MIRA INFORM REPORT

 

 

Report Date :

25.01.2014

 

IDENTIFICATION DETAILS

 

Name :

SHYAM SEL AND POWER LIMITED (w.e.f. 22.04.2008)

 

 

Formerly Known As :

SHYAM SEL LIMITED

 

 

Registered Office :

5 C R Avenue, Princep Street, Kolkata-700072, West Bengal.

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

05.09.1991

 

 

Com. Reg. No.:

21-052962

 

 

Capital Investment / Paid-up Capital :

Rs.364.243 Millions

 

 

CIN No.:

[Company Identification No.]

U27109WB1991PLC052962

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALS07513C

 

 

PAN No.:

[Permanent Account No.]

AAECS9421J

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Iron and Steel

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (53)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 23000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a satisfactory track record.

 

There appears dip in the profit of the company during the year 2013. However, networth of the company appears to be decent.

 

Trade relations are fair. Business is active. Payment terms are regular and as per commitments.

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating = A-

Rating Explanation

Having adequate degree of safety and carry low credit risk.

Date

29.10.2013

 

Rating Agency Name

CRISIL

Rating

Short Term Rating = A2+

Rating Explanation

Having strong degree of safety and carry low 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 31-03-2012.

 

LOCATIONS

 

Registered Office :

5, C.R. Avenue, Princep Street, Kolkata-700072, West Bengal, India.

Tel. No.:

91-33-40111000 / 22117794

Fax No.:

91-33-40111031

E-Mail :

shyam_sel@rediffmail.com

seltmt@shyamgroup.com

Website :

http://www.shyamgroup.com

 

 

Corporate Office :

“Viswakarma” 1st Floor, 86C, Topsia Road, Kolkata-700046, West Bengal, India

Tel. No.:

91-33-4011 3000

Fax No.:

91-33-2285 2212

E-Mail :

sel.tmt@shyamgroup.com

 

 

DIRECTORS

 

As on 30.09.2013

 

Name :

Mr. Brij Bhushan Agarwal

Designation :

Director

Address :

3 B, Ashoka Road, 2nd Floor, Kokata-700027, West Bengal, India.

Date of Birth/Age :

13.09.1972

Date of Appointment :

26.07.1999

DIN No.:

01125056

PAN No.:

ACGPA0365A

 

 

Name :

Mr. Pawan Kumar Agarwal

Designation :

Director

Address :

CA-54, Sector I, Salt Lake City, Kolkata-700064, West Bengal, India.

Date of Birth/Age :

01.08.1947

Date of Appointment :

01.04.2013

DIN No.:

00235897

PAN No.:

ACKPA5917G

 

 

Name :

Mr. Bajrang Lal Agarwal

Designation :

Director

Address :

CA-54, Sector I, Salt Lake City, Kolkata-700064, West Bengal, India.

Date of Birth/Age :

20.01.1951

Date of Appointment :

01.04.2013

DIN No.:

00235978

PAN No.:

ACWPA3142K

 

 

Name :

Mr. Deepak Kumar Agarwal

Designation :

Director

Address :

70/2, Sambhu Nath, Pandit Street, Kolkata-700025, West Bengal, India.

Date of Birth/Age :

06.01.1974

Date of Appointment :

25.03.2008

DIN No.:

00560010

PAN No.:

ADBPA4042Q

 

 

KEY EXECUTIVES

 

Name :

Mr. Somnath Chattopadhyay

Designation :

Secretary

Address :

544, Bosenagar, Madh, Yamgram, Kolkata-700129, West Bengal, India.

