MIRA
INFORM REPORT
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Report Date : |
20.11.2008 |
IDENTIFICATION DETAILS
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Name : |
MEL SYSTEMS AND SERVICES LIMITED |
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Registered Office : |
Plot # 173, Developed Plots Estate for Electrical, Electronic and
Instrument Industries, Perungudi, Chennai - 600 096, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
07.09.1990 |
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Com. Reg. No.: |
18-19611 |
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CIN No.: [Company
Identification No.] |
U30006TN1990PLC019611 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEM01641D |
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PAN No.: [Permanent
Account No.] |
AAACM4513F |
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Legal Form : |
A Closely held public limited liability company. |
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Line of Business : |
Manufacturer of PCB Tester and Automated Test Equipments. |
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 173000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
Plot # 173, Developed Plots Estate for Electrical, Electronic and
Instrument Industries, Perungudi, Chennai - 600 096, |
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Tel. No.: |
91 - 44 - 24961903 / 904 |
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Fax No.: |
91 – 44 - 24960488 |
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E-Mail : |
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Website : |
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Branches : |
Located at :
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DIRECTORS
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Name : |
Mr. M. M. Murugappan |
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Designation : |
Chairman |
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Address : |
No. 12, |
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Date of Birth/Age : |
12.11.1955 |
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Date of Re-Appointment : |
30.09.2006 |
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Name : |
Mr. Natarajan Ramachandran |
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Designation : |
Managing Director |
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Address : |
Flat No. 3 A, Coral Sands, 54B, |
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Date of Birth/Age : |
18.06.1950 |
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Date of Re-Appointment : |
01.04.2006 |
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Name : |
Mr. R. Eswaran |
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Designation : |
Director |
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Address : |
3 D. Gayathri, |
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Date of Birth/Age : |
29.08.1941 |
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Date of Re-Appointment : |
30.06.2005 |
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Name : |
Mr. Ranganathapuram Vaidyanathan Srinivasan |
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Designation : |
Director |
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Address : |
No. 11, [Old No. 10], Anandam Colony, South Cannal Bank Road,
Madeveli, Chennai – 600028, |
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Date of Birth/Age : |
06.07.1946 |
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Date of Re-Appointment : |
29.09.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 29.09.2007
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Names of Shareholders |
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No. of Shares |
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Venkateswaran M K |
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10000 |
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Sankaran R. Iyer |
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3500 |
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Kannama S. Raman |
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5000 |
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Elangovan |
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2500 |
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V.N. Vijayaraghavan |
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1000 |
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Dayal Singh Dugal |
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1000 |
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A.D. Narasimhalu |
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10000 |
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K. Muthusamy |
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5000 |
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V.N. Srinivasan |
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1000 |
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V.N. Parthasarathy |
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1000 |
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M. Pethachi |
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6660 |
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H. Narayanamurthy |
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8000 |
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Lim Hock Boon |
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25000 |
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Kamlesh Butto |
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800 |
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Sivkumar Srinivasan |
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71585 |
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Sundararaman |
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5000 |
AS ON 29.09.2007
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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8.29 |
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Directors or relatives of directors |
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4.98 |
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Other top fifty shareholders |
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86.73 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of PCB Tester and Automated Test Equipments. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
State Bank of Commercial Branch, Guindy, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Shanker Giri Prabhankar Chartered Accountants |
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Address : |
Guhalaya, Flat B – 7, 179, |
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Associates/Subsidiaries : |
Melss Automation Limited CIN No.: U29196TN2002PLC049505 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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602805 |
Equity Shares |
Rs. 10/- each |
Rs. 6.028
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 |
6.028 |
6.028 |
6.028 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
28.644 |
22.071 |
11.996 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
34.672 |
28.099 |
18.024 |
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LOAN FUNDS |
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1] Secured Loans |
11.390 |
7.440 |
10.139 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
11.390 |
