MIRA INFORM REPORT

 

 

Report Date :

25.01.2014

 

IDENTIFICATION DETAILS

 

Name :

VARSHA CORPORATION LIMITED

 

 

Registered Office :

‘Varsha’, 13, Adarsh Society, Ramchandra Lane Extension, Malad (West), Mumbai – 400 064, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

26.12.2000

 

 

Com. Reg. No.:

11-130217

 

 

Capital Investment / Paid-up Capital :

Rs.150.000 millions

 

 

CIN No.:

[Company Identification No.]

U24134MH2000PLC130217

 

 

PAN No.:

[Permanent Account No.]

AABCV2293E

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Importer and Trader of Plastic Raw Material and Chemical Fertilizers.

 

 

No. of Employees :

Approximately 8 (In Office)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1044000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having moderate track record.

 

Profitability of the company appears to be low.

 

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

 

The company can be considered for business dealings with some caution.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

INDIAN ECONOMIC OVERVIEW

 

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

Cash Credit Facility: BB (Withdrawn)

Rating Explanation

Inadequate credit quality and high credit risk.

Date

March, 2012

 

 

Rating Agency Name

ICRA 

Rating

Short Term Non Fund Based Limit: A4 (Withdrawn)

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

March, 2012

 

 

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. Anil Kumar Mehta

Designation :

Chartered Accountant

Contact No.:

91-9323199315

Date :

24.01.2014

 

 

LOCATIONS

 

Registered Office :

‘Varsha’, 13, Adarsh Society, Ramchandra Lane Extension, Malad (West), Mumbai – 400 064, Maharashtra, India

Tel. No.:

91-22-28812336/ 7/ 8/ 9/ 67614300/ 67614335

Mobile No.:

91-9820000349 (Mr. Shirish Jain)

91-9323199315 (Mr. Anil Kumar Mehta) 

Fax No.:

91-22-28812340

E-Mail :

varshacorporation@gmail.com

varsha@bom3.vsnl.net.in

shrish349@rediffmail.com

cmd@varsha-group.com

info@varsha-group.com

Website :

www.varsha-group.com

Area :

7500 sq. ft.

Location :

Owned

 

 

Warehouse :

Located at:

 

·         Bhiwandi

Location :

Rented

 

 

DIRECTORS

 

AS ON 22.07.2013

 

Name :

Mr. Shantilal Javerchand Jain

Designation :

Director

Address :

‘Varsha’, 13, Adarsh Society, Ramchandra Lane Extension, Malad (West), Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

30.12.1947

Qualification :

C.A (Inter)

Date of Appointment :

21.09.2005

DIN No.:

00089873

PAN No.:

AAEPJ8434B

 

 

Name :

Mr. Shirish Shantilal Jain

Designation :

Director

Address :

‘Varsha’, 13, Adarsh Society, Ramchandra Lane Extension, Malad (West), Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

07.08.1974

Qualification :

Diploma in Computer

Date of Appointment :

21.09.2005

DIN No.:

00089963

PAN No.:

AABPJ7494G

 

 

Name :

Indra Shantilal Jain

Designation :

Director

Address :

‘Varsha’, 13, Adarsh Society, Ramchandra Lane Extension, Malad (West), Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

05.11.1949

Qualification :

S.S.C.

Date of Appointment :

21.09.2005

DIN No.:

00090051

 

 

Name :

Mrs. Lata Dinesh Singhi

Designation :

Director

Address :

‘Varsha’, 13, Adarsh Society, Ramchandra Lane Extension, Malad (West), Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

28.12.1971

Qualification :

M. Com

Date of Appointment :

01.01.2010

DIN No.:

00090122

PAN No.:

AAQPS0333J

 

 

MAJOR SHAREHOLDERS

 

AS ON 22.07.2013

 

Names of Shareholders

 

No. of Shares

 

Shantilal Javerchand Jain

 

558090

Shirish Shantilal Jain

 

128044

Varsha Shantilal Jain

 

93232

Ranjan Amrit Jain

 

69810

Indra Shantilal Jain

 

52041

Lata Shantilal Singhi

 

83743

Shantilal J. Jain - HUF

 

7340

Jaravi Javerchand Jain

 

7700

United Exports and Indentors Pte. Limited, Singapore

 

500000

Total

 

1500000

 

AS ON 22.07.2013

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

33.33

Directors or relatives of directors

 

66.67

Total

 

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Importer and Trader of Plastic Raw Material and Chemical Fertilizers.

