MIRA
INFORM REPORT
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Report Date : |
19.11.2008 |
IDENTIFICATION DETAILS
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Name : |
UNIMERS INDIA LIMITED |
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Registered Office : |
2/2 TTC Industrial Area, ( D Block) M.I.D.C, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.11.1987 |
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Com. Reg. No.: |
0.45327 |
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CIN No.: [Company
Identification No.] |
L99999MH1987PLC045372 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMU03477F |
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PAN No.: [Permanent
Account No.] |
AABFU1023C |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
stock exchange. |
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Line of Business : |
Manufacturer EPM/EPDM which are used in various market
sectors like tyres and tubes, wires and cables, plastics, etc. A new product
– Herelline – EPDM – is under trial, which has several new applications in roof
sheeting, URD cables, telecom cables, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track records.
Financial position is poor. Payments are slow. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory: |
2/2 TTC Industrial Area, ( D Block) M.I.D.C, |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. G P Goenka |
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Designation : |
Chairman |
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Name : |
Mr. Sukhendu Ray |
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Designation : |
Director |
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Name : |
Mr. Shrivardhan Goenka |
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Designation : |
Director |
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Name : |
Mr. Tan Chean Liang Kelvin |
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Designation : |
Director |
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Date of Birth/Age : |
34 Years |
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Qualification : |
LLB (Honours) at |
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Experience : |
Mr. Tan Chean Liang Kelvin has an experience of more than 7 years in
the Legal filed. He has experience of working with various companies like
Starwood Asia Pacific Hotels and Resorts Pte Limited Fujitsu Asia Pte
Limited, Star-hub Limited and also in various Partnership Firms for
counseling and providing his valuable advice and opinions in the legal
matters. |
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Date of Appointment : |
30.06.2007 |
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Name : |
Mr. R S Agarwal |
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Designation : |
Director |
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Date of Birth/Age : |
65 Years |
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Qualification : |
B.Sc, B.E (Chemical Engg) Diploma in Industrial Engineering,
Proficiency in Boiler Operation Engineering |
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Experience : |
He has 9 ½ years Industrial experience as Process Engineer in a
leading paper mill of |
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Date of Appointment : |
12.04.2006 |
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Other Directorship: |
Deccan Cements Limited Elegant Marbles and Granite Industries Limited GVK Jaipur Kishangarh Express Way Limited Madras Cements Limited Suryalakshmi Cotton Mills Limited Surylata Spinning Mills Limited Tamilandu News Print and Papers Limited Torrent Cables Limited |
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Name : |
Mr. V B Dalal |
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Designation : |
Director |
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Date of Birth/Age : |
62 Years |
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Qualification : |
B.Com, FCA |
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Experience : |
He has a post qualification experience of more than 33 years in the field
of Audit and Direct Taxation. He has handled international assignments on
internal and operation an academic experience of more than 11 years as a part
time lecturer in Accountancy. Having worked with the |
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Date of Appointment : |
12.04.2006 |
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Other Directorship: |
Maharashtra Polybutenses Limited Oxides and Specialities Limited |
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Name : |
Mr. M K Mittal |
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Designation : |
Nominee- IFCI Limited |
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Name : |
Mr. S P Gupta |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
53 years |
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Qualification : |
B.Tech. (Chemical Engineer) and MBA |
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Experience : |
31 Years experience in reputed chemical Industries like J K Synthetics
Limited, Vardhaman Acrylics Limited Parupati Arcylon Limited, Consolidated
Fibres and Chemicals Limited, Duncans Industries Limited. He has expertise in
turn around of companies through innovative ways of productivity enhancement
and cost reduction. |
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Date of Appointment : |
28.06.2007 |
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Other Directorship: |
Duncans Industries Limited |
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Name : |
Mr. L K Gulgani |
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Designation : |
Managing Director |
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Date of Birth/Age : |