7.440 |
10.139 |
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DEFERRED TAX LIABILITIES |
1.974 |
1.918 |
2.009 |
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TOTAL |
48.036 |
37.457 |
30.172 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
15.365 |
15.680 |
10.519 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.913 |
1.913 |
0.842 |
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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 |
11.713
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8.684
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8.308 |
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Sundry Debtors |
43.135
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33.911
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23.314 |
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Cash & Bank Balances |
2.150
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2.282
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1.572 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
6.348
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2.742
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8.788 |
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Total
Current Assets |
63.346
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47.619
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41.982 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
25.763
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24.130
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15.082 |
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Provisions |
6.825
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3.625
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8.089 |
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Total
Current Liabilities |
32.588
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27.755
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23.171 |
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Net Current Assets |
30.758
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19.864
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18.811 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
48.036 |
37.457 |
30.172 |
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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 |
109.885 |
92.506 |
82.873 |
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Other Income |
3.964 |
4.250 |
3.986 |
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Total Income |
113.849 |
96.756 |
86.859 |
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Profit/(Loss) Before Tax |
15.497 |
21.571 |
4.511 |
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Provision for Taxation |
6.156 |
8.109 |
2.647 |
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Profit/(Loss) After Tax |
9.341 |
13.462 |
1.864 |
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Expenditures : |
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Raw Material Consumed |
22.784 |
14.841 |
11.434 |
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Consumption of stores and spares parts |
22.375 |
14.766 |
15.582 |
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Increase/(Decrease) in Finished Goods |
(1.073) |
0.569 |
1.511 |
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Salaries, Wages, Bonus, etc. |
21.508 |
19.974 |
20.788 |
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Managerial Remuneration |
2.514 |
2.202 |
5.941 |
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Payment to Auditors |
0.102 |
0.095 |
0.192 |
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Interest |
1.558 |
1.562 |
1.570 |
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Insurance Expenses |
0.345 |
0.279 |
0.218 |
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Power & Fuel |
0.874 |
0.780 |
0.931 |
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Depreciation & Amortization |
1.587 |
10.142 |
8.664 |
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Other Expenditure |
25.778 |
9.974 |
15.517 |
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Total Expenditure |
98.352 |
75.184 |
82.348 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
8.20 |
13.91
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2.15 |
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Net Profit Margin (PBT/Sales) |
(%) |
14.10 |
23.32
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5.44 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
19.68 |
34.08
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8.59 |
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Return on Investment (ROI) (PBT/Networth) |
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0.44 |
0.77
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0.25 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.26 |
1.25
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1.85 |
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Current Ratio (Current Asset/Current Liability) |
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1.94 |
1.72
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1.81 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Buildings
- Plant and Machinery
- Office Equipments
- Lab Equipments
- Furniture and Fittings
- Vehicles
DIVIDEND:
The Board declared an interim dividend of 30% on the paid up equity capital of the company for the year ended 31.03.2007 and the same was paid during Aril 2007.
The Board recommended a final dividend of 10% on the paid-up equity share capital for the year 2006-2007.
With this, the total dividend declared for the year ended 31.03.2007 is 40% on the paid up equity share capital of the company.
OPERATIONS:
The company’s Turnover during the year 2006-2007 was higher than the previous year (Growth of 18% over the previous year)
MELSSWIZARD:
Manufacture and Sales of these instruments increased by 15% compared to the previous year. The new model MW48128 is taking sometime to stabilize.
SPECIAL PROJECTS:
They have expanded the reach in this area of Custom ATE’s, Simulators, revamp of legacy systems etc., aimed mainly at the defence segment. They have increased the turnover substantially by 55% compared to the previous year and are looking forward to a robust growth.
AGENCY DIVISION:
The agency division continues to do well. They executed some
prestigious orders for the defence segment for high end functional testers. The
contributions from the other products like Fiber Optic Test and Measuring
Instruments, In-Circuit Testers, Soldering and De soldering stations is on the
rise.
RESEARCH AND
DEVELOPMENT:
During the year, Research and Development team worked on stabilizing the MW48128 testers. They also worked on added features like USB port, Boundary scan Technology etc. The team is also working on providing total test solutions usuaing Melss Wizard as the core tester.
SUBSIDIARY:
The company’s total investment in the subsidiary Melss Automation Limited as on 31.03.2007 amounts to Rs.1.913 millions comprising of 153046 shares at the face value of Rs.10/- per share amounting to Rs.1.530 millions plus share premium paid at Rs.5/- per share on 76528 shares subscribed during rights issue amounting to Rs.0.383 million. The investment in the subsidiary is 51% of the paid up capital of the company. They have attached the subsidiary company’s accounts as required under section 212 of the Companies Act, 1956.
