MIRA INFORM REPORT

 

 

Report Date :

27.01.2014

 

IDENTIFICATION DETAILS

 

Name :

VISION SPONGE IRON PRIVATE LIMITED

 

 

Registered Office :

227, A J C Bose Road, Anandlok, 3rd Floor, Kolkata – 700020, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.03.2002

 

 

Com. Reg. No.:

21-094315

 

 

Capital Investment / Paid-up Capital :

Rs. 65.073 Millions

 

 

CIN No.:

[Company Identification No.]

U94315WB2002PTC094315

 

 

PAN No.:

[Permanent Account No.]

AABCV4791R

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in the manufacture and sale of iron and steel products and generation of power. The Company is also engaged in financial sector transactions.

 

 

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 2700000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record.

 

The management has seen a better increase in its sales volume as well as net profitability during 2013. Financial position appears to be decent despite of slowdown witnessed by the steel industry in F.Y.2012.

 

The ratings also take into consideration the modest scale of operation volatility and scarcity associated with raw material.

 

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

 

In view of experienced promoters established relationship with suppliers and strategic location of the plants with proximity to the market, the subject 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

 

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

CRISIL

Rating

Long Term Rating = BB-

Rating Explanation

Moderate risk of default regarding timely servicing of payments

Date

05.12.2012

 

Rating Agency Name

CRISIL

Rating

Short Term Rating = A4+

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

05.12.2012

           

 

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.

 

LOCATIONS

 

Registered Office :

227, A J C Bose Road, Anandlok, 3rd Floor, Kolkata – 700020, West Bengal, India

Tel. No.:

91-33-22471180 / 22405487

Fax No.:

91-33-22405483 / 22834141

E-Mail :

accounts@visionsponge.com

sandeep@hotmail.com

visionsponge@yahoo.co.in

 

 

Factory :

Rakta, P.O. Madhukunda, District, Purulia, P.S. Santuri, West Bengal, India 

 

 

DIRECTORS

 

As on 30.09.2013

 

Name :

Mr. Sandeep Jhunjhunwala

Designation :

Director

Address :

12C, Chakraberia Road, North, Kolkata – 700020, West Bengal, India

Date of Birth/Age :

21.08.1971

Date of Appointment :

01.03.2002

DIN No.:

00606481

PAN No.:

ACTPJ6800E

Voter ID No.:

WB/23/146/267150

 

 

Name :

Mr. Shrigopal Jhunjhunwala

Designation :

Director

Address :

12C, Chakraberia Road, North, Kolkata – 700020, West Bengal, India

Date of Birth/Age :

30.04.1943

Date of Appointment :

01.03.2002

DIN No.:

00081429

Voter ID No.:

WB/23/146/267143

 

 

Name :

Mr. Siddhartha Jhunjhunwala

Designation :

Director

Address :

12C, Chakraberia Road, North, Kolkata – 700020, West Bengal, India

Date of Birth/Age :

17.10.1977

Date of Appointment :

02.05.2008

DIN No.:

00606607

PAN No.:

ACRPJ8641F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2013

 

SHAREHOLDING DETAILS FILE ATTACHED

 

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Bodies corporate

34.00

Directors or relatives of Directors

66.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the manufacture and sale of iron and steel products and generation of power. The Company is also engaged in financial sector transactions.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         Bank of India, Kolkata Corporate Banking Branch,, 5, B.T. M. Sarani,, Kolkata - 700001, West Bengal, India

 

·         State Bank of India, Commercial Branch, Kolkata, 24, Park Street, Kolkata - 700016, West Bengal, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Long-term borrowings

 

 

Loans repayable on demand

310.028

469.931

Short-term borrowings

 

 

Rupee term loans from banks

696.820

600.540

Total

1006.848

1070.471

 

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

R S P M and Company

Chartered Accountants

Address :

9, Lal Bazar, Street, Block-A, 1st Floor , Mercantile Building, Kolkata- 700001, West Bengal, India 

PAN No.:

AADFP3681K

 

 

Other Related Party :

Nirmal Viniyog Private Limited

 

 

CAPITAL STRUCTURE

 

As on 30.09.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7000000

Equity Shares

Rs.10/- each

Rs.70.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

6507250

Equity Shares

Rs.10/- each

Rs.65.073 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

65.073

61.598

61.598

(b) Reserves & Surplus

623.682

556.485

540.169

(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)

688.755

618.083

601.767

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

457.864

477.231

664.308

(b) Deferred tax liabilities (Net)

36.382

21.316

13.792

(c) Other long term liabilities

347.687

389.792

76.901

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

841.933

888.339

755.001

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

741.626

626.655

301.168

(b) Trade payables

102.153

19.379

5.051

(c) Other current liabilities

44.752

18.600

97.951

(d) Short-term provisions

27.343

31.843

31.443

Total Current Liabilities (4)

