MIRA INFORM REPORT

 

 

Report Date :

08.02.2014

 

IDENTIFICATION DETAILS

 

Name :

ADLER MEDIEQUIP PRIVATE LIMITED

 

 

Registered Office :

Sushrut House, Survey No. 288, Next to MIDC Hinje, At Mann, Taluka Mulsi, Pune – 411057, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

26.06.1992

 

 

Com. Reg. No.:

11-067454

 

 

Capital Investment / Paid-up Capital :

Rs.3.065 Millions

 

 

CIN No.:

[Company Identification No.]

U29297MH1992PTC067454

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Surgical Implants and Instruments.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 3700000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is an establishment company having satisfactory track record.

 

There appears dip in the profit of the company during 2013. However, financial position appears to be fair.

 

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

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTE:

It regards to an order on subject company kindly be informed that subject company has been taken over by SMITH AND NEPHEWS PLC, which is London listed company.

 

From the government registry we have found the status of all directors as a cessation. Hence we had a word with Mr. Vincet (Admin Department) for new management people’s detail but he just parted us with one name (Mr. Nikunj Shah) and further he declined to part another names.

 

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.

INFORMATION PARTED BY

 

Name :

Mr. Vincet

Designation :

Admin Department

Contact No.:

91-2354-240179

 

 

LOCATIONS

 

Registered Office :

Sushrut House, Survey No. 288, Next to MIDC Hinje, At Mann, Taluka Mulsi, Pune – 411057, Maharashtra, India

Tel. No.:

91-20-66520700

Fax No.:

91-20-66520800

E-Mail :

accounts@sushrut.com

deepa_kewlani@sushrut.com

kundan-tambe@sushrut.com

Website :

http://www.adlermediequip.com

 

 

Factory :

At Muradpur, P.O Hativ, Taluka Sangameshwar, District Ratnagiri – 415804, Maharashtra, India

Tel. No.:

91-2354-240179

Fax No.:

91-2354-240336

 

 

DIRECTORS

 

Name :

Mr. Nikunj Shah

Designation :

Director

 

NOTE: Mr. Vincet declined to part another Directors name.

 

MAJOR SHAREHOLDERS

 

AS ON 24.09.2013

 

Names of Shareholders

 

 

No. of Shares

Pitre Vasant Vimal

 

14000

Pitre Manohar Vasant

 

14000

Pitre Vasant Ajay

 

163300

Pitre Ajay Bharati

 

70200

Vasant Pitre (HUF)

 

10000

Ajay Pitre (HUF)

 

5000

Pitre Ajay Varun

 

15000

Pitre Ajay Anuja

 

15000

 

 

 

Total

 

306500

 

Equity Share Break up (Percentage of Total Equity)

 

AS ON 24.09.2013

 

Category

Percentage

Directors or relatives of Directors

100.00

 

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Surgical Implants and Instruments.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         State Bank of India, Commercial Branch, Vile Parle (East), Mumbai - 400057, Maharashtra, India

·         Bank of Maharashtra, Tilak Road Branch, Sadashiv Peth, Pune - 411030, Maharashtra, India

·         Janata Sahakari Bank Limited, Vile  Parle (East) Branch, Mumbai - 400057, Maharashtra, India

 

 

Facilities :

SECURED LOANS

31.03.2013

Rs. In Millions

31.03.2012

Rs. In Millions

Long Term Borrowings

 

 

Vehicle Loan from Sundaram Finance Limited

0.000

0.280

Term Loan from Bank of Maharashtra

0.000

7.094

 

 

 

Short Term Borrowings

 

 

Cash credit from Scheduled Bank

0.000

1.979

 

 

 

Total

0.000

9.353

 

NOTES:

 

Long Term Borrowings:

·         Vehicle Loan is secured against the designated vehicle and repayable in monthly EMIs for 36 months

 

·         Term Loan from Bank of Maharashtra is secured against Fixed Assets of the Company with additional personal guarantees from two of the Directors. The term loan is for 5 years with monthly installment plus interest thereon.

