MIRA
INFORM REPORT
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Report Date : |
10.05.2007 |
IDENTIFICATION DETAILS
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Name : |
WARTSILA INDIA LIMITED |
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Registered Office : |
No: 76, Free Press House, 7th floor, Nariman Point,
Mumbai:400021, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
25.04.1986 |
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Com. Reg. No.: |
062170 |
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CIN No.: [Company
Identification No.] |
L9999MH1986PLC062170 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMW02506A |
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PAN No.: [Permanent
Account No.] |
AAACW0345D |
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Legal Form : |
Public limited liability company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of power Point Equipments, Power Plants and Turnkey
Installation, Generator |
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 9100000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established
and reputed company having fine track.
The company is a subsidiary of Available information indicates high
financial responsibility of the company.
Financial position is good.
Payments are usually correct and as per commitments. The company can be considered
good for normal business dealings at usual trade terms and conditions. It can regarded as a promising business partner in a long-run. |
LOCATIONS
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Registered Office : |
No: 76, Free Press House, 7th floor, Nariman Point,
Mumbai:400021, |
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Tel. No.: |
91-22-22875995, 22815601, 22840427 |
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Mobile No.: |
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Fax No.: |
91-22-22026614, 22875572, 22840427 |
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E-Mail : |
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Website : |
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Other Location: |
Navi Delhi, Chennai, |
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Corporate Office : |
48, Neco Chambers, Sector 11 CBD Belapur, Navi Mumbai 400 614 |
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Tel. No.: |
91-22-2757 5361 / 71 |
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Fax No.: |
91-22-2757 5176 / 77 / 78 |
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Factory 1 : |
Vishram Panchpor, Opp. Govt. Rest House, |
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Tel. No.: |
91-2192-264389 / 264390 |
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Fax No.: |
91-2192-263314 |
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EOU: |
Opp. Govt. Rest House, |
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Tel. No.: |
91-2192-262895 |
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Fax No.: |
91-2192-263314 |
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DIRECTORS
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Name : |
Mr. Subodh Bhargava |
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Designation : |
Chairman cum Directors |
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Name : |
Mr. Bankmali Agarwala |
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Designation : |
Managing Director |
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Name : |
Mr. Pradip Shah |
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Designation : |
Director |
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Name : |
Mr. Pekka Ahiqvish |
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Designation : |
Director |
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Name : |
Mr. Christoph Vitzthum |
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Designation : |
Director |
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Name : |
Mr. Jaakko Eskola |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Manek Kalyaniwala |
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Designation : |
Head -Finance Secretarial |
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Name : |
Mr. Vishram Panchpor |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters'
holding |
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Foreign Promoters |
10,793,401 |
89.69 |
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Sub Total: |
10,793,401 |
89.69 |
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Non-Promoters' holding Institutional Investors |
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Mutual Funds & UTI |
500 |
0.00 |
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Banks, FIs, Insurance Companies |
732,417 |
6.09 |
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Flls |
1,000 |
0.01 |
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Sub Totla: |
733,917 |
6.10 |
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Others |
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Private Corporate Bodies |
41,430 |
0.34 |
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Indian Public |
444,339 |
3.69 |
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NRIs/OCBs |
17,751 |
0.15 |
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Trusts |
45 |
0.00 |
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Transit Demat |
3,117 |
0.03 |
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Sub-Total: |
506,682 |
4.21 |
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Grand Total: |
12,034,000 |
