MIRA
INFORM REPORT
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Report Date : |
04.01.2011 |
IDENTIFICATION DETAILS
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Name : |
MORGAN STANLEY INDIA COMPANY PRIVATE LIMITED |
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Formerly Known as : |
J M MORGAN STANLEY SECURITIES PRIVATE LIMITED |
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Registered Office : |
4th Floor, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
10.06.1998 |
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Com. Reg. No.: |
11-115305 |
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CIN No.: [Company
Identification No.] |
U22990MH1998PTC115305 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Providing Financial Services. |
RATING & COMMENTS
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MIRA’s Rating : |
A (59) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 35000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Morgan Stanley Group. It is a well established company
having fine track. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at 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 – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
Management Non Co-operative.
LOCATIONS
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Registered Office : |
4th Floor, |
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Tel. No.: |
91-22-22096600 |
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Fax No.: |
91-22-22096608/ 22096601 |
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E-Mail : |
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Website : |
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Branches : |
1101 to 1116, Hilton Tower, Nariman Point,
Mumbai 400 021,
Global Markets
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DIRECTORS
As on 30.08.2010
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Name : |
Mr. Sanjay Natverlal Shah |
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Designation : |
Managing Director |
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Address : |
401/B, Kailash Towers, Vallabh Baug Lane, Ghatkopar East, Mumbai – 400075,
Maharashtra, India |
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Date of Birth/Age : |
09.05.1968 |
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Date of Appointment : |
05.06.2006 |
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Name : |
Mr. Ridham Navnit Desai |
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Designation : |
Director |
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Address : |
501, Rushab Junction of 8th And 10th Road, Near HDFC
Bank, Khar West, Mumbai-400052, |
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Date of Birth/ Age: |
19.02.1968 |
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Date of Appointment : |
15.05.2006 |
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Name : |
Mr. Jayendra Pangal Nayak |
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Designation : |
Director |
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Address : |
1002, Gloriosa Apartment, N.M. Kale Marg, Dadar (West), Mumbai-400025,
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Date of Birth/Age : |
05.07.1947 |
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Date of Appointment : |
18.06.2010 |
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Name : |
Mr. David Andrew Russell |
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Designation : |
Director |
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Address : |
House B, 8 Tai tam Road, |
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Date of Birth/Age : |
10.04.1966 |
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Date of Appointment : |
23.04.2009 |
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Name : |
Mr. Parag Laxmikant Gude |
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Designation : |
Director |
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Address : |
302, Sidha Ratnakar, P Balluu Marg, Prabhadevi, Mumbai – 400025, |
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Date of Birth/Age : |
21.12.1967 |
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Date of Appointment : |
27.10.2008 |
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Name : |
Mr. Suresh Narsappa Talwar |
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Designation : |
Director |
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Address : |
10 Shiv Shakti Bavan, 146 Maharashi karve Road, Churchgate
Reclamation, Mumbai – 400020, |
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Date of Birth/Age : |
21.11.1938 |
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Date of Appointment : |
21.06.2001 |
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Date of Ceasing : |
27.10.2008 |
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Name : |
Mr. Daneil Robert Hegglin |
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Designation : |
Director |
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Address : |
House E 40, |
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Date of Birth/Age : |
02.05.1961 |
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Date of Appointment : |
23.08.2004 |
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Date of Ceasing : |
23.04.2009 |
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Name : |
Mr. Narayan Ramchandran |
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Designation : |
Director |
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Address : |
D – 51, Sobha Ivory, 2, 7/1, |
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Date of Birth/Age : |
14.07.1962 |
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Date of Appointment : |
27.10.2008 |
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Date of Ceasing: |
18.06.2010 |
KEY EXECUTIVES
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Name : |
Mr. Anil Vasudev Shenoy |
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Designation : |
Secretary |
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Address : |
401, |
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Date of Birth/Age : |
31.10.1965 |
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Date of Appointment : |
14.09.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.08.2010
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Names of Shareholders |
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No. of Shares |
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Morgan Stanley India Securities Private Limited |
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9999999 |
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Morgan Stanley Properties India Real Estate Private Limited |
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1 |
