|
Report Date : |
27.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
MEGHALAYA CEMENTS LIMITED |
|
|
|
|
Registered
Office : |
Thangskail Umshnong, Khliehriat, Jaintia Hills, Khliehriat – 793200,
Meghalaya |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
12.06.2003 |
|
|
|
|
Com. Reg. No.: |
13-007125 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.380.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U26942ML2003PLC007125 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCM8079P |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of Clinker, Ordinary Portland Cement (OPC) and Portland Pozzolona
Cement (PPC). |
|
|
|
|
No. of Employees
: |
Not Available |
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 12750000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a satisfactory track record. Networth of the company appears to be good. The company is performing well. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
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 |
CARE |
|
Rating |
Long Term Bank Facilities: BBB+ |
|
Rating Explanation |
Moderate degree of safety, it carry moderate
credit risk. |
|
Date |
02.04.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities: A3+ |
|
Rating Explanation |
Moderate degree of safety, it carry higher credit
risk. |
|
Date |
02.04.2013 |
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 : |
Thangskail Lumshnong, Khliehriat, Jaintia Hills, Khliehriat – 793200, Meghalaya,
India |
|
Tel. No.: |
91-3655-278324/ 363/ 364 |
|
Fax No.: |
91-3655-278327 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Sales and Marketing Office : |
4th Floor, Mega Plaza, Christian Basti, Guwahati – 781005,
Assam, India |
|
Tel. No.: |
91-361-2345421/22/23 |
|
Fax No.: |
91-361-2345419 |
|
E-Mail : |
|
|
|
|
|
Kolkata Office : |
BE-77, Salt Lake City, Sector – 1, Kolkata – 700064, West Bengal,
India |
|
Tel No.: |
91-33-23340666/ 0004 |
|
Fax No.: |
91-33-23340505 |
|
Email : |
|
|
|
|
|
Topcem India : |
Village: Gauripur, P. O. College Nagar, Mouza: Silasundri Ghopa,
Kamrup – 781031, Amingaon, India |
|
Tel No.: |
91-361-2130087 |
DIRECTORS
(AS ON 30.09.2013)
|
Name : |
Mr. Mahendra Kumar Agarwal |
|
Designation : |
Managing Director |
|
Address : |
BE – 77, Salt Lake City, Sector – I, Kolkata – 700064, West Bengal,
India |
|
Date of Birth/Age : |
17.11.1966 |
|
Date of Appointment : |
12.06.2003 |
|
DIN No.: |
00044343 |
|
Pan No.: |
AMBPA8813G |
|
|
|
|
Name : |
Mr. Bijay Kumar Garodia |
|
Designation : |
Director |
|
Address : |
CF-366, Salt Lake, Sector – I, Kolkata – 700064, West Bengal, India |
|
Date of Birth/Age : |
26.08.1957 |
|
Date of Appointment : |
12.06.2003 |
|
DIN No.: |
00044379 |
|
Pan No.: |
ACCPG4986F |
|
|
|
|
Name : |
Mr. Ram Awatar Agarwala |
|
Designation : |
Managing Director |
|
Address : |
G. C. College Road, Bilchar, Cachar – 788004, Assam, India |
|
Date of Birth/Age : |
20.06.1958 |
|
Date of Appointment : |
01.11.2003 |
|
DIN No.: |
00269240 |
|
Pan No.: |
ACAPA4162B |
|
|
|
|
Name : |
Phon Syih |
|
Designation : |
Director |
|
Address : |
Vill: Thangskai, P. O.: Lumshnong, Jaintia Hilla – 793200, Meghalaya,
India |
|
Date of Birth/Age : |
20.06.1958 |
|
Date of Appointment : |
12.06.2003 |
|
DIN No.: |
00421643 |
|
|
|
|
Name : |
Mr. Kailash Chandra Lohia |
|
Designation : |
Director |
|
Address : |
Fancy Bazar, Lohia House, Guwahati – 781001, Assam, India |
|
Date of Birth/Age : |
15.06.1954 |
|
Date of Appointment : |
01.11.2003 |
|
DIN No.: |
00512267 |
|
Pan No.: |
ABEPL3008L |
KEY EXECUTIVES
|
Name : |
Mr. Bhaskar Rakshit |
|
Designation : |
Company Secretary |
|
Address : |
2 No. Congress Pally House No.A-22, Bansdroni, Kolkata – 700070, West
Bengal, India |
|
Date of Birth/Age : |
10.02.1982 |
|
Date of Appointment : |
01.09.2011 |
|
PAN No.: |
AHXPR5040H |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2013)
Shareholding Details file Attached
(AS ON 30.09.2013)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Bodies corporate |
|
5.03 |
|
Directors or relatives of directors |
|
67.07 |
|
Other top fifty shareholders |
|
27.90 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Clinker, Ordinary Portland Cement (OPC) and Portland Pozzolona
Cement (PPC). |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
· ICICI Bank Limited Landmark Race Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India
· Standard Chartered Bank |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Singhi and Company Chartered Accountants |
|
Address : |
2nd