915.874

696.477

435.613

 

 

 

 

TOTAL

2446.562

2202.899

1792.381

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1153.754

1187.866

279.306

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

38.286

731.773

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.180

0.180

0.438

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

37.950

7.655

40.071

(e) Other Non-current assets

25.911

8.239

7.150

Total Non-Current Assets

1217.795

1242.226

1058.738

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

989.352

519.768

279.447

(c) Trade receivables

109.571

151.924

103.962

(d) Cash and cash equivalents

14.082

28.140

50.041

(e) Short-term loans and advances

115.762

260.841

193.258

(f) Other current assets

0.000

0.000

106.935

Total Current Assets

1228.767

960.673

733.643

 

 

 

 

TOTAL

2446.562

2202.899

1792.381

 


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

1992.941

1345.421

946.283

 

 

Other Income

 

 

 

 

 

TOTAL                        

1992.941

1345.421

946.283

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Office Expenses

 

 

 

Administrative Expenses

1862.553

1235.953

852.160

 

 

Advertising Expenses

 

 

 

 

 

TOTAL                        

1862.553

1235.953

852.160

 

 

 

 

 

 

PROFIT BEFORE DEPRECIATION AND OTHER NON-CASH EXPENSES

130.388

109.468

94.123

 

 

 

 

 

Less/ Add

DEPRECIATION AND OTHER NON-CASH EXPENSES

88.224

85.662

47.636

 

 

 

 

 

 

PROFIT BEFORE TAX

42.164

23.806

46.487

 

 

 

 

 

Less

TAX                             

11.454

7.490

14.704

 

 

 

 

 

 

PROFIT AFTER TAX

30.710

16.316

31.783

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

164.157

147.841

116.058

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

194.867

164.157

147.841

 

 

 

 

 

 

Earnings Per Share (Rs.)

6.48

2.65

5.16

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

1.54

1.21

3.36

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.72

1.10

4.38

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.04

0.08

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.74

1.79

1.60

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.34

1.38

1.68

 

 

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

Yes

33]

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

Yes

34]

External Agency Rating, if available

Yes

 

 

CORPORATE INFORMATION

 

Subject is a private limited company under the provisions of the Companies Act, 1956. The company is engaged in the manufacture and sale of iron and steel products, generation of power and commission agent. The Company is also engaged in financial sector transactions.

 

 

UNSECURED LOAN

Rs. In Millions

Particular

As on

31.03.2013

As on

31.03.2012

Long-term borrowings

 

 

Other loans and advances

147.836

0.000

Loans and advances from related parties

0.000

7.300

Short-term borrowings

 

 

Loans repayable on demand

44.806

26.115

Total

192.642

33.415

 

 

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

 

Charge Holder

Address

Service Request Number (SRN)

1

10449686

28/08/2013

65,000,000.00

STATE BANK OF HYDERABAD

PARK STREET BRANCH, PODDAR POINT (1ST FLOOR), 113, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B85234227

2

10443060

08/08/2013

150,000,000.00

STATE BANK OF TRAVANCORE

KIDDERPORE BRANCH, 16, DR. SUDHIR BASU ROAD, KIDDERPORE, KOLKATA, WEST BENGAL - 700023, INDIA

B82128778

3

10342089

01/03/2012

80,000,000.00

BANK OF BARODA

CAMAC STREET BRANCH, 3B,CAMAC STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B34995571

4

10342724

29/02/2012

50,000,000.00

INDIAN OVERSEAS BANK

INTERNATIONAL BUSINESS BRANCH, 2, WOOD STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B35243963

5

10339819

09/02/2012

100,000,000.00

PUNJAB NATIONAL BANK

SHAKESPEARE SARANI BRANCH, 52A, SHAKESPEARE SARANI, KOLKATA, WEST BENGAL - 700017, INDIA

B33970732

6

10256247

08/12/2010

780,000,000.00

STATE BANK OF INDIA (LEAD BANK )

COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B02038438

7

10234437

06/01/2014 *

880,000,000.00

STATE BANK OF INDIA (LEAD BANK)

COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B93837474

8

10149624

17/03/2009

175,000,000.00

INDIAN OVERSEAS BANK

INTERNATIONAL BUSINESS BRANCH, 2, WOOD STREET, KOLKATA, WEST BENGAL - 700016, INDIA

A58815994

9

10134081

12/12/2008

150,000,000.00

PUNJAB NATIONAL BANK

SHAKESPEARE SARANI, 52A, SHAKESPEARE SARANI, KOLKATA, WEST BENGAL - 700017, INDIA

A53036901

10

10134315

06/01/2014 *

1,660,000,000.00

STATE BANK OF INDIA (LEAD BANK)

COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B93838159

 

* Date of charge modification

 

 

FIXED ASSETS

 

·         Land

·         Buildings

·         Factory Building

·         Plant and Equipment

·         Vehicles

 

AS PER WEBSITE 

 

30 SPONGE IRON PLANTS SHUT OPS IN KARNATAKA

 

Prashant Mukherjee | New Delhi | Updated: Sep 21 2013

 

Over 30 sponge iron plants in Karnataka have shut operations due to shortage of iron ore impacting small and medium steel companies such as Kalyani Steel, Sathavahana Ispat and Kirloskar Ferrous.

