MIRA INFORM REPORT

 

 

Report Date :

21.05.2011

 

IDENTIFICATION DETAILS

 

Name :

BALAJI AMINES LIMITED

 

 

Registered Office :

Balaji Bhavan, 165 – A, Railway Lines, Solapur-413001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

27.10.1988

 

 

Com. Reg. No.:

049387

 

 

Capital Investment / Paid-up Capital :

Rs.64.802 Millions

 

 

CIN No.:

[Company Identification No.]

L24132MH1988PLC049387

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEB02668B

 

 

Legal Form :

A Public limited liability company. The company’s shares are listed on the Stock Exchange

 

 

Line of Business :

Manufacturing of Speciality Chemicals, Aliphatic Amines and Derivatives

 

 

No. of Employees :

200 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 3500000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

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

 

NOTES :

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

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

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 :

Balaji Bhavan, 165-A, Railway Lines, Solapur-413001, Maharashtra, India

Tel. No.:

91-217-2620825 / 2721182 / 2620822

Fax No.:

91-217-2620821/2310821

E-Mail :

amines@pn2.vsnl.net.in

info@balajiamines.com

spr_amines@sanchanet.in

cs@balajiamines.com

Website :

http://balajiamines.com/

 

 

Administrative  Office :

3rd Floor, KPR House, Sardar Patel Road, Secunderabad – 500 003, Andhra Pradesh, India

Tel. No.:

91-40-27847122/27898206/27814490

Fax No. :

91-40-27816171

E-Mail :

amines@hd2.vsnl.net.in

infohyd@balajiamines.com

 

 

Factory 1 :

Tamalwadi Village, Tuljapur (TQ), Osmanabad District, Maharashtra – 413 623, India

Tel. No.:

 91-2471-265013/265014/265015

Fax No.:

factoryoffice@balajiamines.com 

osd_aminefac@sancharnet.in

 

 

Factory 2 :

Plot No. 4 and 5, Beside Apseb Sub Station 2, IDA, Bollaram – 502325, Medak District, Andhra Pradesh, India

 

 

Factory 3 :

Plot No. E-7 and 8 MIDC, Chincholi, Solapur-413255, Maharashtra, India

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Mr. M. R. Krishnaiah

Designation :

Chairman

 

 

Name :

Mr. A. Prathap Reddy

Designation :

Managing Director

 

 

Name :

Mr. N. Rajeshwar Reddy

Designation :

Whole Time Director

 

 

Name :

Mr. D. Ram Reddy

Designation :

Whole Time Director

 

 

Name :

Mr. G. Hemanth Reddy

Designation :

Whole Time Director

 

 

Name :

Mr. T. Naveena Chandra

Designation :

Independent Director

 

 

Name :

Mr. S. Vishnu Rao

Designation :

Independent Director

 

 

Name :

Mr. S. V. Pattabhiraman

Designation :

Independent Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Hemish Purushotiam

Designation :

Company Secretary

 

 

Audit Committee:

Name :

Mr. T. Naveena Chandra

Designation :

Chairman

 

 

Name :

Mr. M R Krishnajah

Designation :

Member

 

 

Name :

Mr. S Vishnu Rao

Designation :

Member

 

 

Name :

Mr. S V Pattabhi Raman

Designation :

Member

 

 

SHARE HOLDERS’ / INVESTORS’:

 

 

Name :

Mr. T. Naveena Chandra

Designation :

Chairman

 

 

Name :

Mr. S Vishnu Rao

Designation :

Member

 

 

Name :

Mr. A Prathap Reddy

Designation :

Member

 

 

RESEARCH AND DEVELOPMENT COMMITTEE:

 

 

Name :

Me. Prathap Reddy

Designation :

Chairman

 

 

Name :

Mr. N Rajeshwar Reddy

Designation :

Member

 

 

Name :

Mr. G Heamanth Reddy

Designation :

Member

 

 

REMUNERATION COMMITTEE:

 

 

Name :

Mr. M R Krishnaiah

Designation :

Chairman

 

 

Name :

Mr. S Vishnu Rao

Designation :

Member

 

 

Name :

Mr. T Naveena Chandra

Designation :

Member

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

Total No. of Shares

Total Shareholding as a % of total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

12,744,375

39.33

Bodies Corporate

4,712,415

14.54

Sub Total

17,456,790

53.88

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

17,456,790

53.88

(B) Public Shareholding

 

 

(1) Institutions

 

 

Financial Institutions / Banks

5

-

Sub Total

5

-

(2) Non-Institutions

 

 

