MIRA INFORM REPORT

 

 

Report No. :

302486

Report Date :

14.01.2015

 

IDENTIFICATION DETAILS

 

Name :

FRONTIER TEXTILES PRIVATE LIMITED

 

 

Registered Office :

40/3,  Madan Biswas Lane, Salkia, Howrah – 711106, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

09.12.2004

 

 

Com. Reg. No.:

21-100651

 

 

Capital Investment / Paid-up Capital :

Rs. 7.293 Millions

 

 

CIN No.:

[Company Identification No.]

U17299WB2004PTC100651

 

 

IEC No.:

Not Available

 

 

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, Exporter and Importer of Protective Personal Wear.

 

 

No. of Employees :

200 (Approximately)

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 67000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track.

 

Management of the company has failed to file its financial for the year 2014 with the Government Department.

 

As per available financial of 2013, the company has incurred a loss from its operations.

 

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

 

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

 

NOTES :

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

 

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating = B

Rating Explanation

Have High Risk of Default

Date

1st January, 2013

 

Rating Agency Name

CRISIL

Rating

Short term rating = A4

Rating Explanation

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

Date

1st January, 2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Anup Jaiswal

Designation :

General Manager

Contact No.:

91-9830150410

Date :

10.01.2015

 

 

LOCATIONS

 

Registered Office :

40/3,  Madan Biswas Lane, Salkia, Howrah – 711106, West Bengal, India

Tel. No.:

91-33-22828756

Mobile No.:

91-9830150410 (Mr. Anup Jaiswal)

Fax No.:

91-33-26650962

E-Mail :

frontiertextiles@gmail.com

Area :

Owned

 

 

Factory  :

Kirby Industrial Limited, Dhulagarh, Howrah – 711102, West Bengal, India

 

 

DIRECTORS

 

AS ON 30.09.2013

 

Name :

Mr. Anirudh Singh

Designation :

Director

Address :

67 Shri Arbindo Salkia, Howrah – 700106, West Bengal, India

Date of Birth/Age :

24.03.1968

Date of Appointment :

09.12.2004

DIN No.:

00282832

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

U92111WB1981PTC033471

RAKHEE CINEMA PVT LTD

Director

29-09-92

29-09-92

-

Active

NO

2

U17299WB2004PTC100651

FRONTIER TEXTILES PRIVATE LIMITED

Director

09-12-04

09-12-04

-

Active

NO

3

U74999WB2006PTC109323

MIDAS SAFETY PRIVATE LIMITED

Director

11-05-06

11-05-06

10-09-07

Active

NO

4

U45400WB2007PTC117685

FRONTIER LEISURE PRIVATE LIMITED

Director

07-08-07

07-08-07

-

Strike off

NO

 

 

Name :

Mr. Sandip Singh

Designation :

Director

Address :

67 Shri Arbindo Salkia, Howrah – 700106, West Bengal, India

Date of Birth/Age :

27.01.1957

Date of Appointment :

09.12.2004

DIN No.:

00282906

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

U92111WB1981PTC033471

RAKHEE CINEMA PVT LTD

Director

01-07-81

01-07-81

-

Active

NO

2

U17299WB2004PTC100651

FRONTIER TEXTILES PRIVATE LIMITED

Director

09-12-04

09-12-04

-

Active

NO

 

 

Name :

Mr. Manu Vikraman

Designation :

Director

Address :

VIII 360/4, Vakattu Illam Anchery Amoos Corner Thrissur, Thrissur – 680006, Kerala, India

Date of Birth/Age :

17.01.1984

Date of Appointment :

06.01.2010

DIN No.:

02793424

PAN No.:

AHXPV5495L

 

 

KEY EXECUTIVES

 

Name :

Mr. Anup Jaiswal

Designation :

General Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2013

 

Names of Shareholders

No. of Shares

% of Age

Anirudh Singh

356137

 

Sandip Singh

8500

 

Mohammed Kassam

364637

 

Total

729274

 

 

 

 

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Directors or relatives of Directors

50.00

Other top fifty shareholders

50.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Protective Personal Wear.

