MIRA
INFORM REPORT
|
Report Date : |
24.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
NATIONAL SPOT EXCHANGE LIMITED |
|
|
|
|
Formerly Known
As : |
NATIONAL SPOT EXCHANGE FOR AGRICULTURE
PRODUCE |
|
|
|
|
Registered
Office : |
FT Tower, CTS No. 256 and 257, 4th Floor, Suren Road,
Chakala, Andheri (East), Mumbai-400093, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 (Profit and Loss) |
|
|
|
|
Date of
Incorporation : |
18.05.2005 |
|
|
|
|
Com. Reg. No.: |
11-153384 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 450.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U51100MH2005PLC153384 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCN1196R |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject provides an electronic, transparent, well
organized and centralized trading platform with the facility to access and
participate the market remotely. |
|
|
|
|
No. of Employees
: |
Information denied by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1410000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is jointly promoted by Financial Technologies India Limited
and National Agricultural Co-operative Marketing Federation of India Limited. Subject is a well established and reputed company having satisfactory
track record. The company has successful wipe out its losses during the
current year. The financial position of the company seems to be strong. Trade
relations are reported to be fair. Business is active. Payments are reported
to be usually correct and as per commitment. In view of experience promoter and strong holdings the company can be
considered for business dealings at usual 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.
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.
INFORMATION DENIED BY
|
Name : |
Mr. Sachindranath |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-22-67619900 |
|
Date : |
18.01.2013 |
LOCATIONS
|
Registered Office : |
FT Tower, CTS No. 256 and 257, 4th Floor, Suren Road,
Chakala, Andheri (East), Mumbai-400093, Maharashtra, India |
|
Tel. No.: |
91-22-67619900 |
|
Fax No.: |
91-22-67619931 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 18.06.2012
|
Name : |
Mr. Jignesh Prakash Shah |
|
Designation : |
Director |
|
Address : |
R-Square, CTS No. 547, Plot No. 29, Jai Hind Society, N S Road, No.12,
JVPD Scheme, Vile Parle (West), Mumbai-400067, Maharashtra, India |
|
Date of Birth/Age : |
12.01.1967 |
|
Qualification : |
BE |
|
Date of Appointment : |
18.05.2005 |
|
DIN No.: |
00064913 |
|
|
|
|
Name : |
Mr. Joseph Massey |
|
Designation : |
Director |
|
Address : |
702, C Wing, Trans Residency, MIDC, Off Mahakali Caves Road, Andheri
(East), Mumbai-400093, Maharashtra, India |
|
Date of Birth/Age : |
03.12.1961 |
|
Qualification : |
MBA |
|
Date of Appointment : |
18.05.2005 |
|
DIN No.: |
00043586 |
|
|
|
|
Name : |
Mr. Shankerlal Mohanlal Guru |
|
Designation : |
Director |
|
Address : |
Matru Ashish, C-23, Aryaman Bunglows, Near Thaltej Crossing, Opposite
Anand Nikotan Sch, Thaltej, Ahmedabad-380059, Gujarat, India |
|
Date of Birth/Age : |
01.08.1928 |
|
Qualification : |
Inter Science 1st
LLB |
|
Date of Appointment : |
15.05.2007 |
|
DIN No.: |
00068437 |
|
|
|
|
Name : |
Mr. Bhagwatrao Dhadaji Pawar |
|
Designation : |
Director |
|
Address : |
1 Prasad, Opposite
BMC, C Deccan Gymkhan A, Pune-411004, Maharashtra, India |
|
Date of Birth/Age : |
08.12.1942 |
|
Qualification : |
B Com, M Com, LLB and PHD |
|
Date of Appointment : |
15.05.2007 |
|
DIN No.: |
01711492 |
|
|
|
|
Name : |
Mr. Shreekant Yadav Javalgekar |
|
Designation : |
