MIRA INFORM REPORT

 

 

Report No. :

350989

Report Date :

23.11.2015

 

IDENTIFICATION DETAILS

 

Name :

STG HEATING PRIVATE LIMITED

 

 

Registered Office :

Hiji Baug, T. J. Road, Behind Balmer Lawrie and Company, Opposite Sunder Tower, Sewri (West), Mumbai – 400015, Maharashtra

Tel. No.:

91-22-24184009

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

22.04.2009

 

 

Com. Reg. No.:

11-191920

 

 

Capital Investment / Paid-up Capital :

Rs.10.000 Million

 

 

CIN No.:

[Company Identification No.]

U29268MH2009PTC191920

 

 

IEC No.:

0309020069

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAMCS9894F 

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Trader and Exporter of Oil, Gas Fired Steam Boilers etc.

 

 

No. of Employees :

60 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company incorporated in the year 2009. It is the trader and exporter of Oil, gas fired steam boilers.

 

For the financial year ended 2014, the company has healthy scale of operations marked by decent top line growth along with profitability margin of 3.5%.

 

The company has comfortable capital structure, maintained adequate networth position along with favorable gap between trade payables and receivables.

 

Trade relations are fair. Business is active. Payments are usually correct.

 

 The company can be considered for business dealings at usual trade terms and conditions.

 

NOTES:

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

 

 

 

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 31-03-2015.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Naresh Darji

Designation :

Deputy General Manager

Contact No.:

91-22-24184009

Date :

20.11.2015

 

 

LOCATIONS

 

Registered Office :

Hiji Baug, T. J. Road, Behind Balmer Lawrie and Company, Opposite Sunder Tower, Sewri (West), Mumbai – 400015, Maharashtra, India

Tel. No.:

91-22-24184009

Fax No.:

91-22-24175858

E-Mail :

naresh@s-tgroup.com

indrajit@s-tgroup.com

Website :

http://www.s-tgroup.com 

 

 

Branch Office 1:

WZ-9, Harish Singh Park, New Multan Nagar, Opposite Metro Pillar No 295, New Delhi  - 110056, India

Tel. No.:

91-11-25291308/09

 

 

Branch Office 2:

3799, 6th Main Road, Hal 2nd stage, Indiranagar, Bangalore – 560038, Karnataka, India

Tel. No.:

91-80-25286030

 

 

DIRECTORS

 

AS ON 30.09.2014

 

Name :

Mr. Ajay Narrottam Tanna

Designation :

Managing Director

Address :

Mumbai Middle Class CHS, Gope Niwas, 32-275, Sion (East), Mumbai – 400022, Maharashtra, India

Date of Birth/Age :

01.05.1965

Date of Appointment :

22.04.2009

DIN No.:

01302100

 

 

Name :

Mr. Rohan Mahasukh Shah

Designation :

Director

Address :

18 Owner’s Court, 4th Floor, A-Road, Churchgate, Mumbai – 400020, Maharashtra, India

Date of Birth/Age :

31.12.1974

Date of Appointment :

22.04.2009

DIN No.:

01584634

 

 

Name :

Mr. Ashok Narottam Tanna

Designation :

Director

Address :

Mumbai Middle Class CHS, Gope Niwas, 32-275, Sion (East), Mumbai – 400022, Maharashtra, India

Date of Birth/Age :

10.05.1964

Date of Appointment :

22.04.2009

DIN No.:

01533484

 

 

Name :

Mr. Narayan Sagri Karanth

Designation :

Director

Address :

25F, Nivedita Enclave, Paschim Vihar, Delhi – 110163, India

Date of Appointment :

01.01.2012

DIN No.:

05173015

 

 

KEY EXECUTIVES

 

Name :

Mr. Naresh Darji

Designation :

Deputy General Manager

 

 

MAJOR SHAREHOLDERS

 

AS ON 30.09.2014

 

Names of Shareholders

 

No. of Shares

% of Holding

Ashok Narottam Shah

25000

25.00

Ajay Narottam Shah

25000

25.00

Rohan Mahasukh Shah

25000

25.00

Mr. M.P. Shah

25000

25.00

 

 

 

Total

100000

100.00

 

 

 

Equity Share Break up (Percentage of Total Equity)

 

AS ON 30.09.2014

 

Category

 

Percentage

Directors or relatives of Directors

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trader and Exporter of Oil, Gas Fired Steam Boilers etc.

