MIRA INFORM REPORT

 

 

Report Date :

21.10.2013

 

IDENTIFICATION DETAILS

 

Name :

PRISM GAS DETECTION PRIVATE LIMITED (w.e.f. 14.07.2007)

 

 

Formerly Known As :

PRISM ELECTRONICS PRIVATE LIMITED

 

 

Registered Office :

213, Oshiwara Industrial Centre, New Link Road, Goregaon (West), Mumbai – 400 104, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

13.02.1987

 

 

Com. Reg. No.:

11-042549

 

 

Capital Investment / Paid-up Capital :

Rs.0.500 Million

 

 

CIN No.:

[Company Identification No.]

U31900MH1987PTC042549

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of Gas Detectors and Monitoring Systems.

 

 

No. of Employees :

40 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 14000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. The company has incurred a loss during current year. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

The company can be consider5ed for business 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

 

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

SME: SE 3B

Rating Explanation

Moderate financial strength and moderate performance capability.

Date

December 2011

 

 

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 (GENERAL DETAILS)

 

Name :

Mr. N.C. Nahar

Designation :

Accounts Manager

Contact No.:

91-22-28761387

Date :

12.10.2012

 

 

LOCATIONS

 

Registered Office :

213, Oshiwara Industrial Centre, New Link Road, Goregaon (West), Mumbai – 400 104, Maharashtra, India

Tel. No.:

91-22-28761387/ 28778974

Fax No.:

91-22-28766116/ 25255403

E-Mail :

prism@lpgsafety.com

pdsmail@pdsarafco.com

Website :

http://www.lpgsafety.com

Area :

415 sq ft

Location :

Owned

 

 

Corporate Office :

243, Oshiwara Industrial Centre, New Link Road, Goregaon (West), Mumbai - 400 104, Maharashtra, India

 

 

Factory :

13/14, RM Corner, Paud Road, Kothrud, Pune - 411 038, Maharashtra, India

Area :

2000

Location :

Owned

 

 

Branch Office :

Located at:

 

·         Delhi

 

 

DIRECTORS

 

AS ON 21.09.2013

 

Name :

Mr. Subhash Chander Kakkar

Designation :

Director

Address :

213, Oshiwara Industrial Centre, New Link Road, Goregaon (West), Mumbai – 400 104, Maharashtra, India

Date of Birth/Age :

07.12.1954

Qualification :

B. Tech

Date of Appointment :

13.02.1987

DIN No.:

00882388

 

 

Name :

Mr. Krishan Jagdish Chandra Kakkar

Designation :

Director

Address :

Z-1002, Golden Rays Shastri Nagar, Andheri (West), Mumbai – 400 053, Maharashtra, India

Date of Birth/Age :

21.11.1955

Qualification :

C.A

Date of Appointment :

13.02.1987

DIN No.:

01555141

 

 

KEY EXECUTIVES

 

Name :

Mr. N.C. Nahar

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 21.09.2013

 

Names of Shareholders

 

No. of Shares

Subhash Kakkar

7900

Kiran Kakkar

7700

Krishan Kakkar

200

Anil Kakkar and Indu Kakkar

5100

Jagdish Kakkar and Shantarani Kakkar

10050

Nirmal Kakkar and Satish Kakkar

50

Krishan Kakkar and Anu Kakkar

10000

Subhash Kakkar H.U.F.

5000

Krishan Kakkar H.U.F.

2500

Anu Kakkar

1500

Total

50000

 

AS ON 21.09.2013

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

85.00

Others

 

15.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Gas Detectors and Monitoring Systems.

