MIRA
INFORM REPORT
|
Report Date : |
06.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
VARUN INDUSTRIES LIMITED (w.e.f. April, 2005) |
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Formerly Known
As : |
VARUN CONTINENTAL LIMITED |
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Registered
Office : |
13, Shankheshwar Darshan Co-Operative Society Limited, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
08.03.1996 |
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Com. Reg. No.: |
11-097945 |
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Paid Up Capital
: |
Rs.291.139 millions |
|
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|
|
CIN No.: [Company Identification
No.] |
L28990MH1996PLC097945 |
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|
TAN No.: [Tax Deduction & Collection
Account No.] |
MUMV05062B |
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PAN No.: [Permanent Account No.] |
AAACV3069F |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
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Line of Business
: |
Manufacturer of Stainless Steel, House-ware, Steel-ware Products,
Lifestyle Products. |
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No. of Employees
: |
200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 18464916 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having fine track records. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good 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.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered/ Corporate Office : |
13, Shankheshwar Darshan Co-Operative Society Limited, A.G.
Pawar Cross Lane, Byculla (East), Mumbai – 400 027, |
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Tel. No.: |
91-22-23727400 |
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Fax No.: |
91-22-23748686 |
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E-Mail : |
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Website : |
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Area : |
3500 sq ft (Approximately) |
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Location : |
Owned |
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Factory 1 : |
Houseware
Manufacturing Plant, Vasai S. No. 14/3,
Village Waliv, Vasai – Vajreshwari Road, Taluka Vasai, Vasai (East), District
Thane – 401 208, Maharashtra, India |
|
Tel. No.: |
91-250-2451782/ 2453432 |
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Fax No.: |
91-250-2451781/ 2453434 |
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Factory 2 : |
Stainless Steel
Sheet Re-rolling Mill, E-371, Marudhar
Industrial Estate, Phase II, Basni, |
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Tel. No.: |
91-291-2746622/ 33 |
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Fax No.: |
91-291-2746644 |
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Wind Power Sites
: |
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34, Royal Park Apartments, Flat No.12, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Kiran N. Mehta |
|
Designation : |
Founder, Chairman and Managing Director |
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Qualification : |
B.Com |
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Name : |
Mr. Kailash S. Agarwal |
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Designation : |
Co – Founder and Managing
Director |
|
Qualification : |
B.Com |
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Name : |
Mr. Varun K. Mehta |
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Designation : |
Whole Time Director |
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Qualification : |
Post Graduate |
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Name : |
Mr. S. Rajagopal |
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Designation : |
Director |
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Name : |
Mr. S.K. Srivastav |
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Designation : |
Director |
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Name : |
Mr. K.L. Gopalakrishna |
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Designation : |
Director |
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Audit Committee : |
Mr. S. Rajagopal, Chairman Mr. D. K. Mukhopadhyay Mr. S. K. Srivastav Mr. K.L. Gopalakrishna Mr. Kiran N. Mehta |
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Shareholders’/Investors’
Grievances Committee : |
Mr. S. K. Srivastav, Chairman Mr. S. Rajagopal Mr. D. K. Mukhopadhyay |
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Remuneration
Committee : |
Mr. D. K. Mukhopadhyay,
Chairman Mr. S. Rajagopal Mr. S. K. Srivastav |
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Committee of
Directors : |
Mr. Kiran N. Mehta, Chairman Mr. Kailash S. Agarwal |
KEY EXECUTIVES
|
Name : |
Mr. Kiran N. Bade |
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Designation : |
Vice President (Legal) and
Company Secretary |
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Qualification: |
B.com |
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Name : |
Mr. Rathnakar Hegde |
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Designation : |
Group Advisor |
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Name : |
Mr. Mayur Doshi |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Rodney Semotiuk |
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Designation : |
