MIRA
INFORM REPORT
|
Report Date : |
12.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
PREMIER POLYFILM
LIMITED |
|
|
|
|
Registered Office : |
Flat No. 305, III
Floor, Elite House, 36, Community Centre, Kailash Colony Extension
(Zamroodpur), New Delhi – 110 048 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
17.07.1992 |
|
|
|
|
Com. Reg. No.: |
11-49590 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U25209DL1992PLC049590 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELP08818F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACP0371Q |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The company's shares are listed on stock exchanges. |
|
|
|
|
Line of Business : |
The company is engaged in manufacture of PVC films/sheets. |
RATING &
COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Sick Company |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Unknown |
|
|
|
|
Comments : |
Financial
position of the company is poor. Ways and means are difficult. The company is
a sick unit. It can be considered for any business dealings at safe and secured trade terms and conditions only. |
LOCATIONS
|
Registered Office : |
Flat No. 305, III
Floor, Elite House, 36, Community Centre, Kailash Colony Extension
(Zamroodpur), New Delhi – 110 048, India. |
|
Tel. No.: |
91-11-26226481 |
|
Fax No.: |
91-11-26226482 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate
Office : |
C-4, Commercial Centre Safdarjung Development Area, New
Delhi 110 016, India |
|
|
|
|
Factory: |
40/1A, Site IV, Sahibabad Industrial Area, Sahibabad,
Ghaziabad – 201 010, Uttar Pradesh, India. |
|
Tel. No.: |
91-120- 2896986/2896988 |
|
Mobile No.: |
91- 9811113059 |
|
Fax No.: |
91-120- 2896982 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. Nand Lal Sanghai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K K Sinha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manohar Lal Baheti |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amar Nath Goenka |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Om Prakash Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A K Sureka |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Jaspal Singh
Marwah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kamlesh Kumar
Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manoj Kumar
Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. P. Jain |
|
Designation : |
Executive
Director |
|
|
|
|
Name : |
Mr. Amar Nath
Goenka |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. N. K.
Bhandari |
|
Designation : |
Company Secretary
|
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders (31.03.2007) |
No. of Shares |
Percentage of
Holding |
|
Promoter |
3477100 |
10.258% |
|
Mutual Funds |
687650 |
2.029% |
|
Financial Institutions & Banks |
891900 |
2.631% |
|
Foreign Institutions |
1860000 |
5.487% |
|
Body Corporate |
21879650 |
64.547% |
|
Individual (Public Limited Liability Company. The company shares are
listed on the Stock Exchange. And NR) |
5100689 |
15.048% |
|
Total
|
33896989 |
100.00% |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in manufacture of PVC films/sheets |
|
|
|
|
Products : |
PVC films/sheets |
PRODUCTION STATUS (as on 31.03.2007):-
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
PVC films/sheets |
M.T. |
16200 |
16200 |
10648 |
Stock of finished
goods:-
|
Item |
Unit |
As on 01.04.2006 |
As on 31.03.2007 |
||
|
|
|
Qty |
Value (Rs. in millions) |
Qty |
Value (Rs. in millions) |
|
PVC films/sheets |
Mtr. Sqm |
493468 |
|
265658 |
|
|
|
|
4102 |
24.438 |
3243 |
8.860 |
Sales Items :-
|
Item |
Unit |
31.03.2007 |
31.03.2006 |
||
|
|
|
Qty |
Value
|
Qty |
Value
|
|
PVC films/sheets |
Mtr./ Sqm |
16872690 |
|
17372289 |
|
|
|
Kgs |
116873 |
492.562 |
209419 |
423.365 |
|
Others |
|
---- |
3.872 |
|
9.516 |
|
|
|
|
496.434 |
|
432.881 |
Include 62655 Sq.Mtrs for conversion in Zed Grey
and Base LAYER (Previous Year Nil Sq. Mtrs)
GENERAL
INFORMATION
|
No. of Employees : |
250 |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
v
Oriental
Bank of Commerce, Industrial Finance Branch, H – 15, Connaught Circus, New
Delhi – 110 001, India. v
Canara Bank,
S. D. Area, New Delhi – 110 016, India. v
UTI Bank
Limited, Statesman House, Ground Floor, 148, Barakhamba Road, New Delhi – 110
001, India. |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
Notes: The Term Loan
obtained by the Company from Industrial Development Bank of India (now
Stressed Assets Stabilization Fund) is secured by a first charge by way of mortgage
of the Company's immovable properties, both present and future and a first
charge by way of hypothecation of Company's movable properties, both present
and future in their favour except book debts and subject to prior charge to
be created on specified movables in favour of Company's bankers for securing
the borrowing for working capital requirement in the ordinary course of
business. The Term Loan is further secured by the personal guarantees of Mr.
