MIRA INFORM REPORT

 

 

Report Date :

25.10.2012

 

IDENTIFICATION DETAILS

 

Name :

HYDAC (INDIA) PRIVATE LIMITED (w.e.f. 01.03.2001)

 

 

Formerly Known As :

HYCOM INDIA PRIVATE LIMITED

 

 

Registered Office :

Ladhbhai Mansion, 2nd Floor, 1-A, Mama Parmanand Marg, Opera House, Mumbai – 400 004, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

05.10.1988

 

 

Com. Reg. No.:

11-049084

 

 

Capital Investment / Paid-up Capital :

Rs.18.400 Millions

 

 

CIN No.:

[Company Identification No.]

U33100MH1988PTC049084

 

 

IEC No.:

0398064776

 

 

TIN No.:

27070268551

 

 

PAN No.:

[Permanent Account No.]

AAACH2910B

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Hydraulic Systems and Accessories.

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1888000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of BUV (Beteiligungs Und Verwaltungs) GmbH. It is a well established company having good track.

 

It has achieved some growth in its sales during 2011. Financial position of the company appears to be good. Directors are reported to be well experienced and knowledgeable businessmen.

 

Trade relations are reported to be trustworthy. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good 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

 

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 (GENERAL DETAILS)

 

Name :

Mr. Sandeep

Designation :

Finance Head

Contact No.:

91-22-65119401

Date :

23.10.2012

 

 

LOCATIONS

 

Registered Office :

Ladhbhai Mansion, 2nd Floor, 1-A, Mama Parmanand Marg, Opera House, Mumbai – 400 004, Maharashtra, India

Tel. No.:

91-22-65119401/ 41118873

Fax No.:

91-22-27781180

E-Mail :

brijen@hydacindia.com

sanjay@hydacindia.com

Website:

http://www.hydacindia.com

Location :

Owned

 

 

Corporate Head Office/ Factory 1 :

Hydac House, Plot No.A-58, T.T.C. Industrial Area, M.I.D.C., Mahape, Navi Mumbai – 400 701, Maharashtra, India

Tel No.:

91-22-41118888

Fax No.:

91-22-27781180

E-Mail :

info@hydacindia.com

 

 

Factory 2 :

Located at:

 

v      Coimbatore (Tamilnadu)

v      Bhiwandi

 

 

Service Center :

Located at:

 

v      Bangalore (Karnataka)

 

 

Sales Offices :

Located at:

 

v      Navi Mumbai

v      Pune

v      Bangalore

v      Coimbatore

v      Delhi

v      Kolkata

 

 

Overseas Office :

Located at:

 

v      Australia

v      Hong Kong

v      Iran

v      Japan

v      Saudi Arabia

v      China

v      Indonesia

v      Korea

v      Singapore

v      Thailand

v      Taiwan

v      Malaysia

v      Vietnam

v      New Zealand

 

 

DIRECTORS

 

As on 25.06.2012

 

Name :

Mr. Venkateshwaran Krishnan

Designation :

Managing Director

Address :

2, Amrit, Union Park, S.T. Road, Chembur, Mumbai - 400 071, Maharashtra, India

Date of Birth/Age :

08.06.1961

Qualification :

B.Com - ACA, ACS

Date of Appointment :

25.06.2010

DIN No.:

00316948

 

 

Name :

Mr. Umesh Sharad Gandhi

Designation :

Whole - Time Director

Address :

Sea Gull, 53, Charmichel Road, Mumbai - 400 005, Maharashtra, India 

Date of Birth/Age :

19.09.1964

Qualification :

BS, ME

Date of Appointment :

25.06.2010

DIN No.:

02933726

 

 

Name :

Dr. Alexander Dieter

Designation :

Director

Address :

Sonnenrain 7, D - 97816 Lohrmain, Germany

Date of Appointment :

14.08.2001

DIN No.:

03357265

 

 

Name :

Mr. Otmar Schon

Designation :

