MIRA INFORM REPORT

 

 

Report No. :

319014

Report Date :

29.04.2015

 

IDENTIFICATION DETAILS

 

Name :

ARCELORMITTAL DISTRIBUTION SOLUTIONS INDIA PRIVATE LIMITED (w.e.f. 29.07.2009)

 

 

Formerly Known as :

ARCELORMITTAL-STAINLESS INTERNATIONAL INDIA PRIVATE LIMITED (w.e.f. 27.05.2008)

 

ARCELOR STAINLESS INDIA PRIVATE LIMITED

 

 

Registered Office :

Unit No. 202-A, 2ND Floor, Dosti Pinnacle, Plot No. E-7, Road No. 22, Wagle Industrial Estate, Thane (West), Thane – 400604, Maharashtra

 

 

Tel. No.:

91-22-42489500

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

09.05.2003

 

 

Com. Reg. No.:

11-140373

 

 

Capital Investment / Paid-up Capital :

Rs. 2.981 Million

 

 

CIN No.:

[Company Identification No.]

U51420MH2003PTC140373

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAECA5521B

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Distributor, Dealer, Stockiest, Agents, Indentor, Trader, Exporter, Importer, Wholesaler, Bulk Importer with expanded warehouse sales related Steel and Metal products including Stainless Steel of various grades and sizes and to provide end to end solutions.

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (36)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “Arcelor Foundation Solutions BV, Luxembourg”. It is well established company having moderate track record.

 

Management has witnessed consecutive losses resulting into accumulation of the same, further leading to erosion of its networth coupled with huge liabilities to be paid off and highly working capital intensive operations.

 

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

 

In view of experienced promoters, the company can be considered for business dealings with caution.

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

NOT AVAILABLE

 

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 31-03-2014.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Rajeev

Designation :

Office Executive

Contact No.:

91-22-42489504

Date :

25.04.2015

 

 

LOCATIONS

 

Registered/ Sales Office :

Unit No. 202-A, 2ND Floor, Dosti Pinnacle, Plot No. E-7, Road No. 22, Wagle Industrial Estate, Thane (West), Thane – 400604, Maharashtra, India

Tel. No. :

91-22-42489500

Fax No. :

91-22-42489555

E-Mail :

ketan.vyas@arcelormittal.com

amdsindia@arcelmittal.com

dharmendra.jain@arcelmittal.com

rahul.agrawal@arcelormittal.com

Website :

www.ds.arcelormittal.com

 

 

Other Sales Offices:

Located at

 

·         Chennai

·         Kolkata

·         Ahmedabad

·         Hyderabad

·         Faridabad

 

 

DIRECTORS

 

As on 30.09.2014

 

Name :

Mr. Anant Badjatya

Designation :

Additional Director

Address :

Ali Majid Zeki Hameed, 21, 684-Al Barsha South Fifth, Post Box 8386, Dubai, United Arab Emirates

Date of Birth/Age :

15.04.1977

Date of Appointment :

08.12.2014

DIN No. :

07035836

 

 

Name :

Mr. Kalyan Ghosh

Designation :

Director

Address :

Flat No. 24, 6th Floor, 39, Dr. Sundari - Mohan Avenue, Kolkata - 700014, West Bengal, India

Date of Birth/Age :

07.12.1955

Date of Appointment :

30.09.2014

DIN No. :

06444120

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Company/ LLP Status

Defaulting status

1

U74210WB2008PTC128082

ARCELORMITTAL DESIGN AND ENGINEERING CENTRE PRIVATE LIMITED

Director

30-09-2013

25-03-2013

Active

NO

2

U51420MH2003PTC140373

ARCELORMITTAL DISTRIBUTION SOLUTIONS INDIA PRIVATE LIMITED

Director

30-09-2014

10-09-2014

Active

NO

 

 

Name :

Christophe Paul Claude Jacamon

Designation :

Director

Address :

37, Rue Pierre Krier, Bereldange, 4260, Luxembourg

Date of Birth/Age :

16.01.1971

Date of Appointment :

30.09.2013

DIN No. :

06454416

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Company/ LLP Status

Defaulting status

1

U27107MH2007PTC176013

ARCELORMITTAL DHAMM PROCESSING PRIVATE LIMITED

Director

27-09-2013

20-03-2013

Active

NO

2

U51420MH2003PTC140373

ARCELORMITTAL DISTRIBUTION SOLUTIONS INDIA PRIVATE LIMITED

Director

30-09-2013

22-03-2013

Active

NO

 

 

Name :

Johannes Frans Nathanael De Schrijiver

Designation :

Director

Address :

Massenhovensesteenweg 37-D, Broechem, 2520, Belgium

Date of Birth/Age :

04.11.1967

Date of Appointment :

30.09.2013

DIN No. :

