MIRA INFORM REPORT

 

 

Report Date :

01.10.2013

 

IDENTIFICATION DETAILS

 

Name :

NEXT RADIO LIMITED (w.e.f.19.04.2013)

 

 

Formerly Known As :

RADIO ONE LIMITED

RADIO MID-DAY WEST (INDIA) PRIVATE LIMITED

 

 

Registered Office :

Peninsula Centre, Dr. S S Rao Road, Parel East, Mumbai – 400012, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

14.10.1999

 

 

Com. Reg. No.:

11-122233

 

 

Capital Investment / Paid-up Capital :

Rs.1592.638 Millions

 

 

CIN No.:

[Company Identification No.]

U32201MH1999PLC122233

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

FM Radio Broadcasting Operation.

 

 

No. of Employees :

130 (Approximately)

 


 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 3200000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow 

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record.

 

There appear accumulated losses recorded by the company during financial year 2013.

 

Trade relations are reported to be fair. Business is active. Payment terms are reported to be slow.

 

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.

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term bank facilities : B

Rating Explanation

Risk prone-credit quality very high credit risk.

Date

31 July 2013

 

Rating Agency Name

CRISIL

Rating

Short term bank facilities : A4

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

31 July 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 PARTED BY

 

Name :

Mr. Shailesh

Designation :

Account Department

Contact No.:

91-22-67527033

Date :

30.09.2013

 

 

LOCATIONS

 

Registered Office :

Peninsula Centre, Dr. S S Rao Road, Parel East, Mumbai – 400012, Maharashtra

Tel. No.:

91-22-67527033/67015700

Fax No.:

91-22-67015701

E-Mail :

manoj.gujaran@radioone.in

Location :

Owned

 


 

DIRECTORS

 

As on 25.06.2012

 

Name :

Mr. Vineet Singh Hukmani

Designation :

Managing director

Address :

V-407, Mahagun Morpheus, E-4, Sector – 50, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

25.10.1966

Qualification:

BE in Electronics and M.B.A in Marketing

Date of Appointment :

30.06.2009

PAN No.:

ABPPH2395K

DIN No.:

02514684

 

 

Name :

Mr. Adille Jehangir Sumariwalla

Designation :

Director

Address :

C-18, Goderaj Baug, Off Nepen Sea Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

01.01.1958

Qualification:

Masters degree in Commerce (Management), and Executive MBA

Date of Appointment :

08.09.2011

DIN No.:

00045855

 

 

Name :

Mr. Dilip Cherian

Designation :

Director

Address :

A-20, First Floor, Nizamuddin East, New Delhi – 110013, India

Date of Birth/Age :

10.04.1956

Qualification:

MA in Economics

Date of Appointment :

19.07.2010

DIN No.:

00322763

 

 

Name :

Mr. Preet Kamal Dhupar

Designation :

Director

Address :

1103, Tower 2, Palms, South City 1, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

05.03.1968

Date of Appointment :

08.09.2011

DIN No.:

00534287

 

 

KEY EXECUTIVES

 

Name :

Mr. Shailesh

Designation :

Account Department

 

 

Name :

Mr. Pravin Karambelkar

Designation :

Secretary

Address :

14/525, Abhinav Sahyadri Society, D.N Nagar, Andheri ( West) , Mumbai – 400053, Maharashtra, India

Date of Birth/Age :

09.06.1980

Date of Appointment :

01.08.2011

PAN No.:

ASIPK9689D

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 25.06.2012

 

Names of Shareholders (Equity Shares)

 

No. of Shares

Next Mediaworks Limited, India

 

84376923

Abdul Aziz Khatri as nominee of Next Mediaworks Limited, India

 

1

Manajit Ghoshal as nominee of Next Mediaworks Limited, India

 

1

Hari Mathur as nominee of Next Mediaworks Limited, India

 

1

Vidya Shembekar as nominee of Next Mediaworks Limited, India

 

1

BBC World wide Holding B.V

 

24287982

Rare Enterprises

 

5000000

Rekesh Jhunjhunwala

 

