MIRA
INFORM REPORT
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Report Date : |
04.05.2007 |
IDENTIFICATION DETAILS
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Name : |
UNITECH LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.07.1979 |
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Com. Reg. No.: |
9720 |
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CIN No.: [Company
Identification No.] |
L74899DL1979PLC009720 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELU01155A / DELU02234B / DELU02655C |
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PAN No.: [Permanent
Account No.] |
AAACU1480H |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are listed on Stock
Exchange. |
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Line of Business : |
Subject is engaged in civil engineering construction and
housing development projects. |
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 8900000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-124-4082020 / 4086677 /
2383536 / 4083355 |
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E-Mail : |
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Website : |
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Branch Office : |
Block ‘C’, 4th floor, |
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Tel. No.: |
91-33 22892000, 23242000 |
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Fax No.: |
91-33 23242009 |
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E-Mail : |
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Branch Office : |
6 Community Centre, Saket, |
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Tel. No.: |
91-11-41664040 / 26857330 /
26857331 / 26965169 |
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Fax No.: |
91-11-26857338 |
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E-Mail : |
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Branch Office : |
P-7, Sector - 18, Noida –
201301, |
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Tel. No.: |
91-120-2513609/3780/3776 |
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Fax No.: |
91-120-4348906 |
DIRECTORS
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Name : |
Mr. Ramesh Chandra |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. A |
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Designation : |
Whole-time Director |
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Name : |
Mr. Minoti Bahri |
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Designation : |
Director |
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Name : |
Mr. Anil Harish |
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Designation : |
Director |
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Name : |
Mr. P K Mohanty |
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Designation : |
Director |
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Name : |
Mr. Sanjay Bahadur |
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Designation : |
Director |
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Name : |
Mr. G R Ambwani |
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Designation : |
Director |
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Name : |
Mr. Tarun V Kotak |
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Designation : |
Company Secretary |
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Name : |
Mr. Sanjay Chandra |
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Designation : |
Whole-time Director |
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Name : |
Mr. Ajay Chandra |
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Designation : |
Whole-time Director |
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Name : |
Mr. Ravinder Singhania |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in civil engineering construction and
housing development projects. |
GENERAL INFORMATION
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No. of Employees : |
1133 |
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Goel Garg & Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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210000000 |
Equity Shares |
Rs. 10/- each |
Rs. 2100.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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149862487 |
Equity Shares |
Rs. 10/- each |
Rs. 1498.625
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
124.900 |
124.900 |
124.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2120.500 |
1614.200 |
1382.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2245.400 |
1739.100 |
1506.900 |
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LOAN FUNDS |
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1] Secured Loans |
5819.700 |
2313.100 |
603.200 |
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2] Unsecured Loans |
1067.800 |
945.700 |
713.600 |
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TOTAL BORROWING |
6887.500 |
3258.800 |
1316.800 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
9132.900 |
4997.900 |
2823.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
547.300 |
253.500 |
177.900 |
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Capital work-in-progress |
0.000 |
133.100 |
0.000 |
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INVESTMENT |
2823.900 |
1665.700 |
847.800 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
18569.200
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11221.300 |
6487.500 |
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Sundry Debtors |
765.400
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571.400 |
619.200 |
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Cash & Bank Balances |
1606.300
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1948.900 |
839.600 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
8655.800
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3107.600 |
1671.100 |
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Total
Current Assets |
29596.700
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16849.200 |
9617.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
23109.500
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13626.800 |
7701.500 |
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Provisions |
725.500
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276.800 |
117.900 |
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Total
Current Liabilities |
23835.000
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13903.600 |
7819.400 |
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Net Current Assets |
5761.700
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2945.600 |
1798.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
9132.900 |
4997.900 |
2823.700 |
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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 |
6531.300
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5093.300
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3739.500 |
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Other Income |
216.200
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178.500
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81.000
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Stock Adjustments |
29.600
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26.400
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72.800
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Total Income |
6777.100 |
5298.200 |
3893.300 |
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Profit/(Loss) Before Tax |
1081.200 |
433.800 |
205.300 |
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Provision for Taxation |
384.800 |
134.600 |
64.600 |
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Profit/(Loss) After Tax |
696.400 |
299.200 |
140.700 |
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Expenditures : |
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Raw
Materials |
531.400
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521.300
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229.900
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Other
Manufacturing Expenses |
4233.500
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3740.300
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3126.500
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Employee
Cost |
294.400
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165.000
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97.800
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Selling
and Administration Expenses |
162.500
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128.700
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67.700
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Miscellaneous
Expenses |
86.000
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68.500
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53.900
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Interest
& Financial Charges |
371.300
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219.200
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95.300
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Depreciation
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31.000
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21.400
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16.900
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Total Expenditure |
5710.100 |
4864.400 |
3688.000 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
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Sales
Turnover |
2677.600 |
3847.600 |
10027.400 |
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Other
Income |
384.500 |
79.300 |
138.500 |
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Total
Income |
3062.100 |
3926.900 |
10165.900 |
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Total
Expenditure |
1917.600 |
2533.600 |
3077.300 |
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Operating
Profit |
1144.500 |
1393.300 |
7088.600 |
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Interest |
158.500 |
189.900 |
494.900 |
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Gross
Profit |
986.000 |
1203.400 |
6593.700 |
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Depreciation |
09.500 |
10.500 |
13.400 |
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Tax |
236.500 |
192.000 |
2056.500 |
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Reported
PAT |
740.000 |
1000.900 |
4523.800 |
Notes:
200606 Quarter 1 –
1. The Board of Directors has taken on record the
above-mentioned financial results at its meeting held on 29th July, 2006. 2.