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Total |
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10000000 |
Equity Shares Break (Percentage of Total Equity)
As on 30.09.2010
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Category |
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Percentage |
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Bodies Corporate (not mentioned above) |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Providing Financial Services. |
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GENERAL INFORMATION
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No. of Employees : |
Information declined |
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Bankers : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Delloite Haskins and Sells Chartered Accountant |
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Address : |
12, |
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Holding Company : |
U99999MH1995PTC086838 |
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Parent of Holding Company: |
Morgan Stanley Mauritius Company Limited |
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Subsidiary Company |
U67120MH2008PTC179905 |
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Fellow Subsidiaries: |
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Subsidiary of the Ultimate Holding Company |
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CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10 /- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares (Of the above 9999999 equity shares are held by Morgan Stanley India
Securities Private Limited, the holding company) |
Rs. 10 /- each |
Rs. 100.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
100.000 |
100.000 |
100.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
8787.950 |
6929.960 |
4439.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
8887.950 |
7029.960 |
4539.300 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
8887.950 |
7029.960 |
4539.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
105.080 |
115.420 |
148.202 |
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Capital work-in-progress |
1.610 |
16.360 |
42.864 |
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INVESTMENT |
5456.200 |
850.000 |
800.183 |
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DEFERREX TAX ASSETS |
144.810 |
28.720 |
96.458 |
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Deposit placed with Stock Exchange |
22.550 |
22.550 |
22.550 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
0.000
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Sundry Debtors |
200.590
|
510.870 |
493.302
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Cash & Bank Balances |
17413.420
|
21492.670 |
53022.281
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Other Current Assets |
0.000
|
0.000 |
0.000
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Loans & Advances |
1128.800
|
1530.010 |
2374.126
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Total
Current Assets |
18742.810
|
23533.550 |
55889.709
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
1900.670
|
17424.310 |
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Other Current Liabilities |
13552.350
|
41.250 |
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Provisions |
132.090
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71.080 |
35.804
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Total
Current Liabilities |
15585.110
|
17536.640 |
52460.666
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Net Current Assets |
3157.700
|
5996.910 |
3429.043
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
8887.950 |
7029.960 |
4539.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Market Operations – Brokerage, Fees and Interest |
3283.270 |
|
6024.340 |
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Investment Banking Operations |
1843.680 |
682.070 |
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Other Income |
536.080 |
658.370 |
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TOTAL (A) |
5663.030 |
5562.240 |
6024.340 |
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Less |
EXPENSES |
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Payments to and Provisions for Employees |
1876.000 |
851.350 |
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Operating and Administration Expenses |
891.870 |
829.790 |
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TOTAL (B) |
2767.87 |
1681.14 |
2313.230 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2895.160 |
3881.100 |
NA |
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Less |
FINANCIAL
EXPENSES (D) |
0.040 |
10.180 |
NA |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2895.120 |
3870.920 |
NA |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
68.220 |
72.730 |
NA |
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PROFIT BEFORE
TAX (E-F) (G) |
2826.900 |
3798.190 |
3711.110 |
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Less |
TAX (I) |
968.910 |
1307.530 |
1281.600 |
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PROFIT AFTER TAX
(G-I) (J) |
1857.990 |
2490.660 |
2429.510 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6357.250 |
3866.590 |
1452.280 |
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Short/
Excess provision for taxes of earlier years |
-- |
-- |
15.200 |
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BALANCE CARRIED
TO THE B/S |
8215.240 |
6357.250 |
3866.590 |
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EARNINGS IN
FOREIGN CURRENCY |
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Brokerage (Gross) |
4.800 |
3.380 |
NA |
|
|
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Investment Banking Operations |
82.330 |
526.450 |
NA |
|
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TOTAL EARNINGS |
87.130 |
529.830 |
NA |
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IMPORTS |
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Capital Goods |
2.630 |
19.570 |
NA |
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TOTAL IMPORTS |
2.630 |
19.570 |
NA |
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Earnings Per
Share (Rs.) |
185.80 |
249.070 |
-- |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
32.81
|
44.78 |
40.33 |
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Net Profit Margin (PBT/Sales) |
(%) |
86.10
|
89.97 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
14.99
|
16.06 |
6.62 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.54 |
0.82 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.75
|
2.49 |
11.56 |
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Current Ratio (Current Asset/Current Liability) |
|
1.20
|
1.34 |
1.07 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
(Rs.
