MIRA INFORM REPORT

 

 

Report Date :

24.06.2011

 

IDENTIFICATION DETAILS

 

Name :

FOODS AND INNS LIMITED

 

 

Registered Office :

Foods and Inns Building, Sion-Trombay Road, Punjabwadi, Deonar, Mumbai – 400088, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

30.09.2010

 

 

Date of Incorporation :

11.10.1967

 

 

Com. Reg. No.:

11-013837

 

 

Paid-up Capital :

Rs. 13.288 Millions

 

 

CIN No.:

[Company Identification No.]

L55200MH1967PLC013837

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMF03863G

MUMF03844B

MUMF03698C

MUMF03486A

 

 

PAN No.:

[Permanent Account No.]

AAACF0521C

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturers and Exporters of fruit pulp and concentrates in canned and aseptic packing, frozen pulp and vegetables, fruit powders etc.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (58)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 1400000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having fine track. General financial position is good. Trade relations are reported as fair. 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.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

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 :

Foods and Inns Building, Sion-Trombay Road, Punjabwadi, Deonar, Mumbai – 400088, Maharashtra, India

Tel. No.:

91-22-25564326/25564327/25515853/23533104

Fax No.:

91-22-25553612/23533106

E-Mail :

nitin@foodsandinns.com

Website :

www.foodsandinns.com

 

 

Corporate Office :

Dulwich Mansion, 3rd Floor, 224 Tardeo Road Mumbai – 400 007, India

Tel. No.:

91-22-23533104/23533105

Fax No.:

91-22-23533106

 

 

Factory 1 :

Nashik, Maharashtra, India

 

 

Factory 2 :

Chittoor, Andhra Pradesh, India

 

 

Factory 3 :

Valsad, Gujarat, India

 

 

DIRECTORS

 

As On 30.09.2010

 

Name :

Mr. B. C. Dalal

Designation :

Chairman (Alternate to Mr. George Gonszor)

 

 

Name :

Mr. Utsav Dhupelia

Designation :

Vice-Chairman

 

 

Name :

Mr. D. B. Engineer

Designation :

Director

Date of Birth/Age :

02.05.1933

Qualification :

B.A (Hons), LLB, Solicitor & Advocate (High Court, Bombay )

Date of Appointment :

19.08.1992

Other Directorship :

  • Atlas Copco Limited
  • Forvol International Services Limited
  • Fiora Services Limited
  • Forbes and Company Limited
  • Nilkamal Limited
  • PCS Technology Limited
  • Protos Engineering Company Private Limited
  • S.P. Sanghi Airconditioning Private Limited
  • Welspun India Limited
  • Zoroastrian Investment Corporation Private Limited
  • Zuari Industries Limited

 

 

Name :

Mr. C. M. Maniar

Designation :

Director

 

 

Name :

Mr. R. Simkins

Designation :

Director

 

 

Name :

Mr. D. D. Trivedi

Designation :

Director

Date of Birth/Age :

15.03.1932

Qualification :

B.A, M. Com

Date of Appointment :

26.08.1987

Other Directorship :
  • Wires and Fabriks (SA) Limited
  • Asim Exports International Limited
  • Cyclic Chemicals Limited

 

 

Name :

Mr. Milan Dalal

Designation :

Director

 

 

Name :

Ms. Harsha Bangari

Designation :

Director (Nominee of Export-Import Bank of India)

 

 

Name :

Mr. George Gonszor

Designation :

Director

 

 

Name :

Mr. Anup Ghosh

Designation :

Senior Manager – International Division

 

 

KEY EXECUTIVES

 

Name :

Mr. B. C. Dalal

Designation :

Chairman

 

 

Name :

Mr. Utsav Dhupelia

Designation :

Member

 

 

Name :

Mr. Milan Dalal

Designation :

Member

 

 

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

 

 

Individuals / Hindu Undivided Family

520,508

35.87

Bodies Corporate

143,467

9.89

Sub Total

663,975

45.76

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

663,975

45.76

(B) Public Shareholding

 

 

(1) Institutions

 

 

Insurance Companies

150

0.01

Foreign Institutional Investors

21,000

1.45

Sub Total

21,150

1.46

(2) Non-Institutions

 

 

Bodies Corporate

156,973

10.82

Individuals

 

 

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

332,289

22.90

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

96,479

6.65

Any Others (Specify)

180,174

12.42

Non Resident Indians

3,565

0.25

Directors & their Relatives & Friends

176,520

12.17

Clearing Members

89

0.01

Sub Total

765,915

52.78

Total Public shareholding (B)

787,065

54.24

Total (A)+(B)

1,451,040

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)

1,451,040

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Exporters of fruit pulp and concentrates in canned and aseptic packing, frozen pulp and vegetables, fruit powders etc.

