MIRA INFORM REPORT

 

 

Report Date :

23.11.2012

 

IDENTIFICATION DETAILS

 

Name :

MAN TRUCKS INDIA PRIVATE LIMITED (w.e.f.30.03.2012)

 

 

Formerly Known As :

MAN FORCE TRUCKS PRIVATE LIMITED

 

 

Registered Office :

501-502, Kapil Zenith, Survey No. 55, Hissa No. 1, Behind Maratha Mandir, Bavdhan Khurd, Pune – 411021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

08.03.2006

 

 

Com. Reg. No.:

11-022147

 

 

Capital Investment / Paid-up Capital :

Rs.1115.942 Millions

 

 

CIN No.:

[Company Identification No.]

U34102PN2006PTC022147

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Buses and Trucks.

 

 

No. of Employees :

1000 (Approximately)

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 700000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. Even though the company has achieved better growth in its sales during 2011, it has incurred huge loss.

 

There appears huge accumulated losses recorded by the company.

 

Trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

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.

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Vinit Maheshwari

Designation :

Company Secretary

Contact No.:

91-20-66762525

Date :

22.11.2012

 

 

LOCATIONS

 

Registered Office :

501-502, Kapil Zenith, Survey No. 55, Hissa No. 1, Behind Maratha Mandir, Bavdhan Khurd, Pune – 411021, Maharashtra, India 

Tel. No.:

91-20-66762525

Fax No.:

Not Available

E-Mail :

vinit.maheshwari@in.man.eu

voak@manforcetrucks.com

Website :

http://www.mantrucksindia.com

Location :

Leased

 

 

Factory  :

Plot No.3B1, Sector 1, Pithampur Industrial Estate, District Dhar, Pithampur – 454775, Madhya Pradesh, India

Tel. No.:

91-7292-305051

Fax. No.:

91-7292-308180

 

 

DIRECTORS

 

As on: 24.09.2011

 

Name :

Mr. Jagdish Bhat

Designation :

Director

 

 

Name :

Mr. Vijay Kumar Yelne

Designation :

Director

 

 

Name :

Dr. Jens Foerst

Designation :

Director

Address :

Hangstr. 29, Gauting, 82131

Date of Birth/Age :

17.10.1965

Date of Appointment :

04.04.2012

DIN No.:

05245736

 

 

Name :

Dr. Thomas Konert

Designation :

Director

Address :

IM Wingert 38, Eschborn 65760

Date of Birth/Age :

27.06.1970

DIN No.:

05245767

 

 

KEY EXECUTIVES

 

Name :

Mr. Vinit Maheshwari

Designation :

Company Secretary

 

 

Name :

Ms. Vrushali Chinmay Oak

Designation :

Secretary

Address :

Flat no. 4, Sukhwani Udyan, Link Road, Chinchwad, Pune – 411033, Maharashtra, India

Date of Birth/Age :

01.12.1982

Date of Appointment :

01.10.2009

PAN No.:

BOYPS4094F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 24.09.2011

 

Names of Shareholders

 

No. of Shares

Abhay Navalmal Firodia

 

1

Prasan Abhay Firodia

 

1

Force Motors Limited, India

 

55797095

Sudhir Mehta

 

1

Mohanlal Chopda

 

1

M. Venkataiah

 

1

Vinay Mundada

 

1

Man Nutzfahrzeuge Aktiengesellschaft

 

55797101

 

 

 

Total

 

111594202

 

 

Names of Allottee

 

No. of Shares

MAN Trucks and Bus AG, Germany

 

23800000

 

 

 

Total

 

23800000

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 24.09.2011

 

Category

 

Percentage

 

 

 

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

 

50.00

Bodies corporate

 

50.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Buses and Trucks.

 

 

Exports :

 

Products :

Buses and Trucks

Countries :

Germany

 

 

Imports :

 

Products :

Material

Countries :

Germany

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

PRODUCTION STATUS (As on: 31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Commercial Vehicles

NOS.

24000

24000

4027

 

Note:

The Installed Capacity is on triple shift basis as estimated by the Directors and accepted by the Auditors without verification. During the financial year, the factory operated on single shift basis. Production included 10 Vehicles Capitalised.