Director |
|
Address : |
206B, Natasha Nikita CHSL, Amrut Nagar, Ghatkopar (West),
Mumbai-400086, Maharashtra, India |
|
Date of Birth/Age : |
23.06.1955 |
|
Qualification : |
MBA |
|
Date of Appointment : |
25.02.2011 |
|
DIN No.: |
01268817 |
|
|
|
|
Name : |
Ms. Anjani Sinha |
|
Designation : |
Director |
|
Address : |
1405, Panchavati A, Mumbai-400072, Maharashtra, India |
|
Date of Birth/Age : |
14.01.1966 |
|
Qualification : |
CA, LLB, MBA, and Masters Degree in Economics and Commerce |
|
Date of Appointment : |
18.07.2011 |
|
DIN No.: |
01818400 |
|
|
|
|
Name : |
Mr. Ramanathan Devarajan |
|
Designation : |
Additional director |
|
Address : |
A-603, Gundechan Altura, Opposite St. Xavier School, LBS Marg, Kanjur
Marg, Mumbai-400078, Maharashtra, India |
|
Date of Birth/Age : |
06.05.1954 |
|
Qualification : |
CA |
|
Date of Appointment : |
30.11.2011 |
|
DIN No.: |
02604441 |
KEY EXECUTIVES
|
Name : |
Nirav Mahendra Pandya |
|
Designation : |
Secretary |
|
Address : |
Block No.3, 1st Floor, 22, Vijay Villa, Bajaj Road,
Vileparle (West), Mumbai-400056, Maharashtra, India |
|
Date of Birth/Age : |
25.09.1971 |
|
Date of Appointment : |
14.02.2011 |
|
PAN No.: |
ALPPP2934G |
|
|
|
|
Name : |
Mr. Sachindranath |
|
Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 18.06.2012
|
Names of Shareholders |
|
No. of Shares |
|
National Agricultural Coop. Mkt. Fed. India Limited, India |
|
100 |
|
Jignesh Prakash Shah |
|
1 |
|
Arshad Mohmd Khan |
|
1 |
|
Manjay Prakash Shah |
|
1 |
|
V. Hariharan |
|
1 |
|
Joseph Daniel Massey |
|
1 |
|
Financial Technologies (India) Limited, India |
|
44999895 |
|
Total |
|
45000000 |
Equity Share Break up (Percentage of Total Equity)
As on 18.06.2012
|
Category |
Percentage |
|
Government
Companies |
0.01 |
|
Bodies corporate |
99.99 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject provides an electronic, transparent, well
organized and centralized trading platform with the facility to access and
participate the market remotely. |
||||||||
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|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information denied by management |
|||||||||
|
|
|
|||||||||
|
Bankers : |
v ICICI Bank Limited,
Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India v Indusind Bank
Limited, Sonawalla Building, 57, Mumbai Samachar Marg, Fort, Mumbai-400001,
Maharashtra, India |
|||||||||
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|
|||||||||
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Facilities : |
|
|
|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : (As on 31.03.2011) |
|
|
Name : |
S.V.Ghatalia and Associates Chartered Accountants |
|
Address : |
6th Floor, Express
Towers, Nariman Point, Mumbai – 400021, Maharashtra, India |
|
PAN No.: |
AACFS6921Q |
|
|
|
|
Memberships : |
|
|
Holding Company
: (As on 31.03.2011) |
v Financial Technologies
(India) Limited, India CIN No.: L29142TN1988PLC015586 |
|
|
|
|
Subsidiary
Company: (As on 31.03.2011) |
v Indian Bullion
Market Association Limited, India CIN No.: U74900MH2007PLC171717 |
|
|
|
|
Fellow
Subsidiaries: (As on 31.03.2011) |
v
Atom Technologies Limited (atom) v
National Bulk Handling Corporation Limited (NBHC) v
Tickerplant Limited (Tickerplant) v
Financial Technologies Communications Limited
(FTCL) v Credit Market
Services Limited (CMSL) |
|
|
|
|
Associates: (As on 31.03.2011) |
v
Multi Commodity Exchange of India Limited (MCX) v MCX SX Stock
Exchange (MCX SX) |
CAPITAL STRUCTURE
As on 18.06.2012
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 |
|
|
|
|
|
|
45000000 |
