MIRA
INFORM REPORT
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Report Date : |
03.05.2007 |
IDENTIFICATION DETAILS
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Name : |
SUNDARAM
FINANCE LIMITED |
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Registered Office : |
21, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.08.1954 |
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Com. Reg. No.: |
18-2429 |
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CIN No.: [Company
Identification No.] |
U65191TN1954PLC002429 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES00556D |
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Legal Form : |
A
public limited liability company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
It is
a finance company engaged in hire purchase finance on commercial vehicles and
equipment leasing. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 32000000 |
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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 finance company having fine track of
performance and financial status. The
company is backed by TVS Group. Available
information indicates high financial responsibility of the company. Financial position is good. Business is active. Payments are usually correct and as per
commitments. The
company can be considered good for any normal business dealings. It
can be regarded as a promising business partner in a long-run. |
LOCATIONS
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Registered Office : |
21, |
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Tel. No.: |
91 – 44 – 2852 1181 / 0391 / 28558236 |
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Fax No.: |
91 – 44 – 2852 0456 / 28586641 / 28550290 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. S.
Viji |
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Designation : |
Chairman |
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Name : |
Mr. S. Ram |
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Designation : |
Director |
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Name : |
Mr. S. Narayanan |
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Designation : |
Director |
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Name : |
Mr. A. Rangaswami |
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Designation : |
Director |
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Name : |
Mr. S.
Padmanabhan |
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Designation : |
Director |
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Name : |
Mr. T.R. Seshadri |
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Designation : |
Director |
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Name : |
Mr. G K Raman |
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Designation : |
Wholetime Director |
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Name : |
Mr. T T Srinivasaraghavan |
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Designation : |
Managing Director |
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Name : |
Mr. Srinivas Acharya |
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Designation : |
Deputy Managing Director |
KEY EXECUTIVES
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Audit Committee : |
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Mr. S Padmanabhan |
Chairman |
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Mr. A Rangaswami |
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Mr. S Viji |
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Share Transfer & Investor Relations Committee : |
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Mr. S Padmanabhan |
Chairman |
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Mr. A Rangaswami |
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Mr. T T Srinivasaraghavan |
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Asset Liability Management Committee : |
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Mr. T T Srinivasaraghavan |
Chairman |
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Mr. Srinivas Acharya |
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Mr. S Venkatesan |
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Mr. A |
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Mr. M Ramaswamy |
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Mr. S Venkatesan |
Executive Director (Finance) & Secretary |
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Senior Management : |
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Mr. S Venkatesan |
Executive Director (Finance) & Secretary |
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Mr. P |
Executive Director (Operations) |
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Mr. A |
Executive Director (Operations) |
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Mr. Paramesh
Krishnaier |
Sr. Vice President (Operations) |
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Mr. K
Swaminathan |
Sr. Vice President (Sundaram Infotech Solutions) |
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Mr. M Ramaswamy |
Sr. Vice President (Finance Ł Accounts) |
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Ms. Harsha Viji |
Sr. Vice President (Special Projects) |
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Mr. G C Rangan |
Vice President (Operations) |
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Mr. S Ravindran |
Vice President (Operations) |
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Mr. P
Viswanathan |
Vice President & Deputy Secretary |
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Mr. J
Raghunathan |
Vice President (Sundaram Infotech Solutions) |
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Mr. S Sivakumar |
General Manager (Operations) |
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Mr. S Srinivasan |
General Manager (Operations) |
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Mr. T |
General Manager (Operations) |
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Mr. M J Kulkarni |
General Manager (Operations) |
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Mr. S
Ramachandran |
General Manager (Audit) |
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Mr. K Manivannan |
General Manager (Training) |
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Mr. S Santhanam |
General Manager (Sundaram Business Services) |
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Mr. Venkatesh
Kumaraswami |
General Manager (Sundaram Business Services) |
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Mr. K Sankara
Kumar |
General Manager (Distribution) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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Percentage of
Holding |
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Promoters |
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36.94 % |
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Banks,
Financial Institutions, Insurance Companies (Central/State
Govt.Institutions/Non-Govt. Intns) |
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6.83 % |
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FIIs and NRIs |
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11.28 % |
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Mutual Funds & UTI |
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2.58 % |
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Public |
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42.37 % |
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Total |
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100.00 % |
BUSINESS DETAILS
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Line of Business : |
It is
a finance company engaged in hire purchase finance on commercial vehicles and
