MIRA INFORM REPORT

 

 

Report Date :

20.06.2011

 

IDENTIFICATION DETAILS

 

Name :

ARROW COATED PRODUCTS LIMITED

 

 

Registered Office :

5D, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai-400053, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

30.10.1992

 

 

Com. Reg. No.:

11-069281

 

 

Capital Investment/ Paid-up Capital:

Rs. 52.896 Millions

 

 

CIN No.:

[Company Identification No.]

L21010MH1992PLC069281

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMA08415B

 

 

Legal Form :

A Public Limited Liability Company. The company’s Shares are listed on stock exchange.

 

 

Line of Business :

Manufacturer of Water Soluble films, Bio Compostable and Bio Degradable Films and Materials, Water Transfer Printing Materials, Security Products, High Strength Paper, Water Soluble Paper, MMS, etc.

 

 

No. of Employees:

More than 50 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 440000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability of the company is under pressure. 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. Yadav

Designation :

Account Department

Date :

18.06.2011

 

 

LOCATIONS

 

Registered Office :

5D, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai-400053, Maharashtra, India

Tel. No.:

91-22-26352500/ 40749000/ 40749008

Fax No.:

91-22-66923377/ 40749099

E-Mail :

yadav@arrowcoated.com

sales@arrowcoated.com

career@arrowcoated.com

patent@arrowcoated.com

info@arrowcoated.com

sandhya@arrowcoated.com

Website :

http://arrowcoated.com

Area :

Owned

 

 

Factory  :

5310, GIDC, Ankleshwar-393002, Gujarat, India

 

 

DIRECTORS

 

As on 14.09.2010

 

Name :

Mr. Shilpan P Patel

Designation :

Chairman cum Managing Director

Address :

303-A, Suman Apartments, Lokhandwala Complex, Andheri (West), Mumbai-400053, Maharashtra, India

Date of Birth/Age :

25.07.1956

Date of Appointment :

30.10.1992

DIN No.:

00341068

 

 

Name :

Mr. Haresh Chhotalal  Mehta

Designation :

Director

Address :

Meera Sagar, Bunglow No. 1, Opposite Param Keshav Baug, Navroji Lane, Ghatkopar (West), Mumbai-400086, Maharashtra, India

Date of Birth/Age :

13.07.1953

Date of Appointment :

01.12.1993

DIN No.:

00376589

 

 

Name :

Mr. Vijay Dhar

Designation :

Director

Address :

178, Golf Links, New Delhi, Delhi-110003, India

Date of Birth/Age :

18.05.1941

Date of Appointment :

30.06.2005

DIN No.:

00074641

 

 

Name :

Mr. Fardeen Homi Taraporewala

Designation :

Director

Address :

B-3.1, Elite Flats, Dufnala PO. PS Shahibaug, Ahmedabad, Gujarat, India

Date of Birth/Age :

16.11.1953

Date of Appointment :

30.01.2009

DIN No.:

02191781

 

 

Name :

Mr. Anil Krishnamurarilal Saxena

Designation :

Additional Director

Address :

226, 3rd Floor, Tarapore Garden Society, I-Wing, Link Road, Oshiwara Police Station, Andheri (West)l, Mumbai-400053, Maharashtra, India

Date of Birth/Age :

24.05.1954

Date of Appointment :

21.01.2011

DIN No.:

02220574

 

 

Name :

Mr. Bhikulal Sakarchand Vasa

Designation :

Director

Address :

Shri Kunj, II Floor, Room No. 5, V.M. Road, Juhu, Mumbai-400056, Maharashtra, India

Date of Birth/Age :

27.11.1936

Date of Appointment :

01.12.1993

Date of Ceasing:

31.01.2010

 

 

Name :

Mr. Bruce Michael Drew

Designation :

Director

Address :

The Bowling Green 8, The Downs Dunmow, Great Britain- CM61DT

Date of Birth/Age :

15.07.1941

Date of Appointment :

04.09.2009

Date of Ceasing:

02.08.2010

 

 

KEY EXECUTIVES

 

Name :

Mr. Yadav

Designation :

Account Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

 

No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

2,342,615

43.79

Bodies Corporate

363,100

6.79

Sub Total

2,705,715

50.57

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

2,705,715

50.57

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

20,900

0.39

Sub Total

20,900

0.39

(2) Non-Institutions

 

 

Bodies Corporate

250,895

4.69

Individuals

 

 

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

1,386,527

25.92

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

843,479

15.77

Any Others (Specify)

142,682

2.67

Non Resident Indians

83,016

1.55

Directors & their Relatives & Friends

59,666

1.12

Sub Total

2,623,583

49.04

Total Public shareholding (B)

2,644,483

49.43

Total (A)+(B)

5,350,198

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)

5,350,198

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Water Soluble films, Bio Compostable and Bio Degradable Films and Materials, Water Transfer Printing Materials, Security Products, High Strength Paper, Water Soluble Paper, MMS, etc.

