MIRA INFORM REPORT

 

 

Report Date :

29.07.2011

 

IDENTIFICATION DETAILS

 

Name :

PRIYA LIMITED

 

 

Registered Office :

4th Floor, Kimatrai Building, 77-79, Maharshi Karve Marg, Marine Lines (East), Mumbai-400002, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

22.08.1986

 

 

Com. Reg. No.:

11-040713

 

 

Paid-up Capital :

Rs. 30.023 Millions

 

 

CIN No.:

[Company Identification No.]

L99999MH1986PLC040713

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMP15757A

 

 

PAN No.:

[Permanent Account No.]

AAACP2210Q

 

 

Legal Form :

Public Limited Liability Company.

The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in the Business of International Trade of Electronic Products and Export of Dyestuffs, Bulk Pharmaceuticals and intermediates.

 

 

No. of Employees :

Information not divulged by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 1100000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

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

 

 

INFORMATION DENIED BY

 

Name :

Mr. Harish

Designation :

Accounts Department

 

 

LOCATIONS

 

Registered Office/Head Office :

4th Floor, Kimatrai Building, 77-79, Maharshi Karve Marg, Marine Lines (East), Mumbai-400002, Maharashtra, India

Tel. No.:

91-22-42203100

Fax No.:

91-22-42203167

E-Mail :

basavraj.loni@priyagroup.com

gaurav.munoli@priyagroup.com

Website :

http://www.priyagroup.com

 

 

Branches :

Located at:

 

  • Ahmedabad
  • Bangalore
  • Bhubaneshwar
  • Chennai
  • Chandigarh
  • Kolkata
  • Kochi
  • Lucknow
  • New Delhi
  • Secunderabad

 

 

DIRECTORS

 

AS ON 31.03.2011

 

Name :

Mr. A. K. Bhuwania

Designation :

Chairman

 

 

Name :

Mr. R. K. Saraswat

Designation :

Director

 

 

Name :

Mr. M. K. Arora

Designation :

Director

 

 

Name :

Mr. Ashish Bhuwania

Designation :

Executive Director

 

 

Name :

Mr. Aditya Bhuwania

Designation :

Executive Director

 

 

Name :

Mr. Anuj Bhargava

Designation :

Director

 

 

Name :

Mr. P. V. Hariharan

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Gaurav Munoli

Designation :

Company secretary

 

 

Name :

Mr. Rakesh Jain

Designation :

Chief financial officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2011

 

Category of Shareholder                                               

 

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

1,959,360

65.26

Bodies Corporate

275,800

9.19

Sub Total

2,235,160

74.45

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

2,235,160

74.45

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

100

-

Sub Total

100

-

(2) Non-Institutions

 

 

Bodies Corporate

40,338

1.34

Individuals

 

 

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

446,290

14.86

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

129,649

4.32

Any Others (Specify)

150,763

5.02

NRIs/OCBs

125,000

4.16

Trusts

100

-

Non Resident Indians

25,120

0.84

Clearing Members

543

0.02

Sub Total

767,040

25.55

Total Public shareholding (B)

767,140

25.55

Total (A)+(B)

3,002,300

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)

3,002,300

-

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the Business of International Trade of Electronic Products and Export of Dyestuffs, Bulk Pharmaceuticals and intermediates.

 

 

Products :

Product Description

Item Code

Thin Client Itona

903289.90

Computer Mother Boards

847330.20

Laptop

847130.10

 

 

GENERAL INFORMATION

 

No. of Employees :

Information not divulged by management

 

 

Bankers :
  • Indian Bank
  • Bank of India
  • Union Bank of India

 

 

Facilities :

Particulars

31.03.2011 (Rs. In Millions)

31.03.2010 (Rs. In Millions)

Secured Loans

 

 

Working capital facilities from company's bankers.

