MIRA INFORM REPORT

 

 

Report Date :

27.11.2013

 

IDENTIFICATION DETAILS

 

Name :

SKS POWER GENERATION (CHHATTISGARH) LIMITED

 

 

Registered Office :

501/B, Elegant Business Park, Andheri Kurla Road, J.B. Nagar, Andheri East, Mumbai – 400059, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

18.03.2008

 

 

Com. Reg. No.:

11-180231

 

 

Capital Investment / Paid-up Capital :

Rs.2182.035 Millions

 

 

CIN No.:

[Company Identification No.]

U40103MH2008PLC180231

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS63348F

 

 

PAN No.:

[Permanent Account No.]

AAMCS4282R

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Setting up the thermal power plant.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (28)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 11220000

 

 

Status :

Project under implementation

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is promoted by SKS Group and is a 51% subsidiary of SKS Ispat and Power Limited.

 

SKS Power Generation Chhattisgarh Limited (SPGCL) is a 1200MW mine mouth coal fired power project in the state of Chhattisgarh, India.

 

Management remains non-cooperative and denied to disclose any information about the subject.

 

The rating takes into consideration project implementation delay and over overruns, pending debt tie-up from lenders for project cost overrun and uncertainties associated with extension of Commercial Operation Date by the lenders to enable elongated tenure of debt  repayments.

 

Payments are reported to be unknown.

 

The subject 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.

 

 

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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

BB+ (Long Term Bank Facilities)

Rating Explanation

Have moderate risk of default.

Date

September 25, 2013

 

Rating Agency Name

CARE

Rating

A4+ (Short Term Bank Facilities)

Rating Explanation

Have minimal degree of safety. Carry very high credit risk.

Date

September 25, 2013

 

Rating Agency Name

CARE

Rating

BB (Non Convertible Debenture)

Rating Explanation

Have moderate risk of default.

Date

September 25, 2013

 

 

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 DENIED

 

Management Non-Cooperative (91-22-30807000)

 

 

LOCATIONS

 

Registered Office/ Corporate Office :

501/B, Elegant Business Park, Andheri Kurla Road, J.B. Nagar, Andheri East, Mumbai – 400059, Maharashtra, India

Tel. No.:

91-22-30807000/ 63

Fax No.:

91-22-30807070/ 7080

E-Mail :

corporateoffice@sksispat.com

Website :

http://www.sksispat.com

 

 

DIRECTORS

 

As on: 13.09.2013

 

Name :

Mr. Anil Mahabir Gupta

Designation :

Director

Address :

4th Floor, Nirmal Prabhu, Road No, 7, JVPD, Vileparle (West), Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

23.11.1968

Date of Appointment :

18.03.2008

DIN No.:

00046213

 

 

Name :

Mr. Deepak Gupta

Designation :

Director

Address :

Beside of Central Bank of India, Civil Line, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

09.01.1974

Date of Appointment :

16.04.2008

DIN No.:

00645211

 

 

Name :

Mr. Thomas Joseph Deleo

Designation :

Nominee Director

Address :

22 Carlyle Place, Hartsdale New York 10530

Date of Birth/Age :

06.04.1957

Date of Appointment :

09.08.2011

DIN No.:

03580338

 

 

Name :

Mr. Mahabirprasad Maujiram Gupta

Designation :

Director

Address :

B 29, DDA D/S Tenements, Vishal Exclave Rajouri Garden, New Delhi – 110027, India

Date of Birth/Age :

16.06.1943

Date of Appointment :

11.01.2013

DIN No.:

00552534

 

 

Name :

Mr. Rajachandra Shekhar Rao

Designation :

Whole-Time Director

Address :

Door No. 3-29-89, Ramanuja Kutem, Krishna Nagar, 1st Line, Guntur – 522006,  Andhra Pradesh, India

Date of Birth/Age :

10.08.1967

Qualification :

B. Tech (Civil)

Date of Appointment :

15.03.20013

DIN No.:

06527573

 

 

Name :

Mr. Brian Howard Kubeck

Designation :

Director

Address :

229, Ashland Road, Summit, NJ 07901

Date of Birth/Age :

27.06.1972

Date of Appointment :

13.09.2013

DIN No.:

06588832

 

 

