MIRA INFORM REPORT

 

 

Report No. :

334919

Report Date :

03.08.2015

 

IDENTIFICATION DETAILS

 

Name :

L AND T GENERAL INSURANCE COMPANY LIMITED

 

 

Registered Office :

L and T House, Ballard Estate, Mumbai - 400001, Maharashtra  

Tel. No.:

91-22-6752 5656

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

27.12.2007

 

 

Com. Reg. No.:

11-177117

 

 

Capital Investment / Paid-up Capital :

Rs. 4950.000 Million

 

 

CIN No.:

[Company Identification No.]

U66030MH2007PLC177117

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUML07225B

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Insurance Related Services.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (41)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

L and T General Insurance Company Limited (L and T Insurance) is a wholly owned subsidiary of “Larsen and Toubro Limited”. It was incorporated on 27th December 2007, and it is having a satisfactory track.

 

The rating reflects strong support that company receives from its parents, strong track record over the years in the general insurance industry and its sound systems and processes.

 

L and T General Insurance Company Limited derives significant managerial, operational and funding support from “Larsen and Toubro Limited its parent company.

 

However, there are no external borrowings recorded but it recorded accumulated losses incurred from its operations.

 

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

 

In view of strong support from its holding companies and experienced promoters, the subject can be considered for business dealings with its 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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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

 

Rating Agency Name

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

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 31-03-2013.

 

 

INFORMATION DECLINED

 

Management non cooperative (Tel No.91-22-67525656)

 

 

LOCATIONS

 

Registered Office :

L and T House, Ballard Estate, Mumbai - 400001, Maharashtra, India  

Tel. No.:

91-22-67525656

Fax No.:

91-22-67525893

E-Mail :

aarti.kamath@ltinsurance.com

moorthy.vk@ltinsurance.com

 

 

Head Office :

6th Floor, City 2, Plot No. 177, CST Road, Near Bandra Kurla Telephone Exchange, Kalina, Santacruz (East), Mumbai - 400098, Maharashtra, India

Tel. No.:

91-22-61230000

 

 

Branch Office :

Located at:

  • Ahmedabad 
  • Bangalore 
  • Bhubaneshwar 
  • Coimbatore 
  • Chennai 
  • New Delhi
  • Hyderabad 
  • Kolkata 
  • Mumbai 
  • Pune 

 

 

DIRECTORS

 

As on 19.08.2014

 

Name :

Mr. Yeshwant Moreshwar Deosthalee

Designation :

Director

Address :

C/401, Chaitanya Towers Coop Hsg. Society Limited, Appa. Saheb Marathe Marg, Prabhadevi, Opp. Mamta-D, Building, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

06.09.1946

Qualification :

ACA, LLB

Date of Appointment :

27.12.2007

DIN No.:

00001698

 

 

Name :

Mr. Sivaraman Narayanaswami

Designation :

Director

Address :

Flat No.43, Kalpataru Residency, Tower A, Near Cine Planet, Sion (East), Mumbai-400022, Maharashtra, India

Date of Birth/Age :

12.04.1958

Qualification :

ACA

Date of Appointment :

27.12.2007

DIN No.:

00001747

 

 

Name :

Mr. Ramamurthi Shankar Raman

Designation :

Director

Address :

Room No. 123, 12th Floor, Kalpataru Royale, Flat No. 123, 12th Floor, Plot No. 110, Road No. 29, Off Sion Circle, Sion (East), Mumbai-400022, Maharashtra, India

Date of Birth/Age :

20.12.1958

Qualification :

ACA, Grad ICWA

Date of Appointment :

27.12.2007

DIN No.:

00019798

 

 

Name :

Mr. Mukund Manohar Chitale

Designation :

Director

Address :

4/46, Vishnuprasad Society, Shahaji Raje Marg, Vile Parle (East), Mumbai-400057, Maharashtra, India

Date of Birth/Age :

16.11.1949

Qualification :

FCA

Date of Appointment :

23.08.2010

DIN No.:

00101004

 

 

Name :

Mr. Haris Ansari

Designation :

Director

Address :

Flat No. 503, Serin Nyati Enclave, Nyati County Mohammadwadi, Pune-411028, Maharashtra, India

Date of Birth/Age :

01.04.1939

Qualification :

Post-Graduate in Science

Date of Appointment :

