MIRA INFORM REPORT

 

Report No. :

337863.2

Report Date :

10.09.2015

 

IDENTIFICATION DETAILS

 

Name :

LUWA INDIA PRIVATE LIMITED (w.e.f.12.08.1998)

 

 

Formerly Known As :

LUWA INDIA LIMITED

 

 

Registered Office :

No.95, Industrial Suburb, 2nd Stage, Yeshwanthapura, Bangalore – 560022, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015 (Unaudited)

 

 

Date of Incorporation :

10.05.1993

 

 

Com. Reg. No.:

08-014292

 

 

Capital Investment / Paid-up Capital :

Rs.3.009 Million

 

 

CIN No.:

[Company Identification No.]

U01711KA1993FTC014292

 

 

IEC No.:

0793009332

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRL00262D

 

 

PAN No.:

[Permanent Account No.]

AAACL3106B

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of Industrial Air Engineering Machinery.

 

 

No. of Employees :

122 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (32)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of "LUWA AIR ENGINEERING BETEILIGUNGS GMBH, Germany. Subject is an established company having moderate track record.

 

For the financial year ended 2014, company possesses moderate operational performance and it has incurred loss from its operational activities during a year under a review.

 

As per the unaudited financial of 2015, company has achieved sales turnover of Rs. 1010.000 Million which is declined by 5% over previous year sales turnover of Rs. 1070.000 Million. However, company has reported profit of company has reported profit of Rs. 40.600 Million against the net loss of Rs. 5.675 Million.

 

Moreover, rating remain constrained on account of company's moderate operational risk profile and unfavorable gap between trade payables to its receivables.

 

In view of aforesaid, the company can be considered for business dealing with some caution.

 

Note: unaudited financial for the year 2015 provided for your reference and figures are not verified.

 

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 PARTED BY

 

Name :

Mr. Rijesh Raman

Designation :

Manager Controlling

Contact No.:

91-8105771251

 

 

LOCATIONS

 

Registered Office/Factory :

No.95, Industrial Suburb, 2nd Stage, Yeshwanthapura, Bangalore – 560022, Karnataka, India

Tel. No.:

91-80-23370277

Fax No.:

91-80-23378721

E-Mail :

info@luwa.in

Website :

www.luwa.com

Location:

Rented

 

 

Factory :

# 3P-5P, Gangadharanapalya, Kasaba Hobli, Off Tumkur Road, Nelamangala, Bangalore North – 562123, Karnataka, India

Tel. No.:

080 – 6742 2001

Fax No.:

080 – 2337 8721

E-Mail :

info@luwa.in

Location:

Owned

 

 

Branch Office :

701, Chiranjiv Towers, 43, Nehru Place, New Delhi – 110019, India

Tel. No.:

011 – 2648 3326

Fax No.:

011 – 2648 3327

E-Mail :

info@luwa.in

Location:

Owned

 

 

DIRECTORS

 

As on 30.09.2014

 

Name :

Mr. Raimund Robert Koenig

Designation :

Director

Address :

Herzog-Sigmund-Str8, Gruenwald, 82031,  Germany

Date of Birth/Age :

29.05.1956

Experience:

8 Years

Date of Appointment :

09.05.2007

DIN No.:

02236851

 

 

Name :

Mr. Thomas Trauttmansdorff Weinsberg

Designation :

Director

Address :

Kopernikusstr.3, 1st Floor Main Flat, Munich, 81679, Germany

Date of Birth/Age :

23.03.1965

Experience:

8 Years

Date of Appointment :

09.05.2007

DIN No.:

02247566

 

 

Name :

Mr. Gottfried Abrell

Designation :

Director

Address :

Waelde 9, 88263 Horgenzell

Date of Birth/Age :

12.01.1962

Experience:

7 Years

Date of Appointment :

01.01.2008

DIN No.:

02266670

 

 

KEY EXECUTIVE

 

Name :

Mr. Rijesh Raman

Designation :

Manager Controlling

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Names of Shareholders

 

No. of Shares

Luwa Air Engineering Beteligungs GmbH (Formerly Known As Gruenwald Equity Beteligungs Vi GmbH), Germany

 

300923

Gruenwald Equity Engineering Gmbh (Formerly Known As Gruenwald Equity Beteligungs GmbH), Germany

 

10

Total

 

300933

 

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 :

Manufacturer, Exporter and Importer of Industrial Air Engineering Machinery.