 

 

Products :
  • Combustible Gas Detector
  • Gas Detector
  • Multi Gas Detector
  • Flue Gas Analyser
  • Toxic Gas Detectors
  • Hydrogen Sulfide Detector
  • Portable Gas Detector
  • Refrigerant Leak Detector
  • Gas Monitors

 

 

Exports :

 

Products :
  • Finished Goods

Countries :
  • Gulf Countries
  • USA
  • Germany

 

 

Imports :

 

Products :

Raw Materials

Countries :
  • Japan
  • Germany
  • USA

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit 

 

 

GENERAL INFORMATION

 

Suppliers :

  • New Cosmos Electricals, Japan

 

 

Customers :

End Users

 

  • HPCL
  • Tata Motors

 

 

No. of Employees :

40 (Approximately)

 

 

Bankers :
  • The Saraswat Co-Operative Bank Limited, SME Vile Parle Branch, Bholanath Co-Operative Housing Society, Subhash Road, Vile Parle (East), Mumbai-400057, Maharashtra, India
  • The Saraswat Co-Operative Bank Limited, Pratiksha Apartment, Opposite Filmistan Studio, S.V. Road, Goregaon (West), Mumbai – 400 062, Maharashtra, India
  • HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Term Loan from Banks:

 

 

HDFC Bank

1.209

0.000

Saraswat Co-Operative Bank Limited

1.370

2.281

Cash Credit Facility:

 

 

Saraswat Co-Operative Bank Limited

3.014

2.697

Total

5.593

4.978

 

Banking Relations :

--

 

 

Auditors :

 

Name :

P.D. Saraf and Company

Chartered Accountants

Address :

1103, Arcadia, 195, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91-22-30284848

Fax No.:

91-22-30284850

E-Mail :

pdsmail@pasarafco.com

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

AAAFP4494K

 

 

CAPITAL STRUCTURE

 

AS ON 21.09.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

150000

Equity Shares

Rs.10/- each

Rs.1.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

50000

Equity Shares

Rs.10/- each

Rs.0.500 Million

 

 

 

 

 

 

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

0.500

0.500

0.500

(b) Reserves & Surplus

3.019

4.456

4.407

(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)

3.519

4.956

4.907

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

7.774

6.906

8.235

(b) Deferred tax liabilities (Net)

0.335

0.906

0.855

(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)

8.109

7.812

9.090

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

3.014

2.697

2.111

(b) Trade payables

0.264

0.346

1.098

(c) Other current liabilities

3.669

4.973

5.774

(d) Short-term provisions

0.022

0.022

0.390

Total Current Liabilities (4)

6.969

8.038

9.373

 

 

 

 

TOTAL

18.597

20.806

23.370

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

11.686

12.481

13.255

(ii) Intangible Assets

0.000

0.000

0.000

(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

0.026

0.026

0.026

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

11.712

12.507

13.281

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

2.045

2.256
2.003

(c) Trade receivables

2.902

4.402
6.383

(d) Cash and cash equivalents

0.308

0.290
0.359

(e) Short-term loans and advances

1.630

1.351
1.344

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

6.885

8.299

10.089

 

 

 

 

TOTAL

18.597

20.806

23.370

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from Operations

24.559

26.836

30.891

 

 

Other Income

0.780

0.302

NA

 

 

TOTAL                                     (A)

25.339

27.138

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

8.813

9.803

NA

 

 

Employee Benefits Expenses

9.810

8.898

NA

 

 

Other Expenses

6.315

6.095

NA

 

 

TOTAL                                     (B)

24.938

24.796

NA

 

 

 

 

 

Less

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

0.401

2.342

NA

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

1.632

1.444

NA

 

 

 

 

 

 

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

(1.231)

0.898

2.162

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.777

0.773

0.589

 

 

 

 

 

 

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

(2.008)

0.125

1.573

 

 

 

 

 

Less

TAX                                                                  (H)

(0.572)

0.076

0.495

 

 

 

 

 

 

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

(1.436)

0.049

1.078

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2.956

2.907

1.829

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

1.520

2.956

2.907

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1.090

0.868

NA

 

TOTAL EARNINGS

1.090

0.868

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Materials

4.352

4.642

NA

 

TOTAL IMPORTS

4.352

4.642

NA

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(28.73)

0.097

21.56

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
(5.67)

