MIRA
INFORM REPORT
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Report Date : |
18.07.2011 |
IDENTIFICATION DETAILS
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Name : |
PRAJ INDUSTRIES
LIMITED |
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Registered Office : |
"PRAJ HOUSE",
Bavdhan,
Pune – 411021, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
08.11.1985 |
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Com. Reg. No.: |
11-038031 |
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Paid-up Capital : |
Rs. 369.557
Millions |
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CIN No.: [Company
Identification No.] |
L27101PN1985PLC038031 |
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Legal Form : |
A Public Limited
Liability company. The Company’s
Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Fuel
Ethno Plant, Alcohol Plant, Brewery Plant, Beer Plant. |
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No. of Employees : |
800 (approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 22000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial position
of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be 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
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Name : |
Mr. Ramesh Bhosle |
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Designation : |
Accounts Manager |
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Contact No.: |
91-20-22951511 |
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Date |
18.07.2011 |
LOCATIONS
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Registered/Head Office : |
"PRAJ
HOUSE", Bavdhan, Pune 411
021, |
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Tel. No.: |
91-20-22951511/22952214/39806666 / 22905000 |
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Fax No.: |
91-20-22951718 / 22951515 |
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E-Mail : |
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Website : |
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Regional Office: |
Located at:
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Factory 1, 2,
3: |
Sanaswadi
Unit Gat No.748, Opposite Metacolour, Sanaswadi, Tal. Shirur,
Dist. Pune 412 207, |
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Tel. No.: |
91-2137-252328 / 252913 |
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Fax No.: |
91-2137-252911 |
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Factory 4: |
Kandla SEZ
Unit Plot No. 307 to 314, Kandla SEZ, Gandhidham, Kutch 370
230, Gujarat, |
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Tel. No.: |
91-2836-253460 / 253461 |
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Fax No.: |
91-2836-253462 |
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Export Oriented Unit |
Kandla SEZ: Gandhidham, Kutch – 370230, |
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R and D Centre |
Matrix - The |
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Tel. No.: |
91-20-66754000/22922001 |
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Fax No.: |
91-20-22922004 |
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Branches: |
Located at
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International
Office : |
Located at:
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DIRECTORS
As On 31.03.2011
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Name : |
Mr. Pramod Chaudhari |
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Designation : |
Executive
Chairman |
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Name : |
Mr. Gajanan Nabar |
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Designation : |
CEO and Managing Director |
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Date of Birth/Age : |
16.11.1963 |
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Date of Appointment : |
15.11.2010 |
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Qualification : |
Master’s degree
in Organic Chemistry and in Management from |
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Name : |
Mr. Shashank
Inamdar |
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Designation : |
Managing Director |
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Name : |
Mr. Venkatachala
Datar |
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Designation : |
Director |
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Name : |
Mr. Berjis Desai |
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Designation : |
Director |
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Name : |
Mr. Sivaramakrishnan
Iyer |
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Designation : |
Director |
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Date of Birth/Age : |
28.07.1967 |
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Date of Appointment : |
17.04.2003 |
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Qualification : |
Bachelor’s degree in Commerce and Chartered Accountant. |
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Name : |
Mr. Rakesh
Jhunjhunwala |
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Designation : |
Director |
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Name : |
Mr. Anil Joshi |
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Designation : |
Director |
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Name : |
Mr. Parimal Chaudhari |
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Designation : |
Director |
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Date of Birth/Age : |
01.08.1956 |
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Date of Appointment : |
21.07.2006 |
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Qualification : |
Post Graduate degree
in Journalism and Communications from |
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Name : |
Mr. Daljit Mirchandani |
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Designation : |
Director |
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Name : |
Mr. Kishor Chaukar |
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Designation : |
Director |
