MIRA INFORM REPORT

 

 

Report Date :

01.09.2012

 

IDENTIFICATION DETAILS

 

Name :

ARKEMA CHEMICALS INDIA PRIVATE LIMITED (w.e.f. 20.10.2011)

 

 

Formerly Known As :

CRAY VALLEY RESINS INDIA PRIVATE LIMITED

 

 

Registered Office :

Plot No.D-43 (1), Trans Thane Creek, M.I.D.C. Industrial Area, Shirvane Village, Navi Mumbai – 400 076, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

31.01.1997

 

 

Com. Reg. No.:

11-105589

 

 

Capital Investment / Paid-up Capital :

Rs.299.400 Millions

 

 

CIN No.:

[Company Identification No.]

U24132MH1997PTC105589

 

 

PAN No.:

[Permanent Account No.]

AAACC6482F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

The Company is in the business of manufacture and sale of a wide range of synthetic resins.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1079000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for small business dealings with some cautions.

 

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 :

Plot No.D-43 (1), Trans Thane Creek, M.I.D.C. Industrial Area, Shirvane Village, Navi Mumbai – 400 076, Maharashtra, India

Tel. No.:

91-22-65137101/ 27670901/ 27616038

Fax No.:

91-22-27687998/ 27670901

E-Mail :

tr.raghuraman@crayvalley.com

suresh.ramachandran@arkema.com

 

 

DIRECTORS

 

As on 26.06.2012

 

Name :

Mr. Suresh Ramachandran

Designation :

Managing Director

Address :

C-12, Fairlawn Society, Plot No.7, Sion Trombay Road, Chembur, Mumbai – 400 071, Maharashtra, India

Date of Birth/Age :

26.05.1966

Date of Appointment :

22.09.2011

DIN No.:

00818595

 

 

Name :

Mr. Roland Glotzer

Designation :

Director

Address :

9 Ardmore Pk, #09-01 Ardmore Pk, Singapore 59955,Singapore

Date of Birth/Age :

15.07.1948

Date of Appointment :

20.04.2012

DIN No.:

05256753

 

 

Name :

Mr. Dominique Gerard Namer

Designation :

Director

Address :

Royal Pavilion-Apt 1382, 688 Hua Shan, Lu, Shanghai, 200072 China

Date of Birth/Age :

19.01.1952

Date of Appointment :

01.07.2011

DIN No.:

01972656

 

 

Name :

Mr. Benjamin Olivier Jacquot

Designation :

Director

Address :

73 Rue Boursault, Paris, 75017, France

Date of Birth/Age :

17.09.1984

Date of Appointment :

01.07.2011

DIN No.:

03481945

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 26.06.2012

 

Names of Shareholders

 

No. of Shares

Arkema Asie S.A.S., France

29939998

Arkema France S.A., France

1

Total

29939999

 

As on 26.06.2012

 

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]

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is in the business of manufacture and sale of a wide range of synthetic resins.

 

 

Products :

Item Code No. (ITC Code)

39069010

Product Description

Acrylics

Item Code No. (ITC Code)

39081090

Product Description

Polyamides

Item Code No. (ITC Code)

39075000

Product Description

Alkyds and Hard Resins

Item Code No. (ITC Code)

39079120

Product Description

UPR

 

PRODUCTION STATUS (AS ON 31.12.2011)

 

Particulars

 

Unit

Installed Capacity

Actual Production

Synthetic resins [solids]

MT

12148

*10,524

Synthetic resins [with solvents]

MT

--

**12,818

 

Notes:

· *Includes production from sub-processors (solid output) 3,249 MT.

· **Includes production from sub-processors 5,177 MT and excludes semi finished goods and production for captive consumption.

· As per prevailing Industrial Licensing Policy, no Industrial License is required.

· Installed capacity is as certified by the management and has not been verified by auditors, as it is a technical matter.

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

BNP Paribas, 62, Homji Street, Fort, Mumbai – 400 001, Maharashtra, India

 

 

Facilities :

Secured Loans

31.12.2011

(Rs. In Millions)

31.12.2010

(Rs. In Millions)

Working capital loans banks secured

330.000

280.000

Total

330.000

280.000

 

 

 

Banking Relations :

--

 

 

Financial Institution :

Societe Generale, Maker Chamber 4, 13th Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India

 

 

Auditors :

 

Name :

SRBC and Company

Chartered Accountants

Address :

14th Floor, The Ruby, 29, Senapati Bapat Road, Dadar (West), Mumbai – 400 028, Maharashtra, India

PAN No.:

ABSFS4151K

 

 

Ultimate Holding Company:

Arkema France, France (w.e.f. 01.07.2011)

 

 

Holding Company :

Arkema ASIE SAS, France (w.e.f. 01.07.2011)

 

 

Subsidiary :

Noble Synthetics Private Limited, India

CIN No.: U21200MH1980PTC022545

 

 

