MIRA
INFORM REPORT
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Report Date : |
13.01.2011 |
IDENTIFICATION DETAILS
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Name : |
KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED |
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Formerly Known As : |
OM KOTAK MAHINDRA LIFE INSURANCE COMPANY LIMITED |
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Registered Office : |
9th Floor, Godrej Coliseum, Behind Everard Nagar, Sion (E),
Mumbai-400022, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
31.08.2000 |
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Com. Reg. No.: |
11-128503 |
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CIN No.: [Company
Identification No.] |
U66030MH2000PLC128503 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMO02128A |
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PAN No.: [Permanent
Account No.] |
AAACO3983B |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Subject is engaged in the business of Life Insurance and Annuity. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (44) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. There
appears some accumulated losses recorded by the company. However, trade relations
are reported as fair. Directors are reported to be experienced and
respectable businessmen. Business is active. Payments are reported to be
usually correct and as per commitments. In view of strong promoters 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 : |
9th Floor, Godrej Coliseum, Behind Everard Nagar, Sion (E),
Mumbai-400022, |
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Tel. No.: |
91-22-66215999 |
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Fax No.: |
91-22-66215757 / 66215858 |
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E-Mail : |
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Website : |
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Back Office : |
Kotak Infinity, Building No. 21, |
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Toll Free No.: |
1800 209 8800 |
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E-Mail : |
DIRECTORS
As on 02.08.2010
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Name : |
Mr. Uday Kotak |
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Designation : |
Chairman |
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Address : |
62, NCPA Apartment, Nariman Point, Mumbai – 400021, |
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Date of Birth/Age : |
15.03.1959 |
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Date of Appointment : |
31.08.2000 |
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Name : |
Mr. Shivaji Dham |
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Designation : |
Director |
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Address : |
Eastern Suburb CHS Limited, Bungalow No. 12, Gulab Park, Next to Basant
Theatre, Chembur, Mumbai – 400074, Maharashtra, India |
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Date of Birth/Age : |
08.02.1957 |
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Date of Appointment : |
31.08.2000 |
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Name : |
Mr. Guarang Shah |
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Designation : |
Managing Director |
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Address : |
1502, |
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Date of Birth/Age : |
25.10.1961 |
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Date of Appointment : |
01.11.2007 |
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Name : |
Mr. Mukesh Mittal |
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Designation : |
Alternate Director |
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Address : |
Flat 2404, Queen’s Gardens, |
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Date of Birth/Age : |
16.08.1970 |
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Date of Appointment : |
29.04.2009 |
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Name : |
Mr. Andrew Willis Cartwright |
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Designation : |
Alternate Director |
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Address : |
Flat No. 1501, Eral Marathon Next Gen, Off G.K. Marg, Lower Parel,
Mumbai – 400013, Maharashtra, India |
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Date of Birth/Age : |
02.06.1958 |
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Date of Ceasing : |
29.04.2009 |
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Name : |
Mr. Rafael Galdon |
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Designation : |
Director appointed in casual vacancy (Professional) |
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Address : |
Caroline House, |
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Date of Birth/Age : |
29.08.1951 |
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Date of Appointment : |
30.09.2009 |
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Name : |
Mr. Dipak Gupta |
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Designation : |
Director |
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Address : |
Flat No. 32, A – Wing, Tanna Residency, 392, Veer Savarkar Marg, |
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Date of Birth/Age : |
13.02.1961 |
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Date of Appointment : |
31.08.2000 |
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Name : |
Mr. Hasan Askari |
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Designation : |
Director |
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Address : |
22, |
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Date of Birth/Age : |
29.06.1945 |
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Date of Appointment : |
25.09.2000 |
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Name : |
Mrs. Sobha Singh Thakur |
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Designation : |
Director |
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Address : |
1161, Abdul Court, Flat No. 20, 7th Floor, Suryavanshi
Marg, Dadar, Mumbai – 400028, Maharashtra, India |
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Date of Birth/Age : |
26.08.1929 |
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Date of Appointment : |
17.08.2001 |
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Name : |
Mr. Vinneet Nayyar |
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Designation : |
Director |
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Address : |
5A, Friend Colony West, |
