MIRA INFORM REPORT

 

 

Report Date :

24.09.2012

 

 

 

 

IDENTIFICATION DETAILS

 

Name :

LUBRIZOL INDIA PRIVATE LIMITED

 

 

Registered Office :

2nd Floor, VIP House, 88-C, Old Prabhadevi Road, Mumbai – 400 025, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

20.07.1966

 

 

Com. Reg. No.:

11-013538

 

 

Capital Investment / Paid-up Capital :

Rs. 192.000 millions

 

 

CIN No.:

[Company Identification No.]

U23201MH1966PTC013538

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUML04740B

 

 

PAN No.:

[Permanent Account No.]

AAACL0126H

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing and Marketing of Lubricants.

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (66)

 

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 12240000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. 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

AA- (Long Term Rating)

Rating Explanation

High degree of safety and very low credit risk

Date

02nd August 2012

 

Rating Agency Name

CRISIL

Rating

A1+ (Short Term Rating)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

02nd August 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 DENIED BY

 

Name :

Mr. M. k. Kanadiya

Designation :

Finance Manager

Contact No.:

91-22-2430067

Date :

22.09.2012

 

 

LOCATIONS

 

Registered Office / Marketing Division:

2nd Floor, VIP House, 88-C, Old Prabhadevi Road, Mumbai – 400 025, Maharashtra, India

Tel. No.:

91-22-24300672 / 0784 / 1856 / 2315 / 24222062 / 24302315 / 24370995

Fax No.:

91-22-24300251 / 24370994 / 24366097

E-Mail :

pvs@lubrizol.com

indulekha.godse@lubrizol.com

Website :

http://www.petroleum.nic.in/lil.htm

http://www.lubrizolindia.com

http://www.lubrizol.com

Location :

Owned

 

 

Regional Office 1 :

524/525, 5th Floor, Core - 6, Scope Complex, Lodhi Road, New Delhi – 110 003, India

Tel. No.:

91-11-24361317

Fax No.:

91-11-24362879 / 24361629

 

 

Regional Office 2 :

Apeejay Business Center, Apeejay House, 12, Haddows Road, Nungambakkam, Chennai – 600 006, Tamilnadu, India 

Tel. No.:

91-44-2822 4949

 

 

Regional Office 3 :

Room No.-7, 6th floor Shantiniketan, 8, Carnac Street, Kolkata-700017, West Bengal, India

Tel. No.:

91-33-22824063

Fax No.:

91-33-22825782

 

 

Factory 1 / Technical Support Facility:

9/3, Thane Belapur Road, Turbhe, District Thane, Navi Mumbai – 400 705, Maharashtra, India

Tel. No.:

91-22-27672568 / 67759570

Fax No.:

91-22-27627155 / 67759434

 

 

Factory 2 :

T-6, MIDC, Industrial Area, Taloja, District Raigad, Maharashtra, India 

Tel. No.:

91-22-27410813

Fax No.:

91-22-27410910

 

 

Branch Office 1 :

Apeejay Business Center, Apeejay House,  12, Haddows Road, Nungambakkam, Chennai – 600 006, Tamilnadu, India 

Tel. No.:

91-44-28224949

 

 

Branch Office 2 :

Temple Tower, 2nd Floor, Nandanam, 476, Anna Salai, Chennai – 600 035, Tamilnadu, India

Tel. No.:

91-44-24346451

Fax No.:

91-44-24330943

 

 

Branch Office 3 :

Room No. 7, 6th Floor, Shantiniketan, 8, Carnac Street, Kolkata – 700 017, West Bengal, India

Tel. No.:

91-33-22824063

Fax No.:

91-33-22825782

 

 

DIRECTORS

 

As on 04.05.2012

 

Name :

Mr. Udaya Bhaskar Pasumarthy

Designation :

Nominee Director

Address :

Flat No. 402, Bajaj diamond, Union Park, Khar (West), Mumbai – 400 052, Maharashtra, India