23.08.2010

DIN No.:

02155529

 

 

Name :

Mr. Joydeep Kumar Roy

Designation :

Whole Time Director

Address :

33, Plot-212, ‘A’ Wing, Guldev Sagar Co-Operative Housing Society Limited, R. K. Patkar Marg, Bandra (West), Near Bank of Punjab, Mumbai-400050, Maharashtra, India

Date of Birth/Age :

26.03.1967

Qualification :

Mechanical Engineer, MBA from IIM Calcutta

Date of Appointment :

23.08.2010

DIN No.:

02265690

 

 

KEY EXECUTIVES

 

Name :

Mrs. Aarti Ganesh Kamath

Designation :

Company Secretary and Chief Manager – Compliance

Address :

A/1501, Princeton, Hiranandani, Estate, G.B. Road, Thane – 400607, Maharashtra, India

Date of Birth/Age :

05.12.1976

Date of Appointment :

14.05.2012

PAN No.:

AMNPK2417Q

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 19.08.2014

 

Names of Shareholders

No. of Shares

Larsen and Toubro Limited, India

529999994

Y. M. Deodthalee

1

Prasad Vishnu Shanbhag

1

R. Shankar Raman

1

Mr. R. Sivraman

1

N. Hariharan

1

R Govindan

1

Total

530000000

 

 

As on 31.01.2015

 

Names of Allottees

No. of Shares

Larsen and Toubro Limited, India

13000000

 

As on 28.02.2015

 

Names of Allottees

No. of Shares

Larsen and Toubro Limited, India

15000000

 

As on 30.03.2015

 

Names of Allottees

No. of Shares

Larsen and Toubro Limited, India

12000000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on 19.08.2014

 

Category

Percentage

Bodies corporate

100.00

Total

100.00

 

BUSINESS DETAILS

 

Line of Business :

Providing Insurance Related Services.

 

 

Products :

Not Divulged

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Bank Name

Not Divulged

Branch

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

 

 

Auditors :

 

Name :

PKF Sridhar and Santhanam

Chartered Accountant

Address :

201, 2nd Floor, Centre Point Building, DR. Ambedkar Road, Opp. Bharatmata Cinema, Parel, Mumbai – 400012, Maharashtra, India

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

AAOFS2783G

 

 

Auditors :

 

Name :

Sharp and Tannan

Chartered Accountant

Address :

Ravindra Annexe, 194 Churchgate Reclamation, Dishaw Vachha Road, Mumbai – 400020, Maharashtra, India

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

AAAFS2967E

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding Company :

Larsen and Toubro Limited

 

 

Subsidiaries of Larsen and Toubro Limited- Holding Company :
  • L and T-Valdel Engineering Limited
  • L and T Shipbuilding Limited
  • L and T Rajkot - Vadinar Tollway Limited (formerly known as LandT Rajkot - Vadinar Tollway Private Limited)
  • PNG Tollway Limited (formerly known as PNG Tollway Private Limited)
  • L and T Plastics Machinery Limited
  • L and T Howden Private Limited
  • L and T Kobelco Machinery Private Limited
  • Larsen and Toubro Infotech Limited
  • L and T Finance Limited
  • L and T FinCorp Limited (formerly known as India Infrastructure Developers Limited)
  • L and T Infrastructure Development Projects Limited
  • L and T Panipat Elevated Corridor Limited
  • Narmada Infrastructure Construction Enterprise Limited
  • L and T Krishnagiri Thopur Toll Road Limited
  • L and T Transportation Infrastructure Limited
  • L and T Western India Tollbridge Limited
  • L and T Interstate Road Corridor Limited
  • L and T Krishnagiri Walajahpet Tollway Limited
  • L and T Devihalli Hassan Tollway Limited
  • L and T Chennai - Tada Tollway Limited
  • L and T South City Projects Limited
  • L and T Tech Park Limited
  • L and T-MHI Boilers Private Limited
  • L and T Ahmedabad-Maliya Tollway Limited
  • L and T Plastics Machinery Limited
  • L and T Urban Infrastructure Limited
  • L and T Vadodara Bharuch Tollway Limited
  • L and T MHI Turbine Generators Private Limited
  • L and T Access Financial Advisory Services
  • L and T Finance Holdings Limited
  • L and T Halol-Shamlaji Tollway Limited
  • L and T Metro Rail (Hyderabad) Limited
  • L and T Housing Finance Limited
  • L and T Western Andhra Tollway Limited
  • L and T Sargent and Lundy Limited
  • Bhilal Power Supply Company Limited
  • EWAC Alloys Limited
  • L and T Valves Limited
  • L and T Construction Equipment Limited (Formerly Known as L and T Komatsu Limited)
  • L and T Finance Holding Company
  • L and T Geostructure LLP
  • Tractor Engineering Limited
  • L and T Great Eastern Highway Limited

