MIRA INFORM REPORT

 

 

Report Date :

11.12.2013

 

IDENTIFICATION DETAILS

 

Name :

LINCON POLYMERS PRIVATE LIMITED

 

 

Registered Office :

308, Shanti Mall, Near Satadhar Cross Road, Ghatlodia, Ahmedabad – 380061, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

04.03.1996

 

 

Com. Reg. No.:

04-028973

 

 

Capital Investment / Paid-up Capital :

Rs.8.075 Millions

 

 

CIN No.:

[Company Identification No.]

U17119GJ1996PTC028973

 

 

IEC No.:

0803008597

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHML00266A

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of PP/HDPE Woven Sacks and Bags.

 

 

No. of Employees :

250 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (42)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 510000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record.

 

The rating constrained on account of the company modest scale of operations in the competitive packaging industry and leveraged capital structure.

 

However, the rating reflects the vast experience of the promoters, established track record of operations, diversified product mix and fair profit margins.

 

Trade relations are fair. Business is active. Payment terms are slow but correct.

 

The company can be considered normal for business dealings at usual 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.

 

 

INDIAN ECONOMIC OVERVIEW

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

BB+ (Long Term Bank Facilities)

Rating Explanation

Moderate risk of default and high credit risk.

Date

March 19, 2013

 

Rating Agency Name

CARE

Rating

A4+ (Short Term Bank Facilities)

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

March 19, 2013

 

 

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 PARTED BY

 

Name :

Mr. Sunil Kothari

Designation :

Finance Manager

Contact No.:

91-9898136125

Date :

09.12.2013

 

 

LOCATIONS

 

Registered Office :

308, Shanti Mall, Near Satadhar Cross Road, Ghatlodia, Ahmedabad – 380061, Gujarat, India

Tel. No.:

91-79-27461493 / 27470603

Mobile No.:

91-9898136125 (Mr. Sunil Kothari)

Fax No.:

91-79-27470812

E-Mail :

paresh@linconpolymers.com

vksoni58@hotmail.com

office@linconpolymers.com

sales@linconpolymers.com   

purchase@linconpolymers.com

Website :

www.linconpolymers.com

Area :

2700 Sq. Ft

Location :

Owned

 

 

Factory  :

Block No. 38, Khatraj, Taluka- Kalol, District – Gandhinagar, Gujarat, India

Tel. No.:

91-2764-281274

Fax No.:

91-2764-281424

E-Mail :

deepak@linconpolymers.com

suresh@linconpolymers.com

Area :

9800 Sq. Ft

Location :

Owned

 

 

Branch Office :

701/6A, 7th Floor, Krishna Green Land Park, Kasarvadavali Junction, Ghod Bunder Road, Opposite Parshwanath Engineering College, Thane (West), Thane - 400604, Maharashtra, India

Tel. No.:

91-22-25970675

Fax No.:

91-22-25970579

E-Mail :

mathews@linconpolymers.com

 

 

DIRECTORS

 

As on: 24.09.2013

 

Name :

Mr. Babubhai Kachrabhai Patel

Designation :

Chairman

Address :

111, Vaibhav Bunglow, Near Sun-N-Step Club, Sola Road, Ghatlodia, Ahmedabad – 380061, Gujarat, India

Date of Birth/Age :

10.03.1953

Qualification :

Graduate

Date of Appointment :

25.08.1999

DIN No :

00229793

 

 

Name :

Mr. Pareshbhai Babubhai Patel

Designation :

Director

Address :

111, Vaibhav Bunglow, Near Sun-N-Step Club, Sola Road, Ghatlodia, Ahmedabad – 380061, Gujarat, India

Date of Birth/Age :

23.09.1976

Qualification :

Graduate

Date of Appointment :

25.08.1999

DIN No :

00229834

 

 

Name :

Mr. Bhaveshkumar Babubhai Patel

Designation :

Director

Address :

12/A, Malay Villa Bunglows, Opposite Silver Crust Bung, Sola Science City Road, Ahmedabad – 380060, Gujarat, India 

Date of Birth/Age :

23.02.1979

Date of Appointment :

24.09.2013

DIN No :

00229870

 

 

KEY EXECUTIVES

 

Name :

Mr. Sunil Kothari

Designation :

Finance Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 24.09.2013

 

Names of Shareholders

 

No. of Shares

Babubhai K. Patel

 

282750

Pareshbhai B. Patel

 

154150

Kamlaben B. Patel

 

50660

Lilaben P. Patel

 

300

Revaben L. Patel

 

867

Indumatiben l. Solanki

 

2500

Nikitaben Patel

 

6085

Anitaben P. Patel

 

30000

Bhaveshbhai B. Patel

 

15300

Laxmanbhai K. Patel

 

14418

Vikrambhai M. Shah

 

1500

Niravbhai P. Brahmbhatt

 

2100

Sureshbhai K. Patel

 

1600

Mafatlal L. Chaudhari

 

100

Kashiram B. Patel

 

100

S. M. Brothers (Proprietor Ranchodbhai Patel)

 

100

Visat Traders (Proprietor Pravinbhai D. Patel)

 

100

Krupa Trading (Proprietor Shri Bansibhai Patel)

 

100

Deepaliben Patel Jointly with Krupa Patel and Roopali Patel

 

100

Parasbhai Patel Jointly with Varshaben Patel

 

100

Adishbhai Patel

 

100

Industrial Marketing, India (Proprietor Ram Avtar Agrawal)

 

100

Divya Agrawal (H.U.F.)

