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MIRA
INFORM REPORT
|
Report Date : |
30.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
HSBC INVESTDIRECT SECURITIES (INDIA) LIMITED (w.e.f 15.07.2009) |
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|
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Formerly Known
As : |
IL AND FS INVESTSMART SECURITIES LIMITED |
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Registered
Office : |
Dhana Singh Processor Premises, J. B. Nagar, Andheri – |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
23.02.2006 |
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Com. Reg. No.: |
11-159988 |
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Capital
Investment / Paid-up Capital : |
Rs.1252.327 Millions |
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CIN No.: [Company Identification
No.] |
U67120MH2006PLC159988 |
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|
|
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMI07259A |
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PAN No.: [Permanent Account No.] |
AABCI4793G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Provides Online Trading,
share broking services, wealth management etc with the latest online trading
platforms. |
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No. of Employees
: |
Not divulged by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (43) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 3000000 |
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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 a subsidiary of HSBC Invest Direct ( There appears to be accumulated losses recorded by the company. Profitability
of the company is under pressure. However, trade relations are fair. Payments
are reported to be usually correct and as per commitments. In view of strong holding, 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.
INFORMATION DENIED BY
|
Name : |
Mr. Navin Chaudhary |
|
Designation : |
HR Manager |
|
Date : |
28.07.2011 |
LOCATIONS
|
Registered Office : |
Dhana Singh Processor Premises, J. B. Nagar, Andheri – Kurla Road,
Andheri (East), Mumbai – 400059, Maharashtra, India |
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Tel. No.: |
91-22-67897777 |
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Fax No.: |
91-22-67897968 |
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E-Mail : |
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Website : |
DIRECTORS
As On 25.08.2010
|
Name : |
Dr. Ajay Dua |
|
Designation : |
Chairman |
|
Address : |
B-3 Defence Colony, |
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Date of Birth/Age : |
15.07.1947 |
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Date of Appointment : |
11.12.2008 |
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DIN No. : |
02318948 |
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Name : |
Mr. Hardeep Singh |
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Designation : |
Director |
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Address : |
608 A, The Aralias, DLF Golf Course, DLF Phase 5, Gurgaon – 122 009, |
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Date of Birth/Age : |
08.09.1954 |
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Date of Appointment : |
11.12.2008 |
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DIN No. : |
00088096 |
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|
Name : |
Mr. Manasije Mishra |
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Designation : |
Director |
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Address : |
3/7, Sarvpriya Vihar, |
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Date of Birth/Age : |
31.07.1965 |
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Date of Appointment : |
30.01.2009 |
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DIN No. : |
01854071 |
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Name : |
Mr. Porus Fredy Vazifdar |
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Designation : |
Director |
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Address : |
1101 Safal Heights, opp. Union Bank, Chembur, Mumbai - 400 071, |
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Date of Birth/Age : |
30.01.1967 |
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Date of Appointment : |
18.02.2009 |
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DIN No. : |
02403394 |
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Name : |
Ms. Kashmira Joji Mathew |
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Designation : |
Director |
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Address : |
Flat No. G 1, |
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Date of Birth/Age : |
14.12.1970 |
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Date of Appointment : |
18.02.2009 |
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Date of Cessation : |
31.03.2010 |
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DIN No. : |
02341875 |
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Name : |
Mr. Anand Venkatachalam |
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Designation : |
Director |
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Address : |
Flat No. 11, 1st Floor Viswhatara Plot No. 310, Sri BabaShram 12th
Road Khar (West) Mumbai – 400 052, |
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Date of Birth/Age : |
