MIRA INFORM REPORT

 

 

Report Date :

18.03.2013

 

IDENTIFICATION DETAILS

 

Name :

LOK PRAKASHAN LIMITED

 

 

Registered Office :

Gujarat Samachar Bhavan, Khanpur, Ahmedabad – 380 001, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

21.09.1940

 

 

Com. Reg. No.:

04-000151

 

 

Capital Investment / Paid-up Capital :

Rs.1.594 Millions

 

 

CIN No.:

[Company Identification No.]

U22190GJ1940PLC000151

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHML00258G

 

 

PAN No.:

[Permanent Account No.]

AAACL2742F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Publication of Newspaper (Gujarat Samachar). 

 

 

No. of Employees :

600 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (66)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 31995000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well established and a reputed company having fine track record. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

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

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

INDIAN ECONOMIC OVERVIEW

 

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.

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Rajesh Gajjar

Designation :

H.R. Department

Contact No.:

91-79-30410000

Date :

15.03.2013

 

 

LOCATIONS

 

Registered Office / Factory :

Gujarat Samachar Bhavan, Khanpur, Ahmedabad – 380 001, Gujarat, India

Tel. No.:

91-79-30410000/ 22304040/ 10/ 25508001/ 2/ 3/ 4/ 25504060

Fax No.:

91-79-25502000/ 25504040

E-Mail :

editor@gujaratsamchart.com

pinakincs@yahoo.com

gsadvertise@yahoo.com

accounts.lokprakashan@gmail.com

Website :

http://www.gujaratsamachar.com

Area :

80000 sq. ft.

Location :

Owned

 

 

Printing Press :

Located at:

 

·         Khanpur – Ahmedabad

·         Ring Road – Surat

·         Lower Parel – Mumbai, Maharashtra, India

 

 

Branch Office :

Located at:

 

·         Vadodara

·         Surat

·         Rajkot

·         Bhavnagar

·         Mumbai

·         Delhi

·         Kolkata

·         Chennai

·         Hyderabad

·         Pune

·         Bangalore

·         Nagpur

 

 

Overseas Office :

3, Lincoln HWY, Suite # 307,Edison,N.J.- 08820 U.S.A.

Tel. No.:

(732)-226-0263/ 452-1755

Fax No.:

(732)-226-0264/ 452-1756

 

 

DIRECTORS

 

As on 29.09.2012

 

Name :

Mr. Bahubali Shantilal Shah

Designation :

Managing Director

Address :

Gujarat Samachar Bhavan, Khanpur, Ahmedabad – 380 001, Gujarat, India

Date of Birth/Age :

09.09.1951

Qualification :

B. Com 

Experience :

36 Years

Date of Appointment :

01.08.2010

DIN No.:

00347465

PAN No.:

AINPS8897E

 

 

Name :

Mrs. Smrutiben Shreyans Shah

Designation :

Managing Director

Address :

31, Anand Nagar Society Sarkhej Road, Paldi Ahmedabad – 380 007, Gujarat,  India 

Date of Birth/Age :

10.06.1943

Qualification :

B.A.

Experience :

44 Years

Date of Appointment :

01.08.2010

DIN No.:

01320759

PAN No.:

ACKPS9275P

 

 

Name :

Mr. Rajivbhai Chinubhai Lalbhai

Designation :

Director

Address :

Chinubhai Chimanlala Sheth Bunglow, Near Adeshwar Flat, Opposite Shahibaug Police Chowky, Shahibaug, Ahmedabad – 380 004, Gujarat, India

Date of Birth/Age :

01.11.1952

Qualification :

B. Com

Date of Appointment :

27.10.2007

DIN No.:

00309545

 

 

Name :

Mr. Mahesh Jayantilal Shah

Designation :

Director

Address :

1002, Parth 7 Parnakunj, Near Ambawadi Circle, Ellisbridge, Ahmedabad – 380 006, Gujarat, India

Date of Birth/Age :

15.08.1950

Qualification :

B. Com

Date of Appointment :

27.10.2007

DIN No.:

00191844

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajesh Gajjar

Designation :

H.R. Department

 

 

Name :

Arvind D. Gaudana

Designation :

Practicing Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

MAJOR SHAREHOLDERS - NOT AVAILABLE

 

As on 29.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

7.00

Directors or relatives of directors

 

81.26

Others

 

11.74

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Publication of Newspaper (Gujarat Samachar). 

 

 

Products :

Item Description

 

Item Code No.

