MIRA INFORM REPORT

 

 

Report No. :

349417

Report Date :

13.11.2015

 

IDENTIFICATION DETAILS

 

Name :

BHANDER POWER LIMITED (w.e.f. 16.07.1997)

 

 

Formerly Known As :

ESSAR POWER (GWALIOR) LIMITED

 

 

Registered Office :

27th KM, Surat Hazira Road,  Hazira,  Surat – 394270, Gujarat

Tel. No.:

91-261-668 2055

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

04.07.1995

 

 

Com. Reg. No.:

04-065146

 

 

Capital Investment / Paid-up Capital :

Rs.3784.525 Million

 

 

CIN No.:

[Company Identification No.]

U31101GJ1995PLC065146

 

 

IEC No.:

0304065170

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACB6693B

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in business of Power Generation.

 

 

No. of Employees :

Information declined by the management 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (32)

 

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 ‘ESSAR POWER LIMITED’. The company has tied-up under long-term take or pay agreement with ESSAR STEEL INDIA LIMITED and other Essar group companies with a fixed annual charges.

 

The company has reported dip of 17.83% on revenue of Rs.3270.000 million against the revenue of Rs.398.000 million of previous year (2013). The lower revenue during current year was mainly on account of download revision in PPA charges with Essar Steel India Limited.

 

The ratings takes into consideration deterioration in the financial profile of the company as reflected by deterioration in the credit profile of its major off-taker resulted in a stress on the liquidity of the company due to a delay in the recovery of receivables.

 

The rating also factors in moderation in credit profile of the promoter and project execution risk related to conversion of gas-based power plant to coal-based power plant.

 

Trade relations are reported as fair. Payments are reported to be slow.

 

In view of weak holding entity profile, the company can be considered or business dealings with some caution. 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long-term Bank Facilities = BB (Suspended)

Rating Explanation

Inadequate-credit-quality and high credit risk.

Date

07.04.2015

 

Rating Agency Name

CARE

Rating

Short-term Bank Facilities = A4 (Suspended)

Rating Explanation

Minimal degree of safety of safety and very high credit risk.

Date

07.04.2015

 

 

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 31-03-2015.

 

 

INFORMATION DENIED

 

MANAGEMENT NON COOPERATIVE (Tel No.:91-261-668 2055)

 

 

LOCATIONS

 

Registered Office :

27th KM, Surat Hazira Road,  Hazira,  Surat – 394270, Gujarat, India

Tel. No.:

91-261-668 2055/ 668-2400

Fax No.:

91-261-668 2747

E-Mail :

powersec@essar.com

Website :

www.essar.com  

 

 

Corporate Office :

Equinox Business Parks, Tower II, Bandra Kurla Complex, LBS Marg, Kurla (West) , Mumbai – 400070, Maharashtra, India

 

 

DIRECTORS

 

AS ON 30.09.2014

 

Name :

Stansilaus Joseph Coelho

Designation :

Director

Address :

65, IV B Cross High Colony, RMV Extension, Bangalore – 560094, Karnataka, India

Date of Birth/Age :

11.03.1933

Date of Appointment :

30.09.2014

DIN No.:

00176467

 

 

Name :

Mr. Tushar Shankerlal Bhatt

Designation :

Director

Address :

D – 3/5, Nand Niketan, Hazira Niwas, Surat – 394270, Gujarat, India

Date of Birth/Age :

30.09.1954

Date of Appointment :

30.09.2015

DIN No.:

00008101

 

 

Name :

Mr. Vijayabhaskara Kalakota Reddy

Designation :

Director

Address :

3702-C, Lodha Bellissimo, Apollo Mills Compound., N M Joshi Marg, Mahalaxmi, Mumbai - 400011, Maharashtra, India

Date of Birth/Age :

01.07.1961

Date of Appointment :

30.07.2009

DIN No.:

01683467

 

 

Name :

Mr. Rajendra Kumar Sethi

Designation :

Director

Address :

