MIRA INFORM REPORT

 

 

Report Date :

24.07.2012

 

IDENTIFICATION DETAILS

 

Name :

RADHA MADHAV CORPORATION LIMITED

 

 

Registered Office :

Survey No. 50/9A, Daman Industrial Estate, Village Kadaiya, Nani Daman, Daman and Diu – 396210, India

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

07.01.2005

 

 

Com. Reg. No.:

03-003775

 

 

Capital Investment / Paid-up Capital :

Rs.325.384 Millions

 

 

CIN No.:

[Company Identification No.]

L74950DD2005PLC003775

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer and Exporter of Flexible Plastic Packaging Products, Paper Cone, Paper Products for Computers and Containers and Boxes of paper. 

 

 

No. of Employees:

600 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1952920

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears some dip in the sales turnover of the company. It has incurred heavy loss during 2011. Accumulated losses recorded by the company seems to be increasing over years.

 

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

 

The company can be considered for business dealings with some caution.

 

NOTES:

 

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

 

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.09.2011)

Current Rating

(31.12.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

RBI DEFAILTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAILTERS’ 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 (GENERAL DETAILS)

 

Name :

Mr. R K Mishra

Designation :

Director

Contact No.:

91-9377547065

Date :

19.07.2012

 

 

LOCATIONS

 

Registered Office :

Survey No. 50/9A, Daman Industrial Estate, Village Kadaiya, Nani Daman, Daman and Diu – 396210

Tel. No.:

91-260-6619000

Fax No.:

91-260-2220177

E-Mail :

rkmishra@rmcindia.co.in 

Website :

www.rmclindia.co.in

 

 

Mumbai Office :

20, Patel Building, 2nd Floor, Dadi Sheth Agiary Lane, Kalbadevi Road, Mumbai - 400002

Tel. No.:

91-22-22403209

Fax No.:

91-22-22418436

 

 

Uttaranchal Site :

Radha Madhav Corporation Limited, SIDCUL Plot No.66, Sector 4 IIE, Pantnagar, Rudrapur District, Udhamsingh Nagar, Uttaranchal, India

 

 

International Offices :

Located at:

 

·         U.S.A.

·         U.K.

·         France

·         Russia

·         Dubai

·         Bangladesh

 

 

Factory :

1. Unit I - Survey No. 51/3C, 541 B & 54/2, Daman Industrial Estate, Kadaiya Daman

 

2. Unit II - Survey No. 50/9A Daman Industrial Estate, Kadaiya Daman

 

3. Unit III - Survey No. 54/3A & 54/2D, Daman Industrial Estate, Kadaiya Daman

 

4. Unit IV- Survey No. 1 07/2, 1 08/1 & 108/2 Daman Industrial Estate, Kadaiya Daman.

 

5. Uttaranchal Unit - SIDCUL, Plot No.66, Sector 4IIE, Pantnagar, Rudrapur, dist. Udhamsingh Nagar, Uttaranchal- India

 

 

 

\Branches :

Located at :

  • Bangalore
  • Chennai
  • Delhi(New Kondil, Mayur Vihar)
  • Delhi (Pitampura)
  • Hyderabad
  • Jaipur
  • Kolkata
  • Ludhiana

 

 

DIRECTORS

 

AS ON 25.09.2011

 

Name :

Mr. Anil J. Agrawal

Designation :

Chairman

 

 

Name :

Mr. Mitesh A. Agrawal

Designation :

Managing Director and CEO

 

 

Name :

Mr. Abhishek Agrawal

Designation :

Jt. Managing Director

 

 

Name :

Mr. Kanubhai Patel

Designation :

Director

 

 

Name :

Mr. S. P. Aggarwal

Designation :

Director

 

 

Name :

Mr. Binod Kumar Paliwal

Designation :

Director

 

 

Name :

Mr. Serge A Lapointe

Designation :

Director

 

 

Name :

Mr. Radhey Krishna Mishra

Designation :

Director

 

 

Name :

Mr. Rajiv Prasankumar Nanavati

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Mangesh Shetye

Designation :