5000000

Axis Bank Limited, India

 

2775000

Anand Sutaria as nominee of Next Mediaworks Limited, India

 

1

 

 

 

Total

 

121439910

 

 

Names of Shareholders (Preference Shares)

 

No. of Shares

Next Mediaworks Limited, India

 

25770000

 

 

 

Total

 

25770000

 

As on 25.07.2012

 

Names of Allottees (Equity Shares)

 

No. of Shares

Next Mediaworks Limited, India

 

12053847

 

 

 

Total

 

12053847

 

Equity Share Break up (Percentage of Total Equity)

 

As on 25.06.2012

 

Category

Percentage

Nationalised or other banks

2.29

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

20.00

Bodies corporate

69.48

Other top fifty shareholders

8.23

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

FM Radio Broadcasting Operation.

 

 

Products / Services:

Item Code No.

Product Description

9973

F M Radio Broadcasting operation, generates revenue by running advertising spots for various clients

 

 

Terms :

 

Purchasing :

Depend

 

 

GENERAL INFORMATION

 

Customers :

Advertising Company

 

 

No. of Employees :

130 (Approximately)

 

 

Bankers :

  • Dombivli Nagari Sahakari Bank Limited, Dadar Branch, Casa Maria Bldg., Plot No.797, Vijay, Manjarekar Path Near Portuguese Church, Gokhale Road, Mumbai - 400028, Maharashtra, India
  • The Bank Of Baroda Limited, Tardeo Branch, Everest Building, 156-D, J. Dadajee Road, Mumbai - 400034, Maharashtra, India

 

 

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Rupee term loans from banks

(Term loans are secured against

movable and immovable assets of

the company, present and future,

having pari-passu charge on such

assets of the company and further)

86.239

55.000

Short-term borrowings

 

 

Other loans and advances, others

(Cash Credit facilities are secured against hypothecation of Book Debts and further secured by

pari-passu charge on movable and

immovable assets of the company,

present)

39.561

61.445

Total

125.800

116.445

 

 

 

Banking Relations :

 

 

 

Auditors :

 

Name :

Haribhakti and Company

Chartered Accountants

Address :

42 Free Press House, 4th Floor , 215 Nariman Point, Mumbai – 400021, Maharashtra, India

7PAN N Income-tax PAN of auditor or auditor's firm :

AAAFH2010F

 

 

Holding Company:

  • Next Mediaworks Limited, India

CIN: L22100MH1981PLC024052

 

 

Fellow Subsidiaries:

  • One Audio Limited
  • Digital One Private Limited
  • Next Outdoor Limited

 

 

Under control of Management

  • Next Publishing Services
  • Private Limited
  • Mid-Day Exports Private Limited
  • Inquilab offset printers Limited
  • Ferari Investments and
  • Trading Company Private Limited
  • Meridian Holding and Leasing Company Private Limited
  • MC Media Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

138930000

Equity Shares

Rs.10/- each

Rs. 1389.300 Millions

25770000

Preference Shares

Rs.10/- each

Rs. 257.700 Millions

 

 

 

 

 

Total

 

Rs. 1647.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

133493757

Equity Shares

Rs.10/- each

Rs. 1334.938 Millions

25770000

Preference Shares

Rs.10/- each

Rs. 257.700 Millions

 

 

 

 

 

Total

 

Rs. 1592.638 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

1592.638

1472.099

1472.099

(b) Reserves & Surplus

(784.205)

(778.769)

(648.599)

(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)

808.433

693.330

823.500

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

120.969

195.409

256.409

(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

2.230

2.170

1.934

Total Non-current Liabilities (3)

123.199

197.579

258.343

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

59.561

97.945

56.850

(b) Trade payables

63.734

43.802

98.860

(c) Other current liabilities

142.174

268.017

216.628

(d) Short-term provisions

0.473

0.247

0.448

Total Current Liabilities (4)

265.942

410.011

372.786

 

 

 

 

TOTAL

1197.574

1300.920

1454.629

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

149.149

163.380

148.455

(ii) Intangible Assets

325.087

422.545

520.721

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.00

(c) Deferred tax assets (net)