100.00 |
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Wartsila Corporation |
7,156,101 |
59.46 |
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Wartsila Technology Oy Ab |
3,637,300 |
30.23 |
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Life Insurance Corporation of |
507,156 |
4.21 |
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The Oriental Insurance Company Limited |
225,061 |
1.87 |
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Grand Total: |
11,525,618 |
95.77 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of power Point Equipments, Power Plants and Turnkey
Installation, Generator |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
1001 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S. B. Billimoria & Company Chartered Accountants |
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Holding Company : |
Wartsila Corporation, |
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Associates/Subsidiaries : |
Ciserv Limited, Ciserv Limited, Deep Sea Seals Ltd., Japan Marine Technologies Ltd., Ogessa SA, Wartsila Arab Mediterranean Power Ltd., Wartsila Wartsila Brasil Ltda. Wartsila China Ltd., Wartsila Development and Financial Services, Wartsila Denmark AS, Wartsila Deutschland Wartsila Enpa A. S. Wartsila Wartsila France SA, France Wartsila Wartsila Wartsila Gulf FZE, Wartsila Indonesia Ltd., Wartsila Wartsila Japan Ltd., Wartsila Korea Limited, Wartsiia Lips Defence SA, France Wartsila LLC, United Arab Emirates Wartsila Lanka (Private) Limited, Wartsila North America Inc., Wartsila Norway AS, Wartsila Operations and Maintenance Ltd. Wartsila Philippines Inc., Wartsila Wartsila Power Contracting Company Ltd., Wartsila Wartsila Propulsion Wartsila Saudi Arabia Limited, Wartsila Singapore Pte Ltd., Wartsila South Wartsila Wartsila Switzerland Ltd., Wartsila Taiwan Ltd., Wartsila UK Ltd., |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12034000 |
Equity Shares |
Rs. 10/-
each |
Rs.120.340
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
120.340 |
120.340 |
120.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1992.337 |
1857.697 |
1612.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2112.677 |
1978.037 |
1732.400 |
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LOAN FUNDS |
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1] Secured Loans |
170.816 |
203.839 |
236.200 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
170.816 |
203.839 |
236.200 |
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DEFERRED TAX LIABILITIES |
16.358 |
31.000 |
0.000 |
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TOTAL |
2299.849 |
2212.876 |
1968.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
480.125 |
476.567 |
500.200 |
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Capital work-in-progress |
10.473 |
45.506 |
2.100 |
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INVESTMENT |
1000.113 |
926.729 |
913.300 |
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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 |
265.824
|
268.844 |
319.100 |
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Sundry Debtors |
761.733
|
680.669 |
588.800 |
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Cash & Bank Balances |
69.603
|
101.205 |
72.300 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
1179.946
|
938.098 |
697.000 |
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Total
Current Assets |
2277.106
|
1988.816 |
1677.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
642.610
|
534.821 |
592.200 |
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Provisions |
825.358
|
689.921 |
532.000 |
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Total
Current Liabilities |
1467.968
|
1224.742 |
1124.200 |
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Net Current Assets |
809.138
|
764.074 |
553.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2299.849 |
2212.876 |
1968.600 |
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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 |
2710.607 |
2854.002 |
2485.700 |
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Other Income |
43.659 |
55.303 |
354.300 |
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Stock Adjustment |
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|
19.600 |
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Total Income |
2754.266 |
2909.305 |
2859.600 |
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Profit/(Loss) Before Tax |
272.987 |
407.655 |
401.100 |
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Provision for Taxation |
(94.529) |
(133.970) |
141.500 |
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Profit/(Loss) After Tax |
178.458 |
273.685 |
259.600 |
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Earnings in Foreign Currency : |
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Export Earnings |
103.829 |
118.193 |
0.000 |
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Commission Earnings |
189.778 |
127.310 |
0.000 |
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Other Earnings |
219.874 |
242.180 |
0.000 |
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Total Earnings |
513.481 |
487.683 |
0.000 |
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Imports : |
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Diesel Generating Sets |
0.000 |
104.733 |
0.000 |
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Stores & Spares |
554.120 |
485.265 |
0.000 |
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Capital Goods |
4.599 |
30.095 |
