MIRA
INFORM REPORT
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Report Date : |
31.10.2007 |
IDENTIFICATION
DETAILS
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Name : |
GEE LIMITED |
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Formerly Known As : |
GENERAL
ELECTRODES AND EQUIPMENT LIMITED |
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Registered Office : |
Plot No. E-1, Road
No. 7, Wagle Industrial Estate, Thane – 400 604, Maharashtra |
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Country : |
India. |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.11.1960 |
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Com. Reg. No.: |
11-11879 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEG04756D |
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PAN No.: [Permanent
Account No.] |
AAACG2377B |
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Legal Form : |
Public Limited
Liability Company. Company’s shares are listed on stock exchanges. |
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Line of Business : |
Manufacturer of welding
electrodes |
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 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 243100 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established company having satisfactory track. Trade relations are fair.
Profit margin is under pressure. Payments are reported as slow but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office /Corporate Office/
Works : |
Plot No. E-1,
Road No. 7, Wagle Industrial Estate, Thane – 400 604, Maharashtra, India. |
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Tel. No.: |
91-22-25821277/2620/8023/0619 |
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Fax No.: |
91-22-25828938 |
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E-Mail : |
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Website : |
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Corporate Office : |
Plot No. E-1,
Road no 7, Wagle Industrial Estate, Thane (w)-400604 |
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Tel. No.: |
91-22-25821277 |
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Fax No.: |
91-22-25828938 |
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Branches /Regional Office: |
Located at :- v New Delhi v Hyderabad, Andhra Pradesh v Kolkata, West Bengal v Baroda, Gujarat v Chennai, Tamilnadu v Bhilai, Madhya Pradesh v Jamshedpur, Bihar v Trichirapally, Tamilnadu v
Rourkela,
Orissa v
Bhopal v
Bangalore v
Kochi v Jharkhar |
DIRECTORS
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Name : |
Mr. R. K. Agarwal
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Designation : |
Chairman |
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Name : |
Mr. S. L. Agarwal |
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Designation : |
Managing Director |
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Name : |
Mr. M. P. Dhanuka |
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Designation : |
Executive
Director (Marketing) |
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Name : |
Mr. S. M. Agarwal |
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Designation : |
Wholetime cum
Executive Director |
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Name : |
Mr. G. K. Saraf |
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Designation : |
Director |
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Name : |
Mr. Ashok Kumar |
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Designation : |
Director |
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Name : |
Mr. P. Bhaumick |
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Designation : |
Director |
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Name : |
Mr. K M Panthaki |
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Designation : |
Director |
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Name : |
Mr. Sujit Sen |
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Designation : |
Director |
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Name : |
M/s. Murarka
& Company |
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Designation : |
Company Secretary
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Address: |
100, M. G. Road,
Groun Floor, Suit No. 27, Kokata – 700007 |
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Tel. No.: |
91-33-22413626/5772 |
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Fax. No.: |
91-33-22413626 |
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E-Mail.: |
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Name : |
Mr Umesh Agrawal |
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Designation : |
Whole Time
director |
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Name : |
Mr. Avinah Saraf |
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Designation : |
Director |
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Name : |
Mr. Ashok Kumar |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Category |
|
No. of Shares |
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Promoters, Directors
and their relatives and Associate Companies |
|
1572869 |
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Financial
Institutions / Insurance Companies |
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212160 |
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Other bodies
Corporate |
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174419 |
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Individuals |
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409912 |
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NRIs |
|
400 |
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Total |
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2369760 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
welding electrodes |
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Products : |
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PRODUCTION STATUS:-
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Particulars |
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Installed Capacity |
Actual Production |
Welding Electrodes (Running Meters)
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76944553 |
45004692 |
GENERAL
INFORMATION
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No. of
Employees : |
210 |
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Bankers : |
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Facilities: |
Secured Loans |
31.03.2007 |
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Rs.
