MIRA INFORM REPORT

 

 

Report No. :

303778

Report Date :

20.01.2015

 

IDENTIFICATION DETAILS

 

Name :

HIJAZ LEATHERS PRIVATE LIMITED

 

 

Registered Office :

No. 17 (Old No. 7), Wuthucattan Street, Periamet, Chennai – 600003, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

15.04.2005

 

 

Com. Reg. No.:

18-055988

 

 

Capital Investment / Paid-up Capital :

Rs.5.530 Millions

 

 

CIN No.:

[Company Identification No.]

U19112TN2005PTC055988

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEH03690B

 

 

PAN No.:

[Permanent Account No.]

AABCH5963P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Finished Leather

 

 

No. of Employees :

Not Available

 

 

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 200000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record.

 

General financial position of the company seems to be sound. Profitability of the company is fair.

 

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

 

The company can be considered 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 – 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

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 31-03-2014.

 

LOCATIONS

 

Registered Office :

No. 17 (Old No. 7), Wuthucattan Street, Periamet, Chennai – 600003, Tamilnadu, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

pariauditchennai@gmail.com

hijazleathersindia@yahoo.co.in

pmyousuf@gmail.com

Website :

http://www.hijazleathers.com

 

 

Corporate Office :

57/(Old No. 60), Raja Muthija Road, Periamat, Chennai – 600003, Tamilnadu, India

Tel. No.:

91-44-25615938/25612969

Fax No.:

91-44-25615934

E-Mail :

hijazpmy@eth.net

gpselvam@eth.net

 

 

Factory  :

19, Alangayam Cross Road, Perumalpet, Vaniyambadi – 635751, Tamilnadu, India

Tel. No.:

91-4174-232122

Fax No.:

91-4174-232267

 

 

DIRECTORS

 

As on 30.09.2014

 

Name :

Mr. Chakwa Mohamed Peruaze

Designation :

Director

Address :

13/1, Gundu Md. Ebrahim Street, Extn. Muslimpur, Vaniyambadi – 635 751, Tamilnadu, India

Date of Birth/Age :

01.06.1959

Date of Appointment :

15.04.2005

DIN No.:

01282630

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

U19112TN2005PTC055988

HIJAZ LEATHERS PRIVATE LIMITED

Director

15-04-05

15-04-05

-

Active

NO

2

U45200TN2009PTC073602

RIGHTWAY DEVELOPERS PRIVATE LIMITED

Director

19-11-09

19-11-09

-

Active

NO

3

U19200TN2011PTC079057

HIJAZ KURODA GLOVES COMPANY PRIVATE LIMITED

Director

04-02-11

04-02-11

-

Active

NO

4

U19111TN2005PTC055989

IDEAL FINISHING AGENCY PRIVATE LIMITED

Director

31-03-12

31-03-12

-

Active

NO

 

 

Name :

Mr. Moolakadai Mohamed Muneer

Designation :

Director

Address :

No.195-338/13-A Al-Huda Garden, 5th Cross patel Yakoob Street, Fort, Vaniyambadi - 635 751, Tamilnadu, India

Date of Birth/Age :

20.07.1958

Date of Appointment :

15.04.2005

DIN No.:

01280258

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

U19111TN2005PTC055989

IDEAL FINISHING AGENCY PRIVATE LIMITED

Director

15-04-05

15-04-05

-

Active

NO

2

U19112TN2005PTC055988

HIJAZ LEATHERS PRIVATE LIMITED

Director

15-04-05

15-04-05

-

Active

NO

3

U45200TN2009PTC073602

RIGHTWAY DEVELOPERS PRIVATE LIMITED

Director

19-11-09

19-11-09

-

Active

NO

4

U19200TN2011PTC079057

HIJAZ KURODA GLOVES COMPANY PRIVATE LIMITED

Director

04-02-11

04-02-11

-

Active

NO

 

 

Name :

Mr. Patel Mohammed Yousuf

Designation :