Date of Birth/Age :

05.01.1952

Date of Appointment :

01.07.2012

DIN No.:

03173329

 

 

Name :

Mr. Gyan Chand Daga

Designation :

Alternate Director

Address :

42, Casa Grande Little Gibbs Road, Malabar Mills, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

08.09.1951

Date of Appointment :

28.11.2011

DIN No.:

00101534

 

 

Name :

Mr. Kannan Narasimha Gopala Desika Chariar

Designation :

Director

Address :

K-99, 16th Street, Anna Nagar, Chennai – 600 102, Tamilnadu, India

Date of Birth/Age :

08.06.1946

Date of Appointment :

01.04.2007

DIN No.:

00142201

 

 

Name :

Mr. Darius Cavasji Shroff

Designation :

Alternate Director

Address :

Moonlight, Flat No.8, 158, M. Karve Road, Churchgate, Mumbai – 400 020, Maharashtra, India

Date of Birth/Age :

08.08.1950

Date of Appointment :

22.07.2004

DIN No.:

00170680

 

 

Name :

Mr. David James Fries

Designation :

Director

Address :

2051, Ridgebury Drive, Painsville, OH – 44077, USA

Date of Birth/Age :

14.02.1959

Date of Appointment :

22.07.2004

DIN No.:

00655276

 

 

Name :

Mr. Madhukar Ramniklal kumbhani

Designation :

Managing Director

Address :

99, Dariya Mahal B 80, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

04.02.1950

Date of Appointment :

01.10.2006

DIN No.:

01902492

 

 

Name :

Mr. Ravinder Kumar Malhotra

Designation :

Additional Director

Address :

303, A.G.C.R. Enclave, New Delhi – 110 092

Date of Birth/Age :

25.06.1954

Date of Appointment :

01.07.2010

DIN No.:

02024661

 

 

Name :

Mr. John Louis Petric

Designation :

Director

Address :

9277 Regency Woods, Kirtland, OH, OHIO, 44094, United States of America

Date of Birth/Age :

07.05.1951

Date of Appointment :

11.06.2009

DIN No.:

02703611

 

 

Name :

Mr. Ramaswamy Viswanathan

Designation :

Director

Address :

Flat 201, Bajaj Daimond, 2, Union Park, Pali Hills, Khar (West), Mumbai – 400 052, Maharashtra, India

Date of Birth/Age :

11.07.1953

Date of Appointment :

11.04.2011

DIN No.:

03514662

 

 

Name :

Mr. Vijay Kumar Gupta

Designation :

Alternate Director

Address :

V-33, Green Park, Delhi – 110 016, Maharashtra, India

Date of Birth/Age :

04.06.1954

Date of Appointment :

16.03.2012

DIN No.:

03613222

 

 

KEY EXECUTIVES

 

Name :

Mr. M. k. Kanadiya

Designation :

Finance Manager

 

 

Name :

Indulekha Nitin Godse

Designation :

Secretary

Address :

JN-4/10/14, Blue Haven, Sector 10, Vashi, Navi Mumbai – 400 703, Maharashtra, India

Date of Birth/Age :

02.09.1963

Date of Appointment :

01.12.2004

PAN No.:

ACCPG6775A

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 04.05.2012

 

Names of Shareholders

No. of Shares

The Lubrizol Corporation, U.S.A

960000

Indian Oil Corporation Limited, U.S.A

960000

 

 

TOTAL

1920000

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Government Companies

50.00

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

50.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of Lubricants.