B-6, Ganga Jyoti Building, Plot No. 17, Bangur Nagar, Link Road, Goreaon (West), Mumbai – 400090, Maharashtra, India

Date of Birth/Age :

11.03.1963

Date of Appointment :

30.09.2013

DIN No.:

01737511

Other Directorship:

Name :

Padmanabhan Sugavanam

Designation :

Director

Address :

No.119, Smr Vinaycascades, Near Jagadish Nagar, Thimmarayappa Garden, Thippasandra Post, Bangalore - 560075, Karnataka, India

Date of Birth/Age :

03.06.1945

Date of Appointment :

30.09.2014

DIN No.:

03229120

 

 

Name :

Mohanlal Ramgopal Sharma

Designation :

Director

Address :

K-205, Sector-19, Gandhinagar - 382019, Gujarat, India

Date of Appointment :

30.09.2014

DIN No.:

02724685

 

Name :

Sonal Arora Kohli

Designation :

Director

Address :

101-A-Wing, Mercury Chs, 4th Lane, Lokhandwala, Andheri (West), Mumbai - 400053, Maharashtra, India

Date of Appointment :

28.09.2015

DIN No.:

07140097

 

 

KEY EXECUTIVES

 

Name :

Sanjyot Nilesh Rangnekar

Designation :

Secretary

Address :

B 202 Rustomjee Astraea, Near Lodha Paradise, Majiwada, Thane - 400601, Maharashtra, India

Date of Appointment :

23.05.2014

PAN No:

AANPR5686C

 

 

Name :

Rajendra Kumar Sethi

Designation :

Chief Executive Officer

Address :

B- 6 Ganga Jyoti Bldg. Plot - 17,, Bangur Nagar, Link Rd. Goregaon (West), Mumbai - 400090, Maharashtra, India

Date of Appointment :

03.09.2015

PAN No:

AANPS5779H

 

 

MAJOR SHAREHOLDERS

 

AS ON 30.09.2014

 

Names of Shareholders

 

No. of Shares

Essar Power Limited, India

 

274639440

Essar Steel India Limited, India

 

96905000

Essar Projects (India) Limited, India 

 

772000

Essar Bulk Terminal Limited, India

 

386000

Essar Power Limited, India and Naveen Maheshwari

 

10

Essar Power Limited, India and V T Joshi

 

10

Essar Power Limited, India and Nitin Patil

 

10

Essar Power Limited, India and Sandip Sinha

 

10

Essar Power Limited, India and R R Pillai

 

10

Essar Power Limited, India and T Rajmohan

 

10

Total

 

372702500

 

 

Names of Preference Shareholders

 

No. of Shares

Essar Power Limited, India

 

5750000

Total

 

5750000

 

 

Equity Share Break up (Percentage of Total Equity)

 

AS ON 30.09.2014

 

Category

Percentage

Bodies corporate

100.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in business of Power Generation.

 

 

Products :

Power Generation

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

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 :
  • State Bank of India

 

Banker Name

IDFC Bank Limited

Branch Address

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

 

 

Facilities :

(Rs. In Million)

 

SECURED LOAN

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWINGS

 

 

Rupee term Loan

 

 

from financial institutions

4750.000

5750.000

SHORT TERM BORROWINGS

 

 

Working capital facility

 

 

From bank – cash credit facilities

229.800

224.800

Total

4979.800

5974.800

 

otes :

 

Long Term Borrowings

 

  1. Securities provided to lenders

 

Rupee term loan is secured by first ranking on all the company’s assets immovable and movable, tangible and intangible, both present and future, assignment of project documents and insurance policies. First charge on debt service reserve. The facility are additionally secured by pledge of certain equity shares of the company held by Essar Power Limited.

 

  1. Terms of repayment and interest rate of rupee term loans   

 

Rupee term loan is repayable in 28 equal quarterly installment of Rs.250.000 Million each staring from February 15, 2013

 

  1. The classification of loans between current liabilities and non-current liabilities continuous based on repayment schedule under respective agreements as no loans have been recalled due to non-compliance of conditions under any of the loan agreements loan agreements. This is in accordance with the guidance issued by the institute of chartered accountant of India on revised schedule Vi to the Companies Act, 1956 principle installment due and interest accrued and interest accrued and due on borrowings outstanding for 45 days and 17 to 76 respectively as at March 31, 2013 have been paid subsequently to balance sheet date.

