MIRA INFORM REPORT

 

 

Report No. :

326130

Report Date :

08.06.2015

 

IDENTIFICATION DETAILS

 

Name :

METROCITY TILES PRIVATE LIMITED

 

 

Registered Office :

C/O Common Wealth Tiles, Sasar Plot, Opposite Dr. Mankad Hospital, Morbi – 363641, Gujarat

Tel. No.:

91-2822-23890

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

09.01.2007

 

 

Com. Reg. No.:

04-049735

 

 

Capital Investment / Paid-up Capital :

Rs. 49.050 Million

 

 

CIN No.:

[Company Identification No.]

U26933GJ2007PTC049735

 

 

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 of Tiles

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

The rating is constrained on account of MCTPL’s moderate scale of operations and its weak financial risk profile characterized by low net margins, stressed liquidity, high gearing levels and moderate coverage indicators.

 

However, trade relations are fair. Business is active. Payments 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.

 

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

ICRA

Rating

Long term fund based – Cash credit facility = “B”

Rating Explanation

Risk-prone-credit-quality and carries very high credit risk.

Date

March 15

 

 

Rating Agency Name

ICRA

Rating

Short term Non-fund based limits = “A4”

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

March 15

 

 

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.

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. K Jadeja

Designation :

Export Department

Contact No.:

91-9925001455

Date :

06.06.2015

 

 

LOCATIONS

 

Registered Office :

C/O Common Wealth Tiles, Sasar Plot, Opposite Dr. Mankad Hospital, Morbi – 363641, Gujarat, India

Tel. No.:

91-2822-23890

Mobile No.:

91-9925001455 (Mr. K Jadeja)

Fax No.:

Not Available

E-Mail :

export@groupofmetro.com

exportmetrogroup@gmail.com

metro@svtindia.com

Location :

Owned

 

 

Factory:

8 A, National Highway, Lakhdhirpur Road, Morbi, Gujarat, India

 

 

Branch Office:

3-Agrawal Mall, Gota Cross Road, Ahmedabad, Gujarat, India

 

 

DIRECTORS

 

As on 30.09.2014

 

Name :

Mr. Chandrashekhar Ratilal Adroja

Designation :

Director

Address :

Kayaji Plot, Morbi – 363641, Gujarat, India

Date of Birth/Age :

06.10.1979

Date of Appointment :

09.01.2007

DIN No.:

00700877

 

 

Name :

Mr. Dilip Ratilal Adroja

Designation :

Director

Address :

3- Umiya Apartment, 2nd Floor, Kayaji Plot, Morbi – 363641, Gujarat, India

Date of Birth/Age :

06.04.1974

Date of Appointment :

09.01.2007

DIN No.:

00915853

 

 

Name :

Mr. Tribhovan Laljibhai Patel

Designation :

Director

Address :

Block No. 10, Parshuram Society, Morbi – 363642, Gujarat, India

Date of Birth/Age :

20.07.1964

Date of Appointment :

01.06.2011

DIN No.:

03373269

 

 

Name :

Mr. Ramjibhai Arjanbhai Adroja

Designation :

Director

Address :

501, Shravan Setu Apartment, Near Umiya Chowk, Morbi – 363641, Gujarat, India

Date of Birth/Age :

10.03.1966

Date of Appointment :

01.06.2011

DIN No.:

03373281

 

 

Name :

Mr. Bhanuben Tribhovanbhai Adroja

Designation :

Director

Address :

Parshuram Society, B No. 10, Nazarbag Road, Morbi – 363642, Gujarat, India

Date of Birth/Age :

01.09.1966

Date of Appointment :

01.06.2011

DIN No.:

03557979

 

 

Name :

Mr. Hiteshkumar Maganbhai Padaliya

Designation :

Director

Address :

Arjun, Gautam Society, Near Janta Society, Morbi – 363641, Gujarat, India

Date of Birth/Age :

16.10.1978

Date of Appointment :

01.06.2011

DIN No.:

03557995

 

 

Name :

Mr. Ritaben Dilipbhai Adroja

Designation :

Director

Address :

Block No. 10, Parshuram Society, Morbi – 363642, Gujarat, India

Date of Birth/Age :

23.10.1976

Date of Appointment :

01.06.2011

DIN No.:

03558008

 

 

KEY EXECUTIVES

 

Name :

Mr. K Jadeja

Designation :

Export Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

SHAREHOLDING DETAIL FILE ATTACHED

 

Equity Share Break up (Percentage of Total Equity)

 

