MIRA INFORM REPORT
|
Report Date : |
14.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN SPECIAL STEELS LIMITED |
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Registered
Office : |
Vardhman Premises, Chandigarh Road, Ludhiana - 141010, Punjab |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
14.05.2010 |
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Com. Reg. No.: |
16-033930 |
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Capital
Investment / Paid-up Capital : |
Rs.185.554 Millions |
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CIN No.: [Company Identification
No.] |
L27100PB2010PLC033930 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JLDV01914D |
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PAN No.: [Permanent Account No.] |
AADCV4812B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Billets, Steel bars and rods and Bright
bars of various categories of Special and Alloys steels. |
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No. of Employees
: |
800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (57) |
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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 |
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Maximum Credit Limit : |
USD 7600000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having a fine track record. The financial position of the company is sound and healthy. The profit
margin is good. Trade relations are reported as decent. Business is active. Payment
terms are regular and as per commitment. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA- (Long Term Rating) |
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Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
04.10.2012 |
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Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short Term Rating) |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
04.10.2012 |
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 : |
Vardhman Premises, Chandigarh Road, Ludhiana - 141010, Punjab, India |
|
Tel. No.: |
91-161-2228943- 48 |
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Fax No.: |
91-161-2601048/ 2222616/ 2601040 |
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E-Mail : |
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Website : |
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Head Office and
Works : |
C-58, Focal Point, Ludhiana - 141010, Punjab, India |
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Tel. No.: |
91-161-2670707/ 09/ 5014243 - 44 |
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Fax No.: |
91-161-267 0503 |
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E-Mail : |
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Branch Office 1 : |
Plot No. 264, Sector 24, N.I.T., Faridabad – 121005, Haryana, India |
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Branch Office 2 : |
422 and 423, 4th Floor, B Wing, Jai Ganesh Vision, Akurdi, Pune – 411033, Maharashtra, India |
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Branch Office 3 : |
Gate No. 153, Pune-Nashik Highway, Kuruli, Chimbli Phata, Chakan, Pune – 411033, Maharashtra, India |
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Branch Office 4 : |
D-8, Industrial Estate, Opposite Tansi Building, Guindy, Chennai – 600032, Tamilnadu, India |
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Branch Office 5 : |
Village - Fauzi Matkota, Tehsil - Kichha, Distt. - Udham Singh Nagar, Rudrapur – 263153, Uttarakhand, India |
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Branch Office 6 : |
New No. 1/55E, Old No. 1/73 Kamarjar, Salai, Nazaratpet, Poonamallee, Chennai – 600032, Tamilnadu, India |
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Branch Office 7 : |
SPL - 1, Phase - I, Industrial Area, Bhiwadi, Distt.- Alwar – 301019, Rajasthan, India |
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Branch Office 8 : |
Premises of Arisht Spinning Mills, Sai Road, Baddi – 173205, Himachal Pradesh, India |
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Branch Office 9 : |
Plot Nos. 400-401, Block - C, Pioneer Industrial Park, Pathredi, Gurgaon – 123413, Haryana, India |
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Branch Office 10 : |
Survey No. 10/1, Bommasandra Village, Attibale Hubli, Anekal Taluka, Bangalore-560099, Karnataka, India |
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Branch Office 11
: |
Plot. No. B-10, Industrial Area-III, Meerut Road, Ghaziabad – 201003, Uttar Pradesh, India |
DIRECTORS
As on : 31.03.2012
|
Name : |
Mr. Prafull Anubhai |
|
Designation : |
Chairman |
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Name : |
Mr. Rajinder Kumar Jain |
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Designation : |
Director |
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Date of Birth/Age : |
07.02.1939 |
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Qualification : |
Chartered Mechanical Engineer, London |
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Name : |
Mrs. Ramni Nirula |
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Designation : |
Director |
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Date of Birth/Age : |
27.05.1952 |
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Qualification : |
M.B.A. |
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Other Directorship : |
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Name : |
Mr. Rajeev Gupta |
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Designation : |
Director |
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Name : |
