MIRA INFORM REPORT

 

 

Report Date :

18.02.2013

 

IDENTIFICATION DETAILS

 

Name :

APPLICOMP (INDIA) LIMITED

 

 

Registered Office :

Gangapur Gin Compound Station Road, Ahmednagar – 414001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.07.2011

 

 

Date of Incorporation :

31.12.1996

 

 

Com. Reg. No.:

25-104800

 

 

Capital Investment / Paid-up Capital :

Rs. 1382.928 Millions

 

 

CIN No.:

[Company Identification No.]

u29302PN1996pLc104800

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

muma14916G

 

 

PAN No.:

[Permanent Account No.]

AACCA9547R

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Trader of Refrigerator, Washing Machine and Television.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 8180000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. The liquidity of the company appears to be insufficient.

 

Even though, the company has achieved an increase in its sales during 2011, the profitability appears to be low.

 

However, trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company 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.

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Short term loan : A3

Rating Explanation

Moderate degree of safety and higher credit risk.

Date

October 2011

 

 

Rating Agency Name

CARE

Rating

Long term loan : BBB

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

October 2011

 

 

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 :

Gangapur Gin Compound Station Road, Ahmednagar – 414001, Maharashtra, India

Tel. No.:

91-241-2358427 / 2355121

Fax No.:

91-241-2824775

E-Mail :

secretarial1@gmail.com

info@applicomp.in

 

 

Factory :

Survey No 6-11, Krishnasagara Village, Anekal Taluk, Attibele, Hosur Road, Bangalore – 562107, Karnataka, India

Tel. No.:

91-80-27821845 / 27820890 / 27820891 / 27820892

Fax No.:

91-80-27821154

 

 

DIRECTORS

 

AS ON 30.01.2012

 

Name :

Mr. Sharadkumar Bansilal Pallod

Designation :

Director

Address :

Ashish Bunglow, Station Road, Gangapur Gin Compound, Ahmednagar – 414001, Maharashtra, India 

Date of Birth/Age :

23.10.1944

Qualification :

Law Graduate

Date of Appointment :

31.12.1996

DIN No.:

01799051

 

 

Name :

Ms. Sheetal Kumar Dak

Designation :

Director

Address :

3 Vinayak Apartment, New Osmanpura, Near Sant Eknath Rang Mandir, Aurangabad – 431005, Maharashtra, India

Date of Birth/Age :

18.10.1962

Date of Appointment :

30.01.2012

DIN No.:

00017579

 

 

Name :

Mr. Yatinder Vir Singh

Designation :

Additional Director

Address :

2104/B-II, Vasant Kunj, New Delhi – 110070, India 

Date of Birth/Age :

16.08.1962

Qualification :

Graduate

Date of Appointment :

30.01.2012

DIN No.:

02223708

 

 

KEY EXECUTIVES

 

Name :

Ms. Sonal Bhandari

Designation :

Secretary

Address :

C-7, Rajhans Residency, D.P. Road, Aundh, Pune-411052, Maharashtra, India

Date of Birth/Age :

16.02.1986

Date of Appointment :

01.08.2009

PAN No.:

ANIPB4203H

 

 

Name :

Mr. Sasidhar Babu J.

Designation :

General Manager (w.e.f. May 2011)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.01.2012

 

Names of Shareholders

No. of Shares

Percentage of Shares

Videocon Industries Limited, India 

17023500

12.31

Value Industries Limited, India 

9712000

7.02

Kail Limited, India

1683000

1.22

Dome-Bell Electronics India Private Limited, India 

18258000

13.20

Indian Refrigerator Company Limited, India

1683000

1.22

Tekcare India Private Limited, India

10098000

7.30

Shree Dhoot Trading and Agencies Limited, India 

20098000

14.53

Partecipazioni Italiane SPA, Italy 

59737337

43.20

Total

138292837

100.00

 

 

AS ON 30.01.2012

 

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]

 

43.20

Bodies corporate

 

56.80

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Refrigerator, Washing Machine and Television.

