MIRA INFORM REPORT

 

 

Report Date :

26.12.2013

 

IDENTIFICATION DETAILS

 

Name :

RAMBAL LIMITED

 

 

Registered Office :

Door No.20, Corporation Road, Seevaram, Perungudi, Off Old Mahabalipuram Road, Chennai – 600096, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

29.02.1996

 

 

Com. Reg. No.:

18-034671

 

 

Capital Investment / Paid-up Capital :

Rs.128.807 Millions

 

 

CIN No.:

[Company Identification No.]

U35999TN1996PLC034671

 

 

PAN No.:

[Permanent Account No.]

AABCR4471L

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The Subject is engaged in the business of precision turned engineering components.

 

 

No. of Employees :

Not Available

 

 

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 701000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having moderate track record.

 

The company has recorded losses from its operational activities during the financial year 2013.

 

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

 

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

 

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

 

Uptick in agriculture and construction spread some cheer as the economy grew a higher-than-expected 4.8 % in the three months through September. Manufacturing rose an annual rate per cent during the quarter and mining fell by 0.4 %, government data showed while farm output rose 46%.

 

India has emerged as the most attractive investment destination, thanks to a relaxation in foreign direct investment norms, says a report. India is followed by Brazil and China in the ranking part of EY’s Capital Confidence Barometer report based on a survey across 70 nations. The US, France and Japan have emerged as the top three investors likely to invest in India.

 

India has been ranked 83rd globally in terms of talent competitiveness of its human capital.  Switzerland, Singapore, Denmark, Sweden and Luxembourg are the top five in the list of 103 nations compiled by INSEAD business school.

 

Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average putting the country at low, 158th rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time taken for tax payments is relatively less in India which is rated ahead of China and Japan.

 

1 billion smartphone shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate of 18.4 % between 2013 and 2017, according to research from IDC.

 

20 % vacancy rate of office space in Mumbai and Delhi in the third quarter, the highest in Asia after Chengdu, in China. According to Cushman and Wakefield, six Indian cities are among the 10 office markets with the worst vacancies.

 

Foreign banks will not have to pay stamp duty and capital gains tax, if they convert their branch operations into a wholly owned subsidiary, according to the Reserve Bank of India.

 

The Reserve Bank of India is planning to launch CPI – indexed bonds aimed to protecting the savings of retail investors from the impact the price rise by December end.

 

Central Bureau of Investigation has booked State Bank of India, Deputy Managing Director Shyamal Acharya and others in a graft case related to distribution of a loan of over Rs 4000 mn. Gold and jewellery  worth Rs 6.7 mn have been recovered from the residence of Acharya.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating = BB+

Rating Explanation

Moderate degree at safety and moderate credit risk

Date

17.12.2013

 

Rating Agency Name

CRISIL

Rating

Short Term Rating = A4+

Rating Explanation

Minimal degree at safety and very high credit risk.

Date

17.12.2013

 

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.

 

 

LOCATIONS

 

Registered Office/ Seevaram Division :

Door No.20, Corporation Road, Seevaram, Perungudi, Off Old Mahabalipuram Road, Chennai – 600096, Tamilnadu, India

Tel. No.:

91-44-24965991 / 92 / 93

Fax No.:

91-44-42185990

E-Mail :

saccounts@rambalindia.net

smktg@rambalindia.net

Website :

www.ramballimited.com

 

 

Thiruporur Division :

115, Edaiyankuppam Village, Thandalam Panchayat, Thiruporur – 603110, Tamilnadu, India

Tel. No.:

91-44-27446028 / 5234

Fax No.:

91-44-27434572

 

mktg@rambalindia.net

 

 

DIRECTORS

 

As on 30.09.2013

 

Name :

Thiagarajan Jayaraman

Designation :

Director

Address :

Plot No.606, 29th Cross Street, Indira Nagar, Adyar, Chennai - 600020, Chennai District, Tamilnadu, India

Date of Birth/Age :

05.10.1951

Date of Appointment :

29.02.1996

DIN No.:

