MIRA INFORM REPORT

 

 

Report Date :

29.08.2013

 

IDENTIFICATION DETAILS

 

Name :

CARRIER MIDEA INDIA PRIVATE LIMITED (w.e.f. 14.02.2012)

 

 

Formerly Known As :

CARRIER REFRIGERATION AND AIR CONDITIONING VENTURES PRIVATE LIMITED

 

 

Registered Office :

First Floor, Plot No.51, Sector – 32, Gurgaon – 122001, Haryana

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

03.10.2011

 

 

Com. Reg. No.:

044006

 

 

Capital Investment / Paid-up Capital :

Rs.480.100 Millions

 

 

CIN No.:

[Company Identification No.]

U74140HR2011FTC044006

 

 

PAN No.:

[Permanent Account No.]

AAECC5616R

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading, Manufacturing and Distribution of all types of Air-Conditioning Equipments and Home Appliances.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (36)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 1900000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a Subsidiary of “Midea Electrics Netherlands B.V”.

 

It is a relatively new company having a moderate. In its first year of business operation the company has achieved size turnover.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealings with slight caution.

 

NOTES:

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

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

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.

 

 

LOCATIONS

 

Registered Office :

First Floor, Plot No.51, Sector – 32, Gurgaon – 122001, Haryana, India

Tel. No.:

91-124-2580051

Fax No.:

Not Available

E-Mail :

atul.sharma@carriermidea.com
zubin.irani@carrier.utc.com

catherine.yang@carrier.utc.com

william.striebe@utc.com

krishan.sachdev@carrier.utc.com

Website :

http://www.carriermidea.com

http://www.carriermideaindia.com

 

 

DIRECTORS

 

(AS ON 25.09.2012)

 

Name :

Mr. Zubin Jamshed Irani

Designation :

Director

Address :

11, Jor Bagh, New Delhi – 110003, India

Date of Birth/Age :

11.08.1972

Date of Appointment :

25.09.2012

DIN No.:

00159781

 

 

Name :

Mr. Krishan Sachdev

Designation :

Managing Director

Address :

D-6/11, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

13.03.1962

Date of Appointment :

03.10.2011

DIN No.:

03570017

PAN No.:

AAZP54235N

 

 

Name :

Ying Fang Catherine Yang

Designation :

Director

Address :

7/F, No.266 Hankou Road, Shanghai 20001 China

Date of Birth/Age :

19.03.1970

Date of Appointment :

25.09.2012

DIN No.:

05267978

 

 

Name :

William Francis Striebe Jr

Designation :

Director

Address :

7 Wentworth Park, Formington CT 06032-1559,  Formington CT 1559 United States of America

Date of Birth/Age :

08.12.1950

Date of Appointment :

25.09.2012

DIN No.:

05278104

 

 

Name :

Keyu Zhang

Designation :

Director

Address :

Room 2404, No. 317 North Yuexiu Road, Yuexiu District, Guangzhou City, Guang Dong Province 99999 China

Date of Birth/Age :

09.04.1977

Date of Appointment :

25.09.2012

DIN No.:

05302278

 

 

Name :

Jie Deng

Designation :

Director

Address :

402/5, Building 1, Haiqing Midea Costal Garden Beijiao Tower, Shunde District, Foshan City Guang Dong Province 999999 China

Date of Birth/Age :

21.06.1976

Date of Appointment :

25.09.2012

DIN No.:

05302293

 

 

Name :

Yanmin Gu

Designation :

Director

Address :

Room 206, Building 16 Xianghe Community 99999 China

Date of Birth/Age :

24.12.1963

Date of Appointment :

25.09.2012

DIN No.:

05302370

 

 

KEY EXECUTIVES

 

Name :

Mr. Atul Kumar

Designation :

Company Secretary

Address :

235-H, MIG DDA Flats, Rajouri Garden, New Delhi – 110027, India

Date of Birth/Age :

13.03.1969

Date of Appointment :

30.05.2012

PAN No.:

ABIPS8959B

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 25.09.2012)

 

Names of Shareholders

 

 

No. of Shares

 

 

 

Sensitech Emea B.V., Netherlands

 

24411928

Midea Electrics Netherlands

 

36617892

 

 

 

Total

 

 

61029820

 

 

(AS ON 30.10.2012)

 

Names of Allottees

 

 

No. of Shares Allotted

 

 

 

Sensitech Emea B.V., Netherlands

 

5207928

Midea Electrics Netherlands

 

7811892

 

 

 

Total

 

 

13019820

 

 

(AS ON 31.12.2012)

Equity Shares Break – up

 

