MIRA
INFORM REPORT
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Report Date : |
28.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
BHARTIYA INTERNATIONAL LIMITED |
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Registered Office : |
E-52 New Mangalpuri Mandi Road, (Mehrauli), New Delhi-110030 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Year of Establishment : |
07.01.1987 |
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Com. Reg. No.: |
26607 |
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CIN No.: [Company
Identification No.] |
L74899DL1987PLC026607 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELB06541D |
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PAN No.: [Permanent
Account No.] |
AAACB0728M |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are listed on the
Stock Exchange. |
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Line of Business : |
Manufacture and Sale of Handmade Carpets and Leather Garments. |
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 3800000 |
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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. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
E-52 New Mangalpuri Mandi Road, (Mehrauli), New Delhi-110030, India |
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Tel. No.: |
91-11-26808177, 26803201-02 |
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Fax No.: |
91-11-26803485 |
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E-Mail : |
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Website : |
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Area : |
Owned - medium sized |
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Head Office : |
25, R.B. Rattan Chand Road, Amritsar-143 001, Punjab, India |
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Factory 1 : |
Factory (Leather Garments) No. 27/2, Village Gottigere, Uttarahalli Hobli, (Bannerghata Road), Bangalore, India |
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Area : |
53.150 sq ft (Owned) |
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Location : |
Industrial |
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Factory 2 : |
330, EVR Periyar High Road, Rakhi Plaza, Aminji Karai, Chennai-600 029. India |
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Factory 3 : |
Factory (Leather Garments) No. 27/ 2, Village Gottigere, Uttarahalli Hobli, (Bannerghata Road), Bangalore, India |
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Overseas Offices (China): |
World Fashion Trade Limited, Room 801, 2nd Units, Tower 28,
Jinzhonglu Garden, 28# Yangban Road, Hangzhou, China |
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Tel. No.: |
86-571-86584857 |
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Fax No.: |
86-571-86585057 |
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Overseas Offices (Hong kong): |
World Fashion Trade Limited, Suit 1402, 14/F, 1 Duddell Street,
Central Hong Kong |
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Tel. No.: |
91-852-23763611 |
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Fax No.: |
91-852-27365115 |
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Overseas Offices (Italy): |
Branch: Via G. Amendola, 2, 50058, Signa (F1) Italy, Ultima Italia SRL
Via Dei Tigli, 4, 26010, Casaletto Vaprio (CR), Italy |
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Overseas Offices(Switzerland): |
Ultima, S.A., Rochettes 42, 2012 Auvernier, Switzerland |
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Overseas Offices (U.S.A.): |
BIL Group LIC, 209, West 38th Street (Suit 1010), New York-
10018, USA |
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Branches : |
Located at :- Chenai 330,EVR Periyar High Road, 3rd, Rakhi Plaza, Aminji Karai, Chennai-600029, India |
DIRECTORS
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Name : |
Mr Snehdeep Aggarwal |
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Designation : |
Managing Director |
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Date of Birth/Age : |
10-11-1956 |
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Qualification : |
MA, Economics |
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Experience : |
20 years |
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Date of Appointment : |
07-01-1987 |
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Other
Directorships : |
Y
Bhartiya
Global Marketing Limited. Y
Bhartiya
Realities Private Limited Y
Bhartiya Mines
and Minerals Private Limited Y
Bhartiya
Global Holdings Private Limited Y
Bhartiya
Infotech Private Limited Y
Bhartiya ,
International Holdings, S.A. Y World Fashion Trade Limited |
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Name : |
Mr. Jaspal Sethi |
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Designation : |
Whole Time Director |
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Name : |
Mr. A. K. Gadhok |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
10-03-1947 |
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Qualification : |
B.Com |
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Date of Appointment : |
01-04-1999 |
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Name : |
Mr Shashank |
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Designation : |
Director |
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Name : |
Mr. Ramesh Bhatia |
