MIRA INFORM REPORT

 

 

Report Date :

27.09.2007

 

IDENTIFICATION DETAILS

 

Name :

WELSPUN POWER AND STEEL LIMITED

 

 

Registered Office :

Survey No, 650, Village Varsamedi, Taluka Anjar, District – Kutch- 370 110, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

03.06.2004

 

 

Com. Reg. No.:

044249

 

 

CIN No.:

[Company Identification No.]

U27109GJ2004PLC044249

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

RKTW00058C

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The company is engaged in manufacturing of Sponge Iron, Ingots Bilets and TMT bars.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1200000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a new company and a part of Welspun group. The company has shown satisfactory performance during the first year of its operations. Directors are reported as experienced and respectable businessmen. Trade relations are fair. Business is active. Payments are usually correct and as per commitment.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

Survey No. 650, Village Varsamedi, Taluka Anjar, District Kutch – 370 110, Gujarat, India

Tel. No.:

91-2836-573428/29

Fax No.:

91-2836-247070

E-Mail :

wpspl@welspun.com

Website :

http://www.welspunpowerandsteel.com

 

 

Corporate Office :

Trade World, B- Wing, 9th Floor, Kamala Mills Compounds, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Tel. No.:

91-22-56503000/24908000

Fax No.:

91-22-24908020

 

 

Factory 1 :

Welspun City, P O Box No. 21, Village – Versamedi, Taluka Anjar, District – Kutch, Gujarat – 370 110, India

Tel. No.:

91-2836-279051, 53, 54, 55, 56

Fax No.:

91-2836-279050

E-Mail :

wpsl@welspun.com

 

 

DIRECTORS

 

Name :

Mr. Balkrishan Goenka

Designation :

Director

Address :

6, Chancellor Court, A/88, Carmicheal Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

15.08.1965

Date of Appointment :

03.06.2004

 

 

Name :

Mr. Braja K. Mishra

Designation :

Director

Address :

AT P. O. Dungripali, District Balangir, Orissa- 767 023, India

Date of Birth/Age :

10.07.1963

Date of Appointment :

30.10.2004

 

 

Name :

Mr. Satish Bansal

Designation :

Director

Address :

Hubertus Str. 45, 41812 Erkelnz, Germany

Date of Birth/Age :

13.03.1943

Date of Appointment :

30.10.204

 

 

Name :

Mr. S. R.  Somani

Designation :

Director

Address :

N8-18, Ganpati Niwas Co Operating Housing Society, Bangur Nagar, Goregaon (West), Mumbai, Maharashtra, India

Date of Birth/Age :

23.01.1948

Date of Appointment :

22.03.2005

 

 

Name :

Mr. Sivananda Pradhan

Designation :

Director

Address :

Telanga Bazar, Cuttack, Orissa, India

Date of Birth/Age :

18.02.1942

Date of Appointment :

23.05.2005

 

 

Name :

Mr. Lal T. Hotwani

Designation :

Director

Address :

107-D Building, Ramayan Nagar,Dasera Maidan, Ulh Nagar, District Thane – 421 003, Maharashtra, India

Date of Birth/Age :

05.05.1953

Date of Appointment :

28.06.2004

Date of Cessation:

30.10.2004

 

 

Name :

Mrs. Deepali Goenka

Designation :

Director

Address :

6, Chancellor Court, A/88, Carmicheal Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

15.10.1969

Date of Appointment :

03.06.2004

Date of Cessation:

30.10.2004

 

 

Name :

Mr. Shailesh Vaidya

Designation :

Director

Address :

801, Sumer Heights, K M Mumshi Marg, Chowpatty, Mumbai – 400 007, Maharashtra, India

Date of Birth/Age :

03.11.1957

Date of Appointment :

10.05.2006

Partnership Held:

Kanya and Company

Advocates and Solicitors

Address: 43 Veer Nariman road, Mumbai – 400 001, Maharashtra, India

 

 

Name :

Mr. Lakhiram Sharma

Designation :

Director

Address :

E – 707, Laksarita Millitary Road, Off Marol Maroshi Road, Andheri (East), Mumbai – 400 059, Maharashtra, India

