MIRA INFORM REPORT

 

 

Report Date :

17.01.2014

 

 

el. No.:

91-285-2660888/2661008

Fax No.:

91-285-2661008

 

 

IDENTIFICATION DETAILS

 

Name :

MARS BEARINGS COMPANY PRIVATE LIMITED

 

 

Registered Office :

501/1, GIDC Industrial Estate, Phase – II, Dolatpara, Junagadh-362003, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

14.09.1995

 

 

Com. Reg. No.:

04-027479

 

 

Capital Investment / Paid-up Capital :

Rs.6.399 Millions

 

 

CIN No.:

[Company Identification No.]

U36999GJ1995PTC027479

 

 

Legal Form :

Private Limited Liability Company.

 

 

Line of Business :

Manufacturer and Trader of Spherical Roller Bearings, Radial Ball Bearings, Angular Contact Ball Bearings, Cylindrical Roller Bearing, Ball Bearings, Tapered Roller Bearings And Special Purpose Bearings.

 

 

No. of Employees :

25 (Approximately)

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (32)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 25000

 

 

Status :

Moderate

 

 

Payment Behavior :

Slow But Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

There appears accumulated losses recorded by the company which seems to be decreasing over year.

 

However, the company has achieved profit during the financial year 2013.

 

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

 

The company can be considered for business dealing 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.

 

 

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.

 

 

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. Natvar Sharma

Designation :

Director

Contact No.:

91-9712194121

Date :

02.01.2014

 

 

LOCATIONS

 

Registered/ Factory Office :

501/1, GIDC Industrial Estate, Phase – II, Dolatpara, Junagadh-362003, Gujarat, India

Tel. No.:

91-285-2660888/2661008

Mobile No.:

91-9712194121 (Mr. N. R. Sharma)

Fax No.:

91-285-2661008

E-Mail :

cdcfc@rediffmail.com

Website :

www.sumobearing.com

Location :

Owned

 

 

DIRECTORS

 

AS ON 18.09.2013

 

Name :

Mr. Natvar Ruparanjan Sharma

Designation :

Director

Address :

A/3-502, Royal Apartment, Jayshri Road, Junagadh – 362001, Gujarat, India

Date of Appointment :

14.09.1995

DIN No.:

01923585

 

Name :

M/s. Roshniben Harjivanbhai Bhalodia

Designation :

Director

Address :

Block No.65 – B. Jitendra Park, Zanzarda Road,  Junagadh – 362001, Gujarat, India

Date of Appointment :

14.09.1995

DIN No.:

00704252

 

Name :

Mr. Tarangkumar Shirishbhai Mehta

Designation :

Director

Address :

Chanakya Apartment, Block No.103, Nehru Park Society, Junagadh – 362001, Gujarat, India

Qualification :

14.09.1995

DIN No.:

00704335

 

Name :

Mr. Dharmendra Hariprasad Dave

Designation :

Director

Address :

A-03/302, Prasang Apartment, Talav Gate, Talav Gate Road, Junagadh – 362001, Gujarat, India

Date of Appointment :

14.09.1995

DIN No.:

00704298

 

 

Name :

Mr. Harjivanbhai Parshottambhai Bhalodia

Designation :

Director

Address :

Block No.65 – B. Jitendra Park, Zanzarda Road,  Junagadh – 362001, Gujarat, India

Date of Appointment :

30.09.2003

DIN No.:

00704361

 

Name :

M/s. Meenaxiben Hiteshkumar Solanki

Designation :

Director

Address :

A-1, 403, Royal Apartment, Near Jalaram Society, Junagadh – 362001, Gujarat, India

Date of Appointment :

30.09.2003

DIN No.:

00708686

 

Name :

M/s. Anishaben Iqbalbhai Sorathia

Designation :

Director

Address :

Bhatiya Dharmashala Road, Near Mathibhu Masjid, Huseni Chock, Junagadh – 362001, Gujarat, India

Date of Appointment :

30.09.2003

DIN No.:

01923629

 

Name :

M/s. Dipika Tarangbhai Mehta

Designation :

Director

Address :

Chanakya B, Block No.103, Zanzarda Road,  Junagadh – 362001, Gujarat, India

Date of Appointment :

14.09.1995

DIN No.:

01923681

 

Name :

M/s. Nilima Natvar Sharma

Designation :

