MIRA INFORM REPORT

 

 

Report Date :

06.02.2014

 

IDENTIFICATION DETAILS

 

Name :

NIVO CONTROLS PRIVATE LIMITED

 

 

Registered Office :

8, Mohatta Bhavan, Off Dr. E Moses Road, Worli, Mumbai - 400018, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.01.1980

 

 

Com. Reg. No.:

11-022065

 

 

Capital Investment / Paid-up Capital :

Rs. 0.583 Million

 

 

CIN No.:

[Company Identification No.]

U99999MH1980PTC022065

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of Tank Gauging and Flow Measuring Instruments.

 

 

No. of Employees :

80 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (31)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 85000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company having moderate track record.

 

Profit margin of the company appears to be low during 2013.

 

However, trade relations are fair. Business is active. Payment terms are reported as slow but correct.

 

The company can be considered for business dealings 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.

 

 

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 on providing 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.

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Ulhas

Designation :

Export Department

Contact No.:

91-731-4081300

Date :

05.02.2014

 

 

LOCATIONS

 

Registered Office :

8, Mohatta Bhavan, Off Dr. E Moses Road, Worli, Mumbai - 400018, Maharashtra, India

Tel. No.:

91-22-28470728

Fax No.:

91-22-28470763

E-Mail :

sadanis@vsnl.net

nivocontrols@nivocontrols.com

Website :

www.nivocontrols.com

Location :

Rented

 

 

Factory :

104-115, Electronics Complex, Indore – 452010, Madhya Pradesh, India

Tel. No.:

91-731-4081300/ 2553248

Fax No.:

91-731-2550075

E-Mail :

info@nivocontrols.com

Location :

Rented

 

 

DIRECTORS

 

AS ON 30.09.2013

 

Name :

Mr. Arun Bhagwandas Toshniwal

Designation :

Director

Address :

Ishwar Bhavan, A. B. Road, Churchgate, Mumbai – 400020, Maharashtra, India

Date of Birth/Age :

29.08.1943

Date of Appointment :

01.01.1980

DIN No.:

00144662

 

 

Name :

Mr. Praveen Toshniwal

Designation :

Director

Address :

3, Dr. Roshan Singh, Bhandari Marg, Indore – 452003, Madhya Pradesh, India

Date of Birth/Age :

14.08.1953

Date of Appointment :

01.01.1980

DIN No.:

00474878

 

 

Name :

Mr. Nitin Ramchandra Tamhane

Designation :

Director

Address :

101, Ajay Apartment, 16 Hansraj Lane, Byculla, Mumbai – 400027, Maharashtra, India

Date of Birth/Age :

18.11.1953

Date of Appointment :

09.07.2009

DIN No.:

02608346

 

 

KEY EXECUTIVES

 

Name :

Mr. Ulhas

Designation :

Export Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2013

 

Names of Shareholders

 

No. of Shares

 

Kamla Toshniwal

 

350

Madhulika Toshniwal

 

956

Praveen Toshniwal

 

1820

Khushagra Toshniwal

 

282

Varun Toshniwal

 

275

Nivo Holding Private Limited, India

 

2150

 

 

 

Total

 

 

5833

 

 

AS ON 30.09.2013

 

Equity Share Breakup

Percentage of Holding

Category

 

Bodies corporate

37.00

Directors or relatives of directors

63.00

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Tank Gauging and Flow Measuring Instruments.

 

 

Exports :

 

Products :

Finished Goods

Countries :

Ř       Thailand

Ř       Italy

Ř       Netherlands

Ř       USA

 

 

Imports :

 

Products :

Raw Material

Countries :

Ř                   UK

Ř                   USA

Ř                   Singapore

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash, Credit and Depend

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

80 (Approximately)

 

 

Bankers :

Ř       State Bank of India

SME Branch, AIMO building, Pologround, Indore - 452015, Madhya Pradesh, India

 

Ř       ICICI Bank Limited

 

 

Facilities :

 

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Term loan

 

 

From Madhya Pradesh Financial Corporation

Repayable in 12 Quarterly installations, last installment falling due on June 2016. Interest rate as at 31.03.2013 – 14.252% p.a.

