MIRA
INFORM REPORT
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Report Date : |
09.12.2011 |
IDENTIFICATION DETAILS
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Name : |
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED |
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Registered
Office : |
Amul Dairy Complex , Anand 388011 , |
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Country : |
India |
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Year of
Establishment : |
1946 |
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Capital
Investment / Paid-up Capital : |
Not Divulged |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BRDK00963E |
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PAN No.: [Permanent Account No.] |
AAACK9026D |
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Legal Form : |
Subject is a Co-operative Society registered under
Co-operative Societies Act. |
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Line of Business
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Manufacturer, Trader, Exporter and Distributor of ‘Amul’
Brand Milk and Milk Products such as Milk, Milk Powder, Butter Milk, Cheese,
Curd, Butter, Ghee, Amul Lite, Nutramal, Chocolate, Pizza etc. |
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No. of Employees
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735 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a world-renowned successful venture in Co-operative sector. Amul brand effectively compete MNC brands. It can be regarded as a promising business partner with a
large credit line. |
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
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
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Name : |
Mr. Sanjay Desai |
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Designation : |
Purchases Department |
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Date : |
05.12.2011 |
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Name : |
Mr. Bhushan |
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Designation : |
Senior Officer |
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Contact No.: |
91-2692-256124 |
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Date : |
05.12.2011 |
LOCATIONS
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Registered Office/ Factory : |
Amul Dairy Mogar Complex, |
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Tel. No.: |
91-2692-256124 |
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Fax No.: |
91-2692-240225 |
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E-Mail : |
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Website : |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Ramsinh P. Parmar |
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Designation : |
Chairman |
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Name : |
Mr. Gordhan A. Patel |
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Designation : |
Vice Chairman |
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Name : |
Mr. Shivabhai M. Parmar |
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Designation : |
Director |
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Name : |
Mr. Maganbhai G. Zala |
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Designation : |
Director |
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Name : |
Mr. Navinbhai R. Patel |
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Designation : |
Director |
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Name : |
Mr. Pravinbhai M. Patel |
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Designation : |
Director |
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Name : |
Mr. Pravinsinh F. Solanki |
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Designation : |
Director |
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Name : |
Mr. Bhaijibhai A. Zalal |
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Designation : |
Director |
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Name : |
Mr. Raijibhai D. Patel |
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Designation : |
Director |
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Name : |
Ms. Madhuben D. Parmar |
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Designation : |
Director |
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Name : |
Ms. Saryuben B. Patel |
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Designation : |
Director |
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Name : |
Mr. Ranjitbhai K. Patel |
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Designation : |
Director |
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Name : |
Mr. C. B. Kotecha |
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Designation : |
Director |
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Name : |
Mr. B. M. Vyas |
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Designation : |
Director |
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Name : |
Mr. Rahul Kumar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Sanjay Desai |
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Designation : |
Purchases Department |
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Name : |
Mr. Bhushan |
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Designation : |
Senior Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Kaira District Cooperative Milk Producers’
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Trader, Exporter and Distributor of ‘Amul’ Brand
Milk and Milk Products such as Milk, Milk Powder, Butter Milk, Cheese, Curd,
Butter, Ghee, Amul Lite, Nutramal, Chocolate, Pizza etc. |
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Products : |
Ø
Infant Milk Food Ø
Skimmed Milk Powder Ø
Butter Ø
Cheese (Cheddar, Mozzarella, Emmental, Ø
Cheese Spreads Ø
Ghee Ø
Condensed Milk Ø
Chocolates Ø
Malted Milk Food Ø
Bread Spreads Ø
Fresh Milk Ø
UHT Milk Ø
Ice - Cream |
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Exports : |
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Products : |
All kind of Milk Products |
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Countries : |
·
Nepal ·
Abu Dhabi ·
Singapore ·
Kuwait ·
U.S.A. |
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Imports : |
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Products : |
Machinery |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit |
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Purchasing : |
L/C, Cash, Credit |
GENERAL INFORMATION
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Customers : |
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Wholesalers ·
Retailers ·
End Users |
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No. of Employees : |
735 (Approximately) |
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Bankers : |
· Axis Bank Vallabh Vidyanagar Branch, Anand, Gujarat, India |
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Banking
Relations : |
-- |
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Auditors : |
Not Available |
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Associates/Subsidiaries : |
· Gujarat State Co-operative Milk Marketing Federation Limited Address: Amul Dairy, Anand – 388001, India Line of Business: Marketing of Milk and Milk Products. |
CAPITAL STRUCTURE
Not Divulged
FINANCIAL DATA
[all figures are
in Rupees Millions]
Not Divulged
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject was registered on December 14, 1946 as a
response to exploitation of marginal milk producers by traders or agents of existing
dairies in the small town named Anand (in Kaira District of Gujarat). Milk Producers
had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand.
