MIRA INFORM REPORT
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Report Date : |
23.12.2008 |
IDENTIFICATION DETAILS
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Name : |
INOX LEISURE LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
09.11.1999 |
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CIN No.: |
L92199GJ1999PLC044045 |
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Com. Reg. No.: |
044045 |
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TAN No.: (Tax Deduction & Collection Account No.) |
DELI03037G BLRI01880E MUMI04008E |
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PAN No.: (Permanent Account No.) |
AAACI6063J |
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Legal Form : |
Public limited liability company. The company’s shares are listed on stock exchanges. |
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Line of Business : |
Engaged in the business of setting up and operating a national chain
of world class multiplex cinema theatres under the brand name INOX. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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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 12960000 |
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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. Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-265-2330057-9458 |
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Fax No.: |
91-265-2310312 |
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Corporate Office : |
Address: 21/A Filmcenter, Phone :91-22-66627051 Email :contact@inox.co.in
Address:
Forum, Phone: 23584499 Email: kolkata@inox.co.in Vaishali Nagar Address: Vaibhav Cine Multiplex, C-1,
C-Block, Phone: 91-141-5114483 Email: jaipur@inox.co.in Address : 5th
Floor, Euroamer Garuda Star Mall, Phone:91-80-41128888 Email: bangalore@inox.co.in Nariman Point Address : Phone:
91-22-56595959 Email: mumbai@inox.co.in Address: Plot
No. D, Near Hotel Central Park, Phone: 26050101 Email: pune@inox.co.in Race Address : Opposite
Indraparastha Complex, Near Phone: 2386600 Email: baroda@inox.co.in Address : City
Centre, DC Block I, Sector 1, Kolkata 700020 Phone: 23584499 Email: kolkata@inox.co.in Sapna Sangeeta Address : Sapna
Sangeeta Mall, IDA Scheme 47, Phone: 91-731-4214004 Email: indore@inox.co.in Rink Mall Address : Rink
Mall, 19, Laden Email: darjeeling@inox.co.in Panjim Address: Behind
old Phone: 2420999 Email: goa@inox.co.in |
DIRECTORS
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Name : |
Mr. Deepak Asher |
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Designation : |
Director |
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Name : |
Mr. Pavan Jain |
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Designation : |
Chairman |
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Name : |
Mr. Sundeep S. Bedi |
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Designation : |
Director |
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Name : |
Mr. Vivek Jain |
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Designation : |
Director |
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Name : |
Mr. Siddharth Jain |
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Designation : |
Director |
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Name : |
Mr. Vimal Mittal |
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Designation : |
Director |
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Name : |
Mr. Haigreve Khaitan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Rajesh D. Parte |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Category of |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Bodies Corporate |
39600000 |
66.00 |
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Public shareholding |
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Institutions |
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Financial Institutions / Banks |
25529 |
0.04 |
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Foreign Institutional Investors |
4126813 |
6.88 |
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Non-institutions |
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Bodies Corporate |
6817747 |
11.36 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
4701088 |
7.84 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
3415058 |
5.69 |
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Any Other (specify) |
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Trusts |
1065763 |
1.78 |
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Non Resident Indians |
106857 |
0.18 |
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Clearing member |
141145 |
0.24 |
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GRAND TOTAL |
60000000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Engaged in the business of setting
up and operating a national chain of world class multiplex cinema theatres
under the brand name INOX. |
GENERAL INFORMATION
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Bankers : |
Not Divulged |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Patankar and Associates Chartered Accountants |
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Sister Concern : |
Gujarat Flurochemicals Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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75000000 |
Equity Shares |
Rs.10/- each |
Rs.750.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
61900000 |
Equity Shares |
Rs.10/- each |
Rs.619.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
619.000 |
595.000 |
595.000 |
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2] Employee Stock Options Outstanding |
0.000 |
3.815 |
0.000 |
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3] Reserves & Surplus |
1973.700 |
1734.889 |
1557.182 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2592.700 |
2333.704 |
2152.182 |
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LOAN FUNDS |
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1] Secured Loans |
194.100 |
443.012 |
655.018 |
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2] Unsecured Loans |
236.100 |
322.168 |
434.275 |
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TOTAL BORROWING |
430.200 |
765.180 |
1089.293 |
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DEFERRED TAX LIABILITIES |
