MIRA
INFORM REPORT
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Report Date : |
28.09.2007 |
IDENTIFICATION DETAILS
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Name : |
AIA ENGINEERING LIMITED |
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Registered Office : |
115 G V M M Estateodhav Road, Odhav, Ahmedabad 382 410, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.03.1991 |
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Com. Reg. No.: |
015182 |
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CIN No.: [Company
Identification No.] |
L29259GJ1991PLC015182 |
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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 : |
Subject is engaged in manufacture and sale of steel casting, alloy steel casting, cast iron casting, industrial furnaces, fabrication of equipments, machinery, spares, boilers, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 17024808 |
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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 satisfactory
track records. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office, Head Office Factory and Godown: |
115, G V M M |
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Tel. No.: |
91-7922901078 / 79 / 80
/ 81 / 82 |
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Mobile No.: |
91-7922901077 |
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E-Mail : |
aia.ahd@sma.sprintrpg.ems.vsnl.net.in |
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Website : |
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Area : |
928.79 sq.mtrs. |
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Plant: |
Plot Nos. 70-77, Survey Nos. 423/P, 426/P and 427/P, Mahagujarat
Industrial Estate, Sarkhej – Bavla N. H. 8-A, Village: Moraiya, Post:
Changodar, Taluka: Sanand, District: Ahmendabad 382 213, Gujarat, India |
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Godown : |
M-24, MIDC Area, |
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Tel. No.: |
91-7104-234541 |
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Branches : |
In 317, Raheja Arcade, No. 1/1, Koramangla Industrial Layout, Koramangla, Bangalore – 560 034, Karnataka Tel. No. 91-80-5084695, 5533856 Fax No. 91-80-5533856 305, Madam Bhikaji Cama Bhawan, 11, Bhikaji Cama Place, Ring Road, New Delhi – 110 066 Tel. No. 91-11-26186930, 26194612 Fax No. 91-11-26185938 E-Mail aiadel@vsnl.com Out of
PH: +442089092240
PH: +16153711786 UAE PH: +97167420241
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DIRECTORS
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Name : |
Mr. Dr. S R Ganesh |
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Designation : |
Director |
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Date of Birth/Age : |
15.06.1946 |
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Qualification : |
B. Tech (IIT), S M (Management) Sloan School of Management, MIT, USA,
PhD (Business Studies) London Business School, UK |
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Date of Appointment : |
14.04.2005 |
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Expertise in specific functional areas: |
He is a Management Consultant. He was a former Senate Member of IIT
Bombay, Professor of IIM Ahmedabad, Visiting Professor at various Management
Institutes like Andersen Graduate School of Management UCLA, USA, |
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Directorships held in other Public Companies: |
Aries Agro Limited |
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Membership / Chairmanships of Committees across other Public
Companies: |
Remuneration Committee (Aries Agro Limited) |
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Name : |
Mr Sanjay Mujmudar |
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Designation : |
Director |
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Qualification : |
B. Com, LLB, FCA and ACS |
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Experience : |
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Date of Appointment : |
07.05.2007 |
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Expertise in specific functional areas: |
He was got extensive experience and expertise in the field of Corporate
Law, Direct Tax Laws, Financial Advisory Services, Debt Syndications, Project
Finance, International Structures and Taxation Planning, M and A etc. He has contributed Papers and participated as Speaker on Corporate
Laws in Seminars and Conferences hosted by ICAI and CA Association,
Ahmendabad. He is also a regular Speaker in the SMTP Program of the Institute
of Company Secretaries of India, Ahmendabad Chapter. |
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Directorships held in other Public Companies: |
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Membership / Chairmanships of Committees across other Public
Companies: |
Members in the following committees of Dishman Pharmaceuticals and Chemicals
Limited and Aarvee Denims and Exports Limited:
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Name : |
Mr. Bhadresh K Shah |
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Designation : |
Managing Director |
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Name : |
Mr. Rajendra S Shah |
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Designation : |
Director |
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Name : |
Mr. Bhupendra A Shah |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Vinod Narain |
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Designation : |
Chairman |
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Date of Birth/Age : |
10.03.1930 |
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Qualification : |
National Certificate Course of Mechanical Engineers from |
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Date of Appointment : |
14.04.2005 |
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Expertise in specific functional areas: |
He is and industrialist based in |
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Directorship held in other Public Companies: |
Welcast Steels Limited |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of
Shareholders |
No. of Shares |
Percentage of Holding |
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Shareholding of Promoter and Promoter Group |
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Indian |
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Individuals / Hindu undivided |
12246143 |
65.15 |
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Foreign |
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Bodies Corporate |
831880 |
4.43 |
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Public Shareholding |
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Institutions |
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Mutual Funds / UTI |
3348891 |
17.82 |
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Financial Institutions / Banks |
5610 |
0.03 |
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Foreign Institutional Investors |