Often milk went sour as producers had to physically carry the milk in individual
containers, especially in the summer season. These agents arbitrarily decided
the prices depending on the production and the season. Milk is a commodity that
has to be collected twice a day from each cow/buffalo. In winter, the producer
was either left with surplus / unsold milk or had to sell it at very low
prices. Moreover, the government at that time had given monopoly rights to
Polson Dairy (around that time Polson was the most well known butter brand in
the country) to collect milk from Anand and supply it to Bombay city in turn.
India ranked nowhere amongst milk producing countries in the world because of
its limitations in 1946 British Raj.
Angered by the
unfair and manipulative trade practices, the farmers of Kaira District
approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister
and Home Minister of free India) under the leadership of the local farmer
leader Tribhuvandas Patel. Sardar Patel advised the farmers to form a
Cooperative and supply milk directly to the Bombay Milk Scheme instead of
selling it to Polson (who did the same but gave low prices to the producers).
He sent Morarji Desai (who later became Prime Minister of India) to organize the farmers. In
1946, the farmers of the area went on a milk strike refusing to be further
oppressed. Thus the Kaira District Cooperative was established to collect and
process milk in the District of Kaira in 1946. Milk collection was also
decentralized, as most producers were marginal farmers who were in a position
to deliver 1-2 litres of milk per day. Village level cooperatives were
established to organize the marginal milk producers in each of these villages.
The Cooperative
was further developed and managed by Dr. V Kurien along with Shri H M Dalaya.
The first modern dairy of the Kaira Union was established at Anand. Indigenous
research and development and technology development at the Cooperative had led
to the successful production of skimmed milk powder from buffalo milk – the
first time on a commercial scale anywhere in the world.
The success of
the dairy co-operative movement spread rapidly in Gujarat. Within a short span
five other district unions – Mehsana, Banaskantha, Baroda, Sabarkantha and
Surat were organized. In order to combine forces and expand the market while
saving on advertising and avoid a situation where milk cooperatives would
compete against each other it was decided to set up an apex marketing body of
dairy cooperative unions in Gujarat. Thus, in 1973, the Gujarat Co-operative
Milk Marketing Federation was established. Subejct which had established the
brand name Amul in
1955 decided to hand over the brand name to GCMMF (AMUL).
Dr. Verghese Kurien, the World Food Prize and the
Magsaysay Award winner, was the architect of India’s White Revolution, which
helped India emerge as the largest milk producer in the world.
Impressed with
the development of dairy cooperatives in Kaira District and its success, Shri Lal Bahadur Shastri, the
then Prime Minister of India during his visit to Anand in 1964, asked Dr. V
Kurien to replicate the Anand type dairy cooperatives all over India. Thus, the
National Dairy Developed Board was formed and Operation Flood Programme
was launched for replication of the Amul Model all over India.
GCMMF TODAY
GCMMF is India's
largest food products marketing organisation. It is a state level apex body of
milk cooperatives in Gujarat, which aims to provide remunerative returns to the
farmers and also serve the interest of consumers by providing affordable
quality products. GCMMF markets and manages the Amul brand. From mid-1990s Amul
has entered areas not related directly to its core business. Its entry into ice cream was regarded as
successful due to the large market share it was able to capture within a short
period of time – primarily due to the price differential and the brand name. It
also entered the pizza business, where the base and the recipes were
made available to restaurant owners who could price it as low as 30 rupees per
pizza when the other players were charging upwards of 100 rupees.