In Millions)
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
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- Total Outstanding dues to micro and small enterprises |
-- |
-- |
NA |
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- Total outstanding dues to creditors other than micro and small
enterprises |
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|
NA |
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- Traders |
14999.070 |
17315.390 |
NA |
|
- Others |
401.600 |
108.920 |
NA |
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Total |
15400.670 |
17424.310 |
NA |
Financial
Highlights:
The Gross Income earned by the company during the year was Rs. 5663.030
Millions as against Rs. 5562.240 Millions earned in the previous year. After accounting
for the expenditure of Rs. 2836.130 Millions (Previous year – Rs. 1764.050
Millions), the profit before tax was Rs. 2826.900 Millions as against Rs.
3789.190 Millions reported in the previous year. After providing for a tax of
Rs. 968.910 Millions (Previous year Rs. 1307.530 Millions), the company ‘s
profit is Rs. 1857.900 Millions as against Rs. 2490.660 Millions reported in
the previous year.
Business review
and future outlook:
Equity markets across the world have exhibited a strong performance over
the last twelve months, equity indices for developed markets such as FTSE 100 and S and P 500 have
registered 18% and 4% growth, respectively in the specified period. The Indian
equity markets have outperformed most of the other indices, with Sensex
witnessing growth of 25.4% in the last twelve months.
Growth was largely funded through increased government spending in all
major world economies which has helped revive the capital markets.
According to the Bloomberg data, FlIs made net investments worth US$17.4
8n in the year 2009 and US$6.4 Bn in the year to date in 2010 in the equity
market against net withdrawals of US$13.1 Bit in the year 2008. Domestic mutual
funds have however followed a reverse trend and have withdrawn US$1.1 Bn in
2009 and US$1.7 Sn during the year to date in 2010 compared to net purchases of
US$3.3 Bn during the year 2008.
The M and A advisory activities remained relatively robust with Morgan
Stanley advising MandA landmark transaction worth US$19 Bn since September 09
including, Us$3.7 Bn Abbott’s proposed acquisition of Piramal Healthcare
Solutions, demerger of Unitech’s infrastructure and telecom business into
Unitech Infra, acquisition of controlling stake in Karl Steiner AG by HCC for
US$40 MM, Hospira’s US$400 MM acquisition of Orchid’s injectable finished
dosage business, APB’s sale of breweries in India to Heineken and Temasek’s
US$175 MM acquisition of NYSE Euronext’s slake in National Stock Exchange of
India. Based on data from Bloomberg, in YTD 2010, Morgan Stanley retains its
position as the #1
They would be cautiously optimistic for the year 2010-11. Economic
growth has gained momentum, portfolio flows have been strong in the lasl 6
months, capita) markets activity has accelerated, and corporate capex plans
have started getting executed. The differential in growth rates between
Emerging economies and Developed economies has led to the beginning of a
secular trend of capital flows towards high growth domestic economies such as
In the last three years. the Company has strengthened its presence in
the listed futures and derivatives business, and also put into place trading
platforms for electronic trading and DMA. With flows and activity levels
picking up again, and the team focusing on primary markets opportunity, they
believe that they are in a very good competitive position. However, at the same
time, competition is getting more intense, with more domestic as well as
international players setting up shop in
The longer term picture for the business continues to remain positive.
The objective will be to ensure they are present across all products platforms
in cash and derivatives, provide a complete product suits to the clients to
leverage the global strengths. They look upon the emerging opportunities such
as stock loan and borrow, cash settlement for futures, longer dated optionality
instruments, introduction of Indian depository receipts for overseas firms to
get listed inn India positively. All these will serve to increase the depth and
breadth of the market, and provide them with more growth opportunities.
Contingent
liabilities-
(a) Income tax demand disputed in appeal Rs.380.48 million (Previous
year Rs. 242.59 million). The income tax department has raised demand of Rs.
1,365.48 million (Previous year Rs. 837.59 million), which is in dispute. The
Company has filed an appeal against the said assessment with Commissioner of
Income Tax (Appeals) and Dispute Resolution Panel. Based on the decisions of
the Appellate authorities and the interpretations of other relevant provisions,
the Company has been advised that no further provision for tax is required over
and above the existing provision of Rs. 985 million (Previous year Rs 595
million).
(b) The Company had availed customs duty credit of Rs. 7.95 million
(Previous year Rs. 7.95 million) for fixed assets imported from April 06 to
November 07, under the Duty Free Credit Entitlement Certificate under ‘Served
From India’ Scheme of Director General of Foreign Trade (DGFT). DGFT issued a show
cause notice in an earlier year, alleging that the Company has not met the
export obligations/other conditions required to be met under ‘Served From
India’ Scheme and thereafter passed an order, forfeiting the duty credit
certificate effective from April 06 and charging penalty and interest at 15%
p.a., on the credit availed. The amount on this count, excluding penalty, works
out to Rs. 9.43 million (Previous year Rs. 9.43 million). The Company had
contested the order issued by DGFT and is hopeful of succeeding in appeals.
