MIRA INFORM REPORT

 

 

Report Date :

20.01.2014

 

IDENTIFICATION DETAILS

 

Name :

OWENS-CORNING (INDIA) PRIVATE LIMITED (w.e.f. 12.05.2011)

 

 

Formerly Known As :

OWENS-CORNING (INDIA) LIMITED

 

 

Registered Office :

7th Floor, Alpha Building, Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

05.07.1995

 

 

Com. Reg. No.:

11-124707

 

 

Capital Investment / Paid-up Capital :

Rs. 1308.130 Millions

 

 

CIN No.:

[Company Identification No.]

U73100MH1995PTC124707

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMO01785A

 

 

PAN No.:

[Permanent Account No.]

AAACO1739M

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Trader of Glass Fiber Products for use in composites.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (49)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

 

Maximum Credit Limit :

USD 16300000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “Owens Corning Inc., USA”. It is a well-established company having a satisfactory track record.

 

There appears dip in profitability of the company during the financial year 2013.

 

However, general financial position of the company seems to be sound and healthy.

 

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

 

The company can be considered 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.

 

 

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 DECLINED BY

 

Name :

Mr. Parash Shah

Designation :

Accounts Manager

Contact No.:

91-22-66681797

Date :

16.01.2014

 

 

LOCATIONS

 

Registered Office :

7th Floor, Alpha Building, Hiranandani Gardens, Powai, Mumbai-400076, Maharashtra, India

Tel. No.:

91-22-66681700

Fax No.:

91-22-66681701

E-Mail :

anil.kaul@owenscorning.com

phani.kumar@owenscorning.com

appaswamy@owenscorning.com

Website :

http://www2.owenscorning.com

 

 

Corporate Office :

301-310, A Wing, Bonanza, Sahar Plaza Complex, M. V. Road, Andheri (East), Mumbai-400059, Maharashtra, India

Tel. No.:

91-22-28398250

Fax No.:

91-22-28398251

 

 

Factory 1 :

Plot No. T 28, MIDC, Phase 2, Taloja, District Raigad-410208, Maharashtra, India

Tel. No.:

91-22-39219100/ 27402108

Fax No.:

91-22-39219101

 

 

Branch Office :

Located At:

 

·         New Delhi

·         Mumbai

 

 

DIRECTORS

 

AS ON 25.09.2013

 

Name :

Mr. Shivanand Narsing Gulvady

Designation :

Director

Address :

Flat No. 61, 6th Floor, Lenyadri Tower, Plot 49/2, Sector 19A, Nerul (East), Navi Mumbai – 400706, Maharashtra, India

Date of Appointment :

07.12.2012

PAN No.:

AADPG5085G

DIN No.:

02321203

 

 

Name :

Marcio Anacleto Sandri

Designation :

Director

Address :

7760 Honeysuckle Ln, Maumee Ch, Maumee 43537, United States of America

Date of Appointment :

17.01.2012

DIN No.:

05172008

 

 

Name :

Anindya Ghosh

Designation :

Director

Address :

U 7 Vidyasagar Niketan, Salt Lake, Kolkata – 700064, West Bengal, India

Date of Appointment :

07.12.2012

PAN No.:

ABMPG9277E

DIN No.:

05221554

 

 

Name :

Linling Wu

Designation :

Additional director

Address :

Room 1002, No.7, Lane 500, Huang Jin Cheng Avenue, Changning District, Shanghai 201103

Date of Birth/Age :

26.05.1963

Date of Appointment :

11.12.2013

DIN No.:

06754034

 

 

KEY EXECUTIVES

 

Name :

Mr. Parash Shah

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 25.09.2013

 

Names of Shareholders

 

No. of Shares

 

IPM Inc. Delaware

 

78487796

OC NL Invest Cooperatief U. A.

 

52325196

OC NL Invest Cooperatief U. A jointly with Satish Kulkarni

 

1

OC NL Invest Cooperatief U. A jointly with Phani Kumar

 

1

OC NL Invest Cooperatief U. A, Jointly with Edward Neunuebel

 

1

OC NL Invest Cooperatief U. A, Jointly with Claire Dagommer

 

1

OC NL Invest Cooperatief U. A, Jointly with Magali Leroux

 

1

 

 

 

Total

 

 

130812997

 

 

AS ON 25.09.2013

 

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]

100.00

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Glass Fiber Products for use in composites.

 

 

PRODUCTION STATUS [AS ON 31.03.2011]

 

Particulars

Unit

Installed Capacity*

Actual Production

Glass Fiber Products

 

 

 

Reinforcements@

Tonnes

51010

50049

Technical Fabrics

Tonnes

10800

9351

 

NOTES:

 

* As Certified by the Management.

