MIRA INFORM REPORT

 

 

Report Date :

26.04.2012

 

IDENTIFICATION DETAILS

 

Name :

JOTUN INDIA PRIVATE LIMITED

 

 

Registered Office :

502, 5th Floor, Boston House, Suren Road, Behind Cinemax Theatre, Andheri (East), Mumbai – 400093, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010 (15 Months)

 

 

Date of Incorporation :

10.03.2006

 

 

Com. Reg. No.:

11-160431

 

 

Capital Investment / Paid-up Capital :

Rs.843.500 Millions

 

 

CIN No.:

[Company Identification No.]

U24224MH2006PTC160431

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMJ12022D

 

 

PAN No.:

[Permanent Account No.]

AABCJ6665J

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of Decorative and Industrial Paints.

 

 

No. of Employees :

300 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1000000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability of the company appears to be under severe pressure. There appears to be huge accumulated losses recorded by the company. Trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

NOTES:

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

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INFORMATION DECLINED BY

 

Management Non Co Operative (Name Not Disclosed)

 

LOCATIONS

 

Registered Office :

502, 5th Floor, Boston House, Suren Road, Behind Cinemax Theatre, Andheri (East), Mumbai – 400093, Maharashtra, India

Tel No.:

91-22-28224600 / 67872100

Fax No.:

91-22-28205900

E-Mail :

harshita.chhabra@jotun.com

nilesh.nagwekar@jotun.com

vijay.bhatt@jotun.com

csd.india@jotun.com

jotun.mumbai@jotun.com

anthony.wong@jotun.com

flora.das@jotun.com

Website :

www.jotun.com

 

 

Factory :

D- 280, MIDC, Ranjangaon, Shirur, Pune – 419204, Maharashtra, India

Tel. No.:

91-260-2242603

Fax No.:

91-260-2241027

Website :

http://www.jotun.com

 

 

Warehouse :

Located at:

 

·         Bhivandi

 

 

Sales Office :

Prince Plaza, 2nd Floor, 73 Pantheon Road, Egmore, Chennai – 600008, Tamilnadu, India

Tel No.:

91-44-28419420/ 28510861

Fax No.:

91-44-28419513

Email :

jotun.chennai@jotun.com

 

 

DIRECTORS

 

AS ON 25.09.2010

 

Name :

Mr. Esben Hersve

Designation :

Director

Address :

Ornevejen 17, Sandefjord, Norway, Sandefjord – 003209, Norway

Date of Birth :

27.06.1960

Date of Appointment :

31.03.2006

Din No.:

02012551

Other Directorship:

 

S.No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Date of cessation

Company Status

Defaulting status

1

U24224MH2006PTC160431

JOTUN INDIA PRIVATE LIMITED

Director

06-06-07

31-03-06

-

Active

NO

 

 

Name :

Mr. Erik Reinholt Aaberg

Designation :

Director

Address :

P. O. Box 3671, Dubai 009714, United Arab Emirates

Date of Birth :

18.08.1951

Date of Appointment :

31.03.2006

Din No.:

00082179

Other Directorship:

 

S.No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Date of cessation

Company Status

Defaulting status

1

U24224MH2006PTC160431

JOTUN INDIA PRIVATE LIMITED

Director

06-06-07

31-03-06

-

Active

NO

 

 

Name :

Mr. Martin Al Leng Chew

Designation :

Additional Director

Address :

The Meadows 5, Villa, 40, Street- II, Dubai, United Arab Emirates

Date of Birth :

02.09.1967

Date of Appointment :

24.09.2008

Din No.:

02478901

Other Directorship:

 

S.No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Date of cessation

Company Status

Defaulting status

1

U24224MH2006PTC160431

JOTUN INDIA PRIVATE LIMITED

Director

26-06-09

24-09-08

-

Active

NO

 

 

Name :

Mr. Liang Hoong Wong

Designation :

Additional Director

Address :

33, Hindhede Walk Apartment-07-11, Singapore 587968

Date of Birth :

03.11.1958

Date of Appointment :

30.09.2010

Din No.:

02614703

Other Directorship:

 

S.No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Date of cessation

Company Status

Defaulting status

1

U24229MH2004PTC191195

JOTUN POWDER COATINGS (INDIA) PRIVATE LIMITED

Director

26-06-09

18-03-09

-

Active

NO

2

U24224MH2006PTC160431

JOTUN INDIA PRIVATE LIMITED

Director

30-09-11

30-09-10

-

Active

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. Ram Kelkar

Designation :