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Designation : |
Director |
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Name : |
Mr. C. L. Handa |
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Designation : |
Director |
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Date of Birth/Age : |
3-03-1937 |
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Qualification : |
B.Sc,CAIIB |
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Date of Appointment : |
26-05-2004 |
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Other
Directorships : |
Y
J&Jleather
Enterprises Limited Y
International
Print O Pack Limited Y
Sobhagya
Capital Options Ltd. Y
Sobhagya
Securities Limited Y
Gora Mai Hari
Ram Limited |
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Name : |
Mr. Sandeep Seth |
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Designation : |
Director |
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Address : |
J-101, Sainik Farms,
New Delhi – 110 062, India |
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Date of Birth/Age : |
26-10-1964 |
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Qualification : |
Chartered Accountant |
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Date of Appointment : |
28-02-2002 |
KEY EXECUTIVES
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Name : |
Ms. Deepti Gambhir |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters Holding |
1470412 |
20.20 |
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Persons acting in concert |
1187224 |
16.31 |
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Mutual Funds |
3300 |
0.05 |
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Banks |
600 |
0.01 |
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NRIs/OCBs |
163281 |
2.24 |
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Indian Corporate Bodies |
1522264 |
20.91 |
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Indian Public |
2931767 |
40.28 |
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Total |
7278848 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture and Sale of Handmade Carpets and Leather Garments. |
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Products : |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Purchasing : |
L/C or D/P terms |
PRODUCTION STATUS
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Particulars |
Unit |
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Actual
Production |
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Leather Garment |
PCS |
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249014 |
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Finished Leather |
PCS |
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-- |
LICENSE CAPACITIES
AND PRODUCTION
The company has been issued a letter of intent by secretariat of
industrial approvals, Department of Industrial development, Ministry of Industry
for manufacture of Leather Garments with capacity of 54,000 Nos. per annum at
their current factory in Bangalore. In view of the nature of the garments
industry the installed capacity with specific reference to numbers of garments
pieces is not ascertainable.
GENERAL
INFORMATION
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Suppliers : |
Y S.A & Carpets Y Sheikh Rahim & Sons Y S. R. Carpets Y O.T.C. Agencies Y Kapoor Brothers Y Ashish Brothers Y E.H. Turel & Company, Japan Y Emerald Leather Overseas Y Mathi Leathers Y Ultima Italia Srl Y World Fashiion Trade Limited Y J and J Leather Enterprises Limited |
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Customers : |
Y Glide International, Germany Y Chandra Carpet Private Limited, India Y Bheramand GmbH, Germany Y NCTTO, Switzerland Y Mehrimpex-N-Mehra, Switzerland Y Wolownik Les Collections S.A., Spain Y Metrix XXI, S. L. Y World Fashion Trade Limited Y Ultima Italia Srl Y BIL Group, LLC Y Ultima S. A. Switzerland |
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No. of Employees : |
3000 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sushil Poddar and Company Chartered Accountant |
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Address : |
New Delhi |
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Associates : |
Ø Bhartiya Prakash Leather Ø Goldline Carpet Private Limited Ø Goldline Builders Private Limited Ø Bhartiya Urban Infrastructure and Land Development Company Private Limited Ø Bhartiya Developers Consortium Private Limited Ø Bhartiya Realty and Infrastructure Private Limited |
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Subsidiary Companies : |
Domestic
Overseas
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CAPITAL STRUCTURE
As on 31.03.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1200000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 Millions |
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500000 |
Preference Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
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Total |
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Rs. 170.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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7278848 |
Equity Shares |
Rs. 10/-
each |
Rs. 72.788
Millions |
Of these :
a) 500,000 (Previous Year 440,000) equity shares of Rs. 10/- each have
been allotted during the year, at a premium of Rs. 907- per share to the
Promoter and their Associate Companies on conversion of Preferential Share
Warrants.
