MIRA INFORM REPORT

 

PRELIMINARY REPORT

 

 

Report Date :

20.01.2011

 

 

IDENTIFICATION DETAILS

 

Name :

LOYAL TEXTILE MILLS LIMITED

 

 

Registered Office :

21/4, Mill Street, Kovilpatti – 628 501, Tamilnadu.

 

 

Country :

India

 

 

Financials (as on) :

31.03.2009

 

 

Date of Incorporation :

09.04.1946

 

 

Com. Reg. No.:

18-1361

 

 

CIN No.:

[Company Identification No.]

L17111TN1946PLC001361

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MRIL00006G

 

 

Legal Form :

Public Limited Liability Company.  The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Cotton Yarn, Fabric, Hosiery Cloth, Caps, etc.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 3300000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. There appears some losses incurred by the company in 2008-2009. However the networth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported t be usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and condition.

 

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)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

21/4, Mill Street, Kovilpatti – 628 501, Tamilnadu, India.

Tel. No.:

91-44-2853 5111 / 4375 / 2858 8284

91-4632-220001

Fax No.:

91-44-2853 3852

E-Mail :

loyal@giasmd01.vsnl.net.in

loyal@vsnl.com

secretarial@loyaltextile.com

Website :

http://www.loyaltextiles.com

 

 

Corporate Office :

855, Anna Salai, Chennai - 600 002, Tamilnadu, India.

New No.83, 1st Main Road, R A Puram, Chennai - 600 028, Tamilnadu, India.

Tel. No.:

91-44-28535111 / 4375 / 28588284

Fax No.:

91-44-28533852

 

 

Division/ Unit :

Valli Textile Mills

N.Venkateswarapuram, N.Subbiahpuram, Sattur Post - 626 205. TamilNadu, India.

 

Loyal Super Fabrics

C-7-1, Sipcot Complex, Kudikadu, Cuddalore 607 005, TamilNadu, India.

 

Ginning Division
APIIC Industrial Park, Talladha, Khammam District, Andhra Pradesh, India.

 

Shri Chintamani Textile Mills (Private) Limited

Arasanur, Thirumancholai - 630 561, Sivagangai Taluk, Tamilnadu, India.

 

Menakur SEZ Park, Naidupettah, Nellore District, Andhra Pradesh. India.

 

 

Showroom :

Showroom No. 518, Apparel House, Industrial Area, Sector 44, Gurgaon- 122003, India.

 

 

Branches :

Located at :

 

v      Flat D2, 788, First Cross Street, Indira Nagar, Chennai - 600 020,Tamilnadu

 

v      Fourth Seaward Road, Valmiki Nagar, Tiruvanmiyur, Chennai - 600 041,  

       Tamilnadu

 

v      10, Greenways Road, Bishops Gardens, Chennai - 600 028, Tamilnadu

 

v      116 / 6, Theagaraya  Road, Chennai - 600 017, Tamilnadu

 

 

Overseas Office :

UK

Loyal Textiles (Uk) Limited,

Church Cottage, Main Street, Ingoldsby, Lincs. Ng33 4ej

 

Germany

Schaefer Loyal

Alter Postweg 101 D-86159, Germany

 

 

DIRECTORS

 

Name :

Mr. Manickam Ramaswami

Designation :

Chairman and Managing Director

Address :

Satyanarayana Avenue, Boat Club Road, Chennai - 600 028, Tamilnadu, India

Qualification :

B. Tech.

Date of Appointment :

01.06.1979

 

 

Name :

Mr. C. Nallakrishnan

Designation :

Director

 

 

Name :

Mr. K.J.M. Shetty (I.A.S. – Retd.)

Designation :

Director

 

 

Name :

Mr. S. Venkataramani

Designation :

Director

 

 

Name :

Mr. R. Poornalinggam (I.A.S. – Retd.)