424.339

451.391

438.108

(d)  Long-term Loan and Advances

61.239

70.061

110.988

(e) Other Non-current assets

20.064

27.521

27.660

Total Non-Current Assets

979.878

1134.898

1245.932

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

173.050

120.150

154.482

(d) Cash and cash equivalents

6.154

6.893

21.284

(e) Short-term loans and advances

35.981

31.085

27.840

(f) Other current assets

2.511

7.894

5.091

Total Current Assets

217.696

166.022

208.697

 

 

 

 

TOTAL

1197.574

1300.920

1454.629


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

512.591

435.301

441.366

 

 

Other Income

0.000

0.000

0.000

 

 

TOTAL                                     (A)

512.591

435.301

441.366

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee benefit expense

106.475

111.301

94.231

 

 

Other expenses

221.914

321.415

306.542

 

 

Prior period items

3.031

4.269

0.000

 

 

Exceptional items

38.543

(38.543)

(93.310)

 

 

TOTAL                                     (B)

369.963

398.442

307.463

 

 

 

 

 

Less

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

142.628

36.859

133.903

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

57.069

63.360

68.753

 

 

 

 

 

 

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

85.559

(26.501)

65.150

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

121.199

116.952

115.950

 

 

 

 

 

 

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

(35.640)

(143.453)

(50.800)

 

 

 

 

 

Less

TAX                                                                  (H)

27.052

(13.283)

10.321

 

 

 

 

 

 

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

(62.692)

(130.170)

(61.121)

 

 

 

 

 

 

Earnings / (loss) Per Share (Rs.)

(0.171)

(1.32)

(0.83)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(12.23)

(29.90)

(13.85)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(6.95)

(32.95)

(11.51)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(4.61)

(16.89)

(5.00)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.04)

(0.21)

(0.06)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.22

0.42

0.38

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.82

0.40

0.56

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

 

Particulars

31.03.2013

31.03.2012

31.03.2011

 

(Rs. In Millions)

Current maturities of long-term debt

NA

0.000

0.000

 

 

 

 

Total

NA

0.000

0.000

 

 

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

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

BUSINESS OPERATIONS:

 

All the 7 (seven) stations of the Company across the country were operational during the year as per the Licence granted by the Ministry of Information and Broadcasting. During the year management with the objective of making the operations to profitability, decided to change the programming strategy for Mumbai and Delhi.

 

The Government has announced Phase III of the FM radio licensing policy. This will extend FM radio services to 294 new cities and offers an opportunity to the Company to expand its broadcasting network.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Intercorporate borrowings

34.730

140.409

Short-term borrowings

 

 

Intercorporate borrowings

20.000

36.500

Total

54.730

176.909

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10413745

06/03/2013

60,000,000.00

DOMBIVLI NAGARI SAHAKARI BANK LIMITED

DADAR BRANCH, CASA MARIA BLDG., PLOT NO.797, VIJAY, MANJAREKAR PATH NR. PORTUGUESE CHURCH,GOKHALE RD, MUMBAI, MAHARASHTRA - 400028, INDIA

B71428569

2

10259814

26/11/2010

75,000,000.00

AXIS BANK LIMITED

201, GROUND FLOOR, "ATLANTA", NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

B02456572

3

10138594

12/07/2012 *

57,200,000.00

BANK OF BARODA

F-4, EVEREST BUILDING, TARDEO, MUMBAI, MAHARASHTRA - 400034, INDIA

B44362325

4

80006426

28/05/2009 *

550,000,000.00

AXIS BANK LIMITED

209, ATLANTA BUILDING, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

A63859656

 

Note: * Date of charge modification

 

FIXED ASSETS

 

Tangible assets

 

  • Buildings
  • Land
  • Office building
  • Furniture and fixtures
  • Office equipment
  • Computer equipments
  • Other equipments

 

Intangible assets

 

  • 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.62.78

UK Pound

1

Rs.101.42

Euro

1

Rs.84.67

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

KVT

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--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

 

26

 

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.