MIRA INFORM REPORT

 

 

Report No. :

324278

Report Date :

27.05.2015

 

IDENTIFICATION DETAILS

 

Name :

SEWING SYSTEMS PRIVATE LIMITED

 

 

Registered Office :

Springdale, II Floor, 51 Residency Road, 1st Cross Bangalore - 560025 Karnataka

Tel. No.:

91-80-25320855

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

09.12.1982

 

 

Com. Reg. No.:

08-005067

 

 

Capital Investment / Paid-up Capital :

Rs 30.000 million

 

 

CIN No.:

[Company Identification No.]

U33111KA1982PTC005067

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRS00830E

 

 

PAN No.:

[Permanent Account No.]

AAECS2275G

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trading of Garment Accessories.

 

 

No. of Employees :

120 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

 

Maximum Credit Limit :

USD 240000

 

 

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 and healthy. 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 condition.

 

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

 

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.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Gudi

Designation :

General Manager

Contact No.:

91-9341264320

Date :

25.05.2015

 

 

LOCATIONS

 

Registered Office /HeadOffice :

Springdale, II Floor, 51 Residency Road, 1st Cross Bangalore - 560025 Karnataka, India

Tel. No.:

91-80-25320855

Mobile No.:

91-9341264320 (Mr. Gudi)

Fax No.:

91-80-25320866

E-Mail :

bangalore@sewingsystem.in

Website :

www.sewingsystems.in

Location :

Owned

                              Locality:

Commercial

 

 

Branch Offices:

Located at

 

·         New Delhi

·         Kanjur Marg (West), Mumbai

·         Chennai

·         Tripur

·         Kolkata

·         Howrah

 

 

DIRECTORS

 

AS ON 30.09.2014

 

Name :

Mr. Pavan Kapoor

Designation :

Managing director

Address :

301, Embassy Corner, Vittal Mallya Road, Bangalore-560001, Karnataka, India

Date of Birth/Age :

04.09.1952

Date of Appointment :

09.12.1982

DIN No.:

01294461

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

COMPANY/ LLP STATUS

DEFAULTING STATUS

 

1

U33111KA1982PTC005067

SEWING SYSTEMS PRIVATE LIMITED

MANAGING DIRECTOR

09-12-1982

09-12-1982

ACTIVE

NO

 

2

U74899DL1985PTC022867

IIGM PRIVATE LIMITED.

DIRECTOR

26-12-1985

26-12-1985

ACTIVE

NO

 

3

U70109KA1984PTC006102

SPRING DALE HOLDINGS PRIVATE LIMITED

DIRECTOR

09-07-1999

09-07-1999

ACTIVE

NO

 

4

U18101KA2006PTC039052

HANSEL TEXTILE SYSTEMS PRIVATE LIMITED

DIRECTOR

21-04-2006

19-04-2006

ACTIVE

NO

 

5

U18101KA2006PTC039510

ORION APPAREL TRIMS PRIVATE LIMITED

DIRECTOR

27-05-2006

27-05-2006

ACTIVE

NO

 

6

U55100KA2011PTC056646

WATERWOODS LODGE & RESORTS PRIVATE LIMITED

DIRECTOR

15-04-2011

15-04-2011

ACTIVE

NO

 

7

U52602KA2012PTC062644

ISHARKMART PRIVATE LIMITED

DIRECTOR

22-02-2012

22-02-2012

-

ACTIVE

NO

 

 

Name :

Mr. Jasbir Singh Dhody

Designation :

Director

Address :

#1/27, Assaye Road, 3rd Cross, Bangalore-560042, Karnataka, India

Date of Birth/Age :

01.09.1957

Date of Appointment :

01.04.1996

DIN No.:

02453354

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

COMPANY/ LLP STATUS

DEFAULTING STATUS

1

U33111KA1982PTC005067

SEWING SYSTEMS PRIVATE LIMITED

DIRECTOR

01-04-1996

01-04-1996

ACTIVE

NO

2

U18101KA2006PTC039052

HANSEL TEXTILE SYSTEMS PRIVATE LIMITED

MANAGING DIRECTOR

15-04-2009

19-04-2006

ACTIVE

NO

3

U18101KA2006PTC039510

ORION APPAREL TRIMS PRIVATE LIMITED

DIRECTOR

17-05-2006

17-05-2006

ACTIVE

NO

 

 

Name :

Mr. Arjun Kapoor

Designation :

Director

Address :

No.E-5, Epsilon Villas, Yemlur Home Owners Association, Yemlur Village, Bangalore-560037, Karnataka, India

Date of Birth/Age :

23.01.1984

Date of Appointment :

18.07.2014

DIN No.:

02959190

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

COMPANY/ LLP STATUS

DEFAULTING STATUS

1

U70109KA1984PTC006102

SPRING DALE HOLDINGS PRIVATE LIMITED

DIRECTOR

01-03-2010

01-03-2010

ACTIVE

NO

2

U74899DL1985PTC022867

IIGM PRIVATE LIMITED.

DIRECTOR

12-01-2011

12-01-2011

ACTIVE

NO

3

U55100KA2011PTC056646

WATERWOODS LODGE AND RESORTS PRIVATE LIMITED

DIRECTOR

15-04-2011

15-04-2011

ACTIVE

NO

4

U52602KA2012PTC062644

ISHARKMART PRIVATE LIMITED

DIRECTOR

22-02-2012

22-02-2012

ACTIVE

NO

5

U33111KA1982PTC005067

SEWING SYSTEMS PRIVATE LIMITED

DIRECTOR

18-07-2014

18-07-2014

ACTIVE

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. Gudi

Designation :

General Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2014

 

Names of Shareholders

No. of Shares

 

Percentage of Holding

Pavan Kapoor

1000000

33.33

Rashmi Kapoor

275000

9.17

Jasbir Singh Dhody

900000

30.00

Karthik Kapoor

500000

16.67

Arjun Kapoor

325000

10.83

Total

3000000

100.00

 

 

 

 

AS ON 30.09.2014

 

Equity Share Breakup

Percentage of Holding

Category

 

Directors or relatives of directors

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trading of Garment Accessories.

