MIRA
INFORM REPORT
|
Report Date : |
01.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
AKZO NOBEL INDIA LIMITED |
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|
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|
Formerly Known As : |
ICI INDIA LIMITED |
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Registered Office : |
Geetanjali
Apartment, 1st floor, 8-B, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
12.03.1954 |
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Com. Reg. No.: |
21-21516 |
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CIN No.: [Company
Identification No.] |
L24292WB1954PLC021516 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMI04848E MUMI05763C |
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|
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PAN No.: [Permanent
Account No.] |
AAACI6297A |
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|
Legal Form : |
Public
Limited Liability Company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer
and Marketing of Paints, Speciality Chemicals, Catalysts, Nitrocellulose,
Rubber Chemicals, Pharmaceuticals, Adhesives and Industrial Starch. |
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 40000000 |
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|
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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 and a reputed 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 regular and as per commitments. 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 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) |
|
|
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 : |
Geetanjali
Apartment, 1st floor, 8-B, |
|
Tel. No. |
91-33-22267462 |
|
Fax No. |
91-33-22277925 |
|
E-Mail |
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|
Website |
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Corporate
Office / Factory : |
10th
Floor, |
|
Tel. No.: |
91-124-2540400 |
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Fax No.: |
91-124-2540849 |
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E-Mail : |
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Factory 2 : |
Located at · Mohali,
· ·
Thane, |
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Headquarters
: |
Located at Gurgaon, Haryana |
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Research and
Technology Centre : |
Located at Thane, |
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Branches : |
National Starch And Chemicals Plot
No. 1/1 TTC Industrial Area, |
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Tel. No.: |
91-22-27787352-53 |
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Fax No.: |
91-22-27780025 |
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E-Mail : |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Aditya
Narayan |
|
Designation : |
Chairman |
|
Age |
50 years |
|
Qualification |
MS, LLB, B.E. |
|
Experience |
16 years |
|
Date
of Joining |
01.05.1994 |
|
Previous
Employment |
·
Chand Chaap Fertilisers and Chemicals Limited ·
·
BHP
Billiton Marketing Services |
|
|
|
|
Name: |
Mr. Amit Jain |
|
Designation: |
Managing Director |
|
Date of
Appointment: |
01.06.2009 |
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|
|
|
Name: |
Mr. Rajiv Jain |
|
Designation: |
Managing Director |
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|
|
|
Name : |
Mr. A J Britt |
|
Designation : |
Director |
|
|
|
|
Name: |
Mr. R.
Gopalakrishnan |
|
Designation: |
Director |
|
Other Directorship
: |
· Rallis · Tata Chemicals
Limited · Tata Sons
Limited · Tata Motors
Limited · Tata Power
Company Limited · Tata
Teleservices Limited · Tata AutoComp
Systems Limited · Tata
Technologies Limited · Castrol · ABP Private
Limited · IMACID ·
Advinus
Therapeutics Private Limited |
|
|
|
|
Name: |
Ms. Renu S Karnad
|
|
Designation: |
Director and
Chairperson |
|
|
|
|
Name : |
Mr. Nihal Kaviratne CBE |
|
Designation : |
Director |
|
Date of Appointment: |
30.03.2009 |
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|
|
|
Name: |
Mr. M R Rajaram |
|
Designation: |
Whole time
Director and Chief Financial Officer |
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Qualification: |
ACA, B.Com |
|
Date of
Appointment: |
1.101984 |
|
|
|
|
Name: |
Mr. M V Subbiah |
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Designation: |
Director |
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Name: |
Ms Kerris Bright |
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Designation: |
Director |
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|
|
|
Name: |
Dr Sanjiv Misra |
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Designation: |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R Guha |
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Designation : |
Secretary |
