MIRA INFORM REPORT

 

 

Report Date :

12.12.2013

 

IDENTIFICATION DETAILS

 

Name :

LUTHRA CHEM-TEX INDUSTRIES LIMITED (w.e.f. 26.03.2008)

 

LUTHRA DYEING AND PRINTING MILL (A DIVISION OF LUTHRA CHEM-TEX INDUSTRIES LIMITED)

 

 

Formerly Known As :

LUTHRA CHEM-TEX INDUSTRIES PRIVATE LIMITED

 

 

Registered Office :

252/2, G. I. D. C., Pandesara, Surat – 394221, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

27.12.1984

 

 

Com. Reg. No.:

04-007536

 

 

Capital Investment / Paid-up Capital :

Rs. 10.000 Millions

 

 

CIN No.:

[Company Identification No.]

U17119GJ1984PLC007536

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

SRTL00004E

 

 

PAN No.:

[Permanent Account No.]

AAACL4038Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The company is engaged in the business of dyeing, bleaching, and printing on grey fabrics.

 

 

No. of Employees :

400 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 150000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record.

 

Profitability of the company appears to be low. However, reserves of the company appears to be decent.

 

Trade relations are fair. Business is active. Payment are reported to be slow but correct.

 

The company can be considered for business dealing with some caution.

 

Note: As claimed by Mr. Ritesh Undela (G.M) that the subject was established in the year of 1982 as a proprietorship firm is a division of Luthra Chemtex Limited which is established in the year 1984.

 

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

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

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. Ritesh Undela

Designation :

Legal General Manager

Contact No.:

91-9377907001

Date :

09.12.2013

 

 

LOCATIONS

 

Registered/ Corporate Office :

252/2, G. I. D. C., Pandesara, Surat – 394221, Gujarat, India

Tel. No. :

91-261-2890606/ 7 / 8

Mobile No. :

91-9377907001 (Mr. Keshav Arora)

Fax No. :

91-261-2890600

E-Mail :

luthrachemtex@drdcs.net

amit.topiwala@luthraindia.com

ritesh.undela@luthraindia.com

mail@luthraindia.com

Website :

www.luthraindia.com

 

 

DIRECTORS

 

As on 30.09.2013

 

Name :

Mr. Rameshchandra Maherchandra Luthra

Designation :

Director

Address :

Luthra Niwas, A/1, Janta Nagar Society, New Civil Road, Surat - 395002, Gujarat, India

Date of Birth/Age :

14.05.1935

Date of Appointment :

27.12.1984

DIN No. :

00190253

 

 

Name :

Mr. Mannu Girishchandra Luthra

Designation :

Director

Address :

Luthra Niwas, A/1, Janta Nagar Society, New Civil Road, Surat - 395002, Gujarat, India

Date of Birth/Age :

12.08.1964

Date of Appointment :

01.03.2008

DIN No. :

00190367

 

 

Name :

Mr. Keshav Gyanchand Arora

Designation :

Director

Address :

A/301, Opera House, City Light Road, Surat - 395007, Gujarat, India

Date of Birth/Age :

05.06.1946

Date of Appointment :

30.03.2007

DIN No. :

01346151

 

 

Name :

Mr. Dhruv Girishchandra Luthra

Designation :

Director

Address :

Luthra Niwas, A/1, Janta Nagar Society, New Civil Road, Surat - 395002, Gujarat, India

Date of Birth/Age :

12.06.1987

Date of Appointment :

30.03.2007

DIN No. :

01594011

 

 

KEY EXECUTIVES

 

Name :

Mr. Dhiren R. Dave

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2013

 

Names of Shareholders (Equity Shares with Voting)

 

No. of Shares

 

Rameshchandra Maherchandra Luthra

 

9660

Sharda Rameshchandra Luthra

 

3800

Girish Rameshchandra Luthra

 

9755

Rameshchandra Luthra (HUF)

 

6300

Mannu Girishchandra Luthra

 

6135

Girish Luthra (HUF)

 

600

Drishti G. Luthra

 

9900

Dhruv G. Luthra

 

3850

Total

 

50000

 

 

Names of Shareholders (Equity Shares without Voting)

 

No. of Shares

 

Alka Diamond Industries Limited, India

 

2500

Javda India Impex Limited, India

 

2500

Vanguard Jewels Limited, India

 

2500

Girish Rameshchandra Luthra

 

20750

Mannu Girishchandra Luthra

 

16745

Anchal Properties Private Limited, India

 

2500

Hema Trading Company Private Limited, India

 

2500

Total

 

49995

 

 

As on 30.09.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Bodies corporate

13

Directors or relatives of Directors

80

Other top fifty shareholders

7

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in the business of dyeing, bleaching, and printing on grey fabrics.