KEY EXECUTIVES

 

Name :

Mrs. Seema Jagdish Achrekar

Designation :

Secretary

Address :

B-4, Vaibhav Society, Share Pipeline Road, Andheri (East), Mumbai – 400099, Maharashtra, India

Date of Birth/Age :

15.10.1985

Date of Appointment :

12.07.2013

PAN No.:

ARMPA4453C

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 13.09.2013

 

Names of Shareholders

 

No. of Equity Shares

SKS Ispat and Power Limited, India

 

76786994

Anil Gupta as a nominee of SKS Ispat and Power Limited, India

 

1

Ravindranath Ratho as a nominee of SKS Ispat and Power Limited, India

 

1

Nandkishor Ambade as a nominee of SKS Ispat and Power Limited, India

 

1

Nalikant Dash as a nominee of SKS Ispat and Power Limited, India

 

1

Ramesh Kuppast as a nominee of SKS Ispat and Power Limited, India

 

1

Hitesh Gandhi as a nominee of SKS Ispat and Power Limited, India

 

1

Asia Power FDI Limited, Mauritius

 

60203506

 

 

 

Total

 

136990506

 

 

Names of Shareholders

 

No. of Preference Shares

SKS Ispat and Power Limited, India

 

812130

 

 

 

Total

 

812130

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 13.09.2013

 

Category

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

43.95

Bodies corporate

 

56.05

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Setting up the thermal power plant.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

State Bank of India as Co- trustee for SBI CAPS Trustee Company Limited, Commercial Branch, 2nd Floor, Pujari Chambers, Pachpedi Naka, Raipur - 492001, Chhattisgarh, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWINGS

 

 

Term Loan

 

 

From Bank

8153.856

4900.000

 

 

 

Total

8153.856

4900.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Heritage, 3rd Floor, Near Gujarat Vidyapith, Off Ashram Road,  Ahmedabad – 380014, Gujarat, India

Tel. No.:

91-79-27582542/ 27582543

Fax No.:

91-79-27582551

PAN No.:

AABFD7919A

 

 

Holding Company :

SKS Ispat and Power Limited (SKSIPL)

 

 

Venture in respect of which the company is an associates :

Asia Power FDI Limited

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1750000000

Equity Shares

Rs.10/- each

Rs.17500.000 Millions

50000

Preference Shares

Rs.10/- each

Rs.0.500 Million

7499500

Preference Shares

Rs.1000/- each

Rs.7499.500 Millions

 

 

 

 

 

Total

 

Rs.25000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

136990506

Equity Shares

Rs.10/- each

Rs.1369.905 Millions

812130

Preference Shares

Rs.1000/- each

Rs.812.130

 

 

 

 

 

Total

 

Rs.2182.035 Millions

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

2182.035

2182.035

0.500

(b) Reserves & Surplus

623.236

632.102

(1.531)

(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)

2805.271

2814.137

(1.031)

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

10952.954

5599.098

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

536.506

52.881

1.609

(d) long-term provisions

3.093

1.671

0.000

Total Non-current Liabilities (3)

11492.553

5653.650

1.609

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

1510.542

(b) Trade payables

8.204

4.407

0.438

(c) Other current liabilities

1944.835

431.332

11.070

(d) Short-term provisions

0.278

0.193

0.000

Total Current Liabilities (4)

1953.317

435.932

1522.050

 

 

 

 

TOTAL

16251.141

8903.719

1522.628

 

 

 

 

ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

527.365

506.965

452.054

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

8006.342

1477.752

306.774

(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

0.000

(d)  Long-term Loan and Advances

6799.859

5703.729

627.517

(e) Other Non-current assets

360.908

228.385

122.346

Total Non-Current Assets

15694.474

7916.831

1508.691

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

0.000

0.000

0.000

(d) Cash and cash equivalents

443.466

890.780

0.776

(e) Short-term loans and advances

111.774

80.375

13.161

(f) Other current assets

1.427

15.733

0.000

Total Current Assets

556.667

986.888

13.937

 

 

 

 

TOTAL

16251.141

8903.719

1522.628

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

23.773

6.322

6.431

 

 

Other Income

0.000

0.000

0.000

 

 

TOTAL                                     (A)