 

 

Associates of Larsen and Toubro Limited-Holding Company :
  • L and T-Komatsu Limited
  • Salzer Electronics Limited
  • Audco India Limited
  • L and T-Chiyoda Limited
  • JSK Electricals Private Limited
  • Feedback Infrastructure Services Private Limited

 

 

Joint Ventures of Larsen and Toubro Limited-Holding Company :
  • L and T-AM Tapovan Joint Venture
  • The Dhamra Port Company Limited
  • Metro Tunelling Delhi-L and T SUCG JV

 

 

CAPITAL STRUCTURE

 

 

As on 19.08.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

750000000

Equity Shares

Rs.10/- each

Rs.7500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

620000000

Equity Shares

Rs.10/- each

Rs.6200.000Million

 

 

 

 

 

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

600000000

Equity Shares

Rs.10/- each

Rs.6000.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

495000000

Equity Shares

Rs.10/- each

Rs.4950.000Million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

SHAREHOLDERS FUNDS

 

 

 

Share Capital

4950.000

4150.000

3250.000

Reserves and Surplus

0.000

0.000

0.000

Fair Value Change Account

2.046

2.942

1.008

Borrowings

0.000

0.000

0.000

 

 

 

 

TOTAL

4952.046

4152.942

3251.008

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

Investments

2938.264

2504.650

1853.144

Loans

--

0.000

0.000

Fixed Assets (Net) including Capital work in progress

533.131

841.839

826.350

Current Assets:

 

 

 

Cash and Bank Balances

139.259

79.505

82.917

Advances and Other Assets

1079.491

777.046

349.405

Sub Total [A]

1218.750

856.551

432.322

 

 

 

 

Current Liabilities

2312.838

1815.639

930.558

Provisions

1083.546

900.943

655.938

Sub Total [B]

3406.384

2716.582

1594.496

Net Current Assets [C] = [ A - B]

(2187.634)

(1860.031)

(1162.174)

Miscellaneous Expenditure (to the extent not written off or adjusted)

0.000

0.000

 

Debit balance in Profit and Loss Account

3668.285

2666.484

1733.688

TOTAL

4952.046

4152.942

3251.008

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

OPERATING PROFIT/ (LOSS)

 

 

 

 

Fire Insurance

(17.439)

(34.333)

(71.388)

 

Marine Insurance

(12.237)

(19.074)

(48.074)

 

Miscellaneous Insurance

(1103.101)

(986.619)

(1003.171)

 

 

(1132.777)

(1040.026)

(1122.633)

 

 

 

 

 

 

INCOME FROM INVESTMENTS

 

 

 

 

Interest, Dividend & Rent – Gross

87.549

88.033

59.564

 

Profit on sale of investments

15.564

23.524

9.959

 

Less: Loss on sale of investments

(0.003)

(0.059)

(1.082)

 

Profit on sale of Fixed Assets

33.819

 

 

 

OTHER INCOME

0.020

0.070

0.118

 

TOTAL (A)

(995.828)

(928.458)

(1054.074)

 

PROVISIONS (Other than taxation)

 

 

 

 

For diminution in the value of investments

--

--

--

 

For doubtful debts

--

--

--

 

Others (to be specified)

--

--

--

 

OTHER EXPENSES

 

 

 

 

Expenses other than those related to Insurance Business

5.413

3.818

4.884

 

Bad debts written off

--

--

-

 

Directors fees

0.560

0.520

0.560

 

TOTAL (B)

5.973

4.338

5.444

 

 

 

 

 

Less

Profit/(Loss) Before Tax (A-B)

(1001.801)

(932.796)

(1059.518)

 

Provision for Taxation (pertaining to earlier years)

--

--

0.120

 

 

 

 

 

 

Profit/(Loss) After Tax

(1001.801)

(932.796)

(1059.620)

 

 

 

 

 

 

Balance of profit/(loss) brought forward from last year

(2666.484)

(1733.688)

(80.865)

 

 

 

 

 

 

Balance carried forward to Balance Sheet

(3668.284)

(2666.484)

(674.068)

 

 

 

 

 

 

Earnings Per Share (Rs.)