b) 500,000 (Previous Year Nil) equity shares of Rs. 107- each have been
allotted on during the year, at a premium of Rs. 1 607- per share to the
Non-Promoters
c) 2,089,308 equity shares of Rs. 107- each were allotted as bonus
shares by capitalisation of the General Reserve
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 |
72.788 |
62.788 |
58.400 |
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2] Advance Subscription |
14.350 |
10.850 |
0.000 |
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3] Share Subscription Money |
52.650 |
0.000 |
0.000 |
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4] Reserves & Surplus |
813.372 |
653.019 |
582.300 |
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
953.160 |
726.657 |
640.700 |
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LOAN FUNDS |
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1] Secured Loans |
550.919 |
286.191 |
100.400 |
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2] Unsecured Loans |
200.000 |
200.00 |
0.000 |
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TOTAL BORROWING |
750.919 |
486.191 |
100.400 |
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DEFERRED TAX LIABILITIES |
14.806 |
12.956 |
0.000 |
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TOTAL |
1718.885 |
1225.804 |
741.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
129.692 |
131.105 |
129.100 |
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Capital work-in-progress |
3.378 |
2.196 |
0.000 |
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INVESTMENT |
551.240 |
229.531 |
220.500 |
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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 |
274.257 |
257.099 |
196.700 |
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Sundry Debtors |
102.019 |
51.663 |
43.600 |
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Cash & Bank Balances |
267.080 |
102.996 |
62.100 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
624.077 |
595.505 |
209.000 |
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Total
Current Assets |
1267.433 |
1007.263 |
511.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
183.804 |
104.888 |
89.300 |
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Provisions |
49.054 |
39.403 |
30.600 |
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Total
Current Liabilities |
232.858 |
144.291 |
119.900 |
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Net Current Assets |
1034.575 |
862.972 |
391.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1718.885 |
1225.804 |
741.100 |
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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 |
1159.177 |
904.019 |
885.700 |
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Export Incentives |
68.077 |
51.037 |
0.000 |
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Other Income |
21.465 |
4.358 |
64.200 |
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Total Income |
1248.719 |
959.414 |
949.900 |
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Profit/(Loss) Before Tax |
69.443 |
61.645 |
60.900 |
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Provision for Taxation |
19.442 |
19.798 |
11.000 |
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Profit/(Loss) After Tax |
50.009 |
41.847 |
49.900 |
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Earnings in Foreign Currency : |
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Export Earnings |
808.824 |
859.096 |
0.000 |
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Sales at Overseas Trading Office |
0.369 |
1.661 |
0.000 |
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Export Under Merchandising Trade |
299.060 |
75.308 |
0.000 |
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Total Earnings |
1108.253 |
936.065 |
0.000 |
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Imports : |
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Raw Materials |
212.157 |
172.785 |
0.000 |
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Stores & Spares |
0.000 |
0.000 |
0.000 |
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Capital Goods |
0.303 |
2.174 |
0.000 |
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Purchase under Merchandise Trade |
223.358 |
120.397 |
0.000 |
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Total Imports |
435.818 |
295.356 |
0.000 |
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Expenditures : |
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Personal Expenses |
23.292 |
19.716 |
0.000 |
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Manufacturing Expenses |
141.667 |
115.096 |
0.000 |
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Administrative and Selling Expenses |
174.042 |
145.517 |
118.900 |
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Raw Material Consumed |
534.871 |
459.654 |
574.900 |
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Power and Fuel Cost |
0.000 |
0.000 |
2.900 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
113.000 |
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Employees Cost |
0.000 |
0.000 |
18.600 |
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Miscellaneous Expenses |
0.000 |
0.000 |
15.500 |
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Purchases made for re-sale |
299.797 |
125.668 |
0.000 |
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Financial Expenses |
25.871 |
22.9960 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[37.573] |
1.654 |
0.000 |
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Depreciation & Amortization |
7.923 |
7.468 |
0.000 |
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Other Expenditure |
9.386 |
0.000 |
45.200 |
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Total Expenditure |
1179.276 |
897.769 |
889.000 |
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QUARTERLY /
SUMMARISED 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 |
213.300 |
4858.900 |
407.300 |
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Other Turnover |
1.400 |
6.100 |
6.200 |
