MIRA
INFORM REPORT
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Report Date : |
10.05.2007 |
IDENTIFICATION DETAILS
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Name : |
DAIKAFFIL CHEMICALS INDIA LIMITED |
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Registered Office : |
52 Nariman Bhavan,
Nariman Point, Mumbai – 400 021, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.06.1992 |
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Com. Reg. No.: |
67309 |
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CIN No.: [Company
Identification No.] |
L24114MH1992PLC067309 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD04122G |
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PAN No.: [Permanent
Account No.] |
AAACD0555A |
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Legal Form : |
Public Limited Liability company. The company’s shares are listed on the Stock Exchange. |
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Line of Business : |
Manufacturers of Organic Intermediates and Optical Brightners. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
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Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 200000 |
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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/ Head Office : |
52 Nariman Bhavan,
Nariman Point, Mumbai – 400 021, |
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Tel. No.: |
91-22-202 1368 / 202 5004 |
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Fax No.: |
91-22-202 7839 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No. E/4, M.I.D.C.,
Tarapur, Boisar, Dist. Thane-401506, |
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Tel. No.: |
91-2525-272674 |
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Fax No.: |
91-2525-273660 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Amit J Patel |
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Designation : |
Chairman |
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Name : |
Mr. Sishir R Amin |
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Designation : |
Managing Director |
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Name : |
Mr. Jayant G Patel |
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Designation : |
Director |
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Name : |
Mr. Yoshiaki Tagami |
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Designation : |
Director |
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Name : |
Mr. Sudhir M Patel |
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Designation : |
Director |
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Name : |
Mr. Jagdish J Vasa |
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Designation : |
Director |
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Name : |
Mr. Aditya A Patel |
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Designation : |
Alternate Director to Yoshiaki Tagami |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
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Indian Promoters |
962450 |
18.33 |
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Persons Acting in Concert |
1314999 |
25.05 |
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Non-Promoter Holding |
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Institutional Investors Mutual Funds and UTI |
1500 |
0.03 |
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Banks, Financial Institutions, Insurance Companies |
7900 |
0.15 |
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FIIS |
0.00 |
0.00 |
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Others |
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Private Corporate Bodies |
657601 |
12.52 |
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Indian Public |
2174246 |
41.41 |
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NRIs/ OCBs |
84200 |
1.60 |
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Any other |
47404 |
0.90 |
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Total |
5250300 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Organic Intermediates and Optical Brightners. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Organic Intermediates |
MT |
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900 |
188 |
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Optical Whitening Agents - Powder |
MT |
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300 |
60 |
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Optical Whitening Agents – Liquid |
MT |
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1000 |
817 |
GENERAL INFORMATION
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No. of Employees : |
75 |
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Bankers : |
Karnataka Bank Limited |
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Facilities : |
Secured Loans : (Rs.
In millions)
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Gaurang Merchant & Company Chartered Accountants |
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Associates : |
v Caffil Private Limited v Amichem v Tristar Corporation |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6000000 |
Equity Shares |
Rs.10/- each |
Rs.60.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5250300 |
Equity Shares |
Rs.10/- each |
Rs.52.503
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 |
52.503 |
52.503 |
52.503 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2.483 |
2.483 |
2.483 |
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4] (Accumulated Losses) |
(2.639) |
(5.116) |
(6.774) |
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NETWORTH |
52.347 |
49.870 |
48.212 |
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LOAN FUNDS |
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1] Secured Loans |
6.650 |
9.347 |
11.335 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
6.650 |
9.347 |
11.335 |
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DEFERRED TAX LIABILITIES |