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Audit Committee : |
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Remuneration and Nominations Committee : |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
|
No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
10 |
- |
|
|
10 |
- |
|
|
|
|
|
|
20,776,213 |
56.40 |
|
|
20,776,213 |
56.40 |
|
Total shareholding of Promoter and Promoter Group (A) |
20,776,223 |
56.40 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3,081,407 |
8.37 |
|
|
33,185 |
0.09 |
|
|
276 |
- |
|
|
4,135,065 |
11.23 |
|
|
399,452 |
1.08 |
|
|
600 |
- |
|
|
600 |
- |
|
|
7,649,985 |
20.77 |
|
|
|
|
|
|
4,486,404 |
12.18 |
|
|
|
|
|
|
3,654,311 |
9.92 |
|
|
114,963 |
0.31 |
|
|
152,445 |
0.41 |
|
|
22,551 |
0.06 |
|
|
126,450 |
0.34 |
|
|
3,444 |
0.01 |
|
|
8,408,123 |
22.83 |
|
Total Public shareholding (B) |
16,058,108 |
43.60 |
|
Total (A)+(B) |
36,834,331 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
36,834,331 |
100.00 |
(1) Indian
Bodies Corporate
Foreign Financial Institutions|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
|
|
Bodies corporate |
|
|
Directors or relatives of Directors |
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|
Other top fifty shareholders |
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|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
and Marketing of Paints, Speciality Chemicals, Catalysts, Nitrocellulose,
Rubber Chemicals, Pharmaceuticals, Adhesives and Industrial Starch. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
952
(Approximately) |
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|
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Bankers : |
· Central Bank of · Citibank NA · Deutsche Bank AG · Hongkong and
Shanghai Banking Corporation · Standard
Chartered Bank · HDFC Bank Limited · State Bank of |
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|
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Banking
Relations : |
- |
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|
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Auditors : |
|
|
Name : |
BSR and
Associates Chartered
Accountant |
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|
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Holding Company: |
Imperial Chemical Industries Limited, |
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Ultimate Holding
Company: |
Akzo Nobel N.V |
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Fellow Subsidiary: |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
41690000 |
Equity Shares |
Rs.10 each |
Rs.416.900
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
36834331 |
Equity Shares |
Rs.10 each |
Rs.368.000
Millions |
1. Of the above
equity shares:-
(a) 8,532,667 were
allotted as fully paid up bonus shares by capitalisation of share premium and reserves
(2008-09: 8,532,667 shares)
(b) 2,968,824 were
issued on part conversion of debentures. (2008-09: 2,968,824 shares)
(c) 8,918,121 were
issued as fully paid up otherwise than for cash, issued pursuant to a contract.
(2008-09: 8,918,121shares)
(d) 20,776,213
shares are held by the holding company Imperial Chemical Industries Limited,
2. During the
year, 1,235,195 shares were bought back. All the shares purchased have been
extinguished by 31 March 2010. (2008-09 : 310,424 shares were bought back
during the year, of which 173,472 were extinguished by 31 March 2009 and
remaining 136,952 shares were extinguished on 8 April 2009)
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 |
368.000 |
380.700 |
383.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9553.000 |
9330.000 |
7245.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9921.000 |
9710.700 |
7629.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
21.000 |
58.700 |
94.800 |
|
|
|
|
|
|
|
|
TOTAL |
9942.000 |
9769.400 |
7724.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1381.000 |
1330.600 |
1332.500 |
|
|
Capital work-in-progress |
23.000 |
16.200 |
104.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
9602.000 |
9152.100 |
6926.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
972.000
|
1008.300 |
1239.500 |
|
|
Sundry Debtors |
808.000
|
756.500 |
1040.000 |
|
|
Cash & Bank Balances |
143.000
|
147.300 |
169.900 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
801.000
|
913.900 |
544.300 |
|
Total
Current Assets |
2724.000
|
2826.000 |
2993.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2023.000
|
1735.000 |
|
|
|
Other Current Liabilities |
213.000
|
283.800 |
2659.700 |
|
|
Provisions |
1552.000
|
1536.700 |
972.700 |
|
Total
Current Liabilities |
3788.000
|
3555.500 |
3632.400 |
|
|
Net Current Assets |
(1064.000)
|
(729.500) |
(638.700) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9942.000 |
9769.400 |
7724.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9386.000 |
9001.000 |
9301.400 |
|
|
|
Other Income |
