MIRA INFORM REPORT

 

 

Report Date :

04.09.2007

 

IDENTIFICATION DETAILS

 

Name :

AUTOKAST LIMITED

 

 

Registered Office :

4/22 S N Puram, P.O, Chertala Alleppey, Kerala – 688 582

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

21.05.1984

 

 

Com. Reg. No.:

3975

 

 

CIN No.:

[Company Identification No.]

U27310KL1984SGC003975

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

TVDA00514D

 

 

PAN No.:

[Permanent Account No.]

AACCA3937H

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Manufacturer of all kinds of Ferrous Castings.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Maximum Credit Limit :

---

 

 

Status :

Sick Unit

 

 

Payment Behaviour :

Slow

 

 

Litigation :

--

 

 

Comments :

Subject is a sick unit and has been referred to BIFR. It has huge accumulated losses. Payments are slow and delayed.

 

The company can be considered for any business dealings on safe and secured trade terms and conditions, only.

 

 

LOCATIONS

 

Registered Office :

4/22 S N Puram, P.O, Cherthala Alleppey - 688 582, Kerala

Tel. No.:

91-478-2864961

Fax No.:

91-478-2862497

E-Mail :

autokast@satyam.net.in  / skkumar_acs@yahoo.com / autokast@sancharnet.in

 

 

DIRECTORS

 

Name :

Mr. T R V Kochappan

Designation :

Managing Director

 

 

Name :

Mr. K P Rajendran

Designation :

Director

 

 

Name :

Mrs. A U Vimala

Designation :

Director

 

 

Name :

Mr. K M Jayanarayanam

Designation :

Director

 

 

Name :

Mr. V Srinivasan

Designation :

Director

 

 

Name :

Mr. Philipose Thomas

Designation :

Director

 

 

Name :

Mr. S Sabu

Designation :

Managing Director

 

 

Name :

Mr. K C Mathew

Designation :

Managing Director

Address :

37/56, Kappikkara, Automobile Road, PalarVattom, Ernakulam, Kerala – 682 025

Date of Birth/Age :

24.05.1945

Date of Appointment :

08.10.2001

 

 

Name :

Mr. T C Khalid

Designation :

Managing Director

Address :

The Kkenchery House, Po Paluvayil, Via – Chavakkad, Thrissur,  Kerala

Date of Birth/Age :

08.02.1949

Date of Appointment :

29.09.2001

 

 

Name :

Mrs.  V Susamma

Designation :

Director

Address :

TC 5 1727, Gokul Nagar, Ambalamukku Kawdiar, Thiruvananthpuram, Kerala – 695 003

Date of Birth/Age :

15.10.1951

Date of Appointment :

22.10.2002

 

 

Name :

Mr. C U Mathai

Designation :

Director

Address :

K P X Joseph Lane, Kachani Karalulam P O, Thiruvananthapuram, Kerala

Date of Birth/Age :

21.04.1952

Date of Appointment :

25.07.2005

 

 

Name :

Mr. S Rajasekharan Nair

Designation :

Director

Address :

Surabhi, T C 19/23945, Poojappura, Thiruvananthapuram, Kerala

Date of Birth/Age :

24.11.1956

Date of Appointment :

29.03.2003

 

 

Name :

Mr. Abdul Razak Thail Akandy

Designation :

Director

Address :

Thailakandy, PO, Padnekat, Nileshwar Via, Kasaragod, Kerala – 671 328

Date of Birth/Age :

02.04.1963

Date of Appointment :

28.12.2002

 

 

Name :

Mr. S Ebrahim Kutty

Designation :

Director

Address :

Thaha Manzil, Punnala P O, Pathanpuram, Kollam, Kerala

Date of Birth/Age :

03.10.1949

Date of Appointment :

29.03.2003

 

 

Name :

Mr. M P Kunhi Koya Thangal

Designation :

Director

Address :

Mali Yackal House, Mullurkara, P O, Thrissur, Kerala

Date of Birth/Age :

16.05.1968

Date of Appointment :

22.12.2003

 

 

Name :

Mr. M Marappan

Designation :

Director

Address :

212 Panampilly Apartments, K S H Board Colony, Panampilly Nagar, Ernakulam, Kerala – 682 036

Date of Birth/Age :

13.02.1950

Date of Appointment :

29.09.2004

 

 

Name :

Mr. M M Hameed

Designation :

