MIRA
INFORM REPORT
|
Report Date : |
13.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
UB ENGINEERING LIMITED |
|
|
|
|
Registered
Office : |
Sahyadri Sadan, |
|
|
|
|
Country : |
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|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
12.01.1970 |
|
|
|
|
Com. Reg. No.: |
014509 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.170.670
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L32109MH1970PLC014509 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
|
|
|
|
Line of Business
: |
Service Provider
of encompasses EPC Projects, Infrastructure, On-site fabrication of
structures, Installation, Testing and Commissioning of Electrical and
Mechanical Equipments, Piping etc. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is an established and old company having satisfactory track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Sahyadri Sadan, |
|
Tel. No.: |
91-20-40161700/24333722 |
|
Fax No.: |
91-20-40161711 |
|
E-Mail : |
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Overseas Office : |
Flat No. 505, Plot No. 22, |
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Tel. No.: |
00249 0154988926 |
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E-Mail : |
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|
|
Regional Office: |
Located At: Kolkata |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. S. D. Lalla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. J. K. Sardana |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. A. Harish Bhat |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. K. Rai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B. Viswanath |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Nandini Verma |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B. N. Rath |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ravi Nedungadi |
|
Designation : |
President and CFO- The UB Group |
|
|
|
|
Name : |
Mr. Mahesh Sabnis |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. V. M. Pendse |
|
Designation : |
Company Secretary |
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 |
|
|
|
|
|
|
|
|
6,953,547 |
40.74 |
|
|
6,953,547 |
40.74 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
6,953,547 |
40.74 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
551,632 |
3.23 |
|
|
2,255 |
0.01 |
|
|
335,426 |
1.97 |
|
|
37,396 |
0.22 |
|
|
926,709 |
5.43 |
|
|
|
|
|
|
1,309,641 |
7.67 |
|
|
|
|
|
|
5,994,584 |
35.12 |
|
|
1,684,050 |
9.87 |
|
|
198,418 |
1.16 |
|
|
198,418 |
1.16 |
|
|
9,186,693 |
53.83 |
|
Total Public shareholding (B) |
10,113,402 |
59.26 |
|
Total (A)+(B) |
17,066,949 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Service Provider
of encompasses EPC Projects, Infrastructure, On-site fabrication of
structures, Installation, Testing and Commissioning of Electrical and
Mechanical Equipments, Piping etc. |
GENERAL INFORMATION
|
Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
V.P. Mehta and Company Chartered Accountant |
|
Address : |
Mumbai, |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50550000 |
Equity Shares |
Rs.10/- each |
Rs.505.500 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17066949 |
Equity Shares |
Rs.10/- each |
Rs.170.670
Millions |
Note: Of the above issued share capital, 912,476 Shares were
allotted as fully Paid-up, by way of Bonus Shares by capitalization of General
Reserve.
