MIRA
INFORM REPORT
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Report Date : |
08.09.2011 |
IDENTIFICATION DETAILS
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Name : |
FRONTLINE CORPORATION LIMITED |
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Registered
Office : |
4, B.B.D. Bag (East), Stephen House, Room No. -5, 1st
Floor, Kolkata-700001, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
04.12.1989 |
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Com. Reg. No.: |
21-099645 |
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Capital
Investment/ Paid-up Capital: |
Rs. 49.775
Millions |
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CIN No.: [Company Identification
No.] |
L63090WB1989PLC099645 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALF00786C |
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PAN No.: [Permanent Account No.] |
AAACF2403M |
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Legal Form : |
A Public Limited Liability Company. The company’s Shares are listed on
stock exchange. |
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Line of Business
: |
The company has identified fine segments viz “Transportation, Trading,
Manufacturing of Refractory Bricks, Renting of Immovable Properties and Wind
Power Generation. |
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No. of
Employees: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B (35) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 560000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Trade
relations are reported as fair. Business is active. Payments are reported to
be slow but correct. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions. Though the status of the company appears to be listed, the trading of
shares was suspended due to penal reasons. |
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) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
4, B.B.D. Bag (East)l, Stephen House, Room No. -5, 1st
Floor, Kolkata-700001, West |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Corporate Office : |
4th Floor, Shalin Building, Near Nehru Bridge Corner,
Ashram Road, Ahmedabad-380009, Gujarat, India |
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Tel. No.: |
91-79-26578201 |
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Fax No.: |
91-79-26578863 |
DIRECTORS
As on 31.03.2010
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Name : |
Mr. Ram Prasad Agarwal |
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Designation : |
Director |
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Name : |
Mr. Narayan Prasad Agarwal |
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Designation : |
Director |
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Name : |
Mr. Bharat Arora |
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Designation : |
Director |
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Name : |
Mr. Virendra Sharma |
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Designation : |
Director |
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Name : |
Mr. Saurabh Jhunjhunwala |
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Designation : |
Director |
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Name : |
Mr. Pawan Kumar Agarwal |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Name : |
Mr. S.K. Verma |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage |
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(A) Shareholding of Promoter and Promoter Group |
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3,496,668 |
69.93 |
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49,300 |
0.99 |
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3,545,968 |
70.92 |
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Total shareholding of Promoter and Promoter Group (A) |
3,545,968 |
70.92 |
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(B) Public Shareholding |
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337,671 |
6.75 |
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560,188 |
11.20 |
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555,138 |
11.10 |
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1,035 |
0.02 |
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1,035 |
0.02 |
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1,454,032 |
29.08 |
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Total Public shareholding (B) |
1,454,032 |
29.08 |
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Total (A)+(B) |
5,000,000 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
5,000,000 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
The company has identified fine segments viz “Transportation, Trading,
Manufacturing of Refractory Bricks, Renting of Immovable Properties and Wind
Power Generation. |
PRODUCTION STATUS AS ON (31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Electricity |
MT |
-- |
-- |
72.39 |
|
Refractory Bricks |
MT |
N.A. |
4800.00 |
3578.90 |
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
Paresh Thothawala and Company Chartered Accountant |
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Address : |
Ahmedabad |
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Branch Auditors : |
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Name : |
VPC and Associates Chartered Accountant |
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Address : |
Kolkata |
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Associates: |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
6000000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
5000000 |
Equity Shares (Including 563700 Fully Paid up Equity Shares
of Rs. 10/- each issued as Bonus Shares by way of capitalization of
Accumulated Profits) |
Rs. 10/-
each |
Rs. 50.000
Millions |
|
Less: |
Calls in Arrear |
|
Rs. 0.225
Million |
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Total |
|
Rs. 49.775 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
49.775 |
49.775 |
49.770 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