Designation :

Director

 

 

Name :

Mr. Shridhar Subramanyam

Designation :

Director

 

 

Name :

Mr. P. Manivannan

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Ms. Deepa V Ramani

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2009

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

197,643

4.20

Bodies Corporate

3,231,334

68.69

Sub Total

3,428,977

72.90

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

3,428,977

72.90

(B) Public Shareholding

 

 

(1) Institutions

 

 

Financial Institutions / Banks

5,200

0.11

Sub Total

5,200

0.11

(2) Non-Institutions

 

 

Bodies Corporate

256,211

5.45

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 1 Million

830,185

17.65

Individual shareholders holding nominal share capital in excess of Rs.1 Million

146,043

3.10

Any Others (Specify)

37,330

0.79

Non Resident Indians

37,330

0.79

Sub Total

1,269,769

26.99

Total Public shareholding (B)

1,274,969

27.10

Total (A)+(B)

4,703,946

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

Total (A)+(B)+(C)

4,703,946

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Cotton Yarn, Fabric, Hosiery Cloth, Caps, etc.

 

 

Products :

Item Code No. (ITC Code)

Product Description

 

5202, 5203, 5204, 5205, 5206, 5207, 5208, 5209 5210, 5211, 5212, 5301, 5306, 5308, 5309, 5311, 5503, 5504, 5505, 5506, 5507, 5509 5510, 5511, 5512, 5513, 5514, 6001 6203, 6204

Textiles falling within the above Code Nos.

 

 

 

 

Exports :

 

Countries :
  • USA
  • Russia
  • Germany
  • Spain
  • Switzerland
  • UK
  • Portugal  
  • Sri Lanka
  • South Korea
  • Australia
  • Taiwan
  • Bangladesh
  • Hong Kong
  • Europe
  • Middle East
  • Japan
  •  Israel
  • Egypt
  • Thailand
  • Turkey

 

 

PRODUCTION STATUS

 

Particulars

 

Unit

Installed Capacity

Ring Spindles

 

Nos.

120.456

Rotors

 

Nos.

1.680

Automatic Looms

 

Nos.

0.256

Cloth Processing

 

Mtrs.

14400.000

Hosiery Processing

 

Kgs.

5400.000

Sewing Machines

 

Nos.

0.537

Knitting Machines

 

Nos.

0.095

 

 

 

Note: Licensed capacity not stated in view of abolition of licensing requirements as per notification No. 477 (E) 

          dated 25.07.1991 of Ministry, government of India.

 

 

 

 

Actual Production

 

Unit

Quantity

Yarn (2210316.27 Kgs Manufactured by outsiders) (Previous year 1368302.52 Kgs) of which 19682.20 kgs were processed (Previous year 16486 Kgs)

Kgs.

18.020

Cloth net of Shrinkage(including 1759873.00 mtrs by outsiders) (Previous year 1416026 mtrs) manufactured by others and NIL mtrs manufactured for others) of which 4393445.60 mtrs were processed (previous year 5014797.52 mtrs)

Mtrs.

26.911

Hosiery Cloth (including produced by others) of which 1261264.67 kgs were processed (Previous year 1193104.76 kgs.)

Kgs.

8.906

 

 

GENERAL INFORMATION

 

No. of Employees :

8000

 

 

Bankers :

v      Central Bank of India, Kovilpatti, Tamilnadu

v      Canara Bank

v      EXIM Bank

v      Indian Bank

v      State Bank of Mysore

v      State Bank of India, Chennai, Tamilnadu

v      HDFC Bank Limited, Chennai, Tamilnadu

v      Export Import Bank of India, Kovilpatti, Tamilnadu

v      Karur Vysya Bank Limited, Kovilpatti, Tamilnadu

 

 

Facilities :

Secured Loan

As on 31.03.2009

Term Loan

 

From Financial Institutions (including interest accrued thereon)

89.624

From Banks

2524.763

Working Capital Loans from Banks

1306.110

Total

3920.497

 

Notes:

Term loans are secured by Joint and equitable mortgage of all immovable properties, present and future, and by hypothecation of machineries ranking pari passu with one another.

 

Working Capital loans from Banks are secured by hypothecation of raw materials, stock in process, finished goods, stores, consumables, spares and book debts and are also secured by a second charge on block assets.

