MIRA INFORM REPORT

 

 

Report Date :

21.11.2013

 

IDENTIFICATION DETAILS

 

Name :

UT PUMPS AND SYSTEMS PRIVATE LIMITED

 

 

Registered Office :

Room No. 107, 1st Floor, Pratap Bhawan, 5, Bahadur Shah Zafar Marg, New Delhi - 110002

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

28.05.1984

 

 

Com. Reg. No.:

55-018081

 

 

Capital Investment / Paid-up Capital :

Rs. 36.300 Millions

 

 

CIN No.:

[Company Identification No.]

U29193DL1984PTC018081

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELU02230E

 

 

PAN No.:

[Permanent Account No.]

AAACU3648R

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufactures of Single Screw, 2-Spindle Screw, 3-Spindle Screw Pumps, High Pressure Steam Jet Cleaning Machines, High Pressure Water Jetting Pump and Industrial Vacuum Cleaners etc.

 

 

No. of Employees :

150 [Approximately] 

 

 

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 740000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

There appears drastic dip in profitability of the company during the financial year 2013.

 

However, trade relations are fair. Business is active. Payment terms are slow but correct.

 

The company can be considered for business dealing 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.

 

 

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

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

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

 

Name :

Mr. Anil Gupta

Designation :

Deputy General Manager in Marketing

Contact No.:

91-129-2274861

Date :

12.11.2013

 

 

LOCATIONS

 

Registered Office :

Room No. 107, 1st Floor, Pratap Bhawan, 5, Bahadur Shah Zafar Marg, New Delhi - 110002, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

snmohta@utpsl.in

akgattani@utpsl.in

Website :

http://utpumps.tradeindia.com

http://www.utpumps.com

 

 

Factory :

14/7, Mathura Road, Faridabad - 121003, Haryana, India

Tel. No.:

91-129-2274861 / 4045831 / 4046882 / 2258588/ 3099731 / 2258590 / 3299731

Fax No.:

91-129-2275877 / 2258584

E-Mail :

info@utpsl.in

 

 

Regional Office 1 :

Unit No. C-203, 2nd Floor, C-Wing, Building No. 2, Kailash Industrial Complex, Behind Godrej Residential Colony, Parksite, Vikhroli (West), Mumbai – 400079, Maharashtra, India

Tel. No.:

91-22-32992488/ 25171490

Fax No.:

91-22-25171491

 

 

Regional Office 2 :

No.3, 7th Floor, Alsa Towers No.186 and 187, Poonamalle High Road, Kilpauk, Chennai – 600010, Tamilnadu, India

Tel. No.:

91-44-32924212/  26401850

Fax No.:

91-44-26401850

 

 

DIRECTORS

 

As on 26.06.2012

 

Name :

Mrs. Sadhana Khaitan

Designation :

Director

Address :

114 A, Central Avenue, Sainik Farm, New Delhi – 110062, India

Date of Birth/Age :

27.05.1966

Qualification :

B.A. (Hs.) (Eco.)

Experience :

24 Years

Date of Appointment :

21.10.1989

DIN No.:

00156903

 

 

Name :

Mr. Sanjay Kumar Khaitan

Designation :

Director

Address :

Kailash 114-A, Central Avenue, Sainik Farm, New Delhi – 110062, India

Date of Birth/Age :

17.12.1965

Date of Appointment :

28.08.2009

DIN No.:

00156816

 

 

Name :

Mr. Nanak Gunendra Sheth

Designation :

Director

Address :

D – 2 A/4, Vasant Vihar, New Delhi – 110057, India

Date of Birth/Age :

05.07.1941

Date of Appointment :

28.08.1996

DIN No.:

00034057

 

 

Name :

Mr. Hari Krishan Pargal

Designation :

Director

Address :

C – 158, Defence Colony, New Delhi – 110024, India

Date of Birth/Age :

11.09.1928

Date of Appointment :

03.12.1993

DIN No.:

00229495

 

 

Name :

Mr. Satya Narain Mohta

Designation :

Director

Address :

House No 1743, Sector 7 E, Faridabad – 121006, Haryana, India

Date of Birth/Age :

25.08.1953

Date of Appointment :

