MIRA INFORM REPORT

 

 

Report Date :

05.12.2011

 

IDENTIFICATION DETAILS

 

Name :

REXAM HTW BEVERAGE CAN (INDIA) PRIVATE LIMITED

 

 

Registered Office :

488, Bartan Market, Sadar Bazar, Delhi – 110006, Delhi

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

25.06.2006

 

 

Com. Reg. No.:

150218

 

 

CIN No.:

[Company Identification No.]

U28129DL2006PTC150218

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Beverage Cans.

 

 

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 1540064

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint Venture between Rexam PLC of UK and Hindustan Tin Works Limited, India. It is an established company having moderate track. There appears huge accumulated losses recorded by the company. Trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

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

 

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

 

INFORMATION PARTED BY

 

Name :

Mr. Pramod Patil

Designation :

Accounts

Date :

04.01.2011

 

LOCATIONS

 

Registered Office :

488, Bartan Market, Sadar Bazar, Delhi – 110006, Delhi, India

Tel. No.:

91-11-23679016/23673645

Fax No.:

91-11-23550405

E-Mail :

info@rexamhtw.com, cs@hindustantin.com

Website :

www.rexamhtw.com

Location :

Owned

 

 

Factory 1 :

C-7 Taloja Industrial Estate, Raigad District, Panvel Taluk, Raigad – 410208, Maharashtra, India

Tel. No.:

91-22-27402864/27412904

Fax No.:

91-22-27412904

Area :

25000Mtrs.

Location :

Owned

 

 

Sales Office :

71, Empire Building, 2nd Floor, 134, D Naroji Road, Opposite CST, Mumbai, Maharashtra, India 

Tel. No.:

91-22-66317971

Fax No.:

91-22-66317971

 

 

DIRECTORS

 

AS ON 24.09.2010

 

Name :

Mr. Nand Parkash Sahni

Designation :

Director

Address :

K.No. 239, Westend Marg, Mehrauli, Badarpur Road, (Ps) Saidulazab, New Delhi – 110030.

Date of Birth/Age :

15.04.1941

Date of Appointment :

09.05.2007

 

 

Name :

Mr. Sanjay Bhatia

Designation :

Director

Address :

A-155, New Friends Colony, New Delhi – 110065.

Date of Birth/Age :

10.03.1952

Date of Appointment :

14.10.2006

 

 

Name :

Mr. Vijay Kumar Bhatia

Designation :

Director

Address :

22, Seeta Mahal, 3rd Floor,  Kambal Hill, Bomanji Petit Road, Mumbai – 400036.

Date of Birth/Age :

07.05.1942

Date of Appointment :

14.10.2006

 

 

Name :

Mr. Ramesh Kumar Jain

Designation :

Director

Address :

459/B/2, Shalimar Park Dalhai, Mohalla Bhola Nath Nagar, Delhi – 110032.

Date of Birth/Age :

07.12.1957

Date of Appointment :

09.05.2007

 

 

Name :

Mr. Behrilal Khurana

Designation :

Director

Address :

H. No. E-150, Forest Lane, Sainik Farm, New Delhi – 110062.

Date of Birth/Age :

01.11.1925

Date of Appointment :

09.05.2007

 

 

Name :

Mr. Richard J Peachey

Designation :

Director

Address :

36, Lower Weald, Calverton, Milton, Keynes Mk 196eq. UK

Date of Birth/Age :

14.03.1965

Date of Appointment :

14.10.2006

 

 

Name :

Mr. Tomas Nils Arne S Jolin

Designation :

Director

Address :

Flat 4 Top Floor, 6, Redington Road, London, Nw37rg. United Kingdom

Date of Birth/Age :

04.02.1949

Date of Appointment :

29.09.2009

 

 

Name :

Mr. Timothy Roy Wright

Designation :

Director

Address :

2 Brockwell, Newport Pagnell MK160LA

Date of Birth/Age :

11.10.1956

Date of Appointment :

01.10.2008

 

 

Name :

Mr. Francis Peter Blundell

Designation :

Director

Address :

38, Wallace Drive Eaton Bray, Dunstable, Lu62df, United Kingdom

Date of Birth/Age :

09.02.1949

Date of Appointment :

29.09.2009

 

 

Name :

Mr. John Richard Gorton

Designation :

Director

Address :

