MIRA INFORM REPORT

 

 

Report Date :

11.12.2012

 

IDENTIFICATION DETAILS

 

Name :

BUSINESS ALGORITHMS PRIVATE LIMITED

 

 

Registered Office :

39, Shankar Nagar, Nagpur – 440 010, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

24.08.1994

 

 

Com. Reg. No.:

11-080566

 

 

Capital Investment / Paid-up Capital :

Rs.0.932 million

 

 

CIN No.:

[Company Identification No.]

U72900MH1994PTC080566

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

NGPB00855B

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged mainly in the business of retail trade of I.T. Products.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 151000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having good track. The financial position of the company appears healthy.

 

Even though there appears some dip in the sales during 2012, the profitability appears improved.

 

Trade relations are reported as decent. Business is active. Payment terms are usually correct.

 

The company can be considered good for business dealings at usual 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.

 

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

 

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 DECLINED BY

 

Name :

Ms. Rita

Designation :

Accounts Head

Contact No.:

91-712-2536665

Date :

10.12.2012

 

 

LOCATIONS

 

Registered Office :

39, Shankar Nagar, Nagpur – 440 010, Maharashtra, India

Tel. No.:

91-712-2546800/ 2529122/ 2503545/ 2536665

Mobile No.:

91-9923408811 (Mr. Sudhir)

Fax No.:

91-712-2536665/ 2530546

E-Mail :

customer@balgo.com

logistics@balgo.com

Website :

http://www.balgo.com

Area :

1300 sq ft

Location :

Owned

 

 

Wadi Ofiice :

Shop No.39, 44, 45, 46, Chawla Complex, National High Way No.6, Wadi, Nagpur – 440 028, Maharashtra, India

Tel./ Fax No.:

91-7174-221939

 

 

Nagpur City Reseller Sales Department :

Ground Floor, Nisha Smruti Apartment, Rahate colony, Wardha Road, Dhantoli, Nagpur – 440 012, Maharashtra, India

Tel. No.:

91-712-2420353

E-Mail :

rd.sales@balgo.com

 

 

Show Room and Service Center :

South East Park Corner, Abhyankar Road, Dhantoli, Nagpur – 440 012, Maharashtra, India

Tel. No.:

91-712-2433703

Fax No.:

91-712-2457563

E-Mail :

showroom@balgo.com

Area :

1000 sq ft

Location :

Owned

 

 

DIRECTORS

 

As on 25.09.2012

 

Name :

Mr. Sudhir Sukhrup Budhay

Designation :

Director

Address :

39, Shankar Nagar, Nagpur – 440 010, Maharashtra, India

Date of Birth/Age :

01.09.1959

Qualification :

B.E. (Mechanical)

Date of Appointment :

24.08.1994

DIN No.:

01575309

 

 

Name :

Mrs. Reeta Sudhir Budhay

Designation :

Director

Address :

39, Shankar Nagar, Nagpur – 440 010, Maharashtra, India

Date of Birth/Age :

26.01.1962

Qualification :

B.E. (Mechanical)

Date of Appointment :

24.08.1994

DIN No.:

00974816

 

 

Name :

Ms. Rasika Sudhir Budhay

Designation :

Director

Address :

39, Shankar Nagar, Nagpur – 440 010, Maharashtra, India

Date of Birth/Age :

06.11.1985

Qualification :

B.E. (Electronics)

Date of Appointment :

15.11.2003

DIN No.:

00975093

 

 

Name :

Mrs. Leela Dinanath Deshpande

Designation :

Director

Address :

103, Govind Apartments, Shankar Nagar, Nagpur – 440 010, Maharashtra, India

Date of Birth/Age :

18.05.1932

Qualification :

P.H.D.

Date of Appointment :

28.01.1999

DIN No.:

01575377

 

 

Name :

Ms. Saee Sudhir Budhay

Designation :

Director

Address :

39, Sumati Dandige Layout, Shankar Nagar, Nagpur – 440 010, Maharashtra, India

Date of Birth/Age :

07.05.1991

Date of Appointment :

28.08.2009

DIN No.:

02760860

 

 

KEY EXECUTIVES

 

Name :

Ms. Rita

Designation :

Accounts Head

E-Mail :

logistic@balgo.com

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 25.09.2012

 

Names of Shareholders

 

No. of Shares

 

A’ Equity Shares

 

 

Sudhir Sukhrup Budhay

 

2500

Reeta Sudhir Budhay

 

2500

Rasika Sudhir Budhay

 

500

Saee Sudhir Budhay

 

500

(A)

 

6000

B’ Equity Shares

 

