MIRA INFORM REPORT

 

 

Report Date :

03.05.2011

 

IDENTIFICATION DETAILS

 

Name :

PANASONIC HOME APPLIANCES INDIA COMPANY LIMITED

 

 

Registered Office :

National Highway No. 5, Sholavaram Village, Ponneri Taluk, Tiruvallur District, Chennai 600 067, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

09.09.1988

 

 

Com. Reg. No.:

18-16184

 

 

CIN No.:

[Company Identification No.]

L30007TN1988PLC016184

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEI00084A

 

 

PAN No.:

[Permanent Account No.]

AAACI1304E

 

 

Legal Form :

Public Limited Liability Company. The Company’s shares are listed on the Stock Exchanges. 

 

 

Line of Business :

Manufacturer, Exporter, Supplier, Dealer and Distributor of Home and Electronic Appliances and Accessories.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (63)

 

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 751000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Trade relations are fair. Business is active. Payments are usually correct and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office/ Factory :

National Highway No. 5, Sholavaram Village, Ponneri Taluk, Tiruvallur District, Chennai 600 067, Tamil nadu

Tel. No.:

91-44-26330133/ 397

Fax No.:

91-44-26330132

E-Mail :

baranidharan.natesan@panasonicindia.in 

secretary@panasonicindia.in

Website :

www.panasonic.com

 

 

Corporate Office :

SPIC House, Annexe, 6th Floor, 88, Mount Road, Guindy, Chennai 600 032, Tamilnadu, India

Tel. No.:

91-44-22304201-05

Fax No.:

91-44-22304200

 

 

DIRECTORS

 

Name :

Mr. P. Obul Reddy

Designation :

Chairman

 

 

Name :

Mr. Hidenori Aso

Designation :

Managing Director 

 

 

Name :

Mr. Justice S. Natarajan

Designation :

Director

 

 

Name :

Mr. A. Ragavendra Rao

Designation :

Director

 

 

Name :

Mr. K. Subramanian

Designation :

Director

 

 

Name :

Mr. Norifumi Matsui

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Tom Antony

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

834,340

9.74

Bodies Corporate

830,766

9.69

Sub Total

1,665,106

19.43

(2) Foreign

 

 

Bodies Corporate

4,370,000

50.99

Sub Total

4,370,000

50.99

Total shareholding of Promoter and Promoter Group (A)

6,035,106

70.42

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

1,700

0.02

Financial Institutions / Banks

1,800

0.02

Sub Total

3,500

0.04

(2) Non-Institutions

 

 

Bodies Corporate

1,179,366

13.76

Individuals

 

 

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

1,133,521

13.23

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

206,586

2.41

Any Others (Specify)

11,921

0.14

Clearing Members

11,921

0.14

Sub Total

2,531,394

29.54

Total Public shareholding (B)

2,534,894

29.58

Total (A)+(B)

8,570,000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

8,570,000

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter, Supplier and Dealer of Home and Electronic Appliances and Accessories.

 

 

Products with ITC Code :
  • Electric Cooker – 8516.60
  • Mixer Grinder – 8509.40.90

 

 

Brand Names :

“PANASONIC”

 

 

GENERAL INFORMATION

 

No. of Employees :

210 (Approximately)

 

 

Bankers :
  • The Bank of Tokyo Mitsubishi UFJ Limited
  • HDFC Bank Limited

 

 

Facilities :

Secured Loan

 

31.03.2010

31.03.2009

 

Rs. in millions

Term Loan – The Bank of Tokyo UFJ Limited

(Amount due within one year Rs. 12.583 millions)

55.625

16.875

Total

55.625

16.875

 

Unsecured Loan

 

31.03.2010

31.03.2009

 

Rs. in millions

Interest Free Sales Tax Loan from

State Industries Promotion Corporation

of Tamil Nadu Limited for Mixer- Grinder Project

( Amount due within one year Rs. 1.118 millions)

0.000

1.118

Term Loan The Bank of Tokyo Mitsubishi UFJ Limited

10.000

0.000

Total

10.000

1.118

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Brahmayya and Company

Chartered Accountants

Address :

No. 48, Masilamani Road, 3rd Floor, Ehrlich Laboratories, Balaji Nagar, Royapettah, Chennai 600 014, Tamilnadu, India

 

 

Holding Company :

Panasonic Corporation – Osaka, (Formerly Matsushita Electric Industrial Company Limited, Japan)

 

