MIRA
INFORM REPORT
|
Report Date : |
02.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
NIKHIL ADHESIVES LIMITED |
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Registered
Office : |
Shreeji Industrial Estate, Vadkun. Collage Road, Dahanu, District
Thane – 401 602, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
29.09.1986 |
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Com. Reg. No.: |
11-041062 |
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Capital
Investment / Paid-up Capital : |
Rs.39.050
millions |
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|
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CIN No.: [Company Identification
No.] |
L51900MH1986PLC041062 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMN04256A |
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Legal Form : |
A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in the business of manufacturing water thinnable
polymer emulsions. |
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No. of Employees
: |
150 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 523000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and 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) |
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|
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
|
Registered Office/ Factory 1 : |
Shreeji Industrial Estate, Vadkun, |
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Tel. No.: |
91-258-224463/ 223107 |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Head Office : |
39, Gundivali, off |
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Tel. No.: |
91-22-26837973 |
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Sales Office/ Administrative Office : |
A, 501/502, Mathuria Apartments, Near Vishal Hall, |
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Tel. No.: |
91-11-26835864/ 26838030 |
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Fax No.: |
91-11-26840854 |
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E-Mail : |
bala@nikhiladhesives.com |
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Website : |
www.nikhiladhesives.com |
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Trading Office : |
A-405, Mathuria Apartments, Near Vishal Hall, |
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Tel. No.: |
91-11-26840750/ 26836550 |
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Factory 2 : |
7, Government Industrial Estate, Phase – I, Behind Euraform Factory,
Piparia, |
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Tel. No.: |
91-260-2640045/ 3292186 |
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Fax No.: |
91-260-2640055 |
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Factory 3 : |
Plot No.D-2/CH/49, Dahej – 2 Industrial Estate, GIDC, Dahej, Taluka
Vagra, District – Bharuch – 392 130, |
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Branch Office : |
Located
at: ·
Ahmedabad ·
Chennai ·
Kolkata ·
Jaipur ·
·
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. R.J. Sanghavi |
|
Designation : |
Executive Chairman |
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Name : |
Mr. U.J. Sanghavi |
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Designation : |
Managing Director |
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Name : |
Mr. T.J. Sanghavi |
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Designation : |
Executive Director |
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Date of Birth/ Age : |
02.10.1962 |
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Qualification : |
B. Com |
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Expertise in specific functional type : |
Commercial Management |
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Date of Appointment : |
29.09.1986 |
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Name : |
Mr. S.R. Sanghavi |
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Designation : |
Non Executive, Independent Director |
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Name : |
Mr. H.S. Kamath |
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Designation : |
Non Executive, Independent Director |
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Date of Birth/ Age : |
10.06.1942 |
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Qualification : |
B.E Mechanical |
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Expertise in specific functional type : |
Technical
Expertise in production process control and quality |
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Date of Appointment : |
15.02.2004 |
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Name : |
Mr. M.M. Vora |
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Designation : |
Non Executive, Independent Director |
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Name : |
Mr. A.P. Singh |
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Designation : |
Non Executive, Independent Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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2,326,860 |
59.75 |
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2,326,860 |
59.75 |
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Total shareholding of Promoter and Promoter Group (A) |
2,326,860 |
59.75 |
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(B) Public Shareholding |
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|
900 |
0.02 |
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|
900 |
0.02 |
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526,095 |
13.51 |
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514,511 |
13.21 |
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524,386 |
13.47 |
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|
1,548 |
0.04 |
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|
1,323 |
0.03 |
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|
225 |
0.01 |
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1,566,540 |
40.23 |
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Total Public shareholding (B) |
1,567,440 |
40.25 |
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Total (A)+(B) |
3,894,300 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
3,894,300 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of manufacturing water thinnable
polymer emulsions. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Unit |
Actual
Production |
|
Adhesives and Emulsions |
Kgs. |
16,955,471 |
|
Other Chemicals |
Kgs. |
-- |
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GENERAL INFORMATION
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No. of Employees : |
150 (Approximately) |
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Bankers : |
·
Bank of ·
Barclays Bank Plc ·
Standard Chartered Bank ·
HDFC Bank Limited |
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Facilities : |
Notes : 1. The above
working capital facilities and letters of credit facilities (inland /
