MIRA INFORM REPORT

 

 

Report Date :

31.08.2012

 

IDENTIFICATION DETAILS

 

Name :

BALKRISHNA PAPER MILLS LIMITED

 

 

Registered Office :

318 – 320 Creative Industrial Estate, 72 N M Joshi Marg, Lower Parel, Mumbai – 400011, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

10.03.2007

 

 

Com. Reg. No.:

11-168591

 

 

Capital Investment / Paid-up Capital :

Rs. 49.500 Millions

 

 

CIN No.:

[Company Identification No.]

U21093MH2007PLC168591

 

 

PAN No.:

[Permanent Account No.]

AADCB0910G

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in manufacturing of “Coated Duplex/ Triplex Boards and Folding Box Boards” segment.

 

 

No. of Employees :

Information denied by management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 1800000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an 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.

 

The company can be considered normal for business dealings at usual trade terms and condition.

 

NOTES :

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

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Short term rating A3

Rating Explanation

This rating are considered to have moderate degree of safety regarding timely payment of financial obligations such instruments carry higher credit risk.

Date

August 2011

 

 

Rating Agency Name

CARE

Rating

Long term BBB

Rating Explanation

This rating are considered to have moderate degree of safety regarding timely servicing of financial obligation such instruments carry moderate credit risk.

Date

August 2011

 

 

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 DENIED BY

 

MANAGEMENT NON CO – OPERATIVE (91-22-61207900)

 

 

LOCATIONS

 

Registered Office :

318 – 320 Creative Industrial Estate, 72 N M Joshi Marg, Lower Parel, Mumbai – 400011, Maharashtra, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

shares@bkt-tires.com

 

 

Factory :

Ambivil Post Mohane, Taluka Kalyan, District Thane, Maharashtra, India

Tel. No.:

91-251-2270701

 

 

DIRECTORS

 

AS ON 04.08.2012

 

Name :

Mr. Arvind Kumar Late Mahabir Prasad Poddar

Designation :

Chairman

Address :

94, Mount Unique, 62 A, A G. Deshmukh Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

07.11.1957

Qualification :

B.Com

Date of Appointment :

10.03.2007

PAN No.:

AACPP2352E

DIN No.:

00089984

 

 

Name :

Mr. Anurag Pawankumar Poddar

Designation :

Director

Address :

1401, Nepeansea House, Nepeansea Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

13.07.1981

Qualification :

MBA - Finance, DREXEL University

Date of Appointment :

10.03.2007

PAN No.:

AACPP1926G

DIN No.:

00599143

 

 

Name :

Mr. Kishanlal Jangir

Designation :

Whole-time director

Address :

A 103, Shree Laxmi Narayan Apartment, Sec H, Jesal Oark, Bhyandar, Thane – 401105, Maharashtra, India

Date of Birth/Age :

05.03.1958

Qualification :

PG in EAFM

Date of Appointment :

30.10.2007

DIN No.:

01907765

 

 

Name :

Mr. Sachin Nath Chaturvedi

Designation :

Director

Address :

2803/ 04, 28th floor, Shreepati Arcade, A K Marg Nana Chowk, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

30.09.1950

Qualification :

B. Tech, F.C.A, MBA, D.I.S.A

Date of Appointment :

16.05.2008

DIN No.:

00553459

 

 

Name :

Mr. Rakesh Nathmal Garodia

Designation :

Director

Address :

4, Piramal Industrial Estate, S V Road, Goregaon (West), Mumbai – 400062, Maharashtra, India

Date of Birth/Age :

15.09.1963

Qualification :

B.Com

Date of Appointment :

24.05.2010

DIN No.:

00143438

 

 

Name :

Mr. Ankit Poddar

Designation :

Whole-time director

Address :

52, Mount Unique, 62-A, Peddar Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

30.10.1988

Date of Appointment :

09.05.2011

DIN No.:

03521731

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 04.08.2012

 

Names of Shareholders

 

No. of Shares

Balkrishna Industries Limited, India

 

2999400

Arvindkumar M Poddar

 

100

Rameshkumar D Poddar

 

100

Shrikishan Poddar

 

100

Rajiv Poddar

 

100

Sangeeta Poddar

 

100

Gaurav P Poddar

 

100

Total

 

3000000

 

 

Names of Preference Shareholders

 

No. of Shares

Balkrishna Industries Limited, India

 

1950000

Total

 

1950000

 

 

AS ON 04.08.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in manufacturing of “Coated Duplex/ Triplex Boards and Folding Box Boards” segment.

 

 

Products :

ITC Code

Product Descriptions

481039

Paper and Paper Boards

 

 

PRODUCTION STATUS AS ON (31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production Qty.

Paper/ Paper Boards *

Metric Tonnes

72,000

60,000

14,290,497

 

* Including Coated Paper / Paper Boards.

 

Note:

i) Licenced capacities include additional capacities for which Memoranda have been filed with appropriate Government Authorities, under the scheme of delicencing notified by the Government of India.

 

ii) The difference in quantities is on account of wastages and free samples

 

iii) Installed Capacity of Paper Boards is based on the product mix and on GSM of Paper Boards manufactured.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information denied by management.

