MIRA INFORM REPORT

 

 

Report Date :

21.12.2013

 

IDENTIFICATION DETAILS

 

Name :

SOVEREIGN TECH ENGINEERING SERVICES PRIVATE LIMITED

 

 

Registered Office :

14, Mahinder Chambers, Waman Tukaram Patil Marg, Chembur, Mumbai -400071, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

08.04.1986

 

 

Com. Reg. No.:

11-039496

 

 

Capital Investment / Paid-up Capital :

Rs. 9.606 Millions

 

 

CIN No.:

[Company Identification No.]

U24230MH1986PTC039496

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS30231F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Coolant Filtration Systems for Automobile Industry.

 

 

No. of Employees :

50 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (31)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 290000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

There appears drastic dip in profit and sales of the company in 2013.

 

However, trade relations are fair. Business is active. Payment terms are slow but correct.

 

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

 

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

 

Name :

Ms. Sindhu Shashi

Designation :

Accounts Executive

Contact No.:

91-9930316410

Date :

20.12.2013

 

 

LOCATIONS

 

Registered Office :

14, Mahinder Chambers, Waman Tukaram Patil Marg, Chembur, Mumbai -400071, Maharashtra, India

Tel. No.:

91-22-67973259/ 260

Mobile No.:

91-9930316410 (Ms. Sindhu)

Fax No.:

91-22-67987499

E-Mail :

ashishshah@sovereigntech.in

sindhu.sasi@sovereigntech.in

marketing@sovereigntechindia.com

Website :

www.sovereigntech.in

Area :

2000 Sq. ft

Location :

Owned

 

 

Factory 1 :

A-515, TTC Industrial Area, MIDC, Mahape, Navi Mumbai, Maharashtra, India

Tel. No.:

91-22-56147556/ 57

Area :

9000 sq ft

Location :

Owned

 

 

DIRECTORS

 

AS ON 30.09.2013

 

Name :

Mr. Sarvanand Madhukar Bhujle

Designation :

Managing director

Address :

3rd Floor, 14, Avanti Co-Operative Housing Society, Deonar Baug, Off S. T. Road, Near Datta Guru Society, Deonar, Mumbai - 400088, Maharashtra, India

Date of Birth/Age :

07.03.1955

Date of Appointment :

08.04.1986

DIN No.:

00302577

 

 

Name :

Mr. Aditya Sarvanand Bhujle

Designation :

Director

Address :

14, Avanti Co-Operative Housing Society Limited, Deonar Baug, Deonar, Mumbai – 400088, Maharashtra, India

Date of Birth/Age :

16.03.1988

Date of Appointment :

17.03.2006

DIN No.:

00302636

 

 

Name :

Mr. Vimal Madhukar Bhujle

Designation :

Director

Address :

Usha Co-Operative Housing Society Limited, Opposite Portuguese Church, College Lane, Dadar (West), Mumbai - 400028, Maharashtra, India

Date of Birth/Age :

13.12.1923

Date of Appointment :

08.04.1986

DIN No.:

00575115

 

 

Name :

Mr. Anish Sarvanand Bhujle

Designation :

Director

Address :

14, Avanti Co-Operative Housing Society Limited, Deonar Baug, Mumbai – 400088, Maharashtra India 

Date of Birth/Age :

13.10.1994

Date of Appointment :

30.09.2013

DIN No.:

06450263

 

 

KEY EXECUTIVES

 

Name :

Ms. Sindhu Shashi

Designation :

Accounts Executive

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2013

 

Names of Equity Shareholders

 

No. of Shares

 

Sarvanand Madhukar Bhujle

 

768290

Vimal Madhukar Bhujle jointly with Aditya Sarvanand Bhujhe and Sarvanand Madhukar Bhujle

 

95850

Vimal Madhukar Bhujle jointly with Anish Sarvanand Bhujle and Sarvanand Madhukar Bhujle

 

95850

Aditya Sarvanand Bhujhe

 

5

Anish Sarvanand Bhujle

 

5

 

 

 

Total

 

 

960000

 

 

Names of Preference Shareholders

 

No. of Shares

 

Vanita Sharma

 

1

Sarvanand Madhukar Bhujle

 

4

Sindhu Sasi

 

1

 

 

 

Total

 

 

6

 

 

AS ON 30.09.2013

 

Equity Share Breakup

Percentage of Holding

Category

 

Directors or relatives of directors

100.00

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Coolant Filtration Systems for Automobile Industry.

