MIRA INFORM REPORT

 

 

Report Date :

20.06.2011

 

 

Note :- Registered office of the company has been shifted from D- wing, 2nd Floor, Modern Mill Compound, Mumbai, Maharashtra, India to the present address w.e.f. 20.04.2009

 

 

IDENTIFICATION DETAILS

 

Name :

EMERSON PROCESS MANAGEMENT (INDIA) PRIVATE LIMITED (w.e.f. 21.03.2002)

 

 

Formerly Known As :

ROSEMOUNT (INDIA) LIMITED

 

 

Registered Office :

“DELPHI” – B Wing, 601 and 602, 6th Floor, Central Avenue, Hiranandani Business Park, Powai, Mumbai – 400 076, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

25.03.1981

 

 

Com. Reg. No.:

11-24115

 

 

Capital Investment / Paid-up Capital :

Rs.9.000 Millions

 

 

CIN No.:

[Company Identification No.]

U29196MH1981PTC024115

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMF00669E

 

 

PAN No.:

[Permanent Account No.]

AAACF1667M

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Trader of Process Control Instruments.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (65)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 4138000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal 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 :

“DELPHI” – B Wing, 601 and 602, 6th Floor, Central Avenue, Hiranandani Business Park, Powai, Mumbai – 400 076, Maharashtra, India 

Tel. No.:

91-22-66620555

Fax No.:

91-22-66620500

E-Mail :

Sharad.Rane@emerson.com

Mandar.Natekar@emerson.com

Website :

www.emerson.com

 

 

Divisional Office :

Located at:

 

  • Daman
  • New Delhi
  • Vadodara
  • Kolkata
  • Pune
  • Chennai
  • Bangalore
  • Secunderabad
  • Chandigarh
  • Surat
  • Ernakulam
  • Nagpur
  • Indore
  • Visakhapatnam
  • Modern Mill Compound, D Wing, 2nd Floor, Sane Guruji Marg, Jacob Circle, Mumbai – 400 011, Maharashtra, India

 

 

DIRECTORS

 

As On 20.09.2010

 

Name :

Mr. Jasu Shah

Designation :

Chairman

Address :

1100, Shanudeep, 10, Altamount Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

10.02.1937

Date of Appointment :

25.03.1981

DIN No. :

00021494

 

 

Name :

Mr. Suresh N. Talwar

Designation :

Director

Address :

10, Shiv Shanti Bhuvan, 146, Maharshi Karve Road, Churchgate Reclamation, Mumbai – 400 020, Maharashtra, India

Date of Birth/Age :

21.11.1938

Date of Appointment :

25.03.1981

DIN No. :

00001456

 

 

Name :

Mr. Michael Train

Designation :

Director

Address :

Charles Howard Train, 8000, W. Florissant Avenue, St. Louis, Missouvi – USA

Date of Birth/Age :

25.01.1962

Date of Appointment :

09.04.2002

DIN No. :

00736644

 

 

Name :

Mr. Pradipta Sen

Designation :

Director

Address :

304/ 2, Palms, South City 1, Gurgaon – 122 001, Haryana, India

Date of Birth/Age :

07.10.1958

Date of Appointment :

30.12.2003

DIN No. :

00051758

 

 

Name :

Mr. Sunil Khanna

Designation :

Director

Address :

Flat No.03, Seagull Apartment, ML Dahanukar Marg, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

07.07.1955

Date of Appointment :

07.11.2006

DIN No. :

00907147

 

 

Name :

Mr. Sharad Rane

Designation :

Alternate Director and Company Secretary

Address :

Flat No. C – 404, 4th Floor, The Residency, Vishweshwar Nagar, Goregaon (East), Mumbai – 400 063, Maharashtra, India

Date of Birth/Age :

15.03.1959

Date of Appointment :

23.09.2008

 

 

Name :

Mr. Sabayachi Subodh Kumar Mitra

Designation :

Director

Address :

16, Verde Crescent, Singapore 688 731

Date of Birth/Age :

06.10.1964

Date of Appointment :

18.12.2008

DIN No. :

00366616

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 20.09.2010

 

Names of Shareholders

 

No. of Shares

 

Jasu Shah

 

4192

Shweta Shah

 

3600

Maulik Shah

 

3430

Rustom Vakil

 

