MIRA INFORM REPORT

 

 

Report No. :

338638

Report Date :

01.09.2015

 

IDENTIFICATION DETAILS

 

Name :

TENNECO AUTOMOTIVE INDIA PRIVATE LIMITED

 

 

Registered Office :

122, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu

Tel. No.:

91-4344-305500

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

12.01.1998

 

 

Com. Reg. No.:

18-015231

 

 

Capital Investment / Paid-up Capital :

Rs.1828.436 Million

 

 

CIN No.:

[Company Identification No.]

U34300TZ1998PTC015231

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacture, distribute and/or otherwise deal in automobile parts and components and other related activities including establishment of a comprehensive Research and Development Centre.

 

 

No. of Employees :

Information declined by the management 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (14)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of Tenneco Inc. USA and it is having a moderate track record.

 

The company has reported weak operational and financial risk profile. Their appears huge external borrowings reported by the company, further the company have also reported heavy accumulated losses, due which company net worth has fully eroded.

 

However, company gets a good support from its holdings company. Business is active. Payments are slow.

 

The company can be considered for business dealings on a safe and secured 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

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 31-03-2013.

 

INFORMATION DECLINED

 

MANAGEMENT NON CO-OPERATIVE (91-4344-305500)

 

LOCATIONS

 

Registered Office :

122, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu, India

Tel. No.:

91-4344-277395 / 409103

Fax No.:

91-4344-400150 / 409103

E-Mail :

SN1@tenneco.com  

Website :

www.tenneco.com

Area :

2000sq.fts

Location :

Owned

 

 

Factory  :

No.122, Gat No 1396/1397, At Post Sanaswadi, Pune – 412208, Maharashtra, India

Tel. No.:

91-2137-308800

Location :

Owned

 

 

DIRECTORS

 

AS ON 30.09.2014

 

Name :

Mr. Gangasagar Neminath Hemade

Designation :

Managing director

Address :

Building IV-304,S.No.64,Gera's Greensville-II, Sky Villas, Villa No-IV-304,B-4,Third Floor, Kharadi, Pune - 411014, Maharashtra, India

Date of Birth/Age :

31.08.1971

Date of Appointment :

09.05.2011

DIN No.:

03409175

PAN No.:

AAXPH3079F

 

 

Name :

Mr. Abhijit Mukherjee

Designation :

Director

Address :

Eenmeilaan 205/403, 3010 Leuven, Leuven, NA,, Belgium

Date of Birth/Age :

14.01.1958

Date of Appointment :

29.11.2008

DIN No.:

02428684

PAN No.:

BAGPM8818P

 

 

Name :

Mr. Pankaj Kapoor

Designation :

Director

Address :

Tower No.18, Flat No. 1003, Orchid Petals, Sohna Road, Sector - 49, Gurgaon - 122002, Haryana, India

Date of Appointment :

01.07.2014

DIN No.:

06850777

 

 

Name :

Mr. Rchidambaram Subramaniam

Designation :

Director

Address :

Flat No 501,Tulips Building B - 1,Gulmohar City, SR No 5/2/1,Kharadi, Pune, 411014, Maharashtra, India

Date of Birth/Age :

24.09.1976

Date of Appointment :

17.03.2014

DIN No.:

06844540

 

 

KEY EXECUTIVES

 

Name :

Mr. Srinivasan Narasimhan

Designation :

Secretary

Address :

Flat C3 Silver Park Apartment 36, Thanikachalam Road T. Nagar, Chennai - 600017, Tamilnadu, Indi

Date of Birth/Age :

04.04.1965

Date of Appointment :

27.02.2015

PAN No:

ADGPN4821P

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2014

 

Names of Shareholders

 

No. of Shares

Tenneco Mauritius Limited , Mauritius

 

17115307

Tenneco Mauritius Holding Company, Mauritius

 

165728256

Tenneco Global Holdings Inc., USA

 

21

Total

 

182843584

 

AS ON 30.11.2014

 

Names of Allotteess

 

No. of Shares

Tenneco Mauritius Holding Company, Mauritius

 

54980000

Total

 

54980000

 

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 :

Manufacture, distribute and/or otherwise deal in automobile parts and components and other related activities including establishment of a comprehensive Research and Development Centre.