0.000 |
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Total Imports |
558.719 |
620.093 |
0.000 |
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Expenditures : |
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Cost of Goods Sold |
1427.613 |
1528.666 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
0.000 |
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Administrative Expenses |
939.694 |
870.794 |
0.000 |
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Interest |
29.006 |
30.843 |
0.000 |
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Raw
Materials |
0.000 |
0.000 |
1452.900
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Excise
Duty |
0.000 |
0.000 |
21.000
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Power
& Fuel Cost |
0.000 |
0.000 |
13.100
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Other
Manufacturing Expenses |
0.000 |
0.000 |
247.000
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Employee
Cost |
0.000 |
0.000 |
306.900
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Selling
and Administration Expenses |
0.000 |
0.000 |
198.100
|
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Miscellaneous
Expenses |
0.000 |
0.000 |
129.300
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Total Expenditure |
2396.313 |
2430.303 |
2368.300 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
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|
31.03.2007 |
|
Type |
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|
1st
Qtr |
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Sales
Turn Over |
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|
649.100 |
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Other
Income |
|
|
13.500 |
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Total
Income |
|
|
662.600 |
|
Total
Expenditure |
|
|
569.100 |
|
Operating
Profit |
|
|
93.500 |
|
Interest |
|
|
06.900 |
|
Gross
Profit |
|
|
86.600 |
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Depreciation |
|
|
19.500 |
|
Tax |
|
|
36.500 |
|
Reported
PAT |
|
|
40.700 |
200703 Quarter 1 --------------- Notes Expenditure Includes (Increase)/Decrease
in Stock in Trade Rs (33.90) million Consumption of Raw Materials & Cost of
Services Rs 369.80 million Staff Cost Rs 125.20 million Other Expenditure Rs
108.00 million Tax Includes Provision for Current Tax Rs 31.10 million Deferred
Tax Rs (10.10) million Fringe Benefit Tax Rs 5.40 million EPS is Basic &
Diluted Status of Investor Complaints for the quarter ended March 31, 2007
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 02 Complaints disposed off during the quarter 02 Complaints
unresolved at the end of the quarter Nil 1. The above results have been taken
on record by the Board of Directors at their meeting held on
KEY RATIOS
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
Debt-Equity
Ratio |
0.09 |
0.12 |
0.16 |
|
Long
Term Debt-Equity Ratio |
0.09 |
0.12 |
0.16 |
|
Current
Ratio |
1.54 |
1.53 |
1.49 |
|
TURNOVER
RATIOS |
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Fixed
Assets |
2.68 |
3.02 |
2.98 |
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Inventory |
9.10 |
8.69 |
8.39 |
|
Debtors |
3.37 |
4.03 |
4.48 |
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Interest
Cover Ratio |
8.31 |
10.90 |
14.17 |
|
Operating
Profit Margin(%) |
14.60 |
18.23 |
17.98 |
|
Profit
Before Interest And Tax Margin(%) |
11.11 |
15.44 |
15.44 |
|
Cash
Profit Margin(%) |
9.84 |
12.22 |
11.81 |
|
Adjusted
Net Profit Margin(%) |
6.34 |
9.43 |
9.27 |
|
Return
On Capital Employed(%) |
12.10 |
19.01 |
20.56 |
|
Return
On Net Worth(%) |
7.54 |
13.00 |
14.26 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.606.00 |
|
Low |
Rs.600.00 |
LOCAL AGENCY FURTHER INFORMATION
Operations
The Company's turnover for 2006 declined by 5% to Rs. Milliosn2754 and the
profit after tax registered a drop of 35% to MINR 178 primarily on account of
reduced orders due to the high cost of fuel prices and the resultant
increase in the cost of power. The shortfall in sales of power plants
was compensated partly by increase in service sales and ship power sales. the
Company has one reportable segment- Power Business.
During the year, the Company undertook a review of the reportable
segments on the basis of an analysis of the current profile of the products and
services offered by the Company, the current organization structure, internal
reporting framework, and the segment reporting principles followed by the
parent company and after reassessing
the risk and return profile concluded that the Company has one
reportable segment- Power Business.
The delivery of power plants during the year 2006 aggregated to 94 MW
(154 MW last year). During the same period, capacity commissioned totalled 157
MW (104 MW last year). The cumulative deliveries of power
plants to customers upto
while 47 MW is under installation and likely to be commissioned during
2007. In addition, as on 31st December, 2006, orders totaling 34 MW (82 MW last
year) are on hand for delivery and execution during 2007. The order intake
during the year 2006 was 86 MW as compared to 188 MW in the year
2005. The service network of the Company continues to support customers
through its well-networked offices and spare parts logistics. As of
power plant sites covering 151 engines and three steam turbine
generators totaling around 764 MW (compared to 60 power plants and 664 MW as of
Significant numbers of orders were placed by Indian shipyards on the
Wartsila Group for 4 stroke engines, 2 stroke engines, highspeed engines and
Propulsion Systems.
