MIRA INFORM REPORT

 

 

Report Date :

28.02.2013

 

IDENTIFICATION DETAILS

 

Name :

FLASH FORGE PRIVATE LIMITED

 

 

Registered Office :

11, R.K. Industry House, Walbhot Road, Goregaon (East), Mumbai – 400 063, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

05.07.1991

 

 

Com. Reg. No.:

11-187895

 

 

Capital Investment / Paid-up Capital :

Rs. 59.800 millions

 

 

CIN No.:

[Company Identification No.]

U99999MH1991PTC187895

 

 

PAN No.:

[Permanent Account No.]

AAACF7428E

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Metal Forming, Forgings, Manuplating to Produce Products Systems used in Thermal Petroleum Nuclear Agro Biotech and Electronic Applications.

 

 

No. of Employees :

Information denied by Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 890000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a satisfactory track record. The latest financials are not made available with the government department.

 

As per previous year’s record, the financial position of the company seems to be good. 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 for normal business dealings at usual trade terms and condition.

 

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

SME2

Rating Explanation

Having high creditworthiness

Date

November, 2012

 

 

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 (GENERAL DETAILS)

 

Name :

Ms. Manisha

Designation :

Accounts Executive

Contact No.:

91-22-42769656

Date :

26.02.2013

 

 

LOCATIONS

 

Registered Office :

11, R.K. Industry House, Walbhot Road, Goregaon (East), Mumbai – 400 063, Maharashtra, India

Tel. No.:

91-22-42769656

Fax No.:

Not Available

E-Mail :

accounts@flashforge.co.in

Website :

www.flashforge.co.in

 

 

Head Office / Factory:

Plot 237, D-Block, Autonagar Industrial Area, Visakhapatnam – 530 012, Andhra Pradesh, India

Tel. No.:

91-891-3292232 / 2709373

Fax No.:

91-891-2768281

E-Mail :

sales@flashforge.co.in

 

 

Overseas Office:

Located at:

·         Mexico

·         Colombia

·         Brazil

 

 

DIRECTORS

 

As on 28.09.2011

 

Name :

Mr. Gautam Makkar

Designation :

Managing Director

Address :

101, Jasti Square Apartments, Beach Road, Vishkhapatnam – 530023, Andhra Pradesh, India

Date of Birth/Age :

24.09.1969

Date of Appointment :

01.10.1999

DIN No.:

00354956

PAN No.:

AGQPM2281D

Passport No.:

F109140

 

 

Name :

Mr. Sunil Menon

Designation :

Whole-time Director

Address :

303, RK Duplex Apartments, Beach Road, Vishakapatnam – 530023, Andhra Pradesh, India

Date of Birth/Age :

15.07.1967

Date of Appointment :

01.10.1999

DIN No.:

00409485

PAN No.:

AERPM5344Q

Passport No.:

E6990247

 

 

MAJOR SHAREHOLDERS

 

As on 28.09.2011

 

List of Equity Shareholders

 

Names of Shareholders

 

No. of Shares

Gautam Makker

 

1671700

Shalini Menon

 

970190

Sunil Menon

 

801510

N.D. Makkar

 

142600

Navigating Sales Private Limited, India

 

250000

Pushpak Advisory Private Limited, India

 

1250000

Diplok Advisory Private Limited, India

 

180000

TOTAL

 

5266000

 

List of Shareholders of Equity Shares with differential Voting Rights:

 

Names of Shareholders

 

No. of Shares

Aay Aar Consultancy Services Private Limited, India

 

100000

Lai ima Tie-Up Private Limited, India

 

100000

Navigating Sales Private Limited, India

 

100000

Nilkanth Advisory Private Limited, India

 

50000

Pushpak Advisory Private Limited, India

 

200000

Shivaraj Trade Company Private Limited, India

 

50000

Shiva Shakti Paridhan Private Limited, India

 

9000

RMS Traders Private Limited, India

 

9000

Lord Bihari Furnitures Private Limited, India

 

17000

Andhar Hotel and Resort Private Limited, India

 

10000

Twinkle Designers Wears Private Limited, India

 

10000

Banwari Exim Private Limited, India

 

10000

Swift Relocation Private Limited, India

 

10000

Loard Bihari Fashion Private Limited, India

 

20000

RGS Promoters Private Limited, India

 

10000

Prahalad Suppliers Private Limited, India

 

9000

TOTAL

 

714000

 

List of Allottees as on 12.01.2012

 

Names of Allottees

 

No. of Equity Shares

Navigating Sales Private Limited, India

 

500000

Aay Aar Consultancy Services Private Limited, India

 

500000

Sunil Menon

 

222600

TOTAL

 

1222600

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Bodies corporate

42.00

Directors or relatives of Directors

58.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Metal Forming, Forgings, Manuplating to Produce Products Systems used in Thermal Petroleum Nuclear Agro Biotech and Electronic Applications.

