MIRA
INFORM REPORT
|
Report Date : |
06.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
PUDUMJEE PULP AND PAPER MILLS LIMITED |
|
|
|
|
Registered
Office : |
Theragaon, Pune – 411 033, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
19.11.1964 |
|
|
|
|
Com. Reg. No.: |
11-013058 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.82.000
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L21012MH1964PLC013058 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEP07501E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Sale of Paper like Opaque Laminating base Paper,
Kraft Paper and Glassine Paper. |
|
|
|
|
No. of Employees
: |
About 507 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4869000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track. General
financial position is good. 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. S.B. Vani |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-20-30613333 |
|
Date : |
05.07.2011 |
LOCATIONS
|
Registered Office/ Factory : |
Theragaon, Pune – 411 033, |
|
Tel. No.: |
91-20-30613333/ 27275381 |
|
Fax No.: |
91-20-27273294/ 30613388 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
65 Acres |
|
Location : |
Owned |
|
|
|
|
Corporate/ Sales Office : |
Jatia Chambers, 60, Dr. V.B. Gandhi Marg, Fort, Mumbai -
400 023, |
|
Tel. No.: |
91-22-30213333 |
|
Fax No.: |
91-22-22658316 |
|
E-Mail : |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. M.P. Jatia |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
79 Years |
|
Qualification : |
Experience in Business Administration and Finance |
|
Experience : |
54 Years |
|
Date of Appointment : |
01.03.1975 |
|
|
|
|
Name : |
Mr. V.O. Somani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. O.P. Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rusi N. Sethna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A.K. Jatia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V.P. Leekha |
|
Designation : |
Director (Technical) |
|
Date of Birth/Age : |
70 Years |
|
Qualification : |
B.E. (Mech.) |
|
Experience : |
47 Years |
|
Date of Appointment : |
07.03.2000 |
|
|
|
|
Name : |
Mr. S.K. Bansal |
|
Designation : |
Director (Finance) and Secretary |
|
Date of Birth/Age : |
50 Years |
|
Qualification : |
B.Com. ACA, ACS |
|
Experience : |
27 Years |
|
Date of Appointment : |
03.10.1984 |
|
|
|
|
Name : |
Mr. B.C. Dalal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S.B. Vani |
|
Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2,044,446 |
4.99 |
|
|
18,469,871 |
45.05 |
|
|
20,514,317 |
50.03 |
|
|
|
|
|
|
4,443,164 |
10.84 |
|
|
4,443,164 |
10.84 |
|
Total shareholding of Promoter and Promoter Group (A) |
24,957,481 |
60.87 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
8,500 |
0.02 |
|
|
1,870 |
- |
|
|
154,055 |
0.38 |
|
|
1,750 |
- |
|
|
166,175 |
0.41 |
|
|
|
|
|
|
1,941,822 |
4.74 |
|
|
|
|
|
|
10,173,955 |
24.81 |
|
|
3,344,365 |
8.16 |
|
|
416,202 |
1.02 |
|
|
416,202 |
1.02 |
|
|
15,876,344 |
38.72 |
|
Total Public shareholding (B) |
16,042,519 |
39.13 |
|
Total (A)+(B) |
41,000,000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
41,000,000 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Sale of Paper like Opaque Laminating base Paper,
Kraft Paper and Glassine Paper. |
||||||||||||
|
|
|
||||||||||||
|
Products : |
|
||||||||||||
|
|
|
||||||||||||
|
Terms : |
|
||||||||||||
|
Selling : |
L/C, Cash and Credit |
||||||||||||
|
|
|
||||||||||||
|
Purchasing : |
L/C, Cash and Credit |
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Licensed
Capacity |
Installed
Capacity |
|
Paper |
Not Applicable (Delicenced) |
42,500 MT |
|
|
|
|
|
Particulars |
Actual
Production |
|
Paper |
34613 MT |
|
Pulp |
16686 MT |
|
(Includes processed for others) |
11394 MT |
|
|
|
GENERAL INFORMATION
|
Customers : |
Wholesalers and Seller |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
