MIRA
INFORM REPORT
|
Report Date : |
28.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
SHREE GANESH FORGINGS LIMITED |
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Registered Office : |
412, EMCA House, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
18.09.1972 |
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Com. Reg. No.: |
11-016008 |
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CIN No.: [Company
Identification No.] |
L17200MH1972PLC016008 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS43499B |
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PAN No.: [Permanent
Account No.] |
AAACS7821E |
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Legal Form : |
A public limited
liability company. The company’s shares are listed on the Stock
Exchange. |
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Line of Business : |
The company
is engaged in manufacturing and sale of Flange Fittings, Automotive
Components, Defence and Agriculture Components. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (11) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be sever under pressure. There appears to be huge
accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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
|
Registered Office : |
412, EMCA House, |
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Tel. No.: |
91-22-66311054 / 55 |
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E-Mail : |
91-22-22625217 |
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E-Mail : |
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Website : |
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Corporate Office and Factory : |
C-3/ C, Trans
Thane Creek Industrial Area, Pawane, |
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Tel. No.: |
91-22-27681193/
27632024/ 27632026/ 67394444 - 60 |
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Fax No.: |
91-22-27670267/
2625217 |
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Administrative Office : |
5/ 5A, Kamnawala Chambers, 4th Floor, |
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Tel. No.: |
91-22-262 4627 |
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Fax No.: |
91-22-262 5217 |
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E-Mail : |
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Website : |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr.
Deepak B. Sekhri |
|
Designation : |
Chairman
cum Managing Director |
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Qualification : |
B.Com |
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Date of Appointment : |
1981 |
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|
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Name : |
Mrs.
Anita D. Sekhri |
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Designation : |
Executive
Director |
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Qualification : |
B.A. |
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Date of Appointment : |
1993 |
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Name : |
Mr.
Gian Prakash Singh |
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Designation : |
Director |
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Name : |
Mr.
Pal Uppal |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Geeta Krishnan |
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Designation : |
Company Secretary |
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Name : |
Mr. Pronab Kumar Chakravarty |
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Designation : |
Financial Controller |
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Name : |
Mr. Ganesh Madhavrao Joshi |
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Designation : |
Manager (Design) |
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Name : |
Mr. Shamkant V. Dalvi |
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Designation : |
Incharge-Forge Shop |
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Name : |
Mr. Tabinder Singh |
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Designation : |
General Manager-Production |
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Name : |
P. Chaudhary |
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Designation : |
Senior Manager (P and A) |
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Name : |
Mr. Vikas Rampal |
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Designation : |
GM Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
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6,652,641 |
53.22 |
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250,250 |
2.00 |
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6,902,891 |
55.22 |
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Total
shareholding of Promoter and Promoter Group (A) |
6,902,891 |
55.22 |
|
(B) Public
Shareholding |
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841,522 |
6.73 |
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2,728,243 |
21.83 |
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1,881,098 |
15.05 |
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146,720 |
1.17 |
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14,125 |
0.11 |
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132,595 |
1.06 |
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|
5,597,583 |
44.78 |
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Total Public
shareholding (B) |
5,597,583 |
44.78 |
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Total (A)+(B) |
12,500,474 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total
(A)+(B)+(C) |
12,500,474 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million
BUSINESS DETAILS
|
Line of Business : |
The
company is engaged in manufacturing and sale of Flange Fittings, Automotive
Components, Defence and Agriculture Components. |
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Products : |
v Flange Fittings v Automotive Components v Defence and Agriculture Components |
PRODUCTION STATUS (As On 31.03.2009)
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Particulars |
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31.03.2009 |
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Installed Capacity |
