MIRA INFORM REPORT

 

 

Report Date :

16.03.2012

 

 

IDENTIFICATION DETAILS

 

Name :

DEFIANCE KNITTING INDUSTRIES PRIVATE LIMITED

 

 

Registered Office :

K-6, Additional Ambernath, Industrial Estate Area, MIDC, Ambernath (East), Thane-421506, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

27.12.1993

 

 

Com. Reg. No.:

11-75811

 

 

Capital Investment / Paid-up Capital :

Rs.332.453 Millions

 

 

CIN No.:

[Company Identification No.]

U17100MH1993PTC075811

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMD05069B

 

 

PAN No.:

[Permanent Account No.]

AAACD2225R

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of All kinds of Yarn Cotton Textiles.

 

 

No. of Employees :

800 (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 2800000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. 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. Manoj Chopra

Designation :

Finance Manager

Contact No.:

91-251-2621044

91-9930007001

Date :

15.03.2012

 

 

LOCATIONS

 

Registered Office/ Factory :

K-6, Additional Ambernath, Industrial Estate Area, MIDC, Ambernath (East), Thane-421506, Maharashtra, India

Tel. No.:

91-251-2621044/ 2620067/ 2569389/ 6550105/ 6

Mobile No.:

91-9930007001 (Mr. Manoj Chopra)

Fax No.:

91-251-2621055

E-Mail :

dlci@dkindia.com

manojcopra@dkinida.com

rchamaria@mgbco.com

defiance@bom3.vsnl.net.in

dki@dkiindia.com

Website :

http://www.dkiindia.com

http://www.defianceindia.in

Location :

Owned

 

 

DIRECTORS

 

(AS ON 30.09.2011)

 

Name :

Mr. Sudhir Babubhai Vora

Designation :

Director

Address :

Flat No.2204, 392 AL Seef Tower, Dubai Marina, Dubai, UAE

Date of Birth/Age :

05.04.1956

Date of Appointment :

27.12.1993

DIN No.:

01212613

 

 

Name :

Mr. Vanya Sudhir Vora

Designation :

Director

Address :

Flat No.2204, 392 AL Seef Tower, Dubai Marina, Dubai, UAE

Date of Birth/Age :

06.10.1966

Date of Appointment :

01.02.1995

DIN No.:

01212611

 

 

Name :

Mr. Monoj Vasudev Prasad Oza

Designation :

Managing Director

Address :

303, Ruby Building, Nirmal Lifestyle, LBS Marg, Mulund, Mumbai-400080, Maharashtra, India

Date of Birth/Age :

14.07.1972

Date of Appointment :

29.12.2006

DIN No.:

00106211

 

 

Name :

Mr. Milan Jasubhai Patel

Designation :

Additional Director

Address :

111, Sangeeta 27/28, Arthur Bunder Road, Colaba, Mumbai-400005, Maharashtra, India

Date of Birth/Age :

01.04.1958

Date of Appointment :

24.12.2006

DIN No.:

01165058

 

 

Name :

Mr. Avinash Sudhir Vora

Designation :

Whole Time Directors

Address :

2101 A Lake Castle, C Wing, Hiranandani Gardens, Powai, Mumbai-400076, Maharashtra, India

Date of Birth/Age :

05.05.1987

Date of Appointment :

30.09.2010

DIN No.:

02973597

 

 

KEY EXECUTIVES

 

Name :

Mr. Manoj Chopra

Designation :

Finance Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 30.09.2011)

 

Names of Shareholders

No. of Equity Shares

No. of Preferences Shares

 

 

 

Sudhir Vora

1563476

1158939

Bharti Badlani

423890

104279

Vinya Vora

17000

--

Amritkumar Bakshy

13

--

N.T. Dewani

13

--

Milan Patel

63

--

Manoj Oza

63

--

Avinash Vora

13

--

Jamno Perumal Kalwani

--

56782

 

 

 

Total

 

2004531

1320000

 

 

(AS ON 30.09.2011)

Equity Shares Break – up

 

Category

 

Percentage

 

 

 

Directors or relatives of directors

 

100.00

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of All kinds of Yarn Cotton Textiles.

 

 

Exports :

 

Products :

Cotton Textiles and Yarns

Countries :

USA

 

 

Imports :

 

Products :

Raw Materials

Countries :

China

 

 

Terms :

 

Selling :

L/C, Cash and Credit

 

 

Purchasing :

L/C, Cash and Credit

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

 

 

31.03.2011 (M.T.)

