MIRA
INFORM REPORT
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Report Date : |
30.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
IAI INDUSTRIES LIMITED |
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Registered Office : |
202 Kusal Bazar, 32-33, Nehru Place, New Delhi – 110019 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.06.1995 |
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Com. Reg. No.: |
55-69837 |
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CIN No.: [Company
Identification No.] |
U74899DL1995PLC069837 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEI04159B |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufactures of fabricated tabular parts, brake and fuel lines and high
pressure fuel injection pipes for automobile industry. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 150000 |
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Status : |
Satisfactory |
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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. Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION
DECLINED BY
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Name : |
Mr. S B Sardana |
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Designation : |
Director |
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Name : |
Mr. K. V. Chandran |
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Designation : |
Secretary |
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Contact No.: |
91-9313271585 |
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Date : |
16.04.2008 |
LOCATIONS
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Registered Office : |
202 Kusal Bazar, 32-33, Nehru Place, New Delhi – 110019, India |
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Tel. No.: |
91-11-26419619 |
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Fax No.: |
91-129-2413136 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. D. K. Mehtani |
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Designation : |
Director |
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Address : |
104, Lunawat, JCSI Colony, Bhosely Nagar, Pune |
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Date of Appointment : |
01.04.2005 |
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Name : |
Mr. Aman Mehtani |
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Designation : |
Director |
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Address : |
Flat No. 104, Lunawat Classic, ICS Colony, Pune – 411007, Maharashtra,
India |
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Date of Birth/Age : |
05.08.1981 |
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Date of Appointment : |
20.08.2004 |
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Name : |
Mr. Sham Bhari Sardana |
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Designation : |
Managing Director |
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Address : |
D – 99, Panchsheel Enclave, New Delhi – 110019, India |
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Date of Birth/Age : |
21.03.1944 |
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Date of Appointment : |
01.11.2002 |
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Name : |
Mr. Jagjit Singh Lamba |
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Designation : |
Director |
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Address : |
House No. 9, Sector 16-A, Faridabad – 121001, Haryana, India |
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Date of Birth/Age : |
15.09.1938 |
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Date of Appointment : |
01.10.1995 |
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Name : |
Mr. Inderjit Singh Bhalla |
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Designation : |
Director |
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Address : |
Block No. H – 59, West Patel Nagar, New Delhi – 110068, India |
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Date of Birth/Age : |
05.06.1937 |
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Date of Appointment : |
30.09.1998 |
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Name : |
Mr. Darshan Kumar Mehtani |
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Designation : |
Director |
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Address : |
104, Lunawat Classic, ICS Colony, Bhosle Nagar, Pune – 411007,
Maharashtra, India |
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Date of Birth/Age : |
10.04.1953 |
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Date of Appointment : |
01.04.2005 |
KEY EXECUTIVES
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Name : |
Mr. Vikram Mehra |
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Designation : |
Secretary |
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Address : |
408, ‘A’ Block, Rail Vihar, Sector – 45, Faridabad – 121004, Haryana,
India |
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Name : |
Mr. K. V. Chandran |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 30.09.2007
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufactures of fabricated tabular parts, brake and fuel lines and high
pressure fuel injection pipes for automobile industry. |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
Citi Bank NA, Jeevan Vihar, 2 Sansad Marg, New Delhi – 110001, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sunil Garg Chartered Accountants 48, Khan Market, New Delhi – 110019, India Rakesh Raj and Associates Chartered Accountants B – 565, Sector – 7, Faridabad – 121006, Haryana, India |
CAPITAL STRUCTURE
AS ON 30.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3000000 |
Equity Shares |
Rs. 10/- each |
Rs. 30.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1126040 |
Equity Shares |
Rs. 10/- each |
Rs. 11.260
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
11.260 |
11.260 |
11.260 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
25.875 |
22.379 |
11.821 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
37.135 |
33.639 |
23.081 |
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LOAN FUNDS |
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1] Secured Loans |
32.781 |
18.966 |
10.122 |
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2] Unsecured Loans |
10.834 |
11.138 |
11.170 |
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TOTAL BORROWING |
43.615 |
30.104 |
21.292 |
