Business information report

 

1. Summary Information

 

 

Country

India

Company Name

OM STEEL TUBE LIMITED

Principal Name 1

Mr. Vivek Gupta

Status

Moderate

Principal Name 2

Mr. Vineet Gupta

 

 

Registration #

55-009770

Street Address

33, North West Avenue, Punjabi Bagh, New Delhi – 110026

Established Date

01.08.1979

SIC Code

--

Telephone#

91-11-41047705

Business Style 1

Manufacturer

Fax #

Not Available

Business Style 2

--

Homepage

Not Available

Product Name 1

Stainless steel tubes

# of employees

Not Available

Product Name 2

--

Paid up capital

Rs. 45,840,000/-

Product Name 3

--

Shareholders

Bodies corporate (25.00%)

Directors or relatives of directors (75.00%)

Banking

Kotak Mahindra Bank Limited

Public Limited Corp.

No

Business Period

33 Years

IPO

No

International Ins.

-

Public Enterprise

No

Rating

B (30)

Related Company

Relation

Country

Company Name

 

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2011

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

31,468,000

Current Liabilities

15,915,000

Inventories

45,269,000

Long-term Liabilities

50,066,000

Fixed Assets

58,966,000

Other Liabilities

1,172,000

Deferred Assets

000

Total Liabilities

67,153,000

Invest& other Assets

187,000

Retained Earnings

22,897,000

 

 

Net Worth

68,737,000

Total Assets

135,890,000

Total Liab. & Equity

135,890,000

 Total Assets

(Previous Year)

115,378,000

 

 

P/L Statement as of

31.03.2011

(Unit: Indian Rs.)

Sales

109,128,000

Net Profit

3,425,000

Sales(Previous yr)

92,352,000

Net Profit(Prev.yr)

5,951,000

 


MIRA INFORM REPORT

 

 

Report Date :

30.06.2012

 

IDENTIFICATION DETAILS

 

Name :

OM STEEL TUBE LIMITED

 

 

Registered Office :

33, North West Avenue, Punjabi Bagh, New Delhi – 110026

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

01.08.1979

 

 

Com. Reg. No.:

55-009770

 

 

Capital Investment / Paid-up Capital :

Rs. 45.840 Millions

 

 

CIN No.:

[Company Identification No.]

U27102DL1979PLC009770

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELO00918B

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Stainless Steel Pipes and Capillary Tubes.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 200000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Profitability appears to be low. 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

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

 

 

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

33, North West Avenue, Punjabi Bagh, New Delhi – 110026, India

Tel. No.:

91-11-41047705

Fax No.:

Not Available

E-Mail :

genius.international@rediffmail.com

 

 

Head Office :

Flat No. G – 2, House No. 3, Road No. 83, West Punjabi Bagh, New Delhi – 110026, India

Tel. No.:

91-11-41047704-07

Fax No.:

91-11-25225605

E-Mail :

omstell@airtelmail.in

info@omsteeltubes.com

 

 

Factory  :

Dharuhera (Joniawas) Distt. Rewari, Haryana, India

Tel. No.:

91-1274-267182 / 267183

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Vivek Gupta

Designation :

Managing director

Address :

33, North West Avenue, Punjabi Bagh, New Delhi – 110026, India

Date of Birth/Age :

09.11.1967

Date of Appointment :

30.08.1995

DIN No.:

00908621

 

Other Directorship :

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Company/ LLP Status

Defaulting status

1

L74899DL1993PLC055507

OM SECURITIES LIMITED

Whole-time director

01-10-08

04-10-93

Active

NO

2

U27102DL1979PLC009770

OM STEEL TUBE LTD

Managing director

01-10-08

30-08-95

Active

NO

 

 

Name :

Mr. Vineet Gupta

Designation :

Whole-time director

Address :

33, North West Avenue, Punjabi Bagh, New Delhi – 110026, India

Date of Birth/Age :

06.06.1969

Date of Appointment :

07.12.1995

DIN No.:

00908619

 

Other Directorship :

]

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Company/ LLP Status

Defaulting status

1

L74899DL1993PLC055507

OM SECURITIES LIMITED

Managing director

01-10-08

04-10-93

Active

NO

2

U27102DL1979PLC009770

OM STEEL TUBE LTD

Whole-time director

01-10-08

07-12-95

Active

NO

 

