MIRA
INFORM REPORT
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Report Date : |
18.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
VTX INDUSTRIES LIMITED (w.e.f. 01.05.2011) |
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Formerly Known As : |
VIJAYESHWARI TEXTILES LIMITED |
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Registered Office : |
2/185, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
05.09.1953 |
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Com. Reg. No.: |
18-000248 |
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CIN No.: [Company
Identification No.] |
L17111TZ1953PLC000248 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBV03050F |
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PAN No.: [Permanent
Account No.] |
AAACV6388F |
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Legal Form : |
Subject is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer and Marketer of Cotton and Polyester Texturised Yarns. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (44) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 5220000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to be
slow but correct. 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) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
2/185, |
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Tel. No.: |
91-422-2214025 / 2216730 |
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Fax No.: |
91-422-2213488 |
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E-Mail : |
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Websites: |
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Corporate Office/Branches (Madeups Division) : |
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Administrative Office : |
1088, |
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Tel. No.: |
91-422-2252661 |
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Fax No.: |
91-422-2251538 |
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E-Mail : |
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Factory (Spinning Division) : |
Pulliampatti, Via Pollachi, |
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Tel. No.: |
91-422-2214025 / 2216730 |
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Fax No.: |
91-422-2213488 |
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E-Mail : |
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Factory (Weaving Division): |
Arakulam, Palladam |
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Factory (Processing
Division): |
SIPCOT, Industrial Complex, Perundurai, |
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Branches : |
Link Intime India Private Limited (formerly known as Intime Spectrum Registry Limited) “Surya” 35 May |
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Abroad Offices : |
Tel. No. :+1-203-6854413 Fax No. :+1-212-6589319
Tel. No. : 0044 (0) 2087472013 Fax No. : 0044 (0) 208 747 2011
Tel No.: +44-208-7498070 Fax No.: +442087499299
Tel No.: +61-0403-117333 |
DIRECTORS
As on : 16.03.2010
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Name |
Mr. K. Rajagopal |
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Designation |
Chairman and Managing Director |
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Name |
Mr. A. L. Ramchandra |
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Designation |
Managing Director |
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Name |
Mr. N. Balakrishnan |
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Designation |
Director |
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Name |
Mr. R. Jayanthi Ramchandra |
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Designation |
Joint Managing Director |
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Name |
Mr. V. Dharmaraj |
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Designation |
Director |
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Qualification |
BA B.L. |
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Date of Appointment |
11.01.1991 |
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Other Directorship |
Sri Namagiri Lakshmi Finance and Chit Fund (Private) Limited |
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Name |
Mr. K. V. Narayanan |
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Designation |
Director |
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Date of Appointment : |
28.04.2005 |
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Other Directorship : |
Lakshmi Apparels and Wovens Limited |
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Name |
Mr. Durai Ramaswamy |
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Designation |
Director |
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Date of Appointment : |
19.03.1997 |
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Other Directorship : |
Sakthi Synthetic Gems Limited |
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Name |
Mr. M. D. Selvaraj |
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Designation |
Director |
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Qualification |
M.Com., MBA, FCS |
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Date of Appointment |
01.11.2004 |
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Other Directorship |
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Name |
Mr. P. Vijay Raghunath |
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Designation |
Director |
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Qualification |
B.Com, B.L. |
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Date of Appointment |
28.06.2004 |
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Other Directorship |
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Name |
Mr. K Salvaraj |
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Designation |
Director |
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Date of Appointment : |
23.07.2009 |
KEY EXECUTIVES
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Name : |
Mr. S. Suresh |
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Designation : |
Company Secretary |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 01.10.2010
|
Category of shareholder |
Total Number of shares |
Total shareholding as a percentage of total number of
shares |
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Shareholding of Promoter and Promoter Group |
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Indian |
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Individuals / Hindu undivided
family |
820520 |
4.52 |
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Bodies Corporate |
7845074 |
43.18 |
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Sub-Total (A) (1) |
8665594 |
47.69 |
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Foreign |
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Sub-Total (A) (2) |
-- |
- |
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Total shareholding of Promoter and Promoter Group (A) =