 

 

Products :

·         Engine Oil – Additives

·         Viscosity Index- Improvers and Pour Point Depressant

·         Industrial Oil – Additives

 

 

Brand Names :

“ LUBRIZOL”

 

 

PRODUCTION STATUS (As on 31.12.2011)

 

Particulars

Licensed Capacity

(MTPA)@

Installed Capacity

(MTPA)@

Actual Production

(MTPA)

Finished Additive packing Chemical

Additives inclusive of:

Metal Working Oil Additives, Anti – Oxidant, Corrosion Inhibitor, Detergent Additives, Dispersant, Additives, Extreme Pressure Additives, V.I. Improvers /Pour Point Depressants and Flow Improvers

--

60000

47142

Raw Material

- Isobutylene

--

3000

--

 

Note:

1. @ indicates as certified by Management

2. Production figures are inclusive of production for captive consumption.

3. Since licenses are no longer required for products manufactured, the data for the same are not given.

 

GENERAL INFORMATION

 

No. of Employees :

500 (Approximately)

 

 

Bankers :

·         State Bank of India, Commercial Branch, Opposite Shivaji Vidyalaya, Dadar (East), Mumbai – 400 014, Maharashtra, India

·         Bank of India, Mumbai, Maharashtra, India.

·         ICICI Bank Limited, Mumbai, Maharashtra, India.

 

 

Facilities :

Unsecured Loan

As on

31.12.2011

(Rs. in

Millions)

As on

31.12.2010

(Rs. in

Millions)

Foreign currency loans others unsecured

0.053

0.045

Total

0.053

0.045

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Plot No. 12, Dr. Annie Besant Road, Opposite Shivsagar Estate, Worli, Mumbai-400018, Maharashtra, India

Tel. No.:

91-22-66679000

Fax No.:

91-22-66679025 / 66679100

PAN No.:

AACFD4815A

 

 

Related Parties :

·         Lubrizol Corporation

·         Indian Oil Corporation Limited, India

 

 

CAPITAL STRUCTURE

 

As on 04.05.2012

 

Authorized Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

1920000

Equity Shares

Rs. 10/- each

Rs. 192.000 millions

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

1920000

Equity Shares

Rs. 10/- each

Rs. 192.000 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

192.000

192.000

192.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2868.350

2593.820

2457.684

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

3060.350

2785.820

2649.684

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.053

0.045

0.047

TOTAL BORROWING

0.053

0.045

0.047

DEFERRED TAX LIABILITIES

34.631

45.397

66.469

 

 

 

 

TOTAL

3095.034

2831.262

2716.200

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

835.630

758.302

778.357

Capital work-in-progress

81.598

45.946

10.786

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1745.322
1508.114
1091.952

 

Sundry Debtors
873.599
715.214
601.908

 

Cash & Bank Balances
884.932
890.997
740.376

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
184.722

218.630
211.340

Total Current Assets
3688.575

3332.955

2645.576

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
610.333

785.758
527.271

 

Other Current Liabilities
43.426

10.649
39.189

 

Provisions
857.010

509.534
152.059

Total Current Liabilities
1510.769

1305.941

718.519

Net Current Assets
2177.806

2027.014

1927.057

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3095.034

2831.262

2716.200

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.12.2011

31.12.2010

31.12.2009

 

Gross Income

8403.386

7257.677

5660.366

 

Other Income

NA

NA

NA

 

TOTAL INCOME

NA

NA

NA

 

 

 

 

 

 

EXPENSES

NA

NA

NA

 

 

 

 

 

 

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

2127.551

1894.891

1515.647

 

 

 

 

 

 

FINANCIAL EXPENSES                                   

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

2127.551

1894.891

1515.647

 

 

 

 

 

 

DEPRECIATION/ AMORTISATION                    

93.226

87.576

92.365

 

 

 

 

 

 

PROFIT BEFORE TAX

2034.325

1807.315

1423.282

 

 

 

 

 

 

TAX                                                     

644.059

597.699

495.698

 

 

 

 

 

 

PROFIT AFTER TAX

1390.266

1209.616

927.584

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

446.210

431.035

101.627

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

384.000

614.400

432.000

 

 

Tax on Interim Dividend

62.294

102.044

73.418

 

 

Proposed Final Dividend

576.000

307.200

0.000

 

 

Tax on Proposed Dividend

93.442

49.836

0.000

 

 

Transfer to General Reserve

139.027

120.961

92.758

 