 

Leela Dinanath Deshpande

 

110

Sushma Sukhrup Budhay

 

10

Sudhir Sukhrup Budhay

 

1500

Reeta Sudhir Budhay

 

1500

Rasika Sudhir Budhay

 

100

Saee Sudhir Budhay

 

100

(B)

 

3320

 

 

 

Total (A+B)

 

9320

 

As on 25.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged mainly in the business of retail trade of I.T. Products.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

v  ICICI Bank Limited, Akaswani Square Branch, Nagpur, Maharashtra, India

v  State Bank of India, Dharanpeth Napur Branch, Maharashtra, India

v  Central Bank of India

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

SHORT-TERM BORROWINGS

 

 

From Banks

3.100

0.000

Total

3.100

0.000

 

Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

SHORT-TERM BORROWINGS

 

 

From Directors

9.130

9.774

From Relatives

3.332

2.535

From Others

0.000

5.276

Total

12.462

17.585

 

SHORT-TERM BORROWINGS

Notes:

(i) Cash credit account secured by hypothecation of movable assets, stocks, debtors and personal guarantee of directors, collateral security of security of the company.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

C.N. Patel and Company

Chartered Accountants

Address :

Gani Sons Charitable Trust Building, Residency Road, Sadar, Nagpur – 440 001, Maharashtra, India

Tel. No.:

91-712-2584800/ 2584082

E-Mail :

cnpca@rediffmail.com

Income-tax PAN of auditor or auditor's firm :

AACFC6640G

 

 

Associated Concerns :

v  Computer Stores

v  Business Data Processors

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

6000

‘A’ Equity Shares

Rs.100/- each

Rs.0.600 million

4000

‘B’ Equity Shares

Rs.100/- each

Rs.0.400 million

 

Total

 

Rs.1.000 million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

6000

‘A’ Equity Shares

Rs.100/- each

Rs.0.600 million

3320

‘B’ Equity Shares

Rs.100/- each

Rs.0.332 million

 

Total

 

Rs.0.932 million

 

Number of Shares held by each shareholder

 

 

Particulars

As at March 31, 2012

% issued share capital

No. of shares

(i) A’ Equity Shares

 

 

1. Sudhir Sukhrup Budhay

41.67

2500

2. Reeta Sudhir Budhay

41.67

2500

3. Rasika Sudhir Budhay

8.33

500

4. Saee Sudhir Budhay

8.33

500

 

 

 

B’ Equity Shares

 

 

1. Sudhir Sukhrup Budhay

45.18

1500

2. Reeta Sudhir Budhay

45.18

1500

 

Rights, Preference and Restrictions attached to shares

 

(i) The class 'A' equity shares shall always be held by (1) Mr. Sudhir S. Budhay (2) Mrs. Reeta S. Budhay and/or their relatives as defined in section 6 of the companies Act, 1956. Class 'B' equity shares shall allotted to such persons and in such proportions as may be decided by the Board of Directors from time to time

 

(ii) Class 'A' equity shares shall carry 10 (ten) votes for each equity share and class 'B' equity share shall carry one vote for each equity share.

 

Movement of number of shares and share capital:

 

Particulars

No. of Shares

Amount

(Rs. in millions)

Ordinary Shares

 

 

'A' Equity Shares

 

 

As on 1st April

6000

0.600

 

 

 

Shares as on 31st March

6000

0.600

 

 

 

'B' Equity Shares

 

 

As on 1st April

3320

0.332

 

 

 

Shares as on 31st March

3320

0.332

 

Information regarding issue of shares in last 5 years

 

(i) The company has not issued shares without payment being received in cash.

 

(ii) The company has not issued bonus shares.

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

0.932

0.932

0.932

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

36.914

31.708

27.389

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

37.846

32.640

28.321

LOAN FUNDS

 

 

 

1] Secured Loans

3.100

0.000

5.275

2] Unsecured Loans

12.462

17.585

13.500

TOTAL BORROWING

15.562

17.585

18.775

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

53.408

50.225

47.096

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

5.152

5.792

6.079

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.124

5.147

0.000

DEFERRED TAX ASSETS

0.768

0.654

0.594

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
15.165

12.326

18.844

 

Sundry Debtors
11.598

23.443

26.576

 

Cash & Bank Balances
44.339

19.527

22.894

 

Other Current Assets
1.559

0.529

0.000

 

Loans & Advances
4.658

6.353

6.525

Total Current Assets
77.319

62.178

74.839

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
18.221

9.040

21.061

 

Other Current Liabilities
3.666

6.856

6.068

 

