MIRA INFORM REPORT

 

 

Report Date :

20.06.2011

 

IDENTIFICATION DETAILS

 

Name :

MAHINDRA COMPOSITES LIMITED (w.e.f. 17.01.2007)

 

 

Formerly Known As :

SIRO PLAST LIMITED

 

 

Registered Office :

145, Mumbai-Pune Road, Pimpri, Pune-411018, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

18.08.1982

 

 

Com. Reg. No.:

028040

 

 

Paid-up Capital :

Rs. 43.900 Millions

 

 

CIN No.:

[Company Identification No.]

L24117MH1982PTC028040

 

 

Legal Form :

Public Limited Liability Company

Company’s shares are listed on the stock exchange.

 

 

Line of Business :

Manufacturer, Supplier and Exporter of Sheet Moulding Compound (SMC), Dough Moulding Compound (DMC), Distributor Box

 

 

No. of Employees :

104 (approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 594000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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.

 

 

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 PARTED BY

 

Name :

Mr. Shailesh Pandhare

Designation :

Marketing Executive

Contact No.:

91-9011043253

Date :

18.06.2011

 

 

LOCATIONS

 

Registered Office/ Factory 1 :

145, Mumbai-Pune Road, Pimpri, Pune-411018, Maharashtra, India

Tel. No.:

91-20- 27425265 / 66 / 66300946

Mobile No.:

91-9011043253 (Mr. Shailesh Pandhare)

Fax No.:

91- 20-27425272

E-Mail :

iut@eth.net

pandhareshailesh@mahindracomposites.com

Website :

www.mahindracomposites.com

 

 

Factory 2 :

Survey No. 178/0, Village Sale, Post : Vigawali, Mumbai – Goa Highway, Tal. Mangaon, District Raigad – 402104, Maharashtra, India

Tel. No.:

91-2140-263128/112

Fax No.:

91-2140-263145

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Mr. Hemant Luthra

Designation :

Chariman

 

 

Name :

Mr. P N Vencatesan

Designation :

Director

 

 

Name :

Mr. R R Krishnan

Designation :

Director

 

 

Name :

Mr. C S Devale

Designation :

Director

 

 

Name :

Mr. M R Joshi

Designation :

Director

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Bodies Corporate

1,977,203

44.90

Sub Total

1,977,203

44.90

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

1,977,203

44.90

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

2,050

0.05

Financial Institutions / Banks

1,600

0.04

Sub Total

3,650

0.08

(2) Non-Institutions

 

 

Bodies Corporate

166,117

3.77

Individuals

 

 

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

1,564,309

35.52

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

589,715

13.39

Any Others (Specify)

103,015

2.34

Non Resident Indians

103,015

2.34

Sub Total

2,423,156

55.02

Total Public shareholding (B)

2,426,806

55.10

Total (A)+(B)

4,404,009

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)

4,404,009

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Supplier and Exporter of Sheet Moulding Compound (SMC), Dough Moulding Compound (DMC), Distributor Box

 

 

Products :

  • Sheet Moulding Compound
  • Dough Moulding Compound
  • Fibre Reinforced Plastic
  • Distribution and Meter Box 
  • Sheet Moulding Compound
  • Dough Moulding Compound
  • Fibre Reinforced Plastic
  • Single Phase Distribution Box
  • Single Phase Meter Box
  • Three Phase Meter Box
  • Three Phase Distribution Box, etc.

 

 

Exports :

 

Products :
  • SMC
  • DMC

Countries :
  • Germany
  • UK

 

 

Imports :

 

Products :
  • Raw Material

Countries :
  • China

 

 

Terms :

 

Selling :

L/C, Cash and Credit: 30 Days

 

 

Purchasing :

L/C, Cash and Credit: 30 Days

 

 

GENERAL INFORMATION

 

Customers :
  • OEM’s
  • Industries

 

 

No. of Employees :

104 (approximately)

 

 

Bankers :
  • HDFC Bank Limited
  • Citi Bank

 

 

 

Banking Relations :

-

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

Mumbai, Maharashtra, India

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs. 10/- each

Rs. 50.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4388261

Equity Shares

Rs. 10/- each

Rs. 43.882 Millions

 

 

As on 23.07.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs. 10/- each

Rs. 50.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4404009

Equity Shares

Rs. 10/- each

Rs. 44.040 Millions

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

43.900

43.900

43.900

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

104.600

89.200

70.700

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

148.500

133.100

114.600

LOAN FUNDS

 

 

 

