MIRA INFORM REPORT

 

 

Report No. :

355787

Report Date :

23.12.2015

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI HITACHI POWER SYSTEMS INDIA PRIVATE LIMITED (w.e.f. 03.04.2014)

 

 

Formerly Known As :

MITSUBISHI POWER SYSTEMS INDIA PRIVATE LIMITED

 

 

Registered Office :

8B, 8th Floor, Lotus Towers, Community Center, New Friends Colony, New Delhi-110025

Tel. No.:

91-11-49824400

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

28.09.2011

 

 

Com. Reg. No.:

55-225628

 

 

Capital Investment / Paid-up Capital :

Rs. 114.925 Million

 

 

CIN No.:

[Company Identification No.]

U29292DL2011FTC225628

 

 

IEC No.:

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELM20229G

 

 

PAN No.:

[Permanent Account No.]

AAHCM4491K

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is primarily engaged in supply, installation, consultancy, marketing and maintenance service of power generation and prime mover products and systems. (Registered activity)

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a wholly owned subsidiary of Mitsubishi Hitachi Power Systems Limited, Japan. The name of the company has been changed from Mitsubishi Power Systems India Private Limited to Mitsubishi Hitachi Power Systems India Private Limited with effect from 3rd April 2014.

 

The rating takes into consideration sound financial risk profile of the company marked by adequate networth base and comfortable debt level in the year 2015. However, the company has reported decline in its sales revenue along with profit in the year under consideration.

 

Trade relations are fair. Business is active. Payment terms are reported to be usually correct.

 

In view of strong support from its parent company, the company can be considered for business dealings with 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

 

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 DECLINED

 

Management Non-Cooperative (91-11-49824400)

 

 

 

LOCATIONS

 

Registered/ Sales Office :

8B, 8th Floor, Lotus Towers, Community Center, New Friends Colony, New Delhi-110025, India

Tel. No.:

91-11-49824400

Fax No.:

91-11-49824450

E-Mail :

lalit_kumar@mhii.mhi.co.jp

mallikarjun_vishwanatham@mhps.com

arjun_nayar@mhps.com

Website :

http://www.mhpsindia.com

 

 

Engineering Office (HQ):

6th Floor, Pride Hulkul, No. 116, Lalbagh Road, Bangalore-560027, Karnataka,  India

Tel. No.:

91-80-67187187

Fax No.:

91-80-67187188

 

 

DIRECTORS

 

AS ON 19.09.2014

 

Name :

Mr. Masayuki Kubo

Designation :

Managing director

Address :

3-18-11, Daiyarando, Nagasaki-Shi, Nagasaki-Ken, Nagasaki, 00000, Japan

Date of Birth/Age :

15.08.1952

Date of Appointment :

28.09.2011

PAN No.:

CHRPK2325Q

DIN No.:

01585730

 

 

Name :

Mr. Satoshi Hoshi

Designation :

Director

Address :

Garden Kamata 713, 1-3-13, Nishi Kamata, OTA-KU, Tokyo, NA, Japan, India

Date of Birth/Age :

01.01.1963

Date of Appointment :

25.08.2014

DIN No.:

06931596

 

 

KEY EXECUTIVE

 

Name :

Mallikarjun Vishwanatham

Designation :

Secretary

Address :

274, Ground Floor, 37th B Cross, 28th Main, 9th Block, Jayanagar, Bangalore - 560069, Karnataka, India

Date of Appointment :

24.08.2015

PAN No.:

AEYPV2266B

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2015

 

Names of Shareholders

No. of Shares

 

%age holding

Mitsubishi Hitachi Power Systems India Private Limited, Japan

11442600

99.57

Mitsubishi Hitachi Power Systems Asia Pacific Pte Limited, Singapore

49900

0.43

Total

11492500

100.00

 

 

 

AS ON 19.09.2014

 

Equity Share Breakup

Percentage of Holding

Category

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is primarily engaged in supply, installation, consultancy, marketing and maintenance service of power generation and prime mover products and systems. (Registered activity)

 

 

Products :

Item Code No.