12.05.1961 |
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Date of Appointment : |
11.12.2008 |
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Date of Cessation : |
19.07.2010 |
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DIN No. : |
02046694 |
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|
|
|
Name : |
Mr. Sanjay Kumar Bajaj |
|
Designation : |
Director |
|
Address : |
Flat No. 503, Bldg 6 Seawood Estate, Sector No. 54, 56, 58, NRI
Complex, Nerul, Navi Mumbai 400706, |
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Date of Birth/Age : |
02.11.1967 |
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Date of Appointment : |
11.12.2008 |
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Date of Cessation : |
19.07.2010 |
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DIN No. : |
02018745 |
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|
Name : |
Mr. Rajnish Bahl |
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Designation : |
Director |
|
Address : |
1204B |
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Date of Birth/Age : |
06.07.1965 |
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Date of Appointment : |
25.03.2010 |
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Date of Cessation : |
19.07.2010 |
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DIN No. : |
01699047 |
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|
Name : |
Mr. Rakesh Patel |
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Designation : |
Director |
|
Address : |
House 42, |
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Date of Birth/Age : |
03.05.1967 |
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Date of Appointment : |
11.12.2008 |
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Date of Cessation : |
25.03.2010 |
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DIN No. : |
00323658 |
KEY EXECUTIVES
|
Name : |
Ms. Sneha Doshi |
|
Designation : |
Company Secretary |
|
Address : |
502 Rajyog, Old Nagardas Road, Next to BJP Shivsena Office, Andheri (East),
Mumbai – 400069, Maharashtra, India |
|
Date of Appointment : |
01.12.2010 |
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Pan No.: |
BAXPS4021H |
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|
|
|
Name : |
Mr .Sachin Dua |
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Designation : |
Company Secretary |
|
Address : |
112 – A Wing, Nibbana Bldg, Nargis Dutt Road, Pali Hill, Bandra (West), Mumbai – 400 050, Maharashtra, India |
|
Date of Birth/Age : |
13.08.1974 |
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Date of Appointment : |
01.04.2010 |
|
Pan No.: |
AELPD9727N |
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|
Name : |
Ms. Kashmira Joji Mathew |
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Designation : |
Company Secretary |
|
Address : |
Flat No. G1, |
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Date of Birth/Age : |
14.12.1970 |
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Date of Appointment : |
24.10.2008 |
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Date of Cessation : |
31.03.2010 |
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Pan No. : |
ABXPM9857F |
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|
|
Name : |
Mr. Ashish Kumar Mishra |
|
Designation : |
Manager |
|
Address : |
Flat # 102, Kadambari Apartments, Plot #22, Sector 1, Sanpada (East),
Navi Mumbai – 400 705, Maharashtra, India |
|
Date of Birth/Age : |
23.03.1977 |
|
Date of Appointment : |
01.04.2010 |
|
Pan No. : |
AHYPM1872F |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 25.08.2010
|
Category |
Percentage |
|
|
|
|
Bodies corporate |
100.00 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Provides Online
Trading, share broking services, wealth management etc with the latest online
trading platforms. |
|
|
|
|
Products : |
Stock Broking and Related Services |
GENERAL INFORMATION
|
No. of Employees : |
Not divulged by management |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
B S R and Company Chartered Accountant |
|
Address : |
Lodha Excelus, 1st Floor, Apollo Mills Compound, N M Joshi
Marg, Mahalakshmi, Mumbai – 400011, |
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Pan No.: |
AAAFB9852F |
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Holding Company : |
CIN: L67120MH1997PLC110386 |
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Enterprises that
have Control over the Company : |
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Companies having
Significant influence |
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Fellow
Subsidiaries : |
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CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 600.000
Millions |
|
9,000,000 |
Preference Shares |
Rs. 100/- each |
Rs. 900.000
Millions |
|
|
Total |
|
Rs.
1500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38,232,758 |
Equity Shares |
Rs. 10/- each |
Rs. 382.327 Millions |
|
8,700,000 |
Compulsory Convertible Preference Shares |
Rs. 100/- each |
Rs. 870.000 Millions |
|
|
Total |
|
Rs. 1252.327 Millions |
Note:
i)
All the above shares are held by HSBC
InvestDirect (
ii)
All the above shares are held by HSBC Securities
and Capital Markets (
As On 25.08.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 600.000 Millions |
|
9,000,000 |
Preference Shares |
Rs. 100/- each |
Rs. 900.000
Millions |
|
|
Total |
|
Rs.
