MIRA INFORM REPORT

 

 

Report Date :

13.12.2012

 

IDENTIFICATION DETAILS

 

Name :

REAL ISPAT AND POWER LIMITED (w.e.f. 06.05.2005)

 

 

Formerly Known As :

REAL ISPAT LIMITED

 

 

Registered Office :

Village Borjhara, Urla-Bendri Road, P.O. Urla, Raipur – 493 221, Chhattisgarh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

04.10.1999

 

 

Com. Reg. No.:

10-013773

 

 

Capital Investment / Paid-up Capital :

Rs.290.220 millions

 

 

CIN No.:

[Company Identification No.]

U27107CT1999PLC013773

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BPLR02000F

 

 

PAN No.:

[Permanent Account No.]

AABCR9986L

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Sponge Iron, Billets, MS Ingots and Structural Steel.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 6200000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is well established and reputed company having satisfactory track.

 

The latest financial is missing from Government Department. As per previous year track record company seem to be having good track. Financially company appears to be strong. Performance capacity is high.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered 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.

 

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

ICRA

Rating

BBB+ (Term Loan)

Rating Explanation

Having moderate degree of safety regarding timely servicing of financial obligation is carry moderate credit risk.

Date

April, 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/ Factory 1 :

Village Borjhara, Urla-Bendri Road, P.O. Urla, Raipur – 493 221, Chhattisgarh, India 

Tel. No.:

91-771-6541001-5

Fax No.:

91-771-4224009

E-Mail :

Sales and Marketing Division - steel@gktmt.com

HRD - hr@gktmt.com

company_corporate@yahoo.com

real@realispat.com

Website :

http://www.gktmt.com

 

 

Corporate Office :

"Vrindavan", Near IDBI Bank, Civil Line, Raipur – 492 001, Chhattisgarh, India

Tel. No.:

91-771-4224000

Fax No.:

91-771-4224010/ 2445510

E-Mail :

real@realispat.com

Website :

www.realispat.com

 

 

Factory 2 :

315-321, Urla Industrial Area, Raipur – 493 221, Chhattisgarh, India

Tel. No.:

91-771-3051000

Fax No.:

91-771-3051010

E-Mail :

steel@gktmt.com

 

 

Factory 3 :

Khamhardih (Rambode), Block-Patharia, District Bilaspur, Chhattisgarh, India

Tel. No.:

91-7752-646005/ 6

Fax No.:

91-7752-217376

E-Mail :

nripl@yahoo.co.in

 

 

Factory 4 :

Village Bharatpur, Tahasil Bhatapara, District Raipur, Chhattisgarh, India

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Umesh Tarachand Agrawal

Designation :

Managing Director

Address :

Opposite Telephone Exchange, Civil Lines, Raipur – 492 001, Chhattisgarh, India

Date of Birth/Age :

20.01.1964

Qualification :

B.Sc., LLB

Date of Appointment :

04.10.1999

DIN No.:

00017300

 

 

Name :

Mr. Shiv Kumar Agrawal

Designation :

Whole-Time Director

Address :

C/14A, Sector-02, Devendra Nagar, Raipur – 492 001, Chhattisgarh, India

Date of Birth/Age :

27.08.1973

Qualification :

BE (elc.) PGDC, EA, BDE

Date of Appointment :

31.03.2005

DIN No.:

00491176

 

 

Name :

Mr. Nilesh Jain

Designation :

Director

Address :

H.No.E-201, Rishabh Enclave, Amlidih, Raipur – 492 001, Chhattisgarh, India

Date of Birth/Age :

08.04.1973

Qualification :

FCA , B.com

Date of Appointment :

26.03.2010

DIN No.:

03012127

 

 

Name :

Mr. Basant Kumar Agrawal

Designation :

Director

Address :

H.No.203, Charoda, Raipur, Chhattisgarh, India

Date of Birth/Age :

20.12.1971

Qualification :

B. Com

Date of Appointment :

30.09.2010

DIN No.:

00371251

 

 

KEY EXECUTIVES

 

Name :

Mr. Ravi Mall

Designation :

Secretary

Address :

50/632, Near Talab, Lakhe Nagar, Raipur – 492 013, Chhattisgarh, India

Date of Birth/Age :

14.12.1981

Date of Appointment :

20.01.2010

PAN No.:

ASBPM5210B

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

 

Umesh Tarachand Agrawal

 

809264

Ramesh Kumar Tarachand Agrawal

 

246636

Tarachand Moolchand Agrawal

 

180000

Rekha Umesh Agrawal

 

140000

Shradha Rajesh Agrawal

 