Director

Address :

Mercy College Road, Kallikad, Palipuram, Palakkad, Kerala

Date of Birth/Age :

23.05.1949

Date of Appointment :

28.09.2005

 

KEY EXECUTIVES

 

Name :

Mr. P S Nair

Designation :

Chairman

 

 

Name :

Mr. Younus Kunju

Designation :

Chairman

Address :

Shajahan Manzil, Vadakkevila, Po, Kollam, Kerala

Date of Birth/Age :

01.07.1941

Date of Appointment :

16.08.2002

Date of Ceasing :

28.09.2005

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Steel Industrials

 

1796998

Mr.M Pratap Babu

 

1

Mr. K C Mathew

 

1

 

 

 

 

Total

1797000

 

Equity Share Break – up ( Percentage of Total Equity )

 

Sr. No.

Category

Percentage

1

Government (Central and State)

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of  all kinds of Ferrous Castings.

 

 

Products :

 

PRODUCTION STATUS

 

         Licensed capacity

 

Current Year

1)       Grey Iron Castings

 

15000 MT/anm

2)       Malleable Iron Castin

 

4000 MT/anm

3)       S G Iron Castings

 

5000 MT/anm

4)       Steel Casting

 

3000MT/anm

      Total

 

27000 MT/anm

 

        Installed Capacity

 

Current Year

(This does not include malleable iron castings)

 

23000 MT/anm

 

 

GENERAL INFORMATION

 

Customers :

Agricultural Sector

  • Eicher Tractors
  • KAMCO
  • International Tractors
  • TAFE

 

Heavy Engineering Sector

 

  • Fouress Engineering
  • Audco India Limited
  • Macawber Beekay Limited
  • Kakathi Karshak Industries Limited
  • Bharat Pumps and Compressors
  • Kerala Electrical and Allied Engineering
  • Instrumentation Limited
  • Equitorial International Limited
  • Bharat Fritz Warner
  • BEML
  • CPC

 

Automotive Sector

  • Ashok Leyland
  • Addisons

 

Power Sector(Wind Mills)

 

  • NEG Micon Indoa Limited
  • Suzlon Energy Limited
  • Vestas RRB
  • Pioneer Wincon
  • NEPC

 

Marine Engineering

 

  • Kirloskar Oil Engines

 

Export

 

  • J Line Pump Company, USA
  • National Pump Company, USA
  • Mitsubhishi Cater Pillar, USA
  • Industrial Tyres Limited, Canada
  • Rotaval Limited, U.K.

 

 

Bankers :
  • Industrial Development Bank of India, Nariman Bhavan, 227, Vinay K Shah Marg, Nariman Point, Bombay – 400 021

 

  • State Bank of India, Beach Branch, Alappuzha

 

  • State Bank of Travancore- Hyderabad

 

  • State Bank of  Tranvancore – Salem

 

  • State Bank of Tranvancore – Bangalore

 

  • State Bank of Tranvancore -Trivandrum

 

  • State Bank of Tranvancore - Chennai

 

  • State Bank of Bikaner and Jaipur

 

  • State Bank of Patiala

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

K Suresh Kumar Verma

Chartered Accountant

Address :

BSS and Company, Thondankulangara, Allapuzha – 688 001, Kerala

 

 

Associates/Subsidiaries :

Nil

 

 

Holding Company:

Steel Industrials Kerala Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2000000

Equity shares

Rs.100/- each

Rs.200.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1897000

Equity shares

Rs.100/- each

Rs. 189.700 millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

189.700

179.700

189.700

2] Share Application Money

10.000

10.000

0.000

3] Reserves & Surplus

1.500

1.500

1.500

4] (Accumulated Losses)

[1297.451]

[1273.326]

[1240.783]

NETWORTH

[1096.251]

[1082.126]

[1049.583]

LOAN FUNDS

 

 

 

1] Secured Loans

547.982

548.182

548.180

2] Unsecured Loans

299.235

349.235

309.235

TOTAL BORROWING

847.217

897.417

857.415

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

249.034

184.709

192.168

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

34.000

36.887

40.233

Capital work-in-progress

2.662

2.804

2.663

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
23.821

25.770

24.151

 

Sundry Debtors
17.860

19.308

16.801

 

Cash & Bank Balances
1.137

3.440

0.891

 

Other Current Assets
0.330

40.389

0.184

 