In Millions |
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Term Loan from |
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The Thane Janata Sahakari Bank |
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-Repayable within 1 year |
23.300 |
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-Others |
30.280 |
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Cash credit form |
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The Thane Janata Sahakari Bank |
71.494 |
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Vehicle Loan |
2.146 |
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Total |
127.222 |
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Unsecured Loans |
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Solex Commercial and Credit Private Limited |
5.000 |
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Interest accrued and due |
0.011 |
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Credit balance with Bank |
1.374 |
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Vitro Commodities Private Limited |
17.500 |
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Total |
23.886 |
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Secured Loan: Term Loan: As at
31 st March 2007, Rs. 53581155 (RY Rs. 7066992) was secured by hypothecation
of all existing and future plant and machinery, equipments and land and
building. Cash Credit: As at
31 st March 2007, Rs. 71494645 (RY Rs. 48393975) was secured by all stock of
raw material, semi-finished goods, work-in-progress, finished goods and book
debts. Above loans are
further secured by collateral security of Plot No. E-1, Road No. 7, Wagle Industrial
Estate, Thane (W)- 400 604 and guaranteed by Mr. S. L. Agarwal, Managing
Director. Vehicle loans
are secured by hypothecation of vehicles. |
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Banking Relations : |
Satisfactory |
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Auditors : |
M/s Ford, Rhodes,
Parks & Company Chartered
Accountants |
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Associates/Subsidiaries
: |
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CAPITAL STRUCTURE
Authorised
Capital :-
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10 each |
Rs. 50.000 millions |
Issued:-
|
No. of Shares |
Type |
Value |
Amount |
|
2373540 |
Equity Shares |
Rs. 10 each |
Rs. 23.735 millions |
|
2369760 |
Equity Shares |
Rs. 10 each |
Rs. 23.697 millions |
Subscribed & Paid-up Capital:-
|
No. of Shares |
Type |
Value |
Amount |
|
2369760 |
Equity Shares |
Rs. 10 each |
Rs. 23.697 millions |
Of the Above :-
1) 1,19,070 Equity
shares have been allotted as fully paid up pursuant to a contract without
payment being received in cash.
2) 1,77,732 Equity
shares have been issued as fully paid up bonus shares by capitalisation of
Reserves.
3) 18,95,808
Equity shares have been issued of Rs. 10/- at a premium of Rs. 51- and alloted during this year on
15.11.2006
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
23.698 |
4.739 |
4.7000 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
37.078 |
20.345 |
13.600 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
60.775 |
25.084 |
18.300 |
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LOAN FUNDS |
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1] Secured Loans |
127.222 |
58.031 |
44.500 |
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2] Unsecured
Loans |
23.886 |
0.000 |
0.000 |
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TOTAL BORROWING
|
127.222 |
58.031 |
44.500 |
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DEFERRED TAX
LIABILITIES |
4.724 |
3.034 |
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TOTAL
|
216.608 |
86.149 |
62.800 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
113.577 |
44.248 |
18.900 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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INVESTMENT
|
0.233 |
0.119 |
0.100 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
|
64.204
|
31.814
|
12.000
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Sundry Debtors
|
54.383
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29.756
|
23.800
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Cash & Bank Balances
|
2.644
|
7.332
|
11.200
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Other Current Assets
|
0.000
|
0.000
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0.000
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Loans & Advances
|
23.800
|
8.715
|
12.100
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Total Current Assets
|
145.031
|
77.617
|
59.100 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
32.299
|
30.657
|
14.300
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Provisions
|
9.934
|
5.178
|
1.000
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Total Current Liabilities
|
42.233
|
35.835
|
15.300 |
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Net Current Assets
|
102.798
|
41.782
|
43.800 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
216.608 |
86.149 |
62.800 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
437.902 |
350.688 |
253.200 |
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Other Income |
0.675 |
0.864 |
0.000 |
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Increase / (Decrease) in Stock |
8.569 |
3.449 |
0.000 |
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Total Income |
447.146 |
355.001 |
253.200 |
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Profit/(Loss) Before Tax |
18.968 |
11.092 |
5.600 |
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Provision for Taxation |
7.205 |
4.315 |
2.500 |
