MIRA
INFORM REPORT
|
Report Date : |
12.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
MCNALLY BHARAT ENGINEERING COMPANY LIMITED |
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Formerly Name: |
PRABHUDAYAL
RAMKRISHNA PRIVATE LIMITED |
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Registered Office : |
4 Mangoe Lane, 5
& 7th Floor, Kolkata – 700001, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.07.1961 |
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Com. Reg. No.: |
21-25121 |
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CIN No.: [Company
Identification No.] |
U10102WB1961PTC025121 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM08976C/RCHM01882G |
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PAN No.: [Permanent
Account No.] |
AABCM9443R |
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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 : |
Manufacturing of Industrial Machinery and Equipment and also in
Consultancy and Industrial Turnkey Projects. |
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 3900000 |
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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 company having satisfactory track. Trade relations are fair.
General financial position is satisfactory. 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 : |
4 Mangoe Lane, 5
& 7th Floor, Kolkata – 700001, West Bengal |
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Tel. No.: |
91-33-5550 0725-39, 2213 8905, 2240 0340 / 5016 / 65500725-39 |
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Fax No.: |
91-33-22480340 |
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E-Mail : |
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Website : |
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Corporate
Office : |
44, Park Street, Kolkata – 700 016, West Bengal |
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Tel. No.: |
91-33-22478611 / 22403479 / 0221 / 3338 / 22800810 / 0811 |
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Fax No.: |
91-33-240 2086 / 2802707 |
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E-Mail : |
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Factory 1 : |
Production
Division: P. O.
Kumardhubi, Dist. Dhanbad, Jharkhand,
Bihar – 828203, India Tel. No. 91-6540-223010 / 11/ 13
/ 15 / 19 / 47 / 48 91-6540-298321
/ 263265 Fax No. 91-6540-223024 Cable MEDOLARK KUMARDHUBI E Mail mbe@dte.vsnl.net.in Roads Division
44, Park
Street, Kolkata – 700 016, West Bengal Tel. No. :
91-33-22478611 / 22403479 / 0221 / 3338 / 22800810 / 0811 Fax No. :
91-33-22402086 / 22802707 E-Mail :
corporate@mcnallybharat.com Website http://www.mbecal.com Cable MEDOLARK, KOLKATA Southern Division :
Hoodi-Whitefield Road, P. O. Whitefield,
Bangalore – 560 066, Karnataka Tel. No. 91-80-8452596 To 99 Fax No. 91-80-8452764 Cable MINIPRO
WHITEFIELD E Mail mbl@mcnallyblr.com |
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Regional offices |
Located at : Mumbai and New Delhi |
DIRECTORS
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Name : |
Mr. V. K. Verma |
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Designation : |
Director |
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Name : |
Mr. A. Sankara Narayanan |
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Designation : |
Director |
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Name : |
Mr. S. K. Pasari |
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Designation : |
Director |
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Name : |
Mr. U. Parekh |
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Designation : |
Director |
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Name : |
Mr. C. K. Pasari |
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Designation : |
Director |
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Name : |
Mr. U. S. Chaturvedi |
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Designation : |
Director |
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Name : |
Mr. S. Singh |
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Designation : |
Managing Director |
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Name : |
Mr. A Khaitan |
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Designation : |
Director |
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Date of Appointment : |
31.10.2006 |
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Name : |
Mr. S .R Das Gupta |
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Designation : |
Director |
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Date of Appointment : |
21.06.2006 |
KEY EXECUTIVES
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Name : |
Mr. D. Chatterjee |
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Designation : |
Company Secretary |
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Name : |
Mr. D. Khaitan |
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Designation : |
Chairman |
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Name : |
Mr. S. P. Singhi |
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Designation : |
Vice Chairman |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Indian Promoters |
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9026302 |
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Institutional Investors |
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. |
