MIRA INFORM REPORT

 

 

Report Date :

21.09.2007

 

IDENTIFICATION DETAILS

 

Name :

PASUPATI FABRICS LIMITED

 

 

Registered Office :

F – 58, Okhla Industrial Area, Phase – 1, New Delhi - 110020

 

 

Country :

India

 

 

Financials (as on) :

31.03.2004

 

 

Date of Incorporation :

27.11.1991

 

 

Com. Reg. No.:

046549

 

 

CIN No.:

[Company Identification No.]

U99999DL1991PLC046549

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELP09749F

 

 

PAN No.:

[Permanent Account No.]

AAACP1338B

 

 

Legal Form :

Closely held Public Limited Liability Company

 

 

Line of Business :

Manufacturing of Bleached, Dyed and Printed Fabrics.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

--

 

 

Status :

Poor

 

 

Payment Behaviour :

Slow

 

 

Litigation :

--

 

 

Comments :

Subject is an old company having poor track. Company’s profitability is under severe pressure. It has huge accumulated losses. Payments are reported as slow and delayed.

 

The company can be considered for any business dealings on fully safe and secured trade terms and conditions only

 

 

LOCATIONS

 

Registered Office :

F – 58, Okhla Industrial Area, Phase – 1, New Delhi - 110020

Tel. No.:

91-11-26371491 to 95

Fax No.:

91-11-26371496

E-Mail :

info@pasupati.com

Website :

www.pasupati.com

 

 

DIRECTORS

 

Name :

Mr. Vijay Kumar Jain

Designation :

Director

Address :

FRH No. 4, Grand Parady Appt., A.K. Marg, Mumbai – 400036, Maharashtra

Date of Birth/Age :

08.10.1948

Date of Appointment :

27.11.1991

 

 

Name :

Ms. Poonam Kumar Manshani

Designation :

Director

Address :

A – 5C / 28A, Janak Puri, New Delhi – 110058

Date of Birth/Age :

20.06.1956

Date of Appointment :

27.11.1991

 

 

Name :

Mr. Surain Singh Dhanoa

Designation :

Director

Address :

40, Munirka Enclave, New Delhi – 110067

Date of Appointment :

19.08.1994

 

 

Name :

Mr. J.S. Varshneya

Designation :

Director

Address :

21, Jay Shree, 75, Worli Sea Face, Mumbai – 400025, Maharashtra

Date of Birth/Age :

08.07.1929

Date of Appointment :

29.04.1999

 

 

Name :

Mr. Mithileash Kumar Sinha

Designation :

Director

Address :

1604, Orchid Film City Road, Malad (East), Mumbai – 400097, Maharashtra

Date of Birth/Age :

02.09.1935

Date of Appointment :

30.04.2001

 

 

 

Name :

Mr. Deepak Gupta

Designation :

Director

Address :

IDBI, Red Cross Society Building, 1. Red Cross Road, New Delhi – 110001

Date of Birth/Age :

17.01.1961

Date of Appointment :

18.01.2002

 

 

Name :

Mr. Devengra Kumar Jain

Designation :

Director

Address :

B – 605, Sai Srishti, LBS – Marg, Bhandup (West), Mumbai – 400078, Maharashtra

Date of Birth/Age :

13.12.1954

Date of Appointment :

13.10.2005

 

 

Name :

Mr. Vineet Kumar

Designation :

Director

Address :

41, Shreyas, 6th FLR, Nariman Point, Opp. Air India, Mumbai – 400020, Maharashtra

Date of Birth :

23.09.1949

Date of Appointment :

04.12.2006

 

 

Name :

Mr. Devendra Kumar Sampatraj Jian

Designation :

Director

Address :

UPSIDC 3, Delhi Agra National highway, Kosikalan - – 281403, Uttar Pradesh

 

 

Key Executive

 

Name :

Mr. Rakesh Dhody

Designation :

Secretary

Address :

R – 607, New Rajinder Nagar, New Delhi - 110060

Date of Appointment:

19.09.2005

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Mr. Vijay Kumar Jain

 

10

Ms Poonam Manshani

 