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Date of Birth/Age : |
30.11.1938 |
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Date of Appointment : |
17.08.2001 |
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Name : |
Ms. Pallavi Shroff |
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Designation : |
Director |
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Address : |
S – 270, Greater Kailash – II, |
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Date of Birth/Age : |
22.04.1956 |
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Date of Appointment : |
17.08.2001 |
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Name : |
Mr. Paul Brendan Hanratty |
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Designation : |
Director |
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Address : |
38 |
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Date of Birth/Age : |
22.04.1961 |
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Date of Appointment : |
30.06.2008 |
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Name : |
Mr. Pankaj Desai |
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Designation : |
Managing Director |
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Address : |
Mount Everest Co-Operative Housing Society, 1st Floor, Flat
No. 4, 12 Peddar Road, Padam Hill, Mumbai, Maharashtra, India |
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Date of Birth/Age : |
31.12.1961 |
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Date of Appointment : |
04.11.2008 |
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Name : |
Mr. Crispin Sonn |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
03.02.1968 |
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Date of Appointment : |
13.02.1968 |
KEY EXECUTIVES
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Name : |
Mr. G. Murlidhar |
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Designation : |
Chief Operating Officer and Company Secretary |
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Address : |
Flat No. 12, Gayatri 160, |
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Date of Birth/Age : |
27.07.1960 |
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Date of Appointment : |
30.11.2000 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 02.08.2010
|
Names of Shareholders |
|
No. of Shares |
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Kotak Mahindra Bank Limited, |
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260247974 |
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Old Mutual Plc. |
|
132675452 |
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Uday Kotak Jointly with Kotak Mahindra Bank Limited, |
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10 |
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S.A.A. Pinto Jointly with Kotak Mahindra Bank Limited, |
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10 |
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T.V. Raghunath Jointly with Kotak Mahindra Bank Limited, |
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10 |
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C. Jayaram Jointly with Kotak Mahindra Bank Limited, |
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10 |
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Dipak Gupta Jointly with Kotak Mahindra Bank Limited |
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10 |
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K.V.S. Manian Jointly with Kotak Mahindra Bank Limited |
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10 |
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Jasmin Bhatt Jointly with Kotak Mahindra Bank Limited |
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10 |
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Kotak Mahindra Prime Limited, |
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54000000 |
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Kotak Mahindra Capital Company Limited, |
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63366753 |
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Total |
|
510290249 |
As on 02.08.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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26.00 |
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Bodies
corporate |
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23.00 |
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Nationalized
or other banks |
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51.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of Life Insurance and Annuity. |
GENERAL INFORMATION
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No. of Employees : |
Information denied by the management. |
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Bankers : |
Not Available |
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Banking
Relations : |
-- |
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Auditors : |
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Name 1 : |
M.P. Chitale and Company Chartered Accountant |
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Address : |
Hammam House, ambalal Doshi Marg, Mumbai – 400001, |
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Name 2 : |
S.R. Batliboi and Company Chartered Accountant |
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Address : |
22, Camac Street, 3rd Floor, Kolkata – 700016, West |
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Holding Company: |
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Joint Venture: |
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Fellow Subsidiaries: |
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Entities managed by
Fellow Subsidiaries: |
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Enterprises in
which key management personnel have significant influence: |
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Enterprises in which
relatives of key management personnel have significant influence: |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
625000000 |
Equity Shares |
Rs.10/- each |
Rs.6250.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
510290249 |
Equity Shares |
Rs.10/- each |
Rs.5102.902
Millions |
Note:
(a) Of the above, 260,248,044 (2009 – 260,248,044) Equity Shares of Rs. 10 each fully paid up are held by Kotak Mahindra Bank Limited, the holding company and its nominees, 54,000,000 (2009-54,000,000) and 63,366,753 (2009-63,366,753) fully paid-up Equity Shares of Rs. 10 each are held by Kotak Mahindra Prime Limited and Kotak Mahindra Capital Company Limited respectively, which are subsidiaries of Kotak Mahindra Bank Limited.