06454423

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Company/ LLP Status

Defaulting status

1

U27107MH2007PTC176013

ARCELORMITTAL DHAMM PROCESSING PRIVATE LIMITED

Director

26-05-2014

20-03-2013

Active

NO

2

U51420MH2003PTC140373

ARCELORMITTAL DISTRIBUTION SOLUTIONS INDIA PRIVATE LIMITED

Director

30-09-2013

22-03-2013

Active

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajeev

Designation :

Office Executive

 

 

Name :

Mr. Lalit Kumar

Designation :

Head of General Stockholding

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Names of Shareholders

No. of Shares

 

Arcelor Foundation Solutions B.V., Netherlands

298138

Kalyan Ghosh Nominee of Arcelor Foundation Solutions B.V., Netherlands

1

Total

298139

 

 

As on 30.09.2014

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Foreign holdings (Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Distributor, Dealer, Stockist, Agents, Indentor, Trader, Exporter, Importer, Wholesaler, Bulk Importer with expanded warehouse sales related Steel and Metal products including Stainless Steel of various grades and sizes and to provide end to end solutions.

 

 

Products :

Item Code No. (ITC Code)

Product Description

72082510

HR Plate

72253090

HR Coils

73011000

Sheet Piles

72163100

Other Steel Structure / Section

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

--

 

 

Imports :

--

 

 

Terms :

--

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (with Designation):

Not Divulged

Contact Number:

Not Divulged

Since How Long Known:

Not Divulged

Maximum Limit Dealt:

Not Divulged

Experience :

Not Divulged

Remarks :

Not Divulged

 

 

Customers :

Reference:

Not Divulged

Name of the Person (with Designation):

Not Divulged

Contact Number:

Not Divulged

Since How Long Known:

Not Divulged

Maximum Limit Dealt:

Not Divulged

Experience :

Not Divulged

Remarks :

Not Divulged

 

 

No. of Employees :

Not Divulged

 

 

Bankers :

Bank Name:

Not Divulged

Branch:

Not Divulged

Name of the Person (with Designation):

Not Divulged

Contact Number:

Not Divulged

Name of Account Holder:

Not Divulged

Account Number:

Not Divulged

Account Since (Date/ Year of A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks:

Not Divulged

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Tower 3, 27th, 32nd Floor, Indiabulls Finance Centre, Elphinstone Mill Compound, Senapati Bapat Marg, Elphinstone (West), Mumbai - 400013, Maharashtra, India

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

AABFD7919A

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding Company :

Arcelor Foundation Solutions BV, Netherlands

 

 

Ultimate Holding Company :

ArcelorMittal SA, Luxembourg

 

 

Fellow Subsidiary Company :

·         ArcelorMittal International Luxembourg

·         ArcelorMittal Commercial R.P.S. Sarl

·         Dubai Steel Trading Company LLC

·         Rozak Demir Profil TIC VE SAN A S

·         Aperam Stainless Services and Solutions International

·         ArcelorMittal Singapore Private Limited

·         ArcelorMittal FCE Celik Ticaret A.S

·         ArcelorMittal Construction France

·         ArcelorMittal Flat Carbon Europe SA

·         ArcelorMittal Dhamm Processing Private Limited

CIN No. :U27107MH2007PTC176013

·         ArcelorMittal Proj e c t s Netherlands

·         ArcelorMittal International Steel Trading (Shanghai) Co. Limited

·         ArcelorMittal International FZE

·         ArcelorMittal India Private Limited

CIN No.: U27100JH2006PTC012287

 

 

CAPITAL STRUCTURE

 

As on 30.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,000,000

Equity Shares

Rs.10/- each

Rs. 10.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

298,139

Equity Shares

Rs.10/- each

Rs. 2.981 Million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

2.981

2.981

2.981

(b) Reserves & Surplus

(427.204)

78.127

173.174

(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)

(424.223)

81.108

176.155

 

 

 

 

(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

147.711

(d) Long-Term Provisions

11.746

8.188

0.788

Total Non-Current Liabilities (3)

11.746

8.188

148.499

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term Borrowings

1818.362

557.418

231.710

(b) Trade Payables

1240.987

9949.075

6950.023

(c) Other Current Liabilities

45.254

106.472

203.146

(d) Short-Term Provisions

1.139

0.706

0.505

Total Current Liabilities (4)

3105.742

10613.671

7385.384

 

 

 

 

TOTAL

2693.265

10702.967

7710.038

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-Current Assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible Assets

45.593

57.713

50.464

(ii) Intangible Assets

0.754

1.256

0.400

(iii) Capital Work-in-progress

0.000

0.000

1.428

(iv) Intangible Assets under Development

0.000

0.000

0.000

(b) Non-Current Investments

0.000

0.000

0.000

(c) Deferred Tax Assets (net)

0.000

59.925

82.448

(d) Long-Term Loan and Advances

92.083

571.724

110.555

(e) Other Non-Current Assets

0.000

0.100

3.070

Total Non-Current Assets

138.430

690.718

248.365

 

 

 

 

(2) Current Assets

 

 

 

