MIRA INFORM REPORT

 

 

Report Date :

27.12.2014

 

IDENTIFICATION DETAILS

 

Name :

ESDS SOFTWARE SOLUTION PRIVATE LIMITED 

 

 

Registered Office :

Plot No.B-24 and 25, Nice Industrial Area, MIDC, Satpur, Nashik – 422007, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

18.08.2005

 

 

Com. Reg. No.:

11-155433

 

 

Capital Investment / Paid-up Capital :

Rs.49.600 Millions

 

 

CIN No.:

[Company Identification No.]

U72200MH2005PTC155433

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in providing IT enabled services (web hosting services, technical support services, data center setup and consulting services) and supply of IT enabled products closely connected with the rendering of the IT enabled services.

 

 

No. of Employees :

Information denied by management

 

 

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

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a satisfactory track record.

 

The management has failed to file its financial record with government department for the year 2014.

 

As per available financial record of 2013, the rating reflects company’s established position in providing hosting, network and managed information technology infrastructure related services supported by sound operational risk profile and decent profitability margins of the company.

 

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

 

The company can be considered for business dealings 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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating = BB

Rating Explanation

Inadequate credit quality and low credit risk.

Date

November 27. 2014

 

 

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 31-03-2014.

 

 

INFORMATION DECLINED

 

Management non co-operative (91-253-6636500)

 

 

LOCATIONS

 

Registered/ Corporate Office :

Plot No.B-24 and 25, Nice Industrial Area, MIDC, Satpur, Nashik – 422007, Maharashtra, India

Tel. No.:

91-253-6636500

Mobile No.:

91-8750055110 (Mr. Ranji Singh)

Fax No.:

91-9595247247

E-Mail :

cassdhoot@gmail.com

info@host.co.in

hrm@etechsupport.net

ag2411@gmail.com

Website :

http://www.esds.co.in

 

 

Branch Offices :

Located at:

 

·         Delhi

·         Mumbai

·         Pune

·         Surat

·         Jamshedpur

 

 

DIRECTORS

 

As on 30.09.2013

 

Name :

Mr. Piyush Prakashchandra Somani 

Designation :

Director

Address :

32, Neha Bungalow Cherry Hill, Pipe Line Road, Nashik – 422013, Maharashtra, India

Date of Birth/Age :

09.06.1979

Date of Appointment :

18.08.2005

DIN No.:

02357582

 

 

Name :

Mrs. Sarla Prakashchandra Somani

Designation :

Director

Address :

32, Neha Bungalow Cherry Hill, Pipe Line Road, Nashik – 422013, Maharashtra, India

Date of Birth/Age :

03.11.1957

Date of Appointment :

18.08.2005

DIN No.:

02357805

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2013

 

Names of Shareholders

No. of Shares

% of holding

 

Piyush Prakashchandra Somani 

2480000

50.00

Sarla Prakashchandra Somani

2480000

50.00

 

 

 

Total

4960000

100.00

 

 

 

As on 30.09.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

 

 

Percentage

Directors or relatives of directors

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in providing IT enabled services (web hosting services, technical support services, data center setup and consulting services) and supply of IT enabled products closely connected with the rendering of the IT enabled services.

 

 

Products :

Not Available

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

Information denied by management

 

 

Bankers :

·         Citi Bank N. A.

Rushiraj Presidency, Plot No. 52 and 53, D’souza Colony, College Road, Nashik – 422 005, Maharashtra, India

 

·         Yes Bank Limited

9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

 

·         Canara Bank

Gangapur Road, Nashik – 422005, Maharashtra, India

 

 

Facilities :

 

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Term Loans

 

 

From bank

64.000

0.000

From financial institutions

39.232

72.498

Vehicle loans from banks and financial institutions

10.889

3.981

Short-term borrowings

 

 

Term loan from bank

0.000

15.000

Total

 

114.121

91.479

 

Note:

 

a) Term loan from bank amounting to Rs. 80.000 Millions (2012: Us. Nil) carrying interest rate of 13.5% p. a. is repayable within 20 quarterly installments. The same is secured by first charge on immovable property (comprising land and building).