 

 

Products :
  • Axial and Centrifugal Fans
  • Humidification
  • Air Conditioning Plant

 

 

Brand Names :

Loomsphere

Pneumablo

 

 

Agencies Held :

Not Available

 

 

Exports :

 

Products :
  • Humidification  Plants
  • Overhead Travelling
  • Cleaners

Countries :
  • Indonesia
  • USA
  • European Country
  • Bangladesh
  • Nepal
  • Sri Lanka

 

 

Imports :

 

Products :
  • Steel Products
  • Filter Cloth

Countries :
  • Switzerland
  • China

 

 

Terms :

 

Selling :

L/C and Credit

 

 

Purchasing :

Credit (60 Days)

 

 

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 :

Retailers’

 

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 :

122 (Approximately)

 

 

Bankers :

Banker Name

Canara Bank

Branch Address

14, Industrial Suburb, Tumkur Road, Bangalore – 560022, 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

31.03.2015

(Unaudited)

(Rs. in Million)

31.03.2014

(Rs. in Million)

Long-term Borrowings

 

 

Loans and advances from related parties

64.430

60.848

 

 

 

Total

64.430

60.848

Note:

 

Repayment terms are as follow

 

Term loan is repayable in six equal yearly installment from 15th January, 2013 amounting to CHF 3,00,000 (AS at 31st March, 2014 Rs. 20.283 Million). Interest rate is arrived at six months Swiss Libor Plus 200 basis points. (As on 31st March, 2015 2.0764% p.a)

 

Term loan is to be secured by plant and machinery as well the disposal amount of factory premises.

 

The borrowings agreement provides as option for conversion of loan in full or part into equity share capital of the company at the option and sole discretion of the lender and confirmation from holding company i.e. Luwa Air Engineering Beteiligungs GmBH during the tenure of the agreement subject to approval from statutory authorities.

 

Current maturities includes Rs. 40.565 Million (Previous year Rs. 17.222 Million) which has fallen due for payment on 15th January, 2013 and 15th January 2014 in term of the agreement with the lender. Necessary application to the appropriate authority has been made on 29th January, 2014 and the lender has also agreed to redraw the repayment schedule in this respect.

 

Auditors :

 

Name :

Jha Yadav and Company

Chartered Accountant

Address :

64A, Hemanta Basu Sarani, 1st Floor, Room No. 103, Kolkata – 700001, West Bengal, India

Tel No.:

91-33-22481111/1507/6962

Fax No.:

91-33-22486960

Email:

ayadav@jhayadav.com

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

AAJFJ8196K

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding Company:
  • Luwa Air Engineering Beteiligungs GmbH , Germany

 

 

Fellow Subsidiary Companies:

Luwa Air Engineering (Shanghai) Limited, China

Address : 310, Shenxia Lu, Jiading District, Shanghai – 201818, p.r. China

Line of Business : Textile Air Engineering

 

Luwa Air Engineering AG, Switzerland

Address : Weiherallee 11a, Ch – 8610 Uster, Switzerland

Line of Business : Textile Air Engineering

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2015 (UNAUDITED)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1000000

Equity Shares

Rs.10/- each

Rs. 10.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

300933

Equity Shares

Rs.10/- each

Rs. 3.009 Million

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2015

(Unaudited)

31.03.2014

31.03.2013

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

3.009

3.009

2.000

(b) Reserves & Surplus

177.786

137.155

76.820

(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)

180.795

140.164

78.820

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

64.430

60.848

68.886

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

1.378

1.033

0.653

Total Non-current Liabilities (3)

65.808

61.881

69.539

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

293.471

411.056

279.685

(c) Other current liabilities

294.142

272.220

232.669

(d) Short-term provisions

21.470

21.901

19.915

Total Current Liabilities (4)

609.083

705.177

532.269

 

 

 

 

TOTAL

855.686

907.222

680.628

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

103.932

104.745

102.237

(ii) Intangible Assets

0.179

0.406

0.773

(iii) Capital work-in-progress

108.537

47.399

2.682

(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)

