MIRA INFORM REPORT

 

 

Report Date :

12.12.2013

 

IDENTIFICATION DETAILS

 

Name :

CENTURY PHARMACEUTICALS LIMITED

 

 

Registered Office :

 406 Word Trade Centre Sayjigunj, Baroda - 390005 Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

16.11.1989

 

 

Com. Reg. No.:

013000

 

 

Capital Investment / Paid-up Capital :

Rs.30.241 Millions

 

 

CIN No.:

[Subject Identification No.]

U24230GJ1989PLC013000

 

 

Legal Form :

A Closely Held Public Limited Liability Subject

 

 

Line of Business :

Manufacturer of API Pharmaceutical Products

 

 

No. of Employees :

50 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 542144

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established Subject having satisfactory track.

 

Profitability of the Subject appears to be fair. General financial position of the Subject appears to be sound and healthy.

 

Trade relations are reported as fair. Business is active. Payments are usually correct.

 

The Subject can be considered 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 – June 30, 2012

 

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

 

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

 

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

 

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

 

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

 

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

 

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

 

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

 

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Long Term Fund based cash credit Limits : BBB-

Rating Explanation

Moderate degree of safety and moderate credit risk.

 

 

Rating

Short Term Fund based cash credit Limits : A3

Rating Explanation

Moderate degree of safety high credit risk.

Date

June, 2013

 

 

RBI DEFAILTERS’ LIST STATUS

 

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

 

 

 

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

 

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

 

 

INFORMATION PARTED BY

 

Name :

Ms. Pooja

Designation :

Accounts Department

Contact No.:

91-265-2361978

Date :

03.12.2013

 

 

LOCATIONS

 

Registered Office :

406 Word Trade Centre Sayjigunj, Baroda - 390005 Gujarat, India

Tel. No.:

91-265-2361978

Fax No.:

91-265-2226023

E-Mail :

info@centurypharma.com

Website :

www.centurypharma.com

Location :

Owned

 

 

Factory :

Halol, Gujarat, India

 

 

DIRECTORS

 

AS ON 11.09.2013

 

Name :

Mrs. Vaishali Janak Sheth

Designation :

Whole Time Director

Address :

54, Suvarnapuri Society, Chikuwadi, Jetalpur Road, Vadodara 390007

Date of Birth/Age :

31.08.1959

Date of Appointment :

16.11.1989

DIN No.:

00049421

 

 

Name :

Mr. Janak Kanalyalal Sheth

Designation :

Managing Director

Address :

54, Suvarnapuri Society, Chikuwadi, Jetalpur Road, Vadodara 390007

Date of Birth/Age :

17.10.1953

Date of Appointment :

16.11.1989

DIN No.:

00049392

 

 

Name :

Mr. Manharlal Ratanlal Katwala

Designation :

Director

Address :

21, Anupam Society, Near Sardar Baug Atithi Gruh Alkapuri, Vadodara – 390007

Date of Birth/Age :

08.10.1931

Date of Appointment :

20.07.2000

DIN No.:

00049787

 

 

Name :

Mr. Rajnikant Gokuldas Kadakia

Designation :

Director

Address :

5, Ioc Nagar housing society, Old padre Road, Vadodara – 390015

Date of Birth/Age :

04.01.1929

Date of Appointment :

18.09.2010

DIN No.:

03256416

 

 

Name :

Mr. Arvind Modi

Designation :

Nominee Director

Address :

M/S. Kisan Kiran 150 Bapu Marg, Sadar Bazar Champa Janigir Chhattisgarh – 495671, India

Date of Birth/Age :

07.09.1980

Date of Appointment :

05.05.2012

DIN No.:

0527760

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 11.09.2013

 

Names of Shareholders

 

No. of Shares

Janak Kanalyalal Sheth

 

1465180

Vaishali Janak Sheth

 

606700

Rajesh K Sheth

 

803010

Subodh Sharoff

 

3010

Manharlal Ratanlal Katwala

 

10

GVFL Trustee Subject Private Limited, Ahmedabad

 

43120

Jairam Shastry

 

3000

R J Sheth

 

100100

Total

 

