MIRA INFORM REPORT

 

 

Report Date :

17.08.2011

 

IDENTIFICATION DETAILS

 

Name :

NIRMAL BOT LIMITED

 

 

Registered Office :

Hincon House, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400 083, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

19.09.2006

 

 

Com. Reg. No.:

11-164728

 

 

Capital Investment / Paid-up Capital :

Rs.315.000 millions

 

 

CIN No.:

[Company Identification No.]

U45201MH2006PLC164728

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMN14263E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The Company being engaged in design, operation development and maintenance of Road on Build, Operate and Transfer (BOT) on annuity basis.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1229000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealings with some cautions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

Hincon House, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400 083, Maharashtra, India

Tel. No.:

91-22-25715434/ 25751000

Fax No.:

91-22-25781850/ 25775950

E-Mail :

vithal.kulkarni@hccindia.com

 

DIRECTORS

 

As on 07.06.2011

 

Name :

Mr. Praveen Balkishan Sood

Designation :

Director

Address :

B/1404, Eternia Building, Hiranandani Gardens, Mumbai – 400 087, Maharashtra, India

Date of Birth/Age :

01.02.1958

Date of Appointment :

19.09.2006

DIN No.:

00018013

 

 

Name :

Mr. Shyamkant Kalidas Dharmadhikari

Designation :

Director

Address :

A-1, 701, Lok Gaurav, Vikhroli (West), Mumbai – 400 083, Maharashtra, India

Date of Birth/Age :

27.02.1951

Date of Appointment :

19.09.2006

DIN No.:

00613343

 

 

Name :

Mr. Arjun Vijay Dhawan

Designation :

Director

Address :

30 Iris, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

Date of Birth/Age :

19.07.1976

Date of Appointment :

27.04.2010

DIN No.:

01778379

 

 

Name :

Mr. Shekhar Baburao Patil

Designation :

Director

Address :

14, Premdham, 76, Shere Punjab CHS Limited, Andheri (East), Mumbai – 400 093, Maharashtra, India

Date of Birth/Age :

30.10.1950

Date of Appointment :

21.02.2007

Date of Ceasing :

15.06.2011

DIN No.:

00021275

 

 

Name :

N. Balasubramanian

Designation :

Director

Address :

Voila Alba, 201/202, Nahar Amrit Shakti, Chandivali, Andheri (East), Mumbai – 400 072, Maharashtra, India

Date of Birth/Age :

01.02.1959

Date of Appointment :

19.09.2006

Date of Ceasing :

21.02.2007

 

KEY EXECUTIVES

 

Name :

Mr. Dinesh Roopchand Jain

Designation :

Manager

Address :

1303, Tower-1, Raheja Tipco Heights, Rani Sati Marg, Malad (East), Mumbai – 400 097, Maharashtra, India

Date of Birth/Age :

31.01.1971

Date of Appointment :

20.04.2009

PAN No.:

AAAPJ4850F

 

 

Name :

Ms. Shilpa A. Bhatia

Designation :

Company Secretary

Address :

304, Kirti Apartments, Ram Baug Lane No.5, Kalyan (West) – 421 301, Maharashtra, India

Date of Birth/Age :

29.08.1975

Date of Appointment :

20.04.2009

PAN No.:

AGVPP7853P

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 07.06.2011

 

Names of Shareholders

 

 

No. of Shares

Ajit Gulabchand

 

10

Krishna G. Tendulkar

 

10

Vithal P. Kulkarni

 

10

Praveen B. Sood

 

10

Shekhar B. Patil

 

10

S.K. Dharmadhikari

 

10

HCC Concessions Limited, India

 

31499940

Total

 

31500000

 

As on 07.06.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The Company being engaged in design, operation development and maintenance of Road on Build, Operate and Transfer (BOT) on annuity basis.

