MIRA INFORM REPORT

 

 

 

 

Report Date :

11.02.2013

 

IDENTIFICATION DETAILS

 

Name :

AGNICE FIRE PROTECTION PRIVATE LIMITED (w.e.f. 01.06.2012)

 

 

Formerly Known As :

AGNICE FIRE PROTECTION LIMITED (w.e.f. 14.09.2000)

AGNI HEAVY ENGINEERING INDUSTRIES LIMITED

 

 

Registered Office :

No.2, G.K. Industrial Estate, Alapakkam, Porur, Chennai – 600 016, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

12.05.1995

 

 

Com. Reg. No.:

18-031367

 

 

Capital Investment / Paid-up Capital :

Rs.41.530 millions

 

 

CIN No.:

[Company Identification No.]

U28920TN1995PTC031367

 

 

PAN No.:

[Permanent Account No.]

AAACA9432F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Engineering, Procurement and Construction Contractor for Fire Fighting Systems.

 

 

No. of Employees :

Information declined by the Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (44)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 1280000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a satisfactory track record. There appears sharp fall in the profitability during the current year.

 

However, general financial position of the company appears to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment.

 

The company can be considered normal for business dealings at usual trade terms and condition.

 

Note:

United Technologies has acquired 69% of Agnice Fire Protection’s Shares.

 

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

 

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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating: BB+

Rating Explanation

Having moderate risk of default regarding timely servicing og financial obligation.

Date

October 26, 2009

 

 

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 DECLINED BY

 

Name :

Mr. Deepak

Designation :

Finance Manager

Contact No.:

91-22-42778410

Date :

06.02.2013

 

 

LOCATIONS

 

Registered Office/ Head Office/ Assembling Unit :

No.2, G.K. Industrial Estate, Alapakkam, Porur, Chennai – 600 016, Tamilnadu, India

Tel. No.:

91-44-42906900 (40 Lines)

Fax No.:

91-44-24769324

E-Mail :

srinivasan.m@fs.utc.com

support@agnice.net

info@agnice.net

marketing@agnice.net

Website :

http://www.agnicefireprotection.com

 

 

Branch Office 1 :

# C-301-303, 3rd Floor, Twin Arcade, Military Road, Marol, Andheri (East), Mumbai – 400 059, Maharashtra, India

Tel. No.:

91-22-40178500-14

Fax No.:

91-22-40178515

E-Mail :

mumbai@agnice.nt

 

 

Branch Office :

Also located at:

 

v      Delhi

v      Bangalore

v      Hyderabad

v      Cochin

v      Kolkata

 

 

Overseas Office :

Located at:

 

v      Muscat

v      Dubai

 

 

DIRECTORS

 

As on 23.08.2012

 

Name :

Zubin Jamshed Irani

Designation :

Director

Address :

11, Jor Bagh, New Delhi – 110 003, India

Date of Birth/Age :

11.08.1972

Date of Appointment :

02.12.2011

DIN No.:

00159781

 

 

Name :

Mr. Ramasami Govindarajan

Designation :

Managing director

Address :

No.20, Shanthi Street, Vetri Nagar Extension, Thiru Vi Ka Nagar, Chennai – 600 082, Tamilnadu, India

Date of Birth/Age :

04.06.1958

Qualification :

B.E.

Experience :

Having 25 years of experience in the manufacturing and contract industry

Date of Appointment :

19.01.2001

DIN No.:

00247519

PAN No.:

AAEPG0068Q

 

 

Name :

Mr. Ameer Ahmed

Designation :

Director

Address :

C/o. Agnice International and Partners LLC, PO Box 546, PC 117, Muscat, Sultanate of Oman

Date of Birth/Age :

22.09.1953

Date of Appointment :

15.02.2002

DIN No.:

00284273

PAN No.:

ABCPA4737H

 

 

Name :

Mr. Balasubramanian Nariampalli

Designation :

Director

Address :

21/2, Vaidya Raman Street, T. Nagar, Chennai – 600 017, Tamilnadu, India

Date of Birth/Age :

11.10.1931

Date of Appointment :

18.06.2012

DIN No.:

01013436

 

 

Name :

Mr. Manish Moreshwar Asarkar

Designation :

Director

Address :

A-103, Navbharar Co-Operative Housing Society, Plot No.8, Sector 2, New Panvel, Navi Mumbai – 410 206, Maharashtra, India

Date of Birth/Age :

07.06.1970

Date of Appointment :

02.12.2011

DIN No.:

02854527

 

 

Name :

Mr. Kenneth L. Erickson

Designation :

Director

Address :

507, Wexford CT, Noblesville IN 46062-9059, Noblesville, USA

Date of Birth/Age :

25.06.1957

Date of Appointment :

18.06.2012

DIN No.:

05268409

 

 

KEY EXECUTIVES

 

Name :

M. Srinivasan

Designation :

Company Secretary

Address :