(secured against hypothecation of goods and book debts, Equitable mortgage on specific immovable properties Of the company and of related parties, hypothecation of Other movable assets of the company also personally Guaranteed by some of the directors and pledge of Shares of the company by the promoters. )

218.396

189.693

Vehicle loan from finance companies

(secured by hypothecation of vehicle)

0.000

0.133

Total

218.396

189.826

 

Particulars

31.03.2011 (Rs. In Millions)

31.03.2010 (Rs. In Millions)

Unsecured Loans

 

 

Inter Corporate Deposits

39.546

37.737

Loans from Director

0.652

7.286

Total

40.198

45.023

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

M. L. Bhuwania and Company

Chartered Accountant

Address :

Mumbai, Maharashtra, India

 

 

Associates/Subsidiaries :
  • Priya International Limited
  • Priya Chemicals
  • Gaurav Electrochem Private Limited
  • Brent Properties Investment Private Limited
  • Chesire Properties Investment Private Limited
  • Halifax Properties Investment Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6500000

Equity Shares

Rs.10/- Each

Rs.65.000 millions

1000000

Unclassified Shares

Rs.10/- Each

Rs.10.000 millions

 

Total

 

Rs.75.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3002300

Equity Shares

Rs.10/- Each

Rs.30.023 millions

 

 

 

 

 

NOTE

 

(Of The Above Shares, 1,800,000 Shares Are Allotted As Fully Paid -Up Bonus Shares by Capitalisation of General Reserves)

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

30.023

30.023

30.023

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

256.912

240.367

230.939

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

286.935

270.390

260.962

LOAN FUNDS

 

 

 

1] Secured Loans

218.396

189.826

192.104

2] Unsecured Loans

40.198

45.023

39.035

TOTAL BORROWING

258.594

234.849

231.139

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

545.529

505.239

492.101

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

25.889

26.201

27.965

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

36.049

36.175

36.185

DEFERREX TAX ASSETS

3.379

2.435

2.318

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
70.145
43.547

40.629

 

Sundry Debtors
463.799
461.254

587.161

 

Cash & Bank Balances
46.146
58.166

32.869

 

Other Current Assets
11.729
18.642

6.863

 

Loans & Advances
96.469
87.871

82.139

Total Current Assets
688.288
669.480

749.661

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
154.916
186.866

285.370

 

Other Current Liabilities
16.777
19.015

16.892

 

Provisions
36.383
23.171

21.766

Total Current Liabilities
208.076
229.052

324.028

Net Current Assets
480.212
440.428

425.633

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

545.529

505.239

492.101

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

2205.492

1921.592

2003.507

 

 

Other Income

10.577

14.947

13.883

 

 

TOTAL                                     (A)

2216.069

1936.539

2017.390

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Material

2080.058

1802.657

1831.685

 

 

Payment to and Provision for Employees

21.793

19.009

19.180

 

 

Administrative, Selling and Other Expenses

61.576

56.777

86.001

 

 

TOTAL                                     (B)

2163.427

1878.443

1936.866

 

 

 

 

 

Less

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

52.642

58.096

80.524

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

20.380

37.045

40.328

 

 

 

 

 

 

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

32.262

21.051

40.196

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

2.559

2.307

3.008

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

29.703

18.744

37.188

 

 

 

 

 

Less

TAX                                                                  (H)

9.657

7.566

12.208

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

20.046

11.178

24.980

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

43.252

33.825

8.844

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

3.002

1.501

0.000

 

 

Corporate Dividend Tax

0.499

0.249

0.000

 

BALANCE CARRIED TO THE B/S

59.797

43.252

33.825

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

1135.361

1095.435

1248.715

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Traded Goods

1098.890

1015.420

942.244

 

TOTAL IMPORTS

1098.890

1015.420

942.244

 

 

 

 

 

 

Earnings Per Share (Rs.)

6.68

3.72

8.32

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
0.90
0.58

1.24

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
1.35
0.98

1.86

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.16
2.69

4.78

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.10
0.07

0.14

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.63
1.72

2.13

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
3.31
2.92

2.31

 

 

LOCAL AGENCY FURTHER INFORMATION

 

OPERATIONS

During the year the Company has achieved aggregate turnover of Rs. 2216.068 millions as compared to Rs. 1936.539 millions in the previous year. The Company has earned profit after tax and exceptional item of Rs. 20.046 millions in 2010-2011 as compared to Rs. 11.178 millions in the previous year.

