MIRA INFORM REPORT

 

 

Report No. :

354652

Report Date :

20.10.2015

 

IDENTIFICATION DETAILS

 

Name :

GRASIM BHIWANI TEXTILES LIMITED

 

 

Registered Office :

409, Cotton Exchange Building, Kalbadevi Road, Mumbai - 400002, Maharashtra

Tel. No.:

91-1664-242577

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

11.09.2007

 

 

Com. Reg. No.:

11-173993

 

 

Capital Investment / Paid-up Capital :

Rs.200.500 Million

 

 

 

CIN No.:

[Company Identification No.]

U17120MH2007PLC173993

 

 

IEC No.:

0307062732

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AACCG9347F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in manufacturing polyester viscose fabric

 

 

No. of Employees :

Information declined by the Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (72)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

usd 2800000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of ‘Grasim Industries Limited’. It is engaged in manufacturing polyester viscose fabric.

 

For the financial year ended 2014, company has reported 10% sales turnover growth as compared to previous sales turnover and it has maintained satisfactory profitability margins at 4.12% during the year under a review.

 

Rating derives strength from well experienced management team and strong financial flexibility from parent entity along with integrated nature of textiles manufacturing operations, strong distribution network and well – established client base.

 

Rating also takes into consideration its healthy financial profile marked by its comfortable capital structure along with adequate liquidity position and sound debt coverage indicators.  

 

Trade relations are reported as fair. Payments are reported to be regular and as per commitment.

 

In view of aforesaid, 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.

 

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

CARE

Rating

Long term Bank Facilities = AAA

Rating Explanation

Highest degree of safety and carry lowest credit risk

Date

08.01.2015

 

Rating Agency Name

CARE

Rating

Short term Bank Facilities = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk 

Date

08.01.2015

 

 

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 DECLINED

 

Management non-corporation (91-1664-243126)

 

LOCATIONS

 

Registered Office :

409, Cotton Exchange Building, Kalbadevi Road, Mumbai - 400002, Maharashtra, India

Tel. No.:

91-1664-242577

Fax No.:

91-1664-242575

E-Mail :

roopesh.kumar@adityabirla.com

Website :

www.grasimbhiwanitextiles.com

 

 

Factory :

Bhiwani Textiles Mills, Bhiwani – 127021, Haryana, India

Tel. No.:

91-1664-243126, 242577-79 (3 lines)

Fax No.:

91-1664-242575, 2433717

 

 

Marketing Office :

A-222, Okhla Phase I, New Delhi, India

Tel. No.:

91-11-40587080 

 

 

DIRECTORS

 

As on 22.07.2014

 

Name :

Mr. Thomas Varghese

Designation :

Whole Time Director

Address :

Flat No. 502, Park Lane Apartment, 26th Road, TIPS-III, St. Theresa’s School, Bandar (West), Mumbai, Maharashtra, India

Date of Birth/Age :

03.03.1961

Date of Appointment :

20.04.2012

DIN No.:

00017423

 

 

Name :

Mr. Bhupendranath Vidyanath Bhargava

Designation :

Director

Address :

B/1201, Gulmohar Apartments, Ceaser Road, Amboli, Andheri (West), Mumbai -  400 056, Maharashtra, India

Date of Birth/Age :

16.04.1936

Qualification :

M.Com., LL.B.

Date of Appointment :

20.12.2007

DIN No.:

00001823

 

 

Name :

Mr. Adesh Kumar Gupta

Designation :

Director

Address :

701, Tagore Avenue, Tagore Road, Santacruz, Mumbai – 400 054, Maharashtra, India

Date of Birth/Age :

11.09.1956

Qualification :

B.Com., FCA, FCS

Date of Appointment :

21.04.2009

DIN No.:

00020403

 

 

Name :

Mr. Shailendra Kumar Jain

Designation :

Director

Address :

Grasim Staff Colony, Birlagram Nagda, Ujjain – 456 331, Madhya Pradesh, India

Date of Birth/Age :

04.12.1943

Qualification :

B.Sc., B.E. (Hons.), SM (MIT)

Date of Appointment :

11.09.2007

DIN No.:

00022454

 

 

Name :

Mr. Girish Mohanlal Dave

Designation :

Director

Address :

Dave and Girish and Company Advocates, 1st Floor, Sethana Building, 55, Maharshi Karve Road, Marine Lines, Mumbai - 400 002, Maharashtra, India

Date of Birth/Age :

12.07.1938

Qualification :

M.Com., LL.B., CAIIB

Date of Appointment :

11.09.2007

DIN No.:

00036455

 

KEY EXECUTIVES

 

Name :

Mr. Roopesh Kumar 

Designation :

Secretary

Address :

H. No.1791, Sector 13, Huda, Bhiwani – 127021, Haryana, India

Date of Birth/Age :

