MIRA INFORM REPORT

 

 

Report Date :

12.02.2014

 

IDENTIFICATION DETAILS

 

Name :

ARCOY INDUSTRIES (INDIA) PRIVATE LIMITED

 

 

Registered Office :

606, Abhijit Buildings, Mithakhali Six Road, Ahmedabad – 380006, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

04.07.1968

 

 

Com. Reg. No.:

04-001520

 

 

Capital Investment / Paid-up Capital :

Rs.9.800 Millions

 

 

CIN No.:

[Company Identification No.]

U26941GJ1968PTC001520

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Chemical, Copper Plants, Dyes and Intermediates, Pulp and Paper etc.

 

 

No. of Employees :

300 (Approximately)

 


 

RATING & COMMENTS

 

MIRA’s Rating :

B (32)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1190000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

Profitability of the company appears to be low.

 

However, trade relations are fair. Business is active. Payment terms are slow but correct.

 

The company can be considered for business dealings with some caution.

 

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

 

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

 

 

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 PARTED BY

 

Name :

Mr. Kalpesh Tiwari

Designation :

Export Manager

Contact No.:

91-79-40275300

Date :

10.02.2014

 

 

LOCATIONS

 

Registered / Head Office :

606, Abhijit Buildings, Mithakhali Six Road, Ahmedabad – 380006, Gujarat, India

Tel. No. :

91-79-40275300 / 26425300

Fax No. :

91-79-40273324 / 26561331

E-Mail :

jindagi@gkcco.com

arcoy@arcoy.com

contact@arcoy.com

Website :

www.arcoy.com

 

 

Regional Office :

No. 168/1, G/F Golden Jublee Flats, Padi Kuppam Road, Anna Nagar (West), Chennai - 600 040, Tamilnadu, India

Tel. No.:

91-44-26157638

E-Mail :

arcoy_chn@bsnl.in

 

 

Factory :

44/45, Phase-I, GIDC, Vatva, Ahmedabad, Gujarat, India

 

 

DIRECTORS

 

As on 30.09.2013

 

Name :

Mr. Aditya Harinbhai Chokshi

Designation :

Director

Address :

Shrihari, Opposite Polythechnic, Ambawadi, Ahmedabad – 380015, Gujarat, India

Date of Appointment :

01.04.1995

DIN No. :

00028278

 

 

Name :

Mr. Harin Ambalal Chokshi

Designation :

Director

Address :

Shrihari, Opposite Polythechnic, Ambawadi, Ahmedabad – 380015, Gujarat, India

Date of Appointment :

04.07.1968

DIN No. :

00028322

 

 

Name :

Monal Dineshbhai Choksi

Designation :

Director

Address :

Nishant, Opposite Polythechnic, Ambawadi, Ahmedabad – 380015, Gujarat, India

Date of Appointment :

05.01.1990

DIN No. :

00028364

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2013

 

Names of Shareholders

No. of Shares

Harinbhai Ambalal Choksi

9282

Shreedeviben Harinbhai Choksi

9500

Adityabhai Harinbhai Choksi                                                                               

9500

Yaminiben Adityabhai Choksl

9090

Vandanaben Dineshbhai Choksi

9500

Monalbhai Dineshbhai Choksi

9500

Beenaben Monalbhai Choksi

9090

Haribhai A Choksl HUF

9495

Pranjaliben Anandbhai Shah

9444

Dineshbhai A. Choksi HUF

9500

Arcoy Services Private Limited

4000

Asmitaben Himanshubhai Patel

10

Kantaben Kanaiyalal Patel

10

Monika Himanshu Patel

10

Padmakant Kanaiyalal Shah

10

Aditiben Harin Choksi

49

Himanshubhai K Shah

10

 

 

Total

98000

 


As on 30.09.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Bodies corporate

4.00

Directors or relatives of Directors

96.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Chemical, Copper Plants, Dyes and Intermediates, Pulp and Paper etc.