255000

Sudha Ramesh Agrawal

 

930000

Vimla Tarachand Agrawal

 

255000

Tarachand Agrawal (HUF) 

 

50050

Ramesh Agrawal (HUF) 

 

2539413

Umesh Agrawal (HUF) 

 

2781000

Rajesh Agrawal (HUF) 

 

2042273

Ajay Steels Private Limited, India

 

4744091

R.K. Sponge Private Limited, India

 

6284545

Basant Agrawal

 

79773

Seema Ajay Agrawal

 

47500

Om Ispat (India) Private Limited, India

 

4750000

Rajesh Tarachand Agrawal

 

2000000

Dinpati Commercials Private Limited, India

 

887500

Total

 

29022045

 

As on 30.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

57.43

Directors or relatives of directors

 

17.03

Other top fifty shareholders

 

25.54

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Sponge Iron, Billets, MS Ingots and Structural Steel.

 

 

Products/ Services :

Item Code No. (ITC Code)

3,309

Product Description

TMT Bar

Item Code No. (ITC Code)

3,303

Product Description

Sponge Iron, Billet

Item Code No. (ITC Code)

4,002

Product Description

Power

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

 

Installed capacity (*)

- Sponge iron and allied products

200 TPD

-Re-rolled Products

200000 MT

-Induction Furnace

112000 MT

- Power

12 MW

 

(*) Installed capacity is as certified by the management and not verified by the auditors being a technical matter.

 

Units (MT)

Particulars

 

Production/ Purchase

Sponge iron

50,735.000

Iron ore fines

27,434.490

TMT Bars(borjhara)

17,421.780

TMT Bars (urla)

66,487.489

Waste & Scrap(Urla)

2,133.203

Waste & Scrap(Borjhara)

828.230

Ingot

37,026.830

Fly Ash Bricks

89,804

Runner Riser

1,110.930

Dolochar

10,122.000

End cutting

--

Power

106,125,784

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

v  State Bank of India, Commercial Branch, Bairan Bazar, Raipur – 492 001, Chhattisgarh, India

v  Bank of Rajasthan

v  ICICI Bank Limited

v  IDBI Bank Limited

v  State Bank of India, Mumbai, Maharashtra, India

v  HDFC Bank Limited

v  State Bank of India, Commercial Branch, Pujari Chambers, Pachpedi Naka, Raipur – 492 001, Chhattisgarh, India

v  Kotak Mahindra Bank Limited

 

 

Facilities :

Secured Loans

31.03.2011

(Rs. in Millions)

31.03.2010

(Rs. in Millions)

Rupee term loans banks secured

113.159

15.696

Foreign currency loans banks secured

28.669

69.992

Working capital loans banks secured

255.668

188.478

Loans taken for vehicles secured

1.804

0.012

Total

399.300

274.178

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Rajesh J Agrawal and Company

Chartered Accountants

Address :

House No.3, Padmini Enclave, Khamardih Road, Near Ashok Park, Shankar Nagar, Raipur – 492 001, Chhattisgarh, India

Tel. No.:

91-771-4032170/ 180

E-Mail :

info@rajeshjagrawal.com

Website :

www.rajeshjagrawal.com

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

AAIFR5780L

 

 

Subsidiaries :

Real Power Private Limited, India (CIN No.: U27109CT2004PTC016578)

 

 

CAPITAL STRUCTURE

 

As on 30.09.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

33500000

Equity Shares

Rs.10/- each

Rs.335.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

29022045

Equity Shares

Rs.10/- each

Rs.290.220 millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

290.220

281.346

56.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1259.883

1021.249

803.189

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1550.103

1302.595

859.189

LOAN FUNDS

 

 

 

1] Secured Loans

399.300

274.178

169.830

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

399.300

274.178

169.830

DEFERRED TAX LIABILITIES

36.812

35.575

37.128

 

 

 

 

TOTAL

1986.215

1612.348

1066.147

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

572.508

397.244

367.429

Capital work-in-progress

106.648

126.811

9.770

 

 

 

 

INVESTMENT

255.948

246.788

248.630

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
423.001

314.967

127.257

 

Sundry Debtors
364.049

222.095

102.878

 

Cash & Bank Balances
46.423

15.999

59.610

 

Other Current Assets
71.558

72.686

0.000

 

Loans & Advances
311.690

380.147

283.700

Total Current Assets
1216.721

1005.894

573.445

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
0.000

0.000

55.275

 

Other Current Liabilities
150.751

135.313

7.313

 

Provisions
37.075

35.762

70.618

Total Current Liabilities
187.826

171.075

133.206

Net Current Assets
1028.895

834.819

440.239

 

