MIRA INFORM REPORT

 

 

Report No. :

327841

Report Date :

18.06.2015

 

IDENTIFICATION DETAILS

 

Name :

MELODY HEALTHCARE PRIVATE LIMITED

 

 

Registered Office :

505, Unique Tower, Behind Patel Petrol Pump, Near Kamat Club, S. V. Road, Goregaon (West), Mumbai-400062, Maharashtra

Tel. No.:

91-22-28780912

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.08.2006

 

 

Com. Reg. No.:

11-163460

 

 

Capital Investment / Paid-up Capital :

Rs.35.000 Million

 

 

CIN No.:

[Company Identification No.]

U24239MH2006PTC163460

 

 

IEC No.:

0306057531

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM31297A

 

 

PAN No.:

[Permanent Account No.]

AAECM7293G

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of active Pharmaceutical ingredients and its intermediates.

 

 

No. of Employees :

70 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company incorporated in the year 2007. It is engaged in the business of manufacturing of active pharmaceuticals ingredients and its intermediates. It has a moderate track record.

 

For the financial year ended 2014, company has reported an average operational performance and it has achieved some profit from its operations which helped company wiping off some of its accumulated losses.

 

Further, due to accumulated losses incurred over past it has hampered the net worth of the company and also has leverage balance sheet profile.

 

Moreover, it has unfavourable gap between trade receivables to its payables.

 

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

 

In view of weak balance sheet position, 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

 

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.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Shailesh

Designation :

Sales Executive

Contact No.:

91-22-28780912

Date :

17.06.2015

 

 

LOCATIONS

 

Registered Office :

505, Unique Tower, Behind Patel Petrol Pump, Near Kamat Club, S. V. Road, Goregaon (West), Mumbai-400062, Maharashtra, India

Tel. No.:

91-22-28780912

Fax No.:

91-22-28780892

E-Mail :

umachembom8@vsnl.net.in

info@melodyhealthcare.com

Website :

www.melodyhealthcare.com

 

 

Factory :

J-73, MIDC, Tarapur, Boisar- 401 506 District - Maharashtra , India

 

 

DIRECTORS

 

As on 30.09.2014

 

Name :

Mr. Dahyabhai Somabhai Patel

Designation :

Director

Address :

A-201, Adarsh Classic, Adarsh Vihar Complex, Marve Road, Malad (West)-400064, Mumbai, Maharashtra, India 

Date of Appointment :

01.08.2006

DIN No.:

00952228

 

 

Name :

Mr. Babubhai Nathabhai Patel

Designation :

Director

Address :

302, Adhishwar Apartment, 3rd Floor, M. P. Vaidhya Marg, Ghatkopar (East)-400077, Mumbai, Maharashtra, India

Date of Appointment :

01.08.2006

DIN No.:

00943732

 

 

Name :

Mr. Milind Dahyabhai Patel

Designation :

Director

Address :

A-201, Adarsh Classic, Adarsh Vihar Complex, Marve Road, Malad (West)-400064, Mumbai, Maharashtra, India

Date of Appointment :

01.08.2006

DIN No.:

01522023

 

 

Name :

Mr. Harshvardhan Singhania

Designation :

Director

Address :

28, Maheshwar Niketan, Peddar Road-400026, Mumbai, Maharashtra, India

Date of Appointment :

30.09.2011

DIN No.:

01499199

 

 

KEY EXECUTIVES

 

Name :

Mr. Shailesh

Designation :

Sales Executive

 

 

Name :

V. B. Kondalkar and Associates

Designation :

Company Secretaries

Address :

A/202, Midas Enclave, Dadiseth Agyari Road, Near Babuline Naka, Malad (West), Mumbai – 400064, Maharashtra, India

 

 

MAJOR SHAREHOLDERS

 

As on 30.09.2014

 

Names of Shareholders

No. of Shares

%age holding

Dahyabhai Somabhai Patel

699000

19.97

Babubhai Nathabhai Patel

750000

21.43

Milind Dahyabhai Patel

350000

10.00

Vinod Banwarilal Singhania

350000

10.00

Abha Singhania

350000

10.00

Shivang Rajesh Singhania

300000

8.57

Siddharth Singhania

175000

5.00

Shreya S. Singhania

175000

5.00

Harshvardhan Singhania

350000

10.00

Niraj Kumar Pasari

1000

0.03

Total

3500000

100.00

 

As on 30.09.2014

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Directors or relatives of Directors

99.97

Other top fifty shareholders

0.03

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of active Pharmaceutical ingredients and its intermediates.