(b) During the year, the Company has issued Nil (2009 - 30,017,076) Equity Shares of Rs 10 each fully paid up at par, by way of rights to its existing shareholders
(c) During the year, Kotak Mahindra Prime Limited renounced Nil (2009-3,375,000) fully paid up Equity Shares of Rs. 10 each to Kotak Mahindra Capital Company Limited
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SOURCES OF FUNDS |
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Shareholders’ Funds: |
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Share Capital |
5102.902 |
5102.902 |
4802.732 |
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Reserves and Surplus |
520.363 |
520.363 |
520.363 |
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Credit/[Debit] Fair Value Change Account |
0.000 |
0.000 |
0.000 |
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Sub-Total |
5623.265 |
5623.265 |
5323.095 |
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Borrowings |
0.000 |
0.000 |
0.000 |
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Policyholders’ Funds: |
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|
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Credit/[Debit] Fair Value Change Account |
49.810 |
0.000 |
0.000 |
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Policy Liabilities |
|
|
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- Participating |
5354.202 |
4596.018 |
3910.750 |
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- Non-participating |
1094.841 |
709.480 |
596.745 |
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- Annuities Participating |
422.748 |
360.032 |
317.596 |
|
- Annuities Unit-Linked Non-Participating |
66.037 |
44.181 |
16.948 |
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- Unit-Linked Non-Participating |
2298.959 |
1361.127 |
479.066 |
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Insurance Reserves |
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- Participating |
14.110 |
0.000 |
0.000 |
|
- Non-participating |
0.000 |
0.000 |
0.000 |
|
- Annuities Participating |
38.723 |
37.981 |
36.964 |
|
- Annuities Unit-Linked Non-Participating |
0.000 |
0.000 |
0.000 |
|
- Unit-Linked Non-Participating |
0.000 |
0.000 |
0.000 |
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Linked Liabilities |
56428.443 |
30419.252 |
22974.368 |
|
Fair Value Change |
(4025.871) |
(1193.433) |
(410.951) |
|
Total Provision for Linked Liabilities |
52402.572 |
29222.819 |
22563.417 |
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Sub-Total |
61742.002 |
36331.638 |
27921.486 |
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Funds for Future Appropriation:-Linked Liabilities |
2055.916 |
1085.152 |
531.010 |
|
Others |
1.009 |
1.009 |
1.009 |
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|
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|
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Total |
69422.192 |
43041.064 |
33776.600 |
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APPLICATION OF
FUNDS |
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|
Investments |
|
|
|
|
– Shareholders |
2491.819 |
2823.103 |
1312.978 |
|
– Policyholders’ |
10147.431 |
6277.699 |
5704.368 |
|
Assets Held to Cover Linked Liabilities |
54458.488 |
30307.971 |
23094.427 |
|
Loans |
52.194 |
58.251 |
33.339 |
|
Fixed Assets |
559.925 |
568.966 |
425.603 |
|
Current Assets |
|
|
|
|
Cash and Bank Balances |
869.540 |
1282.719 |
1535.633 |
|
Advances and Other Assets |
1062.771 |
939.215 |
676.523 |
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Sub-Total (A) |
1932.311 |
2221.934 |
2221.156 |
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Sundry Creditors |
158.435 |
70.583 |
302.732 |
|
Other Current Liabilities |
2441.343 |
2249.851 |
1979.741 |
|
Provisions |
171.373 |
139.847 |
110.620 |
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|
|
|
|
Sub-Total (B) |
2771.151 |
2460.281 |
2393.093 |
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Net Current
Assets (C) = (A-B) |
(838.840) |
(238.347) |
(180.937) |
|
Miscellaneous Expenditure (To the extent not written off or adjusted) |
0.000 |
0.000 |
0.000 |
|
Debit Balance in Profit and Loss Account (Shareholders’ Account) |
2551.175 |
3243.421 |
3386.822 |
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|
|
|
|
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Total |
69422.192 |
43041.064 |
33776.600 |
PROFIT & LOSS
ACCOUNT
|
Particular |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Amount transferred from policyholders account (Technical Account) |
708.478 |
202.069 |
193.945 |
|
Income From Investments |
|
|
|
|
Interest, Dividends and Rent Gross- Net of amortisation |
176.108 |
209.619 |
160.568 |
|
Profit on sale/ redemption of investments |
28.171 |
117.595 |
78.781 |
|
(Loss on sale/ redemption of investments) |
(0.013) |
(64.174) |
(69.169) |
|
Other Income |
0.000 |
0.000 |
0.227 |
|
|
|
|
|
|
TOTAL (A) |
912.744 |
465.109 |
364.352 |
|
|
|
|
|
|
Expenses other than those directly related to the insurance business |
43.538 |
20.418 |
2.604 |
|
Contribution to the Policyholders Fund |
176.960 |
301.290 |
1088.815 |
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|
|
|
|
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TOTAL (B) |
220.498 |
321.708 |
1091.419 |
|
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|
|
|
|
Profit before
tax |
692.246 |
143.401 |
(727.067) |
|
Provision for taxation |
0.000 |
0.000 |
(8.322) |
|
Profit after tax |
692.246 |
143.401 |
(718.745) |
|
|
|
|
|
|
Appropriations |
|
|
|
|
Balance at the beginning of the year |
(3243.421) |
(3386.822) |
(2668.077) |
|
Loss carried to the Balance Sheet |
(2551.175) |
(3243.421) |
(3386.822) |
|
|
|
|
|
|
Earnings Per
Share (Basic and Diluted) |
1.36 |
0.29 |
(1.80) |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors |
158.435 |
70.583 |
302.732 |
Note: The registered
office of the company has been shifted from 6th Floor, Peninsula
Chambers,
Background:
Kotak Mahindra Old Mutual Life Insurance Limited (‘the
Company’) was incorporated on August 31, 2000 as a Company under the Companies
Act, 1956 to undertake and carry on the business of life insurance and annuity.
