MIRA INFORM REPORT

 

 

Report Date :

04.07.2011

 

IDENTIFICATION DETAILS

 

Name :

RAMA PULP AND PAPERS LIMITED

 

 

Registered Office :

Nath House, Nath Road, Aurangabad – 431005, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

09.07.1980

 

 

Com. Reg. No.:

11-022820

 

 

Capital Investment/ Paid-up Capital:

Rs.77.500 millions

 

 

CIN No.:

[Company Identification No.]

L21010MH1980PLC022820

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR14611C

 

 

PAN No.:

[Permanent Account No.]

AAACR7243K

 

 

Legal Form :

Public Limited Liability Company. Company’s Shares are listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Industrial Papers.

 

 

No. of Employees:

Approximately 400 (In Office)

 

 

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 1300000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed 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.

 

INFORMATION PARTED BY

 

Name :

Mr. Amol

Designation :

Account Manager

Contact No.:

91-9374992144

Date :

02.06.2011

 

 

LOCATIONS

 

Registered Office :

Nath House, Nath Road, Aurangabad – 431 005, Maharashtra, India

Tel. No.:

91-240-2376313/ 14/  15/ 16/17/  2376764

Mobile No.:

91-9374992144 (Mr. Amol)

Fax No.:

91-240-2376318

E-Mail :

ap_deo@yahoo.com.uk

apdeo@ramapulp.com

Website:

http://www.ramapulpnpapers.com

Area:

2000 sq.ft. (Owned)

 

 

Head /Administrative Office :

1, Chateau Windsor, 86, Veer Nariman Road, Churchgate, Mumbai 400 020, Maharashtra, India

Tel. No.:

91-22-22875653/ 54/ 55/ 22854937

Fax No.:

91-22-22875652

Area:

1500 sq.ft. (Rented)

E mail:

sanjayd@nathgroup.com

anilsharma@nathgroup.com

nathbom@boll.net.in

 

 

Factory :

Plot No. 293 - 296, G.I.D.C, Phase II, Vapi - 396 195, Gujarat, India

Tel No.:

91-260-3296710

Area:

40000 sq.mt. (Leased)

 

 

DIRECTORS

 

As on 30.09.2010

 

Name :

Mr. Mahesh Mehta

Designation :

Director

Address:

1, Chatue, Windsor, 86 Veer Nariman Road, Church Gate, Mumbai-400020, Maharashtra, India

Date of Birth/ Age:

20.09.1952

Date of Appointment:

21.10.1997

 

 

Name :

Mr. Akhilesh K. Sharma

Designation :

Director

Address:

104, A Block Bhanubhakti, Near Haria Hsopital, Vapi-396195, Gujarat, India

Date of Birth/ Age:

24.04.1955

Date of Appointment:

30.09.2003

 

 

Name :

Mr. Ramniklal Salgia

Designation :

Director

Address:

603 B, Karishama Bhatt Lane, Poisar, Kandivali (West), Mumbai-400057, Maharashtra, India

Date of Birth/ Age:

13.12.1952

Date of Appointment:

31.07.2009

DIN No.:

02704031

 

KEY EXECUTIVES

 

Name :

Mr. Amol

Designation :

Account Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Category of Shareholder

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Bodies Corporate

2,124,059

19.31

Sub Total

2,124,059

19.31

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

2,124,059

19.31

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

15,400

0.14

Sub Total

15,400

0.14

(2) Non-Institutions

 

 

Bodies Corporate

3,903,085

35.48

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

3,674,520

33.40

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1,044,878

9.50

Any Others (Specify)

238,058

2.16

Clearing Members

18,108

0.16

Non Resident Indians

219,950

2.00

Sub Total

8,860,541

80.55

Total Public shareholding (B)

8,875,941

80.69

Total (A)+(B)

11,000,000

100.00

© Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

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

11,000,000

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Industrial Papers.

