MIRA INFORM REPORT

 

 

Report No. :

318865

Report Date :

27.04.2015

 

IDENTIFICATION DETAILS

 

Name :

RAYALASEEMA INDUSTRIES (INDIA) PRIVATE LIMITED (w.e.f. 13.08.2010)

 

 

Formerly Known As :

RAMNATH ONKARMAL STEEL ROLLING MILLS PRIVATE LIMITED

 

 

Registered Office :

4-1-970, C-403 and 404, 4th Floor, Upasana Block, Ahuja Estate, ABIDS, Hyderabad – 500 001, Telangana

Tel. No.:

91-40-24753679

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

20.04.2005

 

 

Com. Reg. No.:

36-044088

 

 

Capital Investment / Paid-up Capital :

Rs.132.551 million

 

 

CIN No.:

[Company Identification No.]

U27109TG2005PTC044088

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AACCR8836N

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in manufacturing of long and flat steel products, primarily thermo-mechanically treated (TMT) bars, and mild steel (MS) angles, beam channels, and structural products of varying thickness. 

 

 

No. of Employees :

60 (Approximately)  

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 411500

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

Reserves of the company seems to be low during 2014.

 

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

 

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

 

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 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating: BB- (Suspended)

Rating Explanation

Have inadequate credit quality and carry high credit risk.

Date

31.03.2015

 

 

Rating Agency Name

CRISIL

Rating

Short Term Rating: A4+ (Suspended)

Rating Explanation

Have minimal degree of safety and carry very high credit risk.

Date

31.03.2015

 

Reason for suspension:

The suspension of ratings is on account of non-cooperation by RIPL with CRISIL’s efforts to undertake a review of the ratings outstanding.

 

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. Kamal Kishore

Designation :

Accountant

Contact No.:

91-40-24753679

Date :

25.04.2015

 

 

LOCATIONS

 

Registered Office/ Administrative Office :

4-1-970, C-403 and 404, 4th Floor, Upasana Block, Ahuja Estate, ABIDS, Hyderabad – 500 001, Telangana, India

Tel. No. :

91-40-24753679/ 24753698/ 24753699

Fax No. :

91-40-24753680

E-Mail :

rsrm.steel@gmail.com

Location :

Owned

Locality :

Commercial

 

 

Factory :

Survey No.115/2/A/A, Teegapur Village, Kothur IDA, District Mahabubnagar, Telangana, India

Location :

Owned

Locality :

Industrial

 

 

DIRECTORS

 

AS ON 30.09.2014

 

Name :

Mr. Balram Agarwal

Designation :

Director

Address :

21-2-773, Patal Market Jublee, Pathargatty, Hyderabad – 500 002, Telangana, India

Date of Birth/Age :

15.02.1983

Date of Appointment :

30.09.2010

DIN No. :

01675522

Other Directorship :

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U27106TG2003PTC040996

BILASRAIKA SPONGE IRON INDIA PRIVATE LIMITED

Director

13/05/2003

13/05/2003

31/01/2012

Active

NO

2

U27310TG2007PTC052339

BILASRAIKA STEEL PRIVATE LIMITED

Director

10/01/2007

10/01/2007

-

Active

NO

3

U27101TG2007PTC056156

RAYALASEEMA STEEL RE-ROLLING MILLS PRIVATE LIMITED

Director

01/11/2007

01/11/2007

31/01/2012

Active

NO

4

U27109TG2005PTC044088

RAYALASEEMA INDUSTRIES (INDIA) PRIVATE LIMITED

Director

30/09/2010

11/06/2010

-

Active

NO

5

U65923TG2010PTC069736

BILASRAIKA CAPITAL INDIA PRIVATE LIMITED

Director

29/07/2010

29/07/2010

-

Active

NO

6

U25209TG2010PTC070907

BILASRAIKA POLYFILMS PRIVATE LIMITED

Director

20/10/2010

20/10/2010

-

Strike off

NO

 

 

Name :

Mr. Inder Karan Agarwal

Designation :

Director

Address :

21-2-773, Patal Market Jublee, Pathargatty, Hyderabad – 500 002, Telangana, India

