MIRA
INFORM REPORT
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Report Date : |
28.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
AMINES AND PLASTICIZERS LIMITED |
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Registered Office : |
Noonmati, Guwahati – 781020, Assam |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.09.1973 |
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Com. Reg. No.: |
001446 |
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CIN No.: [Company
Identification No.] |
L24229AS1973PLC001446 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA18981E |
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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 : |
Manufacturers of Basic Organic Chemicals. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 424356 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are 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 : |
Noonmati, Guwahati – 781020, Assam, India |
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Tel. No.: |
91-361-2550289/ 90 |
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Fax No.: |
91-361-2550313 |
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E-Mail : |
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Website : |
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Corporate/ Head Office : |
D Building, Shivsagar Estate, Dr. A B Road, Worli, Mumbai – 400018,
Maharashtra, India |
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Tel. No.: |
91-22-24935282/ 87/88 |
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Fax No.: |
91-22-24938162 |
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Plant 1 : |
Chemical Plant
(Unit No.1) Thane-Belapur Road, Turbhe, Navi Mumbai – 400705, Maharashtra, India |
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Plant 2 : |
APL Industrial
Gases Plant (Unit No.2) Survey No.49, Village Vadval – 420020, Taluka Khalapur, District
Raigad |
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Plant 2 : |
D 21/21A, TTC Industrial Area, Turbhe, Thane Belapur Road, Navi Mumbai
- 400075, Maharashtra, India |
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Tel. No.: |
91-22-27681350/ 27681321/ 27681342/ 27687367 |
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Fax No.: |
91-22-27681332 |
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E-Mail : |
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Branches : |
Located at :
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DIRECTORS
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Name : |
Mr. Hemant Kumar Ruia |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. K. K. Seksaria |
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Designation : |
Director |
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Name : |
Mr. Nirmal Suchanti |
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Designation : |
Director |
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Name : |
Dr. M K Sinha |
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Designation : |
Director |
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Name : |
Dr. P H Vaidya |
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Designation : |
Director |
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Name : |
Mr. Arun Shanker Nagar |
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Designation : |
Director |
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Name : |
Mr. B M Jindel |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Ajay Puranik |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Shareholding Pattern as on 30.09.2007
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Category of Shareholders |
No. of Shares |
Percentage |
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Shareholding of Promoter and Promoter and Group 2 |
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Indian Individuals/Hindu Undivided Family |
560998 |
16.02 |
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Bodies Corporate |
146447 |
41.82 |
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Public shareholding Financial Institutions/Banks |
1000 |
0.03 |
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Central Government/State Government Company |
400 |
- |
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Insurance Companies |
200 |
0.01 |
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Non-Institutions Bodies Corporate |
804242 |
22.09 |
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i) Individual shareholders holding nominal share Capital
up to Rs.1 lakh |
598015 |
17.08 |
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ii) Individual shareholders holding nominal share capital
in excess of Rs.1lakh |
72208 |
2.06 |
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Any other (Specify) Individual (Non-Resident individuals/Foreign Individuals) |
460 |
0.01 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Basic Organic Chemicals. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Ethanolamines |
M.T. |
10000 |
6019.865 |
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Phthalate- Plasticizers |
M.T. |
8000 |
- |
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Morpholine and derivatives |
M.T. |
3600 |
1066.960 |
GENERAL
INFORMATION
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Bankers : |
State Bank of India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
D. Basu and Company Chartered Accountants Lodha and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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9500000 |
Equity Shares |
Rs.10/- each |
Rs.95.000 millions |
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50000 |
Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.5.000 millions |
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Total |
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Rs.100.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3502000 |
Equity Shares |
Rs.10/- each |
Rs.35.020
millions |
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19385 |
14% Redeemable Cumulative Preference Shares |
Rs.100/-
each |
Rs.1.938
millions |
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Total |
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Rs.36.958 millions |
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 |
36.958 |
36.958 |
36.958 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
69.131 |
50.919 |
29.503 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
106.089 |
87.877 |
66.461 |
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LOAN FUNDS |
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1] Secured Loans |
103.354 |
46.376 |
51.629 |
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2] Unsecured Loans |
0.000 |
4.436 |
16.585 |
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TOTAL BORROWING |
103.354 |
50.812 |
68.214 |