Manager in Credit Contract

 

 

Name :

Ms. Harshita Chhabra

Designation :

Company Secretary

Address :

3/256, Basant Building, Sher-e-Punjab Colony, Andheri (East), Mumbai - 400 093, Maharashtra, India

Date of Birth :

18.09.1985

Date of Appointment :

09.03.2010

PAN No.:

AIFPC9312G

 

 

Name :

Mr. Liang Hoong Wong

Designation :

General Manager

 

 

Name :

Percy N. Jijina

Designation :

General Manager – Deco

 

 

Name :

Mr. Kumar Gopalan

Designation :

Manager Finance and IT

 

 

Name :

Mr. Bijoy Kumar Mukherjee

Designation :

General Manager Sales and Service

 

 

Name :

Mr. Sairam R. Iyer

Designation :

Operations Manager

 

 

Name :

Mr. Shovan Das

Designation :

Divisional Marketing Support Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 25.09.2010

 

Names of Shareholders

 

No. of Shares

Jotun AS, Norway

84349999

Jotun Singapore (Pte) Limited, Singapore  

1

 

 

Total

 

84350000

 

 

AS ON 30.09.2010

 

Names of Allottees

 

No. of Shares

Jotun A/S, Norway

10339000

 

 

Total

10339000

 

 

AS ON 25.09.2010

 

Equity Share Breakup

Percentage of Holding

Category

 

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

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Decorative and Industrial Paints.

 

 

Products :

Product Description

ITC Code

 

Liquid Paints and Power Coatings

303.2 and 303.9

 

 

Exports :

 

Products :

·         Paints

Countries :

·         Bangladesh

·         Sri Lanka

·         Gulf Countries

 

 

Imports :

 

Products :

·         Raw material

Countries :

·         Thailand

·         Singapore

·         Malaysia

·         France  

·         European Countries

 

 

Terms :

 

Selling :

L/C, Cash, Credit: 30/60/90 Days

 

 

Purchasing :

L/C, Cash, Credit: 30/60/90 Days

 

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Unit

Installed Capacity

Actual Production

Paint

Liters

20000000

8690328

Powder

Kgs.

5000000

2602496

 

 

GENERAL INFORMATION

 

Customers :

·         End Users and OEM’s

·         Dealers

·         Distributors

 

 

No. of Employees :

300 (Approximately)

 

 

Bankers :

·         CITI Bank,

Fort Branch, Mumbai, Maharashtra, India

 

·         CITI Bank N.A.,

CITI Group Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2010

(Rs. In Millions)

(15 Months)

31.12.2008

(Rs. In Millions

(12 Months)

 

 

 

Term Loan from Bank 

330.000

330.000

Interest accrued and due on the above

(Secured by first exclusive charge on all book debts and receivables of the company, present and future.)

0.782

2.750

 

 

 

Total

 

330.782

332.750

 

 

Unsecured Loans

31.03.2010

(Rs. In Millions)

(15 Months)

31.12.2008

(Rs. In Millions

(12 Months)

Short Term Loans and advances

 

 

- From Banks*

579.235

160.000

Other Loans and advances

 

 

- From Bank

0.000

250.000

- From Others

[Due within one year Rs. Nil (previous year Rs. Nil)]

405.990

437.115

Interest accrued and due on the above

2.225

2.540

 

 

 

Total

 

987.450

849.655

 

* Interest Rs. 332.225 millions which is against comfort letter issued by holding company.

  

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.R. Batliboi and Company

Chartered Accountants

Address :

Jalan Mill Compound, 95 Ganpataran Madan Marg, Lower Parel, Mumbai – 400 021, Maharashtra, India 

Tel No. :

91-22-40356300

Fax No. :

91-22-40356400

 

 

Holding Company :

·         Jotun AS, Norway

Line of Business: Manufacturer and Importer of Decorative and Industrial Paints.

 

 

Fellow Subsidiaries/ Associates :

·         Jotun Singapore Pte. Limited

·         Jotun Ausmalia Pty. Limited

·         Jotun Abu Dliabi Limited (L.L.C.)

·         Jotun Paints Europe Limited

·         Jotun Hellas Limited

·         Jotun (Malaysia) Sdn. Bhd.

·         Sotun Paints (Vietnam) Company Limited

·         Jotun Thailand Limited

·         Jotun U .A.E. Limited (L.L.C.)

