MIRA
INFORM REPORT
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Report Date : |
16.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
JBF INDUSTRIES LIMITED |
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Registered Office : |
Plot No. 273, Village Athola, Silvassa, Dadra and Nagar, Haveli, Union
Territory, INDIA |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
12.07.1982 |
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Com. Reg. No.: |
128 |
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CIN No.: [Company
Identification No.] |
U99999DN1997PLC000128 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMJ08465C |
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PAN No.: [Permanent
Account No.] |
AAACJ2575J |
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Legal Form : |
A public limited
liability company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and
Selling of Yarn, Bulk Drugs and Drug Intermediates, P.O.Y., etc. |
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 15517200 |
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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 part
of Arya Group, a small industrial house of Mumbai. Directors are reported as
experienced, respectable and resourceful businessmen. However, subject is not
faring well and continues to incur substantial losses in recent times.
Payments are reported as slow and delayed. The company can
be considered for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No. 273, Village Athola, Silvassa, Dadra and Nagar, Haveli, Union
Territory, INDIA |
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Tel. No.: |
91-260-2642745/46/2643861/62 |
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Fax No.: |
91-260-2642297 |
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E-Mail : |
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Website : |
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Corporate
Office : |
8th Floor,
Express Towers, Nariman Point, Mumbai – 400 021, Maharashtra |
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Factory 1 : |
v
Plot No. 273,
Village Athola, Silvassa, Dadra Nagar, Haveli, Union Territory v
Plot No. 53
& 43, Piparia Industrial Estate, Silvassa, Dadra Nagar Haveli, Union
Territory v
Plot No,
65-B, Piparia Industrial Estate, Silvassa, Dadra Nagar Haveli, Union
Territory v
Plot No. 6301,
6312 and 6313, GIDC, Vapi, District Valsad, Gujarat v
Plot No.
408, GIDC, Vapi, District Valsad, Gujarat v
Plot No.
C-6, MIDC, Mahad, District Raigad, Maharashtra v
Plot No. 11 and 215 to 231, Sarigam GIDC Indl. Area Tal: Umbergaon, Sarigam, Vapi, Gujarat v
Plot Nos.130, 133, & 138, Village Athal Silavassa, Dadra Nagar Haveli. |
DIRECTORS
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Name : |
Mr. Bhagirath
Arya |
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Designation : |
Chairman |
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Age |
57 Years |
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Qualifications |
B.E. ELECTRICAL |
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Nature Of Duties |
Overall Management & Control |
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Commencement Of Employment |
Since Inception I.E. 1982 |
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Experience |
32 Years |
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Name : |
Mr. Rakesh Gothi |
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Designation : |
Managing Director |
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Name : |
Ms. P. N. Thakore |
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Designation : |
Executive Director |
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Name : |
Mr. N. K. Shah |
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Designation : |
Executive Director |
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Name : |
Mrs. Veena Arya |
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Designation : |
Director |
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Name : |
Mr. Krishen Dev |
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Designation : |
Director |
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Name : |
Mr. S. Pandey |
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Designation : |
Nominee LIC |
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Name : |
Mr. Prakash Mehta |
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Designation : |
Director |
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Name : |
Mr. B R Gupta |
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Designation : |
Director |
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Name : |
Mr. Shailesh
Haribhakti |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Ujjwala G. Apte |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
21122812 |
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Institutions |
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35.46 |
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Mutual Funds / Institutions / Banks |
3379025 |
5.67 |
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Venture Capital Funds |
2940000 |
4.94 |
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Foreign institutional investors |
792798 |
1.33 |
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Public |
11860802 |
19.91 |
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Foreign Company |
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1. Citigroup Venture Capital international Growth Partnership
Mauritius Limited |
13024190 |
21.87 |
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2. FCCB – Full Conversion |
6440368 |
10.81 |
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Total |
59559998 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Selling of Yarn, Bulk Drugs and Drug Intermediates, P.O.Y., etc. |
GENERAL
INFORMATION
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Suppliers : |
v Aero Pack
Products v Computech India,
Fitzer Instruments (I) Private. Limited v Macrotherm
Industries v MAS Sealing
Systems Private. Limited v Manokamna Packaging v Met-Pro Qhemicals v Paras Alloys
& Salts Private. Limited v
Sathi Industries |
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No. of Employees : |
1800 |
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Bankers : |
v
Bank of
Baroda, 10/12, Bombay Samachar Marg, Fort, P o Box – 347, Mumbai - 400023 v
State Bank of
India, Bank Street, Mumbai – 400023 v
Sumitomo
Mitsui Banking Corporation v
HSBC Limited v
Andhra Bank v
Standard
Chartered Bank v
Central Bank
of India v
Indian
Overseas Bank v
SBI
Commercial & International Bank Limited v