1500.000 Millions |
Issued, Subscribed & Paid-up Capital : Rs. 1303.109 millions
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 |
|
|
|
|
|
1] Share Capital |
1252.327 |
337.500 |
137.500 |
|
|
2] Share Application Money |
0.000 |
430.000 |
0.000 |
|
|
3] Reserves & Surplus |
1001.672 |
909.500 |
644.327 |
|
|
4] (Accumulated Losses) |
(1502.774) |
(1009.891) |
0.000 |
|
|
NETWORTH |
751.225 |
667.109 |
781.827 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
200.000 |
200.000 |
200.000 |
|
|
2] Unsecured Loans |
434.900 |
288.000 |
0.000 |
|
|
TOTAL BORROWING |
634.900 |
488.000 |
200.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1386.125 |
1155.109 |
981.827 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
389.604 |
452.424 |
238.196 |
|
|
Capital work-in-progress |
3.161 |
5.716 |
63.604 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
13.127 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
7.204 |
19.120 |
|
|
Sundry Debtors |
877.302
|
307.881 |
1465.568 |
|
|
Cash & Bank Balances |
938.127
|
743.804 |
774.782 |
|
|
Other Current Assets |
36.846
|
27.860 |
21.312 |
|
|
Loans & Advances |
967.423
|
757.771 |
640.455 |
|
Total
Current Assets |
2819.698
|
1844.520 |
2921.237 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1645.974 |
950.525 |
2157.723 |
|
|
Other Current Liabilities |
112.908
|
97.833 |
48.080 |
|
|
Provisions |
67.456
|
99.193 |
48.534 |
|
Total
Current Liabilities |
1826.338
|
1147.551 |
2254.337 |
|
|
Net Current Assets |
993.360
|
696.969 |
666.900 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1386.125 |
115.109 |
981.827 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1212.532 |
962.407 |
2138.209 |
|
|
|
Other Income |
1.574 |
9.314 |
4.181 |
|
|
|
TOTAL (A) |
1214.106 |
971.721 |
2142.390 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Sub-brokerage and commission |
164.455 |
134.904 |
339.919 |
|
|
|
Employee cost |
632.332 |
703.493 |
838.505 |
|
|
|
Administrative and General Expenses |
691.553 |
878.877 |
688.410 |
|
|
|
Prior period expense |
0.213 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
1488.553 |
1717.274 |
1866.834 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(274.447) |
(745.553) |
275.556 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
61.232 |
92.407 |
111.934 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(335.679) |
(837.960) |
163.622 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
156.665 |
177.126 |
98.285 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(492.344) |
(1015.086) |
65.337 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.539 |
22.632 |
42.766 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(492.883) |
(1037.718) |
22.571 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1009.891) |
27.827 |
5.256 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1502.774) |
(1009.891) |
27.827 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Other Income |
0.000 |
2.809 |
NA |
|
|
TOTAL EARNINGS |
0.000 |
2.809 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
(13.17) |
(62.11) |
1.64 |
|
|
|
- Diluted |
(13.17) |
(62.11) |
1.64 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(40.60)
|
(106.79) |
1.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(40.60)
|
(105.47) |
3.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(15.34)
|
(44.19) |
2.07 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.66
|
1.52 |
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.28
|
2.45 |
3.14 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.54
|
1.61 |
1.30 |
LOCAL AGENCY FURTHER INFORMATION
Background
HSBC InvestDirect
Securities (India) Limited (‘the Company’) is a registered Stock Broker, Merchant
Banker and Portfolio Manager registered with Securities and Exchange Board of
India (‘SEBI’). The Company was incorporated on 23 February 2006 and is a 100%
subsidiary of HSBC InvestDirect (
The Company
provides stock broking services, predominantly to retail investors, which
include broking services on security trading on recognised stock exchanges in
During the current year, the Company discontinued its Institutional
broking business.