Equity Shares |
Rs.10/- each |
Rs. 450.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
450.000 |
450.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
|
(95.880) |
(121.953) |
|
|
NETWORTH |
|
354.120 |
328.047 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
563.000 |
0.000 |
|
|
2] Unsecured Loans |
|
293.021 |
203.514 |
|
|
TOTAL BORROWING |
|
856.021 |
203.514 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.0000 |
|
|
|
|
|
|
|
|
TOTAL |
|
1210.141 |
531.561 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
211.252 |
255.880 |
|
|
Capital work-in-progress |
|
1.988 |
1.988 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
238.509 |
10.610 |
|
|
DEFERRED TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
0.000 |
0.000 |
|
|
Sundry Debtors |
|
896.960 |
12.058 |
|
|
Cash & Bank Balances |
|
169.763 |
92.976 |
|
|
Other Current Assets |
|
0.000 |
0.864 |
|
|
Loans & Advances |
|
569.806 |
310.180 |
|
Total
Current Assets |
|
1636.529 |
416.078 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
111.428 |
18.674 |
|
|
Other Current Liabilities |
|
762.545 |
130.495 |
|
|
Provisions |
|
4.164 |
3.826 |
|
Total
Current Liabilities |
|
878.137 |
152.995 |
|
|
Net Current Assets |
|
758.392 |
263.083 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
1210.141 |
531.561 |
|
Note: Profit and Loss for the year 2012 is only
available Balance Sheet is not available.
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
819.444 |
1528.222 |
177.046 |
|
|
|
Other Income |
124.464 |
20.375 |
33.184 |
|
|
|
TOTAL (A) |
943.908 |
1548.597 |
210.230 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of stock-in-trade |
0.000 |
|
223.806 |
|
|
|
Employee benefit expense |
82.063 |
79.939 |
|
|
|
|
Other expenses |
474.187 |
221.991 |
|
|
|
|
TOTAL (B) |
556.250 |
1435.382 |
223.806 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (A-B) (C) |
387.658 |
113.215 |
(13.576) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
15.632 |
31.776 |
0.125 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
372.026 |
81.439 |
(13.701) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
56.002 |
55.366 |
50.601 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX (E-F) (G) |
316.024 |
26.073 |
(64.302) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
59.655 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
256.369 |
26.073 |
(64.302) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(95.880) |
(121.953) |
(57.651) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
160.489 |
(95.880) |
(121.953) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
NA |
0.439 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
5.70 |
0.58 |
(1.88) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
27.16
|
1.68 |
(30.59) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
38.57
|
1.71 |
(36.32) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
NA
|
1.41 |
(9.57) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
NA
|
0.07 |
(0.20) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
NA
|
4.90 |
1.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
NA
|
1.86 |
2.72 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
|
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Creditors due to others |
|
111.428 |
18.674 |
|
|
|
|
|
|
Total |
|
111.428 |
18.674 |
|
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
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 |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
UNSECURED LOAN
|
Unsecured Loan |
31.03.2011 (Rs.
in Millions) |
31.03.2010 (Rs.