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Total Income |
214.700 |
495.00 |
413.500 |
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Total Expenditure |
193.000 |
451.000 |
389.700 |
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Operating Profit |
21.700 |
44.000 |
23.800 |
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Interest |
4.200 |
9.300 |
7.100 |
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Gross Profit |
17.500 |
34.700 |
16.700 |
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Depreciation |
2.100 |
2.200 |
2.200 |
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Tax |
3.900 |
6.100 |
4.600 |
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Reported PAT |
11.500 |
26.400 |
9.900 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.77 |
0.43 |
0.25 |
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Long Term Debt-Equity Ratio |
0.53 |
0.29 |
0.10 |
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Current Ratio |
2.63 |
3.18 |
2.70 |
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TURNOVER RATIOS |
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Fixed Assets |
6.58 |
5.36 |
5.75 |
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Inventory |
4.36 |
3.98 |
3.86 |
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Debtors |
15.08 |
18.97 |
19.34 |
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Interest Cover Ratio |
3.63 |
3.15 |
4.88 |
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Operating Profit Margin(%) |
8.95 |
10.82 |
9.42 |
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Profit Before Interest And Tax Margin(%) |
8.26 |
9.99 |
8.65 |
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Cash Profit Margin(%) |
4.99 |
5.45 |
6.40 |
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Adjusted Net Profit Margin(%) |
4.31 |
4.62 |
5.63 |
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Return On Capital Employed(%) |
6.75 |
9.29 |
9.93 |
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Return On Net Worth(%) |
6.24 |
6.16 |
7.87 |
LOCAL AGENCY
FURTHER INFORMATION
History
The company was incorporated on 7th January, 1987 under the style and name of Bhartiya Galecha Private Limited having Company Registration Number 26607. Name was changed to Bhartiya International Private Limited on 9th July, 1993 and converted into a public limited liability company with effect from 18th January, 1994.
Subject initially started with export of carpets and subsequently, diversified into the manufacture and export of high fashion garments. The company has recognised Export House exporting 100% of its production of leather garments and carpets. It exports its products to Germany, Italy, Switzerland, Hungary, U.S.A. and Canada.
The company procures carpets from the main carpet producing areas in the country - Mirzapur / Varanasi belt, Uttar Pradesh; Amritsar and Jaipur. Leather garments are manufactured at in-house manufacturing facilities and dedicated fabrication unit. It set up a modern state-of-the-art facility at Bangalore to manufacture leather garments (installed capacity : 54000 per annum). The entire plant and machinery for the project were imported from Singer Nikko Company, Japan. It came out with a public issue of shares at a premium in October, 1994 to part finance this expansion.
The company had entered into tie-ups with Emerald Leather Overseas and Mathi Leather Tanneries to procure finished leather. It set up a tannery and integrates forward into the production of more value added items, involving a total outlay of around Rs. 250 millions. In 1995-96, the company entered into the leather shoe sector.
The company was synonymous with only the best creation in designer quality leather apparels. It defines style and finesse to make each product a collector’s item that is comparable with the best in the world today company received the prestigious “National Export Award” from the President of India. It also received an award from Council for Leather Exports for showing commendable performance among the exporters in the highest category of leather garment exports. The company has plant to design and create more fashion product and launch it in fashion capital of the globle.
During the year 2000-01 the company has bagged the Best Export Performance for leather garments and Brand Promotion Award for the year 1999-2000. The company has implemented a modernisation plan to drive the High level of efficiency on ongoing affair.
The company has opened a branch at Italy for marketing high-end garments in Europe under its own label "Monks Italia". In addition, this trading branch patronize various private label customers from all over the world.
The company imports raw materials and other products
Director’s Report
During the year
under review, the Company achieved a turnover of Rs.1227.253 Millions as
against Rs. 955.056 Millions in the previous year registering an increase of
28.50%. Gross profit after interest but before depreciation and tax has
increase to Rs86.752 Millions as
compared to Rs.691.13 in the previous year. Net profit after Tax has increase
to Rs.50.011 Milliions from Rs. 41.847 Millions in the previous year even after
creating provision of Rs. 9.386 Millions for loss on investment in subsidiary
under liquidation.
India has arrived
The Leather Industry global trade reached an epitome of USD 120 billion from
USD 81 billion between 2001 and 2007. In terms of exports however, Indian
Industry stands at just over USD 3 billion, and is placed third in the global
leather industry. Ironically however when compared to China, it is one tenth
its size. This is both good and bad. Good - because, it sets a bench mark
vis-a-vis a World Leader thereby implying hope and leaving an un-bridged
aspiration with us. Bad-because in 1990 India and China were at the same size.
China made rapid strides riding the easy availability of raw material, large
scale Infrastructure, technology, conducive labor policies, low cost of
production and the requisite support from the Government; India on the other
hand failed to
consolidate its position in the leather Industry.
