MIRA INFORM REPORT

 

 

Report Date :

13.07.2011

 

IDENTIFICATION DETAILS

 

Name :

GOPALA POLYPLAST LIMITED

 

 

Registered Office :

Plot No.485, Santej Vadsar Road, Santej, Taluka Kalol, District Gandhinagar – 382 721, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

11.06.1984

 

 

Com. Reg. No.:

04-050560

 

 

Capital Investment / Paid-up Capital :

Rs.155.180 millions

 

 

CIN No.:

[Company Identification No.]

L25200GJ1984PLC050560

 

 

Legal Form :

It is a public limited liability company.  The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Woven Sacks.

 

 

No. of Employees :

200 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (28)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 230000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability of the company is under severe pressure. There appears huge accumulated losses recorded by the company. However, 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.

 

INFORMATION PARTED BY

 

Name :

Mr. Lokesh

Designation :

Office Executive

Date :

12.07.2011

 

 

LOCATIONS

 

Registered Office/ Factory 1 :

Plot No.485, Santej Vadsar Road, Santej, Taluka Kalol, District Gandhinagar – 382 721, Gujarat, India

Tel. No.:

91-2764-286514, 286654, 286305

Fax No.:

91-2764-286660

E-Mail :

info@gopalapolyplast.com

gopala@icenet.net

hdpeaccounts@gopalapolyplast.com

Website :

www.gopalapolyplast.com

Location :

Owned

 

 

Factory 2 :

10-11-12, First Floor, Swastik Industrial Estate, Madhuban Dam Road, Silvassa, Union Territory of Dadra and Nagar Haveli, India

 

 

Mailing Address :

I-2, Aakanksha Apartment, Near Sola Railway Crossing, Sola Road, Ahmedabad - 380 061, Gujarat, India

Tel. No.:

91-79-27456699

 

 

Branch Office :

Located at:

 

v      Mumbai

v      Chennai

v      Bangalore

v      Tirupur

v      New Delhi

v      Calcutta

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Mr. Mahendrakumar Somani

Designation :

Chairman

Date of Birth/Age :

02.10.1947

Qualification :

S.S.C.E.

Expertise in specific functional areas :

Industrialist

Date of Appointment :

31.07.2006

List of Companies in which Directorship held as on 31/03/2010 :

v      Kamala Mercantile Limited

v      Gopala Kraft Pack Private Limited

v      Navjeevan Synthetics Private Limited

v      Parag Velvets Private Limited

 

 

Name :

Mr. Manoj Somani

Designation :

Managing Director

 

 

Name :

Mr. Jugal Kishore Khetawat

Designation :

Director

 

 

Name :

Mr. Kashyap Mehta

Designation :

Director

 

 

Name :

Mr. Malay Dalai

Designation :

Director

 

 

Name :

Mr. Ramprakash Khatod

Designation :

Director

 

 

Name :

Mr. Manish Somani

Designation :

Executive Director

Date of Birth/Age :

20.09.1968

Qualification :

B.Com, PGDBM

Expertise in specific functional areas :

Industrialist

Date of Appointment :

20.05.1995

List of Companies in which Directorship held as on 31/03/2010 :

v      Gopala Mercantile Limited

v      Kagaj Marketing and Trading Private Limited

 

 

Name :

Mr. Balkrishna Mittle

Designation :

Director

Date of Birth/Age :

01.05.1945

Expertise in specific functional areas :

Advertisement and Marketing

Date of Appointment :

10.07.2010

List of Companies in which Directorship held on the date of appointment :

v      D.S. Mittle and Sons India Private Limited

 

 

KEY EXECUTIVES

 

Name :

Mr. Lokesh

Designation :

Office Executive

 

 

Name :

Mr. Yogesh Jain

Designation :

Deputy General Manager (Finance) and Compliance Officer

 

 

Name :

Anal Desai

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Category of Shareholders

 

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

2,070,300

9.48

Bodies Corporate

6,100,565

27.94

Sub Total

8,170,865

37.43

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

8,170,865

37.43

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

1,000

-

Sub Total

1,000

-

(2) Non-Institutions

 

 

Bodies Corporate

3,992,001

18.29

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

6,157,788

28.21

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

3,509,346

16.08

Sub Total

13,659,135

62.57

Total Public shareholding (B)

13,660,135

62.57

Total (A)+(B)

21,831,000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

21,831,000

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Woven Sacks.

 

 

Products :

Item Code No. (ITC Code)

39232100

Product Description

PP Woven Sacks

Item Code No. (ITC Code)

58071009

Product Description

Woven Labels

 

v      Custom Woven Clothing Label

v      Woven Clothing Label

v      Custom Woven Label

v      Personalized Woven Label

v      Charm Woven Label

v      Woven Garment Label

v      Woven Name Label

v      Woven Fabric Label

v      Label Apparel Woven

v      Woven Label Machine

v      Heirloom Woven Label

v      Sewing Woven Label

v      Woven Label Wholesale

v      Woven Size Label

v      Woven Label Clothes

v      Iron Woven Label

 

 

Imports :

 

Products :

Raw Materials

Countries :

Switzerland

 

 

Terms :

 

Purchasing :

Depend

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Woven Sacks

MT

N.A.

