MIRA INFORM REPORT

 

 

Report Date :

10.08.2012

 

IDENTIFICATION DETAILS

 

Name :

NITREX CHEMICALS INDIA LIMITED

 

 

Formerly Known As :

QUEST INTERNATIONAL INDIA PRIVATE LIMITED

 

 

Registered Office :

1212-13, Ansal Tower, 38 Nehru Palce, New Delhi – 110019

 

 

Country :

India

 

 

Financials (as on) :

31.09.2010

 

 

Date of Incorporation :

07.02.2001

 

 

Com. Reg. No.:

55-109548

 

 

Capital Investment / Paid-up Capital :

Rs.390.400 Millions

 

 

CIN No.:

[Company Identification No.]

U00000DL2001PLC109548

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

 

Line of Business :

Manufacturer of Industrial Chemicals and Nitrocellulose.

 

 

No. of Employees :

9 (Approximately)  (Only Delhi)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 540000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears to be some losses being incurred by the company. However trade relations are 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.

 

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Piyush

Designation :

Administrative Assistant

Contact No.:

91-11-49114911

Date :

10.08.2012

 

 

LOCATIONS

 

Registered Office / Head Office / Regional Offices 1  :

1212-13, Ansal Tower, 38, Nehru Palce, New Delhi – 110019, India

Tel. No.:

91-11-49114911

Fax No.:

91-11-49114922

E-Mail :

j.bhatia@nitrex.in

b.lal@nitrex.in

Website :

http://www.nitrex.in

Location :

Owned

 

 

Factory:

Near Waterworks, Village Agrama, District Valsad 396 001, Gujarat, India

Tel. No.:

91-2632-254001

Fax No.:

91-2632-249564

E-Mail :

s-vijay@ici.com

 

 

Regional Office 2:

2/24 Happy House, Vakola, Santa Cruz (East) , Mumbai 400 055, Maharashtra, India            

Tel. No.:

91-22-26672261

Fax No.:

91-22-26672233

E-Mail :

shilpas@bol.net.in

 

 

Regional Office 3:

E-5, HIG Flats, Adyar Apartments, Kottur Garden, Chennai – 600085, Tamilandu, India

Tel. No.:

91-44-24470265

Fax No.:

91-11-49114922

E-Mail :

pathanjali@vsnl.com

 

 

Consignment Agents :

Delhi

KRS Chemical Company
20-A Ansari Market, Daryaganj, New Delhi 110 002, India

Contact: Kamal Kapor
Tel: 91-11-23275491
Fax: 91-11-23280977
E mail: krskamal@bol.net.in

 

Vishal Distributors (Private) Limited
A-17 Mansarovar Park, Shahdra, Delhi, India      

Contact : Sudhir Malik
Tel: 91-11-22134893
Fax: 91-11-22282048
E mail: maliksudhir@hotmail.com

 

Asia Chemicals Limited
G.T. Road
, Ghaziabad
, Uttar Pradesh, India       

Contact: Srinagesh
Tel:  91-120-24702853
Fax:  91-120-24700709
E mail: acl@cjnet4u.com

 

Mumbai

Pradip Corporation,

D/3 Jeevan Jyoti, 18/20 Cawasji Patel Street, Fort, Mumbai 400 001, India                                                    

Contact: Rajendra Mashru / Kunal Mashru
Tel: 91-22-28348518 /56311100
Fax: 91-22-28228079 / 22871910
E mail: sales@pradipcorporation.com

 

Chennai

R N Iyer and Son
33 Brahmin Street, Old Pallavaram, Chennai 600 117, India         

Contact: Mr K Sundar
Tel: 91-44-22474910
Email: trendpoly@vsnl.com

 

Kolkata

Mohta Brothers (Private) Limited
Mohta House, 29 Strand Road, Kolkata 700 001, India    

Contact: M K Mohta
Tel: 91-33-22431251
Fax: 91-33-22433252
E mail: aditi@cal.vsnl.net.in

 

 

DIRECTORS

 

As on 31.12.2010

 

Name :

Mr. Bipin Charanjit Lal

Designation :

Managing Director

Address :

S-258, Greater Kailash, Part II, New Delhi 110 048, India

Date of Birth/Age :

01.02.1955

Qualification:

B Tech, MBA

Experience:

33 Years

Date of Appointment :

24.04.2007

DIN No.:

01476224

 

 

Name :

Mr. Mahendra Gumanmal Lodha

Designation :

Director

Address :

85, Sunrise Park, Opposite Drive-in-Road, Thaltej, Ahmedabad 380 054, Gujarat, India

Date of Birth/Age :

04.08.1956

Date of Appointment :

11.08.2008

DIN No.:

00012920

 

 

Name :

