MIRA INFORM REPORT

 

 

Report Date :

03.12.2012

 

IDENTIFICATION DETAILS

 

Name :

SUPREME COT-SPIN MILLS (INDIA) PRIVATE LIMITED

 

 

Registered Office :

419/1A, 1C, Vadugupalayam Road, Thekkalur Post Avanshi TK, District Coimbatore-641654, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

24.01.2005

 

 

Com. Reg. No.:

18-011544

 

 

Capital Investment / Paid-up Capital :

Rs.49.971 Millions

 

 

CIN No.:

[Company Identification No.]

U17111TZ2005PTC011544

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Cotton Yarn.

 

 

No. of Employees :

310 [In Office 60 and 250 In Factory]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (13)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of the Supreme Group. It is an established company having moderate track. There appears some delays by the subject in servicing its debt. The management has failed to file its financials with the government department since 2010.

 

Mr. Arunachalam, Technical Director has provided general information and denied to disclose financial details. However, business is active. Payment terms are slow and delayed.

 

The company can be considered for business dealings on a safe and secured trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

D [Cash Credit, Term Loan and Bank Guarantee]

Rating Explanation

Default

Date

14.10.2011

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Arunachalam

Designation :

Technical Director

Contact No.:

91-9585858502

Date :

27.11.2012

 

 

LOCATIONS

 

Registered Office / Factory :

419/1A, 1C, Vadugupalayam Road, Thekkalur Post Avanshi TK, District Coimbatore-641654, Tamilnadu, India 

Tel. No.:

91-4296-255501/255502/255663

Mobile No.:

91-9585858502 [Mr. Arunachalam]

Fax No.:

91-4296-255503

E-Mail :

supremecotspin@yahoo.com

sam_cosec@rediffmail.com

 

 

DIRECTORS

 

AS ON 30.09.2010

 

Name :

Mr. Rakkiappagounder Gopalswamy

Designation :

Director

Address :

Rakkiappa Gounder, 133, Rayarpalayam No. 5, W. No. 18, Karumathampatti, SPL (P), Coimbatore-641659, Tamilnadu, India

Date of Birth/Age :

12.04.1957

Date of Appointment :

24.01.2005

Din No.:

02177397

 

 

Name :

G. Jegathambal

Designation :

Director

Address :

419, Vadugampalayam Road, Thekkalur, Avinashi, Coimbatore-641654, Tamilnadu, India

Date of Birth/Age :

15.06.1971

Date of Appointment :

24.01.2005

 

 

Name :

Mr. A. Arunachalam

Designation :

Technical Director

Address :

Annamalai, 13/C-1, Vasantha Nagar, Singanallur, Coimbatore-641653, Tamilnadu, India

Date of Birth/Age :

10.06.1954

Date of Appointment :

02.06.2005

 

 

Name :

Mr. Gurusamy Thiyakarajan

Designation :

Director

Address :

Gurusamy, Aruvamkattu Thottam, Pillaiyappan Palayam (PO), Annur-641653, Tamilnadu, India

Date of Birth/Age :

10.03.1977

Date of Appointment :

02.06.2005

Din No.:

02177454

 

 

Name :

Rayappan Muthusami

Designation :

Director

Address :

173, Vadukampalayam, W. No. 2, Palladam, Kittampalaya, (P), Coimbatore-641659, Tamilnadu, India

Date of Birth/Age :

10.05.1961

Date of Appointment :

02.06.2005

Din No.:

02177413

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2010

 

Names of Shareholders

 

No. of Shares

Rakkiappagounder Gopalswamy

 

1817500

Rayappan Muthusami

 

500

Gurusamy Thiyakarajan

 

500

 

AS ON 30.09.2010

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Cotton Yarn.

 

 

Imports :

 

Products :

Fiber

Countries :

·         Thailand

·         Austria

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

PRODUCTION STATUS [AS ON 31.03.2010]

 

Licensed Capacity

16800Spindles

Installed Capacity

16800Spindles

Actual Production

1165256.02 Kgs. of Yarn

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers and Retailers

 

 

No. of Employees :

310 [In Office 60 and 250 In Factory]

 

 

Bankers :

·         State Bank of India, Commercial Branch, 1443, Trichy Road, Coimbatore-641018, Tamilnadu, India

·         State Bank of Hyderabad

 

 

Facilities :

Secured Loan

As on 31.03.2010

[Rs. in Millions]

As on 31.03.2009

[Rs. in Millions]

