MIRA INFORM REPORT

 

 

Report No. :

353386

Report Date :

14.12.2015

 

IDENTIFICATION DETAILS

 

Name :

K2 CRANES AND COMPONENTS PRIVATE LIMITED

 

 

Registered Office :

No. 14 A, Telugu Bgahim Street, Vellacherry, Chennai- 600042, Tamilnadu, India  

Tel. No.:

91-44-42022895

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

28.04.2008

 

 

Com. Reg. No.:

18-067509

 

 

Capital Investment / Paid-up Capital :

Rs.18.058 Million

 

 

CIN No.:

[Company Identification No.]

U29150TN2008PTC067509

 

 

IEC No.:

0408008075

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AADCK3625M

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of EOT Cranes (Confirmed By Management)

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (44)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 1000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company incorporated in the year 2010 having satisfactory track.

 

The company is progressing well. It has shown a healthy growth in its profit during FY 2014.

 

The rating also takes into consideration satisfactory net worth base, fair liquidity position and favorable gap between trade payable and trade receivable.

 

Trade relations are reported as fair. Business is active. Payments terms are reported as usually correct and as per commitment.

 

The company can be considered normal for business dealings at usual trade terms and conditions.  

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – 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

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

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 31-03-2015.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Raja

Designation :

Account Department 

Contact No.:

91-9176940707

Date :

09.12.2015

 

 

LOCATIONS

 

Registered Office :

No. 14 A, Telugu Bgahim Street, Vellacherry, Chennai- 600042, Tamilnadu, India  

Tel. No.:

91-44-42022895

Mobile No.:

91-9176940707 (Mr. Raja)

Fax No.:

91-44-43037695

E-Mail :

finance@k2cranes.com 

sales@k2cranes.com

Website :

http://www.k2cranes.com

Area :

Rented

Location :

Commercial

 

 

Factory  :

Survey No. 352,Uthirameur Road, Pukkathurai- 603308, Tamilnadu, India

Tel. No.:

91-44-27565634

Area :

Rented

Location :

Industrial

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Mr. Rajagopal Nandakumar

Designation :

Whole-Time Director

Address :

2-B, 2 Allendale Flat, C-108, 79th Street, 18th Avenue, Ashoknagar, Chennai- 600083, Tamilnadu, India

Date of Appointment :

28.04.2008

DIN No.:

00977084

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

U25206TN2002PTC049293

KARTHIGEYA MOULDS & DIES PRIVATE LIMITED

Director

19/07/2002

19/07/2002

-

Active

NO

2

U25206TN2006PTC060314

KARTHIGEYA PLASTICS AND TECHNOLOGIES PRIVATE LIMITED

Director

22/06/2006

22/06/2006

-

Active

NO

3

U29150TN2008PTC067509

K2 Cranes & Components Private Limited

Whole-time director

1/7/2008

28/04/2008

-

Active

NO

4

U29220TN2009PTC073064

K2 Machine Tools Private Limited

Director

1/10/2009

1/10/2009

-

Active

NO

 

 

Name :

Mr. Narasimma Achari Arumugam

Designation :

Whole-Time Director

Address :

1-B, Allendale Flat, C-108, 79th Street, 18th Avenue, Ashoknagar, Chennai- 600083, Tamilnadu, India

Date of Appointment :

28.04.2008

DIN No.:

00977124

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

U25206TN2002PTC049293

KARTHIGEYA MOULDS & DIES PRIVATE LIMITED

Director

19/07/2002

19/07/2002

-

Active

NO

2

U25206TN2006PTC060314

KARTHIGEYA PLASTICS AND TECHNOLOGIES PRIVATE LIMITED

Director

22/06/2006

22/06/2006

-

Active

NO

3

U29150TN2008PTC067509

K2 Cranes & Components Private Limited

Whole-time director

1/7/2008

28/04/2008

-

Active

NO

4

U29220TN2009PTC073064

K2 Machine Tools Private Limited

Director

1/10/2009

1/10/2009

-

Active

NO

 

 

Name :

Mr. Subramanian Dhandapani

Designation :

