MIRA INFORM REPORT

 

 

Report Date :

12.07.2011

 

IDENTIFICATION DETAILS

 

Name :

GARWARE WALL ROPES LIMITED

 

 

Registered Office :

Plot No. 11, Block D-1 MIDC, Chinchwad, Pune-411019, Maharashtra 

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

01.04.1976

 

 

Com. Reg. No.:

11-018939

 

 

Paid up Capital :

Rs.237.083 Millions

 

 

CIN No.:

[Company Identification No.]

L25209MH1976PLC018939

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMG08397E

MUMG08396D

 

 

PAN No.:

[Permanent Account No.]

AAACG1377P 

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer and Exporter of Synthetic Cordage and Netting. 

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 8600000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having fine track. General financial position is good. Trade relations are reported as fair. Payments are reported to be regular and as per commitments.

 

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

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Sahu

Designation :

Accounts Department

 

 

LOCATIONS

 

Registered Office :

Plot No. 11, Block D-1 MIDC, Chinchwad, Pune-411019, Maharashtra, India

Tel. No.:

91-20-30780000/30780195

Fax No.:

91-20-30780350

E-Mail :

sales@garwareropes.com

secretarial@garwareropes.com

 

 

Factory:

Located At:

 

  • Pune, Maharashtra, India
  • Wai, Maharashtra, India

 

 

DIRECTORS

 

As on 18.09.2010

 

Name :

Mr. Ramesh B. Garware

Designation :

Director

Address :

Garware Farm, NDA Road, Khadakwasla, Pune-411023, Maharashtra, India

Date of Birth/Age :

14.10.1940

Date of Appointment :

01.11.2006

 

 

Name :

Mr. Shripad M. Kuvelker

Designation :

Director

Address :

111-B, Paradise Apartment, 44 Nepean Sea Road, Mumbai-400036, Maharashtra, India

Date of Birth/Age :

15.02.1935

Date of Appointment :

29.06.1977

 

 

Name :

Mr. Vinayak B Lele

Designation :

Director

Address :

15 Longford St, Roseville NSW-2069, Australia

Date of Birth/Age :

05.01.1946

Date of Appointment :

25.05.1993

 

 

Name :

Mr. Ramesh M Telang

Designation :

Director

Address :

122/2 Om Radha Kunj, Opposite Kamla Nehru Park, Pune-411004, Maharashtra, India

Date of Birth/Age :

04.04.1942

Date of Appointment :

01.07.1989

 

 

Name :

Mr. Suresh N Talwar

Designation :

Director

Address :

10 Shiv Shanti Bhuvan, 146 Maharshi Karve Road, Churchgate Reclamation, Mumbai-400020, Maharashtra, India

Date of Birth/Age :

21.11.1937

Date of Appointment :

04.09.2010

 

 

Name :

Mr. Vayu R Garware

Designation :

Director

Address :

Ramesh Garware Farm, NDA Road, P.B. No. 3, Khadakwasla, Pune-411023, Maharashtra, India

Date of Birth/Age :

18.02.1972

Date of Appointment :

01.12.1995

 

 

Name :

Mr. Shrikant P Kulkarni

Designation :

Director

Address :

44 Vijaynagar Colony, Pune-411030, Maharashtra, India

Date of Birth/Age :

14.08.1949

Date of Appointment :

21.07.2007

 

 

Name :

Ms. Diya Garware Ibanez

Designation :

Director

Address :

Ramesh Garware Farm, NDA Road, P.B. No. 3, Khadakwasla, Pune-411023, Maharashtra, India

Date of Birth/Age :

25.09.1970

Date of Appointment :

25.01.2008

 

 

KEY EXECUTIVES

 

Name :

Mr. Anil S Wagle

Designation :

Secretary

Address :

Gananjay Co-Operative Society, Anand Building, Plot 19, Flat 2/3, Azadnagar, Kothrud Pune-411038, Maharashtra, India

Date of Birth/Age :