COMPANY INFO
The Gujarat
Cooperative milk Marketing Federation Limited, Anand (GCMMF) is the largest
food products marketing organisation of India. It is the apex organization of the
Dairy Cooperatives of Gujarat. This State has been a pioneer in organizing
dairy cooperatives and our success has not only been emulated in India but
serves as a model for rest of the World. Over the last five and a half decades,
Dairy Cooperatives in Gujarat have created an economic network that links more
than 3.1 million village milk producers with millions of consumers in
India These cooperatives collect on an average 9.4 million litres of milk
per day from their producer members, more than 70% of whom are small, marginal
farmers and landless labourers and include a sizeable population of tribal folk
and people belonging to the scheduled castes.
The turnover of
GCMMF (AMUL) during 2010-11 was Rs.97.74 billion. It markets the
products, produced by the district milk unions in 30 dairy plants, The farmers
of Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy,
Gandhinagar, Gujarat – which can handle 2.5 million litres of milk per day
and process 100 MTs of milk powder daily. GCMMF (AMUL)’s Total Quality
Management ensures the quality of products right from the starting point (milk
producer) through the value chain until it reaches the consumer.
Ever since the
movement was launched fifty-five years ago, Gujarat’s Dairy Cooperatives have
brought about a significant social and economic change to our rural people. The
Dairy Cooperatives have helped in ending the exploitation of farmers and
demonstrated that when our rural producers benefit, the community and nation
benefits as well.
The Gujarat
Cooperative Milk Marketing Federation Limited cannot be viewed simply as a
business enterprise. It is an institution created by the milk producers
themselves to primarily safeguard their interest economically, socially as well
as democratically. Business houses create profit in order to distribute it to
the shareholders. In the case of GCMMF the surplus is ploughed back to farmers
through the District Unions as well as the village societies. This circulation
of capital with value addition within the structure not only benefits the final
beneficiary – the farmer – but eventually contributes to the development of the
village community. This is the most significant contribution the Amul Model
cooperatives has made in building the Nation.
THE THREE-TIER "AMUL MODEL"
The Amul Model is a three-tier cooperative structure. This structure consists of a Dairy Cooperative Society at the village level affiliated to a Milk Union at the District level which in turn is furthler federated into a Milk Federation at the State level. The above three-tier structure was set up in order to delegate the various functions, milk collection is done at the Village Dairy Society, Milk Procurement and Processing at the District Milk Union and Milk and Milk Products Marketing at the State Milk Federation. This helps in eliminating not only internal competition but also ensuring that economies of scale is achieved. As the above structure was first evolved at Amul in Gujarat and thereafter replicated all over the country under the Operation Flood Programme, it is known as the ‘Amul Model’ or ‘Anand Pattern’ of Dairy Cooperatives.
Responsible for
Marketing of Milk and Milk Products Responsible for Procurement and Processing
of Milk Responsible for Collection of Milk Responsible for Milk Production
VILLAGE DAIRY
COOPERATIVE SOCIETY (VDCS)
The main functions of the VDCS are as follows:
·
Collection
of surplus milk from the milk producers of the village and payment based on
quality and quantity
·
Providing
support services to the members like Veterinary First Aid, Artificial
Insemination services, cattle-feed sales, mineral mixture sales, fodder and
fodder seed sales, conducting training on Animal Husbandry and Dairying, etc.
·
Selling
liquid milk for local consumers of the village
·
Supplying
milk to the District Milk Union
Thus, the VDCS in
an independent entity managed locally by the milk producers and assisted by the
District Milk Union.
DISTRICT
COOPERATIVE MILK PRODUCERS’ UNION (MILK UNION)
The main functions of the Milk Union are as
follows:
·
Procurement
of milk from the Village Dairy Societies of the District
·
Arranging
transportation of raw milk from the VDCS to the Milk Union.
·
Providing
input services to the producers like Veterinary Care, Artificial Insemination
services, cattle-feed sales, mineral mixture sales, fodder and fodder seed
sales, etc.
·
Conducting
training on Cooperative Development, Animal Husbandry and Dairying for milk
producers and conducting specialised skill development and Leadership
Development training for VDCS staff and Management Committee members.
·
Providing
management support to the VDCS along with regular supervision of its
activities.
·
Establish
Chilling Centres and Dairy Plants for processing the milk received from the
villages.
·
Selling
liquid milk and milk products within the District
·
Process
milk into various milk and milk products as per the requirement of State
Marketing Federation.
·
Decide
on the prices of milk to be paid to milk producers as well on the prices of
support services provided to members.