1037628 |
5.52 |
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Non-Institutions |
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Bodies Corporate |
554589 |
2.95 |
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Individuals - |
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Individual shareholders
holding nominal share capital upto
Rs. 0.1 Millions |
463663 |
2.47 |
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Individual shareholders holding nominal share capital in
excess of Rs. 0.1 Millions |
202660 |
1.08 |
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Any Other (Specify ) Clearing Member |
80113 |
0.43 |
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NRI/OCB/NRN |
25611 |
0.14 |
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Total |
1879788 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in manufacture and sale of steel casting, alloy steel casting, cast iron casting, industrial furnaces, fabrication of equipments, machinery, spares, boilers, etc. |
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Products : |
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Exports : |
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Countries : |
East, Europe and |
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Imports : |
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Products : |
Capital goods and Raw Materials |
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Countries : |
Europe and |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C |
PRODUCTION STATUS
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Capacity Production etc. |
30.03.2006 –
2007 |
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MT |
Rs. In Millions |
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a)
Installed Capacity
(Casting) (as certified by the Management) |
68600.000 |
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b)
Actual Production Manufacturing Job Conversion |
30968.272 289.788 |
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GENERAL INFORMATION
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Customers : |
Ø Larsen & Toubro Limited Ø Cimmco Birla Limited Ø Krupp Industries (Polysius) Ø Fuller India Limited Ø Walchandnagar Industries Limited Ø ABB ABL Limited Ø Lafarge (Raymond Cement) Ø Associated Cement Companies Limited Ø Gujarat Ambuja Cement Limited Ø Birla Ø Jayprakash Industries Limited Ø JK Corporation Limited Ø JK Straw Products Ø India Cement Limited Ø Saurashtra Cement Limited Ø Malabar Cement Limited Ø Andhra Cement Limited Ø Kudremukh Iron Ore Company Limited Ø Essar Steel Limited Ø Jindal Vijaynagar Steel Limited Ø Chowgule & Company Limited Ø Indian Aluminium Limited Ø
Ø Rama Phosphate Limited Ø Dharamsi Morarji Chemical Company Limited Ø Hindustan Zinc Limited Ø Birla Copper Limited Ø Mandovi Pellets Limited Ø
BHP Whyalla Long Product, Ø
Consolidated Gold Mines, Ø
Mount ISA Mines, Ø
WMC Ø
Pancontinental Gold Mines, Ø
Pasminco Mines, Ø
Helleyer Mines, Ø
Ø
Ø BAES TPS, Dahanu Ø GEB, Sikka Ø IB Valley Project Ø MPEB, Korba Ø MSEB, Chandrapur Ø NTPC, Unchahar Ø NTPC, Vindhyachal Ø PSEB, Bathinda Ø RSEB, Suratgrah Ø TNEB, Ennore TPS Ø UPSEB, Harduaganj Ø UPSEB, Obra International
Customers Ø Holcim Ø Lafarge Ø Heidelberger Ø Cemex Ø Italcimenti Ø FL Smidth Ø Polysius Ø
Indian Customers Ø BHEL Ø Grasim Ø ACC Ø Ultratech Ø
Ø Century Ø KHD – Humbolt Ø
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No. of Employees : |
310 (195 in factory, 50 as technicians, 30 as engineers, 35 as administrative staff) |
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Bankers : |
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State Bank of GVMM Branch, Odhav, Ahmedabad – 382 410, Ø ABN Amro Bank N V 7, Alkapuri, |
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Facilities : |
SECURED LOAN
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Talati & Talati Chartered Accountants |
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Address : |
Ambica Chambers, Near High Court, Navrangpura, Ahmedabad –
380 009, |
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Collaborators : |
South Western Corporation, |
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Associates/Subsidiaries : |
Ø H. C. Financial Private Limited Ø Centricast Enterprises Private Limited Ø Vrindavan Alloys Private Limited Ø Vari Investments Private Limited Ø Gray Cast Foundry Works Ø AIA Exports Private Limited Ø Welcast Steels Limited Ø Paramount Centerishum Castings Private Limited (51% Holding) Ø Reclamation Welding Private Limited (70% Holding) Ø Reclamation Welding Limited Ø Paramount Centrispun Castings Private Limited Ø
Vega Industries Limited, Ø
Vega Industries Llimited, Ø
Vega Industries ( Ø Welcast Steels Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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46000000 |
Equity shares |
Rs. 10/- each |
Rs. 460.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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17776400 |
Equity shares |
Rs. 10/-
each |
Rs. 177.764
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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187.968 |
177.764 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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4068.234 |
2261.002 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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4256.202 |
2438.766 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
137.361 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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0.0 |
137.361 |
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DEFERRED TAX LIABILITIES |
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17.659 |
13.982 |
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TOTAL |
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4273.861 |
2590.109 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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471.944 |
182.154 |
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Capital work-in-progress |
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595.701 |
65.086 |
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INVESTMENT |
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1643.280 |
1144.914 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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Sundry Debtors |
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Cash & Bank Balances |
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2839.843 |
2085.466 |
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Other Current Assets |
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Loans & Advances |
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Total
Current Assets |
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2839.843 |
2085.466 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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1276.907 |
887.511 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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1276.907 |