Chief Executive Officer
(Global Operations) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholder |
|
No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
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|
18920569 |
64.99 |
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(B) Public
Shareholding |
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|
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|
213393 |
0.73 |
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2071802 |
7.12 |
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|
4794023 |
16.47 |
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|
1337755 |
1.59 |
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|
1642386 |
5.64 |
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|
94023 |
0.32 |
|
|
39894 |
0.14 |
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|
100 |
-- |
|
|
|
|
|
Total |
29113945 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Stainless Steel, House-ware, Steel-ware Products,
Lifestyle Products. |
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Products : |
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Exports : |
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Products : |
Stainless Steel, House-ware, Steel-ware Products, Lifestyle Products. |
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Countries : |
·
Germany ·
United Kingdom ·
Korea |
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Imports : |
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Products : |
Raw Material |
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Countries : |
·
China ·
European Countries ·
Korea |
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Terms : |
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Selling : |
L/C and Cash |
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Purchasing : |
L/C and Cash |
GENERAL INFORMATION
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Customers : |
Manufacturers |
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No. of Employees : |
200 (Approximately) |
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Bankers : |
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Facilities : |
Notes i) Term Loan from bank for Vasai Plant is secured by way of first charge on Equitable Mortgage of Land & Building, Hypothecation of Plant & Machinery purchased by availing such term loan and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. The Term Loan is further secured by second Pari Passu charge on the current assets of the Company. ii) Term Loan from bank for Jodhpur Plant is secured by way of first charge on Equitable Mortgage of Land & Building, Hypothecation of Plant & Machinery purchased by availing such term loan and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. The Term Loan is further secured by second Pari Passu charge on the current assets of the Company. iii) Term Loans from bank for Wind Power Projects are secured by way of exclusive charge on the Fixed Assets of the Wind Power Projects, Fixed Deposits under lien with bank and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. iv) Term Loans from bank for Oil Rig is secured by way of exclusive charge on the Fixed Assets of the Oil Rig and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. v) Export Packing Credit and FDBP Credit Limits are secured by first charge/hypothecation of Stock/inventory, receivables including export receivables and advances to suppliers of the Company as well as on immovable properties (shops & flats) owned by its directors, Fixed Deposits under lien with bank, second Pari Passu charge on Land & Building, Plant & Machinery of Vasai Plant and Jodhpur Plant, first Pari Passu charge on the property at Byculla and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. vi) Cash Credit Limits of the Company are secured by first charge/hypothecation of Stock/inventory, receivables including export receivables and advances to suppliers of the Company as well as on immovable properties (shops & flats) owned by its directors, Fixed Deposits under lien with bank, second Pari Passu charge on Land & Building, Plant & Machinery of Vasai Plant and Jodhpur Plant, first Pari Passu charge on the property at Byculla and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. vii) Short Term Loan is secured by Fixed Deposits under lien with bank and personal guarantees of Shri Kiran N. Mehta and Shri Kailash S. Agarwal. viii) Vehicle Loans are secured by way of hypothecation of
the respective vehicles. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Chunnilal and Company Chartered Accountants |
|
Address : |
Mumbai |
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Subsidiaries : |
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Step Down Subsidiary Companies : |
· Varun International Trading FZE, UAE · Varun Global Trading Pte. Ltd., Singapore · Varun Petroleum SARL, Madagascar · Oil and Gas Incorporation SARL, Madagascar · Varun International SARL, Madagascar · Madagascar Energy Corporation SARL, Madagascar ·
Varun Energy Corporation SARL, Madagascar |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 millions |
|
|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,91,13,945 |
Equity Shares |
Rs.10/- each |
Rs.291.139
millions |
|
|
|
|
|
Of the above:
(i) 15,96,100 Equity shares have been issued as fully paid up for consideration other than cash
