MIRA
INFORM REPORT
|
Report Date : |
30.12.2008 |
IDENTIFICATION DETAILS
|
Name : |
GUJARAT STATE PETRONET LIMITED |
|
|
|
|
Registered Office : |
GSPC Bhavan, Behind Udyog Bhavan, Sector – 11, Gandhi Nagar – 382 011,
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
23.12.1998 |
|
|
|
|
Com. Reg. No.: |
35188 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L40200GJ1998SGC035188 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
AHMG01428A |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AABCG1812E |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company shares are listed on the
stock exchange. |
|
|
|
|
Line of Business : |
Ensure systematic and
integrated development of future gas transmission business and to avoid
duplication and haphazard development.
Its operation involves a diverse set of actions right from concept to
commissioning. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 57000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having satisfactory track
records. The company is doing well. It’s payments are usually correct and as
per commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
GSPC Bhavan, Behind Udyog Bhavan, Sector – 11, Gandhi Nagar – 382 011,
|
|
Tel. No.: |
91-79- 66701001 /
66701303/04 |
|
Fax No.: |
91-79-23236375 / 23236477 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mr. D Rajagopalan, IAS |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mrs. V L Joshi, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H K Dash, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P K Pujari, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Hasmukh Ashia, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tapan Ray, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N J Jhaveri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. U Sundararajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Suresh Mathur |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Luis Miranda |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N Venkiteswaran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D J Pandian, IAS |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Balwant Singh, IAS |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. Sandeep Dave |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 30.06.2008)
|
Category |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
Shareholding of Promoter and Promoter Group |
|
|
|
Indian |
|
|
|
Individuals/Hindu Undivided Family |
60 |
0.00 |
|
Bodies Corporate |
212305210 |
37.77 |
|
|
|
|
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/UTI |
27216360 |
4.84 |
|
Financial Institutions/ Banks |
19453829 |
3.46 |
|
Central Government/ State Government(s) |
61938000 |
11.02 |
|
Venture Capital Funds |
14166854 |
2.52 |
|
Insurance Companies |
6159536 |
1.10 |
|
Foreign Institutional Investors |
77224226 |
13.74 |
|
|
|
|
|
Non-institutions |
|
|
|
Bodies Corporate |
41503409 |
7.38 |
|
Individuals |
|
|
|
I. Individual shareholders holding nominal share capital up to Rs. 1
lakh. |
73038064 |
13.00 |
|
II. Individual shareholders holding nominal share capital in excess of
Rs. 1 lakh. |
8068098 |
1.44 |
|
Any Other |
|
|
|
- Non resident Indians |
1458245 |
0.26 |
|
- Trust |
7338 |
0.00 |
|
- Clearing Members |
749473 |
0.13 |
|
- OCB’s |
5700 |
0.00 |
|
- Foreign Corporate Bodies |
18738000 |
3.33 |
|
|
|
|
|
GRAND TOTAL |
562032402 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Ensure systematic and
integrated development of future gas transmission business and to avoid
duplication and haphazard development.
Its operation involves a diverse set of actions right from concept to
commissioning. |
GENERAL INFORMATION
|
Customers : |
·
Essar Steel Limited ·
Gujarat State Energy Generation Limited ·
The Arvind Mills Limited ·
Gujarat Gas Company Limited ·
Videocon Narmada Glass Company Limited ·
Gujarat Industrial Power Company Limited ·
Torrent Power AEC Limited ·
Adani Energy ( ·
GSPC Gas Private Limited ·
City Tiles Limited ·
Hazira LNG Private Limited ·
Sabarmati Gas Company Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
Allahabad Bank ·
Bank of ·
Bank of ·
Corporation Bank ·
Dena Bank ·
HDFC Bank Limited ·
IDBI Limited ·
The Karur Vysya Bank Limited ·
Oriental Bank of Commerce ·
The South Indian Bank Limited ·
State Bank of ·
State Bank of ·
State Bank of Travancore ·
Axis Bank Limited ·
Central Bank of ·
IDBI Bank Limited ·
Punjab National Bank of ·
UCO Bank ·
Canara Bank ·
Banque National De Paris, (BNP) ·
Union Bank of ·
Vijaya Bank ·
Industrial Development Bank Of India Limited ·
State Bank Of Saurashtra |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
- |
|
|
|
|
Auditors : |
|
|
Name : |
