MIRA
INFORM REPORT
|
Report Date : |
10.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TEMPTATION FOODS LIMITED |
|
|
|
|
Registered Office : |
4, Unity House, 2nd Floor, 8, Mama Paramanand Marg, Opera House,
Mumabi-400004, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
06.03.1991 |
|
|
|
|
Com. Reg. No.: |
11-60643 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L99999MH1991PLC060643 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT06581B |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. Company’s shares are listed on Stock Exchanges. |
|
|
|
|
Line of Business : |
Suppliers of Frozen
Foods |
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 10000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having satisfactory
track. Financial position is satisfactory. Payments are correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
4, Unity House, 2nd Floor, 8, Mama Paramanand Marg, Opera
House, Mumabi-400004, Maharashtra, India |
|
Tel. No.: |
91-22-23686030 |
|
Fax No.: |
91-22-23695438 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Plot No.C-2,
MIDC, Jejuri, Taluka Purandar, District Pune-412302, Maharashtra, India |
|
Tel. No.: |
91-2115-253372/253610/254166 |
|
Fax No.: |
91-2115-253610 |
|
|
|
|
Factory 2 : |
Village and Post Office Rathdhana, Sonipat Jatheri Road, Sonipat,
Haryana-131001, India |
|
|
|
|
Factory 2 : |
136, K. M. Stone, G.T. Road, Village and Post Office Shamgarh, Karnal,
Haryana-132116, India |
DIRECTORS
|
Name : |
Dr. Kala Pant |
|
Designation : |
Director |
|
Date of Birth/Age : |
71 years |
|
Qualification : |
Bachelor of
Science, Post Graduate Doctoral Research in the field of Banking and
Transport. |
|
Other Directorship: |
Chairman and Member
of Audit committee of N.R.B. Bearings Limited |
|
|
|
|
Name : |
Mr. R.V. Joshi |
|
Designation : |
Director |
|
Date of Birth/Age : |
64 years |
|
Qualification : |
M.A. (Economics) |
|
Other Directorship: |
Clear Corp
Dealing Systems India Limited |
|
|
|
|
Name : |
Mr. G.
Ramchandran |
|
Designation : |
Director |
|
Date of Birth/Age : |
46 years |
|
Qualification : |
Bachelor of
Science and Chartered Accountant |
|
Other Directorship: |
|
|
|
|
|
Name : |
Mr. E. David
Ellington |
|
Designation : |
Director |
|
Date of Birth/Age : |
46 years |
|
Qualification : |
M.A. from Harvard
University |
|
Other Directorship: |
Ankar Capital
LLC, USA and San Francisco Retirement Board - Trustee |
|
|
|
|
Name : |
Ms. Bhairavi
Goswami |
|
Designation : |
Director |
|
Date of Birth/Age : |
24 years |
|
Qualification : |
B.A. |
|
Experience : |
3 years |
|
Other Directorship: |
Venture Business
Advisers Private Limited Vergola India
Limited |
|
|
|
|
Name : |
Mr. Ragvinder
Singh Rethi |
|
Designation : |
Director |
|
Date of Birth/Age : |
56 years |
|
Qualification : |
Bachelor of
Science in Hotel Administration from Cornell University, New York |
|
Other Directorship: |
Radhakrishna
Foodland Private Limited |
|
|
|
|
Name : |
Ms. Elizabeth Harrington |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vinit Kumar |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. Ulhas Joshi |
|
Designation : |
Chief Operating
Officer |
|
|
|
|
Name : |
Mr. N. H.