Date of Birth/Age :

26.10.1971

Date of Appointment :

02.01.2009

Pan No. :

AESPC5201P

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2013

 

SHAREHOLDING DETAILS FILE ATTACHED

 

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Bodies corporate

85.42

Directors or relatives of Directors

14.58

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Iron and Steel

 

 

Products :

Description of product or service category

ITC Code

Ferro Silico Manganese

72023000

TMT BARS/ MS TOR

72141090

MS Ingot/ Billets

72071920

Sponge Iron

72031000

 

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         Axis Bank Limited, Corporate Banking Branch (Cbb), 1, Shakespeare Sarani, Ac Market, 3rd Floor, Kolkata - 700071, West Bengal, India

 

·         DBS Bank Limited, Acting As Security Agent Of Dbs Bank Singapore, 4A, Nandlal Basu Sarani,, Kolkata - 700071, West Bengal, India

 

·         Oriental Bank Of Commerce, Park Street Branch, 107/1, Park Street (1st Floor), Kolkata - 700016, West Bengal, India

 

·         Corporate Banking Branch, Corporate Banking Branch, 17, Brabourne Road, Mookherjee House, 1st Floor, Kolkata - 700001, West Bengal, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Long-term borrowings

 

 

Rupee term loans from banks

421.731

25.264

Foreign currency term loans from banks

67.987

253.996

Deferred payment liabilities

2773.854

1330.069

Deferred payment Indian sources

0.000

1.019

Short-term borrowings

 

 

Loans repayable on demand from banks

1245.925

1807.923

Total

4509.497

3418.271

 

 

 

Banking Relations :

---

 

 

Finance Institutions :

Citicorp Finance (India) Limited, 7th Floor, Metro Plaza, 1 Ho Chi Minh Sarani, Kolkata - 700071, West Bengal, India

 

 

Auditors :

 

Name :

J Jain and Company

Chartered Accountants

Address :

23A, Netaji Subhash Road, 11th Floor, Room No. 44, Kolkata-700001, West Bengal, India

Tel. No.:

91-33-22302243/ 22420308

Fax No.:

91-33-22300258

E-Mail :

jjainco@gmial.com

PAN No.:

AABFJ8069K

 

 

Holding Company :

Shyam Metalics and Energy Limited

 

 

Subsidiary Company :

·         Shyam Energy Limited

·         Shyam Ores (Jharkhand) Private Limited

 

 

Enterprises over which Key Management Personnel / Relatives have significant influence

·         Essel Plywood Private Limited

·         Conventary Commdeal Private Limited

·         Inforev Software Private Limited

·         Esskay Business Private Limited

·         Narantak Dealcomm Limited

·         Toplight Mercantile Private Limited

·         Ponni Trexim Private Limited

·         Shaily Sales and Services Private Limited

·         Kalpataru Housefin Private Limited

·         Subham Capital Private Limited

·         Dorite Tracon Private Limited

·         Shyam Century Multi Projects Limited

·         Gandhini Housing Private Limited

·         Shyam Greenfield Developers Private Limited

·         Shyam Ferro Alloys Limited

·         Pitamber Commercial Company Private Limited

·         Kalinga Energy Limited

·         Kalinga Infra-Projects Limited

·         Esteem Angan Private Limited

·         Pushpanjali Abasan Private Limited

·         Eureka Complex Private Limited

·         Goodlook Infracon Private Limited

·         Dewdrop Enclave Private Limited

·         Aradhana Greenfield Private Limited

·         Starpoint Housing Private Limited

·         Status Multiplex Private Limited

·         Wisely Real Estate Private Limited

·         Sunrise Plactics Private Limited

·         Sheetal Dealers Private Limited

·         Meghana Vyapar Private Limited

·         Avam Trades and Services Private Limited

·         Subhlabh Commercials Private Limited

·         Singbhum Steel and Power Private Limited

·         Shyam Solar Appliances Private Limited

·         Kolhan Metal and Alloys Private Limited

·         Shyam Emco Infrastructure Limited

·         Damodar Alumunium Private Limited

·         Gumla Alumunium Private Limited

·         Platinum Minmet Private Limited

·         Shyam Business Solution Private Limited

·         Sunglow Impex Private Limited

·         Swarnrekha Energy and Steel Private Limited

·         Subham Buildwel Private Limited

·         Whispering Developers Private Limited

·         Taurus Estates Private Limited

·         Glowing Realty Private Limited

·         Meadow Housing Private Limited

·         Sindbad Hydro Power Private Limited

·         Eureka Hydro Power Private Limited

 