Additional Director

Address :

Flat 4 F, Block 2, Ceebros Orchid, 263/33, Velachery Main Road, Velachery, Chennai- 600042, Tamilnadu, India

Date of Appointment :

28.04.2008

DIN No.:

02125154

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

U25206TN2002PTC049293

KARTHIGEYA MOULDS & DIES PRIVATE LIMITED

Director

19/07/2002

19/07/2002

-

Active

NO

2

U25206TN2006PTC060314

KARTHIGEYA PLASTICS AND TECHNOLOGIES PRIVATE LIMITED

Director

22/06/2006

22/06/2006

-

Active

NO

3

U29150TN2008PTC067509

K2 Cranes & Components Private Limited

Whole-time director

1/7/2008

28/04/2008

-

Active

NO

4

U29220TN2009PTC073064

K2 Machine Tools Private Limited

Director

1/10/2009

1/10/2009

-

Active

NO

5

U30007TN2007PTC064211

CHENNAI CNC TOOL ROOM PRIVATE LIMITED

Director

30/09/2010

15/12/2009

28/03/2011

Amalgamated

NO

 

 

Name :

Mr. Madhavan Udaykumar

Designation :

Additional Director

Address :

Flat 4 F, Block 2, Ceebros Orchid, 263/33, Velachery Main Road, Velachery, Chennai- 600042, Tamilnadu, India

Date of Appointment :

01.07.2008

DIN No.:

02174703

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

Top of Form

1

U25206TN2002PTC049293

KARTHIGEYA MOULDS & DIES PRIVATE LIMITED

Director

19/07/2002

19/07/2002

-

Active

NO

2

U25206TN2006PTC060314

KARTHIGEYA PLASTICS AND TECHNOLOGIES PRIVATE LIMITED

Director

22/06/2006

22/06/2006

-

Active

NO

3

U29150TN2008PTC067509

K2 CRANES AND COMPONENTS PRIVATE LIMITED

Whole-time director

1/7/2008

28/04/2008

-

Active

NO

4

U29220TN2009PTC073064

K2 MACHINE TOOLS PRIVATE LIMITED

Director

1/10/2009

1/10/2009

-

Active

NO

Bottom of Form

 

 

KEY EXECUTIVES

 

Name :

Mr. Raja

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2014

 

Names of Shareholders

No. of Shares

%age holding

S. Dhandapani

398743

22.08

R. Nandakumar

398743

22.08

N. Arumugam

398743

22.08

M. Udayakumar

519375

28.76

N. Palani

90295

5.00

Total

1805899

100

 

Equity Share Break up (Percentage of Total Equity)

 

AS ON

 

Category

Percentage

Directors or relatives of Directors

95.00

Other

5.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of EOT Cranes (Confirmed By Management)

 

 

Products :
  • Cranes
  • Hoist
  • Winches
  • Accessories

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :

Finished Goods

Countries :

Dubai

 

 

Imports :

 

Products :

Raw Material

Countries :
  • UK
  • China

 

 

Terms :

 

Selling :

Cheque

 

 

Purchasing :

Cheque

 

 

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:

Not Divulged

 

 

Customers :

Retailers, End Users 

 

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:

Not Divulged

 

 

No. of Employees :

100  (Approximately)

 

 

Bankers :

Banker Name

IDBI Bank

Branch Address

Pammal Main Road, Palla Varam Branch Chennai, Tamilnadu, India

Person Name (With Designation)

Not Divulged

Contact Number

91-44-64531781

Name of Account Holder

K2 Cranes And Components Private Limited

Account Number

004102000003780

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)

No working properly

 

 

Facilities :

(Rs. In Million)

 

SECURED LOAN

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWING

 

 

Secured On Hypothecation of Plant and     Machinery

 

 

IDBI Bank - TL

18.463

26.410

SIDBI Bank- TL

14.000

0.000

Secured Against Lies On Cars

 

 

Kotak Mahindra Prime Limited- FIGO

0.153

0.263

Kotak Mahindra Prime Limited- TATA MANZA

0.199

0.341

SHORT TERM BORROWING

 

