MIRA INFORM REPORT

 

 

Report Date :

19.11.2013

 

IDENTIFICATION DETAILS

 

Name :

SASAN POWER LIMITED

 

 

Registered Office :

H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai-400710, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

10.02.2006

 

 

Com. Reg. No.:

11-190557

 

 

Capital Investment / Paid-up Capital :

Rs.564.040 Millions

 

 

CIN No.:

[Company Identification No.]

U40102MH2006PLC190557

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS67758F

 

 

PAN No.:

[Permanent Account No.]

AAKCS0723M

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Power Generation.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 228400000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a wholly owned subsidiary of Reliance Power Limited.

 

It is a well established company having satisfactory track record. The company consist of 6 Units each with a capacity of 660 MW out of which Unit No. 1 of the project has commenced its commercial operation.

 

All other units are under implementation stage. However, business is active. Payments are reported to be slow but correct.

 

The company can be considered for 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.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

 

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

 

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

 

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

 

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

 

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

 

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

 

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

BBB [Long Term]

Rating Explanation

Moderate degree of safety. It carry moderate credit risk.

Date

September 2012

 

 

Rating Agency Name

ICRA

Rating

A2 [Short Term]

Rating Explanation

Strong degree of safety. It carry low credit risk.

Date

September 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.

 

 

LOCATIONS

 

Registered Office :

H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai-400710, Maharashtra, India

Tel. No.:

91-22-30386600/ 30386838

Fax No.:

91-22-30385169/ 30386999

E-Mail :

paresh.rathod@relianceada.com

 

 

DIRECTORS

 

AS ON 24.09.2012

 

Name :

Mr. Rajivkumar Nandswaroop Saxena

Designation :

Director

Address :

B-186, Janta Colony, Jaipur-302004, Rajasthan, India

Date of Birth/Age :

05.08.1963

Date of Appointment :

17.03.2011

Din No.:

03466982

 

 

Name :

Mr. Narelda Venugopala Narelda Venkatarao Rao

Designation :

Director

Address :

Flat No. 301, Plot No. 58, APSEB Colony, Bhaskara Enclave, Buchirajupalem, Visakhapatnam-530027, Andhra Pradesh, India

Date of Birth/Age :

10.08.1958

Date of Appointment :

26.05.2011

Din No.:

03143364

 

 

Name :

Mr. Rambachan Bhagwan Pathak

Designation :

Director

Address :

439 K, Baidhan, Vaidhan, Tehsil Singarouli-486889, Madhya Pradesh, India

Date of Birth/Age :

02.01.1952

Date of Appointment :

26.05.2011

Din No.:

03171629

 

 

Name :

Mr. Shrikant Digambar Kulkarni

Designation :

Director

Address :

Flat No. C/43, Building No. 3, Kalpataru Estate, J V Link Road, Andheri, Mumbai-400093, Maharashtra, India

Date of Birth/Age :

30.07.1964

Date of Appointment :

12.03.2012

Din No.:

05136399

 

 

KEY EXECUTIVES

 

Name :

Mr. Umesh Subraya Mooteri

Designation :

Company Secretary

Address :

34/301, Seawoods Estate, NRI Complex, Palm Beach Road, Nerul, Navi Mumbai-400706, Maharashtra, India

Date of Birth/Age :

07.12.1952

Date of Appointment :

20.08.2010

Pan No.:

AAAPU7847F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 24.09.2012

 

Names of Shareholders

No. of Equity Shares

No. of Preferences Shares

Reliance Power Limited, India

18813698

18764200

Ramaswami Kalidas Jointly with Reliance Power Limited, India

1

--

Narelda Venugopala Narelda Venkatarao Rao Jointly with Reliance Power Limited, India

1

--

Arunachalam Venkitachalam Jointly with Reliance Power Limited, India

1

--

Nimish Chitalia Jointly with Reliance Power Limited, India

1

--

Paresh Rathod Jointly with Reliance Power Limited, India

1

--

Balasubramanian Natarajan Jointly with Reliance Power Limited, India

1

--

Suresh Nagarajan Jointly with Reliance Power Limited, India

1

--

 

 

 

TOTAL

18813705

18764200

 

AS ON 24.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Power Generation.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Not Available

 

 

Facilities :

Secured Loan

As on 31.03.2013

[Rs. in Millions]

