MIRA INFORM REPORT

 

 

 

Report Date :

17.11.2008

 

IDENTIFICATION DETAILS

 

Name :

GTFC LIMITED

 

 

Registered Office :

2/1, Subrayan Street, Nugambakkam, Chennai – 600034, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

05.11.1997

 

 

Com. Reg. No.:

18-39365

 

 

CIN No.:

[Company Identification No.]

U19201TN1997PLC039365

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEG02177A

 

 

PAN No.:

[Permanent Account No.]

AAACG3816B

 

 

Legal Form :

Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Trader of Footwear Components.

 

 

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 190000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per commitments.

 

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

 

 

INFORMATION PARTED BY

 

Name :

Mr. G Kumar

Designation :

Manager

Contact No.:

91-9840153520

Date :

15.11.2008

  

 

LOCATIONS

 

Registered Office :

2/1, Subrayan Street, Nugambakkam, Chennai – 600034, Tamilnadu, India

Tel. No.:

91-44-42066006 / 25206606/ 28213490

Mobile No.:

91-9840153520

Fax No.:

91-44-28268182/ 28213264

E-Mail :

gmfinance@gtfcltd.com

gtfcfcty@md2.vsnl.net.in

info@supersight.net

manageraccts@gtfcltd.com

Website :

http://www.gtfcltd.com

Area :

6000 sq ft

Location :

Rented

 

 

Factory  :

Footwear Component Park, 105 Gundu Salai, Oulgaret, Pondicherry – 605010

Tel. No.:

91-413-2292782 / 2290026

Fax No.:

91-413-2291871

E-Mail :

gtfcfcty@md2.vsnl.net.in

Area :

30000 sq ft

Location :

Rented

 

 

Warehouse :

Room No 10/15, Lyyan Kuttipplayam, Pondichery

Tel. No.:

91-413-2278047

Area :

2000 Sq. ft.

Location :

Rented

 

 

Overseas Offices :

GTFC Europe Limited

10/10A, Arthur Street, London, EC4R 9AY, United Kingdom

Tel: +44 207 0961 501
Fax: +44 207 9295 441

 

Shoe Club Limited

Via 2 Giugno 2/B, 30032 Fiesso D Artico (VE), Italy

Tel: +39 0335 6678 176
Fax: +39 041 5160 676

 

 

DIRECTORS

 

Name :

Mr. Utsav Seth

Designation :

Managing Director

Address :

Flat 1-A, First Floor, 28, Cenotaph Garden, Cenotaph Road, 1st Street, Teynampet, Chennai – 600 018, Tamilnadu

Date of Birth/Age :

35 years

Qualification :

MBA and Undergone Shoe Technology Course from UK

Experience :

15 years

Date of Appointment :

21.10.1997

 

 

Name :

Mr. B. Nanban

Designation :

Director

Address :

Harish Apartments, 22c, 19th Avenue, Ashok Nagar, Chennai - 600083

Date of Birth/Age :

40 years

Experience :

15 years

Date of Appointment :

10.12.1997

 

 

Name :

Mr. Ritesh Tandon

Designation :

Director

Address :

Flat No 3B, 3rd Floor, Block 1, Vijayshanti Krsna, Old No 36, New No 50, Halls Road, Egmore, Chennai – 600008, Tamilnadu

Date of Birth/Age :

34 years

Experience :

12 years

Date of Appointment :

12.07.2001

 

 

Name :

Mr. Prem Kumar

Designation :

Director

Address :

No 3, Sathyalog, 1st Street, New Colony, Thiru Nagar, Vellore - 632009

Date of Birth/Age :

40 years

Experience :

14 years

 

 

Name :

Mrs. Manjari Seth

Designation :

Director

Address :

Flat 1-A, First Floor, 28, Cenotaph Garden, Cenotaph Road, 1st Street, Teynampet, Chennai – 600 018, Tamilnadu

Date of Birth/Age :

32 years

Experience :

10 years

Date of Appointment :

01.01.2001

 

 

Name :

Mr. Vivek Mehrotra

Designation :

Director

Address :

1-A, First Floor, 28, Cenotaph Garden, Cenotaph Road, 1st Street, Teynampet, Chennai – 600 018, Tamilnadu

Date of Birth/Age :

15.08.1957

Date of Appointment :

30.05.1998

 

 

Name :

Mr. P Ganeshan

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. AXN Prabhu

Designation :

Practicing Company Secretary

Address :