 

CAPITAL STRUCTURE

 

As on 30.09.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

40100000

Equity Shares

Rs.10/- each

Rs.401.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

36424294

Equity Shares

Rs.10/- each

Rs.364.243 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

364.243

332.756

274.394

(b) Reserves & Surplus

5630.790

4989.356

4369.601

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

409.362

Total Shareholders’ Funds (1) + (2)

5995.033

5322.112

5053.357

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

3352.272

2008.053

188.391

(b) Deferred tax liabilities (Net)

227.315

191.579

153.730

(c) Other long term liabilities

451.034

834.828

489.677

(d) long-term provisions

8.141

7.664

7.447

Total Non-current Liabilities (3)

4038.762

3042.124

839.245

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1245.925

1807.923

1401.422

(b) Trade payables

1678.674

1458.432

1018.392

(c) Other current liabilities

2082.426

1490.227

2493.933

(d) Short-term provisions

0.000

0.000

0.000

Total Current Liabilities (4)

5007.025

4756.582

4913.747

 

 

 

 

TOTAL

15040.820

13120.818

10806.349

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

4648.418

2824.460

2738.235

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

2686.608

2797.576

1926.089

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

294.181

443.656

697.152

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

170.157

308.036

257.048

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

7799.364

6373.728

5618.524

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

3510.846

2662.985

2191.357

(c) Trade receivables

1394.407

1986.218

1283.168

(d) Cash and cash equivalents

504.410

207.692

157.022

(e) Short-term loans and advances

1432.235

1655.891

1423.478

(f) Other current assets

399.558

234.304

132.800

Total Current Assets

7241.456

6747.090

5187.825

 

 

 

 

TOTAL

15040.820

13120.818

10806.349

 


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

7887.367

7723.095

6451.524

 

 

Other Income

60.703

152.329

69.709

 

 

TOTAL                                     (A)

7948.070

7875.424

6521.233

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

5430.461

5457.199

3192.286

 

 

Purchases of stock-in-trade

0.000

266.423

1489.889

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

68.846

34.629

(146.395)

 

 

Employee benefit expense

107.080

95.182

88.011

 

 

Other expenses

1518.318

1246.730

1075.905

 

 

TOTAL                                     (B)

7124.705

7100.163

5699.696

 

 

 

 

 

Less

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

823.365

775.261

821.537

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

188.820

177.584

159.179

 

 

 

 

 

 

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

634.545

597.677

662.358

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

391.964

338.911

312.491

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

242.581

258.766

349.867

 

 

 

 

 

Less

TAX                                                                  (H)

48.585

(9.795)

88.575

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

193.996

268.561

261.292

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.75

9.73

10.80

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

2.44

3.41

4.01

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

3.08

3.35

5.42

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.01

2.62

4.28

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.04

0.05

0.07

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.77

0.72

0.31

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.45

1.42

1.06

 

 

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

No

9]

Name of person contacted

No

10]

Designation of contact person

No

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

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

STEEL INDUSTRY OVERVIEW

 

There is a huge growth potential in Steel consumption in India given that per capita steel consumption is very low compared to China and the global average. World steel forecasts that global apparent steel use increased by 3.6% to 1,422 Mt in 2012, following growth of 5.6% in 2011. In 2013, it was forecasted that world steel demand will grow further by 4.5% to around 1,486 Mt. and the growth rate would accelerate to 9.4 per cent on the back of urbanisation and surging infrastructure investment. But with the turbulent economic period and allout measure to clampdown inflation coupled with emerging European economic crisis and constant devaluation of money the projections were part accomplished. It could be projected that Steel consumption in India will slowly resume its growth trends in 2013-14. On the positive note, the s igns of stability are now emerging and we expect the recovery to resume in this ongoing fiscal, leading to a higher growth forecast for years to come.

