MIRA
INFORM REPORT
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Report Date : |
07.01.2011 |
IDENTIFICATION DETAILS
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Name : |
LANCO INDUSTRIES LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
01.11.1991 |
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Com. Reg. No.: |
013391 |
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CIN No.: [Company Identification No.] |
L74999AP1991PLC013391 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDL00513C |
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PAN No.: [Permanent Account No.] |
AAACL4108M |
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Legal Form : |
Public Limited Liability Company. Company's Shares are Listed on the Stocks
Exchange |
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Line of Business
: |
Manufacturer and Exporters of DI Spun Pipe, Flange Pipes, Foundry
Grade Pig Iron, |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 7000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. 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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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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 |
LOCATIONS
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Registered Office /Factory : |
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Tel. No.: |
91-8578-287650-55 |
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Fax No.: |
91-8578-287657 |
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E-Mail : |
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Website : |
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Marketing Office: |
148/150 (Old No. 98/99) |
DIRECTORS
AS ON 31.03.2010
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Name : |
Mr. G. Maruthi Rao |
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Designation : |
Director |
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Name : |
Mr. Mayank Kejriwal |
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Designation : |
Director |
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Name : |
Mr. Gouri Shankar Rathi |
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Designation : |
Director |
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Name : |
Mr. L. Madhusudhan Rao |
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Designation : |
Director |
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Name : |
Mr. G. Bhaskara Rao |
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Designation : |
Director |
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Name : |
Mr. L. Sridhar |
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Designation : |
Director |
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Name : |
Mr. P.M. Suresh (Nominee of
IDBI) |
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Designation : |
Director |
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Name : |
Mr. Vinod Kumar Agrawal, IAS (Nominee of APIDC) |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Shirish Kurane |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. G. D. Saini |
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Designation : |
Senior General Manager – Finance and Company Secretary |
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Name : |
Khaitan and Company |
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Designation : |
Solicitors |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Category of Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
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(A) Shareholding
of Promoter and Promoter Group |
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20,155,152 |
50.69 |
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20,155,152 |
50.69 |
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Total
shareholding of Promoter and Promoter Group (A) |
20,155,152 |
50.69 |
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(B) Public
Shareholding |
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|
17,325 |
0.04 |
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11,525 |
0.03 |
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|
244,200 |
0.61 |
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10,050 |
0.03 |
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283,100 |
0.71 |
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2,443,703 |
6.15 |
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4,612,896 |
11.60 |
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10,700,142 |
26.91 |
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1,568,602 |
3.94 |
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1,513,640 |
3.81 |
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43,962 |
0.11 |
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11,000 |
0.03 |
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19,325,343 |
48.60 |
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Total Public
shareholding (B) |
19,608,443 |
49.31 |
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Total (A)+(B) |
39,763,595 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
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Total
(A)+(B)+(C) |
39,763,595 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporters of DI Spun Pipe, Flange Pipes, Foundry
Grade Pig Iron, |
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Products : |
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PRODUCTION STATUS
AS ON 31.03.2010
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Particulars |
Unit |
Installed
Capacity ($) |
Actual
Production |
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D I Spun Pipes |
MT |
180000 |
149604 |
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Pig Iron* |
MT |
150000 |
158503 |
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Cement + |
MT |
90000 |
68476 |
|
Coke ** |
MT |
150000 |
102862 |
$ As certified by the Management.
* includes 1,54,897 M.T. (Previous year 1,36,137 M.T.) used for captive
consumption.
+ Includes 13,963 M.T. (Previous Year 10,087 M.T.) used for Captive
Consumption.
** For captive consumption.
Licensed Capacity is not applicable in terms of Government of India's
Notification No. S.O. 477 (E)dated 25th July 1991.