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|
11450 Metric Ton |
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Actual Production |
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|
2484 Metric Ton |
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PRODUCTION STATUS
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Particulars |
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Unit |
Actual Production |
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Steel |
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MT |
4953 |
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GENERAL INFORMATION
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Customers : |
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No. of Employees : |
1500
(Approximately) |
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Bankers : |
· Central
Bank of · State
Bank of · State
Bank of ·
State Bank of ·
Bank of |
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Facilities : |
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Alfa Level
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
R.K. Choudhary and Associates Chartered Accountants |
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Address : |
Mumbai |
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Associates/Subsidiaries : |
· Chandramouli Silk Mills · Dean Akshatt Exim (Private) Limited · Namha Profiles Inc. · Namha Euro |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15500000 |
Equity shares |
Rs.10/- each |
Rs.155.000 millions |
|
2000000 |
Preference Shares |
Rs.10/- each |
Rs.20.000 Millions |
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Total |
|
Rs.175.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12500474 |
Equity shares |
Rs.10/- each |
Rs.125.005
millions |
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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 |
125.000 |
125.005 |
125.005 |
|
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2] Share Warrants and Outstanding |
50.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
162.159 |
156.623 |
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4] (Accumulated Losses) |
(205.940) |
(65.415) |
(0.430) |
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NETWORTH |
(30.940) |
221.749 |
281.198 |
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LOAN FUNDS |
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|
1] Secured Loans |
1407.310 |
1276.348 |
831.623 |
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2] Unsecured Loans |
0.000 |
0.000 |
69.327 |
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TOTAL BORROWING |
1407.310 |
1276.348 |
900.950 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
18.899 |
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TOTAL |
1376.370 |
1498.097 |
1201.047 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
542.740 |
599.567 |
307.247 |
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Capital work-in-progress |
0.000 |
0.000 |
218.414 |
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INVESTMENT |
88.500 |
87.510 |
84.454 |
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DEFERREX TAX ASSETS |
215.800 |
100.390 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
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Inventories |
510.520
|
633.123
|
615.219 |
|
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Sundry Debtors |
108.660
|
120.459
|
183.197 |
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Cash & Bank Balances |
7.020
|
3.877
|
5.774 |
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Other Current Assets |
15.980
|
0.000
|
0.000 |
|
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Loans & Advances |
124.230
|
142.284
|
149.088 |
|
Total
Current Assets |
766.410
|
899.743
|
953.278 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
181.105
|
348.759 |
|
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Other Current Liabilities |
|
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|
Provisions |
79.690
|
12.051
|
18.547 |
|
Total
Current Liabilities |
240.200
|
193.156
|
367.306 |
|
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Net Current Assets |
526.210
|
706.587
|
585.972 |
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MISCELLANEOUS EXPENSES |
3.120 |
4.043 |
4.960 |
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|
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TOTAL |
1376.370 |
1480.097 |
1201.047 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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SALES |
|
|
|
|
|
|
|
Income |
295.900 |
418.100 |
1078.000 |
|
|
|
Other Income |
34.900 |
23.300 |
37.800 |
|
|
|
TOTAL (A) |
330.800 |
441.400 |
1115.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/Decrease in Stock |
139.600 |
(11.600) |
(65.000) |
|
|
|
Raw Materials Consumed |
218.300 |
285.900 |
944.200 |
|
|
|
Power & Fuel Cost |
40.900 |
38.600 |
58.100 |
|
|
|
Employee Cost |
35.900 |
29.100 |
24.000 |
|
|
|
Other Manufacturing Expenses |
22.100 |
6.800 |
0.000 |
|
|
|
Selling and Distribution Expenses |
0.000 |
0.000 |
0.000 |
|
|
|
Miscellaneous Expenses |
52.300 |
84.700 |
123.400 |
|
|
|
TOTAL (B) |
509.100 |
433.500 |
1084.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(178.300) |
7.900 |
31.100 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
132.700 |
141.100 |
69.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(311.000) |
(133.200) |
(38.500) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
70.900 |
45.100 |
37.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(381.900) |
(178.300) |
(76.400) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(89.700) |
(118.700) |
(152.000) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(292.200) |
(59.600) |
(75.600) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of Export |
NA |
313.356 |
438.246 |
|
|
TOTAL EARNINGS |
NA |
313.356 |
438.246 |
|
|
|
|
|
|
|
|
|
|
IMPORT VALUE |
NA |
0.846 |
75.917 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(23.38) |
(4.77) |
(6.05) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
52.590 |
11.410 |
13.450 |
|
Total Expenditure |
58.120 |
27.080 |
27.690 |
|
PBIDT (Excl OI) |
(5.530) |
(15.670) |
