.

MIRA INFORM REPORT

 

 

Report Date :

29.01.2014

 

IDENTIFICATION DETAILS

 

Name :

HINDWARE HOME RETAIL PRIVATE LIMITED  (w.e.f.28.11.2006)

 

 

Formerly Known As :

SAMRIDHI SUPPLIERS PRIVATE LIMITED

 

 

Registered Office :

2 Red Cross Place, Kolkata – 700001, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

24.11.2005

 

 

Com. Reg. No.:

21 - 106307

 

 

Capital Investment / Paid-up Capital :

Rs.649.000 Millions

 

 

CIN No.:

[Company Identification No.]

U51109WB2005PTC106307

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALH03084E

 

 

PAN No.:

[Permanent Account No.]

AAKCS0434P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Retailer of Home Furnishing.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (41)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 854000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a 100% subsidiary of HSIL Limited and is engaged in the business of retailing in home furniture under the brand name ‘ Evok’

 

It is an established company having satisfactory track record.

 

There appears accumulated loss recorded by the company.

 

However, capital base of the company appears to be sound.

 

The rating takes into consideration the unconditional and irrevocable guarantee provided by HSIL Limited.

 

Trade relations are reported to be decent. Business is active. Payments are reported to be usually correct.

 

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 – December 1, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Fund based working capital A+ (SO)

Rating Explanation

Have adequate degree of safety and carry low credit risk.

Date

March, 2013

 

 

Rating Agency Name

ICRA

Rating

Non fund based limits A1+ (SO)

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

March, 2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

2 Red Cross Place, Kolkata – 700001, West Bengal, India

Tel. No.:

91-33-22487406/22487407

Fax No.:

91-33-22487045

E-Mail :

ngoenka@hindware.co.in

hsilkolsale@hindware.co.in

Website :

www.hindwarehomes.com

 

 

Store:

Plot No. M 54, 1st Floor, Greater Kailash – 2, New Delhi – 110048, India

 

 

Corporate Office:

Unit No. 301-302, III Floor, Park Centra, Sector 30, N.H-8, Gurgaon - 122001, Haryana, India

Tel. No.:

91-124-4779200/9201

Fax No.:

91-124-4292898/4292899

E-Mail :

delhi@hindware.co.in

 

 

Regional Offices:

Located at:

 

·         Mumbai

·         Bangalore

·         Chennai

·         Ernakilam

·         Secunderabad

·         Pune

·         Ahmedabad

·         Bhubaneswar

·         Chandigarh

·         Ghaziabad

·         Guwahati

·         Indore

·         Jaipur

·         Lucknow

·         Ranchi

 

 

DIRECTORS

 

As on 28.09.2013

 

Name :

Mr. Sandip Somany

Designation :

Director

Address :

B 5/12, Safdarjung Enc, New Delhi – 110029, India

Date of Birth/Age :

16.12.1963

Date of Appointment :

28.09.2006

Voter Id No.:

DL/02/009/027291

DIN No.:

00053597

 

 

Name :

Mr. Sumita Somay

Designation :

Whole-time Director

Address :

B 5/12, Safdarjung Enc, New Delhi – 110029, India

Date of Birth/Age :

25.09.1966

Date of Appointment :

07.05.2008

Voter Id No.:

DL/02/009/027150

DIN No.:

00133612

 

 

Name :

Mr. Girdhari Lal Sultania

Designation :

Director

Address :

2 Rowland Road, Kolkata – 700020, West Bengal, India

Date of Birth/Age :

16.10.1945

Date of Appointment :

28.09.2006

Voter Id No.:

DWK 1170166

DIN No.:

00060931

 

 

Name :

Mr. Niranjan Kumar Goenka

Designation :

Director

Address :

38A Kashi Mitra Ghat, Street, Kolkata – 700003, West Bengal, India

Date of Birth/Age :

05.02.1965

Date of Appointment :

28.09.2006

Voter Id No.:

FLG 2067460

DIN No.:

00060864

 

 

Name :

Mr. Ram Babu Kabra

Designation :

Director

Address :

HSIL Limited, Bahadurgarh, Rohtak – 124507, Haryana, India

Date of Birth/Age :

09.07.1958

Date of Appointment :

10.05.2010

Voter Id No.:

HR/04/137/288538

DIN No.:

00021886

 

 