 

 

Products :

Item Code No. (ITC Code)

99611926

Product Description

Basic Precious Metals (Plastic Raw Material, Gold, Silver)

 

 

Imports :

 

Products :

Plastic Raw Material and Chemical Fertilizers

Countries :

·         Dubai

·         USA

·         Hong Kong

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Suppliers :

·         Aspire Incorporation, Borivali

 

 

Customers :

Wholesalers and Retailers

 

·         Midas Marketing Inc., Malad

 

 

No. of Employees :

Approximately 8 (In Office)

 

 

Bankers :

·         State Bank of India, Industrial Finance Branch, Snehal Chambers, Telli Galli, Andheri (East), Mumbai – 400 069, Maharashtra, India

·         State Bank of India, Bullion Branch

·         ICICI Bank Limited, Malad (West), Mumbai, Maharashtra, India

·         State Bank of India, Mindspace Branch, Link Road, Malad (West), Mumbai – 400 064, Maharashtra, India

·         Kotak Mahindra Bank Limited

·         HDFC Bank Limited, Malad (West), Mumbai, Maharashtra, India

·         Indian Overseas Bank, Santacruz, Mumbai, Maharashtra, India

·         Dhanlaxmi Bank Limited, Ahmedabad, Gujarat, India

·         Axis Bank Limited, Goregaon (West), Mumbai, Maharashtra, India

·         Axis Bank Limited, New Marine Lines, Mumbai, Maharashtra, India

·         Axis Bank Limited, S.V. Road, Malad (West), Mumbai, Maharashtra, India

 

 

Facilities :

Total Facility: Rs.600.000 millions (From State Bank of India, Industrial Finance Branch)

 

Secured Loans

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

Working Capital Loan

 

 

From Bank

 

 

State Bank of India-Cash Credit Account

(Against Hypothecation of Raw Materials and Receivables: and Equitable Mortgage of Immovable Properties. The above loan has been guaranteed by the directors of the company in their personal capacity.)

354.486

354.616

Vehicle Loan

 

 

Kotak Mahindra Prime Limited-Towards Car Loan

(Against Hypothecation of Vehicle)

0.430

0.643

ICICI Bank Limited-Towards Car Loan

(Against Hypothecation of Vehicle)

0.364

0.521

Total

355.280

355.780

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Anil Kumar Mehta

Chartered Accountant

Address :

A-5, Twinkle Star Apartments, Evershine Complex, 100 Feet Road, Off Ambadi Road, Vasai (West), Thane – 401 202, Maharashtra, India

Tel. No.:

91-22-67614300

PAN No.:

AAGPM4732P

 

 

Group Companies :

·         India Gold Limited

·         Sharad Construction Co.

·         Varsha Constructions Limited

·         Varsha Commodities Limited

·         Varsha Ventures Limited

·         LCD Lifestyle Clinic

·         VHR Mentors Private Limited

·         Patients Aid and Research Trust

·         Shri Nopaji Lakhmaji Charitable Trust

 

 

Subsidiaries :

·         Amstrin Healthcare Limited, India (CIN No.: U18101MH1995PLC092877)

·         Euclid Pharmaceuticals Limited, India (CIN No.: U17120MH1990PLC058963)

·         Million Bullion Biz. Private Limited, India (CIN No.: U63090MH1990PTC058225)

·         Varsha Mines and Granites Limited (CIN No.: U13200MH1993PLC073993)

·         Varsha Technologies Limited, India (CIN No.: U72900MH2000PLC129971)

 

 

 

 

 

 

 

 

CAPITAL STRUCTURE

 

AS ON 22.07.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1500000

Equity Shares

Rs.100/- each

Rs.150.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1500000

Equity Shares

Rs.100/- each

Rs.150.000 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

150.000

150.000

150.000

(b) Reserves & Surplus

111.030

94.640

69.256

(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)

261.030

244.640

219.256

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

0.000

0.000

0.000

(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)

0.000

0.000

0.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

459.830

412.480

446.566

(b) Trade payables

280.920

335.996

627.258

(c) Other current liabilities

19.930

40.991

4.178

(d) Short-term provisions

9.500

10.700

9.000

Total Current Liabilities (4)

770.180

800.167

1087.002

 

 

 

 

TOTAL

1031.210

1044.807

1306.258

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1.174

1.459

1.871

(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

32.496

32.495

0.000

(c) Deferred tax assets (net)

