MIRA
INFORM REPORT
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Report Date : |
17.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
PRAJ INDUSTRIES
LIMITED |
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Registered Office : |
"PRAJ HOUSE",
Bavdhan,
Pune – 411021, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
08.11.1985 |
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Com. Reg. No.: |
11-38031 |
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CIN No.: [Company
Identification No.] |
L27101PN1985PLC038031 |
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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 : |
Design,
Manufacture, Supply and Commissioning of Fermentation and Distillation
Equipment for Manufacture of Alcohol, Using latest continuous Fermentation
Technology. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 20000000 |
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Status : |
Good |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established company having satisfactory track. Trade relations are fair.
General financial position is satisfactory. Payments are reported as slow. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered/Head Office : |
"PRAJ
HOUSE", Bavdhan, Pune 411
021, Maharashtra, India |
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Tel. No.: |
91-20-22951511/22952214/39806666 / 22905000 |
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Fax No.: |
91-20-22951718 / 22951515 |
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E-Mail : |
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Website : |
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INDIA |
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Address 1: |
2nd Floor, City
Mall, Ganeshkhind Road, Near National Informatics Centre, Chaturshrungi,
Pune-411 016 |
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Tel No.: |
91-20-66248400/66248699 |
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Fax No.: |
91-20-66248417 |
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Email: |
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Address 2: |
201, Sukhdev Vihar, Near Escorts Heart Institute, Opposite - Police
Station, New Delhi - 110 025. |
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Telfax No.: |
91-11-26911583/26911584/26911586 |
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Email: |
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Address 3: |
No.173, 10th Cross, 10th `A` Main, Indira Nagar, IInd Stage, Bangalore 560 038 |
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Tel No.: |
91-80-25251680/25251484 |
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Fax No.: |
91-80-25202432 |
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Email: |
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Factory 1: |
Sanaswadi, Pune 412 207, Maharashtra.. |
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Factory 2: |
Rabale, Navi Mumbai 400 701, Maharashtra. |
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Factory 3: |
EOU-. Dhanori, Pune 412 105, Maharashtra. |
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Factory 4: |
Kandla SEZ: Gandhidham, Kutch 370 230, Gujarat. |
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Export Oriented Unit |
· Gat No. 105, Taluka Khed, District – Pune Alandi Markal Road, Dhanori, Pune 412105.
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R and D Centre |
Matrix - The Innovation Center "PRAJ HOUSE1, Bavdhan, Pune 411 021 |
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INTERNATIONAL |
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Address: |
Calle 70 A, No. 7-36. Apto 502, Edificio Luby, Santafede Bogota, D.C.
Colombia, Sur America |
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Telefax
No.: |
91-57-1-2122162. |
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Email: |
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Address: |
Post Box # : 41738 Sharjah, United Arab Emirates. |
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Tel
No.: |
91-971-6-5263371 |
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Fax
No.: |
91-971-6-5557302 |
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Email: |
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Address: |
C/o Darmniti Law Office, 4th floor, Ni-lert tower, 2/4 Wireless Road. Lumpini, Pathumwan,
Bangkok 10330, Thailand |
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Tel
No.: |
91-66-2-6553346 |
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Fax
No.: |
91-66-2-6553347 |
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Email: |
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Address: |
Post Box No. 650847, Benmore, 2010, Johannesburg Republic of
South Africa. |
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Tel
No.: |
91-27-11-8838297 |
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Email: |
DIRECTORS
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Name : |
Mr. Pramod Chaudhari |
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Designation : |
Chairman
(Executive Director) |
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Name : |
Mr. Shashank
Inamdar |
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Designation : |
Managing Director |
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Name : |
Mr. Venkatachala
Datar |
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Designation : |
Director |
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Name : |
Mr. Berjis Desai |
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Designation : |
Director |
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Name : |
Mr. Sivaramakrishnan
Iyer |
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Designation : |
Director |
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Name : |
Mr. Rakesh
Jhunjhunwala |
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Designation : |
Director |
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Name : |
Mr. Anil Joshi |
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Designation : |
Director |
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Name : |
Mr. Parimal Chaudhari |
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Designation : |
Director |
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Name : |
Mr. Daljit Mirchandani |
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Designation : |
Director |
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Date of Appointment : |
18.04.2007 |
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Name : |
Mr. Kishor Chaukar |
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Designation : |
Director |
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Name : |
Mr. Utpal Sheth |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Deepak Mogal |
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Designation : |
Company Secretary |
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Name : |
Mr. Shashank Inamdar |
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Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters
Holding |
39046368 |
21.32 |
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Mutual Funds/ Banks |
18888572 |
10.31 |
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Financial Institutions/ Bnaks |
296278 |
0.16 |
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Foreign Institutional Investors |
26587018 |
14.52 |
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Bodies Corporate |
30219584 |
16.50 |
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Indian Public |
51974182 |
28.37 |
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Clearing Members |
1568877 |
0.86 |
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Non-Resident Indians |
12957381 |
7.07 |
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OCB |
1622250 |
0.89 |
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Trusts |
1300 |
0.00 |
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Total |
183161810 |
100.00 |
(As on 30.09.2008)
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters
Holding |
39042368 |
21.28 |
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Mutual Funds/ Banks |
25211997 |
13.75 |
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Financial Institutions/ Bnaks |
230014 |
0.13 |
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Foreign Institutional Investors |
21776686 |
11.87 |
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Bodies Corporate |
28276222 |
15.42 |
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Indian Public |
52978252 |
28.88 |
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Clearing Members |
1309879 |
0.72 |
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Non-Resident Indians |
12977330 |
7.07 |
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OCB |
1622250 |
0.88 |
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Trusts |
1300 |
0.00 |
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Total |
183426298 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Design,
Manufacture, Supply and Commissioning of Fermentation and Distillation
Equipment for Manufacture of Alcohol, Using latest continuous Fermentation
Technology. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
About 1200 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B. K.