The Old House, Church Walk, Lghtn Bzzrd, Lu79ql, United Kingdom

Date of Birth/Age :

14.10.1955

Date of Appointment :

29.09.2009

 

 

Name :

Mr. Gary Frederick Clark

Designation :

Director

Address :

13 Wrens Park, Middleton, Milton, Keynes – Mk109bh.

Date of Birth/Age :

23.03.1957

Date of Appointment :

29.01.2010

 

 

Name :

Mr. Simon Michael Gwyn Jeenings

Designation :

Director

Address :

Apt.# 89,8/F, Tower 16, Hongkong, Parkview, 88 Tai Tam Reservoir Road, Hong Kong – 2995 China

Date of Birth/Age :

12.01.1956

Date of Appointment :

12.03.2007

Date of Ceasing :

29.01.2010

 

 

Name :

Mr. Lau Mei Nagor

Designation :

Director

Address :

36G, Tower 2, Nan Fung Palza, 8 Pui Shing Road, Tseung Kwan O Hongkong – 049513, China

Date of Birth/Age :

11.06.1967

Date of Appointment :

08.04.2008

Date of Ceasing :

29.09.2009

 

 

Name :

Mr. Eric Laurent Marie Soubeiran

Designation :

Director

Address :

10 Rue Nollet, Paris – 75017, France

Date of Birth/Age :

06.08.1978

Date of Appointment :

08.04.2008

Date of Ceasing :

29.09.2009

 

 

Name :

Mr. Lee Yin Chai Candy

Designation :

Director

Address :

Flat B, 1/F, 37 Gough St, Central – 2995, China

Date of Birth/Age :

10.01.1961

Date of Appointment :

29.05.2007

Date of Ceasing :

29.09.2009

 

 

Name :

Ms. Monika Bhatnagar

Designation :

Director

Address :

A-12-A, DDA Flats, Munirka, Delhi

Date of Birth/Age :

21.01.1970

Date of Appointment :

28.11.2006

 

 

KEY EXECUTIVES

 

Name :

Mr. Pramod Patil

Designation :

Accounts

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 24.09.2010

 

Names of Shareholders

 

No. of Shares

Paras Bhatia S/o Mr. Ashok Bhatia

 

100

Atit Bhatia S/o Mr. Sanjay Bhatia

 

100

Hindustan Tin Works Limited, Delhi

 

3285250

Rexam Beverage Can  (India Holding) Limited, London

 

18617547

Rexam European Holdings Limited, London

 

01

Berkeley Nominees Limited, London

 

01

Rexam Beverage Can Europe Limited, Bedfordshire

 

01

Total

 

21903000

 

AS ON 24.09.2010

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

85.00

Bodies corporate

15.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Beverage Cans.

 

 

Exports :

 

Products :

Beverage Cans

Countries :

South Africa

 

 

Imports :

 

Products :

Raw Materials

Countries :
  • Spain
  • China
  • US
  • Germany

 

 

Terms :

 

Selling :

L/C, Cash, Credit 

 

 

Purchasing :

L/C, Cash, Credit 

 

PRODUCTION STATUS AS ON 31.03.2010

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Cans

Numbers

 

222000000

131659772

 

  • Licensed Capacity is not applicable as industrial licensing has been abolished in respect of these products vide notification No. SO – 477 (E) dated 25th July, 1991 as amended vide Press Release Note No.4 of the 1994 series dated 25th October, 1994 issued by the Department of Industrial Development, Ministry of Industry, Government of India.
  • @ Installed Capacity (at Taloja Plant on triple shift basis), being a technical matter, is certified by the management and relied upon by the auditors.)

 

GENERAL INFORMATION

 

Customers :

Corporates

 

 

No. of Employees :

150 (In office 30 + In factory 120)

 

 

Bankers :
  • HDFC Bank, Branch Fort, Mumbai
  • The Hong kong and Shanghai Banking Corporation Limited, Corporate Office, 52/60, Mahatma Gandhi Road, Fort, Mumbai – 400001, Maharashtra, India

 

 

Facilities :

 

Secured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Term Loans from a Bank

868.025

910.025

Short Term Loans from a Bank

--

50.000

Working Capital Loan from a Bank

--

194.900

Vehicle Loan from a Bank

0.089

0.337

External Commercial Borrowing from Rexam Beverage Can (India Holdings) Limited

63.006

--

Total

931.120

1155.262

Note:

  1. Term Loan from a bank are secured by first charge on all the project assets including land, Plant and Machinery as well as current assets of the company.
  2. Vehicle Loan from a Bank is secured by hypothecation of Vehicles
  3. External Commercial Borrowing is secured by second charge on all of the movable assets including plant and machinery, machinery spares, tools and accessories and other movables, both current as well as future, of the company
  4. Amount repayable within one year Rs.124.444 Millions (Previous Year Rs.0.248 Millions)

 

 

 

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Loans From Hindustan Tin Works Limited

--

57.000

Total

--

57.000

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountant

Address :

252, Veer Savarkar Marg, Shivaji Park, Mumbai – 400028, Maharashtra, India

 

 

Holding Company :

Rexam Beverage Can (India Holdings) Limited

 

 

Fellow Subsidiaries :
  • Rexam Beverage Can Company, USA
  • Rexam Beverage Can Europe Limited, UK
  • Rexam Beverage Can SAS, France
  • Rexam Beverage Can UK Limited, UK
  • Rexam Paketleme Saneyi Ve Ticaret AS, Turkey
  • Hanll Can Company Limited, South Korea
  • Rexam Beverage Can Italia SRL, Italy
  • Rexam Beverage Can Berlin GmbH, Germany

 

 

Enterprise Where significant Influence Exists:

Hindustan Tin Works Limited (Up To 29th January, 2010 )

 

 

Associates:

Hindustan Tin Works Limited (Up To 28th January, 2010 )

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

22000000

Equity Shares

Rs.10/- each

Rs.220.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

21903000

Equity Shares

Rs.10/- each

Rs.219.030 Millions

 

 

 

 

 

(Of the above, 18617547 (Previous Year 3419547) share are held by Rexam Beverage Can (India Holding) Limited, the holding company and 3 shares are held by other subsidiaries of Rexam Plc, UK, the ultimate holding company)

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

219.030

67.050

67.050

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

991.289

393.248

393.248

4] (Accumulated Losses)

(825.303)

(543.444)

(199.171)

NETWORTH

385.016

(83.146)

261.127

LOAN FUNDS

 

 

 

1] Secured Loans

931.120

1155.262

632.334

2] Unsecured Loans

0.000

57.000

170.000

TOTAL BORROWING

931.120

1212.262

802.334

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1316.136

1129.116

1063.461

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

977.113

1083.518

839.641

Capital work-in-progress (Including Expenditure During Construction Period)

4.381

0.430

194.388

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
164.571

217.685

88.137

 

Sundry Debtors
92.356

88.978

22.176

 

Cash & Bank Balances
82.359

15.376

5.958

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
180.574

165.678

182.757

Total Current Assets
519.860

487.717

299.028

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
143.097

397.753

57.797

 

Other Current Liabilities
22.235

41.341

10.560

 

Provisions
19.886

3.455

1.239

Total Current Liabilities
185.218

442.549

69.596

Net Current Assets
334.642

45.168

229.432

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1316.136

1129.116

1263.461

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

TOTAL INCOME                       (A)

715.547

353.406

87.716

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

997.406

696.713

892.516

 

 

 

 

 

Less

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

(281.190)

(1432.500)

(804.800)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1323.520

1308.890

696.330

 

 

 

 

 

 

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

(1604.710)

(2741.390)

(1501.130)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1213.880

691.680

399.100

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(2818.590)

(3433.070)

(1900.230)

 

 

 

 

 

Less

TAX                                                                  (I)

0.000

9.660

7.060

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

(2818.590)

(3442.730)

(1907.290)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

64.358

9.115

37.973

 

 

Freight and Insurance

14.325

3.593

0.000

 

 

Commission Earnings

13.096

3.626

59.974

 

 

Exchange Gain (Net)

32.305

0.000

112.723

 

TOTAL EARNINGS

124.084

16.334

210.670

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

260.670

252.316

0.000

 

 

Components & Spares Parts

20.407

13.541

0.000

 

 

Goods for Resale

141.444

144.726

1.558

 

 

Capital Goods

7.678

41.587

1.635

 

TOTAL IMPORTS

430.199

452.17

3.193

 

 

 

 

 

 

Earnings Per Share (Rs.)