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 |
170.670 |
170.670 |
170.670 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
845.730 |
813.430 |
750.320 |
|
|
4] (Accumulated Losses) |
0.000 |
(151.200) |
(362.570) |
|
|
NETWORTH |
1016.400 |
832.900 |
558.420 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
566.880 |
68.470 |
50.000 |
|
|
2] Unsecured Loans |
90.000 |
2.000 |
3.550 |
|
|
TOTAL BORROWING |
656.880 |
70.470 |
53.550 |
|
|
DEFERRED TAX LIABILITIES |
5.390 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1678.670 |
903.370 |
611.970 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
481.790 |
406.980 |
296.410 |
|
|
Capital work-in-progress |
17.980 |
8.840 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.200 |
0.110 |
0.110 |
|
|
DEFERREX TAX ASSETS |
0.000 |
121.150 |
154.840 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
180.930
|
189.700 |
146.620 |
|
|
Sundry Debtors |
2061.840
|
866.940 |
435.440 |
|
|
Cash & Bank Balances |
504.190
|
327.000 |
256.330 |
|
|
Other Current Assets |
38.520
|
20.810 |
19.460 |
|
|
Loans & Advances |
321.150
|
117.390 |
98.830 |
|
Total
Current Assets |
3106.630
|
1521.840 |
956.680 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1315.800
|
777.060 |
|
|
|
Other Current Liabilities |
526.340
|
296.610 |
717.870 |
|
|
Provisions |
85.790
|
81.880 |
78.200 |
|
Total
Current Liabilities |
1927.930
|
1155.550 |
796.070 |
|
|
Net Current Assets |
1178.700
|
366.290 |
160.610 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1678.670 |
903.370 |
611.970 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5267.980 |
4531.060 |
2645.890 |
|
|
|
Other Income |
39.930 |
31.380 |
17.920 |
|
|
|
TOTAL (A) |
5307.910 |
4562.440 |
2663.810 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Contract Costs and Other Expenses |
4787.180 |
4208.110 |
2463.390 |
|
|
|
Prior Period Items |
0.000 |
0.000 |
(1.940) |
|
|
|
TOTAL (B) |
4787.180 |
4208.110 |
2461.450 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
520.730 |
354.330 |
202.360 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
81.600 |
48.330 |
63.080 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
439.130 |
306.000 |
139.280 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
37.540 |
20.840 |
7.360 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
401.590 |
285.160 |
131.920 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
94.780 |
73.790 |
3.540 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
306.810 |
211.370 |
128.380 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(151.200) |
(362.570) |
(493.540) |
|
|
|
CAPITAL RESERVES
NO LONGER REQUIRED WRITTEN BACK |
0.000 |
0.000 |
2.590 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
155.610 |
(151.200) |
(362.570) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Overseas Contracts |
430.330 |
511.560 |
NA |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.98 |
12.39 |
10.05 |
|
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 |
1345.500 |
1344.900 |
1070.800 |
2349.800 |
|
Total Expenditure |
1221.200 |
1164.700 |
996.000 |
2165.200 |
|
PBIDT (Excl OI) |
124.300 |
180.200 |
74.800 |
184.600 |
|
Other Income |
4.600 |
2.400 |
3.500 |
4.200 |
|
Operating Profit |
128.900 |
182.600 |
78.300 |
188.800 |
|
Interest |
17.500 |
28.600 |
33.200 |
64.100 |
|
PBDT |
111.400 |
154.000 |
45.100 |
124.700 |
|
Depreciation |
11.200 |
11.600 |
14.200 |
21.500 |
|
Profit Before Tax |
100.200 |
142.400 |
30.900 |
103.200 |
|
Tax |
30.900 |
49.700 |
10.300 |
21.200 |
|
Profit After Tax |
69.300 |
92.700 |
20.600 |
82.000 |
|
Net Profit |
69.300 |
92.700 |
20.600 |
82.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.78
|
4.63 |
4.82 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.62
|
6.29 |
4.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.19
|
14.78 |
10.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.40
|
0.34 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.54
|
1.47 |
1.52 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.61
|
1.32 |
1.20 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE OF THE
COMPANY
During the year, the turnover of the company has increased to Rs.5267.98
Million from Rs.4531.06 Million in the previous year. The Company has produced
an excellent financial results, with profit after taxation of Rs.306.81
Million. After wiping off of the accumulated losses of earlier years, the
company has carried the balance profit of Rs. 155.61 Million to the Balance
Sheet.
The company ended the year with healthy order book of Rs.8482 Million as
compared to Rs. 6001 Million in the previous year recording an increase of
41.34%. With increased expenditure on infrastructure and power by the
Government of India in recent budget 2010-11, good opportunities are
forthcoming. Barring exceptional circumstances, The Directors expect better
prospects for the Company in current financial year.