12

Jasubhai Business Services Private Limited, India

 

216

Jasu Shah HUF

 

900

Maulik Jasubhai HUF

 

250

Akum Mercantile Company Private Limited, India 

 

1400

Jasubhai Media Private Limited, India

 

2700

Maulik Business Services Private Limited, India 

 

1700

Om Sagar Engineering Private Limited, India

 

1600

Akshar Enterprises, India

 

600

Ingtech Engineering, India

 

500

Jasubhai and Shweta (Anusha) Trust

 

250

Khevana Investments Private Limited (India)

 

250

Specialised Institute of Industrial and Technical Education Private Limited, India

 

750

Jasubhai Engineering Private Limited, India

 

1050

Rosemount INC, USA

 

66600

Total

 

90000

 

As on 20.09.2010

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

74.00

Bodies corporate

 

10.74

Directors or relatives of directors

 

12.48

Other top fifty shareholders

 

2.78

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Process Control Instruments.

 

 

Products :

Item Code No. (ITC Code)

90262009

Product Description

Instruments for Measuring, checking pressure

Item Code No. (ITC Code)

90261009

Product Description

Instruments for Measuring, checking flow

Item Code No. (ITC Code)

90278000

Product Description

Gas and Liquid Analytical Instruments

 

PRODUCTION STATUS (As on 31.03.2010)

 

Particulars

Unit

 

Installed Capacity

Actual Production

Instrumentation Products

Nos.

 

99360

72717

Distributed Control System

Nos.

 

100

47

 

 

 

 

 

 

 

GENERAL INFORMATION

 

Bankers :

Not Available

 

 

Facilities :

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

From Banks

0.805

1.786

From Others

Lease obligation in relation to vehicles acquired under finance lease

(Secured by the vehicles acquired under these contracts)

1.434

3.435

Total

2.239

5.221

 

 

 

Banking Relations :

--

 

 

Financial Institution :

Ford Credit Kotak Mahindra Limited, 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai – 400 021, Maharashtra, India

 

 

Auditors :

 

Name :

BSR and Company

Chartered Accountants

Address :

KPMG House, Kamala Mills Compound, 448, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India

Tel. No.:

91-22-30440800

Fax No.:

91-22-30440900

 

 

Holding Company :

Rosemount INC, USA

 

 

Ultimate Holding Company :

Emerson Electric Company, USA

 

 

Associates :

  • ABM Steels Private Limited
  • Asco (India) Limited
  • Jasubhai Business Services Private Limited
  • Jasubhai Engineering Company Limited
  • Maulik Business Services Private Limited
  • Advanced Systek Private Limited

 

 

Fellow Subsidiary :

  • Brooks Instruments BV
  • Brooks Instruments USA
  • Daniel Measurement and Control USA
  • Decision Management Internal
  • Emerson Beijing Instrument Company
  • Emerson Design Engineering Center
  • Emerson Electric Asia Pacific
  • Emerson Electric Company (India) Private Limited
  • Emerson Export Engineering Centre

Address: Shivajinagar, Old Mumbai Pune Highway, Pune – 411005, Maharashtra, India

  • Emerson FZE (Dubai)
  • Emerson Process Management Company Limited, Shanghai
  • Emerson Network Power (India) Private Limited
  • Emerson Process Management Manufacturing GMBH and Company, Germany
  • Emerson Process Management Shared Services UK
  • Emerson Process Management Austin, USA
  • Emerson Process Management Japan Limited
  • Emerson Process Management Flow Technologies Limited
  • Fisher Controls International LLC
  • Fisher Rosemount System Inc Life Science, USA
  • Mobrey Limited
  • Micro Motion Inc
  • Beijing Rosemount Far East Instrument Company Limited
  • Rosemount Analytical Inc Oroville, USA
  • Rosemount Analytical Inc, Irvine
  • Rosemount Tank Gauging India  Private Limited
  • Emerson Process Management Power and Water Solution (India) Private Limited
  • Emerson Process Management (Malaysia) Sdn Bhd
  • Emerson Process Management Asia Pacific (Singapore) Pte Limited
  • Emerson Process Management Flow BV
  • Emerson Process Management, Korea
  • Emerson Process Management Limited, UK
  • Emerson Process Management Australia Private
  • Emerson Process Management PC and E Inc St. Louis
  • Emerson Process Management Pittsburgh
  • Daniel Measurement Solutions Private Limited
  • Daniel Measurement and Control (India) Private Limited
  • Fisher Sanmar Limited
  • Iescom Europe Gmbh and Company Kg. Germany
  • Instrument and Valve Services Company
  • EGS Private Limited