Khare and Company Chartered
Accountant |
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Address: |
706/708,
Sharda Chambers, New Marine Lines, Mumbai 400 020 |
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Name : |
BSR and Company Chartered Accountant |
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Internal Auditors |
G. D. Apte and Company Chartered Accountants, 1202/17E, Shivajinagar, Off Apte Road, Pune 411 004. |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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450000000 |
Equity Shares |
Rs.2/- Each |
Rs.900.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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183161810 |
Equity Shares |
Rs.2/- Each |
Rs.366.324
Millions |
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Of the above:
7,300,125 equity shares of Rs.2 each were allotted during the financial year 2007-08 pursuant to the conversion of warrants. 588,740 equity shares of Rs.2 each were allotted during the financial year 2007-08 pursuant to the exercise of stock options.
91,372,879 equity shares of Rs.2 each issued as bonus shares during the financial year 2007-08 by capitalisation of securities premium account.
40,556,260 equity shares of Rs.2 each issued as bonus shares during the financial year 2005-06 by capitalisation of securities premium account.
4,320,000 equity shares of Rs.10 each were allotted to shareholders of Praj Engineering Limited, during the financial year 2002-03 pursuant to a scheme of amalgamation without payment being received in cash. (*)
896,652 equity shares of Rs.10 each (converted were allotted to share holders of Praj Finance Limited, during the financial year 1997-98 pursuant to a scheme of amalgamation without payment being received in cash. (*)
1,350,000 equity shares of Rs.10 each issued as bonus shares during the financial year 1993-94 by capitalisation of reserves. (*)
21,491 equity shares of Rs.10 each were allotted during the financial year 1989-90 pursuant to contracts without payment having been received in cash. (*)
(*) During the financial year 2005-06 the Company subdivided the equity shares of Rs.10 each into five shares of Rs.2 each. Consequently these shares were converted into 32,940,715 equity shares of Rs.2 each.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
366.324 |
167.800 |
162.225 |
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2] Share Application Money |
0.031 |
90.333 |
0.000 |
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3] Reserves & Surplus |
3142.041 |
1314.728 |
387.292 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3508.396 |
1572.861 |
549.517 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
72.618 |
41.363 |
29.978 |
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TOTAL |
3581.014 |
1614.224 |
579.495 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
864.262 |
371.686 |
270.955 |
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Capital work-in-progress |
195.421 |
82.842 |
8.067 |
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INVESTMENT |
2664.311 |
1806.998 |
387.649 |
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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 |
751.563
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971.294
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203.534
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Sundry Debtors |
305.925
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1236.410
|
394.580
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Cash & Bank Balances |
1574.054
|
373.844
|
294.746
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Other Current Assets |
290.037
|
258.903
|
107.189
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Loans & Advances |
219.281
|
313.220
|
163.738
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Total Current Assets |
3140.860 |
3153.671 |
1163.787
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
3186.702
|
3788.916
|
1126.625
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Provisions |
97.138
|
12.057
|
124.338
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Total Current Liabilities |
3283.840 |
3800.973 |
1250.963
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Net Current Assets |
(142.980) |
[647.302] |
(87.176)
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3581.014 |
1614.224 |
579.495 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
7016.267 |
6074.744 |
2674.985 |
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Other Income |
386.827 |
89.328 |
25.326 |
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Total Income |
7403.094 |
6164.072 |
2700.311 |
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Profit/(Loss) Before Tax |
1743.784 |
1103.649 |
323.871 |
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Provision for Taxation |
208.347 |
238.356 |
79.746 |
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Profit/(Loss) After Tax |
1535.437 |
865.293 |
244.125 |
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Earnings in Foreign Currency : |
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Export Earnings |
2749.180 |
1336.295 |
674.728 |
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Consultancy ad Others |
0.000 |
1.125 |
35.150 |
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IT Software and IT enables Services |
458.445 |
517.584 |
160.468 |
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Total Earnings |
3207.625 |
1855.004 |
870.346 |
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Imports : |
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Raw Materials |
341.775 |
518.066 |
189.665 |
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Components |
370.791 |
258.722 |
79.884 |
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Total Imports |
712.566 |
776.788 |
269.549 |
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Expenditures : |
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Cost of Operations |
3821.774 |
4398.702 |
1995.457 |
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Personnel Expenses |
497.554 |
286.190 |
171.265 |
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Other Expenses |
1272.078 |
341.406 |
177.907 |
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Finance Charges |
55.349 |
2.517 |
5.309 |
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Depreciation |
12.555 |
31.608 |
26.502 |
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Total Expenditure |
5659.310 |
5,060.423 |
2,376.440 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
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Sales Turnover |
|
1547.600 |
1997.100 |
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Other Income |
|
20.300 |
60.300 |
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Total Income |
|
1567.900 |
2057.400 |
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Total Expenditure |
|
1249.500 |
1680.600 |
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Operating Profit |
|
318.400 |
376.800 |
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Interest |
|
0.000 |
0.000 |
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Gross Profit |
|
318.400 |
376.800 |
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Depreciation |
|
17.300 |
19.300 |
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Tax |
|
53.600 |
55.700 |
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Reported PAT |
|
247.500 |
301.800 |
KEY RATIOS
|
PARTICULARS
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Long Term
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
0.86 |
0.83 |
0.99 |
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TURNOVER RATIOS |
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Fixed Assets |
9.35 |
14.18 |
7.89 |
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Inventory |
6.30 |
8.19 |
8.24 |
|
Debtors |
5.21 |
7.92 |
8.81 |
|
Interest Cover
Ratio |
5813.67 |
442.48 |
14.11 |
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Operating Profit
Margin(%) |
24.57 |
17.63 |
13.78 |
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Profit Before Interest
And Tax Margin(%) |
23.82 |
17.14 |
12.80 |
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Cash Profit
Margin(%) |
21.73 |
13.89 |
9.94 |
|
Adjusted Net
Profit Margin(%) |
20.97 |
13.40 |
8.96 |
|
Return On Capital
Employed(%) |
69.89 |
108.88 |
71.77 |
|
Return On Net
Worth(%) |
61.53 |
85.17 |
50.26 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject is a global
Indian company started way back in 8th November of the year 1985 with the
objective of providing cutting edge solutions to the Distillery Industry. PIL
now spread across 5 continents and 40 countries with over 350 references, which
offers innovative solutions to significantly add value in bio-ethanol,
bio-diesel and brewery plants and related wastewater treatment systems for
customers, worldwide. Company is a knowledge-based company with expertise and
experience in Bioprocesses and engineering. It delivers know how, License,
engineering design, plant & equipment, project management, commissioning
and customer care and turnkey projects.