 

According to the Karnataka Iron and Steel Manufacturers Association, almost half of the 60 sponge iron plants have shut down and several others have suspended operations partially as mining ban in the state has crippled mining operations and created a shortage of raw material for steel units.

 

Kalyani Steel MD RK Goyal said, “It is getting very difficult for us. Only seven or eight mines are operational. It will take at least two years for all the mines to be operational.” Moreover, because of high input costs and non-availability of raw material, some steel producers are forced to underutilise their capacities as they, too, stare at a possible shutdown of their operations in the near future.

 

Sathavahana Ispat reported a net loss of Rs.440.700 Millions in the June 2013 quarter.

 

According to experts, profitability margins of the steel-sponge iron companies operating out of Karnataka are expected to spiral downwards due to increased procurement costs and lower capacity utilisation due to non-availability of iron ore, which may not even cover the overhead costs fully.

 

The mining operations in Karnataka resumed recently after a year-long ban imposed by the Supreme Court. In Karnataka, out of the 57 mines approved, only 14 mines are operating with an annual production of 13.77 mt against the total demand of around 35 mt.

 

Over the last few years, there has been a constant decline in production and exports of iron ore in the country.

 

The production has come down from 219 mt in the year 2010 to 170 mt in the year 2012 and exports have fallen 117 mt during 2010 to 62 mt in 2012.

 

The Supreme Court in April allowed resumption of mining activities in 90 mines in Bellary, Tumkur and Chitradurga districts of Karnataka.

 

A forest bench of Justices Aftab Alam, KS Radhakrishnan and Ranjan Gogoi allowed reopening of 27 'A' category and 63 'B' category mines but cancelled 49 leases of Categpry ‘C’ mines.

 

 

SPONGE IRON MAKERS FACE SHUTDOWN ON CUT IN OFFTAKE BY STEEL COS

 

Prashant Mukherjee | New Delhi | Updated: Nov 09 2013

 

Major producers of sponge iron like Welspun Maxsteel and Tata Sponge Iron are facing closure due to reduced offtake by the steel industry, which is struggling with a sluggish demand and restricted availability of vital inputs like iron ore, thermal coal and natural gas.

 

Environment-related issues are adding to the woes of the Rs 40000.000 Millions industry.

 

Sponge iron is an important material used for steel making by smaller mills eliminating the need to use expensive and scarce thermal coal and gas.

 

“We have requested the government to provide iron ore at concessional rates and try and allocate mines. Most smaller capacity plants are performing badly with frequent break down leading to increase in maintenance cost with capital repairs of equipments. Most of these plant are running at a capacity of only 50%,” said V R Sharma, chairman, Sponge Iron Manufacturers Association (SIMA).

 

India is the largest sponge iron producer in the world for last 11 consecutive years. At present, India contributes 33% of global sponge iron production.

 

The non-availability of iron ore and coking coal has hit domestic sponge iron manufacturers hard. Karnataka and Odisha, which account for about 37% of the total installed capacity of sponge iron in India, have been affected by ban on iron ore mining and other restrictions imposed on them. As a result, sponge iron production in these states has declined considerably.

 

The induction furnaces uses sponge iron to make steel. Sponge iron makers are having to pay exorbitant electricity charges due to the practice of discoms cross subsidising agriculture sector electricity consumers with support from industrial and commercial consumers.

 

One important step that could help the sponge iron industry is lowering electricity tariffs. At present, states such as Maharashtra, Punjab and Tamil Nadu charge around Rs7/unit, while Odisha and Chhattisgarh charge around Rs5/unit.

 

“Prime Minister's vision for achieving 300 million tonnes of steel capacity cannot be achieved if sponge iron units are not encouraged to create capacities to support the steel plants. Rise in power and fuel expenses and transportation costs further pushed up the manufacturing cost of sponge iron companies,” Essar steel spokesperson said.

 

Tata Sponge Iron with a production capacity of 4 lakh tonnes per annum reported a 39% drop in their standalone net profit at Rs18.04 crore for the quarter ended June 30 on the back of lower revenues.

 


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

 

Report Prepared by :

NTH

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--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

NO

--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.