MIRA INFORM REPORT

 

 

Report Date :

09.01.2014

 

IDENTIFICATION DETAILS

 

Name :

SUMITOMO CHEMICAL INDIA PRIVATE LIMITED

 

 

Registered Office :

Moti Mahal, 7th Floor, 195, Jamshedji Tata Road, Churchgate, Mumbai – 400020, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

15.02.2000

 

 

Com. Reg. No.:

11-124224

 

 

Capital Investment / Paid-up Capital :

Rs. 2329.850 Millions

 

 

CIN No.:

[Company Identification No.]

U24110MH2000PTC124224

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS37630F

 

 

PAN No.:

[Permanent Account No.]

AAECS3750L

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing and Selling of Household Insecticides, Agricultural Pesticides, Public Health Insecticides, Fine Chemicals and Animal Nutrition Products.

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 6538000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. There appears some accumulated losses recorded by the company.

 

However, company has achieved some profit during current year. Therefore some part of accumulated losses has been wiped off.

 

Capital base of the company seems to be strong. Subject gets good support from its holding companies.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be 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

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

 

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. Bharat Malik

Designation :

Senior Manager Finance

Contact No.:

91-22-22892610

Date :

07.01.2014

 

 

LOCATIONS

 

Registered Office :

Moti Mahal, 7th Floor, 195, Jamshedji Tata Road, Churchgate, Mumbai – 400020, Maharashtra, India

Tel. No.:

91-22-22892610-19/ 228292611

Fax No.:

91-22-22892600

E-Mail :

scmarfatia@sumichemindia.com

bharatmalik@sumichemindia.com

Area :

1000 Sq ft

Location :

Leased

 

 

Factory :

C-5/184-185, GIDC, Vapi – 396195, Gujarat, India

Area :

5000 Sq ft

Location :

Leased

 

 

DIRECTORS

 

AS ON 27.09.2013

 

Name :

Mr. Tadahisa Ooka

Designation :

Managing director

Address :

B-182, 18th Floor, Grand Paradi Cooperative Housing Society, Dady Seth Hill, August Kranti, Near Shalimar Hotel, Kemps Corner, Mumbai – 400036, Maharashtra, India

Date of Birth/Age :

13.09.1945

Date of Appointment :

24.05.2010

DIN No.:

03080249

 

 

Name :

Mr. Takaharu Ikeda

Designation :

Managing director

Address :

Trident Hotel, Nariman Point, Mumbai – 400021, Maharashtra, India

Date of Birth/Age :

03.01.1956

Date of Appointment :

27.09.2013

DIN No.:

06594577

 

 

Name :

Mr. Chetan Shantilal Shah

Designation :

Director

Address :

Bhagwati Bhuvan, 5th Floor, 31-B, Carmichael Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

22.07.1954

Date of Appointment :

13.06.2010

PAN No.:

AABPS6839G

DIN No.:

00488127

 

 

Name :

Mr. Rohit Berry

Designation :

Director

Address :

B-605/606, Som Vihar Apartments, R K Puram, New Delhi - 110022, India

Date of Birth/Age :

25.08.1970

Date of Appointment :

05.10.2009

DIN No.:

00453642

 

 

Name :

Mr. Keiichi Sakata

Designation :

Director

Address :

2-10-16, Sakuragaoka, Setagaya-Ku, Tokyo - 156 0054 Japan

Date of Birth/Age :

22.10.1959

Date of Appointment :

21.05.2009

DIN No.:

02662456

 

 

Name :

Mr. Prannath Khairati Arora

Designation :

Whole-time director

Address :

House No. 901, Tower No. 8, uniworls Garden Sohna Road, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

11.09.1967

Date of Appointment :

27.09.2013

DIN No.:

02818728

 

 

Name :

Mr. Hideo Wada

Designation :

Director

Address :

Kamakura-Shi, Kanagawa, 2470061-Japan

Date of Birth/Age :