0.000 |
127.738 |
107.669 |
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TOTAL |
3022.900 |
3226.622 |
3349.144 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2457.300 |
1822.783 |
1622.656 |
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Capital work-in-progress |
327.300 |
26.452 |
12.498 |
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Advances on Capital Account |
0.000 |
18.199 |
14.005 |
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Pre-operative expenditure pending allocation |
0.000 |
45.934 |
27.543 |
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Intangible Assets |
0.000 |
22.352 |
78.193 |
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INVESTMENT |
325.300 |
1160.617 |
1452.060 |
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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 |
12.200
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8.295 |
4.759 |
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Sundry Debtors |
46.100
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27.913 |
25.344 |
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Cash & Bank Balances |
43.400
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19.946 |
30.310 |
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Other Current Assets |
0.000
|
1.988 |
1.462 |
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Loans & Advances |
345.200
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305.443 |
316.344 |
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Total
Current Assets |
446.900
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363.585 |
378.219 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
420.600
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151.185 |
228.625 |
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Provisions |
113.300
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82.115 |
9.212 |
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Total
Current Liabilities |
533.900
|
233.300 |
237.837 |
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Net Current Assets |
(87.000)
|
130.285 |
140.382 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
1.807 |
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TOTAL |
3022.900 |
3226.622 |
3349.144 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
2062.400 |
1530.134 |
1071.126 |
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Other Income |
115.900 |
83.602 |
19.684 |
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Refund of Entertainment Tax |
0.000 |
11.135 |
0.000 |
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Total Income |
2178.300 |
1624.871 |
1090.810 |
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Profit/(Loss) Before Tax |
364.800 |
323.932 |
249.075 |
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Provision for Taxation |
100.900 |
75.769 |
73.595 |
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Profit/(Loss) After Tax |
263.900 |
248.163 |
175.480 |
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Expenditures : |
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Entertainment Tax |
NA |
119.445 |
50.434 |
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Film Distributors’ Share |
NA |
347.578 |
211.441 |
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Film Distribution Rights and Print Cost
Amortized |
NA |
97.246 |
57.401 |
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Cost of Food and Beverages |
NA |
73.985 |
54.088 |
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Operating and Other Expenses |
NA |
532.064 |
337.726 |
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Interest |
59.900 |
66.571 |
78.901 |
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Depreciation & Amortization |
93.100 |
64.050 |
51.744 |
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Other Expenditure |
1660.500 |
0.000 |
0.000 |
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Total Expenditure |
1813.500 |
1300.939 |
841.735 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 1ST
Quarter |
30.09.2008 2nd
Quarter |
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Sales Turnover |
|
519.200 |
599.700 |
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Other Income |
|
14.500 |
0.500 |
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Total Income |
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533.700 |
600.200 |
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Total Expenditure |
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447.100 |
515.200 |
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Operating Profit |
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86.600 |
85.000 |
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Interest |
|
8.800 |
7.900 |
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Gross Profit |
|
77.800 |
77.100 |
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Depreciation |
|
28.600 |
30.700 |
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Tax |
|
12.400 |
13.700 |
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Reported PAT |
|
36.800 |
32.700 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
12.11
|
15.27 |
16.09 |
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Net Profit Margin (PBT/Sales) |
(%) |
17.69
|
21.17 |
23.25 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
10.26
|
9.36 |
6.95 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.14 |
0.12 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.37
|
0.43 |
0.62 |
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Current Ratio (Current Asset/Current Liability) |
|
0.84
|
1.56 |
1.59 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject is the diversification venture of the INOX group into entertainment
and is a subsidiary of Gujarat Flurochemicals Limited The company is carrying
out the business of setting up, operating and managing a national chain of
world class multiplexes under the brand name 'Inox'. Each Inox multiplex is
situated in premium locations, offering world-class designs and a great
ambience.
Subject was incorporated as a public limited company on November 9,
1999. In short span of time, the company has emerged as a force to reckon with
in the Indian film exhibition business. Also, they established themselves as
being amongst the fastest growing national multiplex chain in the
country.
