MIRA INFORM REPORT

 

 

Report Date :

01.09.2014

 

IDENTIFICATION DETAILS

 

Name :

LALWANI FERRO ALLOYS LIMITED

 

 

Registered Office :

Om Tower, 2nd Floor, Suite No. 205, 32, Jawaharlal Nehru Road, Kolkata – 700071, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

27.11.1986

 

 

Com. Reg. No.:

21-041548

 

 

Capital Investment / Paid-up Capital :

Rs. 57.260 Millions

 

 

CIN No.:

[Company Identification No.]

U51909WB1986PLC041548

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALL00513C

 

 

PAN No.:

[Permanent Account No.]

AAACL4482G

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Trader of Ferro Alloys

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (51)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track.

 

Financial position of the company seems to be decent.

 

Trade relations are fair. Business is active. Payment terms are usually correct.

 

The company can be considered normal 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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

N E W S

 

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

 

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

 

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

 

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Bank Facilities = BBB-

Rating Explanation

Have moderate degree of safety and carry moderate credit risk

Date

29.10.2013

 

Rating Agency Name

CARE

Rating

Short Term Bank Facilities = A3

Rating Explanation

Have moderate degree of safety and carry higher credit risk

Date

29.10.2013

 

 

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 31-03-2014.

 

 

INFORMATION PARTED BY

 

Name :

Shikha Jajoo

Designation :

Finance manager

Contact No.:

91- 33-22263680

Date :

28.08.2014

 

 

LOCATIONS

 

Registered Office :

Om Tower, 2nd Floor, Suite No. 205, 32, Jawaharlal Nehru Road, Kolkata – 700071, West Bengal, India

Tel. No.:

91-33-22263680 / 81 / 22263753

Fax No.:

91-22263754

E-Mail :

lalwanical2@hotmail.com

Website :

http://www.lalwanifeerroalloys.com

Location :

Rented

 

 

Factory 1 :

Plasto Steel Park, Ghut Road, Gore Aps, Baxayora Hankura (West Bangal)

 

 

Factory 2 :

Mouza Jarura And Pyara Danga Ps, Polba, West Bengal

 

 

DIRECTORS

 

As on: 30.09.2013

 

Name :

Mr. Kamal Kishore Lalwani

Designation :

Director

Address :

47A, Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

26.01.1954

Date of Appointment :

27.11.1986

DIN No.:

00064724

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U51909WB1986PLC041548

LALWANI FERRO ALLOYS LTD

Director

27/11/1986

27/11/1986

-

Active

NO

2

U51109WB1994PTC063147

LALWANI METALLICS PVT.LTD.

Director

09/05/1994

09/05/1994

-

Active

NO

3

L65999WB1995PLC067302

APEX CAPITAL MARKETS LTD.

Managing director

01/04/2013

11/01/1995

-

Active

NO

4

U27109WB1995PLC073771

LALWANI INDUSTRIES LTD.

Director

25/08/1995

25/08/1995

-

Active

NO

5

U65993WB1995PLC068269

LAL WANI CAPITAL MARKETS LTD.

Director

23/06/1999

23/06/1999

-

Active

NO

 

 

Name :

Mr. Snehlata lalwani

Designation :

Director

Address :

47A, Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

15.12.1960

Date of Appointment :

27.11.1986

DIN No.:

00064649

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U51909WB1986PLC041548

LALWANI FERRO ALLOYS LTD

Director

27/11/1986

27/11/1986

-

Active

NO

2

U51109WB1994PTC063147

LALWANI METALLICS PVT.LTD.

Director

09/05/1994

09/05/1994

-

Active

NO

3

L65999WB1995PLC067302

APEX CAPITAL MARKETS LTD.

Director

11/01/1995

11/01/1995

-

Active

NO

4

U27109WB1995PLC073771

LALWANI INDUSTRIES LTD.

Director

25/08/1995

25/08/1995

-

Active

NO

5

U65993WB1995PLC068269

LAL WANI CAPITAL MARKETS LTD.

Director

23/06/1999

23/06/1999

-

Active

NO

 

 

Name :

Mr. Sandeep lalwani

Designation :

Managing Director

Address :

47A, Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

05.12.1981

Date of Appointment :

25.10.2012

DIN No.:

00064318

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U65993WB1995PLC068269

LAL WANI CAPITAL MARKETS LTD.

Director

01/06/2000

01/06/2000

-

Active

NO

2

U27109WB1995PLC073771

LALWANI INDUSTRIES LTD.