52 Years |
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Qualification : |
B.Tech (Chemical Engineer) and MBA |
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Experience : |
Mr. L K Guglani has over 31 years of experience in Chemical and
Petrochemical Industry. He has experience of working with various industries
in technical as well as commercial assignments. He has served as Director on
the Board of a number of Companies like Maharashtra Polybutense Limited and
Gujarat Carbon and Industries Limited |
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Date of Appointment : |
18.10.2006 |
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Other Directorship: |
Duncans Tea Limited Gujrarat Carbon and Industries Limited |
KEY EXECUTIVES
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Audit Committee: |
Mr. R S Agarwal (Chairman of Committee) Mr. Sukhendu Ray ( Member) Mr. Shrivardhan Goenka ( Member) |
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Investors Grievance Committee: |
Mr. V B Dala (Chairman of Committee ) Mr. S P Gupta ( Member) |
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Share/ Debenture Transfer Committee: |
Mr. S P Gupta (Chairman of Committee) Mr. Deepak Bhandari ( Member) |
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Remuneration Committee: |
Mr. R S Agarwal (Chariman of Committee) Mr. V B Dalal (Member) Mr. Sukhendu Ray (Member) |
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Name : |
Ms. M.K. Mehta |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer EPM/EPDM which are used in various market
sectors like tyres and tubes, wires and cables, plastics, etc. A new product –
Herelline – EPDM – is under trial, which has several new applications in roof
sheeting, URD cables, telecom cables, etc. |
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Products : |
·
Herlene EPDM ·
Herlene IM ·
New Intorductions
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GENERAL INFORMATION
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Bankers : |
·
State Bank of ·
State Bank of Travancore ·
State Bank of ·
Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Lodha and Company Chartered Accountant |
CAPITAL STRUCTURE
As on 31.03.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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60000000 |
Equity Shares |
Rs. 10/- each |
Rs. 600.000 Millions |
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25000000 |
0.5% Cumulative Non Convertible Redeemable Preference Shares |
Rs. 10/- each |
Rs. 250.000 Millions |
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Total |
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Rs. 850.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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53006665 |
Equity Shares |
Rs. 10/-
each |
Rs. 530.067
Millions |
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10800000 |
0.5% Cumulative Non-Convertible Redeemable
Preference Shares |
Rs. 10/-
each |
Rs. 108.000
Millions |
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Total |
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Rs. 638.067 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
638.067 |
638.067 |
638.100 |
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2] Share Application Money |
112.428 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
[625.158] |
[486.227] |
[448.600] |
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NETWORTH |
125.337 |
151.840 |
189.500 |
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LOAN FUNDS |
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1] Secured Loans |
418.762 |
402.327 |
397.900 |
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2] Unsecured Loans |
74.250 |
142.496 |
151.300 |
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TOTAL BORROWING |
493.012 |
544.823 |
549.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
618.349 |
696.663 |
738.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
638.987 |
687.004 |
733.000 |
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Capital work-in-progress |
25.792 |
0.000 |
1.200 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
64.129
|
80.142 |
51.100 |
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Sundry Debtors |
9.790
|
47.615 |
32.300 |
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Cash & Bank Balances |
17.698
|
18.758 |
9.800 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
44.570
|
41.090 |
70.500 |
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Total
Current Assets |
136.187
|
187.605 |
163.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
174.954
|
170.784 |
153.400 |
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Provisions |
7.663
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7.162 |
5.800 |
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Total
Current Liabilities |
182.617
|
177.946 |
159.200 |
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Net Current Assets |
[46.430]
|
9.659 |
4.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
618.348 |
696.663 |
738.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
427.608 |
547.067 |
417.500 |
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Other Income |
47.240 |
11.691 |
2.400 |
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Total Income |
474.848 |
558.758 |
419.900 |
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Profit/(Loss) Before Tax |
[138.338] |
[37.196] |
[102.000] |
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Provision for Taxation |
0.593 |
0.473 |
0.000 |
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Profit/(Loss) After Tax |
[138.931] |
[37.669] |
[102.000] |
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Earnings in Foreign Currency : |
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Export Earnings |