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DEFERRED STATUTORY DUES |
8.957 |
15.399 |
21.290 |
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DEFERRED TAX LIABILITIES |
6.029 |
4.458 |
3.716 |
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TOTAL |
224.429 |
158.501 |
159.681 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
62.585 |
50.386 |
43.956 |
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Capital work-in-progress |
5.543 |
7.991 |
0.000 |
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INVESTMENT |
0.599 |
0.002 |
0.002 |
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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 |
156.803
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124.344
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3.067 |
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Sundry Debtors |
136.961
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87.909
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136.040 |
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Cash & Bank Balances |
14.730
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14.801
|
7.573 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
73.057
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50.144
|
38.214 |
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Total
Current Assets |
381.551
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277.199
|
291.363 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
202.327
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160.165
|
167.811 |
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Provisions |
23.522
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16.912
|
7.829 |
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Total
Current Liabilities |
225.849
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177.077
|
175.640 |
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Net Current Assets |
155.702
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100.122
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115.723 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
224.429 |
158.501 |
159.681 |
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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 |
922.081 |
840.598 |
844.226 |
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Other Income |
5.180 |
26.084 |
7.541 |
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Total Income |
927.261 |
866.682 |
851.767 |
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Profit/(Loss) Before Tax |
32.418 |
36.524 |
20.717 |
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Provision for Taxation |
13.936 |
14.633 |
6.690 |
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Profit/(Loss) After Tax |
18.482 |
21.891 |
14.027 |
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Total Earnings |
315.333 |
308.341 |
335.189 |
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Imports : |
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Raw Materials |
41.723 |
9.228 |
16.255 |
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Stores & Spares |
155.170 |
126.575 |
70.688 |
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Capital Goods |
0.000 |
0.154 |
0.108 |
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Total Imports |
196.893 |
135.957 |
87.051 |
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Expenditures : |
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Manufacturing Expenses |
264.001 |
234.266 |
242.019 |
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Administrative Expenses |
0.000 |
0.000 |
0.000 |
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Raw Material Consumed |
414.154 |
414.942 |
472.736 |
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Purchases made for re-sale |
212.974 |
177.092 |
112.884 |
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Miscellaneous Expenses |
0.000 |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
0.000 |
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Interest |
0.000 |
0.000 |
0.000 |
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Power & Fuel |
0.000 |
0.000 |
0.000 |
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Depreciation & Amortization |
3.712 |
3.858 |
3.411 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
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Total Expenditure |
894.841 |
830.158 |
831.050 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 (1st
Quarter) |
30.09.2007 (2nd
Quarter) |
31.12.2007 (3rd
Quarter) |
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Sales Turnover |
171.500 |
222.300 |
279.900 |
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Other Income |
0.300 |
0.600 |
0.500 |
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Total Income |
171.800 |
222.900 |
280.400 |
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Total Expenditure |
170.200 |
222.100 |
261.800 |
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Operating Profit |
1.600 |
0.800 |
18.600 |
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Interest |
7.600 |
9.500 |
10.300 |
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Gross Profit |
(6.000) |
(8.700) |
8.300 |
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Depreciation |
1.200 |
1.600 |
1.400 |
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Tax |
0.200 |
0.300 |
0.300 |
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Reported PAT |
(7.4500) |
(10.600) |
6.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
1.10 |
1.28 |
1.95 |
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Long Term Debt-Equity Ratio |
0.29 |
0.63 |
0.93 |
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Current Ratio |
1.21 |
1.29 |
1.28 |
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TURNOVER RATIOS |
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Fixed Assets |
6.25 |
5.89 |
6.29 |
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Inventory |
7.15 |
7.55 |
8.71 |
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Debtors |
8.94 |
7.88 |
8.54 |
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Interest Cover Ratio |
2.17 |
2.51 |
1.90 |
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Operating Profit Margin (%) |
6.27 |
7.31 |
5.23 |
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Profit Before Interest And Tax Margin (%) |
5.80 |
6.87 |
4.85 |
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Cash Profit Margin (%) |
2.31 |
2.92 |
1.93 |
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Adjusted Net Profit Margin (%) |
1.84 |
2.48 |
1.55 |
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Return On Capital Employed (%) |
34.23 |
43.63 |
34.66 |
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Return On Net Worth (%) |
23.33 |
37.02 |
33.61 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS
AND FUTURE PROSPECTS:
The year under review the income of the Company was approx.
