MIRA INFORM REPORT

 

 

Report Date :

24.05.2007

 

IDENTIFICATION DETAILS

 

Name :

DEVASHISH POLYMERS PRIVATE LIMITED

 

 

Registered Office :

C/o. Eve Fabrics Private Limited, N. T.C. House, 1st Floor, N. M. Marg, Ballard Estate, Mumbai – 400038, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

08.04.1996

 

 

Com. Reg. No.:

11-98680

 

 

CIN No.:

[Company Identification No.]

U25209MH1996PTC098680

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMD05072E

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturers of Synthetic Rubber Compound and Dyes & Chemicals.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 69000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track.  Trade relations are fair. Business is active.  Payments are reported as usually correct and as per commitments.

 

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

 

 

LOCATIONS

 

Registered Office /

Corporate Office :

Eve Fabrics Private Limited, N. T.C. House, 1st Floor, N. M. Marg, Ballard Estate, Mumbai – 400038, Maharashtra, India

Tel. No.:

91 22 2261 3440 / 2261 7660 / 2261 4025

Fax No.:

91-22- 2261 7709 / 2648 4584

E-Mail :

devpolymers@vsnl.com

Website :

http://www.derashishpolymers.com

 

 

Factory 1 :

Survey No. 272/1/3, Dadra – Demini Road, Village Dadra, Silvassa – 396191, Union Territory

Tel. No.:

91-260-2648457 / 2648557 / 309 1393 / 309 1981

Fax No.:

91-260-2648457 / 2648557 / 266 8457

 

 

DIRECTORS

 

Name :

Mr. Chandrakant Kamlaprasad Mody

Designation :

Chairman cum Managing Director

Address :

202, Amrit Niwas, 2nd Floor, Sarojini Road, Santacruz [West], Mumbai – 400054, Maharashtra, India

Date of Birth/Age :

29.12.1952

Date of Appointment :

01.12.1997

 

 

Name :

Mr. Nikhil Chandrakant Mody

Designation :

Director

Address :

202, Amrit Niwas, 2nd Floor, Sarojini Road, Santacruz [West], Mumbai – 400054, Maharashtra, India

Date of Birth/Age :

26.03.1981

Date of Appointment :

01.04.2002

 

 

Name :

Mr. Arun Jagmohan Roongta

Designation :

Director

Address :

401, Samonder Mahal, 1st Floor, A. B. Patil Road, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

05.12.1954

Date of Appointment :

22.06.2000

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Mr. Aditya Mody

 

134000

Mr. Chandrakant Mody

 

415671

Ms. Sunita Mody

 

233486

Kaubi Tex Expo Private Limited

 

10000

Mr. Aditya Mody – Jointly with Mrs. Charulata Mody

 

160510

Ms. Sunita Mody – Jointly with Mr. Chandrakant Mody

 

126441

Mitsufuku Industry Company Limited

 

51782

Mr. Sharad Tibrewala

 

110

AKM Global Textiles Private Limited

 

108000

Mr. Nikhil Mody

 

10000

TOTAL

 

1250000

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Synthetic Rubber Compound and Dyes & Chemicals.

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Synthetic Rubber Compound

Kgs.

N.A.

120000

27440.15

 

 

GENERAL INFORMATION

 

Bankers :

Central Bank of India

Ballard Estate Branch, Marshall Building, Shoorji Vallabhdas Marg, Mumbai – 400038, Maharashtra, India

 

 

Facilities :

Secured Loans : Term Loan and Cash Credit

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

M. L. Sharma & Company

Chartered Accountants

Address :

107, Chartered House, 297 – 299, Dr. C. H. Street, Marine Lines, Mumbai – 400002, Maharashtra, India

Tel. No.:

91-22-22010808

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1250000

Equity Shares

Rs. 10/- each

Rs. 12.500 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1250000

Equity Shares

Rs. 10/- each

Rs. 12.500 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

12.500

12.500

12.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

4.960

4.827

3.556

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

17.460

17.327

16.056

LOAN FUNDS

 

 

 

1] Secured Loans

13.719

10.240

11.367

2] Unsecured Loans

6.370

0.901

0.828

TOTAL BORROWING

20.089

11.141

12.195

DEFERRED TAX LIABILITIES

0.000

0.000

1.427

 

 

 

 

TOTAL

37.549

28.468

29.678

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

15.362

16.380

17.125

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
28.261

9.035

10.712

 