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Name : |
Mr. Utpal Sheth |
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Designation : |
Director |
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Name : |
Mr. Rajiv Maliwal |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Prakash Kulkarni |
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Designation : |
Non-Executive Director |
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Date of Birth/Age : |
09.06.1947 |
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Date of Appointment : |
11.10.2010 |
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Qualification : |
Graduate
Engineer from VJTI and an alumni of |
KEY EXECUTIVES
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Name : |
Mr. Deepak Mogal |
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Designation : |
Company Secretary |
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Name : |
Mr. Ramesh Bhosle |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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46,620,000 |
25.23 |
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46,620,000 |
25.23 |
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Total shareholding of Promoter and Promoter Group (A) |
46,620,000 |
25.23 |
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(B) Public Shareholding |
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5,442,645 |
2.95 |
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8,637,664 |
4.67 |
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26,802,634 |
14.51 |
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40,882,943 |
22.13 |
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24,242,726 |
13.12 |
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35,708,733 |
19.33 |
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27,458,467 |
14.86 |
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9,865,854 |
5.34 |
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637,824 |
0.35 |
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7,529,442 |
4.07 |
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76,338 |
0.04 |
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1,622,250 |
0.88 |
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97,275,780 |
52.64 |
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Total Public shareholding (B) |
138,158,723 |
74.77 |
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Total (A)+(B) |
184,778,723 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
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Total (A)+(B)+(C) |
184,778,723 |
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(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 million
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Fuel Ethno Plant, Alcohol Plant, Brewery Plant, Beer Plant. |
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Products : |
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Export : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
Cash and Credit |
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Purchase : |
Cash and Credit |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
800
(approximately) |
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Bankers : |
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Banking
Relations : |
-- |
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Auditors : |
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Name 1 : |
B. K.
Khare and Company Chartered
Accountant |
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Address: |
706/708,
Sharda Chambers, New Marine Lines, Mumbai 400 020, |
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Internal Auditors |
Khare Deshmukh and Company Chartered Accountant |
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Solicitors : |
J. Sagar Associstes – Mumbai |
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Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2011:-
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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450000000 |
Equity Shares |
Rs.2/- Each |
Rs.900.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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184778723 |
Equity Shares |
Rs.2/- Each |
Rs.369.557 Millions |
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Of the above:
40,231 equity shares of Rs. 2 each were allotted during the financial
year 2010-11 pursuant to the exercise of stock options.
1,307,410 equity shares of Rs. 2 each were allotted during the financial
year 2009-10 pursuant to the exercise of stock options.
269,272 equity shares of Rs. 2 each were allotted during the financial
year 2008-09 pursuant to the exercise of stock options.
91,372,879 equity shares of Rs. 2 each issued as bonus shares during the
financial year 2007-08 by capitalisation of securities premium account.
7,300,125 equity shares of Rs. 2 each were allotted during the financial
year 2007-08 pursuant to the conversion of warrants.
588,740 equity shares of Rs. 2 each were allotted during the financial
year 2007-08 pursuant to the exercise of stock options.
40,556,260 equity shares of Rs. 2 each issued as bonus shares during the
financial year 2005-06 by capitalisation of securities premium account.
4,320,000 equity shares of Rs. 10 each were allotted to share holders of
Praj Engineering Limited, during the financial year 2002-03 pursuant to a
scheme of amalgamation without payment being received in cash. (*)
896,652 equity shares of Rs. 10 each (converted were allotted to shares holders
of Praj Finance Limited, during the financial year
1997-98 pursuant to a scheme of amalgamation without payment being
received in cash. (*)
1,350,000 equity shares of Rs. 10 each issued as bonus shares during the
financial year 1993-94 capitalisation of reserves. (*)
21,491 equity shares of Rs. 10 each were allotted during the financial
year 1989-90 pursuant to contracts without payment having been received in
cash. (*)
(*) During the financial year 2005-06 the Company subdivided the equity
shares of Rs. 10 each in to five shares of Rs. 2 each. Consequently these
