MIRA
INFORM REPORT
|
Report Date : |
26.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
LARSEN AND TOUBRO INFOTECH LIMITED (w.e.f. 31.03.2002) |
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|
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Formerly Known
As : |
L&T INFORMATION TECHNOLOGY LIMITED |
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Registered
Office : |
L and T House, Ballard Estate, Mumbai – 400 001, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
23.12.1996 |
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Com. Reg. No.: |
11-104693 |
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Capital
Investment/ Paid-up Capital: |
Rs. 161.250
Millions |
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|
|
CIN No.: [Company Identification
No.] |
U72900MH1996PLC104693 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUML04432B |
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PAN No.: [Permanent Account No.] |
AAACL1681P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject is mainly engaged in the business of Software
Development. |
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No. of
Employees: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 44000000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and highly respectable company having
fine track. Financial position of the company is good. Fundamentals are
strong and healthy. Trade relations are reported as fair. Payments are
reported to be regular and as per commitments. The company can be considered good for normal 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. Harish |
|
Designation : |
Finance Manager |
|
Date : |
23.04.2012 |
LOCATIONS
|
Registered Office : |
L and T House, Ballard Estate, Mumbai – 400 001, |
|
Tel. No.: |
91-22-67525656 / 67766138 |
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Fax No.: |
91-22-67525858 / 67525893 / 67768162 |
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E-Mail : |
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Website : |
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Technologies Centers : |
Located at: ·
Powai, Mumbai ·
·
Airoli, Navi Mumbai ·
Pune ·
Bengaluru ·
Chennai ·
·
Hinjewadi, Pune |
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|
|
|
Technologies Centre : |
Locate at: ·
Vadodara ·
|
DIRECTORS
As on 30.09.2011
|
Name : |
Mr. Anilkumar Manibhai Naik |
|
Designation : |
Director |
|
Address : |
High Trees, 54 Pali Hills, Bandra (West), Mumbai – 400050, |
|
Date of Birth/Age : |
09.06.1942 |
|
Date of Appointment : |
23.12.1996 |
|
DIN No.: |
00001514 |
|
Name : |
Mr. Yeshwant Moreshar Deosthalee |
|
Designation : |
Director |
|
Address : |
Flat No. 1001, Prabhu Kutir, 15, |
|
Date of Birth/Age : |
06.09.1946 |
|
Date of Appointment : |
23.12.1996 |
|
DIN No.: |
00001698 |
|
Name : |
Mr. Ram Nath Mukhija |
|
Designation : |
Director |
|
Address : |
Varsha, Flat No. 501, Janki Kutir Juhu, Mumbai - 400049, |
|
Date of Birth/Age : |
05.02.1944 |
|
Date of Appointment : |
13.08.2004 |
|
DIN No.: |
00001653 |
|
Name : |
Mr. Vijay Kumar Magapu |
|
Designation : |
Director / Manager |
|
Address : |
Flat No. 402/403, |
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Date of Birth/Age : |
12.06.1945 |
|
Date of Appointment : |
13.08.2004 |
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DIN No.: |
00001658 |
|
Name : |
Mr. Samir Thakorbhai Desai |
|
Designation : |
Director |
|
Address : |
7050, NW 126, Terrace, |
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Date of Birth/Age : |
26.08.1946 |
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Date of Appointment : |
27.01.2007 |
|
DIN No.: |
01182256 |
|
Name : |
Mr. Sankaranarayana Rama Iyer |
|
Designation : |
Director |
|
Address : |
Flat No. 32, Rashmi Swarnakutir, Premises Co-op Society, |
|
Date of Birth/Age : |
19.08.1939 |
|
Date of Appointment : |
27.01.2007 |
|
DIN No.: |
00076549 |
KEY EXECUTIVES
|
Name : |
Ms. Angna Arora |
|
Designation : |
Company Secretary |
|
Address : |