 

 

Exports :

 

Products :

Coolant Filtration Systems

Countries :

·         Germany

Singapore

 

 

Imports :

 

Products :

Raw Material

Countries :

·         Germany

USA

 

 

Terms :

 

Selling :

Document against payment

 

 

Purchasing :

Document against payment

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Filter Media

Sq. Mtr.

NA

NA

268710

KBF

No.

NA

NA

198

Chip Blaster and Sovereign Kambo

No.

NA

NA

17

Chip Conveyors

No.

NA

NA

69

Lubricants

Kg

NA

NA

13088

 

Note:

 

Installed Capacity: The installed capacities are not precisely ascertainable, given the nature of operation, changes in product mix and utilisation of manufacturing facilities and hence, have not been disclosed.

 

 

GENERAL INFORMATION

 

Suppliers :

Raja Mane Pump, Bangalore

 

 

Customers :

Wholesalers, Retailers and Manufacturer

 

·         Tata Motors

Bajaj Auto

 

 

No. of Employees :

50 (Approximately)

 

 

Bankers :

Bank of India, 61-A, Gokhale Road (North), Dadar (West), Mumbai - 400028, Maharashtra, India

 

 

Facilities :

 

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Term Loan – Vashi Property

[Secured against equitable mortgage of Vashi Property, A-515 and A-515/1 and personally guaranteed by directors of the company Mrs. Vimal M Bhujle and Mr. Sarvanand M Bhujle as Collateral Security]  

0.000

8.655

Term Loan – Mahape New Factory

[Secured by Equitable Mortgage of Vashi Property, A-515 and A-515/1 and personally guaranteed by directors of the company Mrs. Vimal M Bhujle and Mr. Sarvanand M Bhujle. Assignment of Key man insurance policy of Mr. Sarvanand M Bhujle as Collateral Security]

23.145

10.743

Vehicle Loan from Bank of India (Maruti Alto)

[Secured by hypothecation of Vehicle]

0.000

0.061

Term Loan from Others

Term Loan from Chola Mandalam

[Secured by mortgage of personal property of managing director at Chembur]

0.400

1.440

SHORT TERM BORROWINGS

 

 

Cash Credit account with Bank of India

[Secured by hypothecation of stocks and receivables and personally guarantees by directors of the company, Mrsa. Vimal Bhujle and Mr. Sarvanand Bhujle. Also secured by hypothecation mortgage of Vashi Property, A-515 and A-515/1 and personally guaranteed by directors of the company Mrs. Vimal M Bhujle and Mr. Sarvanand M Bhujle. Assignment of Key man insurance policy of Mr. Sarvanand M Bhujle as Collateral Security]

33.706

35.689

 

 

 

Total

 

57.251

56.588

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Gokhale and Sathe

Chartered Accountants

Address :

302/303, Udyog Mandir No. 17-C Bhagoji Keer Marg, Mahim, Mumbai – 400016, Maharashtra, India

Tel. No.:

91-22-43484242

Fax No.:

91-22-43484241/ 51

E-Mail :

office@gokhalesathe.in

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

AAAFG4990K

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

995,000

Equity Shares

Rs. 10/- each

Rs. 9.950 Millions

50

Preference Shares

Rs. 1000/- each

Rs. 0.050 Million

 

Total

 

Rs. 10.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

960,000

Equity Shares

Rs. 10/- each

Rs. 9.600 Millions

6

Preference Shares

Rs. 1000/- each

Rs. 0.006 Million

 

Total

 

Rs. 9.606 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

9.606

9.606

9.606

(b) Reserves & Surplus

64.108

61.120

51.012

(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)

