1. Summary Information

 

 

Country

India

Company Name

Karnani Solves Private Limited

Principal Name 1

Mr. Sanjay Kumar Karnani

Status

Moderate

Principal Name 2

Mr. Narayan Karnani

 

 

Registration #

17-025558

Street Address

M-8, Mahesh Colony, Tonk Phatak, Jaipur – 302015, Rajasthan, India

Established Date

20.12.2007

SIC Code

--

Telephone#

Not Available

Business Style 1

Manufacturer

Fax #

Not Available

Business Style 2

Exporter

Homepage

http://www.karnanisolvex.com

Product Name 1

Rapeseed Meal

# of employees

Not Available

Product Name 2

De-Oiled Cake

Paid up capital

Rs.12,860,000/-

Product Name 3

Other Food Grains

Shareholders

Bodies corporate -0.47%, Directors or relatives of directors- 98.83%, Other top fifty shareholders- 0.70%

Banking

Bank of Baroda

Public Limited Corp.

No

Business Period

5 years

IPO

No

International Ins.

--

Public Enterprise

No

Rating

B (27)

Related Company

Relation

Country

Company Name

CEO

--

--

--

--

Note

--

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2010

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

79,641,000

Current Liabilities

36,005,000

Inventories

24,245,000

Long-term Liabilities

125,433,000

Fixed Assets

119,248,000

Other Liabilities

2,489,000

Deferred Assets

0,000

Total Liabilities

163,927,000

Invest& other Assets

326,000

Retained Earnings

46,669,000

 

 

Net Worth

59,533,000

Total Assets

223,460,000

Total Liab. & Equity

223,460,000

 Total Assets

(Previous Year)

69,936,000

 

 

P/L Statement as of

31.03.2010

(Unit: Indian Rs.)

Sales (Gross Income)

424,520,000

Net Profit

2,929,000

Sales(Previous yr)

(Gross Income)

Nil

Net Profit(Prev.yr)

Nil

 

 

MIRA INFORM REPORT

 

 

Report Date :

05.12.2012

 

IDENTIFICATION DETAILS

 

Name :

KARNANI SOLVEX PRIVATE LIMITED

 

 

Registered Office :

M-8, Mahesh Colony, Tonk Phatak, Jaipur – 302015, Rajasthan

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

20.12.2007

 

 

Com. Reg. No.:

17-025558

 

 

Capital Investment / Paid-up Capital :

Rs.12.860 Millions

 

 

CIN No.:

[Company Identification No.]

U15143RJ2007PTC025558

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Rapeseed Meal/De-Oiled Cake/Other Food Grains/ Mustard Oil/ Guar Gum Powder.

 

 

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 240000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears decline in the profitability in the year 2009-2010. And the financial details for the year 2010-11 is missing from government department.

 

However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealing 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 – 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

Cash Credit: BB

Rating Explanation

Having moderate risk of default regarding timely servicing of financial obligation.

Date

July, 2012

 

 

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.

 

 

LOCATIONS

 

Registered Office :

M-8, Mahesh Colony, Tonk Phatak, Jaipur – 302015, Rajasthan, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

rajeshsharmaf128@hotmail.com

Website :

http://www.karnanisolvex.com

 

 

Administrative Office :

‘Mangalam’ 291, Dadu Marg, Barkat Nagar, Tonk Phatak, Jaipur – 302015, Rajasthan, India

Tel. No.:

91-141-2597963/64/65

Fax No.:

91-141-2597962

E-Mail :

karnanisolexipr@gmail.com

 

 

Factory 1:

Opposite HP Petrol Pump, 3km. Far From Banskho Railway Phatak Towards Dausa, Main Agra Road, Jaipur, Rajasthan, India

 

 

Factory 2:

E-1, RIICO Industrial Area, Didwana, Lalsot, Dausa, Rajasthan, India

 

 

Factory 3:

29, Sector-15 , Phase-II , GC Bawal, Rewadi Haryana, India

 

 

DIRECTORS

 

(AS ON 30.09.2011)

 

Name :

Mr. Sanjay Kumar Karnani

Designation :

Director

Address :

M-8, Mahesh Colony, Tonk Phatak, Jaipur – 302015, Rajasthan, India

Date of Birth/Age :

29.09.1977

Date of Appointment :

20.12.2007

DIN No.:

00964275

 

 

Name :

Mr. Narayan Karnani

Designation :

