MIRA
INFORM REPORT
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Report Date : |
19.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
MASTEK LIMITED |
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Registered Office : |
804/ 805, Persiden House, Opposite C. N. Vidyalaya, Near Ambawadi
Circle, Ahmedabad-380006, Gujarat |
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Country : |
India |
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Financials (as on) : |
30.06.2007 |
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Year of Establishment : |
14.05.1982 |
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Com. Reg. No.: |
5215 |
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CIN No.: [Company
Identification No.] |
L74140GJ1982PLC005215 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMM00447G |
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PAN No.: [Permanent
Account No.] |
AAACM9908Q |
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Legal Form : |
Public Limited Liability Company. Company's Shares are Listed on the
Stocks Exchange |
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Line of Business : |
Export of Software and Software Products. |
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 |
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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 software development company having fine
track. Financial position is good. Trade relations are fair. Payment are
usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms. It can be reported as a
promising business partner in a medium to long run. |
LOCATIONS
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Registered Office : |
804/ 805, Persiden House, Opposite C. N. Vidyalaya, Near Ambawadi
Circle, Ahmedabad-380006, Gujarat, India |
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Tel. No.: |
91-79-26564340/37 |
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Fax No.: |
91-79-26564339 |
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Website : |
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Head Office : |
#106, SDF IV, SEEPZ Andheri (East), Mumbai-400096, Maharashtra, India |
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Tel. No.: |
91-22-66952222 |
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Fax No.: |
91-22-66951331 |
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Overseas Office : |
Located At:-
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Factory 1 : |
Unit 106, SDF IV, Seepz, Andheri (East), Mumbai, Maharashtra, India |
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Tel. No.: |
91-22-669522222 |
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Offshore development Centre : |
Unit No. 106 / 107,
SDF IV, Seepz, Andheri (East), Mumbai - 400 096 Tel. No. 91-22-829 0635 / 8247999 Fax No. 91-22-829 0557 # 183, SDF VI,
Seepz, Andheri (East), Mumbai – 400 096 Tel. No. 91-22-829 0635 / 8247999 Fax No. 91-22-829 2624 # IT 5/6, SDF VII,
Seepz, Andheri (East), Mumbai – 400 096 Tel. No. 91-22-829 0635 / 8247999 Fax No. 91-22-829 2387 # IT 7/8, SDF VIII,
Seepz, Andheri (East), Mumbai – 400 096 Tel. No. 91-22-829 0635 / 8247999 Fax No. 91-22-829 2069 2011, Sadashiv Peth, Opp. Janata Sahakari Bank, Tilak Road, Pune - 411 030, Maharashtra, INDIA Tel. No. 91-20-433 2634 / 5216 Fax No. 91-20-433 1433 |
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Branches : |
A-7 # 401/ G1, Millennium Business Park, TTC, Off Thane Belapur Road, Mahape,
Navi Mumbai-400710, Maharashtra, India |
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Tel. No.: |
91-22-27781272 |
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Fax No.: |
91-22-27781332 |
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Branches : |
2nd Floor, Building No. B-1 and B-2, The Cerebrum IT Park,
Kumar City, Kalyani Nagar, Pune-411006, Maharashtra, India |
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Tel. No.: |
91-20-66072000 |
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Fax No.: |
91-20-66072003 |
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Branches : |
6th Floor, # 605, ‘A’ Wing, 1, Carlton Towers, Airport
Road, Bangalore-560008, India |
DIRECTORS
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Name : |
Mr. Sudhakar Ram |
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Designation : |
Chairman cum Director |
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Name : |
Mr. Ashank Desai |
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Designation : |
Director |
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Name : |
Mr. Ketan Mehta |
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Designation : |
Non Executive Director |
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Name : |
Mr. R. Sunder |
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Designation : |
Director |
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Name : |
Mr. Raj Nair |
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Designation : |
Director |
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Name : |
Mr. Diwan Arun Nanda |
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Designation : |
Director |
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Name : |
Mr. Amit Shah |
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Designation : |
Director |
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Name : |
Mr. Rajesh Mashruwala |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Me. O. Banerjee |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
11465960 |
40.28 |
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Mutual Funds and UTI |
1841384 |
6.47 |
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Financial Institutions/Banks |
830 |
0.01 |
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Insurance Companies |
618378 |
2.17 |
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Foreign Institutional Investors |
8954263 |
31.47 |
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Bodies Corporate |
1279279 |
4.49 |
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Individuals Holding Nominal Capital upto Rs. 0.100 Millions |
3469865 |
12.18 |
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Individuals Holding Nominal Capital More than Rs. 0.100 Millions |
316398 |
1.11 |
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Non-Resident indians |
517824 |
1.82 |
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Total |
28464181 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Export of Software and Software Products. |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountant |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
As on 30.06.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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40000000 |
Equity Shares |
Rs. 5/- each |
Rs. 200.000 Millions |
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2000000 |
Preference Shares |
Rs. 100/- each |
Rs. 200.000 Millions |
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Total |
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Rs. 400.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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28464181 |
Equity Shares |
Rs. 5/- each |
Rs. 142.321
Millions |
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Total |
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Rs. 142.321 Millions |
Of the above :
- 14054594 and 6913280 equity Shares of Rs. 5/- each fully paid, have
been issued as bonus shares by utilization of Capital Redemption Reserve
and Share Premium Account respectively.
