MIRA INFORM REPORT

 

 

Report Date :

22.05.2013

 

IDENTIFICATION DETAILS

 

Name :

METRO-LINK EXPRESS FOR GANDHINAGAR AND AHMEDABAD (MEGA) COMPANY LIMITED

 

 

Registered Office :

5th Floor, Nirman Bhavan, Opposite New Sachivalaya, Gate No. 4, ‘CH’ Road, Sector 10/A, Gandhinagar – 382010, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

04.02.2010

 

 

Com. Reg. No.:

04-059407

 

 

Capital Investment / Paid-up Capital :

Rs. 100.000 Millions

 

 

CIN No.:

[Company Identification No.]

U60200GJ2010SGC059407

 

 

PAN No.:

[Permanent Account No.]

AAGCM3807N

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged into Metro Rail Projects.

 

 

No. of Employees :

Information declined by the management 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (31)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1887000

 

 

Status :

Project under implementation

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a State Government assisted Company.

 

Even though the company was incorporated during February 4, 2010, the project of the company is still under implementation.

 

The financial position of the company is good as it is operating on its own funds and does not have any borrowings. It has incurred huge pre-operative expenses. Payments are unknown.

 

However, 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.

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Nikhil

Designation :

Accountant

Contact No.:

91-79-23248572

Date :

20.05.2013

 

 

LOCATIONS

 

Registered Office :

5th Floor, Nirman Bhavn, Opposite New Sachivalaya, Gate No. 4, ‘CH’ Road, Sector 10/A, Gandhinagar – 382010, Gujarat, India

Tel. No.:

91-79-23248572

Fax No.:

91-79-23248573

E-Mail :

info@gujaratmetrorail.com

cs@gujaratmetrorail.com

manager@gujaratmetrorail.com

Website :

www.gujaratmetrorail.com

 

 

Corporate Office :

802, 803, 8th Floor, GNFC Info Tower, Sarkhej-Gandhinagar Highway, Bodakdev, Ahmedabad – 380054, Gujarat, India

Tel. No.:

91-79-26859765/ 26800000

Fax No.:

91-79-26859766

 

 

DIRECTORS

 

AS ON 21.01.2013

 

Name :

Mr. Sanjay Gupta

Designation :

Executive Chairman

Address :

B/202, Dhananjay Towers, Near Shyamal Row House, Satellite Road, Ahmedabad - 380051, Gujarat, India

Date of Birth/Age :

19.06.1963

Qualification :

B.E (Civil)

Date of Appointment :

08.04.2011

PAN No.:

ABUPG5799B

DIN No.:

00006361

 

 

Name :

Mr. Arvind Kumar Sharma

Designation :

Director

Address :

F-3, Samarpan Flat, Gulbai Tekra, Ahmedabad - 380006, Gujarat, India

Date of Birth/Age :

11.07.1962

Qualification :

IAS

Date of Appointment :

04.02.2010

DIN No.:

01312673

 

 

Name :

Mr. Syed Jawaid Haider

Designation :

Director

Address :

Bunglow No. KH-19, Sector 19, Near Circuit House, Gandhinagar - 382019, Gujarat, India

Date of Birth/Age :

03.12.1965

Qualification :

IAS

Date of Appointment :

04.02.2010

DIN No.:

02879522

 

 

Name :

Mr. Indrajeet Prasad Gautam

Designation :

Director

Address :

K-201, Sector - 19, Gandhinagar - 382019, Gujarat, India

Date of Birth/Age :

02.04.1953

Qualification :

IAS

Date of Appointment :

20.07.2011

DIN No.:

00260908

 

 

Name :

Mr. Chotilal Raghunath Meena

Designation :

Director

Address :

K-516, Chh/85/9-Ch, Z Private, Plot 148 Thi, 155, Sector 20/1, Gandhinagar - 382020, Gujarat, India

Date of Birth/Age :

11.05.1952

Qualification :

IAS

Date of Appointment :

26.07.2011

DIN No.:

02597773

 

 

Name :

Mr. Lalnunmawia Chuaungo

Designation :

Director

Address :

GIPCL House, Near Amar Complex, Sama Road, Vadodara - 390008, Gujarat, India

Date of Birth/Age :

01.03.1962

Qualification :

IAS

Date of Appointment :

26.07.2011

DIN No.:

00032867

 

 

KEY EXECUTIVES

 

Name :

Mr. Chaitanya Bimalkumar Kapadia

Designation :

Secretary

Address :

B/904, Prakruti Flats, Near Suvidha Cross Roads, Near Parimal Garden, Paldi, Ahmedabad – 380007, Gujarat, India

Date of Birth/Age :

06.12.1981

Date of Appointment :

01.08.2011

PAN No.:

ARZPK9974D

 

 

Name :                                

Mr. Nikhil

Designation :

Accountant

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 21.01.2013

 

Names of Shareholders

 

No. of Shares

 

Hon. Governor of Gujarat, represented by Indrajeet Prasad Bhikhi Gautam, IAS

 

