MIRA INFORM REPORT

 

 

Report No. :

339996

Report Date :

09.09.2015

 

IDENTIFICATION DETAILS

 

Name :

S.P.M. (INDIA) LIMITED

 

 

Registered Office :

# 132/52, GD House, Bendre Nagar, Subramanyapura, Main Road, Subhashchandra Bose Road, BSK 2nd Stage, Bangalore – 560070, Karnataka

Tel. No.:

91-80-26668822 / 80-26668826 / 80-26668820

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.04.1997

 

 

Com. Reg. No.:

08-022059

 

 

Capital Investment / Paid-up Capital :

Rs.6.620 Million

 

 

CIN No.:

[Company Identification No.]

U85110KA1997PLC022059

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject Manufactures, Special-purpose machine, which include assembly lines for assembling various sub-assemblies in the automotive industry, special-purpose leak test machines for automotive components, and special-purpose machines in process verification and industrial washing machines.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (42)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 260000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company incorporated in the year 1997. It is having satisfactory track.

 

Rating takes into consideration above average financial risk profile of the company marked by adequate networth base and comfortable gearing in FY14. Further, company has earned fair profit margin in FY14.

 

However, rating constraints on account of decrease in sales turnover in the year under consideration.

 

Trade relations are fair. Business is active. Payment terms are reported to be slow but correct.

 

The company can be considered for business dealings with 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

CRISIL

Rating

Long term Rating : BB-

Rating Explanation

Have inadequate credit quality and high credit risk

Date

January 2015

 

Rating Agency Name

CRISIL

Rating

Short term Rating : A4

Rating Explanation

Have minimal degree of safety and carry very high credit risk.

Date

January 2015

 

 

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 DENIED BY

 

Name :

Mr. Suresh

Designation :

Finance Department

Contact No.:

91-7829999856

Date :

07.09.2015

 

 

LOCATIONS

 

Registered Office :

# 132/52, GD House, Bendre Nagar, Subramanyapura, Main Road, Subhashchandra Bose Road, BSK 2nd Stage, Bangalore – 560070, Karnataka, India

Tel. No.:

91-80-26668822 / 80-26668826 / 80-26668820 / 1939

Mobile No.:

91-7829999856 (Mr. Suresh)

Fax No.:

91-80-26660783

E-Mail :

finance@spmil.com

maketing@spmil.com

hr@spmil.com

 

 

Pune - Sales / Services / Spares Office :

Opposite to Vishal theatre, Bombay - Pune Road, Pimpri Chowk,
Pimpri, Pune – 400 018, Maharashtra, India

Mobile No.:

 91 - 93266 51455 (Mr. Umesh Madival)

 

 

New Delhi - Sales / Services / Spares Office :

Manager Marketing and Project North Region, New Delhi, India

Mobile No.:

91 - 93104 37388 (Mr. Vipin Kumar Prajapati)

 

 

Chennai - Sales / Services / Spares Office:

# 6/299, 6th Block, Maral Malai Adigal street, JJ Nagar, Moggappair East, Chennai – 600 037, Tamilnadu, India

Mobile No.:

91 - 9043417377 (Mr. Munish Engineer Service)

 

 

DIRECTORS

 

As on 30.09.2014

 

Name :

Dr. GDR Krishna

Designation :

Director

Address :

No. 1334, 27th Cross 26th Main, BSK II Stage, Bangalore- 560070, Karnataka, India

Date of Birth/Age :

04.03.1964

Date of Appointment :

01.04.1997

DIN No.:

00010754

 

 

Name :

Mr. Venkatesh Damodara Gogineni

Designation :

Director

Address :

No. 179, 1st Cross, BSK 3rd Stage, 3rd Phase, Bangalore- 560085, Karnataka, India

Date of Birth/Age :

10.10.1961

Date of Appointment :

01.04.1997

DIN No.:

02594379

 

 

Name :

Mr. Hanumanth Ramachandra Desai

Designation :