About 507 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
v
State Bank of v
Axis Bank v
IDBI Bank Limited v
Bank of v
The Hongkong and Shanghai Banking Corporation
Limited |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Note: * Security
: First charge on all immoveable and moveable properties of the Company, both
present and future subject, however, to the prior charges created and / or to
be created by the Company on its (i) moveables specifically hypothecated and
(ii) other movables and book debts in favour of its bankers for securing
borrowings for working capital and deferred payment guarantees. All these
loans shall rank pari passu with the existing and future first charges
created in favour of Financial Institutions and Banks. ** Security: Prior charge as aforesaid and a second charge on
immovables.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Khare and Company Chartered Accountants |
|
Address : |
Mumbai, |
|
|
|
|
Solicitors : |
Kanga and Company |
|
|
|
|
Subsidiary Company : |
v
Pudumjee Investment and Finance Company Limited |
|
|
|
|
Associate Firms / Companies : |
v
Pudumjee-G : Corp Developers v
Prime Developers v
Pudumjee Industries
Limited v
Pudumjee Plant Laboratories Limited v
Pudumjee Hygiene Products Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
47500000 |
Equity Shares |
Rs.2/-each * |
Rs.95.000 millions |
|
50000 |
14% (free of
company’s tax but subject to deduction of tax at source at the prescribed
rates) Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.5.000 millions |
|
|
Total |
|
Rs.100.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
41000000 |
Equity Shares of |
Rs.2/- each
* |
Rs.82.000
millions |
|
|
|
|
|
Of the above, 9,25,000
Equity shares of Rs.2/-each were allotted as fully paid up for consideration
other than cash and 2,90,00,000 equity shares of Rs.2/-each were allotted as
fully paid up Bonus shares issued by way of utilisation of Rs.41.000 millions
from share premium account and Rs.17.000 millions from General Reserve.
* During the year
each equity share of face value of Rs.10 was sub divided in to 5 Equity Shares
of face value of Rs.2 each.
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 |
82.000 |
82.000 |
82.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1135.237 |
1063.021 |
952.107 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1217.237 |
1145.021 |
1034.107 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
317.846 |
356.280 |
548.026 |
|
|
2] Unsecured Loans |
364.408 |
164.366 |
273.789 |
|
|
TOTAL BORROWING |
682.254 |
520.646 |
821.815 |
|
|
DEFERRED TAX LIABILITIES |
213.900 |
231.700 |
242.600 |
|
|
|
|
|
|
|
|
TOTAL |
2113.391 |
1897.367 |
2180.522 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1106.265 |
1187.813 |
1249.124 |
|
|
Capital work-in-progress |
1.940 |
12.041 |
23.588 |
|
|
|
|
|
|
|
|
INVESTMENT |
124.299 |
24.277 |
24.277 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
316.530
|
321.946 |
457.383
|
|
|
Sundry Debtors |
307.886
|
269.081 |
314.941
|
|
|
Cash & Bank Balances |
19.021
|
10.258 |
27.235
|
|
|
Other Current Assets |
0.000
|
0.000 |
52.540
|
|
|
Loans & Advances |
626.046
|
376.547 |
434.092
|
|
Total
Current Assets |
1269.483
|
977.832 |
1286.191 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
146.506 |
|
343.563
|
|
|
Other Current Liabilities |
158.422
|
87.780 |
|
|
|
Provisions |
83.668
|
65.770 |
60.904
|
|
Total
Current Liabilities |
388.596
|
304.596 |
404.467 |
|
|
Net Current Assets |
880.887
|
673.236 |
881.724
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
1.809 |
|
|
|
|
|
|
|
|
TOTAL |
2113.391 |
1897.367 |
2180.522 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Income from Operation (Net) |
2179.963 |
2203.003 |
2194.709 |
|
|
|
Other Income |
6.424 |
5.814 |
7.377 |
|
|
|
TOTAL (A) |
2186.387 |
2208.817 |
2202.086 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing & Other Expenses |
1842.069 |
1712.811 |
1986.441 |
