MIRA INFORM REPORT

 

 

Report Date :

12.05.2011

 

IDENTIFICATION DETAILS

 

Name :

SHIV VANI OIL AND GAS EXPLORATION SERVICES LIMITED

 

 

Registered Office :

Tower 1, 5th Floor, NBCC Plaza, Sector V, Pushp Vihar, New Delhi – 110071

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

05.12.1989

 

 

Com. Reg. No.:

038542

 

 

Capital Investment / Paid-up Capital :

Rs. 463.605 Millions

 

 

CIN No.:

[Company Identification No.]

L74899DL1989PLC038542

 

 

Legal Form :

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

 

 

Line of Business :

Service Provider of onshore Oil and Gas

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (66)

 

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 36985000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company and having fine track. Financial position of the company appears to be sound. Trade relations are fair. Business is active. Payments are reported to be regular 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 – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

Tower 1, 5th Floor, NBCC Plaza, Sector V, Pushp Vihar, New Delhi – 110071, India

Tel. No.:

91-11-29564592

Fax No.:

91-11-29565082

E-Mail :

vimal.chadha@shiv-vani.com

mail@shiv-vani.com

Website :

www.shiv-vani.co.in

 

 

Branch Office :

302, Jai Krishna Complex, Fun Republic Lane, Opposite New Link Road, Andheri (W), Mumbai – 400053, Maharasahtra, India

Tel. No.:

91-22-26735208/ 26734407

Fax No.:

91-22-26735204

E-Mail :

mail@shiv-vani.com

 

 

DIRECTORS

As on 31.03.2010

 

Name :

Mr. Prem Singhee

Designation :

Chairman And Managing Director

 

 

Name :

Mr. Prateep Kumar Lahiri

Designation :

Directors

 

 

Name :

Mr. Om Prakash Garg

Designation :

Directors

 

 

Name :

Captain. Hiteshi Chander Malik

Designation :

Director

 

 

Name :

Mr. Dwarka Das Gupta

Designation :

Director

 

 

Name :

Mr. Rajneesh Gupta

Designation :

Director

 

 

Name :

Mr. Padam Singhee

Designation :

Joint Managing Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajan Gupta

Designation :

Chief Financial Officer

 

 

Name :

Mr. Vimal Chadha

Designation :

Company Secretary and Compliance Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

5,025,996

10.84

Bodies Corporate

18,546,745

40.01

Sub Total

23,572,741

50.85

(2) Foreign

 

 

Bodies Corporate

1,793,400

3.87

Sub Total

1,793,400

3.87

Total shareholding of Promoter and Promoter Group (A)

25,366,141

54.71

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

1,901,594

4.10

Financial Institutions / Banks

13,690

0.03

Foreign Institutional Investors

1,929,285

4.16

Sub Total

3,844,569

8.29

(2) Non-Institutions

 

 

Bodies Corporate

9,589,499

20.68

Individuals

 

 

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

2,076,902

4.48

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

86,885

0.19

Any Others (Specify)

5,396,505

11.64

Directors & their Relatives & Friends

400

-

Non Resident Indians

156,054

0.34

Clearing Members

13,514

0.03

Hindu Undivided Families

48,409

0.10

Foreign Corporate Bodies

2,718,934

5.86

Overseas Corporate Bodies

2,457,895

5.30

Trusts

1,299

-

Sub Total

17,149,791

36.99

Total Public shareholding (B)

20,994,360

45.29

Total (A)+(B)

46,360,501

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Service Provider of onshore Oil and Gas

 

 

Products :

Item Code No.

