MIRA INFORM REPORT

 

 

Report Date :

22.01.2013

 

IDENTIFICATION DETAILS

 

Name :

SKH SHEET METALS COMPONENTS LIMITED (w.e.f. 19.07.2011)

 

 

Formerly Known As :

SKH SHEET METALS COMPONENTS PRIVATE LIMITED (w.e.f. 16.11.2007)

VIVID SHEET METALS COMPONENTS PRIVATE LIMITED

 

 

Registered Office :

B-5, Vrindavan Apartments, Vrindavan Vihar, Kings Road, Jaipur – 302 019, Rajasthan

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

30.05.2005

 

 

Com. Reg. No.:

17-020833

 

 

Capital Investment / Paid-up Capital :

Rs.120.000 millions

 

 

CIN No.:

[Company Identification No.]

U50300RJ2005PLC020833

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNES23784F

 

 

PAN No.:

[Permanent Account No.]

AACCV0528K

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Exhaust Systems for Automobiles.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 159000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record. The latest financials are not made available with the Government Department.

 

As per previous year’s, there appear huge accumulated losses recorded by the company.

 

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

 

The company can be considered for business dealings with some cautions.

 

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

 

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 :

B-5, Vrindavan Apartments, Vrindavan Vihar, Kings Road, Jaipur – 302 019, Rajasthan, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

secretarial@skhmetals.com

sitansudash@skhmetals.com

 

 

Factory:

Gat No.542-545, Behind Bombay Dyeing, Village Dhok Sanghavi, Ranjangaon, MIDC, Pune - 412 220, Maharashtra, India

Tel No.:

91-2138-675401

 

 

DIRECTORS

 

As on 25.09.2012

 

Name :

Mr. Parvesh Soni

Designation :

Director

Address :

2248, Sector - 8, Faridabad, Haryana, India

Date of Birth/Age :

04.07.1963

Qualification :

Chartered Accountant

Date of Appointment :

22.09.2009

DIN No.:

00009994

 

 

Name :

Mr. Ajay Kumar Bedi

Designation :

Director

Address :

176, Deerwood Chase, Unitech Nirvana Country, Sector-50, Gurgaon – 122 001, Haryana, India

Date of Birth/Age :

08.10.1951

Qualification :

BE

Date of Appointment :

09.09.2010

DIN No.:

00171608

 

 

Name :

Mr. Sanjay Kohli

Designation :

Director

Address :

24-A, DDA Flats, Ber Sarai, New Delhi, India

Date of Birth/Age :

03.06.1976

Qualification :

BE

Date of Appointment :

16.02.2008

DIN No.:

02013973

 

 

Name :

Mr. Sunandan Kapur

Designation :

Director

Address :

B - 5, Chirag Enclave New Delhi, India

Date of Birth/Age :

21.08.1974

Date of Appointment :

27.02.2012

DIN No.:

00003638

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 25.09.2012

 

Names of Shareholders

 

 

No. of Shares

Suave Infrastructure Private Limited, India

 

2600

Chrous Infrastructure Private Limited, India

 

4900

Ripple Infrastructure Private Limited, India 

 

2500

Ashok Kapur

 

11989700

Arti Kapur

 

100

Sunandan Kapur

 

100

Supriya Kapur

 

100

Total

 

12000000

 

As on 25.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

0.08

Directors or relatives of directors

 

99.91

Other top fifty shareholders

 

0.01

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Exhaust Systems for Automobiles.

 

 

Products :

Item Code No. (ITC Code)

ITC-033-043

Product Description

Sheet Metals Components,

Fuel Tank, Gear Shifter

Item Code No. (ITC Code)

87089200

Product Description

Fuel Tank

Item Code No. (ITC Code)

87089200

Product Description

Axle Housing

Item Code No. (ITC Code)

87089200

Product Description

Heat Shield

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Installed Capacity*

 

Actual Production

Qty

Fuel Tank

88128 Nos.

21988

Gear Shifter

Nil

Nil

Axle Housing

86400 Nos.

18907

Heat Shield/Stamping

72161280 Nos.

7913635

 

 

 

 

Installed capacity is as per a certificate issued by the Management and is not verified by the Auditors being a Technical matter.

 

*Licensing requirement for automotive parts, including the company’s product, has been dispensed with effective July 25, 1991.