17.05.2005

DIN No.:

00157175

 

 

KEY EXECUTIVES

 

Name :

Mr. Anil Gupta

Designation :

Deputy General Manager in Marketing

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 26.06.2012

 

Names of Shareholders

 

No. of Shares

Sadhana Sanjaykumar Khaitan

 

1815000

Sanjay Kumar Tej Narayan Khaitan

 

1815000

Total

 

3630000

 

As on 26.06.2012

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Directors or relatives of Directors

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufactures of Single Screw, 2-Spindle Screw, 3-Spindle Screw Pumps, High Pressure Steam Jet Cleaning Machines, High Pressure Water Jetting Pump and Industrial Vacuum Cleaners etc.

 

 

Products :

ITC Code

Product Descriptions

84131100.10

Power Driven Pumps

1243000

High Pressure Steamjet Cleaning Machines

3562

High Pressure Water Jetting Pump

 

 

Terms :

 

Selling :

Cash / Credit

 

 

Purchasing :

Cash / Credit

 

 

GENERAL INFORMATION

 

No. of Employees :

150 [Approximately] 

 

 

Bankers :

Allahabad Bank, Govind Bhawan, NIT, Near Neelam Chowk, Faridabad - 121001, Haryana, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWINGS

 

 

Term Loans - From Bank

7.999

15.902

SHORT TERM BORROWINGS

 

 

From Allahabad Bank

Cash Credit Limits

15.649

17.721

Total

23.648

33.623

 

Cash Credit Limits is secured by hypothecation by way of first charge on Stocks, Book Debts and all other current assets of the Company both present and future and also secured by equitable mortgage by way of deposit of title deed of Factory Land and Building situated at 14/7, Mathura Road, Faridabad.

 

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

Gupta Gattani and Company

Chartered Accountants

Address :

Room No. 107, Pratap Bhawan, 5 Bahadur Shah Zafar Marg, New Delhi – 110002, India

Tel. No.:

91-11-23753699 / 41523699

E-Mail :

gattani_jain@airtelmail.in

gattani_jain@bol.net.in 

PAN No.:

AAEFG1742M

 

 

Enterprises over which KMP have significant influence

·         Usha Hydro Dynamics Limited

·         Sanman Gems Private Limited

·         Debikay Investment Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3680000

Equity Shares

Rs. 10/- each

Rs. 36.800 Millions

2000

Preference Shares

Rs. 100/- each

Rs. 0.200 Million

 

Total

 

Rs. 37.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3630000

Equity Shares

Rs. 10/- each

Rs.36.300 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

36.300

36.300

36.300

(b) Reserves & Surplus

149.947

142.784

128.994

(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)

186.247

179.084

165.294

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

8.167

16.141

12.339

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

8.167

16.141

12.339

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

15.649

17.721

21.661

(b) Trade payables

37.616

62.514

44.257

(c) Other current liabilities

29.945

33.612

27.633

(d) Short-term provisions

9.709

30.455

12.688

Total Current Liabilities (4)

92.919

144.302

106.239

 

 

 

 

TOTAL

287.333

339.527

283.872

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

79.889

87.156

64.453

(ii) Intangible Assets

2.142

2.407

3.015

(iii) Capital work-in-progress

0.368

0.349

0.000

(iv) Intangible assets under development

0.000

0.231

0.000

(b) Non-current Investments

9.680

9.680

9.367

(c) Deferred tax assets (net)

1.049

0.230

0.279

(d)  Long-term Loan and Advances

0.363

0.365

0.379

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

93.491

100.418

77.493

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

45.260

58.778

62.596

(c) Trade receivables

98.689

120.158

88.847

(d) Cash and cash equivalents

32.910

33.332

31.157

(e) Short-term loans and advances

16.983

26.841

23.779

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

193.842

239.109

206.379

 

 

 

 

TOTAL

287.333

339.527

283.872

 


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

267.587

321.437

246.353

 

 

Other Income

2.807

3.038

1.558

 

 

TOTAL                                     (A)

270.394

324.475

247.911

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

125.759

150.919

114.379

 

 

Changes in inventories of finished goods and work-inprogress

(4.786)

