|
Report Date : |
23.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
ESSAR INVESTMENTS LIMITED |
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|
|
Registered Office : |
Essar House, 11-K.K. Marg, Mahalaxmi, Mumbai – 400 034, |
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Country : |
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|
|
|
Financials (as on) : |
31.03.2010 |
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|
|
Date of Incorporation : |
10.12.1976 |
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|
Com. Reg. No.: |
11-34721 |
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|
|
Capital Investment / Paid-up Capital : |
Rs.35.025 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L99999MH1976PLC034721 |
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|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUM00598D |
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|
|
Legal Form : |
Public Limited Liability Company Company’s Share are Listed on the
Stock Exchange (The company is listed but it is suspended from trading due to penal
reasons) |
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|
Line of Business : |
To Purchase acquire hold and dispose of or otherwise deal and invest
in any share, debentures and other securities in or of any company or combines |
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|
No. of Employees : |
Information denied by the management. |
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 35000000 |
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|
|
Status : |
Moderate |
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|
|
Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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|
Comments : |
Subject is an established company having moderate track. Profitability
of the company is under severe pressure. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DENIED BY
Management Non Co-Operative.
LOCATIONS
|
Registered Office : |
Essar House, 11-K.K. Marg, Mahalaxmi, Mumbai – 400 034, |
|
Tel. No.: |
91-22-50011100 / 66601100 |
|
Fax No: |
91-22-66601809 |
|
E-mail: |
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|
Website : |
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|
|
|
Corporate Office : |
142 Maker Chambers IV, Esssar House, Mahalakshmi, Mumbai – 400 034, |
|
Tel No. : |
91-22-2042600 |
DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. S. V. Venkatesan |
|
Designation : |
Director |
|
Address : |
F-401, The Atrium old No. 49, New No.22, |
|
Date of Birth/Age : |
01.10.1939 |
|
Date of Appointment: |
13.09.1991 |
|
Din No.: |
00004010 |
|
|
|
|
Name : |
Mr. Suresh Sundaram |
|
Designation : |
Director |
|
Address : |
Flat No. 12-B, Jaldarshan, |
|
Date of Birth/Age : |
03.10.1942 |
|
Date of Appointment : |
28.04.2006 |
|
Din No.: |
00063535 |
|
|
|
|
Name : |
Mr. Narottam Babulal Vyas |
|
Designation : |
Secretary |
|
Address : |
A-3/1701, Whispering Palms, Lokhandwala Complex, Akurli road, kandivali (East), Mumbai:400101, Mahrashtra |
|
Date of Birth/Age : |
03.07.1954 |
|
Date of Appointment : |
26.02.1990 |
|
Din No.: |
00055499 |
KEY EXECUTIVES
|
Name : |
Mr. R Vijay |
|
Designation : |
Secretary |
|
Address : |
20/85, Bhaveshwar Dham, |
|
Date of Birth/Age : |
28.07.1976 |
|
Date of Appointment : |
06.02.2007 |
|
|
|
|
Name : |
Mr. Bhuvanesh Vyas |
|
Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS
AS ON 30.09.2010
|
Names of Equity Shareholders |
No. of Shares |
|
Manju Ruia |
339984 |
|
Anshuman S Ruia |
10 |
|
Manju Ruia and S Shankaranarayanan |
1 |
|
Manju Ruia and Mandan Mundhra |
1 |
|
Manju Ruia and and N B Vyas |
1 |
|
Manju Ruia and and G K Sathe |
1 |
|
Manju Ruia and and V Ganeshan |
1 |
|
Kroner Investment Limited, Mumbai
|
1 |
|
Total |
340000 |
|
Names of Preference Shareholders |
No. of Shares |
|
Imperial Consultants Securities Private Limited, India |
2471510 |
|
Trustees of Millenium Growth and Development Fund, India |
281000 |
AS ON 30.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
49.00 |
|
Directors
or relatives of directors |
|
51.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
To Purchase acquire hold and dispose of or otherwise deal and invest
in any share, debentures and other securities in or of any company or
companies |
|
|
|
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management. |
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Bankers : |
State Bank of India, Diamond Branch, Mumbai – 400 004, Maharashtra,
India |
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Facilities : |
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|
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Nisar and Kumar Chartered Accountant |
|
Address
: |
1305, Arcadia Building, Next To Earnest House, Npca Marg, Nariman
Point, Mumbai – 400 021, Maharashtra, India
|
|
Tel No. : |
91-22-23515912 / 40005394 |
|
|
|
|
Subsidiaries : |
CIN No.: U65990MH1989PLC052712
CIN No. U23209MH2005PLC156861
CIN No. U72200MH1992PLC064816
CIN No. U27106MH2007PLC172940
CIN No. U51909MH2006PLC164605
CIN No. U40108MH2007PLC175185
CIN No. U80301MH2008PLC187667
CIN No. U01403MH2008PLC186562
CIN No. U51900MH2008PLC185022
CIN No. U40200MH2008PLC184000
CIN No. U40109MH2008PLC184001
CIN No. U26940MH2008PLC185664 · Essar Heavy Engineering Services Limited CIN No.: U93000GJ2008PLC054681 ·
Aegis Aspire
Consultancy Services Limited (Ceased to bo subsidiary during the year)
|
|
|
|
|
Associates : |
|
|
|
|
|
|
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2500000 |
Equity Shares |
Rs.10/- each |
Rs. 25.000 Millions |
|
5000000 |
500% Non Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs. 50.000 Millions |
|
2000000 |
0.01% Non Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
|
500000 |
10% Non Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs. 5.000 Millions |
|
|
Total |
|
Rs. 100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
340000 |
Equity Shares |
Rs.10/- each
|
Rs.3.400
Millions |
|
|
Less: NIL (P.Y415,974 Equity
