MIRA
INFORM REPORT
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Report Date : |
11.01.2011 |
IDENTIFICATION DETAILS
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Name : |
RUCHIRA PAPERS 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 : |
08.12.1980 |
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Com. Reg. No.: |
004336 |
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CIN No.: [Company Identification
No.] |
L21012HP1980PLC004336 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PTLR11324F |
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PAN No.: [Permanent Account No.] |
AABCR1676F |
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Legal Form : |
A Public Limited Liability Company. The Company Shares are listed on
stock exchange. |
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Line of Business
: |
Manufacturer of Paper. |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 2340400 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
some accumulated losses being incurred by the company. However trade
relations are reported as fair. Business is active. Payments are reported to
be slow. The company can be considered for business dealings with some caution. |
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 |
INFORMATION DENIED BY
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Name : |
Mr. Gaurav |
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Designation : |
Accounts Department |
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Date : |
10.01.2011 |
LOCATIONS
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Registered / Factory Office : |
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Tel. No.: |
91-1702-238537/238654/238536/261116/261156 |
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Fax No.: |
91-1734-261141 |
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E-Mail : |
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Website : |
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Head Office : |
J -34, Lower Ground Floor, South Extension Part -1, |
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Administrative Office : |
21-22, New Professor Colony, Yamuna Nagar – 135001, Haryana |
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Tel. No.: |
91-1732-233799 / 233140 |
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Fax No.: |
91-1732 -230403 |
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E-Mail : |
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Branches : |
35, Ring Road, Lajpat Nagar – IV, |
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Tel. No.: |
91-11-26442026 / 26442027 |
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Fax No.: |
91-11-26442028 |
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E-Mail : |
DIRECTORS
AS ON 30.09.2010
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Name : |
Mr. Jatinder Singh |
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Designation : |
Chairman cum Whole Time Director |
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Name : |
Mr. Subhash Chander Garg |
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Designation : |
Co-Chairman cum Whole Time Director |
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Name : |
Mr. Umesh Chander Garg |
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Designation : |
Managing Director |
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Name : |
Mr. Jaleshwar Narain Singh |
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Designation : |
Executive Director |
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Name : |
Mr. Dalbir Singh |
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Designation : |
Director |
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Name : |
Mr. Surinder Gupta |
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Designation : |
Director |
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Name : |
Mr. Sawtantar Kumar Dewan |
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Designation : |
Director |
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Name : |
Mr. Avtar Singh Bajwa |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Hussan Kumar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Category
of Shareholders |
No. of Shares |
Percentage |
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(A) Shareholding of Promoter and Promoter Group |
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Individuals / Hindu Undivided Family |
11778874 |
52.53 |
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Bodies Corporate |
510521 |
2.28 |
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Any Others (Specify) |
1280 |
0.01 |
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Directors / Promoters and their relatives
and friends |
1280 |
0.01 |
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Sub Total |
12290675 |
54.82 |
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Total shareholding of Promoter and Promoter Group (A) |
1290675 |
54.82 |
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(B) Public Shareholding |
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|
2224731 |
9.92 |
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224731 |
9.92 |
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1600644 |
7.14 |
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3373922 |
15.05 |
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2301796 |
10.227 |
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630036 |
2.81 |
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Trust |
730 |
-- |
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Non Resident Indians |
126701 |
0.57 |
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Clearing Members |
56271 |
0.25 |
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Hindu Undivided Families |
446334 |
1.99 |
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|
7906398 |
35.26 |
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Total Public shareholding (B) |
10131129 |
45.18 |