|
|
|
Trade purchases |
30.888 |
271.616 |
|
|
|
|
Net Foreign Exchange Loss / (Gain) |
(10.379) |
26.708 |
|
|
|
|
Increase/ (Decrease) in Stock |
53.435 |
(2.699) |
|
|
|
|
V.R.S. compensation (to the extent written off) |
0.000 |
1.809 |
|
|
|
|
TOTAL (B) |
1916.013 |
2010.245 |
1986.441 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
270.374 |
198.572 |
215.645 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
15.084 |
36.614 |
54.429 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
255.290 |
161.958 |
161.216 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
101.494 |
100.387 |
95.985 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
153.796 |
61.571 |
65.231 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
51.000 |
19.500 |
18.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
102.796 |
42.071 |
46.931 |
|
|
|
|
|
|
|
|
|
|
Net Credits/
(Debits) of earlier years |
-- |
-- |
(0.120) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
209.996 |
199.917 |
184.618 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares
(Free of Tax) |
12.300 |
10.250 |
9.840 |
|
|
|
Tax on Proposed Dividend |
2.043 |
1.742 |
1.672 |
|
|
|
Transfer to General Reserve |
50.000 |
20.000 |
20.000 |
|
|
BALANCE CARRIED
TO THE B/S |
248.449 |
209.996 |
199.917 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4.674 |
23.352 |
NA |
|
|
|
Deemed Exports |
77.483 |
65.107 |
NA |
|
|
TOTAL EARNINGS |
82.157 |
88.459 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Material |
577.419 |
432.760 |
NA |
|
|
|
Components & Spare Parts |
45.125 |
19.699 |
NA |
|
|
|
Capital Goods |
0.000 |
2.327 |
NA |
|
|
|
Goods for resale |
30.833 |
11.650 |
NA |
|
|
TOTAL IMPORTS |
653.377 |
466.436 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
2.51 |
1.03 |
5.72 |
|
|
|
- Diluted |
1.96 |
0.82 |
4.55 |
|
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 |
627.600 |
507.500 |
524.200 |
607.500 |
|
Total Expenditure |
555.800 |
445.300 |
498.200 |
583.000 |
|
PBIDT (Excl OI) |
71.800 |
62.200 |
26.000 |
24.500 |
|
Other Income |
0.700 |
5.000 |
0.500 |
1.900 |
|
Operating Profit |
72.500 |
67.200 |
26.500 |
26.400 |
|
Interest |
4.400 |
0.100 |
0.100 |
0.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
68.100 |
67.100 |
26.400 |
26.400 |
|
Depreciation |
25.500 |
25.600 |
17.700 |
17.900 |
|
Profit Before Tax |
42.600 |
41.500 |
8.700 |
8.500 |
|
Tax |
12.600 |
11.200 |
(1.300) |
(2.300) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
30.000 |
30.300 |
10.000 |
10.800 |
|
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 |
30.000 |
30.300 |
10.000 |
10.800 |
|
Particulars |
|
|
31.03.2011 |
|
Sales Turnover (Approximately) |
|
|
2260.000 |
|
|
|
|
|
The above information has been parted by Mr. S.B. Vani (Accounts
Manager).
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.70
|
1.90 |
2.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.05
|
2.79 |
2.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.47
|
2.84 |
2.57 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.05 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.88
|
0.72 |
1.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.27
|
3.21 |
3.18 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors |
146.506 |
151.046 |
NA |
|
|
|
|
|
HISTORY:
Subject incorporated in November
1964 is into manufacture of all varieties of paper, paper boards, paper
products and cellulose pulp. N P Jatia along with persons acting in concert
holds 51.52% in PPPM as on December 1, 2003.
Company which started manufacturing operations at Thergoan, Pune, in Jan.'68,
with an installed capacity of 6000 tpa, now produces 22,000 tpa of speciality
paper.
For the first time in
Company has evolved a technology for cleaner manufacture of pulp from bagasse
which is the main raw material. This method is solvent-based and has been
patented as the PUNEC (Pudumjee non-wood ethanol cellulose) process.