Datanwala |
|
Designation : |
Chief Financial
Officer and Company Secretary |
|
|
|
|
Name : |
Mr. Raj Halve |
|
Designation : |
President – Brands |
|
|
|
|
Name : |
Mr. Vipin Chandok |
|
Designation : |
Manager Acquisitions |
|
|
|
|
Name : |
Mr. Shyam Jangid |
|
Designation : |
President- Banking and Accounts |
|
|
|
|
Name : |
Mr. Shyam Mahale |
|
Designation : |
President – Corporate Planning |
|
|
|
|
Name : |
Mr. Sreekumar Banerjee |
|
Designation : |
Chief Information Officer |
|
|
|
|
Name : |
Mr. Nimish Thakore |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter Group |
9492662 |
37.73 |
|
Foreign Institutional Investors |
8601952 |
34.21 |
|
Indian Mutual Funds |
2625000 |
10.44 |
|
Nonresident Indians |
1750 |
0.01 |
|
Indian Public (Including Bodies Corporate) |
4403898 |
17.51 |
|
Total |
25125262 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Suppliers of
Frozen Foods |
||||||||
|
|
|
||||||||
|
Products : |
v
IQF Deep
Frozen Fruits v
Block Frozen
Fruit Purees v
IQF Deep
Froz v
IQF Deep
Frozen Ethnic Indian Vegetable v
Frozen Ready
to Serve Meals
|
GENERAL
INFORMATION
|
Customer: |
|
||||||||||||||||
|
|
|
||||||||||||||||
|
Bankers : |
v
ICICI Bank
Limited v
Bank of
Baroda |
||||||||||||||||
|
|
|
||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations
: |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Sharp and Tannan (Statutory Auditors) Chartered Accountant |
|
Address : |
Ravindra Annex, 194, Churchagate Reclamation, Dinshaw Vachha Road,
Mumabi-400020, Maharashtra, India |
|
|
|
|
Name : |
R. G. Mehta and Company (Internal Auditor) Chartered Accountant |
|
Address : |
4, Shiv Chayya, Opposite Hotel Arasa, Sir M.V. Road, Andheri (East),
Mumbai-400069, Maharashtra, India |
|
|
|
|
Name : |
Haribhakti and
Company Chartered
Accountants |
|
|
|
|
Holding Company : |
Venture Business
Advisors Private Limited |
|
|
|
|
Associates/Subsidiaries : |
v Micro Plantae Limited v Vergola India Limited v Delika Foods Private Limited v Calypso Agro & Engineering Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/- each |
Rs. 300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25142100 |
Equity Shares |
Rs. 10/-
each |
Rs. 251.421
Millions |
Of the Above
9481862 (Previous Year 9481862) Equity Shares
constituting 37.76% (Previous year 56.05%) of the paid-up capital are held by
Venture Business Advisors Private Limited
(Previous year, the holding company)
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 |
251.421 |
169.171 |
84.815 |
|
|
2] Share Application Money |
204.563 |
5.850 |
103.750 |
|
|
3] Reserves & Surplus |
1575.573 |
200.889 |
76.846 |
|
|
4] (Accumulated Losses) |
0.000 |
[65.883] |
(123.431) |
|
|
NETWORTH |
2031.557 |
310.027 |
141.980 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2.383 |
0.000 |
0.100 |
|
|
2] Unsecured Loans |
0.368 |
0.446 |
0.086 |
|
|
TOTAL BORROWING |
2.751 |
0.446 |
0.186 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2034.308 |
310.473 |
142.166 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
712.949 |
155.659 |
69.106 |
|
|
Capital work-in-progress |
12.828 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1.855 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
1.355 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
330.172
|
40.042 |
28.664 |
|
|
Sundry Debtors |
703.189
|
124.336 |
43.999 |
|
|
Cash & Bank Balances |
12.881
|
2.103 |
32.618 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
610.480
|
15.353 |
4.972 |
|
Total
Current Assets |
1656.722
|
181.834 |
110.253 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
307.505
|
26.012 |
36.574 |
|
|
Provisions |
43.896
|
1.008 |
0.619 |
|
Total
Current Liabilities |
351.401
|
27.020 |
37.193 |
|
|
Net Current Assets |
1305.321
|
154.814 |
73.060 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2034.308 |
310.473 |
142.166 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
|
Sales Turnover |
3280.476 |
388.489 |
165.667 |
|
|
Other Income |
16.899 |
8.102 |
0.000 |
|
|
Total Income |
3297.375 |
396.591 |
165.667 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
273.598 |
63.114 |
17.355 |
|
|
Provision for Taxation |
35.542 |
5.483 |
0.988 |
|
|
Profit/(Loss) After Tax |
238.056 |