 

 

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 :

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 :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Information declined by the management 

 

 

Bankers :

Banker Name

Not Divulged

Branch Address

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 Accountant

Address :

5Th Floor Tower D The Millenia 1 and 2 Murphy Road, Ulsoor, Bangalore, India

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

AAEFP3641G

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Ultimate Holding

company:
  • Tenneco Inc, United States

 

 

Holding company:
  • Tenneco Mauritius Holdings Limited, Mauritius

 

 

Fellow Subsidiary

Company:
  • Armstrong Hydraulics SA (Pty) Limited
  • Fric - ROT S.A.I.C
  • Gillet Abgassysteme Zwickau Gmbh
  • Gillet Exhaust Technologies Pty Limited
  • Monroe Springs Australia Pty Limited
  • Monroe Australia Pty Limited
  • Monroe Czechia S.R.O
  • Monroe Mexico S.A.de C.V
  • Shanghai Tenneco Exhaust System Company Limited
  • Tenneco Automotive (Thailand) Limited
  • Tenneco (Beijing) Ride Control Systems Company Limited
  • Tenneco (Suzhou) Company Limited
  • Tenneco Automotive Europe Bvba
  • Tenneco Automotive Europe Coordination Center BVBA
  • Tenneco Automotive Brazil Limited
  • Tenneco Automotive Eastern Europe Sp.zo.o.,
  • Tenneco Automotive Europe Limited
  • Tenneco Automotive France S.A.S.,
  • Tenneco Automotive Heinrich Gillet Gmbh
  • Tenneco Automotive Iberia S.A (Fonus)
  • Tenneco Automotive Iberica , S.A.
  • Tenneco Automotive Japan Limited
  • Tenneco Automotive Operating Company Inc.,
  • Tenneco Automotive Polska Sp.zo.o.,
  • Tenneco Automotive Trading Company
  • Tenneco Automotive (Pty) Limited
  • Tenneco Ride Control South Africa (Pty) Limited.
  • Tenneco Tongtai (Dalian) Exhaust system Company Limited
  • Walker Manufacturing company
  • Walker Exhaust (Thailand) Company Limited
  • Monroe Auto Equipment Company
  • Tenneco (Guangzhou) Company Limited
  • Tenneco Walker Seward

 

 

CAPITAL STRUCTURE

 

AS ON 30.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

254275000

Equity Shares

Rs.10/- each

Rs. 2542.750 Million

22500

Preference Shares

Rs.100/- each

Rs. 2.250 Million

 

 

 

 

 

Total

 

Rs. 2545.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

237823584

Equity Shares

Rs.10/- each

Rs. 2378.236 Million

 

 

 

 

 

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

254275000

Equity Shares

Rs.10/- each

Rs. 2542.750 Million

22500

Preference Shares

Rs.100/- each

Rs. 2.250 Million

 

 

 

 

 

Total

 

Rs. 2545.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

182843584

Equity Shares

Rs.10/- each

Rs. 1828.436 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

1828.436

1040.836

1040.836

(b) Reserves & Surplus

(2327.283)

(1772.022)

(1798.027)

(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)

(498.847)

(731.186)

(757.191)

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

2842.603

2333.908

2060.350

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

35.082

31.161

0.000

(d) long-term provisions

66.191

46.357

52.132

Total Non-current Liabilities (3)

2943.876

2411.426

2112.482

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

500.000

918.195

1204.573

(b) Trade payables

1979.185

2742.098

2465.168

(c) Other current liabilities

1046.263

740.885

418.038

(d) Short-term provisions

27.558

31.212

33.836

Total Current Liabilities (4)

3553.006

4432.390

4121.615

 

 

 

 

TOTAL

5998.035

6112.630

5476.906

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2379.802

1830.489

1233.449

(ii) Intangible Assets

19.779

17.644

20.769

(iii) Capital work-in-progress

130.737

427.467

521.860

(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

134.159

327.582

388.551

(e) Other Non-current assets

0.082

80.000

80.087

Total Non-Current Assets

2664.559

2683.182

2244.716

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

779.445

886.244

787.541

(c) Trade receivables

1382.519

1363.891

1225.453

(d) Cash and cash equivalents

985.561

995.357

1016.853

(e) Short-term loans and advances

152.963

176.122

165.909

(f) Other current assets

32.988

7.834

36.434

Total Current Assets

3333.476

3429.448

3232.190

 

 

 

 

