MIRA
INFORM REPORT
|
Report Date : |
06.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
SONATA INFORMATION TECHNOLOGY LIMITED |
|
|
|
|
Registered
Office : |
No. 208, T. V. Industrial Estate, K. Ahire Marg, Worli, Mumbai – 400
030, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
29.06.2000 |
|
|
|
|
Com. Reg. No.: |
11-127476 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.33.754 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U72300MH2000PLC127476 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Software Services. |
|
|
|
|
No. of Employees
: |
130 (Approximately) (In Office and In Branches) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1780000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of Sonata Software Limited. It is a well
established company having satisfactory track. Trade relations are reported
as fair. Business is active. Payments are reported to be correct 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.
INFORMATION DECLINED BY
|
Name : |
Mr. Hemant |
|
Designation : |
Office Executive |
|
Contact No.: |
91-22-24943055 |
|
Date : |
04.04.2012 |
LOCATIONS
|
Registered Office : |
No. 208, T. V. Industrial Estate, K. Ahire Marg, Worli, Mumbai – 400
030, |
|
Tel. No.: |
91-22-24943055 / 24923991 |
|
Fax No.: |
91-22-24396973 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
APS Trust Building, Bull Temple Road, N. R. Colony, Bangalore –
560019, Karnataka, India |
|
Tel. No.: |
91-80-30971999 |
|
E-Mail : |
|
|
|
|
|
Branch Office : |
24, I Floor, Okhla, Industrial Estate,
Phase – III, No.1-10-176, Suite # N-215, C, I Floor, 127/1, Flat No.2, Above Vidya Sahakari
Bank, Next to Hotel Sarjaa, Sanewadi, Aundh, Pune - 411 007, Maharashtra,
India |
DIRECTORS
As on 15.06.2011
|
Name : |
Mr. Byanna Ramaswamy |
|
Designation : |
Director |
|
Address : |
No. 342/6, 4th |
|
Date of Birth/Age : |
15.05.1954 |
|
Date of Appointment : |
29.06.2000 |
|
DIN No.: |
00001400 |
|
|
|
|
Name : |
Mr. Palem Reddy Srikar |
|
Designation : |
Director |
|
Address : |
306, |
|
Date of Birth/Age : |
30.05.1958 |
|
Date of Appointment : |
29.06.2000 |
|
DIN No.: |
00001401 |
|
|
|
|
Name : |
Mr. Brijendra Kumar Syngal |
|
Designation : |
Director |
|
Address : |
218, Mandakini Enclave, Alaknanda, |
|
Date of Birth/Age : |
14.06.1940 |
|
Date of Appointment : |
17.01.2005 |
|
DIN No.: |
00002395 |
|
|
|
|
Name : |
Mr. Sujit Mohanty |
|
Designation : |
Whole-time director |
|
Address : |
Flat # E 503, Fifth Floor, Block E, Sterling Terraces, No. 3, 100 ft
Ring Road, Banashankari IIIrd Stage, Bangalore – 560 085, Karnataka,
India |
|
Date of Birth/Age : |
22.12.1966 |
|
Date of Appointment : |
29.06.2000 |
|
DIN No.: |
00001404 |
|
|
|
|
Name : |
Mr. Narayanan Venkataraman |
|
Designation : |
Additional director |
|
Address : |
B-004, Adarsh Gardens, 47th Cross, 8th Block,
Jayanagar, Bangalore – 560082, Karnataka, India |
|
Date of Birth/Age : |
29.04.1971 |
|
Date of Appointment : |
12.03.2012 |
|
DIN No.: |
01856347 |
KEY EXECUTIVES
|
Name : |
Mr. Feroza Noshir Byramji |
|
Designation : |
Secretary |
|
Address : |
# 301, Hilla Towers, Dr. S S Rao Road, Lalbaug, Mumbai – 400 012,
Maharashtra, India |
|
Date of Birth/Age : |
30.12.1963 |
|
Date of Appointment : |
11.10.2003 |
|
|
AHQPB6905N |
|
|
|
|
Name : |
Mr. Hemant |
|
Designation : |
Office Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 15.06.2011
|
Names of Shareholders |
|
No. of Shares |
|
Byanna Ramaswamy |
|
100* |
|
P Srikar Reddy |
|
100* |
|
R Sathyanarayana |
|
100* |
|
Praveen Kumar D |
|
100* |
|
Mohan Muthuraj A R |
|
100* |
|
Sujit Mohanty |
|
100* |
|
P V S |
|
100* |
|
Sonata Software Limited, |
|
3374694 |
|
Total |
|
3375394 |
* (Beneficial Interest held by Sonata Software Limited w.e.f. 26.09.2000)
Equity Share Break up (Percentage of Total Equity)
As on 15.06.2011
|
Category |
Percentage |
|
Directors or relatives of Directors |
99.98 |
|
Other top fifty shareholders |
0.02 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Software Services |
||||
|
|
|
||||
|
Products/ Services : |
|
GENERAL INFORMATION
|
No. of Employees : |
130 (Approximately) (In Office and In Branches) |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Bankers : |
·
Axis Bank Limited, Corporate Banking Branch,
Express Building, 2nd Floor, No.1, Queens Road, Bangalore –
560001, Karnataka, India ·
Standard Chartered Bank, Raheja Towers, Sixth Floor,
No. 26-27, M G Road, Bangalore – 560 001, Karnataka, India ·
ING Vysya Bank, 22 Ground Floor, ING Vysya House,
M G Road, Bangalore 560001, Karnataka, India |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
N M Raiji and Company Chartered Accountants |
|
Address : |
6th Floor,
Universal Insurance Building', Pherozeshah Mehta Road, Fort, Mumbai - 400
001, Maharashtra, India |
