MIRA
INFORM REPORT
|
Report Date : |
12.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
N R AGARWAL INDUSTRIES LIMITED |
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Registered Office : |
415-418, Janki Centre, 4th Floor, 29 Shah Industrial
Estate, Andheri (West), Mumbai – 400058, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
08.12.1993 |
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Com. Reg. No.: |
133365 |
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Capital
Investment / Paid-up Capital : |
Rs.170.191
Millions |
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CIN No.: [Company
Identification No.] |
L22210MH1993PLC133365 |
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Legal Form : |
A Public Limited Liability Company. A Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business : |
Manufacture of Paper Boards and Newsprint. |
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No. of Employees
: |
250 Approximately |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit
Limit : |
USD 3752870 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well 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. Subject 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) |
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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 |
INFORMATION DECLINED BY
Management Non Co-operative (Name not divulged)
LOCATIONS
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Registered Office : |
415-418, Janki Centre, 4th Floor, 29 Shah Industrial Estate,
Andheri (West), Mumbai – 400058, Maharashtra, India |
|
Tel. No.: |
91-22-26730667/ 26730570/ 26730668/ 26730913/ 14/ 17/ 2639215/ 56/ 57/
26347316 |
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Fax No.: |
91-22-26730667/ 26730227/ 26320686 |
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E-Mail : |
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Website : |
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Area : |
2000 sq. ft. |
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Location : |
Owned |
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Factory 1: |
Plot No.169/1 GIDC, Phase – II, Vapi Gujarat – 396195, |
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Tel. No.: |
91-260-2401634 |
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Fax No.: |
91-260-2431706 |
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Email : |
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Factory 2: |
Plot No. 1, Phase 1, GIDC, Vapi, District Valsad – 396
195, |
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Tel. No.: |
91-260-2431942 |
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Fax No.: |
91-260-2426979/ 2428320 |
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Email : |
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Factory 4: |
Plot No. 901.3rd Phase, GIDC, Vapi. Dist.: Valsad
(Gujarat) - 396 195, |
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Tel No.: |
91-260 - 240 0052 / 242 1124 |
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Fax No.: |
91-260 - 240 1836 |
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Email : |
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Factory 4: |
Plot No. 901/P, 3rd Phase, GIDC, Vapi - 396 195, |
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Tel No.: |
91-260 - 240 0052 / 242 1124 |
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Fax No.: |
91-260 - 240 1836 |
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Email : |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. N R Agarwal |
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Designation : |
Executive Chairman |
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Name : |
Mr. R N Agarwal |
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Designation : |
Managing Director |
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Name : |
Mr. S N Chaturvedi |
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Designation : |
Director |
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Name : |
Mr. Raunak Agarwal |
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Designation : |
Director |
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Name : |
Mr. P Kumar |
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Designation : |
Director |
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Name : |
Mr. C R Radhakrishnan |
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Designation : |
Director |
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Name : |
Mr. Raunak Agarwal (w.e.f. 01.05.2008) |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Ms. Priyanka Agrawal |
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Designation : |
Company Secretary and Compliance Officer |
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Name : |
Mr. Ramesh Iyer |
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Designation : |
Chief Executive Officer |
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Name : |
Ms. Hemali Sheth |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Category of
Shareholder |
Total No. of
Shares |
% of total No. of Shares |
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(A) Shareholding
of Promoter and Promoter Group |
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12,460,923 |
73.22 |
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12,460,923 |
73.22 |
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Total
shareholding of Promoter and Promoter Group (A) |
12,460,923 |
73.22 |
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(B) Public
Shareholding |
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2,000 |
0.01 |
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500 |
- |
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4,700 |
0.03 |
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7,200 |
0.04 |
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1,413,758 |
8.31 |
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2,191,152 |
12.87 |
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819,256 |
4.81 |
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126,811 |
0.75 |
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120,782 |
0.71 |
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6,029 |
0.04 |
