MIRA INFORM REPORT

 

 

Report Date :

12.03.2012

 

IDENTIFICATION DETAILS

 

Name :

NECO HEAVY ENGINEERING AND CASTINGS LIMITED (w.e.f. 26.03.2009)

 

 

Formerly Known As :

NECO CASTINGS PRIVATE LIMITED

 

 

Registered Office :

Plot No. 65/2, Nildoh Digdoh, MIDC Industrial Area, Nagpur – 440016, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

27.11.1987

 

 

Com. Reg. No.:

11-045436

 

 

Capital Investment / Paid-up Capital :

Rs. 36.990 Millions

 

 

CIN No.:

[Company Identification No.]

U27300MH1987PLC045436

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

NGPN00541C

 

 

PAN No.:

[Permanent Account No.]

AAACN7165N

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Engineering Cartings, Sponge Iron Plant, Slag Pots etc.

 

 

No. of Employees :

500 (Approximately) (In Office + In Factory)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (44)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 690000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. There has been continuous dip in the profitability of the company. However, networth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal 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.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Rajan

Designation :

Export Manager

Contact No.:

91-9373658000

Date :

06.03.2012

 

 

LOCATIONS

 

Registered Office / Factory 1:

Plot No. 65/2, Nildoh, Digdoh MIDC Industrial Area, Nagpur – 440016, Maharashtra, India

Tel. No.:

91-7104-236997 / 236998 / 236251 / 237461

Mobile No.:

91-9373658000 (Mr. Rajan)

Fax No.:

91-7104-236255 / 232774 / 237583

E-Mail :

contact@necoindia.com

rajan.exportmktg@necoindia.com

neconcl@necoindia.com 

Website :

http://www.necoindia.com

Location :

Owned

 

 

Corporate Office :

F-8, MIDC Industrial Area Hingna Road, Nagpur – 440016, Maharashtra, India

Tel. No.:

91-7104-237276 / 237471 / 237472 / 236251

Fax No.:

91-710-4236255 / 4237583

 

 

Factory 2 :

F-9/17, MIDC Industrial Area Hingna Road, Nagpur – 440016, Maharashtra, India

Tel. No.:

91-7104-235944

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Basant Lall Shaw

Designation :

Director

Address :

Usha Sadan, 246, PT.  R.S.S. Marg, Civil Lines, Nagpur – 440001, Maharashtra, India

Date of Birth/Age :

03.08.1933

Date of Appointment :

14.11.1994

DIN No.:

00249729

 

 

Name :

Mr. Arvindkumar Jayaswal

Designation :

Director

Address :

Usha Sadan, 246, PT.  R.S.S. Marg, Civil Lines, Nagpur – 440001, Maharashtra, India

Date of Birth/Age :

26.11.1953

Date of Appointment :

12.04.2007

DIN No.:

00249864

 

 

Name :

Mr. Ramesh Jayaswal

Designation :

Director

Address :

Usha Sadan, 246, PT.  R.S.S. Marg, Civil Lines, Nagpur – 440001, Maharashtra, India

Date of Birth/Age :

02.02.1960

Date of Appointment :

12.04.2007

DIN No.:

00249947

 

 

Name :

Mr. Awadh Bihari Pandey

Designation :

Director

Address :

51 E, Ujjwal Apartments, Trimurthy Nagar, Nagpur – 440022, Maharashtra, India

Date of Birth/Age :

20.05.1951

Date of Appointment :

02.04.2009

DIN No.:

01801851

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajan

Designation :

Export Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

 

 

 

Pariwar Food Industries Private Limited, India

 

352400

Basantlall Shaw

 

288800

Arbind Jayaswal

 

360000

Ramesh Jayaswal

 

267100

Nisha Jayaswal

 

360000

Rita Jayaswal

 

203300

Master Ananmay Jayaswal

 

352100

Neco Holdings Private Limited, India

 

278400

Neco Leasing and Finance Private Limited, India

 

289760

Neco Valves and Pumps Private Limited, India

 

321020

Nagpur Scrap Suppliers Private Limited, India

 

321020

Basantlall Shaw (HUF)

 

287100

Shankar Prasad Bajaj Jointly With Hargunn Jayaswal

 

20000

Total

 

3701000

 

As on 30.09.2011

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Bodies corporate

42.22

Directors or relatives of Directors

49.48

Other top fifty shareholders

8.30

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Engineering Cartings, Sponge Iron Plant, Slag Pots etc.