KEY EXECUTIVES

 

Name :

Ms. Deepika Chowdhary

Designation :

Secretary

Address :

3019, Mohalla Dassan Charkhewalan, Delhi – 110006, India

Date of Birth/Age :

19.11.1988

Date of Appointment :

01.10.2012

PAN No.:

ATAPC4043Q

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 28.09.2013

 

Names of Shareholders (Equity Shareholders)

No. of Shares

Sultania Lal Girdhari

1

HSIL Limited, India

21999997

Niranjan Kumar Goenka

1

Radhey Ahyam Sharma

1

 

 

Total

22000000

 

 

Names of Shareholders (Preference Shareholders)

No. of Shares

HSIL Limited, India

4290000

 

 

Total

4290000

 

As on 28.09.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Bodies corporate

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Retailer of Home Furnishing.

 

 

Products :

Item Code No. (ITC Code)

Product Description

94036000

Wooden Furniture

 

 

Brand Names :

EVOK

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         HDFC Bank Limited, Kolkata – 700001, West Bengal, India

·         Central Bank of India, Parliament Street Branch, Jeeva Tara Building, Parliament Street, New Delhi – 110001, India

·         Standard Chartered Bank, Credit Documentation Unit, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001, India

·         Citi Bank N.A., Jeevan Vihar, 3 Sansad Marg, New Delhi – 110001, India

 

 

Facilities :

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

Rupee term loan from bank

82.928

78.997

 

 

 

SHORT TERM BORROWINGS

 

 

Working capital loans from bank

165.160

134.777

 

 

 

Total

248.088

213.774

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Walker Chandiok and Company

Chartered Accountants

Address :

L 41 Connuaght Circus New Delhi – 110001, India

PAN.:

AAAFW4298E

 

 

Holding Company  :

HSIL Limited

 


 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25000000

Equity Shares

Rs.10/- each

Rs.250.000 Millions

7500000

Preference Shares

Rs.100/- each

Rs.750.000 Millions

 

 

 

 

 

Total

 

Rs.1000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

22000000

Equity Shares

Rs.10/- each

Rs.220.000 Millions

4290000

Preference Shares

Rs.100/- each

Rs.429.000 Millions

 

 

 

 

 

Total

 

Rs.649.000 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

649.000

420.000

220.000

(b) Reserves & Surplus

(435.435)

(248.480)

(78.184)

(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)

213.565

171.520

141.816

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

82.928

78.997

41.666

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.765

3.486

3.215

(d) long-term provisions

4.084

3.774

2.023

Total Non-current Liabilities (3)

87.777

86.257

46.904

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

165.160

134.777

59.585

(b) Trade payables

90.702

68.432

43.919

(c) Other current liabilities

168.706

136.994

69.183

(d) Short-term provisions

0.433

0.108

0.093

Total Current Liabilities (4)

425.001

340.311

172.780

 

 

 

 

TOTAL

726.343

598.088

361.500

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

275.919

270.759

144.787

(ii) Intangible Assets

4.484

6.764

6.890

(iii) Capital work-in-progress

5.835

1.121

0.870

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

42.274

36.348

20.585

(e) Other Non-current assets

2.920

6.926

6.351

Total Non-Current Assets

331.432

321.918

179.483

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

330.980

219.430

133.589

(c) Trade receivables

17.251

9.317

25.740

(d) Cash and cash equivalents

23.158

13.107

6.795

(e) Short-term loans and advances

23.522

34.316

15.893

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

394.911

276.170

182.017

 

 

 

 

TOTAL

726.343

598.088

361.500

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

 

31.03.2012

31.03.2011

 

SALES

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

NA

NA

NA

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

NA

NA

NA

 

 

 

 

 

Less

TAX                                                                 

NA

NA

NA

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

(186.955)

(170.296)

(87.035)

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(7.11)

(6.48)

(3.31)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Debt Equity Ratio

(Total Debt/Networth)

 

1.16

1.25

0.71

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.93

0.81

1.05

 

 

