MIRA
INFORM REPORT
|
Report Date : |
19.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
SAMALPATTI POWER COMPANY PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Sreyasvirat, 1st Floor, No.14, 3rd Cross Road, Raja
Annamalapuram, Chennai-600028, Tamil Nadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.12.2010 |
|
|
|
|
Date of
Incorporation : |
22.12.1995 |
|
|
|
|
Com. Reg. No.: |
18-033944 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1362.400 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U40109TN1995PTC033944 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHES15796E CMBS03470F |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in the generation and sale of the entire power to
the Tamil Nadu Electricity Board ("INEB') under a fifteen year Power
Purchase Agreement |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6100000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to be
usually correct and as per commitments. In view of strong holding. The company can be considered normal for
business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Sreyasvirat, 1st Floor, No.14, 3rd Cross Road,
Raja Annamalapuram, Chennai-600028, Tamil Nadu, India |
|
Tel. No.: |
91-44-24353935 |
|
Fax No.: |
91-44-24353938 |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. M Salamatrai Hingorani |
|
Designation : |
Director |
|
Address : |
601, Ramlaxmi Nivas, plot 527 A, 16th Road, Khar (West),
Mumbai-400052, Maharashtra, India |
|
Date of Birth/Age : |
19.06.1937 |
|
Date of Appointment : |
01.07.1997 |
|
DIN No : |
00021284 |
|
|
|
|
Name : |
Mr. Shapoor Pallonji Mistry |
|
Designation : |
Director |
|
Address : |
Sterling BAY, 103, Walkeshwar Road, Walkeshwar, Mumbai-400006,
Maharashtra, India |
|
Date of Birth/Age : |
06.09.1964 |
|
Date of Appointment : |
04.12.1999 |
|
DIN No : |
00010114 |
|
|
|
|
Name : |
Mr. Naresh Chand Singhal |
|
Designation : |
Chairman |
|
Address : |
D-107, Poornima, 23, Pedder Road, Mumbai-400026, Maharashtra, India |
|
Date of Birth/Age : |
10.08.1936 |
|
Date of Appointment : |
04.12.1999 |
|
DIN No : |
00004916 |
|
|
|
|
Name : |
Mr. Suresh Dhawan |
|
Designation : |
Director |
|
Address : |
1602, Badrinath Towers, Seven Bunglows, Andheri (West), Mumbai-400061,
Maharashtra, India |
|
Date of Birth/Age : |
01.01.1959 |
|
Date of Appointment : |
28.02.2008 |
|
DIN No : |
01175807 |
|
|
|
|
Name : |
Mr. Venkata Rao Kandoji |
|
Designation : |
Managing |
|
Address : |
R-3-2, Kaveri Salai, Kalkshetra Colony, Besant Nagar, Chennai-600090,
Tamil Nadu, India |
|
Date of Birth/Age : |
15.04.1945 |
|
Date of Appointment : |
01.03.2011 |
|
DIN No : |
00102379 |
KEY EXECUTIVES
|
Name : |
Mr. Mukundan Srinivasan |
|
Designation : |
Secretary |
|
Address : |
B 1404 A and B, Florentine Cooperative Housing Society, Hiranandani
Gardens, Powai, Mumbai-400076, Maharashtra, India |
|
Date of Birth/Age : |
29.10.1956 |
|
Date of Appointment : |
08.12.2010 |
|
DIN No : |
00276429 |
|
|
|
|
Name : |
Ms. Swapna Ravi |
|
Designation : |
Secretary |
|
Address : |
Flat No.3, Seaview Apartments, Leithcastle Centre Street, Santhome,
Chennai-600028, Tamil Nadu, India |
|
Date of Birth/Age : |
26.07.1975 |
|
Date of Appointment : |
19.07.2007 |
|
PAN No : |
BFEPS9101N |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Names of Shareholders |
CLASS A |
CLASS B |
|
SPPPPL |
106853026 |
29386968 |
|
Mohan Hingorani Jointly with SPPPPL |
1 |
0 |
|
Mahesh Tahilyani Jointly with SPPPPL |
1 |
0 |
|
F K Bhathena Jointly with SPPPPL |
1 |
0 |
|
Mukundan Srinivasan Jointly with SPPPPL |
1 |
0 |
|
Vasant Sanzgiri Jointly with SPPPPL |
1 |
0 |
|
Shankar Krishnan Subramanian Jointly with SPPPPL |
1 |
0 |
|
|
|
|
|
Total |
106853032 |
29386968 |
AS ON 31.03.2011
|
Category |
Percentage |
|
Bodies corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the generation and sale of the entire power to
the Tamil Nadu Electricity Board ("INEB') under a fifteen year Power
Purchase Agreement |
|
|
|
|
Products : |
Generation of Power |
PRODUCTION STATUS AS ON 31.12.2010
|
Particulars |
Unit |
Actual
Production |
|
Installed Capacity |
MW |
105.66 |
|
|
|
|
|
Generating Capacity |
MU |
925.58 |
|
Energy Generated |
MU |
379.03 |
|
Energy Sold |
MU |
386.01 |
GENERAL INFORMATION
|
Bankers : |
·
State Bank of India, CAG Branch, 3rd
Floor, Sigapi Achi Building, 18/3, Rukmini Lakshmipathi Road, Egmore, Chennai-600008,
Tamil Nadu, India |
Banking Facilities:
|
Secured Loan |
Rs.