 

 

Products :

Item Code No.

Product Description

081290.02

Mango Pulp

071190.02

Canned Vegetable

040811.00

Egg Powder

 

 

 

 

PRODUCTION STATUS (As On 30.09.2010)

 

Particulars

Unit

 

Installed Capacity

Actual Production

Fruit Powder

 

 

300000

301851

Fruit Pulp, Concentrate and Frozen Pulp

 

 

55000000

41043367

Canned Veg. Pickles, Mango Chutney and Frozen Vegetables

 

 

2500000

96970

Other Powder

 

 

300000

76518

Others 

 

 

--

0

 

Notes:

a)       The installed capacity being a technical matter and figures of production and consumption are taken as Certified by Directors and is not verified by the Auditors.

b)       The figures of Sales do not include Self consumption, losses, samples and issues for research and development.

c)       The installed capacity of Fruits and other powder is 3,00,000 Kgs per annum.

d)       Others is nothing but trading of other items.

 

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :
  • Andhra Bank
  • State Bank of India
  • Bank of Maharashtra
  • Export-Import Bank of India
  • Corporation Bank
  • Bank of India

 

 

Facilities :

Secured Loans

30.09.2010 (Rs. In Millions)

30.09.2009 (Rs. In Millions)

From Banks:

 

 

Packing Credit / Foreign Bills Purchased

[Of the above, a sum of Rs.1085.255 millions (Rs.858.858 millions) Secured by hypothecation

of stocks of Raw Materials, Stock-in-Process, Finished Goods, Cans, etc. meant for

export, a charge over the entire current assets of the Company including receivables/

book debts, both present and future, and stores and spares, lodgement of confirmed

contracts and irrevocable letters of credit and ECGC Packing Credit Guarantee cover;

a sum of Rs. 40.137 millions (Rs. 19.969 millions) is secured by hypothecation of stocks and

receivables/book debts of the Company and by pari passu second charge on fixed

assets of the Company at its Bulsar, Chittoor and Nasik Unit; and secured by Land

aggregating to 9.57 acres at Chittoor, Andhra Pradesh]

1125.392

878.828

Open Cash Credit

91.651

61.507

Working Capital Term Loan

[b and c are secured against hypothecation of stocks of Raw Materials, Stock-in-

Process, Finished Goods and Packing Materials]

[All the above Loans including from the Banks are also secured by a personal

Guarantee of one Director, a Shareholder and an individual (by one consortium bank)

and charge on all the Fixed Assets and Current Assets including book debts of the

Company, both present and future]

0.000

0.810

Term Loans

[Secured against hypothecation of specific assets purchased under the related

Term Loans and further second residual charge on Current Assets and personal

guarantee of one Director and a Shareholder]

[Amount due within one year Rs.51.893 millions, (Previous Year Rs.51.443 million)]

256.001

290.119

Vehicle Loans

[Secured against specific vehicles purchased under the related vehicle Loan]

[Amount due within one year Rs.1.436 million (Previous Year Rs.1.699 million)]

1.968

2.448

Loans against Fixed Deposit

[Secured against Fixed Deposit of Rs.5.000 million (Previous Year Rs.Nil)]

4.500

0.000

From Others:

 

 

Intercorporate Deposits

[Second charge on residual value over the borrower's land and

other immovable property having book value of Rs. Nil (Previous Year

Rs.110.053 millions)]

0.000

50.000

Total

1479.512

1283.712

 

 

Unsecured Loans

30.09.2010 (Rs. In Millions)

30.09.2009 (Rs. In Millions)

Fixed Deposits from Public and Shareholder

84.195

35.698

Loans from Directors

25.720

38.272

Intercorporate Deposits

158.500

53.445

Interest Accrued and Due on Loans / Intercorporate Deposits

1.681

1.808

Total

270.096

129.223

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B. S. Mehta and Company

Chartered Accountant

Address :

11/13, Botawala Building, 2nd Floor, Horniman Circle, Fort, Mumbai - 400 001, Maharashtra, India

 

 

Advocates and Solicitors :

 

Name :

Crawford Bayley and Company

Address :

State Bank Building, N.G.N. Vaidya Marg, Mumbai - 400 023, Maharashtra, India

 

 

Associate :

  • Finns Frozen Foods (India) Limited

 

 

Subsidiaries :
  • Dravya Finance Limited
  • Asim Export International Limited

 

 

Entities on which Key Managerial Personnel has control :

