MIRA
INFORM REPORT
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Report Date : |
10.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
INDOTAN CHEMICALS LIMITED |
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Registered Office : |
34-B, Lenin Sarani, Kolkata-700013, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.07.1988 |
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Com. Reg. No.: |
21-44751 |
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CIN No.: [Company
Identification No.] |
U51109WB1988PLC044751 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALI01156B |
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PAN No.: [Permanent
Account No.] |
AAAc15334G |
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Legal Form : |
A Closely held public limited liability company |
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Line of Business : |
Dealer, Exporter and
Importer of BCS, Chromic Acid Flakes, Potassium Dichromatie, Sodium,
Chromate, SS Yellow, Lime Stone Powder, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 56000 |
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Status : |
Moderate |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having moderate track. Profit margin is under pressure. Payments
are usually correct and as per commitments. The company can be considered for
small to mediocre business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
34-B, Lenin Sarani, Kolkata-700013, West Bengal, India |
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Tel. No.: |
91-33-23293630/
6922 |
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Fax No.: |
91-33-23291326/
22296595 |
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E-Mail : |
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Area : |
1600 sq.
ft.(Leased) |
DIRECTORS
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Name : |
Mr. Ramesh Kumar Juneja |
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Designation : |
Director |
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Address : |
13, Raja Santosh Road, Kolkata-700027, West Bengal, India |
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Date of Birth/Age : |
15.01.1955 |
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Qualification : |
B. Sc. |
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Experience : |
10 years |
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Name : |
Mrs. Ankit Juneja |
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Designation : |
Director |
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Address : |
13, Raja Santosh Road, Kolkata-700027, West Bengal, India |
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Date of Birth/Age : |
23.08.1986 |
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Date of Appointment : |
10.04.2007 |
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Name : |
Mr. Thakurdas
Juneja |
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Designation : |
Director |
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Address : |
35/1, J L Nehru Road,
Kolkata – 700 017, West Bengal, India |
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Date of Birth/Age : |
10.08.1931 |
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Qualification : |
B. Sc. |
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Experience : |
15 years |
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Name : |
Mr. Naresh K
Juneja |
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Designation : |
Director |
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Address : |
35/1, J L Nehru Road,
Kolkata – 700 017, West Bengal, India |
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Date of Birth/Age : |
13.05.1959 |
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Qualification : |
B. Sc. |
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Experience : |
10 years |
SHAREHOLDING PATTERN
Equity Share Breakup (Percentage of Total Equity)
As on 29.09.2007
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Category |
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Percentage |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Dealer, Exporter
and Importer of BCS, Chromic Acid Flakes, Potassium Dichromatie, Sodium, Chromate,
SS Yellow, Lime Stone Powder, etc. |
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Products : |
§
BCS §
Chromic Acid
Flakes §
Potassium
Dichromatie §
Sodium §
Chromate §
SS Yellow §
Lime Stone
Powder |
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Imports : |
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Countries : |
China, Korea |
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Terms : |
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Selling : |
L/C and Credit
basis |
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Purchasing : |
L/C and Credit
basis |
GENERAL
INFORMATION
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Customers : |
§
Wholesalers §
Others |
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No. of Employees : |
About 40 |
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Bankers : |
§
South Indian
Bank Limited 38, Ganesh Chandra Avenue,
Kolkata – 700 013, West Bengal, India §
Federal Bank
Limited 38, Ganesh Chandra
Avenue, Kolkata – 700 013, West Bengal, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K Sarbadhikary and Company Chartered Accountant |
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Address : |
157C, Lenin Sarani, Deluxe Centre, Suite-302A, Kolkata-700013, West
Bengal, India |
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Tel. No.: |
91-33-2233005 |
CAPITAL STRUCTURE
As on 29.09.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs. 100/- each |
Rs. 20.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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101610 |
Equity Shares |
Rs. 100/-
each |
Rs. 10.161
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 |
10.161 |
10.161 |
10.161 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1.071 |
0.195 |
0.017 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
11.232 |
10.356 |
10.178 |
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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 |
35.187 |
37.316 |
37.815 |
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TOTAL BORROWING |
35.187 |
37.316 |
37.815 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
46.419 |
47.672 |
47.993 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
19.228 |
15.604 |
14.246 |
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Capital work-in-progress |