The Authorised Share Capital of the Company has been increased from Rs. 350
Millions to Rs. 2100 Millions and the Equity Shares of the Company have been
sub-divided from one share of Rs. 10/- to five shares of Rs. 2/- each. Further,
the Paid-up Equity Share Capital of the Company has been increased from Rs.
12,48,75,000/- to Rs. 1,62,33,75,000/- by issue of Bonus Shares of Rs. 1,49,85,00,000/-.
3..Provision for deferred tax shall be accounted for at the end of the year. 4.
Figures in respect of financial results for the previous year's quarter have
been re-grouped and re-arranged wherever considered necessary. 5. The
above-mentioned quarterly results are subject to Limited Review by the Auditors
of the Company. 6. During the quarter ended 30th June, 2006, 172 complaints
were received from investors and all were resolved. No complaints were pending
either at the beginning or at the end of the quarter.
200609 Quarter 2 –
1 The above-mentioned unaudited financial results, as
reviewed by the Audit Committee were approved and taken on record by the Board
of Directors at its meeting held on 31st October, 2006. 2 The equity shares of
face value of Rs.10/-each has been sub-divided into 5 equity shares of the face
value of Rs.2/-w.e.f. 30th June, 2006. Further, the Paid-up Equity Share
Capital of the Company has been increased from Rs.12, 48, 75, 000/- to
Rs.162,33,75,000/- by issue of Bonus Shares of Rs.149,85,00,000/-. Hence the
figures of EPS and No. shares are not comparable with the corresponding
previous period. 3 Effective from 1 st April 2006, the Institute of Chartered
Accountants of India has issued revised Accounting Standard(AS-15) on Employee
Benefits Necessary provisions in respect of additional liability, if any, under
the said Standard will be made at the year end. 4 Provision for Deferred Tax
shall be accounted for at the end of the year. 5 Figures in respect of
financial results for the previous period have been re-grouped &
re-arranged wherever considered necessary. 6 The above-mentioned quarterly
results are subject to Limited Review by the Auditors of the Company. 7. No
Complaint from investors was pending at the beginning of the quarter ended 30th
September, 2006. During the quarter, 164 complaints were received from
Investors, out of which 159 were resolved and 5 complaints were pending at the
end of the quarter. Key Highlights of the Quarter Jul - Sept 06 · For the 1 st
time, Unitech shared its development plans with all its stakeholders. · Unitech
continued to successfully launch high-quality residential projects in various
parts of
200612 Quarter 3 –
EPS is Basic & Diluted 1. The above mentioned financial
results were reviewed by the Audit Committee and were taken on record by the
Board of Directors at its meeting held on 31st January 2007. 2. The equity
shares of face value of Rs.10/- each has been sub-divided into 5 equity shares
of the face value of Rs.2/- each w.e.f. Further, the paid-up equity share
capital of the company has been increased from Rs.12,48,75,000/- to
Rs.1,62,33,75,000/- by issue of bonus shares of Rs.1,49,85,00,000/-, hence the
figures of EPS and No. of shares are not comparable with the corresponding
previous period. 3. Effective from 1st April 2006 the Institute of Chartered
Accountants of India has issued revised Accounting Standard (AS-15) on
'Employee Benefits'. Necessary provision in respect of additional liability if
any, under the said standard will be made at the year end. 4. The sale proceeds
of investments held in companies developing Real Estate Projects is treated as
real estate revenue; net of cost. 5. Provision for deferred tax shall be
accounted for at the end of the year. 6. Figures in respect of financial
results for the previous period have been re-grouped and re-arranged wherever
considered necessary. 7. The above mentioned quarterly results are subject to
limited review by the auditors of the company. 8. For the quarter ended 31st
December 2006, 5 complaints were pending at the beginning of the quarter and
102 complaints were received from the investors during the quarter. Out of
these, 106 complaints were resolved and 1 complaint was pending at the end of
the quarter.