 

 

 

 

 

 

 

CAPITAL STRUCTURE

 

As On 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000

Equity Shares

Rs.100/- each

Rs.10.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

90000

Equity Shares

Rs.100/- each

Rs.9.000 millions

 

 

Of the above:

 

66600 equity shares are held by Rosemount Inc, USA; the holding company.


FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

9.000

9.000

9.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1025.574

986.335

1076.658

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1034.574

995.335

1085.658

LOAN FUNDS

 

 

 

1] Secured Loans

2.239

5.221

6.486

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

2.239

5.221

6.486

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1036.813

1000.556

1092.144

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

114.085

104.856

111.555

Capital work-in-progress (including capital advances)

71.592

11.681

3.651

 

 

 

 

INVESTMENT

0.043

0.043

0.043

DEFERREX TAX ASSETS

71.275

49.158

58.272

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

386.010
335.309

345.882

 

Sundry Debtors

901.355
902.711

551.115

 

Cash & Bank Balances

261.531
233.018

257.994

 

Other Current Assets

198.232
71.174

72.573

 

Loans & Advances

337.047
279.770

171.806

Total Current Assets

2084.175
1821.982

1399.370

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

889.397
408.329

191.050

 

Current Liabilities

285.069
273.535

199.704

 

Provisions

129.891
305.300

89.993

Total Current Liabilities

1304.357
987.164

480.747

Net Current Assets

779.818
834.818

918.623

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1036.813

1000.556

1092.144

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

Income

4069.838

3507.920

 

 

 

Other Income

94.537

23.459

 

 

 

TOTAL                                    

4164.375

3531.379

3176.468

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods sold and services rendered

3085.758

2641.064

 

 

Personnel Cost

304.591

279.813

 

 

 

Manufacturing and Other Expenses

416.991

362.613

 

 

 

TOTAL                                    

3807.340

3283.490

2680.551

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

357.035

247.889

495.916

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

0.400

0.654

0.458

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION                                  

356.635

247.235

495.458

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

28.382

32.799

37.973

 

 

 

 

 

 

PROFIT BEFORE TAX  

328.253

214.436

457.486

 

 

 

 

 

Less

TAX                                                                 

112.180

79.770

161.220

 

 

 

 

 

 

PROFIT AFTER TAX                

216.073

134.666

296.266

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

661.951

765.742

473.125

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

112.685

153.846

0.000

 

 

Proposed Dividend – Final

38.461

38.461

0.000

 

 

Dividend distribution tax

25.687

32.683

0.000

 

 

Transfer to General Reserve

21.607

13.467

0.000

 

 

Adjustment on transitional liability towards employee benefits

0.000

0.000

3.649

 

BALANCE CARRIED TO THE B/S

679.584

661.951

765.742

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB vale of exports

151.467

150.776

282.453

 

 

Service Revenue

77.210

167.056

37.472

 

 

Agency commission

2.704

4.387

4.647

 

 

Others

4.240

2.472

2.725

 

TOTAL EARNINGS

235.621

324.691

327.297

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Finished Goods

140.985

143.119

127.023

 

 

Raw Materials

2346.795

1929.173

1468.361

 

 

Capital Goods

14.205

10.292

10.936

 

TOTAL IMPORTS

2501.985

2082.584

1606.320

 

 

 

 

 

 

Earnings Per Share (Rs.)

2400.81

1496.29

3291.85

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

5.19
3.81

9.33

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

8.06
6.11

--

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

14.93
11.13

30.28

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.32
0.22

0.42

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.26
1.00

0.45

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.60
1.85

2.91

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Background:

 

The Company was incorporated on 25th March, 1981 as a joint venture between Rosemount Inc, USA (‘Rosemount’) and the Jasu Shah Group (‘JS Group’) On 8th August 2000, the joint venture partners entered into a share purchase and shareholders agreement to restructure their relationship, whereby the J S Group agreed to sell 30,600 equity shares to Rosemount resulting in an increase in shareholding of Rosemount from 40% to 74% and thereby making the Company a subsidiary of Rosemount.