Coastal Wartsila Petroleum Private Limited (CWPL) — A 50:50 Joint Venture
with Coastal Energy Resources Limited,
The voluntary winding-up of CWPL, whichcommenced in the year 2003, is in
progress, pending finalisation of the statutory assessments under Sales Tax and
other allied laws. The carried over loss (before tax) as on
Term Loan
The Company had in the year 2003 availed a term loan of Rs. 300 million
to finance one Power Plant on 'Build Own and Operate' (BOO) basis. The loan is
repayable over a period of ten years from the proceeds
of Power Conversion Agreement with the Customer. The term loan is
secured by way of hypothecation of the Power Plant Equipment located at the
Customer's site and a portion of receivables - present and
future. The Agreement provides that in cases of specified instances of
default by the Customer, the lender shall have the right to proceed only
against the Customer and the assets offered as security for recovery of
their dues and under such circumstances, the Lender will not have
recourse to the Company.
During the year 2005, the lending institution had assigned the
outstanding term loan along with the mortgage and securities attached thereto
to a non-banking financial company. The servicing of the loan has been in
accordance of the schedule. The Company has in December, 2006 received a Buy
Out Notice from the Customer as per the Agreement and the sale of the
power plant is expected to be completed during the current year. The term loan
will be foreclosed prior to transfer of assets.
Public Announcement by Wartsila Corporation
Wartsila Corporation has made a Public Announcement, under the SEBI
(Delisting of Securities) Guidelines, 2003, specifying its intention to
acquire, through its 100% subsidiary Wartsila Technology Oy Ab, from
the public shareholders 12,40,599 equity shares constituting 10.31% of
the paid-up share capital of the Company. The price for the said acquisition
will be determined through the reverse book-building process.
Subject to Wartsila Corporation obtaining the requisite approvals, the bid period is
scheduled to commence from
the statutory approvals, may require the bid period to be rescheduled.
Consequent to the acquisition of shares, if the public shareholding falls below
the minimum level of public shareholding, steps will be taken to
delist the shares of the Company from both the Stock Exchanges viz. the
Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India
Limited (NSE).
Fixed Assets;
Land- Freehold
Building
Plant and Machinery
Furniture, fitting and Office Equipments
Vehicles
Technical Known-how
Contingent Liabilities:
|
Particular |
31.12.2006 (Rs.
in Millions) |
|
Guarnatees issued by banks to third parties
on Company’s behalf (secured by Hypothecation of tangible movable assets(both
present and Future) abnd a second charge on all immovable properties (both
present and future) |
215.574 |
|
Corporate guarantees issued to third parties |
39.600 |
|
Letter of Credit |
11.060 |
|
Sales tax demands - matters under appeal |
78.669 |
|
Income tax demands - matters under appeal |
38.599 |
|
Customs duty demands |
27.280 |
|
Bills discounted with banks |
41.399 |
|
Other demands |
11.678 |
(a) Capital Work in Progress of Rs. 10.473 Millions (Previous year
Rs.45.506 Millions) includes an amount of
Capital Advance of Rs. 10.378 Millions (Previous year Rs.4.099
Millions).
(b) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 13.513
Millions (Previous year Rs. 12.106 Millions) net-of advances paid Rs.
10.378 Millions (Previous year
Rs. 4.099 Millions).
History
Subject was incorporated on
Subject known previously as
Wartsila Diesel, was promoted by
The company entered the capital market in May, 1989 with a public issue to
part-finance its Rs 225 millions project to manufacture high-capacity,
medium-speed diesel engines and generating sets in the range of 500 to 7500 KW,
which were till then, imported from Oy Wartsila, Finland. The diesel generating
set, comprising a diesel engine and an alternator, is used as a preferred
alternative to captive power generation. The high-capacity DG sets are used by
large industries for captive generation of electricity.
The company assembles 3 MW to 6 MW DG sets by importing critical components and
sourcing other equipments from vendors in
The company invested a sum of Rs 85 millions in Coastal Wartsila Petroleum
Private Limited - a 50:50 joint venture with Coastal Energy Resources
Limited,
The company has identified Independent Power Producers and utilities as the
main focus areas and expects to earn one-third of its revenues from these two
in the next few years. The company has transformed itself into a total solution
provider during the year 2000.
Two gas projects and one dual fuel project are under installation, due for
commissioning in early 2002. With effect from 1st April, 2001 Wartsila Operations
& Maintenance India Limited was amalgamated with the company and became
100% subsidiary.