 

100

We Exim, India (Proprietor Vijaybhai Patel)

 

50100

Hardikbhai D. Patel

 

42950

Samir G. Patel

 

47250

Shailesh R. Patel

 

21275

Pushpaben G. Patel

 

12500

Arvind B. Patel

 

42500

Dhanesh B. Patel

 

27500

Babubhai Mathuradas Patel

 

110

Reshma Tejas Patel

 

100

 

 

 

Total

 

807515

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 24.09.2013

 

Category

 

Percentage

Bodies corporate

 

3.72

Directors or relatives of directors

 

96.28

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of PP/HDPE Woven Sacks and Bags.

 

 

Products :

ITC CODE NO.

PRODUCT DESCRIPTION

39232100

PP / HDPE Woven Sacks and Bags

 

 

Exports :

 

Products :

PP/HDPE Woven Sacks

Countries :

·         Dubai

·         Africa

·         America

 

 

Imports :

 

Products :

Raw Material

Countries :

Korea

 

 

Terms :

 

Selling :

L/C, Cash and Credit (30 days/ 60 days)

 

 

Purchasing :

Cash and Document at site

 

 

PRODUCTION STATUS AS ON 31.03.2012

 

Particulars

Unit

Installed Capacity

HDPE / PP Woven Sacks Fabrics and Others*

MT

6000

 

*Installed capacity is as certified by the management

 

Particulars

Unit

Actual Production

Woven Sacks

Pcs.

49944922

Fabrics

Mt

1136

Other Items*

MT.

1272

 

*Includes production of intermediates products i.e. Tape (for sales)

 

 

GENERAL INFORMATION

 

Suppliers :

·         Reliance Industries Limited 

 

 

Customers :

Wholesalers, Retailers and Manufacturer

·         Asia Woven Sacks Private Limited

 

 

No. of Employees :

25 (Approximately)

 

 

Bankers :

Punjab National Bank, Sola Road Branch, Ghatlodia, Ahmedabad - 380061, Gujarat, India

 

 

Facilities :

Fund and Non Fund Rs.240.000 Millions (From Punjab National Bank)

 

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWINGS

 

 

Term Loans from Banks

33.325

45.667

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from banks

180.949

142.732

 

 

 

Total

214.274

188.399

 

Notes:

 

1. Details of security provided in respect of secured long-term borrowings

 

Ten loan from banks outstanding as at March 31, 2012 represents term loans availed by the Company from Punjab National Bank.

 

A!I the short term and long term credit facilities availed from the Punjab National Bank are secured by way of hypothecation of Plant and Machinery, Equipments and Other Fixed Assets of the Company, equitable mortage of factory land and building (situated at Block No. 38 and 39, Paiki Village, Khatraj, Kalol, Gandhinagar) and hypothecation of entire current assets (present and future) of the Company including raw material, work-in-progress, finished goods, receivables, stores, spares and consumables.

 

All the short term and long term credit facilities availed by the Company are backed by Personal Guarantee given by the Directors (Shri Babubhai K. Patel, Shri Pareshbhai 6. Patel), Smt. Anita P Patel and Corporate Guarantee of Malay Exports Private Limited.

 

Loans repayable on demand from banks include cash credit and buyer's credit facility availed by the Company from the Punjab National Bank.

 

All the short term and long term credit facilities availed from the Punjab National Bank are secured by way of hypothecation of Plant and Machinery, Equipment and Other Fixed Assets of the Company, equitable mortgage of factory land and building (situated at Block No. 38 S (39, Paiki Village, Khatraj, Kalol, Gandhinagar) and hypothecation of entire current assets (present and future) of the Company including raw material, work-in-progress, finished goods, receivables, stores, spares and consumables.

 

All the short term and long term credit facilities availed by :he Company are backed by Personal Guarantee given by the Glrectors (Shri Babubhsi K. Patel, Shri Pareshbhai B. Patel), Smt. Anita P. Patei and Corporate Guarantee of Malay Exports Private Limited.