foreign) from the consortium banks viz. Bank of India, Barclays Bank and Standard
Chartered Bank are secured against hypothecation of stock of raw and packing
materials, finished goods, book debts, and plant and machineries of the
company on pari passu basis. Further the above credit facilities are
collaterally secured against equitable mortgage of factory blocks at Dahanu. 2. The term loan
facilities from Bank of India at Dahanu and Silvasa are secured against
hypothecation of the plant and machineries and equitable mortgage of factory
blocks. 3. All the credit
facilities mentioned in note no.1 and 2 above are secured by personal
guarantees of the promoter directors and are collaterally secured against
equitable mortgage of certain residential flats of the promoter directors in
favour of the said banks on pari passu basis. 4. The principal
amounts of the vehicle loan installments due within one year from the date of
balance sheet is Rs.0.334 million (Previous Year Rs.0.343 million).The loans
are secured against hypothecation of the vehicles financed.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
PHD and Associates Chartered Accountants |
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Address : |
Mumbai, |
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Subsidiaries : |
Sanghavi Logistics Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4950000 |
Equity Shares |
Rs.10/- each |
Rs.49.500 millions |
|
50000 |
8% Non Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.0.500 million |
|
|
Total |
|
Rs.50.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3894300 |
Equity Shares |
Rs.10/- each |
Rs.38.943
millions |
|
|
Add : Forfeited Shares Account |
|
Rs.0.107
million |
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Total |
|
Rs.39.050 millions |
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 |
39.050 |
39.050 |
39.050 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
91.673 |
72.428 |
55.180 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
130.723 |
111.478 |
94.230 |
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LOAN FUNDS |
|
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|
1] Secured Loans |
113.188 |
151.293 |
169.585 |
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2] Unsecured Loans |
46.224 |
49.728 |
39.395 |
|
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TOTAL BORROWING |
159.412 |
201.021 |
208.980 |
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DEFERRED TAX LIABILITIES |
10.055 |
10.951 |
8.775 |
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TOTAL |
300.190 |
323.450 |
311.985 |
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APPLICATION OF FUNDS |
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|
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FIXED ASSETS [Net Block] |
96.066 |
89.344 |
78.513 |
|
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Capital work-in-progress |
6.955 |
0.000 |
3.509 |
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INVESTMENT |
0.136 |
0.136 |
2.036 |
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DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
191.411
|
108.056 |
127.230
|
|
|
Sundry Debtors |
237.420
|
271.352 |
209.882
|
|
|
Cash & Bank Balances |
26.454
|
24.059 |
38.331
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
46.698
|
35.117 |
30.108
|
|
Total
Current Assets |
501.983
|
438.584 |
405.551 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
281.543
|
177.299 |
160.934 |
|
|
Other Current Liabilities |
10.925
|
13.012 |
9.236 |
|
|
Provisions |
12.482
|
14.303 |
7.454 |
|
Total
Current Liabilities |
304.950
|
204.614 |
177.624 |
|
|
Net Current Assets |
197.033
|
233.970 |
227.927
|
|
|
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|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
300.190 |
323.450 |
311.985 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales / Income from Operations |
1303.605 |
1218.056 |
1044.227 |
|
|
|
Other Income |
4.226 |
0.396 |
0.813 |
|
|
|
TOTAL (A) |
1307.831 |
1218.452 |
1045.040 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
1117.226 |
1042.722 |
885.785 |
|
|
|
Personnel Expenses |
31.834 |
27.464 |
21.961 |
|
|
|
Operation Expenses |
83.735 |
74.379 |
85.289 |
|
|
|
TOTAL
(B) |
1232.795 |
1144.565 |
993.035 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
75.036 |
73.887 |
52.005 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
26.273 |
26.908 |
28.296 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
48.763 |
46.979 |
23.709 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
11.188 |
9.634 |
9.830 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
37.575 |
37.345 |
13.879 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
12.904 |
14.647 |
5.136 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
24.671 |
22.698 |
8.743 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
13.216 |
8.467 |
7.369 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
4.673 |
4.673 |
3.116 |
|
|
|
Dividend Tax |
0.753 |
0.776 |
0.529 |
|
|
|
Transferred to General Reserve |
17.500 |
12.500 |
4.000 |
|
|
BALANCE CARRIED
TO THE B/S |
14.961 |
13.216 |
8.467 |
|
|
|
|
|
|
|
|
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|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
2.550 |
8.113 |
2.400 |
|
|
|
Software Development Charges |
0.000 |
0.918 |
2.037 |
|
|
|
Commission received |
0.035 |
1.078 |
2.411 |
|
|
TOTAL EARNINGS |
2.585 |
10.109 |
6.848 |
|
|
|
|
|
|
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IMPORTS |
|
|
|
|
|
|
|
Materials (for Manufacturing & Trading) |
537.636 |
359.640 |
455.469 |
|
|
TOTAL IMPORTS |
537.636 |
359.640 |
455.469 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.34 |
5.83 |
2.24 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
407.020 |
|
Total Expenditure |
|
|
382.660 |
|
PBIDT (Excl OI) |
|
|
24.360 |
|
Other Income |
|
|
0.140 |
|
Operating Profit |
|
|
24.500 |
|
Interest |
|
|
6.620 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
17.880 |
|
Depreciation |
|
|
2.870 |
|
Profit Before Tax |
|
|
15.000 |
|
Tax |
|
|
4.500 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
10.500 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
10.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.89
|
1.86 |
0.84 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.88
|
3.07 |
1.33 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.28
|
7.07 |
2.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.33 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.55
|
3.64 |
4.10 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.65
|
2.14 |
2.28 |
LOCAL AGENCY FURTHER INFORMATION
RESULT OF
OPERATIONS (STANDALONE)
The Financial year
ended 2010-11 was a year of improved performance and consolidation for the
company. Even though the global and national economic scenario posed several
challenges, the Company has made the best of the available opportunities and
resources for growth.