equipment leasing. |
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Products : |
Hire Purchase Leasing Hypothecation Loan |
GENERAL INFORMATION
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No. of Employees : |
400 |
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Bankers : |
Ř State Bank of Ř State Bank of
Travancore Ř State Bank of Ř State Bank of
Saurashtra Ř State Bank of Ř Indian Overseas
Bank Ř Indian Bank Ř United Bank of Ř The Hongkong and
Ř Banking
Corporation Limited Ř Bank of Ř Syndicate Bank Ř UCO Bank Ř HDFC Bank
Limited Ř IDBI Bank
Limited Ř Standard
Chartered Bank Ř Canara Bank Ř ABN-Amro Bank
N.V. Ř Citibank N.A. |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya and
Company Chartered Accountants Chennai |
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Memberships : |
Confederation
of Indian Industry |
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Parent Company |
TVS
Group |
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Subsidiaries : |
Ř
Sundaram BNP Paribas Asset Management Company
Limited Ř
Sundaram Home Finance Limited Ř
Royal Sundaram Alliance Insurance Company Limited Ř
Sundaram BNP Paribas Trustee Company Limited Ř
Sundaram Finance Distribution Limited Ř
LGF Services Limited Ř
Sundaram Infotech Solutions Limited Ř
Sundaram Business Services Limited |
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Associates : |
Ř
Axles India Limited Ř
Turbo Energy Limited Ř
Transenergy Limited Ř
Sundaram Dynacast Private Limited Ř
InFreight Technologies India Limited Ř
Sundaram Medical Foundation Ř
Sundaram BNP Paribas Mutual Fund |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 1000.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2,77,75,965 |
Equity Shares |
Rs.10/- each |
Rs. 277.760
Millions |
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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 |
277.760 |
240.000 |
240.000 |
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2] Share Application Money |
0.000 |
37.760 |
0.000 |
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3] Reserves & Surplus |
7830.570 |
6552.214 |
4992.441 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
8108.330 |
6829.974 |
5232.441 |
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LOAN FUNDS |
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1] Secured Loans |
31615.503 |
23259.624 |
16242.389 |
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2] Unsecured Loans |
13129.386 |
14804.168 |
9608.827 |
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TOTAL BORROWING |
44744.889 |
38063.792 |
25851.216 |
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DEFERRED TAX LIABILITIES |
0.000 |
19.470 |
210.932 |
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TOTAL |
52853.219 |
44913.236 |
31294.589 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1589.623 |
1888.923 |
2338.919 |
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Capital work-in-progress |
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INVESTMENT |
4726.049 |
3111.318 |
2865.592 |
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DEFERREX TAX ASSETS |
77.388 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
4296.353
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4756.445
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4285.178 |
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Interest accrued on investments |
15.762
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21.429
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17.764 |
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Cash & Bank
Balances |
2111.920
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1003.907
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706.663 |
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SFL Shares Trust |
97.441
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97.441
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0.000 |
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Loans & Advances |
43312.014
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36925.814
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23892.929 |
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Total Current Assets |
49833.490
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42805.036
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28902.534 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
2522.300
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2336.233
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2129.035 |
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Provisions |
851.031
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555.808
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683.421 |
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Total Current Liabilities |
3373.331
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2892.041
|
2812.456 |
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Net Current Assets |
46460.159
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39912.995
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26090.078 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
52853.219 |
44913.236 |
31294.589 |
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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 |
4839.826 |
4416.074 |
3578.857 |
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Other Income |
1118.709 |
174.807 |
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Total Income |
5958.535 |
4590.881 |
3578.857 |
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Profit/(Loss) Before Tax |
2088.064 |
1223.800 |
828.700 |
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Provision for Taxation |
382.142 |
463.900 |
272.500 |
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Profit/(Loss) After Tax |
1705.922 |
759.900 |
556.200 |
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Earnings in Foreign Currency : |
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Export Earnings |
29.528 |
7.988 |
9.112 |
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Total Earnings |
29.528 |
7.988 |
9.112 |
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Imports : |
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Capital Goods |
7.073 |
5.846 |
15.864 |
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Total Imports |
7.073 |
5.846 |
15.864 |
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Expenditures : |
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Financial
Expenses |
2619.426 |
2148.391 |
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Establishment
Expenses |
518.856 |
483.021 |
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Administrative and
Other Expenses |
475.772 |
458.870 |
2956.500 |
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Provisions and
Write Off |
72.409 |
55.123 |
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Depreciation |
184.008 |
221.619 |
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Total Expenditure |
3870.471 |
3367.024 |
2956.500 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
|
Sales
Turnover |
1289.700 |
1474.100 |
1676.700 |
|
Other
Income |
33.300 |
108.700 |
34.200 |
|
Total
Income |
1323.000 |
1582.800 |
1710.900 |
|
Total
Expenditure |
272.200 |
285.600 |
336.800 |
|
Operating
Profit |
1050.800 |
1297.200 |
1374.100 |
|
Interest |
754.100 |
890.800 |
989.600 |
|
Gross
Profit |
296.700 |
406.400 |
384.500 |
|
Depreciation |
45.300 |
54.800 |
57.100 |
|
Tax |
78.200 |
108.000 |
100.900 |
|
Reported
PAT |
173.200 |
243.600 |
226.500 |
Notes:
200606
Quarter 1 –
EPS is Basic & Diluted 1. The above results were taken on
record by the Board of Directors at their meeting held on 28th July 2006. 2.
