MIRA
INFORM REPORT
|
Report Date : |
28.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
GALA PRECISION ENGINEERING PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
A-59, Road No. 10, Wagle Industrial Estate, Thane-400604, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
23.02.2009 |
|
|
|
|
Com. Reg. No.: |
11-190522 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.32.379
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U29268MH2009PTC190522 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of high technology precision Disc Springs. |
|
|
|
|
No. of Employees
: |
Not Available |
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 670000 |
|
|
|
|
Status : |
New Company |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a relatively new company and establishing itself gradually.
Trade relations are reported as fair. Business is active. Payments are reported
to be slow but correct. The company can be considered for business dealings with some
cautions. |
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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered / Corporate Office : |
A-59, Road No. 10, Wagle Industrial Estate, Thane-400604, |
|
Tel. No.: |
91-22-25821321/25800252/41410404/25821232/25820252 |
|
Fax No.: |
91-22-25820771 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Plot No. 295, Village Vadavali at Post Met, |
|
Tel. No.: |
91-2526-220155 |
|
Fax No.: |
91-2526-220577 |
|
|
|
|
Factory 2 : |
No. 4 Workshop, |
|
|
|
|
|
Niederlassung Deutschland, 1st Floor, Lyoner Strasse 14,
60528 Frankfurt am Main |
|
Tel. No.: |
+49 69 66 55 41 58 |
|
Fax No.: |
+49 69 66 55 41 59 |
|
E-Mail : |
DIRECTORS
As on 30.09.2010
|
Name : |
Mrs. Taramati V. Gala |
|
Designation : |
Director |
|
Address : |
161/162, Tarangan I, Shahid Mangal |
|
Date of Birth/Age : |
02.07.1944 |
|
Date of Appointment : |
23.02.2009 |
|
|
|
|
Name : |
Mr. Vikram R. Nirula |
|
Designation : |
Director |
|
Address : |
704, Gypsy Rose, Shastri Nagar, Ajmera Complex, Andheri (West),
Mumbai-400053, |
|
Date of Birth/Age : |
28.08.1972 |
|
Date of Appointment : |
23.02.2009 |
|
Date of Ceasing: |
16.09.2009 |
|
|
|
|
Name : |
Mr. Kirit V. Gala |
|
Designation : |
Managing Director |
|
Address : |
161/162, Tarangan I, Shahid Mangal |
|
Date of Birth/Age : |
25.08.1962 |
|
Date of Appointment : |
01.06.2009 |
|
|
|
|
Name : |
Mr. Vishanji H. Gala |
|
Designation : |
Director |
|
Address : |
161/162, Tarangan I, Shahid Mangal |
|
Date of Birth/Age : |
28.11.1936 |
|
Date of Appointment : |
01.06.2009 |
|
|
|
|
Name : |
Mr. Balkishan Shyamsunder Jalan |
|
Designation : |
Director |
|
Address : |
Shankar Charya, Marg Powai, Mumbai-100076, |
|
Date of Birth/Age : |
23.08.1970 |
|
Date of Appointment : |
01.11.2009 |
|
|
|
|
Name : |
Mr. Satish Kotwanj |
|
Designation : |
Director |
|
Address : |
C-5/502, Madhav Srishti, Kahdak Pada, Kalyan (West), Thane-421301, |
|
Date of Birth/Age : |
17.07.1973 |
|