 

Subsidiaries :
  • Panasonic Home Appliances Thailand Company Limited
  • Panasonic Trading S Private Limited Singapore
  • Panasonic Electric Works (Asia Pacific) Private Limited,- Singapore
  • Panasonic Logistics (Hong Kong) Company Limited
  • Panasonic (Export Division)- Singapore
  • Panasonic Centroamericana -SA C-RICA
  • Panasonic Asia Pacific Private Limited
  • Panasonic Manufacturing Malaysia Berhad
  • Panasonic India Private Limited
  • Panasonic Latin America
  • Panasonic Mktg-Middle East
  • Panasonic Singapore (RSG)
  • Panasonic Gulf FZE (Dubai)
  • Panasonic Peruana S.A - Peru

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

13000000

Equity Shares

Rs. 10/- each

Rs.130.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

8570000

Equity Shares

Rs. 10/- each

Rs.85.700 millions

 

(Of the above, 43,70,000 Equity Shares of Rs. 10 each are held by the Holding Company Panasonic Corporation Japan)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

85.700

85.700

85.700

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

102.029

92.681

90.545

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

187.729

178.381

176.245

LOAN FUNDS

 

 

 

1] Secured Loans

55.625

16.875

23.444

2] Unsecured Loans

10.000

1.118

3.045

TOTAL BORROWING

65.625

17.993

26.489

DEFERRED TAX LIABILITIES

7.054

3.626

3.886

 

 

 

 

TOTAL

260.408

200.000

206.617

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

175.950

109.462

113.249

Capital work-in-progress

9.520

24.936

0.000

 

 

 

 

INVESTMENT

0.000

0.000

1.930

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
144.849
133.281

110.276

 

Sundry Debtors
154.835
71.136

65.196

 

Cash & Bank Balances
3.887
20.611

53.630

 

Other Current Assets
0.072
0.251

4.503

 

Loans & Advances
72.747
62.287

41.681

Total Current Assets
376.390
287.566

275.286

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
237.500
160.598

126.733

 

Provisions
63.952
61.366

57.115

Total Current Liabilities
301.452
221.964

183.848

Net Current Assets
74.938
65.602

91.438

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

260.408

200.000

206.617

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

1350.965

988.006

790.984

 

 

Other Income

1.465

10.651

7.657

 

 

TOTAL                                     (A)

1352.430

998.657

798.641

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Sold

251.039

183.564

148.509

 

 

Manufacturing Expenses

1039.384

765.888

605.433

 

 

TOTAL                                     (B)

1290.423

949.452

753.942

 

 

 

 

 

Less

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

62.007

49.205

44.699

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

9.392

4.844

4.388

 

 

 

 

 

 

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

52.615

44.361

40.311

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

22.665

18.477

15.041

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

29.950

25.884

25.270

 

 

 

 

 

Less

TAX                                                                  (I)

10.610

11.717

10.781

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

19.340

14.167

14.489

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

27.887

26.106

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

0.354

NA

 

 

Dividend

8.570

10.284

NA

 

 

Tax on Dividend

1.423

1.748

NA

 

BALANCE CARRIED TO THE B/S

37.234

27.887

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

157.181

78.047

NA

 

 

Stores & Spares

2.933

2.723

NA

 

 

Capital Goods

27.942

0.281

NA

 

 

Others

186.920

153.501

NA

 

TOTAL IMPORTS

374.976

234.552

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.26

1.65

1.69

 

QUARTERLY RESULTS

 

Particulars

 

30.06.2010

30.09.2010

31.12.2010

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

368.270

486.240

579.170

Total Expenditure

357.310

463.490

552.830

PBIDT (Excl OI)

10.960

22.750

26.340

Other Income

1.180

0.610

0.340

Operating Profit

12.140

23.360

26.680

Interest

3.010

5.570

7.870

Exceptional Items

0.000

0.000

0.000

PBDT

9.130

17.790

18.810

Depreciation

5.540

7.160

7.450

Profit Before Tax

3.590

10.630

11.360

Tax

1.030

3.690

3.610

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

2.550

6.940

7.750

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

2.550

6.940

7.750

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
1.43

1.42

1.81

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
2.22

2.62

3.19

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.42

6.52

6.50

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.16

0.14

0.14

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.95

1.34

1.19

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.25

1.29

1.50

 

 

LOCAL AGENCY FURTHER INFORMATION

 

PERFORMANCE:

 

