MIRA INFORM REPORT

 

 

Report Date :

02.01.2014

 

IDENTIFICATION DETAILS

 

Name :

PL ENGINEERING LIMITED (w.e.f. 06.08.2009)

 

 

Formerly Known As :

SIMON CARVES INDIA LIMITED

 

 

Registered Office :

Punj Llyod House, 17-18, Nehru Place, New Delhi – 110019

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

13.12.2006

 

 

Com. Reg. No.:

55-156532

 

 

Capital Investment / Paid-up Capital :

Rs.262.300 Millions

 

 

CIN No.:

[Company Identification No.]

U45201DL2006PLC156532

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELS31862F

 

 

PAN No.:

[Permanent Account No.]

AAKCS4126L

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The Company is primarily engaged in the business of engineering and design consultancy services.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 2610000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record.

 

Company is progressing well. Rating also takes into consideration unconditional and irrevocable corporate guarantee provided by PLL (Punj Lloyed Limited).

 

Trade relations are reported to be 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.

 

 

ECGC Country Risk Classification List – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

Uptick in agriculture and construction spread some cheer as the economy grew a higher-than-expected 4.8 % in the three months through September. Manufacturing rose an annual rate per cent during the quarter and mining fell by 0.4 %, government data showed while farm output rose 46%.

 

India has emerged as the most attractive investment destination, thanks to a relaxation in foreign direct investment norms, says a report. India is followed by Brazil and China in the ranking part of EY’s Capital Confidence Barometer report based on a survey across 70 nations. The US, France and Japan have emerged as the top three investors likely to invest in India.

 

India has been ranked 83rd globally in terms of talent competitiveness of its human capital.  Switzerland, Singapore, Denmark, Sweden and Luxembourg are the top five in the list of 103 nations compiled by INSEAD business school.

 

Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average putting the country at low, 158th rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time taken for tax payments is relatively less in India which is rated ahead of China and Japan.

 

1 billion smartphone shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate of 18.4 % between 2013 and 2017, according to research from IDC.

 

20 % vacancy rate of office space in Mumbai and Delhi in the third quarter, the highest in Asia after Chengdu, in China. According to Cushman and Wakefield, six Indian cities are among the 10 office markets with the worst vacancies.

 

Foreign banks will not have to pay stamp duty and capital gains tax, if they convert their branch operations into a wholly owned subsidiary, according to the Reserve Bank of India.

 

The Reserve Bank of India is planning to launch CPI – indexed bonds aimed to protecting the savings of retail investors from the impact the price rise by December end.

 

Central Bureau of Investigation has booked State Bank of India, Deputy Managing Director Shyamal Acharya and others in a graft case related to distribution of a loan of over Rs 4000 mn. Gold and jewellery  worth Rs 6.7 mn have been recovered from the residence of Acharya.

 


 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term bank facilities A(SO)

Rating Explanation

Adequate credit quality and average credit risk

Date

January 04, 2013

 

 

Rating Agency Name

CARE

Rating

Short term bank facilities A1(SO)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

January 04, 2013

 

 

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 :

Punj Llyod House, 17-18, Nehru Place, New Delhi – 110019, India

Tel. No.:

91-124-2620123

Fax No.:

91-124-2620111

E-Mail :

rajivdudeja@punjlloyd.com

vivek.sapra@simoncorves.com

marketing@ple.co.n 

Website :

www.ple.co.in

 

 

Corporate Office :

5-7, Udyog Vihar, Phase IV, Gurgaon – 122016, Haryana, India

Tel. No.:

91-124-4860000

Fax No.:

91-124-4860001

 

 

DIRECTORS

 

As on 29.07.2013

 

Name :

Mr. Atul Punj

Designation :

Director

Address :

10, Prithvi Raj Road, New Delhi – 110011, India

Date of Birth/Age :

27.10.1957

Date of Appointment :

13.12.2006

DIN No.:

00005612

 

 

Name :

Mr. Pawan Kumar Gupta

Designation :

Director

Address :

126, Laburnum Sushant Lok Phase – I, Sector 28, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

24.08.1952

Date of Appointment :

16.12.2009

DIN No.:

01520949

 

 

Name :

Mr. Rajesh Kumar Dugar

Designation :

Director

Address :

31, Chitrakoot, Altamount Road, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

01.07.1969

Date of Appointment :

07.05.2010

DIN No.:

00307729

 

 

Name :

Mr. Sanjay Goel

Designation :

Director

Address :

House No. 003, Block BC, Nirwana Country, South City II Sector, 51, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

22.02.1956

Date of Appointment :

20.07.2012

DIN No.:

00352408

 

 

KEY EXECUTIVES

 

Name :

Mr. Sanjay Goel

Designation :

Manager

Address :

3, Birch Court, Nirwana Country, South City II, Sector 51, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