 

Guarantee:

Term loans and working capital loans are guaranteed by the Chairman and Managing Director.

 

Unsecured Loan

As on 31.03.2009

Fixed Deposits

3.974

Interest accrued and due on fixed deposits

0.245

Total

4.219

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Suri and Company

Chartered Accountants

Address :

Madurai

 

 

Associates/Subsidiaries :

v      Shri Teyem Processors Limited

v       Uniloyal Expotex Limited, Chennai, Tamilnadu

v      Loyal Dimco Grouppo S. A. , Greece

v      Shri Teyem Pricemill  Limited

v      Gruppo P and P Loyal Italy

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2009

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

8000000

Equity Share

Rs.10/- Each

Rs.80.000 millions

600000

Redeemable Cumulative Preference Shares

Rs.100/- each

Rs.60.000 millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

4703946

Equity Share

Rs.10/- Each

Rs. 47.040 millions

 

Note:

 

Equity Shares of the above

 

i)                     2769970 Equity Shares of Rs.10/- each were issued as fully paid up Bonus Shares by way of    

Capitalizing part of General Reserve.

 

ii)                   60000 Equity Shares of Rs.10/- each were issued as fully paid up shares pursuant to a scheme of

             Reorganisation of Capital Structure without the payment being received in Cash.

 

iii)                  1538266 Equity Shares of Rs.10/- each were issued as fully paid up shares pursuant to amalgamation of “Valli Cotton Traders Limited” and “Loyal Super Fabrics Limited”. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2009

31.03.2008

31.03.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

47.040

47.040

47.040

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

785.954

927.271

901.384

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

832.994

974.311

948.424

LOAN FUNDS

 

 

 

1] Secured Loans

3920.497

3751.022

3014.358

2] Unsecured Loans

4.219

5.169

7.574

TOTAL BORROWING

3924.716

3756.191

3021.932

DEFERRED TAX LIABILITIES

230.778

301.528

281.928

 

 

 

 

TOTAL

4988.488

5032.030

4252.284

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3041.521

3209.095

2539.878

Capital work-in-progress

13.870

110.280

352.437

 

 

 

 

INVESTMENT

18.019

18.629

19.258

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
920.857

830.231

697.165

 

Sundry Debtors
810.591

785.847

521.488

 

Cash & Bank Balances
17.635

32.991

35.325

 

Other Current Assets
91.347

134.606

61.703

 

Loans & Advances
407.819

392.753

359.450

Total Current Assets
2248.249

2176.428

1675.131

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
321.437

453.801

307.758

 

Provisions
11.734

28.601

26.662

Total Current Liabilities
333.171

482.402

334.420

Net Current Assets
1915.078

1694.026

1340.711

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

4988.488

5032.030

4252.284

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2009

31.03.2008

31.03.2007

 

 

 

 

Sales Turnover

4405.484

4087.115

3709.969

Other Income

18.886

55.739

56.404

Total Income

4424.370

4142.854

3766.373

 

 

 

 

Profit/(Loss) Before Tax

(210.097)

77.450

202.035

Provision for Taxation

351.414

30.100

73.500

Profit/(Loss) After Tax

(141.317)

47.350

128.535

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

2681.329

2588.573

2535.545

 

Other Earnings

0.000

7.243

61.989

Total Earnings

2681.329

2595.816

2597.534

 

 

 

 

Imports :

 

 

 

 

Raw Materials

568.259

287.059

256.216

 

Stores & Spares

158.631

402.910

292.624

 

Capital Goods

47.566

113.443

14.119

Total Imports

774.456

803.412

562.959

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

2074.605

1815.997

1652.639

 

Conversion and Processing Charges

198.033

146.727

164.685

 

Stores Consumed

213.515

183.916

184.405

 

Purchase of Item traded/ processed

413.212

422.012

220.841

 

Power & Fuel

304.219

326.991

347.245

 

Salaries, Wages, Bonus, etc.

