MIRA INFORM REPORT

 

 

Report Date :

02.04.2012

 

IDENTIFICATION DETAILS

 

Name :

WARTSILA INDIA LIMITED

 

 

Registered Office :

Kesar Solitaire, 21st Floor, Plot No.5, Sector 19, Palm Beach Road, Sanpada, Navi Mumbai – 400705, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

25.04.1986

 

 

Com. Reg. No.:

11-062170

 

 

Capital Investment / Paid-up Capital :

Rs.118.997 Millions

 

 

CIN No.:

[Company Identification No.]

U99999MH1986PLC062170

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMW02506A

 

 

PAN No.:

[Permanent Account No.]

AAACW0345D

 

 

Legal Form :

A Closely Held Public Limited Liability Company. 

 

 

Line of Business :

Manufacturer of Power Point Equipments, Power Plants and Turnkey Installation, Generator

 

 

No. of Employees :

1111 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (68)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

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

 

 

Maximum Credit Limit :

USD 12000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track.

 

The company is a subsidiary of wartsila OY, AB of Finland.

 

Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for business dealings at usual trade terms and conditions.

 

It can be regarded as a promising business partners in medium to long run.

 

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

INFORMATION DECLINED BY

 

Management Non Co-operative

 

Tel No.: 91-22-27575361

 

 

LOCATIONS

 

Registered Office/ (Power Plants/ Ship Power/ services, WSM and Corporate Offices) :

Kesar Solitaire, 21st Floor, Plot No.5, Sector 19, Palm Beach Road, Sanpada, Navi Mumbai – 400705, Maharashtra, India

 

Tel. No.:

91-22-27818300/ 8550

Fax No.:

Not Available

E-Mail :

wincorporate@wartsila.com

pradeep.maillick@wdin.wiprobt.ems.vsnl.net.in

shampa.ghoshray@warsila.com

candra.nahata@wartsila.com

Website :

http://www.wartsila.com

 

 

Chennai – Sales and Services Office :

Shreyas Vriddhi, 132, Velachery Main Road, Guindy, Chennai – 600 032, Tamilnadu, India.

Tel. No.:

91-44-22301080

 

 

EOU, Manufacturing, WLSA, Marine Workshop :

Gate No.1, Opposite Govt Rest House, Mumbai – Pune Road, Shilphata, Khopoli- 410203, District Raigad, India

Tel. No.:

91-2192-264389/ 264390/ 269712

Fax No.:

91-2192-263314

 

 

Spare Parts Stores :

Gate No.2, Opposite Govt Rest House, Mumbai – Pune Road, Shilphata, Khopoli- 410203 District Raigad, India

Tel. No.:

91-2192-262896 / 262897

Fax No.:

91-2192-262692

 

 

Kolkata - Services Office :

Camac Tower, 3rd Floor, Camac Street, Kolkata -700 016, West Bengal, India India

Tel. No.:

91-33-22172320

Fax No.:

91-33-22497535

 

 

Mangalore - Services Office :

B-Wing, 6th Floor, Rama Bhavan Complex, Kodiabail, Mangalore – 575003, India

Tel. No.:

91-824-2441722

Fax No.:

91-824-2443556

 

 

Noida - Power Plants and Services Office :

Plot A-98, Sector 5, Noida, District Gautam Budh Nagar-  201301, Uttar Pradesh, India

Tel. No.:

91-120-419 2000

Fax No.:

91-120-4192199

 

 

Paradip (Orissa) - Marine Workshop :

Paradip Port Trust, PO- Paradip Port, District Jagatsinghpur - 754 142, Orissa,
India

Tel. No.:

91-06722- 222047/222125

Fax No.:

91-06722-222025

 

 

Secunderabad - Services Office :

Flat # 301, Oxford Plaza, S. D. Road, Secunderabad- 500003, India

Tel No.:

91-40-27715383

Fax No.:

91-40-27715377

 

 

Vizag - Marine Workshop :