Mr. M. R .Rajaram

Designation :

Director

Address :

H2/E-123, DLF City, Phase 5, Gurgaon 122 002, Haryana, India

Date of Birth/Age :

15.03.1946

Date of Appointment :

07.02.2001

DIN No.:

00161064

 

 

Name :

Mr. Gautam Mithalal Jain

Designation :

Additional Director

Address :

7, Nandi Hill, Near Bhav Birjar Temple, Opposite ISRO, Satellite, Ahmedabad 380 015, Gujarat, India

Date of Birth/Age :

18.06.1952

Date of Appointment :

11.08.2008

DIN No.:

00160167

 

 

KEY EXECUTIVES

 

Name :

Mr. Piyush

Designation :

Administrative Assistant

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2010

 

Names of Shareholders (Equity Shares)

 

No. of Shares

Ganapati Rathinam

 

2

Aradhana Chatterjee

 

1

Sanjay Agarwal

 

1

Nitrex Mauritius Limited

 

8350000

Sirius Fianical Services Private Limited

 

5750000

Rasna Processors Private Limited

 

2000000

Mehndra Lodha

 

840000

Dish Infin Consultants Private Limited

 

120000

Pankaj Chadha

 

190000

Samir Ashta

 

120000

Anand Thiyagarajan

 

32000

Sharat Tripathi

 

10000

Amul Niphadkar

 

4000

Nitrex Chemicals Employee Stock Option Trust

 

424000

 

 

 

Total

 

17840004

 

Names of Shareholders (Preference Shares)

 

No. of Shares

Nitrex Mauritius Limited

 

8200000

CDC Group Plc

 

13000000

 

 

 

Total

 

21200000

 

As on 29.03.2011

 

Names of Allottees (Preference Shares)

 

No. of Shares

IDBI Bank Limited, India

 

10746200

 

 

 

Total

 

10746200

 

Equity Share Break up (Percentage of Total Equity)

 

As on 31.12.2010

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

46.80

Bodies corporate

44.11

Directors or relatives of Directors

4.71

Other top fifty shareholders

4.38

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Industrial Chemicals and Nitrocellulose.

 

 

Exports :

 

Products :

·         Industrial Chemicals

·         Nitrocellulose

Countries :

·         Turkey

·         Italy

·         Egypt

 

 

Imports :

 

Products :

Raw Material

Countries :

·         USA

·         Germany

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

PRODUCTION STATUS (As on 31.09.2009)

 

Particulars

Installed Capacity

Valsad

6000

Jhagadia

2000

 

Note: Installed Capacity in Value and or quantity being a technical matter and the higher capacity installed and the permissibility there of is as certified by the managements.

 

GENERAL INFORMATION

 

Customers :

Wholesalers and Retailers

 

·         Sun Chemical Group SPA

 

 

No. of Employees :

9 (Approximately) (Only Delhi)

 

 

Bankers :

·         Standard Chartered Bank, Credit Risk Control, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001, India

·         IDBI Bank Limited, IDBI Tower, WTC Complex, Cuff Parade, Mumbai-400005, Maharashtra, India

 

 

Facilities :

 

(Rs. in Millions)

Secured Loan

As on

31.03.2011

 

As on

31.03.2010

Short Term Loan From a Bank

-Working Capital Loan From Standard Chartered Bank

(Secured by part prri passu first charge on inventory and debtors)

64.834

60.671

Long Term Loans – From Banks

 

 

Rupee Tem Loans From

IDBI Secured by first charges over fixed assets at Valsad

120.000

120.000

Standard Chartered Bank, Secured by a Corporate Guarntee by CDC Group PLC

0.000

170.000

Standard Chartered – Secured by parri passu first chrge on fixed assets of manufacturing facility at jhagdia

135.000

135.000

Foreign Currnecy Temr Loans

(ECB of USD 3,100,000 (3,100,000) Form  Standard Chartered Bank Secured by parri passu first Charges on fixed assets of manufacturing facility at jhagdia)

139.407

156.736

(JPY 437,445,319 (437,445,319) From IDBI – Secured by first Charge over Fixed Assets at Valsad)

231.845

223.769

Funded Interest/Interest Accrued out not due on term Loans

(Secured by first charge over Fixed Assets at Valsad and jhagdia )

70.624

22.576

Total

761.710

888.752

Unsecured Loan

As on

31.03.2011

 

As on

31.03.2010

Financial Leas Obligation (Repayable within one year – Rs.1.629 Millions (Previous Years Rs.2.851 Millions))

7.737

11.402

Total

7.737

11.402

 

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Hitesh Prakash Shah and Comapny

Chartered Accountants

Address :