Fellow Subsidiaries/ Associates :

v      Cray Valley Resins (Malaysia) SDN. BHD, Malaysia

v      Cray Valley Limited, U.K.

v      Sartomer Asia Limited, Korea

v      Arkema Peroxides India Private Limited, India (CIN No.: U24111TN1985PTC011641)

 

 

 

CAPITAL STRUCTURE

 

As on 26.06.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

30000000

Equity Shares

Rs.10/- each

Rs.300.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

29939999

Equity Shares

Rs.10/- each

Rs.299.400 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2011

31.12.2010

31.12.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

299.400

299.400

299.400

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.442

26.743

3.317

4] (Accumulated Losses)

(30.119)

0.000

0.000

NETWORTH

269.723

326.143

302.717

LOAN FUNDS

 

 

 

1] Secured Loans

330.000

280.000

190.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

330.000

280.000

190.000

DEFERRED TAX LIABILITIES

0.000

3.200

4.800

 

 

 

 

TOTAL

599.723

609.343

497.517

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

178.326

186.328

193.898

Capital work-in-progress

0.354

7.688

0.874

 

 

 

 

INVESTMENT

13.507

13.507

7.229

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
178.581
242.250

215.915

 

Sundry Debtors
376.668
355.366

335.202

 

Cash & Bank Balances
13.254
5.343

11.381

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
106.438
88.488

57.965

Total Current Assets
674.941

691.447

620.463

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
228.960
236.214

273.313

 

Other Current Liabilities
33.964
47.225

42.705

 

Provisions
4.481
6.188

8.929

Total Current Liabilities
267.405

289.627

324.947

Net Current Assets
407.536
401.820

295.516

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

599.723

609.343

497.517

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2011

31.12.2010

31.12.2009

 

SALES

 

 

 

 

 

Manufacturing Sales – Net

1548.380

1640.780

1414.148

 

 

Trading Sales 

 

 

61.982

 

 

Other Income

 

 

11.369

 

 

TOTAL                                     (A)

1548.380

1640.780

1487.499

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Sold

1552.440

1575.400

1247.464

 

 

Manufacturing Expenses

 

 

60.409

 

 

Personal Expenses

 

 

32.466

 

 

Administrative & Selling Expenses

 

 

46.877

 

 

TOTAL                                     (B)

1552.440

1575.400

1387.216

 

 

 

 

 

Less

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

(4.060)

65.380

100.283

 

 

 

 

 

Less

INTEREST                                                         (D)

35.220

21.220

20.554

 

 

 

 

 

 

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

(39.280)

44.160

79.729

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

20.340

18.930

18.015

 

 

 

 

 

 

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

(59.620)

25.230

61.714

 

 

 

 

 

Less

TAX                                                                  (H)

(3.200)

1.810

18.066

 

 

 

 

 

 

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

(56.420)

23.420

43.648

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

2.875

(40.773)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

NA

2.875

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. value of Exports

114.660

136.236

65.613

 

TOTAL EARNINGS

114.660

136.236

65.613

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

567.486

416.174

 

TOTAL IMPORTS

NA

576.486

416.174

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(1.88)

0.78

1.46

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2011

31.12.2010

31.12.2009

PAT / Total Income

(%)

(3.64)
1.43

2.93

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

NA
NA

4.18

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(6.99)
2.87

7.58

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.22)
0.08

0.20

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.21
1.75

1.70

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

2.52
2.39

1.91

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

No

 

 


BACKGROUND

 

The Company was originally incorporated in the name of Cray Valley Resins India Private Limited (‘CVRIPL’) on 31st January, 1997. Pursuant to amendment to Section 43A by virtue of Companies (Amendment) Act, 2000, CVRIPL converted itself into a Private Limited company effective October 2001.

 

The Company is in the business of manufacture and sale of a wide range of synthetic resins. The Company was a subsidiary of Cray Valley S.A France, which is in turn a wholly owned subsidiary of Total S.A., France being the ultimate holding company. Effective 1st July 2011, Total S.A, the ultimate holding company divested it’s entire shareholding in CVRIPL held by it’s fully owned subsidiaries Cray Valley S.A and Total Chimie S.A to Arkema Group composed of Arkema S.A, Arkema France and all it’s subsidiaries. The name of the company was changed to ACIPL from the former name of CVRIPL on 20th October 2011 following the acquisition of ownership by Arkema Group.

 

FINANCIAL PERFORMANCE

 

During the year, Sales at Rs.1548.380 millions was lower by about 5.63% over the previous year sales amounting to Rs.1640.780 millions due to unfavourable market conditions throughout the world. Further the export turnover of the Company declined by 15.84% to Rs.114.660 millions, as compared to previous year export turnover amounting to Rs.136.240 millions.

 

The Sales Volume decreased by 12.6% over 2010 owing to depressed market conditions, volatilities in exchange rates between INR. USD and uncertainties relating to price and availability of key inputs. The sales volume of Polyamides and Acrylics decreased significantly by 16% while Alkyds volume dropped by about 10% and Oilfree Polyesters were lower by about 2% in the current year over the previous year.

