MIRA
INFORM REPORT
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Report Date : |
16.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
NITTA GELATIN INDIA LIMITED |
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Formerly Name : |
KERALA CHEMICALS AND PROTIENS LIMITED |
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Registered Office : |
Post Bag No. 4262, 50/1002, SBT Avenue, Panampilly Nagar, Cochin - 682
036, Kerala |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
30.04.1975 |
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Com. Reg. No.: |
002691 |
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CIN No.: [Company
Identification No.] |
L24299KL1975PLC002691 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNK00559G |
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PAN No.: [Permanent
Account No.] |
CN – 2386 |
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Legal Form : |
A Public Limited Liability
Company. The Company’s Shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Gelatin (mostly for photographic use),
Ossein and Dicalcium Phosphate (used in animal feed) from Crushed Animal
Bones |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 3573000 |
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Status : |
Good |
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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 : |
Post Bag No. 4262, 50/1002, SBT Avenue, Panampilly Nagar, Cochin - 682
036 |
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Tel. No.: |
91-484-2317904/805, 2310564/8, 2323463 |
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Fax No.: |
91-484-2310568 |
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E-Mail : |
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Website : |
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Factory 1 : |
Ossein Division Kathikudam P.O., (Via)
Koratty, Gelatin Division Kinfra Export Promotion
Industrial |
DIRECTORS
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Name : |
Mr. P. H. Kurian, IAS |
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Designation : |
Chairman |
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Name : |
Mr. A. K. Nair |
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Designation : |
Managing Director |
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Name : |
Mr. N. Muraki |
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Designation : |
Joint Managing Directo |
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Name : |
Mr. G. Suseelan |
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Designation : |
Director |
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Name : |
Mr. Norimichi Soga |
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Designation : |
Director |
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Name : |
Mr. T. Nishio |
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Designation : |
Director |
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Name : |
Mr. K. Inoue |
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Designation : |
Director |
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Name : |
Mr. Venu Nallur |
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Designation : |
Director |
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Name : |
Mr. K. Ramakrishnan |
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Designation : |
Director |
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Name : |
Mr. K. L. Kumar |
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Designation : |
Director |
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Name : |
Mr. K Ramakrishnan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. P. D. Vincent |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Resident Indians |
1412895 |
16.82 |
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Foreign Collaborators |
3900300 |
46.43 |
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Indian Collaborator |
2862220 |
34.07 |
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Domestic Companies |
188943 |
2.24 |
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Financial Institutions (IDBI) |
19248 |
0.22 |
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NRIs |
7154 |
0.08 |
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Mutual Funds |
3330 |
0.04 |
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Banks |
200 |
0.00 |
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Clearing Member NSDL/CDSL |
5710 |
0.06 |
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Total |
8400000 |
100.000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Gelatin (mostly for photographic use),
Ossein and Dicalcium Phosphate (used in animal feed) from Crushed Animal
Bones |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Ossein |
MT |
6000 |
5500 |
6568 |
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Ossein (Limed) |
MT |
-- |
3100 |
3256 |
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Dicalcium Phosphate |
MT |
12500 |
11000 |
14487 |
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Compound Glue |
MT |
300 |
300 |
0 |
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Gelatin |
MT |
2080 |
2000 |
2586 |
GENERAL
INFORMATION
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No. of Employees : |
326 |
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Bankers : |
v State Bank of
India v Canara Bank v State Bank of
Travancore v UTI Bank Limited v South Indian
Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Varma and Varma Chartered Accountant |
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Associates/Subsidiaries : |
Kerala State Industrial Development Corporation Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10,000,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 100.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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8,400,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 84.000 Millions
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
84.000 |
84.000 |
84.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
630.600 |
581.209 |
619.174 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
714.600 |
665.209 |
703.174 |
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LOAN FUNDS |
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1] Secured Loans |
260.000 |
275.982 |
275.844 |
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2] Unsecured Loans |
21.600 |
38.378 |
49.343 |
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TOTAL BORROWING |
281.600 |
314.360 |
325.187 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
996.200 |
979.569 |
1028.361 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
523.700 |
577.768 |
632.573 |
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Capital work-in-progress |
14.400 |
1.660 |
0.664 |
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INVESTMENT |
35.900 |
22.778 |
22.779 |