3024130

 

AS ON 11.09.2013

 

Category

Percentage

Directors or relatives of Directors

98.37

Other top fifty shareholders

0.20

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of API Pharmaceutical Products

 

 

Terms :

 

Selling :

Cash, Credit 

 

 

Purchasing :

Cash, Credit 

 

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

50 (Approximately)

 

 

Bankers :

·         Bank of Baroda, IBB Branch, Ground Floor, Surajplaza Building, Sayajigunj, Vadodara - 380006,Gujarat, India

·         ICCI Bank Limited, JMC House, 9th Floor, Opposite Parimal Garden, Ambawadi , Ahmedabad – 380008, Gujarat, India

 

 

Facilities :

 

SECURED LOAN

 

Rs. In Millions

31.03.2013

Rs. In Millions

31.03.2012

Working Capital Loam from Banks  (repayable on demand)

 

 

Cash Credit

41.110

2.983

Foreign Bills Purchase

10.143

0.000

Buyers Credit from Foreign Banks (In foreign currency) (within LC limit* from domestic bank)

0.000

42.781

TOTAL

51.253

45.764

 

 

 

 

SECURED:

 

The Bank Facilities of Working Capital such as Cash Credit, Packing Credit (INR and fC), Foreign and Inland Bills Purchase / Discounted, Buyers' Credit, Letters of Credit and Bank Guarantee are obtained from Bank of Baroda and are secured by hypothecation of Subject's entire Stocks of Raw Materials, Semi-Finished and Finished Goods. Consumable Stores and Spares and such other movables Including Book-Debts and Receivables (both present and future) and by first charge on ah Plant and Machineries, Electrical Installations, Furniture’s and Fixtures, Office Equipment and other movable Fixed Assets of (ha Subject situated at the Factory and Office premises. All faculties are further secured by Equitable Mortgage of Factory Land and Building of the Subject situated at Kalol as well as personal guarantee of three Directors of the Subject

 

The Bank has granted Cash Credit Facility upto a maximum of Rs.80.000 Millions for pre and post sale working capital requirement of the Subject which comes an Interest at the rate of 12.25% p.a.

 

The Buyers Credit which was availed by the Subject from foreign banks In the previous financial year were secured by counter-guarantee by Bank of Baroda given to the said foreign banks against and within the LC Limits that was sanctioned by Bank of Baroda to The Subject. The obligation with respect to the same has been discharged by the Subject with interest In the year under report and the resultant loss on account of foreign exchange rate difference is duly accounted under the 'Finance Cost",

 

The Subject has discounted various Foreign Bills from time to Time with Bank of Baroda for generating post shipment finance. The Bank ha* sanctioned a sub limit of Rs.30.000 millions with respect to FBP/FBOVFCBP/FCBD within the overall limit of Rs.80.000 Millions towards the Cash Credit facility sanctioned by the bank. This facility carries an Interest rate of 11.25% pra.

 

UNSECURED LOAN

 

Rs. In Millions

31.03.2013

Rs. In Millions

31.03.2012

Debentures

2111883% Optionally Convertible Debenture of Rs.100 each (P Y 21188)

21.119

21.119

Others

From Biotech Consortium India Limited

5.200

2.000

TOTAL

26.319

23.119

 

DEBENTURES:

The Subject raised a sum of Rs.25.000 Millions from Gujarat Venture Finance Limited by way of Private placement of Equity Shares end Debentures vide agreements did. 23rd January, 2006 end 31st January, 20O9 Out of the same, cum of Rs.3.681 Millions has been invested by GVFL towards subscription of 43,120 Equity Shares of the Subject of Rs. 10 each at an average price of Rs. 90 par share. The balance amount of Rs, 21.119 Millions invested has been Invested by way of subscription to 2,11,156 3% Optionally Convertible Debentures of Ra 10Q/-each which ere unsecured.

 

The 3% OCD's Issued to GVFL ere convertible at the option of GVFL, in full or In Dart, any time after 31st  March, 2DH at a conversion p/E multiple of 14, on an average EPS of year ended 31" March, 20l0 and 31st March. 2011, of the audited statement of the Subject.

