Business information report

1. Summary Information

 

 

Country

India

Company Name

DAMODAR VALLEY CORPORATION

Principal Name 1

Mr. Amar Nath Mishra

Status

Good

Principal Name 2

Mr. B P Singh

 

 

Registration #

--

Street Address

DVC Towers, Vip Road, Kolkata-700054, West Bengal, India 

Established Date

07.07.1948

SIC Code

--

Telephone#

91-33-23559940

Business Style 1

Controller

Fax #

91-33-23550585

Business Style 2

--

Homepage

www.dvc.gov.in

Product Name 1

electrical energy

# of employees

Not Available

Product Name 2

soil conservation

Paid up capital

Rs. 52,868,973,000/-

Product Name 3

fisheries

Shareholders

--

Banking

State Bank of India

 

Public Limited Corp.

--

Business Period

65 Years

IPO

--

International Ins.

-

Public Enterprise

--

Rating

A (68)

Related Company

Relation

Country

Company Name

CEO

Joint Venture Company

India

Maithon Power Limited

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2012

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

83,839,637,000

Current Liabilities

48,638,738,000

Inventories

7,283,636,000

Long-term Liabilities

226,114,938,000

Fixed Assets

281,744,475,000

Other Liabilities

4,358,769,000

Deferred Assets

0,000

Total Liabilities

279,112,445,000

Invest& other Assets

215,237,013,000

Retained Earnings

256,123,343,000

 

 

Net Worth

308,992,316,000

Total Assets

588,104,761,000

Total Liab. & Equity

588,104,761,000

 Total Assets

(Previous Year)

 

 

 

P/L Statement as of

31.03.2012

(Unit: Indian Rs.)

Sales

74,359,184,000

Net Profit / (Loss)

(89,131,000)

Sales(Previous yr)

56,355,948,000

Net Profit(Prev.yr)

1,005,755,000


MIRA INFORM REPORT

 

 

Report Date :

08.08.2013

 

IDENTIFICATION DETAILS

 

Name :

DAMODAR VALLEY CORPORATION

 

 

Registered Office :

DVC Towers, Vip Road, Kolkata-700054, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

07.07.1948

 

 

Capital Investment / Paid-up Capital :

Rs. 52868.973 Millions

 

 

Legal Form :

Government Organization

 

 

Line of Business :

Control of floods, provision of irrigation, generation, transmission and distribution of electrical energy and also soil conservation, unified tourism, fisheries, socio-economic and health development of villages

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (68)

 

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 1235960000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a multipurpose river project was set up as a statutory corporation under a special act of parliament, Damodar Valley Corporation Act, 1948 (DVC Act). The Government of India (GOI) the Government of West Bengal (GOWB) and the Government of Bhiar (GOB) jointly contributed to the capital of the subject.

 

The ratings draw strength from the strategic importance of Damodar Valley Corporation which is an old and established body having a fine track record.

 

The financials of the corporation portray huge amount of external borrowings and deficit in the income after tax as compared to the expenditure. However, financial position appears to be strong and healthy. Trade relations are fair. Business is active. Payment terms are regular and as per commitments.

 

In view of government support, the subject 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.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

AA (Long Term Bank Facilities)

Rating Explanation

High degree of safety and very low credit risk.

Date

11.07.2013

 

Rating Agency Name

CARE

Rating

A1+ (Short Term bank Facilities)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

11.07.2013

 

 

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 DECLINED BY

 

Management non co-operative (Tel No.:-91-3241-262287)

 

 

LOCATIONS

 

DVC Headquarters :

DVC Towers, Vip Road, Kolkata-700054, West Bengal, India 

Tel. No.:

91-33-23559940

Fax No.:

91-33-23550585

Website :

www.dvc.gov.in

 

 

Maithon

P.O Maithon Dam, District Dhanbad, Jharkhand-828207, India 

 

 

Mejia Thermal Power Station

Durlavpur, P.O. MTPS, District Bankura– 722183, West Bengal, India 

 

 

Durgapur Thermal Power Station

P.O: Durgapur, District Burdwan – 713207, West Bengal, India 

 

 