Amar Nath Goenka, Managing Director and Mr. A.K. Sureka. It is informed
by Industrial Development Bank of India that the credit facilities extended
to and availed of by the company from time to time has been absolutely
transferred to Stressed Assets Stabilization Fund (SASF) along with all of IDBI's right,
title and interest in all agreements, deeds and documents in relation to or
in connection with the said facilities. 2. The Company
has taken Vehicle Loans from banks which are secured by way of hypothecate of
the vehicles. 3. Short Term
Loan from banks is secured by hypothecation of Raw Materials,
Work-in-Progress, Finished Goods, Stores and Spares and Book Debts and is
secured by second charge of mortgage over immovable properties of the
company. These loans are collaterally secured by personal guarantees of
Mr. Amar Nath Goenka, Managing
Director and Mr. A.K. Surek |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Banking Relations : |
Unknown |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Auditors : |
De & Bose Chartered Accountants |
|||||||||||||||||||||||||||||||||
|
Address: |
8/2, Kiran Sankar
Roy Road, 2nd Floor, Room No. 1 & 18, Kolkata – 700 001, West
Bengal, India. |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Associates: |
v
Premier
Polyplast & Processers Limited v
D. L. Millar
Exports Limited v
D L Millar
and company Limited v
Haryana
Woven Sack Private Limited v
H.S.
Enterprises v
1000 Plus
Trading Inc. |
|||||||||||||||||||||||||||||||||
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60000000 |
Equity Shares |
Rs. 2.50/- each |
Rs.150.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
34830000 |
Equity Shares |
Rs. 2.50/- each |
Rs.87.075
millions |
Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
34823639 |
Equity Shares |
Rs. 2.50/- each |
Rs.87.059
millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
33896989 |
Equity Shares |
Rs. 2.50/- each |
Rs.84.742
millions |
|
Add: |
Shares Forfeited |
|
Rs. 1.158
millions |
|
|
|
Total |
Rs.85.900 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
85.900 |
85.900 |
69.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
16.700 |
|
|
3] Reserves & Surplus |
84.573 |
84.573 |
84.573 |
|
|
4] (Accumulated Losses) |
[750.579] |
[752.485] |
[742.796] |
|
|
NETWORTH |
[580.106] |
[582.012] |
[572.323] |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
686.288 |
706.505 |
712.214 |
|
|
2] Unsecured Loans |
51.907 |
24.539 |
22.973 |
|
|
TOTAL BORROWING |
738.195 |
731.044 |
735.187 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
158.089 |
149.032 |
162.864 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
150.651 |
165.394 |
180.992 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
44.203 |
53.089 |
54.754
|
|
|
Sundry Debtors |
42.498 |
28.643 |
19.733
|
|
|
Cash & Bank Balances |
13.360 |
2.342 |
0.739
|
|
|
Other Current Assets |
0.000 |
0.000 |
0.000
|
|
|
Loans & Advances |
13.713
|
17.567 |
17.463
|
|
Total
Current Assets |
113.774
|
101.641 |
92.689 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
105.444
|
117.526 |
111.469
|
|
|
Provisions |
0.892
|
0.477 |
0.000
|
|
Total
Current Liabilities |
106.336
|
118.003 |
111.469 |
|
|
Net Current Assets |
7.438
|
[16.362] |
[18.780]
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.652 |
|
|
|
|
|
|
|
|
TOTAL |
158.089 |
149.032 |
162.864 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
461.816 |
397.237 |
445.762 |
|
|
Other Income |
7.403 |
6.940 |
0.000 |
|
|
Total Income |
469.219 |
404.177 |
445.762 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2.320 |
[9.212] |
[62.992] |
|
|
Provision for Taxation |
0.415 |
0.477 |
0.000 |
|
|
Profit/(Loss) After Tax |
1.905 |
[9.689] |
[62.992] |
|
|
|
|
|
|
|
|
Export Value |
209.533 |
137.001 |
141.682 |
|
|
|
|
|
|
|
|
Import Value |
21.028 |
30.182 |
18.440 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
338.648 |
289.816 |
|
|
|
Manufacturing Expenses |
38.947 |
43.590 |
|
|
|
Administrative Expenses |
13.949 |
14.991 |
508.755 |
|
|
Selling & Distributions Expenses |
26.555 |
21.857 |
|
|
|
Salaries, Wages, Bonus, etc. |
24.440 |
22.218 |
|
|
Total Expenditure |
442.539 |
392.472 |
