MIRA INFORM REPORT

 

 

Report Date :

24.05.2011

 

IDENTIFICATION DETAILS

 

Name :

GUJARAT METAL CAST INDUSTRIES LIMITED

 

 

Formerly Known As :

PATSAN HYGIENE INDUSTRIES PRIVATE LIMITED

 

 

Registered Office :

Near Haripura Bus Stand, Jarod-Samlaya Road, Village Garadhiya, Savli Vadodara – 391520, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

11.03.1986

 

 

Com. Reg. No.:

04-008536

 

 

Paid-up Capital :

Rs. 69.481 Millions

 

 

CIN No.:

[Company Identification No.]

L27100GJ1986PLC008536

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BRDG00273A

 

 

PAN No.:

[Permanent Account No.]

AAACG83433G

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of foam foundry producing aluminum, malleable, ductile and cast iron casting

 

 

No. of Employees :

Information not divulged by management

 

 

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. There appears some 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 DENIED BY

 

Name :

Mr. Chandrakant R. Patel

Designation :

Director

Contact No.:

91-9228002218

Date :

23.05.2011

 

 

LOCATIONS

 

Registered Office :

Near Haripura Bus Stand, Jarod-Samlaya Road, Village Garadhiya, Savli Vadodara – 391520, Gujarat, India

Tel. No.:

91-2667-662200/251358/251359

Fax No.:

91-2667-215603

E-Mail :

p.kamodia@gmcil.com

casting@gmail.com

Website :

www.gmcil.com

 

 

DIRECTORS

 

As On 13.08.2010

 

Name :

Mr. Shirishkumar Natwarlal Bakshi

Designation :

Director

Address :

43, Suvarnapuri, Jetalpur Road, Vadodara – 390007, Gujarat, India

Date of Birth/Age :

07.07.1939

Date of Appointment :

23.07.2007

DIN No.:

01085971

 

 

Name :

Mr. Anil Ramanbhai Patel

Designation :

Director

Address :

Plot No. 8, R.S. No. 79, Near Narmada Canal, Sevasi, Vadodara – 391011, Gujarat, India

Date of Birth/Age :

23.12.1951

Date of Appointment :

23.07.2007

DIN No.:

00228658

 

 

Name :

Mr. Chandrakant Revandas patel

Designation :

Managing Director

Address :

15, Abhishek Colony, Patel Race Course Circle, Vadodara - 390 007, Gujarat, India

Date of Birth/Age :

28.07.1946

Date of Appointment :

11.03.1986

DIN No.:

00315068

 

 

Name :

Mr. Manubhai Kashiram Contractor

Designation :

Director

Address :

67, Vishwas Colony, Alkapuri, Vadodara – 390007, Gujarat, India

Date of Birth/Age :

02.01.1939

Date of Appointment :

25.12.2003

DIN No.:

00356735

 

 

Name :

Mr. Tapan Chandrakant Patel

Designation :

Director

Address :

15, Abhishek Colony, Race Course Circle, Vadodara – 390007, Gujarat, India

Date of Birth/Age :

18.03.1976

Date of Appointment :

29.07.2006

DIN No.:

00753067

 

 

Name :

Mr. Shirish Chandubah Amin

Designation :

Director

Address :

F3/1, Atul Colony, Valsad – 396020, Gujarat, India

Date of Birth/Age :

28.05.1940

Date of Appointment :

29.07.2006

DIN No.:

00871017

 

 

Name :

Mr. Prabir Chandrakant Patel

Designation :

Director

Address :

Ganga Sadan, 15, Abhishek Colony, Race Course Circle, Vadodara – 390007, Gujarat, India

Date of Birth/Age :

09.02.1974

Date of Appointment :

01.04.2007

DIN No.:

01506895

 

 

KEY EXECUTIVES

 

Name :

Mr. Pankaj N. Kamodia

Designation :

General Manager (Commercial)

 

 

Name :

Mr. Pradeep Sangole

Designation :

General Manager (QMS and OA)

 

 

Name :

Mr. S. M. Oza

Designation :

Sr. Manger (Production)

 

 

Name :

Mr. G. K. Suthar

Designation :

Sr. Manager (P and A)

 

 

Name :

Mr. Sundeep Rahulkar

Designation :

Manager Accounts

 

 

Name :

Mr. D. P. Bhavsar

Designation :

Sr. Manager (Purchase)

 

 

Name :

Mr. Thakorbhai Chudgar

Designation :

Manager (Engineering)

 

 

Name :

Mr. Bharat H. Gohil

Designation :

Manager (Stores)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As On 13.08.2010

 

Names of Shareholders

 

No. of Shares

Chandrakant Revandas Patel

 

1338942

Manubhai Kashiram Contractor

 

7700

Tapan Chandrakant Patel

 

892628

Prabir Chandrakant Patel

 

892628

 

As On 13.08.2010

 

Category

Percentage

Bodies corporate

5.84

Directors or relatives of Directors

71.32

Other top fifty shareholders

22.84

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of foam foundry producing aluminum, malleable, ductile and cast iron casting

 

 

Products :

Item Code No.