 

 

 

Licensed Capacity

 

6,000

Installed Capacity

 

4,800

Production (Own)

 

723.82

 

 

 

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers, Retailers and Manufacturer

 

 

No. of Employees :

800 (Approximately)

 

 

Bankers :

·         ICICI Limited,

163, Backbay Reclamation, Mumbai-400020, Maharashtra, India

 

·         United Bank of India, Mumbai

·         Standard Chartered Bank, Mumbai

 

·         Oriental Bank of Commerce,

Ambernath Branch, Ambernath-421501, Thane, India

 

·         IDBI Bank Limited,

IDBI Tower WTC Complex, Cuffe Parade, Mumbai- 400005, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

Working Capital Loans Secured

38.901

46.159

Loans Taken for Vehicle Secured

1.043

0.611

 

 

 

Total

 

39.944

46.770

 

 

Unsecured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

 

 

 

Loans Directors Unsecured

0.889

0.714

 

 

 

Total

 

0.889

0.714

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

MGB and Associates

Chartered Accountant

Address :

22, Swadeshi Market,1st Floor, Kalbadevi Road, Mumbai – 4000002, Maharashtra, India

Tel. No.:

AAOFM6839R

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2011)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2500000

Equity Shares

Rs.100/- each

Rs.250.000 Millions

1500000

Preferences Shares

Rs.100/ -each

Rs.150.000 Millions

 

 

 

 

 

Total

 

Rs.400.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2004531

Equity Shares

Rs.100/- each

Rs.200.453 Millions

1320000

Preferences Shares

Rs.100/ -each

Rs.132.000 Millions

 

 

 

 

 

Total

 

Rs.332.453 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

332.453

332.453

332.453

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

370.891

276.500

227.656

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

703.344

608.953

560.109

LOAN FUNDS

 

 

 

1] Secured Loans

39.944

46.770

85.643

2] Unsecured Loans

0.889

0.714

0.714

TOTAL BORROWING

40.833

47.484

86.357

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

744.177

656.437

646.466

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

402.263

417.642

410.889

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

70.822

76.934

54.309

 

Sundry Debtors

147.036

121.082

130.621

 

Cash & Bank Balances

106.949

38.279

36.154

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

94.430

84.862

80.083

Total Current Assets

419.237

321.157

301.167

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

29.785

32.025

45.583

 

Other Current Liabilities

11.151

32.333

14.291

 

Provisions

36.387

18.004

5.716

Total Current Liabilities

77.323

82.362

65.590

Net Current Assets

341.914

238.795

235.577

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

744.177

656.437

646.466

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2011

31.03.2010

 

 

 

 

 

 

SALES AND OTHER INCOME

 

682.091

507.373

 

 

 

 

 

 

 

 

 

 

 

PROFIT (LOSS) BEFORE INTEREST AND FINANCE CHARGE

 

137.955

76.205

 

 

 

 

 

 

INTEREST AND FINANCE CHARGE

 

2.747

4.806

 

 

 

 

 

 

PROFIT BEFORE DEPRECIATION

 

135.208

71.399

 

 

 

 

 

 

PROFIT/ LOSS AFTER TAX AND DEPRECIATION

 

94.850

31.366

 

 

 

 

 

 

PROVISION FOR TAXES

 

6.056

5.350

 

 

 

 

 

 

NET PROFIT / (LOSS)

 

94.575

31.366

 

 

 

 

 

 

BALANCE CARRIED TO BALANCE SHEET

 

183.461

88.886

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

349.940

304.946

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Spares and Repair Maintenances

 

4.745

17.342

 

 

Sundry Fees and Subscription

 

0.053

0.036

 

 

Legal and Professional Charges

 

0.049

0.214

 

 

Capital Goods

 

18.910

0.000

 

TOTAL IMPORTS

 

23.757

17.592

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

--

--

 

Expected Sales (2011-12): Rs.700.000 Millions

 

The above information has been parted by Mr. Manoj Chopra.

 

 

 

PARTICULARS

 

 

 

31.03.2009

 

SALES

 

 

 

 

 

Income

 

 

491.692

 

 

Other Income

 

 

59.347

 

 

TOTAL                                     (A)

 

 

551.039

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material Consumed

 

 

351.068

 

 

Manufacturing and Other Expenses

 

 

56.843

 

 

Selling and Distribution Expenses

 

 

7.168

 

 

Office and Administration Expenses

 

 

52.748

 

 

Prior period adjustment

 

 

0.056

 

 

TOTAL                                     (B)

 

 

467.883

 

 

 

 

 

Less

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

 

 

83.156

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

 

3.616

 

 

 

 

 

 

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

 

 

79.540

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

 

39.194

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

 

 

40.346

 

 

 

 

 

Less

TAX                                                                  (H)

 

 

0.444

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

 

39.902

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

 

(194.597)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Adjusted on Capital Reduction

 

 

(212.214)

 

BALANCE CARRIED TO THE B/S

 

 

57.519

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

271.743

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Spares and Repair Maintenances

 

 

7.533

 

 

Sundry Fees and Subscription

 

 

0.000

 

 

Legal and Professional Charges

 

 

0.267

 

 

Capital Goods

 

 

0.000

 

TOTAL IMPORTS

 

 

7.800

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

12.56

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

NA
NA
7.24

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

NA
NA
8.21

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

NA
NA
5.67

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

NA
NA
0.07

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.17

0.21

0.27

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

5.42

3.90

4.59

 


 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2011

 

31.03.2010

31.03.2009

 

(Rs. In Millions)

Sundry Creditors

 