As on 30.09.2014

 

Category

Percentage

Bodies corporate

1.54

Directors or relatives of Directors

98.46

Total

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Tiles

 

 

Products :

Not Available

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :

Finished Goods

Countries :
  • Europe
  • Iraq
  • Qutar
  • Dubai
  • Kuwait
  • Saudi Arabia

 

 

Imports :

 

Products :

Raw Material

Countries :
  • China
  • Australia

 

 

Terms :

 

Selling :

Cheque and Credit 

 

 

Purchasing :

Cheque and Credit 

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :
  • Aashashree Freight Forwarders Private Limited.- Ahmedabad
  • Alfa Chem-Morbi
  • Amrut Tours and Travels-Morbi
  • Amtulla Minerals-Jodhpur
  • Anil Minerals-Bikaner
  • Aron Impex- Morbi
  • Arya Translogistics Private Limited.- Gandhidharn
  • Ashok Electric Company-Morbi
  • Balaji Sieel Corporation-Morbi
  • Balh Interior Tiles-Ghaziabad
  • Bhumi Trading Company- Morbi
  • Capco Chem Industries -Morbi
  • Casablance Sales and Trading Private Limited
  • Clwbhuja Minchem Private Limited -Rajsamand
  • Classic Sales Corporation-Vaaodara
  • Commonwealth Minerals Inc.-Morbi.
  • Cringe Graphics-Wakaner
  • Dev Products-Bhavnagar
  • Dhl Express India Private Limited (Mumbai)

 

 

Customers :

Retailers, OEMs and End Users

 

  • Advanto Tiles Private Limited -Morbi
  • Aggaiwal Trading Company-Baraut
  • Aggarwal Trading Co-Mukerian
  • A.G.Traders-Wadsa
  • Anand Tiies (Gorakhapur)
  • Anand Tiles and Sanitary Ware (Luckncw)
  • Anna Stone Tranding-Aurangabad
  • Anhant Marketing-Banglore
  • Balaji Enterprise-Thane
  • Balan Floor Wall Tiles-Vellore
  • Balaji Tiles and Sanitary Wares-NepE I
  • Balaji Tiles (Una)
  • Bath and Sanitary World- Lucknow
  • Bhagwati Enterprises-Jalandhar
  • Bhagwati Sales Corporation-Gahiziabad
  • Chandrasing Madliavsing-Bhavnagar
  • Chopra Marble Industry (Hamirpjr)
  • Chopra Trading Company-Hamirpur

 

 

No. of Employees :

500 (Approximately) 

 

 

Bankers :
  • State Bank of India, Para Bazar Branch, Near G.P.O, Morbi - 363641, Gujarat, India
  • State Bank of Saurashtra, Main Branch, Near G.P.O. Morbi, - 363641, Gujarat, India

 

 

Facilities :

(Rs. In Million)

SECURED LOAN

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWING

 

 

State Bank of India-Morbi Branch Term Loan-Il A/c.No.32283228301 Against Hypo, of Plant and machinery and E. M. of Factory Land and Building of the Company.

0.000

6.560

State Bank of India-Morbi Branch Term Loan-Ill A/c.No.32699740033 Against Hypo, of Plant andmachinery and E. M. of Factory Land and Building of the Company.

8.708

12.908

 

 

 

SHORT TERM BORROWING

 

 

State Bank of India /C A/c- Parabazar Branch Against Hypothecation of Stock and Book Debts

79.402

4.910

State Bank of India C/C A/c- Lalpar Brach (Part Limit) Against Hypothecation of Stock and Book Debts Part Limit With Parabazar Branch

0.000

72.583

Total

88.110

96.961

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Pratik Rajdev and Associates

Chartered Accountants

Address :

201, 'JE Bhagwan' Complex, Ram Chowk, Savsar Plot Main Road, Morbi – 363641, Gujarat, India

Mobile No.:

91-8866270004

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

AZEPR9432N

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Sister Concern :
  • Metro World
  • Metro Ceramics

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5,750,000

Equity Shares

Rs.10/- each

Rs.57.500 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

4,905,000

Equity Shares

Rs.10/- each

Rs. 49.050 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

49.050

49.050

41.550

(b) Reserves & Surplus

37.602

34.646

40.623

(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)

86.652

83.696

82.173

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

41.587

40.163

12.333

(b) Deferred tax liabilities (Net)

