MIRA INFORM REPORT

 

 

Report Date :

30.07.2012

 

IDENTIFICATION DETAILS

 

Name :

SANGHAVI EXPORTS INTERNATIONAL PRIVATE LIMITED (w.e.f. 16.04.2007)

 

 

Formerly Known as:

SANGHAVI EXPORTS (PARTNERSHIP)

 

 

Registered Office :

502, Prasad Chambers, Tata Road No.2, Opera House, Mumbai – 400004, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

16.04.2007

 

 

Com. Reg. No.:

170013

 

 

Capital Investment / Paid-up Capital :

Rs.242.000 Millions

 

 

CIN No.:

[Company Identification No.]

U36911MH2007PTC170013

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Diamonds

 

 

No. of Employees :

1500 (Approximately)

 

 

 

 

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 10200616

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject was established as a partnership concern in the year 1984 with the name ‘Sanghavi Exports’ and Later it converted into private company in the year 2007 with the name ‘ Sanghavi Exports International Private Limited’.

 

It is an established company having satisfactory track. Profitability appears to be low.

 

However, trade relations are reported as decent. 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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

BBB (Long Term Bank Facilities)

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

13.12.2011

 

 

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

 

Name :

Mr. Sandeep

Designation :

Accounts Manager

Contact No.:

91-22-23643998

Date :

30.07.2012

 

 

LOCATIONS

 

Registered Office :

502, Prasad Chambers, Tata Road No.2, Opera House, Mumbai – 400004, Maharashtra, India

Tel. No.:

91-22-23643998

Fax No.:

91-22-23632033

E-Mail :

sjalan@rediffmail.com

Location :

Owned

 

 

Branches :

402, Mehta Mahel Opera House, Mumbai – 400004, Maharashtra, India

 

 

DIRECTORS

 

AS ON 30.09.2011

 

Name :

Mr. Chandrakantbhai Ravchandbhai Sanghavi

Designation :

Director

Address :

25/252 Pariki Plot No.1, Behind Tribhuvan Complex, Athwalines, Surat – 395007, Gujarat, India

Date of Birth/Age :

06.12.1951

Date of Appointment :

16.04.2007

 

 

Name :

Mr. Ketankumar Kirtilal Sanghavi

Designation :

Director

Address :

1301, Chandanbala, 13th Floor, Ratilal Thakkar Marg, Walkeshwar, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

02.06.1972

Date of Appointment :

16.04.2007

 

 

Name :

Mr. Rameshchandra Ravchandbhai Sanghavi

Designation :

Director

Address :

3, Sanghavi Bunglow, Nr. Indoor Stadium,Tribhuvan Complex, Ghod Dod Road,

Dist., Surat - 395002, Gujarat, India

Date of Birth/Age :

29.08.1949

Date of Appointment :

16.04.2007

 

 

Name :

Mr. Kalpesh Vasantlal Sanghavi

Designation :

Director

Address :

19, Kailash Niketan Society, 24, l. D. Ruparel Marg, Walkeshwar, Mumbai- 400006, Maharashtra, India

Date of Birth/Age :

01.06.1968

Date of Appointment :

16.04.2007

 

 

Name :

Mr. Kirtilal Ravchandbhai Sanghavi

Designation :

Director

Address :

Sy no. 2369 / 7 2369 / 8 Ep 251 252 Paiy, plot 4 b / h Tribuuvan Complex Athwalines, Surat - 395002, Gujarat, India

Date of Birth/Age :

02.11.1947

Date of Appointment :

16.04.2007

 

 

Name :

Mr. Jayesh Vasantlal Sanghavi

Designation :

Director

Address :

19, Kailash Niketan Society, 24, l. D. Ruparel Marg, Walkeshwar, Mumbai- 400006, Maharashtra, India

Date of Birth/Age :

08.10.1974

Date of Appointment :

16.04.2007

 

 

Name :

Mr. Virendrakumar Kirtilal Sanghavi

Designation :

Director

Address :

1 vir Ratna Bunglow No. 1, Tribhuvan Complex, Opp. Indor Stadium Ghodhar Road, Surat -395007, Gujarat, India

Date of Birth/Age :

25.05.1979

Date of Appointment :

16.04.2007

 

 

Name :

Mr. Aagam Chandrakantbhai Sanghavi

Designation :

Director

Address :

Aagaman Sanghavi Bunglow - 2, Opp - Indoor Stadium, Athwalines, Surat -395007, Gujarat, India

Date of Birth/Age :

18.11.1983

Date of Appointment :

16.04.2007

 

 

KEY EXECUTIVES

 

Name :

Mr. Sandeep

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

Names of Shareholders

 