·         Jotun F.Z.E.

·         Jotun Cosco Marine Coatings (HK) Company Limited

·         Jotun Powder Coatings India Private Limited.

·         Jotun Italia S.p.A

·         E)-Mohandes Jotun Egypt (S.A.E.)

·         Chokwang Jotun Limited

·         Jotun Paints South Africa (Pty) Limited

·         Jotun Powder Coatings (Thailand) Limited

·         Jotun Powder Coatings UAE Limited (L.L.C.)

·         Jotun Powder Coatings (CZ) AS

·         Jotun Cosco Marine Coatings (GZ) Company Limited

·         Jotun Coatings (Zhangjiagang) Company Limited

·         Jotun Paints Company L.L.C

·         lorun Danmark A/s

·         Nor-Maali Oy

·         Jotun Powder Coatings AS Norway

·         lotun Brasil Imp.Exp and Industria de Tintas Ltda.

·         P.T. Jotun Indonesia

·         Jotun Boya Sari.ve Tic. A.S.

·         Jotun Saudia Company Limited

·         Jotun Iberica S.A.

·         Jotun Powder Coatings (M) Sdn. Bhd.

·         Jotun Powder Coatings Saudi Arabia Company Limited

·         Jotun Powder Coatings (N) AS

·         Jotun Paints, Inc.

·         Jotun Yemen Paints Company Limited

 

 

CAPITAL STRUCTURE

 

AFTER 25.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

125000000

Equity Shares

Rs.10/- each

Rs.1250.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

111181667

Equity Shares

Rs.10/- each

Rs.1111.817 Millions

 

 

 

 

 

 

AS ON 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000000

Equity Shares

Rs.10/- each

Rs.1000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

84350000

Equity Shares

Rs.10/- each

Rs.843.500 Millions

 

 

 

 

 

NOTE:

 

84349999 (previous year 51762499) equity share of Rs. 10/- each are held by Jotun AS, the holding company.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

(15 Months)

31.12.2008

(12 Months)

31.12.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

843.500

517.625

 131.000

2] Share Application Money

0.000

0.000

 101.500

3] Reserves & Surplus

310.740

0.000

 0.000

4] (Accumulated Losses)

(838.768)

(433.831)

 (107.130)

NETWORTH

315.472

83.794

 125.370

LOAN FUNDS

 

 

 

1] Secured Loans

330.782

332.750

 50.259

2] Unsecured Loans

987.450

849.655

 383.620

TOTAL BORROWING

1318.232

1182.405

 433.879

DEFERRED TAX LIABILITIES

0.000

0.000

 0.000

 

 

 

 

TOTAL

1633.704

1266.199

 559.249

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

808.570

862.299

 76.672

Capital work-in-progress including capital advances

6.687

1.387

 493.894

 

 

 

 

INVESTMENT

0.000

0.000

 0.000

DEFERREX TAX ASSETS

0.000

0.000

 0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
469.093
386.776

 22.013

 

Sundry Debtors
723.600
302.835

 37.361

 

Cash & Bank Balances
51.808
18.915

 7.617

 

Other Current Assets
0.000
0.000

 0.000

 

Loans & Advances
153.690
164.198

 35.966

Total Current Assets
1398.191
872.724

 102.957

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

430.462

410.353

103.385

 

Other Current Liabilities
131.385
55.954

8.681

 

Provisions
17.897
3.904

 2.208

Total Current Liabilities
579.744
470.211

 114.274

Net Current Assets
818.447
404.513

 (11.317)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

 0.000

 

 

 

 

TOTAL

1633.704

1266.199

 559.249

 

PROFIT & LOSS ACCOUNT

   

 

PARTICULARS

31.03.2010

(15 Months)

31.12.2008

(12 Months)

31.12.2007

 

SALES

 

 

 

 

 

Income

2100.856

464.637

 112.144

 

 

Other Income

6.611

63.758

NA

 

 

TOTAL                                    

2107.467

528.395

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Expenses including Depreciation

2507.813

850.731

NA

 

 

Prior Period Adjustment for communication expenses

3.373

0.000

NA

 

 

TOTAL                                    

2511.186

850.731

NA

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX

(403.719)

(322.336)

(71.948)

 

 

 

 

 

Less

TAX                                                                 

1.218

4.365

2.059

 

 

 

 

 

 

PROFIT(LOSS) AFTER TAX

(404.937)

(326.701)

 (74.007)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(433.831)

(107.130)