0.322

0.165

0.027

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

33.992

34.119

1.898

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

102.404

46.338

140.761

(c) Trade receivables

817.646

868.874

745.106

(d) Cash and cash equivalents

35.387

35.968

309.897

(e) Short-term loans and advances

41.781

59.508

108.596

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

997.218

1010.688

1304.360

 

 

 

 

TOTAL

1031.210

1044.807

1306.258

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

5018.891

5721.673

3794.699

 

 

Other Income

9.035

26.019

29.531

 

 

TOTAL                                     (A)

5027.926

5747.692

3824.230

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of stock-in-trade

4970.345

5528.927

3625.947

 

 

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

(56.065)

94.423

70.848

 

 

Employee benefit expense

2.260

2.520

2.194

 

 

Other expenses

16.184

13.344

20.806

 

 

TOTAL                                     (B)

4932.724

5639.214

3719.795

 

 

 

 

 

Less

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

95.202

108.478

104.435

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

66.738

71.945

63.219

 

 

 

 

 

 

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

28.464

36.533

41.216

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.368

0.485

0.621

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

28.096

36.048

40.595

 

 

 

 

 

Less

TAX                                                                  (H)

9.500

10.700

9.000

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

18.596

25.348

31.595

 

 

 

 

 

Add

BROUGHT FORWARD PAST PROFITS / LOSS

69.640

44.256

14.940

 

 

 

 

 

Add

Deferred Tax Asset

0.157

0.137

0.090

Add/ Less

Excess/ (Under) Provision Written Off / Back

(2.363)

(0.101)

(2.369)

 

 

 

 

 

 

AMOUNT

86.030

69.640

44.256

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

Nil

0.075

0.000

 

 

 

 

 

 

VALUE OF IMPORTS ON CIF BASIS

NA

472.360

716.797

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

12.40

16.90

21.06

 

Expected Sales (2013-2014): Rs.3000.000 millions (Due to Market Condition)

 

The above information has been parted by Mr. Anil K Mehta.

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

0.37

0.44

0.83

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.56

0.63

1.07

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.81

3.56

3.11

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.11

0.15

0.19

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.76

1.69

2.04

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.29

1.26

1.20

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Current Maturities of Long Term Debt: Not Available

 

 

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

Yes

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%

Yes

14]

Estimation for coming financial year

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

LITIGATION DETAILS:

 

CASE DETAILS

 

Bench:- Bombay

 

Lodging No.:- APPL/575/2010

 

Filing Date:- 24/08/2010

 

Reg. No.:- APP/995/2010

Reg. Date:- 18/09/2010

 

Petitioner:- Arnav Corporation Limited

 

Respondent:- Varsha Corporation Limited

 

Petn.Adv.:- Sunil Chaturvedi

 

District:- Mumbai

 

Bench:- Division

 

Status:- Admitted(Unready)

 

Category:- Appeals

 

Last Date:- 29/09/2010

 

Stage:- Appeals for Admission

 

Last Coram:- Hon'ble Shri Justice P.B. Majmudar

Hon'ble Shri Justice Anoop V. Mohta

 

Under Section:- 433, 434

 

INDEX OF CHARGES:

 

S.

No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

80053852

13/12/2013 *

604,800,000.00

STATE BANK OF INDIA

INDUSTRIALS FINANCE BRANCH, NATRAJ, 1ST FLOOR, ANDHERI (EAST), MUMBAI, MAHARASHTRA - 400069, INDIA

B92978329

2

80001327

14/12/2007 *

450,000,000.00

STATE BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, S.V. ROAD, MALAD (WEST), MUMBAI, MAHARASHTRA - 400064, INDIA

A33766445

 

* Date of charge modification

 

Unsecured Loans

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

From Others

 

 

Directors

0.000

4.000

Firms

42.050

9.700

Others

62.500

43.000

Total

104.550

56.700

 

 

FIXED ASSETS:

 

·         Computer

·         EPBX-Telephone System

·         Sisper Vending Machine

·         Water Cooler

·         Photo Copier

·         Electric Weighing Machine

·         Panasonic Fax Machine

·         Card Scanner

·         Motor Car-Innova

·         Motor Car-Fiat Linea

·         Honda Activa

·         Camera

·         Fingerprint Machine


 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.18

UK Pound

1

Rs.103.38

Euro

1

Rs.85.09

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Report Prepared by :

SMN


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

DEFAULTERS

 

 

--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

--

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.