Industrial
Development Bank of India v
State Bank
of Indore v
Bank of
India v
The Mitsui
Taityo Kobe Bank Limited, Nariman Point, Mumbai – 400021 |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Chaturvedi & Shah Chartered Accountants |
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Associates/Subsidiaries : |
©
All
companies of Arya Group ©
JBF Finance
Limited ©
Lunia
Brothers subsidiaries
© Gharpure Pharmachem Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
54375000 |
Equity Shares |
Rs.10/- each |
Rs.543.800
millions |
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 |
543.800 |
490.000 |
310.233 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3333.500 |
2524.600 |
1644.084 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3879.300 |
3014.600 |
1954.317 |
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LOAN FUNDS |
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1] Secured Loans |
3474.600 |
2491.300 |
1118.264 |
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2] Unsecured Loans |
1720.100 |
1775.600 |
423.181 |
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TOTAL BORROWING |
5194.700 |
4266.900 |
1541.445 |
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DEFERRED TAX LIABILITIES |
929.200 |
655.300 |
496.417 |
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TOTAL |
10003.200 |
7936.800 |
3992.179 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
6354.400 |
3017.800 |
3179.075 |
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Capital work-in-progress |
287.400 |
2170.400 |
141.900 |
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INVESTMENT |
1105.700 |
1271.300 |
2.170 |
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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 |
772.400
|
446.700 |
164.402
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Sundry Debtors |
1377.000
|
729.800 |
581.425
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Cash & Bank Balances |
119.200
|
563.700 |
100.079
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Other Current Assets |
0.000
|
0.000 |
0.000
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Loans & Advances |
1100.500
|
465.900 |
63.779
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Total
Current Assets |
3369.100
|
2206.100 |
909.685 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
788.200
|
529.100 |
150.009
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Provisions |
325.200
|
199.700 |
90.642
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Total
Current Liabilities |
1113.400
|
728.800 |
240.651
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Net Current Assets |
2255.700
|
1477.300 |
669.034
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
10003.200 |
7936.800 |
3992.179 |
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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 |
14795.800 |
7223.500 |
7383.910 |
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Other Income |
113.600 |
54.100 |
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Total Income |
14909.400 |
7277.600 |
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Profit/(Loss) Before Tax |
1205.600 |
599.700 |
503.416 |
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Provision for Taxation |
181.800 |
136.400 |
210.990 |
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Profit/(Loss) After Tax |
1387.400 |
736.100 |
292.426 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
12932.700 |
6636.929 |
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Administrative Expenses |
104.200 |
60.300 |
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Personal Expenses |
127.200 |
836.00 |
4994.867 |
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Purchases made for re-sale |
3.600 |
6.500 |
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Selling and Distribution Expenses |
278.200 |
118.300 |
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Interest |
268.800 |
109.500 |
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Total Expenditure |
13714.700 |
7199.500 |
4994.867 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 1st
\quarter |
30.09.2007 2nd
Quarter |
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Sales Turnover |
|
4948.100 |
5317.400 |
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Other Income |
|
34.100 |
36.900 |
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Total Income |
|
4980.200 |
5354.300 |
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Total Expenditure |
|
4373.300 |
4583.400 |
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Operating Profit |
|
606.900 |
770.900 |
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Interest |
|
106.500 |
90.100 |
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Gross Profit |
|
500.400 |
680.800 |
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Depreciation |
|
107.800 |
109.800 |
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Tax |
|
108.100 |
174.900 |
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Reported PAT |
|
26.4700 |
408.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
|
1.38
|
1.18 |
0.82 |
|
Long Term
Debt-Equity Ratio |
|
1.20
|
0.95 |
0.67 |
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Current Ratio |
|
1.21
|
0.96 |
0.81 |
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TURNOVER RATIOS |
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Fixed Assets
Ratio |
|
2.51
|
1.83 |
1.96 |
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Inventory |
|
26.44
|
27.45 |
53.24 |
|
Debtors |
|
15.30
|
12.79 |
17.59 |
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Interest Cover
Ratio |
|
5.48
|
6.46 |
3.76 |
|
Operating Profit
Ratio (%) |
|
11.42
|
11.17 |
10.25 |
|
Profit Before
Interest And Tax Margin (%) |
|
9.15
|
8.45 |
7.67 |
|
Cash Profit
Margin (%) |
|
7.28
|
7.83 |
5.85 |
|
Adjusted Net
Profit Margin(%) |
|
5.01
|
5.12 |
3.27 |
|
Return on capital
employed (%) |
|
18.05
|
13.16 |
20.32 |
|
Return on net
worth (%) |
|
23.49
|
17.34 |
15.74 |
LOCAL AGENCY FURTHER
INFORMATION
Fixed Assets:
²
Leasehold Land
²
Freehold Land
²
Building
²
Plant and Machinery
²
Furniture and Fixtures
²
Office Equipments
²
Vehicles
²
Equipments
The company was originally
incorporate at Mumbai having Com. Reg. No. 27772. Letter the registered office
of the company was transferred to Dadra & Nagar Haveli w.e.f. 28.11.1997
and a new Com. Reg. No. 128 of the Dadra Registry was obtained
History
Subject is a Bhagirath
Arya promoted company is engaged in the business of manufacturing different
Varieties of Yarn, Chemicals, Industrial Solvents, Dyes and Dye-intermediates.