105, Sakar –I, 1st Floor, Ashram Road, Ahmedabad – 380009, Gujarat, India

Tel. No.:

91-79-26586683/85

Fax No.:

91-79-26586684

PAN.:

APGPS0174L

 

 

Subsidiaries :

Excelex Biopolymers Private Limited

CIN No.: U24119DL2006PTC153535

 

 

CAPITAL STRUCTURE

 

As on 31.12.2010

 

Authorised Capital : Rs.499.400 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.497.862 Millions

 

 

As on 30.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

17940000

Equity Shares

Rs.10/- each

Rs.179.400 Millions

21250000

Preference Shares

Rs.10/- each

Rs.212.500 Millions

 

 

 

 

 

Total

 

Rs.391.900 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

17840004

Equity Shares

Rs.10/- each

Rs.178.400 Millions

21200000

Preference Shares

Rs.10/- each

Rs.212.000 Millions

 

 

 

 

 

Total

 

Rs.390.400 Millions

 

Note:

 

Preference Shares 1,200,000 issued in 2007 – 08 are fully convertible into equity shares at the conversion price of Rs.25 per shares. The earliest date of conversion is 3 years from the date of allotment i.e. October 9, 2010

 

Preference Shares 7,000,000 issued in 2007-8 are fully convertible into equity shares and the converted equity shares rank parri – passu to the existing equity shares capital. The earliest date of conversion is 3 years from the date of allotment i.e. September 17, 2011

 

Preference Shares 13,000,000 issued in 2009-10 are fully convertible into equity shares and the converted equity shares rank parri – passu to the existing equity shares capital. The conversion is excersiable at any at the option of the shareholders.


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

30.09.2010

(18 Months)

31.03.2009

(12 Months)

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

390.400

252.000

112.000

2] Share Application Money

0.000

8.400

0.000

3] Reserves & Surplus

23.500

23.500

69.084

4] (Accumulated Losses)

(278.317)

(147.916)

0.000

NETWORTH

135.583

135.984

181.084

LOAN FUNDS

 

 

 

1] Secured Loans

761.710

888.752

839.950

2] Unsecured Loans

7.737

11.402

26.447

TOTAL BORROWING

769.447

900.154

866.397

DEFERRED TAX LIABILITIES

61.881

73.403

78.010

 

 

 

 

TOTAL

966.911

1109.541

1125.491

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

655.857

803.332

892.948

Capital work-in-progress

116.690

93.852

106.832

 

 

 

 

INVESTMENT

99.683

99.682

14.433

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

94.051

102.147

66.042

 

Sundry Debtors

164.923

168.242

121.411

 

Cash & Bank Balances

2.346

0.813

14.221

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

83.061

83.298

185.737

Total Current Assets

344.381

354.500

387.411

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

231.144

219.970

245.708

 

Other Current Liabilities

9.254

10.234

16.369

 

Provisions

9.302

11.621

14.056

Total Current Liabilities

249.700

241.825

276.133

Net Current Assets

94.681

112.675

111.278

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

966.911

1109.541

1125.491

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

30.09.2010

(18 Months)

31.03.2009

(12 Months)

31.03.2008

 

SALES

 

 

 

 

 

Income

1512.745

756.923

791.325

 

 

Other Income

38.271

39.002

44.437

 

 

TOTAL                                    

1551.016

795.925

835.762

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Sales

1163.332

523.483

591.262

 

 

Staff Cost

124.498

91.947

97.518

 

 

Administrative, Selling and Distribution Expenses

229.434

118.039

172.483

 

 

Exceptional Items

(48.481)

65.407

0.000

 

 

Prior Period Expenses/Income

0.084

2.916

0.000

 

 

TOTAL                                    

1468.867

801.792

861.263

 

 

 

 

 

Less

PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

82.149

(5.867)

(25.501)

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

78.415

93.865

95.167

 

 

 

 

 

 

PROFIT/(LOSS)  BEFORE TAX, DEPRECIATION AND AMORTISATION

(3.734)

(99.732)

(120.668)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

145.657

97.073

93.607

 

 

 

 

 

 

PROFIT/(LOSS)  BEFORE TAX

(141.923)

(196.805)

(214.275)

 

 

 

 

 

Less

TAX                                                                 

11.522

3.306

1.063

 

 

 

 

 

 

PROFIT/(LOSS)  AFTER TAX

(130.401)

(193.499)

(213.212)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(147.916)

45.583

258.795

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(278.317)

(147.916)

45.583

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

NA

265.265

258.466

 

TOTAL EARNINGS

NA

265.265

258.466

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

71.574

129.643

 

TOTAL IMPORTS

NA

71.574

129.643

 

 

 

 

 

 

Earnings/(Loss) Per Share (Rs.)

