MIRA INFORM REPORT

 

 

 

Report Date :

02.12.2008

 

IDENTIFICATION DETAILS

 

Name :

THE STRUCTURAL WATERPROFFING COMPANY PRIVATE LIMITED

 

 

Registered Office :

Plot 38/1, Block-GN, Sector IV, V , Salt Lake City, Kolkata-700091, West Bengal.

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

21.03.1950

 

 

Com. Reg. No.:

21-18695

 

 

CIN No.:

[Company Identification No.]

U36992WB1950PTC018695

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELS06072D

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporters of all kinds of construction chemical like waterproofing, epoxies, plasticizers, roof waterproofing, flooring etc.

 

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.

Small

 

Maximum Credit Limit :

USD 287185

 

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

Comments :

Subject is an old and established company having moderate track.  Trade relations are fair.  The company‘s profitability is under severe pressure.

 

General financial position is weak having good amount of accumulated losses. No complaints have been heard from the market sources.

 

The company can be considered for small to mediocre business dealings.

 

LOCATIONS

 

Registered Office :

Plot 38/1, Block – GN, Sector IV V, Salt Lake City, Kolkata 700091, West Bengal, India

Tel. No.:

91-33-23573546 / 23573547

Fax No.:

91-33-23573881

E-Mail :

swccalcutta@satyam.net.in

Website :

www.swcpl.com

Area :

2200 Sq. ft.

Location :

Leased

 

 

Corporate Office :

Plot No. 1401/1, 3rd Phase, GIDC, Vapi – 396 195, Gujarat

Tel. No.:

91-260-2433928

Fax No.:

91-260-2433928

 

 

Plants :

  8/1, Sevak Vaidya Street, Kolkata – 700019

Area :

2200 sq. ft.

Location :

Leased

 

 

Branches :

B – 29, Sector – IV, District Ghaziabad, Gautam Buddha Nagar, Noida, Uttar Pradesh – 201301

Location : Leased

 

C-1-6124/6125, 4th Phase, G.I.D.C., Vapi- 396195, Gujarat, India

Location : Leased

 

G-6, Brown Nest Apartment, No. 73, 2nd Main Road, Gandhi Nagar, Adyar, Chennai – 600020, Tamilnadu

 

56, Mahavir Centre, Sector 17, Vashi, Navi Mumbai – 400703, Maharashtra

Tel. 91-22-27893601

Fax. 91-22-27893571

 

406, Deepali, 92, Nehru Place, New Delhi – 110 019

Tel. 91-11-26435432/26445680

Fax. 91-11-26221055/26416861

 

DIRECTORS

 

Name :

Mr. Arnaud Riou

Designation :

Director

Address :

Sunflower Garden, 74, Topsia Road [South], Kolkata 700046, West Bengal, India

Date of Birth/Age :

17.08.1970

Date of Appointment :

20.12.2006

 

 

Name :

Mr. Berge Charlespierre Eric

Designation :

Director

Date of Birth/Age :

28.06.1967

Date of Appointment :

20.12.2006

 

 

Name :

Mr. Shimana Gupta

Designation :

Director

Date of Birth/Age :

22.12.1976

Date of Appointment :

06.08.2001

 

 

Name :

Mr. Lubbertus Pieter Dijkema

Designation :

Director

Date of Birth/Age :

22.05.1958

Date of Appointment :

20.12.2006

 

 

Name :

Mr. Pascale Anne Dubreuil

Designation :

Director

Date of Birth/Age :

07.11.1966

Date of Appointment :

20.12.2006

 

 

Name :

Mr. Sumit Gupta

Designation :

Managing Director

Address :

CICO House, 21/1, Dover Road, Kolkata – 700 019, West Bengal, India

Date of Birth/Age :

06.02.1949

Qualification :

M. Sc.

Experience :

15 Years

Other Directorship :

Ř       CICO Dimet Private Limited

Ř       CICI Engineering Services Private Limited

Ř       CICO Finance Private Limited

Ř       CIC Holding Private Limited

Ř       FRC Composites India Limited

Ř       Payel Construction Chemical Private Limited

Date of Appointment:

02.11.1978

 

 

Name :

Mr. Jayanta Basu Roy

Designation :

Director

Address :

26/S/A Block B, New Alipur, Kolkata – 700053, West Bengal, India

Date of Birth/Age :

10.08.1941

Qualification :

B. Sc.

Experience :

15 Years

Date of Appointment :

01.03.2001

 

 

Name :

Mr. D K Chatterjee

Designation :

Director

Address :

416, Sector III, Salt Lake, Kolkata – 700091

Date of Birth/Age :

07.09.1941

Qualification :

M.Sc.