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Mutual Funds and UTI |
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1672128 |
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Banks, Financial Institutions, Insurance Companies |
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2226414 |
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FIIS |
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1386027 |
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Others |
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Private Corporate Bodies |
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2354435 |
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Indian Public |
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4640934 |
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NRIs/ OCBs |
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5155558 |
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Total |
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26461798 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Industrial Machinery and Equipment and also in
Consultancy and Industrial Turnkey Projects. |
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Products : |
v Material
Handling and Conveying Plant / Machinery v Crushing and
Screening Plant / Machinery / Spares v
Ball Mills - Plant / Machinery / Spares |
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Product Description : |
v
Turnkey project in Bulk Material Handling v
Turnkey Projects in mineral Benefication v
Manufacture and sale of equipments for such projects |
PRODUCTION STATUS as on 31.03.2007:-
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a)
Installed Capacity of plant at Kumardhubi |
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i) Coal Washing Plant of 300 Tons per hour capacity |
Two Plant per
annum |
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ii) Coal Washing
Plant, Materials Handling and Conveying System, Thermal Power Plant on Coal Handling
System, Rail Wagon, Haulages, Retarders, Unloaders and Loaders, Wagon
Tipplers, Rotary Discharge Machines, Automatic Sampling, Primary, Secondary
Crushing and Screening of Bulk Materials, Pump and Centrifugal and Valves,
Feeders and Gates, Bins, Hoppers, Chutes, Gears, Pulleys, Sprockets, Screens
and Screen Plates, Dryers, Centrifugal and Thermal Coal Cleaners, Conveyor
Chain Drives, Coal Crushing, Breaking, Screening and Conveying System,
Structural Steel Work, Engineering, Fabrication and Erection. Port and Yard
Handling Equipment Open |
20000 Tonnes per
annum |
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Cast Mining
Machinery |
3000 MT |
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Steel Plant Equipment |
5000 MT |
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Sinter Plant |
1000 MT |
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iii) Cement Mill
Machinery |
Two Plants of
3000 Tonnes and above per day each |
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iv) Lime
Recovery Plant, Lime Burning Plant, Coke Calcining Plant, Phosphate Ore
Nodulizing Plant, Lightweight Aggregate Plant, Magnesite Calcining to
Periclase for Refractory Industry, Carbon Paste, Green Anode – Bath Handling,
Carbon Recycling, Alumina Handling Plant, Special Coke Plant, Pelletizing
Fine Materials, Rock Crushing and Screening, Pneumatic Handling System,
Complete Line of Kennedy Van Saun Machinery such as Crushers and Kilns which
are components of the above plants. |
Nine Plants per
annum |
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v) Mineral
Beneficiation and Treatment Plants with all associated equipments like,
grinding mills, Floatation
Ceils, Thinners, Pumps, Filters etc. |
3 plants of
60000 TPD p.a |
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vi) Ash
handling/Pneumatic handling Plants, Equipments like Transporter Vessel,
Valves, Pressure Vessels, Chemical Plants, such as
avaporation and Bye products with associate items
like Pressure Vessels, utilities, etc. |
4 plants of 60
MT per hour capacity |
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vii) Spare Parts, Jobing works, Water
Treatment. Transport and Distribution |
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B ) Installed Capacity of Projects Division |
Installed capacity |
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Engineering, Procurement and Construction
Jobs |
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Coal Handling,
Material Handling, Crushing and Conveying Systems, etc. |
Nos |
10 |
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Metallurgical and
Mineral Process Plants for Aluminium, Copper, Zinc, Iron Ore etc. including
coal washeries |
Nos |
8 |
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Ash Handling
Plants |
Nos |
12 |
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Water
Management'Systems |
Nos |
6 |
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Port Handling
Equipment and Stockyard Machinery |
Nos |
30 |
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Structural
Fabrication |
MT |
30000 |
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Sales and production for the year ended
31.03.2007: |
Production |
Sale |
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Metallurgical Machinery |
Quantity M.T. |
Qty MT / Nos. |
Amt Rs. ‘000’ |
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a) Kiln and
Cooler Plant/ Machinery/Spares |
147 |
147 |
38889 |
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b) Crushing and
