MIRA INFORM REPORT

 

 

Report Date :

20.05.2011

 

IDENTIFICATION DETAILS

 

Name :

KIRLOSKAR INDUSTRIES LIMITED

 

 

Registered Office :

Laxmanrao Kirloskar Road, Khadki, Pune-411003, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

13.06.1978

 

 

Com. Reg. No.:

088972

 

 

Capital Investment / Paid-up Capital :

Rs.97.087 Millions

 

 

CIN No.:

[Company Identification No.]

L29112PN1978PLC088972

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEK09451B

 

 

PAN No.:

[Permanent Account No.]

AAACP3590P

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of Diesel Engines.

 

 

No. of Employees :

6 [Approximately]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 19100000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. 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.

 

 

INFORMATION DECLINED BY

 

Name :

Ms. Ashwini

Designation :

Senior Officer

Date :

16.05.2011

 

 

LOCATIONS

 

Registered Office :

Laxmanrao Kirloskar Road, Khadki, Pune-411003, Maharashtra, India.

Tel. No.:

91-20-25810341

E-Mail :

aditi.chirmule@kirloskar.com

 

 

Factory :

Tirade Village, Taluka Akole, District Ahmednagar.

 

 

DIRECTORS

 

As on 28.07.2010

 

Name :

Mr. Atul C. Kirloskar

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Vikram s. Kirloskar

Designation :

Director

 

 

Name :

Mr. A.N. Alawani

Designation :

Director

 

 

Name :

Mr. Nihal G. Kulkarni

Designation :

Director

 

 

Name :

Mr. V.K. Bajhal

Designation :

Director

 

 

Name :

Mr. S.N. Inamdar (w.e.f. 30 March 2010)

Designation :

Director

 

 

Name :

Mr. A.R. Sathe (w.e.f. 30 March 2010)

Designation :

Director

 

 

Name :

Mr. Gautam A. Kulkarni (up to 30 March 2010)

Designation :

Joint Managing Director

 

 

Name :

Mr. Rahul C. Kirloskar (up to 30 March 2010)

Designation :

Director (Export)

 

 

Name :

Mr. R.R. Deshpande (up to 30 March 2010)

Designation :

Executive Director

 

 

Name :

Mr. U.V. Rao (up to 30 March 2010)

Designation :

Director

 

 

Name :

Mr. H.M. Kothari (up to 30 March 2010)

Designation :

Director

 

 

Name :

Mr. P.G. Pawar (up to 30 March 2010)

Designation :

Director

 

 

Name :

Mr. R. Srinivasan (up to 30 March 2010)

Designation :

Director

 

 

Name :

Dr. Naushad Forbes (up to 30 March 2010)

Designation :

Director

 

 

Name :

Mr. M. Lakshminarayan (up to 30 March 2010)

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Ms. Aditi Chirmule

Designation :

Company Secretary

 

 

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

1512880

15.58

Bodies Corporate

4710661

48.52

Sub Total

6223541

64.10

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

6223541

64.10

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

3559

0.04

Financial Institutions / Banks

397125

4.09

Insurance Companies

118176

1.22

Foreign Institutional Investors

1497301

15.42

Sub Total

2016161

20.77

(2) Non-Institutions

 

 

Bodies Corporate

129493

1.33

Individuals

 

 

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

1152003

11.87

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

153102

1.58

Any Others (Specify)

34319

0.35

Clearing Members

4768

0.05

Non Resident Indians

29518

0.30

Foreign Nationals

33

0.00

Sub Total

1468917

15.13

Total Public shareholding (B)

3485078

35.90

Total (A)+(B)

9,708,619

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Diesel Engines.

 

 

Terms :

 

Selling :

--

 

 

Purchasing :

Cash / Credit

 

PRODUCTION STATUS (As on 31.03.2010)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Wind Power

Kwh

NA

11200##

8964**

 

Note:

  • ## Capacity is based on plant load factor as advised by the company technical consultant.
  • ** All units produced have been sold.

