MIRA INFORM REPORT

 

 

Report No. :

330828

Report Date :

08.07.2015

 

IDENTIFICATION DETAILS

 

Name :

SUZUKI MOTORCYCLE INDIA PRIVATE LIMITED (w.e.f 14.07.2014)

 

 

Formerly Known As :

SUZUKI MOTORCYCLE INDIA LIMITED (w.e.f. 23.08.2013)

 

INTEGRA OVERSEAS PRIVATE LIMITED

 

 

Registered Office :

2nd Floor, Plot No.1, Nelson Mandela Road, Vasant Kunj, New Delhi – 110070,

Tel. No.:

91-11-43127114

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

25.04.1997

 

 

Com. Reg. No.:

55-086871

 

 

Capital Investment / Paid-up Capital :

Rs.7815.532 Million

 

 

CIN No.:

[Company Identification No.]

U74899DL1997FTC086871

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DEL104579B

 

 

PAN No.:

[Permanent Account No.]

AAACI5832P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Two Wheelers and Spare Parts  

 

 

No. of Employees :

Not Divulged 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (41)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 8600000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exist

 

 

Comments :

Suzuki Motorcycle India Private Limited operates as a subsidiary of “Suzuki Motor Corporation” Japan. Suzuki Motorcycle India Private Limited manufactures and sells two wheelers in India. The company offers motorcycle and scooters.

 

Subject is established company and it is having satisfactory track record.

 

Company have incurred continuous accumulated losses over past few years from its business operation which have led to deterioration in the capital structure of the company.

 

However the rating  take in accounts of strong financial and managerial support which company receives from its holding company and its moderate brand presence into two wheelers industry.

 

Trade relation are fair. Business is active. Payments are reported to be slow but correct.

 

In view of strong support from “Suzuki Motor Corporation” Japan, the company can be considered for the business dealings with its usual trade terms and conditions. 

 

NOTES :

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

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

 

 

LOCATIONS

 

Registered Office/ Sales and Marketing Office :

2nd Floor, Plot No.1, Nelson Mandela Road, Vasant Kunj, New Delhi – 110070, India

Tel. No.:

91-11-26253125/43127114

Fax No.:

91-11-46075418, 91-124-4170702

E-Mail :

singh.amit@suzukimotorcycle.in

sharma.himani@suzukimotorcycle.in

Website :

http://www.suzukimotorcycle.in

 

 

Factory  :

Village Kherki Daula, Badshapur NH 8, Link Road, Behind Haldiram, Gurgaon - 122004, Haryana, India

Tel. No.:

91-124-4170700 / 4170725

Fax No.:

91-124-4170701/ 4117325

 

 

DIRECTORS

 

AS ON 24.09.2014

 

Name :

Mr. Saqulain Yasin Siddiqui

Designation :

Director

Address :

B-268, Sector – 26, Noida-201301, Uttar Pradesh, India

Date of Birth/Age :

01.07.1958

Date of Appointment :

29.09.2007

DIN No.:

00045925

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

U74999DL2002PLC113812

MARUTI INSURANCE DISTRIBUTION SERVICES LIMITED

Nominee director

03/02/2006

03/02/2006

-

Active

NO

2

U74899DL1997FTC086871

SUZUKI MOTORCYCLE INDIA Private Limited

Director

29/09/2007

12/03/2007

-

Active

NO

3

U27109DL2002PLC117679

SUZUKI POWERTRAIN INDIA LIMITED

Director

23/04/2007

23/04/2007

16/05/2008

Amalgamated

NO

 

 

Name :

Mr. Jun Hashimoto

Designation :

Whole Time Director

Address :

Room No.501, Japanses Hostel Cum Restaurant, Opposite To MDI Gate 3, Adjacent To NH-8, Gurgaon-122001, Haryana, India

Date of Birth/Age :

20.06.1986

Date of Appointment :

11.07.2014

DIN No.:

03450324

 

 

 

 

Name :

Masayoshu Ito

Designation :

Managing Director

Address :

Room No.213, Japanses Hostel Cum Restaurant, Opposite To MDI Gate 3, Adjacent To NH-8, Gurgaon-122001, Haryana, India

