MIRA INFORM REPORT

 

 

Report Date :

10th June, 2006.

 

IDENTIFICATION DETAILS

 

Name :

M J BIOPHARM PRIVATE LIMITED

 

 

Registered Office :

113, Jolly Maker Chambers No. 2, Nariman Point, Mumbai, Maharashtra, India

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

24.08.1987

 

 

Com. Reg. No.:

11-44458

 

 

CIN No.:

[Company Identification No.]

U29249MH1987PTC044458

 

 

TAN No.:

(Tax Deduction & Collection Account No.)

MUMM12182C

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

The company is engaged in trading Liquid Injections (Ampoules), Liquid Injections (Vials) and Tablets

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

 

Maximum Credit Limit :

 

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Financial position of the company is moderate having substantial accumulated losses. Payments are slow but correct.

 

The company can be considered for moderate business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office/ Head Office :

113, Jolly Maker Chambers No. 2, Nariman Point, Mumbai, Maharashtra, India

Tel. No.:

91-22-22020644 (8 Lines)

Fax No.:

91-22-22048030/31

E-Mail :

sipltd@vsnl.com

miexpore@vsnl.com

mjgroup@mj.India.com

 

 

Factory 1 :

L-7, MIDC Industrial Area, Taloja –410208, Raigad, Maharashtra, India

Tel. No.:

91-22-27402331

Fax No.:

91-22-27402311

E-Mail :

mjbiopharm@mj-India.com

Website :

http://www.mj-India.com

www.mjbiopharm.com

 

DIRECTORS

 

Name :

Mr. Jaslvant M. Shah  (NRI)

Designation :

Chairman Emirates

Address :

Ground Floor, North Raebarn House, 100 Northolt Road, South Harrow, Middex Hazodym, U. K.

Date of Birth/Age :

19.11.1936

Date of Appointment :

19.10.1999

 

 

Name :

Mr. Sharad Champaklal Jariwala

Designation :

Whole time Director 

Address :

251, Enterprises Apartment, Fojett Hill Road, Tardeo, Mumbai-400 036

Date of Birth/Age :

13. 12.1942

Date of Appointment :

03.12.1997

 

 

Name :

Mr. Amol Jashvant Shah

Designation :

Managing Director

Address :

11/ A, Aashina, 5 Altamount Road, Mumbai - 400026

Date of Birth/Age :

10.11.1965

Date of Appointment :

03.12.1997

 

 

Name :

Mr. Dr. Shrotriya  Pradyumn Gaurishanker

Designation :

Whole time Director

Address :

Building No. 11, Flat No 302, Sea weeds, Estate Limited, sector 54/56/58, NRI Complex, Nerul, Navi Mumabi-400706

Date of Birth/Age :

01.02.1945

Date of Appointment :

30.11.2002

 

 

Name :

Mr. Achal Ghai

Designation :

Director

Address :

Suite 410, L.O.B. 15, P O Box 18264, Jebel Ali Free Zone, Dubai, United Arab Emirates

Date of Birth/Age :

30.08.1963

Date of Appointment :

07.06.2005

 

 

Name :

Mr. S C Jariwala

Designation :

Director Finance

 

 

Name :

Mr. Dr. P G Shrotriya

Designation :

Director – Technical

 

 

Name :

Mr. S Kapoor

Designation :

General Manager Works

 

 

Name :

Mr. H H pandit

Designation :

General Manager Tech Services

 

 

Name :

Mr. R Lochan

Designation :

General Manager Form and Development

 

 

Name :

Mr. Girish Mehta

Designation :

General Manager Purchase

 

 

Name :

Mr. Arivind Yadav

Designation :

General Manager-Engineering

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

M J Exports Private Limited

1218000

Amol J Shah

6557000

Mrs. Kajal A Shah

250000

Amol, J Shah

Partner M J International

475000

Amol J Shah

Korta of Amol J Shah (HUF)

3750000

M J Holding and Leasing Limited

100000

Mr. J M Shah

Karta of J M Shah (HUF)

200000

Mrs. Amrapuri S. Mehta

50000

Jashrant M. Shah

400000

Avigo Venture Investments Limited

10000

Avigo Venture Investments Limited

4300000

TOTAL:

17310000

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in trading Liquid Injections (Ampoules), Liquid Injections (Vials) and Tablets

 

 

Products :

 

ITC Code No.

Insulin Injections

30043101

Predmsolone Sodium

30043902

Diclifrnac Sodium

30049011

 

 

 

Export to :

China, Hongkong, Thailand, Singapore, Malaysia, Brazil

 

 

 

PRODUCTION STATUS

 

Particulars

 

Unit

Installed Capacity

Actual Production

Dry Powder

 

Vials

14040000

947596

Liquid Injections

 

Ampoules

36363000

8404057

Liquid Injections

 

Vials

9360000

2208530

Tablets

 

Vials

176904000

23164880

Sachets

 

Nos.