 

 

Products :
  • Eco Flames
  • Heats
  • Solar Energy
  • Heating Equipments
  • Resin Pants 

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

 

Products :
  • Oil
  • Gas Fired Steam Boilers

Countries :
  • Singapore
  • Srilanka
  • South Africa
  • Uganda

 

 

Imports :

 

Products :
  • Oil
  • Gas Fired Steam Boilers

Countries :
  • Italy
  • UK
  • USA

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

PRODUCTION STATUS – NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Company Name :

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 :

Company Name :

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 :

60 (Approximately)

 

 

Bankers :

Banker Name :

State Bank of India

Branch :

Nariman Point Branch, Dalamal House, Jamnalal Bajaj Marg, Nariman Point, Mumbai - 400021, Maharashtra, Indi

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 :

Not Divulged

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

Not Divulged

Account Operation :

Not Divulged

Remark :

Not Divulged

 

·         The Saraswat Co-operative Bank Limited, Rasec Dadar Branch, Laxman Zulla, 1st Floor, 50, Ranade Road, Dadar, Mumbai - 400028, Maharashtra, India

 

 

Facilities :

SECURED LOANS

31.03.2014

Rs. In Million

31.03.2013

Rs. In Million

Long Term Borrowings

 

 

Saraswat Bank Car Loan # 1

0.231

0.400

Less: Current Maturities

0.180

0.167

(i)

0.051

0.233

 

 

 

Saraswat Bank Car Loan # 2

0.231

0.400

Less: Current Maturities

0.180

0.167

(ii)

0.051

0.233

 

 

 

Saraswat Bank Car Loan # 3

0.439

0.636

Less: Current Maturities

0.198

0.197

(iii)

0.241

0.439

 

 

 

Total (i+ii+iii) (A)

0.343

0.905

 

 

 

Short Term Borrowings

 

 

Overdrawn bank balance

17.240

0.125

Total (B)

17.240

0.125

 

 

 

TOTAL (A+B)

17.583

1.030

 

NOTES:

 

LONG TERM BORROWINGS

 

a)     Saraswat Bank Car Loan # 1

 

Loan amounting to Rs.0.231 Million (31st March 2013 Rs.0.400 Million) is secured by a specific and exclusive charge on company’s Motor car repayable in 36 monthly installments commencing from June’12 last installment due on June’15, Rate of Interest 10.50%

 

b)    Saraswat Bank Car Loan # 2

 

Loan amounting to Rs.0.231 Million (31st March 2013 Rs.0.400 Million) is secured by a specific and exclusive charges on Company’s Motor Car Repayable in 36 monthly installments commencing from June’12 Last installment due on June’15. Rate of interest 10.50%

 

c)     Saraswat Bank Car Loan # 3

 

Loan amounting to Rs.0.439 Million (31st March 2013 Rs.0.636 Million) is secured by a specific and exclusive charges on Company’s Motor Car Repayable in 36 monthly installments commencing from March’13 Last installment due on Feb’16 Rate of interest 10.40%

 

SHORT TERM BORROWINGS

 

Secured against book debts, stock and innovative assets of group companies.

 

 

Auditors :

 

Name :

C M Gabhawala and Company

Chartered Accountants

Address :

42,Nanik Nivas, 30, Dr. D D Sathe Marg, Girgaum, Mumbai – 400006, Maharashtra, India

Tel. No.:

91-22-23880101/23823923

Fax No.:

91-22-23850931

E-Mail :

cmgco@hathway.com

PAN No.:

AAAFC1255D

 

 

Memberships :

Not Divulged

 

 

Collaborators :

Not Divulged

 

 

Associated Company :

·         STG Infrastructure Private Limited

·         STG Refractory Private Limited

·         Linnhoff India Private Limited

 

 

Association in which KMP / Relatives of KMP can exercise significant influence :

·         Taurus Heat Systems

·         Motabhiy Gulabdas and Company

·         M P Shah (HUF)

·         A J Corporation

 

 

CAPITAL STRUCTURE

 

AS ON 30.09.2014

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

1000000

Equity Shares

Rs.10/- each

Rs.10.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

1000000

Equity Shares

Rs.10/- each

Rs.10.000 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

10.000

10.000

1.000

(b) Reserves & Surplus

29.272

21.890

18.905

(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)

39.272

31.890

19.905

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

17.717

21.937

9.548

(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

0.444

0.491

0.286

Total Non-current Liabilities (3)

18.161

22.428

9.834

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

17.240

0.125

0.000

(b) Trade payables

29.750

27.669

37.313

(c) Other current liabilities

19.346

18.559

15.868

(d) Short-term provisions

2.000

2.474

11.404

Total Current Liabilities (4)

68.336

48.827

64.585

 

 

 

 

TOTAL

125.769

103.145

94.324

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2.568

2.881

0.887

(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

0.025

0.025

0.025

(c) Deferred tax assets (net)