Bokaro Thermal Power Station

District-Bokaro, Jharkhand Pin-829107

 

 

Chandrapura Thermal Power Station

District-Bokaro Jharkhand Pin-825303

 

 

Durgapur Thermal Power Station

District-Burdwan, West Bengal

 

 

Koderma Thermal Project

District-Koderma, Jharkhand

 

 

Raghunathpur Thermal Project

District-Purulia, West Bengal, India 

 

 

Panchet

P.O Panchet, District Dhanbad, Jharkhand-828206, India 

 

 

Tilaiya

District Hazaribagh, Jharkhand– 825413

 

 

Konar

P.O Konar District. Hararibagh, Jharkhand, India 

 

 

Bermo

P.O. Bermo, District. Bokaro, Jharkhand, India 

 

 

Soil Conservation Department

District Hazaribagh, Jharkhand– 825301, India 

 

 

New Delhi Liaison Office

DVC NBCC Towers, Hall No.03, Bikaji Kama Place, New Delhi-110066

 

 

Ranchi Liaison Office

DVC BNS House,Main Road, PO-Hinoo, Ranchi – 834002

 

 

Tilaiya

District Hazaribagh, Jharkhand, Pin – 825413

 

 

DIRECTOR

 

Name :

Mr. Amar Nath Mishra

Designation :

Director (Opn. / Tech.)

 

 

Name :

Mr. B P Singh

Designation :

Director (Project) (Actg.)

 

 

Name :

Mr. A Mallik

Designation :

Director (System) (Actg.)

 

 

Name :

Mr. A Baksi

Designation :

Director (HRD)

 

 

Name :

Mr. T K Gupta

Designation :

Director (Accounts)

 

 

KEY EXECUTIVES

 

CHIEF ENGINEER-ll(M/E/C/C and l/Comm)

 

 

·  Dr. Satya Narayan Sarkar - CE-I (M), R and D.

·  Shri    Dhrubesh Basu - CE-I(M), GPE, Kolkata

·  Shri    Arun Kumar Das - CE-I(M), OS and U, Kolkata.

·  Shri    Jitendra Kumar Singh - CE-I(M), RTPS

·  Shri    Prabir Sen Roy - CE-I(M), DTPS

·  Shri    Rameswar Basuri - CE-I(M), CTPS

·  Shri    Ajit Prasad - CE-I(M), BTPS'A'

·  Shri    Debashis Mitra - CE-I(M), MTPS

·  Shri    Kashi Nath Singh - CE-I(M), Maithon

·  Shri    SudhakarJha - CE-I(M), DTI, CTPS, Chandrapura

·  Shri    Shyamal Kumar Bhattacharjee - CE-I(M), CSO, Maithon

·  Shri    Girish Prasad Singh - CE-I(M), BTPS'B'

·  Shri    Krishna Kumar Singh - CE-I(M), MHS, Maithon

·  Shri    Chandreswar Choudhury - CE-I(M), Fuel, Kolkata

·  Shri    Amitava Dasgupta - CE-I(E), Kolkata

·  Shri    Ashok Kumar Jain - CE-I(E), Maithon

·  Shri    Kaviraj Sahu - CE-I(E),Trans, Maithon

·  Shri    Tapan Bandopadhyay - CE-I(E), TSC, Maithon

·  Shri    Amitava Nayak - CE-I(E),CLD, Maithon

·  Shri    Prasanta Kumar Das - CE-I(E),CMM, Kolkata

·  Shri    Prabir Kumar Choudhury - CE-I(E), Commercial, Kolkata

·  Shri    Narendra Singh Khamesra - CE-I(E), Maithon.

·  Md Mustaque Ahmed - CE-I(E), CTC, Maithon

·  Shri    Birendra Kr. Singh - CE-I(E), REP, Ranchi

·  Shri    Siddheswar Prasad Verma - CE-I(C) Maithon

·  Shri    Pallav Roy - CE-I(C) Additional Secretary, Kolkata

·  Shri    Dipak Kumar Dutta - CE-I(Commercial), Kolkata

·  Shri    Panna Lai Saha - CE-I (C and l), Kolkata.

