MIRA INFORM REPORT

 

 

Report Date :

06.07.2011

 

IDENTIFICATION DETAILS

 

Name :

RANE NSK STEERING SYSTEMS LIMITED (w.e.f. 27.06.1997)

 

 

Formerly Known As :

RANE STEERING COLUMNS LIMITED

 

 

Registered Office :

‘Maithri’, 132, Cathedral Road, Madras – 600086, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

22.03.1995

 

 

Com. Reg. No.:

18-030621

 

 

Capital Investment / Paid-up Capital :

Rs.179.000 Millions

 

 

CIN No.:

[Company Identification No.]

U29141TN1995PLC030621

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHER02634C

 

 

PAN No.:

[Permanent Account No.]

AAACR4738F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Energy Absorbing Steering Columns.

 

 

No. of Employees :

300 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (44)

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

Maximum Credit Limit :

USD 1420000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between NSK, Japan and Rane Holdings Limited.

 

It is an established company having satisfactory track. The company has been successful in wiping off the accumulated losses of previous year. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

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

 

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 :

‘Maithri’, 132, Cathdral Road, Madras, Chennai – 600086, Tamilnadu, India

Tel. No.:

91-44-28112472

Fax No.:

91-44-28112449

E-Mail :

c.siva@rane.co.in

Website :

http://www.rane.co.in

 

 

Corporate Office :

Plot No. 28A, Sector – 6, HSIDC Growth Center, Bawal – 123501, Haryana, India

 

 

DIRECTORS

 

As on 23.07.2010

 

Name :

Mr. Lakshman Lakshminarayan

Designation :

Nominee Director

Address :

06, Crescent Street, Off Arch Bishop, Mathias Avenue, Chennai – 600028, Tamilnadu

Date of Birth/Age :

17.07.1946

Date of Appointment :

22.03.1995

DIN or Income-tax PAN :

00012554

 

 

Name :

Mr. Ganesh Lakshminarayan

Designation :

Nominee Director

Address :

Door No.5A, Valloammaichi Road, Kotturpuram, Chennai – 600085, Tamilnadu

Date of Birth/Age :

18.03.1954

Date of Appointment :

22.03.1995

DIN or Income-tax PAN :

00012583

 

 

Name :

Mr. Harish Lakshman

Designation :

Nominnee Director

Address :

G-B, #11, 2nd Street, Prithvi Avenue, Chennai – 600018, Tamilnadu

Date of Birth/Age :

12.02.1974

Date of Appointment :

01.01.2002

DIN or Income-tax PAN :

00012602

 

 

Name :

Mr. Norbert Werner Schneider

Designation :

Director

Address :

Fribolinstr, 38, Bietigheim Bissingen, Germany

Date of Birth/Age :

03.03.1954

Date of Appointment :

20.03.2009

DIN or Income-tax PAN :

02586745

 

 

Name :

Mr. Narayanan Ramachandran

Designation :

Director

Address :

1C No 10, Dharanija, 1st , Seeword Road, Thiruvanmiyur, Chennai – 600041, Tamilnadu

Date of Birth/Age :

30.11.1948

Date of Appointment :

22.05.2009

DIN or Income-tax PAN :

02662592

 

 

Name :

Mr. Yasuhiro Kamio

Designation :

Nominee Director

Address :

Naritahigashi, 2-21-4, Suginami-KU, Tokyo - 1660015

Date of Birth/Age :

22.07.1959

Date of Appointment :

21.10.2009

DIN or Income-tax PAN :

01059349

 

 

Name :

Mr. Tamotsu Matsumoto

Designation :

Nominee Director

Address :

New No.7 Old No. 5, Boat Club Road, R A Puram, Chennai – 600028, Tamilnadu

Date of Birth/Age :

15.10.1958

Date of Appointment :

23.07.2010

DIN or Income-tax PAN :

03081393

 

 

Name :

Mr. Tsutomu Komori

Designation :

Nominee Director

Address :

878-6, Hiramatsucho, Ustunomiya - 3210931

Date of Birth/Age :

17.12.1951

Date of Appointment :

23.07.2010

DIN or Income-tax PAN :

02799703

 

 

KEY EXECUTIVES

 

Name :

Ms. Raheshwari Nachiappan

Designation :

Secretary

Address :