0.870 |
0.000 |
0.000 |
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TOTAL |
59.867 |
59.217 |
59.547 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
30.723 |
32.228 |
35.080 |
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Capital work-in-progress |
1.992 |
2.893 |
1.871 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.579 |
1.793 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
12.432 |
14.243 |
11.039 |
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Sundry Debtors |
24.194 |
21.188 |
16.722 |
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Cash & Bank Balances |
1.638 |
1.030 |
1.236 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
8.548 |
6.219 |
5.812 |
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Total
Current Assets |
46.812 |
42.680 |
34.809 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
18.970 |
18.847 |
14.252 |
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Provisions |
0.690 |
0.350 |
0.100 |
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Total
Current Liabilities |
19.660 |
19.197 |
14.352 |
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Net Current Assets |
27.152 |
23.483 |
20.457 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.034 |
0.346 |
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TOTAL |
59.867 |
59.217 |
59.547 |
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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 |
115.220 |
89.408 |
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Other Income |
1.267 |
3.267 |
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Total Income |
116.487 |
92.675 |
82.199 |
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Profit/(Loss) Before Tax |
4.354 |
3.122 |
2.078 |
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Provision for Taxation |
1.890 |
1.464 |
1.280 |
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Profit/(Loss) After Tax |
2.464 |
1.658 |
0.798 |
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Earnings in Foreign Currency : |
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Export Earnings |
90.139 |
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62.097 |
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Other Earnings |
0.188 |
0.436 |
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Total Earnings |
90.327 |
72.654 |
62.097 |
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Imports : |
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Raw Materials |
37.872 |
29.966 |
24.654 |
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Total Imports |
37.872 |
29.966 |
24.654 |
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Expenditures : |
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Manufacturing Expenses |
10.254 |
8.907 |
7.482 |
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Administrative Expenses |
14.111 |
11.018 |
7.451 |
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Raw Material Consumed |
75.239 |
57.126 |
51.561 |
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Salaries, Wages, Bonus, etc. |
6.511 |
6.055 |
5.129 |
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Interest |
1.110 |
0.997 |
1.408 |
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Depreciation & Amortization |
4.907 |
5.449 |
5.587 |
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Total Expenditure |
112.133 |
89.553 |
78.618 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 (1st
Qtr.) |
30.09.2006 (2nd
Qtr.) |
31.12.2006 (3rd
Qtr.) |
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Sales Turnover |
24.000 |
44.600 |
35.600 |
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Other Income |
1.100 |
0.000 |
0.100 |
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Total Income |
25.100 |
44.600 |
35.700 |
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Total Expenditure |
22.700 |
39.600 |
32.800 |
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Operating Profit |
2.400 |
5.000 |
2.900 |
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Interest |
0.100 |
0.100 |
0.200 |
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Gross Profit |
2.300 |
4.900 |
2.700 |
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Depreciation |
1.000 |
1.000 |
1.000 |
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Tax |
0.000 |
0.000 |
0.200 |
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Reported PAT |
1.300 |
3.900 |
1.500 |
200606 Quarter 1
Notes:
EPS is basic and diluted. 1.The above results have been taken on record by
the Board of Directors at the meeting held on 31.07.2006. 2.Segment reporting
as defined in Accounting Standard 17 is not applicable. 3.The company has
received no complaint from investors during the quarter 01.04.2006 to
30.06.2006 and all grievances have been resolved/ 4.Deferred tax liability, if
any, will be provided at the end of the year.
200609 Quarter 2
Notes:
EPS is Basic & Diluted Status of Investor Complaints for the quarter
ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter Nil Complaints disposed off during the
quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above
Results have been taken on record by the Directors at the Board Meeting held on
October 31, 2006. These Accounts have been subject to Limited Review by the
Statutory Auditors. 2. Segment Reporting as defined in Accounting Standard 17
is not applicable. 3. Deferred Tax Liability, if any, will be provided at the
end of the year.
200612 Quarter 3
Notes
EPS is Basic and Diluted 1. The above Results have been taken on record
by the Directors at the Board Meeting held on January 18, 2007. These Accounts
have been subject to 'Limited Review' by the Statutory Auditors. 2. Segment Reporting
as defined in Accounting Standard 17 is not applicable. 3. The Company has
received 4 complaints from investors during the quarter 1.10.2006 to 31.12.2006
and all Grievances have been resolved. 4. Deferred Tax Liability, if any, will
be provided at the end of the year.