 
  • Muller and Phipps (India) Limited
  • Cyclic Chemicals Limited
  • Western Press Private Limited
  • Trans Union Courier
  • Western Securities-A Division of Western Press Private Limited

 

 

CAPITAL STRUCTURE

 

As On 30.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6000000

Equity Shares

Rs. 10/- each

Rs. 60.000 Millions

300000

Redeemable Preference Shares

Rs. 100/- each

Rs. 30.000 Millions

 

Total

 

Rs. 90.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1328820

Equity Shares

Rs. 10/- each

Rs. 13.288 Millions

 

 

 

 

 

Note:

(During the year, the Company has allotted 1,03,000 (Nil) Equity Shares of Rs.10 each against Preferential Convertible Warrants at a Premium of Rs.144 per Share)

 

[Includes 7,00,000 (7,00,000) Equity Shares issued as Fully Paid Bonus Shares by Capitalisation of General Reserve]

 

After 25.03.2011

 

Authorised Capital : Rs. 30.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs. 14.510 Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

30.09.2010

30.09.2009

30.09.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

13.288

12.258

12.258

2] Share Application Money

0.000

0.000

0.000

3] Amount for Preferential Convertible Warrants

4.705

8.671

0.000

4] Reserves & Surplus

343.257

315.621

256.852

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

361.250

336.550

269.110

LOAN FUNDS

 

 

 

1] Secured Loans

1479.512

1283.712

1136.287

2] Unsecured Loans

270.096

129.223

114.178

TOTAL BORROWING

1749.608

1412.935

1250.465

DEFERRED TAX LIABILITIES

51.789

41.129

41.279

 

 

 

 

TOTAL

2162.647

1790.614

1560.854

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

733.138

654.824

531.153

Capital work-in-progress

63.058

90.228

112.908

 

 

 

 

INVESTMENT

21.388

21.389

21.670

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1914.539

1074.037

649.632

 

Sundry Debtors
374.810

310.269

403.036

 

Cash & Bank Balances
64.001

48.218

61.708

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
256.998

205.304

190.168

Total Current Assets
2610.348

1637.828

1304.544

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
970.026

510.850

278.988

 

Other Current Liabilities
283.264

88.796

120.765

 

Provisions
11.995

14.009

9.668

Total Current Liabilities
1265.285

613.655

409.421

Net Current Assets
1345.063

1024.173

895.123

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2162.647

1790.614

1560.854

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

30.09.2010

30.09.2009

30.09.2008

 

SALES

 

 

 

 

 

Income

2085.741

1892.764

1647.851

 

 

Income from Operations

87.172

79.275

95.163

 

 

Other Income

3.356

1.692

4.780

 

 

TOTAL                                     (A)

2176.269

1973.731

1747.794

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials

1172.837

867.435

930.973

 

 

Manufacturing and other expenses

710.800

786.855

594.724

 

 

Employee cost

71.933

70.434

59.313

 

 

TOTAL                                     (B)

1955.570

1724.724

1585.010

 

 

 

 

 

Less

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

220.699

249.007

162.784

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

154.020

143.562

90.844

 

 

 

 

 

 

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

66.679

105.445

71.940

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

41.569

32.216

22.448

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

25.110

73.229

49.492

 

 

 

 

 

Less

TAX                                                                  (I)

8.626

10.988

28.138

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

16.484

62.241

21.354

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

31.055

21.395

52.192

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

General Reserve

10.000

50.000

50.000

 

 

Proposed Dividend

2.392

2.206

1.839

 

 

Tax on Dividend

0.397

0.375

0.312

 

BALANCE CARRIED TO THE B/S

34.750

31.055

21.395

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1339.429

1161.402

1143.032

 

TOTAL EARNINGS

1339.429

1161.402

1143.032

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Packing materials

102.051

76.935

13.451

 

 

Raw Materials

7.560

4.393

0.000

 

 

Plant and machinery

5.958

3.718

24.057

 

TOTAL IMPORTS

115.569

85.046

37.508

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

- Basic

12.90

50.78

17.42

 

- Diluted

12.41

49.45

17.42

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

31.12.2010

1st Quarter

31.03.2011

2nd Quarter

Net Sales

 

545.940

736.460

Total Expenditure

 

504.350

687.840

PBIDT (Excl OI)

 

41.590

48.620

Other Income

 

0.630

0.590

Operating Profit

 

42.220

49.210

Interest

 

43.790

36.970

PBDT

 

(1.570)

12.240

Depreciation

 

8.150

7.960

Profit Before Tax

 

(9.730)

4.280

Tax

 

3.010

0.270

Profit After Tax

 

(12.740)

4.010

Net Profit

 

(12.740)

4.010

 

KEY RATIOS

 

PARTICULARS

 

 

30.09.2010

30.09.2009

30.09.2008

PAT / Total Income

(%)
0.76

3.15

1.22

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.20

3.87

3.00

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
0.75

3.19

2.70

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.07

0.22

0.18

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
8.35

6.02

6.17

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.06

2.67

3.19

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

OPERATIONS, MANAGEMENT DISCUSSION AND ANALYSIS:

During the year, the turnover of the Company was Rs.2086.200 millions as compared to Rs. 1893.100 millions for the year ended 30.09.2010 recording an increase of 10.20% over earlier year. The profit before tax has been decreased to Rs.25.100 millions from Rs.73.300 millions.

