|
Report Date : |
01.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
PRAKASH STEELAGE LIMITED |
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Registered
Office : |
701, “Mahalaxmi Chambers”, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
09.05.1991 |
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|
Com. Reg. No.: |
061595 |
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Capital
Investment / Paid-up Capital : |
Rs.175.000 Millions |
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|
CIN No.: [Company Identification
No.] |
L27106MH1991PLC061595 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP07782F |
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PAN No.: [Permanent Account No.] |
AAACP6673K |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturers of
Stainless Steel Welded, Seamless Pipes and Tubes. |
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|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 5516700 |
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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 reputed company having good track. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
701, “Mahalaxmi Chambers”, Bhulabhai Desai Road, Mahalaxmi, Mumbai –
400025, Maharashtra, India |
|
Tel. No.: |
91-22-66134500 |
|
Fax No.: |
91-22-66134599 |
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E-Mail : |
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Factory 1 : |
Silvassa: Survey No. 46/1, Parjai Road, Village-Kherdi, Union
Territory of Dadra and Nagar Haveli, Silvassa - 396 230, Gujarat, India |
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Factory 2 : |
Umbergaon: Plot No.131/1, Umbergaon, Sanjan Road, Valsad – 396170, Gujarat, India |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Prakash C. Kanugo |
|
Designation : |
Chairman and
Managing Director |
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|
|
|
Name : |
Mr. Ashok Sheth |
|
Designation : |
Executive Director |
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|
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|
Name : |
Mr. Hemant P.
Kanugo |
|
Designation : |
Whole Time
Director |
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|
Name : |
Mr. Kamal P Kanugo |
|
Designation : |
Whole Time
Director |
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|
Name : |
Dr. Bipin C Doshi
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|
Designation : |
Non Executive Director |
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|
|
|
Name : |
Mr. Himanshu J
Thaker |
|
Designation : |
Non Executive Director |
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|
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|
Name : |
Mr. Mrinmoy Roy |
|
Designation : |
Non Executive Director |
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|
|
|
Name : |
Mr. Gautam Chand Jain |
|
Designation : |
Non Executive Director |
KEY EXECUTIVES
|
Name : |
Ms. Sarika S Singh |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
|
|
|
a) Individuals / Hindu Undivided Family |
235000 |
1.34 |
|
|
|
|
|
Any Others (Specify) |
|
|
|
Directors/Promoters and Their Relatives and
Friends |
6649000 |
37.99 |
|
Group Companies |
4476524 |
25.58 |
|
|
|
|
|
2) Foreign |
|
|
|
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|
|
|
(B) Public Shareholdings |
|
|
|
1) Institutions |
|
|
|
Foreign Institutional Investors |
739992 |
4.23 |
|
|
|
|
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2) Non – Institution |
|
|
|
a) Bodies corporate |
3754083 |
20.42 |
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|
|
|
|
b) Individuals |
|
|
|
i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
486183 |
2.78 |
|
ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
1254929 |
7.17 |
|
|
|
|
|
c) Any other |
|
|
|
i) Clearing Member |
70383 |
0.45 |
|
ii) NRI – Repatriable |
4945 |
0.03 |
|
|
|
|
|
Total |
17500039 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of
Stainless Steel Welded, Seamless Pipes and Tubes. |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Stainless Steel Tubes and Pipes |
M.T. |
|
17600 |
11463.434 |
|
Scrap |
M.T. |
|
NA |
667.606 |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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Bankers : |
•
Vijaya Bank •
ICICI Bank •
Royal Bank of Scotland •
Bank of Baroda •
Standard Chartered Bank |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
[Term loans and Vehicle loans from banks and NBFC's include amount repayable within one year Rs.59.072 Millions (Pr. Yr. Rs. 62.371 Millions)]
|
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Banking
Relations : |
-- |
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|