Date of Birth/Age :

02.10.1951

Date of Appointment :

30.09.2009

DIN No. :

01675609

PAN No.:

AEHPK0569H

Other Directorship :

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U27106TG2003PTC040996

BILASRAIKA SPONGE IRON INDIA PRIVATE LIMITED

Director

30/09/2004

30/09/2004

-

Active

NO

2

U27109TG2005PTC044088

RAYALASEEMA INDUSTRIES (INDIA) PRIVATE LIMITED

Director

30/09/2009

01/04/2009

-

Active

NO

3

U65923TG2010PTC069736

BILASRAIKA CAPITAL INDIA PRIVATE LIMITED

Director

29/07/2010

29/07/2010

-

Active

NO

4

U25209TG2010PTC070907

BILASRAIKA POLYFILMS PRIVATE LIMITED

Director

20/10/2010

20/10/2010

-

Strike off

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. Kamal Kishore

Designation :

Accountant

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2014

 

Note:

Shareholding details file attached.

 

AS ON 30.09.2014

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Bodies corporate

68.41

Directors or relatives of Directors

31.59

Total

100.00

 

                 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in manufacturing of long and flat steel products, primarily thermo-mechanically treated (TMT) bars, and mild steel (MS) angles, beam channels, and structural products of varying thickness. 

 

 

Products :
  • M.S. Angle
  • M.S. Channel
  • M.S. Joist
  • CTD Bars (TMT) etc.

 

 

Brand Names :

"RIIPL"

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

 

Products :
  • Scrap

Countries :
  • Germany
  • USA
  • France

 

 

Terms :

 

Selling :

Cash and Cheque

 

 

Purchasing :

Cash and Cheque 

 

 

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

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Wholesalers and Retailers

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

60 (Approximately)  

 

 

Bankers :

Banker Name

The South Indian Bank Limited

Branch Address

H No.8-3-214/22/S, Ground Floor, Sai Surya Tower, Sreenivasa Colony (West), Ameerpet, Hyderabad – 500 038, Telangana, 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)

Cash Credit: Rs.200.000 million

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

 

Facilities :

SECURED LOANS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

LONG TERM BORROWINGS

 

 

Rupee term loans from banks

94.886

7.766

Other loans and advances

0.652

0.000

SHORT TERM BORROWINGS

 

 

Rupee term loans from banks

102.797

90.711

Total

198.335

98.477

 

Banking Relations :

--

 

 

Auditors :

 

Name :

R.B. Kabra and Company

Chartered Accountants

Address :

4-1-917, Parsi Lane, Tilak Road, ABIDS, Hyderabad – 500 001, Telangana, India

PAN No.:

AAEFR3093C

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :
  • Rayalaseema Steel Re-Rolling Mills Private Limited, India (CIN No.: U27101TG2007PTC056156)
  • Bilasraika Sponge Iron India Private Limited, India (CIN No.: U27106TG2003PTC040996)
  • Bilasraika Capital India Private Limited, India (CIN No.: U65923TG2010PTC069736)

 

 

CAPITAL STRUCTURE

 

AS ON 30.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1620000

Equity Shares

Rs.100/- each

Rs.162.000 million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1325510

Equity Shares

Rs.100/- each

Rs.132.551 million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

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

132.551

57.500

37.000

(b) Reserves & Surplus

11.483

6.016

(13.074)

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

25.300

12.000

Total Shareholders’ Funds (1) + (2)

144.034

88.816

35.926

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

128.399

77.058

64.733

(b) Deferred tax liabilities (Net)

10.074

9.723

2.013

(c) Other long term liabilities

2.000

32.960

0.000

(d) Long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

140.473

119.741

66.746

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

102.797

90.711

65.952

(b) Trade payables

115.191

40.324

26.493

(c) Other current liabilities

14.384

10.287

6.910

(d) Short-term provisions

1.775

1.581

0.675

Total Current Liabilities (4)

234.147

142.903

100.030

 

 

 

 

