MIRA INFORM REPORT

 

 

Report No. :

355439

Report Date :

30.12.2015

 

 IDENTIFICATION DETAILS

 

Name :

BHAVIK SYSTEMS PRIVATE LIMITED

 

 

Registered Office :

KalaKunj, Amardeep Society, D- 5, Plot No. 714, Sector- 7, Charkop, Kandivali West, Mumbai-400067, Maharashtra

Tel. No.:

91- 22- 28672219

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

09.08.2007

 

 

Com. Reg. No.:

11- 172989

 

 

Capital Investment / Paid-up Capital :

Rs. 1.500 Million

 

 

CIN No.:

[Company Identification No.]

U20299MH2007PTC172989

 

 

IEC No.:

Not Applicable (As claimed by company management chat company does not export and import)

 

 

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 :

Manufacturer of Modular Office Furniture, Marine Furniture, Designer Furniture Including School and Institutional Furniture, Work Station Furniture, Office Cabin Furniture (Confirmed by Management)

 

 

No. of Employees :

35 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

41-55

Ba

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

 

Satisfactory

 

 

Maximum Credit Limit :

USD 38000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject was established in the year 2007 and it is engaged in manufacturing of modular office furniture, marine furniture and designer furniture including school and institutional furniture.

 

For the financial year ended 2015, company has reported 7.14% revenue growth as compared to previous year revenue and it has maintain average profitability margin at 3.07% during the year under review.

 

Rating takes into consideration company’s established track record of business operations supported by its above average financial profile along moderate liquidity position and moderate debt coverage indicators.

 

Trade relations are reported as fair. Payment terms are reported to be usually correct.

 

In view of aforesaid, the company can be considered for business dealings at usual trade terms and condition.

 

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. Sanjay Kulkarni

Designation :

Chief Executive Officer

Contact No.:

91- 9324517236

Date :

23.12.2015

 

 

LOCATIONS

 

Registered Office :

KalaKunj, Amardeep Society, D- 5, Plot No. 714, Sector- 7, Charkop, Kandivali West, Mumbai-400067, Maharashtra, India

Tel. No.:

91- 22- 28672219

Mobile No.:

91- 9324517236 (Mr. Sanjay Kulkarni)

Fax No.:

Not Available

E-Mail :

bhaviksystems@gmail.com

Website :

http://bhaviksystems.com

Area :

500 Sq. Ft.

Location :

Owned

Locality:

Commercial

 

 

Factory  :

Unit No. 77, Parmar Techno Center, Phase- 2, Pelhar Village, Near Vasai Phata, Vasai East, Vasai- 414067, Maharashtra, India

Tel. No.:

91- 250- 3212502

Area :

10000 Sq. Ft.

Location :

Owned

 

 

DIRECTORS

 

As on 31.03.2015

 

Name :

Sandeep Sadanand Belekar

Designation :

Director

Address :

6/28, New Modern Co-operative Housing Society, Samir Chandavarkar Lane, Kandivali, Mumbai- 400067, Maharashtra, India

Date of Birth/Age :

15.06.1969

Date of Appointment :

01.02.2013

DIN No.:

01574923

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

U20299MH2007PTC172989

BHAVIK SYSTEMS PRIVATE LIMITED

Director

01-02-13

09-08-07

-

Active

NO

2

U36102MH2010PTC210635

ASSOCIATED FURNITURE COMPANY PRIVATE LIMITED

Director

06-12-10

06-12-10

-

Active

NO

 

 

Name :

Vaibhav Bhupendra Shah

Designation :

Director

Address :

E-218, Raj Arcade, Mahavir Nagar, Dahanukar Wadi Kandivali West, Mumbai- 400067, Maharashtra, India

Date of Birth/Age :

07.04.1984

Date of Appointment :

09.08.2007

DIN No.:

01574952

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

U20299MH2007PTC172989

BHAVIK SYSTEMS PRIVATE LIMITED

Director

09-08-07

09-08-07

-

Active

NO

2

U36102MH2010PTC210635

ASSOCIATED FURNITURE COMPANY PRIVATE LIMITED

Director

06-12-10

06-12-10

-

Active

NO

 

