MIRA
INFORM REPORT
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Report Date : |
08.02.2012 |
IDENTIFICATION DETAILS
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Name : |
GUJARAT FLOUROCHEMICALS LIMITED |
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Registered
Office : |
Survey No 16/3, 26 And 27 Ranjit Nagar, Ghoghamba Taluka, Panch Mahal,
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
04.02.1987 |
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Com. Reg. No.: |
009362 |
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Capital
Investment / Paid-up Capital : |
Rs.109.850 Millions |
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CIN No.: [Company Identification
No.] |
L24110GJ1987PLC009362 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BRDG01210G |
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PAN No.: [Permanent Account No.] |
AAACG6725H |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchanges |
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Line of Business
: |
Manufacturer of Chemicals |
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No. of
Employees: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (73) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 69888480 |
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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 a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are
strong and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular 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.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
INFORMATION PARTED BY (GENERAL INFORMATION)
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Name : |
Mr. Kaushal |
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Designation : |
Finance Manager |
LOCATIONS
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Registered
Office /Warehouse/Factory 1 : |
Survey No 16/3, 26 And 27 Ranjit Nagar, Ghoghamba Taluka, Panch Mahal,
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Tel. No.: |
91-2678-248153 |
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E-Mail : |
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Website : |
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Factory 2 : |
Dahej Project Plot No 12A, GIDC Dahej Industrial Estate, Taluka vagra District,
Bharuch, |
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Factory 3 : |
Wind Farm Project Village Gudhe, Panchgini, |
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Corporate Office : |
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Tel No.: |
91-265-6198111 |
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Marketing Office : |
Western Region INOX APL, A/2, TTC Industrial area, Off Thane Belapur Road, Pawane MIDC, Navi Mumbai – 400 710 |
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Tel. No.: |
91-22-3294 4123 |
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Fax No.: |
91-22-2767 2458 |
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Marketing Office : |
Southern Region 3C, III Floor, |
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Tel. No.: |
91-44-2819 2373 |
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Fax No.: |
91-44-2819 2374 |
DIRECTORS
As on 31.03.2011
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Name : |
Mr. Shailendre D Swarup |
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Designation : |
Director |
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Name : |
Mr. Vimal prakash Mittal |
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Designation : |
Director |
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Name : |
Mr. Pavan Kumar Jain |
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Designation : |
Director |
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Name : |
Mr. Vivek Jain |
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Designation : |
Managing Director |
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Name : |
Mr. Jitendra Singh Bedi |
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Designation : |
Director |
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Name : |
Mr. |
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Designation : |
Director |
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Name : |
Dr. S. Ramalyer |
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Designation : |
Director |
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Name : |
Mr. Shanti Prakash Jain |
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Designation : |
Director |
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Name : |
Mr. Dinesh Kumar Sachdeva |
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Designation : |
Director |
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Name : |
Mr. Deepak Asher |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Kaushal |
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Designation : |
Finance Manager |
MAJOR
SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of promoter
and Promoter Group |
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1) Indian |
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a) Individuals / Hindu Undivided Family |
170400 |
0.16 |
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b) Bodies corporate |
76756415 |
69.87 |
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2) Foreign |
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(B) Public Shareholdings |
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1) Institutions |
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a) Mutual Funds |
3829361 |
3.49 |
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b) Financial Institutions/Banks |
343150 |
0.31 |
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c) Central Government/ State Government(s) |
1000 |
-- |
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d) Foreign Institutional Investors |
2808911 |
2.56 |
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Any Others |
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Foreign Companies |
2000 |
-- |
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Overseas Corporate Bodies |
1232403 |