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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 |
375.100
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332.255
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324.605 |
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Sundry Debtors |
72.900
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57.035
|
56.798 |
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Cash & Bank Balances |
15.800
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6.074
|
10.955 |
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Other Current Assets |
0.000
|
19.609
|
26.938 |
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Loans & Advances |
74.600
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56.194
|
37.835 |
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Total
Current Assets |
538.400
|
471.167 |
457.131 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
97.800
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89.247
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79.463 |
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Provisions |
21.900
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6.733
|
6.216 |
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Total
Current Liabilities |
119.700
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95.980 |
85.679 |
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Net Current Assets |
418.700
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375.187 |
371.452 |
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MISCELLANEOUS EXPENSES |
3.500 |
2.176 |
0.893 |
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TOTAL |
996.200 |
979.569 |
1028.361 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1347.300 |
976.385 |
884.122 |
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Other Income |
38.400 |
20.233 |
112.045 |
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Total Income |
1385.700 |
996.618 |
996.167 |
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Profit/(Loss) Before Tax |
72.200 |
(36.564) |
(21.748) |
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Provision for Taxation |
13.000 |
1.400 |
2.223 |
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Profit/(Loss) After Tax |
59.200 |
(37.964) |
(23.971) |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
623.679 |
542.481 |
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Total Earnings |
NA |
623.679 |
542.481 |
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Imports : |
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Raw Materials |
NA |
9.261 |
0.436 |
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Capital Goods |
NA |
1.469 |
13.957 |
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Others |
NA |
4.413 |
1.252 |
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Total Imports |
NA |
15.143 |
15.645 |
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Expenditures : |
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Manufacturing Expenses |
136.900 |
391.332 |
376.637 |
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Excise Duty |
24.400 |
0.00 |
0.00 |
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Administrative Expenses |
0.000 |
0.000 |
0.000 |
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Raw Material Consumed |
710.200 |
540.962 |
552.217 |
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Employee Cost |
83.700 |
0.000 |
0.000 |
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Power & Fuel |
176.400 |
0.000 |
0.000 |
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Selling and Administration Expenses |
82.200 |
0.000 |
0.000 |
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Miscellaneous Expenses |
22.700 |
0.000 |
0.000 |
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Interest & Financial Charges |
37.600 |
0.000 |
0.000 |
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Depreciation & Amortization |
65.700 |
69.701 |
65.721 |
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Other Expenditure |
0.000 |
31.186 |
23.343 |
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Stock Adjustments |
(26.300) |
0.000 |
0.000 |
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Total Expenditure |
1313.500 |
1033.181 |
1017.918 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2007 (1ST
Quarter) |
30.09.2007 (2nd Quarter) |
31.12.2007 (3rd
Quarter) |
31.03.2008 (4th
Quarter) |
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Sales Turnover |
301.300 |
403.200 |
367.200 |
392.100 |
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Other Income |
12.300 |
13.000 |
13.500 |
10.200 |
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Total Income |
313.600 |
416.200 |
380.700 |
402.300 |
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Total Expenditure |
284.700 |
375.200 |
319.800 |
354.400 |
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Operating Profit |
28.900 |
41.000 |
60.900 |
47.900 |
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Interest |
8.900 |
9.300 |
10.900 |
12.300 |
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Gross Profit |
20.000 |
31.700 |
50.00 |
35.600 |
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Depreciation |
15.200 |
15.900 |
17.000 |
16.300 |
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Tax |
0.800 |
2.100 |
0.700 |
2.700 |
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Reported PAT |
4.000 |
13.700 |
32.300 |
16.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.43 |
0.47 |
0.43 |
|
Long Term Debt-Equity Ratio |
0.06 |
0.06 |
0.09 |
|
Current Ratio |
1.37 |
1.27 |
1.37 |
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TURNOVER RATIOS |
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Fixed Assets |
1.15 |
0.87 |
0.82 |
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Inventory |
3.81 |
3.08 |
3.05 |
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Debtors |
20.74 |
17.79 |
17.48 |
|
Interest Cover Ratio |
2.92 |
(0.17) |
0.07 |
|
Operating Profit Margin(%) |
13.03 |
6.35 |
7.27 |
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Profit Before Interest And Tax Margin(%) |
8.15 |
(0.53) |
0.17 |
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Cash Profit Margin(%) |
9.27 |
3.13 |
4.50 |
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Adjusted Net Profit Margin(%) |
4.39 |
(3.75) |
(2.59) |
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Return On Capital Employed(%) |
10.61 |
0.00 |
0.00 |
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Return On Net Worth(%) |
8.00 |
0.00 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
History
The Subject is a joint venture between Kerala State
Industrial Development Corporation and two renowned Japanese companies - Nitta
Gelatin and Mitsubishi Corporation. It produces ossein, a chemical used to
manufacture gelatin (mostly for photographic use) and dicalcium phosphate (used
in animal feed) from crushed animal bones. It began commercial production in
1979.