 

 

Products :

Product Description

ITC Code

Water Soluble Film- Others

3919

Stamping Foils

3212000

 

 

Terms :

 

Purchasing :

Depend

 

 

GENERAL INFORMATION

 

Customers :

MNC

 

 

No. of Employees :

More than 50 (Approximately)

 

 

Bankers :
  • State Bank of India, Andheri East Branch, Mumbai-400069, Maharashtra, India
  • Indusind Bank Limited, 2401, Gen Thimmayya Road, Contonment, Pune-411001, Maharashtra, India 

 

 

Facilities :

Secured Loans

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

From Indusind Bank, Mumbai Main Branch

(Secured by hypothecation of inventory, book debts and other current assets and first mortgage and / or hypothecation of factory plant at Ankleshwar and other Fixed assets of the  company at various location and office premises in Mumbai of Arrow Convertors Private Limited)

22.888

25.489

Other Loans

(Who have a lien on and right of repossession of specific assets)

0.000

0.670

Total

22.888

26.159

 

 

 

Unsecured Loans

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

From Directors

14.650

15.166

From Others

39.799

34.052

Total

54.449

49.218

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

 J.A. Rajani and Company

Chartered Accountant

Address :

402, Lok Ratna, 26 Pushtikar Society, Patel Estate Road, Jogeshwari (West), Mumbai-400010, Maharashtra, India

PAN No.:

AGJPR5131Q

 

 

Entities in which directors or their relatives have control/ significant influence:
  • Arrow Convertors Private Limited
  • Grace Paper Industries Private Limited
  • Jayna Packaging Private Limited
  • Arrow Digital Private Limited

 

 

Associates:

SP Arrow Bio-Plast Private Limited

 

 

Subsidiaries :
  • Arrow Coated Products (UK) Limited
  • Nagra lD Arrow Secure Cards Private Limited

CIN No.: U74999MH2006PTC165191

  • Advance IP Technology Limited

 

 

CAPITAL STRUCTURE

 

As on 14.09.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

12000000

Equity Shares

Rs. 10/- each

Rs. 120.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5350198

Equity Shares

Rs. 10/- each

Rs. 53.502 Millions

 

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

12000000

Equity Shares

Rs. 10/- each

Rs. 120.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5289598

Equity Shares

Rs. 10/- each

Rs. 52.896 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

52.896

52.440

50.060

2] Share Application Money

4.269

4.269

18.232

3] Employee Stock option outstanding

6.222

6.149

3.815

4] Reserves & Surplus

47.143

56.559

47.456

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

110.530

119.417

119.563

LOAN FUNDS

 

 

 

1] Secured Loans

22.888

26.159

28.315

2] Unsecured Loans

54.449

49.218

56.904

TOTAL BORROWING

77.337

75.377

85.219

DEFERRED TAX LIABILITIES

0.251

0.000

0.246

 

 

 

 

TOTAL

188.118

194.794

205.028

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

14.758

16.987

20.000

Patents Applications

11.891

9.762

5.549

Capital work-in-progress

0.821

0.786

0.786

 

 

 

 

INVESTMENT

2.676

2.676

2.676

DEFERREX TAX ASSETS

0.000

0.445

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
38.975

39.783

58.388

 

Sundry Debtors
72.240

108.196

120.542

 

Cash & Bank Balances
1.843

6.315

14.356

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances
68.872

39.957

35.975

Total Current Assets
181.930

194.251

229.261

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

8.484

12.433

31.645

 

Other Current Liabilities
5.196

6.895

8.649

 

Provisions
10.785

10.785

12.950

Total Current Liabilities
24.465

30.113

53.244

Net Current Assets
157.465

164.138

176.017

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

Deferred Revenue Expenses

0.507

0.000

0.000

 

 

 

 

TOTAL

188.118

194.794

205.028

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

20.120

45.966

226.109

 

 

Interest Received

0.250

0.362

0.532

 

 

Other Income

1.395

0.001

2.007

 

 

TOTAL                                     (A)

21.765

46.329

228.648

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material Cost and Inventory Adjustments

8.739

24.533

185.743

 

 

Salary and Others Employee Expenses

3.825

5.223

10.045

 

 

Manufacturing Expenses

5.873

5.640

5.171

 

 

Selling Expenses

0.678

0.906

8.805

 

 

Managerial Remunerations

0.000

0.000

1.887

 

 

Other Administrative Expenses

4.854

7.419

11.594

 

 

Prior Period Expenses

0.031

0.056

0.261

 

 

TOTAL                                     (B)

24.000

43.777

223.506

 

 

 

 

 

Less

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

[2.235]

2.552

5.142

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

3.287

3.431

2.781

 

 

 

 

 

 

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

[5.522]

[0.879]

2.361

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

2.538

3.112

3.722

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

[8.060]

[3.991]

[1.361]

 

 

 

 

 

Less

TAX                                                                  (H)

0.696

[0.508]

1.550

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

[8.756]

[3.483]

[2.911]

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

24.163

28.534

29.444

 

Tax and Dividend Adjustments

0.000

[0.887]

[0.750]

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Tax on Dividend

0.000

0.000

[2.355]

 

 

Proposed Dividend

0.000

0.000

[0.396]

 

BALANCE CARRIED TO THE B/S

15.407

24.163

28.534

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1.752

0.476

11.467

 

TOTAL EARNINGS

1.752

0.476

11.467

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Import Value

NA

NA

11.005

 

TOTAL IMPORTS

NA

NA

11.005

 

 

 

 

 

 

Basic/Diluted Earnings Per Share (Rs.)