Director

Address :

AM - Friend of 17, D - 66450, Bexbach, Holchem, Germany

Date of Appointment :

24.04.1995

DIN No.:

03357453

 

 

KEY EXECUTIVES

 

Name :

Mr. Sandeep

Designation :

Finance Head

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 25.06.2012

 

Names of Shareholders (Equity Shares)

 

No. of Shares

 

Umesh Sharad Gandhi

 

20

Vivek Chemicals Inds Private Limited

 

2000

Superlative Finance and Investments Private Limited

 

63000

Razia Sharad Gandhi

 

38980

BUV Beteligungs Und Verwaltungs GmbH

 

296000

Total

 

400000

 

 

Names of Shareholders (Preference Shares *)

 

No. of Shares

 

Superlative Finance and Investments Private Limited

 

374400

BUV Beteligungs Und Verwaltungs GmbH

 

1065600

Total

 

1440000

 

(*7% Non Cumulative Fully Convertible Preference Shares of Rs.10/- each.) On 22nd March, 2012, the Company issued 1440000 - 7% Non Cumulative Fully Convertible Preference Shares of Rs.10/- in place of 1440000 7% Non Cumulative Redeemable Preference Shares of Rs.10/-each (w.e.f. 22nd March, 2012 1440000 - 7% Non Cumulative Redeemable Preference Shares ceased to exist.)

 

As on 25.06.2012

 

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]

 

74.00

Bodies corporate

 

16.25

Directors or relatives of directors

 

9.75

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Hydraulic Systems and Accessories.

 

 

Exports :

 

Products :

Hydraulic Systems and Accessories

Countries :

v      Sri Lanka

v      Bangladesh

 

 

Imports :

 

Products :

Raw Materials

Countries :

v      Germany

v      Singapore

v      USA

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

PRODUCTION STATUS (AS ON 31.12.2010)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Accumulators

Nos.

Not Applicable

Not Applicable

6861

Filters

Nos.

Not Applicable

Not Applicable

28127

Filter Elements

Nos.

Not Applicable

Not Applicable

38259

Magnets

Nos.

Not Applicable

Not Applicable

19823

Valves

Nos.

Not Applicable

Not Applicable

45788

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers and Retailers

 

 

No. of Employees :

100 (Approximately)

 

 

Bankers :

v      Deutsche Bank AG, Deutsche Bank House, 1st Floor, Hazarimal Somani Marg, Fort, Mumbai – 400 001, Maharashtra, India

v      HDFC Bank, Navi Mumbai Branch

v      Bank of India

v      Tamilnad Mercantile Bank

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants 

Address :

12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate Worli, Mumbai – 400 018, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AACFD4815A

 

 

Holding Company (As on 31.12.2010) :

BUV (Beteiligungs Und Verwaltungs) GmbH

 

 

Fellow Subsidiaries (As on 31.12.2010) :

v      Hydac Accessories GmbH, Germany

v      Hydac Cooling GmbH

v      Hydac Electronic GmbH

v      Hydac Filtertechnik GmbH

v      Hydac Fluidtechnik GmbH

v      Hydac OY

v      Hydac Process Technology GmbH

v      Hydac PTK Produktionstechnik GmbH

v      Hydac S. a. r. l.

v      Hydac S. p. A.

v      Hydac SA Cooling Systems

v      Hydac Service GmbH

v      Hydac System GmbH

v      Hydac Technology GmbH

v      Hydac Technology Corporation

v      Hydac Technology Limited

v      Hydac Technology Pte. Limited

v      Hydrosaar GmbH

v      Hydac Co. Limited, Japan

v      Hydac SPOL S.R.O

 

 

CAPITAL STRUCTURE

 

As on 31.12.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

500000

Equity Shares

Rs.10/- each

Rs.5.000 Millions

1800000

Non Cumulative Redeemable Preference Shares

Rs.10/- each

Rs.18.000 Millions

 

Total

 