- 660000 equity Shares of Rs. 5/- each fully paid have been issued as
bonus shares by capitalization of profits transferred from General
Reserve.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.06.2007 |
30.06.2006 |
30.06.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
142.321 |
140.688 |
69.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2675.250 |
1886.413 |
1577.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2817.571 |
2027.101 |
1646.600 |
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LOAN FUNDS |
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1] Secured Loans |
3.742 |
5.675 |
6.100 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
3.742 |
5.675 |
6.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2821.313 |
2032.776 |
1652.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
684.771 |
819.131 |
566.000 |
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Capital work-in-progress |
316.174 |
61.663 |
60.300 |
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INVESTMENT |
1513.615 |
992.107 |
933.600 |
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DEFERREX TAX ASSETS |
75.712 |
63.224 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
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0.000 |
0.000 |
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Sundry Debtors |
832.092
|
739.231 |
437.700 |
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Cash & Bank Balances |
318.289
|
136.353 |
25.800 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
103.537
|
71.716 |
71.900 |
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Total
Current Assets |
1253.918
|
947.300 |
535.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
624.187
|
519.133 |
246.600 |
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Provisions |
398.690
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331.516 |
196.000 |
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Total
Current Liabilities |
1022.877
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850.649 |
442.600 |
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Net Current Assets |
231.041
|
96.651 |
92.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2821.313 |
2031.776 |
1652.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.06.2007 |
30.06.2006 |
30.06.2005 |
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Information Technology Services and Products |
4981.944 |
3867.298 |
2554.100 |
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Other Income |
90.336 |
147.063 |
82.200 |
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Total Income |
5072.280 |
4014.361 |
2636.300 |
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Profit/(Loss) Before Tax |
657.003 |
531.618 |
484.300 |
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Provision for Taxation |
[958.530] |
38.995 |
10.600 |
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Profit/(Loss) After Tax |
1025.533 |
492.623 |
473.700 |
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Earnings in Foreign Currency : |
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Export Earnings |
4914.766 |
3793.158 |
0.000 |
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Imports : |
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Capital Goods |
36.584 |
76.487 |
0.000 |
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Expenditures : |
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Power and Fuel |
0.000 |
0.000 |
23.200 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
145.900 |
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Employee Cost |
0.000 |
0.000 |
1425.700 |
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Selling and Administration Expenses |
0.000 |
0.000 |
342.300 |
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Miscellaneous Expenses |
0.000 |
0.000 |
34.600 |
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Operational Expenses |
3844.693 |
2989.074 |
0.000 |
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Interest and Financial Costs |
2.165 |
2.046 |
2.100 |
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Depreciation & Amortization |
252.286 |
217.579 |
178.200 |
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Other Expenditure |
316.133 |
274.044 |
0.000 |
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Total Expenditure |
4415.277 |
3482.743 |
2152.000 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
31.09.2007 1ST
Quarter |
31.12.2007 2nd
Quarter |
31.03.2008 3rd
Quarter |
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Sales Turnover |
1401.700 |
1371.900 |
1470.900 |
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Other Income |
54.400 |
31.500 |
24.000 |
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Total Income |
1456.100 |
1403.400 |
1494.900 |
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Total Expenditure |
1209.500 |
1118.300 |
1095.600 |
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Operating Profit |
246.600 |
