MIRA INFORM REPORT

 

 

Report Date :

05.11.2012

 

IDENTIFICATION DETAILS

 

Name :

MOBIS INDIA LIMITED

 

 

Registered Office :

G-1-G4, Sipcot Industrial Park, Irrungattukottai, Sriperumbudur, Kancheepuram-602105, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

06.06.2005

 

 

Com. Reg. No.:

18-56533

 

 

Capital Investment / Paid-up Capital :

Rs.2521.042 millions

 

 

CIN No.:

[Company Identification No.]

U50300TN2005PLC056533

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEN07993G

 

 

PAN No.:

[Permanent Account No.]

AAECM3018M

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The company is engaged in the business of manufacture, supply, sale, import and export of module parts and trading of after sales genuine spare parts.

 

 

No. of Employees :

300 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (67)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 20000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of Hyundai Mobis Company Limited, Korea.

 

It is an established company having fine track. There appears some dip in the profitability of the company. However, financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal 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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Term Loan = A+

Rating Explanation

Adequate credit quality. It carries average credit risk

Date

21.05.2012

 

Rating Agency Name

ICRA

Rating

Fund Facilities = A1

Rating Explanation

Highest credit quality. It carries lowest credit risk

Date

21.05.2012

 

 

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 :

G-1-G4, Sipcot Industrial Park, Irrungattukottai, Sriperumbudur, Kancheepuram-602105, Tamilnadu, India

Tel. No.:

91-44-67101073 / 67101000 / 67101051

Fax No.:

91-44-67101009

Email :

hoanjung@gmobis.com

janakiraman@gmobis.com

Website :

http://www.gmobis.com

Area :

Owned

 

 

Factory :

Located at Sriperumbudur, Tamilnadu, India

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Jae Ho Jeong

Designation :

Director

Address :

Srinivasa House No.50 (Old NO.54), 1st Floor, 1st Main Road, R.A. Puram, Chennai – 600028, Tamilnadu, India

Date of Birth/Age :

19.10.1970

Qualification :

Bachelor Degree

Date of Appointment :

30.09.2010

DIN :

02422303

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

U32300TN2007PTC064721

HYUNDAI AUTONET INDIA PRIVATE LIMITED

Additional director

29-10-08

29-10-08

-

Amalgamated

NO

2

U50300TN2005PLC056533

MOBIS INDIA LIMITED

Director

30-09-10

21-01-10

-

Active

NO

 

 

Name :

Mr. Han Yongcheol

Designation :

Additional Director

Address :

Des Whispering, Heights Newno.132, Old No.138, St. Marrys Road, Alwarpet, Chennai – 600018, Tamilnadu, India

Date of Birth/Age :

09.08.1964

Qualification :

Mechanical Engineering

Date of Appointment :

25.02.2011

DIN :

02932654

 

 

Name :

Mr. Kim Soon Hwa

Designation :

Additional Director

Address :

Sam Sin Hyundai Apt. 106-503, 1461-3 Samsan-Dong, Nam-Gu Ulsan Metropolitan, Ulsan Metropolitan – 680767, South Korea

Date of Birth/Age :

01.03.1951

Date of Appointment :

30.09.2010

DIN :

02971010

 

 

KEY EXECUTIVES

 

Name :

Mr. Janakiraman N

Designation :

Secretary

Address :

2nd Floor, 21-24, Veidhyanadhan St. Shenoy Nagar, Chennai – 600030, Tamilnadu, India

Date of Birth/Age :

29.05.1984

Date of Appointment :

21.01.2010

Pan No. :

AMQPJ5571R

                       

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

Hyundai Mobis Company Limited, Korea

 

2521036

Kim Chang Sik

 

1

Han Yong Cheol

 

1

Lee Sang Kug

 

1

Jeong Jae Ho

 

1

Yun Hee Seoung

 

1

Jong Ok Lee

 

1

Total

 

2521042

 

 

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in the business of manufacture, supply, sale, import and export of module parts and trading of after sales genuine spare parts.