Newspaper Daily

49021010

Journal Periodical

49021002

 

 

Imports :

 

Products :

·         Raw Materials

Countries :

·         Hong Kong

·         China

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

600 (Approximately)

 

 

Bankers :

·         Bank of Baroda, Bhadra Branch, Ahmedabad, Gujarat, India

·         HDFC Bank Limited, Navrangpura Branch

·         State Bank of India

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Sorab S. Engineer and Company

Chartered Accountants

Address :

381, Ismail Building, Dr. D.N. Road, Fort, Mumbai – 400 001, Maharashtra, India

PAN No.:

AAAFS5191E

 

 

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives

·         Gujarat Samachar Inc, United States

·         Amrut Investments, India

 

 

CAPITAL STRUCTURE

 

As on 29.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

10000

Equity Shares

Rs.200/- each

Rs.2.000 Millions

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

10000

Equity Shares

Rs.200/- each

Rs.2.000 Millions

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

7969

Equity Shares

Rs.200/- each

Rs.1.594 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

1.594

1.594

1.594

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

7997.055

7005.134

6026.330

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

7998.649

7006.728

6027.924

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

7998.649

7006.728

6027.924

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

805.920

300.142

205.863

Capital work-in-progress

46.998

57.680

76.604

 

 

 

 

INVESTMENT

4488.089

3339.043

4223.451

DEFERRED TAX ASSETS

16.681

21.139

25.807

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

811.375
991.537
471.433

 

Sundry Debtors

643.596
607.811
511.192

 

Cash & Bank Balances

977.003
1075.505
1020.819

 

Other Current Assets

24.142
1249.291
34.077

 

Loans & Advances

1134.869
846.380
1930.974

Total Current Assets

3590.985
4770.524

3968.495

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

643.487
1207.412

650.152

 

Other Current Liabilities

237.855
208.546

231.313

 

Provisions

68.682
65.842
1590.831

Total Current Liabilities

950.024
1481.800
2472.296

Net Current Assets

2640.961
3288.724
1496.199

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

7998.649

7006.728

6027.924

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

3826.710

3514.677

3480.982

 

 

Other Income

493.129

343.226

364.648

 

 

TOTAL                                     (A)

4319.839

3857.903

3845.630

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

2105.420

1776.888

2614.750

 

 

Purchases of stock-in-trade

0.000

20.196

 

 

 

Changes in inventories of finished goods, work-in-progress and

stock-in-trade

2105.420

1776.888

 

 

 

Employee benefit expense

107.122

95.439

 

 

 

Other expenses

597.477

498.388

 

 

 

TOTAL                                     (B)

4915.439

4167.799

2614.750

 

 

 

 

 

Less

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

(595.600)

(309.896)

1230.880

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

8.955

0.671

0.488

 

 

 

 

 

 

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

(604.555)

(310.567)

1230.392

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

52.587

41.108

37.333

 

 

 

 

 

 

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

(657.142)

(351.675)

1193.059

 

 

 

 

 

Less

TAX                                                                  (H)

417.458

410.168

363.500

 

 

 

 

 

 

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

(1074.600)

(761.843)

829.559

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

33.165

37.058

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

NA

NA

28.688

 

 

Tax on Dividend

NA

NA

4.764

 

 

Transfer to General Reserve

NA

NA

800.000

 

BALANCE CARRIED TO THE B/S

NA

NA

33.165

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1850.717

2099.533

986.920

 

 

Capital Goods

5.133

 

 

 

 

Stores & Spares

3.121

 

 

 

TOTAL IMPORTS

1858.971

2099.533

986.920

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(129354.00)

(127374.00)

104098.00

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

(24.88)
(1975)
21.57

 

 

 
 
 

Net Profit Margin

(PBT/Sales)

(%)

(17.17)
(10.01)
34.27

 

 

 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)

(14.95)
(6.94)
28.58

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

(0.08)
(0.05)
0.20

 

 

 
 
 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00
0.00
0.00

 

 

 
 
 

Current Ratio

(Current Asset/Current Liability)

 

3.78
3.22
1.61

 

 

 

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

643.487
1207.412

650.152

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

Yes

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

Yes

8) No. of employees

Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

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

Yes

20) Export / Import details (if applicable)

Yes

21) Market information

--

22) Litigations that the firm / promoter involved in

Yes

23) Banking Details

Yes

24) Banking facility details

No

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

No

 

 


LITIGATION DETAILS:

 

HIGH COURT OF GUJARAT

TAX APPEAL No. 789 of 2011 To TAX APPEAL No. 793 of 2011

Status: PENDING                                (Converted from: ST/1476/2011)                 CCIN No:001092201100789

 

Last Listing Date: 05/07/2012

 

Coram:               HONOURABLE MR. JUSTICE VIJAY MANOHAR SAHAI

                          HONOURABLE MR. JUSTICE N.V. ANJARIA

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISIONER OF INCOME TAX

MRS MAUNA M BHATT for: Applicant (s) - 1

S.NO.