 

 

Products:

Product Description

ITC Code

Industrial Paper

4804.29

Poster Paper

4804.11

 

 

Exports :

 

Products :

Industrial Papers

Countries :
  • Saudi Arabia
  • Srilanka
  • Some African Countries

 

 

Imports :

 

Products :

Waste Paper

Countries :
  • USA
  • Germany
  • Saudi Arabia

 

 

Terms :

 

Selling :

L/c and Credit

 

 

Purchasing :

L/c and Credit

 

 

 

PRODUCTION STATUS AS ON (31.03.2010)

 

Particulars

Unit

 

Installed Capacity

Actual Production

Wiring Printing Papers,  Carbon Base tissue, Napkin and Other Speciality Papers

MT

 

23250.000

6806.121

 

 

GENERAL INFORMATION

 

No. of Employees :

Approximately 400 (In Office)

 

 

Bankers :
  • Axis Bank Limited, Universal Insurance Building, 1st Floor, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra, India
  • HDFC Bank
  • State Bank of Patiala, Wodehouse Road Branch, 37, Lalit Building, Nathalal Parikh Marg, Colaba, Mumbai-400001, Maharashtra, India

 

 

Facilities :

Secured Loans :

 

As on 31.03.2010

Rs. in Millions

As on 31.03.2009

Rs. in Millions

Vehicle Loan from HDFC Bank

0.563

0.829

Total

0.563

0.829

 

 

Unsecured Loans :

As on 31.03.2010

Rs. in Millions

As on 31.03.2009

Rs. in Millions

Trade Deposits

1.437

1.837

Loans from Others

26.310

33.079

Deferred Sales Tax Loan

0.000

0.000

Total

27.747

34.916

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

N.R. Agrawal and Company

Chartered Accountants

Address:

D-305, New Link Road, Andheri West, Mumbai-400058, Maharashtra, India

 

 

Group Companies:
  • Nathani Paper Mills Limited, Vapi
  • Nath Pulp and Paper Limited, Aurangabad

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

12500000

Equity Shares

Rs.10/- each

Rs.125.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

11000000

Equity Shares

Rs.10/- each

Rs. 110.000 Millions

 

 

 

As on 30.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

12500000

Equity Shares

Rs.10/- each

Rs.125.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

8750000

Equity Shares

Rs.10/- each

Rs.87.500 millions

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

12500000

Equity Shares

Rs.10/- each

Rs.125.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

7750000

Equity Shares

Rs.10/- each

Rs.77.500 millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

77.500

77.500

77.500

2] Application Money for Warrants

33.750

5.625

0.000

3] Reserves & Surplus

201.444

191.580

175.807

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

312.694

274.705

253.307

LOAN FUNDS

 

 

 

1] Secured Loans

0.563

0.829

0.000

2] Unsecured Loans

27.747

34.916

38.529

TOTAL BORROWING

28.310

35.745

38.529

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

341.004

310.450

291.836

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

139.392

153.890

153.405

Capital work-in-progress

11.130

0.048

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

17.890

32.040

39.473

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
29.634
16.663

24.162

 

Sundry Debtors
83.239
79.968

80.494

 

Cash & Bank Balances
30.650
11.200

1.090

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
59.640
49.960

42.467

Total Current Assets
203.163
157.791

148.213

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
13.849
20.677

23.412

 

Other Current Liabilities
10.425
11.290

15.215

 

Provisions
6.297
1.352

10.628

Total Current Liabilities
30.571
33.319

49.255

Net Current Assets
172.592
124.472

98.958

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

341.004

310.450

291.836

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

449.289

504.486

383.566

 

 

Other Income

63.231

73.252

79.406

 

 

TOTAL                                     (A)

512.520

577.738

462.972

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumption

129.985

148.637

89.086

 

 

Purchase of Materials for Trading

187.023

144.685

103.769

 

 

Purchase of Chemicals for Trading

33.506

142.863

91.761

 

 

Excise Duty

2.239

2.726

10.908

 

 

Purchase of Raw Material For Trading

0.000

0.000

10.950

 

 

Employee Cost

10.328

10.364

8.475

 

 

Operating Expenses

105.650

95.503

90.946

 

 

Other Expenses

4.627

4.982

4.501

 