1.697

1.342

1.272

(c) Other long term liabilities

34.930

28.967

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

78.214

70.472

13.605

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

79.402

77.493

68.065

(b) Trade payables

105.769

75.288

69.527

(c) Other current liabilities

33.683

29.654

18.040

(d) Short-term provisions

0.770

0.000

1.700

Total Current Liabilities (4)

219.624

182.435

157.332

 

 

 

 

TOTAL

384.490

336.603

253.110

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

138.964

112.554

72.218

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

37.167

9.995

(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

16.064

14.964

11.711

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

155.028

164.685

93.924

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

118.867

89.007

61.688

(c) Trade receivables

103.295

65.856

88.863

(d) Cash and cash equivalents

2.257

1.785

3.626

(e) Short-term loans and advances

5.008

15.270

2.759

(f) Other current assets

0.035

0.000

2.250

Total Current Assets

229.462

171.918

159.186

 

 

 

 

TOTAL

384.490

336.603

253.110

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

323.429

183.51

339.977

 

Other Income

6.500

11.806

0.552

 

TOTAL

329.929

195.316

340.529

 

 

 

 

 

Less

EXPENSES

 

 

 

 

TOTAL

305.444

188.331

324.15

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

24.485

6.985

16.379

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

20.404

12.893

11.432

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

4.081

(5.908)

4.947

 

 

 

 

 

Less

TAX

1.125

0.069

1.600

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

2.956

(5.977)

3.347

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

0.60

(1.22)

 NA

 

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

13.989

14.596

5.637

Cash generated from operations

NA

NA

NA

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

0.91

(3.26)

0.98

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.06

(1.97)

2.03

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.05

(0.07)

0.06

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.40

1.41

0.98

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.04

0.94

1.01

 

 

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

41.550

49.050

49.050

Reserves & Surplus

40.623

34.646

37.602

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

82.173

83.696

86.652

 

 

 

 

long-term borrowings

12.333

40.163

41.587

Short term borrowings

68.065

77.493

79.402

Current Maturities Of Long-Term Debts

5.637

14.596

13.989

Total borrowings

86.035

132.252

134.978

Debt/Equity ratio

1.047

1.580

1.558

 

 

 

 

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

339.977

183.510

323.429

 

 

(46.023)

(76.246)

 

 

 

 

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

339.977

183.510

323.429

Profit

3.347

(5.977)

2.956

 

0.98%

(3.26%)

0.91%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

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)

Yes

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

Yes

19

Major customers

Yes

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

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

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

 

 

COMPANY PERFORMANCE:

 

The company has reported revenue from operation during the year of Rs. 323.429 Million as compared to the previous year’s revenue from operation of Rs.183.511 Million and the company has incurred net loss of Rs. 2.956 Million as compared to the previous year’s loss of Rs. 5.977 Million.

 

 

UNSECURED LOAN

(Rs. In Million)

PARTICULARS

31.03.2014

31.03.2013

Long-term Borrowings

 

 

From Director

 

 

Chandrashekharbhai Ratilal Adroja

1.769

0.370

Dilipbhai Ratilal Adroja

0.225

0.025

 

 

 

From Share Headers S Relatives

 

 

Jayaben Maganlal

0.300

0.300

Chandrakanibhdi Karshanbhai Detroja

1.000

1.000

Ketankumar Manjibhai Dakhra

1.000

0.000

Sunilbhai Popatbhai Dakhra

1.000

0.000

From Others

 

 

Lexus Ceramic Private Limited

0.500

0.500

Melro Ceramic

14.019

13.350

Commonwealth Sales Agency

1.000

0.000

Fashion Marble and Granite Company Private Limited

0.192

0.000

Metro World Tiles Private Limited

6.874

0.000

Krishna Magnet and Vibro

0.000

0.150

S. B. Enterprise

3.325

3.325

Shree Ambaji Enterprise

1.675

1.675

 

 

 

Total

32.879

20.695

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10102748

12/11/2012 *

186,200,000.00

STATE BANK OF INDIA

PARA BAZAR BRANCH, NR. G.P.O, MORBI, GUJARAT - 36
3641, INDIA

B62740907

* Date of charge modification

 

 

FIXED ASSETS

  • Factory Land
  • Factory Land (New
  • Machinery
  • Import Machinery
  • Plant and Machinery
  • Spray Dryer
  • D G Set
  • Electric Fittings
  • Motor Car Innova
  • Computer
  • Office Equipment
  • Office Furniture
  • Motor Car Cruze

 

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.63.89

UK Pound

1

Rs.97.98

Euro

1

Rs.71.82

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ART

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILITY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

26

 

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.