shares were converted into 32,940,715 equity shares of Rs. 2 each.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
369.557 |
369.477 |
366.862 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5219.931 |
4953.857 |
4067.745 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5589.488 |
5323.334 |
4434.607 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
127.435 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
127.435 |
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DEFERRED TAX LIABILITIES |
143.167 |
153.421 |
131.504 |
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TOTAL |
5732.655 |
5476.755 |
4693.546 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1418.863 |
1374.239 |
1334.200 |
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Capital work-in-progress |
177.087 |
67.013 |
137.397 |
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INVESTMENT |
2640.418 |
2771.124 |
2141.733 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
628.542
|
282.948
|
602.625
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Sundry Debtors |
1987.232
|
1124.849
|
1747.533
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Cash & Bank Balances |
1371.070
|
1261.064
|
1127.778
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Other Current Assets |
253.505
|
411.932
|
870.650
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Loans & Advances |
1206.967
|
1220.454
|
950.210
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Total Current Assets |
5447.316 |
4301.247 |
5298.796 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Sundry Creditors |
1112.752 |
662.691 |
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Other Current Liabilities |
1822.558
|
1544.133
|
3401.600
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Provisions |
1015.719
|
830.044
|
816.980
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Total Current Liabilities |
3951.029 |
3036.868 |
4218.580 |
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Net Current Assets |
1496.287 |
1264.379 |
1080.216 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5732.655 |
5476.755 |
4693.546 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
5529.310 |
6022.840 |
7718.813 |
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Other Income |
290.255 |
424.517 |
238.034 |
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TOTAL (A) |
5819.565 |
6447.357 |
7956.847 |
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Less |
EXPENSES |
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Cost of goods consumed |
3273.387 |
3433.738 |
3840.269 |
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Manufacturing , Selling and other costs |
1116.485 |
999.552 |
2313.494 |
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Personnel Costs |
718.858 |
615.394 |
0.000 |
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Prior Period Items |
0.000 |
59.610 |
0.000 |
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Exceptional Items |
0.000 |
0.000 |
109.479 |
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TOTAL (B) |
5108.730 |
5108.294 |
6263.242 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
710.835 |
1339.063 |
1693.605 |
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Less |
FINANCIAL
EXPENSES (D) |
0.059 |
3.300 |
3.870 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
710.776 |
11335.763 |
1689.735 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
111.356 |
105.110 |
81.713 |
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PROFIT BEFORE
TAX (E-F) (G) |
599.420 |
1230.653 |
1608.022 |
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Less |
TAX (I) |
64.695 |
91.806 |
310.543 |
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PROFIT AFTER TAX
(G-I) (J) |
534.725 |
1138.847 |
1297.479 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3251.936 |
2538.234 |
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Less |
APPROPRIATIONS |
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|
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Transfer to General Reserve |
53.500 |
114.000 |
NA |
|
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Dividend |
232.821 |
265.947 |
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Tax on Dividend |
37.769 |
45.198 |
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|
BALANCE CARRIED
TO THE B/S |
3462.571 |
3251.936 |
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
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Export Earnings |
1625.624 |
2403.867 |
3018.071 |
|
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|
Design and engineering services, software
and consultancy |
3212.428 |
272.069 |
534.445 |
|
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TOTAL EARNINGS |
4838.052 |
2675.936 |
3552.516 |
|
|
|
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IMPORTS |
|
|
|
|
|
|
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Raw Materials |
316.621 |
166.906 |
405.159 |
|
|
|
Capital goods |
50.904 |
5.617 |
115.810 |
|
|
|
Components and spares parts |
284.035 |
326.721 |
280.445 |
|
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TOTAL IMPORTS |
651.560 |
499.244 |
801.414 |
|
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|
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|
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Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
2.89 |
6.18 |
7.08 |
|
|
|
- Diluted |
2.89 |
6.16 |
7.02 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
9.19 |
17.66 |
16.31 |
|
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|
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|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.84 |
20.43 |
20.83 |
|
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.73 |
21.68 |
18.55 |
|
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Return on Investment (ROI) (PBT/Networth) |
|
0.11 |
0.23 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.71 |
0.57 |
0.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.38 |
1.42 |
1.26 |
LOCAL AGENCY FURTHER INFORMATION
The Details of
Sundry Creditors
Rs.