Screening Plant/ Machinery/Spares |
122 |
122 |
26224 |
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c) Feeders and
Gates Machinery/Spares |
106 |
106 |
22059 |
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d) Ball
Mill-Machinery/Spares |
49 |
49 |
39869 |
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e) Structural
Steel Work, Engineering, Fabrication and Erection |
94 |
94 |
14246 |
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f) Mineral
Beneficiation Plant/Machinery/Spares |
168 MT /4 Nos |
168 MT / 4 Nos |
562780 |
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Material
Handling and Conveying Plant/Machinery/Spares |
239 MT /24 Nos |
239 MT /24 Nos |
3977199 |
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Coal Washing
Plant/Machinery/Spares |
--- |
--- |
176 |
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Cement
Mill/Plant |
29 |
29 |
2348 |
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Road
Construction Machinery/Spares |
-- |
--- |
--- |
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Pump and Spares |
4960 Nos |
4864 Nos (12 MT /5395
Nos) |
55157 |
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Road
Construction |
---- |
--- |
112649 |
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Water Management
System |
3 nos |
3 Nos |
24147 |
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Port Equipment |
6 Nos |
6 Nos |
165467 |
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Thickener,
Floatation cells and spares |
1187 Nos |
1185 Nos |
105135 |
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954 MT / 6184
Nos |
954 MT /6086 Nos
|
5146345 |
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Excise Duty |
954 MT / 6184
Nos |
954 MT / 6086
Nos |
5020528 |
GENERAL
INFORMATION
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No. of Employees : |
720 |
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Bankers : |
v Bank of India, v State Bank of India, Address: Mumbai – 400 021, Maharashtra, India v Canara Bank v United Bank of India v UCO Bank v Oriental Bank of Commerce v Indian Overseas Bank v Union Bank of India v ICICI Bank Limited v ING Vysya Bank Limited v Axis Bank v Karur Vysya Bank v ANZ Grindlays Bank Limited Address: Kolkata – 700 001, West Bengal, India |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
Khaitan & Company Chartered Accountant |
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Memberships: |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
Ø Williamson
Magor Group Companies Ø G. P. Birla
Group Companies Ø Eriez MBI India
Limited, Bangalore, Karnataka SUBSIDIARIES McNally Bangalore Industries
Limited Hoodi Whitefield Road, P. O. Whitefield, Bangalore – 560 056,
Karnataka, India Tel. No. 91-80-845 2596 / 2597 /
2598 / 2599 Fax No. 91-80-845 2764 E-Mail mbil.blr@smy.sprintrpg.ems.vsnl.net.in,
mbl@mcnallyblr.com Telegram : MINPRO WHITEFIELD Ø Erotev – Waagner
Biro (EWEB) Limited, Budapest EWB-MBE Waagner Biro Limited Ø
EWB – MBE International Kornyezetvedelmi Kft, Hungary (Formerly EWB – MBE International
Environmental Limited) Ø
EWB –MBE
International Kornyezetvedelmi Kft,
Hungary - EWB Kornyezetvedelmi Kft, Hungary |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity shares |
Rs. 10/- each |
Rs.400.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
26779700 |
Equity shares |
Rs. 10/-
each |
Rs.267.797
millions |
Note:
Of the above
Shares:
i) 486100 Shares were allotted as fully paid-up pursuant to Contracts
without payments being received in cash
ii) 1257930 Shares were issued as fully paid-up Bonus Shares by
capitalization of General Reserve
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
267.797 |
264.618 |
197.832 |
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2] Share Application Money |
20.777 |
0.000 |
0.000 |
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3] Reserves & Surplus |
673.978 |
523.952 |
163.238 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
962.552 |
788.570 |
361.070 |
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LOAN FUNDS |
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1] Secured Loans |
706.693 |
795.415 |
604.480 |
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2] Unsecured Loans |
466.209 |
0.000 |
9.900 |
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TOTAL BORROWING |
1172.902 |
795.415 |
614.380 |
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DEFERRED TAX LIABILITIES |
7.022 |
11.016 |
11.571 |
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TOTAL |
2142.476 |
1595.001 |
987.021 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
451.962 |
527.405 |
425.695 |
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Capital work-in-progress |
113.689 |
1.717 |
8.137 |
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INVESTMENT |
46.137 |
32.094 |
12.219 |
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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 |
188.169
|
118.023
|
135.037 |
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Sundry Debtors |
2603.738
|
1895.741
|
1319.410 |
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Cash & Bank Balances |
544.500
|
153.916
|
178.815 |
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Other Current Assets |
0.000
|
0.000
|
0.019 |
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Loans & Advances |
669.867
|
574.156
|
397.964 |
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Total Current Assets |