 

 

Services :

Engineering and Construction

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

v      Industrial Development Bank of India

v      State Bank of India

v      Jammu and Kashmir Bank

v      State Bank of Patiala

 

 

Facilities :

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Term Loans - Rupee Loan

2520.000

1779.925

Total

2520.000

1779.925

 

Notes:

 

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Name of the Banks

 

 

Industrial Development Bank of India

1250.000

882.900

India Infrastructure Finance Company Limited

600.000

423.800

Jammu and Kashmir Bank

500.000

353.200

State Bank of Patiala

169.900

120.000

Total

2519.900

1779.900

 

The loan is secured by way of pari-passu first charge on all assets both present and future, excluding the project assets as defined in the Concession Agreement.

 

Unsecured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

From Hindustan Construction Company Limited:

 

 

- As Subordinate Debt

315.000

315.000

- Other

20.000

0.000

Total

335.000

315.000

 

 

 

Banking Relations :

--

 

 

Financial Institutions :

v      Axis Trustee Services Limited, 02 Floor, Axis House, Bombay Dying Mill Compound, Pandurang Bhudhkar Marg, Mumbai – 400 025, Maharashtra, India

v      Axis Trustee Services Limited, Maker Towers 'F', 13th Floor, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India

v       IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai – 400 001, Maharashtra, India

v       India Infrastructure Finance Company Limited

 

 

Auditors :

 

Name :

Gianender and Associates

Chartered Accountants

Address :

Site No.21, Plot No.6, Geeta Mandir Marg, New Rajender Nagar, New Delhi – 110 060, India

PAN No.:

AACFG9836E

 

 

Holding Company :

Hindustan Construction Company Limited (As on 31.03.2010)

CIN No.: L45200MH1926PLC001228

 

 

Fellow Subsidiaries :

v      Western Securities Limited

v      Hincon Techno Consult Limited

v      HCC Singapore Enterprises Pte Limited

v      HCC Mauritius Enterprises Limited

v      HCC Real Estate Limited

v      HCC Aviation Limited

v      Badarpur Faridabad Tollway Limited

v      HCC Infrastructure Limited

v      Pune Paud Toll Road Company Limited

v      HCC Construction Limited

v      Panchkutir Developers Limited

v      Highbar Technologies Limited

v      Baharampore-Farakka Highways Limited

v      Farakka-Raiganj Highways Limited

v      Raiganj-Dalkhola Highways Limited

 

 

Subsidiary of Fellow Subsidiary :

v      Lavasa Corporation Limited

v      HRL Township Developers Limited

v      HRL (Thane) Real Estate Limited

v      Maan Township Developers Limited

v      Nashik Township Developers Limited

v      Charosa Wineries Limited

v      Lavasa Hotel Limited

v      Ecomotel Hotel Limited

v      Dasve Business Hotel Limited

v      Dasve Conventional Center Limited

v      Lakeshore Watersports Company Limited

v      Lakeview Clubs Limited

v      Dasve Hospitality Institutes Limited

v      Spotless Laundry Services Limited

v      Lavasa Bamboocraft Limited

v      Green Hill Residences Limited

v      Knowledge Vista Limited  (Formerly GDXT Oxford International Limited)

v      Powai Real Estate Developers Limited

v      Full Spectrum Adventure Limited

v      HCC Realty Limited

v      Warasgaon Lake View Hotels Limited (formerly Lavasa Star Hotels Limited)

v      Apollo Lavasa Health Corporation Limited

v      Reasonable Housing Limited

v      My City Technology Limited

v      Minfur Interior Technologies Limited

v      Verzon Hospitality Limited

v      Rhapsody Hospitality Limited

v      Sirrah Palace Hotels Limited

v      Andromeda Hotels Limited

v      Valley View Entertainment Limited

v      Whistling Thrush Facilities Services Limited

v      Warasgaon Power Supply Limited

v      Sahyadri City Management Limited

v      Warasgaon Tourism Limited

v      Dasve Retails Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

35000000

Equity Shares

Rs.10/- each

Rs.350.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

31500000

Equity Shares

(100% Equity Shares of Rs 10/- each are held by the Holding Company – Hindustan Construction Company Limited)