In Millions 31.12.2010 |
Rs.
In Millions 31.12.2009 |
Rs.
In Millions 31.12.2008 |
Rs.
In Millions 31.12.2007 |
|
Term Loans from |
|
|
|
|
|
From Banks |
0.000 |
162.237 |
410.325 |
658.874 |
|
From Financial Institutions |
0.000 |
60.217 |
152.967 |
245.717 |
|
Working Capital Facilities from Banks |
|
|
|
0 |
|
Cash Credit Facilities |
157.261 |
369.837 |
499.779 |
349.786 |
|
Total |
157.261 |
592.291 |
1063.071 |
1254.377 |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S r Batliboi and Associates Chartered Accountant |
|
Address : |
TPL House, Second Floor, 3, Cenotaph Road, Chennai-600018, Tamil Nadu,
India |
|
Tel. No.: |
91-44-66328400 |
|
Fax No.: |
91-44-2431145 |
|
|
|
|
Holding Company : |
·
Shapoorji Pallonji Power Projects Private Limited CIN No.:
U40103MH2010PTC202791 ·
Covanta Energy India (Samalpatti) Limited |
|
|
|
|
Ultimate Holding Company : |
·
Covanta Holding Company |
|
|
|
|
Fellow Subsidiaries : |
·
Covanta Samalpatti Operating Private Limited |
CAPITAL STRUCTURE
AS ON 31.12.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
115000000 |
A Class Equity Shares |
Rs.10/- each |
Rs. 1150.000 Millions |
|
30000000 |
B Class Equity Shares |
Rs. 10/- each |
Rs. 300.000 Millions |
|
5000000 |
Unclassified Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
|
|
Total |
|
Rs. 1500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
106853032 |
A Class Equity Shares |
Rs.10/- each |
Rs. 1068.530
Millions |
|
29386968 |
B Class Equity Shares |
Rs. 10/-
each |
Rs. 293.870
Millions |
|
|
Total |
|
Rs. 1362.400 Millions |
Notes:
B Class Equity
Shares do not carry voting rights
Of the above
52357032 (Previous year 52,357,032) Class A equity shares of Rs I0 each and
14,400,568 (Previous year 14,400,568) Class B equity shares of Rs 10 each are
held by Covanta Energy India (Samalpatti)
Limited and
14,986,400 (Previous year 14 986 400) Class B equity shares of Rs I0 each are
held by Goa Holdings Limited both of which are the subsidiaries of Covanta
Holding Corporation. Ute Ultimate holding Company as on 3lst December 2010
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
|
1] Share Capital |
1362.400 |
1362.400 |
1362.400 |
1362.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
186.531 |
224.509 |
122.371 |
277.711 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1548.931 |
1586.909 |
1484.771 |
1640.111 |
|
|
LOAN FUNDS |
|
|
|
|
|
|
1] Secured Loans |
157.261 |
592.291 |
1063.071 |
1254.377 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
157.261 |
592.291 |
1063.071 |
1254.377 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
TOTAL |
1706.192 |
2179.200 |
2547.842 |
2894.488 |
|
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1059.554 |
1346.911 |
1633.738 |
1921.738 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
209.976 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
|
Inventories |
346.997
|
310.502 |
252.386 |
323.306 |
|
|
Sundry Debtors |
244.366
|
64.076 |
97.714 |
986.215 |
|
|
Cash & Bank Balances |
96.016
|
445.995 |
843.665 |
637.999 |
|
|
Other Current Assets |
159.298
|
139.063 |
203.548 |
263.867 |
|
|
Loans & Advances |
9.662
|
21.199 |
63.942 |
24.326 |
|
Total
Current Assets |
856.339
|
980.835 |
1461.255 |
2235.713 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
|
Sundry Creditors |
170.862
|
147.009 |
214.030 |
242.758 |
|
|
Other Current Liabilities |
33.489
|
36.180 |
93.992 |