 

 

-          Creditors Due Small Micro Enterprises 

0.000

0.000

0.000

-          Creditors Due Others 

29.785

32.025

45.583

 

 

 

 

Total

 

29.785

32.025

45.583

 

 

 

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

Yes

Type of Business

Yes

Line of Business 

Yes

Promoter’s Background 

-----

No. of Employees

Yes

Name of Person Contacted

Yes

Designation of Contact person

Yes

Turnover of Firm for last three years

Yes

Profitability for last three years

No

Reasons for variation <> 20%

-----

Estimation for coming financial year

Yes

Capital in the business

Yes

Details of sister concerns

Yes

Major Suppliers

No

Major Customers

No

Payments Terms

Yes

Export/ Imports Details (If applicable)

Yes

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

No

Incorporation details is applicable

-----

Last Accounts filed at ROC

-----

Major Shareholders, if available

-----

 

CONTINGENT LIABILITIES NOT PROVIDED FOR (AS ON 31.03.2011)

 

a. Guarantees provided by Bank Rs.3.631 Millions (Rs.3.631 Millions) against disputed excise liability and MPCB, Apparel Export Promotion Council & Custom.

 

b. Demand of Rs.0.039 Million (Rs.0.039 Millions) in respect of Octroi disputed by Company.

 

c. Demand of Rs.43.504 Millions (Rs.43.504 Millions) in respect of excise and penalty disputed by company. The company has deposited Rs.3.350 Millions (Rs.3.350 Millions) against the said demand.

 

d. Cash and Bank Balances include fixed deposits of Rs. Nil (Rs.7.500 Millions) pledged as security for credit facility granted to a related party.

 

e. Custom Duty on pending export obligation for import under EPCG Scheme of Rs. Nil (Rs.10.140 Millions)

 

f. Claim against the Company not acknowledged as debt Rs. 14.261 Millions (Rs.14.261 Millions). Hon’ble High Court - Mumbai by its order has decreed the relevant suit against the company with interest and cost. The Hon’ble Supreme Court has redirected the matter back to City Civil Court with the direction to dispose of the matter at the earliest as the Company has filed counter claim of Rs. 47.600 Millions in the matter. As directed by the Hon’ble High Court, the Company has deposited Rs. 4.400 Millions (.P.Y 4.400 Millions) with City Civil Court.

 

g. Customs and Central Excise Duty of Rs.2.910 Millions (Rs.2.910 Millions) and penalty, which is disputed by the Company.

 

h. Cess Liability of Rs.0.714 Millions (Rs.0.714 Millions) for the period 2001-2002 to 2003-04, which is disputed by the Company. The Company has paid Rs.0.456 Millions (Rs.0.456 Millions) against the said liability under protest.

 

i. Disputed income tax Demand of Rs.6.338 Millions (Rs.4.281 Millions) of which are pending before higher authorities.

 

 

 

Bankers Charges Report as per Registry

 

This form is for

Modification of charge

Charge identification number of the modified 

90158902

Corporate identity number of the company

U17100MH1993PTC075811

Name of the company

DEFIANCE KNITTING INDUSTRIES P LTD

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

K-6, Additional Ambernath, Industrial Estate Area, MIDC, Ambernath (East), Thane-421506, Maharashtra, India

rchamaria@mgbco.com

Type of charge

Book Debts

Movable Property (not being pledge)

Immovable Property 

Particular of charge holder

IDBI Bank Limited,

IDBI Tower WTC Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India

kumar.r@idbi.co.in

Nature of description of the instrument creating or modifying the charge

Supplemental deed of hypothecation made 04

Date of instrument Creating the charge

04.08.2010

Amount secured by the charge

Rs.79.000 Millions

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

Rate of Interest

As per Loan cum Hypothecation agreement dated 24th February, 2010, Supplemental Hypothecation agreement dated 04th August, 2010

 

Terms of Repayment

One year validity

 

Extent and Operation of the charge

The charge is to operate as a security for the repayment of Rs.79.000 Millions to the Bank

 

Others

Security by way of first charge

Short particulars of the property charged

All present and future stocks, raw materials, goods, book debts, vehicles and all other movable assets of the borrower and immovable property at Plot No.K-6, Addl Ambernath Ind Area, Thane.

Particulars of the present modification 

Increase of the following limits

Cash Credit Limit                     Rs.15.000 millions

Packing Credit Limit                 Rs.25.000 millions

Bill Discounting                       Rs.15.000 millions

Letter of Credit                        Rs.6.000 millions

Bank Guarantee                      Rs. 4.000 millions

LER (Limit Equivalent Risk)      Rs. 14.000 millions

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

Total                                       Rs.  79.000 millions

 

 

FIXED ASSETS:

 

·         Land

·         Building

·         Plant and Machinery

·         Office Equipment

·         Furniture and Fixtures

·         Vehicles

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

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

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

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

 

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

 

CONTRAVENTION

 

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

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.22

UK Pound

1

Rs.78.64

Euro

1

Rs.65.54

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

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.