MIRA
INFORM REPORT
|
Report Date : |
18.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
VBC FERRO ALLOYS LIMITED |
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Registered
Office : |
6-2-913/914, , 3rd Floor, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
03.10.1981 |
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Com. Reg. No.: |
003223 |
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Capital
Investment / Paid-up Capital : |
Rs.43.950
Millions |
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|
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CIN No.: [Company Identification
No.] |
L27101AP1981PLC003223 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturers of Ferro Silicon, Ferro Chrome and Silico Manganese. |
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No. of Employees
: |
258 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5800000 |
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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. Financially
company is performing well. Trade relations are reported to be fair. Business
is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings on a 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
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 : |
6-2-913/914, , 3rd Floor, |
|
Tel. No.: |
91-40-23301166/ 99/ 23301206/ 23301208/ 23320904 |
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Fax No.: |
91-40-23390721 |
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E-Mail : |
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Website : |
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Factory : |
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Tel No.: |
91-8455-220084/ 220130 |
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Fax No.: |
91-8455-220142 |
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Mailing Address : |
Post Box No.30, Khairatabad, |
DIRECTORS
(AS ON 31.03.2011)
|
Name : |
Dr. M.V.V.S. Murthi |
|
Designation : |
Chairman |
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Name : |
Dr. P.L. Sanjeev Reddy |
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Designation : |
Director |
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|
Name : |
Mr. M. N. Rao |
|
Designation : |
Director |
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|
Name : |
Mr. M. V. Ananthakrishna |
|
Designation : |
Director |
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|
Name : |
Mr. M. S. Lakshman Rao |
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Designation : |
Managing Director |
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Date of Birth/ Age : |
48 years |
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Qualification : |
B. Tech |
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Experience : |
25 years |
|
Previous Employment : |
VBC Exports Limited (Managing Director) |
KEY EXECUTIVES
|
Name : |
Mr. V V. V. S. N. Murty |
|
Designation : |
AGM (Finance) and Company Secretary / Compliance Officer |
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Name : |
Mr. K. Kailasanatha Reddy |
|
Designation : |
Vice President (Finance) |
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Name : |
Mr. K.R. K. Murthy |
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Designation : |
Head - Works |
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AUDIT COMMITTEE: |
· Mr. M N Rao – Chairman ·
Dr.
P.L. Sanjeev Reddy – Member · Mr. M. V. Ananthakrishna – Member |
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INVESTORS'
GRIEVANCE AND SHARE TRANSFER COMMITTEE : |
· Dr. M.V.V.S. Murthi – Chairman · Mr. M. N. Rao – Member · Mr. M. S. Lakshman Rao – Member |
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|
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REMUNERATION
COMMITTEE: |
·
Dr.
P.L. Sanjeev Reddy – Chairman · Mr. M N Rao – Member · Mr. M. V. Ananthakrishna – Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2012)
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
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|
775,279 |
17.64 |
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|
839,180 |
19.10 |
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|
1,614,459 |
36.74 |
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Total shareholding
of Promoter and Promoter Group (A) |
1,614,459 |
36.74 |
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(B) Public
Shareholding |
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|
|
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|
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|
1,200 |
0.03 |
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|
5,960 |
0.14 |
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|
150 |
- |
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|
7,310 |
0.17 |
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|
|
|
|
|
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|
671,217 |
15.27 |
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|
|
|
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1,372,160 |
31.23 |
|
|
464,510 |
10.57 |
|