12.181

12.306

6.944

(d)  Long-term Loan and Advances

149.236

84.882

111.476

(e) Other Non-current assets

50.778

23.575

18.283

Total Non-Current Assets

424.843

273.313

242.395

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

185.627

170.872

143.139

(c) Trade receivables

163.395

182.285

198.383

(d) Cash and cash equivalents

68.958

81.162

8.195

(e) Short-term loans and advances

0.731

184.244

64.524

(f) Other current assets

12.132

15.346

23.992

Total Current Assets

430.843

633.909

438.233

 

 

 

 

TOTAL

855.686

907.222

680.628

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

(Unaudited)

31.03.2014

31.03.2013

 

SALES

 

 

 

 

Income

1013.167

1067.866

955.892

 

Other Income

3.205

3.616

 

 

TOTAL (A)

1016.372

1071.482

955.892

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

743.660

837.022

 

 

947.544

(Including Financial Expenses and Depreciation )

 

 

 

 

Employees benefits expense

90.131

78.573

 

Other expenses

102.205

152.331

 

TOTAL (B)

935.996

1067.926

 

 

 

 

Less

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

80.376

3.556

 

 

 

 

Less

FINANCIAL EXPENSES (D)

13.394

12.057

 

 

 

 

 

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

66.982

(8.501)

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

2.761

2.537

 

 

 

 

 

 

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

64.221

(11.038)

8.348

 

 

 

 

 

Less

TAX (H)

23.591

(5.363)

1.689

 

 

 

 

 

 

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

40.630

(5.675)

6.659

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD 

71.145

76.820

70.161

 

 

 

 

 

 

Balance Carried to the B/S

111.775

71.145

76.820

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

81.932

117.042

23.333

 

TOTAL EARNINGS

81.932

117.042

23.333

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Material, Components, Store, Spares and Loose Tools

NA

182.818

146.312

 

TOTAL IMPORTS

NA

182.818

146.312

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

135.01

(23.24)

33.30

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

(Unaudited)

31.03.2014

31.03.2013

Current Maturities of Long term debt

64.430

60.848

34.443

Cash generated from operations

NA

NA

NA

Net cash flows from (used in) operations

NA

70.509

13.592

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2015

(Unaudited)

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

4.01

(0.53)

0.70

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

7.93

0.33

0.87

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

8.74

(1.30)

1.24

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.36

(0.08)

0.11

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.71

0.87

1.31

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.71

0.90

0.82

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

2.000

3.009

3.009

Reserves & Surplus

76.820

137.155

177.786

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

78.820

140.164

180.795

 

 

 

 

long-term borrowings

68.886

60.848

64.430

Short term borrowings

0.000

0.000

0.000

Current maturities of long-term debts

34.443

60.848

64.430

Total borrowings

103.329

121.696

128.860

Debt/Equity ratio

1.311

0.868

0.713

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Total Income

955.892

1071.482

1016.372

 

 

12.092

-5.143

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Total Income

955.892

1071.482

1016.372

Profit

6.659

(5.675)

40.630

 

0.70%

(0.53%)

4.00%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

Yes

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last 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

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

10236738

19/04/2013 *

70,000,000.00

CANARA BANK

TUMKUR ROAD BRANCH,NO.14,INDUSTRIAL SUBURB, TUMKUR ROAD, YESHWANTHPUR, BANGALORE, KARNATAKA - 560022, INDIA

B74685017

 

* Date of charge modification

 

TRADE REFERENCES

 

 

  • Sintex Infra Projects Limited, Abhijeet Complex – 1, 7th Floor, Mithakali 6 Road, Elisbridge Ahmedabad – 380006, Gujarat, India
  • Raymond UCO Denim Private Limited, Plot C-1, Midc Yavatmal, Lohara Village, Yavatmal District – 445001, Mahabharata, India

Name: Mr. Sanjeev Pandey

Tel No: 07232 – 249221

  • Welspun India Limited, Anjar Bhachau Road, Village – Varsamedi, Taluka: Anjar (Kutch) – 370110, Gujarat, India
  • Reliance Industries Limited, Silvassa Manufacturing Division, 342, Kharadpada, Naroli, Silvassa – 396235, Dadra And Nagar Haveli, India

 

FIXED ASSETS

 

Tangible assets

 

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

 

Intangible assets

 

  • 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 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.66.29

UK Pound

1

Rs.101.89

Euro

1

Rs.73.98

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KVT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILITY

1~10

--

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

32

 

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.