Director

Address :

M-8, Mahesh Colony, Tonk Phatak, Jaipur – 302015, Rajasthan, India

Date of Birth/Age :

30.03.1984

Date of Appointment :

20.12.2007

DIN No.:

00964337

 

 

Name :

Mr. Satendra Pal Tiwari

Designation :

Director

Address :

21, Shakti Nagar, J L N Marg, Jaipur – 302019, Rajasthan, India 

Date of Birth/Age :

12.12.1955

Date of Appointment :

15.09.2008

DIN No.:

01589045

 

 

Name :

Mrs. Gouri Shankar Dhamani

Designation :

Director

Address :

255-56, Dhamani Bhawan, Sumerkaran Rasta, Ramganj, Jaipur – 302001, Rajasthan, India 

Date of Birth/Age :

21.07.1977

Date of Appointment :

15.09.2008

DIN No.:

02338238

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 30.09.2011)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Sanjay Kumar Karnani

 

304980

Narayan Karnani

 

165000

Sapna Karnani

 

306500

Sharda Devi Karnani

 

240000

Shiv Ratan Karnani

 

254500

Arun Kumar Das

 

1000

Dilip Kumar Agarwal

 

1000

Rbin Dwa

 

1000

Sanju Pareek

 

2000

SSukhmay Day

 

1000

Vijay Pal

 

1000

Harish Kumar

 

1000

Chhote Lal Meena

 

1000

Blue Stone Readymade Garments Private Limited, India

 

6000

Rajesh Sharma HUF

 

10

Manju Sharma

 

10

 

 

 

Total

 

 

1286000

 

 

(AS ON 30.09.2011)

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

Bodies corporate

 

0.47

Directors or relatives of directors

 

98.83

Other top fifty shareholders

 

0.70

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Rapeseed Meal/De-Oiled Cake/Other Food Grains/ Mustard Oil/ Guar Gum Powder.

 

 

Products :

Products Description

Item Code No.

 

Solvent Oils

1515

Deoiled Cake

230600

 

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Unit

 

Actual Production

 

 

 

Edible Oils (Vegetable and Refined Oil)

(In Metric Tonnes)

2,485.770

De-Oiled Cakes

(In Metric Tonnes)

31,412.230

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         Bank of Baroda

G-1/168, Sitapura Industrial Area, Jaipur – 302022, Rajasthan, India

 

 

Facilities :

Secured Loans

31.03.2010

31.03.2009

 

 

(Rs. In Millions)

 

 

 

Term Loans Banks

Bank of Baroda

Notes:

Secured by Equitable Mortgage of all the immovable assets, both present and future on first charge basis and hypothecation of all machineries and plant etc of the company

87.000

0.000

In Cash Credit A/C

From Bank of Baroda    

Cash credit and packing credit and Other working capital facilities from the banks are secured by hypothecation of finished goods raw material, stores, work in progress and consumables and book debts of the company and personal guarantee of all the directors and equitable mortgage of the fixed assets of company.

32.631

0.000

 

 

 

Total

 

119.631

0.000

 

Unsecured Loans

31.03.2010

31.03.2009

 

 

(Rs. In Millions)

 

 

 

HDFC Bank Limited

(Against Hypothecation Alto car)

0.091

0.161

Kotak Mahindra Bank

(Against Innova Car)

0.539

0.774

From Directors and Share Holders

5.172

8.720

 

 

 

Total

 

5.802

9.655

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B. L. Dusad and Company

Chartered Accountant

Address :

Khetan Bhawan, M. I. Road, Jaipur – 302001, Rajasthan, India

PAN No.:

AACFB6800D

 

 

CAPITAL STRUCTURE

 

(AS ON 30.09.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1500000

Equity Shares

Rs.10/- each

Rs.15.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1359900

Equity Shares

Rs.10/- each

Rs.13.599 Millions

 

 

 

 

 

 

(AS ON 31.03.2010)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1500000

Equity Shares

Rs.10/- each

Rs.15.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1286000

Equity Shares

Rs.10/- each

Rs.12.860 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

12.860

12.720

0.100

2] Share Application Money

0.004

0.100

0.000

3] Reserves & Surplus

46.669

42.480

0.000

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

59.533

55.300

0.100

LOAN FUNDS

 

 

 