TOTAL

518.654

351.460

202.702

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

75.416

79.529

59.320

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

115.545

67.971

0.000

(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

0.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

190.961

147.500

59.320

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

104.840

112.065

79.117

(c) Trade receivables

105.330

34.287

30.698

(d) Cash and cash equivalents

2.094

4.520

3.109

(e) Short-term loans and advances

104.585

47.336

26.928

(f) Other current assets

10.844

5.752

3.530

Total Current Assets

327.693

203.960

143.382

 

 

 

 

TOTAL

518.654

351.460

202.702

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Total Revenue

922.169

511.370

652.475

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                    

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

NA

NA

NA

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION, EXCEPTIONAL & EXTRAORDINARY ITEMS

22.039

16.533

19.540

 

 

 

 

 

Less

INTEREST

9.580

6.238

9.037

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

12.459

10.295

10.503

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

5.080

3.291

8.557

 

 

 

 

 

Add

EXCEPTIONAL & EXTRAORDINARY ITEMS

0.000

21.196

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

7.379

28.200

1.946

 

 

 

 

 

Less

TAX                                                                 

1.913

9.109

0.300

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

5.466

19.091

1.646

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

4.12

33.20

NA

 

Expected Sales (2014-2015): Rs.1320.000 million

 

The above information has been parted by Mr. Kamal Kishore (Accountant).

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Total Revenue)

(%)

0.59

3.73

0.25

 

 

 

 

 

Operating Profit Margin

(PBDIT/ Total Revenue)

(%)

2.39

3.23

2.99

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.83

9.95

0.96

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.05

0.32

0.05

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.61

1.89

3.64

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.40

1.43

1.43

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(INR in Million)

(INR in Million)

(INR in Million)

Share Capital

37.000

57.500

132.551

Reserves & Surplus

13.074

6.016

11.483

Share Application money pending allotment

12.000

25.300

0.000

Net worth

35.926

88.816

144.034

 

 

 

 

Long Term borrowings

64.733

77.058

128.399

Short Term borrowings

65.952

90.711

102.797

Total borrowings

130.685

167.769

231.196

Debt/Equity ratio

3.638

1.889

1.605

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(INR in Million)

(INR in Million)

(INR in Million)

Total Revenue

652.475

511.370

922.169

 

 

(21.626)

80.333

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(INR in Million)

(INR in Million)

(INR in Million)

Total Revenue

652.475

511.370

922.169

Profit

1.646

19.091

5.466

 

0.25%

3.73%

0.59%

 

 

 

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

Yes

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

-----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

NOTE:

 

The registered address of the company has been shifted from 19-5-16/5, Bahadurpura, Hyderabad – 500 002, Andhra Pradesh to the present address w.e.f. 24.07.2010. 

 

 

HISTORY:

 

Rayalseema Industries (India) Private Limited was incorporated in 2005. The Company is having a Re-rolling Mills and is into manufacture of M.S. Angle, M.S. Channel, M.S. Joist, CTD Bars (TMT) etc., under the brand name "RIIPL". The Company is in process of setting up an induction furnace to Manufacture MS Billets.

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

LONG TERM BORROWINGS

 

 

Loans and advances from directors

0.109

0.605

Loans and advances from others

32.752

68.687

Total

32.861

69.292

 

 

INDEX OF CHARGES

 

S. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10463689

06/12/2013

200,000,000.00

ANDHRA PRADESH STATE FINANCIAL CORPORATION

CHIRAG ALI LANE, HYDERABAD, ANDHRA PRADESH - 500001, INDIA

B90908286

2

10466272

07/11/2013

143,000,000.00

THE SOUTH INDIAN BANK LIMITED

H NO.8-3-214/22/S, GROUND FLOOR, SAI SURYA TOWER, 
SREENIVASA COLONY (WEST), AMEERPET, HYDERABAD, ANDHRA PRADESH - 500038, INDIA

B92000488

 

 

FIXED ASSETS

 

·         Land

·         Buildings

·         Plant and Equipments

·         Furniture and Fixtures

·         Vehicles

 

 

 

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.63.40

UK Pound

1

Rs.95.42

Euro

1

Rs.68.49                                                                 

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SMN

 

 

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

-- PROFITABILITY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

27

 

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.