MIRA INFORM REPORT

 

 

Report Date :

12.09.2012

 

IDENTIFICATION DETAILS

 

Name :

REED ELSEVIER INDIA PRIVATE LIMITED

 

 

Registered Office :

305, Rohit House, 3 Tolstoy Marg, New Delhi - 110001

 

 

Country :

India

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

08.04.1996

 

 

Com. Reg. No.:

55-077903

 

 

Capital Investment/ Paid-up Capital:

Rs.772.814 Millions

 

 

CIN No.:

[Company Identification No.]

U72900DL1996PTC077903

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELR08437C

 

 

PAN No.:

[Permanent Account No.]

AAACR4727J

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Providing professional information and online workflow solutions in the Science, Medical, Legal, Risk Information and Analytics and Business sectors.

 

 

No. of Employees:

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (15)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow and delayed

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of Reed Elsevier Overseas B.V. The Netherlands. It is an established company having moderate track. Financial position of the company is under severe pressure.

 

It has incurred heavy loss during 2011. Accumulated loss of the company has exceeded the networth, causing threat to the liquidity of the company. 

 

Business is active. Payments are reported to be slow and delayed.

 

The company can be considered for business dealings on a safe and secured trade terms and conditions.

 

 

NOTES:

 

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

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INDIAN ECONOMIC OVERVIEW

 

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

Source : CIA

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

305, Rohit House, 3 Tolstoy Marg, New Delhi – 110001, India

Tel. No.:

91-124-4774444

Fax No.:

91-124-4774100

E-Mail :

rashmi.arora@lexisnexis.com

 

 

Head Office :

14th Floor, Building No. 10 B, DLF Cyber City, Phase II, Gurgaon-122002, Haryana, India

Tel. No.:

91-124-4774444

Fax No.:

91-124-4774201

E-Mail :

indiacontacts@elsevier.com

 

 

Sales Office:

Located At:

 

  • Chennai
  • Kolkata
  • Mumbai
  • Lahore 

 

 

DIRECTORS

 

As on 30.06.2012

 

Name :

Mr. Rohit Kumar

Designation :

Director

Address :

W-136, Greater Kailash 1, New Delhi-110048, India

Date of Birth/Age :

16.09.1967

Date of Appointment :

01.10.2009

Din No.:

01042569

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

U74899DL1991PTC046209

PULSTRONICS (INDIA) INSTRUMENTATION PRIVATE LIMITED

Director

12/05/1992

12/05/1992

-

Strike off

NO

2

U51109PB1999PLC034692

AUTHORGEN TECHNOLOGIES LIMITED

Director

15/06/2009

07/07/2008

08/12/2009

Active

NO

3

U80302DL2008PLC179177

Educomp-Raffles Higher Education Limited.

Additional director

04/08/2008

04/08/2008

04/09/2009

Active

NO

4

U72900DL1996PTC077903

REED ELSEVIER INDIA PRIVATE LIMITED

Director

01/10/2009

01/07/2009

-

Active

NO

5

U74899DL1984PTC019137

B I CHURCHILL LIVING STONE PRIVATE LIMITED

Director

13/08/2010

03/08/2009

-

Active

NO

6

U22110DL1997PTC089400

HARCOURT (INDIA) PRIVATE LIMITED

Director

13/08/2010

03/08/2009

-

Active

NO

 

 

Name :

Mr. Delphine Marie Therese Helene Lemaire

Designation :

Director

Address :

Flat No. 13, 5th Floor, New Pushpa Villas, CGHS Limited, 338 Chimbai, RPAD, Bandra, Mumbai-400050 (West), Maharashtra, India

Date of Birth/Age :

14.09.1967

Date of Appointment :

30.06.2010

Din No.:

02955796

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

U72900DL1996PTC077903

REED ELSEVIER INDIA PRIVATE LIMITED

Director

30/06/2010

22/03/2010

-

Active

NO

 

 

Name :

Mr. Feico De Zwaan

Designation :

Director

Address :

Old Door No. 117, 118, New Door No. 179, 181, St. Marys Road, Chennai-600018, Tamilnadu, India

Date of Birth/Age :

08.09.1972

Date of Appointment :

30.06.2010

Din No.:

03012742

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

U72900DL1996PTC077903

REED ELSEVIER INDIA PRIVATE LIMITED

Director

30/06/2010

22/03/2010

-

Active

NO

 

 

Name :

Mr. Arun Malhotra

Designation :

Additional Director

Address :

17/20 Old Rajendra Nagar, New Delhi – 110060, India

Date of Birth/Age :

11.10.1971

Date of Appointment :

30.06.2012

Din No.:

03084615

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

U22110DL2008PTC181081

REED ELSEVIER PUBLISHING (INDIA) PRIVATE LIMITED

Director

30/06/2010

25/05/2010

-

Active

NO

2

U72900DL1996PTC077903

REED ELSEVIER INDIA PRIVATE LIMITED

Director

30/06/2012

17/10/2011

-

Active

NO

 

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2012

 

Names of Shareholders

 

No. of Shares

Reed Elsevier Overseas BV, Netherlands

 

77281349

Reed Elsevier Holdings BV, Netherlands

 

3

 

 

 

Total

 

77281352

 

As on 30.06.2012

 

Category

 

Percentage

 

 

 

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

 

100.00

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing professional information and online workflow solutions in the Science, Medical, Legal, Risk Information and Analytics and Business sectors.