NA

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(838.768)

(433.831)

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Sales Support Fee

0.000

59.132

 43.005

 

 

Exports

21.469

1.611

0.000

 

TOTAL EARNINGS

21.469

60.743

43.005

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

26.700

44.319

 3.296

 

 

Raw Materials

672.779

230.350

0.000

 

 

Traded Goods

200.738

258.519

 49.589

 

TOTAL IMPORTS

900.217

533.188

52.885

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(4.80)

NA

NA

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

(15 Months)

31.12.2008

(12 Months)

31.12.2007

PAT / Total Income

(%)
(19.17)
(61.83)

NA

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
(19.22)
 (69.37)

 (64.16)

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(18.29)
 (18.58)

 (40.05)

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
(1.28)
 (3.85)

 (0.57)

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
6.02
 19.72

 4.37

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.41
 1.86

 0.90

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

No

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter's background

Yes

8) No. of employees

Yes

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

Yes

20) Export / Import details (if applicable)

Yes

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

No

30) Major Shareholders, if available

Yes

 

SUNDRY CREDITORS DETAILS

 

Particulars

31.03.2010

(15 Months)

31.12.2008

(12 Months)

31.12.2007

 
 

 

 

Sundry Creditors

430.462

410.353

103.385

 

NOTE

The Registered Office of the company has been shifted from 204 and 205, Ascot Centre, Sahar Road, Andheri (East), Mumbai – 400099, Maharashtra, India, to the present address.

 

BACKGROUND

Subject was incorporated on 10.03.2006 as a 99.99% subsidiary of Jotun AS, Norway (or the holding company). The Company is incorporated to undertake manufacturing of Liquid Paints and powder coatings.

 

FINANCIAL YEAR

The Company was following Calendar year as its statutory financial year under the Companies Act, 1956, while for the Income Tax Act, 1961, they used to get the audit of accounts done on tax financial year basis, i.e. April to March. So, to assure uniformity and save the duplicity, the statutory financial year was changed from January-December to April-March. Accordingly, the financials are made for period from 01.01.2009, to 31.03.2010.

 

PERFORAMNCE

The operations of the plant are improving at a steady rate and they are deploying the resources in the best possible way to increase the business volumes. 

 

CONTINGENT LIABILITIES:

Rs. In Millions

Particulars

31.03.2010

(15 Months)

31.12.2008

(12 Months)

 

 

 

Income Tax for Assessment year 2007-08 in respect of which company has gone in appeal

--

2.063

Custom Duty on pending export obligation on EPCG

21.906

18.941

Capital Commitments

1.078

0.000

 

 Form 8

 

Corporate identity number of the company

U24224MH2006PTC160431

Name of the company

JOTUN INDIA PRIVATE LIMITED

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

204 and 205, Ascot Centre, Sahar Road, Andheri (East), Mumbai – 400 099, Maharashtra

This form is for

Creation of charge

Type of charge

Book Debts

Particular of charge holder

Citi Bank N.A.

Citi Group Centre, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

Nature of instrument creating charge

Deed of Hypothecation

Date of instrument Creating the charge

04.08.2008

Amount secured by the charge

Rs.350.000 millions

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

Rate of interest

As determined by the Bank from time to time.

 

Terms of repayment

As determined by the Bank from time to time.

 

Margin

As stipulated by the Bank from time to time

 

Extent and operation of the charge

First charge

 

Others

·         Citibank as its sole discretion may, at request of the company vary or diversify the facilities.

·         Term Loan Agreements dated 10.12.2007 and 28.03.2008 along with amendatory agreements dated 12.09.2008 and 22.09.2008 respectively shall always be deemed to form part of this Deed of Hypothecation.

Particulars of the property charged

All present and future book-debts, outstanding moneys, receivables, claims, bills, chooses in action, contracts, engagements and securities in respect of and / or relating to the Project which are now due and owing and / or which mat at any time hereafter during the continuance of this security become due and owing to the Company. 

 

Fixed Assets

 

·         Leasehold Land

·         Building

·         Leasehold Improvements

·         Office Equipment

·         Computer / EDP Equipment

·         Plant and Machinery

·         Motor Vehicles

·         Furniture and Fixture

·         Software

 

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.52.48

UK Pound

1

Rs.84.66

Euro

1

Rs.67.85

 

 

INFORMATION DETAILS

 

Report Prepared by :

MYI

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

--

--CREDIT LINES

1~10

4

--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

 

26

 

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.