 

Short Term Borrowings:

·         Cash Credit Loans are secured by hypothecation of present and future stock of raw material, stock-in-trade, finished goods, Book Debts, receivables etc. with additional security in terms of personal guarantees from two of the Directors.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

GPS and Associates

Chartered Accountants

Address :

A-1, Sindhi Niwas, Sitaladevi Temple Road, Mahim, Mumbai – 400016, Maharashtra, India

PAN No.:

AADFG4422H

 

 

Enterprise over which key managerial personnel are able to exercise significant influence:

·         Adler Mediequip Private Limited

·         Ajay Pitre Properties

·         Pitre Foundation

·         Credar – Hospitality

·         Clariance IT Solutions Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 24.09.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500000

Equity Shares

Rs. 10/- each

Rs.5.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

306500

Equity Shares

Rs. 10/- each

Rs.3.065 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

3.065

3.065

3.065

(b) Reserves & Surplus

89.081

79.869

68.916

(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)

92.146

82.934

71.981

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

65.700

51.872

26.682

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(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)

65.700

51.872

26.682

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

1.979

7.656

(b) Trade payables

23.401

22.053

29.093

(c) Other current liabilities

21.498

17.636

14.737

(d) Short-term provisions

0.000

3.384

2.689

Total Current Liabilities (4)

44.899

45.052

54.175

 

 

 

 

TOTAL

202.745

179.858

152.838

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

43.464

51.461

43.671

(ii) Intangible Assets

0.346

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

0.433

0.546

(c) Deferred tax assets (net)

4.427

3.065

3.422

(d)  Long-term Loan and Advances

12.536

9.013

10.307

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

60.773

63.972

57.946

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

28.636

14.761

8.753

(b) Inventories

41.458

42.304

37.280

(c) Trade receivables

46.665

50.130

39.263

(d) Cash and cash equivalents

24.070

7.121

6.125

(e) Short-term loans and advances

1.106

1.515

3.408

(f) Other current assets

0.037

0.055

0.063

Total Current Assets

141.972

115.886

94.892

 

 

 

 

TOTAL

202.745

179.858

152.838

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

184.421

175.427

159.782

 

 

Other Income

2.724

0.743

1.286

 

 

TOTAL                                     (A)

187.145

176.170

161.068

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Material Consumed

48.147

40.694

48.405

 

 

Purchases of Stock in Trade

20.175

14.862

8.328

 

 

Changes in Inventories of Finished Goods, Stock in trade

(1.471)

(3.207)

(7.828)

 

 

Employee Benefits Expense

23.208

21.522

19.487

 

 

Other Expenses

66.802

64.239

62.736

 

 

Short provision of Tax in earlier year

0.000

0.000

0.783

 

 

Gain/Loss on Settlement Prior Period Items

0.000

0.000

(0.494)

 

 

Profit / (Loss) on redemption / restatement of Mutual Funds

0.000

0.000

0.017

 

 

Sale of Assets

0.510

 

 

 

 

TOTAL                                     (B)

157.371

138.110

131.434

 

 

 

 

 

Less

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

29.774

38.060

29.634

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

8.946

5.623

4.211

 

 

 

 

 

 

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

20.828

32.437

25.423

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                     (F)

13.612

13.461

11.247

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

7.216

18.976

14.176

 

 

 

 

 

 

TAX                                                                  (H)

1.400

4.640

0.559

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

8.617

14.336

13.617

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

36.092

32.640

24.212

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

7.500

2.500

 

 

Proposed Dividend

0.000

2.913

2.299

 

 

Corporate Dividend Tax

0.000

0.472

0.390

 

BALANCE CARRIED TO THE B/S

44.709

36.092

32.640

 

 

 

 

 

 

Earnings Per Share (Rs.)

28.11

46.77

44.43

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

4.60

8.14

8.45

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

3.91

10.82

8.87

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.64

10.76

9.52

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.08

0.23

0.20

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.71

0.65

0.48

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.16

2.57

1.75

 

 

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

Yes

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

 

 

NOTE:

 

The Registered Office of the company has been shifted from At Muradpur, Post Hativtal Sangam, Ratnagiri – 415610, Maharashtra, India to the present address w.e.f. 12.12.2007

 

 

 

 

 

 

 

 

LITIGATION DETAILS:

 

 

HIGH COURT OF BOMBAY

 

Case Details

 

 

Bench:-Bombay

 

 

Presentation Date:- 29/07/2013

 

 

 

 

 

 

Lodging No.:-

ITXAL/1221/2013

Filing Date:-

29/07/2013

Reg. No.:-

ITXA/2334/2013

Reg. Date:-

11/12/2013

 

 

 

 

Petitioner:-

THE COMMISSIONER OF INCOME TAX-I -

Respondent:-

ADLER MEDIEQUIP PRIVATE LIMITED -

 

 

 

Petn.Adv.:-

VIPUL ARUN BAJPAYEE ()

 

 

 

District:-

PUNE

 

 

 

Bench:-

DIVISION

 

 

 

Status:-

Pre-Admission

 