 

 

Products :

ITC Code

Product Descriptions

8528.72

Colour Television

8418.21

Refrigerator

8450.00

Washing Machine

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Ø       Andhra Bank, 16th Floor, Earnest House, NCPA Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

Ø       Vijaya bank, Industrial Finance Branch, 2nd Floor, New Excelsior Building, Wallace Street, Fort, Mumbai – 400001, Maharashtra, India

Ø       UCO Bank, Flagship Corporate Branch, 1st Floor, Mafatlal Centre, Nariman Point, Mumbai – 400021, Maharashtra, India

Ø       United Bank of India, Corporate Finance Branch, United Bank of India Building, 2nd Floor, 25 Sir P. M. Road, Fort, Mumbai – 400001, Maharashtra, India

Ø       Central Bank of India, Industrial Finance Branch, Chandermukhi, Ground Floor, Nariman Point, Mumbai – 400021, Maharashtra, India

 

 

Facilities :

Secured Loans

31.07.2011

31.07.2010

 

 

(Rs. In Millions)

Rupee term loans banks secured

4795.170

999.957

Foreign currency loans banks secured

2308.234

2218.719

Working capital loans banks secured

896.423

73.683

Total

7999.827

3292.359

Note:

 

i) Rupee Term Loan from Bank of Rs. 1765.950 Million is secured by a first charge on moveable and immovable fixed assets of the Company (except those specifically charged for foreign currency loans) both present and future and personal guarantees of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot. Rupee Term Loan from Bank of Rs. 3029.220 Million is secured by a residual charge over the current assets and moveable fixed assets of the Company by way of hypothecation. The loan is further secured by corporate guarantee of Videocon Industries Limited and personal guarantees of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.

 

ii) Foreign Currency Loan from Bank is secured by a first charge by way of hypothecation of the equipment and machinery including the spares relating there to, purchased from Necchi Compressori S.P.A. and installed in the factory located at Plot No 6-11, Krishna Sagar Attibele, Annekal Taluka, Hosur Road, Bangalore.

 

iii) Working Capital Loan from Banks are secured by hypothecation of the Company's stock of raw materials, packing materials, stock-in-process, finished goods, stores and spares, book debts and all other current assets of the Company.

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kadam and Company

Chartered Accountants

Address :

"Vedant", 8/9 Viraj Estate, Opposite Tarakpur Bus Stand, Ahmednagar – 414003, Maharashtra, India

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

AAIFK3708R

 

 

CAPITAL STRUCTURE

 

AS ON 31.07.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

150,000,000

Equity Shares

Rs. 10/- each

Rs. 1500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

138,292,837

Equity Shares

Rs.10/- each

Rs. 1382.928 Millions

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.07.2011

31.07.2010

31.07.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1382.928

1382.928

1382.928

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

662.360

648.173

579.057

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2045.288

2031.101

1961.985

LOAN FUNDS

 

 

 

1] Secured Loans

7999.827

3292.359

4354.313

2] Unsecured Loans

1000.000

2499.981

1000.000

TOTAL BORROWING

8999.827

5792.340

5354.313

DEFERRED TAX LIABILITIES

113.593

109.968

69.016

 

 

 

 

TOTAL

11158.708

7933.409

7385.314

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

6311.018

5429.626

4673.611

Capital work-in-progress

1055.711

0.000

0.000

 

 

 

 

INVESTMENT

577.150

567.983

487.330

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

2326.692
2215.011
2100.234

 

Sundry Debtors

1991.448
1800.031
1679.177

 

Cash & Bank Balances

74.407
74.761
78.269

 

Other Current Assets

6.115
3.475
2.058

 

Loans & Advances

779.300
109.134
154.744

Total Current Assets

5177.962
4202.412
4014.482

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

1530.762
1949.445
1711.275

 

Other Current Liabilities

403.404
283.497
53.824

 

Provisions

28.967
33.670
25.010

Total Current Liabilities

1963.133
2266.612
1790.109

Net Current Assets

3214.829
1935.800
2224.373

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

11158.708

7933.409

7385.314

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.07.2011

31.07.2010

31.07.2009

 

SALES

 

 

 

 

 

Income

9571.377

8501.160

7448.339

 

 

Other Income

7.054

15.005

8.433

 

 

TOTAL                                     (A)

9578.431

8516.165

7456.772

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

8204.814

7225.298

6185.865

 

 

Manufacturing service costs

35.601

48.106

384.266

 

 

Employee related expenses

81.611

81.103

80.828

 

 

Administrative selling other expenses

359.327

333.903

0.000

 

 

TOTAL                                     (B)

8681.353

7688.410

6650.959

 

 

 

 

 

Less

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

897.078

827.755

805.813

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

357.905

300.961

253.474

 

 

 

 

 

 