Product Description

98010005

Project for Exploration of Oil

 

 

GENERAL INFORMATION

 

Customers :
  • ONGC
  • OIL
  • PDO-Shell Oman

 

 

Bankers :
  • State Bank of India
  • ICICI Bank Limited
  • Punjab National Bank
  • Standard Chartered Bank
  • DBS Bank Limited
  • State Bank of Mysore
  • Life Insurance Corporation of India Limited
  • State Bank of Hyderabad
  • Yes Bank Limited
  • Bank of India
  • Exim Bank Limited
  • Union Bank of India
  • State Bank of Patiala
  • Corporation Bank Limited
  • United Bank of India
  • UCO Bank
  • Industrial Development Bank of India Limited
  • State Bank of Bikaner and Jaipur
  • Karnataka Bank Limited
  • State Bank of Saurastra
  • State Bank of Travancore
  • Bank of India
  • Syndicate Bank Limited
  • Allahabad Bank

 

 

Facilities :

Secured Loan

As on

31.03.2010 Rs. in

Millions)

As on

31.03.2009 Rs. in

Millions)

A) Term Loan

 

 

From Financial Institutions/ Banks

 

 

Industrial Development Bank of India Limited

0.000

42.963

ICICI Bank Limited

1907.867

4576.056

State Bank of Bikaner and Jaipur

0.000

65.751

State Bank of India

2406.529

739.729

Punjab National Bank

48.317

502.929

State Bank of Mysore

22.457

47.348

Life Insurance Corporation of India

556.233

0.000

State Bank of Hyderabad

505.232

25.050

Yes Bank Limited

700.667

362.021

Bank of India

473.374

504.739

Syndicate Bank Limited

0.000

35.396

Karnataka Bank Limited

0.000

187.280

Exim Bank Limited

1527.371

2253.058

State Bank of Saurastra

305.826

448.064

State Bank of Travancore

0.000

220.796

Union Bank of India

1024.139

504.835

State Bank of Patiala

666.058

498.568

Bank of Baroda

948.718

929.292

Allahabad Bank

0.000

505.732

L and T Infrastructure Finance Limited

1004.833

0.000

L and T Infrastructure Limited

502.417

0.000

Corporation Bank Limited

774.235

0.000

United Bank of India

1010.248

0000

UCO Bank

1000.000

0.000

B) Working Capital Loans

0.000

0.000

Cash Credit Loans from Banks

1392.499

725.524

C) Deferred Creditors

0.000

0.122

Total

16777.020

13175.253

Un Secured Loan

As on

31.03.2010 Rs. in

Millions)

As on

31.03.2009 Rs. in

Millions)

From Bank

504.267

505.207

From Others

6.460

85.422

Total

510.727

590.629

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Vijay Prakash Gupta and Associates

Chartered Accountant

 

 

Subsidiaries :
  • TNG Shiv Geo Oil Services Limited, India
  • Shiv –Vani Singapore PTE Limited, Singapore
  • Shiv –Vani Oil Services Limited, India
  • Shiv –Vani Oil and Gas Company, Oman
  • SV Oil and Natural Gas Limited, Mauritius
  • Natural Oil and Gas Services Limited, Mauritius

 

 

 

CAPITAL STRUCTURE

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

70000000

Equity Shares

Rs.10/- each

Rs. 7000.000

Millions

500000

11% Redeemable Non – Convertible Preferance Shares

Rs.100/-each

Rs. 50.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

46360501

Equity Shares

Rs.10/- each

Rs. 463.605

Millions

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

463.605

439.026

439.047

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

8782.649

6611.231

5714.410

4] Equity Share Warrants

0.000

396.000

396.000

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

9246.254

7446.257

6549.457

LOAN FUNDS

 

 

 

1] Secured Loans

16777.020

13175.253

6606.978

2] Unsecured Loans

510.727

590.629

713.656

TOTAL BORROWING

17287.747

13765.882

7320.634

DEFERRED TAX LIABILITIES

974.449

532.689

247.182

 

 

 

 

TOTAL

27508.450

21744.828

14117.273

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

18404.922

14802.566

5653.067

Capital work-in-progress

2243.306

491.061

3220.543

 

 

 

 

INVESTMENT

567.767

567.267

75.057

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
730.037

850.985

221.165

 

Sundry Debtors
3084.082

2029.128

2103.872

 

