MIRA INFORM REPORT

 

 

Report Date :

01.04.2013

 

IDENTIFICATION DETAILS

 

Name :

STANZEN TOYOTETSU INDIA PRIVATE LIMITED

 

 

Registered Office :

Plot No.20, Building No.2, Bidadi Industrial Area, District Ramanagara – 562 109, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

30.11.1998

 

 

Com. Reg. No.:

08-024464

 

 

Capital Investment / Paid-up Capital :

Rs.170.000 Millions

 

 

CIN No.:

[Company Identification No.]

U34300KA1998PTC024464

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRS04218E

 

 

PAN No.:

[Permanent Account No.]

AADCS5675B

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in the manufacture of automobile components.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1237000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between “Toyoda Iron Works Company Limited, Japan”, “Stanzen Techno Private Limited, Bangalore” and “Toyota Tsusho Corporation, Japan”. 

 

It is well established company having a satisfactory track record. There appears some loss recorded by the company during 2011-2012.

 

However, general financial seems to be good. The company gets strong support from its holding companies. There appears no external borrowing.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment.

 

In view of experience promoters, the company can be considered for normal business dealings at usual trade terms and condition.

 

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.20, Building No.2, Bidadi Industrial Area, District Ramanagara – 562 109, Karnataka, India

Tel. No.:

91-80-27287158/ 59/ 74/ 75

Fax No.:

91-80-27287153

E-Mail :

nataraj.k@stti.ttp.co.on

sttimarketing@stti.ttp.co.in

Website:

www.stanzentoyotetsu.com

 

 

DIRECTORS

 

As on 30.07.2012

 

Name :

Mr. Masaaki Kobayahi

Designation :

Managing Director

Address :

Flat No.12, Capricon, C.V. Raman Road, Sadashivanagar, Bangalore – 560 080, Karnataka, India

Date of Birth/Age :

25.04.1957

Date of Appointment :

12.08.2009

DIN No.:

02648896

 

 

Name :

Mr. Yoshimasa Sugimoto

Designation :

Whole Time  Director

Address :

No.B-907, Eight Floor, Birch Block, Prestige St, John’s Wood, No.18, 18/1, 2nd Cross, Chikka, Adugodi, Bangalore – 560 029, Karnataka, India

Date of Birth/Age :

15.05.1963

Date of Appointment :

16.07.2009

DIN No.:

02727011

 

 

Name :

Mr. Avinash Sosale

Designation :

Whole Time Director

Address :

No.94, Arvind, 11th Cross Margosa Road, Malleswaram, Bangalore – 560 003, Karnataka, India

Date of Birth/Age :

04.01.1981

Date of Appointment :

30.07.2010

DIN No.:

03191246

 

 

Name :

Shingo Shishikura

Designation :

Whole Time Director

Address :

G-906, Pegasus Wing, Brigade Gateway, 26/1, Dr. Rajkumar Road, Rajajinagar Extenstion, Malleswaram West, Bangalore – 560 055, Karnataka, India

Date of Birth/Age :

19.05.1959

Date of Appointment :

28.07.2011

DIN No.:

03581399

 

 

Name :

Kazuhiko Takarada

Designation :

Director appointed in casual vacancy

Address :

201-15, 4 Chjome, Miyukihnomachi, Toyota City, Aichi, Japan – 473-0901

Date of Birth/Age :

13.10.1951

Date of Appointment :

27.06.2011

DIN No.:

00104768

 

 

Name :

Jun Koizumi

Designation :

Director appointed in casual vacancy

Address :

Embassy Orchard, No.57/38763, Rajmahal Villas Extension, 1st Stage, No.702

Date of Birth/Age :

05.10.1966

Date of Appointment :

04.07.2011

DIN No.:

03577631

 

 

Name :

Mr. Ravi Sitaraman

Designation :

Whole Time Director

Address :

Flat No.102, Harinivas Apartment, Basavanagudi, Bangalore – 560 004, Karnataka, India

Date of Birth/Age :

26.06.1956

Date of Appointment :

01.08.2012

DIN No.:

05333528

PAN No.:

AAVPR7843R

 

 

Name :

Manabu Yamamoto

Designation :

Director appointed in casual vacancy

Address :