 

 

Products :

v  Protective Personal Wear

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :

Finished Good

Countries :

v  Sweden

v  Canada

v  Holland

v  Germany

v  Australia

 

 

Imports :

 

Products :

Raw Material

Countries :

v  China

v  Taiwan

v  Korea

v  Belgium

v  America

 

 

Terms :

 

Selling :

Cash and Credit, L\C

 

 

Purchasing :

Cash and Credit, L\C

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Vardhaman Mills – Baddi – Himachal Pradesh, India

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Wholesalers, Retailers and End Users

Reference :

Laurentide Gloves Limited – Canada

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

Banker Name

State Bank of India

Branch Address

Chowringhee Branch, 38B, Chowringhee Road, Kolkata – 700071, West Bengal, India

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

CA-30845074536

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

 

 

No. of Employees :

200 (Approximately)

 

 

Bankers :

 

Banker Name

State Bank of India

Branch Address

Chowringhee Branch, 38B, Chowringhee Road, Kolkata – 700071, West Bengal, India

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

CA-30845074536

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

 

Banker Name

Dena Bank

Branch Address

Brabourne Road Branch, 16 A, Brabourne Road, Kolkata – 700001, West Bengal, 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

 

 

Facilities :

 

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

From State Bank of India

 

 

Term Loan

2.852

3.940

Magma Shrachi Finance Limited, India 

0.000

0.054

Magma Fincorp Limited, India

0.476

0.000

 

 

 

SHORT TERM BORROWINGS

 

 

From Dena Bank

 

 

Demand Loans

0.147

0.135

From State Bank of India

 

 

Export packing credit

50.439

50.243

Cash Credit

5.032

4.205

Total

58.946

58.577

 

Auditors :

 

Name :

Jaiswal Bhagat and Company

Chartered Account

Address :

11A Bow Street, Kolkata – 700012, West Bengal, India

PAN No.:

ACRPJ8708P

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Associates/Subsidiaries :

Not Available

 

 

CAPITAL STRUCTURE

 

As on 30.09.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1500000

Equity Shares

Rs.10/- each

Rs. 15.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

729274

Equity Shares

Rs.10/- each

Rs. 7.292 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

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

7.293

7.293

7.293

(b) Reserves & Surplus

16.222

17.871

14.071

(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)

23.515

25.164

21.364

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

3.328

3.994

1.297

(b) Deferred tax liabilities (Net)

0.638

0.638

0.637

(c) Other long term liabilities

5.736

5.581

6.181

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

9.702

10.213

8.115

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

66.332

63.100

67.911

(b) Trade payables

14.965

27.311

19.816

(c) Other current liabilities

21.821

9.220

8.646

(d) Short-term provisions

5.372

5.372

4.266

Total Current Liabilities (4)

108.490

105.003

100.639

 

 

 

 

TOTAL

141.707

140.380

130.118

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

31.336

32.059

21.190

(ii) Intangible Assets

1.942

2.365

2.713

(iii) Capital work-in-progress

0.000

0.000

3.129

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

2.503

1.119

0.550

Total Non-Current Assets

35.781

35.543

27.582

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

68.806

58.850

55.350

(c) Trade receivables

11.411

20.995

14.081

(d) Cash and cash equivalents

5.302

4.183

6.193

(e) Short-term loans and advances

8.653

13.669

22.066

(f) Other current assets

11.754

7.140

4.846

Total Current Assets

105.926

104.837

102.536

 

 

 

 

TOTAL

141.707

140.380

130.118

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

75.893

170.616

114.078

 

 

Other Income

9.946

21.883

8.554

 

 

TOTAL                                    

85.839

192.499

122.632

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

31.150

107.422

69.096

 

 

Purchases of Stock-in-Trade

0.380

0.253

0.329

 

 

Employees benefits expense

9.967

12.823

7.276

 

 

Other expenses

33.284

56.024

35.598

 

 

TOTAL (B)