10

Mr. Suresh Thsus

 

10

Mr. Chander Shekhar Gupta

 

10

Mr. Mukesh Jain

 

10

Mr. Ramesh Jain

 

10

Mr. Rajan Gupta

 

10

Category

 

Percentage of Holding

Public Financial Companies

 

40.85

Nationalized or other banks

 

0.34

]Mutual funds

 

0.09

FIIs / FCs / NRIs / OCBs

 

0.04

Bodies corporate (not mentioned above)

 

53.96

Directors or relatives of directors

 

0.85

Other top fifty shareholders

 

1.28

Indian public

 

2.59

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Bleached, Dyed and Printed Fabrics

 

 

Exports :

 

Countries :

USA, Canada, South America, Europe, Middle East, Far Eastern Countries

 

 

 

PRODUCTION STATUS

 

Particulars

 

Unit

Installed Capacity

Actual Production

Cotton Yarn

 

Spindles

25200

--

Cotton fabrics –

Cotton Shirting

Bed Sheeting

 

 

Lacs Mts

Lacs Mtrs

 

29

103

 

--

--

Grey Fabrics

 

Lacs Mtrs

--

106.87

Processed Fabrics

 

Lacs Mtra

--

85.43

 

 

 

 

 

 

 

GENERAL INFORMATION

 

Suppliers :

˛      Friends Cable

˛      Laser Code Printographic

˛      Janatics India

˛      M.K. Packaging

˛      Nova Transfer Private Limited

˛      Printographik

˛      Chaudhari Label

˛      Dass Associates

˛      Supertex

˛      Jupiter Engineering

˛      Swastik Technomech

˛      Vikas Polymer

˛      Sun Control

˛      NEPZ Industries

 

 

Bankers :

State bank of Bikaner and Jaipur

71-72, Laxmi bhawan, Nehru Place, New Delhi - 110019

 

 

Facilities :

Particulars

31.03.2004

Secured Loans

 

A)Term Loans

1. Industrial Development Bank of India

       - Rupee Tied Up Term Loan

       - FITL Pending Conversion into equity shares

       -- Duffered Interest

        -- Interest Accured and due

 

 

686.916

230.000

41.955

24.956

2. From State Bank of India

      -Rupee Tied Up Term Loan

      -0% Funded Interest Term Loan

      - Deffered Interest (interest free)

      -Interest accrued and due

 

451.058

170.000

27.465

16.326

B) Working Capital Loans

      -Packing Credit Loan

      -Foreign Bills Purchased

      -Foreign Bills Negotiated Under L/C

 

75.868

24.241

76.566

C) Other

    -Vehicle Loan on Hire Purchase

     -Less: Interest Suspense Account

 

1.491

0.061

Total

1826.785

 

 

A. Term Loans

1. The term loans under rupee loan from IDBI and SBI are secured by the following stipulation:

 

a. First  mortgage and charge on all the immovable and movable assets, present and future of the company ranking pari-passu between IDBI and SBI and reciprocal second charge on current assets of the company on pari – passu basis between IDBI and SBI. The loans are additionally secured by personal guarantee of two directors and corporate guarantee of companies controlled by Shri Vijay Kumar Jain  * Director and Chairman of Wave Inter Trade Private Limited, Pyramid Trading and Finance Limited, Tohee Trading and Agencies Private Limited and Embassy Finance and Consultants Private Limited. Further the shares held by Shri Vijay Kumar Jain and the shares held by investment companies controlled by him are to pledged with voting right vested in IDBI and SBI.

 

B. The corporate guarantee of companies controlled by Shri Vijay Jain have been in favour of SBI in respect of Funded interest term loan o fRs.179.500 millions and Rupee term loan of Rs.150.100 millions existed prior to restricting as per rehabilitation package approved by BIFR which is to be created a fresh in favour of both IDBI and SBI as per the rehabilitation scheme approved y the BIFR.

 

2. The relief and concessions approved by the board for industrial and financial reconstruction (BIFR) in the meeting held on 5.02.2004 with cut off date as at 31.03.2003, the term loans due to financial institution and bank have been restructured inter-alia with the following terms and conditions.