--

--

Liquid Corals

 

Battles

--

--

Capsules

 

Nos.

--

168000

 

GENERAL INFORMATION

 

No. of Employees :

180

 

 

Bankers :

Canara Bank

 

 

Facilities :

Secured Loan

Amount (in Millions)

From Banks/ Financial Institutions

 

Term Loan from Canara Bank

(Secured against mortgage of Land & Building, hypothecation of Plant & Machinery and other fixed assets at Taloja and corporate Guarantee of M.J. Exports Limited and Personal guarantee of a Director of the company)

64.596

Under Vehicle Finance Scheme

(Above Loans from Citi Corporation Maryti Finance Limited, HDFC Bank, Kotak Mahendra Primus Limited and ICICI Bank amounting to Rs. 0.028, Rs. 0.232, Rs. 1.072 and Rs. 0.525 millions respectively are secured against hypothecation of the vehicle purchased as per the scheme.)

1.858

Cash Credit / Packing Credit from Canara Bank

(Above loans are secured against all current assets viz. stocks, book debts, and other movables assets of the company, corporate guarantee of M.J. Exports Limited and Personal guarantee of a Director of the company)

15.390

 

 

Unsecured Loan

 

From Director

1.560

From Shareholders

0.000

From Companies

8.258

Total:

91.662

 

 

 

 

Banking Relations :

Unknown

 

 

Auditors :

H N Motinalla and Company

Chartered Accountants

308, Sharda Chambers, 15 A New Marine Lines, Mumbai-400020

Tel. No.:

91-22-22005431

 

 

Associates/Subsidiaries :

Stomeneed Cem-feb India Private Limited

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

15000000

Equity Share

Rs. 10/- each

Rs. 150.000 millions

 

 

 

 

5000000

12 % Non-cumulative Redeemable Preference Shares 

Rs. 10/- each

Rs. 50.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

13010000

Equity Share

Rs. 10/- each

Rs. 130.100 millions

 

 

 

 

4300000

12 % Non-cumulative Redeemable Preference Shares

Rs. 10/- each

Rs. 43.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2005

31.03.2004

31.03.2003

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

130.000

160.000

160.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

70.000

0.000

0.000

4] (Accumulated Losses)

(36.352)

(73.779)

(56.578)
NETWORTH

163.648

86.221

103.422

LOAN FUNDS

 

 

 

1] Secured Loans

81.846

96.137

118.241

2] Unsecured Loans

9.818

51.315

46.763
TOTAL BORROWING

91.664

147.452

165.004

DEFERRED TAX LIABILITIES

35.159

37.211

0.000
 

 

 

 
TOTAL

290.471

270.884

268.426
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

219.717

227.546

236.738
Capital work-in-progress

0.055

0.000

0.000
 

 

 

 
INVESTMENT

6.107

6.107

6.106
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
56.557

57.336

60.210
 
Sundry Debtors
110.585

32.802

16.140
 
Cash & Bank Balances
4.994

4.118

3.922
 
Other Current Assets
0.000

0.000

0.000
 
Loans & Advances
25.104

16.960

15.436
Total Current Assets
197.240

111.216

95.708
Less : CURRENT LIABILITIES & PROVISIONS
 

 

 
 
Current Liabilities
136.633

78.675

75.751
 
Provisions
0.000

0.000

0.000
Total Current Liabilities
136.633

78.675

75.751
Net Current Assets
60.607

32.541

19.957
 

 

 

 
MISCELLANEOUS EXPENSES

3.985

4.690

5.625
 

 

 

 
TOTAL

290.471

270.884

268.426

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2005

31.03.2004

31.03.2003
Sales Turnover [including other income]

463.944

401.422

234.510
 

 

 

 
Profit/(Loss) Before Tax

35.447

20.071

(55.545)
Provision for Taxation

0.000

0.000

(0.338)
Deferred Tax

2.051

(0.055)

 
Wealth Tax

(0.018)

(0.014)

 
Profit/(Loss) After Tax

37.481

20.001

(55.883)
 

 

 

 
Export Value

NA

NA

52.989
 

 

 

 
Import Value

NA

NA

108.363
 

 

 

 
Total Expenditure

461.690

434.354

319.443

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2005

31.03.2004

31.03.2003
PAT / Total Income
(%)
8.08

4.98

23.83
 
 
 

 

 
Net Profit Margin

(PBT/Sales)

(%)
7.64

5.00

25.69
 

 
 

 

 
Return on Total Assets

(PBT/Total Assets}

(%)
8.38

5.82

16.68
 

 
 

 

 
Return on Investment (ROI)

(PBT/Networth)

 
0.22

0.23

0.53
 

 
 

 

 
Debt Equity Ratio

(Total Liability/Networth)