 

Name :

Mr. Deshpal Gupta

Designation :

Whole-time director

Address :

33, North West Avenue, Punjabi Bagh, New Delhi – 110026, India

Date of Birth/Age :

12.06.1945

Date of Appointment :

13.08.1986

DIN No.:

00905829

 

 

Name :

Mrs. Rajni Gupta

Designation :

Whole-time director

Address :

33, North West Avenue, Punjabi Bagh, New Delhi – 110026, India

Date of Birth/Age :

26.02.1968

Date of Appointment :

07.12.1995

DIN No.:

00905828

 

 

Name :

Mr. Rama Gupta

Designation :

Whole-time director

Address :

33, North West Avenue, Punjabi Bagh, New Delhi – 110026, India

Date of Birth/Age :

30.08.1941

Date of Appointment :

07.12.1995

DIN No.:

00905824

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 30.09.2011)

 

Names of Shareholders

 

No. of Shares

Hari Krishan Gupta

 

9025

Janak Raj Gupta (HUF)

 

8145

Sushil Kumar Gupta

 

6455

Deshpal Gupta (HUF)

 

5955

Vandana Gupta

 

5035

Rama Gupta

 

6895

Mohit Gupta

 

6700

Uma Gupta

 

5600

Sita Gupta

 

5300

Pritam Dai

 

5195

Indrawati

 

4500

Om Prakash Gupta

 

6580

Deepali Gupta

 

5400

Geetanjali Gupta

 

4350

Kapil Gupta

 

6200

Arti Gupta

 

6055

Vineet Gupta

 

6050

Sohan Dai

 

1250

Sudha Gupta

 

1000

Pokhar Mal

 

3300

Lala Ram Gupta

 

1575

Yogesh Kumar

 

3150

Mishi Gupta

 

4150

Sushil Kumar Gupta

 

6200

Shyam Sunder

 

4450

R.K. Mittal

 

1025

Shri  Chand

 

2550

Nihal Chand

 

2350

Ram Prakash

 

2500

Paras Ram

 

2950

Nanak Chand

 

2600

Mahabir Parshad Mittal

 

2700

Om Securities Limited, India

 

100000

Gopi Securities Private , India

 

11000

Chhavi Investments P , India

 

7000

Money Flow Portfolio , India

 

7000

Riwaaz Investments , India

 

8000

Expressions Portfolio , India

 

7000

 

 

(AS ON 30.09.2011)

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

25.00

Directors or relatives of directors

 

75.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Stainless Steel Pipes and Capillary Tubes.

 

 

Products :

Stainless Steel Tubes

 

 

PRODUCTION STATUS

 

Particulars

Unit

As on 31.03.2011

 

 

 

Licensed Capacity

M.T.

500

Installed Capacity

M.T.

500

Actual Production

 

 

a) Stainless steel tubes

 

 

Finished Goods

M.T.

261.709

Increase / (Decrease) Semi Finished Goods

M.T.

19.118

 

 

 

b) Stainless steel Seamless tubes

 

 

Finished Goods

M.T.

--

Increase / (Decrease) Semi Finished Goods

M.T.

--

 

 

 

c) Scrap

M.T.

80.048

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai - 400021, Maharashtra, India

 

 

Facilities :

Secured Loans

Rs. in million  31.03.2011

 Rs. in million 31.03.2010

Kotak Mahindra Bank Limited

(Cash Credit against hypothecation of Stocks)

4.436

8.175

Kotak Mahindra Bank Limited ( Term loan against hypothecation of Plant and Machinery)

6.545

0.000

HDFC Bank Limited (against hypothecation of Car )

0.040

0.268

Kotak Mahindra Bank Limited (against hypothecation of Car )

0.205

0.000

Axis Bank Inova Loan (against hypothecation of Car )

1.065

0.000

Axis Bank Audi Loan (against hypothecation of Car )

3.192

0.000

Kotak Mahindra Bank Limited

(Overdraft against hypothecation of FDR)

0.453

0.000

Total

15.936

8.443

 

 

Unsecured Loans

Rs. in million  31.03.2011

 Rs. in million 31.03.2010

From Companies

19.227

6.980

From Others

14.903

15.363

Total

34.130

22.343

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

T. Dhingra and Company

Chartered Accountants

Address :

