MIRA INFORM REPORT

 

 

Report No. :

337487

Report Date :

20.08.2015

 

IDENTIFICATION DETAILS

 

Name :

JYOTI STRIPS PRIVATE LIMITED

 

 

Registered Office :

B-103, Mithapur Extension, Badar Pur, New Delhi-110044

Tel. No.:

91-129-4253872 / 869 / 870

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

18.01.2007

 

 

Com. Reg. No.:

55-158112

 

 

Capital Investment / Paid-up Capital :

Rs.5.000 Million

 

 

CIN No.:

[Company Identification No.]

U51101DL2007PTC158112

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading of Hot Rolled Coils, Sheets, Plates and Cut to Length Products.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject was incorporated in 2007 and it is the trader of hot rolled coils, sheets, plates and cut to length products. It is an established company having moderate track.

 

Management of the subject has failed to file its latest financial with government department for FY 2014.

 

For the financial year ended 2014, subject reported a net profit of Rs. 103.100 Million on an operating income of Rs. 8752.600 Million against a net profit of Rs. 81.800 Million on an operating income of Rs. 7772.600 Million in the previous year.

 

Further, according to 2013 financials, the company’s overall financial position seems to be decent with moderate financial risk profile marked by adequate net worth base and low debt balance sheet profile of the company.

 

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

 

In view of the aforesaid, the company can be considered for business dealings with some caution.

 

 

Note: Partial financial information has been taken from indirect sources i.e. ICRA report.

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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

ICRA

Rating

Long term Bank Facilities BB+

Rating Explanation

Inadequate-credit-quality and high credit risk.

Date

February  2015

 

Rating Agency Name

ICRA

Rating

Short term Bank Facilities A4+

Rating Explanation

Minimal degree of safety and very high credit risk

Date

February  2015

 

 

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 31-03-2013.

 

 

INFORMATION DECLINED

 

Management non-co-operative [91-129-4253860]

 

 

LOCATIONS

 

Registered Office :

B-103, Mithapur Extension, Badar Pur, New Delhi-110044, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

gyaneshwar.sahai@gmail.com

jyotistrips@yahoo.in

Website :

www.jyotistrips.com

 

 

Head Office :

Plot No. 8, Anaj Mandi, Nehru Ground, NIT, Faridabad-121001, Haryana, India

 

 

Corporate Office :

Plot No. 100-106, Sector 59, Huda Phase II, Ballabhgarh, Faridabad-121004, Haryana, India

Tel. No.:

91-129-4253872/869/870

 

 

Godown :

Plot No. 5, B.P. Neelam Bata Road, NIT, Faridabad-121001, Haryana, India

Tel. No.:

91-129-4030269/4003070

 

 

DIRECTORS

 

As on 30.09.2013

 

Name :

Mr. Naresh Kumar

Designation :

Director

Address :

House No. 212, Sector 15A, Faridabad-121002, Haryana, India

Date of Birth/Age :

04.09.1972

Date of Appointment :

18.01.2007

Din No.:

00647504

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

U51101DL2007PTC158112

JYOTI STRIPS PRIVATE LIMITED

Director

18/01/2007

18/01/2007

-

Active

NO

2

U27106DL2007PTC159712

AJIT SHEETS INDIA PRIVATE LIMITED

Director

26/02/2007

26/02/2007

-

Active

NO

 

 

Name :

Ms. Shalini Garg

Designation :

Director

Address :

House No. 212, Sector 15A, Faridabad-121002, Haryana, India

Date of Birth/Age :

02.12.1976

Date of Appointment :

04.02.2013

Din No.:

06424511

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

U51101DL2007PTC158112

JYOTI STRIPS PRIVATE LIMITED

Additional director

04/02/2013

04/02/2013

-

Active

NO

2

U27106DL2007PTC159712

AJIT SHEETS INDIA PRIVATE LIMITED

Director

04/02/2013

04/02/2013

-

Active

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. A.S. Narang

Designation :

Chartered Accountant

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2013

 

Names of Shareholders

No. of Shares

%age holding

Naresh Kumar

28500

57.00

Ajit Sheets India Private Limited, India

15000

30.00

Shalini Garg

6500

13.00

Total

50000

100.00

 

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on 30.09.2013

 

Category

Percentage

Bodies corporate

30.00

Directors or relatives of directors

70.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trading of Hot Rolled Coils, Sheets, Plates and Cut to Length Products.

