MIRA INFORM REPORT

 

 

Report Date :

05.11.2012

 

IDENTIFICATION DETAILS

 

Name :

CHIPTEST ENGINEERING LIMITED [w.e.f. 15.05.2009]

 

 

Formerly Known As :

CHIPTEST LABS LIMITED [w.e.f. 15.05.2007]

 

CHIPTEST LABS PRIVATE LIMITED

 

 

Registered Office :

No 2C, CMDA Industrial Estate, Dr. Subramania Siva Salai, NH-7, Maraimalai Nagar, Kancheepuram-603209, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

05.02.2001

 

 

Com. Reg. No.:

18-046563

 

 

Capital Investment / Paid-up Capital :

Rs.4.125 Millions

 

 

CIN No.:

[Company Identification No.]

U32107TN2001PLC046563

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEC05846B

 

 

PAN No.:

[Permanent Account No.]

AAFCS1531A

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing IC Application Software Development Services.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 172000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having good track. It has achieved better growth in its revenue from its operations during 2012. The profitability appears to be good.

 

Trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good 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.

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’ 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.

 

 

LOCATIONS

 

Registered Office / Head Quarter / Operations :

No 2C, CMDA Industrial Estate, Dr. Subramania Siva Salai, NH-7, Maraimalai Nagar, Kancheepuram-603209, Tamilnadu, India 

Tel. No.:

91-44-47405419

Fax No.:

91-44-47405303

E-Mail :

msekar@chiptest.in

info@chiptestinc.com

 

 

US Office :

848, Stew Art Drive, Suite # 101, Sunny Vale CA, 94085, USA

Tel. No.:

+1 (408) 498 4629

 

 

DIRECTORS

 

As on 18.07.2012

 

Name :

Dr. Ramasamy Krishnan

Designation :

Director

Address :

W-649, 8th Street, Anna Nagar West Extension, Chennai – 600 101, Tamilnadu, India

Date of Appointment :

28.03.2008

DIN No.:

00062318

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

Date of cessation

Company/ LLP Status

Defaulting status

1

U24294TN1995PLC033148

SPIC AROMATICS AND CHEMICAL CORPORATION LIMITED

Director

03/02/2003

03/02/2003

-

Strike off

NO

2

U51101TN1994PLC026632

SPIC PETROCHEMICALS LIMITED

Whole-time director

01/03/2003

01/03/2003

01/03/2008

Under liquidation

NO

3

U11101TN1989PLC017403

NATIONAL AROMATICS AND PETROCHEMICALS CORPORATION LIMITED

Director

07/04/2004

07/04/2004

25/03/2008

Active

NO

4

U32107TN2001PLC046563

CHIPTEST ENGINEERING LIMITED

Director

28/03/2008

28/03/2008

-

Active

NO

5

U64201TN1999PLC041778

ACCUSPEED ENGINEERING SERVICES INDIA LIMITED

Director

16/07/2010

21/04/2010

-

Active

NO

6

L74900TN2004PLC053467

SICAGEN INDIA LIMITED

Director

02/08/2012

23/08/2011

-

Active

NO

7

L24119TN1971PLC006083

TUTICORIN ALKALI CHEMICALS AND FERTILIZERS LIMITED.

Director

25/07/2012

18/01/2012

-

Active

NO

 

 

Name :

Mr. Porura Vedagiri

Designation :

Director

Address :

9D, 12th Cross Street, Sashthiri Nagar, Adyar, Chennai – 600 020, Tamilnadu, India

Date of Birth/Age :

09.11.1942

Date of Appointment :

18.07.2012

DIN No.:

00846734

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

Date of cessation

Company/ LLP Status

Defaulting status

1

U65933TN1983PLC009993

GOLD NEST TRADING COMPANY LIMITED

Director

28/07/2003

28/07/2003

18/05/2009

Active

NO

2

U74140TN2005PLC055505

VALINGRO EXPONENTA LIMITED

Director

30/07/2010

25/02/2010

-

Active

NO

3

U72300TN1998PLC040081

CHERRYTEC INTELISOLVE LIMITED

Director

20/07/2011

10/09/2010

-

Active

NO

4

U32107TN2001PLC046563

CHIPTEST ENGINEERING LIMITED

Director

18/07/2012

24/01/2011

-

Active

NO

 