Term Loan From State Bank of India, Coimbatore

[First charge over the project assets on pari passu basis with SBH, first charge over the fixed assets belonging to company on pari passu basis with SBH]

75.077

75.788

Term Loan From State Bank of India, Coimbatore

[First charge on the fixed assets of the company shared on pari passu basis with SBH pari passu second charge on the entire raw materials, process, semi-finished goods, finished goods, stores and book debts of the company]

61.025

62.590

Cash Credit Loan From State Bank of India, Coimbatore

[First charge over industrial land along with factory building and machinery and residential building standing in the name of the company on pari passu basis with SBH, second charges over the project assets to be finance on pari passu basis with SBH]

37.919

38.795

Cash Credit Loan From State Bank of Hyderabad, Coimbatore

[First charges on raw materials, process, semi-finished goods, finished goods, stores and books debts of the company, shared on pari passu basis with SBI, pari passu second charge on the fixed assets of the company]

32.591

28.420

Term loan II From State Bank of India, Coimbatore

[First charge over the project assets on pari passu basis with SBH, first charge over the fixed assets belonging to company on pari passu basis with SBH]

38.839

39.204

Corporate Loan From State Bank of India, Coimbatore

[First charge on assets]

1.876

4.124

Corporate Loan From State Bank of Hyderabad, Coimbatore

[First charge on all the assets of the company in pari passu with State Bank of India, Coimbatore]

1.875

4.186

TOTAL

249.202

253.107

 

 

 

Unsecured Loan

As on 31.03.2010

[Rs. in Millions]

As on 31.03.2009

[Rs. in Millions]

Loan From Managing Director and Shareholders

21.855

20.015

TOTAL

21.855

20.015

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

T. Gnanasundaram

Chartered Accountants

Address :

3rd Floor, Sri Krishna Corporation Building, 13 Mill Road, Coimbatore-641001, Tamilnadu, India

PAN No:

ACRPG8980C

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4997100

Equity Shares

Rs.10/- each

Rs.49.971 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

49.971

49.971

49.971

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

11.750

8.736

10.103

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

61.721

58.707

60.074

LOAN FUNDS

 

 

 

1] Secured Loans

249.202

253.107

248.474

2] Unsecured Loans

21.855

20.015

19.510

TOTAL BORROWING

271.057

273.122

267.984

DEFERRED TAX LIABILITIES

6.948

3.173

0.000

 

 

 

 

TOTAL

339.726

335.002

328.058

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

183.019

205.323

205.830

Capital work-in-progress

0.000

0.000

20.592

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

1.841

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

87.399

55.023

53.158

 

Sundry Debtors

79.754

71.363

49.685

 

Cash & Bank Balances

9.519

9.668

1.311

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

23.500

27.159

40.061

Total Current Assets

200.172

163.213

144.215

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

37.822

30.795

40.508

 

Other Current Liabilities

0.000

0.000

0.000

 

Provisions

5.643

2.781

3.996

Total Current Liabilities

43.465

33.576

44.504

Net Current Assets

156.707

129.637

99.711

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.042

0.084

 

 

 

 

TOTAL

339.726

335.002

328.058

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

NA

NA

253.100

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                     (A)

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

NA

NA

NA

 

 

 

 

 

Less

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

55.239

52.429

53.968

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

22.598

24.144

29.369

 

 

 

 

 

 

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

32.641

28.285

24.599

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

24.503

24.182

22.438

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

8.138

4.103

2.161

 

 

 

 

 

Less

TAX                                                                  (H)

5.124

5.469

(1.783)

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

3.014

(1.366)

3.944

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

8.737

10.103

6.159

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

11.751

8.737

10.103

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

0.60

(0.27)

--

 

 

Particulars

 

 

 

31.03.2011

Sales Turnover [Approximately]

 

 

309.100

 

 

 

 

Profit/Loss for the year

 

 

6.800

 


KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

NA

NA

NA

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

NA

NA

0.85

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.12

1.11

0.62

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.13

0.07

0.04

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

5.10

5.22

5.20

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

4.61

4.86

3.24

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

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

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for two year

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

No

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

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

31]

PAN of Proprietor/Partner/Director, if available

No

32]

Date of Birth of Proprietor/Partner/Director, if available

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

PERFORMANCE:

 

The production of yarn during the year was 11652560.02 Kgs. In order to conserve more funds for the company. The directors decide not to recommend any dividend for this year.