 

 

Next Date:-

11/02/2014

Stage:-

FOR REJECTION [ORIGINAL SIDE MATTERS]

Coram:-

ACCORDING TO SITTING LIST

ACCORDING TO SITTING LIST

 

 

 

 

 

 

Act :-

Income Tax Act, 1961

 

 

UNSECURED LOANS:

 

Particulars

31.03.2013

Rs. In Millions

31.03.2012

Rs. In Millions

Long Term Borrowings

 

 

Loan from Directors and Shareholders

65.700

37.450

Deferred liabilities (from DCK Limited)

0.000

2.048

Loan from Department of Biotechnology (DBT)

0.000

5.000

 

 

 

Total

65.700

44.498

 

NOTES:

 

Long Term Borrowings:

 

·         Deferred liabilities are towards the Sales Tax Deferment scheme of State Government of Maharashtra. Which has been paid in full during the year.

 

·         Loan from Department of Biotechnology is for a specific project of Research and Development. This Loan is a soft loan as per the agreement signed with DBT within nominal interest to be repaid only after terms of the project. However, as on balance sheet date the company decided to prepay this loan subsequently, entire loan has been paid before signing the financials.

 

 

PERFORMANCE OF THE COMPANY:

 

Net Turnover

Subject’s turnover has increased from Rs.175.400 Millions to Rs.184.400 Millions showing growth of 5.13%.

 

Other Income

The other income has incurred from Rs.0.743 Million in the previous year to Rs.2.724 Millions in the current year. This is mainly attributable to the substantial increase in dividend income on mutual funds from Rs.0.412 Million in the previous year to Rs.2.175 Millions in the current year. Subject had kept the excess liquidity in short term investments considering the investment needs of the company.

 

Operating Profit (PBDIT)

The net profit of subject before interest, depreciation and taxes has decreased by 20.57%. the reduction in profitability is attributable towards inflationary trend and thereby increases in input cost.

 

 

INDEX OF CHARGE:

 

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10121827

24/10/2013 *

16,000,000.00

BANK OF MAHARASHTRA

TILAK ROAD BRANCH, SADASHIV PETH, PUNE  - 411030, MAHARASHTRA, INDIA

B87903613

 

* Date of charge modification

 

 

PRESS RELEASE:

 

SMITH AND NEPHEW TO BUY ADLER MEDIEQUIP AND SUSHRUT SURGICALS

 

03.05.2013

 

Smith and Nephew Plc, the London listed firm engaged in medical technology business has announced to acquire Adler Mediequip Private Limited and with it, the brands and assets of Sushrut Surgicals Private Limited, producer of orthopaedic trauma products.

 

The acquisition will give Smith & Nephew a well-established platform to provide and develop products for the mid-tier market in India and for export as well as entry point to India's trauma segment.

 

The Sushrut-Adler Group was born in 1973 with the incorporation of Sushrut Surgicals Private Limited The group company, Adler Mediequip, was set up in 1993 with the objective of building on Sushrut’s experience in orthopaedic device business and bringing world-class orthopaedic medical devices to India.

 

At present, Adler Mediequip is the exclusive manufacturing arm for the group's operations, with Sushrut Surgicals being the marketing arm.

 

It current portfolio of devices can be divided into three broad clinical areas viz. ‘traumatology’, ‘spinal surgery’ and ‘reconstructive orthopaedic surgery’. In each of these areas, the group has a comprehensive range of implantable devices and complementary instrumentation.

 

Adler employs 116 people, while approximately 50 Sushrut employees (which include sales force that directly supports the Adler business) will also transfer as part of the arrangement.

 

Smith and Nephew is engaged global medical technology business with leadership positions in Orthopaedic Reconstruction, Advanced Wound Management, Sports Medicine and Trauma. It has around 10,500 employees and a presence in more than 90 countries.

 

The acquisition of trauma business is a part Smith & Nephew’s expansion of its woundcare and minimally invasive surgery offerings into emerging markets, in order to offset dwindling sales in mature European economies such as Germany.

 

 

FIXED ASSETS:

 

·         Freehold Land

·         Leasehold Land

·         Factory Building

·         Plant and Machinery

·         Lab Equipments

·         Dies and Fixtures

·         Air Conditioner

·         Electrical Installation – Office

·         Furniture and Fixtures

·         Office Equipments

·         Bicycle

·         Computer

·         Vehicle

 


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 records 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.61.01

UK Pound

1

Rs.101.78

Euro

1

Rs.84.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

NKT

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

 

50

 

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.