KEY
RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.16 |
0.22 |
0.27 |
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Long Term Debt-Equity Ratio |
0.01 |
0.02 |
0.03 |
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Current Ratio |
1.59 |
1.45 |
1.29 |
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TURNOVER RATIOS |
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Fixed Assets |
1.59 |
1.27 |
1.18 |
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Inventory |
9.09 |
7.35 |
6.76 |
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Debtors |
5.37 |
4.93 |
5.90 |
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Interest Cover Ratio |
3.75 |
3.29 |
2.11 |
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Operating Profit Margin(%) |
8.95 |
10.71 |
11.31 |
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Profit Before Interest And Tax Margin(%) |
4.93 |
4.93 |
4.71 |
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Cash Profit Margin(%) |
6.08 |
7.60 |
7.54 |
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Adjusted Net Profit Margin(%) |
2.05 |
1.82 |
0.94 |
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Return On Capital Employed(%) |
9.93 |
7.34 |
6.24 |
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Return On Net Worth(%) |
4.76 |
3.24 |
1.52 |
STOCK PRICES
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Face Value |
Rs.10.00 |
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High |
Rs.(0.01) |
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Low |
Rs.(0.01) |
LOCAL AGENCY FURTHER INFORMATION
INDUSTRY
The chemical industry which had been on a path of high growth since
liberalisation, slowed down in FY’97. Year-on-year growth rate in Index of Industrial
Production (IIP) for chemical production in FY’96. This slowdown has been
attributed to a number of reasons. The overall slowdown in economy, including
that of the agriculture sector has bad on impact on the chemical industry. The
impact of reforms on the industry has also been severe.
The caustic soda industry, with a size of around Rs.36 billion,
comprises around 5% of the chemical process industry in
Caustic soda is manufactured/sold
in liquid (lye) or solid (flakes) form. It finds usage in diverse applications
such as in the manufacture of paper, alumina, man-made and cotton fibres, soaps/detergents and a host of chemicals.
Chlorine is a co-product and for every tonne of caustic soda manufactured, 0.88
tonnes of chlorine is produced. Chlorine is used in a number of applications
such as in the manufacture of PVC and several other organic/inorganic chemicals.
Soda ash, chemically known as Sodium Carbonate is a versatile inorganic
chemical with a wide variety of applications. It is largely used in the
manufacture of detergents, silicates and several downstream chemicals. The
domestic soda ash industry has been facing the onslaught of imports for quite
some time.
The industry is likely to continue to be a net importer although imports
may be lower in the coming year due to larger capacities in the domestic
market. The competitiveness of the industry will be severely tested as import
duties on the furnished products come down further and foreign major seek to
establish a toehold in the country.
BUSINESS
Subject is engaged in manufacturing of Organic Intermediates and Optical
Brightners.
PERFORMANCE:
Though the Company achieved higher sales of about 29% as compared to
last year, the operations continued to be hit by a meteoric rise in key raw
material prices plus utilities like power and water, lower export incentives
and weak dollar. Gross PBID improved from Rs. 9.600 Millions to Rs. 10.400
Millions and PBT recorded a modest rise from Rs. 3.100 Millions to Rs. 4.300
Millions.
The Company maintained its presence in the International market with
several global majors as its valued customers. The Company continues to
consolidate its position by entering into long-term contracts with them. In the
home markets, Company had to confront severe competition from multinationals,
besides cascading impact of lower import tariffs.
OUTLOOK:
With the current trend sparked by globalization,
The Directors are pleased to inform you that as referred in the last
Annual Report, the Company is still in the process of exploring all
possibilities to enter into a tie-up with a strategic Partner and the talks are
in progress with some of its reputed customers and have received some positive
feedback from them to have a joint venture with their Company.
The current order position for exports is to the tune of Rs. 90.000
millions and are hopeful to achieve a growth of approximately 10% in the
turnover as compared to the previous year.
BUSINESS OF THE COMPANY
Business Segment
The company is primarily engaged in the manufacturing and selling of
Optical Brightening Agents (DBAs) consumed in Textiles Pulp & Paper and
Detergent Industries besides Azoic coupling components - Naphthols used in
pigment for Paint and Printing Industries. The products are mainly for export,
though competition from multinational continue in the domestic markets.
SWOT Analysis
The Company continues to remain an active player based on the quality
certifications from British Standard Institute.
Some of the leading producers in ED are quitting the business of
Fluorescent Brightners, thus giving wide opportunities for exports. The
management reviews periodically the prescribed policies in respect to environment,
occupational health and safety.