Date of Birth/Age :

11.09.1940

Date of Appointment :

10.05.2006

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Deepali Goenka

 

5000

Krishiraj Trading Limited

 

2120000

Welspun Finance Limited

 

1000

Welspun Mercantile Limited

 

2120000

Welspun Trading Limited

 

2120000

Welspun Wintex Limited

 

2120000

Methodical Investment & Trading Company Private Limited

 

5000

Goldan Arch Estates Private Limited

 

1000000

Radhika Goenka

 

2500

Vanshika Goenka

 

2500

Nextgen Far East Limited

 

5000000

 

Category

 

Percentage of Holding

Foreign holdings (Foreign Institutional investor(s), Foreign companie(s), Foreign financial institution(s), Non-resident Indian(s) or Overseas corporate bodies or others

 

20.00

Bodies Corporate (not mentioned above)

 

80.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in manufacturing of Sponge Iron, Ingots Bilets and TMT bars.

 

 

Products :

Product

ITC Code No.

Sponge Iron

72-03

Steel Ingots

72-06

Rolled Products

72-13

 

PRODUCTION STATUS

 

Particulars

 

 

 

Installed Capacity

Sponge Iron

 

 

 

60000 MT

Billets/ Ingots

 

 

 

26000 MT

TMT Bars

 

 

 

21000 MT

 

 

GENERAL INFORMATION

 

Suppliers :

v      Shah Engineering

v      Subham Packaging

v      Vrushabh Rubbers

 

 

Bankers :

Punjab National Bank

Leader of PNB Consortium , lllaco House, Fort, Mumbai

 

 

Facilities :

Particulars

As on 31.03.2005

Rs. In Millions

Secured Loans:

 

From Banks

 

Term Loans

(including interest accrued and due Rs. 1.373)

(Term loans from banks are secured by way of mortgage (first charge) on all movable and immovable properties of the company, both present and future, ranking pari passu, and are personally guaranteed by a promoter, director, Further, the said loans are also secured by second charge on current assets subject to prior charge in favour of banks for working capital facilities.)

357.518

Working Capital loans

(Secured by hypothecation of stocks and book debts of the Company and second charge on entire fixed assets of the Company and further secured by personal guarantee of a promoter director)

27.199

Total

384.717

 

 

Unsecured Loans

 

Short Term Loan from a  Bank

(including interest accrued and due Rs. 382.192 Millions)

50.382

Total

50.382

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Suresh Surana and Associates

Charted Accountants

Address :

310, Ahura Centre, 82, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India

 

 

Associates/Subsidiaries :

ð            Welspun India Limited

Areas of Business: Home Textiles – Terry Towels, Bed Sheets

ð            Welspun Gujarat Stahl Rohren Limited

Areas of Business: LSAW, Spiral and HFIW pipe manufacturing and coatings

ð            Welspun Syntex Limited

Areas of Business: Speciality Polyester Filament Yarn, Texturised and Dyed Yarns.

ð            Welspun Zucchi Textiles Limited

Areas of Business: Joint Venture with Zucchi, Italy to manufacture Bathrobes.

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

45000000

Equity Shares

Rs. 10/- each

Rs. 450.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

25000000

Equity Shares

Rs. 10/- each

Rs. 250.000 Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

250.000

150.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

52.715

10.222

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

302.715

160.222

LOAN FUNDS

 

 

 

1] Secured Loans

 

895.154

384.716

2] Unsecured Loans

 

150.207

50.382

TOTAL BORROWING

 

1045.361

435.098

DEFERRED TAX LIABILITIES

 

20.984

5.897

 

 

 

 

TOTAL

 

1369.060

601.217

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

815.974

385.895

Capital work-in-progress

 

339.074

107.002

 

 

 

 

INVESTMENT

 

0.020

0.000

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

241.389

145.740

 

Sundry Debtors
 

162.168

28.632

 

Cash & Bank Balances
 

32.347

27.115

 

Other Current Assets
 

0.317

0.025

 

Loans & Advances
 

194.704

43.322

Total Current Assets
 

630.925

244.834

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

408.756

134.971

 

