MIRA INFORM
REPORT
|
Report
Date : |
16.09.2008 |
IDENTIFICATION DETAILS
|
Name : |
KHS MACHINERY PRIVATE LIMITED |
|
|
|
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Registered
Office : |
53, Madhuban, Near Madalpur Underbridge, Ellisbridge P.O.,
Ahmedabad 380006, Gujarat. |
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Country
: |
India |
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|
|
|
Financials
(as on) : |
31.03.2008 |
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|
|
Com.
Reg. No.: |
04-32397 |
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|
Date
of Incorporation : |
26.05.1997 |
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|
CIN
No.: |
U29199GJ1997PTC032397 |
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|
|
Com.
Reg. No.: |
04-32397 |
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|
|
TAN
No.: (Tax
Deduction & Collection Account No.) |
AHMK00378A |
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|
|
|
Legal
Form : |
Private Limited Liability Company |
|
|
|
|
Line
of Business : |
Manufacturers
of Machines used to manufacturer seft drink bottles. |
RATING & COMMENTS
|
MIRAs
Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
600000 |
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|
|
|
Status
: |
Satisfactory
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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. |
INFORMATION PARTED BY
|
Name : |
Mr.
Jignesh Patel |
|
Designation
: |
Assistance
Accountant |
|
Date : |
12.08.2008 |
LOCATIONS
|
Registered/Administrative
Office : |
53,
Madhuban, Near Madalpur Underbridge, Ellisbridge P.O., Ahmedabad 380006,
Gujarat, India |
|
Tel. No.: |
91-79-26442729/26440331/26443236 |
|
Fax
No.: |
91-79-26421324 |
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E-Mail
: |
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|
Website
: |
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|
Location : |
Owned |
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|
|
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Factory
1 : |
Plot No.
14/16, GIDC, Phase I, Vatva, Ahmedabad 382445, Gujarat, India |
|
Tel.
No.: |
91-79-5832023/24/25 |
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Fax
No.: |
91-79-5832026 |
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|
|
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Factory
1 : |
15, Madhuban Ellisbridge, Near Madalpur Underbridge, Ahmedabad
380006, Gujarat |
|
Tel.
No.: |
91-79-25832866 |
DIRECTORS
|
Name : |
Mr. N.
Mahendra Patel |
|
Designation
: |
Managing
Director |
|
Address
: |
15,
Kairavi Bunglows, Near Sarathi Hotel, Bodekdev, Ahmedabad 380054, Gujarat, India |
|
Date
of Birth/Age : |
17.01.1949 |
|
Qualification
: |
M.Sc
[Indl. Engg. And Admn.] from U.K. |
|
Experience
: |
27 years |
|
Date
of Appointment : |
26.05.1997 |
|
|
|
|
Name : |
Mr. Rahul
Dr. Frank |
|
Designation
: |
Director |
|
Address
: |
Auf Der
Bach 13, 64665 Alsbach, Bergstrabe, Germany |
|
Date
of Birth/Age : |
21.11.1954 |
|
Date
of Appointment : |
26.05.1997 |
|
|
|
|
Name : |
Mr. Till
Volkeer |
|
Designation
: |
Director |
|
Address
: |
Eichen
Dorfestr 17, 65719 Hofheim. Germany |
|
Date of
Birth/Age : |
02.12.1940 |
|
Date
of Appointment : |
24.10.2001 |
|
|
|
|
Name : |
Mr. Gras
Rainer |
|
Designation
: |
Director |
|
Address
: |
AM, Sportplatz 55545, Bad Kruznach |
|
Date
of Appointment : |
24.10.2001 |
|
|
|
|
Name : |
Mr.
Vogtland Heinz |
|
Designation
: |
Director |
|
Address
: |
An
Derkamnnsstruck 23, 58239, Schwerle, Germany |
|
Date
of Appointment : |
01.05.2001 |
|
Name : |
Mr. R.
