MIRA INFORM REPORT

 

 

Report No. :

344637

Report Date :

14.10.2015

 

IDENTIFICATION DETAILS

 

Name :

FLOWSERVE INDIA CONTROLS PRIVATE LIMITED (w.e.f. 12.01.1998)

 

 

Formerly Known As :

VALTAK INTERNATIONAL PRIVATE LIMITED

 

 

Registered Office :

Plot No.4, 1-A, Road No.8, Export Promotion Industrial Park Whitefield Bangalore – 560066, Karnataka

Tel. No.:

91-80-40146200

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

13.11.1996

 

 

Com. Reg. No.:

08-021388

 

 

Capital Investment / Paid-up Capital :

Rs. 173.639 Million

 

 

CIN No.:

[Company Identification No.]

U85110KA1996PTC021388

 

 

IEC No.:

0703005308

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACF3286G

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in manufacture of Valves, Pumps, Pump parts, Valve parts and Actuators and also engaged in the designing services (Engineering) of Valves, Pumps and Seals.

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (57)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a wholly owned subsidiary of foreign company (Flowserve International Inc, USA) incorporated in the year 1996.

 

For the FY2014, the company has achieved decent revenue marked by good profitability margin of 15.05%.

 

The company possesses healthy financial risk profile marked by debt free capital structure, adequate cash accruals and there is favorable gap between trade payables and receivables.

 

Trade relations are fair. Business is active. Payments are regular and as per commitment.

 

In view of strong holding of promoters, 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.

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

 

INFORMATION DENIED BY

 

Name :

Mr. Shivraman

Designation :

Accounts Department

Contact No.:

91-80-33247903

Date :

14.10.2015

 

 

LOCATIONS

 

Registered Office :

Plot No.4, 1-A, Road No.8, Export Promotion Industrial Park Whitefield Bangalore – 560066, Karnataka, India

Tel. No.:

91-80-40146200

Fax No.:

91-80-28410286

E-Mail :

financeindia@flowserve.com

Website :

http://www.flowserve.com

 

 

Head Office :

“The Oval”, III Floor, New No.10-12, Venkatnarayana Road, T. Nagar, Chennai – 600017, Tamilnadu, India

Tel No.:

91-44-24324800/ 24504100

Fax No.:

91-44-24328754

 

 

Corporate  Office :

Plot No.31-C, 2nd Cross, Veerasandra Industrial Estate, Hosur Road, Bangalore – 560100, Karnataka, India

Tel. No.:

91-80-33247903

 

 

Factory :

S. F. Nos.136/3 and 137, Myleripalayam Road, Coimbatore – 641032, Tamilnadu, India

Tel. No.:

91-422-2612117/ 2612001

Fax No.:

91-422-2612002

 

 

DIRECTORS

 

As on 31.03.2015

 

Name :

Mr. Palghat Subramanian Sivaramakrishnan

Designation :

Director

Address :

Block 22, 04-04, Melville Park, Simeri Street 1, Singapore – 529945

Date of Birth/Age :

15.06.1958

Date of Appointment :

31.03.2006

DIN No.:

00194097

 

 

Name :

Mr. Ajit Frances Devotta

Designation :

Director

Address :

No. 19, Tanjore Road, T. Nagar, Chennai – 600017, Tamilnadu, India

Date of Birth/Age :

04.02.1960

Qualification :

BE Mechanical, MS Industrial Engineering, MBA in Finance

Experience :

28 years

Date of Appointment :

23.03.2009

DIN No.:

00349560

 

 

Name :

Mr. Asokan Venugopalan

Designation :

Whole Time Director

Address :

No.67/12, K g Layout Bharathi Park, 8th Cross Road, Coimbatore – 641011, Tamilnadu, India

Date of Birth/Age :

04.06.1964

Qualification :

BE – Mechanical

Experience :

24 years

Date of Appointment :

20.09.2011

DIN No.:

03629587

 

 

Name :

Malcolm Harold Platt

Designation :

Additional Director

Address :

2004 Montecito Trl, Southlake, Texas, 760092, United States of America

Date of Appointment :

12.01.2015

DIN No.:

07049876

 

 

Name :

Julie Ann Peffer

Designation :

Additional Director

Address :

1301 Noble Way, Flower Mound, Texas, 75022, , United States of America

Date of Appointment :

12.01.2015

DIN No.:

06956068

 

 

KEY EXECUTIVES

 

Name :

S. Sriram

Designation :

Company Secretary

Address :

EC-1, Magan Samara Mews, 159/3, 3rd Main, J.P, Nagar, 7th Phase, Panduranga Nagar, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

02.09.1970

Date of Appointment :

26.06.2012

PAN No.:

ACSPS2469R

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Names of Shareholders

 

No. of Shares

Flowserve International Inc., USA

 

17363939

Sriram Santhanam as Nominee to Flowserve International Inc., USA

 

1

Total

 

17363940

 

Equity Share Break up (Percentage of Total Equity)

 

As on 30.09.2014

 

Category

Percentage

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

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in manufacture of Valves, Pumps, Pump parts, Valve parts and Actuators and also engaged in the designing services (Engineering) of Valves, Pumps and Seals.