42.805 |
|
|
Provisions |
5.350
|
175.333 |
239.129 |
977.400 |
|
Total
Current Liabilities |
209.701
|
358.522 |
547.151 |
1262.963 |
|
|
Net Current Assets |
646.638
|
622.313 |
914.104 |
972.750 |
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
TOTAL |
1706.192 |
2179.200 |
2547.842 |
2894.488 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
Sale of Power |
3581.024 |
3852.748 |
5645.110 |
3507.760 |
|
|
|
Other Income |
25.050 |
39.559 |
62.428 |
45.151 |
|
|
|
TOTAL (A) |
3606.074 |
3892.307 |
5707.538 |
3552.911 |
|
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
|
Cost of Fuel Consumed |
2510.375 |
2598.231 |
|
|
|
|
|
Personal Expenses |
7.197 |
6.491 |
|
|
|
|
|
Operation, Maintenance and Administration Expenses |
386.721 |
397.822 |
|
|
|
|
|
TOTAL (B) |
2904.293 |
3002.544 |
5522.881 |
3216.878 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)
(C) |
701.781 |
889.763 |
Including Financial Expenses |
Including Financial Expenses |
|
|
|
|
|
|
And |
And |
|
|
Less |
FINANCIAL
EXPENSES (D) |
47.938 |
93.464 |
Depreciation |
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
653.843 |
796.299 |
|
|
|
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION
(F) |
288.352 |
287.594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
365.491 |
508.705 |
184.657 |
336.033 |
|
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
69.847 |
71.839 |
21.210 |
39.311 |
|
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
295.644 |
436.866 |
163.447 |
296.722 |
|
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
111.068 |
52.616 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
|
Transfer to General Reserve |
29.564 |
43.687 |
NA |
NA |
|
|
|
Dividend |
286.104 |
136.240 |
NA |
NA |
|
|
|
Tax on Dividend |
47.518 |
23.154 |
NA |
NA |
|
|
|
Proposed Final Dividend |
0.000 |
149.864 |
NA |
NA |
|
|
|
Dividend Distribution Tax on Final
Dividend |
0.000 |
25.469 |
NA |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
43.526 |
111.068 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.17 |
3.21 |
1.20 |
2.18 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2010 |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
PAT / Total Income |
(%) |
8.20
|
11.22 |
2.86 |
8.35 |
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.21
|
13.20 |
3.27 |
9.58 |
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.08
|
21.85 |
5.97 |
8.08 |
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.32 |
0.12 |
0.20 |
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.24
|
0.60 |
1.08 |
1.53 |
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.08
|
2.74 |
2.67 |
1.77 |
LOCAL AGENCY FURTHER INFORMATION
BACKGROUND
Subject was
incorporated in India in December 1995. The Company owns a 105.66MW diesel
power plant near Samalpatti, Krishnagiri District, Tamil Nadu and is engaged in
the generation and sale of the entire power to the Tamil Nadu Electricity Board
("INEB') under a fifteen year Power Purchase Agreement('PPA').
The Company
entered into a Power Purchase Agreement ('PPA') dated May 22, 1998 with TNEB
for the sale of
power generated. The
plant commenced commercial operations on March 1, 2001 and all project
expenditure has
been capitalised
on this date. In this regard, the Company has compiled the completed project
cost which has been submitted to TNEB and Central Electricity Authority ('CEA')
for approval as per the provisions of the PPA.