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Profit/(Loss) After Tax |
11.763 |
6.777 |
3.100 |
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Earnings in Foreign Currency : |
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FOB Value of Exports |
18.329 |
5.377 |
0.000 |
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Commission on export sales |
0.276 |
0.156 |
0.000 |
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Total Earnings |
18.605 |
5.533 |
0.000 |
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Import on CIF basis : |
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Imported Wire (Trading) |
86.929 |
63.707 |
0.000 |
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Raw Material |
10.214 |
0.308 |
0.000 |
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Store and Spares |
0.261 |
0.000 |
0.000 |
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Total Imports |
97.404 |
64.015 |
0.000 |
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Expenditures : |
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Material consumed |
307.446 |
248.050 |
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Manufacturing Expenses |
58.512 |
53.174 |
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Payment to Provision for Employees |
10.511 |
8.493 |
241.900 |
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Administration and Selling Expenses |
38.391 |
27.339 |
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Finance Charges |
11.002 |
5.611 |
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Depreciation |
2.313 |
1.240 |
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Total Expenditure |
428.175 |
343.907 |
241.900 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
|
Type |
1st Quarter |
|
Sales Turnover |
159.000 |
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Other Income |
0.100 |
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Total Income |
159.100 |
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Total Expenditure |
145.800 |
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Operating Profit |
13.300 |
|
Interest |
4.200 |
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Gross Profit |
9.100 |
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Depreciation |
1.200 |
|
Tax |
2.200 |
|
Reported PAT |
5.700 |
KEY
RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt
Equity Ratio |
2.73 |
3.01 |
3.09 |
|
Long
Term Debt Equity Ratio |
1.16 |
0.55 |
0.82 |
|
Current
Ratio |
1.08 |
0.99 |
1.19 |
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TURNOVER RATIOS |
|
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Fixed
Assets |
6.02 |
7.64 |
6.43 |
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Inventory
|
9.12 |
16.01 |
22.27 |
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Debtors |
10.40 |
13.09 |
10.04 |
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Interest
Cover Ratio |
2.73 |
3.41 |
2.24 |
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Operating
Profit Margin (%) |
7.38 |
4.82 |
4.51 |
|
Profit
Before Interest and Tax Margin (%) |
6.85 |
4.48 |
4.03 |
|
Cash
Profit Margin (%) |
3.22 |
2.28 |
1.72 |
|
Adjusted
Net Profit Margin (%) |
2.69 |
1.94 |
1.24 |
|
Return
on Capital Employed (%) |
21.00 |
23.00 |
20.59 |
|
Return
on Net Worth (%) |
30.81 |
40.00 |
25.83 |
LOCAL AGENCY FURTHER INFORMATION
DIRECTOR REPORTS:
Business Operations
Overall, there was
high growth in the economy and buonomy and buoyancy in the welding electrodes
segment during the year 2006-07. This was another excellent year. The company’s
performance surpassed several past records In terms of turnover and profits and
set new records and milestones. As mentioned in the last report, new plant at
Kolkata has started operations and the Kalyan plant will be operational during
the current financial year. With the installation of the Kolkata plant, the
Company’s capacity has gone upto 13,200 MT from 7,200 MT.
Energy, Technology
and Foreign Exchange
A statement giving details of conservation of energy, technology absorption
and foreign exchange earning and outgo in terms of the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto
in Annexure-A.
MANAGEMENT DISCUSSION AND ANALYSIS
Business Performance and Overview
The company has achieved highest sales and profit during the year. The management looks to the future with confidence, even though there is increasing competition from domestic and international manufacturers. During the year, the product range and production capacities were expanded. The new plant at Kolkata and a new MIG line went into commercial production. The above project and additional capacities on some of our existing lines are scheduled to go on-stream in 2007. The net sales of the Company during the year under review increased to Rs. 438 millions from Rs. 351 millions in the previous year, recording an increase of 25%. Operating profit (EBITDA) during the year under review was at Rs.32.29 millions. The commissioning of new plant at Kolkata resulted in increase in financial cost, which affected net profit margins. The net profit of the Company for the fiscal was Rs.11.76 million and the basic EPS was
Rs. 6.21 per equity share of Rs. 10 each.
OUTLOOK,
OPPORTUNITIES AND THREATS
Outlook:
Stable and consistent
growth in infrastructural industry indicates a sustainable growth and shows
favourable growth for the company. Technological expertise provides competitive
edge in the market.
Opportunities:
The expanding
market and shift towards better technologies by users of our products provide
opportunities for the company to grow. Focus on environment friendly
technologies and sustainable development initiatives, enables the company to
conform to best standards.