Plot No 3, Auto Industrial Nagar, Village – Vadlapudi, Mandal Gajuwaka, Industrial Development Area, D, Block, Visakhapatnam – 530012, India

Tel No.:

91-891-6457771

Fax No.:

91-891-2700210

 

 

DIRECTORS

 

(AS ON 13.06.2011)

 

Name :

Mr. Christoph Carl Eric Vitzthum

Designation :

Director

Address :

Johanneksenrinne, 1 B 55, F I, 00120, Helsinki, Finland-00120

Date of Birth/Age :

05.07.1969

Date of Appointment :

26.02.2005

DIN No :

00170518

 

 

Name :

Mr. Vesa Tapio Riihimaki

Designation :

Director

Address :

Liito-Oravankatu, 17, Vaasa, Finland-65350

Date of Birth/Age :

21.03.1966

Date of Appointment :

29.06.2010

DIN No :

03137446

 

 

Name :

Mr. Aaron Gordon Bresnahan

Designation :

Director

Address :

949, Jenkins Drive, Virginia Beach, Virginia-23464, USA

Date of Birth/Age :

09.08.1969

Date of Appointment :

29.06.2010

DIN No :

03144818

 

 

Name :

Mr. Rakesh Jagatpalsingh Sarin

Designation :

Managing Director

Address :

Apartment No.4, 18th Floor, The Pinnacle, DLF City Phase-V, Gurgaon-122001, Haryana, India

Date of Birth/Age :

24.07.1955

Date of Appointment :

14.02.2008

DIN No :

02082150

 

 

Name :

Mr. Lars Torsten Hellberg

Designation :

Director

Address :

Ekas 180, Kode-44298, Switzerland

Date of Birth/Age :

18.03.1959

Date of Appointment :

18.04.2008

DIN No :

02149091

 

 

KEY EXECUTIVES

 

Name :

Mr. Shampa Ghosh Roy

Designation :

Company Secretary

Address :

Flat A-402, Janimal Towers, Sector-17, Vashi, Navi Mumbai-400705, Maharashtra, India

Date of Birth/Age :

18.06.1976

Date of Appointment :

10.03.2008

PAN No :

AGLPR9574R

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 13.06.2011)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Wartsila Corporation, Finland

 

4656101

Wartsila Technology, Finland

 

3637300

Wartsila Corporation, Finland

 

2500000

Wartsila Technology, India

 

1023448

Wartsila Technology, Helsiothers

 

62337

Wartsila Technology, Thane, India

 

20040

CKT Industries SA, France

 

1

Wartsila Network Holc, Hanzelaan

 

1

Wartsila Finland OY, Finland, Tarhaajan

 

1

Wartsila Dutch Holding, Hanzelaan 

 

1

Wartsila Development

 

1

 

 

 

Total

 

11899231

 

 

 

(AS ON 30.06.2011)

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

100.00

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of power Point Equipments, Power Plants and Turnkey Installation, Generator

 

 

Products :

Product Description

 

Item Code No:

Diesel Generating Set

85021304

 

 

GENERAL INFORMATION

 

No. of Employees :

1111 (Approximately)

 

 

Bankers :

·         Bank of Baroda,

Corporate Financial Services, fort Branch, 10/12, Mumbai Samachar Marg, Fort, Mumbai-400023, Maharashtra, India

 

 

 

Banking Relations :

--

 

 

Financial Institution :

·         GE Capital Services Limited

Aifacs Building, 1, Rafi Marg, Mumbai – 110001, Maharashtra, India

 

 

Auditors :

 

Name :

BSR and Associates

Chartered Accountants

Address :

1st Floor, Lodha Excelus, Apollo Mills Compound NM Joshi Marg, Mahalakshmi, Mumbai – 400011, Maharashtra, India

 

 

Holding Company :

·         Wartsila Corporation, Finland

 

 

Fellow Subsidiary, Holding more than 20% of the Company’s Shares

·         Wartsila Technology OY AB, Finland

 

 

Fellow Subsidiary :

·         Wartsila Bangladesh Limited

·         Wartsila Chile Limited

·         Wartsila China Limited

·         Wartsila Denmark A/S

·         PT. Wartsila Indonesia

·         Wartsila - CME Zhenjiang Propeller Company Limited

·         Wartsila Argentina S.A.

