MIRA
INFORM REPORT
|
Report Date : |
25.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
NEXT RETAIL INDIA LIMITED (w.e.f. 2007) |
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Formerly Known As : |
E MART INDIA LIMITED |
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Registered Office : |
Auto Cars Compound, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
04.12.2003 |
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Com. Reg. No.: |
11-143371 |
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Capital
Investment / Paid-up Capital : |
Rs.1112.000 Millions |
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CIN No.: [Company
Identification No.] |
U51395MH2003PLC143371 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKE00404F |
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PAN No.: [Permanent
Account No.] |
AABCE3142P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Distributors of Electronics and Electrical Appliances |
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No. of Employees
: |
1200 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 6350000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of videocon group. It is an established electronic
retail chain, having moderate track. Profitability of the company appears to be
low. However, trade relations are reported as fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some caution. |
NOTES: Any query related to this
report can be made on e-mail: infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
|
Name : |
Mr. Rakesh Mehta |
|
Designation : |
Accounts Manager |
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Date : |
20.08.2011 |
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Name : |
Mr. Rajendra M. Dungarwal |
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Designation : |
Chief Finance Officer |
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Date : |
20.08.2011 |
LOCATIONS
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Registered Office : |
Auto Cars Compound, |
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Tel. No.: |
Not Available |
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E-Mail : |
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Website : |
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Area : |
3500 sq ft |
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Location : |
Owned |
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Corporate Office / Work Office : |
1st Floor, Shiv Ashish, Behind Lathia Rubber, |
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Tel. No.: |
91-22-66897500 |
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Fax No.: |
91-22-28598484 |
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E-Mail : |
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Area : |
25000 sq ft |
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Location : |
Owned |
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Head Office: |
Techweb Centre, Ground Floor, Next to Raigad Military School, New Link
Road, Beharam Bagh, Oshiwara, Jogeshwari (West), Mumbai-400102, Maharashtra,
India. |
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Tel No.: |
91-22-42553000 |
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Head Office: |
Plot No. 296, 7th Floor, Udyog Vihar, Phase – II, Gurgaoan
– 122015, |
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Tel No.: |
91- |
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Branches : |
99-19A, Tel. No.: 91-44-45076001/ 45076002 Located At:
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DIRECTORS
As on 30.09.2010
|
Name : |
Mr. Venugopal Nandlal Dhoot |
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Designation : |
Director |
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Address : |
90, |
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Date of Birth/Age : |
30.09.1951 |
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Date of Appointment : |
20.12.2006 |
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DIN : |
00092450 |
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Name : |
Mr. Pradeepkumar Nandlal Dhoot |
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Designation : |
Director |
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Address : |
99, 1st Floor, Videocon House, Manav Mandir Road, Napean
Sea Road, Mumbai – 400006, Maharashtra, India |
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Date of Birth/Age : |
22.03.1960 |
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Date of Appointment : |
05.12.2003 |
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DIN : |
01635315 |
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Name : |
Mr. Krishnamahari Soundrarajan Raman |
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Designation : |
Director |
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Address : |
67, |
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Date of Birth/Age : |
17.07.1947 |
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Date of Appointment : |
06.11.2004 |
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DIN : |
00096768 |
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Name : |
Mr. NaveenKumar Mandhana |
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Designation : |
Director |
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Address : |
907-908/A, Akruti Nova, Saiwadi, Opposite
Teli Galli Andheri (East), Mumbai – 400069, |
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Date of Birth/Age : |
18.09.1956 |
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Date of Appointment : |