7-8-6 Miyoshigaoka, Miyoshi 4700202

Date of Birth/Age :

11.05.1962

Date of Appointment :

30.08.2012

DIN No.:

03578516

 

 

KEY EXECUTIVES

 

Name :

Mr. S.R. Ravi

Designation :

Company Secretary

Address :

Flat No.102, Harinivas Apartment, Basavanagudi, Bangalore – 560 004, Karnataka, India

Date of Birth/Age :

26.06.1956

Date of Appointment :

05.09.2006

PAN No.:

AAVPR7843R

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.07.2012

 

Names of Shareholders

 

 

No. of Shares

Toyoda Iron Works Company Limited, Japan

 

13175000

Toyota Tsusho Corporation, Japan

 

850000

Stanzen Techno Private Limited, India

 

2975000

Total

 

17000000

 

As on 30.07.2012

 

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]

 

82.50

Bodies corporate

 

17.50

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the manufacture of automobile components.

 

 

Products :

Item Code No. (ITC Code)

87089900

Product Description

Parts of Motor Vehicle

Item Code No. (ITC Code)

82073000

Product Description

Dies and Tools

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity

Actual Production

Parts and Accessories of Motor Vehicles

Nos.

15000000

14835718

Tools, Jigs, Dies and Fixtures

Nos.

500

139

 

Notes:

 

1.       The company is exempt from the licensing provision of the industries development and regulation act, 1951.

2.       As certified by the management and relied upon by auditors, this being a technical matter.

 

GENERAL INFORMATION

 

Bankers :

UFJ Bank Limited, New Delhi Branch, Upper Ground Floor, Mercantile House, 15, Kasturba Gandhi Marg, New Delhi – 110 001, India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse and Company

Chartered Accountants

Address :

5th Floor, Tower D, The Millenia, 1 and 2 Murphy Road, Ulsoor, Bangalore – 560 008, Karnataka, India

PAN No.:

AADFP9359C

 

 

Holding Company :

Toyoda Iron Works Company Limited, Japan

 

 

Fellow Subsidiaries :

Toyotetsu India Auto Parts Private Limited

 

 

Parties where KMP are able to exercise significant influence :

·         Stanzen Links

·         Stanzen Engineering Private Limited

 

 

CAPITAL STRUCTURE

 

As on 30.07.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

23000000

Equity Shares

Rs.10/- each

Rs.230.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

17000000

Equity Shares

Rs.10/- each

Rs.170.000 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

170.000

170.000

170.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

139.175

260.299

230.622

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

309.175

430.299

400.622

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

309.175

430.299

400.622

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

178.944

138.748

146.447

Capital work-in-progress

5.797

5.339

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

11.068

9.023

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

35.859
21.612
36.310

 

Sundry Debtors
175.465
138.316
85.028

 

Cash & Bank Balances
118.651
193.287
251.044

 

Other Current Assets
3.761
63.768
8.241

 

Loans & Advances
58.477
59.778
27.378

Total Current Assets
392.213
476.761
408.001

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
217.501
132.781
103.835

 

Other Current Liabilities
39.091
20.776
17.858

 

Provisions
11.187
48.060
41.156

Total Current Liabilities
267.779
201.617
162.849

Net Current Assets
124.434
275.144
245.152

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

309.175

430.299

400.622

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

1002.754

952.234

717.891

 

 

Other Income

 

 

 

 

 

TOTAL                        

1002.754

952.234

717.891

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Office Expenses

1068.796

810.393

593.644

 

 

Administrative Expenses

 

 

 

 

 

Advertising Expenses

 

 

 

 

 

Financial Expenses

 

 

 

 

 

TOTAL                        

1068.796

810.393

593.644

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

(66.042)

141.841

124.247

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

43.950

35.641

34.368

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

(109.992)

106.200

89.879

 

 

 

 

 

Less

TAX                                                     

11.132

37.007

31.403

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX

(121.124)

69.193

58.476

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

224.750

200.262

180.268

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

5.189

4.386

 

 

Proposed Dividend (including dividend tax)

0.000

39.516

34.096

 

BALANCE CARRIED TO THE B/S

103.626

224.750

200.262

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(7.12)

4.07

3.44

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

(12.08)
7.27

8.15

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(19.26)
17.25

16.21

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.36)
0.25

0.22

 