 

Indian Steel Industry is, in a manner, insulated from the events effecting world steel industry as it is not dependent on export market. Domestic demand base will sustain the prosperity of Indian Steel Industry and the positive trend is regaining momentum. With the proposed expenditure in the 12th 5 Year Plan, turnaround is not far. According to the Report by the Ministry of steel, India has emerged as the fifth largest producer of steel in the world and is likely to become the second largest producer of crude steel by 2015-16.

 

OUTLOOK

 

Indian Steel Industry is, in a manner, insulated from the events effecting world steel industry as it is not dependent on export market. Domestic demand base will sustain the prosperity of Indian Steel Industry and the positive trend is regaining momentum. With the proposed expenditure in the 12th 5 Year Plan, turnaround is not far. To preserve the valuable natural resources the 30% ad-velorum export duty imposition on iron ores was a welcome measure for the industry as such. According to the Report by the Ministry of steel, India has emerged as the fifth largest producer of steel in the world and is likely to become the second largest producer of crude steel by 2015-16.

 

The Company is ready to take advantage of the growth in the iron and steel sector and upon completion and commissioning of its projects; it shall make a significant presence in the industry. The Company has an optimistic outlook ahead.

 

UNSECURED LOAN

Rs. In Millions

Particular

As on

31.03.2013

As on

31.03.2012

Long-term borrowings

 

 

Loans and advances from related parties

88.700

397.705

Total

88.700

397.705

 

 

 

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

 

Charge Holder

Address

Service Request Number (SRN)

1

10427295

20/05/2013

4,865,700,000.00

STATE BANK OF INDIA (LEAD BANK)

COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B75675033

2

10427301

20/05/2013

4,865,700,000.00

STATE BANK OF INDIA (LEAD BANK)

COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B75675801

3

10417970

28/02/2013

250,000,000.00

AXIS BANK LIMITED

CORPORATE BANKING BRANCH (CBB), 1, SHAKESPEARE SARANI, AC MARKET, 3RD FLOOR, KOLKATA, WEST BENGAL 
- 700071, INDIA

B72658537

4

10388636

06/11/2012

855,000,000.00

AXIS BANK LIMITED

CORPORATE BANKING BRANCH (CBB), 1, SHAKESPEARE SARANI, AC MARKET, 3RD FLOOR, KOLKATA, WEST BENGAL 
- 700071, INDIA

B62828934

5

10388728

17/10/2012

1,600,000,000.00

STATE BANK OF INDIA (LEAD BANK)

COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B62862628

6

10361021

11/06/2012

1,120,000,000.00

DBS BANK LIMITED

ACTING AS SECURITY AGENT OF DBS BANK SINGAPORE, 4 
A, NANDLAL BASU SARANI,, KOLKATA, WEST BENGAL - 700071, INDIA

B41789124

7

10310478

10/10/2011

200,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B22669451

8

10310815

10/10/2011

900,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B22804355

9

10320250

07/10/2011

8,039,000,000.00

ORIENTAL BANK OF COMMERCE

PARK STREET BRANCH,, 107/1, PARK STREET (1ST FLOOR), KOLKATA, WEST BENGAL - 700016, INDIA

B26362947

10

10282559

28/04/2011

1,609,960.00

TATA CAPITAL LIMITED

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

B11582822

 

* Date of charge modification

 

 

FIXED ASSETS

 

·         Leasehold Land

·         Freehold Land

·         Guest House

·         Factory Shed and Building

·         Plant and Machinery

·         Electrical and Other Installations

·         OEM’s

·         Vehicles

·         Laboratory Equipments

·         Furniture and Fixtures

·         Office Equipments

 

 

 


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.62.18

UK Pound

1

Rs.103.38

Euro

1

Rs.85.09

 

 

INFORMATION DETAILS

 

Report Prepared by :

NTH

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

53

 

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.