 

 

Bankers :

Standard Chartered Bank, Crescenzo, 3A/F, Plot No. C – 38 and 39, G Block, Bandra Kurla Complex, Mandra East, Mumbai – 400051, Maharashtra, India

 

 

Facilities :

Unsecured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

Other debt unsecured

22.357

21.374

Total

22.357

21.374

 

Note: It includes Short term advances Rs. 698,853 and Other loans and advances Rs. 21,657,842.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Jayantilal Thakkar and Company

Chartered Accountants

Address :

111-A, Mahatma Gandhi Road, Fort, Mumbai – 400023, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AAAFJ3458R

 

 

Holding Company :

Balkrishna Industries Limited [L99999MH1961PLC012185]

 

 

Other Related Parties :

Siyaram Silk Mills Limited

Vishal Furnishing Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3,000,000

Equity Shares

Rs. 10/- each

Rs. 30.000 Millions

2,000,000

Preference Shares

Rs. 10/- each

Rs. 20.000 Millions

 

Total

 

Rs. 50.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3,000,000

Equity Share

Rs.10/- each

Rs. 30.000 Millions

1,950,000

Preference Shares

Rs. 10/- each

Rs. 19.500 Millions

 

Total

 

Rs. 49.500 Millions

 

Note:

 

1) All the above shares are held by the Holding Company viz. Balkrishna Industries Limited and its nominees

 

2) Terms of Redemption / Conversion of Preference Shares :- i) Redemption : a) To be redeemed at premium of Rs. 90 per share in three installments at the end of 4th,5th and 6th year from the date of allotment as under : End of 4th year i.e. on 18-12-2011 30% End of 5th year i.e. on 18-12-2012 35% End of 6th year i.e. on 18-12-2013 35% b) The company has an option to redeem the Preference Shares at a premium at any time after the end of 12 months from the date of allotment i.e. on or after 18-12-2008 ii) Conversion : The company has an option to convert the Preference Shares into the Equity Shares after the end of 18 months from the date of allotment i.e. on or after 18.06.2009. Each Preference Share would be converted into 10 Equity Shares of Rs. 10 each.

 

 


 

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

 

 

 

1] Share Capital

49.500

49.500

49.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

411.324

338.140

264.148

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

460.824

387.640

313.648

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

22.357

21.374

22.019

TOTAL BORROWING

22.357

21.374

22.019

DEFERRED TAX LIABILITIES

18.407

16.127

12.737

 

 

 

 

TOTAL

501.588

425.141

348.404

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

156.737

145.172

139.122

Capital work-in-progress

144.393

72.770

52.983

 

 

 

 

INVESTMENT

113.179

107.533

15.002

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

102.280

119.700

88.247

 

Sundry Debtors

91.037

100.263

102.517

 

Cash & Bank Balances

1.612

2.596

0.449

 

Other Current Assets

0.674

1.054

1.777

 

Loans & Advances

115.898

86.676

76.462

Total Current Assets

311.501

310.289

269.452

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

116.995

123.854

80.893

 

Other Current Liabilities

5.945

14.868

10.177

 

Provisions

101.282

71.901

37.085

Total Current Liabilities

224.222

210.623

128.155

Net Current Assets

87.279

99.666

141.297

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

501.588

425.141

348.404

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

1585.729

1421.335

1148.462

 

 

Other Income

39.568

38.166

20.339

 

 

TOTAL                                    

1625.297

1459.501

1168.801

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Administrative selling other expenses

1509.751

1338.669

1093.331

 

 

TOTAL                                    

1509.751

1338.669

1093.331

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

115.546

120.832

75.470

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

1.906

1.818

2.401

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION                                  

113.640

119.014

73.069

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

8.858

8.004

7.389

 

 

 

 

 

 

NET PROFIT (LOSS) BEFORE TAX, PRIOR PERIOD AND EXTRAORDINARY ITEMS

104.782

111.010

65.680

 

 

 

 

 

Less/ Add

PRIOR PERIOD ITEMS BEFORE TAX

[0.091]

0.000

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX              

104.691

111.010

65.680

 

 

 

 

 

Less

TAX                                                                 

31.280

36.791

22.224

 

 

 

 

 

 

PROFIT AFTER TAX                            

73.411

74.219

43.456

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

162.640

88.648

45.420

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Preferred Dividend

0.195

0.195

0.195

 

 

Tax on Preference Dividend

0.032

0.032

0.033

 

BALANCE CARRIED TO THE B/S

235.824

162.640

88.648

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods on FOB Basis

81.481

97.373

21.503

 

 

Recovery towards Freight and Insurance on Exports

0.786

0.938

2.741

 

 

Claim Received

0.018

0.194

0.000

 

TOTAL EARNINGS

82.285

98.505

24.244

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

94.360

157.595

138.567

 

 

Stores & Spare Parts

12.890

6.923

8.121

 

TOTAL IMPORTS

107.250

164.518

146.688

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

24.39

24.66

14.41

 