As on 31.03.2012

[Rs. in Millions]

Long Term Borrowings

 

 

Term Loans

 

 

-          Rupee Loans From Banks

24049.842

13375.505

-          Foreign Currency Loans from Banks

46226.964

23587.698

-          Rupee Loans From Financial Institutions/Other Parties

30015.652

11598.150

-          Foreign Currency Loans From Financial Institutions/Other Parties

37081.717

8071.724

TOTAL

137374.175

56633.077

 

 

 

Banking Relations :

--

 

 

Financial Institution :

·         SBICAP Trustee Company Limited, 202, Maker Tower, ‘E’ Cuffe Parade, Colaba, Mumbai-400005, Maharashtra, India

·         Power Finance Corporation Limited, Chandralok Building, 36, Janpath, New Delhi-110001, India

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

 

 

Holding Company :

Reliance Power Limited (R Power)

 

 

Fellow Subsidiaries / Step Down Subsidiaries of Holding Company :

·         Reliance Coal Resources Private Limited (RCRL)

·         Rosa Power Supply Company Limited (RPSL)

·         Vidarbha Industries Power Limited (VIPL)

·         Rajasthan Sun Technique Energy Private Limited (RSTEPL)

·         Tata Hydro Power Private Limited (THPPL)

·         Samalkot Power Limited (SMPL)

·         Jharkhand Integrated Power Limited (JIPL)

·         Coastal Andhra Power Limited (CAPL)

 

 

Other Related Parties :

·         Reliance General Insurance Company Limited (RGIL)

·         Reliance Communications Limited (R Com)

·         Reliance Infrastructure Limited (R Infra)

·         AAA Project Ventures Private Limited (APVPL) (Upto December 19, 2012)

 

 

CAPITAL STRUCTURE

 

AS ON 24.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000000

Equity Shares

Rs.10/- each

Rs.50000.000 Millions

1000000000

Preferences Shares

Rs.10/- each

Rs.10000.000 Millions

 

TOTAL

 

Rs.60000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

18813705

Equity Shares

Rs.10/- each

Rs.188.137 Millions

18764200

Preferences Shares

Rs.10/- each

Rs.187.642 Millions

 

TOTAL

 

Rs.375.779 Millions

 

 

AS ON 31.03.2013

 

Authorized Capital :

No. of Shares

Type

Value

Amount

5000000000

Equity Shares

Rs.10/- each

Rs.50000.000 Millions

1000000000

Preferences Shares

Rs.10/- each

Rs.10000.000 Millions

 

TOTAL

 

Rs.60000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

28226755

Equity Shares

Rs.10/- each

Rs.282.267 Millions

28177250

Preferences Shares

Rs.10/- each

Rs.281.773 Millions

 

TOTAL

 

Rs.564.040 Millions

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

564.040

359.859

325.759

(b) Reserves & Surplus

56558.516

36309.553

32302.977

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

57122.556

36669.412

32628.736

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

137374.175

56633.077

14809.572

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

15466.591

9655.712

1069.449

(d) long-term provisions

281.827

11.026

3.357

Total Non-current Liabilities (3)

153122.593

66299.815

15882.378

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

0.000

0.000

0.000

(c) Other current liabilities

9157.236

14648.392

1954.957

(d) Short-term provisions

4.226

7.115

0.504

Total Current Liabilities (4)

9161.462

14655.507

1955.461

 

 

 

 

TOTAL

219406.611

117624.734

50466.575

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

17873.429

5862.067

1892.653

(ii) Intangible Assets

333.025

345.031

0.746

(iii) Capital work-in-progress

161926.054

98794.431

14267.865

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.266

(d) Long-term Loan and Advances

13009.732

10864.435

18483.458

(e) Other Non-current assets

225.132

4.695

4.305

Total Non-Current Assets

193367.372

115870.659

34649.293

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

1200.000

15313.793

(b) Inventories

1288.830

0.000

0.000

(c) Trade receivables

0.000

0.000

0.000

(d) Cash and cash equivalents

23850.426

313.064

446.650

(e) Short-term loans and advances

846.080

201.167

56.839

(f) Other current assets

53.903

39.844

0.000

Total Current Assets

26039.239

1754.075

15817.282

 

 

 

 

TOTAL

219406.611

117624.734

50466.575

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

0.000

0.000

0.000

 

 

Other Income

38.651

694.494

162.831

 