|
PAN.: |
AAAFN4217G |
|
|
|
|
Holding Company : |
Sonata Software Limited CIN No.:
L72200MH1994PLC082110 |
|
|
|
|
Fellow Subsidiaries: |
Sonata Software FZ LLC |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6000700 |
Equity Shares |
Rs.10/- each |
Rs.60.007 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3375394 |
Equity Shares |
Rs.10/- each |
Rs.33.754 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
33.754 |
33.754 |
33.754 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
412.306 |
318.193 |
251.291 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
446.060 |
351.947 |
285.045 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
307.647 |
219.000 |
0.000 |
|
|
2] Unsecured Loans |
194.000 |
165.000 |
0.000 |
|
|
TOTAL BORROWING |
501.647 |
384.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.804 |
|
|
|
|
|
|
|
|
TOTAL |
947.707 |
735.947 |
285.849 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2.598 |
3.974 |
6.940 |
|
|
Capital work-in-progress |
1.012 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
4.629 |
1.252 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
22.054
|
77.286
|
28.891 |
|
|
Sundry Debtors |
900.173
|
785.950
|
1205.226 |
|
|
Cash & Bank Balances |
103.958
|
87.213
|
169.184 |
|
|
Other Current Assets |
19.020
|
20.254
|
10.800 |
|
|
Loans & Advances |
967.047
|
1031.061
|
735.046 |
|
Total
Current Assets |
2012.252
|
2001.764
|
2149.147 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
842.434
|
934.099
|
1493.502 |
|
|
Other Current Liabilities |
228.855
|
335.712
|
375.772 |
|
|
Provisions |
1.495
|
1.232
|
0.964 |
|
Total
Current Liabilities |
1072.784
|
1271.043
|
1870.238 |
|
|
Net Current Assets |
939.468
|
730.721
|
278.909 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
947.707 |
735.947 |
285.849 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5989.663 |
5036.061 |
6390.929 |
|
|
|
Other Income |
71.174 |
5.130 |
22.144 |
|
|
|
TOTAL (A) |
6060.837 |
5041.191 |
6413.073 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption material changes inventories |
5391.524 |
4513.966 |
|
|
|
|
Manufacturing service costs |
169.425 |
136.812 |
|
|
|
|
Employee related expenses |
215.584 |
196.708 |
|
|
|
|
Administrative selling other expenses |
111.579 |
49.003 |
|
|
|
|
TOTAL (B) |
5888.112 |
4896.489 |
6260.789 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
172.725 |
144.702 |
152.284 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
47.190 |
26.409 |
16.026 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
125.535 |
118.293 |
136.258 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1.595 |
2.995 |
4.085 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
123.940 |
115.298 |
132.173 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
39.122 |
39.100 |
46.648 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
84.818 |
76.198 |
85.525 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
301.236 |
225.038 |
139.513 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
386.054 |
301.236 |
225.038 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Software Services Rendered |
|
1.753 |
7.778 |
|
|
|
Sales Traded Products |
|
99.462 |
93.632 |
|
|
|
Total |
132.650 |
101.215 |
101.410 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Goods |
NA |
3512.208 |
3803.938 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
25.13 |
22.57 |
25.34 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.40
|
1.51
|
1.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.07
|
2.29
|
2.07 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.15
|
5.75
|
6.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28
|
0.33
|
0.46 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.53
|
4.70
|
6.56 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.88
|
1.57
|
1.15 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
|
Particulars |
31.03.2011
Rs. In Millions
|
31.03.2010
Rs.
In Millions |
31.03.2009 Rs.
In Millions |
|
Creditors due small micro enterprises |
0.000
|
0.000
|
0.000 |
|
Creditors due others |
842.434
|
934.099
|
1493.502 |
|
Total |
842.434
|
934.099
|
1493.502 |
BUSINESS REVIEW
The business of
the Company can be classified into two broad areas:
A. PRODUCTS
During the year,
the Company has increased number of sizeable customers for products business
and associated product based services. It has also won awards from various
principals for being the best partner for the year. The Company has
consolidated its position in the Indian market and has been rated the best in
the industry by various principals.
The Company's
strategy for the current financial year is to add new profitable product lines
and increase focus on product based and infrastructure management services.