58.343 |
67.013 |
NA |
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Imports : |
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Raw Materials |
43.997 |
65.236 |
NA |
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Stores & Spares |
6.571 |
1.856 |
NA |
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Total Imports |
50.568 |
67.092 |
NA |
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Expenditures : |
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Raw Material Consumed |
305.251 |
331.871 |
249.400 |
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Excise Duty |
0.000 |
0.000 |
57.000 |
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Power and Fuel Cost |
0.000 |
0.000 |
67.700 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
17.600 |
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Employee Cost |
0.000 |
0.000 |
27.600 |
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Selling and Administration Expenses |
0.000 |
0.000 |
23.000 |
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Miscellaneous Expenses |
0.000 |
0.000 |
12.900 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
1.200 |
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Goods and Work in- progress |
25.842 |
[9.714] |
0.000 |
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Interest |
40.387 |
41.302 |
16.500 |
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Depreciation & Amortization |
48.597 |
48.486 |
49.000 |
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Other Expenditure |
189.164 |
190.549 |
0.000 |
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Exceptional Item |
3.945 |
[6.540] |
0.000 |
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Total Expenditure |
613.186 |
595.954 |
521.900 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2008 Full Year |
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Sales Turnover |
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|
52.000 |
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Other Income |
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|
3.600 |
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Total Income |
|
|
55.600 |
|
Total Expenditure |
|
|
149.900 |
|
Operating Profit |
|
|
[94.300] |
|
Interest |
|
|
38.100 |
|
Gross Profit |
|
|
[132.400] |
|
Depreciation |
|
|
48.600 |
|
Tax |
|
|
0.300 |
|
Reported PAT |
|
|
[181.300] |
|
Dividend (%) |
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|
0.000 |
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 1st
Quarter |
30.09.2008 2nd
Quarter |
|
Sales Turnover |
|
8.500 |
19.100 |
|
Other Income |
|
0.000 |
0.000 |
|
Total Income |
|
8.500 |
19.100 |
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Total Expenditure |
|
19.800 |
39.400 |
|
Operating Profit |
|
[11.300] |
[20.300] |
|
Interest |
|
8.300 |
8.700 |
|
Gross Profit |
|
[19.600] |
[29.000 |
|
Depreciation |
|
12.100 |
12.200 |
|
Tax |
|
0.000 |
0.000 |
|
Reported PAT |
|
[31.700] |
[41.200] |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
6.29 |
3.20 |
2.25 |
|
Long Term Debt-Equity Ratio |
4.31 |
1.99 |
1.41 |
|
Current Ratio |
0.43 |
0.48 |
0.50 |
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TURNOVER RATIOS |
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Fixed Assets |
0.37 |
0.48 |
0.32 |
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Inventory |
6.76 |
9.51 |
6.87 |
|
Debtors |
16.99 |
15.61 |
8.78 |
|
Interest Cover Ratio |
[2.43] |
[0.06] |
[5.18] |
|
Operating Profit Margin(%) |
[10.13] |
7.41 |
[8.74] |
|
Profit Before Interest And Tax Margin(%) |
[20.09] |
[0.37] |
[20.48] |
|
Cash Profit Margin(%) |
[18.52] |
0.71 |
[12.69] |
|
Adjusted Net Profit Margin(%) |
[28.48] |
[7.07] |
[24.43] |
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Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
|
Return On Net Worth(%) |
0.00 |
0.00 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
History:
Incorporated in Nov.'87, Herdillia Unimers (HUL) was promoted by
Herdillia Chemicals in technical and financial collaboration with Uniroyal
Chemicals Company, US. Commercial production commenced in 1993.
In Jun.'92, the company came out with a public issue of Rs. 3.330
Millions equity shares at par and Rs. 0.900 Milion 12.5% PCDs of Rs 200 each,
aggregating Rs 213.300 Millions, to part-finance the Rs 825.000 Millions
project to manufacture EPM/EPDM.
The company manufactures EPM/EPDM which are used in various market
sectors like tyres and tubes, wires and cables, plastics, etc. A new product --
Hereline-EPDM -- is under trial, which has several new applications in roof
sheeting, URD cables, telecom cables, etc.
The company, in 1995-96, introduced Herlene-EDPM in new application areas like
lubricating oil, telecom jacket compound, scooter and architectural profiles,
lighting gaskets, bitumen modifications and water-proofing membranes.
During the year 1999-2000, the company produced 5333 MT of EPDM Rubber,
achieveing a 49% capacity utilisation.
The company is planning to focus on auto profile sector and also planning
to promote EPDM for air-conditioning insulation.
OPERATIONS:
A major fire broke out in the Finishing Section and Warehouse area of the
Company's plant at Navi Mumbai in the early hours of October 24, 2006. The same
was controlled in around five hours. The Warehouse and Finishing section has
suffered extensive damage. There was a substantial loss of stocks also. Four
persons suffered injuries and there were two causalities. Due to the same, the
operations of the Company came to a complete halt and no production activity
took place thereafter until the end of the financial year. The Company has
filed timely claims with the insurers for losses on account of stocks and Fixed
Assets. The damaged sections have been restored and plant operations have
restarted from June, 2007.