 

@ The actual production of reinforcements includes captive consumption of 5,733 Tonnes (Previous Year - 8,419 Tonnes) for Technical Fabrics.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         HDFC Bank Limited

HDFC Bank House, Senapati Bapat Marg, Lower Parel [West], Mumbai - 400013, Maharashtra, India

 

·         Citibank

ICICI Bank

State Bank of India

JP Morgan Chase Bank

 

 

Facilities :

 

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Vehicle Loans from a Bank

[Secured against underlying asset and is repayable in forty eight equal instalments from the date loan is taken alongwith interest as per terms of agreement.]

3.700

1.200

 

 

 

Total

 

3.700

1.200

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

Address :

252, Veer Savarkar Marg, Opposite Shivaji Park, Dadar (West), Mumbai – 400028, Maharashtra, India

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

AAEFP3641G

 

 

Ultimate Holding company :

Owens Corning Inc.

 

 

Holding Company :

IPM Inc. Delaware, USA

 

 

Fellow Subsidiary Company :

·         Owens Corning Composite Materials, LLC

Owens Corning Korea

Owens Corning Australia Pty Limited

Owens Corning Fiberglas Espana S.L.

OCV Mexico S DE RL DE CV

European Owens Corning Fiberglas SA

OCV Reinforcements (Beijing) Company Limited

OCV Reinforcements Hangzhou Company Limited

OCV Composites (China) Company Limited

OCV Fabrics (Changzhou) Company Limited

OCV Chambery France

Owens Corning Industries (India) Private Limited [U26102AP1998FTC030183]

Owens Corning, Hong Kong

Owens Corning Japan Limited

Owens Corning Veil UK Limited

Owens Corning  Fiberglas France

OCV Czech SRO

OCV Reinforcements Alcala Spain, S.L

OCV Chambery International

Owens Corning Singapore Pte Limited

OC NL Invest Cooperatief U.A

Owens Corning Veil Netherlands B.V.

Owens Corning Enterprise (India) Private Limited [U26102MH2003FTC143522]

OCV Italia SRL., Besana

OCV Thailand Company Limited

Owens Corning Britinvest Limited

Owens Corning (India Branch Office)

OC Insulating Systems Canada LP

Owens Corning Sales, LLC

OC Pro CV

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

200,000,000

Equity Shares

Rs. 10/- each

Rs. 2000.000 Millions

2,500,000

Preference Shares

Rs. 100/- each

Rs. 250.000 Millions

 

Total

 

Rs. 2250.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

130,812,997

Equity Shares

Rs. 10/- each

Rs. 1308.130 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2013

31.03.2012

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

1308.130

1308.130

(b) Reserves & Surplus

 

2777.000

2668.700

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

4085.130

3976.830

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

3.700

1.200

(b) Deferred tax liabilities (Net)

 

452.200

504.500

(c) Other long term liabilities

 

0.000

0.000

(d) long-term provisions

 

33.300

41.300

Total Non-current Liabilities (3)

 

489.200

547.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

0.000

0.000

(b) Trade payables

 

375.170

277.170

(c) Other current liabilities

 

99.900

110.700

(d) Short-term provisions

 

165.000

156.500

Total Current Liabilities (4)

 

640.070

544.370

 

 

 

 

TOTAL

 

5214.400

5068.200

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

2850.500

3169.300

(ii) Intangible Assets

 

4.200

5.600

(iii) Capital work-in-progress

 

59.900

96.900

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

0.000

0.000

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

84.000

70.000

(e) Other Non-current assets

 

0.000

0.000

Total Non-Current Assets

 

2998.600

3341.800

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

544.600

786.700

(c) Trade receivables

 

825.400

618.100

(d) Cash and cash equivalents

 

626.300

184.600

(e) Short-term loans and advances

 

219.200

135.700

(f) Other current assets

 

0.300

1.300

Total Current Assets

 

2215.800

1726.400

 

 

 

 

TOTAL

 

5214.400

5068.200

 

 

SOURCES OF FUNDS

 

 

 

31.03.2011

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

1308.130

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

2164.700

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

3472.830

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

244.700

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

244.700

DEFERRED TAX LIABILITIES

 

 

533.200

 

 

 

 

TOTAL

 

 

4250.730

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

3267.600

Capital work-in-progress

 

 

210.000

 

 

 

 

INVESTMENT

 

 

0.000

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 
 

535.100

 

Sundry Debtors

 
 

649.400

 

Cash & Bank Balances

 
 

266.600

 

Other Current Assets

 
 

2.400

 

Loans & Advances

 
 

188.500

Total Current Assets

 
 