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4,550,977 |
26.74 |
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Total Public
shareholding (B) |
4,558,177 |
26.78 |
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Total (A)+(B) |
17,019,100 |
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) |
17,019,100 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 million
BUSINESS DETAILS
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Line of Business : |
Manufacture of Paper Boards and Newsprint. |
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Products : |
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Exports : |
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Countries : |
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Imports : |
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Products : |
Waste Paper |
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Countries : |
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PRODUCTION STATUS AS ON 31.03.2011
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Particulars |
Unit |
Installed
Capacity |
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Duplex Boards (Annual in M.T.) |
TPA |
112800 (3
Shifts) |
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Newsprint (Annual in M.T.) |
TPA |
36000 (3 Shifts) |
GENERAL INFORMATION
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No. of Employees : |
250 Approximately |
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Bankers : |
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Facilities : |
Notes: 1) Term Loan from
IDBI Bank is secured by a first pari passu charge with Bank of Baroda for its
Term Loan on movable properties, Plant & Machinery and immovable
properties situated at Unit I, II, III and IV at Vapi and Unit V at Sarigam,
Gujarat excluding free hold land admeasuring 37.61 Acres located at Sarigam,
Gujarat. The Loan is further secured by personal guarantee of Shri. R N
Agarwal. 2) The Bank of
India Office Loan is secured by equitable mortgage on exclusive basis on
office premises situated at 1101, Fortune Terraces, 11th Floor, Mahashree
Compound, New Link Road, Andheri (West), Mumbai 400 053. The Loan is further
secured by personal guarantee of Shri. R N Agarwal. 3) Kotak
Mahindra Bank Limited, Term Loan is secured by exclusive charge on Unit 415-418,
situated at Janki Centre, 4th Floor, 29, Shah Industrial Estate, Off. Veera
Desai Road, Andheri (West), Mumbai – 400 053. The Loan is further secured by
personal guarantee of Shri. R N Agarwal. 4) Bank of
Baroda Unit V Project Term Loan (including Buyers Credit facility) is secured
by a first pari passu charge with IDBI Bank on movable properties, Plant
& Machinery and immovable properties situated at Unit I, II, III and IV
at Vapi and Unit V at Sarigam, Gujarat excluding free hold land admeasuring
37.61 Acres located at Sarigam, Gujarat. The Loan is further secured by
personal guarantee of Shri. R N Agarwal. 5) The Corporate
Loan of The Saraswat Co-operative Bank Ltd, is secured by a first pari passu
charge with Bank of Baroda and IDBI Bank on movable and immovable properties,
Plant & Machinery situated at Unit I, Vapi. It is further secured by
exclusive charge by way of equitable mortgage of Directorsresidential
bungalow at Lokhandwala, Andheri (W), Mumbai 53, and also an exclusive charge
by way of legal mortgage of non agricultural land admeasuring 37.61 Acres of
Sarigam, Gujarat. The Loan is further secured by personal guarantee of Shri.
R N Agarwal. 6) The working
capital loans from Banks are secured by hypothecation of present and future
stock of raw materials, steam coal, goods-in-process, finished goods and book
debts etc. ranking pari passu inter-se and second charge on Companies movable
and immovable fixed assets and it is further secured by personal guarantee of
Shri. R N Agarwal.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Chaturvedi and Partners Chartered Accountant |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS On 31.03.2011
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
22500000 |
Equity Shares |
Rs.10/- each |
Rs.225.000 Millions |
|
2500000 |
Preference Shares |
Rs.10/- each |
Rs.25.000 Millions |
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Total |
|
Rs.250.000
Millions |
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Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
17019100 |
Equity Shares |
Rs.10/- each |
Rs.170.191
Millions |
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|
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Share Warrants (Company has
alloted 1250000 zero percent convertible warrants on a preferential basis entitlling
them to apply for and to obtain one equity share at a price of Rs.46.80 per
share. Company has received 25% of amount against each warrant) |
|
Rs. 14.625
millions |
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 |
|
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|
|
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1] Share Capital |
170.191 |
170.191 |
170.191 |
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2] Share Warrants |
14.625 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
753.402 |
510.161 |
330.121 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
938.218 |
680.352 |
500.312 |
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LOAN FUNDS |
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1] Secured Loans |
1743.860 |
882.284 |
733.579 |
|
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2] Unsecured Loans |
69.503 |
45.778 |
98.732 |
|
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TOTAL BORROWING |
1813.363 |
928.062 |
832.311 |
|
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DEFERRED TAX LIABILITIES |
161.368 |
164.306 |
164.306 |
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TOTAL |
2912.949 |
1772.720 |
1496.929 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1140.074 |
1126.593 |
1136.043 |
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Capital work-in-progress |
1661.541 |
534.749 |
32.475 |
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INVESTMENT |
1.873 |
1.848 |
1.848 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
312.584
|
262.471
|
257.781
|
|
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Sundry Debtors |
464.230
|
410.214
|
511.463
|
|
