|
Report Date : |
15.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
ASIAN PPG INDUSTRIES LIMITED (w.e.f. 30.06.1997) |
|
|
|
|
Formerly Known
As : |
ASIAN PPG INDUSTRIES PRIVATE LIMITED |
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|
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Registered
Office : |
6-A, Shanti Nagar Estate, Santacruz (East), Mumbai – 400 055, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
19.02.1997 |
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Com. Reg. No.: |
11-105961 |
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Capital
Investment / Paid-up Capital : |
Rs.292.500 millions |
|
|
|
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CIN No.: [Company Identification
No.] |
U24200MH1997PLC105961 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA11672D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer, Exporter and Importer of
Automobile Parts Components Paints and Power Varnishes. |
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|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6971000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 regular
and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED
Management non-cooperative
LOCATIONS
|
Registered Office : |
6-A, Shanti Nagar Estate, Santacruz (East), Mumbai – 400 055, |
|
Tel. No.: |
91-22-66958000 |
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Fax No.: |
91-22-66958888 |
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E-Mail : |
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Website : |
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|
Area : |
3500 sq.ft. |
|
Location : |
Owned |
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|
|
|
Head Office : |
158, Vidyanagri Marg, CST Road, Dani Wooltex Compound, Kalina,
Santacruz (East), Mumbai – 400 098, Maharashtra, India. |
|
Tel. No.: |
91-22-30568700/ 8800 |
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Fax No.: |
91-22-30568764/ 26528044 |
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E-Mail : |
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Factory : |
v
APPG – Ankleshwar, 2602, GIDC Industrial
Estate, Ankleshwar - 393 002, v
APPG – LBS Marg, Post Box No.7318, Bhandup, Mumbai-400
078, v APPG - A -1, UPSIDC Industrial Area, Kasna II Village, greater Noida , District G Budh Nagar Noida – 203 207, Uttar Pradesh, India v
APPG , P I Nos.50-55, industrial Development
Area, Phase–II, Patancheru , District Medak,
Also located at: v
Chakan in Pune v
|
DIRECTORS
As on 20.05.2011
|
Name : |
Mr. Ashwin Suryakant Dani |
|
Designation : |
Director |
|
Address : |
48, Home Villa Co-operative Society Limited, Krishna Sanghi Path,
Mumbai – 400 007, |
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Date of Birth/Age : |
24.10.1942 |
|
Date of Appointment : |
01.08.1997 |
|
DIN No.: |
00009126 |
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|
|
|
Name : |
Mr. Manish Mahendra Choksi |
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Designation : |
Director |
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Address : |
402, Shivtirth No.2, |
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Date of Birth/Age : |
09.12.1967 |
|
Date of Appointment : |
08.08.2007 |
|
DIN No.: |
00026496 |
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|
|
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Name: |
Ms. Cynthia Ann Niekamp |
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Designation: |
Director |
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Address: |
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|
Date of Birth/Age : |
13.05.1959 |
|
Date of Appointment : |
22.03.2009 |
|
DIN No.: |
02789698 |
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|
|
|
Name : |
Mr. John R. Alexander |
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Designation : |
Director |
|
Address : |
403, |
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Date of Birth/Age : |
31.08.1955 |
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Date of Appointment : |
02.11.2004 |
|
|
|
|
Name : |
Mr. Viktoras R. Sekmakas |
|
Designation : |
Alternate Director to Mr. John R. Alexander |
|
Address : |
House D7, |
|
Date of Birth/Age : |
04.04.1960 |
|
Date of Appointment : |
02.11.2004 |
|
|
|
|
Name : |
Mr. Mike Horton |
|
Designation : |
Alternate Director to Ms. Cynthia Ann Niekamp |
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Address : |
House 72, |
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Date of Birth/Age : |
20.03.1959 |
|
Date of Appointment : |
22.03.2009 |
KEY EXECUTIVES
|
Name : |
Mr. Sagar Shrikrishna Khade |
|
Designation : |
Secretary |
|
Address : |
B-14, Golden Rock CHS, Sunder Nagar, Kalina, Mumbai – 400 098, |
|
Date of Birth/Age : |
06.05.1979 |
|
Date of Appointment : |
03.02.2006 |
|
PAN No.: |
AHXPK5536D |
|
|
|
|
Name : |
Mr. Abhijit Majumdar |
|
Designation : |
Financial Controller and Head of HR |
|
Date of Birth/Age : |
40 Years |
|
Qualification : |
CA, CWA |
|
Date of Appointment : |
04.08.2003 |
|
|
|
|
Name : |
Dr. Sudhir Deshpande |
|
Designation : |
Chief Manager – Product Development Auto Refinish |
|
Date of Birth/Age : |
47 Years |
|
Qualification : |
Ph.D (Tech.) |
|
Date of Appointment : |
20.05.2008 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 20.05.2011
|
Names of Shareholders |
|
No. of Shares |
|
Asian Paints Limited, |
|
14624997 |
|
PPG Industries Securities Inc., |
|
14624997 |
|
PPG Industries Securities Inc jointly with PPG Coatings (Hong Kong)
Company Limited, |
|
1 |
|
PPG Industries Securities Inc jointly with PPG Coatings ( |
|
1 |
|
PPG Industries Securities Inc jointly with PPG ( |
|
1 |
|
Asian Paints Limited, |
|
1 |
|
Asian Paints Limited, |
|
1 |
|
Asian Paints Limited, |
|
1 |
|
Total
|
|
29250000 |
As on 20.05.2011
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
50.00 |
|
Bodies
corporate |
|
50.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Exporter and Importer of Automobile Parts Components
Paints and Power Varnishes. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production (kl) |
|
Paints and Coatings |
KL |
10400.00 |
4200.00 |
2331.50 |
|
Paints and Coatings* |
KL |
Not Applicable |
Not Applicable |
15697.35 |
* produced by outside processors
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
v
State
Bank of v
State
Bank of v
State
Bank of India, Corporate Accounts
Group, Central Office, Express Towers, 20th Floor, Nariman Point, Mumbai
– 400 021, Maharashtra, India v
State Bank of India, Corporate Accounts Group
Branch, Voltas House, 23, J.N. Heredia Marg, Mumbai – 400 001, Maharashtra,
India |
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Facilities : |
Note: Secured by first charge on movable assets and book debts.