13100

12448*

 

 

 

 

 

 

* Excluding Production Outside on Jobwork basis 170 MT

 

GENERAL INFORMATION

 

Customers :

Manufacturer

 

v      Gujarat Ambuja Cements Limited

v      Vikram Cement – A unit of Grasim Industries Limited

v      Ultratech Cements Limited – (erstwhile Cement Division of L and T)

v      JK Lakshmi Cement Limited

v      ACC Limited

v      Sanghi Industries Limited – Cement Divison

v      Rain Industries Limited – (formerly Priyadarshini Cements)

v      Shree Cement Limited

v      Birla Corp Limited

v      Century Cement

v      Mahiar Cement

 

 

No. of Employees :

200 (Approximately)

 

 

Bankers :

v      State Bank of India, Ghandhidham Main Branch

v      IDBI Limited

v      Dena Bank

 

 

Facilities :

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Working Capital

 

 

From Bank

179.317

181.223

Term Loan

 

 

From Bank

260.641

259.343

Hire Purchase Loans

 

 

From Banks

0.173

1.013

From NBFCs

(Secured against Hypothecation of Vehicles financed by them)

0.711

0.160

Total

440.842

441.739

 

Unsecured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

From Body Corporates

35.000

20.000

From Others

0.500

0.000

Total

35.500

20.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

V.K. Moondra and Company

Chartered Accountants

Address :

Santej

 

 

Related Concerns :

v      Indian Bobbin Manufacturing Company (Private) Limited

v      Gopala Kraft Pack (Private) Limited

v      Navjeevan Synthetics (Private) Limited

v      Parag Velvets (Private) Limited

v      Arunodaya Credit and Holding Investment (Private) Limited

v      Gopala Mercantile Limited

v      Vinayaka Credit and Holding Investment (Private) Limited

v      New Life Marketing and Trading (Private) Limited

v      Star Treck Syntex (Private) Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

23000000

Equity Shares

Rs.5/- each

Rs.115.000 millions

450000

Preference Shares

Rs.100/- each

Rs.45.000 millions

 

Total

 

Rs.160.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

22036000

Equity Shares

Rs.5/- each

Rs.110.180 millions

450000

1% Cumulative Redeemable Preference Shares

Rs.100/- each

Rs.45.000 millions

 

Total

 

Rs.155.180 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

155.180

155.180

155.180

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

45.897

45.897

16.330

4] (Accumulated Losses)

(143.457)

(96.979)

0.000

NETWORTH

57.620

104.098

171.510

LOAN FUNDS

 

 

 

1] Secured Loans

440.842

441.739

421.100

2] Unsecured Loans

35.500

20.000

0.000

TOTAL BORROWING

476.342

461.739

421.100

DEFERRED TAX LIABILITIES

0.000

0.000

7.010

 

 

 

 

TOTAL

533.962

565.837

599.620

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

237.527

266.852

274.400

Capital work-in-progress

0.000

0.000

7.750

 

 

 

 

INVESTMENT

0.000

0.375

0.380

DEFERREX TAX ASSETS

25.943

14.769

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
92.907

94.966

105.400

 

Sundry Debtors
187.733

190.231

190.110

 

Cash & Bank Balances
4.025

5.581

5.980

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
40.412

48.519

54.410

Total Current Assets
325.077

339.297

355.900

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

24.412

30.182

36.750

 

Other Current Liabilities
25.725

22.527

 

 

Provisions
4.448

2.747

2.060

Total Current Liabilities
54.585

55.456

38.810

Net Current Assets
270.492

283.841

317.090

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

533.962

565.837

599.620

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Sales (Net of Excise Duty)

1646.334

1293.259

1319.260

 

 

Other Income

0.289

0.738

0.380

 

 

TOTAL                                     (A)

1646.623

1293.997

1319.640

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials

1419.001

1108.436

1291.260

 

 

Manufacturing Expenses

159.091

146.664

 

 

 

Administrative and Selling Expenses

82.799

53.423

 

 

 

Increase/Decrease in stock

(2.877)

7.459

 

 

 

TOTAL                                     (B)

1658.014

1315.982

1291.260

 

 

 

 

 

Less

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

(11.391)

(21.985)

28.380

 

 

 

 

 

Less

INTEREST & FINANCIAL EXPENSES                 (D)

18.946

40.631

38.820

 

 

 

 

 

 

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

(30.337)

(62.616)

(10.440)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

27.204

26.109

30.970

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(57.541)

(88.725)

(41.410)

 

 

 

 

 

Less

TAX                                                                  (H)

(11.063)

(21.317)

0.360

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

(46.478)

(67.408)

(41.770)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(96.979)

(29.571)

NA

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(143.457)

(93.979)

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Sales (Direct Exports only)

11.077

11.273

NA

 

TOTAL EARNINGS

11.077

11.273

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

29.525

3.062

NA

 

 

Stores & Spares

1.664

1.157

NA

 

TOTAL IMPORTS

31.189

4.219

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

(2.11)

(3.06)

(1.90)

 

 

Particulars

 

 

 

31.03.2011

(Approximately)

Sales Turnover

 

 

More than 2000.000

 

 

 

 

 

The above information has been parted by Mr. Lokesh (Office Executive).