Date of Appointment : |
01.06.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
No. of
Preferences Shares |
No. of Equity
Shares |
|
Tarumati Vishanji
Gala |
-- |
257000 |
|
Vikram Nirula |
-- |
4000 |
|
Vishanji Gala |
-- |
411200 |
|
Kirit Vishanji Gala |
-- |
474800 |
|
Vishanji Gala
(HUF) |
-- |
50000 |
|
Alpa Kiran Chheda |
-- |
50000 |
|
Nayna Gala |
-- |
50000 |
|
Rumie Kirit Gala |
-- |
183200 |
|
Kirit Gala (HUF) |
-- |
53400 |
|
Vishanji H Gala (HUF) |
-- |
77800 |
|
Smeet K. Gala (Guardian Kirit Gala) |
-- |
8000 |
|
Saloni Gala (Guardian Kirit Gala) |
-- |
8000 |
|
Bhavik B Mehta |
-- |
2000 |
|
Dhiraj N Shah jointly with Hemlata D. Shah |
-- |
10000 |
|
Hemlata D. Shah jointly with Dhiraj N. Shah |
-- |
9400 |
|
Urmil D. Shah jointly with Dhiraj N Shah |
-- |
6400 |
|
Kiran R Chheda jointly with Alpa K. Chheda |
-- |
4500 |
|
Keshavlal G Soni jointly with Manjulaben K Soni |
-- |
5000 |
|
Rashmikant B Shah jointly with Vandana Shah |
-- |
1000 |
|
Shailesh B. Shah jointly with Priti S. Shah |
-- |
1000 |
|
Vishanji Bhavanji Nagda |
-- |
4000 |
|
Rita Samir Shah |
-- |
5000 |
|
Samir Hirji Shah |
-- |
5000 |
|
Pradeep Vallabhji Gada jointly with Veena P. Gala |
-- |
2000 |
|
Sakarben V. Gada jointly with Mayur V. Gada |
-- |
3000 |
|
Madhu V Ashar jointly with Manisha Ashar |
-- |
21200 |
|
Nirmala Laxmichand Gada |
-- |
1000 |
|
Prabha T. Gala jointly with Talakshi Hiraji Gala |
-- |
2000 |
|
Tokershi M Gosar jointly with Jayshree S Gosar and Sudhir T Gosar |
|
6000 |
|
Linesh Hirachand Gala |
-- |
1000 |
|
Panbai H.Shah jointly with Ajit Shah |
-- |
2000 |
|
Tarachand R.Gosar |
-- |
2000 |
|
Paresh D. Gala |
-- |
2000 |
|
Varsha A. Gosar |
-- |
1000 |
|
Usha M. Gada |
-- |
1000 |
|
Gita P. Nagda |
-- |
2000 |
|
Meeta K.Nagda jointly with Kirit D.Nagda |
-- |
2000 |
|
Nemchand D. Nagda jointly with Rahul Nemchand Nagda |
-- |
2000 |
|
Uday P.Pasad jointly with Vandana U.Pasad |
-- |
5000 |
|
Dipen S.Bheda jointly with Khushali D Bheda |
-- |
2000 |
|
India Value Fund Trustee Company Limited, |
1500000 |
-- |
|
|
|
|
|
Total |
1500000 |
1737900 |
As on 30.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Directors
or relatives of directors |
|
93.64 |
|
Other
top fifty shareholders |
|
6.36 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of high technology precision Disc Springs. |
||||||
|
|
|
||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Installed
Capacity |
Actual
Production In
Nos. |
|
Vibrator Machines and Parts |
3500 |
1394 |
|
Disc Springs and all types of springs * |
180000000 |
59053344 |
Note:
- Licensed capacity has not been shown, being not applicable.
- Installed capacity is as certified by the management and has been accepted by the auditors without verification, being a technical matter.
- Production quantities exclude quantity used internally as intermediate components.
- *Production above includes (13,248,947 Nos) finished goods taken over from GPTPL under BTA.