1.12 |
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2) Non – Institution |
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a) Bodies corporate |
9290539 |
8.46 |
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b) Individuals |
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i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
9150343 |
8.33 |
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ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
5160869 |
4.70 |
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c) Any other |
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i) Clearing Member |
313362 |
0.29 |
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ii) NRI – Repatriable |
765397 |
0.70 |
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iii) Trusts |
25850 |
0.02 |
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Total |
109850000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Chemicals |
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Products : |
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Exports : |
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Products : |
Chemicals |
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Countries : |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
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Terms : |
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Selling : |
Cash / Credit |
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Purchasing : |
Cash / Credit |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
2000 (In office 100 + In factory 1900) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Patankar and Associates Chartered Accountant |
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Holding Company : |
Inox Leasing and Finance Limited (w.e.f. 18th September 2008) |
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Subsidiaries : |
· Inox Leisure Limited · Inox Infrastructure Private Limited · Inox Motion Pictures Limited · Inox Wind Limited (Incorporated on 09th April 2009) · Gujarat Fluorochemicals Americas LLC, U.S.A. (GFL Americas LLC) (Incorporated on 08th September 2009) · Inox Renewables Limited (Incorporated on 11th November 2010) · Fame India Limited (Subsidiary of Inox Leisure Limited w.e.f. 06th January 2011) · Fame Motion Pictures Limited (formerly Shringar Films Limited) (Subsidiary of Fame India Limited) · Big Pictures Hospitality Services Private Limited (Subsidiary of Fame India Limited) |
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Joint Venture : |
Xuancheng HengYuan Chemical Technology Company Limited (XHCT Company Limited) |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs.1./- each |
Rs.200.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
109850000 |
Equity Shares |
Rs.1/- each |
Rs.109.850
Millions |
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(- Out of above 5,77,15,310 shares are held by the Holding Company - Inox Leasing and Finance Limited - 5930000 Shares bought back during the year 2008-09) |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
109.850 |
109.850 |
109.850 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
17362.270 |
15173.260 |
12198.432 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
17472.120 |
15283.110 |
12308.282 |
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LOAN FUNDS |
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1] Secured Loans |
4124.811 |
2805.829 |
5553.315 |
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2] Unsecured Loans |
1708.313 |
2572.915 |
1387.771 |
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TOTAL BORROWING |
5833.124 |
5378.744 |
6941.086 |
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DEFERRED TAX LIABILITIES |
1336.468 |
977.360 |
912.455 |
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TOTAL |
24641.712 |
21639.214 |
20161.823 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
12679.562 |
10648.930 |
7971.255 |
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Capital work-in-progress |
4013.084 |
599.230 |
1791.732 |
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Advances on Capital Account |
|
737.153 |
429.364 |
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INVESTMENT |
16692.646 |
7486.704 |
5057.285 |
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DEFERREX TAX ASSETS |
5708.446 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1805.130
|
1878.649
|
1922.111 |
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Sundry Debtors |
1755.906
|
927.629
|
1217.658 |
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Cash & Bank Balances |
187.639
|
755.825
|
2034.908 |
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Other Current Assets |
72.801
|
29.607
|
78.827 |
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Loans & Advances |
3014.364
|
2331.486
|
1553.957 |
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Total
Current Assets |
6835.840
|
5923.196
|
6807.461 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
1526.012
|
1272.355
|
1279.290 |
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Other Current Liabilities |
2673.453
|
2232.634
|
119.871 |
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Provisions |
395.755
|
251.010
|
496.113 |
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Total
Current Liabilities |
4595.220
|
3755.999
|
1895.274 |
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Net Current Assets |
2240.620
|
2167.197
|
4912.187 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
24641.712 |
21639.214 |
20161.823 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
|
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|
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|
10247.081 |
9863.450 |
10445.217 |
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Other Income |
1037.690 |
706.378 |
335.302 |
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TOTAL (A) |
11284.771 |
10569.828 |
10780.519 |
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Less |
EXPENSES |
|
|
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|
|
|
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Increased / (Decreased) in stock |