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

400 (Approximately)

 

 

Bankers :

·         The Sutex Co-Operative Bank Limited, 2nd Floor, "Surajram Bachkaniwala Bhavan", Near Navjivan Circle, Udhna Magdalla Road, Surat - 395017, Gujarat, India

 

Surat People'sco-Op-Bank Limited, Vasudhara, Nanpura, Surat - 395004, Gujarat, India

 

 

Facilities :

SECURED LOANS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Term loans from bank

22.849

29.583

 

 

 

SHORT TERM BORROWINGS

 

 

From Bank

Cash Credit Overdraft from Bank

49.509

39.310

Total

72.358

68.893

 

NOTE:

 

LONG TERM BORROWINGS

 

(i) Term Loan of Rs.29.038 Millions (inciuding current maturities thereon) from Sutex Co-operative Bank Limited and secured (i) by way of extension of mortgage charge on Factory land and building situated at GiDC Pandesara, Surat, (ii) first charge by way of hypothecation on plant and machineries located at GIDC, Pandesara, Surat (iii) first charge by way of mortgage on Shop No. 14 and 15, Rushabh Textile Market. Ring Road Surat (iv) Stock and Book Debts, (v) Lien on Fixed Deposit Receipt of Rs. 1.775 Millions.The loan is repayable in 72 monthly installments of Rs. 0.890 Millions each (including interest @14% P.A.

 

(ii) Term Loan of Rs. 1.147 Millions (inciuding current maturities thereon) from The Sutex Co-operative Bank Limited and Secured by (i) first charge by way of hypothecation on ail plant and machineries located at GIDC, Pandesara, Surat. (ii) by way of extension of mortgage charge on Factory land and building situated at GIDC. Pandesara, Surat, (iii) by way of extension of mortgage on Shop No. 14 and 15, Rushabh Textile Market, Ring Road, Surat.he loan is repayable in 72  monthly installments of Rs. 0.046 Million each (inciuding interest @12.75% P.A.

 

(iii) The above Loans are also personally guaranteed by Directors of the company and also guaranted by relative of directors.

 

 

SHORT TERM BORROWINGS

 

(i) Cash Credit facility of Rs. 40.000 Millions taken from Sutex Co-Op Bank Limited is secured by way of (i) first charge by way of hypothecation on plant and machineries located at GIDC, Pandesara, Surat (ii) hypothecation of Stock and Book Debts, (iii) first charge by way of simple mortgage on Factory land and building situated at GIDC Pandesara, Surat (iv) Guarantee of all directors.

 

(ii) Company has taken the adhoc Credit Facility of Rs. 8.333 Millions (including current maturities thereon) from The Sutex Co-Op Bank Limited No specific security is given to the bank.

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Niranjan Desai and Company

Chartered Accountants

Address :

33-Maher Park-A, Athwagate, Ring Road, Surat – 395002, Gujarat, India

Tel. No. :

91-261-2476659/ 2461579

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

AAZPD2642J

 

 

Associates :

·         Gujarat Enviro Protection and Infrastructure Limited

Gujarat Enviro Protection and lnfrastructure (D& NH) Private Limited

Gujarat Enviro Protection and lnfrastructure (Haryana) Private

Gepil Aqua Recycling (Vadadla) Private Limited

Water Factory Balotra Private Limited

Fairdeal Textile Park Private Limited

Gujarat Eco Textile Park Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000

Equity Shares with Voting Rights

Rs.100/- each

Rs. 5.000 Millions

50000

Equity Share without Voting Rights

Rs.100/- each

Rs. 5.000 Millions

 

 

 

 

 

Total

 

Rs. 10.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000

Equity Shares with Voting Rights

Rs.100/- each

Rs. 5.000 Millions

49995

Equity Share without Voting Rights

Rs.100/- each

Rs. 5.000 Millions

 

 

 

 

 

Total

 

Rs. 10.000 Millions

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

10.000

10.000

10.000

(b) Reserves & Surplus

27.417

26.524

27.862

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

37.417

36.524

37.862

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

22.849

29.583

3.728

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

22.849

29.583

3.728

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

105.520

88.151

52.177

(b) Trade payables

34.280

26.805

32.784

(c) Other current liabilities

12.324

9.355

7.314

(d) Short-term provisions

6.435

4.555

6.067

Total Current Liabilities (4)

158.559

128.866

98.342

 

 

 

 

TOTAL

218.825

194.973

139.932

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

21.915

21.317

22.907

(ii) Intangible Assets

0.511

0.518

0.531

(iii) Capital work-in-progress

0.000

0.034

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

18.568

18.568

17.895

(c) Deferred tax assets (net)

1.134

0.861

0.514

(d)  Long-term Loan and Advances

3.102

2.986

2.783

(e) Other Non-current assets

4.072

3.618

0.160

Total Non-Current Assets

49.302

47.902

44.790

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

6.612

5.276

5.591

(c) Trade receivables

68.431

50.469

51.340

(d) Cash and cash equivalents

9.842

20.075

23.296

(e) Short-term loans and advances

75.572

59.181

0.535

(f) Other current assets

9.066

12.070

14.380

Total Current Assets

169.523

147.071

95.142

 

