MIRA INFORM REPORT

 

 

Report Date :

03.01.2013

 

IDENTIFICATION DETAILS

 

Name :

TAMILNADU JAI BHARATH MILL LIMITED

 

 

Registered Office :

212, Ramasamy Nagar, Aruppukottai - 626 159, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

02.11.1989

 

 

Com. Reg. No.:

18-018267

 

 

Capital Investment / Paid-up Capital :

Rs.138.000 millions

 

 

CIN No.:

[Company Identification No.]

L17111TN1989PLC018267

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MRIT00622G

 

 

Legal Form :

Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Cotton Yarn.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

 

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Sick Company

 

 

Payment Behaviour :

Slow and delayed

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Ramalinga Group.

 

With reference of BIFR, the company has been declared as “Sick Company”. Its networth has been eroded. The external borrowing of the company is huge.

 

The company has reported delay in paying its debt due to weak liquidity.

 

The company can be considered for business dealings on a safe and fully secured trade terms and condition.

 

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

(31.03.2012)

Current Rating

(30.06.2012)

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 is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

D (Long Term Rating)

Rating Explanation

These ratings are in default or are expected to be in default soon.

Date

October, 2012

 

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 :

212, Ramasamy Nagar, Aruppukottai - 626 159, Tamilnadu, India

Tel. No.:

91-4566-240282/ 241088

Fax No.:

Not Available 

E-Mail :

marketing@tnjb.net.in

marketing1@tnjb.net.in

Website :

http://www.tnjb.net.in

 

 

Factory :

Malayankulam Village, Sankarankovil Thirunelveli District - 627 756, Tamilnadu, India

Tel. No.:

91-4636-222091

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. Srinivas A. Naidu

Designation :

Chairman

 

 

Name :

Mr. D. Senthilkumar

Designation :

Managing Director

 

 

Name :

Mr. T.R. Dhinakaran

Designation :

Director

 

 

Name :

Mr. T.R. Varadarajan

Designation :

Director

Qualification :

B.A.

Brief resume area of expertise :

He has vast experience in the textile industry for a considerable period of time.

 

 

Name :

Mr. J. Sree Rajasegaran

Designation :

Director

 

 

Name :

Mrs. D. Kothai

Designation :

Director

Qualification :

B. Com

Brief resume area of expertise :

She has good exposure in Managing Spinning Mills.

 

 

Name :

Mr. G. Bhaskaran

Designation :

Director (resigned w.e.f. 11.10.2011)

 

 

Name :

Mr. Manojkumar Kedia

Designation :

Director

Qualification :

B. Com

Brief resume area of expertise :

He has rich experience in Cotton Yarn and Textile Business for nearly a decade.

 

 

Name :

Mr. T. Balakumar

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. V.N. Kittappa

Designation :

Company Secretary and Chief Finance Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2012

 

Category of Shareholders

No. of Shares

 

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

3187670

23.10

Bodies Corporate

2563200

18.57

Sub Total

5750870

41.67

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

5750870

41.67

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

2800

0.02

Financial Institutions / Banks

500

0.00

Sub Total

3300

0.02

(2) Non-Institutions

 

 

Bodies Corporate

366402

2.66

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

6308028

45.71

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

304000

2.20

Any Others (Specify)

1067400

7.73

Directors & their Relatives & Friends

428500

3.11

Non Resident Indians

608100

4.41

Hindu Undivided Families

28000

0.20

Clearing Members

2800

0.02

Sub Total

8045830

58.30

Total Public shareholding (B)

8049130

58.33

Total (A)+(B)

13800000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

Total (A)+(B)+(C)

13800000

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Cotton Yarn.

