MIRA INFORM REPORT

 

 

Report Date :

21.10.2013

 

IDENTIFICATION DETAILS

 

Name :

AMBADI ENTERPRISES LIMITED

 

 

Formerly Known As :

AMBADI ENTERPRISES PRIVATE LIMITED (w.e.f 14.12.1961)

 

MURUGAPPA AGENCIES PRIVATE LIMITED 

 

THE MURUGAPPA AGENCIES LIMITED 

 

 

Registered Office :

Parry House 5th Floor, No. 43 Moore Street, Chennai – 600001, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

18.11.1941

 

 

Com. Reg. No.:

18-001437

 

 

Capital Investment / Paid-up Capital :

Rs. 4.800 Millions

 

 

CIN No.:

[Company Identification No.]

U65991TN1941PLC001437

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEA00303C

 

 

PAN No.:

[Permanent Account No.]

AAACA6374J

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Home Textiles and Floor Coverings. 

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 1500000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record. There seems some dip in the profitability of the company during current year. However, networth of the company is strong. Trade relations are reported as fair. Business is active. Payments are reported to usually correct and as per commitment.

 

The company can be considered normal for business dealings at usual trade terms and condition.

 

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

 

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.

 

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. Bas Karanj

Designation :

Export Department

Contact No.:

91-44-25306857

Date :

17.10.2013

 

 

LOCATIONS

 

Registered Office :

Parry House 5th Floor, No. 43 Moore Street, Chennai – 600001, Tamilnadu, India

Tel. No.:

91-44-25306857

Fax No.:

91-44-25358114

E-Mail :

ranir@corp.murugappa.com

baskaranj@corp.murugappa.com

Website :

http://www.murugappa.com

 

 

Head Office :

554, Udyog Vihar Phase-5, Gurgaon, Haryana, India

Tel. No.:

91-124-2398037

Fax No.:

91-124-2398032

E-Mail :

sales@ambadi.murugappa.com

 

 

Branches :

Located at:

  • Gurgaon
  • Panipat
  • Bhadohi
  • Noida
  • Cannanore
  • Shertalai
  • Erode
  • Karur
  • Kannur

 

 

Factory :

Located at:

  • Panipat
  • Varanasi
  • Alleppey
  • Warangal
  • Delhi

 

 

DIRECTORS

 

As on: 15.07.2013

 

Name :

Mr. A Venkatachalam

Designation :

Director

Address :

No.3, Bishops Garden, Off. Greenways Road, Chennai – 600018, Tamilnadu, India

Date of Birth/Age :

05.09.1961

Date of Appointment :

01.10.1998

DIN No.:

00115568

 

 

Name :

Mr. Murugappan Muthiah Venkatachalam

Designation :

Chairman

Address :

New No.20, Old No.2, Valliappan Achi Road, Kotturpuram, Chennai – 600085, Tamilnadu, India

Date of Birth/Age :

24.11.1958

Date of Appointment :

05.02.2004

DIN No.:

00152619

 

 

Name :

Mr. Palainur Balakrishnan Jayakumar

Designation :

Director

Address :

5, Habibullah Avenue, 1st Street, Anderson Road, Chennai- 600006, Tamilnadu, India

Date of Birth/Age :

27.01.1935

Date of Appointment :

31.03.1992

DIN No.:

00178693

 

 

Name :

Mr. Jagadish Sahni

Designation :

Director

Address :

No.4, Nawab Habibullah Avenue, III Street, Chennai – 600006, Tamilnadu, India

Date of Birth/Age :

03.10.1933

Date of Appointment :

09.06.2004

DIN No.:

00320732

 

 

Name :

Mr. Sridhar Ganesh

Designation :

Director

Address :

New No.25, Old No.10/3, Archbishop Mathias Avenue, Raja Annamalai Puram, Chennai- 600028, Tamilnadu, India

Date of Birth/Age :

31.12.1950

Date of Appointment :

24.10.2009

DIN No.:

01681018

 

 

KEY EXECUTIVES

 

Name :

Mr. Bas Karanj

Designation :

Export Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 15.07.2013

 

Names of Shareholders

 

No. of Shares

A R Meenakshi

 

1400

M V Seetha Subbiah

 

1736

A Venkatachalam

 

25658

A Vellayan

 

8088

S Vellayan

 

26354

Meenakshi Murugappan

 

2100

V Arunachalam

 

8786

M M Muthiah

 

19768

M Ramaswamy and  L Ramaswamy

 

112

A Solaichi and L Ramaswamy

 

112

PL Seetha and L Ramaswamy

 

56

M Seetha and L Ramaswamy

 

56

Master V Narayan

 

8784

M V Murugappan

 

51316

M V Subbiah

 

24958

M V Valli Murugappan

 

1400

Lakshmi Venkatachalam

 

2100

M M Veerappan

 

19768

M V Muthiah

 

38485

M M Murugappan

 

37436

A A Alagammai

 

4200

M A Alagappan

 

35584

Arun Alagappan

 

39782

M A M Arunachalam (I)

 

51926

M A M Arunachalam (H)

 

19892

M A Alagappan

 

480

M A Alagappan

 

7750

AR Kasiviswanthan

 

231

AR Ramanathan

 

230

AR Murugappan

 

231

M V Subramaniam

 

38485

R Muthaiyah

 

2736

 

 

 

Total

 

480000

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 15.07.2013

 

Category

 

Percentage

 

 

 

Directors or relatives of directors

 

100.00

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Home Textiles and Floor Coverings. 