Director

01/12/2000

01/12/2000

-

Active

NO

3

U51909WB1986PLC041548

LALWANI FERRO ALLOYS LTD

Managing director

25/10/2012

01/12/2000

-

Active

NO

4

U51109WB1994PTC063147

LALWANI METALLICS PVT.LTD.

Director

23/05/2005

23/05/2005

-

Active

NO

5

U51909WB2011PTC163357

GAYATRI COMMODEAL PRIVATE LIMITED

Director

23/10/2012

23/10/2012

-

Active

NO

 

 

Name :

Ms. Ruchi lalwani

Designation :

Director

Address :

47A, Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

13.03.1982

Date of Appointment :

30.09.2008

DIN No.:

01943518

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 30.09.2013

 

SHAREHOLDING LIST ATTACHED

 

Equity Share Break up (Percentage of Total Equity)

 

 

As on: 30.09.2013

 

Category

 

Percentage

 

 

 

Bodies corporate

 

71.09

Directors or relatives of directors

 

25.47

Others

 

3.44

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Ferro Alloys

 

 

Products :

·         Ferrovanadium

·         Nikel

·         Ferrochrome

·         Ferrosilicon

·         Ferromolybdenum

 

 

Exports :

 

Products :

·         Ferrovanadium

·         Nikel

·         Ferrochrome

·         Ferrosilicon

·         Ferromolybdenum

Countries :

·         Japan

·         Taiwan

 

 

Imports :

 

Products :

·         Raw Material

·         Nickel Plate

Countries :

·         South Africa

·         South Korea

·         Singapore

 

 

Terms :

 

Selling :

Cash, Cheque and Credit (30 Days0

 

 

Purchasing :

Cash, Cheque and Credit (30 Days0

 

GENERAL INFORMATION

 

Customers :

Wholesalers, Retailers and End Users

 

 

No. of Employees :

100 (Approximately)

 

 

Bankers :

·         State Bank Of India, IFB (Branch), 11, Dr. U. N. Brahmachari Street, Kolkata – 700017, West Bengal, India

·         UCO Bank, MID Corporate Unit (IBB), 4 And 4/1, Red Cross Place, Kolkata  - 700001, West Bengal, India

·         Bank of Baroda

·         ICICI Bank, 3a Gurusaday Road, Kolkata – 700019, West Bengal, India

·         State Bank of Travancore

 

 

Facilities :

 

Secured Loan

As on

31.03.2013

As on

31.03.2012

 

(Rs. In Millions)

LONG TERM BORROWINGS:

 

 

Rupee term loans from banks

66.400

119.750

Other loans and advances

2.141

2.126

SHORT TERM BORROWINGS:

 

 

Rupee term loans from banks

35.613

132.830

Working capital loans from banks

329.768

205.320

Total

433.922

460.026

 

 

 

Banking Relations :

--

 

 

Financial institutions :

Tata Capital Financial Services Limited, One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai – 400001, Maharashtra, India

 

 

Auditors :

 

Name :

Rustagi and Company

Chartered Accountants

Address :

19, R N Mukherjee Road, Eastern Building, 1st Floor, Kolkata – 700001, West Bengal, India

PAN No.:

AAUFS1566M

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorized Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

5730000

Equity Shares

Rs.10/- each

Rs. 57.300 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

5726000

Equity Shares

Rs.10/- each

Rs. 57.260 Millions

 

 

 

 

 

 

 

 

FINANCIAL DATA

[All figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

57.260

57.260

47.260

(b) Reserves & Surplus

454.561

362.401

254.344

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

511.821

419.661

301.604

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

160.966

220.654

230.416

(b) Deferred tax liabilities (Net)

59.865

50.664

33.553

(c) Other long term liabilities

2.239

5.091

13.732

(d) long-term provisions

0.873

0.407

0.232

Total Non-current Liabilities (3)

223.943

276.816

277.933

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

365.381

338.150

342.274

(b) Trade payables

395.217

236.066

180.518

(c) Other current liabilities

58.276

70.906

70.325

(d) Short-term provisions

19.100

11.629

4.315

Total Current Liabilities (4)

837.974

656.751

597.432

 

 

 

 

TOTAL

1573.738

1353.228

1176.969

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

524.963

528.428

329.689

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

9.131

0.000

86.736

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1.670

1.670

1.670

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d) Long-term Loan and Advances

0.619

0.727

32.784

(e) Other Non-current assets

0.032

0.057

0.062

Total Non-Current Assets

536.415

530.882

450.941

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

497.525

291.199

392.907

(c) Trade receivables

256.429

222.280

126.261

(d) Cash and cash equivalents

81.289

98.786

87.664

(e) Short-term loans and advances

119.339

135.714

53.212

(f) Other current assets

82.741

74.367

65.984

Total Current Assets

1037.323

822.346

726.028

 

