MIRA INFORM REPORT

 

 

Report Date :

20.10.2012

 

IDENTIFICATION DETAILS

 

Name :

KIRLOSKAR EBARA PUMPS LIMITED

 

 

Registered Office :

Pride Kumar Senate Building, Senapati Bapat Road, Pune-411016, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

13.01.1988

 

 

Com. Reg. No.:

11-045865

 

 

Capital Investment / Paid-up Capital :

Rs.5.000 Millions

 

 

CIN No.:

[Company Identification No.]

U29120MH1988PLC045865

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEK05175C

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Industrial Pumps and Turbines

 

 

No. of Employees :

250 (Approximately)

 

RATING & COMMENTS

 

MIRA’s Rating :

A (62)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 4566000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between Kirloskar Brother Limited, India and Ebara Corporation Japan two renewed business houses.

 

It is a well established and reputed company having fine track. There appears some dip in the profitability of the company. However, netwoth appears to be satisfactory. General financial position of the company is good. 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.

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country’s growth, which has averaged more than 7% per year since 1997. India’s diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India’s output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis – in large part because of strong domestic demand – and growth exceeded 8% year-on-year in real terms. However, India’s economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government’s fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India’s medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

A+(Long Term Rating)

Rating Explanation

Adequate degree of safety. It carry low credit risk.

Date

03.07.2012

 

 

Rating Agency Name

CRISIL

Rating

A1+ (Short Term Rating)

Rating Explanation

Very strong degree of safety. It carry lowest credit risk.

Date

03.07.2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Ajit

Designation :

Accounts Manager

Contact No.:

91-20-25600100

Date :

19.10.2012

 

 

LOCATIONS

 

Registered Office :

Pride Kumar Senate Building, Senapati Bapat Road, Pune-411016, Maharashtra, India

Tel. No.:

91-20-25600100

Fax No.:

91-20-25600351

E-Mail :

kepl@kirloskarebara.co.in

ajit.sumant@kirloskarebara.co.in

Website :

http://www.kirloskarapps.kirloskar.com

http://www.kirloskarebara.co.in

Location :

Owned

 

 

Factory :

Savantpur Vasahat, P.O. Kirloskarwadi, District Sangli-416308, Maharashtra, India

Tel. No.:

91-2346-222167/ 222371

Fax No.:

91-2346-222372

 

 

DIRECTORS

 

AS ON 16.07.2012

 

Name :

Mr. Sanjay Chandrakant Kirloskar

Designation :

Director

Address :

33, Suyojana Co-operative Housing Society, Scheme No. 2, Koregaon Park, Pune-411001, Maharashtra, India

Date of Birth/Age :

22.03.1957

Date of Appointment :

24.08.2004

DIN No.:

00007885

 

 

Name :

Mr. Toichi Kingoro Meda

Designation :

Director

Address :

4-5-25, Kugahara, Ohta-KU, Tokyo, Japan

Date of Birth/Age :

24.12.1955

Date of Appointment :

19.07.2003

DIN No.:

01443689

 

 

Name :

Ms. Aseem Krishanmohan Srivastav

Designation :

Managing Director

Address :

IPF 16/2, Shalimar Township, a B Road, Indore-452010, Madhya Pradesh, India

Date of Birth/Age :

07.10.1967

Date of Appointment :

19.04.2012

DIN No.:

03178279

 

 

Name :

Mr. Atsuo Oi

Designation :

Director Apposited in Casual Vacancy

Address :

2-17-1-609, Tamagawa, Ota-Ku,Tokyo, Japan

Date of Birth/Age :

20.02.1957

Date of Appointment :

15.03.2012

DIN No.:

05224778

 

 

KEY EXECUTIVES

 

Name :

Mr. Ajit

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 16.07.2012

 

Shareholders details file attach

 

 

AS ON 16.07.2012

 

Equity Shares Break Up

Percentage of Holding

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

45.00

Bodies corporate

46.73

Directors or relatives of Directors

5.20

Other top fifty shareholders

3.07

TOTAL

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Industrial Pumps and Turbines

 

 

Products :

Product Description

ITC Code

Single and Multistage Chemical and Process Pumps

841370.01

Boiler Feed Pumps

841370.05

Steam Turbines

840682.00

 

 

Terms :

 

Selling :

Cash, Credit

 

 

Purchasing :

Cash, Credit

 

 

PRODUCTION STATUS (AS ON : 31.03.2010)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Industrial Process Pumps

Nos.

5000

1200

391

Steam Turbines

Nos.

150

150

20

 

 

NOTES

 

a)       Since the company’s installed capacity is dependent on Product mix, which in turn is decided on the basis of actual demand for various products from time to time and availment of sub-contracting facilities, it is not feasible for the company to give exact installed capacity. The company, however, indicated the installed capacity as estimated and certified by Managing Director, and being a technical matter, accepted by the Auditors as correct.

 

b)       Licensed capacity is as per the Industrial Enterpreneur Memorandum filed with Ministry of Commerce and Industries, New Delhi and acknowledged under Reference No. 5656/SIA/IM0/2005 dated 06.12.2005

 

 

c)       3 Nos. Turbines used for captive consumption.