During the year, Company produced 3657 MT of EPDM as against previous
period quantity of 4914 MT. This represents about 26% decrease in production
over previous year.
During the financial year 2006-07, the Company sold 3091 MT in the domestic
market against the previous year sale of 4133 MT. During the year 550 MT was
exported as against 715 MT in the previous year.
In terms of sales realisations, though there was some improvement over
the previous year, but the margins were adversely affected due to high input
costs. The profits were further affected adversely on account of cessation of
production activity.
FINANCE:
Consequent to sanction of CDR package in January, 2006 the company was on
recovery path and had substantially implemented the CDR package but the Fire
Incident in the plant on October 24, 2006 led to complete stoppage of the
manufacturing by almost eight months disturbing the whole recovery process of
the company.
In view of the above facts, the re-structuring of CDR package sanctioned
in January, 2006 has become imminent. The Company has submitted a proposal for
restructuring of CDR package which is being considered and the Company is
hopeful that the same will be sanctioned in due course.
As per the condition for approval of CDR package, the Company was required to
reduce the paid up capital by 70%. A resolution was passed unanimously at the
Extraordinary General Meeting held on June 14, 2006. The Company has obtained
the necessary confirmation from High Court Bombay for the said Resolution in
April 7, 2007 and the Order of High Court,
Availability of adequate working capital continues to be a cause of concern for
achieving higher production levels.
FUTURE OUTLOOK:
The EPDM market globally has undergone a demand-supply gap correction after a
surplus situation prevailing through years 2004 and 2005. Because of the
tighter availability situation, as well as healthy demand growth, realisations
are expected to be stable but due to strengthening of rupee, margins may be
affected adversely.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
a. Industry Structure and
Developments:
Unimers India Ltd is the only manufacturer of EPDM in
b. Opportunities and
Threats:
The Company commands a significant share of the domestic market.
Competition from EPDM manufactures located in US, Europe,
c. Risks and Concerns:
Hardening prices for refinery products like Ethylene, Propylene and Furnace Oil
would influence EPDM production cost. The high debt portfolio and shortage of
working capital is another cause for concern. However, the approval of the
Company's revised CDR proposal by its lenders will considerably ease the debt
servicing burden.
d. Internal Control Systems and
their adequacy:
The Management has ensured that necessary internal control systems are
created and maintained in all departments. These internal control procedures
are adequate and commensurate with the size of the Company and nature of its
business. The statutory and internal audits carried out by professional and
reputed external agencies have not highlighted any major discrepancies,
omissions and the like.
e. Financial and Operational
Performance:
The Company was aggressively pursuing the effective implementation of the
Restructuring proposal but unfortunately a major fire broke out in the
Finishing Section and Warehouse Area of the Company's plant on October 24, 2006
that led to extensive damage in the Warehouse and Finishing section and there
was a substantial loss of stocks also. The Company has restored the damaged
section and operations have been resumed.
In view of the above facts, re-structuring of CDR package sanctioned in
January, 2006 has become imminent. A new restructuring scheme is being
considered by was Banks/ FIs which also provides for augmentation of working
capital.
f. Outlook:
The outlook for the near future appears to be bright for the Company.
Demand is rising in
g. Material Developments in Human
Resources / Industrial Relations fronts including number of people:
Employee relations continue to be cordial. Training and Development activities
are identified, organized and progress monitored as part of Human Resource Development
activities.