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Total (A)+(B) |
22421804 |
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) |
22421804 |
-- |
(1) Indian
(2)
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacturer of Paper. |
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Products : |
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PRODUCTION STATUS AS ON (31.03.2010)
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Particulars |
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Installed
Capacity |
Actual
Production |
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Linear Kraft Paper Writing and Printing Paper |
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|
85800 ( TPA) |
74728.410 (M.T.) |
GENERAL INFORMATION
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No. of Employees : |
2500 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
J. L. Garg and Company Chartered Accountant |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
31000000 |
Equity Shares |
Rs. 10 each |
Rs.310.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
22421804 |
Equity Shares (Including 1965500 Equity Shares issued for consideration other than
cash) |
Rs. 10 each |
Rs.224.218
millions |
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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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1] Share Capital |
224.218 |
224.218 |
224.218 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
360.898 |
406.757 |
426.237 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
585.116 |
630.975 |
650.455 |
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LOAN FUNDS |
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1] Secured Loans |
1374.991 |
1383.741 |
1061.766 |
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2] Unsecured Loans |
35.080 |
31.080 |
12.675 |
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TOTAL BORROWING |
1410.071 |
1414.821 |
1074.441 |
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DEFERRED TAX LIABILITIES |
48.951 |
75.103 |
79.687 |
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TOTAL |
2044.138 |
2120.899 |
1804.583 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1801.635 |
1872.953 |
1067.004 |
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Capital work-in-progress |
0.000 |
13.118 |
506.296 |
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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 |
322.991
|
275.001 |
125.610 |
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Sundry Debtors |
195.365
|
184.168 |
126.962 |
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Cash & Bank Balances |
16.771
|
19.204 |
14.436 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
44.497
|
54.893 |
83.971 |
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Total
Current Assets |
579.624
|
533.266 |
350.979 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
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|
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Sundry Creditors |
249.152
|
225.999 |
77.544 |
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Other Current Liabilities |
52.265
|
43.157 |
8.336 |
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Provisions |
35.704
|
29.399 |
34.049 |
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Total
Current Liabilities |
337.121
|
298.555 |
119.929 |
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Net Current Assets |
242.503
|
234.711 |
231.050 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.117 |
0.233 |
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|
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TOTAL |
2044.138 |
2120.899 |
1084.583 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
1994.514 |
1609.700 |
836.061 |
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Other Income |
7.935 |
15.224 |
3.795 |
|
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TOTAL (A) |
2002.449 |
1624.924 |
839.856 |
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Less |
EXPENSES |
|
|
|
|
|
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|
Raw materials, Fuel and Chemicals Consumed |
1372.317 |
1176.370 |
503.544 |
|
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Manufacturing Expenses |
306.720 |
220.888 |
141.642 |
|
|
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Administrative, Selling and Other Expenses |
132.569 |
107.605 |
59.475 |
|
|
|
Amalgamation Expenses written off |
0.117 |
0.117 |
0.117 |
|
|
|
Increase/(Decrease) in stocks of work-in-progress and finished goods |
(2.974) |
(39.598) |
(4.887) |
|
|
|
TOTAL (B) |
1808.749 |
1465.382 |
699.891 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
193.700 |
159.542 |
139.965 |
|
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|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
159.957 |
110.583 |
18.729 |
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
33.743 |
48.959 |
121.236 |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
102.899 |
68.637 |
19.376 |
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|
PROFIT BEFORE
TAX (E-F) (G) |
(69.156) |
(19.678) |
101.860 |
|
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|
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|
|
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Less |
TAX (H) |
(26.050) |
(3.734) |
30.182 |
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|
PROFIT AFTER TAX
(G-H) (I) |
(43.106) |
(15.944) |
71.678 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
203.262 |
219.206 |
147.528 |
|
|
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|
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|
BALANCE CARRIED
TO THE B/S |
160.156 |
203.262 |
219.206 |
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
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|
Export Earnings |
2.368 |
0.000 |
0.000 |
|
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TOTAL EARNINGS |
2.368 |
0.000 |
0.000 |
|
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IMPORTS |
