MIRA
INFORM REPORT
|
Report Date : |
20.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
WELSPUN SYNTEX LIMITED |
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Registered
Office : |
Survey No.394 (P), Village Saily, Silvassa, Union |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
31.03.1983 |
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Com. Reg. No.: |
56-000045 |
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Capital
Investment / Paid-up Capital : |
Rs.339.147 Millions |
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|
CIN No.: [Company Identification
No.] |
L99999DN1983PLC000045 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
SRTW00080D MUMW02090E MUMM25361A |
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PAN No.: [Permanent Account No.] |
AAACW0489L |
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Legal Form : |
Public Limited Liability
Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Synthetic Yarn. |
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No. of Employees
: |
1500
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 2969000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an
established company having moderate track. Trade relations are reported as
fair. Business is active. Payments are reported to be slow but correct. The company can
be considered for small business dealings with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory 1 : |
Survey No.394 (P), Village Saily, Silvassa, Union |
|
Tel. No.: |
91-260-2640596/ 2640599 |
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Fax No.: |
91-260-2640597 |
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E-Mail : |
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Website : |
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Corporate Office : |
9th Floor, Trade World, “B” Wing, Kamala Mills Compound,
Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India |
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Tel No.: |
91-22-24908000/ 01/ 02/ 03 /04/ 66136000 |
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Fax No.: |
91-22-24908020/ 21 |
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E-Mail : |
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Factory 2 : |
Palghar Plant: Plot No.14/15, Dewan Industrial Estate, Palghar, District Thane, |
|
Tel. No.: |
952525-252772/ 252662 |
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Fax No.: |
952525-252988 |
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Marketing Office : |
3001/3002, 3rd Floor, |
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Tel. No.: |
91-261-2327863/ 2336125 |
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Fax No.: |
91-261-2312604 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. B.K. Goenka |
|
Designation : |
Chairman |
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|
Name : |
Mr. R.R. Mandawewala |
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Designation : |
Director |
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Name : |
Mr. B.A. Kale |
|
Designation : |
Executive Director (with effect from 30.10.2010) |
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|
Name : |
Mr. Murarilal Mittal |
|
Designation : |
Director (upto 14.02.2011) |
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Name : |
Mr. Atul Desai |
|
Designation : |
Director |
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|
Name : |
Mr. Raj Kumar Jain |
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Designation : |
Director |
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Name : |
Mr. M.K. Tandon |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Nilesh Javker |
|
Designation : |
Assistant Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
|
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|
35,429 |
0.15 |
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|
8,869,677 |
37.51 |
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|
8,905,106 |
37.66 |
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Total shareholding of Promoter and Promoter Group (A) |
8,905,106 |
37.66 |
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(B) Public Shareholding |
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|
105 |
- |
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|
9,395,624 |
39.74 |
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|
228,837 |
0.97 |
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|
- |
- |
|
|
9,624,566 |
40.70 |
|
|
|
|
|
|
618,953 |
2.62 |
|
|
|
|
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2,878,492 |
12.17 |
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|
1,174,090 |
4.97 |
|
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443,820 |
1.88 |
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|
193,566 |
0.82 |
|
|
59,502 |
0.25 |
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|
4,802 |
0.02 |
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|
185,950 |
0.79 |
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|
5,115,355 |
21.63 |
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Total Public shareholding (B) |
14,739,921 |
62.34 |
|
Total (A)+(B) |
23,645,027 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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|
- |
- |
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|
- |
- |
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|
- |
- |
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Total (A)+(B)+(C) |
23,645,027 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Synthetic Yarn. |
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Products: |
v
Polyester
Partially Oriented Yarn (Poy) v
Polyester
Fully Drawn Yarns (Fdy) v
Polyester
Mono Filament Yarns (Pmfy) v
Polyester
Filament Yarn (Pfy) v
Polyester
Draw Texturised Yarn ( Dty/Pty) v
Air
Textured Yarns (Paty) v
Speciality
Polyester Filament Yarns (Spfy) v
Nylon
Yarns
|
PRODUCTION STATUS (AS ON 31.03.2011)
(i) Licensed Capacity: Not applicable
(ii) Installed Capacity (as certified by the management)