89.686 |
74.200 |
61.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
139.461 |
123.975 |
110.870 |
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LOAN FUNDS |
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1] Secured Loans |
566.731 |
270.860 |
178.620 |
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2] Unsecured Loans |
87.323 |
198.317 |
182.770 |
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TOTAL BORROWING |
654.054 |
469.177 |
361.390 |
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DEFERRED TAX LIABILITIES |
34.893 |
20.898 |
21.980 |
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TOTAL |
828.408 |
614.050 |
494.240 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
392.304 |
417.802 |
279.730 |
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Capital work-in-progress |
1.021 |
0.876 |
7.620 |
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INVESTMENT |
94.518 |
94.638 |
94.280 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
62.379
|
42.691 |
43.320 |
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Sundry Debtors |
123.451
|
76.858 |
61.260 |
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Cash & Bank Balances |
15.862
|
15.976 |
15.990 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
357.569
|
66.154 |
51.110 |
|
Total
Current Assets |
559.261
|
201.679 |
171.680 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
177.129
|
60.729 |
0.000 |
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Other Current Liabilities |
25.9130
|
39.724 |
54.030 |
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Provisions |
15.654
|
0.492 |
5.040 |
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Total
Current Liabilities |
218.696
|
100.945 |
59.070 |
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Net Current Assets |
340.565
|
100.734 |
112.610 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
828.408 |
614.050 |
494.240 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Revenue from Operations |
931.969 |
645.749 |
207.320 |
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Other Income |
36.366 |
20.297 |
11.750 |
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TOTAL (A) |
968.335 |
666.046 |
219.070 |
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Less |
EXPENSES |
|
|
|
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Material Cost |
406.586 |
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Operational Expenses |
372.657 |
341.266 |
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Payment to and Provision for Employees |
28.908 |
21.895 |
202.810 |
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Administrative and Other charges |
33.775 |
21.744 |
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Increase / Decrease in Finished Goods |
0.651 |
0.349 |
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TOTAL (B) |
842.577 |
570.942 |
202.810 |
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|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
125.758 |
95.104 |
16.260 |
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Less |
FINANCIAL
EXPENSES (D) |
44.612 |
33.580 |
17.890 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
81.146 |
61.524 |
[1.630] |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
43.730 |
40.502 |
9.680 |
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|
PROFIT BEFORE
TAX (E-F) (G) |
37.416 |
21.022 |
[11.310] |
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Less |
TAX (H) |
21.930 |
7.918 |
0.000 |
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|
PROFIT AFTER TAX
(G-H) (I) |
15.486 |
13.104 |
[11.310] |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
74.199 |
61.095 |
NA |
|
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|
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|
BALANCE CARRIED
TO THE B/S |
89.685 |
74.199 |
NA |
|
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|
Earnings Per
Share (Rs.) |
3.11 |
2.63 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
208.040 |
207.320 |
147.850 |
437.600 |
|
Total Expenditure |
187.940 |
202.820 |
137.170 |
395.170 |
|
PBIDT (Excl OI) |
20.100 |
4.500 |
10.680 |
42.430 |
|
Other Income |
18.730 |
11.750 |
18.550 |
18.720 |
|
Operating Profit |
38.830 |
16.250 |
29.230 |
61.160 |
|
Interest |
18.140 |
17.890 |
17.580 |
23.270 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
20.690 |
[1.640] |
11.650 |
37.890 |
|
Depreciation |
9.790 |
9.680 |
8.740 |
7.130 |
|
Profit Before Tax |
10.890 |
[11.310] |
2.910 |
30.760 |
|
Tax |
0.000 |
0.000 |
0.000 |
4.600 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
10.890 |
[11.310] |
2.910 |
26.160 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
[0.460] |
0.000 |
0.000 |
[0.040] |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
10.430 |
[11.310] |
2.910 |
26.120 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.60
|
1.97 |
[5.16] |
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
4.01
|
3.26 |
[5.46] |
|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.93
|
3.39 |
[2.51] |
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.17 |
[0.10] |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
6.26
|
4.60 |
3.79 |
|
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|
|
|
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|
Current Ratio (Current Asset/Current Liability) |
|
2.56
|
1.99 |
2.91 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
REVIEW:
The Company has earned Revenue from Operations of Rs. 931.969 Millions
as compared to Rs 645.749 Millions in the previous year registering a robust
increase of 44.32 %. The Company posted Profit before Taxation of Rs. 37.416
Millions in comparison to Profit before Tax of Rs. 21.022 Millions in the
earlier year. The Company earned a Profit after Tax of Rs. 15.486 Millions in
comparison to Rs. 13.104 Millions in the previous year, after prior period
adjustment of Rs. 1.535 Millions in the current year. A Balance of Rs. 89.686
Millions has been carried forward to Balance Sheet.