in Millions) |
|
Rupee term loans others unsecured |
290.000 |
200.000 |
|
Other debt unsecured |
3.021 |
3.514 |
|
Total |
293.021 |
203.514
|
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Corporate identity number of the company |
U51100MH2005PLC153384 |
|
Name of the company |
NATIONAL SPOT EXCHANGE LIMITED |
|
Address of the registered office or of the principal place of business in India of the company |
102-A Land Mark,Suren Road, Chakala Andheri (East), Mumbai-400093,
Maharashtra, India Email: |
|
This form is for |
Creation of charge |
|
Type of charge |
v Movable property
(not being pledge) v Floating charge |
|
Particular of charge holder |
Indusind Bank Limited, Sonawalla Building, 57, Mumbai Samachar Marg,
Fort, Mumbai-400001, Maharashtra, India Email: vlaxman@vsnl.com |
|
Nature of instrument creating charge |
Deed of Hypothecation by Borrower. |
|
Date of instrument Creating the charge |
25.07.2012 |
|
Amount secured by the charge |
Rs. 100.000 millions |
|
Brief of the principal terms an conditions and extent and operation of
the charge |
Rate of Interest Interest as may be stipulated by the bank from time to time. Terms of Repayment On demand. Margin As may be stipulated by Bank from time to time. Extent and Operation of the charge Hypothecation of Stocks (procured under orders financed by the Bank) as
described under Item No.15 as security for repayment of total facility/ies of
Rs.100.000 millions together with all interest, costs, charges, expenses and
other monies due and payable under the said facilities granted by the bank to
the Company. |
|
Short particulars of the property or asset(s) charged (including
complete address and location of the property) |
Hypothecation of Stocks (i.e. the physical stocks of approved
commodities acceptable to the Bank) procured under orders financed by the
Bank. |
FIXED ASSETS
v
Tangible Assets
·
Leasehold Premises
·
Office Equipments
·
Computer Hardware
·
Furniture and Fixtures
·
Vehicles
·
VSAT
v
Intangible Assets
·
Trade Mark
·
Computer Software
PRESS RELEASES
NSEL
joins hands with Kerala’s farmers to promote Western Ghats Agro Growers Limited
Mumbai, September 28, 2012
National Spot Exchange Limited (NSEL), India’s largest electronic
commodity spot exchange, and farmers from Kerala have promoted a joint stock
company called Western Ghats Agro Growers Limited (WGAGL) with an aim to
corporatise farmers, organize and make them equal partners in the agricultural
value chain. WGAGL was formally launched today at Idukki, Kerala by Prof. K. V.
Thomas, Honourable Minister of State for Consumer Affairs, Food and Public
Distribution, Government of India.
NSEL, a Financial Technologies Group enterprise, has taken the lead to
organize the farmers and to provide its financial and managerial support. Given
the strength of NSEL and its promoter, the Financial Technologies
Group, WGAGL can easily achieve a size. This entire initiative owes its origin
to the visionary ideas of Late Fr. Mathew Vadakkemury. He had a meeting with
senior officials of NSELaround 10 months back. In that meeting, the seed
to promote such company was sown. NSEL will forever feel indebted to
Late Father Mathew, who recently expired in a road accident, while working on
this project. NSEL is also indebted to the Church, which takes
initiatives to organise the people without any discrimination and stands for
them by spreading universal brotherhood. NSEL is appreciative of the
fathers’ endeavours in empowering the farming community of the high range
districts in association with WGAGL.
Inaugurating WGAGL, Prof. K. V. Thomas, Honourable Minister of
State for Consumer Affairs, Food and Public Distribution, Government of India,
said,” I congratulate National Spot Exchange and Financial Technologies Group
for this initiative, which will foster the Government’s vision of ensuring
inclusive growth and deal with the farmers’ problems head on.
Anjani Sinha, MD and CEO, NSEL, said, “WGAGL is a unique
initiative, which is of the farmers, by the farmers and for the farmers. It
will go a long way in making agriculture more remunerative for the farmers, and
thereby, provide significant momentum in agricultural growth in our country.”
Traditionally, the role of farmers in the agriculture value chain has
been confined to cultivation of crops and selling the same to local traders in
bulk immediately after harvesting. In general, price realisation for any
commodity is higher after sorting, grading, processing, packaging or value
addition in any other form. Since the farmers sell their produce in bulk
without any value addition, they are not able to take home such incremental
price advantage. This is the crux of the issue impeding agricultural growth in
India. This is why farmers are still not better off, even though prices are
going up and even though production is also going up in quantitative terms.