 
1.40

2.62

2.32
 

 
 

 

 
Current Ratio

(Current Asset/Current Liability)

 
1.44

1.41

1.26

 

 

LOCAL AGENCY FURTHER INFORMATION

 

BUSINESS PROSPECTS:

 

Directors are pleased to inform that during the year the company could achieve the expected export business. In the mean time company is continuing its effort to enhance export of its products to U.K., Russia and other CIS Countries. Company is also planning export of its products to Srilanka, Vietnam, Niegeria, Kosovo, Guyana, Nepal, and Kenya etc. Apart from this company plans to expand its export business to various other countries of Asia, Africa, Latin American and Far East inclusive of South Africa, Brazil and Mexico. In the domesticfront, the company is continuing its arrangements with multinationals and large public limited companies for contract formulation and is getting orders for contract formulation on regular basis. During the current financial year company’s performance was fairly good till the torrential monsoon in July- end severely affected the company,s manufacturing operations together with delayed supplies of raw and packing material. Inspite of this temporary set back company is hopeful of gtting more orders in the remaining part of the current financial year The director belive that the company has taken all the necessary steps to have a fair share in the export market and are confident of achieving better results in the current financial year.

INVESTMENT BY VENTURE CAPITAL COMPANY:

 

Avigo Venture Investments Company Limited, a venture capital company based in Mauritius has shown interest to investment in their company and entered in to shareholders Agreement and Share Subscription Agreement on 28.04.2005.As per the terms of the agreement Avigo Venture Investments co Limited has invested Rs. 0.100 Millions in equity shares and Rs. 43.000 Millions in convertiable Preference shares.  The venture capital company has nominated Mr. Achal Ghai as a director on the board. Members approval is sought to issue 340000 equity shares to Mr. Achal Ghai at the rate of Rs. 0.10 per share.

 

FIXED ASSETS

 

Leasehold Land, Furniture and Fixtures, Factory Equipment, Plant and Machinery, Buildings, Vehicles and Computers

 

MANUFACTURING PLANT

 

Mj Biopharma plant is built on a 7 acre plot of land along with a belt area about 65 kms from Mumbai. It is well by road and railway is close to the modern container cargo sheva as well as the domestic and international airport of Mumbai facilities cover an area of 75000 sq. ft. plan and process outlay designed with the help of international consultants experience GMP standards. The plant manufactures cephalosporin dry inject ales and other injectables capsules regulatory agencies including US FDA and UK MCA the plant scrupulsly follows environment and safety standatds as the regulatory as well as socials and welfare agencies

 

 

 

Norman Vincent Peale says,

" The deeply held mental image tends to realize itself in fact. "

  We, in MJ Biopharm have envisioned a goal & our sights are continuously and firmly focused on realizing our targeted objective.

   In a short span of a year MJ Biopharm has created markets for its products at home and abroad   and has drawn up realistic projections for the coming times.

   MJ’s present and target markets include:

Name of the company

M J BIOPHARM PRIVATE LIMITED

Presented By

Canara Bank, Overseas Branch, Nariman Point, Mumbai – 400 021.

1) Date and description of instrument creating the change

Hypothecation of  Agreement  for Packing Credit Advances dated 28/05/2003.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 3.500 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of all the goods and commodities viz. Insulin Vials lying. Stored at godowns. Yards and premises of the company at L-7, MIDC Industrial Area. Taloja 410 208.S Dist. Raigad or elsewere or in respect of which the company can make any deposit. Hypothecation or charge whether the goods are in transit and whether the goods are in course of transit and whether in the possession control or power of the company or of the bank.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest on Packing Credit advances at such rates and in such manner including compounding as may be prescribed by RBI from time to time.

 

If the goods are not at all shipped or if the goods are shipped but not reimported in to India interest @16.75% inclusive of penal interest for entire period of advance

5) Name and Address and description of the person entitled to the charge.

Canara Bank, Overseas Branch, Nariman Point, Dalamal Tower,  Mumbai – 400 021.

6) Date and brief description of instrument modifying the charge

Not Applicable

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

 

 

Name of the company

Shreya Healthcare Private Limited

Presented By

Canara Bank, Overseas Branch, Nariman Point, Mumbai – 400 021.

1) Date and description of instrument creating the change

11/01/1999 – Common Hypothecation Agreement 

(A certified true copy is enclosed.)

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 99.500 Millions in respect of the following facilities:

 

Facility

Rupees (in Millions)

Letter of Credit FLC (DA/DP)

20.000

Packing Credit

3.000

FDB

1.500

Term Loan (S. T.)