T N Shah and Company Chartered Accountant |
|
Address : |
Gandhinagar |
|
|
|
|
Internal
Auditors : |
KPMG, Mumbai |
|
|
|
|
Associates/Subsidiaries : |
·
Gujarat State
Petroleum Corporation ·
Gujarat Industries
Development Corporation ·
·
Gujarat State Energy Generation Limited ·
Guj Info Petro Limited ·
GSPC Gas Company Limited ·
Sabarmati Gas Limited |
|
|
|
|
Parent company : |
Gujarat State Petroleum
Corporation Limited |
|
|
|
|
Holding Company
: |
Gujarat State Petroleum Corporation Limited |
CAPITAL STRUCTURE
(As on 31.03.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
700000000 |
Equity Shares |
Rs.10/- each |
Rs.7000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
562006694 |
Equity Shares |
Rs.10/- each |
Rs.5620.067
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
5620.067 |
5428.035 |
5422.433 |
|
|
2] Share Application Money |
0.000 |
0.064 |
0.000 |
|
|
3] Reserves & Surplus |
5789.496 |
4231.102 |
3652.569 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11409.563 |
9659.201 |
9075.002 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9650.445 |
8638.334 |
5701.533 |
|
|
2] Unsecured Loans |
10.000 |
0.000 |
84.717 |
|
|
TOTAL BORROWING |
9660.445 |
8638.334 |
5786.250 |
|
|
DEFERRED TAX LIABILITIES |
1001.544 |
918.507 |
784.075 |
|
|
|
|
|
|
|
|
TOTAL |
22071.552 |
19216.042 |
15645.330 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15371.270 |
15660.879 |
7599.876 |
|
|
Capital work-in-progress |
5887.926 |
1367.803 |
6050.667 |
|
|
|
|
|
|
|
|
INVESTMENT |
355.750 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
2.513 |
1.569 |
275.730 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
416.212
|
349.133 |
137.014 |
|
|
Cash & Bank Balances |
2569.296
|
1811.162 |
2372.036 |
|
|
Other Current Assets |
564.409
|
197.106 |
149.325 |
|
|
Loans & Advances |
1549.818
|
1108.499 |
346.748 |
|
|
Stores & Spare Parts |
397.083
|
441.864 |
361.519 |
|
Total
Current Assets |
5496.818
|
3907.764 |
3366.642 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
4199.212
|
1323.627 |
1554.242 |
|
|
Provisions |
906.832
|
491.592 |
216.519 |
|
Total
Current Liabilities |
5106.044
|
1815.219 |
1770.761 |
|
|
Net Current Assets |
390.774
|
2092.545 |
1595.881 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
63.319 |
93.246 |
123.173 |
|
|
|
|
|
|
|
|
TOTAL |
22071.552 |
19216.042 |
15645.330 |
|
PROFIT & LOSS
ACCOUNT
|
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Income From
Transportation of Gas |
4178.949 |
3175.612 |
2634.669 |
|
|
Interest income |
255.766 |
145.933 |
40.455 |
|
|
Other Income |
38.073 |
28.616 |
4.221 |
|
|
Total Income |
4472.788 |
3350.161 |
2679.345 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1491.491 |
1372.579 |
784.079 |
|
|
Provision for Taxation |
492.318 |
478.760 |
317.296 |
|
|
Profit/(Loss) After Tax |
999.173 |
893.819 |
466.783 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Employee Cost |
76.331 |
39.690 |
26.711 |
|
|
Gas transportation Charges |
14.488 |
71.976 |
192.262 |
|
|
Connectivity Charges |
112.195 |
130.616 |
221.518 |
|
|
Administrative and Other Expenses |
171.963 |
144.227 |
113.553 |
|
|
Operation and Maintenance Expenses |
159.210 |
111.897 |
139.095 |
|
|
Interest and Financial Charges |
815.138 |
456.536 |
412.132 |
|
|
Depreciation and
Amortization |
1632.186 |
1026.079 |
790.577 |
|
|
Prior Period Adjustments |
(0.214) |
(3.439) |
(0.582) |
|
Total Expenditure |
2981.297 |
1977.582 |
1895.266 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
30.09.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Sales
Turnover |
1194.900 |
1185.900 |
|
Other
Income |
68.000 |
72.400 |
|
Total
Income |
1262.900 |
1258.300 |
|
Total
Expenditure |
119.300 |
161.700 |
|
Operating
Profit |
1143.600 |
1096.600 |
|
Interest |
218.100 |
230.800 |
|
Gross
Profit |
925.500 |
865.800 |
|
Depreciation |
414.600 |
422.700 |
|
Tax |
164.200 |
143.200 |
|
Reported
PAT |
326.400 |
283.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
22.33
|
26.68 |
17.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
35.69
|
43.22 |
29.76 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.15
|
7.01 |
7.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.14 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.29
|
1.08 |
0.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.08
|
2.15 |
1.90 |
LOCAL AGENCY FURTHER INFORMATION
MAJOR
ACHIEVEMENTS:
The year was marked by several accomplishments, both in terms of physical and financial
performance. The company has maintained an upward trend in all performance
parameters as follows,
·
Turnover increased from Rs.3350.100
millions to Rs.4472.800 millions in previous year, recording increase of
34%.