Name of the Respondent

Advocate On Record

1

LOK PRAKASHAN LIMITED

MR B S SOPARKAR for : Opponent(s) -  1

 

Presented On             : 13/04/2011                                            Registered On              : 13/04/2011

Bench Category         : DIVISION BENCH                                   District                         : AHMEDABAD

Case Originated From: THROUGH ADVOCATE                          Listed                           : 2 times

Stage Name                : FOR REGULAR ADMISSION (SPL.)

                                

Classification           DB – OJ – TAX APPEAL – INCOME TAX ACT, 1961 – APPEAL TO HIGH COURT – U/S              260 OF IT ACT - LONG TERM CAPITAL GAIN – U/S 54EA                                                  

Act        INCOME-TAX ACT, 1961                                               

 

Office Details

S. No

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

13/04/2011

CERTIFIED COPY

MRS MAUNA BHATT ADVOCATE for PETITIONER(s)  - 1

6

-

2

13/04/2011

MEMO OF APPEAL/ PETITION/ SUIT

MRS MAUNA BHATT ADVOCATE for PETITIONER(s)  - 1

20

-

3

21/08/2012

VAKALATNAMA

MR B S SOPARKAR ADVOCATE for RESPONDENT(s)  - 1

5

-

Court Proceedings

Notified Date

Court Code

Board Sr. No.

Stage

Action

Coram

04/07/2012

3

--

For ADMISSION TAXATION MATTERS BOARD NO. I

Next Date

HONOURABLE MR. JUSTICE VIJAY MANOHAR SAHAI

HONOURABLE MR. JUSTICE N.V. ANJARIA                      

05/07/2012

3

--

FOR REGULAR ADMISSION (SPL.)

FIXED RULE/ ADMIT

HONOURABLE MR. JUSTICE VIJAY MANOHAR SAHAI

HONOURABLE MR. JUSTICE N.V. ANJARIA                      

Available Orders

S. No.

Case Details

Judge Name

Order Date

CAV

Judgment

1

Tax Appeal/789/2011

HONOURABLE MR. JUSTICE VIJAY MANOHAR SAHAI

HONOURABLE MR. JUSTICE N.V. ANJARIA                      

05/07/2012

N

N

Certified Copy

Applicant Name

Applicant Type

Application Date

UOL Number

Order Date

Notify Date

Delivery date

Status

Nature of Document

MRS MAUNA M. BHATT

Ordinary

06/07/2012

O/21012/2012

05/07/2012

09/07/2012

10/07/2012

Delivered

--

 

COMPANY BACKGROUND:

 

The Company is in the business of publishing newspapers. The Company’s Product “Gujarat Samachar” is the largest read Gujarati language daily newspaper in India. Presently, the Company distributes editions from Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar, Mumbai, Mehsana and Bhuj. The Company derives its revenue mainly from the sale of these publications and advertisements published in the publications.

 

OPERATIONAL PERFORMANCE:

 

The Company has received income of Rs.932.133 millions (Previous Year Rs.872.367 millions) from Sales and Subscription, Rs.2841.719 millions (Previous Year Rs.3244.624 millions) from Advertisements and Rs.545.987 millions (previous year Rs.386.352 millions) towards other income, which includes Interest, Dividends and others. Company has achieved total income of Rs.4319.839 millions as against total income of previous year Rs.3858.102 millions. Thus, Company has tremendous growth record.

 

The Company is Deploying its surplus fund into investment in Primary Market and Secondary Market including Bonds and Mutual Fund. Further investment has been made in Land, Plant and Machinery, Gold and others also.

 

FIXED ASSETS:

 

·         Freehold Land

·         Building

·         Plant and Machinery

·         Electric Fittings

·         Office Equipment

·         Furniture and Fixture

·         Library

·         Vehicles

 

 

 


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.54.16

UK Pound

1

Rs.81.74

Euro

1

Rs.70.50

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

SMN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

YES

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

66

 

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.