 

 

Products :

Item Code No. (ITC Code)

5205

Product Description

Cotton Yarn

Item Code No. (ITC Code)

5207

Product Description

Cotton Grey Cloth

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

 

31.03.2011

Licensed Capacity (Spindles) (Delicenced)

50208

Installed Capacity (Spindles)

50208

Production

 

Cotton Yarn – Mill Production

3322152 Kgs.

Cotton Waste

1721846 Kgs.

Fabrics

--

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

v      State Bank of India, Commercial Branch 6A, West Veli Street, Madurai – 625 001, Tamilnadu, India

v      IDBI Bank Limited

v      Indian Bank

v      Tamilnad Mercantile Bank Limited

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Bonds/Debentures*

(rate of interest 12.5%, due for conversion on - 04.02.2013)

100.000

0.000

Term Loans

(i) From Banks:(Secured)

 

 

SBI TUF I - Quarterly Due Last due date 31.03.2012

Security

Primary - 1st Charge on Scheme Assets

Collateral - Paripasu 1st Charge on Fixed Assets with IDBI and Indian Bank. Paripasu llnd Charge on Current Assets with IDBI and Indian Bank. Guarantee - Personal Guarantee T.R. Dhinakaran, D. Nirmala Corporate Guarantee of Shri Ramalinga Mills Limited.

0.016

1.920

SBI TUF II - Quarterly Due Last due date 31.03.2013

Security

Primary - 1st Charge on Scheme Assets Collateral - Paripasu 1st Charge on Fixed Assets with IDBI and Indian Bank. Paripasu llnd Charge on Current Assets with IDBI and Indian Bank. Guarantee - Personal Guarantee T.R. Dhinakaran, D. Nirmala Corporate Guarantee of Shri Ramalinga Mills Limited.

6.187

11.730

SBI TUF III - Quarterly Due Last due date 31.03.2014

Security

Primary - 1st Charge on Scheme Assets

Collateral - Paripasu 1st Charge on Fixed Assets with IDBI and Indian Bank.

Paripasu llnd Charge on Current Assets

IDBI and Indian Bank. Guarantee - Personal Guarantee T.R. Dhinakaran, D. Nirmala Corporate Guarantee of Shri Ramalinga Mills Limited.

3.810

5.618

SBI TUF IV - Quarterly Due Last due date 31.03.2018

Security

Primary - 1st Charge on Scheme Assets Collateral - Paripasu 1st Charge on Fixed Assets with IDBI and Indian Bank. Paripasu llnd Charge on Current Assets with IDBI and Indian Bank. Guarantee - Corporate Guarantee of Shri Ramalinga Mills Limited.

185.199

195.257

IDBI Corporate Loan-Quarterly Due Last Due date 01.01.2014

Security

Primary - Paripasu 1st Charge on Fixed Assetswith SBI and Indian Bank. Collateral Paripasu llnd Charge on Current Assetswith SBI and Indian Bank. Guarantee - Corporate Guarantee of Shri Ramalinga Mills Limited.

12.145

18.000

Indian Bank Corporate Loan-Quarterly Due.

Last due date 31.03.2015

Security

Primary - Paripasu 1st Charge on Fixed Assets with SBI and IDBI Collateral Paripasu llnd Charge on Current Assets with SBI and IDBI. Guarantee - Corporate Guarantee of Shri Ramalinga Mills Limited

19.386

25.500

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from banks: secured

 

 

State Bank of India

Security

Primary - 1st Charge on the Current Assets of the Company Collateral - Paripasu 1st Charge on Fixed Assets with IDBI and Indian Bank Guarantee - Corporate Guarantee of Shri Ramalinga Mills Limited.

306.119

269.818

TMB Limited, Key Loan

Security

Primary - Pledge of Cotton Stock Guarantee - Corporate Guarantee of Shri Ramalinga Mills Limited.