57.631 |
16.367 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Exports of Fresh and Frozen Foods (FOB
basis) |
305.117 |
48.500 |
37.854 |
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
3028.461 |
296.539 |
|
|
|
Administrative Expenses |
87.233 |
30.110 |
|
|
|
Selling and Distribution Expenses |
43.112 |
10.830 |
148.312 |
|
|
Increase/(Decrease) in Finished Goods |
[184.019] |
[11.574] |
|
|
|
Interest and Finance Expenses |
3.063 |
0.326 |
|
|
|
Depreciation & Amortization |
45.927 |
7.246 |
|
|
Total Expenditure |
3023.777 |
333.477 |
148.312 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
3.12 |
1.68 |
0.82 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
6.91 |
2.43 |
1.00 |
|
Inventory |
17.72 |
11.31 |
5.03 |
|
Debtors |
7.93 |
4.62 |
6.35 |
|
Interest Cover Ratio |
89.26 |
194.00 |
56.00 |
|
Operating Profit Margin(%) |
9.83 |
16.86 |
15.39 |
|
Profit Before Interest and Tax Margin(%) |
8.43 |
14.98 |
10.96 |
|
Cash Profit Margin (%) |
8.66 |
16.71 |
15.07 |
|
Adjusted Net Profit Margin(%) |
7.26 |
14.83 |
10.63 |
|
Return on Capital Employed |
27.06 |
25.79 |
13.54 |
|
Return on Net Worth(%) |
23.32 |
25.56 |
[61.28] |
LOCAL AGENCY FURTHER
INFORMATION
OPERATIONS:
During the year, the Company has shown spectacular performance inasmuch
as the sales turnover has increased from Rs. 388.500 Millions in 2006-07 to Rs.
3280.500 Millions in 2007-08, representing an increase of 744 %, and the profit
after tax has gone up from Rs57.600 Millions to Rs238.100 Millions,
representing an increase of 313 %. The carried forwarded losses have been wiped
out.
BUSINESS
PROSPECTS:
During the year, the Company continued to show robust growth in all its
key markets: private label in US and Europe, Institutional sales in Mainland
Europe and Domestic markets and traditional business from the Middle East. In
addition, the Company did very well in the new segments the Company entered
through acquisitions, Viz. Marine Exports and Recipe products. The Company made
substantial capacity enhancements during the year.
The Company has now become the largest company in the Frozen Foods &
Vegetables business in India. The brand "Everfresh" acquired in
November 2007, has shown excellent traction and the company is now the leader
in the retail segment. The company introduced new products like Green Chholiya
and Shredded Coconut in the market and the initial response has been
encouraging. The booming domestic retail business is expected to grow
exponentially in the coming few years across not only Metro and Mini Metro
cities, but also in Tier I and Tier II towns. The Company is confident of its
new domestic, own brands and its historical private label businesses becoming
the growth engines in the coming years.
The brand "Karen Anand", dealing in premium range of processed
food products, such as, Conserves, Mayonnaise, Sauces etc. has also been
acquired by the company. This range has tremendous synergies with our frozen
products and the Company expects significant growth due to this strategic
partnership. This will increase sales not only in the retail chains, but also
through the hospitality sector, where both the offerings give strong value
propositions.
The Company has entered into Marine Food Business during the last quarter
of the financial year and did considerable business in this vertical, having
achieved turnover of about Rs.171 crores. It is expected that the Company will
achieve substantial turnover in this vertical in the coming years.
In summary, the Company's traditional sources of business continue to
show strong traction while entries into new verticals through acquisitions and
incremental business from domestic and new product streams has a strong upside.
Performance
Highlights:
The Company has achieved substantial growth during the year with
the production and sales volumes and values recording substantial jump. After
the acquisition of the Everfresh business from Chambal Fertilisers and
Chemicals on November 7t" 2007, the company immediately leased out 3 other
plants and processed Green Peas from 5 plants in North India. Temptation Foods
has thus emerged as the single largest player in the domestic frozen F&V
business within a short span of 3 months.