 

 

Products :

Product Description

Item Code No.

Ingot Moulds

845420.02

Cast Iron Articles

732510.00

Parts of Sugar Manufacturing Machinery

843890.01

Steel Castings

7325.20

 

 

Exports :

 

Products :

·         Engineering Cartings

·         Sponge Iron Plant

·         Flag Pot

Countries :

·         France

·         Gulf Countries

·         African Countries 

 

 

Terms :

 

Selling :

Depends

 

 

Purchasing :

Depends

 

PRODUCTION STATUS

 

As on 31.03.2011

 

Licensed Capacity: Not Applicable

 

Installed Capacity:

Particulars

Unit

31.03.2011

 

 

 

Iron and Steel Castings

M.T

20500

 

 

 

 

Actual Production:

Particulars

Unit

31.03.2011

 

 

 

Fabrication

M.T

2446

 

 

 

 

 

GENERAL INFORMATION

 

Customers :

Manufacturers

 

 

No. of Employees :

500 (Approximately) (In Office + In Factory)

 

 

Bankers :

·        State Bank of India, Industrial Finance Branch, No 5, Sai Complex, Bharat Nagar, Amravati Road, Nagpur - 440010, Maharashtra, India

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

·         Dena Bank, 67-A, Krishna Bhavan, Nehru Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India

 

 

Facilities :

Secured Loan

As on

31.03.2011

(Rs. in

Millions)

As on

31.03.2010

(Rs. in

Millions)

 

 

 

Term Loan from Bank

14.836

25.912

Vehicle Loans

0.938

0.583

Working Capital Loans from Banks

Rupeee Loans

(net of cheques-in-hand)

108.666

119.203

Total

124.440

145.698

 

Notes:

The Term Loan from Bank is secured by the fixed assets of the company, both present and future, situated at 65/2 Nildoh/Digdoh, MIDC Industrial Area, Hingna Road, Nagpur by mortgage of land and building and hypothecation of machinery and second charge on the current assets of the company.

 

Working Capital Loan from State Bank of India is secured against hypothecation of stock of raw materials, finished goods, consumable stores and book debts and also by personal guarantees of some of the Directors of the Company.

 

Vehicle Loans from Banks are secured by hypothecation of the vehicles financed.

 

 

Unsecured Loan

As on

31.03.2011

(Rs. in

Millions)

As on

31.03.2010

(Rs. in

Millions)

 

 

 

Interest Free Sales Tax Loan under the package Scheme of Incentives, 1983 of Government of Maharashtra

7.245

7.542

Inter-Corporate Deposits

53.610

51.468

Other Loans

2.115

1.938

Total

62.970

60.948

 

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Agrawal Chhallani and Company

Chartered Accountants

Address :

51, New Colony, Nagpur – 440001, Maharashtra, India

Tel. No.:

91-710-2595653 / 2595750

PAN.:

AACFA2753L

 

 

Related Parties  :

·         Jayaswal Neco Industries Limited

·         Neco Ceramics Limited

·         Corporate Ispat Alloys Limited                         

·         Jayaswal Holdings Private limited

·         Abhijeet Infrastructure Limited

·         Steel and Tube Exports Limited

·         NSSL Limited                                            

·         A.M.R. Iron and Steel Private limited

·         Jyotikant Investments Private Limited

·         Econo Valves Limited

·         Parivar Food Industries Private Limited

 

 