Director

Address :

A/3 Royal Apartment, Block No.502, Talav Gate, Junagadh – 362001, Gujarat, India

Date of Appointment :

30.09.2003

DIN No.:

01923851

 

Name :

Mr. Iqbalbhai Sulemanbhai Sorathia

Designation :

Director

Address :

Bhatiya Dharmashala Road, Near Mathibhu Masjid, Huseni Chock, Junagadh – 362001, Gujarat, India

Date of Appointment :

01.04.2012

DIN No.:

05262937

Other Directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U36999GJ1995PTC027479

MARS BEARINGS COMPANY PVT LTD

Director

21/09/2012

01/04/2012

-

Active

NO

 

Name :

Mr. Hiteshbhai Mansukhlal Solanki

Designation :

Director

Address :

A-1, 403, Royal Apartment, Near Jalaram Society, Junagadh – 362001, Gujarat, India

Date of Appointment :

14.09.1995

DIN No.:

00704270

Other Directorship:

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U36999GJ1995PTC027479

MARS BEARINGS COMPANY PVT LTD

Director

14/09/1995

14/09/1995

-

Active

NO

2

U17120GJ2012PTC068946

VASUDEV GINNING & PRESSING PRIVATE LIMITED

Director

08/02/2012

08/02/2012

-

Active

NO

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 18.09.2013

 

Names of Shareholders

No. of Shares

Natvar Ruparanjan Sharma

35010

Hiteshbhai Mansukhlal Solanki

32700

Iqbalbhai Sulemanbhai Sorathia

35310

Roshniben Harjivanbhai Bhalodia

48000

Tarangkumar Shirishbhai Mehta

52900

Dharmendra Hariprasad Dave

57000

Nilima Natvar Sharma

20200

Harjivanbhai Parshottambhai Bhalodia

40000

Meenaxiben Hiteshkumar Solanki

38000

Dipika Tarangbhai Mehta

25100

Amir Iqbalbhai Sorathia

12500

Dilipbhai M Solanki

12500

Prakash S. Mehta

7600

Ashok R. Dave

11700

Suleman D. Sorathia

21500

Suchetaben R. Sharma

16700

Rupranjan G. Sharma

43090

Prabhaben M. Solanki

7500

Mansukhlal G. Solanki

4000

Ashuben V. Bhas

6000

Rajak A Sorathia

5500

Sameeraben R. Sorathia

4000

Anishaben I. Sorathia

30190

Architaben S. Mehta

2500

Shirishchandra M. Mehta

7000

Meenaben D. Dave

20600

Niruben D. Solanki

10500

Hariprasad Dave

5800

Sagar S. Mehta

5900

Abhishek Dilipbhai Solanki

6800

Dharmendra H Dave HUF

5000

Harjivanbhai P. Bhalodia HUF

8800

 

 

Total

639900

 

AS ON 18.09.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

 

 

Directors or relatives of Directors

100.00

 

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Spherical Roller Bearings, Radial Ball Bearings, Angular Contact Ball Bearings, Cylindrical Roller Bearing, Ball Bearings, Tapered Roller Bearings And Special Purpose Bearings.

 

 

Terms :

 

Selling :

L/C / Credit

 

 

Purchasing :

L/C / Credit

 

 

GENERAL INFORMATION

 

Suppliers :

·         Jainco Bearings Private Limited

·         Sheetal Engineering

 

 

Customers :

End Users

·         Om Trading Company

·         Active Industries

 

 

No. of Employees :

25 (Approximately)

 

 

Bankers :

·         Bank of India – Janta Chowk, Junagadh – 362001, Gujarat, India

 

 

Facilities :

SECURED LOANS

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

From Bank and Financial Institution

 

 

Bank of India, Junagadh Cash Credit Account

0.433

0.390

Bank of India, Junagadh Book Debts Account

0.384

0.003

 

 

 

Total

0.817

0.393

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

C. Javiya and Company

Chartered Accountants

Address :

10, Bhalia Bhavan, Near Jayshri Talkies, Junagadh – 362001, Gujarat, India

Tel. No.:

91-285-2624247

PAN No.:

ABUPJ6672N

 

 

CAPITAL STRUCTURE

 

AS ON 18.09.2013

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

750000

Equity Share

Rs.10/- each

Rs.7.500 Millions

 

