MIRA INFORM REPORT

 

 

Report Date :

17.05.2007

 

IDENTIFICATION DETAILS

 

Name :

EMERSON CLIMATE TECHNOLOGIES (INDIA ) LIMITED

 

 

Registered Office :

1202/1, Ghoel Road, Pune, ;411005, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

19.03.1993

 

 

Com. Reg. No.:

11-71223

 

 

CIN No.:

[Company Identification No.]

U29192PN1993PLC071223

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEK05318F

 

 

PAN No.:

[Permanent Account No.]

AAACK7291C

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Gas Compressors (Hermetically Sealed) Used in Air Conditioning and Refrigeration.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 6800000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company and a part of kirloskar Group. The company is progressing well. Director are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

Fundamentals are strong and healthy.

 

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

 

The company can be regarded as a promising business partner in a medium to long-run.

 

 

LOCATIONS

 

Registered Office :

1202/1, Ghoel Road, Pune, ;411005, Maharashtra, India

Tel. No.:

91-20-25534988/ 25534998/ 25536350

Fax No;

91-20-25534024

E-Mail :

ats@emersonclimate.com

Website :

www.emersonclimate.com

 

 

DIRECTORS

 

Name :

Mr. Sanjay C. Kirloskar

Designation :

Director

Address :

33, Suyojana Co-Op. Hsg. Society, Scheme-2, Koregaon Park, OPune;411001, Maharashtra

Date of Birth/Age :

22.03.1957

Date of Appointment :

01.07.1993

 

 

Name :

Mr. William T. Bosway

Designation :

Director

Address :

House 2, Helene court, 14, Shouson, Hill Road, HongKong

Date of Birth/Age :

09.04.1965

Date of Appointment :

01.10.2003

 

 

Name :

Mr. K. Taranath

Designation :

Managing Director

Address :

Flat No.402, Azalea Apt. Near Telephon Exchang Baner Pune, Maharashtra

Date of Birth/Age :

14.03.1944

Date of Appointment :

15.11.2005

 

 

Name :

Mr. Anant Ramkrishna Sathe

Designation :

Director

Address :

4, vinayak Apartment Sahakar nagar, Pune;411009, Maharashtra

Date of Birth/Age :

22.08.1952

Date of Appointment :

22.11.2005

 

 

Name :

Mr. Dara Phirozshaw Mehta

Designation :

Director

Address :

10, Southlands, 177, Colaba Road, Mumbai;40005, Maharashtra

Date of Birth/Age :

13.07.1933

Date of Appointment :

26.02.2002

 

 

Name :

Mr. Stephen Stewart

Designation :

Director

Address :

2A, Borrett Mansions, 9, Bowen Road, Honkong

Date of Birth/Age :

13.11.1950

Date of Appointment :

09.12.1997

 

 

Name :

Mr. Anil Naryan Alawani

Designation :

Director

Address :

Flat No.5, Yshodeep-C, Rambag Colony, Navi Peth, Pune;411030, Maharahdtra

Date of Birth/Age :

24.08.1945

Date of Appointment :

31.10.2002

 

 

Name :

Mr. Pradipta P. Sen

Designation :

Director

Address :

304/2, Palms, south City-1, Gurgaon;122001

Date of Birth/Age :

10.06.1952

Date of Appointment :

10.02.2004

 

 

Name :

Mr. Pratap P. Chavan

Designation :

Director

Address :

111, Shelford way, Dayton, Ohio;45429, USA

Date of Birth/Age :

10.06.1952

Date of Appointment :

10.02.2004

 

 

Name :

Mr. Padmakar S. Jawadekar

Designation :

Director

Address :

670, 5th Main road, 12th Cross Road, M.C. Layout, Vijaynagar, Bangalore;560040, Karnataka

Date of Birth/Age :

26.04.1941

Date of Appointment :

19.02.2005

 

 

Name :

Mr. Vineet B. Duggal

Designation :

Director

Address :

1224, Clover, Highlands, Off Nibm road, Kondhwa, Pune;411048, Maharashtra

Date of Birth/Age :

13.08.1967

Date of Appointment :

27.10.1995

 

 

MAJOR SHAREHOLDERS /

 

Names of Shareholders

 

No. of Shares

Kirloskar Bros. Limited

 

459000

Copeland Corporatin

 

441000

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Gas Compressors (Hermetically Sealed) Used in Air Conditioning and Refrigeration.