 

 

GENERAL INFORMATION

 

Suppliers :

·         Enpro Industries Private Limited

 

 

Customers :

Wholesalers and Retailers

 

·         HPCL

·         BPCL

·         IOCL

 

 

No. of Employees :

250 (Approximately)

 

 

Bankers :

·         State Bank of India, Industrial Finance Branch, 2nd Floor, Tara Chambers, Near Mariaai Police Chowky, Pune Mumbai Old Highway, Wakdewadi, Pune-411003, Maharashtra, India

·         Yes Bank Limited, Nehru Centre, 9th Floor, Discovery of India, Dr. A. B. Road, Worli, Mumbai-400018, Maharashtra, India

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Foreign currency loans secured

 

 

Foreign currency loans banks secured

92.567

0.000

 

 

 

TOTAL

92.567

0.000

 

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Deferred sales tax loan unsecured

16.112

17.144

 

 

 

TOTAL

16.112

17.144

 

State Bank of India Cash credit Limit Rs. 100.000 Millions

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Dalal and Shah

Chartered Accountant

Address :

252, Shivaji Park, Veer Sawarkar Marg, Dadar (West), Mumbai-400028, Maharashtra, India

PAN No.:

AAAFD0907D

 

 

Associates (As On 31.03.2010) :

·         Ellott Company, USA

·         Ebara Engineering Singapore Pte. Limited

·         Elliott Turbomachinery Limited, U.K

·         Ellott Ebara Singapore Pte. Limited

 

 

Enterprises that directly and indirectly control KEPL (As On 31.03.2010) :

·         Kirloskar Brothers Limited

·         Ebara Corporation, Japan

·          

 

 

Other Related Companies (As On 31.03.2010) :

·         Prakar Investments Private Limited

·         Better Value Holdings Private Limited

·         Asara Sales and Investments Private Limited

·         Virtuso Investments Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

2000000

Equity Shares

Rs.10/- each

Rs. 20.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

500000

Equity Shares

Rs.10/- each

Rs. 5.000 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

5.000

5.000

5.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1136.500

992.795

788.694

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1141.500

997.795

793.694

LOAN FUNDS

 

 

 

1] Secured Loans

92.567

0.000

26.861

2] Unsecured Loans

16.112

17.144

18.263

TOTAL BORROWING

108.679

17.144

45.124

DEFERRED TAX LIABILITIES

36.329

22.643

18.296

 

 

 

 

TOTAL

1286.507

1037.582

857.114

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

571.027

375.495

365.756

Capital work-in-progress

9.101

61.793

3.412

 

 

 

 

INVESTMENT

90.916

223.166

81.414

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

473.406
208.995
190.739

 

Sundry Debtors

461.578
421.691
442.163

 

Cash & Bank Balances

33.753
32.586
31.603

 

Other Current Assets

0.286
0.221
6.106

 

Loans & Advances

138.960
69.932
67.893

Total Current Assets

1107.983

733.425

738.504

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

290.459
158.766
140.333

 

Other Current Liabilities

136.828
92.683
83.762

 

Provisions

65.233
104.848
107.877

Total Current Liabilities

492.520

356.297

331.972

Net Current Assets

615.463
377.128
406.532

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1286.507

1037.582

857.114

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Sales Turnover

1159.871

1263.212

1239.672

 

 

Operating Income

0.000

0.000

18.045

 

 

Other Income

93.216

19.689

24.689

 

 

TOTAL                                     (A)

1253.087

1282.901

1282.406

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

611.811

582.494

565.375

 

 

Manufacturing service costs

102.162

90.625

89.670

 

 

Contract cost

38.329

23.276

0.000

 

 

Employee related expenses

95.931

87.385

92.499

 

 

Administrative selling other expenses

103.509

91.961

133.376

 

 

TOTAL                                     (B)

951.742

875.741

880.920

 

 

 

 

 

Less

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

301.345

407.160

401.486

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

4.001

2.626

1.321

 

 

 

 

 

 

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

297.344

404.534

400.165

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

39.441

35.268

30.294

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                 (G)

257.903

369.266

369.871

 

 

 

 

 

Less

TAX                                                                  (H)

85.143

124.353

128.747

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

172.760

244.913

241.124

 

 

 

 

 

 

Tax Adjustments in respect of earlier years

NA

NA

[0.007]

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

NA

34.454

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

NA

NA

180.000

 

 

Dividend

NA

NA

35.000

 

 

Tax on Dividend

NA

NA

5.948

 

BALANCE CARRIED TO THE B/S

NA

NA

54.623

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Export

NA

96.500

65.523

 

 

Commission

NA

8.361

14.371

 

TOTAL EARNINGS

NA

104.861

79.894

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

98.944

57.755

 

 

Consumables

NA

1.506

1.910

 

 

Capital Goods

NA

0.089

48.519

 

TOTAL IMPORTS

NA

100.539

108.184

 

 

 

 

 

 

Earnings Per Share (Rs.)

