MIRA INFORM REPORT

 

 

Report Date :

05.02.2014

 

IDENTIFICATION DETAILS

 

Name :

ELKEM SOUTH ASIA PRIVATE LIMITED (w.e.f. 06.07.2011)

 

 

Formerly Known As :

ORKLA INDIA PRIVATE LIMITED (w.e.f. 18.01.2008)

 

ELKAM INDIA PRIVATE LIMITED (w.e.f. 18.11.1999)

 

ELKEM METALLURGY PRIVATE LIMITED

 

 

Registered Office :

307/308, B-wing, BSEL Tech Park, Sector 30 A, Vashi, Navi Mumbai – 400705, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

08.06.1987

 

 

Com. Reg. No.:

11-043668

 

 

Capital Investment / Paid-up Capital :

Rs.10.000 Millions

 

 

CIN No.:

[Company Identification No.]

U99999MH1987FTC043668

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trader of Building Material.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 2450000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having good track record.

 

Financial position of the company appears to be sound.

 

No external borrowings recorded by the company.

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good 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.

 

ECGC Country Risk Classification List – December 1, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

 

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.

LOCATIONS

 

Registered Office :

307/308, B-wing, BSEL Tech Park, Sector 30 A, Vashi, Navi Mumbai – 400705, Maharashtra, India

Tel. No.:

91-22-67761900

Fax No.:

91-22-67761999

E-Mail :

chetan@cjassociates.in

gautam@elkem.no

Website :

www.elkem.com

 

 

DIRECTORS

 

As on 20.08.2013

 

Name :

Mr. Roland Hennigfeld

Designation :

Director

Address :

Zum Galkhausener Bach 36, Langenfeld, Langenfeld, 40764, Germany

Date of Appointment :

02.03.2010

DIN No.:

03293910

 

 

Name :

Mr. Srinivasan Saranathan Iyer

Designation :

Director

Address :

Flat No 101 and 102 A 2, Shri Shankara, P L Lokhande Marg, Govandi, Mumbai- 400043, Maharashtra, India

Date of Appointment :

03.03.2011

DIN No.:

03506599

 

 

Name :

Erik Bergsmo

Designation :

Director

Address :

Room 2601, No 16, Lane 2, West Wei Fang Road, Shanghai Prc, 200120, China

Date of Appointment :

18.11.2010

DIN No.:

03557163

 

 

Name :

Jakob Pedersen

Designation :

Director

Address :

Klosterheimveien 14, Oslo 0666 Oslo

Date of Birth/Age :

30.04.1980

Date of Appointment :

26.06.2012

DIN No.:

05310175

 

 

MAJOR SHAREHOLDERS

 

As on 20.08.2013

 

Names of Shareholders

 

No. of Shares

Elkem AS, India

 

99999

S. S. S. Iyer

 

1

Total

 

100000

 

Equity Share Break up (Percentage of Total Equity)

 

As on 20.08.2013

 

Category

Percentage

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

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trader of Building Material.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Andhra Bank,  Persipolies Building, Mumbai, Maharashtra, India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Lovelock and lewes

Chartered Accountants

Address :

252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India 

PAN No.:

AABFL5878L

 

 

Holding Company :

Elkem AS, Norway

 

 

Ultimate Holding Company :

·         China National Chemical corporation (from 14th April, 2011)

·         Orkla ASA (till 14th April, 2011)

 

 

Fellow Subsidiaries :

·         Borregaard Industries Limited (till 14th April, 2011)

·         Borregaard AS Norway (till 14th April, 2011)

·         Borregaard South Aria Private Limited (till 14th April, 2011)

·         Borregaard Deutschland GMBH (till 14th April, 2011)

·         Borregaard Italia SPA (till 14th April, 2011)

·         Borregaard Lignotech USA (till 14th April, 2011)

·         Borregaard SEA PTE Limited (till 14th April, 2011)

·         Elkem Carbon China Company Limited

·         Elkern Lberia, S. L.