20.12.2006 |
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DIN : |
01222013 |
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Name : |
Mr. Suresh Madhava Hegde |
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Designation : |
Director |
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Address : |
51, Plot No.C1-C2, Dream Queen, |
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Date of Birth/Age : |
19.03.1958 |
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Date of Appointment : |
01.01.2008 |
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DIN : |
01321882 |
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Name : |
Mr. Subramanian Padmanabhan |
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Designation : |
Director |
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Address : |
30, Vishrambagh Society, |
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Date of Birth/Age : |
01.09.1939 |
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Date of Appointment : |
09.12.2007 |
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DIN : |
00001207 |
KEY EXECUTIVES
|
Name : |
Mr. Martin Michelle |
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Designation : |
Secretary |
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Address : |
17, Jai Vishwa |
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Date of Birth/Age : |
19.07.1988 |
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Date of Appointment : |
06.09.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
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Names of Shareholders |
|
No. of Shares |
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Platinum Appliances
Private Limited (Formerly: Dhoot Brothers Investment
Company Private Limited), Ahmednagar |
|
36000 |
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Synergy Appliances
Private Limited (Formerly: R. N. Dhoot Investment Company Private Limited),
Ahmednagar |
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36000 |
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Dome-bell Electronics India
Private Limited, Ahmednagar |
|
15036000 |
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Videocon Industries
Limited, |
|
21036000 |
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Greenfield Appliances
Private Limited (Formerly: Keshar Dhoot Investment Company Private Limited),
Ahmednagar |
|
36000 |
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Shree Dhoot Trading &
Agencies Limited, Ahmednagar |
|
15010000 |
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Solitaire Appliances
Private Limited (Formerly: V. N. Dhoot Investment Company Private Limited),
Ahmednagar |
|
10000 |
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Force Appliances Private
Limited (Formerly:Videocon Exports Private Limited), |
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15000000 |
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Applicomp ( |
|
15000000 |
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Electroparts ( |
|
10000000 |
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TekCare India Private
Limited (Formerly: Macotax Consultants Private Limited), |
|
5000000 |
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Waluj Components Private
Limited, Ahmednaga |
|
5000000 |
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Anirudha V. Dhoot |
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2000000 |
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Saurabh P. Dhoot |
|
2000000 |
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Venugopal N. Dhoot |
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2000000 |
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PradipkumarN. Dhoot |
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2000000 |
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Rajkumar
N. Dhoot |
|
2000000 |
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Total |
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111200000 |
As on 30.09.2010
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Category |
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Percentage |
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Bodies Corporate (not mentioned above) |
|
91.00 |
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Directors or relatives of directors |
|
9.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Distributors of Electronics and Electrical Appliances |
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Products : |
·
Electronics ·
Home Appliances |
GENERAL INFORMATION
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No. of Employees : |
1200 [Approximately] |
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Bankers : |
·
IDBI Bank, ·
ICICI Bank, Bandra |
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Facilities : |
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Auditors : |
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Name : |
KSS and Company Chartered Accountant |
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Address : |
3801, |
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Financial Institute : |
·
IDBI Trusteeship Services Limited |
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Associates/Subsidiaries : |
·
Sidharth Assets and Services Private Limited
(U74920MH2006PTC161438) ·
Videocon Appliances Limited, PLUG In, Pune
(U99999MH1988PTC046445) ·
Planet ‘M’ Retail Limited (U70102MH2007PLC167606) |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125,000,000 |
Equity Shares |