Yatindra Sharma |
|
Designation
: |
Director |
|
Address
: |
23, Yogeshwar
Bunglows, Opposite Kalindi Bunglows, Near Sola Overbridge, Ahmedabad
380054, Gujarat, India |
|
Date
of Birth/Age : |
14.03.1955 |
|
Date
of Appointment : |
01.05.2001 |
|
|
|
|
Name : |
Mr. Petri Ulrich |
|
Designation
: |
Director |
|
Address
: |
Crispinstrabe 5144229, Dortmund |
|
Date
of Birth/Age : |
29.12.1938 |
|
Date
of Appointment : |
26.05.1997 |
|
|
|
|
Name : |
Mr. Michl Manfred |
|
Designation
: |
Director |
|
Address
: |
Zum Frauenkope 21, Altebamberg |
|
Date
of Birth/Age : |
22.04.1947 |
|
Date
of Appointment : |
26.05.1997 |
|
|
|
|
Name : |
Mr. S Bhuller Gurcharan |
|
Designation
: |
Director |
|
Address
: |
KBM Consulting Gmbh, Wetterau Str. 7 C- 63505 |
|
Date
of Birth/Age : |
2ND December, 1940 |
|
Date
of Appointment : |
26th May, 1997 |
|
|
|
|
Name : |
Mr. Maternus Gemmel |
|
Designation
: |
Director |
|
Address
: |
Zur Rosenhecke, 13 A, Bad Kreuznach 55545 |
|
Date
of Birth/Age : |
25.11.1942 |
|
Date
of Appointment : |
17.09.2004 |
|
|
|
|
Name : |
Mr. Valentin Reisgen |
|
Designation
: |
Director |
|
Address
: |
Durestrabe S 41466, Neuss |
|
Date
of Birth/Age : |
25.11.1956 |
|
Date
of Appointment : |
17.09.2004 |
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|
|
|
Name : |
Mr. Till Volker |
|
Designation
: |
Director |
|
Address
: |
Eichen Dorfestr
17, 65719 Hofheim. Germany |
|
Date
of Appointment : |
18.07.2005 |
|
|
|
|
Name : |
Mr. UDO Wilhelm Porsfeld |
|
Designation
: |
Director |
|
Date
of Appointment : |
14.11.2005 |
|
|
|
|
Name : |
Mr. Johann Grabenweger |
|
Designation
: |
Director |
|
Address
: |
Welserstrasse 28, Ludwigshafen AM 67063 |
|
Date
of Birth/Age : |
02.01.1963 |
|
Date
of Appointment : |
09.01.2006 |
KEY EXECUTIVES
|
Name : |
Mr. N
Raval Nikunj |
|
Designation
: |
Company
Secretary |
|
Tel.
No.: |
91-79-27456876/
30186542 |
|
Mobile
No.: |
91-985383010 |
|
E-Mail |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mr.
Mahendra N. Patel |
27490 |
|
Mr.
Nayana M Patel |
10 |
|
Mr.
Bhuller Gurcharan S |
27500 |
|
Mr. Kohli
Kevalkishan K |
27500 |
|
Mr.
Mamata Machinery |
13750 |
|
M/s. KHS
Maschinen UND- Anlagenbau AG |
890000 |
|
Mr.
Sharma Yatindra R |
13750 |
|
Total |
1000000 |
AS ON
04.08.2008
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign
holdings [Foreign institutional investors, Foreign Companies, Foreign
Financial Institutions, Non-resident Indian or Overseas corporate bodies or
others] |
|
94.50 |
|
Bodies corporate |
|
1.38 |
|
Directors or relatives of directors |
|
4.12 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers
and Sellers of Labeller, Filler and Paramix. |
|
|
|
|
Products
: |
Labeler 8422 Filifr 8422 Paramix - 8422 |
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|
|
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Export:
|
|
|
Product : |
Machinery |
|
Country : |
Germany, Brazil, China, Nepal, Bhutan, Sri Lanka and
Bangladesh |
|
|
|
|
Imports
from : |
|
|
Product : |
Raw Materials |
|
Country : |
Canada, Germany, U.K., U.S.A and Italy. |
|
|
|
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Terms
: |
|
|
Selling : |
Credit and Advance |
|
|
|
|
Purchasing : |
L/C [60/90 days] terms and Cash |
GENERAL INFORMATION
|
Suppliers
: |
ท
Schelemkas
Enterprises Inc., USA ท
KHS
Maschinen Und Anlagenbau AG, Germany ท
Klockner
Hansel, Germany |
|
|
|
|
Customers
: |
Corporate
|
|
|
|
|
No. of
Employees : |
130 |
|
|
|
|
Bankers
: |
v
State
Bank of India, Industrial Estate Branch, Vatva, Ahmedabad 382445, Gujarat,
India v
Standard
Chartered Grindlays Bank, C. G. Road, Ahmedabad 380006, Gujarat, India v
HDFC
Bank Limited, Navrangpura Branch, Ahmedabad 380009, Gujarat, India v
ICICI
Bank, JMC Branch |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors
: |
Dinesh R.