In the year 2002, the company commenced their operation in their first
four-screen Multiplex at Pune. Also, in the same year, they commenced
four-screen Multiplex at Vadodara. In the year 2004, they commenced their
operations in Kolkata,
In the year 2005, the company commenced their operation in their second
five-screen Multiplex in
During the year 2005-06, the company launched their Multiplexes at
The company is the winner of the 'ICICI Entertainment Retailer of the Year'
Award for the year 2005, TAAL Multiplexer Award in the year 2006 and Emerging
Superbrand of the year 2006 - 07.
In year 2007, the company started their operations in their Multiplexes at
Calcutta Cine Private Limited was amalgamated with the company with effect from
July 18, 2007 and Prime Skyline Developers Private Limited also amalgamated
with the company with effect form March 21, 2008.
ACQUISITION AND FURTHER ISSUE OF SHARES:
Pursuant to the Scheme of Amalgamation ('Scheme') of Calcutta Cine Private
Limited (CCPL) with the Company, as approved by the High Courts of Gujarat and
The Scheme of Amalgamation of Prime Skyline Developers Private Limited (PSDPL)
with the Company was approved by the High Court of judicature at Mumbai vide
its order dated 7th March 2008. The amalgamation of PSDPL with the Company has
become effective on 21st March 2008. All assets and liabilities of erstwhile
PSDPL were transferred to and vested in the Company with effect from the
'Appointed Date' i.e. 1st May 2007. PSDPL was a wholly owned subsidiary of the
Company and hence, no shares were allotted to the shareholders of PSDPL,
pursuant to the Scheme of Amalgamation.
REAPPOINTMENT OF MANAGER:
Mr. Alok Tandon, COO, was appointed as a Manager of the Company pursuant
to the provisions of Section 269 of the Companies Act, 1956 w.e.f. 18th June
2007 till 30th September, 2008. It is proposed to reappoint Mr. Alok Tandon for
a further period of one year with effect from 1st October 2008 to 30th
September, 2009 subject to approval of the Shareholders at ensuing Annual
General Meeting.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING
AND OUTFLOW:
The Company has taken the following energy conservation measures:
* Power factor is being maintained with the use of capacitor banks and
Auto power factor correction meter. These banks are used to neutralize the
inductive current by providing capacitive current. As a result, a power factor
improves and the Company gets rebate as may be applicable on energy bills from
Electricity Distribution Companies. The overall current consumption from the
equipment also reduces which leads to increase life cycle of the equipments like
Motors and heaters.
* Timers are being used to optimize the operational hours of lighting and
other load within the premises. They have started energy conservation meeting
for all the units so as to create awareness about the energy conservation. The
units like Kolkata -
* Successfully installed Variable Frequency Drive (VFD) for Audi AHU
motors at Pune Multiplex which helps them to control the speed of Aircon motor
as per the temperature and the occupancy.
* The operation timing of HVAC system and temperature is controlled with
the help of Building Management System software (BMS) at some of the units of
the Company.
* All operational units have implemented Planned Preventive Maintenance
(PPM) program where the schedule for all the engineering and projection
equipments are chalked out in advance with the PPM chart. A benefit of the PPM
program is to improve the efficiency of the machines and minimizing breakdowns.
As a part of PPM program, the air conditioning system was overhauled and
chemical dosing was used to recover the loss of ageing and reduced capacity. As
a result, the electrical current required for getting the desired result has
reduced.
* All the new fittings are with CFL or energy a saver, which uses less
electrical power as compared to incandescent lamps.
* Introduced movement sensor in toilets and back office area. This sensor
functions upon the physical movement which helps to reduce electrical
energy.
* Auto Voltage Regulator (AVR) is installed at Pune which is maintaining
constant Voltage in the said unit irrespective of any voltage fluctuation form
electricity board. In effect the rate of failure of bulbs, tubes and other
components has been reduced considerable.
* Emphasizing on CFL and LED lamps in existing units and upcoming
projects.
* Installed digital projectors at Bharuch,
The Company continues to use the latest technology for giving high
quality viewing experience to the patrons.