Loans & Advances
2.491

2.517

3.884

Total Current Assets
45.639

91.424

45.911

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
303.069

289.040

256.446

 

Provisions
28.266

26.784

24.529

Total Current Liabilities
331.335

315.824

280.975

Net Current Assets
[285.696]

[224.400]

[235.064]

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

249.034

184.709

192.168

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

135.624

133.592

99.735

Other Income

0.339

0.556

493.611

Total Income

135.963

134.148

593.346

 

 

 

 

Net Loss

[19.366]

[32.368]

[37.924]

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

57.612

63.104

36.859

 

Administrative and other Expenses

0.000

0.000

2.992

 

Selling and Distribution Expenses

0.000

0.000

0.997

 

Financial Charges

0.000

0.000

7.443

 

Increase/(Decrease) in Finished Goods

[1.639]

[1.080]

0.000

 

Salaries, Wages, Bonus, etc.

39.928

37.959

0.000

 

Payment to Auditors

0.010

0.010

0.000

 

Interest

3.912

7.924

0.000

 

Depreciation & Amortization

2.927

3.386

3.696

 

Agricultural Expenses

0.000

0.000

0.026

 

Employees Remuneration and Benefits

0.000

0.000

43.405

 

Manufacturing and other Expenses

0.000

0.000

45.575

 

Other Expenditure

52.579

55.213

0.000

Total Expenditure

155.329

166.516

140.993

 

 

KEY RATIOS

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
[14.24]

[24.12]

[6.39]

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
[14.27]

[24.22]

[38.02]

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
[23.53]

[24.68]

[42.70]

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.01

0.02

0.03

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
[1.07]

[2.84]

[0.26]

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.13

0.28

0.16

 

 

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
[1.07]

[2.84]

[0.26]

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.13

0.28

0.16

 

 

LOCAL AGENCY FURTHER INFORMATION

 

FIXED ASSETS:

 

Buildings:

  • Buildings-Factory
  • Buildings-Non Factory
  • Roads and Compound Wall

 

Plant and Machinery

  • Plant and Machinery
  • Patterns
  • Motor vehicles
  • Office Equipments
  • Safty Equipments
  • Water supply and sewage
  • Other Equipments
  • Electricals Installation
  • Library Books
  • Furnitures and Fittings
  • Land and Site Development
  • Temporary Installation

 

Name of the company

AUTOKAST LIMITED

Presented By

Shri V K S Menon, Director

1) Date and description of instrument creating the change

29.06.1984 Deed of Hypothecation executed by the company in favour of Industrial Development Bank of India (IDBI).

 

A Certified copy of the said Deed of Hypothecation is enclosed.

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

The Bridge Loan of Rs. 30.000 millions be lent and advanced by IDBI to the company together with interest, additional interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, charges, expenses and all other moneys payable by the company to IDBI in terms of Bridge Loan Agreement dated the day of June 1984 between the company of the part and the IDBI of the other part.

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 company including its movable plant and machinery, machinery spares,  tools and accessories and other movables, both present and future (Save and except book debts whether installed or not and whether now lying or stored in or about or shall hereafter from time to time during the continuance of the security be brought into or upon or be stored or be in about the company’s factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the company or in the course of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession of the company and either by way of substitution or addition.

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

a)       The charge operates as security, inter alia, for the due repayment by the company to IDBI of its Bridge Loan of Rs. 30.000 millions, together with interest, additional interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, charges, expenses and all other moneys payable by the company to IDBI in terms of said Loan Agreement. 

b)       The charge in favour of IDBI under the said Deed of hypothecation is subject to the charge(s) created by the company in favour of its bankers on the company’s stocks of raw material, semi – finished and finished goods and consumable stores and book debts and such other movables as may be specifically permitted to secure its working capital requirements in the ordinary course of business.

c)       The company has undertaken to keep the goods hypothecated in marketable and good condition at its own costs and to insure the same in the joint names of the company and the IDBI.

d)       All the goods hypothecated and all the realizations and insurance proceeds thereof and all documents in respect of the said security are to be kept distinguishable and held as the exclusive property of the IDBI.

e)         The security created under the said Deed of hypothecation is to be a continuing  security.