508.755 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
126.100 |
165.700 |
131.400 |
195.900 |
|
Other Income |
2.000 |
1.400 |
0.000 |
0.000 |
|
Total Income |
128.100 |
167.100 |
131.400 |
195.900 |
|
Total Expenditure |
118.700 |
146.300 |
115.900 |
186.900 |
|
Operating Profit |
9.400 |
20.800 |
15.500 |
9.000 |
|
Interest |
1.500 |
1.500 |
1.600 |
1.200 |
|
Gross Profit |
7.900 |
19.300 |
13.900 |
7.800 |
|
Depreciation |
4.200 |
4.200 |
4.200 |
4.200 |
|
Tax |
0.100 |
0.100 |
0.100 |
0.100 |
|
Reported PAT |
3.600 |
15.000 |
9.600 |
3.500 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
0.97 |
0.85 |
0.78 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
1.49 |
1.31 |
1.29 |
|
Inventory |
10.20 |
8.02 |
8.36 |
|
Debtors |
13.96 |
17.93 |
20.24 |
|
Interest Cover Ratio |
1.30 |
-1.56 |
-0.08 |
|
Operating Profit Margin(%) |
5.38 |
2.54 |
2.80 |
|
Profit Before Interest And Tax Margin(%) |
2.01 |
-1.29 |
-1.07 |
|
Cash Profit Margin(%) |
3.75 |
1.59 |
-10.89 |
|
Adjusted Net Profit Margin(%) |
0.38 |
-2.24 |
-14.76 |
|
Return On Capital Employed(%) |
1.89 |
0.00 |
0.00 |
|
Return On Net Worth(%) |
-0.92 |
0.00 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
The company has been getting repeat orders from almost all countries to whom exports were made earlier. Further, the company has procured exports orders from Europe, Latin America and Far Eastern Countries. The export potential is going to increase to the new areas of markets available.
In the domestic fronts, the company has been able to develop materials for the companies like Escorts, Maruti Udyog, Herohonda, Telco etc. which is providing regular market for the company's products.
Bio Data:
Incorporated in Jul.'92, the company was promoted by A N
Goenka and A K Surekha.
The company tapped the capital market by making rights issue in May '95 to
part-finance another calendering line at the existing factory premises with an
installed capacity of 9600 tpa to manufacture wide-width PVC flooring,
sheeting, PVC linoleum floorings, canal lining, leather cloth topping, shower
curtains and other PVC products.
After expansion in Oct.'95, the total capacity was increased to 16,200 tpa. In
the new project, the company manufactures special PVC films for lining ponds
and canals to prevent water seepage. The company is the first in India to
introduce this product. The company exports its products to the CIS countries,
Srilanka, South Africa, Burma and Bangladesh. The company proposes to enter new
markets in countries like America, Australia and Saudi Arabia. The company
plans to export PVC fabricated items like shower curtains, table covers, suit
covers, etc, which have much higher value additions.
During 1999-2000, IDBI - the Operation Agency appointed by the BIFR is
presently under consideration and finalisation of rehabilitation package for
revival of the company. The Rehabilitation Scheme is likely to received
soon.
OPERATIONS
During the period
under review the Company produced 10648 M.T. of PVC flooring, Sheetings, Films
etc. as against. 9728 M.T. produced during the previous year, achieving a
capacity utilisation of around 66 % as compared to around 60% in the previous
year. The Company could achieve higher capacity utilisation but for non
availability of Working Capital facility from Banks.
QUALITY CONTROL
The Company
continues to hold prestigious ISO 9001:2000 certification of quality as
manufacturer and exporter of PVC products namely Marbled (Contract), Printed
and Technical Flooring, Leather Cloth, Sheeting, Humidity Barrier and Geo
Membrane.
Bureau of Indian
Standards has granted BIS certification Mark (ISI) for Unbacked Flexible PVC
Flooring, Sheets or rolls and tiles for 1.5 mm and 2.00 mm thickness vide ISO
No. 3462:1986.
FUTURE PROSPECTS
Despite facing
tough competition from imported finished goods, the products of the company are
well received in the market and as such market is not a constraint.
REFERENCE TO BOARD
FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION (BIFR)
The proposal of
One Time Settlement scheme (OTS) has been approved by all the secured creditors
at Rs.90.000 millions. The company is making payment as per repayment schedule.