Quality Policy
Constant vigilance is maintained at every stage of process from input of
raw materials and utilities till the finished
goods are ready, packed and delivered. Quality has remained as Company's
motto
Research & Development
The R & D and technology capabilities of the Company will play a
primary role in positioning the company as a
"solution provider" and not only "product supplier"
Joint Venture
The Company is exploring all possibilities for a tie-up with a strategic
Partner for expanding OBA business plus adding new lines of Auxiliaries,
Speciality chemicals for fast developing Textiles and papers business
domestically.
The talks are in progress with some of its reputed clients and are
hopeful to enter into a memorandum of understanding with any one of them during
the year.
Financial performances analysis:
The Company's net sales and income from operations in the year 2005-06
was Rs 116.429 Millions against Rs. 91.452 Millions in the previous year, an
increase of 27.31%. The export sales registered an increase of 24.01% to reach
Rs. 92.938 Millions in the year. The profit before taxation was Rs. 4.354
Millions.
The improvement in turnover and net profit during the year under review
reflects, the continuous efforts of the Management and the employees towards
cost reduction, improvement in process technology and efficiency, improvement
in productivity and development of new products.
The company’s fixed assets of important value includes Leasehold Land,
Factory Building, Flats, Plant & Machinery, Electrical Installations,
Laboratory Equipments, Office Equipments, Furniture & Fixtures, Computer
& Fax Machine and Vehicles.
The company employs around 75 persons in different setups.
Subject came into the public
issue in May 95 for expansion. Promoted by J G Patel -- ex-joint managing
director of Indian Dyestuff Industries (IDI) -- and others, Subject, is
presently involved in the manufacture of DNS, is now expanding its DNS capacity
from 120 tpa to 480 tpa, and integrating forward to manufacture DASDA and
optical brightening agents (OBA). DCI has entered into an technical cum
financial support from Daika (
Presently DCIL is managed under the leadership of Mr. Jayant G Patel as its
Chariman and Mr. Amit J Patel as its Managing Director.
Di-nitro stilbene (DNS) is an intermediate used to manufacture di-amino stilbene
di-sulphonic acid (DASDA), which is the raw material for OBA. OBAs find
application in the paper and cotton textile industries. A part of the DNS
produced will be captively consumed to produce DASDA, while the balance will be
exported to Daika. Similarly, a part of the DASDA produced, will be used to
manufacture OBA. The entire quantity of OBA produced along with the remaining
DASADA will be exported to Daika (
During 1997 company has started production of OBA with an installed capacity of
250000 Kgs.
Website Details :
Subject is a chemical manufacturing Company established in
1992. They have come a long way since and established a name in the chemical
industry. Other than the production of chemicals, which after processing
becomes a part of everyone's day to day life, Subject entered the consumer
arena in 1995 by converting into a Public Limited Company. Today, it has a
subscribed capital of Rs. 52 Million having more than 4000 share holders,
including Foreign Collaborators, Financial Institutions, Body Corporates,
Non - Resident Indians and Indian public.
Subject has a
production facility in Tarapur. The unit was established in 1992 and from a
small turnover of about 10 millions that year, the unit has achieved higher
sales in the range of Rs. 100 millions, with reasonable profits and reserves in
the last ten years.
In the year 1993, they at Subject came
across the Japanese Technology. They realised the benefits of using it which resulted
in low input costs as well as manual labour in the area of production and
automation respectively. Hence, they decided to venture into collaboration with
them, on terms of transparency, trust and full co-operation from both sides.
They are staunch believers of hard work and morality, which
is why they have been able to incorporate goodwill amongst all their audience,
be it clients, consumers, suppliers, share holders, bankers or their very own
employees. They believe that "All successful business stands on foundation
of morality, and the price of greatness is responsibility."
Their quality and consistency as a reliable source of supply
is the key differentiator between them and the others, hence they are fully
conscious that at any costs they have to maintain their credibility. It is only
because of such reasons that their clients value their work to the extent that
they export their products under their names and trademarks claiming full
responsibility.
Their clientele includes established names in the industry
like Clariant, KIWA, ERCA spa, DAIKA (
With an established clientele and a production setup of
international standards, Subject applied for the ISO 9001:2000 Certification,
which has been approved thus adding a hallmark to the Subject team's hard work
and success.