The sales turnover
of the company has increased from Rs.1291.600 millions to Rs.1420.800 millions
registering growth of approx 10%. Other income for the year is Rs.4.200
millions as against Rs.0.400 million for the previous year. The operating
profit before depreciation and tax is Rs.48.763 millions compared to 46.979
millions in the previous year registering about 4% increase due to stability in
foreign currency market and better realizations for the Company’s products. The
profit after depreciation and tax is Rs.24.671 millions compared to Rs.22.698
millions for the previous year.
SUBSIDIARY COMPANY
Last year the company had invested in a wholly owned Subsidiary Company,
Sanghavi Logistics Private Limited. The subsidiary company has not yet
commenced its business activities.
MANAGEMENT DISCUSSIONAND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENT
The company is in
the business of manufacturing water thinnable polymer emulsions at its two
plants located at Dahanu and Silvassa. These emulsions have application in
varied industries such as paints, textiles, packaging and the furniture
industry. The products, being eco friendly, there is a general trend to shift
to these water based emulsions. For instance, in the paint segment, the demand
for solvent based products is being gradually replaced by water thinnable
binders.
The company also
manufactures products which find application in the consumer segment and are
sold through retail channel. Products like wood adhesives, sealants, screen
printing adhesives, etc. are sold through retail outlets. Thus the company has
a balanced product mix by virtue of its presence in both the industrial and
consumer segment.
The Industry has
both local and multinational players and with the duty structure now being
quite reasonable, the local players are also in a position to compete with the
multinationals.
FINANCIAL
PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
MANUFACTURING
DIVISION
During the year the
production has increased from 19783 M. Tonnes to 21280 M. Tonnes in terms of
volume registering growth of 7.57%. In value terms the sales has increased from
Rs.734.800 millions to Rs.925.300 millions registering impressive growth of
about 26%. It is pertinent to note that the share of industrial adhesives,
which is an important product category from the company’s perspective both in
terms of margins and customer loyalty, has increased from 22% to 30% while the
share of consumer adhesives has remained constant at 9% even on the enhanced
production.
TRADING DIVISION
In the trading
segment, the turnover decreased to Rs.378.300 millions from Rs.483.300 millions
registering a decline of 21.73% due to the Company’s conscious decision to
focus on the manufactured products.
FOREIGN EXCHANGE
FLUCTUATIONS
The Company’s
business is import-centric. However due to better forex management systems
adopted by the company and comparatively moderate fluctuations in the foreign
exchange rates this year, the company has earned a foreign exchange
fluctuations gain of Rs.5.582 millions.
OUTLOOK
The existing two
manufacturing plants are not able to cater fully to the ever increasing demand
due to capacity constraints. The company is in the process of establishing a
third plant at Dahej (
Fixed Assets:
·
·
· Factory Buildings
· Plant and Machinery
· Computers
· Vehicles
· Furniture and Fixtures
· Goodwill
· MDC Logo
· Technical Know How
· Trade Mark
WEBSITE DETAILS:
HISTORY:
1986 - Subject was founded as Hans Marketing and
Services Private Limited (HM and S Private Limited).
1992 - HM and S Private Limited Merged with M/s Nikhil
Industries under the name Nikhil Adhesives.
1992 - Nikhil Adhesives became Public limited
company (traded on the Bombay Stock Exchange).
2003 – Subject Acquired Mafatlal Dyes and
Chemicals Limited formerly known as Hoechst Dyes and Chemicals Limited the
pioneers of adhesives business in
2007 - Subject expanded their manufacturing activity and setup a new
additional unit at Silvassa equiped with modern machineries and facilities to
produce and cater to the requirement of various industries.
PROFILE:
Subject, a listed Company
with the Bombay Stock Exchange Limited, is a Multi Product Company
manufacturing various types of polymer emulsions for different industries. It will
be completing 25 years of corporate existence in September this year. It has
plants located at Dahanu (Maharashtra) and Silvassa (
The company's products are well accepted by the industry and with the
ever growing demands, a third plant to augment the manufacturing capacity is
under construction at Dahej-2 Industrial Estate, Bharuch (
Subject,
besides manufaturing polymer emulsions is also in the buisness of
indenting and marketing of bulk raw materials.