10

Hon. Governor of Gujarat, represented by Kanubhai Dahyabhai Suthar

 

10

Hon. Governor of Gujarat, represented by Arvind Kumar Sharma, IAS

 

10

Hon. Governor of Gujarat, represented by Guruprasad Mohapatra, IAS

 

10

Hon. Governor of Gujarat, represented by Syed Jawaid Haider, IAS

 

10

Hon. Governor of Gujarat, represented by Mamta Verma, IAS

 

10

Hon. Governor of Gujarat, represented by Mukesh Rajnikant Shah

 

10

Hon. Governor of Gujarat

 

89999930

 

 

 

Total

 

90000000

 

 

AS ON 21.01.2013

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Government [Central and State]

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged into Metro Rail Projects.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Ř       State Bank of India

Ř       Vijaya Bank, Industrial Finance Branch, Kamdhenu Complex, Opposite Polytechnic, Ambavadi, Ahmedabad - 380015, Gujarat, India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kantilal Patel and Company

Chartered Accountants

Address :

202, "Paritosh"Usmanpura (River Front)

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

AACFK3532D

 

 

CAPITAL STRUCTURE

 

AS ON 21.01.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,000,000,000

Equity Shares

Rs. 10/- each

Rs. 10000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

90,000,000

Equity Shares

Rs. 10/- each

Rs. 900.000 Millions

 

 

 

 

 

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

200,000,000

Equity Shares

Rs. 10/- each

Rs. 2000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10,000,000

Equity Shares

Rs. 10/- each

Rs. 100.000 Millions

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

100.000

100.000

2] Share Application Money

 

400.000

0.000

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

(28.197)

(11.460)

NETWORTH

 

471.803

88.540

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

0.000

0.000

TOTAL BORROWING

 

0.000

0.000

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

471.803

88.540

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

34.518

0.000

Capital work-in-progress

 

86.830

0.000

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERRED TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

0.000

0.000

 

Sundry Debtors

 

0.000

0.000

 

Cash & Bank Balances

 

368.366

0.000

 

Other Current Assets

 

1.066

100.000

 

Loans & Advances

 

9.530

0.000

Total Current Assets

 

378.962

100.000

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

 

16.556

11.460

 

Other Current Liabilities

 

11.396

0.000

 

Provisions

 

0.555

0.000

Total Current Liabilities

 

28.507

11.460

Net Current Assets

 

350.455

88.540

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

471.803

88.540

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

 

0.000

0.000

 

 

Other Income

 

10.712

0.000

 

 

TOTAL                                     (A)

 

10.712

0.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee Benefit Expenses

 

5.487

0.351

 

 

Other Expenses

 

16.587

11.109

 

 

TOTAL                                     (B)

 

22.074

11.460

 

 

 

 

 

Less

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

 

(11.362)

(11.460)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

0.079

0.000

 

 

 

 

 

 

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

 

(11.441)

(11.460)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

1.820

0.000

 

 

 

 

 

 

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

 

(13.261)

(11.460)

 

 

 

 

 

Less

TAX                                                                  (H)

 

3.476

0.000

 

 

 

 

 

 

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

 

(16.737)

(11.460)

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

 

(1.67)

(1.15)

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2012

31.03.2011

PAT / Total Income

(%)

 

(156.25)

0.00

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

0.00

0.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

(3.21)

(11.46)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

(0.03)

(0.13)

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

 

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

13.29

8.73

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2012

 

31.03.2011

 

 

(Rs. In Millions)

 

 

 

Trade payables

16.556

11.460

 

 

 

 

 

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 two years

Yes

12]

Profitability for last two 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

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

 

 

Note:

The registered office of the company has been shifted from B-Wing, 2nd Floor, GSCSCL Building, "CH" Road, Sector 10/A, Gandhinagar – 382010, Gujarat, India to the present w.e.f.27.09.2011.

 

 

CORPORATE INFORMATION

 

Subject domiciled in India and incorporated under the provisions of the Companies Act, 1956 (No. 1 of 1956). The Company’s main object is to undertake and carry on the business as nodal agency and/ or Concessioning Authority for Mass Rapid Transport System by establishing Metro-Link between Gandhinagar and Ahmedabad and in and around and, its expansion in the State of Gujarat.

 

 

FINANCIAL RESULTS

 

The Company was incorporated on 04th February, 2010. The Company has completed its second Financial Year ended on 31.03.2012. During the period, the Company is yet to commence its operation and hence there is no revenue during the period ended on 31.03.2012. But the Company has made substantial progress towards the effective implementation of the Project.

 

 

BUSINESS OPERATION / ACTIVITIES:

 

The Company, being in the business of long term infrastructure project, during the period is yet to start its business operation. The Company has a loss of Rs. 16.737 Millions on account of administrative and project related expenses. The Company has also incurred Rs. 86.800 Millions towards Capital Work-in-Progress for speedy and effective implementation of the Project. The Directors are also continuously looking for avenues for future growth of the Company in Metro Rail industry.