Beginning of Praj's journey into Agro-based process industry and the first
opportunity came from a Sugar Mill in India during the inception period. The
Company developed SPRANNIHILATOR, a zero-pollution system for treatment of distillery
effluents in the year 1986. The system was subsequently given an award for
innovative concept. In the period of 1987-88, PIL had received Venture Capital
from ICICI. In 1991, Company established an R & D Center. Many new systems
had been developed in this R & D Center, resulted into seven patents.
Company expertise in fermentation and distillation was complemented by its
expertise in wastewater treatment solutions. The Company's Sprannihilator
System was given an award during the year 1992 by the Government of India,
Ministry of Chemicals & Fertilizers. The Company undertook in-house
development of Non-molasses (Starch based) technology and engineering for
grains and tubers in 1993. In the same year 1993, Company also introduced
Brewery Engineering, Plant & Equipment. Company went to public in the year
1994 and also the company branched out in the international market with orders
from Indonesia and Philippines. Between the periods from 1996-1999, Company had
restructured to focus on its primary lines like ethanol technology and
equipment, wastewater treatment and brewery engineering and commissioned
several grain based ethanol plants in India.
The Company had ventured into South America in the year 2000. An office set up
in Bogota, Colombia to reach out to South, Central America and Caribbean and
partner customers in the region. In the identical year of 2000, company
manufacturing facility awarded the ISO 9002 and the prestigious ASME U & H
stamps for pressure vessels and heating boilers, also an energy saving
multi-pressure distillation systems, introduced by the company, became an
Industry Standard. For production of Fuel grade ethanol in Vapor Phase
Molecular Sieve Dehydration plants the company made collaborates in the year
2000-02. PIL's first MSDH plant in India went on stream in May of the year
2002. During the period of 2000-02, the company had entered into East European
Market with engineering order for a grain-based plant, launched Multi-feed
& Multi-product Ethanol technology for round the year distillery operation
and also bagged an order for Multi-feed & multi-product plant in
Maharashtra, for Vaidyanath SSK Limited. In the years between 2002-04, after
the successful entry in East European Market, PIL made entry in Australian
Market with First technology and engineering order for green-field Fuel ethanol
production plant. Launched the innovation Center for advanced applied research
in the field of ethanol and brewing process under the name of Matrix, developed
Sweet Sorghum to Ethanol process, received ICORE award for the leadership in
Biofuels and commissioned a unique wastewater treatment plant in Colombia. This
technology was developed in-house.
During the year 2005, Company commissioned two large size ethanol plants in
Colombia, exclusive Export Oriented Unit (EOU) of the company was established
and the Brewery Manufacturing facility near Pune (Sanaswadi, Unit-2) was
acquired. PIL had also acquired worldwide rights for Molecular Sieve based
dehydration technology from Delta-T in the same year of 2005. All five large
sized ethanol plants of the company in Colombia on stream for commercial
production from March 2006 onwards. During the same year 2006, PIL had inked
alliance with Meura for High Performance Brewery Mash Filters company expands
Brewery Business, Skid Mounted Ethanol Plant designed, manufactured and shipped
to CSR Australia and also the company had acquired US Engineering Company C.J.
Schneider Inc. The Company made a Joint Venture with Aker Kvaerner in the year
2007 and established JV Company under the name of BioCnergy Europa B.B in
Netherlands. Company’s fifth manufacturing facility in Kandla (SEZ), India
commissioned for bioethanol and biodiesel manufacturing units. In the same year
of 2007, company had opened office in Brazil made a footprint in Biodiesel
business. The Company conferred Star SME Award 2007' by The Business Standard.
Pantaleon Group, Guatemala awarded two large ethanol plant contracts to company
in May of the year 2008. Out of the two, one for 450,000 LPD (40 MGPY) at Bio
Etanol in Guatemala and another for 300,000 LPD (27 MGPY) at Ingenio Monte
Rosa, Nicaragua. As at 2008, company had awarded a contract by Maple Etanol
S.R.L., Peru, a subsidiary of Maple Energy plc, a leading integrated energy
company, for a 400,000 litres per day distillery for production of fuel grade
ethanol based on clarified cane juice as feedstock.
The Company has a vision of expanding in the biofuels technology arena. For
biodiesel projects, the company will offer in-house developed turnkey solutions
including technology, engineering, plant & equipment and project management
services.
FINANCIAL RESULTS:
The Company has recorded a total income of Rs.7403 million (previous year Rs.6164 million). Profit before Tax also increased from Rs.1104 million in FY 2006-07 to Rs.1756 million in FY 2007-08.
ACQUISITIONS
/ PROMOTIONS / DIVESTMENT / CLOSURE:
The Company promoted a Joint Venture Company, Bio Cnergy
Europa B.V., with Aker Solutions, a renowned EPC Company. BioCnergy is based in
The Netherlands. The Company holds 60% of the equity while Aker Solutions holds
the balance 40%. The Company is actively pursuing business opportunities in
Europe.
The Company has entered into a Joint Venture with Jaragua Equipamentos, Brazil
to form Praj Jaragua Bioenergia. This Joint Venture will be based near Sao
Paulo, Brazil. The Company will pursue business opportunities and provide
turnkey solutions to the Brazilian Biofuels Industry. Praj Jaragua will provide
sugarcane processing to ethanol production as part of its turnkey offer.
