MIRA INFORM REPORT

 

 

Report Date :

21.12.2012

 

IDENTIFICATION DETAILS

 

Name :

MAHARASHTRA STATE ELECTRICITY TRANSMISSION COMPANY LIMITED

 

 

Registered Office :

Prakashganga, Plot No. C 19, E Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

31.05.2005

 

 

Com. Reg. No.:

11-153646

 

 

Capital Investment / Paid-up Capital :

Rs. 0.500 Million

 

 

CIN No.:

[Company Identification No.]

U40109MH2005SGC153646

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUM27049E

 

 

PAN No.:

[Permanent Account No.]

AAECM2936N

 

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The Company engaged in Transmission of Electricity.

 

 

No. of Employees :

Information Declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (77)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 136000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a State Government Company engaged in Transmission of Electricity.

 

It is a well established company having a fine track record. Financial position of the company appears to be sound. Fundaments are strong and healthy. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments.

 

Since it is government company, the creditors and lenders can be confident of their exposure in the company.

 

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

 

NOTES :

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

 

 

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

 

 

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 DECLINED BY

 

Name :

Ms. Jyoti

Designation :

Company Secretary

Contact No.:

91-22-26595031

Date :

20.12.2012

 

 

LOCATIONS

 

Registered Office :

Prakashganga, Plot No. C 19, E Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Tel. No.:

91-22-26595031/ 5000

Mobile No.:

91-9930444303 (Ms. Jyoti Arora)

Fax No.:

91-22-26592316

E-Mail :

cs.mseb123@gmail.com

Website :

www.mahatransco.in

 

 

DIRECTORS

 

AS ON 31.12.2012

 

Name :

Mr. Arvind Singh

Designation :

Chairman and Managing Director

Address :

36, Ambar Narayan Dabholkar Marg, Malber Hills, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

14.05.1963

Date of Appointment :

21.08.2009

DIN No.:

02780573

 

 

Name :

Mr. R. M. Premkumar

Designation :

Chairman (Ceased w.e.f. 11th June 2010)

 

 

Name :

Mr. Subrat Ratho

Designation :

Principal Secretary (Energy) Director (w.e.f. 22nd June 2010 till 2nd August 2011)

Address :

38, Amber Apartments, 9th floor, Narayan Dabholkar Marg, Malba Hills, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

10.10.1962

Date of Appointment :

22.06.2010

DIN No.:

00502716

 

 

Name :

Mr. Sitaram Kunte

Designation :

Principal Secretary (Energy) Director (w.e.f. 3rd August 2011 till 17th November 2011)

 

 

Name :

Mr. Vidyadhar Kanade

Designation :

Principal Secretary (Energy) Additional Director (w.e.f. 17th November 2011)

 

 

Name :

Mr. Pramod G Khandalkar

Designation :

Director (Finance) (ceased w.e.f. 7th May 2010)

 

 

Name :

Mr. D. D. Wavhal

Designation :

Director (Finance) (w.e.f 7th May 2010 till 25th April 2011)

 

 

Name :

Mr. Pratap G Mohite

Designation :

Director (Finance) (w.e.f 25th April 2011)

 

 

Name :

Mr. Uttam G Zalte

Designation :

Director (Operations) (Appointed w.e.f 5th August 2010)

Address :

3B, Saudamini, MSEB, Officer’s Haji Ali, Mumbai, Maharashtra, India

Date of Birth/Age :

09.03.1955

Date of Appointment :

05.08.2010

DIN No.:

03178875

 

 

Name :

Mr. W. R. Aswar

Designation :

Director (Projects) (ceased w.e.f 3rd March 2011)

Address :

C- Soudamaini MSEB Smit Quarts, Hajiali, Mumbai, Maharashtra, India 

Date of Birth/Age :

28.07.1949

Date of Appointment :

04.03.2008

DIN No.:

02101334

 

 

Name :

Mr. Omprakash K Yempal

Designation :

Director (Projects) (w.e.f 6th July 2011)

 

 

Name :

Mr. Avinash Patil

Designation :

Independent Director (ceased w.e.f. 25th July 2011)

Address :

Lakshmi Nirmal House, Plot No. 299, N-3, Sector – CIDCO, Aurangabad – 431003, India

Date of Birth/Age :

14.10.1957

Date of Appointment :

03.12.2008

DIN No.:

00506035

 

 

KEY EXECUTIVES

 

Name :

Ms. Jyoti Arora

Designation :

Company Secretary

Address :

508 B-Wing Meera Arcade Sector – 20, Shilpa Chowk, Kharghar, Navi Mumbai – 410210, Maharashtra, India

Date of Birth/Age :

31.08.1976

Date of Appointment :

18.02.2010

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2010

 

Names of Shareholders

 

No. of Shares

Subrat Ratho

 

49940

Arvind Singh

 

10

D.D. Wavhal

 

20

Kunda DS

 

10

C.K. Jadhav

 

10

D.K. Kharat

 

10

Total

 

50000

 

 

BUSINESS DETAILS

 

Line of Business :

The Company engaged in Transmission of Electricity.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information Declined by the management

 

 

Bankers :