|
|
|
|
|
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|
Raw Materials |
68.537 |
36.759 |
14.962 |
|
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|
Stores & Spares |
6.162 |
8.414 |
0.695 |
|
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TOTAL IMPORTS |
74.699 |
45.173 |
15.657 |
|
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|
|
|
|
|
|
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|
Earnings Per
Share (Rs.) |
1.92 |
0.71 |
3.20 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
|
Net Sales |
|
612.230 |
608.240 |
|
Total Expenditure |
|
503.840 |
535.710 |
|
PBIDT (Excl OI) |
|
108.390 |
72.530 |
|
Other Income |
|
0.260 |
2.090 |
|
Operating Profit |
|
108.660 |
74.630 |
|
Interest |
|
40.790 |
42.710 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
67.870 |
31.920 |
|
Depreciation |
|
26.170 |
26.580 |
|
Profit Before Tax |
|
41.700 |
5.340 |
|
Tax |
|
0.000 |
0.020 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
41.700 |
5.320 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(2.15)
|
(0.22) |
8.53 |
|
|
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|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.46)
|
(1.22) |
12.18 |
|
|
|
|
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|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.90)
|
(0.81) |
7.18 |
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
(0.11)
|
(.03) |
0.15 |
|
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|
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|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.98
|
2.71 |
1.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.71
|
1.78 |
2.92 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS AVAILABLE FOR
(Rs. In millions)
|
PARTICULARS |
AS ON 31.03.2010 |
AS ON 31.03.2009 |
AS ON 31.03.2008 |
|
Creditors for Raw Materials / Stores and Spares, etc |
164.776 |
136.153 |
41.931 |
|
Creditors for Capital Work |
84.376 |
89.844 |
35.612 |
RESULT OF
OPERATIONS
Sales of the Company registered a growth of 23.90% over the previous financial
year at Rs. 1997.080 Millions compared to Rs. 1611.770 Millions in
corresponding previous year. Though the operating profit (EBIDT) of the Company
grew from Rs.159.543 Millions in previous period to Rs. 193.700 Millions in the
year, but due to steep increase in the prices of raw materials especially
Agriculture Residues without commensurate increase in selling prices of
finished goods coupled with higher Depreciation and Interest, (being in only in
second year of operation of WandP Machinery), adversely affected the
profitability of the Company during Financial Year 2009-10.
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERALL
PERFORMANCE
The Company has managed to survive the recessionary phase and draught
like situation during three quarters, but last quarter witnessed increased sale
price with cooling off prices of raw materials. Overall The Company has
registered an upward trend in its performance over the previous year, which
marks a good sign and mainly attributable on account of:
a. Increase in the production and attaining economies of scale even
though the increase in cost of the raw materials and inputs.
b. Usage of the latest technology for achieving the optimum end product
and reduction in cost of production in comparison to increase in cost of
inputs.
c. Increase of sale prices of finished goods.
INDUSTRY STRUCTURE
AND DEVELOPMENT
The Million business of Ruchira Papers Limited is paper manufacturing.
The company was earlier engaged in the
manufacturing of Karft Paper used for corrugation, core pipes, cones etc
since 1983. With the setting up of 100 TPD Writing and Printing Paper plant,
the company has widened its product base in same segment of Paper in which the
company has expertise.
The health of Paper industry depends upon many factors like economic
growth, literacy rate, advertising, industrial activity, population growth and
most important the demand and supply dynamics.
The Indian Paper Industry has demonstrated secular general growth and
the consistent rise in demand. The per capita consumption of Paper in the
With the emphasis of Government of India on education and especially on
higher education, which the government has shown by imposing the Higher
Education Cess of 1 % during last year besides the normal education cess of 2 %
on direct and indirect taxes, the spending on the education will increase
substantially during next 3-5 year. The increase in education expenditure will
definitely require more Writing and Printing Paper and they anticipate the
faster growth rate of Writing and Printing Paper.
As per the study by Indian Paper
Manufacturers Association (IPMA), the consumption of paper in
to double form the current 7 million tones per annum in the next eight
years.
Due to the ecological problems caused by usage of plastic materials,
paper is becoming the most favored option for packaging. The growth of the
manufacturing sector will also enhance the demand for Kraft paper.
OPPORTUNITIES AND
THREATS
The Company being located in Himachal Pradesh is presently entitled to
100 % excise duty exemption upto June, 2013 in respect of Kraft Paper and
concessional rates of Central Sales tax at 1 % against 2 % in other states. The
Company has also set up 100 TPD Writing and Printing Paper unit, which is also
entitled for 100 % excise exemption for next 10 years with effect from
30.03.2008 (the date of start of commercial production). The company has also
set up Captive Power Cogeneration Plant, which helps the company to get the
cheap and uninterrupted power supply. The Company has set up Chemical Recovery
System to conserve the water and to control water pollution. Further the
location of the factory at the outskirts of Himachal Pradesh helps to get raw
material of agro residues from the neighboring agricultural rich states of
Haryana and
Threats: Due to liberalization in paper sector, foreign companies have
also been allowed an entry. Thus there could be investments in the paper
industry from foreign players.