Experience :

15 Years

Date of Appointment :

07.11.2002

 

 

Name :

Mr. S R Raju

Designation :

Director

Date of Birth/Age :

23.05.1959

Experience :

15 Years

 

KEY EXECUTIVES

 

Name :

Rama Nath Saha

Designation :

Company Secretary

Address :

Samara Pally [Near Milan Bazar], Bloc No. 35, F/1 [Opposite Water Pump], Krishnapur, Kolkata, West Bengal, India

Tel. No.:

91-33-25715657

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

[As on 31.03.2008]

 

Names of Shareholders

 

No. of Shares

Sumit Gupta

 

32646

Shimana Guptachawla

 

25

 

 

 

Equity Share Break-up [As on 31.03.2007]

 

Percentage of Holding

Foreign Holdings

 

90.81

Directors or relatives of the Directors

 

9.19

Total

 

100.00

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporters of all kinds of construction chemical like waterproofing, epoxies, plasticisisers, roof waterproofing, flooring etc.

 

 

Products :

Product Description

Item Code No

 

Struco-N/Supaplast

3824.9

 

 

Brand Names :

"CICO"

 

 

Exports :

 

Countries :

Dubai, Maldives, Nepal, Russia and Sri Lanka

 

 

Imports :

 

Countries :

Australia, Germany, Italy, Japan, Taiwan and UK

 

 

Terms :

 

Selling :

Credit (30 days) or L/C

 

 

Purchasing :

L/C or Credit (30 days)

 

GENERAL INFORMATION

 

Suppliers :

·         DIMET, Australia

·         FRC Composites Limited, Canada

·         Thiokal Corporation, UK

·         Toshen Kaken Limited, Japan

 

 

Customers :

·         Hooghly River Bridge Corporation Limited

·         Metro Railway

·         National Hydro Power Corporation Limited

·         National Thermal Power Corporation Limited

·         Nuclear Power Corporation Limited

·         The Tata Iron & Steel Company Limited

·         Vishakhapatnam Steel Plant

·         Wholesalers, Manufacturers And Government Bodies

 

 

No.of Employees :

250

 

 

Bankers :

·         Allahabad Bank, Chennai, Tamilnadu

·         Allahabad Bank, 57, Park Street, Kolkata – 700 016, West Bengal

·         Allahabad Bank, Nehru Place, New Delhi – 110 019

·         Allahabad Bank, Vapi, Gujarat

·         HDFC Bank

·         UCO Bank, Main Branch, N. S. Road, Kolkata - 700001, West Bengal

Credit Limit : Rs. 20.000 Millions

 

 

 

Facilities :

v      SECURED LOANS

Loans and Advances from banks:-

Cash credit and Overdraft Facilities:

 

Rs .In Million

 

1)       Cash Credit facility is secured by hypothecation by way of first and exclusive charge on all present and future current assets inclusive of all stocks and Book debts and equitable mortgage of the properties as per valuation report of Bank’s approved valuer.

Additionally, comfort letter has been provided by the Holding Company, Chryso, and SAS for the entire borrowing facility of Rs. 160.000 Millions.

 

 

 

 

 

 

102.717

 

2)       Overdraft facility is secured by term deposits with the bank

 

 

Term Loans :-

(Secured by hypothecation of the vehicles of the Company)

4.155

 

v      UNSECURED LOANS

Other Loans and Advances:-

     From Banks

     (Due within one year Rs.1.709 Millions)

 

 

2.805

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

S. R BATLIBOI AND COMPANY

Chartered Accountants

Address :

22 Camac Street, Block C, 3rd Floor, Kolkata 700016, West Bengal, India

 

 

Memberships :
  • Confederation of Indian Industry

 

 

Associates :
  • CICO Engineering Services Private Limited
  • CICO Finance Private Limited
  • CICO Holding Private Limited
  • CICO Toshin Services Private Limited
  • FRC Composites India Limited
  • Payal Construction Chemical Private Limited 

 

 

Subsidiaries :
  • Cico Engineering Services Private Limited

             CIN No.: U33125WB1988PTC044846

  • CICO Dimet Private Limited
  • Cico Engineering Services Private Limited

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

200000

Equity Shares

Rs. 100/- each

Rs.20.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

125654

Equity Shares

Rs. 100/- each

Rs.12.565 Millions

 

Of the above

  1. 92,983 shares are held by Chryso SAS the holding company.
  2. 980 shares of Rs. 100/- each are allotted as fully paid up pursuant to contracts for consideration other than cash.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

12.565

4.670

4.670

2] Share Application Money

0.000

16.157

0.000

3] Reserves & Surplus

95.483

56.082

55.691

4] (Accumulated Losses)