Company holds 54% in this Company with the balance being held by Jaragua.
The Company has also incorporated Praj Far East Company Limited, Bangkok to
address the biofuels markets in South East Asia, Far East, Australia and New
Zealand.
With an alternative presence in South East Asia, it is no more necessary to
keep another Company and hence, the Company has initiated steps to close its
Singapore subsidiary viz Praj Far East Pte Limited and is expected to wind up
its operations before September 2008.
The Company has divested its shareholding in Yaan eSites Limited, a specialized
software development Company. As a consequence, it ceases to be a subsidiary of
The Company. The business of the said Company has been taken over by the
Engineering Division of the Company.
SUBSIDIARIES:
Pacecon Engineering Projects Limited (PEPL), Praj Far East Pte Limited (PFE),
Singapore, Praj Schneider Inc, USA, BioCnergy Europa B.V., Netherlands, Praj Jaragua
Bioenergia S.A. Brazil and Praj Far East Company Limited, Thailand are
subsidiaries of the Company.
MANAGEMENT DISCUSSION &
ANALYSIS:
OVERALL REVIEW:
At the beginning of the year, they had committed that they will be changing the
trajectory, while continuing to improvise upon conventional solutions, they
realized the need for tech no-commercial innovation in order to make biofuels a
sustainable alternative. In 2007-08, they have done just that. They have
invested in new technology, they have gone into new and more mature markets,
they have created newer alliances and they now stand at the threshold of a new
world - that of second generation biofuels. For Compnay it has been a Year of
Transformation, designed to change the shape of the future.
FINANCIAL REVIEW:
While
financial performance in terms of income growth has been moderate - at 20% over
FY 2006-07 - they have kept the profit margins growing with PBT and PAT both
showing a growth of 58% and 77% respectively, over the previous fiscal. Capital
infusion through warrants and ESOPs coupled with Bonus issue saw the Capital
base increasing from Rs.168 Millions to Rs.366 Millions Return on Capital
Employed stands at 63%.
SHAPING THE
FUTURE:
The Company has crossed new milestones and set a new course for itself in this
defining period, as it gets set to enter its 25th year of operation in
2009.
While briefing on some key milestones, they would like to state that the world
of Biofuels is yet to attain its level of maturity and will continue to
generate passion amongst both, ardent believers and detractors, equally.
The food vs. fuel debate seems to be a way of reminding that more work needs to
go into this field. Their work on emerging energy crops like sweet sorghum and
cellulosic ethanol is precisely that.
Company try to be pragmatic and work on long term, win-win solutions. Runaway
oil prices is another reason why biofuels make imminent economic sense.
The belief in biofuels as one of the solutions to fight global warming remains
infallible. It has seen us taking bold steps: it has seen scale new challenges
and will continue to inspire to excel.
It is their firm belief that the biofuels industry with its numerous
contributors will overcome the challenges and the way forward is already
thought out in the Shape Of The Future.
RESEARCH & DEVELOPMENT:
The commitment to nexgen technologies is evident through their investments into
R&D. It is the only R & D Centre dedicated to biofuels and perhaps the
only one in the emerging economy, outside the advanced countries like
USA/Europe, of this magnitude, in terms of sophistication and facilities. They
have committed close to Rs.700.000 Millions in the advanced, state-of-the-art
facilities at Matrix-the innovation centre.
This will see us pursuing their cellulosic ethanol project with greater vigor,
as well as non-food / second generation solutions for biodiesel. Matrix has
already applied for three patents:
* One for cellulosic ethanol technology
* And two for high-energy ethanol blends
In fact, the advanced biotech facilities at Matrix is also the starting point
of their Industrial Biotech efforts. They are working out a blue print for the
same. Industrial Biotech is an area least explored, but holds great promise. It
is the area which concerns itself with shifting synthetic raw material based
processes to biological processes involving agri based, naturally occurring raw
materials. Areas of interest are speciality bio-chemicals or bio-lubricants.
Search for the right candidates is on. A separate team is working on this
plan.
FARM-TO-FUEL MODEL:
Sweet Sorghum was an initial effort towards development of alternate energy
crops. It is an idea whose time has come. They began working on Sweet Sorghum almost
five years ago - from cultivation to processing technology. Their visionary
approach has paid off and a beginning has been made. They are in the process of
installing the first fully integrated (farm-to-fuel) plant for Tata Chemicals,
exclusively based on sweet sorghum in India.
Besides, they have been working in over 18 countries, across the world, to
promote sweet sorghum to ethanol technology, so far.
Company has created a
separate division which deals with plant tissue culture, variety selection,
farm yield study, cultivation practices especially for non-food energy crops
including non-edible oil seeds like Jatropha, Karanja, safflower and 2nd
generation oil bearing organisms like algae for biodiesel. Company plans to be
a knowledge centre in this area. This will be a backward integration which will
accord susfainability to the Company's main business.
OPERATING ENVIRONMENT
& OPPORTUNITIES MARKET ROUND-UP:
ETHANOL/ALCOHOL INDUSTRY REVIEW:
ASIA:
India, which is a market of great significance for company, continues to be
their stronghold. This encourages to work harder in creating greater value for
their clients. While fuel ethanol is yet to be made mandatory, off-take is
taking place in some regions. Government has been talking of blending 10% for
the entire country. They see some positive moves with some state governments
abolishing taxes and others passing ordinance to process sugarcane directly for
ethanol (in India, 901 of alcohol is produced from cane molasses). Alcohol for
beverage/industrial application is also experiencing growth in the region of
12% y-o-y.
Thailand, Indonesia, Philippines and Japan are all very strong proponents of
biofuels. Being highly diversified in terms of energy crops these regions will
accord sustainability in the long run, providing continuum to Company’s
business. The region is also embarking upon Biodiesel program.
AFRICA:
It is a relatively untried territory for biofuels. With vast under utilized
land bank, it is a natural energy mine. The challenge is in offering an
eco-sensitive solution to protect the natural habitat of the region.