 

 

Products :

Product Description

Item Code No:

Gas Compressors

84148001

 

 

Exports :

 

Countries :

Asia, Africa, Middle East, Australia, Saudi Arabia, Oman, Kuwait, China, Taiwan, Egypt

 

 

Imports :

 

Countries :

United Staes, Germany, Thailand, Singapore

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Gas Compressors

 

1300000

1144020

580258

Condensing Units

 

25000

18600

4856

Manufactured components

 

 

 

76728

 

 

GENERAL INFORMATION

 

Bankers :

ICICI Bank

Bank of India

Canara Bank

The United Western Bank Limited

 

 

Facilities :

Secured Loan

As at 31.03.2006 Rs in Million

From Bank :

 

Working Capital facilities

 

Secured by hypothecation of inventories and book debts

67.110

Term Loan

 

Loan secured by hypothecation of Vehicles Purchased out of the said loan 

1.476

From Other

 

Loan secured by hypothecation of vehicles purchased out of the said loan

0.820

Unsecured Loan:

 

Other than from banks:

 

Sales tax deferral (other short term) (Prepaid during the year)

0.000

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

A F Ferguson and Company

Chartered Accountant

Address :

A F Ferguson and Company Bombay Samachar AMrg, Fort, Mumbai;400001, Maharashtra, India

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1000000

Equity Shares

Rs.100/- each

Rs.100.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

900000

Equity Shares

Rs.100/- each

Rs.90.000 Millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

90.000

90.000

90.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1622.205

1385.523

1200.600

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1712.205

1475.523

1290.600

LOAN FUNDS

 

 

 

1] Secured Loans

69.407

211.031

123.500

2] Unsecured Loans

116.808

134.220

124.400

TOTAL BORROWING

186.215

345.251

247.900

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1898.420

1820.774

1538.500

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

687.035

752.039

679.300

Capital work-in-progress

90.197

12.365

15.600

 

 

 

 

INVESTMENT

155.132

0.513

167.500

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

539.293

751.902

496.600

 

Sundry Debtors

660.103

560.051

400.00

 

Cash & Bank Balances

68.768

72.523

71.000

 

Other Current Assets

0.008

0.007

0.000

 

Loans & Advances

227.191

248.213

302.400

Total Current Assets

1495.363

1632.696

1270.000

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Current Liabilities

438.572

507.836

498.300

 

Provisions

90.735

69.003

95.600

Total Current Liabilities

529.307

576.839

593.900

Net Current Assets

966.056

1055.857

676.100

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1898.420

1820.774

1538.500

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

3341.425

3296.916

3134.500

Other Income

91.084

36.744

85.000

Stock Adjustment

0.000

0.000

(161.300)

Total Income

3432.509

3333.660

3058.200

 

 

 

 

Profit/(Loss) Before Tax

396.267

314.188

367.600

Provision for Taxation

141.629

103.852

119.900

Profit/(Loss) After Tax

254.638

210.336

247.700

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

1.071

0.367

0.000

 

Commission Earnings

5.896

3.377

0.000

 

Other Earnings

1.818

3.3383

0.000

Total Earnings

8.785

7.0823

0.000

 

 

 

 

Imports :

 

 

 

 

Raw Materials

169.050

207.694

0.000

 

Stores & Spares

2.881

5.433

0.000

 

Capital Goods

325.794

270.287

0.000

 

Others

45.753

47.353

0.000

Total Imports

543.478

530.767

0.000

 

 

 

 

Expenditures :

 

 

 

 

Raw Materials

0.000

0.000

1495.200

 

Excise Duty

0.000

0.000

256.600

 

Power & Fuel Cost

0.000

0.000

43.200

 

Other Manufacturing Expenses

0.000

0.000

426.600

 

Employee Cost

0.000

0.000

171.300

 

Selling and Administration Expenses

0.000

0.000

134.800

 

Miscellaneous Expenses

0.000

0.000

108.500

 

Raw Material Consumed

1354.196

1715.450

0.000

 

Purchases made for re-sale

458.359

406.222

0.000

 

Salaries, Wages, Bonus, etc.