·
EBIDTA increased from Rs.2851.700
millions to Rs.3938.600 millions in previous year, recording increase of
38%.
·
PAT increased from Rs.893.700 millions
to Rs.999.200 millions in previous year, recording increase of 12%.
·
100% pipeline grid availability and
'accident free' year of operations.
·
Finalized Equity and Term Loan tie-up
with International Finance Corporation (IFC) for approx. Rs.4450
millions.
·
Enhanced strategic equity stake in City
Gas Distribution Network being developed in the State of
CAPITAL:
During the year, paid up share capital of the Company has increased from
Rs.5428.000 millions to Rs.5620.100 millions on account of allotment of shares
on preferential basis to IFC and also to eligible employees under the ESOP
Scheme.
DIVIDEND:
Keeping in view the fund requirements for expansion projects, the Board of
Directors of the Company is pleased to recommend dividend @ 5% for the
Financial Year 2007-08.
GAS
TRANSMISSION SERVICES:
The Company has signed firm GTAs for transporting 30.33 MMSCMD (Previous year
32.13 MMSCMD) of gas to various customers and interruptible GTAs for 6.69
MMSMCD.
GAS GRID PROJECT:
The Government of Gujarat has always played a proactive role in the development
of energy value chain.
The pipeline grid has been designed as per the highest international standards
with inbuilt flexibility to cater to varying loads.
Projects commissioned:
Since last Directors' Report the Company has successfully commissioned various
pipeline projects like Atul Spur, Palej Spur, NTPC Jhanore Pipeline, etc.
The current span of the Grid under operation is approx. 1130 kms and gas is
flowing from Hazira / Dahej to various industries and City Gas Distribution
Networks located in
Projects
on Hand:
The Directors are pleased to inform that the Company continues to develop
pipeline infrastructure in the State of
·
Rajkot-Vadinar Pipeline Project (30'x
110 km)* Bhadbut-Gana Pipeline Project (30'x 109 km)* Gana-Hadala
·
Pipeline Project (30' x 85 km)*
Petronet LNG Connectivity (24'x .035 km)
·
Morbi - Mundra Pipeline Project (18' x
130 km)*
·
Suzlon Spurline (8' x 28 km)
·
IPCL Connectivity (12' x 3.5 km)
·
ONGC - Olpad (12' x 5 km)
·
IOCL Connectivity (12' x 5 km)
·
Olpad - GSEC Utran Pipeline Project
(12' x 15 km)
Further, the Company also continues to develop several Spur lines to connect
Industrial clusters and medium size customers along the pipeline network, which
include regions like Vapi, Morbi, Mehsana and
Future Plans:
The Company is working on future expansion plans. The pipelines, which may be
taken up for implementation in future include:
Darod - Jafrabad Pipeline Project (30' x 205 km)
Spurline to EOL, Refinery (24' x 8 km)
Dahej Network Pipeline Project (12' x 45 km)
Spurline to Vilayat GIDC (12' x 15 km)
Tarapur - Isharvada (8' x 15 km)
Mehsana - Palanpur (18' x 75 km)
Further the Company has also initiated activities for expanding the pipeline
network beyond the State of
Operation and Maintenance
activities:
The Company has transported 6144.92 MMSCM (Previous year: 5246.46 MMSCM) of gas
during the Financial Year.
To safeguard Pipeline assets and optimize efficiency of the pipeline system,
the Company is giving utmost importance to efficient operations and preventive
maintenance.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
Global energy demand grows despite the substantial increase in oil and natural
gas prices that are projected to persist in mid term outlook. Natural gas has
emerged as the most preferred fuel due to its inherent environmentally benign
nature, greater efficiency and cost effectiveness. The demand for natural gas
is growing faster than any fossil fuel.
Global Natural gas consumption is projected to increase from about 100 trillion
cubic feet in 2004 to 163 trillion cubic feet in 2030 @ 1.9% per year.
The Asian gas markets are leading the growth in global gas sector, with
specific investment focus on countries like
There is shortage of natural gas in
·
Constitution of Regulatory Board under the PNGRB
Act.
·
Expansion of capacity of LNG Terminal by Petronet
LNG and commencement of work for setting up LNG Terminal in
·
Expansion of capacity of LNG Terminal by Hazira
LNG.
·
Procurement of spot cargoes at prevailing global
LNG prices along with significant volume expansion has improved the visibility
of
·
Noticeable increase in development activities for
setting up cross country transmission pipelines / City Gas Distribution (CGD)
Networks in & across various states in
·
As per CRISIL report, natural gas demand in the State is expected to increase
from 54.1 mmscmd in 2005 to 94.5 mmscmd by 2010. This is mainly due to the fact
that many industries are switching over to gas for their fuel and feedstock
requirements. The expansion of the gas grid into new markets has resulted in
substantial increase in the demand for gas through expansion of capacities of
existing projects, setting up of new Industries and development of CGD networks
in
Keeping in view the demand potential of natural gas, the Company has built in
additional capacity in its pipeline network to cater to the future demand. The
Company will be benefited by transmission of additional volumes available on
account of increase in supply of natural gas in the state.
