MIRA INFORM REPORT
|
Report Date : |
05.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
EMAAR MGF CONSTRUCTION PRIVATE LIMITED |
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Registered
Office : |
28, ECE House, Kasturba Gandhi Marg, New Delhi-110001 |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
29.09.2006 |
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Com. Reg. No.: |
55-154556 |
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Capital
Investment / Paid-up Capital : |
Rs.54.853 millions |
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|
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CIN No.: [Company Identification
No.] |
U70109DL2006PTC154556 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELE04590F |
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PAN No.: [Permanent
Account No.] |
AABCE7912K |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Subject is engaged in the Business of Real Estate Development. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 3136000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is one of India’s leading Real Estate Developer. It is having
Moderate track record. There appear accumulated losses recorded by the
company. However, trade relations are reported to be fair. Business is
active. Payments are reported to be slow but correct. The company can be considered for business dealing 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.
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 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
CARE |
|
Rating |
B+ (Long term bank facilities) |
|
Rating Explanation |
Having high risk of default regarding timely servicing of financial
obligation. |
|
Date |
January, 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
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Registered Office : |
28, ECE House, Kasturba Gandhi Marg, New Delhi-110001, India |
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Tel. No.: |
91-11-41521155 |
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Fax No.: |
91-11-41524619 |
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E-Mail : |
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Website : |
DIRECTORS
As on 29.09.2011
|
Name : |
Sanjay Malhotra |
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Designation : |
Director |
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Address : |
Block-H, Flat No.38C, Saket, New Delhi-110017, India |
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Date of Birth/Age : |
04.09.1965 |
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Date of Appointment : |
07.08.2007 |
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DIN No.: |
00732180 |
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Other Directorship:
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Name : |
Manpreet Singh |
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Designation : |
Director |
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Address : |
H. No.4527A, Sector 70, SAS Nagar, Mohali-160062, Punjab, India |
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Date of Birth/Age : |
13-09-1975 |
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Date of Appointment : |
06.03.2009 |
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DIN No.: |
01194096 |
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Other Directorship:
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Name : |
Mr. Rohit Mishra |
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Designation : |
Director |
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Address : |
102 D, Pocket 1, Mayur Vihar Phase 1, Near Ram Mandir, New Delhi-110091,
India |
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Date of Birth/Age : |
09.03.1973 |
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Date of Appointment : |
08.03.2011 |
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DIN No.: |
03453277 |
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Other Directorship:
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KEY EXECUTIVES
|
Name : |
Mr. Hukam Singh Rawat |
|
Designation : |
Manager |
|
Address : |
ECE House, 28, Kasturba Gandhi Marg, New Delhi-110001, India |
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Date of Birth/Age : |
03-04-1974 |
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Date of Appointment : |
07/03/2009 |
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PAN No.: |
AFBPR2149R |
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Name : |
Mr. Manpreet Singh |
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Designation : |
Manager |
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Address : |
H. No.4527A, Sector 70, SAS Nagar, Mohali-160062, Punjab, India |
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Date of Birth/Age : |
13-09-1975 |
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Date of Appointment : |
15.11.2010 |
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PAN No.: |
AOIPS9491P |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.09.2011
|
Names of Shareholders |
|
No. of
Equity Shares |
|
Emaar MGF Land Limited, India |
|
7296 |
|
Emaar Holding II, Mauritius |
|
3520 |
|
MGF Developments Limited, India |
|
2500 |
|
Discovery Estates Private Limited, India |
|
200 |
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Mr. Chandeep Kumar |
|
1 |
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Mr. Bharat Bhushan Garg |
|
1 |
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Mr. Chintan Dewan |
|
1 |
|
Mr. Hukam Singh Rawat |
|
1 |
|
Total |
|
13520 |
As on 29.09.2011
|
Names of Shareholders |
|
No. of
Equity Shares |
|
Emaar MGF Land Limited, India |
|
5471819 |
|
Total |
|
5471819 |
Equity Share Break up (Percentage of Total Equity)
As on 29.09.2011
|
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 |
26.04 |
|
Bodies corporate |
73.96 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the Business of Real Estate Development. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
State Bank of India, Overseas Branch, Jawahar Vyapar Bhawan, 1,
Tolstoy Marg, New Delhi-110001, India |
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Facilities : |
Footnotes (A) Short term loan from Holding company |
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Banking
Relations : |
-- |
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Financial Institution: |
IL and FS Trust Company
Limited, IL and FS Financial Centreplot No C22 G Block Bandra, Kurla Complex
Bandra East, Mumbai - 400051, Maharashtra, India |
|
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Auditors : |
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|
Name : |
S.R. Batliboi and Company Chartered Accountants |
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Address : |
Hiindustan Times Building, 18-20, Kasturba Gandhi Marg, 6th Floor, New
Delhi-110001, India |
|
PAN No.: |
AALFS0506L |
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Holding company: |
Emaar Mgf Land
Limited PAN No.: AABCE4308B |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000 |
Equity Shares |
Rs.10/- each |
Rs.0.200 Millions |
|
5480000 |
Preference Shares |
Rs.10/- each |
Rs.54.800 Millions |