99.285

199.999

IDBI Bank Limited - Pledge Loan

0.000

80.000

Total

732.147

807.842

 

Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

Long term Borrowings

 

 

Deferred payment liabilities -

IFST Loan-Unsecured

 

0.327

 

1.990

Deposits - Unsecured

0.421

0.544

Loans and advances from related parties - Unsecured

 

 

Shri Ramalinga Mills Limited Aruppukottai   

225.035

208.591

T.R. Dhinakaran, Aruppukottai         

13.802

11.495

D. Nirmala, Aruppukottai               

3.511

3.220

Kedia Enterprises, Mumbai Trade Deposit

7.475

7.000

Other loans and advances (Specify) - Unsecured

 

 

Gamma Green Power Limited, Chennai Trade Deposit

10.000

10.000

Kedia Exports and Industries, Mumbai Trade Deposit

10.661

10.000

Total

271.232

252.840

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name 1 :

Krishnan and Raman

Chartered Accountants

Address :

42, Sevalpatti South Street, Rajapalayam - 626 117, Tamilnadu, India

Tel. No.:

91-4563-222974

 

 

Name 2 :

K. Subramanian and Company

Chartered Accountants

Address :

No.,153, North Veli Street Simmakkal, Madurai - 625 001, Tamilnadu, India

Tel. No.:

91-452-2621349

 

 

Associate Companies :

v      Shri Ramalinga Mills Limited, Aruppukottai

v      Harshni Textiles Mills Limited, Anamalai

v      Lakshmi Electrical Drives Limited, Textile Division - Sunspintex, Anamalai

v      Aruppukottai Shri Ramalinga Spinners Private Limited, Aruppukottai

v      Sri Jayajothi and Company Limited, O.E. Division, Virudhunagar

v      Sri Jayajothi Textiles Mills Private Limited, Keelarajakularaman, Rajapalayam

 

 

Firms (Other Related Parties) :

v      Kedia Enterprises

v      Nirmala and Company

 

 

CAPITAL STRUCTURE

 

As on 25.07.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

24000000

Equity Shares

Rs.10/- each

Rs.240.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

13800000

Equity Shares

Rs.10/- each

Rs.138.000 millions

 

 

 

 

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

14000000

Equity Shares

Rs.10/- each

Rs.140.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

13800000

Equity Shares

Rs.10/- each

Rs.138.000 millions

 

 

 

 

 

Number of shares held by share holders more than 5% of total shares

 

Names of Shareholders

31.03.2012

 

Shri Ramalinga Mills Limited

2508300

T.R. Dhinakaran

1249900

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

138.000

138.000

138.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(275.172)

(75.779)

(119.672)

NETWORTH

(137.172)

62.221

18.328

LOAN FUNDS

 

 

 

1] Secured Loans

732.147

807.842

615.255

2] Unsecured Loans

271.232

252.840

226.210

TOTAL BORROWING

1003.379

1060.682

841.465

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

866.207

1122.903

859.793

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

363.555

404.429

438.870

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

10.000

10.000

0.000

DEFERRED TAX ASSETS

99.123

13.600

38.817

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
317.397

818.194

359.426

 

Sundry Debtors
120.846

135.978

119.758

 

Cash & Bank Balances
5.201

11.546

10.839

 

Other Current Assets
25.037

26.863

19.410

 

Loans & Advances
33.496

29.201

34.482

Total Current Assets
501.977

1021.782

543.915

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
67.612

285.528

123.556

 

Other Current Liabilities
33.088

32.605

33.554

 

Provisions
7.748

8.775

4.699

Total Current Liabilities
108.448

326.908

161.809

Net Current Assets
393.529

694.874

382.106

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

866.207

1122.903

859.793

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

735.195

944.682

857.794

 

 

Other Income

11.272

7.136

17.197

 

 

TOTAL                                     (A)

746.467

951.818

874.991

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

528.238

496.595

479.784

 

 

Purchase of Stock-in-Trade

0.000

1.036

2.391

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

54.839

(61.569)

(3.024)

 

 

Employee benefit expense

72.157

79.069

74.735

 

 

Other expenses

190.898

227.790

214.409

 

 

Customs Duty Paid

0.189

0.000

--

 

 

Reversal of Earlier Years Excess Provision of Income Tax

(1.664)

0.000

--

 

 

TOTAL                                     (B)

844.657

742.921

768.295

 