In 1986, Wartsila Diesel India
Limited (WDIL) was promoted by Wartsila OY AB of
In 1997, in line with the parent
company's global merger with NSD India Limited, the company's name was changed
to Wartsila NSD India Limited. The business of NSD India Limited had been
merged with the company, providing a boost to the later's marine engine
business.
The company entered the capital
market in May, 1989 with a public issue to part finance its Rs. 225 millions
project to manufacture high capacity, medium speed diesel engines and
generating sets in the range of 500 to 7500 KW, which were till then, imported
from OY Wartsila, Finland. The diesel
generating set, comprising a diesel engine and an alternator, is used as a
preferred alternative to captive power generation. The high capacity DG sets are used by large
industries for captive generation of electricity.
The Wartsila Diesel group, a part
of the Metra Corporation of
In 1994, Wartsila set up a 50:50
joint venture with Cummins Engine Company,
Subject is an Indo-Finnish joint venture, promoted by the Wartsila Group, who
have a 51% share. The Wartsila Group is
the leading global ship power supplier and a major provider of solutions for
decentralised power generation and of supporting services.
Subsequent to the approval by the
shareholders on
Business:
Subject is engaged in the business
of manufacturing and marketing of diesel
generating set.
The company undertakes total
turnkey assignments for the entire range of power plants, including design,
engineering, procurement and construction.
The company assembles 3 MW to 6 MW
DG sets by importing critical components and sourcing other equipments from
vendors in
The company invested a sum of Rs.
85 millions in Coastal Wartsila Petroleum Private Limited – a 50:50 joint
venture with Coastal Energy Resources Limited,
The company has identified
Independent Power Producers and utilities as the main focus areas and expects to
earn one-third of its revenues from these two in the next few years. The company has transformed itself into a
total solution provider during the year 2000.
Two gas projects and one duel fuel
project are under installation, due for commissioning in early 2002. With effect from
In 2000-01, the company entered
into contract for supply of High Speed DG sets for auxiliary power for naval
requirements.
The first ship set was expected to
be delivered in the October, 2002.
Power Division :
In the background of uncertainty
in the global and domestic markets, subject’s delivery of Power Plants during
the year under review continued to be low aggregating to 110MW (142 MW last
year)- CPP segment 92MW (107 MW) and IPP/utility segment 18 MW (35 MW). During
the same period. The capacity commissioned totalled 140 MW (154 MW last year).
As cans been seen the Industrial Captive Power Plants markets has dipped during
the year.
The cumulative deliveries of Power
Plants to Indian customers upto
The total order intake during the
year under report was almost at the same level as the previous year (115 MW as
compared to 113 MW last year). This year a majority of the orders were from
process and engineering textiles and chemical sectors for baseload Power
Plants.
There is an emerging opportunity
for industrial CPPs of lower Megawatt rating. It’s product portfolio and
service offering are being reoriented to capture this development.
The service network, strategically
spread across the country with regional presence in 7 cities backed with
computerised spare parts logistics support ensure an efficient round the clock
service for 526 DG Sets generating 2584 MW for its 184 customers.
Subject also offers on-site round
the clock operations and maintenance of land-based power plants. Awareness of
the benefits of a comprehensive operations and maintenance setup is increasing.
As on 31st December, 2003, subject operated and maintained 47 power
plant sites covering 98 engines totalling around 484 MW (compared to 33 power
plants and 348 MW as on 31st December, 2002) representing a
year-on-year growth of around 39% in new agreements. Further, subject has
entered into “Operate and Maintenance” contracts for 68 MW at 6 sites for which
the “Operate and Maintenance” activities will commence in the first quarter of
2004.
Subject has also started marketing
of special products and services which facilitate maintenance procedures and
enhance operating efficiency of the plants in operation.
The company is in trade terms
with :
K.
P. Foundaries
Filteration
Engineering
Excelhone
Manufacturing India Private Limited
The company has been accredited
with ISO 9001 Certification.
The company employs around 742
persons in it’s set up.
The company's fixed assets of
important value include freehold land, buildings, plant & machinery,
furniture, fittings & office equipments and vehicles.
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 |
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 |
YES |
|
--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 |
|