4, Montieth Road, Egmore, Chennai - 600008, Tamilnadu

 

 

Name :

Mr. G Kumar

Designation :

Account Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2005

 

Names of Shareholders

 

No. of Shares

 

Ms. Manjari Seth

 

416743

Hold Ford Investments Limited

 

222111

Mr. Ravi Mehrotra

 

666343

Mr. Utsav Seth

 

59360

Mr. B. Nanban

 

31943

Mr. Ritesh Tandon

 

8422

Supersight India Limited

 

502644

Mr. Vivek Mehrotra

 

2223

Mr. N. Krishnaveni

 

22185

Mr. Saurabh Mehrotra

 

233

Mrs. Neha Tandon

 

24300

Mr. Deepak Tandon

 

2340

Mr. M. L. Mehrotra

 

117

Mrs. M. L. Mehrotra

 

117

Mrs. Shalini Tandon

 

2223

Mr. GP. Seth

 

1842

Seth Ramji Das and Sons

 

102678

Mr. GP. Seth (HUF)

 

31220

Mr. Sashi Seth

 

29762

Mr. gaurav Seth

 

1860

Mrs. Sheeba Seth

 

1668

Mrs. Thanya Seth

 

3290

Mrs. Mahima Seth

 

2695

Total

 

2136319

 

As on 30.09.2007

Equity Share Breakup (Percentage of Total Equity ) 

Category

 

 

Percentage

Foreign holdings (Foreign institutional investor(s), Foreign financial institution(s), Non-resident indian(s) or Overseas corporate bodies or Others

 

10.40

Bodies corporate (not mentioned above)

 

28.33

Directors or relatives of directors

 

61.15

Other top fifty(50) shareholders (other than  Listed above)

 

0.12

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Footwear Components.

 

 

Products :
  • Insoles
  • Toe Caps and Counters
  • Steel Shanks
  • Resin Soles

 

 

Agencies Held :

v      Rhenoflex GmbH, Germany

v      Konus Konex, Solovenija

v      Costchem, Italy

v      Oxley Threads, UK

v      Tempel

v      Texon Mochmuhl GmbH

v      Bartoli

 

 

Exports :

 

Products :

Footwear Components

Countries :

Europe and USA

 

 

Imports :

 

Products :

Raw Material and Thermoflex

Countries :

Germany, Italy

 

 

Terms :

 

Selling :

L/C, Credit (30-60-90 Days)

 

 

Purchasing :

L/C, Cash and Credit (30-60-90 Days)

 

 

 

GENERAL INFORMATION

 

Suppliers :
  • Texon Group, Europe

 

 

Customers :

Wholesalers, OEM’s, Manufacturer and Retailers

  • Florind Shoes, Chennai
  • Khizaria Group, Chennai

 

 

No. of Employees :

150 [Office 50,  Factory-100(contract workers)]

 

 

Bankers :
  • UCO Bank, Main Branch, Pondicherry – 605 001
  • Citi Bank, Anasalai
  • HSBC, Radha Kishan Branch

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

K. S. Jagannathan and Company

Chartered Accountants

Address :

Flat No. G3, Sai Krupa Apartments, Door No. 5, Bharathi Nagar, IV Street, T. Nagar, Chennai – 600 017, Tamilnadu

Tel. No.:

91-44-28341112

Fax No.:

9144-28341112

E-Mail :

ksjchennai@vsnl.net

 

 

Associates/Subsidiaries :

Chennai Soletta Private Limited (Footwear Components)

 

 

CAPITAL STRUCTURE

 

As on 29.09.2006

 

Authorised Capital :

No. of Shares

Type

Value

Amount

3250000

Equity Shares

Rs. 10/- each

Rs. 32.500 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

2346100

Equity Shares

Rs. 10/- each

Rs. 23.461 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

Particulars

 

 

 

31.03.2008 (Approximately)

Sales Turnover (Estimated)

 

 

150.000

 

 

 

 

 

Expected Sales (2008-09): Rs.180.000 millions

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

23.461

21.364

21.364

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

15.320

13.486

11.775

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

38.781

34.850

33.139

LOAN FUNDS

 

 

 

1] Secured Loans

30.431

27.735

30.237

2] Unsecured Loans

7.512

23.814

17.278

TOTAL BORROWING

37.943

51.549

47.515

DEFERRED TAX LIABILITIES

1.134

1.270

1.377

 

 

 

 

TOTAL

77.858 

87.669

82.031

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

18.246

17.625

20.083

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.510

0.510

0.108

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
17.689
25.478

26.614

 