The Details of
Sundry Creditors
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
- Micro, small and medium enterprises |
-- |
-- |
-- |
|
- Others |
1645.974 |
950.525 |
2157.723 |
|
Total |
1645.974 |
950.525 |
2157.723 |
OPERATIONS AND
OUTLOOK FOR THE CURRENT YEAR
During the financial year, the Company was successful to a large extent in getting various processes aligned to the HSBC Group Standards.
During the year, the Company received the approval from
Securities and Exchange Board of India to act as Depository Participant (DP) of
National Securities Depository Limited (NSDL) and Central Depository Services (
With a view to align the business with the long term strategy of HSBC InvestDirect, the Board of Directors vide resolution passed on 28.01.2010 and 19.05.2010 approved the discontinuation of Institutional Equities business and surrender of its Merchant Banking license respectively.
The income from
operations increased from Rs. 962.41 Million in the financial year 2008-09 to
Rs.1212.53 Million in the financial year 2009-10, the Company incurred a loss
before prior period items and tax of Rs. 492.13 Million for the year ended
March 31, 2010 as compared to Rs. 1015.09 Million incurred in the previous
year.
Revenues earned
out of Equity broking increased by 23% from Rs. 720 Mn. during financial year
2008-09 to Rs. 889 Mn. during the financial year 2009-10, while income earned
from distribution of the financial products increased from Rs. 98 Mn. to Rs.
105 Mn. during the same period. The overall revenues from the retail business
have increased by 31% from Rs. 853 Mn. to Rs. 1,114 Mn.
The last year saw the Company aligning itself to HSBC Group policies and procedures in a significant way. Several procedures and processes within the Company were not only enhanced and strengthened but also documented including for all branches of the Company.
INCREASE IN PAID
UP SHARE CAPITAL
During the year,
the Company issued 8,700,000 Compulsorily Convertible Preference shares of Rs.
100 each to HSBC Securities and Capital Markets (
Contingent liabilities and commitments to
the extent not provided for are as follows:
(i) Claims against the
Company not acknowledged as debt:
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
|
Income tax |
0.029 |
0.000 |
|
Legal and other matters |
46.075 |
23.785 |
|
Total |
46.104 |
23.785 |
(ii) Contracts
remaining to be executed on capital account net of advances amounting to Rs.3.161 millions (Previous year Rs.
0.963 million) (including Rs. 2.280
millions (Previous year Rs. 0.681 million) on software licenses).
Fixed Assets:
- Leasehold
improvements
- Office
equipments
- Data
processing equipment
- Electrical
installations
- Furniture and
fixtures
- Vehicles
- Purchased
software
- Internally
generated software
- Trademark
arrangement
- Goodwill on
business acquisition
AS PER WEBSITE
DETAILS
PROFILE:
Subject is a
premier financial services organization providing individuals and corporate
with comprehensive financial solutions. The HSBC Investdirect brand is a global
retail broking brand of HSBC. HSBC acquired IL and FS investsmart (in september
2008) and was rebranded as HSBC Investdirect (
Retail Broking Services
They offer multiple
products and services in the secondary markets that include Equity and
Derivatives. Retail customers can invest through us on both the NSE and BSE.
With a choice of three online trading platforms and also a network of branches
spread across the country, a customer has the option of choosing what suits
his/her needs. There specialized NRI services are designed to help NRIs who
wish to invest in the Indian markets.
Investment Advisory Services
With there
investment advisory services, customers can avail of reports that cover
fundamental and technical aspects of the market. Based on the profile of a
customer, there advisory team offers an entire gamut of reports that caters to
investors, traders and HNIs.
Distribution of Financial Products
As part of there Wealth
Management Solutions, they help customers choose Mutual Funds and IPOs.
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 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.44.15 |
|
|
1 |
Rs.72.10 |
|
Euro |
1 |
Rs.63.10 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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.