396.615 |
(91.016) |
(448.350) |
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|
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Material Consumed and Purchase of Goods |
2173.019 |
1848.048 |
1962.338 |
|
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Manufacturing and Other expenses |
3601.354 |
3059.951 |
3012.367 |
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Salaries and Benefits |
571.450 |
525.647 |
511.418 |
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Provision for diminution in value of investments (Net) |
6.075 |
155.984 |
26.809 |
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TOTAL (B) |
6748.513 |
5498.614 |
5064.582 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4536.258 |
5071.214 |
5715.937 |
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Less |
FINANCIAL
EXPENSES (D) |
345.464 |
480.333 |
499.997 |
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4190.794 |
4590.881 |
5215.940 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
675.898 |
570.307 |
471.844 |
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PROFIT BEFORE
TAX (E-F) (G) |
3514.896 |
4020.574 |
4744.096 |
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Less |
TAX (I) |
1021.108 |
679.905 |
1342.734 |
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PROFIT AFTER TAX
(G-I) (J) |
2493.788 |
3340.669 |
3401.362 |
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Add |
TAXATION PERTAINING
TO EARLIER YEARS |
1.493 |
0.866 |
0.000 |
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
29.274 |
16.919 |
8.055 |
|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Capital Redemption Reserve |
0.000 |
0.000 |
5.930 |
|
|
|
Dividend on shares bought back |
0.000 |
0.000 |
(0.488) |
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|
|
General Reserve |
2200.000 |
2880.000 |
2937.239 |
|
|
|
Interim Dividend |
109.850 |
219.700 |
0.000 |
|
|
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Proposed Dividend |
274.625 |
164.775 |
384.475 |
|
|
|
Tax on Dividend |
62.796 |
64.705 |
65.342 |
|
|
BALANCE CARRIED
TO THE B/S |
2647.271 |
29.274 |
16.919 |
|
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|
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|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
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Export Earnings |
6051.624 |
6534.203 |
1816.867 |
|
|
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Other recoveries on exports |
40.343 |
39.482 |
63.425 |
|
|
|
Carbon Credit Revenue |
0.000 |
0.000 |
6293.120 |
|
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TOTAL EARNINGS |
6091.967 |
6573.685 |
8173.412 |
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|
|
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IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1449.435 |
1022.153 |
1151.169 |
|
|
|
Finished Goods |
0.000 |
0.000 |
0.000 |
|
|
|
Stores & Spares |
78.540 |
49.213 |
93.247 |
|
|
|
Capital Goods |
1109.453 |
125.559 |
124.944 |
|
|
|
Others |
2637.428 |
1191.925 |
1369.360 |
|
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TOTAL IMPORTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
24.00 |
30.42 |
29.91 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
5834.300 |
5368.200 |
5834.300 |
|
Total Expenditure |
2683.300 |
2839.900 |
2683.300 |
|
PBIDT (Excl
OI) |
3151.000 |
2528.300 |
3151.000 |
|
Other Income |
89.900 |
94.400 |
89.900 |
|
Operating
Profit |
3240.900 |
2622.700 |
3240.900 |
|
Interest |
110.400 |
100.700 |
110.400 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
3130.500 |
2522.000 |
3130.500 |
|
Depreciation |
291.400 |
230.500 |
291.400 |
|
Profit
Before Tax |
2839.100 |
2291.500 |
2839.100 |
|
Tax |
649.300 |
407.100 |
649.300 |
|
Reported PAT |
2189.800 |
1884.400 |
2189.800 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
2189.800 |
1884.400 |
2189.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
22.09
|
31.60
|
31.55 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
34.30
|
40.76
|
45.41 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.01
|
24.26
|
32.10 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.26
|
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.60
|
0.60
|
0.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49
|
1.58
|
3.59 |
LOCAL AGENCY FURTHER INFORMATION
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
a) Industry
structure and developments
The Company makes HCFC22 – a product that is used as a refrigerant
and as feedstock in the manufacture of PTFE. There are 4 major manufacturers of
refrigerants in India, of which the company is the largest. Around 50% of the
Company’s HCFC22 production was captively consumed last year at it’s Dahej
plant for production of PTFE, and the balance 50% was sold. Of the sales of
HCFC22, 88% was exported to around 75 countries across the globe.
The
Refrigerant Gas market in India comprises of two distinct customer categories -
distributors, who cater to the replacement demand, and OEs, who represent
requirements for new equipment. Internationally, the market is serviced
predominantly by a network of distributors. The commissioning and stabilisation
of the chemical complex set up by the Company at Dahej, including the PTFE
plant, will ensure a steadily increasing demand for the HCFC22 produced by the
Company.
The
company has set up a chemical complex at Dahej, District Bharuch, Gujarat. The
Company manufactures Caustic Soda, Chlorine, Chloromethanes and Poly Tetra
Fluoro Ethane (PTFE) at this facility, and also operated
a
captive power plant. These products add to the Company’s product portfolio,
improve its competitive advantage due to forward and backward integration, and
provide longevity to the Company’s HCFC22 production beyond the control
provisions of the Montreal Protocol. After fully stabilising its existing
capacities and attaining acceptable levels of product quality and capacity
utilisation, the Company has increased its plant capacity of Caustic Soda to
1,15,000 tpa, Chloromethane capacity 1,05,000 tpa and Poly Tetra Fluoro Ethane
(PTFE) to 12,500 tpa, with corresponding increase in the capacity of its
captive power plant.