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

1000 (Approximately)

 

 

Bankers :

·         Citi Bank

·         State Bank of India, Corporate Accounts Group, Voltas House, Ballard Estate, Mumbai - 400 001, Maharashtra, India

·         Canara Bank, Pimpri Branch, Station Road, Pimpri, Pune - 411018, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2011

As on

31.03.2010

Rupee term loans banks secured

460.726

999.903

Foreign currency loans banks secured

249.625

282.403

Working capital loans banks secured

110.482

264.255

 

 

 

Total

820.833

1546.561

 

Unsecured Loan

As on

31.03.2011

As on

31.03.2010

Other debt unsecured

880.000

500.000

 

 

 

Total

880.000

500.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

P.G. Bhagwat

Chartered Accountant

Address :

Suit No. 102, Orchard, Pune, Maharashtra, India

PAN No.:

AAZPA3362N

 

 

 

 

Parent Company :

MAN Trucks and Bus AG, Germany

 

 

Joint Ventures :

·         Force Motors Limited

·         MAN Trucks and Bus AG (formerly known MAN Nutzfahrzeuge AG)

 

 

Other Related Parties :

·         Jaya Hind Industries Limited

·         Pinnacle Industries Limited

·         MAN Nutzfahrzeuge Osterrieich AG

·         Jaya Hind Investments Private Limited

 

 

CAPITAL STRUCTURE

 

After: 24.09.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

135800000

Equity Shares

Rs.10/- each

Rs.1358.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

135394202

Equity Shares  

Rs.10/- each

Rs.1353.942 Millions

 

 

 

 

 

As on: 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

112000000

Equity Shares

Rs.10/- each

Rs.1120.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

111594202

Equity Shares  

Rs.10/- each

Rs.1115.942 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

1115.942

1115.942

1000.000

2] Share Application Money

0.000

0.000

2600.000

3] Reserves & Surplus

2484.057

2484.057

0.000

4] (Accumulated Losses)

(3422.521)

(2680.679)

(2377.353)

NETWORTH

177.478

919.320

1222.647

LOAN FUNDS

 

 

 

1] Secured Loans

820.833

1546.561

1432.018

2] Unsecured Loans

880.000

500.000

0.000

TOTAL BORROWING

1700.833

2046.561

1432.018

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1878.311

2965.881

2654.665

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1644.178

2361.943

1670.223

Capital work-in-progress

12.158

6.980

589.268

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

2676.545

2343.916

2683.310

 

Sundry Debtors

489.463

541.642

169.019

 

Cash & Bank Balances

149.368

158.816

64.681

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

847.441

915.958

774.560

Total Current Assets

4162.817

3960.332

3691.570

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

3179.983

2721.469

2755.098

 

Other Current Liabilities

654.871

584.497

497.481

 

Provisions

105.988

57.408

43.817

Total Current Liabilities

3940.842

3363.374

3296.396

Net Current Assets

221.975

596.958

395.174

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1878.311

2965.881

2654.665

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

9067.428

3908.746

1620.214

 

 

Other Income

223.377

184.706

42.746

 

 

TOTAL                                     (A)

9290.805

4093.452

1662.960

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials

7467.842

3267.100

1946.524

 

 

Other Expenses

2142.708

953.536

823.432

 

 

TOTAL                                     (B)

9610.550

4220.636

2769.956

 

 

 

 

 

Less

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

(319.745)

(127.184)

(1106.996)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

205.363

0.000

0.000

 

 

 

 

 

 

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

(525.108)

(127.184)

(1106.996)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

216.750

176.143

155.685

 

 

 

 

 

 

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

(741.858)

(303.327)

(1262.681)

 

 

 

 

 

Less

TAX                                                                  (H)

(0.016)

0.000

0.701

 

 

 

 

 

 

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

(741.842)

(303.327)

(1263.382)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(2680.679)

(2377.352)

(1113.970)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(3422.521)

(2680.679)

(2377.352)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1832.698

(1407.743)

(538.065)

 

TOTAL EARNINGS

1832.698

(1407.743)

(538.065)

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

0.000

0.000

(8.620)

 

 

Components

1069.232

(260.443)

(1632.281)

 

 

Capital Goods

0.110

(1.908)

(276.989)

 

 

Machinery Spares, Tools & Others

10.996

(8.104)

(0.690)

 

TOTAL IMPORTS

1080.338

(270.455)

(1918.580)

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(6.65)

(2.72)

(12.63)

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

(7.98)

(7.41)

