MIRA INFORM REPORT

 

 

Report Date :

21.12.2012

 

IDENTIFICATION DETAILS

 

Name :

SHARDA WORLDWIDE EXPORTS PRIVATE LIMITED

 

 

Registered Office :

Domnic Holm, 29th Road, Bandra (West), Mumbai – 400 050, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

12.03.2004

 

 

Com. Reg. No.:

11-145007

 

 

Capital Investment / Paid-up Capital :

Rs.180.441 millions

 

 

CIN No.:

[Company Identification No.]

U51909MH2004PTC145007

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS36859E

 

 

PAN No.:

[Permanent Account No.]

AAICS0137P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in exports of Agro chemicals - technical grade and formulations.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 7623000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record. The management of the company has not filed its latest financials i.e. 2011-12 with the Government Department. From the available financials i.e. 2011 it seems that the company is progressing well.

 

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 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

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

A1 (Short Term Bank Loan)

Rating Explanation

Very strong degree of safety it carry lowest credit risk.

Date

24.01.2012

 

 

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 :

Mr. Shilpesh

Designation :

Finance Manager

Contact No.:

91-22-66782800

Date :

20.12.2012

 

 

LOCATIONS

 

RegisteredOffice/ Corporate Office :

Domnic Holm, 29th Road, Bandra (West), Mumbai – 400 050, Maharashtra, India

Tel. No.:

91-22-66782800

Fax No.:

91-22-66782828/ 66782808

E-Mail :

shardain@vsnl.com

Exports - export@shardaintl.com

Imports - purchase@shardaintl.com

Registration - regn@shardaintl.com

HR - hr@shardaintl.com

accounts@sharaintl.com

Website :

http://www.shardaintl.com

Location :

Owned

 

 

DIRECTORS

 

As on 28.09.2012

 

Name :

Mr. Ramprakash Vilasrai Bubna

Designation :

Chairman and Managing Director

Address :

501, Pleasant Park, 5th Floor, 24th Road, Bandra (West), Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

20.07.1946

Qualification :

B. Tech., Chemical Engineering

Date of Appointment :

12.03.2004

DIN No.:

00136568

 

 

Name :

Mrs. Sharda Ramprakash Bubna

Designation :

Director

Address :

501, Pleasant Park, 5th Floor, 24th Road, Bandra (West), Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

04.05.1953

Date of Appointment :

12.03.2004

DIN No.:

00136760

 

 

Name :

Mr. Ashish Ramprakash Bubna

Designation :

Director

Address :

501, Pleasant Park, 5th Floor, 24th Road, Bandra (West), Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

09.10.1972

Qualification :

B. Com

Date of Appointment :

12.03.2004

DIN No.:

00945147

 

 

Name :

Mr. Manish Ramprakash Bubna

Designation :

Director

Address :

501, Pleasant Park, 5th Floor, 24th Road, Bandra (West), Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

30.06.1974

Qualification :

B. Tech., Chemical Engineering

Date of Appointment :

12.03.2004

DIN No.:

00137394

 

 

Name :

Mrs. Seema Ashish Bubna

Designation :

Director

Address :

501, Pleasant Park, 5th Floor, 24th Road, Bandra (West), Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

21.11.1974

Date of Appointment :

14.03.2008

DIN No.:

00592696

 

 

Name :

Mr. Vishal Kirti Keshav Marwaha

Designation :

Nominee Director

Address :

C-5/25, Vasant Kunj, New Delhi – 110 070, India

Date of Birth/Age :

26.11.1963

Date of Appointment :

14.03.2008

DIN No.:

00164204

 

 

Name :

Mr. Swaminathan Sundararajan Mittur

Designation :

Director

Address :

Flat 11, 248, Aswarooda, T.T.K. Salai, Alwarpet, Chennai – 600 004, Tamilnadu, India

Date of Birth/Age :

15.03.1950

Date of Appointment :

26.07.2011

DIN No.:

00169775

 

 

Name :

Mrs. Urvashi Saxena

Designation :

Director

Address :

2602, Light Bridge, Hiranandani Meadows, Gladys Alwares Road, Thane (West) – 400 610, Maharashtra, India

Date of Birth/Age :

14.06.1945

Date of Appointment :

26.07.2011

DIN No.:

02021303

 

 

Name :

Mr. Daniel Alexander Karl Porat

Designation :

Director

Address :

23, Be’eri Street, Tel Aviv, 6423207, Israel

Date of Birth/Age :

23.01.1951

Date of Appointment :

24.10.2011

DIN No.:

05154812

 

 

KEY EXECUTIVES

 

Name :

Ms. Jetkin N. Gudhka

Designation :

Secretary

Address :

E-2, Juhu Apartment, Juhu Road, Santacruz (West), Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

13.07.1987

Date of Appointment :

23.02.2011

PAN No.:

ALEPG6017E

 

 

Name :

Mr. Gautam Arora

Designation :

Chief Financial Officer

Date of Birth/Age :

43 Years

Qualification :