Threats:
Competition from
low end domestic and international manufacturers including new entrants, poses
a threat to company's profitability. Further, growth in employment
opportunities means a threat of attrition of trained personnel
The company has
received approvals of the leading National and International Organisations.
Fixed
assets
v
Land
v
Factory
v
Office
building
v
Plant
v
Electrical
v
Furniture
v
Office
equipment
v
Computer
v
Motorcar
v
Thane Plant
o
Free hold Land
at Kolkata
o
Lease hold
Land and Building,
o
Factory
o
Office
o
Plant and
Machinery
o
Electrical Equipment
o
Furniture
o
Office
Equipment
o
Computers
o
Motor Cars.
- Kolkata Plant
- Freehold Land
- Shed Building And Tubewell
- Plant and Machinery
- Electrical Installation
- Furniture and Fixtures
- Motor cars
- Computers
- Capital Work-in-Progress
- Kalyan Plant
- Lease hold Plant
- Shed Building And Tubewell
- Plant and Machinery
- Electrical Installation
- Flat at Siddhanchal
- Land and Building at Kalyan
- Shed and Building at Kolkata
Contingent
Liabilities and commitments
Guarantees
outstanding as at 31 st March 2007: Rs. 519318 (31 st March 2006: Rs. Nil)
During the year,
the Company made a rights offer for issue of 1895808 Equity Shares of Rs. 10
each at a premium of Rs. 5 per equity share, aggregating to Rs. 28437120.
Pursuant to same, 1895808 equity shares of Rs. 10 each fully paid up were
allotted on 15th November, 2006.
200000 equity
shares are to be issued in August, 2007, prior to the Annual General Meeting,
on preferential basis in accordance with SEBI (Disclosure and Investor
Protection) Guidelines, 2000. In terms of stipulation of the Stock Exchange,
Mumbai, this preferential allotment of equity shares rank paripassu with the
existing shares in all respects including dividends. Thus, the provision for
dividend and
taxes thereon has
been increased by a sum of Rs. 351000.
Website Details:
They are popularly
known to welding industry here in India and abroad as the company since the last three and half decades
and more. Their company General Electrodes and Equipments Limited manufactures
the widest range of welding electrodes and other consumables since 1969 with
technical tie up from Messer Griesheim GmbH of Frankfurt, West Germany. They
enjoy the coveted Det Norske Veritas accreditation as an ISO 9001:2000 company
Their plant set up is at Thane, Mumbai, India. With one-ton
capacity dry mixer and hefty extruders, which above normal industry
configuration, one is assured of volume production. In other words prompt
supply in various sizes and quantity with ISO certified quality. The reqired
support is assured off by their welding expertise and well-establised
distribution and sales channel partnerships.
Research and development plays a vital role in their
operations. Customer feed back in terms of welding challenges are taken in the
right spirit and tremendous efforts are put in by the chemist and metallurgists
to create new formulations in electrode making. Small wonder in over a
reasonable period of time SUBJECT is able to bring out a good number of new
welding electrodes and thus build an enviable product portfolio. SUBJECT also
reaches out to international data centers for product making intelligence and
to be at par with other welding consumables makers at a global level.
Subject does not wish to tie down the end users to GEE's own
in-house operations. In other word subjetc wants to give metal fabricators
global access to welding technologies, products and services. This is achieved
by establishing a close technical and commercial tie-up with european giant,
Air Liquide, a Fortune 500 company. This conglomerate owns and operates the
triumvirate, the three best known welding companies of Europe called SAF, OERLIKON and FRO. And to
be conduit for the smooth flow of European technology, products and services to
the Indian shopfloor SUBJECT had engaged the best known talents with decades of
experience in welding metallurgy and power source and systems engineering. And
to add to a new dimension to this operation and as reinforcement subject signed
up with Hyundai Welding Company
of Korea which has an offer a wide range of consumables and equipments.
Profile:
General Electrodes and Equipments Limited better known as GEE Limited
as established in 1969, in technical alliance with Messer Griesheim Gmbh of Frankfurt, Germany for the manufacture of
Quality Welding Electrodes. Subject is
an ISO 9001:2000 company accredited by Det
Norske Veritas.