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

539.173

526.794

552.339

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

528.430

434.303

477.452

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

10.743

92.491

74.887

 

 

 

 

 

Less

TAX                                                                  (H)

(3.444)

23.375

25.998

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

14.187

69.116

48.889

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

648.173

579.057

526.591

 

 

 

 

 

Add

EXCESS PROVISION OF INCOME TAX FOR EARLIER YEARS W/BACK

0.000

0.000

3.577

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

662.360

648.173

579.057

 

 

 

 

 

 

CIF VALUE OF IMPORTS

 

 

 

 

 

Raw Materials

178.225

163.344

496.421

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.10

0.50

0.38

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.07.2011

31.07.2010

31.07.2009

PAT / Total Income

(%)

0.15

0.81

0.66

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.11

1.09

1.01

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.09

0.96

0.86

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.01

0.05

0.04

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

4.40

2.85

2.73

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.64

1.85

2.24

 

 

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 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

No

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

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

No

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

 

 

UNSECURED LOANS

 

Unsecured Loans

31.07.2011

31.07.2010

 

 

(Rs. In Millions)

Other debt unsecured

1000.000

2499.981

Total

1000.000

2499.981

 

 

OPERATIONS AND FINANCIAL RESULTS:

 

During the year, the Net Sales of the Company have shown a remarkable increased of Rs. 1070.200 Millions, from Rs. 8501.200 Millions to Rs. 9571.400 Millions, representing a growth of 12.59%.The Total Expenditure amounted to Rs. 9567.700 Millions as against Rs. 8423.700 Millions for the previous year, representing an increase of Rs. 1144.000 Millions. However, the Net Profit of the Company has declined from Rs. 51.500 Millions to Rs. 7.100 Millions, due to loss on exchange fluctuation and increase in depreciation.

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U29302PN1996PLC104800

Name of the company

APPLICOMP (INDIA) LIMITED

Address of the registered office or of the principal place of  business in India of the company

Gangapur Gin Compound Station Road, Ahmednagar - 414001, Maharashtra, India

Email ID: info@applicomp.in

This form is for

Creation of charge

Type of charge

Book Debts

Movable Property

Others (Current Assets)

Particular of charge holder

Andhra Bank, 16th Floor, Earnest House, NCPA Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

Email ID: bmmum1128@andhrabank.co.in

Nature of description of the instrument creating or modifying the charge

Deed of Hypothecation dated August 06, 2012 executed by Applicomp (India) Limited (the Company) in favour of Andhra Bank (the Bank).

Date of instrument Creating the charge

06.08.2012

Amount secured by the charge

1500.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

The rate of interest shall be floating linked to SBI Base Rate + spread of 4.00% for the entire tenor of the loan.

 

Terms of Repayment

6 months from the date of first disbursement.

 

Margin

NIL

 

Extent and Operation of the charge

The subservient charge operates as inter alia, security for the due repayment, redemption and discharge by the Company of the term loan facility of Rs. 1500.000 Millions availed jointly by the Company from the Bank together with all interest, additional interest, default interest, and any other amounts, fees, costs, charges, expenses and other monies due and payable to the Lender under the Facility Agreement.

 

Others

As may be agreed to between the Company and the Bank from time to time.

Short particulars of the property charged

Subservient charge by way of hypothecation of the Company’s entire movables, including movable machinery, machinery spares, tools and accessories, furniture and fixtures, vehicles and all other movable assets including stock of raw materials, consumable stores etc. present and future and on the current assets both present and future, more specifically of the Deed of Hypothecation.

 

 

contingent liabilities:

(Rs. in millions)

Particulars

31.07.2011

31.07.2010

a) Letter of Guarantees

149.688

183.747

b) Letters of Credit opened

143.504

143.293

c) Customs Duty demands under dispute

369.808

369.808

d) Excise Duty demands under dispute

13.750

13.769

e) Service Tax demands under dispute

7.034

7.034

 

 

Fixed Assets

 

Tangible Assets

·         Land

·         Buildings

·         Plant and Machinery

·         Electrical Installation

·         Computers

·         Furniture and Fixtures

·         Office Equipments

·         Vehicles

 

Intangible Assets

·         Computer Software

 

 

 

 

 

 

 



 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

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

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 53.99

UK Pound

1

Rs. 83.72

Euro

1

Rs. 72.09

 

 

INFORMATION DETAILS

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

34

 

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.