Floor, Shanmati Plaza, Opposite IDBI Building, G.S. Road, Guwahati - 781 005, Assam, India |
|
PAN No.: |
s |
|
|
|
|
Associates : |
· Brijraj Power and Metallics Limited · Subham Planners Limited · Sohum Shoppe Limited · Meghalaya Steels Limited · Adhunik Cement Limited ·
Bajrang Steel (Sales) Corporation ·
Meghalaya Ispat Limited ·
K.D. Cokes ·
KCL Developers Private Limited. ·
Hanuman Towers Private Limited ·
Lohia Constructions Private Limited · Steel Trade and Agencies · Prithvi Finvest Company Private Limited ·
K.D. Cement |
|
|
·
|
|
Subsidiaries : |
· Jaintia Hills Power Limited · Jaintia Hills Mines and Minerals Private Limited · Oasys Power Limited |
CAPITAL STRUCTURE
(AS ON 30.09.2013)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
38000000 |
Equity Shares |
Rs.10/- each |
Rs.380.000
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 |
380.000 |
380.000 |
380.000 |
|
(b) Reserves & Surplus |
2807.382 |
2770.597 |
2744.935 |
|
(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) |
3187.382 |
3150.597 |
3124.935 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
470.458 |
757.260 |
1197.091 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
339.214 |
154.009 |
149.522 |
|
(d) Long-term provisions |
10.525 |
7.218 |
5.052 |
|
Total Non-current Liabilities (3) |
820.197 |
918.487 |
1351.665 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
710.035 |
685.909 |
425.854 |
|
(b) Trade payables |
464.711 |
165.169 |
326.378 |
|
(c) Other current
liabilities |
530.700 |
837.563 |
693.930 |
|
(d) Short-term provisions |
8.951 |
100.601 |
94.068 |
|
Total Current Liabilities (4) |
1714.397 |
1789.242 |
1540.230 |
|
|
|
|
|
|
TOTAL |
5721.976 |
5858.326 |
6016.830 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2671.616 |
2352.012 |
1028.363 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
102.999 |
711.385 |
1789.987 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
560.801 |
600.014 |
407.285 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
3.453 |
|
(d) Long-term Loan and Advances |
510.568 |
526.841 |
501.458 |
|
(e) Other Non-current assets |
169.511 |
163.941 |
185.890 |
|
Total Non-Current Assets |
4015.495 |
4354.193 |
3916.436 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
644.441 |
505.867 |
728.661 |
|
(c) Trade receivables |
383.066 |
170.823 |
148.366 |
|
(d) Cash and cash
equivalents |
16.597 |
18.204 |
27.317 |
|
(e) Short-term loans
and advances |
246.293 |
265.260 |
359.354 |
|
(f) Other current
assets |
416.084 |
543.979 |
836.696 |
|
Total Current Assets |
1706.481 |
1504.133 |
2100.394 |
|
|
|
|
|
|
TOTAL |
5721.976 |
5858.326 |
6016.830 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
3320.178 |
2738.450 |
2864.932 |
|
|
|
Other Income |
11.922 |
16.347 |
12.453 |
|
|
|
TOTAL (A) |
3332.100 |
2754.797 |
2877.385 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
455.926 |
331.432 |
521.160 |
|
|
|
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
73.523 |
140.317 |
(182.384) |
|
|
|
Employee benefit expense |
104.412 |
74.227 |
128.351 |
|
|
|
Other expenses |
2024.078 |
1763.099 |
1733.802 |
|
|
|
Exceptional items |
2.906 |
0.888 |
0.264 |
|
|
|
TOTAL (B) |
2660.845 |
2309.963 |
2201.193 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
671.255 |
444.834 |
676.192 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
200.287 |
144.539 |
59.761 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
470.968 |
300.295 |
616.431 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
434.183 |
270.707 |
151.531 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
36.785 |
29.588 |
464.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
3.926 |
4.032 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
36.785 |
25.662 |
460.868 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.97 |
NA |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
1.10
|
0.93 |
16.02 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.11
|
1.08 |
16.23 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.73
|
0.65 |
12.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.01 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.37
|
0.46 |
0.52 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.99
|
0.84 |
1.36 |
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 |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
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 |
CEMENT INDUSTRY
OVERVIEW
India being the
second largest cement producer in the world, the sector holds great
significance in the Indian economy. Cement is a success story of deregulation.