 

 

Products :
  • Hot Rolled Coils
  • Sheets
  • Plates and Cut to Length Products

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

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 :

 

Remark:

Not Divulged

 

 

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 :

 

Remark:

Not Divulged

 

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Bank Name

State Bank of Patiala

Branch

Mid Corporate Branch, Om Shubham Tower, Neelam Bata Road, NIT, Faridabad-121001, Haryana, 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)

Not Divulged

 

 

Bank Name

Canara Bank

Branch

SME Branch, Bata Hardware Road, NIT, Faridabad-121001, Haryana, India

 

 

Facilities :

Secured Loan

As on 31.03.2013

[Rs. in Million]

As on 31.03.2012

[Rs. in Million]

Long Term Borrowings

 

 

Rupee term loans from others

17.450

0.673

Working capital loans from banks

122.837

398.542

TOTAL

140.287

399.215

 

 

 

Financial Institution :

Dewan Housing Finance Corporation Limited, Warden House, 2nd Floor, Sir. P.M. Road, Fort, Mumbai-400001, Maharashtra, India

 

 

Auditors :

 

Name :

Satish and Company

Chartered Accountants

Address :

B-204, 1st Floor, Nehru Ground, NIT, Faridabad-121001, Haryana, India

PAN N Income-tax PAN of auditor or auditor's firm :

ABAPC9011A

 

 

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 :

Ajit Sheets India Private Limited [U27106DL2007PTC159712]

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000

Equity Shares

Rs.100/- each

Rs.10.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000

Equity Shares

Rs.100/- each

Rs.5.000 Million

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

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

5.000

5.000

5.000

(b) Reserves & Surplus

244.613

162.855

100.545

(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)

249.613

167.855

105.545

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

250.660

478.780

414.299

(b) Deferred tax liabilities (Net)

0.493

0.000

0.000

(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)

251.153

478.780

414.299

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

1507.338

801.624

302.611

(c) Other current liabilities

87.439

32.629

33.529

(d) Short-term provisions

40.860

30.886

19.809

Total Current Liabilities (4)

1635.637

865.139

355.949

 

 

 

 

TOTAL

2136.403

1511.774

875.793

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

171.040

126.420

52.590

(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

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.684

0.562

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.037

Total Non-Current Assets

171.040

127.104

53.189

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.500

(b) Inventories

992.555

511.539

394.519

(c) Trade receivables

891.839

787.344

303.159

(d) Cash and cash equivalents

39.710

40.460

40.516

(e) Short-term loans and advances

2.277

0.050

61.103

(f) Other current assets

38.982

45.277

22.807

Total Current Assets

1965.363

1384.670

822.604

 

 

 

 

TOTAL

2136.403

1511.774

875.793

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

7772.599

8329.512

4956.107

 

 

Other Income

3.141

4.763

6.030

 

 

TOTAL                                    

7775.740

8334.275

4962.137

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

7641.423

8239.378

4904.211

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

134.317

94.897

57.926

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

10.522

1.824

2.226

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX

123.795

93.073

55.700

 

 

 

 

 

Less

TAX                                                                 

42.037

30.763

19.621

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX

81.758

62.310

36.079

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

1635.16

1246.20

--

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2013

31.03.2012

31.03.2011

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

NA

NA

NA

Net cash flow from operating activity

NA

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

Net Profit Margin

(PAT / Sales)

(%)

