MIRA INFORM REPORT

 

 

Report No. :

346448

Report Date :

20.10.2015

 

IDENTIFICATION DETAILS

 

Name :

ARTHNARI LOOM CENTRE TEXTILE PRIVATE LIMITED

 

 

Registered Office :

78, Sababathi Street, Kalarampatty, Erumapalayam, PO 636015, Salem - 636015, Tamilnadu

Tel. No.:

91-427-2469951

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

25.10.1991

 

 

Com. Reg. No.:

18-003485

 

 

Capital Investment / Paid-up Capital :

Rs. 237.617 Million

 

 

CIN No.:

[Company Identification No.]

U18101TZ1991PTC003485

 

 

IEC No.:

3296002111

 

 

TIN No.:

33662681051

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEA08429B

 

 

PAN No.:

[Permanent Account No.]

AABCA6496L

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of Yarn Dyed Woven Fabrics.

 

 

No. of Employees :

1300 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

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 was incorporated in the year 1991 and it is a manufacturer, exporter and importer of yarn dyed woven fabrics.

 

Rating takes into consideration company’s established track record of business operations supported by extensive industry experience of promoters in textile business and above average operating efficient of the company.

 

Rating also takes into consideration its above average financial profile along with modest net worth position and sound debt coverage indicators.

 

However, rating strengths is partially offset by the company’s large working capital requirements leading to high reliance on external debt.

 

Trade relations are reported to be usually correct.

 

In view of aforesaid, 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

 

Rating Agency Name

CRISIL

Rating

Long Term Rating : BB+

Rating Explanation

Inadequate credit quality and high credit risk.

Date

June 30, 2014

 

 

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. Shivkumar

Designation :

Finance Manager

Contact No.:

91-427-2469951

 

 

LOCATIONS

 

Registered Office :

78, Sababathi Street, Kalarampatty, Erumapalayam, PO 636015, Salem - 636015, Tamilnadu, India

Tel. No.:

91-,427-2469951

Fax No.:

91-427-2465896

E-Mail :

accounts@alctex.com

Website :

http://www.alctex.com

Area :

4000 sq. ft.

Location :

Owned

 

 

Factory 1 :

5/1247, Erumapalayam Main Road, Erumapalayam Post, Salem – 636015, Tamilnadu, India

Tel. No.:

91-427-6542001

Fax No.:

91-427-2263435

 

 

Factory 2 :

4/52, Panagadu Road, Erumapalayam, Po Salem – 636015, Tamilnadu, India

Tel. No.:

91-427-6532670

 

 

DIRECTORS

 

AS ON 29.09.2014

 

Name :

Mr. Arthanari Alagarasan

Designation :

Managing Director

Address :

80-B, Sabapathi Kadu, Kalarampatti, Erumapalayam, Salem - 636015, Tamilnadu, India

Date of Birth/Age :

15.06.1958

Date of Appointment :

25.10.1991

Voter ID No. :

GMV2684272

DIN No.:

00003568

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

Date of cessation

Company/ LLP Status

Defaulting status

1

U18101TZ1991PTC003485

ARTHANARI LOOM CENTRE TEXTILE PRIVATE LIMITED

Managing director

25-10-1991

25-10-1991

-

Active

NO

2

U17111TZ2010PTC016112

ALAGARASAN SPINNING AND WEAVING MILLS PRIVATE LIMITED

Director

04-06-2010

04-06-2010

-

Active

NO

3

U74900TZ2010PTC016428

SALEM YARN COLORING PARK PRIVATE LIMITED

Director

07-10-2010

07-10-2010

-

Active

NO

4

U51311TZ2003PTC014963

ARTHANARI CLOTHING PRIVATE LIMITED

Director

11-03-2013

11-03-2013

18-12-2013

Active

NO

 

 

Name :

Mr. Alagarasan Pushpa

Designation :

Managing Director

Address :

80-B, Sabapathi Kadu, Kalarampatti, Erumapalayam, Salem - 636015, Tamilnadu, India