Sundry Debtors
30.251
37.236

32.115

 

Cash & Bank Balances
9.343
8.336

9.512

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
44.099
44.738

36.029

Total Current Assets
101.382

115.788

104.270

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
39.065
43.781

40.005

 

Provisions
3.872
3.293

2.438

Total Current Liabilities
42.937

47.074

42.443

Net Current Assets
58.445
68.714

61.827

 

 

 

 

MISCELLANEOUS EXPENSES

0.657

0.820

0.013

 

 

 

 

TOTAL

77.858

87.669

82.031

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

 

 

 

 

Sales Turnover

147.762

136.600

127.458

Other Income

0.968

2.644

1.318

Total Income

148.730

139.244

128.776

 

 

 

 

Profit/(Loss) Before Tax

3.840

3.208

2.634

Provision for Taxation

1.893

1.358

0.858

Profit/(Loss) After Tax

1.947

1.850

1.776

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

NA

NA

1.457

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

16.569

17.403

22.865

 

Purchases made for re-sale

75.019

80.685

73.355

 

Consumption of stores and spares parts

1.633

1.359

0.875

 

Increase/(Decrease) in Finished Goods

6.101

2.589

[7.035]

 

Salaries, Wages, Bonus, etc.

13.719

12.237

8.834

 

Managerial Remuneration

2.895

1.028

1.019

 

Payment to Auditors

0.140

0.129

0.127

 

Interest

6.309

6.332

6.224

 

Insurance Expenses

0.459

0.905

0.606

 

Power & Fuel

1.124

1.111

1.140

 

Depreciation & Amortization

3.327

3.577

4.216

 

Other Expenditure

17.595

8.681

13.916

Total Expenditure

144.890

136.036

126.142

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
1.30

1.33

1.38

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
2.59

2.35

2.06

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
3.21

2.40

2.12

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.09

0.09

0.08

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.08

1.68

2.71

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.36

2.46

2.46

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History :

 

Subject was incorporated on 5th November 1997 as a private limited company with the name of “Gaur Texon Footware Components Private Limited” and changed to public limited company  (I. E. the world ‘private’ deleted) from 3rd August 1998.

Again name change to “ GTFC Limited ” w.e.f 12th December, 2003.

 

It is also engaged in the business as traders of Thermo Plastic Sheets, Insole Sheets, Shank Board, Hot Melt Adhesives, Lining Materials, Threads and Shoe Chemicals.

 

It imports Thermo Plastic and Cellulose Sheets from Germany, Hot Melt Adhesives and Shank Board from Italy, Lining Material from Slovenija and Shank Board from Czwench Republic.

 

Trade references:

 

 

v      Forward Shoes

50, Raja Muthiah Road, Periamet, Chennai – 600 003, Tamilnadu

Contact Person – Mr. Yavardhala (Managing Director)

 

v      Florind Shoes

29, College Road, Chennai – 600 006, Tamilnadu

Contact Person – Mr. Mohammed Akmal (Joint Managing Director)

 

v      UB International Trading Limited

9/1, Arekere Village, Off Bannerhatta Road, Bangalore – 560 076, Karnataka

Contact Person – Mr. Indu Hirani (Director)

 

v      Good Leather Shoes

158, Thiruneer Malai Road, Chrompet, Chennai – 600 044, Tamilnadu

Contact Person – Mr. Vijayan (Managing Director)

 

v      Khizharia Leathers

A.      A.      H. House, 266, Periyar EVR High Road, Chennai – 600010, Tamilnadu

Contact Person – Mr. Akthar Hussain

 

v      Presidency Kid Leathers

476, Kilpauk Garden Road, Kilpauk, Chennai – 600 010, Tamilnadu

Contact Person – Mr. Mehaboob Khan

 

 

Bankers Charges Report as per Registry

 

Name of the company

GTFC LIMITED

Presented By

UCO BANK, PONDICHERY, MAIN BRANCH, PONDICHERY

1) Date and description of instrument creating the change

1)       1)       A9A- Hypothecation of movable plant and machinery

2)       2)       A1, A47, A3, A9 –Hypothecation of raw materials / finished goods / packing materials

3)       3)       A109 – Agreement for hypothecation of term loan

4)       4)       A9B – Hypothecation of bills purchase agreement

 

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

Overdraft Facility

Rs 7.500 Millions

Term Loan

Rs 3.600 Millions

Bills Purchase

Rs 1.200 Millions

Letter of Credit

Rs. 2.000 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

All stocks of toe puf / counter raw materials/ counter and moulded insoles, cutting dies,m machines and book debts.

