MIRA INFORM REPORT

 

 

Report Date :

20.03.2013

 

IDENTIFICATION DETAILS

 

Name :

LEIGHTON WELSPUN CONTRACTORS PRIVATE LIMITED (w.e.f 29.04.2011)

 

 

Formerly Known As :

LEIGHTON CONTRACTORS (INDIA) PRIVATE LIMITED

 

 

Registered Office :

Tower 3, 7th Floor, Equinox Business Park, Off BKC, LBS Marg, Kurla (West), Mumbai – 400 070, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

20.11.1998

 

 

Com. Reg. No.:

11-117187

 

 

Capital Investment / Paid-up Capital :

Rs.1418.800 millions

 

 

CIN No.:

[Company Identification No.]

U99999MH1998FTC117187

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUML03930D

 

 

PAN No.:

[Permanent Account No.]

AAACL3338D

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Construction Activity

 

 

No. of Employees :

Information declined by the Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (62)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 13930000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having fine track record. There appears some dip in the profitability of the company during current year. However, financial position of the company is good. Trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered for normal 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.

 

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

A+ (Long Term)

Rating Explanation

Adequate degree of safety it carry low credit risk

Date

26.12.2012

 

 

Rating Agency Name

CRISIL

Rating

A1+ (Short Term)

Rating Explanation

Very strong degree of Safety it carry lowest credit risk.

Date

26.12.2012

 

 

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.

 

INFORMATION DECLINED

 

Management non-cooperative

(Contact No.: 91-22-67190000)

 

LOCATIONS

 

Registered Office :

Tower 3, 7th Floor, Equinox Business Park, Off BKC, LBS Marg, Kurla (West), Mumbai – 400 070, Maharashtra, India

Tel. No.:

91-22-67190000

Fax No.:

91-22-67190199

E-Mail :

gangaprasad.kurmi@leighton.co.in

kailsh.didwania@leighton.co.in

suresh.seshadri@leighton.co.in

accounts@iwin.co.in

Website :

www.leightonwelspun.com

 

 

Branch Office 1 :

8/F, Vatika City Point, M.G. Road, Opposite First India Place, Gurgaon – 122 002, Haryana, India

Tel. No.:

91-124-4958200

Fax No.:

91-124-4958201

 

 

Branch Office 2 :

Ramanujan IT City, Taramani, Rajiv Gandhi  Salai (OMR), Chennai – 600 113, Tamilnadu, India

Tel. No.:

91-44-66674100

Fax No.:

91-44-66674108

 

 

DIRECTORS

 

As on 24.08.2012

 

Name :

Mr. Parvez Keki Umrigar

Designation :

Director

Address :

164, Bora Bazar, Fort, Mumbai – 400 001, Maharashtra, India

Date of Birth/Age :

02.06.1963

Date of Appointment :

28.04.2011

DIN No.:

00106689

 

 

Name :

Mr. Peter Allan Gregg

Designation :

Director

Address :

71, Culter Road, Clontarf NSW , Australia – 2093

Date of Birth/Age :

24.02.19554

Date of Appointment :

28.04.2011

DIN No.:

03423620

 

 

Name :

Mr. Peter Geoffrey Pollard

Designation :

Director

Address :

Houe No.2, 74 Mount Kellett Road, Hong Kong

Date of Birth/Age :

19.03.1958

Date of Appointment :

09.05.2012

DIN No.:

05246605

 

 

Name :

Mr. Ian Leslie Edwards

Designation :

Director

Address :

DD 230 Lot 331 7A Siu Hang Hau Village New Territories Great Britain

Date of Birth/Age :

14.06.1962

Date of Appointment :

13.04.2012

DIN No.:

05253949

 

 

Name :

Mr. William Kernot Himilton

Designation :

Director

Address :

16 Austral TCE Malvern, Australia

Date of Birth/Age :

03.11.1954

Date of Appointment :

17.07.2012

DIN No.:

05329984

 

 

KEY EXECUTIVES

 

Name :

Mr. Gangaprasad Kurmi

Designation :

Secretary

Address :

C 37, 202, Devpooja Chambers, Sector – 3, Miraroad, Thane – 401107, Maharashtra, India

Date of Birth/Age :

20.06.1976

Date of Appointment :

28.07.2011

Pan No.:

AKYPK9874G

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 24.08.2012

 

Names of Shareholders

 

 

No. of Shares

Leighton International Limited, Cayman Islands

 

92219601

Leighton Offshore Pte Limited, Singapore

 

1

Welspun Infra Projects Private Limited, India

 

49656709

TOTAL

 

141876311

 

As on 24.08.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

65.00

Bodies corporate

 

35.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Construction Activity

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the Management

 

 

Bankers :
  • ICICI Bank Limited, Mumbai, Maharashtra, India 
  • Axis Bank Limited, Mumbai, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