Date of Birth/Age :

22.07.1967

Date of Appointment :

01.04.2009

Voter ID No. :

GMV 2684264

DIN No.:

00003573

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

Date of cessation

Company/ LLP Status

Defaulting status

1

U18101TZ1991PTC003485

ARTHANARI LOOM CENTRE TEXTILE PRIVATE LIMITED

Managing director

01-04-2009

25-10-1991

-

Active

NO

2

U17111TZ2010PTC016112

ALAGARASAN SPINNING & WEAVING MILLS PRIVATE LIMITED

Director

04-06-2010

04-06-2010

-

Active

NO

3

U51311TZ2003PTC014963

ARTHANARI CLOTHING PRIVATE LIMITED

Additional director

10-04-2013

10-04-2013

18-12-2013

Active

NO

 

 

Name :

Mr. Alagarasan Aadhithya

Designation :

Managing Director

Address :

80-B, Sabapathi Kadu, Salem – 636015, Tamilnadu, India

Date of Birth/Age :

02.12.1992

Qualification :

B.Com

Date of Appointment :

04.10.2013

DIN No.:

06640299

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

U18101TZ1991PTC003485

ARTHANARI LOOM CENTRE TEXTILE PRIVATE LIMITED

Managing director

04-10-2013

19-07-2013

Active

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. Shivkumar

Designation :

Finance Manager

 

 

MAJOR SHAREHOLDERS

 

AS ON 29.09.2014

 

Names of Shareholders

 

No. of Shares

M. Arthanari (HUF)

 

10

A. Alagarasan

 

1053160

A. Pushpa

 

569940

M Arthanari

 

700

R. Panneerselvam

 

200

A. Adhithya

 

686080

A. Aswathasree

 

66075

 

 

 

Total

 

2376165

 

AS ON 29.09.2014

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Directors or relatives of Directors

100.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Yarn Dyed Woven Fabrics.

 

 

Products :

Yarn Dyed Woven Fabrics.

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :

Finished Goods

Countries :
  • Bangladesh
  • Srilanka

 

 

Imports :

 

Products :

Machinery

Countries :
  • US
  • Germany

 

 

Terms :

 

Selling :

Credit

 

 

Purchasing :

Credit

 

 

GENERAL INFORMATION

 

Suppliers :

Not Divulged

Reference :

Crown Wears Private Limited – Bangladesh

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 :

Not Divulged

Reference :

Shashi Exports Private Limited – Bangladesh

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

1300 (Approximately)

 

 

Bankers :

Banker Name

State Bank of India

Branch Address

Commercial Branch, Chinnayyan Towers, 120/2 and 120/3 Cherry Road, Salem - 636007, Tamilnadu, 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

·         Anz Grindlays Bank Plc, No.1 Haddows Road, Chennai - 600008, Tamilnadu, India

·         Syndicate Bank, Salem Gugai Branch, 37, Whites Road, Chennai - 600014, Tamilnadu, India

 

  • State Bank of India, Siruthozhil Branch, 68, Cherry Road, Salem – 636007, Tamilnadu, India

 

 

Facilities :

(Rs. In Million)

SECURED LOANS

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

LONG TERM BORROWINGS

 

 

Rupee term loan from banks

280.904

229.928

 

 

 

SHORT TERM BORROWINGS

 

 

Working capital loans from banks

437.618

427.073

 

 

 

Total

718.522

657.001

 

Financial institutions :

Lakshmi General Fincnce Limited, 8-H., Omalur Road, Salem - 636009, Tamilnadu, India

 

 

Auditors :

 

Name :

JSCV and Company

Chartered Accountants

Address :

25, LIC Colony, Omalur Main Road, Salem – 636004, Tamilnadu, India

PAN No.:

AJCPS1203Q

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :

·         A. P. Textiles

·         Pushpam Textiles

·         Aadithya Textiles

 

 

 

 

CAPITAL STRUCTURE

 