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

No

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

Yes

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

10471875

10/12/2013

100,000,000.00

Standard Chartered Bank

CREDIT DOCUMENTATION UNIT, NARAIN MANZIL, 23 BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA

B94124542

2

10333872

10/01/2012

150,000,000.00

CENTRAL BANK OF INDIA

PARLIAMENT STREET BRANCH, JEEVAN TARA BUILDING, PARLIAMENT STREET, NEW DELHI, Delhi - 110001, INDIA

B31401003

3

10187534

20/09/2013 *

355,000,000.00

Central Bank Of India

Parliament Street Branch,Jeevan Tara Building, Parliament Street ARLIAMENT STREET, NEW DELHI, New Delhi, Delhi - 110001, INDIA

B85562288

4

10186890

03/11/2009

88,000,000.00

CENTRAL BANK OF INDIA

JEEVAN TARA BUILDING, PARLIAMENT STREET, NEW DELHI, Delhi - 110001, INDIA

A73705170

 

* Date of charge modification

 

 

OPERATIONS

 

The Company is a wholly owned subsidiary of HSIL Limited established to diversify the group into the total Home Solutions Enterprise with its foray into the high potential Home Interiors sector in India under the brand name EVOK.

 

The core vision of the Company is to be the first choice partner of customers aspiring for value for style Home Interior solutions and operates in the Retail as well as Institutional segments.

 

After setting up 17 stores in just over two years, the company entered into the consolidation phase. During financial year 2012-13, the company redefined its merchandising and marketing strategy in line with changing consumer preferences. Evok has uniquely positioned itself to offer solidwood furniture which is acceptable to modern young customers as it blends the strength and durability of solid wood with trendy and modern designs.

 

Two new Mega Stores were successfully setup by the Company at prime customer catchment market locations in Delhi. The Company continued to be among the largest organized sector retail chain of Home Interior Stores in North-India. All the new Mega Stores conformed to optimized format workings of 8000 to 12000 sq. ft. size and revised retail merchandise category mix, based on experience curve of our operations. These large format flagship stores offer end to end single window solutions for Home Interior needs ranging from Interior design services, Living concepts, wide range products, turnkey installation services and post care services. The comprehensive product category range includes Home Furniture, Soft Furnishings, Home Decor, Modular Kitchens, Bath, Lighting, Flooring, Home Organization and accessories with a population of more than 20,000 world class products sourced and aggregated globally.

 

Besides the Mega Store retail format, the Company also successfully operated two super-specialty Kitchen-Bath-Interiors retail formats this year. The Company also pursued and commenced the SIS (Shop-in-Shop) retail format opportunities, and entered into a strategic relationship with an established large retailer currently operates 6 shop in shop under this format. In addition to this, company is also planning to launch franchisee business for modular kitchens, which would cover major tier-1 and tier 2 cities where the infrastructure development has been on a rise.

 

The Projects and Institutional Division established to service the architects, builders, corporate and institutional community, had sluggish results due to multiple challenges on the markets front. The Company believes this Division to be a strong business growth engine, devoid of retail real estate needs, and is in the process of investing right resourcing for this vertical.

 

The Company further enhanced its capability in developing an extensive global supplier base for its operations and improved ERP systems, processes and infrastructure. The new expanded National Distribution Centre was setup at Bhiwandi, Mumbai and a lot of initiatives are being taken to improvise the pan-India supply chain efficiencies. Investments were effectively utilized for building and promoting the exciting brand of the company EVOK and propagating it to be the icon for Home Fashion retail in India.

 

While in the year Topline grew well and most stores become operationally profitable, the Company bottom line was under adverse pressure due to the impact of Rupee exchange rate affecting gross margins, rising inflationary Costs and Service tax liabilities on rented properties. Considering sluggish market environment and adversities faced by the Retail sector overall, the Company has embarked on the critical project of Cost reduction and optimization in order to bring about better operational efficiencies and balance the same with the Revenue structures.

 

The Company is completely focused on significant revenue escalation through its existing and upcoming/proposed retail stores and the projects division next year, as well as control operating costs with effective budgeting and control systems. The Company expects to deliver significant long term value to the Group operations.

 

 

FIXED ASSETS

 

·         Vehicle

·         Air Conditioner

·         Office Equipments

·         Computers

·         Furniture and Fittings

·         Furniture and Fitting, Shop

·         Leasehold Improvements

·         Plant Machinery

·         Tools

 


 

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.62.99

UK Pound

1

Rs.104.61

Euro

1

Rs.86.17

 

 

INFORMATION DETAILS

 

Report Prepared by :

ANK

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

2

--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

 

41

 

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.