The plant capacity to manufacture ossien was initially 3300 tpa and that
of DCP was 6700 tpa. Ossein capacity was increased to 5000 tpa and of DCP to
11000 in 1992-93. In 1993-94, the company undertook a project for liming of
ossein.
In 1995-96, the first phase of the liming project was completed. The
company is setting up a unit for the manufacture of 2000-tpa gelatine with the
technical collaboration of Nitta Gelatin, Japan. The project cost is Rs 700.000
Millions For the third time in succession, the company received the Top Export
Award for Ossein for 1994-95 from CAPEXIL.
During 1996-97, the trial project of Liming Of Ossein was restarted on
Feb.'97 with an installed capacity of 5 MT per day, due to delay in the
previous year. The Gelatine project is also under implementation due to delay
in respect of the land acquired, but since the company has received allotment
of 13 acre plot for the project in the KINFRA Export Promotion Industrial Park
in Kakkanadu.
Trial run production of Limed Ossein commenced in Feb.'97 and the
construction of the Gelatine Project was completed as per schedule. A new
subsidiary by name of Bamni Protiens Private Limited was incorporated in
December 1997 with an authorised capital of Rs 30.000 Millions.
During 1998-99, the company's Ossein division got ISO 9002 certification
from KEMA, Netherland. Also 2000MT Gelatin Plant at Kakkanad commenced commercial
operation from 8th March, 1999. It was delayed much and the actual project cost
came to Rs. 837.300 Millions as against projected cost of Rs. 778.200
Millions.
The Company's business was adversely affected due to madcow disease in
Europe, however the clearance given by the European Union for import with
restriction is expected to show some signs of recovery. The company with the
help of Collaborators is planning to make investments in Gelatine plants to the
extent of Rs.50.000 Millions and is exploring ways and means of raising the
requisite funds to maximum advantage including sourcing from Foreign
Banks/Institutions.
PERFORMANCE
Sales increased by 34.4% over previous year to Rs.1312.300 Millions as a
result of increased demand of Ossein from collaborators and also better sales
realisation of DCP. The production at Ossein Division increased by 48% and at
Bamni Proteins Ltd. (BPL), the subsidiary Company, by 25.29%. This year the
Company changed its drying operations from Furnace Oil to Firewood except in
critical areas resulting in substantial savings. The profit before tax is
Rs.72.183 Millions as against a loss of Rs. 36.564 Millions during the previous
year. Even though the company has brought forward lossess, the company has to
pay an amount of Rs.8.099 Millions Minimum Alternate Tax (MAT) which can be
setoff in future tax liability. The achievement of 2006-07 can be attributed to
the strength of their brand and strong, enduring customer relationships, backed
by the commitment of collaborators M/s. Nitta Gelatin Inc., Japan. The
approvals received from two international regulatory agencies - United States
Food and Drug Administration (USFDA) from USA and European Directorate for the
Quality of Medicines (EDQM) from Europe helped the company to increase its
exports to USA and Europe and also to Indian customers who are exporting their
products to USA and Europe.
The company is making all out efforts to further improve the performance by
increasing the yield and reducing production cost. To identify possible areas
of cost reduction and to monitor improvement activities closely, groups of
employees have been constituted for each area of operation.
The Company sold 1812 MT of Gelatin in the export markets such as Japan, Iran,
USA, Canada, Turkey, Thailand, Netherlands, Singapore etc. and 847 MT in the
domestic market. Altogether, the turnover increased by 34.4% registering
revenue growth by 38.13% over 2005-06. The continued patronage of their valued
customers demonstrates their confidence in their brand. The increased turnover
gives credence to the company's ability to keep growing in most competitive
gelatin market as they continuously update and respond to the changes in
consumers preference. The company is implementing a project for increasing the
production of gelatin by 10% by adding certain balancing equipments and
improving efficiency. An amount of Rs.58.000 Millions is estimated for this
project and the company expects to complete the expansion by June 2007.
SEGMENT-WISE
PERFORMANCE:
Exports:
The demand for KCPL's pharmaceutical and photographic Grades of Gelatin
remained firm during last year.
With improved market conditions in Japan, NGI supported the company by
substantially increasing the offtake of Ossein. NGI has confirmed that they
will maintain this level of Ossein purchase in the year 2007-08 also.
Domestic:
The company's customers for gelatin in India continue to use the
company's product mainly for their export production. With the growing export
of Indian pharmaceutical products, the company could increase the total sales
in the domestic market.