1] Secured Loans

119.631

0.000

0.000

2] Unsecured Loans

5.802

9.655

0.000

TOTAL BORROWING

125.433

9.655

0.000

DEFERRED TAX LIABILITIES

1.674

0.000

0.000

 

 

 

 

TOTAL

186.640

64.955

0.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

119.248

0.000

0.000

Capital work-in-progress

0.000

54.996

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

24.245

0.000

0.000

 

Sundry Debtors

51.287

0.000

0.000

 

Cash & Bank Balances

12.786

2.586

0.081

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

15.568

11.004

0.000

Total Current Assets

103.886

13.590

0.081

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

34.779

4.864

0.006

 

Other Current Liabilities

1.226

0.117

0.000

 

Provisions

0.815

0.000

0.000

Total Current Liabilities

36.820

4.981

0.007

Net Current Assets

67.066

8.609

0.075

 

 

 

 

MISCELLANEOUS EXPENSES

0.326

1.350

0.025

 

 

 

 

TOTAL

186.640

64.955

0.100

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

TOTAL                                     (A)

424.520

0.000

0.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

405.771

0.000

0.000

 

 

 

 

 

Less

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

18.749

0.000

0.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

6.833

0.000

0.000

 

 

 

 

 

 

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

11.916

0.000

0.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

6.498

0.000

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

5.418

0.000

0.000

 

 

 

 

 

Less

TAX                                                                  (H)

2.489

0.000

0.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

2.929

0.000

0.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.28

--

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

0.69

0.00

0.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.43

0.00

0.00

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.09

0.00

0.00

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.73

0.26

0.07

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.82

2.73

11.57

 


 

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

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

No

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 

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

FINANCIAL RESULTS

 

The company has successfully implemented its modern technology project of edible oil manufacturing unit by way of solvent extraction method at Village: Gothda, Post Hansmahal, Tehsil: Bassi, Jaipur. The project started its commercial operations from September, 2009 and since then the plant is running smoothly. However the company faced some initial technical teething problems, which were suitably, tackled keeping in view the lowest cost of processing.

 

 

REVIEW OF OPERATIONS AND FINANCIAL POSITION

 

The gross income during the period was Rs.424.520 Millions for period of 7 months only. Further during the period the profit after tax has been Rs.2.929 Millions. The performance of the company has been satisfactory in view of first year of operation.

 

 

CONTINGENT LIABILITIES

 

Particulars

31.03.2010

(Rs. In Millions)

 

 

Guarantee issued by bank for which counter guarantee given by company (Previous year Rs.Nil)  

0.216

 

 

FORM 8

 

This form is for

Modification of charge

Charge identification number of the modified 

10332048

Corporate identity number of the company

U15143RJ2007PTC025558

Name of the company

KARNANI SOLVEX PRIVATE LIMITED

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

M-8, Mahesh Colony, Tonk Phatak, Jaipur – 302015, Rajasthan, India

rajeshsharmaf128@hotmail.com

Type of charge

Other: Corporate Guarantee

Particular of charge holder

Bank of Baroda

G-1/168, Sitapura Industrial Area, Jaipur – 302022, Rajasthan, India

sitjai@bankofbaroda.com

Nature of description of the instrument creating or modifying the charge

Corporate Guarantee - LDOC 33(A)

Date of instrument Creating the charge

28/09/2012

Amount secured by the charge

Rs.150.000 Millions

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

Rate of Interest

Not Applicable

 

Terms of Repayment

Not Applicable

 

Margin

Not Applicable

 

Extent and Operation of the charge

Company has extended corporate guarantee to M/s Tripple Star Agri Private Limited for credit facility of Rs. 100.000 Millions and term loan of Rs.50.000 Millions. Total Rs.150.000 Millions.

 

Short particulars of the property charged

Corporate Guarantee to secure the credit facilities of Rs.100.000 Millions and Term Loan of Rs.50.000 Millions granted to Tripple Star Agri Private Limited.

 

Date of latest modification prior to the present modification

20.01.2012

Particulars of the present modification 

Corporate Guarantee to secure CC of Rs.20.000 Millions extended to Rs.100.000 Millions and Fresh Sanction of Rs.50.000 Millions of Term Loan granted to Tripple Star Agri Private Limited.

 

 

FIXED ASSETS:

 

·         Land

·         Factory Building

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles

·         Other Equipment

·         Computers

 

 

 


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.54.56

UK Pound

1

Rs.87.46

Euro

1

Rs.71.08

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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

NO

--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.