|
Report Date : |
05.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
LMW MACHINERY LIMITED [w.e.f. 02.09.2011] |
|
|
|
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Formerly Known
As : |
RIETER LMW MACHINERY LIMITED |
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Registered
Office : |
Perianaickenpalaya Coimbatore– 641020, Tamilnadu, India |
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Country : |
India |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
31.05.1993 |
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Com. Reg. No.: |
18-004443 |
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Capital Investment
/ Paid-up Capital : |
Rs.250.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U29199TZ1993PLC004443 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBR03716G |
|
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|
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PAN No.: [Permanent Account No.] |
AABCR0309M |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Manufacturer of Ring frame assemblies and related parts.. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 1700000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
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Comments : |
Subject is a wholly owned subsidiary of “Lakshmi Machine Works
Limited”. It is an established company having a moderate track record. The latest
financial are not made available with the government department. As per previous year’s record, the company performance seems to good.
Financially performed well in the year 2010 – 2011. Trade relations are
reported to be fair. Business is active. Payments are reported to be unknown. The company can be considered for business dealing with some caution. Note: This company is proposed to merged with its holding company i.e.
|
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 |
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 / Head Office: |
Perianaickenpalaya Coimbatore– 641020, Tamilnadu, India |
|
Tel. No.: |
91-42-22692371/79/6612255/302255/2635100 |
|
Fax No.: |
91-42-2682514/42/2360215 |
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E-Mail : |
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Factory: |
Muthogoundenpudur – 641406, Coimbatore, India |
DIRECTORS
As on 30.07.2012
|
Name : |
Mr. Rangappa Naidu Rajendran |
|
Designation : |
Director |
|
Address : |
Angalamman Kovil, Thottam, Palayaputhur, S.R.K.V Post, Coimbatore –
641020, Tamilnadu, India |
|
Date of Birth/Age : |
21.03.1945 |
|
Date of Appointment : |
16.08.2011 |
|
DIN No.: |
00005505 |
|
|
|
|
Name : |
Mr. Kalyanasundara Venkat Raman |
|
Designation : |
Director |
|
Address : |
79-A, Temple Street Krishna Colony, Singanallur Post, Coimbatore –
641005, Tamilnadu India |
|
Date of Birth/Age : |
09.07.1645 |
|
Date of Appointment : |
17.08.2011 |
|
DIN No.: |
00004297 |
|
|
|
|
Name : |
Mr. Shiekh Khadershah Najmulhussain |
|
Designation : |
Director |
|
Address : |
No. 31, D Jayavarthanavelu Nagar, Peelkamedu, Coimbatore – 641004, Tamilnadu
India |
|
Date of Birth/Age : |
20.01.1943 |
|
Date of Appointment : |
17.08.2011 |
|
DIN No.: |
02723029 |
KEY EXECUTIVES
|
Name : |
Mr. R Ravi |
|
Designation : |
Secretary |
|
Address : |
No. 5, 2nd Cross, Ramalinga Nagar, K.K. Pudur, Coimbatore –
641038, Tamilnadu India |
|
Date of Birth/Age : |
23.09.1968 |
|
Date of Appointment : |
17/08/2011 |
|
PAN No.: |
AFVPR0802D |
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|
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.07.2012
|
Names of Shareholders |
|
No. of Shares |
|
Lakshmi Machine Works Limited |
|
24998400 |
|
R. Venkatrangappan |
|
200 |
|
Sanjay Jayavarthanavelu |
|
200 |
|
R Rajendran |
|
200 |
|
R Rajyalakshmi |
|
300 |
|
Lalithadevi Sanjay Jayavarthanavelu |
|
300 |
|
Uttara Ravi |
|
200 |
|
Nethra J.S. Kumar |
|
200 |
|
Total |
|
25000000 |
Equity Share Break up (Percentage of Total Equity)
As on 30.07.2012
|
Category |
Percentage |
|
Bodies corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in the business of ring frame assemblies and
related parts and principally an export oriented unit. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Ring Frame Assembly |
Sections |
22,000 |
22,000 |
18,716 |
|
Head and Foot stock |
|
NA |
NA |
509 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· Indian Bank, Coimbatore Main Branch, 31, Variety Hall Road, Coimbatore - 641001, Tamilnadu, India
· Citibank NA, 2 Club House Road, Anna Salai, Chennai - 600002, Tamilnadu, India · Indian Overseas Bank Big Bazaar Street Coimbatore -641001,Tamilnadu,India |
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Facilities : |
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Banking
Relations : |
--- |
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Auditors : |
|
|
Name : |
S. Krishnamoorthy
and Company Chartered Accountants |
|
Address : |
Kanapathy Tower,3rd Floor,1391/A1,Sathy Road, Ganapathy, Coimbatore - 641012, Tamil Nadu India |
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PAN No.: |
AALFS4188C |
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|
|
List of Related
Parties where control exists: |
· Maschinenfabrik Rieter AG*, Switzerland · Rieter Holding Limited ·
Lakshmi Machine Works Limited * CIN no.- L29269TZ1962PLC000463 Note: *Represents parties with whom the Company had
transactions. |
|
|
|
CAPITAL STRUCTURE
As on 30.07.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
250.000 |
250.000 |
250.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
196.044 |
87.241 |
110.968 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
446.044 |
337.241 |
360.968 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
108.308 |
151.443 |
|
|
2] Unsecured Loans |
262.312 |
244.028 |
247.595 |
|
|
TOTAL BORROWING |
262.312 |
352.336 |
399.038 |
|
|
DEFERRED TAX LIABILITIES |
18.032 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
726.388 |
689.577 |
760.006 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
362.979 |
407.901 |
448.638 |
|
|
Capital work-in-progress |
6.592 |
1.842 |
16.094 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
41.668 |
30.143 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
394.700
|
179.308 |
155.219 |
|
|
Sundry Debtors |
87.519
|
44.491 |
0.443 |