(14.240) |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
(5.530) |
(15.670) |
(14.240) |
|
Interest |
3.630 |
11.120 |
30.820 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(9.160) |
(26.790) |
(45.060) |
|
Depreciation |
11.230 |
11.350 |
11.360 |
|
Profit Before Tax |
(20.390) |
(38.150) |
(56.420) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(20.390) |
(38.150) |
(56.420) |
|
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 |
(20.390) |
(38.150) |
(56.420) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(88.33) |
(13.50) |
(6.78) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(129.06) |
(42.65) |
(7.09) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(29.17) |
(11.89) |
(5.17) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
12.34 |
(0.80) |
(0.27) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(53.25) |
6.63 |
4.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.19 |
4.66 |
2.60 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS During the year, the turnover of the Company reduced considerably to Rs.295.885 millions against the previous years Rs.418.084 millions. This is attributable to the failure of the Corporate Debt Restructuring (CDR) package on the one hand and the global meltdown on the other, besides the recurrent labour problems faced by the company. The CDR package which saw the company take a few positive steps in late 2008 and early 2009 failed to meet the Company’s requirements and expectations since all the facilities they aren’t released in time to gear the company towards fulfilling its business obligations. The company was therefore constrained to apply again to the CDR Cell for reworking of the package during the last quarter of 2009. Due to unfavourable circumstances and lack of consensus amongst the banker’s consortium, the approval to this CDR proposal took longer than expected. Pending approval of the reworked package, the bankers had not released the working capital limits essential to the survival of any medium -sized unit given the melt-down in the global scenario. While the Company had been able to secure orders from some of its age-old European customers despite the economic downturn, many of these orders could not be executed by the company due to lack of working capital. The global meltdown of course left its scars on the export turnover which has always been the mainstay of the Company’s business. This in turn resulted in the company not being able to meet its projected turnover under the CDR package, which led to an unprecedented tightening of working capital limits. In short the entire operations was into a vicious circle, and needless to say that their capacity utilization was well below average industry standards. Unfortunately, all these factors resulted in mounting losses for the Company so much so that the Company’s net worth which stands at Rs.280.048 millions as on 31.03.2010 has been completely wiped out by the accumulated losses of Rs.357.639 millions. Under the advice of the Company’s auditors, the Board shall be referring the Company to the Board of Industrial and Financial Reconstruction under the proviso to section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. Presently, the domestic market is showing signs of recovery and the Company has already started reviving its presence in the domestic sector. The export market is also slowly beginning to thaw and with the co-operation of the bankers in implementing the reworked CDR package without delay, the Company should be able to arrive at a more sustainable position. The operations of the Company’s step-down subsidiaries, Hertecant NV in Belgium, ELFE in France and Hertecant ME in Dubai also took a beating during the year with all of them having reported loss for the financial year ended 31.03.2010. Corporate Debt Restructuring As stated earlier, the CDR package sanctioned for the Company in September, 2008 was not very successful in bringing about the financial roundabout that was expected of it. In view of this situation, during the year, the company approached the CDR Cell once again with a request to rework the CDR package and give them the required breather so that the company is able to meet its commitments to its clients and vendors. While the CDR Cell gave its approval to the reworked package at its meeting held on 15th March, 2010, the sanction of the consortium bankers have just been received and the implementation of the reworked package is expected to commence by July, 2010. The reworked CDR package, inter alia, envisages the following: a) Issue of Optionally Convertible Cumulative Redeemable Preference Shares(OCCRPS) to the extent of Rs.156.500 millions to the lender- bankers viz. State Bank of Patiala, State Bank of Hyderabad, State Bank of Indore and Bank of Maharashtra on conversion of the Funded Interest Term Loans as on 01.04.2009 and the interest accrued on it thereafter. The company therefore seeks the approval to the increase in the Authorised Share Capital in order to accommodate the issue of the aforesaid Preference Shares as detailed in the notice convening the Annual General Meeting and for the issue of OCCRPS to the aforesaid lenders under section 81(1A) of the Companies Act,1956. b) Issue of Equity shares to the promoters in lieu of their Contribution of Rs.60.000 millions, which has already been brought in. Although the members approval for the issue and allotment of shares on a preferential basis was taken at the last Annual General Meeting, no shares were allotted owing to the failure of the CDR package and the applications made to the Bombay The approval is sought once again under section 81(1A) of the Companies Act, 1956 for issue of shares to the promoters on preferential basis under the conditions of the reworked CDR package dated 15.03.2010. DIRECTORS Mr. Deepak B Sekhri and Mrs. Anita D Sekhri were reappointed by the Board as Managing Director and Executive Director respectively, subject to confirmation of the shareholders at the general meeting, with effect from 01.04.2010 as their previous appointment was valid until 31.03.2010. The approval of the members for their appointment as Managing Director and Executive Director respectively is being sought at the ensuing Annual General Meeting.