Product Description

98010013

Trading of Power Equipment

98010013

Engineering Services

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

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 Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

Customers :

Reference:

Not Divulged

Name of the Person :

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

No. of Employees :

Not Divulged

 

 

Bankers :

Bank Name:

Not Divulged

Branch:

Not Divulged

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 A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks:

Not Divulged

 

 

 

Auditors :

 

Name :

Mohinder Puri and Company

Chartered Accountants

Address :

1A-D Vandana11, Tolstoy Marg, Connaught Place, New Delhi-110001, India

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

AAAFM9269R

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding Company :
  • Mitsubishi Hitachi Power Systems Limited, Japan ( from 1st February 2014 )
  • - Mitsubishi Heavy Industries Ltd., Japan ( upto 31st January 2014 )

 

 

Ultimate Holding Company :

Mitsubishi Heavy Industries Limited, Japan (from 1st February 2014)

 

 

Fellow Subisidary Companies :
  • MHPS Canada INC (Formerly known as MPS Canada Inc), Canada
  • Mitsubishi Hitachi Power Systems America. Inc, United States (Formerly Known as Mitsubishi Power Systems, America., Inc)

·         PW Power Systems Inc,. USA

  • MH Power Systems Engineering Vienna. GMBH, Austria (Formerly known as MHI Engineering Vienna., Gmbh)
  • Turboden SRL
  • Hitachi Mitsubishi Hydro Corporation

·         Mitsubishi Heavy Industries Limited, Dubai

·         MHI Accounting Service Limited, Japan

  • Mitsubishi Heavy Industries India Private Limited, India
  • U29299DL2005PTC133062
  • MHPS Canada Inc (Formerly known as MPS Canada Inc)

 

·         Mitsubishi Power Systems Asia Pacific Pte Limited, Singapore

  • (Formerly known as Mitsubishi Power Systems Asia Pacific Pte Ltd., Singapore)

·         Mitsubishi Heavy Industries India Private Limited, India (U29299DL2005PTC133062)

·         Mitsubishi Power Systems, America., Inc

·         MPS Canada Inc

·         MHI Engineering Engineering Vienna., Gmbh

 

 

Associate Company :

·         L&T-MHI Boilers Private Limited, india (U29119MH2006PTC165102)

·         L&T-MHI Turbine Generators Private Limited, India (U31101MH2006PTC166541)

 

 

CAPITAL STRUCTURE

 

AFTER 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

11502500

Equity Shares

Rs. 10/- each

Rs. 115.025 Million

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

11492500

Equity Shares

Rs. 10/- each

Rs. 114.925 Million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2015

31.03.2014

31.03.2013

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

114.925

49.900

49.900

(b) Reserves & Surplus

272.058

73.951

20.425

(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)

386.983

123.851

70.325

 

 

 

 

(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

0.000

0.000

0.000

(d) long-term provisions

18.309

12.033

7.683

Total Non-current Liabilities (3)

18.309

12.033

7.683

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

62.179

204.107

149.815

(b) Trade payables

138.355

468.353

28.811

(c) Other current liabilities

318.692

358.775

397.250

(d) Short-term provisions

0.615

0.435

0.373

Total Current Liabilities (4)

519.841

1031.670

576.249

 

 

 

 

TOTAL

925.133

1167.554

654.257

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

27.886

46.170

40.454

(ii) Intangible Assets

33.379

7.641

8.192

(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)

5.749

3.461

1.825

(d)  Long-term Loan and Advances

73.165

41.156

44.705

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

140.179

98.428

95.176

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

307.352

597.298

112.430

(d) Cash and cash equivalents

286.274

117.039

41.271

(e) Short-term loans and advances

175.807

340.673

386.727

(f) Other current assets

15.521

14.116

18.653

Total Current Assets

784.954

1069.126

559.081

 

 

 

 

TOTAL

925.133

1167.554

654.257

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

Income

1546.734

2296.894

452.588

 

Other Income

0.133

0.461

0.000

 

TOTAL (A)

1546.867

2297.355

452.588

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

0.000

0.000

 

 

Purchases of Stock-in-Trade

885.832

1555.122

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

0.000

0.000

 

 

Employees benefits expense

341.287

331.862

 

 

Other expenses

249.006

298.901

 

TOTAL (B)

1476.125

2185.885

427.255

(Including financial expenses)

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

70.742

111.470

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

19.447

23.195

 

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

51.295

88.275

25.333

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

30.162

16.767

7.466

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

21.133

71.508

17.867

 

 

 

 

 

Less

Prior period items

1.830

(30.910

1.333

 

 

 

 

 

Less

TAX (H)

16.270

48.910

4.942

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-H)   (I)

3.033

53.518

11.592

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

913.005

1610.772

257.812

 

TOTAL EARNINGS

913.005

1610.772

257.812

 

 

 

 

 

 

IMPORTS

 

 

 

 

Purchase of Traded Goods

0.000

549.669

0.000

 

TOTAL IMPORTS

0.000

549.669

0.000

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

0.42

10.73

 --

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

NA

NA

NA

Cash Generated from Operations

NA

NA

NA

Net cash flows from (used in) operations

161.537

85.841

NA

Net Cash Flow from used in Operations

109.329

67.225

NA

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

0.20

2.33

2.56

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

4.57

4.85

5.60

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.30

6.14

2.74

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.05

0.58

0.25

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.16

1.65

2.13

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.51

1.04

0.97

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

49.900

49.900

114.925

Reserves & Surplus

20.425

73.951

272.058

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

70.325

123.851

386.983

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

149.815

204.107

62.179

Total borrowings

149.815

204.107

62.179

Debt/Equity ratio

2.130

1.648

0.161

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

452.588

2296.894

1546.734

 