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity
Ratio |
2.55 |
1.41 |
0.91 |
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Long
Term Debt-Equity Ratio |
1.59 |
1.21 |
0.66 |
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Current
Ratio |
1.12 |
1.18 |
1.21 |
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TURNOVER
RATIOS |
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Fixed
Assets |
9.75 |
11.05 |
9.43 |
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Inventory |
0.44 |
0.58 |
0.62 |
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Debtors |
9.77 |
8.56 |
6.55 |
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Interest
Cover Ratio |
3.91 |
2.98 |
3.15 |
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Operating
Profit Margin(%) |
22.71 |
13.24 |
8.49 |
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Profit
Before Interest And Tax Margin(%) |
22.24 |
12.82 |
8.04 |
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Cash
Profit Margin(%) |
11.14 |
6.29 |
4.21 |
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Adjusted
Net Profit Margin(%) |
10.66 |
5.87 |
3.76 |
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Return
On Capital Employed(%) |
20.56 |
16.70 |
10.87 |
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Return
On Net Worth(%) |
34.96 |
18.44 |
9.74 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.426.80/- |
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Low |
Rs.420.10/- |
LOCAL AGENCY FURTHER INFORMATION
History
Engaged in civil engineering construction and housing
development projects, Unitech has undertaken the construction of thermal power,
steel and petrochemical plants and public utility buildings for a number of reputed
public and private sector companies.
It went public in Sep.'92 to part-finance two housing projects. Behind its
present solid status is its strategic planning which deserves mention. The
decision to enter Libya during the oil boom in the mid-seventies and strengthen
its base in a country where competition was less than other Arab nations,
helped it forge ahead, untroubled by the Iran-Iraq war. Moreover, a diversified
project-mix, which includes projects in a wide variety of industries, helps
reduce risks arising from dependence on a few industries. The decision to enter
into real estate and housing development in 1986 helped it sustain its growth,
in spite of drastic cuts in government expenditure in the early nineties.
It has signed a MoU with a
During 1995-96, the company launched its prestigious
mini-township-SouthCity-II-on
Unitech maintained steady progress at different project sites including the 220
mtr chimney at Kothagudam, AP and 190 mtr chimney at Kutch, Gujarat,
hydrocracker lab at Faridabad, corporate office and exchange building of MTNL at
New Delhi and spinning unit at Baroda.
During 1995-96, Hyundai Unitech Electrical Transmission
became a subsidiary of Unitech. The company signed a joint venture agreement
with Haryana Urban Development Authority (HUDA) and First Capital Property Ventures
Pte Limited,
It is implementing large scale real estate and housing development projects on
the Delhi-Gurgoan road and at
The company plans to set up amusement parks and urban entertainment centres and
also plans to commence a B.Sc.(Honours) Degree Course in Information Technology
duly validated by Oxford Brookes University, UK in 2001.
The total income of the Company for the year was Rs.6747.5
Millions as against Rs.5271.800 Millions in the previous year. The Company
earned a Profit after tax of Rs.696.500 Millions as against Rs. 299.100
Millions in the previous year registering a growth of almost 133%.
The total income for the year was Rs. 9545.000 Millions as against Rs. 6649.000
in the previous year and the profit after tax of Rs. 87.65 against Rs. 348.000
Millions in the previous year registering a growth of over 150%.