Company secretary and Compliance officer

 

 

Name :

Jagdish Patel and Company

Designation :

Company secretaries in practice

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 31.03.2012)

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

7323947

22.52

 

 

 

(2) Foreign

 

 

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Foreign Institutional Investors

100

--

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

1897131

5.83

 

 

 

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 millions

9332867

28.69

Individual shareholders holding nominal share capital in excess of Rs. 0.100 millions

9035075

27.77

 

 

 

Any Others (Specify)

 

 

Clearing Members

476370

1.46

Non Resident Indians

457765

1.41

Foreign Corporate Bodies

4004910

12.31

Trusts

2700

0.01

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

--

--

Total

32538400

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Flexible Plastic Packaging Products, Paper Cone, Paper Products for Computers and Containers and Boxes of paper. 

 

 

Products :

Product

ITC Code

Principal Products / Services of Company

3132

Packaging Products of Plastic

2822

Paper Core

2831

Special Purpose Paper / Paper Products

2810

 

 

Exports :

 

Products :

Flexible Plastic Packaging Products, Paper Cone, Paper Products for Computers and Containers and Boxes of paper. 

Countries :

·         United State of America

·         United Kingdom

·         Middle East

 

 

Imports :

 

Products :

Raw Material

Countries :

·         China

·         Korea

·         Germany

 

 

Terms :

 

Selling :

L/C, Cash, Credit 

 

 

Purchasing :

L/C, Cash, Credit 

 

 

GENERAL INFORMATION

 

Bankers :

State Bank of India, Vapi IT. Branch, Vapi

 

 

 

 

Facilities :

SECURED LOANS

(AS ON 31.03.2011)

RS. IN MILLIONS

(AS ON 31.03.2010)

RS.  IN MILLIONS

Term Loan

 

 

From Banks

(Secured against mortgage of Land and Building and Hypothecation of all movable Plant and Machinery, inventory, Book Debts and Motor Cars.

This loan is secured by personal guarantee of promoter directors.)

(Installment repayable within One year Rs. 53.100 Millions (Previous Year Rs.184.900 Millions)

1203.321

789.110

From Non banking Finance Companies

(Secured by Hypothecation of Motor Car Charges are in the process of being Registered with Registrar of Companies.) (Installment repayable within One year Rs. 2.200 Millions (previous Year 2.600 Millions)

5.831

5.954

Demand Loan

 

 

From Banks

(Secured against mortgage of Land and Building and Hypothecation of all movable Plant and Machinery, inventory, Book Debts and Motor Cars. This loan is secured by personal guarantee of promoter directors.)

(Installment repayable within One year Rs.2.800 Millions (Previous Year Rs.89.300 Millions)

50.187

89.349

Working Capital Loan from Nationalised Bank

(Secured against mortgage of Land and Building and Hypothecation of all movable Plant and Machinery, inventory and Book Debts.

This loan is secured by personal guarantee of promoter directors.)

827.684

828.733

Total

2087.024

1713.146

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

H.P.Shah Associates

Chartered Accountant

 

 

Name of the Company / Firm:
  • Abhishek Packaging Industries
  • Maharastra Polycane Industries
  • Radha Madhav Research and Trade Limited
  • Print Rite
  • Siddharth Plastic Industries
  • Plastic Corporation
  • Mamta Steel
  • Mehsana Steel Suppliers
  • Mahavir Steel Suppliers
  • Abias Export Private Limited
  • Swati Packaging
  • Radha Krishna Industries
  • Radha Madhav Residency
  • Radha Madhav Holdings Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 25.09.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

33000000

Equity Share

Rs.10/- each

Rs.330.000 Millions

6000000

Preference Share

Rs.10/- each

Rs.60.000 Millions

 

Total

 

Rs.390.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

32538400

Equity Share

Rs.10/- each

Rs.325.384 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

325.384

325.384

325.384

2] Warrants Money

0.000

0.000

28.537

3] Share Application Money

0.000

0.000

0.000

4] Reserves & Surplus

946.727

946.727

1145.691

5] (Accumulated Losses)