(75.97)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

NA

(7.76)

(77.93)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(12.78)

(4.80)

(23.55)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(4.18)

(0.33)

(1.03)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

31.79

5.88

3.87

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.06

1.18

1.12

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

(Rs. In Millions)

Particulars

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

 

 

 

Creditors due small micro enterprises

0.000

0.000

0.000

Creditors due others

3179.983

2721.469

2755.098

 

 

 

 

Total

3179.983

2721.469

2755.098

 

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

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

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

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

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

No

 

 

OPERATIONS

 

(a) During the year and Report, the Company achieved a turnover of Rs.9290.000 Millions, which is higher by 115% of the turnover for the Financial Year 2009-10.

 

(b) The Company sold 3,970 numbers of Heavy Commercial Vehicles compared to 1,869 numbers sold during the year 2009-10.

 

(c) The Company’s effort to develop Tippers of 16 to 31 tons range met with success and the Company’s market share in this segment increased from 2% to 4.30% during the year and report.

 

(d) The Company’s performance in the haulage segment of the domestic market could not be improved due to non-availability of vehicles with low power density compared to similar products offered by the competition

 

(e) The domestic turnover for the year and report was Rs.6730.000 Millions (3,161 vehicles) compared to Rs.2510.000 Millions (1,202 vehicles), a growth of 168% percent over the previous year. Due to the reasons as set out and item (d) above, the Company could not achieve the envisaged domestic levels.

 

(f) The export turnover, for the year and report, was Rs.1790.000 Millions (809 vehicles) compared to Rs.1440.000 Millions (667 vehicles), a growth of 24% for the previous year. Due to various reasons, including quality and service issues and uncertainties in the export market, the Company could not achieve the envisaged export levels.

 

(g) Considering the low volumes of sales, intense efforts are required to be made by the Company to develop its distribution network.

 

(h) There has been an increase in the number of vehicles, manufactured by the Company operating in mines and projects. This could assist the Company to achieve higher penetration in the market. The technical integrity of the Company’s products, is seen to be advantageous.

 

Additional efforts, in after sale and service organization, in order to strengthen further the service capabilities and widen the net – including enhancing availability of spares have to be made.

 

(i) During the year and report, 3 prototypes of buses were developed. The bus body design is and intense discussions within the Company and with the Company’s Collaborator and Consultant, so as to freeze the product concept and develop further prototypes so as to achieve introduction of a fully factory built buses by fourth quarter of 2011.

 

(j) No rotary mechanical (VE) pump solution capable of offering BS III emission status was available from the MAN library of products for the D-08 engine. At the initiative of FORCE Motors Limited (FORCE) this development effort to suit the Indian conditions was initiated at Bosch. This Engine has been certified by ARAI. It is expected that this Engine with Mechanical Fuel Injection System, could be introduced in the last quarter of the current calendar year, subject to availability of requisite components in time. The initiative to develop an India specific BS III solution with 220 HP Engine is expected to reflect in a saving of approximately Rs. 0.050 Million per truck.

 

(k) Company’s various developmental efforts are being supported by MAN Truck and Bus AG (MTB) and FORCE.

 

(l) The technical superiority of the Company’s products is demonstrated by lower warranty cost, total warranty cost is less than 0.93% of the turnover of the Company for the year and report.

 

(m) Non-availability of appropriate product in the haulage segment and below capacity export performance along with high cost of material on the background of increasingly competitive market conditions have resulted in operational loss for the year and report. The total accumulated losses of the Company at the end of the year and report, were Rs.3422.500 Millions, which is more than 50% of the paid up share capital, and balance of share premium account as at 31st March, 2011.

 

 

(n) FORCE and MTB, the joint venture partners, are in dialogue in order to reenergize the Company’s operations. It is expected that  strategic decisions about restructuring of service and spare sale organization to further align the same with the product footprint, particularly for heavy Tippers for the mines sold by the Company would be taken shortly, so as to enable the Company to increase its turnover and to have better performance results by allowing higher margins. The Company has also approached the banke rs, who have extended working capital limits to the Company, to enhance these limits to step up its production.

 

 

FIXED ASSETS:

·         Land and Building

·         Factory Equipments

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles

·         Leasehold Properties

 

 


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.55.16

UK Pound

1

Rs.88.03

Euro

1

Rs.70.86

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

34

 

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.