MIRA INFORM REPORT

 

 

Report Date :

10.03.2012

 

 

 

 

Tel. No.:

912764661100

 

NOTE:

Correct name of the company is “S A L STEEL LIMITED”

 

 

IDENTIFICATION DETAILS

 

Name :

S A L STEEL LIMITED

 

 

Registered Office :

5/1, Shreeji House, Behind M. J. Library, Ashram Road, Ahmedabad – 380006, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

06.11.2003

 

 

Com. Reg. No.:

04-43148

 

 

Capital Investment / Paid-up Capital :

Rs.849.667 Millions

 

 

CIN No.:

[Company Identification No.]

L29199GL2003PLC043148

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMS07537F

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Sponge Iron and Ferro Alloy Products.

 

 

No. of Employees :

1000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 5000000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealing with some cautions.

 

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Yashpal Mehta

Designation :

Finance Executive

Date :

06.03.2012

 

 

LOCATIONS

 

Registered Office :

5/1, Shreeji House, Behind M J Library Ashram Road, Ahmedabad – 380006, Gujarat, India

Tel. No.:

91-79-26578030

Fax No.:

Not Available

E-Mail :

ymehta@shahalloys.com

info@shahalloys.com,

sujalshah@shahalloys.com,

shreyasparikh@shahalloys.com,

salsteel.ltd@rediffmail.com

saurabh.madaan@salsteel.co.in

sal.investor@salsteel.co.in

Website :

http://www.shahalloys.com

http://www.salsteelltd.com

Location :

Owned

 

 

Corporate Office :

11th Floor, GNFC Info Tower, S. G. Highway, Bodakdev, Near Grand Bhagwati Hotel, Ahmedabad – 380 054, Gujarat, India

Tel. No.:

91-79-66629100

Fax No.:

91-79-66629130

E-Mail :

sujalshah@shahalloys.com

 

 

Factory:

Survey No.245, Village Bharapar, Tal. Gandhidham, District Kutch, Gujarat, India

 

 

Administrative Office/ Branch Office :

Block- 2221/2222, Shah Industrial Estate, Sola-Kalol Road, Santej, Gandhinagar - 382043, Gujarat, India

Tel. No.:

91-2764-661100/ 11

Fax No.:

91-2764-661110/ 286615

Email:

salsteel.ltd@rediffmail.com

 

 

DIRECTORS

 

(AS ON 31.03.2011)

 

Name :

Mr. Rajendra V Shah

Designation :

Chairman and Managing Director

 

 

Name :

Mr. K C Thatoi 

Designation :

Managing Director

 

 

Name :

Mr. Sujal A. Shah

Designation :

Director

 

 

Name :

Mr. Babulal M. Singhal

Designation :

Director

 

 

Name :

Mr. Piyush R. Chandrana

Designation :

Director

 

 

Name :

Mr. Ambalal C Patel

Designation :

Director

 

 

Name :

Mr. Harshad M. Shah

Designation :

Director

 

 

Name :

Mr. Jethabhai M Shah

Designation :

Director

 

 

Name :

Mr. Tejpal S. Shah

Designation :

Director

 

 

Name :

Mr. Shrikant N. Jhaveri (w.e.f. 11.05.2011)

Designation :

Director

 

 

Name :

Mr. Bhaskar Ghosh (w.e.f. 04.07.2011)

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Yashpal Mehta

Designation :

Finance Executive

 

 

Name :

Mr. Saurabh Madaan

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 31.12.2011)

 

Category

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Bodies Corporate

42,959,889

50.56

Sub Total

42,959,889

50.56

 

 

 

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

42,959,889

50.56

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Financial Institutions / Banks

5,000

0.01

Sub Total

5,000

0.01

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

10,927,320

12.86

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

22,317,749

26.27

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

8,462,850

9.96

 

 

 

Any Others (Specify)

293,892

0.35

Non Resident Indians

271,612

0.32

Clearing Members

22,280

0.03

Sub Total

42,001,811

49.43

 

 

 

Total Public shareholding (B)

42,006,811

49.44

 

 

 

Total (A)+(B)

84,966,700

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

 

 

 

Total (A)+(B)+(C)

 

84,966,700

100.00

 

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category “Promoter and Promoter Group”

 

S.
No.

Name of the Shareholder

Details of Shares held

Encumbered shares (*)

 

 

No. of Shares held

As a % of
grand total
(A)+(B)+(C)

No

As a percentage

As a % of
grand total
(A)+(B)+(C) of sub-clause (I)(a)