Cash & Bank Balances
430.192

809.609

610.405

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
5905.238

4534.870

3394.051

Total Current Assets
10149.549

8224.592

6329.493

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
2393.331

1206.864

386.020

 

Other Current Liabilities
1055.371

750.712

572.686

 

Provisions
575.307

491.727

362.834

Total Current Liabilities
4024.009

2449.303

1321.540

Net Current Assets
6125.540

5775.289

5007.953

 

 

 

 

MISCELLANEOUS EXPENSES

166.915

108.645

160.653

 

 

 

 

TOTAL

27508.450

21744.828

14117.273

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

10718.028

6803.898

4101.762

 

 

Other Income

169.966

61.696

81.872

 

 

TOTAL                                     (A)

10887.994

6865.594

4183.634

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Direct Expenses

5533.727

3277.741

2018.820

 

 

Personnel Expenses

541.908

324.678

207.461

 

 

Administrative and Other Expenses

723.627

541.723

203.506

 

 

TOTAL                                     (B)

6799.262

4144.142

2429.787

 

 

 

 

 

Less

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

4088.732

2721.452

1753.847

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1766.904

813.516

614.762

 

 

 

 

 

 

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

2321.828

1907.936

1139.085

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

817.196

411.499

323.755

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1504.632

1496.437

815.330

 

 

 

 

 

Less

TAX                                                                  (I)

584.574

548.278

274.099

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

920.058

948.159

541.231

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2630.419

1745.520

1214.289

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

50.000

11.896

10.000

 

 

Dividend

46.360

43.903

0.000

 

 

Tax on Dividend

7.700

7.461

0.000

 

BALANCE CARRIED TO THE B/S

3446.417

2630.419

1745.520

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Contract Revenue

848.201

1046.188

458.797

 

 

Interest on FDR

0.024

0.133

12.397

 

TOTAL EARNINGS

848.225

1046.321

471.194

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Stores & Spares

414.179

92.175

15.582

 

 

Capital Goods

337.026

3431.281

1654.958

 

TOTAL IMPORTS

751.205

3523.456

1670.54

 

 

 

 

 

 

Earnings Per Share (Rs.)

20.93

21.60

14.77

 

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

Type

1st Quarter

2nd Quarter

3rd Quarter

 Sales Turnover

3525.860

2410.500

2885.920

 Total Expenditure

2325.630

1285.060

2091.670

 PBIDT (Excl OI)

1200.230

1125.440

794.250

 Other Income

3.300

153.220

33.690

 Operating Profit

1203.530

1278.660

827.940

 Interest

515.900

586.040

529.470

 Exceptional Items

0.000

(551.510)

0.000

 PBDT

687.630

141.110

298.470

 Depreciation

272.870

243.220

266.640

 Profit Before Tax

414.760

(102.100)

31.830

 Tax

141.200

(23.940)

13.950

 Provisions and contingencies

0.000

0.000

0.000

 Profit After Tax

273.560

(78.160)

17.890

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

273.560

(78.160)

17.890

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
8.45

13.81

12.94

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
14.04

21.99

19.88

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.27

6.50

6.80

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.16

0.20

0.12

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.30

2.18

1.32

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.52

3.36

4.79

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Review of Operations:

 

They believe that their success stands from their business model consisting of wide range of services spanning the entire spectrum for oil and gas exploration and production services i.e. from seismic surveys to deep drilling, well work over drilling, integrated services and specialized projects like coal bed methane (CBM) development services, which involves specialized expertise in directional drilling. Other than their oil and gas service activities in Oman, substantially all of their revenues are derived from their business activities in India. As of 31st March, 2010, 36 sites throughout India are operative. Their principal areas of operations are: -

 

(a) Seismic services

(b) Deep drilling services

(c) CBM development services

(d) Integrated well services

(e) Other services

 

During the year they have commenced operations of six 2000 HP Rigs located at various sites in India, against Rs. 16.10 Billion contract received from ONGC. Contract is to deploy 8 rigs with integrated services like directional drilling, mud engineering etc.

 

The detail of commenced rigs and their location is as under.