 

TOTAL                                    

38.651

694.494

162.831

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Other Expenses

0.980

57.018

37.044

 

 

TOTAL                                    

0.980

57.018

37.044

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX

37.671

637.476

125.787

 

 

 

 

 

Less

TAX                                                     

2.628

6.801

0.787

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX

35.043

630.675

125.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

39625.470

41832.220

2678.548

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

1.86

37.60

9.84

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

90.67

90.81

76.76

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.00

0.00

0.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.07

3.39

0.35

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.01

0.02

0.00

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

2.40

1.54

0.45

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.84

0.12

8.09

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

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

No

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

Yes

30]

Major Shareholders, if available

Yes

31]

PAN of Proprietor/Partner/Director, if available

No

32]

Date of Birth 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

 

 

INDEX OF CHARGES:

 

S.

No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10224515

27/06/2013 *

7,500,000,000.00

SBICAP TRUSTEE COMPANY LIMITED

202, MAKER TOWER, 'E', CUFFE PARADE, COLABA,, MUMBAI - 400005, MAHARASHTRA, INDIA

B79299384

2

10172003

27/06/2013 *

145,500,000,000.00

SBICAP TRUSTEE COMPANY LIMITED

202, MAKER TOWER, 'E', CUFFE PARADE, COLABA,, MUMBAI - 400005, MAHARASHTRA, INDIA

B79298675

 

 

GENERAL INFORMATION:

 

Subject a wholly owned subsidiary of Reliance Power Limited, has been set up to develop an Ultra Mega Power Project of 3960 MW (6X660 MW) at Sasan, Madhya Pradesh. A power purchase agreement (PPA) has been executed with 14 procurers comprising 7 states, based on which the power generated would be sold to them. The project has been allotted three captive coal blocks to meet it fuel requirements.

 

 

STATUS OF THE PROJECT:

 

The Company is implementing India's first integrated Ultra Mega Power Project of 3,960 MW (6X660MW) capacity at Sasan, District Singrauli, Madhya Pradesh ('tile Project'). The project is based on supercritical technology, which is more efficient and environment friendly. The Project also involves development of captive coal blocks viz. Moher, Moher-Amlohri extension and Chhatrasal which have been allotted for the Project.

 

The Project will supply power to Procurers (power distribution companies) in 7 states across western and northern India. The Company has already entered into Power Purchase Agreements with the Procurers.

 

The Company has achieved financial closure and tied up long-term loan facilities with Indian as well as foreign banks / financial institutions to finance the project on limited recourse basis.

 

The first unit of 660 MW of the Project has achieved commercial operation towards the end of March 2013 ahead of the Scheduled time line for its completion. This was a tremendous achievement against heavy odds and the entire Team at the Plant deserves to be congratulated for their unstinted efforts and dedication in achieving the above significant milestone.

 

Members are aware that the Sasan UMPP is an integrated unit and some of the facilities are common to all the six units of the Project. In addition, Members may note that the tariff as per the Power Purchase Agreements (PPA) entered into by the Company with the procurers is uniform across the entire project contracted capacity of 3,960 MW, being a tariff based on competitive bidding. Hence, instead of treating each Unit as a Unit of Measurement for capitalization, the entire Power Plant as a whole should be considered as a unit of measurement.

 

In view of the above, the Board has taken a considered view that notwithstanding that one of the six Units has commenced operations, it would be appropriate to capitalize the cost of fixed Assets put to use/to be used in all the six Units only upon completion of the setting up of the operations in the entire power plant of 3,960 MW culminating in the commencement of operations in all the six units. The above view of the Board has been corroborated by opinions which the Company has received from eminent firms of consultants/legal advisors. The policy adopted by the Company on this is in line with the provisions of Accounting Standards 10 (AS-10) which deals with Accounting for fixed assets.

 

Having regard to the foregoing, the costs and revenues in respect of the one unit which is in operation have been accounted for as part of capital work in progress.

 

 

FIXED ASSETS:

 

·         Freehold Land

·         Building

·         Plant and Machinery

·         Mining Properties

·         Furniture and Fixtures

·         Motor Vehicles

·         Office Equipment

·         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 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.62.62

UK Pound

1

Rs.101.06

Euro

1

Rs.84.55

 

 

INFORMATION DETAILS

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

47

 

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

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NB

                                       New Business

 

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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.