SUBSIDIARY COMPANY
During current financial year, a company under the name and style of “UB
Infrastructure Limited” was incorporated as a wholly owned subsidiary of the
Company to carry on the business in the field of Infrastructure including
construction of roads, highways, bridges etc. The said Company has plans to
commence it’s operations during the current financial year.
Management
Discussion and Analysis Report
INDUSTRY REVIEW:
The Government of India’s focus with increased budgetary allocation for
infrastructure and power in recent budget
2010-11, establishment of lending mechanism through IIFCL, encouragement
for more private sector participation
through public-private partnership (PPP) and policy initiatives like
Viability Gap Funding (VGF), Foreign Direct Investment (FDI), Special Purpose
Vehicle (SPV) etc. have resulted in increased opportunities for infrastructure
and other industrial projects in
REGULATORY
ENVIRONMENT:
The company being engaged in the business of providing integrated design
engineering, procurement, construction and project management services for
infrastructure and energy sector in terms of construction contract, no specific
regulations govern the business of the Company. However, for execution of work,
Company is required to obtain licenses and approvals and comply with applicable
laws.
BUSINESS ANALYSIS:
The Company operates in two primary Business Segments viz. Mechanical
Erection / Engineering Procurement and Construction (EPC) and EPC Electrical with
some jobs on joint venture basis. During
the year, the company has recorded
impressive increase in turnover by 16% and Profit before Tax by 41% and Profit
after Tax by 45% as compared to previous year. Consequently, the entire
accumulated losses have been wiped off.
Impact on total revenue is on account of direct execution of contracts
and more focus on Engineering, Procurement and Construction (EPC) contracts in
Electrical and Mechanical business. Considering huge potential for
prefabricated steel structures in the fast growing infrastructure, the Company
has planned to establish structured fabrication unit in the state of
Chhattisgarh. Chhattisgarh State Industrial Development Corporation (CSIDC) has
allotted the land and further formalities are in process. With a view to
achieve further expansion, the Company proposes to enter into the field of
Infrastructure including construction of roads, highways, bridges etc. in
addition to EPC (Engineering, Procurement and Construction) projects. Keeping
this in view, the Company has already incorporated a wholly owned subsidiary,
to undertake these projects. With the healthy growth and carry forward of
strong order book, prospects for the current year are encouraging.
Implementation of sustained efficiency programme across the enterprise, strong
recruitment and training policies will improve and strengthen the operational
efficiencies further.
Fixed Assets:
- Land Freehold
- Land Leasehold
- Building
- Plant and Machinery
- Furniture and Fixtures
- Electrical Installation
- Vehicles
AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED 31 MARCH 2011
Rs. in Millions
|
Particular |
Year Ended |
|
|
31.03.2011 |
|
|
|
|
(a)
Net Sales / Income from operations |
6108.100 |
|
(b)
Other Operating Income |
2.900 |
|
Total
Income |
6111.000 |
|
Expenditure |
|
|
a)
(Increase) / Decrease in stock in trade and work in progress |
(112.700) |
|
b)
Contract cost |
5346.700 |
|
c)
Employees cost |
154.100 |
|
d)
Depreciation |
58.500 |
|
e)
Other expenditure |
159.000 |
|
Total |
5605.600 |
|
Profit
from operations before other income, interest and exceptional Items |
505.400 |
|
Other
income |
14.700 |
|
Profit
before interest and tax |
520.100 |
|
Interest |
143.400 |
|
Profit before tax |
376.700 |
|
Tax
expense |
112.100 |
|
Net
Profit (+) / Loss (-) for the year period |
264.600 |
|
Paid
up equity share capital (Face value of Rs.10/- per share) |
170.670 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
1110.300 |
|
Earning
per share (EPS) |
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