 

Despite of recessionary trends which continued globally, the company achieved better results in comparison to performance of previous year. Although the Company had a slow start, momentum was picked up progressively which can be experienced from the performance of last three quarters. There is marginal increase in turnover, inspite of economic slowdown in USA and in European countries.

 

The Company continued to focus on the hardware business which has been major revenue earner, which mainly includes marketing of VXL thin clients and other computer peripherals such as Notebooks from MSI and Computer peripherals (Keyboard/Mouse, Gaming Cabinets and SMPS), networking products from SMC. The chemical division of the company has also experienced a increase in turnover as compared to the performance of previous year. As regards to infrastructure, the Company’s head office and all the branches are adequately equipped to provide complete support to the customers. Internal control systems have been well established and cost consciousness in branch operations has also led to improved profitability.

 

The Directors are confident that the company will strive hard to maintain the performance and improve the same in the current year.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

The Company is engaged in the business of international trade of electronic products and export of dyestuffs, bulk

pharmaceuticals and intermediates.

 

 

ECONOMY AND INDUSTRY OVERVIEW

The Indian economy has emerged with remarkable rapidity from the slowdown caused by the Global Financial crisis of 2007-09. The growth rate has been 8.6% in 2010-11 and is expected to be around 9% in the next fiscal year. India is a large, vibrant and one of the fastest growing economies in the world. As a result of impressive growth of the economy, steadily increasing buying power of the people and aspirations of the young, the consumption of electronics gadgets in the country is growing fast.

 

The impact of the global economic recession is now well behind them and the IT hardware industry in India is once again on a revival path. The year 2010-11 has indeed witnessed an excellent comeback by the Indian IT hardware market. Easing of the Economic slowdown and improved sentiments among both the consumer and business segment are the reasons behind the impressive growth of the PC market, especially during the second half of the year 2010- 11. Almost all segments of the IT hardware registered a healthy growth.

 

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

Electronics Division:

The Information, Communication Technology and Electronics (ICTE) is the world’s largest and fastest growing industry. ICTE is increasingly finding applications in all sectors of the economy and thus is accepted as a key enabler in development. The Government has identified growth of electronics hardware manufacturing sector as a thrust area and has taken a number of steps on an ongoing basis for promotion of this industry in the country. Setting up of a Mission to implement schemes and policies in a focused and targeted manner, incentivization, eco-system development and attracting investment in electronics hardware manufacturing sector are amongst the major initiatives which are under consideration of the Government to take advantage of this opportunity.

 

PC sales are expected to record a growth of 12 per cent in 2010-11 to touch 9.7 million. The Notebook sales are estimated to be 3.5 million in 2010-11 against 2.5 million in 2009-10, a growth of 40 per cent. This shows that Notebooks have caught the fancy of the consumers. Desktop sales are expected to reach 6.2 million in 2010-11 against 5.5 million in 2009-10, a growth of 12.7 per cent.

 

India is one of the fastest-growing IT systems and hardware market in the Asia-Pacific region. Most of the prominent global vendors and some locals have strong presence in the Indian market. Most MNC’s have their assembly units in India.

 

 

Chemical Division:

Chemical Industry is one of the oldest industries in India, which contributes significantly towards industrial and economic growth of the nation. The Indian Chemical Industry is an integral component of the country’s economy contributing a little under 7 per cent of the Indian GDP. It has developed well over the years in terms of technical capability and capacity. India will become an important source for Chemicals/ Dyestuff/Pharmaceuticals and pose a strong alternative to China.

 

 

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Electronics Division:

The performance of the company was satisfactory during the year in comparison with last year turnover. The segment result, before adjustment for unallocated expenses (net) and provisions for taxation, marginally decreased to Rs. 78.973 Millions as compared to Rs. 88.356 Millions in the previous year.

 

Chemical Division:

There is increase in the turnover in comparison to last year’s turnover and the margin too has increased in the same period. Indian dyestuff industry continues to face strong Chinese competition. Judicious mix of product range has enabled them to select and grow business in various markets

 

FUTURE OUTLOOK

Electronics Division:

As per the Report of the Task Force, constituted by Department of Information Technology, the demand for electronics hardware in the country is projected to increase from the present US$ 45 billion in 2009 to US$ 400 billion by 2020. As against this demand projection, electronics hardware production (supply) is projected to grow from US$ 20 billion in 2009 to US$ 400 billion by 2020, including exports of US$ 80 billion.