GENERAL INFORMATION
|
Bankers : |
State Bank of |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR and Company Chartered Accountant |
|
Address : |
KPMG House, Kamla Mills Compound, 448, Senapati Bapat Marg, Lower Parel,
Mumbai-400013, Maharashtra, India |
|
|
|
|
Associates/Subsidiaries : |
Gala Precision Components ( |
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 |
|
7000000 |
Preferences Shares |
Rs.10/- each |
Rs.70.000 Millions |
|
|
Total |
|
Rs.180.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1737900 |
Equity Shares |
Rs.10/- each |
Rs.17.379
Millions |
|
1500000 |
Preferences Shares |
Rs.10/- each |
Rs.15.000
Millions |
|
|
Total |
|
Rs.32.379 Millions |
Notes:
Of the above, 1,500,000 (31 March 2009: Nil) 6% Non-cumulative compulsorily convertible preference shares (CCPS) of Rs. 10 each, fully paid-up are held by India Value Fund Trustee Company Private Limited. The CCPS are convertible after the term of seven years from the date of issue to 38% of equity share capital post conversion without any downward protection. (Subsequent to the year end, the above CCPS has been transferred by India Value Fund Trustee Company Private Limited to Gala Springs Private Limited)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
32.379 |
0.100 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
152.218 |
0.000 |
|
|
4] (Accumulated Losses) |
|
(16.572) |
0.000 |
|
|
NETWORTH |
|
168.025 |
0.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
176.532 |
0.000 |
|
|
2] Unsecured Loans |
|
20.000 |
0.000 |
|
|
TOTAL BORROWING |
|
196.532 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
364.557 |
0.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
167.913 |
0.000 |
|
|
Capital work-in-progress |
|
11.598 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
19.481 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
77.100
|
0.000 |
|
|
Sundry Debtors |
|
123.360
|
0.000 |
|
|
Cash & Bank Balances |
|
2.802
|
0.071 |
|
|
Other Current Assets |
|
0.000
|
0.000 |
|
|
Loans & Advances |
|
24.885
|
0.000 |
|
Total
Current Assets |
|
228.147
|
0.071 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
33.887
|
0.000 |
|
|
Other Current Liabilities |
|
17.142
|
0.003 |
|
|
Provisions |
|
11.553
|
0.000 |
|
Total
Current Liabilities |
|
62.582
|
0.003 |
|
|
Net Current Assets |
|
165.565
|
0.068 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.032 |
|
|
|
|
|
|
|
|
TOTAL |
|
364.557 |
0.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
231.148 |
0.000 |
|
|
|
Other Income |
|
15.609 |
0.000 |
|
|
|
TOTAL |
|
246.757 |
0.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
|
263.330 |
0.032 |
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL |
|
263.330 |
0.032 |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
|
(16.573) |
(0.032) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
|
(16.573) |
(0.032) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
|
(16.573) |
(0.032) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
57.003 |
0.000 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
22.931 |
0.000 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
(23.17) |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
|
(6.72) |
0.00 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
(7.17) |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
(4.18) |
(45.07) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
(0.10) |
(0.32) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.54 |
0.03 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
3.65 |
23.67 |
LOCAL AGENCY FURTHER INFORMATION
Background
Gala Precision Engineering
Private Limited (‘the Company’) was incorporated in 2009.The Company purchased
disc spring and mass finishing solution business from Gala Precision Technology
Private Limited under Business Transfer Agreement dated 26 May 2009 with effect
from 1 June 2009. The Company has its production unit at Wada in Thane
District,
Purchase of
Business:
The Company acquired business of Disc Spring and Washers and Mass Finishing
Solution (referred to as ‘non CV business’) vide a Business Transfer Agreement
(BTA) dated 26 May 2009 and amendment dated 30 March 2010 with Gala Precision
Technology Private Limited (GPTPL). The consideration for sale of non-CV
business was agreed at Rs 374.8 million
During the year 2009-10, the operations of the company started from 1st
June 2009 on take over of Disc spring and Mass Finishing business from GPTPL.
And during this period the company have achieved gross turnover of Rs. 246.757
millions The above turnover excludes Inter-Unit Sale. There is no impact on
profit and loss as the Inter-unit sale took place at Cost and accordingly
matching cost was excluded from expenses side. During this period they have achieved Exports Sales of Rs 58.869
millions.
As per Auditors Report of 2009-2010, the loss is of Rs 16.573 millions.
But, they would like to justify the members of our company why the
profitability of 2009-10 have been impacted. The profitability of the previous
year was impacted due to many reasons like World wide recession, Separation of
CV and Non CV business between GPTPL and GPEPL etc
Due to recession the Export Sales have dropped drastically against the
targets set of Rs 105.000 millions to Rs
58.869 millions in the year 2009-2010,
in Disc spring division and this has severally impacted our profitability.