In the two divisions, namely In cirfuit Component Machine
Division and Trading Activity, the nature of business is supplying of capital
goods to mainly to the electronics industry and defence. The growth is linked
to the growth of Hardware industries in
In the recent past, the company has taken several steps to increase the turnover and improve the profitability. The new activities taken by the company in the areas of :
- Developing simulators for defence
- Developing electronic products for defence.
- Adding agencies in the are of telecommunication testing
- Manufacture of confirmed coating remover equipments used in the electronics production in the defence
- Manufacturing facility for fixtures used in automatic test equipment
Bankers Charges
Report as per Registry
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Name of the company |
MEL SYSTEMS AND SERVICES
LIMITED |
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Presented By |
STATE BANK OF |
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1) Date and description of instrument creating the change |
20.12.1995 General Agreement
for the grant of Medium advances to small scale industries and hypothecation
of movables, book debts and other assets. Ancillary
agreement for medium term loan against pledge movables machineries. General agreement
for the grant of Small Industrial Advances and Hypothecation of Movables,
Book Debts and other assets. Agreement for the
grant of Small Industrial Advances. |
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2) Amount secured by the charge/amount owing on the securities of charge |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation /
Pledge of the company’s entire goods, movable and other assets such as book debts,
outstanding moneys, receivables and company’s machinery preset and future. Mortgage secured
by deposit of title deeds of developed plot no. 173 situated in the
Industrial Estate, for electronics and instrument industries, |
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4) Gist of the terms and conditions and extent and operation of the charge. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank Of |
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6) Date and brief description of instrument modifying the charge |
Nil |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Nil |
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This form is for |
Modification of
charge |
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Charge
identification number of the modified |
90283670 |
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Corporate
identity number of the company |
U30006TN1990PLC019611 |
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Name of the
company |
MEL SYSTEMS AND SERVICES LIMITED |
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Address of the
registered office or of the principal place of business in |
Plot # 173, Developed Plots Estate for Electrical, Electronic and
Instrument Industries, Perungudi, Chennai - 600 096, |
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Type of charge |
Others
(Hypothecation of Stocks and Receivables of Raw Material) |
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Particular of
charge holder |
State Bank of Commercial Branch, Guindy, E-Mail: sbicomguindy@vsnl.net |
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Nature of description
of the instrument creating or modifying the charge |
1.
Supplemental
Agreement of Loan-cum-Hypothecation – SME 4 2.
Sanction
Letter |
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Date of
instrument Creating the charge |
10.10.2008 |
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Amount secured by
the charge |
Rs.46.200
millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
As per Modification dated 13.07.2007 Terms of
Repayment: As per Modification dated 13.07.2007 Margin: As per
Modification dated 13.07.2007 Extent and
Operation of the charge: As per the Agreement Others: Fund
based Limits: Cash Credit –
Rs.9.700 millions SME Credit –
Rs.1.500 millions Non-fund based
limits: Letter of Credit
– Rs.25.000 millions Bank Guarantee –
Rs.10.000 millions |
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Short particulars
of the property charged |
Hypothecation of
Stocks and Receivables of Raw Material. Primary Security
– Merchandise covered by bills under LC Collateral
Security – (i) E.M. over factory land and building of the company at Plot
No.173, Developed Plots, Industrial Estate, Perungudi, Chennai – 600 096.
Land measuring 0.508 acres with constructed building thereon of 864 sq
meters. (ii) Hypothecation of Fixed assets. |
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Date of latest
modification prior to the present modification |
13.07.2007 |
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Particulars of
the present modification |
Hypothecation of
Stocks and Receivables of Raw Material. The present
overall limit has been enhanced from Rs.31.200 millions to Rs.46.200
millions. |
AS PER WEBSITE
Subject, known fondly among customers as MEL or MELSS, was formerly a division of the USD 1.5 billion Murugappa Group. MELSS has been at the forefront of cutting edge technology ever since 1982. Over the last two decades they at MELSS have acquired expertise and specialized knowledge in many areas. But, what makes them stand out, is their deep commitment to support and the values and principles that they have inherited from their parent group. Their competencies are spread across a wide range of processes and verticals.
Processes : Production, Inspection, Testing, Rework, Repair, Training, Simulation, Real Time Process Control and Automation.
Verticals :
Competencies : Technology and Process Consulting, Pre-Sales support, Manufacturing & Sourcing, Supply of suitable equipment, Software Development, Customization, Design & System Integration, Implementation and Post Implementation Support.