Unless we turn the table and make agriculture more remunerative for the
farmers, it would be difficult to get significant momentum in agricultural
growth in our country.
The right solution for this issue is to organize the farmers and make
them equal partner in agricultural value chain. Once the farmers form
corporatized entity, they will get the might to fight the entire world. It is a
great movement towards institutionalizing the farmers. Such institution
promoted by farmers can set up its own grading units, packaging units and
provide such services on a fee based model to all its farmer members. Such
entity can use spot exchange platform to sell produce of their farmer members
to all domestic buyers and consumers through spot exchange network. Gradually,
these companies can develop their own brand to market such produce directly in
overseas markets. Hence, the cost of intermediation will go down and farmers
will be able to fetch the maximum pie out of price paid by the consumer or by the
overseas buyer. This is the ideal model to protect and promote the interests of
Indian farmers.
During last one decade, futures exchanges in the country have created a wonderful platform for price risk management. Futures market also provides a benchmark price which can be referred to by the farmers. But, so far as the question of farmers’ participation in futures exchange is concerned, the issue faced by the regulator and the Government is that small and marginal farmers are not able to hedge on futures exchange due to meagre marketable surplus. In general, the trading lots on futures exchanges are higher, which becomes a bottleneck for small farmers to use it. The solution to the issue lies in creating farmers’ aggregators, who can function on behalf of the farmers. These aggregators can aggregate stock of their farmer members. After sorting and grading, they can convert it into marketable lots. Such marketable lots can be hedged on futures exchanges. The aggregator in turn can pass on all the benefits to the farmer members. However, till now, we have not witnessed many farmers’ aggregators coming into being. The WGAGL model is the right answer to this issue, because it will function as an aggregator for all its farmer members and use futures exchanges to hedge their price risks in related commodities. WGAGL will provide all such services to the farmer members on a fee based model. But, the best part is that whatever profit is made by WGAGL in providing all such services, the same will come back to the farmer members in the form of dividend after meeting all expenses and taxes. Hence, the small and marginal farmers of High range Kerala will be able to get the advantages of both spot exchange and futures exchange through WGAGL.
NSEL has set up its warehouses in the high range of Kerala, where
WGAGL will be able to store farmers’ produce. This will enable the growers to
avail bank loan by pledging warehouse receipts. This will enhance their holding
power and they will be able to fetch off-season premium. Once the model is
implemented at the ground level, it will be a big empowerment of the growers in
this region. There will be no compulsion to sell entire crop immediately after
harvesting.
Gradually WGAGL will graduate to become one stop shop for the farmers in
this region. It will tie up with agri input companies to provide seed,
fertilizer, pesticide and other inputs to the farmers. By virtue of
organizational strengths, it would be able to negotiate better terms, credit
period, etc. from the input suppliers, which can be a direct benefit to the
farmers. It should tie up with ICAR for promoting modern techniques to improve
productivity. It should promote organic farming and promote such products under
its banner in domestic as well as international market. In short, WGAGL should
not limit itself just being a marketing front, rather it should provide a
comprehensive package to its farmer members.
About National Spot Exchange Limited
National Spot Exchange Limited (NSEL) jointly promoted by Financial
Technologies India Limited (FTIL) and National Agricultural Co-operative
Marketing Federation of India Limited (NAFED), is a national level
institutionalized, electronic, and transparent spot exchange. NSEL is poised to
transform the rural economy by way of improving marketing efficiency for
agricultural produce. It is a state-of the-art organized and structured market
place providing facilities for risk fee and hassle free procurement and disposal
of farm produce. The Exchange provides customized solutions to various problems
faced by the farmers, traders, processors, exporters, importers, arbitrageurs,
investors and the general mass relating to agricultural marketing, storage,
warehouse receipt financing, etc.
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.53.77 |
|
|
1 |
Rs.85.13 |
|
Euro |
1 |
Rs.71.56 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
MRI |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.