MIRA INFORM REPORT

 

 

Report Date :

25.10.2013

 

IDENTIFICATION DETAILS

 

Name :

MALDEEP CATALYSTS PRIVATE LIMITED

 

 

Registered Office :

C-301,303,304, Aagam Shopping World, Near Agrawal School, Vesu – Aabhva Road, Vesu, Surat – 395007, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

04.04.1990

 

 

Com. Reg. No.:

04-013582

 

 

Capital Investment / Paid-up Capital :

Rs. 10.000 Millions

 

 

CIN No.:

[Company Identification No.]

U24119GJ1990PTC013582

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

SRTM00403E

 

 

PAN No.:

[Permanent Account No.]

AABCM00403E

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Chemicals, PVC Stabilizer, Prepaid Dryers etc.

 

 

No. of Employees :

60 (Approximately) [In Office and In Factory]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 330000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record.

 

There appears dip in profit and sales turnover of the company during financial year 2013.

 

However, general financial position of the company appears to be fair.

 

Trade relations are fair. Business is active. Payment terms are usually correct.

 

The concern can be considered for business dealing at usual trade terms and conditions.

 

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

 

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

 

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

 

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

 

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

 

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

 

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

 

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

 

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

 

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. Devang Jain

Designation :

Accounts Manager

Contact No.:

91-9825373338

Date :

24.10.2013

 

 

LOCATIONS

 

Registered Office :

C-301,303,304, Aagam Shopping World, Near Agrawal School, Vesu – Aabhva Road, Vesu, Surat – 395007, Gujarat, India

Tel. No.:

91-261-2918233

Mobile No.:

91-9825373338 (Mr. Devang Jain)

Fax No.:

91-261-2278441

E-Mail :

info@maldeepindia.com

maldeepindia@dataone.in

Website :

http://www.maldeepindia.com

 

 

DIRECTORS

 

As on: 27.05.2013

 

Name :

Mr. Mayankkumar Ambalal Patel

Designation :

Whole Time Director

Address :

C/O Al Shola Transport Company, LLC Al Quoze Industrial Area, Al Quoze Industrial Area – 4, P O Box 7350, Dubai

Date of Birth/Age :

30.10.1956

Date of Appointment :

31.03.1998

DIN No.:

00418530

 

 

Name :

Mr. Pallav Suryakantbhai Patel

Designation :

Whole Time Director

Address :

C/O Al Shola Transport Company, LLC Al Quoze Industrial Area, Al Quoze Industrial Area – 4, P O Box 7350, Dubai

Date of Birth/Age :

03.03.1980

Date of Appointment :

01.04.2008

DIN No.:

00418656

 

 

Name :

Mr. Pravinbhai Narsinghbhai Patel

Designation :

Whole Time Director

Address :

S – 77, Someshwar Enclave, Udhna Magdalla Road, Surat – 395001, Gujarat, India

Date of Birth/Age :

18.11.1946

Date of Appointment :

10.01.1992

DIN No.:

00471462

 

 

Name :

Mr. Kirtibhai Shantilal Desai

Designation :

Whole Time Director

Address :

5 – C, Dr Mansukhlal Tower, Chowpati, Surat – 395001, Gujarat, India

Date of Birth/Age :

05.11.1948

Date of Appointment :

10.01.1992

DIN No.:

00471572

 

 

Name :

Mrs. Krishnaben Pravinbhai Patel

Designation :

Managing Director

Address :

S – 77, Someshwar Enclave, Udhna Magdalla Road, Surat – 395007, Gujarat, India

Date of Birth/Age :

20.11.1952

Date of Appointment :

01.04.1999

DIN No.:

00471713

           

 

KEY EXECUTIVES

 

Name :

Mr. Devang Jain

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 27.05.2013

 

Names of Shareholders

 

No. of Shares

Malhar Patel

 

7500

Deep Desai

 

5000

Pallav Suryakantbhai Patel

 

50000

Pravinbhai Narsinghbhai Patel

 

7500

Krishnaben P. Patel

 

5000

Kirtibhai Shantilal Desai

 

8000

Sarlaben Desai

 

7000

Mayankbhai Patel

 

10000

 

 

 

Total

 

100000

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 27.05.2013

 

Category

 

Percentage

 

 

 

Directors or relatives of directors

 

100.00

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Chemicals, PVC Stabilizer, Prepaid Dryers etc.