(A) (1) + (A) (2) |
8665594 |
47.69 |
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Public shareholding |
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Institutions |
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Financial Institutions / Banks |
1501150 |
8.26 |
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Sub –Total (B) (1) |
1501150 |
8.26 |
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Non-Institutions |
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Bodies Corporate |
3868834 |
21.29 |
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Individuals |
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i. Individuals shareholders
holding nominal share capital upto Rs. 0.100 million |
2273563 |
12.51 |
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Ii. Individual shareholders
holding nominal share capital in excess of Rs. 0.100 million |
1631354 |
8.98 |
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Any other (specify) |
228745 |
1.23 |
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i. Non-Resident Indians |
132541 |
0.73 |
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ii. Clearing Members |
44142 |
0.24 |
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iii. Hindu Undivided Families |
39115 |
0.22 |
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iv. Market Maker |
12947 |
0.07 |
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Sub –Total (B) (2) |
8002496 |
44.04 |
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Total Public shareholding (B) = (B) (1) + (B)
(2) |
9503646 |
52.31 |
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GRAND TOTAL (A) + (B) + (C) |
18169240 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Marketer of Cotton and Polyester Texturised Yarns. |
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Products : |
Cotton and Polyester Texturised Yarns
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PRODUCTION STATUS (as on 31.03.2009 and 31.03.2010):-
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Particulars |
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Unit |
31.03.2010 |
31.03.2009 |
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Installed
capacity |
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Ring Spindles |
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|
53768 |
53768 |
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Processing |
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Mtr /day |
7800 |
7800 |
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Made ups |
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Pcs /months |
150000 |
150000 |
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Looms |
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|
68 |
36 |
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Production of
Finished Goods |
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Cotton Yarn |
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Kgs. |
1094173 |
461498 |
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Grey Fabric |
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Mtrs |
2730062 |
2949712 |
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Made-ups |
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Mtrs |
2855655 |
3777617 |
GENERAL INFORMATION
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No. of Employees : |
Around 2000 (Approximately) |
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Bankers : |
·
Andhra Bank, Main Branch, ·
Oriental Bank of Commerce, ·
Indian Overseas Bank, · UCO Bank ·
United Bank of |
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Facilities : |
Notes: 1) Working capital loans from banks are secured by hypothecation of Raw Materials, Stock-in-Process and Finished Goods, and book debts and Second charge on the Fixed Assets of the Company on pari-paasu basis. 2) Term Loan From banks and institutions are secured by pari passu first charge on the fixed assets of the Company and pari passu second charge on the current assets of the Company / exclusive charge on Fixed Term Mutual funds plan. 3) Hire Purchase Dues are secured by hypothecation of vehicles purchased. 4) Demand Loan From Banks are secured by fixed deposits with banks.
Note :
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Banking
Relations : |
---- |
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Auditors : |
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Name : |
Subbachar and Srinivasan Chartered Accountants |
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Address : |
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Subsidiaries : |
·
Vijayeswari - · Vijayeswari - UK Limited |
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Associates : |
· Lakshmi Apparels and Wovens Limited · Seshraj Apparels Private limited · Seshraj Enterprises Private Limited ·
· KAY Arr Enterprises |
CAPITAL STRUCTURE
As on : 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity shares |
Rs. 10/- each |
Rs.200.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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|
18169240 |
Equity shares |
Rs. 10/- each |
Rs.181.692
millions |
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Notes:
1) Of the above
shares, 5064620 Equity shares of Rs. 10/- each fully paid up bonus shares issued
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 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
181.692 |
181.692 |
181.692 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1123.231 |
1097.598 |
1219.471 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1304.923 |
1279.290 |
1401.163 |
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LOAN FUNDS |
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1] Secured Loans |
2577.796 |
2171.684 |
1486.570 |
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2] Unsecured Loans |
60.101 |
60.189 |
60.777 |
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TOTAL BORROWING |
2637.897 |
2231.873 |
1547.347 |
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DEFERRED TAX LIABILITIES |
26.744 |
17.266 |
84.230 |
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TOTAL |
3969.564 |
3528.429 |
3032.740 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1307.679 |
916.671 |
847.778 |
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Capital work-in-progress |
610.191 |
628.511 |
98.358 |
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Preoperative Expenses Pending Capitalization |
113.800 |
11.086 |
17.470 |
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INVESTMENT |
73.921 |
205.495 |
383.851 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
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Inventories |
937.956
|
876.518
|
875.905
|
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Sundry Debtors |
370.606
|
440.407
|
576.718
|
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Cash & Bank Balances |