 

Increase/ Decrease in stock

[7.741]

[1.821]

5.113

 

 

Prior Year Expenses

0.756

0.279

0.101

 

 

TOTAL                                     (B)

466.373

548.218

415.610

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

46.147

29.520

47.362

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1.246

2.325

2.497

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

44.901

27.195

44.865

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

8.072

5.654

4.755

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

36.829

21.541

40.110

 

 

 

 

 

Less

TAX                                                                  (H)

14.149

7.476

[34.537]

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

22.680

14.065

74.647

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

80.907

57.417

2.023

Add

Reversal of Provision of tax previous year

0.000

4.892

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

5.000

0.000

14.500

 

 

Proposed Dividend

4.375

[3.875]

3.875

 

 

Tax on Dividend

0.744

[0.659]

0.878

 

BALANCE CARRIED TO THE B/S

93.468

80.908

 

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

37.215

52.689

NA

 

TOTAL EARNINGS

37.215

52.689

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Material

87.047

64.904

NA

 

TOTAL IMPORTS

87.047

64.904

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

2.93

2.45

4.54

 

Diluted

2.60

2.17

4.54

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

127.440

162.600

167.960

201.510

Total Expenditure

116.630

150.310

159.040

194.700

PBIDT (Excl OI)

10.810

12.290

8.920

6.810

Other Income

1.280

2.860

0.670

2.690

Operating Profit

12.090

15.150

9.590

9.500

Interest

0.180

0.410

0.990

0.710

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

11.910

14.740

8.600

8.790

Depreciation

1.690

2.350

2.020

1.250

Profit Before Tax

10.230

12.400

6.580

7.540

Tax

0.000

0.000

0.000

0.000

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

10.230

12.400

6.580

7.540

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

10.230

12.400

6.580

7.540

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.43

2.43

16.12

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
8.20

4.27

10.46

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
10.75

6.91

13.30

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.12

0.08

0.16

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.19

0.25

0.35

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
6.65

4.74

3.01

 

 

PARTICULARS

 

 

31.03.2009

31.03.2008

31.03.2007

PAT / Total Income

(%)
2.43

16.12

(9.68)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
6.91

13.30

20.20

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.08

0.16

0.29

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.25

0.35

0.44

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
4.74

3.01

2.67

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS

 

(Rs. in Millions)

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors

13.849

20.677

23.412

 

 

 

Trade References:

 

·         Air Paper India Private Limited, Mumbai

·         Newtech Industries, Daman

 

HISTORY:

 

Incorporated in 1980 as a private limited company, Rama Pulp and Papers became a public limited company in 1983. The company put up its plant at Vapi, Gujarat, to manufacture industrial papers with an installed capacity of 10,000 tpa. The main products of the company, M G kraft and crepe paper, enjoy a wide market in the packaging industry. It is a substitute for costlier traditional packaging material like jute bags, etc, for packing of cement, sugar, fertilisers, polystyrene pellets, minerals, gums, animal food, motors, etc. In 1986, the company expanded its capacity to 17,000 tonnes of kraft paper. In addition, it diversified its activities to produce new value-added products such as low-grammage kraft paper, coated abrasive paper and high-burst sack kraft paper. In 1989, the company proposed to establish another company called Rama Techno Paper and Allied Industries at its existing premises at Vapi. The company expanded its product base to include blue match paper used in match boxes and hard tissue paper which is used for carbon paper, bidi, ciggarette wrappers, tracing paper, kites and colour tissues used in decoration. The company is heading towards a total capacity of 25,300 tpa for value-added papers and 18,000 tpa for kraft paper. The company has now been taken over by Nath Pulp, the flagship of the Nath group. The proposed amalgamation is to enable pooling of resources of both companies to face competition better.

 

REVIEW OF OPERATIONS:

 

During the year, the paper industry has come back on a resurgene path and the company was able to benefit. Despite the persistent increase in the cost of raw material, coal, exchange rate difference, the company had improved the level  of performance achieved during the years.