Provisions
 

8.177

1.543

Total Current Liabilities
 

416.933

136.514

Net Current Assets
 

213.992

108.320

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

1369.060

601.217

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover

 

1346.728

160.591

Other Income

 

1301.710

323.180

Total Income

 

1348.029

160.914

 

 

 

 

Profit/(Loss) Before Tax

 

65.395

17.520

Provision for Taxation

 

20.973

7.297

Profit/(Loss) After Tax

 

44.422

10.223

 

 

 

 

Import Value

 

NA

99.705

 

 

 

 

Expenditures :

 

 

 

 

Raw Material consumed

 

990.068

127.869

 

Consumption of stores and spare parts

 

132.789

4.993

 

Increase or decrease in finished goods, work-in-progress

 

(54.677)

(23.948)

 

Salaries, wages and bonus

 

27.339

2.810

 

Payment of Auditors

 

0.701

0.055

 

Interest

 

31.644

3.758

 

Insurance Expenses

 

2.582

0.392

 

Power and Fuel

 

9.514

8.695

 

Depreciation and amortization

 

27.389

4.622

 

Other Expenditure

 

115.285

14.148

Total Expenditure

 

1282.635

143.394

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

3.30

5.53

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

4.86

9.48

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

4.52

2.37

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.22

0.11

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

4.83

3.57

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.51

1.79

 

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Introduction

 

The company is incorporated on 03.06.2004 as a Private Limited Company and pursuant to the resolution passed by the then members of the company on 05.08.2004; the company was converted into a Public Limited Liability Company.

 

The company is in gestation period and yet to establish itself. In view of this the directors suggest that the profit be ploughed back in the company and hence no dividend is recommended

 

Lease: Lease rentals in respect of properties acquired under operating lease are charged off to the profit and loss account as incurred.

 

The company’s project for manufacturing Sponge Iron commenced on 10.01.2005, Steel Ingots on 15.01.2005 and TMT Bars on 21.01.2005. The figures in profit & Loss Account pertain to the period after commencement of commercial production till 31.03.2005.

 

Fixed Assets

 

ð      Freehold Land

ð      Buildings

ð      Plant and Machinery

ð      Office Equipments

ð      Furniture and Fixtures

ð      Vehicles

 

Form 8

 

Name of the company

(hereinafter referred to as “the company”)

Welspun Power and Steel Limited

Presented By

 

1) Date and description of instrument creating the change

16/02/2005. Deed Of hypothecation executed in favour of Punjab National Bank leader of consortium, Andhra Bank, State Bank of India, State Bank of Indore (“PNB Consortium”)

2) Amount secured by the charge/amount owing on the securities of charge

Term Loan of Rs. 828.100 Millions sanctioned by PNB Consortium

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the movable properties of the Borrower including its movable Plant &Machinery, Machinery Spares, Tools & Accessories and other movables, both present & future whether installed or not and whether now lying loose or incase or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these present brought in to or upon or to be stored or be in or about all the Borrower’s factories, premises and godowns wherever situated, or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the borrower and either by way of substitution of addition

4) Gist of the terms and conditions and extent and operation of the charge.

The charge operates as security by way of First Charge for due repayment and discharge by the Company to the lenders for securing the Term Loan of Rs. 828.100 Millions together with interest, additional interest, costs, charges, penal interest, commission, expenses payable by the company to the lenders.

 

The company has undertaken to keep the goods in marketable and good condition at its own costs and shall keep the goods fully insured.

5) Name and Address and description of the person entitled to the charge.

Punjab National Bank, leader of PNB Consortium , lllaco House,

Fort, Mumbai

6) Date and brief description of instrument modifying the charge

Not Applicable

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

 

 

Name of the company

(hereinafter referred to as “the company”)

Welspun Power and Steel Limited

1) Date and description of instrument creating the change

16/02/2005.  Joint Deed Of hypothecation executed in favour of working capital lenders Punjab National Bank leader of consortium, Andhra Bank, State Bank of India, State Bank of Indore (“PNB Consortium”)

2) Amount secured by the charge/amount owing on the securities of charge

Working Capital facility of Rs. 266.000 Millions sanctioned by PNB Consortium

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the Current Assets of the Borrower  namely, Stocks of raw materials, Stock in process, Semi finished Goods and Stores and Spares not relating to Plant & Machinery (Consumable Stores and Spares), Export / Local Bills Receivable and Book Debts and advance to supplier for raw material, stores, spares, and consumables and all other movables, both present & future whether installed or not and whether now lying loose or incase or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these present brought in to or upon or to be stored or be in or about all the Borrower’s factories, premises and godowns wherever situated, or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the borrower and either by way of substitution of addition

4) Gist of the terms and conditions and extent and operation of the charge.