The last year was one of the best years for the Indian Poultry Industry
and this in turn increased the demand for DCP and resulted in better
realisation.
Opportunities:
The company is in the process of establishing business in new overseas
markets on the strength of the product quality and regulatory compliance.
The company is also exploring the possibilities of offering
value added products to new markets and new customers.
Threats:
The substantial increase in the production of pork skin gelatin coupled
with the increase in production of low cost bovine hide gelatin has adversely
affected the world wide bone gelatin market. With the advent of cheaper digital
photographic equipments, conventional film based photography is on the decline.
Alternatives such as HPMC (Hydroxy Propyl Methyl Cellolose) and starch
derivatives still pose a threat to gelatin.
Outlook:
The company's focus on pharmaceutical grade gelatin is giving good
results.
The demand for the company's product in this market segment is good and the company expects to further increase the sales in this segment. Even though conventional photography is on the decline, the company will be able to maintain sizeable sales volumes in this segment.
Ossein exports are expected to remain stable for the next few
years.
With Indian Poultry Industry on a growing path, the company expects the demand
for DCP to be steady in the current year.
Internal control system:
KCPL has evolved a system of internal controls to ensure that assets are
safeguarded, transactions are authorized, recorded and correctly reported.
The internal control system is supported by management reviews. Planned periodic reviews are carried out for identification of control deficiencies, bridging gaps with best practices and formulation of time bound action plans to minimise risk. To further strengthen internal control, a firm of Chartered Accountants has been appointed to do internal audit whose scope of work and work programme is reviewed by the Audit Committee at the beginning of each year. The findings of the Internal Auditors are discussed with the Audit Committee and adequate mitigatory steps are taken to plug weaknesses pointed out. The Board is of the view that appropriate procedures and controls are operating and monitoring procedures are in place.
In line with the requirement of Clause 49 of the Listing Agreement, the
company has put in place a Risk Management Framework and the findings/
recommendations are discussed with the Board of Directors/Audit Committee.
Risk Management as a formal concept is an integral part of the business process and the recommendations are being implemented.
Financial Performance:
Turnover increased by 34.4% to Rs. 1311.900 Millions during the year
ended 31st March 2007 as compared to Rs.976.300 Millions during the previous
year.
The Gross profit (earnings before interest, depreciation, taxes and write
back) for the current year was Rs.172.600 Millions as against Rs. 62.400
Millions in the previous year. The operating profit (including other income)
was Rs.124.900 Millions as against Rs.31.700 Millions in the previous year.
The interest expenses and depreciation for the current year was Rs.34.700
Millions and Rs.65.700 Millions as against Rs.29.200 Millions and Rs.69.700
Millions of the previous year.
Human Resource Development:
During the year 2006-07 a section of employees resorted to self declared
boycott at Ossein Division. However, the company could maintain the production
with the whole hearted co-operation extended by the other employees. The
company could achieve record production during the year. The present industrial
relations situation at Ossein Division is extremely cordial.
At Gelatin Division, the company concluded the 2nd long term settlement
which is highly productivity oriented. The settlement has been implemented and
the division is poised to achieve a production target of 3000 MT per annum by
July 2007. The company initiated organisation development intervention
programme called 'Developing Environment Focussed Organisational Growth
(DEFOG)'. This programme is progressing at a fast pace and the results are
visible all through the organisation.
Many training programmes have been conducted during the year for employee
development as well as for improving operations covering areas like process
improvement, quality improvement, preventive maintenance, good manufacturing
practices, documentation and safety.
BAMNI
PROTEINS LIMITED
The annual production during the year was 25.29% higher than the previous year.
The company also recorded a net profit of Rs. 0.489 Millions as against a loss
of Rs. 4.266 Millions during previous year. The increase in furnace oil cost,
cost of coal and also power cost substantially reduced the profit margin of
Bamni Proteins Limited
The Directors' Report, Balance Sheet and Profit & Loss Account of Bamni
Proteins Limited for the year 2005-07 is attached as required under Section 212
of the Companies Act, 1956.
The Company has become a Sick Industrial company as per the provisions of
Sick Industrial Companies (Special Provisions) Act, 1985.
COLLABORATORS
The Collaborators continue to provide their wholehearted support to the
Company.
M/s. Nitta Gelatin Inc., the technical and financial Collaborators,
purchased 2,92,000 Equity Shares from M/s.
Mitsubishi Corporation, during the year. Their total share participation
is now 46.43%. There is, however, no change in the total holding of the Foreign
Collaborators.
