MIRA INFORM REPORT

 

 

Report Date :

17.01.2014

 

IDENTIFICATION DETAILS

 

Name :

MAHINDRA VEHICLE MANUFACTURERS LIMITED (w.e.f. 19.12.2008)

 

 

Formerly Known As :

MAHINDRA AUTOMOTIVE LIMITED

 

 

Registered Office :

Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai – 400 018, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

25.05.2007

 

 

Com. Reg. No.:

11-171151

 

 

Capital Investment / Paid-up Capital :

Rs.9622.500 Millions

 

 

CIN No.:

[Company Identification No.]

U34100MH2007PLC171151

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM32438A

 

 

PAN No.:

[Permanent Account No.]

AAFCM1217M

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Tractors and Utility Vehicles. 

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (57)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 51300

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a wholly owned subsidiary of “Mahindra and Mahindra Limited”.

 

It is an established company having fine track record.

 

The company has achieved better growth in sales and profit of company in 2013. It also gets good support from its holding company.

 

Trade relation reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment.

 

The company can be considered normal 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

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

AA [Non-Convertible Debenture]

Rating Explanation

Having high degree of safety regarding timely servicing of financial obligation it carry low credit risk.

Date

January 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.

 

 

INFORMATION DENIED

 

MANAGEMENT NON CO-OPERATIVE (91-22-28849588)

 

 

LOCATIONS

 

Registered Office :

Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai – 400 018, Maharashtra, India

Tel. No.:

91-22-24931441/ 24935626

Fax No.:

91-22-24900833

E-Mail :

iyer.sangameshwar@mahindra.com

maheshwari.sumeet@mahindra.com

Website :

http://www.mahindra.com

 

 

Factory :

Located at MIDC Chakan, Pune – 410 501, Maharashtra, India

 

 

DIRECTORS

 

As on 18.06.2013

 

Name :

Dr. Pawan Kumar Ram Kishore Goenka

Designation :

Director

Address :

Flat No.602, 9, JVPD, Near UTI Bank Limited, 10th Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

23.09.1954

Date of Appointment :

25.05.2007

DIN No.:

00254502

 

 

Name :

Mr. Louis Percival Pereira

Designation :

Director

Address :

504, Ashok Nagar, 1-B Wing, Vazira Naka, Borivali (West), Mumbai – 400 092, Maharashtra, India

Date of Birth/Age :

21.07.1948

Date of Appointment :

28.04.2011

DIN No.:

01329348

 

 

Name :

Mr. Ajay Mansukhlal Choksey

Designation :

Director

Address :

Kanyakumari CHS, C-21, 2nd Floor, A.K. Road, Plot C/5, 662, Andheri (East), Mumbai – 400 069, Maharashtra, India

Date of Birth/Age :

12.08.1952

Date of Appointment :

06.08.2008

DIN No.:

00204454

 

 

Name :

Mr. Sundaram Venkatraman

Designation :

Director

Address :

501, Vikas Classic, Building No.4, Behind Basant Theater, Dr. C. Gidwani Marg, Chembur, Mumbai – 400 074, Maharashtra, India

Date of Birth/Age :

07.05.1952

Date of Appointment :

19.11.2008

DIN No.:

00077193

 

 

Name :

Mr. Pravin Nagindas Shah

Designation :

Additional Director

Address :

41/42, Sailesh, Plot No.94A, Linking Road, TPS 2, Santacruz (West), Mumbai – 400 054, Maharashtra, India

Date of Birth/Age :

14.05.1954

Date of Appointment :

25.01.2012

DIN No.:

00056173

 

 

Name :

Mr. Vijay Anant Dhongde

Designation :

Director

Address :

D-1, 207, Jumbo Darshan Co-operative Society Limited, Jeeva Mahale Road, Andheri (East), Mumbai-400069, Maharashtra, India

Date of Birth/Age :

19.09.1953

Date of Appointment :

23.08.2011

DIN No.:

03601867

 

 

KEY EXECUTIVES

 

Name :

Mr. Vijay Anant Dhongde

Designation :

Manager

Address :

D-1, 207, Jumbo Darshan Co-operative Society Limited, Jeeva Mahale Road, Andheri (East), Mumbai-400069, Maharashtra, India