(a) Current Investments

0.000

0.000

0.000

(b) Inventories

1467.607

8528.520

4251.884

(c) Trade Receivables

477.436

1123.785

1133.917

(d) Cash and Cash Equivalents

50.757

26.697

900.088

(e) Short-Term Loans and Advances

559.012

332.926

1174.003

(f) Other Current Assets

0.023

0.321

1.781

Total Current Assets

2554.835

10012.249

7461.673

 

 

 

 

TOTAL

2693.265

10702.967

7710.038

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

11368.330

9885.040

8118.550

 

 

Other Income

67.960

360.300

63.710

 

 

TOTAL                                     (A)

11436.290

10245.340

8182.260

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Sold

10589.750

9803.200

7749.200

 

 

Employee benefits expense

96.590

93.230

58.340

 

 

Other Expenses

1039.150

278.030

441.420

 

 

TOTAL                                     (B)

11725.490

10174.460

8248.960

 

 

 

 

 

 

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

(289.200)

70.880

(66.700)

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

125.640

130.250

182.920

 

 

 

 

 

 

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

(414.840)

(59.370)

(249.620)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

24.850

13.160

5.790

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)                (G)           

(439.690)

(72.530)

(255.410)

 

 

 

 

 

Less

TAX                                                                  (H)

65.640

22.520

(82.110)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX (G-H)                  (I)

(505.330)

(95.050)

(173.300)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(124.580)

(29.530)

143.770

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(629.910)

(124.580)

(29.530)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Services

49.817

47.375

14.464

 

 

Sales

194.180

16.986

3.585

 

TOTAL EARNINGS

243.997

64.361

18.049

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(1695.00)

(319.00)

(630.17)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

(4.45)

(0.96)

(2.13)

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

(2.54)

0.72

(0.82)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(16.33)

(0.68)

(3.35)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

1.04

(0.89)

(1.45)

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

(4.29)

6.87

1.32

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.82

0.94

1.01

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

2.981

2.981

2.981

Reserves & Surplus

173.174

78.127

(427.204)

Net worth

176.155

81.108

(424.223)

 

 

 

 

long-term Borrowings

0.000

0.000

0.000

Short-term Borrowings

231.710

557.418

1818.362

Total borrowings

231.710

557.418

1818.362

Debt/Equity ratio

1.315

6.873

(4.286)

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

8118.550

9885.040

11368.330

 

 

21.759

15.005

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

8118.550

9885.040

11368.330

Profit

(173.3000

(95.050)

(505.330)

 

(2.13%)

(0.96%)

(4.45%)

 

 

 

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

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

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

No

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from banks

1818.362

557.418

Total

1818.362

557.418

 

 

CORPORATE INFORMATION

 

Subject is a Private Limited Company incorporated on 9th May, 2003. Its main object is to carry on the business as Distributors, Dealers, Stockists, Agents, Indentors, Traders, Exporters, Importers, Wholesalers, Bulk Importers with expanded warehouse sales related Steel and Metal products including Stainless Steel of various grades and sizes and to provide end to end solutions for the business stated therein.

 

 

BUSINESS OPERATIONS

 

Total Revenue from Operations of the company increased by nearly 15% to Rs. 11,368 Million during the year.

 

During the year, the company suffered significant losses due to depreciation of INR against Euro and USD, as well as higher provision on account of doubtful debts and advances resulting in net worth of the company being completely eroded. The company continues to enjoy support from its parent company and with realigned businesses expects to turn around in the next few years.

 

The company has worked towards consolidating its business network and made efforts to improve margins and inventory realization during the period. The warehouse network has been carefully realigned with new scenarios on imports, BIS licenses from group mills and business guidelines from the group. The strategic locations of companys stockyards and sales offices continue to provide high-quality and just-in-time services to its valuable customer base.

 

The company intends to further align with group mills and strengthen its activity in focused business activities such as foundation solutions, Project related activities and Oil and Gas sectors. During this period, organization has started and developed random rebar distributions activity across the country which has been well received and is progressing as planned. The inventory cycles have improved further and stock mix has been improved to suit business needs.

 

 

CONTINGENT LIABILITIES:

 

PARTICULARS

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

 

 

 

In respect of service tax matters relating to applicability of service tax on commission received in foreign currency during the period April 2005 to January 2009 for which the Company has filed an appeal with the Customs, Excise and Service Tax Appellate Tribunal, Mumbai against the order of Commissioner of Central Excise and Service Tax

(Appeals)

12.755*

12.755*

 

*including interest of Rs. 1.899 Million.

 

 

FIXED ASSETS

 

Tangible Assets

·         Leasehold Improvements

·         Plant and Equipment

·         Computers

·         Vehicles

·         Office

·         Equipment

·         Furniture and Fixtures

·         Sheet Piles

 

Intangible Assets

·         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. 63.33

UK Pound

1

Rs. 96.52

Euro

1

Rs. 68.93

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MRI

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILITY

1~10

3

--LIQUIDITY

1~10

4

--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

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

 

36

 

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.