MIRA
INFORM REPORT
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Report Date : |
06.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
STERLITE TECHNOLOGIES LIMITED |
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Registered Office : |
4E – 1, Waluj MIDC Industrial Area, Waluj District, Aurangabad – 431136,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
24.03.2000 |
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Com. Reg. No.: |
125225 |
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CIN No.: [Company
Identification No.] |
L31300MH2000PLC125225 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKS06442C |
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PAN No.: [Permanent
Account No.] |
AAECS8719B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business : |
Manufacturer of
Optical Fibers, Telecommunication Cables and Power Transmission Conductors. |
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 30000000 |
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Status : |
Good |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a pert of Vedanta Group, a medium sized group-owned and
controlled by Mr. Anil Agarwal and nominees. The company is doing well. The company’s 5 rupees share is quoted at
Rs.50, presently. Trade relations are fair. Payments are reported as slow but
correct. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
4E – 1, Waluj MIDC Industrial Area, Waluj District, Aurangabad – 431136,
Maharashtra, India |
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Tel. No.: |
91-240-2564599 |
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Fax No.: |
91-240-2564598 |
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E-Mail : |
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Website : |
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Corporate Office : |
Atur Chambers, 2A, Moledina Road, Pune – 400001, Maharashtra, India |
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Plant Locations : |
Optical Fiber E2,
E3, MIDC, Waluj, Aurangabad – 431136, India Fiber Optic
Cables Survey No. 68/1, Rakholi
Village, Madhuban Dam Road, Silvassa – 396230 Union Territory of Dadra &
Nagar Haveli, India Copper
Telecom Cables Survey No. 209, Phase 2,
Piparia Industrial Estate, Silvassa – 396240 Union Territory of Dadra &
Nagar Haveli, India Structures
Date Cables Survey No. 33/1/1, Waghdara
Road, Dadra – 396191, Union Territory of Dadra & Nagar Haveli, India Power
Transmission Conductors Survey No. 99, Rakholi Village, Madhuban Dam Road, Silvassa – 396230, Union Territory of Dadra & Nagar Haveli, India PO Karanjwane, Nasarapur Velhe Road, Off Pune Satara Highway, Taluka Velhe, Pune – 412305, India Plot 2D, Sector 10, IIE SIDCUL, Haridwar – 249403, India |
DIRECTORS
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Name : |
Mr. Anil Agarwal |
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Designation : |
Non Executive Chairman
and Managing Director |
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Profile : |
Anil Agarwal founded the Sterlite Group in 1976 and has been overseeing its operations since its inception. Anil is the Executive Chairman of Vedanta Resources Plc, Sterlite Industries (India) Limited, Bharat Aluminium Company Limited (BALCO) and is a Director of Hindustan Zinc Limited (HZL) and Vedanta Alumina Limited. He has over 30 years of experience in business strategy, general management and commercial matters. |
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Name : |
Mr. Navin Agarwal |
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Designation : |
Non Executive Director |
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Date of Birth : |
11.01.1961 |
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Date of Appointment : |
30.07.2003 |
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Profile : |
Navin Agarwal has been overseeing the Sterlite Group's operations since its inception. He is the Deputy Executive Chairman of Vedanta Resources Plc, Executive Vice Chairman of Sterlite Industries (India) Limited, Chairman of Konkola Copper Mines (KCM-Zambia) and MALCO and is also a Director of Bharat Aluminum Company Limited (BALCO), Hindustan Zinc Limited (HZL) and Vedanta Alumina Limited. He has over 20 years of experience in business strategy, general management and commercial matters. |
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Directorship Company : |
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Name : |
Mr. Arun Todarwal |
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Designation : |
Non Executive and Independent Director |
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Date of Birth : |
16.06.1957 |
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Date of Appointment : |
25.01.2003 |
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Profile : |
Arun Todarwal, partner of Todarwal & Todarwal, a Mumbaibased firm of chartered accountants, holds a bachelors degree in commerce and is a member of the Institute of Chartered Accountants of India. He has a rich and varied experience spanning over two decades in finance and audit. |
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Directorship Company : |
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Name : |
Mr. Haigreve Khaitan |
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Designation : |
Non Executive and Independent Director |
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Profile : |
Haigreve Khaitan, partner of Khaitan & Co, a Mumbai-based firm of lawyers, holds a bachelors degree in legislative laws. He has varied experience spanning eight years in commercial and corporate laws, tax laws, mergers and acquisitions, restructuring, foreign collaboration, licensing, etc. |
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Name : |
Mr. Pravin Agarwal |
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Designation : |
Whole Time Director |
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Profile : |
Pravin Agarwal has been closely involved with the Sterlite Group's operations in India since its inception and has been instrumental in growing the telecom and power businesses. His rich experience in general management and commercial matters spans over 25 years. |
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Name : |
Mr. A. R. Narayanaswamy |
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Designation : |
Non Executive and Independent Director |
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Profile : |
A.R. Narayanaswamy is a chartered accountant by profession, Mr. Narayanaswamy has an experience spanning over 30 years. |
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Name : |
Mr. Anand Agarwal |
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Designation : |
CEO and Whole Tine Director |
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Profile : |