Subject has a well equipped laboratory to develop products for various application and is committed to manufacture products at affordable prices of its customers. The company believes in constantly upgrading and introducing new products to meet the ever growing needs of the various industries.
The company philosophy to improve 'the quality of life for all', stems
from the strong belief and desire to make best use of the available resources,
minimise pollution and provide value addition to the products so as to give the
optimum benefits to the stakeholders and society at large
The state of the art laboratory equipped with modern testing equipments
is constantly upgrading the information base and working always towards product
perfection. Our laboratory activities are focused on the development of new
grades as well as improvement of existing products. The laboratory is managed
by qualified and experienced persons from the field of emulsion technology.
Regular interactions of R and D and technical services persons are arranged
with customers to understand their requirements in totality. This helps company
to do value addition to the product range manufactured by the company.
Business
Description
Subject is an India-based company engaged in the business of
manufacturing water thinnable polymer emulsions at its two plants located at
Dahanu and Silvassa. These emulsions have application in varied industries from
paints, textiles, packaging and even in the furniture industry. Subject
operates in two segments: manufacturing of adhesives and emulsions, and trading
in chemicals. The Company also manufactures products, which find application in
the consumer segment and are sold through retail channel. The Company’s
products like wood adhesives, sealants and screen printing adhesives are sold
through retail outlets. The Company’s products include mahacol SH, mahacol
tatkal, mahacol mafbond, mahacol rhino, emdicryl 4150, emdicryl 4350, emdicryl
2042, emdicryl 2425, emdilith DM21, emdilith DSP, emdilith THK, emditex MBX,
emdilcryl 2523, emdirust 217 and emdilith LM. The Company’s subsidiary is Sanghavi
Logistics Private Limited
BOARD OF DIRECTORS
H. S. Kamath
Non-Executive
Independent Director
Mr. H. S. Kamath is Non-Executive Independent Director of Subject He
holds B.E Mechanical. Technical production process control and quality.
Tarak J. Sanghavi
Executive Director
Shri. Tarak J. Sanghavi is Executive Director of Subject He holds B.Com.
He has experience in Commercial Management.
A. P. Singh
Non-Executive
Independent Director
Shri. A. P. Singh is Non-Executive Independent Director of Subject. He
holds M.Sc. in Chemistry and also MBA from Indian Institute of Management
(IIM), Ahmedabad. He has overall 37 years of experience which includes his
services as General Manager in IPCL and Senior Vice President in Reliance
Industries Limited His experience and knowledge would be beneficial to the
Company.
M. M. Vora
Non-Executive
Independent Director
Shri. M. M. Vora is Non-Executive Independent Director of Subject He
holds B.Com. He is a Businessman.
PRESS RELEASES:
ICRA ASSIGNS
"A3" RATING FOR NIKHIL ADHESIVES' SHORT TERM DEMAND LOAN
India, November 17 -- ICRA has assigned "A3" rating for Nikhil
Adhesives' (NAL) short term demand loan worth Rs.30.000 millions (which
comprises of Rs.13.300 millions enhanced amount and reclassified proposed
enhancement amount rated earlier).The ratings continue to reflect NAL's
established presence in the paints and emulsions industry, its reputed client
base and locational advantage arising from proximity to ports and end-user
industries. The ratings also factors in its satisfactory financial risk profile
with improving capital structure. However the ratings are constrained by the
moderate profitability margins and coverage indicators and vulnerability of
margins to raw material price and forex fluctuations. The ratings are also
constrained by high competitive pressures in the industry with strong
competition from unorganized (large presence) as well as organized players
which would continue to put pressure on the margins going forward. NAL, a
listed company with the Bombay Stock Exchange, is engaged in the manufacturing
of various types of industrial and consumer chemical products like adhesives,
binders, thickeners and construction chemicals. It is also engaged in trading
of chemicals. NAL's marketing offices are at Chennai, Ahmedabad,
ICRA STAYS RATINGS
ON DEBT OF NIKHIL ADHESIVES AT BBB-/A3
22 July 2011 - Rating agency ICRA today confirmed its BBB-/A3 ratings on the debt facilities of Indian Nikhil Adhesives Limited (BOM:526159), assigning a long-term "stable" outlook.
The ratings factor in the company's established presence in the paints
and emulsions industry, its favourable location close to ports and end-user
industries and its satisfactory financial risk profile, ICRA said.
But the ratings also reflect Nikhil's moderate profit margins and
coverage indicators, and the susceptibility of its margins to raw material
price and forex changes along with competitive pressures in the sector.
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.53.27 |
|
|
1 |
Rs.82.10 |
|
Euro |
1 |
Rs.68.90 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
Yes |
|
--OTHER MERIT FACTORS |
YES/NO |
Yes |
|
TOTAL |
|
45 |
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.