 

They are hopeful to tap the increased market share by improving the distribution network and providing strong technical support team. With the advent of Thin Client computing Big corporate houses, banks, educational and healthcare segments are increasingly opting the same in comparison to P.C - Server technology which decreases the IT costs of the Organization significantly.

 

Chemical Division:

New product range coupled with success in newer markets are contributing to there growth. Latin American countries like Brazil and Argentina have shown signs of surge in demand. They are cautiously trying to explore business in these countries

 

 

Contingent Liabilities:

 

Particulars

31.03.2011

(Rs. In millions)

Disputed Income Tax liability

11.145

Disputed Sales tax liability

8.375

Disputed Rent Liability

12.460

 

 

FIXED ASSETS

 

  • Office Premises
  • Laboratory Equipments
  • Office and Other Equipments
  • Furniture and Fixtures
  • Computer
  • Vehicles

 

AS PER WEB DETAILS

 

PROFILE

 

The Priya Group Profile

 

The Priya Group distributes, exports and trades in chemicals, dyestuffs, pharmaceuticals and allied products. Since the inception of the group in 1976, they have become an important player in the industry, with a presence in India and many other countries.

 

The Priya Group is also a major player in the Indian information technology industry. They diversified into IT in 1984-85, starting with components for the IT and electronics industries. Today, their IT products portfolio includes virtually all hardware components and some software titles.

 

The Priya Group comprises two companies. Subject, which has divisions for chemicals exports and IT distribution; and Priya International, which is an indenting agency for specialty chemicals.

Their three core businesses are:

 

  1. Indenting agency for specialty chemicals
  2. Exports of dyestuffs and bulk pharmaceuticals (and intermediates for both)
  3. Distribution of information technology (IT) products

 

The Priya Group is headed by Mr. A.K. Bhuwania, who is supported by a dedicated and experienced team. The aim of Priya group is give thorough and professional service to all their clients and business partners. The Priya Group has a strong nationwide network, with 15 offices in India and is able to give strong local support to all their clients. They have also forged strong links with all major industrial and service companies in India.

 

CHEMICAL EXPORTS

 

Subject is a major exporter of dyes and pharmaceuticals, and they offer a large range of products to customers around the world.

 

They have made pioneering efforts in establishing many items in these product groups, which meet internationally accepted quality standards. They also take active part with both users and producers of these items – in making continuous improvements in the standard and quality of the products supplied. In this, they are helped by their strong relationships with most manufacturers in these sectors.

 

While being competitive on price is important to them, so is quality. All items are subjected to strict pre-shipment checks, using their own laboratories for the main products and the expertise of independent laboratories for the others.

 

Their main markets include:

 

  • Western Europe (Austria, Belgium, Germany, Greece, Italy, Netherlands, Portugal, Spain, Sweden, United Kingdom)
  • Americas (USA, Argentina, Brazil, Mexico, Guatemala)
  • Far East (Japan, South Korea, Taiwan)

 

Their core strengths include:

 

  • A large range of dyes for all applications, including textiles, leather, paper, inks, plastics, pigments, oil and other specialty applications
  • Internationally accepted standards, backed by strict quality monitoring
  • A distinguished customer base spread across the world
  • Amine-free grades of selected products
  • Reverse osmosis processed dyes (high-concentration, salt-free products with low insoluble content)
  • Control on parameters like concentration, solubility, fastness and dischargibility
  • Customised products to meet user requirements
  • Special strength in black and brown dyes for leather and textile applications
  • Ability to offer a complete range of products on a consolidated basis for shipments from India and also from stock points in Europe
  • Intermediates like naphthalene and benzene derivatives, pyrazolones, pigment intermediates, naphthols and fast bases
  • Range complemented by pigments and optical brighteners
  • Special strength in a selected range of volume pharmaceutical products and some specialty/anti-cancer drugs

 

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.44.13

UK Pound

1

Rs.72.05

Euro

1

Rs.63.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

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.