GENERAL INFORMATION
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Bankers : |
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Facilities : |
Rs. In Millions
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
K.R. Bapuji and Company Chartered Accountant |
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Address : |
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Associates/Subsidiaries : |
Electrosteel Castings Limited |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
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|
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|
53000000 |
Equity Shares |
Rs. 10 each |
Rs.530.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
39763595 |
Equity Shares (Including
2,67,85,500 Equity shares allotted as fully paid up pursuant to the Scheme of
Amalgamation without payment being received in cash) |
Rs. 10 each |
Rs.397.636 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
397.636 |
397.636 |
397.636 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1371.391 |
854.977 |
717.970 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1769.027 |
1252.613 |
1115.606 |
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LOAN FUNDS |
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1] Secured Loans |
2648.650 |
3322.746 |
1783.233 |
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2] Unsecured Loans |
613.029 |
487.854 |
1227.132 |
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TOTAL BORROWING |
3261.679 |
3810.600 |
3010.365 |
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DEFERRED TAX LIABILITIES |
343.574 |
312.373 |
257.695 |
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|
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TOTAL |
5374.280 |
5375.586 |
4383.666 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2775.909 |
2823.998 |
2638.835 |
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Capital work-in-progress |
344.121 |
42.537 |
86.201 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
1151.949
|
1443.648 |
1209.291 |
|
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Sundry Debtors |
1184.580
|
1196.616 |
881.431 |
|
|
Cash & Bank Balances |
151.642
|
355.027 |
42.010 |
|
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Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
558.147
|
602.093 |
528.966 |
|
Total
Current Assets |
3046.318
|
3597.384 |
2661.698 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Sundry Creditors |
591.989
|
934.388 |
861.774 |
|
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Other Current Liabilities |
93.405
|
76.450 |
70.164 |
|
|
Provisions |
106.674
|
77.495 |
71.130 |
|
Total
Current Liabilities |
792.068
|
1088.333 |
1003.068 |
|
|
Net Current Assets |
2254.250
|
2509.051 |
1658.630 |
|
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|
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|
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
5374.280 |
5375.586 |
4383.666 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
|
|
|
|
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Sales |
6905.796 |
6447.161 |
4636.563 |
|
|
|
Other Income |
7.193 |
21.018 |
9.321 |
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|
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TOTAL (A) |
6912.989 |
6468.179 |
4645.884 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
3757.814 |
3977.551 |
2477.993 |
|
|
|
Purchases |
64.058 |
60.733 |
|
|
|
|
Manufacturing Expenses |
1876.111 |
1497.999 |
887.480 |
|
|
|
Increase/(Decrease) in Finished Goods |
(50.399) |
24.682 |
(1.416) |
|
|
|
Cost of Material Sold |
0.000 |
0.000 |
65.916 |
|
|
|
Office Expenses |
0.000 |
0.000 |
247.956 |
|
|
|
Administrative Expenses |
0.000 |
0.000 |
186.253 |
|
|
|
TOTAL (B) |
5647.584 |
5560.965 |
3864.182 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1265.405 |
907.214 |
781.702 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
206.182 |
460.748 |
230.259 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1059.223 |
446.466 |
551.443 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
179.460 |
164.184 |
151.299 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
879.763 |
282.282 |
400.144 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
300.366 |
98.753 |
140.970 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
579.397 |
183.529 |
259.174 |
|
|
|
|
|
|
|
|
|
|
Prior Period
Adjustment-Taxation |
6.799 |
0.000 |
(5.546) |
|
|
|
|
|
|
|
|
|
|
Debenture
Redemption Reserve written back |
75.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
114.380 |
124.248 |
85.892 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
540.000 |
100.000 |
150.000 |
|
|
|
Dividend |
59.645 |
39.764 |
39.764 |
|
|
|
Tax on Dividend |
10.137 |
6.758 |
6.758 |
|
|
|
Transfer to Debenture Redemption Reserve |
0.000 |
46.875 |
18.750 |
|
|
BALANCE CARRIED
TO THE B/S |
165.794 |
114.380 |
124.248 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.000 |
16.701 |
NA |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1872.272 |
2471.456 |
NA |
|
|
|
Stores & Spares |
158.016 |
221.892 |
NA |
|
|
|
Capital Goods |
98.234 |
76.346 |
NA |
|
|
TOTAL IMPORTS |
2128.522 |
2769.694 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
14.57 |
4.62 |
6.52 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
1106.160 |
1720.680 |
|
Total Expenditure |
901.900 |
1383.000 |
|
PBIDT (Excl OI) |
204.260 |
337.680 |
|
Other Income |
0.000 |
0.000 |
|
Operating Profit |
204.260 |
337.680 |
|
Interest |
58.100 |
0.670 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
146.150 |
337.010 |
|
Depreciation |
45.270 |
45.150 |
|
Profit Before Tax |
100.890 |
291.860 |
|
Tax |
30.270 |
87.560 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
70.620 |
204.300 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
70.620 |
204.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.38
|
2.83 |
5.57 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.73
|
4.37 |
8.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.11
|
4.39 |
7.54 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.49
|
0.22 |
0.35 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.48
|
4.16 |
3.82 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.84
|
3.30 |
2.65 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS
During the year, the
Company has sold 1,49,805 MT of D.I. pipes compared to previous year's
dispatches of 1,23,345 MT, registering an increase of 21.50% and the Sales
(Gross) of the Company increased from Rs. 6804.700 millions in FY 2008-09 to
Rs. 7105.200 millions in FY 2009-10. The profit (PBT) for the year, however,
was considerably higher at Rs. 879.800 millions as against Rs. 282.300 millions
reported in the previous year. The improved profitability is mainly
attributable to higher volumes, reduced input costs, better sales realization
and effective fund management resulting in lower interest expenses compared to
last year.