0.000 |
0.000 |
1.144 |
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INVESTMENT |
0.494 |
0.466 |
0.434 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.002 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
15.606
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25.782 |
29.982 |
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Sundry Debtors |
41.343
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34.877 |
15.164 |
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Cash & Bank Balances |
4.481
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6.422 |
7.024 |
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Other Current Assets |
8.868
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9.955 |
1.354 |
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Loans & Advances |
0.000
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0.000 |
8.739 |
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Total
Current Assets |
70.298
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77.036 |
62.263 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
45.761
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45.907 |
29.300 |
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Provisions |
0.000
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0.000 |
1.276 |
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Total
Current Liabilities |
45.761
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45.907 |
30.576 |
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Net Current Assets |
24.537
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31.129 |
31.687 |
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MISCELLANEOUS EXPENSES |
2.160 |
0.473 |
0.480 |
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TOTAL |
46.419 |
47.672 |
47.993 |
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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 |
0.000 |
0.000 |
49.639 |
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Other Income |
101.964 |
96.640 |
0.000 |
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Total Income |
101.964 |
96.640 |
49.639 |
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Profit/(Loss) Before Tax |
3.099 |
1.385 |
0.272 |
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Provision for Taxation |
0.000 |
0.000 |
0.050 |
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Profit/(Loss) After Tax |
3.099 |
1.385 |
0.222 |
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Expenditures : |
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Other Expenditure |
98.865 |
95.255 |
49.367 |
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Total Expenditure |
98.865 |
95.255 |
49.367 |
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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 |
(%) |
2.95
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1.43 |
0.44 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.95
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1.43 |
0.55 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.36
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1.49 |
0.35 |
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Return on Investment (ROI) (PBT/Networth) |
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0.27
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0.13 |
0.03 |
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Debt Equity Ratio (Total Liability/Networth) |
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7.21
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8.04 |
6.72 |
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Current Ratio (Current Asset/Current Liability) |
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1.54
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1.68 |
2.04 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References:
§
Tata Steel
Limited [formerly : Tata Iron and Steel Company Limited (TISCO)]
§
Sayasree
Chemicals and Fertilizers
§
Keshoram Rayon
AS PER WEBSITE
Profile
Subject is the third unit of the J.C Group came
into existence in 1990.
Subject is a leading manufacturer of different
range of Chrome chemicals in
Eastern India with public share holding. The company has an eminent Board of
Directors and a panel of Profile technologists working consistently on Research
and Development to produce products, which confirm to the exact standards of
the International norms
The manufacturing process
is initiated with the use of Chromite Ore. A natural complex mixture
of chromium and Iron, it is first ground and then roasted at high temperature
in large furnaces with soda ash and in the presence of oxygen. The product is a
roast containing Sodium Chromate. This is extracted and reacted with Sulphuric
Acid to give a commercially pure solution of Sodium Dichromate. Sodium
Dichromate either in solid or liquid form, is widely used in Industries and is
also the starting point for the manufacture of all other chromium chemicals.
Products
Basic Chromium
Sulphate(BCS) , Sodium Dichromate, Potassium
Dichromate, Sodium Sulphate
(Yellow), Sodium Chromate, Chromic Acid.
Producing a variety of technical grade Chromium as per ISI specifications, INDOTAN products are
used in the manufacture of Leather, Paint, Drugs, Plywood, Electro Plating,
Detergents, Dyes and Pigment, Paper, Glass and Ceramic, and Metal treatment. It
is also used as an Oxidizing agent in various processes.
Quality Control
The greatest strength of this Group lies in the close monitoring of the quality of its products, an efficiently managed marketing network and prompt
delivery.
Every batch of incoming chemical is checked in the laboratory by
experts. The manufacturing of Chemicals
too is carried out with the help of the most modern machinery in well-equipped
factories.
Infrastructure
It's manufacturing unit is situated about 40 Km. from the city of
Calcutta, India. It is well connected by road and railways. With a
manufacturing unit that boasts of a plant equipped with the most modern
machinery, it has an installed capacity of 6000 MT of chemicals annually.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.89 |
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UK Pound |
1 |
Rs.78.86 |
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Euro |
1 |
Rs.63.33 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
4 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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39 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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