0.18

NA

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(8.18)
0.47
5.09

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
(10.81)
0.60
6.74

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
(0.57)
0.03
0.32

 

 
 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 
3.07
1.94
2.11

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
0.99
1.03
1.08

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

Yes

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

No

17) Major suppliers

Yes

18) Major customers

Yes

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

Yes

 


 

Unsecured Loans

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

From related parties

5.195

4.625

Total

5.195

4.625

 

 

INDEX OF CHARGES:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10357704

31/05/2012

4,389,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI, MAHARASHTRA - 400013, INDIA

B40417685

2

10353499

19/04/2012

4,294,000.00

THE SARASWAT COOPERATIVE BANK LIMITED

SME VILE PARLE BRANCH, BHOLANATH CO-OPERATIVE HOUSING SOCIETY, SUBHASH ROAD, VILE PARLE EAST, MUMBAI, MAHARASHTRA
- 400057, INDIA

B38871083

3

90223217

29/01/2001

1,000,000.00

THE SARASWAT CO-OPERATIVE BANK LIMITED

GOREGAON WERST BANCH, OPPOSITE FILMISTAN. S.V. ROAD;
GOREGAON (W), MUMBAI, MAHARASHTRA, INDIA

-

4

90223206

24/11/2000

500,000.00

THE SARASWAT CO- OPERATIVE BANK LIMITED

BORIVALI WEST BANCH, K. BUILDING CHANDAVARKAR ROAD, MUMBAI, MAHARASHTRA - 400092, INDIA

-

5

90223003

18/10/2010 *

18,894,000.00

THE SARASWAT CO-OPERATIVE BANK LIMITED

SME VILE PARLE BRANCH, BHOLANATH CO-OPERATIVE HOUSING SOCIETY, SUBHASH ROAD, VILE PARLE EAST, MUMBAI, MAHARASHTRA
- 400057, INDIA

A98234362

6

90220336

26/03/1999

1,500,000.00

THE SARASWAT CO- OPERATIVE BANK LIMITED

BORIVALI WEST BANCH, K. BLDG. CHANDAVARKAR ROAD,
MUMBAI, MAHARASHTRA - 400092, INDIA

-

7

90224946

04/04/2000 *

3,900,000.00

THE SARASWAT CO- OPERATIVE BANK LIMITED

BORIVALI WEST BANCH, K. BLDG. CHANDAVARKAR ROAD,
MUMBAI, MAHARASHTRA - 400092, INDIA

-

8

90222794

17/12/2009 *

3,000,000.00

THE SARASWAT CO-OPERATIVE BANK LIMITED

SME VILE PARLE BRANCH, BHOLANATH CO-OPERATIVE HOUSING SOCIETY, SUBHASH ROAD, VILE PARLE EAST, MUMBAI, MAHARASHTRA
- 400057, INDIA

A75302232

9

90221419

01/01/1988

20,000.00

THE SARASWAT CO- OPERATIVE BANK LIMITED

TAJ BUILDING GR. FLOOR, NEAR NEW EXE. CINEMA; A.K. NAYAK MARG, BOMBAY, MAHARASHTRA - 400001, INDIA

-

 

* Date of charge modification

 

FINANCIAL RESULTS:

 

Due to prevailing recession and increase in cost of production, the working of the year suffered and affected sales as well profit adversely. Due to lack of demand the sales shows down trend at Rs.24.559 millions as compared to Rs.26.836 millions in previous year. Looking in to present environment and slowdown in overall economy the pressure on sale and profit margin in current year cannot be rules out. However company will put all its efforts to minimize the impact.

 

 

TRADE REFERENCES:

 

·         HPCL

·         Tata Motors

·         New Cosmos Electricals, Japan

 

FIXED ASSETS:

 

·         Office Premises

·         Computers

·         Furniture and Fixtures

·         Plant and machinery

·         Air Conditioner

·         Office Equipments

·         Motor Car

·         Electric Installations

 

 

 

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.99.03

Euro

1

Rs.83.80

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

SMN


 

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

2

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

30

 

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.