No. of Shares

Chandrakantbhai Ravchandbhai Sanghavi

 

1100000

Chandrakantbhai Ravchandbhai Sanghavi (HUF)

 

3520000

Ketankumar Kirtilal Sanghavi

 

880000

Kirtilal Ravchandbhai Sanghavi

 

440000

Kirtilal Ravchandbhai Sanghavi (HUF)

 

3520000

Virenkumar Kirtilal Sanghavi

 

660000

Rameshchandra Ravchandbhai Sanghavi

 

660000

Rameshchandra Ravchandbhai Sanghavi (HUF)

 

3960000

Sanghavi Family Trust (HUF)

 

660000

Jayesh Vasantlal Sanghavi

 

616000

Kalpesh Vasantlal Sanghavi

 

616000

Sanghavi Jewellery Manufacturing Private Company Limited, Mumbai

 

4180000

Vasantlal Ravchandbhai Sanghavi (HUF)

 

1100000

Roseate Trading Private Limited, Mumbai

 

1000000

Cohort Mercantile Private Limited, Mumbai

 

1000000

Cupidity Trading Private Limited, Mumbai

 

200000

Bhartiben V. Sanghavi

 

88000

Total

 

24200000

 

AS ON 30.09.2011

 

Category

Percentage

Bodies corporate

26.36

Directors or relatives of Directors

20.91

Other top fifty shareholders

52.73

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Diamonds

 

 

Terms :

 

Selling :

Cash, Credit 

 

 

Purchasing :

Cash, Credit 

 

 

GENERAL INFORMATION

 

Suppliers :

Waregem, Belgium

 

 

Customers :

·         Wholesalers

·         Retailers

·         Sanghavi Diamond Inc, New York

 

 

No. of Employees :

1500 (Approximately)

 

 

Bankers :

·         Bank of India, Opera House Branch , Hermes House , Mama Parmanand Marg , Opera House, Mumbai - 400004, Maharashtra, India

·         Allahabad Bank, International Branch, T/4 , World Trade Centre , 2nd Floor ,Cuffe Parade,, Mumbai - 400005, Maharashtra, India

 

 

Facilities :

 

SECURED LOAN

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Working capital loans banks secured

5072.301

5713.690

Loans taken for vehicles secured

1.402

0.648

TOTAL

5073.703

5714.338

 

Footnotes

(A) Packing credit (PC/PCFC) 2179481524 Post shipment credit (PSC/PSCFC) 2892819819 (Working capital loans are secured against

hypothecation of stock, stock-in-proces, receivables etc and collateral secuirty held on pari passu with consortium members and personal

guarantees of directors, shareholders and property owners.)

(B) Packing credit (PC/PCFC) 2208299331 Post shipment credit (PSC/PSCFC) 3505391498 (Working capital loans are secured against

hypothecation of stock, stock-in-proces, receivables etc and collateral secuirty held on pari passu with consortium members and personal

guarantees of directors, shareholders and property owners.)

 

UNSECURED LOAN

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Loans directors unsecured

75.413

121.150

Other debt unsecured

195.482

165.421

TOTAL

270.895

286.571

 

Footnotes

(A) From shareholders 191439758 From relatives of directors/shareholders 0 From others 4042063 (The above loan have no fixed

repayment schedule)

(B) From shareholders 157786225 From relatives of directors/shareholders 3600000 From others 4034227 (The above loan have no fixed

repayment schedule)

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

J. K. Shah and Company

Chartered Accountant

Address :

3rd Floor, Flat No. 14, Al-Karim Manzil, 15, Palton Road, Mumbai – 400001, Maharashtra, India

 

 

Subsidiaries :

·         Sanghavi Diamonds Manufacturing Private Limited

·         Sanghavi Diamonds Private Limited

·         Sanghavi Star Retail Private Limited

·         Sanghavi Exports (Israel) Private Limited

·         Sanghavi Jewels Private Limited

·         Sanghavi Exports Limited (Hong Kong)

·         Royal Estate Holding Private Limited

 

 

Fellow subsidiaries:

·         Sanghavi Jewellery , Tokyo

·         Sanghavi Diamonds Inc, New York

·         Sanghavi Diamonds Inc, LA

·         Sanghavi Fareast Pte Limited,

·         Singapore Rare Gems BVBA, Antwerp

·         Sanghavi Diamond (Shanghai) Co Limited

 

 

Joint venture:

Spectrum Jewellery

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

250000000

Equity Shares

Rs.10/- each

Rs.2500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

242000000

Equity Shares

Rs.10/- each

Rs.2420.000 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

12000.000

 

 

 

 

 

Expected Sales (2012-2013) : Rs.12000.000 Millions

 

