MIRA
INFORM REPORT
|
Report Date : |
12.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
PHOENIX LAMPS
LIMITED |
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Registered
Office : |
59-A, Noida Special
Economic Zone, Noida Phase – II, District Gautam Budh Nagar - 201305, Uttar
Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2008 |
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Date of
Incorporation : |
26.03.1991 |
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Com. Reg. No.: |
20-12944 |
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CIN No.: [Company
Identification No.] |
L31500UP1991PLC012944 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTP00549D |
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Legal Form : |
A Public Limited Liability
Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturers
and Suppliers of Compact Fluorescent Lamps for General Lighting and Halogen
Lamps for Automotive. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 8000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject has
improved its performance in 2004 – 05. Directors are reported as experienced,
respectable and resourceful industrialists. Their trade relations are fair.
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.
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LOCATIONS
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Registered
Office/Factory : |
59-A, Noida
Special Economic Zone, Noida Phase – II, District Gautam Budh Nagar - 201305,
Uttar Pradesh, India |
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Tel. No.: |
91-120-2562952-57/4012222 |
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Fax No.: |
91-120-2562943/26843949 |
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E-Mail : |
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Website : |
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Factory 2: |
A – 1, Noida
Phase – II, District Gautam Budh Nagar – 201305, Uttar Pradesh, India |
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Tel. No.: |
91-120-2562952/ 57 |
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Fax No.: |
91-120-2562943 |
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E-Mail : |
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Factory 3: |
C – 8 Selaqui
Industrial Area, District Dehradun, Uttaranchal |
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Factory 4: |
59 – D, Noida
Special Economic Zone, Noida Phase – II, District Gautam Budh Nagar – 201305,
Uttar Pradesh |
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Factory 5: |
Plot No. 5, Sector
12, Integrated Industrial Area, Ranipur, Haridwar, Uttaranchal |
DIRECTORS
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Name : |
Mr. B.K. Gupta |
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Designation : |
Chairman |
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Age: |
71 Years |
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Qualification: |
Graduate |
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Experience: |
45 Years |
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Date of
Appointment : |
30.04.2005 |
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Last
Employment: |
Industrialist |
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Name: |
Mr. Raj Krishan
Sahgal |
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Designation: |
Chairman |
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Name: |
Mr. Rajiv Prasad |
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Designation: |
Managing Director |
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Name : |
Mr. H.R. Gupta |
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Designation : |
Ex-Managing Director |
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Age : |
47 Years |
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Qualification
: |
B.B.A. Canada |
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Experience : |
23 Years |
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Date of
Appointment : |
22.09.1992 |
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Last
Employment: |
Industrialist |
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Name : |
Mr. Sudesh Yadav |
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Designation : |
IDBI Nominee
Director |
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Name : |
Mr. K. Mohan Ram
Pai |
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Designation : |
Director |
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Name : |
Mr. Anil Sharma |
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Designation : |
Director |
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Name : |
Mr. A. K. Agarwal |
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Designation : |
Whole Time
Director |
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Age : |
56 Years |
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Qualification
: |
C.A. |
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Experience : |
36 Years |
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Date of
Appointment : |
01.01.1991 |
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Last
Employment: |
Halonix Electric
Private Limited |
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Name : |
Mr. G S Vohra |
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Designation : |
Executive
Director |
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Age: |
57 Years |
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Qualification
: |
C.A. |
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Experience : |
33 Years |
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Date of
Appointment : |
14.09.1992 |
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Last
Employment: |
Delhi Botling
Company Limited |
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Name: |
Mr. P. C.
Chaturvedi |
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Designation: |
Director |
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Name: |
Mr. C. D. Ghosh |
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Designation: |
Director |
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Name: |
Mr. C. A.