Anand Agarwal joined Sterlite in 1995 and has held various positions, including manufacturing, quality assurance and business development. Prior to joining Sterlite, he worked with Siemens. Anand completed his BTech in metallurgical engineering from the IIT Kanpur and was awarded Masters and PhD from the Rensselaer Polytechnic Institute, USA. |
KEY EXECUTIVES
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Name : |
Mr. Sandeep Deshmukh |
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Designation : |
Company Secretary |
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MANAGEMENT COMMITTEE |
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Name : |
Mr. Anand Agarwal |
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Designation : |
Chief Executive Officer |
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Profile : |
Anand Agarwal joined Sterlite in 1995 and has held various positions, including manufacturing, quality assurance and business development. Prior to joining Sterlite, he worked with Siemens. Anand completed his BTech in metallurgical engineering from the IIT Kanpur and was awarded Masters and PhD from the Rensselaer Polytechnic Institute, USA. |
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Name : |
Mr. Anupam Jindal |
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Designation : |
Chief Financial Officer |
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Profile: |
Anupam Jindal joined the Sterlite Group in 1998 and has since then worked with the Group’s aluminium foils and copper telecom cables businesses before heading finance and accounts at Sterlite’s mining operations in Australia. His key focus areas have been finance, treasury, accounts and MIS. Anupam is a chartered account from the Institute of Chartered Accountants of India. |
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Name : |
Mr. Anuraag Rai |
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Designation : |
Vice President, Human Resources |
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Profile: |
Anuraag Rai is responsible for the organisational development and effectiveness. He has been working with the Vedanta Group & Sterlite for over three years. His prior assignments include Suzlon Energy Limited, DELL International, ACC Limited, DCL Polyester Limited, & Eicher Good Earth Limited, Anuraag is a law graduate from Ravi Shankar University in Raipur and holds a masters degree in personnel management from Nagpur University. |
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Name : |
Mr. K. S. Rao |
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Designation : |
Chief Operating Officer – Telecom |
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Profile : |
K.S. Rao joined Sterlite in 1992 and has since held various positions in the Company’s telecom business. His key focus area has been engineering, manufacturing, product development, project management and business development. K.S. Rao holds a bachelors degree in mechanical engineering. |
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Name : |
Mr. Rajendra Mishra |
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Designation : |
Chief Operating Officer – Power |
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Profile: |
Rajendra Mishra joined Sterlite in 2008 and is responsible for the Power business. In a career spanning 18 years, Rajendra has been associated with Batliboi Limited, and RPG Cables in various marketing, sales, operations and strategic positions. He holds a bachelors degree in electrical and electronics engineering from Regional Engineering College, Surathkal. |
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Name : |
Mr. Anil Sikka |
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Designation : |
Associate Vice President, Marketing – Power Transmission Business) |
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Profile : |
Anil Sikka joined Sterlite in 2005 and his key focus areas have been marketing and general management. In a career spanning over 20 years, he has served companies like ABB India and Bahwan Engineering Company in Oman. Mr. Sikka holds a bachelor of technology degree in electrical engineering from the College of Engineering, Rourkee, and has a post-graduate diploma in marketing management from IIT Delhi. |
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Name : |
Mr. Dharmendra Jain |
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Designation : |
(General Manager Finance, Banking and Treasury– Power Transmission Business) |
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Profile: |
Dharmendra Jain joined Sterlite in 1997 and his key focus areas are finance, treasury, taxation, commercial, accounts and MIS. A seasoned professional, having served organisations like Indian Aluminium Cable Limited, (HDC Group), during his 16-year career, Dharmendra holds a degree for chartered accountancy from the Institute of Chartered Accountants of India |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters Group |
29083609 |
45.11 |
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Directors and their relatives |
209522 |
0.33 |
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Life Insurance Corporation |
4258785 |
6.61 |
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Insurance Companies |
243865 |
0.38 |
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Unit Trust of India |
205 |
0.00 |
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Mutual Funds |
3896827 |
6.04 |
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Foreign Institutional Investors |
3825677 |
5.93 |
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NRI/ OCB/ Foreign Body Corporate / Foreign National |
740609 |
1.15 |
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Indian Bodies Corporate |
4986887 |
7.74 |
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Banks |
79796 |
0.12 |
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Government Companies |
170 |
0.00 |
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Individuals (Public) |
17142295 |
26.59 |
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Total |
64468247 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Optical Fibers, Telecommunication Cables and Power Transmission Conductors. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S R Batliboi and Company Chartered Accountant |
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Group Company : |
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Investing Company : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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90000000 |
Equity Shares |
Rs.5/- each |
Rs.450.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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64468247 |
Equity Shares |
Rs.5/- each |
Rs.322.300 Millions |
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Note:
Of the above:
1) 55912559 equity shares of Rs.5/- each were allotted to the shareholders of Sterlite Industries (India) Limited upon demerger pursuant to the scheme of arrangement sanctioned by the Honorable High Court of Judicature at Bombay.