234.500
|
43.322
|
99.081
|
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Other Current Assets |
408.621
|
124.285
|
71.300
|
|
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Loans & Advances |
119.583
|
488.083
|
334.720
|
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Total
Current Assets |
2071.266
|
1972.615
|
1957.724
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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|
Current Liabilities |
258.992
|
240.407
|
298.997
|
|
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Provisions |
14.284
|
42.269
|
55.004
|
|
Total
Current Liabilities |
273.276
|
282.676
|
354.001
|
|
|
Net Current Assets |
179.799
|
1689.939
|
1603.723
|
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MISCELLANEOUS EXPENSES |
65.983 |
76.727 |
81.561 |
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TOTAL |
3969.564 |
3528.429 |
3032.740 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
|
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Income |
1132.691 |
1182.117 |
1341.005 |
|
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|
Other Income |
20.423 |
43.946 |
44.817 |
|
|
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TOTAL (A) |
1153.114 |
1226.063 |
1385.822 |
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Less |
EXPENSES |
|
|
|
|
|
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|
Raw Material Consumed |
309.413 |
394.954 |
490.666 |
|
|
|
Processing and Weaving Charges |
122.012 |
199.231 |
235.520 |
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|
Salaries, Wages and Bonus |
88.134 |
105.194 |
92.845 |
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|
Power and Fuel |
113.645 |
94.492 |
72.672 |
|
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Stores Consumed |
128.929 |
146.875 |
153.791 |
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Lease rent on Production Facilities |
20.952 |
17.866 |
7.688 |
|
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Repairs and Maintenance |
27.557 |
23.482 |
26.599 |
|
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Administrative, Selling and other Expenses |
153.084 |
188.389 |
166.653 |
|
|
|
Development Expenditure |
38.193 |
39.903 |
24.659 |
|
|
|
Increase/Decrease in Stock |
(50.988) |
(24.113) |
(170.825) |
|
|
|
Exceptional Item |
(23.885) |
17.432 |
0.000 |
|
|
|
TOTAL (B) |
927.046 |
1203.705 |
1100.268 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
226.068 |
22.358 |
285.554 |
|
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
125.599 |
140.872 |
136.088 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
100.469 |
(118.514) |
149.466 |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
54.763 |
68.520 |
57.444 |
|
|
|
|
|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
45.706 |
(187.037) |
92.022 |
|
|
|
|
|
|
|
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|
Less |
TAX (I) |
9.478 |
(65.164) |
7.602 |
|
|
|
|
|
|
|
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PROFIT AFTER TAX
(G-I) (J) |
36.228 |
(121.873) |
84.420 |
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(81.938) |
39.935 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
56.304 |
-- |
NA |
|
|
|
Dividend |
9.085 |
-- |
NA |
|
|
|
Tax on Dividend |
1.509 |
-- |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
10.594 |
(81.938) |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Cotton Yarn |
2.747 |
7.688 |
44.799 |
|
|
|
Grey Fabrics |
2.121 |
5.584 |
3.701 |
|
|
|
Madeups |
939.716 |
989.232 |
1026.208 |
|
|
TOTAL EARNINGS |
944.584 |
1002.504 |
1074.708 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
32.433 |
18.917 |
36.042 |
|
|
|
Stores & Spares |
5.376 |
51.389 |
5.827 |
|
|
|
Capital Goods |
111.507 |
209.247 |
168.691 |
|
|
TOTAL IMPORTS |
149.316 |
279.553 |
210.560 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.99 |
(6.71) |
4.65 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
383.340 |
427.720 |
358.310 |
|
Total Expenditure |
326.440 |
338.870 |
267.460 |
|
PBIDT (Excl
OI) |
56.990 |
88.850 |
90.850 |
|
Other Income |
11.750 |
4.500 |
1.440 |
|
Operating
Profit |
68.650 |
93.350 |
92.290 |
|
Interest |
34.760 |
53.490 |
48.280 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
33.890 |
39.860 |
44.010 |
|
Depreciation |
16.000 |
14.220 |
32.220 |
|
Profit
Before Tax |
17.890 |
25.660 |
11.790 |
|
Tax |
2.500 |
6.500 |
5.000 |
|
Reported PAT |
15.390 |
19.160 |
6.790 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
15.390 |
19.160 |
6.790 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
3.14 |
(9.94)
|
6.64 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.03 |
(15.82)
|
6.86 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.35 |
(6.47)
|
3.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
(0.15)
|
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.23 |
1.97
|
1.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
7.57 |
6.98
|
5.53 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is incorporated on September 2005, 1953, has a history
of over five decades, having commenced its spinning operations in 1957 with an
initial capacity of 5,000 spindles. The spindleage was gradually increased to
15,020 as of 1965. During the period 1965 to 1981, the Company embarked upon an
extensive modernisation programme, increasing its spindle capacities from
15,020, in 1965 to 40,216 in 1981. The existing spinning unit of the Company,
situated at Puliampatti, Pollachi Taluk has an installed capacity of 46,004
spindles. The weaving facility at Arakulam, Palladam Taluk, has an installed
capacity of 84 looms, out of which 18 looms are owned by the Company. The
balance weaving facilities have been leased from LAWL, a Promoter Group
company. The processing division of the Company has a capacity of 15,000 metres
per day and is located at SIPCOT Industrial Growth Centre, Perundurai. The
sewing activities located at Kuniamuthur,
REVIEW
OF OPERATIONS:
During the year, the
Company’s performance in terms of turnover remains stagnant despite the
financial hardships in the first two quarters. As a result, the company’s
performance though hit hard by global recession in the first quarter has shown
considerable performance in the next three successive quarters. The stimulus
packages announced by the Government of India have also resulted in positive
impact on the performance of textile industries as a whole. The recessionary
trend in the export market to some extent appears to be lessening but the
impact continues to be felt by the Indian textile industries. During the year,
the Company has received good response from the international trade fairs it
attended and enquires from various customers are encouraging. The Company has
taken various effective cost control methods resulting in better economies of
production and purchases throughout the financial year 2009-2010 which might
help the Company to overcome the recessionary trend in the export market.
