MIRA
INFORM REPORT
|
Report Date : |
12.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
LAKSHMI PRECISION SCREWS LIMITED |
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Registered
Office : |
46/1, Mile
Stone, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
27.12.1968 |
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Com. Reg. No.: |
05-004977 |
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Capital
Investment / Paid-up Capital : |
Rs.109.417 Millions |
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CIN No.: [Company Identification
No.] |
L35999HR1968PLC004977 |
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IEC No.: |
3393002155 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
RTKL00578E |
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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
: |
Manufacturer of machine screws, SHCS, CSK, BHCS, SSS, HHB,
HHS, H. Nuts and Allen Key. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit
Limit : |
USD 3782896 |
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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 as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered /
Factory 1 : |
46/1, Mile
Stone, |
|
Tel. No.: |
248288
/ 248289 / 249920/ 248790 / 249923 / 248092/248793 / 248894 |
|
Fax No.: |
91-262-248297/248695/248863/270334/248948/249922 |
|
E-Mail : |
lps_screws@sm3.sprintrpg.ems.vsnl.net.in |
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Website : |
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Corporate Office |
501 A and 501 B, 5th Floor, Tower-A, Millennium Plaza, Gurgaon, India |
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Tel No.: |
91-124 – 4200492 |
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Branch Office : |
Address
: 146, New Cycle Market, Jhandewalan Extension, New Delhi-110 055, Tel:
91-11 –23527642 Mumbai Address
: 153-Wing-A, Mittal Tower, Nariman Point, Mumbai - 400 021, Tel:
91-22-56370984-85 Kolkata Address
: 8, Tel:
91-33-22310754 Address
: 305-A, Mittal Tower, 3rd Floor, Tel:
91-80-25588587 Pune Address
: 40, Rahul Chambers, Kasar Wadi, Pune – 411 034, Tel.
No.: 91-20-27145231 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr.
Lalit Kumar Jain |
|
Designation : |
Chairman
and Managing Director |
|
Address : |
C/o. Nav Bharat House, |
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Qualification : |
B.E. |
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|
Name : |
Mr.
Dinesh Kumar Jain |
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Designation : |
Vice
Chairman and Managing Director |
|
Address : |
764/28, Bharat Colony, |
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Qualification : |
B.Com |
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Name : |
Mr.
Vijay Kumar Jain |
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Designation : |
Joint
Managing Director |
|
Address : |
C/o. Nav Bharat House, |
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Qualification : |
B.A. |
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|
Name : |
Mr.
Rajesh Jain |
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Designation : |
Director |
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Qualification : |
B.E. (Technical) |
|
Other
Directorships : |
Indian Fasteners Limited – Director Sudhir Automotive Industries
Private Limited – Director LPS Fasteners and Wires
Private Limited – Director Amit Screws Private Limited –
Director J C Fasteners Limited –
Director LPS Bossard Private Limited –
Director LPS Bossard Information
Systems Private Limited – Director C/o. Nav Bharat House, |
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|
Name : |
Mrs.
Sushila Devi Jain |
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Designation : |
Director |
|
Address : |
C/o. Nav Bharat House, |
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Qualification : |
Matriculate |
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Name : |
Mr.
Jamshedji Rustomji Desai |
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Designation : |
Director |
|
Address : |
C-37, Pamposh Enclave, |
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Qualification : |
M. E. Graduate |
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|
Name : |
Mr.
Keshwa Nand Rattan |
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Designation : |
Director |
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|
Name : |
Mr.
Ajay Kumar Chakraborty |
|
Designation : |
Director |
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|
Name : |
Mr. Bhupendranath Vidyanath Bhargava |
|
Designation : |
Director |
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Name : |
Mr. Bhagwan Das Narang |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Naveen Kakkar |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
AS ON 31.03.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
|
|
|
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(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
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|
6880287 |
62.88 |
|
|
30733 |
0.28 |
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(B) Public
Shareholding |
|
|
|
|
|
|
|
|
900700 |
8.23 |
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|
1925 |
0.02 |
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|
1250 |
0.01 |
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|
|
|
|
|
|
|
|
|
362168 |
3.31 |
|
|
|
|
|
|
2118.632 |
19.36 |
|
|
592334 |
5.41 |
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|
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|
2150 |
0.02 |
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|
51488 |
0.47 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
|
|
|
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Total |
10941667 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 1 lakh
BUSINESS DETAILS
|
Line of Business
: |
Manufacturing of machine screws, SHCS, CSK, BHCS, SSS,
HHB, HHS, H. Nuts and Allen Key. |
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Products : |
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Brand Names : |
‘LPS’ |
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Exports : |
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Products : |
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Countries : |
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
L/C or Credit [90 days] |
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Purchasing : |
L/C or Credit [90 days] |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
#Licensed
Capacity |
# #Installed
Capacity |
@Actual
Production |
|
High Tensile Fasteners |
M Tons |
23146 |
19148 |
(8505) |
Note:
# Not required for the industry.
# # Installed capacity is as certified by the management.
@ Actual production is on the basis of raw materials
consumed less scrap material.