(a)Foreign exchange earnings Nil
(b) Foreign exchange outflow
CIF value of Capital Goods imported 29.570 millions, Traveling Nil Professional
fees 1.551 millions, Conference and Seminar Fees Nil Subscription Nil Total
31.121 millions
MANAGEMENT DISCUSSION AND ANALYSIS
Industry structure and developments
The Indian Media and Entertainment (M and E) industry is poised to enter a
golden era. One of the largest markets in the world, the industry is seeing
strong growth. According to a joint report by industry body the Federation of
Indian Chambers of Commerce and Industry (FICCI) and audit firm Pricewaterhouse
Coopers, in 2007, the M and E industry recorded a growth of 17% over the
previous year, higher than the forecasted growth of 15%. The industry reached
an estimated size of Rs. 513 billion in 2007, up from Rs. 438 billion in 2006.
In the last four years 2004-2007, the industry recorded a cumulative growth of
19% on an overall basis.
Filmed entertainment recorded a steady growth of 14% over the previous year. In
the last four years (2004-2007), the film industry recorded a cumulative growth
of 17% on an overall basis.
The eighth Pricewaterhouse Coopers (PwC) Global Entertainment and Media
Outlook have ranked
The Indian film industry, with over 3 billion admissions per annum, is the
largest in the world, in terms of number of films produced per year. The Indian
film industry is projected to grow by 13% over the next five years, reaching to
Rs. 176 billion in 2012 from the present Rs.96 billion in 2007, nearly double its
present size.
The opening of the film industry to foreign investment coupled with the
granting of industry status to this segment has had a favourable impact,
leading to many global production units entering the country.
Simultaneously, advancements in technology along with a rise in consumer income
and change in consumption patterns have led a massive shift in all spheres of
the film industry production, exhibition, distribution and marketing.
One perceptible change has been the rapid growth of multiplexes, which
meets consumer demand for quality entertainment and has also helped boost
production of niche films targeted at niche audiences. The nation's multiplex
industry is all set for an unprecedented boom buoyed by positive regulatory
changes and booming consumerism.
Opportunities:
The Indian film industry is one of the largest globally with a history of
steady growth:
With films being the most popular form of mass entertainment in India, the film
industry has witnessed robust double-digit growth over the past decade with
domestic box office collections (accounting for 75% of total film industry
revenues) growing at a CAGR of 16% over FY 2005-FY 2008. It is believed that
favorable demographics and lack of affordable alternatives will help the sector
sustain high growth.
Demographic scenario supports long-term fundamentals:
The sector's growth is directly related to the changing demographic profile of
the country.
Significant capex cycle fuelling high growth:
The film industry has recently been given 'industry' status by the government.
This has resulted in ready access to capital (both debt and equity) for
companies to expand across the film and entertainment value chains
Multiplexes set to dominate film exhibition space over the next decade:
Films are the most affordable and popular out-of-home entertainment
medium in
Integration across value chain and changing business mix creating additional
value:
On the back of high growth witnessed in the sector, film exhibition companies
are increasingly looking for opportunities to vertically integrate across the
film industry value chain (production, distribution and exhibition) and
diversify their business mix into other entertainment-related revenue
generating avenues such as food courts, gaming, advertising etc.
Film exhibition companies are relatively well placed to benefit from this
potential integration scenario for two reasons: 1) they form the direct point
of contact with the end consumer (visiting patron), giving them advantage over
other participants in the value chain; and 2) given India's current under
penetration in multiplexes, new developments and expansions will continue to
remain profitable for these companies. This is in contrast to mature markets
such as the
Adoption of digital technology:
The film exhibition industry is in the initial stages of conversion from film-based
to digital projection technology. Virtually all film entertainment content
today can be exhibited digitally. Digital projection results in a premium
visual experience for patrons as there is no degradation of image over the life
of a film. Digital content also gives the theatre operator greater flexibility
in programming content. For example, theatre operators are able to better
address capacity utilization and meet the demand in their theatres by making
real-time decisions on the number and size of auditoriums to program with
particular content. Moreover, digital technology provides theatres with the
opportunity for additional revenues through digital output and alternative
content offerings. The recent experience with the digital initiative has been
positive with increased attendance and rising average ticket prices.