73.714

70.726

60.618

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

41.652

34.951

33.271

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.857

1.427

0.000

(d) long-term provisions

1.271

0.812

0.428

Total Non-current Liabilities (3)

43.780

37.190

33.699

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

33.706

35.689

24.089

(b) Trade payables

20.677

22.050

25.942

(c) Other current liabilities

23.274

21.186

21.666

(d) Short-term provisions

0.275

4.155

8.914

Total Current Liabilities (4)

77.932

83.080

80.611

 

 

 

 

TOTAL

195.426

190.996

174.928

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

98.413

78.188

67.894

(ii) Intangible Assets

3.025

3.991

5.108

(iii) Capital work-in-progress

17.153

21.343

25.663

(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)

1.606

2.668

1.976

(d)  Long-term Loan and Advances

2.988

2.017

1.173

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

123.185

108.207

101.814

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

36.920

29.192

22.049

(c) Trade receivables

31.123

43.625

42.171

(d) Cash and cash equivalents

0.647

6.580

4.510

(e) Short-term loans and advances

3.551

3.392

4.384

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

72.241

82.789

73.114

 

 

 

 

TOTAL

195.426

190.996

174.928

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

124.950

153.320

126.365

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                     (A)

NA

NA

NA

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

NA

NA

NA

 

 

 

 

 

 

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

21.950

33.890

38.170

 

 

 

 

 

 

FINANCIAL EXPENSES                         (D)

9.640

9.470

8.410

 

 

 

 

 

 

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

12.310

24.420

29.760

 

 

 

 

 

 

DEPRECIATION/ AMORTISATION                     (F)

7.090

6.750

6.180

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

5.220

17.680

23.580

 

 

 

 

 

 

TAX                                                                  (H)

2.350

7.570

12.860

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2.870

10.110

10.720

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

39.820

29.710

20.500

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

0.000

1.500

 

BALANCE CARRIED TO THE B/S

42.690

39.820

29.710

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods on FOB basis

4.233

4.262

4.507

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

29.615

30.539

21.371

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.23

11.69

12.91

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Return on Total Assets

(PBT/Total Assets}

(%)

2.95

10.59

16.01

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.07

0.25

0.39

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.02

1.00

0.95

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.93

1.00

0.91

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

CURRENT MATURITIES OF LONG TERM DEBT

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

Current Maturity of Long Term Debt

 

 

 

Term Loan Factory II

0.000

0.000

0.459

Term Loan Vashi Premise

7.307

8.550

7.700

Term Loan Factory – Mahape

3.550

1.950

1.800

Term Loan from Chola Mandalam

1.045

0.907

0.783

Vehicles Loan from Bank of India (Alto)

0.053

0.066

0.059

Vehicles Loan from HDFC (Swift)

0.000

0.136

0.137

Vehicles Loan from HDFC (Swift)

0.000

0.000

0.137

 

 

 

 

Total

 

11.955

11.609

11.075

 

 

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

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

INDEX OF CHARGES

 

 

 

 

 

 

UNSECURED LOANS

 

UNSECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Vimal M Bhujle

5.000

4.250

Sarvanand M Bhujle

8.697

7.547

Aditya S Bhujhe

2.255

2.255

Anish S. Bhujhe

2.155

0.000

 

 

 

Total

 

18.107

14.052

 

 

CHANGE OF ADDRESS:

 

 

 

 

BACKGROUND

 

Subject is a Company incorporated on 17" January, 2002 with a prime objective of bringing modem yet proven technology, concepts, products and services to Indian Metal Cutting Industry at large.

 

Sovereign Tech works closely and exclusively with various overseas Companies as their collaborator and exclusive business partner to provide a basket of products including High Performance cooling lubricants, Filter system, Filter media, Low and Medium Pressure pumps, High pressure variable volume coolant delivery system and Nozzles under the concept of "Fluid Advantech".