Factory
Subject has
one manufacturing plant, located on the outskirts of Mumbai, in Tarapur near
Boisar.
The main objective of the unit
is to produce quality Intermediates, mainly for exports with the technical help
from the overseas collaborators, so as to create cost advantages for all their
customers, establish trust and confidence as a reliable sourcing unit.
Subject's state
of the art plant at Tarapur has been setup with Japanese Collaboration having forward
integration production facilities from PNTSA, DNS, DAS, DHS to various OBA's
under one roof.
Subject
also has a comprehensive technology - cum - marketing tie-up in
the field of "Azoic Coupling Components" with the Japanese
Collaborators. The plant is located at E-4, M.I.D.C., Boisar, in Thane district
of Maharashtra, having present production facilities approved by the Government
of India vide their acknowledgement No. 782 / SAI / IMO / 98 dated 22/04/1998.
As a composite unit, it has backward integration facilities
to produce 60MT per month of DNS and 50MT per month of DAS with sufficient
spare capacity for sale, after captive consumption. The present installed
capacity for Pigment Intermediates and Azoic Coupling Components is 500MT per
annum and have on hand expansion plans to double it.
The factory has various plants
consisting of Sulfonations, Air-Oxidation Tanks, Reduction Vessels and 4
Cyanuration Reactors of SS 316 of 10,000 ltrs capacity along with balancing
equipment's such as Filter Presses, Dryers, Blenders, Pulverizers, Chilling
Plant, Boilers, Glasslined Reactors and Condensers.
The Laboratory and the Testing facilities cover Spectro
Photo Meter / HPLC / and other relevant instruments required for stringent
quality testing.
Collaboration
The Tarapur plant, near Mumbai, has been setup with
the Japanese Collaboration to include modern setup of International Standards.
It has the forward integration facilities from PNTSA, DNS, DAS, DHS to various
OBA's under one roof.
The Japanese technology is unique in real sense, that the
input costs are minimum, particularly the processes involving Air-Oxidation,
Amidation, De-hydration, Condensation etc., where cost advantage is remarkable.
Automation is another field where a lot of manual labour can be spared.
Besides, in all the range of production lines, the Japanese
have not only provided technology free of any costs, but had agreed to
buy-back certain quantities of their production for their valued clients, since
the quality of the products were directly under their supervision and control.
This way both the companies have been able to establish their names in the
International Markets.
Their fundamental principle is to join hands on honourable
terms with any of the overseas partners / producers as a "Joint Venture
Unit" that can be managed in total transparency and trust with full
co-operation from both the sides.
Products
The main products are various types of Stilbene Derivatives,
Optical Brighteners for Textiles / Paper / Detergent Industries, Naphthol
Grounders for Pigments and Intermediates for Pigment Red 170.
Subject is a
large producer of OPTICAL BRIGHTENING AGENTS - OBA's, broadly used in the
Cellulosic Fibers, Pulp and Paper, Detergent and Soap. The present range
consists of FB 24, 71, 86, 90, 113, 134, 220 and 357, chemically known by C.I.
generic names. These are generally similar to European Brands, such as UVITEX
of CIBA, BLANKOPHOR of BAYER and LEUCOPHOR of CLARIANT.
Subject has
setup a modern plant at Tarapur near Mumbai with Japanese Collaboration having
forward integration production facilities from PNTSA, DNS, DAS, DHS to various
OBA's under one roof. The present production including Intermediates is
exported to
Under the strict supervision
provided by the foreign collaborators, the Company has installed capacities for
Crude, Concentrated Highly Conc. and Liquid OBA's for Paper / Textiles and for
Detergents / Soaps, CBUS type.
Subject now offers an important Pigment
for PAINT AND PRINTING INK INDUSTRY under their product name - "DIGAMENT
RED 170" C.I. No. Pigment Red F5RK - Pigment Red 170 - C.I. No. 12475 in
order to cater to the growing demand of the Indian Markets.
At Subject
they are not in business only to manufacture and supply chemicals, but maintain
a long lasting relationship with their prestigious customers such as CLARIANT,
ERCA spa, KIWA and so on.
"DIKAPHOR" is the registered trademark of
the OBA's manufactured by the Company
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.41.34 |
|
|
1 |
Rs.81.81 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|