Rs.10/- each

Rs.315.000 millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

315.000

315.000

315.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(7.831)

0.000

0.000

NETWORTH

307.169

315.000

315.000

LOAN FUNDS

 

 

 

1] Secured Loans

2520.000

1779.925

226.763

2] Unsecured Loans

335.000

315.000

315.000

TOTAL BORROWING

2855.000

2094.925

541.763

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

3162.169

2409.925

856.763

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3077.571

0.836

667.703

Capital work-in-progress

0.000

2353.669

0.000

 

 

 

 

INVESTMENT

3.483

8.253

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
3.189

36.663

52.159

 

Sundry Debtors
217.301

0.000

0.000

 

Cash & Bank Balances
0.396

3.107

3.149

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
137.856

107.535

180.450

Total Current Assets
358.742

147.305

235.758

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
5.068

13.538

17.277

 

Other Current Liabilities
272.559

86.600

29.421

 

Provisions
0.000

0.000

0.000

Total Current Liabilities
277.627

100.138

46.698

Net Current Assets
81.115

47.167

189.060

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3162.169

2409.925

856.763

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Annuity

200.284

0.000

0.000

 

 

Other Income (Dividend)

0.284

0.000

0.000

 

 

TOTAL                                     (A)

200.568

0.000

0.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Operation and Maintenance Expenses

18.834

0.000

0.000

 

 

TOTAL                                     (B)

18.834

0.000

0.000

 

 

 

 

 

Less

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

181.734

0.000

0.000

 

 

 

 

 

Less

INTEREST & FINANCIAL EXPENSES                 (D)

115.948

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

65.786

0.000

0.000

 

 

 

 

 

Less/ Add

DEPRECIATION & AMORTISATION                   (F)

73.617

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

(7.831)

0.000

0.000

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

(7.831)

0.000

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

--

--

--

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(7.831)

--

--

 

 

 

 

 

 

Earnings Per Share (Rs.)

(0.25)

--

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(3.90)

0.00

0.00

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(3.91)

0.00

0.00

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(0.23)

0.00

0.00

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.03)

0.00

0.00

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
10.20

6.97

1.87

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.29

1.47

5.05

 

 

LOCAL AGENCY FURTHER INFORMATION

 

BACKGROUND:

 

Subject was incorporated under the Companies Act, 1956 on 19th September, 2006 as a Special Purpose Vehicle for Design, Construction, Development, Finance, Operation and maintenance of Km 278/000 to Km 308/000 on the Kadtal to Armur section of NH-7 (A.P.) on BOT Annuity basis awarded by the National Highway Authority of India Limited (NHAI).

 

OPERATIONS:

 

During the year, the Company has successfully completed the construction of BOT Annuity Road project from Km. 278.000 (Kadthal) to Km. 308.000 (Armur) of NH-7 in the State of Andhra Pradesh under North-South Corridor (NHDP Phase-II). The project has been capitalized and the same has been completed well within appraised project cost of Rs.3150.000 millions. The project is now fully operational with in house O and M team of personnel in place at project site location.

 

On behalf of members of the company they express their sincere thanks to direction and guidance provided by various officials of NHAI head office, regional office, Project Director at site and Aarvee Associates, NHAI Independent Engineer, Andhra Pradesh State Government and it’s various departments, EPC Contractor and its sub-contractors, senior management team of Hindustan Construction Company Limited, employees of HCC Infrastructure Limited, the term lenders consortium lead by IDBI Bank bankers and various advisors who directly indirectly worked for implementation of the project.

 

The company has executed yearly renewable routine operations and maintenance contract with Venella Constructions (O and M Contractor), Hyderabad for various sub activities during operations period such as pot hole filling, sweeping, watering of plants, highway patrolling, maintenance of electrical and lighting facilities etc. The activities of the O and M Contractor are supervised by in house O and M Team at site. The 1st annuity payment is due from NHAI as on 29th April 2010 and necessary payment processing is progressing at NHAI end.