Ø  Bank of Baroda

Ø  Union Bank of India

 

 

Facilities :

 

Secured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

(1) Open Market Bonds (OMB) (Amount repayable within one year 1024.200 Millions, Previous Year 931.100 Millions)

1024.200

1955.300

(2) Life Insurance Corporation of India (LIC) (Amount repayable within one year 205.100 Millions, Previous Year 247.000 Millions)

759.060

1006.100

(3) Rural Electrification Corporation Limited (REC) (Amount repayable within one year 1869.700 Millions, Previous Year 844.100 Millions)

29650.230

22690.189

(4) Power Finance Corporation Limited (PFC) (Amount repayable within one year 1314.500 Millions, Previous Year 1962.800 Millions)

16967.008

9500.393

(5) Loan from IFC

2446.000

0.000

(6) Loan from Bank - Union Bank of India

789.315

0.000

(7) Loan from Bank - Bank of Baroda

247.189

0.000

(8) Loan from Bank - Bank of Maharashtra

700.581

0.000

(9) Loan from Japan Int Co-op Agency (JICA) (Amount repayable within one year Nil)

5812.827

3400.534

Total

58396.410

38552.516

 

 

Unsecured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

Loans from Commercial Banks (Bank of Maharashtra / Union Bank) (Amount repayable within one year 1000.000 Millions Previous Year 1070.000 Millions)

1000.000

1070.000

Loan from a KEC International (Amount repayable within one year Rs. Nil (Nil)

41.164

41.164

Total

1041.164

1111.164

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Shah and Taparia

Chartered Accountants

 

 

Joint Venture :

Jaigad Power Transco Limited (JPTL)

 

 

CAPITAL STRUCTURE

 

AS ON 31.12.2012

 

Authorised Capital : Rs. 50000.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs. 0.500 Million

 

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50,000

Equity Shares

Rs. 10/- each

Rs. 0.500 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50,000

Equity Shares

Rs. 10/- each

Rs. 0.500 Million

 

 

 

 

 

Note: All the above shares are held by nominees on behalf of Government of Maharashtra pending transfer of same to MSEB Holding Company Limited pursuant to transfer scheme


 

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

0.500

0.500

0.500

2] Share Application Money

0.000

0.000

0.000

3] Share capital suspense A/c

26959.920

26959.920

26959.920

4] Reserves & Surplus

7148.946

3855.534

1405.399

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

34109.366

30815.954

28365.819

LOAN FUNDS

 

 

 

1] Secured Loans

58396.410

38552.516

28054.258

2] Unsecured Loans

1041.164

1111.164

41.163

TOTAL BORROWING

59437.574

39663.680

28095.421

DEFERRED TAX LIABILITIES

8042.166

7170.461

6580.246

 

 

 

 

TOTAL

101589.106

77650.095

63041.486

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

77464.853

57002.841

48314.677

Capital work-in-progress

36839.852

30951.421

18558.898

 

 

 

 

INVESTMENT

302.701

152.177

152.176

ASSETS NOT IN USE

391.648

127.901

50.587

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

2137.092

1989.992

2319.307

 

Sundry Debtors

2791.207

1338.986

1693.590

 

Cash & Bank Balances

3642.490

3590.779

5176.878

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

3691.719

6900.846

8421.085

Total Current Assets

12262.508

13820.603

17610.860

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

8682.246

9606.507

7639.541

 

Other Current Liabilities

11871.433

9948.563

9029.387

 

Provisions

5124.234

4849.778

4976.784

Total Current Liabilities

25677.913

24404.848

21645.712

Net Current Assets

(13415.405)

(10584.245)

(4034.852)

 

 

 

 

MISCELLANEOUS EXPENSES

5.457

0.000

0.000

 

 

 

 

TOTAL

101589.106

77650.095

63041.486

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

20977.770

15997.316

18699.459

 

 

Other Income

504.526

1083.675

673.683

 

 

TOTAL                                     (A)

21482.296

17080.991

19373.142

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Operating expenses

2877.702

3043.315

3935.333

 

 

Employee costs

5290.354

3939.736

6035.825

 

 

Administration Expenses

1366.792

1034.432

1432.239

 

 

TOTAL                                     (B)

9534.848

8017.483

11403.397

 

 

 

 

 

Less

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

11947.448

9063.805

7969.745

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

2829.963

2099.865

2561.450

 

 

 

 

 

 

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

9117.485

6963.643

5408.295

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3686.358

2996.155

3217.488

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

5431.127

3967.488

2190.807

 

 

 

 

 

Less

TAX                                                                  (H)

1908.464

1230.215

790.141

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

3522.663

2737.273

1400.666

 

 

 

 

 

 

SHORT PROVISION FOR EARLIER YEAR’S TAX

0.000

0.000

(8.225)

 

 

 

 

 

 

PRIOR PERIOD CHARGES (NET)

(229.251)

(287.138)

(17.305)

 

 

 

 

 

 

PROFIT FOR THE YEAR

3293.412

2450.135

1375.135

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2163.434

93.899

6146.469

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

0.000

7103.805

 

 

Transferred to Deferred Tax Liabilities

0.000

0.000

0.000

 