Director

Address :

60, Onji street, Muslimpur, Vaniyambadi – 635 751, Tamilnadu, India

Date of Birth/Age :

11.04.1959

Date of Appointment :

15.04.2005

DIN No.:

01117607

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

U19119TN1986PLC013155

VANITEC Limited

Managing director

06-07-09

06-03-95

-

Active

NO

2

U19111TN2005PTC055989

IDEAL FINISHING AGENCY PRIVATE LIMITED

Director

15-04-05

15-04-05

-

Active

NO

3

U19112TN2005PTC055988

HIJAZ LEATHERS PRIVATE LIMITED

Director

15-04-05

15-04-05

-

Active

NO

4

U45203TN2001NPL047485

AMBUR ECONOMIC DEVELOPMENT ORGANISATION

Director

10-06-05

10-06-05

-

Active

NO

5

U45200TN2009PTC073602

RIGHTWAY DEVELOPERS PRIVATE LIMITED

Director

19-11-09

19-11-09

-

Active

NO

6

U19200TN2011PTC079057

HIJAZ KURODA GLOVES COMPANY PRIVATE LIMITED

Director

04-02-11

04-02-11

-

Active

NO

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Names of Shareholders

 

No. of Shares

C.Md. Pervaze

 

13849

P.Yasmeen Kausar

 

14431

T. Rizwana Kausar

 

15113

Chengan Imdadullah

 

1200

Chengan Md. Saad

 

5281

C.Md. Suhail

 

573

O. Abdul Rasheed

 

822

R. Zaheer Ahmed

 

475

Patel Mohamed Usama

 

398

O. Shakila Nasneen

 

1225

Abida Fazal

 

175

P.Md.Yousuf

 

505

Sumaiya Sultana

 

1252

Total

 

55299

 

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 and Exporter of Finished Leather

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

Not Available

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Not Available

Remark:

Not Available

 

 

Customers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Not Available

Remark:

Not Available

 

 

No. of Employees :

Not Available

 

 

Bankers :

Indian Bank, T K M Complex, 46 - 51 Katpadi Road, Vellore, Tamilnadu - 632004, India

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Long-term Borrowings

 

 

From banks and others

0.100

0.554

Current Maturities transferred to Other Current Liabilities

(0.100)

(0.554)

Short-term borrowings

 

 

Working Capital limits with Indian Bank

Loan from banks, especially working capital limits of both fund and non-fund based are secured

25.278

15.064

Buyers Credit from other banks

Secured by way of LCs (Gurantee) given by Indian Bank on behalf of the company.

98.039

98.818

Total

123.317

113.882

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

V.Krishnan and Company

Chartered Accountants

Address :

No.27/A Teacher's Colony, Khaderpet, Vaniyambadi – 635751, Tamilnadu, India

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

AADFV3215D

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Associates:
  • Ideal Finishing Agency Private Limited (IFAPL)
  • Hijaz Kuroda Gloves Private Limited (HKGPL)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000

Equity Shares

Rs.100/- each

Rs. 10.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

55299

Equity Shares

Rs.100/- each

Rs. 5.530 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

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

5.530

5.530

5.530

(b) Reserves & Surplus

64.173

58.466

49.302

(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)

69.703

63.996

54.832

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

6.439

4.836

1.736

(b) Deferred tax liabilities (Net)

0.097

0.254

0.404

(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)

6.536

5.090

2.140

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

123.317

113.882

75.759

(b) Trade payables

64.527

73.327

127.757

(c) Other current liabilities

3.206

1.017

7.633

(d) Short-term provisions

2.374

4.278

0.238

Total Current Liabilities (4)

193.424

192.504

211.387

 

 

 

 

TOTAL

269.663

261.590

268.359

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

24.069

34.653

38.891

(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

6.512

5.092

4.515

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.233

0.225

0.126

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

30.814

39.970

43.532

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

142.915

124.648

127.784

(c) Trade receivables

57.635

47.381

68.402

(d) Cash and cash equivalents

26.443

41.157

18.155

(e) Short-term loans and advances

11.856

8.434

10.486

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

238.849

221.620

224.827

 