 

MEGA aims to create a landmark metro rail project not only for the state of Gujarat but also for the whole country. MEGA is committed to deliver most cost efficient metro within the shortest time span possible in the country.

 

 

PHASE I OF THE PROJECT

 

Of the complete network, Line 1A, Line 3, Line 4 and Line 5 have been selected to be implemented in Phase 1, the details of which are presented below

 

Ř       Line 1A connects State administrative capital with Ahmedabad city. This line connects to major hubs in the Gandhinagar like Akshardham, Mahatma Mandir, Indroda Nature Park, Sachivalaya, Mahatma Mandir, Pathik Ashram etc. Further, the city of Ahmedabad is growing towards its north and Gandhinagar towards its south. The development of this corriodr will help in further catalyzing systematic high density urban growth. Presently the region is envisaging rapid urban growth with upcoming of institues like Petroleum University, Law University, National Institute of Design etc.

 

Ř       Line 3 connecting to the International Airport of Ahmedabad traverses along the river edge connecting Motera Stadium.

 

Ř       Line 4 connects to Mahatma Mandir, one of the biggest business exhibition and convention centre which hosts event like Vibrant Gujarat.

 

Ř       Line 5 connects the upcoming SEZ, Gujarat International Finance- Tec (GIFT) City. The SEZ proposes to generate total 1 million employments which would add atleast 15 million populations between the twin city regions of Gandhinagar and Ahmedabad

 

 

PROJECT STATUS:

 

The company has made sub substantial progress towards effective and speedy implementation of the Project by finalizing the alignment for the Project and by issuing various procurement and construction related EOIs. A meeting of the High Power Committee was held on 07.06.2012 to finalize the alignment for the Metro Project and the said committee, vide its letter dated 21.09.2012 approved the Metro Rail alignment of approximate 76 KMs. Government of Gujarat, vide its GR dated 02.01.2012 has formed Monitoring Committee under the Chairmanship of Chief Secretary, Gujarat for effective implementation of the Project and has also formed a Committee of High Powered Officials under the Chairmanship of Hon. Minister, Revenue Department, Gujarat for necessary guidance and for taking important policy related decisions. The Company has also issued various procurement and construction related EOIs and RFPs.

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U60200GJ2010SGC059407

Name of the company

METRO-LINK EXPRESS FOR GANDHINAGAR AND AHMEDABAD (MEGA) COMPANY LIMITED

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

5th Floor, Nirman Bhavn, Opposite New Sachivalaya, Gate No. 4, ‘CH’ Road, Sector 10/A, Gandhinagar – 382010, Gujarat, India

Email: cs@gujaratmetrorail.com

This form is for

Creation of charge

Type of charge

Book debts

Movable property (not being pledge)

Floating charge

Others [TRA and DSRA account]

Particular of charge holder

Vijaya Bank, Industrial Finance Branch, Kamdhenu Complex, Opposite Polytechnic, Ambavadi, Ahmedabad - 380015, Gujarat, India

Email: ahmifb@vijayabank.co.in

Nature of description of the instrument creating or modifying the charge

Hypothecation Agreement

Date of instrument Creating the charge

28.03.2013

Amount secured by the charge

Rs. 2500.000 Millions

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

Rate of Interest

Base Rate +1.55% + 0.25% (TP) (floating), i.e. 12% p.a., at present, payable monthly.

 

Terms of Repayment

Repayable in 12 years in equal quarterly installments commencing after construction period of 3 years plus moratorium period of 3 years with Door to door tenor of 18 years.

 

Margin

As per Bank's Sanction.

 

Extent and Operation of the charge

All the securities have been hypothecated by way of first charge in favor of bank in order to secure Term Loan of Rs. 2500.000 Millions, together with interest and all other moneys payable by the Company to the Bank.

 

Short particulars of the property charged

First Charge on all movable assets, operating cash flows, receivables, present and future pertaining to the project

 

First charge on Borrower's bank Trust and Retention Account (TRA) to be opened, where cash inflows from operation of facility, present and future, shall be deposited and utilized as per TRA Agreement

 

Assignment/Agreement to assign in favour of Lenders, rights, titles, interests, benefits, claims and demands whatsoever of Borrower from all Project Documents

 

First Charge on the Borrower's Debit Service Reserve Account (DSRA)

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2012

31.03.2011

 

(Rs. in Millions)

Estimated amount of contracts remaining to be executed on capital account and not provided for

44.289

0.000

Total

44.289

0.000


FIXED ASSETS:

 

Ř       Plant and equipment

Ř       Furniture and fixtures

Ř       Vehicles

Ř       Office equipment

Ř       Computer equipments

Ř       Other equipments

Ř       Other equipments

Ř       Leasehold improvements

Ř       Books periodicals

Ř       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. 55.04

UK Pound

1

Rs. 83.95

Euro

1

Rs. 70.93

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

2

--RESERVES

1~10

2

--CREDIT LINES

1~10

2

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--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

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

31

 

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.