09.07.1952

Date of Appointment :

01.11.2002

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

Total No. of Shares

Total Shareholding as a % of total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

1,456,672

6.14

Bodies Corporate

9,588,137

40.44

Sub Total

11,044,809

46.59

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

11,044,809

46.59

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

1,300

0.01

Financial Institutions / Banks

21,547

0.09

Insurance Companies

1,441,750

6.08

Foreign Institutional Investors

1,415,650

5.97

Sub Total

2,880,247

12.15

(2) Non-Institutions

 

 

Bodies Corporate

1,274,798

5.38

Individuals

 

 

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

5,213,265

21.99

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

2,114,029

8.92

Any Others (Specify)

1,181,202

4.98

Non Resident Indians

183,202

0.77

Trusts

998,000

4.21

Sub Total

9,783,294

41.27

Total Public shareholding (B)

12,663,541

53.41

Total (A)+(B)

23,708,350

100.00

(C) 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)

23,708,350

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Synthetic Cordage and Netting. 

 

 

Products :

Product Description

Item Code

Ropes and Twine

5607.49

PPMF Yarn

5402.59

Fishnets

5608.11

 

 

GENERAL INFORMATION

 

Bankers :

Bank of India Limited, 1162/6, Shivajinagar, University Road, Pune-411005, Maharashtra, India

 

 

Facilities :

Secured Loan

As on 31.03.2010

(Rs. in Millions)

As on 31.03.2009

(Rs. in Millions)

Royal Bank of Scotland N.V.

Repayable within one year Rs Nil Millions , (Previous Year Rs. 50.000 Millions ) Secured by way of hypothecation of the whole of the Plant and  Machinery including its moveable Plant and  Machinery. Machinery Spares. Tools and Accessories, both present and  future on first charge pari-passu basis.

0.000

50.000

ClTl Bank Rupee Loan

Repayable within one year Rs 31.496 Millions , (Previous Year Rs. 3 1.496 Millions ) Secured by way of hypothecation of the whole of the Plant and  Machinery including its moveable Plant and  Machinery, Machinery Spares, Tools and Accessories, both present and  future on first charge pari-passu basis.

94.488

125.984

IDBI Bank Term Loan under Tuff

Repayable within one year Rs. 21.080 Millions , (Previous Year Rs. 15.810 Millions ) Secured by an exclusive charge on specific assets financed by the bank.

89.590

105.400

Cash Credit, Rupee Loan and Rupee Packing Credit

516.244

601.859

Packing Credit in Foreign Currency Loan The above Short Term Loans from Consortium Bankers, viz., Bank of India. Bank of Baroda. Bank of Maharashtra, IDBI Bank, HDFC Bankand  Royal Bank of Scotland N.V, are secured by a first charge, pari passu, inter se, by way of hypothecation of the Company's current assets, viz. raw materials, stock-in-process, semi-finished goods, finished goods, stores and spares not relating to Plant and  Machinery, bills receivable and book debts and other movables (except for Plant and Machinery secured by way of second charge), both present and future. Except loans from IDBI Bank and  HDFC Bank. the other loans from remaining consortium Bankers are also secured to the extent of Rs. 830.000 Millions , by Second Charge over the Company’s immoveable properties, by way of equitable mortgage, ranking pari passu, inter se.

164.895

174.168

Total

865.217

1057.411

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

 Patki and Soman

Chartered Accountant

Address :

639 Sadashiv Peth, Kumthekar Road, Pune-411030, Maharashtra, India

 

 

Associates/Subsidiaries :
  • Garware Elastomerics Limited
  • Garware Bestretch Limited (Formerly, Bestretch Elastomers Internationl Limited)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

50000000

Equity Shares

Rs.10/- each

Rs.500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

23708350

Equity Shares

Rs.10/- each

Rs.237.083 Millions

 

Note:

 

  • Of the above. 70,24, I00 Equity Shares (Previous Year 70,24,l00) are allotted as fully paid Bonus Shares by capitalisation of General Reserve and Share Premium.