74.781

176.522

112.299

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

11.058

15.977

10.333

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

8.911

7.176

4.081

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

2.147

8.801

6.252

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

3.795

3.892

2.252

 

 

 

 

 

 

PROFIT BEFORE TAX

(1.648)

4.909

4.000

 

 

 

 

 

Less

TAX                                                                 

 0.000

1.110

1.425

 

 

 

 

 

 

PROFIT AFTER TAX

(1.648)

3.799

2.575

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods

67.231

153.844

107.375

 

TOTAL EARNINGS

67.231

153.844

107.375

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Accessories

4.278

10.918

6.962

 

 

Capital Goods

0.956

6.967

0.907

 

TOTAL IMPORTS

5.234

17.885

7.869

 

 

 

 

 

 

Earnings Per Share (Rs.)

(2.26)

5.21

3.53

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

 

 

 

Net Profit Margin (PAT/Sales)

(%)

(2.17)

2.23

2.26

 

 

 

 

 

Operating Profit Margin (PBDIT/Sales)

(%)

14.57

9.36

9.06

 

 

 

 

 

Return on Total Assets (PBT/Total Assets}

(%)

(1.16)

3.50

3.15

 

 

 

 

 

Return on Investment (ROI) (PBT/Networth)

 

(0.07)

0.20

0.19

 

 

 

 

 

Debt Equity Ratio (Total Debt /Networth)

 

2.96

2.67

3.24

 

 

 

 

 

Current Ratio (Current Asset/Current Liability)

 

0.98

1.00

1.02

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

7.293

7.293

7.293

Reserves & Surplus

14.071

17.871

16.222

Net worth

21.364

25.164

23.515

 

 

 

 

long-term borrowings

1.297

3.994

3.328

Short term borrowings

67.911

63.100

66.332

Total borrowings

69.208

67.094

69.660

Debt/Equity ratio

3.239

2.666

2.962

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

114.078

170.616

75.893

 

 

49.561

(55.518)

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

114.078

170.616

75.893

Profit

2.575

3.799

(1.648)

 

2.26%

2.23%

(2.17%)

 


 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

No

17]

Major suppliers

Yes

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

Yes

31]

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

Yes

32]

PAN of Proprietor/Partner/Director, if available

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

UNSECURED LOAN

(Rs. In Million)

PARTICULAR

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

SHORT TERM BORROWINGS

 

 

Credit balance with Banks

0.014

0.117

Sweta Chaudhry

10.700

8.400

Total

10.714

8.517

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10176091

08/09/2009

33,000,000.00

STATE BANK OF INDIA

CHOWRINGHEE BRANCH, 38B, CHOWRINGHEE ROAD, KOLKAT 
A, West Bengal - 700071, INDIA

A69872521

2

10169819

30/12/2010 *

72,000,000.00

State Bank of India

Chowringhee Branch, 38B, Chowringhee Road, Kolkat 
a, West Bengal - 700071, INDIA

B06150346

3

80037810

13/09/2007 *

27,500,000.00

DENA BANK

BRABOURNE ROAD BRANCH, 16 A, BRABOURNE ROAD, KOLK 
ATA, West Bengal - 700001, INDIA

A25216250

 

* Date of charge modification

 

 PERFORMANCE OF THE COMPANY

 

During the company has achieved a sales volume of Rs.75.893 Millions as compared to previous year which was 170.615 Millions. Company incurred a loss of Rs. (1.648) Millions during the year.

 

Through a combination of premiumization, cost control and increased efficiency at every stage of its process, the company has been able to not only mitigate cost increases but also improve its profitability.

 

FIXED ASSETS

v  Land and Building

v  Machinery

v  Vehicles

v  Factory Expenses

 

 

 

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.62.16

UK Pound

1

Rs.94.28

Euro

1

Rs.73.73

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

RSM

 

 

Report Prepared by :

ANU

 

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

1

--LIQUIDITY

1~10

3

-LEVERAGE

1~10

3

--RESERVES

1~10

4

--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

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

 

29

 

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.