MIRA INFORM REPORT
|
Report Date : |
15.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
RELAXO FOOTWEARS LIMITED |
|
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Registered
Office : |
316-319, Allied
House, Inderlok Chowk, Old Rohtak Road, Delhi – 110035 |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
13.09.1984 |
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Com. Reg. No.: |
55-19097 |
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Capital
Investment / Paid-up Capital : |
Rs.60.006 Millions |
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CIN No.: [Company Identification
No.] |
L74899DL1984PLC019097 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELR08034F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing and Trading of Footwear’s. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 11100000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having fine track record. The rating reflects company’s healthy financial risk profile marked by
adequate liquidity position and decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payment
terms are reported to be regular and as per commitments. The company can be considered good for normal 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.
HENKEL RATING
|
HENKEL’s Rating : |
300, 301 (Moderate risk) |
|
Credit
Rating |
Henkel
Rating (Customer Risk Assesment- CRA) |
||
|
Mira
Inform |
Risk
Category |
Credit
Limit |
Description |
|
Aaa |
100 |
Inter Company, credit limit
not required |
Very low risk (blue ships) |
|
Aa |
200,
201 |
(120% of Gross Annualised
Sales/365)*Credit Term. |
Low risk |
|
A |
300,
301 |
(100% of Gross Annualised
Sales/365)*Credit Term. |
Moderate risk |
|
Ba |
350 |
(90% of Gross Annualised
Sales/365)*Credit Term. |
Significant risk |
|
B |
400 |
(80% of Gross Annualised
Sales/365)*Credit Term. |
High risk |
|
450 |
Very high risk |
||
|
Ca
or C |
500* |
NIL/ Legal/ Bad/No Transaction |
Doubtful accounts |
|
007* |
NIL |
Small unrated customers |
|
|
009* |
NIL |
Inactive customers |
|
|
999* |
Initially First Invoice vales,
CRA will be done and based on report the CL would get revised. |
New customer |
|
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term loans = A+ |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
September, 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non-fund based limits = A1 |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
September, 2014 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON CO-OPERATIVE
Contact No.: 91-11-46800500
LOCATIONS
|
Registered Office : |
316-319, Allied
House, Inderlok Chowk, Old Rohtak Road, Delhi – 110035, India |
|
Tel. No.: |
91-11-23658354/ 23658365/ 23658366/ 23658568 |
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Fax No.: |
91-11-23658431/ 23658773 |
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E-Mail : |
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Website : |
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Corporate Office : |
Aggarwal City Square, Plot No.10, Mangalam Place, District Centre,
Sector – 3, Rohini, Delhi – 110085, India |
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Tel. No.: |
91-11-46800500/ 46800600 |
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Fax No.: |
91-11-46800598/ 46800599 |
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E-Mail : |
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Factory : |
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RFL-I : |
Plot No. 327, MIE, Bahadurgarh, |
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RFL-II : |
Plot No. 326, MIE, Bahadurgarh, |
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RFL-III : |
A-1130 and 1130 (A), RIICO Industrial Area, Phase-III, Bhiwadi, |
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RFL-IV : |
30/3/2, Rakba Mooja Hasanpur, Tikri Border (Near Sales Tax Office)
Bahadurgarh, |
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RFL-V : |
83-92, SIDCUL Industrial Area, BHEL, Haridwar, |
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RFL-VI : |
342-343, |
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RFL-VII : |
Plot No. 328-329, MIE, Bahadurgarh, |
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RFL VIII : |
Plot No. 37, Sector 4B, Bahadurgarh, Haryana, India |
DIRECTORS
(AS ON 31.03.2014)
|
Name : |
Mr. Ramesh Kumar Dua |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. Mukand Lal Dua |
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Designation : |
Whole Time Director |
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|
Name : |
Mr. Nikhil Dua |
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Designation : |
Whole Time Director |
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|
Name : |
Mr. Deval Ganguly |
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Designation : |
Whole Time Director |
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|
Name : |
Mr. Kuruvila Kuriakose |
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Designation : |
Independent Director |
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|
Name : |
Mr. Vivek Kumar |
|
Designation : |
Independent Director |
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|
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|
Name : |
Mr. Pankaj Shrimali |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Kapil Garg |
|
Designation : |
Company Secretary |
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|
Name : |
Mr. Sushil Batra |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2014)
|
Category of Shareholder |
Total No. of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
||
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|
45004500 |
75.00 |
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|
45004500 |
75.00 |
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Total
shareholding of Promoter and Promoter Group (A) |
45004500 |
75.00 |
|
(B)
Public Shareholding |
||
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|
|
|
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|
63100 |
0.11 |
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|
6002 |
0.01 |
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|
1227255 |
2.05 |
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|
1296357 |
2.16 |
