MIRA INFORM REPORT

 

 

Report Date :

01.10.2014

 

IDENTIFICATION DETAILS

 

Name :

WINCO VALVES PRIVATE LIMITED

 

 

Registered Office :

D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad – 380013, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

26.12.1996

 

 

Com. Reg. No.:

04-031395

 

 

Capital Investment / Paid-up Capital :

Rs. 3.500 millions

 

 

CIN No.:

[Company Identification No.]

U29120GJ1996PTC031395

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMW00019F

 

 

PAN No.:

[Permanent Account No.]

AAACW1932A

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Fire Fighting Equipments

 

 

No. of Employees :

30 (10 in office + 20 in factory) (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (28)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 60000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

The rating is constrained on account of company’s moderate financial risk profile and low profitability levels of the company.

 

However, trade relations are fair. Business is active. Payment are reported to be 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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

N E W S

 

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

 

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

 

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

 

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

 

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

 

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

 

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

 

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

 

 

 

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 31-03-2014.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Yash Majithia

Designation :

Director

Contact No.:

91-9824045170

Date :

25.09.2014

 

 

LOCATIONS

 

Registered Office :

D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad-380013, Gujarat, India

Tel. No.:

91-2764-286093/ 286092

Mobile No.:

91-9824045170 (Mr. Yash Majithia)

Fax No.:

91-2764-286092

E-Mail :

yash@wincofire.in

pkmoffice@gmail.com

Website :

http://www.wincofire.in

Area :

4000 Sq. yards

Location :

Owned

 

 

Factory :

Plot No. 542, Rakanpur, Taluka Kalol, Gandhinagar–382721, Gujarat, India

Location :

Owned

 

 

DIRECTORS

 

As on 30.09.2013

 

Name :

Mr. Hemendra Mehta

Designation :

Director

Address :

D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad – 380013, Gujarat, India

Date of Birth/Age :

03.06.1957

Date of Appointment :

26.12.1996

DIN No.:

00147174

 

 

Name :

Mr. Prakash Majithia

Designation :

Director

Address :

5, HAsmukhbhai Bunglow, Nr. Rajpath Club, Ahmedabad - 380054 Gujarat, India

Date of Birth/Age :

25.10.1954

Date of Appointment :

26.12.1996

DIN No.:

00147091

 

 

Name :

Mr. Yash Majithia

Designation :

Director

Address :

5, Hasmukhbhai Bunglow, Near Rajpath Club, Ahmedabad-380054, Gujarat, India

Date of Birth/Age :

27.03.1981

Date of Appointment :

01.10.2009

DIN No.:

02946705

 

 

Name :

Mr. Bhavik Mehta

Designation :

Director

Address :

D/402, Amrapali, Apartment, Sankur Road, Naranpura, Ahmedabad – 380013, Gujarat, India

Date of Birth/Age :

12.04.1985

Date of Appointment :

01.10.2009

DIN No.:

02946763

 

 

KEY EXECUTIVES

 

Name :

MBL and Company

Designation :

Company Secretary

Address :

1, Shivam Satellite Society, Opposite Ahmedabad Haat, Near Vastrapur Fountain, Vastrapur, Ahmedabad – 380015, Gujarat, India

Mobile No :

91-9924336200

 

 

MAJOR SHAREHOLDERS

 

As on 30.09.2013

 

Names of Shareholders

 

No. of Shares

Prakash Majithia

 

49648

Hemendra Mehta

 

99549

Shohaben Mehta

 

20100

Taraben Majithia

 

200

Yash Majithia

 

120150

Rukmaniben Mehta

 

100

Hemendra Mehta (HUF)

 

1

Bhavik Mehta

 

50250

Prakash Majithia (HUF)

 

1

Poonam Yash Majithia

 

5000

Sweta Bhavik Mehta

 

5000

Morarji Rajani

 

1

 

 

 

TOTAL

 

350000

 

 

As on 30.09.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Fire Fighting Equipments

 

 

GENERAL INFORMATION

 

Customers :

Wholesalers, Retailers, End Users, OEM’s and Others

 

 