(c) The Company has received letters and show cause cum demand notices
from the Commissioner of Service Tax for alleged discrepancies noticed during
the course of audit conducted by the department covering the period from 1”
April 2003 to 3jSt March 2008. As per the letters and show cause cum demand
notices, the department has observed shortfall in payment of service tax
liability amounting to Rs. 34.97 million (Previous year Rs. 51.65 million). The
Company has responded to the letters and notices, justifing the positions that
it has taken with respect to applicability of service tax and contended that
there is no shortfall in payment of service tax liability. Based on the
interpretations of relevant service tax provisions and judicial precedents, the
Company is confident of successfully contesting the potential service tax
demand and eventually does not expect any liability to materialize.
Bankers Charges
Report as per Registry
|
Name of the company |
J M MORGAN STANLEY SECURITIES PRIVATE LIMITED |
|
Presented By |
HDFC Bank Limited, Sandoz House, Dr. Annie Besant Road, Worli,
Mumbai-400018, Maharashtra, India |
|
1) Date and description of instrument creating the change |
Letter of Hypothecation of Book Debts Dated 16th September 1999 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 250.000 Millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation by way of First charge pari passu with the existing and future charges to the bank, all the book debts outstandings monies receivables, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the company in the course of its business by any persona, firm, company or body corporate or by the Government department or officer or any municipal or local or public or semi-government body of Authority or any body corporate or undertaking or project whatever in the public sector. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The charge operates as a continuing security for the due repayment of the said credit facilities and interest and commission thereon and all legal and other costs, charges, payments, re-imbursement and expenses relating thereto and payable hereunder and incidental to this security or fro enforcement thereof. Nature of facility: Cash Credit / Overdraft Facility Rate of Interest: Interest at the rate as may be communicated by the bank to the company from time to time with quarterly rates. Margin of Securities: The company shall at all times during the continuance of this security maintain the said debts of a sufficient amount (as estimated by the bank) so as to provide the margin of security as may from time to time be advised to the company by the bank. |
|
5) Name and Address and description of the person entitled to the charge. |
HDFC Bank Limited, Sandoz House, Dr. Annie Besant Road, Worli,
Mumbai-400018, Maharashtra, India |
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
|
Corporate
identity number of the company |
U22990MH1998PTC115305 |
|
Name of the
company |
MORGAN STANLEY INDIA COMPANY PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
4th Floor, |
|
This form is for |
Modification of
Charge |
|
Charge
Identification (ID) No. of the charge to be modifies |
90234699 |
|
Type of charge |
Book Debts |
|
Particular of
charge holder |
Hongkong and Shanghai Banking Corporation, 52/60, |
|
Nature of
instrument creating charge |
No Due
certificate from ICICI Bank Limited dated 24.08.2009 |
|
Date of
instrument Creating the charge |
24.08.2009 |
|
Amount secured by
the charge |
Rs. 2800.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest The company shall
pay interest at such rate as may be notified by the said Banks to the
company. Terms of
Repayment As mutually
agreed between the company and Banks Margin Nil Extent and
Operation of the charge Satisfaction of
dues to ICICI Bank Others |
|
Short particulars
of the property charged |
Hypothecation of
the company present and future book debts, outstanding, etc due to and bills.
|
|
Date of last
modification prior to the present modification |
06.05.2009 |
|
Particulars of
the property charged |
Satisfaction in
full of Rs. 800.000 Minions to the ICICI Bank Limited out of the consortium
loan of Rs. 3600.000 Millions. Thus, the total amount secured remains Rs.
2800.000 Millions after satisfaction of full dues to ICICI Bank Limited. All
other terms and conditions of Consortium Agreement remain as it is. |
Fixed Assets:
- Leasehold Improvements
- Telecommunication Equipment
- Microcomputers
- Furniture and Fixtures
- Goodwill
- Application Software
- BSE Exchange Membership
- NSE Non Refundable Deposit
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.44.67 |
|
|
1 |
Rs.69.45 |
|
Euro |
1 |
Rs.59.37 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
TOTAL |
|
59 |
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.