(2.27)

(2.47)

(26.05)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

NA

NA

NA

Net cash flow from operating activity

(679.201)

(216.620)

86.328

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

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

(1054.074)

(928.458)

(995.828)

 

 

(11.917)

7.256

 

 

 

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

(1054.074)

(928.458)

(995.828)

Profit

(1059.620)

(932.796)

(1001.801)

 

100.53%

100.47%

100.60%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

No

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

BACKGROUND:

 

L and T General Insurance Company Limited (‘the Company’) was incorporated on December 27, 2007 as a Company under Companies Act,1956 (“the Act”)and is a wholly owned subsidiary of L&T Ltd. The Company obtained regulatory approval to undertake General Insurance business on July 9, 2010 from the Insurance Regulatory and Development Authority (‘IRDA’) and has also obtained its certificate of renewal of registration which is valid till March 31, 2015. The Company commenced its commercial operations on October 1, 2010.

 

 

BUSINESS AND OPERATIONAL OVERVIEW

 

The Company in its third full year of operations achieved a Gross Written Premium (GWP) of R 270 crore by selling more than 2,60,000 policies.  Commercial segment accounted for R80 crore out of which 44% is contributed by Fire closely followed by Engineering at 23%.

 

In line with the industry, Motor remains the largest contributor to GWP with a share of 52%. Health and other Commercial LoBs’ share the rest 48% with 19% and 29% of the total GWP respectively.

 

The Company gives emphasis on efficient policy issuance using high level technology platform. Policy issuance TAT (Turn Around Time) shows that 92% of the retail non-micro policies were issued on the same day of application. The Company has a pan India presence with 14 branches. During the year, the Company also made significant foray into Individual Health.

 

 

INDUSTRY SCENARIO AND OUTLOOK

 

Indian general insurance industry continues to show an impressive growth in top line and has reported a growth of 12 per cent from R 690740.000 Million in FY 2013 to R 77543.000 Million in FY 2014. All lines of business grew at a lower rate than previous year resulting in a lower industry growth which could be primarily attributed to lower GDP growth. The growth in premium for private players is 15% as compared to 10% for public players. Consequently the market share of private players grew from 43% to 44%. Motor and Health LoBs are the fastest growing segment and now accounts for 44% and 23% of the industry’s GWP.

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

 

 

REVENUE ACCOUNT

(Rs. In Millions)

Particular

For the Year ended 31.03.2014

For the year ended 31.03.2013

Premiums earned (Net)

1780.294

1196.242

 

 

 

Profit/ (Loss) on sale/redemption of Investments

21.358

14.419

 

 

 

Others (Miscellaneous income)

--

--

 

 

 

Interest Income

166.552

105.715

TOTAL (A)

1968.204

1316.376

 

 

 

Claims Incurred (Net)

1524.988

1183.049

 

 

 

Commission

(14.665)

57.071

 

 

 

Operating Expenses related to Insurance Business

1597.951

1204.266

 

 

 

Premium Deficiency

(7.293)

(87.984)

TOTAL (B)

3100.981

2356.402

Operating Profit/(Loss) (A - B)

(1132.777)

(1040.026)

APPROPRIATIONS

 

 

Transfer to Shareholders’ Account

(1132.777)

(1040.026)

 

 

 

TOTAL (C)

(1132.777)

(1040.026)

 

 

FIXED ASSETS

 

  • Goodwill
  • Land Freehold
  • Leasehold Property
  • Building
  • Furniture and Fitting
  • Information Technology Equipment
  • Vehicles
  • Office Equipment
  • Others

 

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 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 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.64.00

UK Pound

1

Rs.99.83

Euro

1

Rs.70.07

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

KSH

 

 

Report Prepared by :

SUJ

 

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

6

--PROFITABILITY

1~10

--

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

--

--CREDIT LINES

1~10

5

--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

 

41

 

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.