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 :

Trading, Manufacturing and Distribution of all types of Air-Conditioning Equipments and Home Appliances.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Not Available

 

 

Facilities :

--

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Sanjeev K. Jain and Company

Chartered Accountants

Address :

F-29 Green Park, (Main) New Delhi – 110016, India

PAN No.:

AAFPJ4127L

 

 

Holding Company :

·         Midea Electrics Netherlands B.V., Netherlands

 

 

Ultimate Holding Company:

·         GD Midea Holding Company Limited, China

 

 

Associate Company :

·         Sensitech EMEA B.V., Netherlands

·         Carrier Air Conditioning and Refrigeration Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 25.09.2012)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

66000000

Equity Shares

Rs.10/- each

Rs.660.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

61029820

Equity Shares

Rs.10/- each

Rs.610.298 Millions

 

 

 

 

 

 

(AS ON 31.03.2012)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

51000000

Equity Shares

Rs.10/- each

Rs.510.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

48010000

Equity Shares

Rs.10/- each

Rs.480.100 Millions

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2012

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

 

480.100

(b) Reserves & Surplus

 

 

(3.620)

(c) Money received against share warrants

 

 

0.000

 

 

 

 

(2) Share Application money pending allotment

 

 

0.000

Total Shareholders’ Funds (1)+(2)

 

 

476.480

 

 

 

 

(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

 

 

8.089

Total Non-current Liabilities (3)

 

 

8.089

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

 

0.000

(b) Trade payables

 

 

1179.186

(c) Other current liabilities

 

 

42.343

(d) Short-term provisions

 

 

0.113

Total Current Liabilities (4)

 

 

1221.642

 

 

 

 

TOTAL

 

 

1706.211

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

 

0.151

(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)

 

 

1.762

(d)  Long-term Loan and Advances

 

 

0.000

(e) Other Non-current assets

 

 

1.160

Total Non-Current Assets

 

 

3.073

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

0.000

(b) Inventories

 

 

252.418

(c) Trade receivables

 

 

606.615

(d) Cash and cash equivalents

 

 

810.856

(e) Short-term loans and advances

 

 

32.980

(f) Other current assets

 

 

0.269

Total Current Assets

 

 

1703.138

 

 

 

 

TOTAL

 

 

1706.211

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

 

31.03.2012

 

SALES

 

 

 

 

 

Income

 

 

864.980

 

 

Other Income

 

 

3.240

 

 

TOTAL                                    

 

 

868.220

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

 

 

862.840

 

 

 

 

 

 

PROFIT BEFORE TAX

 

 

5.380

 

 

 

 

 

Less

TAX                                                                 

 

 

1.760

 

 

 

 

 

 

PROFIT AFTER TAX

 

 

3.620

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

0.08

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2012

PAT / Total Income

(%)

 

 

0.42

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

 

0.62

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

 

0.32

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

 

0.01

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

 

 

0.02

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

 

554.23

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last one years

Yes

12]

Profitability for last one 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

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

Yes 

33]

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

No

34]

External Agency Rating, if available

No

 

------------------------------------------------------------------------------------------------------------------------------

 

Profile

Client Industry

Electronics

Client's discipline

--

 

General

The growth of the client's industry is best described as:

Growing

Brief description of the services and/or goods the client provides to the marketplace:

Air-Conditioning and Home Appliances

What is the legal structure of the client?

Subsidiary of a parent company

What type of company is the client?

Private

 

Credit Rating

Client's debt tracked by a credit rating agency?

--

Name of credit rating agency:

--

Credit rating class provided by credit rating agency:

--

Client credit rating:

--

Report on credit worthiness of client purchased from:

Not obtained

 

Client Financials

Does the client have a credit facility?

Yes

Do you have financial information on this client?

Yes

Credit facility type:

Unknown

Amount of credit facility:

Nil

Currency of financial statements/data:

INR Millions

Annualized revenues:

Rs.864.980 Millions

Annualized COGS:

--

Annualized EBITDA:

--

Annualized net income:

Rs.3.620 Millions                                    

Cash balance:

Rs.0.320 Millions

Marketable Securities balance:

--

Accounts Receivable balance:

Rs.606.615 Millions

Current Assets balance:

Rs.1703.138 Millions

Total assets balance:

Rs.476.480 Millions

Current Liabilities balance:

Rs.1221.642 Millions

Long-Term Debt balance:

Nil

Equity balance:

Rs.476.480 Millions

Net cash provided by operating activities:

Rs.328.217 Millions

Date of client's financial data populated:

31.03.2012

Financial information provided above audited?