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

This form is for

Modification of charge

Charge identification number of the modified 

90009384

Corporate identity number of the company

U17111TZ2005PTC011544

Name of the company

SUPREME COT-SPIN MILLS (INDIA) PRIVATE LIMITED

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

419/1A, 1C, Vadugupalayam Road, Thekkalur Post Avanshi TK, District Coimbatore-641654, Tamilnadu, India 

Type of charge

Book Debts

Movable Property [not being pledge]

Immovable Property 

Others

Particular of charge holder

State Bank of India, Commercial Branch, 1443, Trichy Road, Coimbatore-641018, Tamilnadu, India

Email

sbi.07536@sbi.co.in

Nature of description of the instrument creating or modifying the charge

1. Supplemental Agreement of Loan for increase in the overall limit 

2. Supplemental Agreement of Hypothecation of Goods and assets for increase in the overall limit

3. Letter regarding the grant of individual limits within the overall limit

4. Memorandum of Deposit for creation of charge

5. Memorandum of Deposit for creation of further charge for overall limit

Date of instrument Creating the charge

17.02.2012

Amount secured by the charge

Rs.388.100 Millions

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

Rate of Interest

Working capital : 4.25% above Base Rate i.e. 14.25% p.a. Term Loan I,II, III and IV : 4.50% above Base Rate i.e. 14.50% p.a. (in respect of limits sanctioned by SBI)

 

Terms of Repayment

Repayable on demand. New Term Loans of Rs.41.000 Millions and Rs.5.900 Millions are repayable in 84 monthly installments starting from 30th April 2013 after a Moratorium period of 12 months.

 

Margin

Raw materials, Stock in process, Finished goods, and LC 25%

Term Loan - 33.33%

Book debts/Receivables with cover period of 60 days  - Margin 40%

 

Extent and Operation of the charge

CC: First charge on current assets on pari passu basis with other banks in MBA. Existing Term Loans: First charge over the Fixed assets of the company including EM over Factory land and Building on pari passu basis with other Banks in MBA. LC (WC): Exclusive first charge on Current assets. BG (EPCG): Exclusive First charge on Fixed Assets. New Term Loan: Exclusive First charge over entire Project assets. Collateral: Pari passu II charge (i) on Fixed Assets for WC limits (ii) on Current assets for TLs

 

Others

Total limits of Rs.388.100 Millions consist of CC of Rs.92.500 Millions, Outstanding term loans of Rs.97.900 Millions, New Term Loans Rs.46.900 Millions, LC of Rs.30.000 Millions and BG Rs.11.400 Millions (totally Rs.278.700 Millions) sanctioned by State Bank of India and CC Rs.32.500 Millions, Outstanding TL of Rs.52.300 Millions and BG Rs.24.600 Millions (totally Rs.109.400 Millions) sanctioned by State Bank of Hyderabad

Short particulars of the property charged

Stock of raw materials, stock in process, finished goods, capital goods, Book debts and  Plant and Machinery (both

present and future) and project assets

 

Equitable mortgage on immovable properties of the company in Thekkalur village, Avanashi Sub-Registration District under SF No.381/1 (4.29 acres) and SF No.381/2 (4.71 acres) with

 

All rights of way and other appurtenances

 

Equitable mortgage on immovable properties in Thekkalur village, Avinashi SRD, Avinashi TK in SF No.382/1A admeasuring 3.30 acres (Exclusive charge to SBI)

 

Equitable mortgage on immovable properties in Thekkalur village, Avinashi SRD, Avinashi TK in SF No.382/1B admeasuring 3.80 acres (Exclusive charge to SBI)

Date of latest modification prior to the present modification

11.03.2011

Particulars of the present modification 

Limits advanced by State Bank of India have been increased from Rs.264.500 Millions to Rs.278.700 Millions and Limits of SBH modified to Rs.109.400 Millions, total limits modified to Rs.388.100 Millions. Charge on stock, book debts, plant and machinery and on immovable properties in Thekkalur under SF No.381/1 (4.29 acres) and SF No.381/2 (4.71 acres) extended to secure Rs.388.100 Millions. Exclusive charge for SBI on immovable properties in Thekkalur village under SF No.382/1A (3.30 acres) and 382/1B(3.80 acres)

 

FIXED ASSETS:

 

·         Land

·         Building

·         Plant and Machinery

·         Furniture and Fittings

·         Office Equipments

·         Computer and Software

 

 

 

 


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 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.54.53

UK Pound

1

Rs.87.48

Euro

1

Rs.70.89

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

1

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

1

--LEVERAGE

1~10

1

--RESERVES

1~10

1

--CREDIT LINES

1~10

1

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

13

 

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.