MIRA
INFORM REPORT
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Report Date : |
25.10.2008 |
IDENTIFICATION DETAILS
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Name : |
PRAJ INDUSTRIES
LIMITED |
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Registered Office : |
"PRAJ HOUSE",,
Bavdhan,
Pune – 411021, |
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Country : |
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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 : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 20000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established company having satisfactory track. Trade relations are fair. General
financial position is satisfactory. Payments are usually correct and as per
commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered/Head Office : |
"PRAJ
HOUSE",, Bavdhan, Pune 411
021, |
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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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Address 1: |
2nd Floor, City
Mall, |
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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, |
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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, |
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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, |
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Factory 2: |
Rabale, Navi Mumbai 400 701, |
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Factory 3: |
EOU-. Dhanori, Pune 412 105, |
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Factory 4: |
Kandla SEZ: Gandhidham, Kutch 370 230, |
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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 |
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INTERNATIONAL |
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Address: |
Calle 70 A, No. 7-36. Apto 502, Edificio Luby, |
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Telefax
No.: |
91-57-1-2122162. |
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Email: |
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Address: |
Post Box # : 41738 |
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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, |
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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, |
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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 |
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 |
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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
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394.580
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Cash & Bank Balances |
1574.054
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373.844
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294.746
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Other Current Assets |
290.037
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258.903
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107.189
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Loans & Advances |
219.281
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313.220
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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
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3788.916
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1126.625
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Provisions |
97.138
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12.057
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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
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PARTICULARS |
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30.06.2008 |
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Type |
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1st
Quarter |
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Sales Turnover |
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1547.600 |
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Other Income |
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|
20.300 |
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Total Income |
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1567.900 |
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Total Expenditure |
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1249.500 |
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Operating Profit |
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|
318.400 |
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Interest |
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|
0.000 |
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Gross Profit |
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|
318.400 |
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Depreciation |
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|
17.300 |
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Tax |
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|
53.600 |
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Reported PAT |
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|
247.500 |
KEY RATIOS
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PARTICULARS
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31.03.2008 |
31.03.2007 |
31.03.2006 |
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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 |
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Debtors |
5.21 |
7.92 |
8.81 |
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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 |
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Adjusted Net
Profit Margin(%) |
20.97 |
13.40 |
8.96 |
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Return On Capital
Employed(%) |
69.89 |
108.88 |
71.77 |
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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
The Company had ventured into
During the year 2005, Company commissioned two large size ethanol plants in
Pantaleon Group,
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
The Company has entered into a Joint Venture with
The Company has also incorporated Praj Far East Company Limited,
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
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
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:
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
EUROPE:
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
Through BioCnergy, the Company is making firm in-roads into Europe and
neighbouring regions like
They made an entry into
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
SOUTH,
This region offers a dual advantage. Being closer to
Their key references in
BEER INDUSTRY REVIEW:
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
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
They expect BioCnergy to act as the beachhead for future businesses in
PRAJJARAGUA BIOENERGIA S.A.:
The JV partner, Jaragua Equipments, is part of the US$ 150 min Grupo Garcia of
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
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
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 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.49.95 |
|
|
1 |
Rs.79.56 |
|
Euro |
1 |
Rs.63.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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 |
|