 

 

Products :

Pharmaceutical Ingredients

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :

Finished Goods

Countries :
  • Bangladesh
  • Turkey

 

 

Imports :

 

Products :

Raw Material

Countries :

China

 

 

Terms :

 

Selling :

Cash, L/C and Credit

 

 

Purchasing :

Cash, L/C and Credit

 

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

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Reference :

Albion Laboratories Limited

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

  • Adavance Chemical Industries
  • Globe Pharmaceuticals Limited
  • Lupin Limited
  • Ranbaxy Laboratories Limited
  • Hermes Chemical Company Private Limited

 

 

No. of Employees :

70 (Approximately)

 

 

Bankers :

Banker Name

Allahabad Bank

Branch Address

Fort Branch, Allahabad Bank Building, Ground Floor, 37, Mumbai Samachar Marg, Mumbai-400023, Maharashtra, 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

 

  • Small Industries Development Bank of India, 11-13 Atlanta, 209, V. K. Shah Marg, Nariman Point, Mumbai - 400021, Maharashtra, India
  • State Bank of India, Industrial Finance Branch, Lekhraj Bhavan, Saki Vihar Road, Saki Naka, Mumbai-400072, Maharashtra, India

 

 

Facilities :

(Rs. In Million)

Secured Loan

As on 31.03.2014

As on

31.03.2013

LONG TERM BORROWING

 

 

Term loans from

 

 

SIDBI

0.000

0.570

HDFC Bank (Fortune Car Loan A/c)

0.981

1.657

SHORT TERM BORROWING

 

 

From Banks

 

 

Cash Credit from Allahabad Bank

23.124

23.750

Packing Credit Loan from Allahabad Bank

4.206

0.995

Overdraft from State Bank of India

1.154

2.284

Total

29.465

29.256

 

Auditors :

 

Name :

ABN and Company

Chartered Accountants

Address :

365, Mangaldas Building No. 5, 2nd Floor, Kitchen Garden Lane, Mumbai-400002 Maharashtra India

Tel. No.:

91-22-22006213

Fax No.:

91-22-22001463

E-Mail :

sckabra@hotmail.com

sckabra@mtnl.net.in

PAN No.:

AACFA7738H

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Associates/Subsidiaries :

Not Available

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

3500000

Equity Shares

Rs.10/- each

Rs.35.000 Million

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

3500000

Equity Shares

Rs.10/- each

Rs.35.000 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

35.000

35.000

35.000

(b) Reserves & Surplus

(30.634)

(37.553)

(42.904)

(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)

4.366

(2.553)

(7.904)

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

79.608

97.155

87.577

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(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)

79.608

97.155

87.577

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

117.160

98.393

79.445

(b) Trade payables

36.523

47.824

52.874

(c) Other current liabilities

14.022

14.926

24.239

(d) Short-term provisions

0.000

0.000

0.000

Total Current Liabilities (4)

167.705

161.143

156.558

 

 

 

 

TOTAL

251.679

255.745

236.231

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

141.860

145.141

100.622

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

1.156

1.610

40.472

(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)

15.011

21.581

23.974

(d)  Long-term Loan and Advances

9.062

9.814

7.864

(e) Other Non-current assets

7.724

6.771

6.743

Total Non-Current Assets

174.813

184.917

179.675

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

33.544

28.286

22.415

(c) Trade receivables

30.325

30.218

19.462

(d) Cash and cash equivalents

4.372

1.835

1.665

(e) Short-term loans and advances

8.625

10.489

13.014

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

76.866

70.828

56.556

 

 

 

 

TOTAL

251.679

255.745

236.231

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

154.800

145.816

94.423

 

Other Income

1.895

1.013

3.329

 

TOTAL

156.695

146.829

97.752

 

 

 

 

 

Less

EXPENSES

126.024

122.006

89.338

 

 

 

 

 

Less

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

30.671

24.823

8.414

 

 

 

 

 

Less

FINANCIAL EXPENSES

6.624

7.230

7.810

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

24.047

17.593

0.604

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

10.559

9.849

5.436

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

13.488

7.744

(4.832)

 

 

 

 

 

Less

TAX

6.569

2.393

(18.419)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

6.919

5.351

13.587

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

Exports of goods and products

90.725

60.833

33.483

 

TOTAL EARNINGS

90.725

60.833

33.483

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

39.662

39.315

31.911

 

Capital Goods

0.000

1.691

1.229

 

Travelling Expense

0.748

0.752

0.146

 

Commission Paid

2.635

1.295

0.820

 

Product Development Expenses

1.441

0.000

0.000

 

TOTAL IMPORTS

44.486

43.053

34.106

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

1.97

1.52

3.88

 

Particulars

 

 

 

31.03.2015

Sales Turnover (Approximately)

 

 

200.000

 

The above information has been parted by Mr. Shailesh (Sales Executive).