2) During the year 2800000 Share warrants were converted into 2800000 Equity Shares of Rs.5/- each fully paid up. No Warrants are outstanding as on March 31, 2008 with option to exercise equity conversion
3) During the year 73680 shares were issued to employees of the Company under ESOP Scheme.
4) For Stock Options outstanding details Refer Note 10 of
Schedule 21.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2008 |
31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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322.300 |
308.000 |
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2] Share Application Money |
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57.300 |
46.700 |
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3] Reserves & Surplus |
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5015.500 |
3811.600 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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5395.100 |
4166.300 |
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LOAN FUNDS |
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1] Secured Loans |
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6326.500 |
5653.900 |
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2] Unsecured Loans |
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305.400 |
212.700 |
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TOTAL BORROWING |
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6631.900 |
5866.600 |
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DEFERRED TAX LIABILITIES |
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381.300 |
102.500 |
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TOTAL |
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12408.300 |
10135.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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5238.800 |
4344.600 |
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Capital work-in-progress |
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362.200 |
527.600 |
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INVESTMENT |
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60.100 |
63.100 |
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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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2193.900
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1199.900 |
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Sundry Debtors |
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5191.000
|
4332.100 |
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Cash & Bank Balances |
|
890.700
|
789.300 |
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Other Current Assets |
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0.000
|
0.000 |
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Loans & Advances |
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1689.100
|
1043.900 |
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Total
Current Assets |
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9964.700
|
7365.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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3035.300
|
1997.600 |
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Provisions |
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182.200
|
167.500 |
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Total
Current Liabilities |
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3217.500
|
2165.100 |
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Net Current Assets |
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6747.200
|
5200.100 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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12408.300 |
10135.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2008 |
31.03.2007 |
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Sales Turnover |
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16857.900 |
11981.500 |
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Other Income |
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41.100 |
51.900 |
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Total Income |
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16899.000 |
12033.400 |
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Profit/(Loss) Before Tax |
|
1304.400 |
530.400 |
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Provision for Taxation |
|
297.200 |
21.800 |
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Profit/(Loss) After Tax |
|
1007.200 |
508.600 |
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Export Value |
|
8966.600 |
4114.900 |
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Import Value |
|
5180.100 |
2964.400 |
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Expenditures : |
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Manufacturing Expenses |
|
13440.500 |
9955.800 |
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Personal Expenses |
|
418.900 |
298.200 |
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Selling and Distributors |
|
575.300 |
276.200 |
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Administrative Expenses |
|
367.400 |
298.100 |
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Increase/(Decrease) in Finished Goods |
|
(63.200) |
(37.600) |
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Interest |
|
47.500 |
33.400 |
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Depreciation & Amortization |
|
371.700 |
315.700 |
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Other Expenditure |
|
436.500 |
363.200 |
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Total Expenditure |
|
15594.600 |
11503.000 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 1st
Quarter |
30.09.2008 2nd
Quarter |
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Sales Turnover |
|
4041.900 |
6655.600 |
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Other Income |
|
12.900 |
5.100 |
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Total Income |
|
4054.800 |
6660.700 |
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Total Expenditure |
|
3761.400 |
6330.200 |
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Operating Profile |
|
293.400 |
330.500 |
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Interests |
|
87.300 |
147.400 |
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Gross Profit |
|
206.100 |
183.100 |
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Depreciation |
|
105.000 |
108.000 |
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Tax |
|
4.000 |
10.600 |
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Reported PAT |
|
88.000 |
60.800 |
KEY RATIOS
|
PARTICULARS |
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31.03.2008 |
31.03.2007 |
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PAT / Total Income |
(%) |
|
5.96 |
4.23 |
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Net Profit Margin (PBT/Sales) |
(%) |
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7.74 |
4.43 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
8.58 |
4.53 |
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Return on Investment (ROI) (PBT/Networth) |
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|
0.24 |
0.13 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
1.83 |
1.93 |
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Current Ratio (Current Asset/Current Liability) |
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|
3.10 |
3.40 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Sterlite Optical Technologies is a global provider of
Optical Fibers, Telecommunications Cables and Power Transmission Conductors.