 

During the year the company has recorded Net Profit of Rs. 36.800 Millions. Though the sales turnover has shown some slight decrease over the corresponding period ended 31st March 20098, the profit margin has increased.

 

Future Plans:

 

The company is poised for a sustained organic as well as inorganic growth. On the organic growth from company proposes to increase the capacity of its speciality Grade papers by 10000 MTs by putting up a new state-of the art paper machine in order to cater to the growing export demand created by companies like Wall Mart etc.

 

As far as inorganic growth is concerned, company proposes to install a power generation plant of 52 MW capacity in two phases. The total outlay for this project is estimated to be of Rs. 2100.000 Millions. In the first phase, it is proposed to install a 12 MW Power Plant with a total outlay of Rs. 500.000 Millions and in the second phase 40 MW Power Plant for an estimated cost of Rs. 1600.000 Millions.

 

In addition, the company proposes to enter into the manufacturing of Sulphur based products such as Sulphur Di- Oxide (SO2) and Sulphur Tri-Oxide (SO3). Being a refrigeration agent, Sulphur Di-oxide (S02) has good demand, particularly as replacement of Freon gas, which is hazardous to ozone layer and the environment, Sulphur Tri-Oxide (SO3) will be utilized to manufacture Linear Alkyl Benzene Sulphonic Acid (LABSA), which is the main raw material for making all detergents.

 

The process o manufacturing SO2 and SO3 produces lot of heat, energy and steam, which the company requires for its captive consumption. The high pressure steam, which comes out of the proess of manufacturing sulphur based products, can be utilized to generate power and then the reduced pressure steam will be utilized toe manufacturer paper. This will substantially reduce the manufacturing cost of paper.

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2010

(Rs, in Millions)

31.03.2009

(Rs. in millions)

Claims against the Company not acknowledged as debts hence not provided

 

 

i) Demand Notice from Gujarat Electricity Board (GEB) #

0.000

1.463

ii) Central Excise Demands

0.000

0.300

iii) Suits filed by creditors

0.042

0.475

iv) Company has given a corporate guarantee of Rs. 336.000 Millions to Asset Reconstruction Company of India Limited for Nath Pulp and Papers Mills Limited for restructuring package agreed between NPPML and ARCIL

336.000

0.000

v) Income Tax Liability for the A.Y. 2007-08 which the company has disputed and appeal against which is pending before CIT (A)

8.032

0.000

 

# Stay against the demand has been obtained and suits are filed with Civil court-Pardi (Gujarat)

 

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

L21010MH1980PLC022820

Name of the company

RAMA PULP AND PAPERS LIMITED

Address of the registered office or of the principal place of  business in India of the company

Nath House, Nath Road, Aurangabad – 431 005, Maharashtra, India

This form is for

Creation of Charge

Type of charge

Immovable Property

Any Interest in immovable property

Book Debts

Movable Property

Particular of charge holder

State Bank of Patiala, Wodehouse Road Branch, 37, Lalit Building, Nathalal Parikh Marg, Colaba, Mumbai-400001, Maharashtra, India

Nature of instrument creating charge

Agreement of hypothecation of Goods and Assets

Sanction Letter Dated 06.04.2010

Date of instrument Creating the charge

10.07.2010

Amount secured by the charge

Rs. 89.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

As per the agreement

 

Terms of Repayment

As per the agreement

 

Margin

As per the agreement

 

Extent and Operation of the charge

As per the agreement

 

Others

As per the agreement

Short particulars of the property charged

All right, title and interest of the company in property bearing Industrial Plot No. 293/296/2P, admeasuring abour 23409.00 square meters and construction made thereon in Vapi Industrial Area.

All the present and future stocks and book-debts and all other movable and immovable assets of the company.

Hypothecation of all plant and machineries.

 

FIXED ASSETS:

 

  • Freehold Land
  • Leasehold Land
  • Building
  • Plant and Machinery
  • Furniture and Fixtures
  • 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.44.59

UK Pound

1

Rs.71.75

Euro

1

Rs.64.80

 

 

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

NO

--AFFILIATION

YES/NO

NO

--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.