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|
|
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|
264,694 |
6.02 |
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|
18,144 |
0.41 |
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|
246,550 |
5.61 |
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|
2,772,581 |
63.09 |
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Total Public
shareholding (B) |
2,779,891 |
63.26 |
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Total (A)+(B) |
4,394,350 |
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) |
4,394,350 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturers of Ferro Silicon, Ferro Chrome and Silico Manganese. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Ferro Silicon |
MT |
15000 |
10000 |
16386 |
|
Pig Iron / Silico Manganese/Ferro Manganese |
MT |
45500 |
27000 |
-- |
|
Ferro Chrome / Charge Chrome |
MT |
20400 |
31500 |
-- |
GENERAL INFORMATION
|
No. of Employees : |
258 (Approximately) |
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Bankers : |
·
Bank of Nampally |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Brahmayya and Company Chartered Accountant |
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Address : |
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Associates : |
· Konaseema Gas Power Limited · VBC Industries Limited ·
Orissa power Consortium Limited |
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Others: Enterprises
in which key Managerial Personnel or their relatives have substantial
interest : |
· VBC Exports Limited ·
Techno Infratech project ( · BASIL Infrastructure projects Limited ·
Indo-Us Coal Washeries Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
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Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
4396450 |
Equity Shares |
Rs.10/- each |
Rs.43.965
Millions |
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
4394350 |
Equity Shares |
Rs.10/- each |
Rs.43.944
Millions |
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Add: Amount received on 2010 forfeited
shares |
|
Rs.0.006
Million |
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Total |
|
Rs.43.950 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 |
43.950 |
43.950 |
41.950 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1403.189 |
1316.562 |
1359.861 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1447.139 |
1360.512 |
1401.811 |
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LOAN FUNDS |
|
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1] Secured Loans |
164.649 |
103.481 |
106.800 |
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2] Unsecured Loans |
235.490 |
258.155 |
175.825 |
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TOTAL BORROWING |
400.139 |
361.636 |
282.625 |
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DEFERRED TAX LIABILITIES |
50.401 |
53.844 |
0.000 |
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TOTAL |
1897.679 |
1775.992 |
1684.436 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
158.534 |
142.967 |
175.544 |
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Capital work-in-progress |
30.911 |
20.413 |
12.574 |
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INVESTMENT |
1575.015 |
1574.297 |
1472.196 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
11.876 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
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Inventories |
184.752
|
121.977 |
158.953 |
|
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Sundry Debtors |
102.932
|
88.648 |
87.302 |
|
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Cash & Bank Balances |
45.181
|
19.850 |
21.898 |
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Other Current Assets |
4.497
|
3.773 |
3.813 |
|
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Loans & Advances |
173.647
|
85.255 |
121.490 |
|
Total
Current Assets |
511.009
|
319.503 |
393.456 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
279.296
|
186.075 |
330.900 |
|
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Other Current Liabilities |
19.704
|
39.963 |
27.905 |
|
|
Provisions |
78.259
|
55.150 |
22.405 |
|
Total
Current Liabilities |
377.790
|
281.188 |
381.210 |
|
|
Net Current Assets |
133.219
|
38.315 |
12.246 |
|
|
|
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|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1897.679 |
1775.992 |
1684.436 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1124.412 |
838.249 |
806.651 |
|
|
|
Other Income |
12.805 |
37.765 |
14.467 |
|
|
|
TOTAL (A) |
1137.217 |
876.014 |
821.118 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/(Decrease) in Stocks |
(0.846) |
18.901 |
38.383 |
|
|
|
Raw Materials Consumed |
380.116 |
266.140 |
239.360 |
|
|
|
Power and fuel |
413.113 |
339.505 |
297.052 |
|
|
|
Staff Cost |
70.267 |
56.250 |
42.569 |
|
|
|
Other Expenses |
69.785 |
70.473 |
123.065 |
|
|
|
TOTAL (B) |
932.435 |
751.269 |
740.429 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
204.782 |
124.745 |
80.689 |
|
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