 

Name :

Dr. Enakshi Bhattacharya

Designation :

Director

Address :

C-5-5, 4th Cross Street, IIT Madras, Chennai – 600 036, Tamilnadu, India

Date of Birth/Age :

23.04.1959

Date of Appointment :

18.07.2012

DIN No.:

05277571

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

Date of cessation

Company/ LLP Status

Defaulting status

1

U32107TN2001PLC046563

CHIPTEST ENGINEERING LIMITED

Director

18/07/2012

19/04/2012

-

Active

NO

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 18.07.2012

 

Names of Shareholders

 

No. of Shares

 

Chip Test Incorporated, USA

 

80000

Valingro Consultancy Limited

 

19960

South Indian Travels Private Limited

 

156250

Gold Nest Trading Company Limited

 

156250

K.K. Rajagopalan

 

10

M. Sankara Subramanian

 

10

S. Ravi Chandran

 

10

S. Magesh

 

10

Total

 

412500

 

 

AS ON 18.07.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

19.30

Bodies corporate

 

80.60

Other top fifty shareholders

 

0.10

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing IC Application Software Development Services.

 

 

Product / Services :

PRODUCT DESCRIPTION

 

ITEM CODE

IC Application Software Development

8950

 

 

 

GENERAL INFORMATION

 

Customers :

·         Cherrytec

·         Accuspeed Engineering

·         Vibrant

·         Natronix

·         Springboards

 

 

No. of Employees :

Not Available

 

 

Bankers :

·         Punjab National Bank, Purasawalkam Branch, 21, Raja Annamalai Road, Chennai-600084, Tamilnadu, India

·         Indian Overseas Bank

 

 

Facilities :

Secured Loan

As on 31.03.2012

[Rs. in Millions]

As on 31.03.2011

[Rs. in Millions]

Term Loan

 

 

From Indian Overseas Bank

[Secured by hypothecation of fixed assets machinery from other parties]

2.664

5.060

Loans and Advances From Related parties

11.187

10.770

TOTAL

13.851

15.830

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

M.K. Dandeker and Company

Chartered Accountants

Address :

244, Angappa Naicken Street, Chennai-600001, Tamilnadu, India

Tel. No.:

91-44-25222100

Fax No.:

91-44-25220721

E-Mail :

dandeker@vsnl.com

dandeke@eth.net

PAN No:

AAAFM0865H

 

 

Holding Company :

Chip Test Incorporated, USA

 

 

Associates :

Valingro Exponents Limited and Chip Test, USA 

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

500000

Equity Shares

Rs.10/- each

Rs.5.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

412500

Equity Shares

Rs.10/- each

Rs.4.125 millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

4.125

4.125

1.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

38.937

31.665

26.490

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

43.062

35.790

27.490

LOAN FUNDS

 

 

 

1] Secured Loans

13.851

15.830

11.336

2] Unsecured Loans

0.000

0.000

17.724

TOTAL BORROWING

13.851

15.830

29.060

DEFERRED TAX LIABILITIES

3.769

4.253

4.524

 

 

 

 

TOTAL

60.682

55.873

61.074

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

34.231

32.537

39.432

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

1.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

10.875

12.579

13.502

 

Cash & Bank Balances

18.107

14.085

9.830

 

Other Current Assets

0.086

0.149

0.000

 

Loans & Advances

4.282

3.958

4.433

Total Current Assets

33.350

30.771

27.765

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

0.000

0.000

3.212

 

Other Current Liabilities

6.845

5.454

1.504

 

Provisions

1.054

1.981

1.407

Total Current Liabilities

7.899

7.435

6.123

Net Current Assets

25.451

23.336

21.642

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

60.682

55.873

61.074

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

65.615

50.668

42.731

 

 

Other Income

1.450

0.857

1.306

 

 

