MIRA
INFORM REPORT
|
Report Date : |
02.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
CORRTECH ENERGY LIMITED (w.e.f. 14.05.2009) |
|
|
|
|
Formerly Known
As : |
MJB INDIA GAS TURBINE SERVICES LIMITED (w.e.f. 2002) IEC INTERNATIONAL LIMITED |
|
|
|
|
Registered
Office : |
22, Dhara Centre, Near Vijay Char Rasta, Navrangpura, Ahmedabad – 380
009, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
02.05.2000 |
|
|
|
|
Com. Reg. No.: |
04-37925 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.21.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U52330GJ2000PLC037925 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMI00225B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACI8838F |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturing of gas turbine spares, repairs and maintenance of GE Gas
Turbines. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1200000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having good track. General financial
position is satisfactory. Trade relations are reported as fair. Business is
active. Payments are reported to be usually correct and as per commitments. 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
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 : |
22, Dhara Centre, Near Vijay Char Rasta, Navrangpura, Ahmedabad – 380
009, |
|
Tel. No.: |
91-79-26563443 / 26420119 |
|
Fax No.: |
91-79-26431615 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Shed No. 7, Survey No. 407, SP-3, New Ahmedabad Industrial Estate,
Sarkhej Bavla Highway, Changodar, Ahmedabad - 382 213, Gujarat, India |
|
Tel. No.: |
91-2717-304100 |
|
Fax No.: |
91-2717-304150 |
|
|
|
|
Factory 2 : |
GIDC Estate, Naroda, Ahmedabad, |
|
|
|
|
Repair Shop : |
Plot No. 51, Mahagujarat Industrial Estate, Opposite Nova
Petrochemicals, Sarkhej Bavla Highway, Changodar, Ahmedabad - 382 213,
Gujarat, India |
|
Tel. No.: |
91-2717-304100 |
|
Fax No.: |
91-2717-304150 |
DIRECTORS
As on 30.09.2011
|
Name : |
Mr. Sandeep Indrasen Mittal |
|
Designation : |
Managing Director |
|
Address : |
24, New Suryanarayan Society, |
|
Date of Birth/Age : |
02.04.1968 |
|
Date of Appointment : |
01.04.2008 |
|
DIN No.: |
01643818 |
|
|
|
|
Name : |
Mrs. Kavita Amitbhai Mittal |
|
Designation : |
Director |
|
Address : |
38, Akashneem, Opposite Nehru Foundation, Bodakdev, Ahmedabad – 380
054, |
|
Date of Appointment : |
02.05.2000 |
|
DIN No.: |
01643876 |
|
|
|
|
Name : |
Mr. Amit Indrasen Mittal |
|
Designation : |
Director |
|
Address : |
38, Akashneem, Opposite Nehru Foundation, Bodakdev, Ahmedabad – 380
054, |
|
Date of Appointment : |
02.05.2000 |
|
DIN No.: |
01644010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
Corrtech International Private Limited, |
|
2099994 |
|
Amit Mittal (Nominee of Corrtech International Private Limited, |
|
1 |
|
Sandeep Mittal (Nominee of Corrtech International Private Limited, |
|
1 |
|
Harini Mittal (Nominee of Corrtech International Private Limited, |
|
1 |
|
Kavita Mittal (Nominee of Corrtech International Private Limited, |
|
1 |
|
Shailesh Javia (Nominee of Corrtech International Private Limited, |
|
1 |
|
Yogesh Trivedi (Nominee of Corrtech International Private Limited, |
|
1 |
|
Total |
|
2100000 |
As on 30.09.2011
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
100.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of gas turbine spares, repairs and maintenance of GE Gas
Turbines. |
PRODUCTION STATUS AS ON 31.03.2011
|
Capacity |
Unit |
31.03.2011 |
|
Licensed Capacity |
N.A. |
N.A. |
|
Installed Capacity |
Nos. |
26 sets of Compressor Blades |
|
Manufactured |
Nos. |
Equivalent 22
sets of Compressor Blades |
GENERAL INFORMATION
|
Customers : |
Public Sector · Brahmaputra Valley Fertilizer Corporation Limited, Namrup ·
Chennai Petroleum Corporation Limited, Chennai ·
·
Gujarat Industries Power Company Limited, ·
Gujarat State Electricity Corporation Limited, ·
·
Indian Farmers Fertilizers Co-Operative Limited,
Aonla ·
Indraprastha Power Generation Company Limited, ·