 

 

Exports :

 

Products :

¨       Chemical

¨       Copper Plants

¨       Dyes and Intermediates

¨       Pulp and Paper

Countries :

¨       South Africa

¨       Jordan

¨       UAE

 

 

Imports :

 

Products :

Raw Material

Countries :

¨       China

¨       Netherland

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

300 (Approximately)

 

 

Bankers :

¨       The Kalupur Comm. Co-Operative Bank Limited Kalupur Bhavan, Near Income Tax, Ahmedabad - 380009, Gujarat, India

¨       State Bank Of India - Lead Bank Mid Corporate Group, Industrial Finance Branch, Marble Arch, Race Course Circle, Vadodara - 390007, Gujarat, India

¨       The Karur Vysya Bank Limited, Motilal Centre, Ashram Road, Ahmedabad – 380009, Gujarat, India

¨       Nutan Nagarik Sahakari Bank Limited, Central Office, Near Samarthewshwar Mahadev, Law Garden, Ellisbridge, Ahmedabad – 380006, Gujarat, India

 

 

Facilities :

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

From Bank

 

 

Term loan

5.051

9.079

Vehicle Loan

0.000

1.218

 

 

 

SHORT TERM BORROWINGS

 

 

Working capital loans

250.985

284.853

 

 

 

Total

256.036

295.150

 

Banking Relations :

--

 

 

Auditors :

 

Name :

G. K Choksi and Company

Chartered Accountants

Address :

Madhuban, Near Madalpur Underbridge, Ellisbridge, Ahmedabad – 380006, Gujarat, India

Tel. No. :

91-79-30012009

Mobile No. :

91-9925174555 - 56

Fax No. :

91-79-26569929

E-Mail :

info@gkcco.com

PAN No. :

AAAFG7623H

 

 

Enterprises over which key managerial personnel and their relatives exercise significant influence :

¨       Venketeshwar Corporation

¨       Arcoy India Private Limited (Formerly known as Arcoy Services Private Limited)

¨       Ambalal Ranchoddas Choksi Private Limited

¨       Pratishtah Estate Dev. Private Limited

¨       Coex Packaging (I) Private Limited

¨       Orbit Enterprise

¨       Tirupati Corporation

¨       Sapphire Agency

¨       Orion Appliances Private Limited

¨       Arcoy Biorefinery Private Limited

 


 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000

Equity Shares

Rs.100/- each

Rs.10.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

98000

Equity Shares

Rs.100/- each

Rs.9.800 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

9.800

9.800

5.500

(b) Reserves & Surplus

287.789

288.214

36.396

(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)

297.589

298.014

41.896

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

5.051

10.297

15.403

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

5.051

10.297

15.403

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

317.450

352.783

312.105

(b) Trade payables

94.816

61.493

63.902

(c) Other current liabilities

32.047

40.512

62.977

(d) Short-term provisions

0.000

0.000

0.000

Total Current Liabilities (4)

444.313

454.788

438.984

 

 

 

 

TOTAL

746.953

763.099

496.283

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

227.191

228.073

21.453

(ii) Intangible Assets

0.021

0.000

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

67.719

67.723

67.723

(c) Deferred tax assets (net)

0.912

0.376

0.029

(d)  Long-term Loan and Advances

1.133

1.755

1.946

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

296.976

297.927

91.151

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

52.023

70.564

76.400

(c) Trade receivables

155.381

152.671

110.428

(d) Cash and cash equivalents

22.843

20.691

23.482

(e) Short-term loans and advances

211.375

191.745

192.385

(f) Other current assets

8.355

29.501

2.437

Total Current Assets

449.977

465.172

405.132

 

 

 

 

TOTAL

746.953

763.099

496.283

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

 

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

508.966

302.501

283.388

 

 

Other Income

18.152

14.053

12.322

 

 

TOTAL                                    

527.118

316.554

295.710

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of material consumed

162.893

96.535

66.930

 

 

Other operating expenses

134.646

125.643

127.410

 

 

Purchase of stock in trade

49.740

32.267

39.592

 

 

Changes in inventories

17.613

(43.091)

(37.721)

 

 

Employee benefit expenses

24.034

19.969

18.868

 

 

Other expenses

87.273

25.672

37.159

 

 

TOTAL                                    

476.199

256.995

252.238

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

50.919

59.559

43.472

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

45.298

52.256

32.238

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

5.621

7.303

11.234

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

3.890

4.482

5.429

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

1.731

2.821

5.805

 

 

 

 

 

Less

TAX                                                                 

1.265

2.054

3.035

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

0.466

0.767

2.770

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

36.933

36.166

33.396

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

37.473

36.933

36.166

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods (FOB Basis)

293.810

67.689

136.934

 

TOTAL EARNINGS

293.810

67.689

136.934

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

14.928

Nil

3.203

 

TOTAL IMPORTS

14.928

Nil

3.203

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

4.75

7.83

50.37

 

 

Expected Sales (2013-2014): Rs.800.000 Millions

 