23.773

6.322

6.431

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee Benefit Expenses

12.255

8.338

0.000

 

 

Other Expenses

20.383

15.156

3.548

 

 

TOTAL                                     (B)

32.638

23.494

3.548

 

 

 

 

 

Less

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

(8.865)

(17.172)

2.883

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.000

0.000

4.288

 

 

 

 

 

 

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

(8.865)

(17.172)

(1.405)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.000

0.000

0.000

 

 

 

 

 

 

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

(8.865)

(17.172)

(1.405)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

0.000

 

 

 

 

 

 

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

(8.865)

(17.172)

(1.405)

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(0.06)

(0.36)

(28.11)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(37.29)

(271.62)

(21.85)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(37.29)

(271.62)

(21.85)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(0.12)

(0.23)

(0.12)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.00

(0.01)

1.36

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

3.90

1.99

(1465.12)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.28

2.26

0.01

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE

 

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

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

Yes

 

 

UNSECURED LOAN

(Rs. In Millions)

Particular

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWINGS

 

 

Debentures

2799.098

699.098

 

 

 

Total

2799.098

699.098

 

CORPORATE INFORMATION

 

Subject, promoted by SKS Ispat and Power Limited (SKSIPLI Promoter), the holding company, was incorporated on March 18,2008.

 

The Company is setting up a 4 x 300 MW coal based thermal power plant (the Project) at Raigarh District in the State of Chhattisgarh in two Phases each comprise of 2 units of 300 MW each.

 

The Company has entered into a Share Subscription and Shareholders' Agreement dated March 10, 2011(as amended by Amendment Agreement dated August 02, 2011) with SKS Power Holdings Limited, SKSIPL, Anil Gupta and Asia Power FDI Limited ("Investor"), an affiliate of the Blackstone Group (SSHA), which will ensure the requisite equity for the Project.

 

A Deed of Adherence ("the Deed") has been entered into on 28th August 2012 between the Investor and Asia Power FVCI Limited (APFVCIL) in terms of which the Investor's Unfunded Commitment as on the date of the Deed has been transferred to APFVCIL. Accordingly, APFVCIL will subscribe to equity shares and Investor Compulsorily Convertible Debentures (Investor CCDs) for an aggregate consideration not exceeding the Investor's Unfunded Commitment referred to above.

 

The Company has tied up for debt funds required for the Project.

 

The Scheduled Commercial Operation Date (SCOD) for Phase-I (2x300MW) of the Project is July 01, 2014, however based on the current status of the Phase-I of the Project, the commercial operation is expected to commence by end of the year 2014. The expected cost overrun resulting fi-om delay in commencement of commercial operation will be funded by the Investors and Promoter as specified in the SSHA.

 

On August 30, 2013, the Company, the Promoters and Investors have signed an Amended and Restated Agreement (AM) to amend and restate the SSHA. The ARA will become effective from the date of the Project Lender Approval, which shall be obtained on or before the ARA Long Stop Date (i.e September 30, 2013 or such other extended date as may be agreed to in writing between the Inventors and the Promoters). Till such time that the Project Lender Approval is obtained the SSHA shall continue to be in full force and effect. If the Project Lender Approval is not obtained on or before the ARA Long Stop date the ARA shall terminate and the SSHA shall continue to remain in full force and effect. Pending Project Lender Approval of the ARA, the provisions of the SSHA have been considered in the financial statements.

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10342478

04/01/2013 *

29,900,000,000.00

State Bank of India as Co- trustee for SBI CAPS Trustee Company Limited

COMMERCIAL BRANCH, 2ND FLOOR, PUJARI CHAMBERS, PACHPEDI NAKA, RAIPUR, CHHATTISGARH - 492001, INDIA

B66728379

2

10323754

21/01/2013 *

29,900,000,000.00

SBICAP TRUSTEE COMPANY LIMITED

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

B66961913

 

* Date of charge modification

 

 

FIXED ASSETS

 

Tangible Assets

·         Land

·         Buildings

·         Furniture and Fixture

·         Vehicles

·         Office Equipment

·         Computer

 


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.62.45

UK Pound

1

Rs.100.86

Euro

1

Rs.84.50

 

 

INFORMATION DETAILS

 

Information Gathered by :

NAY

 

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

28

 

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.