With their plant for Royal Swazi Sugar Corpn in operation, another one
operating in Malawi and Nigeria and a breakthrough in Kenya, they have
on-ground experience in Africa. They are also working on the South Africa
Energy Development project in a study to demonstrate and establish viability of
the projects.
EUROPE:
Europe has taken a bold decision of pushing forward with the binding minimum
target of 10% by 2020. They have built in a provision for sustainability index
and GHG emission savings for biofuels to ensure the right mix of
biofuels.
The Company is already active in the European biofuels market, having
contracted prestigious orders like British Sugar's Wissington plant (which has
since been commissioned), Suedzucker's Belgium plant and the Anklam plant for
Danisco. Incidentally, all three are also the largest sugar producers in the
EU.
Through BioCnergy, the Company is making firm in-roads into Europe and
neighbouring regions like Russia and Ukraine.
NORTH AMERICA:
They made an entry into USA around two years ago with good projects in the
pipeline. However, due to adverse economic situation, only three full projects
are currently under execution. Due to their geographical spread, even if they
may not be as vulnerable to US situation, a sizable market is presently not
available to be tapped.
The Energy Bill specifies corn based ethanol use upto 15 bin gallons. That is
double of the current istalled capacity, It is their belief that this will
happen once corn prices ease out. When will this happen? Being agricultural
cycle, it is very hard to predict. But going by past experience, they see the
agriculture cycle turning up. It could lead to an overall easing out of agri
commodity prices. However, they may not be at the earlier levels. Here is where
they see a technology play.
The first plant in Louisiana, based on sugarcane juice, is construction. This
will showcase their technology in USA for cane based ethanol.
SOUTH, CENTRAL AMERICA &
CARIBBEANS:
This region offers a dual advantage. Being closer to Brazil, it is very deeply
influenced by Brazilian success with ethanol as a domestic fuel. Also, being a
part of the CAFTA and CBI region, these countries have duty free access to US
biofuels market, where the quota is based on consumption forecast.
Their key references in Colombia and their recent order wins in Central America
gives an additional advantage in these markets.
BRAZIL:
Brazil is poised to grow from the current 20 bin litres to 35 bin litres by
2012. Brazilian market is not only known for bioethanol, but also for
biodiesel. The Brazilian Government has mandated 2% biodiesel blending by
2009 reaching upto 5% by 2012. This is an opportunity for the biodiesel
business of company.
BEER INDUSTRY REVIEW:
Opportunity for brewery equipment is on the upswing. In the year, they have
seen the turnover from brewery equipment double over the previous fiscal. Going
forward, they see a large opportunity pipeline as global beer majors enter into
India. They are now exploring overseas markets.
Indian brewery industry itself will offer a growth potential at 15-20% CAGR till
2012. Company is well poised to take up opportunities in this market. They have
increased their capacity for beer equipment manufacture and have put in place
machinery which will further increase the throughput.
They have entered into an alliance with key European Equipment and Technology
Suppliers like Meura (for Mash Filters) and with Holvereika (for Tank Jackets).
As brewery sizes increase, the requirement for such specialized systems will be
a necessity.
They presently command 50% the Indian brewery equipment market. They plan to grow this share of the market, in time to come.
BIODIESEL INDUSTRY ROUNDUP:
Biodiesel plants is a new area introduced in the last fiscal. This group has
developed in-house technology for different biodiesel feedstock in the first
generation. It is also working on non-food crops like Jatropha, Pongemia and
second generation crops like algae.
The group is working on market leads.
PARTNERING
FOR GROWTH:
PRAJ SCHNEIDER INC.:
The 100% subsidiary of Praj, C.J. Schneider is now known as Praj Schneider.
Praj Schneider has been active in the biofuels area by way of engineering
services for many of the offsites and balance of plant work. The Company is
actively pursuing opportunities in Canada and South, Central America. It will
be the customer touch point for Praj in the region.
BIOCNERGY EUROPA B.V.:
Companyand Aker Solutions have come together to form BioCnergy, a Company
focused upon European Biofuels market. The Company has already made a beginning
with a contract for the biggest (120 min litres per day) ethanol plant to be
set up in UK for Vivergo Fuels. This is a major coup for a such a young
Company. What is remarkable is that Praj technology is the basis of this
plant.
They expect BioCnergy to act as the beachhead for future businesses in
Europe.
PRAJJARAGUA BIOENERGIA S.A.:
Brazil, the bastion of biofuels is the second last destination in their
biofuels geography. Its vast potential gives a significant play in the market.
It also gives a presence in the 'Pioneering market' of Ethanol.
The JV partner, Jaragua Equipments, is part of the US$ 150 min Grupo Garcia of
Brazil. They have a strong presence in the EPCM space (Engineering,
Procurement, Construction and Manufacturing) which accords the required
strength to the JV for the Brazilian market. Praj technology will be the
underlying basis of all offers.
AWARDS, CERTIFICATIONS &
RECOGNITION:
They Company has been creating global footprints on another front too. Company
is now a founding member of Global Growth Companies, a World Economic Forum
initiative for identifying the next in line leaders. These are Companies with
demonstrated global leadership. Company is amongst the 14 Indian Companies
which are members of the 125 strong GGC forums.
They have been feted by Business Standard and by Business World - Boston
Consulting Group as the best value creator. Forbes Asia Magazine and Outlook
Money recognized Praj's inherent strengths in terms of the Company's
performance.
RESOURCES:
MANUFACTURING:
On the resource front, the Phase I of the Kandla workshop is commissioned and
is in operation. Phase II is also under implementation. The workshop has
recently been accredited with ASME.
The workshop recently dispatched equipment, amongst them a 3000 mtrs vessel
weighing 184 tons to Europe. This is by far the single largest vessel in one
piece dispatched from their workshop.
The Company's scaling up is visible and their efforts of the past to increase capacity
for overseas projects is demonstrated.