The company is the India's only integrated Optical Fiber manufacturer and is among
the select few globally. The company is a Public Limited company, listed on the
Bombay Stock Exchange and National Stock Exchange. In India, Sterlite Optical
Technologies is a significant market leader. The company currently sells its
telecom and power products in over 60 countries.
Sterlite Optical Technologies Limited was incorporated on 24 March 2000 under
the name of Sterlite Telecom Systems Ltd. It was formed after the demerger of
the telecom business from Sterlite Industries (India), with effect from July 1,
2000 to enable sharper focus on each of the businesses. On 21 August 2000, the
Company's name was changed from Sterlite Telecom Systems Limited to Sterlite
Optical Technologies Limited. The company has its manufacturing facilities at
Aurangabad and Pune in Maharashtra Silvassa in Dadra & Nagar Haveli, and
Haridwar in Uttarakhand.
In the year 2004-05, subject a wholly owned subsidiary company merged with the
another wholly owned subsidiary company called Sterlite Telelink Limited. Also
in the same year, the company has launched their three new products which are
especially designed for Access and Premise Network. In the year 2005-06, the
company has launched six new products for Access, Premise &
Fibre-to-the-Home applications.
In the year 2005-2006, the company has increased the installed capacity for
Fiber Optic Cables by 1400000 FKM to 2400000 FKM. Also in the same year, they
stared a new project of producing Broadband Access Network. On July 2006, the
company acquired the Power Transmission Line division from Sterlite Industries
(India) Limited for a consideration of Rs.1485 million. In the same year, the
company's two wholly owned subsidiaries namely Sterlite Telecom Limited and
Sterlite Telelink Limited had merged with the Parent Company.
In the year 2006-2007 the company has increased the installed capacity for
Copper Telecom Cables by 2000000 CKM to 9500000 CKM, for Fiber Optic Cables by
822528 FKM to 3222528 FKM and for Broad band Access Networks they increase the
numbers by 120000 to 720000. Also the company has introduced two new products
namely Sterlite DOF-LITE TM ITU-TG.655 D and E range optical products for
access networks and Sterlite ADSL 2+ wireless and wireline modems for broadband
applications.
Deloitte has nominated Sterlite Optical Technologies as the 6th
Fastest Growing Technologies Company in India. 73rd Fastest Growing
Technology Company in Asia-Pacific in 2006. The company was also among the
winners of Deloitte Technology Fast 50 India & Fast 500 Asia Pacific awards
for 2005.
In the year 2007, the company acquired 58.70% holding in Sterlite
Infrastructure Private Limited and thus it becomes a subsidiary of the Sterlite
Optical Technologies Limited, On July 2007, the company got its present name,
subject. The company has decided to expand the manufacturing capacity of
optical fiber at Aurangabad in Maharashtra to 12 million Km from 6 million Km.
REVENUE:
It is a pleasure to report that the net revenue grew 41% from Rs.11980.000
Millions in 2006-07 to Rs.16860.000 Millions for the year ended March 31,
2008.
- The power transmission business with net revenue of Rs.10500.000
Millions was the major contributor to the Company's net revenue of
Rs.16860.000 Millions.
- The telecom business contributed Rs.6350.000 Millions to the
Company's net revenues.
PROFITABILITY:
The Company's business segments posted a healthy growth in profitability during
the year. New orders generated healthy margins largely due to a judicious
selection of project orders, adherence to a risk management process, improved
product positioning, maintenance of high quality standards and delivery
commitments. Correspondingly, net operating profit after tax strengthened from
Rs.510.000 Millions to Rs.1010.000 Millions as did net profit margin by 173
basis points.
PERFORMANCE:
The Company achieved net revenues of Rs.16860.000 Millions this year which is
41% higher than the revenues for the previous year. The profits of the Company after
providing for tax increased to Rs.1010.000 Millions as compared to the profits
of Rs.510.000 Millions, (after tax credit and exceptional income) in the last
year.
Income from exports increased by 75%, from Rs.2960.000 Millions in the last
year to Rs.5180.000 Millions in the year. Currently the export sales account
for 31% of the net revenues. Export will be the focal point for the Company
from future growth perspective and with that intent, the Company is in the
process of setting up representative offices in USA, and Russia in addition to
the existing offices at China, Thailand, UK and South Africa.