FIXED ASSETS:
·
Land (Leasehold)
·
·
Office Flat
·
Plant and Machinery
·
Furniture and Fixture
·
Office Equipment
·
Computer and Software
·
Vehicles
WEBSITE DETAILS:
PROFILE:
Subject with the
inheritance of excellence and customer satisfaction as its primary directive
principle is in the role segment of forgings, started its
journey in 1982 in the forgings sector. Company’s commitment to quality and
adherence to international standards has made it a well –known name in
forgings. Its strength lies in its wide range of forgings products like
flanges, fittings, forge valve to automobile spares etc. which are manufactured
and exported worldwide. Company is groomed by Mr. Deepak Sekhri(CMD) and his
wife Mrs. Anita Sekhri and both of them have more than 23 years of experience
in the forgings industry. Their primary directives are customer satisfaction
and product excellence, their vast experience in the forgings business and have
helped the Company in achieving various new milestones.
Manufacturing unit
of subject is located at Pawane in Navi Mumbai and being an Industrial area,
skilled and unskilled labour force is available at reasonable rates.
Availability of Power without much interruption and from the transportation
aspect area is well connected with roads and rails. Company is fully equipped
with a team of highly qualified and experienced technocrats, manning various
specialized departments such as Design and Estimation Department, Die and Tool
making Facility, Cutting Unit, Heat Treatment Department, Grinding Department,
Fettling Department, Testing and checking Department and Machining Department
Subject shares brand repute in the countries like Germany, Netherlands,
Belgium, France, Denmark, Italy, Spain, Greece, U.K, U.S.A., Australia, Canada
and Middle East. Over the years Company has developed Special grades of
stainless steel, duplex steel, special chrome molly, special alloy steel,
Carbon steel etc. Due to its dedicated efforts at providing quality products,
Company enjoys a good reputation and this has translated into increased
turnover from exports as well as from domestics. Subject is always committed to
good quality and has earned itself all around reputation and trust. The company
was awarded by Engineering Export promotion Council “Certificate of Excellence
for the years 1990-91, 1992-93, 1994-95, and 1998-1999”.Products of subject
confirm the international standard such as A. N. S. I, EN-1092-1, D. I. N, A.
S. T. M, B. S, M. S. S, TUVCERT / RWTUV, ISO 9001:2000,.Besides these , the
entire process facilities have also been surveyed by various Inspection
Agencies such as Bureau Veritas, N.C.P.L., E.I.L., Indian defence sector, I.B.
R, UHDE, American Bureau of Shipping. Subject is the only one Company in
Before June 2005 subject was a closely held Company and 100% ownership
was with the promoters group. For the first time in 2005 Company come out with
an IPO and successfully completed its IPO with 24.54 times over subscription.
Now Company is listed with BSE, (Stock Exchange Mumbai) and at Present
Promoters holdings are 60% equity Capital of the Company and rest 40% holds
jointly by MUTUAL FUNDS, FIIs, NRIs and Indian Public.
At present company is
in the process of more than doubling its forging capacities from 11000 MT to
22800 MT at the existing location by installing 2500- MT press and 4000- MT
press with robotic application, with additions of 48 nos of C.N.C Machines.
MANAGEMENT:
Mr. Deepak B. Sekhri is CMD of this company with an
experience of more than 23 years of experience in the forging industry and has
been working with subject since 1981. He is the son of Late Mr. Balkrishan
Sekhri. He stepped into this Company at the age of 21 and groomed this company
into one of the reputed companies in the Forging industry. He is a First
Generation Entrepreneur with a high vision. His actions are quick and well
received. He has established a reputation for quality products in the global
market with his strong engineering capabilities and state of art manufacturing
facilities.
Mrs. Anita D. Sekhri is Excutive Director with an
experience of about 11 years in the field of Materials Management. She is the
wife of Mr. Deepak .B. Sekhri. She has wide exposure in Materials Management
and has excellent track record of reducing the cost of inventory. She has over
a decade experience in cost reduction and inventory management. Her expertise
in cost reduction and purchase has been a great asset for the company.
Mr. G. P. Singh - Director. He is a
retired Defense Officer, who has served more than 30 years in Indian Air Force.
He has worked in Subject for 12 years as Deputy General Manager (P and A).
Mr. Pal Uppal – Director He is an entrepreneur having more
than two decades experience in the automobile and related business. He is a
Chairman cum Managing Director of SU Submersible Pumps Private Limited and
Joint Managing Director in SU Motors Private Limited.
FUTURE PLANS:
Expansion in manufacturing area going on to enhance the present capacity
with latest version of vertical forging presses with the capacity of 2500Ton
and 4000 Ton. Incorporating the induction heaters with robotic automisation.
Also having a planning for the introduction of latest state of art
WAGNER Ring Rolling Machines with the capacity of One Meter Diameter in to
their production lines.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.65 |
|
|
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.63.28 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
1 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
- |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
11 |
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.