00163823

PAN No.:

AAFPJ8248J

 

 

Name :

Sridharan Anandanpillai Thirumalai

Designation :

Managing Director

Address :

No.23 VIII Main Road, Kasturibai Nagar, Adyar, Chennai – 600020, Chennai, Tamilnadu, India

Date of Birth/Age :

26.06.1950

Date of Appointment :

01.02.2011

DIN No.:

00366587

PAN No.:

AANPS2492M

 

 

Name :

Shreyas Rasiklal Mehta

Designation :

Director

Address :

No.9 Deerfield Lane, Scardale, New York 10583, United States of America

Date of Birth/Age :

15.08.1955

Date of Appointment :

30.12.2002

DIN No.:

00495532

 

 

Name :

Chandrasekar Rajagopal

Designation :

Director

Address :

A 3/3 Century Enclave, 54 Kalashethra Road, Thiruvanmiyur, Chennai - 600041, Chennai District, Tamilnadu, India

Date of Birth/Age :

10.04.1937

Date of Appointment :

31.12.2005

DIN No.:

00661793

PAN No.:

AABPC7251N

 

 

Name :

Rangaswamy Sundara Rajan

Designation :

Director

Address :

30/A Davis Road, Cooke Town, St. Thomas Town P.O. Bangalore 560084, Karnataka, India

Date of Birth/Age :

28.04.1948

Date of Appointment :

20.12.2006

DIN No.:

00498404

 

 

Name :

Mr. Sandip B Shah

Designation :

Director

Address :

501 Embassy Orchid, No.38, 8th Main, RMV Extension, Bangalore - 560080, Karnataka, India

Date of Birth/Age :

02.12.1958

Date of Appointment :

25.08.2010

DIN No.:

00837081

 

 

Name :

Venkatasubramanian Ramaswamy

Designation :

Whole-Time Director

Address :

Plot No.33, Bharani Colony, Saligramam, Chennai - 600093, Tamilnadu, India

Date of Birth/Age :

06.04.1949

Date of Appointment :

29.09.2012

DIN No.:

00514922

PAN No.:

AABPV1926D

 

 

KEY EXECUTIVES

 

Name :

N Venkataraghavan

Designation :

Secretary

Address :

Apartment No.N-905, Raj Lake View Apartments, 29th Main, BTM Second Stage, Bangalore - 560076, Karnataka, India

Date of Birth/Age :

02.05.1936

Date of Appointment :

26.11.2009

PAN No.:

AADPV1960B

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 30.09.2013

 

Names of Shareholders

 

No. of Shares

T. Jayaraman (SI)

 

838048

R. Lakshminarayanan

 

100

A.S. Venkataraman

 

100

K. Venkataraman

 

30100

T.A. Sridhar

 

1228418

Shanthi Rajmahadev

 

100

V.S. Udayakumar

 

100

Bhavani Thyagarajan (SI)

 

4553982

R. Venkatasubramanian

 

29752

Rambal Properties Private Limited, India

 

2200000

SMA Professional Services Private Limited, India

 

4000000

 

 

 

Total

 

12880700

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 30.09.2013

 

Category

Percentage

Bodies corporate

48.13

Directors or relatives of Directors

16.27

Other top fifty shareholders

35.60

 

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The Subject is engaged in the business of precision turned engineering components.

 

 

GENERAL INFORMATION

 

Customers :

·         Ashok Leyland

·         Brakes India

·         Delphi Automotive

·         Kalyani Brakes

·         Mahindra and Mahindra

·         Sundaram Fasteners

·         Suspa Pneumatics

·         Ucal Fuel Systems

·         MICO

 

 

No. of Employees :

Not Available

 

 

Bankers :

Oriental Bank of Commerce, Overseas Branch, Padma Complex, 467, Anna Salai, Nandanam, Chennai - 600035, Tamilnadu, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

LONG-TERM BORROWINGS

 

 