 

 

 

 

Less

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

(98.190)

208.897

106.696

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

144.690

93.308

89.092

 

 

 

 

 

 

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

(242.880)

115.589

17.604

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

42.036

46.479

48.148

 

 

 

 

 

 

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

(284.916)

69.110

(30.544)

 

 

 

 

 

Less

TAX                                                                  (H)

(85.522)

25.217

(38.817)

 

 

 

 

 

 

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

(199.394)

43.893

8.273

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods calculated on FOB Basis

89.310

165.277

180.172

 

TOTAL EARNINGS

89.310

165.277

180.172

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(14.45)

3.18

0.60

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2012

(1st Quarter)

30.09.2012

(2nd Quarter)

Net Sales

 

205.140

228.570

Total Expenditure

 

176.050

197.400

PBIDT (Excl OI)

 

29.090

31.170

Other Income

 

1.100

0.970

Operating Profit

 

30.190

32.140

Interest

 

32.240

31.700

Exceptional Items

 

0.000

0.000

PBDT

 

(2.050)

0.440

Depreciation

 

10.220

10.340

Profit Before Tax

 

(12.270)

(9.900)

Tax

 

0.000

0.000

Provisions and contingencies

 

0.000

0.000

Profit After Tax

 

(12.270)

(9.900)

Extraordinary Items

 

0.000

0.000

Prior Period Expenses

 

0.000

0.000

Other Adjustments

 

0.000

0.000

Net Profit

 

(12.270)

(9.900)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
(26.71)

4.61

0.95

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(38.75)

7.32
(3.56)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(32.92)

4.85

(3.11)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
2.08

1.11

(1.67)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
(8.11)

22.30

54.74

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
4.63

3.13

3.36

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

No

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

 

 


TURNOVER AND PROFITABILITY:

 

The Company has achieved an overall Turnover of Rs.735.100 millions during the year against the turnover of Rs.944.600 millions for the previous year, resulting in a decrease of Rs.209.500 millions.

 

The accumulated loss as on 31.3.2012 is Rs.275.100 millions as against the Paid up capital of Rs.138.000 millions thus exceeding the paid up capital by Rs.137.100 millions. As the Company's Net worth is completely eroded it has become a Sick company under Sick Industrial Companies (Special provisions) Act, 1985 and they have to intimate the BIFR after the accounts are approved by the AGM on 25.7.2012.

 

The dismal performance is due to multiple factors such as high volatility in the price of cotton and yarn touching historic peak and low, frequent change of Government policy in export of cotton unexpected power interruptions power cut at 30% which is now 40% driving them to seek power from private power producers and using diesel generators at higher cost, the continuous slump in the world economy resulting in lesser export opportunities and also higher interest cost.

 

MANAGEMENT DISCUSSION ANDANALYSIS:

 

FUTURE:

The Government of India has been allowing as well as and banning exports of cotton alternatively. Recently it has again allowed export of cotton. The vagaries of Government Policy has not been helpful to the Industry. Hence the price of cotton has been varying steeply at short intervals. As long as wild policy swings continues from the side of the Government, the fortunes of the spinning sector would also be subjected to high volatility. However policies are expected to be favourable to farming sector and increase of cotton yield per acre with hybrid seeds is also expected. How global recovery pans out would also impact the industry to a large extent.

 

CONTINGENT LIABILITIES

(To the extend not provided for)

Particulars

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

a. Claims against the company not acknowledged as debt.

--

--

b. Guarantees

1.287

1.287

c. Other money for which the company is contingently liable

 

 

Inland Letter of Credit

16.790

8.200

Inland LC Bills Discounted

10.886

--

Foreign LC Bills Discounted

3.430

2.993

 

FIXED ASSETS:

 

v      Land

v      Building

v      Plant and Machinery

v      Furniture and Fixtures

v      Vehicles

 

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 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 pyments 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.54.39

UK Pound

1

Rs.88.75

Euro

1

Rs.72.19 

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

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.