1047.000 |
962.100 |
376.400 |
|
|
|
TOTAL (A) |
10433.000 |
9963.100 |
9677.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials
Consumed |
4826.000 |
5098.500 |
5516.800 |
|
|
|
Other
Expenditure |
3384 |
2829.800 |
2815.000 |
|
|
|
Exceptional
items |
0.000 |
(1994.900) |
187.300 |
|
|
|
TOTAL (B) |
8210.000 |
5933.400 |
8519.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2223.000 |
4029.700 |
1158.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
11.000 |
29.300 |
29.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2212.000 |
4000.400 |
1129200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
212.0000 |
213.300 |
225.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2000.000 |
3787.100 |
904.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
407.000 |
841.200 |
302.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1593.000 |
2945.900 |
602.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5924.000 |
4430.000 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
760.0000 |
740.0000 |
NA |
|
|
|
Proposed Dividend |
589.000 |
609.000 |
NA |
|
|
|
Tax on Proposed Dividend |
98.000 |
104.000 |
NA |
|
|
|
Provision for dividend no longer required written back |
(1.000) |
(1.000) |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
6071.000 |
5924.000 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.000 |
3.200 |
56.600 |
|
|
|
Commission Earnings |
0.000 |
0.000 |
8.600 |
|
|
|
Other Earnings |
5.000 |
6.700 |
3.400 |
|
|
TOTAL EARNINGS |
5.000 |
9.900 |
68.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
671.000 |
768.000 |
888.300 |
|
|
|
Capital Goods |
8.000 |
29.700 |
9.400 |
|
|
|
Others |
120.000 |
121.800 |
445.700 |
|
|
TOTAL IMPORTS |
799.000 |
919.500 |
1343.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
42.59 |
77.02 |
15.16 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
2849.300 |
2415.900 |
3007.000 |
|
Total Expenditure |
2390.300 |
2112.700 |
2698.900 |
|
PBIDT (Excl OI) |
459.000 |
303.200 |
308.100 |
|
Other Income |
184.300 |
198.800 |
102.100 |
|
Operating Profit |
643.300 |
502.000 |
410.200 |
|
Interest |
(3.100) |
-1.700 |
00 |
|
Exceptional Items |
0.000 |
0.000 |
112.800 |
|
PBDT |
646.400 |
503.700 |
523.000 |
|
Depreciation |
52.300 |
54.800 |
55.300 |
|
Profit Before Tax |
594.100 |
448.900 |
467.700 |
|
Tax |
154.700 |
83.700 |
84.000 |
|
Reported PAT |
0.000 |
0.000 |
0.000 |
|
Extraordinary Items |
439.400 |
365.200 |
383.700 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
439.400 |
365.200 |
383.70 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
15.26
|
29.57
|
6.22 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.31
|
42.07
|
9.72 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
52.56
|
91.11
|
20.90 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.39
|
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.38
|
0.37
|
0.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.72
|
0.79
|
0.82 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject a
subsidiary of Imperial Chemical Industries Plc of
BUSINESS
ENVIRONMENT
After
a sluggish start, the Indian economy picked up momentum in the second half of
the year under review. The estimated GDP growth in 2009-10 was over 7%
(previous year 6.7%); the Index of Industrial Production also indicates a
growth of around 10% in 2009-10, against previous year's 2.8%. The Union Budget
for 2010-11 has, as widely anticipated, partially withdrawn some of the
'stimulus measures' introduced in 2008-09 in the wake of improvement in
economic environment, besides re-adjusting corporate tax rates. A road map for
implementing the new Direct Taxes Code and the Goods and Services Tax with
effect from 1 April 2011 has also been laid out. RBI's macro economic forecast
for the fiscal year 2010-11 is a GDP growth at 8% with an upward bias, assuming
normal monsoon and moderate inflation. The credit policy announced by the RBI
in April 2010 factors in the above outlook and has initiated measures to adjust
interest rates to contain inflationary pressures.
FINANCE
AND ACCOUNTS
Total
income for the year at Rs.10433 millions was up by 5% while the PBT at Rs.2000
millions grew by 12% over the previous year. PAT for the year at Rs.1593
millions is however not comparable with the previous year's Rs. 2946 millions
because of exceptional items. Keeping in view the current year's performance
and other relevant factors, the Board has recommended a dividend of Rs.16.00
per share for the year 2009-10 (same as in the previous year) which will be
paid after the approval of the members at the forthcoming Annual General
Meeting.
No
public deposits were accepted by the Company during the year. Unclaimed
dividends amounting to Rs.3 millions were remitted into the Investor Education
and Protection Fund of the Central Government as required under section 205C of
the Companies Act, 1956.