 

1) Tripura  - 2000 HP rig

2) Sibsagar  - 2000 HP rig

3)  Sibsagar - 2000 HP rig

4) Rajahmundry - 2000 HP rig

5) Rajahmundry - 2000 HP rig

6) Sibsagar - 2000 HP rig

 

The remaining two rigs commenced operations in current year 2010-11 as under:-

 

- 3000 HP Rig at Sibsagar (Largest onland Rig of India) - in April 2010

 

- 2000 HP at Agartala - in August 2010

 

Three workover rigs also commenced operations at Rajahmundry and Ankleshwar for ONGC during the year.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Indian Economy

Indian Economy has now been showing consistent growth since quite a few years. In FY10 India’s GDP growth turned out to be robust at 8.6% as compared to 5.8% in the previous year. For the fiscal 2009-10 India’s economy grew by 7.4% which is an upward revision from earlier estimates of 7.2% due to higher than anticipated growth in agriculture, mining and manufacturing sectors.

 

During the initial period of 2010-11, growth came from the three sectors, mining, manufacturing and electricity.

As per the use based classification, growth numbers were also found to be remarkable, especially, the capital goods sector, this achieved growth of 72.8% indicating a rise of investment sentiments in the economy. The consumer goods sector appeared to have performed well as it posted growth of 14.4% in April, 2010. This growth is mainly fuelled by high growth in consumer durables, registering an increase of 37% in April 2010. Fifteen out of the seventeen industry sectors witnessed positive growth in the beginning of the present fiscal 2010-11 as compared to the growth in the same month of previous year.

 

Growth in six core infrastructure industries accelerated by 5.1% in April 2010 as compared to 3.7% in April, 2009 this growth is attributed to high performance in the sectors such as finished steel, crude petroleum and petroleum

Industry.

 

The rising indices show strong sentiments among the investors. Indian stock markets continued to perform well and BSE sensex is over 18K in Aug, 2010, whereas NSE index NIFTY rose to stay above 5K points. Foreign exchange reserves stood at over US$ 285 billion. This increase is due to the recent surge in the foreign investment inflows.

 

 

Industry Scenario in India

 

The oil and gas industry has been instrumental in fuelling the rapid growth of the Indian economy. India has total reserves of 5.6 billion barrels of oil and 38 trillion cubic feet of natural gas as on January 1, 2010. The production of oil during 2009 was of 879,000 barrels per day, of which 77% was crude oil, while production of natural gas was for 1,365 billion cubic feet.

 

In the eighth round of the NELP (NELP-VIII), 1.62 sq km area will be covered comprising 70 blocks. Out of 70 blocks, 36 have been awarded.

 

According to Union Minister of Petroleum, the ninth round of New Exploration Licensing Policy (NELP IX) is likely to be launched in the third quarter of 2010.

 

Moreover, the government is planning its first ever offer of shale gas exploration in 2012. Accordingly, Shale gas (gas locked in sedimentary rocks) is an emerging area. It has become an important source of energy in a few countries who have been able to commercially exploit this resource.

 

 

Outlook

 

Crude oil demand is likely to increase to about 235 MMT by 2012

 

  • Rising global crude oil prices have triggered increased exploration and production focus to expand domestic production

 

Gas demand is expected to reach 279 MMSCMD by 2012.

 

  • A CAGR of 12% for the next 5 years. Increased use of gas for power generation, petrochemicals, fertilizers and city gas distribution will drive demand growth

 

Opportunity

 

they believe that domestic spending on exploration and production activities in India is set to continue to increase. According to the Planning Commission’s eleventh five-year plan report, PSUs have tentatively projected spending a total of Rs.1509.300 billion on exploration and production activities from 2007 to 2012.

 

  • Growing demand-supply mismatch provides ample opportunities for investments in Exploration and production of crude oil, gas and CBM.