EXPANSION
& DIVERSIFICATION:
The Company is operating in two verticals, which are witnessing significant
growth rates. Also, most of the manufacturing operations of the Company are
utilizing nearly 100% capacity to cater to the increased demand for Power
Conductors and Optical Fiber. The Company has been investing in new capacities
both for green field and brown field expansions.
The Company commenced manufacturing at its new Power Transmission and
Distribution Conductors facility at Haridwar in the State of Uttarakhand in
August 2007. The Company now has a cumulative manufacturing capacity of 115,000
MT (Metric Tonnes), making it the largest manufacturer in India. This facility
includes the latest drawing and stranding machines capable of manufacturing
standard and specialized Power Conductor products. The facility also has a
Rolling Mill capable of producing specialized mechanical alloy. The Company has
plans to enhance the capacity to 160,000 MT during the current year.
The Company also completed the expansion of its Optical Fiber capacity from 4
Million-fkm to 6 Million-fkm. As per CRU, UK, the global demand for Optical
Fiber in 2007 was 127.4 Million-fkm, higher by about 25% compared with the
demand in 2006. This has been the highest annual demand ever for the Optical
Fiber industry. Future projections indicate robust global demand in FTTH
(Fiber-to-the-Home) and a broader mix of telecom applications, including
intercity backbones, metro rings, access network projects and cellular
backhaul.
The Company has now decided to double the Optical Fiber manufacturing capacity
to 12 Million-fkm pa. This brown-field expansion is being done at the Company's
existing facilities at Aurangabad and commercial production is expected to
commence by June 2009. The expanded capacity would primarily cater to the
growing demand from the Indian market and also enable the Company to grow its
global market share. In conjunction with Optical Fiber capacity expansion, the
Company plans to expand its Fiber Optic Cable capacity to 6 Million-fkm from
its current capacity of 2 Million-fkm.
The Company established its Integration & Managed Services (IMS) business
during financial year 2006-07, as its customers required complete telecom
access solutions to be implemented, in addition to their purchases of access
products. As the Company is committed to facilitating the propagation of
broadband in India, it has developed the capability to provide these solutions
for the telecom and broadband sectors.
This year, the Company's IMS business has taken great strides with the
successful implementation of MTNL's MPLS core in New Delhi and Mumbai. Sterlite
also received a contract from MTNL for deployment of a Broadband & Metro
Ethernet network in New Delhi and Mumbai. This is a turnkey project that
involves design, development and implementation of the network. The network,
once completed, would be capable of handling about half a million broadband
connections in these cities.
The Company now serves as a 'one-stop window' for a comprehensive suite of
Telecom and Energy products that would include Optical Fibers, Fiber Optic
Cables, Copper Telecom Cables, Structured Data Cables, Power Transmission and
Distribution Conductors and Integrated Telecom Solutions that include MPLS, NGN
(Next Generation Network), Metro Ethernet Broadband etc.
FIXED ASSETS:
- Freehold Land
- Leasehold Land
- Building
- Plant and Machinery
- Furniture and Fixture
- Data Processing
Equipment
- Electric Fitting
- Vehicles
WEBSITE DETAILS:
CORPORATE PROFILE:
Subject is a global
provider of Optical Fibers, Telecommunication Cables and Power Transmission Conductors.
The Company is India's only integrated Optical Fiber manufacturer and is among
the select few globally.
Subject is a Public
Limited Company, listed on the Bombay Stock Exchange and National Stock
Exchange in India.
Deloitte has
nominated Subject as the 6th Fastest Growing Technology Company in India and
73rd Fastest Growing Technology Company in Asia-Pacific in 2006. The Company
was also among the winners of the 'Deloitte Technology Fast 50 India & Fast
500 Asia Pacific awards for 2005.
Subject’s experience
with the varying requirements of customers in global markets has ensured
continuous improvement and customer orientation of the company. Subject’s
customer list includes some of the most prominent companies in the Telecom and
Energy world.
Subject’s is a
significant market leader. The Company currently sells its telecom and power
products in over 60 countries and currently supplies 4% of the global demand
for Optical Fibers.
Subject’s telecom
products comply with ITU-T recommendations and BS EN 188000, EIA/TIA &
CEI-IEC 60793 Test Standards. Subject’s power transmission products comply with
IS, IEC, BS, ASTM, NFC, Din, AS, JIS & CSA International Specifications.
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] 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.49.79 |
|
UK Pound |
1 |
Rs.73.37 |
|
Euro |
1 |
Rs.63.08 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
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 |
|