At the company limited, they manufacture an extensive
range of welding electrodes for application on General Fabrication to
construction of Nuclear Equipment. Their entire manufacturing of the Electrodes
is done at Thane where they have a 1 ton dry mixer which is one of the biggest
setup in the industry. Thus, subject being one of the biggest Extruders has an
edge over the other manufacturers in the industry when it comes to reliability
and consistency in the quality of the product and bigger sizes. This is
possible with the joint effort of a dedicated team of enthusiastic
professionals who deliver value products that congregate the stringent quality
code requirements of various agencies and clients.
Product:
v For Mild Steed
v Low Hydrogen
v Cast Iron
v Non Ferrous
v Cutting and Chamfering
v Hard facing
v High Tensile
v Stainless Steel
v Filler Wires
v Tubular
v Maintenance
ITES:
Rapidly changing and
increasingly complex business forces are bringing fundamental shifts in
management and organization. The steady advance of technology, the complexity
of business operations and the need for constant growth are conditions that
require core competence in too many functional areas. This business climate
demands that companies adapt to keep up with the changes. Outsourcing has
helped companies improve business focus, free management from day-to-day
operations oversight and implement significant cost-saving measures. As
business practices continue to change and evolve within organizations looking
to remain competitive, the nature of outsourcing is undergoing a transformation
in both its use and its impact
The vision of the
company is to meet each client's particular needs and to provide support for
each phase of their consulting engagements. They continuously discover
innovative solutions to today's BPO demands and use their resources to research
and Analysis of the Business Process Outsourcing (BPO) market to better
understand its future and to implement step-head measures to guarantee the best
solutions to their clients.
The
company is led by world-class management team and their Call and Contact
centers offer different types of services:
- Technical and Non-Technical Helpdesk
- Telemarketing
- Market Surveys
- Data Collection for Market Research
- After sales support and service
- Data Entry -Transactions, Account
payables, Account receivables, Journal, General Ledger, Order Processing.
- Specializing in conversion from PDF/PEG/Tiff
images to word Documents
- Scanning from Text
- Imaging and Animation
They provide
round-the-clock support with lower average handling time, skill based routing,
low wrap-up time, low abandon rates and they have 100% ability for data process.
Their highly skilled and well-trained workforce manages their clients' services
to deliver customer support.
OTHER INFORMATION:
The company’s new marketing policy has given it substantial increase in sales and the company expects further increase in profitability also.
The company has received approvals of the leading National and International Organisations.
v Lloyds Register of Shipping
v American Bureau of Shipping
v Indian register of Shipping
v Bureau Veritas
v Det Norske Veritas
v Bureau of Indian Standards
v Indian register of Shipping
v Research Design and Standard Organisation
v M.N. Dastur and Company Limited
v Engineer India Limited
v Larsen and Toubro
v Toyo Engineering India Limited
v Technimont I C B Limited
v Indian Boiler Regulation
·
SALES
DEPARTMENT
sales@geelimited.com
·
INTERNATIONAL
TRADE
business@geelimited.com,
exports@geelimited.com
·
MANAGING
DIRECTOR
·
WHOLE TIME
DIRECTOR
smagarwal@geelimited.com
·
EXCUTIVE
DIRECTOR (MARKATING)
mpdhanuka@geelimited.com
·
VICE
PRESIDENT (SALES)
dbhattacharya@geelimited.com
·
GENERAL
MANAGER - QA / R and D
uagarwal@geelimited.com
·
FACTORY
MANAGER
thane@geelimited.com
·
ACCOUNTS
DEPARTMENT
accounts@geelimited.com
·
HR
DEPARTMENT
careers@geelimited.com,
jobs@geelimited.com
CMT REPORT [Corruption, Money laundering
& Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts, India Prisons Service, Interpol, etc.
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.39.32 |
|
UK Pound |
1 |
Rs.81.35 |
|
Euro |
1 |
Rs.56.75 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT
FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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
|
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 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
|
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
|
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
|
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
|
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
|
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
|
|
STOCK PRICES
|
Face Value |
Rs. |
|
High |
Rs. |
|
Low |
Rs. |
LOCAL AGENCY
FURTHER INFORMATION
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
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.39.32 |
|
UK Pound |
1 |
Rs.81.82 |
|
Euro |
1 |
Rs.56.90 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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. |
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 |
|