The quantity of
Low Ash Metallurgical Coke produced in the Coke Oven Plant was lower by 9% at
1,02,862 MT in FY 2009-10 as against 1,13,052 MT in FY 2008-09, due to shutdown
of some ovens for major repair. The units of power generated in the 12 MW Waste
Heat Recovery Based Captive Power Plant of the Company were also lower at
53.600 millions units during the year under review compared with 62.900 millions
units in the preceding year due to reduced production of Coke Oven Plant. The
production of Mini Blast Furnace (MBF) producing liquid metal mainly for
Ductile Iron Pipe Plant, for the year was higher at 1,58,503 MT compared with
1,48,433 MT in the previous year, reflecting an increase of about 7%. The
production of D.I. Pipes was higher by about 21% at 1,49,604 MT compared with
1,23,422 MT in the preceding year. The higher production is attributable to
increased liquid metal availability from MBF and full-fledged operation of
additional Induction Furnaces and Annealing Furnace installed during the
previous year.
The production of
Cement during the year was lower by 21% at 68,476 MT compared to 86,812 MT in
the previous year, due to curtailed operations on account of sluggish market
conditions prevailing during the year under review, particularly affecting the
demand for slag cement.
As already
reported in the previous year, the Company is in the process of repairing the
Mini Blast Furnace along with installation of Hot Blast Stoves, which is
expected to be commissioned by June, 2010 to increase the liquid metal capacity
of the plant to 225,000 TPA. This, along with additional balancing equipments
being installed in D.I. Pipe Plant, will increase the D.I. Pipes capacity also
to 225,000 TPA.
FUTURE PROSPECTS
Given the trend of
spiraling prices of iron ore and coal and also the upcoming capacities
in the D.I. Pipes sector, the margins would be under pressure in the coming
years. However, Company is adopting various cost reduction measures like
installation of Hot Blast Stoves etc., to reduce the impact. As a measure of
further cost reduction, the Company also envisages to install a Sinter Plant,
which along with balancing equipments being installed in Ductile Iron Pipe
Plant will further increase the liquid metal and D.I. pipe capacity to 275,000
TPA by September, 2011. The Company plans to finance these investments through
internal accruals and the Term Loans already sanctioned by the Banks. With all
there developments on course, the future outlook for the performance of the
Company appears to be positive.
MANAGEMENT
DISCUSSION & ANALYSIS
OVERVIEW
Lanco Industries
Limited (LIL) promoted by Lanco Group in 1992 set up a Mini Blast Furnace (MBF)
in 1994 with an installed capacity of 90,000 TPA to manufacture and sell Pig
Iron to foundry units across
INDUSTRY OUTLOOK
The water
resources in the country are limited and cannot be wasted. The losses like
leakage, wastage etc., need to be arrested. D.I. Pipes in this regard are found
to be quite stronger and have longer life span, are easier to tap, require less
support and have a lower life cycle cost compared to other types of pipes used
for water supply and sanitation. With the continued emphasis given by the
Government of India for laying pipelines for water and sewerage transportation,
the demand for D.I. Pipes is expected to remain strong in the coming years.
OUTLOOK
The Company has
been taking adequate steps for improvement in plant efficiency, strengthening
value addition, continuously focusing on cost control measures and has been successful
in managing financial resources effectively. As part of further backward
integration, the Company also envisages to install a Sinter Plant, which along
with balancing equipments being installed in Ductile Iron Pipe Plant will
further increase the liquid metal and D.I. pipe capacity to 275,000 TPA by
September, 2011. Higher capacity utilization and growth in demand for D.I.Pipes
indicate towards a positive outlook for the performance of the Company in the
coming years.
CONTINGENT LI
Rs. In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
a) Guarantees
given by banks on behalf of the Company |
126.929 |
121.416 |
|
b) Bills
discounted with banks |
0.000 |
59.158 |
|
c) Various demands
raised, which in the opinion of the management are not tenable and
are pending with various forums / authorities: |
|
|
|
i) Sales Tax |
82.628 |
71.341 |
|
ii) Excise
Custom Duty and Service Tax |
10.350 |
431.300 |
|
iii) Income Tax |
5.976 |
0.307 |
FIXED ASSETS:
- Land
- Non
- Plant and
Machinery
- Electrical
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AS PER WEBSITE
Profile :
Lanco Industries Limited (LIL) was incorporated on 1 st November,
1991 by Lanco Group of Companies to manufacture Pig Iron using Korf (German)
technology and Cement. The unit is located at
Due to the poor demand and other reasons, the operations of the cement unit of
the Company was suspended and the unit was reengineered for producing a different
product mix having potential in south India.