|
|
|
|
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|
9713445 |
16.19 |
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|
|
|
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|
3044928 |
5.07 |
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|
785882 |
1.31 |
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|
160888 |
0.27 |
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|
155624 |
0.26 |
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|
5264 |
0.01 |
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|
13705143 |
22.84 |
|
Total
Public shareholding (B) |
15001500 |
25.00 |
|
Total
(A)+(B) |
60006000 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
||
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
60006000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Trading of Footwear’s. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Information declined by the management. |
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Bankers : |
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Facilities : |
NOTE: LONG TERM
BORROWINGS
SHORT TERM
BORROWINGS Details of
Securities Secured by way of first Pari Passu charge on Inventories, Book Debts, Specific Immovable Properties of the Company and Personal Guarantee of Managing Director and Whole Time Directors. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Gupta and Dua Chartered Accountants |
|
Address : |
9, Darya Ganj, Delhi – 110002, India |
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Associate Companies : |
Relaxo Rubber Private Limited |
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Entities Where Key
Management Personnel Exercise Significant Influence : |
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CAPITAL STRUCTURE
(AS ON 31.03.2014)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20,00,00,000 |
Equity Shares |
Rs. 1/- each |
Rs. 200.000 Millions |
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|
|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6,00,06,000 |
Equity Shares |
Rs. 1/- each |
Rs.60.006
Millions |
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|
|
|
|
SHAREHOLDERS HOLDING
MORE THAN 5% EQUITY SHARES AT THE END OF THE YEAR:
|
Name of Shareholders |
31.03.2014 |
|
|
|
Number of Shares
Held |
% Holding |
|
|
|
|
|
Ramesh Kumar Dua |
15736575 |
26.23% |
|
Mukand Lal Dua |
13385350 |
22.31% |
|
VLS Finance Limited |
4528880 |
7.55% |
|
VLS Securities Limited |
4075000 |
6.79% |
RECONCILIATION OF
EQUITY SHARES OUTSTANDING AT THE BEGINNING AND AT THE END OF THE YEAR :
|
Name of Shareholders |
31.03.2014 |
|
|
|
Number of Shares
Held |
Amount in Millions |
|
At the beginning of the year Equity Shares of face value Rs.5/- each |
12001200 |
60.006 |
|
Addition on account of Sub-Division of Equity Shares of Rs. 5/- face value into Equity Shares of Rs.1/- face value |
48004800 |
---- |
|
Outstanding at the end of the year Equity Shares of face value Rs.1/- each (Previous year Rs. 5/- each) |
60006000 |
60.006 |
SUB-DIVISION OF
EQUITY SHARES
Pursuant to recommendation of the Board of Directors of the Company at its meeting held on 27th July, 2013 and followed by approval of the members in the Annual General Meeting held on 19th September, 2013, each Equity Share of the face value of Rs. 5/- fully paid up was sub-divided into five Equity shares of Rs.1/- each fully paid up in November, 2013. In accordance with the Accounting Standard 20 pertaining to Earnings Per Share, the Company has given effect to the above mentioned sub-division of shares in computing the Earnings Per Share for the applicable previous year.
RIGHTS, PREFERENCES
AND RESTRICTIONS ATTACHED TO EQUITY SHARES
The Company has only one class of equity shares having a face value of Rs.1/- per share. Each holder of Equity Shares is entitled to one vote per share. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the company in proportion to their number of Equity Shares after distribution of all preferential amounts.
The Equity Shares of the Company are listed at Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Annual Listing Fee has been paid for the year.
FINANCIAL DATA
[All figures are
in Rupees Millions]
NOTE :
FINANCIALS DETAILS ATTACHED
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
60.006 |
60.006 |
60.006 |
|
Reserves & Surplus |
1664.349 |
2084.350 |
2705.612 |
|
Net
worth |
1724.355 |
2144.356 |
2765.618 |
|
|
|
|
|
|
long-term borrowings |
925.427 |
1502.436 |
1143.095 |
|
Short term borrowings |
529.748 |
546.621 |
484.080 |
|
Total
borrowings |
1455.175 |
2049.057 |
1627.175 |
|
Debt/Equity
ratio |
0.844 |
0.956 |
0.588 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operation |
8646.741 |
10098.273 |
12118.332 |
|
|
|
16.787 |
20.004 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operation |
8646.741 |
10098.273 |
12118.332 |
|
Profit / (Loss) After Tax |
399.050 |
448.082 |
656.364 |
|
|
4.62% |
4.44% |
5.42% |
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 |
No |
|
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 |
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 |
Yes |
UNSECURED LOANS
|
Particulars |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
Long term
Borrowings |
|
|
|
Related Parties |
482.776 |
491.185 |
|
Others |
4.664 |
4.244 |
|
Total |
487.440 |
495.429 |
|
NOTE : * The Unsecured Loans from Promoters and/or their relatives shall be repaid only with the prior approval of Lending Banks . These are Long Term Borrowings and are always subordinate to the Loans of Banks. |
||
BUSINESS PERFORMANCE
The Company has demonstrated the resilience of its business model amidst operating in a volatile and uncertain industrial environment. The key highlights of the Company’s financial performance during the financial year 2013-14 are given here below:-
• Net Sales increased by 20.0% to Rs. 12058.295 Millions
• EBITDA increased by 34.7% to Rs. 1493.553 Millions; EBITDA margins increased by 135 bps to 12.39%
• Net Profit increased by 46.5% to Rs. 656.364 Millions; Net Profit margins increased by 98 bps to 5.44%
• Total retail outlets increased from 168 to 179 during FY14
The Company has recently initiated modern trade through institutional sales and online shopping access to the customers, to boost sales and have presence in all trade options.