The Company obtained a license from the Insurance Regulatory and Development
Authority (‘IRDA’) dated January 10, 2001 for carrying on the business of life
insurance and annuity. The license has been renewed regularly and is in force
as at March 31, 2010.
FINANCIAL RESULTS:
The Directors have declared an addition to the Policyholders’ Accumulation Account to give a return of 6.75% (2009 - 5%) to participating life policyholders and 8% (2009 - 7%) to annuity participating policyholders for the year ended 31st March 2010. A reversionary bonus of 2% (2009 - 2%) has been declared on traditional products
The transfer from the Shareholders’ Account to the Policyholders’ Account during the current year was to make good the deficit in one segment of the business. Transfers from the Policyholders’ Account to Shareholders’ Account are the surplus in the Non-Participating policyholders account and amounts not exceeding10%distributed to the Participating Policyholders.
BUSINESSANDDISTRIBUTION CHANNELS
The business of The
Company is broadly divided into three major channels.
The Company continues
its pursuit of creating and maintaining a professionally-trained life advisor
force capable of providing appropriate advice and customised solutions to
consumers. To encourage, develop and support successful life advisors and to enhance
their skills, The Company had sponsored
Life Advisors for “Certified Financial Planner” (CFP) and “Kotak Financial
Planner” (KFP) course. The company’s
life advisors are ranked among the top quartile of productive Life Advisors in
the country. To improve life advisor and employee engagement, The company conducted programme to improve
efficiency and productivity in Sales across the country. This is expected to
drive retail sales behaviour and improve tracking and measurement of sales
activity. This will help in building long term sustainable distribution.
Alternate Channels
The company has added strong partnerships during the year
and has focused in growing channel partner relationships. This has expanded the
business both in terms of value and scale.
Bancassurance - Kotak Mahindra Bank continues to
have the most significant share of Alternate channels business with new
business premium of approx. Rs.2920.000 Millions in FY 09-10. Besides Kotak Mahindra Bank, we
have corporate agency / referral tie ups with several cooperative and
commercial banks which together contributed Rs. 200.000 Millions.
Corporate agents - The company had 95 corporate agency tie ups as of
31 March 10. It has 50 exclusive branches to manage local and regional relationships. Strengthening and
growing this model was a major focus in FY 09-10.
Brokers - The
company has tie ups with 117 brokers. It has over 16% market share of
business done by brokers in the industry and are at 3rd position on
this basis (IRDA data 08-09). In FY 09-10 The
company has grown business by approx20%in this category.
Group Insurance
The Company’s Group
Business continues to perform exceedingly well year-on-year. The Company
provides a range of products from Term Insurance, Credit Insurance to Gratuity
and Superannuation Schemes to cater to its group clientele. Strong
relationships within the Kotak Group as also the IRDA licensed Insurance
Brokers have resulted in generation of significant business in this segment..
At the end of the year, 656 policies were on the books. The Company generated a premium income of Rs.
2213.400 Millions (FY 2009 Rs 1482.800 Millions ) fromthe group insurance
business representing a growth of 49 %.