Fixed Assets:
·
·
Building
·
Plant and Machinery
·
Machinery Spares
·
Furniture and Fixtures
·
Office Equipments
·
Vehicles
UNAUEDITED
FINANANCIAL RESULTS FOR THE QURATER ENDED 30TH JUNE- 2008
|
|
UNAUDITED |
||
|
|
QUARTER ENDED |
12 MONTHS ENDED |
|
|
PARTICULARS |
30TH
JUNE-08 |
30TH
JUNE-07 |
31st
MAR-08 |
|
Sales / Income from operatons (Gross) |
9.774 |
0.000 |
60.608 |
|
Less:Excise Duty |
1.249 |
0.000 |
8.595 |
|
Net Sales/Income from Operation(Net) |
8.525 |
0.000 |
52.013 |
|
Other Income |
-- |
2.519 |
3.567 |
|
Total Income (1+2) |
8.525 |
2.516 |
55.580 |
|
Expenditure |
|
|
|
|
a) (Increase)/decrease in stock in trade and Work In Progress |
8.120 |
-- |
[31.189] |
|
b) Consumption of raw materials |
-- |
-- |
71.655 |
|
c) Employees Cost |
5.911 |
7.587 |
31.641 |
|
d)Depreciation |
12.149 |
12.136 |
48.594 |
|
e) Power & Fuel |
2.678 |
5.109 |
35.465 |
|
f) Other Expenditure |
3.066 |
8.792 |
42.304 |
|
g)Total |
31.924 |
33.624 |
198.469 |
|
Interest |
8.277 |
8.135 |
38.117 |
|
Exceptional Items |
-- |
-- |
-- |
|
Profit/(Loss) from Ordinary Activities
before Tax (3) - (4+5+6) |
[31.676] |
[39.240] |
[181.060] |
|
Tax expenses |
0.014 |
0.070 |
0.319 |
|
Profit/(Loss) from Ordinary Activities after
Tax (3) - (4+5+6) |
[31.690] |
[39.310] |
[181.325] |
|
Extraordinary Items (net of Tax expense
Rs. Nil) |
[31.690] |
[39.310] |
[181.325] |
|
Profit/(Loss) for the period(9-10) Paid-up equity share capital (Face
value of Rs.10 each) |
159.020 |
530.067 |
159.020 |
|
Reserves Excluding Revaluation Reserve as per balance sheet of
previous accounting year |
-- |
-- |
|
|
Earnings Per Share (EPS) |
|
|
|
|
a) Basic and diluted EPS before extraordinary
items for the period, for the year to date and for the previous year (Not
Annualised) |
[0.199] |
[0.074] |
[1.140] |
|
b) Basic and diluted EPS after
extraordinary items for the period, for the year to date and for the previous
year (Not Annualised) |
[0.199] |
[0.074] |
[1.140] |
|
Public shareholding |
|
|
|
|
- Number of Shares |
7891619 |
26305391 |
7891619 |
|
- Percentage of shareholding |
49.63% |
49.63% |
49.63% |
Notes:
- The above
results were recommended by the Audit committee and were taken on record
at the meeting of Board of Directors held on July, 25th 2008.
- At the Board
meeting held on 31st March,2008 the Company’s Accounting Year
commencing from April1,2007 and ending on March 31,2008 be extended so as
to cover the period of 18 months ending September 30,2008 and that the
accounts be prepared for the said accounting year for period of eighteen
months.
- The Company
has incurred losses in the current year which together with accumulated
losses has exceed 50 percent of the net worth. Although the accumulated losses exceed
the net worth of the Company, these results have been prepared by the
Management on a “going concern” basis taking into account the financial
support of promoters/shareholders, the long term restructuring package
agreed and finalized with financial institutions and banks and also one
time settlement provided by ASREC (India) Ltd. (Assignee appointed by UTI
for recovery of its dues).
- There was a
fire on October 24, 2006 in the finishing area of the plant resulting in
substantial losses of stocks and fixed assets and consequently complete
stoppage of production activity. The plant resumed its operations in the
month of July – 2007 with very low capacity utilization resulting into
higher losses during the quarter. The plant as again shut down from 15th
October, 2007 for want of working Capital and has not resumed till date.
- The Company
has declared formal closure of its manufacturing operations at Navi
Mumbai, with effect from June 26, 2008, as per the relevant provisions of
The Industrial Disputes Act, 1947. The dues and compensation payable to
all the workmen affected by the closure is being determined and will be
accounted for in the subsequent quarter.
- The Company
is primarily engaged in one segment i.e. EPDM rubber.
- There were no
investors’ complaints pending at the beginning and at the end of the
quarter. During the quarter 155 complaints were received and were disposed
of.
- In view of
carry forward unabsorbed losses and depreciation no provision for current
tax is required and as a matter of prudence deferred tax asset has not
been recognized.
- The Previous
period figures have been regrouped and rearranged wherever necessary.
Quarterly annual results are not comparable with the figures of
corresponding periods of the previous year for the reasons stated in Para
3 above.
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.
The 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.49.68 |
|
UK Pound |
1 |
Rs.74.64 |
|
Euro |
1 |
Rs.62.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES| |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
28 |
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 |
|