 

 

 

 

 

 

 

1

Shah Alloys Limited

30,256,989

35.61

30,256,989

100.00

35.61

2

SAL Care Private Limited

12,702,900

14.95

-

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

Total

42,959,889

50.56

30,256,989

70.43

35.61

 

(*) The term “encumbrance” has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

 

 

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category “Public” and holding more than 1% of the total number of shares

S. No.

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

 

 

 

 

1

 Satellite Mercantiles Private Limited

3,566,638

4.20

2

 Gujarat NRE Coke Limited

2,737,682

3.22

 

 

 

 

 

 Total

 

6,304,320

7.42

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Sponge Iron and Ferro Alloy Products.

 

 

Products :

Products Description

 

Item Code No.

 

 

Sponge Iron

3303

Ferro Alloys

3320

Angle

3302

Power

4003

 

 

Terms :

 

Selling :

Cash and Credit (30-60 days)

 

 

Purchasing :

Cash and Credit (30-60 days)

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

 

Sponge Iron

MT

NA

180000

71738.000

Ferro Alloys

MT

NA

61890

12175.000

Rolling Mill

MT

NA

25000

1016.960

Power Plant

MW

NA

40 MW P Hour

95836.990

Iron Ore Fines

--

--

--

31820.987

Coal Fine and Others

--

--

--

10677.720

 

 

GENERAL INFORMATION

 

Customers :

End Users, OEM’s and Industries

 

 

No. of Employees :

1000 (Approximately)

 

 

Bankers :

·         Union Bank of India

Ashram Road, Branch, Ahmedabad, Gujarat, India 

 

·         State Bank of India

·         State Bank of Hyderabad

 

 

Facilities :

Secured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

Loan From Banks

 

 

Working Capital Facilities

Secured by Hypothecation of entire current assets of the company on pari-passu basis with consortium member banks & second charge on fixed assets of the company on Pari-passu basis with consortium member banks subject to first charge on pari-passu basis with Union Bank of India, State Bank of India, State Bank of Saurashtra and State Bank of Hyderabad for their respective term loans. The loan is further secured by personal guarantee of i) Mr. R. V. Shah ii) Mrs. R. R. Shah iii) Mr. J. V. Shah and iv) and Corporate Guarantee of M/s Shah Alloys Limited

 

343.906

569.580

Term Loans

(Installment repayable within one year Rs 62.200 Millions)

(Secured by First Mortgage and Hypothecation on all the Immovable and Movable Assets both present and future by way of First Charge ranking pari passu with charges created / to be created in favour of other institution / banks subject to prior charge on current assets in favour of the company’s bankers for working capital borrowings.

The loan is further secured by personal guarantee of i) Mr. R. V. Shah ii) Mrs. R. R. Shah iii) Mr. J. V. Shah and iv) and Corporate Guarantee of M/s Shah Alloys Limited)

 

1233.641

799.880

Vehicles Loans

 

 

From Bank and Financial Institutions

15.867

24.855

(Loan acquired under the hire purchase scheme are secured against vehicles.)

[Installment repayable within one year

Rs 9.500 Millions]

 

 

 

 

 

Total

 

1593.414

1394.315

 

 

Unsecured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

From Directors

8.319

2.434

Inter-Corporate Loans

(From the Company under the same Management)

800.000

800.000

From Others

70.000

0.000

Deferred Payment Liability in respect of Sales Tax.

13.579

13.578

Short Term Loan from Bank

0.000

3.593

 

 

 

Total

 

891.898

819.605

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Talati and Talati

Chartered Accountant

Address :

Ambica Chambers, Near Old High court, Navrangpura, Ahmedabad – 380009, Gujarat, India

 

 

Associates :

·         Shah Alloys Limited

·         Adarsh Foundation (Charitable Trust)

 

 

CAPITAL STRUCTURE

 

(AS ON 24.09.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

140000000

Equity Shares

Rs. 10/- Each

Rs.1400.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

84966700

Equity Shares

Rs.10/- Each

Rs.849.667 Millions

 

 

 

 

 

 

 

(AS ON 31.03.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

110000000

Equity Shares

Rs. 10/- Each

Rs.1100.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

84966700

Equity Shares

Rs.10/- Each

Rs.849.667 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

849.667

849.667

849.667

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

406.822

404.095

395.814

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1256.489

1253.762

1245.481

LOAN FUNDS

 

 

 