AS ON 29.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

3000000

Equity Shares

Rs. 10/- each

Rs. 300.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

2376165

Equity Shares

Rs. 10/- each

Rs. 237.617 Million

 

 

 

 

 

AFTER 29.09.2014

 

Authorised Capital: Rs. 300.000 Million

 

Issued, Subscribed & Paid-up Capital: Rs. 280.017 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

237.617

179.980

169.780

(b) Reserves & Surplus

212.389

169.067

127.065

(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)

450.006

349.047

296.845

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

399.573

342.137

357.566

(b) Deferred tax liabilities (Net)

36.678

42.618

36.644

(c) Other long term liabilities

9.669

0.000

0.000

(d) long-term provisions

13.214

17.428

11.701

Total Non-current Liabilities (3)

459.134

402.183

405.911

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

437.618

427.073

412.415

(b) Trade payables

77.849

170.299

129.543

(c) Other current liabilities

113.990

97.941

79.535

(d) Short-term provisions

21.700

22.640

18.000

Total Current Liabilities (4)

651.157

717.953

639.493

 

 

 

 

TOTAL

1560.297

1469.183

1342.249

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

708.335

629.819

581.966

(ii) Intangible Assets

1.978

2.887

3.795

(iii) Capital work-in-progress

29.254

1.892

65.962

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

104.411

291.006

268.389

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

71.033

40.031

28.244

Total Non-Current Assets

915.011

965.635

948.356

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

310.965

206.181

158.265

(c) Trade receivables

243.734

240.760

174.858

(d) Cash and cash equivalents

20.897

11.130

24.182

(e) Short-term loans and advances

48.655

20.024

22.048

(f) Other current assets

21.035

25.453

14.540

Total Current Assets

645.286

503.548

393.893

 

 

 

 

TOTAL

1560.297

1469.183

1342.249

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

TOTAL                                     (A)

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

NA

NA

NA

 

 

 

 

 

 

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

234.729

225.658

195.688

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

86.721

76.274

72.920

 

 

 

 

 

 

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

148.008

149.384

122.768

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

88.705

78.511

66.692

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)                (G)           

59.303

70.873

56.076

 

 

 

 

 

Less

TAX                                                                  (H)

21.712

28.871

25.905

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX (G-H)                  (I)

37.591

42.002

30.171

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

147.941

105.939

75.768

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

185.532

147.941

105.939

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

310.921

469.776

216.995

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

15.82

17.68

12.70

 

 

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 flow from (used in) operation

NA

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

 

31.03.2013

31.03.2012

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.16

6.03

5.56

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.13

0.20

0.19

 

 

 

 

 

Debt Equity Ratio

(Total Debts/Networth)

 

1.86

2.20

2.59

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.99

0.70

0.62

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

169.780

179.980

237.617

Reserves & Surplus

127.065

169.067

212.389

Net worth

296.845

349.047

450.006

 

 

 

 

long-term borrowings

357.566

342.137

399.573

Short term borrowings

412.415

427.073

437.618

Total borrowings

769.981

769.210

837.191

Debt/Equity ratio

2.594

2.204

1.860

 

 

 

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

Yes

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

Yes

19

Major customers

Yes

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

----

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

----

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

----

33

Market information

----

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10002651

27/09/2013 *

831,300,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, CHINNAYYAN TOWERS, 120/2 & 120/3 CHERRY ROAD, SALEM,

Tamil Nadu - 636007,

INDIA

B86850930

 

* Date of charge modification

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

LONG TERM BORROWINGS

 

 

Deposits

0.000

0.058

Loans and advances from related parties

116.906

112.052

Other loans and advances

1.763

0.099

 

 

 

Total

118.669

112.209

 

FIXED ASSETS

 

 

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. 64.82

UK Pound

1

Rs. 100.12

Euro

1

Rs. 73.75

 

 

INFORMATION DETAILS

 

Information Gathered by :

SPR

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

JYO

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

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

4

--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

NO

--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

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NB

                                       New Business

 

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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.