 

Contribution to Special Reserves

0.000

135.200

93.700

 

 

Contribution to Contingency Reserves

265.500

245.400

230.200

 

BALANCE CARRIED TO THE B/S

5191.346

2163.434

93.899

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

17.258

4.562

0.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

65868

49003

27503

 

Diluted

1.22

0.91

0.51

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

16.40
16.03

7.23

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

25.89
24.80

11.72

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.06
5.60

11.72

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.16
0.13

0.11

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.50
2.08

1.75

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

0.48
0.57

0.81

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2011

 

31.03.2010

 

31.03.2009

 

(Rs. In Millions)

For Capital Expenditure

 

 

 

Due to Micro, Small and Medium Enterprises

 

 

 

Due to Others

4307.808

4080.459

3014.624

For other than capital Expenditure

 

 

 

Due to Micro, Small and Medium Enterprises

 

 

 

Due to Others

4374.438

5526.048

4624.917

Total

8682.246

9606.507

7639.541

 

 

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

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

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

No

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

No

33]

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

No

34]

External Agency Rating, if available

No

 

 

BACKGROUND:

 

Maharashtra State Electricity Transmission Company Limited (MSETCL) was incorporated under the Companies Act, 1956 on 31 May, 2005. The Certificate of Commencement of Business was received on 15 September, 2005 from the Registrar of Companies. The Company was incorporated as per provisions of the notification of Maharashtra State Electricity Reforms Transfer Scheme, 2005 (hereinafter referred to as the Transfer Scheme) which was issued on 4 June, 2005. As per the aforesaid notification, assets and liabilities forming part of the Transmission Undertaking of erstwhile Maharashtra State Electricity Board as set out in ‘Schedule A’ of the said Notification were transferred and vested to the company with effect from 6 June, 2005. The transfer of Assets and Liabilities under the above Transfer Scheme was made by the Government of Maharashtra. The consideration for the transfer of undertaking being excess of assets over liabilities will be discharged by issue of Equity Shares of Rs. 26959.920 Millions to MSEB Holding Company Limited.

 

The assets and liabilities of the company as on June 06, 2005 contain balances, which are transferred under the Maharashtra Electricity Reforms Transfer Scheme, 2005 (Transfer Scheme). Accordingly, these balances are approved by MSEB Holding Company Limited. The Final Transfer Scheme is yet to be notified by the Government of Maharashtra, which may have an impact on the financial statements of the Company.

 

 

FINANCIAL HIGHLIGHT:

 

During the FY 2010-11, the revenue increased by 26% to 21480.000 Millions from 17080.000 Millions over the previous FY 2009-10. This increase is due to increase in tariff from 1242.700 Millions per month to 1886.900 Millions per month w.e.f. September 2010 vide MERC order dated September 10, 2010. In addition to this there is a decrease in other income by 580.000 Millions from 1080.000 Millions to 500.000 Millions. Profit before Tax for the year 2010-11 is placed at 5430.000 Millions as against 3970.000 Millions during the-previous FY 2009-10. Profit after Tax for FY 2010-11 is placed at 3290.000 Millions as against 2450.000 Millions during the previous FY 2009-10.

 

 

JOINT VENTURE:

 

Jaigad Power Transco Limited (JPTL), a joint venture between JSW Energy and Mahatransco has commissioned its 400 KV Intra state Power Transmission project in Maharashtra.

 

The transmission system has power evacuation capacity of about 2,500 MW to 3,000 MW.

 

The project was set up in two phases -Jaigad New Koyna Transmission line having route length of 55 kms and circuit length of 110 kms was completed last year while the Jaigad-Karad Transmission line with route length of 110 kms and circuit length of 220 kms has recently been completed.

 

The Joint Venture is a unique example of Public Private Partnership in transmission business where JSW Energy holds 74% and MSETCL holds 26% equity and it’s a pioneering effort by both JSW Energy and MSETCL to facilitate power evacuation from the upcoming power projects in Maharashtra. MSETCL becomes the first state transmission utility (STU) in India to promote this participative approach for development of power transmission system.

 

The 400kV Jaigad -New Koyna transmission line was completed in a record duration of less than 24 months and 400 kV Double Circuit (Quad) Jaigad-Karad Transmission line was completed in less than 39 months.

 

Both the transmission lines are presently transmitting at 1200 MW Jaigad Thermal Power Plant to Maharashtra Grid and with the commissioning of the Intra-state Transmission system, the region gets integrated with the EHV transmission system of Maharashtra, augmenting transfer of power between New Koyna, a generation node and Karad, a load centre.

 

 

FIXED ASSETS

 

Ø  Land

Ø  Leasehold Land

Ø  Buildings

Ø  Hydraulic Works

Ø  Other Civil Works

Ø  Railway Sidings

Ø  Roads and Others

Ø  Plant and Machinery and Equipments

Ø  Lines and Cable Network

Ø  Vehicles

Ø  Furniture and Fixtures

Ø  Office Equipments

Ø  Software Development Expenses

 

 



 

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 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 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. 54.84

UK Pound

1

Rs. 89.11

Euro

1

Rs. 72.47

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

77

 

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.