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

 

Products :

Garment Accessories

Countries :

Bangladesh

 

 

Imports :

 

Products :

Garment Accessories

Countries :

·         China

·         Japan

·         UK

 

 

Terms :

 

Selling :

Cash and Cheque

 

 

Purchasing :

Cash and Cheque

 

 

PRODUCTION STATUS (AS ON 31.03.2014):  NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

·         Expo Freight Private Limited

·         SeAir Impex

·         Shyam Enterprise

·         Suriya Enterprises-Bangalore

·         High Hope Aglory Limited

 

 

Customers :

Wholesalers, Retailers and End Users

 

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

·         Arvind Group-Ahmedabad/Bangalore

·         A P Fashion Private Limited-Bangalore

·         Asia Pacific-Tripur

·         Balaji Finishing- Bangalore

·         Birla VXL-Delhi

 

 

No. of Employees :

120 (Approximately)

 

 

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 A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks:

Not Divulged

 

·         HDFC Bank Limited

·         State Bank of India

·         ICICI Bank

 

 

Facilities :

 

SECURED LOANS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Kotak Mahindra Prime Limied

0.309

0.619

ICICI Bank Auto Loan BNG00027181976

1.212

0.000

 

 

 

Total

1.521

0.619

 

 

 

Banking Relations :

--

 

 

Financial Institution:-

3i Infotech Trusteeship Service Limited

3rd to 6th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai-400703, Maharashtra, India

 

 

Auditors :

 

Name :

S P Gupta and Company

Chartered Accountants

Address :

NO.116, Pride Hulkul, Room No.303, 3rd Floor, Lalbagh Road, Bangalore-560027, Karnataka, India

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

AASPG4388D

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Company :

Orion Apparel Trims Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs. 10/- each

Rs. 50.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3000000

Equity Shares

Rs. 10/- each

Rs. 30.000 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

30.000

6.000

6.000

(b) Reserves & Surplus

53.881

70.499

62.097

(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)

83.881

76.499

68.097

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

1.521

0.619

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

37.840

32.408

26.154

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

39.361

33.027

26.154

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

0.000

0.000

0.000

(c) Other current liabilities

0.000

0.000

0.000

(d) Short-term provisions

0.000

0.000

0.000

Total Current Liabilities (4)

0.000

0.000

0.000

 

 

 

 

TOTAL

123.242

109.526

94.251

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

16.993

16.642

17.511

(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

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

9.253

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

16.993

16.642

26.764

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

30.199

12.345

0.000

(b) Inventories

17.430

13.791

15.187

(c) Trade receivables

46.450

46.041

40.976

(d) Cash and cash equivalents

12.170

20.707

11.324

(e) Short-term loans and advances

0.000

0.000

0.000

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

106.249

92.884

67.487

 

 

 

 

TOTAL

123.242

109.526

94.251

 

 

                                                                    PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

TOTAL                                    

184.599

168.235

159.852

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

169.111

153.755

149.929

 

 

 

 

 

 

PROFIT BEFORE TAX 

15.488

14.480

9.923

 

 

 

 

 

Less

TAX                                                                 

8.107

6.078

                  NA

 

 

 

 

 

 

PROFIT AFTER TAX                

7.381

8.402

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.460

2.801

NA

 

 

PARTICULARS

 

 

31.03.2016

Projected

31.03.2015

Projected

Sales Turnover (Approximately)

 

400.000

340.000

 

 

 

 

 

The above information has been parted by Mr. Gudi (General Manager)

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

NA

NA

NA

 

 

 

 

Cash generated from operations

NA

NA

NA

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT/Sales)

(%)

4.00

4.99

0.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

12.57

13.22

10.53

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.18

0.19

0.15

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.02

0.01

0.00

 

 

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

6.000

6.000

30.000

Reserves & Surplus

62.097

70.499

53.881

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

68.097

76.499

83.881

 

 

 

 

Long-term borrowings

0.000

0.619

1.521

Short term borrowings

0.000

0.000

0.000

Total borrowings

0.000

0.619

1.521

Debt/Equity ratio

0.000

0.008

0.018

 

 

 

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)

Turnover

159.852

168.235

184.599

 

 

5.244

9.727

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Turnover

159.852

168.235

184.599

Profit

0.000

8.402

7.381

 

0.00%

4.99%

4.00%

 

 

 

 

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

Yes

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

Yes

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

 

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10288050

30/05/2012 *

10,000,000.00

3I INFOTECH TRUSTEESHIP SERVICES LIMITED

3RD TO 6TH FLOOR, INTERNATIONAL INFOTECH PARK, T 
OWER NO.5, VASHI RAILWAY STATION COMPLEX, VASHI,

NAVI MUMBAI-400703, MAHARASHTRA, INDIA

B41106808

 

 

FUTURE PROSPECTS:

 

The company has not accepted any fixed deposits from the Public.


FIXED ASSETS:

 

·         Factory Land

·         Factory Building

·         Ware House Building

·         Borewell

·         Plant and Machinery

·         Furniture and Fixture

·         Electrical Installation

·         Vehicle

·         Computer

·         Other Equipments

 

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. 63.95

UK Pound

1

Rs. 98.64

Euro

1

Rs. 69.86

 

 

INFORMATION DETAILS

 

Information Gathered by :

MAN

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

IND

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--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

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

 

48

 

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.