37.735 |
32.312 |
56.937 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
167.047 |
92.433 |
23.752 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
12.722 |
14.801 |
13.888 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
154.325 |
77.632 |
9.864 |
|
|
|
|
|
|
|
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|
Less |
TAX (H) |
52.377 |
25.740 |
3.789 |
|
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-H) (I) |
101.948 |
51.892 |
6.075 |
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
242.196 |
343.539 |
348.911 |
|
|
|
|
|
|
|
|
|
|
Income
Tax for Earlier Years |
-- |
(80.900) |
(0.632) |
|
|
|
Deferred
Tax for Earlier Years |
-- |
(50.482) |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
27.000 |
9.000 |
1.000 |
|
|
|
Proposed Dividend |
13.183 |
10.986 |
8.389 |
|
|
|
Tax on Proposed Dividend |
2.139 |
1.867 |
1.426 |
|
|
BALANCE CARRIED
TO THE B/S |
301.822 |
242.196 |
343.539 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
101.561 |
127.111 |
329.671 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
23.20 |
11.80 |
1.45 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
285.930 |
281.450 |
225.670 |
277.480 |
|
Total Expenditure |
227.520 |
231.400 |
206.350 |
256.110 |
|
PBIDT (Excl OI) |
58.410 |
50.050 |
19.320 |
21.370 |
|
Other Income |
2.960 |
4.980 |
7.420 |
7.380 |
|
Operating Profit |
61.370 |
55.030 |
26.740 |
28.750 |
|
Interest |
9.470 |
10.860 |
10.630 |
14.370 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
51.900 |
44.170 |
16.110 |
14.380 |
|
Depreciation |
3.220 |
3.250 |
3.270 |
0.420 |
|
Profit Before Tax |
48.680 |
40.910 |
12.840 |
13.970 |
|
Tax |
15.800 |
12.900 |
2.360 |
5.090 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
32.890 |
28.010 |
10.480 |
8.880 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
32.890 |
28.010 |
10.480 |
8.880 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.96
|
5.92 |
0.74 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.72
|
9.26 |
1.22 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
23.05
|
16.79 |
1.73 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.06 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.54
|
0.47 |
0.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35
|
1.14 |
1.03 |
LOCAL AGENCY FURTHER INFORMATION
|
Check list by info
Agents |
Available in Report (Yes/ No) |
|
|
|
|
Year of Establishment |
Yes |
|
Locality of the Firm |
Yes |
|
Constitution of the Firm |
Yes |
|
Premises details |
No |
|
Type of Business |
Yes |
|
Line of Business |
Yes |
|
Promoter’s Background |
Yes |
|
No. of Employees |
Yes |
|
Name of Person Contacted |
No |
|
Designation of Contact person |
No |
|
Turnover of Firm for last three years |
Yes |
|
Profitability for last three years |
Yes |
|
Reasons for variation <> 20% |
----- |
|
Estimation for coming financial year |
No |
|
Capital in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
----- |
|
Litigations that the firm/ Promoters Involved in |
----- |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
----- |
|
Buyer visit details |
----- |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
No |
INDUSTRY OVERVIEW:
The company had improved its performance in comparison with previous
year. The manufacture of Ferro Alloys is highly power-intensive, on an average 40%
of the total cost per tonne of Ferro alloys is accounted for by power. As such,
producers, who have captive power generation, are protected against volatile
market trends in this industry. Hence, the Company is taking steps to set up a
Captive Power Plant.
BUSINESS
PERFORMANCE
During the financial year 2010-11, the company has produced 16386 MT of
Ferro Silicon against 15,198 MT during the previous year and sold 16255 MT of
Ferro Silicon at a value of Rs.1137.216 Millions as against 15,209 MT at a value
of Rs.875.482 Millions during the previous year. The Company has exported 1387
MT of Ferro Silicon to various countries like
PROSPECTS
The Economic recovery is expected to continue its positive momentum
across the world. The Government of India has planned a spending of
Rs.1000000.000 Millions on Infrastructure in the 12th five year plan as against
Rs.461000.000 Millions in the 11th five year plan. The Infrastructure industry
is expected to register strong growth in the domestic sector thus boosting the
steel consumption. The upward trend in the steel industry will create huge
demand for Ferro Alloy Products. With the consistent market demand and expected
realizations, the prospects of the company during the current year are expected
to be very good.
THERMAL POWER
PLANT -120MW (2X60MW)
The company is setting up a 120MW (2x60MW) coal based captive power
plant at Bodepalli Village, Sirpur Kagaznagar Mandal, Adilabad Dt. The Company
has obtained Coal Linkage from nearby M/s Western Coal Fields Limited and
suitable land required 150 Acres (approx) has already been acquired.
Ministry of
The required equity for the project will be obtained through issue of
shares on Rights basis and partly internal accruals of the Company.
The financial closure of the project is expected to be completed by the
end of year 2011.