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Cash & Bank Balances |
115.602
|
89.874
|
25.287
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
190.197
|
233.936
|
148.469
|
|
Total
Current Assets |
1082.613
|
996.495
|
943.000
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
819.954
|
737.313
|
518.066
|
|
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Other Current Liabilities |
102.114
|
102.596
|
60.947
|
|
|
Provisions |
51.084
|
47.056
|
37.424
|
|
Total
Current Liabilities |
973.152
|
886.965
|
616.437
|
|
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Net Current Assets |
109.461
|
109.530
|
326.563
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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TOTAL |
2912.949 |
1772.720 |
1496.929 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
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SALES |
|
|
|
|
|
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Income |
4832.850 |
3885.522 |
3867.076 |
|
|
|
Sales-Traded Goods |
0.000 |
8.619 |
3.845 |
|
|
|
Other Income |
30.953 |
30.261 |
30.074 |
|
|
|
TOTAL (A) |
4863.803 |
3924.402 |
3900.995 |
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|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
2813.470 |
2208.617 |
2244.329 |
|
|
|
Purchases of Traded Goods |
0.000 |
0.000 |
3.821 |
|
|
|
Manufacturing Expenses |
1543.393 |
1343.512 |
1390.066 |
|
|
|
Increased/(Decreased) In stock |
(11.686) |
0.418 |
(12.202) |
|
|
|
TOTAL (B) |
4345.177 |
3552.547 |
3626.014 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
518.626 |
371.855 |
274.981 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
73.243 |
86.139 |
100.805 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
445.383 |
285.716 |
174.176 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
84.816 |
80.853 |
80.969 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
ITEMS |
0.000 |
76.180 |
25.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
360.567 |
281.043 |
118.207 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
83.080 |
71.499 |
29.151 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
277.487 |
209.544 |
89.056 |
|
|
|
|
|
|
|
|
|
|
EXCESS PROVISION
WRITTEN BACK |
0.000 |
6337 |
0.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
PREVIOUS YEAR
TAXATION ADJUSTMENT |
0.000 |
0.000 |
1.329 |
|
|
|
|
|
|
|
|
|
Less/ Add |
PRIOR YEAR
ADJUSTMENTS |
1.475 |
0.000 |
(1.749) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
450.108 |
285.867 |
219.642 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed final dividend - equity shares |
30.634 |
30.364 |
17.019 |
|
|
|
Tax on proposed equity dividend |
5.087 |
5.206 |
2.892 |
|
|
|
Transfer to General Reserve |
15.800 |
15.800 |
2.500 |
|
|
BALANCE CARRIED
TO THE B/S |
677.549 |
450.108 |
285.867 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
152.922 |
43.885 |
122.683 |
|
|
TOTAL EARNINGS |
152.922 |
43.885 |
122.683 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
578.726 |
695.637 |
368.702 |
|
|
|
Stores & Spares |
8.825 |
12.508 |
16.924 |
|
|
|
Capital Goods |
130.698 |
117.291 |
0.000 |
|
|
TOTAL IMPORTS |
718.249 |
825.436 |
385.626 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
16.39 |
12.68 |
5.21 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
|
|
1st
Quarter |
|
Net Sales |
1225.900 |
|
Total Expenditure |
1114.250 |
|
PBIDT (Excl OI) |
111.650 |
|
Other Income |
0.960 |
|
Operating Profit |
112.610 |
|
Interest |
23.170 |
|
Exceptional Items |
0.000 |
|
PBDT |
89.440 |
|
Depreciation |
22.000 |
|
Profit Before Tax |
67.440 |
|
Tax |
14.810 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
52.630 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
52.630 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.70
|
5.53
|
2.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.46
|
7.22
|
3.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.22
|
13.23
|
0.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.38
|
0.41
|
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.14
|
2.67
|
2.90 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.11
|
1.12
|
1.53 |
LOCAL AGENCY FURTHER INFORMATION
NOTE:
They have purchases – 93 acres of land in sarigam in
They have purchased last year for Rs.100.000 Millions
COMPANY
PERFORMANCE
During the
financial year ended March 31, 2011 the Company recorded production of 131106
MT of Duplex Board, 28476 MT of Newsprint and 3402 MT of Kraft Paper as against
126059 MT of Duplex Board and 31972 MT of Newsprint in previous financial year.
During the year under review, the Company has commenced production of Kraft
Paper in its Unit No.II. The turnover for the financial year under review was
Rs. 4832.800 millions as against Rs. 3885.500 millions for the previous
financial year. As compared to the previous year, there has been a substantial
increase in the Net Profit, mainly due to improved sales realization. During
the year, the Company exported Duplex Board and realized Rs.152.900 millions,
as compared to Rs.43.900 millions, in the previous year.
MANAGEMENT DISCUSSION & ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Paper Industry
in India is witnessing significant growth and capacity expansions to meet the
growing demand for paper consumption as a result of growth in education sector
and increasing literacy rate. Increased economic activity is providing the
players an opportunity for growth and expansion. Over the centuries, paper has
been one of the “unsung” drivers of world development, and remains an essential
ingredient of homes, factories, offices and schools. After liberalization in
the late nineties, the paper industry in India became a government priority
sector for foreign collaboration, with flexi loans and several fiscal
incentives put in place. The country is almost self-sufficient in manufacture
of most varieties of paper but performance of the industry has been constrained
due to high cost
of production
caused by inadequate availability and high cost of raw materials, power cost
and concentration of mills in one particular area. Several policy measures have
been initiated in recent years to remove these bottlenecks. The Indian Paper
Industry is among the top 15 global players today, with an output of more than
6 millions tones annually with an estimated turnover of Rs.150,000 Millions.