GENERAL INFORMATION
|
Customers : |
Wholesalers and OEM’s |
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No. of Employees
: |
Not Available |
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Bankers : |
· Canara Bank, Rohtak. · Indian Overseas Bank, Rohtak. ·
IDBI Bank Limited, New Delhi. |
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Facilities : |
Notes: 1 (i) The Working Capital limits from consortium banks are secured
by way of pari passu first charge against hypothecation of entire chargeable
current assets i.e stock and book debts (present and future) of the Company
and pari passu second charge on fixed assets of the Company consisting of
land and building, plant and machinery and other fixed assets (present and
future) and guaranteed by some of Directors of the Company and their
relatives. Working capital limits from consortium banks are further secured
by way of equitable mortgage of (i) Land and Building situated at Rohtak in the name of Director
of the Company, and (ii) Land and Building situated at Mauza Kharawar, Tehsil
Sampla, Distt. Rohtak in the names of relatives of the Directors of the
Company. (iii) Cash Credit/Short Term Loan limits from ICICI Bank Limited
is secured by first charge by way of hypothecation of Company’s entire stocks
of raw materials, semi-finished and finished goods, consumables stores and
such other moveables, including book-debts. Bills whether documentary or
clean, outstanding monies, receivables both present and furture in a form and
manner satisfactory to the bank, ranking pari-passu with other participating
banks: second mortgage and charge on all the Company’s immoveable properties
and fixed assets, both present and furture ranking pari-passu with other
participating bank and unconditional and irrevocable guarantees of some of
Directors of the Company. 2 (i) Working capital term loan, short term loan and term loan
from Canara Bank are secured by way of hypothecation of entire chargeable
current assets (present and future) of the Company and further secured by way
of collateral securities as applicable to working capital limits from the
bank as mentioned in para 1 above and personal guarantee of some of Directors
of the Company and their relatives. (ii) The Company has been sanctioned fresh term loan of
Rs.105.000 Millions by the Canara bank which is secured by way of pari passu
first charge with other consortium members on existing tools and dies worth Rs.250.000
Millions and further secured by way of collateral securities as applicable to
working capital limits as mentioned in para 1 above . (iii) Term loan from IDBI is secured by way of first pari-passu
charge on the entire fixed assets of Company and guaranteed by one of the
Directors of the Company. (iv) Term Loan from Indian Overseas Bank is secured by way of
first charge on machinery purchased out of the said loan. 3 Foreign Currency term loan from ICICI Bank Limited is secured
by way of first pari-passu charge on entire fixed assets of the Company both
present and future and is further secured by second pari-passu charge by way
of hypothecation of the entire stocks of raw materials, semi-fi nished and
finished goods, consumables stores and spares and such other movables
including book-debts, bills whether documentary or clean, outstanding monies,
receivables both present and future and unconditional and irrevocable
personal guarantees of some of the Directors of the Company and their
relatives. 4 Deferred payment credit from Haryana State Industrial and
Infrastructure Development Corporation Limited is secured against Plot No.
153, Sector-3 allotted to the Company at IMT Manesar, Gurgaon. 5 Term loans and deferred payment credits due within a year are
Rs.162.500 Millions (Previous year Rs.161.000 Millions).
* under stipulations of
lending financial institutions and banks.
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Banking
Relations : |
---- |
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|
Auditors : |
V.