(783.881)

(251.951)

0.000

NETWORTH

488.230

1020.160

1499.612

LOAN FUNDS

 

 

 

1] Secured Loans

2087.024

1713.146

1651.291

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

2087.024

1713.146

1651.291

DEFERRED TAX LIABILITIES

59.123

59.123

59.123

 

 

 

 

TOTAL

2634.377

2792.429

3210.028

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1860.712

1945.093

2003.183

Capital work-in-progress

30.988

31.307

50.633

 

 

 

 

INVESTMENT

2.550

2.550

2.550

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
599.438
643.283

713.647

 

Sundry Debtors
462.093
566.827

544.787

 

Cash & Bank Balances
33.611
37.578

22.007

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
216.170
131.136

209.986

Total Current Assets
1311.312
1378.824

1490.427

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditor
263.429
280.121

219.625

 

Other Current Liabilities
306.126
279.085

106.358

 

Provisions
1.630
10.747

10.782

Total Current Liabilities
571.185
565.345

336.765

Net Current Assets
740.127
813.479

1153.662

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2634.377

2792.429

3210.028

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

1052.218

1528.288

1613.845

 

 

Other Income

4.219

3.691

4.700

 

 

TOTAL                                     (A)

1056.437

1531.979

1618.545

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumption and Inventory Adjustment

964.107

1294.715

1126.136

 

 

Expenditure on Employee

71.901

69.759

55.530

 

 

Manufacturing Expenses

119.301

143.369

138.909

 

 

Administrative, General and Selling Expenses

83.484

165.424

80.831

 

 

TOTAL                                     (B)

1238.793

1673.267

1401.406

 

 

 

 

 

Less

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

(182.356)

(141.288)

217.139

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

217.376

203.637

123.484

 

 

 

 

 

 

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

(399.732)

(344.925)

93.655

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

136.968

131.701

85.558

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(536.701)

(476.626)

8.097

 

 

 

 

 

Less

TAX                                                                  (H)

1.097

2.828

              3.533

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

(537.798)

(479.454)

4.564

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(251.951)

227.502

226.530

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Preference Share Dividend (Including Dividend tax)

(5.868)

0.000

3.592

 

BALANCE CARRIED TO THE B/S

(783.882)

(251.952)

227.502

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

59.911

61.870

46.223

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Spares Parts

2.022

0.884

3.234

 

 

Capital Goods

0.000

1.770

135.320

 

 

Raw Materials

157.901

125.210

207.717

 

TOTAL IMPORTS

159.923

127.864

346.271

 

Earnings Per Share (Rs.)

(16.53)

(14.75)

6.52

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2011

1st Quarter

30.09.2011

2nd Quarter

31.12.2011

1st Quarter

31.03.2012

2nd Quarter

Net Sales

301.370

396.280

266.820

130.950

Total Expenditure

321.910

377.620

274.520

194.280

PBIDT (Excl OI)

(20.540)

18.660

(7.700)

(63.330)

Other Income

0.400

1.280

1.530

1.460

Operating Profit

(20.140)

19.940

(6.700)

(61.870)

Interest

64.670

67.050

74.420

66.300

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

(64.810)

(47.110)

(80.590)

(128.170)

Depreciation

34.800

34.740

34.920

34.280

Profit Before Tax

(119.610)

(81.850)

(115.510)

(162.450)

Tax

0.010

0.010

0.140

0.050

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

(119.620)

(81.860)

(115.640)

(152.450)

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

(119.620)

(81.860)

(115.640)

(152.450)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
(50.91)
(31.30)

0.28

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
(51.01)
(31.19)

0.50

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(16.92)
(14.35)

0.23

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
(1.10)
(0.47)

0.01

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
5.44
2.23

1.33

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.30
2.45

4.43

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

CONTINGENT LIABILITY NOT PROVIDED FOR

 

Particulars

Rs. (In millions) –

31-03-2011

Guarantees given by Banks

48.274

Estimated amount of contract remaining to be executed on capital

Account and not provided for (net of Advances)

0.136

Disputed Liability of Central Excise Duty. Dispute pending with

Customs Excise & Service Tax Appellate Tribunal, Ahmedabad

15.359

Duty liability with respect to capital goods imported under

EPCG Scheme. (against balance export obligation)

182.319

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENT, OUTLOOK:

 

Technology based products and control over distribution channel is dream that companies worldwide cherish. Brands and its recognition take years to build. Hi-end Barrier Packaging and allied Hi-technology industry like adhesives/sealants and barrier yielding chemicals have tremendous scope in diverse climatic condition like theirs.