4006.274
|
2741.836 |
2031.245 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
2431.502
|
1683.576
|
1454.206 |
|
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Provisions |
44.084
|
24.475
|
36.069 |
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Total Current Liabilities |
2475.586
|
1708.051 |
1490.275 |
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Net Current Assets |
1530.688
|
1033.785 |
540.970 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2142.476 |
1595.001 |
987.021 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
5139.789 |
3347.055 |
2849.648 |
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Other Income |
56.227 |
5.067 |
0.000 |
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Total Income |
5196.016 |
3352.122 |
2849.648 |
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Profit/(Loss) Before Tax |
200.833 |
65.994 |
34.524 |
|
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Provision for Taxation |
25.787 |
13.464 |
8.271 |
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Profit/(Loss) After Tax |
175.046 |
52.530 |
26.253 |
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Export Value |
150.596 |
49.969 |
6.190 |
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Import Value |
81.109 |
119.206 |
91.295 |
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Expenditures : |
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Materials |
3179.106 |
1973.727 |
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Outsourcing Expenses to outsiders for job
Work Expenses |
922.649 |
631.224 |
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Advance / Debts written off/ provision /
liabilities written back |
743.292 |
558.652 |
2815.124 |
|
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Loss on sale of fixed assets |
11.269 |
6.674 |
|
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|
Interest and finance charges |
31.408 |
0.970 |
|
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Depreciation & Amortization |
17.219 |
27.285 |
|
|
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Other Expenditure |
90.240 |
87.373 |
|
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Total Expenditure |
4995.183 |
3285.905 |
2815.124 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
1108.500
|
1152.100
|
1181.300
|
|
Other Income |
3.000
|
5.400
|
0.600
|
|
Total Income |
1111.500
|
1157.500
|
1181.900
|
|
Total Expenditure |
1017.400
|
1069.200
|
1080.100
|
|
Operating Profit |
94.100
|
88.300
|
101.800
|
|
Interest |
25.500
|
22.700
|
24.200
|
|
Gross Profit |
68.600
|
65.600
|
77.600
|
|
Depreciation |
5.000
|
4.800
|
5.500
|
|
Tax |
19.800
|
0.800
|
22.600
|
|
Reported PAT |
43.800
|
60.000
|
49.500
|
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.27 |
1.36 |
1.51 |
|
Long Term Debt-Equity Ratio |
0.56 |
0.55 |
0.42 |
|
Current Ratio |
1.27 |
1.18 |
1.04 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
7.16 |
4.77 |
4.60 |
|
Inventory |
33.70 |
26.77 |
23.65 |
|
Debtors |
2.29 |
2.11 |
2.58 |
|
Interest Cover Ratio |
2.08 |
1.44 |
1.30 |
|
Operating Profit Margin(%) |
7.01 |
7.17 |
5.92 |
|
Profit Before Interest And Tax Margin(%) |
6.68 |
6.36 |
5.14 |
|
Cash Profit Margin(%) |
3.35 |
2.36 |
1.67 |
|
Adjusted Net Profit Margin(%) |
3.02 |
1.55 |
0.89 |
|
Return On Capital Employed(%) |
19.57 |
17.60 |
17.63 |
|
Return On Net Worth(%) |
20.06 |
10.10 |
7.69 |
LOCAL AGENCY
FURTHER INFORMATION
DIRECTOR REPORTS:
HIGHLIGHTS
The key highlights
of the operations for the £ financial year 2006-07 over the previous year are:
·
Total Income increased by 55%
· Earnings before Interest Depreciation and Taxes increased by 71%
· Profit before Taxes increased by 204%
· Earnings per Share increased by 192%
The company has also
participated in a large number of tenders in RINL and SAILIISCO plant at
Burnpur and hope to be successful in some of these tenders.
PRODUCTS DIVISION
MANUFACTURING
During the review
period both Kumardhubi Works and Bangalore Works have been fully utilized and
have achieved targeted results with respect to the order book, sales and
operating profits. Products Division has initiated innovative actions to reduce
delivery time for its products, more particularly for Stacker cum Bucket Wheel
Reclaimer for Paradeep Port Trust and Neyveli Lignite Corporation, Gravity
Roller Conveyor and Power Roller Conveyor for Vedanta. Kumardhubi Works
continued to serve various industries with existing products range like Mill,
Crushers, Screens. A few to name are TISCO, MECON/NLC, DEMPO, RAJLAKSHMI
MINERALS, JINDAL STEEL and POWER LIMTED (JSPL), etc. During the review period
Kumardhubi Works have restarted manufacturing of Pressure Vessels for Projects
Division as well as for other customers. Bangalore Works also continued to
report excellent results and have emerged as one of the major suppliers of
Process Equipment like Thickener and Pumps. Record number of 24 Thickeners
Floatation Cells and Spares were sold during the review
period. As a
diversification during 2006-07, we also entered into tie-up with M/S. LAROX of
Finland and Bangalore unit would be responsible for promoting sale of these
Filter.
EXPORTS
During the review
period both Kumardhubi and Bangalore Works have been executing orders for
export market. To highlight the one 74.1 M long Apron Conveyor against orders
received from SOLIOS, France. It may be noted that this is probably the largest
Apron Conveyor in the world.