 

 

PERFORMANCE OF THE COMPANY

 

The overall political situation did result in adverse balance of exchange position for their country affecting investments sentiment, steep devaluation of their currency and strong negative economic climate. The Comments of the experts, if by any means is an economic indicator to go with than the situation during Global melt down (2008-09) seem far more trivial as compared to the prevailing economic situation in their country.

 

This Negative market sentiment during this year has had a serious impact on the Company's sales and growth plans resulting in dip in sales as evident. During the said year, the company registered a Net sales of MINR 124.95 showing a dip of about 18% compared to 2orr''12 at MINR 153.32.

 

The fall in sale was witnessed in all Products including Consumables. Thus indicating that not only the investment plans at the Customer ends were on hold but, even their present lines were running at very low capacity considering the fall in the market demand.

 

It is pertinent to note that despite this challenging economic situation, the company has maintained its track record of registering Profit even during difficult times. This is perceived quite positively by all their stakeholders and the Credit Rating Agency and thus calls for sincere word of appreciation to Team Sovereign Tech.

 

 

EXPANSION AND FUTURE PROJECTS

 

As a progressive measure, despite challenging times, the Company undertook the construction of the new factory premises at A-515/L, Mahape, Navi Mumbai during this year. The "Building completion certificate" was received in time from MIDC and the full-fledged Production activity has since commenced. Incidentally, the new factory premise is built as per the 'Lead guidelines' as a 'Green Manufacturing facility' perhaps first of its kind in city of Mumbai.

 

They new factory is helping us in efficiently undertaking the fabrication and related manufacturing activity especially for 'Jorgensen conveyors' giving they the advantage of quality and timely delivery. Their prime objective of having a dedicated conveyor manufacturing facility as envisaged is well met with this new factory premises in place. With the infrastructure that it provides, they are also able to undertake and execute the medium and large size Central Systems which until date was outsourced. Again on account of this in-house manufacturing of Jorgensen conveyors' and Central systems, they are sure to accomplish economy and competitive edge.

 

In the last quarter of this financial year, Mr. Aditya s Bhujle joined the company as a full time Director and they welcome him to Team Sovereign Tech.

 

With his illustrious Academic background from reputed US institutions such as California Institute of Technology (Caltech) during undergraduate studies and subsequently at Massachusetts Institute of Technology (MLR) for Masters, Aditya brings in considerable knowledge and exposure into Team Sovereign Tech.

 

 

CONTINGENT LIABILITIES [AS ON 31.03.2013]:

 

i.            Estimated amount of Contracts remaining to be executed on Capital Account and not provided for is Rs. 0.320 Million (Previous year Rs. 6.799 Millions).

ii.            The Company has contingent liability of Rs. 0.589 Million (Previous Year Rs. 0.394 Million) in respect of performance / advance bank guarantees issued by Bank of India, Dadar (West) Branch, for and on behalf of the Company.

iii.            The Company is member of the Small Scale Entrepreneurs Association T.T.C which has challenged the right of the Navi Mumbai Municipal Corporation (NMMC) to collect property taxes and cess from industrial units located in MIDC Industrial Area on the ground of administrative jurisdiction. The Mumbai High Court has given the judgement in favour of Navi Mumbai Municipal Corporation on 8h July 2010. Small Scale Entrepreneurs Association had filed a Special Writ Petition in Supreme Court in August 2010. Considering the above facts, the Company has provided &paid Property tax and Cess starting from 1st April 2010. The Company has also provided for Property tax of Rs. 1.909 Millions and Cess of Rs. 2.573 Millions for the period prior to April 2010.

 

 

TRADE REFERENCES

 

·         Raja Mane Pump, Bangalore

Tata Motors

Bajaj Auto


FIXED ASSETS:

 

·         Leasehold Land

Factory Building

Guest House

Machinery

Electrical Fitting

Tools and Equipments

Office Equipments

Air Conditioner

Furniture and Fixtures

Computers

Motor Car

Bicycle

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. 62.24

UK Pound

1

Rs. 101.81

Euro

1

Rs. 84.88

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Report Prepared by :

BVA

 


 

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

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

31

 

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.