|
|
Cash & Bank Balances |
41.383
|
47.833 |
67.991 |
|
|
Other Current Assets |
18.491
|
27.279 |
39.774 |
|
|
Loans & Advances |
84.011
|
56.471 |
54.599 |
|
Total
Current Assets |
626.104
|
355.382 |
318.026 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
268.082
|
108.871 |
39.198 |
|
|
Other Current Liabilities |
1.205
|
8.345 |
13.697 |
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
269.287
|
117.216 |
52.895 |
|
|
Net Current Assets |
356.817
|
238.166 |
265.131 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
726.388 |
689.577 |
760.006 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1734.894 |
634.916 |
926.286 |
|
|
|
Other Income |
26.692 |
18.229 |
21.756 |
|
|
|
TOTAL (A) |
1761.586 |
653.145 |
948.042 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Changes in inventories |
1258.122 |
0.000 |
0.000 |
|
|
|
Manufacturing services cost |
110.078 |
459.708 |
742.797 |
|
|
|
Employee related expense |
105.172 |
79.278 |
73.945 |
|
|
|
Other expense |
39.683 |
74.940 |
193.340 |
|
|
|
Prior perod expense |
0.000 |
0.000 |
6..791 |
|
|
|
TOTAL (B) |
1513.055 |
613.926 |
1016.873 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
248.531 |
39.219 |
(68.831) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
19.791 |
14.329 |
12.397 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
228.740 |
24.890 |
(81.228) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
59.217 |
59.972 |
53.699 |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
BEFORE TAX (E-F) (G) |
169.523 |
(35.082) |
(134.927) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
60.720 |
(11.355) |
(48.932) |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
AFTER TAX (G-H) (I) |
108.803 |
(23.727) |
(85.995) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(87.048) |
(63.321) |
22.674 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
21.755 |
(87.048) |
63.321 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1734.411 |
634.916 |
925.989 |
|
|
TOTAL EARNINGS |
1734.411 |
634.916 |
925.989 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
274.058 |
68.339 |
70.260 |
|
|
|
Stores & Spares |
11.207 |
6.147 |
7.402 |
|
|
|
Capital Goods |
2.752 |
0.454 |
17.352 |
|
|
TOTAL IMPORTS |
288.017 |
74.940 |
95.014 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.35 |
(0.95) |
(3.44) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.18
|
(3.63) |
(9.07) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.77
|
(5.52) |
(14.56) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.14
|
(4.60) |
(17.60) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.38
|
(0.10) |
(0.14) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.19
|
1.40 |
1.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.33
|
3.03 |
6.01 |
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 |
No |
|
24] |
Banking facility details |
No |
|
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 |
No |
|
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 |
OPERATIONS
The company had a turnover of Rs.1,734.894 Millions during the year
compared to Rs, 634.920 Millions in the previous year resulting in a net profit
of Rs.108.803 Millions (Previous year loss Rs.23.727 Million). This profit
could be possible only because of the higher sales volume and cost reduction
methods adopted by the company. The adverse exchange value has also a
significant role in the above.
FUTURE OUTLOOK
The two Joint Venture Partners, viz. M/s. Rieter Machine Works Limited,
Switzerland and M/s. Lakshmi Machine works Limited, Coimbatore, as on outcome
of the mutual discussions, have decided that each one of them will build on
their own strengths going forward. In fact, M/s. Rieter Machine Works Limited.
have already set up their manufacturing unit at Pune, Maharashtra, India to
cater to the requirements of their Indian customers.
With this end in view, M/s. Rieter Machine Works Limited. Offered their
50% shareholding to M/s. Lakshmi Machine Works Limited., who have accepted the
offer. As a consequence, the supplies to M/s. Rieter Machine Works Limited. /
Rieter India Private. Limited. will come to a close on 30th June 2011.
Thereafter, on completion of the legal and procedural formalities, the
Company will become a wholly-own subsidiary of M/s. Lakshmi Machine Works
Limited and LMW will decide the products to be manufactured in the Company.
CONTINGENT
LIABILITIES
·
Disputed tax dues from the AY 1997-98 until Ay
2002-03and Ay 2005-06 is pending before concerned appellate authorities.
Pending disposal of the appeals no provision has been made in the
accounts in respect of the balance demand amounting to Rs.75.463 Millions.
· The income Tax Department had issued assessment orders for the assessment years 2003-04 and 2004-05 with demands aggregating to Rs.47.173 Millions primarily for the adjustments made on the purchase and sale prices with an associate company on the international transactions under the Transfer Pricing provisions of the Income tax Act, 1961. The Company has disputed the above demands and has preferred appeals against the assessments with the Commissioner of Income Tax (appeals). Pending disposal of the appeals, no provision has been made in the accounts in respect of the balance demand amounting to Rs.33.465 Millions tax arrears provision not made is Rs.113.408 Millions for appeals pending and 33.465 Millions for transfer pricing.
· In respect of AY 2008-09 until AY 2010-11, the income tax assessment including transfer pricing proceedings are pending.
· In respect of AY 2006-07, the Department has raised a demand of Rs.2.033 Millions. However there is an arithmetical error in the order which needs rectification, for which necessary application has been made. Hence no provision has been made nor demand included under contingent liability.
FIXED ASSETS
·
Buildings
·
Factory
·
Plant and Machinery
·
Imported second hand machines
·
Tool Holders
·
Jigs and Fixtures
·
Electrical Installations
·
Furniture and Fittings
·
Office Equipment
·
Computers
·
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] CFt 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.54.84 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
SPN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
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.