The charge operates as security by way of First Charge for due repayment and discharge by the Company to the Working Capital lenders for securing Rs. 266.000 Millions together with interest, additional interest, costs, charges, penal interest, commission, expenses payable by the company to the Working Capital lenders.

 

The company has undertaken to keep the goods in marketable and good condition at its own costs and shall keep the goods fully insured.

5) Name and Address and description of the person entitled to the charge.

Punjab National Bank, leader of PNB Consortium, lllaco House, Fort, Mumbai

6) Date and brief description of instrument modifying the charge

Not Applicable

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

 

 

Name of the company

(hereinafter referred to as “the company”)

Welspun Power and Steel Limited

Presented By

 

1) Date and description of instrument creating the change

16/02/2005.  Joint Deed Of hypothecation executed in favour of working capital lenders Punjab National Bank leader of consortium, Andhra Bank, State Bank of India, State Bank of Indore (“PNB Consortium”)

2) Amount secured by the charge/amount owing on the securities of charge

Working Capital facility of Rs. 266.000 Millions sanctioned by PNB Consortium

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

The whole of the Current Assets of the Borrower  namely, Stocks of raw materials, Stock in process, Semi finished Goods and Stores and Spares not relating to Plant & Machinery (Consumable Stores and Spares), Export / Local Bills Receivable and Book Debts and advance to supplier for raw material, stores, spares, and consumables and all other movables, both present & future whether installed or not and whether now lying loose or incase or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these present brought in to or upon or to be stored or be in or about all the Borrower’s factories, premises and godowns wherever situated, or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the borrower and either by way of substitution of addition

4) Gist of the terms and conditions and extent and operation of the charge.

The charge operates as security by way of First Charge for due repayment and discharge by the Company to the Working Capital lenders for securing Rs. 266.000 Millions together with interest, additional interest, costs, charges, penal interest, commission, expenses payable by the company to the Working Capital lenders.

 

The company has undertaken to keep the goods in marketable and good condition at its own costs and shall keep the goods fully insured.

5) Name and Address and description of the person entitled to the charge.

Punjab National Bank, leader of PNB Consortium , lllaco House,

Fort, Mumbai

6) Date and brief description of instrument modifying the charge

Not Applicable

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

 

 

 

WEBSITE DETAILS

 

Profile

 

The Welspun Group is an icon of trust, an umbrella of care and reliability, an image of continual growth, a wealth of resources and an affluence of opportunities. Incepted in 1985, with a small texturising unit, it has now grown and multiplied into a steadfast corporation with five diverse business units, with an aggregate turnover of over US $ 500 million.

 

The Welspun group has an established track record in varied fields. From terry towels to billets, from saw pipes to bathrobes, all output is attested with Welspun quality.

 

With a mission towards continual improvement and a vision to excel in each of its endeavours, Welspun is the perfect example of a modern day conglomerate.

 

 

Subject is a part of the US $ 500 million Welspun Group, has set up a state-of-the-art facility to manufactured ribbed thermo mechanically treated (TMT) rebars. The heat treatment process ensure that the rebars meet stringent quality standards and exhibit higher strength, better ductility, bend ability and weldability over the conventional bars used in the construction industry.

 

Stages

 

STAGE 1

 

The process utilizes residual heat from the rolling process to attain the desired mechanical properties. Blooms, which are heated in the re-heating furnace, are rolled through a series of rolling stands and progressively reduced to the final desired size and shape. As the hot rolled rebar emerges from the finishing stand of the bar mill, it is rapidly cooled. This quenching process by a special water spray system convert the surface layer of the bar to a hardened “Martenstic'structure While the core remains “Austenitic'

 

STAGE 2

Here the ‘Tempering' begins as the bar leaves the water-cooling section.