Income Deferment and Provision for Non-Performing Assets have been made on an
estimated basis. 3. The Company is engaged primarily in the business of
financing and accordingly there is no separate reportable segment as
perAccoun6ng Standard (AS-17)' Segment Reporting'. 4. The Statutory Auditors
have carried out a Limited Review of the financial results for the quarter
ended 30th June 2006. 5. No investor complaints were received during the
quarter and none was pending disposal at the beginning and end of the quarter.
200609
Quarter 2 –
EPS is Basic & Diluted 1. The above results were taken
on record by the Board of Directors at their meeting held on 30th October 2006.
2. Income deferment and provision for Non-Performing Assets have been made on
an estimated basis. 3. The Company is engaged primarily in the business of
financing and accordingly there is no separate report segment as per Accounting
Standard (AS-1 7)'Segment Reporting'. 4. The Statutory Auditors have carried
out a Limited Review of the financial results for the quarter en 30th September
2006. 5. No investor complaints were received during the quarter and none was
pending disposal at the beginning end of the quarter.
200612
Quarter 3 –
1. The above results were taken on record by the Board of
Directors at their meeting held on 31stJanuary2007. 2. Income deferment and
Provision for Non-Performing Assets have been made on an estimated basis. 3.
The Company is engaged primarily in the business of financing and accordingly
there is no separate reportable segment as per Accounting Standard (AS-1
7'Segment Reporting. 4. The Statutory Auditors have carried out a Limited
Review of the financial results for the quarter ended 31st December
2006. 5. No investor complaints were received during the quarter and none was
pending disposal at the beginning and end of the quarter.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
5.46 |
5.30 |
4.73 |
|
Long
Term Debt-Equity Ratio |
3.68 |
3.77 |
3.43 |
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Current
Ratio |
2.47 |
2.59 |
2.44 |
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TURNOVER
RATIOS |
|
|
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|
Fixed
Assets |
1.14 |
0.90 |
0.65 |
|
Inventory |
1.60 |
1.35 |
0.80 |
|
Debtors |
79.88 |
69.93 |
71.39 |
|
Interest
Cover Ratio |
1.80 |
1.57 |
1.53 |
|
Operating
Profit Margin(%) |
81.89 |
77.86 |
76.05 |
|
Profit
Before Interest And Tax Margin(%) |
74.22 |
62.67 |
57.48 |
|
Cash
Profit Margin(%) |
34.57 |
29.32 |
31.87 |
|
Adjusted
Net Profit Margin(%) |
26.90 |
14.12 |
13.31 |
|
Return
On Capital Employed(%) |
9.75 |
8.88 |
8.31 |
|
Return
On Net Worth(%) |
22.90 |
12.64 |
11.02 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.417.95/- |
|
Low |
Rs.391.00/- |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
v
Plant and Machinery
v
Furniture/Office
v
Equipment
v
Computer Software
v
Vehicles
v
Office Equipments
History
Sundaram Finance (SFL) was promoted by Madras Motor
Insurance Company, a part of the reputed TVS Group. The Company was
incorporated in 1954. It became a public limited company in 1961 and went
public in 1972. The main business of the company includes hire purchase and
lease financing of commercial vehicles, cars and machinery. It also undertakes
short-term activities such as bill discounting and commercial mortgage lending.