151.973

139.718

0.000

 

Managerial Remuneration

5.390

4.508

0.000

 

Payment to Auditors

1.465

1.558

0.000

 

Interest

5.448

6.046

0.000

 

Insurance Expenses

5.876

4.612

0.000

 

Power & Fuel

46.539

46.978

0.000

 

Other Expenditure

1006.992

694.376

0.000

Total Expenditure

3036.238

3019.468

2636.200

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Debt-Equity Ratio

0.21

0.26

0.31

Long Term Debt-Equity Ratio

0.10

0.11

0.12

Current Ratio

1.60

1.45

1.46

TURNOVER RATIOS

 

 

 

Fixed Assets

2.80

2.42

2.49

Inventory

5.37

4.85

4.56

Debtors

9.01

7.89

7.12

Interest Cover Ratio

66.64

36.62

21.69

Operating Profit Margin(%)

14.68

15.58

15.68

Profit Before Interest And Tax Margin(%)

11.91

12.71

12.95

Cash Profit Margin(%)

10.67

10.25

11.32

Adjusted Net Profit Margin(%)

7.90

7.38

8.59

Return On Capital Employed(%)

24.60

23.66

24.49

Return On Net Worth(%)

19.82

17.35

21.25

 

STOCK PRICES

 

Face Value

Rs.10.00

High

Rs.0.00

Low

Rs.0.00

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Name of the company

Kirloskar Copeland Limited

Presented By

Vineet Duggal

Company Secretary

1) Date and description of instrument creating the change

Laon Agreement dated 23rd june 204.

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

Rs. 0.485 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

Vehicle make Ford Ikon -1.3, bearing Registration no.MH 12 CD 6865

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

The amount of loan of Rs.0.485 Millions sanctioned to the borrower i.e, Kirloskar Copeland Limited is repayable in 35 equal monthly installments of Rs.0.015 Millions

 

Right of the Lenders to enter the premises where the vehicles has been kept and inspect the vehicles.

 

Power to take charge, possessions, seize sell or deal with vehicle to enforce Lender’s security and recover the borrower’s outstanding  dues of any breach of default by the company.

 

 

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

Ford Credit Kotak Mahindra Limited

36-38A, Nariman Bhavan, 277, Nariman Point, Mumbai:40021

6) Date  and brief description of instrument modifying the 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.

--

 

Corporate identity number of the company

U2919PN1993PLC071223

Name of the company

Kirloskar Copeland Limited

Address of the registered office or of the principal place of  business in India of the company

1202/1 Ghole Road, Pune;411005 Maharashtra, India

This form is for

Creation of Charge

Type of charge

Hypothecation

Particular of charge holder

ICICI Bank Limited 807/1, Suma House, Bhandarkar Road, Pune;411004, Maharashtra, India

 

Rajesh.ganu@icicibank.com

Nature of instrument creating charge

Deed of Hypothecation dated 15.04.2006

Date of instrument Creating the charge

15.04.2006

Amount secured by the charge

Rs.0.390 Millions

Brief of the principal terms an conditions and extent and operation of the charge

The Amount of Loan of Rs. 0.390 Millions sanctioned to the Borrower i.e; Kirloskar Copeland Limited is Repayable in 36 Equal Monthly installments of Rs. 0.012 Millions each starting from June 5, 2006

Description of the property charged indicating whether it is a charged on

Vehicles

Particulars of the property charged

Vehicle Make Hyundai- Getz, Bearing Registration No: MH 12 DE 2719

Charge identification number of the charge to be modified

--

 

 

Operation and dividend

tehFinancial Year ended March 31, 2006 was a very Cahllenging one from the Company’s business Standpoint. Challenges in the form fo reduction in import duties, reduction in export bebnefits and imposition of service tax on repair of compressors continued with the furthering of the Ecnomic Reforms.Transition of Room air-conditioning business from reciprocating to roraries continued with rotaries establishing a strong presence in Middle East markets. The market participation of the company in the Commercial refrigeration segment registered a strong growth with additional offerings by the company t its existing range of R404a compressors and HHP condensing units. The export business of hecomapny grew consistently with customers continuing to respose faith in our products by sourcing our compressors consistently for last many year, primarily due to our quality cost delivery performance and service.