Fixed Assets
v
Land and Development
v
Leasehold Land
v
Building
v
Plant & Machinery
v
Service Equipment
v
Office Equipment
v
Furniture & Fixture
v
Vehicles
As per website details
Corporate Profile
VISION
To become a premier industry in India with a global perspective, world class standards of efficiency and professionalism and core institutional values.
v Reach the position as the leader in Gelatin manufacture in India.
v Maximise shareholder value through high sustained earnings per share.
v Continue as an institution with a culture of mutual care and commitment, a satisfying work environment and continuous learning opportunities.
Kerala Chemicals and Proteins Limited. (KCPL), one of the most successful Indo-Japanese industrial ventures, was incorporated in 1975 and started commercial production in 1979.
KCPL is managed by a professional team. Through its collaborators KCPL has
access to state-of-the-art technology and process inputs that help the company
achieve its global vision.
STRENGTHS
v Innovative manufacturing and business strategies
v A vast global clientele
v Dedicated, technically qualified people
v Excellent after-sales guidance and customer support service
v Steady growth across the past two decades
v Committed to improving the quality of the society
The Promoters
NITTA GELATIN INC.
(NITTA)
The Gelatin division of the multidivision, multiproduct NITTA Group of Japan,
NITTA Gelatin Inc. was formed in 1918. The company has five main divisions -
Gelatin, Food Additives, Adhesives, Engineering and Research & Development.
NITTA has set for itself high quality standards through relentless research,
development, innovation and production technology. All of which have made it
the world leader in the Gelatin market.
MITSUBISHI CORPORATION (MC)
Japan's largest general trading company, Mitsubishi Corporation handles a vast
array of goods and services ranging from telecommunications to tea. MC was
established in 1950 and has its headquaters in Tokyo, Japan.
THE KERALA STATE INDUSTRIAL DEVELOPMENT
CORPORATION LIMITED
The nodal agency for the development and promotion of industries in Kerala, the
KSIDC is a fully owned company of the state Government. For over 35 years now
the Corporation has been giving entrepreneurs professional, technical and
financial assistance to set up successful business projects in Kerala.
They are Certified
v ISO 9001 : 2000
v HACCP
v WHO - GMP
v EDQM - Certificate of Suitability
Quality Policy
They, in KCPL are committed to enhance customer confidence through continual
improvement of product quality, safety and service.
It is this simple realisation that urged them on across the last twenty years
to focus solely on quality. Perhaps it is this preoccupation with quality that
won them rich dividends - awards for quality and performance, discerning
clients across the world and a steady growth rate.
KCPL combines the best technology, marketing expertise, and most importantly,
dedicated human resource. All of which go a long way to ensure their clients
absolute quality.
Sustained quality through advanced technology
Their association with NITTA gives them access to the latest technologies in the industry. A whole time Technical Director from NITTA heads Technical Operations. Gelatin quality control is directly under a Quality Control Manager from NITTA. A full fledged R&D department focuses on innovation, improvisation and process development.
Gelatin
KCPL today is one
of the major manufacturers of premium, export quality Gelatin in India.
Functioning in technical collaboration with NITTA, the company has a production
capacity of 2000 TPA.
KCPL's
state-of-the-art plant is highly automated using the latest available version
of process control software. The entire process is monitored and controlled
from the Central Control Room.
The equipment
selection for the plant, has been with an eye on maintaining global product
quality standards. All critical equipment have been imported from the best
sources in the world.
At KCPL, GMP,
Hygiene and Sanitation are watch words. The processing of Bone to Limed Ossein
is done at the Ossein plant. Limed Ossein, is transported to the Gelatin plant
in specially designed tankers and processed to Gelatin. This enables KCPL
maintain very high level of hygiene & sanitation.
Great care is taken to ensure that the customer receives the
product in immaculate condition. Packing and product handling are automated.
All goods leaving their factory are palletised and stretch-wrapped.
Their pre-occupation with quality has won them rich dividends - awards for
quality and performance, discerning customers across the world and a steady
growth rate. Comprehensive customer orientation is one of KCPL's
entrepreneurial guidelines. They believe that technically demanding products
are only as good as their accompanying services.
v Customer specific products and usage related solutions
v Consistent quality, meeting USP standards
v Quality Control directly under Nitta
v GMP implemented
v Ready for vendor audit requirements
v Technical presentations and interactive sessions
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.42.90 |
|
UK Pound |
1 |
Rs.83.76 |
|
Euro |
1 |
Rs.65.99 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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/normal. |
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 |
|