 

Short Term Borrowings

 

  1. Securities provided to lenders

 

Working capital facility from banks is secured / to be secured by a first charges by hypothecation of inventories and receivable and a second charges on fixed assets of the company.

 

Financial Institution :

IL And FS Trust Company Limited, IL and FS Financial Centreplot No C22 G Block Bandra, Kurla Complex Bandra East, Mumbai - 400051, Maharashtra, India

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Heritage, 3rd Floor, Near Gujarat Vidhyapith, Off. Ashram Road, Ahmedabad – 380014, Gujarat, India

Tel. No.:

91-79-27582542/ 27582543

Fax No.:

91-79-27582551

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

AABFD7919A

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Ultimate Holding Company:

Essar Global Fund Limited (formally known as Essar Global Limited) (EGL)

 

 

Holding Company :

Essar Power Limited (EPOL)

 

 

Fellow Subsidiary :
  • Essar Power Gujarat Limited
  • Navbharat Power Private Limited
  • Vadinar Power Private Limited
  • Essar Power M P Limited
  • Essar Power Hazira Limited
  • Essar Power Transmission Company Limited

 

 

Enterprises commonly controlled and influences by major shareholders/ director of the company : 

  • Essar Steel India Limited (formally known as Essar Steel Limited)
  • Essar Bulk Terminal Limited
  • Essar Projects (India) Limited
  • Essaer Heavy Engineering Services, a division of EPIL
  • Acgis Limited

 

 

CAPITAL STRUCTURE

 

AS ON  30.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

4000000000

Equity Shares

Rs.10/- each

Rs.40000.000 Million

1000000000

Preference Shares

Rs.10/- each

Rs.10000.000 Million

 

Total

 

Rs.50000.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

372702500

Equity Shares

Rs.10/- each

Rs.3727.025 Million

5750000

Preference Shares

Rs.10/- each

Rs.57.500 Million

 

Total

 

Rs.3784.525 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

3784.500

3784.500

3784.500

(b) Reserves & Surplus

6013.300

4826.800

4454.100

(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)

9797.800

8611.300

8238.600

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

4750.000

5750.000

6750.000

(b) Deferred tax liabilities (Net)

50.300

67.700

12.800

(c) Other long term liabilities

1.100

1.800

9.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

4801.400

5819.500

6771.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

229.800

398.800

0.000

(b) Trade payables

62.900

148.600

130.900

(c) Other current liabilities

1423.400

1479.200

291.900

(d) Short-term provisions

189.300

3.300

4.600

Total Current Liabilities (4)

1905.400

2029.900

427.400

 

 

 

 

TOTAL

16504.600

16460.700

15437.800

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

4011.300

4666.800

6936.900

(ii) Intangible Assets

0.100

0.200

0.000

(iii) Capital work-in-progress

7.600

2.800

49.200

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

3900.000

3900.000

3900.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

4467.900

1507.500

1471.700

(e) Other Non-current assets

11.600

15.600

20.800

Total Non-Current Assets

12398.500

10092.900

12378.600

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

414.200

369.100

319.900

(c) Trade receivables

2750.700

5046.700

1962.500

(d) Cash and cash equivalents

192.000

190.700

330.500

(e) Short-term loans and advances

709.800

719.600

436.100

(f) Other current assets

39.400

41.700

10.200

Total Current Assets

4106.100

6367.800

3059.200

 

 

 

 

TOTAL

16504.600

16460.700

15437.800

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

3245.200

3966.000

3723.300

 

Other Income

28.200

17.400

70.600

 

TOTAL (A)

3273.400

3983.400

3793.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of fuel

43.000

103.300

78.000

 

Transmission charges

17.300

31.700

0.100

 

Employee Benefits Expenses

222.600

210.200

51.700

 