(50.611)

0.000

0.000

NETWORTH

57.437

76.909

60.361

LOAN FUNDS

 

 

 

1] Secured Loans

106.872

109.346

106.223

2] Unsecured Loans

2.805

5.659

4.060

TOTAL BORROWING

109.677

115.005

110.283

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

167.114

191.914

170.644

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

28.404

20.568

17.716

Capital work-in-progress
3.560
0.000

0.000

 

 

 

 

INVESTMENT

1.314

1.314

1.162

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
99.385
81.112

60.153

 

Sundry Debtors
156.237
154.483

155.304

 

Cash & Bank Balances
28.051
16.816

29.531

 

Other Current Assets
0.638
0.125

0.448

 

Loans & Advances
44.214
37.974

31.868

Total Current Assets
328.525
290.510

277.304

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Current Liabilities
192.796
117.141

119.763

 

Provisions
1.893
3.337

5.775

Total Current Liabilities
194.689
120.478

125.538

Net Current Assets
133.836
170.032

151.766

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

167.114

191.914

170.644

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

500.639

344.300

410.649

Other Income

6.651

6.760

1.367

Total Income

507.290

351.063

412.016

 

 

 

 

Profit/(Loss) Before Tax

(46.646)

4.365

13.111

Provision for Taxation

5.463

3.976

4.865

Profit/(Loss) After Tax

(52.109)

0.389

8.246

 

 

 

 

Earning in Foreign Currency

NA

NA

1.752

 

 

 

 

Total Imports

NA

NA

7.535

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

102.611

 

Salaries, Wages, Bonus, etc.

 

 

14.184

 

Payment to Auditors

 

 

0.062

 

Interest

 

 

12.267

 

Insurance Expenses

 

 

0.282

 

Power & Fuel

 

 

2.256

 

Other Expenditure

 

 

267.243

Total Expenditure

553.936

346.698

398.905

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

PAT / Total Income

(%)
(10.27)
0.11

2.00

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
(9.31)
1.26

3.19

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(12.89)
1.39

44.44

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.81)
0.05

0.21

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
5.30
3.06

3.90

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
1.69
2.41

2.20

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Note:

The situation of the registered office of the company was changed from CICO House, 21/1, Dover Road, Kolkata – 700 019, West Bengal, India to Plot 38/1, Block – GN, Sector IV V, Salt Lake City, Kolkata 700091, West Bengal, India w.e.f. 01.12.2006.

 

 

DIRECTOR’S  REPORT:-

 

Operations

 

The Directors report that the company achieved 45.4% growth in net sales. Gross turnover was Rs.555.000 millions in the financial year; net turnover was Rs.507.000 millions. Gross revenue from the million business of marketing construction chemicals was Rs.433.000 millions recording a exceptional growth of 61%.

           

Sale of services in the risk prone business of providing contracting services declined by 30% to Rs.76.000 millions. This is in line with strategy to focus on marketing of concrete admixtures and concrete aids backed by R and D and technical service to Customers at their plant level.  The company has achieved significant penetration of the growing Ready Mixes Concrete business segment in East and West to build on its strengths in projects.  The Noida plant capacity was unlocked by debottlenecking to supply the prestigious Delhi Airport order.

 

The branded lubricant business growth was handsome; the business is self sufficient in funds but has not generated cash for other initiatives.

           

The internationally valued Chryso Cement grinding aids and performance enhancers product portfolio was introduced in India.  In this financial year it was successfully introduced in Eastern India for Portland slag cement (PSC) in major plants and mini cement plants. Marketing roll out to all cement manufacturing clusters have been planned for next fiscal.

           

Provision has been made for Rs.38.200 millions for doubtful debts; the losses on contracting business have been booked with the systematic closing of time delayed job contacts.  The total loss on this account and past period expenses is Rs.31.000 millions.  The million business made a low profit of Rs.17.300 millions or 4% net profit after interest and tax.

           

The company is in the process of upgrading the system of fixed assets verification and uploading the values in the ERP system.  The values in the books for fixed assets are under reconciliation for all location and the asset register put in place.

           

Sundry Debtors balances, advances to suppliers and certain deposits are under process of being reconciled and confirmations being obtained wherever felt necessary, post provisioning of Old and non recoverable debtors and uploaded in the ERP system.

           

The company maintains barrels stock records at its factories and worksites.  However barrels stocks lying at remote sites and customers are being reconciled and records uploaded.