Product Description

73259910

Grey Iron Castings, Malleable Iron Castings and SGI Castings, Falling under ITC board description other cast articles of Iron and Steel (Ferrous Castings) Aluminum castings (non ferrous castings)

84859000

Shaft assemblies falling under ITC broad description mechanical appliances and parts

 

PRODUCTION STATUS (As On 31.03.2010)

 

Particulars

 

 

 

Installed Capacity

Malleable cast iron castings

 

 

 

6000

Grey cast iron casting

 

 

 

(M.T.P.A)

S.G. Iron casting aluminum casting

 

 

 

 

Shaft assemblies

 

 

 

18000

 

 

 

 

(Nos. P.A)

 

For Production of Castings:

 

Items

2009-10 (Qty. Kgs)

Pig iron

12

M.S./Silicon Scarp

2123218

Slurry/Styromol

83648

Expandable Polystyrene

26574

Hot melt adhesive

1464

Ferro silicon

42915

Ferro manganese

21012

Carbon coke

28276

Bisumuth

111

Ferro silicon magnesium

5035

Ferro boron

26

Aluminum ingot

40088

Modelloys

0

Magnesium metal ingot

0

Other misc. R.M

--

Total

--

Add: Packing Material

--

Add: Freight and Octroi Inward

--

Total

--

 

 

GENERAL INFORMATION

 

No. of Employees :

Information not divulged by management

 

 

Bankers :
  • State Bank of Indore, Race Course Circle, Vadodara - 390005, Gujarat, India

 

 

Facilities :

Secured Loans

31.03.2010 (Rs. In Millions)

31.03.2009 (Rs. In Millions)

a). From State Bank of lndore

 

 

i) Term Loan I

0.600

2.520

ii) Term Loan II

12.323

16.431

iii) Term Loan Ill

28.571

0.000

iii) Funded Interest Term Loan

0.583

1.171

iv) Working Capital Term Loan

0.900

2.100

v) Interest Payable on Term Loan

0.542

0.257

vi) Interest Payable on WCTL (All of above Secured against Hypothecation of Plant and Machinery and

Equitable Mortgage of Immovable Properties  Personal Guarantee of Directors)

0.011

0.026

vii) Corporate Loan

0.000

0.001

viii) lnterest Payable on Corporate Loan

(secured against hypothecation of current assets of the company)

Out of above loans Rs. 12.144 millions are payable during next 12 months. (previous year Rs. 8.105 millions)

0.000

0.006

b). From State Bank of lndore

 

 

ix) Cash Credit A/C

(secured against hypothecation of stock in trade and debtors and personal guarantee of directors)

40.520

35.670

c) From State Bank of Indore

 

 

i) From State Bank of Indore – FUBD

4.874

8.310

ii) From State Bank of Indore – UBD

(secured against hypothecation of stock in trade and debtors and personal guarantee of directors)

0.000

8.957

c) Reliance Capital Limited

(secured against personal property of Director)

18.584

19.508

d) Sales tax deferment

 

 

C.S.T

5.623

8.433

Total

113.130

103.389

 

 

Unsecured Loans

31.03.2010 (Rs. In Millions)

31.03.2009 (Rs. In Millions)

From Directors

34.612

34.225

From Shareholders and Relatives

0.000

0.873

Total

34.612

35.098

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

J.R.S. Patel and Company

Chartered Accountant

Address :

106, Anurag Commercial Centre, R.C. Dutt Road, Vadodara – 390007, Gujarat, India

Pan No.:

AABFJ9954F

 

 

CAPITAL STRUCTURE

 

As On 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

11000000

Equity Shares

Rs. 10/- each

Rs. 110.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7000760

Equity Shares

Rs. 10/- each

Rs. 70.008 Millions

Less:

Allotment Money in Arrears

 

Rs. 0.527 Millions

 

Total

 

Rs. 69.481 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

69.481

69.481

69.481

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

31.588

31.588

32.132

4] (Accumulated Losses)

(41.434)

(56.209)

(58.602)