1] Secured Loans

55.600

50.500

50.600

2] Unsecured Loans

0.000

0.000

0.900

TOTAL BORROWING

55.600

50.500

50.600

DEFERRED TAX LIABILITIES

6.200

7.600

7.300

 

 

 

 

TOTAL

210.300

191.200

173.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

77.500

76.100

74.000

Capital work-in-progress

4.700

3.700

0.500

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

4.200

3.400

5.400

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
41.700

34.800

24.700

 

Sundry Debtors
132.200

121.600

114.200

 

Cash & Bank Balances
8.900

9.200

7.800

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
17.400

21.200

20.700

Total Current Assets
200.200

186.800

167.400

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
58.400

66.600

63.300

 

Provisions
17.900

12.800

10.600

Total Current Liabilities
76.300

78.800

73.900

Net Current Assets
123.900

108.000

93.500

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

210.300

191.200

173.400

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

459.000

427.100

322.600

 

 

Other Income

2.600

10.300

1.000

 

 

TOTAL                                     (A)

461.600

437.400

323.600

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw materials

309.700

291.500

212.000

 

 

Power and Fuel Cost

8.600

8.200

7.900

 

 

Employee Cost

39.000

31.900

27.700

 

 

Other manufacturing expenses

15.900

11.500

8.500

 

 

Selling and Administration Expenses

25.200

23.300

20.700

 

 

Miscellaneous Expenses

9.100

14.100

17.100

 

 

Increase/Decrease in Stock

(5.400)

(2.800)

0.400

 

 

TOTAL                                     (B)

402.100

377.700

294.300

 

 

 

 

 

Less

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

59.500

59.700

29.300

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

7.200

5.700

6.400

 

 

 

 

 

 

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

52.300

54.000

22.900

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

13.700

8.600

7.400

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

38.600

45.400

15.500

 

 

 

 

 

Less

TAX                                                                  (I)

12.900

16.600

4.500

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

25.700

28.800

11.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

69.000

52.700

46.900

 

 

 

 

 

Less

APPROPRIATIONS

12.200

12.500

5.200

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

82.500

69.000

52.700

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.51

6.22

2.32

 

 

 

Particulars

 

 

 

31.03.2011

Sales Turnover

 

 

520.000

 

 

 

 

 

Expected Sales (2011-12) : Rs. 650.000 Millions

 

The above information has been parted by Mr. Shailesh Pandhare

 

 

 

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

120.800

125.300

124.500

158.700

Total Expenditure

107.800

117.800

112.400

136.900

PBIDT (Excl OI)

13.000

7.500

12.100

21.800

Other Income

0.100

0.100

0.000

0.000

Operating Profit

13.100

7.600

12.100

21.800

Interest

1.800

1.500

1.700

1.400

PBDT

11.300

6.100

10.400

20.400

Depreciation

2.400

2.600

2.900

2.800

Profit Before Tax

8.900

3.500

7.500

17.600

Tax

3.000

1.300

2.500

6.400

Profit After Tax

5.900

2.200

5.000

11.200

Net Profit

5.900

2.200

5.000

11.200

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
5.57

6.58

3.40

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
8.40

10.63

4.80

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
13.90

17.29

6.42

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.26

0.10

0.14

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.89

0.97

1.09

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.62

2.37

2.26

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History

 

Subject is a manufacturer of engineering plastics with wide applications in the automobile and electrical industries, the Defence, etc. The company is having their manufacturing facilities located at Raigad and Pune in Maharashtra. Subject, formerly Siro Plast Ltd was established in the year 1982 with technical collaboration with Menzolit, Germany. The company set up a plant at Sale, Raigad district, Maharashtra, to manufacture 1200 TPA of sheet moulding compounds (SMCs), 400 TPA of dough moulding compound (DMC) and 1000 TPA of moulded components using SMC and DMC. Since then, the company has come a long way. In April 1989, the company commenced commercial production. In November 1989, the company came out with a public issue to part-finance their project. In May 1995, the company came out with a rights issue for acquiring additional capacities and for installing mould heating / handling system along with the testing and quality control equipment. During 2000-2001 the company successfully developed injection-moulding grades of DMC with low rejection rate in moulding and improved surface finish of moulded components. During the year 2003-2004, the company got breakthrough in switchgear industry by establishing technology of manufacturing halogen-free components and in the same year the company acquired land and building on lease at Pimpri, Pune. During the year 2004-2005, the company commissioned their second plant at Pimpri, Pune. During the year 2007-2008 the company successfully developed 'Surface Conductive', application for SMC and in the same year it also developed 'Head-Lamp' material (DMC), which received approval from the customers' collaboration and also developed in special 'Noise Reduction' application for overseas models of commercial vehicle.