 

 

 

 

GENERAL INFORMATION

 

Customers :

·         ALSTOM

·         BHEL

·         ESSAR

·         HPCL

·         IFFCO

·         Indian Navy

·         Indian Oil

·         MDL

·         Reliance Industries

·         TEIL

·         Thermax

 

 

No. of Employees :

Information denied by Management

 

 

Bankers :

·         IDBI Bank, Goregaon (East) Branch, Mumbai, Maharashtra, India

Tel. No.: 91-22-26864080

 

 

Facilities :

Secured Loan

31.03.2011

(Rs. In Millions)

31.03.2010

(Rs. In Millions)

Rupee term loans banks secured

Working capital loans banks secured

Loans taken for vehicles secured

24.425

119.658

3.916

0.000

86.686

2.177

Total

147.999

88.863

 

 

 

Banking Relations :

--

 

 

Financial Institutions:

Reliance Capital Limited, “H” Block 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai – 400 710, Maharashtra, India

 

 

Auditors :

 

Name :

V. Jagannadham and Associates

Chartered Accountants

Address :

52-8-12/2, 1st Floor, Niharika Enclave, Beside Satyam Computers, Resapuvanipalem, Vishakhapatnam – 530 013, Andhra Pradesh, India

PAN No.:

AAIPV3081C

 

 

Associates/Subsidiaries :

Airotech Profiles (India) Private Limited

[CIN: U72200AP2007PTC052863]

 

 

CAPITAL STRUCTURE

 

After 28.09.2011

 

Authorized Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

7280000

Normal Equity Shares

Rs. 10/- each

Rs. 72.800 millions

720000

Differential Voting Rights

Rs. 10/- each

Rs. 7.200 millions

 

 

 

 

 

TOTAL

 

Rs. 80.000 millions

 

Issued, Subscribed & Paid-up Capital:

 

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

6488600

Normal Equity Shares

Rs. 10/- each

Rs. 64.886 millions

714000

Differential Voting Rights

Rs. 10/- each

Rs. 7.140 millions

 

 

 

 

 

TOTAL

 

Rs.  72.026 millions

 

 

As on 31.03.2011

 

Authorized Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

7280000

Normal Equity Shares

Rs. 10/- each

Rs. 72.800 millions

720000

Differential Voting Rights

Rs. 10/- each

Rs. 7.200 millions

 

 

 

 

 

TOTAL

 

Rs. 80.000 millions

 

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

5266000

Normal Equity Shares

Rs. 10/- each

Rs. 52.660 millions

714000

Differential Voting Rights

Rs. 10/- each

Rs. 7.140 millions

 

 

 

 

 

TOTAL

 

Rs. 59.800 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

59.800

40.574

33.434

2] Share Application Money

64.260

64.260

15.000

3] Reserves & Surplus

100.322

68.674

44.423

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

224.382

173.508

92.857

LOAN FUNDS

 

 

 

1] Secured Loans

147.999

88.863

50.952

2] Unsecured Loans

21.761

1.440

3.553

TOTAL BORROWING

169.760

90.303

54.505

DEFERRED TAX LIABILITIES

10.343

7.528

5.638

 

 

 

 

TOTAL

404.485

271.339

153.000

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

132.180

102.358

57.159

Capital work-in-progress

23.969

5.858

0.000

 

 

 

 

INVESTMENT

0.500

0.500

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
115.909

79.028

52.845

 

Sundry Debtors
311.242

163.207

94.174

 

Cash & Bank Balances
55.538

57.322

49.057

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
34.121

23.473

18.561

Total Current Assets
516.810

323.030

214.637

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
214.728

131.966

98.908

 

Other Current Liabilities
38.644

15.191

9.187

 

Provisions
15.602

13.250

10.701

Total Current Liabilities
268.974

160.407

118.796

Net Current Assets
247.836

162.623

95.841

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

404.485

271.339

153.000

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

Gross Income (Incl. Stock)

546.811

465.205

283.189

 

 

 

 

 

Less

Expenditure (Incl. Stock)

490.162

419.500

250.752

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

56.649

45.705

32.437

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

6.464

4.591

3.142

 

 

 

 

 

 

PROFIT BEFORE TAX

50.185

41.114

29.295

 

 

 

 

 

Less

TAX                                                                 

18.536

16.863

12.438

 

 

 

 

 

 

PROFIT AFTER TAX

31.649

24.251

16.857

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.29

--

--

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
5.79

5.21

5.95

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.73

9.67

13.45

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.22

0.23

0.32

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.76

0.52

0.59

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.92

2.01

1.81

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2011

 