 

 

Products :

·         Paint Driers

·         Cobalt Octoate

·         Lead Octoate

·         Manganese Octoate

·         Zirconium Octoate

·         Zinc Octoate

·         Calcium Octoate

·         Cerium Octoate

·         Barrium Octoate

·         Metal Carboxylate Stabilzers

  • Copper Naphthanate

 

 

Exports :

 

Products :
  • Chemicals
  • PVC Stabilizer
  • Prepaid Dryers

Countries :
  • Kenya
  • Sri Lanka
  • Bangladesh
  • UAE

 

 

Imports :

 

Products :

Raw Materials

Countries :
  • China
  • Japan
  • Sweden
  • Singapore

 

 

Terms :

 

Selling :

Cash/ Credit ( 30 and 90 days)

 

 

Purchasing :

Cash/ Credit ( 30 and 90 days)

 

 

GENERAL INFORMATION

 

No. of Employees :

60 (Approximately) [In Office and In Factory]

 

 

Bankers :

The Royal Bank of Scotland N.V., 4, North Avenue, Level 3, Maker Maxity, Bandra Kurla Complex, Bandra East, Mumbai - 400051, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Long term borrowings

 

 

Term loans from Royal Bank of Scotland 

5.490

4.369

Vehicle Loan from Banks

0.942

1.626

Loan from LIC of India

4.803

5.068

 

 

 

Short term borrowings

 

 

Working Capital facility from Royal Bank of Scotland 

97.931

62.707

Total

109.166

73.770

 

Note:

 

The term loans from Royal Bank of Scotland carries interest @ 12.25% to 13.25% p.a. The term loans are repayable in 36 to 48 monthly installments begining from the date of loan. The Loan is secured againt the hypothecation of Plant & Machinery and is also secured by way of equitable mortgage over the factory land and building at Plot no. 2103, Panoli Industrial Area, RS No. 468 paiki, Viii.: Umarwada, Dist: Bharuch belonging to the company. The said loans are also secured by way of personal guarantee of all the directors and corporate guarantee of P.K. Intermediates Private Limited.

 

The Vehicle Loan from banks are secured by hypothecation of the Vehicles repayable over a period of 3 years and carries interest @ 8.75% to 10% p.a. The said term loans are also secured by way of personal guarantee of the Directors.

 

The Loan from Lic of India is secured against the Life Insurance Policy of the Director.

 

The closing balances of unsecured loans are subject to confirmation however, the Directors have certified the respective balances. No interests on unsecured loan have been paid during the current year.

 

The Working Capital facility from Royal Bank of Scotland is secured by way of exclusive charge over entire current assets (Inventory and Receivables) and charge over the entire fixed assets including Plant and Machinery of the company. The said facility is further secured by way of equitable mortgage over the property at factory land and wilding at Plot No. 2101-2102, Panoii Industrial Area, RS No. 468 paiki, Vill,: Umarwada, Dist: Bharuch and Land and Building situated at Harikunj, Block No. A/9, Plot No. 25, SVP Road No. 3, Udhna, Surat belonging to the rompany. The directors of the company viz. Shri Pravinbhai N. Patel, Mrs. Krishna ben P. Patei and Shri Kirtibhai S. 5esai have also offred their personal guarantee.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

DSI and Company

Chartered Accountants

Address :

MF/14-26, Nariman Point, Shopping Centre, Near Raghuvir Bunglows, City Light Road, Surat-395007, Gujarat, India

Tel. No.:

91-261-3992929 / 3994747

Fax No.:

91-261-3053838

E-Mail :

dsi@dsla.com

PAN No.:

AAFFD4002N

 

 

Related Parties :

P. K. Intermediates Private Limited

 

 

CAPITAL STRUCTURE

 