887.511 |
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Net Current Assets |
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1562.936 |
1197.955 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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4273.861 |
2590.109 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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Domestic Sales |
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2243.506 |
1661.007 |
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Export Sales |
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1750.827 |
1356.528 |
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Other Income |
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286.503 |
77.493 |
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Total Income |
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4280.836 |
3095.028 |
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Profit/(Loss) Before Tax |
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969.262 |
564.930 |
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Provision for Taxation |
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300.047 |
192.121 |
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Profit/(Loss) After Tax |
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669.215 |
372.809 |
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Earnings in Foreign Currency : |
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Export Earnings |
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1750.826 |
1356.528 |
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Total Earnings |
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1750.826 |
1356.528 |
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Imports : |
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Raw Materials |
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113.873 |
80.881 |
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Stores & Spares |
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41.529 |
24.017 |
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Capital Goods |
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72.904 |
14.545 |
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Total Imports |
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228.306 |
119.443 |
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Expenditures : |
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Manufacturing Expenses |
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1831.539 |
1537.229 |
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Administrative Expenses |
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271.249 |
267.488 |
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Trading Purchases |
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1178.915 |
677.852 |
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Interest |
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4.745 |
28.357 |
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Depreciation & Amortization |
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25.126 |
19.172 |
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Total Expenditure |
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3311.574 |
2530.098 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2007 (Rs. In
Millions) |
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Type |
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1st Quarter |
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Sales Turnover |
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1141.200
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Other Income |
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44.900
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Total Income |
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1186.100
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Total Expediture |
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957.500
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Operating Profit |
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228.600
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Interest |
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|
0.200
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Gross Profit |
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228.400
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Depreciation |
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10.200
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Tax |
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57.200
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Reported PAT |
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152.200
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Debt-Equity Ratio |
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0.02 |
0.17 |
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Long Term Debt-Equity Ratio |
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0.00 |
0.02 |
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Current Ratio |
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2.11 |
1.79 |
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Fixed Assets |
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8.18 |
9.93 |
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Inventory |
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10.84 |
13.98 |
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Debtors |
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|
3.76 |
3.21 |
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Interest Cover Ratio |
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70.24 |
17.28 |
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Operating Profit Margin(%) |
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25.25 |
20.51 |
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Profit Before Interest And Tax
Margin(%) |
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24.62 |
19.87 |
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Cash Profit Margin(%) |
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|
17.38 |
12.99 |
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Adjusted Net Profit Margin(%) |
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|
16.75 |
12.35 |
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Return On Capital Employed(%) |
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|
28.78 |
32.55 |
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Return On Net Worth(%) |
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|
19.99 |
23.67 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was incorporated on 11th March, 1991 at
Ahmedabad in Gujarat under the name and style of Magotteaux (
As per Scheme of Amalgamation and as per the Hon’ble High Court Order dated 07.05.1992, Ahmedabad Induction Alloys Limited (AIA) incorporated on 04.11.1978 was merged with the company without winding up.