 

 

Products/ Services :

Item Code No.

Product/ Services Description

85167990

Flowserve Engineering

Services

85167990

Heavy Duty

Actuator

85167990

Limitorque

85167990

Pumps

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour

Market Goodwill

Overall

Not Divulged

Not Divulged

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality

Delivery Behaviour

Overall

Not Divulged

Not Divulged

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Not Divulged

 

 

Bankers :

Bank Name

Not Divulged

Branch

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

Auditors :

 

Name :

Lovelock and Lewes

Chartered Accountants

Address :

Flat No 102, Gopalan Royal Palm Apts, 3rd Main, Lalbahadur Sastri Nagar, Bangalore, Karnataka, India 

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

AABFL5878L

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding company:
  • Flowserve International Inc. USA

 

 

Ultimate holding company :
  • Flowserve Corporation, USA

 

 

Fellow subsidiaries:
  • Flowerve Canada Corporation
  • Flowserve - Al Rushaid Company Limited
  • Flowserve (Austria) Gmbh
  • Flowserve (Thailand) Limited
  • Flowserve / Abahsain Flow Control Company  Limited
  • Flowserve Ahaus Gmbh
  • Flowserve Australia Pty. Ltd.
  • Flowserve B.V.
  • Flowserve Control Valves Gmbh
  • Flowserve Essen Gmbh
  • Flowserve Flow Control Gmbh
  • Flowserve Fluid Motion and Control (Suzhou) Company  Limited
  • Flowserve France S.A.S.
  • Flowserve GB Limited
  • Flowserve Gulf FZE
  • Flowserve Hamburg Gmbh
  • Flowserve International Limited U.K
  • Flowserve Japan Company  Limited
  • Flowserve Ksm Company Limited
  • Flowserve Limitorque
  • Flowserve Limitorque Fluid Power Systems- Lfps
  • Flowserve Ltda.-Brazil
  • Flowserve Management Company
  • Flowserve Netherlands Management B.V.
  • Flowserve Pompes Sas
  • Flowserve Portuguesa
  • Flowserve Pte. Ltd.
  • Flowserve S. De R.L. De C.V.
  • Flowserve S.A.-Spain
  • Flowserve S.R.L.
  • Flowserve Sanmar Limited
  • Flowserve Shanghai Limited
  • Flowserve South Africa (Proprietary) Limited
  • Flowserve Spain S.L.
  • Flowserve Sweden Ab
  • Flowserve US Inc.
  • Gestra Ag
  • Lawrence Pumps Asia Pte. Limited
  • Palmstierna International Ab
  • Thompsons, Kelly and Lewis Pty. Limited
  • Valbart S.R.L.
  • Worthington S.R.L.
  • Flowserve Micro finish - Hubli

 

 

CAPITAL STRUCTURE

 

As on 30.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

18,750,000

Equity Shares

Rs.10/- each

Rs. 187.500 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

17,363,940

Equity Shares

Rs.10/- each

Rs. 173.639 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

173.639

173.639

173.639

(b) Reserves & Surplus

4991.141

3601.574

2389.326

(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)

5164.780

3775.213

2562.965

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

81.087

68.761

31.642

(d) long-term provisions

106.266

136.786

37.212

Total Non-current Liabilities (3)

187.353

205.547

68.854

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

19.726

0.000

(b) Trade payables

1712.487

1495.468

2029.476

(c) Other current liabilities

1279.267

1331.536

767.713

(d) Short-term provisions

165.746

163.714

143.412

Total Current Liabilities (4)

3157.500

3010.444

2940.601

 

 

 

 

TOTAL

8509.633

6991.204

5572.420

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1865.492

1148.293

734.448

(ii) Intangible Assets

22.553

13.183

8.871

(iii) Capital work-in-progress

208.496

531.872

33.248

(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)