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Banking
Relations : |
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|
|
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Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, |
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Tel. No.: |
91-22-66679000 |
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Fax No.: |
91-22-66679025 |
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PAN No.: |
AADFD2337G |
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|
|
|
Venturers : |
v Asian paints Limited v PPG Industries Securities, Inc. |
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|
|
|
Subsidiaries : |
v
Faaber Paints Private limited (CIN No.:U24222TN1986PTC012894) |
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|
|
|
Holding company
of a venturer : |
PPG Industries, Inc. |
|
|
|
|
Subsidiary
company of a venturer : |
PPG India Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs.400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29250000 |
Equity Shares |
Rs.10/- each |
Rs.292.500
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
292.500 |
292.500 |
292.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1450.340 |
1165.150 |
1020.840 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1742.840 |
1457.650 |
1313.340 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
278.800 |
463.470 |
515.800 |
|
|
2] Unsecured Loans |
150.000 |
82.430 |
0.000 |
|
|
TOTAL BORROWING |
428.800 |
545.900 |
515.800 |
|
|
DEFERRED TAX LIABILITIES |
58.290 |
51.440 |
17.370 |
|
|
|
|
|
|
|
|
TOTAL |
2229.930 |
2054.990 |
1846.510 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
685.250 |
656.120 |
518.100 |
|
|
Capital work-in-progress |
5.280 |
0.460 |
30.430 |
|
|
|
|
|
|
|
|
INVESTMENT |
40.100 |
40.100 |
50.120 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1047.540
|
771.100
|
852.310
|
|
|
Sundry Debtors |
866.670
|
805.570
|
757.680
|
|
|
Cash & Bank Balances |
47.400
|
46.220
|
52.110
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
440.360
|
311.700
|
389.800
|
|
Total
Current Assets |
2401.970
|
1934.590
|
2051.900
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
701.070
|
445.940 |
608.070 |
|
|
Other Current Liabilities |
173.040
|
107.340
|
127.460
|
|
|
Provisions |
28.560
|
23.000
|
68.510
|
|
Total
Current Liabilities |
902.670
|
576.280
|
804.040
|
|
|
Net Current Assets |
1499.300
|
1358.310
|
1247.860
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2229.930 |
2054.990 |
1846.510 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Turnover (Net) |
4435.350 |
3727.360 |
3823.320 |
|
|
|
Other Income |
69.560 |
15.580 |
22.560 |
|
|
|
TOTAL (A) |
4504.910 |
3742.940 |
3845.880 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
(Increase)/Decrease in stocks of finished
goods and work-in-progress |
(150.920) |
71.020 |
(1.610) |
|
|
|
Purchase of trading goods |
602.040 |
535.830 |
561.530 |
|
|
|
Manufacturing and Other Expenses |
3556.450 |
2780.920 |
2709.650 |
|
|
|
TOTAL (B) |
4007.570 |
3387.770 |
3269.570 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
497.340 |
355.170 |
576.310 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
23.950 |
37.980 |
22.030 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
473.390 |
317.190 |
554.280 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
52.890 |
47.300 |
43.090 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
420.500 |
269.890 |
511.190 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
134.700 |
112.850 |
181.840 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
285.800 |
157.040 |
329.350 |
|
|
|
|
|
|
|
|
|
|
Short provision for tax in respect of earlier years (net) |
(0.610) |
(12.730) |
-- |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1031.150 |
886.840 |
621.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
-- |
-- |
40.950 |
|
|
|
Corporate Dividend Tax |
-- |
-- |
6.960 |
|
|
|
Transfer to General Reserve |
-- |
-- |
16.500 |
|
|
BALANCE CARRIED
TO THE B/S |
1316.340 |
1031.150 |
886.840 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY (FOB VALUE OF EXPORTS) |
6.260 |
11.250 |
1.370 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1208.860 |
799.670 |
623.870 |
|
|
|
Capital Goods |
5.440 |
11.150 |
20.120 |
|
|
|
Others |
598.900 |
529.820 |
422.900 |
|
|
TOTAL IMPORTS |
1813.200 |
1340.640 |
1066.890 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
9.75 |
4.93 |
11.26 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.34
|
4.20
|
8.56
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.48
|
8.51
|
14.11
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.62
|
10.75
|
19.89
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networh) |
|
0.24
|
0.19
|
0.39
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.76
|
0.77
|
1.00
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.66
|
3.36
|
2.55
|
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
- total outstanding dues to micro enterprises and small enterprises |
-- |
-- |
-- |
|
- total
outstanding dues to creditors other than micro enterprises and small
enterprises |
701.070 |
445.940 |
608.070 |
|
Total |
701.070 |
445.940 |
608.070 |
OPERATIONS DURING THE YEAR
Riding on uptrend in purchasing power, cheaper financing and higher
disbursement by public sector banks, CENVAT cuts as part of the government’s fiscal
incentive packages, domestic sales of passenger vehicles grew by 25% during the
year 2009-2010. Automakers supported this performance by introducing new models
and offering attractive pricing. Exports too complimented the domestic growth
story by registering a growth of 33%.
