MIRA INFORM REPORT

 

 

Report Date :

11.04.2012

 

IDENTIFICATION DETAILS

 

Name :

SHREENIWAS COTTON MILLS LIMITED

 

 

Registered Office :

Shreeniwas House, Hazarimal Somani Marg, Fort, Mumbai 400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

05.02.1935

 

 

Com. Reg. No.:

002249

 

 

Capital Investment / Paid-up Capital :

Rs. 99.002 millions

 

 

CIN No.:

[Company Identification No.]

U70104MH1935PLC002249

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS69897C

 

 

Legal Form :

A Closely Held Public Limited Liability Company 

 

 

Line of Business :

Company Operates Mainly in Development of Luxury Residences.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 5503588

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears huge 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 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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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 :

Shreeniwas House, Hazarimal Somani Marg, Fort, Mumbai 400001, Maharashtra, India 

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

anshu.agarwal@lodhagroup.com

 

 

DIRECTORS

 

AS ON 30.09.2011

 

Name :

Mr. Venkateshwer Somani

Designation :

Director

Date of Birth/Age :

22.02.1928

Date of Appointment :

10.10.1980

 

 

Name :

Mr. Mangal Prabhat Lodha

Designation :

Director

Date of Birth/Age :

18.12.1955

Date of Appointment :

05.08.2009

 

 

Name :

Mr. Abhisheck Lodha

Designation :

Director

Date of Birth/Age :

01.11.1979

Date of Appointment :

04.09.2009

 

 

Name :

Mr. Rajendra Lodha

Designation :

Director

Date of Birth/Age :

10.06.1966

Date of Appointment :

02.08.2010

 

 

Name :

Mr. Mangesh Puranik

Designation :

Director

Date of Birth/Age :

18.03.1970

Date of Appointment :

02.08.2010

 

 

Name :

Mr. Deepak Lodha

Designation :

Director

Date of Birth/Age :

25.02.1963

Date of Appointment :

02.08.2010

 

 

Name :

Mr. Hariharan Jayakumar

Designation :

Director

Date of Birth/Age :

06.04.1949

Date of Appointment :

28.09.2010

 

 

Name :

Mr. Rajeev Kumar

Designation :

Director

Date of Birth/Age :

18.02.1980

Date of Appointment :

11.05.2011

 

 

Name :

Mr. Naresh Nadkarni

Designation :

Director

Date of Birth/Age :

14.07.1962

Date of Appointment :

28.09.2010

 

 

Name :

Mr. Keyur Shah

Designation :

Director

Date of Birth/Age :

11.01.1971

Date of Appointment :

28.09.2010

 

 

Name :

Mr. Sandeep Saxena

Designation :

Director

Date of Birth/Age :

25.12.1964

Date of Appointment :

26.10.2010

 

 

KEY EXECUTIVES

 

Name :

Mr. Surendra Shah

Designation :

Manager

Date of Birth/Age :

02.02.1946

Date of Appointment :

19.09.2009

 

 

Name :

Ms. Anshu Agarwal

Designation :

Company Secretary

Date of Birth/Age :

01.11.1976

Date of Appointment :

25.10.2010

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

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]

 

0.01

Bodies corporate

 

99.19

Other top fifty shareholders

 

0.41

Others

 

0.38

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Company Operates Mainly in Development of Luxury Residences.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Punjab and Sind Bank, J K Somani Building, British Hotel Lane, Fort, Mumbai 400023, Maharashtra, India

 

 

Facilities :

Rs. In Millions

 

SECURED LOAN

31.03.2011

 

31.03.2010

 

Rupee Term Loans Banks Secured

700.000

0.000

Other Debt Secured

151.544

0.000

Interest Accrued Due Other Debt Secured

8.502

0.000

Total

860.046

0.000

 

Note:

(A) Represents : Cash Credit Facility (Secured against First Exclusive Charge on Freehold land with building to be constructed thereon namely Lodha Supremus, personal guarantee of certain promoter directors and further secured against corporate guarantee of the holding company.)