From the time India became independent till 1989 when cement was under price
and distribution control by the government, the capacity created in the country
was hardly anything. Capacity in 1988 was around 45-50 million tons which was
the product of more than 40 years of control. Over the last decades of
de-control, the capacity has gone to around more than 300 million tons.
Capacity creation has been in bunches and ever since de-control in the 1990,
capacity creation has always been generally ahead of demand. However, whatever
additional capacity was created was reasonably quickly absorbed and it is a
myth and incorrect to think that regulation would spur growth. If this capacity
had not been added, India’s growth would have been severely constrained as this
large volume of deficit could not have been possible to source from outside
India.
The Cement
industry in India is at a critical juncture today. During the five year period
of 2007-2012, the industry added around 150 million tons of capacity which is
around the half of the total capacity. This huge capacity addition in the last
few years has created a capacity demand mismatch in the overall cement industry
due to general economic slowdown and lower growth in the demand of cement. The
real estate-industry which demands as a major user of cement has also showed a
bit of downward movement during the year. The rising costs of raw materials
like diesel and coal have also been playing a heavy strain on the cement
manufacturers. Nonetheless, expecting an increase in spending on infrastructure
and other initiatives / benefits by Government in near future, the outlook of
the cement industry is positive.
REVIEW OF OPERATIONS
During the year
2012-13, the company has achieved a production of 3.80 lacs MT of cement and
6.39 lacks MT of Clinker and sold 3.80 lacs MT of cement and 3.45 lacs MT of
Clinker respectively as compared to production of 4.53 lacs MT of cement and
4.53 lacs MT of clinker and disposal of 4.50 lacs MT of cement and 1.62 lacs MT
of clinker respectively in the previous year. The net of excise turnover of the
Company during the year is Rs.3308.200 Millions as against the previous year
net of excise turnover of Rs.2689.600 Millions. The company has registered a
Net Profit after Tax amounting to Rs.36.800 Millions during the financial year
as compared to the previous year net Profit after Tax amounting to Rs.25.700
Millions.
The Directors are
delighted to announce that despite battling overcapacity, the slowdown in the
real estate sector, the rising cost of input materials and other challenging
issues on the financial performance front, the net profit after tax earned by
the Company is quite better and higher by 43.34 % as compared to previous year.
They expect that this growth momentum shall be maintained by the company in the
coming years also. Government initiatives in the infrastructure sector and the
housing sector are likely to be the main growth drivers for the Cement Industry
in the forth coming future.
FUTURE PROSPECTS
AND OUTLOOK
According to
various research and reports and in view of the upcoming massive infrastructure
developments, the cement industry is expected to grow by 8% during the year
2013-14. The demand increase is expected to be sustained due to Government
spending on infrastructure projects, rural housing development and the general
increase in the economic activities. The Government’s initiatives towards
controlling fiscal deficit are expected to help the economy revive and grow by
6.4% in 2013-14. The Working Committee report on cement industry suggests that
the Government of India plans to increase its investment in infrastructure to
US $ 1 trillion in the Twelfth Five Year Plan (2012-17) as compared to US $ 514
billion expected to be spent on infrastructure development under the Eleventh
Five Year Plan (2007-12). The long term cement demand in India is also expected
to remain strong and grow at a CAGR of 7-8% over 2012-17, primarily driven by
demand from infrastructure projects in urban areas and independent housing
projects in both urban and rural region. To provide impetus to the construction
industry, the Government has raised the limit for additional exemption on
housing loan to borrowers and further increased rural housing fund by 50%. RBI
has also intervened to cut cash reserve ratio (CRR) to provide additional funds
to banks for lending purpose. The capacity-demand mismatch is therefore
expected to come down over a period of next few years, improving the capacity
utilization of the industry.
The company
remains one of the lowest debt companies in Cement Industry in the North East,
and that coupled with its strong brand, integrated capacities and professional
management, will remain resilient to the impeding competition and enable it to
perform much better than the industry benchmarks. They expect that in the North
East region of India demand for their products will also remain strong. In
operating their business at full capacity and continually seeking opportunities
to increase the volumes of product available to their customers, it is the
Board’s duty to ensure that they are creating real and tangible value for their
shareholders.
FIXED ASSETS:
·
Land
·
Building
·
Factory Building
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Motor Vehicles
·
Office Equipment
·
Computers
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.61.98 |
|
|
1 |
Rs.101.49 |
|
Euro |
1 |
Rs.84.79 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
6 |
|
--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 & 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 |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.