Real Estate Projects:
Real Estate Division of the Company has been growing at a rapid pace
during the last year. We have many ongoing projects in Gurgaon, Noida, Greater
Noida,
Residential Projects
1. Ongoing Projects:
* Unitech Cascades
Location: Greater Noida Area: 9 acres No. of apartments: 350
* Fresco, Nirvana Country Location: Gurgaon Area: 16.9 acres No. of apartments:
864
* Gardens at Uniworld City Location: Kolkata Area: 13 acres No. of apartments:
404
* Horizons at Uniworld City Location: Kolkata Area: 12 acres No. of apartments:
366
* Heights at Uniworld City Location: Kolkata Area: 10 acres No. of apartments:
682
* The Close, Nirvana Country Location: Gurgaon Area: 40 acres (Close North - 20
acres and Close South - 20 acres) No. of apartments: 1381
Possessions:
In the last financial year, we have started handing over units to our customers
in Uniworld City, and As per, Greens and Birch Court in Nirvana Country.
Upcoming Projects:
* Unitech Habitat, Greater Noida (a 23.7 acres Group Housing project with 902
apts)
* Escape, Nirvana Country, Gurgaon (a 10.1 acres Group Housing project with 400
apts) * Unitech Karma Lakelands, a golf community, consisting of 300 odd villas
spread across a 9 hole golf course
* A Group Housing project in Gurgaon (10.5 acres, with around 280 apts)
* A Group Housing project in Greater Noida (8.75 Acres, with around 300
apts)
* Uniworld Resorts (230 acres)
* Uniworld Gardens-II - Gurgaon (11.1 acres - Group Housing) * Downtown,
Uniworld City, Kolkata, with around 277 apts * Air, Uniworld City, Kolkata,
with around 136 apts
* Cascades, Uniworld City, Kolkata, with around 490 apts
* Oasis at Chennai, a 45 acres residential project, with 1500 apts
* Oasis, a residential township project at Alwal, Hyderabad, spread across 120
acres, with 2300 apts and villas
* A 10 acres residential project in Banjara Hills, Hyderabad, spread across 10 acres
* The Cove, a 250 acres residential township in Kochi
* A 12 acres residential project in Bangalore
Commercial Projects:
Ongoing Projects
* Unitech Cyber Park, Gurgaon
Possessions:
a. The below companies have shifted Unitech Cyber Park, in the last year
* Hewitt International Services Private Limited
* Bharti Televentures
* Fidelity Business Services, India
* Sun Life India
* Evalueserve.com Private Limited
* Vertex Customer Service
* Yatra Online
* Brocade
b. Ciena Telecom have shifted to our commercial building at Sector 32,
Gurgaon
c. Shri Ram Fibres have started operation in Unitech Crest, at Greenwood City,
Gurgaon, last year
d. HCL Technologies have started operations in Info Centre, Gurgaon, last
year
Upcoming Projects:
* Infospace, Noida (20 acres and 1.3 mill sq ft)
* Corporate Office, Saket (1.33 acres and 0.6 mill sq ft)
* Nirvana Courtyard, Gurgaon (2.4 acres and 0.18 mill sq ft)
* Infospace, Kolkata (50 acres)
* Infospace, Gurgaon (28 acres and 2.5 mill sq ft)
* A 4 acres project in Bangalore
Hospitality: We are partnering Marriott Hospitality in 4 projects so far, to
operate hotels for the company: 1. Marriott Courtyard, Gurgaon, with 199
rooms
Marriott Courtyard, Noida, with 210 rooms
Marriott Courtyard, Kolkata, with 250 rooms
Marriott Executive Apartments, Gurgaon, with 173 rooms
Construction Project
Highway Projects:
The Company has successfully completed one World Bank funded
State Highway Project in Uttar Pradesh within the scheduled time. The two
highway projects - one in the state of Madhya Pradesh and one in Karnataka
(peripheral expressway around
The Company has also been awarded two World Bank funded Road Projects in the
state of Uttar Pradesh and another State highway ADB funded project in the
state of Madhya Pradesh.
Industrial Projects:
The Company has successfully completed and handed over the National Board of
Examination (NBE) building, Chimney project at Parichha, Thermal Power Station
for Reliance Energy Limited and Structural work for Jindal Stainless Limited at
Hissar.