The sale price of
energy to TNEB, the sole customer of the Company, is determined as per the
tariff structure provided for in the PPA. The Company is guaranteed of the
payment of fixed costs at a "Plant Load Factor" ('PLF') availability
level of 68.4932%.
The operations of
the Company are governed primarily by the PPA, related agreements, Electricity
Tariff Notifications of the Government of India, the provisions of the
Electricity Act, 2003 and rules made there under.
Under the terms of
the PPA, TNEB is required to, inter alia, establish (a) a letter of credit
equivalent to two month's billing in a tariff year (b) an escrow arrangement
for the hypothecation of its receivables, and (c) a guarantee from the
Government of Tamil Nadu as regards the payment obligations of TNEB. While the
guarantee from Government of Tamil Nadu has been obtained, the
collateralization of letter of credit and the escrow mechanism are yet to be
operationalised by TNEB.
The non operation
of the escrow account and non establishment of said letter of credit by the
TNEB are each defined as a potential event of default under the financing
documents between the Company and the lenders. The Company is currently under
negotiations with TNEB for the operation of the escrow account and/or to obtain
the necessary waivers/extensions from the lenders. However, having regard to
the facts that dues to lenders have been substantially repaid, and that no
notices in this regard or for the termination of loan facility has been
received from the lenders in the past and to date, no adjustments in the
financial statements is considered necessary.
PLANT OPERATIONS:
It is with
satisfaction that the Directors inform you that, during the year 2010, the
plant has operated well on all parameters. During the current year, the
operations of the plant have been very smooth. The performance parameters such
as fuel consumption and heat rate were well within the norms. During the year,
the plant has operated safely without any lost time accident or environment
exceedence.
The plant was
operated in accordance with the dispatch instructions of TNEB upon which the
actual PLF is dependent. The cumulative PLF for the period is 41.70%. The
Directors are glad to inform you that the Company has repaid the outstanding
Term Loan in full by September 2010 and now the Company has become totally
long-term debt free.
FINANCIAL HIGHLIGHTS
As per the Power Purchase
Agreement (PPA), TNEB is committed to make payment of full Tariff Invoice
within five business days of billing. Though prior to March, 2005 TNEB had been
making ad hoc payments, since April 2005 TNEB has been paying the monthly
tariff invoices within five business days after making certain unexplained
deductions on all the payments. The amount due to the Company from TNEB as at
31st Dec 2010, stands at Rs. 758.6 Million. In addition, in terms of PPA, TNEB
is also liable to pay interest on overdue outstanding amounts.
OUTLOOK FOR 2011
It is anticipated
that the plant will operate at a reasonably good PLF during the year ahead.
FORM 8
|
Corporate
identity number of the company |
U40109TN1995PTC033944 |
|
Name of the
company |
SAMALPATTI POWER COMPANY
PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
Sreyasvirat, 1st Floor, No.14, 3rd Cross Road, Raja Annamalapuram, Chennai-600028, Tamil Nadu, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
Movable property
(not being pledge) |
|
Particular of
charge holder |
State Bank of India, CAG Branch, 3rd Floor, Sigapi Achi Building, 18/3, Rukmini Lakshmipathi Road, Egmore, Chennai-600008, Tamil Nadu, India |
|
Nature of
instrument creating charge |
Release of second
charge on Fixed Assets of the Company. |
|
Date of
instrument Creating the charge |
30.03.2011 |
|
Amount secured by
the charge |
Rs. 42.264
millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Extent and operation of the charge Release of second
charge on Fixed Assets of the Company. |
|
Short particulars
of the property charged (Including location of the property) |
Second charge on
the Current Assets of the company |
|
Charge
identification number of the charge to be modified |
10064027 |
|
Date of
instrument modifying the charge |
27.07.2009 |
|
Particulars of
the present modification |
The second charge
on fixed assets of the Company has been released. |
FIXED ASSETS
·
Freehold Land
·
Plant and Machinery
·
Office Equipments
·
Furniture and Fittings
·
Motor Vehicles
·
Computer Software
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. 45.61 |
|
|
1 |
Rs. 75.32 |
|
Euro |
1 |
Rs. 65.68 |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.