Additional director

Address :

No.632, 4th Cross, 5th Main, Banashankari 1st Stage, Bangalore, 560050, Karnataka, India

Date of Birth/Age :

18.04.1957

Date of Appointment :

30.09.2010

DIN No.:

02978061

 

 

KEY EXECUTIVES

 

Name :

Mr. Suresh

Designation :

Finance Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Names of Shareholders

 

No. of Shares

G.S. Adilakshmi Jointly with Ms. G.S. Chaitra

 

220668

G D Venkatesh

 

201450

G D R Krishna

 

201450

GK Parijatha

 

17200

GV Hemanlatha

 

17200

G. Sonika Krishna

 

1008

Akila V Gogineni

 

1008

G. Jawahar Krishna

 

1008

Aishwarya V Gogineni

 

1008

Total

 

662000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on 30.09.2014

 

Category

Percentage

Directors or relatives of Directors

100.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject Manufactures, Special-purpose machine, which include assembly lines for assembling various sub-assemblies in the automotive industry, special-purpose leak test machines for automotive components, and special-purpose machines in process verification and industrial washing machines.

 

 

Products :
  • Special Purpose Machines
  • Leak Testing Machines
  • Assembly Lines
  • Hydraulic Presses
  • Test Rigs, Jigs and Fixtures
  • Industrial Washing Machines
  • Material Handling Systems

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :
  • GD India Private Limited
  • GDR Mek Tek Private Limited
  • G D Softech Private Limited
  • Quicloc Private Limited
  • GD Techcentre Private Limited

 

 

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 :

Bank Name

State Bank of India

Branch

SME Branch, No. 11, 1st Floor, 15th Cross, 20th Main, J.P. Nagar, 4th Phase, Bagalore – 560078, Karnataka, 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

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

Term loan from Banks

0.000

0.229

(Secured by personal guarantee of the Directors of the company)

 

 

Vehicle Loan

0.057

0.212

(Secured by hypothecation of vehicle and the Personal Guarantee of the Director of the company)

 

 

 

 

 

Short-term borrowings

 

 

Loan from Bank

 

 

Buyers Credit (Foreign Letter of Credit)

0.000

8.732

Cash Credit

102.228

132.575

(The above loans are secured by hypothecation of the Stocks and Book debt of the Company and also the Charge on Plant and machinery and Building of the Company and Personal Guarantee of the Directors of the company)

 

 

 

 

 

Total

102.285

141.748

 

Financial Institutions :

Tata Capital Financial Services Limited, One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai -  400001, Maharashtra, India

 

 

Auditors :

 

Name :

A Bala Murali Krishna

Chartered Accountants

Address :

MU-201, Towns End, Avalahalli Village, Doddaballapur Road, Yalahanka, Bangalore – 560064, Karnataka, India

Tel. No.:

91-80-22386179 / 65995440

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

ADUPK3408P

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Enterprises significantly influenced by key Management Personnel :
  • GD India Private Limited
  • Quicloc Private Limited
  • G D Techcentre Private Limited
  • G D Softech Private Limited
  • G D R Mektek Private Limited

 

 

 

 

 

CAPITAL STRUCTURE

 

As on 30.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

750000

Equity Shares

Rs.10/- each

Rs.7.500 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

662000

Equity Shares

Rs.10/- each

Rs.6.620 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

6.620

6.620

6.620

(b) Reserves & Surplus

85.603

72.287

59.777

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

8.400

8.400

Total Shareholders’ Funds (1) + (2)

92.223

87.307

74.797

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

16.636

13.401

7.649

(b) Deferred tax liabilities (Net)

2.453

3.042

3.572

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

19.089

16.443

11.221

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

102.228

141.307

90.074

(b) Trade payables

125.356

159.509

113.790

(c) Other current liabilities

147.141

108.414

68.430

(d) Short-term provisions

6.320

8.524

4.324

Total Current Liabilities (4)

381.045

417.754

276.618

 