13/7, Nellaiappar Street, Bharathipuram Chromepet, Chennai – 600044, Tamilnadu

Date of Birth/Age :

27.01.1987

Date of Appointment :

21.10.2009

DIN or Income-tax PAN

AIDPN0185A

 

 

Name :

Mr. John Verghese

Designation :

Manager

Address :

Flat - A2, Isha Gitka Shrinivasan Nagar, Velachery, Chennai – 600042, Tamilnadu

Date of Birth/Age :

13.06.1963

Qualification :

Bachelor of Commerce and Associate Chartered Accountant

Experience :

22 Years

Date of Appointment :

01.06.2009

DIN or Income-tax PAN

ABQPV1758D

 

 

Name :

Mr. John Verghese

Designation :

President

Address :

Flat - A2, Isha Gitka Shrinivasan Nagar, Velachery, Chennai – 600042, Tamilnadu

Date of Birth/Age :

47 Years

Qualification :

Bachelor of Commerce and Associate Chartered Accountant

Experience :

22 Years

Date of Appointment :

01.04.2009

 

 

Name :

Mr. H. Yokoyama

Designation :

Sr. Vice President

Date of Birth/Age :

46 Years

Qualification :

Doshisha University, Bachelor of Mechanical Engineer

Experience :

23 Years

Date of Appointment :

01.07.2008

 

 

Name :

Mr. T. Shinhara

Designation :

Plant Head

Date of Birth/Age :

40 Years

Qualification :

Kyushu University, Bachelor of Mechanical Engineer

Experience :

18 Years

Date of Appointment :

18.11.2007

 

 

Name :

Mr. H Ishise

Designation :

Manager - QA

Date of Birth/Age :

32 Years

Qualification :

Chuo University, Bachelor of Mechanical Engineer

Experience :

10 Years

Date of Appointment :

17.12.2007

 

 

Name :

Mr. H. Naito

Designation :

Manager –MED

Date of Birth/Age :

34 Years

Qualification :

Aoyama Gakuin University, Bachelor of Science and Engineering

Experience :

9 Years

Date of Appointment :

10.01.2008

 

 

Name :

Mr. N. Nakamoto

Designation :

Technical Advisor

Date of Birth/Age :

53 Years

Qualification :

Nihon University, Bachelor of Mechanical Engineer

Experience :

29 Years

Date of Appointment :

15.09.2008

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 23.07.2010

 

Names of Shareholders

 

No. of Shares

NSK Limited, Tokyo, Japan

 

8950000

L. Lakshman

 

1

l. Ganesh

 

1

Harish Lakshman

 

1

S. K. Chandrasekaran

 

1

N. Krishnamoorthy

 

1

Rane Holdings Limited, Tamilnadu, India

 

8949995

 

 

 

 

Total

17900000

 

As on 23.07.2010

 

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

50.00

Bodies corporate

50.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Energy Absorbing Steering Columns.

 

 

Products :
  • Electric Power Steering
  • Solid Steering Columns
  • Energy Absorbing and Collapsible columns
  • Tilt and Telescopic Steering Columns
  • Intermediate Shafts
  • Universal Joint Assemblies

 

Item code (ITC Code)

Product Description

8708.94.00

STEERING COLUMNS

 

 

PRODUCTION STATUS As on 31.03.2010

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

 

2009-2010

Nos.

NA

1400000

1126891

 

 

 

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

300 (Approximately)

 

 

Bankers :

The Bank of Tokyo – Mitsubishi UFJ Limited

Address : Venkatramana Centre, 6th Floor, 563/2, Anna Salai Teynampet, Chennai – 600018, Tamilnadu, India

 

 

Facilities :

Secured Loan

[From Bank]

31.03.2010

Rs. in million

31.03.2009

Rs. in million

Term Loan

85.000

91.667

Working Capital Demand Loan

--

56.000

TOTAL

85.000

147.667

 

Notes :

 

  • Secured term loan amounting to nil were secured by first charge by way of hypothecation of Plant and machinery at uttaranchal unit of the company
  • Secured term loans amounting to Rs. 85.000 million are secured by hypothecation of movable assets acquired or to be acquired out of the proceeds of the term loan.
  • Working capital demand loans were secured by hypothecation of documents of title to goods/accepted bills of exchange inventory and receivables and all other current assets.
  • As of the year end, the company is in the process of making necessary filings with registrar of the companies for satisfaction of the charges on loans fully repaid during the year.