Subject became a deemed public limited liability company with effect from 01.03.2001.
Subject was promoted by the
Subsequently, it was converted into a private limited liability company.
Fixed Assets:
Ø
Patents and copyrights
Ø
Land
Ø
Buildings
Ø
Plant and Machinery
Ø
Electrical installation
Ø
Furniture and Fixture
Ø
Vehicles
Ø
Laboratory Equipments.
Infrastructure and
Capex Plans
At the time of our initial public offer in December 2005, the company
had a capacity to manufacture 65,000 tonnes of mill internals per annum. Back
then, our plan was to set up a
However, during the course of implementation of this capex plan, the
company decided to augment its capacity further and has accordingly added the
necessary balancing equipment and infrastructure.
Thus, in to, the original expansion plan to add 52,000 tones of new
capacity now stands revised to 100,000 tones. The total capital outlay for this
project now stands at Rs. 1.250 million (as compared to the original capital
expenditure of Rs. 750 million).
The new capacity will come up in two phases. The first phase of 50,000
MT has already been commissioned and is in commercial production. The second
phase of 50,000 MT is expected to be commissioned for commercial production in
fourth quarter of 2007 – 2008.
Further, buoyed by robust demand from each of our user industries. We
are planning to undertake another round of capacity expansion.
Under the new plan, we will add fresh capacity of upto 100,000 tones per
annum, either through Brownfield or
The company has already arranged the funding for this project. In
December 2006, 1.02 million shares were placed to Qualified Institutional Buyers
at Rs. 1,225 per share to raise Rs. 1250.000 millions
Management Team
Mr. Vinod Narain –
Non-Executive / Independent Chariman
A Mechanical Engineer from
Mr. Bhadresh Shah
- Managing Director
A Metallurgical engineer from IIT Kanpur, he is the founder of AIA
Engineering. His Vision and positioning AIA as a niche mentallurgical products
company has placed it among the top three global companies in the miss
internals space.
Mr. Rajendra Shah
– Non-Executive – Independent Director
An Ahmendabad – based industrialist, he is a vital member of the AIA
think tank and a key contributor in important policy decision making.
Mr. Dr. S R Ganesh
– Non-Executive Director
He is a Mechanical Engineer from IIT Mumbai with a Management
Degree from the
Mr. Bhupendra A
Shah – Non-Executive / Independent Director
A Chemical Engineer from IIT,
Mr. Sanjay S.
Majmudar – Non-Executive / Additional Director
He is a practicing Chartered Accountant. His financial acumen
facilitates the planning of financing for the multiple projects that the
company undertakes.
Operating Review:
During the year under review, the turnover of
the company has gone up by 32.37% from Rs. 3017.535 millions to Rs. 3994.332
millions. Exports of the company have gone up by 29.07% from Rs. 1356.528
millions to Rs. 1750.826 millions. The profit Before Tax (PBT) has increased by
71.57% from Rs. 564.929 millions to Rs 969.262 millions. The profit after Tax
(PAT) has increased by 79.51% from Rs. 372.808 millions to Rs. 669.214
millions.
On a consolidated basis, the company (together
with its subsidiaries) registered a turnover of Rs. 5230.300 millions in the
financial year 2007 as compared to the turnover. Correspondingly, the
consolidated profit after tax grew by a healthy 80.15% at Rs. 943.210 millions
in the Fiscal Year 2007 as compared to PAT of Rs. 523.578 millions in 2006.
Future Expansion:
As mentioned earlier, the ongoing EOU
Greenfield project at Moraiya is under implementation. Thus, the first phase
has already come in production creating additional capacity of around 50,000
TPA and the second phase involving the capacity of further 50,000 TPA is
expected to come in production by March, 2008.
In addition to the above ongoing project, the
company has also firmed up plans for setting up another high chrome Mill
Internals unit with the capacity of additional 1,00,000 TPA at a suitable
location, preferably either in a SEZ or in any other convenient location in
Gujarat. The primary driver of this second expansion being planned is the
strategy of the company to ramp-up its capacities quickly so as to fully
capitalize upon the opportunity available to the company. The company is also
contemplating certain backward integration opportunities including setting up
to a captive power plant and a Ferro Chromium plant of a suitable size.