Indian Oil Corporation Limited, Private Sector ·
Chambal Fertilisers and Chemicals Limited, ·
Essar Power Limited, Hazira ·
Essar Steel Limited, Hazira ·
HPL Cogeneration Limited, Haldia ·
Kribhco Shyam Fertilizers Limited, Shahjahanpur ·
Larsen and Toubro Limited (E and C Business Group
– EPC Power) ·
Peena Electricity Limited, Chennai ·
Reliance Infrastructure Limited, OVERSEAS ·
Euroturbine SPC, ·
Global Tech Services, ·
MJB International, UAE ·
TurboCare ( ·
Turbine Services, |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
Axis Bank Limited Trishul, 3rd Floor, Opposite Samartheshwar |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
Secured Term Loan
from Banks and Buyers' Credit for Capital Goods is secured against the first
charge on the entire existing unencumbered movable fixed assets of the
company and proposed to be acquired from the fresh term loans sanctioned
during the year. The charge is also extended to the entire current assets of
the Company for these facilities. Working Capital
Loans and Buyers' Credit for Raw Materials from the banks are secured against
first charge on the entire current assets of the company, both present and
future. The charge is also extended to entire existing unencumbered movable
fixed assets of the company and proposed to be acquired from fresh term loan
sanctioned during the year. Both of the
above facilities are also secured by way provision of collateral in the form
of mortgage of plot of land held by the Holding Company, Corrtech
International Private Limited. The above
facilities are also secured by way of provision of corporate guarantee from
the Holding Company Corrtech International Private Limited and personal
guarantee from the promoter directors in respect of the above facilities. Secured Term
Loan from Financials Institution is secured against charge on specific fixed
assets of the company created/to be created against out of the said loan and
cash margin in the form of fixed deposit with them.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
Pipara and Company Chartered Accountants |
|
Address : |
Pipara Corporate House, Near Gruh Finance, Netaji Marg, |
|
Tel. No.: |
91-79-40370370 to 374 |
|
Fax No.: |
91-79-40370376 |
|
E-Mail : |
|
|
PAN No.: |
ABEPP8813D |
|
|
|
|
Auditors 2 : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Heritage 3rd Floor, Near |
|
PAN No.: |
AABFD7919A |
|
|
|
|
Holding Company : |
Corrtech International Private Limited, CIN No.: U29130GJ1982PTC038664 |
|
|
|
|
Wholly Owned
Subsidiary Company : |
Crosstown Power ( CIN No.: U74990GJ2004PTC45060 |
|
|
|
|
Subsidiary
Company : |
MJB India Technical Services Private Limited CIN No.: U29197GJ2006PTC047603 |
|
|
|
|
Associate
Concern : |
MJB India Industrial Repairs Private Limited |
|
|
|
|
Fellow
Subsidiary : |
Control Plus Oil and Gas Solutions Private Limited |
|
|
|
|
Entity
Controlled by Key Management Personnel : |
IEC Projects Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4000000 |
Equity Shares |
Rs.10/- each |
Rs.40.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2100000 |
Equity Shares |
Rs.10/- each |
Rs.21.000
millions |
(All the above Shares are held by the Holding
Company, Corrtech International Private Limited and its nominees.)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
21.000 |
21.000 |
21.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
270.066 |
222.126 |
150.301 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
291.066 |
243.126 |
171.301 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
136.231 |
90.441 |
78.887 |
|
|
2] Unsecured Loans |
0.000 |
22.837 |
41.897 |
|
|
TOTAL BORROWING |
136.231 |
113.278 |
120.784 |
|
|
DEFERRED TAX LIABILITIES |
4.688 |
3.830 |
3.966 |
|
|
|
|
|
|
|
|
TOTAL |
431.985 |
360.234 |
296.051 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
85.796 |
86.088 |
94.352 |
|
|
Capital work-in-progress |
76.549 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
26.580 |
27.580 |