·         Wartsila Enpa Dis Tic AS

·         Wartsila Finland Oy

·         Wartsila France S. a s. Mulhouse

·         Wartsila Greece S.A

·         Wartsila Gulf FZE

·         Wartsila Italia S.p.A.

·         Wartslla lapan Limited

·         Wartsila Korea Limited

·         Wartsila Australia Pty Limited

·         Wartsila Lanka (Pvt) Limited

·         Wartsila Nederland B.V.

·         Wartsila North America Inc.

·         Wartsila Norway AS

·         Wartsila Philippines Inc.

·         Wartsila Power Contracting Company Limited

·         Wartsila Ships Repairing and Maintenance LLC

·         Wartsila Shanghai Services Company Limited

·         Wartsila Singapore Pte. Limited

·         Wartsila Do Brazil Limited

·         Wartsila Eastern Africa Limited

·         Wartsila Sweden AB

·         Wartsila Switzerland Limited

·         Wartsila UK Limited

·         Wartsila Pakistan (Private) Limited

·         Wartsila Vostok, LLC

·         Wartsila Panama Services S.A.

·         Wartsila Propulsion (Wuxi) Company Limited

 

 

Joint Venture Company

·         Coastal Wartsila Petroleum Private limited, India

 

 

CAPITAL STRUCTURE

 

(AS ON 31.12.2010)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15000000

Equity Shares

Rs.10/- each

Rs.150.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

11899231

Equity Shares

Rs.10/- each

Rs.118.992 Millions

 

 

 

 

 

 

 

(AS ON 31.12.2010)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15000000

Equity Shares

Rs.10/- each

Rs.150.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

11899662

Equity Shares

Rs.10/- each

Rs.118.997 Millions

 

 

 

 

 

NOTE:

 

Of the above shares, 7,156,101 (Previous year 7,156,101) equity shares of Rs.10/– each are held by the holding company, Wärtsila Corporation, Finland and 4,743,130 (Previous year 4,743,130) equity shares of Rs.10/– each are held by Wärtsilä Technology Oy AB, Finland, a subsidiary of Wärtsilä Corporation.

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2010

31.12.2009

31.12.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

118.997

120.340

120.340

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2924.089

2940.914

2494.852

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

3043.086

3061.254

2615.192

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

84.250

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

84.250

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

3043.086

3061.254

2699.442

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

436.111

417.153

345.681

Capital work-in-progress

5.570

18.342

122.160

 

 

 

 

INVESTMENT

1528.124

1455.087

890.734

DEFERREX TAX ASSETS

79.777

43.154

1.808

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

1550.845
560.358
493.245

 

Sundry Debtors

1272.819
1100.024
968.481

 

Cash & Bank Balances

418.162
322.196
378.184

 

Other Current Assets

67.181
48.879
62.289

 

Loans & Advances

515.918
332.112
601.903

Total Current Assets

3824.925
2363.569

2504.102

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

1967.371
693.914

703.832

 

Other Current Liabilities

289.072
255.099
264.768

 

Provisions

574.978
287.038
196.443

Total Current Liabilities

2831.421
1236.051
1165.043

Net Current Assets

993.504
1127.518
1339.059

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3043.086

3061.254

2699.442

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.12.2010

31.12.2009

31.12.2008

 

SALES

 

 

 

 

 

Income

5009.175

4391.581

3518.270

 

 

Other Income

93.179

174.182

104.870

 

 

TOTAL                                     (A)

5102.354

4565.763

3623.140

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of sales, construction and services

2904.684

2321.658

1827.593

 

 

Operating and administration expenses

1551.999

1544.745

1272.375

 

 

TOTAL                                     (B)

4456.683

3866.403

3099.968

 

 

 

 