 

  • Nil (Previous Year 19.96.000) Convertible Warrants have been converted into Equity Shares during the year.

 

 

 

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

237.083

237.083

217.123

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1935.095

1810.741

1605.423

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2172.178

2047.824

1822.546

LOAN FUNDS

 

 

 

1] Secured Loans

865.217

1057.411

946.624

2] Unsecured Loans

0.000

0.000

178.303

TOTAL BORROWING

865.217

1057.411

1124.927

DEFERRED TAX LIABILITIES

172.278

158.405

157.546

CONVERTIBLE WARRANTS APPLICATION MONEY

0.000

0.000

13.274

 

 

 

 

TOTAL

3209.673

3263.640

3118.293

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1426.839

1239.057

1241.942

Capital work-in-progress

14.334

88.181

40.514

 

 

 

 

INVESTMENT

169.760

176.297

177.130

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
938.298

840.858

962.210

 

Sundry Debtors
1264.933

1164.928

1164.840

 

Cash & Bank Balances
56.097

33.046

35.642

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
912.302

890.573

903.171

Total Current Assets
3171.630

2929.405

3065.863

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
603.113

330.736

569.853

 

Other Current Liabilities
687.604

608.905

639.245

 

Provisions
282.173

229.659

198.312

Total Current Liabilities
1572.890

1169.300

1407.410

Net Current Assets
1598.740

1760.105

1658.453

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.254

 

 

 

 

TOTAL

3209.673

3263.640

3118.293

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

4487.268

4374.501

3987.422

 

 

Other Income

27.531

29.892

14.337

 

 

TOTAL                                     (A)

4514.799

4404.393

4001.759

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing, Trading and Other Expenses

4017.702

3963.517

3462.624

 

 

TOTAL                                     (B)

4017.702

3963.517

3462.624

 

 

 

 

 

Less

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

497.097

440.876

539.135

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

107.445

129.284

143.195

 

 

 

 

 

 

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

389.652

311.592

395.940

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

129.242

123.017

110.192

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

260.410

188.575

285.748

 

 

 

 

 

Less

TAX                                                                  (H)

66.606

26.584

43.779

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

193.804

161.991

241.969

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

783.033

706.586

552.319

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

19.400

16.200

24.197

 

 

Dividend

59.271

59.271

54.281

 

 

Tax on Dividend

10.073

10.073

9.225

 

BALANCE CARRIED TO THE B/S

888.093

783.033

706.585

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1452.230

1441.598

1261.570

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

709.477

563.040

NA

 

 

Traded Goods, Stores, Spares etc

128.402

137.857

NA

 

 

Capital Goods

6.555

28.858

NA

 

TOTAL IMPORTS

844.434

729.755

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

8.17

6.92

11.68

 

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

1198.970

1265.360

1199.450

1372.890

Total Expenditure

1071.500

1129.040

1067.340

1219.140

PBIDT (Excl OI)

127.470

136.320

132.110

153.750

Other Income

-2.320

0.620

0.940

0.780

Operating Profit

125.150

136.940

133.050

154.530

Interest

24.270

21.050

21.190

22.640

PBDT

100.880

115.890

111.860

131.890

Depreciation

33.160

33.860

39.500

41.880

Profit Before Tax

67.720

82.030

72.370

90.010

Tax

12.690

17.240

16.080

21.790

Profit After Tax

55.030

64.790

56.290

68.220

Net Profit

55.030

64.790

56.290

68.220

 

 KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.29

3.68

6.05

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
5.80

4.31

7.17

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.66

4.52

6.63

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.12

0.09

0.16

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.12

1.09

1.39

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.02

2.50

2.18

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Performances:

 

During the year, the Company has earned 38% higher profit before tax as compared to the previous year, which was a year of exceptional and difficult market scenario. Higher profit is attributable amongst others to well planned cost reduction measures, value additions through new products and addition of new customers globally.