 

 

 

TOTAL

269.663

261.590

268.359

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

336.416

361.423

434.958

 

Other Income

1.725

1.428

4.948

 

TOTAL (A)

338.141

362.851

439.906

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

275.790

278.376

361.587

 

Manufacturer expenses

6.257

6.656

16.234

 

Employees benefits expense

4.052

6.101

2.830

 

Director Remuneration

5.400

5.400

5.400

 

Other expenses

22.043

35.934

26.794

 

TOTAL (B)

313.542

332.467

412.845

 

 

 

 

 

Less

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

24.599

30.384

27.061

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

9.940

11.235

11.141

 

 

 

 

 

 

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

14.659

19.149

15.920

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

4.195

5.924

6.254

 

 

 

 

 

 

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

10.464

13.225

9.666

 

 

 

 

 

Less

TAX (I)

4.757

4.061

3.022

 

 

 

 

 

 

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

5.707

9.164

6.644

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

30.353

21.189

14.545

 

 

 

 

 

 

Balance Carried to the B/S

36.060

30.353

21.189

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

103.20

165.72

120.14

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

1.70

2.54

1.53

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

7.31

8.41

6.22

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.98

5.16

3.66

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.15

0.21

0.18

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.86

1.86

1.41

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.23

1.15

1.06

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

5.530

5.530

5.530

Reserves & Surplus

49.302

58.466

64.173

Net worth

54.832

63.996

69.703

 

 

 

 

long-term borrowings

1.736

4.836

6.439

Short term borrowings

75.759

113.882

123.317

Total borrowings

77.495

118.718

129.756

Debt/Equity ratio

1.413

1.855

1.862

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

434.958

361.423

336.416

 

 

(16.906)

(6.919)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

434.958

361.423

336.416

Profit

6.644

9.164

5.707

 

1.53%

2.54%

1.70%

 

 

 

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

No

9]

Name of person contacted

No

10]

Designation of contact person

No

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

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

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

Yes

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

No

33]

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

No

34]

External Agency Rating, if available

No

 

NOTE: Registered office of the company has been shifted from 60, Raja Muthiyah Salai Periamet Chennai – 600003, Tamilnadu, India to the present address w.e.f. 02.05.2008

 

PERFORMANCE:

 

The Company has achieved total revenue of Rs. 338.141 Millions during the year as against the total revenue of Rs. 362.851 Millions in the immediate preceding year 2012-13. With a net profit of Rs. 5.707 Millions during the year as against the net profit of Rs. 9.164 Millions in the immediate preceding year 2012-13.

 

UNSECURED LOAN

 

PARTICULARS

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Long-term Borrowings

 

 

Advance from members

6.439

4.836

Total

6.439

4.836

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10298807

06/11/2012 *

125,000,000.00

INDIAN BANK

T K M COMPLEX,, 46 - 51 KATPADI ROAD, VELLORE, TAMIL NADU - 632004, INDIA

B66371444

2

10240932

12/06/2014 *

10,000,000.00

INDIAN BANK

T K M COMPLEX, 46 - 51 KATPADI ROAD, VELLORE, TAMIL NADU - 632004, INDIA

C09980798

3

10030185

28/01/2010 *

75,000,000.00

INDIAN BANK

VANIYAMBADI BRANCH, C.L.ROAD, VANIYAMBADI, TAMILNADU - 635751, INDIA

A83016667

 

* Date of charge modification

 

FIXED ASSETS

 

  • Shed
  • Plant and Machineries
  • Office Equipments
  • Furniture and Fixtures
  • Computer etc
  • Vehicle

 

 

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.61.70

UK Pound

1

Rs.93.41

Euro

1

Rs.71.33

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KVT

 

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.