(ii) 1,14,73,700 Equity shares have been issued as fully paid up Bonus Shares by capitalisation of General Reserve
(iii) 70,00,000 Equity shares have been issued on excercise of warrants
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 |
291.139 |
221.139 |
221.139 |
|
|
2] Equity Share Warrants |
0.000 |
75.600 |
0.000 |
|
|
3] Reserves & Surplus |
4325.090 |
3828.494 |
3577.896 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4616.229 |
4125.233 |
3799.035 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9067.742 |
7418.508 |
5944.671 |
|
|
2] Unsecured Loans |
252.837 |
881.298 |
776.587 |
|
|
TOTAL BORROWING |
9320.579 |
8299.806 |
6721.258 |
|
|
DEFERRED TAX LIABILITIES |
117.909 |
96.584 |
97.019 |
|
|
|
|
|
|
|
|
TOTAL |
14054.717 |
12521.623 |
10617.312 |
|
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|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
3904.683 |
3853.381 |
3150.599 |
|
|
Capital work-in-progress |
51.666 |
33.998 |
493.189 |
|
|
|
|
|
|
|
|
INVESTMENT |
108.677 |
74.264 |
73.225 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1075.294
|
999.275 |
1012.683 |
|
|
Sundry Debtors |
12874.219
|
6819.271 |
4480.534 |
|
|
Cash & Bank Balances |
3402.875
|
609.239 |
536.284 |
|
|
Other Current Assets |
103.878
|
99.964 |
111.639 |
|
|
Loans & Advances |
286.283
|
1533.711 |
1063.999 |
|
Total
Current Assets |
17742.549
|
10061.460 |
7205.139 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
7653.473
|
1435.642 |
258.266 |
|
|
Other Current Liabilities |
77.232
|
53.381 |
42.544 |
|
|
Provisions |
22.153
|
12.457 |
4.030 |
|
Total
Current Liabilities |
7752.858
|
1501.480 |
304.840 |
|
|
Net Current Assets |
9989.691
|
8559.980 |
6900.299 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
14054.717 |
12521.623 |
10617.312 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operations |
29412.940 |
15594.300 |
12204.286 |
|
|
|
Other Income |
0.000 |
(182.580) |
(271.585) |
|
|
|
TOTAL (A) |
29412.940 |
15411.720 |
11932.701 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Good Sold |
27431.677 |
13650.801 |
10569.442 |
|
|
|
Personnel Cost |
160.418 |
134.179 |
105.720 |
|
|
|
Administrative & Other Expenses |
172.864 |
165.220 |
161.867 |
|
|
|
Selling & Distribution Expenses |
91.240 |
110.151 |
233.415 |
|
|
|
TOTAL (B) |
27856.199 |
14060.351 |
11070.444 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1556.741 |
1351.369 |
862.257 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
912.063 |
808.561 |
551.102 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
644.678 |
542.808 |
311.155 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
190.545 |
184.480 |
110.488 |
|
|
|
|
|
|
|
|
|
Add |
Other Income |
141.437 |
-- |
--- |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
595.570 |
358.328 |
200.667 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
202.164 |
120.155 |
72.472 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
393.406 |
238.173 |
128.195 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
645.321 |
457.737 |
483.609 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
52.405 |
33.171 |
22.114 |
|
|
|
Provision for Tax on Dividend |
8.502 |
5.509 |
3.758 |
|
|
|
Transfer to General Reserve |
29.505 |
11.909 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
948.315 |
645.321 |
457.737 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.21 |
10.77 |
5.80 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
9236.690 |
9036.030 |
|
Total Expenditure |
|
8807.030 |
8552.880 |
|
PBIDT (Excl OI) |
|
429.660 |
483.150 |
|
Other Income |
|
48.550 |
57.590 |
|
Operating Profit |
|
478.210 |
550.740 |
|
Interest |
|
189.940 |
257.610 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
288.270 |
293.130 |
|
Depreciation |
|
44.020 |
44.590 |
|
Profit Before Tax |
|
244.250 |
248.540 |
|
Tax |
|
59.150 |
94.440 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
185.100 |
154.090 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
185.100 |
154.090 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.33
|
1.55 |
1.07 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.02
|
2.30 |
1.64 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.75
|
2.58 |
1.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.09 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.69
|
2.38 |
1.85 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.28
|
6.70 |
23.64 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter's background |
-- |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last two years |
Yes |
|
12) Profitability for last three years |
No |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
Yes |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
-- |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if
applicable) |
Yes |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
-- |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
No |
|
28) Incorporation details, if applicable |
-- |
|
29) Last accounts filed at ROC |
-- |
|
30) Major Shareholders, if available |
-- |
PERFORMANCE REVIEW
The global
economy, with the exception of a few European countries, is on the path of
recovery. The GDP growth rate of their country continues to accelerate and is
likely to exceed 8%. Most of the macro economic indicators, barring
manufacturing activity, recorded improved performance during the financial
year.