 

 

BUSINESS DETAILS

 

Line of Business :

Control of floods, provision of irrigation, generation, transmission and distribution of electrical energy and also soil conservation, unified tourism, fisheries, socio-economic and health development of villages

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         State Bank of India

·         United Bank of India

·         Bank of India

·         Punjab National Bank

·         Canara Bank

·         Union Bank of India

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Loan From PFC, FIS

141624.945

141352.158

PSU Bonds Guaranteed By Government of India 

17000.000

0.000

Short Term Bank Accommodation

30333.691

26051.633

 

 

 

TOTAL

188958.636

167403.791

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Comptroller and Auditor General of India

Chartered Accountant

 

 

Joint Venture Company :

·         Maithon Power Limited

·         Bokaro Power Supply Company (Private) Limited

·         DVC Emta Coal Mines Limited

·         Damodar Valley Tourism Development Company Private Limited

·         National High Power Testing Laboratory Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

CAPITAL ACCOUNT

 

 

PARTICULARS

POWER

IRRIGATION

FLOOD CONTROL

TOTAL

Central Government

18136.667

0.000

70.000

18206.667

W B Government

14866.895

1855.229

124.668

16846.792

Bihar Government

17812.851

2.663

0.000

17815.514

 

TOTAL

 

52868.973


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

52868.973

50204.403

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

256123.343

249812.171

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

308992.316

300016.574

LOAN FUNDS

 

 

 

1] Secured Loans

 

188958.636

167403.791

2] Unsecured Loans

 

37156.302

22017.816

TOTAL BORROWING

 

226114.938

189421.607

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

535107.254

489438.181

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

281744.475

231450.441

Capital work-in-progress

 

203042.882

213613.227

Intangible Assets

 

77.915

76.860

 

 

 

 

INVESTMENT

 

11742.887

12490.868

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

7283.636

7096.202

 

Sundry Debtors

 

60775.694

42612.860

 

Cash & Bank Balances

 

540.138

5523.815

 

Other Current Assets

 

17516.263

11939.446

 

Loans & Advances

 

5007.542

5127.779

Total Current Assets

 

91123.273

72300.102

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

 

12581.586

7187.958

 

Other Current Liabilities

 

36057.152

30896.944

 

Provisions

 

4358.769

3391.915

Total Current Liabilities

 

52997.507

41476.817

Net Current Assets

 

38125.766

30823.285

 

 

 

 

MISCELLANEOUS EXPENSES

 

326.697

876.762

Provident Fund

 

46.632

106.738

 

 

 

 

TOTAL

 

535107.254

489438.181

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

 

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Sales

 

74359.184

56355.948

 

 

Rental and Wheeling

 

48.820

50.238

 

 

Misc Direct Schemes

 

915.712

467.609

 

 

Misc Shares of Dams and Subs. Activities

 

5.650

10.931

 

 

Dividend Income from PTC and BPSCL

 

28.528

25.528

 

 

Interest Income from STD

 

2.029

13.685

 

 

Interest on State Bonds

 

653.484

791.060

 

 

TOTAL                                     (A)

 

76013.407

57714.999

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Operation and Maintenance

 

49083.658

38942.856

 

 

Purchase of Power

 

8273.972

6373.254

 

 

Transmission and Distribution Charges

 

890.405

852.307

 

 

Direction and Central Services

 

254.647

234.503

 

 

Share of Subsidiary activities

 

180.575

300.794

 

 

General Overhead Charges

 

1588.613

395.868

 

 

TOTAL                                     (B)

 

60271.870

47099.582

 

 

 

 

 

Less

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

 

15741.537

10615.417

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

8712.374

5976.465

 

 

 

 

 

 

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

 

7029.163

4638.952

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

6134.128

3452.145

 

 

 

 

 

 

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

 

895.035

1186.807

 

 

 

 

 

Less

TAX                                                                  (H)

 

984.166

181.052

 

 

 

 

 

 

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

 

(89.131)

1005.755

 

 

 

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

No

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

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

No

31]

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

No

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

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Bonds

 

 

Guaranteed By Government of India 

0.000

500.000

Public Sector

6880.000

7240.000

Other Loan

 

 