·         Elkem Materials Middle East

·         Elkem Metal Canada

·         Elkem International Trade (Shanghai) Company Limited

·         Bluestar Silicones Hongkong Trading Company Limited

·         Elkem Singapore Materials Pte Limited

·         Sapa Building System FZE (till 14th April, 2011)

·         Sapa Building System Nv (till 14th April, 2011)

·         Sapa Building System Private Limited (till 14th April, 2011)

·         Sapa Heat Transfer AB (till 14th April, 2011)

·         Sapa Heat Transfer Shanghai (till 14th April, 2011)

·         Sapa Others (till 14th April, 2011)

·         Sapa Profiles Asia (till 14th April, 2011)

·         Sapa Profiles India Private Limited (till 14th April, 2011)

 

 

CAPITAL STRUCTURE

 

As on 20.08.2013

 

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.100/- 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

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

10.000

10.000

10.000

(b) Reserves & Surplus

602.187

517.414

445.530

(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)

612.187

527.414

455.530

 

 

 

 

(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

3.756

3.045

3.429

(d) long-term provisions

6.568

5.422

4.637

Total Non-current Liabilities (3)

10.324

8.467

8.066

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

1.346

(b) Trade payables

165.774

153.361

430.538

(c) Other current liabilities

14.261

11.636

19.467

(d) Short-term provisions

7.394

7.151

14.248

Total Current Liabilities (4)

187.429

172.148

465.599

 

 

 

 

TOTAL

809.940

708.029

929.195

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

41.019

38.573

58.510

(ii) Intangible Assets

0.202

0.308

0.444

(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)

4.161

2.602

0.837

(d)  Long-term Loan and Advances

12.399

11.118

5.592

(e) Other Non-current assets

0.269

30.605

35.345

Total Non-Current Assets

58.050

83.206

100.728

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

262.345

248.986

345.894

(c) Trade receivables

256.592

187.753

339.475

(d) Cash and cash equivalents

199.485

163.622

97.151

(e) Short-term loans and advances

21.794

15.503

42.498

(f) Other current assets

11.674

8.959

3.449

Total Current Assets

751.890

624.823

828.467

 

 

 

 

TOTAL

809.940

708.029

929.195

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

950.719

857.273

1585.205

 

 

Other Income

17.168

11.057

23.393

 

 

TOTAL                                         (A)

967.887

868.330

1608.598

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

12.074

21.285

7.289

 

 

Purchase of Stock-in-trade

712.804

706.701

1355.680

 

 

Changes in Inventories of finished goods, work-in-progress and stock-in-trade

(9.582)

(88.762)

(156.511)

 

 

Employee Benefits Expenses

46.031

42.268

55.160

 

 

Other Expenses

76.071

86.175

118.267

 

 

TOTAL                                         (B)

837.398

767.667

1379.885

 

 

 

 

 

Less

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

130.489

100.663

228.713

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.380

2.784

1.929

 

 

 

 

 

 

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

130.109

97.879

226.784

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                     (F)

5.344

4.175

8.327

 

 

 

 

 

 

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

124.765

93.704

218.457

 

 

 

 

 

Less

TAX                                                                  (H)

39.991

32.217

74.669

 

 

 

 

 

 

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

84.774

61.487

143.788

 

 

 

 

 

 

PROFIT FROM DISCONTINUING OPERATIONS AFTER TAX

0.000

10.396

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

510.638

438.755

294.967

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

595.412

510.638

438.755

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Exports at FOB

4.715

2.112

1.770

 

 

Agency Commission

27.889

26.760

52.197

 

 

Income from services rendered

0.000

0.000

14.891

 

 

Others

0.371

0.744

2.114

 

TOTAL EARNINGS

32.975

29.616

70.972

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Components

13.129

15.609

3.413

 

 

Capital Goods

1.101

0.000

0.000

 

TOTAL IMPORTS

14.23

15.609

3.413

 

 

 

 

 

 

Earnings Per Share (Rs.)