SEGMENT
INFORMATION
Segments information are given along with financial statements. The
company has identified five segments viz "Transportation, Trading,
Manufacturing of Refractory Bricks, Renting of immovable properties and Wind
Power Generation". The major and material activities of the company are
restricted to three geographical segments i.e. Kolkata, Ahmedabad and
Transportation
The Company has two different kind of contracts viz, "Logistic
Contracts and own trucks contract. Under the logistic contract, the Company
enters into contract with its client for providing logistic support to various
destinations by hiring trucks from the market and ensures transportation of
goods to the designated destinations of its client. Under the contract for
deployment of own trucks, the Company deploys its own trucks/ vehicles with its
client round the clock. The Company expects 15-20% growth in both contracts.
During the year, the Company continued to get / renewed Transportation
Contracts from valued customers to cater needs of its valued clients. The
Revenue from Transport Operations increased to Rs. 378.462 Millions in the previous year to Rs. 358.774 Millions
in the current year registering a slight decrease by 5.20 % due to increased
cost of oil and spare parts. The Company has already restructured its transport
activities for optimum tilization of its fleet of commercial vehicles and is
hopeful to come out with robust results in the days to come. The Company is
confident to increase its turnover in the current year and thus post an
increased profit.
Trading
BOSCH Division is acting as the Main Distributor for Auto Components
manufactured by "BOSCH Limited" for the Automotive Aftermarket and
supplies such spares to Authorised Service Centers of Bosch as well as to
retail outlets and neutral garages and workshops. BOSCH is the global leader in
Automotive Components and "BOSCH" brand products come as OE fitments
in all ranges of vehicles worldwide. With newer models of vehicles being
introduced in the market every year, the business has very good potential in
future. The Revenue from trading Operations of automotive parts of
"BOSCH" increased to Rs. 126.712 Millions in comparison to Rs.
101.106 Millions in the previous year
registering a robust increase of 25.32%. Mahindra and Mahindra Division
is acting as the Super Distributor for Auto Components and Farm Equipment
manufactured by "Mahindra and Mahindra Limited," for the Automotive
Aftermarket. With newer models of vehicles being introduced in the market every
year, the business has very good potential in future. The Revenue from trading
Operations of automotive parts of "Mahindra and Mahindra Limited"
decreased to Rs. 90.888 Millions in comparison to Rs. 64.315 Millions in the
previous year registering a highly increase of 41.32% mainly due to good
potential current scenario.
The Company has also received order for bulk supply of coal/coke. The
supply of the same has already taken place.
Bricks Division
The Company has facilities to manufacture Refractories Bricks of various
sizes and qualities to cater the need of Steel Plants and Glass Plants.
The company's manufacturing facility is located in Kadi,
The company produces complete range of Refractories including:
• Fireclay in Medium and High heat duty in all Shapes and sizes with
Alumina contents from 30 to 45%
• High Grog and High Alumina Refractories with Alumina contents from 45%
to 99% for various applications in Steel plants, Cement kilns, Glass furnaces,
Sponge Iron, Aluminum, Non-Ferrous and Petrochemical Industries.
• Sillimanite and Andalusite bricks and blocks for Glass plants.
• Basic bricks including Magnesite, Magnesia Carbon, Magnesite Chrome,
Chrome Magnesite, Alumina Chrome, Alumina Magnesia Carbon, Direct bonded Mag
chrome etc
• Mortars for Power Plants and Chemical Industry
• Insulation bricks in conventional and special light weight bricks
• Various grades of mortars, ramming masses, gunning mixes and full
range of Castables
Within a short span of its commencement of manufacturing of Refractories
Bricks, The Division has long list of satisfied customers. The Revenue from
Operations of the division increased to Rs. 54.710 Millions in comparison to
Rs. 36.931 Millions in the previous year registering a robust increase of 48%.