 

 

 

GENERAL INFORMATION

 

 

No. of Employees :

Not Available

 

 

Bankers :

Not Available

 

 

Facilities :

Rs. In Millions

Secured Loans

As on 31.12.2011

Rs. in millions

As on 31.12.2010

Rs. in millions

Rupee term loans others secured

0.000

2.251

 

 

 

Total

0.000

2.251

 

Unsecured Loans

As on 31.12.2011

Rs. in millions

As on 31.12.2010

Rs. in millions

Rupee term loans banks unsecured

0.000

1350.000

Working capital loans banks unsecured

1402.355

131.290

 

 

 

Total

1402.355

1481.290

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins & Sells

Chartered Accountant

Address :

7th Floor, Building No. 10-B, DLF Cyber City Complex, Phase II, Gurgaon-122002, Haryana, India

Tel. No.:

91-124-6792000

Fax No.:

91-124-6792012

 

 

Holding Company  :

Reed Elsevier Overseas B.V.

 

 

Ultimate Holding Company:

Reed Elsevier Plc

 

 

Fellow Subsidiaries:

·         Elsevier Inc

·         Elsevier Limited

·         Harcourt (India) Private Limited

      CIN No.: U22110DL1997PTC089400

·         Elsevier Singapore Pte Limited

·         Elsevier Publishing Japan KK

·         Reed Elsevier Technology Services

·         Reed International Books Australia Pty Limited

·         Elsevier B.V.

·         Reed Elsevier Netherland B.V

·         Reed Elsevier (Singapore) 2008 Pte Limited

·         Matthew Bender and Company Inc

·         Lexis Nexis Malayasia Sdn. Bhd

·         Lexis Nexis Japan KK

·         Lexis Nexis New Zealand Limited

·         Reed Esevier Information Technology (Beijing) Company Limited

·         Reed Elsevier Greater China Limited

·         Reed Elsevier Inc, DBA

·         Reed Elsevier (UK) Limited

·         Lexis Nexis Canada Inc

·         LexisNexis (Pty) Limited

·         B I Churchill Living Stone Private Limited

CIN No.:U74899DL1984PTC019137

·         Reed Exhibitions ISG SARL

·         Reed Exhibitions ISG GmBH

·         Reed Exhibitions ISG

·         Reed Exhibitions ISG, France

·         Reed Exhibitions ISG, Italy

·         Elsevier Finance S.A.

·         Reed Exhibitions ISG, UK

·         Reed Exhibitions ISG, USA

·         Reed Exhibitions Ltd

·         Reed Elsevier Australia Pty Limited

·         Reed Elsevier Publishing (India) Private Limited

     CIN No.:U22110DL2008PTC181081

·         Reed Tradex Co. Limited

·         Reed Midem SA

·         Reed Elsevier OOO (LLC)

·         Reed Exhibitions Brasil Ltda.

·         Reed FZ LLC (Abu Dhabi)

·         Reed Exhibitions Pty Limited

·         Reed Messe CEE Gmbh

·         Reed Exposition France SAS

·         Reed Elsevier Technology Services Inc

·         Elsevier Finance

·         LexisNexis Risk Solutions Inc

·         Reed Exhibitions Japan KK

·         Reed Business Information

·         Elsevier Korea LLC

·         Elsevier Taiwan LLC

·         Elsevier GmBH Deutschland

·         F.D.C Reports Inc

·         Lexis Nexis, USA

·         Lexis Nexis, Hong Kong

·         Lexis Nexis, UK

·         Elsevier Science Australia PTY Limited

·         Elsevier Ireland Limited

·         Reed Sinopharm Exhibitions Compnay Limited

·         Lexix Nexis Butterworths South Africa

·         Elsevier Canada

·         Lexis Nexis Australia

·         Elsevier STL

·         Lexis Nexis, Singapore

 

 

CAPITAL STRUCTURE

 

As on 31.12.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

77281352

Equity Shares

Rs.10/- each

Rs.772.814 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

77281352

Equity Shares

Rs.10/- each

Rs.772.814  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

772.814

522.643

335.547

2] Share Application Money

0.000

0.000

374.190

3] Reserves & Surplus

569.766

319.595

132.500

4] (Accumulated Losses)

