MIRA INFORM REPORT

 

 

Report Date :

22.08.2013

 

IDENTIFICATION DETAILS

 

Name :

CLARIS OTSUKA LIMITED (w.e.f. 29.12.2012)

 

 

Formerly Known As :

CLARIS SPECIALITY INJECTABLES LIMITED

 

 

Registered Office :

5th Floor, Claris Corporate Headquarters, Near Parimal Crossing, Ellisbridge, Ahmedabad – 380006, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.11.2012

 

 

Com. Reg. No.:

04-072692

 

 

Capital Investment / Paid-up Capital :

Rs.0.500 Million

 

 

CIN No.:

[Company Identification No.]

U24230GJ2012PLC072692

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacture and Marketing of Drug and Pharmaceutical Products.

 

 

No. of Employees :

Information denied by the management 

 


 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

-

NB

                                       New Business

-

 

Maximum Credit Limit :

USD 1700

 

 

Status :

New Business

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a newly formed joint venture between “Claris Lifescience Limited, India” and “Otsuka Pharmaceutical Factory, Inc, Japan” and “Mitsui and Company Limited, Japan”. The Company Formed by Joint Venture was Incorporated during November 12th, 2012 and is establishing itself gradually.

 

The company has not yet commenced its business activity and has incurred a minimal loss during the period ranging from November 13th, 2012 to December 31st 2012 due to pre operative expenses. There appear no external borrowings recorded in the books during 2012.

 

Management has denied to disclose any further information regarding.

 

However, business is active. Payment terms are unknown.

 

In view of strong and reputed holding companies, the subject can be considered for business dealings with some caution.

 

 

 

NOTES :

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

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

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

 

 

INFORMATION DENIED

 

MANAGEMENT NON CORPORATIVE (91-79-26563331)

 

 

LOCATIONS

 

Registered Office :

5th Floor, Claris Corporate Headquarters, Near Parimal Crossing, Ellisbridge, Ahmedabad – 380006, Gujarat, India

Tel. No.:

91-79-26563331/ 66309339

Fax No.:

91-79-26408053

E-Mail :

Secretarial.crop@clarislifesciences.com

Website :

www.clarisotsuka.com

 

 

Factory :

Located At :

  • Ahmedabad

 

 

DIRECTORS

 

As on: 11.07.2013

 

Name :

Mr. Arjun Sushilkumar Handa

Designation :

Director

Address :

Sharanya Judges Bunglows Road, Vastrapur, Bodakdev, Ahmedabad – 380054, Gujarat, India

Date of Birth/Age :

30.09.1979

Date of Appointment :

12.11.2012

DIN No. :

00159413

 

 

Name :

Mr. Amish Pravinchandra Vyas

Designation :

Director

Address :

89-400, Saraswati Nagar, Near Azad Society, Ambawadi, Ahemadabad – 380015, Gujarat, India

Date of Birth/Age :

17.09.1970

Date of Appointment :

12.11.2012

DIN No. :

00168292

 

 

Name :

Mr. Chandrasingh Shivrambhai Purohit

Designation :

Director

Address :

17, Rajvi Emeralds, Near Gala Gymkhana, Bopal, Ahmedabad – 380054, Gujarast, India

Date of Birth/Age :

15.09.1973

Date of Appointment :

12.11.2012

DIN No. :

00199651

 

 

Name :

Mr. Ichiro Otsuka

Designation :

Additional Director

Address :

3-50, Shinkura-CHO, Tokushima-SHI, Tokushima – 7700855

Date of Birth/Age :

15.02.1965

Date of Appointment :

31.07.2013

DIN No. :

06639158

 

 

Name :

Shinichi Ogasawara

Designation :

Additional Director

Address :

3-27-1, Kitamaegawa-CHO, Tokushima-City, Tokushima

Date of Birth/Age :

29.01.1953

Date of Appointment :

31.07.2013

DIN No. :

06633597

 

 

Name :

Kenji Itoh

Designation :

Additional Director

Address :

2-2-14 Fukuecho Sakaide – City, Kagawa Pref

Date of Birth/Age :