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DEFERRED TAX LIABILITIES |
1.725 |
1.527 |
1.437 |
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TOTAL |
82.475 |
65.270 |
45.810 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
43.974 |
38.061 |
30.023 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
30.555
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25.682 |
16.216 |
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Sundry Debtors |
41.457
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43.370 |
45.338 |
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Cash & Bank Balances |
0.646
|
1.026 |
1.713 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
21.628
|
14.458 |
5.189 |
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Total
Current Assets |
94.286
|
84.536 |
68.456 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
55.785
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57.327 |
52.669 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
55.785
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57.327 |
52.669 |
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Net Current Assets |
38.501
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27.209 |
15.787 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
82.475 |
65.270 |
45.810 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
229.017 |
207.875 |
204.055 |
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Other Income |
0.376 |
8.365 |
2.846 |
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Total Income |
229.393 |
216.240 |
206.901 |
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Profit/(Loss) Before Tax |
5.769 |
14.895 |
10.561 |
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Provision for Taxation |
2.273 |
4.271 |
3.885 |
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Profit/(Loss) After Tax |
3.496 |
10.624 |
6.676 |
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Expenditures : |
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Raw Material Consumed |
166.095 |
152.366 |
152.900 |
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Salaries, Wages, Bonus, etc. |
8.215 |
7.731 |
10.254 |
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Managerial Remuneration |
1.320 |
1.295 |
1.140 |
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Payment to Auditors |
0.085 |
0.136 |
0.085 |
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Interest |
2.199 |
1.068 |
0.510 |
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Insurance Expenses |
0.202 |
0.225 |
0.069 |
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Power & Fuel |
3.006 |
2.752 |
2.131 |
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Depreciation & Amortization |
6.175 |
5.028 |
3.544 |
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Other Expenditure |
36.327 |
30.742 |
25.706 |
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Total Expenditure |
223.624 |
201.343 |
196.339 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
1.52
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4.91 |
3.23 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.03
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7.17 |
5.18 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.17
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12.15 |
10.72 |
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Return on Investment (ROI) (PBT/Networth) |
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0.16
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0.44 |
0.46 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.68
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2.60 |
3.20 |
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Current Ratio (Current Asset/Current Liability) |
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1.69
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1.47 |
1.30 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
IAI INDUSTRIES
LIMITED |
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Presented By |
-- |
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1) Date and description of instrument creating the change |
Goods Security
Agreement dated 15th March 2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Total working
capital facility : Rs. 7.500 Millions Fund based
Facility Rs. 7.500 Millions |
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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 |
First exclusive
charge on all present and future Stocks, Book Debts and plant and machinery
of the company. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Repayable on
demand Cash Credit @
10.00 % p.a. Other interest rates
as per RBI mandated rates specified from time to time. |
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5) Name and Address and description of the person entitled to the charge. |
Citi Bank NA, Jeevan Vihar, 2 Sansad Marg, New Delhi – 110001, India |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U74899DL1995PLC069837 |
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Name of the
company |
IAI INDUSTRIES LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
202 Kusal Bazar, 32-33, Nehru Place, New Delhi – 110019, India |
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Type of charge |
Movable Property |
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Particular of
charge holder |
Citi Bank NA, Jeevan Vihar, 2 Sansad Marg, New Delhi – 110001, India |
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Nature of
description of the instrument creating or modifying the charge |
Term Loan
Agreement |
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Date of
instrument Creating the charge |
20.06.2007 |
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Amount secured by
the charge |
Rs. 22.500
Millions |
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Short particulars
of the property charged |
First Exclusive
charge on all the assets to be procured out of the term loan |
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. |
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UK Pound |
1 |
Rs. |
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Euro |
1 |
Rs. |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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 |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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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 |
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