 

GVFL shall have an option to redeem the OCD a in full or In pen, any time after 31st March, 2011 sobs to provide an Internal rate of return of 25% on said OOP's.

 

OCD's carry simple Interest of 3% per annum and Subject has a moratorium on Interest payment Ml conversion. GVFL snail haws an option to convert the accumulated interest Into equity at the time of conversion of OCD's to equity on the same terms and conditions as applicable to The OCD's

 

if equity shares are Issued to any other investor by the Subject before conversion of OCD into equity shares, then GVFL shall have the option to convert the OCD into equity share within 6 months from the data of such Investment by the other Investor The conversion price of the OCD's shall be a price  per equity shale which is at a discount of 15% on the price tor each equity share Issued to such other investor.

 

UNSECURED LOANS FROM OTHERS:

 

The subject has been sectioned an unsecured assistance of Rs.10.000 Millions by ha Government of India. Ministry of Science and Technology, Department of Bio-Technology under Its SIBRI scheme for the Subject Bio-Technology Research Activities. The sanctioned amount consists of Grant-in-Aid of Rs. 1.000 Millions and Loan of Rs,9.000 millions with the total amount of Rs. 10.000 Millions to be disbursed in 3 Installments, Till the end of the year under report, a sum of Rs.9.000 Millions had been released in favour at the Subject consisting of a Grent-in-Aid of Rs1.000 Millions and Loan of Rs8.0000 Millions.

 

Out of the four components, amount a sum of Rs.1.500 millions was returned by the Subject to the preceding year since the same was received against procurement of certain equipment for the biotech research but wen not ultimately acquired by the Subject. Further, the rnoratoriornon the repayment on the loan and the interest to be charged on the loan, if any, was not specified in the sanction and disburament orders. However, as per the Information available with the Subject, it is required to pay the outstanding amount of loan of Rs6.500 millions In 10 equal yearly in a installments with the payment of the year under report.

 

Out of the remaining balance amount of Rs 5.850 Millions from the lean component Rs 5.200 Millions hat been Shown as Long term borrowing under the head unsecured Loans - Others' and the remaining amount of Rs. 65.000 Millions has been shown under "Other Current liabilities" being Fie amount of Installment due to be paid In the next reporting period.

 

The Interest to be charged on the loan. It any has not been specified In the sanction and disbursement' orders. Consequently no provision for Interest payable. If any, on the loan has bean made by the Subject as at the yea/ end.

 

The Grant-in aid of Rs.1.000 Million including Rs.0500 Million received in the year under report has been sanctioned against the manpower cost on the biotechnology research and hence the said Rs.0.500 pertaining to the year

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Naresh and Subject

Chartered Accountant

Address :

City Enclave, Near Baroda High School, Opp Polo Ground, Vadodara – 390001, Gujarat, India

 

 

Associates/Subsidiaries :

NA

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

400000

Equity Shares

Rs.10/- each

Rs.4.000 Millions

 

 

 

 

 

Issued, Subscribed and Paid-up Capital :

No. of Shares

Type

Value

Amount

3024130

Equity Shares

Rs.10/- each

Rs.30.241 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

30.241

30.241

30.241

(b) Reserves and Surplus

105.295

88.176

78.595

(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)

135.536

118.417

108.836

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

26.319

23.119

53.232

(b) Deferred tax liabilities (Net)

17.609

17.783

15.942

(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)

43.928

40.902

69.174

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

51.254

45.764

55.022

(b) Trade payables

43.891

30.219

57.365

(c) Other current liabilities

6.518

5.711

7.772

(d) Short-term provisions

6.827

1.871

8.331

Total Current Liabilities (4)

108.490

83.565

128.490

 

 

 

 

TOTAL

287.954

242.884

306.500

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

106.500

110.494

111.391

(ii) Intangible Assets

0.015

0.030

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.822

1.253

1.254

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

107.337

111.777

112.645

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

37.509

27.065

83.979

(c) Trade receivables

98.426

55.307

75.957

(d) Cash and cash equivalents

9.097

12.866

5.771

(e) Short-term loans and advances

35.585

35.869

28.148

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

180.617

131.107

193.855

 

