|
Report Date : |
25.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
L&T INVESTMENT MANAGEMENT LIMITED |
|
|
|
|
Registered
Office : |
L&T House, Ballard Estate, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
25.04.1996 |
|
|
|
|
Com. Reg. No.: |
11-229572 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1500.000
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65991MH1996PLC229572 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCC5819R |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
The Company’s main business is to manage assets of L&T Mutual Fund
and Portfolio Management Services. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 1022000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of L&T Finance Limited, The company can be considered for business dealings with some caution.
Note: DBS Cholamandalam Asset Management Limited is taken over by L&T Investment Management Limited in
September, 2010. |
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. Nilesh |
|
Designation : |
Accounts Department |
|
Contact No.: |
91-22-61366601 |
|
Date : |
23.04.2012 |
LOCATIONS
|
Registered Office : |
L&T House,
Ballard Estate, |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
27th Floor, Unit 1, World Trade Centre, Centre-1, Cuffe Parade,
Mumbai – 400 005, |
|
Tel. No.: |
91-22-61366601 |
|
Fax No.: |
91-22-61366603 |
DIRECTORS
As on 02.08.2011
|
Name : |
Mr. Sivaraman Narayanaswami |
|
Designation : |
Director |
|
Address : |
Flat No.43, Kalpataru, |
|
Date of Birth/Age : |
12.04.1958 |
|
Date of Appointment : |
20.01.2010 |
|
DIN No.: |
00001747 |
|
|
|
|
Name : |
Mr. Ramamurthi Shankar Raman |
|
Designation : |
Director |
|
Address : |
Room No.123, 12th Floor, Kalpataru Royale, Plot No.110,
Road No.29, Sion (East), Mumbai – 400 022, |
|
Date of Birth/Age : |
20.12.1958 |
|
Date of Appointment : |
20.01.2010 |
|
DIN No.: |
00019798 |
|
|
|
|
Name : |
Mr. Sunil Vinayak Patel |
|
Designation : |
Director |
|
Address : |
2989/H, 12th |
|
Date of Birth/Age : |
01.11.1949 |
|
Date of Appointment : |
21.01.1997 |
|
DIN No.: |
00050837 |
|
|
|
|
Name : |
Dr. Ramchandra Hanmant Patil |
|
Designation : |
Director |
|
Address : |
Flat No.901, |
|
Date of Birth/Age : |
05.09.1937 |
|
Date of Appointment : |
26.04.2010 |
|
DIN No.: |
00106812 |
|
|
|
|
Name : |
Mr. Raghunathan Sankaran |
|
Designation : |
Director |
|
Address : |
401, Sand |
|
Date of Birth/Age : |
03.08.1946 |
|
Date of Appointment : |
29.11.2006 |
|
DIN No.: |
00517220 |
|
|
|
|
Name : |
Mr. Ved Prakash Chaturvedi |
|
Designation : |
Additional Director |
|
Address : |
121, Venus Apartments, Cuffe Parade, Mumbai – 400 005, |
|
Date of Birth/Age : |
28.07.1965 |
|
Date of Appointment : |
07.09.2011 |
|
DIN No.: |
00030839 |
KEY EXECUTIVES
|
Name : |
Mr. Nilesh |
|
Designation : |
Accounts Department |
|
E-Mail : |
|
|
|
|
|
Name : |
Mr. Vinay Prakash Tripathi |
|
Designation : |
Secretary |
|
Address : |
C 1010, Maruti Paradise, Sector 15, CBD Belapur, Navi Mumbai – 400
614, |
|
Date of Birth/Age : |
01.11.1981 |
|
Date of Appointment : |
08.11.2010 |
|
PAN No.: |
AEIPT7780G |
|
|
|
|
Name : |
Raji Vishwanathan |
|
Designation : |
Manager |
|
Address : |
701, |
|
Date of Birth/Age : |
23.05.1959 |
|
Date of Appointment : |
29.07.2010 |
|
PAN No.: |
AACPV5881A |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 02.08.2011
|
Names of Shareholders |
|
No. of Shares |
|
Y.M. Deosthalee and L&T Finance Limited, |
|
2* |
|
R. Shankar Raman and L&T Finance Limited, |
|
1* |
|
N.Sivaraman and L&T Finance Limited, |
|
1* |
|
V.J. Shukla and L&T Finance Limited, |
|
1* |
|
N. Hariharan and L&T Finance Limited, |
|
1* |
|
L&T Finance Limited, |
|
149999993 |
|
Subhodh Shetty and L&T Finance Limited, |
|
1* |
|
Total |
|
150000000 |
* The Company is a wholly owned subsidiary of
L&T
Finance Limited. For the purpose of complying with the provision regarding
minimum number of members, 7 shares are held by six individuals as detailed
above pursuant to section 187c of the companies Act, 1956.