175.554

121.811

57.429

(d)  Long-term Loan and Advances

500.592

371.117

347.700

(e) Other Non-current assets

103.642

0.391

0.278

Total Non-Current Assets

2876.329

2186.667

1181.974

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1849.795

1748.131

1771.478

(c) Trade receivables

2293.182

2511.492

2170.872

(d) Cash and cash equivalents

1011.773

171.155

253.751

(e) Short-term loans and advances

449.759

361.904

194.318

(f) Other current assets

28.795

11.855

0.027

Total Current Assets

5633.304

4804.537

4390.446

 

 

 

 

TOTAL

8509.633

6991.204

5572.420

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

 

 

 

Other Income

 

 

 

 

 

TOTAL                                     (A)

10630.200

8829.200

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

8021.700

6912.300

NA

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

2608.500

1916.900

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

3.300

0.050

 

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

2605.200

1916.850

NA

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

165.400

122.700

 

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

2439.800

1794.150

 

 

 

 

 

 

Less

TAX                                                                  (H)

838.900

581.900

 

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1600.900

1212.250

732.720

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

3392.700

2180.500

NA

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

4993.600

3392.750

2180.500

 

 

 

 

 

 

Earnings Per Share (Rs.)

92.19

69.81

42.1

 

 

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

Net cash flows from (used in) operation

2482.067

1500.636

307.207

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

15.06

13.73

NA

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

24.54

21.71

NA

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

30.03

28.31

NA

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.47

0.48

NA

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.00

0.01

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.78

1.60

1.49

 

 

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

173.639

173.639

173.639

Reserves & Surplus

2389.326

3601.574

4991.141

Net worth

2562.965

3775.213

5164.780

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

0.000

19.726

0.000

Total borrowings

0.000

19.726

0.000

Debt/Equity ratio

0.000

0.005

0.000

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

Total Income

8829.200

10630.200

 

20.398

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

Total Income

8829.200

10630.200

Profit/ (Loss)

1212.250

1600.900

 

13.73%

15.06%

 

 

 

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)

No

16]

No. of employees

No

17]

Details of sister concerns

Yes

18]

Major suppliers

No

19]

Major customers

No

20]

Banking Details

No

21]

Banking facility details

No

22]

Conduct of the banking account

--

23]

Financials, if provided

Yes

24]

Capital in the business

Yes

25]

Last accounts filed at ROC, if applicable

Yes

26]

Turnover of firm for last two 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

No

35]

Negative Reporting by Auditors in the Annual Report

No

 

 

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

Loans repayable on demand

(Working Capital loans repayble on demand from bank)

0.000

19.726

Total

0.000

19.726

 

 

INDEX OF CHARGES NO CHARGES EXIST FOR COMPANY 

 

 

BUSINESS PERFORMANCE

 

Valves Division

 

The Control Valves Division performance is satisfactory with a Sales and other Income of Rs.4033.711 Million for the year ending 31st March 2014. This has resulted in the growth of 27% over the previous year. More focus was ensured on the Third party sales and Indian market is continued to a larger extent. The Valves Division performance is satisfactory with Sales and other income Audco of Rs.1 524.258 Million for the year ending 31st March 2014.

 

Pumps Division

 

The Pump Division performance is satisfactory with a Sales and other Income of Rs 3714.385 Million for the year ending 31st March 2014. This has resulted in the growth of 9% under the last financial year. The under performance is mainly due to negative exchange fluctuation as well as under completion of expansion of Block-III factory. The Domestic markets for the Pumps and expansion in export markets for different Pumps are also expected in the coming years. The capacity increase through Block III facility construction has started after obtaining necessary approvals and we are expecting the same to come from 2014.

 

Engineering Centers

 

There are three engineering centers catering to the need of various Flowserve units worldwide. The Seals Engineering Center located at Chennai, Pumps Engineering Center located in Bangalore and the Valves Engineering Center located at the Valves manufacturing unit are serving on the Design, Engineering services etc to the whole of Flowserve units across the globe. The revenues recorded were Rs. 661.454 Million for the financial year 2013-14.

 

Chemical Sector

 

The FCD Chemical division performance is satisfactory with sales and other Income of Rs. 626.797 Million for the

year ending 31 st March 2014.This has resulted in the underperformance of 18% compare to the last financial year due to drop in the orders from intercompany.

 

 

FIXED ASSETS

 

·         Freehold Land

·         Building

·         Plant and Machinery

·         Office Equipment

·         Furniture and Fixture

·         Computer and Computer Software

 

 

 

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.65.02

UK Pound

1

Rs.99.88

Euro

1

Rs.73.91

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

AMR

 

 

Report Prepared by :

JYTK

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILITY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

---

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

57

 

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.