(1672.220)

(1033.626)

(639.653)

NETWORTH

(329.640)

(191.388)

202.584

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

2.251

3.834

2] Unsecured Loans

1402.355

1481.290

1413.131

TOTAL BORROWING

1402.355

1483.541

1416.965

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

1072.715

1292.153

1619.549

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

582.013

1114.167

1264.168

Capital work-in-progress

172.175

0.754

57.088

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
231.333

232.405
194.322

 

Sundry Debtors
758.753

708.066
621.991

 

Cash & Bank Balances
11.868

28.427
43.932

 

Other Current Assets
154.502

0.000
0.000

 

Loans & Advances
234.030

185.636
208.988

Total Current Assets
1390.486

1154.534

1069.233

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
1021.144

920.928
720.450

 

Other Current Liabilities
22.160

32.267
27.953

 

Provisions
28.653

24.107
22.537

Total Current Liabilities
1071.959

977.302

770.94

Net Current Assets
318.527

177.232

298.293

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1072.715

1292.153

1619.549

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2011

31.12.2010

31.12.2009

 

 

SALES

 

 

 

 

 

Income

 

1711.074

1365.040

 

 

Other Income

 

6.402

13.219

 

 

TOTAL                                     (A)

NA

1717.476

1378.259

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of sales

 

497.865

373.207

 

 

Employees remuneration and benefits

 

533.333

449.378

 

 

Administrative and other expense

 

700.977

608.934

 

 

Impairment loss

 

0.000

86.744

 

 

Prior period adjustment

 

0.000

9.593

 

 

TOTAL                                     (B)

 

1732.175

1527.856

 

 

 

 

 

Less

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

NA

(14.699)

(149.597)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

148.370

190.776

 

 

 

 

 

 

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

 

(163.069)

(340.373)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

230.904

267.057

 

 

 

 

 

 

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

(638.593)

(393.973)

(607.430)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

3.208

 

 

 

 

 

 

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

(638.593)

(393.973)

(610.638)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(1033.626)

(639.653)

29.015

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(1672.219)

(1033.626)

(639.653)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

NA

70.174

28.741

 

TOTAL EARNINGS

 

70.174

28.741

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Books –Foreign

 

74.253

61.293

 

 

Capital assets

 

0.917

5.831

 

TOTAL IMPORTS

NA

75.170

67.124

 

 

 

 

 

 

Earnings Per Share (Rs.)

(8.26)

(8.18)

(18.94)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2011

31.12.2010

31.12.2009

 

PAT / Total Income

(%)

NA

(22.94)

(44.31)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

NA

(23.02)

(44.50)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(32.37)

(17.37)

(26.03)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(1.94)

(2.06)

(2.99)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

(7.51)

(12.86)

10.80

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.30

0.16

1.39

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Check List by Info Agents

Available in Report [Yes/No]

Year of Establishment

Yes

Locality of the Firm

Yes

Constitution of the firm

Yes

Premises details

No

Type of Business

Yes

Line of Business

Yes

Promoters background

Yes

No. of Employees

No

Name of Person Contacted

No

Designation of contact person

No

Turnover of firm for last two years

Yes

Profitability for last three years

Yes

Reasons for variation <> 20%

-

Estimation for coming financial year

-

Capital the business

Yes

Details of sister concerns

Yes

Major Suppliers

No

Major Customers

No

Payment Terms

No

Export / Import Details [If Applicable]

No

Market Information

-

Litigations that the firm / promoter involved in

-

Banking Details

No

Banking Facility Details

Yes

Conduct of the banking account

-

Buyer visit details

-

Financials, if provided

Yes

Incorporation details, if applicable

Yes

Last accounts filed at ROC

Yes

Major Shareholders, if applicable

Yes

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

Yes

PAN of Proprietor/Partner/Director, if available

No

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

No

External Agency Rating, if available

No

 

NOTE:

 

The Registerd office of the company has been shifted from 622, Indraprakash Building 21, Barakhamba Road New Delhi - 110001 Delhi INDIA  to the present address (W.e.f.22.08.2011)

 

FIXED ASSETS:

 

  • Leasehold Improvements
  • Plant and Machinery
  • Computer and Accessories
  • Furniture and Fixtures
  • Vehicles
  • Copyright, Trademark and Patents

 

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.55.52

UK Pound

1

Rs.88.85

Euro

1

Rs.70.85

 

 

INFORMATION DETAILS

 

 

Report Prepared by :

BYI

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

1

--LEVERAGE

1~10

1

--RESERVES

1~10

-

--CREDIT LINES

1~10

1

--MARGINS

-5~5

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

15

 

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.