R. Bansal and Associates Chartered
Accountants |
|
Address : |
Noida,
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Subsidiaries : |
Indian Fasteners Limited |
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|
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|
Associates : |
· Amit Screws Private Limited · Hanumat Wire Udyog Private Limited · J C Fasteners Limited · LPS Bossard Private Limited (Joint Venture) · LPS Bossard Information Systems Private Limited (Joint Venture) · Lakshmi Extrusion Limited · LPS Fasteners and Wires Private Limited · Nav Bharat Industries · Nav Bharat Agencies · Shiv Industries · Swadesh Engineering Industries · Sudhir Automotive Industries Private Limited · United Engineers ·
Universal Enterprises |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14970000 |
Equity shares |
Rs.10 each |
Rs.149.700 millions |
|
30000 |
9.5% Cumulative Redeemable Preference shares |
Rs.10 each |
Rs.0.300 million |
|
|
Total |
|
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10941667 |
Equity shares |
Rs.10 each |
Rs.109.417 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 |
109.417 |
109.417 |
109.417 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
836.307 |
765.626 |
717.645 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
945.724 |
875.043 |
827.062 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1380.782 |
1138.544 |
1152.749 |
|
|
2] Unsecured Loans |
77.574 |
60.062 |
40.207 |
|
|
TOTAL BORROWING |
1458.356 |
1198.606 |
1192.956 |
|
|
DEFERRED TAX LIABILITIES |
33.318 |
18.225 |
33.694 |
|
|
|
|
|
|
|
|
TOTAL |
2437.398 |
2091.874 |
2053.712 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
907.246 |
58.979 |
620.885 |
|
|
Capital work-in-progress |
11.169 |
5.180 |
10.428 |
|
|
|
|
|
|
|
|
INVESTMENT |
42.737 |
42.737 |
42.737 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1737.238
|
1547.848
|
1291.520
|
|
|
Sundry Debtors |
632.878
|
535.351
|
516.714
|
|
|
Cash & Bank Balances |
90.983
|
97.168
|
67.623
|
|
|
Other Current Assets |
47.485
|
19.854
|
26.719
|
|
|
Loans & Advances |
204.342
|
159.588
|
164.840
|
|
Total
Current Assets |
2712.926
|
2359.809
|
2067.416 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
894.636
|
636.093
|
506.471
|
|
|
Current Liabilities |
306.548
|
224.273
|
156.642
|
|
|
Provisions |
39.184
|
47.003
|
27.092
|
|
Total
Current Liabilities |
1240.368
|
907.369
|
690.205
|
|
|
Net Current Assets |
1472.558
|
1452.440
|
1377.211
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
3.688 |
1.729 |
2.451 |
|
|
|
|
|
|
|
|
TOTAL |
2437.398 |
2091.874 |
2053.712 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
3059.740 |
2279.772 |
2240.074 |
|
|
|
Joint Work Receipts |
11.815 |
2.182 |
1.072 |
|
|
|
Other Income |
64.682 |
16.112 |
24.956 |
|
|
|
TOTAL (A) |
3136.237 |
2298.066 |
2266.102 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials and Finished Goods75526 |
1283.875 |
862.975 |
958.397 |
|
|
|
Manufacturing |
542.656 |
440.425 |
396.637 |
|
|
|
Personnel |
463.100 |
377.383 |
330.969 |
|
|
|
Office and Administration |
165.177 |
114.208 |
139.311 |
|
|
|
Selling and Distribution |
163.435 |
112.595 |
103.851 |
|
|
|
Managerial Remuneration |
27.602 |
27.602 |
24.002 |
|
|
|
TOTAL (B) |
2645.845 |
1935.188 |
1953.167 |
|
|
|
|
|
|
|
|
Add |
PRIOR PERIOD ITEMS |
10.950 |
0.324 |
8.573 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
501.342 |
363.203 |
321.508 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
183.465 |
153.428 |
163.054 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
317.877 |
209.775 |
158.454 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
181.168 |
123.908 |
92.982 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
136.709 |
85.567 |
65.472 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
47.908 |
32.806 |
30.465 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
88.801 |
52.761 |
35.007 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
414.350 |
374.389 |
347.063 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
4.500 |
0.000 |
0.000 |
|
|
|
Dividend |
16.412 |
10.941 |
6.565 |
|
|
|
Tax on Dividend |
2.662 |
1.859 |
1.116 |
|
|
BALANCE CARRIED
TO THE B/S |
479.577 |
414.350 |
374.389 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
511.900 |
355.300 |
609.900 |
|
|
TOTAL EARNINGS |
511.900 |
355.300 |
609.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
328.100 |
163.300 |
196.000 |
|
|
|
Stores & Spares |
45.800 |
6.000 |
22.600 |
|
|
|
Capital Goods |
124.100 |
12.500 |
89.900 |
|
|
|
Others |
51.500 |
29.300 |
37.300 |
|
|
TOTAL IMPORTS |
549.500 |
211.100 |
345.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.12 |
4.82 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
791.240 |
833.420 |
864.590 |
|
Total Expenditure |
668.320 |
687.830 |
715.380 |
|
PBIDT (Excl
OI) |
122.920 |
145.590 |
149.210 |
|
Other Income |
17.900 |
9.540 |
13.260 |
|
Operating
Profit |
140.82 |
155.130 |
162.470 |
|
Interest |
54.030 |
73.790 |
90.210 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
86.790 |
81.340 |
72.260 |
|
Depreciation |
53.340 |
54.320 |
58.340 |
|
Profit
Before Tax |
33.460 |
27.020 |
13.920 |
|
Tax |
11.610 |
7.900 |
(1.920) |
|
Reported PAT |
21.850 |
19.120 |
15.840 |
|
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 |
21.850 |
19.120 |
15.840 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.83
|
2.29
|
1.54
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.47
|
3.75
|
2.92
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.77
|
3.55
|
2.44
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.10
|
0.08
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.85
|
2.41
|
2.28
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.19
|
2.60
|
3.00
|
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
During the financial year 2010-11 the Company has achieved
turnover of Rs.3059.700 Millions (Previous year Rs.2279.800 Millions),
recording an growth of 34%. During the year net profit of the Company has
increased to Rs.88.802 Millions from Rs.52.761 Millions, recording an increase
of 68% over the previous year.