 

There has been no defaults in repayment of any of the loans or interest thereon as at the end of the year.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

V K Soni and Company

Chartered Accountants

Address :

501/B, Parshwa Tower, Near Pakvan-II, S G Road, Bodakdev, Ahmedabad-380054, Gujarat, India

PAN.:

AADFV2811R

 

 

Company in which KMP/ Relatives of KMP can exercise significant influence :

·         Priyal Plast Private Limited

·         Malay Plast Private Limited

·         Acton Investment Limited

·         Divya Tradelink Private Limited

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1000000

Equity Shares

Rs.10/- each

Rs.10.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

807515

Equity Shares

Rs.10/- each

Rs.8.705 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

8.075

8.075

8.075

(b) Reserves & Surplus

121.741

107.561

95.211

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

129.816

115.636

103.286

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

66.720

75.083

89.316

(b) Deferred tax liabilities (Net)

20.585

19.653

13.597

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.101

Total Non-current Liabilities (3)

87.305

94.736

103.014

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

180.949

142.732

106.413

(b) Trade payables

11.364

37.440

24.010

(c) Other current liabilities

86.000

28.914

17.854

(d) Short-term provisions

2.390

0.947

1.365

Total Current Liabilities (4)

280.703

210.033

149.642

 

 

 

 

TOTAL

497.824

420.405

355.942

 

 

 

 

ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

152.927

134.909

144.987

(ii) Intangible Assets

0.843

0.908

1.102

(iii) Capital work-in-progress

0.202

17.065

11.082

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

8.103

3.217

3.731

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

162.075

156.099

160.902

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

55.590

84.887

55.892

(c) Trade receivables

161.921

116.448

114.114

(d) Cash and cash equivalents

15.923

12.996

7.657

(e) Short-term loans and advances

36.658

48.511

17.377

(f) Other current assets

65.657

1.464

0.000

Total Current Assets

335.749

264.306

195.040

 

 

 

 

TOTAL

497.824

420.405

355.942

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

896.823

737.309

647.969

 

 

Other Income

10.164

7.413

9.031

 

 

TOTAL                                     (A)

906.987

744.722

657.000

 

 

(Due to new Machines)

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

634.824

562.528

489.604

 

 

Purchases of Traded Goods

86.433

24.295

51.088

 

 

Changes in inventories of Finished Goods, Stock-in-Trade and Work-in-Progress

(9.098)

(8.631)

(7.694)

 

 

Employee Benefit Expenses

20.521

16.741

8.778

 

 

Other Expenses

104.844

84.359

59.923

 

 

Prior period Expenditure

0.000

0.000

0.934

 

 

Preliminary expenses Written off

0.000

0.000

0.010

 

 

TOTAL                                     (B)

837.524

679.292

602.643

 

 

 

 

 

Less

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

69.463

65.430

54.357

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

30.528

29.671

16.144

 

 

 

 

 

 

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

38.935

35.759

38.213

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

17.963

17.302

13.553

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

20.972

18.457

24.660

 

 

 

 

 

Less

TAX                                                                  (H)

6.792

9.800

13.718

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

14.180

8.657

10.942

 

 

 

 

 

Add:

Mat Tax Credit Entitlement

NA

3.693

4.915

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

68.785

56.435

40.578

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

68.785

56.435

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

55.870

20.753

20.753

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

394.982

259.093

47.523

 

 

Capital Goods

1.661

0.000

1.641

 

 

Spare and Parts

0.083

0.711

0.000

 

TOTAL IMPORTS

396.726

259.804

49.164

 

 

 

 

 

 

Earnings Per Share (Rs.)

17.56

15.29

19.64

 

 

Expected Sales (2013-2014): Rs.1100.000 Millions

 

The above information has been parted by Mr. Sunil Kothari

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

1.56
1.16
1.67

 

 

 
 
 

Net Profit Margin

(PBT/Sales)

(%)

2.34
2.50
3.81

 

 

 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)

4.21
4.58
7.15

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.16
0.16
0.24

 

 

 
 
 

Debt Equity Ratio

(Total Debt/Networth)

 

1.91
1.88
1.90

 

 

 
 
 

Current Ratio

(Current Asset/Current Liability)

 

1.27
1.26
1.30

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG TERM DEBT

(Rs. In Millions)

Particular

31.03.2013

31.03.2012

31.03.2011

Current maturities of long term debt

14.067

18.861

13.618

 

 

 

 

Total

14.067

18.861

13.618

 

 

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

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

Yes

14]

Estimation for coming financial year

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

NOTE:

 

The Registered address of the company has been shifted from F-2, Aakansha Appartments, Near Sola Railway Crossing, Ghatlodia, Ahmedabad – 380061, Gujarat, India to the present address w.e.f. 29.01.2007.

 

 

UNSECURED LOAN

(Rs. In Millions)

Particular

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWINGS

 

 

Loans and Advance from related parties

24.576

19.823

Loans and Advance from shareholder

8.819

9.593

 

 

 

Total

33.395

29.416

 

 

TRADE REFERENCE

 

·         Reliance Industries Limited 

·         Asia Woven Sacks Private Limited

 

 

FIXED ASSETS

 

Tangible Assets

·         Land and Site Development

·         Building

·         Office Building

·         Plant and Machinery

·         Electric Installation

·         Furniture and Fixture

·         Office Equipment

·         Motor Car

·         Air Conditioner

·         Computer

·         Scooter

·         Wind Mill

Intangible Assets

·         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.61.21

UK Pound

1

Rs.100.65

Euro

1

Rs.84.15

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

0

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

42

 

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.