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

v  Axis Bank Limited, 2nd Floor, Statesman House, 148, Barakhamba Road, New Delhi – 110 001,  India

v  State Bank of Travancore, Udyog Vihar, Phase-V, Sector-18, Gurgaon – 122 016, Haryana, India

v  Axis Bank Limited., 4/10, OPG House, Asaf Ali Road, New Delhi – 110 002, India

v  HDFC Bank Limited

 

 

Facilities :

Secured Loans

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

Rupee term loans - secured

310.445

84.937

Total

310.445

84.937

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Baweja and Kaul

Chartered Accountants

Address :

A-1, 104, Lalwani Vastu, Sakore Nagar, Viman Nagar, Pune – 411 014, Maharashtra, India

Tel. No.:

91-20-41283976

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

AABFB1274A

 

 

Associates :

v  ABR Auto Private Limited

v  AKPS Auto Accessories Private Limited

v  Amcon Estates Private Limited

v  Charmwood Developers Private Limited

v  Chorus Tours and Travels Private Limited

v  Gain Properties Private Limited

v  Gladdolia Farms Private Limited

v  Hartik Estate Private Limited

v  Himanshu Enterprises Private Limited

v  Kharti Infrastructure Private Limited

v  Krishna Interior Private Limited

v  Krishna Ishizaki Auto Limited

v  Krishna Maruti Limited

v  Krishna Package Trips Limited

v  Krishna Quinette Seats Private Limited

v  Luxurious Bus Seats Private Limited

v  Luxurious Car Seats Private Limited

v  Magneti Marelli SKH Exhaust Systems Private Limited

v  Munradtech Air Filteration Company Private Limited

v  Narcissus Auto Sheet Metals Private Limited

v  Pasa Infrastructure Private Limited

v  Prudent Management Strategies Private Limited

v  Radiant Sheet Metal Components Private Limited

v  Ripple Infrastructure Private Limited

v  Ritsi Investments Private Limited

v  Roz Ka Meo Components Private Limited

v  S. Mehta Investments Private Limited

v  SKH Auto Components Private Limited

v  SKH Auto Parts Private Limited

v  SKH Buildcon Private Limited

v  SKH Buildwell Private Limited

v  SKH Cabs Manufacturing Private Limited

v  SKH Car Seats Private Limited

v  SKH Constructwell Private Limited

v  SKH Education Private Limited

v  SKH Global Travels Private Limited

v  SKH Infrastructure Developers Private Limited

v  SKH Management Services Limited

v  SKH Media Private Limited

v  SKH Metals Limited

v  SKH Real Estate Private Limited

v  Spectrum Seating Systems Services Private Limited

v  Swapn Farms Private Limited

v  Tulip Farms Private Limited

v  Uranus Auto Trims Private Limited

v  Venus Estates Private Limited

 

 

CAPITAL STRUCTURE

 

As on 25.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

12000000

Equity Shares

Rs.10/- each

Rs.120.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

12000000

Equity Shares

Rs.10/- each

Rs.120.000 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

120.000

120.000

0.100

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(80.362)

(25.315)

(7.141)

NETWORTH

39.638

94.684

(7.041)

LOAN FUNDS

 

 

 

1] Secured Loans

310.445

84.937

0.000

2] Unsecured Loans

76.721

84.132

75.375

TOTAL BORROWING

387.166

169.069

75.375

DEFERRED TAX LIABILITIES

0.000

1.297

0.524

 

 

 

 

TOTAL

426.804

265.051

68.858

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

246.259

118.594

12.832

Capital work-in-progress

163.628

27.439

14.203

 

 

 

 

Preoperative Expenses (Pending allocation to Fixed Assets)

0.000

1.136

4.977

 

 

 

 

INVESTMENT

47.575

60.397

32.575

DEFERRED TAX ASSETS

23.228

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

103.821

31.541

7.620

 

Sundry Debtors

112.738

22.927

8.258

 

Cash & Bank Balances

3.545

4.748

2.383

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

96.181

47.275

8.159

Total Current Assets

316.285

106.491

26.420

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

363.055

47.930

20.566

 

Other Current Liabilities

5.632

0.000

0.589

 

Provisions

1.488

1.082

1.002

Total Current Liabilities

370.175

49.012

22.157

Net Current Assets

(53.890)

57.479

4.263

 

 

 

 

MISCELLANEOUS EXPENSES

0.004

0.006

0.008

 

 

 

 

TOTAL

426.804

265.051

68.858

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Operating revenue, net

417.090

91.748

12.112

 

 

Other income

10.381

0.771

0.038

 

 

TOTAL                                     (A)

427.471

92.519

12.150

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

354.691

71.243

10.529

 

 

Manufacturing service costs

58.774

9.276

0.468

 

 

Employee related expenses

23.292

15.390

4.619

 

 

Administrative selling other expenses

35.932

10.973

2.861

 

 

Prior period items

0.301

0.017

0.000

 

 

TOTAL                                     (B)

472.990

106.899

18.477

 

 

 

 

 

Less

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

(45.519)

(14.380)

(6.327)

 

 

 

 

 

Less

INTEREST FINANCIAL CHARGES                     (D)