Supply of fasteners to replacement and original equipment
segments, wherein the Company holds a key position, continue to be the area of
focus of the Company. In order to meet the increased demand, the Company has
sufficient installed capacity. The Company continue to follow its philosophy to
provide the high quality products at the lowest cost, coupled with excellent
customer services. The market is witnessing fierce competition. All efforts
were made under Total Quality Management, Total Productivity Management and Six
Sigma Umbrella to continuously improve the cost, quality, delivery and
competitiveness.
The Company’s products are well accepted in the market. In brief, all
customers of the Company are on growth path and Company is confident to meet
their increased demand. The volume growth in domestic market is expected to be
in the region of 35% for 2011-12.
MANAGEMENT
DISCUSSTION
OPPORTUNITIES AND
THREATS
a) Opportunities
The major strength of the Indian auto component industry is their
skill in areas such as engineering, re-designing manufacturing process and
designing products at lower cost. India’s advanced tooling and machining
industries have enabled localization of capital equipment and reduced capital
cost. The Indian auto component industry has the opportunity to play a major
role in the global auto component industry with its existing infrastructure at
a lower
cost with better quality and short delivery time for supplies to
customers. Increase in demand of all types of vehicles are primarily triggered
by two factors namely a) Increase in disposable incomes b) liberal policies of
government of India related to automobiles industry in India. Based on these
growth trends in Automobiles Industry, it can be concluded that future of
fasteners industry has good opportunity in view of the present growth
environment.
b) Threats
There are certain weaknesses that the Indian manufacturing
industry is confronting which includes lack of scale of operations, inadequate
and poor quality of infrastructure.
These weaknesses are directly or indirectly affecting the
performance of the Indian auto component industry. A stable Government at
centre also improves the market sentiment by giving the excise relief to the
industry. With this the Industry also wants easier and cheaper credit, which
will drive automobile sales.
Higher inflation will also increase the cost of funds to the
Company. Further rising input cost and power cost is another area of concern
which would consequently keep pressure on profit margins.
FUTURE OUTLOOK
With a democratically elected Government in place and relatively
stable government, Company expects continuation of the same economic and
industrial policies. Meanwhile the Government at the centre is focusing on
building basic infrastructure (roads, express ways etc.) which will also drive
the demand for automobile. The global economy also treading the recovery path
and the future of the domestic and international markets seems positive in
medium term.
Considering the measures taken/ planned by the Central Government
to boost the economy as well as the various steps taken by the Company and
further plans and strategies drawn, the Company is positively expecting to
improve its performance. The Company is also growing with the industry growth.
It is good to see that all their customers are indicating increased volume in
production and new entrants are opting for the Company as a major source for
their new models. As such, the outlook for the financial year 2011-12 is
looking promising.
They are pleased to inform you that the Company is enjoying deep
penetration in all major OEMs like Maruti Suzuki, Tata Motors, HMSI, TVS
Motors, John Deere, Mahindra and Mahindra, Volvo, etc. The success in
developing cold forged components which the Company has recently ventured into,
will bring in more and more domestic and international customers who want to
switch over to cold forged components and put us in their prospective supplier
list. In the age of competitive environment, Six Sigma is perceived as an
important tool to improve processes or operations to maximize gain/reduce cost
and enhance customer satisfaction. It will have a long-term benefit in helping
the Company to achieve its goals and scale new heights in the growth path..
FIXED ASSETS :
v
v Factory Buildings
v Office Premises – Leasehold and Freehold
v Plant and Machinery
v Effluent Treatment Plant
v Furniture and Fixtures
v Electric Fittings and Installations
v Office Equipments
v Computer and Computer Software
v Vehicles
v Weighing Scales
v Fire Extinguishers
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.46.75 |
|
|
1 |
Rs.70.92 |
|
Euro |
1 |
Rs.59.36 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.