|
|
Total |
|
Rs.55.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13520 |
Equity Shares |
Rs.10/- each |
Rs.0.135 Millions |
|
5471819 |
Preference Shares |
Rs.10/- each |
Rs.54.718 Millions |
|
|
Total |
|
Rs.54.853
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 |
54.853 |
54.853 |
54.853 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
745.147 |
820.257 |
795.730 |
|
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4] (Accumulated Losses) |
(15.857) |
0.000 |
0.000 |
|
|
NETWORTH |
784.143 |
875.110 |
850.583 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1548.246 |
1383.589 |
2493.622 |
|
|
2] Unsecured Loans |
0.000 |
1971.854 |
2703.490 |
|
|
TOTAL BORROWING |
1548.246 |
3355.443 |
5197.112 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2332.389 |
4230.553 |
6047.695 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3.648 |
6.516 |
34.414 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.379 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
1927.709 |
0.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
13.562 |
4.165 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
647.565
|
2854.760 |
6223.546 |
|
|
Sundry Debtors |
349.009
|
317.766 |
464.116 |
|
|
Cash & Bank Balances |
26.821
|
313.767 |
415.453 |
|
|
Other Current Assets |
125.156
|
591.170 |
663.951 |
|
|
Loans & Advances |
2285.777
|
721.131 |
100.680 |
|
Total
Current Assets |
3434.328
|
4798.594 |
7867.746 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
611.195
|
1187.403 |
1412.332 |
|
|
Other Current Liabilities |
505.437
|
1290.625 |
416.733 |
|
|
Provisions |
17.903
|
37.800 |
32.204 |
|
Total
Current Liabilities |
1134.535
|
2515.828 |
1861.269 |
|
|
Net Current Assets |
2299.793
|
2282.766 |
6006.477 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
28.948 |
0.000 |
2.260 |
|
|
|
|
|
|
|
|
TOTAL |
2332.389 |
4230.553 |
6047.695 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
3592.332 |
8647.839 |
3177.138 |
|
|
|
Other Income |
|
27.801 |
2.735 |
|
|
|
TOTAL |
3592.332 |
8675.640 |
3179.873 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
|
3669.601 |
8373.190 |
2.925 |
|
|
|
Personnel Expenses |
|
33.618 |
0.000 |
|
|
|
Operating and Other Expenses |
|
75.283 |
127.034 |
|
|
|
TOTAL |
3669.601 |
8482.091 |
129.959 |
|
|
|
|
|
|
|
|
Less |
|
(77.269) (Including
Financial Expenses ) |
193.549 |
3049.914 |
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES
|
120.214 |
4.415 |
||
|
|
|
|
|
||
|
|
PROFIT BEFORE
TAX, DEPRECIATION AND AMORTISATION |
73.335 |
|
||
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
5.136 |
36.828 |
27.491 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
(82.405) |
36.507 |
94.167 |
|
|
|
|
|
|
|
|
|
Less |
TAX
|
8.562 |
11.916 |
34.046 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER
TAX |
(90.967) |
24.591 |
60.121 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
75.110 |
50.583 |
(9.474) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend on Preference shares |
NA |
0.055 |
0.055 |
|
|
|
Tax on Preference Dividend |
NA |
0.009 |
0.009 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
75.110 |
50.583 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
NA |
258.094 |
116.548 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
(16.58) |
1818.83 |
4446.88 |
|
|
|
Diluted |
NA |
0.45 |
1.12 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(2.53)
|
0.28 |
2.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
NA
|
0.42 |
2.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.40)
|
0.42 |
2.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.11)
|
0.04 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.42
|
6.71 |
8.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.03
|
1.91 |
4.23 |
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 |
No |
|
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 |
PERFORMANCE REVIEW
During the year
the turnover of the Company stood at Rs.3592.330 million as compared to Rs.
8675.640 million in the previous year. The Company has incurred loss of Rs.
90.960 million during the current financial year ended 31st March, 2011 as
compared to profit of Rs.24.59 million during the last financial year. The
current year loss was mainly due to higher interest costs charged to profit and
loss account.
The Company was
awarded the development of the 27.2 acre residential complex by Delhi
Development Authority (“DDA”), which is part of the Commonwealth Games Village
2010 complex (“CWGV Project”). The residential complex consists of 34 towers
comprising 1,168 apartments, which were used by athletes for the Commonwealth
Games event held in October 2010. Out of the said 1,168 apartments, DDA
originally had rights over 378 apartments, however, in order to assist us in
the timely completion of the project, the DDA agreed to buy the marketing
rights for further 333 apartments from us for a consideration of Rs.7,669
million pursuant to an agreement dated May 5, 2009.
For the purpose of
holding the Commonwealth games event, the apartments were handed over to DDA in
June 2010 and DDA had issued a temporary occupancy certificate vide its letter
no. F 13(127)07/B/731 dated 3rd September, 2010. However, d espite completion
of successful Commonwealth Games event in October 2010, DDA has not yet handed
over the possession of the apartments to the Company as per the provisions of
the Agreement with DDA for onward handing over to the apartment customers. DDA
has handed over the various towers to company in July-August 2011 for
refurbishing and effects rectification and thereafter the same may be handed
over to the respective allotters subject to the issuance of the Occupancy
Certificate by DDA. The Company has already started the process of
refurbishment and defects rectification.
In addition
various disputes have arisen between the Company, DDA and the contractor in
respect of the CWGV Project, the details of which are given under notes 6 and 7
of the Schedule 22 of the Notes to Accounts of the current year’s financial statements
and are also explained elsewhere in the report. Since the Company is under
litigation/negotiations in respect of various claims filed by /against it in
relation to the CWGV Project and any unfavorable outcome of these outstanding
litigations may result in it being not able to meet its obligations fully. In
view of the same, Emaar MGF Land Limited, the holding company, has undertaken
to continue to provide the Company with the financial support for meeting the
Company’s operating and capital funding requirements for the next financial
year and the near future.
Contingent
Liabilities not provided for
Claims received
from construction contractors, not accepted by the Company - Rs. 0.960 Million
The Company has been advised that these claims are not tenable.
FIXED ASSTES:
- Buildings
- Plant and Machinery
- Office Equipments
- Furniture and Fixtures
- Computers
- Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 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.51.97 |
|
|
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.67.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
31 |
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 |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.