MIRA INFORM REPORT

 

 

Report No. :

316070

Report Date :

07.04.2015

 

IDENTIFICATION DETAILS

 

Name :

HENKEL ADHESIVES TECHNOLOGIES INDIA PRIVATE LIMITED (w.e.f.17.11.2005)

 

 

Formerly Known As :

HENKEL LOCTITE INDIA PRIVATE LIMITED (w.e.f.16.07.2002)

 

LOCTITE INDIA PRIVATE LIMITED

 

 

Registered Office :

10th and 11th Floor, Kesar Solitaire, Plot No. 5, Sector 19, Palm Beach Road, Sanpada, Navi Mumbai – 400705, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.01.1990

 

 

Com. Reg. No.:

11-234233

 

 

Capital Investment / Paid-up Capital :

Rs.412.147 Millions

 

 

CIN No.:

[Company Identification No.]

U28933MH1990PTC234233

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRH01954B

 

 

PAN No.:

[Permanent Account No.]

AAACL1954B

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Industrial Adhesives Products and Trader of Hair Care Products.

 

 

No. of Employees :

680 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (64)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a subsidiary of Henkel AG and Co. KGaA. It’s operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care, Beauty Care and Adhesive Technologies. It is a well-established and reputed company having fine track record.

 

The rating takes into consideration established track record of business operations backed by its decent brand image and wide geographical presence. 

 

Rating also takes into consideration company’s healthy financial risk profile marked by adequate liquidity position and favorable profitability margins of the company

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good for normal 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.

 

 

EXTERNAL AGENCY RATING

 

NOT AVAILABLE

 

 

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. Prasad Mulay

Designation :

Finance Department

Contact No.:

91-9833143736

Date :

04.04.2015

 

 

LOCATIONS

 

Registered/ Head Office / Factory 1 :

10th and 11th Floor, Kesar Solitaire, Plot No 5, Sector 19, Palm Beach Road, Sanpada, Navi Mumbai – 400705, Maharashtra, India

Tel. No.:

91-22-39296600

Mobile No.:

91-9833143736 (Mr. Prasad Mulay)

Fax No.:

91-22-39296602

E-Mail :

sumant.khedekar@in.henkel.com

pratik.u.shah@in.henkel.com

prasad.mulay@in.henkel.com

Website :

http://www.henkel.com

Location : 

Owned

 

 

Factory 2 :

D73/2, D74/2, D74/6, TTC Industrial Area, Off Thane Belapur Road, Turbhe Naka, Navi Mumbai – 400705, Maharashtra, India

Tel. No.:

91-22-61296229

 

 

Factory 3 :

Plot No.1/1, Part – 2, TTC Industrail Area, Thane Belapur Road, Koparkhairrne, Navi Mumbai – 400710, Maharashtra, India

Tel. No.:

91-22-77787348

 

 

Branch Offices :

Located at

 

·         Gurgaon

·         Uttarakhand

·         Chennai

·         Pune

·         Navi Mumbai

 

 

DIRECTORS

 

As on 30.09.2014

 

Name :

Mr. Sundararaman Ramakrishnan Iyer

Designation :

Alternate Director

Address :

A-2/403, Gangotri Sadan CHS Limited, Bangur Nagar, Goregaon (West), Mumbai – 400090, Maharashtra, India

Date of Birth/Age :

24.05.1960

Date of Appointment :

19.11.2010

DIN No.:

03303029

 

 

Name :

Jeremy Hunter

Designation :

Director

Address :

105 Webb, St Warrandyte VIC, Australia 3113

Date of Birth/Age :

16.05.1960

Date of Appointment :

01.08.2011

DIN No.:

03536491

 

 

Name :

May Ying Cheung

Designation :

Additional Director

Address :

Flat 12 A, Tower 6, Phase 1, Residence Bel-Air, Pokfulam, Hong Kong, 0000, Hong Kong

Date of Birth/Age :

22.08.1966

Date of Appointment :

23.04.2013

DIN No.:

06539553

 

 

Name :

Bappa Bandyopadhyay

Designation :

Director

Address :

Flat No A/601, Bhumiraj Iraisaa, Plot No 1, Sector 19, Sanpada, Navi Mumbai - 400705, Maharashtra, India

Date of Birth/Age :