848.74

718.84

1438.00

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

8.76

7.08

8.94

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

13.12

10.93

13.78

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

15.48

13.28

23.53

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.20

0.18

0.48

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.00

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

4.01

3.63

1.78

 

 

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

No

9]

Name of person contacted

No

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

No

24]

Banking facility details

No

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

 


COMPANY INFORMATION:

 

The company is a Private Limited company started in 1987 with 40% equity participation by Elkem AS Norway and as on date it is a 100% owned Subsidiary company of Elkem AS Norway. Elkem AS Norway is owned by China National Bluestar (Group) Company limited, which is owned by China National Chemical Corporation (80%) and Blackstone Group (20%). The company is mainly engaged in trading operations which includes import purchase from Eikem group companies an`d eventual sales in local area, marketing Elkem’s products, viz Microsilica to refractory and construction industries, Foundry alloys to Foundry industries, carbon bared products to the ferro alloy and aluminum industries and Silicon Metal to Aluminum and Automotive industries.

 

The Board of Directors at their meeting held on March 3, 2011, resolved to sell the company's Barregaard. Sapa Heat Transfer and Sapa Building System building on a going concern basis. The disposal is consequential to a global rate of a few of the business units of Orkla ASA. Accordingly, the Company had entered into a Business Transfer Agreement (BTA) for sale of the aforesaid business on a slump ale basis with effect from April 5, 2011

 

Financial Performance:

 

Financial year 2012-2013 saw a lot of challenges in the economic situation of the country. Growth has slowed down, high. Interest rates primarily to combat inflation over the last 18 months, supply constraints, political uncertainty, slow progress in reforms has all added to the slowing growth. Slow progress on making available core critical requirements for the industry like ores, coal, power, oil etc has compounded the problems. GDP growth has reduced from 6.2% to 5% in the financial year 2012-2013 and 2013-2014 forecasts are being lowered to 5.5%. Liquidity continues to be a concern for the industry and our customer and the Company is taking steps control our exposure. These developments affect the Company's growth and performance.

 

The Company imports most of the raw materials and finished goods. The volatile exchange rates and the depreciating Indian Rupee has hurt the Company where we have not been able to pass on the increased costs completely. Despite this, the Company has done well to slightly increase the volumes inspite of increased competition, economic slowdown and uncertainty in demand. The Company is doing best by offering products mix, vast portfolio of products available with added advantage of technical quality strength of products making key differentiation compared to competitors. The Company has taken steps to add Bluestar Silicone Products to the portfolio, the benefits of which will be seen in 2014-2015 onwards.

 

INDEX OF CHARGE:

 

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

90149787

06/10/2000

5,000,000.00

ANDHRA BANK 

PERSIPOLIES BUILDING, MUMBAI, Maharashtra, INDIA

-

2

90151516

16/08/2000

5,000,000.00

ANDHRA BANK

PERSIPOLIES BUILDING, MUMBAI, Maharashtra, INDIA

-

3

90151515

19/07/2000

690,000.00

ANDHRA BANK

PERSIPOLIES BUILDING, MUMBAI, Maharashtra, INDIA

-

4

90150743

22/12/1999

14,900,000.00

ANDHRA BANK

PERSIPOLIES BUILDING, MUMBAI, Maharashtra, INDIA

-

*Date of modification Charges

 

FIXED ASSETS:

 

·         Office Premises

·         Office Equipment

·         Plant and Furniture

·         Motor Vehicles

·         Electrical Fitting

·         Computer Software 

 

 

 

 

 

 

 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.69

UK Pound

1

Rs.102.97

Euro

1

Rs.84.58

 

 

INFORMATION DETAILS

 

Report Prepared by :

VNT

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

54

 

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.