(B) Represents : Interest accrued and due on the Term Loan from Bank

 

UNSECURED LOAN

 

 

 

Fully Convertible Debentures Unsecured

4998.818

0.000

Loans Subsidiaries Unsecured

0.000

2122.151

Deposits related Parties Unsecured

0.000

301.047

Total

4998.818

2423.198

Note:

(A) 4,998,818,300 Compulsary Convertible Debentures of Re. 1 each [Compulsorily convertible into equity shares of the Company at the expiry of 60 Months after the completion date i.e. 3rd Sept, 2015 or at an early date on occurrence of an event of default.]

(B) Loans From : Fellow Subsidiaries

(C) Represents : Loans From Holding Company

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Shaker and Kapani

Chartered Accountant

Address :

Shanker and Kapani, NTC House, 2nd Floor, 15, Narottam Morarjee Marg, Ballard Estate, Mumbai 400038, Maharashtra, India

 

 

Ultimate Holding / Parent Company:

Lodha Developers Limited (From 19th September, 2009)

 

 

Holding Company :

Adinath Builders Private Limited (From 19th September,2009)

 

 

Subsidiaries :

Kidderpore Holdings Limited (From 31/03/11)

 

 

Other Fellow Subsidiary Companies : (From 19th September, 2009 unless otherwise stated)

 

·         Aasthavinayak Estate Company Private Limited

·         Aasthavinayak Real Estate Private Limited

·         Ajitnath Hi-tech Builders Private Limited

·         Anantnath Construction and Farms Private Limited (From 22/11/10)

·         Arihant Premises Private Limited

·         Bahubali Real Estate and Farms Management Private Limited (Upto 01/04/10)

·         Bellissimo Holdings Singapore Pte Limited (Upto 31/03/11)

·         Cowtown Land Development Private Limited

·         Dharamnath Infra and Agro Private Limited (Upto 01/04/10)

·         Galaxy Premises Private Limited

·         Gandhar Builders Private Limited

·         Hi-Class Buildcon Private Limited

·         Hi-Class Developers Private Limited

·         Hotel Rahat Palace Private Limited

·         Infratech Builders and Agro Private Limited

·         Kidderpore Holdings Limited (From 08/11/10 to 30/03/11)

·         Lodha Achiever Buildcon and Farms Private Limited (Upto 01/04/10)

·         Lodha Antique Buildtech and Farms Private Limited (Upto 01/04/10)

·         Lodha Attentive Developers and Farms Private Limited

·         Lodha Attractive Constructions and Farms Private Limited (Upto 01/04/10)

·         Lodha Buildcon Private Limited

·         Lodha Builders Private Limited (Upto 01/07/10)

·         Lodha Building and Construction Private Limited

·         Lodha Construction Private Limited (Upto 01/04/10)

·         Lodha Crown Buildmart Private Limited

·         Lodha Designer Construction Private Limited

·         Lodha Developers UK Limited (27/11/09)

·         Lodha Dwellers Private Limited

·         Lodha Elevation Buildcon Private Limited

·         Lodha Estate Private Limited

·         Lodha Glowing Construction Private Limited

·         Lodha Healthy Constructions and Developers Private Limited

·         Lodha Hi-Rise Builders Private Limited

·         Lodha Home Developers Private Limited

·         Lodha Home Styles Private Limited

·         Lodha Impression Real Estate Private Limited

·         Lodha Land Developers Private Limited

·         Lodha Landscapes Private Limited (Upto 01/04/10)

·         Lodha Novel Buildfarms Private Limited

·         Lodha Pinnacle Buildtech and Farms Private Limited

·         Lodha Prime Buildfarms Private Limited (From 12/11/10)

·         Lodha Properties Development Private Limited

·         Lodha Quality Buildmart Private Limited (From 01/10/10)

·         Lodha Structure Developers Private Limited (From 01/07/10)

·         Lodha Ultimate Buildtech and Farms Private Limited (From 10/06/10)

·         Maa Padmavati Buildtech Private Limited

·         Macrotech Constructions Private Limited

·         Mahavir Build Estate Private Limited

·         Mahavir Premises Private Limited

·         Marutinandan Real Estate Dovelopers Private Limited (Upto 01/04/10)

·         Microtech Constructions Private Limited

·         Naminath Builders and Farms Private Limited

·         Odeon Theatres and Properties Private Limited (Formerly known as Odeon Theatres Private Limited)