Cottage-13A, Flat G-5, West Patel Nagar, New Delhi – 110008, India

Qualification :

B.Com, FCA

Tel. No.:

91-11-25875682/25872682

Mobile No.:

91-9810070394

PAN NO.:

AAJPD9440Q

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500000

Equity Share

Rs.100/- each

Rs. 50.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

458400

Equity Share

Rs.100/- each

Rs. 45.840 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

45.840

45.840

45.840

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

22.897

19.472

13.521

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

68.737

65.312

59.361

LOAN FUNDS

 

 

 

1] Secured Loans

15.936

8.443

3.973

2] Unsecured Loans

34.130

22.343

20.981

TOTAL BORROWING

50.066

30.786

24.954

DEFERRED TAX LIABILITIES

1.172

0.763

0.258

 

 

 

 

TOTAL

119.975

96.861

84.573

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

58.966

45.429

44.171

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.187

0.187

0.187

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

45.269

35.319

30.883

 

Sundry Debtors

23.146

27.026

23.975

 

Cash & Bank Balances

2.243

2.515

3.155

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

6.079

4.902

3.095

Total Current Assets

76.737

69.762

61.108

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

14.436

17.140

19.265

 

Other Current Liabilities

1.479

1.377

1.415

 

Provisions

0.000

0.000

0.213

Total Current Liabilities

15.915

18.517

20.893

Net Current Assets

60.822

51.245

40.215

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

119.975

96.861

84.573

 

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

109.128

92.352

73.834

 

 

Other Income

0.590

0.483

4.466

 

 

TOTAL                                    

109.718

92.835

78.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumed

64.927

54.241

46.653

 

 

Increase / (Decrease) in Inventories

(9.270)

(3.892)

0.441

 

 

Manufacturing Expenses

27.763

20.485

16.661

 

 

Remuneration to Employees

2.855

2.305

1.875

 

 

Adm, Selling and Other Overheads

13.601

8.024

7.347

 

 

Purchases (Sales Return)

0.761

0.103

0.316

 

 

Loss on Sale of Fixed Assets

0.564

0.044

0.000

 

 

TOTAL                                    

101.201

81.310

73.293

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

8.517

11.525

5.007

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

2.742

2.137

2.067

 

 

 

 

 

 

PROFIT BEFORE TAX

5.775

9.388

2.940

 

 

 

 

 

Less

TAX                                                                 

2.350

3.437

0.476

 

 

 

 

 

 

PROFIT AFTER TAX

3.425

5.951

2.464

 

 

 

 

 

Add

PREVIOUS YEAR ADJUSTMENTS

0.000

0.000

0.017

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

12.141

6.190

3.709

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

15.566

12.141

6.190

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

14.483

7.192

3.369

 

TOTAL EARNINGS

14.483

7.192

3.369

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

8.791

10.838

1.849

 

 

Stores & Spares

0.000

0.436

0.766

 

 

Capital Goods

8.716

0.000

0.000

 

TOTAL IMPORTS

17.507

11.274

2.615

 

 

 

 

 

 

Earnings Per Share (Rs.)

7.47

--

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

3.12

6.41

3.15

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

5.29

10.17

3.98

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.26

8.15

2.79

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.08

0.14

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.98

0.77

0.78

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

4.82

3.77

2.92

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check list by info Agents

Available in Report (Yes/ No)

Year of Establishment

Yes

Locality of the Firm

Yes

Constitution of the Firm

Yes

Premises details

No

Type of Business

Yes

Line of Business 

Yes

Promoter’s Background 

Yes

No. of Employees

No

Name of Person Contacted

No

Designation of Contact person

No

Turnover of Firm for last three years

Yes

Profitability for last three years

Yes

Reasons for variation <> 20%

---------

Estimation for coming financial year

No

Capital in the business

No

Details of sister concerns

No

Major Suppliers

No

Major Customers

No

Payments Terms

No

Export/ Imports Details (If applicable)

No

Market Information

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

Litigations that the firm/ Promoters Involved in

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

Banking details

Yes

Banking Facility Details

Yes

Conduct of the Banking Account

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

Buyer visit details

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

Financials, if provided

Yes

Incorporation details is applicable

Yes

Last Accounts filed at ROC

Yes

Major Shareholders, if available

Yes

 

FINANCIAL RESULTS:

 

During the period, the company earned a net profit of Rs. 3.425 Millions as against the previous year’s net profit of Rs. 5.951 Millions. The Turnover/ Sales of S.S. Tubes/ Pipes has increased from Rs. 92.352 Millions for the year 2009-10 of Rs. 109.128 Millions for the year which is a increase of about 18%. The prospects in the coming years seem to be very bright and it is hoped that in the neat future, the company shall be able to reap substantial benefits.