During the year the Company has registered an impressive growth in its sales where the gross sales increased to Rs.1446.600 Millions from Rs.1098.600 Millions in the previous year registering a growth rate of 31.68%. The increase in sales was mainly contributed by the Electric Cooker segment. The Company has registered a profit before tax of Rs.29.950 millions as against Rs. 25.884 millions, in the previous year. The profit after tax of the Company stood at Rs. 19.340 millions as against Rs. 14.168 millions in the previous year.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

 

INDUSTRIAL REVIEW:

 

The global economy continues to recover amidst ongoing policy support and improving financial market conditions. India's GDP stood at 7.4 per cent in the year 2009-10 as compared to 6.7% in the previous year. The Government estimates the economy to grow at a rate of 8.5 per cent in 2010-11 driven by better farm output and a global recovery. The industrial sector recovery is increasingly becoming broad-based and is expected to take firmer hold going forward on the back of rising domestic and external demand. The improved performance of the industrial sector is also reflected in the improved profitability in the corporate sector.

 

Driven by a young population with access to disposable incomes and easy finance options, the Indian consumer market has been growing very fast. The Indian consumer durables segment can be segregated into consumer electronics viz., TVs, VCD players and audio systems and consumer appliances like refrigerators, washing machines, air conditioners, microwave ovens, vacuum cleaners etc.,. Most of the segments in this sector are characterized by intense competition consequent to the re-entry of many Multinational Compnies (MNCs) into the Indian consumer market, introduction of state-of-the-art models, price discounts and exchange schemes. MNCs continue to dominate the Indian consumer durable segment.

The Company continued to sustain its predominant position in the Electric Cooker segment. Quality of the product continues to be the strength of the Company to secure maximum customer satisfaction. During the year, the Company has successfully launched the mechanical Jar Cooker, a new product from its manufacturing stable besides revamping some of its current offerings to better suit consumer tastes. The ongoing capacity expansion program to increase the manufacturing capacity of Electric Cooker to 10 lakhs numbers is progressing as scheduled and is expected to be completed during the first half of the current financial year. The investment requirements for the ongoing expansion program and for the development of new models of electric cooker and mixer grinder are being met through a combination of internal accruals and Bank borrowings.

 

ANALYSIS OF FINANCIAL CONDITION AND RESULTS:

 

During the year the Company has registered an impressive growth in its sales where the gross sales increased to Rs.1446.600 millions from Rs.1098.600 millions in the previous year registering a growth rate of 31.68%. The Company has registered a profit before tax of Rs.29.950 millions as against Rs. 25.884 millions, in the previous year. The profit after tax of the Company stood at Rs.19.340 millions as against Rs. 14.168 millions in the previous year.

 

 

FIXED ASSETS 

  • Land
  • Building
  • Plant and Machinery
  • Furniture, Fixtures and Fittings
  • Vehicles

 

AS PER WEB: 

 

Profile

Panasonic's vision of the digital future is driven by the needs and aspirations of their business customers and millions of consumers around the world who use their products every day. They share their dream to live a fuller life by providing ways of working smarter and enjoying the rewards of technological advances.


As they move forward together with their customers into the uncharted future of the 21st century with the prospect of future technologies and systems yet to be thought of, Panasonic's standards are still firmly grounded in the philosophy of company founder Konosuke Matsushita. He began their journey in 1918 by inventing a two-socket light fixture. Profound in its import yet elegantly simple, Konosuke Matsushita's breakthrough led to what is now one of the world's largest electronics companies. As he built Matsushita Electric Industrial Company Limited, they never lost sight of the importance of putting the needs of his customers and the public first.

 

Panasonic will continue its Customer First tradition of creating new products that resolve the challenges in business and personal life, helping them all enjoy more of what life has to offer. The name Panasonic is synonymous with innovation, quality, performance and ease of use. They look forward to a bright and shining technological future, and to playing a leading role in the digitally networked society, propelled by the creativity and dedication of their employees here and around the world.

 

Panasonic is much more than a well-known brand name. It stands for the depth and diversity of their research capabilities, manufacturing expertise and product selection. It stands for the advanced technology of products, from easy-to-use consumer goods to sophisticated medical, broadcast, business and industrial systems.