Rs.23.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

400000

Equity Shares 

Rs.10/- each

Rs.4.000 Millions

1440000

Non Cumulative Redeemable Preference Shares

Rs.10/- each

Rs.14.400 Millions

 

Total

 

Rs.18.400 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2011

31.12.2010

31.12.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

18.400

18.400

18.400

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

453.599

384.450

296.312

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

471.999

402.850

314.712

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.960

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.960

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

471.999

402.850

315.672

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

221.062

179.190

66.999

Capital work-in-progress

0.361

2.914

31.092

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERRED TAX ASSETS

2.722

3.410

2.583

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
405.066

222.588
190.304

 

Sundry Debtors
350.144

265.903
183.596

 

Cash & Bank Balances
35.568

52.586
98.143

 

Other Current Assets
2.147

0.268
1.367

 

Loans & Advances
37.410

16.845
23.678

Total Current Assets
830.335

558.190

497.088

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

487.159

259.274
236.228

 

Other Current Liabilities
29.092

21.711
12.127

 

Provisions
66.230

59.869
33.735

Total Current Liabilities
582.481

340.854

282.090

Net Current Assets
247.854

217.336
214.998

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

471.999

402.850

315.672

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2011

31.12.2010

31.12.2009

 

SALES

 

 

 

 

 

Income

1203.389

926.425

658.189

 

 

Other Income

63.665

30.965

29.783

 

 

TOTAL                                     (A)

1267.054

957.390

687.972

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Increase in Process Stock

(45.275)

(42.735)

(6.796)

 

 

Purchase of Traded Goods

 

20.515

4.921

 

 

Manufacturing and Other Expenses

1187.549

828.072

568.865

 

 

Excise duty

 

4.059

2.153

 

 

TOTAL                                     (B)

1142.274

809.911

569.143

 

 

 

 

 

Less

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

124.780

147.479

118.829

 

 

 

 

 

Less

INTEREST                                                         (D)

3.002

0.428

0.465

 

 

 

 

 

 

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

121.778

147.051

118.364

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

17.282

12.430

6.320

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

104.496

134.621

112.044

 

 

 

 

 

 

TAX                                                                  (H)

35.187

47.174

39.718

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

69.269

87.447

72.326

 

 

 

 

 

 

Excess provision for tax in respect of earlier years (net)

(0.120)

0.691

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

380.850

292.712

220.386

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

449.999

380.850

292.712

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Commission

38.364

22.729

13.984

 

 

Service Charges

 

2.497

4.068

 

 

FOB Value of Direct Exports

3.605

4.355

3.077

 

TOTAL EARNINGS

41.969

29.581

21.129

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Components

757.390

422.765

253.948

 

 

Capital Goods

28.225

1.366

6.673

 

TOTAL IMPORTS

785.615

424.131

260.621

 

 

 

 

 

 

Earnings Per Share (Rs.)

172.87

220.34

180.81

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2011

31.12.2010

31.12.2009

PAT / Total Income

(%)
5.47

9.13
10.51

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
8.68

14.53
17.02

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
9.94

18.26
19.86

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.22

0.33
0.36

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
1.23

0.85
0.90

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
1.43

1.64
1.76

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.12.2011

(Rs. in millions)

31.12.2010

(Rs. in millions)

31.12.2009

(Rs. in millions)

Sundry Creditors

 

 

 

- Creditors due small micro enterprises

13.361

3.033

2.134

- Creditors due others

473.798

256.241

234.094

Total

487.159

259.274

236.228

 

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

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

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

No

 

 


YEAR IN RETROSPECT (2011):

 

The operations during the year were satisfactory. The Company achieved a Net sales turnover of Rs.1203.389 millions (and other income of Rs.63.665 millions. Increased cost of inputs, due to weak Indian Rupees and severe competition the margins were under pressure which in turn has affected the profitability.