CAPACITY EXPANSION
Substantial
expansion programme has been undertaken for both at Kumardhubi Works and
Bangalore Works which are under implementation. Kumardhubi Works Unit II
expansion, Phase I has been completed and the work is under progress for the
Phase II.
In addition
Kumardhubi Works is investing substantially in Machine Tools to augment the
machining capability and would be adding up state of the art Machining centers
for both Unit I and Unit II. Orders for these machine tools have already been
placed and are expected to be in place by second quarter 2007. Bangalore Works
have also undertaken expansion initiative and have procured 4 acres of land for
constructing a new workshop. Projects Division has already expanded its
resource in terms of Engineering and Project execution capabilities to attain
annual turnover of Rs. 15000.000 millions. EWB - MBE INTERNATIONAL KORNYEZETVEDELMI KFT EWB LIMITED The
performance of the subsidiaries during the year is satisfactory. The unit has a
healthy order book position. The Company continues to receive valuable
technical support in Dry Ash Handling Technology which is used in power
projects.
PROJECT FUNDING
During the year under
review, the Company issued 4.5% Foreign Currency Convertible Bond worth US$ 10
million, which is convertible at Rs.143/- per share at the option of the
bondholders, within the tenure of the bonds. Out of the above issue an amount
of US$ 1 million have since been converted by the bondholders. The fund is
being utilized for meeting the ongoing capital expenditures.
MANAGEMENT
DISCUSSION and ANALYSIS REPORT
INDUSTRY
STRUCTURE AND DEVELOPMENT
The economic survey
of 2006-07 has estimated 9.2% growth rate for the 2006-07. The Union Budget
2007-08 forecasts the same growth level for the year 2007-08. Manufacturing
sector with an estimated growth rate of 11.3% and construction activity with an
estimated growth of 9.4% has been identified as two major growth drivers. Under
the "Power for all by 2012" programme of Government of India, total
capacity addition envisaged during 10th and 11th plan shall be 100000 MW and
the planned expenditure in power sector is Rs.3526 billion which includes
Rs.779 billion investment in Coal based Thermal Sector, where capacity
expansion is targeted by 20,000 MW within 2012. The estimated investment during
2007- 12 in Steel Sector alone is Rs.820 billion, in Non-ferrous Metal the
estimated investment is Rs.221 billion and in Coal, Lignite and other mining
sectors the estimated investment has been estimated at Rs.145 billion. In Port
Sector the estimated investment is Rs.558 billion during the period 2007-2012.
Based on the above scenario, the estimated size of the total construction and
manufacturing equipment shall be Rs.4.2 billion by the end of 2010. The amount
spent on construction as a total percentage as to total GDP has increased to
6.12% in 2007 from 5.7% in 2001.
The Company operates
as a major player in all the above sectors and is fully geared to take the
benefit of growth opportunities which shall prevail in these sectors.
SEGMENTWISE OR
PRODUCT WISE PERFORMANCE
The Company is
engaged in turnkey projects in infrastructure and related manufacturing
activities and therefore the question of segment-wise performance does not
arise.
OUTLOOK
Considering the
buoyant market situation and expected investment in infrastructure sector
across the country, the Company expects strong double digit growth in future
years. Effective steps have already been taken to mobilize resources to cater
to the growth plan. The Company has already raised adequate funding and has
fixed up access to funding for its future plans. The manufacturing capacity in
its Plants at Kumardhubi and Bangalore has already been expanded to accommodate
expanded activities. The Company has added adequate manpower across the line to
handle to its growth.
FINANCIAL
PERFORMANCE
During the year, the
Company recorded commendable growth in its performance both in terms of sales
and profitability. While the total income of the Company has grown up by 55%,
the Profit Before Tax has gone up by 204% and earnings per share has up by
192%, i.e. from Rs.2.26 per share to Rs.6.60 per share. Based on the business
scenario within the country and Company's expanded capability, the Company has
set a higher benchmark of performance during the year 2007-08. The Board
expects this growth trend, both in terms of profitability and sales, to be
maintained in the coming years.
Fixed Assets:
· Land (Freehold And Leasehold),
· Buildings
· Plant and Machinery
· Vehicles,
· Furniture and Fixtures,
· Refrigerators and Air Conditioners,
· Office Equipment,
· Telephone Plant
· Cooking appliances
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. 41.38 |
|
UK Pound |
1 |
Rs. 80.76 |
|
Euro |
1 |
Rs. 63.89 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|