Similarly, they are fitting their various other manufacturing facilities with
modern equipment for handling a higher throughput. This work is currently
underway.
Their annual manufacturing capacity now stands at over 10000 mtons as compared
to 6000 mtons in the previous year.
FUTURE OUTLOOK:
Renewable fuels, in particular biofuels, is a young industry. With crude prices
hovering above $100 a barrel, biofuels will form a significant part of the renewable
fuels basket in years to come. Breakthrough in technology will see biofuels cut
across different debates and establish itself as a viable alternative.
They will continue to work across geographies to lend equanimity to the
organizational goals.
FIXED
ASSETS
·
Land Freehold
·
Building
·
Plant & Machinery
·
Furniture and Fixture
·
Computer
·
Office Equipment
·
Vehicles
AS PER WEBSITE
MILESTONES IN THE JOURNEY OF PRAJ
1984/85:
- Inception of PRAJ. Beginning of PRAJ's journey into Agro-based process
industry.
- Ist Opportunity comes from Siddheswar
Sahakari Sakhar Karkhana Ltd. (Solapur).
1986:
- Praj collaborates
with Vogelbusch, Austria for Continuous Fermentation Process in India.
- Praj develops
SPRANNIHILATOR, a zero-pollution system for treatment of distillery
effluents. The system was subsequently given an award for innovative
concept.
1987/88:
- Praj, one of the first Companies to receive Venture Capital from ICICI
(now ICICI Ventures).
1989/91:
- To further its commitment to the
Ethanol industry Praj set
up an R & D Center dedicated to ethanol production. Recognized by
Govt. of India, DSIR, this center is equipped with analytical and
instrumental laboratory and fermentation, distillation and effluent
treatment pilot plants.
- Praj makes
inroads into other states of India….Tamilnadu is first.
1991/93:
- On the technical front, Praj undertook in-house
development of Non-molasses (Starch based) technology and engineering for
grains and tubers in 1993. Whilst in India most alcohol is produced from
cane molasses route, Praj
realized the importance of grains and tubers in the production of alcohol,
a prevalent practice in the west.
- Molasses was decontrolled and the
entire industry went through a change phase. Grain based distilleries were
being looked upon favorably. A dual route system was developed for cane
molasses and grains.
- At the same time, Praj also drew up a plan to
diversify into synergistic fields like Brewery Engineering and plate heat
exchangers which would make Praj
a full Service Company for technology, process equipment and systems for
industries it directly served.
1993/95:
- Going Public
and Listing on the Stock Exchanges in India, which was oversubscribed 7
times.
- Praj also decided to spread its presence in the international market. PRAJ FAR EAST PTE LTD, Singapore
was established as a hub for the ASEAN and the Far East.
- The first
international order from Indonesia for multi-pressure distillation was
contracted. It also incorporated the patented self-cleaning Flubex
evaporator for concentration of distillery spent-wash.
- Major order
from the Philippines amidst global competition was contracted for multi
route plants. Praj
continues to score in the South East Asian Markets.
1996/99:
- Praj restructures
with an aim to streamline the Company's operations and achieve greater
focus in its strong technologies.
- Praj increased
its focus on its primary lines like ethanol technology and equipment, brewery
engineering, fruit processing industry.
- Praj commissions
several grain based ethanol plants in India.
1999/00:
- Praj ventured into South America in 2000. An office was set up in
Bogota, Colombia to reach out to South, Central America and Caribbean and
partner customers in the region.
- In the Year
2000, Praj manufacturing
facility was awarded the ISO 9002 and the prestigious ASME U & H
stamps for pressure vessels and heating boilers.
- Fuel Ethanol,
the new driving force in the ethanol industry, has been gaining in its
share of motor fuel not only in the Americas where over 60% of fuel
ethanol is produced, but also in Australia, Thailand and in India.
- Energy saving
multi-pressure distillation systems, introduced by Praj, become an Industry Standard.
- Praj bags technology & engineering orders in South America and the
Caribbeans.
2000/02:
- Praj ties up with
Delta T Corp, USA for Vapor Phase Molecular Sieve Dehydration plants, for
production of Fuel grade ethanol.
- The first MSDH plant in India went on stream
in May 02.
- Praj enters into
East European Market with engineering order for a grain-based plant.
- Praj launches
Multi-feed & Multi-product Ethanol technology for round the year
distillery operation.
- Application engineering completed for
Cane juice and Sugar Beet to ethanol process technology.
- Praj bags an
order for Multi-feed & multi-product plant in Maharashtra, for
Vaidyanath SSK Limited.
2002/04:
- Praj Enters in to
Australian Market with First technology and engineering order for
green-field Fuel ethanol production plant
- Launch of Matrix - The Innovation
Center for advanced applied research in the field of ethanol and brewing
process.
- Praj opens three
new offices overseas - Johannesburg, Bangkok and Sharjah.
- Praj commissions
South East Asia's first Secondary Juice to Ethanol Plant at Vaidyanath
SSK, Pangri, Maharashtra.
- Praj is Gold
Sponsor to World Ethanol Conference an Annual worldwide yearly conference
in London.(2003)
- Praj participates
in the National Planning Commissions Policy on Biofuels.
- Praj develops
Sweet Sorghum to Ethanol process.
- Praj helps with
1200-1400 acres of pilot cultivation of Sweet Sorghum in India. Trials
completed in Australia also.
- Praj attains
leadership in fuel ethanol plants in India with over 70% marketshare.
- Praj crosses the
1 billion turnover mark.
- Received 6 major orders for fuel
ethanol in South/Central America. Establishes lead over Brazilian &
European Technology Companies in South America.
- Praj received
ICORE award for the leadership in Biofuels.
- Praj's Chairman received Distinguished
Alumnus Award from IIT, Mumbai.
- Praj commissions
a unique wastewater treatment plant in Colombia. This technology was
developed inhouse.
- Praj announces
2004-05 as The Year of Innovation.