There has also been a significant increase in the number of customers
serviced, especially domestic customers, as a key part of the derisking
strategy and for future growth.
Realization per metric tonne has also recorded an increase due to
better product mix, better raw material purchase strategy and economies of
scale. It is also a result of refreezing and processing of semi-processed goods
and job works.
The Company has also entered into two key areas of food processing this
year:
1. Marine products
2. Conserves/Sauces/Dressings
Marine Foods Business:
As planned, the company has been eyeing the marine frozen food export
business closely as it constitutes the single largest food vertical of exports
valued at over US$ 1.9 billion.
The Government of India has also realised the enormous potential of the
8,000 Kms of coastline that India enjoys and is targeting a turnover of over
US$5 billion in 3 years.
Keeping this in mind, the Company has acquired the businesses of three
units located in Southern India Viz. Cochin, Vizag and Chennai. This gives us
access to both the Western and Eastern coasts.
This is already the single largest vertical of the company this quarter
with a turnover of about Rs 1720.000 Millions.
Despite the lower catches and landings seen this season, the company is
confident that the business has huge potential and will be a significant
business segment in the years to come. The business also includes several
underlying export brands.
KAREN ANAND Brand:
In
addition, the Company also bought the business of Karen Anand's Gourmet Kitchen
as of January 1St 2008. This includes the brand "Karen Anand" which
offers a wide range of conserves, jams, sauces, mayonnaise and dressings.
The brand has enormous acceptance at the retail level and is well
recognised by consumers as a high end, quality product.
Fixed Assets:
- Freeehold
Land
- Factory
Building
- Plant and
Machinery
- Office Equipments
- Computers
- Furniture and
Fixture
- Vehicles
- Leasehold
Land
- Computer
Software
- Brand and
Trademarks
AS PER WEBSITE
Profile:
Subject
processes a variety of vegetables and fruits for the Indian markets and also exports
the same to several of the biggest brands in USA, UK, Europe and the Middle
East. They have one of the largest product ranges covering over 50 different
types of IQF vegetables and fruits.
Background and Financials
SUBJECT has been in the frozen foods processing and exports
business since 1991. They process and Individually Quick Freeze (IQF) fruits
and vegetables at our plants using the latest technology and processes. Being
at the forefront of the Industry's development, they today represent one of the
largest organized publicly listed companies in this domain. Till the last
quarter of the year 2007 their focus was on growing and consolidating the
frozen foods export business.
The Growth of SUBJECT has been Exponential after VBAPL (Venture
Business Advisors Private Limited; the current promoters of SUBJECT) stepped
in; starting from a small base. Their total income in the Financial Year ending
March 31, 2008 was Rs. 3280 million derived principally from the international
demand for frozen fruits and vegetables, their foray into the marine business
and acquisitions of the Everfresh and Karen Anand brands. In the Financial Year
ended March 31, 2008 vis-à-vis the Financial Year ending March 31, 2007 their
total income has grown at a rate of 726% from Rs. 397 million to Rs. 3280
million and the Profit After Tax has grown from Rs. 58 million to Rs. 238
million, registering a growth of around 310%.
They have now entered the domestic processed food industry
with an aim of becoming one of the dominant players in the sector.
Their Brands
They acquired the Everfresh
brand of frozen Fruits and Vegetables from the K. K. Birla group in November
2007.
The Karen Anand range of gourmet products has also become a
part of their portfolio around the same time. They produce the Karen Anand range of products at
their plant in Jejuri near Pune in Maharashtra.
They service some of their institutional clients under the
brand name of Delika.
International
Clients
International Ethnic: In
this line of business they serve some of the biggest clients in the US and
Canada and in the
- Middle East in the form of their own private Labels.
- International Mainstream: These are
buyers, who use their products as ingredients in the manufacture of their
final products and include international giants in Germany, UK and Japan.
Domestic
Clients
- Domestic Institutional: This segment
includes prestious clients such as Taj SATS, Ambassador, Oberoi and
Dinshaws.