 

 

 

TOTAL

1573.738

1353.228

1176.969

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

2959.049

2172.073

1280.281

 

 

Other Income

18.010

8.444

15.302

 

 

TOTAL                                     (A)

2977.059

2180.517

1295.583

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

1468.958

1219.841

741.265

 

 

Purchases of Stock-in-Trade

413.829

348.533

173.617

 

 

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

(14.466)

(36.070)

(23.667)

 

 

Employees benefits expense

41.646

22.073

16.892

 

 

Other expenses

800.406

447.166

253.423

 

 

TOTAL (B)

2710.373

2001.543

1161.530

 

 

 

 

 

Less

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

266.686

178.974

134.053

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

97.685

87.540

51.433

 

 

 

 

 

 

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

169.001

91.434

82.620

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

29.996

19.781

18.689

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

139.005

71.653

63.931

 

 

 

 

 

Less

TAX                                                                  (H)

46.846

25.837

8.361

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

92.159

45.816

55.570

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

2254.810

1349.090

NA

 

TOTAL EARNINGS

2254.810

1349.090

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

16.09

9.63

15.25

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

3.10

2.10

4.29

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

4.70

3.30

4.99

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

8.89

5.30

5.87

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.27

0.17

0.21

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.03

1.33

1.90

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.24

1.25

1.22

 

 

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

47.260

57.260

57.260

Reserves & Surplus

254.344

362.401

454.561

Net worth

301.604

419.661

511.821

 

 

 

 

long-term borrowings

230.416

220.654

160.966

Short term borrowings

342.274

338.150

365.381

Total borrowings

572.690

558.804

526.347

Debt/Equity ratio

1.899

1.332

1.028

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

1280.281

2172.073

2959.049

 

 

69.656

36.232

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

1280.281

2172.073

2959.049

Profit

55.570

45.816

92.159

 

4.34%

2.11%

3.11%

 

 

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

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

No

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

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 Loan

 

Particulars

As on

31.03.2013

As on

31.03.2012

 

(Rs. In Millions)

LONG TERM BORROWINGS:

 

 

Loans and advances from related parties

92.425

98.778

Total

92.425

98.778

 

INDEX OF CHARGES:

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10465071

27/11/2013

1,238,400,000.00

UCO BANK (TITLE DEED HOLDER)

INTERNATIONAL BANKING BRANCH, 2, INDIA EXCHANGE PLACE, KOLKATA, WEST BENGAL - 700001, INDIA

B91501973

2

10464380

13/11/2013

1,324,400,000.00

STATE BANK OF INDIA (LEAD BANK)

INDUSTRIAL FINANCE BRANCH, KOLKATA, 11, DR. U. N. BRAHMACHARI STREET, KOLKATA - 700017, WEST BENGAL, INDIA

B91203752

3

10446820

04/09/2013

150,000,000.00

BANK OF BARODA

MID CORPORATE BRANCH, 1/1, CAMAC STREET (1ST FLOOR), KOLKATA - 700016, WEST BENGAL, INDIA

B83919035

4

10446216

26/08/2013

199,000,000.00

ICICI BANK LIMITED

3A,GURUSADAY ROAD, 2ND FLOOR, KOLKATA - 700019, WEST BENGAL, INDIA

B83638916

5

10393186

26/11/2012

105,000,000.00

UCO BANK

INTERNATIONAL BANKING BRANCH, 2, INDIA EXCHANGE PLACE, 1ST FLOOR, KOLKATA - 700001, WEST BENGAL, INDIA

B64597719

6

10366631

30/06/2012

2,655,516.00

TATA CAPITAL FINANCIAL SERVICES LIMITED

ONE FORBES,, DR. V. B. GANDHI MARG, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA

B44217677

7

10322743

03/11/2011

780,000.00

TATA CAPITAL LIMITED

ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI - 400001, MAHARASHTRA, INDIA

B27711803

8

10308845

10/09/2011

1,203,366.00

TATA CAPITAL LIMITED

ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI - 400001, MAHARASHTRA, INDIA

B21962071

9

10111195

19/03/2012 *

963,000,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, KOLKATA, 11, DR. U. N. BRAHMACHARI STREET, KOLKATA - 700017, WEST BENGAL, INDIA

B36718948

10

1008895

13/11/2013 *

72,800,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, KOLKATA, 11, DR. U. N. BRAHMACHARI STREET, KOLKATA - 700017, WEST BENGAL, INDIA

B91205716

 

 

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 judgment or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration:

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited 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.60.47

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

JAY

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

51

 

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.