Bodies Corporate

1,519,601

4.69

Individuals

 

 

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

6,256,216

19.31

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

6,460,898

19.94

Any Others (Specify)

707,490

2.18

NRIs/OCBs

680,729

2.10

Clearing Members

26,761

0.08

Sub Total

14,944,205

46.12

Total Public shareholding (B)

14,944,210

46.12

Total (A)+(B)

32,401,000

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Speciality Chemicals, Aliphatic Amines and Derivatives

 

 

Products :

Product Description

Item Code

Methyl Amines

292111

Ethyl Amines

292111

Derivatives

292111

 

 

  • Reserpine
  • Capsaicin
  • Camptothecin and Derivatives
  • Aloe Gel Freeze Dried
  • Aloe Gel Spray Dried
  • Centella Asiatica Extract
  • Vitamin E Natural
  • Ajmalicine
  •  Ajmaline
  • Deserpedine
  • Rauwolfia Alkaloids

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Installed Capacity

(TPA)

Actual Production

(MT)

Aliphatic Amines and Derivatives of Amines

55000

43809.228

Natural Products (Research and Development)

48

--

 

 

GENERAL INFORMATION

 

No. of Employees :

200 (Approximately)

 

 

Bankers :
  • State Bank of Hyderabad
  • State Bank of India
  • ING Vysya Bank
  • Bank of Baroda

 

 

Facilities :

Secured Loan

As on 31.03.2010

(Rs. in Millions)

As on 31.03.2009

(Rs. in Millions)

State Bank of Hyderabad

383.425

464.387

State Bank of India

(Term Loan secured by first charge on fixed assets of the company, both present and future and mortgage by deposit of the land title deeds)

45.598

60.689

Bank of Baroda

(Term loan secured by first charged on wind electric generator)

25.000

0.000

State Bank of Hyderabad

285.811

265.105

State Bank of India

213.966

209.052

ING Vysa Bank Limited

(Towards working capital limits, secured by way of hypothecation of stocks and book debts and second charge on all fixed assets of the company, both present and future)

The above borrowings are also supported by personal guarantee of directors of the company Viz. Mr. A Prathap Reddy, Mr. N Rajeshwar Reddy, Mr. D Ram Reddy and Mr. G Hemanth Reddy

Hire Purchase Loans

43.074

18.624

Total

996.874

1017.857

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

V. Sridhar and Company

Chartered Accountants

Address :

Hyderabad, Andhra Pradesh, India

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

9000000

Equity Shares

Rs.10/- each

Rs.90.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

6480200

Equity Shares

Rs.10/- each

Rs.64.802 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

64.802

64.802

64.802

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

827.196

639.656

501.185

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

891.998

704.458

565.987

LOAN FUNDS

 

 

 

1] Secured Loans

996.874

1017.857

834.145

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

996.874

1017.857

834.145

DEFERRED TAX LIABILITIES

268.496

212.345

149.074

 

 

 

 

TOTAL

2157.368

1934.660

1549.206

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1203.182

770.150

706.170

Capital work-in-progress

23.585

357.292

56.980

 

 

 

 

INVESTMENT

44.028

42.949

13.242

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
319.989
330.993

334.132

 

Sundry Debtors
667.310
585.095

594.327

 

Cash & Bank Balances
36.206
23.687

55.129

 

Other Current Assets
9.650
6.771

4.029

 

Loans & Advances
250.024
116.833

155.089

Total Current Assets
1283.179
1063.379

1142.706

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
318.344

232.909

 

Other Current Liabilities
6.309
17.917

335.552

 

Provisions
71.953
48.284

34.340

Total Current Liabilities
396.606
299.110

369.892

Net Current Assets
886.573
764.269

772.814

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2157.368

1934.660

1549.206

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

2618.958

2516.868

2178.195

 

 

Other Income

14.563

28.707

9.251

 

 

TOTAL                                     (A)

2633.521

2545.575

2187.446

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw material consumed

1464.185

1562.360

1256.936

 

 

Manufacturing, selling and administrative expenses

657.528

528.622

466.080

 

 

Sales tax /  value added tax

61.580

60.176

63.275

 

 

Prior period items

(3.640)

0.000

0.000

 

 

Increase / decrease in stocks

(27.195)

(4.637)

93.914

 

 

TOTAL                                     (B)

2152.458

2146.521

1880.205

 

 

 

 

 

Less

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

481.063

399.054

307.241

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

97.059

101.860

79.179

 

 

 

 

 

 

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

384.004

297.194

228.062

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

68.360

48.156

44.008

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

315.644

249.038

184.054

 