Rupee term loans from banks

750.000

0.000

Total

750.000

0.000

 

Banking Relations :

--

 

 

Financial Institution :

Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai – 400 025, Maharashtra, India

 

 

Auditors :

 

Name :

B S R and Associates

Chartered Accountants

Address :

Lodha Excellus, 1st Floor Apollo Mills Compound, N. M. Joshi Marg, Mahalaxmi,

Mumbai – 400 011, Maharashtra, India

PAN No.:

AADFB6889R

 

 

Holding Company:

Leighton International Limited, Cayman Islands

 

 

Ultimate Holding Company:

Leighton Holdings Limited, Australia

 

 

Associate :

Welspun Corp Limited, India (CIN No.: L27100GJ1995PLC025609)

 

 

Joint Venture :

  • Leighton OSE
  • Leighton – Infra 13 (unincorporated JV)

 

 

CAPITAL STRUCTURE

 

After 24.08.2012

 

Authorised Capital : Rs.1535.000 millions

 

Issued, Subscribed & Paid-up Capital : Rs.1418.763 millions

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

142500000

Equity Shares

Rs.10/- each

Rs.1425.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

141876311

Equity Shares

Rs.10/- each

Rs.1418.800 millions

 

 

 

 

 

 

 

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

1418.800

1418.800

1418.763

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2063.100

1185.600

1349.415

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

3481.900

2604.400

2768.178

LOAN FUNDS

 

 

 

1] Secured Loans

750.000

0.000

0.000

2] Unsecured Loans

0.600

1708.400

2147.128

TOTAL BORROWING

750.600

1708.400

2147.128

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

4232.500

4312.800

4915.306

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1896.100

943.700

956.709

Capital work-in-progress

44.800

35.500

1.963

 

 

 

 

INVESTMENT

39.400

14.500

1378.408

DEFERRED TAX ASSETS

188.500

206.300

151.766

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000
0.000

0.000

 

Sundry Debtors
2443.300
1908.200

3957.207

 

Cash & Bank Balances
2525.300
4575.000

833.967

 

Other Current Assets
3361.000
4304.600

4017.303

 

Loans & Advances
2236.800
2133.700

1782.813

Total Current Assets
10566.400
12921.500

10591.290

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditors
4829.600
5874.200

6107.274

 

Other Current Liabilities
3481.900
3068.400

1864.594

 

Provisions
191.200
866.100

192.962

Total Current Liabilities
8502.700
9808.700

8164.830

Net Current Assets
2063.700
3112.800

2426.460

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

4232.500

4312.800

4915.306

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

18015.000

18488.480

18270.825

 

 

Other Income

 

 

350.883

 

 

TOTAL                                     (A)

18015.000

18488.480

18621.708

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Site and Administrative Cost

NA

15822.810

16120.731

 

 

TOTAL                                     (B)

NA

15822.810

(Including Interest)

16120.731

 

 

 

 

 

Less

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

NA

 

2500.977

 

 

 

 

 

Less

INTEREST                                                         (D)

NA

 

347.758

 

 

 

 

 

 

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

NA

2665.670

2153.219

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

NA

309.240

262.010

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

NA

2356.430

1891.209

 

 

 

 

 

Less

TAX                                                                  (H)

NA

1142.190

608.584

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

877.500

1214.240

1282.625

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1064.230

1349.410

66.790

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

NA

121.420

0.000

 

 

Interim Dividend Paid

NA

1378.000

0.000

 

BALANCE CARRIED TO THE B/S

NA

1064.230

1349.415

 

 

 

 

 

 

Earnings Per Share (Rs.)

6.18

8.56

10.51

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
4.87
6.57

6.89

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
NA
NA

10.35

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
NA
16.99

16.38

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
NA
0.90

0.68

 

 
 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.22
0.66

0.78

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
1.24
1.32

1.30

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Sundry Creditors

4829.600
5874.200

6107.274

 

 

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

No

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

No

34) External Agency Rating, if available

Yes

 

 


Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Rupee Term loans from banks

0.000

855.900

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from others

0.600

852.500

Total

0.600

1708.400

 

BACKGROUND:

 

The company was incorporated on 20th November, 1998. The Company is a subsidiary of Leighton International Limited a company incorporated under the laws of Cayman Islands, which is a subsidiary of Leighton Holdings Limited, Australia. On 29th April, 2011, the existing shareholder Leighton International Limited transferred by way of sale 49656709 equity shares having face value of Rs.10 each equivalent to 35% of total shares of Leighton Contractors (India) Private Limited to Welspun Infra Projects Private Limited. By virtue of the said share purchase deal, w.e.f 29th April, 2011 the name of the Company has been changed from Leighton Contractors (India) Private Limited to Leighton Welspun Contractors Private Limited. The Company is in the business of acquiring /offering technical know-how on a contractual basis for construction of commercial and industrial property, installation of plants and equipment and provision of other related services.