0.144

0.095

0.028

(d)  Long-term Loan and Advances

17.125

13.126

7.604

(e) Other Non-current assets

0.000

0.007

0.015

Total Non-Current Assets

19.862

16.134

8.559

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

43.149

39.050

38.530

(c) Trade receivables

51.835

39.922

32.833

(d) Cash and cash equivalents

5.328

3.839

8.501

(e) Short-term loans and advances

5.440

4.193

5.893

(f) Other current assets

0.155

0.007

0.008

Total Current Assets

105.907

87.011

85.765

 

 

 

 

TOTAL

125.769

103.145

94.324

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

 

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from Operation

206.687

198.388

195.501

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                    

NA

NA

NA

 

 

 

 

 

 

EXPENSES

NA

NA

NA

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

12.369

19.321

8.682

 

 

 

 

 

 

DEPRECIATION/ AMORTISATION                    

0.836

0.598

0.286

 

 

 

 

 

 

PROFIT BEFORE TAX

11.533

18.723

8.396

 

 

 

 

 

 

TAX                                                                 

4.249

6.738

2.328

 

 

 

 

 

 

PROFIT AFTER TAX

7.382

11.985

6.068

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Commission Received and Export

7.627

14.097

3.203

 

TOTAL EARNINGS

7.627

14.097

3.203

 

 

 

 

 

 

Earnings Per Share (Rs.)

7.38

11.99

60.68

 

 

Particulars

 

 

 

31.03.2015

Sales Turnover (Approximately)

 

 

210.000

 

Expected Sales (2015-2016): Rs.240.000 million

 

The above information has been parted by Mr. Naresh

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

0.558

0.531

0.000

Cash generated from operations

NA

NA

NA

Net cash flow from (used in) operations

NA

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

PAT / Sales

(%)

3.57

6.04

3.10

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets)

(%)

9.18

18.17

8.91

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.29

0.59

0.42

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.90

0.71

0.48

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.55

1.78

1.33

 

 

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

1.000

10.000

10.000

Reserves & Surplus

18.905

21.890

29.272

Share Application money pending allotment

0.000

0.000

0.000

Net worth

19.905

31.890

39.272

 

 

 

 

long-term borrowings

9.548

21.937

17.717

Short term borrowings

0.000

0.125

17.240

Current Maturities of Long term debt

0.000

0.531

0.558

Total borrowings

9.548

22.593

35.515

Debt/Equity ratio

0.480

0.708

0.904

 

 

 

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

195.501

198.388

206.687

 

 

1.477

4.183

 

 

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

195.501

198.388

206.687

Profit

6.068

11.985

7.382

 

3.10%

6.04%

3.57%

 

 

 

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

No

19

Major customers

No

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

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

 

 

UNSECURED LOANS:

 

Particulars

31.03.2014

Rs. In Million

31.03.2013

Rs. In Million

Long Term Borrowings

 

 

Loans and advances from related parties

17.374

21.032

 

 

 

Total

17.374

21.032

 

 

INDEX OF CHARGE:

 

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10544973

12/01/2015

20,700,000.00

Axis Bank Limited

8th Fllor, Harbhajan Bldg, CST Road, Kalina, Santacruz East, Mumbai, Maharashtra - 400098, India

C41396318

2

10544976

12/01/2015

20,700,000.00

Axis Bank Limited

8th Floor, Harbhajan Bldg, CST Road, Kalina, Santacruz East, Mumbai, Maharashtra - 400098, India

C41398140

3

10445724

03/07/2014 *

52,300,000.00

State Bank of India

Nariman Point Branch, Dalamal House, Jamnalal Bajaj Marg, Nariman Point, Mumbai, Maharashtra - 400021, India

C17177940

4

10412020

08/02/2013

648,000.00

The Saraswat Co-Operative Bank Limited

Rasec Dadar Branch, Laxman Zulla, 1st Floor, 50, Ranade Road, Dadar,, Mumbai, Maharashtra - 400028, India

B70511563

5

10363048

25/06/2012

513,000.00

The Saraswat Co-Operative Bank Limited

Rasec Dadar Branch, Laxman Zulla, 1 St Floor, 50,
Ranade Road, Dadar, Mumbai, Maharashtra -400028, India

B42646554

6

10363052

25/06/2012

514,000.00

The Saraswat Co-Operative Bank Limited

Rasec Dadar Branch, Laxman Zulla, 1 St Floor, 50,
Ranade Road, Dadar, Mumbai, Maharashtra - 400028, India

B42648063

 

*Date of modification Charges

 

 

FIXED ASSETS:

 

·         Land

·         Building

·         Plant and Machinery

·         Furniture and Fixture

·         Office Equipment

·         Computer

·         Vehicles

 

 

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.66.09

UK Pound

1

Rs.101.04

Euro

1

Rs.70.86

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

TRI

 

 

Report Prepared by :

NKT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILITY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

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

 

45

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NB

NEW BUSINESS

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.