State
Cooperative Milk Federation (Federation) The main functions of the
Federation are as follows:
·
Marketing
of milk and milk products processed / manufactured by Milk Unions.
·
Establish
distribution network for marketing of milk and milk products.
·
Arranging
transportation of milk and milk products from the Milk Unions to the market.
·
Creating
and maintaining a brand for marketing of milk and milk products (brand
building).
·
Providing
support services to the Milk Unions and members like Technical Inputs,
management support and advisory services.
·
Pooling
surplus milk from the Milk Unions and supplying it to deficit Milk Unions.
·
Establish
feeder-balancing Dairy Plants for processing the surplus milk of the Milk
Unions.
·
Arranging
for common purchase of raw materials used in manufacture / packaging of milk
products.
·
Decide
on the prices of milk and milk products to be paid to Milk Unions.
·
Decide
on the products to be manufactured at various Milk Unions (product-mix) and
capacity required for the same.
·
Conduct
long-term Milk Production, Procurement and Processing as well as Marketing
Planning.
·
Arranging
Finance for the Milk Unions and providing them technical know-how.
·
Designing
and Providing training on Cooperative Development, Technical & Marketing
functions.
·
Conflict
Resolution and keeping the entire structure intact.
They have around
176 cooperative dairy Unions formed by 1,25,000 dairy cooperative
societies having a total membership of around 13 million farmers on the
same pattern, who are processing and marketing milk and milk products
profitably, be it Amul in Gujarat or Verka in Punjab, Vijaya in Andhra Pradesh
or a Nandini in Karnataka. This entire process has created more than 190 dairy
processing plants spread all over India with large investments by these
farmers’ institutions. These cooperatives today collect approximately
23 million kgs. of milk per day and pay an aggregate amount of more than
Rs.125 billion to the milk producers in a year.
IMPACT OF THE "AMUL MODEL"
The effects of
Operation Flood Programme are more appraised by the World Bank in its recent
evaluation report. It has been proved that an investment of Rs. 20 billion
over 20 years under Operation Flood Programme in 70s and 80s has
contributed in increase of India’s milk production by 40 Million Metric
Tonne (MMT) i.e. from about 20 MMT in pre- Operation Flood period to more
than 60 MMT at the end of Operation flood Programme. Thus, an incremental
return of Rs. 400 billion annually have been generated by an investment of
Rs. 20 billion over a period of 20 years. This has been the most
beneficial project funded by the World Bank anywhere in the World. One can
continue to see the effect of these efforts as India’s milk production
continues to increase and now stands at 90 MMT. Despite this fourfold
increase in milk production, there has not been drop in the prices of milk during
the period and has continued to grow.
Due to this
movement, the country’s milk production tripled between the years 1971 to 1996.
Similarly, the per capita milk consumption doubled from 111 gms per day in 1973
to 222 gms per day in 2000. Thus, these cooperatives have not just been
instrumental in economic development of the rural society of India but it also
has provided vital ingredient for improving health and nutritional requirement
of the Indian society. Very few industries of India have such parallels of
development encompassing such a large population.
These dairy
cooperatives have been responsible in uplifting the social and economic status
of the women folk in particular as women are basically involved in dairying
while the men are busy with their agriculture. This has also provided a
definite source of income to the women leading to their economic emancipation.
The three-tier
‘Amul Model’ has been instrumental in bringing about the White Revolution in
the country. As per the assessment report of the World Bank on the Impact of
Dairy Development in India, the ‘Anand Pattern’ has demonstrated the following
benefits:
·
Have
multi-dimensional impacts
·
The
importance of getting government out of commercial enterprises
·
The
importance of market failure in agriculture
·
The
power and problems of participatory organisations
·
The
importance of policy
ACHIEVEMENTS OF THE "AMUL MOVEMENT"
The dairy
cooperatives have been able to maintain democratic structure at least at the grass-root
level with the management committee of the village level unit elected from
among the members in majority of the villages.
The dairy
cooperatives have also been instrumental in bridging the social divide of
caste, creed, race, religion and language at the villages, by offering open and
voluntary membership.
ACHIEVEMENTS OF GCMMF
·
3.1
million milk producer member families
·
15,760
village societies
·
15
District Unions
·
9.4 million
liters of milk procured per day
·
Rs.