SFL achieved its leadership position by a unique combination of traditional
conservatism and judicious dynamism. Faith, Depositor Confidence, Institutional
Trust, Investor Steadfastness & Employee loyalty are the five pillars to
support the strong edifice of the company. It set industry standards by
computerising and networking all its offices through a variety of communication
media including VSAT installations. These ensure efficient and smooth
functioning of all its systems and procedures resulting in better customer
service. The company allotted bonus shares in the ratio of 1:1 in Nov.
1995.
The subsidiaries of the company are Sundaram Home Finance Limited, Sundaram
Asset Management Company Limited, Royal Sundaram Alliance Insurance Company
Limited, Sundaram Finance Distribution Limited, LGF Services Private Limited
and Sundaram Finance Trustee Company Limited
As part of diversification and to provided more financial service to the
customers, the company entered in to various collaboration and joint ventures.
It formed an asset management company called Sundaram Newton Asset Management
Company Private Limited in collaboration with Newton Management,
During 1999-2000, India Equipment Leasing (IEL), Aparajita Finance Company
(APC), Balika Finance Company (BFC) & Paramjyothi Finance Company (PFC)
were amalgamated with the company. The company paid a total consideration of Rs
201 Millions for the acquisition of shares of the amalgamating companies.
During 2000-2001, Sundaram Finance Services (SFSL) was amalgamated with the
company. Subsequently Sundaram Finance Securities (SFSec.) became a
wholly-owned subsidiary of the company. Further during the year it promoted
Fiat Sundaram Auto Finance Limited, a joint venture with
The Company has merged Lakshmi General Finance Limited (LGF) with itself with
effect from 1st April 2004. According to the scheme of merger the company has
issued 3775965 equity shares of Rs.10/- each to the shareholders of LGF in the
ratio of 1:1.52. Consequent to this merger the company's paid up capital
increased to Rs.277.800 Millions.
AWARDS AND RECOGNITIONS
The company's IT division, Sundaram Infotech Solutions (SIS) was accorded the
Microsoft Gold Certified Partner status with Microsoft Business Solutions
competency, only the second Indian company to be so recognised in this
area.
SIS also achieved ISO/IEC 27001:2005 certification for its Information Security
Management System.
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
The Indian Economy registered another year of impressive growth during 2005-06,
with GDP growth climbing to 8.4%, from 7.5% in 2004-05, owing largely to
sustained growth in the industry and services sectors and a growing world
economy, despite record high crude oil prices. Another positive feature was
that the growth was accompanied by continued maintenance of relative price
stability. Agricultural growth has been estimated at 3.9%, reviving from a low
of 0.7% in 2004-05, thanks to a near normal monsoon. Industrial output improved
during 2005-06 mainly due to acceleration of growth in the manufacturing
sector, which has been estimated at 9%. Sustained expansion in domestic as well
as export demand, increased capacity utilisation and improved customer
confidence were some of the key factors for the improvement in the
manufacturing sector. The services sector continued to perform impressively,
clocking a growth of 10.1%.
The country's balance of payments position remained comfortable during the
year. Exports are estimated to have increased by 24.7%, in dollar terms, while
imports grew by 31.5%. Notwithstanding the sharply higher international crude
prices, significant outflows on redemption of the India Millennium Bonds and a
widening current account deficit, India's foreign exchange reserves increased
by USD 10.1 billion, from USD 141.5 billion as at end-March 2005 to USD 151.6
billion as at end-March 2006.
The inflationary situation remained benign, despite high crude oil prices,
partially due to the incomplete pass-through of increases in international oil
prices into the domestic economy. The average inflation, based on movement in
the wholesale price index (WPI) stood at 4% compared to 5.1% in the previous
year. The Fiscal deficit has been estimated at 4.1%, lower than the budgeted
level of 4.3%, mainly on account of a reduction in the revenue deficit, a
decline in capital outlay and proceeds from disinvestments.