C-703, Sunflower, Valley of Flowers, Gundecha, |
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Date of Birth/Age : |
16.09.1978 |
|
Date of Appointment : |
03.08.2011 |
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PAN No.: |
AIBPA4887E |
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|
|
|
Name: |
Mr. Arunachalam
Ramanathan |
|
Designation: |
Head - Travel and Visa |
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Qualification: |
BE |
|
Date of birth/age : |
46 Years |
|
Date of appointment : |
01.04.2010 |
|
Experience : |
24 Years |
|
|
|
|
Name: |
Mr. V. Chandrashekhar |
|
Designation: |
Executive Vice President, Head of MFG -1 BU |
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Qualification: |
MSc (Tech) |
|
Date of birth/age : |
45 Years |
|
Date of appointment : |
11.05.2005 |
|
Experience : |
24 Years |
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|
|
|
Name: |
Mr. Uday Srikrishna Gharpure |
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Designation: |
Head of Global Operations |
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Qualification: |
ME |
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Date of birth/age : |
53 Years |
|
Date of appointment : |
19.04.2007 |
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Experience : |
30 Years |
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|
|
|
Name: |
Mr. Sudip Banerjee |
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Designation: |
Chief Executive Officer |
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Qualification: |
BA (Economics), Diploma in Management |
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Date of birth/age : |
51 Years |
|
Date of appointment : |
01.09.2008 |
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Experience : |
27 Years |
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|
|
|
Name: |
Mr. Abhay Kelkar |
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Designation: |
Executive Vice President and Head - BFS |
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Qualification: |
CA |
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Date of birth/age : |
55 Years |
|
Date of appointment : |
01.10.2002 |
|
Experience : |
30 Years |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
No. of Shares |
|
Larsen and Toubro Limited, |
32249988 |
|
Anilkumar Manibhai Naik Jointly with Larsen and Toubro Limited,
|
2 |
|
Yeshwant Moreshwar Deosthalee Jointly with Larsen and Toubro
Limited, |
2 |
|
Jagdish Pandurang Nayak Jointly with Larsen and Toubro Limited, |
2 |
|
Ram Nath Mukhija Jointly with Larsen and Toubro Limited, |
2 |
|
Krishnanurthi Venkataramanan Jointly with Larsen and Toubro Limited, |
2 |
|
Vijaykumar Magapu Jointly with Larsen and Toubro Limited, |
2 |
|
Total |
32250000 |
As on 30.09.2011
|
Category |
|
Percentage |
|
Bodies corporate |
|
100.00 |
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is mainly engaged in the business of Software
Development. |
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|
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Products : |
Software Development |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Sharp and Tannan Chartered Accountants |
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Address : |
Ravindra Annexe, 194, Churchgate Reclamation, |
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PAN No.: |
AAAFS2967E |
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Holding Company: |
Larsen and Toubro Limited, CIN No.: L99999MH1946PLC004768 |
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Wholly Owned Subsidiaries: |
CIN No.: U72200TZ1997PLC008145
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
As on 30.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32750000 |
Equity Share |
Rs.5/- each |
Rs. 163.750 Millions |
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32250000 |
Equity Share |
Rs.5/- each |
Rs. 161.250
Millions |
|
|
|
|
|
Note:
(All the above Equity shares are held by Larsen
and Toubro Limited, the holding company.)