Statutory Auditors : |
|
|
Name : |
Khandelwal Jain and Company Chartered Accountant |
|
|
|
|
Name : |
D C Bothra and Company Chartered Accountant |
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|
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|
Associates: |
• Sunrise Metal Industries • Seth Iron and Steel Private Limited • Seth Steelage Private Limited • Prakash Stainless Private Limited • PCK Metal Private Limited • Top Honest Inc. • Seth Carbon and Alloys Private Limited •
Prakash and Daga Infra Projects Private
Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17500039 |
Equity Shares |
Rs.10/- each |
Rs.175.000
Millions |
|
|
|
|
|
(Out of the above
3,234,000 Equity Shares of Rs. 10/- each were issued as fully paid Bonus Shares
by utilisation of Rs. 32,340,000/- from General Reserves)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
175.000 |
112.500 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
1204.175 |
396.263 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
1379.175 |
508.763 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
1309.395 |
983.137 |
|
|
2] Unsecured Loans |
|
218.417 |
428.050 |
|
|
TOTAL BORROWING |
|
1527.812 |
1411.187 |
|
|
DEFERRED TAX LIABILITIES |
|
50.024 |
45.125 |
|
|
|
|
|
|
|
|
TOTAL |
|
2957.011 |
1965.075 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
655.819 |
566.324 |
|
|
Capital work-in-progress |
|
66.528 |
58.120 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
1159.282 |
638.223 |
|
|
Sundry Debtors |
|
1521.928 |
1117.484 |
|
|
Cash & Bank Balances |
|
205.836 |
94.628 |
|
|
Other Current Assets |
|
22.713 |
18.126 |
|
|
Loans & Advances |
|
516.309 |
408.270 |
|
Total
Current Assets |
|
3426.068 |
2276.731 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
1046.074 |
748.924 |
|
|
Other Current Liabilities |
|
102.540 |
124.738 |
|
|
Provisions |
|
42.790 |
62.438 |
|
Total
Current Liabilities |
|
1191.404 |
936.100 |
|
|
Net Current Assets |
|
2234.664 |
1340.631 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
2957.011 |
1965.075 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
5442.992 |
4371.037 |
|
|
|
Export Incentives |
|
18.743 |
14.825 |
|
|
|
Fluctuation in Foreign Currency |
|
1.281 |
19.998 |
|
|
|
Other Income |
|
2.204 |
2.802 |
|
|
|
TOTAL (A) |
|
5465.220 |
4408.662 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases |
|
2878.211 |
2152.608 |
|
|
|
Raw Material Consumed |
|
1964.604 |
1504.757 |
|
|
|
Stores & Spares Consumed |
|
106.112 |
85.653 |
|
|
|
Manufacturing & Other Expenses |
|
66.821 |
58.078 |
|
|
|
Employees' Remuneration and Benefits |
|
70.397 |
51.888 |
|
|
|
Administrative & Selling Expenses |
|
101.611 |
79.437 |
|
|
|
Increase / (Decrease) in Stock |
|
(274.877) |
29.334 |
|
|
|
TOTAL (B) |
|
4912.879 |
3961.755 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
552.341 |
446.907 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
135.060 |
134.445 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
417.281 |
312.462 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
44.834 |
38.359 |
|
|
|
|
|
|
|
|
|
|
PRIOR PERIOD
ADJUSTMENT |
|
0.773 |
0.267 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
|
373.220 |
274.370 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
|
124.371 |
98.082 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
|
248.849 |
176.288 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
231.097 |
100.551 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
|
50.000 |
30.000 |
|
|
|
Dividend |
|
17.500 |
13.500 |
|
|
|
Tax on Dividend |
|
2.839 |
2.242 |
|
|
BALANCE CARRIED
TO THE B/S |
|
409.607 |
231.097 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
302.768 |
189.018 |
|
|
TOTAL EARNINGS |
|
302.768 |
189.018 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
1376.742 |
785.678 |
|
|
|
Capital Goods |
|
23.220 |
1.671 |
|
|
TOTAL IMPORTS |
|
1399.962 |
787.349 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
16.50 |
15.67 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
1318.450 |
1369.640 |
1603.940 |
|
Total Expenditure |
1176.020 |
1278.720 |
1526.350 |
|
PBIDT (Excl
OI) |
142.440 |
90.920 |
77.590 |
|
Other Income |
8.490 |
13.370 |
15.810 |
|
Operating
Profit |
150.930 |
104.290 |
93.400 |
|
Interest |
41.480 |
53.460 |
56.400 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
109.450 |
50.830 |
37.000 |
|
Depreciation |
12.050 |
12.350 |
13.780 |
|
Profit
Before Tax |
97.400 |
38.480 |
23.220 |
|
Tax |
40.150 |
12.350 |
7.390 |
|
Reported PAT |
57.250 |
26.130 |
15.830 |
|
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 |
57.250 |
26.130 |
15.830 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
|
4.55 |