NETWORTH

59.635

44.860

43.011

LOAN FUNDS

 

 

 

1] Secured Loans

113.130

103.389

84.669

2] Unsecured Loans

34.612

35.098

24.664

TOTAL BORROWING

147.742

138.487

109.333

DEFERRED TAX LIABILITIES

9.897

12.617

14.878

 

 

 

 

TOTAL

217.274

195.964

167.222

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

81.124

84.474

88.724

Capital work-in-progress

46.943

45.763

1.181

 

 

 

 

INVESTMENT

0.072

0.072

0.076

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
34.777

26.441

25.048

 

Sundry Debtors
57.228

56.011

51.695

 

Cash & Bank Balances
3.989

2.677

6.698

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
36.254

29.993

41.011

Total Current Assets
132.248

115.122

124.452

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

23.008

24.659

26.655

 

Other Current Liabilities
6.569

7.808

7.698

 

Provisions
13.828

17.436

13.440

Total Current Liabilities
43.405

49.903

47.793

Net Current Assets
88.844

65.219

76.659

 

 

 

 

MISCELLANEOUS EXPENSES

0.0291

0.436

0.582

 

 

 

 

TOTAL

217.274

195.964

167.222

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

291.056

247.254

284.533

 

 

Other Income

1.978

2.583

6.082

 

 

TOTAL                                     (A)

293.034

249.837

290.615

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

(Increase)/Decrease in Stocks

(4.637)

(3.283)

0.380

 

 

Raw materials, etc. consumed

115.032

104.884

126.304

 

 

Other manufacturing expenses

93.211

74.966

78.041

 

 

Payment to and provision for employees

25.946

25.916

23.669

 

 

Administrative and other overheads

14.903

14.213

19.522

 

 

Forex Loss/ (Gain)

0.439

3.717

0.924

 

 

Prior years expenses

0.053

(0.094)

0.034

 

 

TOTAL                                     (B)

244.947

220.319

248.874

 

 

 

 

 

Less

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

48.087

29.518

41.741

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

10.218

9.108

10.965

 

 

 

 

 

 

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

37.869

20.410

30.776

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

17.717

16.709

14.120

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

20.152

3.701

16.656

 

 

 

 

 

Less

TAX                                                                  (I)

5.377

1.308

5.708

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

14.775

2.393

10.948

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(56.209)

(58.602)

(69.550)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(41.434)

(56.209)

(58.602)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

31.689

60.302

 

 

Other

0.662

3.025

 

 

TOTAL EARNINGS

32.351

63.327

 

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

9.237

5.197

 

 

 

Components and Spares

0.179

0.093

 

 

 

Capital Goods

0.894

20.834

 

 

TOTAL IMPORTS

10.310

26.124

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

- Basic

2.13

0.34

1.58

 

- Diluted

2.13

0.34

1.58

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
5.04

0.96

3.77

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
6.92

1.50

5.85

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
9.44

1.85

7.81

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.34

0.08

0.39

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.21

4.20

3.65

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.05

2.31

2.60

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The Details of sundry creditors:

Rs. In Millions

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry creditors for Goods and Expenses

 

 

 

a) Creditors – MSMED

0.065

0.072

25.891

b) Creditors – Others

22.642

24.403

 

Sundry Creditors for Capital Goods

0.301

0.184

0.764

Total

23.008

24.659

26.655

 

Note:

The Registered Office of the company has been shifted from 702 Regent Towers Opposite Ayakarbhavan Race Course Circle, Vadodara – 390007, Gujarat, India to the present address w.e.f 25.09.2006.

 

FINANCIAL AND OPERATIONAL PERFORMANCE:

During the year, the sales turnover and other income of the company increased from Rs. 253.120 Millions in the previous year to Rs.297.671 Millions and were increased by 17.60% over the previous year.

 

The company's exports decreased from Rs.60.302 Millions in the previous year to Rs.31.689 Millions during the year under review and were lowered by 47.45% over the previous year. The company's profit before tax for the year increased from Rs.3.608 Millions in the previous to Rs.20.204 Millions and was increased by 459.98% over the previous year. Because of the world wide recession, company's exports have reduced by 47.45%, however company's total sales turnover increased because of the substantial increase in domestic sales turnover.

 

The company has aggressively moved in the domestic market and hopes to achieve good domestic business during the current fiscal. Moreover the company is taking necessary steps to increase the export business and hopes to make good exports during the current fiscal.