The above information has been parted by Mr. Sandeep (Accounts Manager)

 

 


ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

242.000

242.000

242.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2308.154

2159.792

2061.384

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2550.154

2401.792

2303.384

LOAN FUNDS

 

 

 

1] Secured Loans

5073.703

5714.338

7083.069

2] Unsecured Loans

270.895

286.571

218.421

TOTAL BORROWING

5344.598

6000.909

7301.490

DEFERRED TAX LIABILITIES

34.491

31.129

24.185

 

 

 

 

TOTAL

7929.243

8433.830

9629.059

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

384.794

347.643

311.590

Capital work-in-progress

23.671

44.046

80.975

 

 

 

 

INVESTMENT

175.936

118.100

126.490

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

3487.203

2620.545

2809.303

 

Sundry Debtors

5443.518

6376.976

7719.993

 

Cash & Bank Balances

25.357

29.587

80.310

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

116.569

201.857

255.941

Total Current Assets

9072.647

9228.965

10865.547

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

1707.823

1283.755

1735.961

 

Other Current Liabilities

11.742

13.954

14.517

 

Provisions

8.240

7.215

5.065

Total Current Liabilities

1727.805

1304.924

1755.543

Net Current Assets

7344.842

7924.041

9110.004

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

7929.243

8433.830

9629.059

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

TOTAL                                    

10779.892

11489.931

13433.913

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

10559.069

11320.129

13327.121

 

 

 

 

 

 

PROFIT BEFORE TAX

220.823

169.802

106.792

 

 

 

 

 

Less

TAX                                                                 

72.461

67.513

17.385

 

 

 

 

 

 

PROFIT AFTER TAX

148.362

102.289

89.407

 

 

 

 

 

Less

PRIOR YEAR TAX ADJUSTMENT

0.000

3.881

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

461.792

363.384

273.977

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

610.154

461.792

363.384

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

10886.427

7263.809

7357.837

 

TOTAL EARNINGS

10886.427

7263.809

7357.837

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

1.38

0.89

0.67

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

NA

NA

NA

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.33

1.77

0.96

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.09

0.07

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.77

3.04

3.93

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

5.25

7.07

6.19

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

PARTICULARS

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Sundry Creditors

 

 

 

Creditors due small micro enterprises

0.000

0.000

0.000

Creditors due others

1707.823

1283.755

1735.961

 

 

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

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

---------------------

14]

Estimation for coming financial year

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

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

No

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]

PAN of Proprietor/Partner/Director, if available

No

32]

Passport No of Proprietor/Partner/Director, if available

No

33]

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

No

 

FORM 8:

 

Corporate identity number of the company

U36911MH2007PTC170013

Name of the company

SANGHAVI EXPORTS INTERNATIONAL PRIVATE LIMITED

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

502, Prasad Chambers, Tata Road No.2,

Opera House, Mumbai – 400004, Maharashtra, India

 

This form is for

Modification of charge

Type of charge

Book Debts

Movable Property

Particular of charge holder

Bank of India

Nature of instrument creating charge

Second Supplemental Joint deed of Hypothecation.

Date of instrument Creating the charge

16/04/2012

Amount secured by the charge

Rs.7020.000 Millions

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

Rate of Interest

Int. shall be charged on the outstanding in the said account(s) at such rate or rates as may be determined by the said Banks or at such other rates as may be notified by the banks from time to time.

 

Terms of Repayment

Om Demand.

 

Margin

The Borrower shall maintain such security margin as may be stipulated by the said Banks.

 

Extent and Operation of the charge

The Charge by way of hypothecation hereby created on the said hypothecated assets shall be a security by way of first charge in favour of said Banks jointly and to each of them severally for due repayment and discharge on demand of  said facilities to the said Banks together with interest thereon at the agreed rates and rests as mentioned in said consortium agreement and all costs, charges, expenses and other monies payable in respect of said facilities.

Short particulars of the property charged

Hypothecation by way of first charge in favour of said  Banks jointly and to each of them severally all and singular  Borrowers stocks of raw materials, semi finished and finished goods, stores and spares (consumable stores and spares) bills receivables, Book Debts , plant and machinery  and all other movables of Borrower (excluding such movables as are permitted by said Banks from time to time ) but including documents of title to goods and other assets

Date of instrument modifying the charge

12/05/2008

Particulars of the present modification

The principal amount of charge of BOI Consortium on the hypothecated assets is revised from Rs.7800.000 Millions To Rs.7020.000 Millions.

 


 

 

DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 


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.55.44

UK Pound

1

Rs.87.12

Euro

1

Rs.68.15

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

SDA


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--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

YES

--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.