240.695

218.508

191.593

 

Repairs & Maintenance

129.716

127.239

128.700

 

Interest

221.239

152.430

89.313

 

Other Expenditure

389.868

327.722

308.315

 

Depreciation & Amortization

453.187

422.595

328.671

 

Increase/(Decrease) in Finished Goods

(3.822)

(78.733)

(52.069)

Total Expenditure

4634.467

4065.404

3564.338

 

 

 

 

Earnings Per Share (Rs.)

(30.04)

10.07

27.32

 

 

QUARTERLY / RESULTS

 

PARTICULARS

 

30.06.2009

30.09.2009

31.12.2009

Type

1st Quarter

2nd Quarter

3rd Quarter

Gross Sales

935.900

1144.900

1147.400

Other Income

02.100

02.300

02.200

Total Income

938.000

1147.200

1149.600

Total Expenditure

820.600

1011.500

1007.800

PBIDT

117.400

135.700

141.800

Interest

67.300

56.800

51.300

PBDT

50.100

78.900

90.500

Depreciation

112.300

112.000

113.000

Tax

0.000

0.000

0.000

Deferred tax

(21.400)

(11.100)

(07.600)

Reported Profit after Tax

(40.800)

(22.000)

(14.900)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2009

31.03.2008

31.03.2007

PAT / Total Income

(%)

(3.19)

1.14

3.41

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(4.77)

1.89

5.44

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(3.97)

1.44

4.79

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.25)

0.08

0.21

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
5.11

4.35

3.54

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
6.75

4.51

5.00

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

As Per Web Details:

 

HISTORY:

 

Subject, the Tamilnadu based company was incorporated in 1946 and has it's plant at Kovilpatti. It manufactures cotton yarn, fabric, hosiery cloth, caps etc.It exports yarn and cloth to the US, Russia, Germany, Spain, Switzerland, UK, Portugal and other countries. The company exports around 27% of its production. Loyal Textiles was the first to introduce tandem carding in the early seventies, and the earliest to introduce air splicing and automatic cone winding technology, which allows sophisticated electronic controls to detect and mend defects in yarn automatically. The company undertook modernisation of it's facility. In 1987, the company has embarked upon an expansion-cum-modernisation project and set up 100 air-jet looms for weaving polyester-blended suitings. The looms were supplied by Loyal Machine Works, a subsidiary. Again in 1998-99, it increased the installed capacity of ring spindles, rotors and automatic looms to 53,492 nos, 3,768 nos and 285 nos respectively. The company has spent Rs.173.300 millions, Rs.53.900 millions and Rs.133.700 millions on modernisation and replacement of machinery during 1998-99, 99-2000 and 2000-01 respectively. The company had set up an Joint Venture company in Italy in the name of M/s Gruppo PandP Loyal Spa. In the year 2000-01, the company has increased it's stake in the JV company to 47.50 %. Apart from this the company has also entered into a JV agreement with M/s Dimco SA, Greece for formation of a JV company in Greece for marketing of Garments during 2000-01. For replacement of machinery/modernisation and installing power plant the company has spent about Rs.335.844 millions.

 

 

PERFORMANCE REVIEW, MANAGEMENT DISCUSSION, ANALYSIS REPORT AND OUTLOOK  FOR

THE CURRENT YEAR

 

The performance during the year was severely affected owing to the  following reasons, which resulted in the Company making  cash  profits but net losses:

 

a)    Shortage  of  power in Tamilnadu resulting in under utilization  of  the plant and also higher power cost due to  

       greater utilization of the  captive power plant.

 

(b)  Global  meltdown  resulting  in  steep  drop  in demand and  excess  supply, which adversely affected our unit 

       price realization.

 

(c)   High  volatility  in  the  forex  market;  the  Company  was   taking  forward   cover  against  confirmed   export

       contracts, but  some export  orders  were cancelled  forcing  us  to  liquidate  our  forward contracts at  a loss.

 

(d)   Rise  in  interest  rates  resulting  in  higher  financing  costs.

 

(e)   Delay in disbursal of TUFS subsidy and VAT refund resulting in blocking of funds-the company had to borrow 

       more leading to further interest burden.