1] Secured Loans

1593.414

1394.315

1674.474

2] Unsecured Loans

891.898

819.605

816.012

TOTAL BORROWING

2485.312

2213.920

2490.486

DEFERRED TAX LIABILITIES

90.023

85.275

78.395

 

 

 

 

TOTAL

3831.824

3552.957

3814.362

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1690.750

1872.353

2063.352

Capital work-in-progress

1693.143

1376.766

1270.829

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
528.529

719.185
764.875

 

Sundry Debtors
125.089

106.856
93.150

 

Cash & Bank Balances
63.417

85.879
168.506

 

Other Current Assets
0.000

0.000
0.000

 

Loans & Advances
325.468

250.281
203.366

Total Current Assets
1042.503

1162.201

1229.897

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditor

533.571

555.926
512.855

 

Other Current Liabilities
51.468

303.679
242.693

 

Provisions
9.533

4.090
9.676

Total Current Liabilities
594.572

863.695
765.224

Net Current Assets
447.931

298.506
464.673

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

5.332

15.508

 

 

 

 

TOTAL

3831.824

3552.957

3814.362

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

3200.910

2984.824

3859.527

 

 

Other Income

23.779

57.413

25.303

 

 

TOTAL                                     (A)

3224.689

3042.237

3884.830

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Increase/(Decrease) in Stocks

37.237

62.389

(106.436)

 

 

Material Consumed

2025.489

1773.142

2657.064

 

 

Manufacturing and Other Expenses

731.892

720.249

780.872

 

 

TOTAL                                     (B)

2794.618

2555.780

3331.500

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

430.071

486.457

553.330

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

221.381

268.772

355.677

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

208.690

217.685

197.653

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

189.072

196.027

186.302

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

19.618

21.658

11.351

 

 

 

 

 

Less

TAX                                                                  (H)

14.732

8.914

(10.283)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

4.886

12.744

21.634

 

 

 

 

 

Less

Prior Period Adjustments

2.159

4.463

2.020

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

115.764

107.483

87.869

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

118.491

115.764

107.483

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

126.165

74.281

130.705

 

TOTAL IMPORTS

126.165

74.281

130.705

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.03

0.10

0.23

 

Expected Sales (2011-12): Rs.3500.000 Millions

 

The above information has been parted by Mr. Yashpal Mehta.

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

571.980

832.820

864.470

Total Expenditure

476.840

720.760

744.400

PBIDT (Excl OI)

95.140

112.060

120.070

Other Income

0.000

0.000

0.000

Operating Profit

95.140

112.060

120.070

Interest

51.920

57.040

54.820

Exceptional Items

0.000

0.000

0.000

PBDT

43.220

55.020

65.240

Depreciation

42.550

47.090

46.710

Profit Before Tax

0.670

7.930

18.540

Tax

0.410

1.310

2.220

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

0.260

6.620

16.320

Extraordinary Items

0.000

(5.960)

(16.250)

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

0.260

0.660

0.070

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
0.15

0.42
0.56

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
0.61

0.73
0.29

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
0.72

0.71
0.34

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.02

0.02
0.01

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
2.45

2.45
2.61

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
1.75

1.35
1.61

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2011

 

31.03.2010

31.03.2009

 

(Rs. In Millions)

 

 

 

 

Sundry Creditors

 

 

 

-          Micro Small and Medium Enterprises

--

--

--

-          Others

533.571

555.926

512.855

 

 

 

 

Total

 

533.571

555.926

512.855

 

 

 

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

Yes

Type of Business

Yes

Line of Business 

Yes

Promoter’s Background 

-----

No. of Employees

Yes

Name of Person Contacted

Yes

Designation of Contact person

Yes

Turnover of Firm for last two years

Yes

Profitability for last three years

No

Reasons for variation <> 20%

-----

Estimation for coming financial year

Yes

Capital in the business

No

Details of sister concerns

-----

Major Suppliers

No

Major Customers

No

Payments Terms

Yes

Export/ Imports Details (If applicable)

-----

Market Information

-----

Litigations that the firm/ Promoters Involved in

-----

Banking details

Yes

Banking Facility Details

No

Conduct of the Banking Account

-----

Buyer visit details

-----

Financials, if provided

-----

Incorporation details is applicable

-----

Last Accounts filed at ROC

-----

Major Shareholders, if available

-----

 

 

CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF:-

 

Particulars

 

31.03.2011

31.03.2010

 

(Rs. In Millions)

 

 

 