B. Com, ACA.

Date of Appointment :

12.04.2010

 

 

Name :

Mr. Shilpesh

Designation :

Finance Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 28.09.2012

 

Names of Shareholders

 

No. of Shares

 

Ramprakash Vilasrai Bubna

 

18270000

Sharda Ramprakash Bubna

 

18270000

Ashish Ramprakash Bubna

 

15180000

Manish Ramprakash Bubna

 

15180000

Anisha M. Bubna jointly with Manish Ramprakash Bubna

 

4500000

Seema Ashish Bubna jointly with Ashish Ramprakash Bubna

 

4500000

HEP Mauritius Limited, Mauritius

 

14320495

Total

 

90220495

 

As on 28.09.2012

 

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]

 

15.87

Directors or relatives of directors

 

84.13

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in exports of Agro chemicals - technical grade and formulations.

 

 

Products :

Agrochemical : Insecticides, Herbicides and Fungicides

Belt : Conveyor Belts, V Belts and Timing Belts

Other : Dyes and Dye Intermediates, General Chemical and Steel Chains

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

v  Union Bank of India, Overseas Branch, Union Bank Bhavan, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India

v  Standard Chartered Bank, 90, M.G. Road, Fort, Mumbai – 400 001, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2011

(Rs. in Millions)

31.03.2010

(Rs. in Millions)

Working capital loans banks secured

4.785

4.484

Working capital loans others secured

0.000

10.782

Total

4.785

15.266

 

Note:

Short Terms Borrowings are secured against hypothecation of stocks meant for export and book debts. These loans are further secured by personal guarantees of all the directors and by a lien on fixed deposits placed by two directors with the bank.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.R. Batliboi and Company

Chartered Accountants

Address :

14th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (West), Mumbai – 400 028, Maharashtra, India

Tel. No.:

91-22-40356300

Fax No.:

91-22-40356400

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

AALFS0506L

 

 

Wholly Owned Subsidiary Companies (WOS) :

v  Sharda International FZE, United Arab Emirates

v  Sharda Polska sp Z.O.O, Poland

v  Sharda Ukraine LLC, Ukraine

v  Sharda Del Ecuardor CIA Ltda, Ecuador

v  Sharda Peru SAC, Peru

 

 

Enterprises owned or significantly influenced by KMP or their relatives :

v  Sharda Exports Private Limited

v  Blossoms Properties Private Limited

v  Palmspring Estates Private Limited

 

 

CAPITAL STRUCTURE

 

As on 28.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

105000000

Equity Shares

Rs.10/- each

Rs.1050.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

90220495

Equity Shares

Rs.10/- each

Rs.902.205 millions

 

 

 

 

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

20000000

Equity Shares

Rs.10/- each

Rs.200.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

18044099

Equity Shares

Rs.10/- each

Rs.180.441 millions

 

 

 

 

 

Note:

Of the above, 13800000 Equity Shares of Rs.10/- each were allotted as Bonus Shares by capitalization of surplus in Profit and Loss Account.

 

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

180.441

180.441

180.441

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1725.384

1525.649

1478.996

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1905.825

1706.090

1659.437

LOAN FUNDS

 

 

 

1] Secured Loans

4.785

15.266

79.514

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

4.785

15.266

79.514

DEFERRED TAX LIABILITIES

0.000

6.727

0.000

 

 

 

 

TOTAL

1910.610

1728.083

1738.951

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

867.224

1019.178

263.201

Capital work-in-progress

315.777

161.117

269.807

 

 

 

 

INVESTMENT

268.123

185.654

386.085

DEFERRED TAX ASSETS

11.480

0.000

3.928

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
477.058

332.169

149.872

 

Sundry Debtors
1570.532

1367.485

1366.153

 

Cash & Bank Balances
71.467

88.223

110.552

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
10.271

22.354

13.582

Total Current Assets
2129.328

1810.231

1640.159

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

1453.057

1232.358

639.308

 

Other Current Liabilities
210.391

214.339

153.492

 

Provisions
17.874

1.400

31.429

Total Current Liabilities
1681.322

1448.097

824.229

Net Current Assets
448.006

362.134

815.930

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1910.610

1728.083

1738.951

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

2474.252

1964.534

2634.946

 

 

Other Income

 

 

 

 

 

TOTAL                                    

2474.252

1964.534

2634.946

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Office Expenses

1848.506

1622.708

2137.063

 

 

Administrative Expenses

 

 

 

 

 

Advertising Expenses

 

 

 

 

 

TOTAL                                    

1848.506

1622.708

2137.063

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

625.746

341.826

497.883

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

326.113

250.762

67.896

 

 

 

 

 

 

PROFIT BEFORE TAX

299.633

91.064

429.987

 

 

 

 

 

Less

TAX                                                                 

96.650

31.505

136.593

 

 

 

 

 

 

PROFIT AFTER TAX

202.983

59.559

293.394

 

 

 

 

 

Less

Prior period adjustments

(3.249)

(12.904)

7.180

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

589.032

542.377

241.803

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

788.766

589.032

542.377

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods on F.O.B. basis

2434.380

1934.335

2401.103

 

 

Dividend

0.000

0.000

4.737

 

 

Interest

0.000

0.000

3.867

 

TOTAL EARNINGS

2434.380

1934.335

2409.707

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Traded Goods

1731.736

1430.992

1749.771

 

TOTAL IMPORTS

1731.736

1430.992

1749.771

 

 

 

 

 

 

Earnings Per Share (Rs.)