Sundry Debtors
10.583

10.100

6.491

 

Cash & Bank Balances
0.454

1.010

0.664

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
1.868

1.001

0.613

Total Current Assets
41.166

21.146

18.480

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
18.938

9.679

7.078

 

Provisions
0.733

0.300

 

Total Current Liabilities
19.671

9.979

7.078

Net Current Assets
21.495

11.167

11.402

 

 

 

 

MISCELLANEOUS EXPENSES

0.692

0.921

1.151

 

 

 

 

TOTAL

37.549

28.468

29.678

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

50.409

47.741

32.880

Other Income

 

 

 

Total Income

50.409

47.741

32.880

 

 

 

 

Profit/(Loss) Before Tax

NA

NA

0.539

Provision for Taxation

NA

NA

0.396

Profit/(Loss) After Tax

0.373

1.593

0.143

 

 

 

 

Earnings in Foreign Currency :

 

 

 

Total Earnings

7.601

7.297

5.222

 

 

 

 

Imports :

 

 

 

Total Imports

NA

NA

14.942

 

 

 

 

Expenditures :

 

 

 

 

Interest

2.270

1.453

0.000

 

Other Expenditure

50.036

46.148

32.341

Total Expenditure

52.306

47.601

32.341

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
0.74

0.74
0.43

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
NA

NA
1.63

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
NA

NA
1.51

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
NA

NA
0.03

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
2.28

1.22
1.20

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
2.09

21.60
2.61

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

The current year the company is concentrating a lot on the International market.  The automobile requirements are now increasing with an accepted fact of making India a ‘Hub’ [Main Centre point] for the manufacturing of automobiles, which provides the company with an opportunity to get excellent orders during the forthcoming year.  There are a various corporate customers that the company has targeted and developments for the same are in progress.

 

Generic Names of Principal Products / Services

 

Ř       Synthetic Rubber Compound

Ř       Dyes & Chemicals

 

Fixed Assets

 

Land, Factory Building, Vehicles, Office Equipments, Furniture & Fixtures, Computers and Plant and Machinery.

 

Name of the company

DEVASHISH POLYMERS PRIVATE LIMITED

Presented By

Shri. Chandrakant Mody [Director]

[Name and Designation of the Official of the company]

1) Date and description of instrument creating the change

Memorandum of Entry dated 01.02.2003

Letter of Hypothecation dated : 01.02.2003

Agreement for Bill Discounting dated 01.02.2003, agreement of hypothecation to secure demand cash credit against goods dt. : 01.02.2003, letter of hypothecation dt. 01.02.2003, articles of agree. Dt. 01.02.2003 and agreement of hypothecation of goods to secure L/C [DA basis] dated 1st February, 2003. [All the above agreements constitute Single Charge created on 01.02.2003]

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

Rs. 9.700 millions

 

Nature of Facility

Rs. in Millions

Cash Credit

5.500

Bill Discount /

Accepted Challans

1.500

Term Loans

0.700

Letter of Credit [Import / Inland] DA/DP up to 90 days

2.000

Total

9.700

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

All the movable, immovable properties comprising inter alia machinery equipments, plants and spare parts which now or hereafter from time to time during these security shall belong to the borrowers whether the same may be in transit or which now or hereafter from time to time during the continuance of the security hereby created shall be brought in or stored or be in or about the premises, warehouses or godowns, of the borrowers at Survey No. 272/1/3, Dadra Demini Road, Village Dadra, Silvassa – 396191 or anywhere else including in transit or delivery or in or at any other premises in the occupation of the borrowers.

 

All tangible movable property such as products stock-in-trade and goods, whether finished or raw or in process or manufacture and all articles manufactured therefrom belonging to the borrowers which now or hereafter from time to time during the security shall brought in, stored or be in or about the premises warehouses or anywhere else or godowns of the borrowers situated at Survey No. 272/1/3, Dadra Demini Road, Village Dadra, Silvassa – 396191 inclusive of the Two Air-conditioner and partitions, and hypothecation of goods under import / inland letter of credit, as security for the above financial facilities.