Rupee term loans from banks

2.112

8.441

Loans and advances from others

21.308

52.076

Loans taken for fixed assets

0.473

0.786

Other loans and advances

15.631

20.526

SHORT-TERM BORROWINGS

 

 

Working capital loans from banks

144.260

142.056

 

 

 

Total

183.784

223.885

 

 

 

Banking Relations :

---

 

 

Auditors 1 :

 

Name :

CNGSN and Associates

Chartered Accountant

Address :

"Agastyar Manor", New No.20 Old No.13, Raja Street, T. Nagar, Chennai – 600017, Tamilnadu, India

PAN No.:

AADFC5571B

 

 

Auditors 2 :

 

Name :

K.S. Aiyar and Company

Chartered Accountant

Address :

54/2 Paulwells Road, St. Thomas Mount, Chennai – 600016, Tamilnadu, India

PAN No.:

AAAFK6843P

 

 

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :

·         Shriram Engineering Products Private Limited

CIN No.: U29256TN1988PTC016346

 

·         Rambal Engineering Products Private Limited

CIN No.: U35999TN1989PTC017687

 

·         Rambal Properties Private Limited

CIN No.: U51102TN1955PTC002246

 

·         Rambal Engineering and Investments Private Limited

CIN No.: U74210TN1987PTC014558

 

·         Super Shock Absorbers Limited

CIN No.: U34300TN1983PLC042243

 

·         Shamani Management Services Private Limited

CIN No.: U74140TN2009PTC074089

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15250000

Equity Shares

Rs.10/- each

Rs.152.500 Millions

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

12880700

Equity Shares

Rs.10/- each

Rs.128.807 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

128.807

128.807

128.807

(b) Reserves & Surplus

46.599

65.739

65.271

(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)

175.406

194.546

194.078

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

96.742

94.297

123.671

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.010

0.010

0.084

(d) long-term provisions

5.138

5.621

3.588

Total Non-current Liabilities (3)

101.890

99.928

127.343

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

144.260

142.056

145.351

(b) Trade payables

105.930

108.668

102.622

(c) Other current liabilities

73.215

50.113

37.887

(d) Short-term provisions

2.700

4.629

3.196

Total Current Liabilities (4)

326.105

305.466

289.056

 

 

 

 

TOTAL

603.401

599.940

610.477

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

192.550

223.398

242.818

(ii) Intangible Assets

0.000

0.000

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)

0.394

0.770

0.374

(d)  Long-term Loan and Advances

74.103

31.898

25.849

(e) Other Non-current assets

0.000

3.389

3.389

Total Non-Current Assets

267.047

259.455

272.430

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

71.790

102.258

91.135

(c) Trade receivables

205.297

174.774

175.147

(d) Cash and cash equivalents

32.614

38.917

47.553

(e) Short-term loans and advances

26.653

24.536

24.212

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

336.354

340.485

338.047

 

 

 

 

TOTAL

603.401

599.940

610.477

 


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

462.018

442.139

530.118

 

 

Other Income

22.749

25.814

14.087

 

 

TOTAL                                     (A)

484.767

467.953

544.205

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

195.255

191.314

244.561

 

 

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

23.530

(3.641)

(16.368)

 

 

Employee benefit expense

86.102

81.941

93.066

 

 

Other expenses

136.337

124.533

149.441

 

 

Prior period items

2.192

2.192

0.000

 

 

TOTAL                                     (B)

443.416

396.339

470.700

 

 

 

 

 

Less

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

41.351

71.614

73.505

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

26.889

35.800

32.390

 

 

 

 

 

 

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

14.462

35.814

41.115

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

33.226

32.772

31.514

 

 

 

 

 

 

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

(18.764)

3.042

9.601

 

 

 

 

 

Less

TAX                                                                  (H)

0.376

2.574

1.117

 

 

 

 

 

 

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

(19.140)

0.468

8.484

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Direct Exports on FOB basis

331.495

281.750

284.239

 

 

Deemed Exports

8.669

14.495

14.866

 

TOTAL EARNINGS

340.164

296.245

299.105

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials, Components and Spares Parts