Diluted

3.26

3.29

1.93

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

4.52

5.09

3.72

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.07

7.81

5.72

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

22.36

24.37

16.08

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.23

0.29

0.21

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.54

0.60

0.48

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.39

1.47

2.10

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2011

31.03.2010

 

31.03.2009

 

(Rs. In Millions)

Creditors due small micro enterprises

0.000

0.000

0.000

Creditors due others

116.995

123.854

80.893

Sundry creditors

116.995

123.854

80.893

 

 

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

No

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

No

20]

Export / Import details (if applicable)

No

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

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

Note: The registered address of the company has been shifted from C/14, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India to the present w.e.f. 04.08.2012

 

 

OPERATIONS:

 

The Company is engaged in manufacturing of “Coated Duplex/ Triplex Boards and Folding Box Boards” segment. The end uses of the products of the Company, after the same is printed/converted by independent converters, are highly diversified and some typical applications are in Pharmaceuticals, Toiletries, Cosmetics and Health Care products, readymade Garments, Instant Food Products, Match Boxes, Agarbatty segments, Cigarette packing, wedding cards, besides many other packaging requirements. The applications of the Coated Boards are well diversified and ever expanding. This segment of the industry has witnessed a healthy growth over the past decade and is expected to continue to grow annually at a rate approximately 7%

 

The production for the year was 53,392 MT against 57,050 MT in the previous year and the sales and other related income including interest for the year was at Rs. 1690.900 Millions as against Rs. 1515.800 Millions in the previous year. The gross profit for the year is Rs. 113.600 Millions and the profit after tax is at Rs. 73.500 Millions.

 

The Company has been continuously adopting multipronged activities to be a competitive and low cost producer, and always looks to maximize productivity of the available resources.

 

Major emphasis has been on:

 

Continuous working on cost reductions, with specific emphasis on costs of raw materials and power and fuel and Investment in technologies with an intention to de-bottleneck the plant to become a low cost producer based on higher operating efficiencies.

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U21093MH2007PLC168591

Name of the company

BALKRISHNA PAPER MILLS LIMITED

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

C/14, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

 

This form is for

Creation of charge

Type of charge

Movable Property

Particular of charge holder

Standard Chartered Bank, Crescenzo, 3A/F, Plot no. C-38 and 39, G Block, Bandra Kurla Complex, Bandra East, Mumbai – 400051, Maharashtra, India

Email ID: nilesh.babar@sc.com

Nature of description of the instrument creating or modifying the charge

Unattested Memorandum of Hypothecation

Date of instrument Creating the charge

24.02.2012

Amount secured by the charge

Rs. 150.000 Millions

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

Rate of Interest

Credit Facilities.

Interest / Commission - As agreed by and with the Bank from time to time.

 

Terms of Repayment

As agreed by and with the Bank from time to time.

 

Margin

As agreed by and with the Bank from time to time.

 

Extent and Operation of the charge

The Bank is having first pari passu charge on the security given by the Company, as described in sr. no. 15 below.

 

The security by way of hypothecation has been created in favour of Standard Chartered Bank for the purpose of securing the ECB facility to the extent of USD 3 Mn granted / to be granted to the Borrower.

 

Others

For the purpose of filing the Form 8, it is clarified that the Facility Amount is repayable in USD, hence, any repayment from the sale / enforcement proceeds of the above said assets shall be made at the prevailing foreign currency exchange rate, for conversion from Indian Rupees to USD, at the time of repayment, to ensure full repayment of the Facility Amount.

Short particulars of the property charged

Hypothecation by way of first pari passu charge on all present and future movable properties of the borrower including without limitation its movable plant & machinery, furniture & fittings, equipment, computer hardware, computer software, tools and accessories and other movables, both, whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these present by brought into or upon or be stored or be in or about any or all the borrower's premises, warehouses, stockyards and godowns or those of the borrower's agents, affiliates, associates or representatives or at various worksites or at any up country place or places or wherever else the same may be or be held by any party

 

 

CONTINGENT LIABILITIES IN RESPECT OF:

(Rs. In Millions)

Particulars

31.03.2011

31.03.2010

Guarantee given by the Company's banker on behalf of the company against the Company's indeminity

12.516

8.748

Disputed claims for excise and sales tax

51.847

43.452

Disputed income tax demand

2.626

0.000

Other claims against the Company not acknowledged as debts(Workmen and other business claims)

61.160

58.359

 

(The outflow in respect of contingent liabilities is totally uncertain as the same depends on the final outcome of the disputes, wherever applicable)

 

 

FIXED ASSETS:

 

Tangible Assets

 

Ø       Freehold Land

Ø       Buildings and Roads

Ø       Plant and Machinery

Ø       Factory, Office and Other Equipments

Ø       Electric Installations

Ø       Furniture and Fixture

Ø       Vehicles

Ø       Air Conditioners

 

Intangible Assets

 

Ø       Computer 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. 55.65

UK Pound

1

Rs. 88.10

Euro

1

Rs. 69.84

 

 

INFORMATION DETAILS

 

Information Gathered by :

JML

 

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

48

 

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

 

 

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.