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

To secure due repayment & discharge loan given to the company the rate of interest are as follows :

 

Nature of

facility

Margin

Interest

Cash Credit

25%

PLR + 4%

Bill Discounted / Accepted Challans

10%

PLR + 4%

Term Loan

25%

PLR + 4%

Letter of

Credit

25%

As per FEDIA/RBI Rule

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

Central Bank of India

Ballard Estate Branch, Marshall Building, Shoorji Vallabhdas Marg, Mumbai – 400038, Maharashtra, India

6) Date  and brief description of instrument modifying the charge

Memorandum of Entry dated 25.07.2003, letter of hypothecation dt. 25.07.2003 agreement of hypothecation of machinery dated 25.07.2003, First supplemental agreement dated 25.07.2003 and agreement of hypothecation of goods to secure letter of credit dated 25.07.2003.

[all the above agreement constitute single modification on 25.07.2003]

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.

By first modification the existing limit of Rs. 9.700 millions has enhanced to Rs. 14.800 millions and company has provided additional security by way of deposit of title deed of the premises situated at Survey No. 272/1/4, Plot NO. 4, Dadra, Dadra & Nagar Haveli, Silvassa, aprox. admeasuring 1390 sq. mtrs. Along with hypothecation of various machineries :

[1] One open mixing roller

[2] One chilling plant of 20 tones capacity

[3] Five S. s. trolleys with wheels

[4] One number S. S. refrigerate or rack

[5] One number S. S. polythene sheets hanger

[6] One up stroke single acting, electrically heated rubber moulding, hydraulic press

[7] Three numbers electronic balance

[8] One number heat sealing machine

[9] Two numbers window type A.C. units

[10] One number computerized remoter

[11] One tensile testing machine

[12] One specific gravity balance

[13] One hand operated lab size hydraulic press

[14] One lab mixing mill

[15] One dumbbell cutting die

[16] Two aging oven

 

and any other machineries added from time to time of the borrowers which now o hereafter from time to time during the continues of the security hereby created shall be brought in or store or be in or abut the premises, warehoused or godowns of the borrower at anywhere else including the same be in transit or deliver or in or at any other premises in the occupation of the borrowers alongwith that all those movable specified in the principal agreement of hypothecation and the same were treated as the continues security to secure the said increased financial facility of Rs. 14.800 millions in accordance with the terms and conditions of the principal agreement.  The revised financial facility are as follows :

 

 Nature of facilities                  [Rs. in Millions]

Facility

Limit

FUND BASED LIMITS

C. C.

7.000

Bill Discount /

Accepted Challans

[1.500]

Term Loan/Import/L/C for Machinery

4.500

NON – FUND BASED LIMITS

Letter of Credit [Import / Inland DA/DP usance up to 90 days]

2.000

Bank Guarantee

1.300

 

 

Name of the company

DEVASHISH POLYMERS PRIVATE LIMITED

Presented By

Shri. Chandrakant Mody [Director]

[Name and Designation of the Official of the company]

1) Date and description of instrument creating the change

Memorandum of Entry dated 01.02.2003

Letter of Hypothecation dated : 01.02.2003

Agreement for Bill Discounting dated 01.02.2003, agreement of hypothecation to secure demand cash credit against goods dt. : 01.02.2003, letter of hypothecation dt. 01.02.2003, articles of agree. Dt. 01.02.2003 and agreement of hypothecation of goods to secure L/C [DA basis] dated 1st February, 2003. [All the above agreements constitute Single Charge created on 01.02.2003]

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

Rs. 9.700 millions

 

Nature of Facility

Rs. in Millions

Cash Credit

5.500

Bill Discount /

Accepted Challans

1.500

Term Loans

0.700

Letter of Credit [Import / Inland] DA/DP up to 90 days

2.000

Total

9.700

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

All the movable, immovable properties comprising inter alia machinery equipments, plants and spare parts which now or hereafter from time to time during these security shall belong to the borrowers whether the same may be in transit or which now or hereafter from time to time during the continuance of the security hereby created shall be brought in or stored or be in or about the premises, warehouses or godowns, of the borrowers at Survey No. 272/1/3, Dadra Demini Road, Village Dadra, Silvassa – 396191 or anywhere else including in transit or delivery or in or at any other premises in the occupation of the borrowers.

 

All tangible movable property such as products stock-in-trade and goods, whether finished or raw or in process or manufacture and all articles manufactured therefrom belonging to the borrowers which now or hereafter from time to time during the security shall brought in, stored or be in or about the premises warehouses or anywhere else or godowns of the borrowers situated at Survey No. 272/1/3, Dadra Demini Road, Village Dadra, Silvassa – 396191 inclusive of the Two Air-conditioner and partitions, and hypothecation of goods under import / inland letter of credit, as security for the above financial facilities.