 

The margin on all the manufactured products in 2011 was lower by about 2% over 2010 owing to drop in margins of Alkyds by 4%, Acrylics by 3% and Oilfree polyesters by 2% while the margins for Polyamides improved by 1%. The drop in the margin is attributable to increase in the input costs by about 9.6% while the average selling prices could improve only by about 7.6% in the current year over the previous year owing to intense resistance by the market to absorb the increase in input costs.

 

The personnel expenses increased by 15.15% to Rs.39.970 Millions and the manufacturing costs declined by 3.25% to Rs.60.030 Millions. The administration and selling costs recorded 6.83% increase over the previous year. The structural costs are kept in control despite negative impact of high inflation witnessed in the current year.

 

The borrowing costs were higher on account of increase in average cost of borrowings by about 65.97% in the year 2011 over the previous year due to increase in external borrowing by Rs.50.000 millions in the current year and also increase in average rate of interest by 3% in the current year over the previous year.

 

Due to these reasons, during the year, there was loss of Rs.56.420 Millions of the Company as compared to profit of Rs.23.430 Millions (previous year).

 

Due to unfavourable market conditions and stiff competition in the market, the Company was not able to achieve better results as was estimated. Similarly, the Company could not meet the expansion programme due to slow down of economy in India. The directors are confident of better results in the forthcoming year.

 

In view of decline in profit during the year and to strengthen reserves of the Company, the directors express their inability to recommend payment of any dividends in the year.

 

CHANGE IN NAME OF THE COMPANY

 

There was change in management of the Company. Arkema Asie S.A.S has acquired 100% equity from Cray Valley S.A. France. Consequently, the name of the Company was changed from Cray Valley Resigns India Private Limited to Arkema Chemicals India Private Limited w.e.f. 20th October, 2011.

 

FINANCE

 

At the balance sheet date (31.12.2011) working capital demand loans stood at Rs.330.000 Millions as against Rs.280.000 Millions as on 31.12.2010. There was an increase in Secured Loan by Rs.50.000 Millions due to meet the Working Capital requirements.

 

FUTURE PROSPECTS

 

The management has implemented business plan to restore and improve profitability while reinforcing it’s commitment to maintain and improve the safety in operations. The plan envisages strengthening customer relationship, optimizing product portfolio and mix, explore export opportunities vigorously and explore opportunities for new products drawing from the global expertise and R&D activities of the group. The management is confident that the actions taken by the company will help to revive the company and put it back on the track of growth in 2012.

 

CONTINGENT LIABILITIES:

 

Particulars

31.12.2011

(Rs. in millions)

31.12.2010

(Rs. in millions)

Income tax matters under appeal

23.652

22.165

 

 

 

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U24132MH1997PTC105589

Name of the company

CRAY VALLEY RESINS INDIA PRIVATE LIMITED

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

Plot No.D-43 (1), Trans Thane Creek, M.I.D.C. Industrial Area, Shirvane Village, Navi Mumbai – 400 076, Maharashtra, India

E-Mail: tr.raghuraman@crayvalley.com

This form is for

Modification of charge

Charge identification number of the charge to be modified

90146746

Type of charge

Book debts

Movable property (not being pledge)

Others (Entire Current Assets)

Particular of charge holder

Societe Generale, Maker Chamber 4, 13th Floor, Nariman Point, Mumbai – 400 021, Maharashtra, India

E-Mail: milind.kulkarni@socgen.com

Nature of instrument creating charge

Supplemental Agreement of Hypothecation

Date of instrument Creating the charge

23.09.2011

Amount secured by the charge

Rs.160.000 Millions

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

Rate of interest

CC / WCDL / LC / BG - To be on the mutually agreeable basis

 

Terms of repayment

On demand or on maturity, subject to periodic review by the bank

 

Margin

Raw Material , WIP, Finished Goods - 10%

Book Debts up to 120 days - 15%

 

Extent and operation of the charge

By way of First Pari Passu Charge on the entire Current Assets including Stock, Book Debts and Moveable Assets of  the Company

Short particulars of the property charged (Including location of the property)

First Pari Passu Charge on the entire Current Assets including Stock, Book Debts and Moveable Assets of  the Company

Particulars of the present modification

Modification in the hypothecation charge, being enhanced from Rs.100.000 millions to Rs.160.000 millions

 

FIXED ASSETS

 

v      Goodwill

v      ERP Software

v      Leasehold Land

v      Buildings

v      Plant and Machinery – Coating

v      Plant and Machinery – UPR

v      Effluent Treatment Plant

v      Electrical Installations

v      Computers

v      Furniture and Fittings

v      Vehicles

v      Equipments

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

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

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.72

UK Pound

1

Rs.87.95

Euro

1

Rs.69.65

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--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

 

27

 

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.