(30.35)

(51.35)

--

 

Expected Sales (2010-2011) : Rs.750.000 Millions

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(393.90)

(974.15)

(2174.39)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(188.28)

(974.16)

(166.88)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(7.32)

(41.29)

(7.28)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.90

(19.20)

3.34

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.81

1.10

4.30

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS:

 

PARTICULARS

RS. IN MILLIONS

31.03.2010

RS. IN MILLIONS

31.03.2009

RS. IN MILLIONS

31.03.2008

Sundry Creditors

 

 

 

Micro and Small Enterprises 

4.050

5.135

0.000

Others

139.047

392.618

57.797

 

NOTE:

 

The registered office address of the company has been shifted from UGF, Antriksh Bhawan, 22, K.G. Marg, New Delhi – 110001, Delhi, India to present w.e.f. 07.07.2010

 

OPERATIONS

 

During the year the turnover of the Company grew by approx. 92%, registering sales of Rs.644.600 Millions over last year’s sales of Rs.336.300 Millions. The Company has also made exports of Rs.64.400 Millions during the year against Rs.9.100 Millions during last year registering an increase of approx. 608%. The spurt in can sales has been triggered by a continuous growth in the market spurred by growing consumption pattern. Apart from increased demand for 330 ml cans, there has been a significant and fast growing market developing for 500 ml cans. There has been excellent take off in the can sales during the year by their various esteemed customers. Their customer base has also been expanding and we had many exciting enquiries during the year.

The year also witnessed many fresh initiatives from operational and manufacturing aspects which helped the operations and will also, in future, keep improving efficiencies and bringing the costs down. The 5S initiative started by company has not only augmented the efficiencies and smoothened the operations but has also made the plant a better workplace instilling confidence and discipline among the workforce. Similarly another step taken in this direction was lean manufacturing initiative program which has started showing noticeable cost reductions and improved efficiencies. The company has also introduced single minute exchange of die (SMED) which has been a great facilitator in frequent changeover sessions which take place in the plant to cater to the dynamic demand patterns of the customers. The spoilage percentage has significantly reduced due to optimum machinery and conveying set ups and proper training to and awareness among operators and efforts are being made to further reduce the same. There have been energy saving initiatives (relating to LPG, electricity, compressor and vacuums etc) operational in the plant and these have also been helping us conserve the various energy sources.

Safety has been another important area which has been addressed in a much focused manner.

 

The company has set up a committee (EHS Committee) related to environment, health and safety which has helped improve safety and health related issues in the plant. Unfortunately the Company has received complaints from certain customers regarding pinhole leakages in filled cans; the matter is dealt in details at item no. 5 of Schedule 18 of the notes to Financial Statements 2009-10.

 

FORM 8:

 

Corporate identity number of the company

U28129DL2006PTC150218

Name of the company

REXAM HTW BEVERAGE CAN (INDIA) PRIVATE LIMITED

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

UGF, Antriksh Bhawan, 22, K.G. Marg, New Delhi – 110001, Delhi, India

This form is for

Creation of charge

Type of charge

Immovable Property

Particular of charge holder

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

Nature of instrument creating charge

Memorandum of Deposit of Title deeds in respect of Land & Building

Date of instrument Creating the charge

21/10/2009

Amount secured by the charge

Rs.1155.000 Millions

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

Rate of Interest

Facility Letter Dated 20th February'2009

 

Terms of Repayment

Facility Letter Dated 20th February'2009

 

Margin

Facility Letter Dated 20th February'2009

 

Extent and Operation of the charge

Exclusive Charge on Land And Building, Boath Present and Future For INR 1155 MN

Short particulars of the property charged

Land and Building At C-7, Midc Taloja, Taluka Panvel, Dist. Raigad, Maharashtra - 410208 Both Present and Future By Way Of Memorandum Of Deposit Of Title Deeds

 

 

TRADE REFERENCES:

 

United Breweries  

 

FIXED ASSETS:

 

  • Computer Software
  • Leasehold Land
  • Buildings
  • Plant and Machinery
  • Office Equipment
  • Furniture and Fittings
  • Vehicles

 

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.44.84

UK Pound

1

Rs.69.32

Euro

1

Rs.59.79

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--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

YES

--AFFILIATION

YES/NO

NO

--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.