No. of Employees :

30 (10 in office + 20 in factory) (Approximately)

 

 

Bankers :

·         Bank of Baroda, S.P. Colony, Naranpura, Ahmedabad-380013, Gujarat, India

·         HDFC Bank

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWING

 

 

Term Loan

 

 

From Bank

4.559

0.319

 

 

 

SHORT TERM BORROWING

 

 

From Bank Working Capital

14.571

9.755

Bill Discounting against prime bank L/C

4.935

1.555

Others

 

 

From Bank of Baroda against fixed deposit

0.005

0.250

 

 

 

Total

24.070

11.879

 

NOTES:

 

Nature of Security

Terms of Repayment

Bank of Baroda-Term Loan

Term Loan Amounting to Rs. 0.044 Millions (P. Y 0.179 Millions) is Secured by first exclusive charge by way of legal mortgage of Factory , Land, Building and Construction thereon situated at Plot No 542 , located at Rakanpur, Tal: Kalol belonging to Winco Valves Private Limited admeasuring 2033 Sq Mtrs. The entire advances to be covered by composite instrument of Hypothecation Agreement of all the Assets of the Firm like stock, Book Debts and Plant Machinery (All the facility to be further secured by first charge over entire machineries of the company existing as well as future and further Secured by Joint and several guarantee of Mr. Hemendra Mehta and Prakash Majithia

 

 

Repayable in 60 Monthly Installments of Rs. 0.083 Million Each commencing from November, 2008 and last installment due on September, 2013. Interest to be   servied on monthly basis on Application in the Account Rate of Int C.Y. 14.00% P.A.

 

Bank Of Baroda-Term Loan

Term Loan Ampunting To Rs. 4.833 Millions (P.Y Nil Millions) is Secured by First exclusive charge by way of legal mortgage of factory, Land, Building and construction thereon  situated at plot No. 542 Located.

located at Rakanpur, Tal: Kalol belonging to Winco Valves Private Limited admeasuring 2033 Sq Mtrs. The entire advances to be covered by composite instrument of Hypothecation Agreement of all the Assets of the Firm like stock, Book Debts and Plant Machinery (All the facility to be further secured by first charge over entire machineries of the company existing as well as future and further Secured by Joint and several guarantee of Mr. Hemendra Mehta and Prakash Majithia

 

Repayable in 60 Monthly Installments of Rs. 0.083 Million Each commencing from November, 2008 and last installment due on September, 2013. Interest to be   servied on monthly basis on Application in the Account Rate of Int C.Y. 14.00% P.A.

 

HDFC Bank -Polo Car Loan

Term Loan amounting to Rs. 0.119 Million (P.Y 0.307 Million)  is Secured by Hire Purchase of Vehicle

 

Loan shall be repaid by way of 36 Monthly installments of Rs. 0.017 Million each commencing from November, 2010 and last installment due on October, 2013 Rate of Interest is 9.66% p.a.

HDFC Bank-Toyota Corrola Altis Car Loan

Term Loan amounting to Rs. 1.080 Million (P.Y NIL Million)  is Secured by Hire Purchase of Vehicle

 

Loan shall be repaid by way of 36 Monthly installments of Rs. 0.041 Million each commencing from November, 2010 and last installment due on October, 2013 Rate of Interest is 10.50% p.a.

 

Working Capital Loan sectioned by Bank of Baroda amounting Rs. 15.000 Millions is Secured by first exclusive charge by way of equitable mortgage of property situated at Plot No 433/2 located at Rakanpur, Tal: Kalol, Dist: Gandhinagar and exclusive charge by way of Hypothecation of all Stocks and Book Debts/ Receivables, Plant and Machinery present as well as future and further secured by personal Guarantee of Directors

 

Bill discounting Facility is secured by Letter of BP undertaking and letter of pledge of Securities

 

 

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

P.K. Modi and Company

Chartered Accountant

Address :

A-411, Sfal Pegasus, Anand Nagar Road, Near Prahalad Nagar Garden, Satellite, Ahmedabad-380051, Gujarat, India

Tel. No.:

91-79-40065204

Fax No.:

91-79-40067203

E-Mail :

pkmoffice@gmail.com

pkmadvisory@yahoo.co.uk  

PAN No:

AAPPM5000R

 

 

CAPITAL STRUCTURE

 

As on 30.09.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

950000

Equity Shares

Rs.10/- each

Rs.9.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

350000

Equity Shares

Rs.10/- each

Rs.3.500 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

3.500

3.500

3.500

(b) Reserves & Surplus

11.508

10.773

10.086

(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)

15.008

14.273

13.586

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

21.330

13.528

11.041

(b) Deferred tax liabilities (Net)

0.098

0.075

0.117

(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)

21.428

13.603

11.158

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

19.511

11.560

12.189

(b) Trade payables

17.065

20.318

12.321

(c) Other current liabilities

3.139

3.425

2.634

(d) Short-term provisions

0.692

0.668

0.743

Total Current Liabilities (4)

40.407

35.971

27.887

 

 

 

 

TOTAL

76.843

63.847

52.631

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

16.221

11.024

11.465

(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

0.029

0.029

0.029

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

5.603

4.662

2.877

(e) Other Non-current assets

0.093

0.110

0.127

Total Non-Current Assets

21.946

15.825

14.498

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

10.769

11.029

10.804

(c) Trade receivables

39.400

32.228

22.789

(d) Cash and cash equivalents

3.073

3.322

3.149

(e) Short-term loans and advances

1.655

1.443

1.391

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

54.897

48.022

38.133

 

 

 

 

TOTAL

76.843

63.847

52.631

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

 

 

 

 

 

OPERATING INCOME              

99.929

90.881

92.420

 

 

 

 

 

Less

TOTAL EXPENSES

NA

NA

NA

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

7.372

6.270

5.880

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

3.741

3.272

3.161

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

3.631

2.998

2.719

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

2.553

1.907

1.959

 

 

 

 

 

 

PROFIT BEFORE TAX

1.078

1.091

0.760

 

 

 

 

 

Add

Prior Period Income

0.015

0.000

0.000

 

 

 

 

 

Less

TAX                                                                 

0.357

0.316

0.227

 

 

 

 

 

Less

Excess or Short Provision of IT

0.000

0.088

0.000

 

 

 

 

 

 

PROFIT AFTER TAX

0.736

0.687

0.533

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.10

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Return on Total Assets

(PBT/Total Assets}

(%)

1.40

1.71

1.44

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.07

0.08

0.06

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

2.72

1.76

1.71

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.36

1.34

1.37

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

3.500

3.500

3.500

Reserves & Surplus

10.086

10.773

11.508

Net worth

13.586

14.273

15.008

 

 

 

 

long-term borrowings

11.041

13.528

21.330

Short term borrowings

12.189

11.560

19.511

Total borrowings

23.230

25.088

40.841

Debt/Equity ratio

1.710

1.758

2.721

 

 

 

 

YEAR ON YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Operating Income

92.420

90.881

99.929

 

 

(1.665)

9.956

 

 

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Operating Income

92.420

90.881

99.929

Profit

0.760

1.091

1.078

 

0.82%

1.20%

1.08%

 

 

 

 

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

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

No

 

 

UNSECURED LOAN

(Rs. In Millions)

 

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWING

 

 

From Related Parties

16.771

13.209

 

 

 

Total

16.771

13.209

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10115466

13/07/2012 *

28,994,000.00

BANK OF BARODA

S.P. COLONY, NARANPURA, AHMEDABAD, Gujarat - 380013, INDIA

B44460616

2

10115464

13/07/2012 *

28,994,000.00

BANK OF BARODA

S.P. COLONY, NARANPURA, AHMEDABAD, Gujarat - 380013, INDIA

B44655504

 

* Date of charge modification

 

 

 

FIXED ASSETS

 

·         Factory Land

·         Factory Land Development

·         Factory Building,

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles Computers

·         Website Designing and Software

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

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

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.42

UK Pound

1

Rs.99.72

Euro

1

Rs.77.93

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ART

 

 

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

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--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

 

28

 

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.