FINANCIAL
PERFORMANCE
Sales of the Company registered a growth of 23.90% over the previous financial
year at Rs. 1997.080 Millions compared to Rs. 1611.770 Millions in
corresponding previous year. Though the operating profit (EBIDTA) of the
Company grew from Rs.159.543 Millions in previous period to Rs. 193.700
Millions in the year, but due to steep increase in the prices of raw materials
especially Agriculture Residues without commensurate increase in selling prices
of finished goods coupled with higher Depreciation and Interest, (being the
second year of operation of WandP Machinery), adversely affected the
profitability of the Company during Financial Year 2009-10.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2010
(Rs. In millions)
|
Particulars |
Quarter Ended 30.09.2010 |
Half Year Ended 30.09.2010 |
|
Net Sales/Income from Operations |
608.243 |
1220.475 |
|
Expenditure |
|
|
|
a ) (Increase)/ Decrease in stocks |
6.472 |
2.181 |
|
b) Consumption of Raw materials |
409.296 |
821.739 |
|
c) Manufacturing expenditure |
85.254 |
152.392 |
|
d) Administrative Expenses & Selling expenses |
34.683 |
63.228 |
|
e) Depreciation |
26.582 |
52.748 |
|
f) Other Expenses |
0.000 |
0.000 |
|
Total Expenditure( a+b+c+d+e+f) |
562.287 |
1092.288 |
|
Profit /(Loss) from Operations before Other Income, Interest and Exceptional items |
45.956 |
128.187 |
|
Other Income |
2.091 |
2.350 |
|
Profit /(Loss) from Operations before Interest and Exceptional items |
48.047 |
130.537 |
|
Interest |
42.706 |
83.493 |
|
Profit /(Loss) after Interest but before Exceptional items |
5.341 |
47.044 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit /(Loss) from Ordinary Activities before Tax |
5.341 |
47.044 |
|
Tax Expense |
0.022 |
0.022 |
|
Net Profit/( Loss) from Ordinary Activities After Tax |
5.319 |
47.022 |
|
Extra ordinary items ( Net of Tax Expense) |
0.000 |
0.000 |
|
Net Profit/( Loss) for the period |
5.319 |
47.022 |
|
Paid-up Equity Capital ( Face Value Rs.10/- Per Share ) |
224.218 |
224.218 |
|
Reserves excluding revaluation reserve |
407.920 |
407.920 |
|
Basic and diluted Earning/(Loss) per Share ( not annualised ) Rs. |
0.24 |
2.10 |
|
Public Shareholding: |
|
|
|
-No. of Shares |
1031129 |
10131129 |
|
-Percentage of shareholding |
45.18% |
45.18% |
|
Promoters and Promoters Group Shareholding : |
|
|
|
a) Pledged/Encumbered |
|
|
|
-No. of Shares |
NIL |
NIL |
|
-Percentage of shares ( as a % of the total shareholding of promoters and promoters group) |
NIL |
NIL |
|
-Percentage of shares ( as a % of the total share Capital of the Company) |
NIL |
NIL |
|
b) Non-encumbered |
|
|
|
-No. of Shares |
12290675 |
12290675 |
|
-Percentage of shares ( as a % of the total shareholding of promoters and promoters group) |
100% |
100% |
|
-Percentage of shares ( as a % of the total share Capital of the Company) |
54.82% |
54.82% |
NOTE:
- The above results for the quarter/half year ended 30th September, 2010 were reviewed by the Audit Committee and were taken on record by the Board of Directors in their meeting held on 27th October, 2010
- The Company operates in single business segment of Paper and there are no separate reportable segments as per Accounting Standard (AS) 17.
- The Company did not have any investor complaint as on July 1,2010 and received nil Complaint . There was no complaint pending as on September 30,2010.
- Previous period figures have been regrouped / rearranged , wherever necessary.
- The Writing & Printing Plant was under Annual shut down for preventative maintenance from 04.09.2010 to 18.09.2010
- The auditors of the company have carried out the limited review of the above unaudited results.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
(Rs.