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

434.950

400.780

471.450

602.370

Total Expenditure

436.650

395.760

466.140

589.330

PBIDT (Excl OI)

(1.700)

5.020

5.310

13.040

Other Income

0.020

0.260

0.000

0.430

Operating Profit

(1.680)

5.280

5.310

13.470

Interest

4.920

4.630

4.570

8.620

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

(6.600)

0.650

0.740

4.850

Depreciation

6.800

6.800

6.800

5.390

Profit Before Tax

(13.400)

(6.150)

(6.060)

(0.540)

Tax

0.000

0.000

0.000

0.000

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

(13.400)

(6.150)

(6.060)

(0.540)

Extraordinary Items

0.000

0.000

0.000

30.990

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

(13.400)

(6.150)

(6.060)

30.450

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(2.82)
(5.21)
(3.17)

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
(3.50)
(6.86)
(3.14)

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
(10.23)
(14.64)
(6.57)

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
(1.00)
(0.85)
(0.24)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
9.21

4.97

2.68

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
5.96

6.12

9.17

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

20.879

24.412

NA

Creditors for Capital Goods

3.533

5.770

NA

Total

24.412

30.182

NA

 

REPORTING TO BIFR:

 

The accumulated losses of the company at the end of the financial year 31st March, 2010 have resulted in erosion of more than fifty percent of its peak net worth during the immediately preceding four financial years. While the company is taking necessary steps to protect further erosion, the Company will report to the Board for Industrial and Financial Reconstruction about such erosion of net worth as envisaged under Section 23 of the Sick Industrial Companies (Special Provisions) Act, 1985 forthwith upon adoption of audited accounts of the Company for the financial year ended 31st March, 2010.

 

EXPANSION AND MODERNISATION:

 

The company is regularly upgrading its plant and machinery and has spent Rs.13.690 millions on plant and machinery during the year.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

 

Subject has been in the HDPE/PP woven sacks industry right from its inception. Today the Company is one of the largest manufacturer of PP Woven Sacks for Cement Industry in the Country. The Company has also diversified its activities by setting up facilities for manufacture of textile woven labels.

 

In India, Cement demand witnessed a compounded annual growth rate of more that 8% in the last 10 years and is likely to grow annually by about 10% basis on the high correlation which the cement industry bears with the overall GDP growth. This in turn is expected to lead to healthy demand situation for woven sacks. However, rising crude oil and inflation has resulted into inevitable rise in the input costs. Further, upward revision in the gas prices by Bharat Petroleum Corporation Limited has jacked up the power cost by 40%. Apart from this, break down in the Gas based power plant and Tape plant during the year has resulted into losses in the Woven sacks division which has led to net loss in the Company during the year. The Company is pressing hard for upward revision in the conversion prices from its customers, which is expected to go through during the second quarter of the current financial year.

 

The growth of organized retailing through huge malls and increase in the demand of ready to wear garments because of changing fashion trends, have lead to growth in demand of labels. However due to the appreciation of Rupee against the US Dollar the garment exports from the country has plummeted thereby affecting the label business. The Company has made inroads in the domestic garments sector however the margins therein are lower and accordingly the performance of this division was adversely affected.

 

OPPORTUNITIES AND THREATS

 

OPPORTUNITIES:

 

With the beginning of organized retailing of agro products the packaging requirement with value added PP woven bags will emerge creating a new market for the company’s product.

 

Organised retailing has also resulted in a jump in Ready to wear garments sector, promising growth for the label industry.

 

THREATS:

 

The threats of competition out of new capacities, fluctuation in petrochemical prices, increasing interest rates may put pressure on the Company’s performance.

 

OUTLOOK:

 

Demand for the Company’s products depends on the growth in demand for the products of its user industries, such as Cement, Sugar, Foodgrains in case of PP bags and Garment industry in case of Labels. Both the segment are buoyant due to overall growth of economy. Hence the outlook for the both the product is bright for the current year.

 

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

 

The overall financial performance for the year has been lower as compared to previous year due to various factors.

 

FIXED ASSETS:

 

v      Land

v      Building

v      Plant and Machinery

v      Electric Installation

v      D.G. Set

v      Office Equipment

v      Furniture

v      Vehicle

v      Air Conditioner

v      Computer

 

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.44.69

UK Pound

1

Rs.70.87

Euro

1

Rs.62.25

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--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

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

28

 

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.