09.02.1976

Date of Appointment :

16.03.2010

PAN No.:

ALYPK0842M

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 22.07.2014

 

Names of Shareholders

 

No. of Shares

Grasim Industries Limited, India

 

20049400

Pavan Kumar Jain (Nominee of Grasim Industries Limited)

 

100

Sushil Agarwal (Nominee of Grasim Industries Limited)

 

100

Gopi Krishna Tulsian (Nominee of Grasim Industries Limited)

 

100

Ashok Malu (Nominee of Grasim Industries Limited) and Grasim Industries Limited

 

100

Adesh Kumar Gupta (Nominee of Grasim Industries Limited) and Grasim Industries Limited

 

100

Hemant Kadel (Nominee of Grasim Industries Limited) and Grasim Industries Limited

 

100

 

 

 

 

Total

 

20050000

 

Equity Share Break up (Percentage of Total Equity)

 

As on 22.07.2014

 

Category

Percentage

Bodies corporate

100.00

 

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in manufacturing polyester viscose fabric

 

 

Products :

Item Code No.

Product Description

55095100

Man-Made Fibre Yarn

55151130

Man-Made Fibre Fabrics

 

 

Brand Names :

Grasim and Graviera 

 

 

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 :

Bank Name

HDFC Bank Limited

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

 

 

Facilities :

(Rs. In Million)

SECURED LOAN

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWING

 

 

Rupee term loans from bank

(Secured by by first charge on movable and immovable fixed assets both present and future at Bhiwani.)

317.993

380.040

 

 

 

SHORT TERM BORROWING

 

 

Working capital loans from bank

(Working capital borrowing are Secured by hypothecation of stocks and book debts of the company.)

2.645

55.147

Total

320.638

435.187

 

 

 

Auditors :

 

Name :

G.P. Kapadia and Company

Chartered Accountants

Address :

4th floor, Hamam House , Ambalal Doshi Marg, (Hamam Street), Fort, Mumbai  - 400001, Maharashtra, India 

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

AAAFK1144P

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Fellow Subsidiary companies:
  • Al Nakhla Crusher LLC, United Arab Emirates
    Arabian Cement Industry LLC, United Arab Emirates
  • Arabian Gulf Cement Company WLL, Bahrain
  • Dakshin Cements Limited, India

CIN No.:U26940TG1993PLC016002

  • Emirates Cement Bangladesh Limited, Bangladesh
  • Emirates Power Company Limited, Bangladesh
  • Harish Cement Limited, India

CIN No.:U26941HP1996PLC019173

  • PT UltraTech Investments, Indonesia
  • Samruddhi Swastik Trading And Investments Limited, India

CIN No.:U67120MP1994PLC008447

  • Star Cement Company LLC RAK, United Arab Emirates
  • Star Cement Company LLC, Dubai, United Arab Emirates
  • Sun God Trading And Investment Limited, India

CIN No.:U67120MP1994PLC008446

  • UltraTech Cement Lanka Private Limited, Sri Lanka
  • UltraTech Cement Limited, India
  • L26940MH2000PLC128420
  • UltraTech Cement Middle East Investment Limited, United Ara Emirates
  • UltraTech Cement Mozambique Limitada, Mozambique
  • Samruddhi Cement Limited
  • CIN No.:L26959GJ2009PLC058011

 

 

Holding Company:
  • Grasim Industries Limited, India

CIN No.:L17124MP1947PLC000410

 

 

CAPITAL STRUCTURE

 

As on 22.07.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25000000

Equity Shares

Rs.10/- each

Rs. 250.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

20050000

Equity Shares

Rs.10/- each

Rs. 200.500 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

200.500

200.500

200.500

(b) Reserves & Surplus

779.036

597.619

506.528

(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)

979.536

798.119

707.028

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

437.795

575.214

702.223

(b) Deferred tax liabilities (Net)

104.938

103.983

59.686

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

35.087

34.855

25.477

Total Non-current Liabilities (3)

577.820

714.052

787.386

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2.645

109.437

31.605

(b) Trade payables

838.869

745.681

736.798

(c) Other current liabilities

256.001

207.881

177.375

(d) Short-term provisions

14.232

7.457

6.647

Total Current Liabilities (4)

1111.747

1070.456

952.425

 

 

 

 

TOTAL

2669.103

2582.627

2446.839

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

808.774

830.373

833.154

(ii) Intangible Assets

0.219

0.744

1.541

(iii) Capital work-in-progress

53.023

28.701

33.378

(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

0.000

0.000

(d)  Long-term Loan and Advances

41.164

22.370

15.702

(e) Other Non-current assets

 

 

 