7% higher as compared to last year. The net profit for the last year included
an export subsidy of Rs.24.700 Millions under Target plus Scheme as compared to
nil this years. Observe that the operating margin of the Company improved
substantially as compared to last year.
The Company has completed putting up of additional Plant and
Machinery at its factory, thus augmenting its capacities to produce various
product mixes depending on the market conditions.
EXPORTS:
The export revenue of the Company was higher by approx. 5%
at Rs.315.300 Millions as compared to Rs.308.300 Millions earned during the
previous year. The Company was thus able to maintain and consolidate its
position in the international market even amidst stiff competition.
RESEARCH
AND DEVELOPMENT:
The Company continued to develop products and formulations
indigenously. The year, certain new products were developed and launched
commercially. The Company continued to provide value added services to its
customers for new solvent formulations of Gas Treating and providing technical
simulation services. These have been well received by the customers locally and
overseas and will continue to contribute in expanding the customer base.
The Company has appointed a reputed Technical Institute for
developing a specialized Pressure Swing Adsorption technology and has commenced
the erection and commissioning of a Pressure Swing Adsorption Pilot Plant for
further development of this technology under its R&D activities. Once
completed, during the current year, it is expected that this business will
contribute significantly as the Company is in advanced stage of finalization of
orders with customers locally.
The Company has been able to increase its basket of newly
developed products of various Alkyl Alkanolamines through innovations achieved
as a result of sustained R&D efforts. The Company continues its efforts to
develop new products and processes in the pharmaceutical field based on present
raw material availability having good market potential both domestically as
well as internationally.
EAP
INDUSTRIES LIMITED (EAPIL):
The Directors' are happy to report that the Corporate
guarantees given by the Company against various advances to EAP Industries
Limited have been released and confirmation have been received from all the
Financial Institutions and Banks in this respect.
SICK
INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) ACT, 1985:
The Company has complied with the re-payment schedule and
other directives as provided in the sanctioned Rehabilitation Scheme and all
dues were paid in time as per the prescribed schedule. As per the directives,
the Company has set up a Management Committee which meets every month and
reviews all compliances. The Auditors appointed by the Hon'ble BIFR, have
conducted periodical Audit as prescribed and submitted their report to the
Hon'ble BIFR. Review Meetings were convened by the Hon'ble BIFR and necessary
steps are being taken for implementation of their directions.
MANAGEMENT
DISCUSSION AND ANALYSIS
The Management of Amines and Plasticizers Limited is pleased
to present its Management and Discussion Analysis Report before the
Shareholders of the Company.
BUSINESS OVERVIEW
The Company is engaged in the manufacture production of
various chemicals viz. Ethanaolamine, Methyl Diethanolamine (MDEA), Alkyl
Alkanolamines, Morpholine, its derivatives and Gas Treating Specialty Solvents.
The Company is a major manufacturer of these products and has a domestic as
well as international network for its sales. The End Users of the Company's
products are Fertilizers, Refineries and Oil and Gas Production Companies. The
Company has engaged a reputed Technical Institute to develop a specialized
Pressure Swing Adsorption Technology. The Company has commenced the erection
and commissioning of a Pressure Swing Adsorption Pilot Plant for further
development of this technology under its R&D activities. Once completed,
during the current year, it is expected that this business will contribute
significantly as the Company is in advanced stage of finalization of orders
with customers locally.
The Company's subsidiary APL Infotech Limited (formerly
known as Aditya Internet Services Limited) is still in the process of
commissioning its software development project. The Company is engaged in
R&D of software applications, preparing software solutions and applications
for Oil and Gas Industry for pipe leak detection and other related activities
which have a synergy with the Company's existing business.
The Company is an ISO 9001:2000 certified Company and
strictly adheres to the domestic and international standards for all the
products manufactured. Alj these products are manufactured with due attention
given not only to the environmental aspects but also by ensuring employee
safety and their welfare. The aggregate revenue of the Company was Rs.927.300
Millions and profit before tax stood at Rs.31.400 Millions.
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company achieved a growth of approx. 7% in its revenue
as compared to approx. growth of 10% of the Chemical Industry in general.