Rs.10/- each |
Rs.1250.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
111,200,000 |
Equity Shares |
Rs.10/- each |
Rs.1112.000
Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
1112.000 |
1002.000 |
1002.000 |
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2] Share Application Money |
0.000 |
1000.000 |
1000.000 |
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3] Reserves & Surplus |
477.084 |
13.874 |
12.218 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1589.084 |
2015.874 |
2014.218 |
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LOAN FUNDS |
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1] Secured Loans |
2349.067 |
2300.646 |
2053.927 |
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2] Unsecured Loans |
999.990 |
997.851 |
0.000 |
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TOTAL BORROWING |
3349.057 |
3298.497 |
2053.927 |
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DEFERRED TAX LIABILITIES |
9.652 |
12.718 |
0.000 |
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TOTAL |
4947.793 |
5327.089 |
4068.145 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
388.056 |
328.793 |
169.198 |
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Capital work-in-progress |
82.342 |
77.284 |
75.041 |
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INVESTMENT |
11.000 |
11.000 |
10.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
1.524 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
3290.583
|
2969.982
|
2092.614
|
|
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Sundry Debtors |
1137.888
|
901.904
|
819.831
|
|
|
Cash & Bank Balances |
180.266
|
266.953
|
77.906
|
|
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Other Current Assets |
130.430
|
159.175
|
356.919
|
|
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Loans & Advances |
858.790
|
1998.882
|
1248.453
|
|
Total
Current Assets |
5597.957 |
6296.896
|
4595.723 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
849.408
|
1238.906
|
449.699
|
|
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Current Liabilities |
277.251
|
144.668
|
331.330
|
|
|
Provisions |
4.903
|
3.310
|
2.313
|
|
Total
Current Liabilities |
1131.562 |
1386.884
|
783.342 |
|
|
Net Current Assets |
4466.395 |
4910.012
|
3812.381 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4947.793 |
5327.089 |
4068.145 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10925.823 |
8270.988 |
6644.430 |
|
|
|
Other Income |
14.267 |
157.959 |
64.080 |
|
|
|
TOTAL (A) |
10940.090 |
8428.947 |
6708.510 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods sold |
9392.457 |
6965.676 |
|
|
|
|
Salaries wages and employee’s benefits Expenses |
280.864 |
284.168 |
|
|
|
|
Operating and other Expenses |
855.146 |
878.651 |
|
|
|
|
TOTAL (B) |
10528.467 |
8128.495 |
6688.640 |
|
|
|
|
|
|
|
|
Less |
PROFIT/LOSS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
411.623 |
300.452 |
-- |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
350.572 |
248.998 |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
61.051 |
51.454 |
-- |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
41.004 |
31.158 |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
BEFORE TAX (E-F) (G) |
20.047 |
20.296 |
19.870 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
3.410 |
4.491 |
7.740 |
|
|
|
|
|
|
|
|
|
Add |
Deferred Tax |
3.067 |
[14.243] |
0.000 |
|
|
Add |
MAT Credit
Entitlement |
3.407 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
AFTER TAX (G-I) (J) |
23.111 |
1.562 |
12.130 |
|
|
|
|
|
|
|
|
|
|
[Short] / Excess
provision of income tax / fringe benefit tax for earlier years written back |
0.099 |
0.094 |
-- |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
13.874 |
12.218 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
37.084 |
13.874 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.22 |
0.02 |
0.12 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.21
|
0.02
|
0.18 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.18
|
0.24
|
0.30 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.33
|
0.31
|
0.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
0.01
|
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.82
|
2.32
|
1.41 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.95
|
4.54
|
5.87 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CRDITORS:
Rs. In millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
Due to Micro, Small and Medium |
0.000
|
0.000
|
0.000
|
|
Due to Others |
849.408
|
1238.906
|
449.699
|
|
Total |
849.408
|
1238.906
|
449.699
|
Financial Results and Operations
:
During the year, the
Company has earned a total income of Rs.10,940.09 Million as against Rs.8,428,95
Million for the previous year representing an increase of 29.80% as compared to
the previous year. Total Expenditure amounted to Rs.10,920.04 Million as
against Rs.8,408.65 Million representing an increase of 25.74 % as compared to
the previous year and the Profit after Tax amounted to Rs.23.11 Million as
against Rs.1.56 Million for the previous year representing a rise of 1,381.41%
as compared to the previous year.
The Company shall strive to
continue the business growth in the coming year(s) and enhance the
profitability of the Company.
During the year, the
Company has made a steady growth in the field of trading of Electrical and
Electronic Appliances and the number of retail outlets of the Company
throughout
The Board of Directors are
further taking steps towards making strategic growth in this field and are
exploring new avenues for creating a strong foothold of the Company.