As on: 27.05.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000

Equity Shares

Rs.100/- each

Rs. 10.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000

Equity Shares

Rs.10/- each

Rs. 10.000 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

10.000

10.000

10.000

(b) Reserves & Surplus

74.244

63.093

48.219

(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)

84.244

73.093

58.219

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

11.366

11.195

17.185

(b) Deferred tax liabilities (Net)

5.510

4.271

3.687

(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)

16.876

15.466

20.872

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

97.930

62.707

70.470

(b) Trade payables

44.511

50.618

27.581

(c) Other current liabilities

7.117

5.674

3.896

(d) Short-term provisions

6.880

9.670

7.371

Total Current Liabilities (4)

156.438

128.669

109.318

 

 

 

 

TOTAL

257.558

217.228

188.409

 

 

 

 
  1. ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

65.611

41.934

36.271

(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

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.391

5.975

9.393

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

66.002

47.909

45.664

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

56.757

45.817

41.383

(c) Trade receivables

113.495

103.189

87.746

(d) Cash and cash equivalents

5.207

3.118

5.723

(e) Short-term loans and advances

16.097

17.195

7.893

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

191.556

169.319

142.745

 

 

 

 

TOTAL

257.558

217.228

188.409

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

399.235

424.950

304.861

 

 

Other Income

0.006

0.057

4.549

 

 

TOTAL                                     (A)

399.241

425.007

309.410

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of material consumed

 

333.016

241.197

 

 

Changes in inventories of finished goods and work-in-progress

 

(1.937)

-4.525

 

 

Employee benefit expenses

 

18.076

15.484

 

 

Other expenses

 

35.823

25.911

 

 

Extraordinary items

 

0.109

0.168

 

 

TOTAL                                     (B)

377.642

385.087

278.235

 

 

 

 

 

Less

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

Including financial

39.920

31.175

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

 

13.128

9.606

 

 

 

 

 

 

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

21.599

26.792

21.569

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

2.948

2.159

2.002

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

18.651

24.633

19.567

 

 

 

 

 

Less

TAX                                                                  (H)

6.105

8.363

6.516

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

12.546

16.270

13.051

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

35.862

25.526

12.103

 

 

 

 

 

 

IMPORTS

119.980

147.010

90.507

 

 

 

 

 

 

Earnings Per Share (Rs.)

125.46

162.69

130.51

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

3.14

3.82

4.21

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

4.67

5.80

6.41

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

7.24

11.33

10.39

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.22

0.33

0.33

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.30

1.01

1.51

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.22

1.31

1.31

 

 

 

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

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

 

UNSECURED LOAN

(Rs. In Millions)

Particulars

As on

31.03.2013

As on

31.03.2012

Long term borrowings

 

 

Loan from Directors, Relatives and Shareholders

0.130

0.132

 

 

 

Total

0.130

0.132

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10390444

22/11/2012

6,200,000.00

THE ROYAL BANK OF SCOTLAND N.V.

4, NORTH AVENUE, LEVEL 3, MAKER MAXITY, BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA

B63518666

2

10278612

31/03/2011

10,000,000.00

THE ROYAL BANK OF SCOTLAND N.V.

74, SAKHAR BHAVAN, 7TH FLOOR, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

B10064517

3

10237279

22/11/2012 *

10,980,000.00

THE ROYAL BANK OF SCOTLAND N.V.

4, NORTH AVENUE, LEVEL 3, MAKER MAXITY, BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA

B63518757

4

10122926

22/11/2012 *

157,500,000.00

THE ROYAL BANK OF SCOTLAND N.V.

4, NORTH AVENUE, LEVEL 3, MAKER MAXITY, BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA

B63518559

 

* Date of charge modification

 

FIXED ASSETS

 

·         Land

·         Factory Building

·         Plant and Machinery

·         Electrical Fittings

·         Furniture and Fixture

·         Laboratories Equipment

·         Motor Car

·         Computers

·         D G Set

·         Office Equipment

·         Drainage System

·         CC TC Camera

·         Telephone / Mobile Instrument

 

 

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. 61.41

UK Pound

1

Rs. 99.52

Euro

1

Rs. 84.81

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

DPH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--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

 

45

 

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.