|
Particulars |
Unit |
Installed
Capacity |
|
Polyester Yarns (Texturised, Twisted and Dyed) and POY |
|
|
|
a) POY/FDY |
M.T. |
32500 |
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b) Dyeing Plant |
M.T. |
13200 |
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c) Texturising Machines |
Nos. |
29 |
|
d) Air |
Nos. |
6 |
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e) Draw Twisting Machine |
Nos. |
1 |
|
f) TFO Twisting Machine |
Nos. |
33 |
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Particulars |
Unit |
Production** |
|
Dyed / Text and Twisted Polyester Yarn |
MT |
31811.91* |
|
POY*** |
MT |
23444.02 |
* Includes 448.69 M.T. issued for internal consumption
** Production does not include 397.95 M.T. job work done for others
*** Includes 14386.27 M.T. issued for internal consumption.
GENERAL INFORMATION
|
No. of Employees : |
1500
(Approximately) |
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Bankers : |
v
Bank of v
State Bank of |
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Facilities : |
Notes: (a) Debentures i. 9% Secured
Non-Convertible Redeemable Debentures (NCD) of Rs.4.680 millions (Rs.7.360 millions)
are redeemable at par in 28 equal quarterly installments commencing from 1st
April 2006 and ending on 1st January 2013. ii. 9% Secured
Non-Convertible Redeemable Debentures (NCD) of Rs.3.865 millions (Rs.6.105
millions) are redeemable at par in 28 equal quarterly installments commencing
from 1st April 2006 and ending on 1st January 2013. iii. The above
debentures including interest there on are secured by way of first charge on movable
and immovable assets of the Company, both present and future, ranking pari
passu subject to prior charge on specific assets for certain term loans and
on current assets as per (b) (iii) below for borrowing from banks for working
capital loans. iv. The Company
has adequate Debenture Redemption Reserve (DRR) as at 31st March
2011. In view of this, the Company is not required to create additional
Debenture Redemption Reserve during the year. (b) Term Loans /
Working Capital Loans i. Term Loan from
Banks except b (ii) below, are secured by way of first charge on immovable
and movable assets of the Company, both present and future, ranking
pari-passu subject to the prior charge on specific assets for certain term
loans and on current assets as per b (iii) below for working capital loans
from banks ii. Term Loan of
Rs.2.292 millions (Rs.3.604 millions) from a bank is secured by way of a
charge on all machinery purchased out of the equipment finance scheme. iii. Working
Capital loans from Banks are secured by way of hypothecation of raw
materials, finished goods, goods in process, stores and spares and book debts
and second charge by way of mortgage on entire fixed assets of the Company. iv. Out of the
total term loans/working capital loans, Rs.129.821 millions (Rs.655.385
millions) have been personally guaranteed by the promoter directors.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
MGB and Company Chartered
Accountants |
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Other Related
parties with whom transactions have taken place during the year and balances outstanding
as on the last day of the year : |
v
Welspun Corp Limited v
Welspun India Limited v
Welspun Retail Limited v
Welspun Steel Limited v
Welspun Wintex Limited v
Krishiraj Trading Limited v
Mertz Securities Limited v
Welspun Global Brands Limited v
Welspun USA Inc. v
Welspun Investments and Commercials Limited v
Welspun Realty Private Limited v
Goodvalue Polyplast Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
106700000 |
Equity Shares |
Rs.10/-each |
Rs.1067.000 Millions |
|
3300000 |
Optionally
Convertible Cumulative Preference Shares |
Rs.10/- each |
Rs.33.000 Millions |
|
10000000 |
Redeemable
Cumulative Preference Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.1200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
23645027 |
Equity Shares |
Rs.10/- each |
Rs.236.450 Millions |
|
3203300 |
10% Optionally
Convertible Cumulative Preference Shares |
Rs.10/- each |
Rs.19.364 Millions |
|
10000000 |
8% Redeemable
Cumulative Preference Shares |
Rs.10/- each |
Rs.83.333 Millions |
|
|
Total |
|
Rs.339.147 Millions |
Notes:
Preference Share
Capital
The terms of redemption
of Preference Shares outstanding are as under:
a) 32,03,300 10%
Optionally Convertible Cumulative Preference Shares (OCCPS) of Rs.10 each fully
paid up (option to convert was lapsed on 18.05.2003) are redeemable at par in
three equal annual installments commencing from 18th June 2004. Out
of the above, 30,00,000 OCCPS were rescheduled in 2005-06 and are redeemable in
five equal annual installments.