 

 

Products :

Product Description

Item Code

Front End Module

34209

Cockpit

34209

Rear Chasis

34209

Front Chasis

34209

Others

34209

Spares for Resale

34209

 

PRODUCTION STATUS (As on 31.03.2011)

 

Particulars

Unit

Installed Capacity*

Actual Production

 

 

 

 

Module Components Parts – Front and Module, Cockpit Front Chassis and Rear Chassis

Nos.

1800000

1595594

 

 

 

 

 

* Installed capacities are as certified by management and relied on by the auditors. The installed capacity is subject to product mix, utilisation of plant and machinery which is common for different models and availing of facilities of others.

 

GENERAL INFORMATION

 

Suppliers :

·         Hyundai Mobis Company Limited, Korea

·         Wuxi Mobis Automotive Parts Company Limited, (Jiang Su Province)

·         Mobis Parts Europe N.V, Belgium

 

 

Customers :

·         Hyundai Mobis Company Limited., Korea

·         Mobis Parts America LLC, USA

·         Mobis Parts Europe N.V, Belgium

·         Mobis Parts Europe (UK Branch)

·         Mobis Auto Parts Middle East , Egypt

·         Mobis Parts Australia Pty Limited, Australia

·         Mobis Parts Middle East FZE, Dubai

·         Mobis Parts Europe N.V.OT, Brenna

 

 

No. of Employees :

300 (Approximately)

 

 

Bankers :

·         HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

·         State Bank of India, No. 64, Greams Road, Chennai - 600006, Tamilnadu, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2011

As on

31.03.2010

Rupee term loans banks secured

1910.118

2843.883

Total

1910.118

2843.883

 

 

Unsecured Loan

As on

31.03.2011

As on

31.03.2010

Rupee term loans banks unsecured

446.500

902.800

Working capital loans others unsecured

0.000

226.309

Total

446.500

1129.109

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

BSR and Associates

Chartered Accountants

Address :

No.10, Mathatma Gandhi Road, Nugambakkam, Chennai – 600034, Tamilnadu, India

Tel. No.:

91-44-39145000

Fax No.:

91-44-38145999

PAN.:

AADFB6889R

 

 

Holding Company :

Hyundai Mobis Company Limited, Korea

 

 

Enterprises having significant influence :

·         Hyundai Motor India Limited, India

·         Mobis Parts America LLC, USA

·         Mobis Parts Europe N.V, Belgium

·         Mobis Parts Europe (UK Branch)

 

 

Fellow Subsidiaries :

·         Mobis Auto Parts Middle East, Egypt

·         Mobis Parts Australia Pty Limited, Australia

·         Mobis Parts Middle East FZE, Dubai

·         Mobis Parts Europe N.V.OT, Brenna

·         Wuxi Mobis Automotive Parts Company Limited (Jiang Su Province)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2685000

Equity Shares

Rs.1000/-each

Rs.2685.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2521042

Equity Shares

Rs.1000/-each

Rs.2521.042 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

2521.042

2420.648

2420.648

2] Share Application Money

0.000

100.394

0.000

3] Reserves & Surplus

2716.295

1885.766

0.000

4] (Accumulated Losses)

0.000

0.000

(411.498)

NETWORTH

5237.337

4406.808

2009.150

LOAN FUNDS

 

 

 

1] Secured Loans

1910.118

2843.883

3607.200

2] Unsecured Loans

446.500

1129.109

2047.400

TOTAL BORROWING

2356.618

3972.992

5654.600

DEFERRED TAX LIABILITIES

292.558

216.780

243.299

 

 

 

 

TOTAL

7886.513

8596.580

7907.049

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

5733.996

5611.729

6070.165

Capital work-in-progress

14.150

200.896

23.133

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2371.468
1991.232

1414.825

 

Sundry Debtors
3046.030
3895.519

3942.958

 

Cash & Bank Balances
964.245
2419.820

172.073

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
1248.210
885.570

644.611

Total Current Assets
7629.953
9192.141

6174.467

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditors
5225.883
5404.854

4183.449

 