The
Company has been successfully operating, for more than 5 years now, a Clean
Development Mechanism Project which effects Greenhouse Gas Emission Reductions
by Thermal Oxidation of HFC23, and earns Carbon
Credits.
The Company is amongst the largest Carbon Credit generating projects in the
world. Industrial installations and utilities in Europe and Japan buy these
Carbon Credits for compliance under the Kyoto Protocol and / or the European
Union Emissions Trading Scheme.
The
Company already has around 65 MW of installed capacity in wind power
generation. The Company has set up a subsidiary, “Inox Wind Limited” (IWL)
which has set up manufacturing facilities for wind turbines at Una, Himachal
Pradesh and Bawla, Gujarat and has commenced commercial production of nacelles,
hubs, blades and towers for wind turbines, in pursuance of its business plans
to set up and operate wind farms.
The
Company has also set up a subsidiary, “Inox Renewables Limited” (IRL) to
implement the business of owning and operating of wind farms and has obtained
approval of its Shareholders to transfer, by way of slump sale, of the existing
wind energy business of the Company to IRL so as to be able to pursue growth
opportunities and improve operational efficiencies in the said business. The
slump sale will be executed after obtaining all statutory permissions required
for the purpose. It has also acquired land banks, and is in the process of
acquiring further land banks for its wind farms at wind-rich sites. The Company
has set up a robust and energetic operating team for this business.
b) Opportunities and threats
The
Refrigerant Business of the Company is operating at near full capacity. Prices
of HCFC-22 have improved
over
the past six months, increasing the profitability of this business. The key threat
to the Refrigerant Gas Business would be pressures on margins that may arise
due to competition from China. However, the Company’s competitive advantage has
been enhanced with the stabilisation and expansion of the integration projects
set up at Dahej.
The
Chemical Complex at Dahej has now stabilised and, after attaining full levels
of capacity utilisation, the Company has embarked upon an expansion plan to
increase capacities of Caustic Soda to 1,15,000 tpa, Chloromethane capacity to
1,05,000 tpa and Poly Tetra Fluoro Ethane (PTFE) capacity to 12,500 tpa, with
corresponding increase in the capacity of its captive power plant. Prices of
PTFE have improved significantly over the past six months, and margins are
therefore attractive. The key threats to this business are availability and
cost of energy (being one of the key inputs) and the company’s ability to meet
the stringent quality standards of the export markets.
On
the Carbon Credit Business, the Company continues its strong presence in the
international markets, and the sale of Carbon Credits to European buyers has
added a healthy revenue stream to the Company’s operating results and is
expected to do so, at least upto 2012. After an investigation that was carried
out by the CDM Executive Board on the Methodology that governed HFC-23
destruction projects, and all CDM projects globally that were governed by this
methodology, issuances of Carbon Credits to the Company have resumed. The key
threat to this business is the price volatility in the carbon markets, and
uncertainty about market for the Company’s Carbon Credits post 2012. The
Company has implemented an effective price hedging strategy to mitigate the
price volatility risk.
The
Wind Energy Business is quite nascent in the country, and there is a good
opportunity of creating value by identifying viable sites, a cost-effective
equipment manufacturing strategy and ability to raise capital efficiently. The
key threat in this business is increasing costs due to supply constraints of
components, wind uncertainty, and regulatory restrictions leading to inability
to sell the power generated at viable tariffs.
c) Segment-wise and product-wise performance
In
line with the requirements of the Accounting Standard on Segment Reporting
(AS-17), the Company has disclosed performance of each segment in the Note No
20 of Notes to the Accounts of Annual Report of the Company.
d) Outlook
HCFC22
is expected to witness a growth of more than 5% per annum globally, largely due
to growth in PTFE demand. Due to production shifts accentuated by the Montreal
Protocol, and the inherent cost competitiveness of Asian plants, HCFC22 plants
in India have been witnessing a 20% growth rate for the past several years. The
company, due to its vast marketing reach and increasing cost competitiveness,
as also due to faster Montreal Protocol mandated phase-out schedules in
developed countries, has been able to maintain a healthy growth rate over the
past few years, and, with the stabilisation and increased production levels at
the Dahej chemical complex, expects to be able to operate at near full capacity
levels, into the future.