864A, 64th Street, 10th Sector, K.K. Nagar, Chennai – 600 078, Tamilnadu, India

Date of Birth/Age :

12.11.1964

Date of Appointment :

15.12.2010

PAN No.:

AAZPS2315K

 

 

Name :

Mr. Deepak Gagare

Designation :

Finance Manager

 

 

Name :

Mr. Vivek

Designation :

Marketing Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 23.08.2012

 

Names of Shareholders

 

No. of Shares

 

UTC Fire and Security Singapore Pte Limited, Singapore

 

2865549

Zhenyu Zhang

 

1

Ameer Ahmed

 

540200

R. Govindarajan

 

279450

Ameer Ahmed and Anitha Ameer

 

255000

Anitha Ameer

 

194800

Aysha Thaha

 

8000

G. Jayalakshmi

 

10000

Total

 

4153000

 

As on 23.08.2012

 

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]

 

92.84

Directors or relatives of directors

 

7.16

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Engineering, Procurement and Construction Contractor for Fire Fighting Systems.

 

 

Products/ Services :

Item Code No. (ITC Code)

99545900

Product Description

Special Trade Contractors

 

 

GENERAL INFORMATION

 

Customers :

v      Chennai Petroleum Corporation Limited, Manali

v      Cochin Refineries Limited, Cochin

v      Hindustan Petroleum Corporation Limited, Vizag

v      Indian Oil Corporation Limited, Haldia

v      Indian Oil Corporation Limited, Guwahati

v      Indian Oil Corporation Limited, Barauni

v      Indian Oil Corporation Limited, Digboi

v      Indian Oil Corporation Limited, Trichirappalli

v      Indian Oil Corporation Limited, Madurai

v      Mitsubishi Heavy Industries Limited, Calcutta

v      Nagarjuna Fertilizers and Chemicals Limited, Kakinada

v      Petro Araldite Private Limited, Chennai

v      Reliance Industries Limited, Jamnagar

v      Tamilnadu Petroproducts Limited, Manali, Chennai

v      Thapar Dupont India Limited, Chennai

v      Andhra Pradesh Power Generation Corporation Limited, Bhoppalapalli

v      Arkay Energy Limited, Chennai

v      Aryan Coal Benefications Private Limited, New Delhi

v      Bihar Caustics and Chemicals Limited, Bihar

v      Binani Cement Limited, Rajasthan

v      Chemplast Sanmar, Karaikal

v      Avalon Technologies Private Limited, Chennai

v      Khivraj Tech Park Private Limited, Chennai

v      Lavina Estates Private Limited, Mumbai

v      Oberon Edifices and Estates Private Limited, Cochin

v      Shriram Properties And Infrastructure Private Limited, Chennai

v      Sri Sapthgiri Srinivasa Trust, Bangalore

v      Alstom Turbo Power Systems, France

v      Bharat Heavy Electricals Limited, Hyderabad

v      Bharat Heavy Electricals Limited, Hardwar

v      Doosan Heavy Industries and Construction, Korea

v      Fluor Amec LLC, Dubai

v      Indian Oil Tanking Limited, Mumbai

v      Larsen and Toubro Limited, Mumbai

v      Larsen and Toubro Limited, Oman

v      Janakiraman Mills Limited, Rajapalayam

v      Jay Textiles Limited (LMW Group), Coimbatore

v      Madanapalli Mills Limited, Madanapalli

v      Mecwel Constructions, Vijayawada

v      Premier Mills Limited, Udumalpet

v      Premier Polytronics Limited, Coimbatore

 

 

No. of Employees :

Information declined by the Management

 

 

Bankers :

v      State Bank of India (Commercial Branch), 65-A, G.S.T. Road, Guindy, Chennai – 600 032, Tamilnadu, India

v      IDBI Bank Limited, Plot No.7, Chevaliar Shivaji Ganesan Road, (South Board Road), T. Nagar, Chennai – 600 017, Tamilnadu, India

v      State Bank of India, Anna Salai Branch, 157, Anna Salai, Chennai – 600 002, Tamilnadu, India

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Rupee term loans from banks

(Secured by First Charge on the entire Current Assets such as Raw materials, Stock in Progress, Finished Goods etc.)

0.000

7.800

Rupee term loans from others

(Secured by Hypothecation of assets underlying the leases.)

1.228

0.249

SHORT TERM BORROWINGS

 

 

Rupee term loans from banks

(Secured by First Charge on the entire Current Assets such as Raw materials, Stock in progress, Finished goods, stores, Spares etc.)