 

Less

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

645.671

699.360

523.172

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.543

0.603

3.327

 

 

 

 

 

 

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

645.128

698.757

519.845

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

45.535

44.271

74.745

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

599.593

654.486

445.100

 

 

 

 

 

Less

TAX                                                                  (H)

187.484

(166.188)

(114.444)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

412.109

488.298

330.656

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1865.296

1493.958

1262.985

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

41.211

48.830

33.066

 

 

Maintenance Reserve

30.898

25.893

24.379

 

 

Dividend

297.492

36.102

36.102

 

 

Tax on Dividend

49.410

6.135

6.136

 

 

Dividend Distribution Tax

11.908

--

--

 

BALANCE CARRIED TO THE B/S

1846.486

1865.296

1493.958

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

705.642

560.205

639.089

 

 

Services rendered

248.652

371.866

323.478

 

 

Commission Earnings

320.049

357.278

318.441

 

 

Other Earnings

0.000

0.000

12.454

 

TOTAL EARNINGS

1274.343

1289.349

1293.462

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Components

1384.161

285.509

240.350

 

 

Stores & Spares

858.123

732.315

379.877

 

 

Capital Goods

0.032

51.912

29.663

 

TOTAL IMPORTS

2242.316

1069.736

649.890

 

 

 

 

 

 

Earnings Per Share (Rs.)

34.25

40.58

27.48

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2010

31.12.2009

31.12.2008

PAT / Total Income

(%)

8.08
10.69

9.13

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

11.97
14.90

12.65

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

14.07
23.54

15.62

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.20
0.21

0.17

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.93
0.40

0.48

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.35
1.91

2.15

 


 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.12.2010

 

31.12.2009

31.12.2008

 

(Rs. In Millions)

Sundry Creditors

 

 

 

 - Micro and Small Enterprises

2.822

0.000

0.477

 - Other

1964.549

693.914

703.355

 

 

 

 

Total

 

1967.371

693.914

703.832

 

 

OPERATIONS

 

The Company’s turnover during the year 2010 increased to MINR 5102 being 11% more than the previous year while the profit after tax decreased by 18% to MINR 412. The decrease in profit after tax is primarily due to the exceptional provision.

 

The delivery of power plants during the year 2010 aggregated to 169 MW (54 MW last year). During the same period, capacity commissioned totalled 47 MW (32 MW last year). The cumulative deliveries of power plants to customers up to 31st December, 2010 aggregated 3404 MW, of which 3248 MW has been commissioned and operating while 156 MW is under installation and likely to be commissioned during 2011. In addition, as on 31st December, 2010, orders totaling 174 MW (60 MW last year) were on hand for delivery and execution during the year 2011. The order intake during the year 2010 was 284 MW as compared to 75 MW in the year 2009.

 

During the year 2010, the Services business was able to tide over the constraints in its organic business, especially in the marine segment. Ship repairs and propulsion were the complementing segments. Competency along with key customer relationship management was the key driver in achieving good orders in Relocation of Power Plants. The Company has established itself in automation activities and expects to be a key player in the defence sector besides dry-docking and industrial field.

 

Operations Management consolidated its focus in STG resulting in better enquiries and a brand name as Operations Contractor. As on 31st December, 2010 the Company is operating 49 sites totalling 1016 MW of which BTG 333.9 MW and WTG 59.4 MW. It has 5 New sites totalling 112 MW under mobilisation.

 

The year 2010 witnessed the revival of the shipping industry. The low order placement during the last two years worldwide resulted in balancing the demand and supply to some extent. Long term investment planning undertaken by ship owners during 2010 will result in higher orders in the current year. The industry was also affected by newer norms set by International Maritime Organization with Tier II emission norms coming into force for al the ships for which the keel is being laid in the current year.

 

The Auxiliary business has gained tremendous momentum during the last two quarters of 2010. The CPP manufacturing shop has been converted into Auxiliary Manufacturing unit to cater to the increased demand of auxiliaries while manufacturing of nozzles has been discontinued during the year due low order volume.