Importance of film exhibition industry to content providers:
They believe that the box office success of a motion picture is often the key
determinant in establishing its value in the other parts of value chain, such
as DVD, cable television, merchandising and other ancillary markets. As a
result, they believe motion picture studios will continue to work in tandem
with film exhibitors to improve the revenue extraction from the limited
theatrical window - first week collections account for increasingly higher
proportion of total collections.
Segment wise analysis: Multiplexes / Exhibition
Total revenue from theatrical exhibition segment during the financial year
ended 31st March 2008 amounted to Rs.2048.300 millions. The profit from this
Segment was Rs. 315.600 millions for the financial year ended 31st March 2008.
The increase in total revenue from this segment is attributed to commencement
of operations of new properties across the country. As on date, the Company has
24 multiplexes, 84 screens in 18 cities across
Distribution
Total revenue from Distribution during the financial year ended 31st March 2008
amounted to Rs.61.700 millions. However, the Company suffered a loss to the
tune of Rs.3.200 millions for the financial year ended 31st March 2008. INOX
forayed into distribution a little over 2 years ago by leveraging its
exhibition strength in
Power
The Company has set up wind mills in the State of
Internal control systems and their adequacy
The Company has a proper and adequate system of internal controls commensurate
with its size and nature of operations to provide reasonable assurance that all
assets are safeguarded, transactions are authorized, recorded and reported
properly and applicable statues, codes of conducts and corporate policies are
duly complied with.
The Audit Committee reviews the reports submitted by the Internal Auditors and
monitors follow-up and corrective action by Management.
FIXED ASSETS:
- Freehold
Lands
- Buildings
- Plant and
Machinery
- Office
Equipments
- Computers
- Furniture and
Fixtures
- Vehicles
PRESS RELEASES:
INOX Leisure Limited Q2 Revenues Touch 580
millions Records 45% Revenue Growth In Q2 07-08
Mumbai, 22 Oct '07
INOX Leisure Limited
Q2 Revenues Touch 58 millions Records 45% Revenue Growth In Q2 07-08
Financial Highlights:
- Total Revenues for Q3 grow 42% from Rs.428.300 millions to Rs.608.100 millions YOY
- EBITDA for Q3 grows 36% from Rs.101.300 millions to Rs.137.400 millions YOY
- PAT for Q3 grows 30% from to Rs.48.300 millions to Rs.62.900 millions YOY
- Operational Highlights:
- Properties under operation up from 12 to 22
- Screens under operation up from 44 to 76
- Seats under operation up 73.42% from 13377 to 23199
- Footfalls up by 39% from 2503234 to 3477901
Mumbai, 22 January 2007: The Board of Directors of INOX Leisure Limited
(ILL) announced its results for the third quarter of the financial year
2007-2008, following its Board Meeting on Tuesday, 22 January 2008 at Mumbai.
For the quarter ended 31st December 2007, ILL reported a PAT (Profit after Tax)
of Rs.62.900 millions as compared to Rs.48.300 millions in the corresponding
quarter of the previous year – an increase of 30%.
Total Income rose 42% for the quarter; up from Rs.428.300 millions to
Rs.608.100 millions. INOX registered an EBITDA of Rs.137.400 millions compared
to Rs.101.300 millions in the same quarter of the previous year, a growth of
36%. Sales were up by 41.50% to 598.000 millions in Q3 07-08 versus Rs.422.600
millions in Q3 06-07.
INOX has achieved significant operational milestones this quarter with its
total number of multiplexes up to 22 from 12, footfalls up 28% to 3477901 from
2503234; its seats under operation are up 73.42% to 23199 from 13377 as
compared to the corresponding quarter in 2006-2007.
The company’s high growth trajectory is reflected in the fact that its
revenues of Rs.1749.700 millions for the nine-month period ending December have
already exceeded fiscal 07’s annual revenue of Rs.1624.800 millions. INOX has
registered strong growth over the nine-month period with sales up 40% from
Rs.1169.400 millions to Rs.1640.400 millions.
For further information, please contact:
Snehhal Chitneni
GM – Brand and Corporate Communications
INOX Leisure Limited
Ph: 9322091010
CMT REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.88 |
|
|
1 |
Rs.83.07 |
|
Euro |
1 |
Rs.56.94 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|