global Studies Committee of World Energy Council
(WEC), world's
largest energy NGO with nearly hundred member-nations. He has been on
several important committees of the Government of India, latest being the
'Adhoc Group of Experts on Empowerment of CPSEs1. He was Chairman of Standing
Conference of Public Enterprises (SCOPE) between April 2003 and March 2005.
|
Contingent
Liabilities |
As
on 31.03.2006 |
|
Guarantees to Banks and Financial Institutions on behalf of third
parties |
696.200 |
|
Estimated amount of contracts remaining to be executed on capital
account (net of advances) |
3.500 |
|
Claims against the Company not acknowledged as debt (Sales Tax) |
1.100 |
v
The Company has filed a Scheme of Amalgamation and
Arrangement in the High Court of Gujarat at Ahmedabad for amalgamation of
Reliance Capital Ventures Limited with the Company.
v
During the year a part of the Stock in Trade held
by the Company has been ^classified as Investments at book value or market
price whichever is lower. There is no impact on the profit for the year.
Contingent
Liability (Associates)
Guarantees to Banks and Financial Institutions on behalf of third
parties : Rs.328.500 millions
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or anti-terrorism
sanction laws or whose assets were seized, blocked, frozen or ordered forfeited
for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.90 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.55.47 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
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 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
|