Venkateshwaran |
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Designation: |
Director |
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Name: |
Mr. Donald
Machines Peck |
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Designation: |
Director |
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Name: |
Mr. Steven Mark
Enderby |
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Designation: |
Director |
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Name: |
Mr. Jayant Davar |
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Designation: |
Director |
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Name: |
Mr. Gurdeep Singh
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Designation: |
Director |
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Name : |
Mr. Sanjeev
Sharma |
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Designation : |
Chairman |
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Age: |
47 Years |
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Qualification: |
MBA in Marketing
Engineering from IIT |
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Experience: |
22 Years |
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Date of
Appointment : |
01.01.2007 |
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Last
Employment: |
Nokia |
KEY EXECUTIVES
|
Name : |
Mr. A. K. Mittal |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2008)
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Shareholding
of Promoter Promoter Group |
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Foreign |
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Bodies Corporate |
18509587 |
66.06 |
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Public
shareholding |
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Institutions |
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Mutual
Funds / Axis |
319600 |
1.14 |
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Financial
Institutions/Banks |
700 |
0.00 |
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Foreign
Institutional Investors |
594458 |
2.12 |
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Non-Institutions |
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Bodies
Corporate |
2853634 |
10.18 |
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Individuals
- |
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Individual
shareholders holding nominal share capital up to Rs.0.100 million. |
4505012 |
16.08 |
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Individual
shareholders holding nominal share capital in excess of Rs. 0.100 million. |
863153 |
3.08 |
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Any Other (specify) |
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Trust |
16300 |
0.06 |
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NRIs |
356856 |
1.28 |
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GROUND TOTAL |
28019300 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and
Suppliers of Compact Fluorescent Lamps for General Lighting and Halogen Lamps
for Automotive. |
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Products : |
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Brand Names : |
"HALONIX" |
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Exports : |
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Countries : |
Ø
European
Countries Ø
Japan Ø
South Korea Ø
Brazil Ø
Australia Ø
South Africa Ø
Middle East Ø
South East
Asia Ø
North and
South American Countries |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Electric Lamps |
Pcs. |
N.A. |
101712 |
79197 |
GENERAL
INFORMATION
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No. of Employees : |
1791 |
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Bankers : |
Ø
Corporation Bank, M 41, Connaught Circus, Delhi – 110001, India Ø Canara Bank, Industrial Finance Branch, 11th Floor, World Trade Tower,
Delhi – 110001, India Ø Indian Bank, South Extension I, Delhi – 110048, India Ø Standard Chartered Bank |
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Facilities : |
Ø
Term Loans are secured by way of first pari passu charges on all the
movable and immovable properties, both present & future & subject to charges
created/ to be created in favour of the company’s bankers by way of security
against borrowing for working capital requirements in the ordinary course of
business. Ø
Working Capital loans from Scheduled Bank is secured by hypothecation
of stocks of Raw Material, Work in Progress, Finished Goods, Stores &
Spares, consumables and book debts of the Company both present and future and
further secured by way of second charge on the fixed assets. |
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Banking Relations : |
Satisfactory |
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Auditors : |
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Name : |
Arun K. Gupta and
Associates Chartered
Accountants |
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Address: |
D-58, East to
Kailash, New Delhi – 110 065, India |
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Internal
Auditors: |
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Name : |
Ernst And Young Chartered
Accountants |
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Address: |
B-26, Qutab
Institutional Area, New Delhi 110016 |
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Subsidiaries : |
Phoenix
Tri-Continental Hotels Limited |
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Common Control
: |
Argon South Asia
Limited |
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Holding
Company : |
Argon India
Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
41000000 |
Equity Shares |
Rs. 10/- each |
Rs. 410.000 Millions |
|
2900000 |
Redeemable
Preference Shares |
Rs. 100/- each |
Rs. 290.000 Millions |
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Total |
|
Rs.700.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
28019300 |
Equity Shares |
Rs. 10/- each |
Rs. 280.193 Millions |
|
1316000 |
Redeemable
Preference Shares |
Rs. 100/- each |
Rs. 131.600 Millions |
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Total |
|
Rs.