 

 

GENERAL INFORMATION

 

No. of Employees :

6 [Approximately]

 

 

Bankers :

HDFC Bank Limited, Khadki Branch, Pune, Maharashtra, India

 

 

Facilities :

Secured Loan [Rs. in million]

31.03.2010

31.03.2009

Term Loan from HDFC Bank Limited

0.000

48.684

Foreign currency Term Loan from HSBC Bank plc, London

0.000

528.826

Foreign currency Term Loan from BNP PARIBAS, Singapore

0.000

1619.499

Foreign currency Term Loan from ICICI Bank Limited, Hongkong

0.000

980.967

Foreign currency Term Loan from ICICI Bank Limited, Hongkong

0.000

196.123

Working Capital Loans from banks

Packing Credit - Foreign Currency

 

0.000

 

115.003

Interest accrued and due on loans

0.000

0.289

Total

0.000

3489.391

 

Unsecured Loan [Rs. in million]

31.03.2010

31.03.2009

Fixed deposits

From Public

 

0.000

 

0.449

From Shareholders

0.000

0.011

Total

0.460

0.460

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Dalal and Shah

Chartered Accountant

Address :

Pune, Maharashtra, India

 

 

Associates :
  • Kirloskar Integrated Technologies Limited (Formerly Known as Kirloskar Kisan Equipment Limited) $
  • Kothrud Power Equipments Limited
  • Kirloskar Ferrous Industries Limited

 

 

Subsidiaries :
  • Kirloskar Engines India Limited *

 

 

Joint Venture Companies:

  • Kirloskar Toyoda Textile Machinery Private Limited #
  • Denso Kirloskar Industries Private Limited #
  • T. G. Kirloskar Automotive Private Limited #
  • Toyota Tsusho India Private Limited #
  • Toyota Kirloskar Auto Parts Private Limited #
  • Toyota Kirloskar Motor Private Limited #
  • Kirloskar Kenya Limited

 

 

Companies controlled by Key Management Personnel
  • Cees Investments and Consultants Private Limited
  • Navsai Investments Private Limited
  • Kirloskar Consultants Limited
  • Achyut and Neeta Holding and Finance Private Limited **
  • Alpak Investments Private Limited **

 

* Upto 31 March 2010

$ Upto 29 March 2010

# Upto 27 November 2009

** Upto 30 March 2010

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50,000,000

Equity Shares

Rs.10/- each

Rs.500.000 Millions

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

9,708,650

Equity Shares

Rs.10/- each

Rs.97.087 Millions

 

 

 

 

 

Subscribed Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

9,708,650

Equity Shares

Rs.10/- each

Rs.97.087 Millions

 

 

 

 

 

Called up and paid up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

9,708,650

Equity Shares

Rs.10/- each

Rs.97.087 Millions

 

 

 

 

 

Note:

 

*9708650 equity shares of Rs.10/- each are issued on 30th April 2010 as fully paid up, under a scheme of Arrangement between Kirloskar Oil Engines Limited an Kirloskar Engines India Limited sanctioned by the honourable high court of the judicature of Bombay, which became effective form 31 March 2010.


 

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

97.087

388.346

388.300

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

4689.389

9212.499

8761.600

4] (Accumulated Losses)

0.000

0.000

0.0000

NETWORTH

4786.476

9600.845

9149.900

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

3489.391

3427.700

2] Unsecured Loans

0.000

0.460

1.200

TOTAL BORROWING

0.000

3489.851

3428.900

DEFERRED TAX LIABILITIES

56.472

317.121

296.200

 

 

 

 

TOTAL

4842.948

13407.817

12875.000

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

288.082

6548.409

6459.700

Capital work-in-progress

0.000

181.376

649.300

 

 

 

 

INVESTMENT

4256.082

4718.832

4763.300

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

1238.798

1940.400

 

Sundry Debtors
193.581

2924.316

3564.600

 