Mr. Mukund Choudhary |
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Designation : |
Director |
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Name : |
Mr. Sanjeev Pahwa |
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Designation : |
Director |
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Name : |
Mrs. Suchita Jain |
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Designation : |
Director |
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Name : |
Mr. B. K. Choudhary |
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Designation : |
Director |
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Name : |
Mr. Sachit Jain |
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Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. Naresh Bansal |
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Designation : |
General Manager |
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Name : |
Ms. Tanu Berry |
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Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on: 31.03.2013
|
Category of
Shareholders |
No. of Shares |
% of Shareholding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
264007 |
1.42 |
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|
13647402 |
73.55 |
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13911409 |
74.97 |
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Total shareholding of Promoter and Promoter Group (A) |
13911409 |
74.97 |
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(B) Public Shareholding |
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|
876245 |
4.72 |
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|
12224 |
0.07 |
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|
110148 |
0.59 |
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|
61574 |
0.33 |
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|
1060191 |
5.71 |
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|
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|
407727 |
2.20 |
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|
1480637 |
7.98 |
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|
1515069 |
8.17 |
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|
180343 |
0.97 |
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|
174311 |
0.94 |
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|
6032 |
0.03 |
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|
3583776 |
19.31 |
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Total Public shareholding (B) |
4643967 |
25.03 |
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Total (A)+(B) |
18555376 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
18555376 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Billets, Steel bars and rods and Bright bars
of various categories of Special and Alloys steels. |
PRODUCTION STATUS (AS ON 31.03.2012)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Billets |
MT |
100000 |
99893 |
|
Rolled Bars |
MT |
80400 |
-- |
|
Steel Bars |
MT |
-- |
96780 |
Note:
Installed capacity has been certified by the management and not verified by the auditors being a technical matter.
* Including a quantity of 29482 MT processed by others on job basis.
GENERAL INFORMATION
|
No. of Employees : |
800 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.S. Kothari Mehta and Company Chartered Accountants |
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Address : |
Panchkula, Haryana, India |
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Enterprises over
which Key Management Personnel (KMP) is able to exercise significant
influence : |
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CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
|
18555376 |
Equity Shares |
Rs.10/- each |
Rs.185.554
Millions |
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The Aggregate number of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash in the last five years immediately preceding the Balance Sheet date is NIL.
Equity Shares calls unpaid by directors and officers of the Company is NIL.
Shares held by ultimate holding Company/ holding Company and their subsidiaries/ associates.
Details of
shareholders holding more than 5% shares of the Company
|
|
As at 31st March, 2012 |
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Particulars |
Number of shares |
% holding in the class |
|
Equity shares of Rs. 10/-each fully paid up held by |
|
|
|
Vardhman Textiles Limited. |
5825000 |
31.39 |
|
Vardhman Holdings Limited |
3080517 |
16.60 |
|
Adinath Investment and Trading Company |
2522655 |
13.60 |
|
Devakar Investment and Trading Company Private Limited |
1108175 |
5.97 |
|
Total |
12536347 |
67.56 |
Note: The Steel Business undertaking namely ‘Vardhman Special Steels’ was a unit of M/s.Vardhman Textiles Limited (VTXL) till 31.12.2010, and consequent to the Order of the Hon’ble High court of Punjab and Haryana dated 12.01.2011, said undertaking was demerged from Vardhman Textiles Limited. and got vested in the Company from the appointed date i.e. 01.01.2011. As a result, accounting treatment was given to assets and liabilities of the said undertaking based on the scheme of Arrangement and Demerger approved by the Hon’ble High Court. In consideration of the assets, liabilities and reserves being vested in Vardman Special Steel Limited (VSSL), VSSL issued 1,27,30,376 equity shares of Rs 10/- each credited as fully paid-up to the shareholders of VTXL in proportion of 1 share of VSSL for every 5 shares of Vardhman Textiles Limited (VTXL) held by Shareholders during the year.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