·         Padmavati Buildtech and Farms Private Limited (From 30/03/11)

·         Sahajanand Hi-Tech Constructions Private Limited (Formerly known as Parasnath Hi-Tech Construction Private Limited)

·         Sanathnagar Enterprises Limited (Formerly known as Bakelite Hylam Limited) (From 25/05/10)

·         Seatech Estate Private Limited (Formerly known as Lodha and Kheni Estate Private Limited) (Upto 31/03/10)

·         Shantinath Designer Construction Private Limited

·         Shri Kailash Properties and Agro Farms Private Limited (From 01/10/10)

·         Shri Nakoda Bhirav Realtors Private Limited

·         Shri Vardhvinayak Builders Private Limited

·         Shripal Reality Private Limited

·         Siddhnath Residential Paradise Private Limited (Formerly known as Paraswanath Residential Paradise Private Limited)

·         Simtools Private Limited (Formerly known as Simtools Limited)

·         Sitaldas Estate Private Limited

·         Suryakrupa Farms and Construction Private Limited (From 21/03/11)

 

 

Associates (with whom the company had transaction during the year): (Upto 18th September, 2009)

·         Lodha Builders Private Limited

·         Adinath Builders Private Limited

 


 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

2240000

Equity Shares

Rs. 100 each

Rs.224.000 millions

10000

Preference Shares

Rs. 100 each

Rs. 1.000 million

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

990026

Equity Shares

Rs. 100 each

Rs. 99.002 millions

 

 

 

 

 

Note:

990,026 Equity Shares of Rs. 100 Each Fully Paid Up (Including 66,000 Shares allotted as fully paid-up by way of Bonus Shares by capitalization of Reserves) (Out of the above; 942,746 shares are held by Adinath Builders Private Limited, the Holding Company)

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

99.002

99.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

1673.179

1672.000

4] (Accumulated Losses)

 

(396.284)

(170.176)

NETWORTH

 

1375.897

1600.824

LOAN FUNDS

 

 

 

1] Secured Loans

 

860.046

0.000

2] Unsecured Loans

 

4998.818

2423.198

TOTAL BORROWING

 

5858.864

2423.198

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

7234.761

4024.022

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

30.493

0.066

Capital work-in-progress

 

192.284

12.075

 

 

 

 

INVESTMENT

 

0.719

333.159

DEFERREX TAX ASSETS

 

129.381

1.357

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 
8218.145

4336.036

 

Sundry Debtors

 
77.729

0.000

 

Cash & Bank Balances

 
46.314

1.341

 

Other Current Assets

 
0.000

0.000

 

Loans & Advances

 
4196.219

1107.209

Total Current Assets

 
12538.407

5444.586

Less : CURRENT LIABILITIES & PROVISIONS

 
 

 

 

Sundry Creditors

 
591.031

1133.876

 

Other Current Liabilities

 
5065.492

633.345

 

Provisions

 

0.000

0.000

Total Current Liabilities

 
5656.523

1767.221

Net Current Assets

 
6881.884

3677.365

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

7234.761

4024.022

 

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Sales

 

342.934

0.000

 

 

Other Income

 

0.117

0.076

 

 

TOTAL                                     (A)

 

343.051

0.076

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption Materials Changes Inventories

 

230.547

0.000

 

 

Administrative Expenses

 

274.103

60.637

 

 

TOTAL                                     (B)

 

504.650

60.637

 

 

 

 

 

Less

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

 

(161.599)

(60.561)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

188.867

6.875

 

 

 

 

 

 

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

 

(350.466)

(67.436)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

3.669

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

(354.135)

(67.436)

 

 

 

 

 

Less

TAX                                                                  (H)

 

(128.028)

(1.355)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

(226.107)

(66.081)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

(170.176)

(104.095)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

 

(396.283)

(170.176)

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

(228.39)

(80.17)

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2011

31.03.2010

PAT / Total Income

(%)

 

(65.91)

(86948.68)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

(103.26)

(0.00)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

(2.81)

(1.23)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

(0.25)

(0.04)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

 

8.36

2.61

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

2.21

3.08

 

 

LOCAL AGENCY FURTHER INFORMATION

 

FINANCIAL OVERVIEW

The Company’s income has increased from Rs.0.076 million for the period ended 31stMarch, 2010 to Rs.343.051 millions in the financial year 2010-2011. However, the Company recorded a net loss of Rs.226.107 millions for the year under review as against the net loss of Rs.66.081 millions incurred during the previous Financial Year due to gestation period of the project undertaken by it.