15.50 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year to
date and for the previous year (not to be
annualised) |
15.50 |
|
Public
shareholding |
|
|
Number of shares |
10113402 |
|
Percentage of shareholding |
59.26 |
|
Promoters
and Promoters group Shareholding- |
|
|
Number of shares |
6953547 |
|
Percentage of shareholding |
40.74 |
|
a)
Pledged /Encumbered |
|
|
Number
of shares |
1221971 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
17.57 |
|
Percentage
of shares (as a % of total share capital of the company) |
7.16 |
|
|
|
|
b)
Non Encumbered |
|
|
Number
of shares |
573157.600 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
82.43 |
|
Percentage
of shares (as a % of total share capital of the company) |
33.58 |
Segment Reporting:
Rs. in Millions
|
Particular |
Year Ended
31.03.2010 |
||
|
|
Mechanical
Erection |
EPC Electrical |
Total |
|
Revenue |
2848.400 |
3262.600 |
6111.000 |
|
Capital Employed |
|
|
|
|
(Segment Assets – Segment Liabilities) |
1435.700 |
749.100 |
2184.800 |
BALANCE SHEET AS
ON 31ST MARCH, 2011
Rs. in Millions
|
Particular |
As on 31.03.2011 |
|
|
Audited |
|
SHAREHOLDER FUND |
|
|
Share capital |
170.670 |
|
Reserves and Surplus |
1110.265 |
|
Loan Funds |
903.876 |
|
Deferred Tax Liability |
0.000 |
|
Total |
2184.811 |
|
|
|
|
Fixed assets |
720.942 |
|
Investments |
1.300 |
|
Construction work in progress |
74.215 |
|
|
|
|
CURRENT ASSETS, LOANS AND ADVANCES |
|
|
Inventory |
361.465 |
|
Sundry Debtors |
3232.310 |
|
Cash and Bank Balances |
393.160 |
|
Other Current Assets |
278.390 |
|
Loans and Advances |
267.524 |
|
|
|
|
Less: Current Liabilities and Provision |
|
|
Current Liabilities |
2930.767 |
|
Provision |
232.478 |
|
Deferred Tax Assets |
18.750 |
|
|
|
|
Total |
2184.811 |
Note:
1 The Company operates in two Primary Business
Segments i.e. Mechanical and Electrical Contracts.
2. Sales include claim of Rs.135.781 millions
relating to an earlier year.
3. Subsidiary Companies, UB Infra Limited and
UB Ostan, have not commenced Commercial Operations.
4. Tax Expense include Income Tax and Deterred
Tax adjustment.
5. Figures fir previous year have been
reclassified to conform to the figures of the current period / year.
6. The above financial results have been
reviewed by the Audit Committee and approved by the Board of Directors at its
meeting held on 26th May, 2011
7. There were so pending complaints either at
the beginning oral the end of the quarter. No investor complaint received
daring the quarter.
AS PER WEBSITE DETAILS:
PROFILE:
Subject is the flagship Company of UB Group’s Engineering Business.
Subject commenced its operations in 1963 as a partnership firm (then known as
Western India Erectors) started by two foresighted technocrats and went public
in the year 1972.
The Company came under the UB Umbrella in 1988.
The sphere of subject activities encompasses EPC Projects, Infrastructure,
On-site fabrication of structures, Installation, Testing and Commissioning of
Electrical and Mechanical Equipments, Piping etc. for large Industrial projects
such as Power, Refineries, Steel, Cement, Fertilizer, Petrochemical and
Desalination Projects. The Company enjoys pre-qualification credentials in
Electrical Sub-station projects upto 400 KV in
Subject overseas operations have covered
The phenomenal growth of subject is due to its proven skills in Project
Management, Consistency in Quality, EHS implementation and completion of
projects on time. The experience and expertise of subject is reflected in the
form of repeat orders from practically all reputed clients, Indian as well as
overseas.
To provide quality service to customers, subject operates through following strategic business Units:
- Erection Division
- EPC Division - Mechanical
- EPC Division - Electrical
- Overhauling And Maintenance Division
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.44.72 |
|
|
1 |
Rs.72.93 |
|
Euro |
1 |
Rs.64.72 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
51 |
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.