 

 

 

TOTAL

492.357

521.504

362.636

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

36.034

35.165

34.287

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

0.087

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

57.594

21.687

5.779

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

93.628

56.939

40.066

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

125.952

81.374

67.490

(c) Trade receivables

126.369

294.682

191.883

(d) Cash and cash equivalents

50.979

21.599

20.596

(e) Short-term loans and advances

95.429

66.910

42.601

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

398.729

464.565

322.570

 

 

 

 

TOTAL

492.357

521.504

362.636

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Revenue from Operations

437.503

575.035

407.042

 

Non-Operating Income

9.510

11.902

9.165

 

Non Other Income

2.129

5.299

3.485

 

TOTAL (A)

449.142

592.236

419.692

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

244.819

367.137

262.975

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(44.397)

(11.190)

(22.856)

 

Employees benefits expense

107.893

96.784

71.780

 

Other expenses

81.891

88.475

67.296

 

TOTAL (B)

390.206

541.206

379.195

 

 

 

 

 

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

58.936

51.030

40.497

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

32.856

24.384

18.600

 

 

 

 

 

 

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

26.080

26.646

21.897

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

5.953

7.048

6.336

 

 

 

 

 

 

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

20.127

19.598

15.561

 

 

 

 

 

Less

TAX (H)

6.811

7.087

4.978

 

 

 

 

 

 

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

13.316

12.511

10.583

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

20.11

18.9

15.99

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

3.189

10.452

0.802

Cash generated from operations

NA

NA

NA

Net cash flow from operating activity

NA

NA

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

3.04

2.18

2.60

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

13.47

8.87

9.95

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.09

3.76

4.29

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.22

0.22

0.21

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.29

1.77

1.31

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.05

1.11

1.17

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

6.620

6.620

6.620

Reserves & Surplus

59.777

72.287

85.603

 Share Application money pending allotment

8.400

8.400

0.000

Net worth

74.797

87.307

92.223

 

 

 

 

long-term borrowings

7.649

13.401

16.636

Short term borrowings

90.074

141.307

102.228

Current Maturities of Long-Term Debts

0.802

10.452

3.189

Total borrowings

98.525

165.160

122.053

Debt/Equity ratio

1.317

1.892

1.323

 

 

 

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

407.042

575.035

437.503

 

 

41.272

(23.917)

 

 

 

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

407.042

575.035

437.503

Profit

10.583

12.511

13.316

 

2.60%

2.18%

3.04%

 

 

 

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

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 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

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

Term loan from others

0.000

0.509

(Secured by personal guarantee of the Directors of the company)

 

 

 

 

 

Term loan from Related parties

 

 

Hemalatha

2.962

2.998

Dr. G D R Krishna

13.617

9.453

Total

16.579

12.960

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10552051

13/02/2015

100,000,000.00

TATA CAPITAL FINANCIAL SERVICES LIMITED

One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, 
Maharashtra - 400001, INDIA

C45078490

2

10356523

26/05/2014 *

50,000,000.00

TATA CAPITAL FINANCIAL SERVICES LIMITED

One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai, 
Maharashtra - 400001, INDIA

C10043693

3

10284194

24/03/2011

50,000,000.00

TATA CAPITAL LIMITED

ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA

B12088720

4

80014359

09/04/2014 *

225,700,000.00

State Bank of India

SME Branch, No. 11, 1st Floor, 15th Cross, 20th 
Main, J P Nagar 5th Phase, Bangalore, Karnataka - 
560078, INDIA

C05922802

 

 

FIXED ASSETS

 

  • Land
  • Building
  • Furniture
  • Plant and Machinery
  • Office Equipment
  • Vehicles
  • Computers
  • Software
  • Electrical Installation

 

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 records 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.66.60

UK Pound

1

Rs.102.30

Euro

1

Rs.74.60

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

KIN

 

 

Report Prepared by :

SUJ

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILITY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

4

--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

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

 

42

 

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.