3.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
6.85 |
6.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
9.14 |
9.65 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.27 |
0.54 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.97 |
4.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.88 |
2.43 |
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1)
Year of Establishment |
Yes |
|
2)
Locality of the firm |
Yes |
|
3)
Constitutions of the firm |
Yes |
|
4)
Premises details |
No |
|
5)
Type of Business |
Yes |
|
6)
Line of Business |
Yes |
|
7)
Promoter's background |
-- |
|
8)
No. of employees |
No |
|
9)
Name of person contacted |
No |
|
10)
Designation of contact person |
No |
|
11)
Turnover of firm for last two years |
Yes |
|
12)
Profitability for last two years |
Yes |
|
13)
Reasons for variation <> 20% |
-- |
|
14)
Estimation for coming financial year |
No |
|
15)
Capital in the business |
Yes |
|
16)
Details of sister concerns |
Yes |
|
17)
Major suppliers |
No |
|
18)
Major customers |
No |
|
19)
Payments terms |
No |
|
20)
Export / Import details (if applicable) |
-- |
|
21)
Market information |
-- |
|
22)
Litigations that the firm / promoter involved in |
-- |
|
23)
Banking Details |
Yes |
|
24)
Banking facility details |
Yes |
|
25)
Conduct of the banking account |
-- |
|
26)
Buyer visit details |
-- |
|
27)
Financials, if provided |
Yes |
|
28)
Incorporation details, if applicable |
Yes |
|
29)
Last accounts filed at ROC |
Yes |
|
30)
Major Shareholders, if available |
-- |
FINANCIAL PERFORMANCE
The income from operations for
the year has increased to Rs. 5740.098 millions as compared to Rs. 4379.328
millions of previous year reflecting a growth of 31%. The profit before tax
increased to Rs. 373.221 millions as against Rs.274.369 millions in the
previous year reflecting a growth of 36%. The Net Profit after Tax also was
higher by 41% at Rs. 248.848 millions as compared to Rs. 176.288 millions
during previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Industry Overview
The
benefit of Stainless Steel is quite evident and now there is increasing
awareness of the product. Apart from good demand in existing industrial use,
there is a shift from using MS Steel pipe and copper pipe to using Stainless
Steel. Many new areas are also adding to demand for example, in plumbing also
builders have started using stainless steel pipes. Projections for 2010 to 2015
suggest a 4.2% annual growth in worldwide stainless steel demand, with growth
reaching 7.7% per year for India and 6.2% per year for China during the same
period.
This
is basically due to the following reasons:
|
Airports |
Railways |
Architecture, Building and Construction |
Automotive |
|
Modernization
of airports. |
Refurbishing
of Railway Stations with world class facilities |
Urban
Renewal in the form
of street furniture e.g.
Bus Shelters |
India
as leading Automobile hub
especially for two wheelers
and small cars |
|
Stainless
steel in the form of escalators, cladding, railing, etc. |
Addition
of new stainless steel
wagons and coaches |
Shopping
Malls, organized retail is growing at a rapid pace. |
Increasing
use of Stainless steel in exhausts, wheel rims, etc. |
|
|
Development
of Metro Rail projects and street infrastructure |
|
|
INDUSTRIAL STRUCTURE
There
are currently 100 small and medium scale units and 4 to 5 organized units
engaged in manufacturing of stainless steel welded, seamless pipes and tubes. The
domestic demand presently for stainless steel welded pipes and tube is about
100,000 MT which is expected to increase up to 275,000 MT by the year 2015/16.
The top players globally in this segment are Valtimet/ Tubacex/ Centravis.
Company Specializes in meeting specific requirements of customers and offers
complete solution for stainless steel welded and seamless pipes and tubes. The
type of product varied based on the type, shape and size of the same some of
which are as listed below:-
•
S.S. Welded Tubes
•
S.S. Welded Pipes
•
S.S. Pipes
•
S.S. Seamless Tubes
•
S.S. Seamless Pipes
•
Square
•
U Bend Tubing
•
S.S. Grades
BUSINESS OVERVIEW
They
are into the business of manufacturing stainless steel pipes, tubes for more than
15 years. Since inception, they have made efforts to place their self in a
competitive position in the industry by proactively responding to their
customer requirements. The Company has emerged as one of the leading
manufacturers of stainless steel welded, seamless pipes and tubes in India and
caters to both the markets domestic as well as International. At present the
Company has the customers from oil and gas sector, power sector, desalination
and nuclear power plants, Engineering, Capital Goods, Chemical, Sugar and
various other core sector Industries.