In Millions
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Creditors for goods and services |
|
|
|
|
- Dues to Micro and small enterprises under MSMED act, 2006 |
3.462 |
4.937 |
NA |
|
- Dues to other parties |
1109.290 |
657.754 |
NA |
|
Total |
1112.752 |
662.691 |
NA |
HISTORY
Subject is a global Indian company started way back in 8th November of the
year 1985 with the objective of providing cutting edge solutions to the
Distillery Industry. PIL now spread across 5 continents and 40 countries with
over 350 references, which offers innovative solutions to significantly add
value in bio-ethanol, bio-diesel and brewery plants and related wastewater
treatment systems for customers, worldwide. Company is a knowledge-based
company with expertise and experience in Bioprocesses and engineering. It
delivers know how, License, engineering design, plant and equipment, project
management, commissioning and customer care and turnkey projects.
Beginning of Praj's journey into Agro-based process industry and the first
opportunity came from a Sugar Mill in
The Company had ventured into
During the year 2005, Company commissioned two large size ethanol plants in
in the year 2007 and established JV Company under the name of BioCnergy
Europa B.B in
Pantaleon Group,
The Company has a vision of expanding in the biofuels technology arena. For
biodiesel projects, the company will offer in-house developed turnkey solutions
including technology, engineering, plant and equipment and project management
services.
FINANCIAL RESULTS:
In the year, the Company
has recorded a total income of Rs. 5820.000 million (previous year Rs. 6447.000
million). While the total income decreased by 10% Profit before Tax decreased
by 54% to Rs. 599.000 million (previous year Rs. 1231.000 million). The
performance was impacted by adverse global market conditions.
Subsidiaries:
Pacecon
Engineering Projects Limited (PEPL), BioCnergy Europa B. V., Netherlands, Praj
Jaragua Bioenergia S.A., Brazil, Praj Americas Inc.,
Strategic
Partnership / Joint Ventures
The Company has entered
into a strategic partnership with Qteros Inc.,
Management Discussion and Analysis
Overall Review
The global
meltdown continued to impact new investments in the renewable energy industry
and in particular the Company’s business during the FY 2010-11. As briefed in
the half yearly communication to shareholders (a copy of which is available on
there website), 50% of the Company’s business comes from overseas markets.
While some geographies showed robust performance, others were slower off the
block.
Keeping in mind
the long-term future of renewables, the Company remains optimistic about its
future role in the Company’s business. Hence, the Company concentrated on
building longer term strengths so as to retain and progress its position as
supplier of choice. Technology development was another area of focus which is
expected to provide further impetus.
Financial Review
The Company
recorded performance in line with the prevailing market trend in renewables.
While the whole year’s performance was subdued, early signs during later part
of the year indicate reversal in the broad market trends as demonstrated in the
last two quarter of FY 2010-11.
Operating Environment
& Opportunities
The ethanol
industry is again showing some momentum with a YOY growth of 18% in total
alcohol production. This suggests that capacities are getting utilized. While
one part is possibly high price of oil, many more countries have mandated
biofuels aggressively.
Other businesses
like brewery equipment, bionutrients, process equipment and water and
wastewater treatment solutions, forming nearly 20% of the Company’s revenue
stream, are also showing signs of build-up.
Alcohol/Ethanol Industry
Review
Strong crude oil
prices and a fresh thrust on renewables saw a regained momentum in the market.
While crude oil prices are immediate reasons for a thrust on biofuels,
sustained thrust is only possible due to strong policy initiatives in the form
of mandates and its implementation. Technology is a large supporting factor in
the pursuit of biofuels.
There were also
some structural changes in the bioethanol market during the year. Many new
markets emerged strongly, while traditional markets remained dormant as regards
new investments. To reiterate, biofuels are relatively new business paradigm
and as such new influencing factors will emerge as the market grows in size.
Biofuels industry also saw much of the integration with conventional fuels businesses
with the likes of BP, Nobel and many other Companies buying bioethanol assets.
By 2020, bioethanol will likely form 13% of world gasoline consumption which
translates into a CAGR of 6% (FAO-OECD study). While challenges remain, many
can be overcome by application of breakthrough technologies. The Company is
engaged in some of the dimensions of technological pursuit like lignocellulosic
ethanol.