 

 

Contingent Liabilities not provided for:

 

a. Guarantee of Rs.0.080 Million given by company's Banker on behalf of the company to the supplier.

b. Disputed Income Tax demand of Rs.0.420 Million for A.Y. 2000-01 (Previous year Rs. 0.420 Million) for which the company was in appeal, has been restored back to the file of CIT (Appeal)-I Baroda pursuant to Order of the lncome Tax Appellate Tribunal, Ahmedabad. Out of this amount, lncome tax Department has fully adjusted an amount of Rs.0.420 Million against refund receivable as under:

 

Assessment year

Refund Amount (Rs. In Millions)

1994-95

0.061

2003-04

0.034

2005-06

0.002

2007-08

0.323

Total

0.420

 

 

There is disputed lncome Tax demand of Rs. 12.302 Millions f0rA.Y. 2007-08 for which the matter is pending to the CIT (Appeals) 1, Baroda. The said demand has arisen pursuant to Assessment Order passed uls 143(3) of the lncome Tax Act, 1961 for the year under consideration.

 

c. Company has filed an appeal before the Employees' Provident Funds Appellate Tribunal, New Delhi against the order of Regional Provident Fund Commissioner, Baroda for recovery of damages of Rs.0.434 Million. The appeal was dismissed by the Hon'ble Tribunal. Against the Order of the Appellate Tribunal, the Company filled an appeal before the Central Board of Trustees, Employees Provident Fund Organisation at New Delhi. As the appeal was filled before Central Board of Trustees, Employees Provident Fund Organization at New Delhi, the hearing was held on 16.04.2010 before Employee Provident Fund Appellate Tribunal and the appeal was dismissed vide order

dated 20.04.2010.Against the said Order, the company is into the process of lodging further appeal to the Hon’ble High Court of Gujarat.

 

 

Form 8

 

Corporate identity number of the company

L27100GJ1986PLC008536

Name of the company

GUJARAT METAL CAST INDUSTRIES LIMITED

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

Nr. Haripura Bus Stand,  Jarod-Samlaya Road, Savli Vadodara, Village Garadhiya – 391520, Gujarat, India

This form is for

Modification of charge

Type of charge

Movable Property

Particular of charge holder

Name :

State Bank of Indore,

Address :

Race Course Circle, Vadodara - 390005, Gujarat, India

Email :

sbn3158@sbindore.co.in

Nature of instrument creating charge

Form C.5 - Letter Regarding the Grant of Individual Limits within the Overall Limit Dated 01.07.2010.

Date of instrument Creating the charge

01.07.2010

Amount secured by the charge

Rs. 160.653 Millions

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

Rate of Interest - Cash Credit (Hyp.), Term Loan- I, WCTL, FITL; The Interest is 5.25% ,Cash Credit (EPC/PSE) And UBD; The Interest Rate Is 2%, Term Loan Ii And Term Loan Iii; The Interest Rate Is 6.25% Above Base Rate.

 

Terms of Repayment – For cash credit - on demand.

For term loans - as per annexure - I forming part of form C.5.

 

Margin - 25 % On Raw Materials

25% On Stock In Process

25% On Finished Goods

15 % On EPC/PSC

40% On Receivables

37.5% On Land And Building/Plant And Machinery

15% On LC/LG

10% On UBD.

 

Extent and Operation of the charge - The Charge Is Modified To Secure Various Modified Individual Limits Granted By State Bank Of Indore Within Overall Limit Of Rs. 160.653 millions More Specifically Described In The Form C-5 Executed (Letter Regarding The Grant Of Individual Limits Within The Overall Limit) On 01.07.2010.

Particulars of the property charged

Hypothecation Of Raw Materials, Stock In Process, Finished Goods, Stores And Spares, Book Debts And Plant And Machinery Put And Installed In Pattern Shop, Utility, Sand Plant, Melting Shop, Felting Shop, Heat Treatment, FMC And Electrical Sections And General and Lab Equipments Etc.

Particulars of the present modification

The Charge Was Created On 05.03.2009 By Hypothication Of Movable Properties With The Bank Is Now Modified On 01.07.2010 By Form C-5 (Letter Regarding The Grant Of Individual Limits Within The Overall Limit) To Secure Various Modified Individual Limits Within The Overall Limits Of Rs. 160.653 millions

 

Fixed Assets:

  • Land-Savali
  • Building
  • Staff quarter
  • Plant and machinery
  • Furniture and fixtures
  • Lab. Equipment
  • Factory equipment
  • Computer
  • Motor car / vehicle
  • Dies, tools and pattern

 

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.45.28

UK Pound

1

Rs.73.30

Euro

1

Rs.63.61

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--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.