MIRA
INFORM REPORT
|
Report Date : |
24.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
SREE RAYALASEEMA ALKALIES AND ALLIED CHEMICALS LIMITED |
|
|
|
|
Registered
Office : |
Gondiparla, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
24.06.1981 |
|
|
|
|
Com. Reg. No.: |
003077 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.864.200 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110AP1981PLC003077 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacture of Caustic Soda and Allied Products. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 7745000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However trade relations are reported as fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.
|
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) |
|
|
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 : |
Gondiparla, |
|
Tel. No.: |
91-8518-280006/7/8 |
|
Fax No.: |
91-8518-280098 |
|
E-Mail : |
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|
Website : |
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|
|
|
|
Corporate Office : |
40-304, 2nd Floor, K J. Complex, Bhagyanagar, |
|
Tel. No.: |
91-8518-289602/03/220164/228750 |
|
Fax No.: |
91-8518-289602/03/220164/228750 |
|
|
|
|
Administrative office : |
TGV Mansions II Floor, Opposite Institute of Engineers,#
6-2-1012 |
|
Tel. No.: |
91-40-3313860 |
|
Fax No.: |
91-40-3313875 |
|
|
|
|
Branch Office : |
|
|
Tel. No.: |
91-44-4994791/2/3, 4994383 |
|
Fax No.: |
91-44-4939880 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. T G Venkatesh |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. M P Murti |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S K Ganguli |
|
Designation : |
Nominee (IFCI) |
|
|
|
|
Name : |
Mr. P N Vedanarayanan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G Krishna Murthy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. O D Reddy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K Karunakar Rao |
|
Designation : |
Executive Director (Finand Com) |
|
|
|
|
Name : |
Mr. N Jeswanth Reddy |
|
Designation : |
Executive Director (Technical) |
KEY EXECUTIVES
|
Name : |
Mr. V Radhakrishna Murthy |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. P Sitaram |
|
Designation : |
Nominee (IDBI) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
862,137 |
1.28 |
|
|
27,198,521 |
40.30 |
|
|
28,060,658 |
41.58 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
28,060,658 |
41.58 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
37,787 |
0.06 |
|
|
21,068,971 |
31.22 |
|
|
21,106,758 |
31.27 |
|
|
|
|
|
|
3,454,022 |
5.12 |
|
|
|
|
|
|
9,671,919 |
14.33 |
|
|
4,065,210 |
6.02 |
|
|
1,134,719 |
1.68 |
|
|
1,134,719 |
1.68 |
|
|
18,325,870 |
27.15 |
|
Total Public
shareholding (B) |
39,432,628 |
58.42 |
|
Total (A)+(B) |
67,493,286 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
67,493,286 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacture of Caustic Soda and Allied Products. |
|
|
|
GENERAL INFORMATION
|
Bankers : |
Not Available |
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Brahmayya and Company Chartered Accountants |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital : Rs.870.000 millions
Issued, Subscribed & Paid-up Capital : Rs.864.200
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 |
864.200 |
864.200 |
864.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1072.100 |
932.000 |
658.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1936.300 |
1796.200 |
1523.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2222.700 |
2370.300 |
2633.600 |
|
|
2] Unsecured Loans |
286.700 |
213.200 |
246.000 |
|
|
TOTAL BORROWING |
2509.400 |
2583.500 |
2879.600 |
|
|
DEFERRED TAX LIABILITIES |
587.100 |
483.200 |
298.300 |
|
|
|
|
|
|
|
|
TOTAL |
5032.800 |
4862.900 |
4701.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4109.000 |
4023.200 |
4008.300 |
|
|
Capital work-in-progress |
234.500 |
256.400 |
155.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
19.800 |
19.800 |
19.800 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
490.000
|
717.700 |
564.900 |
|
|
Sundry Debtors |
568.400
|
542.100 |
541.400 |
|
|
Cash & Bank Balances |
162.300
|
190.600 |
265.600 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
783.100
|
429.400 |
376.100 |
|
Total
Current Assets |
2003.800
|
1879.800 |
1748.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors & Other Current Liabilities |
1283.500
|
1254.300 |
1195.600 |
|
|
Provisions |
50.800
|
62.000 |
35.300 |
|
Total
Current Liabilities |
1334.300
|
1316.300 |
1230.900 |
|
|
Net Current Assets |
669.500
|
563.500 |
517.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5032.800 |
4862.900 |
4701.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5859.400 |
6815.200 |
4480.600 |
|
|
|
Other Income |
322.800 |
101.200 |
66.600 |
|
|
|
TOTAL (A) |
6182.200 |
6916.400 |
4547.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw material |
3206.800 |
3307.300 |
1879.300 |
|
|
|
Power and fuel cost |
1037.900 |
1175.000 |
845.600 |
|
|
|
Employee cost |
216.900 |
211.900 |
187.200 |
|
|
|
Other manufacturing expenses |