Progress of work on Employees Provident Fund Organization (EPFO) Building is
progressing satisfactorily and is expected to be completed as per schedule. All
Chimney projects located at Bhatinda for Punjab State Electricity Board (PSEB),
Bhilai for Bhilai Electricity Supply Company Private Limited, Dist-Durg,
Chattisgarh and at Mejia for Mejia Thermal Power Station, West Bengal are
proceeding as per schedule and shall be handed over well in time. '
The Company has secured a prestigious 'IT Park' Building project from Delhi
Metro. The Company has also secured 275 Meter high chimney project at
Yamunanagar and Civil Work for Water System at Yamunanagar. All these three
projects are progressing as per schedule.
Overseas Projects:
The Company has successfully completed
The company has secured a 66 KV Electricity Transmission line project from
Siemens on a Turnkey basis.
Joint Ventures:
Amusement Parks:
International Recreation Parks Private Limited, a 50:50 joint venture between
Unitech Investments Limited and International Amusement Limited, is setting up
a project comprising of a themed amusement park, shopping malls, food courts,
multiplexes etc. in an area of more than 145 acres of land allotted at Sector
38A, Noida by the Noida Authority. It is the first themed amusement park of the
country and will soon become a unique and unparallel destination for amusement
and entertainment in
The Park would feature world class rides and has been designed by Forrec, world
renowned theme park designers from
The year 2005-2006 was a year of considerable development for the project.
Phase I of the Park is at its completion stage and specifically for the 'Teen
Zone' for which work is in an advanced stage. 23rd August, 2005 saw the launch
of the first ride in the Noida park- Mega Disco in the Teen Zone. There are a
total of 9 rides in phase 1, out of which 7 queue structures are in place on
site. The zone is expected to be completed and operational by October-November,
2006. Turner International and IRPPL have tied up to use Turner Branding
exclusively around the Children Zone. The Children Zone has been renamed
Townsville, the area has been increased and redesigned to hold Cartoon Network
characters and branding.
Unitech Amusement Parks Limited (UAPL), a 50:50 joint venture between Unitech
Limited and International Amusement Limited is setting up a project comprising
of a shopping mall, amusement park and a waterpark in a area of more than 62
acres of land allotted to the Company at Sector -10 in Rohini. The Park has
been designed by Forrec, world renowned theme park designers from
Turner International and UAPL have tied up to use Turner 'POGO' Branding
exclusively around the Children Zone in the
Industry Structure and Developments:
For a third year in succession, the Indian Economy has continued its rapid
growth during the fiscal year 2005-2006. With a GDP of more than 8%,
Opportunities and Threats:
Pragmatic and visionary policies adopted by the Government have provided
tremendous opportunity for real estate Companies to encash. The Company is all
set to avail such opportunities and take a giant leap forward in the path of
progress. The Company has firmly set its sight on the future. Its road to
future success is paved with glorious upcoming projects.
Apart from normal business risks, the Company is facing stiff competition from
its old competitors as well as new entrants in the same line of business.
However, due to long experience, pragmatic and prudent policies and induction
of young and dynamic visionaries with expertise coupled with infusion of
high-tech approach, Unitech continues to be the pioneer and has emerged as a
leader leaving all its competitors far behind.
Segment-wise performance:
Though the Company has diversified in various areas; through its various
subsidiaries, in its main stream it operates through three divisions viz,. Real
Estate Development, Construction and Consultancy. The growth in each division
was indeed more than satisfactory. Real Estate Division registered a growth of
more than 100% in terms of Profit before Tax. The Construction Division has
initiated steps to improve its engineering designs and construction methods
benchmarked to global best practices. The Consultancy Division strived to
provide best services to its customers.
Outlook:
Although the real estate business remains the mainstay of the group, it intends
to diversify more aggressively into other related areas like hospitality and
entertainment. I he group is looking at an annual growth of over 30 per cent,
led primarily by the new businesses.
Financial performance with respect to operational
performance:
The Company's performance in terms of financial results during 2005-2006 was
outstanding. The year has been the best year in the Company's history with the
turnover of the Company touching Rs. 6530 Millions and Profit after tax
touching Rs. 700 Millions. Continuous increase in the value of the shares bears
testimony t3 this grand financial success of the Company. An enviable track
record of un-interrupted profit booking and dividend payment for the last 20
years inspires us to strive to excell and surpass previous performances year
after year. The details of the profits and dividends for the last three years
are given elsewhere in this Annual Report.
In terms of operational performance, be it commercial and residential
complexes, technology parks, amusement parks, hotel management and allied
technical services or transmission lines, the Company has carved a mark of
excellence in all these fields.
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.55.47 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
59 |
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 |
|