 

 

 

 

Less

TAX                                                                  (H)

109.149

95.772

51.446

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

206.495

153.266

132.608

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

21.000

12.000

NA

 

 

Dividend

16.200

12.960

NA

 

 

Tax on Dividend

2.753

1.836

NA

 

BALANCE CARRIED TO THE B/S

166.542

126.470

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

31.87

23.65

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
7.84

6.02

6.33

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
12.05

9.89

8.45

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
12.64

13.58

12.44

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.35

0.35

0.33

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.56

1.87

2.13

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.23

3.55

3.09

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

OPERATING RESULTS AND BUSINESS

 

During the year, the company has achieved a Gross turnover of Rs. 2771.400 Millions as compared to the turnover of Rs. 2735.800 Millions achieved during the previous year. This growth was achieved despite Global slowdown and consequent pressure on prices and volumes. However, even with a marginal increase in turnover, the company registered an impressive year on year growth of 34.70% in Profit after Tax from Rs.153.300 Millions in the previous year to Rs. 206.500 Millions in the Current year.

 

The  Company's consistent performance can be primarily attributed to increase in plant efficiencies, continuous power supply through captive co-generation power plant and long term purchase contracts entered with suppliers of raw materials which has optimised the consumption co-efficients of materials compared to previous year and stringent cost control measures implemented by the management across the plants. Exports: Though the Gross turnover increased marginally, the net exports have increased by 14.56% over the previous year figures of Rs. 582.000 Millions to Rs. 671.700 Millions.

 

 

MANAGEMENT DISCUSSION & ANALYSIS REPORT

 

INDUSTRY STRUCTURE, DEVELOPMENT AND OUTLOOK

 

The Company is a manufacturer and international supplier in the field of Fine chemicals, specialty chemicals, aliphatic amines and derivatives. The company has three manufacturing facilities, Unit-I is located at Tammalwadi, Tuljapur, Maharashtra, Unit-II is located at IDA Bollaram, Hyderabad, and Unit-Ill is located at MIDC, Chinholi. BAL possesses an excellent R and D team of professionals and state of the art facilities, which supports in conducting basic research and development of new products and also fine tuning the existing processes.

 

The company caters to various Industries which are backbone of Indian Economy and has market presence in the

Following growth oriented areas;

 

  • Active Pharma Ingredients
  • Agro Chemicals
  • Refineries (lube extraction)
  • Water Treatment Chemicals
  • Rubber Chemicals
  • Photographic Chemicals

 

India has become a leader in the fields of API's pharmaceuticals, CRMS and drug discovery for Global pharmaceutical companies. Balaji Amines provides the vital raw material inputs to majority of these companies and given the standing company's products enjoy, the demand is increasing and the company is being recognized as a dependable supplier in the long run.

 

In addition to the domestic market the company has developed a long term vendor relations with its overseas customers and a large amount of company's efforts are being focused on the development of overseas markets. The management is of the view that the demand for the company's products ranges from being stable to increasing in nature and thus consistent and continuing market exists for the company's products.

 

However, keeping in view the need for improving one's product range the company is constantly developing and increasing its product range by conscious and continuous R & D efforts in developing new products, expanding existing capacities, and fine tuning the existing plant's processes.

 

 

FUTURE OUTLOOK

 

The outlook for the business is generally encouraging and demand for our products, in various sectors like API'S,

Agrochemicals, water treatment chemicals, Refineries etc., are increasing and overall outlook is favorable. With a host of new products lined up through sustained R and D efforts the management is confident of maintaining a positive growth path in the coming years.

 

 

Fixed Assets:

 

·         Land

·         Building

·         Wind Electric Generator

·         Plant and Machinery

·         Furniture and Fixtures

·         Office Equipments

·         Vehicles

·         Weigh Bridge

·         Morpholine (R and D Division)

·         Plant and Machinery- GBL

·         Amines (R and D Division)

·         Fire Hydrant System

 

 

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2011

 

Rs. in Millions

Particular

Quarter Ended

Year Ended

 

31.03.2011

31.03.2011

 

 

 

(a) Net Sales / Income from operations

902.706

3570.956

(b) Other Operating Income

0.000

0.000

Total Income

902.706

3570.956

Expenditure

 

 

 (Increase) / Decrease in stock in trade and work in progress

(219.025)

(224.158)