Shah and Company Chartered
Accountants |
|
Address: |
51,
Madhuban, Near Madalpur Under Bridge, Ellisbridge, Ahmedabad 380006,
Gujarat, India |
|
|
|
|
Auditors
: |
Prince Waterhouse Chartered Account |
|
Address: |
252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai
400028, Maharashtra, India |
|
|
|
|
Associates/Subsidiaries
: |
ท Mamata Brampton Engineering
Private Limited ท Mamata Solar Private Limited ท Mamata Ariwings Private Limited ท KHS Machinery Private Limited ท Klockner Desma Machinery Private
Limited ท Ferromatic Milaeron India Limited ท SourcePro Infotech Private Limited ท Mamata Marketing Services ท Win Engineering Private Limited ท Darling Muesco India Private
Limited ท Saturn Travels ท Mukti Trust ท KHS Machinen Aniogenbou ท Mamta Machinery Private Limited ท KHS Industrial Maquians ท KHS Asia Pte. Limited (Singapore) ท KHS Industries de Maquinas Ltca.,
Sao Paulo (Brasil) ท KHS Machines and Equipment Company
Limited Quinhungdao (China) ท KHS Metec GmbH Niederzissen
(Germany) ท KHS USA Inc., Waukesha (USA) |
|
|
|
|
Holding
Company : |
KHS AG |
|
|
|
|
Ultimate
Holding Company: |
Salzgitter
Mannesmann Gmbh, Germany |
|
Others
: |
ท
KBM
Consulting GmbH ท
Sourcepro
Infotech Private Limited ท
Nirav
Industries |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
5000000 |
Equity
Shares |
Rs.10/- each |
Rs. 50.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares
|
Rs.10/- each |
Rs. 10.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
10.000 |
10.000 |
10.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
0.274 |
0.176 |
143.084 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
10.274 |
10.176 |
153.084 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
11.107 |
17.094 |
0.290 |
|
|
2]
Unsecured Loans |
130.492 |
170.688 |
103.876 |
|
TOTAL
BORROWING
|
141.599 |
187.782 |
104.166 |
|
|
DEFERRED
TAX LIABILITIES |
10.987 |
6.930 |
5.173 |
|
|
|
|
|
|
|
TOTAL
|
437.428 |
381.047 |
262.423 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
440.362 |
336.552 |
67.990 |
|
Capital work-in-progress
|
4.000 |
26.911 |
56.469 |
|
|
|
444.362 |
363.463 |
124.459 |
|
INVESTMENT
|
0.000 |
0.000 |
0.000 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
431.285
|
327.604 |
215.473
|
|
|
Sundry Debtors
|
156.831
|
56.007 |
43.900
|
|
|
Cash & Bank Balances
|
123.881
|
27.881 |
73.007
|
|
|
Other Current Assets
|
0.136
|
0.110 |
0.000
|
|
|
Loans & Advances
|
43.016
|
65.802 |
14.328
|
Total Current Assets
|
755.149
|
477.404
|
346.708 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
713.075
|
425.204 |
180.452
|
|
|
Provisions
|
49.008
|
34.616 |
28.292
|
Total Current Liabilities
|
762.083
|
459.82
|
208.744 |
|
Net
Current Assets
|
(6.934)
|
17.584
|
137.964
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
437.428 |
381.047 |
262.423 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Sales Turnover [including other income]
|
1698.432 |
707.763 |
319.209 |
|
|
|
|
|
|
|
Profit/(Loss) Before Tax
|
209.386 |
79.456 |
36.451 |
|
Provision for Taxation
|
105.031 |
40.354 |
8.076 |
|
Profit/(Loss) After Tax
|
104.355 |
39.102 |
28.375 |
|
|
|
|
|
|
|
Export
Value
|
343.978 |
195.942 |
85.049 |
|
|
|
|
|
|
|
Import
Value
|
|
|
|
|
|
|
Raw Materials |
3399.249 |
147.325 |
22.257 |
|
|
Components |
427.251 |
13.242 |
11.829 |
|
|
Capital Goods |
1.038 |
10.035 |
0.000 |
|
|
|
|
|
|
Total
Expenditure
|
1489.046 |
628.307 |
282.758 |
|
KEY
RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
PAT / Total Income
|
(%)
|
06.14 |
05.52
|
08.88 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
12.32 |
11.22
|
02.53 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
17.45 |
09.44
|
01.71 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
20.38 |
7.80
|
05.27 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
87.95 |
63.64
|
2.04 |
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
0.99 |
1.03
|
1.66 |
LOCAL AGENCY FURTHER
INFORMATION
Trade Reference
ท Cocacola India
Year in Retrospect:
Soft drink market grew
with significant market constraints major reason for down side in the growth was
controversy of pesticide content in soft drink severe Government controls have
been imposed an cala majors in terms of stricter quality standards. Due to this
very reason there were no major investments in this segment for the year in
consideration. Despite above market growth constraints the company had
broadened its market in local beer segment and export to Germany, China, Sri
Lanka and Bangladesh. Company had made sales of Rs. 380 Millions with profit of
Rs. 30.000 Millions
Future business plans are
giving desired results. In future the company will have a strong local presence
in soft drinks, Juices, Beer and Water market. Export development efforts will
give significantly large share of business in future. Business outlook for near
future looks promising with good growth.