JIL was originally incorporated as JBF Synthetics, a private limited company in
July 1982 and it was converted into a public limited company in Jan. '86. It
acquired its present name in Feb. '89.
Subject has set up a unit at Magad to manufacture high-value-added dyed
yarn and fancy yarn in 1985. In 1987, it set up another plant at Silvassa to
manufacture texturised and twisted yarn. It has also set up a plant at
Pondicherry to manufacture trichloroethylene and its derivates (cap.: 8000
tpa). It has set up an export division to export readymade garments, textiles
and chemicals.
Gharpure Pharmachem, a subsidiary of JIL, manufactures and deals in
chemicals and pharmaceuticals. It came out with a public issue of FCDs
amounting to Rs 253.900 Millions to part-finance its diversification into the
manufacture of dyes and dye-intermediates, bulk drug intermediates and isobutyl
benzene (estimated cost: Rs 406. 000 Millions ).
Subject made joint venture
with Pharmachemie, Colombo, to manufacture bulk drugs and formulations.It has
also entered into an agreement with Borisovskij Zavod, which will supply and
erect a vial filling plant for dry powder injectables on a turnkey basis.
Subject expansion
programme of increasing the POY production capacity to 27000 TPA was completed
in 1997-98. During the year 2000-01, the company embarked on an backward
integration process for production of polyester chips from PTA/DMT. The company
has completed the first phase of this backward integration project. Since the
market for SSP Chips most commonly known as Bottle Grade Chips is rapidly
growing the company decided to plunge into this new venture with the exisitng
infrastructure. The initial capacity installation of 10,800 TPA the project was
commisioned and in the trial run it has produced 52.6 MT in 2002-03.
During 2003-04 the company
has increased its installed capacity of Polyester chips and Polyester Filament
Yarn (POY) by 38800 MT and 12000 MT. With this expansion the total installed
capacity of Polyester chips and Polyester Filament Yarn (POY) has increased to
118800 MT and 60000 MT.
The company's new grass root plant of 600 tonnes per day for the
production of polyester chips at a cost of Rs.1700.000 Millions is still under progress. This project is
expected to be completed by the end of 2005.
Directors Report:
ACHIEVEMENTS:
Performance:
The overall production of Polyester Chips during the' year has increased
from 1,17,589 MT in 2005-06 to 2,43,129 MT in 2006-07, reflecting an increase
of 106.76%.
There was an impressive rise in sale of Polyester Chips from 57,866 MT in
2005-06 to 1,54,700 MT in 2006-07 reflecting an increase of 167.34%
The overall net profit of the Company rose from Rs, 426.9 millions to
Rs.805.9 millions, reflecting an increase of 88.78%.
The Company has shown excellent performance in the international market and
shown the increase in export from Rs.158.1 millions in 2005-06 to Rs. 1489.000
millions in 2006-2007.
Expansion:
During the course of year the Company has successfully commissioned the project
to manufacture 2,16,000 MT per annum Polyester Chips at Sarigam.
The
Company has also implemented and commissioned project to manufacture 90,000 MT
per annum POY at Athola.
CAPITAL STRUCTURE:
During
the year the Company has completed conversion of 3 million Foreign Currency
Convertible Bonds, out of 34.5 million Foreign Currency Convertible Bonds (
issued on 30th November, 2005) into 15,25,000 equity shares on 29th July,
2006.