11.07

2.59

16.77

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
8.20

3.03

11.13

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
10.00

3.22

22.59

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.16

0.05

0.26

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.88

0.86

0.54

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.27

1.25

1.99

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

Sundry Creditors

 

 

 

- Creditors due small micro enterprises

0.000

0.000

0.000

- Creditors due others

1453.057

1232.358

639.308

Total

1453.057

1232.358

639.308

 

 

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

Yes

 

 


NATURE OF OPERATIONS:

 

Subject is a company engaged in exports of Agro chemicals - technical grade and formulations - to various countries around the world. The company also exports Conveyor belts, Rubber belts/sheet, Dyes and Dye intermediates and other products worldwide.

 

OPERATIONAL PERFORMANCE AND FUTURE OUTLOOK:

 

The Company continued to maintain profitable growth in the financial year ended 31st March, 2011.

 

The Company’s total revenue increased by 26% over the previous year from Rs.1964.534 millions in FY 2009-10 to Rs.2474.252 millions in FY 2010-11 partially due to increase in Agrochemicals business volumes. Sales in European continent increased by 41.81% and in Latin America by 83%. The net profit after tax and prior period adjustment increased from Rs.46.655 millions in FY 2009-10 to Rs.199.734 millions in FY 2010-11. Increase in profits is mainly due to better inventory management, control on fixed costs and lower borrowings. However, increase in Personnel Expenses and higher depreciation partially offset the savings in overall costs. The Company achieved 114 new registrations during the current financial year and the number of customers also increased by 168 during the current financial year.

 

The Company has continued its thrust on investments in registration of products in developed countries as well as other countries where agriculture is the backbone of the economy. This is due to the company’s strong belief that the future of agrochemical business is in obtaining early registration of products, so that the company is ready to tap the business when the markets improve

 

SHARE CAPITAL:

 

During FY 2010-11, there was no change in the Share Capital of the Company. However, Company has allotted 72176396 Bonus Shares to the existing shareholders in the ratio 4:1 on 9th June, 2011.

 

SUBSIDIARIES:

 

Following are the overseas subsidiaries of the company:

 

i. Sharda International FZE

ii. Sharda Polska Sp. Zo. O.

iii. Sharda Ukraine LLC

iv. Sharda Del Ecuador CIA Ltda.

v. Sharda Peru SAC

 

The performance of Sharda International FZE has been satisfactory during the financial year 2010-2011. Other four subsidiaries are not involved in any operational activity and hold product registration in respective countries. There were no significant transactions in this other four subsidiaries.

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

i) Guarantees given by the Company's Bankers in respect of loan taken by Subsidiary company - Sharda International FZE

88.880

362.960

ii) Open Letters of Credit

756.037

710.818

iii) Disputed Income tax

 

 

A.Y. 2005-06

3.922

--

A.Y. 2008-09

--

2.068

A.Y. 2009-10

--

2.505

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U51909MH2004PTC145007

Name of the company

SHARDA WORLDWIDE EXPORTS PRIVATE LIMITED

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

Domnic Holm, 29th Road, Bandra (West), Mumbai – 400 050, Maharashtra, India

E-Mail: shardain@vsnl.com

This form is for

Creation of charge

Type of charge

Others (Letter of Hypothecation of Bills)

Particular of charge holder

Union Bank of India, Overseas Branch, Union Bank Bhavan, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India

E-Mail: overseasmumbai@unionbankofindia.com

Nature of description of the instrument creating or modifying the charge

Letter of Hypothecation of Bills

Date of instrument Creating the charge

12.12.2011

Amount secured by the charge

Rs.50.000 millions

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

Rate of Interest:

Union Bank of India's Base Rate + 1.50% or such other rates as may be prescribed by the Bank from time to time with a minimum of 12.25% p.a. with monthly rests for value received.

 

Terms of Repayment:

On Demand

 

Margin:

As per sanction terms

 

Extent and Operation of the charge:

To secure Bill or Bills of Exchange upto Rs.50.000 millions granted by the Union Bank of India to the Company.

Short particulars of the property charged

That the Hypothecation of Export Bills covered by the Letter of Hypothecation of Bills shall be the security for the Bank for the Bills of Exchange for Rs.50.000 millions granted by the UBI to the Company

 

FIXED ASSETS:

 

Tangible Assets

v  Office Equipment

v  Furniture and Fixtures

v  Motor Car

v  Computer

Intangible Assets

v  Computer Software

v  Products Registration

 

 

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 :

SVA

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--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

 

50

 

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.