SIGNIFICANT
DEVELOPMENTS
After
obtaining all necessary approvals, the name of the Company has been changed to
Akzo Nobel India Limited. This change reflects the alignment of the Company
with the AkzoNobel Group which had acquired Imperial Chemical Industries PLC
(ICI) worldwide.
SHARE
BUYBACK
The
share buyback through market operations, approved by the members on 19 December
2008 was closed on
18
December 2009, after buying back a total of 1.38m shares, constituting 3.6% of
the pre-buyback paid up capital of the Company, spread over two financial years
2008-09 and 2009-10. The premium paid over the face value of the shares bought
back during the year and other costs of the buyback amounting to Rs 684m have
been adjusted against General Reserve. In addition, as required under the
Companies Act 1956, a Capital Redemption Reserve of Rs.12m has been created by
adjustment to the General Reserve.
MANAGEMENT
DISCUSSION AND ANALYSIS
Paints
The
Company's Paints business segment consists of Decorative and Refinish
businesses. In the early part of the financial year, the business took a cautious
approach to protect its profitability. Segment sales for the year grew 4% while
segment profit grew by 26%, on the back of savings in raw materials costs,
improved mix and innovation. In Decorative Paints business, the Company
continued to invest in Retail Modernization which was started last year under
the brand Dulux Decorator Centre. A new initiative for improving the Company's
visibility in the retail segment called Visual Merchandising was launched
during the year, providing world class visibility elements to its dealers to
differentiate their outlets.
In
Refinish Paints business, the Company initiated focus on new emerging segment
'Mid Tier PU' and revamped the Brand Strategy for 'Eterna' with clear market
segmentation. The business continued its focus on demand generation through
programmes like 'The Great Finishers Club', colour workshops and training in
col matching skills for painters.
Having
created a strong growth platform in the previous year, the outlook for the
business segment in the new financial year is positive in the backdrop of
revived economic conditions. The government's thrust on infrastructure
development and the extension of the interest subsidy scheme on small
individual housing loans is likely to improve the sentiments in the real estate
sector, which in turn could help the paints industry.
The
business segment has positioned itself to target growth ahead of market in the
next few years and has been building capability for taking advantage of new
opportunities. The key aspects of the growth strategy are to place customers'
interests first and empower its people, besides operating in a sustainable
manner.
However,
volatility in crude oil prices and exchange fluctuations may adversely impact
input costs, which will be addressed through innovation and value creation
plans.
Others
This
segment consisting of the trading operations in Surface Chemistry and National
Starch products registered a sales growth of 6% and profit growth of 18% over
the previous year.
FIXED ASSETS
·
Land
- Leasehold
- Freehold
·
Buildings
·
Plant
and Machinery
·
Plant
and Machinery – under operating lease
·
Rolling
stock, motor vehicles etc.
·
Furniture,
fittings and equipment
·
Data processing
equipment
·
Intangible
assets
·
Patents,
trademarks, knowhow etc.
WEB SITE DETAILS
PROFILE
Subject manufactures and markets paints, speciality chemicals, adhesives and starch.
With an employee strength of about 900, Subject's manufacturing sites, business
and sales offices and distribution network span the length and breadth of the
country.
The Subject story began way back in 1911 when Brunner Mond
and Co, one of the four companies that combined in 1926 to form ICI in
Subject's manufacturing activities in
The company also commissioned its catalyst business at Panki in 1984.
The Subject Research and Technology Centre was established in Thane in 1976 and a Crop Protection Chemicals and Pharmaceuticals unit came up in Ennore, near Chennai in 1978.
CONSOLIDATION AND RESTRUCTURING
In 1984, the ICI group companies in
Nalco Chemicals India Limited was formed in 1987 with Nalco
Chemical Company
The first phase of Subject's restructuring was completed in 1993
with the divestment of the seeds, fibres and fertilizers businesses while the
agrochemicals business was transferred to a joint venture with Zeneca Limited
of
1996 saw the establishment of a joint venture, Initiating
Explosives Systems India Limited, with The Ensign-Bickford Company of the
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.45.18 |
|
|
1 |
Rs.72.79 |
|
Euro |
1 |
Rs.62.15 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.