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

Industrial Development Bank of India, Nariman Bhavan, 227, Vinay K Shah Marg, Nariman Point, Bombay – 400 021

 

 

Name of the company

AUTOKAST LIMITED

Presented By

T. R. C Nair, Company Secretary

1) Date and description of instrument creating the change

Letter of Hypothecation dated 17.07.0992 and shipping lien dated 17.07.1992 executed by the company  in favour of State Bank of India, hereinafter referred to as ‘The Bank’ for an export packing preshipment credit of Rs. 3.000 millions.

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

Rs.3.000 millions towards export packing pre- shipment credit.

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

1)       The whole of the Borrower’s stock of Sponge iron, scrap whether raw or the articles manufactured and all the articles manufactured there from as per the Letter of Hypothecation dated 17.07.1992.

2)       Ferrosilicon, Ferromanganese, Ms. Steel scrap, Graphite Electrode, sand and Ferrosilicon Magnesium additives,etc. and finished goods of GI, SGI, and Steel castings as per the shipping lien dated 17.07.1992

4) Gist of the terms and conditions and extent and operation of the charge.
  1. The packing credit is repayable on demand.
  2. The interest payable is at the rate of 15.5 percent per annum upto 180 days and 17.75% beyond 180 days and in all upto 270 days with prior BI approval which shall be calculated on the daily balance payable by the Borrower to the Bank and charge in account on the last working day of each month.

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

State Bank of India, Beach Branch, Alappuzha

 

 

WEBSITES DETAILS:

 

Established in 1984, Autokast Ltd., is fully equipped to manufacture all kinds of Ferrous Castings weighing from 5 kg to 8000 Kg single piece. The annual production capacity is 18000 Metric Tons. Autokast produces and markets different grades of Grey Iron and SG Iron Castings for the domestic and international markets. In fact Autokast can produce Quality Castings in all grades of Grey Iron and SG Iron. 


Range of Alloys manufactured at present include FG-200 to FG-300, SG-400/12, SG-500/7, GGG.40.3 grade, Grey Iron With 2% Nickel.


An ISO 9002 Company Autokast has different production lines each of which caters to different market segments. 

 

PRODUCTION FACILITIES

Moulding 

Pc.Wt.

Min/Max

Hand moulding .

200 kg            to                 8000 kg.

Conventional Machine Moulding

50 kg              to                 200 kg 
(Box size-1190X 790X 400/350mm
or 750x790x400x350 mm)

High Pressure Moulding Line. 

5 kg                 to               150 kg
(box size-750 X 750 X 350/400)

Melting & Casting     

Melting facilies include Arc Furnaces  and Mains Frequency Induction  Furnaces  of 6 MT capacity  each.

Fettling & Finishing 

Fully Equipped    

Inspection/Testing

All in house  

ISO Certification

Accreditation by KEMA for ISO 9002 Certificate No: 2001830 valid upto March 2003.

Customers

Domestic.........70%

 

Export ............30%   

 

Major Customers :-

                                                                      

Ø       Agricultural Sector

 

Eicher Tractors

Carter Housings, Crank Housings, Fly wheel Housing, Crank Case(3 Bore) etc.

KAMCO 

Main Gear Case Cylinder Frame, etc

International Tractors

Differential Housing

TAFE

Hydraulic Lift Cove

 

 

Ø      Heavy Engineering Sector 

 

Fouress Engineering

Butterfly Valve Bodies & Discs

Audco India Ltd 

Butterfly Valve Bodies & Discs

Macawber Beekay Ltd  

Dome Valve Bodies, Adapters, Ash Vessels

Kakathi Karshak Industries Ltd

Vaccum Pump Castings

Bharat Pumps & Compressors

Pump / Compressor Castings

Kerala Electrical & Allied Engg.

Rope Drums, etc.

Instrumentation Limied 

Valve Bodies

Equitorial International Ltd  

Castings for Heavy Earthmovers   (Wheel Rims, etc) Scissor Lift Wheels

Bharat Fritz Warner

Castings for Machine Tools (Columns, Knees, Tables, etc.)

B E M L  

Castings for Heavy Earthmovers (Idlers, Stearing Cases, etc)

CPC

Pump Cases

 

 

 

Ø      Automotive Sector

 

Ashok Leyland

Brake Drums

Addisons

Flywheels

 

 

 

Ø      Power Sector ( Windmills )

 

NEG Micon India Ltd.