As on 28.03.2012
|
Names of Allottee |
|
No. of Shares |
|
L&T Finance Limited, |
|
5000000 |
|
Total |
|
5000000 |
As on 02.08.2011
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company’s main business is to manage assets of L&T Mutual Fund
and Portfolio Management Services. |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Mumbai, |
|
Income-tax
PAN of auditor or auditor's firm : |
AACFD4815A |
|
|
|
|
Parent Company : |
L&T Finance Limited, CIN No.:
U65990MH1994PLC083147 |
|
|
|
|
Holding Company
: |
L&T Capital
Holdings Limited (From January 20, 2010) |
|
|
|
|
Ultimate Holding
Company : |
Larsen and Toubro Limited (From January 20, 2010) |
|
|
|
|
Fellow
Subsidiaries : |
DBS Cholamandalam Distribution Limited (up till January 19, 2010) |
CAPITAL STRUCTURE
After 02.08.2011
Authorised Capital :
Rs.2100.000 millions
Issued, Subscribed & Paid-up Capital : Rs.1650.000 millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
160000000 |
Equity Shares |
Rs.10/- each |
Rs.1600.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000
millions |
|
|
|
|
|
Out of above
149,999,993 are held by L&T Finance Limited, the holding company. The
ultimate holding company is Larsen and Toubro Limited.
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 |
1500.000 |
1100.000 |
750.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(1244.413) |
(848.646) |
(576.780) |
|
|
NETWORTH |
255.587 |
251.354 |
173.220 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
255.587 |
251.354 |
173.220 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
27.446 |
21.334 |
16.430 |
|
|
Capital work-in-progress |
2.528 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
218.611 |
282.147 |
227.194 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
16.945
|
8.976 |
2.130 |
|
|
Cash & Bank Balances |
0.852
|
0.258 |
0.397 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
53.674
|
24.460 |
14.326 |
|
Total
Current Assets |
71.471
|
33.694 |
16.853 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
48.586 |
74.162 |
78.519 |
|
|
Other Current Liabilities |
5.882
|
4.241 |
3.448 |
|
|
Provisions |
10.001
|
7.418 |
5.290 |
|
Total
Current Liabilities |
64.469
|
85.821 |
87.257 |
|
|
Net Current Assets |
7.002
|
(52.127) |
(70.404) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
255.587 |
251.354 |
173.220 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating revenue, net |
75.611 |
35.181 |
31.921 |
|
|
|
Other Income |
10.471 |
8.501 |
17.871 |
|
|
|
TOTAL |
86.082 |
43.682 |
49.792 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Administrative selling other expenses |
416.793 |
226.721 |
260.665 |
|
|
|
Exceptional income expense, net |
59.949 |
84.830 |
161.124 |
|
|
|
TOTAL |
476.742 |
311.551 |
421.789 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(390.660) |
(267.869) |
(371.997) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
5.089 |
3.949 |
3.774 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
(395.749) |
(271.818) |
(375.771) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.017 |
0.049 |
1.864 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
(395.766) |
(271.867) |
(377.635) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(848.647) |
(576.780) |
(199.145) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1244.413) |
(848.647) |
(576.780) |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(3.20) |
(3.22)
|
(7.40) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(459.75)
|
(622.38)
|
(754.68)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(523.40)
|
(772.63)
|
(1177.19)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(400.08)
|
(493.96)
|
(1129.02)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.55)
|
(1.08)
|
(2.17)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.25
|
0.34 |
0.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.11
|
0.39 |
0.19 |
LOCAL AGENCY FURTHER INFORMATION
Important Note:
L&T Investment
Management Limited having by special resolution altered the provisions of its
Memorandum of Association with respect to the place of the Registered Office by
changing it from the state of Tamilnadu to the
DBS Cholamandalam
Asset Management Limited which was originally incorporated on Twenty Fifth day
of April Nineteen Hundred Ninety Six under the Companies Act, 1956 (No. 1 of 1956)
as Cholamandalam Cazenove AMC Limited having duly passed the necessary
resolution in terms of Section 21 of the Companies Act, 1956 and the approval
of the Central Government signified in writing having been accorded thereto
under Section 21 of the Companies Act, 1956, read with Government of India,
Department of Company Affairs, New Delhi, Notification No. G.S.R 507 (E) dated
24.06.1985 vide SRN A78180114 dated 15.02.2010 the name of the said company is
this day changed to L&T Investment Management Limited and this Certificate
is issued pursuant to Section 23(1) of the said Act.
PRESS RELEASES:
L&T FINANCE TO TAKE OVER DBS CHOLA ON
FEBRUARY 15
BUREAU
KOLKATA
L&T Finance Limited, the financial services arm of Larsen and Toubro
(L&T), will formally take over DBS Cholamandalam Asset Management Company
on February 15 along with its assets under management of Rs.26000.000 millions.
L&T Finance chief executive SK Maheswari said the company expects to
commence its asset management business by March 2010, subject to regulatory
approvals.