Short Term Bridge Loan

8000.000

5000.000

Short Term Bank Borrowings

22000.000

9000.000

Loan From GOI for RVP Scheme

43.750

45.000

Exim Bank Loan

232.552

232.816

 

 

 

TOTAL

37156.302

22017.816

 

FIXED ASSETS

 

·         Land

·         Building

·         Roads Bridge and Railway Siding

·         Dams and Spill Way

·         Barrage and Barrage Gates

·         Canals and Service Road

·         Machinery and Equipment

·         Switch Gear

·         Tower, Poles and Fixtures

·         Construction Equipment

·         Other Assets

·         Power House Plant and Machinery

 

WEBSITE DETAILS

 

FORMATION

DVC, a legacy to the people of India, emerged as a culmination of attempts made over a whole century to control the wild and erratic Damodar river. The river spans over an area of 25,000 sq. kms covering the states of Bihar (now Jharkhand) and West Bengal.


The Damodar Valley has been ravaged frequently by floods of varying intensities and the first of the major recorded flood dates back to 1730. Thereafter serious floods occurred at regular intervals, but it was the flood of 1943 that left the worst devastation in its wake. As a result, the Governor of Bengal appointed a Board of Inquiry headed by the Maharaja of Burdwan and the noted physicist Dr. Meghnad Saha as member. In their report, the Board suggested creation of an authority similar to the Tennessee Valley Authority (TVA) of United States of America. The Government of India then appointed Mr. W.L. Voorduin, a senior engineer of the TVA to make recommendations for comprehensive development of the valley. Accordingly, in August, 1944, Mr. Voorduin submitted his "Preliminary Memorandum on the Unified Development of the Damodar River".


Mr. Voorduin’s "Preliminary Memorandum" suggested a multipurpose development plan designed for achieving flood control, irrigation, power generation and navigation in the Damodar Valley. Four consultants appointed by the Government of India examined it. They also approved the main technical features of Voorduin’s scheme and recommended early initiation of construction beginning with Tilaiya to be followed by Maithon.


By April 1947, full agreement was practically reached between the three Governments of Central, Bengal and Bihar on the implementation of the scheme and in March 1948, the Damodar Valley Corporation Act (Act No. XIV of 1948) was passed by the Central Legislature, requiring the three governments – the Central Government and the State Governments of West Bengal and Bihar (now Jharkhand) to participate jointly for the purpose of building the Damodar Valley Corporation.


The Corporation came into existence on 7th July, 1948 as the first multipurpose river valley project of independent India.

 

 

NEWS

 

DAMODAR VALLEY CORPORATION 'S HYDEL UNIT LIKELY IN HAZARIBAG

HAZARIBAG: Damodar Valley Corporation (DVC) is weighing the option of setting up of a hydel power station at Bishungarh on the lines of Telaiya and Maithon units.

R N Sen, the chairman of DVC, visited visited the site of Konar dam, which was built by DVC in 1958, and explored the possibility of setting up of the power unit.

Villagers of Bishungarh had approached the chairman with the request to set up the hydel power unit. They are even willing to give their land to DVC.

However, Sen on Tuesday informed the group of villagers that once funds are made available to the company, the proposal to set up the power station on Konar dam would be taken up.

DVC has already taken up the proposal with the World Bank, which is expected to release funds for the same.

The memorandum that the villagers handed over to Sen demanded that the Konar dam and its surrounding areas be developed as a tourist complex so that local people can get an opportunity for self-employment.

The villagers had also demanded increase in SIP fund and water from Konar dam for irrigation and household purposes.

They had also demanded registration of DVC High School in Konar under the Jharkhand Academic Council for the benefit of the teachers and students.

Due to non-recognition of the DVC High School, it suffered funds problem and lacked infrastructure. The villagers' delegation was led by the president of the Visthapit Sanghars Samittee president Dineshwar Mandal. It may be mentioned here that prior to the visit of the present Chairman of DVC at Konar no other Chairman visited the place during last 16 years.

 

 

 

 


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 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. 61.39

UK Pound

1

Rs. 94.17

Euro

1

Rs. 81.69

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLV

 

 

Report Prepared by :

DPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

68

 

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.