398.452

389.648

Total

399.680

397.697

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Varma and Varma

Chartered Accountants

Address :

Sreela Terrace, Level-4, Unit-D, 105 First Main Road, Gandhi Nagar, Adyar, Chennai – 600 020, Tamilnadu, India

Income-tax PAN of auditor or auditor's firm :

AABFV9555E

 

 

Holding Company :

UTC Fire and Security Singapore Pte Limited, Singapore

 

 

Enterprises in which the Key management personnel and his relatives have substantial interest :

v      Code Red Electronics and Security Systems Private Limited

v      Connect Plus Private Limited

v      EPO Tech India Private Limited

 

 

Enterprises which are under common control :

v      UTC Fire and Security India Limited

v      Otis Elevators India Limited

v      Carrier Air-conditioning and Refrigeration Limited

 

 

CAPITAL STRUCTURE

 

As on 23.08.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

7000000

Equity Shares

Rs.10/- each

Rs.70.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4153000

Equity Shares

Rs.10/- each

Rs.41.530 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

41.530

41.530

38.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

278.499

264.404

167.037

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

320.029

305.934

205.037

LOAN FUNDS

 

 

 

1] Secured Loans

399.680

397.697

196.563

2] Unsecured Loans

232.258

20.000

10.000

TOTAL BORROWING

631.938

417.697

206.563

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

951.967

723.631

411.600

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

45.142

40.957

35.583

Capital work-in-progress

0.000

0.000

1.682

 

 

 

 

INVESTMENT

0.000

0.908

0.908

DEFERRED TAX ASSETS

16.694

3.345

2.882

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

57.142

59.229

71.747

 

Sundry Debtors

1138.740

871.765

621.917

 

Cash & Bank Balances

87.616

72.390

46.289

 

Other Current Assets

265.346

187.332

36.302

 

Loans & Advances

38.627

39.956

38.684

Total Current Assets

1587.471

1230.672

814.939

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

444.152

338.741

307.887

 

Other Current Liabilities

161.165

149.330

80.671

 

Provisions

92.023

64.180

55.836

Total Current Liabilities

697.340

552.251

444.394

Net Current Assets

890.131

678.421

370.545

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

951.967

723.631

411.600

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Operating revenue, net

1790.400

(Gross Turnover)

1451.177

1031.111

 

 

Other Income

NA

14.948

10.012

 

 

TOTAL                                     (A)

NA

1466.125

1041.123

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

NA

893.876

638.258

 

 

Contract cost

NA

236.267

188.168

 

 

Employee related expenses

NA

79.836

55.197

 

 

Administrative selling other expenses

NA

94.477

43.091

 

 

TOTAL                                     (B)

NA

1304.456

924.714

 

 

 

 

 

Less

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

NA

158.669

116.409

 

 

 

 

 

Less

INTEREST FINANCIAL EXPENSES                    (D)

NA

43.757

25.804

 

 

 

 

 

 

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

NA

114.912

90.605

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

NA

4.981

3.690

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

31.400

109.931

86.915

 

 

 

 

 

Less

TAX                                                                  (H)

17.305

40.584

32.251

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

14.095

69.347

54.664

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

202.357

133.010

86.750

 

 

 

 

 

Less

APPROPRIATIONS

NA

0.000

8.404

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

202.357

133.010

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.39

16.70

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

NA

4.73

5.25

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

NA

7.58

8.43

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.92

8.64

10.22

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.10

0.36

0.42

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.97

1.37

1.01

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.28

2.23

1.83

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Sundry Creditors

444.152

338.741

307.887

 

 

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

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%

--

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

Yes

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

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

Yes

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

No

34) External Agency Rating, if available

Yes

 

 


Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

Loans and advances from related parties

232.258

20.000

\Total

232.258

20.000

 

ACQUISITION OF MAJORITY STAKE BY UTC:

 

As the members are aware, UTC Fire and Security Singapore Pte Limited, a Singapore entity of UTC group entered into a Share Purchase Agreement on 29th July, 2011 with the existing promoters for acquiring 2865550 equity shares of Rs.10/- each in the company. This represents approximately 69% of the subscribed and voting capital of the Company. Pursuant to this Agreement and in compliance with the FDI guidelines, all the formalities relating to acquisition has been completed and management of the Company has been taken over by the new investors with effect from 2nd December, 2011.

 

CONVERSION INTO PRIVATE COMPANY:

 

As per the Special resolution passed in the Extraordinary General Meeting held on 15th March, 2012, the Company was converted into Private Limited Company with effect from 1st June, 2012 and the fresh Certificate of Incorporation has been obtained from the Registrar of Companies, Chennai.

 

FINANCIAL PERFORMANCE:

 

There was an increase of approximately 22% in the Gross Turnover from Rs.1466.700 millions last year to Rs.1790.400 millions in the current year. Profit before Tax has decreased to Rs.31.400 millions from Rs.109.900 millions in 2010-11. With the acquisition of majority stake by UTC, they hope that they will be able to achieve better results in the next financial year.

 

FIXED ASSETS:

 

v      Buildings

v      Plant and Equipment

v      Furniture and Fixtures

v      Vehicles

v      Office Equipment

v      Computer Equipments


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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.57

UK Pound

1

Rs.84.25

Euro

1

Rs.71.79 

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

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

4

--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

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

TOTAL

 

44

 

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.