 

A. 10% of the principal loan due to financial institution (IDBI) Rs.76.324 millions and bank SBI Rs.50.083 millions to be paid as upfront / down payment before the end of March, 2004 since paid.

 

B. The equity share capital is to be written down by 35% and in lieu thereof company to issue 0.001% redeemable preference shares to be redeemed at par in 8 equal quarterly installments commencing from April, 2015

 

C. To issue equity shares of Rs.230.000 millions to IDBI towards conversion of overdue interest and the promoters to but back from their own sources i.e. Rs.57.500 millions. Rs.57.500 millions and Rs.115.000 millions in 5th, 6th, and 7th years respectively at par or market price whichever is higher, subject to having first right of refusal by them.

 

D. 0% funded interest term loan of Rs.170.000 millions of SBI is repayable in 16 equal quarterly installments commencing from June, 2009

 

E. Interest on term loan to IDBI and SBI is payable @11%p.a. however interest @7% p.a. is payable for the period 51/2 years from 1st October, 2003 upto 31.03.2009 and interest @9% pa. for the period from 01.04.2009 upto 31.03.2014. Differential interest @4% (11% 7%) and 2% (11% 9%) is to be deferred on interest free basis.

 

F. The balance term loan from IDBI and SBI after 10% upfront / down payment are repayable in 40 quarterly installments commencing from 30.06.2004

 

G. Deferred interest on interest free basis will consist of interest @11%p.a. for the period form 01.06.2003 to 30.09.2003 and differential interest @4% (11% 7%) for the period from 1.10.2003 to March 2009 and @2% (11%- 9%) for the period from April, 2009 to March 2014 and aggregate amount of deferred interest is payable in 4 quarterly installments commencing from 30.06.2014.

 

H. The due dates for repayment of installments / interest are 31.03.. 30.06, 30.09 and 31.12

 

3. The Rehabilitation scheme approved by board for industrial and financial reconstruction (BIFR) is subject to executed of document and compliance of terms and conditions stipulated in the sanction letters of IDBI and SBI. The effect of the scheme only to the extent of reduction in interest liability has been given in the accounts and in respect of other terms and conditions; effects will be given on receipt of necessary approvals from the respective authorities.

 

B. Working capital loans

 

Working capital loans are secured by way of hypothecation of inventories viz stock of raw materials, work in process, finished goods, stores and spares, packing materials, book debts and other current assets on first charge basis on pari passu between UCO and SBBJ. The above limits are further secured by way of second charge on reciprocal basis with IDBI and SBI on all fixed assets of the company both existing as well as future. The working capital limits are further secured by personal guarantee of Shri Vijay Kumar Jain (CMD). The company has pledged fixed deposit amounting to Rs.4.500 millions as collateral security in favour of bankers for release of proposed additional packing credit loan.

 

 

 

Unsecured Loans

57.899

Inter Corporate Loans

 

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

N. D. Kapur & Company

Chartered Accountants

 

 

Associates/Subsidiaries :

˛      Priyanka Overseas Limited

˛      Pasupati Spinning and Weaving Mills Limited

 

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

90000000

Equity Shares

Rs.10/- each

Rs.900.000 millions

 

Issued Capital :

No. of Shares

Type

Value

Amount

73880070

Equity Shares

Rs.10/- each

Rs.738.800 millions

 

Subscribed Capital

No. of Shares

Type

Value

Amount

70694370

Equity Shares

Rs.10/- each

Rs.706.943 millions

 

Less : Allotment money in arrears

  - From other than directors

 

Rs.52.453

 

Total

 

654.490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2004

31.03.2003

31.03.2002

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

654.490

654.285

654.300

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(918.580)

(1970.793)

(1387.800)

NETWORTH

(264.090)

(1316.508)

(733.500)

LOAN FUNDS

 

 

 

1] Secured Loans

1826.785

3140.721

2736.600

2] Unsecured Loans

57.899

59.104

59.100

TOTAL BORROWING

1884.684

3199.825

2795.700

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1620.594

1883.317

2062.200

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1324.632

1551.068

1737.100

Capital work-in-progress

21.403

20.999

06.500

 