Promoter
Group and Citigroup have exercised option of warrant conversion for 38,48,100
balance warrants allotted to them on 10th June, 2005, into equal number of
equity shares at Rs. 46.50 per share on 18th October, 2006.
Both the conversions resulted the increase in issued capital to
Rs.54,37,50,000.
SUBSIDIARY COMPANY:
A. The
name of joint venture subsidiary is changed from JBF RAK LLC to JBF RAK FZ LLC,
with effect from the date of issue of the relevant certificates by the
competent authorities in that behalf.
The
project undertaken by JBF RAK FZ LLC for setting up a world scale PET Polymer
Resin Plant in the Emirates of Ras A] Khaimah is nearing completion. The plant
is expected to start production of PET Chips by middle of June, 2007.
Statement
required under Section 212 of Companies Act, 1956, regarding the subsidiary
company is annexed hereto.
B. The Company has incorporated a wholly owned subsidiary in Singapore
JBIF Global Pte. Ltd., for its international operations.
MANAGEMENT DISCUSSION AND
ANALYSIS:
WORLD SCENARIO:
The
Global Polyester demand continues to be buoyant, fuelled by high economic
growth. Polyester production was estimated at 42.3 Million Tonnes in 2006, a
growth of about 2.3 Million Tonnes. The forecasted growth for the period
2007-08 is over 7%. China, in 2006, produced 16.5 Million tones, growth
averaging 15%. In contrast, Indian production is expected to grow to 3.5
Million Tonnes by 2008, annual growth being to the order of 12%. China and
India are forecasted to be major exporters of Polyester in time to come.
Globally,
the scenario for raw material also seems to be getting advantageous with more
PTA and MEG capacities getting commissioned. That raw material prices depend on
Oil prices is now proved to be a myth, with raw material prices varying more in
relation to demand and supply phenomenon.
PTA capacity increases in the World in 2007 end 2008 are expected to be
more than 7 Million tones, leading to an adequate surplus situation for the
consuming industry. It is expected that PTA availability will in future be
comfortable and at prices leading to a better profitability for the polyester industry.
Similarly,
in the case of MEG, the other raw material, there is a projected surplus by
2008 when new capacities to the extent of over 3.5 Million Tonnes materialize.
This will further lead to easing of prices by the next year on MEG.
INDIAN POLYESTER SCENARIO:
The
Synthetic Textile Industry in India is expected to grow at 12-15% per annum.
Rationalizations of duties and fall in raw material prices have brought the
industry into limelight. In India, Polyester has now become cheaper than cotton
leading to increasing demand for this fibre.
During
the year 2006-07, synthetic yarn producers paid 16% duties on inputs, they
could recover only 8% duty on output, leading to an accumulation of Cenvat
credit. The Government finally yielded to the repeated demands of the industry
and reduced duties for raw materials PTA and DMT to 8% and on MEG to 12%. This
reduced burden of accumulation of cenvat credit to a great extent. The
Government also reduced import duties on raw material in the previous year from
15% to 10% and subsequently, this year from 10% to 7.5%. Since the pricing of
Raw Materials is on import parity basis, this helps in bringing down the cost
of raw materials and leads to improvement in profit margins.
In
view of the above, Polyester has now become cheaper than cotton and this augurs
well for the Industry. In terms of usage, Polyester has the inherent advantage
of easy maintenance, better fall , and dyeing and finishing characteristics.
Statistics have now shown that Polyester is now the most preferred item
especially by the lower income strata of consumers.
In
India, 2006-07 saw capacity expansions getting commissioned for PTA by 2 major
suppliers in the country, additions being to the order of nearly 1 .2 Million
Tonnes per annum. In keeping with the international scenario, and with excess
capacity, there was a fall in PTA prices.
In
comparison to cotton, non cottons have shown a consistent growth of around 10%
per annum, whereas cotton growth has been only in the range of 3%. Subject to weather
conditions and restrictions on arable land, the incremental requirement for the
country's fibre needs will have to be made through non-cotton, dominated by
Polyester.
As of now , share of synthetics has gone up to 44% as compared to 26% a decade
ago. World over however, the share of synthetics is 60% and it is expected that
India will surely touch this proportion as well in case of synthetics.