Wind Mill Hub, Br-disc(GGG 40.3)

Suzlon Energy Ltd  

Wind Mill Hub, Extenders(GGG 40.3)

Vestas RRB 

Wind Mill Castings in GGG 40.3

Pioneer Wincon  

Wind Mill Castings in GGG 40.3 

NEPC

Wind Mill Castings in GGG 40.3 

 

 

 

Ø      Marine Engineering

 

Kirloskar Oil Engines

Heavy Duty Blocks for Marine applications and component

 

Ø       EXPORT

 

J.Line Pump Co:  USA 

Pump Castings

National Pump Co:  USA 

Pump Castings  

Mitsubhishi Cater Pillar  USA 

Wheel Rims

Industrial Tyres Ltd, Canada  

Wheel Rims

Rotaval Ltd. U.K.

Vave Body & Cover

 

OTHER INFORMATION:

 

Contigent Liabilities:

 

Particulars

31.03.2004

31.03.2003

1)       Letter of Credit

Nil

Nil

2)       Counter Guarantee issued and outstanding

Nil

3.034 millions

 

NOTES:

 

Honourable Bench No.IV of the Board for Industrial and Financial Reconstruction sanctioned the scheme of Rehabilitation of Autokast Limited at its hearing held on 07.12.1995 with cut off date 31.03.1995 and as such the Scheme came into force from 01.04.1995./ Government of Kerala vide GO(MS)No. 210/95/ID dated 28.12.1995 approved the same with various reliefs and concessions. Banks also have accepted scheme. The company recalculated the various loans including working capital loans have been recalculated at the rate contemplated in the BIFR Sanctioned scheme. Interest on various loans including working capital loans have been recalculated at the rate contemplated in the BIFR sanctioned scheme. As per the GO Rs. 119.500 millions had been paid to IDBI AS One Time Settlement in full and final Statement of their term loan  and interest accrued on term loan fully waived. As per the GO (a) Government Loan of Rs. 24.200 millions to be converted into equity and the same is treated s advance  against share capital pending as equity (b)  entire interest accrued on government loan Rs.24.200 millions and ID loan Rs. 13.000 millions waived (c) IDF Loan of Rs. 13.000 millions converted into interest free loan repayable during 1997-98 to 2004-05 (d) Moratorium on Sales Tax for a period upto 30.06.1999 (e) all funds provided after 31.03.1995 will be treated as interest free (f) Guarantee Commission in respect of Banks and Financial Institutions waived (g) Electricity duty waived for five Years from date of registration with BIFR  (h) Interest on term loan from Banks and IFCI as on 31.03.1995 have been converted into FITL and payments rescheduled as contemplated  in the BIFR sanctioned scheme and Banks and IFCI s sanctions (i) Core irregularity in Working Capital loans and interest irregularity in working capital as on 31.03.1995 converted into WCTL and FITL . These have been incorporated in the books of accounts during the year 1995-96 under prior period adjustment account and other accounts. Banks did not incorporate the figure in their books of account. Interest on various loans recasted as per the scheme, has been calculated and shown in the accounts upto 2002-03, Since the consortium Banks have confirmed the balances as on 31.03.2004 without charging any interest on Term Loans and Working Capital Loans we have not provided the interest for the year on the above loans.

 

At the hearing of the BIFR held on 18.08.2000 BIFR declared the original package as failed and on 24.04.200 directed the operating agency (SBT) to advertise for the change of management. No response was received against the above advertisement,. In the meantime Kerala State Restructuring and Internal Audit Board (RIAB) in consultation with Autokast Limited and UNDP prepared a restructuring proposal whish was approved by Government. As part of restructuring VRS was implemented in the company in August / September 2003. At Present Company is showing improvements in operations.

 

Unsecured Loan includes a sum of Rs. 10.000 millions being interest free loan to be converted as Share capital from Government of Kerala. Since necessary G.O. is to be received routing the transfer of the amount through holding company SILK Also a sum of Rs. 10.000 millions received towards procurement of a DG set is shown as advance towards Share capital pending allotment. During the years Government of Kerala have provided a sum of Rs. 1.500 millions through Kerala Minerals and Metals Limited.

 

 

 

 

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.40.85

UK Pound

1

Rs.82.54

Euro

1

Rs.55.76

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

--

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

--

--LEVERAGE

1~10

--

--RESERVES

1~10

--

--CREDIT LINES

1~10

--

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

NO

TOTAL

 

9

 

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

 

 

 

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