They
want to leverage their strength to their benefit in future so as to become the
topmost player in the stainless steel tube industry. They wish to continue to
supply their products to corporate houses, increase their market share in the
industry, produce quality products at the competitive rates, adopt one of the
best human restheirce practices and also secure various certifications for
standards and quality improvement. They plan to boost their exports by
participating in trade fairs and exhibitions all over the World.
Company
is manufacturing stainless steel welded, seamless pipes and tubes and has set
up two industrial plants at Silvassa and Umbergaon. Having set up its first
Plant at Silvassa in the year 1996 with a capacity of 4000 MTPA, the Company
expanded its capacity by setting up another plant at Umbergaon in Gujarat and
presently has total capacity of 17600 MTPA, which is going to be expanded
further to 19000 MTPA during the year 2011-12 Prakash Steelage Limited employs
extensive internal controls, Company-wide uniform reporting guidelines and
additional measures, including employee training and continuing education, to
ensure that its financial reporting is conducted in accordance with accepted
accounting principles.
FINANCIAL PERFORMANCE
This
report, Management's Discussion and Analysis, provides an overview of the
financial position and results
of
activities of Subject (the "Company") for the year ended 31ST March, 2011. It has been
prepared by management and is required supplemental information to the
financial statements and the footnotes that follow this section.
The
income from operations for the year has increased to Rs. 57400.98 millions as compared to Rs. 4379.328 millions of previous year reflecting a
growth of 31%. The profit before tax is Rs. 373.221 millions as against Rs. 274.369 millions in the previous year
reflecting a growth of 36%. The Net Profit after Tax is Rs. 248.848 millions as compared to Rs. 176.288 millions during previous year
reflecting a growth of 41%. The Earning per Share (EPS) works out to be Rs.
16.50 per share on weighted average basis on the expanded capital after
successful IPO.
OUTLOOK
The
outlook for the Company's Business in future is very good. The Management
expects CAGR of over 30% during next five years. During the year the Company`s
capacity increased to 17600 MT same will reach 19000 MT on completion of
expansion project at Umbergaon.
OPPORTUNITIES AND
THREATS
Steel
industry plays an important role in the development of a Country. India, a
developing nation, requires huge contribution from this industry, to expedite
its run to reach new heights in world economy. India has large reserves of
mineral resources, such as, coal, iron ore etc and is in a strong position to
mobilise these resources into productive use. Vast market potential with
increasing Industries provides assured market to the industry.
Recovery
in Indian economy during 2009-10 has given rise to new investment opportunities
which will increase demand for steel products. The demand for steel is
increasing and the prices have also firmed up during the year under report. The
increase in steel making capacity by the Company will be absorbed by the
increasing demand for steel products.
As
per capita income consumption of stainless steel in India is only 1.20 kg as
against 6 kgs in China, 16 kgs in Japan and 30 kgs in Italy which shows that
there are tremendous growth opportunities in India. As a Company operating in
India, they are affected by the general economic conditions in the Country. The
Indian economy has grown steadily over the past several years. This improved
performance was propelled by the growth in industrial activity and robust
services sector. The overall economic growth will therefore impact the results
of its operations. The growth prospects of the business of the Company and its
ability to implement the strategies will be influenced by macro economic
growth.
Their
growth plans are considerable and would put significant demands on their
management team and other resources. Any delay in implementation of its
strategy and its growth and expansion plans could impact the Company's roll out
schedules and cause cost and time over runs.
Any
change in the factors such as industrial policies, tariffs, excise duties etc
which may affect the activities of the steel, oil and gas, pharmaceutical
industry etc. may affect their results of operation. Cyclical or seasonal
fluctuations in the operating results of the Company may affect the enduring
financial performance at large.
External
factors such as potential terrorist attacks, acts of war or geo-political and
social turmoil in many parts of the world could constrain their ability to do business,
increase the costs and negatively affect their financial performance.
Any
change in the foreign exchange control regulation, mainly interest rates and
tax laws pertaining to India affects the liquidity of cash in the market which
in turn affects the purchasing power of the economy.
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.56.42 |
|
|
1 |
Rs.87.37 |
|
Euro |
1 |
Rs.69.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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.