CAPITAL STRUCTURE

 

As on 30.09.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3701000

Equity Shares

Rs.10/- each

Rs.37.010 Millions

 

 

 

 

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3699000

Equity Shares

Rs.10/- each

Rs.36.990 Millions

 

 

 

 

 

Note:

 

Of the above Equity Shares :

18,30,000 shares of Rs.10/- each were allotted as fully paid-up Bonus shares by capitalisation of General Reserve, and

 

4,91,000 shares of Rs.10/- each are issued pursuant to the Scheme of Amalgamation of Ashutosh Castings Limited with Neco Heavy Engineering and Castings Limited (formerly known as Neco Castings Limited), without payments being received in cash.

 

 


 

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

36.990

36.930

36.810

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

136.671

135.108

131.066

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

173.661

172.038

167.876

LOAN FUNDS

 

 

 

1] Secured Loans

124.440

145.698

135.913

2] Unsecured Loans

62.970

60.948

61.110

TOTAL BORROWING

187.410

206.646

197.023

DEFERRED TAX LIABILITIES

14.719

13.177

12.691

 

 

 

 

TOTAL

375.790

391.861

377.590

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

154.843

158.622

162.603

Capital work-in-progress

23.353

24.268

25.654

 

 

 

 

INVESTMENT

10.070

10.101

9.431

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

103.432
77.891

99.166

 

Sundry Debtors

164.031
135.214

141.668

 

Cash & Bank Balances

18.465
5.702

5.406

 

Other Current Assets

0.000
0.000

0.000

 

Loans & Advances

49.947
54.982

51.358

Total Current Assets

335.875

273.789

297.598

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

112.196

45.086

78.934

 

Other Current Liabilities

26.905

22.197

22.394

 

Provisions

9.250

7.636

16.368

Total Current Liabilities

148.351

74.919

117.696

Net Current Assets

187.524

198.870

179.902

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

375.790

391.861

377.590

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

696.195

602.489

781.889

 

 

Other Income

4.512

2.058

7.979

 

 

TOTAL                                     (A)

700.707

604.547

789.868

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials

509.126

372.547

523.173

 

 

Manufacturing Expenses

66.518

69.584

84.574

 

 

Remuneration and Benefits to Employees and Others

58.356

54.295

55.754

 

 

Administrative, Selling and Other Expenses

59.463

46.031

48.586

 

 

(Increase)/Decrease in Stock

(31.994)

25.271

18.451

 

 

TOTAL                                     (B)

661.469

567.728

730.538

 

 

 

 

 

Less

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

39.238

36.819

59.330

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

24.947

20.199

21.135

 

 

 

 

 

 

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

14.291

16.620

38.195

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

10.759

9.928

9.920

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

3.532

6.692

28.275

 

 

 

 

 

Less

TAX                                                                  (H)

1.951

1.221

9.504

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1.581

5.471

18.771

 

 

 

 

 

Add/ (Less)

INCOME-TAX OF EARLIER YEAR

0.000

(0.124)

1.286

 

 

 

 

 

Less

PRIOR PERIOD EXPENSES

(0.258)

(1.785)

(2.337)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

82.097

78.535

60.815

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

83.420

82.097

78.535

 

 

 

 

 

 

EXPORT VALUE

33.171

16.757

135.083

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.43

1.49

6.01

 

 

Expected Sales (2011-2012) : Rs.800.000 Millions

 

The above information has been parted by Mr. Rajan.