 

As the project has been completed, the company has been exploring opportunities for refinancing of long term loan either through issue of non convertible debentures or regular term loan at a lower cost and to avail additional funds to meet working capital requirements. The company is hopeful of achieving this objective by end of 1st quarter of FY2010-11.

 

The company has prepared 1st operating results post capitalization.

 

In view of 1st operating period for part of the year, the company has reported a net loss of Rs.7.800 millions but a healthy cash profit of Rs.65.800 millions. The directors are unable to declare any dividends in view of net loss for the period ended 31st March 2010.

 

FORM 8:

 

This form is for

Creation of charge

Corporate identity number of the company

U45201MH2006PLC164728

Name of the company

NIRMAL BOT LIMITED

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

Hincon House, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400 083, Maharashtra, India

Type of charge

v      Uncalled share capital

v      Calls made but not paid

v      Immovable property

v      Any interest in immovable property

v      Goodwill

v      Book debts

v      Patent, license under a patent

v      Movable property (not being pledge)

v      Trademark

v      Floating charge

v      copyright or license under a copyright

v      Others (Project documents, Approvals and Bank Accounts)

Particular of charge holder

CIN No.: U65991MH2001GOI131154

IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai – 400 001, Maharashtra, India

E-Mail: itsl@idbitrustee.co.in

Nature of description of the instrument creating or modifying the charge

Indenture of Mortgage dated 26th October 2007 executed by company in favour of IDBI Trusteeship Services Limited, acting as the Security Trustee on behalf of and for the benefit of the lenders for securing Rupee Term Loan of Rs.2520.000 millions.

Date of instrument Creating the charge

26.10.2007

Amount secured by the charge

Rs.2520.000 millions

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

Rate of Interest:

11% p.a. (fixed) payable monthly for the period upto expiry of a period of one (1) year from the date of Initial Disbursement and on each Interest reset date, the interest shall be reset at the rate calculated by deducting the Spread from Prime Lending Rate prevailing on the relevant reset date. Spread shall mean the difference between the Prime Lending rate on the Initial Disbursement date and 11%.

 

Terms of Repayment:

Loans shall be repaid in twenty eight (28) semi annual installments commencing from May 31, 2010, provided that in any event the total door-to-door tenor (the period commencing from the date of first disbursement upto the date of repayment of the last installment of the Loans ) shall not exceed 16 (sixteen) years.

 

Margin:

The ratio of the Loans over the actual Equity contribution shall not exceed 4:1

 

Extent and Operation of the charge:

The charge operates as security, inter alia, for the due repayment by the Company the Loans together with payment of all interest, additional interest in case of non creation of security, liquidated damages, premium on prepayment, reimbursement of all costs, charges and expenses and all other obligations payable by the Company in respect of the Loans in accordance with the terms and conditions of the Common Loan Agreement date October 26, 2007 and/or other financing documents.

 

Others:

The security created under the said Indenture of Mortgage is to be a continuing security.

Short particulars of the property charged

1. Vacant land bearing Sub-Division layout Plot No.4, Gut No.321A admg 252.5 Sq. Mtrs. Southern side portion  505.00 Sq. Mtrs., Village Devale, Vadgaon, Pune, Regn District Pune, Sub-District Lonavala;

2. Moveable properties of the Company including its plant and machinery excluding Project Assets unless consented to by NHAI;

3. All the Receivables, Accounts and intangible assets of the Company;

4. Project Documents and Approvals;

5. Company's interest in insurance contract

 

FIXED ASSETS:

Tangible Fixed Assets

v      Freehold Land (At Lonavala)

v      Office Equipment

v      Computer Machinery

v      Furniture and Fixtures

Intangible Assets

v      Annuity Rights

v      Toll Plaza Equipments

v      Capital Work-in-Progress

 

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.45.25

UK Pound

1

Rs.73.88

Euro

1

Rs.65.06 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--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

 

27

 

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

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

-

NB

                                       New Business

-

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.