 

The Sale and other income of the company for the year 2005-2006 were rs.3432.510 Mikllion as compared to Rs.333.720 Millions in 2004-2005. The Profit before tax was at Rs.396.27 Millions for the year 2005-2006 as compared to Rs.314.25 million for the year 2004-2005

 

Energy Conservtion Measure taken by the company

Some of the important areas in which the Company undertook energy conversation measure during the financial year are:

  • Solar water heating system for shell washing system and process water heating in places of Thermic fluid based water heating system.
  • Paint Baking through Furnace Oil based Thermic Fluid Heatig System.
  • There officer from the company are qualified as Energy Manager by Burea of Energy Efficient (Govt. of Indi) out of Which 1 officer is qualified as an Energy Auditor.
  • Energy Conservation Week” was observed to create awareness among the employeesn and society. A dedicated Exhibition of Energy Efficient Products was organized in Karad and Satara City for employees and society.
  • Use of energy saving devices like Static frequency Drives and Variables Frequency Drives. Air Efficient Blowing Guns introduced with Process Improvements with respect to improvement of utility efficiency.
  • Energy Conservation was one of the major criteria while implementing Layout changes. Process changes and TPS system at main Plant and Vendor locations including selections of machines/ Equipments.

 

 The efforts of the company on energy Conervation were recognized  through the various awards won by the Company

 

  • First prize at state Level Com[petition for “energy Conservation Awards- 2004- 2005 “ organized by  MEDA (Maharashtra Energy Development Agency)
  • Energy Efficient Unit award for Use and Management of Non-Conventioanl Energy 2004-2005” organized by MEDA (Mahaarashtra Enmergy Development Agency) for use of Solar System and wind Mill for Industrial Production.
  • The company was awarded the “certificate of Merit” in General and Engineering Category at the hands of the President of India in the Competition organized by Bureau of Energy Efficiency- Under Ministry of Power, government of India for National energy conversation Awards 2005.
  • In additional to the above the Atit and Karad Plants won First and Second Prize respectively in K- Group Energy Conversation competition within 16 Kirloskar Group Units.

 

Fixed Assets:

Land

Building

Plant Machinery and Equipments

Furniture and Fitting

Vehicles

 

Contingent liabilities not provided for in respect of :

Excise matter disputed by the Company

Claims against the Company not acknowledge as debts in respect of:

Sales tax matters

 

 

As Per Web Site:

The company is a business of Emerson, is the world's leading provider of heating, ventilation, air conditioning, and refrigeration solutions for residential, industrial and commercial applications.

We combine technically superior products from our industry-leading divisions and brands – such as Copeland® brand products, White-Rodgers, and Flow Controls – with our engineering, design, distribution, installation and monitoring capabilities, to create unquestionably reliable climate systems. These industry-defining, proprietary technologies provide our customers with a peerless competitive advantage.

EMERSON CLIMATE TECHNOLOGIES RETAIL SOLUTIONS TO PROVIDE BETTER INTEGRATION OF TECHNOLOGY, SINGLE FACE TO CUSTOMERS

Realignment of Emerson Retail Services and Computer Process Controls to further evolve the Intelligent Store™ architecture, improve value for customers

ST. LOUIS, March 16, 2007 – Emerson Climate Technologies, a business of Emerson (NYSE: EMR), today announced the strategic alignment of two of its solutions businesses which focus on delivering products and services to the retail, supermarket, convenience store, and restaurant industries. The alignment of Emerson’s Retail Services and Computer Process Controls divisions brings together engineering, field services and customer support capabilities, to help increase product development and ultimately bring more energy-efficient technologies to the market.

“Providing our customers with advanced technologies that work better together to greatly improve energy efficiency and reliability, while also bringing a single face to the customer, are some of the key initiatives driving Emerson Climate Technologies. This alignment is a natural extension of those initiatives,” said Bill Coulombe, the new president of Emerson Climate Technologies Retail Solutions. “By aligning our engineering capabilities, we will continue to develop innovative, integrated technologies, such as our Intelligent Store™ architecture, that require our engineers to incorporate products and expertise from across Emerson.” Introduced in 2005, Emerson’s Intelligent Store architecture is a group of innovative products and services that can work either independently or together to improve system efficiency, monitor system operations and help prevent system failures.

“One change that our customers will see as a result of this alignment is a greater synergy of our internal teams, allowing us to more effectively bring the unique benefits of the Intelligent Store architecture to their businesses,” said Matt Lauck, Retail Solutions marketing director. “Customers will continue to see the CPC® and ProAct® names for our products and services.”

Computer Process Controls is a longstanding provider of controls to the supermarket and convenience store industries. Retail Services has led the industry in the development of monitoring and energy services to those industries. With CPC’s 15,000+ installations, Retail Services’ 5,500+ monitored sites, and estimated annual energy savings of over 42 Million kWh, the alignment creates a proven and experienced solutions organization offering engineering excellence and customer support.

 

 

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.40.60

UK Pound

1

Rs.80.13

Euro

1

Rs.54.87

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

65

 

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

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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