BALANCE CARRIED TO THE B/S

581.713

446.210

431.035

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of exports

805.975

681.878

780.016

 

 

Commission Earnings

17.832

14.386

13.078

 

 

Discount Received

1.009

0.675

0.000

 

TOTAL EARNINGS

824.816

696.866

793.094

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

739.208

680.805

735.150

 

 

Intermediates

1407.406

1094.786

557.442

 

 

Traded

10.858

14.897

0.000

 

 

Stores and Spares

8.742

6.374

6.182

 

 

Capital Goods

27.594

17.786

11.531

 

TOTAL IMPORTS

2193.808

1814.648

1310.305

 

 

 

 

 

 

Earnings Per Share (Rs.)

72.41

63.01

48.31

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2011

31.12.2010

31.12.2009

Return on Total Assets

(PBT/Total Assets}

(%)
44.96

44.17

53.79

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.66

0.65

0.53

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.49

0.46

0.27

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.44

2.55

3.68

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.12.2011

 

31.12.2010

31.12.2009

 

(Rs. In Millions)

 

 

 

 

Creditors due small micro enterprises

0.048

0.048

0.286

Creditors due others

610.285

785.710

526.985

 

 

 

 

TOTAL

610.333

785.758

527.271

 

 

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

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

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

 

 

CONTINGENT LIABILITY (As on 31.12.2011)

                                                                                                                (Rs. in millions)

Particulars

31.12.2011

Central excise duty, Customs duty and Sales Tax demands disputed

53.527

Income tax demands disputed

74.023

 

 

TOTAL

127.550

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

This form is for

Creation of charge

Corporate identity number of the company

U23201MH1966GOI013538

Name of the company

LUBRIZOL INDIA PRIVATE LIMITED

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

2nd Floor, VIP House 88 – C, Old Prabhadevi Road, Mumbai – 400 025, Maharashtra, India.

Type of charge

Book Debts

Movable Property

Particular of charge holder

State Bank of India, Commercial Branch, Opposite Shivaji Vidyalaya, Dadar (East), Mumbai – 400 014, Maharashtra, India.

e-mail: sbi.04114@sbi.co.in

Nature of description of the instrument creating or modifying the charge

1. Agreement of hypothecation of goods and assets

2. Letter regarding the grant of individual limits within the overall limit

(Collectively Constitute Single Charge)

Date of instrument Creating the charge

21.11.2008

Amount secured by the charge

Rs.120.000 Millions

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

Rate of Interest

Interest – at SBAR at monthly rests

 

Terms of Repayment

The Borrower shall on demand pay the whole amount due to the Bank with interest and cost.

 

Margin

1) Raw Materials, Stock in process, Finished Goods - 30%

 2) Book Debts - 50%

 

Extent and Operation of the charge

Security to cover principal amount together with interest, costs, charges and expenses etc.

 

Others

Details of credit facilities as under:

1. Demand Cash Credit          Rs.60.000 Millions

   DCC Book Debts(sub limit) (Rs.30.000 Millions)

   EPC (sub limit)                   (Rs.5.000 Millions)

2. Letter of credit                   Rs.30.000 Millions

3. Bank of Guarantee             Rs.30.000 Millions

Total                                      Rs.120.000 Millions

Short particulars of the property charged

First and exclusive charge and security by way of hypothecation of present and future Stocks and Book Debts.

 

 

 

SALES AND MARKETING

 

Domestic sales volume in 2011 is 3.46 % higher than in 2010 as the Indian economy continues to grow after the economic slow down in 2008.

 

Export sales volume in 2011 is 3.57 % lower than in 2010 due to reduced demand from LZ. The company expects future export sales to be lower in coming years.

 

 

FIXED ASSETS:

 

·         Lease hold land

·         Factory building

·         Plant machinery

·         Office equipments

·         Furniture and fixtures

·         Motor 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.53.90

UK Pound

1

Rs.87.60

Euro

1

Rs.70.00

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

NID

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

66

 

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.