 

407.502

(32.660)

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

452.588

2296.894

1546.734

Profit

11.592

53.518

3.033

 

2.56%

2.33%

0.20%

 

 

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

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

Yes

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

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

No

21

Banking facility details

No

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

No

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

 

 

 

CHANGE OF ADDRESS:

 

The Registered Office of the company has been shifted Unit No. 6A-2, 6th Floor, Lotus Towers, Commumity Centre, New Friends Colony, new Delhi-110025, India from to the present address w.e.f 01.12.2013


INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

 

UNSECURED LOANS

 

UNSECURED LOANS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from banks

62.179

204.107

 

 

 

Total

62.179

204.107

 

 

SEGMENT REPORTING

 

Primary Segment - Business

 

The Company is primarily engaged in the business of supply, installation, consultancy, marketing and maintenance service of power generation and prime mover products and systems. As such, there is no separate reportable segment as per the Accounting Standard (AS) - 17 (Segment Reporting) notified in Companies (Accounting standards) Rules, 2006.

 

There is no other reportable segment as per the Accounting Standard (AS) 17 (Segment Reporting) notified in Companies (Accounting

 ) Rules, 2006.

 

OPERATIONS

 

During the financial year, the Company registered total turnover of Rs. 1546.7400 Million as compared to Rs. 2296.890 Million for the previous year. Similarly the expenditure for the same period was Rs. 1495.580 Million as compared to Rs. 2209.080 Million for the previous year.

 

The profit after depreciation and before tax in the current year stands at Rs. 21.130 Million as compared to Rs. 71.510 Million for the previous year and the net profit for the current year stands at Rs. 3.030 Million compared to Rs. 53.530 Million for the previous year.

 

BUSINESS OUTLOOK AND FUTURE PROSPECTS

 

With the Indian economy showing a positive trend the power sector in India is undergoing a significant change that is redefining the industry outlook. The Government of India’s focus to attain ‘Power For All’ has accelerated capacity addition in the country.

 

The Company wishes to contribute to the development of industry in India through the contribution of reliable and stable power supply, in meeting the client request; Better, Faster, and Cheaper.

 

Subsequent to the business integration of power divisions of MHI, Japan and Hitachi Inc., Japan, worldwide, the business opportunities of the company has increased tremendously. Post business integration, the Company is benefitted with the highly advanced technology and the long range of products and it results in enhancing its ability to address customer needs and provide service by taking advantage of their respective strengths in providing total solutions across all aspects of thermal power plants.

 

The Company is giving more emphasis on establishing EPC (Engineering Procurement and Construction) organisation for power projects in India as well as neighbouring countries. During the year, your Company has received orders from Indian Farmers Fertiliser Cooperative Limited (IFFCO), India's largest fertilizer producer, for a Combined Heat and Power (CHP) supply plant consisting of MHPS's H-25 gas turbine, a generator and a heat recovery steam generator (HRSG), which is to be built within IFFCO's existing Phulpur plant in Uttar Pradesh. Plans call for an output of 22 megawatts (MW) and steam volume of 60 tons per hour. The CHP plant is scheduled to go on-stream in July 2016.

 

The Company also aims to enter into renovation and modernisation business. The trading and the procurement activities in India have been gearing up. The more concentration is being given to explore the potential vendors in the domestic market.

 

The Company is expecting improvement in the domestic business opportunities of the Company during the next year. The Company is exploring business opportunities in India and targeting potential customers.

 

The Company believes that the most important asset in a company is people. Therefore, the basic approach regarding their human resources system is to create a workplace where employees can fully demonstrate their skills and capabilities, and to develop an environment where each employee can maximize his or her potential. In this regard, the Company has implemented various welfare schemes and policies for its employees during the year to keep its employees motivated and enhancing its retention efforts.

 

Keeping in view of the above, the directors are expecting enhancement and expansion of business operations and profitability of the Company in near future.

 

 

FIXED ASSETS:

 

Tangible Assets

 

·         Furniture and Fixtures

·         Vehicles

·         Office Equipment

·         Leasehold Improvements

 

Intangible Assets

 

·         Computer software

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

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

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

Indian Rupees

US Dollar

1

Rs. 66.29

UK Pound

1

Rs. 98.70

Euro

1

Rs. 72.33

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

KIN

 

 

Report Prepared by :

SUJ

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

47

 

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.