During the year, the
company has made attempts to foray into domestic arena as well and is trying to
gain a reasonable market share in the Indian domestic market particularly in
the hospitality segment viz., hotels and hospitals.
MILESTONE:
The company has
achieved yet another milestone by winning the “Five Star Award” awarded by
Macy’s Merchandising Group for 11th year in a row in recognition of its
continued outstanding service to Macy’s Merchandising Group. The Company is the
only company to achieve this mammoth feet in the entire Asian region.
FUTURE:
The future of the Company’s performance looks promising and the reason being that the project expansion programme has reached the final phase and is expected to provide with increased capacity from financial year 2010-11 onwards. The current scenario turns out to be robust and are likely to favour the Indian textile industries in near future. The Government particularly Ministry of Textiles has devised various policies to counter the impact of global recession by way of extending TUF subsidy and other measures for the growth of Indian textile industries.
The future of Indian textile industries hinges on various other factors such as raw material availability, cheap man power and government policies etc. The revival of major economies like US and European Union also plays a significant role for the future of textile industries which nearly accounts for 50% of export market for bed linen products and home textiles.
The Company is making all attempts to explore newer markets in
the South American continent like
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY
STRUCTURE AND DEVELOPMENTS:
TEXTILE INDUSTRY
The Indian Textile
industry impacted by global recession and demand slowdown is on the verge of
recovery and it is projected that exports are likely to grow by 10% in the
current financial year. The Indian Textile industry is set to return to the
recovery path in the year 2010-11. However, the recovery is subject to increase
in demand for textile products, continuation of government stimulus package,
liquidity position and various other factors influencing the textile sector.
The textile sector,
as a whole, witnessed over 2 percent decline in exports at about $20 billion in
financial year 2009 compared with the previous fiscal. World trade in Textiles
and Clothing (T and C) declined to US$477.23 billion in January- December 2009
form US$ 584.61 billion in January – December 2008, a decline of 18.37%. In US
alone, the import from
The fiscal measures
announced by the government during the time of crisis played a pivotal role in
the revival of fortunes for the Indian Textile industry. Some experts still
believe that the worst is not yet over and the temporary relief provided to the
industry would soon be exhausted or become ineffective in the years to come.
Most others are quite confident that these measures would benefit the sector in
the long run and would strengthen its competitiveness in the global market.
IMPACT OF ECONOMIC SLOWDOWN AND ITS AFTER
EFFECTS
The industrial
world which reeled under severe economic crisis during the last fiscal since
the great depression has slowly eased the pressures. Major economies like US
and EU have recorded substantial growth in their performance which resulted in
increase of investors’ confidence globally. The Asian region should have been
given due credit for showing resilient and indeed spearheaded the economic
revival throughout the world.
OPPORTUNITIES
- The
Company has successfully forayed in the hospitality segment viz., hotels
and hospitals. The company is participating in all hospitality fairs
throughout
- The Company is taking necessary measures in brand building for its products in the domestic market as well as international market. The Company realizes the potential in establishing a unique brand identity for its products which serves the Company in competing globally as well as domestically.
- The Company is exploring all possible avenues to set up retail showrooms in and around the region to establish a geographical identity for its products. This will enable the customers to identify the company’s product with geographical importance.
PRESENT DEVELOPMENTS
The Company has
successfully reached the final phase of completion of the project expansion programme
during the financial year 2010. This would result in higher turnover and
profitability in the ensuing years. The optimum utilization of these installed
capacities would again depend on the order book position of the Company in
future.
THREATS
TO THE INDUSTRY:
A recent report by Fitch suggests that the export is likely
to grow by 10% during the current financial year. However, there prevails
difference of opinion amongst various experts relating to revival of economic
growth. Some experts feel that the economy is yet to come out of the woods
whereas others feel that the worst is over and the global economy is on the
path of recovery. Revival of major economies like US and EU still poses a major
threat to the industry as its dependence proved futile during the crisis
period. The exports to these two regions still accounts considerable share to
the Indian textile industry and any bad news from these two regions will haunt
the industry severely. The currency fluctuation also causes a major havoc for
the Indian textile industry and the crisis in European region particularly
situation in countries like
FIXED ASSETS:
· Land
·
· Building
· Plant and Machinery
· Furniture and Fittings
· Office Equipments
· Vehicles
· Canteen Vessels
· Computer Equipments
· Wind Farm
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. 45.24 |
|
|
1 |
Rs. 72.57 |
|
Euro |
1 |
Rs. 63.00 |
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 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
44 |
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.