 

 

 

MISCELLANEOUS EXPENSES

22.216

6.686

0.079

 

 

 

 

TOTAL

1986.215

1612.348

1066.147

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Operating revenue, net

3837.532

2872.184

1660.301

 

 

Other Income

39.421

77.199

47.629

 

 

TOTAL                                     (A)

3876.953

2949.383

1707.930

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

3182.821

2205.195

1119.718

 

 

Manufacturing service costs

188.159

185.626

 

 

 

Employee related expenses

61.684

43.099

 

 

 

Administrative selling other expenses

77.747

54.276

 

 

 

TOTAL                                     (B)

3510.411

2488.196

1119.718

 

 

 

 

 

Less

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

366.542

461.187

588.212

 

 

 

 

 

Less

INTEREST FINANCIAL EXPENSES                   (D)

23.407

19.811

22.289

 

 

 

 

 

 

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

343.135

441.376

565.923

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

76.235

72.116

73.383

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

266.900

369.260

492.540

 

 

 

 

 

Less

TAX                                                                  (H)

54.892

57.149

53.499

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

212.008

312.111

439.041

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

891.300

638.399

199.358

 

 

 

 

 

Less

Issue of Bonus Shares

0.000

59.210

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

1103.308

891.300

638.399

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

Nil

Nil

31.866

 

 

 

 

 

 

Earnings Per Share (Rs.)

7.48

11.09

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
5.47

10.58

25.71

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
6.95

12.86

29.67

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
14.92

26.32

52.35

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.17

0.28

0.57

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.38

0.34

0.35

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
6.48

5.88

4.30

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

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

 

 


Note:

The registered office of the company has been shifted from Vrindavan Building, Holly Hearts School, Civil Line, Raipur – 492 001 C.G., Madhya Pradesh to the present address w.e.f. 15.05.2006.

 

Increase in Authorised Share Capital:

Pursuant to the merger of Gaurav Krishna Ispat (India) Private Limited, into the company through order of the hon’ble High Court of Chhattisgarh, Bilaspur, dated 17th August, 2010 the Authorised Share Capital of Rs.35.000 millions, of Gaurav Krishna Ispat (India) Private Limited was also added to that of the company’s Authorised Capital of Rs.300.000 millions, and therefore the authorized share capital of the company stands increased to Rs.335.000 millions.

 

Increase in Paid-up Capital:

 

The company in accordance with the scheme of amalgamation of Gaurav Krishna Ispat (India) Private Limited into the company allotted 1 fully paid up equity share of Rs.10/- each, in the company against every 11 fully paid up equity shares held by the shareholders of Gaurav Krishna Ispat (India) Private Limited, in Gaurav Krishna Ispat (India) Private Limited. A total of 134545 fully paid up equity shares of Rs.10/- each were thus issued by the company to the erstwhile shareholders of Gaurav Krishna Ispat (India) Private Limited.

 

The company also allotted 887500 equity shares of Rs.10/- each, at a premium of Rs.30/- per share, during the financial year.

 

Expansion plans:

 

IRON ORE MINES

Prospecting work for iron ore mine at District Kabirdham, Chhattisgarh, is almost complete. However, the company has filed a writ petition in the hon’ble High Court of Delhi, against allotment of iron ore mines in the same area to SKS Ispat and Power Limited and Kalindi Power and Steel Limited, in an arbitrary manner. The case is still under consideration of the hon’ble High Court of Delhi.

 

MINI INTEGRATED STEEL PLANT

The process of land acquisition and obtaining statutory approvals is on and the company has already obtained Environment Clearance from the Ministry of Environment and Forest; clearance from Chhattisgarh Environment Conservation Board; and approval for land diversion from land diversion department for its proposed mini integrated steel plant at Bhatapara.

 

ROLLING MILL

The 400 TPD capacity Rolling Mill with state of the art facilities for manufacturing of TMT Bars, Wire Rods and HB Wires at Borjhara, which was at erection stage during the previous financial year has started functioning during the financial year.

 

ACQUISITION

The company has acquired more than 48% stake in Shivalay Ispat and Power Private Limited, a company engaged in the production of sponge iron with capacity of 300 TPD. It is proposed to increase the company’s stake in Shivalay Ispat and Power Private Limited.

 

FIXED ASSETS:

 

v  Land and Land Improvements

v  Building and Building Improvements

v  Plant Machinery

v  Equipments

v  Computer Equipments

v  Other Equipments

v  Furniture Fixtures

v  Vehicles

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.27

UK Pound

1

Rs.87.43

Euro

1

Rs.70.55

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

45

 

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.