345.52

490

482

 

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

1400.000

 

 

 

 

 

Expected Sales (2012-2013) : Rs. 1900.000 Millions

 

The above information has been parted by Mr. Ajit.

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

13.79

19.09

18.80

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

22.24

29.23

29.84

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

15.36

33.30

33.39

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.23

0.37

0.47

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.56

0.40

0.48

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.25

2.06

2.23

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

 

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars

 

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

 

 

 

 

 

 

 

Creditors due small micro enterprises

0.000

0.000

0.000

Creditors due others

290.459

158.766

140.333

TOTAL

290.459

158.766

140.333

 

OPERATIONS

 

During the year, the Company achieved a turnover of Rs. 1253.086 Millions as compared to Rs. 1282.902 Millions in the last financial year. There is no growth in the turnover as compared to previous financial year. The decline in sales is mainly due to delay in dispatches of Turbogensets for various reasons. The Company expects improved performance for the current financial year, as it has sufficient orders under execution as on date.

 

FORM 8

 

Corporate identity number of the company

U29120MH1988PLC045865

Name of the company

KIRLOSKAR EBARA PUMPS LIMITED

Address of the registered office or of the principal place of  business in India of the company

Pride Kumar Senate Building, Senapati Bapat Road, Pune-411016, Maharashtra, India

This form is for

Modification of charge

Charge identification number of the charge to be modified

80001116

Type of charge

·         Immovable property

·         Book debts

·         Movable property (not being pledge)

·         Others

Particular of charge holder

State Bank of India, Industrial Finance Branch, 2nd Floor, Tara Chambers, Near Mariaai Police Chowky, Pune Mumbai Old Highway, Wakdewadi, Pune-411003, Maharashtra, India

Nature of instrument creating charge

Supplemental Agreement of Hypothecation of Goods and Assets for increase in the Overall Limit (Form C.2) and Letter regarding the grant of individual limits within the overall limit (Form C,-5) and the Memorandum for recording extension of Mortgage by Deposit of Title Deeds in banks favour,  all the documents execute to secure the enhanced limit sanctioned by the Bank to the Borrower Company.

Date of instrument Creating the charge

27.09.2011

Amount secured by the charge

Rs. 860.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of interest

3.75% above Base Rate or as advised from time to time. The company has given assent to the Base Rate Concept.

For BG: Flat Rate of 0.70% p.a.

 

Terms of repayment

DCC: On Demand. The renewal after 30.03.2012.

 

Margin

RM:25% Stock in Process and Finished Goods :33.33% Book Debts (Cover Period 90 days):40%

 

Extent and operation of the charge

SBI IFB Pune will have first and exclusive charge on all the present and future current assets and the fixed immovable assets  of the company including the assets that will be brought into existence through the credit facilities extended by the Bank to the Borrower Company. The charge will be in continuous mode till the repayment of entire loan with interest thereon and will be governed as per Sanction Letter issued by the Bank.

 

Other

The Company, by virtue of the Board Resolution passed on 22.07.2011,has given assent to all the Terms and Conditions, Covenants, as provided in the Bank's Sanction Letter No. IFB/CREDIT.RM-III/22 Dated 30.04.2011 have executed the related loan document(s)/ Agreement(s) through the Director(s),who have received  and signed the documents in physical form and who have been authorized to file  eform-8 for modifications in the existing limits and in the nature and scope of the charge on agreed terms.

Short particulars of the property charged (Including location of the property)

All the current assets and of Book Debts generated through the commercial transactions of the company located at the Registered Office and at the Works of the Company

 

All that piece and parcel of land bearing part of Gat No.904 at Savantpur Taluka Palus(earlier Taluka Tasgaon) District Sangli adm 2.42.82 Hector and as geographicated in the Memorandum of Title Deeds itself.

 

All that piece and parcel of land bearing part of Gat No.904 at savantpur Taluka Palus District Sangli adm 31.5 Aar and as geographicated in the Memorandum of Title Deeds itself.

 

All the above cited properties will continue as security for the enhanced limit to the tune of Rs.860.000 Millions.

Date of instrument modifying the charge

26.02.2011

Particulars of the present modification

By this present modification the existing limit of Rs.800.000 Millions has been enhanced to Rs.860.000 Millions.(The existing limit of LC facilities has been enhanced by Rs.40.000 Millions while BG facilities have been enhanced by Rs.20.000 Millions. Thus the total enhancement in the existing limit is of Rs.60.000 Millions) The Company has also extended the security of immovable assets to cover the enhanced limit through deposit of title deeds in banks favour.

 

 

TRADE REFERENCES

 

·         Enpro Industries Private Limited

·         HPCL

·         BPCL

·         IOCL

 

 

FIXED ASSETS

 

·         Land – freehold

·         Building

·         Plant and Machinery

·         Computers

·         Electrical Installation

·         Patterns

·         Furniture and Fittings

·         Vehicles

·         Computer Software

·         Technical Know how

 

 

 

 


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. 52.96

UK Pound

1

Rs. 85.45

Euro

1

Rs. 69.45

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

DPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

62

 

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.