Parivartan, a strategic initiative targeted towards improving operating efficiency was undertaken by Relaxo in the year and it has been making contributions in improving the productivity.
OUTLOOK
In the transforming era where footwear industry in India has shown an outgrowth in the recent years due to its increased demand, however the industry has faced multiple challenges in terms of infrastructure, resources and facilities etc. With the arrival of latest advancements, the growth of non-leather footwear in India has become prominent. The Company has a wide scope for growth of footwear industry with all the positives on its side. Our access to state-of-theart machineries opens up a number of possibilities as a stimulating factor.
After China, India has topped the countdown to be such global producer of footwear, accounting for the major production centres with such 1.10 million centres engaged in the footwear manufacturing industry. The way footwear sector has become prominent in the non-leather industry, at present most of footwear brands in India are putting efforts on deploying resources and producing high-quality and durable non-leather footwear for the entire family.
COMPANY INFORMATION
Relaxo Footwears Limited (the Company) is a Public Limited Company registered in India and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company is one of the leading players in the Footwear Industry engaged in manufacturing and trading of footwear and other articles. The company has ‘state of the art’ manufacturing facilities at Bahadurgarh (Haryana), Bhiwadi (Rajasthan) and Haridwar (Uttarakhand). The selling arrangements are through its wholesale, export and retail network.
CONTINGENT
LIABILITIES NOT PROVIDED FOR (RS. IN MILLIONS)
|
Particulars |
31.03.2014 |
31.03.2013 |
|
(a) Claims against
the company, not acknowledged as debts |
3.810 |
3.882 |
|
Sales Tax Matters |
3.919 |
2.708 |
|
Income Tax Matters |
--- |
|
|
Haryana State Industrial & Infrastructure Development Corporation
Limited (HSIIDC) |
|
155.59 |
|
Guarantees |
|
|
|
Surety Bonds given to Government Authorities |
0.550 |
0.550 |
|
Others |
|
|
|
Interest on Entry Tax, Haryana - The matter has been decided in favour
of the Company, although the department has preferred appeal before Hon’ble Supreme
Court of India |
117.033 |
67.267 |
|
Interest on
Entry Tax, Rajasthan - Under dispute and department appeal is pending before
Hon’ble High Court, Jodhpur |
0.356 |
0.226 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10393903 |
08/05/2014 * |
550,000,000.00 |
STANDARD
CHARTERED BANK |
(Acting as an
Security Agent) C D U, NARAIN MANZI |
C04014973 |
|
2 |
10300986 |
26/11/2011 * |
360,000,000.00 |
STANDARD
CHARTERED BANK (ACTING AS AN SECURITY AGE |
CREDIT RISK
CONTROL, NARAIN MANZIL, 23 BARAKHAMBA |
B28030310 |
|
3 |
10243583 |
25/09/2013 * |
200,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU
CENTRE, DISCOVERY OF INDIA,, DR. |
B89729669 |
|
4 |
10241073 |
16/08/2010 |
100,000,000.00 |
HDFC BANK
LIMITED |
HDFC BANK HOUSESENAPATI
BAPAT MARG, LOWER PAREL W |
A95102141 |
|
5 |
10190999 |
22/02/2014 * |
400,000,000.00 |
ING VYSYA BANK
LIMITED |
NARIAN
MANZIL,GROUND FLOOR,SHOP NO. G1 TO G5,I FLO |
C00646497 |
|
6 |
10190820 |
04/11/2009 |
150,000,000.00 |
HDFC BANK
LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W |
A74859802 |
|
7 |
10165541 |
11/03/2014 * |
250,000,000.00 |
HDFC BANK
LIMITED |
HDFC BANK HOUSE
SENAPATI BAPAT MARG, LOWER PAREL |
C05745633 |
|
8 |
10090717 |
24/09/2013 * |
706,900,000.00 |
State Bank of
India |
Commercial Branch,
N-3 South Extension Part-I, Ne |
B86690450 |
|
9 |
10072977 |
09/06/2014 * |
350,000,000.00 |
STANDARD
CHARTERED BANK |
CREDIT
DOCUMENTATION UNIT, NARAIN MANZIL, 23 BARA |
C09248501 |
* Date of charge modification
FIXED ASSETS:
· Land – Freehold
· Land – Leasehold
· Buildings
· Plant and Machinery
· Moulds
· Computers
· Motor Vehicles – Other
· Motor Vehicles – Transport
· Furniture and Fixture
· Electric Fittings
· Office Equipments
· Wooden Structure
· Wind Mills
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or convction
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.61.10 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
64 |
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 |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.