 

 
 

 

Debt Equity Ratio

(Total Debta/Networth)

 

0.00
0.00

0.00

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.46
2.36

2.51

 

 

 

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

No

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

Yes

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

No

34) External Agency Rating, if available

No

 

 


GENERAL INFORMATION:

 

Subject is joint venture between Toyoda Iron Works Company Limited, Japan, Stanzen Techno Private Limited and Toyota Tsusho Corporation, Japan. The Company is engaged in the manufacture of automobile components through pressing and welding and manufacture and trading of tools and dies for passenger cars. The Company has a manufacturing facility at Bidadi, Bangalore, India and predominantly sells its products in India.

 

REVIEW OF OPERATIONS:

 

During the year the Sale of Auto Components increased by 17% from Rs.818.000 millions in 2010-11 to Rs.953.000 millions in 2011-12. The tooling sales during the year were Rs.32.000 millions as compared to Rs.109.000 millions during the year 2010-11. The Company incurred loss of Rs. 109 million during the year against profit of Rs.106.000 millions during the year 2010-11

 

As members are aware, industrial relations suffered a setback during the later half of the year 2010-11 which had a severe impact on the operations of the Company during the year. To regain ‘Customer Trust’ and put the systems back in place, the Company has undertaken several measures to restore systems and profitability. As a part of labour risk management, the Company has also undertaken automation of certain critical processes. This added to the substantial cost pressure on the Company’s financials. Apart from this, in line with Company’s policy to meet the increased volume requirements by outsourcing and not by enhancing in- house capacity of stamping, the company started outsourcing of parts well in advance to meet the increased requirements from December 2011 as the remaining project life of the present model of vehicles for which the Company supplies parts is less than three years. This resulted in under-absorption of cost and the effect will be only for the year.

 

The Board has taken several cost reduction measures to restore profitability and expects substantial improvement in the financial condition during the succeeding financial years.

 

CUSTOMERS AND PARTS

 

TKML is increasing its production capacity and the company is already catering to the demand for parts for 270 vehicles a day as compared to about 210 vehicles a day during the year and preparations are in progress to meet the further demand of 314 vehicles a day from November 2012.

 

The Board of Directors are also happy to inform the members that for new (FMC-367A) project of TKML the company has been selected as a supplier for 44 parts and line off is in the month of April 2014. For FMC- 640A project of TKML (line off in April 2015), the company has already submitted quotation for supply of 478 parts.

 

CONTINGENT LIABILITIES

 

Particulars

31.03.2012

(Rs. In millions)

31.03.2011

(Rs. In millions)

Tax matters [Notes (a) and (b)]

3.824

0.792

Claims against company not acknowledged as debt

0.918

0.000

 

Notes:

(a) During the month of January 2008, the company availed VAT credit of Rs.0.507 million on foundation work for installation of its press machines, which was disallowed by the Commercial Tax Department as the same qualifies as restricted goods for availing the VAT credit. The department levied interest of Rs.0.234 million and penalty of Rs.0.051 million on account of excess credit availed. The Company has deposited an amount of Rs.0.396 million 'under protest' in this regard. The Joint Commissioner of Commercial Taxes (Appeals), Bangalore, dismissed the appeal filed by the Company on April 22, 2012 and the Company has filed an appeal with the Karnataka Appellate Tribunal, and a hearing is awaited.

(b) The Company had availed cenvat credit for input services relating to employee transportation amounting to Rs.2.329 millions and outdoor catering service amounting to Rs.0.703 million for the period January 2008 to November 2010. The Department of Central Excise and Customs issued Show cause notice on March 21, 2011 objecting to the availment of credit. The Additional Commissioner of Central Excise, Bangalore, vide his Order dated 19th September 2011 allowed the credit availed by the Company. However, department appealed against the said order of the Additional Commissioner of Central Excise, Bangalore, on January 10, 2012 and the Company has filed Memorandum of Cross Objections on March 9, 2012 in this regard.

 

FIXED ASSETS:

 

·         Leasehold Improvements

·         Plant and Machinery

·         Computer System

·         Office Equipment

·         Furniture and Fixtures

·         Motor Vehicles

·         Computer Software

 

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 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.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54 

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

45

 

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.