CAPACITY
EXPANSION:
The increase in demand for Ferro Alloys, the company is also expanding
its Ferro alloy production capacity by setting up 3 furnaces with a rated
capacity of 9MVA each (3x9MVA) at Bodepalli (V&GP), Sirpur Kagaznagar
Mandal, Adilabad District, which is a notified industrially backward area to
utilize the opportunities/incentives provided by Government of Andhra Pradesh.
The proposed Captive Power Plant will feed the power to the expansion unit
also.
INVESTMENT IN KGPL
445 MW GAS BASED POWER PLANT
Konaseema Gas Power Limited (KGPL) in which the Company has a major
investment of equity, has declared commercial operations with effect from 30th
June, 2010. KGPL incurred a net loss of Rs.570.187 Millions during its first
year of operations mainly due to insufficient supply of gas. Notwithstanding
the net loss, KGPL could earn a cash profit of Rs.309.018 Millions for the year
ended 31.03.2011.
INVESTMENT IN OPCL
20 MW DAM BASED HYDEL POWER PLANT
20 MW Dam Based Hydro Electric Power Project owned by Orissa Power
Consortium Limited (OPCL), in which the Company has invested in equity incurred
a net loss of Rs.50.800 Millions mainly due to failure of normal monsoon in the
Brahamini Catchment area during the year ended 31.03.2011, which is its first
year of commercial operations. Notwithstanding the net loss, OPCL could earn a
cash profit of Rs.19.400 Millions for the year.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
Ferro Alloy Industry mainly caters to the needs of steel industry. Ferro
alloys are used as additives and deoxidizing agents in steel manufacture. Steel
producers use Ferro manganese, Silico manganese and Ferro silicon, while
stainless steel units use Ferro chrome and charge chrome. At present, though
there is surplus capacity in the country, severe power cuts is hampering the
production.
Strong growth in steel and stainless steel is expected in the near
future with strong demands in infrastructure industry. And it is expected that
the excess capacity will be absorbed and further growth is anticipated in Ferro
Alloys Industry in the years to come to match the growth of Steel Industry.
OUTLOOK
Long term outlook of the company will be encouraging because of the
following reasons:
a) A Captive Power Plant of 120 MW (2x60MW) capacity is being setup by
the Company at
b) The company had already invested significant funds in 445 MW Natural
Gas Based Power Project of M/s. Konaseema Gas Power Limited and 20 MW Dam Based
Hydro Electric Power Project of M/s. Orissa Power Consortium Limited, which are
on stream resulting in returns.
FIXED ASSETS:
· Land
· Building
· Plant and Machinery
· Furniture
· Office Equipment
· Vehicles
WEBSITE DETAILS:
PROFILE:
The acronym “VBC”
stands for Vizag
Bottling Company
The VBC group, a reputed industrial house of Andhra Pradesh with more
than three decades standing, is a professionally managed conglomerate.
Founded in 1967, VBC was incorporated by Dr. M.V.V.S. Murthi as a
partnership firm in the name of Vizag Bottling Company to carry on the business
of bottling and distribution of soft drinks from
In 1981, as a diversification strategy, Dr. M. V. V. S. Murthi had
incorporated company for manufacturing of Ferro Alloys. The company has set up
its plant at
Company shares are listed on Bombay Stock Exchange Limited.
To capture opportunities in power generation, the Company has invested
in Konaseema Gas Power Limited (KGPL), the natural gas based combined cycle
power plant with a capacity of 445 MW (Phase-I) and has been Supplying power to
Aptransco. The KGPL is in the process of adding another 820 MW (Phase
II).
Company also invested in Orissa Power Consortium Limited for
implementing hydro based power projects. Currently Orissa Power Consortium
Limited operates Samal Barrage Hydro Electric Project of 5 X 4 MW (20mw).
Company is a highly power intensive industry and therefore it requires
quality power at a reasonable price. To overcome the difficulties in
obtaining power, the Company is going to set up 120MW (2X60MW) coal based
captive power plant at Bodepalli Village, Kagaznagar Mandal, Adilabad
District, Andhra Pradesh. The necessary coal linkage has been obtained,
required land is in place and other steps such as Pollution Control Permission,
water and other facilities are on the anvil.
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.55.15 |
|
|
1 |
Rs.86.30 |
|
Euro |
1 |
Rs.67.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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.