Cash & Bank Balances
197.278

791.132

616.000

 

Other Current Assets
0.000

212.219

0.000

 

Loans & Advances
107.406

1653.456

1334.300

Total Current Assets
498.265

6819.921

7455.300

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
31.111

2454.362

884.600

 

Other Current Liabilities
114.054

1484.285

4690.300

 

Provisions
54.316

922.074

877.700

Total Current Liabilities
199.481

4860.721

6452.600

Net Current Assets
298.784

1959.200

1002.700

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

4842.948

13407.817

12875.000

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

46.601

21092.600

21551.800

 

 

Other Income

460.764

1046.700

715.200

 

 

TOTAL                                     (A)

507.365

22139.300

22267.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee cost

17.423

 

 

 

Operating and other expenses

37.736

 

 

 

 

TOTAL                                     (B)

55.159

19157.900

19760.100

 

 

 

 

 

Less

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

452.206

2981.400

2506.900

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.000

375.900

197.100

 

 

 

 

 

 

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

452.206

2605.500

2309.800

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

30.490

804.100

438.600

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

421.716

1801.400

1871.200

 

 

 

 

 

Less

TAX                                                                  (H)

34.789

642.400

681.700

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

386.927

1159.000

1189.500

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1661.297

1479.500

1494.400

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

38.693

 

 

 

Dividend

291.260

 

 

 

 

Tax on Dividend

49.500

977.200

1204.400

 

BALANCE CARRIED TO THE B/S

1668.771

1661.300

1479.500

 

 

 

 

 

 

Earnings Per Share (Rs.)

39.84

5.80

5.79

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd  Quarter

3rd t Quarter

4th  Quarter

 Sales Turnover

9.500

18.400

9.000

4.500

 Total Expenditure

11.500

9.900

11.800

23.100

 PBIDT (Excl OI)

(2.000)

8.500

(2.800)

(18.600)

 Other Income

78.100

217.700

285.100

66.600

 Operating Profit

76.100

226.200

282.300

48.000

 Interest

0.000

0.000

0.000

0.000

 Exceptional Items

0.000

0.000

0.000

0.000

 PBDT

76.100

226.200

282.300

48.000

 Depreciation

7.600

7.500

7.700

7.700

 Profit Before Tax

68.500

218.700

274.600

40.300

 Tax

12.300

12.100

12.200

12.100

 Reported PAT

56.200

206.600

262.400

28.200

Extraordinary Items       

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

56.200

206.600

262.400

28.200

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
76.26

5.23

5.34

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
904.95

8.54

8.68

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
53.63

13.48

13.45

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.09

0.19

0.20

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.04

0.87

1.08

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.50

1.40

1.16

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

 

 

 

Due to micro and small enterprises

0.000

40.554

884.600

Others

31.111

2413.808

4690.300

Total

31.111

2454.362

5574.900

 

History:

 