In millions)
|
PARTICULARS |
AS ON 31.03.2010 |
AS ON 31.03.2009 |
|
In respect of various demands raised, which in the opinion of the Management are not tenable and are under appeal at various stages: |
|
|
|
Excise Matter |
31.089 |
31.089 |
|
Estimated amount of contracts remains to be executed on capital
account (Net of advances) |
0.000 |
0.510 |
|
Guarantees and Letter of Credit given by the bank on behalf of the
company |
25.962 |
34.110 |
FIXED ASSETS
- Land
- Building
- Tube Well
- Furniture
- Tools and Equipments
- Lab Equipments
- Office Equipments
- Vehicles
- Fax Machine
- Weighing Machine
- Computers
- Fire Fighting
WEBSITE DETAILS
PROFILE
Product
The Company is engaged in the manufacturing of Kraft Paper and Writing and
Printing Paper. Kraft Paper finds its application in the packaging Industry
especially for making Corrugated Boxes and for other packaging requirements.
The special feature of its Kraft Paper is load bearing Capacity and tensile
Strength which makes its most suitable for Corrugated packing application.
Writing and Printing Paper is used for multiple purposes.
Progress over the years
The Company was initially set up and commenced its
operations with a small 2310 TPA Capacity Agro Waste Paper Mill for
manufacturing of Kraft Paper. The Kraft Paper is chiefly used in packaging
industry for manufacturing of various types of packing boxes/cartons. Over the
Years, the Company has undertaken several phases of expansion and the
Production Capacity since then has increased from 2310 TPA to 52800 TPA.
The company has to set up 33000 TPA unit for manufacturing of writing and
printing paper adjoining to its existing unit in March,2008.
Company’s Approach and Perception
The Company has been maintaining pace with the changing technology in the Paper Industry. Since the start of Commercial production in 1983, the company has been regularly upgrading its Works.
Ruchira Papers has also demonstrated deep commitment to the cause of preserving
the environment by adopting environmental friendly practices leading to energy
conservation and ultimately savings add to the bottom line. The Company also
lays due emphasis on power conservation. CII (Confederation of Indian Industry)
energy audit team conducted a Detailed Energy Audit of Ruchira Papers including
all thermal and electrical equipments. Various energy saving proposals were
suggested and since then the company has been in the process of implementing
the proposals in a phased manner. Implementation of some of the proposals has
resulted into reduced power consumption (per ton of paper) which has added to
the profitability and economic viability of the Company. The Company was also
accredited with an appreciation letter from CII for contributing to the power
conservation. The Company has set up and properly maintained essential effluent
control facilities as per the norms of The Pollution Control Board.
Incentives and benefits enjoyed by
Ruchira
The Company being located in Himachal Pradesh, is enjoying the following tax benefits:
- 100% excise duty exemption upto June 09, 2013 subject to Government notifications issued from time to time for Kraft unit. Also 100% excise exemption for Ten Years from 30.03.2008 for Writing and Printing Unit.
- 100% income tax exemption for first five years with effect from Assessment year 2009-10 and there after 30% exemption for next five years.
- Concessional rates of central sales tax at 1% against 2% in other states.
- Capital Investment subsidy @ 15 % of investment in Plant and Machinery, subject to a ceiling of Rs. 3.000 millions.
- Power Tarrif in Himachal Pradesh is Rs. 3.50 Per unit against Rs. 4.00-4.50 Per unit in neighbouring states.
Opportunities in
Writing and Printing Paper Segment
The ever–increasing demand for Writing and Printing paper in domestic as well as international markets has thrown up a plethora of opportunities to the Company to diversify into Writing and Printing paper segment. Backed by buoyant economy coupled with the commitment of Government to increase literacy and growing awareness of quality paper among the consumers, this industry is on the threshold of a promising future. By delivering the international quality products and improving the operational efficiency and also by harnessing its inherent strengths, the Company has diversified into Writing and Printing paper.
Future Outlook for Paper Industry and
Prospects
The demand for paper in
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.45.44 |
|
|
1 |
Rs.70.61 |
|
Euro |
1 |
Rs.58.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.