Technology Absorption
The company had entered
into an international technical Know how License Agreement with M/s. KHS
Maschinen Und Anlagenbau AG, Germany for the manufacture and marketing of
complete Bottling Lines in India. The company is also had also entered into and
international technical Know how license agreement with M/s. KHS Maschinen
GmbH, Germany for manufacture and marketing of Labeling Machines in India
Fixed Assets:
v
Plant and Machinery
v
Computer
v
Furniture and Fixture
v
Vehicles
v
Office Equipment
The
company has technical and financial collaboration with :
ุ
KHS
Machinen Und Anblagenbau AG, Germany
-
For
manufacturing and marketing of complete bottling lines in India
ุ
KHS Anker
Maschinebau GmbH, Germany
-
For
manufacturing and marketing of Labelling Machines in India
Indian
Market showed steep slow down due to adverse fiscal position as well as the
September 11, attach on WTC, etc.
It utilises
about 65% imported raw materials in its manufacturing process and 59% imported
spares for trading.
Sales were
reduced mainly due to the continuous riots in the city during the period under
report.
It foresee
difference in market trend. Good
response in Labelling Applications, Filling Solutions, Spirals and Filtering
appliances, for pharmaceuticals, Beer and Chemical Industry.
The group
has collaboration with :
ุ
Schelenkas
Enterprises Inc., USA
ุ
Cincinnati
Milacron Inc., USA
ุ
Pure
Pack Inc., USA
ุ
Hibar
Systems, Canada
ุ
Alsan
Technologies, Canada
ุ
Klockner
Bartelt, Germany
ุ
KHB
Investment Holdings S.A., Luxumberg
The group
company took part in exhibition for their machines in K 2001 held in Germany
and got tremendous response.
Form 8 Particular for creation or modification
of charges
|
Name of the Company |
KHS MACHINERY PRIVATE LIMITED |
|
Presented By |
Mr. Mahendra N Patel |
|
|
|
|
1) Date and description of instrument creating the change |
General Agreement for the grant of small industries advance
and Hypothecation of Movables, Book Debts and other assets dated 18.12.2001 |
|
2) Amount secured by the charge/amount owing on the
securities of charge |
Rs. 1.000 Millions
|
|
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 of all present and future goods, book
debts movable and other assets of the
Borrower including document of the title to goods and other assets such as outstanding
moneys, contract, engagement, Securities investment and rights and the
present machinery and all future machinery. Borrower or of the bank or any 3rd
party whether in India or elsewhere throughout the world Facility Guarantee Rs. 1.000 Millions |
|
4) Gist of the terms and conditions and extent and
operation of the charge. |
Hypothecation by way of first charge of all present and
future goods, Book debts movable and other assets and machinery Margin 10% Tenure 12 Months |
|
5) Name and Address and description of the person entitled
to the charge. |
State Bank of India, Vatva Industries Branch, Vatava
Ahmedabad |
|
6) Date and brief
description of instrument modifying the charge |
NA |
|
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. |
NA |
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 Intl 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 companys 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.45.77 |
|
UK Pound |
1 |
Rs.80.67 |
|
Euro |
1 |
Rs.64.20 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This
score serves as a reference to assess SCs 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
|
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 |