Subject is a manufacturer of the widest range of Diesel Engines in India was incorporated on 13th June 1978. KOEL is acknowledged leader in Engines, Engine Bearings, Engine Valves, Diesel Generating Sets, and Grey Iron Castings. Product range of the company includes Diesel Engines, Irrigation Pumpsets, Diesel Generating Sets, Engine Bearings and Engine Valves and Grey Iron Castings. The Company's engines are the preferred choice when it comes to powering Agricultural Machinery, Construction and  Material Handling Machinery, Marine applications and equipment used by Armed Forces (Military). KOEL's Diesel Generating Sets in the range 2 Kva to 6 MW are preferred by the industry at large, households and the service sector comprising of banks, telecommunication establishments, commercial use buildings, hotels and restaurants. Similarly, Engine Bearings and Engine Valves are the chosen ones for OEM use in automobiles and other engines. For manufacturing all the above said products, the company has plants in different places, such as Khadki and Phursungi in Pune, Nasik, Ahmednagar, Rajkot and Kagal. In 1979, the company had obtained a license to manufacture engines up to 3000 hp in collaboration with SEMT Pielstick, France and also in the same year KOEL introduced Aluminium Tin Bearings in the market. KOEL had signed a collaboration agreement with Deutz AG in the year 1989 for manufacturing air-cooled engines under technical license. In the year 1991, the company specially developed 45 types of engine bearings and bushes; the same was exported to MIBA Glietlager AG, Austria by KOEL's Auto Components Division. KOEL's Auto Components Division became the first Indian company in the bearings industry to receive an ISO 9001 certification in the year 1993. The company had acquired crankcase machining in line facility for Pielstick engines during the year 1994 and also in the same year KOEL manufactured the first PA series heavy fuel engines in India - the first such series designed by SEMT Pielstick. In 1996, R1040 series of water-cooled engines (15-125 hp) developed at KOEL's Techcentre and Kirloskar Middle-East established in Ajman, U.A.E. As at August 1997, Kirloskar Filters Limited was merged with the company. A new company Kirloskar Knecht Filters Limited was formed in October of the same year. Launched A17X half bearings and also during the identical year of 1997, Kirloskar Briggs and  Stratton Power Equipment Pvt. Limited was established in collaboration with Briggs and  Stratton, U.S.A., for the manufacture of petrol/kerosene engines, gen sets and pump sets. Oracle Enterprise Resource Planning system goes on-line in the company's environment during the year 1998. The Khadki plant was certified an ISO-14001 for Environment Management System in November of the year 1999. During the year 2001-02, the company had received noteworthy orders for re-power of defense vehicles, and also for supply of engines for Indian Navy ships. Additionally, your company has been awarded a contract to study the feasibility of re-powering certain Naval Ships. KOEL had successfully developed five new engines in the year 2002 that meet the requirements of the OE customers and end users, which not only surpass Indian emission norms, but also meet norms for off road use in United States to Tier I norms and are capable of Tier II up-gradation as it became necessary. Kirloskar power supply company Limited amalgamated with the company on 26th March of the year 2003. The company's fourteen engines were approved by Emission Protection Agency (EPA) in the year 2003-04, the highest number of approvals given as on date to any engine manufacturer in India. During the year 2004-05, the company had delivered two marine engines in range 1600 to 11000 hp and nine generating sets. KOEL had entered into an agreement with Zorya of Ukraine, a reputed manufacturer of gas turbines in the period of 2005-06 to package turbines and offer distributed power generation solutions in 2.5 to 40 MW class. During the year 2006-07, the company introduced 'Kirloskar green' generating sets in 3 potential countries. The Company had invested in a Greenfield project at Kangal, near Kolhapur in Maharashtra during the year 2007-08. The project includes an export oriented unit to manufacture silent generating sets for global customers. The Company successfully upgrades all engines to the required emission standards in year by year and is able to continue supply of the engines to the customers. KOEL gearing up to meet emission norms currently applicable to industrial engines in Europe and in India by 2011 well ahead of time and is getting prepared to meet new emission norms expected to be announced for power generation products in India.

 

 

Scheme of Arrangement, Change of Name and Issue of Shares:

 

During the year, the Hon’ble High Court of Judicature at Bombay approved the Scheme of Arrangement between the Company and Kirloskar Engines India Limited (KEIL) vide its order dated 31 July 2009 read with its order dated 19 March 2010 (the “Scheme”). The Appointed Date of the Scheme of Arrangement is 1 April 2009. The Balance Sheet and Profit and Loss Account and related financial statements have been made, accordingly, pursuant to the provisions of the said Scheme.

 

In terms of the Scheme, the Engines and Auto-components business of the Company was transferred to KEIL with effect from 31 March 2010, and vested in KEIL from the Appointed Date, i.e. 1 April 2009. The Company carried on the business that was transferred to KEIL in trust for it from the period 1 April 2009 to 31 March 2010.