436.600 |
572.400 |
367.200 |
|
|
|
Selling and administration
expenses |
249.100 |
356.600 |
227.900 |
|
|
|
Miscellaneous expenses |
37.100 |
78.900 |
139.200 |
|
|
|
Stock Adjustments |
(18.900) |
(22.500) |
(11.300) |
|
|
|
TOTAL (B) |
5165.500 |
5679.600 |
3635.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION & AMORTISATION (A-B) (C) |
1016.700 |
1236.800 |
912.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
393.400 |
391.800 |
341.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
623.300 |
845.000 |
570.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
327.200 |
325.700 |
293.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
296.100 |
519.300 |
277.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
156.000 |
246.200 |
46.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
140.100 |
273.100 |
230.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
246.000 |
122.900 |
242.400 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
386.100 |
396.000 |
472.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
555.032 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.07 |
4.04 |
3.41 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
31.12.2010 (3rd
Quarter) |
31.03.2011 (4th
Quarter) |
|
Net Sales |
1816.900 |
1729.800 |
1700.400 |
1812.600 |
|
Total Expenditure |
1579.800 |
1489.400 |
1470.000 |
1579.300 |
|
PBIDT (Excl OI) |
237.100 |
240.400 |
230.400 |
233.300 |
|
Other Income |
3.400 |
4.000 |
2.200 |
0.000 |
|
Operating Profit |
240.500 |
244.400 |
232.600 |
233.300 |
|
Interest |
81.600 |
87.300 |
76.400 |
88.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
158.900 |
157.100 |
156.200 |
144.500 |
|
Depreciation |
86.000 |
86.000 |
86.000 |
86.900 |
|
Profit Before Tax |
72.900 |
71.100 |
70.200 |
57.600 |
|
Tax |
14.500 |
14.200 |
14.000 |
17.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
58.400 |
56.900 |
56.200 |
40.600 |
|
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 |
58.400 |
56.900 |
56.200 |
40.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.27
|
3.95 |
5.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.05
|
7.62 |
6.18 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.84
|
8.80 |
4.81 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.29 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.99
|
2.17 |
2.70 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.50
|
1.43 |
1.42 |
LOCAL AGENCY FURTHER INFORMATION
COMPANY
HISTORY:
Subject, the flagship company of TGV Group, manufactures caustic
soda, liquid chlorine, hydrochloric acid, and hydrogen and barium sulphate. The
company started commercial production in Aug.'88 with an initial installed
capacity of 22,440 tpa of caustic soda. Presently the company has the capacity
to produce 69500 TPA of caustic soda The Company uses Bipolar Membrane Cell
Technology, the latest one in the world for the manufacture of caustic soda and
allied products. Since Chlor Alkali industry is power intensive the company is
taking necessary steps to increase its captive power generation. Initially it
has installed two D G sets with a total capacity of 12.4 MW for optimum
utilisation of installed capacity. The company has also produces 3MW of power
from it's Wind power farm set up at a cost of Rs.11.20 part financed by IREDA
to the tune of 8.37 Crores. The company has set up a power plant at
OPERATIONS The turnover for the year was Rs.6300.800 millions as compared to Rs.7519.600 millions in the previous year. The unprecedented floods which occurred during the year impacted the operations resulting in production losses. Price realizations were also lower reflecting the general economic conditions. DIVISION SEGMENT WISE OPERATIONS The Caustic unit has produced 99452 MT of Caustic Soda as against 110223 M.T. for the previous year. As against net sales of Rs.2584.800 millions for previous year the current year sales comes to Rs.2117.500 millions representing a decrease of 18%. The Potassium plant has produced 9041 MT of Potassium Hydroxide as against 15023 MT for the previous year. As against net sales of Rs.1260.700 millions for previous year, the current sales comes to Rs.617.800 millions representing a decrease of 51%. The Castor oil plant yielded 10231 MT of oil processing as against 8036 MT for the previous year. As against net sales of Rs. 609.000 millions for the previous year, the current year sales stood at Rs.677.300 millions representing an increase of 11%. The Fatty acid plant has processed 23275 MT for the current year as against 21935 MT for the previous year. The net sales of this division has decreased from Rs.1245.100 millions to Rs.1192.900 millions representing a decrease of 4%. The Power plant at Bellary has billed 1828 lakhs KWH of electricity (including deemed generation) to Karnakata Power Transmission Corporation Limited (KPTCL) during the current year as against 1813 lacs KWH for the previous year. As against sales to KPTCL (including deemed generation billing) of Rs.1101.600 millions for the previous year, the current year sales comes to Rs.1238.600 millions showing an increase of 12%.
MANAGEMENT DISCUSSION AND ANALYSIS The Company is having mainly three Business Division namely:- (1) Chemicals Division(2) Oils and Fats Division(3) Power Division Division wise analysis of Industry Structure, Opportunity and Threats and Out Look are discussed hereunder for information of the members. CHEMICALS DIVISION: Under this division Caustic Soda, Pottasium Hydroxide, Chlorine, Hydrochloric Acid etc. are manufactured. Chlorine is produced as a joint product along with Caustic Soda and Pottasium Hydroxide. Caustic Soda is used in industrial products like paper, pulp, aluminium, pvc, pharmaceuticals etc, chlorine is used in water treatment, pigments, pulp, paper, textiles etc. and Hydrochloric Acid is used in pesticides, cleaning purposes of metal etc. Caustic Soda is a basic chemical and is used in almost all manufacturing processes. The performance of alkalie industry is reflected in the performance of the industry in general and also country's GDP. The Chloro Alkalie industry being power intensive any increase in power cost would affect its performance. The commercial disposal of chlorine is the main concern for any caustic unit. To overcome this Company has obtained in- principle approval of the financial institutions to set up Chloromethane project. The company has achieved financial closure as a step towards implementation of the project. Signs of recovery shown in general market is a good sign towards the optimistic future market. Steep increase in imports of Caustic Soda into the country and withdrawal of Safe Guard Duty are the concerns for the product/division. OILS AND FATS DIVISION: Castor oil derivatives (comprising of Hydrogenated Castor Oil, 12 Hydroxy Stearic Acid and Recinolic Acid), Fatty Acids, Soap noodles, Glycerine and bathing/toilet soap forms part of this division. The raw materials namely Castor Oil, various industrial vegetable oils and crude glycerine are highly volatile in their prices. India POWER DIVISION The power plant at Bellary UNAUDITED FINANCIAL RESULTS
(PROVISIONAL) FOR THE QUARTER/ HALF ENDED 3OTH SEPTEMBER, 2010
(Rs. in Millions)
|
SR. NO. |
PARTICULARS |
QUARTER ENDED 30.09.2010 |
HALF YEAR ENDED 30.09.2010 |
|
|
|
|
|
|
1 |
Gross Sales / Income from Operations |
1891.300 |
3857.500 |
|
|
Less: Excise duty and sales Tax |
161.500 |
310.800 |
|
|
Net Sales / Income From Operations |
1729.800 |
3546.700 |
|
2. |
Other Income |
4.000 |
7.400 |
|
3. |
Total Income |
1733.800 |
3554.100 |
|
4. |
Total Expenditure |
|
|
|
|
a) (Increase)/Decrease in Stock in Trade |
(31.200) |
(27.900) |
|
|
b) Consumption of Raw Materials |
933.200 |
1968.900 |
|
|
c) Purchase of traded goods |
|
|
|
|
d) Consumption of spares, chemicals
and Stores |
76.000 |
150.100 |
|
|
e) Staff cost |
60.200 |
119.600 |
|
|
f) Power and Fuel |
320.300 |
621.900 |
|
|
g) Depreciation |
86.000 |
172.000 |
|
|
h) Other Expenditure |
130.900 |
236.600 |
|
|
Total |
1575.400 |
3241.200 |
|
5 |
Interest |
87.300 |
168.900 |
|
6 |
Exceptional Items |
|
|
|
7 |
Profit/Loss from Ordinary Activities Before Tax |
71.100 |
144.000 |
|
8. |
Provision for Taxation |
|
|
|
|
-MAT |
14.200 |
28.700 |
|
|
-Tax for earlier years |
-- |
-- |
|
|
-Deferred Tax Liability |
* |
* |
|
9 |
Net Profit / Loss from Ordinary Activities After Tax |
56.900 |
115.300 |
|
10 |
Extraordinary Items (Net of tax expenses) |
|
|
|
11 |
Net Profit / Loss for the period |
56.900 |
115.300 |
|
12 |
Paid up Equity Share Capital ( face value Re 10 each) |
675.000 |
675.000 |
|
13 |
Reserves excluding Revaluation Reserve (as per balance sheet) |
|
|
|
14 |
Earnings Per Share (not annualized) |
|
|
|
|
-Basic (Rs.) |
0.85 |
1.71 |
|
|
-Diluted (Rs.) |
0.84 |
1.70 |
|
15 |
Public Shareholding |
|
|
|
|
-Number of shares |
39432628 |
39432628 |
|
|
-% of shareholding |
58.42 |
58.42 |
|
16 |
Promoters and Promoter Group Shareholding |
|
|
|
|
a) Pledged/Encumbered -Number of shares |
1054078 |
1054078 |
|
|
-Percentage of shares (as a % of the shareholding of promoter and
promoter group) |
3.76 |
3.76 |
|
|
-Percentage of shares (as a % of the total share capital of the
company) |
1.56 |
1.56 |
|
|
b) Non-encumbered -Number of shares |
27006580 |
27006580 |
|
|
-Percentage of shares (as a % of the shareholding of promoter and
promoter group) |
96.24 |
96.24 |
|
|
-Percentage of shares (as a % of the total share capital of the
company) |
40.01 |
40.01 |
UN-AUDITED STATEMENT OF ASSETS AND LIABILITIES AS AT 30.09.2010
|
Particulars |
Current half Year Ended 30.09.2010 Un-audited |
|
|
1. Shareholders' Funds |
|
|
|
a. Capital |
|
864.200 |
|
b. Reserve and Surplus |
|
1187.400 |
|
Loan Funds |
|
2257.400 |
|
Deferred Tax Liability |
|
587.100 |
|
Total |
|
4896.100 |
|
|
|
|
|
Fixed Assets |
|
4639.500 |
|
Investments |
|
19.800 |
|
Current Assets, Loans and Advances |
|
|
|
a. Inventories |
555.800 |
|
|
b. Sundry Debtors |
656.000 |
|
|
c. Cash and Bank Balances |
217.200 |
|
|
d. Loans and Advances |
715.100 |
|
|
|
|
|
|
Less: Current Liabilities and Provisions |
|
|
|
a. Liabilities |
1846.000 |
|
|
b. Provisions |
61.300 |
|
|
|
|
|
|
Net current Assets |
|
236.800 |
|
Total |
|
4896.100 |
Quarterly reporting of Segment Wise Revenue, Results and Capital
Employed under clause 41 of the listing agreement
(Rs. in Millions)
|
SR. NO. |
PARTICULARS |
QUARTER ENDED 30.09.2010 |
HALF YEAR ENDED 30.09.2010 |
|
|
|
|
|
|
1. |
Segment Revenue |
|
|
|
|
a) Chemicals |
809.700 |
1550.200 |
|
|
b)Oils& Fats |
711.400 |
1405.300 |
|
|
c) Power Plant |
237.700 |
642.000 |
|
|
Total |
1758.800 |
3597.500 |
|
|
Less : Inter segment revenue |
29.000 |
50.800 |
|
|
Net Sales/Income
from Operations |
1729.800 |
3546.700 |
|
2. |
Segment Results Profit / (Loss) Before Tax and Interest |
|
|
|
|
a) Chemicals |
110.800 |
202.600 |
|
|
b)Oils& Fats |
42.700 |
83.300 |
|
|
c) Power Plant |
0.900 |
19.600 |
|
|
Total |
154.400 |
305.500 |
|
|
Less : I) a) Interest Expenses |
87.300 |
168.900 |
|
|
b) Interest Income |
(4.000) |
(7.400) |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.28 |
|
|
1 |
Rs.73.30 |
|
Euro |
1 |
Rs.63.61 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
28 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.