 

PROSPECTS:

 

The company has bright prospects in the Indian market with ever increasing demand for the various kinds of Stainless Steel Tubes manufactured by the company. The products of the company are being well accepted in European markets and they foresee good growth prospects in coming year.

 

 

FORM 8

 

Corporate identity number of the company

U27102DL1979PLC009770

Name of the company

OM STEEL TUBE LIMITED

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

33, North West Avenue, Punjabi Bagh, New Delhi – 110026, India

This form is for

Modification of charge

Charge identification number of the modified 

10261201

Type of charge

Immovable property

Book Debts

Movable Property

Others

Particular of charge holder

Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai - 400021, Maharashtra, India

Email: john.fernandes@kotak.com

Nature of description of the instrument creating or modifying the charge

1. Supplementary Deed of Hypothecation.

2. Memorandum of Entry for Mortgage by Constructive Delivery of Title Deeds.

Date of instrument Creating the charge

11.03.2011

Amount secured by the charge

Rs. 35.000 Millions

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

Rate of Interest

OD / TL I / TL II- Floating over t~he tenure of the facility. The ROI has been arrived at on the basis of the Bank's Benchmark PLR.

WCDL - As deemed fit by the Bank at the time of disbursement.

 

Terms of Repayment

TL I - Maximum 36 months (7 EMIs already paid)

TL II - Maximum 36 months.

LCC - Repayment by way of disbursement of Term Loan of Rs. 2.500 Millions from the Borrower's own sources or debit to current account of Borrower.

WCDL - On demand as per terms and conditions as deemed fit by the Bank.

 

Margin

TL I - 25%

TL II - 30%

LC I/II / LCC - Minimum cash margin of 10% shall be provided upfront in the form of FD.

Lien shall be marked on the Fixed Deposit in favour of the Bank.

WCDL - On demand as per terms and conditions as deemed fit by the Bank.

 

Extent and Operation of the charge

1. First and exclusive charge by way of Hypothecation of Current assets and Movable fixed assets present and future of the Borrower, in favour of Kotak Mahindra bank as security for repayment of financial facilities granted by the Bank to the

Borrower.

2. First and exclusive charge by way of Mortgage on Immovable property of the company, in favour of Kotak Mahindra bank as security for repayment of financial facilities granted by the Bank to the company.

Short particulars of the property charged

The whole of Borrower's Current assets and Movable fixed assets both present and future as described in Schedule to the Supplemetary Deed of Hypothecation.

 

All that piece and parcel of land adms. 116, Khatoni No. 128, Mustatil No.128 and 03, Killa No. 6(2-6), 15(6-10), 16(8-0), 17(4-8), Mustatil No. 04, 9(2-0), 10(8-0), 11(8-0), 12(6-10).

 

16(2-4), 20(8-0), 10 Killa, 58 Kanal, 1 Marla, situated at Moja Malpura, Rewari.

Date of latest modification prior to the present modification

02.02.2011

Particulars of the present modification 

Bank had granted facilities of Rs. 15.000 Millions to the Borrower which was secured by way Hypothecation on Current assets on 31/12/2010. said charge was modified from time to time, additional security was offered by Mortgage on Immovable properties and the said charge was modified accordingly. Now by this modification bank has granted additional facility of Rs. 2.500 Millions and the said charge is modified by way of Hypothecation as well as Mortgage and extended to the revised facility of Rs. 35.000 Millions.

 

 

FIXED ASSETS:

 

  • Land
  • Factory Building
  • Plant and Machinery
  • Electric installation
  • Furniture and Fixtures
  • Car
  • Computer
  • Printer
  • Fax
  • Mobile Phone Instrument
  • Air conditioner
  • Invertor
  • Tempo
  • Television

 


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. 56.31

UK Pound

1

Rs. 88.06

Euro

1

Rs. 70.91

 

 

INFORMATION DETAILS

 

Report Prepared by :

ACH


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YE

TOTAL

 

30

 

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.