285.100 |
399.300 |
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Interest |
1.300 |
1.100 |
1.600 |
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Gross Profit |
245.300 |
284.000 |
397.700 |
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Depreciation |
63.200 |
74.800 |
66.400 |
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Tax |
15.700 |
23.400 |
15.300 |
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Reported PAT |
169.500 |
187.200 |
320.300 |
KEY RATIOS
|
PARTICULARS |
30.06.2007 |
30.06.2006 |
30.06.2005 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
1.25 |
1.20 |
1.22 |
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TURNOVER RATIOS |
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Fixed Assets |
2.87 |
2.54 |
2.17 |
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Inventory |
0.00 |
0.00 |
0.00 |
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Debtors |
6.34 |
6.57 |
7.00 |
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Interest Cover Ratio |
297.27 |
266.80 |
231.62 |
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Operating Profit Margin(%) |
18.19 |
19.42 |
26.02 |
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Profit Before Interest And Tax Margin(%) |
13.13 |
13.80 |
19.04 |
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Cash Profit Margin(%) |
16.56 |
18.36 |
25.52 |
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Adjusted Net Profit Margin(%) |
11.50 |
12.74 |
18.55 |
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Return On Capital Employed(%) |
26.95 |
28.96 |
33.07 |
|
Return On Net Worth(%) |
23.65 |
26.82 |
32.35 |
LOCAL AGENCY
FURTHER INFORMATION
History
The company was incorporated on 14th May, 1982 at Ahmedabad in Gujarat under the name and style of Management and Software Technology Private Limited as a Private Limited Liability Company having Company Registration Number 5215. Its' name was changed to Mastek Private Limited. Subsequently the company was converted into a Public Limited Liability company under the name and style of Mastek Limited.
Subject was promoted by Mr. Ashank Desai, Mr. Ketan Mehta and Mr. R. Sundar. The company had venture funding support from TDICI. It started with providing turnkey software solutions to domestic clients.
A) RESULTS OF
OPERATIONS:
Group Global Operations:
The company delivered a consolidated income of Rs.8.10 billion for the year
ended June 2007 which is a 16% increase over the total income of Rs.7.01
billion for the year ended June 2006. For the full year ended June 2007, the
company's performance reflects contributions from the erstwhile joint venture
with Deloitte Consulting (DC JV) only till 9 March 2007. Despite no
contribution from the DC JV during the last quarter of the year, the company
delivered progressive revenues for the fiscal. Net profits (before
extraordinary items) for the year also increased from Rs. 691 million in FY2006
to Rs.796 million in FY2007, recording a 15% increase.
During the year, the UK operations contributed Rs.5.106 million in
revenues, amounting to about 64% of overall consolidated revenues. Mastek has a
strong presence in this market and the company has been successful in entering
into partnerships with large systems integrators and service, providers in the
UK, and is actively evaluating options of additional partnerships in that
market.
In the US market, where the company has seen better traction during the
year, revenues were Rs. 1.637 million, an increase of 28% over the preceding
year. During the fiscal year, the company strengthened its management team in
the US, inducting William McCarter, who has substantial technology and domain expertise
in the insurance and financial services sectors, as President of its North
American operations. Mr. McCarter's previous roles have been at leadership
positions in organizations such as ePolicy and the Allianz Group.
Mastek's German and Asia-Pacific (including Japan and India) operations
contributed Rs.524 million to overall consolidated revenues in FY2007, implying
a growth of 15% over the preceding year, The company also established a new
marketing office in Bangkok, Thailand, and Seoul, Korea,
During the year, Deloitte Consulting LLP, a subsidiary of Deloitte &
Touche USA LLP, acquired Mastek's interest in the Mastek-DC Offshore
Development Company Private Limited joint venture on March 9, 2007. In line
with the terms of an agreement, Mastek sold its entire equity interest in the
JV to affiliates of Deloitte Consulting LLP. Resultantly, the consolidated
financial performance of Mastek for FY2007 reflects only about 8 months of
contribution from the JV to revenues and earnings.
Mastek also terminated the Alliance Agreement with Carreker Corporation,
and 100% of Carreker's shareholding in Carretek was purchased by Mastek's US
subsidiary Majesco Mastek with effect from January 1, 2007. Mastek continues to
execute the existing contracts in that operation, but the company is not
considering actively growing it.