15.07.1955

Date of Appointment :

31.07.2013

DIN No. :

06639026

 

 

Name :

Hiromi Yoshikawa

Designation :

Additional Director

Address :

1-8-37, Niikura, Wako-SHI, Saitama - 3510115

Date of Birth/Age :

13.05.1953

Date of Appointment :

31.07.2013

DIN No. :

06639148

 

 

Name :

Kimihide Kondo

Designation :

Additional Director

Address :

Tahnea Heights, 301, Nepean Sea Road, Mumbai – 4000006, Maharashtra, India

Date of Birth/Age :

14.05.1966

Date of Appointment :

31.07.2013

DIN No. :

01945259

 

 

Name :

Bharat Vinodchandra Shah

Designation :

Additional Director

Address :

105, Surya Mandir, Judges Bunglow Road, Bodakdeev, Ahmedabad – 380053, Gujarat, India

Date of Birth/Age :

11.06.1971

Date of Appointment :

31.07.2013

DIN No. :

00995574

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 11.07.2013

 

Names of Shareholders

No. of Shares

Claris Lifesciences Limited

49940

Arjun Handa

10

Amish Vyas

10

Chandrasingh i Purohit

10

Chetan S. Majmudar

10

Bharat Shah

10

Roopesh Madan

10

 

 

Total

50000

 

As on: 31.07.2013

 

Names of Shareholders

No. of Shares

Otsuks Pharmaceutical Factory, Inc, Japan

5999998

Mr. Ichiro Otsuka

1

Mr. Hiromi Yoshikawa

1

Total

6000000

 

As on: 31.07.2013

 

Names of Shareholders

No. of Shares

Mitsui and Company Limited

1999999

Mitsui and Company India Private Limited

1

Total

2000000

 


As on: 11.07.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Bodies corporate

99.88

Directors or relatives of Directors

0.06

Other top fifty shareholders

0.06

Total

100.00

 

BUSINESS DETAILS

 

Line of Business :

Manufacture and Marketing of Drug and Pharmaceutical Products.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information denied by the management 

 

 

Bankers :

Not Available

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Shah Gaurav Jaswantlal

Chartered Accountant

Address :

Heritage, 3rd Floor, Near Gujarat, Vidhyapith, Off Ashram Road, Ahmedabad – 380014, Gujarat, India

PAN No. :

AABFD7919A

 

 

Holding Company :

Claris Lifesciences Limited

CIN No.: L85110GJ1994PLC022543

 

 

Fellow Subsidiary :

Ř  Claris Lifesciences Venezuela C.A.

Ř  Claris Produtos Farmaceuticos Do Brasil Ltda.

Ř  Pt. Claris Lifesciences Indonesia

Ř  Claris Lifesciences Colombia Ltda

Ř  Catalys Venture Cap Limited

Ř  Claris Lifesciences International Limited

Ř  Claris Lifesciences Philippines Inc

Ř  Claris Lifesciences De Mexico SA de CV

Ř  Claris Lifesciences (UK) Limited

Ř  Claris Lifesciences Inc.

Ř  Claris Lifesciences and CIA Chile Limitada

Ř  OGEN Nutrition Limited

Ř  Claris Lifesciences (Aust) Pty Limited

Ř  Claris Infrastructure Limited

Ř  Claris Pharmaservices

Ř  Icubix Infotech Limited

 


 

CAPITAL STRUCTURE

 

After: 11.07.2013

 

Authorised Capital : Rs.100.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.100.000 Millions

 

 

As on: 31.12.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10000000

Equity Shares

Rs.10/- each

Rs.100.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000

Equity Shares

Rs.10/- each

Rs.0.500 Million

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

12.11.2012 to

31.12.2012

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

 

0.500

(b) Reserves & Surplus

 

 

(0.056)

(c) Money received against share warrants

 

 

0.000

 

 

 

 

(2) Share Application money pending allotment

 

 

0.000

Total Shareholders’ Funds (1) + (2)

 

 

0.444

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

 