 

The sluggish demand due to global recession and slower growth in domestic market continued in the initial part of

the year and showed modest recovery in the latter part of the year. It was a year of mixed market response impacting the revenue for the year. The Company’s turnover for the year was Rs.4517.000 millions  as compared to Rs.4441.900 millions  of previous year, while export sales were at Rs 1452.200.millions  as against Rs. 1441.600 millions  of previous year.

 

Industry Structure and Development

 

Marine fishing had traditionally been the main focus of cordage business of the Company. The share of non fishing and non marine applications is increasing steadily by focusing on application requirements. While dominant share of the local markets continues to be corner stone of Company's overall business, the global markets and newer applications are taking a larger share. Pursuit of innovative and cost effective solutions catering to the customer needs has resulted in a slew of new products made with a large range of fibers, netting technologies and processes. They have been able to enhance the value for our customers by fabricating complex and sophisticated products to help our customers become dominant players in their markets. New customers for existing and new applications and in new geographies has widened customer base. The wide range of solutions for coastal protection, landfill management, railway applications and road construction has increased the business opportunity in infrastructure sector which is the focus area for growth of Indian Economy.

 

Demand of the fishing industry depends largely upon the world wide demand for fish whereas, the demand for the industrial and mooring ropes is dependent on the trade and industrial development of our country. The infrastructure business depends on the fiscal allocation and actual amount spent by the Central and State Governments and local bodies and the speed of change from traditional construction methodology to newer solutions.

 

The cost of raw materials used by the Company are based on petroleum products and affected by the demand supply balance in global economies particularly China. The Company has been able to pass on the increases in raw material cost to customers although with some time lag.

 

Opportunities

 

Significant opportunities exist for fishing, sports, safety, agriculture and industrial cordage products internationally as well as in the domestic markets. The opportunity to source better value propositions from a high quality integrated solution provider drives this demand. Domestic market opportunity is based on the increasing sophistication of fishing gear and growth in new application areas such as 'plasticulture'.

 

A stable financial market is necessary for business growth. While the financial markets have stabilized, the withdrawal effect of governmental interventions is yet to be assessed and understood.

 

The opportunity for Fiber products, Industrial Products and Projects is driven by Government investment in projects relating to ports, roads, railways, water management and overall growth. The overall slow down in economic growth had impacted the demand in Construction and Industrial sectors.

 

Export growth is impacted by competition from Chinese and European competitors, while small to medium enterprises pose a threat in the domestic market. However, the Company’s focus on application based solutions, continuous investment in product development and marketing efforts have enabled it to stay ahead of competition on both domestic and export fronts by developing partnerships and a sense of trust among the customers.

 

Outlook

 

The Company continues to invest in lean management to efficiently manage resources thus improving competitiveness. The products introduced in the market over the years have grown substantially and been strengthened through continuous development and increasing base in synthetic cordage, fiber and industrial products. Their geographic presence too has improved further during the year by consolidating our position in the Europe and America.

 

Fixed Assets:

 

  • Leasehold Land
  • Building
  • Plant and Machinery
  • Electrical Installation
  • Furniture and Fixtures
  • Office Equipments
  • Vehicles
  • Helicopter
  • Technical Know How
  • Computer Software

 

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2011

 

Rs. in Millions

Particular

Quarter ended

31st March

(Audited)

Year ended

31st March

(Audited)

 

 

 

(a) Net Sales / Income from operations

1360.474

5012.997

(b) Other Operating Income

12.424

23.683

Expenditure

 

 

a) (Increase) / Decrease in stock in trade and work in progress

(52.827)