 

 

 

 

 

 

 

 

 

 

Name :

Paresh Kumar Pathak

Designation :

Director

Address :

310 Vighneshwar Jay Nagar, Waliv Tal Vasai District Thane, Walvi- 401202, Maharashtra, India

Date of Birth/Age :

07.11.1969

Date of Appointment :

01.02.2013

DIN No.:

01960600

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

U20299MH2007PTC172989

BHAVIK SYSTEMS PRIVATE LIMITED

Director

01-02-13

01-12-07

-

Active

NO

2

U36102MH2010PTC210635

ASSOCIATED FURNITURE COMPANY PRIVATE LIMITED

Director

06-12-10

06-12-10

-

Active

NO

 

 

Name :

Bhavik Yogesh Shah

Designation :

Director

Address :

E- 318, Raj- Arcade, Mahavir Nagar, Dhanukarwadi, Kandivali West, Mumbai- 400067, Maharashtra, India

Date of Birth/Age :

24.09.1993

Date of Appointment :

29.09.2011

DIN No.:

05100368

 

 

KEY EXECUTIVES

 

Name :

Mr. Sanjay Kulkarni

Designation :

Chief Executive Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Names of Shareholders

 

No. of Shares

Vaibhav B Shah

 

37500

Paresh Pathak

 

22500

Sandeep Belekar

 

52500

Bhavik Shah

 

37500

Total

 

150000

 

Equity Share Break up (Percentage of Total Equity)

 

As on 30.09.2014

 

Category

Percentage

Directors or relatives of Directors

100.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Modular Office Furniture, Marine Furniture, Designer Furniture Including School and Institutional Furniture, Work Station Furniture, Office Cabin Furniture (Confirmed by Management)

 

 

Products :
  • Modular Office Furniture
  • Marine Furniture
  • Designer Furniture
  • School and Institutional Furniture
  • Work Station Furniture
  • Office Cabin Furniture

 

Item Code No.

Product Description

9988

Furniture Manufacturing Services

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Advance Payment, Cheque and Demand Draft

 

 

Purchasing :

Advance Payment, Cheque and Demand Draft

 

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Merino Laminates

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 :

Reference :

Ajanta Pharma Limited

Name of the Person :

Not Divulged

Contact No.:

91- 22- 28683945

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

35 (Approximately)

 

 

Bankers :

Bank Name

Bank of Maharashtra

Branch

B. S. Road, Dadar West, Mumbai

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

 

 

Facilities :

Secured Loan

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Long-term Borrowings

 

 

Cash Credit Loans

 

 

NKGSB Bank

3.152

5.452

Term Loan

 

 

Term Loan on Factory Premises(LNM-261)

0.000

0.803

Term Loan against Machinery(LNM-290)

0.000

1.675

Term Loan against Hypothecation of Wagon R

0.174

0.335

Total

3.326

8.265

 

 

Auditors :

 

Name :

S. Ramanand Aiyar and Company

Chartered Accountants

Address :

501/ 502, 5th Floor, Umerji House, Next to Crescent Plaza, Opposite Imperial Hotel, Telli Gully, Andheri East, Mumbai- 400069, Maharashtra, India

Tel. No.:

91- 22- 26820605/ 26820608

Fax No.:

91- 22- 26820274

E-Mail :

mumbai@sraco.in

Website :

www.sraco.in

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

ABJFS9507L

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Enterprise over which Key Management Personnel are able Exercise significant influence

Bhavik Enterprises

 

 

CAPITAL STRUCTURE

 

As on: 30.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

150000

Equity Shares

Rs.10/- each

Rs. 1.500 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

150000

Equity Shares

Rs.10/- each

Rs. 1.500 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

1.500

1.500

1.500

(b) Reserves & Surplus

11.818

10.219

8.145

(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)

13.318

11.719

9.645

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

3.326

8.265

7.528

(b) Deferred tax liabilities (Net)

0.962

1.053

0.911

(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)

4.288

9.318

8.439

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.583

3.189

3.508

(b) Trade payables

7.286

5.095

4.476

(c) Other current liabilities

2.522

0.693

0.195

(d) Short-term provisions

0.000

0.330

0.000

Total Current Liabilities (4)