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

 Price Waterhouse

Chartered Accountant

Address :

32, Khader Nawaz Khan Road, Nungambakkam, Chennai – 600006, Tamilnadu, India

PAN No. :

AAEFP5579P

 

 

CAPITAL STRUCTURE

 

Authorised Capital : As on 23.07.2010

 

No. of Shares

Type

Value

Amount

 

 

 

 

18,000,000

Equity Shares

Rs. 10/- each

Rs. 180.000 million

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital : As on 23.07.2010

No. of Shares

Type

Value

Amount

 

 

 

 

17,900,000

Equity Shares

Rs. 10/- each

Rs. 179.000 million

 

 

 

 

 

 

 

 

 

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

179.000

179.000

179.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

177.751

171.000

171.000

4] (Accumulated Losses)

0.000

(55.891)

(61.156)

NETWORTH

356.751

294.109

288.844

LOAN FUNDS

 

 

 

1] Secured Loans

85.000

147.667

70.333

2] Unsecured Loans

44.966

90.695

13.825

TOTAL BORROWING

129.966

238.362

84.158

DEFERRED TAX LIABILITIES

0.815

0.910

1.005

TOTAL

487.532

533.381

374.077

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

487.066

514.137

212.399

Capital work-in-progress

21.184

3.065

202.573

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

23.231

42.054

19.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
151.144

136.632

56.852

 

Sundry Debtors
138.562

138.041

51.966

 

Cash & Bank Balances
10.278

14.272

0.024

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
120.270

74.302

63.678

Total Current Assets
420.254

363.247

172.520

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
430.954

311.745

182.203

 

Other Current Liabilities
15.790

66.921

43.354

 

Provisions
17.459

10.456

6.923

Total Current Liabilities
464.203

389.122

232.485

Net Current Assets
(43.949)

(25.875)

(59.965)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

487.532

533.381

374.007

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

1634.893

777.482

503.504

 

 

Other Income

26.170

10.647

6.660

 

 

TOTAL  (A)

1661.063

788.129

510.164

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Sold

1193.073

542.887

325.000

 

 

Employee Cost

122.182

86.715

60.336

 

 

Other Manufacturing, Administrative and Selling Expenses

191.760

115.896

95.528

 

 

TOTAL  (B)

1507.015

745.498

480.864

 

 

 

 

 

Less

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

154.048

42.631

29.300

 

 

 

 

 

Less

FINANCIAL EXPENSES  (D)

16.069

17.168

5.701

 

 

 

 

 

 

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

137.979

25.463

23.599

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

56.514

42.492

23.711

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)             (G)

81.465

(17.029)

(0.112)

 

 

 

 

 

Less

TAX   (I)

18.823

(22.294)

1.981

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)  (J)

62.642

5.265

(2.093)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(55.891)

(61.156)

(59.063)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

6.751

(55.891)

(61.156)

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Components

651.826

294.246

86.011

 

 

Stores & Spare Parts

4.258

3.980

1.647

 

 

Capital Goods

1.534

63.649

56.540

 

 

Others

0.000

0.000

0.000

 

TOTAL IMPORTS

657.618

361.875

144.198

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.50

0.29

(0.12)

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
3.77

0.67

(0.41)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.98

(2.19)

(0.02)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.98

(1.94)

(0.02)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.23

(0.06)

(0.00)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.67

2.13

1.10

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.91

0.93

0.74

 

 

LOCAL AGENCY FURTHER INFORMATION

 

APPROPRIATION

 

Profit available for appropriation is Rs. 6.75 million. As the profit available for appropriation is low, the same is being retained as surplus in the profit and loss account. Hence, the directors have not recommended any dividend during the year.

 

* INDUSTRY STRUCTURE AND DEVELOPMENT

 

 

Growth in %

Segment

2009-10

2008-09

Passenger Car

28

5

Utility Vehicles

24

-11

Small Commercial Vehicles (One Ton & below)

8

12

Light Commercial Vehicles

77

-24

Medium and Heavy Commercial Vehicles

30

-35

Three Wheelers

25

-1

Two Wheelers

25

4

Farm Tractors

27

-7

Source: Society of Indian Automobiles Manufacturers

 

The domestic market continues its strong recovery which started in January 2009. Heavy and Light Commercial Vehicle segments recovered strongly in the second half of the year. The Passenger Cars continued to do extremely well and had a record year. The Farm Tractors achieved its highest ever production in the current financial year.