2.478

0.000

SHORT TERM BORROWINGS

 

 

Working Capital Loan

From State Bank of India

(Secured by way of hypothecation of present and future stock of raw material, stock in process, finished goods, stores and spares and book debts and second charge on fixed assets of the company. Loan is further secured by personal by personal guarantee of one of the Director. The cash credit is repayable on demand and carries interest @ 12.25% to 14.50%p.a.)

16.213

14.828

 

 

 

Total

 

18.691

14.828

 

 

 

 

 

Banking Relations :

--

 

 

Financial Institution :

Ř       Madhya Pradesh Financial Corporation

A.B. Road, Indore - 452001, Madhya Pradesh, India

 

 

Auditors :

 

Name :

H.N. Jhavar and Company

Chartered Accountants

Address :

203, Sapphlre House, 9, Shah Nagar, Indore – 452001, Madhya Pradesh, India

Tel. No.:

91-731-2760325

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

AAAFH9839C

 

 

Companies over which the Directors have significant influences or control :

Ř       Toshbro Controls Private Limited

Ř       Nivo Instruments Private Limited

Ř       Nivo Holdings Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10,000

Equity Shares

Rs. 100/- each

Rs. 1.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5,833

Equity Shares

Rs. 100/- each

Rs. 0.583 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

0.583

0.583

0.583

(b) Reserves & Surplus

20.697

20.000

19.152

(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)

21.280

20.583

19.735

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

29.303

25.685

18.877

(b) Deferred tax liabilities (Net)

1.054

1.336

1.465

(c) Other long term liabilities

0.443

0.300

0.782

(d) long-term provisions

0.867

0.698

1.669

Total Non-current Liabilities (3)

31.667

28.019

22.793

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

19.570

17.903

19.372

(b) Trade payables

15.698

8.467

15.157

(c) Other current liabilities

9.910

10.961

16.982

(d) Short-term provisions

3.744

3.728

3.797

Total Current Liabilities (4)

48.922

41.059

55.308

 

 

 

 

TOTAL

101.869

89.661

97.836

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

12.161

12.891

12.368

(ii) Intangible Assets

1.039

0.918

0.943

(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

0.009

0.009

0.009

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.333

0.180

0.180

(e) Other Non-current assets

3.171

3.848

4.639

Total Non-Current Assets

16.713

17.846

18.139

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

44.211

41.972

34.311

(c) Trade receivables

35.151

21.937

38.960

(d) Cash and cash equivalents

2.616

2.612

1.653

(e) Short-term loans and advances

0.475

0.980

1.004

(f) Other current assets

2.703

4.314

3.769

Total Current Assets

85.156

71.815

79.697

 

 

 

 

TOTAL

101.869

89.661

97.836

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

128.166

112.561

108.025

 

 

Other Income

0.318

0.496

0.345

 

 

TOTAL                                    

128.484

113.057

108.370

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

64.341

56.966

47.487

 

 

(Increase) in inventories of finished goods work-in-progress and stock-in-trade

(5.235)

(5.222)

(0.005)

 

 

Employee benefits expenses

24.950

24.267

23.035

 

 

Other Expenses

34.351

27.484

27.855

 

 

TOTAL                        

118.407

103.495

98.372

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

10.077

9.562

9.998

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

5.467

5.482

4.386

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

4.610

4.080

5.612

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

3.112

2.806

2.736

 

 

 

 

 

 

PROFIT BEFORE TAX

1.498

1.274

2.876

 

 

 

 

 

Less

TAX                                                                 

0.599

0.222

0.736

 

 

 

 

 

 

PROFIT AFTER TAX

0.899

1.052

2.140

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

7.044

6.320

4.633

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.100

0.125

0.250

 

 

Dividend

0.175

0.175

0.175

 

 

Tax on Dividend

0.028

0.028

0.028

 

BALANCE CARRIED TO THE B/S

7.640

7.044

6.320

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export (FOB Value)

9.543

10.163

6.902

 

 

 

 

 

 

CIF VALUE OF IMPORTS

20.805

14.029

12.012

 

 

 

 

 

 

Earnings Per Share (Rs.)