411.793 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
411.793 |
411.793 |
467.543 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
1136.744 |
893.637 |
315.845 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
1548.537 |
1305.430 |
783.388 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1048.744 |
509.744 |
557.837 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
250.000 |
|
TOTAL BORROWING
|
1048.744 |
509.744 |
807.837 |
|
|
DEFERRED TAX LIABILITIES |
54.570 |
54.733 |
85.202 |
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TOTAL
|
2651.851 |
1869.907 |
1676.427 |
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APPLICATION OF FUNDS
|
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|
|
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FIXED ASSETS [Net Block]
|
959.570 |
760.032 |
859.630 |
|
Capital work-in-progress
|
173.458 |
192.312 |
0.000 |
|
|
|
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|
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|
INVESTMENT
|
0.000 |
0.020 |
0.520 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
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CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
969.279 |
464.152 |
422.750 |
|
|
Sundry Debtors
|
984.899 |
588.751 |
431.005 |
|
|
Cash & Bank Balances
|
25.672 |
26.799 |
130.391 |
|
|
Other Current Assets
|
12.923 |
8.259 |
6.464 |
|
|
Loans & Advances
|
87.616 |
76.396 |
26.713 |
Total Current Assets
|
2080.389 |
1164.357 |
1017.323 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
393.559 |
138.187 |
201.046 |
|
|
Provisions
|
168.007 |
108.627 |
0.000 |
Total Current Liabilities
|
561.566 |
246.814 |
201.046 |
|
Net Current Assets
|
1518.823 |
917.543 |
816.277 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
2651.851 |
1869.907 |
1676.427 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
Sales Turnover
|
3566.475 |
2778.346 |
2327.208 |
Other Income
|
38.355 |
27.771 |
33.512 |
Total Income
|
3604.830 |
2806.117 |
2360.72 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
520.029 |
302.016 |
238.517 |
Provision for Taxation
|
39.991 |
[12.726] |
[0.364] |
Profit/(Loss) After Tax
|
480.038 |
314.742 |
238.881 |
|
|
|
|
|
Export Value
|
862.468 |
950.824 |
873.753 |
|
|
|
|
|
Import Value
|
1297.464 |
779.576 |
NA |
|
|
|
|
|
Expenditure:
|
|
|
|
Materials
|
2397.143 |
1709.719 |
1421.176 |
Operating Expenses
|
136.847 |
132.298 |
126.843 |
Administrative and Selling
Expenses
|
244.014 |
228.411 |
182.007 |
Payment to Employees
|
290.830 |
247.991 |
213.583 |
Financial Charges
|
71.543 |
72.259 |
68.790 |
Depreciation
|
111.103 |
107.533 |
142.995 |
Increased/Decreased in stock
|
(166.679) |
5.890 |
[33.190] |
Total Expenditure
|
3084.801 |
2504.101 |
2122.204 |
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Type |
|
1st Quarter |
2nd Quarter |
|
Sales Turnover |
|
853.500 |
1115.400 |
|
Other Income |
|
2.700 |
0.300 |
|
Total Income |
|
856.200 |
1115.700 |
|
Total Expenditure |
|
707.900 |
989.400 |
|
Operating Profit |
|
148.300 |
126.300 |
|
Interest |
|
31.500 |
37.200 |
|
Gross Profit |
|
116.800 |
89.100 |
|
Depreciation |
|
28.300 |
29.500 |
|
Tax |
|
11.000 |
4.800 |
|
Reported PAT |
|
80.600 |
54.800 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.55 |
0.63 |
1.07 |
|
Long Term Debt-Equity Ratio |
0.05 |
0.19 |
0.50 |
|
Current Ratio |
1.37 |
1.43 |
1.23 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.70 |
1.43 |
1.25 |
|
Inventory |
5.24 |
6.55 |
6.05 |
|
Debtors |
4.77 |
5.70 |
6.55 |
|
Interest Cover Ratio |
8.26 |
5.02 |
4.61 |
|
Operating Profit Margin(%) |
18.70 |
16.19 |
18.77 |
|
Profit Before Interest And Tax Margin(%) |
15.74 |
12.49 |
12.94 |
|
Cash Profit Margin(%) |
15.75 |
14.54 |
15.57 |
|
Adjusted Net Profit Margin(%) |
12.79 |
10.84 |
9.74 |
|
Return On Capital Employed(%) |
26.78 |
21.30 |
21.95 |
|
Return On Net Worth(%) |
37.06 |
35.22 |
49.83 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
The company is a 100% EOU with a state-of-the-art plant in Noida, to manufacture halogen lamps (cap: 11.880 Millions pa) and compact fluorescent lamps (cap: 9.504 Millions pa). The company's products include automobile head lamps under the Halonix brand, H3 type halogen lamps for fog lamps, J-type halogen lamps for general lighting applications, compact fluorescent lamps (single/double H-type), etc.
The company has been certified as an ISO-9002 accredited company by RWTUV,
Germany, for quality assurance in production and installation. It has also
received the E-4 mark from N V Kema, Holland, for its H-4 halogen lamps.
The year 1996-97, Phoenix Electric (India) Limited (PEIL), a group company has
amalgamated with the Company.
The year 1999-2000, as per the Scheme of Arrangement, the company repurchased
11 lac equity shares of Rs. 10/- each from PICUP and extinguished the same and
converted 76.60 lac equity shares of Rs 10/- each held by Pheonix Electric
Company Limited., Japan into 7.66 lac Redeemable Preference shares of Rs. 100/-
each.