- Praj is Prime
(Platinum) Sponsor to World Ethanol Conference an Annual worldwide yearly
conference in London.(2004)
2005:
- Praj commissioned
two large size ethanol plants in Colombia.
- DSIR honors Praj for exports in in-house R&D based technology.
- Exclusive Export Oriented Unit (EOU) established.
- Brewery Manufacturing facility near
Pune (Sanaswadi, Unit-2) acquired.
- Praj acquires
worldwide rights for Molecular Sieve based dehydration technology from
Delta-T.
- ICRA certified Praj as A1+ category company for short term finance.
- ESOP (Employees Stock Option Plan)
declared.
- Praj was the
prime (Platinum) sponsor for World Ethanol Event (2005).
- Praj sponsors
major ethanol events worldwide.
2006:
- All five large sized ethanol plants in
Colombia on stream for commercial production from March 2006 onwards.
- Breakthrough in European Market -
received contract from British Sugars.
- Breakthrough in US market. Receives two
major contracts to install large size ethanol plants.
- Praj expands
R&D Center.
- Venture Capitalist Vinod Khosla and Marubeni
Corporation invests in Praj.
- Skid Mounted Ethanol Plant designed,
manufactured and shippedto CSR Australia.
PRESS RELEASES
Pune, October 23, 2008: Praj
Industries
(Praj), globally leading Biofuels Technology Company,
today announced its unaudited financial results for Q2 FY2009.
Q2FY09 Performance Review:
Income from operations increased by 17% at Rs 2002 Millions
(Rs. 1704.300 Millions). This is after giving due effect for forex loss
of Rs. 113.300 Millions (as against a gain of Rs. 74 Millions, on account of
revaluation of unadjusted advances during the corresponding quarter in
FY08). This provision does not entail any actual loss or cash outflow.
EBIDTA increased 30% from Rs. 289.200 Millions in Q2FY08 to
Rs. 376.800 Millions in Q2FY09. The EBIDTA margin also showed improvement
at 19% despite the forex losses due to revaluation of unadjusted advances.
After a tax component of Rs. 55.700 Millions, PAT stood at
Rs.301.800 Millions (Rs. 270.900 Millions).
H1FY09 Performance review:
Income from operations increased by 15% from Rs. 3097.100
Millions in H1FY08 to Rs. 3550.400 Millions in H1FY09.
EBITDA increased from 64.36 in H1FY08 to Rs. 695.100
Millions in H1FY09. EBDITA margin in H1FY09 receded 100 basis point at the back
of forex losses related to revaluation of unadjusted advance.
PAT receded due to tax component of Rs. 109.300
Millions (as against Rs. 62.500 Millions in H1FY08)
Commenting on the performance, Mr. Shashank Inamdar,
Managing Director, Praj Industries Ltd., said:
“Our performance reflects stability of continued operations
in varying operating scenarios. The order book is at Rs. 9500
Millions. We are looking at pursuing our business targets with
business opportunities coming from increased share of the business across
geographies. A proof of this is to be found in the recent order based on the
‘farm-to-fuel’ model to be installed in Africa where we are providing
agri-consultancy as well as the processing plant for ethanol. ”
Key Developments during the quarter and
first half:
· The Union
Cabinet cleared the National policy on Biofuels which set a vision of 20%
blending of biofuel and ethanol with diesel and petrol by 2017.
· Praj entered into an equipment supply agreement with Maple Energy
plc, an AIM listed integrated independent energy company with assets and
operations in Peru. Praj will
provide the fermentation, distillation, and dehydration equipment for its
Ethanol Project in Peru which has a projected capacity to produce approximately
400,000 litres per day of fuel-grade ethanol.
· Praj has contracted an order from Africa region for an ethanol plant
which follows the farm-to-fuel model. This involves providing agri-consultancy
and ethanol plant on a turnkey basis.
· Praj received a repeat order for its
‘skid-mounted ethanol dehydration plant’ from CSR, Australia. This is an
innovation in engineering and delivery model from Praj which reduces erection time considerably. This is the
second such order from CSR.
· Praj successfully commissioned the
third plant in Europe for Anklam Bioethanol in Germany. Anklam Bioethanol is a
subsidiary of Danisco, one of the largest sugar producers in Europe. The
plant is processing beet syrup for ethanol production. While sharing
their experience, the Managing Director of Anklam Bioethanol, Mr. Ngo
Kuchenbrandt said, “Praj Industries has handled the project in
a very professional way, as per our expectations. We would also like to
emphasize that Praj adhered to
the schedules and delivery dates perfectly. We can always recommend Praj Industries as a very reliable Partner to other investors all over
the world.”
· The first ethanol
plant in Philippines for Leyte Agri has been commissioned and is already
supplying ethanol to the Philippines program.
About Praj Industries Limited:
Praj is
a global Indian company that offers innovative solutions to significantly add
value in bio-ethanol, bio-diesel
and brewery plants and related wastewater treatment systems
for customers, worldwide. Praj
is a knowledge
based company with expertise and experience in Bioprocesses
and engineering. It delivers know how, License,
engineering design, plant & equipment, project
management, commissioning and customer care and turnkey
projects. Led by an accomplished and caring leadership, Praj is a socially responsible
corporate citizen. Praj, a
founding member of Global Growth Companies (part of World
Economic Forum), is listed on the Bombay and
National Stock Exchanges of India. BioCnergy
Europa B.V., The Netherlands, Praj Jaragua Bioenergia S.A., Brazil are JV Companies of Praj, while Praj Schneider, USA is a wholly owned subsidiary.
Maple Etanol, Peru selects Praj for their Ethanol Project.
Pune – June 24, 2008: Praj Industries, the
global leading biofuels technology provider has been awarded a contract by
Maple Etanol S.R.L., Peru, a subsidiary of Maple Energy plc, a leading
integrated energy company, for a 400,000 litres per day distillery for
production of fuel grade ethanol based on clarified cane juice as feedstock.
The ethanol project is located in the Piura Region on the northwest coast of
Peru.