BRANCHNETWORK
In a hugely diversified market like
BRAND
Advertising space in life insurance industry is highly
cluttered and the biggest challenge faced by The Company was to create a distinct identity for
its brand. In December, 09, a new Child Plan TV campaign was launched. The ad
was well received.. The new tag line “Faidey Ka Insurance” is based on The Company’s core strength of “Investment
Expertise” and neatly combines the idea of good returns with protection. The TV
campaign in December was followed by extensive Outdoor, radio and internet
campaigns spread across
Fixed Assets:
- Goodwill
- Intangible –
Software
- Land –
Freehold
- Leasehold
Property
- Buildings
- Furniture and
Fittings
- Information
Technology Equipments
- Vehicles
- Office
Equipments
Contingent Liabilities:
|
Particular |
As on 31.03.2010 (Rs. in
Millions) |
As on 31.03.2009 (Rs. in
Millions) |
|
Guarantees given by or on behalf of the Company |
1.388 |
0.700 |
|
Others – Insurance claims in appeal net of provision (Gross value of claims Rs 67.620 millions (2009 – Rs 20.570 millions), out of which reinsured Rs 32.113 millions (2009 - Rs 1.638
millions) and provision Rs 10.852 millions (2009 Rs 7.702 millions) ) |
24.655 |
11.230 |
|
Total |
26.043 |
11.930 |
PRESS RELEASE:
KOTAK
LIFE INSURANCE LAUNCHES E-INSURANCE
ONLINE
TERM PLANS FROM KOTAK LIFE THAT OFFER CONVENIENCE
HIGHLY COMPETITIVE RATES REDUCED RATES FOR WOMEN IN BOTH PLANS REDUCED RATES FOR
NON SMOKERS IN E-PREFERRED TERM MEDICAL EXAMINATION AT HOME MULTIPLE PAYMENT
OPTIONS
Mumbai, November 10, 2010: Kotak Mahindra
Old Mutual Life Insurance Limited (Kotak Life Insurance), one of
The company has launched the portal with two pure term products for
online purchase viz. e-Term and e-Preferred Term.
1. e-Term is available for sum assureds between Rs. 0.300 millions and
less than Rs. 2.500 millions and has reduced, highly competitive rates for
women.
2. e-Preferred Term gives preferential, highly competitive rates for
women and non smokers and is available for sum assureds of over Rs. 2.500 millions.
Speaking at the launch, Mr. G
Murlidhar, Chief Operating Officer and Chief Financial Officer, Kotak Mahindra
Old Mutual Life Insurance said “Independent buying of financial as well
as other products and services online is expected to increase exponentially
over the next few years, aided by factors such as rising internet penetration,
convenience, speed, cost advantage and sturdier online payment safety
architectures. Today there exists a niche of financially aware individuals,
comfortable with the online mode and willing to make definitive choices
regarding their investments and be rewarded for their efforts. The online model
proffers such individuals the twin reward of cost savings and convenience”
The Purchase
process
A customer can select the plan of his choice and opt for monthly,
quarterly, half yearly or annual premium payment mode. After filling the
proposal form, the customer could opt to pay policy premium using either
net-banking or credit card. The Proposal Deposit Receipt (PDR) is issued online
after payment confirmation. Purchases are transacted through a highly secure
transaction environment. Customer can schedule an appointment for pickup of
mandatory documents on the portal itself for final issuance of policy. On
receipt of documents (and reports of medical tests where required), policy hard
copy is dispatched to the customer within 4-6 working days.
Benefits
1. Quick Issuance – Issuance within 4-6 working days of receipt of
documents. Further the possibility of errors that could creep in manual data
entry process is largely eliminated leading to faster processing and policy
issuance
2. Medical at home – Medical examination of policy prospects (in cases
where the test is required) will be done by a qualified doctor at the
customer's home. This facility is initially rolled out in 9 cities –
3. Competitive Rates – Term plans available online afford the customer
the option to purchase insurance at competitive rates. To quote an example, a
sum assured of Rs. 5.000 lakhs for a 30 year policy term would cost a 30 year
old nonsmoker male an annual premium of Rs. 0.007 million (inclusive of Service
Tax) and a non-smoker female of the similar age Rs. 0.005 million (inclusive of
Service Tax).
ABOUT KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED
Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture
between Kotak Mahindra Bank Limited, its affiliates and Old Mutual plc. A
Company that combines its international strengths and local advantages to offer
its customers a wide range of innovative life insurance products, helping them
take important financial decisions at every stage in life and stay financially
independent. The company covers over 3 million lives and is one of the fastest
growing insurance companies in
ABOUT KOTAK MAHINDRA
Kotak Mahindra is one of
OLD MUTUAL
Old Mutual plc is an international long-term savings, protection and
investment Group. Originating in
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.45.16 |
|
|
1 |
Rs.70.64 |
|
Euro |
1 |
Rs.58.68 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
-- |
|
--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 |
|
44 |
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.