04.07.1969

Date of Appointment :

01.08.2014

DIN No.:

06936428

 

 

Name :

Nuri Erdem Kocak

Designation :

Director

Address :

Silverene Towers 2008, Tower A, Po Box 61341, Dubai, 61341, United Arab Emirates

Date of Birth/Age :

07.09.1960

Date of Appointment :

28.09.2014

DIN No.:

06955497

 

 

KEY EXECUTIVES

 

Name :

Mr. Prasad Mulay

Designation :

Finance Department

 

 

Name :

Pratik Umesh Shah

Designation :

Secretary

Address :

B-21, Triveni, Gilbert Hill Road, Andheri (West), Mumbai - 400058, Maharashtra, India

Date of Birth/Age :

17.04.1981

Date of Appointment :

17.08.2014

PAN No.:

AYFPS3963H

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Names of Shareholders

No. of Shares

Henkel KGaA, Germany

41214663

Inter Beteligungsverwaltungs-Gesellschaft GmbH, Germany

1

 

 

 Total

41214664 

 

 

As on 30.09.2014

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Industrial Adhesives Products and Trader of Hair Care Products.

 

 

Products :

Item Code No. (ITC Code)

Product Description

2926.90 (Cyanocacry late)

Adhesives and Sealants

3506.10 (Ancerobic)

Adhesives and Sealants

2916.14 (Resinol)

Sealants

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :

·         Industrial Adhesives Products

·         Hair Care Products.

Countries :

·         Thailand

·         USA

·         UAE

·         Sri Lanka

·         Europe

·         Israel

 

 

Imports :

 

Products :

Raw Material

Countries :

·         Germany

·         China

·         Malaysia

 

 

Terms :

 

Selling :

Cash, Advance Payment and Credit (30, 60 and 90 Days)

 

 

Purchasing :

Cash, Advance Payment and Credit (30, 60 and 90 Days)

 

 

PRODUCTION STATUS – NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt:

Not Divulged

Experience :

Not Divulged

Remark :

--

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt:

Not Divulged

Experience :

Not Divulged

Remark :

--

 

 

No. of Employees :

680 (Approximately)

 

 

Bankers :

Banker Name

State Bank of India

Branch Address

Industrial Finance Branch, Residency Road, Bangalore – 560025, Karnataka, India

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

--

 

·         State Bank of India

Shiv Sagar Estate, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

·         Deutsche Bank

For Branch, Mumbai, Maharashtra, India

 

Auditors :

 

Name :

BSR and Company

Chartered Accountants

Address :

Lodhi Excelus, 1st Floor, Apollo Mills Compound, NM Joshi Marg, Mahalakshmi, Mumbai – 400011, Maharashtra, India

PAN No. :

AAAFB9852F

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding Company :

v  Henkel Ag and Company Kgaa, Germany

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

85750000

Equity Shares

Rs.10/- each

Rs.857.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

41214664

Equity Shares

Rs.10/- each

Rs.412.147 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

412.147

412.147

412.147

(b) Reserves & Surplus

5454.850

5023.946

4600.980

(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)

5866.997

5436.093

5013.127

 

 

 

 

(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

4.515

4.001

3.249

(d) long-term provisions

57.187

41.159

6.805

Total Non-current Liabilities (3)

61.702

45.160

10.054

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

1494.700

1538.021

918.064

(c) Other current liabilities

485.340

406.856

445.139

(d) Short-term provisions

222.512

272.795

177.386

Total Current Liabilities (4)

2202.552

2217.672

1540.589

 

 

 

 

TOTAL

8131.251

7698.925

6563.770

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2468.545

2307.429

2351.465

(ii) Intangible Assets

268.622

316.505

472.704

(iii) Capital work-in-progress

60.897

142.929

81.804

(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)

194.790

185.732

162.363

(d)  Long-term Loan and Advances

284.261

205.245

180.241

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

3277.115

3157.840

3248.577

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1256.395

1132.443

999.916

(c) Trade receivables

2283.910

1969.016

1711.900

(d) Cash and cash equivalents

860.081

1039.212

322.799

(e) Short-term loans and advances

450.825

400.414

279.954

(f) Other current assets

2.925

0.000

0.624

Total Current Assets

4854.136

4541.085

3315.193

 

 

 

 