 

The Company’s export during the year was Rs 1381.200 millions (Rs.1221.800 millions) and domestic sale was Rs.704.600 millions (Rs 670.900 millions). This translates into a ratio of 66.22% to 33.78% (64.55% to 35.45%) between exports and domestic sales.

 

FUTURE PROSPECTS:

The Company has planned next 3 years expansion programme for expanding capacities of its existing fruit puree and concentrates lines because its existing capacities during the season are fully utilised. The Company is also considering new projects and innovative packaging options in the fruit and vegetable processing sectors where it has its core strength.

 

Despite recession in many of the markets where the Company is selling its products the demand for its products are growing due to high standard quality, service, and aggressive marketing efforts.

 

 

Management Discussion and Analysis Report

1. History:-

• 1940s: Started with canning facilities to supply canned foods to the Allied Armed forces during World War II.

 

• 1971: The Company went public and created facility for spray dried Egg powder to supply Indian armed forces which was the 1st in South East Asia.

 

• 1983: Company diversified into manufacturing tropical fruit pulps with the first fully automated canning lines.

 

• 1995: Setup frozen fruit and vegetable lines in Nasik to take advantage of the growing demand for ethnic snacks and vegetables in international markets.

 

• 1999: 1st in India to install skid mounted, PLC operated Aseptic processing and packaging line.

 

• 2001-2007: Added 5 more Aseptic processing lines with Concentration facilities during next 6 years.

 

• 2008: Setup a new Aseptic Processing facility exclusive for Alphonso and high Aroma single strength Purees. The plant layout and design was done with the technical assistance of leading Japanese Group.

 

• Same year we initiated the NPOP (Organic Mango) program for Alphonso Mango.

 

• 2010: Certified by Control Union (NL) for Organic Alphonso Mango Puree.

 

• 2011: New custom built spray drying powder plant is being commissioned to meet the growing demand in the domestic and international market for fruit and vegetable powders.

 

Overview of the Business:-

• Foods and Inns Limited, a professionally managed multi location public limited company, incorporated in 1971.

 

• Total Capacity: 100,000 MT + (Raw Material)

 

• Manufacturing Facility: 6 (Mumbai 1, Nasik 1, Valsad 1, Chittoor 3)

 

• Warehousing Facility: 8 ( Domestic and International)

 

• Owner Ship: Public Limited.

 

• Principal Division: Aseptic, Canning, and Spray drying.

 

• Certifications: IS0 22000, CSR, SGF, USFDA, Halal, SGP, Kosher.

 

Financial Review:-

During the year, the turnover of the company was Rs. 2086.200 Millions as compared to Rs. 1893.100 Millions for the year ended 30.09.2010 recording an increase of 10.20% over earlier year. The profit before tax has been decreased to Rs. 25.100 Millions from Rs.73.300 Millions.

 

The decline in profitability was due to Totapuri Mango Crop failure which resulted in the company buying raw materials at over 100% higher than previous year. The cost escalation could not be passed on to the buyers. Further the Rupee appreciation against foreign currency lowered the realization which resulted in lower margins.

 

Capital expenditure:-

During the year the company made capital investments of Rs. 120.000 Millions at its manufacturing facilities in Chittoor and Nasik for enhancing the capacities to take advantage of growing Domestic demand of our products.

 

 

Fixed Assets:

  • Land
  • Factory building
  • Administrative Building
  • Plant and machinery
  • Office equipments / furniture and fixtures / computers
  • Vehicles
  • Patents and trademarks
  • Generators
  • Forklift accessories

 

 

As per website details

 

Profile:

Subject a professionally managed multinational public limited company, incorporated in 1971 is a leading internationally reputed manufacturers and exporters of fruit pulp and concentrates in canned and aseptic packing, frozen pulp and vegetables, fruit powders etc. The company enjoys a lion’s share of the fruit pulp and concentrate world market.



 

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.72.09

Euro

1

Rs.64.21

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

58

 

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.