 

 

OPERATIONS:

 

The  Company's performance this year has been that of  consolidation  with small growth in sales of 5%. This is much lower than what was envisaged at the  beginning  of the year, primarily due to  postponement  of  customers' plans  in  all  new businesses / new products which were  targeted  by  the Company. The postponement of customers' plans was on account of world  wide economic crisis which affected almost every Company in India and abroad.

 

In view of the delays communicated by customers, the Company took  prudent action in controlling expenses as well as investments, thereby  maintaining EBIDTA at Rs.59.600 millions.

 

Material cost  showed  some  reduction from 67%  to  66%. However, other variables, including electricity  nullified  this  saving  and   overall contribution was maintained at 27%.

 

Increase in interest rates combined with one time special depreciation  of  tooling had large effect on PBT in spite of maintaining EBIDTA.

 

New  business development activity is being aggressively pursued  and  with overall  revival  of  the  economy  in India  as  well  as  in  the  world, significant improvement should be expected in the coming years.

 

INNOVATION AND TECHNOLOGY DEVELOPMENT:

 

The focus on innovation led to the setting up of the innovation centre. The Company now has a strong technical team of design and tooling engineers. At the innovation  centre, several projects were  successfully  designed  and executed by this competent team.

 

The team designed a bonnet for the Subject Gujarat Tractors on an 'art  to part' basis in 3 months. A NVH canopy for the Generator industry is also in the advanced stage of development and undergoing testing. This can lead  to substantial volume growth.

 

Similarly  the  team designed and delivered a composite body for  the  Fast Action Vehicle in record time for the defence forces.

 

The  team has successfully developed the technology locally to  manufacture seamless  wind  mill  blades in carbon fibre. These blades  for  a  3.5  KW windmill are in pilot production.

 

The  innovation  centre has also designed and developed  a  Drinking  Water Trolley  for  the  National Rural Employment  Guarantee  Scheme  in  Andhra Pradesh. This is in line with the Subject concept of ESOPS. They propose  to promote this product thro' NGO's for remote areas.

 

SEGMENT WISE PERFORMANCE:

 

Business segments continue to be Compound and Components. Components  sales this year will increase due to expected sale of Electra and also components from  the 2000 T press. The sale of Wind Mill Blades started in F-l 1  will open up a new market segment.

 

Summary of F10 performance is as below:

 

Sales growth was to come from New Products in Automotive Industry  thro' Technology  Agreement  with  iNoPlast, Solar dish of  Infinia  and  Electra boxes.  The 1st two did not happen and the tendering of 'electra'  business was  much less than the expectations. So they had to push  existing  products and ended up generating just about 7% growth.

 

Even with this background, by reducing material costs by 1%, they were able to  off  set  major  cost increase in  personnel  area  (wage  agreement  and management staff) to large extent. They achieved EBITDA same as last year of Rs 59.500 millions.

 

However the PBT took an hit due to higher interest costs and an one  time large  depreciation  relating  to  tools made for BHEL,  which  had  to  be depreciated  in this year. With some help on deferred tax account, PAT  was only  10%  lower  from last year at Rs. 25.900 millions and  they  could  maintain  same Dividend as last year.

 

OUTLOOK F-11:

 

The Company has taken up an ambitious target for significant jump in sales through  new  products.  Initiatives  already  taken  give  rise  to   this confidence  and  are  not  dependent entirely  on  customer's  growth,  but substantially on new products.

 

Renewed  buoyancy in Electrical Industry gives confidence of achieving  the growth  budgets  in  Sales  of Compounds. First  quarter  demand  from  all customers  is  already looking up and is strong. New  grades  will  further contribute to growth.

 

Electrical  business which remained a concern last year will grow in a  big way this year.

 

The  Export  Business  which remained low last year  is  showing  signs  of recovery. Besides GE, the Company is also designing and developing products for the medical equipment division of Philips.

 

The  productivity  linked  wage  agreement for a  period  of  4 years  was successfully signed with the workmen.

 

Power availability remains a concern. Rain water harvesting continues  to benefit the plant by reducing water costs at Mangaon plant.