10.391

9.307

8.179

 

 

 

 

TOTAL

27.997

30.344

26.263

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

9.396

10.553

10.749

(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

0.200

0.200

0.200

(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

0.339

0.335

0.335

Total Non-Current Assets

9.935

11.088

11.284

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

8.397

8.175

11.713

(c) Trade receivables

5.918

6.245

1.737

(d) Cash and cash equivalents

3.079

4.245

1.045

(e) Short-term loans and advances

0.662

0.561

0.418

(f) Other current assets

0.007

0.031

0.036

Total Current Assets

18.063

19.257

14.949

 

 

 

 

TOTAL

27.998

30.345

26.233

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

 

Income

67.662

63.268

 

 

Other Income

1.344

1.134

 

 

 

TOTAL                                     (A)

69.006

64.402

43.541

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of Stock-in-Trade

48.669

44.403

 

 

Changes in inventories

(0.221)

3.568

 

 

 

Employees benefits expense

7.584

6.609

 

 

 

Other expenses

8.450

5.006

 

 

 

TOTAL                                     (B)

64.482

59.586

41.971

 

 

 

 

 

 

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

4.524

4.816

[including financial and depreciation expenses]

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

0.830

0.933

 

 

 

 

 

 

 

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

3.694

3.883

 

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                     (F)

0.783

0.731

 

 

 

 

 

 

 

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

2.911

3.152

1.570

 

 

 

 

 

Less

TAX                                                                  (H)

0.790

1.076

0.571

 

 

 

 

 

 

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

2.121

2.076

0.999

 

 

 

 

 

 

Earnings Per Share (Rs.)

14.14

14.14

NA

 

 

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 operating activities

NA

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2015

31.03.2014

31.03.2013

 

 

 

 

Net Profit Margin
(PAT / Sales)

(%)

3.13

3.28

NA

 

 

 

 

 

Operating Profit Margin
(PBIDT/Sales)

(%)

6.69

7.61

3.61

 

 

 

 

 

Return on Total Assets (PBT/Total Assets}

(%)

10.47

10.46

6.03

 

 

 

 

 

Return on Investment (ROI) (PBT/Networth)

 

0.22

0.27

0.16

 

 

 

 

 

Debt Equity Ratio (Total Debt /Networth)

 

0.29

0.98

1.14

 

 

 

 

 

Current Ratio (Current Asset/Current Liability)

 

1.74

2.07

1.83

 

 

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

1.500

1.500

1.500

Reserves & Surplus

8.145

10.219

11.818

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

9.645

11.719

13.318

 

 

 

 

long-term borrowings

7.528

8.265

3.326

Short term borrowings

3.508

3.189

0.583

Total borrowings

11.036

11.454

3.909

Debt/Equity ratio

1.144

0.977

0.294

 

 

 

 

 

 

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)

Total Income

43.541

64.402

69.006

 

 

47.911

7.149

 

 

 

NET PROFIT MARGIN

 

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Total Income

43.541

64.402

69.006

Profit

0.999

2.076

2.121

 

2.29%

3.22%

3.07%

 

 

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)

No

16

No. of employees

Yes

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

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

 

PARTICULARS

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

Short-term borrowings

 

 

Short Term Maturity of Long Term Borrowing

0.098

0.000

Advance from Customers

0.485

3.189

Other Advances

0.000

0.000

Total

0.583

3.189

 

 

 

INDEX OF CAHREGS:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10594307

08/09/2015 *

5,000,000.00

BANK OF MAHARASHTRA

Bhavani Shankar Road Branch, Brahaman Seva Mandal 
Building, Dadar West, Mumbai-400028 Maharashtra, India

C66853649

 

 

 

 

 

 

 

 

 

 

* Date of charge modification

 

 

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 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 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. 66.37

UK Pound

1

Rs.98.91

Euro

1

Rs.72.85

 

 

INFORMATION DETAILS

 

Information Gathered by :

KAR

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NKTC

 

 

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

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

 

45

 

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.