 

Also, pursuant to the Scheme, the name of the Company has been changed from “Kirloskar Oil Engines Limited” to “Kirloskar Industries Limited” with effect from 31 March 2010.

 

97,08,650 equity shares of Rs. 10 each were issued to the members of the Company as on 22 April 2010, the Record Date for the purpose of issue of shares, on 30 April 2010. The equity shares were issued to every member of the Company holding for example 20 equity shares of Rs. 2/- each in the Company as on Record Date i.e. 22 April 2010, 15 Equity shares of Rs. 2/- in KEIL and 1 Equity share of Rs. 10/- credited as fully paid up in the Company.

 

Relisting on Stock Exchanges

 

Further to the issue of shares to the shareholders pursuant to the Scheme, the Company is in the process of making an application for relisting of the new shares, to the Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE), on which its equity shares were already listed.

 

Management Discussion and Analysis:

 

Pursuant to the Scheme of Arrangement, on the transfer of the Engines and Auto-components business of the Company to KEIL, the operations of the Company comprise of windmills. Operational performance of windmills is commented upon hereinafter.

 

Operations of the Company:

 

Windmills

 

The Company has seven windmills in Maharashtra with total installed capacity of 5.6 MW. The Mills are located at Tirade Village, Tal- Akole, Dist – Ahmednagar. These windmills were set up at a total cost of Rs. 285.600 millions. The windmills have generated net wind energy of 8.964 millions units of electricity in the year  as against 10.548 millions units of electricity in the previous year. The units of electricity generated have been consumed by KEIL in its plants located at Khadki, Pune, and Kagal, Kolhapur, before the Scheme of Arrangement came into effect. On the coming into effect of the Scheme, the units of electricity generated will be sold to KEIL. The Company is in the process of discussions with the Maharashtra State Electricity Board (MSEB) for permission to sell these units of electricity generated to KEIL.

 

Others

 

The Company owns lands and buildings thereon in Pune, and apartments and offices in Mumbai, Bangalore, New Delhi and Jaipur. The Company has granted most of these land and buildings, and apartments / offices to KEIL and other companies in the Group on leave and license basis. As on the date of this Report, the Company’s investments stand at Rs. 1750.000 millions (previous year Rs. 4220.000 millions), held in the equity shares of various companies, which are mainly Kirloskar Group companies. During the year , the Company sold equity shares held by it in Kirloskar Toyoda Textile Machinery Private Limited, Toyota Kirloskar Motor Private Limited, Toyota Kirloskar Auto Parts Private Limited, TG Kirloskar Automotive Private Limited, Toyota Tsusho India Private Limited, Denso Kirloskar Industries Private Limited and Kirloskar Integrated Technologies Limited. The proceeds from the sale of the above investments have been invested in various mutual funds. The total corpus invested in Mutual Funds as on 31 March 2010 is Rs. 2500.000 millions (previous year Rs. 500.000 millions).

 

Company Performance:

 

During the year, the Company achieved an income of Rs. 507.000 millions. The profit before tax is at Rs. 422.000 millions after providing for depreciation of Rs. 31.000 millions.

 

Prospects

 

Expected wind energy generation during the Financial Year 2010-11 will be satisfactory. In addition to unit generation, the Company may also get the benefits of Renewable Certificate Mechanism and Clean Development Mechanism benefits under the Voluntary Carbon Scheme.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

 

Particular

 31.03.2010

(Rs. in millions)

Disputed Central Excise demands

0.128

Claims against the Company not acknowledged as debts

43.321

Guarantees given on behalf of third parties

50.000

Total

93.449

 

Fixed Assets:

  • Freehold Land
  • Wind power Generator
  • Leasehold  Land
  • Electrical Installations
  • Computers
  • Vehicles
  • Buildings
  • Plant & Machinery
  • Furniture & Fixtures

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.44.98

UK Pound

1

Rs.72.68

Euro

1

Rs.64.16

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

 

45

 

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.