 

 

 

INVESTMENT

0.000

0.001

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

168.487

146.949

154.000

 

Sundry Debtors

107.119

67.109

78.800

 

Cash & Bank Balances

13.594

71.363

48.500

 

Other Current Assets

0.173

1.255

0.000

 

Loans & Advances

106.178

116.657

93.000

Total Current Assets

395.551

403.333

374.300

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities

131.983

109.593

72.800

 

Provisions
 

 

04.100

Total Current Liabilities

131.983

109.593

76.900

Net Current Assets

263.568

293.740

297.400

 

 

 

 

MISCELLANEOUS EXPENSES

10.991

17.510

21.200

 

 

 

 

TOTAL

1620.594

1883.317

2062.200

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2004

31.03.2003

31.03.2002

Sales Turnover

887.914

885.912

719.200

Other Income

7.969

8.517

06.200

Total Income

895.883

894.429

725.400

 

 

 

 

Profit/(Loss) Before Tax

(327.408)

582.967

(482.800)

Provision for Taxation

0.034

0.030

0.000

Profit/(Loss) After Tax

(327.442)

(582.937)

(482.800)

 

 

 

 

Earnings in Foreign Currency :

 

 

 

Export Earnings

331.300

494.248

NA

 

Commission Earnings

1.605

9.286

 

Total Earnings

332.905

503.534

 

 

 

 

 

Import

 

 

 

 

 

 

 

 

Capital Goods

31.538

30.002

NA

 

Components and Spares Parts

1.361

19.784

 

Total

32.899

49.786

 

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

44.311

49.057

125.100

 

Selling and Distribution Expenses

40.323

42.059

57.400

 

Raw Material Consumed

433.448

333.529

270.200

 

Employees Expenses

73.639

66.936

54.600

 

Consumption of stores and spares parts

138.209

124.850

0.000

 

Increase/(Decrease) in Finished Goods

27.571

4.812

29.400

 

Interest

137.276

459.101

385.500

 

Administrative Overhead

34.249

39.817

0.000

 

Power & Fuel

128.775

128.008

96.600

 

Depreciation & Amortization

218.433

235.930

230.800

 

Miscellaneous Expenditure Written Off

2.198

2.918

04.400

Total Expenditure

1278.432

1487.017

1254.000

 

 

 

  SUMMARISED RESULTS

 

 

PARTICULARS

 

 

31.03.2006

Full Year

31.03.2005

Full Year

Sales Turnover

 

799.600

820.600

Other Income

 

136.400

03.500

Total Income

 

936.000

824.100

Total Expenditure

 

885.900

712.400

Operating Profit

 

50.100

111.700

Interest

 

158.000

148.300

Gross Profit

 

(107.900)

(36.600)

Depreciation

 

236.700

233.300

Tax

 

0.000

0.000

Reported PAT

 

(344.600)

(269.900

Dividend (%)

 

0.000

0.000

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2004

31.03.2003

31.03.2002

Debt Equity Ratio

 

0.00

0.00
0.00

Long Term Debt Equity Ratio

 

0.00

0.00
0.00

Current Ratio

 

1.56

1.94
1.72

TURNOVER RATIOS

 

 

 
 

Fixed Assets

 

0.37

0.37
0.30

Inventory

 

5.72

5.99
5.74

Debtors

 

10.36

12.35
10.04

Interest Cover Ratio

 

(1.38)

(0.27)
(0.25)

Operating Profit Margin (%)

 

3.15

12.43
18.56

Profit Before Interest and Tax Margin (%)

 

(21.07)

(13.75)
(13.53)

Cash Profit Margin (%)

 

(12.07)

(38.53)
(35.04)

Adjusted Net Profit Margin (%)

 

(36.29)

(64.71)
(67.13)

Return on Capital Employed (%)

 

0.00

0.00
0.00

Return on Net Worth (%)

 

0.00

0.00
0.00

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Fixed Assets:

 

˛      Land

˛      Building

˛      Plant and Machinery

˛      Office Equipments

˛      Furniture and Fixtures

˛      Vehicles

 

Form 8:

Name of the company

PASUPATI FABRICS LIMITED

Presented By

Chief Manager – State Bank of Bikaner and Jaipur

1) Date and description of instrument creating the change

Agreements Dt. 24.03.2000 for hypothecation of goods and assets to secure EPC (hyp). FBP / FBD (Doc). Letter of credit and bank guarantee. Copies of Forms C – 1 and C – 2 are enclosed

(Registered on 29.03.2000)

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

Rs.25.625 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

First charge on current assets of the company ranking pari passu with commercial banks hypothecation of raw materials. Stock in process, finished goods consumables stores and spares. Inward RR / MTRs / Bill of alading and other documents

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

1. Hypothecation of raw materials, stock in process, finished goods, consumable stores and spares. Inward RR / MTRs/ Bill of lading and other documents ranking pari passu basis among the consortium banks

2.  All collaterals to cover facility

3. Basis of valuation will be as per market price / cost of production / invoice price / contracted price whichever I slower

4. interest rate 10% subject to charge by RBi

5. The company has been sanctioned following working capital facilities by the bank

 

EPC (hyp)   125.00

FBP / FBD (Docy)  100.00

Letter of Credit  25.00

Bank Guarantee  6.25

 

6. A marginal of 20% on the raw materials, stock in process, stores and spares and finished goods to maintained

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

State bank of Bikaner and Jaipur

71-72, Laxmi bhawan, Nehru Place, New Delhi - 110019

6) Date  and brief description of instrument modifying the charge

Supplemental agreement dt.18.01.2006 of hypothecation of goods and assets for increase in the overall limit to secure packing credit / bills purchase limit – L/C limit / bank guarantee

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.

Stock in process, finished good an pacing materials and books debts an other current assets on 1st charge created in favour of UCO bank, new Delhi

 

Hypothecation of assets described above and such assets of the nature mentioned in above. As are as may at nay time be in the possession or power of the company to secure a packing credit loan / foreign bills purchased o fRs.25.625 millions and adhoc additional L/C limit of Rs.15.000 millions on the basis for procurement of cotton and other applicable to such advances with monthly rests or at such rate as may form time to time be fixed by the bank notified to the borrower and with the power to bank in the event of default to seize appoint received and realize.

 

 

Directors Report

 

They have audited the attached balance sheet of subject as at 31.03.2004, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company’s management. Their responsibility is to express an opinion on these financial statements based on their audit

 

The conducted their audit in accordance with auditing standards generally accepted in India. Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining on a test basis, evidence supporting the amounts and disclosure in the financial statements. An audit also includes assessing the accounting principals used and significant estimates made by management as well as evaluating the overall financial statement presentation. They believe that their audit provides a reasonable basis for their opinion.

 

 

 

 

As per Web Details

 

Company Profile:

 

Subject is part of the multi-dimensional Group of companies which today is one of India's leading corporate houses.
Subject was established as a 100% Export Oriented Unit - vertically integrated composite textile mill.
Subject today is a symbol of modern technology, latest machinery, rigid raw material selection, computerized control systems and a very well trained man power making it one of the leaders in the industry in a short period

Manufacturing

Pasupati Fabrics Ltd. is India's first 100% Export Oriented Composite Textile Unit with Spinning, Weaving and Printing under one roof and consists of 25,200 Ring spindles, 96 Picanol Air Jet Looms 24 Sulzer Projectile Looms and Zimmer Rotary screen printing machines at UPSIDC III, 99 Km. Stone, Delhi Agra National Highway, Kosi Kalan - 281 403, Distt. Mathura (UP) India

Quality Assurance

High Precision Laboratory equipments, consisting of Spinlab and Uster Equipment, ensure continuous monitoring of cotton, sliver and yarn. All the lab equipments have been imported from World renowned manufacturers namely Uster, Switzerland and Keisokki, Japan.

 

 

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.39.87

UK Pound

1

Rs.80.11

Euro

1

Rs.56.19s

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

-

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

-

--CREDIT LINES

1~10

-

--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

YES

--OTHER MERIT FACTORS

YES/NO

NO

TOTAL

 

13

 

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.

 

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