B. BUSINESS SOLUTIONS
During the year,
the Company has shown strong growth across all the service offerings. Client
additions for end-to-end ERP implementation solutions were commendable. The
Company made significant client additions across all its ERP offerings. In
particular the company won a large order to implement Oracle Apps ERP at a
marquee media company and for the implementation of Axapta ERP at a prestigious
Central Government organization in the real estate space.
During the year,
the Company acquired a number of Enterprise class clients for add-on services
like post implementation support, upgrade services and ERP extension services.
In the IT
consulting space, the Company's strategy to focus deeper into existing accounts
during the year paid rich dividends. It has also helped increase customer
confidence levels in the Company.
The Company
continues to enjoy preferred partner status from all key principals.
Bankers Charges
Report as per Registry
|
Corporate identity number of the company |
U72300MH2000PLC127476 |
|
Name of the company |
SONATA INFORMATION TECHNOLOGY LIMITED |
|
Address of the registered office or of the principal place of business in |
No. 208, T. V. Industrial Estate, K. Ahire Marg, Worli, Mumbai – 400
030, Email : feroza.b@sonata-software.com
|
|
This form is for |
Creation of charge |
|
Type of charge |
Book debts Movable property Floating charge |
|
Particular of charge holder |
Axis Bank Limited, Corporate Banking Branch, Express Building, 2nd
Floor, No.1, Queens Road, Bangalore – 560001, Karnataka, India Email : Manjunagh.GS@axisbank.com
|
|
Nature of instrument creating charge |
Deed of Hypothecation of Bookdebts |
|
Date of instrument Creating the charge |
30.11.2011 |
|
Amount secured by the charge |
Rs.900.000 Millions |
|
Brief of the principal terms an conditions and extent and operation of
the charge |
Rate of interest SBLC- As may be prescribed by the Bank from time to time Terms of repayment 90 days shall be made available for utilisation till 31st December
2011 Margin Cash margin - 20% Extent and operation of the charge The charge shall operate to the extent of the loan amount plus
interest commission costs expenses and other charges thereon |
|
Short particulars of the property charged (Including location of the
property) |
Exclusive charge on the receivables of the orders from infosys
and other companies relating to specific orders |
Contingent
Liabilities (As on 31.03.2011)
Contingent Liabilities not provided for on disputed Income Tax demands (Inclusive
of Interest Charged) Rs.269.094 Millions (Rs 957.917 Millions) - explained
below
(a) The above
includes Rs.147.400 Millions on account of the disallowance of intercompany
Service Charges for Financial Year 2001-02, 2003-04 and 2004-05. The order of
the Income Tax Appellate Tribunal is in favor of the Company. The Department
has filed an appeal in this regard to the High Court of Mumbai which has been
admitted
(b) The above
includes Rs.121.700 Millions for the Financial Year 2007-08 mainly on account
of the disallowance of intercompany Service Charges and deputation expenses.
The Company for these year has filed appeal before the Commissioner of Income
Tax (Appeals).
The Supreme Court
by its order of September 9, 2010 overruled the order of the High Court of
Karnataka which had held that irrespective of the nature of payment, in the
absence of a lower withholding order, income-tax had to be withheld on all
payments made to overseas parties. Further, the Supreme Court remanded the
cases back to the High Court of Karnataka for a fresh review and to examine
whether payments made to overseas parties for purchase of software were in the
nature of 'Royalty' and if so whether tax had to be withheld at source on the
same.
Based on the above
Supreme Court order the following demands on the Company are not considered as
contingent liability.
i. Rs.218.200
Millions as tax which had not been deducted by the Company on payments made to overseas
parties for purchase of software for the Financial Years 2000-2001 and 2001
2002. However, for these years one of the principal suppliers of software to
the Company has paid Rs.128.600 Millions out of the above demand.
ii. Rs. 881.800
Millions of tax demand for the Financial Year 2007-2008 on account of
disallowances of payments made for purchase of software on which tax had not
been deducted at source. This demand is consequent to the principle covered in
point (i) above.
iii. For the
financial years 2000-2001 and 2002-2003, the issue regarding disallowance of
payments made for purchase of software was raised by the Department to the High
Court of Mumbai. The High Court had dismissed these appeals as being �time
barred'. The total demand for the aforementioned years for which the appeals
were dismissed by the High Court is Rs.824.800 Millions. On a special leave
petition filed by the Department, the Supreme Court has now referred back to
High Court of Mumbai to reconsider the dismissal for the Financial Year
2002-03.
iv. For the
Financial Year 2001-2002, the Departmental appeal on the same issue as above
has been admitted by the High Court of Mumbai. The demand under consideration
for the said year is Rs.324.000 Millions.
3 Contingent
Liability is respect of Karnataka Sales Tax F.Y.2001-02 is Rs.0.294 Million out
of which company has paid Rs.0.147 Million
4 .Estimated
amount of contracts remaining to be executed and not provided (net of advances)
Rs.0.376 Million (Nil)
FIXED ASSETS
·
Leasehold Improvements
·
Plan and Machinery
·
Furniture and Fixtures
·
Motor Car and Vehicles
·
Air Conditioners and Other Equipments
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.51.05 |
|
|
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.67.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
47 |
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.