Provisions
8.068

7.650

7.287

Total Current Liabilities
29.955

23.546

34.416

Net Current Assets
47.364

38.632

40.423

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

53.408

50.225

47.096

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from Operations

229.169

284.165

307.711

 

 

Other Income

7.801

6.941

7.496

 

 

TOTAL                                     (A)

236.970

291.106

315.207

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of Stock in Trade

212.945

258.186

305.335

 

 

Changes in inventories of finished goods, work in progress and Stock –in-Trade

(2.838)

6.518

 

 

 

Employee Benefits Expenses

8.226

9.363

 

 

 

Other Expenses

6.166

5.768

 

 

 

TOTAL                                     (B)

224.499

279.835

305.335

(including Financial Expenses)

 

 

 

 

 

Less

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

12.471

11.271

 

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

1.737

1.335

 

 

 

 

 

 

 

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

10.734

9.936

9.872

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.344

0.428

0.439

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

10.390

9.508

9.433

 

 

 

 

 

Less

TAX                                                                  (H)

3.019

3.015

2.926

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

7.371

6.493

6.507

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

27.089

24.769

20.636

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

2.000

2.000

0.200

 

 

Proposed Dividend

1.864

1.864

1.864

 

 

Dividend Tax

0.302

0.309

0.316

 

BALANCE CARRIED TO THE B/S

30.294

27.089

24.769

 

 

 

 

 

 

Earnings Per Share (Rs.)

785.00

690.00

686.00

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
3.11

2.23

2.06

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.53

3.35

3.07

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
12.60

13.99

11.66

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.27

0.29

0.33

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.20

1.26

1.88

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.58

2.64

2.17

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Sundry Creditors

 

 

 

(a) Other than acceptances*

18.221

9.040

21.061

 

 

 

 

 

* Including following related party

 

(a) Business Solutions

Rs.1.775 millions

(b) Computer Stores

Rs.13.206 millions

 

 

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

Yes

10) Designation of contact person

Yes

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

Yes

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

No

 

 


OPERATION:

 

In this connection the Directors are point out that the total sales for the year were marginally lower than the previous year. The total sales were Rs.229.169 millions during the year as against Rs.284.165 millions from previous year. The operations for the year resulted in net profit of Rs.10.390 millions as against net profit of Rs.9.508 millions in the previous year. The directors are very optimistic about enhancing the sales and earn more profits in the coming year.

 

CONTINGENT LIABILITY:

 

The company has issued following bank guarantees which has not been provided for in the books of accounts

 

In the Favor of

31.03.2012

(Rs. in millions)

1 Chief Engineer, EHC C.C. O&M Zone MSETCL

0.302

2 Chief Conservator of Forest Working Plan Circle

0.018

3 Additional Principal Chief Conservator of Forest

0.014

4 National Institute of Miners Health, JNARCD

0.011

5 The Superintending Engineer (MSETCL)

0.086

Total

0.431

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U72900MH1994PTC080566

Name of the company

BUSINESS ALGORITHMS PRIVATE LIMITED

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

39, Shankar Nagar, Nagpur – 440 010, Maharashtra, India

E-Mail: customer@balgo.com

This form is for

Modification of charge

Charge identification number of the modified 

90349849

Type of charge

Immovable Property

Book Debts

Movable Property (not being pledge)

Floating Charge

Particular of charge holder

Business Algorithms Private Limited, SMECCC, Shraddhanand Peth, Nagpur – 440 022, Maharashtra, India

E-Mail: mca21@in.com

Nature of description of the instrument creating or modifying the charge

Letter of Arrangement (SME-1)

Date of instrument Creating the charge

28.06.2012

Amount secured by the charge

Rs.0.500 million

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

Rate of Interest:

3.5% above base rate present effective being 13.50% with monthly rests.

 

Terms of Repayment:

On Demand.

 

Margin:

Domestic Receivables: 20%

 

Extent and Operation of the charge:

The charge operates as a security on the assets of the Company.

Short particulars of the property charged

Hypothecation of stock, book debts and other current assets.

Particulars of the present modification 

By way of present modification cash credit facilities of Rs.3.500 millions have been reduced by Rs.3.000 millions. Thus total credit facilities stand at Rs.0.500 million.

 

FIXED ASSETS:

 

Tangible Assets

v  Land

v  Building

v  Vehicles

v  Computers

v  Equipments

v  Electrical Equipments

v  Tools

v  Plant and Machinery

v  Furniture

Intangible Assets

v  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.54.34

UK Pound

1

Rs.87.09

Euro

1

Rs.70.13 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

50

 

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.