 

The Company is engaged in the manufacture and trading of process control instruments.

 

 

OPERATIONS :

 

The Company has posted year on year modest total Bookings growth of 6.2% during the year. Bookings which were almost flat in April - September period, picked up later and recorded a decent growth of 16% in Oct - March period. Major orders received by the company during the year include - Jindal Steel Power (JSPL) Rs 224.000 Millions (PWS - Rs 203.000 Millions and ANA Rs 21.000 Millions), Two Orders from HPCL - Mittal Energy (HMEL) of Rs 137.000 Millions ( ANA Div) and Rs 168.000 Millions (RMT Div), Megha Engineers and Infrastructures - Rs 51.000 Millions (RMT Rs 38.000 Millions and MMI Rs 13.000 Millions) ; POSCO Engg Rs 43.000 Millions ( RFD Rs 33.000 Millions and RMT Rs 10.000 Millions), IGL Rs 39.000 Millions (MMI Rs 32.000 Millions and Regs Rs 7.000 Millions); 2 orders from Honeywell Automation - Rs 35.000 Millions and Rs 32.000 Millions (both for RMT Div): Vedanta - Rs 29.000 Millions (RFD Rs 23.000 Millions and RMT Rs 6.000 Millions) etc.

 

The company delivered yet another year of good performance by achieving Income growth of 18% over last year. Major orders executed during the year include HMEL (RMT Div) Rs 130mn. ABB Rs 42mn (PSS Div), Aditya Birla Nuvo Rs.25mn (PSS Div), various Orders from IOCL Rs 138mn, L and T Rs 150mn BHEL - Rs 40mn etc.

 

Profit before tax to Total Income % age improved from 6.07% in the last year to 7.9% in the current year mainly on account of increase in RMT Division's Sales (which has maximum contribution %age) constituting 48% of total sales as against 42% in the previous year and Exchange Rate gain of Rs 79.000 Millions during the year.

 

Inventories increased by 15% (from Rs 335.000 Millions to Rs 386.000 Millions) compared to the previous year. Raw Material inventory increased mainly on account of RMT inventory going up in line with growth in business, WIP increased on account of NTPC, Driplex, HPCL and Honeywell orders lined up for April-May dispatches. As against this, finished goods inventory dropped as a result of constant monitoring and driving collection against cash sales. Unbilled revenue relating to sales recognized on percentage of completion (POC) method of accounting has gone up from Rs 71m to Rs 198mn due to increase in large project activity. Sundry Debtors level has remained at same level as last year i.e. Rs 900.000 Millions due to better monitoring of Credit and Payment terms and rigorous collection follow ups. The Company has been trying to work on improving execution process and increase involvement of operational and sales force as well to outsource collection activities in the pursuit of improving working capital levels.

 

The company expects to maintain its growth trajectory during the current year (20010-11) also with expectation of continued growth in the key Infrastructure sectors like Oil and Natural Gas, Power, Metals etc.

 

 

FORM 8 :

 

Name of the company

EMERSON PROCESS MANAGEMENT (INDIA) PRIVATE LIMITED

Presented By

Mr. Pradipta Sen, Director

1) Date and description of instrument creating the change

Loan Agreement dated 31st May, 2004

2) Amount secured by the charge/amount owing on the securities of charge

Rs.0.522 million

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Motor Vehicle For Ikon 1.3

4) Gist of the terms and conditions and extent and operation of the charge.

a) The charge shall operate during the currency of the loan scheduled to be repaid in 48 monthly installments.

b) Monthly installment of Rs.0.013 million

c) Vehicle to be insured and maintained in good condition.

5) Name and Address and description of the person entitled to the charge.

Ford Credit Kotak Mahindra Limited, 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai – 400 021, Maharashtra, India – Company

6) Date  and brief description of instrument modifying the charge

NA

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

NA

 

 

FIXED ASSETS:

 

  • Freehold Land
  • Buildings
  • Plant and Machinery
  • Computers
  • Furniture, Electrical Fittings and Office Equipment
  • Vehicles
  • Leased Vehicles
  • Leasehold Improvements 

 

 


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

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

6

--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

 

65

 

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.