Date of Birth/Age :

01.01.1964

Date of Appointment :

11.07.2014

DIN No.:

06916967

 

 

Name :

Hiroshi Ema

Designation :

Additional Director

Address :

Room No. 229, Jukaso IT Suits IT Composite Towers, 1, IDC, Meharauli, Road, Sector – 14, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

20.12.0956

Date of Appointment :

24.09.2014

DIN No.:

06680285

 

 

KEY EXECUTIVES

 

Name :

Mr. Himani Sharma

Designation :

Secretary

Address :

H No.11A, Chattarpur Village, New Delhi-110074, India

Date of Birth/Age :

07.01.1988

Date of Appointment :

25.09.2012

PAN No.:

AEDPH9628E

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 24.09.2014

 

Names of Shareholders

No. of Shares

Suzuki Motor Corporation, Japan

781553194

Suzuki Business Corporation, Japan

1

Suzuki Transportation and Packing company Limited, Japan

1

Suzuki Consultants Company Limited, Japan

1

Suzuki Auto Parts Mfg. Company Limited, Japan

1

Suzuki Motorcycle Sales Inc, Japan

1

Suzuki Finance Company Limited, Japan

1

 

 

Total

781553200

 

Equity Share Break up (Percentage of Total Equity)

 

AS ON 24.09.2014

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

 

 

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Two Wheelers and Spare Parts  

 

 

Products :

Item Code No.

Product Description

Two Wheelers

8711

Spare Parts

8714

Motor Cycle and Scooter

87112029

Parts and Accessories

87141090

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

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 No.:

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 No.:

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 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

 

 

Auditors :

 

Name :

V Sankar Aiyar and Company

Charted Accountant

Address :

202-301, Satyam Cinema Complex, Ranjit Nagar Community, New Delhi – 110008, Delhi, India

Tel. No.:

91-124-25702074/25702691/25704639

Fax No.:

91-124-2549101

PAN No.:

AAAFV0781D

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Company :
  • Suzuki Motor Corporation

 

 

Fellow Subsidiaries :
  • Maruti Suzuki India Limited, India

CIN No.: L34103DL1981PLC011375

  • Suzuki Motor De Colombia S.A., Colombia

 

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:
  • Changzhou Haojue Suzuki Motorcycle Company Limited, China

 

 

CAPITAL STRUCTURE

 

AS ON 24.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

850000000

Equity Shares

Rs.10/- each

Rs. 8500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

781553200

Equity Shares

Rs.10/- each

Rs. 7815.532 Million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

ABRIDGED BALANCE SHEET

 

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

7815.532

7815.532

7815.532

(b) Reserves & Surplus

(4777.349)

(4293.372)

(3948.894)

(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)

3038.183

3522.160

3866.638

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.075

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

83.125

71.414

58.314

(d) long-term provisions

31.093

23.738

15.43

Total Non-current Liabilities (3)

114.218

95.152

73.819

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 0.000

 0.000

 0.000

(b) Trade payables

1923.309

1695.597

2117.161

(c) Other current liabilities

369.555

221.796

205.948

(d) Short-term provisions

160.003

92.261

100.782

Total Current Liabilities (4)

2452.867

2009.654

2423.891

 

 

 

 

TOTAL

5605.268

5626.966

6364.348

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2564.848

2571.404

2352.762

(ii) Intangible Assets

20.339

9.288

5.387

(iii) Capital work-in-progress

374.293

35.604

147.877

(iv) Intangible assets under development

0.732

1.001

2.34

(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

177.221

30.912

62.953

(e) Other Non-current assets

 

10

10

Total Non-Current Assets

3137.433

2658.209

2581.319

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 0.000

 0.000

 0.000

(b) Inventories

332.299

428.127

349.938

(c) Trade receivables

54.777

20.596

18.551

(d) Cash and cash equivalents

1024.483

1563.212

2411.855

(e) Short-term loans and advances

858.976

771.833

877.266

(f) Other current assets

197.300

184.989

125.419

Total Current Assets

2467.835

2968.757

3783.029

 

 

 

 

TOTAL

5605.268

5626.966

6364.348

 

 

PROFIT & LOSS ACCOUNT

 