TOTAL

8131.251

7698.925

6563.770

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

10358.903

9395.289

8701.774

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                    

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

NA

NA

NA

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

973.027

921.148

1217.397

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

298.675

293.168

521.362

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

674.352

627.980

696.035

 

 

 

 

 

Less

TAX                                                                 

243.447

205.014

246.728

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

430.905

422.966

449.307

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1862.396

1439.430

990.123

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

2293.301

1862.396

1439.430

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export at FOB Value

NA

1028.240

814.513

 

TOTAL EARNINGS

NA

1028.240

814.513

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

2876.236

2490.377

 

 

Stores & Spares

NA

414.545

387.782

 

 

Capital Goods

NA

65.506

34.212

 

TOTAL IMPORTS

NA

3356.287

2912.371

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

10.45

10.26

10.90

 

 

Particulars

 

 

 

31.03.2015

 

 

 

 

Sales Turnover (Approximately)

 

 

12000.000

 

 

 

 

 

The above information has been parted by Mr. Prasad Mulay

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

4.16

4.50

5.16

 

 

 

 

 

Operating Profit Margin

(PBDIT/ Sales)

(%)

100.00

100.00

100.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

8.56

8.52

11.01

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.11

0.12

0.14

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.00

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.20

2.05

2.15

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

 

DEBT EQUITY RATIO

 

 

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

412.147

412.147

412.147

Reserves & Surplus

4600.980

5023.946

5454.850

Net worth

5013.127

5436.093

5866.997

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

0.000

0.000

0.000

Total borrowings

0.000

0.000

0.000

Debt/Equity ratio

0.000

0.000

0.000

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

8701.774

9395.289

10358.903

 

 

7.970

10.256

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

8701.774

9395.289

10358.903

Profit

449.307

422.966

430.905

 

5.16%

4.50%

4.16%

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE: Current Maturities of Long Term Debts is 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

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

Yes

17]

Major suppliers

No

18]

Major customers

No

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

No

33]

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

No

34]

External Agency Rating, if available

No

 

 

LITIGATION DETAILS

 

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

Presentation Date:- 16.05.2013

Lodging No.:- CP<L/324/2013   Filing Date:- 16.05.2013   Reg. No.:- CP/300/2013   Reg. Date:- 29.05.2013

Petitioner:M/S. SUNDERLAND DEVELOPERS          Respondent: HENKEL ADHESIVES TECHNOLOGIES

PRIVATE LIMITED                                                                           INDIA PRIVATE LIMITED

 

Petn. Adv : AJAY LAW ASSOCIATES ()               Resp. Adv.: NEGANDHI SHAH AND HIMAYATULLAH (832)

 

District: MUMBAI

 

Bench: SINGLE

 

Status: Pre-Admission   

 

Next Date: 30.04.2015                                     Stage: FOR ADMISSION – FRESH (ORIGINAL SIDE - MATTERS)

 

Coram: ACCORDING TO SITTING LIST                                                 

 

Last Date: 0                                                   Stage: FOR ADMISSION – FRESH (ORIGINAL SIDE - MATTERS)

 

Last Coram: HON’BLE SHRI JUSTICE S.J. KATHAWALLA

 

Act:  companies Act & Rules 1956                   UNDER SECTION:  433 (E) (F), 434 (1) (A),  439 (I) (B)

 

 

INDEX OF CHARGES

 

No Charges Exist for Company

 

 

BACKGROUND

 

Subject is a private limited company incorporated under the provisions of the Companies Act, 1956 on 1 January 1990 and is a subsidiary of Henkel AG and Co KGaA, a company incorporated in Germany. The Company is in the business of manufacture and sale of industrial adhesive products and trading of hair care products in India. Henkel CAC Private Limited, a subsidiary of the Company was amalgamated with the Company w.e.f. 1 April 2010. The Company had acquired the hair care products business from Henkel India Limited w.e.f. 1 May 2011.

 

 

FIXED ASSETS

 

v  Land

v  Buildings

v  Plant and Equipment

v  Furniture and Fixtures

v  Vehicles

v  Office Equipment

v  Leasehold Improvements

 

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.62.16

UK Pound

1

Rs.92.73

Euro

1

Rs.68.23

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRP

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

-- PROFITABILITY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

64

 

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.