24.03.1962

Date of Appointment :

10.01.2011

DIN No.:

03373574

 

 

Name :

Mr. Masahiko Hirano

Designation :

Director

Address :

Kitakata 3-2-16-202, Ichikawa, Chiba, Japan

Date of Birth/Age :

07.01.1966

Date of Appointment :

27.09.2013

DIN No.:

06594601

 

 

KEY EXECUTIVES

 

Name :

Mr. Bharat Malik

Designation :

Senior Manager Finance

 

 

Name :

Mr. Viral Ghanshyambhai Somani

Designation :

Secretary

Address :

Flat No. 504, Building No.2, Labh Krupa Cooperative Housing Society, Navagaon, Dahisar (West), Mumbai – 400068, Maharashtra, India

Date of Birth/Age :

22.03.1980

Date of Appointment :

28.09.2012

PAN No.:

AURPS4425J

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 27.09.2013

 

Names of Shareholders

 

No. of Shares

 

Sumika Life Tech Limited, Japan

 

2

Sumitomo Chemical Company Limited, Japan

 

218484519

Chetan Shantilal Shah

 

14500000

 

 

 

Total

 

 

232984521

 

 

AS ON 27.09.2013

 

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]

93.80

Directors or relatives of directors

6.20

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Selling of Household Insecticides, Agricultural Pesticides, Public Health Insecticides, Fine Chemicals and Animal Nutrition Products.

 

 

Exports :

 

Products :

Finished Goods

Countries :

·         Japan

Belgium

Singapore

 

 

Imports :

 

Products :

Raw Material

Countries :

·         USA

Japan

Singapore

Vietnam 

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Suppliers :

Crystal Phosphates Limited

 

 

Customers :

End Users

 

·         Godrej Sara Lee Limited

 

 

No. of Employees :

500 (Approximately)

 

 

Bankers :

·         Standard Chartered Bank

Fort Branch, Mumbai, Maharashtra, India

 

·         Citi Bank

Fort Branch, Mumbai, Maharashtra, India

 

·         Mizuho Corporate Bank, Limited

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B S R and Company

Chartered Accountants

Address :

1st Floor, Lodha Excelus, Apollo Mills Compound, N M Joshi Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AAAFB9852F

 

 

Holding company :

Sumitomo Chemical Company Limited, Japan

 

 

Fellow Subsidiaries :

·         Valent Biosciences Corporation, USA

Sumitomo Chemical Singapore Pte. Limited

SCA South Asia Petrochemicals Private Limited [U24231DL2009FTC189533]

Sumitomo Chemical Australia Pty Limited

Sumitomo Chemical (U.K) Plc

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

250,000,000

Equity Shares

Rs. 10/- each

Rs. 2500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

232,984,521

Equity Shares

Rs. 10/- each

Rs. 2329.850 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

2329.850

2329.850

1362.310

(b) Reserves & Surplus

(695.300)

(823.100)

(716.180)

(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)

1634.550

1506.750

646.130

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(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

5.270

2.490

1.950

Total Non-current Liabilities (3)

5.270

2.490

1.950

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

10.480

0.000

519.500

(b) Trade payables

1607.720

1821.230

494.310

(c) Other current liabilities

385.940

253.170

186.340

(d) Short-term provisions

22.780

7.810

2.150

Total Current Liabilities (4)

2026.920

2082.210

1202.300

 

 

 

 

TOTAL

3666.740

3591.450

1850.380

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

450.980

498.260

64.610

(ii) Intangible Assets

27.100

33.890

39.290

(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

0.380

0.380

0.360

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

141.130

100.480

16.480

(e) Other Non-current assets

0.060

0.040

0.000

Total Non-Current Assets

619.650

633.050

120.740

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1337.420

1130.150

580.220

(c) Trade receivables

1302.580

1294.200

866.900

(d) Cash and cash equivalents

183.270

353.490

63.910

(e) Short-term loans and advances

223.710

177.330

218.610

(f) Other current assets

0.110

3.230

0.000

Total Current Assets

3047.090

2958.400

1729.640

 