 

b) Term loan from financial institution amounting to Rs. 29.932 Millions (2012: Rs.76.000 Millions) carrying interest rate of 16% (2012: 15.25%) p. a. is repayable within 4 years with the moratorium period of 3 years (2012: 120 monthly installments). Term loan from financial institution amounting to Rs. 10.500 Millions (2012: Rs. Nil) carrying interest rate of 13% p. a. is repayable within 4 years (with the moratorium period of 6 months). Both the loans above loans are secured by first charge on the assets financed (2012: secured by mortgage on landand &building)

 

c) Vehicle loans carry interest rates ranging from 11 % p.a. to 12% p. a. and are secured against hypothecation of vehicles financed under the loan, The number of monthly installments payable are between 36 to 60.

 

Auditors :

 

Name :

BBSR and Company

Chartered Accountants

Address :

703, 7th Floor, Godrej Castlemaine Next to Ruby Hall Clinic Bund Garden Road, Pune – 411001, Maharashtra, India

PAN No.:

AAKFB4397F

Tel No.:

91-20-30504000

Fax No.:

91-20-30504100

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Enterprises over which key management personnel exercise significant influence:

·         ESDS Internet Services Private Limited

·         Geore Consultant and Mining Private Limited

 

 

 

CAPITAL STRUCTURE

 

As on 30.09.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

4960000

Equity Shares

Rs.10/- each

Rs.49.600 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

49.600

0.200

0.200

(b) Reserves & Surplus

154.252

178.421

153.116

(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)

203.852

178.621

153.316

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

115.730

77.639

2.077

(b) Deferred tax liabilities (Net)

0.696

3.708

3.241

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

3.983

2.753

1.605

Total Non-current Liabilities (3)

120.409

84.100

6.923

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

15.000

0.000

(b) Trade payables

55.341

8.510

208.897

(c) Other current liabilities

60.109

39.343

18.134

(d) Short-term provisions

1.806

2.706

4.898

Total Current Liabilities (4)

117.256

65.559

231.929

 

 

 

 

TOTAL

441.517

328.280

392.168

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

162.433

147.112

139.083

(ii) Intangible Assets

7.771

9.903

0.000

(iii) Capital work-in-progress

13.360

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.215

0.090

0.090

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

87.183

32.567

23.237

(e) Other Non-current assets

4.001

2.702

0.000

Total Non-Current Assets

274.963

192.374

162.410

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

130.782

79.807

216.696

(d) Cash and cash equivalents

20.185

15.161

6.526

(e) Short-term loans and advances

11.843

40.435

6.536

(f) Other current assets

3.744

0.503

0.000

Total Current Assets

166.554

135.906

229.758

 

 

 

 

TOTAL

441.517

328.280

392.168

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

297.058

280.102

338.870

 

 

Other Income

7.476

3.152

4.224

 

 

TOTAL                                     (A)

304.534

283.254

343.094

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee benefit Expenses

95.230

71.486

50.115

 

 

Operating and other  Expenses

127.673

146.770

235.489

 

 

TOTAL                                     (B)

222.903

218.256

285.604

 

 

 

 

 

Less

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

81.631

64.998

57.490

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

16.594

4.130

2.123

 

 

 

 

 

 

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

65.036

6.868

55.367

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

27.354

22.178

17.931

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

37.682

38.690

37.436

 

 

 

 

 

Less

TAX                                                                  (H)

12.451

13.385

7.654

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

25.231

25.305

29.782

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Technical support services

135.930

113.088

94.921

 

 

Webhosting services

16.089

3.074

0.584

 

 

Sale of traded products

31.572

24.785

0.000

 

TOTAL EARNINGS

183.591

140.947

95.505

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

0.545

1.604

1.015

 

 

Traded Products

32.503

24.975

0.000

 

TOTAL IMPORTS

33.048

26.579

1.015

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.09

1265.26

1489.00

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Net Profit Margin

(PAT/Sales)

(%)

8.49

9.03

8.79

 

 

 

 

 

Operating Profit Margin

(PBDIT / Sales)

(%)