 

SYNERGIES WITH PARENT:

 

Synergies within the Subject Systech Group:

 

They  are  part of the Subject Systech group of companies  in  the  Subject group,  which  aims  to  leverage  the  global  competitiveness  of  Indian companies in the automobile component sector. Companies within the Subject Systech   are   present   in  complementary  businesses   such   as   steel manufacturing,   castings,   stampings,  ferrites,  composites   and   gear manufacturing,  and  provide  engineering  and  design  services,  contract sourcing  services.  They believe that they derive  significant  advantages  of synergies  and cross selling because of presence of the Subject  group  in these businesses. For example, Subject Hinoday, Magnetic Product  division supported  MCL  for  developing a magnetic latch required for  one  of  the medical equipment enclosure designed and manufactured by us. MCL has proposed a signage system for Subject Hinoday Casting division for Urse plant.  MCL has plans to promote this signage system for the Systech group companies as well  as  other  Subject group companies.  This  is  completely  designed, developed and manufactured in-house by the company.

 

Strong Parentage and Brand Value:

 

Subject group is one of the leading industrial houses in India. Forbes has ranked the Subject group in its Top 200 list of the World's Most Reputable Companies  in 2009. It is a widely recognised brand name in India  and  has operations  in  the several key sectors of the Indian economy.  Subject  and Subject (M and M), the parent company and the flagship company of the Subject group  is  one of the leading automotive manufacturers in  India.  M and M  has provided  us financial assistance from time to time. It is also one of  the major  customers.  For example, the Company improved styled,  designed  and manufactured  a complete set of tractor bonnet of 'Shaktiman' for  Subject Gujrat  Tractors.  The  existing sheet metal design  was  replaced  with  a composite   alternative  which  was  aesthetically   better,   functionally beneficial and cost effective. They are working on 3 prestigious projects for various  sectors  of M and M which will demonstrate the  'Design  to  Delivery' capability.

 

They  believe that the association with the Subject group has enabled us  to absorb  its corporate values and principles and adhere to  the  established corporate  governance practices. They also believe that the association  with the  Subject  Group  aids  us in  winning  new  businesses  and  obtaining financial assistance.

 

Subject is one of India’s leading players in the field of composites by providing the best technology, impeccable quality and providing innovative solutions.

 

They offer innovative composite solutions for various industries such as: automotive, electrical, infrastructure, alternate energy and defense. They are the pioneers in India to setup sheet Molding Compound(SMS) and dough Molding Compound (DMC) for compression molding, in addition to many specialized composite manufacturing processes.

 

MCL’s efforts for export foray bore fruits at the start of the new millennium. They have been exporting to reputed global customers like General Electrical’s Health Care and industrial application division. Today Exports constitute close to 20% of sales and are slated to rise significantly in future.

 

The principles that drive Subject in their pursuit of excellence are customer centricity and ‘Quality First’ Approach.

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED ON 31.12.2010

 

Rs. in Millions

Particular

Quarter Ended

Nine Months Ended

 

31.12.2010

31.12.2010

 

 

 

(a) Net Sales / Income from operations

123.700

367.500

(b) Other Operating Income

0.800

3.100

Total Income

124.500

370.600

Expenditure

 

 

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

(2.300)

(0.300)

b) Consumption of raw materials

83.900

247.500

c) Purchase of traded goods

0.000

0.000

d) Employees cost

12.200

35.000

e) Depreciation

2.900

7.900

f) Other expenditure

18.600

55.800

Total

115.300

345.900

Profit from operations before other income, interest and exceptional Items

9.200

24.700

Other income

0.000

0.200

Profit before interest and exceptional Items

9.200

24.900

Profit before deprecation, interest, exceptional items and tax

12.100

32.800

Interest

1.700

5.000

Profit after Interest but before Exceptional Items

7.500

19.900

Exceptional Items

0.000

0.000

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

7.500

19.900

Tax expense

2.500

6.800

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

5.000

13.100

Extra Ordinary Items

0.000

0.000

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

5.000

13.100

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

44.000

44.000

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

--

--

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)

1.13

2.98

(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)

1.12

2.96

Public shareholding

 

 

          Number of shares

2426806

2426806

          Percentage of shareholding

55.10

55.10

 

 

 

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

1977203

1977203

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)

44.90

44.90

 

Notes:

 

  • The above results have been reviewed by the audit committee and taken on record by the board of directors in meeting held on 20.01.2011
  • The statutory auditors have carried out a “Limited Review” of the aforesaid results.
  • The company has allotted 15748 shares to the employees under the employee stock option scheme.
  • The figures of the previous period have been regrouped/ restated wherever necessary to conform to current period’s classification.
  • Investor complaints nos:
  • Opening balance Nil, complaints received 01, complaints disposed off 01, closing balance Nil.

 

 

 

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.44.93

UK Pound

1

Rs.72.43

Euro

1

Rs.63.62

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

---

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

46

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.