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

0.925

1.140

11.700

Cash generated from operations

NA

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

4.47

3.67

14.39

 

 

 

 

 

Operating Profit Margin

(PBDIT / Sales)

(%)

19.81

17.02

8.91

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

5.73

3.33

(2.81)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

3.09

(3.03)

0.61

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

45.28

(77.04)

(22.61)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.46

0.44

0.36

 

 

 

 

 

 

 

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

35.000

35.000

35.000

Reserves & Surplus

(42.904)

(37.553)

(30.634)

Net worth

(7.904)

(2.553)

4.366

 

 

 

 

long-term borrowings

87.577

97.155

79.608

Short term borrowings

79.445

98.393

117.160

Current Maturities of Long Term Debt

11.700

1.140

0.925

Total borrowings

178.722

196.688

197.693

Debt/Equity ratio

(22.612)

(77.042)

45.280

 

 

 

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

94.423

145.816

154.800

 

 

54.428

6.161

 

 

 

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

94.423

145.816

154.800

Profit

13.587

5.351

6.919

 

14.39%

3.67%

4.47%

 

 

 

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

No

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

No

18

Major suppliers

No

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 four 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

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

33

Market information

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

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

OPERATIONS

 

During the year, the Company has recorded sales of Rs.154.800 Million as compared to that of last year of Rs.145.816 Million and has generated Other Income of Rs.1.895 Million in the current financial year as compared to that of Rs.1.013 Million, for corresponding previous year.

 

The Company has earned net profit to the tune of Rs.6.919 Million as compared to net profit of Rs.5.351 Million in respect of the corresponding previous year, after considering the appropriate tax adjustments.

 

Barring unforeseen circumstances, further improvement in sale and profitability is expected in the current year in view of continued efforts being made. Further the company is taking effective steps to strengthen the profitability and financial soundness of the Company.

 

 

UNSECURED LOAN

(Rs. In Million)

Particular

As on 31.03.2014

As on

31.03.2013

LONG TERM BORROWING

 

 

Loans from related paties

 

 

Babubhai N Patel

1.600

1.600

Dhyabhai S Patel

3.037

3.038

Harshvardhan Singhania

11.000

13.500

Jaimin D Patel

1.000

1.000

Milind D Patel

2.650

2.650

Mithabhai S Patel

0.800

0.800

Shakti Construction

58.540

57.340

Vinod Singhania

0.000

15.000

SHORT TERM BORROWING

 

 

From Bodies Corporate

 

 

Aadishwar Diamonds Private Limited

3.000

3.243

Anshul Gems Private Limited

1.621

1.500

Apsara Multi Trade Private Limited

7.500

8.108

Babubhai Diamonds Private Limited

3.578

2.429

Chaitanya Gems Private Limited

4.324

4.659

Laxmi Orgranic Indutries Limited

3.500

3.500

Shikha Diamonds Private Limited

0.000

0.525

Siddharth Colorchem Private Limited (a Related party)

14.900

47.400

From Others

 

 

Niraj Kumar Pasari

50.253

0.000

Total

167.303

166.292

 

 

 

 

 

INDEX OF CHARGES

 

S. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10320882

09/11/2011

75,000,000.00

ALLAHABAD BANK

Fort Branch, Allahabad Bank Building, Ground Floor, 37, Mumbai Samachar Marg, Mumbai - 400023, Maharashtra , INDIA

B26729764

 

* Date of charge modification

 

 

FIXED ASSETS

 

  • Factory Building
  • Furniture and Fixture
  • Plant and Machinery
  • Electric Installation
  • Motor Car
  • Lab 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 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.64.11

UK Pound

1

Rs.100.31

Euro

1

Rs.72.16

 

 

INFORMATION DETAILS

 

Information Gathered by :

SPY

 

 

Analysis Done by :

TRI

 

 

Report Prepared by :

PNM

 

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

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

 

27

 

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.