Date of Birth/Age :

19.09.1953

Date of Appointment :

01.04.2011

Pan No.:

ADBPD7401N

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 18.06.2013

 

Names of Shareholders

No. of Shares

Mahindra and Mahindra Limited, India

962249994

Mahindra and Mahindra Limited, India Jointly with Anand G. Mahindra

1

Mahindra and Mahindra Limited, India Jointly with Bharat Doshi

1

Mahindra and Mahindra Limited, India Jointly with A.K. Nanda

1

Mahindra and Mahindra Limited, India Jointly with Pawan Kumar Goenka

1

Mahindra and Mahindra Limited, India Jointly with P. N. Shah

1

Mahindra and Mahindra Limited, India Jointly with Rajeev Dubey

1

 

 

Total

962250000

 

As on 18.06.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Bodies corporate

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Tractors and Utility Vehicles. 

 

 

Products :

ITC Code

Product Description

8703

Passenger Vehicles

8704

Light Transport Vehicle

8706

Heavy Commercial Vehicle

8429

Construction Equipments

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

·         Canara Bank (Security Trustee for the Lenders), Prime Corporate Branch - II, Verma Chambers, 2nd Floor, Homji Street, Fort, Mumbai – 400 001, Maharashtra, India

·         State Bank of India, Voltas House, 23, J.N. Heredia Marg, Mumbai – 400 001, Maharashtra, India

 

 

Facilities :

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

Non-convertible debenture others

8000.000

8000.000

Term loans from bank

588.100

1094.400

 

 

 

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from bank

663.700

16.800

 

 

 

Total

9251.800

9111.200

 

Banking Relations :

--

 

 

Financial Institution :

Axis Trustee Services Limited, Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Mumbai, Maharashtra, India

PAN No. :

AABFD7919A

 

 

Holding Company :

Mahindra and Mahindra Limited

 

 

Fellow Subsidiary :

·         Mahindra Automobile Distributor Private Limited

·         Mahindra Reva Electric Vehicles Private Limited

·         Mahindra Intertrade Limited

·         Mahindra Ugine Steel Company Limited

·         Mahindra Forging Limited

·         Mahindra Hinodaya Limited

·         Mahindra Logistics Limited

·         Mahindra Navistar Engine Private Limited

·         Mahindra Navistar Automotive Limited

·         Mahindra Gears and Transmissions Private Limited

·         Mahindra BPO Services Private Limited

·         Mahindra Holidays and Resorts India Limited

·         Ssangyong Motor Company, Korea

·         Mahindra Conveyor Systems Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1300000000

Equity Shares

Rs.10/- each

Rs.13000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

962250000

Equity Shares

Rs.10/- each

Rs.9622.500 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

9622.500

9622.500

9622.500

(b) Reserves & Surplus

3217.500

1198.700

(19.000)

(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)

12840.000

10821.200

9603.500

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

8588.100

9094.400

8387.000

(b) Deferred tax liabilities (Net)

1408.400

618.300

0.000

(c) Other long term liabilities

0.000

0.000

4.300

(d) long-term provisions

365.200

128.900

103.300

Total Non-current Liabilities (3)

10361.700

9841.600

8494.600

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

663.700

16.800

388.800

(b) Trade payables

13700.200

13302.700

4116.700

(c) Other current liabilities

2724.300

2689.800

1174.70

(d) Short-term provisions

832.000

11.400

7.600

Total Current Liabilities (4)

17920.200

16020.700

5687.800

 

 

 

 

TOTAL

41121.900

36683.500

23785.900

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

18593.900

17237.900

15457.000

(ii) Intangible Assets

102.400

94.800

24.100

(iii) Capital work-in-progress

558.100

675.500

625.200

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

28.000

28.000

28.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

4742.800

2568.400

1237.400

(e) Other Non-current assets

85.700

90.800

85.100

Total Non-Current Assets

24110.900

20695.400

17456.800

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

200.000

1361.400

0.000

(b) Inventories

6610.500

5617.500

2193.400

(c) Trade receivables

5982.900

4587.000

1672.400

(d) Cash and cash equivalents

327.500

1024.900

2.800

(e) Short-term loans and advances

635.100

1002.700

2440.000

(f) Other current assets

3255.000

2394.600

20.500

Total Current Assets

17011.000

15988.100

6329.100

 