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|
1] Share Capital |
|
185.554 |
58.250 |
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2] Share Application Money |
|
0.000 |
0.000 |
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|
3] Reserves & Surplus |
|
1717.699 |
1458.688 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
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5] Equity Share Capital pending allotment pursuant to the |
|
0.000 |
127.304 |
|
|
NETWORTH |
|
1903.253 |
1644.242 |
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LOAN FUNDS |
|
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|
1] Secured Loans |
|
1784.558 |
269.705 |
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2] Unsecured Loans |
|
657.366 |
320.200 |
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|
TOTAL BORROWING |
|
2441.924 |
589.905 |
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|
DEFERRED TAX LIABILITIES |
|
41.255 |
41.354 |
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|
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|
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TOTAL |
|
4386.432 |
2275.501 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
430.612 |
321.628 |
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Capital work-in-progress |
|
85.809 |
1.014 |
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|
|
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INVESTMENT |
|
992.500 |
200.000 |
|
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
958.289 |
979.825 |
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|
Sundry Debtors |
|
1057.595 |
896.957 |
|
|
Cash & Bank Balances |
|
871.126 |
52.853 |
|
|
Other Current Assets |
|
22.584 |
1.014 |
|
|
Loans & Advances |
|
290.564 |
116.792 |
|
Total
Current Assets |
|
3200.158 |
2047.441 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
108.862 |
126.446 |
|
|
Other Current Liabilities |
|
185.914 |
150.061 |
|
|
Provisions |
|
27.871 |
18.075 |
|
Total
Current Liabilities |
|
322.647 |
294.582 |
|
|
Net Current Assets |
|
2877.511 |
1752.859 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
4386.432 |
2275.501 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
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Revenue from operations |
|
5269.003 |
1130.566 |
|
|
|
Other Income |
|
23.024 |
1.814 |
|
|
|
TOTAL (A) |
|
5292.027 |
1132.380 |
|
|
|
|
|
|
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|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
|
3057.303 |
714.770 |
|
|
|
Changes in inventories of finished goods, work in progress and stock-in-trade |
|
(17.135) |
(82.274) |
|
|
|
Employee benefit expense |
|
152.552 |
34.928 |
|
|
|
Other expenses |
|
1552.600 |
332.416 |
|
|
|
Excise Duty on change in Stocks |
|
24.641 |
5.316 |
|
|
|
TOTAL (B) |
|
4769.961 |
1005.156 |
|
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|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
522.066 |
127.224 |
|
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
|
65.980 |
10.428 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
456.086 |
116.796 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
|
40.592 |
9.531 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
415.494 |
107.265 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
156.483 |
77.639 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
|
259.011 |
29.626 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
|
95.845 |
17.252 |
|
|
TOTAL EARNINGS |
|
95.845 |
17.252 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
720.320 |
176.213 |
|
|
|
Stores & Spares |
|
40.767 |
14.861 |
|
|
|
Capital Goods |
|
15.814 |
2.701 |
|
|
TOTAL IMPORTS |
|
776.901 |
193.775 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
14.15 |
11.95 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Net Sales |
1284.500 |
1092.900 |
1075.400 |
1057.100 |
|
Total Expenditure |
1187.900 |
1073.600 |
1029.400 |
973.000 |
|
PBIDT (Excl OI) |
96.600 |
19.300 |
46.000 |
84.100 |
|
Other Income |
20.200 |
0.000 |
0.000 |
4.300 |
|
Operating Profit |
116.800 |
19.300 |
46.000 |
88.400 |
|
Interest |
25.600 |
21.600 |
21.300 |
36.300 |
|
Exceptional Items |
(41.800) |
0.000 |
0.000 |
0.000 |
|
PBDT |
49.400 |
(02.300) |
24.700 |
52.100 |
|
Depreciation |
10.000 |
10.100 |
10.100 |
9.600 |
|
Profit Before Tax |
39.400 |
(12.400) |
14.600 |
42.500 |
|
Tax |
13.500 |
0.000 |
6.500 |
15.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
25.900 |
(12.400) |
8.100 |
27.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
25.900 |
(12.400) |
8.100 |
27.100 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
|
4.89 |
2.62 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
7.89 |
9.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
11.44 |
4.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.22 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
|
1.28 |
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
9.92 |
6.95 |
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last two years |
Yes |
|
12] |
Profitability for last two 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 |
FINANCIAL ANALYSIS
AND REVIEW OF OPERATIONS
PRODUCTION AND SALES
REVIEW:
During the year, the operating income of the Company is Rs. 5811.900 Millions as compared to Rs. 1245.100 Millions in the previous period. The Production of steel bars has increased from 24,154 MT to 96,780 MT. The exports for the year ended were Rs. 96.300 Millions as compared to Rs. 18.000 Millions in the previous period.