 

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

Overdraft Facility

 

Term Loan

14.5%

Bills Purchase

Letter of Credit

 

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

UCO Bank

Pondichery Main Branch, Pondichery

 

6) Date  and brief description of instrument modifying the charge

A91 – Hypothecation of movable plant and machinery to secure a term loan for Rs 7.600 Millions dated 24.11.2004

 

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.

1] the existing limits of GTFC Limited and the Web Trading India are being consolidated consequent to merger of web trading India limited (WTIL) with GTFC Limited as under

Nature of facility

Old Limits

 

Limits of WTIL

Total

 

(Rs. In Millions)

OCC , PC, LC, BG

14.450

24.250

38.700

Term Loan

3.600

7.600

11.200

Total

18.050

31.850

49.900

 

2. All charges on movable relating to assets owned by Web Trading India Limited has been extended to consolidated borrowings of the company.

 

This form is for

Modification of charge

Charge identification number of the modified 

90284032

Corporate identity number of the company

U1920TN1997PLC039365

Name of the company

GTFC LIMITED

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

2/1, Subrayen Street, Nungambakkam, Chennai-600034, Nungambakkam, Tamilnadu, India

Type of charge

Book Debts

Movable Property

Immovable Property

Others

Particular of charge holder

UCO Bank, Pondicherry Main Branch, India

Nature of description of the instrument creating or modifying the charge

  1. Agreement relating to Term Loan- Rs. 1.500 Millions
  2. Hypothecation of goods to secure a Demand Cash Credit for Rs. 35.000 Millions
  3. Deed of hypothecation of Movable Plant and Machinery to secure a Term Loan- Rs. 1.500 Millions
  4. Agreements for extension of charge by way of hypothecation over current assets to secure non-fund based facilities-Rs. 10.300 Millions
  5. Agreement for PC Advance –Rs, 6.000 Millions
  6. Hypothecation of Book Debts to secure Demand Cash Cedit for Rs. 28.000 Millions

Date of instrument Creating the charge

03.02.2007

Amount secured by the charge

Rs. 43.800 Millions

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

Rate of Interest

  1. Term Loan – 14.25%
  2. Demand Cash Credit – 13.75%
  3. Packing Credit advances – 9.00%

Terms of Repayment

  1. Term Loan:- Repayable in 60 EMIs of Rs. 0.025 Million each commencing form next month immediately after disbursement and interest to be serviced then and there.

Margin

1.       Demand Cash Credit – 25%

2.       Term Loan – 25%

3.       Packing Credit- 25%

Extent and Operation of the charge

The Limits increased :-

  1. term Loan from Rs. 4.000 Millions to Rs. 5.500 Millions
  2. Cash Credit increased from Rs. 19.000 Millions to Rs. 22.000 Millions
  3. Packing Credit Advances increased from Rs. 5.000 Millions to Rs. 6.000 Millions
  4. Letter of Credit increased from Rs, 2.000 Millions to Rs. 7.000 Milllions
  5. Bank Guarantee renewed at old level of Rs. 3.300 Millions

Others

  1. Equitable mortgage over landed property – Deposit of titles deeds at 09.03.2007

Short particulars of the property charged

Stocks of raw materials, work in progress, stores and spares and finished goods located at No. 105, Gundu Salai, Oulgaret, Pondicherry

 

Plant and Machiney, equipments, implements, appliances belonging to the company lying at the above address and plant and machinery to be acquired with the present term loan and

 

Book debts and Equitable mortgage over landed property at R S No, 209, Sree Sapthagiri Gardens in Kayarambedu village, Chengalpattu Taluk

Particulars of the present modification 

  1. Enhancement of term loan from Rs. 4.000 Millions to Rs. 5.500 Millions with margin 25%
  2. Enhancement of CC limit from Rs. 19.000 Millions to Rs. 22.000 Millions with margin 25%
  3. Enhancement of Packing Credit Limit from Rs. 5.000 Millions to Rs. 6.000 Millions with margin 25%
  4. Enhancement of LC Limit from Rs.2.000 Millions to Rs. 7.000 Millions with margin 10%

 

WEBSITE DETAILS:

PARTNERS

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.49.46

UK Pound

1

Rs.73.17

Euro

1

Rs.62.96

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--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

 

49

 

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