 

 

 

TOTAL

3666.740

3591.450

1850.380

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

4945.820

4506.590

2292.960

 

 

Other Income

26.800

13.960

9.650

 

 

TOTAL                                    

4972.620

4520.550

2302.610

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

4844.820

4627.470

2499.770

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

127.800

(106.920)

(197.160)

 

 

 

 

 

Less

TAX                                                                 

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX

127.800

(106.920)

(197.160)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB value of exports

1039.960

769.520

475.500

 

 

Service and commission income

16.780

7.290

8.650

 

TOTAL EARNINGS

1056.740

776.810

484.150

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

0.55

(0.46)

(1.45)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

2.57

(2.37)

(8.56)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

2.58

(2.37)

(8.60)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.49

(2.98)

(10.66)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.08

(0.07)

(0.31)

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.01

0.00

0.80

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.50

1.42

1.44

 

 

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

Yes

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

Yes

17]

Major suppliers

Yes

18]

Major customers

Yes

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

Yes

33]

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

No

34]

External Agency Rating, if available

No

 

 

CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

90141728

20/02/1992

2,000,000.00

UNION BANK OF INDIA

66/80; B.S. MARG BRANCH, BOMBAY - 400023, MAHARASHTRA, INDIA

-

2

90141726

19/02/1992

1,275,000.00

THE MAHARASHTRA STATE FINANCIAL CORPORATION

NEW EXCELSIOR BUILDING, A.K. NAYAK MARG; FORT, BOMBAY - 400001, MAHARASHTRA, INDIA

-

3

90149194

16/10/1991

5,225,000.00

THE MAHARASHTRA STATE FINANCIAL CORPORATION

NEW EXCELSIOR BUILDING, A.K. NAYAK MARG; FORT, BOMBAY - 400001, MAHARASHTRA, INDIA

-

 

 

UNSECURED LOANS

 

UNSECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

SHORT TERM BORROWINGS

 

 

Working capital loans from banks

10.480

0.000

 

 

 

Total

 

10.480

0.000

 

 

CHANGE OF ADDRESS:

 

The Registered office of the company has been shifted from 146, 14th Floor, Maker Chambers VI, 220 Nariman Point, Mumbai - 400021, Maharashtra, India to the present w.e.f.01.02.2007.

 

 

BACKGROUND

 

Subject was incorporated on February 15, 2000 and is a subsidiary of Sumitomo Chemical Company Limited, Japan (‘SCCL’). The Company is primarily engaged in manufacturing and sales of Household Insecticides, Agricultural Pesticides, Public Health Insecticides, Fine Chemicals and Animal Nutrition Products.

 

 

AMALGAMATION

 

Amalgamation of New Chemi Industries Limited (NCI), Scott Pharmaceuticals Private Limited (Scott) and SC Enviro Agro India Private Limited (SCEAI) with Sumitomo Chemical India Private Limited (SCIPL or the Company), during the previous year During the previous year, pursuant to the Scheme of Amalgamation (the Scheme) as approved in the court convened shareholder meeting held on 18 April 2011 and subsequent sanctioned by the Hon’ble courts of Judicature at Bombay and of Judicature at Gujarat vide their order dated 16 September 2011, NCI, Scott and SCEAI (collectively referred to as the amalgamating companies) have been merged with the Company. The amalgamating companies were engaged in manufacturing and sales of Agricultural Pesticides and Fine Chemicals products. As provided in the Scheme, 75,000,000 equity shares of face value of Rs. 10 each of the Company were issued against 50,000 equity shares of face value of Rs. 100 each, held in NCI, 7,253,521 equity shares of face value of Rs. 10 each of the Company were issued against 358,730 equity shares of face value of Rs. 10 each, held in SCEAI and SCIPL’s investments in such equity shares held by the Company stands cancelled. Further NCI’s shareholding, including shares held by its nominee, in Scott (7,500 equity shares of Rs. 100 each) and SCEAI (39,859 equity shares of Rs. 10 each) stands cancelled and the Company was not required to issue any shares as per the Scheme. As per the Scheme, the Appointed Date is 1 April 2011. The amalgamation had been accounted under “Purchase method” as prescribed by Accounting Standard 14 on “Accounting for Amalgamations”. Accordingly:

 

(i) All the assets and liabilities of NCI, Scott and SCEAI had been transferred and vested in the Company with effect from 1 April, 2011;

(ii) As specified in the Scheme, the difference of Rs 42.380 millions, being the difference between the amount recorded as share capital issued (Rs. 822.540 Millions) and the amount of assets and liabilities (listed below) taken over at Fair value of the amalgamating companies (Rs. 780.160 Millions) was treated as goodwill;

 

(iii) The book values of the intercompany balances and holdings stand cancelled.

 

Goodwill on amalgamation during the previous year and value of net assets and liabilities taken over at fair values are:

 

Particulars

Amount (Rs In Million)

Fixed assets

458.640

Current Assets including loans and advances

932.100

Investment

0.050

Less: Current Liabilities

530.630

Less: Unsecured Loan

80.000

 

780.160

Equity Shares issued

822.540

Goodwill

42.380

 

 

TURNOVER AND PROFITS:

 

During the year, the turnover of the Company was Rs.4945.820 Millions as against Rs. 4506.590 Millions in the previous year. This represents 9.75% growth. Although the company registered the growth rate at par with the industry average, this year it has shown the signs of improvements in PAT (Profit After Tax) Margins. After making provision for Depreciation, Interest and Tax, the Net Profit during the year amounts to Rs.127.800 millions as against Rs.106.920 millions of Net Loss in the previous year. This is mainly due to reduction in finance cost, depreciation & foreign exchange loss. Despite of high volatility in foreign exchange rates and the pressure of increasing input costs for power and other raw materials, the Company has managed to reduce its foreign exchange loss by undertaking effective hedging activities and has succeeded in maintaining its excellent business performance.

 

 

FUTURE OUTLOOK:

 

With the improved infrastructure, skilled manpower and strategic alliances, the Company is now set to take leap forward in the areas of Household Insecticides, Crop Protection and Public Health. In the face of escalating input costs, stiffer competition, and a struggling global economy, the Company has continued its quest to increase the operational size and reduce operating cost and adhere to the principal of deriving incremental profits through higher volumes. The overall financial performance of the company for the year was satisfactory and is expected to continue its momentum. Ongoing business challenges such as the prolonged global economic crisis, volatile input prices, high volatile exchange rates and increased pricing pressures are dampening company’s expectations. The business of household insecticides, animal nutrition and crop protection manufacturing is growing at a steady rate. If normal conditions prevail, the company is hopeful of achieving better results in coming years.

 

 

FINANCE:

 

During the year, the finance cost of the company has reduced by Rs.22.040 millions. This is mainly due to effective working capital management which led to lesser borrowings and also better credit terms availed from the creditors.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

Disputed Sales tax demand – matter under appeal

7.350

8.770

Disputed Income tax demand – matter under appeal

122.790

114.500

Disputed rent of premises

2.710

2.710

Disputes Service tax demand –matter under appeal

5.880

6.410

 

 

 

Total

 

138.730

132.390


FIXED ASSETS:

 

Tangible Assets

 

·         Land

Buildings

Residential building

Office building

Factory building

Plant and equipment

Furniture and fixtures

Vehicles

Office equipment

Leasehold improvements

 

Intangible Assets

 

Goodwill

Brands and trade marks

Copyrights

Patents

Licenses and franchise

Know-how

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. 62.24

UK Pound

1

Rs. 102.17

Euro

1

Rs. 84.82

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

29

 

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.