PROFITABILITY:
The Company earned profit before depreciation, interest and tax of Rs. 522.100 Millions as against Rs. 127.200 Millions in the previous period. After providing for depreciation of Rs. 40.600 Millions, interest of Rs. 66.000 Millions, provision for current tax Rs. 156.600 Millions, deferred tax (net of adjustments) Rs. (0.100) Millions, the net profit from operations worked out to be Rs. 259.000 Millions as compared to Rs. 69.600 Millions in the previous period.
UNSECURED LOAN:
(Rs in Millions)
|
Particulars |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
SHORT-TERM
BORROWINGS |
|
|
|
From Related
parties |
|
|
|
Vardhman Textiles Limited |
298.105 |
0.000 |
|
Vardhman Acrylics Limited |
359.261 |
320.200 |
|
Total |
657.366 |
320.200 |
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
BUSINESS REVIEW:
Global Perspective
Globally, the Steel industry is witnessing revolutionary changes due to fierce competitive pressures on performance, productivity, price reduction and customer satisfaction. Trade in steel products of different grades and specialty has been on an upswing with the increase in production facilities coupled with technological innovations in both the developed and developing countries. However, sagging prices in the backdrop of economic slowdown have spelt turmoil in the steel industry, the world over. The future is uncertain, but challenging and holds great promise if the right steps are taken because of the inherent qualities of steel.
Indian Outlook
India is among the top producers of all forms of steel in the world and is one of the fastest growing markets for steel. The Indian steel industry comprises of the producers of finished steel, semi-finished steel, stainless steel and pig iron.
The total demand for steel in FY 2011-12 grew to 65.2 MT against 46.8 MT in FY 07. The demand expanded at a CAGR of 8.6 per cent over a period from FY 07-11. The future growth of Indian Steel industry will largely depend upon the Government measures of injecting funds in various industries such as construction, infrastructure, automobile and power to boost economic growth.
Company’s’ Business
Strategy
The Company has started the implementation of its Rolling Mill upgradation project with an investment of around Rs.1300.000 Millions. Almost all the equipments have been ordered and it is expected to be completed by March-April 2013. With this project, the Company will be able to increase production, improve quality, reduce costs and improve customer satisfaction by reducing changeover time as well as adding to the product range. To part finance this project, the Company has raised an External Commercial Borrowing (ECB) of USD 16.66 million. The Management has decided to leave this amount unhedged for the time being. The cost of ECB even after taking into account the depreciation of the rupee will be lower than a rupee term loan as long as the USD remains lower than Rs. 700.000 Millions at the time of repayment of ECB.
The renewed focus on product development continues, along with increased efforts on training and HR practices.
The Company follows a LVCQSA strategy - Low Volume Critical Quality Special Application which gives it an advantage of less competition from mass players and increased loyalty from customers seeking stringent quality.
Company’s Future
Outlook:
As the Country is witnessing the slow down in growth, the automobile industry has slowed down. This is having a
serious impact on business sentiments for alloy steels also. As a result, this year the volume will be under stress as also margins. In addition, there will be plant shutdowns which has to be taken for the Project. This will have an impact even on margins. The Company hopes to recover its performance from the year 2013-14 onwards.
FIXED ASSETS:
- Buildings
- Plant and machinery
- Furniture and fixtures
- Vehicles
- Office equipment
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.54.92 |
|
|
1 |
Rs.84.44 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
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 |
8 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
57 |
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.