[1.65]

[0.67]

[0.60]

 

 

Particulars

 

 

 

31.03.2011

Sales Turnover (Approximately)

 

 

40.000

 

The above information has been parted by Mr. Yadav (Account Department).

 

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

4.850

7.780

10.370

3.850

Total Expenditure

5.080

7.730

9.090

7.840

PBIDT (Excl OI)

[0.230]

0.050

1.280

[3.990]

Other Income

0.850

0.890

1.820

4.840

Operating Profit

0.620

0.940

3.100

0.850

Interest

0.680

0.740

0.530

2.320

Exceptional Items

0.000

0.000

0.000

[0.260]

PBDT

[0.060]

0.200

2.570

[1.720]

Depreciation

0.530

0.540

0.520

0.870

Profit Before Tax

[0.590]

[0.340]

2.050

[2.590]

Tax

0.000

0.000

0.000

0.000

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

[0.590]

[0.340]

2.050

[2.590]

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

[0.590]

[0.340]

2.050

[2.590]

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
[40.23]

[7.52]

[1.27]

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
[40.06]

[8.68]

[0.60]

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
[4.10]

[1.89]

[0.55]

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
[0.07]

[0.03]

[0.01]

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.92

0.88

1.16

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
7.44

6.45

4.31

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS

 

(Rs. in Millions)

Particulars

31.03.2010

31.03.2009

31.03.2008

 

Sundry Creditors

 

 

 

Sundry Creditors for Goods

5.157

9.651

28.061

Sundry Creditors for Expenses and others

3.327

2.782

3.584

Total

8.484

12.433

31.645

 

 

Operations:

 

The total Income form operations including other income for the financial year amounted to Rs. 21.764 Millions as compared to Rs. 46.329 Millions in the previous year. The company has incurred net loss of Rs. 8.758 Millions during the year after providing for depreciation of Rs. 2.538 Millions and taxation of Rs. 69.600 Millions. After adjustments of brought forward balance of Rs. 24.163 Millions from previous year Rs. 15.405 Millions has been carried to the Balance Sheet.

 

Contingent Liabilities not provided for are:

 

  •  Customs Authority amounting to Rs. Nil (Previous year Rs. 6.600 Millions)
  • Provident fund and Esic Amounting to Rs. Nil (Previous year Rs. 0.243 Million)
  • Sales Tax amounting to Rs. 3.573 Millions (Previous year Nil)
  • Income Tax Rs. 0.983 Million (Previous year Rs. 0.983 Million)
  • Buy back of Machine Rs. 29.606 Millions (Previous year Rs. 45.045 Millions)

 

 

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

L21010MH1992PLC069281

Name of the company

ARROW COATED PRODUCTS LIMITED

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

5D, Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai-400053, Maharashtra, India

This form is for

Modification of Charge

Charge identification number of the charge to be modified

 10036323

Type of charge

Immovable Property

Particular of charge holder

Indusind Bank Limited, 2401, Gen Thimmayya Road, Contonment, Pune-411001, Maharashtra, India 

 

Email: companysecretary@indusind.com

Nature of instrument creating charge

No dues certificate for Cash Credit Facility of Rs. 30.000 Millions

Date of instrument Creating the charge

02.09.2010

Amount secured by the charge

Rs. 22.500 Millions

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

Rate of Interest

Interest as may be stipulated by the bank from time to time

 

Terms of Repayment

On Demand

 

Margin

As may be stipulated by Bank from time to time

 

Extent and Operation of the charge

The company accorded its oral consent to the Bank to continue to retain the title deeds in respect of its immovable properties as security for repayment of corporate loan of Rs. 22.500 Millions, together with all interest, costs, chares expenses and other monies due and payable under the said facilities by the bank to the company.

Short particulars of the property charged

Plot No. 5310 in the Ankleshwar Notified Area consisting of Revenue Survey Nos. 292/2P, of Piraman and 250P of Bhadkodra within the Village limited of Piraman and Bhadkora.

Particulars of the present modification

The charge now stands reduced from Rs. 52.500 Millions to  Rs. 22.500 Millions (Corporate Loan of Rs. 22.500 Millions), in favour of the bank.

 

Fixed Assets:

 

  • Factory Land
  • Factory Building
  • Office Building
  • Plant and Machinery
  • Furniture and Fixture
  • Office Equipments
  • Lab Equipments
  • Electric Installation
  • Motor Car
  • Patent

 

 

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.44.93

UK Pound

1

Rs.72.43

Euro

1

Rs.63.62

 

 

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

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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

29

 

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.