MELSS Automation Limited is a subsidiary company of MELSS, offering turnkey automation projects and process control systems for the Manufacturing and Process industries.
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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MELSSWIZARD / BOARDWIZARD -
PCB Diagnostic Testers |
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Conformal Coating remover |
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Test Fixtures (Bed of Nails)
Vacuum and Mechanical |
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TRI, |
MDAs / ICTs / Functional
Testers |
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Bare Board Testers, Manual
& fully automated Universal Grid Test Systems |
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International Test
Technologies, |
Functional test and Debug
solution for CPU based boards |
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Spring Contact Probes and
Receptacles |
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Fixture development services
for complex boards |
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Cable Testing, Backplane
Testing, Connector Testing, Wire Testing, Wiring Analysers, Harness Testers
and Power Chord Testers. |
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Chroma ATE, |
ATE's for testing power supplies,
AC/DC sources, Transformer Testers, Power analysers and Electronic loads |
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Pacific Power |
High Power AC Sources,Frequency /voltage converters, AC test
power systems, custom design & packaging |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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TRI, |
Automatic Optical Inspection Systems
for Solder Paste Inspection / Pre- Reflow Inspection / Post Reflow
Inspection, X-ray Inspection Systems |
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Automatic Optical Inspection
Systems for Bare PCB Inspection |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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OK / |
BGA / CSP / Array Package
Rework, Smartheat SMT Rework, Soldering Stations, Fluid Dispensing and Fume
Extraction |
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Automated Production Systems
Inc. |
Screen Printers, Pick and
Place Machines and Reflow Ovens for Low Volume SMT Assembly |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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BPM Microsystems, |
Device Programmers - Single site
and Concurrent, Automated Programmers & In system Programmers |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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Vibration Test Systems |
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Temperature & Humidity
Test Chambers, Environmental Stress Screening Chambers, HALT / HASS Systems,
Thermal Shock Systems, Combined Vibration & Temperature Testing, Dust
Chambers. |
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Ling Electronics (Qualmark) . |
Electro dynamic Shakers / Vibration
Testers, Vibration Test Systems, HALT / HASS Test chambers with combined
Vibration testing. |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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EXFO, |
Network testing - DWDM
Analyzers, Fiber characterization Test Instrumentations (PMD,CD),
Transmission analyzers (SDH, Nex gen SONET/SDH), Outside plant Test and
Measurement solutions (Laser Source, Power meter, Automated test sets) |
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RF Test Instruments - VXI
Modules, Switches |
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SAGE Instruments, |
Testers for Voice over IP,
Packets, DSL |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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FISO, |
Fiber Optic Stress, Strain,
Temperature sensors and signal conditioners |
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EXFO, |
R&D and Manufacturing
System Testing, Optical Layer and Ethernet Testing, Transport and datacom testing,
Fiber and Waveguide analyzers, Photonics manufacturing. |
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IPF |
Fiber Optic - Raman Amplifiers
/ EDFAs |
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Fiber Bragg Gratings, Fiber
Bragg Grating Writing Systems and Dispersion Compensators |
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A Wide Product range catering
to Universities, Research Laboratories, Photonics Laboratories |
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Distributed Leak Detection
(Pipes/Cables) |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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Custom ATEs |
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Simulators |
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Turnkey Projects |
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Radar Test Systems,
Communication Test Systems, Engine Test Systems |
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Functional and In-circuit ATEs
for PCBs and LRUs, Lasar Simulator Software |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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Replacement of Legacy Testers and
Rehost of TPSs. Redesign / Upgradation / Modernisation of Obsolete Military
Electronic Systems including ATE's & Simulators, Legacy System Repair,
Revamp, Software Rehost, AMC etc. |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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American Systems, |
Virtual Maintenace trainers
formilitary aircrafts, Web enabled Computer based Training modules (CBT's) |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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MELSS AUTOMATION LIMITED, |
Design, Engineering and
Execution of Customized Automation and Control Projects with Turnkey
responsibility |
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PLC based SCADA and Factory Automation
Systems |
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Batching, Industrial Weighing
and Material Handling Automation Systems |
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Custom Software Development,
Mini ERP Implementation for Process / Manufacturing Sector |
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End to End Turnkey Solutions for
Tea, Sugar, Ferro Alloy and similar process industries |
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CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.74 |
|
|
1 |
Rs.74.37 |
|
Euro |
1 |
Rs.62.78 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--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/normal. |
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 |
|