 

More importantly, Panasonic stands for a commitment to quality, value and innovation. In North America, this commitment is backed up by employees working in research and development centers from California's Silicon Valley to Video Valley in New Jersey, state-of-the-art manufacturing plants, one of the country's largest customer call centers in Virginia and sales and service organizations that deal with the public and business-to-business relationships in nearly every state. In all of their dealings, the customer is always first. This was their bedrock philosophy through the 20th century and it will carry them through the 21st century.

 

 

Press Releases:-

 

PANASONIC TEAMS UP WITH US OLYMPIC FIGURE SKATER MIRAI NAGASU

 

Panasonic to Film Rising Skater in Full HD 3D; Will Provide Behind-the-Scenes Look at Her Olympic Experience on LivingInHD.com

 

VANCOUVER, BC (February 12, 2010) – Panasonic, the Official Worldwide Olympic Partner in the Audio and Visual Equipment category for the Vancouver 2010 Olympic Winter Games, and a world leader in High Definition technology, announced today that it has teamed with US Olympian, Mirai Nagasu, one of the youngest Olympians, to compete in the women’s figure skating competition at the Vancouver Games. Mirai will work with Panasonic on a range of projects including a skating video, shot entirely in Full HD 3D for viewing on 3D TV.

 

The sixteen year-old 2008 US Champion from Arcadia, CA, who is competing in her first Olympic Games, will work with Panasonic to create a demonstration video on the key elements in an Olympic figure skating program, which Panasonic will present on its Living In HD site, a support-site for people who are interested in all the different HD products available today.  

 

Ms. Nagasu and her family will also become members of Panasonic’s Living In HD Family Program (www.LivingInHD.com) and will be the first family in the program to receive a Full HD 3D Home Theater System.

 

First launched in August 2007, the Living in HD program was created to help people get the answers they need about the emerging HD, and now 3D products coming to market by communicating with real people who are actually using the technology in their everyday lives, and a true technology guru referred to as the “Answer Man”. Participating families receive a suite of interconnected High Definition products, including VIERA Flat Panel HDTVs, home theater systems, Blu-ray Disc™ players, LUMIX digital cameras and HD camcorders. They provide feedback on how they use the products in their everyday lives and share their own inspirational and creative project ideas through the LivingInHD.com community website.  LivingInHD.com is a community for people who share their life experiences with others through photos and videos, learn new tips and tricks and connect with others who are interested and excited about High Definition technology. The Living In HD community is powered by people who have answers and those who have questions, in an environment that fosters sharing, inspiration and growth.

 

Ms. Nagasu will share daily “tweets” and Facebook messages with fellow LivingInHD.com community members for behind-the-scenes insights of her first Olympic experience, as she prepares for the Olympic Figure Skating competition on February 23rd and 25th in Vancouver. The Nagasu family will also utilize Panasonic LUMIX digital cameras and camcorders while at the Vancouver Olympic Games and share the images on LivingInHD.com.

 

“We are very excited to team up with Mirai, and her family, as they embark on what we know will be an exciting Olympic experience,” said Bob Greenberg, Panasonic’s Vice President of Brand Marketing for North America. “Mirai has a bright future ahead of her and we’re looking forward to the Nagasu family capturing all of the precious moments along the way with Panasonic’s award-winning Full HD products, and sharing them with our Living In HD community.  We are also looking forward to working with Mirai to link the highly-visual world of figure skating with the immersive experience of Full HD 3D for the home.”

 

About Panasonic:

Based in Secaucus, NJ, Panasonic Corporation of North America markets a broad line of digital and other electronics products for consumer, business and industrial use. The company is the principal North American subsidiary of Panasonic Corporation (NYSE: PC), and the hub of Panasonic’s U.S. branding, marketing, sales, service and R & D operations. Information about Panasonic and its products is available at www.panasonic.com and its Full HD 3D site at www.panasonic.com/3D.  Additional company information for journalists is also available at www.panasonic.com/pressroom.

 

Panasonic is proud to support the Olympic Movement—aimed at promoting world peace through sports—as an Official Worldwide Olympic Partner in the Audio and Visual Equipment category for more than 20 years since The Olympic Partner (TOP) Program commenced for the Calgary Olympic Winter Games in 1988.  Under the slogan of "Sharing the Passion," Panasonic will contribute to the success of the Olympic Games through its technology. In 2007 Panasonic renewed the partnership with the International Olympic Committee through to the 2016 Olympic Games in Rio de Janeiro.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.30

UK Pound

1

Rs.73.89

Euro

1

Rs.65.57

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

YES

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

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

 

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

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

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NB

New Business

--

 

 

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

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