154.25

180.35

366.86

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

0.70

0.93

1.97

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

1.17

1.13

2.66

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.47

1.42

2.94

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.07

0.06

0.15

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

2.30

2.12

1.94

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.74

1.75

1.44

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

CURRENT MATURITIES OF LONG TERM DEBT

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

 

 

 

 

Current Maturities of Long term debt

1.919

4.515

4.310

 

 

 

 

 

 

Sr. No.

Check List by Info Agents

Available in Report

(Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

No

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10433910

01/05/2013

13,000,000.00

MADHYA PRADESH FINANCIAL CORPORATION

A.B. ROAD, INDORE - 452001, MADHYA PRADESH, INDIA

B78312998

2

10213380

25/02/2010

10,000,000.00

MADHYA PRADESH FINANCIAL CORPORATION

FINANCE HOUSE, A. B. ROAD, INDORE - 452001, MADHYA PRADESH, INDIA

A83632158

3

10110418

18/01/2008

5,000,000.00

MADHYA PRADESH FINANCIAL CORPORATION

FINANCE HOUSE, A. B. ROAD, INDORE - 452001, MADHYA PRADESH, INDIA

A40465080

4

90231635

24/09/2008 *

21,500,000.00

STATE BANK OF INDIA

SME BRANCH, AIMO BUILDING, POLOGROUND, INDORE - 452015, MADHYA PRADESH, INDIA

A60375599

 

* Date of charge modification

 

 

UNSECURED LOANS

 

UNSECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Loans from related parties

From Directors

9.823

9.189

From Shareholders

0.380

0.317

Vehicle loans from State Bank of India

SBI Car (AVO) Loan

(Repayable in 60 equal monthly installations, last installment falling due on Feb 2015. Interest rate as at 31.03.2013-13% p.a.)

0.036

0.160

SBI Car (Honda Civic)

(Repayable in 60 equal monthly installations, last installment falling due on March 2017. Interest rate as at 31.03.2013-11.25% p.a.)

0.724

0.928

SBI Car (1-10) Loan

(Repayable in 36 equal monthly installations, last installment falling due on Sept. 2015. Interest rate as at 31.03.2013-12.50% p.a.)

0.208

0.000

Loans from related parties

From Shareholders

15.654

15.091

SHORT TERM BORROWINGS

 

 

Repayable on Demand. Rate of Interest applicable is 12% p.a.

Inter corporate deposit

1.760

1.778

Relatives of Directors and Shareholders

1.597

1.297

 

 

 

Total

 

30.182

28.760

 

 

CONTINGENT LIABILITIES (AS ON 31.03.2013):

 

1.       Guarantees given by Bank on behalf of the Company Rs. 5.660 Millions. Fixed Deposit receipts worth Rs. 2.454 Millions have been pledges with the banks against the Guarantees.

 

2.       Income Tax assessment completed upto assessment year 2009-2010. Income Tax demand of Rs. 0.034 Million for the Assessment Year 2001-02 Rs. 0.043 Million for the Assessment Year 2004-05 and Rs. 0.426 Million for the Assessment Year 2005-06 not provided, as the Company has preferred appeals against the same. Income tax demand has already been paid by the Company and shown under the head Advance Income Tax under Loans and Advances.

 

3.       Sales Tax assessment completed upto Financial Year 2009-2010. Sales Tax demand of Rs. 2.564 Millions raised due to not receipt of declaration forms not provided, as the Company has preferred appeals against the same.  


FIXED ASSETS:

 

Ř       Land

Ř       Building

Ř       Plant and Machinery

Ř       Testing Equipment

Ř       Cooling Equipment

Ř       Dies

Ř       Electric Installation

Ř       Computer

Ř       Office Equipment

Ř       Vehicles

Ř       Furniture and Fixture

Ř       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. 62.45

UK Pound

1

Rs. 102.01

Euro

1

Rs. 84.35

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

31

 

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.