Yes

 

------------------------------------------------------------------------------------------------------------------------------

 

NOTE:

 

The Registered office of the company has been shifted from 3rd and 4th Floor, U and I Building, Plot No.83, City Centre, Sector 29, Gurgaon – 122001, Haryana, India, to the present address w.e.f. 30.05.2012.

 

 

FINANCIAL PERFORMANCE

 

The company for the period ended 31st March, 2012 achieved a turnover of Rs.868.220 Millions and incurred an operating loss of Rs.5.380 Millions.

 

 

MANAGEMENT REVIEW AND ANALYSIS

 

A. OPERATING ENVIRONMENT

 

In the fiscal year ended 31st March, 2012, the Indian economy, slowed down as compared to growth in previous fiscal year and inflation surged to 8.98%. This issue impacted the economy as a whole.

 

In addition to this, the Indian Rupee depreciated quite significantly compared to the US$. This coupled with inflation caused significant cost increases in products across the industry forcing all companies to pass on price increases to customers.

 

 

B. OPERATIONAL PERFORMANCE

 

The Company began its sales operations on 16th February buying Residential air-conditioning (RAC) products from Carrier Air-conditioning and Refrigeration Limited (CARL) and distributing the same in the market. The Company is in process of establishing its manufacturing facility at Bawal, Haryana. It is expected that manufacturing facility will be ready by October, 2012 and commercial production will commence in the same month after which it will manufacture and source its own products.

 

The cost pressures plaguing the industry were coupled by a change in Bureau of Energy Efficiency norms. This coupled with a delay in the onset of season caused a lot of head wind in sales in the one and a half months distribution operations the Company saw at the end of FY2012. On an overall basis, the total industry saw a slowdown in sales for a second summer season in a row and the effect of this was felt by the Company as Well

 

In spite of all these external factors, acceptability of the Carrier Brand higher end range, especially the 5 star category products continued to be strong. Product quality, brand image and a strong channel were key factors here. Mid segment products saw pressure due to pricing issues.

 

Regional Channel meets to communicate advent of the Carrier Midea joint venture evoked a positive response from the channel partners across the country. A wider range of Carrier Brand products in 2013, along with Midea Brand air-conditioners (augmented by home appliances) operating in the mid segment, will set the base for the Company to be a leading player in the RAC industry.

 

 

BACKGROUND

 

The company was incorporated under the Companies Act, 1956 on October 03, 2011 to carry on the business of trading, manufacturing and distribution of all types of air-conditioning equipments and home appliances. The Company started its operations on February 16, 2012 in order to give effect to the Joint Venture Agreement dated February 15, 2012 which was executed between Carrier Corporation, U.S.A. and G.D. Midea Holding Limited,  China. The Company is closely held by Midea Electrics Netherlands B.V., The Netherlands with 60% of equity shares and by Sensitech EMEA B.V., The Netherlands with 40% of equity shares.

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

 

NEWS:

 

CARRIER MIDEA TO INVEST RS.5000.000 MILLIONS IN NEW PLANT

 

New Delhi, Oct. 30:  

 

Consumer durables maker Carrier today said it will invest Rs.5000.000 Millions alongwith its joint venture partner Midea to expand its production capacity at its newly commissioned plant and rolling out products.

 

Both companies have formed a joint venture - Carrier Midea Private Limited - earlier this year to roll out products for residential segment. Carrier holds 40 per cent stake in the JV, while the rest lies with the Chinese partner.

 

“We will invest Rs.5000.000 Millions in the next 5-6 years in ramping up our manufacturing capacities and product development for the Indian market,” Krishan Sachdev, Managing Director, Carrier Midea Private Limited said here.

 

The company, which today announced commissioning its air conditioning plant at Bawal in Haryana, has installed capacity of seven lakh units annually, he added.

 

“Gradually, we will increase the output to 10 lakh units every year. At its peak capacity, the plant will employ over 1,000 people,” Sachdev said.

 

The company will launch home ACs, both in split and window categories, separately under Carrier and Midea brands.

 

“In future, we will introduce other Midea products also. Initially, we plan to import their products from China,” Sachdev said without sharing details.

With the start of production at the Bawal plant, Carrier’s entire residential portfolio in India has been shifted to the JV, he added.

 

Earlier, Gaurang Pandya, Managing Director, Carrier India had said the company is eyeing Rs.20000.000 Millions sales in the next 3-4 years from its joint venture with Midea.

 

 


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.68.36

UK Pound

1

Rs.106.02

Euro

1

Rs.91.47

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

36

 

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

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NB

                                       New Business

 

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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.