Letter of Credit

49.375

122.369

Bank Guarantee Given

2.627

26.565

Corporate Guarantees Given to Banks for Shah Alloys Limited

800.000

800.00

Claim lodged by party not acknowledge by us

50.007

23.490

Disputed Value Added Tax Demand

36.563

0.000

 

 

 

OPERATIONAL OVERVIEW:

 

During the year Net Turnover of the Company has been increased to Rs.3200.900 Millions as compared to previous year’s turnover which was Rs. 2984.800 Millions, an increase of around 7.24%. However, Company’s profits after tax has declined a bit mainly due to the factors like lower prevailing selling price of sponge Iron, increase in price of basic raw materials like Coal and Iron ore, inflationary conditions, cost burdens and shortage of working capital etc.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

 

India has been able to maintain its position as world largest producer of Sponge Iron. Production Capacity in Sponge iron making has also increased over the years. Indian Steel Industry has just come out of recent global economic slowdown. Growth in end-use segments like manufacturing, consumer durables, construction, service sector and agriculture sector have provided good news to Steel Sector. As such, India is expected to maintain its leading position of largest sponge iron producer in the near future also.

 

On the other hand, Indian Ferro alloys Industry, as a part of the core sector, is engaged in supplying crucial intermediates to steel industry. Ferro alloys are used in production of mild steel, carbon steel, special alloy steel and stainless steel in the country. As India’s steel production is increasing year over year; consumption of ferro alloys is also increasing along with it. The industry has already started importing manganese ore in large volumes. In the face of upward growth trend in Steel Industry, scope of growth in above Industries can be said to be very good in the coming years.

 

 

DISCUSSION ON COMPANY’S PERFORMANCE

 

Company’s net revenue has increased from Rs.2984.800 Millions to Rs.3200.900 Millions. However, the net profits of the company have declined from Rs.8.300 Millions to Rs.2.700 Millions. This decline in profits is attributed mainly on account of high cost of raw material and low price realization owing to slack market conditions.

 

Company is basically manufacturing Sponge Iron, Ferro Alloys, MS and SS Angle and Power and the same are being sold in the domestic market. Because of the Captive Power Generation Company has advantage of low power cost per unit of manufacturing.

 

Company is also generating 40 MW Power from Waste Heat Recovery Boiler and Fluidized Bed Combustion Boiler with economic price. Power generated is used for captive consumption and surplus power is sold resulting profit. Around 15MWH Power is being generated from the Kiln waste gases as well which helps in running the plant economically.

 

 

SWOT ANALYSIS OF COMPANY

 

STRENGTH

 

·         Good Industry experience and knowledge of Promoters.

·         Good quality standards.

·         Cost competitiveness.

·         Diverse Supplier Base.

·         Long-standing contracts for purchase of raw materials.

·         Strong product design and development.

·         Skilled, qualified and motivated employees.

·         Captive Power Consumption.

 

WEAKNESSES

 

·         Exposure to raw material price fluctuations.

·         Under-utilization of plant capacity.

·         Dependency on third party for raw material.

 

OPPORTUNITIES

 

·         Unexplored Markets.

·         Ever-growing demand in Steel Industry.

·         Strengthened manufacturing base and the existence of product development and marketing teams.

 

THREATS

 

·         Rising raw material prices.

·         High Cost of Capital.

·         Constraint of Raw Material availability.

·         Global economic slowdown.

·         Unremunerative Prices.

·         Unforeseen general macro-economic factors and political turmoil.

 

 

FUTURE OUT LOOK:

 

To avoid volatility and to ensure consistent supplies of good quality raw materials, Company is focusing on establishing long term tie-ups with renowned suppliers of the country like NMDC, Orissa (for Iron Ore), MOIL (for Manganese Ore), OMCL (for Chrome Ore) etc. Efforts are also being made to set up arrangements with GMDC, Gujarat for meeting basic raw material requirements. Also, Company is deciding to set up its own pelletising plant to manufacture Iron Ore pellets to be used in Sponge Iron production. This can result into better yield and will save the costs as well. Furthermore, sponge iron pellets can be profitably exported as well with nil export duty. With effective use of Power plants to its fullest capacity, maximum capacity utilisation of Ferro Alloys plant is being targeted.

 

 

FIXED ASSETS:

 

·         Freehold Land

·         Factory Building

·         Plant and Machinery

·         Computers

·         Office Equipment

·         Furniture and Fixture

·         Vehicles

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.50.02

UK Pound

1

Rs.79.01

Euro

1

Rs.66.18

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--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

 

27

 

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

 

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.