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

0.23

0.90

2.38

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.51

1.11

3.62

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.72

1.55

6.14

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.02

0.04

0.17

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.93

1.64

1.87

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.26

3.65

2.53

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sundry Creditors Details:

(Rs. In Millions)

Particulars

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

 

 

 

Micro, Small and Medium Enterprises

0.000

0.000

0.000

Others

(Subject to confirmation)

112.196

45.086

78.934

Total

112.196

45.086

78.934

 

 

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

--

8) No. of employees

Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last one years

Yes

12) Profitability for last three years

No

13) Reasons for variation <> 20%

No

14) Estimation for coming financial year

Yes

15) Capital in the business

No

16) Details of sister concerns

No

17) Major suppliers

No

18) Major customers

No

19) Payments terms

Yes

20) Export / Import details (if applicable)

Yes

21) Market information

--

22) Litigations that the firm / promoter

--

23) Banking Details

Yes

24) Banking facility details

No

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

No

28) Incorporation details, if applicable

--

29) Last accounts filed at ROC

--

30) Major Shareholders, if available

--

 

Operations:

 

The production of the Company during the year at 11363 MT was almost same as the previous year. However, the Company has during the year concentrated more on its Fabrication business, which helped in maintaining the profitability at some extent. The sale of Ingot moulds was marginally increased at 11582 MT as compared to 11431MT of the previous year. The Company's export turnover enhanced to Rs. 33.171 Millions as compared to Rs. 16.757 Millions of the previous year.

 

The total sales realization was however, lower as compared to previous year. Raw Material Prices were also affecting the Profitability. Iron and Steel Scrap and Steel prices highly increased by 9% and 15% respectively as compared to previous year.

 

Despite lower consumption of Coal/Coke and electricity; the net profit of the Company is reduced to Rs. 1.581 Millions as compared to Rs. 5.471 Millions of previous year as a result of above and increased fixed Administrative and selling Expenses, Interest and Financial Charges and depreciation charged during the year.

 

Contingent Liability:

(Rs. In Millions)

Particulars

31.03.2011

31.03.2010

(a)     Guarantees given by the Company's Bankers

(Bank Guarantees are provided under contractual/legal obligations)

17.317

37.402

(b)     Letters of Credit opened in favour of Suppliers

(Cash outflow is expected on receipt of material from suppliers)

19.899

11.709

(c)     Corporate Guarantee given by the company to IFCI and UCO Bank regarding borrowings by Corporate Ispat Alloys Limited, a company under the same management.

Balance in Loan Accounts

 

Corporate Guarantee given by the company to State Bank of Indore for Bank Guarantee facilites of AMR Iron and Steel Private Limited, a company under the same management

320.000

 

 

68.311

 

22.600

320.000

 

 

91.311

 

0.000

(d)    Claims against the company not acknowledged as debts

Disputed Provident Fund dues. (No cash outflow is expected in the near future)

0.505

0.505

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U27300MH1987PLC045436

Name of the company

NECO HEAVY ENGINEERING AND CASTINGS LIMITED

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

Plot No. 65-2, Nildoh Digdoh, MIDC Industrial Area, Nagpur – 440016, Maharashtra, India

E-Mail : contact@necoindia.com

This form is for

Creation of charge

Type of charge

Movable property (not being pledge)

Particular of charge holder

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

E-Mail : john.fernandes@kotak.com

Nature of instrument creating charge

Deed of Hypothecation

Date of instrument Creating the charge

06.09.2010

Amount secured by the charge

Rs.0.709 Million

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

Rate of Interest

5.25% p.a.

 

Terms of Repayment

Equated Monthly Installment of Rs.0.023 Million for 35 months.

 

Margin

NIL

 

Extent and Operation of the charge

First and exclusive charge created by way of Hypothecation in favour of Kotak Mahindra Bank on the assets financed.

Short particulars of the property or asset(s) charged (including complete address and location of the property)

ACE - CRN110

ACE Crane RHINO 110 C

Invoice No. 5626

Chassis No. 11014551 and Engine No. S433-A24293.

 

Fixed assets:

 

·         Freehold Land

·         Building

·         Plant and Machinery

·         Office Equipments

·         Computers

·         Furniture and Fixtures

·         Vehicles

·         Software 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.50.02

UK Pound

1

Rs.79.01

Euro

1

Rs.66.18

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

4

--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

YES

TOTAL

 

44

 

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.