The
outlook on the Chemical Complex at Dahej is quite positive, with increasing
volumes due to higher capacities and improved PTFE realizations due to better product
quality and increasing global prices. On the Carbon Credit front, it is
expected that with deeper emission reduction targets contemplated by Europe,
prices of Carbon Credits generated by the Company should remain firm. There is
uncertainty about the market post 2012, over which some clarity could perhaps
evolve over the next year(s).
As
regards the Wind Energy Business, there continues to be a demand-supply gap for
energy in general and renewable energy in particular, and regulatory framework
is evolving to encourage more investments in renewable energy projects. This
should provide the impetus a to further improve the viability of this business.
e) Internal control system and their adequacy
The
company has an adequate internal audit system commensurate with its size and
the nature of its business. The internal audit is carried out by independent
firms of Chartered Accountants, who interact with the Audit Committee on a
regular basis, with respect to the scope of audit, significant audit observations,
and remedial action required, if any.
f)
Discussion
on financial performance with respect to operational performance
The
financial performance of the Company continues to remain strong, and is
expected to show an improvement in the coming years, with the higher production
levels at the chemical complex at Dahej, the firming up of Carbon Credit
prices, and the commencement of revenues from the Wind Energy business.
g) Material developments in human resources / industrial
relations front, including number of people employed
The
company has around 1253 employees on its rolls. The company continues to have
cordial and harmonious relations with all its employees.
Website Details:
Director Profiles:
Mr. Devendra Kumar
Jain
Mr Devendra Kumar Jain is a graduate in History (Hons.) from
Mr. Vivek Kumar Jain
Mr. Vivek Kumar Jain is a graduate of Commerce from St Stephens College Delhi
and also has a post graduate degree in Business Administration from the Indian
Institute of Management Ahmedabad. He has over 25 years of rich business
experience in setting up and managing several busineses.
Mr. Pavan Kumar Jain
Mr. Pavan Kumar Jain is a Chemical Engineer from Indian Institute of
Technology,
Mr. Shailendra D
Swarup
Mr. Sahilendra D Swarup is a law graduate and a Senior Advocate. He is
practicing in the High Court and Supreme Court of India, at
Mr. Vimal Prakash
Mittal
Mr. Vimal Prakash Mittal is M.A., LL.B. and a retired IRS officer. He was Chief
Commissioner of Income Tax. He has served in various capacities in the
Government of India and also as Taxation Advisor to the Government of Barbados
(
Mr. Dinesh Kumar
Sachdeva
Mr. Dinesh Kumar Sachdeva is B.Tech (Chemical Engineering) from the Indian
Institute of Technology, Kharagpur, and has over 39 years of experience in the
technical field of various chemical / process plants.
Mr. Jitendra Singh
Bedi
Mr. Jitendra Singh Bedi is a Chemical Engineer and has over 33 years of experience
in the technical field of various chemical / process plants.
Dr. S Rama Iyer
Dr. S Rama Iyer is B E Chemical Engineer and has done his M Tech and Ph. D from
Indian Institute of Technlogoy, Mumbai. He is involved with Process Technology,
Design Engineering, Project Management and Construction Management of large
projects both in
Mr.
Mr. Om Prakash Lohia is Chairman and Managing Director of Indo Rama Synthetics
(
Mr. Deepak Asher
Mr. Deepak Asher graduated in Commerce and Law, and is a Chartered Accountant
and a Cost Accountant by profession. He has been associated with the Inox Group
for almost twenty years now, in different capacities. He is the founder
President of the Multiplex Association of India, and was awarded the
TheatreWorld Newsmaker of the Year Award for his contribution to the cinema
exhibition industry. He has been responsible for spearheading the Group’s
diversification into the cinema and CDM businesses, and now the wind energy
business.
Mr. Shanti Prasad
Jain
Mr. Shanti Prasad Jain is a leading Chartered Accountant and practicing since
1963. He has specialized in taxation matters of various reputed companies and
banks.
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] 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.48.91 |
|
|
1 |
Rs.77.30 |
|
Euro |
1 |
Rs.64.11 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
73 |
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.