The Company's products are mainly exported to Middle East,
Europe, Korea and China. The acceptability of the Company's products has
enabled the Company to put up an improved performance and overall growth during
the year under report. In the domestic market, the Company's major clients are
Public Sector Undertakings engaged in the Refinery and Natural Gas business,
besides the Private Sectors, where the Company sells its products in various
industries such as Lubricants, Cosmetics, and Dyestuff etc.
PRODUCTWISE PERFORMANCE
The Company was able to maintain its market share in sales
of Alkanolamines in the international and domestic market. The major customers
were international and domestic Refineries, Fertilizer Units and Natural Gas
Plants.
As reported last year, the Plasticizers Plant was re-vamped
and continue to produce Morpholine derivatives, thereby increasing the
company's product range and capacities in these fields substantially.
Specialty Products are regularly being exported to foreign
countries and contribute to the export revenue. These products contribute to
the overall growth of the Company.
RESEARCH AND DEVELOPMENT PROGRAMMES
More attention is given to safety and environmental aspects
while standardizing the method of preparation of these products in laboratory
bench scale as well as commercialization of the same. These products find
applications in Oil and Gas industries, refineries, fertilizers-ammonia units,
new generation eco-friendly textiles and life saving pharma products.
The Company continued to value added services to its
customer for new solvent formulations of Gas Treating and providing technical
simulation services. These have been well received by the customers locally and
overseas and will continue to contribute in expanding the customer base.
As more and more Oil and Gas wells are dug all over the
world, the gas contains impurities of Acid Gases, such as Hydrogen Sulfide
(H2S) and Carbon dioxide (CO2) in unacceptable high levels which is to be
eliminated. Their Formulated product based on Methyldiethanolamine (MDEA)
serves specific requirement in this field as well as refineries, Ammonia,
Hydrogen and Ethylene Plants. Hydrogen Sulfide (H2S) is toxic and corrosive,
creating operating problem for pipeline companies while Carbon dioxide (CO2)
lowers the heating value of pipeline gas and also its emission to the
atmosphere, as a green house gas, is responsible for global warming, which is
hot topic now-a-days. Their company is thus indirectly contributing to clean
environment.
The Company has appointed a reputed Technical Institute for
developing a specialized Pressure Swing Adsorption technology and has commenced
the erection and commissioning of a Pressure Swing Adsorption Pilot Plant for
further development of this technology under its R&D activities.
OPPORTUNITIES AND THREATS
1. The Company is expecting a moderate growth in demand, but
profits are likely to remain under pressure due to volatile input cost and
cheaper imported products.
2. Further, the reduction in custom duties results in
availability of cheaper imports of products. This will affect the Company's
ability to pass on increased costs due to higher import cost.
3. The Company's export revenues are also likely to face the
impact due to the strong rupee, resulting in lower revenues and margins.
4. The Company's in-house Research and Development with
emphasis, quality culture and diversified expertise in chemical manufacture has
enabled to create a reputation as a reliable supplier in the domestic as well
as in the international market.
5. The Company's in house R&D continues to explore new
products and technology to enhance value addition and develop new product range
to keep in phase with the new generation of products and technology.
FINANCIAL PERFORMANCE
The Company has grown moderately in the current year. The
efficient utilization of existing capacities and sale of new products has
helped the Company to sustain its income during the year. The total income
increased steadily by 7 % from Rs.866.700 Millions to Rs. 927.300 Millions. The
Company was able to hold on a series of good performance of last few years
inspite of higher input cost and severe competition.
With the growing Income, the total expenditure has also gone
up to Rs.864.300 Millions in the year under review as compared to Rs.802.200
Millions in the previous year. The high expenditure was primarily due to
unprecedented increase in major inputs and fuel prices.
The net profit for the last year included an export subsidy
of Rs.24.700 Millions under Target Plus scheme as compared to Nil this year.
You will thus observe the operating margin of the Company improved substantially
as compared to last year.
RESULTS OF OPERATION
The total income in addition to sales mainly comprises of
other income and income from accretion in stock. The total income however, has
increased from Rs.866.682 Millions in 2005-2006 to Rs.927.262 Millions in
2006-2007.