1642.000

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

 
 

475.970

 

Other Current Liabilities

 
 

327.900

 

Provisions

 
 

65.000

Total Current Liabilities

 
 

868.870

Net Current Assets

 
 

773.130

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

4250.730

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Sales

3843.500

3857.100

4020.313

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                     (A)

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

NA

NA

NA

 

 

 

 

 

Less

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

541.500

1086.800

1149.637

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

9.900

19.300

11.973

 

 

 

 

 

 

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

531.600

1067.500

1137.664

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

339.500

323.000

298.615

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

192.100

744.500

839.049

 

 

 

 

 

Less

TAX                                                                  (H)

83.800

240.500

224.368

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

108.300

504.000

614.681

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1823.300

1319.300

704.656

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

1931.600

1823.300

1319.337

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.83

3.85

4.70

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Net Profit Margin

(PBT/Sales)

(%)

5.00

19.30

20.87

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.73

14.98

17.09

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.05

0.19

0.24

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00

0.00

0.07

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.46

3.17

1.89

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

CURRENT MATURITIES OF LONG TERM DEBT

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

 

 

 

 

Current maturities of long-term debt

2.000

2.000

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

No

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

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

Yes

33]

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

No

34]

External Agency Rating, if available

No

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10394333

03/12/2012

325,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL [WEST], MUMBAI - 400013, MAHARASHTRA, INDIA

B64962202

2

10068510

04/09/2007

210,000,000.00

CITIBANK N.A.

FORT HOUSE, DR. D. N. ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA

A23647126

 

 

CHANGE OF ADDRESS:

 

The registered address of the company Mahindra Towers, Ground Floor, Road No. 13, Worli, Mumbai – 400018, Maharashtra, India has been shifted to present address w.e.f. 25.03.2009.

 

 

COMPANY PROFILE

 

Subject was incorporated in India on July 5, 1995. The Company is involved in the manufacture of glass fiber products for use in composites. The Company's manufacturing location is situated at Taloja, District Raigarh (Maharashtra) and head office/registered office is at Powai, Mumbai. The Company was converted into a private limited company effective May 12, 2011 and accordingly, the name of Company was changed to Owens-Corning (India) Private Limited.

 

 

OPERATIONS REVIEW:

 

The Company continues to be a leading player of glassfibre market in India. The Industry continues to face pricing pressure due to cheaper imports. During the year the Industry demand remained flat with noticeable drop in certain sectors like wind energy and in Exports. The company resorted to curtailing its operations for few months during the year. The Company recorded sales of 47,461 MT (PY 48,679 MT) and 5.9 MMm 2 (PY 0.11 MMm 2) out of own manufactured products and 2,054 MT (PY 2,269 MT) and 0.88 MMm 2 (PY 1.4 MMm 2) out of traded products of both Glass Reinforcements and Engineered Solutions during the year ended March 31, 2013.

 

The manufacturing facility continues to pursue various cost saving measures including sourcing, energy efficiency and productivity improvement initiatives. During the year your Company received ‘National Energy Award’ and ‘Safety Award’. The Plant continued its injury free operations and crossed 1,000 days in April 2013.

 

The Manufacturing Facility at Taloja had a fire on August 5, 2013 causing asset damage and impacting the manufacturing process. The Plant resumed partial production within 2 days and is in full production in early September 2013. Stabilized operations are expected to be in few days. The company is working closely with the insurance company to claim damages and business interruption losses.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

(a) Service Tax Matters

48.000

42.000

(b) Excise Matters

4.100

82.600

(c) Sales Tax Matters

70.900

87.900

(d) Income Tax Matters

44.400

44.400

 

a) Future cash outflows in respect of (a) to (d) above, if any, are determinable only on receipt of judgments/ decisions pending with various forums/ authorities. The Company does not expect any outflow in respect of the same.

 

b) Based on the opinion obtained by the Management and certain available precedence in the industry, the Management has taken the view that the amount of Rs. 465.100 Millions arising out of remission of a loan liability in Year 2002, is capital in nature, and hence was credited to the Capital Reserve Account. Further, in view of the Management and based on the independent opinion obtained, the aforesaid amount of Rs. 465.100 Millions is not considered as income chargeable to tax under the Income Tax Act, 1961 of India and this is being presently contested by the Company with income tax authorities.

 


FIXED ASSETS:

 

·         Land

Buildings

Plant and equipment

Furniture and fixtures

Vehicles

Motor vehicles

Office equipment

Leasehold improvements

Computer 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. 61.35

UK Pound

1

Rs. 100.21

Euro

1

Rs. 83.52

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Report Prepared by :

BVA

 


 

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

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

49

 

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.