The company has changed its name as subject from the earlier name of Phoenix
Lamps IndiaLimited.
FINANCIAL AND OPERATIONAL
PERFORMANCE:
Gross
Sales grew by 29.31 % from Rs. 2932.11 Million in 2006-07 to Rs. 3791.56
Million in 2007-08. Profit before tax (PBT) at Rs. 520.04 Million has shown an
increase of over 72.19% against previous year's Rs. 302.02 Million. Net Profit
witnessed an increase of 52.52% at Rs. 480.04 Million from Rs. 314.74 Million
last year. The marked improvement in performance of your Company is due to high
awareness towards energy efficient lighting and thereby healthy growth of CFL
market, expansion of export of automotive market to new markets like USA and
Europe, better capacity utilization, productivity, efficiency and overall
improvement in all areas of operations. Commercial production of new unit at
Haridwar will show a much better performance in the current year.
STATUS OF IMPLEMENTATION OF NEW UNIT AT
HARIDWAR:
The
Company has started commercial production from its new CFL manufacturing unit
at Haridwar with effect from 1st of July, 2007.
This facility is being set up with a capacity to manufacture 43 million CFL
lamps per annum. The Company has incurred a total cost of Rs. 391.100 Millions
on this project. This unit enjoys 100% excise exemption for 10 years and 100%
income tax exemption for 5 years followed by 30% income tax exemption for next
5 years. This unit will give a competitive edge to the Company.
MANAGEMENT DISCUSSION & ANALYSIS
REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENT:
The
Company is the Market Leader in Automotive Halogen Lamp segment in India with
supplies to all Major OEMs in Four Wheeler and Two Wheeler Industry.
The Company is also leading player in Compact Fluorescent Lamps and other
General Lighting Halogen Lamps. In case of General Lighting Lamps, a rapid
shift is taking place from Ordinary Incandescent Lamps to energy efficient
Compact Fluorescent Lamps (CFLs). With increasing demand of Energy Saving Lamps
and various States and Central Government efforts and initiative to replace
Ordinary Incandescent Lamps with energy saving Lamps, the management is ready
to serve the growing demand in India as well as Global Markets.
OPPORTUNITIES AND
THREATS:
OPPORTUNITIES:
Government thrust on use of Energy saving equipments and Energy
shortage in India as well as rest of the World will increase the demand for
Compact Fluorescent Lamps and thus tremendous growth opportunities for the
Company.
- Operation of new unit at Haridwar will give additional advantage in
terms of quality, quantity and cost competitiveness over its rivals.
- Expanding export of automotive lamps to new markets like U.S.A and
Europe.
- Introduction of new generation lamps like LED, HID.
- Expansion towards Fixtures and Fitting business.
- Imposition of anti dumping duty on CFL shall boost topline as well as
bottom line of the Company.
- Expansion of domestic distribution network by the Company will increase
performance of the Company.
THREATS:
- Increasing Prices of input and volatility in currency market may impact
the profitability of the Company.
- High Energy prices, high inflation and high Interest cost may adversely
affect the Company.
- Likely slowdown in Automobile and Housing Sector, as predicted by some
experts, may impact the volume as well as profit of the Company.
OUTLOOK:
The Government thrust on development of Infrastructure and Housing sector as a whole and use of Energy efficient Lamps will further boost the demand for the products of the Company. Compact Fluorescent Lamp shall witness exponential growth in the current fiscal.
RISKS AND CONCERN:
The
operating margins are under pressure due to increase in interest cost, high
energy prices, raw material prices and other input costs. It may not be
possible for the Company to recover the increase in material cost entirely from
customers.
FINANCIAL PERFORMANCE VIS-A-VIS
OPERATIONAL PERFORMANCE:
Gross turnover at Rs.3791.56 Million recorded a growth of 29.31%. Profit before
tax at Rs.520.04 Million registered a growth of 72.19%. Net Profit at Rs.480.04
Million recorded an impressive growth of 52.52%. In view of improving financial
results and positive outlook for the near future, the Company has declared
Equity Dividend of 40% for the financial year 2007-08.
SEGMENT WISE OR
PRODUCT WISE PERFORMANCE
As per the relative reporting requirements, the Company operates into single
segment i.e. Electrical Lamps. For the year under review 75.74% of sales were
generated from domestic market while remaining 24.26% came from export market. Automotive
Lamps constituted 41.30% of total sales and balance 58.70% sales came from
General Lighting Lamps.