Pharmaceutical/ Food and other high end barrier packaging industry grew at substantial rate in the previous year. Opportunities in adopting to new challenges have been very high and is expected to grow further.

 

OUTLOOK OF THE COMPANY:

 

Almost 150 products were developed on extremely robust technology platform of PVDC/PVOH coatings, PA/EVOH extrusion, Mono and Tentre Frame Orientation and metal deposition. Technology platform of the company stands Sturdy and unparallel in the Indian Context. This technology platform is highly Capital intensive and integrated. Their industry does not face technology absolution and general life-span of their technology is 100 years. Their internal estimate of this production platform is 2300.000 Millions which is very modest when compared to their competitors. Most of their competitors world-wide have spent first 10 years of its life in establishing its technology, creating its product portfolio and introducing its brands.

 

For their Shareholders, they understand that such situation is not normal and they expect the process to be expedited. They are deeply concerned for such delays/ losses in the company and have tried their best to cope up with the situation. Company, unfortunately booked a loss of 538.000 Millions in this year and approximately 1000.000 Millions in last 8 quarters. Losses had been mainly because of lack of working capital and interest burden. However as the going was getting tough, the tough was also getting past. They are firm believer of the fact that however such situation is common in their global industry but is unacceptable in India. Average life-span of their global competitor is between 100-150 years whereas this is not the situation in developing economies like theirs. They still want to reaffirm that the company is at nascent and childhood stage and long tenure of such stage projects the long life span of the company.

 

The company has been sanctioned various credit limits from its existing banks and the infusion of money has been started from May 2011. They are sure that with infusion of working capital the company will do exceedingly well in the current year.

 

STRENGTHS:

 

•          The Company has a large installed capacity to meet the demand at any point of time.

•          The company is among the few companies in India offering different types of flexible packaging solutions to suit the requirements of the customers. This enables customers to reduce the number of vendors which is in line with the present trend.

•          Technically qualified and well experienced promoters.

•          Well equipped manufacturing facilities.

•          Past track record of successful operation.

•          The company has a well planned marketing net work and a good clientele base of about 2000 clients, with continuous and repeat orders.

 

WEAKNESSES:

 

•          The Company caters to a very large customer base. This increases the selling costs. Since each order value is small, the production costs and inventory levels are higher.

•          The Company has to face competition from the existing large companies and also from imports.

 

OPPORTUNITIES:

 

•          The products of the company find major application in FMCG, Pharmaceuticals and Dairy industry, which have attractive growth prospects.

•          Opening up of retail sector has increased the packaging requirement.

•          Manufacturers all over the world are trying to increase the shelf life of their products. This has resulted in the demand for the speciality packaging material.

 

THREATS:

 

•          Political decisions: The raw materials used are all plastics which are not bio degradable. In case of policies to restrict the use and manufacture of plastics, the company would be adversely affected.

•          Technological developments: Any future developments of new packaging materials like bio plastics etc may replace the use of plastics and affect the performance of the company.

 

MITIGATING FACTORS:

 

The Company is in the process of analyzing its product/market matrix and intends to concentrate on big ticket orders in order to reduce costs and increase profitability. The multi product multi technology situation enables the company to win over the competition. The tax concessions are also expected to aid the company in pricing its products competitively.

 

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 :

Their 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.

 

Their 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.55.76

UK Pound

1

Rs.86.80

Euro

1

Rs.67.43

 

 

INFORMATION DETAILS

 

Information Gathered by :

SBA

 

 

Report Prepared by :

SDA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

26

 

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.