4.156

(0.669)

 

 

Employee benefits expense

69.389

65.001

58.304

 

 

Other expenses

49.591

45.510

44.053

 

 

TOTAL                                     (B)

239.953

265.586

216.067

 

 

 

 

 

Less

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

30.441

58.889

31.844

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

5.068

6.393

4.263

 

 

 

 

 

 

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

25.373

52.496

27.581

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

14.658

13.281

8.845

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

10.715

39.215

18.736

 

 

 

 

 

Less

TAX                                                                  (H)

3.551

12.768

6.480

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

7.164

26.447

12.256

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

137.917

126.772

114.516

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

2.645

0.000

 

 

Dividend

0.000

10.890

0.000

 

 

Tax on Dividend

0.000

1.767

0.000

 

BALANCE CARRIED TO THE B/S

145.081

137.917

126.772

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Export

6.813

5.944

4.891

 

 

Commission

0.000

0.248

0.000

 

TOTAL EARNINGS

6.813

6.192

4.891

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

20.290

16.901

19.684

 

 

Capital Goods

4.031

16.510

16.982

 

TOTAL IMPORTS

24.321

33.411

36.666

 

 

 

 

 

 

Earnings Per Share (Rs.)

1.97

7.29

3.38

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

2.65

8.15

4.94

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

4.00

12.20

7.61

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.88

11.92

6.83

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.22

0.11

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.13

0.19

0.21

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.09

1.66

1.94

 

 

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

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)

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

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

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 “Kailash” 114-A, Central Avenue, Sainik Farm, New Delhi - 110062, India to the present address w.e.f. 01.02.2011.

 

 

CORPORATE INFORMATION

 

Subject is a private limited company and incorporated under the Companies Act, 1956 with the Registrar of Company NCT of Delhi and Haryana on 2nd May, 1984. Company manufactures Single Screw, 2-Spindle Screw, 3-Spindle Screw Pumps, High Pressure Steam Jet Cleaning Machines, High Pressure Water Jetting Pump and Industrial Vacuum Cleaners etc.

 

 

OPERATIONS

 

In the year, the Company has recorded gross turnover/income to Rs.270.394 Millions which is 17% decreased as compared to Rs.324.475 Millions in the previous year. The net profit before tax has also decreased to Rs.10.715 Millions as compared to Rs.39.215 Millions in the previous year.

 

The Company is making continuous efforts towards selling of complete systems to suit the customer requirements and expanding its product range, increasing customer base, indigenisation and cost reduction.

 

UNSECURED LOAN

Rs. In Millions

Particular

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWINGS

 

 

Vehicle Loans

0.168

0.239

Total

0.168

0.239

 

 

 

CONTINGENT LIABILITIES:

(Rs. in millions)

i) Claims against the Company not acknowledged as debts :

31.03.2013

31.03.2012

Income Tax for Assessment Year 2005-06 (net of payment)

--

0.049

Income Tax for Assessment Year 2007-08

--

0.098

Sales Tax Demand for the year 2008-09

--

1.102

 

 

 

ii) Outstanding Bank Guarantees and Letters of Credit  (Margin Money with Bank Rs.380.000 Millions previous year Rs.466.400 Millions)

18.307

16.410

 

 

 

iii) Estimated amount of contracts remaining to be executed on

capital account and not provided for (net of advances)

--

0.061

 

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

 

Charge Holder

Address

Service Request Number (SRN)

1

80026163

13/05/2011 *

71,995,000.00

ALLAHABAD BANK

GOVIND BHAWAN, NIT, NEAR NEELAM CHOWK, FARIDABAD, 
HARYANA - 121001, INDIA

B12968269

 

* Date of charge modification

 

 

FIXED ASSETS

 

·         Land – Free hold

·         Buildings

·         Plant and Machinery

·         Electrical Installation

·         Tube Well

·         Furniture and Fixtures

·         Office Equipments

·         Motor Car

 


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.62.56

UK Pound

1

Rs.100.77

Euro

1

Rs.84.71

 

 

INFORMATION DETAILS

 

Information Gathered by :

NAY

 

 

Report Prepared by :

NTH

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--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

DEFAULTER

 

 

--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.