INTERNAL
CONTROL SYSTEM AND THEIR ADEQUACY
The Company has a proper and adequate system of internal controls commensurate
with its size to ensure that all assets are safeguarded and protected against
loss from unauthorized use or disposition and that transaction are authorized,
recorded and reported correctly.
The Company's internal control systems are further supplemented by an extensive
programme of internal audit by an independent firm of Chartered Accountants and
periodic review by management.
The internal control system is designed to ensure that all financial and other
are reliable for preparing financial statements and other data and for
maintaining accountability of assets.
FIXED
ASSETS
Ø
Land
Ø
Building
Ø
Plant and machinery
Ø
Laboratory equipment
Ø
Gas cylinder
Ø
Furniture & fixture
Ø
Office equipment
Ø
Computer
Ø
Vehicle
Ø
Fire fighting equipment
AS PER WEBSITE
DETAILS:
PROFILE:
Subject promoted in the
year 1991 as an Indo Japanese Joint Venture, is counted amongst the most
preferred manufacturers and suppliers of Compact Fluorescent Lamps for General
Lighting and Halogen Lamps for Automotive. The company saw change in ownership
in the year 2007 and was taken over, by Actis, a major Private Equity player.
After which, there has been a reorganization in the management structure that
has resulted in increased business activity across the globe.
They have been accredited with ISO 9001: 2000, ISO/TS 16949: 2002, ISO 14001:
2004 and OHSAS 18001: 2007 certificates, which is a clear evidence of their
superior performance and commitment towards achieving excellence. Their
thorough technical acumen and vast industry experience, they are aggressively
pursuing growth and aim to be the No. 1 Lighting player by the end of 2010.
Innovation and new product development have always been their focus areas, they
have set their eyes on providing state-of-art lighting solutions for
commercial, public, retail and outdoor spaces and for providing the same they
have entered into a partnership with NVC, Zonca and Grechi that are among the
leading companies in the luminaires sector.
With a investment of USD 70 million, they have set up five fully integrated
state-of-the-art manufacturing plants located at Noida, Haridwar and Dehradun.
Each plant is managed by skilled manpower. With a collective capacity of
producing over 150 millions lamps annually, they have been able to successfully
execute bulk orders and thus have captured a major portion of the domestic and
international markets.
Delivering the products effectively to the diverse markets with the help of
their wide distribution network across India, they have created a long list of
satisfied clients. Their consistent efforts, they have developed a strong
foothold in the domestic market which has inspired to spread their wings in the
international arena.
News:
Actis
to invest $44.4 mn in Phoenix Lamps
New Delhi. July 4
Private equity investor Actis announced on Tuesday that it
will be investing $44.4 million for picking up equity in two companies,
including buying out the promoter stake in Noida-based Phoenix Lamps, which
owns the Halonix brand. The company will invest $28.9 million in Phoenix Lamps
to buy out the promoter stake of 36.7 per cent. Actis is acquiring the complete
stake of the promoters, Mr. B.K. Gupta, Mr. H.R. Gupta and family at a price of
Rs 152 per share, a press release stated.
The acquisition would take Actis' stake in the company to 45 per cent. Actis
will shortly be announcing an open offer to acquire a further 20 per cent. This
will be the private equity firm's third management buyout in India after Nitrex
and Punjab Tractors.
Taking
over
Phoenix manufactures and markets lighting products and systems under Halonix
brand, including for the high-growth energy efficient segment. ``Phoenix Lamps
is a first-rate company serving the major OEMs as well as the Indian consumer.
We intend to ensure that the Halonix brand develops its full potential in
energy-efficient lighting systems while also expanding the global reach of
Phoenix's automobile lighting products,'' the Actis South Asia Managing
Partner, Mr Donald Peck, said.
Another investment
The company said it will also invest $ 15.5 million in
growth capital to fund the expansion of Add Life Medical Institute Limited, the
Gujarat hospital chain, which operates under the Sterling brand.
"Actis has identified Sterling for its thrust into the healthcare sector
because of its well-managed current business and its potential for inorganic
growth in the underserved but attractive Gujarat market. We expect this business
to achieve strong growth based on its successful acquisition and integration
strategy," Mr. Peck said.
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.47.59 |
|
UK Pound |
1 |
Rs.74.55 |
|
Euro |
1 |
Rs.60.57 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|