The factors which
impacted the profits of 2009-2010 are:-
1) Strategic
Decision:-
Due to strategic decision of separation of business between CV and Non
CV, some of the expenses were accounted in the year 2010 financials though they
were having no direct relationship with the previous year’s business (one time
in nature) like Incentives to employees, Stamp duty and ROC fees, ETP expenses,
Conveyance expenses, etc this all amounted to Rs 8.000 millions.
2) Goods in
Transit:-
Adopting Accounting standard - Revenue recognition, the auditors has
reversed the Sales of Rs 15.800 millions as closing Goods in Transit impacting
the profits by Rs 3.700 millions. The effect would have neutralized if there
would have been opening Goods in transit. (As 09-10 being the first year of
operation)
3) Exchange Loss:-
The exchange loss on re-instatement of Debtors and creditors have
impacted profits by Rs 4.100 millions. The effect would have been less or
neutralized if there would have opening Exchange Gain or loss (as 09-10 being
the first year of operations)
4) Loss due to
Fire:-
The Goods returned from Export customer worth Rs 1.400 millions were
lying in port. One day before the receipt by our company fire took place in
port and entire stock got damaged. Though they had insurance cover but the time
frame was short to recover the loss.
5) Hiring of KPO
for New Business Development:-
As a strategic decision our management has decided to identify new
products and for which they have engaged Adventity - KPO as their agent and for
which they have spent Rs 1.000 millions and the same have also impacted our Profit
and loss account as it does not pertain
to the current business. If all the above 5 factors are not considered in
2009-10 than the company would have profit of Rs 1.627 millions.
The 100% WOS in china which was earlier part of Gala Precision
Technology private Limited and the same have been taken over by us as a part of
BTA and applications to RBI is made for transfer. The 100% WOS in
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
10165862 |
|
Corporate
identity number of the company |
U29268MH2009PTC190522 |
|
Name of the
company |
Gala Precision
Engineering Private Limited |
|
Address of the registered
office or of the principal place of
business in |
A-59, Road No. 10, Wagle Industrial Estate, Thane-400604, |
|
Type of charge |
Immovable
Property |
|
Particular of
charge holder |
State Bank of |
|
Email |
|
|
Nature of description
of the instrument creating or modifying the charge |
No
instrument. Memorandum of deposit for
creation of charge for term loan/ overall limit. |
|
Date of
instrument Creating the charge |
19.03.2010 |
|
Amount secured by
the charge |
Rs.194.200
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As Per Sanction
Terms Terms of
Repayment As Per Sanction
Terms Margin As Per Sanction
Terms |
|
Short particulars
of the property charged |
I)
All
present and future goods, book debts and all other movable assets including
documents of title to goods, outstanding moneys, receivables, claims,
invoices, documents, contracts, engagements, II)
Securities,
investments, rights and present and all future machinery belonging to or in
possession or under control of the company wherever lying, stored and kept
and whether in possession of the III)
Company
or of the bank or any third party (including all such goods and other assets
in course of shipment/ transit/ delivery) |
|
Particulars of
the present modification |
Now by the
present modification Dt.19.3.2010 the company offered security by way of an
equitable mortgage by deposit of title deeds over the immovable properties to
secure its credit facilities of Rs.194.200 millions. (the details of
immovable properties |
Fixed Assets:
- Development
Cost
- Bore Well
- Plant and
Machinery
- Electrical
Installation
- Computers
- Vehicles
- Office
Equipments
- Dies and
Moulds
AS PER WEBSITE
DETAILS
OVERVIEW:
Subject is a ISO/TS 16949:2009 certified organization with engineering competency at our crux.
Three decades of hardcore expertise forms their backbone in
designing and manufacturing of high technology precision Disc Springs. Being
The company also designs and manufactures mass finishing systems for a wide variety of finishing applications on the automotive and general engineering horizons.
They are working towards Business Excellence while catering to the needs of some of the most advanced countries in niche segments.
Gala has carved its name deep onto the international scene
over the last 10 years, with clientele spanning across continents from Asia to
Europe and
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.45.21 |
|
|
1 |
Rs.74.30 |
|
Euro |
1 |
Rs.64.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.