(115.375)

b) Consumption of raw materials

612.095

2092.464

c) Purchase of traded goods

73.042

206.344

d) Employees cost

181.502

652.099

e) Depreciation

41.881

148.398

f) Other expenditure

405.336

1651.486

Total

1261.029

4635.416

Profit from operations before other income, interest and exceptional Items

111.869

401.264

Other income

0.781

1.447

Profit before interest and exceptional Items

112.650

401.280

Interest

22.644

89.158

Profit after Interest but before Exceptional Items

90.006

312.122

Exceptional Items

--

--

Profit (+)/Loss(-) from Ordinary Activities before tax

90.006

312.122

Tax expense

21.789

67.795

Net Profit (+)/Loss(-) from Ordinary Activities after tax

68.220

244.327

Extra ordinary items

--

--

Net Profit (+) / Loss (-) for the year period

68.220

244.327

Paid up equity share capital (Face value of Rs.10/- per share)

237.084

237.084

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

--

2109.424

Earning per share (EPS)

 

 

(a) Basic and diluted EPS before Extraordinary items

2.88

10.31

(b) Basic and diluted EPS after Extraordinary items

2.88

10.31

Public shareholding

 

 

          Number of shares

12663541

12663541

          Percentage of shareholding

53.41

53.41

 

 

 

Promoters and Promoters group Shareholding-

 

 

a) Pledged /Encumbered

 

 

Number of shares

--

--

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

--

--

Percentage of shares (as a % of total share capital of the company)

--

--

 

 

 

b) Non  Encumbered

 

 

Number of shares

11044809

11044809

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

100.00

100.00

Percentage of shares (as a % of total share capital of the company)

46.59

46.59

 

 

AS PER WEBSITE DETAILS:

 

PROFILE:

 

 

Subject specializes in providing customized solutions in the Cordage and Infrastructure industry across the globe. Their philosophy for customer servicing is persistent commitment to quality, focus on R and D, well equipped manufacturing facilities and deep understanding of customer needs.


Coupled with their focus on customer, we also believe in creating value for all their stake holders in an environment that fosters enterprise within and outside the organization.

 

Historical Background

 

The plinth of Subject Group was incorporated in year 1976 by the visionary philanthropist, late Mr. B. D. Garware, a recipient of ‘Padmabhushan’, the second highest civilian award of India – for his contribution to the Indian industry and society.


1976 saw the incorporation of Subject in collaboration with M/s Wall Industries Inc., USA. At the helm was his son, Mr. R B Garware, Chairman, RBG Group of companies. In the last three decades, GWRL has established itself as the gold standard for the Cordage industry in India and is fast emerging as a beacon for this industry world-wide.


Taking advantage of the meteoric growth in the Indian infrastructure industry over the last 5 years, the company diversified into this field and established a separate division within the group, thus achieving a quantum growth to the company.

 

MILESTONES

 

1993: PE twisted nettings for Indian and global Market

 

1995: PE braided nettings for Global market Sports nets and Fabricated nets for non-fishing applications

 

1996: Nylon Multifilament nettings. Various resins developed

 

1997: Geonets and Geoboxes

 

1998: Nylon Monofilament nettings

 

1999: Olivene MK2 nettings (entry into compact braided nettings)

 

2000: High end Sports nets (batting / golf cages) and Geonets (mulchmats)

 

2001: Square mesh cod ends

 

2002: Sapphire Braided nettings Olivene MK3 nettings Fully assembled Purse Seine net

 

2003: Dedicated Net Assembly shop Catfish Seine nets Shrimp Trawl Fabrication Electric Fence Wire Sea lion Protection nets

 

2004:  Garfil Nylon Purse Seine nettings for Domestic Market Purse Seine nettings as per Norwegian standards (Global market) Twisted Sapphire nettings Aquaculture Cages Fabrication

 

2005: Raschel Knotless nettings production Aquaculture Cages Fabrication for Tuna Twisted Sapphire nettings

Camouflage nets

 

2006: Production of Pelagic Nettings – Commissioning of one of the largest Hot Air D.S. Sapphire Aquaculture Cages Fabrication – for Cod Aquaculture Cages Fabrication for Abalone

 

 

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.44.37

UK Pound

1

Rs.70.84

Euro

1

Rs.62.96

 

 

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

6

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

 

54

 

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.