During 2006-07, Mastek added two new members to its Board of Directors,
Mr. Diwan Arun Nanda, a leading figure in India's strategic marketing and
advertising industry, and Mr. Amit Shah, a prominent US-based venture
capitalist. The new Directors bring individual dynamism and experience in
creating world-class organizations to the Mastek Board and have already started
contributing significantly to catalyze the company to the next level of
growth.
B) Mastek Ltd. Operations:
On a stand-alone basis, Mastek recorded a total income of Rs.5 billion
for the year ended June 2007, an increase of 26% compared to Rs.4 billion for
the year ended June 2006, demonstrating a growth of 25%. The Profit after Tax
grew by 108% to Rs.1.026 million in 2006-07 from Rs.493 million in
2005-06.
3. BUSINESS OUTLOOK:
The Indian IT industry continued to chart a growth trajectory during the
year, exceeding its forecasted growth, and almost touching the US$ 40 billion
mark in aggregate revenues. The outlook for next year too is, encouraging, with
NASSCOM expecting Indian IT software and services revenues to expand to US$ 50
billion in fiscal 2008,
Mastek made significant progress during the year in implementing
initiatives aimed at meeting its long-term objectives. The company continued to
strengthen its relationships with existing customers, while exploring new
opportunities along its focus verticals of insurance and government, thus
creating a robust pipeline for future growth. The company's new SOA-based
Elixir has generated significant interest in the marketplace. In view of the
manner in which the company has been able to increase its presence in the US
and deliver a healthy performance in the UK and other markets, the business
outlook is positive.
Fixed Assets:
- Leasehold
Land and Premises
- Owned
Premises
- Plant and
Machinery
- Software
Designs
- Furniture and
Fitings
- Leasehold
Improvements
- Vehicles
AS PER WEBSITE
Profile:
Ready for tomorrow since 1982
Every little step taken today is geared to help take flight, and stay
true to the dreams. We have lived by our commitment to be a solutions provider,
a world-class one at that, enabling businesses to apply technology to create
business transformation.
The word Mastek has evolved out of the 'best of management practices and
software technology'. They engage with their clients in delivering strategic IT
programs and platforms that enable
their business innovation
and transformation.. Therefore, it is a matter of
pride that Fortune 500 companies are their clients now, and their solutions are
poised to create many-a-first in their respective industries.
Their range of enterprise solutions to the Insurance and Government verticals
is the foremost proof of this passion. As the Third wave hits the Indian IT
industry, Mastek is poised to become a bellwether for Wave 3 companies out of
India.
PRESS RELEASE
IDBI Fortis launches their business on Mastek’s Elixir™
Mumbai 21 May 2008
Policy Administration System module
Signs contract for Second Phase
- Expands the
scope of Mastek to provide additional modules of Elixir™ covering Channel
Management, Claims and Re-insurance etc in addition to basic policy
administration.
- Gives IDBI
Fortis an opportunity to implement Elixir™ and incorporate global best
practices that Mastek has to offer from a domain stand-point.
- Enables IDBI
Fortis to adhere to high levels of flexibility in adapting to changing
needs of their customers while providing them with the ability of
launching new products faster.
- Mastek’s
scope entails all the modules of Elixir™ which are: Product Architect
Suite, New Business/underwriting, Policy Servicing, Point of Sale, Channel
Management, Re-insurance, Claims and Finance.
Mumbai, 21st May, 2008, Mastek Ltd, a leading IT solutions player
with global operations in providing new technology and IP-led enterprise
solutions to insurance, government and financial service organizations
worldwide, and IDBI Fortis Life Insurance Co Ltd, a joint venture between three
leading financial conglomerates – IDBI, Federal Bank and Fortis, each of which
enjoys a significant status in their respective business segments, have jointly
announced the launch of their Insurance business in India on Mastek’s Elixir™
Policy administration system.
After the successful launch, both companies which are headquartered in
Mumbai also announced the signing of the contract for the second phase, which
would enhance the scope of Mastek to provide additional modules of Elixir™
covering Channel Management, Claims, Re-Insurance etc. in addition to basic
policy administration.
Mastek’s ‘Elixir™’, is a component-based solution for policy
administration specifically targeted to insurance companies that want to launch
hybrid products and improve the efficiency of their distribution networks. This
single solution is designed to support all product lines including traditional
life, health, unit linked, annuities and pension products. It is an end-to-end
policy administration platform that integrates the front and back office.