Water and
Wastewater Treatment
The Company has a
dedicated division operating in this segment. Given the opportunities, this
segment promises to grow and form a strong revenue stream for the Company.
Going forward, the Company will also examine overseas opportunities.
As you know Praj had
engaged a strategy consulting firm to provide a road map for entry into the
water & wastewater treatment solutions business. The report was tabled to
the Strategy Committee of the Company. The group will initially focus on the
Indian market in the first phase. Praj will play the role of a Systems
Integrator offering End to End solutions. Key industrial segments like power,
pharmaceuticals, textiles for critical applications will be targeted
specifically.
They had shared
there wish for acquisition opportunities in this space. They continue to scan
and evaluate the market in search of a good fi t.
Customized
Engineering and Manufacturing
This business line
offers the Company a foothold in diverse industrial verticals. Investments are
being driven on account of the continual demand for equipment as well as export
opportunities. To tap international markets, the Company is setting up a
manufacturing unit at Kandla (near the earlier unit). This workshop will be
ready by mid-2011.
Biotech Products
The biotech
nutrients product portfolio currently addresses the ethanol plants segment
which use biobased nutrients in their operations in order to maintain optimum
conditions for delivering efficiency. Considering the installed base and the
market share of the Company, they are set to expand this business further. In
order to explore overseas markets for certain products, a GMP (Good
Manufacturing Practices) compliant manufacturing facility is being set up near
Pune. This facility is expected to be fully operational by mid-2011.
Joint Development
in Second Generation Bioethanol Technology
The Company signed
a Joint Development Program with Qteros, Inc., the developer of a unique and
highly efficient Consolidated Bioprocessing (CBP) platform for cellulosic
ethanol. This is a strategic partnership which aims to accelerate
commercialization efforts for industrial-scale cellulosic ethanol production.
The agreement leverages both Qteros’ broadly patent protected and highly
flexible CBP platform with Praj’s research capabilities and its technology,
process design, engineering and construction expertise to deliver fully
integrated engineering design packages for the lowest cost production of
ethanol from a broad variety of non-food based feedstocks. Meanwhile, Praj
continues its independent research with other partners as also on its own.
Awards, Certifi
cations & Recognition
The Company
received Gold Trophy for Export Performance for the year 2008-09 from
Engineering Export Promotion Council (EEPC) for third consecutive year. The
Chairman of the Company has been invited to co chair the National Renewables
Energy Committee of CII. This demonstrates the unique position of the Company
as a thought leader in the renewables space.
The Company
received the following certification this year:
1. ISO 14001
(2004) for Environmental management system for Sanaswadi Manufacturing Shop and
Praj House
2. ASME “U2”
Certificate for Kandla SEZ Manufacturing Shop (for design and fabrication of
pressure vessels operating at pressures up to 10000 PSI).
Future Outlook
In the short-term,
the Company plans to revive and reassume the growth path. While cleantech would
form the backbone of the Company’s business, the Company is also examining
opportunities in other sectors which will form part of its growth plan beyond
2015. The Company would look at inorganic growth opportunities more strongly
and has created a separate resource base to drive the same. The Company has
intensified its efforts in the bio-chemicals space and is conducting
developmental efforts in the same.
Rs. In Millions
|
Contingent liabilities |
31.03.2011 |
31.03.2010 |
|
Claims against Company not acknowledged
as debts (primarily relating to performance related claims filed by
customers) |
35.831 |
20.639 |
|
Disputed demands in appeal towards income
tax, Service tax and sales tax |
39.090 |
8.704 |
|
Guarantee issued in respect of
obligations of a subsidiary |
- |
- |
|
Unfulfilled Export Obligations under EPCG
scheme to be fulfilled over 8 years |
292.064 |
313.170 |
FIXED
ASSETS
·
Technical
Knowhow
·
Software’s
·
Praj Brand
·
Land
(freehold)
·
Buildings
·
Plant and
machinery
·
Computers and
office equipment
·
Vehicles
·
Furniture and
fixtures
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.44.53 |
|
|
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.62.98 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
64 |
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.