The company intends to use the QIP proceeds for
part funding of the above plans.
MANAGEMENT DISCUSSION AND ANALYSIS
- Industry
Overview
Infrastructure is the pivot on which economic
development of any country rests. Cement, Mining and Utilities are the basic
drivers of infrastructure development. Mill internals manufactured by AIAEL
find application in the above mentioned industries
The company basically employs alloy-casting
process for manufacture of the product, which require designing of alloys in
relation to end application. The casting process is followed by precision heat
treatment to develop required end properties. Therefore, company can generally
be classified as a foundry. The industry produces a specific range o high
chrome mill internals which are used as wear parts in the crushing / grinding
operations in the mills/plants of Cement, Mining and Utility industries,
therefore the market prospects are linked with the requirement of these
industries.
The demand of our products is driven by
maintenance requirement market and projects are requirement market. Outlook in
both areas of demand is healthy
Presently, the company is mainly focusing on
the Cement and Mining segment outside
- Swot Analysis
The company is uniquely positioned as a
supplier of High Chrome Mill Internals on a global scale, on account of the
following competitive strengths:
Ø Focus on the combination of Metallurgy, design and Applications.
Ø Comprehensive solutions based approach, as distinct from supply of
commodity products.
Ø Focus on technology research and development.
Ø Worldwide presence in more than 60 countries, being directly in front of
the customers through a net work of overseas marketing subsidiaries in the
Middle East, Europe and USA and warehouse facilities.
Ø Low cost production.
Ø Strategic commercial partnerships with leading OEM’s and customers.
Ø A management team comprising of Technocrats, Professionals and
Consultants having rich experience in High Chrome Mill Internal industry.
Weakness / Threats
Ø Inability to scale up the capacities rapidly owing to extremely high
importance of absolutely zero failure rate of the products expected from the
customers, requiring close monitoring of the quality.
Ø Issues related to logistics, particularly with the increasing volumes of
the products.
Opportunities and Strategies
Ø To tap the opportunities available in the global Mining segment and the
Cement, Mining and Utility segment in
Ø To maintain and further strengthen our capabilities of Research and
Development activity.
Ø To focus more on strategic relationship / commercial partnership with
international groups.
- Segment wise
Performance
The company primarily operates in only on
segment i. e. manufacturing of High Chrome Mill Internals. However, From the
market stand point, to give a better understanding of our market positioning,
it may be mentioned that in F Y 2007, 51% of the total consolidated sales came
from within India and balance 49% came from outside India.
- Outlook and
Prospects
The company is operating in high technology
oriented niche engineering segment, involving manufacturing of impact, abrasion
and wear resistant, high chrome mill internal products used by Cement, Mining
and Utility industries. The company services the replacement demand of these
industries and the OEM requirement for new capacities added.
Ø The replacement market is strong thanks to the strong demand of metal and
cement.
Ø The OEM business is also poised fro growth as new cement capacities are
being added not only in
The ongoing EOU Greenfield project at Moraiya
is under implementation. The first phase has already come in production
creating additional capacity of 50,000 TPA and the second phase involving the
capacity of further 50,000 TPA is expected to come in production during Q4 of
2007 – 2008
In addition to the above ongoing project, the
company has also firmed up plans for setting up another high chrome Mill
Internals unit with the capacity of additional 1,00,000 TPA suitable location,
preferably either in a SEZ or in any other convenient location in Gujarat. The
primary driver of this second expansion being planned is the strategy of the
company to ramp-up its capacities quickly so as to fully capitalize upon the
opportunity available to the company. The company also contemplating certain
backward integration opportunities including setting up of a Captive Power
Plant and Ferro Chromium plant of a situation size.
Contingent Liabilities not Provided fro in
Accounts
|
Particular |
31.03.2006-07 (Rs. In
Millions) |
31.03.2005-06 (Rs. In
Millions) |
|
a) Outstanding Bank Guarantees |
245.602 |
189.053 |
|
b) Letters of Credit |
15.162 |
7.381 |
|
c) Excise and Service Tax matters in dispute
|
1.993 |
2.027 |
|
d) Income tax matters in dispute |
5.619 |
2.039 |
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.39.74 |
|
|
1 |
Rs.80.34 |
|
Euro |
1 |
Rs.56.30 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
|