 

 

 

TOTAL

287.954

242.884

306.500

 

 

PROFIT and LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

414.246

458.182

451.543

 

 

Other Income

3.016

1.794

1.148

 

 

TOTAL                                     (A)

417.262

459.976

452.691

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

329.421

354.345

404.499

 

 

Purchase of Stock in trade

7.863

4.139

6.507

 

 

Changes in inventories of finished goods work in progress and stock in trade

(1.406)

28.403

(28.429)

 

 

Employees Benefit Expenses

12.178

10.501

8.080

 

 

Other Expenses

29.783

37.083

25.238

 

 

Exceptional Items

(0.393)

(4.374)

0.013

 

 

TOTAL                                     (B)

377.446

430.097

415.908

 

 

 

 

 

Less

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

39.816

29.879

36.783

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

11.174

11.900

9.845

 

 

 

 

 

 

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

28.642

17.979

26.938

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

5.022

4.848

4.769

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

23.620

13.131

22.169

 

 

 

 

 

Less

TAX                                                                  (I)

6.501

3.551

9.001

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

17.119

9.580

13.168

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

133.329

47.311

NA

 

TOTAL EARNINGS

133.329

47.311

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

276.757

250.259

NA

 

 

Consumables and Materials

0.083

1.583

NA

 

TOTAL IMPORTS

276.840

251.842

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.65

3.17

--

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

4.10

2.09

2.91

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

5.70

2.86

4.91

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.91

5.41

7.23

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.17

0.11

0.20

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.57

0.58

0.99

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.66

1.57

1.51

 

 

 

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

Yes

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

No

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

No

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

 

PERFORMANCE REVIEW & NEW DEVELOPMENTS

 

During the period, the world economy stayed subdued. The Indian economy continued to struggle with slow down in manufacturing and infrastructure sectors, lack luster government policies, sluggish capital market, fluctuating crude oil prices, increased in basic raw material costs, sliding of rupee and higher finance cost

 

In such challenging, phase, the Subject continued to achieve a steady performance in both API section and Biotech RandD section. The API business mainly comprises of manufacturing of products namely, Oxytetracycline Salts. Chloramphenicol Salts, Erythromycin Salts used by the formulators. The Subject has continued is trend and developed generic drugs namely Ofloxacin during the year and successfully launched the same in the market. In Biotech Rand D Section, the Subject carrying out R and D activities relating to development of Apoptosis - including human - origin Fee - based chimeric proteins for targeted elimination of mast cells and basophils : a new approach for allergy and asthma treatment under the venture funding from GVFL,

 

In overall, the revenues for the year ended on 31.03.2013 decreased to Rs. 417.300 Millions as compared to Rs. 459.900 Millions in the previous year However, due to our focus on direct exports from deemed exports wherein realization of sale proceeds was in foreign currencies, the Subject could improve upon its margins and hence, the profit after tax (PAT) for the FY 31.03.2013 arrived at Rs. 17.100 Millions as against Rs. 9.500 Millions in the previous year

 

 

VIEW INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10268960

04/07/2012 *

323,500,000.00

BANK OF BARODA

IBB Branch, Ground Floor,, Surajplaza Building, S 
ayajigunj, Vadodara, Gujarat - 380006, INDIA

B43069442

2

10173435

07/09/2009

2,500,000.00

DEPARTMENT OF BIOTECHNOLOGY

BLOCK 2, CGO COMPLEX,, LODHI ROAD,, NEW DELHI, De 
lhi - 110033, INDIA

A68898493

3

10086463

16/12/2011 *

323,500,000.00

BANK OF BARODA

IBB BRANCH, GROUND FLOOR,, SURAJPLAZA BUILDING, S 
AYAJIGUNJ, VADODARA, Gujarat - 380006, INDIA

B28326973

 

 

 


CMT REPORT (Corruption, Money Laundering and 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 Subject 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 Subject’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.61.62

UK Pound

1

Rs.100.83

Euro

1

Rs.84.98

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

SDA


 

SCORE and RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

47

 

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 and 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.