150 million disbursed in cash daily
·
GCMMF
is the largest cooperative business of small producers with an annual turnover
of Rs. 53 billion
·
The
Govt. of India has honoured Amul with the “Best of all categories Rajiv Gandhi
National Quality Award”.
·
Largest
milk handling capacity in Asia
·
Largest
Cold Chain Network
·
48
Sales offices, 5000 Wholesale Distributors, 7 lakh retail outlets
·
Export
to 37 countries worth Rs.1500.000 Millions
·
Winner
of APEDA award for nine consecutive years
AMUL BRAND BUILDING
GCMMF (AMUL) has
the largest distribution network for any FMCG company. It has nearly 50 sales
offices spread all over the country, more than 5,000 wholesale dealers and more
than 7,00,000 retailers.
AMUL is also the
largest exporter of dairy products in the country. AMUL is available today in
over 40 countries of the world. AMUL is exporting a wide variety of products
which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk,
Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA, West
Indies, and countries in Africa, the Gulf Region, and [SAARC] SAARCneighbours,
Singapore, The Philippines, Thailand, Japan and China.
In September
2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.
In 2011, Amul was
named the Most Trusted brand in the Food and Beverages sector in The Brand Trust Report,
published by Trust Research Advisory.
India's top 20 brands: Amul is No. 1: Rediff.com
PRODUCTS
Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi, Yoghurt, Buttermilk chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured
milk, basundi, Nutramul brand and others. In January 2006, Amul plans to launch
India's first sports drink Stamina, which will be
competing with Coca Cola's Powerade and PepsiCo's Gatorade.
In August 2007,
Amul introduced Kool Koko, a chocolate milk brand extending its product
offering in the milk products segment. Other Amul brands are Amul Kool, a low
calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink
coffee and India's first sports drink Stamina.
Amul's sugar-free
Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for
2007.
MASCOT
Since 1967 Amul
products' mascot has been the very recognisable "Amul baby" (a chubby butter girl
usually dressed in polka dotted dress) showing up on hoardings and
product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul.The mascot was first used for
Amul butter. But in recent years in a second wave of ad campaign for Amul
products, she has also been used for other product like ghee and milk.
An Amul butter ad
on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in between George Fernandes and Atal Behari Vajpayee.
ADVERTISING
In 1966, Amul
hired Sylvester daCunha, then managing director of the advertising agency
AS to design a new ad campaign for Amul Butter. daCunha designed an add campaign
as series of hoardings with topical ads, relating to day-to-day issues. The
campaign was widely popular and earned a Guiness world record for the longest running ad campaign in
the world. Since the 1980s, cartoon artist Bharat Dabholkar has been
involved with sketching the Amul ads, who rejected the trend of using
celebrities in advertisement campaigns. Dabholkar credited chairman Varghese
Kurien with creating a free atmosphere that fostered the development of the
ads.
Despite
encountering political pressure on several occasions, daCunha's agency has made
it a policy of not backing down. Some of the more controversial Amul ads
include one commenting on Naxalite uprising in West Bengal, on the Indian Airlines employees
strike, and the one depicting the Amul butter girl wearing a Gandhi cap.
Amul hired DraftFCB+Ulka for the
brands of Amul milk, chocolates, paneer, ghee, ice-cream.
IN POPULAR CULTURE
The establishment
of Amul is also known as White Revolution. The White Revolution of India inspired
the notable Indian film-maker Shyam Benegal to base his film Manthan (1976) on it. The
film starred Smita Patil, Girish Karnad, Naseeruddin Shah and Amrish Puri. The film itself was financed by over
five lakh rural farmers in Gujarat who contributed Rs 2 each to the film'š budget.
Upon its release, these same farmers went in truckloads to watch 'their' film,
making it a commercial success, the film was chosen for the 1977 National Film Award for Best Feature Film in Hindi. The Amul success story is taken up as a case
study in marketing in many premier management institutes across the world.
The White
Revolution ushered an era of plenty from a measly amount of milk production and
distribution. Aside from the great measurable success that this project was, it
also demonstrated the power of "collective might". A small set of
poor farmers of Kheda district in Gujarat had the vision and foresight to act
in a way that was good for the society and not for the self alone.
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 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.51.77 |
|
|
1 |
Rs.81.32 |
|
Euro |
1 |
Rs.69.42 |
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.