0.000

(b) Deferred tax liabilities (Net)

 

 

0.000

(c) Other long term liabilities

 

 

0.000

(d) long-term provisions

 

 

0.000

Total Non-current Liabilities (3)

 

 

0.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

 

0.000

(b) Trade payables

 

 

0.000

(c) Other current liabilities

 

 

0.056

(d) Short-term provisions

 

 

0.000

Total Current Liabilities (4)

 

 

0.056

 

 

 

 

TOTAL

 

 

0.500

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

 

0.000

(ii) Intangible Assets

 

 

0.000

(iii) Capital work-in-progress

 

 

0.000

(iv) Intangible assets under development

 

 

0.000

(b) Non-current Investments

 

 

0.000

(c) Deferred tax assets (net)

 

 

0.000

(d)  Long-term Loan and Advances

 

 

0.000

(e) Other Non-current assets

 

 

0.000

Total Non-Current Assets

 

 

0.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

0.000

(b) Inventories

 

 

0.000

(c) Trade receivables

 

 

0.000

(d) Cash and cash equivalents

 

 

0.500

(e) Short-term loans and advances

 

 

0.000

(f) Other current assets

 

 

0.000

Total Current Assets

 

 

0.500

 

 

 

 

TOTAL

 

 

0.500

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

12.11.2012 to

31.12.2012

 

SALES

 

 

 

 

 

Income

 

 

0.000

 

 

Other Income

 

 

0.000

 

 

TOTAL                                    

 

 

0.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Other Expenses

 

 

0.056

 

 

TOTAL                                    

 

 

0.056

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

 

(0.056)

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

 

 

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

 

 

(0.056)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

 

 

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX

 

 

(0.056)

 

 

 

 

 

Less

TAX                                                                 

 

 

0.000

 

 

 

 

 

 

PROFIT AFTER TAX                

 

 

(0.056)

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

(1.12)

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

12.11.2012 to

31.12.2012

PAT / Total Income

(%)

 

 

0.00

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

 

0.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets)

(%)

 

 

(11.20)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

 

(0.13)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

 

 

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

 

8.93

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE:

Current maturities of long term debt is not available

 

 

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 one month

Yes

12]

Profitability for last one month

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

No

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

No

33]

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

No

34]

External Agency Rating, if available

No

 

 

Purchase of Infusions Business From Claris Lifescience Limited And Investment By Otsuka Pharmaceautical factory, Inc. And Mitsui And Company Limited:

 

The company entered into various agreements, including a Business Transfer Agreement dated December 7, 2012, Share Subscription Agreement dated December 7, 2012 (the share subscription agreement), entered into between the company, Claris Lifesciences Limited (Claris), Otsuka Pharmaceautical factory, Inc. (Otsuka) and Mitsui And Company Limited (Mitsui), in accordance with the terms of which the company will acquire the infusions business of Claris on a slump sale basis for India and Certain overseas markets, and it will also receive investments from Claris, Otsuka ans Mitsui towards fresh equity shares to be issued by the Company

 

 

PRESS RELEASE:

 

 

CLARIS LIFESCIENCES LIMITED, COMPLETES THE TRANSFER OF ITS INFUSION BUSINESS IN INDIA AND EMERGING MARKETS; TO THE JOINT VENTURE WITH OTSUKA PHARMACEUTICAL FACTORY, INC. AND MITSUI AND COMPANY LIMITED

JULY 31ST 2013

 

Ahmedabad, India Claris Lifesciences Limited, India (Claris) announced today, that it has completed the transfer of its Infusion business for India and Emerging Markets to the Joint Venture (Claris-Otsuka) with Otsuka Pharmaceutical Factory, Inc., Japan (OPF) and Mitsui and Company Limited Japan (Mitsui).