 

FINANCIAL RESULTS:

 

FY 2011-12 was a challenging year. The macro business environment in the year was characterized by uncertainty and volatility. The Indian economy witnessed lower economic growth, resulting from global slowdown and tightened liquidity to tame rising inflation. The infrastructure industry witnessed increased competition due to fewer projects across Asia and Middle East besides other challenges related with delayed approvals for projects. The Company performed reasonably well despite these constraints and challenging environment. Total revenues for the year were Rs.18015.000 millions, marginally lower than previous year figures of Rs.18485.000 millions. Net Profit for the year was Rs.877.500 millions, lower compared to Rs.1214.200 millions in the previous year. Nevertheless, the execution schedule of their existing projects remained largely on track. During the year, the Company has been responsible for a large number of iconic projects across various sectors in India including, the Pipe Replacement Project (PRP2) for ONGC which was the biggest contract ever awarded by ONGC. The Chenani-Nashri tunnel located in the lower Himalayan Range is slated as one of India's longest road tunnels. The Company also initiated the construction of two building projects Wave 1 and Wave 11 in partnership with Infra-13 and the joint venture would be scaling up the operations in the coming year. They are committed to developing innovative construction methods that add value to projects and to client relationships.

 

CONTINGENT LIABILITIES

 

Particulars

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

Entry tax matter in appeal

1.000

1.000

Income tax matter in Appeal A.Y. 2007-08

15.900

21.200

Customs Duty

75.000

75.000

Outstanding Bank Guarantees and Letter of Credits

10942.200

11145.600

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U99999MH1998FTC117187

Name of the company

LEIGHTON WELSPUN CONTRACTORS PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

302-303, Windsor Building, 3rd Floor, CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India

E-Mail: gangaprasad.kurmi@leighton.co.in

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

10313261

Type of charge

  • Book Debts
  • Movable Property
  • Floating Charge

Particular of charge holder

Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai – 400 025, Maharashtra, India

E-Mail: debenturetrustee@axistrustee.com

Nature of instrument creating charge

Deed of Hypothecation dated 12th January, 2012 at Gurgaon in favour of Axis Trustee Services Limited acting as the Security Trustee for the benefit of lenders.

Date of instrument Creating the charge

12.01.2012

Amount secured by the charge

Rs.11000.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

ICICI Bank: 3.25 % p.a. above 1-Base

Axis Bank: Commission - (1) 0.45% p.a. payable quarterly in advance for Performance Bank Guarantee and Financial Bank Guarantee

 

Terms of Repayment

Repayable on demand

 

Margin

Nil

 

Extent and Operation of the charge

The charge shall operate by way of first pari passu charge on entire current assets (present and future) and second pari passu charge on the movable properties and equipments of the Company

Short particulars of the property or asset(s) charged (including complete address and location of the property)

First pari passu charge on entire current assets (present and future)

 

Second pari passu charge on the movable properties and equipments

Date of instrument modifying the charge

13.10.2011

Particulars of the present modification

The facilities from ICICI Bank Limited and Axis Bank Limited has increased from Rs.6500.000 millions to Rs.11000.000 Millions


FIXED ASSETS:

 

·         Buildings

·         Plant and Machinery

·         Office Equipments

·         Computer Equipment

·         Furniture and Fixtures

·         Vehicles

·         Leasehold Properties

·         Computer Software

 

NEWS:

 

GREEN COAL HANDLING TERMINAL AT VIZAG PORT SET TO BEGIN OPS

 

January 31, 2013

Vizag General Cargo Berth Private Limited (VGCB), a 74:26 joint venture between Sterlite Industries (India) Limited and Leighton Welspun Contractors Private Limited, would start commercial operations of its first fully automated green coal handling terminal at Visakhapatnam in the current quarter.

 

The company stated that it had obtained provisional permission to start operations of the project, which has been implemented at a total cost of $150 million.

 

“Having past experience in executing large projects helped us in predicting issues beforehand and planning accordingly,” TPK Patro, associate vice president, finance, stated in a press release on Wednesday.

 

The VGCB, has been awarded the general cargo berth (GCB) at the outer harbour of Visakhapatnam Port for mechanisation of coal handling facilities and upgradation for handling of coking coal and steam coal on design, build, finance, operate and transfer (DBFOT) basis through private sector participation for a 30-year concession period.

 

The project is one of the measures planned by the Visakhapatnam Port Trust to reduce coal dust pollution in the ecosystem.

 

The project includes extension of berth to cater to 200,000 DWT capacity vessels, mechanisation of complete coal-based cargo handling facilities right from unloading of coal from ship, storage of the imported coals and loading of coal into railway wagon through rapid wagon loading system.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.26

UK Pound

1

Rs.81.94

Euro

1

Rs.70.21

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

62

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.