 

* OPERATIONAL AND FINANCIAL PERFORMANCE

Sales and operating revenue grew by 102% compared to 49% in the previous year this was lead by a very strong growth of 110% in OEM.

 

The profit before tax for the year was Rs. 81 million against loss of Rs. 17 million in the previous year. This was achieved not only due to a robust growth in sales but also effective cost reduction initiatives and a reasonably stable raw material cost trend. Compared to the previous year the foreign exchange volatility was also far less which helped the performance.

 

* OUTLOOK

Domestic market is expected to continue its strong growth. Passenger Car and Two wheeler are expected to register significant growth with new product launches. Light and heavy Vehicles and tractors are expected to continue its growth momentum although at a lower rate.

 

Prices of commodities like steel and oil have started hardening but the general expectation is that the increases will be moderate. The recent trend  of strengthening of the Indian currency is causing concern. The continuance of subsidized exports from China and the maintenance of artificial peg on their currency could adversely affect Indian export in the medium term.

 

The Company will continue to focus on improving productivity and quality besides cost reduction initiatives to sustain the improved performance.

 

MERGER OF RANE INVESTMENT LIMITED, THE JOINT VENTURE PARTNER WITH RANE HOLDINGS LIMITED

 

During the year Rane Investments Limited, the joint-venture partner in the company has merged with its holding company viz. Rane Holdings Limited, Vide order of the Madras High Court dated September 29, 2009. In terms of the said order sanctioning the scheme, all assets and liabilities of Rane Investments Limited Are transferred and vested with Rane Holdings Limited With effect from the Appointed Date viz April 1, 2009. As a result, Rane Holdings Limited Has become the joint-venture partner in the company.

 

FIXED ASSETS

 

Tangible Assets

  • Land Freehold
  • Land Leasehold
  • Building
  • Plant and Machinery
  • Office Equipment
  • Furniture and Fittings
  • Vehicles

Intangible Assets

  • Software License
  • Technical Know how

 

 

Bankers Charges Report as per Registry

 

This form is for

Modification of charge

Charge identification number of the modified 

10112570

Corporate identity number of the company

U129141TN1995PLC030621

Name of the company

RANE NSK STEERING SYSTEMS LIMITED

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

MAITHRI, 132, CATHDRAL ROAD, MADRAS, 600086, Tamilnadu, INDIA

Type of charge

Movable Property (not being pledge)

 

Particular of charge holder

The Bank of Tokyo – Mitsubishi UFJ Limited

Address : Venkatramana Centre, 6th Floor, 563/2, Anna Salai Teynampet, Chennai – 600018, Tamilnadu, India

Nature of description of the instrument creating or modifying the charge

Letter dated January 30, 2009 from the banker

Date of instrument Creating the charge

30.01.2009

Amount secured by the charge

Rs. 85.000 Millions

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

(a) Rate of Interest – No change

 

(b) Terms of Repayment  - No change

 

(c) Margin – No change

 

(d) Extent and Operation of the charge – the charge operates to cover the movable assets of the company.

Short particulars of the property charged

The charge operates to cover the movable assets of the company.

Particulars of the present modification 

The present modification, the charge created on the immovable assets of the company is removed.

 

AS PER WEBSITE DETAILS

 

PROFILE  

 

  • Incepted in 1995

 

  • Joint venture agreement with NSK, Japan to establish Rane NSK Steering Systems Limited (RNSSL).

 

  • Manufactures comprehensive wide range of Energy Absorbing Steering

 

  • Columns

 

  • Market leader in steering columns

 

  • Preferred OE partner to major Passenger Car and Multi Utility vehicle manufacturers.

 

 

 

MANUFACTURING AND QUALITY  

 

  • State of the art manufacturing facility at Chennai

 

  • Independent manufacturing cells for production of Energy Absorbing and Collapsible Columns, Tilt and Telescopic Steering Columns, Intermediate Shafts and Universal joint Assemblies

 

  • TS 16949 : 2002 certification

 

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.44.49

UK Pound

1

Rs.71.24

Euro

1

Rs.64.39

 

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

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

4

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

44

 

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.