L&T Finance had acquired 100% in DBS Cholamandalam for Rs.450.000 millions
last year. DBS Chola is now likely to be rechristened L&T Mutual Fund.
Mr. Maheswari said an exit option had been offered to existing investors of DBS
Cholamandalam but a majority of them were willing to continue their investment
with the new avatar of the entity.
Existing investors of DBS Cholamandalam are mostly from southern
The issue size includes a greenshoe option of Rs.2500.000 millions.
The issue will remain open till February 22.The company raised Rs.30000.000
millions till March this fiscal and it plans to raise another Rs.10000.000
millions.
Details of Sundry Creditors:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
- Creditors due small micro enterprises |
0.000 |
0.000 |
0.000 |
|
- Creditors due others |
48.586 |
74.162 |
78.519 |
|
Total |
48.586 |
74.162 |
78.519 |
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of
Establishment |
Yes |
|
2) Locality of
the firm |
Yes |
|
3) Constitutions
of the firm |
Yes |
|
4) Premises
details |
No |
|
5) Type of
Business |
Yes |
|
6) Line of
Business |
Yes |
|
7) Promoter’s
background |
Yes |
|
8) No. of
employees |
No |
|
9) Name of person
contacted |
Yes |
|
10) Designation
of contact person |
Yes |
|
11) Turnover of
firm for last three years |
Yes |
|
12) Profitability
for last three years |
Yes |
|
13) Reasons for
variation <> 20% |
-- |
|
14) Estimation
for coming financial year |
No |
|
15) Capital in
the business |
Yes |
|
16) Details of
sister concerns |
Yes |
|
17) Major
suppliers |
No |
|
18) Major
customers |
No |
|
19) Payments
terms |
No |
|
20) Export / Import
details (if applicable) |
No |
|
21) Market
information |
-- |
|
22) Litigations
that the firm / promoter involved in |
-- |
|
23) Banking
Details |
No |
|
24) Banking
facility details |
No |
|
25) Conduct of
the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials,
if provided |
Yes |
|
28) Incorporation
details, if applicable |
Yes |
|
29) Last accounts
filed at ROC |
Yes |
|
30) Major
Shareholders, if available |
Yes |
Note:
The registered office of the company has been shifted from Dare House, No.2,
ISSUE OF CAPITAL
During the
financial year ended March 31, 2011, the Company has made Rights issue of
4,00,00,000 equity shares of Rs. 10/- each (in various tranches).
OPERATIONS OF THE COMPANY
The total number
of folios under all Schemes of L&T Mutual Fund were 1,41,867 as on March 31,
2011 as compared to 1,12,097 as on March 31, 2010.
MARKET OVERVIEW / FUTURE OUTLOOK
Equity Market Overview
Financial Year
2011 witnessed the Indian equity markets breaching the earlier highs set in
2008 driven by record FII flows, strong earnings growth and global There were a
few sentimentally positive events for the markets primarily comprised of
successful listing of some of the PSUs, the 3G and Wimax spectrum auction The
second half of the year was marred by corruption and governance related issues,
including irregularities in 2G spectrum allocation. The infrastructure sector
Both emerging and developed market equity indices registered steady gains
during the financial year. While S&P CNX Nifty and Sensex appreciated by
11.1% Among the sectoral indices BSE Consumer durables (+47.8%), BSE Bankex
(+24.8%), BSE IT (+25%), BSE FMCG (+27%), BSE Auto (+21%) and BSE healthcare At
Current levels of 19500, Sensex is trading at 15.5x one year forward consensus
expected earnings. With 18-20% earnings growth expected to continue in FY12.
Debt Market Overview
Financial Year
2011 witnessed significant pressure on systemic liquidity which led to large
quantum of borrowing by scheduled commercial banks under LAF In fiscal 2011
banks shifted to new regime of base rate for determining interest rate on loans
provided from the previous system of benchmark prime lending rate.
Reserve Bank of
FUTURE OUTLOOK
Equity Market Outlook
The Indian equity
markets have been rallying on the back of flush global liquidity and a strong
domestic economy. Both these factors are now facing the headwinds The cues that
the market is looking for is a sustainable corporate profit growth.
Debt Market Outlook
Yields on
Government securities might move higher in next year as central bank’s
Inflation comfort is at a level of 5%.
CONTINGENT LIABILITIES:
Claims against the Company not acknowledged as
debts
|
Particulars |
31.03.2011 (Rs. in millions)
|
|
Disputed Income
Tax Liability |
0.338 |
The matter is
under appeal. The amount has been paid under protest and will be received as
refund if the matter is decided in favour of the Company.
FIXED ASSETS:
Tangible Assets
v Office Equipments
v Computer Hardware
v Furniture and
Fixtures
v Vehicles
Intangible Assets
v Computer Software
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.52.79 |
|
|
1 |
Rs.85.17 |
|
Euro |
1 |
Rs.69.53 |
INFORMATION DETAILS
|
Information Gathered
by : |
PDT |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
30 |
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.