 

 

 

CONTINGENT LIABILITIES

 

Particulars

31.12.2010

31.12.2009

 

 

(Rs. In Millions)

 

 

 

Guarantees issued by banks to third parties on Company's behalf [Secured by hypothecation of tangible movable assets (both present and future) and a second charge on all immovable properties (both present and future)]

619.108

444.230

Corporate Guarantee issued to third Parties

--

4.948

Letter of Credit

4.900

--

Sales Tax demands – matters under appeal

82.536

82.536

Income tax Demands – Matters under appeal

24.771

12.441

Customer Duty Demands

34.280

27.280

Service Tax

380.015

414.195

Excise Duty

1.274

3.674

Other Demands

4.499

34.411

 

 

 

 

 

 

FORM 8

 

Corporate identity number of the company

U99999MH1986PLC062170

Name of the company

WARTSILA INDIA LIMITED

Address of the registered office or of the principal place of  business in India of the company

48 Neco Chambers, Sector 11, CBD Belapur, Navi Mumbai- 400614, Maharashtra, India

shampa.ghoshray@wartsila.com

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

90352159

Type of charge

Book debts

Movable property (not being pledge)

Particular of charge holder

Bank of Baroda,

Corporate Financial Services, fort Branch, 10/12, Mumbai Samachar Marg, Fort, Mumbai-400023, Maharashtra, India

 

Nature of instrument creating charge

3rd Jt Supplemental Deed of Hypothecation dated 21.05.2010 was executed to secure reduced limit of Rs.1100.000 millions – Jt Deed of Hypothecation dated 01.02.1993 for Rs.766.600 millions was modified by an Amendment Agreement dated 09/05/1997 for Rs.689.600 millions (Regn. 02.06.1997 Sr. No 83); modified by 1st Supplemental Deed of Hypothecation dated 31/03/1997 for securing limit of Rs.930.000 millions (regn 03.05.1999 Sr. No 104); modified by 2nd Joint Supplemental Deed of Hypothecation dated 16.08.2000 securing Rs.1110.000 millions (regn: 20.09.2000 Sr. No 127).

Date of instrument Creating the charge

21.05.2010

Amount secured by the charge

Rs.1100.000 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of interest

The consortium of bankers may stipulate different rates of interest individually.

 

Terms of repayment

Repayment as referred in attached 3rd Joint Supplemental Deed of Hypothecation.

 

Margin

The Company shall maintain such margin as may be specified by the banks from time to time.

 

Extent and operation of the charge

The consortium of bankers lead by Bank of Baroda are secured by first charge ranking pari passu of the stocks of raw materials stock in progress semi finished and finished goods consumable stores and spares both present and futures also all the Borrowers Book Debts outstanding monies receivables claims bills etc. both present and future.

Short particulars of the property charged (Including location of the property)

The consortium of banks are secured by first charge ranking pari passu of the stocks of raw materials, stock in progress, semi finished, finished goods, consumable stores and spares, book debts, etc

Date of instrument modifying the charge

16.08.2000

Particulars of the present modification

3rd Joint Supplemental Deed of Hypothecation dated 21st May 2010 securing working capital facilities which was reduced from Rs.1110.000 millions to Rs.1100.000 millions given by 5 consortium bankers lead by Bank of Baroda ie Bank of Baroda – Rs.300.000 millions, Central Bank of India – Rs.200.000 millions, Standard Chartered Bank – Rs.250.000 millions, HDFC Bank – Rs.200.000 millions and Axis Bank – Rs.150.000 millions aggregating to Rs.1100.000 millions. Bank of India and Citibank have withdrawn from the consortium.

 

 

FIXED ASSETS:

 

·         Land- Freehold

·         Building

·         Plant and Machinery

·         Furniture, fitting and Office Equipments

·         Vehicles

·         Technical Known-how

 

 

 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.16

UK Pound

1

Rs.81.80

Euro

1

Rs.68.34

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

68

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

 

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.