With
normal monsoon in the offing, the domestic business environment is expected to
show improvement. Inflation and consequent hike in interest rates however,
continue to be the causes of concern. Varun Industries Limited achieved an
improved performance on account of better market conditions. Profit improved
substantially. Reduction in export incentives however, had an adverse impact on
export realization. During the year, the Company commenced trading activities
which fundamentally reflect high turnover and low margins.
During
the year, the Company recorded an income of Rs. 29554.300 millions, as against
Rs. 15411.700 millions in the previous
year, representing an increase of 92%. This paradigm change is due to the
result of trading activities undertaken by the Company during the year. The
profit before tax was higher by 66% at Rs. 595.600 millions as against Rs. 358.300 millions for
the previous year. The profit after tax at Rs. 393.400 millions was higher by
65%, as against Rs. 238.200 millions for the previous year..
MANAGEMENT DISCUSSION AND ANALYSIS
Performance Review
– People Powering Growth
They are glad to report another year of sterling performance, wherein
their team performed above par and achieved the highest ever turnover in the
history of their company. Their total income (see chart ) was up 92% from Rs
15411.700 millions to Rs. 29554.400 millions. in the year 2010-2011. Their PBT
also showed an increase of 66% increasing from Rs. 358.300 millions to Rs.
595.500 millions. Their PAT mean while increased by a factor of 65% from
238.200 millions. in the previous year to 393.400 millions. in the current
year. The earnings per share subsequently increased by 60% from ` 10.77 to `
17.21, whereas their net-worth increased by 12% from Rs. 4125.200 millions To
Rs. 4616.200 millions. In view of this sterling performance the management has
decided to increase the proposed dividend from ` 1.50 a share in the previous
year to ` 1.8 per share in the current year, an increase of 20%. This is an
overall record performance for Varun Industries.
Business
Description
Subject is a manufacturer and exporter of stainless steel cookware,
houseware, kitchenware and tableware. The Company conglomerate with several
associate companies and multidimensional business interests that include
energy-oil, natural gas, uranium and wind, mining, gems and jewelry, agro
products and trading. It has three segments: merchandise sale, petroleum and
wind power. Its projects include stainless steel kitchenware/houseware
manufacturing plant and warehouse project, power generation, iron ore mining,
oil and natural gas and uranium prospects. Its retail division has moved from
the concept of boutique stores to shop-in-shop and mall-in-mall. Its petroleum
division offers integrated services for all phases upstream, midstream and
downstream and also tailor made solutions in the field of oil, drilling and
work over services on outsourced or collaborative basis. For the fiscal year
ended 31 March 2010, Varun Industries Limited's revenues increased 37% to
RS20.04B. Net income increased 85% to RS248.3M. Revenues reflect an increase in
sales revenue and higher revenue from O&M services. Net profit also
reflects a decrease in selling & distribution expenses and higher gross
profit margin. Varun Industries Limited is engaged in manufacturing of
stainless steel cookware and other household utility items.
FIXED ASSETS:
·
·
·
Buildings
·
Plant and Machinery
·
Furniture, Fixtures and
Office Equipments
·
Computer
·
Vehicles
·
Oil Rig
·
Wind Power Project
.
NEWS AND UPDATES
VARUN GROUP IN JV
WITH CLUFF RESOURCES PACIFIC
Madagascar Energy Corporation SARL based in
Varun Mines and Minerals Limited based at
Cluff Resources Pacific NL, having its registered office in
In the above agreement the exploration, exploitation and marketing of the gold,
platinum and precious metals are covered. The exploration process has two
phases on completion of which the exploitation will begin. The agreement
is expected to result in substantial gain for Subject taking the Group to
new heights of value creation.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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] 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.48.96 |
|
|
1 |
Rs.77.46 |
|
Euro |
1 |
Rs.64.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.