(Approx. USD 3400 million). The Indian Economy is progressing well and
targeting 8%+ growth. The economic reforms coupled with the liberalized
Government Policies, India today offers excellent business opportunity for
investments. One of the first FDI Projects may come through the proposed
Finnish Proposal to set up a 400000 TPA capacity plant with an investment of US
$ 240 million. There is a vast range of opportunities available, some more
specialized than others. Overall industry prospects are good. Many companies
have added capacities, most of which became operational in the last calendar
year. Lot of capacity addition has been done, both in the organized and
unorganized sector. There is an overhang of extra supply that will get absorbed
in the next year. India is self-sufficient to manufacture most varieties of
paper and paperboards. Newsprint and Publication paper account for 2 million
tons of which 1.2 million tons is manufactured in India and remaining 0.8
million tons is imported. India also has surplus to export some grades. It
exports A4 copiers, wood-free (mostly from bamboo and agro waste by several
small mills), MG varieties (from small agro based mills), coated duplex (mostly
recycled fibre) and large quantity of converted products like stationery items,
calendars, books, magazines, children’s play books and comics to Middle East,
South Eastern Countries, Eastern Europe and USA and the prime grades of paper
are imported from USA, Europe, Dubai and Singapore like label stock, wet
strength papers, tea bag tissue, soft tissue, filter paper, insulation kraft,
extensible kraft, decorative laminates, overlay tissue, thermal papers, digital
papers, coated papers/boards and some specialties. Stock lots of all grades
totaling about 200,000 tonnes arrive every year mostly from USA and Europe.
These are imported by traders in major metro cities of Mumbai, Chennai, Cochin,
Bengaluru and Delhi. In the long-term, “Asia will continue to be a major growth
driver in the global paper industry. The Indian paper market is growing at 3x the global average and 50% more than
Asian average. Demand is over encouraging and good traction is seen in
the high value added segment.”
OPPORTUNITIES AND
OUTLOOK
The new millennium
is going to be the millennium of the knowledge, so demand for paper would go on
increasing in times to come. In view of paper industry’s strategic role for the
society and also for the overall industrial growth it is necessary that the
paper industry performs well. The paper industry is a priority sector for
foreign collaboration and foreign equity participation upto 100%, receives
automatic approval by Reserve Bank of India. Several fiscal incentives have
also been provided to the paper industry, particularly to those mills which are
based on non-conventional raw material. Increased capacity is expected to
result in slightly reduced capacity utilisation over the short to medium term.
Moreover, the new capacity additions would increase the competition among
domestic paper manufacturers and prevent increase in paper prices in the medium-term.
Essentially, there is a huge potential for automation and system integrators to
work collaboratively with India’s paper companies and
help them acquire
the competitive edge. This means paper mills in India have tremendous
opportunity to improve their profit margin by increasing their investments in
automation systems and enterprise solutions and integrating them to achieve
collaborative production management. With the country’s economy growing
robustly, the paper
consumption in
India is bound to expand and the existing gap is a good indicator of the
industry’s growth potential. Paper Industry in India is riding on a strong
demand and on an expanding mood to meet the projected demand of 13 million tons
by 2020. A large number of expansion programme and expansion of capacities with
an outlay of Rs.100000 millions have been announced covering the various
sectors like paper, paperboard, newsprint etc.
The operating
capacity of the industry stands at 9.3 million tons. As per the industry
estimates, overall paper consumption has now touched 8.86 million tons and per
capita consumption is pegged at 9.18 kg. The Indian Paper industry is currently
in the midst of a transformation with major Capital Expenditure (Capex)
underway and improving operating efficiencies is the major concern of all
players. All players are committing a large amount of investment, focusing on:-
• Improving the
operational efficiencies through rightsizing pulping capacities
• Capacity
Expansions
• Integration into
Captive Power
• Adherence to
pollution norms by chemical recovery and recycled usage
• In India demand
is driven by rapid growth of both incomes and population
• India will
emerge as a global hub for high-quality printing at a competitive cost
TRADE REFERENCE:
- Bal Krishna Paper Industrial Limited, Mumbai
- TTC Badrachalam Limited, South
FIXED ASSETS:
- Land
- Plant and Machinery
- Furniture and Fixture
- Motor Cars
- Other – Building
- Computers
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 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.46.38 |
|
|
1 |
Rs.74.01 |
|
Euro |
1 |
Rs.64.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
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 |
|
46 |
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.