9.263

11.314

8.082

 

TOTAL IMPORTS

9.263

11.314

8.082

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(1.49)

0.04

NA

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

3.95

0.10

1.56

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(4.06)

0.69

1.81

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(3.11)

0.51

1.57

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.11)

0.02

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.37

1.21

1.39

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.03

1.11

1.17

 

 

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

Yes

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

Yes

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

Yes

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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

LITIGATIONS DETAILS

CHENNAI COURT

 

CASE STATUS INFORMATION SYSTEM

Case Status:

Pending

Status Of:

TAX CASES

Case No.:

284

Year :

2007

Petitioner :

COMMISSIONER OF INCOME TAX

Respondent :

RAMBAL PVT LTD

Pet's Advocate :

M/S.PUSHYA SITARAMAN

Res's Advocate :

II BATTA WITH PETITION DU

Category :

NO CATEGORY MENTIONED

 

Last Listed on: No Date Mentioned

Case Updated on :

Dec 14 2012

 

 

UNSECURED LOAN

(Rs. In Millions)

Particular

As on

31.03.2013

As on

31.03.2012

LONG-TERM BORROWINGS

 

 

Loans repayable on demand from others

57.218

12.468

 

 

 

Total

57.218

12.468

 

 

OPERATION

 

The Company registered a turnover of Rs.484.800 Millions as compared to Rs.468.000 Millions achieved during the previous year. The profit before tax has reduced to a loss of Rs.18.800 Millions corresponding to profit of Rs.3.042 Millions achieved during the previous year. This is mainly due to reduction in business in Seevaram Plant due to difficult market conditions and prolonged labour issues. The highlight of the year is performance of Thiruporur Plant showing a turnover of Rs.398.800 Millions as compared to Rs.322.200 Millions achieved during the previous year and profit before tax of Rs.36.700 Millions. Prospects for the current year continues to be good.

 

The Company’s manufacturing operations were being carried out from two places viz Thiruporur (near Chennai) and Seevaram, Chennai 600096. The Company is the absolute owner of the factory premises situated at Thiruporur. Whereas the factory premises situated at Seevaram was taken on lease rent. For over a long time the owner of the Seevaram premises have been requesting the Company to vacate and handover vacant possession. The Board of Directors had taken a decision to vacate the existing Seevaram premises. Accordingly the Company has identified a factory premises at Ambattur Industrial Estate with requisite power supply and has also entered into necessary agreement. Some of the operations have been shifted to the new premises and production has commenced. Due to certain practical difficulties partial operations are at present being carried out from existing Seevaram premises and shifting of entire operations to Ambattur premises is expected to be completed shortly.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

80017000

29/03/2012 *

248,900,000.00

ORIENTAL BANK OF COMMERCE

OVERSEAS BRANCH, PADMA COMPLEX, 467, ANNA SALAI,  NANDANAM, CHENNAI, TAMILNADU - 600035, INDIA

B37838760

2

80032302

14/10/2004

73,200,000.00

S HRIRAM TRANSPORT FINANCE COMPNY LIMITED

123 ANGAPPA NAICKEN STREET, CHENNAI, TAMILNADU - 
600001, INDIA

-

3

90293257

30/03/2005 *

36,400,000.00

SHRIRAM INVESTMENTS LIMITED

123; ANGAPPA NAICKEN STREET, CHENNAI, TAMILNADU - 600001, INDIA

-

4

90293927

20/07/2001

90,116,000.00

THE ASSESTANT COMMISSONER(C.T)

THERUVANMIYUR ASSESSMENT CIRCLE, CHENNAI, TAMILNADU - 600041, INDIA

-

 

* Date of charge modification

 

 

FIXED ASSETS

 

Tangible Assets

·         Land

·         Buildings

·         Plant and Equipment

·         Furniture and Fixtures

·         Vehicles

·          Office Equipment

 

 


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.61.87

UK Pound

1

Rs.101.10

Euro

1

Rs.84.65

 

 

INFORMATION DETAILS

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

4

--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

YES

--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.