TOTAL                                     (A)

67.065

51.525

44.037

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee Benefit Expenses

25.793

18.087

0.000

 

 

Other Expenses

21.484

17.426

25.991

 

 

Extraordinary Items

0.000

1.501

(0.009)

 

 

TOTAL                                     (B)

47.277

37.014

25.982

 

 

 

 

 

Less

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

19.788

14.511

18.055

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.775

1.773

2.084

 

 

 

 

 

 

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

19.013

12.738

15.971

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

8.250

7.690

7.612

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

10.763

5.048

8.359

 

 

 

 

 

Less

TAX                                                                  (H)

3.491

1.255

0.942

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

7.272

3.793

7.417

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

26.484

19.067

 

 

 

 

 

Less

INCOME TAX FOR EARLIER YEARS

NA

0.492

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

29.785

26.484

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

NA

52.690

38.834

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods and Spares

NA

4.620

5.361

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

17.63

9.19

74.00

 

 


KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

10.84

7.36

16.84

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

16.40

9.96

19.56

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

15.93

7.97

12.44

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.25

0.14

0.30

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.51

0.65

1.27

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

4.22

4.14

4.53

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

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

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

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

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

Yes

19]

Payments terms

No

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

--

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]

Date of Birth of Proprietor/Partner/Director, if available

Yes

33]

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

No

34]

External Agency Rating, if available

No

 

 

NOTE:

 

The registered office of the company has been shifted from 5, CMDA Industrial Estate, MM Nagar, Chennai-603209, Tamilnadu, India to the present address w.e.f. 01.07.2011.

 

 

FINANCIAL PERFORMANCE:

 

In terms of percentage of total revenue, the operating profit (PBIDT) for the year is 30%, PBT is 16% and PAT is 11%.

 

 

PRODUCTS AND SERVICES:

 

The company has increased the Customer base for the Test Engineering projects which has increased substantially from the previous financial year. A strong base has been set on the execution of test engineering support on new products as well as conversion of established products from older legacy tester platform to newer tester platforms. Couple of new Customers have been added which has brought in the required Sales and is expected to bring in more project work in the next fiscal year. New tester platform has been added to meet the request from existing Customers, which again is expected to grow the business multi-fold. The Company is working out the plan to expand the capability of both the equipment and the engineering manpower resource. Few experienced test engineering resources have been hired in the last quarter and expected to take-up projects from next year

 

The company was able to identify few Customers in India who have started using the Verigy Tester Platform for their test engineering needs. This should take care of the lower utilization of this tester platform for Production requirements, which is on the decline. The tester has been configured with the minimum resources and the company is working out the financial plan for enhancing the same to handle the engineering business on this platform. Customers have also shown keen interest with the company for provision of the complete Qualification and Reliability services, Characterization services and Bench Evaluation Service.

 

In addition to the test engineering, characterization and allied product engineering business, the company has been developing the expertise of design and fabrication of mechanical spare items, used in the various automated test handlers. The company has grown this expertise in a separate business line of Test Equipment Products. The company is also working on the design and development of an Automatic Test handler, the proto type of which will be evaluated in the first quarter of next financial year. This can be marketed to show the capabilities in Equipment manufacturing and capture neb business in the Semiconductor industry. The company also plans to develop the expertise of support in Embedded FPGA Design area, working in partnership with few Customers. Thus, in addition to supplying the test equipment, the company can provide a total solution to its customers on the testability of at their new products being designed.

 

The Company is in the process of expanding the facilities to accommodate the increased need of office space and test floor area. New built-up area has been identified for this purpose and the augmentation of the infrastructure facilities is being planned in the forthcoming financial year. This will help the Company to launch into the next phase of growth level and increase the business several fold.

 

 

FIXED ASSETS:

 

·         Plant and Machinery

·         Computers

·         Office Equipments

·         Furniture

·         Building

 

 

 


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 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.53.66

UK Pound

1

Rs.86.37

Euro

1

Rs.69.24

 

 

INFORMATION DETAILS

 

Report Prepared by :

TPT / SMN


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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.