27.48

23.21

16.97

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.81

11.79

9.55

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.18

0.22

0.24

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
0.57

0.52

0.01

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.42

2.07

0.99

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

0.200

0.200

49.600

Reserves & Surplus

153.116

178.421

154.252

Net worth

153.316

178.621

203.852

 

 

 

 

long-term borrowings

2.077

77.639

115.730

Short term borrowings

0.000

15.000

0.000

Total borrowings

2.077

92.639

115.730

Debt/Equity ratio

0.014

0.519

0.568

 

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

338.870

280.102

297.058

 

 

(17.342)

6.054

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

338.870

280.102

297.058

Profit

29.782

25.305

25.231

 

8.79%

9.03%

8.49%

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

(Rs. In Millions)

Particulars

 

31.03.2013

31.03.2012

31.03.2011

Current maturities of long-term debt

25.467

12.257
9.730

 

 

 

 

Total

25.467

12.257
9.730

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

Yes

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

NOTE:

The Registered office of the company has been shifted from 10, Archana Society, Lokmanya Nagar, Nasik Road, Nasik – 422101, Maharashtra, India, to the present address w.e.f. 05.08.2009.

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

 

 

Term loan from financial institutions

1.609

1.160

 

 

 

Total

1.609

1.160

 

Note:

 

Term loan from banks and financial institutions carry interest rate ranging from 14% p.a to 18% p.a. having different repayment periods, Maturity of term loans:

(Rs. in Millions)

 

Maturity profile

 

Less than 1 year *

1-5 Year

More than 5 years

 

Secured

 

 

 

As at 31 March 2013

20.278

105.045

9.075

As at 31 March 2012

6.436

24.734

51.745

Unsecured

 

 

 

As at 31 March 2013

5.189

1.609

--

As at 31 March 2012

5.821

1.160

--

* disclosed under other current liabilities

 

 

OUTLOOK:

 

According to NASSCOM Strategic Review 2013, Global technology spend is expected to grow by 6% in 2013. Worldwide IT Services spending is expected to grow is expected to grow 4.2% in 2013 and 4.6% in 2014. The growth is fuelled both by use of IT to reduce cost structure as well as increased adoption of Cloud, Mobility, Analytics and Social Media. India continues to be the global sourcing leader. Global sourcing accounts for only a little over 10 per cent of global technology spending and this highlights India's growth potential in the context of the large and untapped market opportunity.

 

 

COMPANY OVERVIEW

 

Subject was incorporated on 18 August 2005. ESDS is engaged in providing IT enabled services (web hosting services, technical support services, data center setup and consulting services) and supply of IT enabled products closely connected with the rendering of the IT enabled services.

 

CONTINGENT LIABILITIES

 

Particulars

31.03.2013

(Rs. In Millions)

 

 

Income tax matters

0.111

 

 

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10417792

10/04/2013

10,500,000.00

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

1ST FLOOR, PINGLE COMPLEX,, OPP. KULKARNI GARDEN,
SHARANPUR ROAD, NASHIK, MAHARASHTRA - 422007, INDIA

B72616451

2

10422798

01/07/2013 *

130,000,000.00

YES BANK LIMITED

9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR.
ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA -
400018, INDIA

B79956603

3

10377479

25/09/2012

45,500,000.00

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

1ST FLOOR, PINGLE COMPLEX,, OPP. KULKARNI GARDEN,
SHARANPUR ROAD, NASHIK, MAHARASHTRA - 422007, INDIA

B58469933

4

10344210

28/03/2012

15,000,000.00

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

1st FLOOR, PRINGLE COMPLEX, OPP. KULKARNI GARDEN,
SHARANPUR ROAD, NASHIK, MAHARASHTRA - 422002, INDIA

B35800952

 

* Date of charge modification

 

 

FIXED ASSETS

 

·         Leasehold Land

·         Building

·         Furniture and Fixture

·         Computer and Data Centre Equipment

·         Office Equipment

·         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.63.63

UK Pound

1

Rs.98.97

Euro

1

Rs.77.74

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KLS

 

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

6

--PROFITABILITY 

1~10

4

--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

NO

--AFFILIATION

YES/NO

NO

--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.