22.02.1956

Date of Appointment :

21.05.2010

PAN No.:

ACPKG9182D

 

 

Name :

Mr. Vijay Hazari

Designation :

Secretary

Address :

HL 30, L Block, Hari Nagar, New Delhi – 110064, India 

Date of Birth/Age :

25.10.1978

Date of Appointment :

01.10.2013

PAN No.:

AAZPH6936P

 


 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.07.2013

 

Names of Shareholders (Equity Shareholders)

No. of Shares

Punj Lloyd Limited, India

4999994

Atul Punj

1

Luv Chhabra

1

Dinesh Thairani

1

Sanjay Goel

150000

FIL Capital Management Mauritius Limited, Mauritius

1066955

Fidelity India Principals, India

8045

Anupam Sharma

1

Vijay Hazari

1

Manhar Kapoor

1

 

 

Total

6225000

 

 

Names of Shareholders (Preference Shareholders)

No. of Shares

FIL Capital Management Mauritius, Mauritius

19855

Fidelity Principals, India 

150

Total

20005

 

 

As on 29.07.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

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

17.14

Bodies corporate

80.45

Directors or relatives of Directors

2.41

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is primarily engaged in the business of engineering and design consultancy services.

 

 

Products :

Item Code No. (ITC Code)

Product Description

99833220

Engineering services for industrial and manufacturing projects

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

State Bank of India Overseas Branch, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi - 110001, India

 

 

Facilities :

SECURED LOANS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Rupee term loan from bank

7.240

13.501

 

 

 

SHORT TERM BORROWINGS

 

 

Rupee term loan from bank

241.784

194.887

 

 

 

Total

249.024

208.388

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Walker, Chandiok and Company

Chartered Accountants

Address :

21st Floor, DLF Square, Jacaranda Marg, DLF Phase II, Gurgaon - 122002, Haryana,  India

PAN No. :

AAAFW4298E

 

 

Subsidiaries :

Ø       Simon Carves Engineering Limited, United Kingdom

Ø       Punj Lloyd Engineering Pte. Limited, Singapore

 

 

Holding Company :

Ø       PUNJ-LLOYD LIMITED, India

CIN No. : L74899DL1988PLC033314

 

 

Joint Venture :

Ø       AeroEuro Engineering India Private Limited, Singapore

CIN No. : U74900DL2011PTC219149

Ø       PLE TCI Engineering Limited, Singapore

CIN No. : U74210DL2010PLC199851

 

 

Fellow Subsidiary Company :

Ø       Simon Carves Limited, UK

Ø       Punj Lloyd Pte Limited, Singapore

Ø       Punj Lloyd Kazakhstan LLP, Kazakhstan

Ø       Punj Lloyd Oil and Gas (Malaysia) Sdn Bhd, Malaysia

Ø       Simon Carves Pte Limited, Singapore

 


 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10000000

Equity Shares

Rs.10/- each

Rs.100.000 Millions

20005

Preference Shares

Rs.10000/- each

Rs.200.050 Millions

 

 

 

 

 

Total

 

Rs.300.050 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6225000

Equity Shares

Rs.10/- each

Rs.62.250 Millions

20005

Preference Shares

Rs.10000/- each

Rs.200.050 Millions

 

 

 

 

 

Total

 

Rs.262.300 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

262.300

262.300

262.300

(b) Reserves & Surplus

390.280

334.516

519.135

(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)

652.580

596.816

781.435

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

7.240

13.501

8.427

(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

14.710

10.951

40.067

Total Non-current Liabilities (3)

21.950

24.452

48.494

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

241.784

194.887

0.000

(b) Trade payables

116.200

130.299

88.738

(c) Other current liabilities

76.737

66.291

44.450

(d) Short-term provisions

43.197

43.829

36.516

Total Current Liabilities (4)

477.918

435.306

169.704

 

 

 

 

TOTAL

1152.448

1056.574

999.633

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

42.344

51.607

42.222

(ii) Intangible Assets

52.340

56.396

28.011

(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

13.017

12.752

110.778

(c) Deferred tax assets (net)

32.827

59.518

2.540

(d)  Long-term Loan and Advances

56.358

49.310

34.905

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

196.886

229.583

218.456

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

498.941

416.662

529.101

(d) Cash and cash equivalents

59.192

101.182

43.759

(e) Short-term loans and advances

76.145

96.255

33.925

(f) Other current assets

321.284

212.892

174.392

Total Current Assets

955.562

826.991

781.177

 

 

 

 

TOTAL

1152.448

1056.574

999.633

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

1065.402

751.196

1210.800

 

 

Other Income

27.393

41.446

25.239

 

 

TOTAL                                    

1092.795

792.642

1236.039

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee benefit expense

710.024

724.768

706.094

 

 

Other expenses

247.514

274.490

306.873

 

 