In India there is a strong case for growth of Technical textiles. Such
textiles find application in various fields such as agriculture, engineering,
medicine, automobiles etc. This is a relatively unexploited area in India, and
considering that world over, more than 25% consumption for Polyester is for
Technical textiles. In India this segment is still in a nascent stage and there
exists a huge potential for the industry to exploit this market.
With specific reference to one of the main products at JBF, Polyester
Chips, even as of today there are a relatively few producers of Chips in the
domestic market, selling polyester Chips. As of 2006-07, the demand estimate
was nearly 440,000 Metric Tonnes, outstripping supply at 300,000 Metric Tonnes.
It is expected that the demand supply gap will continue to exist even up to
2010-11, in spite of proposed expansion in Chips capacity coming in from JBF.
With
reference to the other key product at JBF, Polyester partially Oriented Yarn
(POY), the total capacities in India have increased from 1.3 Million Tones in
2005 to 1.8 Million Tonnes in 2006 and expected to touch 2.5 Million tones by
2010 at a CAGR of 12.81%. Exports of POY are expected to take a major leap
forward following some of the conventional suppliers such as Taiwan or Korea
shutting down capacities at their end due to reasons of cost competitiveness.
Polyester chips Expansion:
New
Small Chips based capacities for POY are being set up and will also be on
expansion spree over the next one or two years. Foreseeing the requirement of
Chips in view of this additional growth, and as indicated earlier, the supply
demand gap in case of chips is likely to continue over the next 3 to 4
years.
Looking at this scenario, the company has gone ahead with additional
expansion of Polyester chips production, and it was decided to double the
capacity from 216,000 MT per annum at Sarigam Gujarat, to 432, 000 MT per
annum. JBF's total capacity of Chips, at the end of this expansion will be
550,000 MT per annum and will lead to consolidation and retaining its market
share in the Polyester Chips market in India. Plans are also underway to make a
wide penetration in the Chips export market and there has been a substantial
initial success in this regard.
Polyester PET Chips and Polyester Film plant at U.A.E.:
The
erection and installation activities for the proposed plant at Ras Al Khaimah
(RAK) in United Arab Emirates are in full swing. This project is a joint
venture with Ras At Khaimah Investment authority, with JBF having 60% equity
participation. The project envisages a total production of 324 000 MT per annum
of total production, of which 216,000 MT will be Polyester PET Chips and
108,000 MT per annum will be for Polyester Film. The commercial production for
PET Chips at this plant is expected to commence from the 1st half of June 2007.
The Film plant is likely to be commissioned shortly.
OPPORTUNITIES:
* With the commencement of Production activities at RAK in UAE, the company has
now established a wider network for sourcing of Raw material internationally.
Considering higher volumes; of intake of Raw Material, JBF, both in India and
in UAE will be able to procure better terms while sourcing for Raw
Materials.
* With certain countries such as Korea and Taiwan now turning into net
importers of POY, there are opportunities for JBF to take part in the enhanced
export markets.
* In case of Chips as well, huge potential with the existing Batch lines,
JBF can produce a wide array of specialized grades of Chips for new
applications and for diverse export markets.
* The increase in stand alone plants for producing POY from Chips gives
the opportunity to the company for catering to an enlarged market and company
will be exploiting this by putting up additional capacity for Chips
production.
THREATS:
* Certain quantities of Chips are still being imported at Under invoiced
Rates. This creates a non-level playing field in the market place.
Authorities are
seized of this situation and it is expected that such imports will be
controlled in future.
* Overcapacity in the POY industry can affect margins. JBF is attempting
to export larger quantities in case of POY and Chips to mitigate this
threat.
* Low priced imports of Polyester yarn from China are continuing.
Industry has initiated anti-dumping measures against such imports.
ADEQUATE INTERNAL CONTROLS:
The Company, in
consultation with its Auditors, periodically reviews and ensures the existence
of adequate internal control procedures and systems for the orderly conduct of
business.
The Internal
control systems are so designed to safeguard assets of the Company against
loss, unauthorized use or disposition and also include a review to ensure
overall adherence to management policies and applicable laws and regulations.
Cost control measures, with special emphasis on Cost cutting measures
especially on major cost determinants, have been implemented.
The Audit
Committee of Board of Directors actively reviews the adequacy and effectiveness
of internal control systems and suggests improvements for strengthening them.
The Company has strong Management information System which is an integral part
of control mechanism
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 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.39.35 |
|
UK Pound |
1 |
Rs.80.52 |
|
Euro |
1 |
Rs.57.56 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
YES |
|
--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. |
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 |
|