 

 

Form 8

 

Bankers Charges Report as per Registry

 

This Form is for

Modification of Charge

Charge identification number of the charge to be modified

10068351

Corporate identity number of the company

U36992WB1950PTC018695

Name of the company

THE STRUCTURAL WATERPROOFING COMPANY PRIVATE LIMITED

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

Plot 38/1, Block – GN, Sector IV V, Salt Lake City, Kolkata 700091, West Bengal

Type of charge
  • Book Debts
  • Movable Property
  • Floating Charge

Particular of charge holder
  • HDFC Bank Limited

HDFC Bank House Senapati Bapat Marg, Lower Parel [West], Mumbai 400013, Maharashtra, India

E-mail: rbbform8@hdfcbank.com

 

Nature of description of the instrument creating or modifying the charge

Supplemental Letter of Hypothecation of Stocks And Book debts

Date of instrument Modifying the charge

07.086.2008

Amount secured by the charge

Rs. 165.000 Millions

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

[a] Rate of interest

Interest at the rate as may be communicated by the Bank from time to time.

 

[b] Terms of repayment

On demand

 

[c] Margin

Company shall at all times during the continuance of this security maintain the said debts of a sufficient amount to provide the margin of security as may from time to time advised by the Bank.

 

[d] Extent and operation of the charge

Hypothecation by way of first charge on  Stocks, Book Debts, etc. to secure as a continuing Security for repayment of monies due and payable by the Company to the Bank.

Short particulars of the property charged

Hypothecation by way of first charge over the Stocks and Book debts.

Date of latest modification prior to the present modification

09.08.2007

 

 

AS PER WEBSITE DETAILS:

MANUFACTURING UNITES AND CONTRACT DIVISION:

Subject has modern manufacturing facilities in NOIDA (New Delhi), SALT LAKE CITY (Calcutta), VAPI (Gujarat) and AMBATTUR (Chennai). All these plants have sophisticated high volume facilities and fully equipped testing laboratories. Without compromise on men, material or technology, these plants manufacture a wide range of, concrete admixtures, cement additives, waterproofers, water sealers, floorings, liquid membrane coatings, curing compounds, cement grouts, chemical grouts, polysulphide sealants, repair mortars etc;all indispensable components for today’s Construction Industry.

Responding to the emerging needs of the construction industry, SWC set up its own technical team

"CONTRACT DIVISION", which works towards resolving problems requiring expertise in waterproofing, water stoppage, and corrosion protection. SWC’s endeavor is to interact with customers, to understand their problem areas, meet consultants regularly to provide need based solutions and to offer performance guarantees, and know how, perfected over years of experience.

SWC has ventured into the area of INDUSTRIAL LUBRICANTS recently. CHEKO LUBES, a Strategic Business Unit (SBU) of the company, has exclusive distributorship of EXXON MOBIL, in critical parts of East India.

Their quest has not ended here. SWC has introduced the concept of semi prefabricated fast track housing called SWC MONOLITE HOUSING SYSTEM.  

COLLABORATION AND TIE UPS

Subject has developed products to suit conditions prevalent at work sites. Instead of adopting standardized product formulations, SWC has tied up with world leaders in specific areas, introduced their products to its RandD for fine tuning in order to adopt them to the needs of the Construction Industry. SWC acquires technology from the best available sources internationally and has various collaborators and tie-ups.

PRODUCTS:

PROJECTS

 

NEWS

 

SWC HAS NOW BEEN RATED HIGHEST PERFORMANCE CAPABILITY ORGANISATION"

 

"SWC BAGS THE SINGLE LARGEST WATERPROOFING CONTRACT EVER AWARDED TO A CONSTRUCTION CHEMICAL COMPANY"

 

SWC, is a name that has been a very familiar and trusted one in the Indian Construction Industry. In 1930,when The Structural Waterproofing Co.(SWC) was established , it was a company to meet the needs of the times. At that time, SWC, had only one product by the name of CICO No.1. an integral waterproofing compound. The long sightedness and perseverance of the company’s management , along with the main guiding principles of Quality, Integrity and Service, gave SWC the impetus it required, and it started growing slowly, but surely.


SWC bagged the single largest waterproofing contract ever awarded to a Construction Chemical Company where in our hydrophilic joint sealant – “SWELL SEAL STRIP AND MASTIC”, “ELASTOTHANE” – Single Component Moisture Cured Polyurethane and “TAPELASTIC” - Flexible Cementitious Membrane, apart from APP Modified ‘Torch-on-Membrane’ has been extensively used which has proved to be very effective in waterproofing the critical areas in the underground structure of the recently commenced DELHI METRO.

 

"SWC starts a new Manufacturing Unit in Ambattur , Chennai."

In it's Platinum Jubilee year, SWC started a new manufacturing unit in Chennai, with large orders pending

 

 

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.50.09

UK Pound

1

Rs.76.68

Euro

1

Rs.63.48

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

35

 

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