The full settlement is payable by the company to all the Secured creditors by
31/03/2008 except UTI Bank Limited whose last installment is payable by 15th
May, 2008. The Net Worth of the company will become positive once final payment
of OTS is made to the Secured creditors. Modified Draft Rehabilitation Scheme has
been submitted to the Hon'ble BIFR for approval.
OTHER
DETAILS:
|
Contingent
liabilities not provided for |
31.03.2007 |
31.03.2006 |
|
|
(Rs.
in millions) |
|
|
Unredeemed Bank guarantee |
0.292 |
3.292 |
|
Bonds Executed in favour of Central Excise Department |
15.000 |
15.000 |
Stressed Assets
Stabilization Fund (SASF), UTI Bank Limited, Oriental Bank of Commerce and
Canara Bank - the Secured Creditors have agreed to settle their loans on One
Time Settlement (OTS) basis. SASF, UTI Bank Limited., Oriental Bank of Commerce
and Canara Bank have conveyed their approvals on OTS Proposal on the following
basis:
|
Secured
Creditors |
Crystalised
Loan Amount (Rs .In Millions ) |
Amount
Settled Under OTS (Rs. In Millions) |
OTS
Amount To Be Paid In Installments By |
|
SASF |
116.927 |
49.552 |
15.03.2008 |
|
Axis Bank |
25.486 |
10.801 |
15.05.2008 |
|
Oriental Bank of commerce |
43.840 |
18.579 |
01.01.2008 |
|
Canara Bank |
26.120 |
11.069 |
31.03.2008 |
The OTS Proposal
has been approved by all Secured Creditors. The effect of OTS will be reflected
in the accounts for the year in which full payment of OTS is made as OTS is
conditional.
Interest on OTS amount
which is effective from April 1, 2006 is charged in the accounts @8% p.a. on
simple interest basis.
Segment Reporting
:
The-Company is
mainly engaged in manufacturing and sale of PVC Films and Sheets. From the
operations of the Company, it is considered as a single business product and
accordingly segment reporting on business segment is not required. The company
has identified its geographical segments based in the areas in which the
customers of the company are located. However, it is not feasible to maintain
the accounts on the basis of geographical segments. Hence, segment reporting on
geographical segments is not prepared.
FIXED ASSETS:
· Land (Leasehold)
· Buildings
· Plant and Machinery
· Electrical Installations
· Furniture, Fixture and Office equipments, etc
· Vehicles
AS PER WEBSITE:
The company and ISO
9002 company with certification from TUV management services of Germany is a
well established company, manufacturing and exporting pvc floor covering,
pvc flooring manufacturer, pvc shower curtains, pvc flooring, shower curtains
manufacturer printed flooring, anti-static flooring, conductive flooring,
PVC geomembrane/aqua lining, artificial leather (car seat covers, roof linings,
floor mat), flexible films and sheetings etc.
The company is
managed by promoters having vast experience in this line. The factory and the
office {including Marketing and Exports} are located at Sahibabad (Ghaziabad),
a distance of 20 minutes from New Delhi, India.
The Factory houses two modern Calendering lines along with printing, lamination
and tile cutting facilities, all imported from U.S.A.
The production capacity of the plant is 16200 MT per year and all the products
are manufactured conforming to well accepted quality standards worldwide. There
is a well equipped laboratory where regular and continued R and D assignments
are undertaken.
They have a well spread out dealers - distributors network and their products
are well established in the domestic as well as overseas markets under the
brand name of "POLYFLOOR".
They have as their clients some of the most reputed institutions like The
Reserve Bank of India, Indian Railways, Indian Armed Forces and many other
reputed Organization.
RECYCLED PVC COMPOUND/PVC SCRAP Manufacturer and Exporters Having
well-equipped laboratory. Over the years they have developed good experience in
PVC
Products:
Decorate the house in the most practical and cost effective solution. They have a well established set up for manufacturing quality pvc floor covering, shower curtains made by their base materials. They endeavour to deliver quality, with the best prices in the industry. Their range of products in this category include:
·
PVC Shower Curtains
·
PVC Table Covers
·
PVC Car Seat Covers
In addition to the above, they also manufacture as per the requirements Washer/Dryer covers, PVC Flooring, Aprons, Chair Cover, Pizza Delivery Bags, Bun Pack Covers, Automobile tool Kit Pouches, Spare Tyre Covers etc.
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 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 |
6 |
|
PAID-UP CAPITAL |
1~10 |
- |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
- |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
- |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
6 |
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 |
|