During the year the Company has not exported bricks.
Wind Energy
Generation:
The company has been promoting Green Power through Wind Energy. They
totally have commissioned capacity of 2.365 MW. The company has successfully
registered the VER project with APX Registry. The company has also sold the
first VERs to First Climate,
Monsoon was not good but due to north east monsoon and some extended
monsoon would give some better generation. Wind Energy division had streamlined
the process and had made efforts to put the machines running so that they have
better Plant Load Factor (PLF).
They continue to face the problem of realization of funds from the
government. All the power generated is being sold to the Government and hence
they need to wait for the payment which is getting delayed. This is having
serious repercussions on the payments to be made for various term loans.
The Revenue from Operations of the division increased to Rs. 12.176
Millions in comparison to Rs. 6.462 Millions in the previous year registering a
robust increase of 88%.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry
Structure. Developments. Opportunities. Threats. Risks and Concerns and Future
Outlook:
The Company is a diversified organization mainly into Transportation,
Trading, Manufacturing, renting of immovable properties and generation of wind
Energy.
Transportation and
Logistics industry:
The Rs 4,000 billion Indian logistics industry, growing at an average
growth rate of 20% annually, is driven by robust economic growth, rising export
and import, government infrastructure investment and logistics outsourcing.
Logistics cost accounts for nearly 13% of GDP, higher than that in the
Industry characteristics
The Indian logistics sector is fragmented. Two-thirds of the total
trucks are owned and operated by transporters with fleets smaller than five
trucks. The result is intense competition, low freight rates and thin
profitability. The logistics cost in India is still high compared with
developed markets owing to a non-conducive policy environment, extensive
industry fragmentation and infrastructure inadequacy The sector employs
(directly and indirectly) about 40 million people. The sector is seeing
increased productivity through growing investments in GPS tracking, radio
frequency identification, online analytics and new supply chain tools. The
entry of global logistics players in
Road
transportation:
Railways has remained a dominant mode of transport in India over the
past few decades, but recently roadways have gained a significant share (more
than 60% - inland transportation), while railways has lost its market share due
to many reasons:
Industry overview
Over the last two decades, economic globalisation, trade liberalisation
and competition have enhanced transportation needs to the point that now
competent logistics management - activities relating to the procurement, transport,
transhipment and storage of goods - is not just an economic support, but also
recognised as an economy driver.
The Company has two different kind of contracts viz, "Logistic
Contracts and own trucks contract. Under the logistic contract, the Company
enters into contract with its client for providing logistic support to various
destinations by hiring trucks from the market and ensures transportation of
goods to the designated destinations of its client. Under the contract for
deployment of own trucks, the Company deploys its own trucks/ vehicles with its
client round the clock. The Company expects 15-20% growth in both contracts.
During the year, the Company continued to get / renewed transportation
Contracts from valued customers to cater needs of its valued clients. The
Revenue from Transport Operations decreased from Rs. 378.462 Millions in the
previous year to Rs 358.774 Millions in the current year registering a slight
decrease by 5.20 %. due to increased cost of oil and spare parts and other
overheads. The Company has already restructured its transport activities for
optimum utilization of its fleet of commercial vehicles and is hopeful to come
out with robust results in the days to come.
Trading Division:
Industry
Structure, Developments, Opportunities, Threats, Risks and Concerns and Future
Outlook:
The Automotive Industry in
BOSCH Division is acting as the Main Distributor for Auto Components
manufactured by "BOSCH Limited" for the Automotive Aftermarket and
supplies such spares to Authorised Service Centers of Bosch as well as to
retail outlets and neutral garages and workshops. BOSCH is the global leader in
Automotive Components and "BOSCH" brand products come as OE fitments
in all ranges of vehicles worldwide. With newer models of vehicles being
introduced in the market every year, the business has very good potential in
future. The Revenue from trading Operations of automotive parts of
"BOSCH" increased to Rs. 126.712 Millions in comparison to Rs.