27.580 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
148.383
|
121.411 |
110.344 |
|
|
Sundry Debtors |
112.562
|
279.431 |
186.245 |
|
|
Cash & Bank Balances |
35.776
|
27.771 |
15.467 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
15.320
|
21.664 |
50.257 |
|
Total
Current Assets |
312.041
|
450.277 |
362.313 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
59.969
|
168.866 |
147.767 |
|
|
Other Current Liabilities |
4.745
|
15.333 |
8.126 |
|
|
Provisions |
4.267
|
19.512 |
32.314 |
|
Total
Current Liabilities |
68.981
|
203.711 |
188.207 |
|
|
Net Current Assets |
243.060
|
246.566 |
174.106 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.013 |
|
|
|
|
|
|
|
|
TOTAL |
431.985 |
360.234 |
296.051 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Income from Operations |
464.943 |
689.651 |
420.697 |
|
|
|
Other Income |
2.701 |
2.749 |
9.061 |
|
|
|
TOTAL (A) |
467.644 |
692.400 |
429.758 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials, Manufacturing and Operating Expenses |
305.476 |
533.230 |
|
|
|
|
Employees Emoluments |
37.220 |
27.338 |
|
|
|
|
Administrative, Selling and Distribution Expenses |
23.581 |
16.377 |
|
|
|
|
Increase / Decrease in Inventories |
1.011 |
(22.454) |
(6.527) |
|
|
|
TOTAL (B) |
367.288 |
554.491 |
326.435 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
100.356 |
137.909 |
103.323 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
CHARGES (D) |
8.741 |
9.393 |
9.553 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
91.615 |
128.516 |
93.770 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
13.345 |
13.768 |
13.341 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
78.270 |
114.748 |
80.429 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
30.331 |
42.923 |
24.447 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
47.939 |
71.825 |
55.982 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
178.126 |
106.301 |
50.319 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
226.065 |
178.126 |
106.301 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
152.294 |
123.629 |
166.601 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Consumables |
0.237 |
2.753 |
NA |
|
|
|
Trading Goods |
57.746 |
61.792 |
NA |
|
|
|
Capital Goods |
0.408 |
3.004 |
NA |
|
|
TOTAL IMPORTS |
58.391 |
67.549 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
22.83 |
34.20 |
26.66 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
10.25
|
10.37 |
13.03 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.83
|
16.64 |
19.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.67
|
21.39 |
17.61 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.47 |
0.47 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.71
|
1.30 |
1.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.52
|
2.21 |
1.93 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF OPERATION AND FUTURE PROSPECTS:
During the year, the
Company has earned of Rs.467.600 millions from operations. The net profit after
tax for the year has been Rs.47.900 millions as against Rs.71.800 millions
during the previous financial year. The Directors are continuously looking for
avenues for future growth of the Company.
The Company has
consolidated its new status as a manufacturer of Gas Turbine parts and set up a
manufacturing unit at Ahmedabad. A huge investment has been incurred towards
development costs for the manufacture of Turbine Components. The overall
outlook is very positive. More gas is expected to be available in the Indian
market in the years to come, which shall lead to an increase in the Gas Turbine
Population. Besides, the Company is slowly increasing its market share of the
existing market and with its new forays, it can be safely expected that the
Company shall continue to grow from strength to strength. The next major
initiatives being planned are to set up a Rotor Refurbishment facility and to
get into the business of Refurbishing / Rehabilitating of Old Used Gas
Turbines.
CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED
FOR (As on 31.03.2011)
·
Performance guarantees given by Bank on behalf of
the Company Rs.35.589 millions
·
Letters of Credit in favor of suppliers Rs.9.153
millions
·
Disputed sales tax liability Rs.3.580 millions
FORM 8
|
Corporate identity number of the company |
U52330GJ2000PLC037925 |
|
Name of the company |
CORRTECH ENERGY LIMITED |
|
Address of the registered office or of the principal place of business in |
22, Dhara Centre, Near Vijay Char Rasta, Navrangpura, Ahmedabad – 380
009, |
|
This form is for |
Modification of charge |
|
Charge identification (ID) number of the charge to be modified |
10138804 |
|
Type of charge |
Book debts Movable property (not being pledge) |
|
Particular of charge holder |
Axis Bank Limited Trishul, 3rd Floor, Opposite Samartheshwar E-Mail : pranav.pandit@axisbank.com |
|
Nature of instrument creating charge |
Renewal Cum Enhancement of Credit Facility by way of Supplemental Deed
of Hypothecation. |
|
Date of instrument Creating the charge |
07.12.2010 |
|
Amount secured by the charge |
Rs.299.000 millions |
|
Brief of the principal terms an conditions and extent and operation of
the charge |
Rate of Interest As per sanction terms for various facilities Terms of Repayment As per sanction terms for various facilities Margin As per sanction terms for various facilities Extent and Operation of the charge Working Capital and Term Loan- First charge on the entire current
assets of the company and first charge n the entire unencumbered movable
fixed assets of the company and proposed to be acquired out of TL-I and II,
both present and future. |
|
Short particulars of the property or asset(s) charged (including
complete address and location of the property) |
Working Capital and Term Loan- First charge on the entire current
assets of the company and first charge on the entire unencumbered movable
fixed assets of the company and proposed to be acquired out of TL-I and II,
both present and future. |
|
Particulars of the present modification |
Supplemental deed of Hypothecation executed for creating first charge
over entire current assets and unencumbered movable fixed assets of the company
for securing the renewed and enhanced credit facilities aggregating to
Rs.299.000 millions granted to the company. |
FIXED ASSETS
·
Residential Buildings
·
Plant and Machinery
·
Furniture and Fixtures
·
Computers and Printers
·
Office Equipment
·
Vehicles
WEB DETAILS
HISTORY
Corrtech International Private Limited (CIPL) was incorporated in 1982
with an objective of providing corrosion protection solutions to the
hydrocarbon industry. It gradually grew into a specialist "Cathodic
Protection Systems" provider for corrosion control and mitigation for
underground and submerged pipelines and storage tanks. CIPL has been a market
leader in the industry for more than the last two decades.
In the subsequent years, through various diversifications and
expansions, Corrtech has developed into an "Integrated Services
Provider" to the Oil and Gas and Power Generation industries.
COMPANY PROFILE
Subject was
incorporated as "IEC International Limited" in the year 2000. In
2002, IEC was renamed "MJB
"MJB India
Gas Turbine Services Limited" was again renamed as "Corrtech Energy
Limited"(CEL), in 2009.
Subject is a
wholly owned subsidiary of Corrtech International Private Limited (CIPL). It
was set up with an objective of providing reliable and cost effective
alternatives for gas turbine support services to owners and operators of GE
design heavy duty industrial gas turbines in
Subject started
its’ journey as a gas turbines services provider by developing field services
capabilities. In 2004, subject set up a state of the art component repair shop
at Ahmedabad and shortly thereafter, it setup facilities to manufacture
components.
Leveraging on its
technical strengths, engineering capabilities, state-of-the-art manufacturing
and repair facilities, global network and highly skilled employees, subject
offers a total maintenance support and gas turbine maintenance solutions to
customers worldwide.
Subject’s
management comprises professionals, and technical experts having in-depth
knowledge, rich experience and outstanding capabilities of implementing and
executing large scale gas turbine maintenance projects across the globe,
enabling the company to achieve its vision of being a global leader offering a
complete range of gas turbine maintenance solutions.
Their growth has
been empowered with steadfast and distinctive adherence to business ethics,
transparent governance and commitment to highest standards of social
responsibility.
Embracing the
virtues of integrity, excellence and commitment, they move ahead to take on the
opportunities and challenges awaiting them. They are geared to transform into a
truly global enterprise with a prudent mix of technical innovations and
exceptional customer service delivery.
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.51.65 |
|
|
1 |
Rs.81.05 |
|
Euro |
1 |
Rs.69.50 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--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 |
|
47 |
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.