 

  • The government is actively promoting the creation of strategic oil and gas reserves through partnerships with the private sector

 

  • 72% of the Indian sedimentary area is unexplored – discovery of oil fields by investors such as Cairn Energy and “giant” gas fields by Reliance, ONGC, etc. indicate a large potential for profitable investment in exploration

 

  • An investment need of US$40 billion is expected in exploration and production by 2012

 

New Exploration Licensing Policies:

 

  • The Indian Government has opened up opportunities in the exploration and production of oil and gas fields through the New Exploration Licensing Policy (“NELP”) in the hope that the policy initiatives will induce acceleration in the exploration effort. The NELP licensing procedures were first introduced by the Indian Government in 1997. Between 2000 and 2008, seven rounds of licensing procedures have already taken place, in which a total of 203 exploration blocks were awarded. The eighth round of licensing, NELP VIII, was completed in 2009, with 36 exploration blocks. The Government’s initiative is creating a favourable environment for all market participants in the oil and gas industry to explore and develop the oil and natural gas wells in the country and to realise the potential reserves available. Successful finds in exploration can potentially trigger a much larger scale investment in the development of the oil fields.

 

  • Since the formulation of its CBM policy in 1997, the Indian Government has also opened up opportunities in the exploration and production of CBM through the licensing CBM blocks for the exploration and development of CBM. Four rounds of licensing have already taken place (“CBM I – IV”), in which a total of 36 blocks were awarded.

 

 

Contingent Liability:

 

Particulars

As on

31.03.2010 Rs. in

Millions)

As on

31.03.2009 Rs. in

Millions)

1. Amount unpaid on investment in shares:- 5000 Equity Shares of Parasrampuria Synthetics Limited

0.035

0.035

2. Counter Guarantees given in respect of Guarantees issued by the company’s bankers to Oil and Natural Gas Corporation Limited (ONGC) and Oil India Limited (OIL)

(Includes Rs. 470.000 Millions for Guarantees issued against pledge of 902500 shares of the company held by directors and a third party)

2542.112

2706.537

3. Unexpired letters of credit

251.265

103.475

4. Income Tax Demands in appeal

0.000

7.925

5. Corporate Guarantees given to financial institutions/ banks for securing financial assistance for a subsidiary company and other company

2344.037

6501.286

6. Estimated Value of capital commitments

313.000

643.000

7. Sales Tax Demands (*)

(*) To be adjusted against refund granted for Rs. 13.390 Millions.

1.241

1.241

8. Custom Duty

1.250

1.250

9. Service tax demand

549.531

543.531

Total

6002.471

10508.28

 

 

Fixed Assets:

 

  • Building
  • Plant and Machinery
  • Office Equipments
  • Computers
  • Vehicles
  • Furniture and Fixture
  • Tent
  • Temporary Construction

 

 

Web Details:

 

Overview:

 

They believe that they have a number of competitive strengths that will allow them to benefit from an increasing demand for exploration and production services. These competitive strengths include

 

  • Ability to deliver technical expertise within an integrated business model.
  • Significant cost advantage.
  • Domestic bid advantage.
  • Strong Customer Relationship.
  • Experienced team of senior management and engineers.
  • Shiv-vani is an ISO 9001:2008, BS OHSAS 18001 : 2007, BS EN ISO 14001 : 2004

 

Milestones:

 

A leading private sector onshore Oil and Gas integrated services provider in India and Middle East was incorporated in 1989 and promoted by the Singhee family

 

  • Offering onshore integrated E and P services in India
  • Key Clients -ONGC, OIL, PDO-Shell OMAN
  • Projects spread across over 36 sites in India.
  • Evergreen contract with Petroleum Development Oman
  • Partnerships with global players

 

 

  • Express Drilling Systems (USA)- Executing CBM project in JV
  • Seismic and transit zone technology
  • Running 15 rigs > 1500 hp Capacity for various clients in India
  • Running 3,000 HP rig for ONGC which is the first rig in India
  • Earned NO LTI Award for 5 years from PDO - Shell in Oman.

 

 

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.44.73

UK Pound

1

Rs.73.20

Euro

1

Rs.63.90

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--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

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

66

 

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.