31.03.2010

31.03.2009

 

(Rs. In Millions)

 

 

 

 

Creditors due others
214.728

131.966

98.908

 
 

 

 

Total
214.728

131.966

98.908

 

 

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

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

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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

NOTE:

 

Registered address of the company has been changed from IDA 237, D Block, Auto Naggar, Visakhapatnam, Andhra Pradesh, India to the present address w.e.f 09.10.2008

 

 

REVIEW OF OPERATIONS :

 

During the year, the Company has earned an income of Rs. 546.811 millions as compared to Rs. 465.205 millions during the previous year and incurred expenditure amounted to Rs. 490.162 millions as against Rs. 419.500 millions during the previous year. The Depreciation provided during the year was Rs. 6.464 millions as compared to Rs. 4.591 millions during the same period in the last year. As a result, the Company has earned a Net Profit of Rs. 31.648 millions as compared to Rs. 24.250 millions during the previous year.

 

During the year the Company has increased its turnover. The Company has identified viable customer and also taken all required steps for effective operations and for increasing the business of the company. Hence, the Company expects more business and profits in the years to come.

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2011

(Rs. In Millions)

31.03.2010

(Rs. In Millions)

Other debt unsecured

21.761

1.440

Total

21.761

1.440

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U99999MH1991PTC187895

Name of the company

FLASH FORGE PRIVATE LIMITED

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

11, R.K. Industry House, Walbhot Road, Goregaon (East), Mumbai – 400063, Maharashtra, India

e-mail: accounts@flashforge.co.in

This form is for

Creation of charge

Type of charge

Movable Property

Particular of charge holder

Reliance Capital Limited, "H" Block 1st  Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai – 400 710, Maharashtra, India

e-mail: Compsec.RCL@reliancada.com

Nature of description of the instrument creating or modifying the charge

Hypothecation agreement dated 26.05.2012.

Date of instrument Creating the charge

26.05.2012

Amount secured by the charge

Rs. 9.423 millions

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

Rate of Interest

15.50%

 

Terms of Repayment

Tenure – 24 months

Emi      - 459136/-

 

Margin

NIL

 

Extent and Operation of the charge

As Per Hypothecation Agreement

Short particulars of the property charged

Description of instrument - Engineering and Machine Tools, Make and model serial no.  -Eot crane   -S G Eot cranes 10 Ton and Jantry Girders,  Dealer and Manufacturer name -  MR INDUSTRIES

Description of instrument - Engineering and Machine Tools, Make and model serial no.  - Praxair India Private Limited - Induction heating proheat 35.

Description of instrument - Engineering and Machine Tool, Make and model serial no. -Graffenstatden- Radial Drilling Machine.

Description of instrument - Engineering and Machine Tools, Make and model serial no. -   Lectoheat Induction-Induction Heating System.

 

 

FIXED ASSETS:

·         Building

·         Plant and Machinery

·         Equipments

·         Computer equipments

·         Furniture fixtures

·         Vehicles

·         Leasehold properties

 

 

WEB DETAILS

 

NEWS

 

(India Strategic, June 2011) “In a major step forward for Indian industry, French shipbuilder DCNS India has signed an indigenisation contract with Visakhapatnam-based Flash Forge”


(Automotive Horizon, June 2011) “French Shipbuilder DCNS, Flash Forge India Sign MoU”


(RP Defense, June 8, 2011) “DCNS signe un accord de transfert de technologies pour les sous-marins Scorpène”

 

(Yahoo News, February 29, 2012) “French defence major DCNS and its Indian partner Flash Forge have delivered key equipment meant for onboard crew safety on India’s Scorpene submarines”

 

(Economic Times, April 9, 2012) “DCNS: with the expertise and cooperation of Flash Forge India, DCNS India has delivered the first locally-produced Scorpene submarine equipment to MDL.”

 

(Strat Post, March 8, 2012) “Managing Director of DCNS India: “We remain fully committed to bring to the Indian government and our partners (FF) our innovative and proven technologies.”


(Aerospace Diary, February 28, 2012) “Mazagon Dock Limited (MDL) has received the first Indian made equipment for the Scorpene submarines programme (P75). MDL has congratulated this successful industrial performance during the recently held Government to Government (G2G) meeting between India and France. The success of the manufacture and delivery of this first indigenisation contract with Flash Forge India Pvt. Ltd. is the culmination of a long and stringent process.


DCNS Press release (June 8, 2011)


India Today (October 2011) profiles FF as an innovative Indian defence firm, bringing cutting edge technology to India.

 

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.53.84

UK Pound

1

Rs.81.24

Euro

1

Rs.70.39

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

MRI

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

43

 

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.