- Domestic Retail: Nearly all
large domestic retail chains are SUBJECT clients. This segment includes
retail chains like Metro, Shoprite, Big Apple, Spencers, Reliance Fresh,
Spinach and Food Bazaar.
PRESS RELEASE
Temptation Foods
Limited. Reports strong growth on back of acquisitive strategy
�� Temptation
Food Limited’s Q4 FY08 Total Sales up strongly at Rs 2550.8 million
�� Q4
FY08 PAT at 131.1 million
�� The
Company plans to expand capacity as well as aggressively grow through the
acquisitive route
�� The
Company has evolved into being an ‘Owner of Brands’
Mumbai 10th April,
2008: Temptation Foods Limited. (TFL) one of India’s leading producers and
exporter of frozen fruits and vegetables today reported strong growth and
expansion on the back of its recent acquisitions and exponential growth in its
production and distribution network. The company also announced aggressive
plans to expand capacity and grow inorganically over the coming year through
similar acquisitions and strategic tie ups within the industry.
Commenting on the
results, Mr. Vinit Kumar, Chairman & Managing Director, Temptation
Foods Limited
(TFL), said, “Temptation Foods continues to deliver strong sales and profitability
growth. Our dominating presence in the processed foods market segment has
enabled us to maintain our momentum. We are exploring opportunities of both
strengthening our presence across India and minimising our input costs. We have
acquired three businesses, including two brands during the year and envisage
growth in the future coming through the inorganic route. I remain confident of
our ability to deliver strong value going forward”
TFL’s continued
growth is attributed to the strong sales performance which comes from the
heightened growth in demand across the country as also from the export market
which has seen quantum growth over the last few years. This growth in demand
logically has seen the company look at raising funds to the tune of
approximately $200 million to fund its capacity expansion and acquisition plan.
A snapshot of the
performance of TFL:
Q4 FY2007 (January
– March 2008) v/s. Q4 FY2006 (January – March 2007)
��
Total Income up to Rs 2550.8 million from Rs 114.5 million
��
Profit before Interest, Tax and Depreciation (PBIDT) up to Rs 186.8 million
from Rs 15.8 million
��
Profit before tax (PBT) rose to Rs 149.0 million versus Rs 14.0 million
��
Net Profit after tax (PAT) at Rs 131.1 million as compared to Rs 13.9 million
��
Basic Earnings Per Share (EPS) for the period stood at Rs 5.21 on a capital
base of Rs 251.4
Million
FY2007 (April 2007
– March 2008) v/s. FY2006 (April 2006 – March 2007)
��
Total Income up to Rs 3297.9 million from Rs 396.6 million
��
Profit Before Interest, Tax and Depreciation (PBIDT) up to Rs 319.6 million
from Rs 65.2 million
�� Profit
before tax (PBT) rose to Rs 273.6 million versus a loss of Rs 57.9 million.
��
Net Profit after tax (PAT) at Rs 238.1 million as compared to a loss of Rs 57.6
million.
��
Basic Earnings Per Share (EPS) for the period stood at Rs 11.42 on a capital base
of Rs 251.4 million
Notes to the
Editor:
Temptation Foods
Limited (TFL), an ISO 9001: 2000 Company and has been in the frozen foods
processing and exports business since 1991. The Company processes and
Individually Quick Freezes (IQF) fruits and vegetables using the latest
technology and processes. With state of the art production and processing
facilities at Jejuri, Sonepat, Karnal and other outsourced production TFL is
one of the leaders in the processed fruits and vegetables industry. Being at
the forefront of the Industry's development, TFL today represents one of the
largest organized publicly listed companies in this domain.
For further
information
Andrew R.
Fernandes
Head Corporate
Communications
Temptation Foods
Limited
Tel: +91 22 6740
4000
Mobile: +91
9820061959
Fax: +91 22 6740
4050
E-mail:
andrew.fernandes@temptationfoods.com
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.13 |
|
UK Pound |
1 |
Rs.85.02 |
|
Euro |
1 |
Rs.67.77 |
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 |
|