22.042

1.517

0.002

 

 

 

 

 

 

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

(67.561)

(15.897)

(6.329)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

12.010

1.491

0.148

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                 (G)

(79.571)

(17.388)

(6.477)

 

 

 

 

 

Less

TAX                                                                  (H)

(24.524)

0.786

0.664

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

(55.047)

(18.174)

(7.141)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(25.315)

(7.141)

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(80.362)

(25.315)

(7.141)

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

28.968

0.640

0.000

 

 

Bought Out Components

12.178

12.499

6.827

 

 

Capital Goods

13.386

4.893

0.000

 

TOTAL IMPORTS

54.532

18.032

6.827

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(4.59)

(87.76)

(714.09)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

(12.88)
(19.64)
(58.77)

 

 

 
 
 

Net Profit Margin

(PBT/Sales)

(%)

(19.08)
(18.95)
(53.48)

 

 

 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)

(14.14)
(7.73)
(16.50)

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

(2.01)
(0.18)
0.92

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

19.11

2.30

(13.85)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.85

2.17

1.19

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

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

No

 

 


Note:

The registered office of the company has been shifted from 229, Pink City Tower, Near Peetal Factory, Jaipur - 302 016, Rajasthan to the present address w.e.f. 03.09.2011.

 

Unsecured Loans

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

Loans directors - unsecured

76.721

84.132

Total

76.721

84.132

 

FINANCIAL HIGHLIGHTS

 

During the year the Company has suffered loss of Rs.55.047 millions due to investment in its project.

 

The Company has been converted into Public Limited Company w.e.f. 19th July, 2011.

 

CONTINGENT LIABILITIES: (AS ON 31.03.2011)

 

Guarantee given to Corporation Bank on behalf of Magneti Marelli SKH Exhaust Systems Private Limited amounting to Rs.260.000 millions. The Balance outstanding of the loan taken by Magneti Marelli SKH Exhaust Systems Private Limited as at March 31, 2011 is Rs.53.300 millions.

 

Bankers Charges Report as per Registry

Corporate identity number of the company

U50300RJ2005PLC020833

Name of the company

SKH SHEET METALS COMPONENTS LIMITED

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

B-5, Vrindavan Apartments, Vrindavan Vihar, Kings Road, Jaipur – 302 019, Rajasthan, India

E-Mail: sitansudash@skhmetals.com

This form is for

Modification of charge

Charge identification number of the modified 

10239664

Type of charge

Book Debts

Movable Property (not being pledge)

Particular of charge holder

Axis Bank Limited, 2nd Floor, Statesman House, 148, Barakhamba Road, New Delhi – 110 001,  India

E-Mail: f8.axisbank@gmail.com

Nature of description of the instrument creating or modifying the charge

Supplemental Deed of Hypothecation.

Date of instrument Creating the charge

17.08.2012

Amount secured by the charge

Rs.410.000 millions

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

Rate of Interest:

As per Sanction Letter No.AXISB/MC-1/SK/12-13/136 dated 17.08.2012 to be amended from time to time.

 

Terms of Repayment:

As per Sanction Letter No.AXISB/MC-1/SK/12-13/136 dated 17.08.2012 to be amended from time to time.

 

Margin:

As per Sanction Letter No.AXISB/MC-1/SK/12-13/136 dated 17.08.2012 to be amended from time to time.

 

Extent and Operation of the charge:

Extent and Operation - 100%

 

Others:

the above is to secure the following credit facilities :-

 

Cash Credit / WCDL = Rs.250.000 millions

EPC/FBP/FBD (as a sublimit of CC) = (Rs.50.000 millions)

Letter of Credit = Rs.140.000 millions

Bank Guarantee = Rs.20.000 millions

LOU for Buyers Credit (sublimit of LC) = (Rs.140.000 millions)

 

One way interchangeability from WC Fund Based to WC Non Fund Based.

Short particulars of the property charged

Hypothecation by way of first and exclusive charge over all present and future current assets of the company and second charge by hypothecation of all present and future movable fixed assets of the company stored or to be stored at the company's godowns or premises or wherever else the same may be.

Date of latest modification prior to the present modification

25.04.2012

Particulars of the present modification 

Bank's first charge over all present and future current assets of the company and second charge over all present and future movable fixed assets of the company stored or to be stored at the company's godowns or premises or wherever else the same may be, already registered for Rs.270.000 millions shall stand enhanced to Rs.410.000 millions.

 

FIXED ASSETS:

 

v  Land

v  Buildings

v  Plant and Machinery

v  Furniture and Fixtures

v  Electrical Installations

v  Office Equipments

v  Computers

 

 


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.53.87

UK Pound

1

Rs.85.53

Euro

1

Rs.71.77 

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

27

 

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.