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

To secure due repayment & discharge loan given to the company the rate of interest are as follows :

 

Nature of

facility

Margin

Interest

Cash Credit

25%

PLR + 4%

Bill Discounted / Accepted Challans

10%

PLR + 4%

Term Loan

25%

PLR + 4%

Letter of

Credit

25%

As per FEDIA/RBI Rule

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

Central Bank of India

Ballard Estate Branch, Marshall Building, Shoorji Vallabhdas Marg, Mumbai – 400038, Maharashtra, India

6) Date  and brief description of instrument modifying the charge

N.A.

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.

N.A.

 

AS PER WEBSITE

 

v      Incorporated in 1996.       

v      First Indian producer of specialty Rubber Compounds.

v      One stop-shop for rubber compounds materials.

v      Globally renowned "SUMMIT" rubber compounds.

v      Corporate office at Mumbai & Plant at Silvassa (Union Territory of India).

v      Technical Support from Japanese Rubber Company.

v      Expertise in Specialty Rubber Compounding Technology.

v      Supportive state-of-the-art laboratories

v      Capability in development of specialty rubber compounds.

v      Skills & equipment to engineer effective solutions for customers' specific requirements

v      An adaptable and flexible organic enterprise.

v      About 30% of production constitutes direct export to China, Philippines, Singapore, Middle East and European countries.

v      Customers' interaction through active participation in various International and National Rubber Exhibitions.

 

            DEVASHISH  MISSION & VISION ....

v      Market leadership in chosen segments.

v      Sizeable businesses in established industries with growth potential.

v      High value-added products and services for customers.

v      Technological edge through innovation.

v      Focus on quality and environmental safety.

 

"SUMMIT"  PRODUCT RANGE

 

DEVASHISH markets following globally renowned "SUMMIT" brand compounds for diverse and demanding technical applications and high-tech market-segments:

 

v      Fluoroelastomer (FKM/FPM)

v      TFE/P (AFLAS)

v      Polyacrylic (ACM)

v      Epichlorohydrin (ECO/CHC)

v      Poly-Urethane (PUR, AU, EU)

v      Hydrogenated Nitrile Rubber (H-NBR)

v      Ethylene Propylene Diene Monomer (EPDM)

v      Chlorinated Polyethylene (CPE)

 

“SUMMIT” COMPOUNDS’ TECHNICAL APPLICATION:

 

COMPRESSION/INJECTION MOULDING

v      O-rings

v      Gaskets

v      Oil Seals

v      Sealings

v      Diaphragms

v      Valve Stem Seals

v      Crank Shaft seals

CALLENDERED SHEETS

 

EXTRUDED/VULCANISED 

v      Hoses

v      Tubes

v      Profiles

v      Strips

v      Cords

AGGRESSIVE OIL/COOLANT BASE RESISTANT GOODS

 

"SUMMIT" COMPOUNDS’ HIGH TECH MARKET SEGMENTS:

 

v      Automotive

v      Railways

v      Defense

v      Aeronautics

v      Ships

v      Oil-Field

v      Petrochemicals

v      Electronics

v      Semiconductors

v      Office Automation

v      Other allied industries

 


"SUMMIT" COMPOUNDS’ STRENGTH:

"Consumer-oriented ready to use" compound materials are recommended due it's being "Value beyond the compound" to molders and end users.

 

 “SUMMIT” COMPOUNDS’ SELECTION PROCESS:

 

v      Competitive price due to scale up economy.

v      Batch-Batch uniformity.

v      Product Quality & Assurance supported with Test certificate.

v      Assistance in meeting stringent norms of Euro 2, Euro 3, Euro 4 & Euro 6 of advanced countries of U.S.A. / Japan / Europe.

v      Made available in customized mixes to meet specific requirement.

v      Safe material handling & storage resulting in increased product shelf life.

v      Ease of availability in varied packs 1 / 5 / 20 kg.

 

Management:  -

Chandrakant Mody (CEO) ckmody@devashishpolymers.com

- Nikhil Mody (Director)  nikhil@devashishpolymers.com

 

Research & Development rsch_devlp@devashishpolymers.com

 

Accounts: billing@devashishpolymers.com

 

Dispatch: dispatch@devashishpolymers.com

 

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.40.57

UK Pound

1

Rs.80.64

Euro

1

Rs.54.57

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

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