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 |
161.250 |
161.250 |
158.437 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11014.959 |
9672.860 |
5738.208 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11176.209 |
9834.110 |
5896.645 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
699.057 |
445.778 |
1221.801 |
|
|
2] Unsecured Loans |
1679.413 |
0.000 |
0.654 |
|
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TOTAL BORROWING |
2378.470 |
445.778 |
1222.455 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
Deferred purchase considerable payable |
0.000 |
0.000 |
342.360 |
|
|
|
|
|
|
|
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TOTAL |
13554.679 |
10279.888 |
7461.460 |
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|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
1916.601 |
1618.472 |
1647.753 |
|
|
Capital work-in-progress |
200.961 |
231.093 |
67.228 |
|
|
|
|
|
|
|
|
INVESTMENT |
5108.416 |
2811.224 |
2229.275 |
|
|
DEFERREX TAX ASSETS |
57.477 |
11.160 |
7.404 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000 |
|
|
Sundry Debtors |
4661.990
|
3607.287
|
4161.961 |
|
|
Cash & Bank Balances |
1312.749
|
1539.713
|
1115.417 |
|
|
Other Current Assets |
1142.061
|
810.329
|
624.513 |
|
|
Loans & Advances |
4558.639
|
3900.344
|
3181.887 |
|
Total
Current Assets |
11675.439
|
9857.673 |
9083.778 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
3584.493 |
2956.822
|
4396.985 |
|
|
Other Current Liabilities |
625.331
|
159.482
|
294.156 |
|
|
Provisions |
1194.391
|
1133.430
|
882.837 |
|
Total
Current Liabilities |
5404.215
|
4249.734 |
5573.978 |
|
|
Net Current Assets |
6271.224
|
5607.939 |
3509.800 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13554.679 |
10279.888 |
7461.460 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
23318.122 |
17767.648 |
19508.381 |
|
|
|
Other Income |
230.920 |
349.721 |
245.245 |
|
|
|
TOTAL (A) |
23549.042 |
18117.369 |
19753.626 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing service costs |
1919.847 |
1417.154 |
|
|
|
|
Employee related expenses |
12963.172 |
9554.204 |
16322.966 |
|
|
|
Administrative selling other expenses |
4321.654 |
3488.589 |
|
|
|
|
TOTAL (B) |
19204.673 |
14459.947 |
16322.966 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4344.369 |
3657.422 |
3430.660 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
62.894 |
27.512 |
82.806 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4281.475 |
3629.910 |
3347.854 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
594.997 |
482.374 |
453.590 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3686.478 |
3147.536 |
2894.264 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
557.325 |
336.163 |
246.046 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3129.153 |
2811.373 |
2648.218 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6744.172 |
5170.101 |
2995.992 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
|
|
300.000 |
289.225 |
|
|
|
Interim Dividend |
2167.513 |
801.147 |
158.027 |
|
|
|
Proposed Dividend |
|
0.000 |
0.000 |
|
|
|
Tax on Dividend |
|
136.155 |
26.857 |
|
|
BALANCE CARRIED
TO THE B/S |
7705.812 |
6744.172 |
5170.101 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
Software exports |
21817.396 |
16828.143 |
18701.079 |
|
|
|
Other Income |
2.484 |
123.157 |
110.373 |
|
|
|
TOTAL |
21819.880 |
16951.300 |
18811.452 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
35.310 |
136.283 |
95.129 |
|
|
|
Others |
39.558 |
21.311 |
39.829 |
|
|
TOTAL IMPORTS |
74.868 |
157.594 |
134.958 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
97.03 |
87.73 |
83.79 |
|
|
|
Diluted |
95.91 |
86.79 |
82.82 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
13.29
|
15.52 |
13.41 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.81
|
17.71 |
16.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
27.01
|
27.40 |
27.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.32 |
0.49 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.70
|
0.48 |
1.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.16
|
2.32 |
1.63 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
|
Particulars |
Rs.
In Millions 31.03.2011 |
Rs.
In Millions 31.03.2010 |
Rs.