(7.35)

(16.60)

(21.32)

 

The above information has been parted by Mr. Piyush - Administrative Assistant

 

KEY RATIOS

 

PARTICULARS

 

 

30.09.2010

(18 Months)

31.03.2009

(12 Months)

31.03.2008

PAT / Total Income

(%)

(8.41)

(24.73)

(25.51)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(9.38)

(26.00)

(27.08)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(41.21)

(55.52)

(55.31)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(1.05)

(1.45)

(1.18)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

7.52

8.40

6.31

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.38

1.47

1.40

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sundry Creditors Details:

Rs. In Millions

Particulars

30.09.2010

(18 Months)

31.03.2009

(12 Months)

31.03.2008

Sundry Creditors

 

 

 

Micro, Small and Medium Enterprise and others

27.578

5.452

5.789

Others

203.566

214.518

239.919

Total

231.144

219.970

245.708

 

 

Sr. No.

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

Yes

10]

Designation of contact person

Yes

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

Yes

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

31]

PAN of Proprietor/Partner/Director, if available

No

32]

Date of Birth of Proprietor/Partner/Director, if available

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

Note:

 

Registered office of the company has been shifted from D-43, South Extension- II, New Delhi – 110049, India to the present address w.e.f. 24.05.2010

 

RESULTS OF OPERATIONS

 

This is the sixth full fiscal year (Comprising of 18 months) of the Company’s Operations and it has generated Sales of Rs.1522.500 Millions and incurred Loss before Tax of Rs.141.920 Millions.

 

In view of the operational limitations the management has continued its efforts to reduce debt obligations of the company, m continuation to the One Time Settlement reached with ABN Amro Bank in the previous financial year, this year also the company has reached settlement for one of the loans granted by Standard Chartered Bank (guaranteed by CDC) of Rs.170.000 Millions Under the terms of Settlement CDC has subscribed to Compulsory Convertible Preference Shares to finance repayment of Standard Chartered Bank Loan The gain arising due to this settlement is reflected in exceptional gains.

 

To deal with the situation arising due to unprecedented increase in the prices of Key Feed Stock Raw Cotton Linter (RCL) the management is proposing to shift to alternate feed stock

 

BUSINESS REVIEW

 

The operations during the period, continued to faced uncontrollable and unfavorable conditions, when heavily impacted the profitability of the Company. The continued closure of the JME unit resulted m the non-recovery of outstanding charges and interest cost on the loans taken for the project "he operations at the o:rej urnl located in Valsad also suffered losses. This was due to steep rise in prices of key raw materials. The year also witnessed continued high interest cost and unfavorable foreign exchange rates. These factors together have Significantly contributed to the losses incurred by the Company. The Directors are working upon an improvement plan for the Company by shifting to alternate feed stock from present feed stock of RCL There is a key renewal of the water storage agreement for Valsad manufacturing site, material issue to this have a substantial effects on The viability of the enterprises.

 

Bharuch Eco Aqua Limited has expanded the capacity of common fluent treatment plant (CERT). As a result of that the company is working to recommission the JME unit as main operating unit in next fiscal year;

 

Due to the reasons mentioned above ana till the time JME project become fully operational with alternate feed stock, the short to medium term performance of the company may continue to be under pressure.

 

Standard Chartered Sank has restored the working capital limits at original level of Rs 100.000 Millions and also given m principal sanction for additional term loan of Rs 70.000 Millions for Capital Expenditure requirements of the company

 

SHARE CAPITAL

 

During the year, the Company in the Extraordinary General Meeting of the Company held on 8th January 2009 increased its Authorised Share Capital from Rs.233.500 Millions to Rs.253.500 Millions Further, the Company in the Extraordinary General Meeting of the Company held on 13th March, 2009 increased its Authorised Share Capital from Rs.253.500 Millions To Rs.261.900 Millions. Now the Authorised Share Capital of The Company of Rs 391.900 Millions is divided into 1,79,40,000 Equity Shares of Rs.10/- each and 212,50,000 Preference Shares of Rs 10/- each. The Company allotted 13,000,000 Preference Shares of Rs.10/- each at par to CDC in 2009-10 Pursuant to this allotment the Paid-up Equity Capital of the Company is Rs.170.000 Millions and Paid-up Preference Share Capital of the Company is Rs.212.000 Millions.

 

 

Fixed Assets

 

Tangible Assets:

  • Land – Freehold
  • Land – Leasehold
  • Buildings
  • Plant and Machinery
  • Furniture and Fixtures
  • D P Machine
  • Rolling Stock

 

Intangible Assets:

  • Goodwill
  • Technical Know-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.55.17

UK Pound

1

Rs.86.42

Euro

1

Rs.68.26

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

KVT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

29

 

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.