shares (reduction on account of Amalgamation) 340,000 {P.Y. 334,406) Equity
shares [Of the above, 306,673 [After pro
rata reduction of 293,327 equity shares on account of amalgamation equity
shares were allotted as fully paid up bonus shares by capitalization of
Reserves and 780 equity shares were allotted as fully paid-up pursuant to the
Scheme of Amalgamation without payment being received in cash] |
|
NIL |
|
2471510 |
500% Non Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs. 24.715
Millions |
|
|
|
|
|
|
281000 |
0.01% Non Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs. 2.810
Millions |
|
|
|
|
|
|
410018 |
10% Non Cumulative Redeemable Preference Shares to be issued on merger |
Rs.10/- each |
Rs. 4.100
Millions |
|
|
Total |
|
Rs. 35.025 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 [18 Months] |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
35.025 |
34.977 |
41.029 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8756.153 |
10370.332 |
17034.206 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8791.178 |
10405.309 |
17075.235 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
56700.725 |
39205.025 |
27204.184 |
|
|
TOTAL BORROWING |
56700.725 |
39205.025 |
27204.184 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
65491.903 |
49610.334 |
44279.419 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
177.873 |
129.379 |
104.392 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
64916.506 |
58966.509 |
58966.647 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000
|
|
|
Sundry Debtors |
143.813
|
60.744
|
1.063
|
|
|
Cash & Bank Balances |
484.412
|
710.204
|
451.905
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
10130.775
|
7492.580
|
11263.780
|
|
Total
Current Assets |
10759.000
|
8263.528
|
11716.748 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5471.571
|
6936.483
|
16537.071
|
|
|
Other Current Liabilities |
4524.128
|
10656.061
|
9752.774
|
|
|
Provisions |
363.677
|
328.438
|
218.523
|
|
Total
Current Liabilities |
10359.376
|
17920.982
|
26508.368
|
|
|
Net Current Assets |
399.624
|
(9657.454)
|
(14791.620)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
FOREIGN CURRENCY MONETARY TRANSACTION DIFFERENCE |
(2.100) |
171.900 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
65491.903 |
49610.334 |
44279.419 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 [18 Months] |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Sales and Services |
1781.392 |
755.497 |
59.841 |
|
|
|
Other Income |
647.874 |
901.434 |
473.910 |
|
|
|
Profit on sale of Investments |
2355.578 |
3325.934 |
1442.043 |
|
|
|
Profit on sale of Assets |
2.220 |
0.000 |
0.000 |
|
|
|
TOTAL |
4787.064 |
4982.865 |
1975.794 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Staff Cost |
1220.429 |
659.656 |
157.389 |
|
|
|
Administrative and Other Operating Expenses |
2189.595 |
375.683 |
637.312 |
|
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
19.841 |
2.396 |
|
|
|
Share of Loss in Partnership Firm |
39.186 |
0.005 |
0.000 |
|
|
|
Loss on sale of investments |
1564.351 |
269.358 |
3787.136 |
|
|
|
Investments written off |
0.115 |
0.021 |
0.960 |
|
|
|
Provision for (Write back) of Provision for
Diminution in the value of Investment |
(480.528) |
10.319 |
792.828 |
|
|
|
Decrease in value of Current Investment |
0.105 |
0.000 |
0.000 |
|
|
|
TOTAL |
4533.253 |
1334.883 |
5378.021 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
253.811 |
3647.982 |
(3402.227) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1849.361 |
1359.645 |
62.285 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(1595.550) |
2288.337 |
(3464.512) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
18.071 |
9.490 |
7.074 |
|
|
|
|
|
|
|
|
|
Less |
WITHDRAWAL
DURING THE YEAR |
0.000 |
(1.923) |
0.000 |
|
|
|
|
|
|
|
|
|
|
GOODWILL ON
AMALGAMATION WRITTEN OFF |
0.000 |
3160.377 |
213.770 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
(1613.621) |
(879.607) |
(3685.356) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.558 |
17.260 |
4.727 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
(1614.179) |
(896.867) |
(3690.083) |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
(4786) |
(2682) |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 [18 Months] |
|
PAT / Total Income |
(%) |
(33.71) |
(18.00) |
(186.76)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(90.58) |
(116.43) |
(6158.58)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(14.75) |
(10.48) |
(31.18)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.18) |
(0.08) |
(0.22)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
7.63 |
5.49 |
3.15
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04 |
0.46 |
0.44
|
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2010 Rs.
in Millions |
31.03.2009 Rs.
in Millions |
31.03.2008 [18
Months] Rs.
in Millions |
|
Sundry Creditors (other than dues o micro, small and medium
enterprises) |
5471.572 |
6936.483 |
16537.071 |
|
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 |
No |
|
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 three years |
Yes |
|
12) Profitability for last three 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 |
No |
|
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 |
No |
|
30) Major Shareholders, if available |
Yes |
FINANCIAL RESULTS:
During the year, the company consolidated its management consultancy and
support service activity. Income from the same increased from Rs.755.500 millions
to Rs.1781.400 millions. However, due to increased cost of setup, the company
incurred losses in this business segment. The company is confident of
increasing its client base as well as revenue in future years. The company also
earned profit on sale of investment amounted to Rs.791.200 millions.
FIXED ASSETS:
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 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.52.00 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.68.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.