 

CURRENT YEAR (2012)

 

The order bookings and executions till date have been good and the Company hopes to achieve the targeted turnover. However the price realizations are under pressure because of severe competition and increase in input cost, particularly the imported components because of the slide in the Indian rupees. All efforts are being taken to reduce the impact of these adverse factors and the company hopes to do reasonably well in the current year.

 

COIMBATORE PLANT:

 

The Manufacturing facility setup by the company mainly for Wind Energy Equipment at Coimbatore at a cost of Rs.130.000 millions, became operational in September 2010 and has stabilised production facilities.

 

NEW PRODUCTION FACILITY AT BHIWANDI, NEAR MUMBAI

 

The company has taken on lease Factory premises in Bhiwandi, near Mumbai for production / assembly of hydraulic systems and the facility is expected to be operational in the last quarter of 2012. This arrangement is made with a view to decongest, the existing plant at Navi Mumbai.

 

Contingent Liability in respect of:

 

Particulars

31.12.2010

(Rs. in millions)

a) Sales Tax demands disputed in appeals

[these mainly relates to non submission of 'C/ 14/ H' Forms (pending before Joint Commissioner of Sales Tax and Commissioner of Sales Tax (Appeals))]

4.218

b) Excise Duty demands disputed in appeals

[these relates to penalty imposed on delayed payment of excise duty (pending before Customs, Excise and Service Tax Appellate Tribunal (CESTAT))]

0.545

c) Income Tax demands disputed in appeals

[these mainly relates to disallowances of repairs, renovation, etc. (pending before The Income Tax Appellate Tribunal (ITAT))]

2.856

 

In the above matters, the Company is hopeful of succeeding and as such does not expect any significant liability to crystallize.

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U33100MH1988PTC049084

Name of the company

HYDAC (INDIA) PRIVATE LIMITED

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

Ladhbhai Mansion, 2nd Floor, 1-A, Mama Parmanand Marg, Opera House, Mumbai – 400 004, Maharashtra, India

E-Mail: brijen@hydacindia.com

This form is for

Modification of charge

Charge identification number of the modified 

90224632

Type of charge

Book Debts

Movable Property (not being pledge)

Particular of charge holder

Deutsche Bank AG, Deutsche Bank House, 1st Floor, Hazarimal Somani Marg, Fort, Mumbai – 400 001, Maharashtra, India

E-Mail: dayanand.poojary@db.com

Nature of description of the instrument creating or modifying the charge

Seventh Supplemental Deed of Hypothecation  of stocks and book debts

Date of instrument Creating the charge

15.02.2012

Amount secured by the charge

Rs.150.000 millions

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

Rate of Interest:

Interest at the rate of Deutsche Bank AG, India prime lending rate prevalent from time to time.

 

Terms of Repayment:

Each advance shall be repaid in full on the last business day of the term for which such advance was drawn down ("repayment date").

 

Margin:

As per agreement

 

Extent and Operation of the charge:

All the borrower's present and future tangible movable assets including plant and machineries, tools and accessories, etc. and all the present and future book debts, outstanding, monies receivable etc.

 

Others:

Counter guarantee and indemnity by Hydac Technology GmbH.

Short particulars of the property charged

All the borrower's present and future tangible movable assets and all the present and future book debts.

Date of latest modification prior to the present modification

23.06.2009

Particulars of the present modification 

The Bank has agreed to restructure the bills discounting facilities within the existing drawing limit of INR 150.000 millions with a guarantee sub-limit of INR 100.000 millions as overdraft/ short term loan/ export bills purchase/ pre-export advance/ bills discounting/ cheque purchase/ guarantees.

 

FIXED ASSETS

 

v      Leasehold Land

v      Freehold Land

v      Buildings

v      Office Premises

v      Plant and Machineries

v      Dies and Jigs

v      Furniture and Fixtures

v      Office Equipments

v      Computers and Printers

v      Vehicles

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.53.59

UK Pound

1

Rs.85.81

Euro

1

Rs.69.90 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--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

 

54

 

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.