75.000

 

 

TOTAL:

99.500

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Stock of goods such as raw materials, Finished goods and manufacturing goods and other items stock in trade and stores, spares, components, machinery, vehicle, furniture & Fixture and all other movable goods and properties of every description of the power wherever situated

 

All the Borrower’s present and future book debts, outstanding money, bills receivable, claims, bills contracts, securities, investments, cash, gold, silver, jewellery, rights and assets and rights relating to or in movable properties of whatever nature to which the Borrower is entitled to during the continuance of the agreement.

 

Plant and machinery and other assets acquired to be acquired in future.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest payable will be calculated based on the debit balance of the account at the rate of 4.34% p.a., above the ongoing PLR with a minimum of 17.34% p.a., compounded quarterly rests or such other rates as the bank may specify from time to time & over due interest @ 2.04% over and above the normal rate of interest.

 

The borrower shall maintain such margin of security as stipulated by the bank from time to time. The borrower shall not at any time operate or draw against the said account exceeding 10% on packing credit, 50% on Land& Building of term loan, 25% on Plant & machinery of term loan and 25% on FLC of the cost or market value of the said hypothecated articles, whichever is lower.

 

Operation of the charge:

 

The bank shall have First charge for due repayment of all the sums borrowed by the borrower.

5) Name and Address and description of the person entitled to the charge.

Canara Bank, Overseas Branch, Nariman Point, Dalamal Tower,  Mumbai – 400 021.

6) Date and brief description of instrument modifying the charge

Supplemental Common Hypothecation Agreement

 

Term Loan Agreement, both dated 23.09.2000 modifying a single charge.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

11.01.1999 – Original Charge for Rs. 99.500 Millions

 

18.07.2000 – Limit Increased from Rs. 99.500 Millions ton Rs. 145.000 Millions

 

Now vide the aforesaid Agreement dated 23.09.2000, the various limits granted by the bank enhanced from Rs. 145.000 Millions to RS. 258.500 Millions, as under

 

Nature of Facility

Existing Limit (Rs. In Millions)

Total Enhanced Limit (Rs. In Millions.)

Packing Credit

30.000

50.000

Foreign Demand Bills/ Bills of Exchange

10.000

10.000

FLC/ TLC

20.000

30.000

Term Loan (ST) (I)

75.000

75.000

Open Cash Credit

10.000

10.000

Term Loan (ST) (II)

--

83.500

TOTAL:

145.000

258.500

 

The securities by way of present and future current assets, viz. stocks, book debts and other movable assets and Plant & Machinery, tools lying at Plot No. L – 7, MIDC Industrial Area, Dist. Raigad, Navi Mumbai – 410 208. have also been extended to secure the enhanced limits.

 

Interest on the term loan ST (II) @15.25% p.a. at quarterly rests.

 

The term loan ST (II) shall be repayable in 24 quarterly installments commencing from September 2001, & ending on June 2007. The first 23 Installments shall be of Rs. 3.500 Millions each & the lost installment shall be of RS. 3.000 Millions.

 

All other terms and conditions remain the same.

 

Name of the company

Shreya Healthcare Private Limited

Presented By

Canara Bank, Overseas Branch, Nariman Point, Mumbai – 400 021.

1) Date and description of instrument creating the change

Deed of Hypothecation re: Vehicle dated 08.05.2000

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 0.211 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of Motor Vehicles viz. 1. Maruti 800 – ACTG – II (MET), Car to be purchased at Rs. 0.330 Millions (more to be described in Scheduled A to the agreement) and accessories.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest rate 15.81% p.a. with quarterly rests.

 

And default over due interest @ 2% p.a.

 

Loan to be repaid in 36 monthly installments of Rs. 0.007 Millions each, commencing from 08.06.2000 and ending on 08.04.2003.

5) Name and Address and description of the person entitled to the charge.

Canara Bank, Overseas Branch, Nariman Point, Dalamal Tower,  Mumbai – 400 021.

6) Date and brief description of instrument modifying the charge

Not Applicable

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

 

 

Name of the company

Shreya Healthcare Private Limited

Presented By

Canara Bank, Overseas Branch, Nariman Point, Mumbai – 400 021.

1) Date and description of instrument creating the change

Deed of Hypothecation re: Vehicle dated 12.03.2001

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 0.289 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of Motor Vehicles viz. 1. Indica – DLS M FURO II, to be purchased at Rs. 0.421 Millions (more to be described in Scheduled A to the agreement) together with tools and accessories.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest rate 15.81% p.a. with quarterly rests.

 

Incase of default over due interest @ 2% p.a.

 

Loan repayable in 36 monthly installments.

5) Name and Address and description of the person entitled to the charge.

Canara Bank, Overseas Branch, Nariman Point, Dalamal Tower,  Mumbai – 400 021.

6) Date and brief description of instrument modifying the charge

Not Applicable

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Applicable

 

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 records 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. 45.88

UK Pound

1

Rs. 84.61

Euro

1

Rs. 58.01

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

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

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

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

 

 

 

 

 

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