 

 

 

TOTAL

41121.900

36683.500

23785.900

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

 

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

78894.600

44806.800

11808.900

 

 

Other Income

141.800

83.800

41.800

 

 

TOTAL                                    

79036.400

44890.600

11850.700

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

69724.200

40361.500

9852.000

 

 

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

(81.400)

(1916.200)

(859.900)

 

 

Employee benefit expense

1312.000

928.500

517.600

 

 

Other expenses

1653.900

1498.000

612.000

 

 

TOTAL                                    

72608.700

40871.800

10121.700

 

 

 

 

 

 

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

6427.700

4018.800

1729.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

1052.500

1246.100

864.500

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

5375.200

2772.700

864.500

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

1069.900

937.800

600.300

 

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

4305.300

1834.900

264.200

 

 

 

 

 

Less

TAX                                                                 

1467.500

617.200

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

2837.800

1217.700

264.200

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1162.700

(19.000)

(283.200)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Debenture Reserve

723.900

36.000

0.000

 

 

Proposed Dividend on Equity Shares

700.000

0.000

0.000

 

 

Income-Tax on Proposed Dividend

119.000

0.000

0.000

 

BALANCE CARRIED TO THE B/S

2457.600

1162.700

(19.000)

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

1287.100

249.300

 

 

Capital Goods

NA

204.900

60.900

 

TOTAL IMPORTS

NA

1492.000

310.200

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

2.95

1.27

0.34

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

3.59

2.71

2.24

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

5.46

4.09

2.24

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

10.62

5.10

1.14

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.33

0.17

0.03

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.72

0.84

0.91

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.95

1.00

1.11

 

 

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

 

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10434317

23/05/2013

8,000,000,000.00

Axis Trustee Services Limited

Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, INDIA

B77660553

2

10236113

14/06/2012 *

1,500,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA

B43154582

3

10213377

31/10/2012 *

2,000,000,000.00

CANARA BANK (Security Trustee for Standard Chartered Bank)

PRIME CORPORATE BRANCH - II, VERMA CHAMBERS, 2ND FLOOR, HOMJI STREET, FORT., MUMBAI, Maharashtra -
400001, INDIA

B61651733

 

* Date of charge modification

 

 

OPERATIONS

 

During the year, the Company launched a new product Rexton and several new variants of Maxximo and M and HCV and a 3 cylinder engine for Quanto.

 

The production volumes ramped up from 116502 vehicles in 2011-12 to 156143 during the year 2012-13 (34% increase over previous year).

 

The vehicles manufactured by the Company were exported to a number of countries. The number of vehicles exported (through Mahindra and Mahindra Limited) increased from 11,011 vehicles in 2011-12 to 19,252 vehicles in 2012 - 13 (75% increase over previous year).

 

The Company ensured that all expectations of customers were met in terms of volume and quality. With relentless focus on quality systems, the Company underwent surveillance audits for ISO 9001, EMS and OSHAS certification and MQS certification during the year. The Company also maintained a constant focus on cost reduction and successfully maintained costs below planned levels.

 

The Company won several awards and recognitions during the year. Some prominent ones amongst them included the Manufacturing Leadership Award by Industry 2.0, Manufacturing Today Award for Excellence in Technology, Mahindra Group Innovation Award for Commonizing the Genio assembly line, 8 Gold prizes from Quality Forum of India, Mahindra Group Award (1stprize) for Bandhan (Focused CSR initiative), etc.

 

During the year, the Company added new facilities which included Buildings for Tyre storage, Rexton Body Shop, Parts storage and construction work for central administration building commenced during the year and the work is progressing as per schedule.

 

The Company also inaugurated a Crčche for taking care of the children of women employees during the year. To ensure fresh, healthy and hygienic food to the employees, the Company operationalized a Central Kitchen

 

 


FIXED ASSETS

 

˛      Leasehold Land

˛      Buildings

˛      Plant and Machinery

˛      Furniture and Fixture

˛      Vehicles

˛      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.61.53

UK Pound

1

Rs.100.73

Euro

1

Rs.83.84

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Report Prepared by :

ANK

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

57

 

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.