OPPORTUNITIES AND
CHALLENGES:
The Company is well poised to take full advantage of the new opportunities
arising out of the above developments in the gas industry.
The Company owns and operates the second largest natural gas transmission
network in
The Company has enhanced its equity investment in GSPC Gas Company Limited and
Sabarmati Gas Limited which are developing CGD Network in the State of
OUTLOOK:
There is a huge unsatisfied demand for natural gas and the Company believes
that the domestic gas/LNG would flow in to meet the unsatisfied demand. The
power and fertilizer sectors will drive the growth in demand in the state as
well as in the country. The industrial clusters and the domestic distribution
networks would also boost the demand for gas.
The Company recognizes the growing importance of natural gas as an environment
friendly fuel to industry as well as to domestic and transport sectors. The
Company believes that natural gas will continue to be a favoured fuel and
feedstock because of economic and environmental advantages over alternative
fuels.
OPERATIONS AND
FINANCIAL PERFORMANCE:
The Company has managed to achieve fast track growth in a short period of time
with a lean manpower strength on account of its well thought out strategy of
developing pipeline projects on EPC (Engineering, Procurement and Construction)
Model. EPC Model adopted by the Company envisages development of projects at a
lump sum fixed price within a given time frame. Further, Net Worth of the
Company has increased from Rs.9565.900 millions to Rs.11673.300 millions as
compared to previous year. Gross Block of Assets has increased from Rs.
18889.200 millions to Rs.20190.500 millions and consequently there has been an
increase in depreciation from Rs. 1026.100 millions to Rs.1632.200
millions.
The Company had raised Rs.1073.500 millions through preferential allotment to
International Finance Corporation during the year and has utilised the entire
amount till 31.03.2008 for projects payments. Further there was no deviation in
the purpose for which the funds have been raised and the utilization of the
funds.
FIXED ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Communi Equipments
·
Computers
·
Furniture and Fittings
·
Office Equipments
·
Vehicles
WEB DETAILS
History
Gujarat is one of the highly industrialized states
in
GSPC identified
Subject's primary objective is to connect
various supply sources and users of natural gas in
Subject commenced transporting natural gas following
completion of the first segment of network in November 2000. Currently Subject
operates a medium-to-high pressure gas transmission grid comprising
approximately 1130 km of natural gas pipeline from Hazira to Kalol.
Industry Overview
Natural gas is a colorless, odorless, naturally occurring gaseous mixture of hydrocarbon components. Natural gas is used in a variety of applications, such as feedstock in fertilizer in the petrochemical industry and as fuel in the power generation manufacturing of steel, textile, ceramic, glass and other industrial products. As a fuel, natural gas competes with a range of alternative products such as coal and lignite as well as petroleum products such as liquefied petroleum gas, naphtha, high speed diesel, light diesel oil and fuel oil. However, due to lower fuel, operating costs and better combustion characteristics, natural gas has distinct economic advantages over other sources of energy. In addition, natural gas has substantial environmental advantages over other energy sources, due to lower emissions.
Worldwide, the percentage of global primary energy consumption of natural
gas rose from 19% in 1980 to 24% in 2002. High growth in demand of natural gas
is expected to occur in developing countries at a rate of 3.9% per year between
2001 and 2025. The Indian natural gas market is relatively underdeveloped
compared to other regions of the world. By the years 2024 to 2025, the share of
natural gas would increase to 20% of total primary energy consumption,
according to Hydrocarbon Vision 2025.
Gas Transmission Network
Subject, a GSPC Group company is a pioneer in developing energy
transportation infrastructure and connecting natural gas supply basins and LNG
terminals to growing markets. Subject is continuously expanding its pipeline
network in
Open Access
Subject is first Pipeline Company in
The transmission network of the company envisages development of
systematic and seamless pipeline network across
Highlights of Gas Grid Project
·
130 kms of gas pipeline in
operation from
Hazira-Vadodara-Ahmedabad-Kalol-Himmatnagar-Mehsana-Rajkot-Morbi-Vapi.
Transports more than 16 MMSCMD of gas currently, including more than 8 MMSCMD
of R-LNG.
·
425 kms of gas pipeline under
execution.
·
Advanced engineering practices that
provide efficient natural gas transportation
·
More than Rs. 2,0000 millions
investment already made.
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.48.76 |
|
|
1 |
Rs.71.68 |
|
Euro |
1 |
Rs.69.17 |
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 |
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 |
NO |
|
--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 |
|