In this backdrop and notwithstanding however, the Indian Leather trade
however stands at an exciting juncture. What they lost yesterday will be our
gain tomorrow. This excitement stems both from Global and domestic situations.
At the Global scene I'm tempted to say "India has arrived". More and
more European and American companies are now looking at China with skepticism
as it has been unable to provide comfort in protecting Intellectual Property
Rights and trade patents. It is faced with antidumping duties and hike in import
duties on the raw material, thus making a case for the global Industry to look
at India as an alternate destination. Many European companies whom they are
closely associated with, and who theyre earlier sourcing up to 95% of their
production from China, now consciously want to shift 30% to India in view of
higher perceive risk and unfavorable costs.
At the domestic front therefore this augers well for the Indian Industry
and the Company Bhartiya International Limited. It now carries distinct
advantage in terms of low cost of manufacturing, availability of raw material
and well developed quality and research and development facilities. The
Industry's exports is expected to reach USD 7 billion by the year 2010-2011.
|
Particulars |
31.03.2007 Rs, in Millions |
|
(a) Estimated value of contract remaining to be executed on capital
Account and not provided for |
0.500 |
|
(b) Contingent liabilities not provided for |
|
|
i) Letter of Credit outstanding - |
117.222 |
|
ii) Standby Letter of credit (SBLC) issued by Companies bankers in
favor of the bankers of its subsidiaries |
|
|
- Ultima Italia SRL |
40.680 |
|
- Ultima S A |
59.346 |
|
- WFT Ltd , Hong Kong |
15.309 |
|
- BIL Group LLC |
-- |
|
iii) Bills discounted with banks |
63.692 |
|
iv) Other Guarantee given by bank-with Corporation Bank |
0.100 |
|
v) Corporate Guarantee given by the company to a bank against
facilities granted by that bank to its wholly owned subsidiaries |
|
|
Bhartiya Global Marketing Ltd |
-- |
|
J & J Leather Enterprises Ltd |
30.000 |
|
Ultima Italia Sri |
35.132 |
|
vi) Income Tax Demand under dispute |
12.225 |
Bhartiya International Holding SA in Luxembourg, a wholly owned subsidiery
of the company is under liquidation and the accumulated loss of Rs.9,385,5287-
as per audited financial statement prepared by liquidator as on 31/10/06 has
been provided in the books of account.The Investment figure as shown in the
Balance sheet is net of provision for losses and has been furthur reduced by
the amount received back from the subsidiary.
The company has a wholly owned subsidiary by the name of BIL Group LLC
in USA . As per the incorporation documents of this Limited liability company,
Bhartiya international Ltd is the sole member having 100% membership interest
and the entire investment has been represented as members capital contribution.
An LLC for income tax purposes in USA under the IRS can elect to be taxed as
either a partnership or as a separate corporate entity. In the selection of
being taxed as a partnership, the LLC is a pass through entity and the members
get taxed on their share of the profit/loss. BIL Group LLC has, adopted to be
taxed as a partnership and hence Bhartiya International Ltd being the sole
member, shall be taxed for the full profit or loss in USA .The financial year
closure of this LLC is 31st December and it has reported a loss of USD
251,2427- (Rs.l10.896 Millions) in its financial year ended 31st December 2006.
Accordingly Bhartiya International Ltd shall be filing a tax return in the USA
showing its loss of USD 2512427- (Rs.l 0.896 Millions) in BIL Group LLC and
shall claim deduction of this loss against its Income Tax liability in India.
Provisions for taxes includes Rs.0.843 Millions (Previous Year Rs. 0.086
Millions) being taxes paid for earlier years.
In compliance with the Accounting Standard on "Taxation on
Income" (AS-22) issued by Institute of Chartered
Accountants of India, the breakup of net deferred tax liability as on
31.3.2007 and the deferred tax Liability for
the year is provided below
Fixed Assets
1. Land
2. Building
3. Machinery
4. Vehicles
5. Furniture
6. Office Equipments
7. Computers
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.89 |
|
UK Pound |
1 |
Rs.84.84 |
|
Euro |
1 |
Rs.67.61 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
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 |
|