TOTAL                                    

957.538

999.258

1012.967

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

135.257

(206.616)

223.072

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

24.254

8.165

4.924

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

111.003

(214.781)

218.148

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

28.547

26.816

14.916

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX 

82.456

(241.597)

203.232

 

 

 

 

 

Less

TAX                                                                 

26.692

(56.978)

65.262

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

55.764

(184.619)

137.970

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

8.96

(29.66)

22.55

 

 


KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

5.10

(23.29)

11.16

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

7.74

(32.16)

16.78

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

7.45

(24.54)

22.93

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.13

(0.40)

0.26

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.38

0.35

0.01

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.99

1.90

4.60

 

 

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

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

10100587

28/03/2013 *

514,800,000.00

State Bank of India

OVERSEAS BRANCH, JAWAHAR VYAPAR BHAWAN, 1, TOLSTOY MARG, NEW DELHI, Delhi - 110001, INDIA

B74797226

 

* Date of charge modification

 

 

REVIEW OF PERFORMANCE:

 

After a difficult previous year 2011-12, Subject the Company entered the Financial year 2012-13 with a strong order book of INR 2090.000 millions, strengthening the Company’s position in the Global market. Winning projects is one part executing them is more critical and the Company has successfully accomplished these orders, resulting in the turnover growing from IN 751.200 millions in FY2011-12 to INR 1065.400 millions in FY2012-13. The Company also generated healthy profits before tax of INR 82.300 millions in this financial year compared to the losses before tax of INR 241.600 millions in previous financial year. The company is still facing difficult time due to worldwide slow economy.

 

While traditionally, the business was focused on the oil and gas segment, given the inherent risks of the business cycles of this industry, the Company has taken steps on diversifying its business both horizontally and vertically has resulted in mitigating risk of business uncertainties. Geographical expansion is something on which the Company is focusing. However, there was severe pressure in developing new business. Consequently, the order book position has gone down considerably by the end of FY2013-14. The slowing growth markets in India, Middle East and South East Asia remained depressed. The depreciation of the Brazilian Real made took away the cost arbitrage in outsourcing jobs from Brazil to India. As a result, the newly set up joint venture in Brazil could not develop the envisaged growth in orders. In this environment, the Company has intensified its business development efforts. It has secured new projects in the new geographical.

 

Going forward, the focus is on growing the order book with more emphasis on annuity type of businesses. The Company is also looking to unlock the business potential from mid-sized international clients by way of developing and deploying team equipped specialized competencies and skills in different domains. The focus is on targeting who cannot set up their own captive and serving them with a consistent team of engineers. The Company is already in talks with some UK based companies to develop business on this model. Given the difficult business environment, the company will focus on penetrating new geographies and emphasize on partnering existing clients in a strategic manner to generate repeat business.

 

Integrated operations of Simon Carves Engineering Limited (SCEL): In FY2012, PLE acquired the assets, IPR, human recourse and order book of the UK based SCEL. There has been seamlessly integration of the two entities and today; PLE operates through a network of integrated multi-cultural delivery offices. The company is actively leveraging Simon Carves credentials in the petrochemicals and chemicals space and also as a front-end contact point for marketing efforts in EU, USA and Latin America.

 

Middle East Branch Operations started: Middle East Branch office of Punj Lloyd Engineering Pte Limited. Singapore (PLEPT) started operations and successfully registered itself with key clients. PLEPT is 100% subsidiary of PL E. This year, the company is planning to expand its operations and will increase employee strength in Middle East to cater local engineering needs.

 

Pre-qualifications completed for

India: Oil and Natural Gas Corporation Limited, Jacobs Engineering

Middle East: Kuwait Oil Company (KOC), Petronas Carigalli-Iraq

Africa: Libya: Mellitah Oil and Gas, Waha Oil Co., Joannou and Paraskevaides Energy and Industrial Projects S.A., Ghana: Tullow Oil plc

 

The company have applied for further qualifications in other major oil companies and expected to compete the registration process very soon.

 

Joint Venture Company, Aeroeuro Engineering India Private Limited, which was set up in 2011 as a joint venture with GECI International, France, is passing through a difficult phase due to liquidation of GECI International’s Sky lander program. The company is putting its best efforts to revive this joint venture company by diversifying its capabilities.

 

All the above stated initiatives will help the company in diversifying customer base and reduced dependency on parent company for the business by winning majority orders from third party clients. All these initiatives will create a value for the shareholders in upcoming years.

 

 


FIXED ASSETS

 

Ø       Plant and Equipment

Ø       Furniture and Fixtures

Ø       Vehicles

Ø       Office Equipment

 

 

 

 


 

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]         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.61.93

UK Pound

1

Rs.102.39

Euro

1

Rs.85.12

 

 

INFORMATION DETAILS

 

Report Prepared by :

ANK

 


 

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

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

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

 

46

 

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.