 
 

While  power  shortage,  volatility  in the forex  market  and  the  global recession  continue to be areas of concern, Marginal improvement in  demand and  unit price realization coupled with the anticipated- reduction in  the interest  rates  give us the hope that the operating  performance  for  the current year would be better.

 

The  Company  has  an established adequate internal  control,  systems  and procedures commensurate with the size of its operations.

 

Industrial  relations  have  been  cordial  during  the year. The Company has  an  employee  strength  of  3100. 

 

Statement in the above Management Discussion and Analysis may be considered forward  -  looking  statements'  within the  meaning  of  the  applicable securities  laws  and regulations. Actual results could  differ  materially form  those  expressed  or implied. Important factors  that  could  make  a difference  to the Company's operations include raw  material  availability and prices, cyclical demand and pricing in the Company's principal markets, changes  in  Government  regulations, tax  regimes,  economic  developments within  India and the Countries in which the Company conducts its  business and other incidental factors.

 

TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

 

All  amounts which are due to be transferred to the Investor Education  and Protection  Fund are regularly monitored and transferred. During the  year, the  Company has transferred a sum of Rs. 374 Millions, being the amount  due and payable and remaining unpaid for a period of 7 years, as provided under Section  205C of the Companies Act, 1956 read with the  Investor  Education and  Protection Fund (awareness and protection of investors)  Rules,  2001. Members who have not encashed the Dividend warrants for the financial  year ended 2001-2002 and / or any subsequent years are requested to write to the Company with necessary details before 9.10.2009

 

 

EXPORTS

 

During  the  Year, the company exported goods to the  tune  of Rs.3032.0 Millions.

 

MODERNISATION

 

A  sum  of  Rs.146.3  Millions (Previous year Rs.799.4  Millions)  was  spent  on modernization/replacement  of  plant and machinery during  the  year.

 

 

Contingent Liabilities

                                                              Rs. In Millions      Rs. In Millions

On account of bills discounted

300.657

408.512

Counter Guarantee given to banks

8.338

0.936

Guarantee to a third Party

0.000

3.298

Claim against the company not acknowledged as debts

2.322

2.713

Disputed income tax demand not provided for- appeals filed before appellate authorities are pending.

24.200

24.200

Disputed Sales tax demand not provided for

2.945

2.240

Disputed Service tax not provided for

2.308

0.000

On account of export obligation covered by letter of undertaking

351.149

451.892

 

 

 

Company Profile:

 

Committed  to  philanthropy  and socio-environmental development, Loyal Group is a multi-faceted organization, providing  an array of products and services for textile and apparel industries. In more than its seven decades of establishment, the Group  has  created  several  benchmarks  and  established  milestones  for  the forthcoming generations.

Loyal Group comprises of two composite mills, one spinning mill, one dye house,  three  garment manufacturing units, one trading cum retailing company and two international trading companies (a Joint Venture with an Italian firm and a 100% owned trading company in United Kingdom). Besides, the Group has in its fold the 158-year-old watch trading company "P'orr & Sons", which has 8 operational stores in Tamil Nadu and Andhra Pradesh (India).

An   ISO  9002:2000   accredited, The  Loyal  Group  follows  a  strict  ethical  code  of  conducts  in  its  business operations. The  Group's  annual  turnover  is Rs.4,500 million  (US$ 110 Million), out  of  which,  Rs.3,000 million

 (US$ 75 Million) revenue was  generated from  exports. Loyal Group exports products to various countries which includes  Israel,  Egypt,  Turkey,  U S A,  EU  Countries,  United  kingdom,  Japan,  Thailand, South Korea, Dubai,

Sri Lanka, Bangladesh, Brazil, Argentina, Columbia.

In  recognition of its continual improvement in export performance,  the  Government of India has awarded Group with "Three Star Export House". Over the years, the  group has been credited with several accolades and awards in recognition of its consistent export performance

 

 

Fixed Assets:

 

  • Land
  • Buildings
  • Furniture
  • Plant and Machinery
  • Vehicles

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.45.38

UK Pound

1

Rs.72.71

Euro

1

Rs.61.15

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

46

 

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

-

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.