TOTAL

5998.035

6112.630

5476.906

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Turnover

9027.331

9179.505

7300.763

 

Other Income

NA

NA

NA

 

TOTAL

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

NA

NA

NA

 

 

 

 

 

Less

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

42.837

458.149

212.591

 

 

 

 

 

Less

FINANCIAL EXPENSES

391.987

277.981

316.828

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION 

(349.150)

180.168

(104.237)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

206.111

154.163

114.222

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(555.261)

26.005

(218.459)

 

 

 

 

 

Less

TAX

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

(555.261)

26.005

(218.459)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD 

(1782.534)

(1808.539)

(1590.080)

 

 

 

 

 

 

Balance Carried to the B/S

(2337.795)

(1782.534)

(1808.539)

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(3.04)

NA

NA

 

 

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) operations

(243.810)

556.813

42.416

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Return on Total Assets

(PBT/Total Assets}

(%)

(9.46)

0.46

(4.41)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

1.11

(0.04)

0.29

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

(6.70)

(4.45)

(4.31)

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.94

0.77

0.78

 

 

 

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

1040.836

1040.836

1828.436

Reserves & Surplus

(1798.027)

(1772.022)

(2327.283)

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

(757.191)

(731.186)

(498.847)

 

 

 

 

long-term borrowings

2060.350

2333.908

2842.603

Short term borrowings

1204.573

918.195

500.000

Total borrowings

3264.923

3252.103

3342.603

Debt/Equity ratio

(4.312)

(4.448)

(6.701)

 

 

 

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

7300.763

9179.505

9027.331

 

 

25.734

(1.658)

 

 

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

7300.763

9179.505

9027.331

Profit

(218.459)

26.005

(555.261)

 

(2.99%)

0.28%

(6.15%)

 

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

No

8

Designation of contact person

No

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 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

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

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

FINANCIAL RESULTS

 

The loss incurred during the year is mainly on account of devaluation of the Indian Rupee which was very high during the year. The INR depreciated against the US dollar by 11% (60.09 INR/USD vs 54.33 INR/USD) with the peak recorded in the month of August at 68.36 /USD a 26% depreciation over March 13 valuation. For most part of the year, the USD continued to be valued at 62-64 INR which was a 16% devaluation over the previous year. The same trend was seen with EURO too a devaluation of Indian rupee by around 18% and an average of 20% throughout the year. (69.81 INR/ EUR vs 82.57 INR/EUR Mar13 vs Mar 14) As most of the External Commercial Borrowings (ECB) were denominated in foreign currency, the impact of the foreign currency valuations impacted the financials in a big way costlier interest payments and the foreign currency impact of the restatement of the outstanding ECB amount. The total impact of this is about Rs 690.000 Million.

 

The decline in turnover is mainly on account of deterioration in the market for Light Vehicles and Commercial Vehicles in the Indian market.

 

BACKGROUND ABOUT THE COMPANY

 

Subject was incorporated as a Private Limited Company on January 12, 1998 under the Companies Act, 1956 (the Act). The Company was formed by Tenneco Inc., USA (the Ultimate holding company) to manufacture, distribute and/or otherwise deal in automobile parts and components and other related activities including establishment of a comprehensive Research and Development Centre. Pursuant to a Scheme of amalgamation as per the order of honorable Madras High Court dated July 9, 2010, Tenneco RC India Private Limited (TRCIPL), Tenneco Exhaust India Private Limited (TEIPL), Tenneco India Engineering and Shared Services Private Limited (TIESS) and Renowned Auto Products Mfrs Private Limited (RAPS) were amalgamated with the Company effective from April 1, 2008.

 

UNSECURED LOAN

 

(Rs. In Million)

Particulars

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWING

 

 

Loans and advances from others

2842.603

2333.908

SHORT TERM BORROWING

 

 

Rupee term loans from banks

500.000

918.195

Total

3342.603

3252.103

 

FIXED ASSETS

 

Tangible assets

 

  • Land
  • Buildings
  • Plant and equipment
  • Furniture and fixtures
  • Vehicles
  • Office equipment
  • Computer equipments
  • Other equipments

 

Intangible assets

 

  • Goodwill
  • 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.66.26

UK Pound

1

Rs.101.99

Euro

1

Rs.74.79

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

KVT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILITY

1~10

--

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

--

--CREDIT LINES

1~10

2

--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

 

14

 

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.