101.106 Millions in the previous year registering a robust increase 25.32%.
Mahindra and Mahindra Division is acting as the Super Distributor for
Auto Components and Farm Equipment manufactured by "Mahindra and Mahindra
Limited," for the Automotive Aftermarket. With newer models of vehicles
being introduced in the market every year, the business has very good potential
in future. The Revenue from trading Operations of automotive parts of
"Mahindra and Mahindra Limited" increased to Rs. 90.888 Millions in
comparison to Rs. 64.315 Millions in the previous year registering a highly
increase of 41.32% mainly due to good potential in current scenario.
Notwithstanding aforesaid optimistic scenario, there are concerns of a
strong credit growth resulting in tightening of liquidity and increase in
interest rate, hardening 6f crude prices, increased imports on account of oil
and capital goods leading to current account deficit etc, which could act as
impediments to rapid economic growth of India and turn out to be a dampener in
short to medium term. Rise in interest rate is a negative for corporate
profitability and credit demand.
Refractories
Division
Industry
Structure, Developments, Opportunities, Threats, Risks and Concerns and Future
Outlook:
The world economy after experiencing an unprecedented contraction in the
second half of 2008 has slowly recovered in 2009- 2010.The same holds for
steel/glass Industry where the major sale of Refractories is made. During the
source of recovery there is all likely hood of a substantial shift in regional
out of Steel and Glass Industry. Till such time, these signal becomes clearer,
the Company will trade on cautious path.
Within a short span of its commencement of manufacturing of Refractory
Bricks, The Division has long list of satisfied customers. The Revenue from
Operations of the division increased to Rs. 54.710 Millions in comparison to
Rs. 36.931 Millions in the previous year registering a robust increase 48%.
During the year the Company has not exported bricks.
Wind Energy
Generation
The Wind power programme in
Wind in
A notable feature of the Indian programme has been the interest among
private investors/developers in setting up of commercial wind power projects.
The gross potential is 48,561 MW (source C-wet) and a total of about 11,807.00
MW of commercial projects have been established until March 31, 2010.
The company has been promoting Green Power through Wind Energy. They
totally have commissioned capacity of 2.365 MW. The company has successfully registered
the VER project with APX Registry. The company has also sold the first VERs to
First Climate,
Monsoon was not good but due to the north east monsoon and some extended
monsoon would give some better generation. Wind Energy division had streamlined
the process and had made efforts to put the machines running so that they have
better Plant Load Factor (PLF).
They continue to face the problem of realization of funds from the
government. All the power generated is being sold to the Government and hence
they need to wait for the payment which is getting delayed. This is having
serious repercussions on the payments to be made for various term loans.
The Revenue from Operations of the division increased to Rs. 12.176
Millions in comparison to Rs. 6.462 Millions in the previous year registering a
robust increase of 88%.
Discussion on
Financial performance
Transportation
The Revenue from Transport Operations decreased from Rs. 378.462
Millions in the previous year to Rs 358.774 Millions in the current year
registering a slight decrease by 5.20 %. due to increased cost of oil and spare
parts and other overheads. The Company has already restructured its transport
activities for optimum utilization of its fleet of commercial vehicles and is
hopeful to come out with robust results in the days to come.
Trading
The Revenue from trading Operations of automotive parts of
"BOSCH" increased to Rs. 126.712 Millions in comparison to Rs.
101.106 Millions in the previous year registering a robust increase 25.32%.
The Revenue from trading Operations of automotive parts of
"Mahindra and Mahindra Limited" increased to Rs. 90.888 Millions in comparison to Rs. 64.315 Millions in the
previous year registering a highly increase of 41.32% mainly due to good
potential in current scenario.
Bricks Division
The Revenue from Operations of the division increased to Rs. 54.710 Millions
in comparison to Rs. 36.931 Millions in the previous year registering a robust
increase 48%. During the year the Company has not exported bricks.
Wind Energy
Generation:
The Revenue from Operations of the division increased to Rs. 12.176
Millions in comparison to Rs. 6.462 Millions
in the previous year registering a robust increase of 88%.
Fixed Assets:
·
Software
·
Land
·
Building
·
Plant and Machinery and
Equipments
·
Furniture and Fixture
·
Vehicles
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.46.18 |
|
|
1 |
Rs.73.65 |
|
Euro |
1 |
Rs.64.95 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
35 |
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.