Consumption of raw materials

673.359

2141.119

Employees cost

39.414

137.848

Depreciation

23.796

82.610

Other expenditure

262.317

887.491

Total

779.861

3024.910

Profit from operations before other income, interest and exceptional Items

122.845

546.046

Other income

2.522

19.315

Profit before interest and exceptional Items

125.367

565.361

Interest

44.255

135.583

Profit after Interest but before Exceptional Items

81.112

429.778

Exceptional Items

0.000

0.000

Profit (+)/Loss(-) from Ordinary Activities before tax

81.112

429.778

Tax expense

 

 

Current tax

24.994

95.540

Deferred tax

39.367

68.102

Net Profit (+)/Loss(-) from Ordinary Activities after

tax

16.751

266.136

Extraordinary items

0.000

0.000

Net Profit (+) / Loss (-) for the year period

16.751

266.136

Paid up equity share capital (Face value of Rs.10/- per share)

64.802

64.802

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

--

--

Earning per share (EPS)

 

 

 (a) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

0.52

8.21

(a) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

0.52

8.21

Public shareholding

 

 

          Number of shares

14944210

14944210

          Percentage of shareholding

46.12

46.12

Promoters and Promoters group Shareholding-

 

 

a) Pledged /Encumbered

 

 

Number of shares

6732000

6732000

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

38.56

38.56

Percentage of shares (as a % of total share capital of the company)

20.79

20.79

b) Non  Encumbered

 

 

Number of shares

10724790

10724790

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

61.44

61.44

Percentage of shares (as a % of total share capital of the company)

33.10

33.10

 

 

 

STATEMENT OF ASSETS AND LIABILITIES AS AT 31ST MARCH, 2011

 

 

 

 

Rs in Millions

Particulars

Year ended

As on 31.03.2011

(Audited)

 

 

SHAREHOLDERS FUNDS

 

Share Capital

64.802

Reserves & Surplus

1407.261

LOAN FUNDS

1654.700

 

 

TOTAL

3126.763

 

 

FIXED ASSETS

1715.106

INVESTMENT

85.528

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

Inventories

705.976

Sundry Debtors

737.499

Cash & Bank Balances

90.304

Other Current Assets

6.694

Loans & Advances

322.528

Total

1863.001

 

 

Less : CURRENT LIABILITIES & PROVISIONS

 

Other Current Liabilities

418.663

Provisions

118.209

Total

536.872

Net Current Assets

1326.129

 

 

TOTAL

3126.763

 

 

Note:

 

  1. The above results have been reviewed by the audit committee and taken on record by the board of directors at the meeting held on 28.04.2011
  2. The board of directors recommended a dividend of 30% on equity shares of face value of Rs.2/- each for the year ended 31st March 2011
  3. During the quarter ended March 31, 2011 the company has not received any investor complaints. No complaint was pending at the beginning of the quarter or lying unresolved at end of the quarter.
  4. Corresponding figures in previous year have been regrouped wherever considered necessary.
  5. Company ha single reportable segment, hence as-17 “Segment Reporting” is not applicable.
  6. The company’s equity shares have been subdivided from the face value of Rs.10/- each to Rs.2/-. The corresponding EPS on equity shares is accordingly revised.

 

# EPS worked out on equity shares of face value of Rs.2/-

@ EPS worked out on equity shares of face value of Rs.10/-

* The shares have been pledged in favour of banks to secure various credit facilities.

 

 

 

WEBSITE DETAILS

 

Subject is one of the leading manufacturers of Aliphatic Amines in India was set up in the year 1988 to cater to the growing requirements of value based Specialty Chemicals. Subject commenced manufacture of Methyl Amines in the year 1989 and subsequently added facilities for manufacture of Ethyl Amines and other derivatives of Methyl Amines and Ethyl Amines.


Subject has been consistently adding capacities and fine tuning process to provide quality products at lowest cost to the customers. World over, Amine technology is a closely guarded process with only a few handful companies having access to such technology. Subject for the first time in India tested on an indigenously developed technology and developed it further over a period of time. Today, subject‘s products are accepted in international markets and have gained the distinct export quality status, which makes it one of the few companies in India having the potential to match the stringent international quality standards for which they have been awarded ISO-9001: 2000 Certification apart from appreciation and continuous orders from global majors for their product range.


Subject’s state-of-the-art manufacturing facility is located at Tamalwadi Village, near Solapur (Maharashtra State, India) The facility is fully equipped with latest technology like digital computerized controlled systems, which facilitates the control of operations from the control room in addition, subject possesses an excellent R and D facilities and laboratory, which helps in conducting basic research and also to fine tune the process.

 

 

 

 

 

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.44.93

UK Pound

1

Rs.72.92

Euro

1

Rs.64.34

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

5

--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

 

50

 

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.