Total Non-Current Assets

903.180

882.188

883.775

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

711.065

746.097

586.245

(c) Trade receivables

871.563

758.317

694.657

(d) Cash and cash equivalents

0.825

0.935

0.931

(e) Short-term loans and advances

165.735

183.959

271.473

(f) Other current assets

16.735

11.131

9.758

Total Current Assets

1765.923

1700.439

1563.064

 

 

 

 

TOTAL

2669.103

2582.627

2446.839

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

4503.961

4087.806

3714.604

 

Other Income

19.060

14.531

16.801

 

TOTAL

4523.021

4102.337

3731.405

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

1283.827

1317.398

1038.465

 

Purchases of Stock-in-Trade

897.393

757.601

683.852

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

76.401

(138.998)

58.079

 

Employees benefits expense

497.585

460.093

431.100

 

Other expenses

1401.165

1393.591

1257.291

 

TOTAL

4156.371

3789.685

3468.787

 

 

 

 

 

Less

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

366.650

312.652

262.618

 

 

 

 

 

Less

FINANCIAL EXPENSES

38.583

53.317

47.818

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

328.067

259.335

214.800

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

97.357

89.979

84.286

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

230.710

169.356

130.514

 

 

 

 

 

Less

TAX

49.292

78.264

68.504

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

181.418

91.092

62.010

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

1229.900

1101.100

814.500

 

TOTAL EARNINGS

1229.900

1101.100

814.500

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

9.05

4.54

3.09

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

133.979

120.327

107.173

Cash generated from operations

N.A

N.A

N.A

Net cash flows from (used in) operations

446.221

206.898

276.458

Net cash flows from (used in) operating activities

397.842

172.931

250.178

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

4.03

2.23

1.67

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

8.14

7.65

7.07

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

8.82

6.63

5.41

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.24

0.21

0.18

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.59

1.01

1.19

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.59

1.59

1.64

 

 

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

200.500

200.500

200.500

Reserves & Surplus

506.528

597.619

779.036

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

707.028

798.119

979.536

 

 

 

 

long-term borrowings

702.223

575.214

437.795

Short term borrowings

31.605

109.437

2.645

Current maturities of long-term debts

107.173

120.327

133.979

Total borrowings

841.001

804.978

574.419

Debt/Equity ratio

1.189

1.009

0.586

 

 

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

3714.604

4087.806

4503.961

 

 

10.047

10.180

 

 

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

3714.604

4087.806

4503.961

Profit

62.010

91.092

181.418

 

1.67%

2.23%

4.03%

 

 

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

 

OPERATIONS

 

During the year, the company has achieved a turnover of Rs. 4398.500 Million as against Rs. 4009.100 Million for the previous year. The PBDIT was Rs.366.600 Million as against Rs. 312.700 Million of the previous year. After providing for current and deferred tax of Rs. 49.300 Million, the company has achieved net profit of Rs. 181.400 Million as against Rs. 91.100 Million for the previous year.

 

The year witnessed weak retail off take in domestic market due to prolonged de-growth in retail leading to stock buildups, poor consumer footfalls and weak response to key festival related sales.

 

However, export market showed strong growth backed by currency and firm orders from retail businesses across US and Europe. This growth is tapering and is expected to remain moderate in coming year. However, your company is optimistic for the coming year with moderate growth level.

 

However, in spite of the above trends, your company has been able to show significant increase in profitability for the year ended 31st March, 2014.

 

SA 8000 and OHSAS 18001 certification have been renewed by the certification authorities with no major non compliances.

 

 

BUSINESS OUTLOOK

 

In domestic market, new design and development will be the key differentiator for growth. Products with high quality, design and finish have done well and your company brands are focusing on driving growth mainly through innovation and new designs. Further, geographical expansion for both brands (Grasim and Graviera) will lead to increased distribution network. In order to counter increasing cost of imported Terene Rayon (TR), your company is in process of developing in-house T/R in quick time. The company is also trying balancing both in-house production mainly for Brands and Retailers and outsourcing for domestic brands and also strengthening supply chain from forecast to final delivery to customers so as to reduce the lead time while developing quality vendors for outsourcing. In the export market, growth is planned from stretch fabric sales both for Mens and Womens wear with increase in market penetration and focus on design and development. The company is continuously investing in stretch capacity and capability for womens wear.

 

UNSECURED LOAN

(Rs. In Million)

Particulars

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWING

 

 

Loans and Advance from related parties

119.802

195.174

 

 

 

SHORT TERM BORROWING

 

 

Loan and Advance from Others

0.000

54.290

Total

119.802

249.464

 

 

FIXED ASSETS

Tangible Assets

·         Freehold Land

·         Buildings

·         Plant and Machinery

·         Furniture and Fitting and Office Equipments

·         Vehicles

Intangible Assets

Software/ License

 

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.64.96

UK Pound

1

Rs.100.55

Euro

1

Rs.73.99

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

RKI

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILITY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

 

72

 

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.