Overall, growth in passenger vehicle builds was at an impressive 28%. To
gain share in a fiercely competitive market, car companies steadily improved
specifications and upgraded the coatings that went on cars. Market for automotive
OE coatings benefited from all these positive developments.
The impact of continuing efforts by customers to costs and rising raw
material costs was arrested through product development, formulation
efficiency, effective sourcing, substitution and cost reduction measures. These
developments have resulted in improved topline performance during the year.
Total gross sales after discounts but before excise
Duty increase to Rs.4768.820 Millions from Rs.4209.350 Millions in the
previous year a growth of 13.03%. The profit after tax jumped to Rs.285.800
millions from Rs.157.040 millions representing a rise of 82%
The consolidated sales were Rs.4903.940 millions and the profit after
tax was Rs.300.600 millions.
SUBSIDIARY
Faaber Paints Private Limited (FPPL), a wholly owned subsidiary of the
Company, reported Profit Before Tax of Rs.21.340 millions this year as compared
to Rs.2.810 millions for the financial year ended 31st March 2009.
The sales grew by 35.8% Rs.150.060 millions as against Rs.110.490 millions
benefiting from the demand revival in the automotive sector during the year.
MANUFACTURING
FACILITY
The Company’s first manufacturing facility was commissioned in March
2008. While the licensed capacity of the facility is 10,400 KL per annum, the
present installed capacity is 4,200 KL per annum. The directors are confident
that this facility will help the Company provide better service to its
customers.
PROSPECTS
The outlook for
2010-2011 appears to be positive but nevertheless challenging. The Indian
economy is expected to register growth of 8% in 2010-2011. With local
automotive players showing global ambitions and influx of global OEMs and Tier
1 manufacturers, consumer demand is expected to get further boost. However,
rising commodity prices coupled with likely withdrawal of fiscal incentives
package by the government and the resulting high inflation could lead to
tightening of monetary conditions. This can have an adverse impact on demand,
particularly in interest sensitive sectors like automobiles.
2009-10 saw the
automobile industry grow by 28% primarily as a result of low base effect. While
a repetition of such a performance is unlikely in the current year, the
directors feel that the business will continue to see good growth and remain
optimistic about the prospects in the current year and into the future. The
directors also believe that the company’s strategy of offering better value
through closely tailoring its offerings to customer requirements and providing
superior service will help grow the company’s share of the market and to
maintain performance.
CONTINGENT
LIABILITIES IN RESPECT OF:
|
Particulars |
31.03.2010 (Rs. in
millions) |
|
a. Sales tax
demands disputed in appeals These relate to non-
submission of C and F forms and dispute as regards classification of goods
(pending at various stages, from Assistant Commissioner (Appeal) to the High
Court) |
120.240 |
|
b. Income Tax
demand disputed in appeal (mainly relating
to matters like disallowances of interest expenses etc. (pending before the
Income Tax Appellate Tribunal as at 31st March, 2009) |
-- |
|
c. Guarantee given to a bank on behalf of subsidiary |
21.400 |
Note:
With regard to matters
(a) above, the Company is hopeful of succeeding and as such does not expect any
significant liability to crystallize.
FIXED ASSTES:
Tangible Assets
v Leasehold land
v
v Plant and Machinery
v Computers
v Furniture and Fixtures
v Office Equipments
Intangible Assets
v
Dealership network
v
Customer list
v
Shade formulations
v
Motor manufacturers approval
v
Technical know-how
v
Software
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.49.90 |
|
|
1 |
Rs.78.15 |
|
Euro |
1 |
Rs.65.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.