For the second year in succession, the demand for bank funds exceeded deposit
mobilisation. Combined with the IMD redemption, this resulted in strained
liquidity, especially in the last quarter of the financial year, pushing
interest rates up by as much as 100 basis points between January and March. One
year G Sec yields stood at 6.54% as at end-March 2006, as against 5.84% a year
ago. The capital markets remained buoyant and leading stock market indices touched
record highs during the year.
AUTOMOTIVE SECTOR
The automotive sector recorded modest growth during the year. Sales of medium
and heavy commercial vehicles registered a growth of 4.5%, significantly lower
than the growth rates of the past three years. Sales of Light commercial
vehicles grew by 19.4% (PY - 22%), driven significantly by growth in the 'sub
3.5 tonne' category. Sales of cars and multi-utility vehicles grew by 7.7% (PY
- 18%) during the year. After three years of high growth rates, the automotive
industry would appear to have slipped into lower gear, notwithstanding the easy
availability of low cost finance for most part of the year.
OPERATING & FINANCIAL PERFORMANCE
The Company recorded hire purchase and loan disbursements of Rs.34220 Millions
during the year, as against Rs.28590 Millions in the previous year, registering
a growth of 20%. This translates to a Compounded Annual Growth Rate of 30.72%
over the last 3 years. The gross receivables of the company, as at 31st
March 2006, stood at Rs. 49710 Millions as against Rs.44600 Millions in the
previous year.
The Company's continuing emphasis on quality has ensured that the performance
of the core retail portfolio remained excellent, with gross and net NPAs
standing at 0.43% (PY - 0.53%) and 0.35% (PY - 0.39%) respectively, probably
the best in the industry. While constantly exploring new opportunities and
expanding into newer geographies, the company's adherence to its core
philosophy of building sustainable, long term relationships has ensured that
growth is never achieved at the cost of quality. On an overall basis, standard
assets stood at 98.42% and net NPAs stood at 0.80% of total business assets as
on 31.03.2006 as against 98.49% and 0.45% respectively in the previous
year.
Gross income for the year from hire purchase, hypothecation loans and leasing
grew by 9% over last year. With growth rates in the automotive sector slowing
down, competition for the available business continued to be acute.
Consequently, margins were under severe pressure for most part of the year.
However, with liquidity tightening towards the end of the year, lending rates
moved up marginally. Establishment and administrative expenses have been
consistent with the growth in business. The Company continues to focus on new
opportunities to improve profitability.
The net profit for the year was Rs. 1705.900 Millions of which Rs.881.300
Millions was on account of the divestment of 49.90% shareholding in Sundaram
Asset Management Company Limited in favour of BNP Paribas Asset Management
Group, France. Net profit from ongoing operations for the year was Rs. 824.600
Millions. The company's net-worth stood at Rs. 8108.300 Millions as on
31.3.2006, while Capital Adequacy (CRAR) at 13.75% was comfortably higher than
the statutory requirement of 12%.
RESOURCE MOBILISATION
Deposits
The Company mobilised fresh deposits during 2005-06 aggregating to Rs.612.700
Millions Renewal of deposits matured during the year amounted to Rs.2387.300
Millions, representing 63% of the matured deposits. Deposits outstanding at the
year-end were at Rs.6279.800 Millions and the number of depositors exceeded
268000.
As at the year-end, 4542 deposit receipts amounting to Rs. 107.000 Millions,
had matured for payment and were due to be claimed or renewed. After close
follow-up of repayments/ renewals, the figures are currently down to 2533 and
Rs.51.900 Millions respectively. Steps are continuously being taken to arrange
for repayment/renewal of these deposits.
|
Contingent
liabilities in respect of |
As on 31.03.2006
[Rs in Millions] |
|
a) Liability - |
|
|
To Banks - on
Cheques discounted |
270.058 |
|
- on Counter
Guarantee |
4.683 |
|
- on Letters of
Credit |
-- |
|
To Sales Tax
Authorities |
1.527 |
|
On Guarantee
given on behalf of a Subsidiary Company |
1000.000 |
|
b) Claims
against the company not acknowledged as Debts: |
|
|
i) Import Lease
and Inter-state Lease transactions |
|
|
- Appeals filed
by the company |
-- |
|
ii) Hire
Purchase transactions and termination of Lease transactions |
|
|
- Appeals filed
by the company |
4.607 |
|
iii) Others |
26.633 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 40.90 |
|
|
1 |
Rs. 81.29 |
|
Euro |
1 |
Rs. 55.27 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|