The above information has been parted by Mr. Kalpesh Tiwari

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

0.09

0.24

0.94

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.34

0.93

2.05

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.25

0.40

1.35

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.01

0.01

0.14

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.08

1.22

7.82

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.01

1.2

0.92

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG TERM DEBTS

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

Current maturities of long term debts

4.001

5.821

NA

 

 

 

 

Total

4.001

5.821

NA

 

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

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

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

No

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 LOANS

 

PARTICULAR

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

SHORT TERM BORROWINGS

 

 

Inter corporate deposits

4.169

20.745

From shareholders, directors and their relatives 

62.296

47.185

 

 

 

Total

66.465

67.930

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10344343

12/03/2012

444,500,000.00

The Kalupur Comm. Co. Op Bank Ltd.

Kalupur Bhavan, Nr. Income Tax, Ahmedabad, Gujarat - 380009, INDIA

B35841907

2

10341375

13/02/2012

50,000,000.00

THE KALUPUR COM CO-OPERATIVE BANK LIMITED

KALUPUR BANK BHAVAN, NR. INCOMETAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380009, INDIA

B34614453

3

10322552

03/11/2011

20,000,000.00

THE KALUPUR COMMERCIAL CO-OPERATIVE BANK LTD.

KALUPUR BANK BHAVAN, NR. INCOME TAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380009, INDIA

B27645670

4

10224717

15/06/2010

50,000,000.00

THE KALUPUR COMMERCIAL CO.OP. BANK LTD.

KALUPUR BANK BHAVAN, INCOME TAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380013, INDIA

A87948121

5

10197897

08/01/2010

80,000,000.00

THE KALUPUR COMMERCIAL CO OPERATIVE BANK LIMITED

KALUPUR BANK BHAVAN NR. INCOME TAX CIRCLE, ASHRAM
ROAD, AHMEDABAD, Gujarat - 380013, INDIA

A77582344

6

10154012

16/04/2009

7,500,000.00

THE KALUPUR COMMERCIAL CO.OPERATIVE BANK LTD.

"KALUPUR BANK BHAVAN", NR. INCOME TAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380006, INDIA

A60876125

7

10154014

16/04/2009

7,500,000.00

THE KALUPUR COMMERCIAL CO.OPERATIVE BANK LTD.

"KALUPUR BANK BHAVAN", NR. INCOME TAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380006, INDIA

A60876661

8

10126614

22/12/2009 *

610,000,000.00

STATE BANK OF INDIA - LEAD BANK

MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE, VADODARA, Gujarat -
390007, INDIA

A76172444

9

10068076

06/08/2007

10,000,000.00

THE KALUPUR COMMERCIAL CO.OPERATIVE BANK LTD

"KALUPUR BANK BHAVAN", NR. INCOME TAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380006, INDIA

A23384654

10

10068079

06/08/2007

10,000,000.00

THE KALUPUR COMMERCIAL CO.OPERATIVE BANK LTD

"KALUPUR BANK BHAVAN", NR. INCOME TAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380006, INDIA

A23406366

11

10003246

06/06/2008 *

17,000,000.00

THE KALUPUR COMMERCIAL CO.OP. BANK LTD.

"KALUPUR BANK BHAVAN", NR. INCOME TAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380006, INDIA

A42209809

12

90108056

29/06/2004

8,000,000.00

THE KALUPUR COMMERCIAL CO.OP. BANK LTD.

"KALUPUR BANK BHAVAN", NR. INCOME TAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380006, INDIA

-

13

80002899

29/04/2006 *

4,000,000.00

THE KALUPUR COMMERCIAL CO. OPERATIVE BANK LTD.

"KALUPUR BANK BHAVAN", NR. INCOME TAX CIRCLE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380006, INDIA

-

14

80002902

28/07/2003

2,000,000.00

THE KALUPUR COMML COOP BANK LTD

ASHRAM ROAD, AHMEDABAD, Gujarat - 380009, INDIA

-

15

90108983

19/03/1993

300,000.00

THE KALUPUR COMM. CO-OP BANK LTD.

415 CHOKHA BAZAR KALUPUR, AHMEDABAD, Gujarat - 380002, INDIA

-

 

* Date of charge modification

 

 


FIXED ASSETS

 

v      Leasehold Land

v      Building

v      Plant and Machinery

v      Office Equipment

v      Furniture and Fixture

v      Computer

v      Vehicles

v      Software 


 

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.62.44

UK Pound

1

Rs.102.48

Euro

1

Rs.85.28

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

ANK

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

32

 

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.