In Millions 31.03.2009 |
|
|
|
|
|
|
Sundry Creditors |
3584.493 |
2956.822
|
4396.985 |
|
|
|
|
|
|
Check list by info
Agents |
Available in Report (Yes/ No) |
|
Year of Establishment |
Yes |
|
Locality of the Firm |
Yes |
|
Constructions of the Firm |
Yes |
|
Premises details |
No |
|
Type of Business |
Yes |
|
Line of Business |
Yes |
|
Promoter’s Background |
Yes |
|
No. of Employees |
No |
|
Name of Person Contacted |
Yes |
|
Designation of Contact person |
Yes |
|
Turnover of Firm for last three years |
Yes |
|
Profitability for last three years |
Yes |
|
Reasons for variation <> 20% |
---------------- |
|
Estimation for coming financial year |
No |
|
Capital in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
---------------- |
|
Litigations that the firm/ Promoters Involved in |
---------------- |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
--------------- |
|
Buyer visit details |
----------- |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
Yes |
PERFORMANCE OF THE
COMPANY
The year 2010-11
has been the year of recovery post the global economic recession, with varied economic
environment in the developed and emerging markets. Inspite of an increase in
discretionary spending and demand, there is cautious optimism for sustained
growth with clients seeking transformational deals. The industry focused on
emerging verticals, markets, new customer segments while driving customer
innovation led transformation in client organizations and internal operations.
This year also saw wide ranging contract restructuring exercises and deal size
reductions as the industry accepted new business models and budgetary
constraints.
While cost and
talent still remain the essential considerations, savvy customers are
constantly demanding higher levels of flexibility and innovation. New customer
acquisitions which required initial onsite presence have led to an increase in
local hiring and onsite subcontractors. Onsite revenue as percentage of total
revenue increased from 49% to 53%. This coupled with increased offshore wage
costs and recruitment of trainees impacting billability has led to pressure on
margins. The revenue contribution from North America increased marginally from
66% to 67%, with Europe maintaining at 15% and
SUBSIDIARY COMPANIES
As on March 31,
2011, the company had wholly owned subsidiaries namely, Larsen and Toubro
Infotech GmbH, Larsen and Toubro Infotech Canada Limited, Larsen and Toubro
Infotech LLC, GDA Technologies Inc. including GDA Technologies Limited, a step
down subsidiary and L and T Infotech Financial Services Technologies Inc.
During the year,
the services business of GDA Technologies Inc. (GDA) has been transferred to
the company, with GDA continuing the business in IP / CDMS areas.
Bank charges:
|
Corporate
identity number of the company |
U72900MH1996PLC104693 |
|
Name of the
company |
LARSEN AND TOUBRO INFOTECH LIMITED |
|
Address of the
registered office or of the principal place of business in |
L and T House, Ballard Estate, Mumbai-400001, |
|
This form is for |
Modification of
Charge |
|
Charge
identification number of the charge to be modified |
10244870 |
|
Type of charge |
Book Debts |
|
Particular of
charge holder |
Bank of |
|
Nature of
instrument creating charge |
Supplemental
Agreement of Hypothecation of Book Debts/ Receivables dated December 13, 2010
entered between Larsen and Toubro Infotech Limited and Bank of Baroda |
|
Date of
instrument Creating the charge |
13.12.2010 |
|
Amount secured by
the charge |
Rs. 250.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest 200 bps over LIBOR
per annum Terms of Repayment As per the terms
mentioned in Supplemental Agreement of Hypothecation. Margin 10% Extent and Operation of the charge Exclusive First
Pari passu charge created on the book debts of the company to the extent of Rs.
250.000 Millions with other banks as mentioned in the original charge dated
23.09.2010, so as to cover now the banks aggregate exposure on account of
packing credit facilities and bank guarantee limits. |
|
Short particulars
of the property charged |
Book Debts/
Receivables in respect of supplies made to various government departments or
limited companies etc. as evidenced by supply bills/ receipted challans in to
the extent of Rs. 250.000 Millions |
|
Date of
instrument modifying the charge |
23.09.2010 |
|
Particulars of
the present modification |
The charge
earlier created on September 23, 2010 for Rs. 250.000 Millions on the said
Debts under the Principal Agreement dated September 23, 2010, shall extent and
henceforth shall also be a continuing security to secure the Packing Credit
limit earmarking existing bank guarantee limit of Rs. 250.000 Millions only. |
Fixed Assets:
- Building
- Plant and Machinery
- Computers
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. 52.48 |
|
|
1 |
Rs. 84.65 |
|
Euro |
1 |
Rs. 69.25 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
ACH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
66 |
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.