Other Current Liabilities
221.602
487.106

155.012

 

Provisions
44.101
516.226

22.255

Total Current Liabilities
5491.586
6408.186

4360.716

Net Current Assets
2138.367
2783.955

1813.751

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

7886.513

8596.580

7907.049

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

31249.973

31106.272

21517.784

 

 

Other Income

288.279

1043.978

132.311

 

 

TOTAL                                     (A)

31538.252

32150.250

 

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

27166.007

26723.053

 

 

Manufacturing service costs

1481.978

1157.841

21345.748

 

 

Employee related expenses

347.216

268.103

 

 

 

Administrative selling other expenses

324.879

257.224

 

 

 

TOTAL                                     (B)

29320.080

28406.221

21345.748

 

 

 

 

 

Less

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

2218.172

3744.029

304.347

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

83.521

138.162

230.176

 

 

 

 

 

 

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

2134.651

3605.867

74.171

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

767.283

725.730

706.297

 

 

 

 

 

 

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

1367.368

2880.137

(632.126)

 

 

 

 

 

Less

TAX                                                                  (H)

536.839

729.124

48.062

 

 

 

 

 

 

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

830.529

2151.013

(680.188)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1802.942

(411.498)

268.890

 

 

 

 

 

 

Transfer Pursuant to the Scheme of Amalgamation

0.000

63.427

0.000

 

 

 

 

 

 

BALANCE / (LOSS) CARRIED TO THE B/S

2633.471

1802.942

(411.498)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1015.364

1063.746

677.109

 

TOTAL EARNINGS

1015.364

1063.746

677.109

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

7174.080

5596.624

3033.032

 

 

Spares for resale

998.406

887.789

912.886

 

 

Capital Goods

171.205

22.147

206.999

 

TOTAL IMPORTS

8343.691

6506.560

4152.917

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

 

889

(281.08)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
2.63

6.69

(3.14)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.35
9.26

(2.94)

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
10.23
19.46

(5.16)

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.26
0.65

(0.31)

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.50
2.36

4.98

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
1.39
1.43

1.42

 

 

 

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

Yes

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]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

Note : 

Registered office address of the company has been shifted from Flat No. 2A, No. 40, Old LNO. 12, Jeyamkondar, Murray Gate Road, Alwarpet, Chennai-600018, Tamil Nadu, India to the present address w.e.f. 22.05.2006

 

BACKGROUND

 

Description of Business

 

Subject was incorporated on 6 June 2005 as per the provisions of the Companies Act, 1956 as a wholly owned subsidiary of Hyundai Mobis Company Limited, Seoul, Korea. The Company is engaged in the business of manufacture, supply, sale, import and export of module parts and trading of after-sales genuine spare parts. The manufacturing facility of the Company is located at Sriperumbudur, Tamilnadu.

 

 

OPERATIONS DURING THE YEAR:

 

The review of the Companys results for this financial year represents operations on full scale basis and accordingly the members may note that total turnover of the Company for the year ended 31st March 2011 was at Rs.34301.300 Millions compared to Rs.34075.400 Millions in the previous year.

 

The Companys operations have stabilized in a record time as reflected by the operating results of the Company. The board thankfully acknowledges the contributions made by all sections of the employees of the Company, the technical support provided by Hyundai Mobis, Korea and the support extended by Hyundai Motor India Limited in achieving these performances.

 

 

CONTINGENT LIABILITIES:

Rs. In Millions

Particulars

31.03.2010

31.03.2009

Estimated amount of contracts remaining to be executed on capital account and not provided for [net of advance]

338.474

8.870

Bank Guarantee

62.418

45.443

 

 

FIXED ASSETS:

 

·         Land – Freehold

·         Land – Leasehold

·         Building

·         Tools Moulds and Fixtures

·         Furniture and Fittings

·         Computers

·         Plant and Machinery

·         Office Equipments

·         Motor 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 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 :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

67

 

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.