The revenue from sales includes export revenue of Rs.315.300
Millions and domestic sales of Rs.610.900 Millions i.e. 34.04 % of export sales
and 65.96 % of domestic sales during the year under report.
SAFE
HARBOUR CLAUSE
Statements in the Management Discussion and Analysis
describing the Company's objectives and expectations may be "forward
looking statement" within the meaning of applicable securities laws and
regulations. These statements are based on certain assumptions and reasonable
expectation of future events. Actual results could however differ materially
from those expressed or implied. Important factors thaUcould make a difference
to the Company's operations include, among others, economic conditions
affecting demand/ supply, price conditions in the domestic and overseas market
in which the Company operates, changes in the Government regulations and tax
structure, economic developments within India and the countries with which the
Company has business contacts arid other factors such as litigation and
industrial relations. .
Thus the Company should and need not be held responsible,
if, which is not unlikely, the future turns to be quite different. Subject to
this management disclaimer, this discussion and analysis should be perused.
Note
of Accounts:
|
Particular |
31.03.2007 Rs. In Millions |
|
Contingent Liabilities not provided for in respect of:
|
1.003 0.531 23.331 4.070 |
|
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) |
3.400 |
|
The Company has revalued Leasehold Land, certain Buildings, Plant and
Machinery, Research and Development Equipment and Effluent Treatment Plant in
the year 1990-91 on the basis of reports of an external approved valuer on
market value/replacement cost using standard indices. The revalued amounts
(net of withdrawals) remaining substituted for the historical cost in the
gross block of fixed assets as at the close of the year are Leasehold Land
Rs.21.994 Millions Buildings Rs.7.509 Millions, Plant and Machinery Rs.
65.830 Millions Research and Development Equipment Rs.0.222 Millions and
Effluent Treatment Plant Rs.1.000 Millions. |
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(a) The Accounts of certain Debtors, Creditros, Loans & Advances are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the profit for the year, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current year's financial statements. (b) In the opinion of the Board, the Current Assets and Loans and Advances are approximately of the value stated, if realised in the ordinary course of business unless otherwise stated. The provisions for depreciation and for all known liabilities are adequate and not in excess of the amount reasonably necessary. |
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(a) The information regarding small-scale industrial undertaking has been determined to the extent that such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors. (b) The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given. |
|
Fixed
Assets:
- Freehold Land
- Leasehold
Land
- Development
of Leasehold Land
- Buildings
- Plant and
Machineries
- R and D
Equipment
- Effluent
Treatment Plant
- Furniture and
Fittings
- Equipment
- Vehicles
Corporate
Profile
Subject was incorporated in 1973 as a Public Limited
Company, registered under the Indian Companies Act of 1956 and is the pioneer
and largest producer of Ethanolamines, Alkyl Alkanolamines, Plasticizers,
Morpholine, Alkyl Morpholines and Gas Treating Solvents in India.
Subject was set up in Technical Collaboration with the erstwhile Napthachemie,
France (now a part of British Petroleum) and Plant Engineering was done by
Ralph M. Parsons, USA. company is an
ISO-9001:2000 certified company and is a global supplier of organic chemicals
used in Oil Refineries, Natural Gas Plants, Ammonia Plants, Petrochemical
Plants, Pharmaceuticals, Agrochemicals etc.
In the field of Ethanolamines and Alkyl Alkanolamines company is serving
approximately 75-80% of the total demand of the Indian Market and is regularly
exporting material to over 35 countries globally including USA, Canada,
Germany, Korea, Japan, Australia, New Zealand, the Middle East, etc.
Subject has been awarded the highest award by the Government of India for
"Import Substitution and Technical Development" for pioneering the
manufacture of Methyl Diethanolamine in 1991.
Subject has entered into a strategic alliance with the Dow Chemical Company USA
for Technology; Products and Services provided by its Specialty Amines Group to
cater to the total sour gas treatment requirements of Refineries, Ammonia
Plants etc. and have offered the technology for the first time in India. Subject
has a dedicated team of engineers / chemists providing a range of Gas Treating
Technologies / Services to Refineries, Natural Gas Plants, and Ammonia Plants
etc in India and overseas.
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.43.39 |
|
UK Pound |
1 |
Rs.85.16 |
|
Euro |
1 |
Rs.57.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
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 |
|