Other expenses

0.000 

0.000

388.000

 

TOTAL

282.900

345.200

517.800

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

2990.500

3638.200

3276.100

 

 

 

 

 

Less

FINANCIAL EXPENSES

855.900

785.700

756.700

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

2134.600

2852.500

2519.400

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

655.600

2317.900

814.300

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

1479.000

534.600

1705.100

 

 

 

 

 

Less

TAX

292.500

161.900

341.100

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

1186.500

372.700

1364.000

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

118.65

37.27

3.67

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

1250.000

1250.000

250.000

Cash generated from operations

NA

NA

NA

Net cash from operating activities

5501.700

16.700

1593.300

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

36.56

9.40

36.63

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

92.15

91.73

87.99

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

11.74

4.26

14.84

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.15

0.06

0.21

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.64

0.86

0.85

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.15

3.14

7.16

 

 

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

3784.500

3784.500

3784.500

Reserves & Surplus

4454.100

4826.800

6013.300

Net worth

8238.600

8611.300

9797.800

 

 

 

 

Long-term borrowings

6750.000

5750.000

4750.000

Short term borrowings

0.000

398.800

229.800

Current maturities of long-term debts

250.000

1250.000

1250.000

Total borrowings

7000.000

7398.800

6229.800

Debt/Equity ratio

0.850

0.859

0.636

 

 

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

3723.300

3966.000

3245.200

 

 

6.518

(18.174)

 

 

 

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

3723.300

3966.000

3245.200

Profit

1364.000

372.700

1186.500

 

36.63%

9.40%

36.56%

 

 

 

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

No

8

Designation of contact person

No

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

Yes

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

Yes

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

 

 

NOTE: Registered office of the company has been shifted from Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai - 400034, Maharashtra, India to the present address w.e.f. 08.03.2011

 

 

NATURE OF BUSINESS:

 

The company has set and operates a 500 MW partly dual fired combined cycle power plant at Hazira, Surat, Gujarat, India. 

 

 

FINANCIAL HIGHLIGHTS:

 

During the year, the company reported a profit after tax Rs.1190.000 Million as against Rs.370.000 Million for the previous year. The lower revenue during the current year was mainly on account of downward revision in PPA charges Essar Steel Indi Limited. In the previous year there was a revision in method of depreciation computation from Straight Line Method to Written down Value method and therefore deprecation in previous year was higher than the current year.   

 

OPERATIONAL HIGHLIGHTS:

 

During the year, the power plant availability was 98.6%, power generation was 1398.7 MUs and plant load factor was 9.1%. The power generation was low on account of power demand form captive customers.

 

 

 

UNSECURED LOAN

 

(Rs. In Million)

Particulars

As on

31.03.2014

As on

31.03.2013

SHORT TERM BORROWING

 

 

Temporary advances form holding company

0.000

174.000

Total

0.000

174.000

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10521273

23/09/2014

57,040,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BUILDING, GROUND FLOOR, 17 R KAMANI MARG,
BALLARD ESTATE, MUMBAI- 400001, MAHARASHTRA, INDIA

C21809744

2

10373782

22/07/2013 *

680,000,000.00

IL AND FS TRUST COMPANY LIMITED

IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA , KURLA COMPLEX BANDRA EAST, MUMBAI- 400051, MAHARASHTRA , INDIA

B82106642

3

10236248

25/04/2011 *

7,000,000,000.00

IL AND FS TRUST COMPANY LIMITED

IL AND FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRA, KURLA COMPLEX BANDRA EAST, MUMBAI- 400051, MAHARASHTRA , INDIA

B11053261

 

* Date of charge modification

 

 

FIXED ASSETS

·         Land

·         Building

·         Plant and Machinery

·         Computer

·         Vehicles

·         Furniture and Fixture

 

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.66.35

UK Pound

1

Rs.100.28

Euro

1

Rs.71.30

 

 

INFORMATION DETAILS

 

Information Gathered by :

KAM

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

GEET

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILITY

1~10

4

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--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

 

32

 

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.