 

The Infusion business includes Common Solutions, Anti-Infective, Plasma Volume Expanders and Parenteral Nutrition therapies for India and Emerging Markets. Claris has transferred two of its existing plants to the Joint Venture. Claris will continue to hold a 20% stake in the Joint Venture while Otsuka and Mitsui will hold 60% and 20% respectively Claris has received a total cash consideration of Rs. 10500.000 millions as a part of the transaction from Claris-Otsuka. Claris-Otsuka is valued at Rs. 13130.000 millions

 


 

Fund Utilisation Plans

 

1.     The company has used the part of the cash consideration towards debt prepayment of around Rs. 3600.000 millions

 

2.     Subject to regulatory approvals; the Company intends to reward shareholders via buyback of shares. The Company has allocated Rs. 3000.000 millions for the buyback of shares.

 

3.     The remaining funds net of taxes and deal related expenses will be used to fund the future growth of the company

 

Claris Growth Plans

 

Claris recently resumed its supply to the United States and is one of the few injectables companies in India to have its own front end in the US, where the Company markets its products through its wholly owned subsidiary Claris Lifesciences Inc. The Company now has 11 ANDAs approved in its name across 7 molecules with a total filing of 31 ANDAs across 22 molecules and a pipeline of 20 ANDA to be filed The funds albcated for future growth will be invested keeping in mind the following business decisions:

 

  1. Claris to remain focused on its specialty generic injectables business.

 

b.    Company shall intensify its growth in all international markets, especially the regulated markets (including the US) through new product launches.

 

c.     Company to continue to increase its focus on bag products and other niche 'difficult to manufacture' products.

 

  1. Company to work on fast track growth opportunities via organic (capacity expansion and introduction of new delivery systems) and inorganic (acquire products and ANDAs) routes.

 

About Claris Lifesciences Limited

 

Claris Lifesciences Limited (BSE Code: 533288) is one of the largest sterile injectables pharmaceutical companies in India. The company manufactures and markets products across various therapeutic segments including Anesthesia, Plasma Volume Expanders, Blood Products, Parenteral and Enteral Nutrition, Infusion therapy, Anti-infective and Renal Care. A significant majority of these products are generic drugs that are capable of being directly injected into the human body and are predominantly used in the treatment of critical illnesses.

 

The company has 3 manufacturing plants; at its campus on the out skirts of Ahmedabad. With emphasis on Quality, Technology and Innovation, Claris offers a range of niche technology-driven injectable products across delivery systems such as glass bottles, glass vials and ampoules, and non-PVC/PVC bags. Claris' sterile injectables facilities have been approved by regulatory authorities including USFDA, MHRA (UK), TGA (Australia), and GCC FDCA. The company's manufacturing capabilities have several times received awards from prestigious institutions like Frost & Sullivan and

IDMA

 

About Otsuka Pharmaceutical Factory

 

Otsuka Pharmaceutical Factory, Inc. (OPF), based in Japan, is a pharmaceutical company that specializes in the manufacturing and marketing of intravenous solutions and clinical nutrition products. Established inl921, OPF is the originating company of the Otsuka Group, a diversified healthcare group of companies, with 1.2 billion USD annual sales and business extending over 80 subsidiaries in over 20 countries.

 

Since its inception, OPF has made significant contribution to the advancement of intravenous solution therapy, such as development of new parenteral nutrition products, including the development of innovative containers and packaging systems. As the market leader and front runner in the field of intravenous clinical nutrition, OPF is committed to being the best partner of patients and healthcare professionals around the world. OPF is headquartered in Naruto-shi, Tokushima, Japan and has over 2500 employees nationwide.

 

About Mitsui and Company Limited

 

Mitsui and Company Limited ("Mitsui") is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 152 offices in 67 counties as of November, 2012. Utilizing the global operating locations, network and information resources, Mitsui is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fieids, Iron and Steel Products, Mineral and Metal Resources, Infrastructure Projects, Motor Vehicles, Marine and Aerospace, Chemicals, Energy, Food Resources, Food Products and Services, Consumer Services, IT, Financial and New Business and Transportation Logistics. Mitsui is actively taking on challenges for global business innovation around the world.


 

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.65.42

UK Pound

1

Rs.102.09

Euro

1

Rs.87.32

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

ANK

 


 

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

 

 

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.