 

BUSINESS OVERVIEW

The Company operates mainly in development of luxury residences. The top projects of the Company currently under development are:

 

- World One: Catering to the super-luxury segment, World One at Lodha Place is slated to be the tallest residential structure in the World. Once completed, it will surpass all previous benchmarks set for luxury living spaces creating a landmark destination by bringing together legendary names like Pei Cobb Freed and Partners (Architecture), Ken Smith (Landscape), Six Senses (Club and Spa), Quintessentially (Concierge), Casa Armani (Interior Design).

- World Crest: World Crest is another super – luxury segment, in Lodha Place which is a masterpiece to join the ranks of some of the most remarkable structures in the world. Once completed it will set a benchmark for urban planning in the country. Its edifice is proposed to be in curvilinear design that provides spectacular views from each residence. Its sleek contemporary structure will be a tribute to the collective vision of the greatest talent in the world.

 

The primary focus of the Company is to strengthen its position as a premium developer across business segments and price points, maintaining reputation for quality and innovation and enhance the brand value.

 

 

FORM 8

 

Corporate identity number of the company

U70104MH1935PLC002249

Name of the company

SHREENIWAS COTTON MILLS LIMITED

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

Shreeniwas House, Hazarimal Somani Marg, Fort, Mumbai 400001, Maharashtra, India

This form is for

Creation of charge

Type of charge

Immovable property

Book debts

Movable property (not being pledge)

Particular of charge holder

Punjab and Sind Bank, J K Somani Building, British Hotel Lane, Fort, Mumbai 400023, Maharashtra, India

Email: psb_mbb@yahoo.co.in

Nature of instrument creating charge

Deed of Mortgage dated 24.09.2010.

Date of instrument Creating the charge

24.09.2010

Amount secured by the charge

Rs. 900.000 millions

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

Rate of interest

1) for Term Loan facility and OD facility is Base Rate (8.20%)+4.80% (presently 13.00% p.a.) with monthly rests, to be serviced as and when charged 2) for BG/LC facility is Commission Charges @1% p.a.

 

Terms of repayment

Tenor of

1) Term Loan facility (TL) is 36 months.  The entire term loan to be paid in 4 unequal quarterly installments commencing from Quarter ending September, 2012

2) OD facility is Payable on demand (maximum up to maturity of TL). The OD facility payable on demand.

3) BG is max. up to TL tenor and LC is Usance maximum up to 180 days.

 

Margin

Margin for Term Loan facility and OD facility is 28.40% (However, debt component is 41.80% and balance 29.80% is to be meet through Sale Proceeds) and for BG/LC facility is 25% cash margin.

 

Extent and operation of the charge

The charge is extended to secure repayment of the credit facilities alongwith interest, costs, charges and expenses.

 

Other

Sanctioned Amount of Term Loan facility (TL) is Rs.900 millions.

 

Sub Limit: OD facility of Rs.150 millions (within the TL of Rs.900 millions) and

Sub Limit: BG/LC DA 180 days (Interchangeable) Rs.100 millions (within the TL of Rs.900 millions)

Short particulars of the property charged (Including location of the property)

All that Forus land bearing cadastral Survey no. 453 Lower Parel Division admeasuring 5018 sq. yards equivalent to 4195.67 sq. meters (net 3594 sq. meters) with building to be constructed thereon lying being and situated at Senapati Bapat Marg, Lower Parel, Mumbai - 400013 in the district and subdistrict of Mumbai City and Mumbai Suburban and assessed by Municipal Corporation under "G-South".

 

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

Yes

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter's background

Yes

8) No. of employees

No

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last two years

Yes

12) Profitability for last two years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

Yes

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

--

 

 


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.51.20

UK Pound

1

Rs.81.50

Euro

1

Rs.67.15

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--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

 

27

 

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.