The company has installed an imported second hand paper making machinery during
the year 1997-98. Further in 1998-99 the tissue making machine and power plant
commenced commercial production. With the view of reducing cost of raw
material, the company has installed during the year 1999-2000, waste paper
recycling plant of capacity of 75 tonnes per day.
In 1988, the company set up a waste-water treatment plant which reduces the
impurities in the waste water while generating as a by-product, methane which
is used as a substitute fuel in the boilers.
In recognition of the work done on treatment of waste water, the company has
been selected as a model unit by the United Nations Environmental Programme.
The British Standards Institution has granted the company certificate under ISO
14001, in view of the commitment of the company to environmental
protection.
Company subsidiaries are Pudumjee
Investment and Finance and Gresham Investment and Finance.
OPERATIONS
The Company has
had a good performance in the year in terms of its profitability. As stated
above, the profit before tax was Rs.153.796 millions compared to Rs.61.571
millions which is 150% growth over the previous year. This was due to adoption
of strategic planning of manufacturing the right product mix coupled with
favourable cost of certain inputs. The sale of finished paper has also recorded
a growth of approximate 12% compared to the previous year. All this has been
possible as a result of substantial investments made in previous years for
upgradation, modernization and increasing the manufacturing capacities.
Pudumjee G:Corp
Developers in which the Company is a partner has commenced the construction of
residential project and its 1st Phase has been formally launched. The response
during the soft launch has been encouraging and so far over 60% of the flats
have been booked. The entire project is expected to be completed in 3 phases involving
construction and sale of over 650 luxurious flats of 2 BHK and 3 BHK with an
aggregate saleable area of 9,30,000 sq.ft. (approximately). All the 3 phases of
this project are expected to be completed during the next 5 years and are
expected to generate a net revenue of about Rs.700.000 millions barring
unforeseen circumstances.
The labour
relations in the Company remained peaceful.
64 Fixed Deposits
amounting to Rs.1.775 millions which had matured for payment as at the close of
31st March, 2010 were not claimed by the deposit holders. Out of
this amount 16 deposits of the value of Rs.0.490 million have been claimed upto
19th May, 2010.
MANAGEMENT
DISCUSSION AND ANALYSIS:
The Company mainly
operates in specialty paper segment. It continuously updates its product mix
and reduces cost to meet challenges emanating from unfair competition from
imports so as to improve margins. The Company has also been able to manufacture
and supply high quality of paper in writing and printing segment, utilizing the
increased available capacity. Substantial quantities of such paper has also
been used by well known Companies for their Annual Reports. Judicious choice of
Product mix, raw material and lower input cost have helped to improve overall
performance.
The Concern of
current trend of higher raw material and fuel prices is being addressed by
further optimization of raw materials and product mix and out look appears to
have consistent performance.
Due to rapid
expansion of
The Real Estate
business being carried out by the Company in Partnership involving construction
and sale of over 650 mid size luxurious flats aggregating about 9,30,000 sq.ft.
in 3 phases at Thergaon, Pune is in progress. This project has received a good
response as from its first phase which has just launched, 115 out of 176
apartments have already been booked.
All 3 phases of
this project are expected to be completed during the next 5 years. .
The existing
internal controls of the Company are periodically reviewed by the Audit
Committee and are considered quite adequate.
The Company employs about 507 employees and Company’s relations with the
labour remained cordial.
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
|
Particulars |
31.03.2010 (Rs. in
millions) |
|
i) Bank
Guarantees and Letters of Credit in favour of suppliers of raw materials,
spares etc.* |
75.924 |
|
ii) Guarantee for other Companies * |
16.165 |
|
iii) Claims against
the Company not acknowledged as debts for excise duty, property tax and
commercial claims etc. ** |
63.993 |
* Will not affect
the future Profitability.
** May affect the future profitability to the extent indicated, if such liabilities
crystallise.
FIXED ASSETS:
v
Land
v
Building
v
Expenditure for Dam, Weir etc.
v
Machinery
v
Laboratory Equipments
v
Furniture and Fixtures
v Vehicles
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.44.50 |
|
|
1 |
Rs.71.25 |
|
Euro |
1 |
Rs.64.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--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.