As a measure of forward integration project for adding value to the Pig Iron
manufactured by the Company, LIL floated an another company named Lanco
Kalahasthi Castings Limited (LKCL) on 4 th March 1997 to manufacture iron
castings and spun pipes in the same campus of the Company with an annual
capacity of 40,000 TPA and 35,700 TPA respectively. Accordingly, LIL had an
arrangement with LKCL for supply of molten iron and Pig Iron to LKCL, being a
value added product, as such iron pipes manufactured by LKCL offered better
returns.
However, due to falling Pig Iron prices, increase additional capacity in the
industry, competition and the technical and financial assistance, the
operations of both LIL and LKCL were effected and the Company was exploring
financial and technical strategic alliance with Indian / Foreign Partner.
During the same time M/s. Electrosteel Castings Limited, was also looking for
additional capacities for producing spun pipes. Considering the synergies
involved, Lanco Industries Limited entered into a strategic alliance
partnership during December 2002, with M/s. Electrosteel Castings Limited
(ECL), Kolkatta a leading manufacturer of CI, Pipes and DI pipes. This was
win-win situation for both LIL and ECL. After takeover, a financial
re-engineering and re-structuring of LIL was undertaken by ECL by implementing
the following: -
- Immediately
after take over an amount of Rs.220.000 Millions was infused as share
capital of the Company by M/s.ECL to strengthen the equity base of the
company.
- During 2002,
the capacity of Pig Iron was increased from 90,000 TPA to 150,000 TPA.
- With effect
from 1 st April, 2003 LKCL was merged with the company to take advantage
of the close synergy in the business of the two companies, since a large
part of Molten Iron / Pig Iron is consumed by LKCL for manufacture of DI
Pipes.
- After the
merger, the share capital of LIL, the paid up share value of Rs.10/- was
reduced to Rs.2.50 per share and accordingly one share of Rs.10/- each
fully paid up in LIL was issued to all the existing shareholders for every
4 shares held by them.
- During 2003,
the capacity of the DI pipes was increased to 90,000 TPA.
- During 2004,
the company took the step of backward integration by setting up 150,000
TPA coke oven plant in the same complex, which was commissioned in June
2005.
- During 2005,
the company started setting up of a Captive Power Plant of 12 MW by using
the waste heat recovered from the coke oven plant which is expected to be
commissioned by March 2006.
- An additional
amount of Rs.250.000 Millions is being spent on other capital works like
revamping of bitumen coating machine, balancing equipment and facilities
for production of higher diameter DI pipes etc. to increase the capacity
of DI pipes from the present 90,000 TPA to 120,000 TPA by 2006-07.
The above has resulted in the company witnessing a
profitable years after a gap of 8 years during the years ended 31 st March,
2003, 2004 and 2005 and a dividend of 10% was declared for the years ended 31
st March 2004 and 2005 to the shareholders.
Step by Step Company's Growth
1991 Incorporation of Lanco
1994 Setting up of Mini Blast
Furnace with 90,000 TPA capacity
1995 Setting up a 250 TPD Mini Cement Plant
1997 Setting up of LKCL for
manufacture of 40,000 TPA castings and 35,700 TPA D I Pipes
2002 Strategic
2002 Infusion of Rs.2200 Millions
to the equity and financial restructuring
2003 Merger of LKCL with LIL for
synergy
2003 Capacity of Pig Iron was
increased to 90,000 TPA to 150000 TPA.
2004 Capacity of DI Pipes was
increased to 90,000 TPA.
2005 Commissioning of 150,000 TPA
coke oven plant.
2005 Setting up of Captive Power
Plant of 12 MW by using the waste heat recovered from the coke oven plant.
- Pig Iron
Project was conceived in 1992. Commercial production started in
September 1994. Capacity:- 90,000 TPA at inception.
- Cement
division started commercial production in 1996.
- Spun Pipe
Project conceived in March 1998 and commercial production commenced
in January 2000. Capacity:-60,000 TPA at inception.
- ECL joined as
strategic partner in 2002 / LKCL Merged with LIL in 2003
- New 1,50,000
TPA Coke Oven Plant Commissioned in 2005
“ An integrated industrial complex for manufacture of DI
Pipes ”
Expansion/New Projects after Take-over: Investment Rs.
1750.000 Millions
- Spun Pipe
Division Capacity increased from
60,000 TPA to 90,000 TPA
- Pig Iron
Division Capacity increased from 90,000
TPA to 1,75,000 TPA
- Coke Oven
Division New Plant with a Capacity
of 1,50,000 TPA
- 12 MW
Capacity Power Plant Expected
Commissioning by End May'07
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.45.31 |
|
|
1 |
Rs.70.26 |
|
Euro |
1 |
Rs.59.56 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.