Bankers Charges
Report as per Registry
|
Corporate identity
number of the company |
U51395MH2003PLC143371 |
|
Name of the
company |
NEXT RETAIL INDIA
LIMITED |
|
Address of the
registered office or of the principal place of business in |
Auto |
|
This form is for |
Modification
of Charge |
|
Charge
identification (ID) number of the charge to be modified |
10089876 |
|
Type of charge |
|
|
Particular of
charge holder |
IDBI Bank, |
|
Nature of
instrument creating charge |
Second
Supplemental Joint Deed of Hypothecation dated 8th January, 2011 between the Company
and IDBI Bank Limited, as Lead Bank and other Consortium Banks and Financial
Institution. |
|
Date of
instrument Creating the charge |
08.01.2011 |
|
Amount secured by
the charge |
Rs.4600.500
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest
- As agreed to between the Company and IDBI Bank Limited Consortium member
banks, from time to time. Terms of
Repayment - As agreed to between the Company and IDBI Bank Limited Consortium
member banks, from time to time. Margin - As
agreed to between the Company and IDBI Bank Limited Consortium member banks,
from time to time. Extent and
Operation of the charge - The Charge shall operate in favour of IDBI Bank
Limited Consortium member banks, for enhanced/renewed/reduced facility limit
granted vide Second Working Capital Consortium Agreement dated 08.01.2011,
together with interest, further interest, additional interest, liquidated
damages, expenses, cost and other monies whatsoever stipulated, jointly and
to each of them severally, as a continuing security by way of first charge
for due repayment on demand to IDBI Bank Consortium member banks. Others - As
agreed to between the Company and IDBI Bank Limited Consortium member banks,
from time to time. |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
All and singular
the Company’s stocks of packing material, finished goods, stores, book-debts
and all other current assets, including stock in transit, both present and
future, (excluding time) but including documents of title to goods and other
assets, such as outstanding monies, receivables including receivables by way
of cash, other scheme, claims including claims by way of refund of customs /
excise invoices, documents, contracts, engagements, securities, investments
and rights, both present and future, of the Company being and lying in the
cases or otherwise used in the business of the Company at such premises or in
transit now belonging to or that may at any time, during the continuance of
the facilities and this security belong to the Borrower or that may be held
by any party to the order or disposition of the Company, on the terms and
conditions contained in the Deed of Hypothecation dated 8th January, 2011
shall stand charged in favour of the Working Capital Lenders as a continued
security by way of first charge. |
|
Date of
instrument modifying the charge |
17.04.2010 |
|
Particulars of
the present modification |
By the present
modification of charge, the working capital limits has been enhanced from Rs.
2975.000 milliones to Rs. 4600.500 millions. The assets hypothecated in the
favour of bank vide Deed of Hypothecation dated 04.01.2008, subsequently
modified on 17.04.2010, shall stand charged in favour of the Working capital
lenders as continued security for the enhanced/ renewed/ reduced facilities
granted vide Second Supplemental Working Capital Consortium agreement dated
08.01.2011. |
FORM 8:
|
Corporate
identity number (CIN) Foreign company registration number |
U51395MH2003PLC143371 |
|
Name of the
Company |
Next Retail India Limited |
|
Address |
Auto Cars Compound, |
|
This form is for |
Creation of
Charge |
|
Type of Charge |
Immovable
Property Book Debts Movable Property
(Not being pledge) |
|
Particulars of
the charge holder |
IDBI Trusteeship Services Limited Cuffe Parade, Mumbai – 400005, CIN : L65190MH2004GOI148838 Email : sn.baheti@idbi.co.in |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Deed of
Hypothecation dated 25.01.2010 for secured working capital facilities of
Rs.1600.000 Millions as sanctioned IDBI Bank Limited |
|
Date of the
instrument creating or modifying the charge |
25.01.2010 |
|
Amount secured by
the charge |
Rs.1600.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of
Interests: As per the
Sanctioned Letter Terms of
Repayment: As per the
Sanctioned Letter Margin: As per the
Sanctioned Letter Extent and
operation of the Charge: The charge shall
operate as security for due repayment by the Company to IDBI Bank Limited
(IDBI) of its Rupee Term Loan of 1600.000 Millions together with interest,
liquidated damages, costs, charges, expenses and all other monies payable by
the Company to IDBI in terms of Hypothecation Agreement dated 25.01.2010
entered into by the Company with IDBI. |
|
Short particulars
of the property charged (including location of the property) |
First charge by
way of hypothecation and / or of Borrower's current assets, namely, stocks of
raw material, semi-finished and finished goods, stores and spares not relating to plant and machinery
(consumable stores and spares), bills receivable and book debts and all
movable current assets excluding machineries of the Borrower, both present
and future excluding such movables as may be permitted by the Bank from time
to time. Second mortgage
and charge in favour of the Bank ranking after the charge created and or to
be created in favour of the term lenders on the immovable and movable
properties (other than current assets) both, present and future, in the form and manner acceptable to the
Bank. |
FIXED ASSETS:
·
Building
·
Electrical Installation
·
Computers
·
Furniture and Fixture
·
Office Equipment
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.45.76 |
|
|
1 |
Rs.75.57 |
|
Euro |
1 |
Rs.65.97 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.