The total amount
of Rs.19.364 millions due for redemption as at 31st March 2011 is
yet to be paid.
b) 1,00,00,000 8%
Redeemable Cumulative Preference Shares of Rs.10 each fully paid up are
redeemable at par in six equal installments commencing from 31st
March 2006.
The total amount of Rs.83.333 millions due for redemption as at 31st
March 2011 is yet to be paid.
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 |
339.147 |
339.147 |
339.147 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
403.048 |
306.536 |
306.535 |
|
|
4] (Accumulated Losses) |
0.000 |
(31.621) |
(102.896) |
|
|
NETWORTH |
742.195 |
614.062 |
542.786 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
780.128 |
668.850 |
759.520 |
|
|
2] Unsecured Loans |
90.000 |
150.000 |
0.000 |
|
|
TOTAL BORROWING |
870.128 |
818.850 |
759.520 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1612.323 |
1432.912 |
1302.306 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1035.081 |
909.883 |
996.154 |
|
|
Capital work-in-progress |
90.840 |
44.849 |
7.710 |
|
|
|
|
|
|
|
|
INVESTMENT |
223.360 |
223.360 |
223.360 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
567.851
|
397.586
|
316.678
|
|
|
Sundry Debtors |
370.250
|
286.080
|
212.414
|
|
|
Cash & Bank Balances |
62.886
|
47.316
|
45.564
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
179.910
|
165.036
|
113.867
|
|
Total
Current Assets |
1180.897
|
896.018
|
688.523
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
493.668
|
359.418
|
341.321
|
|
|
Other Current Liabilities |
392.210
|
250.885
|
239.694
|
|
|
Provisions |
31.977
|
30.895
|
32.426
|
|
Total
Current Liabilities |
917.855
|
641.198
|
613.441
|
|
|
Net Current Assets |
263.042
|
254.820
|
75.082
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1612.323 |
1432.912 |
1302.306 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Services (net) |
4963.326 |
3611.218 |
3140.050 |
|
|
|
Other Income |
75.204 |
48.280 |
27.625 |
|
|
|
TOTAL (A) |
5038.530 |
3659.498 |
3167.675 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods |
3266.433 |
2262.726 |
1959.480 |
|
|
|
Manufacturing and Other Expenses |
1449.863 |
1125.586 |
1055.914 |
|
|
|
TOTAL (B) |
4716.296 |
3388.312 |
3015.394 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
322.234 |
271.186 |
152.281 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
87.083 |
93.323 |
104.713 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
235.151 |
177.863 |
47.568 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
113.947 |
106.589 |
118.549 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
121.204 |
71.274 |
(70.981) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(6.930) |
0.000 |
1.574 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-I) (I) |
128.134 |
71.274 |
(72.555) |
|
|
|
|
|
|
|
|
|
|
Balance Brought
Forward |
(31.621) |
(102.895) |
(29.036) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to Fixed Assets |
0.000 |
0.000 |
1.304 |
|
|
BALANCE CARRIED
TO THE B/S |
96.513 |
(31.621) |
(102.895) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value exports (Excluding deemed export) |
977.310 |
667.184 |
436.832 |
|
|
TOTAL EARNINGS |
977.310 |
667.184 |
436.832 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
474.070 |
306.202 |
247.406 |
|
|
|
Stores & Spares |
60.168 |
46.820 |
42.758 |
|
|
|
Capital Goods |
43.289 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
577.527 |
353.022 |
290.164 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
4.99 |
2.59 |
(3.49) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1356.680 |
1503.320 |
1668.160 |
|
Total Expenditure |
1255.370 |
1396.420 |
1576.650 |
|
PBIDT (Excl OI) |
101.310 |
106.900 |
91.510 |
|
Other Income |
1.370 |
0.000 |
0.300 |
|
Operating Profit |
102.680 |
106.900 |
91.810 |
|
Interest |
29.710 |
30.530 |
40.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
72.970 |
76.370 |
51.210 |
|
Depreciation |
30.730 |
31.370 |
33.160 |
|
Profit Before Tax |
42.240 |
45.000 |
18.060 |
|
Tax |
0.000 |
1.730 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
42.240 |
43.270 |
18.060 |
|
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 |
42.240 |
43.270 |
18.060 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.54 |
1.95 |
(2.29) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.44 |
1.97 |
(2.26) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.47 |
3.95 |
(4.21) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.12 |
(0.13) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.41 |
2.38 |
2.53 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.29 |
1.40 |
1.12 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Incorporated on 31st March'83 as Kothari Leasing,
the company changed its name to Kothari Polyesters on 15 March'91 and to
Subject on 26 July'91. The company was promoted by G R Goenka, B K Goenka, S.K.