Praj will supply Maple Etanol
S.R.L. technology, engineering and equipment for fermentation, distillation,
and dehydration plants. The total contract value is approximately Rs. 420
Millions (US$10 million). The first shipment of equipment under the
contract is expected to arrive in Peru in the middle of 2009.
This contract follows an earlier contract form the South, Central American
region wherein Praj was awarded
two contracts for installation of large ethanol plants by Pantaleon
Group,Guatemala, one of the oldest & largest sugar groups from Central
America. One of them is for 450,000 LPD (40 MGPY) at BioEtanol in
Guatemala which is managed by Pantaleon and another for 300,000 LPD (27 MGPY)
at Ingenio Monte Rosa, Nicaragua owned by Pantaleon. The contract value is Rs.
1100 Millions (US$ 26 million)
Selection of PRAJ by progressive
ethanol project sponsors like Maple and Pantaleon is yet another endorsement of
PRAJ's technological, engineering and project execution capabilities.
Praj Awarded the Star SME (Small and Medium Enterprises)
Award
Pune – June 23, 2008:
Praj Industries, leaders in biofuels
technology, has been conferred ‘Star SME Award 2007’ by The Business
Standard. The award has been conferred at the hands of Chief Guest
Hon’ble Shri. L. K. Advani in an Award Ceremony held in Mumbai. Business Standard
is celebrating the spirit of entrepreneurship by conferring the Business
Standard Awards to some of the most enterprising and successful entrepreneurs.
The Business Standard chose top 1000 companies
from India who have not only scaled up their businesses in a relatively short
time but have done so in the phase of stiff competition from players who are
far bigger and far established. Praj
has been honored as The Star SME amongst 1000 companies. It has done this in a
tough and challenging field like biofuels where there has been no
precedence.
“The award represents our performance for the last
year and it feels good to be recognized. It is a reward deserved by all
the Prajites and I am truly happy to receive it on their behalf, said Pramod Chaudhari, Chairman Praj,
at the award ceremony in Mumbai.
Praj
has been gaining a firm footing worldwide. Starting with acquisition of
an Engineering Company in the US, known as Praj Schneider, it is creating a more on-ground presence to serve customer
globally with a deeper local understanding. It has formed a Joint Venture
Company in The Netherlands, BioCnergy Europa B.V., along with Aker Solutions,
the leading Engineering, Procurement and Construction Company, to offer
customized solutions to European biofuels industry. Praj has entered into Brazil with the
intention of creating a larger base to serve the growing Brazilian biofuels
market through JV called Praj
Jaragua Bioenergia. Praj
is also working in the cellulosic biomass to ethanol technology and has already
filed a patent for this. Praj
has invested close to US$ 15 million in enhancing its research and technology
base in India.
Pantaleon
selects PRAJ's technology & equipment for two large capacity ethanol plants
Pune – May 22, 2008: Pantaleon Group,Guatemala, one of the oldest &
largest sugar groups from Central America, has awarded 2 large ethanol plant
contracts to PRAJ. One of them
is for 450,000 LPD (40 MGPY) at Bio Etanol in Guatemala which is managed by
Pantaleon and another for 300,000 LPD (27 MGPY) at Ingenio Monte Rosa,
Nicaragua owned by Pantaleon.
PRAJ's scope includes supply of technology, engineering and main plant
& equipment for Fermentation, Vacuum Distillation using very low pressure
exhaust steam , Molecular Sieve Dehydration and Evaporation of Vinasse using
Flubex self-cleaning fluidized bed evaporators . Technology providers from
Brazil and Europe were also in competition for this award.
These plants are based on the cutting-edge technology from PRAJ and will be the first-of-its-kind
in Central American region that will evaporate vinasse to high concentration so
as to use the concentrated vinasse as a liquid fertilizer.
Selection of PRAJ by a
progressive sugar group like Pantaleon is yet another endorsement of PRAJ's
technological, engineering and project execution capabilities.
May 07, 2008
Praj FY 2007-08 audited results: 60% growth in PBT over
previous fiscsal: Income grows at 20%.
Pune – May 07, 2008: The Board of Directors of Praj
Industries, the global biofuels technology Company, announced its annual
audited results for the fiscal year 2007-08,following the Board Meeting held on
7th May, 2008.
The Company has achieved a sterling growth in margins with
PBT at Rs. 1743.800 Millions (Rs. 1103.600 Millions) and PAT at Rs. 1535.400
Millions (Rs. 865.200 Millions), against growth in total income of 20% at Rs.
7403 Millions (Rs. 6164 Millions). EBIDT margin at 20% has also shown a
smart growth over previous fiscal where EBIDT stood at 17%. Basic EPS stood at
Rs. 8.55 per Rs. 2/- share.
“The margins have shown significant improvement, despite
increase in steel prices(input), largely due to our ability to drive down cost
as a result of value engineering exercises undertaken by us as well as the
product mix,” said Shashank Inamdar, CEO & MD, Praj.
The Company has also benefited due to its manufacturing
activities in the Special Economic Zone at Kandla. The Company has begun
exports from this facility since its inauguration in August, 2007.
Based on business concluded till date, orders on hand stand
at Rs. 9500 Millions, with orders from all geographies including a recent US$
25 million order for two Greenfield plants for Pantaleon in Guatemala, which is
one of the largest sugar group in Central America.
“With our global strategy in place and our total solutions
for different regions, we can already see a traction in our business from
across the world. We have also intensified our activities in the areas of new
technologies so as to grow the scope of our business,” said Pramod Chaudhari,
Chairman, Praj.
Praj recently inaugurated its
Advanced R & D facility near Pune
where the Company is conducting research on second generation biofuels. The
Company has already filed patents for specific processes and has intensified
its R & D activities for sustainable biofuels.
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.49.46 |
|
UK Pound |
1 |
Rs.73.17 |
|
Euro |
1 |
Rs.62.96 |
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 |
YES |
|
--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 |
|