 

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

13822.293

14538.288

12246.581

 

 

Other Income

N.A

216.896

266.560

 

 

TOTAL                                    

N.A

14755.184

12513.141

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

12550.701

10646.651

 

 

Purchases of stock-in-trade

 

563.914

449.808

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

 

(98.170)

(113.838)

 

 

Employee benefit expense

 

396.174

285.920

 

 

Other expenses

 

1389.465

1002.648

 

 

TOTAL                                    

N.A

14802.084

12271.189

 

 

 

 

 

Less

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

N.A

(46.900)

241.952

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

N.A

2.008

5.828

 

 

 

 

 

 

PROFIT/(LOSS)  BEFORE TAX, DEPRECIATION AND AMORTISATION                          

(157.819)

(48.908)

236.124

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

326.157

295.569

247.084

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX

(483.976)

(344.477)

(10.960)

 

 

 

 

 

Less

TAX                                                                 

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT/(LOSS)  AFTER TAX

(483.976)

(344.477)

(10.960)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(4293.372)

(3948.895)

(3937.935)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(4777.348)

(4293.372)

(3948.895)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

699.788

383.871

995.548

 

TOTAL EARNINGS

699.788

383.871

995.548

 

 

 

 

 

 

Earnings/Loss Per Share (Rs.)

 (0.62)

(0.44)

(0.01)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

N.A

N.A

N.A

Cash generated from operations

N.A

N.A

N.A

Net cash flows from operating activities

167.774

(662.8,52)

790.711

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

(3.50)

(2.37)

(0.09)

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

1.14

0.34

1.93

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(9.25)

(6.16)

(0.18)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.16)

(0.10)

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.01

1.48

1.56

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

7815.532

7815.532

7815.532

Reserves & Surplus

(3948.894)

(4293.372)

(4777.349)

Net worth

3866.638

3522.160

3038.183

 

 

 

 

long-term borrowings

0.075

0.000

0.000

Short term borrowings

0.000

0.000

0.000

Total borrowings

0.075

0.000

0.000

Debt/Equity ratio

0.000

0.000

0.000

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

12246.581

14538.288

13822.293

 

 

18.713

(4.925)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

12246.581

14538.288

13822.293

Profit

(10.960)

(344.477)

(483.976)

 

(0.09)%

(2.37)%

(3.50)%

 

 

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

No

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

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

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

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

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

LITIGATION DETAILS

IN THE HIGH COURT OF DELHI AT NEW DELHI

16

    O.M.P. 883/2013

K T HOLIDAYS PRIVATE LIMITED ..... Petitioner

Through: Mr. Amit George, proxy counsel.

Versus

 

SUZUKI MOTORCYCLE INDIA PVT LTD ..... Respondent

Through: Ms. Priyanka Kapoor, proxy counsel.

                          

                                             CORAM: JUSTICE S.MURALIDHAR

O R D E R

% 13.05.2015

1. Lawyers are abstaining from work.

2. List for hearing on 11th September 2015.

MAY 13, 2015

Rk

 

 

S.MURALIDHAR, J

 

 

OPERATIONS

During the year ended March 31 st 2014 the Company has produced 361,556 numbers of Motorcycles/ Scooters as compared to 419235 numbers of Motorcycles / Scooters produced during last year. The total numbers of Motorcycles/ Scooters sold during the year ended on March 31st, 2014 were 3,66,262 in comparison to 416223 Motorcycles /Scooters sold during last financial year.

 

NOTE: Registered office of the company has been shifted from 100 South Extn Plaza - I389, Masjid Moth South Extn Part -II, New Delhi - 110070, India to the present  address w.e.f. 02.03.2009

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

 

FIXED ASSETS

·         Land – Free Land

·         Furniture and Fixture

·         Computers

·         Motor Vehicles

·         Office Equipment

·         Quality Control Equipment

 

 

 

 

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.63.37

UK Pound

1

Rs.98.85

Euro

1

Rs.69.96

 

 

INFORMATION DETAILS

 

Analysis Done by :

KSH

 

 

Report Prepared by :

RKI

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILITY

1~10

 

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

 

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

YES

 

--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

 

41

 

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.