Commenting on the contract, Mr. Sudhakar Ram, Chairman, Group CEO &
Managing Director, Mastek, said: "At Mastek, it has been our constant
endeavor to provide our customers with high value propositions. We are proud to
partner with IDBI Fortis and create value for their customers. Mastek has
consistently demonstrated its capability to address and comprehend insurance
sector requirements across the world. Having implemented similar projects successfully
across geographies we are confident that through our capabilities and
experience we will be able to support the aggressive growth plans of IDBI
Fortis and help them service their customers better."
"India is a strategic market for Mastek in terms of growth in the
insurance vertical and with a strong track record and a unique set of
proprietary frameworks and competencies, such as Elixir™, which is an
end-to-end solutions platform for the insurance industry we see tremendous
growth coming from this region."
Speaking on the occasion IDBI Fortis MD & CEO G.V. Nageswara Rao
said "IDBI Fortis is looking to rapidly expand its life insurance business
and an effective IT solution is an essential prerequisite for us. We need a
solution that enables us to launch innovative products in quick time and is
able to deliver high quality service to our customers by implementing an
efficient operations process. We are glad that in Mastek we found the right IT
partner to enable this. We selected the Elixir Policy Administration System
based on Mastek’s extensive exposure in the insurance field, its technology
expertise, proven implementation skills and a commitment to cater to the
insurance markets across the world.
After a detailed evaluation of several competing solutions, we found
that Mastek offered a technology that best suited our business
requirements"
Maarten Kerbert, COO has this to add "We have been working
with the Mastek team on the end to end Indian Elixir implementation. Just a few
weeks ago we launched our company. The Mastek team has certainly put their best
foot forward. At the final stage things are always hectic, last minute changes
and requirements, that is all part of the game.
I am happy to say that the implementation was successful, thanks to the
flexibility and the commitment of the entire Mastek team"
Benefits to IDBI Fortis
This engagement has given IDBI Fortis an opportunity to undertake a green-field
implementation allowing them to inherit best practices that Mastek has to offer
from a domain stand-point. The implementation of the system will
consequentially result in a host of benefits that will accrue to IDBI Fortis in
the form of ease and ability to launch new products faster and thereby serving
customers and meeting their needs better. It would also be able to launch newer
channels in the markets easily. The implementation will enable them to adhere
to high levels of flexibility in adapting to changing needs of their customers.
Maintaining the software would be relatively easy and the cost of ownership
would also be low. This contract entails all the Modules of Elixir™ which are:
Product Architect Suite, New Business/underwriting, Policy Servicing, Point of
Sale, Channel Management, Re-insurance, Claims and Finance.
Details of the implementation
The implementation of the globally successful system is to be done in two
phases, the first of which went live in March 2008 effectively and helped IDBI
Fortis launch their business in India. The second phase would be implemented over
a period of next eight months.
About Mastek Ltd
Mastek, is a Rs. 810 crore, US $184 million (FY 2007) publicly held, leading IT
player with global operations providing enterprise solutions to insurance,
government, and financial services organizations worldwide. With its principal
offshore delivery facility based at Mumbai, India, Mastek operates across US,
Europe, Japan and Asia Pacific regions. Incorporated in 1982, Mastek has been
in the forefront of technology, which along with proven methodologies and
processes, increase IT value generation to its customers through onsite and
offshore deliveries. For further information visit:http://www.mastek.com.
About IDBI Fortis
IDBI Fortis Life Insurance Co Ltd, is a joint venture between three leading
financial conglomerates – India’s premier development and commercial bank,
IDBI, India’s leading private sector bank, Federal Bank and Europe’s premier
Bancassurer, Fortis, each of which enjoys a significant status in their
respective business segments. In this venture, IDBI owns 48% equity while
Federal Bank and Fortis own 26% equity each. IDBI Fortis launched its first set
of products across India in March 2008, after receiving the requisite approvals
from the Insurance Regulatory Development Authority (IRDA). Today, we offer our
services through a vast nationwide network across the branches of IDBI Bank and
Federal Bank in addition to a sizeable network of advisors and partners.
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.83.74 |
|
Euro |
1 |
Rs.66.46 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
|
60 |
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 |
|