 

Secured On Hypothecation of Stock and Books Debts

 

 

IDBI Bank- Cash Credit

38.130

33.491

Total

70.945

60.505

 

Auditors :

 

Name :

Durairaj and Associates

Chartered Accountant

Address :

No.160, 56th Street, TVS Colony, Anna Nagar, West Extn., Chennai- 600101, Tamilnadu, India   

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

AAGPD2257A

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Associates/Subsidiaries :

Not Available

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2000000

Equity Shares

Rs.10/- each

Rs.20.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1805899

Equity Shares

Rs.10/- each

Rs.18.058 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

18.058

11.970

11.970

(b) Reserves & Surplus

19.817

16.348

16.102

(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)

37.875

28.318

28.072

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

35.274

39.111

36.542

(b) Deferred tax liabilities (Net)

0.000

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)

35.274

39.111

36.542

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

38.130

33.491

29.838

(b) Trade payables

26.679

32.629

56.857

(c) Other current liabilities

4.707

7.293

5.949

(d) Short-term provisions

9.581

3.521

4.449

Total Current Liabilities (4)

79.097

76.934

97.093

 

 

 

 

TOTAL

152.246

144.363

161.707

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

51.143

55.365

57.783

(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

0.000

0.000

(d)  Long-term Loan and Advances

0.270

0.261

1.569

(e) Other Non-current assets

3.791

5.146

0.950

Total Non-Current Assets

55.204

60.772

60.302

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

34.494

58.743

52.607

(c) Trade receivables

51.746

18.790

26.658

(d) Cash and cash equivalents

6.725

0.605

7.344

(e) Short-term loans and advances

4.077

5.453

14.796

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

97.042

83.591

101.405

 

 

 

 

TOTAL

152.246

144.363

161.707

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

249.040

201.263

210.315

 

 

 

 

 

Less

EXPENSES

244.556

200.960

199.905

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

4.484

0.303

10.410

 

 

 

 

 

Less

TAX

1.015

0.058

2.120

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

3.469

0.245

8.290

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Sales Turnover (Approximately)

250.000

249.040

201.263

 

 

 

 

 

Expected Sales (2015.2016): Rs.400.000 Million

 

The above information has been parted by Mr. Raja

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

1.39

0.12

3.94

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.94

0.21

6.44

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.12

0.01

0.37

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.94

2.56

2.36

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.23

1.09

1.04

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

11.970

11.970

18.058

Reserves & Surplus

16.102

16.348

19.817

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

28.072

28.318

37.875

 

 

 

 

long-term borrowings

36.542

39.111

35.274

Short term borrowings

29.838

33.491

38.130

Total borrowings

66.380

72.602

73.404

Debt/Equity ratio

2.365

2.564

1.938

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

210.315

201.263

249.040

 

 

(4.304)

23.739

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

210.315

201.263

249.040

Profit

8.290

0.245

3.469

 

3.94%

0.12%

1.39%

 

 

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

No

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)

No

16

No. of employees

Yes

17

Details of sister concerns

No

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

Yes

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

UNSECURED LOAN

(Rs. In Million)

Particulars

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWING

 

 

Secured loans from director/ shareholder

 

 

Arumugam  N

0.588

1.863

Dhandapani S

1.418

7.683

Nandakumar R

0.398

1.663

Palani N

0.001

0.295

Udhayakumar

0.053

0.592

Total

2.458

12.096

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10447496

22/08/2013

17,000,000.00

Small Industries Development Bank of India

OVERSEAS TOWERS, 756, ANNA SALAI (OPP.TVS), CHENNAI- 600002, TAMILNADU, INDIA

B84254713

2

10229135

17/07/2014 *

95,920,000.00

IDBI Bank Limited

37, PM TOWERS, GREAMS ROAD, CHENNAI- 600006, TAMILNADU, INDIA

C13842745

 

 

FIXED ASSETS

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.66.78

UK Pound

1

Rs.101.10

Euro

1

Rs.73.10

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

 

 

 

Report Prepared by :

PRV

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILITY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

4

--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

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

44

 

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.