 

 

Exports :

 

Countries :
  • Europe
  • USA

 

 

Imports :

 

Products :
  • Raw Material

Countries :
  • China
  • Belgium

 

 

GENERAL INFORMATION

 

No. of Employees :

100 (Approximately)

 

 

Bankers :
  • HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai - 400013, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Short term borrowings

 

 

Packing and post shipment credit

104.241

81.982

 

 

 

Total

104.241

81.982

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Shanker Giri and Prabhakar

Chartered Accountants

Address :

Guhalaya, Flat B-7, No.262(Old 179), Royapettah High Road, Mylapore, Chennai – 600004, Tamilnadu, India

Tel. No.:

91-44-24992982/ 24991345

Fax No.:

91-44-24997317

PAN No.:

AAAFS9568H

 

 

Associates Companies / Firms:
  • Placon (India) Private Limited
  • Polutech Limited
  • Parry Agro Industries Limited

 

 

Subsidiary Company :
  • Parry Murray and Company, UK
  • Parry Murray and Company Furnishings and Floor Coverings (India) Private Limited

            CIN No.: U17229TN2006PTC061400

  • Thomas Dare Limited – UK
  • Parry Murray LLC - USA

 

 

CAPITAL STRUCTURE

 

As on: 15.07.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7500000

Equity Shares

Rs.10/- each

Rs. 75.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

480000

Equity Shares

Rs.10/- each

Rs. 4.800 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011
  1. EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

4.800

4.800

4.800

(b) Reserves & Surplus

370.908

354.307

291.470

(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)

375.708

359.107

296.270

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(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

3.481

2.718

5.222

Total Non-current Liabilities (3)

3.481

2.718

5.222

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

104.241

81.982

79.365

(b) Trade payables

83.197

74.445

63.470

(c) Other current liabilities

16.122

19.055

15.488

(d) Short-term provisions

10.372

18.709

15.959

Total Current Liabilities (4)

213.932

194.191

174.282

 

 

 

 

TOTAL

593.121

556.016

475.774

 

 

 

 
  1. ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

91.393

66.046

76.082

(ii) Intangible Assets

5.453

8.617

0.676

(iii) Capital work-in-progress

9.412

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

105.332

112.740

93.631

(c) Deferred tax assets (net)

17.630

0.000

0.000

(d)  Long-term Loan and Advances

3.883

3.396

3.185

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

233.103

190.799

173.574

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

24.662

62.645

22.522

(b) Inventories

110.036

96.012

129.214

(c) Trade receivables

125.074

114.299

100.909

(d) Cash and cash equivalents

49.861

14.827

15.606

(e) Short-term loans and advances

16.841

57.915

12.012

(f) Other current assets

33.544

19.519

21.937

Total Current Assets

360.018

365.217

302.200

 

 

 

 

TOTAL

593.121

556.016

475.774

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

837.106

757.915

626.939

 

 

Other Income

36.991

83.133

36.784

 

 

TOTAL                                     (A)

874.097

841.048

663.723

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of material consumed

277.851

246.149

246.571

 

 

Purchase of stock in trade

71.658

34.503

25.934

 

 

Changes in inventories

(28.629)

32.341

(25.416)

 

 

Employee benefit expenses

99.494

96.571

62.963

 

 

Other expenses

371.487

318.654

295.131

 

 

TOTAL                                     (B)

791.861

728.218

605.183

 

 

 

 

 

Less

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

82.236

112.830

58.540

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

9.707

6.638

3.766

 

 

 

 

 

 

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

72.529

106.192

54.774

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

28.047

16.898

15.937

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

44.482

89.294

38.837

 

 

 

 

 

Less

TAX                                                                  (H)

(15.097)

15.300

3.257

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

59.579

73.994

35.580

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

151.901

99.064

79.603

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

8.000

10.000

5.000

 

 

Dividend

4.800

9.600

9.600

 

 

Tax on Dividend

0.816

1.557

1.519

 

BALANCE CARRIED TO THE B/S

197.864

151.901

99.064

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of exports

711.363

659.349

536.324

 

TOTAL EARNINGS

711.363

659.349

536.324

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

24.475

4.716

2.796

 

 

Stores & Spares

2.171

0.054

0.163

 

 

Trader goods of bicycle spares

19.750

0.000

0.000

 

 

Capital Goods

0.000

1.054

0.000

 

TOTAL IMPORTS

46.396

5.824

2.959

 

 

 

 

 

 

Earnings Per Share (Rs.)

124.12

154.16

74.12

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

6.81

8.80

5.37

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

5.31

11.78

6.20

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

9.66

20.15

10.16

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.11

0.25

0.13

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.28

0.22

0.27

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.68

1.89

1.73

 

 

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)

Yes

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

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10203553

09/05/2013 *

120,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W 
, MUMBAI, MAHARASHTRA - 400013, INDIA

B78644614

2

10150028

16/03/2009

65,000,000.00

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

76, CATHEDRAL ROAD, CHENNAI, TAMIL NADU - 600086, INDIA

A58998303

3

90287633

19/12/2005 *

52,500,000.00

THE HOGLPMG AMD SHANGHAI BANKING CORPORATION LIMITED

30 RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA

-

4

80043402

24/09/2000

52,500,000.00

HONGKONG AND SHANGHAI BANKING CORPN. LIMITED

30 RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA

-

5

80043400

30/10/1996

10,000,000.00

HONGKONG SHANGHAI BANKING CCCORPN LIMITED

30 RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA

 -

 

* Date of charge modification

 

FIXED ASSETS:

 

  • Land
  • Lease Hold Land
  • Buildings
  • Plant and Machinery
  • Electrical Fittings
  • Air Conditioners
  • Office Equipments
  • Computers
  • Furniture Fittings
  • Motor Vehicles

 

 

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. 61.28

UK Pound

1

Rs. 99.02

Euro

1

Rs. 83.80

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

DPH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

7

--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

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

 

50

 

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.