 

 

 

TOTAL

218.825

194.973

139.932

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

 

SALES

 

 

 

 

 

Income

251.766

205.211

231.146

 

 

Other Income

9.936

4.443

4.850

 

 

TOTAL                                     (A)

261.702

209.654

235.996

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of raw materials consumed

60.117

46.062

60.635

 

 

Employee Benefit Expenses

67.252

57.282

59.334

 

 

Other Expenses

114.865

90.482

100.864

 

 

Prior Period Expenses

0.000

0.023

0.200

 

 

Changes in inventories of WIP

(1.202)

(0.021)

0.432

 

 

TOTAL                                     (B)

241.032

193.828

221.465

 

 

 

 

 

 

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

20.670

15.826

14.531

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

14.409

9.002

6.966

 

 

 

 

 

 

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

6.261

6.824

7.565

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

4.969

5.453

5.833

 

 

 

 

 

 

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

1.292

1.371

1.732

 

 

 

 

 

Less

TAX                                                                  (H)

0.399

2.709

1.083

 

 

 

 

 

 

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

0.893

(1.338)

0.649

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

8.93

(13.38)

6.49

 

 


KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

0.34

(0.64)

0.28

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.51

0.67

0.75

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.65

0.78

1.43

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.03

0.04

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

3.43

3.22

1.48

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.07

1.14

0.97

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG TERM DEBTS

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

 

 

 

 

Current Maturities of long term borrowings

7.337

7.125

5.087

 

 

 

 

 

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

Yes

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

No

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10402003

06/02/2013

2,000,000.00

THE SUTEX CO-OPERATIVE BANK LIMITED

2ND FLOOR, "SURAJRAM BACHKANIWALA BHAVAN", NEAR N
AVJIVAN CIRCLE, UDHNA MAGDALLA ROAD, SURAT - 395017, GUJARAT, INDIA

B67704015

2

10346640

23/03/2012

35,500,000.00

THE SUTEX CO-OPERATIVE BANK LIMITED

2ND FLOOR, "SURAJRAM BACHKANIWALA BHAVAN", NEAR N
AVJIVAN CIRCLE, UDHNA MAGDALLA ROAD, SURAT - 395017, GUJARAT, INDIA

B36687077

3

10268376

31/01/2013 *

77,500,000.00

THE SUTEX CO-OPERATIVE BANK LIMITED

2ND FLOOR, "SURAJRAM BACHKANIWALA BHAVAN", NEAR N
AVJIVAN CIRCLE, UDHNA MAGDALLA ROAD, SURAT - 395017, GUJARAT, INDIA

B67707612

4

10246224

24/09/2010

40,000,000.00

THE SUTEX CO OPERATIVE BANK LIMITED

2ND FLOOR, "SURAJRAM BACHKANIWALA BHAVAN", NEAR N
AVJIVAN CIRCLE, UDHNA MAGDALLA ROAD, SURAT - 395017, GUJARAT, INDIA

A96636154

 

* Date of charge modification

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

From Bank

Cash Credit Overdraft from Bank

8.333

0.000

From Related Parties

47.678

48.841

Total

56.011

48.841

 

 

CHANGE OF ADDRESS

 

The registered office of the company has been shifted from Plot No.251, GIDC, Pandesara, Surat – 394221, Gujarat, India to the present address w.e.f. 14.09.2009.

 

 

CORPORATE INFORMATION

 

Subject is a domestic company without public interest and incorporate under the provisions of the companies Act, 1956. The company is engaged in the business of dyeing, bleaching, and printing on grey fabrics. The company caters to domestic markets.

 

 

CONTINGENT LIABILITIES:

 

PARTICULARS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

Demand by various revenue authorities

1.035

1.414

Guarantee given by the company

390.000

390.000

Bank guarantee in favour of Gujarat Gas Company Limited

0.932

0.000

Total

391.967

391.414

Note:

 

The Central Excise Demand of Rs. 0.670 Million and Textile Committee demand of Rs.0.366 Million The Company is in appeal before various appellate authorities against these demands. The company is hopeful of favorable decisions in these appeals and hence has not made any provisions in the books towards these  demands. However The Company has deposited Rs.0.252 Million towards the disputed demand.

 

Corporate guarantee given by the company Rs 390.000 Millions against Term Loan sanctioned to its associate companies, However, outstanding loan as on balance sheet date is Rs. 221.509 Millions.

 

 

FIXED ASSETS

 

v                  Tangible Assets

Land

Building

Plant and Machinery

Vehicles

Furniture and Fixtures

Office Equipments

Computer

 

v                 Intangible Assets

Goodwill

Computer Software

 


 

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.61.33

UK Pound

1

Rs.100.79

Euro

1

Rs.84.38

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

MRI

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

 

30

 

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.