 

 

 

 

Issued, Subscribed and Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

639900

Equity Share

Rs.10/- each

Rs.6.399 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

6.399

4.990

4.709

(b) Reserves & Surplus

(0.362)

(0.636)

(0.850)

(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)

6.037

4.354

3.859

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

3.202

2.698

2.372

(b) Deferred tax liabilities (Net)

0.301

0.078

0.054

(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)

3.503

2.776

2.426

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

9.632

7.267

5.719

(c) Other current liabilities

0.000

0.000

0.000

(d) Short-term provisions

0.147

0.000

0.000

Total Current Liabilities (4)

9.779

7.267

5.719

 

 

 

 

TOTAL

19.319

14.397

12.004

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1.852

1.610

1.112

(ii) Intangible Assets

0.000

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

0.013

0.013

0.013

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.068

Total Non-Current Assets

1.865

1.623

1.193

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

 

(b) Inventories

7.082

4.697

3.510

(c) Trade receivables

9.822

7.763

7.291

(d) Cash and cash equivalents

0.550

0.314

0.010

(e) Short-term loans and advances

0.000

0.000

0.000

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

17.454

12.774

10.811

 

 

 

 

TOTAL

19.319

14.397

12.004

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

36.932

31.237

19.973

 

 

Other Income

0.000

0.000

0.000

 

 

TOTAL                                     (A)

36.932

31.237

19.973

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

28.802

23.914

15.144

 

 

Other Expenses

7.079

6.370

4.251

 

 

TOTAL                                     (B)

35.881

30.284

19.395

 

 

 

 

 

 

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

1.051

0.953

0.578

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.447

0.386

0.325

 

 

 

 

 

 

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

0.604

0.567

0.253

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.210

0.184

0.109

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

0.394

0.383

0.144

 

 

 

 

 

Less

TAX                                                                  (I)

0.120

0.120

----

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

0.274

0.263

----

 

 

 

 

 

 

Earnings Per Share (Rs.10/-)

0.42

0.52

----

 


 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

0.74

0.84

----

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

1.07

1.23

0.72

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.04

2.66

1.21

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.09

0.04

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.53

0.62

0.61

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.78

1.76

1.89

 

 

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

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

No

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

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

No

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

 

UNSECURED LOAN

 

PARTICULAR

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

From Shareholder and Relatives

 

 

Unsecured Loan and Deposits

 

 

Anishaben Iqbalbhai Sorathia

0.350

0.345

Dharmendra H. Dave HUF

0.105

0.100

Dipikaben T. Mehta

0.070

0.060

P. M. Solanki

0.116

0.100

Rupranjan G. Sharma

0.130

0.400

Roshniben H. Bhalodia

0.100

0.240

Suchetaben R. Sharma

0.744

0.640

Sulemanbhai D. Sorathia

0.395

0.340

Tarangbhai S. Mehta

0.000

0.080

Hitesh M. Solanki HUF

0.100

0.000

Harjivanbhai P. Bhalodia HUF

0.276

0.000

 

 

 

TOTAL

2.386

2.305

 


 

VIEW INDEX OF CHARGES

 

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10469850

09/12/2013

690,000.00

Bank of India

Junagadh Branch, Janta Chowk, Junagadh, Gujarat - 
362001, INDIA

B93393205

2

80059168

17/06/2002

400,000.00

BANK OF INDIA

JANTA CHOWK, JUNAGADH, Gujarat - 362001, INDIA

-

3

80059167

19/10/2010 *

900,000.00

BANK OF INDIA

JANTA CHOWK, JUNAGADH, Gujarat - 362001, INDIA

A98328073

4

80059166

09/12/2013 *

1,690,000.00

Bank of India

Junagadh Branch, Janta Chowk, Junagadh, Gujarat - 
362001, INDIA

B93391092

 

 

 

FIXED ASSETS

 

·         Air Conditioner

·         Computer System

·         Electric Fications

·         Factory Building

·         Factory Land

·         Furniture and Fitting

·         Getz Car Vehicle

·         Indica Car Vehicle

·         Machinery

 

 


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.61.59

UK Pound

1

Rs.101.09

Euro

1

Rs.83.99

 

 

INFORMATION DETAILS

 

Information Gathered by :

NTR

 

 

Report Prepared by :

SNT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

29

 

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

 

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.