1.05

0.75

0.73

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

5.79

6.16

6.36

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.50

0.55

0.53

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.00

2.85

3.93

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.20

1.60

2.31

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

5.000

5.000

5.000

Reserves & Surplus

100.545

162.855

244.613

Net worth

105.545

167.855

249.613

 

 

 

 

long-term borrowings

414.299

478.780

250.660

Short term borrowings

0.000

0.000

0.000

Total borrowings

414.299

478.780

250.660

Debt/Equity ratio

3.925

2.852

1.004

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

4956.107

8329.512

7772.599

 

 

68.066

(6.686)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

4956.107

8329.512

7772.599

Profit

36.079

62.310

81.758

 

0.73%

0.75%

1.05%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

Yes

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

Yes

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

NOTE: Registered office of the company has been shifted from 4B, Mithapur Extension Badarpur New Delhi -110044, India to the present address w.e.f. 15.06.2009

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long Term Borrowings

 

 

Other loans and advances

110.373

79.565

TOTAL

110.373

79.565

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10580730

15/06/2015

11,196,000.00

HDFC BANK LIMITED

HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL 
W, MUMBAI, Maharashtra - 400013, INDIA

C59274407

2

10470839

31/12/2013

13,624,000.00

DEWAN HOUSING FINANCE CORPORATION LIMITED

WARDEN HOUSE 2ND FLOORSIR P M ROAD, FORT, MUMBAI, 
Maharashtra - 400001, INDIA

B93763704

3

10470843

31/12/2013

8,962,000.00

DEWAN HOUSING FINANCE CORPORATION LIMITED

WARDEN HOUSE 2ND FLOORSIR P M ROAD, FORT, MUMBAI, 
Maharashtra - 400001, INDIA

B93764298

4

10470844

31/12/2013

8,962,000.00

DEWAN HOUSING FINANCE CORPORATION LIMITED

WARDEN HOUSE 2ND FLOORSIR P M ROAD, FORT, MUMBAI, 
Maharashtra - 400001, INDIA

B93764587

5

10470845

31/12/2013

8,962,000.00

DEWAN HOUSING FINANCE CORPORATION LIMITED

WARDEN HOUSE 2ND FLOORSIR P M ROAD, FORT, MUMBAI, 
Maharashtra - 400001, INDIA

B93764959

6

10470846

31/12/2013

13,624,000.00

DEWAN HOUSING FINANCE CORPORATION LIMITED

WARDEN HOUSE 2ND FLOORSIR P M ROAD, FORT, MUMBAI, 
Maharashtra - 400001, INDIA

B93765287

7

10470847

31/12/2013

8,962,000.00

DEWAN HOUSING FINANCE CORPORATION LIMITED

WARDEN HOUSE 2ND FLOORSIR P M ROAD, FORT, MUMBAI, 
Maharashtra - 400001, INDIA

B93765683

8

10436382

21/05/2013

15,575,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA

B79408654

9

10210104

08/07/2014 *

1,020,000,000.00

STATE BANK OF PATIALA

MID CORPORATE BRANCH, OM SHUBHAM TOWER, NEELAM BATA ROAD, NIT,, FARIDABAD, Haryana - 121001, INDIA

C21377635

10

10069406

08/07/2014 *

1,020,000,000.00

STATE BANK OF PATIALA

MID CORPORATE BRANCH, OM SHUBHAM TOWER, NEELAM BA 
TA ROAD, NIT,, FARIDABAD, Haryana - 121001, INDIA

C19163724

 

 

FIXED ASSETS

 

  • Land
  • Buildings
  • Residential building
  • Office building
  • Plant and equipment
  • Furniture and fixtures    
  • Vehicles
  • Motor vehicles
  • Office equipment
  • Computer equipments

 

 

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 records 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.65.22

UK Pound

1

Rs.102.23

Euro

1

Rs.72.39

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

HNA

 

 

Report Prepared by :

SUJ

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILITY

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

 

30

 

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.