Goenka and R.R. Mandawewala. Subject is engaged in texturising, draw twisting
and twisting of polyester yarns. It set up a texturising unit at Silvassa in
1988 at a capital outlay of Rs.15.800 millions. Thereafter, more machines were
added for twisting and draw twisting. Subject's other unit is located at
Palghar (Thane district),
OPERATIONS
During the year,
Net sales / services and Gross Profit before Interest and Depreciation were of
Rs.4963.326 millions and Rs.322.234 millions respectively as compared to
Rs.3611.219 millions and Rs.271.186 millions respectively for the previous
year. Turnover of the Company and Gross Profits has thus increased by 37.44%
and 18.82% over the previous year.
FOB value of
Exports during the financial year 2010-11 were of Rs.977.310 millions as
compared to Rs.667.184 millions during the previous year, registering increase
by 46.48%.
Performance has
improved due to cost effective steps taken by the management, change in product
mix, increase in production and increase in demand of polyester texturised yarn
due to increase in prices of cotton.
Expansion
The Company is
under minor expansion at total capital outlay of Rs.331.000 millions. The
company added texturised machine, dyeing machine, twisting machine and is in
the process of installing POY line/FDY line.
The project is
partly financed by way of term loan of Rs.219.100 millions and balance by way
of internal accruals. The said expansion is likely to be completed by June,
2011.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY
STRUCTURE, SCENARIO AND DEVELOPMENT
The domestic fiber
consumption ratio in
Even in
The textile
industry in
Skewed demand for
synthetic yarn by textile producers, following a dramatic escalation in cotton
prices, has opened opportunities for man-made fiber producers.
Prices of POY rose
on account of a rise in the cotton yarn prices during the year. The demand for
polyester has been healthy due to rising cotton prices.
In an attempt to
boost country’s textiles sector,
In the overall
textile sector,
PRODUCT WISE
PERFORMANCE
The Company manufactures
Partially Oriented Yarn (POY), Texturised yarn/ Dyed yarn.
Gross annual
turnover of POY were of Rs.831.080 millions as compared to Rs.701.271 millions
of previous year and of Texturised Yarn/Dyed yarn were of Rs.4419.048 millions
as compared to Rs.3060.550 millions to previous year.
OUTLOOK
Global production
of Cotton is continuously decreasing and as a result prices of cotton yarn are
continuously rising. Increase in cotton yarn prices has pushed demand for
polyester yarn.
In view of the above
scenario, performance of the Company is expected to improve.
DISCUSSION ON
FINANCIAL PERFORMANCE
SALES AND PROFIT
During the year,
net sales and services were of Rs.4963.326 millions as against Rs.3611.219
millions in the previous year. The Company has earned net profits of Rs.128.134
millions as against net profits of Rs.71.274 millions during the previous year.
CONTINGENT LIABILITIES NOT PROVIDED FOR: (As on 31.03.2011)
a) Guarantees
given by banks Rs.32.000 millions
b) Disputed
demands of Excise Duty, Custom Duty, Service Tax and Income Tax- Rs.97.809
millions
c) Unexpired
Letters of Credit Rs.484.819 millions.
d) Custom Duty on
pending Export obligation for import under Advance License Rs.14.279 millions.
e) The accumulated
dividend of Rs.138.555 millions payable on Redeemable Cumulative / Optionally
Convertible Cumulative preference shares.
f) Claims against
the Company not acknowledged as debt Rs.13.985 millions
g) Bills
receivable discounted Rs.112.867 millions
h) The lenders right
to recompense for the concessions granted to the Company pursuant to the scheme
of arrangement approved by the High Court of Bombay and financial restructuring
approved by lenders, amount unascertained.
FIXED ASSETS:
Tangible Assets
v
v Buildings
v Plant and Machinery
v Vehicles
v Furniture and Fixture
v Equipments
v Computers
Intangible Assets
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.50.12 |
|
|
1 |
Rs.79.37 |
|
Euro |
1 |
Rs.66.00 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
32 |
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.