In the stage the heat flows from the core to the surface layer, transforming it into a structure called ‘Tempered Matensite'

While the core continues to stay ‘Austenitic'.

The third and final stage involves normal cooling to room temperature where the ‘Austenitic' core is transformed to a ductile ferrite+ pearlite structure.The finished bar has a Microstructure comprising of a tough outer layer of Tempered Martensite and ductile core of ‘Ferrite+pearlite'

This composite structure gives excellent yield strength to the bar along with superior ductility and Weld ability.

 

Quality

 

 

In the past, the conventional mild steel round having low yield strength were used for concrete reinforcement. These bars were then replaced by cold Twisted Deformed Bars exhibiting better yield strength.

Even with controlled carbon content, these bars continued to have the inherent problem of poor weld ability and ductility. Beside, additional twisting operation induced torsional stresses, which further reduced the corrosion resistance.

The heat treatment process in Welspun TMT Rebar's eliminates all these undesirable effects. thus higher strength is attained even with lower carbon content and they also have excellent ductility, outstanding bend ability and superior weld ability.

The low temperature rolling further enhances the quality of welspun TMT Rebars by way of higher strength.

Besides this because of tension free rolling close tolerance are possible and uniform quality of the product of the product is guaranteed.

Further more Welspun TMT Rebars facilities ensure easy handling and eliminate any damage to the product.

 

Key Features

 

ð            Lower carbon content and made from fully killed steel

ð            High yield strength, higher tensile strength, higher elongation percentage in comparison to cold twisted bars of the same grade

ð            Easy bend ability, weld ability and excellent ductility ensure economy and safety of use

ð            In-built ability to resist loss of strength at higher temperatures

ð            Requires less energy for bending and re-bending along with superior reverse bending properties

ð            Can be butt-welded or lap-welded

ð            Use of fe-500 grade steel consumption upto 15% in comparison to cold twisted bars

ð            Ideally suited for any type of concrete structure

 

 

NEWS

 

ð            A Welspun Venture – October 11, 2005, Business Standard

ð            Welspun receives Texprocil Gold Trophy for Outstanding Performance in Made–ups for the year 2004 - 2005

ð            India needs FDI in Home Textiles – September 14, 2005, Economic Times

ð            Opportunity provided by the post-quota regime – September 12, 2005, Business India

ð            Welspun unveils Rs. 6500 millions spread – September 1, 2005, Business Standard

ð            Welspun announces Rs. 6.5 bn, Phase II textile project at Anjar

ð            Why textile exports are booming – August 31, 2005, Economic Times.

ð            Well cushioned on high demand – August 7, 2005, Financial Express

ð            Press Release of the Un-audited Financial Results for the Quarter ended 30th June 2005 - Welspun India Limited

ð            Exporters see boom ahead – July 23, 2005, Times of India

ð            A wide choice of Pipe Coatings - June 27, 2005, Project Monitor

ð            Joining the overseas Juggernaut - May 31, 2005, Economic Times

ð            Welspun plans to increase domestic presence - May 7, 2005, The Times of India

ð            Welspun eyes growth via factory-owned mall model - April 29, 2005, The Hindu Business Line

ð            Customise your home - April 15, 2005, The Asian Age, Mumbai

ð            Welspun Media contract goes to Carat, RMG David - April 14, 2005, The Times of India

ð            Welspun India allots 9.079 millions shares to Temasek Holdings - April 5, 2005, The Hindu Business Line

ð            Welspun allots Shares/Warrants pursuant to its preferential issue

ð            Make 'Space' for it - March 6, 2005, The Hindu Business Line

ð            Temasek to buy 14% stake in Welspun via pref allotment - February 22, 2005, Economic Times

ð            Welspun plans home furnishing retail stores

ð            Glofame Cotspin posts pat growth of 55%, Cash profits up by 24%

 

 

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. 39.74

UK Pound

1

Rs. 80.34

Euro

1

Rs. 56.30

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions