MIRA
INFORM REPORT
|
Report Date : |
01.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
FINOLEX INDUSTRIES LIMITED |
|
|
|
|
Formerly Known
As : |
FINOLEX PIPES LIMITED |
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Registered
Office : |
Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506, |
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Country : |
India |
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|
|
|
Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
28.03.1981 |
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|
|
|
Com. Reg. No.: |
11-24153 |
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|
|
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Capital
Investment / Paid-up Capital : |
Rs.1.240 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L40108PN1981PLC024153 |
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|
|
|
TAN No.: [Tax Deduction and
Collection Account No.] |
KLPF00119A |
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|
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange |
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Line of Business
: |
Manufacturers of PVC Pipes |
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|
|
|
No. of Employees
: |
1000(Approximately) |
RATING and 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 24812584 |
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|
|
|
Status : |
Satisfactory |
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|
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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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.
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 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Gate No.399, Village Urse, Taluka Maval, District Pune – 410 506,
Maharashtra, India. |
|
Tel. No.: |
91-2114-237251 |
|
Fax No.: |
91-2114-237252 |
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E-Mail : |
aa@finolexind.com |
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Website : |
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Corporate Office : |
P-14/1, |
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Tel. No.: |
91-20-27408200 |
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Mktg. No.: |
91-20-27408254 / 27408267 /59 |
|
Fax No.: |
91-20-27477217 / 7475232 / 2293 2939 / 2293 2233/44 |
|
E-Mail : |
aa@finolexind.com kbd@finolexind.com |
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|
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Factory 1: |
|
|
Tel. No.: |
91-2352-238027 / 28 / 29 / 30 / 31 |
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Fax No.: |
91-2352-238033 / 238045 |
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E-Mail : |
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Factory 2: |
D-1/10, MIDC, Chinchwad, Pune-411019, Maharashtra, India. |
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Tel. No.: |
91-20-27443706 |
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Branches : |
Located at:
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DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. P. P. Chhabria |
|
Designation : |
Non Executive Chairman |
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|
|
|
Name : |
Mr. K. N. Atmaramani |
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Designation : |
Independent Director |
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|
|
Name : |
Mr. S.N.Inamdar |
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Designation : |
Independent Director |
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|
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Name : |
Dr. Vijay P. Bhatkar |
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Designation : |
Independent Director |
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Name : |
Dr. Sunil U. Pathak |
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Designation : |
Independent Director |
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Name : |
Mr. P.D. Karandikar |
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Designation : |
Independent Director |
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|
|
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Name : |
Mr. K. Cherian Varghese |
|
Designation : |
Additional Director (Registered effective 23.10.2010) |
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|
|
|
Name : |
Mr. K. P. Chhabria |
|
Designation : |
Executive Vice Chairman |
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|
|
|
Name : |
Mr. Prakash P. Chhabria |
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Designation : |
Managing Director |
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|
|
Name : |
Mr. S.S. Dhanorkar |
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Designation : |
Assistant Managing Director and Chiesf Operating Officer |
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|
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Name : |
Mr. P. Subrsamaniam |
|
Designation : |
Assistant Managing Director and Chiesf Operating Officer |
KEY EXECUTIVES
|
Name : |
Mr. Anil Atre |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,275,360 |
1.03 |
|
|
63,374,505 |
51.08 |
|
|
64,649,865 |
52.11 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
64,649,865 |
52.11 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,854,378 |
1.49 |
|
|
19,719 |
0.02 |
|
|
236,031 |
0.19 |
|
|
4,000,690 |
3.22 |
|
|
6,110,818 |
4.93 |
|
|
|
|
|
|
6,395,669 |
5.16 |
|
|
|
|
|
|
31,005,555 |
24.99 |
|
|
13,079,503 |
10.54 |
|
|
2,818,825 |
2.27 |
|
|
472,448 |
0.38 |
|
|
1,680,450 |
1.35 |
|
|
436,200 |
0.35 |
|
|
229,727 |
0.19 |
|
|
53,299,552 |
42.96 |
|
Total Public shareholding (B) |
59,410,370 |
47.89 |
|
Total (A)+(B) |
124,060235 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
124,026,467 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturers of PVC Pipes |
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Products : |
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Brand Names : |
·
"O" |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
PVC Resin |
M.T. |
260000 |
270124 |
|
PVC Pipes |
M.T. |
122867 |
130601 |
|
PVC Fittings |
M.T. |
735 |
9455 |
|
Power |
MW |
339012 |
258182 |
GENERAL INFORMATION
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No. of Employees : |
1000 (approximately) |
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Bankers : |
· Bank of India · ICICI Bank Limited · Bank of Baroda, India · Citibank N.A. · Bank of Maharashtra · The Bank of Nova Scotia (Scotia Bank), · Corporation Bank ·
The Royal Bank of Scotland N.V. |
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Facilities : |
Notes : 1)
Amount repayable within a year Rs.121.480 million
(Nil)
Notes : 1)
Amount repayable within a year Rs.5052.810
million (Rs.5990.682 Millions) |
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Banking
Relations : |
-- |
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Solicitors and
Advocates: |
Crawford Bayley and Company, Mumbai. |
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Auditors : |
|
|
Name : |
B.K. Khare and Company Chartered Accountants |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000Millions |
|
|
|
|
|
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
124026467 |
Equity Shares |
Rs.10/- each |
Rs.1240.602Millions |
|
|
|
|
|
Subscribed and Paid-up Capital
|
No. of Shares |
Type |
Value |
Amount |
|
124026467 |
Equity Shares |
Rs.10/- each |
Rs.1240.602millions |
|
|
Less : Amount in Arrears, other than from
Directors |
|
Rs.0.154 million |
|
|
|
|
|
|
|
Total |
|
Rs.1240.448
millions |
Note:
1) 367,650 Equity Shares have been allotted for consideration other than in
cash to the shareholders of the erstwhile Finolex Plastics Private Limited
pursuant to the scheme of amalgamation.
2)
5,511,093 Equity
Shares have been issued as fully paid up Bonus Shares on 22.06.1989 by
Capitalisation of General Reserve.
3) 33,768 (Nil) Equity shares were allotted as fully paid bonus shares (on
8550 equity shares kept in abeyance) on 21.02.2011 in terms of the order of the
company Law Board dated 14.09.1999 and the order of High Court of Judicature,
Bombay dated 10.07.2007 by capitalization of General Reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1240.448 |
1240.110 |
1240.087 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves and Surplus |
4962.698 |
4636.726 |
3759.495 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6203.146 |
5876.836 |
4999.582 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2057.187 |
2054.194 |
2549.141 |
|
|
2] Unsecured Loans |
5410.097 |
6280.876 |
5574.902 |
|
|
TOTAL BORROWING |
7467.284 |
8335.070 |
8124.043 |
|
|
DEFERRED TAX LIABILITIES |
800.698 |
734.540 |
760.430 |
|
|
|
|
|
|
|
|
TOTAL |
14471.128 |
14946.446 |
13884.055 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7924.757 |
8356.357 |
5660.150 |
|
|
Capital work-in-progress |
762.210 |
663.794 |
2991.390 |
|
|
|
|
|
|
|
|
INVESTMENT |
2079.878 |
3263.807 |
2645.895 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS and ADVANCES |
|
|
|
|
|
|
Inventories |
4013.140 |
3397.492 |
1706.460 |
|
|
Sundry Debtors |
1059.202 |
362.146 |
492.058 |
|
|
Cash and Bank Balances |
268.561 |
827.433 |
411.095 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans and Advances |
2813.633 |
1956.335 |
2425.109 |
|
Total
Current Assets |
8154.536 |
6543.406 |
5034.722 |
|
|
Less : CURRENT
LIABILITIES and PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2408.611
|
1767.942 |
1727.614 |
|
|
Current Liabilities |
1544.677
|
1619.841 |
529.455 |
|
|
Provisions |
496.965
|
493.135 |
191.033 |
|
Total
Current Liabilities |
4450.253
|
3880.918 |
2448.102 |
|
|
Net Current Assets |
3704.283
|
2662.488 |
2586.620 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
14471.128 |
14946.446 |
13884.055 |
|
PROFIT and LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
20070.861 |
|
|
|
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
|
|
TOTAL (A) |
20070.861 |
14743.799 |
15291.255 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
15898.933 |
10107.502 |
11744.115 |
|
|
|
Salaries, Wages, Bonus, etc. |
505.335 |
413.784 |
376.050 |
|
|
|
Administrative Expenses |
1176.148 |
1785.325 |
2709.505 |
|
|
|
Excise Duty |
0.000 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
17580.416 |
11921.326 |
14829.670 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2490.445 |
2822.473 |
461.585 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
596.628 |
466.066 |
468.266 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1893.816 |
2356.407 |
(6.681) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
744.291 |
616.741 |
583.225 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1149.525 |
1739.666 |
(589.906) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
387.815 |
416.428 |
(210.964) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
761.710 |
1323.238 |
(378.942) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
842.944 |
355.106 |
629.248 |
|
|
|
BALANCE
AVAILABLE FOR APPROPRIATION |
1604.654 |
1678.344 |
250.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
200.000 |
200.000 |
NA |
|
|
|
Debenture Redemption Reserve |
150.000 |
200.000 |
|
|
|
|
Dividend |
372.100 |
372.100 |
124.100 |
|
|
|
Tax on Dividend |
63.300 |
63.300 |
21.100 |
|
|
BALANCE CARRIED
TO THE B/S |
819.254 |
842.944 |
355.106 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
12449.719 |
8720.965 |
8928.459 |
|
|
|
Stores and Spares |
13.266 |
48.952 |
18.556 |
|
|
|
Capital Goods |
50.647 |
19.165 |
148.884 |
|
|
TOTAL IMPORTS |
12513.632 |
8789.082 |
9095.899 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.14 |
10.67 |
(3.06) |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
|
|
|
30.06.2011 |
|
|
|
|
|
1st
Quarter |
|
Net Sales |
|
|
|
5063.420 |
|
Total Expenditure |
|
|
|
4454.870 |
|
PBIDT (Excl OI) |
|
|
|
608.550 |
|
Other Income |
|
|
|
15.490 |
|
Operating Profit |
|
|
|
624.040 |
|
Interest |
|
|
|
171.930 |
|
Exceptional Items |
|
|
|
(35.850) |
|
PBDT |
|
|
|
416.260 |
|
Depreciation |
|
|
|
184.260 |
|
Profit Before Tax |
|
|
|
232.000 |
|
Tax |
|
|
|
65.000 |
|
Provisions and contingencies |
|
|
|
0.000 |
|
Profit After Tax |
|
|
|
167.000 |
|
Extraordinary Items |
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
|
Net Profit |
|
|
|
167.000 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.79
|
8.97 |
(2.47) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.15
|
11.67 |
(5.51) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
18.53
|
29.60 |
(0.12) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
205.03
|
220.36 |
226.67 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
183.24
|
168.60 |
205.66 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject formerly Finolex Pipes Limited, incorporated in 1981
a part of the Finolex group (FG) is the largest PVC pipe manufacturer in the
country. It is also the second public venture of the FG after Finolex Cables
(FCL). The company offers a wide range of PVC pipes and fittings suitable for
diverse applications in agriculture, housing, telecommunication and for other
segments of the industry.
The company latter integrated backward to manufacture PVC resin which finds
application in pipes, fittings, electric cables, packaging film, etc. For this
the company came out with a rights issue to part-finance its project to
manufacture 0.130 Million TPA of PVC resin at Pawas,
The main raw material of the company is Ethylene Di-Chloride (EDC) apart from
Ethylene. The company depends heavily on imported EDC for the manufacture of
PVC.
Finolex Polymers is a wholly-owned subsidiary of the company. Pipes division of
the company has been granted Quality Systems Certification License as per
IS/ISO 9002 by the Bureau of Indian Standards. The PVC plant of the company has
undertaken work to obtain ISO 14001 (Environment Management System)
certification. It has divested its holdings in Finolex Polymers, subsequent to
this effect the Finolex Polymers has ceased to be a subsidiary of the company.
The company has proposed to expand PVC manufacturing capacity at its Ratnagiri
plant. It has already in the process of increasing the capacity PVC pipes at
Ratnagiri. The company is also planning to increase 26000 mts p. a at Ratnagiri
taking the total installed capacity of pipes to 52000 mts p.a. The Company is
also proposed to expand its PVC capacity at Ratnagiri from 130 000 tons to 260
000 tons. In this regard it has signed agreements with OXY
In April, 2002 the buy-back of equity shares to the extent of Rs.553.945
million consisting 19978977 equity shares at average price of Rs.27.73 per
share. It has also made a second buy back of 2829128 equity shares at average
price of Rs.30.83 per share at a consideration of Rs.87.2 million. During the
year 2003, the Company successfully completed its second buy back of shares by
buying and extinguishing 5200347 Equity Shares at an average price of Rs.34.24
per share at a consideration of Rs.178.072 million. With this buyback, the
total paid up share capital of the company decreased to Rs.1240.179 million as
on 27th July 2003.
During the year 2004-05, the company's jetty at Ratnagiri has achieved the
distinction of being an ISPS Code (International Code for the Security of Ships
and of Port Facilities) compliant Jetty and this is the first private ports to
receive this distinction. Also KPMG Quality Register (Accredited by the Dutch
Council for Accreditation has approved company's Ethylene Terminal Facility for
registration to ISO 9001:2000 and has issue a certificate of registration for
the scope of port management for handling liquid and cryogenic cargoes.
In the year 2004-05, the company has increased its installed
capacity of PVC Pipes by 1450 MT. With this expansion, the total installed
capacity of PVC Pipes has increased up to 59400 MT.
MANAGEMENT
DISCUSSION AND ANALYSIS
INTRODUCTION:
The Year has been one of consolidation and productivity improvement for
the company.
FINANCIAL REVIEW:
The Company's two
divisions viz. PVC Resin and PVC Pipes and Fittings have shown improved
production and
sales growth in
volume and in terms of value during the year. The profit margins have been
under pressure as compared to the previothen year due to increase in raw
material prices.
Global Economy and its Effect on the Company
Jthent when the
global economy was showing signs of consolidation, the political crisis in the
Middle East has once again led to uncertainty. The crude oil prices have moved
up from THEN$ 80 to THEN$ 120 per barrel in a short span of 4 months. The
commodity prices are once again volatile due to uncertain global developments
though the demand supply scenario has shown improvement during the year as
compared to past year. Uncertain times still continue with some more economies
in Europe showing financial crisis which requires to be resolved. A very high
inflation rate, supply constraints, and governance issues have significantly
affected the Indian economic situation during the year. Hotheyver, the economy
has shown resilience in spite of all these impediments, by showing good GDP
growth of over 8.5%. The rural economy is also growing at a good pace which has
given an impetthen to Pipes demand of the Company.
INDTHENTRY OUTLOOK:
PVC Resin Btheniness
The domestic
demand for PVC Resin grew by 7% during the year. The demand-supply gap is being
filled in by imports. The total imports theyre around 700,000 MT during the
year. It is expected that this trend will continue over the years to come.
The raw material
prices have increased significantly during the year which theyre not
commensurate with the increase in finished goods prices thereby affecting the
profit margins of the Company.
PVC Pipes Btheniness:
The demand for PVC
Pipes continued to show strong growth for the third year in succession. The
growth in demand during the year for the Company's products was over 20%. The
bulk of the PVC Pipes demand comes from rural areas for Agriculture and
Irrigation sectors. Due to the large network of dealers spread across pan
India, the Company has been able to reach even the remotest villages where the demand
for PVC Pipes exists. Due to the improvement in the real estate sector during
the year, the Company was able to post growth in the sale of Plumbing and
sanitation Pipes which was entirely due to the highest quality of the product
and the strong brand equity of the Company.
It is expected
that the Government will continue its thrthent on agriculture and rural sectors
which will enhance further demand for Pipes. The Company has initiated steps to
augment its production capacity at the existing locations by debottlenecking to
the extent of additional 20,000 MTs and also by putting up a new Pipes Plant in
the state of Gujarat of 50,000 MTs capacity. With this increased capacity the
Company will cross the major milestone of 2,00,000 MT capacity per annum.
FinanceThe interest and finance charges for the year theyre Rs. 466.066 millions as against Rs. 466.066 millions for the previothen year. Corporate GovernancePursuant to clathene 49 of the listing agreements entered into with the stock exchanges, a separate section on corporate governance and a certificate obtained from the auditors of the Company regarding compliance with the conditions of corporate governance are forming part of this annual report.
CONTINGENT
LIABILITIES:
.
i)
Guarantees given by the Company Rs. 156.507 (Rs. 192.331 Millions)
ii)
Claims against the Company not acknowledged as debt:
a)
Liabilities in respect of income tax matters for which the Company has
succeeded in appeal but Income Tax Department has gone in further appeal and
exclthenive of the effect of similar matters in respect of pending assessments,
Rs. 3.037 Millions (Rs.3.037 Millions).
b)
Liabilities in respect of income tax matters for which the Company has gone in
further appeal and exclthenive of the effect of similar matters in respect of
pending assessments, Rs.88.775 Millions (Rs. 88.775 Millions).
c)
Excise/Cthentoms/Service Tax in respect of which either show cathene notice is
received or the Company/Department is in appeal, Rs. 243.529 Millions (Rs.
2478.44 Millions).
d)
Amounts claimed by banks in respect of derivative transactions which are under dispute
not acknowledged as debt Rs. 2397.754 Millions. (Rs. 2947.416 Millions).
Estimated
amount of contracts remaining to be executed on capital account and not
provided for (net of advance payments), Rs. 1424.59 Millions (Rs. 2714.73
Millions).
Fixed Assets:
· Land (freehold and leasehold)
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
· Aircraft
CMT REPORT (Corruption, Money Laundering and 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 theyre 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
bettheyen 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.48.92 |
|
|
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.64 |
SCORE and 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 |
Yes |
|
--LITIGATION |
YES/NO |
No |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
No |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
No |
|
--EXPORT ACTIVITIES |
YES/NO |
Yes |
|
--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 theyighted scores obtained from each of the major sections of this
report. The assessed factors and their relative theyights (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 and 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.